Seventh Pay Commission Likely To Reduce Pay Ratio From 1:12 To 1:9
New
Delhi: Seventh Pay Commission is likely to recommend to reduce pay
ratio from 1:12 to 1:9 for the bottom grades employees and higher rungs’
pay structure to add a populist hue.
Seventh Central Pay Commission Chairman Justice Ashok Kumar Mathur (centre)
The
Commission, which will submit its report to the Finance Minister for
approval within December 31, suggest increasing the salary ratio of
bottom level central government employees for coping with high
inflation.
The
Seventh Pay Commission, headed by Justice Ashok Kumar Mathur was
appointed in February 2014 and its recommendations are scheduled to take
effect from January 1, 2016.
The
Pay Commission is likely to recommend increase 40 percent salaries hike
of central government employees on average, the full implementation of
which would raise the central government spending on salary and
allowance Rs 1,00,619 crore.
The
commission may recommend Rs 20,000 as salary for those in the bottom
grade and maximum Rs 180,000 for Secretary level officers.
The sources in the panel said pay parity ratio of mid-level tier officers will be maintained with the bottom grade.
Earlier,
all pay commissions had not only recommended for good salary to top
central government officials but also considered the disparity ratio
between its highest and lowest paid employees.
For
instance, in 1948, the post-tax salary of the highest paid government
official was Rs 2,263 which was 41 times higher than the Rs 55 paid to
the lowest earning employee. With subsequent pay commissions the ratio
was reduced to about 1:12 in 2006.
“The
Seventh Pay Commission may consider pay ratio of the pay of the bottom
paid employees to the pay of the highest paid officials will come down
to 1:9 from 1:12, “the official said.
The
first pay commission was recommended Rs 55 salary to the lowest earning
employee, second Rs 80, third Rs 185, fourth Rs 750, fifth Rs 2550 and
sixth Rs 6660.
“However,
the Seventh Pay Commission is likely to recommend Rs 20,000 salary for
lowest paid employees and Rs I,80,000 for highest paid officials, “ he
added.
The
government constitutes the Pay Commission almost every 10 years to
revise the pay scale of its employees and often states also implement
the panel’s recommendations after some modifications.
As
part of the exercise, the current Pay Commission holds discussions with
various stakeholders, including organisations, federations, groups
representing civil employees as well as defence services.
The
Sixth Pay Commission was implemented with effect from January 1, 2006,
the fifth from January 1, 1996 and the fourth from January 1, 1986. The
Seventh Pay Commission will be implemented with effect from January 1,
2016
Regards,
E.R.Iyer
