4 times increase in pay expected in 7th Pay Commission: News by Tapas Joshi

Seventh Pay Commission: Four times increase in pay for Central Government Employees expected.

New Delhi: Tapas Joshi

2016 is a year expected to bring unbound happiness to the Central Government Employees. This year will end a long wait of 10 years, because the recommendations of the Pay Commission will be implemented in January 2016.

The Pay commission was established during the Manmohan Singh Government in February 2014. The deadline for the Pay commission was set to be 15 months. This leads to an expectation for the release of the Pay Commission report by September 2015. If the Memorandum submitted by the Various Employee Organisations is considered, the Pay Commission should provision recommendation for a four-fold increase in the current pay. During its tenure, the Pay Commission will travel to various cities, in addition to meeting the staff of various Employee Organisations. Here it is essential to note that during the sixth pay commission it was recommended to increase the pay of the Central Government Employees three-fold of their current pay.

Primary considerations in Pay Judgement:

The Pay of the Central Government Employees are compared with the Public sector employees such as BHEL, ONGC, etc and also with the Private sector employees. The minimum pay scale of the International Labor Union (ILO) is also considered as a norm. Further, the price of the various daily utility objects is taken into consideration. In the sixth pay commission the Inflation rate as on 01.01.2006 was also considered before putting up recommendations for the fresh Pay scales.

Things to be kept in mind by the Pay commission:

If we talk about the sixth pay commission the ratio of the minimum and maximum Pay was worked around as 1:12 and the minimum pay was decided to be Rs 7100. If in Rs 7100 we include House Rent Allowance, Transport Allowance, Education Allowance etc the figure increases up to Rs 10000.

This time the Dearness Allowance has crossed the figure of 100 percent, and according the Indian Labor Ministry the minimum pay should be Rs 15000 per month. If the inflation and minimum pay are considered, on today’s date the minimum pay should be increased from Rs 7100 to Rs 30000. If in this we include House Rent Allowance, Transport Allowance, Education Allowance etc the figure increases up to Rs 45000.

Thus the Pay of the Central Government Employees is expected to have a four-fold rise. The Central Government Employees are impatiently waiting for 2016, and we are also waiting to see how much do the Pay Commission stand up to the Expectations of the Central Government Employees.