7th Pay Commission – Curtain Raiser

 “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″, sources indicate.

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.

Headed by Justice Ashok Kumar Mathur, the four-member 7th Pay Commission was appointed in February 2014 and the commission will hand over its recommendations to government within December 31, 2015.

Though the Official recommendations are yet to be submitted to the Government, there are many flares going around, some may be true and some may be flaws.

However, at the end of the day, it is the so called ‘sources’ who give some hint. The following is the latest the sources indicate…..

1. The commission may recommend government to ask Information and Technology department, whether it is possible to have systems in place for monitoring and supervising work being done remotely by disabled and women central government employees.

2. “As flexi working hours will allow women central government employees to strike a balance between her professional and family responsibility, maintain healthy lifestyles and contribute to parenting well, it is recommended for the same and urge upon the government to work out the modalities in this direction.”

3. Women employment under central government has been estimated to the tune of 3.37 lakh, which is 10.93 percent of the total regular central government employment, according to census of central government employees as on March 31, 2011.

4. “We are looking at whether it is technologically possible to allow disabled and women employees for working from home,” said the source. “A need was felt to provide work from home facility to persons with disabilities and women to enable them to effectively discharge their duties.,” he added.

5. 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.

6. 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.

7. 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.

8. 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.

9. “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″, sources indicate.

10. 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.

11. “However, the Seventh Pay Commission is likely to recommend Rs 20,000 salary for lowest paid employees and Rs.1,80,000 for highest paid officials, “.

12. Grade Pay was derived from USA and it has increased in prominence in the early 21st century in USA. Federal employees in USA at all levels are paid based on Grade Pays. The six pay commission followed them. A grade pay is a structured pay format where employees are placed at a given pay level based on their level of education and work experience related to the position.

13. “Central government has 15 grade pays now from Rs 1,800 to Rs 12,000 for job level pay variance of its employees. Generally, multi tasking staff (MTS) and clerical jobs that require formal education, just a high school or higher secondary, who are at are at the lower levels from grade pays 1,800 to 2,000.

14. Every employee does not get promotion in time. So, if Modified Assured Career Progression (MACP) Scheme is not maintained it will be seriously affected,” the sources said.

15. Accordingly, the sources said the Modified Assured Career Progression (MACP) Scheme is likely to be kept the current status quo.

16. Sources say, rather than hiking pay and allowances, the panel is focused on making employees more efficient, modern and valuable. ‘The commission was created to hike salaries and allowances for central government employees but the commission now is actually focused on “efficiency, technology, skills and Pay link with productivity.’

16. The central government employees federation strongly believe that the 7th pay commission cannot recommend revising the retirement age of central government employees, since it does not fall under the purview of 7th Pay Commission. It is the central Government which makes such decisions. Yes true, but it is under purview, sources indicate.

17. The Finance ministry has already opened its stand saying, the Seventh Pay Commission will be mindful of the fiscal concerns of the government while giving its report on new pay scales and remunerations for central government employees and pensioners. Sources indicate, hence the Finance ministry has a role to play in the final report of the 7th Pay Commission.

18. The pay panel will ask the central government to urge the insurance industry to come up with feasible health insurance solution for the central government employees and pensioners. The IRDA, the insurance regulatory body of India, will be compelled to ask the health insurance companies to offer a basic insurance to every central government employee and pensioner.

19. Health insurance would be available for central government employees and pensioners till death, the insured employees and pensioners will have to pay 50% of the premium from their salaries and pensions and the remaining 50% premium may be paid by the central government.

20. The CGHS is financed mainly through the Centre’s tax revenues. Though beneficiaries do contribute a share of their wages towards premium, ranging from Rs 600 to Rs 6,000 a year depending on their pay scale, this accounts for just about 5 per cent of the total expenditure. The government shells out the remaining 95 per cent. Now the Government is looking for ways to end the CGHS in its current form and to move to an insurance based health scheme to cut costs.