Mar 252016

Centre admits employees not happy with minimum pay recommended Pay Commission

The central govt. has admitted that the employees who work under them are not happy with the proposed minimum pay as per the 7th pay commission. According to the employees working in different departments of the central government, the minimum pay that was set to be 18 thousand in the pay commission released in the November month of 2015 is not sufficient enough and is very low compared to other pay scales. Most employees who have shown their sadness with the pay commission decision belong to low levels i.e. D grades and they are demanding a hike in the minimum salary of a central government employee from the implementation of the next pay scale.

Centre admits employees not happy with minimum pay recommended Pay Commission

Initial decision of the 7th pay commission regarding the highest and lowest salary 

In the report drafted by the pay commission working committee, it was decided that after the new pay commission gets implemented, the minimum salary that a central government employee or an employee working under any Govt. undertaking public organization will be Rs. 18, 000 per month. And the maximum salary that will be given by the govt. will be Rs. 2.5 lakh pr month, to the ranks of cabinet secretariats, auditor generals and defense chiefs. Earlier in the previous pay commission, i.e. the 6th pay commission, the minimum salary was Rs. 6,600 per month.

Why the Govt. is under pressure of increasing the minimum salary?

The central government is under huge pressure of hiking the minimum salary of the central govt. employees which was initially decided to be Rs. 18,000 per month. First of all, the trade unions, labor organizations and the employees associations of the various departments have shown dissatisfaction regarding the minimum salary in the 7th pay commission. Another pressure is the upcoming elections in various states and the central government does not want to lose votes on this issue. So there is a talk going on to have a balanced minimum salary.

 What is the current status regarding the increase of the minimum salary?

Currently, the negotiators from the finance ministry are holding discussions and meetings with the trade organization leaders and forming a committee to come to a point and fix a new minimum salary for the employees. The demand of the employees’ unions for the minimum salary range from Rs. 24,000 to Rs. 26, 000 per month. However, the centre is keen in coming to a compromise and has not yet come to a fixed solution. Reports are there that that the centre will settle down for nearly Rs. 20, 000 a month as the minimum salary.

Problems that may arise due to hike in the minimum salary

As per economists, there is already a financial burden coming in the way of the central govt. after the new pay commission gets implemented. An extra financial burden of Rs. 1.02 lakh crore is already going to happen. If the minimum salary slab is raised further, it will be very difficult for the centre.

Sl. No. 7th pay commission attributes Related Information
1 Minimum salary recommended at first Rs. 18,000 per month
2 Demand of employee unions Rs. 24,000 – Rs. 26,000 per month
3 Percentage hike in the basic pay 14.27 %
4 Expected minimum salary after implementation Rs. 20, 000
5 Financial burden if no change in minimum salary is made Rs. 1.02 lakh crore

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