Oct 242015

Pay Gap Problem: A Serious Issue for the Seventh Pay Commission

Seventh pay commission is facing serious difficulties in submitting its endorsement to government in raising the salaries and allowances for central government employees and the employees’ unions to test their account of notorious pay gap from top to bottom.
The previous commission showed that there was a huge gap between the lower level government employees and bureaucrats.

Pay Gap Problem

Work of earlier commission:

The first pay commission was declared to pay off the top bureaucrats 41times higher than the
government employees at lower level. The salary of top bureaucrat was Rs. 2263 while
the lowest earning was receiving Rs. 55. In 1947 the ratio of pay between lowest earning and highest earning employees was 1:41 and was deducted to 1:12 in 2006. The pay gap is indicated by the comparison between the minimum and the highest salary level which shows a minimum salary of RS.7730 to a maximum salary of Rs. 80,000.

Reducing the Gap: 

According to the Seventh Pay Commission they have to cogitate in reducing the difference of
pay ration between highest and lowest paid employees because it defines the socialism view of
government while the greater number of central employees is in bottom pay slabs.

The employees at the lower level are facing serious problem to have the good living standard because of the growing economic pressure. The employees at higher level are happy, healthy and are having better way of living as compared to the employees at lower level just because of their high pay scale.

Pay Gap is calculated as the ratio of pay of highest paid employee of an association to the pay of regular paid employee in the association. The Seventh pay commission can reduce the pay gap by reducing the inequalities between the pay of the lowest and highest paid employees. The recommendations made by head of the commission, Justice Ashok Marthur, will take effect from 1st January 2016.

The commission is discussing these issues with different stakeholder so as to reach a solution that is widely acceptable and enforceable. The commission is referring on paying payments nearly 5milliom government employees and 5.5 million pensioners. The report will be submitted till December 31st.

Reducing the Pay Gap will not be an easy task for the commission although continuous efforts and appropriate legislation can prove to be handful in reducing the pay gap.

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