7th Pay commission Minimum & Maximum Pay Ratio 1:12.5
The maximum and minimum salary ratio has created a lot of discontent among the central government employees. The employees have also sent many dissent letters to the government addressing their concerns for this. According to the 4th CPC the ratio between the maximum and minimum salaries was maintained as 10.7 and in the 5th CPC the ratio was proposed to be 10.97 in the recommendations but the ratio that was implemented was 1:11.76. This decision was taken by the Bureaucrats for their self-benefit.
After the implementation of the 6th Pay commission the maximum and minimum salary was raised to 1:12.85. This ratio was the same for the maximum and minimum salaries and pensions of the government employees and armed forces. This figure was very high in comparison to the ratio America and Britain. Implementation of the 6th CPC created many negative effects in the economy affecting the income inequality of the central government employees. Moreover, there was even inequality within pre 2006 retirees. The Bharat Pensioners Samaj also demanded that the ratio between the lowest and highest scale should be immediately brought down to 1:10 and there should be complete parity between the pre and post retirees. The maximum and minimum pension and salaries ratio was 2:1 till the 3rd Pay commission, but it was raised to 3.5 (65000):1(18000). This is the ratio for both pay and pension along with other post- retirement facilities. In our country there is a huge gap where the poor remain underprivileged and the billionaire community is increasing and growing. This inequality can be really dangerous for the country as it is the reason for corruption and crime to breed.
If equally the difference is not controlled in the pay and pensions in India, it will create uncontrolled discontent and frustration among the government employees and armed servicemen. In the dissent letters the government employees and armed officers have demanded that the ratio between the maximum and minimum salary and pension should be lowered to 2:1. This inequality can be really dangerous for the country as it is the reason for corruption and crime to breed. Hence the ratio needs to be reduced for the country to grow and motivate the government employees to contribute with their talent.
Following is the table for reference.
|Central Pay||Minimum||Maximum||Compression||Number of Pay|
|I CPC (1946-47)||55||2000||01:36.4||150 → 30|
|I CPC (1957-59)||80||3000||01:37.5||500 → 140|
|III CPC (1972-73)||196||3500||01:17.9||500 → 80|
|IV CPC (1983-86)||750||8000||01:10.7||153 → 36|
|V CPC (1994-97)||2550||26000||01:10.2||51 → 34|
|VI CPC (2006-08)||7000||80000||01:11.4||35 →19|
|[4 PBs with|
|15 GPs+ 4|
|7cpc Ratio – 1:12.5 Minimum Pay/Maximum Pay—-18,000/2,25,000|
Levels as per the Pay Matrix
|Existing Pay||Existing levels of||Available||New Levels|
|Cabinet Secretary, Defence Chiefs||18|
|* C: Civil; D: Defence; M: Military Nursing Service (MNS)|