7th Pay Commission: Challenging year for Central
Government Employees
The central government employees passed a challenging
year for a number of factors including hike in pay,
minimum pay hike, raising of fitment factor, pay
anomalies and non-payment of arrears on allowances,
employees unions said.
The delayed
implementation of allowances have saved the government
nearly Rs 40,000 crore. The non-payment of arrears on
allowances caused tremendous irritation and frustration
among the central government employees, said a unions
leader.
The government gave higher basic pay
in August 2016 with arrears, effective from January 1,
2016 to its employees on the recommendations of the 7th
pay commission but the allowances notified on June 6
without arrears, which came into effect from July 1,
2017.
The recommendations of the 7th Pay
Commission got the Cabinet nod on June 29, 2016 in
respect of basic pay, the pay panel had recommended a
14.27 per cent hike in basic pay. The previous 6th Pay
Commission had recommended a 20 per cent hike, which the
government doubled while implementing it in 2008.
All pay commissions made up pay gap in respect
of basic pay between lower paid employees and top
bureaucrats from second Pay Commission 1:41 ratio to
Sixth pay commission 1:12, while 7th Pay Commission made
it higher about to 1:14.
The 7th pay panel
recommended minimum pay from Rs 7,000 to Rs 18,000 per
month while the maximum pay from Rs 80,000 to Rs 2.5
lakh with a fitment factor of 2.57 times uniformly of
basic pay of 6th pay commission.
However, the
Unions have been demanding minimum pay Rs 26,000 instead
of Rs 18,000 with 3.68 fitment factor.
The
unions had claimed that the recommended pay hike was the
lowest in the last 70 years and the Pay Commission award
was not discussed with them, hence they had threatened
to go on an indefinite strike over proper pay hike on
July 11, 2016.
The unions had called off
their indefinite strike after the government announced
that a High Level Committee would be formed to address
their demands.
So, the government formed the
22-member National Anomaly Committee (NAC) headed by
Secretary, Department of Personnel and Training (DoPT)
in September, 2016 instead of High Level Committee to
look into pay anomalies arising out of the
implementation of the 7th Pay Commission’s
recommendations.
In the meantime, DoPT issued
a letter on October 30 stating that the demand for
increase in minimum Pay and fitment formula do not
appear to be treated as anomaly, therefore, these do not
come under the purview of NAC.
However,
Finance Minister Arun Jaitley had said in Rajya Sabha on
July 19, 2016, The minimum pay Rs 18,000 was made on
recommendations of the 7th Pay Commission. But
government will consider hiking it after discussions
with all stakeholders, once the proposal in this regard
will be submitted to government.
The
sources in DoPT said, "The NAC is ready with it’s
interim report and which will be submitted soon but no
minimum pay and fitment formula will be included in the
interim report."
"I would be lying if I said
the DoPT letter doesn’t bother me at all, but the truth
is, it doesn't bother me much because of the way of
government made decisions. A hike in minimum pay has
been one of the long-standing our demands. The 14.27 per
cent hike in basic pay for us under the 7th Pay
Commission is the lowest in 70 years. The government had
issued statement on July 6, 2016 to assure us that the
pay scales matter raised by us would be considered," a
top union leader said.
"Our unions members
often ask us what we should do to respond to the DoPT
letter," he said.
"If government doesn't hike
our pay, we will have no choice but to proceed on an
indefinite strike," he added.
He considers
2017 a challenging year for central government employees
and many of those challenges won't be going away just
because 2018 calendars are hanging. He also says he's
confident the government will make the right decisions
during the next year.