Following is the excerpt of a media report published in The Economic Times on 29th March 2015.
"Welcome to the behind-the-scenes maneuvering before the Big Sarkari Pay Hike. With a new pay scale for 36 lakh Central government employees, and also pensioners, likely to come into effect from January 1, 2016, the officers and non-gazetted staff of various services have been lobbying hard to get a good deal from the 7th CPC. Unlike in the private sector, the pay hike in government is a once-in-10-years-affair, making every CPC, right from the first that submitted its report in 1947, a hugely powerful agency. No doubt, government employees have to undergo an annual appraisal process called Annual Performance Appraisal Report (APAR), but that exercise is important only for promotion, and not for any pay hike. Government employees do get a regular hike in dearness allowance, a measure meant for offsetting inflationary pressure on their earnings, but at the end of the day it is the CPC that fixes the bureaucrats' pay for 10 long years.
That's precisely why officers and staff of of every service can't afford to ignore the CPC. Constituted in February 2014 under the chairmanship of retired Supreme Court judge Ashok Kumar Mathur, the 7th CPC has an economist and two bureaucrats as its members. Most of the employees' associations have already had at least one round of talks with the Commission. And some are waiting for Round II."
"To be sure, a formula towards pay parity has been the hallmark of the last few pay commissions. A government entry-level peon now gets a monthly pay of Rs 14,000, if dearness allowance is factored in. Similarly, a mid-level government driver's monthly salary, including allowances, is Rs 30,000, at least two times that of his counterpart in a private sector company. And that's why the salary gap between the lowest and highest paid government servant has drastically decreased over the last three decades."
"At present, only three major ministries — railways, external affairs and post — are not headed by IAS but run by their own cadres. Now, IPS wants a new department of internal security headed by a cop and IRS wants a separate direct tax department headed by a taxman.
Will the 7th CPC venture into such nuances? Or will it, like the past few pay commissions have, adopt a simple formula of Multiplier 3 under which the basic salary is hiked by three times or more depending on the economic health of the nation. If that is the case, it won't be too hazardous to make a prediction: A secretary to government of India will get a basic monthly salary (excluding DA) of Rs 2.4 lakh (current basic salary multiplied by three) and the cabinet secretary Rs 2.7 lakh from January 1, 2016. And, yes, perks, DA and other allowances will be extra."
Our Verdict :
Although hopes are very high from the Modi Government for the fitments and higher salary structure in 7th Pay Commission, but our expectation is that 7th Pay Commission salary for Central and State Government shall be a muted one, as what they did with the bank employees.
The present government in only playing with data and restructuring the data to show the bump up in the economy, which is on the same foot as was left by the UPA II government or we can say even weaker than previous central government. Now we need to look here is that how they will fit in the salary and chart structure of employees of central government in the 7th Pay Commission. It is expected that basic shall be merged and new basic shall be carved out of that but the merging of higher percentage of DA is not expected , as this will result in higher increase in salary as well as higher DA payout.
Hence we can expect a hike in gross salary to the tune to 12-16% from the present or that time gross salary from when the 7th Pay commission shall be expected.
Also there is some what chances that there might be some delay in implementing or finalising the chart and structure of 7th pay commission as in May 2019 election will be held and from 1 January 2016 new pay commission is to be implemented , so it can be delayed 1-2 years and may be finally announced in the year 2017 end or start of 2018 so that the present government can garner vote upon increasing the salary of central government.
( Sources : Authors View and Economic Times Newspaper )
Kindly note that Pay Commission is held every 10 years for the revision of pay and salary structure of Central Government , Public Sector Undertaking employees except the public sector bank employees.
And several state government also implement the pay structure on the similar line of central government.
"Welcome to the behind-the-scenes maneuvering before the Big Sarkari Pay Hike. With a new pay scale for 36 lakh Central government employees, and also pensioners, likely to come into effect from January 1, 2016, the officers and non-gazetted staff of various services have been lobbying hard to get a good deal from the 7th CPC. Unlike in the private sector, the pay hike in government is a once-in-10-years-affair, making every CPC, right from the first that submitted its report in 1947, a hugely powerful agency. No doubt, government employees have to undergo an annual appraisal process called Annual Performance Appraisal Report (APAR), but that exercise is important only for promotion, and not for any pay hike. Government employees do get a regular hike in dearness allowance, a measure meant for offsetting inflationary pressure on their earnings, but at the end of the day it is the CPC that fixes the bureaucrats' pay for 10 long years.
That's precisely why officers and staff of of every service can't afford to ignore the CPC. Constituted in February 2014 under the chairmanship of retired Supreme Court judge Ashok Kumar Mathur, the 7th CPC has an economist and two bureaucrats as its members. Most of the employees' associations have already had at least one round of talks with the Commission. And some are waiting for Round II."
"To be sure, a formula towards pay parity has been the hallmark of the last few pay commissions. A government entry-level peon now gets a monthly pay of Rs 14,000, if dearness allowance is factored in. Similarly, a mid-level government driver's monthly salary, including allowances, is Rs 30,000, at least two times that of his counterpart in a private sector company. And that's why the salary gap between the lowest and highest paid government servant has drastically decreased over the last three decades."
"At present, only three major ministries — railways, external affairs and post — are not headed by IAS but run by their own cadres. Now, IPS wants a new department of internal security headed by a cop and IRS wants a separate direct tax department headed by a taxman.
Will the 7th CPC venture into such nuances? Or will it, like the past few pay commissions have, adopt a simple formula of Multiplier 3 under which the basic salary is hiked by three times or more depending on the economic health of the nation. If that is the case, it won't be too hazardous to make a prediction: A secretary to government of India will get a basic monthly salary (excluding DA) of Rs 2.4 lakh (current basic salary multiplied by three) and the cabinet secretary Rs 2.7 lakh from January 1, 2016. And, yes, perks, DA and other allowances will be extra."
Although hopes are very high from the Modi Government for the fitments and higher salary structure in 7th Pay Commission, but our expectation is that 7th Pay Commission salary for Central and State Government shall be a muted one, as what they did with the bank employees.
The present government in only playing with data and restructuring the data to show the bump up in the economy, which is on the same foot as was left by the UPA II government or we can say even weaker than previous central government. Now we need to look here is that how they will fit in the salary and chart structure of employees of central government in the 7th Pay Commission. It is expected that basic shall be merged and new basic shall be carved out of that but the merging of higher percentage of DA is not expected , as this will result in higher increase in salary as well as higher DA payout.
Hence we can expect a hike in gross salary to the tune to 12-16% from the present or that time gross salary from when the 7th Pay commission shall be expected.
Also there is some what chances that there might be some delay in implementing or finalising the chart and structure of 7th pay commission as in May 2019 election will be held and from 1 January 2016 new pay commission is to be implemented , so it can be delayed 1-2 years and may be finally announced in the year 2017 end or start of 2018 so that the present government can garner vote upon increasing the salary of central government.
( Sources : Authors View and Economic Times Newspaper )
And several state government also implement the pay structure on the similar line of central government.
I think you are estimating it wrong. In case of banks pay revision happens once in 5 years. So even in this worse hike they got around 15 % increase on their gross salary. If it would have happened after 10 years, then this hike would have been around 30 %. In case of central govt employees pay revision happens in 10 years. Hence they can expect around 25-30 percent hike on gross salary.
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