7th Pay Commission review panel findings not binding on govt, says Finmin

New Delhi: The Finance Ministry is to make clear that government is not bound by the findings of the Empowered Committee of Secretaries on 7th Pay Commission’s recommendations.

The Government will not necessarily be bound by the findings of the Empowered Committee of Secretaries on 7th Pay Commission for central government employees, the Finance Ministry official involved with the process of pay hike told The Sen Times on condition of anonymity.

Amid a growing expectation that the Empowered Committee of Secretaries will recommend 30 per cent hike in salaries of central government employees, that would take the minimum basic monthly pay to Rs 23,500 and the maximum to Rs 3,25,000, while government is set to cut the salary for the higher rungs and increase that for the lower grades to add a populist hue, accordingly source stressed that government would make its own decision.

“The Empowered Committee will make its proposal,” source said. “government will make the decision.”

He said it is vital for government to increase the pay of lower grade employees to enjoy growing popularity in central government employees.

Arun Jatley, Union Finance Minister, will give the government’s formal response to the Empowered Committee of Secretaries, which is chaired by the Cabinet Secretary P K Sinha, after receiving its findings from their another two meetings.

The government may welcome the Empowered Committee report but the cabinet will take its own decision, the source said.

The Prime Minister’s office (PMO) told the Empowered Committee that the salaries of employees in the lower rungs should rise by he highest percentage.

The government decided to give highest percentage salary rise to bottom grades employees and pay parity ratio of mid-level tier officers will be maintained with the bottom grade, source added.

Earlier, all pay commissions had not only recommended for good salary to top central government officials but also considered the disparity ratio between its highest and lowest paid employees.

For instance, in 1948, the salary of the highest paid government official was Rs 2,263 which was 41 times higher than the Rs 55 paid to the lowest earning employee. With subsequent pay commissions the ratio was reduced to about 1:12 in 2006.

The 7th Pay Commission headed by Justice A K Mathur recommended the highest basic salary at Rs 250,000 and the lowest at Rs 18,000 and its increased the pay ratio between the minimum and maximum from existing 1:12 to 1:13.


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