7th Pay Commission salary windfall cleared by Cabinet; Sarkari babus wanted much more

By: | Published: June 29, 2016 6:40 PM

7th Pay Commission award was cleared by the Union Cabinet today. The approval is likely to see a higher increase in the basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 10 mn government employees and pensioners.

The Committee of Secretaries under the chairmanship of the Cabinet Secretary, reviewed the recommendations and suggested a flat 23.5 % increase in wages and salaries. (Thinkstock)The Committee of Secretaries under the chairmanship of the Cabinet Secretary, reviewed the recommendations and suggested a flat 23.5 % increase in wages and salaries. (Thinkstock)

7th Pay Commission award was cleared by the Union Cabinet today. The approval is likely to see a higher increase in the basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 10 mn government employees and pensioners. The Committee of Secretaries under the chairmanship of the Cabinet Secretary, reviewed the recommendations and suggested a flat 23.5 % increase in wages and salaries. Last year in November, the pay panel recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. While this would be celebration time for the bureaucrats and pensioners as the hike is substantial, FE Online’s Sakshi Prashar approached a number of those affected and took their views – needless to say, not everyone is happy about it. However, employees did not want to divulge their names. Here are the excerpts:

A senior central govt employee posted in New Delhi said, “Though it looks a handsome increase in the pay of a government sector, but fact of the matter is that this increase is perhaps the lowest ever increase in the salary of central government employees during the successive CPCs. Moreover, a big chunk of this increase in salary will go to cover the enhanced insurance premium that the central government employees now have to pay. The contribution to medical coverage under the CGH Scheme will also increased manifold. As such the actual take home salary is not going to increase as much as it is advertised and misconceived in the private sector. ”

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While accepting what has been granted, another central govt employee, (who would not like to divulge his full name) Rohit said, “The acceptance of the recommendations of the pay commission is a positive step, but I expected something more from the government given the fact that inflation is rising at a high speed, the employees at the lower level should be given something more.”

Calling it a decision favorable for economy, another senior Central govt employee said, “About 30-35 % increase in pay package would have had a more positive impact and this would have created an immediate demand surge in the market. From the point of view of the economy, this may give a little fillip to the demand of commodities in the market and can cause a spiral effect in production. As such any fear of slump in will be avoided for the next one year.”

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