7th pay commission: This is what pay hike demand by central government employees is all about

On 7th pay commission recommendation on salaries, the report says: "The Commission has designed the pay structure in such a manner that the pay progression recognises the importance of vertical relativities and also assigns a reasonable basis to such progression. This has been done by assigning a uniform fitment factor of 2.57."

7th pay commission: This is what pay hike demand by central government employees is all about
7th pay commission: Central government employees have been demanding a hike in pay based on a calculation that is not based on what the committee wanted in its report. Image source: Reuters
By ZeeBiz WebTeam
Updated: Fri, Jul 20, 2018
08:11 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
7th Pay Commission: Government Employees' unions join forces to push for this big common demand 7th Pay Commission: Government Employees' unions join forces to push for this big common demand
7th Pay Commission latest news: These central government employees win big! Government accepts pension to pay hike demands 7th Pay Commission latest news: These central government employees win big! Government accepts pension to pay hike demands
7th Pay Commission: Central government employees, invest 10% of your basic salary plus DA in NPS, become crorepati 7th Pay Commission: Central government employees, invest 10% of your basic salary plus DA in NPS, become crorepati
7th Pay Commission: What central government employees can look forward to ahead of Lok Sabha elections now 7th Pay Commission: What central government employees can look forward to ahead of Lok Sabha elections now
7th Pay Commission: These pensioners not happy with their arrears, seek govt action 7th Pay Commission: These pensioners not happy with their arrears, seek govt action

7th pay commission: Central government employees have been demanding a hike in pay based on a calculation that is not based on what the committee wanted in its report but much more than that citing rising expenses due to soaring inflation hitting every aspect of life including education for children and other necessities. 

On this overarching issue, the panel in the 7th Pay commission report wrote a short and succinct explanation: "One recurrent theme in the representations of various associations relates to 'equity' or 'Equal Pay for Equal Work.' Ideally, the remuneration package should establish horizontal equity: employees should feel that their pay is comparable with the remuneration structure of similarly placed positions outside their organization. The employees should also feel that the pay structure shows linear progression pattern and thus the notion of vertical equity is also maintained."

On 7th pay commission fitment factor recommendation on salaries, the report says: "The Commission has designed the pay structure in such a manner that the pay progression recognises the importance of vertical relativities and also assigns a reasonable basis to such progression. This has been done by assigning a uniform fitment factor of 2.57."

The reason for going for a Uniform Fitment factor for central government employees was due to the fitment recommended by the 6th CPC in the form of grade pay. It led to some discrepancies and differentiations as any inconsistency in the computation of grade pay or in the spacing between pay bands has a direct bearing on the quantum of fitment benefit. After these issues were raised, calls were made by a majority of stakeholders for a single fitment factor which should be uniformly applied for all employees.  

While there is no complaint about the system per se, objections have been raised about the actual amount that has been cleared. Fitment factor of 2.57 times was recommended by the 7th pay commission. The report said, "After considering all relevant factors the Commission is of the view that the minimum pay in government recommended at Rs 18,000 per month."

It reasoned that the recommendation would lead to rationalization of pay levels so that the minimum pay at each level will be the entry pay for direct recruits for those levels. Each level has been placed equidistantly.  

Watch this Zee Business video

The demand by the central government employees has some history behind it. The jump in minimum pay to Rs 26,000 based on a fitment factor of 3.68 times and not to Rs 18,000 based on 2.57 times was made as far back as then and was before the panel. With inflation showing no sign of abating, the demand is being highlighted more and more by the staff.

 

By continuing to use the site, you agree to the use of cookies. You can find out more by clicking this link

Close