Why we need seventh pay commission in India? Does pay commission always raise the salary of government employees? Can pay commission maintain or reduce the pay scale of government employees?
Indians are strange people. They are the ones who expect everyone to respect the armed forces, pay tributes by sharing photos but cry foul when Pay Commission raises their wages (Defense personnel constitute the maximum proportion of one crore employees and pensioners affected by pay commission. Of the total 51 lakh pensioners, 46% are defense personnel). They want Railways to be the most efficient organization on earth but wouldn't let them raise wages or fares. (Railways Constitute the second highest number of employees affected by pay commission)They expect hikes in their salaries at private firms every year and demand atleast 30% hike when they shift jobs but treat once-in-10 years Pay commission as economic largesse.They are the ones who want babus to function efficiently but worry about inflation while paying them.They talk about inequalities but forget that 89% employees affected by Pay Commission are Group-C workers.I am amazed at the negative public opinion a Pay Commission generates every time. Imagine your employer telling you that you won’t get a hike even once in 10 years because it will lead to inflation in the economy.Pay Commission is definitely necessary and in that context, It must also be noted that this is the lowest hike ever given by a Pay Commision.
What is the expected salary for government employees after 7th pay commission?
Sources have given that 7th pay commission has recommended that the minimum salary will be at Rs.18,000 per month and the maximum salary at Rs.2,25,000 per month. And it has also recommended an average increase of 23.55% hike in the salary and allowances of the central government employees. Within this, the increase in the pay will be 16%, increase in allowances is 63%, and pension would be 24%. You could use this online 7th Pay Commission Pay Scale Calculator to calculate yours.
Is the 7th Pay commission a cruel joke on central govt employees? An auto-rickshaw puller gets more hike than this! Is such a low hike justified?
I am not sure why such a harsh reaction came from you. Yes 7th CPC report was a disappointment for a lot of employees, but I don't think a lot of them think that the commission is pure evil or mentally retarded. I think they submitted a report that wouldn't put too much pressure on the economy. Even though the current increase in total salary is around 25% only, the basic salary has gone up significantly. That means subsequent increase in the DA would see rapid salary rise. Say currently my salary my basic is 26000, a DA hike of 10% would give me around 2600 of hike. Now that basic salary has gone up to something like 70000, the same 10% DA hike would give me a hike of Rs 7000. However, certain clauses in the report have been very annoying. The first one is to reduce the HRA to 24%. That is one aspect of living in cities that cannot be met with the current pay structure. Especially in cities like Mumbai and Bangalore. Another being the mandatory deduction of Rs 5000 (or 2500 for lower levels of pay) for group insurance. It was previously a modest Rs 120. Although a higher coverage is appreciated, it should have been made optional.
7cpc.india.gov.in: What is 7th pay commission? Does it affect India's GDP?
A pay commission is a body formed by government to determine the required amount of increment in the salary of government office bearers. Due to rise in prices and persistence inflation , government in a couple of years constitutes such a body. different sectors may have different pay commissions (i mean to say state government employs may have a different pay commission and different occupations may have different pay commissions recommendation).7th pay commission was constituted to determine the possible and needed rise of salary of all 70 lakh central government employees.When you increase the salary of such a huge chunk of people there is a huge amount of extra spending. let us take an example.The additional expenditure due to implementation of 6th pay commission was 26,035 cr INR over that pension itself accounts for 70,700 cr . so when the 6th pay commission recommendation where implemented expenditure on payment increased from 2.5 % to 6% and (salary plus pension) accounts for 12 % of expenditure of central Gov. As you may have already realized any pay commission increase expenditure of government this increases the fiscal deficit of government and this leads to decrease in the GDP of the country we should also consider the increased income is reinjected into the economy and this causes a rise in demand which causes GDP to grow (please note if the supply is less then demand then it will lead to inflation which is very harmful). But the increased money flow will take time to reflect in real terms in the economy where as the increased fiscal deficit will have bad (comparatively fast) impact (reduction in sovereign rating et al).... other countries apprehensive of investment through FDI ,FPI. Bottomline : The 7th pay commission will probably be implemented from 2016. it should have a stable and positive impact on the economy.please note after the release of the report all the above mentioned figures have changed
Can anyone predict 8th pay commission?
As per Past Precedents the Governments tend to institute new Pay Commissions almost after completion of 10 Years but in 7th CPC it was suggested that there is no need for another pay Commission in future and the Salaries can be Reviewed based on the Pay Scales given by 7th CPC can be Reused using to Dr. Akroyd Formula. On Lay man’s Terms THERE WOULD BE NO PAY COMMISSION’S IN FUTURE AND THE SALARIES WILL BE REVISED ON INFLATION WHICH AS PER GOVT. RECORDS IS ON HISTORIC LOW.7th CPC: If Not Pay Commission, What Will be New Formula For Salary Hike? 7th Pay Commission has recommended for no pay commissions in future - Govt. Employees India
7cpc.india.gov.in: What is the 7th pay commission hike in salary of PSU employees?
Salary will hike by 30-40%. Because in 7th pay revision , your basic will be doubled by merging your DA in basic, but then DA come down to 0%. So then this basic pay will only increase your perks and that will be reflected in your salary. Example : In basic of 24900/- the gross salary of employee is 55k to 60k (depends on perks of that organization). But after 7th pay revision this same basic will be doubled(approx). Then salary will be calculated as follows. (24900*2)(basic)+0(DA)+24900*2*45%(45% perks) = 75k (approx). So this new salary is around 30% more of old salary.Edit : The above calculation is correct considering govt does not give any extra hike. As the 7th pay commission of central goverment has already given fitment factor of 2.57,means they have given extra 30% hike after merging DA with basic. Suppose a central govt employee has basic of 21000 (15600+5400), then after 7th pay his basic will be 21k*2.57=53900. If we expect same additional hike of 30% for PSU as well then their fitment factor will come near around 2.5. Now suppose someone join psu at basic of 24900 /- , then after 7th pay we can expect his basic as 24900 * 2.5 = 62250/-. Most of the Psu gives 45-50% perks. So after adding perks the gross salary will come around , 62250 * 1.45= 90k.
Will the 7th pay commission affect the private sector? If yes, how?
The 7th Pay commission would definitely affect the private sector. Here’s how.Firstly, Inflation: For financing this raise, government will have to spend a whopping amount of money. When such larges amounts are injected into the systems, inflation is bound to increase a lot. There’s difference when government spends money on investment projects, like building infra, recruiting teachers etc and when government spends money on consumption purpose. This money is spend on consumption. And that is definitely going to cause inflation. Increased liquidity, No increase in goods & services, increasing inflation. It’s the classic “more money chasing the same goods”.2. Salary hike in private sector likely: This is likely not a direct result but an indirect dynamics. Many private sector companies co-relate their salary with the one that is being currently paid by the government. So, there should be some rise. But this change will be both sporadic & spatially varied. But for now, private sector employees are left a little poor than their government counterparts.3. Private sector boom: With increased salary, demand for consumer goods likely going to get higher. So, overall this should show a positive trend to industrial & service sector growth. Meaning, higher car sales, people want to by new flats, etc.Moral of story for private sector employees: Wait for your hike. Until that comes, patiently suck your thumbs. Currently it’s Laddu time for Sarkari people."Press conference mein sarkari karmiyon ko Laddu khilate hue Jaitley"
What will my salary after 7th pay commission if grade pay is 1900?
Thanks for A-2-A.Your salary under 7th Central Pay Commission will depend upon your basic pay (i.e Pay in pay bank plus grade pay) in pre-revised pay structure. Please follow the following steps to fix your pay in new pay structure:-Image Source: 7th Central Pay Commission Report.1. Identify your basic pay (i.e Pay in pay bank plus grade pay ie 1900) drawn by you as on 31.12.2015. Let this figure be ‘X’.2. Multiply ‘X’ with 2.57, round off to the nearest rupee, and obtain result is ‘Y’.3. The figure so arrived at, ie ‘Y’ or the next higher figure closest to it in the level – 2 of new pay matrix. In case the value of ‘Y’ is less than the starting pay of the level, then the pay will be equal to the starting pay of Level – 2.Illustration:For example an employee A is presently drawing Basic Pay of ₹ 9,040 (Pay in the Pay Band ₹ 7,140 and Grade Pay ₹ 1900). After multiplying ₹ 9,040 with 2.57, a figure of ₹ 23,232.80 is arrived at. This is rounded off to ₹ 23,233.The level corresponding to Grade Pay is 2, as may be seen from above Table, which gives full correspondence between existing Grade Pay and the new Levels being proposed.In this column for level 2, the figure closest to ₹ 23,233 is ₹ 23,800.Hence the pay of the employee A will be fixed at ₹ 23,800 in level 2 in the new pay matrix.Source: 7th Central Pay Commission Report (http://finmin.nic.in/7cpc/7cpc_r...)
How will salaries be affected by the 7th Pay Commission?
Introducing the 7th Pay CommissionThe pay commission is the advisory body set up by the Indian government in order to provide advice and recommendations about the employee’s structure of salary. The Pay commissions have been set up since 1947, and this is the 7th edition which would provide all-round assistance regarding the salary of the military and civil personnel of India.The head-quarter of the commission is located in Delhi, and they work in for the alterations in about 18 months post the recommendations have been made.Formation of the commissionThe 7th pay commission was announced by the then Finance Minister of India, P. Chidambaram which was then followed by the approval of Prime Minister. Under the supervision of Justice, A.K Mathur, the latest submission of the report was done in 2016, which suggested about a hike of 23.55% in both the allowances and the salaries of the people employed by the government.The present scenario is that the Indian President, Mr. Ram Nath Kovind has agreed to the suggestion of increasing the monthly salary of the Chief justice of India from Rs. 1 lakh per month to Rs. 2.80 per month along with recommending an increase in the salaries of the high court and Supreme Court judges as well.To know more read this: Top 7 Facts About the 7th Pay Commission for Central Government Employees in India