30% salary hike confirmed in 7th Pay Commission for CG Employees
"The wages of public sector bank employees are revised once every five years. The recent 10th Bipartite wage agreement gave them an increase of 15%."
United Forum of Bank Unions (UFBU) had initially put forth a demand of 21% wage hike. It was only after an extensive series of negotiations that the Indian Bank Association agreed to settle for 15%.
For Central Government Employees, once every ten years, a high level committee is constituted by Central Government to revise the pay and allowances. The commission will examine pay structure, concessions and facilities/benefits as well as retirement benefits of Central Staff based on Terms of reference given to them. The Commission has to submit its recommendations within 18 months of the date of its constitution.
All the employees' Trade unions, Associations and Federations are given a chance to meet the committee and present their demands and expectations in the form of memorandums. All these stages have been completed. The pay commission is expected to submit its report to the central government this month.
The prime question which comes naturally in every one's mind is - how much increase the Central Government employees will get?
In our point of view, all Central employees can surely get a uniform 30% increase in salaries with effect from 01.01.2016, irrespective of ranks and length of service.
Let us assume that an employee who had been recruited after the implementation of the 6th Pay Commission, draws a salary of, on an average, Rs.30,000, including all allowances. Then, after the implementation of 7th Pay Commission, his salary will increase by 30%, and be Rs.39,000.
Everybody, including the NC JCM and the news websites, is expecting maximum hike. That is entirely their discretion. They would have a reason too - simple reason is 'if you want to get what you want then you should ask more than thatí. They are hoping for a 60% to 70% increase'.
This is where most misconceptions occur. Even English newspapers are no exceptions, and have misquoted the numbers.
"The minimum basic pay, as decided by the 6th Pay Commission, was Rs.7000. The basic salary of the lowest rank employee, who was recruited after the implementation of the 6th Pay Commission, was Rs.7000 per month, plus allowances. Almost ten years later, the basic pay of the same lowest ranked employee who was recruited after July 2015, is Rs.15330 (7000 + 119% DA) and allowances. The Dearness Allowance, which is given twice a year, began at zero and has increased to 119% in the past 10 .