Seventh pay commission: A damp squib?
As the
NDA government, aims for a double-digit growth trajectory of the Indian
economy, a pay hike to almost one crore government employees and
pensioners can come handy, as it will push demand. The 7th central pay
commission (CPC), submitted its report earlier this year, and finance
minister Arun Jaitley welcomed it, terming it ‘historic’. The cabinet
accepted the recommendations last month. However, employees are not
happy, and have announced plans for a protest strike.
The
recommendations by the justice Ashok Kumar Mathur commission for
providing a hike of an average 16 percent increase in pay, 63 percent in
allowances and 24 percent increase in pension have failed to create
excitement.
Officers at higher levels getting better increments are
worried about the rising inflation. Moreover, they feel their salaries
are not at par with those in the private sector. Meanwhile, the low-rung
employees and middle-level officers are unhappy with the wages.
Therefore,
soon after the release of the pay commission report, employee unions
threatened to go on a nation-wide strike on July 11. Questions have been
raised on the calculation of the minimum wage, which as per the latest
CPC is Rs 18,000 per month as compared to Rs 7,000 earlier. Almost 33
lakh employees have demanded the minimum wage be increased to Rs 26,000.
Undoubtedly, the hike is the lowest in the seven decades.
The
strike, though, has been deferred for four months after home minister
Rajnath Singh assured them of constituting a high-level committee to
look into the demands. A sense of resentment, however, looms over the
central government employees, especially among the lower rung.
Jaitley
though maintains that the government employees’ salary is higher than
the private sector after implementation of the 7th CPC.
“We have
semi-skilled workers while private sectors have unskilled labour. Trying
to establish the co-relation between the two is not required,” says KKN
Kutty, president, Confederation of Central Government Employees and
Workers.
“A grade four employee working in a government job hasn’t
received enough raise. To their current salary a mere amount of Rs
2,500-3,000 will be added,” says Kutty, who works in the income tax
department.
“The calculation of the wages is determined on the
basis of the price of 14 commodities, primarily including food items
like grains and pulses. In the 7th CPC the price of those commodities
has been taken lower than the actual market price.
“The raise is not as it should be,” says Kutty, citing it as a reason for resentment.
A
pay commission comes after every 10 years. During their representations
before the 7th CPC, Kutty and other central government employees
suggested merging dearness allowance (DA) with basic pay, which could
give financial benefits to employees. “This was, however, not
considered. When we raised the issue, it was said that the commission
had already commenced with the work,” he says.
The report prepared
on the basis of a study by the Indian Institute of
Management-Ahmedabad, calculated the wages by comparing them with the
same in the private sector.
“Priority has been given to the
corporates in defining our pay scale. It cannot be a prerequisite for
our pay scale. The government should have defined our pay scale on the
basis of the Aykroyd formula, which reflects the basic average cost of
living in the country,” suggests Shiv Gopal Mishra, convener of National
Joint Council of Action (NJCA), a platform of several employees unions.
Mishra,
who is also the general secretary of All India Railwaymen’s Federation,
however, clarifies that 7th CPC is a positive move to boost the
economy. “People will start investing in consumer goods like automobiles
and electronics, overall pushing the economy,” he says.
Apparently,
the CPC is consumer-sentiment driven. It leads to increase in
consumption and savings. “When people get more money, it comes back in
the system in the form of taxation. Savings will increase… spending will
go up,” Arun Jaitley had said while accepting the 7th CPC report.
“There
is no sense of excitement among our officers’ group. Though the
government has been citing that it will boost economy, we are worried it
will raise the inflation rate,” says a senior official in the ministry
of agriculture on condition of anonymity.
The CPC is likely to
impact the inflation rate. It stood at 5.77 percent in early July as
experts warned of a spike in coming months. Still, a good monsoon and
improved economy can cushion the inflationary effects.
But civil servants in higher ranks are worried about it.
“The
rising consumer demand will not neutralise the inflation rate instead
it will stoke the consumer price index. So, until the next pay
commission, which will come after 10 years, we will struggle in dealing
with the inflation with our current pay package. Inflation eats away
minimum wage each year. Therefore, employees at the lower grades will be
at the receiving end,” says the senior official.
Vijendra, a
grade four employee in the horticulture department of Delhi Development
Authority (DDA), says, “I am not happy with the seventh pay commission.
Last time we received a hike of almost 50 percent and this year it is
somewhere between 14 to 25 percent.”
Meanwhile, the CPC in its
report has mentioned that it has attempted to provide wages commensurate
with a comfortable living, and it aims to promote efficiency,
accountability and responsibility in the work culture.
Vijendra,
however, wonders if it possible to create such an environment in the
years to come. Clearly, he is hinting that high salary does not
guarantee better government services in the coming years.
“The government says they will curb corruption. Is it possible?” Vijendra asks sarcastically.
Via
Governance Now
