April 28, 2017

7th Pay Commission – Reworking after Premium Packaging

Finance Minister

Government announced the much awaited 7th Pay Commission. The employees got nothing to cheer about. Packaging selling works well for selling a product or a service by increasing the perceived value but it will never work when it comes to telling your existing employees that there is a substantial hike in salary. From INR 7000 to INR 17,000.

Lets do a basic comparison of Old and New Pay scale:

Pay Scale

Basis Grade Pay DA

125% of Basic and Grade Pay

Total 6th Pay Commission Total 7th Pay Commission as announced Hike in 10 Years In absolute term Rs.

% Hike in 10 years

5200 – 20200

5200 1800 8750 15750 18000 2250

        14.29 %

Citizens are simple and straight forward. As long as the government had to announce the pay hike it was fine. The very fact that government positioned 7th Pay Commission hike was not in good taste.

If someone in the government disagrees with this article, they need to present old and new pay slip of a employee. The government needs to understand that common people don’t understand financial engineering when someone says in a press conference or in parliament ” because of increase in salary the exchequer has additional burden of ……”.

At ground level talk “before 7th pay commission my take home was____ After 7th pay commission my take home is____”.

The Inflation rate prevailing in India is approx 7.5% therefore the hike in pay scale will be benefited for maximum 2 years only. The next 8th pay commission will deliver the hike in 2026.

For now the July 11 strike is postponed. Finance Minister will have to burn mid night oil. 33 lacs central government employees is a big number spread across the country to build a perception.

While all this is happening the employees of private sector are smiling and move ahead with everyday life. It’s perform or perish for them.

Written by Shri C.S. Jagawat 

Pic Credit: Wiki

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