Lakhs of central government employees and pensioners are waiting for the formation of the 8th Pay Commission and its recommendations. Meanwhile, the discussion regarding the difference between minimum and maximum basic pay has intensified among the employees. This difference in pay commissions is called Compression Ratio, which tells how much difference there is in the salary of the employee getting the lowest and highest basic salary.
At present, under the 7th Pay Commission, the minimum basic salary is Rs 18,000 and the maximum basic salary is Rs 2.50 lakh per month. In this way the ratio between the two is 1:13.9. Employee organizations believe that this gap is very high and it should be reduced.
The difference was the biggest in the second pay commission
The first pay commission in India was implemented in 1947. However, the highest pay inequality was seen during the Second Pay Commission (1957). At that time the minimum basic salary was Rs 80 and the maximum basic salary was Rs 3,000 per month. Due to this, the compression ratio reached 1:37.5, which is considered to be the highest till date.
After this, the government took steps towards reducing the pay gap and in the third pay commission this ratio came down to 1:17.9. At that time the minimum salary was fixed at Rs 196 and the maximum salary was fixed at Rs 3,500.
Inequality reduced in fourth and fifth pay commission
In the Fourth Pay Commission implemented in 1986, the minimum basic salary was fixed at Rs 750 and the maximum salary was fixed at Rs 8,000. Due to this the pay ratio reduced to 1:10.7.
In the fifth pay commission in 1996, this difference further reduced to 1:10.2. At that time the minimum salary was Rs 2,550 and the maximum salary was Rs 26,000 per month. It is considered to be one of the most balanced tours in terms of pay structure.
The difference between the sixth and seventh pay commission increased again
In the Sixth Pay Commission, the minimum basic salary was Rs 7,000 and the maximum salary was Rs 80,000. With this the pay ratio increased to 1:11.4.
After this, this difference increased further in the 7th Pay Commission. With the minimum basic salary fixed at Rs 18,000 and maximum Rs 2.50 lakh, the compression ratio reached 1:13.9.
What do employees expect from the 8th Pay Commission?
Employee organizations, especially the Federation of National Postal Organizations (FNPO), have demanded the ratio of minimum and maximum pay to 1:8 in the 8th Pay Commission. They argue that this will provide more benefits to lower level employees and will reduce pay inequality.
Experts believe that if the government considers this demand, then the 8th Pay Commission will not be limited to salary hike only, but can also play an important role in reducing the income gap among the employees. In such a situation, everyone’s eyes will be focused on the recommendations of the Commission in the coming times.
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