New Delhi, December 19: Almost 18 months have been passed and the recommendations under the 7th Pay Commission of increasing the minimum monthly pay is still under process. Since last three-years, there is a huge confusion among the Central Government employees regarding the minimum pay hike.
Although, since last two months the Union Government has been continuously promising the employees to raise the fitment factor and salaries as per the recommendations of the 7th Central Pay Commission (CPC). Several media reports have also suggested that there may not be any hike in the minimum basic pay of the Central Government employees.
According to a report, a source within the Finance Ministry said to The Sen Times that there are little chances of the government revising the minimum basic pay of the Central Government employees.
The government staff unions have been eagerly demanding that their minimum pay must be hiked to Rs 26,000 from Rs 18,000. Justice AK Mathur led 7th Pay Commissionhad also demanded an increase in the minimum pay of Central Government employees from Rs 18,000 to Rs 21,000 per month. Meanwhile, Finance Minister Arun Jaitley had also promised to ensure its implementation by the beginning of next year.
A month ago, The Sen Times reported that there is no scope for a change in minimum basic pay as recommended by the 7th Pay Commission and approved by the Union Cabinet.
Earlier in November around 10 employee unions had staged a three-day protest outside the parliament against the delay in minimum wage hike.
Gratuity Ceiling Increased From Rs 10 Lakh To Rs 20 Lakh
After implementation of 7th Pay Commission, the Union Government has increased the ceiling of gratuity amount for employees from Rs 10 lakh to Rs 20 lakh.
Meanwhile, the government on Monday introduced a bill in the Lok Sabha that will allow it to notify the period of maternity leave and gratuity that can be availed by employees under a central law.
The Payment of Gratuity (Amendment) Bill, 2017 was introduced by Labour Minister Santosh Kumar Gangwar in the House, amid continued sloganeering by opposition members and counter-slogans by those of the BJP.
The Payment of Gratuity Act 1972 was enacted to provide for gratuity payment to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments. It is applicable to employees who have completed at least five years of continuous service in an establishment that has ten or more persons.
According to the Statement of Objects and Reasons of the bill, the amendment would allow the central government to notify the maternity leave period for “female employees as deemed to be in continuous service in place of existing twelve weeks”.
The proposal comes against the backdrop of the Maternity Benefit Act (Amendment) Act, 2017 enhancing the maximum maternity leave period to 26 weeks.
“It is therefore proposed to empower the central government to enhance the period of existing twelve weeks to such period as may be notified by it,” the Statement said.
With respect to gratuity, the amount is calculated on the basis of a formula which is 15 days of wages for each year of completed services, subject to the ceiling of Rs 10 lakh. This limit was fixed in 2010.
Generally, the ceiling under the Act follows that of the Central Pay Commission recommendations.
“Therefore, considering the inflation and wage increase even in case of employees engaged in private and public sector, the entitlement of gratuity is also required to be revised for employees who are covered under the Act.
“It has also been proposed to empower the central government to notify the ceiling proposed, instead of amending the said Act, so that the limit can be revised from time to time keeping in view the increase in wage and inflation, and future Pay Commissions,” the Statement said.