New Delhi: The Seventh Pay Commission is likely to propose minimum basic salary Rs 20,000 of central government employees.

Highly-placed sources in the pay panel said on Monday, “the average increase in basic pay for all government employees will be in the region of 30-40%.”

Currently, the minimum basic salary of central government employees is Rs 7730 with Grade pay excluding dearness and other allowances. After the Seventh pay commission recommendations will come into force, the minimum basic salary will be 20,000 excluding dearness and other allowances.

A competitive minimum pay is important because it determines the the socialism view of the government and the higher number of central government employees are in the minimum pay slabs. Apart from giving good salary to lower grade employees, the pay panel also will have to consider the disparity ratio between its highest and lowest paid employees.

“A joint secretary gets now Rs 128,000 as monthly salary with dearness allowance. I do not expect it to go up to more than Rs 160,000,” a joint secretary-level official of the Central Government said.

The first, second, third, fourth, fifth pay and sixth pay commission recommended the minimum basic salary Rs 35, Rs 80, Rs 260, Rs 950, Rs 3050 and Rs 7730 respectively.

The Commission has already completed discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services and is in the process of finalising its recommendations.

It’s now in the process of finalising its recommendations.

The Seventh Pay Commission is also likely to keep the retirement age of central government employees unchanged at 60 years, although most of the central employees bodies sought to increase the retirement age to 62 years in their memorandum in the pay panel.

“We are not going to either recommend lowering or raising the retirement age. If we lower the age limit, the pension burden will bust the government’s medium-term fiscal targets.” highly-placed sources in the pay panel said.

TST