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Friday, August 1, 2014

BPMS Memorandum to 7th Central Pay Commission Minimum-Maximum Ratio

BPMS Memorandum to 7th Central Pay Commission

Minimum-Maximum Ratio

Considering the importance of disparity in ratio between the minimum and maximum pay the Fourth Central Pay Commission opined (Para 7.58) that an effort should be made not only to reduce the number of pay scales, but also to reduce the disparity between minimum and maximum scales of pay. The Fifth CPC had retained the minimum: maximum salary ratio of 1:10.7 inherent in the Fourth CPC pay scales even though the ratio had become 1:8 in 1996 on account of unequal rates of Dearness Allowance neutralization where the highest category was allowed neutralization at 65%.

Hence, it is our considered opinion that the ratio between the minimum & maximum Salary should be of 1:7.
In case of Cabinet Secretary the maximum salary should be 07 times than a lowest paid employee since the Cabinet Secretary, as the overall CEO of the governing system, have to take and ensure implementation of several policy decisions and his accountability is much more than anyone else.
Hence, the Maximum Basic Pay will be 35000 x 7 = Rs. 2,45000.00 (Rupees Two Lakh Forty Five Thousand) for Cabinet Secretary of India.
The Figure of maximum and minimum salaries would give an arithmetical relationship between the new basic pay and the unrevised basic pay. Normally, the application of such a broad arithmetical ratio may be used for all the existing scales but due to merger of some grade pays or rationalization of pre-revised grade pay this may be re-looked by keeping in the mind the vertical and horizontal relativities of the cadre. It has to be kept in the mind that Pay Band & Grade Pay may not always be enough to fit in every kind or category of employment so a suitable system of “Special pay" or allowances can take care of such cases.
Nevertheless, it is once again reiterated that under no circumstances, should the ratio between minimum-maximum pay exceed 1:7.


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