Rejecting the pay hike, Bharatiya Mazdoor Sangh (BMS) said government has "disappointed" the employees and it may lead to industrial unrest.
BMS also rejected the Model Shops and Establishments Bill, alleging that by approving it the government has gone back on its word of coming out with a draft bill and getting it approved at the tripartite consultations with labour unions.
The union charged the Centre with increasing disparity between minimum and maximum pay and demanded that there should be a uniform minimum pay of Rs 18,000 across the country, including in the private sector.
"The fitment formula should be 3.42 instead of 2.57 as approved by the government. Similarly, annual increment should be 5 per cent instead of 3 per cent given. The disparity between the minimum and maximum pay has also been increased," BMS general secretary Virjesh Upadhyay said in a statement.
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He said, the Sangh will organise protests across the country in all districts on July 8 and will discuss at its national executive in August the alternative of going on a strike.
The new scales of pay provide for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.E. Secretary, it would go up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary will be Rs 56,100.