Tag Archives: 7th pay commission

Most important demand is that of the CG employees is the minimum wage and fitment formula 

23 Thursday Jun 2016

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“The formal announcement by the of the 7th CPC acceptance is likely to be made by the Government just before the 11th July strike by the CG employees indicating the actual minimum wage and fitment formula.”

7th CPC latest

Comrades,

The empowered committee of Secretaries headed by the Cabinet Secretary had discussion from past five months on the charter of demands raised by the staff side, The finance ministry is working out the financial implications arising out of the improved recommendations of the 7th CPC especially on the minimum wage and fitment formula being improved, granting two increment on promotion and having annual increment on 1st Jan and 1st July instead of just on 1st July. This will benefit a lot of persons on promotion. The other aspect is considering grant of advances, which the 7th CPC has recommended for abolition.

The formal announcement by the of the 7th CPC acceptance is likely to be made by the Government just before the 11th July strike by the CG employees indicating the actual minimum wage and fitment formula.

The cabinet Secretary will present the view of the empowered committee of Secretaries before the Union Cabinet meeting based upon the principle adopted in actual calculation of the minimum wage and fitment formula. The 7th CPC had adopted the Dr Aykroyd formula minimum wage is calculated on the basis of the 15th ILC norms. But erred in many aspects for example the average of prices of last 12 months was taken, The housing weight age , education weight age etc . The prices of essential items are rising from past many years, even in last six months the retail inflation is rising above 5.4%.

Secondly the prices quoted by the GOVERNMENT OF INDIA MINISTRY OF LABOUR & EMPLOYMENT LABOUR BUREAU CLEREMONV, SHIMLAHttp://Labourbureaunew.Gov.In/ , the Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi & the retail market prices are varying .

If we calculate the minimum wage based upon the LABOUR & EMPLOYMENT LABOUR BUREAU taking prices as on 1st July 2015 the minimum wage works out to Rs 21,000 / and fitment formula works to 3.00. This will result in 34% wage hike without allowances.

If we calculate the minimum wage based upon the Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi taking prices as on 1st July 2015 the minimum wage works out to Rs 23,000 / and fitment formula works to 3.30. This will result in 50% wage hike without allowances.

If we calculate the minimum wage based upon the retail market taking prices as on 1st July 2015 the minimum wage works out to Rs 28,000 / and fitment formula works to 4.00. This will result in 70% wage hike without allowances.

The most important demand is that of the CG employees is the minimum wage and fitment formula.

The Staff side had demand of minimum wage of Rs 26000/- & fitment formula of 3.71. Against this the 7th CPC had recommended minimum wage of Rs 18000/- & fitment formula of 2.57. The 7th CPC recommendations has provided only at 14% wage hike at Group “C” level it is only ranging from Rs 2240/- to Rs 3500/- increase per month, and at Group “B” level ranging from Rs 4000/- to Rs 6500/- increase per month. After deductions & income tax the net increase will be just from Rs 500/- to Rs 3000/- only.

This increase is lowest by any pay commission, hence vast changes are required as the prices of essential commodities have gone up and also the inflation rate has gone up.

Comrades it is the time to struggle, we should educate the members and prepare for struggle, so that we should get at least 50 % wage hike without allowances, as allowances are not taken into pension benefit.

Only struggle will get us benefit. Please don’t believe on rumours. Now it is now or never.

Comradely yours

(P.S.Prasad)
General Secretary

COC Karnataka

Source: www.karnatakacoc.blogspot.in

Pensioners Samaj appeals Finance Minister to redress the Pensioners issues which 7th CPC failed to address

28 Saturday Nov 2015

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BHARAT PENSIONERS’ SAMAJ
(All India Federation of Pensioner’s Associations)
New Delhi -110014

SG/BPS/ 10/2015
New Delhi-Dt. 25.11.15

To
Dear Shri Arun Jaitleyji.
Honourable Minister of Finance
Government of India

Subject : 7th Central Pay Commission report released on 19.11.2015

Sir.

With deep resentment and pain BHARAT PENSIONERS SAMAJ( BPS) the oldest & the largest Federation of Indian pensioners which is a conglomerate of over 650 Pensioners Associations appeal to you to redress the following issues which 7th CPC failed address:

I. Ratio between minimum and maximum: Instead of reducing it is raised which is against the preamble of the Constitution of Indian Republic.

2. Minimum salary has been intentionally calculated to be lower to keep common fitment factor low.Counting employees’ wife as 0.80 unit is gender biase and is totally unjustified. Quantities & rates taken for the items in basket are unrealistic for example Rs 524.07 per month is provided Even the lowest category of Govt. accommodation is not available at this rate. Similarly rate of ‘Dal’ is taken to be 97.84 per Kg. No ‘ Dal‘ is or was available in the market at this rate. Quantity of Milk is taken to be 200 ml per unit per day which is too little for a vegetarian rate of Milk is taken to be Rs 37.40 per Kg which is lower than market rate.

3. According to 7th CPC 2.57 fitment factor is for all employees. But, in fact. 2.81 fitment has been given at Secy level. This is robbing Peter to pay Paul, violative of CPC own recommendation and that of Article l4 of the constitution of India. 2.81 fitment benefit should be provided to all employee without any discrimination.

4. Raising percentage of pension based on sustenance: Analysis given by CPC is silent on sustenance this is unjustified rejection.

5.OROP recommended by 7th CPC for all. But through the jugglery of pay matrix, for promotee officers and group‘C.‘ it will end up only in modified parity. This needs rectification to ensure absolute parity for all.

6. Additional pension at 75yrs of age is denied only because Defence Ministry did not agree this is rather absurd. If Defence Ministry does not want to have it. let them not have it. Why make others suffer on this account?

7. Medical facilities : While the Commission’s recommendations regarding merging of all postal dispensaries with CGHS dispensaries and inclusion of non CGHS covered postal Pensioners are
welcome.

However, its recommendations regarding Health insurance for pensioners do not suit existing pensioners on account of no coverage of existing disease without lock-in period, no provision of OPD facility , payment of premium and less amount of coverage.

Under signed, wish to draw your kind attention to para 9.5.18 (iii) of the 7th CPC and request you to create without delay a combined entity of CGHS, ECHS-RELHS which in terms of 7th CPC would result in a very strong network of health facilities for the Central Government employees/pensioners across the length and breadth of the country.

8.Scraping of New Pension scheme(NPS) :It has come out through 7th CPC report that though NPS was introduced more than a decade back Govt; to date could not firm up rules in this regard. With the result over 300000 employee recruited after 2004 may not have enough funds in their accounts at retirement to ensure financial security. Center and state Govt’s share of contribution is insufficient and these governments are not depositing their contribution in time, investments are subjected to service tax & withdrawals are taxable under Income Tax with the result there would not be enough money for reasonable post retirement financial security. Due to ever rising inflation, this situation will go on worsening year by year and will go out of hand by the time of retirement of the beneficiary. This is more than sufficient reason to scrap NPS & to revert to pre 2004 defined benefit Pension Scheme.

Thanking you in anticipation.

sd/-
-S.C.Maheshwari
Secy. General Bharat Pensioners Samaj

Serious resentment among employees against 7th Pay Commission’s retrograde recommendations : NFIR

28 Saturday Nov 2015

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National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055

Affiliated to :Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)

No.IV/NFIR/7th CPC/CORRES (MoF)

Dated: 23/11/2015

Shri Arun Jaitley,
Hon’ble Finance Minister,
134/North Block,
New Delhi

Respected Sir,

Sub: Seventh Central Pay Commission’s Report — serious resentment among employees against retrograde recommendations — reg.

There is widespread disappointment and resentment among all sections of Central Government employees against the retrograde recommendations of 7th Central Pay Commission.

In this connection, the National Federation of Indian Railwaymen (NFIR) places below core recommendations briefly which have generated unhappiness and anger among the employees in Railways as well as those in other departments of the Central Government:-

I. Minimum salary:

The Pay Commission has illogically recommended the minimum salary Rs.18,000/- p.m. We have explained our case through JCM Staff Side memorandum and also during the meetings with the Pay Commission that the minimum wage of the employees needs to be fixed at Rs. 26,000/- p.m. While the Pay Commission has briefly discussed our proposal in Chapter 4.2 of its report, ‘Determination of Minimum Pay’ in para 4.2.5 & 4.2.6 (at Page 61), it is sad to state that the 7th CPC has not only mutilated Dr.Aykroyd formula for determination of minimum wages but also changed Hon’ble Supreme Court’s decision wherein 25% to be added to the salary computed towards meeting the expenses on marriage, recreation, festivals, health, education etc. The housing component has also been reduced to 3%, with the aim to peg the minimum salary at Rs.18,000/- p.m.

II.Fitment formula:

(a) The multiplying factor 2.57 recommended by the 7th Central Pay Commission, vide para 5.1.27 (Page 77) of the Report, is totally illogical. Kind attention is invited to the pay increase granted pursuant to implementation of 5th & 6th Central Pay Commissions in the years 1996 & 2006 as placed below:-

Vth CPC – 40% hike with effect from 01/01/1996.
VIth CPC – over 32% hike (1.86 multiplying factor) w.e.f.01/01/2006

(b) The VIIth CPC has also admitted in its report vide Chapter 4.2, para 4.2.9 (Page 63) the percentage increase of pay in the past as below:-

Vth CPC 31% w.e.f. 01/01/1996
VIth CPC 54% w.e.f. 01/01/2006
VIIth CPC 14.3% (since recommended)

The above facts, reveal that the VIIth Pay Commission has given perverse recommendation on “Minimum Wage” and “fitment formula”, which has led to all – round dissatisfaction among employees.

III. Abolition of Allowances:

The pay Commission has recommended for abolition of various allowances without looking into the background and justification on which those allowances were granted initially.

IV. House Rent Allowance:

Reduction of House Rent Allowance from the present ceiling of 30,20 & 10 to 24, 16 & 8 percent for Classes X,Y & Z cities is not proper. The house rents are very exorbitant in cities and small towns.

The Railway employees are extremely unhappy over non-grant of improved pay scales inspite of the fact that their duties are unique, complex and hazardous.

NFIR, therefore, requests the Government to take steps to modify the recommendations suitably for enhancing the minimum wage and fitment formula through discussions with staff side Federations and see that the atmosphere of confrontation is avoided. There are also many anomalies and aberrations in the report which are required to be dealt through discussions for rectification.

Yours Sincerely,
(Dr.M.Raghavaiah)
General Secretary

Central Government Employees are totally upset, dissatisfied and disappointed

22 Sunday Nov 2015

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Central Government Employees are totally upset, dissatisfied and disappointed over the major recommendations of the 7th CPC – NJCA Press Statement

National Joint Council of Action
4, State Entry Road, New Delhi — 110055

No.NC-JCm-2015/NJCA

November 20 , 2015

Central Government Employees are totally disappointed with the adverse recommendations of the Seventh Central Pay Commission

Seventh Central Pay Commission while giving a bonanza to the higher level officers has completely ignored the low paid employees

Central Government Employees to observe “BLACK DAY” by holding massive demonstration, wearing black badges, all over the country on 27th November 2015 to protest against the retrograde recommendations of the 7th CPC

NJCA appeals to the Central Government Employees to be prepared for more serious action programmes

The National Joint Council of Action of Central Government Employees in its meeting held on 20th November 2015 has unanimously resolved to fight back against the adverse and retrograde recommendation of the 7th CPC. The Central Government Employees are totally disappointed and dissatisfied with the recommendations of the 7th CPC submitted to the Government on 19th November 2015. While the wage revision for the employees of PSUs and Banks etc takes place once in five years the Central Government Employees have to wait for a long period of 10 years for wage revision.

The demand of the Staff Side of the National Council JCM to fix the minimum pay to that of Rs. 26,000/- has been completely rejected by the 7th CPC and has arbitrarily fixed the minimum pay as Rs. 18000/, The 7th CPC has mutilated the formula for fixing the minimum wage. The minimum wage recommended amounts to a meagre increase of Rs. 2250 from the existing minimum pay of Rs. 7000 + 8750 (125 % DA as on 1.1.2016). From this minimum pay of Rs, 18000/-, as per the recommendation of the 7th CPC itself Rs. 1500/- will be recovered for CGEIGS and 10 % i. e Rs.1800/- will be recovered towards New Pension Scheme from the employees recruited after 1.1.2004 and 6% towards GPF contribution from the employees recruited prior to 1.1.2004 resulting in minus benefit for the low paid employees.

The public at large is misled by the statement that a hike of Rs 23.5% is granted to Central Government employees where as the actual increase is only 14.29%. While the minimum wage is fixed as Rs. 18000/- the Secretary level officers are given a huge hike of Rs. 2,25,000 and the Cabinet Secretary’s salary is fixed as Rs. 2,50,000. Whereas the demand of the National Council — JCM (Staff Side) that the ratio between minimum pay and the maximum pay should be not more than 1: 8, the 7th CPC has kept the ratio as 1: 13.8. while the National Council — JCM has demanded for reducing and rationalising the number of pay scales the 7th CPC rejected the same and retained all the 18 pay scales.

The House Rent Allowance has been reduced from the existing 30% to 24%, 20% to 16% and 10% to 8%. More over the 7th CPC has recommended for abolition of various allowances like small family allowance and advances like festival advance etc. Instead of removing the existing anomalies in the MACP Scheme, the 7th CPC has introduced examination for granting MACP. The 7th CPC has refused to make any recommendations against the New Pension Scheme. For the 2114 spell of 365 days child care leave for women employees the leave wages will be reduced to 80%.

In a nutshell the Central Government Employees are totally upset, dissatisfied and disappointed over the major recommendations of the 7th CPC. Therefore the NJCA has decided to observe a massive demonstration on 27th November 2015 against the adverse recommendation of the 7th CPC. All the constituent organizations are requested to advise their affiliates to observe in an effective manner and also to issue similar press statements in their respective states / center. The NJCA will meet on 8th December 2015 to finalise the views on the various recommendation of the 7th CPC and to forward the same to the Government for a negotiated settlement.

The NJCA further appeals to the Central Government employees to be prepared to carry forward the struggle till a negotiated settlement is reached.

Yours Sincerely

(Shiva Gopal Mishra)
Convener

MOST DISAPPOINTING AND RETROGRADE RECOMMENDATIONS – CONFEDERATION

22 Sunday Nov 2015

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7TH PAY COMMISSION REPORT SUBMITTED TO GOVERNMENT OF INDIA ON 19.11.2015

MOST DISAPPOINTING AND RETROGRADE RECOMMENDATIONS

WORST RECOMMENDATIONS EVER MADE BY ANY PREVIOUS PAY COMMISSION

ONLY 14.29% INCREASE IN PAY AFTER 10 YEARS
(EQUAL TO TWO DA INSTALLMENTS)!!!

50 LAKHS CENTRAL GOVERNMENT EMPLOYEES AND DEFENCE PERSONNEL CHEATED & DECEIVED

HOLD PROTEST DEMONSTRATIONS ALL OVER THE COUNTRY

NJCA LEADERS MEETING AT DELHI ON 20.11.2015 AT 11 AM, WILL DECIDE THE FUTURE COURSE OF ACTION

IMPORTANT RECOMMENDATIONS

1. DATD OF EFFECT – 01.01.2016
JCM Staff Side demand – 01.01.2014 – Rejected

2. MINIMUM PAY – 18000
JCM (SS) demand – 26000 – Rejected
Dr. Aykroyd Formula of 15th Indian Labour Conference for calculation of Minimum wage distorted by 7th CPC to deny the eligible minimum pay.

3. FITMENT FORMULA – 2.57 TIMES
JCM (SS) demand – multiplication factor 3.7 (26000/7000)

4. FIXATION ON PROMOTION – NO CHANGE – ONLY ONE INCREMENT IN THE OLD SCALE
JCM (SS) demand – Minimum two increments fixation.

5. ANNUAL INCREMENT – 3% NO CHANGE
JCM (SS) demand – 5%

6. MODIFIED ASSURED CAREER PROGRESSION – NO CHANGE – 10, 20, 30
Conditions made more stringent. Bench mark “Very Good” required instead of “good”. Examination for MACP proposed. Hierarchial promotion restored.
JCM (SS) demand: Five promotion – 8,7,6,5,4 (30 years)

7. PAY BAND, GRADE PAY SYSTEM ABOLISHED
New Pension Structure called “Matrix based open ended pay structure” recommended. Total span of the scale 40 years.
JCM (SS) demand: Abolish pay band, Grade Pay system and open ended pay scales should be introduced.

8. MAXIMUM PAY INCREASE – 14.29%
JCM (SS) demand – Minimum 40% increase for all employees.

9. COMPARISON BETWEEN MINIMUM AND MAXIMUM PAY – 1:11.4 (18000 : 205400)
Demand of the JCM (SS) – 1:8

10. NUMBER OF PAY SCALES – NOT REDUCED – NO DELAYERING
JCM(SS) demand – pay scales with grade pay 1900, 2000, 4600, 8700 and the pay scale 75500-80000 to be abolished.

11. ALLOWANCES – NO IMPROVEMENT
Commission recommended abolition of 52 existing allowances such as Assisting Cashier Allowance, Cash Handling Allowance, Treasury Allowance, Handicapped Allowance, Risk Allowance, Savings Bank Allowance, Special compensatory (Hill Area) Allowance, Cycle Allowance, Family Planning Allowance etc.

12. HRA REDUCED TO 24%, 16% AND 8% FOR X, Y AND Z CITIES
JCM (SS) demand – Existing HRA of 30% (for X class cities with population 50 lakhs and above), 20% (for Y class cities with population of 5 lakhs to 50 lakhs) and 10% (for Z class cities with less than 5 lakhs population) may be increased to 60%, 40% and 20%.

13. DRIVERS – HIGHER PAY SCALE REJECTED

14. DA FORMULA – NO CHANGE

15. HBA – NO CHANGE – CEILING RAISED TO 25 LAKHS

16. CASUAL LEAVE – NO INCREASE

17. CHILD Care Leave
1st 365 days – Full pay (100%)
Next 365 days – 80% Pay only.

18. MATERNITY LEAVE – NO CHANGE

19. LEAVE ENCASHMENT AT THE TIME OF RETIREMENT – NO INCREASE MAXIMUM 300 DAYS ONLY

20. MEDICAL
Medical Insurance Scheme for serving and retired employees recommended.

21. TRANSPORT ALLOWANCE – NO HIKE – ONLY 125% MERGER

Pay Level Higher Transport Allowance cities (A, AI) Other places
9 and above 7200 + DA 3600 + DA
3 to 8 3600 + DA 1800 + DA
1 and 2 1350 + DA 900 + DA

22. LEAVE TRAVEL CONCESSION (LTC) – NO CHANGE
One time LTC to Foreign Country during the service rejected. Splitting of Home Town LTC for employees Posted in North East, Laddakh, Andaman & Nicobars and Lakshdweep allowed.

23. ACCOUNTS STAFF BELONGING TO UNORGANIZED ACCOUNTS – PARITY WITH ORGANISED ACCOUNTS REJECTED.

24. PERIODICAL REVIEW OF WAGES (NOT TEN YEARS) RECOMMENDED. NO PAY COMMISSION REQUIRED

25. PERFORMANCE RELATED PAY SHOULD BE INTRODUCED IN GOVERNMENT SERVICES AND ALL BONUS PAYMENT SHOULD BE LINKED TO PRODUCTIVITY.
JCM (SS) demand – No Performance related Pay. Productivity Linked Bonus for all.

26. COMPULSORY RETIREMENT AND EFFICIENCY BAR REINTRODUCED
Failure to get required bench mark for promotion within the first 20 years of service will result in stoppage of increment. Such employees who have out lived their ability, their services need not be continued and the continuance of such persons in the service should be discouraged.

27. PROMOTEE AND DIRECT RECRUITS – ENTRY LEVEL PAY ANOMALY IS REMOVED
JCM (SS) demand – the differential entry pay between new recruits and promoted employees should be done away with.

28. CADRE REVIEW TO BE COMPLETED IN A TIME BOUND MANNER.
Commission recommended to hasten the process of cadre review and reduced the time taken in inter-ministerial consultations.

29. NEW PENSION SCHEME – WILL CONTINUE

30. CEA & HOSTEL SUBSIDY
Rate
CEA per month 2250 – 25% increase when DA crosses 50%
Hostel subsidy 6750 – 25% increase when DA crosses 50%

31. GROUP INSURANCE SCHEME

Level                    Monthly Contribution           Insurance Amount

1 to 5                      1500                                       15 Lakhs

6 to 9                     2500                                       25 lakhs

10 and above      5000                                       50 lakhs

PENSIONARY BENEFITS

32. PENSIONERS – PARITY – LONG STANDING DEMAND OF THE PENSIONERS ACCEPTED
Commission recommends a revised Pension Formulation for Civil employees and Defence Personnel who have retired before 01.01.2016. (expected date of implementation of seventh CPC recommendations). This formulation will bring about complete parity of past pensioners with current retirees.

33. PENSIONERS – MINIMUM PENSION RS. 9000/-
(50% of the minimum pay recommended by the 7th CPC)

34. PENSIONERS – GRATUITY CEILING RAISED TO 20 LAKHS

35. ENSIONERS – FIXED MEDICAL ALLOWANCE (FMA) – NO CHANGE (RS. 500/-)

36. CGHS FACILITIES TO ALL POSTAL PENSIONERS RECOMMENDED
33 Postal dispensaries should be merged with CGHS

37. GRAMIN DAK SEVAKS (GDS) OF THE POSTAL DEPARTMENT DEMAND FOR CIVIL SERVANTS STATUS REJECTED

Recommendation: – The committee carefully considered the demand for treating the Gramin Dak Sevaks as civil servants at par with other regular employees for all purposes, and noted the following:

(a) GDS are Extra-Departmental Agents recruited by Department of Posts to serve in rural areas.

(b) As per the Recruitment Rules the minimum educational qualification for recruitment to this post is class X.

(c) GDS are required to be on duty only for 4 to 5 hours a day under the terms and conditions of their service.

(d) The GDS are remunerated with Time Related continuity Allowance (TRCA) on the pattern of pay scales for regular Government employees plus DA on pro-rata basis.

(e) A GDS must have other means of income independent of his remuneration as a GDS to sustain himself and his family.

Government of India has so far held that GDS is outside the Civil Service of the Union and shall not claim to be at par with the Central Government Employees. The Supreme Court Judgment also states that GDS are only holder of Civil posts but not civilian employees. The Commission endorses this view and therefore has no recommendation with regard to GDS.

7th pay commission recommendation on HRA

20 Friday Nov 2015

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Commission recommends that HRA should be rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent

The 7th cpc recommendation about HRA is given below

The Commission also took note of the link between increase in HRA and increase in house rent. There was a sharp rise in the index from the first half of 2009, immediately following VI CPC recommendations. The All India House Rent Index32 chart given below demonstrates this:

8.7.15 Considering all these factors, and in line with our general policy of rationalizing the percentage based allowances by a factor of 0.8, the Commission recommends that HRA should be rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. However, the Commission also recognizes that with the current formulation, once the new pay levels are implemented, the compensation towards HRA will remain unchanged until such time as the pay and allowances are next revised. Going by the historical trend this event is likely to be a decade away. Some representations have been received stating that towards the later part of the ten year period the HRA compensation falls considerably short of the requirement. Having regard to this, the Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

8.7.16 Currently, in the case of those drawing either NPA or MSP or both, HRA is being paid as a percentage of Basic Pay+NPA or Basic Pay+MSP or Basic Pay+NPA+MSP respectively. HRA is a compensation for expenses in connection with the rent of the residential accommodation to be hired/leased by the employee and is graded based on the level of the employee, and therefore should be calculated as a percentage of Basic Pay only. Add-ons like NPA, MSP, etc. should not be included while working out HRA.