7th Pay Commission – Central Government employees cheated in a big way

| September 18, 2016

7th Pay Commission minimum pay and fitment factor – IRTSA Memorandum to Committees of Secretaries – Minimum Pay of Rs. 22,100 and fitment factor of 3.15 are to be fixed

IRTSA Memorandum to Govt on fixation of Minimum Pay & Fitment Factor of 7th CPC

INDIAN RAILWAYS TECHNICAL SUPERVISORS ASSOCIATION

(Estd. 1965, Regd. No.1329, Website http://www.irtsa.net )

No:IRTSA/CHQ / Memo CPC MF / 2016-16

Date: 14-9-2016

Additional Secretary (Expenditure),

Government of India,

North Block,

New Delhi-110001

For kind consideration of the Committee of Secretaries – On Minimum Pay & Fitment Factor of 7th CPC

Subject: MINIMUM PAY & MULTIPLE FACTOR AFTER 7TH CPC

Reference: i) Para 10.1.67 of Report of 7th Pay Commission
ii) Para 3 & 4 of Resolution No. 1-2/2016-IC dated 25-7-2016 of Govt of India on 7th CPC Report

We have to make the following submissions for the kind consideration of the Committee for regarding Minimum Pay and Fitment / Multiplication Factor:

1. MODIFICATIONS ACCEPTED BY SUPREME COURT & PRESENT DAY REQUIREMENTS IGNORED BY 7TH CPC FOR DECIDING MINIMUM PAY BY Dr. W. AYKROYED FORMULA

a) The Minimum Pay Fixed at Rs.18000 by the 7th CPC is very much unjust and meager and ignores the accepted norms in this regard.

b) The Minimum wage of Rs.18000 proposed by 7th Pay Commission is based on Dr Aykroyed formula for Minimum Need Based Wage which was adopted by 15th Indian Labour Conference held in 1957. This needed to be updated as per present day requirements. As per law of natural justice and as per directions of the Supreme Court of India issued as long back as in 1991 in the case of Reputekos Brett & Co. Vs  Workers & others.

c) Prescribed provision of 25% to cover education, recreation, festivals & medical expenses has been reduced to 15% by 7th CPC. Similarly provision for housing has been reduced from prescribed 7.5% to 3% which are totally inadequate, unjust and unrealistic..

d) In para 4.2.8, Step-1, 7th CPC indicated that a family is comprising of three consumption units, as per norms set by 15th Indian Labour Conference (ILC) in 1957.

e) Computing husband as one unit, wife as 0.8 unit and two children each below the age of 14 as 0.6 unit is very much inadequate and 15th ILC had not considered maintenance of aged parents.

f) Maintenance and Welfare of Parents and Senior Citizens Act, 2007 make it a legal obligation for children and heirs to provide maintenance to senior citizens and parents, by monthly allowance.

g) It is therefore, necessary that while calculating cost for maintenance household the aged parents should also be considered as 2 Units besides the husband, wife,  two Children as consumption units per family and the same should be taken at least as four (if not five) instead of three.

h) Dr. W. Aykroyd formula on food & other requirements and associated requirements specified by 15th ILC shall be applied for 4 consumption units per family.

i) Minimum Pay works out to be Rs.24,000 (instead of Rs.18000 recommended by the 7th CPC) and the multiple factor 3.43 (instead of 2.57 recommended by the 7th CPC)

j) Table-1 of 7th CPC for calculation of minimum pay needs to be redrawn as under by keeping 4 consumption unit per family:

Table-1

Calculation of Minimum Pay as on 01.01.2016 for four consumption unit per family
Per day PCU Unit Per month 4 PCU Unit Price/Unit \
R s.
Expenses
R s.
1 Rice/Wheat 475 gm 57.00 kg 25.93 1478.01
2 Dal (Toor/Urad/Moong) 80 gm 9.60 kg 97.84 939.26
3 Raw Vegetables 100 gm 12.00 kg 58.48 701.76
4 Green Vegetables 125 gm 15.00 kg 38.12 571.80
5 Other Vegetables 75 gm 9.00 kg 32.80 295.20
6 Fruits 120 gm 14.40 kg 64.16 923.90
7 Milk 200 ml 24.00 l i t re 37.74 905.76
8 Sugar/Jaggery 56 gm 6.72 kg 37.40 251.33
9 Edible Oil 40 gm 4.80 kg 114.02 547.30
10 Fish 3.33 kg 268.38 894.60
11 Meat 6.67 kg 400.90 2672.67
12 E gg 120 no. 4.27 512.40
13 Detergents etc R s/month 388.41 388.41
14 Clothing 7.33 m eter 164.88 1208.57
15

T otal (1-14)

12290.97

16

Fuel, Electricity, Water Charges

3072.74

17

Total-(15) divided by 0.8

15363.71

18

Marriage, Recreation, Festivals, etc.

2711.24

19

Total-(17) divided by 0.85

18074.95

20

Provide for Skill by adding 25% to (19)

4518.74

21

Sum (19+20)

22593.69

22

Housing @

698.77

23

Total-Divide no.21 by 0.97

23292.47

24

Step up of 3% on No.23 as DA is projected at 125% on 01.01.2016

698.77

25

Final Minimum Pay as on 01.01.2016 (23+24)

23991.24

26

Rounding off

24000

2. MINIMUM PLUS DA WITH 40% FIXATION BENEFIT

a) 40% fixation benefit was given over 4th CPC scale to 5th CPC scale in general to all the scales.

b) 40% of maximum of 5th CPC scale was given over 5th CPC scale as fixation benefit in general in 6th CPC scales.

c) But, only 14.29% (i.e even less than 15%) of basic pay has been given as fixation benefit is after the 7th CPC over 6th CPC pay, which is grievously inadequate.

d) Table-2 given below gives the comparison on fixation benefit given after 6th CPC & after 7th CPC.

Table-2

5 t h CPC

6 t h CPC

% increase 

from 5th CPC
Pay
 + DA to
6th CPC Pay

6th CPC
Pay +
 
125% DA

7th CPC Pay

% increase
from 6th CPC
Pay
 + DA to
7th CPC

5th
CPC Pay

5th CPC
Pay +
DA
 86%

PB

GP

6th 
CPC
Basic Pay

2750

5115

PB-1

1800

7000

36.85%

18000

14.29%

3050

5673

PB-1

1900

7730

36.26%

22050

19900

13.68%

3200

5952

PB-1

2000

8460

42.14%

24507

21700

19.66%

4000

7440

PB-1

2400

9910

33.20%

25389

25500

15.18%

4500

8370

PB-1

2800

11360

35.72%

30996

29200

16.18%

5000

9300

PB-2

4200

13500

45.16%

35186

35400

16.54%

7450

13857

PB-2

4600

17140

23.69%

42525

44900

22.50%

7500

13950

PB-2

4800

18150

30.11%

51314

47600

12.83%

8000

14880

PB-2

5400

21000

41.13%

59063

53100

16.37%

8000

14880

PB-3

5400

21000

41.13%

63882

56100

18.73%

10325

19205

PB-3

6600

25350

32.00%

66150

67700

16.58%

12000

22320

PB-3

7600

29500

32.17%

81302

78800

17.05%

14300

26598

PB-4

8700

46100

73.32%

94248

118500

14.24%

15400

28644

PB-4

8900

49100

71.41%

145215

131100

19.91%

14300

26598

PB-4

10000

53000

99.26%

153059

144200

35.21%

e) The Multiple Factor of 2.57 proposed by the Pay Commission for Pay Fixation is totally unjust, inadequate and arbitrary especially keeping in view the high  inflation (in real terms and wage rise in the organized sector including the PSUs after two revisions in PSUs since the Sixth CPC. The Fixation Benefit needs to  be at least 40% – as after the last two Pay Commissions and the Common Multiple Factor may please be fixed at least (Pay+DA) + 40% of Pay + DA, ie. 3.15  times of 6th CPC basic pay.

Table -3 showing calculation of new pay which will be equal to Pay + Pay fixation benefit equal to 40% of 6th CPC Pay + DA

1 Minimum Pay (6th CPC) 7000
2 D A @ 125% 8750
3 Pay + DA 15750
4 Fixation benefit (40% of Pay + DA) & Proposed increase in real wage 6300
5 New Pay (3+4) 22050
6 Increase in basic pay (in Rs.) (5 – 1) 15050
7 No . of times increase in basic pay 3.15
8 Real wage no. of times increase 1.40

k) Minimum Pay works out to be Rs.22,100 (instead of Rs.18000 recommended by the 7th CPC) and the multiple factor 3.15 (instead of 2.57 recommended by the 7th CPC)

3. MINIMUM PAY BY MERGER OF DA EVERY TIME THE DA RISES BY 50%

a) Merger of DA with Pay & Pension was always done every time the DA crossed 50%, except after the Sixth Pay Commission and that norm justifiably needs to be restored.

b) Minimum Pay as on 1-1-2016 would be Rs.19,687 if DA was merged with Pay when the DA crossed 50% (from 1-1-2011) and when it crossed 100% even without any relief  or fixation benefit of 7th CPC and the Minimum Pay would be Rs. 22,483 or say 22,500 with 14.29% of total emoluments Fixation benefit given by the 7th CPC (which  itself was the lowest ever after any CPC) – as per detailed calculations submitted below:

4. a) Minimum Pay after DA Merger at 50% & 100% and with 14.29% rise.

7000×1.5 = 10500 x 1.5 = 15750×1.25 = Rs.19687×1.1429 = 22500.272 or say Rs.22000

b) Fitment Factor after DA Merger at 50% & 100% and with 14.29% rise

= 22500 / 7000 = 3.21 times of BP

c) Even if the Merger of DA was done only once after it crossed 50% (on 1-1-2011), Minimum Pay as on 1-1-2016 would have been Rs.18375 (without any relief or fixation benefit of CPC) and Rs.20984 or say Rs.21000 with 14.2% Fixation benefit given by the 7th CPC as per details below:

d) Minimum Pay after DA Merger at 50% & 100% and 14.2% rise:

= 7000 x 1.5 = 10500 x 1.75 = 18375 x 1.1429 = Rs.21000.7875 or say Rs.21000.

e) Fitment Factor after DA Merger at 50% and 14.2% rise

21000 / 7000 = 3 times of BP

f) All the foregoing calculations of Minimum Pay and Fitment Factor are linked to only 14.2% rise of wages as inherent in the recommendations of 7th CPC – which is  the lowest ever rise after a Pay Commission in recent years.

g) The minimum Pay may please be fixed as Rs.22500 and the multiple factor for revision of Pay and Pension may please be fixed as 3.21.

4. It is, therefore, requested that, in view of above submissions:

a) Minimum Pay may please be fixed as Rs.24,000 and the multiple factor 3.43, by modifying Dr.W.Aykroyed Formula & 15th ILC norms by duly taking into account Maintenance and Welfare of Parents and Senior Citizens Act, 2007. (or)

b) Minimum Pay be fixed as Rs.22,100 and the multiple factor 3.15 by giving 40% fixation benefit for the 6th CPC Pay & DA. (or)

c) Minimum Pay may please be fixed as Rs.22500 and the multiple factor for revision of Pay and Pension may please be fixed as 3.21, by merging the DA with Pay whenever it crossed 50% with fixation benefit of 14.2% equitant to the rise recommended by 7th CPC.

Thanking you in anticipation,

Yours faithfully,

Harchandan Singh, 

General Secretary, IRTSA

Download IRTSA Memorandum IRTSA/CHQ / Memo CPC MF / 2016-16 dated 14.09.2016

Category: News, Seventh Pay Commission

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