Central Govt should increase Minimum Pay and Fitment formula – Karnataka COC

Central Govt should increase Minimum Pay and Fitment formula – Karnataka COC

Revision of Minimum Pay and Fitment formula due to increased revenue collections of the Central Government

Comrades, 

Today none of the 7th CPC related demands of Central Government Employees are settled. The assurance given by the Group of Ministers to the NJCA leaders regarding increase in Minimum Pay and Fitment formula is in paper even after a lapse of 20 months. Now the Finance Minister has replied in Parliament that “no change in Minimum Pay and Fitment formula is at present under consideration”.

To avert the 11th July CG employees strike the Hon’ble Prime Minster had instructed the group of Hon’ble Ministers including Shri Rajnath Singhji, Hon’ble Home Minister, Shri Suresh Prabhuji , Hon’ble Railway Minister and Shri Arun Jaitelyji , Hon’ble Finance Minister to hold discussions with the Staff Side (JCM) on 30th June 2016 and the Shri Arun Jaitelyji , Hon’ble Finance Minister had published a written assurances in the Government website on 6th July 2016 leading to deferment of the strike .

Pay Commission Objective: It is the endeavour of every pay commission to ensure that the pay and allowances of employees should be ‘fair and reasonable’. The pay structure should also motivate the employees to reasonable levels of performance in the tasks assigned to them, so that the general public derive the benefit of their service as intended.

Our demand of revision of Minimum Pay and Fitment formula is quite justified.

Comparison of earlier wage hike we can observe that the fitment factor of 2.57 times is the lowest comparing to other pay commissions. If we make a study of earlier pay commission.

Pay Commission	Year	Minimum wage (old)	Minimum wage (revised)	Increase
2nd CPC	1959	Rs 55/-	Rs 80/-	1.45 times
3rd CPC	1973	Rs 80/-	Rs 196/-	2.45 times
4th CPC	1986	Rs 196/-	Rs 750/-	3.82 times
5th CPC	1996	Rs 750/-	Rs 2550/-	3.40 times
6th CPC*	2006	Rs 2550/-	Rs 7000/-	2.74 times
7th CPC*	2016	Rs 7000/-	Rs 18000/-	2.57 times

Comparative picture of pay of Central Government and State Government in regards to minimum wage as on 1.7.2017

Many of the State Governments are following the Central Government pay scales, but a few state Governments have improved upon the Central Government pay scales. The examples are as under:

Government Agency	Group “D” Basic pay in Rs	Add Skill 25% from Group “D” to Group “C”	Group “C” Basic Pay in Rs	DA %	Add DA Amount in  Rs	Basic Pay in Group “C” in Rs
Govt. of India		Nil	18000	5	900	18900
Andhra Pradesh &  Telangana	13000	3250	16250	24.1	3916	20166
Kerala	16500	4125	20625	14	2887	23512
Karnataka	17000	4250	21250	Nil		21250

The financial position of the Central Government is very good. Even the GDP (Gross Domestic Product) has shown increase in last few years which is around 7% , the Indian economy is fastest growing and placed 7th in the world ( which is at 2,250.987 billions of $ ), comparing to wages paid in the world our wages are at lower level. The Government fiscal budget deficit equal to 3.50 percent of the country’s Gross Domestic Product in 2016. Compared to 2008 where the fiscal deficit was at 7.8 %, but today the fiscal deficit is contained at 3.5%. This is also a healthy sign of the economic status of the Central Government financial status, the budget fiscal deficit is always below 4%.

Direct tax collections in 2017-18 at Rs 9.95 lakh crore, exceeded the revised budgetary target of Rs 9.8 lakh crore. Also, 6.84 crore income tax returns filed in the year against 5.43 crore in the previous year signalling a rise of 26 % . A net of 99.5 lakh new assesses were added to the tax net.

Net collection from corporate tax went up 17.1 per cent while that from personal income tax rose 18.9 %.

The revenue collection from Goods and Services Tax (GST) exceeded Rs 1 lakh crore in April 2018, GST revenue collected in April 2018 came at Rs 1,03,458 crore.

With the improved economic climate, introduction of e-way bill and improved GST compliance, GST collections would continue to show a positive trend.

The wage bill of the Central Government on in its employees is less than 10% or 3.4% of the GDP, which is less compared to various countries world wide .

Vacancy of the Central Government is about 15 % , more than 4 lakhs vacancies are existing in the Central Government the work load is being carried out by the existing employees. The Government being a model employer should pay for its employees and motivate them to work more for implementation of its policies.

Hence due to the improved revenue earning of the Central Government, as assured to the staff side JCM by the Group of Ministers in respect of increase of Minimum Pay and Fitment formula, the Central Government should increase the Minimum Pay and Fitment formula.

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Important factors to set up 7th CPC and DA merger.

   The General Secretary of Confederation of Central Government Employees and Workers of Karnataka State published a valuable post regarding 7th CPC. It is reproduced the same for your reference.

7th CPC Demand
Comrades,

   Confederation of Central Government Employees and Workers have been demanding constitution of the 7th CPC, DA merger , and other 15 charter of common demands of the Central Government Employees apart from 48 common demands of the CG Employees which has been accepted by the Kolkatta conference.

   The Common questions & answers which the Government of India has been  answering is that as follows.

   1) The 6th CPC has not recommended the DA merger has recommended 25% increase in certain allowances.

   2) The 6th CPC has not recommended the constitution of the 7th CPC and is silent on this issue.

   3) Normally it takes 10 years to set up another Central Pay Commission.

   4) The DA as recommended as per the Consumer price index is released which works out to 80% as on 1/1/2013. So when ever the prices have gone up DA is provided to compensate the rising of prices.

   5) If another Central Pay Commission is set up there will be huge burden on common man, at this stage the Government of India cannot afford to set up 7th CPC.

   6) The anomalies  are being taken up the National anomalies committee.

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