Showing posts with label 7th CPC Fitment Formula. Show all posts
Showing posts with label 7th CPC Fitment Formula. Show all posts

Wednesday, November 02, 2016

Government’s Assurance on 7th CPC Issues Mainly Relating to Minimum Wage & Multiplying Factor – reg.

Government’s Assurance on 7th CPC Issues Mainly Relating to Minimum Wage & Multiplying Factor – reg.
NFIR 
National Federation of Indian Railwaymen
3, Chelmsford Road, New Dlehi – 110055

No.IV/NJCA(N)/20l4/Part II

Dated: 1-11-2016

Shri Narendra Modiji,
Hon’ble Prime Minister of India,
South Block,
Raisina Hill,
New Delhi-l10011

Respected Sir,
Sub: Government’s assurance on 7th CPC issues mainly relating to Minimum Wage & Multiplying Factor – reg.

I seek you valuable time through this letter and place the following for kind consideration and immediate action.

The Central Government employees in general and Railway employees in particular were extremely upset over the retrograde recommendations of 7th Central Pay Commission, particularly the recommendations relating to Minimum Wage and Multiplying Factor. In the wake of Indefinite Strike decision on Charter of demands of NC/JCM Constituent Organizations (Railways, Defence, Postal Confederation etc)., the Group of Ministers held meetings with JCM (Staff Side) leaders on 30th June 2016 & 06th July 2016 and consequently assurance was given that a High Level Committee will examine 7th CPC issues mainly Minimum Wage and Multiplying Factor. On this assurance, JCM Constituent organizations have deferred Strike action on 06th July, 2016.

Though a Committee was constituted under the chairmanship of Addl. Secretary (Exp), Ministry of Finance and discussions held, the response has been disappointing. The employees of Railways and other Central Government departments are greatly disappointed over non-settlement of main issues through discussions.

May I request your kind attention in the matter for implementation of assurance given by Group of Ministers for the revision of Minimum Wage & Multiplying Factor through discussions with NC/JCM (Staff Side) very early.

With Pranams,

Yours sincerely,

Sd/-
(Dr. M.Raghavaiah)
General Secretary

Source: NFIR
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Tuesday, September 27, 2016

Minimum Wage and Fitment Formula for Central Government Employees

Minimum Wage and Fitment Formula for Central Government Employees

Comrade,
The 7th CPC while calculating the minimum wage of Central Government Employees has arrived at Rs 18,000/- the 7th CPC has erred in prescribing provision to cover education, recreation, ceremonies, festivals and medical expenses has been moderated to 15 percent against the provision of 25% . Supreme Court’s ruling in the Raptakos Brett Vs Workmen case of 1991 , the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage.

The Hon’ble Minister of Labour & Employment Shri Bandaru Dattatreyaji in his press statement on 24-September-2016 has stated in Understanding Minimum Wages and Bonus article as follows.

“The norms recommended by the Indian Labour Conference, in 1957, fox fixing the minimum wages are: (a) consumption units for one wage earner; (b) minimum food requirements of 2700 calories per average Indian adult; (c) clothing requirements of 72 yards per annum per family; (d) rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme; and (e) fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage.

In 1991, the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage.”

If this provision is alone adopted should have been adopted by the 7th CPC, the minimum wage would have increased by more than 10% and worked out to Rs 20,000/-. The fitment formula will work out to 2.86. If the entire minimum wage is recalculated based on actual retail prices as on July 2015 without applying average of 12 months and correct methodology the minimum wage would be Rs 26,000/ and fitment formula would be around 3.5 .
The minister statement should be applied by the Government in true spirits and the minimum wage and fitment formula should be enhanced accordingly.

Comradely yours

(P.S.Prasad)
General Secretary

Source: http://karnatakacoc.blogspot.in/
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Sunday, July 03, 2016

Finance Minister Promises ‘Minimum Pay’ 7th Pay Commission Hikes

New Delhi: Finance Minister Arun Jaitley has promised to consider to hike the minimum pay of central government employees beyond Rs 18,000, a day after the cabinet cleared 7th Pay Commission award for its employees.

Central government employees have been demanding hike in minimum pay since November 19, when 7th Pay Commission headed by Justice A K Mathur submitted its report to Jaitley.

The Finance Minister said he was not ‘rigid’ on the issue and the government will try to rectify some of employees’ demands including minimum pay.

Jaitley met with representatives of central government employees unions at Home Minister Rajnath Singh’s house for two hours till 11pm on Thursday night.

Jaitley, Rajnath Singh and Railways Minister Suresh Prabhu attended the meeting and assured unions leaders of central government employees that their demand would be looked into.

“The minimum pay of central government employees Rs 18,000 was made on recommendations of the 7th Pay Commission. But government will consider hiking it after discussions with all stakeholders,” he said in the meeting.

“Three ministers called us and we met them at Home Minister Rajnath Singh’s house late on Thursday for almost two hours. We have been assured that the minimum pay issue is going to be referred to one of two committees that the government is setting up to rectify any anomalies in the pay commission recommendation implementation,” Shiv Gopal Mishra, General Secretary of the National Joint Council Action (NJCA), a confederation of several central government employees’ unions, told reporters after the meeting.

The council claims a membership of 3.3 million, including the central government employees – Railways, Defence, Postal, Income Tax, Central Customs and Central Excise etc.

NJCA already have rejected Modi government’s overall 23.5 percent pay hike bonanza based on 7th Pay Commission recommendations and would go on indefinite strike from 6 am, 11 July.

They have been demanding Rs 26,000 as minimum pay instead of Rs 18,000 approved by the government based on the 7th Pay Commission’s recommendations.

Mishra also said the Home Minister assured them that “their interaction with us has the blessings of PM Narendra Modi”.

“On minimum pay, we are for a negotiated settlement and it seems there is some consideration at the highest level,” he added.

The increasing the minimum pay will change the salary fitment factor. If the minimum pay is hiked from Rs.18,000 to even Rs.20,000, the fitment factor will be higher than the 2.57 times approved by the government based on the pay commission recommendations.

If the 2.57 fitment formula is tinkered with, then salary and pension in general for all central government employees will go up.

NJCA wrote to all central government employees unions that “government has proposed to refer the issue of minimum pay and fitment factor to a committee for reconsideration. The NJCA will await communication in this regard from the government”.

It said that it will meet on 6 July again to decide on the proposed indefinite strike from July 11.

Source : https://www.tkbsen.in
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Thursday, June 23, 2016

Most Important Demand is that of the CG Employees is the Minimum Wage and Fitment Formula – P.S.Prasad

Most Important Demand is that of the CG Employees is the Minimum Wage and Fitment Formula – P.S.Prasad

“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

Source: www.karnatakacoc.blogspot.in
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Sunday, June 12, 2016

7th Pay Commission: Government expected to take a decision by end of this week

7th Pay Commission: Government expected to take a decision by end of this week

Central government employees are likely to get their revised salaries based on the recommendations made by the 7th Central Pay Commission (CPC) by August this year.

A decision is expected to be taken on June 11 when the empowered committee headed by cabinet secretary P K Sinha meets to discuss the subject.

“Central government employees could get the revised pay scales with their July salaries that would be credited on Aug. 1,” the Financial Express quoted finance ministry sources as saying.

The commission had suggested an average hike of 23.5 percent in pay and allowances for about 47 lakh central government employees and 52 lakh pensioners with retrospective effect from January this year.

The Narendra Modi government allocated Rs. 70,000 crore in this year’s budget for implementing the proposals, the full-year impact of which has been estimated at about Rs. 1.02 lakh crore in 2016-17.

The implementation of the 7th CPC recommendations is being seen as a double-edged sword. While consumption is expected to get a fillip and in turn spur growth, the government’s finances are bound to come under strain with the full implementation, leaving less money in its hands to spend on infrastructure.

In its latest monetary policy statement released on Tuesday, the Reserve Bank of India (RBI) had listed the 7th CPC recommendations as one of the three risks for inflation.

“…there are upside risks – firming international commodity prices, particularly of crude oil; the implementation of the 7th Central Pay Commission awards which will have to be factored into projections as soon as clarity on implementation emerges; the upturn in inflation expectations of households and of corporates; and the stickiness in inflation excluding food and fuel,” it said.

Source : http://www.ibtimes.co.in/
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Sunday, April 10, 2016

7th Pay Commission: Reasons of delay in Implementation

7th Pay Commission: Reasons of delay in Implementation

Central Government employees must be wondering why Centre is taking so much time to implement Seventh Pay Commission recommendations.

It’s already four months since Pay Commission had submitted its report to Finance Ministry to give final touch to it.

Though, Modi Government recently dropped enough hint that it will implement increment process soon, but no particular time frame was given to the Central staff.

Here are the possible reasons why Government is taking time to implement the hike.

Government needs to arrange fund

As Rs 1.02 lakh crore is needed to implement whole increment process, Centre needs to have proper strategy for the same.

At a time when OROP’s expenditures is already taking toll on the exchequer, pay Commission will put extra burden on the government budget.

Grievances of various stakeholders

Government needs to address grievances of various stakeholders including government staff and Army men before taking final call on the same.

While Babus are unhappy with minimum basic pay, Defence personnels say that they shouln’t be treated at par with their civilian counterparts in terms of salary and allowances.

Assembly elections

As model code of conduct is in place, Government doesn’t want to take risk by announcing implementation date. Centre doesn’t want to displease voters at a time when poll process is going on in many crucial states. It is being believed that notification for the ‘increment proposal’ will be issued once State election will be over.

Procedural delay

Pay Commission will be implemented after cabinet will give it a final approval. Currently, the Implementation cell of the Empowered Committee of Secretaries is trying to address various issues with it. After giving final touch to the report, Empowered Committee will send recommendations to PMO for its nod. Once PMO will through the report, it will be placed before the Cabinet.

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Tuesday, February 23, 2016

7th CPC Recommendations on Minimum Pay Calculation

The Commission has estimated the minimum pay (the calculations for which have been tabulated in the Annexure) through the following steps:

Step 1 : The food, clothing and detergent products listed and their respective quantities specified by the 15th ILC have been adopted. These quantities indicate the monthly consumption of the listed products by a family comprising three consumption units. [For e.g. for the product ‘Dal’ the quantity specified for daily consumption is 80 grams per consumption unit per day. The monthly consumption of Dal by a consumption unit thus works out to 2.4 kg (80 x 30). Accordingly the monthly consumption of Dal by a family comprising 3 units is 7.2 kgs (2.4 x 3).]

Step 2 : The quantities have been multiplied by their respective product prices to arrive at product wise cost. The price adopted for each product is the average of prices of various items that are included in the product. The price of an item is the average of its prices prevailing in each month from July, 2014-June, 2015. [At monthly family consumption of 7.2 kg the Commission has estimated the monthly expenditure on Dal at ₹704.44 after calculating the price of Dal at ₹97.84 per kg. The price of Dal has been calculated as the average of prices of Toor, Urad and Moong Dal items specified under the product Dal and whose prices have been determined at ₹87.86, ₹109.66 and ₹96.00 respectively. The prices of these three Dal items are the twelve monthly average prices for the period July, 2014–June, 2015.] The prices of all items have been sourced from Labor Bureau, Shimla. These prices are used in the calculation of the CPI (IW) and subsequently the calculation of Dearness Allowance. In the current exercise the prices of all items are for the period July 2014-June 2015 and have been used in the calculation of DA at 119 percent operative from 01.07.2015.

Step 3 : The cost of food, clothing and detergent products obtained from Step 2 has been divided by 0.8 to arrive at a total, of which 20 percent provides for fuel and lighting expenses. This addresses the fifth component under para 4.2.3. The fourth component on housing under para 4.2.3 has not been addressed at this stage as its quantification at the final stage of pay estimation is considered more appropriate by the Commission.

Step 4 : The cost estimated from Step 3 is divided by 0.85 to arrive at a total, of which 15 percent is towards recreation, ceremonies and festivities. The prescribed provision of  25 percent to cover education, recreation, ceremonies, festivals and medical expenses has been moderated to 15 percent because expenses on educational and medical necessities are being separately provided for through relevant allowances and facilities and thus need not be provided here. This partially addresses the first of the two components outside the 15th ILC norms.

Step 5 : The cost estimated from Step 4 is increased by 25 percent to account for the skill factor, following the reasoning that there is no unskilled staff in the government after the merger of Group D staff in Group `C’. This addresses the second of the two components outside the 15th ILC norms.

Step 6 : The cost estimated from Step 5 is divided by 0.97 to arrive at a total, of which 3 percent provides for housing expenses. This is done in view of the observation that license fees for government accommodation is about 3 percent of the total pay. This addresses the fourth component stated under para 3 but partially so, as the 15th ILC norms had fixed the housing provision at 7.5 percent.

Step 7 : The cost estimated from Step 6 is as on 1 July, 2015 when the DA was 119 percent. The DA is assumed to be 125 percent as on 1 January, 2016, the day from which the Commission expects its recommendations to be implemented by the government. Accordingly the cost estimated from Step 6 has been increased by 3 percent (2.25/2.19 = 1.027 or nearly 3%).

Source: http://7cpc.india.gov.in/pdf/sevencpcreport.pdf
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Saturday, February 20, 2016

Pay Rise 54% in 6th CPC – 7th CPC Recommended only 14.3% - NFIR

The need for fixing the minimum wages at Rs 26,000/- and modifying the multiplying factor was explained in detail with full justification.

NFIR
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: II/95/Pt VIII

Dt:19th February, 2016

MESSAGE

On the Invitation of Shri R.K. Chaturvedi, Convener, Implementation Cell, Ministry of Finance Dr M. Raghavaiah, Chairman/NJCA & GS/NFIR and Shri Guman Singh, Member/NJCA & President/NFIR representing Central Government Federations/Associations attended the meeting at North Block, New Delhi at 11.00AM on 19th February 2016 and explained NJCA’s 1 to 26 charter of demands with full justification for every demand.

The need for fixing the minimum wages at Rs 26,000/- and modifying the multiplying factor was explained in detail with full justification. The leaders drew the attention of Shri Chaturvedi to Page No 63 of 7th CPC which is as follows:

It is clear from above that the pay rise is only 14.3% in 7th CPC, which is causing lot of resentment and unrest among 34 lakh Central Govt Employees belonging to Railways, Defence, Postal etc., Mr R.K. Chaturvedi assured to explain the views expressed by NJCA leaders to the Cabinet Secretary and stated that within 10-15 days a meeting between NJCA, Empowered Committee and the Implementation Cell will be held for further discussions.

The NJCA leaders made it ample clear that in the event of No Negotiated Settlement all the central government employees will be compelled to serve Strike Notice on 11th March 2016 and proceed on strike from 6.00AM on 11th April 2016.

As already decided by NJCA all the Central Govt Employees must prepare themselves for Indefinite Strike from 11th April 2016.

Sd/-
(Marri Raghavaiah)
CHAIEMAN/NJCM & GS/NFIR

Source: NFIR
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Saturday, February 13, 2016

7th Central Pay Commission – Double the Minimum Basic Pay

7th Central Pay Commission – Double the Minimum Basic Pay

New Delhi, Feb 12: There is good news for the central government employees who are waiting for the implementation of Seventh Pay Commission.

According to reports, the percentage of pay hike recommended by the pay commission may be doubled.

According to a Zeenews report, “Empowered Committee of Secretaries processing the recommendations of 7th Pay Commission(7th CPC) in an overall perspective, are likely to double the percentage of pay hike recommended by the pay commission.

As per reports, central government employees are likely to expect basic pay hike of around 30%, which will be effective January 1, 2016.” Reportedly, Prime Minister Narendra Modi has ordered officials to speed up review process so that it could be implemented soon. Modi has asked Committee of Secretaries to provide maximum benefits to central staff.

The recommendations when implemented would have bearing on remuneration of 47 lakh central government employees and 52 lakh pensioners. Subject to acceptance by the government, the recommendations will take effect from January 1, 2016.

The 7th Pay panel suggested 23.55% hike in pay and allowances of government employees. Pay will go up by 16%; increase in allowances will be 63%; increase in pension will be 24%.

Pay Commission recommends 3% annual increment and 24% hike in pension for central government staffers. Recently, the Defence Ministry also sought a fresh analysis of the concerns raised by the Army, Navy and the Air force- over the recommendations of the seventh pay commission.

The government has studied representations from the armed forces vis-a-vis the 7th Pay Commission and their concerns will be addressed “in the near future”, Defence Minister Manohar Parrikar said. OneIndia News

Read more information : Oneindia
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Tuesday, February 09, 2016

7th Pay Commission: Good News PMO Orders to Speed up Process; Notification Soon

7th Pay Commission: Good News PMO Orders to Speed up Process; Notification Soon

New Delhi, Feb 6: This will definitely cheer up all the central government employees who are disappointed at the moment as government is delaying the implementation of Seventh Pay Commission. Sources say that after One Rank One Pension, notification for 7th CPC could be released in coming months.

Reportedly, Prime Minister Narendra Modi has ordered officials to speed up review process so that it could be implemented soon. Modi has asked Committee of Secretaries to provide maximum benefits to central staff.

Cabinet Secretary P K Sinha headed empowered committee which was appointed to overview whole process has been told to accept pay commission’s recommendations without diluting them. PMO wants committee to review all the recommendations as soon as possible, so that Cabinet could take final decision over the same.

One of the officials was quoted by the Express News as saying, “The committee has been told to address the genuine concerns raised by stakeholders and accommodate their demands as much as possible. Although, there is indication that the committee may suggest some changes keeping in mind representations from middle and junior level, the decision will be taken after consultations with all the stakeholders. The entire process will take a couple of months”. Meanwhile, reports also say that in coming months, notification for 7th pay commission could be issue. A Finance Ministry source was quoted by news reports as saying, “One Rank One Pension (OROP) is now going to be implemented after notification. Hence Finance Ministry will issue the notification of ‘Pay Commission award’ in forthcoming months”. OneIndia News

Source : OneIndia News
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Sunday, February 07, 2016

7th CPC Implementation- Minutes of the Meeting of Nodal Officers held on 02-02-2016

MINUTES OF THE MEETING OF JOINT SECRETARY (IC) WITH NODAL OFFICERS HELD ON 2ND FEBRUARY, 2016

A meeting of all the Nodal Officers of various Ministries/Departments, who have been appointed to interact with the Implementation Cell in connection with the processing of the recommendations of the 7th Central Pay Commission, was held on 02.02.2016. Joint Secretary (IC), Department of Expenditure, presided over the meeting.

2. While explaining the background and the context in which the meeting of Nodal Officers was held, it was brought out in the meeting that after the receipt of the report of the 7th Central Pay Commission on 19.11.2015, Ministry of Finance initiated a proposal to setup an appropriate mechanism to process the recommendations of the Commission. With the approval of the Cabinet, an Empowered Committee of Secretaries (E-CoS) headed by the Cabinet Secretary has been set up on 27.1.2016 to screen the recommendations and to firm up the conclusions for approval of the Cabinet. An Implementation Cell (IC), as a dedicated and focused wing in the Department of Expenditure (DoE) has been created to work as the Secretariat for the E-CoS.

3. As the recommendations of the Commission relate to various Ministries/ Departments, their views/comments would be essential to process the matter for submitting the same before the E-CoS. JS(Pers), D/o Expenditure wrote a d.o. letter to the Secretaries of various Departments on 21.11.2015, wherein all the Departments were requested to formulate their views/comments on the recommendations of the Commission pertaining to them after taking into account the representations of the Staff Associations and also to nominate a Joint Secretary level Nodal Officer for interaction with the Implementation Cell. While a number of Ministries/Departments have sent their comments and nominated their Nodal Officers, the comments received from some Ministries are simply in the nature of forwarding the representations of the Staff Associations without their comments.

4. In the above background, JS(IC) explained that there was a need for all the Ministries/Departments to furnish their comments in a structured format so that their collation and analysis could be placed before E-CoS in a systemic manner. Accordingly, JS(IC) impressed upon the following action points to be acted upon by the Nodal Officers to enable an expeditious processing of the recommendations of the 7th Central Pay Commission:

Departments who have not yet nominated a Nodal Officer, should do it within the next 2 days.

(ii) To be ensured that Nodal Officers are not changed midway, unless extremely unavoidable.

(iii) Nodal Officers may get acquainted with the recommendations of the Commission as specifically applicable to their Departments. Nodal Officers to find out which Wing/Office (attached or subordinate or UT) is concerned with the recommendations of the Commission. The mechanism of Nodal Officers should also be put in place in attached/subordinate/UTs so that the comments of such offices could be properly coordinated at the level of the Department concerned without any further delay.

(iv) The comments of the attached/subordinate offices/UTs should be compiled by Nodal Officers at the Department level itself.

(v) Nodal Officers to take note of any representation or demand of the Staff Association under the administrative purview of their Department. Nodal Officers to ascertain the views/comments of the concerned office on the recommendation of the Commission in the light of the representation /demands raised by the Staff Association.

(vi) In case, there is any need for consultation with the Staff Association at the level of the Department, the same may be done as per the assessment of the Department.

(vii) Thereafter, the formal views/comments of the Department should be sent to the Implementation Cell (IC) on the recommendations of the Commission, which are specifically and directly related to that Department.

(viii) In case, the Department is of the view that any recommendation which are specifically related to their Department, need any modification, adequate justification in clear-cut terms should be brought out while sending the comments to the Implementation Cell (IC).

(ix) In case of any modification, the extra financial implications (per annum) over the recommendation of the Commission should be clearly indicated.

(x) If no modification of the recommendations of the Commission is suggested, approval of the Secretary of the Department should be obtained before sending the recommendations to the Implementation Cell (IC). if, however, any modification is suggested, approval of the Minister should be obtained.

(xi) While the views/comments of the Departments on the recommendations of the Commission directly and specifically applicable to that Department are mandatory, a Department is free to offer views/comments on the recommendations which are of general nature or concerning other Departments.

(xii) Besides sending the comments/views of the Department in the running format, the same should also be sent to the Implementation Cell (IC)in the `prescribed proforma’ within two weeks. The soft copies of the same should also be sent through email. The email id of JS(IC) is : jsic-cpc@nic. in

(xiii) Nodal Officers shoud regularly keep a watch on the website of the Finance Ministry at the link http://www.finmin.nic.in/the ministry/dept expenditure/ notification/7cpc/index.asp. E-mails should also be checked regularly for the purpose. The updates/further action to be taken shall be posted there to facilitate quick action.

5. Apart from the above action points, it was also felt that sub-groups may be formed after the receipt of comments from the Ministries/Departments to accord focused consideration to certain specific issues, if necessary.

6. Besides above, after detailed deliberations, the Nodal Officers also agreed to the following :

(i) Even if the Department has no comments, it should send a response, saying that it has `Nil Report’.

(ii) While certain Departments have already given their comments, these comments would be sent again in the ‘prescribed format’ and in accordance with the points brought out in para 4 above.

(iii) Nodal officers would ensure that the comments of their Departments on all the recommendations of the Commission and also on the representations received so far from the Staff Associations are forwarded to Implementation Cell (IC) in the prescribed format in a consolidated fashion and not in piece-meal within next two weeks.

(iv) If a representation was made by a Staff Association before the 7th Central Pay Commission and the Commission after due diligence has not accepted the demand made therein, the same matter should normally not be considered at this stage. However, if Departments consider that the issues are of such nature that they require consideration at this stage also, then they may give their comments with full justifications to the Implementation Cell (IC).

7. With the above discussions, the meeting ended with a vote of thanks to the Chair.
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Wednesday, January 27, 2016

7th CPC Recommendations : Upgradation of GP 4200, 4600 and 4800 for the Employees of the Supreme Court

7th CPC Recommendations : Upgradation of GP 4200, 4600 and 4800 for the Employees of the Supreme Court

Officers and Employees of the Supreme Court : Upgradation of Pay in Selected Posts in Existing GP 2800

Upgradation of pay has been sought for the group of posts in the present pay scale with GP 2800 to GP 4200. These include Junior Court Assistant, Chauffer, Special Process Server, Restorer Gr. I /Library Attendant Gr. I/Gestetner Operator Gr. I.

Analysis and Recommendations : The Commission has noted the recommendations made by the Committee of Judges in this regard. The Committee of Judges after examination of demands made has pointed out that in view of basic qualification, nature of duties and degree of efficiency, integrity and confidentiality the post of Junior Court Assistant can be considered for an upgradation in pay.

The Commission further notes that the educational qualifications for direct recruitment to the post of Junior Court Assistant is a degree from a recognised University and knowledge of computer operations with a stipulated typing speed in computers. The information furnished to the Commission with respect to the Recruitment Rules of various posts also indicates that in all other posts carrying a GP 2800 the educational qualifications is lower than graduation and therefore equating Junior Court Assistants with these posts would not be correct. In view of the foregoing the Commission is in agreement with the views of the Committee of Judges. Accordingly, the Commission recommends upgradation in the pay for the post of Junior Court Assistant to GP 4200 from the existing GP 2800.

Upgradation of Pay in Selected Posts in Existing GP 4200

For the group of posts covering Court Assistant, Personal Assistant, Accountant, Cashier, the Association requested pay parity with the holders of analogous/equivalent posts in the High Court of Delhi, who are drawing pay with GP 4600.

Analysis and Recommendations : The Commission has noted the recommendations made by the Committee of Judges in this regard. The Committee of Judges, after examination of demands made, agrees with the recommendation of upgradation in pay to conform to the pay of the holders of analogous posts in the High Court of Delhi.

The Commission recognises that the Supreme Court is at the apex of the hierarchy of Courts in India and hence its personnel should not be disadvantageously placed vis-à-vis the High Court of Delhi.

Accordingly, the Commission recommends upgradation for the post of Court Assistant, Personal Assistant, Accountant and Cashier to GP 4600 from the existing GP 4200.

Upgradation of Pay in Selected Posts in Existing GP 4600

Upgradation of pay has been sought for pay of the group of posts in the present GP 4600 to GP 4800. These include posts of Private Secretary to Additional Registrar, Sr. Personal Assistant, Senior Court Assistant, Court Associate, Editor of Paper books, Assistant Librarian, Proof Reader, Assistant Accounts Officer (Concurrent Audit) and Building Supervisor. The justification for upgradation is that the holders of analogous posts in the High Court of Delhi are in GP 4800.

Analysis and Recommendations : The Commission has been informed that the Committee of Judges, after examination of demands made, have endorsed the upgradation in pay to conform with the pay of the holders of analogous posts in the High Court of Delhi.

The Commission recognises that the Supreme Court is at the apex of the hierarchy of Courts in India and hence its personnel should not be disadvantageously placed vis-à-vis the High Court of Delhi. Accordingly, the Commission recommends upgradation in the pay for the post of Private Secretary to Additional Registrar, Sr. Personal Assistant, Senior Court Assistant, Court Associate, Editor of Paper Books, Assistant Librarian, Proof Reader, Assistant Accounts Officer (Concurrent Audit) and Building Supervisor to GP 4800 from the existing GP 4600. However on completion of four years approved service further non-functional upgrade to GP 5400 (PB-2) is also recommended for these posts.
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Monday, January 25, 2016

7th Pay Commission – Hike the Basic Minimum pay by 44% – Review the Salaries after every 5 years – Unions

The brewing discontent amongst the central government employees is threatening to create a storm and disrupt the implementation process. The unions are asking around 44% hike on the basic minimum pay and review the salaries every 5 years.

7th Pay Commission – Hike the Basic Minimum pay by 44% – The unions had staged a 3-day agitation earlier in January, and even threatened to strike work for longer period.

Implementing the recommendations of the 7th Central Pay Commission (7th CPC) is not going to be a cakewalk for the government.

The brewing discontent amongst the central government employees is threatening to create a storm and disrupt the implementation process. The unions are asking around 44 percent hike on the basic minimum pay suggested by the 7th Central Pay Commission.

The 7th CPC had recommended the minimum pay at Rs 18,000 and the maximum pay at Rs 250,000, but the employee unions wants the minimum pay to be hikes from Rs 18,000 per month to Rs 26,000–a rise of around 44.4 percent.

The unions also said that the pay panel has recommended the lowest hike in basic pay since independence.

The unions argue that pay scales vary from states to states. They also want the minimum pay to be applied across all the states in the country.

The Central government employees’ unions have not only demanded to increase the minimum pay of central government employees, but also want government to review the salaries of central government employees after every 5 years instead of the current 10 years.

The previous 6th Central Pay Commission had recommended a 20 percent hike, which the government had doubled while implementing it in 2008. However, the present government is on the look out for a way to somehow influence negatively, the already employee negative 7th cpc recommendations.

The unions have upped the ante on salary hike since the government set up empowered committee of secretaries headed by Cabinet Secretary earlier in January to process the recommendations of the 7th CPC.

The unions had staged a 3-day agitation earlier in January, and even threatened to strike work for longer period.

Source: Zee News
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Thursday, January 21, 2016

7th CPC – Implementation may be Deferred – “Recommendations Biggest Headache for Finance Ministry” – Jayant Sinha

Implementation of 7th CPC pay panel award likely to be deferred

The announcement of a deferral is expected to be part of Jaitley's Budget speech on February 29

With a massive financial resource crunch estimated for 2016-17, the government is planning to defer the implementation of the 7th Pay Commission award.

Last week, the Union Cabinet approved the formation of an empowered committee of secretaries to work out ways for staggering the award through more than one financial year, instead of letting the Rs 1,02,100-crore bill from the implementation of the award come up at one go.
Read our full coverage on Union Budget 2016

A top-ranked official said one of the options for the empowered committee was to defer the increase in allowances for central government employees, while letting the rise in pay for all scales to go through. According to finance ministry figures, the ratio of allowances to pay for these 4.7 million employees is 1:1.4. For instance, the Budget estimates in 2015-16 pegged the salary bill for all central government employees at Rs 60,731 crore, whereas the tab for allowances is Rs 84,437.4 crore.

The step would allow Finance Minister Arun Jaitley to keep the Budget numbers for this financial year and the next close to the targeted 3.9 per cent and 3.5 per cent of gross domestic product (GDP) that he has committed himself to. For instance, even if the annual expenditure for 2016-17 were kept at about Rs 18 lakh crore (almost unchanged from Rs 17,77,477 crore in 2015-16), the Pay Commission recommendations would add another 5.5 per cent to it.

Given the sluggish pace of GDP growth and the almost negative deflator, the aggregate Budget numbers would otherwise be impossible to sustain on the back of the current trend in growth of tax receipts - just 50 per cent of the Budget estimates after the first eight months of the year, according to Controller General of Accounts data. The assumptions being worked on in North Block are that these might not change dramatically in the next financial year, too.

The announcement of a deferral is expected to be part of Jaitley's Budget speech on February 29. The formation of an empowered committee for the pay panel recommendations, again a first for the central government, is meant to bring all stakeholders on board in the exercise.

The official explained ministry-wise consultations with the department of expenditure in the finance ministry, in the run up to the Budget, were mostly over. Those discussions had proceeded on the assumptions that the Pay Commission recommendations would be implemented. It was now necessary to bring the secretaries of key departments on board about the need for a drastic cut-back on those estimates.

The status quo on allowances would also allow the government to ignore the demand made by various staff associations to raise the minimum level of salary for employees. The Pay Commission has suggested that the minimum should be Rs 18,000 per month; the unions have demanded that it should be raised to a band of Rs 19,000 to Rs 21,000 a month. Such a change would have created a ripple effect. About 70 per cent of the government employees are bunched in the non-executive ranks; the starting salary for them tops about Rs 42,000 a month, show calculations by the Commission. Even a modest increase in pay for them would cascade the bill for the government by another Rs 50,000 crore annually. The award of the Commission is slated to take effect from January 1 this year.

A key element in the plan to defer some elements of the 7th Pay Commission recommendations will be the railway ministry. Government managers reckon the powerful unions of the Indian Railways need to be brought on board for this plan to be successful. The higher wage bill for the Suresh Prabhu-led ministry works out to Rs 28,450 crore a year, only a shade less than the yearly loss it makes on its passenger services at present. No formal communications have been sent out to the railway unions by the committee. "It will follow once the empowered committee has decided to take a call on which allowances to clip," said the official.

In a recent television interview, Minister of State for Finance Jayant Sinha had said the Pay Commission recommendations were the biggest headache for his ministry, struggling to keep the aggregate expenditure of the Union government under control.

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Monday, January 18, 2016

Pay Matrix Recommended by 7th CPC is not final and subject to change – Federation Sources

The Constituent Unions of NCJCM has called for three days’ agitation Programme from 19-1-2016 to 21-1-2016 to draw the attention of central government to settle the Modified charter of demands.

Recently they demanded the government to constitute an empowered Committee to settle their demands through negotiation. However, the Cabinet gave its approval for constitution of an Empowered Committee to study the 7th Pay Commission report for implementation Process.

We asked some Trade Union Leaders about their expectation from the Government in respect of 7th Pay Commission report. They told that so far they didn’t have any formal meeting over Pay commission report with Government after the report submitted by commission. When asked about their opinion about the Format of Pay Matrix recommended by 7th Pay Commission, they said ” We don’t think that the Pay Matrix recommended by 7th CPC is Final, we won’t accept the Fitment factor recommended by the Commission”

They said, “Of course there will be some anomaly would arise when it is in the process of implementation in respect of Pay Matrix . That cannot be anticipated now. As of now Anomalies in bunching and Promotion benefits are expected. But we think this Pay scale recommended in 7th pay commission report is not FINAL and subject to change. Because it needs concurrence from both the end.”

They added further ” The central government may accept this recommendation without any modification. Because the central government itself told after giving four-month extension to the Pay Commission that the Seventh Pay Commission would be mindful of the fiscal concerns. It indicates the Central Government intention. But the Central Government Employees’ Unions and Association are very much disappointed with this recommendation and we sought modifications in many recommendations. Our Federations declared it as retrograde recommendation. Hence it will not be easy for the central government to implement the report without doing any change in the recommendations”.

So the Unions Federations are not getting too much involved in 7th CPC Pay Scales. Because they are firm in their decision that percentage of increase recommended in minimum pay is far below the required level prescribed by Dr. Akhroid formula and 15th ILC norms for determining Minimum Pay and it need to be increased. However, NFIR has tried to establish that the take home pay is very much less when compared to previous pay commissions. If the Central Government accept to increase the Minimum Pay, then that would be the criteria for arriving subsequent pay scales. Hence expecting changes in Pay Matrix is inevitable.

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Wednesday, January 13, 2016

Finance Ministry Rejects Railway Ministry’s Request for 7th CPC Expenditure Rs 32,000 Crore

Finance Ministry Rejects Railway Ministry’s Request for 7th CPC Expenditure Rs 32,000 Crore

The railway ministry wants the funds to meet expenses to pay for the Seventh Pay Commission’s recommendations

New Delhi: The finance ministry has rejected the request of the railways for Rs.32,000 crore as revenue grant, sought to tide over the impending impact of the Seventh Pay Commission recommendations on the public transporter.

In a communication to the railways, the finance ministry has categorically rejected the Rs.32,000 crore demand expressing its inability to provide the grant, and has asked the public transporter to raise its own resources to manage the finance, said a senior railway ministry official close to the development on the matter.

Earlier, railway minister Suresh Prabhu had written a letter to finance minister Arun Jaitley seeking Rs.32,000 crore as grant from the exchequer’s for implementation of the commission’s recommendations and cited the difficult financial position that the railways is passing through.

“I would therefore earnestly request you to help the ministry of railways and handhold it for the implementation of 7th CPC recommendations,” the railway minister said in the letter last month.

Prabhu hoped that during the coming three-four years, railways would be able to absorb the impact from their resources through gradual adjustment of fares and other non-tariff revenue measures. However, after the rejection of the demand, there would be a fresh attempt by the railway ministry to take up the issue with the finance ministry.

According to the Seventh Pay Commission report, the annual financial impact on the railways will be approximately Rs.28,450 crore in addition to the normal growth which will require to be built into the railway budget 2016-17.

The initial assessment, however, is that this additional impact would be around Rs.30,031 crore over and above the normal assessed growth of Rs.10,816 crore. Prabhu has repeatedly maintained that the pay commission burden is “unbearable” and the railways cannot implement it without government help.

At present, the railways is facing a financial crunch with earnings from freight and passenger earnings below the target. Pay and allowances and pension account for 51.5% of the gross receipts of railways. With the financial impact of the 7th CPC, this will increase to 68% of the gross receipts in 2016-17 at present level of growth. Railways has put in place serious cost-cutting measures and are focusing on fuel management. PTI

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Tuesday, December 01, 2015

Clarification on Uniform Fitment Factor Recommended by 7th Pay Commission

Clarification on Uniform Fitment Factor Recommended by 7th Pay Commission

Uniform Fitment Factor recommended by 7th Pay Commission to arrive revised Basic Pay is 2.57

But there is a confusion among Central government employees about the Fitment Factor used by 7th Pay Commission to arrive rationalised Entry Pay in the Table : 4 provided in its Report.

The doubt raised by many of our readers are ..

1. Why there are 6 types of Fitment factors mentioned in Table : 4..? [ 2.57, 2.62,2.67, 2.72,2.78,2.81]

2. why shouldn’t they are used for arriving the revised Pay ..?

3. Whether using 2.57 to calculate 7th CPC revised pay for all basic pay is correct or not ?

Let us now be clear about the recommendations on the above issues.

1.. Why there are 6 types of Fitment factors mentioned in Table :4..? [ 2.57, 2.62,2.67, 2.72,2.78,2.81]

Though the commission has recommended 2.57 as uniform Fitment factor for all Pay scales to arrive revised Pay, the 7th pay commission wanted to increase the quantum hike between Pay Scales of Groups [GROUP A,B and C] also . Because sixth Pay commission recommended significant hike between Pay Bands to show the difference between three Groups (A,B and C) in respect of Pay Scale.

In Simple term, the 7th pay commission wanted to grant significant hike for the one who is moving to Higher Group on account of Promotion or non functional up gradation, like it was granted in sixth Pay commission ..

for example..

If one gets promotion from GP 2800 to GP 4200,

Minimum pay in the Pay Band also to be taken into account for Fixation of Pay in GP 4200 because the individual is moving from PB-I to PB-II. On Pay Fixation, the Basic Pay (GP +BP ) if arrived is below the Minimum Basic Pay of Rs.13500 of the PB-II , the Basic Pay on account of Promotion to GP 4200 will be fixed as Rs.13500. Here it has to be noted that not only the hike in grade pay but hike in Pay Band also involved in fixation Pay when one is moving from one Pay band to another Pay band.

To maintain the difference between Three Groups of employees and HAG scales the multiple Fitment factors used to arrive rationalised entry pay to distinguish the Group A, B and C Employees

So the specific Fitment Factors used to arrive Entry Pay for a Particular Group is to show the significance of that Group in Respect of Minimum Basic Pay. So if Group Change involves when one gets Promotion or non functional up gradation, there will be some hike in Pay also there, apart from moving to next Level.

2. why shouldn’t all these Fitments factors be used for arriving the revised Pay ..?

Now it is clear that these Fitment factors are used only to arrive Entry Pay of Pay Scales for Particular Groups and HAG Scales. so these Fitment factors should not be used to calculate our revised pay of 7th Pay commission.

3. Whether using 2.57 to calculate 7th CPC revised pay for all Basic Pay is correct or not ?

Yes. Using the Fitment Factor 2.57 for all Pay scale to calculate 7th CPC revised pay is correct. As per 7th CPC recommendations the uniform Fitment factor to be used to arrive revised Pay for serving employees, is 2.57.

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