7th Pay Commission Minimum Pay Calculation:
Comparison of
Methodology for calculation of minimum Pay of Central
Government and a
few State Governments as on 1/7/2017
Comparison of Minimum
Pay
Comparison of Minimum Pay of Central Government and
a few State Governments as on 1/7/2017.
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.
7th CPC of Central
Government:
The Central Government has been following the
practice of pay revision
for employees once in ten years. Pay scales of the
Central government
employees have been revised with effect from 1.1.2016
based on the
report of the Seventh Central Pay Commission. The
revised minimum pay
effective from 01.01.2016 is 2.57 times the pre-revised
basic pay. The
minimum pay of the central employees has been worked
out at Rs.18,000/-
per month and represents a real increase of 14.29% of
the pre-revised
wages. The multiplication factor adopted for revising
all the other
scales ranges between 2.57 and 2.72 resulting in
maximum pay of
Rs.2,05,400 corresponding to the highest pre-revised
pay scale other
than the apex pay scale of Rs.80,000 which is raised to
Rs.2,25,000. The
Cabinet Secretary's pay is fixed at Rs.2,50,000.
Employees Associations (Staff side JCM) have also
sought minimum pay revision to Rs.26,000 with effect
from 01.01.2016.
Pay Revision of various
State Governments
Government of Kerala
Pay Scales: The
revised pay structure introduced by the Government of
Kerala witheffect
from 1.7.2014 is based on the recommendations of the
10th PayRevision
Commission and relates to index level of 239.92 points
ofAIACPI (IW).
Basic Pay of Group "D" employee is fixed at Rs 16500/-
The rates
of increment range from Rs.500 to Rs.2,400. The payment
of DA formula is
unaltered and continues to be as per the central
government formula to
neutralise the price rise over and above the 239.92
points twice in a
year.
Andhra Pradesh Pay
Scales: The revised pay
structure formulated by Government of Andhra Pradeshon
the basis of the
recommendation of 10th Pay Revision Commissionrelates
to index level of
220.61 points of AIACPI (IW), Basic Pay of Group "D"
employee is fixed
at Rs 13000/-
The HRA ranges from 30% to 12% of basic pay subject
to a maximum of Rs.20,000 depending upon the
classification of places
and pay.
Karnataka Pay
Scales: The revised pay
structure formulated by Government of Karnataka on the
basis of the
recommendation of 6th Pay Revision Commission relates
to index level of
276.9 of AIACPI (IW).
Costs of consumable items obtained from the
Department of Economics & Statistics, Government of
Karnataka are
utilised for their calculation.
CLICK HERE FOR REPORT
http://www.finance.kar.nic.in/6thPay/6thPayComReport
.pdf
(For English version read from page number 135 on
wards)
The
6th pay commission appointed by the Karnataka
Government recommended a
30% increase in the salaries of around 5,20,000
government employees and
73,000 employees from "aided institutions".
The revision of pay
and pension is to come into effect from 1 July 2017
with benefits paid
from 1 April 2018. The Group "D" minimum basic pay is
fixed at Rs
17000/-.
Methodology
for calculation of minimum wage adopted by Pay
commissions both Central and State Pay
Commissions
Central
pay commissions as well as pay commissions in some
states have adopted
the approach of determining the minimum pay for
employees based on the
cost of a minimum acceptable standard of living for a
household. This is
calculated on the basis of the current prices of daily
necessities like
food, clothing, housing, etc., for a family of three
consumption units
typical in the case of young employees starting their
careers in
government. The normative consumption requirements of
the family as
adopted in the 15th Indian Labour Conference in 1957
are considered for
this purpose. While the minimum pay is thus worked out
on the basis of a
set of quantitative norms and based on Dr. Wallace
Aykroyd's formula ,
the maximum pay for employees at the highest levels is
to be determined
as that required to attract and retain persons of
qualifications and
skills appropriate for the higher positions in
government services.
Comparative
picture of pay of Central Government and State
Government in regards to minimum wage as on
1.7.2017
Govt. of
India
Group "C" Min Basic Pay =Rs 18000/-
DA 5% = Rs 900/-
Total Basic Pay + DA =
Rs 18900/-
Andhra Pradesh &
Telangana
Group "D" Min Basic Pay =Rs 13000/-
Provide for Skill by adding 25% =Rs 3250-
Total Group "C" Min Basic Pay = Rs 16250/-
DA @ 24.1% = 3916/-
Total Basic Pay + DA=
Rs 20166/-
Kerala
Group "D" Min Basic Pay =Rs 16500/-
Provide for Skill by adding 25% Rs 4125/-
Total Group "C" Min Basic Pay =Rs 20625/-
DA @ 14% = 2887/-
Total Basic Pay + DA=
Rs 23512/-
Karnataka
Group "D" Min Basic Pay = Rs 17000/-
Provide for Skill by adding 25% = Rs 4250-
Total Group "C" Min Basic Pay = Rs 21250/-
DA = NIL
Total Basic Pay + DA =
Rs 21250 /-
Ratios between minimum
and maximum pay
The existing ratios between minimum and maximum pay of
the central government and the States is as follows:
Government of India 1 :12.5
Andhra Pradesh 1:8.527
Kerala 1 :7
Karnataka 1:8.86
The gap is highest in Central Government should be
reduced ratios between minimum and maximum pay to 1:
8
Hence
there is need for revision of minimum wage for Central
Government
employees and also fitment formula on the lines of the
State Government
Pay Commissions, the State Government economic
conditions are not as
good as the Central Government still the State
Governments are paying
more for their employees comparing it to the Central
Government, in case
of the 7th CPC the Central Government Employees got
only 14.29% , the
Group "A" and above officers of Central Government got
more pay hike due
to higher fitment formula of 2.72 . Thus injustice is
done for Group
"C" and Group "B".
whereas the Karnataka State Government
employees got 30% wage hike , Central Government
Employees got only
14.29% wage hike , the uniform multiplication factor
should be fixed for
the Central Government employees and also Central
Government Employees
should also get 30% wage hike .
Source:
www.karnatakacoc.blogspot.in
