7th CPC Minimum wage and fitment formula hike issues - CoC Karnataka

7th CPC Minimum wage and fitment formula hike issues - CoC Karnataka

Minimum wage and fitment formula hike issues

There are various reports in the news media, print media & social media regarding the hike in the minimum wage of Central Government employees from the existing Rs 18,000/-  to Rs 21,000/- and fitment formula from 2.57 to 3.00, which shall be implemented from 1st January 2018. The same shall be announced in the National Anomaly Committee due on 9th of October.

Comrades, 

We cannot confirm this news, comrades we should concentrate on struggle path as the Confederation has given the series of programs , I hope the Government will implement the hike in minimum wage for CG employees and revise the fitment formula also from the existing 2.57 to 3.00 even though the Staff side JCM has demanded Rs 26,000/ as minimum wage and fitment formula of 3.56 , this hike should be from 1/1/2016 not 1/1/2018 as per media reports.

In fact the Central Government has to take the political decisions on the wage hike , in fact the group of ministers of the Central Government have agreed to raise the minimum wage for CG employees on 30th June 2016 . I hope the commitment of the union minsters shall be honoured now.

Secondly the economy of the country which was going very well during past three years has showed down ward trend in last one year as the GDP which was at 9.1 in 2015-16 has reduced to 5.7 in 2017-18 .The economic activity has to take place, it is also observed during the past one year, in spite of economic recessions, the Government revenue collection has increased considerably. To improve the economic activity of the country and increase the GDP the Central Government should spend its funds which is available with them .

If the Central Government increases the minimum wage and fitment formula for its employees, the Central Government employees gets back 40% of the wage increase through the Income Tax and GST . So hardly a Government servant is left out with 60% wage hike , here also he spends the amount credited to him , as such an economic activity is induced in the public which will help to create more demand and employment activity.

I hope the Central Government takes a political decisions on increase of minimum wage hike and fitment formula for more than one crore employees which will also benefit the public and the CG employees.

Issued by COC Karnataka

Central Government Employees getting lack of basic of the actual minimum wage of Rs 26,000

 

QUANTIFICATION OF NEED-BASED MINIMUM WAGE AND NEED FOR REVISION OF MINIMUM WAGE OF CENTRAL GOVERNMENT EMPLOYEES

The concept of the Need-Based Minimum Wage has evolved in India after Independence and owes its origin to the Directive Principles of the Indian Constitution and the welfare policy of the Government. Its acceptance in principle connotes a public effort at an institutional determination of wage rates particularly in the industrial sector of the economy. Unfortunately the computation of the need based minimum wage has become a controversial subject in the country. While the concept of what the need based minimum wage should cover is fairly clear and generally accepted by both the employer and employee, its actual assessment into monetary terms has raised endless disputes not alone by the employer.

NEED-BASED MINIMUM WAGE FORMULA:

Minimum wages for the average family will have to be based on requirements of food, clothing, housing and so on. Additional components of expenditure to cover for children's education, medical treatment, recreation, festivals and ceremonies.

In a vast country such as ours, there are bound to be regional variations in these requirements owing to climatic conditions, food habits, etc. At the same time in order to ensure a degree of uniformity the Conference have adopted a certain norms. The food component carries the largest- proportion of the total cost of living in a working class family. The component’s significance is not only economic but human also. On food depends the health and efficiency of the worker, which is vital to the industrial production. After a protracted discussion the Conference adopted Dr. Aykroyd's second dietary prescription of the adequate diet level, the other one being the optimum diet level. An optimum diet according to him, is one which ensures the functioning of the various life processes at their very best; whereas an adequate diet maintains these processes but not at their peak levels. The optimum diet would include more of vitamins and less of proteins in its caloric content, while the adequate diet would include more of proteins and less of vitamins.
The Committee on Fair Wages laid down that the standard working class family should be reckoned as one consisting of three consumption units, supported by a single male earner and including his wife and two children below the of age 14 The 15th Session of Indian Labour Conference approved that the wage should cover four categories of needs considered essential for the worker's well being, viz. food, clothing, housing and miscellaneous. In calculating the minimum wage, the norms for the food category should be based on Dr. W.B. Aykroyd's formula for an adequate and balanced diet. It thus came about that a wage linked to the needs was suggested as a desirable minimum.

Subsequently, when attempting to implement the recommendations of the conference, almost all the wage fixing authorities including the committees appointed under the Minimum Wages Act, 1948 have invariably faced difficulty in determining: (i) the calorific norm which should form the basis of the diet content (ii) the exact composition of the diet (iii) the qualities of the various items of diet and (iv) availabilities of food commodities consumed by the worker and his pattern of consumption. In this regard the first assault was launched by the II Central Pay Commission (1959), pertaining to the calorific norm as laid down by the 15th Indian Labour Conference. The Indian Labour Conference worked out the three-unit formula, the minimum wage is worked out taking into consideration the calorific value requirements of 2,700 each, certain length of cloth requirement, housing rental value, education and medical expenses etc.

CONCEPT OF LIVING WAGES:

Concept of Living Wages It represents a standard of living which provides not merely for bare physical subsistence but for maintenance of health and decency, a measure of frugal comfort, including education of children, requirement of essential social needs and a measure of insurance against eh more important misfortunes including old age. This is the ideal wages and envisaged in Article 43 of Directive Principles in Part IV of the Constitution. I. L. O. Conventions also provide for living wages.

Living wages is the ideal wages and on the line as stipulated in Article 43 of our Constitution. Wage differentials are necessary part of wage structure if skill formation is to be motivated and productivity is to be achieved but at the same time it should be reasonable.

Hence it is relevant to quote the following observation made by the Kerala High Court in Association of Planters of Kerala v State of Kerala in this regard:  A failure to fix or revise minimum wages was not only a statutory violation but is a breach of fundamental right enshrined in Art. 23 of the Constitution. A duty is cast upon the State by provisions of the Act and Article 23 to fix and revise the minimum rates of wages.

7th CPC REPORT PARA NO 4 HAS ALSO DEALT THE ISSUE OF A NEED-BASED MINIMUM WAGE TAKING INTO THE CONCEPT OF THE FOLLOWING.

a) Normative family is taken to consist of a spouse and two children below the age of 14. With the husband assigned 1 unit, wife, 0.8 unit and two children, 0.6 units each, the minimum wage needs to address 3 consumption units;

b) The food requirement per consumption unit is shown in the Annexure to this chapter. The specifications were derived from the recommendations of Dr. Wallace Aykroyd, the noted nutritionist, which stated that an average Indian adult engaged in moderate activity should, on a daily basis, consume 2,700 calories comprising 65 grams of protein and around 45-60 grams of fat. Dr Aykroyd had further pointed out that animal proteins, such as milk, eggs, fish, liver and meat, are biologically more efficient than vegetable proteins and suggested that they should form at least one-fifth of the total protein intake

c) The clothing requirements should be based on per capita consumption of 18 yards per annum, which gives 72 yards per annum (5.5 meters per month) for the average worker’s family. The 15th ILC also specified the associated consumption of detergents

d) The prescribed provision of Report of the Seventh CPC 63Index 25 percent to cover education, recreation, ceremonies, festivals and medical expenses has been reduced to 15 percent.

THE THREE-UNIT BASED FORMULA ADOPTED BY THE PAY COMMISSIONS NEEDS A CHANGE TO SIX UNITS DUE TO FOLLOWING FACTORS :

The three-unit based formula to fix minimum wages presently counts only four members of a family ie husband, wife and two children. It has no provision to count dependent parents, if any, or even if there are more than two children.

The three-unit formula gives the husband a full unit, wife 0.8 unit, and 0.6 units for each of the two children.
Now the trade unions and the employees associations are of the opinion that the three-unit system are not sufficient to decide minimum wages because the children continue to stay with the family for longer periods. The two children and wife should be accorded one single unit instead of 0.6 units,” also, marriageable age of a child has also increased and they should also be given full units, the gender equality should also be observed instead of 0.8 units it should be full unit for the spouse.

Hence should be revised to the four unit formula gives the husband a full unit, wife full unit, and full units for each of the two children.

After the 2010 Supreme Court ruling that dependent parents are to be taken care of by children, two more units should be added and the formula be based on six-unit formulae than three.
"The CrPC section 125 and Maintenance of Parents and Senior Citizens Act make it mandatory for an earning member to maintain his parents, failing which he/she may have to face penal consequences. Today, the average life span of a person has increased to 68.3 years compared to that of 41 years in 1957. Hence two additional units have to be added,"

So there is a need to hike number of units from three to six to calculate minimum wages.

OTHER FACTORS AFFECTING OUR WAGES ARE AS FOLLOWS:

1) The 7th CPC has taken into consideration the 15% to cover education, recreation, ceremonies, festivals and medical expenses against 25% prescribed by the Supreme Court. Additional components of expenditure to cover for children’s education, medical treatment, recreation, festivals and ceremonies. This followed from the Supreme Court’s ruling in the Raptakos Brett Vs Workmencase of 1991 for determination of minimum wage of an industrial worker. The Supreme Court had prescribed this amount at 25 percent of the total minimum wage calculated from the first five components.

2) Secondly the prices of essential commodities for calculation of the minimum wage is always a debate , the price essential commodities by the using Consumer Price Index for Industrial Workers maintained by Labour Bureau, Shimla and the retail prices are showing different rates , the retail prices of essential commodities are at higher end including that of state Government run co-operative society’s compared to the retail prices maintained by Labour Bureau, Shimla by more than 15%, that is the prices maintained by Labour Bureau, Shimla are lower by more than 15% compared to market prices , the CG employees are deprived of proper minimum wage by an extent of 25% . If proper retail prices are taken into account the minimum wage shall be more than Rs 26,000/- as on 1st Jan 2016.

THE PAYMENT OF WAGES ACT, 1936:

The revision of payment of wages act, 1936 , the Government has raised the monetary limit of wages to Rs. 24000/- per month for the applicability of the Act by issuing the notification .This calculation of Rs 24,000/ is based on Dr. W.B. Aykroyd’s formula. This is done on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organization.

The payment of wages act, 1936 monetary limit of wages to Rs. 24000/- per month is for unskilled worker , if we add Rs 25% for skilled worker , it work out at Rs 30000/- for skilled worker which includes wages and allowances, at present the Central Government employees at the initial stage are paid Rs 23,000/- (Rs 18,000/ as minimum wage and Rs 5,000/ as allowances ), still there is gap of Rs 7,000/ , if the minimum wage of Central Government employees is re fixed at Rs 22,000/ then this gap shall be reduced.
The breakup of the Central Government employee's salary is as follows.

Non Metro City
Minimum wage Rs 18,000/-
HRA Rs 1800/-
Transport allowances Rs 900/-
Children education allowances Rs 2250/-
Total Salary : Rs 22950/-

The Central Government employees are deprived of the actual minimum wage of Rs 26,000/-. Hence there is a need of revision of minimum wage from Rs 18,000/ as Central Government is a model employer.

Via : COC Karnataka

7th CPC Revised Allowances should be from January 2016 - NCJCM Staff side shares outcome of Standing Committee Meeting held on 3rd May, 2017

7th CPC Revised Allowances should be from January 2016 - NCJCM Staff side shares outcome of Standing Committee Meeting held on 3rd May, 2017

Shiva Gopal Mishra
Secretary
National Council (Staff Side)
Joint Council Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi-110001

No.NC/JCM/2017

Dated: May 5, 2017

All Constituents of NC/JCM(Staff Side)
Dear Comrades!

Sub: Proceedings of the meeting of the Standing Committee meeting of the National Council(JCM held on 03.05.2017 under the Chairmanship of Secretary (DoP&T)

Immediately after Introductory Remark of the Secretary(DoP&T), the Staff Side raised the following issues:-
For more than 7 years now the National Council(JCM) has not met. Functioning of the JCM is completely diluted by the Government Departments are also not holding meeting. The grievances on service matter of the employees are getting accumulated. The JCM Machinery needs to be strengthened and meeting with the Staff Side should take place regularly.

2.It is now more than 10 months after proposed "Indefinite Strike" was deferred by the Central Government Employees; based on the assurance given by the Group of Ministers. None of the demands is settled. "The Staff Side is in dark about the recommendations of the Allowance Committee". "While Pay Commission's report is put on the Public Domain after its submission to the government, why these reports are kept secret", the Staff Side asked.Since Allowances Committee report is considerably delayed the date of effect of the revised allowances should be w.e.f. 01.01.2016. The Staff Side has demanded that, Minimum Wage should be raised, Pay Matrix should also be revised, to recommend at least Minimum Guaranteed Pension of 50% of the last pay drawn, Family Pension, and Disability Pension and GPF to all the Central Government Employees. It is unfortunate that, Option No.1, recommended by the 7th CPC for pre-01.01.2016 Pensioners, is also rejected. The Central Government Employees are very much agitated and there is going to be an uncontrollable unrest, hence the Chairman is requested to convey our feelings to the government to avoid a confrontation

(Chairman intervened and assured that he would convey the feelings of the Staff Side to the government).
In spite of the Government orders many autonomous bodies have not revised the pay scale of the employees as per 7th CPC and no order is yet issued for revising the pension of the pensioners who retired from these autonomous bodies. These issues needs to be settled by the government.

4.Staff Side demanded to fill-up all the vacant posts and also to sanction additional posts to man additional assets and additional workload without insisting on Matching Saving.

Thereafter, Action Taken Report on the progress/decisions taken on the Agenda Points discussed during last Standing Committee Meeting was taken for discussion. Details are given below-

DISCUSSION ON ACTION TAKEN REPORT

1.No privatization PPP or FDI in Railways and Defence Establishment
The issue will be separately discussed by the Railways and Defence Ministry with the Recognized Federations.

2. No Corporatization of Postal Services
Department of Post informed that there is no proposal of Corporatization / privatization at this juncture.

3.Scrap PFRDA Act and reintroduce the Defined Benefit Statutory Pension Scheme
The Chairman stated that, we have to wait for the report of the NPS Committee. However, the Staff Side insisted that, there should be at least Guaranteed Minimum Pension of 50% of the last pay drawn, Family Pension, and Disability Pension.

4.Regularize the existing daily rated/casual and contract workers, and absorb trained apprentices. No labour reforms should be carried out which are not in the interest of workers.
After discussion it was decided that, specific cases, if referred to the DoP&T by the Department/ Staff Side, may be considered. The issue of Gun and Shell Factory Casual Employees would be considered in consultation with the MoD.

5.Revive JCM functioning at all levels as an effective negotiating forum for settlement of demands of the central government employees.
It was assured that JCM Machinery would be activated.

6.Remove the arbitrary ceiling on compassionate appointments.
The Staff Side demanded the following:-

• The arbitrary and artificial 5% ceiling may be removed.
• Pending the same the 5% vacancies should be calculated on the overall vacancies and not in the vacancies of the particular year.
• For calculation of vacancies Group B posts also should be taken into account.
• In the Defence Ministry wards of service personnel are given Compassionate Appointment in the 5% of Civilian Vacancies. However while calculating 5% vacancies, the vacancies of service personnel are not taken in to account. This anomaly may be rectified.
• Defence Ministry has proposed a onetime relaxation of 5% ceiling considering the large number of pending applications. TheDoP&T has rejected the same. The issue may be reconsidered by the DoP&T

After discussion on the above issues SecretaryDoP&T assured that he would reconsider the whole matter.
7.Ensuring Five Promotions in the Service Career
The Staff Side insisted that MACP should be in the promotional hierarchy and the condition of "Very Good" grading should be removed for granting of MACP.

8.Non-implementation of the decision taken in the 46th National Council (JCM) Meeting held on 15th May 2010 with regard to Item No. 20.
The Staff Side stated that in spite of the DoP&T's direction not to recognize Associations of "Workers", the Defence Ministry is not implementing the same. After discussion Secretary DoP&T assured that he would discuss the matter with the Defence Secretary and settle the same.

9.Reduction of one day Productivity Linked Bonus (PLB) to the employees of OFB & DGQA under Department of Defence Production against Cabinet decision and Government orders.
Staff Side protested against the arbitrary recovery of PLB days in the case of employees of Ordnance Factories, DGQA, DGAQA and EME. After discussion Secretary DoP&T directed the Department of Expenditure to reconsider the matter and if necessary to put up the case to the Finance Minister for his consideration.

10.Grant of one time relaxation to the Central Government employees who have availed LTC-80 and travelled by air by purchasing Ticket from other than authorized agent.
The Staff Side insisted that the employees who are otherwise not eligible for entitlement of air traveling, have purchased flight tickets from other than authorized agents due to their ignorance of rule position should not be punished by imposing recovery of the entire LTC amount etc. Therefore to settle the matter once for all a onetime relaxation may be given to such employees. After discussion it was decided that DoP&T may reconsider the whole matter.

11.Grant of House Rent Allowance to the employees who have vacated government quarters.
The Staff Side insisted that NAC should not be a pre condition for grant of HRA to those employees who vacate the government quarters. After discussion it was decided that the Directorate of Estate and Department of Expenditure would consider the matter.

12.Restoration of interest-free advances withdrawn by the Government based on 7th CPC recommendations.
The Official Side assured that, the demand of the Staff Side would be conveyed to the government.

13.Grant of entry pay recommended by 6th CPC to the promotees under the provisions of CCS(RP) Rules- 2008.
The Staff Side stated that the decision taken in the National Anomaly Committee meeting in this regard was not accepted by the finance ministry and at present the Principle Bench CAT New Delhi and the CAT Madras Bench has given judgment in favour of the employees and hence the Department of Expenditure may reconsider the matter. After discussion it was decided that the Department of Expenditure would reconsider the matter.

14.Grant of 3rd MACP in GP Rs.4600 to the Master Craftsmen (MCM) of Defence Ministry who were holding the post of MCM in the pre-revised pay scale of Rs.4500- 7000 as on 31/12/2005.
After discussion it was decided that DoP&T will refer the matter to Department of Expenditure recommending to reconsider their earlier decision of rejection since the demand is in conformity with the rules on ACP/MACP.

15.Carrying forward of Earned Leave by Defence Industrial Employees on transfer/ appointment from non Industrial to Industrial Establishment.
DOPT has agreed with the demand and their decision would be conveyed to MOD after receipt of the proposal from Defence Ministry in this regard.

16.Reimbursement of actual medical expenditure incurred by the employees in recognized hospitals.
CGHS rates are under revision and the same would be issued soon.

17.Dental Treatment in private hospitals recognized under CGHS / CS(MA) Rules, 1944 for CS(MA) beneficiaries.
CGHS vide their OM dated 5th April 2017 has informed that the requirement of no objection certificate has been dispensed with vide OM No. S.14025/41/2015-MS dated 7.12.2016.

18.Removal of ambiguity in fixation of pay of re-employed Ex-Servicemen and grant of the same benefit extended to Commissioned officers to personnel below officers rank also
The demand is under consideration ofDoP&T in consultation with the Department of Expenditure.

19.Permission to opt for pay fixation in the revised pay structure on a date after the date of issue of CCS(RP) rules 2016 notification (25.7.2016) in case of employees whose promotion becomes due after 25.7.2006.
The issue is under consideration of Department of Expenditure and a decision would be taken soon.

20.Fill up all vacant posts including promotional posts in a time bound manner.
DOPT is framing a fresh calendar for holding DPC and effecting promotions which will enable to fill up the promotional Posts in a time bound manner. Instructions will be issued very soon.

21.Abolish and upgrade all posts of Lower Division Clerks (LDCs) to Upper Division Clerks(UDCs)
The Staff Side demanded that the LDC post may be merged with UDC and MTS may be promoted directly to UDC. DoP&T agreed to consider the demand.
Due to paucity of time, new agenda points, given by the Staff Side, was not taken up for discussion. It was decided that the Action Taken on the New Agenda Points would be communicated to the Staff Side and a meeting would be thereafter convened to discuss these items.

Cabinet approves revision of pension to pre 2016 pensioners
The Cabinet approved modifications in the recommendations of the 7th CPC relating to method of revision of pension of pre-2016 Pensioners and Family Pensioners based on the suggestions made by the Committee, chaired by Secretary(Pensions), constituted with the approval of the Cabinet. While approving implementation of the 7th CPC recommendations on 29th June, 2016, the Cabinet had approved the changed method of pension revision recommended by the 7th CPC for pre-2016 pensioners, comprising of two alternative formulations, subject to the feasibility of the first formulation which was to be examined by the Committee. In terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as per the second formulation multiplying existing pension by a fitment factor of 2.57, though the pensioners were to be given the option of choosing the more beneficial of the two formulations as per the 7th CPC recommendations. In order to provide more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested revision of pension based on the information contained in the Pension Payment Order (PPO) issued to every pensioner. The modified formulation will be beneficial to more pensioners than the first formulation recommended by the 7th CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies.

Sincerely Yours
Sd/-
(Shiv Gopal Mishra)
Secretary (Staff Side)
National Council (JCM)

Source : NCJCM Staffside

Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2017

Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2017

DA Order Jan 2017 - Finmin Released Dearness Allowance Order

No. 1/3/2017-E-II(B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 30th March, 2017.

OFFICE MEMORANDUM

Subject : Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2017.

The undersigned is directed to refer to this Ministry's Office Memorandum No. 1/2/2016-E-II (B) dated 4th November, 2016 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 2% to 4% of the basic pay with effect from 1st January, 2017.

2. The term 'basic pay' in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).

4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of Tess than 50 paise may be ignored.

5. The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March, 2017.

6. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

7. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

(Nirmala Dev)
Deputy Secretary to the Government of India

DA Order Jan 2017

Government hikes minimum wage for agriculture labourer

Government hikes minimum wage for agriculture labourer

Bandaru Dattatreya-led labour ministry has nearly doubled the minimum wage for agriculture labourer including those hired on contract, barely six months after a significant increase in minimum wages for non-agricultural labourer. Centre had on August 1 last year raised minimum wage of non-agricultural workers by 42%.

According to a labour ministry notification, an unskilled agriculture laborer would be entitled to get a minimum wage of Rs 300 per day in C-category towns as against Rs 160 now while those in B and A category towns will get Rs 303 and Rs 333 respectively.

Like-wise semi-skilled workers will be entitled to a daily minimum wage of Rs 364, Rs 335 and Rs 307 in A, B and C-category towns while the skilled workers will be paid as high as Rs 395, Rs 364 and Rs 334 under the three town categories respectively. Highly skilled workers will get Rs 438, Rs 407 and Rs 364 in A, B and C-category towns.

Besides, the wage rates prescribed by state government, if higher than this, would prevail over the central government notified rates. "Where in any area the minimum rates of wages fixed by this notification are lower than the minimum rates of wages fixed by the state government for the employees of the aforesaid employments in relation to which the state government is the appropriate government, the rates of wages fixed by the state government shall in respect of these areas, be deemed to be the minimum rates of wages payable under this notification," it said.

The notification further said, "the minimum rates of wages include wages for weekly day of rest and are applicable to employees engaged by contractors also."

A–category states includes 17 big towns including metro cities while the remaining towns have been categorized under B-category while C-category towns include areas to which the Minimum Wage Act, 1948 is applicable.

Besides, the ministry has also notified minimum wages for mine workers in all categories and in this case also the minimum wages notified by state governments, if higher than the central wages, would prevail.

Henceforth, unskilled mine workers would get Rs 350 and Rs 437 per day for above ground and underground work while skilled workers will get Rs 436 and Rs 523 respectively and the skilled workers would be entitled to daily wage of Rs 523 and Rs 610.

Via: economictimes.indiatimes.com

Revision of NPS, Minimum Wage, Fitment Formula, Allowances and Pension - GS COC Karnataka

Revision of NPS, Minimum Wage, Fitment Formula, Allowances and Pension - GS COC Karnataka

"The Staff Side (JCM) had demanded the fitment formula of 3.72 that is Rs 26000/ Rs 7000 as on 1st Jan 2014. Whatever angle we look the 7th CPC has cheated us on the minimum wage and fitment formula compared to the earlier pay commission this pay commission has given us the lowest wage hike of just 14% compared to last 40 years."

16th March Strike Importance

Dear Comrades,
The main demands of the Staff Side (JCM) which led to declaration of the 11th July strike is the revision of the NPS, minimum wage, fitment formula, allowances and pension cases etc. this is due to lowest wage hike of just 14% recommended by the 7th CPC.

Under the 7th Pay Commission slab - which was implemented ten years after the previous pay commission the salaries of the government employees saw a marginal rise of just 14% . The basic pay under the 7th CPC the minimum wage was increased to Rs 18,000 from Rs 7,000 (2.57 times) while the salary of the senior government officials has gone up to Rs 2.50 lakh from Rs 90,000(2.77 times).

The minimum wage was increased by 2.57 times but in actual terms this increase is of just Rs 2250/- in 7th CPC, while taking into account of 125% DA was merged this due to rising inflation and price rise already the CG employees wage factor was 2.25 time, that is basic of Rs 7000/- plus DA of 125% of Rs 8750 works out to Rs 15750/- , staff side had already demanded for a hike of more than three times which is Rs 26,000 per month.

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

" The minimum qualification required at lower level appointments from the year 2008 has been revised from 8th pass to 10th pass (SSLC) as per the 6th CPC recommendations, hence the minimum wage should increase by 25% compared to earlier pay commissions.

The minimum wage has increased considerably due to price inflation from 4th CPC (1986) onwards the average wage hike is 3.32 times. During the period 1946 to 1972, the financial position of the Central Government was not that good. The financial position of the Central Government has been improving from the 4th CPC onwards that is from 1986 onwards, the pay fixation depends on the paying capacity of the Central Government. The revenue collection of the Central Government has increased especially from last few years. The revenue expenditure in respect of salaries of Central Government employees is just under 10% of the Central Government revenue. In respect of the many State Governments the revenue expenditure towards salaries is around 20%. Whereas the Central Government is spending just 10% of the revenue collection on salary head.

The wages of CG employees are determined based Dr. Aykroyd formula, the Staff Side (JCM) has calculated minimum wage as on 1st Jan 2014 as per the Dr. Aykroyd formula as Rs 26,000/- taking into market prices. Even if we adopt the retail prices of The Directorate of Economics & Statistics Department of Agriculture & Cooperation Ministry of Agriculture Government Of India New Delhi of the month of July 2016 the minimum wage works out to Rs 24,000/ which is 3.42 times increase. The 7th CPC has also adopted Dr. Aykroyd formula for the computation of the minimum wage and fixed at Rs 18000/- and thereafter the fitment formula is calculated.

CLICK HERE FOR MINIMUM WAGE DETAILS

Charter of demands - Deferment of "Strike Action" on Government's assurance

Charter of demands - Deferment of "Strike Action" on Government's assurance.  Resolve the 7th CPC related issues - mainly improvement of Minimum Wage and Multiplying Factor: NFIR writes to RM

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

No. IV/NFIR/7CPC(IMP)/2016/R.B.

Dated: 16/11/2016

Shri Suresh Prabhu,
Hon'ble Minister for Railways,
Rail Mantralaya,
New Delhi


Respected Sir,

Sub: Charter of demands - Deferment of "Strike Action" on Government's assurance-reg.


At the outset, NFIR conveys its thanks to the Hon'ble Railway Minister for his initiative which had culminated into a meeting with the Group of Ministers (Hon'ble Finance Minister, Home Minister, Railway Minister and the Minister of State for Railways) on 30th June 2016 and also a separate meeting with the Hon'ble Home Minister on 06th July 2016. Pursuant to the discussions in those meetings held between the NC/JCM (Staff Side) Leaders and the Hon'ble Ministers, an assurance was given by the Government on 6th July, 2016 that High Level Committee would consider 7th CPC issues - Minimum Wage and Multiplying Factor etc., for satisfactory settlement through discussions.

Federation is disappointed to mention that although a Committee headed by Addl. Secretary (Exp), Ministry of Finance, was constituted and a few meetings were held with us, there has been no satisfactory progress. The main issues - Minimum Wage and Multiplying Factors are continued unresolved. Due to procrastination of the matters, the Central Government employees in general and Railway employees in particular are seriously disappointed as they feel that the Government is not sincere to fulfill its assurances. The National Convention of NFIR held at Guwahati from 9th to 11th November, 2016 has expressed grave concern over non- fulfillment of assurance and decided to mobilize railway employees for sustained struggle.

NFIR, therefore, requests the Hon'ble MR to kindly apprise the disappointed feelings of the employees to the Hon'ble Prime Minister for his intervention to resolve the 7th CPC related issues - mainly improvement of Minimum Wage and Multiplying Factor through discussions with the Staff Side Federations very soon in order to preserve the healthy industrial relations in Railways.

Yours Sincerely,

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

Source : NFIR

NFIR Writes to PM on Minimum Wage and Multiplying Factor issues

NFIR Writes to PM on Minimum Wage and Multiplying Factor issues

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

7th Pay Commission Latest News – Minimum wage and Fitment formula

7th Pay Commission Latest News – Minimum wage and Fitment formula

The Staff side had demand of minimum wage of Rs 26000/- & fitment formula of 3.71 against 7th CPC recommendation of Rs 18000/- & fitment formula of 2.57.

7th Pay Commission Latest News – Confederation of Central Government Employees, Karnataka Branch analyses how 7th CPC minimum wage is fixed and why employees are on the losing side.

7th Pay Commission has adopted a formula for fixing the minimum wage and fitment formula in its recommendations. As per this recommendations Basic Pay in Central Government Service has been fixed as Rs. 18000 while highest pay has been fixed as Rs. 2,50,000. As far as existing employees are concerned, the a uniform multiplication factor of 2.57 has been arrived at which has to be multiplied with the existing basic pay of an employee to get the revised basic pay. However, Confederation of Central Government Employees reports that the prices for various essential commodities taken by the 7th Commission for arriving at minimum wage and fitment formula are on the lower side and consequently actual economic inflation in the past 10 years has not been factored in to the recommended 7th CPC pay and allowances.

The following is the analysis of Confederation of Central Government Employees and Workers, Karnataka Branch with regard to Minimum Wage and Fitment formula adopted by 7th Pay Commission.


Minimum wage and Fitment formula
Comrades,
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.

There are various reports on 7th Central Pay commission on the media reports on minimum wage of Rs 21000/- & fitment formula of 3.00, (which is at 34% wage hike against the 14% wage hike recommended by the 7thCPC).

The Empowered committee of Secretaries have not finalised any such minimum wage and fitment formula, the meeting is scheduled on 11th June 2016.

Please go through minimum wage as on 1/1/2016 using the prices as on 1/7/2015 of the Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi.
Sources website : http://rpms.dacnet.nic.in/QueryReport.aspx

Minimum Wage as per Government  Prices  as on 1/7/2015
Rice  fine/Wheat	42.75	32.45	1387.2375
Dal / Pulses	7.2	112.96	813.20
Raw Vegetables	9	112.96	1016.64
Green Vegetables*	11.25	26.78	301.275
Other Vegetables*	6.75	50	337.5
Fruits	10.8	45	486
Milk Dairy	18	97.92	1762.56
Sugar	5	41.85	209.25
Edible Oil	3.6	142.42	512.712
Fish	2.5	231.67	579.175
Meat Mutton	5	401.95	2009.75
Egg	90	4.68	421.2
Detergents*	1	250	250
Clothes	5.5	279.34	1536.37
Total			10809.6695
Housing @ 7.5%			810.65
Miscellaneous @ 20%			2161.93
Total			13782.2495
Additional @ 25%			3445
			17227.2495
Grand Total –
Minimum pay for unskilled worker in the erstwhile Group D			17227
Additional @ 25% for Group “C”			4306.75
Minimum pay for skilled worker in the erstwhile Group “C”			21533.75
Rounded off to Rs 22000/-
Add 6%  for DA = 125%  difference			646
Actual Minimum wage as on 1/1/2016			22179.75

We should add 10% for difference between retail price and Government rates.  It is clear that we should get minimum wage of Rs 24500 and fitment formula is 24500/ 7000 is 3.40 that is 50% wage hike .
The 7th CPC had provided wrong prices for example

Rice/Wheat Rs 25.93 per kg Dal (Toor/Urad/Moong) Rs 97.84 per kg.

If correct prices were adopted by the 7th CPC and correct methodology is adopted we would have got better minimum wage and fitment formula,

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.  Serve strike notice on 9th June 2016.

Comradely yours

(P.S.Prasad)

General Secretary

Source : http://karnatakacoc.blogspot.in/