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Saturday, December 30, 2017

DA as on January 2018

ALL India Consumer Price Index Numbers for Industrial Workers - CPI(IW) for November 2017 Increased  by one point from 287  points to 288 points.


The DA as on November 2017 is 7.21%. The   Consumer Price Index Numbers for December is expected on Wednesday 31st January 2018, even if the CPI reduces or increase by 5 points , the DA for the January 2018 will remain at 7% .  That means increase of 2%DA is assured. 

Thursday, December 28, 2017

7th Pay Commission Expenditure on Wages


New Delhi, Dec 26: India spends around  Rs 10.18 trillion on salaries of the central and state government employees, including the amount spent on implementation of the 7th Pay Commission’s recommendations. This is a  8.15 per cent of the country’s GDP. The 7th Pay Commission to have cost the Center Rs 1.02 lakh crore against the Central Government revenue of about 20 lakh crore. 



Out of the total GDP of India amounting to 124.88 trillion, Rs 10.18 trillion is spent on paying salaries, according to a note submitted by the Department of Personnel and Training (DoPT) to a parliamentary panel. The report said the implementation of 7th Pay Commission‘s recommendations added just  extra 0.7 per cent burden on the GDP and a yearly burden of 102,000 crores. The salaries of 10 million central government employees account for 12.6 per cent of the central government’s total expenditure,  which is very minimal .



The government approved the 7th Pay Commission recommendations for its employees with higher minimum basic pay from Rs 7,000 to Rs 18,000 per month in June last year. The 7th Pay Commission had recommended a 14.27 percent hike in basic pay is  the lowest in 70 years. 





Friday, November 17, 2017

IMPORTANT



LATEST POSITION REGARDING MINIMUM PAY AND FITMENT FORMULA -- GOVT INFORMED STAFFSIDE NATIONAL COUNCIL JCM THAT INCREASE IN MINIMUM PAY AND FITMENT FORMULA WILL NOT COME UNDER ANOMALY COMMITTEE ITEM.

During the last 2 - 3 months both print and electronic media are continuously reporting that increase in 7th CPC Minimum Pay and Fitment Factor is under serious consideration of the Govt. and National Anomaly Committee will give its recommendation to Govt. and orders for increased Minimum Pay and Fitment Formula will be given effect from April 2018. We are reproducing below a letter from Govt. dated 30.10.2017 addressed to Secretary, Staff Side , National Council JCM  stating that the demand for increase in Minimum Pay and Fitment Formula will not come under the purview of National Anomaly Committee. Further Govt. has not yet constituted the HIGH LEVEL COMMITTEE for increasing Minimum Pay and Fitment Formula as assured by the Group of Ministers including Home Minister Sri Rajnath Singh, Finance Minister Shri Arun Jaitley on 30.06.2016. The so-called Senior Officers Committee has also not discussed this agenda even though staff Side has repeatedly demanded discussion and settlement as per the assurance given by Senior Cabinet Ministers. Now 17 months are over. 32 lakhs Central Govt. Employees and 33 lakhs Pensioners are being continuously betrayed by the NDA Govt.    



M. Krishnan 
Secretary General 
Confederation 
Mob. & Whats App:  09447068125


Thursday, November 2, 2017

Consumer Price Index & DA for September, 2017

The All-India CPI-IW for September, 2017 remained stationary at 285 (two hundred and eighty five). On 1-month percentage change, it remained static between August, 2017 and September, 2017.

DA as on September 2017 is 6.57 % 

Wednesday, October 18, 2017

Minutes of Standing Committee Meeting held on 3.5.2017 between NC JCM and Official Side – DoPT

MINUTES OF THE MEETING OF THE STANDING COMMITTEE HELD BETWEEN THE STAFF-SIDE, NATIONAL COUNCIL (JOINT CONSULTATIVE MACHINERY) AND THE OFFICIAL-SIDE UNDER THE CHAIRMANSHIP OF SECRETARY(P) AT 3.00 P.M. ON 03.05.2017 

CLICK HERE FOR DETAILS 

Saturday, September 30, 2017

Minimum wage and fitment formula hike issues

Comrades ,
                      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  

   


  

Thursday, September 21, 2017

LTC Clarifications on travel entitlements.

 Travel entitlements of Government employees for the purpose of LTC post Seventh Central Pay Commission-clarification.

CLICK HERE FOR ORDERS  

Wednesday, September 20, 2017

MEETING on 50th ANNIVERSARY OF SEPTEMBER 1968 STRIKE held on 20th September 2017 at Kendriya Sadan, Koramangala, Bangalore and Goa







At Goa 

LTC Orders

 Travel entitlements of Government employees for the purpose of LTC post Seventh Central Pay Commission-clarification reg.

CLICK HERE FOR LTC ORDERS 

Grant of Dearness Allowance to Central Government employees Revised Rates effective from 01.07.2017.

No.1/9/2017-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, the 20th September, 2017.
OFFICE MEMORANDUM
Subject: Grant of Dearness Allowance to Central Government employees Revised Rates effective from 01.07.2017.
***
The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1/3/2017-E.II(B) dated 30th March, 2017 on the subject mentioned above and to say that the President Is pleased to decide that the Dearness Allowance to Central Government employees shall be enhanced from the existing rate of 4% to 5% of the basic pay per month, with effect from 1st July, 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 less than 50 paise may be ignored.
5. 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.
6. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India.
(Nirmala Dev)
Deputy Secretary to the Government of India


Tuesday, September 19, 2017

Bonus Orders

Grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) to the Central Government Employees for the year 2016-17

Tuesday, September 12, 2017

Dharna Program at Bangalore on 20th September 2017


Minutes of COC Karnataka Meeting held on 08-09-2017

Dear Comrades, 
The COC Karnataka meeting was held on 08-09-2017.at City RMS at 7 pm.

Working President Com.P.S.Prasad,  presided over the meeting.  

                         The following points were discussed as per agenda:                              

1. Holding District level Dharna program at Kendriya Sadan, Koramangala, Bengaluru on 
20-09-2017, between 12-30pm to 2-30pm and at district places at respective Head Post Offices / Income Tax offices .           

 2. Proposed to Hold State level Dharna on 17-10-2017 at GPO, Bengaluru.                      

 3.Opening of new Account of COC, Karnataka at Karnataka Circle Postal Credit Co-operative Society Ltd.      

4.Registration of CoC Karnataka at Sub Registrar Office and preparation of relevant documents required to be made ready.                

  5. Comrade P.S.Prasad informed that the Confederation Leaders appreciated the COC Karnataka for conducting National Secretariat Meeting at ITEF in a grand manner. He also informed a resolution has to be submitted to the Confederation regarding holiday on 1st November on account of State formation Day of the State of Karnataka and to include the same in the Holiday List, as discussed in the National Secretariat Meeting.    

He also clarified regarding Gazette Notification of minimum wage act 1936 of Rs.24000 per month issued by the Government.    

The meeting also discussed the minimum wage issue and resolved to fight it for a justified minimum wage of Rs 26,000/-                            

Com.Vinod General Secretary COC Karnataka  appealed to all the affiliates to organize Sharma programme successfully to put forth pressure on the Govt. to achieve our just demands.    Comrades, we shouldn't be in sleep mode and we all should fight for achieving our charter of Demands.

The meeting it was also decided to print bilingual Posters in Kannada & English.                


Meeting concluded at 8.45 pm with vote of thanks from Com Ramakrishna Joint Secretary.
    .
                                                                                              Comradely yours

                                                                                                         (Vinod )
                                                                                                  General Secretary

Sunday, September 10, 2017

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.



                                             Issued by COC Karnataka