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Thursday, November 19, 2015

7th CPC Report needs changes

Comrades,
                  The 7th CPC has submitted its report to the Government of India and the expectations of the employees of the Central Government are not in lines of the recommendations of the 7th CPC at many places the existing allowances have been decreased or abolished totally.  The rate of HRA is also reduced to 24% , 16 and 9%.  

                 The main demands of the employees are not considered which include five promotions scheme. Only positive in these reports are parity in pension, retention of DA formula and removal of grade pay system.  The same amount of transport allowance and tour TA/DA is existing; here also there is no change. 

               The major disparity is in the case of minimum wage and fitment formula here the 7th CPC has erred in its calculations and adoption of  Dr. Aykroyd formula and 15th ILO norms instead of fixing minimum wage at Rs 23,000/ it has fixed at Rs 18,000/-, There by the fitment formula instead of 3.25 is at 2.57 thereby the wage hike should have been by 30% , now its is only 14.27 %.

The following table shows the real increase given by each CPC/Government over the previously set minimum pay:

( in percent)
II CPC14.2
III CPC20.6
IV CPC27.6
V CPC31.0
VI CPC54.0
VII CPC14.27



This is the lowest percentage of increase compared to all pay commission report. 

                  The prices from Consumer Price Index for Industrial Workers maintained by Labour Bureau, Shimla is taken instead of Directorate of Economics &  Statistics, Ministry of Agriculture  here the prices are much higher than the  Labour Bureau, Shimla. The 6th CPC has taken average of retail prices and the Government prices, This methodology has also not been adopted.   

                 Secondly the 6th CPC had aslo adopted  Dr. Aykroyd formula and 15th ILO norms the 7th CPC has modified that formula this has also resulted in wrong fixation of the minimum wage.

The 6th CPC minimum wage fixation is given below.

Table 2.2.1
Fixation of Minimum wage as on 1.1.2006 as per 15 ILC norms
Items
Per day PCU
Per month 3CU
Price per kg. taken by Staff Side
Total cost as per Staff Side
Price per kg. as per prevailing rates
Total cost as per prevailing rates
(In grams)
(In kg)
(In Rs)
(In Rs)
(In Rs)
(In Rs)
Rice/wheat
475
42.75
22
941
18
769.5
Dal (Toor/ Urad / moong)
80
7.2
65
468
40
288
Raw Veg.
100
9
28
252
10
90
Greenleaf Veg.
125
11.25
24
370
10
112.5
Other Veg.
75
6.75
26
176
10
67.5
Fruits
120
10.8
50
540
30
324
Milk
200 Ml
18 Lt.
24
432
24
432
Sugar and Jaggery
56
5
24
120
24
120
Edible Oil
40
3.6
90
324
50
180
Fish
2.5
180
450
120
300
Meat
5
180
900
120
600
Egg
90 (no)
2.5
225
2
180
Detergents etc
300 P/m
300
200
200
Clothing
5.5 Mt.
80/Mt.
440
80/Mt.
440
Total
5838
4103.5
Misc. @ 20%*
1167.6
827
Total
7005.6
4930.5
Addl. Exp @ 25%**
1751.4
400#
400#
Total
8757
5330.5
Housing @ 10%***
973
^148
Grand Total
9730
5478.5



Source : Average market rates in Kolkata, Chennai, Delhi and Mumbai as indicated in the Economic Times & other major dailies (element of 20% has been added to cover the increase in cost in retail sale).
Notes     PCU  =  Per  day Consumption Unit          3CU = Three Consumption Units
*      20% Miscellaneous charges towards fuel, electricity, water etc.
** Additional Expense at the rate of 25% includes expenditure towards education, medical treatment, housing, recreation, festivals etc.
# Has been taken as Rs.400 because separate allowances for education, medical treatment and housing exist in the Government. Consequently, only the expenditure towards recreation & festivals need to be taken in account.
^ Being the license fee chargeable for government accommodation at an average rate of 3% of the basic pay

   The 7th CPC fixation is also given below

Calculation of Minimum Pay as on 01.01.2016 by the Commission
Price/ Unit ()
Per day PCU
Per month 3 PCU
Expenses ()
Unit
Unit
1
Rice/Wheat
475
gm
42.75
kg
25.93
1108.3
2
Dal (Toor/Urad/Moong)
80
gm
7.2
kg
97.84
704.44
3
Raw Vegetables
100
gm
9
kg
58.48
526.28
4
Green Vegetables
125
gm
11.25
kg
38.12
428.85
5
Other Vegetables
75
gm
6.75
kg
32.8
221.42
6
Fruits
120
gm
10.8
kg
64.16
692.93
7
Milk
200
ml
18
litre
37.74
679.26
8
Sugar/Jaggery
56
gm
5.04
kg
37.4
188.48
9
Edible Oil
40
gm
3.6
kg
114.02
410.46
10
Fish
2.5
kg
268.38
670.95
11
Meat
5
kg
400.9
2004.51
12
Egg
90
no.
4.27
383.98
13
Detergents etc
/month
291.31
291.31
14
Clothing
5.5
164.88
906.83
15
Total (1-14)
9217.99
16
Fuel, Electricity, Water Charges
2304.5
17
Total-(15) divided by 0.8
11522.49
18
Marriage, Recreation, Festivals, etc.
2033.38
19
Total-(17) divided by 0.85
13555.87
20
Provide for Skill by adding 25% to (19)
3388.97
21
Sum (19+20)
16944.84
22
Housing @
524.07
23
Total-Divide no.21 by 0.97
17468.91
24
Step up of 3% on No.23 as DA is projected at 125% on 01.01.2016
524.07
25
Final Minimum Pay as on 01.01.2016 (23+24)
17992.98
26
Rounding off
18000
Minimum Wage as per Prices  of  Directorate of Economics &  Statistics, Ministry of Agriculture 

Prices  as on 1/11/2015
Item
Per Month
Average
Amount
3 units
Rate
in Kgs/ mt
Rice Super  fine/Wheat atta 
42.75
44.25
1891.6875
Dal 
7.2
151.87
1093.464
Raw Vegetables
9
30.47
274.23
Green Vegetables*
11.25
40
450
Other Vegetables*
6.75
40
270
Fruits
10.8
68.87
743.796
Milk Dairy
18
38.16
686.88
Sugar
5
31.75
158.75
Edible Oil
3.6
136.71
492.156
Fish
2.5
433.81
1084.525
Meat Mutton
5
447.18
2235.9
Egg
90
4.89
440.1
Detergents*
1
300
300
Clothes
5.5
240
1320
Total
11341.4885
Housing @ 7.5%
850
Miscellaneous @ 20%
2268
Total
14460
Additional @ 25%
3615
18075
Grand Total -
Say Rs 18,000/-
Minimum pay for unskilled worker in the erstwhile Group D
18000
Additional @ 25% for Group "C"
4518
Minimum pay for skilled worker in the erstwhile Group "C" as per Govt Prices
22593
Source : http://rpms.dacnet.nic.in/Bulletin.aspx
Add 10% for retail price diffrence
2300
Actual Minimum wage
25,000


 Hence it is quite clear that the minimum wage calculation and fitment formula needs relook. Also the allowances rates should be increased.


Comradely yours  


(P.S.Prasad)
General Secretary 



              

15 comments:

Ranjeet Kumar said...

Also The Military Service Pay is having so much of disparity between Jawans and Officers. One Jawan is drawing 5200 and Officer is 15600. Heavy disappointment.

Is there that the bullet distinguish when it hit a soldier or an Officer. Is this the analysis they have done for the last two years.

PANKAJ JAYANTIBHAI PATEL said...

i ma working as postal assi. about 6 years of service . my present basic pay 11510 and total pay 28102 and as per revise calculation my new pay is 33768 , so i am only gettting 5500 increse( including DA FROM JAN) . Commision has racommanded to deduct CGEIS contubution of 1500 monthly and deduction of CPF will be 600 more than present . in this condition in view of total increse of 5500 but also increse deduction of 2100 . hence i will get benefite of about 3000 only. this is totally unjustify . it is not more than 1 year increment and DA. It's a totally disappointed.

vasu gowda said...

Totally we should tell as dabba commission justice A K Mathur prepaired report in faour of Govt side not from employyees. time is coming for rise our voice against govt

Unknown said...

This 7cpc could not exercise properly, it is very irresponsible commission a small example in this false reort: A fresh 7000/- (PB 5200/- + GP 1800/-) employee house taking pay (without HRA ) if having govt. Quarter is gets raise only rs 104/- from Jan 2016 salary . Because govt recoveries is raise i.e CPF and CGEIS is rs 870/- to 3660/- in this case cpc is not implement he is getting rs 320/- more due new DA Jan 16. How to accept this type recommendations.

Kinkar said...

My current GP is 1900 and TA 1600+DA(1904) = 3504. but as per 7th CPC recommendation the new TA stands at 1350+DA(0)=1350. Please rectify the anomaly before government notification. A large amount of employee will face the same problem.

SUNIL MM said...

Grade pay is still the deciding factor even though it is abolished. The anomalies in grade pay system is just carry forwarded. What an injustice. The arrived new basic pay is just a magic number. Some may get more advantage when it is rounding up to next slot.

laxman phadte said...

Why u need 20 month for these recommendations I can do this in 5 days no change retained abolished

Sanjeev Singh said...

7CPC is the most irresponsible commission. lots of irregularities are there. dont know what they had done in last 20 months. I can say that if they only write about their recommendation then the report will be of 05 pages. About pesion for civil employees they had given an illustration of ABC whose pension Basic Rs 39500/- than actullay ABC is now on date getting pesion of ( 39500*0.6 + 39500*125%) i.e Rs 73075 per month in hand. But after implementation of 7CPC as per their illustration he will got (Rs 1,01,515*0.6 + 1,01,515*0%)= Rs 60,909 in hand on 31.01.2016. How will we accepct this recommendation.

Mahesh said...

Very pathetic nd really disgusting for LDCs and UDCs. We are really very disappointed.Pathetic commission.

Mahesh said...

Very pathetic nd really disgusting for LDCs and UDCs. We are really very disappointed.Pathetic commission.I am thinking of joining the private sector again.

Krishna Kumar said...

It is not wonder that the 7th PC attracts more vituperative comments than encomiums, thanks to the erroneous decision by a Judge, who is supposed to weigh two sides. I have almost finished reading the entire report wherein the Chairman never gave any thought for employees representation; he simply dismissed anything favourable for employees as not justified; what sort of justification he expected god only knows; The main fact is that there was no one representing the employees cause through union leaders or members. Now the employees are paying the price.
A careful perusal of the report shows his leniency towards the govt. than to the woes of the employees; what is the logic behind abolishing the interest free allowances when previous panels never touched them? The govt. before implementing should carefully analyse these factors and make such modifications as to benefit the employees. Justice has been completely denied by a Judge, a model commission. Hats off to the bureaucrats who clamoured their own interests than those of the employees serving under them.All c.g.. employees are requested from now onwards to stand united for a prolonged struggle to oppose this ; Instead of implementing in a hurry to attract vote banks, the BJP govt. should appoint a committee, as in the case of 6th CPC, and invite the representations from the unions or in the presence of one member from each union and sort out the anamolies which has crept now itself in this report. ZINDABAD, ZINDABAD, INCULAB ZINDABAD!!!!!

Amol Akash said...

सरकारी कर्मचारी को १० साल में केवल यही एक ऐसा मौका है जिसके द्वारा वह अपने जीवन यापन के स्तर में सुधार लाने की कोशिश कर सकता है।।
सरकार यह भी मौका हमसे ना छिने एसी उम्मीद हम सभी केन्द्र सरकार से करते हैं।।
हम सभी कर्मचारी ही सरकारी योजनाओं को आम आदमी तक पहुंचने की कड़ी हैं कृपया इसे कमजोर ना होने दें।।

nupur raghav said...

How can be expect a chairman to do justice, who can not control the commission members. When pay matrix will used for fixation, I suspect there will be lot of confusion in fixing the pay of different people in same grade pay. Sixth commission was quite professional in its approach they hired IIM A FOR different studies and then gave recommendations and UNDER the leader ship of Dr Manmohan Singh government was liberal and mature enough to understand the problems of the government employees. I am sure given the track record of present dispensation... The recommendations will be anti employees.
Furthermore , we should also note that in its report , commision at one hand acknowledges that number of central government employees per 100000 citizens is much less than the employees per 100000 citizens in USA . EVERYBODY curses the government employees for poor delivery , corruption etc., but no one recognises the fact tha government employees work under the rules meant for controlling them. These rules are not enabling . Developed countries have more government employees tha indian government , despite having efficient processes, systems and best technology for delivery.
government employees in India are delivering without proper training, systems and enabling atmosphere. The only problem is that we are not in position to hire consultants , who can debate for us on TV channels. Ask the multinational who work in the remotest places to create infrastructure so that these MNC can move. Whenever everybody fails why government employees are deployed to deliver and these poor government employees deliver even there also.
At last we all should realise that we must stand up united ly for our rights.And pay commission and government should also realise that "IF YOU WILL OFFER PEANUTS, YOU WILL GET MONKEY LIKE PERFORMANCE ONLY"
please give government employees their due and one can not generalise the all government employees as black sheeps. Every system , even in private and top MNC , has few black sheeps. So please do not generalise.

Nagesh Pallaki said...

This pay commission recommendation does not require twenty months time. Such Recommendations can be given in five minutes.I do not know how a retired judge has done injustice to employees. The prices taken from in arriving at minimum wage are far from reality. The commission Recommendations should go to WPB. Ji hind.long live employees unity

Nagesh Pallaki said...

This pay commission recommendation does not require twenty months time. Such Recommendations can be given in five minutes.I do not know how a retired judge has done injustice to employees. The prices taken from in arriving at minimum wage are far from reality. The commission Recommendations should go to WPB. Ji hind.long live employees unity