Tuesday, August 29, 2017

Recommendations of the 7th Central Pay Commission (CPC) - bunching of stages in the revised pay structure under Central Civil Services (Revised Pay) Rules, 2016 : DoP Order

Minimum wage should not have been less than Rs.19670 – Multiplication factor 2.81

Shiva Gopal Mishra

Ph: 23382286 
National Council (Staff Side)
Joint consultive machinery
for central government employees
13-C, Ferozshah Road, New Delhi — 110001 
E Mail : nc.jcm.np@gmail.com

No.NC-JCM-2017/7thCPC / Fin 
14,August 17

The Additional Secretary,
(Sh. Pramod Kumar Das)
Government of India,
Department of Expenditure,
Ministry of Finance,
North Block, New Delhi

Dear Sir,
We write this with reference to the discussions the staff side had with you on 21st July, 2017 when the official side explained the various recommendations of the Allowances Committee and the Government’s decisions thereon. It is however, our considered opinion that the said allowances committee did not consider various submissions made by the Staff side both orally and in writing especially on those allowances, which has a universal application. Had it been really addressed, the reduction in the transport allowance in the case of employees in the lower strata of hierarchy would not have happened. No justification had been advanced by the 7th CPC for the reduction of the House rent allowance rates by a universal 0.8 factor. The Committee has also not enlightened us as to how the said factor had been applied while making cosmetic changes in the rates. The Committee did not consider the following glaring and untenable and incorrect conclusions of the 7th CPC despite that the Staff Side pointed out it in their written submissions.

(I) The house rent allowance is one such allowance which is not cost indexed. As on 1.1.2016, the date on which the pay was revised, the DA stood at 125%. What justification could be offered to reduce the rates by 0.8%is inexplicable. By deferring the date of revised allowance by 18 months, i.e. with effect from 1.7.2017, the Government has enormously gained financially. The actual financial outflow on account or the revision of pay and allowances has thus become less than even what was projected by the 71h CPC. The Committee should have known that on all previous occasions, where the date of effect of pay and allowances had differed, the Govt. had granted Interim Relief and merger of DA. No such decision had been taken by the Government, prior to the setting up of the 7th CPC. Even the precedence on which the committee wrongly relied upon, had been set aside by the Board of Arbitration, not once but twice.

(ii) The cosmetic changes effected in the rates of HRA which is published to have benefited about 7.5 lakhs employees is not correct but exaggerated.

(iii) The Committee’s decision to retain some of the department specific allowances was on the suggestion made by the concerned heads of The Staff side view had not been considered at all.

(iv) The Pension committee’s recommendation to reject Option No. 1 on the ground of infeasibility is further reflective of the attitude of the Government towards the employees and pensioners.

On 30th June, 2016 the staff side had a meeting with the group of Ministers headed by Shri Rajnath Singh, the Honorable Home Minister, when an assurance was held out to revisit the computation of the Minimum wage and multiplication factor. We were informed that the Committee headed by you would consider as to how the assurance could be implemented. Despite three rounds of meeting with you, nothing tangible in this regard has happened. In our earlier submissions, we had pointed out with facts and figures as to how the 7th CPC erred in their computation of the Minimum wage and how could never be less than Rs.26000 as on 1.1.2016. We are afraid that the repetition thereof would not serve any purpose. However, as desired by you, we give hereunder certain glaring, iniquitous and unjustified factors, the rectification of which could be the least the Government could do while revisiting the computation of Minimum wage and multiplication factor.

Aykhroyd formula does not speak of any averages. The commodity prices of a particular date is to be taken into account for the computation of minimum wage as on that date. Since the pay is cost indexed, the fluctuation in prices of commodities in future is taken care of by grant of dearness allowance. The 7thCPC took the average prices of various commodities between 1.7.2014 to 30.6.2015to compute the minimum wage. This is clearly impermissible. If this error alone is set right, the minimum wage shall work out at Rs. 19294 and the MF at 2.76 (See Annexure 1 ) 

The 7th CPC reduced the housing component by 4.5%. This was in line with the computation formula adopted by the 6tth CPC. Such reduction on the specious plea that Central Government employees are given HRA separately was ostensibly incorrect as the quantum of HRA provided for is insufficient to meet the expenses incurred by an individual employee for hiring an accommodation. The point however, we would like to mention is that the 7th CPC did not notice that the 6th CPC had increased / retained the rate of HRA whereas the 7th CPC for no valid reason reduced all the three rates by a uniform factor of 0.8. The said decision reduced the HRA in metro cities by 6% in classified cities by 4% and in unclassified towns by 2%. Averaging out to 4%. It must be in the fitness of things, that the unwarranted reduction of housing component is restored especially in the background of the Allowance Committee refusing to restore the erstwhile rates. The computation of the minimum wage if this correction is carried out would be as in annexure 2. The minimum wage would then work out to Rs. 20232 and the multiplication factor at 2.89. This is when the commodity price is taken not as the average for 12 months but the actual price as on 1.7.2015. 

The Honourable Supreme Court had directed that 25% must be added to arrive at the actual minimum wage in order to enable the employees to meet out various social obligations. Children education was on of the minor components of the social obligations mentioned by Supreme Court. When the Supreme Court delivered its verdict, education in the country was in the public domain and was almost free Hp to the secondary level. The advent of the neo liberal economic policies, imparting education to the children has become one of the costly affairs. The reduction effected by the 7th CPC to the extent of 10% attributable to children education is totally unjustified and in our opinion even amounts to non adherence to the supreme Court directive in the matter. If this error is rectified, the Minimum wage would be Rs. 21873 (ME 3.12) , the commodity prices being Rs. 9885 (actual as on 7,2015) and would be Rs. Rs. 20391 if computation is done on the basis of the average of the commodity prices as was done by the 7thCPC. The MF In the said two cases would be 3.124 and 2.913 respectively. (See annexure 3 and 3A). 

The 7th CPC has adopted the family at 3 Units. This is no doubt in consonance with Dr. Aykhroyd formula. The family is taken consisting of husband, wife and two children, value assigned being 1+,0.8,+0.6,+0.6. In the present day society to assign a lower value for women is a misplaced and outdated notion. The gender equality demands that the family unit must be taken at 3.2. ( 1+1+0,6+0.6) Two workings are given in Annexure 4 and 4A. In annexure 4 commodity price is what it should be i.e. the actual prices as on 1.7.2015 and in annexure4 A the same is what is taken by the 7th CPC. The minimum wage in Annexure 4 shall be Rs. 19981 (MF2.94) and in the latter case the MW shall be Rs. 19193 and the MF at 2.74) Please see annexure 4 and 4A for detailed working. 

The 6th CPC while formulating the Pay band and Grade pay system had applied varying multiplication factors to create the four pay bands. They had relied upon the same argument that the skilled workers are entitled to have better pay packets than the unskilled or semi skilled labourers. The 7th CPC has advocated the same theory to apply varying Multiplications factors for creating pay levels. The successive application of different multiplication factors has disturbed the vertical relativity and if this theory is perennially adopted in the construction of pay scales the present equilibrium will be drastically altered. The ratio between the minimum and maximum pay in Government sector has been widening ever since tie 5th CPC recommendations were adopted. The 7th CPC has relied upon the private sector wage pattern for justifying this practice. On quite a number of occasions, the previous Pay Commissions had advocated against the wage determination in Government and Public Sector on the basis of the fair wage comparison with the private sector as the functions and assigned responsibilities and objectives are essentially incomparable. Large scale contractorisation and outsourcing have already come into stay in Governmental organizations with consequent suppression of wages at the levels of semi skilled and unskilled levels. We are not presently on the ethical aspect of this unfair practice, which a welfare Government ought not have indulged in. We are to state that by application of different multiplication factors (i.e. Upto pay level 5 =2.57, pay level 6-9=2.62,Level 10-13A=2.67, Level 14-16 =2.72,Level 18=2.78 and level 17=2.81. By applying the multiplication factor at 2.81 for the Secretary level officers, the 7th CPC tacitly admitted that the minimum wage should not have been less than Rs. 19670. (i.e. 2.81 x 7000 = 19670) In this connection we would also like to bring to you notice that the Government has now unilaterally altered the multiplication factor and Pay matrix in respect of Level 13 from 2.57 to 2.67. Assigning a lower multiplication factor to the officers of level 13 appears to be a conscious decision of the 7th CPC as the Government’s executive order in 2008 to place the staid level of officers at a higher level had disturbed the then existing vertical relativity in the Governmental hierarchy. It is, therefore, the considered opinion and suggestion of the staff side that the Government must come forward to apply the uniform multiplication factor of 2.81 at all levels both for the construction of the pay levels as also for the pay fixation in the new Pay levels for the existing employees. If our suggestion is accepted, the Minimum wage would be raised to Rs. 19670 with the multiplication factor at 2.81. 

We request you to kindly convene a meeting of the staff side to cause discussions on the above submissions and arrive at a mutually acceptable conclusion.

Thanking you,
Yours faithfully,
Shiv Gopal Mishra.
Annexure 1
1Commodity prices as on 1.7.2015 (actual)9885-00
2Misc: 20%2471
3 12356-00
4Social obligations: 15% as taken by 7 cpc2180
5 14536
6Conversion of unskilled into semi skill category.25%3634-00
7 18170-00
8Housing 3% as adopted by 7 th CPC562-00
9 18732-00
10Updating to 1.1.20p16 as per 7 cpc formula 3%562-00
11Total: Minimum wage as on 1.1.201619294-00
12Multiplication factor2.76
Annexure 2
 Commodity prices as on 1.7.2015 (actual)9885-00
2Misc: 20%2471
3 12356-00
4Social obligations: 15% as taken by 7 cpc2180
5 14536
6Conversion of unskilled into semi skill category.25%3634-00
7 18170-00
8Housing 7.5% as per formula1473
9 19643 - 00
10Updating to 1.1.20p16 as per 7 cpc formula 3%589-00
11Total: Minimum wage as on 1.1.201620232-00
12Multiplication factor2.89
Annexure 3
1Commodity prices as on 1.7.2015 (actual)9885-00
2Misc: 20%2471
3 12356-00
4Social obligations: 25% as per formula4119-00
5 16475
6Conversion of unskilled into semi skill category.25%4119-00
7 20593-00
8Housing 3% as per 7 th CpC638
9 21231-00
10Updating to 1.1.20p16 as per 7 cpc formula 3%637-00
11Total: Minimum wage as on 1.1.201621873-00
12Multiplication factor3.124
Annexure 3A
1Commodity prices as taken by 7cpc (average)9218-00
2Misc: 20%2305-00
3 11523-00
4Social obligations: 25% as per formula3841-00
5 15364
6Conversion of unskilled into semi skill category.25%3841-00
7 19205-00
8Housing 3% as per 7 th CPC593
9 19798 - 00
10Updating to 1.1.20p16 as per 7 cpc formula 3%593-00
11Total: Minimum wage as on 1.1.201620391-00
12Multiplication factor2.913
Annexure 4
1Commodity prices as on 1.7.2015 (actual)=9885. Converted into 3.2 family units10544-00
2Misc: 20%2636
3 13180-00
4Social obligations: 15% as per 7 th CPC1 2326-00
5 15506
6Conversion of unskilled into semi skill category.25%3876-00
7 19382-00
8Housing 3% as per 7 th CPC599
9 19981-00
10Updating to 1.1.20p16 as per 7 cpc formula 3%599-00
11Total: Minimum wage as on 1.1.201620580-00
12Multiplication factor2.94
Annexure 4A
1Commodity prices as on 1.7.2015 (average as per 7cpc)=9218. Converted into 3.2 family units9832-00
2Misc: 20%2459
3 12291-00
4Social obligations: 15% as per 7 th CPC2169-00
5 14460-00
6Conversion of unskilled into semi skill category.25%3615-00
7 18075-00
8Housing 3% as per 7 th CpC559
9 18634-00
10Updating to 1.1.20p16 as per 7 cpc formula 3%559-00
11Total: Minimum wage as on 1.1.201619193-00
12Multiplication factor2.74
Source – http://confederationhq.blogspot.in

Monday, August 21, 2017

AIPEU Gr C & AIPEU Postman & MTS will participate in the one day strike dated 23.08.2017

A strike meeting was held at PRC, Phulbani on 21.08.2017. It was unanimously decided that both the AIPEU Gr C & AIPEU Postman & MTS will participate in the one day strike dated 23.08.2017

7th Pay Commission: Lower Pay Not To Root Out Corruption

New Delhi: Corruption is rampant in many of the central government’s offices, despite Prime Minister Narendra Modi’s warning that corruption was eating away at India “like a termite”.

FM Arun Jaitley finally decided not to give any facility to central government employees better than the 7th Pay Commission recommendations.

Accordingly, the government should consider to root out corruption in the Indian bureaucracy and the official system through ensuring the proper wages and benefits for government employees.

The 50 lakh central government employees are now getting 14.27 % hike in their basic pay under the recommendation of the 7th Pay Commission, which is the lowest in 70 years.

The previous 6th Pay Commission had recommended a 20 per cent hike in the basic pay, which the government doubled while implementing it in 2008.

The 7th Pay Commission slashed down House Rent Allowance (HRA), which constitutes a substantial part of central government employees’ salaries. The Commission had recommended HRA at the rate of 24 per cent, 16 per cent and 8 per cent of basic pay of the central government employees and the government stuck with the 7th Pay Commission’s recommendations on HRA and gave nod accordingly.

While The previous 6th Pay Commission had recommended HRA at the rate of 30 per cent, 20 per cent and 10 per cent for X, Y and Z category of cities respectively.

The hike in HRA, which gives more money in the pockets of the employees, that’s compensatory perks for all central government employees, which has been paid from July 1 and no arrears for any allowance was paid, as per usual practice, the allowances are paid from the date of implementation.

The allowances, including House Rent Allowance (HRA) rates, started to disburse from July 1, this year, while, the 7th Pay Commission award was implemented from 1 January 2016.
There had been widespread demand from central government employee unions to hike HRA at the rate of 30 per cent, 20 per cent and 10 percent of basic pay and to be given arrears on allowances including HRA.

“The demands of central government employees over their pay scales as well as minimum pay and allowances are likely not to be considered by the National Anomaly Committee on behalf of the government,” the finance ministry sources said.

“Finance Minister Arun Jaitley finally decided not to give any facility to central government employees better than the 7th Pay Commission recommendations and the government stuck with the 7th Pay Commission recommendations on pay scales and allowances,” the sources added.

The central government employees unions had also demanded for hiking minimum pay Rs 18,000 to Rs 26,000 and asked to raising fitment factor 3.68 times from 2.57 times, which was implemented 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.

The minimum pay and allowances should be hiked for central government employees immediately by the government on the acceptance of the unions’ proposals.

Such a move would help to start countering the criminally extortionate mind-set which embeds corruption in many government posts as a way of mitigating low wages. Better-paid staff are more motivated in performing their jobs well and in working to root out corruption.

Implementing such an approach to government employees salaries has been shown to work very well in countries such as Singapore. If we are to emulate this here, the government also needs to take a more rational approach to managing is resources.

This would allow the government to pay, recruit, and retain higher quality government officials and begin to root out corruption and poor quality in public services, once and for all

Introduction of another Standarized Uniform Savings Bank Passbook (SB5A) for TD, NSC and KVP Accounts to issued by CBS and non CBS Post offices


National Federation of Postal Employees (NFPE) and All India Postal Employees Union-GDS (AIPEU-GDS) have jointly given a call for nationwide one day strike on 23-08-2017.  About five lakhs Postal and RMS employees including Gramin Dak Sevaks (GDS) and Casual, Part-time Contingent and Contract workers will participate in the strike.  The main demands of the strike are filling up of all vacant posts, Grant of Civil Servant status to GDS and implementation of positive recommendations of Kamalesh Chandra Committee Report on GDS, Regularisation of Casual, Part-time Contingent and Contract Workers and payment of revised wages, implementation of Cadre Restructuring of all cadres with modifications suggested by staff side, withdraw contributory Pension Scheme etc.
        Confederation National Secretariat calls upon all affiliates and C-O-Cs to extend full support and solidarity to the Postal Strike and to hold demonstrations in front of major offices of the Department of Posts on 23-08-2017 ie. the strike day.
                                                                                               M. Krishnan,
                                                                                         Secretary General,
                                                                            Mob & Whats App- 09447068125
                                                                           Email: mkrishnan6854@gmail.com

Friday, August 18, 2017



1.    Filling up of all vacant posts in all cadres of Department of Posts i.e. PA, SA, Postmen, Mailguard, Mailmen, MTS, PACO, PASBCO, Postal Accounts and GDS.

2.    Implementation of positive recommendations of GDS committee Report. Grant of Civil Servant status to GDS

3.    Membership verification of GDS and declaration of result of regular employees membership verification.

4.    Stop all types of harassment and victimization in the name of new schemes and technology induction and under contributory negligence factor and Trade Union victimization.

5.    Payment of Revised wages and arrears to the casual, part-time, contingent employees and daily rated mazdoors as per 6th& 7th CPC and settle other issues of casual labourers.

6.    Stop Privatization, Contractorization and outsourcing.

7.    Implement cadre Restructuring for leftout categories i.e. RMS, MMS, PACO, PASBCO, Postmaster Cadre Postal Accounts etc. and accept the modifications suggested by Federation before implementation of cadre restructuring in Postal Group ‘C’.

8.    Provision of CGHS facilities to Postal Pensioners also as recommended by 7th CPC.

9.    Withdraw NPS (Contributory Pension Scheme). Guarantee 50% of last pay drawn as minimum pension.

10. Implement five days week working for operative staff in the Postal department.

Recommendations of the 7th CPC - Implementation of decision relating to the grant of Children Education Allowance.

SB Order 09/2017 : Operational Guidelines for CBS Post Offices handling Post Office Savings Bank related work