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Sunday, January 5, 2014

7th CPC News - Minimum wage & Pay fixation forumala for 7th CPC worked out by COC Karnataka

7th CPC News - Minimum wage & Pay fixation forumala for 7th CPC worked out by COC Karnataka

Minimum wage & Pay fixation forumala for 7th CPC worked out

Providing proper minimum wage of Rs 27000/- for CG Employees including that of GDS employees and pay fixation formula for 7th CPC worked out .

Providing proper minimum wage of Rs 27000/- for CG Employees including that of GDS employees and pay fixation formula:

The staff side of the JCM had given representation demanding Rs 10,000/- as minimum wage for Central Government Employees. The 6th CPC in its report vide para no 2.2.15 had calculated a minimum wage of Rs 5478/- today if we are calculate the minimum wage it should be more than Rs 21,000/- apart from HRA and other allowances. Hence there is three times increase in actual prices calculated by the 6th CPC and the current prices. The current wages of the CG Employees should be doubled at least including that of GDS.
The most comprehensive criteria for covering all the basic needs were evolved by the 15th Indian Labour Conference (ILC) in 1957 for fixing minimum wages.
The norms are that a need-based minimum wage for a single worker should cover all the needs of a worker’s family consisting of a spouse and two children. The food requirement was to be 2,700 calories, 65 grams of protein and around 45-60 grams of fat as recommended by Dr Wallace Aykroyd for an average Indian adult of moderate activity. Dr Aykroyd 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.

Dr Aykroyd worked on nutrition for nearly 30 years and was director of the Nutrition Division, Food and Agriculture Organisation, United Nations. In 1935, he was appointed Director of the Government's Nutritional Research Centre in India, situated in Coonoor in the south. The 15th ILC further resolved that clothing requirements should be based on per capita consumption of 18 yards per annum, which gives 72 yards per annum for the average worker's family. For housing, the rent corresponding to the minimum area provided under the government's industrial housing schemes was to be taken. Fuel, lighting and other items of expenditure were to constitute an additional 20% of the total minimum wage.

The Supreme Court upheld these criteria in the case of Unichoy vs State of Kerala in 1961. In the later Raptakos Brett Vs Workmen case of 1991, the SC went one step further, and held that besides the five components enunciated by the 15th ILC, minimum wages should include a sixth component, amounting to 25% of the total minimum wage, to cover children's education, medical treatment, recreation, festivals and ceremonies. The SC also observed that a wage structure including the above six components would be “nothing more than minimum wage at subsistence level” which the workers must get “at all times and under all circumstances”.

Minimum Salary-Analysis &Recommendations para 2.2.15
The Commission, however, agrees that the norms set by the 15th International Labour Conference (ILC) are appropriate for computing minimum salary. It is also observed that the minimum salary is applicable at the time a person joins the Government which will usually be at a young age when a person may be just married and will not have responsibility of parents or many children. Accordingly, the family unit for minimum salary can only be taken as three.

The Minimum Salary should be based on 6 units not three units as per 6th CPC calculation. As both parents and two children are depending on the salary of Government servant apart from spouse. the additional burden the employees will carry after a few years of service as his parents would have retired from service and are wholly dependent on him also his children would have stepped into school / college level, even small baby requirements are much unlike in the past years, the hence the minimum wage he gets will not compensate with the family financial burden. Hence the whole calculations needs a undergo a drastic change in next CPC taking into account of 6 units rather than 3 units.  

The Sixth Central Pay Commission has recommended a minimum wage of Rs.6600/- per month against the demand of Rs.10,000/- per month as worked out by Staff side of JCM. Today the minimum need based wage works out to Rs.21,000/ per month+ HRA+ allowances. The general minimum expenses per month for a family of four members are as follows when a Government servant joins the duty with two small children: 

a.       Vegetables Rs.3000/-
b.      Food Grains/Groceries Rs.7000/-
c.       House rent single room Rs.6000/-
d.      Clothing Rs.3000/-
e.      Children education and their expenses Rs.2000/-
f.        Electricity chargers Rs.800/-
g.       Water charges Rs.250/-
h.      Transportation charges Rs.1000/-
i.         TV cable rent Rs.300/-
j.        Medical Expenses Rs.500/-
k.       Mobile expenses Rs.250/-
l.         Cooking Gas Rs.450/-
m.    Recreation charges Rs.500/-
n.      Personal expenses Rs.1000/-

Total Rs.26500/-Hence minimum wage works out to Rs.27000/-

The expenses will increase as the age of Government servant goes up and family responsibility will increase as he has to educate the children in professional courses, marriage of his children has to be performed, his medical expenses will increase, his parents will stay with him and now there are quite dependent on the Government servant for their lively hood. As such the salary should be more to meet his expenses. The Government is a model employer hence the wages should be provided with the needs.

Table: 

Fixation of Minimum wage as on 1.1.2006 as per 15 ILC norms as per Table 2.2.1 of the 6th compare minimum wage should be three times the 6th recommendations.

Items
Per day PCU (In grams)
Per month 3CU (In kg)
Price per kg. taken by 6th CPC (In Rs)
Total cost as per rates of 6th CPC (in Rs) As on 1/1/2006
Price per kg. as per prevailing market rates (in Rs) 1/6/13 At Bangalore
Total cost as per prevailing rates (in Rs) 1/6/2013
Rice/wheat
475
42.75
18
769.5
55
2351
Dal (Toor/ Urad / moong
80
7.2
40
288
80
576
Raw Veg.
100
9.00
10
90
60
600
Greenleaf Veg
125
11.25
10
112.5
40
400
Other Veg.
75
6.75
10
67.5
45
450
Fruits
120
10.80
30
324
80
864
Milk
200 Ml
18 Lt.
24.00
432
35
630
Sugar and Jaggery
56
5.00
24.00
120
45
225
Edible Oil
40
3.6
50
180
100
360
Fish
2.5
120
300
180
450
Meat
5.00
120
600
375
1875
Egg
90
02
180
04
360
Detergents etc
200
200
400
400
Clothing
5.5 Mt.
80/Mt
440
200
1100
Total
4103.5
10641
Misc. @ 20%*
827
2660
Total
4930.5
13301
Addl. Exp @ 25%**
400
3325
Total
5330.5
16626
Housing @ 10%***
148
600^
Grand Total
5478.5
17226

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 that is wife, husband and a child no parents or second child is taken into account.

* 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.

Total minimum wage is Rs.17225+ HRA Rs.7000/- + Transportation Allowance Rs.2500/-= Rs.26725 that is Rs.27,000/-.

The fixation of minimum basic pay of Rs.21000/- is taking into the account of minimum skill and education requirement as 10th Standard as prescribed by the 6th CPC. As the education requirement is more such as Diploma in Engineering or Degree in Science or Commerce, then the minimum basic pay should be Rs.40,000/- (8700+4200) X 3 = Rs.39,000/-. For Engineering Graduates and Master Degree it should be Rs.65,000/- .

The pay scales should start with a minimum basic pay including Grade Pay of Rs.21,000/- to end with 2, 10,000 with a ratio of 1:10 of minimum scale and maximum scale. Since government is a model employer they should provide minimum wages as per the 15 ILO conferences and other wages as per the educational qualification & skill requirement of the job.

The multiplying factor is calculated as below:

The existing basic pay + Grade pay + DA 100% + weightage of 100% (that is the difference between the actual price rise and the DA paid) that is the multiplying factor works out to three.
Note: The actual price rise is over 200% the DA is only 90%.

Or

The existing basic pay + grade pay+ DA 100%+DA merger = Net wage + weightage of 70% (that is the difference between the actual price rise and the DA paid).

The pay scales should have a multiplying factor of three, that means the existing pay scales and pay (basic pay + GP) should be multiplied by three. The pay scales arrived should not have any bunching of basic pay as done in the 5th there is no stagnation.

The concept of fair wages has been deprived to CG Employees. Usually pay commissions had adopted a multiplying factor of 3.2 to 3.8 to arrive at the new scales compared to earlier scales. But the VI CPC adopted conversion factor of about 2.6 at the lowest where as it was about 3.6 at the highest scale. By this method well established ration 1:12 between the lowest scale and highest scale was disturbed by the VI CPC.

The minimum pay & band pay fixed by the 6th compared all other pay commissions for example a new recruit for the post of LDC his pay is Rs.5200+ 1900 = Rs.7100/- + allowances, that should have been actually Rs.3050 multiplied by 3.6 times which works out to Rs.11000/- .

In case of a Graduate or Diploma holder as per 6th + 4200= Rs.13500/- + allowances, that should have been actually Rs.5000 multiplied by 3.6 times which works out to Rs.18000/- .

In case of a Master degree holder as per 6th 4800= Rs.14100/- + allowances, that should have been actually Rs.6500 multiplied by 3.6 times which works out to Rs.23000/- .
Hence the justification of multiplying factor of three is justified.
The Ratio between the lowest and highest scales should not more than 1:10


III PAY COMMISSION VS IV PAY COMMISSION GROUP D,C and B
S.N

III PAY COMMISSION PAY SCALES
IV PAY COMMISSION PAY SCALE
INCREASE(X) TIMES
1
a) 196-3-220-EB-3-232
750-12-870-EB-14- 940
3.8
b) 200-3-212-4-232-EB-4-240(SG)
2
a) 200-3-212-4-232-EB-4-240
775-12-955-EB-14-1025
3.8
b) 200-3-206-4-234-EB-4-250
3
a) 210-4-250-EB-5-270
800-15-1010-EB-20-1150
3.8
b) 210-4-226-EB-4-250-EB-5290
4
225-5-260-6-EB-6-308
825-15-900-EB-20-1200
3.7
5
260-326-EB-8-350
950-20-1150-EB-25-1400
3.7
6
a) 290-6-326-EB-8-350
950-20-1150-EB-25-1500
3.4
b)260-6-290-EB-6-326-8-366-EB-8-390-10-400
7
260-8-300-EB-8-340-10-380-EB-10-430
975-25-1150–EB-30-1540
3.7
8
330-8-370-10-400-EB-10-480
1200-30-1440–EB-30-180
3.6
9
a) 330-10-380-EB-12-500-EB-15-560
1200-30-1560-EB-40-2040
3.6
10
a) 380-12-500-15-530
1320-30-1560-EB-40-2040
3.5
b) 380-12-500-EB-15-560
11
a)380-12-440-EB-14-560-EB-20-640
1350-30-1440-40-1800-EB-50-2200
3.5
b) 425-15-530-EB-15-560-20-600
12
a) 425-15-560–EB-20-640
1400-40-1800-EB-50-2300
3.3
b) 425-15-500-EB-15-560-20-700
c) 455-15-560-20-700
13
a) 425-15-500-EB-15-560-20-640-EB-20-700-25-750
1400-40-1600-50-2300-EB-60-2600
3.3
b) 425-15-500-EB-15-560-20-700-EB-25-800
c)  470-15-530-EB-20650-EB-25-750
14
a)  550-20-650-25750
1600-50-2300-EB-60-2660
2.9
b) 550-20-650-25-800
15
a) 500-20-700-EB-25-900
1640-60-2600-EB-75-2900
3.1
b) 550-25-750-EB-30-900
16
a) 650-30-74035-800-EB-40-960
2000-60-2300-EB-75-3200
2.8
b) 650-30-740-35-880-EB-40-1040
c) 700-30-760-35-900
d) 775-35-880-40-1000
17
650-30-740-35-810-EB-880-40-1000-EB-40-1200
2000-60-2300-EB-75-3200-100-3500
3
18
a) 840-40-1040
2375-75-3200-EB-100-3500
2.8
b) 840-40-1000-EB-40-1200
19
a) 650-30-740-35-880-EB-40-1040
2000-60-2300-EB-3200-100-3500
3
b) 650-30-740-35-810-EB-35-880-40-1000-EB-40-1200


IV CPC PAY SCALES   VS V CPC PAY SCALES
FOURTH PAY COMMISSION PAY SCALES
FIFTH PAY COMMISSION PAY SCALES
INCREASE X TIMES
1
750-12-870-14-940
S-1
2550-55-2660-60-3200
3.4
2
775-12-871-14-1025
S-2
2610-60-3150-65-3540
3.3
3
800-15-1010-20-1150
S-3
2650-65-3300-70-4000
3.3
4
825-15-900-20-1200
S-4
2750-70-3800-75-4400
3.3
5
950-20-1150-25-1400 950-20-1150-25-15001150-25-1500
S-5
3050-75-3950-80-4590
3.2
6
975-25-1150-30-1540 975-25-1150-30-1660
S-6
3200-85-4900
3.3
7
1200-30-1440-30-18001200-30-1560-40-20401320-30-1560-40-2040
S-7
4000-100-6000
3.3
8
1350-30-1440-40-1800-50-2200 1400-40-1800-50-2300
S-8
4500-125-7000
3.3
9
1400-40-1600-50-2300-60-2600 1600-50-2300-60-2660
S-9
5000-150-8000
3.5
10
1640-60-2600-75-2900
S-10
5500-175-9000
3.35
11
2000-60-2120
S-11
6500-200-6900
3.25
12
2000-60-2300-75-3200 2000-60-2300-75-3200-3500
S-12
6500-200-10500
3.25
13
2375-75-3200-100-3500 2375-75-3200-100-3500-125-3750
S-13
7450-225-11500
3.13
14
2500-4000 (proposed new pre-revised scale)
S-14
7500-250-12000
3
15
2200-75-2800-100-4000 2300-100-2800
S-15
8000-275-13500
3.5
16
2630/- FIXED
S-16
9000/- FIXED
3.42
17
2630-75-2780
S-17
9000-275-9550
3.42
18
3150-100-3350
S-18
10325-325-10975
3.2
19
3000-125-3625 3000-100-3500-125-4500 3000-100-3500-125-5000
S-19
10000-325-15200
3.3
20
3200-100-3700-125-4700
S-20
10650-325-15850
3.32
21
3700-150-4450 3700-125-4700-150-5000
S-21
12000-375-16500
3.24
22
3950-125-4700-150-5000
S-22
12750-375-16500
3.22
23
3700-125-4950-150-5700
S-23
12000-375-18000
3.24
24
4100-125-4850-150-5300 4500-150-5700
S-24
14300-400-18300
3.4
25
4800-150-5700
S-25
15100-400-18300
3.1
26
5100-150-5700 5100-150-6150 5100-150-5700-200-6300
S-26
16400-450-20000
3.2
27
5100-150-6300-200-6700
S-27
16400-450-20900
3.2
28
4500-150-5700-200-7300
S-28
14300-450-22400
3.1
29
5900-200-6700 5900-200-7300
S-29
18400-500-22400
3.1
30
7300-100-7600
S-30
22400-525-24500
3
31
7300-200-7500-250-8000
S-31
22400-600-26000
3
32
7600/- FIXED7600-100-8000
S-32
24050-650-26000
3.1
33
8000/- FIXED
S-33
26000/- FIXED
3.2
34
9000/- FIXED
S-34
30000/- FIXED
3.3

Comparison of pay scales of the 4th CPC, 5th CPC and 6 CPC
Sl.No
4th CPC Pay scale w.e.f. 1.1.1986
5th CPC Post/Grade and pay scale w.e.f. 1.1.1996
6th Central Pay commission w.e.f. 1.1.2006 Corresponding
1
750-12-870-14-940
S-1
2550-55-2660-60-3200
-1S
4440-7440
1300
2
775-12-871-12-1025
S-2
2610-60-3150-65-3540
-1S
4440-74440
1400
3
775-12871-14-955-15-1030-20-1150
S-2A
2610-60-2910-65-3300-70-4000
-1S
4440-7440
1600
4
800-15-1010-20-1150
S-3
2650-65-3300-70-4000
-1S
4440-7440
1650
5
825-15-900-20-1200
S-4
2750-70-3800-75-4400
PB-1
5200-20200
1800
6
6950-20-1150-25-1400/950-20-1150-25-1500/1150-25-1500
S-5
3050-75-3950-80-4590
PB-1
5200-20200
1900
7
975-25-1150-30-1540/975-25-1150-30-1660
S-6
3200-85-4900
PB-1
5200-20200
2000
8
1200-30-1440-30-1800/1200-30-1560-30-1560-40-2040
S-7
4000-100-6000
PB-1
5200-20200
2400
9
1350-30-1440-40-1800-50-2200/1400-40-1800-50-2300
S-8
4500-125-7000
PB-1
5200-20200
2800
10
1400-40-1600-50-2300-60-2600/1600-50-2300-60-2660
S-9
5000-150-8000
PB-2
9300-34800
4200
11
1640-60-2600-75-2900
S-10
5500-175-9000
PB-2
9300-34800
4200
12
2000-60-2120
S-11
6500-200-6900
PB-2
9300-34800
4200
13
2000-60-2300-75-3200/2000-60-2300-75-3200-3500S-12
S-12
6500-200-10500
PB-2
9300-34800
4200
14
2375-75-3200-100-3500/2375-75-3200-100-3500-125-3750
S-13
7450-225-11500
PB-2
9300-34800
4600
15
2500-4000
S-14
7500-250-12000
PB-2
9300-34800
4800
16
2200-75-2800-100-4000/2300-100-2800
S-15
8000-275-13500
PB-2
9300-34800
5400
17
2200-75-2800-100-4000
NEW SCALE
8000-275-13500 (Group A Entry)
PB-3
15600-39100
5400
18
2630/-FIXED
S-16
9000
PB-3
15600-39100
5400
19
2630-75-2780
S-17
9000-275-9550
PB-3
15600-39100
5400
20
3150-100-3350
S-18
10325-325-10975
PB-3
15600-39100
6600
21
3000-125-3625/3000-100-3500-125-4500/3000-100-3500-125-5000
S-19
10000-325-15200
PB-3
15600-39100
6600
22
3200-100-3700-125-4700
S-20
10650-325-15850
PB-3
15600-39100
6600
23
3700-150-4450/3700-125-4700-150-5000
S – 21
12000-375-16500
PB-3
15600-39100
7600
24
3950-125-4700-150-5000
s-22
12750-375-16500
Pb-3
15600-39100
7600
25
3700-125-4950-150-5700
S-23
12000-375-18000
PB-3
15600-39100
7600
26
4100-125-4850-150-5300/4500-150-5700
S-24
14300-400-18300
PB-4
37400-67000
8700
27
4800-150-5700
S-25
15100-400-18300
PB-4
37400-67000
8700
28
5100-150-5700/5100-150-6150/5100-150-5700-200-6300
S-26
16400-450-20000
PB-4
37400-67000
8900
29
5100-150-6300-200-6700
S-27
16400-450-20900
PB-4
37400-67000
8900
30
4500-150-5700-200-7300
S-28
14300-450-22400
PB-4
37400-67000
10000
31
5900-200-6700/5900-200-7300
S-29
18400-500-22400
PB-4
37400-67000
10000
32
7300-100-7600
S-30
22400-525-24500
PB-4
37400-67000
12000
33
7300-200-7500-250-8000
s-31
22400-600-26000
Hag+scale
75500-80000
Nil
34
7600/- FIXED/7600-100-8000
S-32
24050-650-26000
HAG+SCALE
75500-80000
NIL
35
8000/- FIXED
S-33
26000 (FIXED)
APEX SCALE
80000 (FIXED)
NIL
36
9000/-
S-34
30000 (FIXED)
CAB.SEC.
90000 (FIXED)
NIL


SIXTH CPC PAY STRUCTURE
PROJECTED PAY STRUCTURE FOR NEXT (VII) PAY COMMISSION
Name of Pay Band/ Scale
Corresponding Pay Bands
Corresponding Grade Pay
Entry Grade +band pay
Projected entry level pay using uniform multiplying factor` 3’
Band Pay
Grade Pay
Entry Pay
PB-1
5200-20200
1800
7000
15600-60600
5400
21000
PB-1
5200-20200
1900
7730
15600-60600
5700
23190
PB-1
5200-20200
2000
8460
15600-60600
6000
25380
PB-1
5200-20200
2400
9910
15600-60600
7200
29730
PB-1
5200-20200
2800
11360
15600-60600
8400
34080
PB-2
9300-34800
4200
13500
29900-104400
12600
40500
PB-2
9300-34800
4600
17140
29900-104400
13800
51420
PB-2
9300-34800
4800
18150
29900-104400
14400
54450
PB-3
15600-39100
5400
21000
29900-104400
16200
63000
PB-3
15600-39100
6600
25530
46800-117300
19800
76590
PB-3
15600-39100
7600
29500
46800-117300
22800
88500
PB-4
37400-67000
8700
46100
112200-20100
26100
138300
PB-4
37400-67000
8900
49100
112200-20100
26700
147300
PB-4
37400-67000
10000
53000
112200-20100
30000
159000
HAG
67000- (ann increment @ 3%) -79000
Nil
201000
HAG+ Scale
75500- (ann increment @ 3%) -80000
Nil
226500
Apex Scale
80000 (Fixed)
Nil
240000
Cab. Sec.
90000 (Fixed)
Nil
270000

The existing basic pay should be multiplied by factor three, so that there is no bunching of basic pay. The existing GP of Rs2000/- and Rs2800/- should be removed. Likewise there are GP of Rs5400/- in both PB-2 and PB-3 one of them is to be removed.
There are 34 scales recommended by the 6th CPC, out of which four grade pay has been not in existence, as such 30 GP are right now available.
With the merger of pay scale form S9 to S12 into Grade Pay of Rs 4200/-
There are many pay scales which was merged into single GP of Rs4200/- which has created anomalies, the promotions have been made in same grade pay without financial benefits.
There should be time scale rather than grade pay system, these time scales should long enough.


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