INDIAN RAILWAYS TECHNICAL SUPERVISORS ASSOCIATION
(Estd. 1965, Regd. No.1329, Website http://www.irtsa.net )
No:IRTSA/CHQ / Memo CPC MF / 2016-16
Date: 14-9-2016
Additional Secretary (Expenditure),
Government of India,
North Block,
New Delhi-110001
For kind consideration of the Committee of Secretaries
– On Minimum Pay & Fitment Factor of 7th CPC
Subject: MINIMUM PAY & MULTIPLE FACTOR AFTER 7TH CPC
Reference: i) Para 10.1.67 of Report of 7th Pay Commission
ii) Para 3 & 4 of Resolution No. 1-2/2016-IC dated 25-7-2016 of Govt of India on 7th CPC Report
We have to make the following submissions for the kind consideration of
the Committee for regarding Minimum Pay and Fitment / Multiplication
Factor:
1. MODIFICATIONS ACCEPTED BY SUPREME COURT & PRESENT DAY
REQUIREMENTS IGNORED BY 7TH CPC FOR DECIDING MINIMUM PAY BY Dr. W.
AYKROYED FORMULA
a) The Minimum Pay Fixed at Rs.18000 by the 7th CPC is very much unjust
and meager and ignores the accepted norms in this regard.
b) The Minimum wage of Rs.18000 proposed by 7th Pay Commission is based on Dr Aykroyed
formula for Minimum Need Based Wage which was adopted by 15th Indian
Labour Conference held in 1957. This needed to be updated as per present
day requirements. As per law of natural justice and as per directions
of the Supreme Court of India issued as long back as in 1991 in the case
of Reputekos Brett & Co. Vs Workers & others.
c) Prescribed provision of 25% to cover education, recreation, festivals
& medical expenses has been reduced to 15% by 7th CPC. Similarly
provision for housing has been reduced from prescribed 7.5% to 3% which
are totally inadequate, unjust and unrealistic..
d) In para 4.2.8, Step-1, 7th CPC indicated that a family is comprising
of three consumption units, as per norms set by 15th Indian Labour
Conference (ILC) in 1957.
e) Computing husband as one unit, wife as 0.8 unit and two children each
below the age of 14 as 0.6 unit is very much inadequate and 15th ILC
had not considered maintenance of aged parents.
f) Maintenance and Welfare of Parents and Senior Citizens Act, 2007 make
it a legal obligation for children and heirs to provide maintenance to
senior citizens and parents, by monthly allowance.
g) It is therefore, necessary that while calculating cost for
maintenance household the aged parents should also be considered as 2
Units besides the husband, wife, two Children as consumption units per
family and the same should be taken at least as four (if not five)
instead of three.
h) Dr. W. Aykroyd formula on food & other requirements and
associated requirements specified by 15th ILC shall be applied for 4 consumption units per family.
i) Minimum Pay works out to be Rs.24,000 (instead of Rs.18000
recommended by the 7th CPC) and the multiple factor 3.43 (instead of
2.57 recommended by the 7th CPC)
j) Table-1 of 7th CPC for calculation of minimum pay needs to be redrawn as under by keeping 4 consumption unit per family:
Table-1
Calculation of Minimum Pay as on 01.01.2016 for four consumption unit per family
| Per day PCU | Unit | Per month 4 PCU | Unit | Price/Unit \ R s. |
Expenses R s. |
|||
| 1 | R i ce/Wheat | 475 | gm | 57.00 | kg | 25.93 | 1478.01 | |
| 2 | Dal (Toor/Urad/Moong) | 80 | gm | 9.60 | kg | 97.84 | 939.26 | |
| 3 | R a w Vegetables | 100 | gm | 12.00 | kg | 58.48 | 701.76 | |
| 4 | G reen Vegetables | 125 | gm | 15.00 | kg | 38.12 | 571.80 | |
| 5 | Ot her Vegetables | 75 | gm | 9.00 | kg | 32.80 | 295.20 | |
| 6 | F ruits | 120 | gm | 14.40 | kg | 64.16 | 923.90 | |
| 7 | Milk | 200 | ml | 24.00 | l i t re | 37.74 | 905.76 | |
| 8 | Sugar/Jaggery | 56 | gm | 6.72 | kg | 37.40 | 251.33 | |
| 9 | E dible Oil | 40 | gm | 4.80 | kg | 114.02 | 547.30 | |
| 10 | Fish | 3.33 | kg | 268.38 | 894.60 | |||
| 11 | Meat | 6.67 | kg | 400.90 | 2672.67 | |||
| 12 | E gg | 120 | no. | 4.27 | 512.40 | |||
| 13 | D etergents etc | R s/month | 388.41 | 388.41 | ||||
| 14 | C l othing | 7.33 | m eter | 164.88 | 1208.57 | |||
| 15 |
T otal (1-14)
|
12290.97
|
||||||
16
|
F uel, Electricity, Water Charges
|
3072.74
|
||||||
17
|
T otal-(15) divided by 0.8
|
15363.71
|
||||||
18
|
Marriage, Recreation, Festivals, etc.
|
2711.24
|
||||||
19
|
T otal-(17) divided by 0.85
|
18074.95
|
||||||
20
|
P rovide for Skill by adding 25% to (19)
|
4518.74
|
||||||
21
|
Sum (19+20)
|
22593.69
|
||||||
22
|
H ousing @
|
698.77
|
||||||
23
|
T otal-Divide no.21 by 0.97
|
23292.47
|
||||||
24
|
Step up of 3% on No.23 as DA is projected at 125% on 01.01.2016
|
698.77
|
||||||
25
|
Final Minimum Pay as on 01.01.2016 (23+24)
|
23991.24
|
||||||
26
|
R ounding off
|
24000
|
||||||
2. MINIMUM PLUS DA WITH 40% FIXATION BENEFIT
a) 40% fixation benefit was given over 4th CPC scale to 5th CPC scale in general to all the scales.
b) 40% of maximum of 5th CPC scale was given over 5th CPC scale as fixation benefit in general in 6th CPC scales.
c) But, only 14.29% (i.e even less than 15%) of basic pay has been given
as fixation benefit is after the 7th CPC over 6th CPC pay, which is
grievously inadequate.
d) Table-2 given below gives the comparison on fixation benefit given after 6th CPC & after 7th CPC.
Table-2
| 5 t h CPC | 6 t h CPC | % increase from 5th CPC Pay + DA to 6th CPC Pay |
6th CPC Pay + 125% DA |
7th CPC Pay | % increase from 6th CPC Pay + DA to 7th CPC |
|||
| 5th CPC Pay |
5th CPC Pay + DA 86% |
PB__ | GP | 6th CPC Basic Pay |
||||
| 2750 | 5115 | PB-1 | 1800 | 7000 | 36.85% | 18000 | 14.29% | |
| 3050 | 5673 | PB-1 | 1900 | 7730 | 36.26% | 22050 | 19900 | 13.68% |
| 3200 | 5952 | PB-1 | 2000 | 8460 | 42.14% | 24507 | 21700 | 19.66% |
| 4000 | 7440 | PB-1 | 2400 | 9910 | 33.20% | 25389 | 25500 | 15.18% |
| 4500 | 8370 | PB-1 | 2800 | 11360 | 35.72% | 30996 | 29200 | 16.18% |
| 5000 | 9300 | PB-2 | 4200 | 13500 | 45.16% | 35186 | 35400 | 16.54% |
| 7450 | 13857 | PB-2 | 4600 | 17140 | 23.69% | 42525 | 44900 | 22.50% |
| 7500 | 13950 | PB-2 | 4800 | 18150 | 30.11% | 51314 | 47600 | 12.83% |
| 8000 | 14880 | PB-2 | 5400 | 21000 | 41.13% | 59063 | 53100 | 16.37% |
| 8000 | 14880 | PB-3 | 5400 | 21000 | 41.13% | 63882 | 56100 | 18.73% |
| 10325 | 19205 | PB-3 | 6600 | 25350 | 32.00% | 66150 | 67700 | 16.58% |
| 12000 | 22320 | PB-3 | 7600 | 29500 | 32.17% | 81302 | 78800 | 17.05% |
| 14300 | 26598 | PB-4 | 8700 | 46100 | 73.32% | 94248 | 118500 | 14.24% |
| 15400 | 28644 | PB-4 | 8900 | 49100 | 71.41% | 145215 | 131100 | 19.91% |
| 14300 | 26598 | PB-4 | 10000 | 53000 | 99.26% | 153059 | 144200 | 35.21% |
e) The Multiple Factor of 2.57 proposed by the Pay Commission for Pay
Fixation is totally unjust, inadequate and arbitrary especially keeping
in view the high inflation (in real terms and wage rise in the
organized sector including the PSUs after two revisions in PSUs since
the Sixth CPC. The Fixation Benefit needs to be at least 40% – as after
the last two Pay Commissions and the Common Multiple Factor may please
be fixed at least (Pay+DA) + 40% of Pay + DA, ie. 3.15 times of 6th CPC
basic pay.
Table -3 showing calculation of new pay which will be equal to Pay + Pay fixation benefit equal to 40% of 6th CPC Pay + DA
| 1 | M i n i mu m Pay (6 t h CPC) | 7000 |
| 2 | D A @ 125% | 8750 |
| 3 | Pay + DA | 15750 |
| 4 | Fixation benefit (40% of Pay + DA) & Proposed increase in real wage | 6300 |
| 5 | N ew Pay (3+4) | 22050 |
| 6 | Increase in basic pay (in Rs.) (5 – 1) | 15050 |
| 7 | No . of times increase in basic pay | 3.15 |
| 8 | Real wage no. of times increase | 1.40 |
k) Minimum Pay works out to be Rs.22,100 (instead of Rs.18000
recommended by the 7th CPC) and the multiple factor 3.15 (instead of
2.57 recommended by the 7th CPC)
3. MINIMUM PAY BY MERGER OF DA EVERY TIME THE DA RISES BY 50%
a) Merger of DA with Pay & Pension was always done every time the DA
crossed 50%, except after the Sixth Pay Commission and that norm
justifiably needs to be
restored.
b) Minimum Pay as on 1-1-2016 would be Rs.19,687 if DA was merged with
Pay when the DA crossed 50% (from 1-1-2011) and when it crossed 100%
even without any relief or fixation benefit of 7th CPC and the Minimum
Pay would bebRs. 22,483 or say 22,500 with 14.29% of total emoluments
Fixation benefit given by the 7th CPC (which itself was the lowest ever
after any CPC) – as per detailed calculations submitted below:
4. a) Minimum Pay after DA Merger at 50% & 100% and with 14.29% rise.
7000×1.5 = 10500 x 1.5 = 15750×1.25 = Rs.19687×1.1429 = 22500.272 or say Rs.22000
b) Fitment Factor after DA Merger at 50% & 100% and with 14.29% rise
= 22500 / 7000 = 3.21 times of BP
c) Even if the Merger of DA was done only once after it crossed 50% (on
1-1-2011), Minimum Pay as on 1-1-2016 would have been Rs.18375 (without
any relief or
fixation benefit of CPC) and Rs.20984 or say Rs.21000 with 14.2% Fixation benefit given by the 7th CPC as per details below:
d) Minimum Pay after DA Merger at 50% & 100% and 14.2% rise:
= 7000 x 1.5 = 10500 x 1.75 = 18375 x 1.1429 = Rs.21000.7875 or say Rs.21000.
e) Fitment Factor after DA Merger at 50% and 14.2% rise
21000 / 7000 = 3 times of BP
f) All the foregoing calculations of Minimum Pay and Fitment Factor are
linked to only 14.2% rise of wages as inherent in the recommendations of
7th CPC – which is the lowest ever rise after a Pay Commission in
recent years.
g) The minimum Pay may please be fixed as Rs.22500 and the multiple
factor for revision of Pay and Pension may please be fixed as 3.21.
4. It is, therefore, requested that, in view of above submissions:
a) Minimum Pay may please be fixed as Rs.24,000 and the multiple factor
3.43, by modifying Dr.W.Aykroyed Formula & 15th ILC norms by duly
taking into account Maintenance and Welfare of Parents and Senior
Citizens Act, 2007. (or)
b) Minimum Pay be fixed as Rs.22,100 and the multiple factor 3.15 by
giving 40% fixation benefit for the 6th CPC Pay & DA. (or)
c) Minimum Pay may please be fixed as Rs.22500 and the multiple factor
for revision of Pay and Pension may please be fixed as 3.21, by merging
the DA with Pay
whenever it crossed 50% with fixation benefit of 14.2% equitant to the rise recommended by 7th CPC.
Thanking you in anticipation,
Yours faithfully,
sd/-
Harchandan Singh,
General Secretary, IRTSA
Source : IRTSA
