7th CPC Report needs changes – karnatakacoc confederation
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:
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.
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)|
|Dal (Toor/ Urad / moong)||80||7.2||65||468||40||288|
|Milk||200 Ml||18 Lt.||24||432||24||432|
|Sugar and Jaggery||56||5||24||120||24||120|
|Detergents etc||300 P/m||300||200||200|
|Misc. @ 20%*||1167.6||827|
|Addl. Exp @ 25%**||1751.4||400#||400#|
|Housing @ 10%***||973||^148|
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 theCommission|
|Per day PCU||Unit||Per month 3 PCU||Unit||Price/ Unit||Expenses|
|16||Fuel, Electricity, Water Charges||2304.5|
|17||Total-(15) divided by 0.8||11522|
|18||Marriage, Recreation, Festivals, etc.||2033.4|
|19||Total-(17) divided by 0.85||13556|
|20||Provide for Skill by adding 25% to (19)||3389|
|23||Total-Divide no.21 by 0.97||17469|
|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)||17993|
Minimum Wage as per Prices of Directorate of Economics & Statistics, Ministry of Agriculture
Prices as on 1/11/2015
|in Kgs/ mt|
|Rice Super fine/Wheat atta||42.75||44.25||1891.6875|
|Housing @ 7.5%||850|
|Miscellaneous @ 20%||2268|
|Additional @ 25%||3615|
|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.
Source : karnatakacoc