7th CPC Report needs changes – Karnatakacoc Confederation

7th CPC Report needs changes – karnatakacoc confederation

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:

II CPC	14.2
III CPC	20.6
IV CPC	27.6
V CPC	31.0
VI CPC	54.0
VII CPC	14.27

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 theCommission
		Per day PCU	Unit	Per month 3 PCU	Unit	Price/ Unit	Expenses
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	2004.5
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)						9218
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
21	Sum (19+20)						16945
22	Housing @						524.07
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
26	Rounding off						18000

Minimum Wage as per Prices of Directorate of Economics & Statistics, Ministry of Agriculture

Prices as on 1/11/2015

tem		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
http://rpms.dacnet.nic.in/
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

Source : karnatakacoc