LETTER FROM ACS COM. U M MHASKAR IN C/W SUGGESTIONS ON 7TH PAY COMMISSIONS RECOMMENDATIONS. 

No. R-III/M H CIRCLE/7^TH CPC/2015                                                05.12.2015

                                                                

                                                                   Com. U M Mhaksar, ACS, MH Circle

To

1.   Com. R N Parashar. Secretary General.

2.   Com. Giriraj Singh General Secretary.

Sub. Suggestions in respect of recommendation of 7th pay commission.

Respected Comrade,

Kindly refer the letter on even subject written by my colleague and presently off. Circle Secretary Com. A B Shivtare. I would like to further elaborate in connection with the same subject the following for your kind consideration and effective representation at the meeting dated 08.12.2015.

Comrade the minimum wage as per computation works out to Rs.20,861/-. This must be the minimum wage for the unskilled worker as per the ILC norms. In Central Government employment presently there are no unskilled labour. The lowest level of employment is multi-skilled worker/employee as designated by 6th CPC.  The minimum educational qualification for the same prescribed is either ITI or matriculation (10th Standard). The percentage increase of the wages of a skilled worker to that of an unskilled worker on an average had been more than 25% all throughout (2440-3050=610 i.e. 25% of Rs. 2440) It is therefore necessary to add 25% to arrive at the minimum pay for the lowest employee in Government service, which comes to Rs. 26,075/- , i.e. Rs. 26,000/- when rounded off. While computing the minimum wage, we have gone strictly as per the norms prescribed by the 15th ILC. However, we must state that the three units norm for the family prescribed by Dr. Aykroyd in the present situation is far below the requirement. The Indian family consists of not only husband, wife and two children but invariably includes the parents of the head of the family. In Indian conditions, they totally depend upon the earning employee. If we factor two more units for the family concept, the minimum wage so worked out will increase by two third. In quantum terms, the pay at the lowest level of the Central Government will then be Rs. 43330.

The Minimum Wages Act, 1948 has not laid down the criteria for fixing the minimum wages in India, though it specifies the procedure for doing so.
Instead, the norms recommended by the Indian Labour Conference, held in 1957, are taken into account while fixing the minimum wages. These are as follows:
3 consumption units for one earner: In calculating the minimum wage, the standard working class family should be taken to comprise three consumption units for one earner, the earnings of women, children and adolescents in the family being disregarded.

Minimum food requirements of 2700 calories per average Indian adult: Minimum food requirements should be calculated on the basis of a net intake of 2700 calories for an average Indian adult of moderate activity, as recommended in 1948 by Dr. Wallace Akroyd, first director of the Department of Nutrition at Food and Agricultural Organisation (FAO). Clothing requirements of 72 yards per annum per family: Clothing requirements should be estimated on the basis of a per capita consumption of 18 yards (16.5 meters) per annum, which would give for the average worker’s family of four a total of 72 yards (65.8 meter). Rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme: In respect of housing, the norm should be the minimum rent charged by Government in any area for houses provided under the Subsidised Industrial Housing Scheme for low – income groups. Fuel, Lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage.

Therefore in addition to the demands cited in first paragraph the following needs to be taken into consideration. 20% of the net minimum miscellaneous charges towards fuel, electricity, water charges, etc Housing at the rate of 7.5% of net minimum Addition Expenditure at the rate of 25% includes expenditure towards education, marriage etc of the children, Medical treatment, recreation, festivals etc. as per the Supreme Court decision in 1991. Incidentally, we may mention that the minimum wages at the level of an unskilled worker as per recent wage agreement in Coal India Ltd. Is Rs.29697/-. The per-capita Net National Product increase at factor cost between - (2004-05 - 2011-12) years as per the Economic Survey for 2012-13 presented to Parliament is 57.55..%. The exact figures for the years 2012-13 and 2013-14 is not available from official websites. These figures are needed to arrive at a percentage of increase for the last 10 years. On the basis of the present data, the increase registered in quantum terms will work out to Rs. 22857, which is more than the minimum wage computed as per the 15th ILC norms.

For the reasons stated in the preceding paragraphs and more specifically for the reason that this recommendations will be for the Government Servants for his pay for the next 10 years it is requested to take up with the 7th CPC through DOP to recommend the minimum pay to be assigned to the lowest level of Group C in Government of India service at Rs. 26,000/- with multiplication factor above

The 6th Central Pay Commission, in its recommendations, introduced the concept of Multiplication Factor. The Multiplication Factor was fixed at 1.74 in the recommendations of 6th CPC. The Commission had also explained how the number was arrived at. But the Central Government chose to change it to 1.86. One of the reasons for this modification was the intense pressure from various Federations of Central Government Employees.

First we should know about the fixation of 1.74

Basic Pay on 1.1.2006 = ‘1’

50% DA Merger = ‘0.5’

Dearness Allowance (24%) = ‘0.24’

Total = ‘1.74’ (1 + 0.5 + 0.24)

And what basis the Central Government changed as 1.86?

Let us assume the Basic Pay, as of 01.01.2006, as 100%. Let’s take the Dearness pay (post the 50% DA Merger) as 50%.

If you add Basic Pay and Dearness Pay and calculate 24% of it,

then you’d get 36%. (100 + 50 = 150 / 24 x 100 = 36)
100% + 50% + 36% = 186%

This number is being taken for calculations as 1.86.

We have also adopted the same method here including the weightage of Dearness Allowance is providing on Transport Allowance…

Basic Pay = 1.0

DA on 1.1.2016 (125% – Including July 2015 & Jan 2016) For 100% = 1.0 & For 25% (1.0 + 1.0 = 2.5 x 20%) = 0.5

Transport Allowance Weightage (DA 125%) = 0.36 (Approximately)

Total = 1.0 + 1.0 + 0.5 + 0.46 = 2.86

Therefore it is requested to take the following into consideration while demanding the multiplication factor.

Regarding the demands specific to the Department of Post my colleague Com. A B Shivtare has covered almost all the aspects. But I would like to more specifically add the following for kind consideration and effective representation.

1. Mechanism should be introduced to strengthen CGHS and AMA and cashless treatment should be introduced to all government servants.

2. Minimum 2 increments should be granted on promotion to LSG HSG II and HSG I.

3. Mailguards are promotional posts and qualifying in its exam is a must therefore they should be placed at par with new recruit GR C SA as there work is equivalent to Mail Agent.

4. Extending of Children Education Allowance upto Post Graduation at any cost considering the educational requirements of open markets.

5. HRA should be doubled whenever DA reaches 50 percent considering the sky rocketing prices of real estate and rental rates and proposed smart cities.

6. Higher Educational Advance to employees whose childrens takes up higher studies.

7. Overtime Allowance should be atleast at par with the minimum wages fixed for the particular state/city.

8. Increase in CL from 8 to 12.

9. Increase in EL Ceiling from 300 to 450.

10. Increase in Paternity Leave from 15 to 30.

11. HBA should be 50 times of the basic pay or 50 lakhs or anticipated price of the house whichever is less.

12. Finalise cadre restructuring before implementation of 7th pay commission.

13. Lift ceiling on compassionate appointments.

I hope you will find the same illustrative and helpful for discussion. Looking forward for positive developments from the meeting.

Revolutionary greetings,

Yours comradely

-sd

Umesh M Mhaskar 
ACS M H Circle 
Mumbai.