Minimum Pay & Multiplying Factor of 7th CPC – Submitted by IRTSA
INDIAN RAILWAYS TECHNICAL SUPERVISORS ASSOCIATION
(Estd. 1965, Regd. No.1329, Website http://www.irtsa.net )
No:IRTSA/CHQ / Memo CPC MF/2016-16
Additional Secretary (Expenditure),
Government of India,
For kind consideration of the Committee of Secretaries
– On Minimum Pay & Fitment Factor of 7th CPC
Subject: MINIMUM PAY & MULTIPLE FACTOR AFTER 7TH CPC
Also Read - Expected DA from January 2017
Also Read : Draft minutes of Allowance Committee – DOP&T Specific allowances
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 besdes 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 consumptio 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:
|Calculation of Minimum Pay as on 01.01.2016 for four consumption unit per family|
|1||Rice / Wheat||475||gm||57||kg||25.93||1478.01|
|13||Detergents etc||R s/month||388.41||388.41|
|16||Fuel, Electricity, Water Charges||3072.74|
|17||Total-(15) divided by 0.8||15363.71|
|18||Marriage, Recreation, Festivals, etc.||2711.24|
|19||Total-(17) divided by 0.85||18074.95|
|20||Provide for Skill by adding 25% to (19)||4518.74|
|23||Total-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|
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.
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