Saturday, June 8, 2013

Justification of Demand of Seventh Pay Commission & Merger of Dearness Allowance

Justification of Demand of Seventh Pay Commission & Merger of Dearness Allowance

An informative article regarding justification of demand of early setting up of Seventh Pay Commission and Merger of DA in Basic Pay published by General Secretary, Confederation of Central Government Employees and Workers Karnataka States.  The text of the article reproduced below:-

               Confederation of Central Government Employees and Workers have been demanding constitution of the 7th CPC, DA merger , and other 15 charter of common demands of the Central Government Employees apart from 48 common demands of the CG Employees which has been accepted by the Kolkatta conference.

      The Common questions & answers which the Government of India has been  answering is that as follows.
1) The 6th CPC has not recommended the DA merger has recommended 25% increase in certain allowances.
2) The 6th CPC has not recommended the constitution of the 7th CPC and is silent on this issue.
3) Normally it takes 10 years to set up another Central Pay Commission.
4) The DA as recommended as per the Consumer price index is released which works out to 80% as on 1/1/2013. So when ever the prices have gone up DA is provided to compensate the rising of prices.
5) If another Central Pay Commission is set up there will be huge burden on common man, at this stage the Government of India cannot afford to set up 7th CPC
6) The anomalies  are being taken up the National anomalies committee
Now comrades the above reply are standard in nature, all the above questions are answered in the following text.


If we really look at the DA and the Cost of living we can  find that the actual cost of prices have gone up over 200% and the actual DA we are getting is only 80%. Hence there is a big gap between the actual price rise and the real DA we get there are many factors behind it, hence 7th CPC and DA merger are too vital things to bridge the Gap between the actual spending and the actual salary. For example in case of an MTS / LDC / Postmen his salary will be around Rs 15,000/-  The actual spending is Rs 25,000/  which includes house rent of Rs 8,000/- (against Rs 3000/- as HRA)  light bill, water bill telephone bill, petrol bill, local travelling  etc itself will account for Rs 5000/-  apart from purchase of provisions and vegetables which accounts for Rs 12,000/ for a family of 4 persons.  Apart from above there will be many unforeseen expense such as attending marriages, medical, Children education expenses, which may work out more than Rs 30,000/-  today the salary given to the CG Employees by the Central Government  are insufficient. The minimum wages should be Rs 25,000/- the actual salary should be doubled.

Today the Government has itself admitted that the inflation is around 11% and the Consumer Price Index  has crossed more than 110 points from 116 as on 1/12006 to 226 points as on April 2013. In that case the actual DA should have been 110 % not just 87% as on April 2013.

Once the price rise is more than 100% ,we are entitled for an Central Pay Commission and DA merger.  Comparing price rise in last 30 yrs are so we can observe in last six years the price rise graph has risen dramatically, ie the prices have increased to a maximum beyond common mans reach,  the rupee value has gone down drastically , internationally the dollar rate is higher, GDP is very low just around 6%.  The purchasing power has gone down. The value of our salary six years back and now if we make a simple compare, our salary is nothing compared to private market.  Now we observe that the Banks, LIC & PSU wages are revised every 5 years. As far as CG Employees it is more than 10 yrs. The DA has crossed more than 50% as on 1/1/2011. We should demand 7th CPC effective day from that day ie 1/1/2011.

    The DA merger was accepted principal of many CPC and 5th CPC had recommended it there by if DA merger is implemented our salary will increase by 20 to 25 %. and we should get arrears from 1/1/2011.  This will also affect other allowances such as HRA, Tour TA/DA etc.  The present DA as on April 2013 is 87%. and in a span of one year it will cross 100%. there by dual benefit we should get.

The Railways have got the benefit in revision of many allowances let it be OTA, NDA, Compassionate appointment etc. Where as for other CG Employees many of the allowances are not revised from past 15 years or so

Even the 5th &  6th CPC Pay Anomalies are not rectified even after many years. there is discontent amongst the employees.

The actual wage bill is just 8.5 % of the revenue collection. The Government being model employer should pay its employees the real wages.

    Our joint struggles have yielded results in the past we have to once again wage a long battle before the Government, the above statements by the Government  will also undergo a change if we are serious about the issue.

If we look at the actual prices recommended by 6th CPC  wide para number 2,21  and the current prices we can notice that

6th CPC rates and present rates common items used on daily basis
Comparative Chart:
SlnoItemPer6th CPC rates
in Rs as in
table 2.21
as on 1.1.2006
Rates
as per CPI
in Rs
as on 1.1.13
Rates as
per Market
in Rs
as on 1.1.13
% change
compare
to 6th CPC
prices
1RiceKg182655266
2Dal (Toor/ urd)Kg405985145
3Raw VegKg101550500
4Greenleaf VegKg101425250
5Other VegKg101740400
6FruitsKg302580266
7Milklt242634125
8Sugar and jaggeryKg243440166
9Edible OilKg5096100200
10FishKg120157320266
11MeatKg120257320266
12Egg eacheach245250
13Detergents etc Kg200240350175
14ClothingMt8061150187
15Cokked meals3270187
CPI: Consumer Price Index published by Government of India
Market Rates as per local market  rates in Bangalore

There are nearly 252 items in the consumer basket for  determination of consumer price index, in real terms the essential items for determination of CPI should have been only 52 items as per need based wages, by keeping a vast items in the basket the actual price rise is not reflected.

   The actual DA for central government employees  should have been 200 %  not just 80% as on 1/1/2013. The Consumer Price Index of 2001 which was at 115 points as on 1/1/2006 should have been more than  300 points rather than at 219 points as on 1/1/2013. The Miscellaneous articles weight age accounts for 25%. the food articles accounts for 58% weight age . Even if the  rise in food articles is there, the cost of TV , Computer, Mobile etc where there is reduction is taking place , thus depriving of the actual increase in CPI. Overall the Consumer Price Index for the CG Employees is not satisfactory, this has deprived us of the actual DA & wages. 

Current DA formula
Dearness Allowance = (Avg of AICPI for the past 12 months - 115.76)*100/115.76
by which is  the DA for entire year of 2006 was only 2% due to faulty formula.

The Average of the past 12 months should be removed and the division factor of 115.76 is also not correct. The weighted of three months average should have been taken in account rather than 12 months average, by this today DA would be 108% rather than 87%. when we are getting DA in six months, why should  we go for 12 months average.

The actual cost of the goods at villages and the cities are differently different The cost of one kg of tomato will cost around Rs 15 in a village after it brought to a retails shop in a city it is sold at Rs 40/- per kg. The weight age of just 20% is not correct it should be 40% .
The whole system of the  All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100   & DA formula for the Government employees is wrong and needs a relook.

Now the question of government paying capacity we can observe that actual spending on wage bill is on 8.5% of the revenue collection compared to 30% earlier days.


The background of the demand for setting up the 7th CPC raised by the Central Government employees on the ground that the wage revision was due in January, 2011,it would be pertinent to examine the wages as a ratio to the revenue resources and revenue expenditure of the GOI in the crucial years 1960-61`,1975-=76, 1986-087, 1997-98 and 2006-07 the relevant years in which the 2nd, 3rd,4th 5th and 6th CPC recommendations were given effect to. It is not difficult to discern the declining trend over the years , which is suggestive of the erosion in the real wages of the Public servants in India.

YearRevenue BudgetWage BillWage Bill as % of
Total Revenue receiptsTotal Revenue Expenditure.Revenue ReceiptsRevenue expenditure.
1960-611,2971,24641731.333.5
1975-768,0757,1891,88722.022.8
1986-8733,08340,8606,10018.414.9
1997-981,33,9011,80,35027,43020.515.2
2006-07(BudgetEstimate)4,03,4654,88,19241,77010.408.5

  We could see the emerging picture of a declining trend in the ratio of wages and salaries both with reference to revenue receipts and revenue expenditure.

YearsTotal Rev.
Receipts
Total Rev.
Expenditure
Wages &
Salary Bill
Amount
Value
Wage Bill as % of Revenue
Receipt
Wage Bill as % of Revenue
Expenditure
1991-9266,04782,30810,74416.313.1
1992-9374,12892,70213,39718.114.5
1993-9475,4531081691458519.313.5
1994-9591,0831221121572117.312.9
1995-961101301398601802316.412.9
1996-971262791589882039615.612.8
1997-981339011803502743020.515.2
1998-991495102174193156021.114.5
1999-001815132491093397818.713.6
2000-011926242778583398617.612.2
2001-022014493016113140715.610.4
2002-032317483396273331714.49.8
2003-042638783621403455413.19.5
2004-053060133843513865312.610.1
2005-06RE3484744402954004711.59.1
2006-07RE4034654881924177410.48.5

Data representation of SCs, STs and OBCs and disabled persons in Central Government Services made as online collection

Data representation of SCs, STs and OBCs and disabled persons in Central Government Services made as online collection

Immediate

No.36027/01/2013-Estt.(Res.)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training


North Block, New Delhi
Dated the 5th June, 2013

OFFICE MEMORANDUM


Subject : On-line collection of data on representation of SCs, STs and OBCs and Persons with Disabilities in Central Government Services.
The undersigned is directed to refer to this Department's D.O. letter No.43011/297/2010-Estt.(Res.) dated the 3 rd October, 2012 and subsequent reminders dated 15.10.2012, 5.11.2012 , 27.2.2013 and 3.5.2013 whereby it was requested for on-line submission of data in regard to the representation of SCs, STs, OBCs and Persons with Disabilities in Central Government services as on 1.1.2012 and as on 1.1.2013 through the URL "rrcps.nic.in". Moreover, workshops were also held from 22.1.2013 to 24.1.2013 and on 28.1.2013 to facilitate and to smoothen the process of on-line submission of data by the Ministries/Departments.

2. The requisite information is still awaited from your Ministry/Department. The Username and Password for login to website http://rrcps.nic.in have already been communicated. However, if not received may drop a mail at persinfotech@nic.in with Name, Designation, Phone details of Nodal Officer to get the same.
3. The data is significant for this Department for answering various Parliament Questions, Parliamentary Committees, RTIs etc. and in monitoring the implementation of reservation policy for SCs/STs/OBCs and PwDs. Parliamentary Committees have emphasised the need for maintaining of updated data.
4. It is requested that requisite data may be got uploaded in the URL latestby 20th June, 2013.

sd/-
(Debabrata Das)
Under Secretary to the Government of India
Telefax: 23093307


To
The Joint Secretary (Admn.)
All the Ministries/Departments (As per list attached) Annexure

List of Min/Dent/Apex Body not yet updated their profile

Sr. No. Ministries / Departments Name
1.Cabinet Secretariat
2.D/o Agriculture Research and Education
3.D/o Animal Husbandary, Dairying and Fisheries
4.D/o AR and PG
5.D/o Atomic Energy
6.D/o Ayush
7.D/o Bio-Technology
8.D/o Chemicals and Petro-Chemicals
9.D/o Coal
10.D/o Consumer Affairs
11.D/o Corporate Affairs
12.D/o Defence Production
13.D/o Defence Research and Development
14.D/o Disinvestment
15.D/o Ex-Servicemen Welfare
16.D/o Fertilizers
17.D/o Food and Public Distribution
18.D/o Health and Family Welfare
19.D/o Health Research
20.D/o Higher EdUcation
21.D/o Industrial Policy and Promotion
22.D/o Justice
23.D/o Land Resources
24.D/o Legal Affairs
25.D/o Mines
26.D/o Pensions
27.D/o Personnel and Training
28.D/o Pharmaceutical
29.D/o Posts
30.D/o Public Enterprises
31.D/o Road Transport and Highways
32.D/o Rural Development
33.D/o School Education and Literacy
34.D/o Science and Technology
35.D/o Scientific and Industrial Research
36.D/o Shipping
37.D/o Space
38.D/o Telecommunication
39.D/o Tourism
40.D/o Women and Child Development
41.M/o Civil Aviations 42. M/o Culture
43.M/o Development of North Eastern Region
44.M/o Drinking Water Supply & Sanitation
45.M/o Earth Science
46.M/o Environment and Forests
47.M/o External Affairs
48.M/o Food Processing Industries
49.M/o Housing and Urban Poverty Alleviation
50.M/o Information and Broadcasting
51.M/o Labour and Employment
52.M/o Micro, Small and Medium Enterprises
53.M/o Minority Affairs
54.M/o New and Renewable Energy
55.M/o Overseas Indian Affairs
56.M/o Panchayati Raj
57.M/o Petroleum and Natural Gas
58.M/o Railways
59.M/o Social Justice and Empowerment
60.M/o Statistics and Programme Implementation
61.M/o Steel
62.M/o Textiles
63.M/o Tribal Affairs
64.M/o Urban Development
65.M/o Water Resources
66.M/o Youth Affairs and Sports
67.Office of the Principal Scientific Adviser
68.Prime Minister Office
69.UPSC
70.Vice President Secretariat

Source: www.persmin.nic.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02adm/36027_01_2013-Estt.Res-05062013.pdf]

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