Wednesday, September 6, 2017

The Code on Wages Bill 2017

The Code on Wages Bill 2017

As part of labour law reforms, the Government has undertaken the exercise of rationalisation of the 38 Labour Acts by framing 4 labour codes viz Code on Wages, Code on Industrial Relations, Code on Social Security and Code on occupational safety, health and working conditions.

1. The Code on Wages Bill 2017 has been introduced in Lok Sabha on 10.08.2017 and it subsumes 4 existing Laws, viz. the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. After the enactment of the Code on Wages, all these four Acts will get repealed. The Codification of the Labour Laws will remove the multiplicity of definitions and authorities leading to ease of compliance without compromising wage security and social security to the workers.

2. At present, the provisions of the Minimum Wages Act and the Payment of Wages Act do not cover substantial number of workers, as the applicability of both these Acts is restricted to the Scheduled Employments / Establishments. However, the new Code on Wages will ensure minimum wages to one and all and timely payment of wages to all employees irrespective of the sector of employment without any wage ceiling.

3. A concept of statutory National Minimum Wage for different geographical areas has been introduced. It will ensure that no State Government fixes the minimum wage below the National Minimum Wages for that particular area as notified by the Central Government.

4. The proposed payment of wages through cheque or digital/ electronic mode would not only promote digitization but also extend wage and social security to the worker. Provision of an Appellate Authority has been made between the Claim Authority and the Judicial Forum which will lead to speedy, cheaper and efficient redressal of grievances and settlement of claims

5. Penalties for different types of violations under this Code have been rationalized with the amount of fines varying as per the gravity of violations and repeat of the offences. Provision of compounding of offences has been made for those which are not punishable by a penalty of imprisonment.

6. Recently, some news reports have been published regarding the fixation of minimum wage as Rs. 18000/- per month by the Central Government. It is clarified that the Central Government has not fixed or mentioned any amount as “national minimum wage” in the Code on Wages Bill 2017. The apprehension that minimum wage of Rs. 18000/- per month has been fixed for all employees is, thus incorrect, false and baseless. The minimum wages will vary from place to place depending upon skill required, arduousness of the work assigned and geographical location.

7. Further, the Code on Wages Bill 2017, in the clause 9 (3), clearly states that the Central Government, before fixing the national minimum wage, may obtain the advice of the Central Advisory Board, having representatives from employers and employees. Therefore the Code provide for a consultative mechanism before determining the national minimum wage.

8. Some reports have also been appearing in the media regarding the revised methodology for calculation of minimum wages by enhancing the units from three to six. It was purely a demand raised by Trade Unions in the recent meeting of the Central Advisory Board on Minimum Wages. However it is clarified that such proposal is not part of the Code on Wages Bill.

PIB

Example for JCOs ORs - 7th CPC Pension Revision - Notional Fixation DESW Order 05.09.2017

Example for JCOs ORs - 7th CPC Pension Revision - Notional Fixation DESW Order 05.09.2017
EXAMPLES (JCOs/ORs)

(Reference - Para 15 of MoD letter No 17 (01)/2017(02)/D(Pen/Policy) dated 5th September 2017)

Sl.No.Description1st Case2nd Case3rd Case4th Case
1RankNaikHavNb SubSubedar
2Group'C''D''Y''Y'
3Date of Retirement31.12.1984 (3td CPC scale)31.01.1989 (4th CPC scale)30.06.1999 (5th CPC scale)30.09.2013 (6th CPC scale)
4Qualifying Service2018.52630
5Scale of Pay (or Pay Band & G.P) at the time of retirement OR Notional pay scale as on 1.1.1986 for those retired before 1.1.1986.980-20-1140- 25-13151050-25-1300- 30-14505620-140-81409300-34800 GP- 4600 MSP- 2000
6Pay on retirement OR Notional pay as on 1.1.1986 for those retired before 1.1.19861140+40 (CA)1175+30 (CA) =1205632015030 (BP) 4600 (GP) 2000 (MSP) 21630
7Pension as on 01.01.2016 before revision717076931040512690
8Family pension as on 01.01.2016 before revision4302461662437614
9Family pension at enhanced rate as on 01.01.2016 before revision (if applicable)NANANA12690
10Revised pension by multiplying pre-revised pension by 2.5718427197722674132614
11Revised family pension by multiplying pre-revised family pension by 2.5711057118641604519568
12Revised family pension at enhanced rate by multiplying pre-revised enhanced family pension by 2.57NANANA32614
13Pay fixed on notional basis on 1.1.19963500+80 (CA) (3150-70- 42003680+80 (CA) (3600-85-4875)NANA
14Pay fixed on notional basis on 10.10.19973510+100(CA) (3425-85- 47003700+100(CA) (3600-100-5100)NANA
15Pay fixed on notional basis on 1.1.20066840 (BP) 2400 (GP) 2000 (MSP) + 200 (CA) 11440 (PB-I, GP-2400)7050 (BP) 2800 (GP) 2000 (MSP) + 200 (CA) 12050 (PB-I, GP-2800)11760 (BP) 4200 (GP) + 2000 (MSP) 17960 (PB-II, GP- 4200)NA
16Pay fixed on notional basis on 1.1.201625500 +5200 30700 (Level- 4)29200 +5200 34400 (Level- 5)41100 +5200 46300 (Level- 6)50500 +5200 55700 (Level- 7)
17Revised pension w.e.f. 1.1.2016 as per first formulation.15350172002315027850
18Revised family pension w.e.f.1.1.2016 as per first formulation.9200103201389016710
19Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation.NANANA27850
20Revised pension payable (Higher of SI.No. 10 and 17)18427197722674132614
21Revised family pension payable (Higher of SI. No. 11 and 18)11057118641604519568
22Revised family pension at enhanced rate payable (Higher of SI. No. 12 and 19)NANANA32614

7th CPC Minimum Pay from Rs.18000 to Rs.21000 is just a rumour

7th CPC Minimum Pay from Rs.18000 to Rs.21000 is just a rumour

Government plans to increase 7th CPC minimum pay from Rs.18000 to Rs.21000 is just a rumour

Suddenly a news about increasing minimum pay from Rs. 18000 to Rs. 21000 is floating in some websites. All such news items come with the claim of that ‘the sources close to Finance Ministry on condition of anonymity told government Is planning to increase the minimum wage from Rs. 18000 to Rs. 21000. We are also flooded with queries of whether this news is true or false.

As for as we are concerned we came to know that there was no such plan under consideration of central government. Some websites might have posted this news on vested interest or by misunderstanding the amendment made in payment of wages act.

Recently a amendment was made in payment of wages act to increase the wage limit to Rs.24000 for applicability of sub section 6 of section 1 of Payment of wages act 1936. (see the amendment)
This might have been misunderstood by some media that central government is going to increase minimum pay to Rs.21000.

We asked some leaders in NCJCM side, they told that they haven’t any idea about the news and the authenticity of sources of that news.

Source: Govtstaffnews.in

Option for pay fixation in the 7 CPC Pay Matrix levels to the Railway employees during the period 01/01/2016 to 25/07/2017

Option for pay fixation in the 7 CPC Pay Matrix levels to the Railway employees during the period 01/01/2016 to 25/07/2017

No. IV/NFIR/7 CPC (Imp)/2016/RB-Part II
Dated: 04/09/2017
The Secretary (E),
Railway Board,
New Delhi

Dear Sir,
Sub: Option for pay fixation in the 7 CPC Pay Matrix levels to the Railway employees during the period 01/01/2016 to 25/07/2017-reg.

Ref: (i) Railway Ministry's Notification vide RBE No. 90/2016 dated 29/07/2016.
(ii)     Railway Board's letter No. PC-VII/2016/1/6/2 dated 20/10/2016 - RBE No. 124/2016.
(iii) NFIR's letter No. IV/NFIR/7th CPC (Imp)/2016/RB-Part I dated 16/01/2017 & 07/08/2017.
(iv)    Railway Board's reply to NFIR vide No. PC-VII/2017/R-U/7 dated 31/03/2017.

Further to the above cited references, Federation has since found that on Zonal Railways, option 2 given by staff had not been accepted on the wrong plea that option opportunity has been allowed to those promoted/got financial upgradation under MACPS/got increment during the period 01/01/2016 and 28/07/2016 (i.e. date of notification). In this connection, Federation cites below the following instances as example:

(i)  Employees promoted between 29/07/2016 to 28/10/2016 and exercised option for fixation of pay in 7th CPC within the stipulated period electing option No. 2.

The pay of the Technicians GP 2800/Level 5 on promotion as Sr. Technicians GP 4200/Level 6 on 27/10/2016 has been fixed in the 7th CPC Pay Matrix as shown vide 'A' below whereas pursuant to option No. 2 exercised by staff, they are entitled for pay fixation on promotion as shown vide 'B' below:

Pay in 6th CPC as on 01/01/2016 GP 2800Pay Revised & fixed in 7th CPC
w.e.f. 01/01/2016
Pay in 7th CPC as on 27/10/2016 Pay in 6th CPC
when continued
upto 27/10/2016
Pay in 6th CPC on promotion to GP 4200 as on 27/10/2016Pay required tofixed in 7th CPC taking into account option
12970349003590013360
(10560+2800)
15160
(10960+4200)
39900
Unfortunately, the staff have been denied their legitimate pay fixation benefit even after submission of their correct option in time.

(ii)  Another aberration is that in the case of Technicians who have been granted cadre restructuring w.e.f. 01/09/2016 vide RBE No. 116/2016, the Zonal Railways have issued promotion orders belatedly while at the same time, option opportunity not allowed, consequently pay fixation has been granted vide 'A' below instead granting pay fixation benefit (on the basis of re-option) as 'B' below:

Pay in 6th CPC as on 01/01/2016Pay Revised &
fixed in 7th CPC
as on 01/01/2016
Pay in 7th CPC as on 01/09/2016 in L5Pay in 6th CPC when continued till 31/08/2016Pay in 6th CPC on promotion in GP 4200 as on 01/09/2016Pay    to   be    fixed
with option in 7th CPC in L6
15210392004040015670
(12870+2800)
17540
(13340+4200)
46,200

NFIR, therefore, requests the Railway Board to consider the above situations and issue clear clarificatory instructions, granting pay fixation benefit on the basis of re-option being exercised by staff as per charts 'B' above.NFIR contends that in as much as promotion allowed w.e.f. 01/09/2016, such staff are entitled for option opportunity in terms of RBE No. 90/2016 and 124/2016.
Yours faithfuly,
S/d,
(Dr. M. Raghavaiah)
General Secretary
Source : NFIR

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