Principles of Determination of Pay and Minimum & Maximum Wages Submitted to 7th CPC by IRTSA

Presentation on Principle of Pay determination & Minimum and Maximum Pay – Compiled by Er. K.V. Ramesh, Senior JGS/IRTSA

 

Principles of Determination of Pay & Determination of Minimum & Maximum Wages Submitted to 7th CENTRAL PAY COMMISSION

 

Indian Railways Technical Supervisors Association (IRTSA)

 

M. SHANMUGAM	HARCHANDAN SINGH
Central President	General Secretary

Compiled by K.V.RAMESH, Senior JGS/IRTSA

Relevant Terms of reference

 

2.a) To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities / benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

 

i. Central Government employees-industrial and non- industrial;

 

2.b)To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind …….

Article 43. Living wage, etc., for workers

The State shall endeavour to secure, by suitable legislation or economic organisation or in any other way, to all workers, agricultural, industrial or otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities and …..

 

Job Evaluation

Scientific job evaluation methods are available for a fair comparison of wages.

Difference in nature of work can well be taken care of in scientific job evaluation.

Recommendation of 3rd CPC for adoption of Job evolution technique on experimental basis is still not tried.

Classification or Grading method is easier method for job evaluation.

Proposed method for Job Evaluation

Brief Job descriptions and details of pay scales, emoluments and other particulars be collected for various group of Employees. 

Jobs can be broadly grouped like “Industrial”, “Non-Industrial” and “Secretarial” etc.

These groups may be further broken up into various sub-groups like “Artisan”, “Supervisory”, “Administrative”, “Supportive”, etc. 

 

Separate “Grade definitions” shall be finalised for each of these Groups & sub-groups, Indicating, type of work, level of job difficulty, area & Span of Supervision, etc., Maintaining horizontal parities & vertical relativities. 

 

Will results in better justice, better job satisfaction, greater industrial harmony leading to higher efficiency and productivity and the time, cost and effort would definitely be worth the returns, particularly in the long run

Minimum Wage as per 6th CPC method

Pay in Pay Band + Grade Pay + % DA + Compensation factor based on rise in NNP at factor Cost.

Calculation of compensation factor

 

Year	Per Capita NNP at factor cost At constant price	Increase over previous year
2005-06	26015	1872
2006-07	28067	2052
2007-08	30332	2265
2008-09	31754	1422
2009-10	33901	2147
2010-11	36342	2441
2011-12	38037	1695
2012-13	39168	1131
2013-14*	41046	1878
2014-15*	42924	1878
% Increase of NNP at factor cost on Constant Prices for the period of ten years		65%

* Assumed figures as per average increase

 

Proposed Minimum Pay w.e.f. – 1.1.2016

 

Minimum Basic Pay + DA 140%+ Compensationfactor 65% of BP + DA
Minimum Basic pay after VI CPC	Rs.7000
Projected DA 140% (as on 1.1.2016)	Rs.9800
BP+DA	Rs.16800
Compensation factor (65%)	Rs.10920
Proposed Minimum Pay	Rs.27720 or Rs.28000
Proposed Number of times increase of BP	3.96

 

Proposed Minimum & Maximum Pay based on post 6th CPC formula

 

EXISTING PAY			PROPOSED PAY @ 3.96 TIMES (ROUNDED OFF) OF EXISTING PAY
Minimum		Maximum	Minimum		Maximum
Pay in Pay Band	Grade Pay		Pay in Pay Band	Grade Pay
Rs.5200	Rs.1800	Rs.80,000	Rs.20,800	Rs.7200	Rs.3,20,000

 

Minimum Pay shall be increased from Rs.7000 to Rs.28,000. 

Maximum Pay Shall be increased from Rs.80,000 to 3,20,000.

 

Intermediate Pays shall be fixed in the same way.

Upgradation shall be granted to specific categories on functional & other related justification.

 

Determination of Maximum Pay First & then arriving Minimum Pay in the ratio of 9:1

Maximum Pay shall be fixed first as per rise of NNP and then the Minimum pay in the ratio of 9:1thereof and the Intermediate Pays shall be fixed.

 

Maximum Pay = Rs.80,000 x Compensation factor based on rise in NNP at factor Cost. = 80000 x 3.96 = Rs.316800 or Rs.3,20,000.

 

Therefore, Minimum Pay works out to be Rs.320000 / 9 = 35555 or Rs.35500.

 

Rate of Increments

Annual Increment:- Rate of annual increment in each grade may please be granted @ 5 per cent.

Increment on Promotion:- During Promotion minimum 10% increase in Basic Pay has to be granted.

Fixation of Pay on Promotion at par with Entry Pay:- Pay on Promotion should be fixed at least at par with Entry Pay in the Revised Pay Structure.

 

Thank you

 

Source: IRTSA
[http://www.irtsa.net/pdfdocs/7th_CPC_Principle_of_Pay_Determination.pdf]

7th Pay Commission – Expectations and Suggestions

7th Pay Commission – Expectations and Suggestions

 We are all aware about the announcement on forming of 7th Pay Commission during the last week. It is our moral responsibility to convey our gratitude to the Central Government and the Unions which were continuously giving voice to this effect. The main reasons for the announcement regarding the forming of 7th Pay Commission as stated are:

The first reason as considered is being the oncoming election in order to take the efforts to obtain the votes. The second reason is to form pay commission every time and by way of allotment of sizable amount for the sake of the same, the problems like inflation are bound to happen in the country. For that, by way of forming of Pay Commission earlier, as stated by the Government, huge amount are being allotted for the sake of the same  in order to avoid the impact at the later stage caused owing to that.

After forming of the 7th Pay Commission, lots of expectations have been created in the minds of Central Government Staff.  When this Committee will be formed? Who are all the people deputed in this Committee? What will be the tentative date of submission of the report by them to the Government? After that, the dream of each and every Government employee would be what will be the quantum of hike? In that, what are all the concessions would be incorporated? Likewise, various questions and expectations would arise in the minds of each and every person.

We are all aware that the contents of the 6th Pay Commission had contained many deficiencies and fulfillments. After the implementation of the 6th Pay Commission, we would have noticed about the problem as ‘one increment’ through National Anomaly was finalized and we have received arrears of amount based on that. We all know that there were many finalized problems of such nature and unsolved problems.

Meanwhile, eagerness is generated in the minds of all the people as to what would be the outcome by forming of 7th Pay Commission. Last AISPIN value and the procedure for calculation of DA as also based on the present price index are not found appropriate. This has been pointed out by the Confederation on many occasions.

The merger of DA with basic pay as adopted in the 5th Pay Commission has not been made applicable in the 6th Pay Commission. Non-merger of 50% DA has formed regret and dissatisfaction on the minds of all the employees.

Likewise, forming of Pay Commission once in every 10 years is considered to be quite a long period. Due to the present alarming increase of price, in order to overcome the economic problems, it is quite obvious for all to expect the consideration of the present Pay Commission about the aspects like pay revision at least once in 5 years. For this sake, efforts to involve in agitations are being announced by the Union at various levels.

Various dreams and expectations would prevail on all as regards the details that would be covered by the Pay Commission. Likewise, some would be worried about the repetition of the problems those were encountered during the 6th Pay Commission in the 7th Pay Commission also.

Source: /www.7thpaycommissionnews.com
[http://www.7thpaycommissionnews.com/2013/10/7th-pay-commission-expectations-and.html]

7th Pay panel formed, retirement age may go up 62 yrs - Moneycontrol

7th Pay panel formed, retirement age may go up 62 yrs - Moneycontrol
The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners.

Siddharth Zarabi
The national capital, home to a vast majority of central government employees, is headed for elections this November. And so are four other states, followed by the general elections sometime early next year. This, more than anything else, explains the central government's hurry to promise its employees higher wages.

The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners. The fact that this award is one more in a long list of expenditure-heavy pre-election programmes, will mean several consequences for India's finances. Back of envelope calculations suggest that even if the increments in the 6th pay commission were to be matched, the centre's wage bill could rise by up to Rs 1 lakh crore in 2016. But on the other hand, this payout will spark a surge in consumption starting that year. Why? The sixth pay commission award amounted to around 0.5 percent of GDP and a tidy sum was handed out as arrears in the start of 2008. That extra spending power meant that the ensuing slowdown was mitigated to some extent. This could play out again in 2016. Meanwhile, CNBC TV18 learns that the proposal to extend the retirement age of central government employees by two years has received fresh impetus. A decision on this could be taken within a week or two, and would be the second major populist decision by the UPA to woo the urban middle class and the powerful government employee mass in Indian society.

Source: www.moneycontrol.com
[http://www.moneycontrol.com/news/business/7th-pay-panel-formed-retirement-age-may-go62-yrs_956487.html?utm_source=ref_article]