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Sunday, 5 January 2014

7th CPC Pay Scale – Minimum wage & Pay fixation forumala for 7th CPC worked out by COC Karnataka

7th CPC Pay Scale – Minimum wage & Pay fixation forumala for 7th CPC worked out by COC Karnataka

Minimum wage & Pay fixation formula for 7th CPC worked out

Providing proper minimum wage of Rs 27000/- for CG Employees including that of GDS employees and pay fixation formula for 7th CPC worked out .

Providing proper minimum wage of Rs 27000/- for CG Employees including that of GDS employees and pay fixation formula:

The staff side of the JCM had given representation demanding Rs 10,000/- as minimum wage for Central Government Employees. The 6th CPC in its report vide para no 2.2.15 had calculated a minimum wage of Rs 5478/- today if we are calculate the minimum wage it should be more than Rs 21,000/- apart from HRA and other allowances. Hence there is three times increase in actual prices calculated by the 6th CPC and the current prices. The current wages of the CG Employees should be doubled at least including that of GDS.

The most comprehensive criteria for covering all the basic needs were evolved by the 15th Indian Labour Conference (ILC) in 1957 for fixing minimum wages. The norms are that a need-based minimum wage for a single worker should cover all the needs of a worker’s family consisting of a spouse and two children.

The food requirement was to be 2,700 calories, 65 grams of protein and around 45-60 grams of fat as recommended by Dr Wallace Aykroyd for an average Indian adult of moderate activity. Dr Aykroyd pointed out that  animal proteins, such as milk, eggs, fish, liver and meat, are biologically more efficient than vegetable proteins and suggested that they should form at least one-fifth of the total protein.

Dr Aykroyd worked on nutrition for nearly 30 years and was director of the Nutrition Division, Food and Agriculture Organisation, United Nations. In 1935, he was appointed Director of the Government’s Nutritional Research Centre in India, situated in Coonoor in the south. The 15th ILC further resolved that clothing requirements should be based on per capita consumption of 18 yards per annum, which gives 72 yards per annum for the average worker’s family. For housing, the rent corresponding to the minimum area provided under the government’s industrial housing schemes was to be taken. Fuel, lighting and other items of expenditure were to constitute an additional 20% of the total minimum wage.

The Supreme Court upheld these criteria in the case of Unichoy vs State of Kerala in 1961. In the later Raptakos Brett Vs Workmen case of 1991, the SC went one step further, and held that besides the five components enunciated by the 15th ILC, minimum wages should include a sixth component, amounting to 25% of the total minimum wage, to cover children’s education, medical treatment, recreation, festivals and ceremonies. The SC also observed that a wage structure including the above six components would be “nothing more than minimum wage at subsistence level” which the workers must get “at all times and under all circumstances”.

Minimum Salary-Analysis &Recommendations para 2.2.15

The Commission, however, agrees that the norms set by the 15th International Labour Conference (ILC) are appropriate for computing minimum salary. It is also observed that the minimum salary is applicable at the time a person joins the Government which will usually be at a young age when a person may be just married and will not have responsibility of parents or many children. Accordingly, the family unit for minimum salary can only be taken as three.

The Minimum Salary should be based on 6 units not three units as per 6th CPC calculation. As both parents and two children are depending on the salary of Government servant apart from spouse. the additional burden the employees will carry after a few years of service as his parents would have retired from service and are wholly dependent on him also his children would have stepped into school / college level, even small baby requirements are much unlike in the past years, the hence the minimum wage he gets will not compensate with the family financial burden Hence the whole calculations needs a undergo a drastic change in next CPC taking into account of 6 units rather than 3 units.

The Sixth Central Pay Commission has recommended a minimum wage of Rs 6600/- per month against the demand of Rs 10,000/- per month as worked out by Staff side of JCM. Today the minimum need based wage works out to Rs 21,000/ per month+ HRA+ allowances. The general minimum expenses per month for a family of four members are as follows when a Government servant joins the duty with two small children:

a) Vegetables Rs 3000/-
b) Food Grains /Groceries Rs 7000/-.
c) House rent single room Rs 6000/-
d) Clothing Rs 3000/-
e) Children education and their expenses Rs 2000/-
f) Electricity Chargers Rs 800/-
g) Water Charges Rs 250/-
h) Transportation charges Rs 1000/-
i) TV cable rent Rs 300/-
j) Medical Expenses Rs 500/-
k) Mobile expenses Rs 250/-
l) Cooking Gas Rs 450/-
m) Recreation charges Rs 500/-
n) Personal expenses Rs 1000/-

Total Rs 26500/-Hence minimum wage works out to Rs 27,000/-

 The expenses will increase as the age of Government servant goes up and family responsibility will increase as he has to educate the children in professional courses, marriage of his children has to be performed, his medical expenses will increase, his parents will stay with him and now there are quite dependant on the Government servant for their lively hood. As such the salary should be more to meet his expenses. The Government is a model employer hence the wages should be provided with the needs.

Table: Fixation of Minimum wage as on 1.1.2006 as per 15 ILC norms as per Table 2.2.1 of the 6th compare minimum wage should be three times the 6th recommendations.

ItemsPer day PCU (In grams)Per month 3CU (In kg)Price per kg. taken by 6th CPC (In Rs)Total cost as per rates of 6th CPC (in Rs) As on 1/1/2006Price per kg. as per prevailing market rates (in Rs) 1/6/13 At BangaloreTotal cost as per prevailing rates (in Rs) 1/6/2013
Dal (Toor/ Urad / moong807.24028880576
Raw Veg.1009.00109060600
Greenleaf Veg12511.2510112.540400
Other Veg.756.751067.545450
Milk200 Ml18 Lt.24.0043235630
Sugar and Jaggery565.0024.0012045225
Edible Oil403.650180100360
Fish 2.5120300180450
Meat 5.001206003751875
Egg 900218004360
Detergents etc 200 200400400
Clothing 5.5 Mt.80/Mt4402001100
Total   4103.5 10641
Misc. @ 20%*   827 2660
Total   4930.5 13301
Addl. Exp @ 25%**   400 3325
Total   5330.5 16626
Housing @ 10%***   148 600^
Grand Total   5478.5 17226

Source: Average market rates in Kolkata, Chennai, Delhi and Mumbai as indicated in the Economic Times & Other major dailies (element of 20% has been added to cover the increase in cost in retail sale).

Notes PCU = Per day Consumption Unit 3CU = Three Consumption Units that is wife, husband and a child no parents or second child is taken into account.

* 20% Miscellaneous charges towards fuel, electricity, water etc.

** Additional Expense at the rate of 25% includes expenditure towards education, Medical treatment, housing, recreation, festivals etc.

# Has been taken as Rs.400 because separate allowances for education, medical Treatment and housing exist in the Government. Consequently, only the expenditure

Towards recreation & festivals need to be taken in account.
^ Being the license fee chargeable for government accommodation at an average rate of 3% of the basic pay.

Total minimum wage is Rs 17225+ HRA Rs 7000/- + Transportation Allowance Rs 2500/-= Rs 26725 that is Rs 27,000/-.

The fixation of minimum basic pay of Rs 21000/- is taking into the account of minimum skill and education requirement as 10th Standard as prescribed by the 6th CPC. As the education requirement is more such as Diploma in Engineering or Degree in Science or Commerce, then the minimum basic pay should be Rs 40,000/- (8700+4200) X 3 = Rs 39,000/-. For Engineering Graduates and Master Degree it should be Rs 65,000/- .
The pay scales should start with a minimum basic pay including Grade Pay of Rs 21,000/- to end with 2, 10,000 with a ratio of 1:10 of minimum scale and maximum scale. Since government is a model employer they should provide minimum wages as per the 15 ILO conference and other wages as per the educational qualification & skill requirement of the job.

The multiplying factor is calculated as below:
The existing basic pay + Grade pay + DA 100% + weightage of 100% ( that is the difference between the actual price rise and the DA paid) that is the multiplying factor works out to three.

Note: The actual price rise is over 200% the DA is only 90%.

The existing basic pay + grade pay+ DA 100%+DA merger = Net wage + weightage of 70% (that is the difference between the actual price rise and the DA paid).

The pay scales should have a multiplying factor of three, that means the existing pay scales and pay (basic pay + GP) should be multiplied by three. The pay scales arrived should not have any bunching of basic pay as done in the 5th CPC. The time scales should last for more than 10 years so that there is no stagnation.

The concept of fair wages has been deprived to CG Employees. Usually pay commissions had adopted a multiplying factor of 3.2 to 3.8 to arrive at the new scales compared to earlier scales. But the VI CPC adopted conversion factor of about 2.6 at the lowest where as it was about 3.6 at the highest scale. By this method well established ration 1:12 between the lowest scale and highest scale was disturbed by the VI CPC.

The minimum pay & band pay fixed by the 6th compared all other pay commissions for example a new recruit for the post of LDC his pay is Rs 5200+ 1900 = Rs 7100/- + allowances, that should have been actually Rs 3050 multiplied by 3.6 times which works out to Rs 11000/- .

In case of a Graduate or Diploma holder as per 6th + 4200= Rs 13500/- + allowances, that should have been actually Rs 5000 multiplied by 3.6 times which works out to Rs 18000/- .

In case of a Master degree holder as per 6th 4800= Rs 14100/- + allowances, that should have been actually Rs 6500 multiplied by 3.6 times which works out to Rs 23000/- .

Hence the justification of multiplying factor of three is justified.  The ratio between the lowest and highest scales should not more than 1:10



Comparison of pay scales of the 4th CPC , 5th CPC and 6th CPC


The existing basic pay should be multiplied by factor three, so that there is no bunching of basic pay. The existing GP of Rs 2000/- and Rs 2800/- should be removed. Likewise there are GP of Rs 5400/- in both PB-2 and PB-3 one of them is to be removed.

There are 34 scales recommended by the 6th Pay has been not in existence, as such 30 GP are right now available.

With the merger of pay scale from S9 to S12 into Grade Pay of Rs 4200/-.

There are many pay scales which was merged into single GP of Rs 4200/- which has created anomalies, the promotions have been made in same grade pay without financial benefits.

There should be time scale rather than grade pay system, these time scales should long enough.

Source: http://karnatakacoc.blogspot.in/



Govt. of India
Ministry of Defence,
Ordnance Factory Board,
10A S.K. Bose Road
Kolkata -700001
Dated-23rd December, 2013
All Sr. General Manager / General Manager / Head of Establishment Ordnance and Ordnance Equipment Factories

Sub : Transfer Policy for deployment of Group ‘B’ Gazetted officers of Ordnance Factories Organisation.

As approved by O.F.Board. Transfer Policy for JWM, Sr. PS & PS is hereby circulated for information of all concerned. A copy of the same enclosed herewith an Annexure.
Director /NG
For Director General, Ordnance Factories
Transfer Policy for JWM, Sr PS, PS.
1. Objectives :
To ensure reasonable tenure that promotes core competencies and domain knowledge.
To enable exposure to new areas of work and encourage second and third line of experts.
To accommodate genuine problems and difficulties of the officers in a transparent manner.

2. Transfer on Functional Grounds.
Generally, JWM should work in the factory continuously for a period of 10 years unless it is required to transfer on functional & ground. As far as possible, JWM / Tech (Except Civil) may be considered for transfer in the same technology group of factories. JWM / Civil, JWM / NT, Sr. PS / PS can be considered across the technology groups but in nearby stations to the extent possible.

If a JWM has less than 5 years service left, he should not be considered for transfer, unless there is a request or administrative exigency, which may be recorded.

Transfers should be delinked from promotions.
Based  on the projected requirement from factories/units/OFBHQ, a circular should be issued twice in a year i.e. in January and July calling for applications indicating preference for posting.
Transfers may be considered normally twice in a year, as on 1st April and 1st October.

3. Request Transfers.
Request for transfer from employees suffering from terminal ailments shall be given priority.
While considering other requests for transfer, GOI instructions on spouse cases physically challenged, mentally challenged family members etc. well be followed.
The officer should complete at least 3 years tenure in a particular station, before his request for transfer can be considered.
All the request cases for transfer to factories having functional requirement may be accommodated, before considering others for transfer on functional grounds.
All request transfers in cases of less than 10 years stay except that at point no.1 above will be ordered in own interest.

4. Standing Committee for posting / transfer
A Standing Committee comprising the following shall consider all cases of transfer including request transfer and give specific recommendation for approval of the competent authority.
Composition of the Standing Committee:
(i) Member / Per – Chairman
(ii) DDGS of all Operating Divisions – Members
(iii) DDG/IR – Member Secretary

5. Competent Authority
Based on the recommendation of the Standing Committee, all transfers whether on functional ground or on request will be issued, with the approval of DGOF & Chairman, OFB.
Notwithstanding above, DGOF & Chairman, OFB reserves the right to order or to refuse any transfer on administrative and functional grounds.
All the requests for transfer (other than those suffering from terminal ailments) should be considered by determining their relative merit on point score for different grounds of compassion.

The point score for grounds of compassion will be as under :
Sl.No.GroundsPoint Score
Grounds of Compassion
1.Major illness of the employee or dependent family members on the recommendation of the CMO of Factory / Unit Hospitals15
2.Settlement of daughters marriage15
3.Final settlement at native place within last 3 years of service15
4.Posting of Husband 8 wife not in the same station1 5
5.Stay at hard station for more than 10 years15
6.Stay at hard station for more than 5 years10
7.Children’s Education (10th to 12th)10
8.Looking after Parents / dependent brother or Sister5
Points assigned to the above grounds /criteria will be assumed up to obtain the total score point regarding an applicant and ranking / priority will be decided based on that.
In case of same score points obtained by two or more applicants, individual elder in age will be given priority.
List of hard stations:
3. OFV
The requests for transfer would be accommodated to the extent of vacancies. For example, If three vacancies are there in one station and there are seven requests for transfer to that station, the three cases having highest point score may be considered for posting.

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