Revision of NPS, Minimum Wage, Fitment Formula, Allowances and Pension - GS COC
Karnataka
"The
Staff Side (JCM) had demanded the fitment formula of 3.72 that is Rs
26000/ Rs 7000 as on 1st Jan 2014. Whatever angle we look the 7th CPC
has cheated us on the minimum wage and fitment formula compared to the
earlier pay commission this pay commission has given us the lowest wage
hike of just 14% compared to last 40 years."
16th March Strike Importance
Dear Comrades,
The main demands of the Staff Side (JCM) which led to declaration of
the 11th July strike is the revision of the NPS, minimum wage, fitment
formula, allowances and pension cases etc. this is due to lowest wage
hike of just 14% recommended by the 7th CPC.
Under the 7th Pay
Commission slab - which was implemented ten years after the previous pay
commission the salaries of the government employees saw a marginal rise
of just 14% . The basic pay under the 7th CPC the minimum wage was
increased to Rs 18,000 from Rs 7,000 (2.57 times) while the salary of
the senior government officials has gone up to Rs 2.50 lakh from Rs
90,000(2.77 times).
The minimum wage was increased by 2.57 times
but in actual terms this increase is of just Rs 2250/- in 7th CPC, while
taking into account of 125% DA was merged this due to rising inflation
and price rise already the CG employees wage factor was 2.25 time, that
is basic of Rs 7000/- plus DA of 125% of Rs 8750 works out to Rs 15750/-
, staff side had already demanded for a hike of more than three times
which is Rs 26,000 per month.
Comparison of earlier wage hike we
can observe that the fitment factor of 2.57 times is the lowest
comparing to other pay commissions. If we make a study of earlier pay
commission.
| Pay Commission | Year | Minimum wage old | Minimum wage revised | Increase |
| 2nd CPC | 1959 | Rs 55/- | Rs 80/- | 1.45
times |
| 3rd CPC | 1973 | Rs 80/- | Rs 196/- | 2.45
times |
| 4th CPC | 1986 | Rs 196/- | Rs 750/- | 3.82
times |
| 5th CPC | 1996 | Rs 750/- | Rs 2550/- | 3.40 times |
| 6th CPC* | 2006 | Rs 2550/- | Rs 7000/- | 2.74 times |
| 7th CPC * | 2016 | Rs 7000/- | Rs
18000/- | 2.57 times |
" The
minimum qualification required at lower level appointments from the
year 2008 has been revised from 8th pass to 10th pass (SSLC) as per the
6th CPC recommendations, hence the minimum wage should increase by 25%
compared to earlier pay commissions.
The minimum wage has
increased considerably due to price inflation from 4th CPC (1986)
onwards the average wage hike is 3.32 times. During the period 1946 to
1972, the financial position of the Central Government was not that
good. The financial position of the Central Government has been
improving from the 4th CPC onwards that is from 1986 onwards, the pay
fixation depends on the paying capacity of the Central Government. The
revenue collection of the Central Government has increased especially
from last few years. The revenue expenditure in respect of salaries of
Central Government employees is just under 10% of the Central Government
revenue. In respect of the many State Governments the revenue
expenditure towards salaries is around 20%. Whereas the Central
Government is spending just 10% of the revenue collection on salary
head.
The wages of CG employees are determined based Dr. Aykroyd
formula, the Staff Side (JCM) has calculated minimum wage as on 1st Jan
2014 as per the Dr. Aykroyd formula as Rs 26,000/- taking into market
prices. Even if we adopt the retail prices of The Directorate of
Economics & Statistics Department of Agriculture & Cooperation
Ministry of Agriculture Government Of India New Delhi of the month of
July 2016 the minimum wage works out to Rs 24,000/ which is 3.42 times
increase. The 7th CPC has also adopted Dr. Aykroyd formula for the
computation of the minimum wage and fixed at Rs 18000/- and thereafter
the fitment formula is calculated.
CLICK HERE FOR MINIMUM WAGE DETAILS
