7th CPC Minimum wage and fitment formula hike issues - CoC Karnataka

7th CPC Minimum wage and fitment formula hike issues - CoC Karnataka

 

Minimum wage and fitment formula hike issues

There are various reports in the news media, print media & social media regarding the hike in the minimum wage of Central Government employees from the existing Rs 18,000/-  to Rs 21,000/- and fitment formula from 2.57 to 3.00, which shall be implemented from 1st January 2018. The same shall be announced in the National Anomaly Committee due on 9th of October.

Comrades, 

We cannot confirm this news, comrades we should concentrate on struggle path as the Confederation has given the series of programs , I hope the Government will implement the hike in minimum wage for CG employees and revise the fitment formula also from the existing 2.57 to 3.00 even though the Staff side JCM has demanded Rs 26,000/ as minimum wage and fitment formula of 3.56 , this hike should be from 1/1/2016 not 1/1/2018 as per media reports.

In fact the Central Government has to take the political decisions on the wage hike , in fact the group of ministers of the Central Government have agreed to raise the minimum wage for CG employees on 30th June 2016 . I hope the commitment of the union minsters shall be honoured now.

Secondly the economy of the country which was going very well during past three years has showed down ward trend in last one year as the GDP which was at 9.1 in 2015-16 has reduced to 5.7 in 2017-18 .The economic activity has to take place, it is also observed during the past one year, in spite of economic recessions, the Government revenue collection has increased considerably. To improve the economic activity of the country and increase the GDP the Central Government should spend its funds which is available with them .

If the Central Government increases the minimum wage and fitment formula for its employees, the Central Government employees gets back 40% of the wage increase through the Income Tax and GST . So hardly a Government servant is left out with 60% wage hike , here also he spends the amount credited to him , as such an economic activity is induced in the public which will help to create more demand and employment activity.

I hope the Central Government takes a political decisions on increase of minimum wage hike and fitment formula for more than one crore employees which will also benefit the public and the CG employees.

Issued by COC Karnataka

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Revision of NPS, Minimum Wage, Fitment Formula, Allowances and Pension - GS COC Karnataka

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

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Prepare for strike we are sure the of getting better wage hike.

Comrades,
The flash strike against the recent PF Rules, 2016 of the Central Government (i.e., Centre’s new rule on Provident Fund withdrawal) by large section of Garment Factory Workers and other Industrial Workers of Karnataka State on 18th and 19th April 2016 received immense response and there was a massive protest which resulted in road blocks for hours together, thereby the entire traffic of Bengaluru City was paralyzed. The traffic was also severely affected on Mysore, Tumkur and Hosur roads.

The COC Karnataka extended moral support and sympathy for this Labour Movement. The February 10th notification was under attack from trade unions from the beginning. The notification was published in the gazette on February 26 and created technical problems.

The violence in Bengaluru prompted the Labour Ministry, Govt. of India to cancel the February 10 notification which put restrictions on 100% withdrawal from the PF account.

Within few hours of protest in Bengaluru and other parts of Karnataka state , the Hon’ble Minsiter for Labour, Shri.Bandaru Dattatreya acted upon and withdrawn the notification issued on February 10th and informed that the old system will continue. This is a victory for the workers of the country.

This clearly shows that the Government of India does not want to antagonize the workers. If the Central Government employees also participate in trade union action against the retrograde recommendations of the VII CPC similar to the Garment Workers of Karnataka, we too can get similar results and hope for a better wage revision and a decent wage hike.

This Labour movement of the Garment Workers of Karnataka state is an eye-opener for all other working class in the entire country, Comrades if one state and one particular working class movement can bring changes to the policy of the Central Government, if the entire the entire country the Central Government employees agitate against the retrograde recommendations of the 7th CPC (where only 14 % wage hike was provided against the staff side demand of 80% wage hike and also reducing the number of allowances and reduction in HRA rates) then the Central Government shall provide the decent wage hike by settling the issue of wage hike with the staff side NJCA like the PF issue being settled.

Comrades it is high time to prepare for 11th July strike of Central Government employees under the banner of NJCA. We shall get good results and Central Government shall grant better wage hike than the 7th CPC recommendations. Better we prepare for 11th July strike better wage hike we get.

Comradely yours

(P.S.Prasad)
General Secretary

Source: karnatakacoc.blogspot.in

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