Unions Reject 7th Pay Commission Approval, Threaten To Go On Strike

The Confederation of Central Government Employees said the pay hike approved by the Cabinet on the 7th Central Pay Commission’s recommendations is “not acceptable”.

RSS affiliate Bharatiya Mazdoor Sangh (BMS) and other trade unions also rejected the hike, saying this is the lowest increase in the past 17 years that would increase disparity between the minimum and maximum pay.

Central trade unions have also sided with government employees and have given a call to hold nationwide demonstrations against the pay hike.

“In the prevailing economic conditions, the proposed hike as per the Pay Commission is inadequate. It is not acceptable to us,” M Duraipandian, General Secretary, Confederation of Central Government Employees and Workers, Tamil Nadu, said.

He added the Confederation will be forced to advance the indefinite strike call to July 4 instead of July 11, if the government does not heed to its demand of revising the hike.

Earlier in the day, its members staged a demonstration at Rajaji Bhavan in Chennai, home to several state government’s offices.

All India Trade Union Congress Secretary D L Sachdev said: “It is the lowest increase in last 17 years. Central trade unions will support the strike call given by central government employees.”

While, BMS said it will organise country-wide protests on July 8 against the decision, adding the government has “disappointed” the employees and it may lead to industrial unrest.

“The formula should be 3.42 instead of 2.57 as approved by the government. Similarly the annual increment should be 5 per cent instead of 3 per cent given. The disparity between the minimum and maximum pay has also been increased,” BMS General Secretary Virjesh Upadhyay said.

In a statement, he said the Sangh will organise protests across the country in all districts on July 8 and will discuss on the alternative of going on a strike at its national executive in August.

BMS also demanded for a uniform minimum pay of Rs 18,000 per month to all the workers including the private sector.

Highlights Of 7th Pay Commission Recommendations Cleared By Cabinet

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. It will come into effect from 01.01.2016.

“7th Pay Commission has an annual burden of Rs. one lakh two thousand crore, apart from which the arrears burden will likely increase by 12 thousand crore,” said Union Finance Minister Arun Jaitley.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th Pay Commission, and for 32 months at the time of implementation of 6th Pay Commission. However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.

The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year.

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

Highlights:

1. The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.

2. All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.

3. The minimum pay has been increased from Rs. 7000 to 18000 p.m. Starting salary of a newly recruited employee at lowest level will now be Rs. 18000 whereas for a freshly recruited Class I officer, it will be Rs. 56100. This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.

4. For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices. After taking into account the DA at prevailing rate, the salary/pension of all government employees/pensioners will be raised by at least 14.29 % as on 01.01.2016.

5. Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

6. The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

7. Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :

· Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
· A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
· Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
· Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
· Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

8. The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.

9. The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

10. The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.

11. The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.

12. The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.

13. Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.

14. As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.

Demand of minimum wage of Rs 26000/- & fitment formula of 3.71

The formal announcement by the of the 7th CPC acceptance is likely to be made by the Government just before the 11th July strike by the CG employees indicating the actual minimum wage and fitment formula.

Confederation of Central Government Employees and Workers Karnataka State

Comrades,

The empowered committee of Secretaries headed by the Cabinet Secretary had discussion from past five months on the charter of demands raised by the staff side, The finance ministry is working out the financial implications arising out of the improved recommendations of the 7th CPC especially on the minimum wage and fitment formula being improved, granting two increment on promotion and having annual increment on 1st Jan and 1st July instead of just on 1st July. This will benefit a lot of persons on promotion. The other aspect is considering grant of advances, which the 7th CPC has recommended for abolition.

The formal announcement by the of the 7th CPC acceptance is likely to be made by the Government just before the 11th July strike by the CG employees indicating the actual minimum wage and fitment formula.

The cabinet Secretary will present the view of the empowered committee of Secretaries before the Union Cabinet meeting based upon the principle adopted in actual calculation of the minimum wage and fitment formula. The 7th CPC had adopted the Dr Aykroyd formula minimum wage is calculated on the basis of the 15th ILC norms. But erred in many aspects for example the average of prices of last 12 months was taken, The housing weight age , education weight age etc . The prices of essential items are rising from past many years, even in last six months the retail inflation is rising above 5.4%.

Secondly the prices quoted by the GOVERNMENT OF INDIA MINISTRY OF LABOUR & EMPLOYMENT LABOUR BUREAU CLEREMONV, SHIMLAHttp://Labourbureaunew.Gov.In/ , the Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi & the retail market prices are varying .

If we calculate the minimum wage based upon the LABOUR & EMPLOYMENT LABOUR BUREAU taking prices as on 1st July 2015 the minimum wage works out to Rs 21,000 / and fitment formula works to 3.00. This will result in 34% wage hike without allowances.

If we calculate the minimum wage based upon the Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi taking prices as on 1st July 2015 the minimum wage works out to Rs 23,000 / and fitment formula works to 3.30. This will result in 50% wage hike without allowances.

If we calculate the minimum wage based upon the retail market taking prices as on 1st July 2015 the minimum wage works out to Rs 28,000 / and fitment formula works to 4.00. This will result in 70% wage hike without allowances.

The most important demand is that of the CG employees is the minimum wage and fitment formula.

The Staff side had demand of minimum wage of Rs 26000/- & fitment formula of 3.71. Against this the 7th CPC had recommended minimum wage of Rs 18000/- & fitment formula of 2.57. The 7th CPC recommendations has provided only at 14% wage hike at Group “C” level it is only ranging from Rs 2240/- to Rs 3500/- increase per month, and at Group “B” level ranging from Rs 4000/- to Rs 6500/- increase per month. After deductions & income tax the net increase will be just from Rs 500/- to Rs 3000/- only.

This increase is lowest by any pay commission, hence vast changes are required as the prices of essential commodities have gone up and also the inflation rate has gone up.

Comrades it is the time to struggle, we should educate the members and prepare for struggle, so that we should get at least 50 % wage hike without allowances, as allowances are not taken into pension benefit.

Only struggle will get us benefit. Please don’t believe on rumours. Now it is now or never.

Comradely yours

(P.S.Prasad)

General Secretary

Cabinet Unlikely To See 7th Pay Commission Award This Month

 The 7th Pay Commission award’s proposals on the new pay scale are unlikely to be placed before cabinet meeting this month as there were still indecision regarding pay raising for the central government employees and officers:

After taking final decision, the Empowered Committee will submit its updated report to the Finance Minister Arun Jaitely.

Well-placed sources told The Sen Times that the Empowered Committee of Secretaries headed by the Cabinet Secretary P K Sinha, which is processing the recommendations of the 7th Pay Commission and which ruled on central government employees’ pay hike fate did not get as far as determining whether it appropriate to hike 30 per cent basic pay. They added that the secretaries Committee wanted to see more data from Implementation Cell, so the pay scale for central government employees had not yet been completed.

“There are still complications regarding the new pay scale proposals; the Empowered Committee of Secretaries did not take a final decision of 30 percent basic pay hike during its meeting on June 13. They want to move to two other meetings to make final decision for overcoming the difficulties to fix new pay and allowances, after which it will be sent for cabinet nod,” a Finance Ministry official involved with the process told The Sen Times on condition of anonymity.

Sources at the implementation cell, however, said the already-prepared proposals were now awaiting directives from high-ups to be placed before the cabinet.

Media report said government is about to take a final call this week, as the Empowered Committee of Secretaries headed by the Cabinet Secretary met the PMO officials in this respect.

According to the media, the Empowered Committee of Secretaries have recommended 30 per cent hike in salaries of central government employees and the fitment factor is likely to be raised to around 2.7, up from 2.57 as recommended by the 7th Pay Commission.

As it stands, the 7th Pay Commission had recommended a minimum monthly basic salary of Rs 18,000 and maximum of Rs 2,50,000. A 30% hike would take the minimum basic monthly pay to Rs 23,500 and the maximum to Rs 3,25,000.

The media report said, that the starting salary of the central government employees is expected to be around Rs 24,000, up from Rs 18,000,

But a Finance Ministry official said the cabinet is not likely to take up the proposal of 7th Pay Commission award this month to hike the pay and allowances for the central government employees. Finance Ministry official made it clear that the final decision of 7th Pay Commission award will be taken by the Empowered Committee after its another two meetings with inputs of the Implementation Cell.

After taking final decision, the Empowered Committee will submit its updated report to the Finance Minister Arun Jaitely.

The Cabinet meetings later this month is understood to approve the proposal of Empowered Committee of Secretaries which is to be placed by Jaitley.

The 7th Pay Commission, headed by Justice A K Mathur, had originally proposed hike of 14.27 in basic pay, 23.55% in salary, allowances and pensions. The hike in allowances was recommended 63% while pension was proposed to rise 24% for about 48 lakh central government employees and 52 lakh pensioners with retrospective effect from January this year.

The government formed a 13- member secretary-level Empowered Committee in January to review the pay panel’s recommendations and an Implementation Cell has also been created in the Finance Ministry which works as the Secretariat of the Empowered Committee of Secretaries.

Secretaries group submits final report to Fin Min; Cabinet approval in 15 days

 It’s good news for central government employees eagerly waiting for the implementation of 7th Pay Commission.

The implementation of 7th Pay Commission appears to be a matter of a few days now. As per Dainik Jagran report, the Cabinet Secretary met the PMO officials on Wednesday and apprised them about the secretaries panel’s recommendations on the salary and allowances hike recommended for central government employees.

The secretaries panel reviewing the 7th pay commission’s recommendations have submitted its report to the Finance Ministry. The Finance Ministry will prepare a note and present it before the Cabinet in the next 15 days.

With the threat of strike by central government employees looming large, the Cabinet is expected to take a prompt decision on the recommendations resulting in notification.

The salary hikes recommended are expected to apply from July.

Empowered Committee Meeting was not held as scheduled

“The meeting is expected to take place on Tuesday, June 14”, said V.P. Mishra, President, Indian Public Service Employment Federation

New Delhi: The meeting of the Empowered Group of Secretaries reviewing the 7th Pay Commission, to finalize the payout to the central government employees did not take place as scheduled earlier on Saturday.

The office of the Cabinet Secretary confirmed that the meeting did not take place on Saturday. It did not reveal either when would the secretaries panel meet again to give the final shape to the salaries of central government employees.

“The meeting is expected to take place on Tuesday, June 14”, said V.P. Mishra, President, Indian Public Service Employment Federation. “When we met the Cabinet Secretary PK Sinha on June 3, he told us that we would be meeting on June 14”, added Mishra confirming that the 7th Pay Commission report is said to be finalised soon.

The AK Mathur led 7th pay panel report, which was released in November, had raised the minimum pay of central government employees to Rs 18,000 per month from currently drawn Rs 7,000, while the maximum pay recommended was Rs 2.5 lakh per month from Rs 90,000.

The employees unions decried the wage revisions suggested by the Commission as the “the lowest in the post independent history of the country”, and said a “meager rise of 14% alone was recommended by the Commission to be effective for a long period of ten years.”

The Empowered Committee of Secretaries, which was set up in January to review the 7th Pay Commission’s recommendations, is expected to meet on Tuesday and is expected to finally decide how the monthly package of central government employees will shape up.

“We have give our recommendations, and the Cabinet Secretary told us that we are looking into these”, added Mishra.

“It (Empowered Committee of Secretaries) is a divided house, but good number of people agree that what we are saying has a point”, said KKN Kutty, President, Confederation of Central Government Employees & Workers.

The Confederation is demanding the minimum salary of Rs 26,000 per month. ” The Staff side had computed the minimum wage as on 1.1.2014 at Rs. 26,000, The rates were taken on the basis of the actual retail prices in the market as on 1.1.2014 (average prices of 8 Cities in the country) substantiated by the documentary evidence of Cash bill obtained from the concerned vendors. As on 1.12016, the minimum wage work out to Rs. 29339, rounded off to Rs. 30,000″, said the Confederation in its Charter of demand.

It has done everything possible to get the maximum payout under 7th Pay Commission. The Confederation has decided to go on strike from July 11, if its charter of demand are not met by the government, and has already given the strike notice to the Cabinet Secretary.

There are nearly 47 lakh employees and over 50 lakh pensioners in India on central government payrolls currently.

The Empowered Committee of Secretaries was set up in January has and involved all the stake holders involved–central government unions, departments, ministries and all other – and will complete deliberations in todays meeting and decide the final monthly payout.

Source : Zee News

National Mazdoor Conference (NMC) seeks PM’s intervention for release of 7th Pay Panel report

 National Mazdoor Conference (NMC) President Subash Shastri sought the Prime Minister Narendra Modi’s intervention for early release of Seventh Pay Commission report for Central Government employees and requested him to ask the Empowered Committee of Secretaries (COS) headed by Cabinet Secretary P.K Sinha to early finalise the review of the Seventh Pay Commission recommendations for cabinet nod.


Shastri expressed concern over the slow processing in respect of Seventh Pay Commission recommendations adding that the effect to the recommendation should have been given by January 2016 itself, but the long delay is intriguing.


An Empowered Committee of Secretaries, headed by Cabinet Secretary P.K Sinha, has been set up on 27th January, to process for implementation the report of the Seventh Pay Commission, he added.


Shastri however hailed the significant recommendation of Seventh Pay Commission’s report favored introduction of a health insurance scheme for central government employees and pensioners and doubling the gratuity ceiling to Rs 20 lakh and demanded implement the same recommendation in favor of State Government employees and pension.