Karnataka COC – CG Staff News

Central Govt should increase Minimum Pay and Fitment formula – Karnataka COC

Sony — Tue, 29 May 2018 12:39:36 +0000

Central Govt should increase Minimum Pay and Fitment formula – Karnataka COC

Revision of Minimum Pay and Fitment formula due to increased revenue collections of the Central Government

Comrades,
Today none of the 7th CPC related demands of Central Government Employees are settled. The assurance given by the Group of Ministers to the NJCA leaders regarding increase in Minimum Pay and Fitment formula is in paper even after a lapse of 20 months. Now the Finance Minister has replied in Parliament that “no change in Minimum Pay and Fitment formula is at present under consideration”.

To avert the 11th July CG employees strike the Hon’ble Prime Minster had instructed the group of Hon’ble Ministers including Shri Rajnath Singhji, Hon’ble Home Minister, Shri Suresh Prabhuji , Hon’ble Railway Minister and Shri Arun Jaitelyji , Hon’ble Finance Minister to hold discussions with the Staff Side (JCM) on 30th June 2016 and the Shri Arun Jaitelyji , Hon’ble Finance Minister had published a written assurances in the Government website on 6th July 2016 leading to deferment of the strike .

Pay Commission Objective: It is the endeavour of every pay commission to ensure that the pay and allowances of employees should be ‘fair and reasonable’. The pay structure should also motivate the employees to reasonable levels of performance in the tasks assigned to them, so that the general public derive the benefit of their service as intended.

Our demand of revision of Minimum Pay and Fitment formula is quite justified.

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
2^nd CPC	1959	Rs 55/-	Rs 80/-	1.45 times
3^rd CPC	1973	Rs 80/-	Rs 196/-	2.45 times
4^th CPC	1986	Rs 196/-	Rs 750/-	3.82 times
5^th CPC	1996	Rs 750/-	Rs 2550/-	3.40 times
6^th CPC*	2006	Rs 2550/-	Rs 7000/-	2.74 times
7^th CPC*	2016	Rs 7000/-	Rs 18000/-	2.57 times

Comparative picture of pay of Central Government and State Government in regards to minimum wage as on 1.7.2017

Many of the State Governments are following the Central Government pay scales, but a few state Governments have improved upon the Central Government pay scales. The examples are as under:

Government Agency	Group “D” Basic pay in Rs	Add Skill 25% from Group “D” to Group “C”	Group “C” Basic Pay in Rs	DA %	Add DA Amount in Rs	Basic Pay in Group “C” in Rs
Govt. of India		Nil	18000	5	900	18900
Andhra Pradesh & Telangana	13000	3250	16250	24.1	3916	20166
Kerala	16500	4125	20625	14	2887	23512
Karnataka	17000	4250	21250	Nil		21250

The financial position of the Central Government is very good. Even the GDP (Gross Domestic Product) has shown increase in last few years which is around 7% , the Indian economy is fastest growing and placed 7th in the world ( which is at 2,250.987 billions of $ ), comparing to wages paid in the world our wages are at lower level. The Government fiscal budget deficit equal to 3.50 percent of the country’s Gross Domestic Product in 2016. Compared to 2008 where the fiscal deficit was at 7.8 %, but today the fiscal deficit is contained at 3.5%. This is also a healthy sign of the economic status of the Central Government financial status, the budget fiscal deficit is always below 4%.

Direct tax collections in 2017-18 at Rs 9.95 lakh crore, exceeded the revised budgetary target of Rs 9.8 lakh crore. Also, 6.84 crore income tax returns filed in the year against 5.43 crore in the previous year signalling a rise of 26 % . A net of 99.5 lakh new assesses were added to the tax net.

Net collection from corporate tax went up 17.1 per cent while that from personal income tax rose 18.9 %.

The revenue collection from Goods and Services Tax (GST) exceeded Rs 1 lakh crore in April 2018, GST revenue collected in April 2018 came at Rs 1,03,458 crore.

With the improved economic climate, introduction of e-way bill and improved GST compliance, GST collections would continue to show a positive trend.

The wage bill of the Central Government on in its employees is less than 10% or 3.4% of the GDP, which is less compared to various countries world wide .

Vacancy of the Central Government is about 15 % , more than 4 lakhs vacancies are existing in the Central Government the work load is being carried out by the existing employees. The Government being a model employer should pay for its employees and motivate them to work more for implementation of its policies.

Hence due to the improved revenue earning of the Central Government, as assured to the staff side JCM by the Group of Ministers in respect of increase of Minimum Pay and Fitment formula, the Central Government should increase the Minimum Pay and Fitment formula.

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Minimum wage and fitment formula for Central Government Employees

Sony — Tue, 27 Sep 2016 16:19:18 +0000

Minimum wage and fitment formula for Central Government Employees

Comrade,

The 7th CPC while calculating the minimum wage of Central Government Employees has arrived at Rs 18,000/- the 7th CPC has erred in prescribing provision to cover education, recreation, ceremonies, festivals and medical expenses has been moderated to 15 percent against the provision of 25% . Supreme Court’s ruling in the Raptakos Brett Vs Workmen case of 1991 , the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage.

The Hon’ble Minister of Labour & Employment Shri Bandaru Dattatreyaji in his press statement on 24-September-2016 has stated in Understanding Minimum Wages and Bonus article as follows.

“The norms recommended by the Indian Labour Conference, in 1957, fox fixing the minimum wages are: (a) consumption units for one wage earner; (b) minimum food requirements of 2700 calories per average Indian adult; (c) clothing requirements of 72 yards per annum per family; (d) rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme; and (e) fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage.

In 1991, the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage.”

If this provision is alone adopted should have been adopted by the 7th CPC, the minimum wage would have increased by more than 10% and worked out to Rs 20,000/-. The fitment formula will work out to 2.86. If the entire minimum wage is recalculated based on actual retail prices as on July 2015 without applying average of 12 months and correct methodology the minimum wage would be Rs 26,000/ and fitment formula would be around 3.5 .

The minister statement should be applied by the Government in true spirits and the minimum wage and fitment formula should be enhanced accordingly.

Comradely yours
(P.S.Prasad)
General Secretary

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

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7th CPC and Central Government finances – Karnataka COC

Sony — Thu, 21 Jan 2016 03:00:44 +0000

7th CPC and Central Government finances

Comrades,
There are various reports in the media about the impact of the 7th CPC recommendations on the common man and the government resources at large, the reports suggest that the Government may postpone the 7th CPC implementation also till its finances are set right.

These reports are totally wrong.

A) Let us examine the Revenue Secretary Shri Hasmukh Adhia statements which are also published in the news papers.

“So far, 1.8 crore refunds for assessment year 2015-16 have been processed, he said. In the past, refunds have been held up for years as the government sought to show healthier finances.”

“Data released by the government showed that over Rs 5 lakh crore was locked up in tax disputes at various levels, with some of the cases going back over 10 years. In value terms, over half the cases related to income tax with 30% of the cases involving corporation tax.”

B) The crude oil prices has come down from 140$ to just 30$ a barrel in last year thus the Central Government finances have improved a lot.

Read more at : http://karnatakacoc.blogspot.in/

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Model Minimum Wage Calculation Using Dr. Aykroyd Formula and 15th ILO Norms as on 1.7.2015 – Karnataka COC

Sony — Mon, 14 Sep 2015 17:08:29 +0000

Model Minimum Wage Calculation Using Dr. Aykroyd Formula and 15th ILO Norms as on 1.7.2015 – Karnataka COC

Minimum Wages Fitment Formula and Wage Hike.

Comrades,
There are number of unwanted articles on minimum wage, fitment formula and wage hike on many websites which are not true and create confusion among the Central Government Employees. This type of the articles also give wrong impressions and give wrong signals to the Government, these articles are written without having basic knowledge of the price rise and minimum wage calculation.

The minimum wage calculation is given below. Hence it is requested to go through the below calculation of minimum wages, as the 7th CPC has indicated the use of using Dr. Aykroyd formula and 15th ILO norms for calculation of minimum wages. The rates are taken from Government shops (retail prices are 10% more than Government prices) . The rates to be taken up by the 7th CPC may vary only marginally.

We should actually wait for the 7th CPC to give its report and then we should react and staff side JCM shall take necessary steps in this regard. Let us stop all such unwanted gossips of minimum wage, fitment formula and wage hike. The model minimum wage calculated using Dr. Aykroyd formula and 15th ILO norms as on 1st July 2015 is given below.

Item	Per Month	Average	Amount
	3 units	Rate
	in Kgs/ mt
Rice (fine) & Wheat atta	42.75	40	1710
Dal	7.2	140	1008
Raw Vegetables	9	41	369
Green Vegetables	11.25	45	507
Other Vegetables	6.75	55	372
Fruits	10.8	75	810
Milk Dairy	18	33	594
Sugar	5	39.5	198
Edible Oil	3.6	114	410
Fish	2.5	410	1025
Meat Mutton	5	450	2250
Egg	90	5	450
Detergents*	1	161.58	162
Clothes	5.5	250	1375
Total			11241
Miscellaneous @ 20%			2248.2
Total			13489
Additional @ 25%			3372.3
Total			16861.5
Add 10% housing			1686
Minimum pay for unskilled worker in the erstwhile Group “D”			18547.5
Add 25% for Group “C” ( as proposed by 6th CPC )			4636.875
Total			23184.375
Add 6% more prices from 1st July 2015 to 1st Jan 2016			1391.04
Total amount		Rs 24575/-

Minimum pay for skilled worker in Group “C”

Say Rs 25,000/-

Fitment formula = Rs 25000/7000 = 3.5

The main goal is to educate the Central Government Employees and prepare for the struggle path in case the important demands expected of the 7th CPC are not met.

A) Minimum wage of Rs 25,000/- as per Government prices.
B) Fitment formula of 3.5
C) Wage hike of more than 60%.
D) Proper pay scales with proper increment rate.
E) Proper promotion policy and proper allowances.
F) Wage revision from 1/1/2014.

DA as likely on 1st Jan 2016 is likely at 125%.

After 7th CPC implementation it will DA will be zero %

Existing Basic Minimum wage is Rs 7000/- as on 1/1/06

Add 125% DA as on 1/1/2016 =Rs 8750/-

Total existing Minimum Wage as on 1/1/2016 is Rs 15750/-

If the Minimum wage is fixed at Rs 25,000/-

Net Increase shall be Rs 9250/-

Net Increase should be 60%.

Comradely yours

(P.S.Prasad)
General Secretary

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

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