National Council (Staff Side)
Joint Cinsultative Machinery
for Central Government Employees
13-c, Ferozshah Road, New Delhi- 110001

Shiva Gopal Mishra
Secretary

No.NC-JCM-2016/7th CPC

August 12,2016

Shri Arun Jaitley,
Hon’ble Finance Minister,
Govt. of India,
North Block,
New Delhi

Sub: Setting up of a high level committee to review the Minimum Wage Multiplication Factor.

Ref: Our letter of even No. dated 26.7.2016.

Dear Sir,

We solicit your kind reference to the discussion, the representatives of NJCA had with you in the presence of the Honourable Home Minister, Shri Rajnath Singh and the Railway Minister, Shri Suresh Prabhu and the MOS (R) Shri Manoj Sinha on 30th June, 2016.

We were expecting a quick action on the part of the Government to operationalise the assurance of setting up a high level Committee to go into the Minimum wage, Multiplication factor etc. However, we are disappointed that even after a lapse of more than a month no order has been issued by the Government in this regard. The employees, as you are aware, were angry over the arbitrary determination of the minimum wage by the 7th CPC by mutilating the Dr. Aykhroyd formula and also the propornate multiplication factor.

We, therefore, appeal to you that the concerned authorities may be asked to expedite the issuance of orders setting up the committee and finalization of the Report within the available time of remaining three months.

Thanking you,

Yours faithfully,

sd/-
(Shiva Gopal Mishra)
Secretary

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It is well known that Multiplication Factor 1.86 was being used by the 6th Pay Commission to calculate the new revised basic pay. The 6th Pay Commission had initially suggested 1.74, but it was later modified to 1.86. The Multiplication Factor was arrived at by adding dearness allowance percentage to the basic pay with a simple methodology. The 6th Pay Commission also brought in a new concept called the Grade Pay. So, the basic pay diveded into two segments, which are called as Band Pay and Grade Pay. Now that Grade Pay is not going to be included, it remains a mystery as to how the 7th Pay Commission will calculate the new Multiplication Factor.

A lot of speculations are now on about this. With plenty of rumours afloat that salaries for Central Govt employees could increase twofold, an article was published by 90Paisa Blog recently, which claimed that only a 30% hike in salary is sure to come. The article had used a Multiplication Factor of 2.68. Last month, www.gservants.com claimed that the 7th Pay Commission may recommend a Multiplication Factor of 2.86. The website created waves when it published a projected basic pay structure by using a Multiplication Factor of 3.

“CLICK TO CALCULATE YOUR NEW BASIC PAY WITH MULTIPLICATION FACTOR“

The NC JCM Staff Side, in its memorandum to the 7th Pay Commission, suggested that a Multiplication Factor of 3.7 be used for calculation of new basic pay. They had also given a detailed explanation for it. And one more, the Karnataka COC, which is an organization for Central Government employees, had demanded a Multiplication Factor of 3.85, and gave its own reasons for it.

All these are mere speculations…!

It’s up to the employees to believe what they want to. We have given a calculator to find out the new basic pay based on the most likely Multiplication Factor that could be recommended by the 7th Pay Commission.

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“Members of the National Council JCM, which represents over 40 lakh Central Government employees all over India, met with the team of higher officials of the 7th Central Pay Commission on 9.6.2015”

It was revealed that the meeting with the 7th CPC was very satisfactory. By the end of August, the committee will submit its recommendations and from Jan 2016, the new pay scale, including all the allowances, will be implemented based on this report.

Elaborate discussions were held on crucial issues like Principles of wage determination and Minimum Wage & Ratio of Minimum and Maximum Pay. Also, popular demands like qualification related pay scales, and grant of increment to those retiring on June 30 and December 31, were also presented.

Issues over the fixing of pension parity between past and future pensioners. And the discrepancies in these methods and retirement benefits including revision of pension were also discussed.

JCM urged that the Need-Based Minimum Wage concept to compute pay at the minimum level may be adopted. Pay Commission should take into account the outside rates to determine the pay package at senior levels of bureaucracy but maintain the ratio between the minimum and maximum at 1 : 8 (MTS to Secretary to Govt. of India).

Staff side demanded open- ended pay scales to ensure that no employee stagnates without increment. We have suggested only 14 Pay scales. Minimum of which is Rs. 26000 and Maximum Rs. 78000 for Group C employees. We suggested that the multiplication factor (26000/7000 = 3.7) may be applied uniformly in all the cases to arrive at the revised pay in the new scales of pay. We also suggested that the benefit on promotion, therefore, should be: two increments in the feeder cadre.

A request was made to rectify the defects in the MACP scheme. NC JCM insists to grant five promotions in the service career. It should be given on their hierarchical basis.

Staff Side requested to remove the ceiling of Rs.3500 and request to recommend to the Central to grant the bonus on the basis of the actual emolument of the employee.

The JCM demanded for Educational Assistance for two children, instead of two eldest children, and also to pay the same for Post Graduate and Professional Courses.

The National Council requested to the 7th CPC to review and recommend the scarping of NPS in the light of the observations made by Hon’ble supreme court that pension is a fundamental justify.

This article originally posted at cgstaffnews.in – For timely updates, follow on facebook

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