HomeSeventh Pay Commission

7th CPC: Providing proper minimum wage of Rs 27000/- for CG Employees Pay fixation formula

Providing proper minimum wage of Rs 27000/- for CG Employees including that
of GDS employees and pay fixation formula:

The staff side of the JCM had given representation demanding Rs 10,000/- as
minimum wage for Central Government Employees. The 6th CPC in its report
vide para no 2.2.15 had calculated a minimum wage of Rs 5478/- today if we
are calculate the minimum wage it should be more than Rs.21,000/- apart
from HRA and other allowances. Hence there is three times increase in
actual prices calculated by the 6th CPC and the current prices.The current
wages of the CG Employees should be doubled at least including that of GDS.

The most comprehensive criteria for covering all the basic needs were
evolved by the 15th Indian Labour Conference (ILC) in 1957 for fixing
minimum wages. The norms are that a need-based minimum wage for a single
worker should cover all the needs of a worker’s family consisting of a
spouse and two children.


The food requirement was to be 2,700 calories, 65 grams of protein and
around 45-60 grams of fat as recommended by Dr Wallace Aykroyd for an
average Indian adult of moderate activity. Dr Aykroyd pointed out that
animal proteins, such as milk, eggs, fish, liver and meat, are biologically
more efficient than vegetable proteins and suggested that they should form
at least one-fifth of the total protein.
Dr Aykroyd
worked on nutrition for nearly 30 years and was director of the Nutrition
Division, Food and Agriculture Organisation, United Nations. In 1935, he
was appointed Director of the Government’s Nutritional Research Centre in
India, situated in Coonoor in the south.
The 15th ILC further resolved that clothing requirements should be based on
per capita consumption of 18 yards per annum, which gives 72 yards per
annum for the average worker’s family. For housing, the rent corresponding
to the minimum area provided under the government’s industrial housing
schemes was to be taken. Fuel, lighting and other items of expenditure were
to constitute an additional 20% of the total minimum wage.
The Supreme Court upheld these criteria in the case of Unichoy vs State of
Kerala in 1961. In the later Raptakos Brett Vs Workmen case of 1991, the SC
went one step further, and held that besides the five components enunciated
by the 15th ILC, minimum wages should include a sixth component, amounting
to 25% of the total minimum wage, to cover children’s education, medical
treatment, recreation, festivals and ceremonies. The SC also observed that
a wage structure including the above six components would be “nothing more
than minimum wage at subsistence level” which the workers must get “at all
times and under all circumstances”.
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Minimum Salary-Analysis &Recommendations para 2.2.15
The Commission, however, agrees that the norms set by the 15th
International Labour Conference (ILC) are appropriate for computing minimum
salary. It is also observed that the minimum salary is applicable at the
time a person joins the Government which will usually be at a young age
when a person may be just married and will not have responsibility of
parents or many children.

Accordingly, the family unit for minimum salary can only be taken as
three.


The Minimum Salary should be based on 6 units not three units as per
6th CPC calculation.

As both parents and two children are depending on the salary of Government
servant apart from spouse. the additional burden the employees will carry
after a few years of service as his parents would have retired from service
and are wholly dependent on him also his children would have stepped into
school / college level, even small baby requirements are much unlike in the
past years, the hence the minimum wage he gets will not compensate with the
family financial burden Hence the whole calculations needs a undergo a
drastic change in next CPC taking into account of 6 units rather than 3
units .
The Sixth Central Pay Commission has recommended a minimum wage of Rs
6600/- per month against the demand of Rs.10,000/- per month as worked out
by Staff side of JCM. Today the minimum need based wage works out to
Rs.21,000/ per month+ HRA+ allowances.The general minimum expenses per
month for a family of four members are as follows when a Government servant
joins the duty with two small children:

a) Vegetables Rs.3000/- 
b) Food Grains /Groceries Rs.7000/-. 
c) House rent single room Rs.6000/- 
d) Clothing Rs.3000/- 
e) Children education and their expenses Rs.2000/- 
f) Electricity Chargers Rs.800/- 
g) Water Charges Rs.250/- 
h) Transportation charges Rs.1000/- 
i) TV cable rent Rs.300/- 
j) Medical Expenses Rs.500/- 
k) Mobile expenses Rs.250/- 
l) Cooking Gas Rs.450/- 
m)Recreation charges Rs.500/- 
n) Personal expenses Rs.1000/-



Total Rs 26500/-Hence minimum wage works out to Rs 27,000/-
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The expenses will increase as the age of Government servant goes up and
family responsibility will increase as he has to educate the children in
professional courses, marriage of his children has to be performed, his
medical expenses will increase, his parents will stay with him and now
there are quite dependant on the Government servant for their lively hood.
As such the salary should be more to meet his expenses. The Government is a
model employer hence the wages should be provided with the needs.
Table:

Fixation of Minimum wage as on 1.1.2006 as per 15 ILC norms as per Table
2.2.1 of the 6th CPC report and the minimum wage as per current prices we
compare minimum wage should be three times the 6th CPC recommendations.
Items
Per day PCU (In grams)
Per Month 3CU
(In kg)
Price per Kg. taken by 6th CPC
(In Rs.)

Total Cost as per rates of 6th CPC (in Rs.)
As on
1-1-2006

Price per Kg. as per prevailing market rates
(in Rs.)
1-6-13
at Bangalore
Total cost as per prevailing rates
(in Rs.)
1-6-2013
Rice/wheat 475 42.75 18 769.5 55 2351
Dal (Toor/Urad/Moong 80 7.2 40 288 80 576
Raw Veg. 100 9.00 10 90 60 600
Greenlead Veg 125 11.25 10 112.5 40 400
Other Veg. 75 6.75 10 67.5 45 450
Fruits 120 10.80 30 324 80 864
Milk 200 Ml 18 Lt. 24.00 432 35 630
Sugar and Jaggery 56 5.00 24.00 120 45 225
Edible Oil 40 3.6 50 180 100 360
Fish 2.5 120 300 180 450
Meat 5.00 120 600 375 1875
Egg 90 02 180 04 360
Detergents etc 200 200 400 400
Clothing 5.5 Mt. 80/Mt 440 200 1100
Total 4103.5 10641
Misc. @ 20% 827 2660
Addl. Exp @

25% **
400 3325
Total 5330.5 16626
Housing @

10% ****
148 600 ^
Grand Toal 5478.5 17226

Source: Average market rates in Kolkata, Chennai, Delhi and Mumbai as
indicated in the Economic Times & Other major dailies (element of 20%
has been added to cover the increase in cost in retail sale).


Notes PCU = Per day Consumption Unit 3CU = Three Consumption Units that
is wife, husband and a child no parents or second child is taken into
account.
* 20% Miscellaneous charges towards fuel, electricity, water etc.
** Additional Expense at the rate of 25% includes expenditure towards
education, Medical treatment, housing, recreation, festivals etc.
# Has been taken as Rs.400 because separate allowances for education,
medical Treatment and housing exist in the Government. Consequently, only the 

expenditure 
Towards recreation & festivals need to be taken in account.
^ Being the license fee chargeable for government accommodation at an  average rate of 3% of the basic pay.

Total minimum wage is Rs 17225+ HRA Rs 7000/- + Transportation Allowance Rs
2500/-= Rs 26725 that is Rs 27,000/-
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The fixation of minimum basic pay of Rs 21000/- is taking into the
account of minimum skill and education requirement as 10th Standard as
prescribed by the 6th CPC. As the education requirement is more such as
Diploma in Engineering or Degree in Science or Commerce, then the
minimum basic pay should be Rs.40,000/- (8700+4200) X 3 = Rs 39,000/-.
For Engineering Graduates and Master Degree it should be Rs 65,000/- .


The pay scales should start with a minimum basic pay including Grade
Pay of Rs 21,000/- to end with 2, 10,000 with a ratio of 1:10 of
minimum scale and maximum scale. Since government is a model employer
they should provide minimum wages as per the 15 ILO conference and
other wages as per the educational qualification & skill
requirement of the job.

The multiplying factor is calculated as below:
The existing basic pay + Grade pay+ DA 100%+ weightage of 100% ( that is
the difference between the actual price rise and the DA paid) that is the
multiplying factor works out to three.
Note: The actual price rise is over 200% the DA is only 90%.
Or
The existing basic pay + grade pay+ DA 100%+DA merger = Net wage +
weightage of 70% (that is the difference between the actual price rise and
the DA paid).
The pay scales should have a multiplying factor of three, that means the
existing pay scales and pay (basic pay + GP) should be multiplied by
three.The pay scales arrived should not have any bunching of basic pay as
done in the 5th CPC. The time scales should last for more than 10 years so
that there is no stagnation.
The concept of fair wages has been deprived to CG Employees. Usually pay
commissions had adopted a multiplying factor of 3.2 to 3.8 to arrive at the
new scales compared to earlier scales. But the VI CPC adopted conversion
factor of about 2.6 at the lowest where as it was about 3.6 at the highest
scale. By this method well established ration 1:12 between the lowest scale
and highest scale was disturbed by the VI CPC.
The minimum pay & band pay fixed by the 6th CPC was very low compared
all other pay commissions for example a new recruit for the post of LDC his
pay is Rs 5200+ 1900 = Rs 7100/- + allowances, that should have been
actually Rs 3050 multiplied by 3.6 times which works out to Rs.11000/- .
In case of a Graduate or Diploma holder as per 6th CPC it is Rs 9300 +
4200= Rs 13500/- + allowances, that should have been actually Rs 5000
multiplied by 3.6 times which works out to Rs 18000/- .
In case of a Master degree holder as per 6th CPC it is Rs 9300 + 4800= Rs
14100/- + allowances, that should have been actually Rs 6500 multiplied by
3.6 times which works out to Rs 23000/- .
[next]

Hence the justification of multiplying factor of three is justified.


The ratio between the lowest and highest scales should not more than
1:10


III PAY COMMISSION VS IV PAY COMMISSION GROUP D,C and B
S.N III PAY COMMISSION PAY SCALES IV PAY COMMISSION PAY SCALE INCREASE

(X) TIMES
1. a) 196-3-220-EB-3-232
750-12-870-EB-14- 940
3.8
b) 200-3-212-4-232-EB-4-240(SG)
2. a) 200-3-212-4-232-EB-4-240
775-12-955-EB-14-1025
3.8
b) 200-3-206-4-234-EB-4-250
3. a).210-4-250-EB-5-270
800-15-1010-EB-20-1150
3.8
b) 210-4-226-EB-4-250-EB-5290
4. 225-5-260-6-EB-6-308
825-15-900-EB-20-1200
3.7
5. 260-326-EB-8-350
950-20-1150-EB-25-1400
3.7
6. a) 290-6-326-EB-8-350
950-20-1150-EB-25-1500
3.4

b) 260-6-290-EB-6-326-8-366-EB-8-390-10- 400
7. 260-8-300-EB-8-340-10-380-EB-10-430
975-25-1150–EB-30-1540
3.7
8. 330-8-370-10-400-EB-10-480
1200-30-1440–EB-30-180
3.6
9. a) 330-10-380-EB-12-500-EB-15-560
1200-30-1560-EB-40-2040
3.6
10. a) 380-12-500-15-530
1320-30-1560-EB-40-2040
3.5
b) 380-12-500-EB-15-560
11. a)380-12-440-EB-14-560-EB-20-640
1350-30-1440-40-1800-EB-
50-2200
3.5
b) 425-15-530-EB-15-560-20-600
12
c) 425-15-560–EB-20-640
1400-40-1800-EB-50-2300
3.3
b) 425-15-500-EB-15-560-20-700
c) c) 455-15-560-20-700
13
a) 425-15-500-EB-15-560-20-640-EB-20- 700-25-750
1400-40-1600-50-2300-EB-
60-2600
3.3
b) 425-15-500-EB-15-560-20-700-EB-25- 800
c) 470-15-530-EB-20650-EB-25-750
14 a) 550-20-650-25750
1600-50-2300-EB-60-2660
2.9
b) 550-20-650-25-800
15 a) 500-20-700-EB-25-900
1640-60-2600-EB-75-2900
3.1
b) 550-25-750-EB-30-900
16 a) 650-30-74035-800-EB-40-960
2000-60-2300-EB-75-3200
2.8
b) 650-30-740-35-880-EB-40-1040
c) 700-30-760-35-900
d) 775-35-880-40-1000
17
650-30-740-35-810-EB-880-40-1000-EB-40-1200
2000-60-2300-EB-75-3200-
100-3500
3.0
18 a) 840-40-1040
2375-75-3200-EB-100-3500
2.8
b) 840-40-1000-EB-40-1200
19 a) 650-30-740-35-880-EB-40-1040
2000-60-2300-EB-3200-100- 3500
3.0

b) 650-30-740-35-810-EB-35-880-40-1000- EB-40-1200

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IV CPC PAY SCALES VS V CPC PAY SCALES
FOURTH PAY COMMISSION PAY SCALES
FIFTH PAY COMMISSION PAY SCALES
INCREASE X TIMES
1 750-12-870-14-940 S-1 2550-55-2660-60-3200 3.4
2 775-12-871-14-1025 S-2 2610-60-3150-65-3540 3.3
3 800-15-1010-20-1150 S-3 2650-65-3300-70-4000 3.3
4 825-15-900-20-1200 S-4 2750-70-3800-75-4400 3.3
5 950-20-1150-25-1400 950-20-1150-

25-15001150-25-1500
S-5 3050-75-3950-80-4590 3.2
6 975-25-1150-30-1540 975-25-1150-

30-1660
S-6 3200-85-4900 3.3
7 1200-30-1440-30-18001200-30-1560-

40-2040 1320-30-1560-40-2040
S-7 4000-100-6000 3.3
8 1350-30-1440-40-1800-50-2200 1400-

40-1800-50-2300
S-8 4500-125-7000 3.3
9 1400-40-1600-50-2300-60-2600 1600-

50-2300-60-2660
S-9 5000-150-8000 3.5
10 1640-60-2600-75-2900 S-10 5500-175-9000 3.35
11 2000-60-2120 S-11 6500-200-6900 3.25
12 2000-60-2300-75-3200 2000-60-2300-

75-3200-3500
S-12 6500-200-10500 3.25
13 2375-75-3200-100-3500 2375-75-

3200-100-3500-125-3750
S-13 7450-225-11500 3.13
14 2500-4000 (proposed new pre- revised scale) S-14 7500-250-12000 3
15 2200-75-2800-100-4000 2300-100-

2800
S-15 8000-275-13500 3.5
16 2630/- FIXED S-16 9000/- FIXED 3.42
17 2630-75-2780 S-17 9000-275-9550 3.42
18 3150-100-3350 S-18 10325-325-10975 3.2
19 3000-125-3625 3000-100-3500-125-

4500 3000-100-3500-125-5000
S-19 10000-325-15200 3.3
20 3200-100-3700-125-4700 S-20 10650-325-15850 3.32
21 3700-150-4450 3700-125-4700-150-

5000
S-21 12000-375-16500 3.24
22 3950-125-4700-150-5000 S-22 12750-375-16500 3.22
23 3700-125-4950-150-5700 S-23 12000-375-18000 3.24
24 4100-125-4850-150-5300 4500-150-

5700
S-24 14300-400-18300 3.4
25 4800-150-5700 S-25 15100-400-18300 3.1
26 5100-150-5700 5100-150-6150 5100-

150-5700-200-6300
S-26 16400-450-20000 3.2
27 5100-150-6300-200-6700 S-27 16400-450-20900 3.2
28 4500-150-5700-200-7300 S-28 14300-450-22400 3.1
29 5900-200-6700 5900-200-7300 S-29 18400-500-22400 3.1
30 7300-100-7600 S-30 22400-525-24500 3
31 7300-200-7500-250-8000 S-31 22400-600-26000 3
32 7600/- FIXED7600-100-8000 S-32 24050-650-26000 3.1
33 8000/- FIXED S-33 26000/- FIXED 3.2
34 9000/- FIXED S-34 30000/- FIXED 3.3

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Comparison of pay scales of the 4th CPC , 5th CPC and 6th CPC




SL. No
4th CPC Pay scale w.e.f.
1.1.1986

5th CPC Post/Grade and Pay scale w.e.f. 1.1.1996

6th Central Pay Commission w.e.f. 1.1.2006
Corresponding
GRAD E
SCALE
Name of Pay Band/Scale
Pay Bands/ Scale
Grade Pay
1 750-12-

870-14-

940
S-1 2550-55-

2660-60-3200
-1S 4440-7440 1300
2 775-12-

871-12-

1025
S-2 2610-60-

3150-65-3540
-1S 4440-7440 1400
3 775-

12871-14-

955-15-

1030-20-

1150
S-2A 2610-60-

2910-65-

3300-70-4000
-1S 4440-7440 1600
4 800-15-

1010-20-

1150
S-3 2650-65-

3300-70-4000
-1S 4440-7440 1650
5 825-15-

900-20-

1200
S-4 2750-70-

3800-75-4400
PB-1 5200-20200 1800
6 950-20-

1150-25-

1400/950-

20-1150-

25-

1500/1150

-25-1500
S-5 3050-75-

3950-80-4590
PB-1 5200-20200 1900
7 975-25-

1150-30-

1540/975-

25-1150-

30-1660
S-6 3200-85-4900 PB-1 5200-20200 2000
8 1200-30-

1440-30-

1800/1200

-30-1560-

40-

2040/1320

-30-1560-

40-2040
S-7 4000-100-

6000
PB-1 5200-20200 2400
9 1350-30-

1440-40-

1800-50-

2200/1400

-40-1800-

50-2300
S-8 4500-125-

7000
PB-1 5200-20200 2800
10 1400-40-

1600-50-

2300-60-

2600/1600

-50-2300-

60-2660
S-9 5000-150-

8000
PB-2 9300-34800 4200
11 1640-60-

2600-75-

2900
S-10 5500-175-

9000
PB-2 9300-34800 4200
12 2000-60-

2120
S-11 6500-200-

6900
PB-2 9300-34800 4200
13 2000-60-

2300-75-

3200/2000

-60-2300-

75-3200-

3500
S-12 6500-200-

10500
PB-2 9300-34800 4200
14 2375-75-

3200-100-

3500 /

2375-75-

3200-100-

3500-125-

3750
S-13 7450-225-

11500
PB-2 9300-34800 4600
15 2500-4000 S-14 7500-250-

12000
PB-2 9300-34800 4800
16 2200-75-

2800-100-

4000/2300

-100-2800
S-15 8000-275-

13500
PB-2 9300-34800 5400
17 2200-75-

2800-100-

4000
NEW SCALE 8000-275-

13500 (Group A Entry)
PB-3 15600-39100 5400
18 2630/- FIXED S-16 9000 PB-3 15600-39100 5400
19 2630-75-

2780
S-17 9000-275-

9550
PB-3 15600-39100 5400
20 3150-100-

3350
S-18 10325-325-

10975
PB-3 15600-39100 6600
21 3000-125-

3625/3000

-100-3500-

125-4500 /

3000-100-

3500-125-

5000
S-19 10000-325-

15200
PB-3 15600-39100 6600
22 3200-100-

3700-125-

4700
S-20 10650-325-

15850
PB-3 15600-39100 6600
23 3700-150-

4450/3700

-125-4700-

150-5000
S-21 12000-375-

16500
PB-3 15600-39100 7600
24 3950-125-

4700-150-

5000
S-22 12750-375-

16500
PB-3 15600-39100 7600
25 3700-125-

4950-150-

5700
S-23 12000-375-

18000
PB-3 15600-39100 7600
26 4100-125-

4850-150-

5300/4500

-150-5700
S-24 14300-400-

18300
PB-4 37400-67000 8700
27 4800-150-

5700
S-25 15100-400-

18300
PB-4 37400-67000 8700
28 5100-150-

5700/5100

-150- 6150/5100

-150-5700-

200-6300
S-26 16400-450-

20000
PB-4 37400-67000 8900
29 5100-150-

6300-200-

6700
S-27 16400-450-

20900
PB-4 37400-67000 8900
30 4500-150-

5700-200-

7300
S-28 14300-450-

22400
PB-4 37400-67000 10000
31 5900-200-

6700/5900

-200-7300
S-29 18400-500-

22400
PB-4 37400-67000 10000
32 7300-100-

7600
S-30 22400-525-

24500
PB-4 37400-67000 12000
33 7300-200-

7500-250-

8000
S-31 22400-600-

26000
HAG+SCAL E 75500-80000 NIL
34 7600/- FIXED / 7600-100-

8000
S-32 24050-650-

26000
HAG+SCAL E 75500-80000 NIL
35 8000/- FIXED S-33 26000(FIXED) APEX SCALE 80000(FIXED) NIL
36 9000/- FIXED S-34 30000(FIXED) CAB. SEC. 90000(FIXED) NIL

[next]

SIXTH CPC PAY STRUCTURE

PAY STRUCTURE FOR NEXT (VII) PAY COMMISSION DEMANDED
Name of Pay Band/ Scale Corresponding Pay Bands Corresponding Grade Pay Entry Grade

+band pay


Projected entry level pay using uniform multiplying
factor` 3’

Band Pay Grade Pay Entry Pay
PB-1 5200-20200 1800 7000 15600-

60600
5400 21000
PB-1 5200-20200 1900 7730 15600-

60600
5700 23190
PB-1 5200-20200 2000 8460 15600-

60600
6000 25380 *
PB-1 5200-20200 2400 9910 15600-

60600
7200 29730
PB-1 5200-20200 2800 11360 15600-

60600
8400 34080*
PB-2 9300-34800 4200 13500 29900-

104400
12600 40500
PB-2 9300-34800 4600 17140 29900-

104400
13800 51420
PB-2 9300-34800 4800 18150 29900-

104400
14400 54450
PB-3 15600-39100 5400 21000 29900-

104400
16200 63000 *
PB-3 15600-39100 6600 25530 46800-

117300
19800 76590
PB-3 15600-39100 7600 29500 46800-

117300
22800 88500
PB-4 37400-67000 8700 46100 112200-

20100
26100 138300
PB-4 37400-67000 8900 49100
112200-
20100
26700 147300
PB-4 37400-67000 10000 53000 112200-

20100
30000 159000




The existing basic pay should be multiplied by factor three, so that
there is no bunching of basic pay. The existing GP of Rs 2000/- and Rs
2800/- should be removed. Likewise there are GP of Rs 5400/- in both
PB-2 and PB-3 one of them is to be removed.
There are 34 scales recommended by the 6th CPC, out of which four Grade Pay
has been not in existence, as such 30 GP are right now available.
With the merger of pay scale from S9 to S12 into Grade Pay of Rs 4200/-

There are many pay scales which was merged into single GP of Rs.4200/-
which has created anomalies, the promotions have been made in same
grade pay without financial benefits.


There should be time scale rather than grade pay system, these time
scales should long enough.

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

COMMENTS

WORDPRESS: 1
  • Anonymous 6 years ago

    njca will launch protest" hahahahahhaha!!!!!!!!!!!! Where is this njca ?who is the leader?is it shivgopal mishra?Do you remember the words and deeds of this great leader?He is the man who "deferred" the strike of july 2016 when all the employees were in full mood.At that time,he assured that the strike will be revived if the Govt go back from the assurances.What happened to the "deferred" strike?Please read the posts of this great leader during the period of deferment of strike.In the last NJCA(?) meeting also,he refused to revive the deferred strike.He betrayed the entire CG employees.Please dont give publicity to his words.He is just performing dramas.