7th CPC Report needs changes

Confederation of Central Government Employees and Workers Karnataka State The news and Views of Central Government Employees of Karnataka State  Comrades, The 7th CPC has submitted its report to the Government of India and the expectations of the employees of the Central Government are not in lines of the recommendations of the 7th CPC at many places the existing allowances have been decreased or abolished totally. The rate of HRA is also reduced to 24% , 16 and 9%. The main demands of the employees are not considered which include five promotions scheme. Only positive in these reports are parity in pension, retention of DA formula and removal of grade pay system. The same amount of transport allowance and tour TA/DA is existing; here also there is no change. The major disparity is in the case of minimum wage and fitment formula here the 7th CPC has erred in its calculations and adoption of Dr. Aykroyd formula and 15th ILO norms instead of fixing minimum wage at Rs 23,000/ it has fixed at Rs 18,000/-, There by the fitment formula instead of 3.25 is at 2.57 thereby the wage hike should have been by 30% , now its is only 14.27 %. The following table shows the real increase given by each CPC/Government over the previously set minimum pay: ( in percent) II CPC14.2 III CPC20.6 IV CPC27.6 V CPC31.0 VI CPC54.0 VII CPC14.27 This is the lowest percentage of increase compared to all pay commission report. The prices from Consumer Price Index for Industrial Workers maintained by Labour Bureau, Shimla is taken instead of Directorate of Economics & Statistics, Ministry of Agriculture here the prices are much higher than the Labour Bureau, Shimla. The 6th CPC has taken average of retail prices and the Government prices, This methodology has also not been adopted. Secondly the 6th CPC had aslo adopted Dr. Aykroyd formula and 15th ILO norms the 7th CPC has modified that formula this has also resulted in wrong fixation of the minimum wage. The 6th CPC minimum wage fixation is given below. Table 2.2.1 Fixation of Minimum wage as on 1.1.2006 as per 15 ILC norms Items Per day PCU Per month 3CU Price per kg. taken by Staff Side Total cost as per Staff Side Price per kg. as per prevailing rates Total cost as per prevailing rates (In grams) (In kg) (In Rs) (In Rs) (In Rs) (In Rs) Rice/wheat 475 42.75 22 941 18 769.5 Dal (Toor/ Urad / moong) 80 7.2 65 468 40 288 Raw Veg. 100 9 28 252 10 90 Greenleaf Veg. 125 11.25 24 370 10 112.5 Other Veg. 75 6.75 26 176 10 67.5 Fruits 120 10.8 50 540 30 324 Milk 200 Ml 18 Lt. 24 432 24 432 Sugar and Jaggery 56 5 24 120 24 120 Edible Oil 40 3.6 90 324 50 180 Fish 2.5 180 450 120 300 Meat 5 180 900 120 600 Egg 90 (no) 2.5 225 2 180 Detergents etc 300 P/m 300 200 200 Clothing 5.5 Mt. 80/Mt. 440 80/Mt. 440 Total 5838 4103.5 Misc. @ 20%* 1167.6 827 Total 7005.6 4930.5 Addl. Exp @ 25%** 1751.4 400# 400# Total 8757 5330.5 Housing @ 10%*** 973 ^148 Grand Total 9730 5478.5 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 * 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 The 7th CPC fixation is also given below: Calculation of Minimum Pay as on 01.01.2016 by the Commission Price/ Unit (₹) Per day PCU Per month 3 PCU Expenses (₹) Unit Unit 1 Rice/Wheat 475 gm 42.75 kg 25.93 1108.3 2 Dal (Toor/Urad/Moong) 80 gm 7.2 kg 97.84 704.44 3 Raw Vegetables 100 gm 9 kg 58.48 526.28 4 Green Vegetables 125 gm 11.25 kg 38.12 428.85 5 Other Vegetables 75 gm 6.75 kg 32.8 221.42 6 Fruits 120 gm 10.8 kg 64.16 692.93 7 Milk 200 ml 18 litre 37.74 679.26 8 Sugar/Jaggery 56 gm 5.04 kg 37.4 188.48 9 Edible Oil 40 gm 3.6 kg 114.02 410.46 10 Fish 2.5 kg 268.38 670.95 11 Meat 5 kg 400.9 2004.51 12 Egg 90 no. 4.27 383.98 13 Detergents etc ₹/month 291.31 291.31 14 Clothing 5.5 164.88 906.83 15 Total (1-14) 9217.99 16 Fuel, Electricity, Water Charges 2304.5 17 Total-(15) divided by 0.8 11522.49 18 Marriage, Recreation, Festivals, etc. 2033.38 19 Total-(17) divided by 0.85 13555.87 20 Provide for Skill by adding 25% to (19) 3388.97 21 Sum (19+20) 16944.84 22 Housing @ 524.07 23 Total-Divide no.21 by 0.97 17468.91 24 Step up of 3% on No.23 as DA is projected at 125% on 01.01.2016 524.07 25 Final Minimum Pay as on 01.01.2016 (23+24) 17992.98 26 Rounding off 18000 Minimum Wage as per Prices of Directorate of Economics & Statistics, Ministry of Agriculture Prices as on 1/11/2015 Item Per Month Average Amount 3 units Rate in Kgs/ mt Rice Super fine/Wheat atta 42.75 44.25 1891.6875 Dal 7.2 151.87 1093.464 Raw Vegetables 9 30.47 274.23 Green Vegetables* 11.25 40 450 Other Vegetables* 6.75 40 270 Fruits 10.8 68.87 743.796 Milk Dairy 18 38.16 686.88 Sugar 5 31.75 158.75 Edible Oil 3.6 136.71 492.156 Fish 2.5 433.81 1084.525 Meat Mutton 5 447.18 2235.9 Egg 90 4.89 440.1 Detergents* 1 300 300 Clothes 5.5 240 1320 Total 11341.4885 Housing @ 7.5% 850 Miscellaneous @ 20% 2268 Total 14460 Additional @ 25% 3615 18075 Grand Total - Say Rs 18,000/- Minimum pay for unskilled worker in the erstwhile Group D 18000 Additional @ 25% for Group "C" 4518 Minimum pay for skilled worker in the erstwhile Group "C" as per Govt Prices 22593 Source : http://rpms.dacnet.nic.in/Bulletin.aspx http://rpms.dacnet.nic.in/ Add 10% for retail price diffrence 2300 Actual Minimum wage 25,000 Hence it is quite clear that the minimum wage calculation and fitment formula needs relook. Also the allowances rates should be increased. Comradely yours (P.S.Prasad) General Secretary