23.55% salary hike likely for central govt employees
Economic Times reported 23.55% Salary hike in the 7th Pay Commission
The much-anticipated Seventh Pay Commission bonanza for the government employees is likely soon with the Union Cabinet set to consider the panel’s recommendations on Wednesday.
The committee of secretaries tasked with reviewing the recommendations has given its report that would be considered by the government before deciding on the final award.
The Seventh Pay Commission has announced 23.55% increase in pay and allowances of serving central government employees and 24% increase in pension of retired officers.
A government official confirmed that the proposal is on the cabinet agenda for Wednesday.
The total outgo if this award is implemented from January 1, 2016, is pegged at Rs 1.02 lakh crore, providing a bid demand boost to the economy.
However, in view of fiscal constraints, the government is likely to go for a lower increase and also delay the implementation of the increase in allowances.
In the budget for FY17, the government has budgeted 32% increase in salary of its employees but only a meagre 1.9% rise in allowances.
Finance ministry officials have said that the budget has adequate provision for pay commission and the fiscal deficit target of 3.5% of GDP will not be under stress from implementation of the award.
In a report after the budget, Moody’s had said “Pay Commission recommendations of a 24% hike in public sector salary, allowances and pensions, is not fully accounted for in the budget” and will be a source of spending pressure.
The government can delay the implementation of increase in allowances to a later date but the salary increases will have to be given from January 1, 2016, which means employees will get arrears for these month, a potential boost to economy.
Car and property sales tend to rise after pay commission awards.
Cabinet may decide on 7th Pay Commission on June 29
The much awaited seventh pay commission is going to enter the last phase of implementation soon.
The Union Cabinet is expected to take up the recommendations of the 7th Pay Commission on June 29.
As per reports, Prime Minister has directed Finance Ministry to implement the Pay Commission for government employees, and place the Empowered Group of Secretaries report on the central government employees’ salary and allowances hike in the next Cabinet meeting on Wednesday, June 29.
It is expected that Empowered Group of Secretaries panel has raised the fitment factor to around 2.7, up from 2.57 as recommended by the 7th Pay Commission. The entry level salary is expected to rise to Rs 23,000, up from Rs 18,000 as recommended by the AK Mathur panel. Implementation of the Pay Commission report is going to cost the government Rs 1.02 lakh crore.
The Commission will revise the pay of nearly 47 lakh central government employees and 52 lakh pensioners, which will be effective from January 1, 2016.
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.
NFIR letter to PM – Exemption of Railways from National Pension system
NFIR
National Federation of Indian Railwaymen
No. IV/NPS/PFRDA BILL/Part I
Dated: 26/06/2016
Shri Narendra Modiji, Hon’ble Prime Minister of India’ South Block, Raisina Hills, New Delhi-110011
Sub: Exemption of Railways from National Pension system (NPS) as recommended by the Railway Ministers – kind intervention and approval requested.
The National Federation of Indian Railwaymen (NFIR) brings to your kind notice to the standing demand raised by the Federations seeking exemption of National Pension System .(NPS) and restoration of Defined Benefit Pension Scheme [Liberalized Pension Scheme i.e. Railway Services (Pension) Rules 1993].
In this connection, the NFIR brings to your kind notice that the nature of duties performed by the Railway employees are akin to those in the armed forces’ The NFIR also invites your kind attention that since British Rule, the Railways was conceived and operated as un auxiliary wing of the Army. It is an admitted fact that by virtue of its complex nature, Railways required a high level of discipline and efficiency to be able to perform its role as the prime transport mode. Railways is an operational organization required to run the services round ihe clock throughout the year. The Railway employees are expected to work in inhospitable conditions, braving extreme weather conditions under open sky, unfriendly law and order scenario and inherent risks associated with the Railways operations itself.
It needs to be appreciated that as in the armed forces, large number of Rail Workforce stays away from their families for long period while performing duties in remote and jungle areas where minimum required facilities are lacking. The nature of duties of Railway employees is critical and complex & hazards involved are also very high. Though efforts are made for enhancing safety measures, a large number of Railway employees lose their lives or meet with serious injuries in the course of performance of their duties each year. This was also admitted by Dr. Anil Kakodkar, Chairman, High Level Safety Review Committee in his report presented to the Railway Ministry.
Conceding the plea of NFIR, the former Railway Minister Mallikarjun Kharge and also the present Railway Minister Suresh Prabhu have sent proposal to the Finance Minister in March, 2014 and November 2015 respectively urging upon the Government to exempt Railway employees from the purview of National Pension System OPS). Inspite of proposals of the Railway Ministers, the Government has not yet accorded approval for exempting Railways from National Pension System (NPS). There is alround dissatisfaction and resentment among the Railway employees against.New Pension System.
The Railway employees are also a dissatisfied lot as the 7’r’ CPC has not done justice in respect of their pay structure etc. Added to this, non-abolition of National Pension System [NPS) has generated anger among all sections of Railway employees which compelled us to serve Strike Notice on 09’n June 2016.
NFIR, therefore, requests your kind intervention in the matter to see that the proposals of the Railway Minister seeking exemption of Railways from National Pension System (NPS), is approved-.by the Government without further loss of time.
With regards.
Yours sincerely,
Sd/-
(Dr.Raghavaiah)
General Secretary
MASSIVE PARLIAMENT MARCH & RALLY OF ABOUT 20000 CENTRAL GOVERNMENT EMPLOYEES
INDEFINITE STRIKE FROM 11TH JULY 2016
33 LAKHS CENTRAL GOVERNMENT EMPLOYEES WILL PARTICIPATE
A massive parliament march and rally of about 20000 Central Government Employees was held at Jantar Mantar, New Delhi on 24th June 2016. The rally was organized by National Joint Council of Action (NJCA) of Central Government Employees comprising Railways, Defence, Confederation and Postal organizations demanding modification in the recommendations of 7th Central Pay Commissions including minimum wage and fitment formula. Other demands are scrapping of New Contributory Pension Scheme, No FDI in Railways and Defence, Grant of Civil Servant status to Gramin Dak Sevaks, filling up of vacancies, enhancement of bonus ceiling, No outsourcing, downsizing, contractorisation and corporatisation etc.
The NJCA had already given strike notice to Government on 9th June 2016. The Modi Government is not ready for a negotiated settlement with the staff side. The rally called upon the entirely of Central Government employees to intensify the campaign and preparations and make the strike a total success.
The rally was presided by Shri. N. Raghavaiah (General Secretary, NFIR & Chairman NJCA), Coms. Shiv Gopal Mishra (General Secretary AIRF & Convenor NJCA), Sreekumar (Secretary General AIDEF) M. Krishnan (Secretary General, Confederation) R. N. Parashar (Secretary General, NFPE) Guman Singh (President, NFIR), Rakal Das Gupta (President, AIRF) K. K. N. Kutty (President, Confederation) B. C. Sharma (NFIR) S. K. Tyagi (AIRF), Mrs. Champa and Mrs. Gita Pandey addressed the rally
About 33 lakhs Central Government Employees will participate in the strike. 40 lakhs Central Government Pensioners have declared their solidarity with the strike. Central Trade Unions had also extended their full support. State Government Employees Federations have cautioned the Central Government that they will also be compelled to join the strike if Government refuse to settle the demands relating to 7th CPC recommendations as majority of the state Governments are implementing the Central pay parity to their employees also.
7th Pay Commission – Demand of minimum wage of Rs 26000/- & fitment formula of 3.71
Confederation of Central Government Employees and Workers Karnataka State
Comrades,
he 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, SHIMLA http://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.
NJCA National Joint Council Of Action 4, State Entry Road, New Delhi – 110055
No.NJCA/2016
Dated: June 20, 2016
To,
All Constituents of the NJCA
Dear Comrades,
To review the situation and consider the developments and take appropriate decision, the National JCA will meet on 25th June, 2016 at 11:30 hrs. in JCM Office Ferozshah Road, New Delhi.
You are requested to attend above cited meeting of the NJCA.
Extension of the tenure of Judicial Committee on OROP
No. 12(01)/2014/D(Pen/Pol)/Part II Ministry of Defence (Department of Ex-Servicemen Welfare)
New Delhi, dated 15th June 2016
NOTIFICATION
The Govt of India have decided that the Para 3 of this Ministry’s Notification No. 12(01)12014/D(Pen/Pol/Part-H dated 14.12 2015 shall be modified as under
“The Committee shall make its recommendations within one year of the date of its constitution. It may, if necessary, make interim reports on any of the matters mentioned in Para 2 above.”
(K..Damayanthi)
Joint Secretary to the Govt. of India
Non-settlement of genuine demands of the Central Government Employees
National Council (Staff Side)
Joint Consultative Machinery
for antral government Employees
13-C, Ferozshah Road, New Delhi — 110001
E Mail : [email protected]
No.NC/JCM/2016
Dated: June 17, 2016
Respected Sir/Madam,
Sub: Non-settlement of genuine demands of the Central Government Employees
More than 32 lakh Central Government Employees working in various ministries of the Government of India, including Railways, Postal, Defence (Ordnance Factory and other Civilian Employees), Central Secretariat, Income Tax, Audit & Accounts and other employees of the government departments are aggrieved since long on non-settlement of their various demands.
The report of the VII CPC has further made them aggrieved because of the retrograde recommendations, including non-scientific calculation of Minimum Wage and Fitment Formula. The issue of National Pension Scheme(NPS) had been very heart burning for more than 1.1 million young Central Government Employees who have been deprived from the Defined Pension/Family Pension and we are agitating this issue with the Central Government since its inception.
Under the above compelled circumstances, the National Joint Council of Action has taken a decision to go on “Indefinite Strike” from 06:00 a.m. on 11th July, 2016.
The Central Government Employees of this country have always stood for the development and good governance of the country, but do feel de-motivated because of the inaction on their pending demands.
We do have written to Hon’ble Prime Minister of India vide letter No.NC/JCM/2016/CS/PM dated 14.06.2016 (copy enclosed for ready reference) with the request that the government should immediately come forward for negotiated settlement with the NC/JCM on the demands of the Central Government Employees to avoid unnecessary confrontation.
We earnestly hope that, you will kindly lay your hands and support us in our struggle as well as put pressure on the Government of India for resolution of our genuine demands at an earliest.
Yours faithfully,
(Shiva Gopal Mishra)
Secretary, Staff Side
National Council(JCM)
Mob: 9717647594
Hon’ble Prime Minister of India,
152, South Block,
Raisina Hill,
New Delhi-110011
Respected Sir,
Sub: Non-settlement of our demands – Decision to go on “Indefinite Strike” commencing from 11.07.2016 – Request for your intervention and support
I write this on behalf of the apex level body of all the Central Government Employees Organizations who are participating in the Negotiating Forum; called the Joint Consultative Machinery. The JCM as a Negotiating Forum was conceived and implemented in 1966 after the prolonged discussions with the Staff Associations and the Federations in the Central Services in the wake of first industrial action in 1960. The idea of setting up the JCM was in realization of the absence of a platform to discuss, deliberate and settle the demands/issues/grievances/problems of the Civil Servants. Up to 1995-96 the JCM, which has a three level negotiating platform was functioning well, meetings were regular. However, after the promulgation of the new recognition Rules in 1993, the meetings at the Ministry level became few and far between and at the national level, the deterioration stepped in a little latter. The National Council, which was to meet thrice in a year did not meet even once in a year. The last meeting of the National Council was held on 15.05.2010 The organizations participating in the JCM were demanding the meeting to be held, but the pleas were ignored by the successive Cabinet Secretaries. The Charter of Demands (copy enclosed), in pursuance of which the strike is decided to be organized, has arisen due to long neglect of the grievances of the employees/workers.
When the 7th CPC was set up in February, 2014, no announcement for Interim Relief or DA Merger was made by the then government, which had all along been the practice whenever the government had set-up the Pay Commissions earlier. We fully co-operated with the Commission, submitted a memorandum detailing the issues and explained the reasoning behind each demand. The 7th CPC submitted report on 19.11.2015 to the government. In our communication dated 10.12.2015 (copy enclosed), we sought improvement/amendment over the recommendations of the 7th CPC and explained our demands both in writing and orally before the Empowering Committee. Most of the meetings were monologues except perhaps the last one. What we have understood, is that, the Empowering Committee might not come forward to make any major changes. A fruitful meeting is supposed to be a dialogue where both parties at the negotiating table exchange their understanding, views and difficulties and reach a mutually acceptable position. In 1998, when the then Cabinet Secretary decided not to have such a dialogue with the Staff Side and unalterably issued the Government Notification on the 5th CPC recommendations, the then government did set up a committee of Group of Ministers. The GoM held discussions on all issues and averted the strike action. The 1998 situation establishes, without an iota of doubt, that, the Staff Side has always taken reasonable stand on all the issues and paved way for settlement.
The one and only recommendation made by the 7th CPC was to provide some relief to the past old pensioners. The Department of Pension & Pensioners’ Welfare has unfortunately recommended to the Cabinet Secretary that, even that recommendation must be rejected on the specious plea that the requisite relevant records might not be available.
These developments have caused anguish, anxiety and anger amongst the workers. It is now more than six months that the Commission submitted its report. If the government comes forward to hold a meaningful discussion with the leaders of the NJCA, a mutually acceptable settlement can be brought about and the impending strike, slated to commence from 11.07.2016, can ultimately be avoided.
We seek your co-operation, supports and intervention in the matter
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