Annexure II
01. DETERMINATION OF MINIMUM PAY –
EXPLANATORY NOTE
To fix the minimum pay as low as
possible; the Pay Commission revised the Akkroyed Formula and thus the 15th
ILC norms itself as well as the directive of the Supreme Court. Similarly DA
from 01.01.2016 assumed to be 6%, but added just 3% to estimate the cost.
Following 3 para gives the details about the deviation of the 7 CPC to
calculate the Minimum Pay as on 01.01.2016 as low as possible may be the after
effect of the intervention of the Finance Minister and the Finance Secretary.
1.
The
Pay Commission by their own unilateral way reduced the expenditure towards
recreation, festival, etc to 15% from 25% which was an award of Supreme Court. The
reason given for the reduction is that Child Education allowance
2.
Similarly
the expenditure towards Housing has been reduced from 7.5% to 3% which was
component of the Akkroyed Formula adopted in the 15th ILC
Conference. While considering the exorbitant increase in the rate electricity
charges and water charges has been increased after the new electricity policy
adopted by the government of India as well as the state governments the
expenditure on housing should be enhanced.
3.
The
Pay Commission by assuming an increase of DA @ 6% from01.01.2016 and the cost
of living was estimated as on 1st July when the DA was 119%, the day
which the commission recommended to implement the new pay, 6% DA considered,
but we are not convinced why the cost was increased by just 3% when assumed DA
increase is 6%. Hence I feel correction is inevitable here to be replacing 6%
by 3%.
4.
The
Pay Commission the “DA” assumed for 01.01.2016 at the rate of 3% has been added
after adding the expenditure on fuel, electricity, etc., for festival,
recreation, etc., provision for skills, for housing etc. Since this DA
component is considering in lieu of the inflation and rise in Consumer Price
Index the increased DA @ 6% should be calculated on the total cost after adding
the items no 1 to 14. Thus 6% DA should be calculated on Total cost of Rs
9217.99 mentioned in the column of the Pay Commission Report.
Thus the above mentioned 4
deviations to be corrected to calculate the Minimum Pay and the following shall
be the Annexure to Chapter 4.2 to derive the minimum pay as on 01.01.2016 after
correction.
|
|
Items @
|
Per Day
PCU
(in gms)
|
Per Month
3 CU
(in Kg)
|
Price per KG as
per
rates on 01.07.2013
(In Rupees)
|
Total cost per
month (as on 01.07.2013)
(In Rupees)
|
|
1
|
Rice
|
475
|
42.75
|
25.93
|
1108.30
|
|
2
|
Dal Toor/Urad/ Moong
|
80
|
7.2
|
97.84
|
704.44
|
|
3
|
Raw Vegetables
|
100
|
9.00
|
58.48
|
526.28
|
|
4
|
Green Leaf Veg
|
125
|
11.25
|
38.12
|
428.85
|
|
5
|
Other Veg Onion,
Potato, Tomato
|
75
|
6.75
|
32.80
|
221.42
|
|
6
|
Fruits
|
120
|
10.8
|
64.16
|
692.93
|
|
7
|
Milk (18 Ltrs)
|
200 ml
|
18 ltrs
|
37.74
|
679.26
|
|
8
|
Sugar/Jaggery
|
56
|
5.00
|
37.40
|
188.48
|
|
9
|
Edible Oil
|
40 ml
|
3.6 ltr
|
114.02
|
410.46
|
|
10
|
Fish
|
|
2.5Kg
|
268.38
|
670.95
|
|
11
|
Meat
|
|
5.00Kg
|
400.90
|
2004.51
|
|
12
|
Egg
|
|
90
|
4.27
|
383.98
|
|
13
|
Detergents etc,
Bath & washing soap, washing
powder etc.,
|
|
|
291.31
|
291.31
|
|
14
|
Clothing#
|
5.5mtrs
per
month
|
5.5
|
164.88
|
906.83
|
|
15
|
Total
|
9217.99
|
|||
|
16
|
Assume DA @ 6%as
on 01.01.2016
|
553.08
|
|||
|
17
|
Step up of 6% on (23)as DA is projected at 125% on 01.01.2016
|
9771.07
|
|||
|
18
|
Misc.* Fuel,
Electricity, Water Charges @ 20%
|
2442.77
|
|||
|
19
|
Total
(15) divided by 0.8
|
12213.84
|
|||
|
20
|
Marriage,
Recreation, Festivals, etc
|
4071.28
|
|||
|
21
|
Total (17) divided
by 0.75
|
16285.12
|
|||
|
22
|
Provide for skill
by adding 25% to (19)
|
4071.25
|
|||
|
23
|
Sum (19+20)
|
20356.40
|
|||
|
24
|
Housing @ 7.5%
|
1650.51
|
|||
|
25
|
Final Minimum Pay
as on 01.01.2016 (21) divided by .925
|
22006.92
|
|||
|
26
|
Rounding off
|
22000.00
|
|||
The Pay commission claimed that the
prices of all items for finding Minimum Pay based in the Akkroyed formula have
been sourced from Labour Bureau, Shimla. From the Annexure to Chapter 4.2 it
can be see that the rate quoted was far less than that of the real rate.
The rate quoted by Labour Bureau is
unbelievable and misguiding. For example, the rate oh whole Wheat at Ernakulam,
Mundakkayam, Quilon, Talcher, Ghaziabad, Asansole, Durgapur, Haldia, Howrah,
Jalpaiguri, Kolkatta, etcshown as Rs 5 to 10 where as other places of the
country the rate was shown as Rs 15 to 35. When the rate of Wheat Atta verified the rate
at Tinsukia, Silchar, Jorhat, Tezpur, Himachal; Pradesh, Darjiling, Jalapiguri,
Siliguri recorded as Rs 2 to 10. It is only the Labour Bureau or the Pay
Commission can explain how the rate of Whole Wheat shall be higher than Wheat Atta
at same location as there are processing charges of grinding, packing etc
involved. This also recorded in places like Himachal Pradesh, Giridih, Ranchi, Bengaluru,
Bhopal, Indore, Jabalpur, Nagpur, Hyderabad, Darjiling, Jalpaiguri Siliguri,
etc. It has been gone such an extend make the system as mockery at Darjiling
Whole wheat is costing Rs 13.55 and Wheat Atta cost Rs 2.11 and in Jalapiguri
it is 10.59 and Rs 3.01 and at Siliguri Whole wheat costs Rs 13.05 and for Atta
just Rs5.08.
Similarly in the chart available in the
website of Labour Bureau the rate of Udid Dal, Coconut oil, Sunflower oil,
vegetable, etc was not available. It was not mentioned in the Report that from where
these rate has been taken. Similarly in
the Akkroyed formula the rate of Sugar and Jaggery to be taken together, where
as the rate of Sugar only considered and not the rate of Jaggery has been
taken.
Minimum Pay based on
various other available facts & Figures:
The Andhra Pradesh Government has
been constituted a Pay Revision Commission and its report came in the year
2014. The minimum basic pay has been calculated based on the Akhroyyed formula.
Considering the cost of items recorded the Andhra Commission total cost will be
Rs 9830.58 in the column 15.
By considering the retail rates of
items mentioned in the Dr. Akhroyed formula available in the Government own
sight of Agricultural informative Division, National Informatics Centre,
Ministry of Communication & Information Technology, the cost shall be more
than Rs 11,000 and after adding the expenses for housing, recreation, skill,
electricity , etc added, the minimum pay will be about Rs24,000/-.
Similarly the Kerala Government constituted
Pay Revision Commission for State Government Employees of Kerala Government. The
Commission recommended Minimum Pay as RS 17500/- from 01.07.2014. If
considering that as minimum pay as on 01.07.2014 and adding 3 DA @ 6% each the
Minimum Pay shall be more than Rs. 20000/-
Considering the above mentioned three
factors illustrated below what would be the Minimum Pay for Central Government
Employees from 01.01.2016:
A. Minimum
Pay based on the Pay Commission, Andhra Pradesh:
More over during the period of 2014
the Pay and Allowances of Andhra State Government was revised based on the
report submitted by Shri. P.K. Agarwal, Pay Commissioner. In the said report
also the Pay Commission for Andhra adopted the 15th ILC norms and
Akkroyed formula for determine the minimum pay.
In the para 05.15, Page 26, Vol. I,
Pay Revision Commission, Andhra Pradesh 2014 it was illustrated that the total
expenditure on items prescribed by the Akkroyed formula is Rs 9830.58. The rate
was taken of the year 2013 July. The chart is reproduced below:
Need based Minimum Wage
|
Items @
|
Per Day
PCU
(in gms)
|
Per Month
3 CU (in Kg)
|
Price per KG as
per
rates on 01.07.2013
(In Rupees)
|
Total cost per
month (as on 01.07.2013)
(In Rupees)
|
|
Rice
|
475
|
42.75
|
34.99
|
1495.82
|
|
Dal Toor/Urad/ Moong
|
80
|
7.2
|
73.99
|
532.73
|
|
Raw Vegetables
|
100
|
9.00
|
34.39
|
309.51
|
|
Green Leaf Veg
|
125
|
11.25
|
32.20
|
362.25
|
|
Other Veg Onion,
Potato, Tomato
|
75
|
6.75
|
24.75
|
167.06
|
|
Fruits
|
120
|
10.8
|
71.38
|
770.90
|
|
Milk (18 Ltrs)
|
200 ml
|
18 ltrs
|
37.44
|
673.92
|
|
Sugar/Jaggery
|
56
|
5.00
|
41.66
|
208.30
|
|
Edible Oil
|
40 ml
|
3.6 ltr
|
138.67
|
499.21
|
|
Fish
|
|
2.5Kg
|
272.86
|
682.15
|
|
Meat
|
|
5.00Kg
|
395.55
|
1977.75
|
|
Egg
|
|
90
|
3.67 per piece
|
330.30
|
|
Detergents etc, Bath &
washing soap, washing
powder etc.,
|
|
|
329.25
|
329.25
|
|
Clothing#
|
5.5mtrs
per
month
|
5.5
|
271.17 Per Mt.
|
1491.43
|
|
|
|
|
Total
|
9830.58
|
The
total expenses as per Andhra commission as on 01.07.2013 is Rs9830.58/- If
replace the cost in 7th CPC Rs.9217.99 by Rs9830.58 the minimum pay
further increase.
The
column 15 to 26 in annexure to Chapter 4.2 is re written based on the total
cost as Rs 9830.58 in place of Rs 9217. 99 the Minimum Pay shall be Rs 23500/-.
Illustration given below:
|
15
|
Total
|
9830.58
|
|
16
|
Step up of 6% on (23)as DA is
projected at 125% on 01.01.2016
|
589.84
|
|
17
|
Total Cost
|
10420.41
|
|
18
|
Misc.* Fuel,
Electricity, Water Charges @ 20%
|
2605.10
|
|
19
|
Total (15) divided by 0.8
|
13025.51
|
|
20
|
Marriage,
Recreation, Festivals, etc
|
4341.84
|
|
21
|
Total (17) divided
by 0.75
|
17367.35
|
|
22
|
Provide for skill
by adding 25% to (19)
|
4341.84
|
|
23
|
Sum (19+20)
|
21709.19
|
|
24
|
Housing @ 7.5%
|
1760.20
|
|
25
|
Final Minimum Pay
as on 01.01.2016 (21) divided by .925
|
23469.39
|
|
26
|
Rounding off
|
23500.00
|
If the 29% DA given to the Central
Government employees from 1st January 2014 to 1st July
2015 added with the cost of items on 01.07.2013 calculated by Andhra Commission
the cost 9830.58 will become Rs 12681.45. Thus the Minimum Pay may further
increase.
It should be noted that in Andhra
Pradesh rice is producing highest and always buffer stocks available in Andhra
and exporting to all other states and naturally the rate of rice shall be the
lowest. Even then Andhra recorded the rate for rice in 2013 as 34.99 where as 7
CPC found the rate of rice a meagre Rs25.93.
The rate of edible oil, detergents,
clothes etc are fixed across the state as it is selling on MRP printed on each
item. Hence there is no possibility for varying state by state. Even then the
expenses on these items are higher in 2013 than of 2015
B. Minimum
Pay based on the Retail Rate published by Ministry of Communication &
Information Technology, Government of India:
The Government every month
publishing the rate of all eatable items, such, rice, wheat, dal, sugar,
fruits, vegetables, milk, edible oil, fish, meat Mutton, egg, etc. through the
Retail Price Information System. The said site is owned by Agricultural informative
Division, National Informatics Centre, Ministry of Communication &
Information Technology.
The rate for 01.011.12015 is taken from the
said source through internet Source: http://rpms.dacnet.nic.in/Bulletin.aspx.
Then worked out the minimum wage. It comes as below:
Minimum Wage as per Government Prices as on 1/11/2015
|
Sl. No
|
Items @
|
Per Day
PCU
(in gms)
|
Per Month
3 CU (in Kg)
|
Price per KG as
per
rates on 01.07.2013
(In Rupees)
|
Total cost per
month (as on 01.07.2013)
(In Rupees)
|
|
1
|
Rice and wheat
|
475
|
42.75
|
44.25
|
1891.69
|
|
2
|
Dal Toor/Urad/ Moong
|
80
|
7.2
|
151.87
|
1093.46
|
|
3
|
Raw Vegetables
|
100
|
9.00
|
30.47
|
274.23
|
|
4
|
Green Leaf Veg
|
125
|
11.25
|
40.00
|
450.00
|
|
5
|
Other Veg Onion,
Potato, Tomato
|
75
|
6.75
|
40.00
|
270.00
|
|
6
|
Fruits
|
120
|
10.8
|
68.87
|
743.80
|
|
7
|
Milk (18 Ltrs)
|
200 ml
|
18 ltrs
|
38.16
|
686.88
|
|
8
|
Sugar/Jaggery
|
56
|
5.00
|
31.75
|
158.75
|
|
9
|
Edible Oil
|
40 ml
|
3.6 ltr
|
136.71
|
492.16
|
|
10
|
Fish
|
|
2.5Kg
|
433.81
|
1084.53
|
|
11
|
Meat
|
|
5.00Kg
|
447.18
|
2235. 90
|
|
12
|
Egg
|
|
90
|
4.89 per piece
|
440.10
|
|
13
|
Detergents etc, Bath &
washing soap, washing
powder etc.,
|
|
|
320
|
320.
|
|
14
|
Clothing#
|
5.5mtrs
per
month
|
5.5
|
240 Per Mt.
|
1320.00
|
|
15
|
|
|
|
Total
|
11461.48
|
The total in the Chart
at column number 15 has been replaced and calculated to find the Minimum Pay.
Thus the Minimum pay is Rs. 27,000/-. The illustration is given below:
|
15
|
Total
|
11461.48
|
|
16
|
Step up of 6% on
(23)as DA is projected at 125% on 01.01.2016
|
687.89
|
|
17
|
Total cost
|
12149.17
|
|
18
|
Misc.* Fuel,
Electricity, Water Charges @ 20%
|
3037.29
|
|
19
|
Total (15) divided by 0.8
|
15186.46
|
|
20
|
Marriage,
Recreation, Festivals, etc 25%
|
5062.15
|
|
21
|
Total (17) divided
by 0.75
|
20248.61
|
|
22
|
Provide for skill
by adding 25% to (19)
|
5062.15
|
|
23
|
Sum (19+20)
|
25310.13
|
|
24
|
Housing @ 7.5%
|
2052.17
|
|
25
|
Final Minimum Pay
as on 01.01.2016 (21) divided by .925
|
27362.30
|
|
26
|
Rounding off
|
27000.00
|
For
the above calculation the rate has been taken as 01.11.2015. The rate for any
period as mentioned Pay Commission is available in the NIC source and can be
work out the minimum pay.
C. Minimum
Pay based on the Pay Revision Commission, Kerala:
10th Pay Revision
Commission, Kerala was appointed by Government of Kerala on 30.11.2013 under
the Chairmanship of Justice C.N. Ramachandran Nair, Retired Acting Chief
Justice of Kerala High Court. The Pay Revision Commission submitted its partial
report of Pay revision during teh month of June 2015. It recommended Rs17000/-
as Minimum Pay as on 01.07.2014 for the Employees working under Kerala
Government.
The pay shall be increase to Rs
20200/- as on 01.01.2016 by adding three DA @ 6% on 01.01.2015, 01.07. 2015 and
01.01.2016 respectively.
From the above explanations and illustrations
on various aspects, it can be seen that the 7 CPC totally deviated from the
concept of the 15th ILC, Dr. Akkroyed Formula and compromised with
false figures and facts to arrive their magic figure of Rs 18000 as minimum pay
to please their political bosses in the government.
Thus
a complete revisit in the calculation being done by 7 CPC has to done to derive
the Minimum Pay for Central Government Employees.
02. RATIONALISATION OF PAY STRUCTURE –
PARA 5.1.19
Though it is irrational to maintain different Index at
different rates Level 6 onwards higher index rate is granted. (Para5.1.19)
Justification for ‘index of rationalisation’ states that,
“the role, responsibility and accountability increases at each step in the
hierarchy”.
The concept is not practically achieved. The Pay of the senior employees in the same
Grade/Level will be revised with the Fitment formula of 2.57; whereas the new
recruits/promotions from much lower grade will get the benefit of fitment of
2.57 and above. If the Pay Commission indent to justify the index of
rationalization the multiple factor at the entry pay of each level should be
reflected in each stage. Especially most of the pays in PB2 and PB 3 are
promotional grades for the employees those who recruited in PB1 will reach at
higher stage in those levels when they got promotion and they will not get the
benefit the “index of rationalization”. Hence the senior employees are
neglected visa vis the new entrants.
