GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO 242
ANSWERED ON 06.12.2013
SEVENTH PAY COMMISSION
242 . Shri JEETENDRA SINGH BUNDELA
Will the Minister of FINANCE be pleased to state:-
(a) Whether Seventh Pay Commission for Central Government employees has been announced by the Government;
(b) if so, the details thereof;
CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor, North Avenue PO Building, New Delhi – 110001
Website: www.confederationhq.blogspot.com
CIRCULAR NO. 10 DATED – 29.11.2013
GET READY FOR STRIKE
CONFEDERATION NATIONAL SECRETARIAT DECIDES TO ORGANIZE PHASED AGITATIONAL PROGRAMMES CULMINATING IN STRIKE
NO COMPROMISE ON THE TERMS OF REFERENCE OF 7th CPC SUBMITTED BY THE STAFF SIDE
1. The National Secretariat of the Confederation of Central Government Employees and Workers met at New Delhi on 28.11.2013 and reviewed the situation arising out of the Government’s announcement of Seventh Central Pay Commission and the subsequent developments thereon.
2. Eventhough Government has announced constitution of 7th Central Pay Commission, the appointment is yet to take place. In the meanwhile one round of discussion was held with Secretary, DOP&T on terms of reference. Subsequently, the staff side, JCM National Council has submitted a unanimous proposal on the items to be included in the terms of reference of the 7th CPC, which includes (i) date of effect as 01.01.2014 (2) merger of DA with pay (3) grant of interim relief (4) inclusion of GDS under the ambit of 7th CPC (5) statutory pension for those entered into service on or after 01.01.2004 (6) settlement of anomalies of 6th CPC (7) cashless/hassle-free medicare facilities etc.
BHARATIYA PRATIRAKSHA MAZDOOR SANGH
(AN ALL INDIA FEDERATION OF DEFENCE WORKERS)
(AN INDUSTRIAL UNIT OF B.M.S.)
(RECOGNISED BY MINISTRY OF DEFENCE, GOVT. OF INDIA)
REF: BPMS / DoP&T / 7th CPC / 250 (6/1/M)
Dated: 31.10.2013
To,
The Secretary (JCA),
Govt of India, Min of Pers, PG & Pensions,
Department of Personnel & Training,
North Block, New Delhi – 110001
Subject: Terms of Reference of the 7th Pay Commission
Reference: Your letter No. 16/15/2012-JCA, dated 30.09.2013
Respected Sir,
With due regards, your attention is invited to the letter cited under reference whereby suggestions of the Staff Side on the subject matter have asked for. Hence, according to this federation the terms of reference of the 7th CPC should be as under:-
1. To examine with a view to having a proper pension structure including provisional pension for pensioners and family pensioners both past and future so that all pensioners irrespective of pre retirement status get equal percentage rise in pension upholding the principle of parity in pension between past and future pensioners as recommended by V CPC and to recommended appropriate revised pension structure.
2. To examine the existing pension structure including death-cum-retirement, gratuity commutation of pension and other terminal or recurring benefits, upholding the principle of Parity in Pension between past and future pensioners as recommended by V CPC and make recommendations there to be effective from 01.01.2011.
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI-11o o55
Affiliated to:
lndian National Trade Union Congress (INTUC)
lnternational Transport Workers' Federation (ITF)
20.10.2013
No.IV/NFIR/7th CPC/2013-Pt.1.
Shri Guman Singh,
President, NFIR
At Jaipur.
Shri R.P. Bhatnagar,
Working President,
At Dadar, Mumbai.
Dear Brother,
Sub: 7th Central Pay Commission - Terms of Reference -Staff Side (JCM) views - reg.
A meeting has since been convened under the Chairmanship of Secretary, Dop&T at 1500 hours on 24th October, 2013 in Committee Room No, 190, North Block, New Delhi on the possible terms of reference of the 7th Central Pay Commission whereby Staff Side views may be discussed.
National Mazdoor Conference has asked Prime Minister Manmohan Singh to immediately appoint the chairman and other members of the 7th Pay Commission and hold discussions with representatives of the Centre and state government employees in this regard.
“National Mazdoor Conference has urged to Prime Minister Manmohan Singh to immediately appoint chairman and other members of the 7th Commission and hold discussions with representatives of both Centre and state government employees in this regard as the Central and state government employees and pensioners will be entitled to 7th Pay Commission with effect from January one, 2016,” NCM President Subash Shastri said.
Till this moment, the oral announcement only made by the Finance Minister to constitute 7th CPC for Central Government employees. There is no further action to constitute the committee for 7th CPC and we cannot say anything about the members of the committee and when it will be constituted.
The is no authentic information about the date to constitute the committee for preparing recommendations for 7th CPC. However, the committee will take maximum of 24 months to submit their recommendation report to Indian Government. The implementation of the 7th CPC is likely to be implemented from 1st January, 2016 to all Central government employees.
Not only the Central government employees, all government servants including their family members are keenly watching the news about 7th Central Pay Commission, because the same procedure / recommendations of Central Pay Commission are followed by state government to their employees. Revision of pay has been implemented by the government once in ten years through the pay commissions and an employee can get a maximum of three pay hike in entire service. So, it is very excited to know the details of modifications in all the respect of pay.
INDIAN RAILWAYS TECHNICAL SUPERVISORS ASSOCIATION
(Estd. 1965, Regd. No.1329, Website http://www.irtsa.net )
M. Shanmugam,
Central President, IRTSA
# 4, Sixth Street, TVS Nagar, Padi,
Chennai – 600050
Email- cpirtsa@yahoo.com
Mob: 09443140817
Harchandan Singh,
General Secretary, IRTSA,
C.Hq. 32, Phase 6, Mohali,
Chandigarh-160055.
Email-gsirtsa@yahoo.com
(Ph:0172-2228306, 9316131598)
No:IRTSA/Memo – PM/7CPC/2013-6 Date: 9-10-2013
1. Hon. Prime Minister of India, South Block, New Delhi
2. Hon. Minister of Finance, Govt. of India, North Block, New Delhi
Respected Sir,
Subject: Suggestions on Terms of Reference & Composition of 7th Pay Commission.
We heartily welcome the decision of the Government to set-up the Seventh Central Pay Commission. We shall highly appreciate if the following suggestions are considered by the Government in this regard – in order to do greater justice to the employees by determining the Pay Scales/ Grade Pay etc. through JOB EVALUATION – as in all advanced countries:
The outcome of announcement on setting up of 7th Pay commission
The 7th pay commission announcement was really unexpected surprise at this juncture for everyone. At the time of facing financial crisis, no one has expected that the central government would announce its decision on constituting 7th pay commission soon. Really all the central government employees are excited about this when the central government made this announcement. Even all the central government employees’ federations were not aware of this move of the central government in advance.
Though all the trade unions and its federations started adopting resolution on demanding the central government to constitute 7th pay commission in its annual conferences, the federations have no faith on central government would take up this demand seriously. As speculated by news media, there might be some political reasons involved in this decision. But the central government has to fulfill the commitment made by the Finance Minister on 25/9/2013 on the issue of setting up of 7th pay commission. Through this announcement the central government made all the 50 lakh central government employees and 30 lakh pensioners happy. But this is a win-win situation for both, the central government and its employees. Apart from the financial constraint, by announcing 7th pay commission the central government almost settled three core issues of trade unions indirectly. Settled in the term, it has been made that this demand would not be raised again.
The new pay commission needs to embed performance meaningfully in babus' pay structure
The government last week cleared the setting up of the 7th Central Pay Commission for its employees. The move may be prudent politically but it will add to the problems of the next government which will also be burdened with the impact of the Food Bill on financial and the Land Bill on investment.
The CPC recommendations, which will be implemented from January 2016 have to be handled properly—implementation of the 6th CPC recommendations threw fiscal deficit out of gear for two years, FY09 and FY 10. Though there will be no arrear burden this time as 7th CPC recommendations can be implemented from the due date itself—CPC is constituted every 10 years and 6th CPC recommendations were implemented from 2008 instead of 2006—the new pay structure itself will add to the government woes, especially at a time when the government is expected to be considerably cash-strapped for an extended period of time. The 12th five-year-plan average growth rate is unlikely to surpass even 6%.
A close look at the composition of the central government staff and pay structure clearly indicates there is not much that the government can do (or be willing to do) as far as curtailing the expenditure on this account is concerned. But what the CPC can do certainly is target hikes better to reward performers. A transparent and effective performance-linked pay system devised carefully, rather than the current token one, can be a catalyst for improving the government functioning.
CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES & WORKERS
(Central Head Quarters)
1st Floor, North Avenue Post office Building, New Delhi - 110001
Dated – 25.09.2013
PRESS STATEMENT
Central Government has announced the constitution of 7th Central Pay Commission. Confederation of Central Government Employees & Workers has been raising this demand before the Government right from 2011 onwards and has conducted series of agitational programmes including Parliament March and one day nationwide strike on 12th December 2012.
Prime Minister Approves the Constitution of Seventh Central Pay Commission; Recommendations are Likely to be implemented with effect from 1st January, 2016
The Finance Minister Shri P.Chidambaram in a statement said here today that the Prime Minister has approved the constitution of the Seventh Central Pay Commission.
The fourth, fifth and sixth Central Pay Commissions’ recommendations were implemented as follows:
The delegates’ conference of INTUC adopted a resolution on appointment of the 7th pay commission in its 30th Plenary Session held in Raipur, Chhattisgarh. Since it is one of the major Central Trade Unions in India, the resolutions which are adopted in its conference will be given national importance and it would be taken up seriously by the Central Government. As the INTUC is the labour wing of Congress Party, it is expected that the demands made by the INTUC will be considered favorably by the Government. The resolution on appointment of the 7th Pay Commission is given below
Resolution on appointment of the 7th Pay Commission
The delegate conference of INTUC demands the central government of India to appoint 7th pay commission without any delay.
The 6th central pay commission has recommended a new concept of Pay Band and Grade Pay as replacement to the 5th CPC pay scales/pay structure, which was accepted by the government. Consequently the revised Pay Band/Grade Pay was implemented with effect from January 1, 2006.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAJYA SABHA
UNSTARRED QUESTION NO-1704
ANSWERED ON-23.08.2013
Demand for new National Pay Commission
1704 . SHRI D. RAJA
(a) whether it is a fact that all Railway trade unions have threatened to go on a general strike if their demand for a new National Pay Commission is not announced within a period of four months; and
(b) if so, the details thereof and Government’s reaction thereto?
LOK SABHA
UNSTARRED QUESTION NO 897
ANSWERED ON 08.08.2013
STRIKE BY RAILWAY EMPLOYEES
897 . Shri GURUDAS DAS GUPTA
R. THAMARAISELVAN
P. LINGAM
S. RAMASUBBU
Will the Minister of RAILWAYS be pleased to state:-
(a) whether the All India Railwaymen’s Federation and National Federation of Indian Railwaymen have threatened to go on an indefinite strike in case their demands are not met;
(b) if so, the details thereof; and
Confederation Secretary has informed that the Joint meeting with the leaders of AIRF (Railway), AIDEF (Defence) has been postponed to 29th June, 2013, which was originally scheduled to be held on 15.6.2013.
This information has been updated in Confederation website as follows
JOINT MEETING OF AIRF, AIDEF & CONFEDERATION ON 29TH JUNE 2013 AT DELHI
A joint meeting of the leaders of Railway (AIRF), Defence (AIDEF) and Confederation of Central Government Employees & workers will be held at New Delhi on 29th June 2013 for deciding future course of joint action. The meeting earlier scheduled to be held on 15th June 2013 is postponed to 29th June 2013.
National Mazdoor Conference today urged Prime Minister to appoint the 7th pay commission at the next cabinet meeting as employees and pensioners will be entitled for pay commission with effect from January 1, 2016.
"We urge the Prime Minister to appoint Chairman and other members of the 7th pay commission and take decision in this regard at the next cabinet meeting and start discussion with representatives of both Central and State governments employees as Central and State governments employees and pensioners will be entitled for pay commission with effect from 1-1-2016", President of the National Mazdoor Conference (NMC) Subash Shastri said today.
He said that the appoint of 7th Pay Commission will end confusion and uncertainty among the employees and pensioners on this issue once for all.
Addressing a one day workers convention at Brahamin Sabha here, Shastri pointed out that except sixth pay commission all earlier pay commissions were constituted in the 3rd year of every decade.
In other words earlier pay commissions except 6th pay commission were formed well before its implementation become due.
"A notification for constitution of the 7th pay commission is the need of the hour, which is bound to have bearing on about one core employees and pensioners, both in Central as well as State governments," NMC Chief added.
Recalling that it was under Prime Minister Manmohan Singh that last pay panel was set up in 2005, after previous government failed to do so in 2003, Shastri requested that decision be "taken on priority for constitution of the pay commission."
"50 per cent of DA should be forthwith merged into basic pay and pension," he said, adding, 20 per cent Interim relief should be sanctioned as early as possible in favour of the employees and pensioners.
Shastri also insisted on the regularisation of daily wagers who have completed seven years of service in Mach 2012, adding their monthly emoluments should be raised to Rs 10,000 per month.
Source: www.business-standard.com
The General Secretary of Confederation of Central Government Employees and Workers of Karnataka State published a valuable post regarding 7th CPC. It is reproduced the same for your reference.
7th CPC Demand
Comrades,
Confederation of Central Government Employees and Workers have been demanding constitution of the 7th CPC, DA merger , and other 15 charter of common demands of the Central Government Employees apart from 48 common demands of the CG Employees which has been accepted by the Kolkatta conference.
The Common questions & answers which the Government of India has been answering is that as follows.
1) The 6th CPC has not recommended the DA merger has recommended 25% increase in certain allowances.
2) The 6th CPC has not recommended the constitution of the 7th CPC and is silent on this issue.
3) Normally it takes 10 years to set up another Central Pay Commission.
4) The DA as recommended as per the Consumer price index is released which works out to 80% as on 1/1/2013. So when ever the prices have gone up DA is provided to compensate the rising of prices.
5) If another Central Pay Commission is set up there will be huge burden on common man, at this stage the Government of India cannot afford to set up 7th CPC.
6) The anomalies are being taken up the National anomalies committee.
Now comrades the above reply are standard in nature, all the above questions are answered in the following text.
If we really look at the DA and the Cost of living we can find that the actual cost of prices have gone up over 200% and the actual DA we are getting is only 80%. Hence there is a big gap between the actual price rise and the real DA we get there are many factors behind it, hence 7th CPC and DA merger are too vital things to bridge the Gap between the actual spending and the actual salary. For example in case of an MTS / LDC / Postmen his salary will be around Rs 15,000/- The actual spending is Rs 25,000/ which includes house rent of Rs 8,000/- (against Rs 3000/- as HRA) light bill, water bill telephone bill, petrol bill, local travelling etc itself will account for Rs 5000/- apart from purchase of provisions and vegetables which accounts for Rs 12,000/ for a family of 4 persons. Apart from above there will be many unforeseen expense such as attending marriages, medical, Children education expenses, which may work out more than Rs 30,000/- today the salary given to the CG Employees by the Central Government are insufficient. The minimum wages should be Rs 25,000/- the actual salary should be doubled.
Today the Government has itself admitted that the inflation is around 11% and the Consumer Price Index has crossed more than 110 points from 116 as on 1/12006 to 226 points as on April 2013. In that case the actual DA should have been 110 % not just 87% as on April 2013.
Once the price rise is more than 100% ,we are entitled for an Central Pay Commission and DA merger. Comparing price rise in last 30 yrs are so we can observe in last six years the price rise graph has risen dramatically, ie the prices have increased to a maximum beyond common mans reach, the rupee value has gone down drastically , internationally the dollar rate is higher, GDP is very low just around 6%. The purchasing power has gone down. The value of our salary six years back and now if we make a simple compare, our salary is nothing compared to private market. Now we observe that the Banks, LIC & PSU wages are revised every 5 years. As far as CG Employees it is more than 10 yrs. The DA has crossed more than 50% as on 1/1/2011. We should demand 7th CPC effective day from that day ie 1/1/2011.
The DA merger was accepted principal of many CPC and 5th CPC had recommended it there by if DA merger is implemented our salary will increase by 20 to 25 %. and we should get arrears from 1/1/2011. This will also affect other allowances such as HRA, Tour TA/DA etc. The present DA as on April 2013 is 87%. and in a span of one year it will cross 100%. there by dual benefit we should get.
The Railways have got the benefit in revision of many allowances let it be OTA, NDA, Compassionate appointment etc. Where as for other CG Employees many of the allowances are not revised from past 15 years or so
Even the 5th & 6th CPC Pay Anomalies are not rectified even after many years. there is discontent amongst the employees.
The actual wage bill is just 8.5 % of the revenue collection. The Government being model employer should pay its employees the real wages.
Our joint struggles have yielded results in the past we have to once again wage a long battle before the Government, the above statements by the Government will also undergo a change if we are serious about the issue.
If we look at the actual prices recommended by 6th CPC wide para number 2,21 and the current prices we can notice that
6th CPC rates and present rates
common items used on daily basis
Comparative Chart:
| Sl no | Item | Per | 6th CPC rates | Rates | Rates as | % change |
| in Rs as in | as per CPI | per Market | compare | |||
| table 2.21 | in Rs | in Rs | to 6th CPC | |||
| as on 1.1.2006 | as on 1.1.13 | as on 1.1.13 | prices | |||
| 1 | Rice | Kg | 18 | 26 | 55 | 266 |
| 2 | Dal (Toor/ urd) | Kg | 40 | 59 | 85 | 145 |
| 3 | Raw Veg | Kg | 10 | 15 | 50 | 500 |
| 4 | Greenleaf Veg | Kg | 10 | 14 | 25 | 250 |
| 5 | Other Veg | Kg | 10 | 17 | 40 | 400 |
| 6 | Fruits | Kg | 30 | 25 | 80 | 266 |
| 7 | Milk | lt | 24 | 26 | 34 | 125 |
| 8 | Sugar and jaggery | Kg | 24 | 34 | 40 | 166 |
| 9 | Edible Oil | Kg | 50 | 96 | 100 | 200 |
| 10 | Fish | Kg | 120 | 157 | 320 | 266 |
| 11 | Meat | Kg | 120 | 257 | 320 | 266 |
| 12 | Egg each | each | 2 | 4 | 5 | 250 |
| 13 | Detergents etc | Kg | 200 | 240 | 350 | 175 |
| 14 | Clothing | Mt | 80 | 61 | 150 | 187 |
| 15 | Cokked meals | 32 | 70 | 187 |
CPI: Consumer Price Index published by Government of India
Market Rates as per local market rates in Bangalore
There are nearly 252 items in the consumer basket for determination of consumer price index, in real terms the essential items for determination of CPI should have been only 52 items as per need based wages, by keeping a vast items in the basket the actual price rise is not reflected.
The actual DA for central government employees should have been 200 % not just 80% as on 1/1/2013. The Consumer Price Index of 2001 which was at 115 points as on 1/1/2006 should have been more than 300 points rather than at 219 points as on 1/1/2013. The Miscellaneous articles weight age accounts for 25%. the food articles accounts for 58% weight age . Even if the rise in food articles is there, the cost of TV Computer, Mobile etc where there is reduction is taking place , thus depriving of the actual increase in CPI. Overall the Consumer Price Index for the CG Employees is not satisfactory, this has deprived us of the actual DA & wages.
Current DA formula
Dearness Allowance = (Avg of AICPI for the past 12 months - 115.76)*100/115.76
by which is the DA for entire year of 2006 was only 2% due to faulty formula.
The Average of the past 12 months should be removed and the division factor of 115.76 is also not correct. The weighted of three months average should have been taken in account rather than 12 months average, by this today DA would be 108% rather than 87%. when we are getting DA in six months, why should we go for 12 months average.
The actual cost of the goods at villages and the cities are differently different The cost of one kg of tomato will cost around Rs 15 in a village after it brought to a retails shop in a city it is sold at Rs 40/- per kg. The weight age of just 20% is not correct it should be 40% .
The whole system of the All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 & DA formula for the Government employees is wrong and needs a relook.
Now the question of government paying capacity we can observe that actual spending on wage bill is on 8.5% of the revenue collection compared to 30% earlier days.
The background of the demand for setting up the 7th CPC raised by the Central Government employees on the ground that the wage revision was due in January, 2011,it would be pertinent to examine the wages as a ratio to the revenue resources and revenue expenditure of the GOI in the crucial years 1960-61`,1975-=76, 1986-087, 1997-98 and 2006-07 the relevant years in which the 2nd, 3rd,4th 5th and 6th CPC recommendations were given effect to. It is not difficult to discern the declining trend over the years , which is suggestive of the erosion in the real wages of the Public servants in India.
| Year | Revenue Budget | Wage Bill | Wage Bill as % of | ||
| Total Revenue receipts | Total Revenue Expenditure. | Revenue Receipts | Revenue expenditure. | ||
| 1960-61 | 1,297 | 1,246 | 417 | 31.3 | 33.5 |
| 1975-76 | 8,075 | 7,189 | 1,887 | 22.0 | 22.8 |
| 1986-87 | 33,083 | 40,860 | 6,100 | 18.4 | 14.9 |
| 1997-98 | 1,33,901 | 1,80,350 | 27,430 | 20.5 | 15.2 |
| 2006-07(BudgetEstimate) | 4,03,465 | 4,88,192 | 41,770 | 10.4 | 08.5 |
We could see the emerging picture of a declining trend in the ratio of wages and salaries both with reference to revenue receipts and revenue expenditure.
| Years | Total Rev. Receipts | Total Rev. Expenditure | Wages & Salary Bill Amount Value | Wage Bill as % of Revenue Receipt | Wage Bill as % of Revenue Expenditure |
| 1991-92 | 66,047 | 82,308 | 10,744 | 16.3 | 13.1 |
| 1992-93 | 74,128 | 92,702 | 13,397 | 18.1 | 14.5 |
| 1993-94 | 75,453 | 108169 | 14585 | 19.3 | 13.5 |
| 1994-95 | 91,083 | 122112 | 15721 | 17.3 | 12.9 |
| 1995-96 | 110130 | 139860 | 18023 | 16.4 | 12.9 |
| 1996-97 | 126279 | 158988 | 20396 | 15.6 | 12.8 |
| 1997-98 | 133901 | 180350 | 27430 | 20.5 | 15.2 |
| 1998-99 | 149510 | 217419 | 31560 | 21.1 | 14.5 |
| 1999-00 | 181513 | 249109 | 33978 | 18.7 | 13.6 |
| 2000-01 | 192624 | 277858 | 33986 | 17.6 | 12.2 |
| 2001-02 | 201449 | 301611 | 31407 | 15.6 | 10.4 |
| 2002-03 | 231748 | 339627 | 33317 | 14.4 | 9.8 |
| 2003-04 | 263878 | 362140 | 34554 | 13.1 | 9.5 |
| 2004-05 | 306013 | 384351 | 38653 | 12.6 | 10.1 |
| 2005-06RE | 348474 | 440295 | 40047 | 11.5 | 9.1 |
| 2006-07RE | 403465 | 488192 | 41774 | 10.4 | 8.5 |
Source: http://karnatakacoc.blogspot.in/2013/06/7th-cpc-demand.html
