Seeking improvements in the VII CPC report
The following points are prepared to include in the discussion and preparation of the memorandum, to be submitted to Government of India, seeking improvements in the VII CPC report.
Common multiplication factor for pay fixation should be 3.93
Basic + Grade Pay = 1.00
DP @ 50% = 0.50
DP @ 50% = 0.75
DA @ 25% = 0.56
Fitment weightage 40% = 1.12
Total = 3.93
For the PB-1, PB-2 and PB-3, the multiplication factor should not be less than 3.93 times so as to meet the reasonable minimum pay as per 15th ILC resolutions.
Determination of minimum pay has been done with 3 units of family members (Self – 1.0, spouse – 0.8 and for 2 children – 0.6 per head). Whereas, as per the NORMAL INDIAN HUMANBEING TRADITION, parents cannot be spared from family members’ strength. Hence, the unit factor to determine the minimum pay should be revised from 3 to 4.6 as parents constitutes 0.8 units per head. As per this unit factor 4.6, the minimum pay arrived at Rs.26,150/- and it can be rounded off to Rs.26,000/-.
The rate of annual income should be fixed at 5%.
The rate of HRA to be determined in view of current real estate trends. A family consisting 6 members need minimum 2 BHK house and this accommodation will cost at least Rs.12,000/- rental amount per month even at far distance from workplace in any metro city. Hence, keeping this justification and prevailing real estate trends, the rate of HRA should get fixed at 50%, 40% and 30% in X, Y & Z class city/town respectively. However, this amount should be linked to prevailing DA rate to get inflation proof.
All other allowances should be enhanced with 3.93 times to commensurate with inflation rate.
Most of the pay and allowances are being taken away in the name of income tax, sales tax, service tax and numerous varieties of the tax. Also, the allowances are being paid in proportionate to the prevailing price hike. Hence, all the allowances should be exempted from the income tax calculation.
Children Education Allowance should be paid on monthly basis through regular monthly salary on production of study certificate from the educational institution.
The 7th CPC has recommended abolishing all interest free advances including Medical Advance and LTC advance. All interest free advances in general and Medical / LTC advances in particular should get retained.
The newly proposed CGEGIS insurance coverage amount is adequate but the monthly premium amount is very high compared to opportunities kept open for public in nationalized / private insurance companies. In the event of more than 30 Lakhs employees covered under single term insurance policy in any insurance company, the monthly premium amount would be around 0.01% to 0.02% of sum assured depending upon the age group. The age group of employees range between 20 to 60 years and the average age can be considered as 40 years for CGEGIS. Hence, the premium amount for 40 years aged person will not exceed 0.015% of sum assured. Based on these facts, the premium amount for CGEGIS can be fixed as,
Level of Employee Monthly Deduction Insurance Amount
10 & above Rs.750/- Rs.50,00,000/-
6 to 9 Rs.375/- Rs.25,00,000/-
1 to 5 Rs.225/- Rs.15,00,000/-
Over Time Allowance should be paid at the rate of double payment on hourly basis without any ceiling on basic pay for eligible for OTA.
Recommendation to reduction in pay during 2nd year CCL should be condoned.
NPS should be scraped and all contributors to NPS should be shifted to GPF scheme.
There are about 8,50,000 vacancies exists in most of the ministries/departments in Govt. of India. Also, about 8,00,000 employees are in queue to get retirement on superannuation during next 10 years period. The existing vacancies should be filled immediately on emergency basis and necessary actions to be accelerated to refill the anticipated vacancies from the year 2016 onwards.
Bonus amount payable to employees on yearly basis is a hard earned unique payment. It cannot be either abolished or subsumed with any other incentive/allowances. The quantum of Bonus amount should get fixed at 1 month’s basic pay plus DA thereon to meet the 8.33% of minimum payable bonus amount.