7CPC Recommendations by - Col Ranbir Lamba

RECOMMENDATIONS  FORWARDED BY ME TO  7^th CPC AND FORCES HQ AT  ON SET OF 7^TH CPC COMMISSION

REST LETS SEE WHAT FORCES HQ HAVE PROJECTED & WHAT 7^TH CPC WILL GIVE.

 

1] Income Tax:

(i) Allow 30% standard deduction to salaried employees.

(ii) Exempt all allowances.

(iii) Raise the ceiling limit as under:
(a) General – 2 Lakh to 5 Lakh
(b) Sr. Citizen – 2.5 Lakh to 7 Lakh
(c) Sr. Citizen above 80 years of age – 5 Lakh to 10 Lakh

(iv) No Income Tax on pension / family pension and Dearness Relief.

2]  . Pension:

A]  NORMAL PENSION ;IT  SHOULD BE  @ 70% of Last Pay Drawn (LPD) instead of 50% presently.

NOTE{ IT WAS 70% OF SCALE  IN 1973} IN OREDR  TO OVERCOME DE-GRADATION OVER 3 PAY SCALES

ACTION LIKELY TO BE TAKEN  BY 7^TH CPC...IN MY VIEW .

PENSION @ 65% MAY BE AGREED

 B[ AGE RELATED PENSION:

THE  AVERAGE OF INDIAN IS 70% SO NEED TO INCREASE AGE RELATED  pension age-based as under:

NOTE[ AS DEFECE PERSONAL RETIRE EARLY & DIE ALSO EARLY AS COMPARE TO CIV COUNTER PART,SO  AGE FOR DEFECE PERSONNEL  INCREASE PENSION SHOULD STATRT FRO 60 YRS AS FOLLLOWS

60 Years – 70% of Las Pay Drawn (LPD)
65 Years – 75% of LPD
70 Years – 80% of LPD
75 Years – 85% of LPD
80 Years – 90% of LPD
85 Years – 100% of LPD

C[ ENSURE ) Parity of pension to retirees before 1.1.2006.

An Indian life  .Life expectancy in our nation.
India by the Numbers: According to the Population Reference Bureau's 2000 World Data Sheets, life expectancy at birth for Indians is between 60 and 61 years. This was also confirmed by the most recent Census of India in 2001. Only 4% of our population is over the age of 65%. In parts of the world with much better access to medicine and healthcare, these numbers are substantially higher. In Japan, for example, nearly 17% of the population is aged over 65 years. And the average Japanese, with a life-expectancy of 80 years, lives fully a third longer than the average Indian.

Region	Life Expectancy at Birth	Population > 65 years
World	66 years	7%
India	60 - 61 years	4%
Japan	77 - 84 years	17%

• State-wise data are included below; more indicators can be found in the "FACTFILE" section on the homepage for each state.

·                  STATE           TOTAL    MALE    FEMALE

·                Andhra Pradesh      63.1    61.6    64.1

·                Assam               57.2    57.1    57.6

·                Bihar               60.2    60.7    58.9

·                Gujarat             62.8    61.9    63.7

·                Haryana             64.5    64.1    65.0

·                Himachal Pradesh    65.6    65.1    65.8

·                Karnataka           64.0    62.4    65.5

·                Kerala              73.5    70.6    76.1

·                Madhya Pradesh      56.4    56.5    56.2

·                Maharastra          65.8    64.5    67.0

·                Orissa              57.7    57.6    57.8

·                Punjab              68.1    66.9    69.1

·                Rajastan            60.5    59.8    60.9

·                Tamilnadu           64.6    63.7    65.7

·                Uttar Pradesh       58.4    58.9    57.7

·                West Bengal         63.4    62.8    64.3

·                India               61.7    60.8    62.5

Source: Registrar General of India (2003) SRS Based Abridged Life Tables, SRS Analytical Studies, Report No. 3 of 2003, New Delhi: Registrar General of India. The data is for the 1995-99 period; states subsequently divided are therefore included in their pre-partition states (Chhatisgarh in MP, Uttaranchal

3. APPLY  CORRECTION OF 6^th CPC & POINTS OF 7^th CPC

1.TAKE  6 TH CPC AS BASE  MULTIPLE OF 3.25 TIMES,

SEE THE TABLE AT THE END & CORRECT  ALL ANOMALIES NOT SORTED OUT TILL DATE .

 

7th CPC Pay Scale – Minimum wage & Pay fixation formula for 7th CPC worked out by COC Karnataka

at 11:23 AM Posted by cgenewstools@gmail.com

 

Minimum wage & Pay fixation formula for 7th CPC worked out

Providing proper minimum wage of Rs 27000/- for CG Employees including that of GDS employees and pay fixation formula for 7th CPC worked out .

Providing proper minimum wage of Rs 27000/- for CG Employees including that of GDS employees and pay fixation formula:

The staff side of the JCM had given representation demanding Rs 10,000/- as minimum wage for Central Government Employees. The 6th CPC in its report vide para no 2.2.15 had calculated a minimum wage of Rs 5478/- today if we are calculate the minimum wage it should be more than Rs 21,000/- apart from HRA and other allowances. Hence there is three times increase in actual prices calculated by the 6th CPC and the current prices. The current wages of the CG Employees should be doubled at least including that of GDS.

The most comprehensive criteria for covering all the basic needs were evolved by the 15th Indian Labour Conference (ILC) in 1957 for fixing minimum wages. The norms are that a need-based minimum wage for a single worker should cover all the needs of a worker’s family consisting of a spouse and two children.

The food requirement was to be 2,700 calories, 65 grams of protein and around 45-60 grams of fat as recommended by Dr Wallace Aykroyd for an average Indian adult of moderate activity. Dr Aykroyd pointed out that  animal proteins, such as milk, eggs, fish, liver and meat, are biologically more efficient than vegetable proteins and suggested that they should form at least one-fifth of the total protein.

Dr Aykroyd worked on nutrition for nearly 30 years and was director of the Nutrition Division, Food and Agriculture Organisation, United Nations. In 1935, he was appointed Director of the Government’s Nutritional Research Centre in India, situated in Coonoor in the south. The 15th ILC further resolved that clothing requirements should be based on per capita consumption of 18 yards per annum, which gives 72 yards per annum for the average worker’s family. For housing, the rent corresponding to the minimum area provided under the government’s industrial housing schemes was to be taken. Fuel, lighting and other items of expenditure were to constitute an additional 20% of the total minimum wage.

The Supreme Court upheld these criteria in the case of Unichoy vs State of Kerala in 1961. In the later Raptakos Brett Vs Workmen case of 1991, the SC went one step further, and held that besides the five components enunciated by the 15th ILC, minimum wages should include a sixth component, amounting to 25% of the total minimum wage, to cover children’s education, medical treatment, recreation, festivals and ceremonies. The SC also observed that a wage structure including the above six components would be “nothing more than minimum wage at subsistence level” which the workers must get “at all times and under all circumstances”.

Minimum Salary-Analysis &Recommendations para 2.2.15

The Commission, however, agrees that the norms set by the 15th International Labour Conference (ILC) are appropriate for computing minimum salary. It is also observed that the minimum salary is applicable at the time a person joins the Government which will usually be at a young age when a person may be just married and will not have responsibility of parents or many children. Accordingly, the family unit for minimum salary can only be taken as three.

The Minimum Salary should be based on 6 units not three units as per 6th CPC calculation. As both parents and two children are depending on the salary of Government servant apart from spouse. the additional burden the employees will carry after a few years of service as his parents would have retired from service and are wholly dependent on him also his children would have stepped into school / college level, even small baby requirements are much unlike in the past years, the hence the minimum wage he gets will not compensate with the family financial burden Hence the whole calculations needs a undergo a drastic change in next CPC taking into account of 6 units rather than 3 units.

The Sixth Central Pay Commission has recommended a minimum wage of Rs 6600/- per month against the demand of Rs 10,000/- per month as worked out by Staff side of JCM. Today the minimum need based wage works out to Rs 21,000/ per month+ HRA+ allowances. The general minimum expenses per month for a family of four members are as follows when a Government servant joins the duty with two small children:

a) Vegetables Rs 3000/- 

b) Food Grains /Groceries Rs 7000/-. 

c) House rent single room Rs 6000/- 

d) Clothing Rs 3000/- 

e) Children education and their expenses Rs 2000/- 

f) Electricity Chargers Rs 800/- 

g) Water Charges Rs 250/- 

h) Transportation charges Rs 1000/- 

i) TV cable rent Rs 300/- 

j) Medical Expenses Rs 500/- 

k) Mobile expenses Rs 250/- 

l) Cooking Gas Rs 450/- 

m) Recreation charges Rs 500/- 

n) Personal expenses Rs 1000/-

Total Rs 26500/-Hence minimum wage works out to Rs 27,000/-

 

The expenses will increase as the age of Government servant goes up and family responsibility will increase as he has to educate the children in professional courses, marriage of his children has to be performed, his medical expenses will increase, his parents will stay with him and now there are quite dependant on the Government servant for their lively hood. As such the salary should be more to meet his expenses. The Government is a model employer hence the wages should be provided with the needs.

 

Table: Fixation of Minimum wage as on 1.1.2006 as per 15 ILC norms as per Table 2.2.1 of the 6th compare minimum wage should be three times the 6th recommendations.

 

Items	Per day PCU (In grams)	Per month 3CU (In kg)	Price per kg. taken by 6th CPC (In Rs)	Total cost as per rates of 6th CPC (in Rs) As on 1/1/2006	Price per kg. as per prevailing market rates (in Rs) 1/6/13 At Bangalore	Total cost as per prevailing rates (in Rs) 1/6/2013
Rice/wheat	475	42.75	18	769.5	55	2351
Dal (Toor/ Urad / moong	80	7.2	40	288	80	576
Raw Veg.	100	9.00	10	90	60	600
Greenleaf Veg	125	11.25	10	112.5	40	400
Other Veg.	75	6.75	10	67.5	45	450
Fruits	120	10.80	30	324	80	864
Milk	200 Ml	18 Lt.	24.00	432	35	630
Sugar and Jaggery	56	5.00	24.00	120	45	225
Edible Oil	40	3.6	50	180	100	360
Fish		2.5	120	300	180	450
Meat		5.00	120	600	375	1875
Egg		90	02	180	04	360
Detergents etc		200		200	400	400
Clothing		5.5 Mt.	80/Mt	440	200	1100
Total				4103.5		10641
Misc. @ 20%*				827		2660
Total				4930.5		13301
Addl. Exp @ 25%**				400		3325
Total				5330.5		16626
Housing @ 10%***				148		600^
Grand Total				5478.5		17226

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 that is wife, husband and a child no parents or second child is taken into account.

* 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.

Total minimum wage is Rs 17225+ HRA Rs 7000/- + Transportation Allowance Rs 2500/-= Rs 26725 that is Rs 27,000/-.

The fixation of minimum basic pay of Rs 21000/- is taking into the account of minimum skill and education requirement as 10th Standard as prescribed by the 6th CPC. As the education requirement is more such as Diploma in Engineering or Degree in Science or Commerce, then the minimum basic pay should be Rs 40,000/- (8700+4200) X 3 = Rs 39,000/-. For Engineering Graduates and Master Degree it should be Rs 65,000/- .
The pay scales should start with a minimum basic pay including Grade Pay of Rs 21,000/- to end with 2, 10,000 with a ratio of 1:10 of minimum scale and maximum scale. Since government is a model employer they should provide minimum wages as per the 15 ILO conference and other wages as per the educational qualification & skill requirement of the job.

The multiplying factor is calculated as below:
The existing basic pay + Grade pay + DA 100% + weightage of 100% ( that is the difference between the actual price rise and the DA paid) that is the multiplying factor works out to three.

Note: The actual price rise is over 200% the DA is only 90%.

Or

The existing basic pay + grade pay+ DA 100%+DA merger = Net wage + weightage of 70% (that is the difference between the actual price rise and the DA paid).

The pay scales should have a multiplying factor of three, that means the existing pay scales and pay (basic pay + GP) should be multiplied by three. The pay scales arrived should not have any bunching of basic pay as done in the 5th CPC. The time scales should last for more than 10 years so that there is no stagnation.

The concept of fair wages has been deprived to CG Employees. Usually pay commissions had adopted a multiplying factor of 3.2 to 3.8 to arrive at the new scales compared to earlier scales. But the VI CPC adopted conversion factor of about 2.6 at the lowest where as it was about 3.6 at the highest scale. By this method well established ration 1:12 between the lowest scale and highest scale was disturbed by the VI CPC.

4] ADD NFU STATUS NORMS NOT YET  GIVEN TO ARMY SO FAR,WHICH ALL OTHER ENJOY, EVEN NOW DELHI HIGH COURT

HAS GIVEN NFU STATUS TO EVEN PARAMILTARY OFFICER.

IT IS FREAT IN JUSTICE TO FORCES

 

5] PUT ALL SELECTION GRADE  COL ,BRIG,MAJ GEN IN HAG SCALE[Higher Administrative Grades]

 

 

 6]PENSIONERS IS A DEFERED WAGE .HENCE PENSONER SHOULD GET ALL ALLOWANCES AS APPLICABLE TO SERVING .THE TERMS OF SERVICES SAYS HALF PAY. BUT ONLY DA IS BEING GIVEN THEN WHY ALL OTHER ALLOWANCES HAVE BEEN DISALLOWED,

 

GIVE ALL OTHER ALLOWANCES TO PENSIONER ALSO.

 

 7] ADD FAMILY PENSION @ AS 60 % AS AFTER DEMISE ALL OTHER INFRA EXPENDITURE DO NOT REDUCE

 

8] WORLD OVER ARMY IS PAID 75 % OR 100 % OF PAY, SO AT LEAST PAY 70 % OF PAY AS PENSION ALONG WITH ALL OTHER ALLOWNNCES. . PENSION TO BE 70 PERCENT OF BASIC PAY FOR ARMY; INDIAN ARMY IS ON DESIGN OF BRITISH ARMY. TILL 1955 ARMY PENSION WAS ON SAME LINE. BUT CIVIL BABU'S TOOK IT AWAY. IT SHOULD BE RESTORED AND BE PAID AS PAR WITH BRITISH COUNTER PART OR LIKE OTHER COUNTRIES. INDIAN OFFICER HAS TO FIGHT WAR; YOU CANNOT REPLACE INDIAN OFFICER WITH OFFICER FROM OTHER COUNTRIES. PREVIOUSLY PRINCELY /ELITE FAMILIES USED TO SEND PERSON TO FORCES, NOW CREAMY LAYER IS NOT COMING TO ARMY DUE TO POOR PAY PACKETS & DOWNGRADATION OF ARMY IN INTER-SE-SENIORITY

9] Merger of 50% DR with basic pension w.e.f. 1st Jan 2011. Presently DR is 100% and from 1st Jan, 14. NOW MERGE 100% IN BASIC PENSION WEF 1/1/2014 . DA IS MOTHER OF ALL ALLOWANCES. AS SERVING PERSONALS GOT ALL OTHER ALLOWANCES  ENHANCED ON BASIS OF DA AT 50% BY 25% THAN HOW CAN YOU FORGET MERGING DA IN PAY/PENSION AS DP TO PENSIONERS

10 We seek full parity between past and future retirees.

 

Any improvement in service conditions introduced for serving employees, such as full pension at 10/20 years service must be extended to past pensioners/retirees.

 

11] Restoration of commuted portion of pension in 12 years:

Restoration of commuted value of pension in 12 years: Commutation value in respect of employee superannuating at the age of 60 years between 1.1.1996 & 31.12.2005 and commuting a portion of pension within a period of one year would be equal to 9.81 years Purchase. After adding thereto a further period of two years for recovery of interest in terms of observation of Supreme Court in their judgment in writ petitions No 395-61 of 1983 decided in December 1986. It would be reasonable to restore commuted portion of pension in 12 years instead of present 15 years. In case of Person superannuating at the age of 60 years after 31.12.2005 and seeking commutation within a year, numbers of purchase years have been further reduced to 8.194. Also the mortality rate of 60 plus Indians has considerably reduced ever since Supreme Court judgment in 1986. And the life expectancy stands at 69 years now.

 

Refund Excess Recovery of Commuted Pension by the Govt

As per extant rules, commuted pension is restored after 15 years after the Govt makes full recovery of the commuted amount with interest. This period of 15 years is arbitrary, hypothetical and without any mathematical basis. Calculations show that the recovery exceeds much more than the dues.

Retirees between 1986 and 1995

The age of retirement during that period was 58 years. This category of retirees have all completed the prescribed period of 15 years for restoration of pension. Since 1.3.1971 and until 31.12.2005, the Commutation Factor (CF) was 10.46 for the 59 year old (age next birth day) retirees and the officially prescribed rate of interest was 4.75% p.a. Commutation allowed was 1/3rd of the basic pay. The basic pension of Secretaries who superannuated between 1.1.86 and 31.12.95 at the top of their pay scale (Rs. 8,000) was fixed at Rs.4, 000 and the commuted portion of their pension was Rs.1, 67,318 with a deduction of Rs.1,333 per month. The principal amount of Rs. 1,67,318 was fully recovered in 10.46 years [10.46 x 12 x 1333 = 1,67,318].

·         If we consider the prescribed interest rate of 4.75% p.a. as simple interest, the total interest works out to Rs.36,250. This is recoverable in 2.27 years [36250/1333 = 27.2 months or 2.27 years]. Thus, total recovery period of the commuted amount works out to 10.46 + 2.27 = 12.73 years. Even after full recovery, the pensioner kept on paying for 15 – 12.73 = 2.27 years. Thus, excess recovery = 2.27 x 12 x 1333 = Rs.36,311.

·         If we consider the prescribed interest rate of 4.75% p.a. as compound interest, the total interest works out to Rs.54,750. This is recoverable in 3.42 years [54750/1333 = 41.07 months or 3.42 years]. Thus, total recovery period of the commuted amount is = 10.46 + 3.42 = 13.88 years. Even after full recovery, the pensioner kept on paying for 15 – 13.88 = 1.12 years. Thus, excess recovery = 1.12 x 12 x 1333 = Rs.17,916.

Retirees between 1996 and 2005

 

The age of retirement was raised to 60 years after the 5th Central Pay Commission (CPC). Permissible commutation was also raised to 40% of the basic pay. Those who retired between 1996 and 1998 have already completed the prescribed period of 15 years for restoration of pension. Since 1.3.1971 and until 31.12.2005, the Commutation Factor (CF) was 9.81 for the 61 year old (age next birth day) retirees and the officially prescribed rate of interest was 4.75% p.a. Secretaries  who superannuated between 1.1.96 and 31.12.05 at the top of their pay scale (Rs.26,000), were sanctioned commuted pension amount of Rs.9,18,216 with a deduction of Rs.7,800 per month. The principal amount of Rs.9,18,216 is fully recovered in 9.81 years [9.81 x 12 x 7800 = 9,18,216].

·         If we consider the prescribed interest rate of 4.75% p.a. as simple interest, the total interest works out to Rs.2,12,114. This is recoverable in 2.27 years [212114/7800 = 27.2 months or 2.27 years]. Thus, total recovery period of the commuted amount works out to 9.81 + 2.27 = 12.08 years. Even after full recovery, the pensioner keeps on paying for 15 – 12.08 = 2.92 years. Thus, excess recovery = 2.92 x 12 x 7800 = Rs.2,73,312.

·         If we consider the prescribed interest rate of 4.75% p.a. as compound interest, the total interest works out to Rs.3,20,367. This is recoverable in 3.42 years [320367/7800 = 41.07 months or 3.42 years]. Thus, total recovery period of the commuted amount is = 9.81 + 3.42 = 13.23 years. Even after full recovery, the pensioner keeps on paying for 15 – 13.23 = 1.77 years. Thus, excess recovery = 1.77 x 12 x 7800 = Rs.1,65,672.

 WITH BEST WISHES AND WARM REGARDS

 COL RANBIR LAMBA[ ONE MAN ARMY]