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Joint Campaign Of Confederation And AISGEF Against NPS And Outsourcing

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Joint Campaign of Confederation and AISGEF Against NPS and Outsourcing

JOINT CAMPAIGN OF CONFEDERATION & AISGEF AGAINST NPS AND OUTSOURCING – SIGNATURE CAMPAIGN FEBRUARY 10TH TO MARCH 10TH – COPY OF MEMORANDUM TO BE SUBMITTED TO PRIME MINISTER AFTER OBTAINING SIGNATURE

To

The Hon’ble Primie Minister of India

We, those who signed in this memorandum are state and central Government Employees of the country . We may submit the following burning issues of the state and central Government Employees for your kind consideration and disposal.

The system of pension as a social security benefit to the employees in Government sector in India has been existing since the early British days. After independence the pension system was further improved and family pension was also introduced . The Defined pension scheme for the government employees is a well-built scheme as the best of all social security benefits for the employees and they are not required to contribute anything for pension.

Government of India introduced contributory pension to employees those who entered in government service on or after 1.1.2004 .Majority of the state Government s also introduced the same for their employees. The Contributory Pension Scheme is totally depend on the profit and loss in the share market and Government have no control on the fund and it has nothing to do with the welfare of the employees or any individual or even Government finances.

The concept of pension as elaborated by the 4th Central Pay Commission, is ‘Pensions to the former members of armed forces and civilian employees of Central Government is not by way of charity on an ex-gratia payment, or a purely social welfare measure was totally changed by . It is in the nature of a “right” which is enforced by the law”. Later the concept was further strengthened by the Land mark Judgement delivered by the Supreme Court in 1982 in a Writ Petition filed by D.S.Nakara Vs the Union of India. Supreme court declared that the Pension is not only compensation for loyal service rendered in the past but has also a broader significance in that it is a measure of socio-economic justice which inheres economic security in the fall of life .The PFRDA Act is against the earlier ruling of the Supreme Court on the employees’ Right to Defined Benefit Pension as cited earlier.

There is no assurance, for getting pension ,except market based guarantee in NPS. The stock markets have never remained consistently strong over a long period of time. This volatility of stock market is a cause of serious concern about the sustainability of the National Pension Scheme itself.

The transition from this Defined Benefit Pension System to the Defined Contribution Pension System will make civil services more unattractive. Majority of State Governments are reluctant to remit the employer’s contribution to the pension fund. There is no assurance in getting the pension to the employees and workers.

For all these reasons, particularly the cut in salary and pension of the employees, absence of Government guarantee for retirement benefits in the National Pension Scheme and the distinct possibility of a sustainable Defined Benefit Pension System along with extension of social security system for the unorganised sector, we are not in a position to accept the National Pension Scheme. We strongly urge that a more in depth factual and analytical discussion is essential on National Pension System.

Contract Labour is one of the acute form of unorganized labour. Under the system of contract labour, workers are employed on the contract basis. The contract worker is a daily wager or the daily wages are accumulated and given at the end of the month. Contract workers are paid much lower wages than they would be entitled to under direct employment. This system led to whole-scale exploitation of labour, and a series of demands were made before tribunals for the abolition of contract labour system.

The system of employing contract labour is prevalent in civil service and in the services sector. The civil service has a major role in the smooth functioning of a Democratic Government. As part of overall development of the society and increase in population, the civil service also must be extended its wing. Education, Health, Public Transport, Communication, Welfare measure to women and children are all developed much. Numerous job opportunities have created round the world in Government Service.
The regular appointment to government sector ceased. Instead contract employment started. As such it is seen that the number of regular employees in the civil service are decreasing day by day, whereas the number of daily waged/contract/outsourced employees are increasing . By this time all the centrally sponsored schemes also emphasis on contract appointment. All the flagship programmes of Government of India are implementing with Daily waged/Contract/Casual appointment.

Bypassing UPSC and State Public Service Commission and Employment Exchanges which are the main recruitment agencies for central and State Governments, Unemployment among the educated youth is the main reason for Contract Employment. On contract employment the appointment is for limited monthly income. This is a kind of exploitation of labour.

The Supreme Court of India in a Land mark Judgment ruled that temporary employees performing similar duties and functions as discharged by permanent employees are entitled to draw wages at par with similarly placed permanent employees. The principle must be applied in situations where the same work is being performed, irrespective of the class of employees. The constitutional principle of ‘equal pay for equal work’ has been upheld by the Supreme Court of India.

Hence we appeal to the Hon’ble Prime Minister of India to take urgent measures to repeal the National Pension system and ensure defined pension to all employees and to regularise all Contract / Casual Employees and ensure equal wages for equal work for all employees including contract and casual employees. We appeal the Government of India to heed the demands of the employees in the country and take appropriate action in this regard.

New Delhi

7th Pay Commission Minimum Pay Comparison With Few States

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7th Pay Commission Minimum Pay Calculation: Comparison of Methodology for calculation of minimum Pay of Central Government and a few State Governments as on 1/7/2017

Comparison of Minimum Pay

Comparison of Minimum Pay of Central Government and a few State Governments as on 1/7/2017.

Pay Commission Objective: It is the endeavour of every pay commission to ensure that the pay and allowances of employees should be ‘fair and reasonable’. The pay structure should also motivate the employees to reasonable levels of performance in the tasks assigned to them, so that the general public derive the benefit of their service as intended.

7th CPC of Central Government: The Central Government has been following the practice of pay revision for employees once in ten years. Pay scales of the Central government employees have been revised with effect from 1.1.2016 based on the report of the Seventh Central Pay Commission. The revised minimum pay effective from 01.01.2016 is 2.57 times the pre-revised basic pay. The minimum pay of the central employees has been worked out at Rs.18,000/- per month and represents a real increase of 14.29% of the pre-revised wages. The multiplication factor adopted for revising all the other scales ranges between 2.57 and 2.72 resulting in maximum pay of Rs.2,05,400 corresponding to the highest pre-revised pay scale other than the apex pay scale of Rs.80,000 which is raised to Rs.2,25,000. The Cabinet Secretary’s pay is fixed at Rs.2,50,000.

Employees Associations (Staff side JCM) have also sought minimum pay revision to Rs.26,000 with effect from 01.01.2016.

Pay Revision of various State Governments
Government of Kerala Pay Scales: The revised pay structure introduced by the Government of Kerala witheffect from 1.7.2014 is based on the recommendations of the 10th PayRevision Commission and relates to index level of 239.92 points ofAIACPI (IW). Basic Pay of Group “D” employee is fixed at Rs 16500/-

The rates of increment range from Rs.500 to Rs.2,400. The payment of DA formula is unaltered and continues to be as per the central government formula to neutralise the price rise over and above the 239.92 points twice in a year.

Andhra Pradesh Pay Scales: The revised pay structure formulated by Government of Andhra Pradeshon the basis of the recommendation of 10th Pay Revision Commissionrelates to index level of 220.61 points of AIACPI (IW), Basic Pay of Group “D” employee is fixed at Rs 13000/-

The HRA ranges from 30% to 12% of basic pay subject to a maximum of Rs.20,000 depending upon the classification of places and pay.

Karnataka Pay Scales: The revised pay structure formulated by Government of Karnataka on the basis of the recommendation of 6th Pay Revision Commission relates to index level of 276.9 of AIACPI (IW).

Costs of consumable items obtained from the Department of Economics & Statistics, Government of Karnataka are utilised for their calculation.

CLICK HERE FOR REPORT 
http://www.finance.kar.nic.in/6thPay/6thPayComReport.pdf

(For English version read from page number 135 on wards)

The 6th pay commission appointed by the Karnataka Government recommended a 30% increase in the salaries of around 5,20,000 government employees and 73,000 employees from “aided institutions”.

The revision of pay and pension is to come into effect from 1 July 2017 with benefits paid from 1 April 2018. The Group “D” minimum basic pay is fixed at Rs 17000/-.

Methodology for calculation of minimum wage adopted by Pay commissions both Central and State Pay Commissions

Central pay commissions as well as pay commissions in some states have adopted the approach of determining the minimum pay for employees based on the cost of a minimum acceptable standard of living for a household. This is calculated on the basis of the current prices of daily necessities like food, clothing, housing, etc., for a family of three consumption units typical in the case of young employees starting their careers in government. The normative consumption requirements of the family as adopted in the 15th Indian Labour Conference in 1957 are considered for this purpose. While the minimum pay is thus worked out on the basis of a set of quantitative norms and based on Dr. Wallace Aykroyd’s formula , the maximum pay for employees at the highest levels is to be determined as that required to attract and retain persons of qualifications and skills appropriate for the higher positions in government services.

Comparative picture of pay of Central Government and State Government in regards to minimum wage as on 1.7.2017

Govt. of India
Group “C” Min Basic Pay =Rs 18000/-
DA 5% = Rs 900/-
Total Basic Pay + DA =Rs 18900/-

Andhra Pradesh & Telangana
Group “D” Min Basic Pay =Rs 13000/-
Provide for Skill by adding 25% =Rs 3250-
Total Group “C” Min Basic Pay = Rs 16250/-
DA @ 24.1% = 3916/-
Total Basic Pay + DA=Rs 20166/-

Kerala
Group “D” Min Basic Pay =Rs 16500/-
Provide for Skill by adding 25% Rs 4125/-
Total Group “C” Min Basic Pay =Rs 20625/-
DA @ 14% = 2887/-
Total Basic Pay + DA= Rs 23512/-

Karnataka
Group “D” Min Basic Pay = Rs 17000/-
Provide for Skill by adding 25% = Rs 4250-
Total Group “C” Min Basic Pay = Rs 21250/-
DA = NIL
Total Basic Pay + DA = Rs 21250 /-

Ratios between minimum and maximum pay

The existing ratios between minimum and maximum pay of the central government and the States is as follows:

Government of India 1 :12.5
Andhra Pradesh 1:8.527
Kerala 1 :7
Karnataka 1:8.86

The gap is highest in Central Government should be reduced ratios between minimum and maximum pay to 1: 8

Hence there is need for revision of minimum wage for Central Government employees and also fitment formula on the lines of the State Government Pay Commissions, the State Government economic conditions are not as good as the Central Government still the State Governments are paying more for their employees comparing it to the Central Government, in case of the 7th CPC the Central Government Employees got only 14.29% , the Group “A” and above officers of Central Government got more pay hike due to higher fitment formula of 2.72 . Thus injustice is done for Group “C” and Group “B”.

whereas the Karnataka State Government employees got 30% wage hike , Central Government Employees got only 14.29% wage hike , the uniform multiplication factor should be fixed for the Central Government employees and also Central Government Employees should also get 30% wage hike .

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