Poor 7th Pay Commission Pay and allowances – Confederation of Central Government Employees and Workers Karnataka expresses disappointment of Central Government Employees

Central Government Employees disappointed for poor pay, allowances

New Delhi: Central government employees are feeling let down by the political authority of the country for denying them their due in terms of better monthly salary and allowances.

Despite representations to the Prime Minister, Home Minister, Finance Minister, Railways Minister, Departmental heads and Committees set up by the government to look into the pay and allowances related grievances, the employees have expressed utter disappointment that they have not been heard so far.

“ We had sought a minimum pay of Rs 26,000, they gave us Rs 18,000. After every meeting they do not say anything. We ask, how much you can improve upon, you tell us how much you can go, buy they don’t say anything, said K. K. N. Kutty, President, Confederation of Central Government employees and Workers, on the discussions the union has had over Allowances.
“There is no discussion in real terms, they simply listen to us and do not commit anything. We think the political authority, we don’t know, it could be Prime Minister, has not authorized the bureaucracy to commit anything to us,”added Kutty.

When around 33 lakh central government employees threatened to go on strike on July 11 protesting the implementation of 7th Pay Commission, the Finance Ministry had agreed to set up Anomalies Committee, and Allowances Committee who would be mandated to go through the fine print of the 7th Pay Commission.

Even after the formation of 22-member Anomalies Committee headed by Secretary, Department of Personnel and Training (DoPT) with members from both the official and staff side, and Allowances Committee headed by Finance Secretary, no settlement on the wage hike or allowances issue appears in sight.

The Government is yet to set up the high level committee on minimum wage, fitment formula revision and other main demands of central government employees as assured by Cabinet Ministers in July 2016.

The National Joint Council of Action, a front formed by six government staff unions, including Confederation of Central Government Employees (CCGE), All India Defence Employee Federation and National Coordination Committee of Pensioners Association representing the staff side of the central government employees have even threatened to go on a large scale agitation and hold a march up to the Parliament on December 15, if government fails to improve on pay and allowances over what has been implemented under 7th Pay Commission.
As per the notification for the implementation of the 7th Pay Commission, central government employees got 14.27 percent hike in basic pay at junior levels, which is said to be the lowest in 70 years.

The salary hikes of government employees indeed appear meager when compared to the 100 percent hike expected by the Members of Parliament soon.

The point not to be missed is that, while the salaries of central government employees were revised after 10 years, the MPs’ salaries were last revised in 2010.

Source : karnatakacoc

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Needless to say, news and developments on 7th Pay Commission are foremost things that draw the attention of Central Government Employees and Pensioners nowadays.

As the commission’s regular time frame for submission of report is getting completed in less than 11 months, employees and pensioners hope for either implementation of Revised 7th Pay Commission Pay and Pension in time or grant of DA merged pay with interim relief from 1st January 2016.

Both of these exercises would require a percentage of Dearness Allowance to be merged with pay. So Quantum of DA as on 1st January 2016 gains much significance here.

As of now, Central Government and Railway employees and Defence personnel are in receipt of DA of 107% from July 2014. With all the indices from Jan 2014 to Dec 2014 have been officially released, DA with effect from January 2015 is confirmed to be 113%.

Check this article : 6% DA hike from January 2015

Though increase in DA of 6% from January 2015 appear normal at par with increase in DA previously, additional DA this time was possible only due to higher Consumer Price Indices from Jan 2014 to July 2014.

The index from August 2014 to December 2014 is totally flat and remained at 253 for 5 months thanks to economical factors such as lesser oil prices, good monsoon etc.

As, period from July 2014 to Dec 2014 form the 1st half of the chain of CPI needed to calculate DA from July 2015, this no inflation scenario would definitely impact quantum of DA from July 2015. For example, if CPI (IW) is flat at 253 for two more months (Jan 2015 and Feb 2015) and one or two point increase in the next 4 months (Mar, Apr, May and Jun 2015) would result in DA increase of only 5% from July 2015

As far as DA from January 2016 is concerned, the cost of living indices from January 2015 to December 2015 will be the deciding factors. On account of various economical factors such as reduced interest rates etc., CPI (IW) may either be heading south or remain flat during this period, but it is too early to predict those factors now. Any way, it is sure that Consumer Price Index from January 2015 to December 2015 may not experience any steep upward movement. In that case, we can safely assume one point increase in CPI (IW) in alternative months from July 2015 to Dec 2015. This assumption provides increase in DA of only 2% from January 2016, which is worked out as follows

Source: gconnect

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