Overtime Pay in 7th CPC for Defence Industrial Establishments governed by the Factories Act, 1948 – MoD Order

Government of India
Ministry of defence
(Department of Defence)
D(Civ-II)

B-Wing, Sena Bhavan,
New Delhi, the 26 February, 2018

OFFICE MEMORANDUM

Subject: Payment of overtime Allowance (OTA) in the revised pay to the employees of Defence Industrial Establishments governed by the Factories Act, 1948.

Consequent upon revision of pay structure as per VII CPC recommendations, the matter regarding payment of OTA, as per revised pay, to the employees of the Defence Industrial Establishments under the Factories Act, 1948 has been considered in consultation with the Ministry of Labour & Employment, Ministry of Finance and Ministry of Law & Justice.

2. It has been decided that the Overtime Allowance shall be paid to the employees of the Defence Industrial Establishment governed by the Factories Act, 1948 on the basis of revised wages with effect from the date the wages have been revised i.e. 1.1.2016. The OTA on the basis of revised wages is subject to the conditions stipulated in this Ministry’s OM No. 14(1)/97/D(Civ-11) dated 1st July 1998.

3. It is further added/clarified that those categories of “workers” who come within the scope of Section 64 of the Factories Act and whose basic pay exceed the wage limit, as specified in sub-section (6) of Section (1) of the Payment of Wages Act, 1936, are entitled for payment of OTA in terms of MoD OM No. 14(2)/76/D(Civ-II) dated 25.06.1983 on the basis of wage limit notionally determined. Accordingly, OTA will be paid to them on the basis of wage limit notionally determined on the basis of old pay scales until the new wage limit is defined by the Ministry of Labour & Employment based on the consumer expenditure survey published by NSSO. Thereafter, the OTA will be paid to them on the basis of new wage limit notionally determined, if the basic pay exceeds the new wage limit.

The other conditions as laid down in this Ministry’s letter No. 14(1)/97/D(Civ-II) dated 1st July. 1998 shall remain unchanged

4. This issues with the concurrence of MoD(Finance/AG/PB) vide their Dy No. 1 04/AG/PB dated 15.02.2018 and after consultation with Ministry of Labour & Employment vide their ID No. Z-16025/09/2017-ISH-II dated 13.11.2017

(Dalpat Singh)
Under Secretary to the Govt. of India
Tel. 23014675

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PC to F.No.13(3)/2016/D(Civ-II)
Government Of India
Ministry Of Defence
Department of Defence
D (Civ-II) Section

B Wing, Sena Bhawan, New Delhi
Dated, the 19th April, 2017

OFFICE MEMORANDUM

Subject: Revision of Overtime Allowance (OTA) to Employees of Defence Industrial Establishments under Factories Act, 1948 consequent to implementation of VII CPC recommendations.

The undersigned is directed to say that the issue of revision of OTA to the employees of Defence Industrial Establishments governed by Factories Act, 1948 was taken up with Ministry of Labour & Employment (MoL&E). In this connection this Ministry’s file No.13(3)/2016/D(civ-II) was referred to MoL&E on 23.02.2017. However, the views/opinions of MoL&E on the matter have not been received so far.

2. It is therefore, requested that the present status of the above issue may be intimated to this Ministry.

(Pawan Kumar)
Under Secretary to the Govt of India
Tele No.23014675

Signed Copy

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NFIR
National Federation of Indian Railwaymen
3, Chelmsford Road, New Delhi -110 055

No.IV/NFIR/7CPC(Imp)/20I6/R.B.

Dated: 30/09/2016

The Secretary (E),
Railway Board,
NewDelhi

Dear Sir,
Sub: Upgradation of Junior Accounts Assistants GP 2800 to GP 4200 in Railways : Implementation of the VII CPC recommendations (Para 11.62.15) reg.

In the Railways, the Junior Accounts Assistants are recruited from the open market through Railway Recruitment Boards. The Candidates with Graduation as qualification are required to face written examination conducted by RRBs and once short-listed, have to appear in an interview. An examination in typing skills had also been introduced in Railways. Based on the combined marks secured in both the written examination and the interview, the RRBs assign them ranlg based on which the seniority is fixed and appointments given. The RRB rank goes a long way in determining the seniority in the panel for Appendix 3 IREM qualification and also in other examinations for selections to Group B Gazetted posts.

2. The directly recruited JAAs through RRBs are compulsorily required to qualify in the Appendix 2 IREM examination for their confirmation in the posts. If they fail in the Appendix 2 Examination in two attempts, they have no choice but to quit the job as their services will be terminated.  Para 11.62.14 (iv) of IREM Vol. II

3. The VII CPC has recognized the importance of App.2 and 3 IREM examinations while dealing with the Accounts Department pay structure. The Pay Commission has stressed the direct recruitment stage with Combined Graduate Level Examination (CGLE) in its report as placed below:

Para 11.62.14 of the VII CPC report: It has been demanded that the pay scale of Auditor/Accountant may be upgraded from GP 2800 to GP 4200. It has been stated that the recruitment to the post of Auditor/Accountant is by promotion from Clerks/Typists under seniority quota, promotion under examination quota and direct recruitment through a Combined Graduate Level Examination (CGLE) conducted by the Staff Selection Commission. It has also been pointed out that their job profile demands greater audit/accounting skills which justify higher pay scale.
Under Analysis and Recommendation, the VII CPC has stated the following:

Para 11.62.15: The Commission notes the CGLE is held for recruitment for different posts in GP 2800, GP 4200 and GP 4600. This Examination consists of written examination and interview. A candidate is given the choice to appear only in the written examination or both  written examinations and interview depending upon the post for which he/she is an applicant Applicants who have to clear both the written examination as well as the interview are eligible for recruitment for posts carrying higher grade pays of GP 4200/GP 4600. Applicants who do not have to clear the interview and are selected only on the basis of written examinations are placed in GP 2800. Although Auditos/Accountants are selected through CGLE, they are selected only on the basis of written examination. The Commission, therefore, recommends replacement pay levels for Auditors/Accountants.

4. In this connection, NFIR contends that since the VI CPC has recognized the Accounts Department of Indian Railways as belonging to Organized Accounts alongside Audit & Accounts, the dispensation recommended for Audit & Accounts will have to be extended to the Accounts Department of Railways as well in the case of JAAs as their recruitment is also through CGLE-Combined Graduate Level Examination conducted by RRB (in the case of Audit & Accounts, it happens to be Staff Selection Commission and both recruitment Bodies are on similar pattern) followed by interview.

5. Therefore, the grade pay of JAAs in Railways needs to be upgraded from 2800 to 4200 pursuant to the analysis and recommendations of the VII CPC (Part 11.62.15). Consequently, since the present AAs are of GP 4200, the following structure should fall in place: JAA-4200, AA-4800, SSO(A)/Sr.TIA/Sr.ISA-5400 (It is relevant to note that GP of 4600 does not exist in the hierarchy of Accounts Department as per the Gazette Notification issued pursuant to VI CPC recommendation, while it is taken for the limited purpose of MACPS).

NFIR, therefore urges upon the Railway Board to take necessary action for upgradation of JAAs to GP 4200/Pay Matrix Level 6 and revise the pay structure of Accounts Department Cadre in Railways as proposed vide para 5 above.

Yours faithfully,
sd/-
(Dr.M.Raghavaiah)
General Secretary

Source: NFIR

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In the face of the unprecedented rise in the inflation of the Indian Economy during 2006-16, the Central Govt. employees demanded the Government to affect wage rise, for the emoluments fixed on the basis of the 6th CPC was incapable of meeting the both ends of an employee. Though under threat the then Government conceded the demand for setting up of the 7th CPC, they refused to grant any interim relief or DA merger, which alone would have mitigated the difficulties of the low paid employees.

When the NDA Government came to power, the NJCA & CCGGOO approached them also with a request that the difficulties of the low paid employees in Central Government must be appreciated and the demand for Interim Relief or DA merger be conceded. The NDA Government too did not respond to the plea made by the NJCA & CCGGOO.
The 7th CPC was to submit its report in August, 2016. However, at the intervention of the Government, the report was further delayed and it ultimately reached the Government only in November, 2015.

The report of the 7th Central pay commission was totally disappointing as it did not address any of the issues projected before them in a proper manner and most of the demands were rejected sans reasoning and logic. The increase they recommended was a paltry 14%, the lowest any Pay Commission had ever suggested.

Except setting up an Empowered Committee of Secretaries, the Government did not do anything so far on the report. It is now more than six months the report is with the Government. Normally the revised allowances which form part and parcel of the salary of the employees are granted with prospective effect i.e. from the date of the issue of the orders. The delay in taking decision on the 7th pay commission report will rob the employees of the increased allowances for ever.

The Staff side had been pursuing to have a meaningful negotiation and settlement of the issues. Except hearing the leaders of NJCA & CCGGOO, the empowered Committee did not go further. It acted as if it was powerless and the final decision will have to be taken by the Government. At the request of the Cabinet Secretary on 1st March, 2016 the strike action which was to commence in April, 2016 was deferred.

The determination of the Minimum wage on the basis of Dr. Aykhroyd formula enunciated in 1957 to which the Government of India was a party is the most significant issue. A right settlement thereon will have far reaching impact in the wage determination of the entire working class in the country. The confrontation is between the forces who wanted India to be the destination for cheap labour and others who fight against the exploitation.

The new Contributory Pension scheme introduced by the Government in 2004 has made one third of the Civil servants unsure of their entitlement at the evening of their life even though they were to contribute huge sums from their wages every month compulsorily. The PFRDA bill became an Act in the country as the members of Parliament both belonging to NDA and UPA voted in favour of the loot of the employees. Even the recommendation made by the Standing Committee of the Parliament to provide for a minimum guaranteed annuity pension was rejected when the Bill was passed. The other issue which must have a satisfactory settlement is about the contributory pension scheme.

The new pension scheme is a curse on the employees. As far as employees are concerned, they are worried that in future they may be deprived of their pension in total. They are also worried that there is no guarantee of either family pension or gratuity as per 7th pay commission recommendations. Scrap the PFRDA Act and NPS and grant Pension/family Pension to all CG employees under CCS (Pension) Rules, 1972 & Railways Pension Rules, 1993.

The one and only positive recommendation made by the 7th CPC was to provide some relief to the in the pension entitlement of the past pensioners. The Department of Pension & Pensioners’ Welfare has unfortunately recommended to the Cabinet Secretary that, even that recommendation must be rejected on the specious plea that the requisite relevant records might not be available.

The central government employees are very much annoyed and anxious with the 7th pay commission recommendations. As there had been no fruitful negotiations or discussions and having realized that the Government has no intention to settle the Charter of demands, the NJCA & CCGGOO have served strike notices. The indefinite strike will commence on 11th July, 2016, if no satisfactory settlement is brought about on the charter of demands. Prime Minister should intervene immediately for improvement of VII CPC recommendations and revision of Central Govt. employees wages.

Source-http://aidrdotoa.blogspot.in/

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In addition to the various genuine demands raised by the various Central Government Employees Federations/Associations with the Empowered Committee of Secretaries, I would like them to bring these 2 important crucial issues before the Empowered Committee of Secretaries for implementation:

1. RETENTION OF 3% INCREMENT IN VII CPC RECOMMENDATIONS IN CASE OF PROMOTION LEADS TO LOWER FINANCIAL BENEFITS BY FEW THOUSANDS THAN THE EXISTING BENEFITS UNDER 6TH CPC RECOMMENDATIONS:

The financial benefit would be much lower than what a government servant would be getting under VI CPC recommendation on promotion, because the existing benefit on promotion carry change in grade pay apart from 3% increase in Pay+Grade Pay. The following illustration shall show the huge difference:

Suppose an employee whose Pay is Rs.10400/- and the Grade pay is Rs. 2800/- totalling to Rs.13200(in the Pay band of 5200-20200), gets his next promotion to the Grade Pay of Rs.4200/- he will be entitled to the following hike in total remuneration under the existing VI CPC recommendation as a result of promotion:

Rs.13200 x 3% increment =Rs.400
Difference in Grade Pay from Rs.2800 to Rs.4200= Rs.1400
Total increase of increment in basic pay and Grade Pay= Rs.1800
D.A. at 125% as on 1/1/2016 on Rs.1800 = Rs.2250
HRA at 30%(assuming X city) on Rs.1800 =Rs.540
Total monetary benefit = Rs.4590/-

Whereas the net monetary benefit under VII CPC recommendation, as a result of promotion in the above case will be much lower than the above illustration as shown under:

Equivalent Basic Pay for Rs.13200 come to Rs.33900 as per pay matrix
Rs.33900 x 3% increment =Rs.1017(placed at Rs.35,400 as per pay matrix in the next level)
Total difference Rs.35400 – Rs33900 =1500
D.A. at 0% as on 1/1/2016 on Rs.1500= 0
HRA at 24%(assuming X city) on Rs.1500 =Rs.360

Total monetary benefit = Rs.1860/-only as against the existing Rs.4590/- leading to shortage of Rs. 2730/-
This is a big blunder committed by the VII Pay commission.
Therefore the increment on promotion should be atleast 5 to 6% to bring the benefit of increment on promotion to the existing level.

Whether increase of percentage for annual increment is considered or not, but increment of percentage for promotions definitely need to be implemented to bring the level of monetary benefit to the existing level.

2. NON RECOMMENDATION OF VII CPC REGARDING MERGER OF 50% OF D.A. WITH BASIC PAY WHEN D.A. CROSSES 50% IS A GREAT DISAPPOINTMENT:

The long standing demand of the central government employees for merger of 50% D.A with basic was not implemented by the government on the excuse that the VI CPC had not made such a proposal. Even the VII CPC is totally silent about this aspect. It appears no one has demanded the same before the VII CPC for consideration.

It is quite surprising that such a vital issue of non-recommendation of merger of D.A with basic pay when D.A crosses 50% is not being opposed by any central government associations or pointed out by the media. Had it been recommended by the VII CPC, the government shall definitely implement the same and the benefit of hike in salary as a result of merger of D.A with basic when it cross 50%, would be so vast that no government servant would crave for timely setting up of next VIII Central Pay commission.

M.DORAI

Via: govtempdiary

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