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Increase of fitment factor under 7th Pay Commission

Increase of fitment factor from 2.57 to 3.68 under 7th CPC?

Is Government Contemplating to Increase Fitment Factor from 2.57 to 3.68 under 7th CPC? – Parliament Q&A

Increase of fitment factor under 7th CPC

RAJYA SABHA

UNSTARRED QUESTION NO-2273

ANSWERED ON-07.08.2018

Shri Ravi Prakash Verma

Shri Neeraj Shekhar

(a) whether Government is contemplating to increase fitment factor from 2.57 to 3.68 under 7th CPC to all pay levels, as demanded by employees associations;

(b) if so, the details thereof and by when it would be announced; and

(c) if not, the reasons for betrayal from assurances given by Home Minister and Railway Minister etc. to employees associations in 2016?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI P. RADHAKRISHNAN)

(a) to (c): The Minimum Pay of Rs. 18,000 p.m. and Fitment Factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration.

Authority: https://rajyasabha.nic.in/'

Also read: Minimum Pay increased to 21000 – No Scope Anymore to Continue this Story

Also read: 7th CPC Minimum Wage and Fitment Formula – NJCA meeting on 3.7.2018

Productivity Linked Pay Hike to Deserving CG Employees

“Whether the last Pay Commission has suggested productivity linked pay hike to the deserving employees to eliminate below average or mediocre performance…?”

No Alternative for Increasing the Salaries and Allowances of Central Government Employees and pensioners

Whether the Government is considering an alternative for increasing the salaries and allowances of Central Government employees and pensioners in future instead of forming Pay Commission…?

The Minister of State for Finance Shri P.Radhakrishnan said as reply in the Parliament to the questions on 27th July 2018 as follows…

(a) whether the reports of successive Pay Commissions have been increasing the burden on Government finances/exchequer in partially accepting their recommendations for increase in wages and if so, the details thereof?

The financial impact of the recommendations of the Central Pay Commission, as accepted by the Government, is normally pronounced in the initial year and gradually it tapers off as the growth in the economy picks up and fiscal space is widened. While implementing the recommendations of the last Central Pay Commission, i.e., the Seventh Central Pay Commission, the Government staggered its implementation in two financial years. While the recommendations on pay and pension were implemented with effect from 01.01.2016, the recommendations in respect of allowances after an examination by a Committee have been implemented with effect from 01.07.2017. This has moderated the financial impact of the recommendations. Moreover, unlike the previous 6th Pay Commission, which entailed substantial impact on account of arrears, the impact in the year 2016-17 on account of element of arrears of revised pay and pension on the present occasion of the 7th Central Pay Commission pertained to only 2 months of the previous financial year of 2015-16.

(b) whether the last Pay Commission has suggested productivity linked pay hike to the deserving employees to eliminate below average or mediocre performance and if so, the details thereof?

The Seventh Central Pay Commission in Para 5.1.46 of its Report proposed withholding of annual increment in the case of those employees who are not able to meet the benchmark either for Modified Assured Career Progression (MACP) or regular promotion within the first 20 years of their service.

(c) whether such periodic hikes in wages resulting from Pay Commission recommendations trigger similar demands from the State Government/public utility employees, imposing burden on already strained State finances and if so, the details thereof?

The service conditions of employees of State Governments fall within the exclusive domain of the respective State Governments who are federally independent of the Central Government. Therefore, the concerned State Governments have to independently take a view in the matter.

(d) whether the Government is considering an alternative for increasing the salaries and allowances of Central Government employees and pensioners in future instead of forming Pay Commission and if so, the details thereof?

No such proposal is under consideration of the Government.

Source: https://90paisa.blogspot.com

Central Govt should increase Minimum Pay and Fitment formula – Karnataka COC

Revision of Minimum Pay and Fitment formula due to increased revenue collections of the Central Government

Comrades,

Today none of the 7th CPC related demands of Central Government Employees are settled. The assurance given by the Group of Ministers to the NJCA leaders regarding increase in Minimum Pay and Fitment formula is in paper even after a lapse of 20 months. Now the Finance Minister has replied in Parliament that “no change in Minimum Pay and Fitment formula is at present under consideration”.

To avert the 11th July CG employees strike the Hon’ble Prime Minster had instructed the group of Hon’ble Ministers including Shri Rajnath Singhji, Hon’ble Home Minister, Shri Suresh Prabhuji , Hon’ble Railway Minister and Shri Arun Jaitelyji , Hon’ble Finance Minister to hold discussions with the Staff Side (JCM) on 30th June 2016 and the Shri Arun Jaitelyji , Hon’ble Finance Minister had published a written assurances in the Government website on 6th July 2016 leading to deferment of the strike .

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.

Our demand of revision of Minimum Pay and Fitment formula is quite justified.

Comparison of earlier wage hike we can observe that the fitment factor of 2.57 times is the lowest comparing to other pay commissions. If we make a study of earlier pay commission.

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

Many of the State Governments are following the Central Government pay scales, but a few state Governments have improved upon the Central Government pay scales. The examples are as under:

The financial position of the Central Government is very good. Even the GDP (Gross Domestic Product) has shown increase in last few years which is around 7% , the Indian economy is fastest growing and placed 7th in the world ( which is at 2,250.987 billions of $ ), comparing to wages paid in the world our wages are at lower level. The Government fiscal budget deficit equal to 3.50 percent of the country’s Gross Domestic Product in 2016. Compared to 2008 where the fiscal deficit was at 7.8 %, but today the fiscal deficit is contained at 3.5%. This is also a healthy sign of the economic status of the Central Government financial status, the budget fiscal deficit is always below 4%.

Direct tax collections in 2017-18 at Rs 9.95 lakh crore, exceeded the revised budgetary target of Rs 9.8 lakh crore. Also, 6.84 crore income tax returns filed in the year against 5.43 crore in the previous year signalling a rise of 26 % . A net of 99.5 lakh new assesses were added to the tax net.

Net collection from corporate tax went up 17.1 per cent while that from personal income tax rose 18.9 %.

The revenue collection from Goods and Services Tax (GST) exceeded Rs 1 lakh crore in April 2018, GST revenue collected in April 2018 came at Rs 1,03,458 crore.

With the improved economic climate, introduction of e-way bill and improved GST compliance, GST collections would continue to show a positive trend.

The wage bill of the Central Government on in its employees is less than 10% or 3.4% of the GDP, which is less compared to various countries world wide .

Vacancy of the Central Government is about 15 % , more than 4 lakhs vacancies are existing in the Central Government the work load is being carried out by the existing employees. The Government being a model employer should pay for its employees and motivate them to work more for implementation of its policies.

Hence due to the improved revenue earning of the Central Government, as assured to the staff side JCM by the Group of Ministers in respect of increase of Minimum Pay and Fitment formula, the Central Government should increase the Minimum Pay and Fitment formula.

7th CPC Minimum Pay and Fitment Factor: Confederation writes to NJCA

Dated – 14.03.2018

As you may be aware the Govt. of India, Ministry of Finance, has given the following written reply in Parliament for a question asked to Minister of Finance, regarding our demand – “Increase in Minimum Pay and Fitment Formula”.

Reply given by Minister of state for Finance:

“The minimum pay of Rs.18000/- p.m. and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration”.

From the above it is crystal clear that Govt. has gone back from the assurance given on 30.06.2016 by Group of Ministers including Sri Rajnath Singh, Home Minister, Shri Arun Jaitley, Finance Minister and Shri Suresh Prabhan, then Railway Minister, that Minimum Pay and Fitment formula will be increased and for that purpose a High Level Committee will be appointed to submit report within four months.

Now that Govt. has gone back from its assurance, I on behalf of Confederation of Central Govt. Employees & Workers, which is a constituent organisation of NJCA, request you revive our deferred agitational programmes immediately and for that purpose, if necessary, an urgent meeting of the NJCA may be convened.

Yours fraternally,

(M. Krishnan)

Secretary General

Mob: 0944768125

Email: mkrishnan6854@gmail.com

Increase in 7th CPC Minimum Pay and Fitment Factor – Rajya Sabha Q&A

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

RAJYA SABHA

UNSTARRED QUESTION NO-1170

(a) whether Government is actively contemplating to increase minimum pay from Rs.18,000/- to Rs.21,000/- and fitment factor from 2.57 to 3, in view of resentment among Central Government employees over historically lowest increase in pay by 7th Central Pay Commission (CPC);

(b) if so, the details thereof and the date from which it would be implemented; and

(c ) if not, the reasons for the callous attitude of Government towards Government Employees?

ANSWER

MINISTER OF STATE FOR FINANCE ( SHRI P RADHAKRISHNAN )

(a),(b)&(c ): The minimum pay of Rs.18,000/- p.m. and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration.

 Defence Pay Matrix enhanced from 2.57 to 2.67 for level 12A & 13

“Index of rationalization (IOR) of level 12A & 13 of the Defence Pay Matrix has been enhanced from 2.57 to 2.67 for the entry level Pay…”

Message Regarding 7 CPC

1. “GoI, MoD has extended sanction of Operation Rhino for a further period of 3 months with effect from 15/06/2017 to 14/09/2017 or till the termination of Op Rhino whichever is earlier”. Units may publish Part II orders accordingly.

2. “Govt orders have been received vide SRO No 17(E) dated 06/07/2017 notified in Gazette of India No 14 dated 07/07/2017 and acted upon in Aug 2017. As per the orders, index of rationalization (IOR) of level 12A & 13 of the Defence Pay Matrix has been enhanced from 2.57 to 2.67 for the entry level Pay but the multiplication factor is retained as 2.57. In some cases pay fixed on 01/01/2016 as per revised Pay matrix would be less than that fixed earlier as per SRO 12(E) dated 03/05/2017, leading to recovery in August 2017 pay account. A few examples are cited at