Minimum & Maximum Wages Submitted to 7th CPC by IRTSA

 Principles of Determination of Pay 

& 

Determination of Minimum & 

Maximum Wages 

Submitted to 

7th CENTRAL PAY COMMISSION 

Indian Railways Technical Supervisors Association 

(IRTSA) 

 M. SHANMUGAM HARCHANDAN SINGH 

Central President General Secretary 

Compiled by

K.V.RAMESH, Senior JGS/IRTSA 

 Relevant Terms of reference

 2.a) To examine, review, evolve and recommend

changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities / benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

 i. Central Government employees-industrial and non- industrial;

 2.b)To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind …….



 Article 43. Living wage, etc., for workers 



 The State shall endeavour to secure, by suitable legislation or economic organisation

or in any other way, to all workers, agricultural, industrial or otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities

and ....



. Job Evaluation 

 Scientific job evaluation methods areavailable for a fair comparison of wages.

 Difference in nature of work can well be taken care of in scientific job evaluation.

 Recommendation of 3rd CPC for adoption of Job evolution technique on experimental

basis is still not tried.

 Classification or Grading method is easier method for job evaluation.

 Proposed method for Job Evaluation

 Brief Job descriptions and details of pay scales, emoluments and other particulars be

collected for various group of Employees.

 Jobs can be broadly grouped like “Industrial”, “Non-Industrial” and “Secretarial” etc.

 These groups may be further broken up into various sub-groups like “Artisan”,

“Supervisory”, “Administrative”, “Supportive”, etc.



 Proposed method for Job Evaluation 

……. Continued 

 Separate “Grade definitions” shall be finalised for each of these Groups & sub-groups,

 Indicating, type of work, level of job difficulty, area & Span of Supervision, etc

 Maintaining horizontal parities & vertical relativities. Will results in

 better justice, better job satisfaction, greater industrial harmony leading to higher efficiency

and productivity and the time, cost and effort would definitely be worth the returns,

particularly in the long run

 Minimum Wage as per 5th CPC method

 Pay in Pay Band + Grade Pay + % DA + Compensation factor based on rise in

NNP at factor Cost.  Calculation of compensation factor



 Calculation of compensation factor 

                          Per Capita NNP at factor cost 

  Year                             At constant price               Increase over previous



year

2005-06                                  26015                               1872

2006-07                                  28067                               2052

2007-08                                  30332                               2265

2008-09                                  31754                               1422

2009-10                                  33901                                2147

2010-11                                  36342                                2441

2011-12                                  38037                                1695

2012-13                                  39168                                1131

2013-14*                                41046                                1878

2014-15*                               42924                                 1878

% Increase of NNP at factor cost on Constant

Prices for the period of ten years                                       65%

* Assumed figures as per average increase



 Proposed Minimum Pay w.e.f. - 1.1.2016

Minimum Basic Pay + DA 140%+ Compensation

Per Capita NNP at factor cost



Minimum Basic pay after VI CPC                 Rs.7000

Projected DA 140% (as on 1.1.2016)          Rs.9800

BP+DA                                                       Rs.16800

Compensation factor (65%)                         Rs.10920

Proposed Minimum Pay

or

                                                                    Rs.28000

Proposed Number of times increase of BP     3.96 



Proposed Minimum & Maximum Pay based on 

post 6th CPC formula 

EXISTING PAY			PROPOSED PAY @ 3.96 TIMES (ROUNDED OFF) OF EXISTING PAY
Minimum		Maximum	Minimum		Maximum
Pay in Pay Band	Grade Pay		Pay in Pay Band	Grade Pay
Rs.5200	Rs.1800	Rs.80,000	Rs.20,800	Rs.7200	Rs.3,20,000

Minimum Pay shall be increased from Rs.7000 to Rs.28,000.



Maximum Pay Shall be increased from Rs.80,000 to 3,20,000.



Intermediate Pays shall be fixed in the same way.



Upgradation shall be granted to specific categories on functional & other related justification. Determination of Maximum Pay First & then arriving Minimum Pay in the ratio of 9:1



 Maximum Pay shall be fixed first as per rise of NNP and then the Minimum pay in the

ratio of 9:1 thereof and the Intermediate Pays shall be fixed.



 Maximum Pay = Rs.80,000 X Compensation factor based on rise in NNP at factor Cost.

 = 80000 x 3.96 = Rs.316800 or Rs.3,20,000.



 Therefore, Minimum Pay works out to be Rs.320000 / 9 = 35555 or Rs.35500.

 Rate of Increments



 Annual Increment:- Rate of annual increment in each grade may please be

granted @ 5 per cent.



 Increment on Promotion:- During Promotion minimum 10% increase in Basic

Pay has to be granted.



 Fixation of Pay on Promotion at par with Entry Pay:- Pay on Promotion should be

fixed at least at par with Entry Pay in the Revised Pay Structure.



Thank you

Source;[http://www.irtsa.net/pdfdocs/7th_CPC_Principle_of_Pay_Determination.pdf]