Confederation Of Central Government

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CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES AND WORKERS 31 Ferose shaw Road, New Delhi,. 110 001.

Phone: 65903935 Fax: 011 2510 5324 President: Working President. Secretary General:

Com.S.K. Vyas: Com.C.C. Pillai: Com.K.K.N.Kutty

9868244035 9811213808 9811048303 Dated: 28th December, 2006

The Chairman Sixth Central Pay Commission 2nd Floor,ICADR Building Plot No. 6 Vasanthkunj Institutional Area Post Bag No. 1 Vasnathkunj Post Office New Delhi. 110 070. Dear Sir, We submit herewith our Memorandum to the VI Central Pay Commission on behalf of the non-gazetted employees of various Ministries/Department of Govt. of India whose Federations, Unions, Associations are affiliated to this Confederation. We have already sent this Memorandum to your Office through e-mail. Being part of the Staff Side of the JCM National Council, we have adopted and endorsed the formulations and proposals made by the Staff Side in their Memorandum. The same forms part of our memorandum. On certain issues which are not covered in the memorandum of the Staff Side, we have submitted our formulations and proposals in Part-II of this memorandum. We shall be grateful if an opportunity is granted to us to present our case before the Commission on the issues covered herein. Thanking you, Yours faithfully, K.K.N. Kutty Secretary General.

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INDEX Part I Chapter No.

Name of the Chapter

Page No.

I II III IV V VI VII VIII IX X

Background Employment under Central Govt. State of the economy and financial resources Principles of determination of pay Proposed pay structure Allowances Women employees Special duty allowance Miscellaneous Extraneous matters Part II

3-4 5-11 12-18 19-26 27-28 29-46 47-48 49-50 51-55 56-57

I II III IV V VI VII VIII IX X XI XII XIII

Group D Staff Office Staff in non Sectt. organisations Stenographers Other common categories Care takers Staff Car Drivers Electronic Data Processing Staff Canteen employees Cash handling allowance Leave entitlement Assured career progression Transfer policy Canteen facilities Annexure

58-60 61-63 64-65 66 67-68 69 70 71 72 73 74-75 76-78 79 80-86

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PART - I Chapter I Background: The 6th Central Pay Commission was set up on 5th October, 2006, i.e., approximately 13 years after the 5th CPC was set up. The recommendations of the last three Pay Commissions to set up a Permanent Wage Body with Constitutional Status and authority were not found acceptable by the government. The 5th CPC, therefore, as an alternative, had recommended for decennial revision of Wages in a time-bound manner. The relevant recommendation of the 5th CPC as contained in Para 171.12 is reproduced below: “In case for any reason Government finds itself unable to set up a permanent pay body, it should at least concede the right of Central Government employees to have a complete pay revision once in 10 years. This would mean that if the date of implementation of the Fifth Pay Commission is 1.1.96, the date of implementation of the Sixth Pay Commission should be pre-determined as 1.1.2006 irrespective of when the next Pay Commission is actually appointed. However, the Government should also take note of the fact that it generally takes a Pay Commission a period of about three years to complete its deliberations and therefore, the next Pay Commission should be appointed latest by 1.1.2003, so that its report becomes available by 1.1.2006. 1.2

Accordingly, the Staff Side of the JCM had raised the demand for setting up 6 th

Central Pay Commission in the year 2003 itself in the forum of National Council of JCM. The Govt. initially expressed their inability to consider this demand on the plea of financial stringency. Later, stating that the employees were being granted 100% neutralization of the rise in price in the form of DA and 50% of such compensation had been merged with Pay for the purposes of all allowances including D.A., the Govt. rejected the demand for another Pay Commission, thus making the intent of an impending wage freeze loud and clear. 1.3

In this background the organizations participating in the JCM met in a convention

at New Delhi on 17.2.2005, finalized a 20 point charter of demands, (which inter alia included the demand for setting up the 6th Central Pay Commission)

adopted a

declaration indicating unambiguously their intention to resist the unjustifiable stand of

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4 the Govt. and set up a Joint Council of Action to spearhead the movement to its logical end. Despite the sober pleadings and united and democratic action programmes, the JCA could not elicit any positive response from the Government. In the face of the inflexible attitude of the Govt. the JCA had to perforce call upon its constituents to prepare for an inevitable strike action to commence from 1.3.2006. Informal discussions were held with the Secretary Personnel and later with the Cabinet Secretary but the stalemate continued, for no assurance was held out to set up the 6th CPC. The JCA along with the constituent organizations served the strike notice on 7th Feb.2006. The Prime Minister indicated the Government’s willingness to set up the 6th CPC in a Press Conference, which paved the way for a meaningful negotiation on 15.2.2006. Agreement was reached and the strike action was averted. However, it took about 9 months for the Government to ultimately issue the notification setting up the 6th Central Pay Commission. 1.4

In this background, we heartily welcome the Commission.

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5 Chapter II. Employment under Central Govt. As on 1st March 1995, the number of civilian employees in Central Govt. was 38.92 lakhs against the sanctioned strength of 42.18 lakhs of which 41% was in Railways, 13% in Defence, 18% in the Postal and Telecommunications, 14% in the Ministry of Home affairs (mostly comprising of Para-military Forces) and the rest 14% in other Ministries and the Indian Audit and Accounts Department. The number of men in position came down to 30.88 lakhs (as against the Sanctioned strength being 35.59 lakhs) in 2005. [see Table 2.1]. Table-2.1 Statement showing Sanctioned Posts and Men in position department-wise Year

Raialway Defence

P&T

1 1995-96

2 17.1 15.9 17.0 15.0 15.6 14.5 15.1 14.0 16.8 15.8 15.6 15.5 16.3 15.1 16.3 14.8 16.2 14.5 16.0 14.3

7.5 7.2 7.5 7.3 8.6 7.9 7.7 7.1 7.7 7.1 3.0 2.8 2.9 2.7 2.8 2.6 2.3 1.9 2.3 1.9

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

3 5.9 5.1 5.9 5.1 5.8 5.0 5.8 5.0 5.8 5.0 5.8 5.0 4.7 3.5 4.7 3.5 4.7 3.5 4.7 3.5

Other Deptts.

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5 6.0 5.4 6.1 5.5 6.0 5.3 6.0 5.3 5.3 4.7 5.2 4.7 5.1 4.5 5.1 4.5 5.2 4.5 5.1 4.4

Home Total Affairs Sanctioned strength 6 7 5.7 4217932 5.4 5.9 4218194 5.4 5.9 4192735 5.7 6.0 4067049 5.7 6.1 4172031 5.8 6.4 3606482 6.1 7.3 3633006 6.9 7.3 3620183 6.9 7.2 3560433 6.9 7.5 3559831 6.8

Total Men in Position 8 3892778 3894948 3847049 3729274 3855316 3426018 3289849 3236503 3128134 3088009

Figures in columns 2 to 6 are in lakhs rounded to one decimal point and actual figures given in Column 7 & 8 representing total figures. Figures given in second line represent men in position in each year.

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The percentage decrease of man power over the years had been 10.6% in Railways, 31.4% in Defence, 73.6% in P&T (the high percentage being on account of Corporatisation of Telecom Dept. into MTNL & BSNL) and 18.5% in other employing Ministries. There had been a net increase of 25.9% in the case of Home Ministry mainly accounted for by the rise in the Para-military personnel from Rs.5.4 lakhs in 1996 to 6.8 lakhs in 2005. There had been net decrease of 20.6% in the total number of Central Govt. employees between 1996 and 2005. The Men in position came down from 38.9 lakhs in 1996 to 30.9 lakhs in 2005 [Table 2.2]. Table-2.2 Departments A. Industrial/Productive Operative posts

Percentage decrease in 2005 over 1996 6.4 10.6

S/S 17.1 W/S 15.9

16.0 14.3

Defence

S/S 5.9 W/S 5.1

4.7 3.5

20.3 31.4

Posts/Telecom

S/S W/S S/ S W/S S/S W/S

2.3 1.9 23.0 19.7 7.5 6.0

69.3 73.6 24.6 43.1 31.6 25.9

5.1 4.4

15.0 18.5

35.6 30.9

15.6 20.6

C. OTHER DEPTTS.

ADMINISTRATIVE Grand Total

S/S : Sanctioned strength:

2.2

2005

Railways

Total Industrial/ Operative Staff. B. Home Affairs-Police Para-Military Forces

D.

1996

7.5 7.2 30.5 28.2 5.7 5.4

S/S 6.0 W/S 5.4 S/S W/S

42.2 38.9

Remarks (in lakhs)

Decreases

Increase Decrease

Decrease

W/S : working strength.

The administrative staff including the professional, technical, scientific, executive

and clerical categories remained at 15%, both in 1996 and 2005. The para-military 6

7 personnel had a leap from 13% to 21% in 2005, by virtue of which the production process workers (the industrial workers in Railways and Defence and operational workers in post and telecom) went down to 64% in 2005 from 72% in 1996. If the the paramilitary personnel are treated as operational staff, the percentage of industrial workers in the central Govt. continues unchanged at 85% in 2005 also. Thus, it could be seen that large majority of the Central govt. employees are engaged in production work and only a small segment is engaged in what may be called the Civil Service contrary to the general image perpetuated by the media and other vested interest. The sharp decrease in the civilian employment was brought about through various methodologies enunciated by the Expenditure Reforms Commission, viz., Corporatisation (as in the case of the Telecom Department), privatization of various governmental functions; closure; outsourcing, contractorization etc.. Besides, a virtual ban on recruitment was imposed in 2001 through an executive fiat by virtue of which the departments were compelled to abolish two-third vacancies in order to get the sanction for filling up1/3rd vacancies. 2.3

While there had been a net reduction of more than 6 lakhs civilian posts during

the period between 1999-00 to 2004-05, i.e., after the Expenditure Reforms Commission submitted its report, the sanctioned strength for Group-A registered an increase. The posts lying vacant on account of the blanket ban imposed in 2001 works out to about 5 lakhs (471822 to be extract). [Table 2.3]. Table-2.3 Group A. B. B (Non-Gazetted) C. D. Unclassified. TOTAL

YEARS 1999-2000 2004-05 1. As per Sanctioned Strength 87,883 88,319 1,26,854 73,375 90,119 1,05,904 2,16,973 1,79,279 26,53,291 23,17,238 11,90,123 9,60,665 23,761 14,330 41,72,031 35,59,831

Increase (+) Decrease (-) (+) (-) (+) (-) (-) (-) (-)

436 53,479 15,785 37,694 3,36,053 2,29,458 9,431 6,12,200

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A. B. B (Non-Gazetted) C. D. Unclassified. TOTAL 2.4

2. Incumbants –in-Position 78,250 74,954 1,14,230 67,130 80,853 91,149 24,34,244 11,25,732 21,999 138,55,316

19,94,449 8,47,950 12,369 30,88,009

(-) (-) (+)

3,304 47,092 10,296

(-) (-) (-)

4,39,795 2,77,782 9,630 7,67,307

The tables 2.3 indicate the reflection of various downsizing measures undertaken

by the government group-wise during the period between 1999-00 to 2004-05. There had been no reduction in the sanctioned strength of Group A posts at all. where as the GroupB & C, the reduction had been of the order of 13% and in the case of Group-D at 20% and in the Unclassified category as high as 40%. Table 2.4 to 2.9 indicate the reduction in the sanctioned strength as also men in position over the period between 1995-96 to 200405 . Table-2.4 Statement showing sanctioned strength, men in position, vacancies and percentage of vacancies to the sanctioned strength in Group A.

Year Sanctioned .Strength Men in position 1995-96 89262 76891 1996-97 90841 77802 1997-98 89992 76647 1998-99 90029 76734 1999-00 87883 78258 2000-01 80285 71739 2001-02 82184 71649 2002-03 82692 70956 2003-04 84004 72071 2004-05 88319 74954 Post abolished in 10 years = 89262 -88319= 943 = 1.05% Reduction in men position = 76891 – 74954 = 1937.

vacancies 12371 13021 13345 13295 9625 8546 10535 11736 11933 13365

percentage 13.86 14.33 14.83 14.77 10.95 10.65 12.82 14.19 14.21 15.13

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9 Table-2.5 Statement showing sanctioned strength, men in position, vacancies and percentage of vacancies to the sanctioned strength in Group-B. Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Sanctioned Strength 95652 96766 103823 100927 126854 73091 73266 74294 76765 73375

Men in Position

Vacancies

86694 87673 92227 89736 114230 65602 66564 67341 70157 67138

8958 9093 11596 11191 12624 7489 6702 6953 6608 6237

Percentage of vacancies 9.77 9.40 11.17 11.09 9.95 10.25 9.15 9.36 8.61 8.5

Post abolished in 10 years = 95652-73375=22277 = 23.28% Reduction in Men in position 86694 – 67138 = 19556 Table-2.6 Statement showing sanctioned strength, men in position, vacancies and percentage of vacancies to the sanctioned strength in Group-B (Non-Gazetted). Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Sanctioned Strength 93166 96501 91655 92388 90119 90467 100413 97600 102378 105904

Men in Position

Vacancies

87203 87975 82888 83535 80853 83401 89927 85806 89499 91149

7963 8526 8767 8853 9266 7066 10486 11794 12879 14755

Percentage of vacancies 8.55 8.84 9.57 9.58 10.28 7.81 10.44 12.08 12.57 13.93

Increased in Sanctioned Strength: 93166 – 105904 = + 12738 = 13.7 Increase in Men in position = 91149 – 87203 = 3946. Note: This is due to change in classification. Some post in Group C were converted into Gr. B (Non-gazetted).

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10 Table-2.7 Statement showing sanctioned strength, man in position, vacancies and percentage of vacancies to the sanctioned strength in Group-C. Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Sanctioned Strength 2674836 2673046 2616388 2561324 2653291 2307367 2331602 2332070 2289665 2317238


Men in Position

Vacancies

2476146 2476927 2435341 2355118 2434244 2182705 2109346 2079861 2000617 1994449

198690 196119 211047 206206 219047 124662 222256 252209 289048 322789

Percentage of vacancies 7.42 7.33 7.97 8.05 8.26 5.40 9.53 10.81 12.62 13.93

2674836 – 2317238 =357598=13.36% 2476146 – 1994449 =481697 Table-2.8

Statement showing sanctioned strength, man in position, vacancies and percentage of vacancies to the sanctioned strength in Group-D Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Sanctioned Strength 1237682 1233813 1233232 1193824 1190123 1036934 1027323 1014950 989044 960665

Men in Position

Vacancies

1142788 1139650 1134702 1098080 1125732 1005529 939530 916185 879436 847950

94894 94163 98530 95744 64391 31405 87793 98765 109608 112715

Percentage of vacancies 7.66 7.63 7.99 8.02 5.41 3.03 8.55 9.73 11.08 11.73

Post abolished in 10 years =1237682 – 960665= 277017=22.38% Reduction in Man in position= 1142788 – 847950=294838

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11 Table-2.9 Statement showing sanctioned strength, man in position, vacancies and percentage of vacancies to the sanctioned strength in Unclassified. Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Sanctioned Strength 25334 27227 27615 28557 23761 18338 18218 18577 18577 14330

Men in Position

Vacancies

23056 24903 25244 26071 21999 17042 12833 16354 16354 12369

2278 2324 2401 2486 1762 1296 5385 2223 2223 1961

Percentage of vacancies 9.38 8.53 8.69 8.71 7.42 7.07 29.56 11.97 11.97 13.68

Post abolished in 10 years = 25334 – 14330 = 11004=43.43% Reduction in Men in position= 23056 – 12369 = 10687 2.5

The drastic and arbitrary exercise of downsizing with a single minded objective of

manpower reduction without resort to any scientific analysis or study of the functional needs of an organization brought about a highly distorted composition of civil service today. Not only it overburdened the workers at lower levels beyond the limit of tolerance, it also impacted adversely the efficacy and efficiency of all Govt. departments. This naturally projected a very poor image of the governmental organization in general and its Capacity to face the challenges and tasks in the changing situation in particular. The Commission, in our opinion, must therefore, recommend to reverse this ill- advised process of downsizing in the national interest.

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Chapter III State of the Economy and Financial Resources of the Government : The terms of reference require the 6th CPC, inter-alia, to make recommendations with reference to the economic conditions in the country, the need to observe fiscal prudence in the management of the economy, the resources of the Central Govt. and the demands thereon on account of economic and social development, defence, natural security…….etc. 3.2

In our opinion, the term “resources” should be construed not merely the actual

resources the Govt. raises presently, but should also include the potential resources, which the Govt. is capable of raising. 3.3

While presenting the Budget for the Year 2006-07, the Finance Minister in his

Budget speech presented a very rosy picture of the country stating that : “The final report card on the first year of the UPA Government is out, and there are reasons to celebrate. According to the Central Statistical Organisation (CSO), the growth rate in 2004-05 was 7.5 percent, with the manufacturing sector growing at 8.1 per cent. More importantly, at current market prices, gross domestic saving increased to 29.1 percent of GDP. I have no doubt in my mind that these results were due to the political message conveyed by the National Common Minimum Programme (NCMP); the perceptive leadership of the Prime Minister, Dr. Manmohan Singh; the policy changes made by the Government; and the palpable confidence of the Indian people that their future is in safe hands. I am happy to report that the prospects for 2005-06 are just as good, if not better.” 3.4

The same opinion was also reflected in the general review of the macro-economic

overview presented in the Economic Survey of the Govt. for the year 2005-06 in the following words : “In a robust demonstration of its nascent strengths, the Indian economy, after growing at 8.5 per cent and 7.5 per cent in the two previous years, is projected to 12

13 grow at 8.1 per cent in the current year 2005-06. Growth of Gross Domestic Product (GDP) at constant prices in excess of 8.0 per cent has been achieved by the economy in only five years of recorded history, and two out of these five are in the last three years……Some significant dimensions of the dynamic growth in recent years are : a new industrial resurgence; a pick up in investment; modest inflation in spite of spiraling global crude prices; rapid growth in exports and imports with a widening of the current account deficit; laying of some institutional foundations for faster development of physical infrastructure; progress in fiscal consolidation…….” 3.5

The same view got echoed in Para 1 of the write up captioned “Towards Faster

and More Inclusive Growth – An Approach to the Eleventh five year plan” published by the Planning Commission in November 2006; which reads as follows : “On the eve of the 11th Plan our economy is in a much stronger position than it was a few years ago. After slowing down to an average growth rate of about 5.5% in the 9th Plan Period (1997-98 to 2001-02), it has accelerated significantly in recent years. The average growth rate in the last four years of 10th Plan period (2003-04 to 2006-07) is likely to be a little over 8%, making the growth rate for the entire 10th Plan period 7.2%. This is below the 10th Plan target of 8%, but it is the highest growth rate achieved in any plan period.” 3.6

The Govt. has no doubt projected a very healthy image of the economy; a steady

growth rate of the economy @8.5% and 7.5% in previous years, poised to grow @ 8.1% in the current year 2005-06; the growth of GDP at 8% rapid growth in exports, progress in fiscal consolidation etc.. 3.7

The following economic scenario was projected in the economic review 2005-06

presented to Parliament in Feb. 2006 : (i) (ii) (iii) (iv) (v) (vi)

Foreign currency assets were increased from 51049 Million US $ in 200102 to 135571 Million US $ in 2004-05. Exports have increased by a whopping 84% in dollar terms between 200102 to 2004-05(43827 Billion $ to 80540 Billion $). Imports also got increased from 51413 B.$ to 109173 B$ during the Said period by 112%. GDP at factor cost (at constant prices) in 2000-01 was at 1978055 (Year in 2001-02 stood at 2393671 crores in 2004-05. The industrial production rose from 167.0 in 2001-02 to 204.8 in 2004-05 The revenue receipts which was Rs.110.130 crores in 1995-96 became Rs.351,200 Cr. in 2005-06 registering an increase of 219%

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14 (vii)

3.8

The direct taxes GDP ratio increased from 2.8% in 1995-96 to 5.0% in 2005-06 inspite of the fact that there had been a net decline in indirect taxes for the same period.

Reform of the personal income taxation was initiated in 1991-92 with the

maximum marginal rate of Income Tax reduced to 30% simultaneously abolishing the wealth tax on all productive (financial) assets. Corporate tax accounted for 63% of direct tax collection which is the trend in the developing countries and contrary to the situation in developed countries. The direct tax collection in 2004-05 was Rs.131,918 and the indirect taxes was at Rs.170398 crores. 3.9

The 5th Central Pay Commission made a general survey of the country`s economic

situation in the initial years of the reform era, some of their observations are worth noting. In Para34.6 and 34.9, 34.15 and 35.14 the Commission observed that -34.6: “We observe that India recorded one of the fastest recoveries from a macroeconomic and balance of payments crisis. The growth achieved is spectacular even by international standards. A look at the rate of growth of Gross Domestic Product at factor cost and constant prices shows a jump from 0.8% in 1991-92 to 7% in 1995-96 (See Annexe 34.1). As against the earlier years when increases of this magnitude were largely explained by high rates of growth in agriculture, the improvement since 1994-95 is being attributed to the remarkable development of industry.” 34.9:”The economic reforms also led to a marked and favourable turnaround in the performance of the external sector since the crisis of 1991. The key indicators regarding the country`s position are summarized at Annexe 34.2. We observe the following trends: (i) A strong and sustained recovery in export is observed with the rate of growth of exports in dollar terms moving up dramatically from 1.1% in 1991-92 to 20.8% in 1995-96. (ii) The ratio of exports to imports has moved within the rage of 85 to 90% in recent years, compared to a mere 60% in the later half of the 80s. (iii)There has been a substantial decline in the current account deficit as a proportion of GDP from over 3% in 1990-91 to more manageable levels in recent years.”

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15 34.15: “The sum and substance of the preceding analysis is that we no longer stand on the brink of a macro-economic disaster as we did in 1991. Our industrial growth is buoyant and so is GDP. We have made some dent in the problems of poverty and unemployment. Inflation is largely under control. Exports are doing very well and our foreign currency reserves are comfortable. No doubt, there are areas where we should do better, as in the field of agriculture, social services and infrastructural development. 35.14 “It is true that the Government is facing a difficult budgetary situation. There is need to prune the fiscal deficit as also to keep the rate of inflation at a reasonable level. At the same time, lack of resources cannot be cited as an unalterable reason by denying the employees their due. Government itself is partly to blame by its act of lifting the lid off private sector emoluments. It has also not shown circumspection while approving wage revisions in the Public Sector probably due to pressure of employees` unions. In the case of certain highwage islands like airline pilots, Government has gone berserk. With this unenviable record, it can hardly preach abstinence and forbearance to its employees.” 3.10

We have in the preceding Paras made a sincere endeavour to underline the reality

of the economic situation based on the facts and figures contained in various Govt. documents. It is discernible that the neo-liberal policies has improved the position of the rich, giving way to Consumerism, speculative dealings in Shares and Securities and in the real estate. On the other hand, it has also led to rise in unemployment, lack of job security, planned phasing out of public distribution system, and privatization of social infrastructural

facilities;

spiraling

prices

of

essential

commodities,

shedding

Governmental functions in the name of downsizing, outsourcing etc. Caught in between, the Central Govt. employees, especially in the lower strata of the service are in a precarious condition, demanding the governmental intervention for their amelioration. 3.11

While allowing for certain distinctively negative features in the economic

scenario, we certainly feel that the Govt. can mobilize sufficient resources to meet the reasonable aspirations of the Govt. employees even without compromising any of the outgoing or planned development projects. There is no denying the fact that the social welfare activities for the downtrodden people of the country should take a front seat so far as the Govt.`s priorities are concerned, but the Govt. employees should not be chosen exclusively to bear the brunt.

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16 3.12

From the table appended below it could be seen that the revenue receipts of the

Govt. had been progressively increasing over the year, whereas the percentage of wages and salaries both with reference to rev.-receipts and rev. expenditure had been declining. Table IV.1 Revenue Budget Wages Bill as % of Years

Total Rev. Receipts

Total Rev. Expenditure

Wages & Salary Bill Amount Value

Wage Bill as % of Revenue Receipt

Wage Bill as % of Revenue Expenditure

1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06RE 2006-07RE

66,047 74,128 75,453 91,083 110130 126279 133901 149510 181513 192624 201449 231748 263878 306013 348474 403465

82,308 92,702 108169 122112 139860 158988 180350 217419 249109 277858 301611 339627 362140 384351 440295 488192

10,744 13,397 14585 15721 18023 20396 27430 31560 33978 33986 31407 33317 34554 38653 40047 41774

16.3 18.1 19.3 17.3 16.4 15.6 20.5 21.1 18.7 17.6 15.6 14.4 13.1 12.6 11.5 10.4

13.1 14.5 13.5 12.9 12.9 12.8 15.2 14.5 13.6 12.2 10.4 9.8 9.5 10.1 9.1 8.5

3.13

As per the Statistics published in the Indian Public Finance, Statistics, the pay and

allowances as percentage to GDP in 1996-97 was 1.5% whereas it is presently at 1.1% of the GDP. 3.14

Table [IV.2] indicates the Wage Bill of the Central Govt. employees on crucial

occasions, i.e., 1960-61, 1975-76, 1986-87 and 1997-98 and 2006-07, i.e., the years in which the 2nd, 3rd, 4th and 5th Pay Commission’s recommendations were implemented. Table-IV.2 Year 1960-61 1975-76

Revenue Budget Total Revenue receipts

Total Revenue Expenditure.

1,297 8,075

1,246 7,189

Wage Bill 417 1,887

Wage Bill as % of Revenue Revenue Receipts expenditure. 31.3 33.5 22.0 22.8 16

17 1986-87 1997-98 2006-07

33,083 1,33,901 4,03,465

40,860 1,80,350 4,88,192

6,100 27,430 41,770

18.4 20.5 10.4

14.9 15.2 08.5

(BudgetEstimate)

3.15

The following observation in the World Bank Report No. 50 (July 24-2002)

Comparative Public Administration Reports is worth reproducing: “In order to deliver quality public services, governments will need to spend money on goods and services as well as wages and salaries. As a rule of thumb, when this ratio rises over 25 percent, Govt. risks reducing their effectiveness by squeezing non-wage expenditure. 3.16

The Commission may, inter-alia, note that in recent times in the process of cut

throat competition, personnel at various levels, have started migrating from Govt. service accepting fabulous monetary benefit and payments offered by the private entrepreneurs. 3.17

The fact that potentially mobilisable resource exist is attested by many eminent

economists and Study groups. As per the study conducted by the National Institute of Public Finance and Policy the annual black income generated in the economy is of the order of 18 to 21% of the GDP, i.e., about 5,65,192 Crores (2004-05Q.E.). As per the receipt Budget figures for the Year 2006-07 the tax revenue raised but not realized at the end of the reporting year 2004-05 amounts to Rs.111,108 Crores: The Gross NPA constituting unreturned loans and advances taken mainly by the big business houses from the scheduled commercial Banks stood at an alarming figure of Rs.58299 crores. The Govt. should target this black economy to mobilize the additional resources. Besides,we may also make the following further suggestion to augment the resources of the Govt. rather than resorting to the easy option

depressing the wages of the workers and

depriving them of a reasonable standard of living: (a) (b) (c) (d) (e) (f)

to raise the number of direct tax payers to ensure that at least 3% of the population pays wealth tax to impose increased taxes on luxurious items to structure Corporate Tax on Gross Profit instead of Income to curtail the plethora of expenses/deductions/in this Corporate taxsystem Curbing ostentatious public expenses.

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18 3.18

The Govt. had been claiming success for its New Economic Policy. Therefore,

there cannot be any reason for denying the legitimate demands of the Central Government employees. 3.19

Before we conclude, we would like to reiterate that the Govt.`s resources as of

date do permit to raise the minimum wage of the Central Government employees to Rs.10,000 on par with the Public Sector Undertaking, as it will not result in crossing the desirable spending threshold limit of 25% of the resources needed to deliver quality public services.

18

19

Chapter-IV Principles of determination of pay The 6th Central Pay Commission has been asked to examine the principles that should govern the structure of pay and allowances and other facilities and benefits, whether in cash or in kind, to the six categories of employees enumerated in para 2(A) of the notification dated 5.10.2006. In this chapter, we shall deal with the broad principles that should govern the determination of minimum wage and the pay structure of Central Government employees. Before we dwell upon the various principles enunciated by the expert committees and Commissions and its applicability in the present juncture we would like Pay Commission to consider the following factors. (a) The Central Government employees were in terms of emoluments better placed than others in the fiftees. This position started to slide down from 1958-59 onwards. Presently they are far behind most of the public sectors workers,. One important reason for the emergence of such a phenomenon was the frequency in which the wage settlement was brought about in the Public Sector undertakings through bilateral negotiations.

Sans the benefit of

collective bargaining, the wage revision in the case of Central Govt. employees had been taking place after every 10/15 years through the instrument of Pay Commission. The ever widening gap even at the minimum wage level has set in demoralization and a feeling of despair among the Central Govt. employees. (b) The elimination of such a sense of grievance, which is real, should be considered to be the important task before the Pay Commission. The wage structure should be based on a sound principle; it should meet the test of reason and relevance engendering a feeling of “fairness” amongst the employees. (c) The norms laid down by the 15th Indian Labour Conference (Tripartite) for fixing the need based minimum wage is relevant even today though it could

19

20 not have visualized the basic requirements of the modern living conditions. The minimum wage, the 6th CPC may determine, should not in any case be less than the minimum wage computed as per the norms laid down by the 15 th ILC. (d) The most important factor in the determination of wages of civil servants all over the world is the “fair comparison with outside rates.” Due to the nonavailability and unreliability of the data regarding wages in the private sector, such comparison in the Indian context, in all fairness, should be restricted to the wages in the public sector, more specifically the Navaratna companies for the Public Sector is considered as part of the Central Government in terms of Art. 14 and 16 of the Constitution. Besides, it must be noted that the wage agreement in these undertakings is governed by the directives issued from time to time by the Department of Public undertakings under the Ministry of Industries. Minimum wage and Pay Structure 4.2

The two important methodologies that could be adopted for the determination of

the minimum wage in the case of Govt. employees are: (i)

Fair comparison of the rates obtaining in the Public Sector undertaking in respect of an unskilled worker.

(ii) 4.3

Adopting the 15th ILC norms.

The minimum wage so determined, shall be the premise on which pay scales

could be constructed taking into the existing or desirable relativities. 4.4

It would thus be pertinent to indicate briefly the various conceptual formulations

made by the successive Pay Commissions in the matter of minimum wage determination. The Second Pay Commission considered the recommendation of the 15th ILC regarding the need based minimum wage. Their observation in this regard is as under:-

20

21 “It is for the first time in this country – and for the matter of that, in any other country of which we have information- that the need which a minimum wage should satisfy, have been defined in precise, quantitative terms”………………… “We have found on examination, that while the standard set in the particular balance diet formula (adopted by the 15th ILC) may be feasible in respect of cereals and to a large extent in respect of pulses, they are clearly impracticable in the case of other food stuffs, fruits, milk, meat, fish and eggs”…………..”We, however, thought that it would be of some aid in our deliberations if a diet capable of providing the requisite calories and other essential nutrients was worked out within the limits of the country’s present output of foodstuff. A diet suitable for an adult man engaged in moderate activity was accordingly worked out and sent to Dr. Patwardan for his opinion. We have considered whether a minimum wage of the size implied in the 15th Labour conference recommendation is feasible economically and financially and we have reached the conclusion that it is not.” 4.5

The 3rd Pay Commission estimated the need based minimum remuneration

according to their own concept adopting the vegetarian diet recommended by the Indian Council of Medical Research and quantifying the same on monetary terms by applying the average of the rates of the articles obtaining in the cities of Mumbai, Chennai, Kolkata and Delhi. They thus worked out the same at Rs. 196, co-related to the cost of living index at 200 [base 1960=100]. While adopting the minimum wage so quantified, deviating significantly from the 15th ILC norms, they also pointed out emphatically that :“We see no reason why the Govt.;employees should not in the fullness of time, be entitled to the need based minimum wage according to the norms laid down by the 15th ILC. ……….. 4.6

The 4th Pay Commission examined in detail the implication flowing from the amendment to the preamble to our Constitution whereby the words “Socialist and Secular” were prefixed to the word “republic”; directive principles of State policy as enshrined in art. 39; living wage in article 43; etc. and concluded that the directive given in Article 43 for securing a living wage was an endeavour the State must make and the

21

22 Commission be inspired whenever and wherever the question of emoluments for the workers arises for consideration. 4.7

Observing thus, the 4th Pay Commission, without resort to any detailed

computation, rather arbitrarily, reached the conclusion that the salary at the lowest level should be fixed at Rs. 750 per month at index average of 608 (1960=100) 4.8

The 5th Central Pay Commission also referred to Article 43 of the Constitution

(Living Wage), discussed the 15th ILC norms, the recommendations of the ILO 1968, the minimum wage advisory board`s recommendations; the ILO 1992 norms etc. and formulated a combination of the following approaches in the determination of the minimum wage; (i) (ii) (iii) (iv) (v) (vi) 4.9

Need based approach Capacity to pay approach Relative parity approach Job evaluation approach Productivity approach Living wage approach

In fine, they adopted a modified version of the Constant Relative Income

Criterion [by applying a compensation factor of 30.9 per cent representing the increase in the per capita net national product during the period between 1986 and 1995] to work out the minimum wage at Rs.2440/- at the Cost of Living index at 315 points: Base 1982=100. 4.10

As there had been a factual error in the computation of the percentage increase of

NNP between 1986 and 1995, the minimum wage had to be raised later to Rs. 2550 through bilateral negotiations. 4.11

It could be seen from the above that except discussing various rationale and

approaches, none of these Commissions could stick to any consistent and sound principle in the determination of minimum wage. The criterion adopted by the 5th CPC i.e. linking the wages to the percentage increase of the NNP over a pre-determined period is fallacious in as much as the wages of the Central Govt. employees are sought to be co-

22

23 related to a factor which has no relevance to their living conditions or on the evolution of which they have absolutely no control at all. This is amply borne out of the following observation made by the Second Central Pay Commission in this regard. “We have already dealt with the general question whether wages and salaries of Government Servants can be linked with National Income figures in any direct or precise manner, and have reached the conclusion that they cannot be so linked. We have also been cautioned about the imperfections of the estimates of National Income; and advised against making use of them except in a broad, dimensional term”. 4.12

It is therefore, our considered opinion, that the basic norm propounded by the 15 th

ILC is the most scientific and sound rationale in determining the minimum wage as of date though it suffers immensely of deficiencies related to present day living conditions. In the context of the above analysis, we strongly advocate that the minimum wage determined in the case of Central Government employees should not in any case be less than the minimum computed on the basis of the 15th ILC norms. The difficulties faced by the previous Pay Commissions particularly the second and third in computing the minimum wage on the basis of the 15th ILC norms is no longer being encountered by the 6th Pay Commission as the fundamental of our economy is considered to be very strong by the Govt. itself. The cardinal principle of wage determination in the case of Civil servants being “the fair comparison with outside rates”, we suggest that the Commission determine the minimum wage on the basis of a fair comparison of the wages obtaining in the Public Sector undertakings, especially in the Navaratna companies. 4.13

Having stated the principles, we now deal with the computation of Minimum

wage at the entry level of the unskilled worker. The wages of the most of the PSUs are due for revision as on 1st January 2007. The average of the minimum wage in the Navaratna Companies among the PSUs without taking into account the proposed revision hovers around Rs.9450/- including fringe benefits and ex-gratia payments. Acute financial constraints deterred the 2nd & 3rd CPC in recommending the minimum wage based on the15th ILC norms. With the turnaround of the economy, the phenomenal growth in the tax revenue and other receipts, (which is detailed in the succeeding Chapters), the 6th CPC do not encounter the problems and difficulties faced by the earlier 23

24 Commissions. The Public Sector workers have now demanded the Minimum wage at Rs. 11,000/- as on Ist January, 2007. 4.14In the accompanying Annexure (A) we have computed the minimum wage on the basis of the 15th ILC norms. As per the said computation, the minimum wage on the basis of the average of the prices of the articles obtaining in the four Metro Cities i.e. Delhi, Chennai, Mumbai and Kolkata works out to Rs. 9730/-. Even according to the formula enumerated by the 5th CPC, i.e., percentage increase of the per capita NNP, over the years between 1995-96 and 2004-05 at factor Cost at Current prices, the minimum wage workout to Rs.10,239/-. In Annexure-C to this Memorandum, we have given the details of the total emoluments of Central Govt. employees in various Cadres both at the minimum and maximum of the respective Scales of Pay, which is indicative of the widening gap in emoluments at all levels between the Govt. employees and those employed in the Public Sector Undertakings. We, therefore, suggest that the minimum wage in the case of the Central Government employees related to the All India Average Cost of Living Index of 536 as on 1st January, 2006 (Base: 1982= 100) may be fixed at Rs. 10,000/-.

24

25

Fixation of Minimum wage as per the norms of 15 ILC norms Items

Per day PCU (In grams)

Price per kg. (In Rs)

Total cost (In Rs)

475

Per month 3CU (In kg) 42.75

Rice/wheat

22.00

941

Dal (Toor/Urid/moong) Raw Veg Greenleaf Veg Other Veg Fruits Milk Sugar and Jageery Edible Oil Fish Meat Egg Detergents,Cosmetics,ect Clothing Total Misc @ 20%* Total Addl. Exp @ 25%** total Housing @ 10%*** Grand Total

80

7.2

65.00

468

100 125 75 120 200 Ml 56 40

9.00 11.25 6.75 10.80 18 Ltr 5.00 3.6 2.5 5.00 90 (no)

28.00 24.00 26.00 50.00 24.00 24.00 90.00 180.00 180.00 2.50 300 P/m 80/Mtr

252 370 176 540 432 120 324 450 900 225 300 440 5838 1167.60 7005.60 1751.40 8757.00 973.00 9730.00

5.5 Mtr

Notes PCU = Per day Consumption Unit *20% Miscellaneous charges towards fuel, electricity, water etc. **Additional Expense at the rate of 25% includes Expenditure towards education, marriage etc. of children, medical treatment, housing, recreation, festivals etc. as per the Supreme Court Decision in 1991.***Housing at the rate of 1/10 of total salary as per Rule 2A of the Income tax Rules read with section 10(13A) of the I.T. Act.

25

26

Total emoluments (Pay + DA) in respect of some selected posts as on 01.01.2006 : Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Designation Peon Postmen/Police Constable/Lower Division Clerk Upper Division Clerk Junior Research/Statistical Asstt. Asstt. of Central Secretariat Sr. Auditor/Accountant Asst. Accounts Officer Research Asstt. ………….. Section Officer (Central Sectt.) Asstt. Director/Research Officer Under Secretary/Sr. Research Officer Dy. Secretary/Jt. Director Director Jt. Secretary Addl. Secretary Secretary Cabinet Secretary

At Minimum At Maximum of the Pay Scale 4743 5673

5952 8537

7440 9300 10230

11160 14880 16740

12090

19530

14880 18600 22320 26598 34224 41,664 48360 55800

25110 28272 30690 34038 41664 45570

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27 Chapter V. Proposed Pay Structure Having regard to the minimum at the entry level of an unskilled worker, computed as above, we suggest the pay scales for Central Govt. employees belonging to Group C and D as per Annexure-B: While computing the pay scales, we have reworked the existing scales of pay to reflect the correction made in the minimum wage i.e. revising it from 2440 to 2550 in September, 1997 through bilateral negotiations. The conversion factor will thus be changed from 3.25 recommended by the 5th CPC to 3.4 upto and including the Scale of Pay S.6 i.e., 3200-4900/-. In view of the higher minimum recruitment qualification prescribed in the case of personnel occupying Pay scales S.7 onwards in the administrative professional and scientific segments and the highly skilled nature of assigned jobs in the Industrial and operational sections, it is necessary that they are adequately compensated for the skills they possess, for otherwise the Govt. may not be able to recruit better equipped employees and retain them in service due to the better pay package offered by the Private Sector. Without disturbing the relativities violently, we have tried to address this need by applying the conversion factor of 3.75 from this pay scale of S.7 onwards, which brings about the minimum of S.7 Scale of Pay to Rs.4500/- for the existing minimum of Rs.4000/5.2

In tune with our suggestions made elsewhere in this memorandum, we have

proposed open ended running scales of pay with only the minimum, as is obtaining in many Public Sector Undertakings. This would do away with the problem of stagnation to a great extent. We may in this connection draw the attention of the Commission to the alternate method adopted by some of the Public Sector undertaking and State Government to address to the problems of stagnation by creating a master scale of pay. We have proposed the annual increment to be at the rate of 5% of the Basic pay on par with the rates obtaining in the Banking industry.

27

28

P.S. No. S.1 S.2 S.4 S.5 S.6

S.7 S.8 S.9 S.10 S.11 S.13 S.14

Pay =4th CPC 750 775 825 950 975

5th CPC Scale 2550 2610 2750 3050 3200

5th CPC modified 2550 2635 2850 3230 3315

Proposed for 6th CPC 10000.00 10329.00 10995.00 12661.00 12995.00

10000 10500 11000 13000 13500

Incrmt. 5% 500 525 550 650 675

1200 1350 1500 1640 2000 2375 2500

4000 4500 5000 5500 6500 7450 7500

4500 5063 5625 6150 7500 8906 9375

17640.00 19847.00 22050.00 24108.00 29400.00 34911.00 36750.00

18000 20000 23000 25000 30000 35000 37000

900 1000 1150 1250 1500 1750 1850

26000 30000

30000 33750

117600.00 132500.00

120000 135000

S.32 8000 S.33 9000

Rounded

Ratio of Minimum and Maximum Salary shall be

1:13.5

Note: 1. 2. 3.

4.

There will be a slight modification in the pay scales of skilled workers. Scale No. S-3 with a minimum of Rs.800 exist in some departments. They willl have to be given the replacement scale of S-4, the minimum of which is Rs.825/-. For certain reasons, the pay scales of some categories in Gr. C and Gr. B had been higher than the entry scale of pay in Group A. The said status was disturbed by the 5th CPC. To set right and bring back the status quo amte. The concerned organizations will take up the issue before the Pay Commission. The Fast track committee in certain organizations, in order to remove the anomaly has to resort to creation of intermediary scale of pay. Since that being outside the recognized scales of pay, such pay scales should be assigned the replacement scale of the higher scale of pay.

28

29

Chapter VI Allowances Part A 1.Dearness Allowance 6.1.1

Dearness Allowance presently being paid to the Central Government employees is

based on the recommendations of the 5th CPC, salient aspects of which inter alia read as follows: (i) (ii)

(iii) (iv)

(v)

6.1.2

“We recommend that inflation neutralization be made uniform @ 100% at all levels.” “We, therefore, recommend that AICPI(IW) may be the index that may be used for calculating Dearness Allowance for Govrnment employees. The AICPI(IW) series with base 1982 may however be used henceforth for the purposes of calculating Dearness Allowance, as against the existing practice of using AICPI(IW) series with 1960 as the base. This is not likely to cause any difference to the calculations, as the 1960 series on being discontinued in 1988, is being generated from the 1982 series by using a conversion factor of 4.93.” “We propose that the existing practice of using the 12-monthly average of AICPI(IW) for calculating Dearness Allowance may continue.” “We recommend that DA should be converted into Dearness Pay each time the CPI increases by 50% over the base index used by the last Pay Commission. Such DA should be termed as Dearness Pay and be counted for all practical purposes, including retirement benefits.” “Regarding the exemption of Dearness Allowance from tax, we propose that in line with our general recommendation on giving all allowances net of income tax, Dearness Allowance (including Dearness Pay referred to in the last paragraph) should be paid net of tax.”

The government accepted the first three of the above recommendations

immediately and subsequently conceded the fourth w.e.f 1.4.2004 just on the eve of the last Parliamentary elections, in the face of vociferous demands of the Staff Side of the National Council, JCM. However, the last recommendation as regards payment of allowances net of tax has not so far been accepted by the government as it has not considered the same in respect any other allowances similarly recommended by the Commission, except in the case of Transport Allowance. As a result, the so-called 100% neutralization granted by the Commission has, in effect, been reduced to 70-80% depending on the quantum of gross annual salary and allowances of the employees. At

29

30 present, a large segment of employees even at the lower-middle rung has come under the purview of taxation. 6.1.3

Moreover, though the neutralisation envisaged under the recommendations of the

5th CPC is cent percent, but in reality not the case. At any point of neutralisation, actual Consumer Price Index is much higher than the level at which DA is sanctioned. It is due to the fact that DA is calculated on the basis of 12 monthly average and the average is always lower than the actual cost of living index. 6.1.4

The calculation of consumer price index, its basis and the basket of goods on

which it is based is itself questionable and it has become a matter of dispute. Since this is not the forum of which it could be settled, we refrain from going into the details of that aspect 6.1.5

However, in order to practically solve the issue indicated in paragraph 3 above

and to bring some satisfaction among the employees, we suggest that the existing formula may continue with the following modifications: (a) instead of revising the DA once in six months, it should be revised once in three months. (b) The Principle laid down by the 5th CPC as regards merger of 50% of DA with the Pay as DP be modified to 25% to remove distortions in the pay structures. © The 6th CPC may also recommend that DA shall be paid net of taxes on the same line as recommended by the 5th CPC to make the concept of 100% neutralization somewhat meaningful. 2. House Rent Allowance 6.2.1

The present scheme of HRA available to the government employees is based on

the recommendations of the 5th CPC and the current rates of the same are as follows:

30

31 Classification of cities and

Classification

Rates of HRA

towns on population basis 50 lakhs and above 20-50 lakhs 10-20 lakhs 05-10 lakhs 50,000 to 5 lakhs Below 50,000

A-1 A B-1 B-2 C Unclassified

30% of Basic Pay + DP 15% of Basic Pay + DP 15% of Basic Pay + DP 15% of Basic Pay + DP 7.5% of Basic Pay + DP 5% of Basic Pay + DP

6.2.2

Although the 5th CPC recommend that HRA should be granted with reference to

the maximum of a time scale of pay, the government ultimately granted the same only with reference to the existing Basic Pay of the employees. The Commission also recommended that all those employees who reside in contiguous agglomeration around cities/towns where government offices are located be granted HRA at the rates of cities and towns where their workplace is located. 6.2.3

While making the recommendations the 5th CPC considered the criterion

prevailing at that time to be the only practical basis for classification of cities and towns. Accordingly, it recommended six classifications of cities and towns as indicated in Para 1 above. Though the Commission outlined six classifications, they recommended the same rate of HRA for the A, B-1 and B-2 class cities/towns and left one category unclassified. Thus the actual classification was, in fact, reduced to four only. Since the variation between the highest rate (30% in case of A-1 cities) and the lowest (5% in case of unclassified) is of the order of 25%, which is quite high, it gave rise to lot of heartburning and hardship among the employees posted in the C class and the unclassified cities/towns. In case of transfer from the A-1 Metros to the A, B-1 and B-2 cities/towns also, the employees who could not be provided with any government accommodation, felt much hardship with their total pay packet getting reduced substantially. Hence, we suggest that the disparity between the rates of HRA in different classes of cities/towns be reduced and the number of classes be also reduced from the present level of six to only three as follows to meet the ends of justice: (i) (ii) (iii)

Population above 50 lakhs- ‘A’ class. Population between 20 lakh to 50 lakh- ‘B’ class. Population below 20 lakh- ‘C’ class.

31

32

“The third Pay Commission had inter-alia, made the following recommendations on housing and house rent allowance :(i) (ii)

6.2.4

Government should take houses on long lease and make residential accommodation available to its employees on payment of 10% of their pay. Government should lay down appropriate rates of HRA for different cities and towns not on the criterion of population but on the basis of prevailing levels of rent. Alternatively, notional rents for different types of accommodation meant for employees in specified pay groups should be laid down for different cities and towns. The difference between the actual rents paid and 10 percent of the pay should be reimbursed provided the actual does not exceed the notional rent, where it does, the extent of reimbursement will be limited to the difference the notional rent and the 10 percent of the Pay.” The 4th Pay Commission while endorsing the above suggestion, observed that as time would be taken to implement the above scheme and went on suggest payment of HRA on an interim basis at the rates indicated in Para 1 above. [Para-5.2]

Inspite of a lapse of 2 decades, the Govt. made no serious effort to implement the

recommendation resulting in fixing HRA in an arbitrary manner. We suggest that the commission should ask the Govt. to implement this proposal within a time frame so that the issue could be settled once for all in a rational manner. It is not a difficult task to fix the notional rent as, even today, the Govt. is fixing market rent for various types of quarters and revise them periodically. The Market rent so fixed is meant to charge an employee who becomes disentitled to Govt. accommodation. That rent is charged on the principle that if the employee had taken a private house of similar type of accommodation, he would have to pay that much of rent.” [ Para-5.3 ] 6.2.5

However, in view of the pressing need for the immediate revision in existing HRA

scheme, and till the govt. decides upon the above proposal, as an interim measure, we propose that the rates of HRA be revised in the following manner on the basis of the classification proposed by us in Para-(3) above in order to reduce the disparity between the rates obtaining at present as well as to take care of the rapid spurt in the cost of

32

33 housing in all parts of the country in general and the metros in particular, during the last one decade: (i) (ii) (iii)

HRA for ‘A’ class cities- 40% of the revised Basic Pay HRA for ‘B’ class cities- 30% of the revised Basic Pay HRA for ‘C’ class cities- 20% of the revised Basic Pay

It is pertinent to mention here that the above suggestion quite conforms to the concept of exemption granted to the Salaried tax-payers in respect of HRA drawn by them under Section 10(13A) of the Income Tax Act read with Rule 2A of the Income Tax Rules which allows upto 50% of Salary as exemption towards House Rent paid as HRA in respect of Mumbai/Kolkata/Delhi/Chennai and upto 40% of Salary in the case of other cities. “At present the cities are classified for the purpose of HRA & CCA differently; that is to say that in case of HRA population of the city proper only is taken account, whereas for the purpose of Compensatory (City) Allowance (CCA) Classification is made on the basis of population within the urban agglomeration of the City/Town. This distinction is unjust and uncalled for. Hence it should be done away with.” [ Para-5.7 of Memorandum to 5th CPC] “There is at present a system of reappraisal of population between the period of two census. However, this has not worked satisfactorily as the appraisals are made almost at the fag end of the decade. The proposed appraisal should be completed within 5 years of the previous census.( and given effect from the date of completion of 5 years) This would enable several cities which are marginally below the prescribed level to be upgraded in time to higher classification for the purpose of HRA & CCA.” [Para-5.8 of the Memorandum to 5th CPC] 3. City Compensatory Allowance 6.3.1

As in the case of HRA, the 5th CPC recommended population criterion to continue

for the purpose of classification of cities for determination of the rate of City Compensatory Allowance also. But as has been stated by us earlier, two different criteria were recommended to be followed in the case of these two allowances, which is required to be removed. The 5th CPC restricted the CCA only to the A-1, A, B-1 and B-2 cities and recommended lump sum amounts in the following manner: (Amount in Rs.) Basic Pay (Rs)

A-1

A

B-1

B-2

33

34 as per 4th CPC 750-1000 1001-1500 1501-2000 2001 & above 6.3.2

90 125 200 300

65 95 150 240

45 65 100 180

25 35 65 120

The 5th CPC, however, did not provide any basis for arriving at the lump sum

figures recommended by them. On the contrary, they observed that they did not support the demand for making CCA as a percentage of the basic pay because this amounts to admitting a firm and causal relationship between CCA and income, while admitting at the same time that CCA is paid as a correction factor for compensating the employees for the ‘relative costliness’ of cities. These observations sound paradoxical in as much as ‘relative costliness’ is also, in a sense, a form of ‘dearness’ and should be governed by the same principles that govern Dearness Allowance. All the successive Pay Commissions have admitted the principle that DA should have a one-to-one relation with basic pay because dearness causes direct erosion in pay and as such any neutralization which is to be given because of that erosion has to be related to the basic pay. As such, DA is traditionally being granted as a percentage of Basic Pay. On the same analogy, CCA should also be granted as a reasonable percentage of pay to neutralize the erosion of pay due to costliness of cities. 6.3.3

The present classification on population basis is defective in as much as it does

not actually reflect the exact costliness of the city. In this connection, we would like to mention that on the basis of a special study on comparative costliness was carried out in respect of the 26 centres for which statistical data was available with the Labour Bureau and Central Statistical Organisation. Consequent on the report of the Special Study. 14 more cities were upgraded to the level of B-2 class cities. The study had found that some of these cities were as costly as cities classified as A-Class, though the Govt. decided to grant the status of B-2 class only. If such a study is carried out periodically in respect of cities/towns, it would be rational. We, therefore, suggest that the Commission should recommend to the Government to carry out such studies in respect of towns and cities for whom the claim is made in JCM. The cities should then be classified as the studies reveal and not arbitrarily classified to any lower class. 34

35

6.3.4

As we have already suggested new classification of cities for grant of HRA (in

Chapter on HRA), the same classification may be adopted for grant of CCA at the rates of 50% of the rates proposed for HRA as indicated below on the ground that costliness of getting of housing accommodation and the costliness of other essential articles of daily living have a direct proportion to each other and the most conservative proportion can be 2:1 respectively : A- City B-City C-City

-

20% of Basic Pay 15% of Basic Pay 10% of Basic Pay

Part B. Compensatory allowances: 1.Special Compensatory allowance: 6B.1.1

The present practice of following the State Governments with regard to

classification for Remote Area, Difficult Area etc. has to be discontinued as because some states have merged this allowance with pay or have changed its nomenclature resulting in stopping of this allowance for central Govt. employees. The V CPC, due to paucity of time, suggested that the Govt., should appoint a Committee of Officers (Experts) to prepare a detailed scheme for evolution of a composite Index of Difficulty/ Hardness of an area on the lines of a composite index for backwardness used for allocation of funds among states. Though almost a decade is over, the Govt. have not taken any action to constitute a Committee for this purpose. 6B.1.2 We therefore, request the Present Commission to prepare a detailed scheme for evolution of a composite index of Difficulty/Hardness etc of an area instead of leaving it to the Govt. so that dependence on State Governments is ended and the amount to be paid is also determined on the basis of the degree of difficulties/hardships etc. faced by the employees in a particular area.

35

36 6B.1.3 Alternatively this job may be entrusted to a joint Committee of National Council of JCM. Until such time that the above scheme is evolved, we urge upon the VI CPC to recommend the special compensatory allowance @ 30% of Pay +NPA for part A; 25% at Part B; 15% at Part C and 10% at Part D categories which may continue to be classified by the representative Govt. 6B.1.4

However, wherever it is noticed that the State Governments had merged this

allowance with pay or had changed its nomenclature, the Central Government may be asked to continue to pay Special Compensatory allowance admissible at the category of the station earlier adopted by the State Govt. 6B1.5 There are certain stations which are situated in a trough caused by hills encircling such stations at an altitude which is lower than the altitude of hills surrounding these stations etc. Mussoree. The altitude of hills surrounding such stations may be adopted for classification of such stations. 6B.1.6 There are stations where hill compensatory allowance was admissible prior to V CPC. Such stations may be classified as Part D for the purposes of grant of Special Compensatory allowance. 2. Project Allowances. 6B.2.1

This allowance is being paid at slab rates fixed by various Pay Commissions.

Our considered view is that this allowance should be related to pay and expressed in terms of Percentage of the Pay which would do away with arbitrariness in revising these allowances and no employee will feel that he is being paid the rate at which his subordinates are being paid. We request the VI CPC to recommend 7.5% of pay as project allowance. 3. Training allowance

36

37 6B.3.1 This allowance was introduced in 1986 at the rate of 30% of Pay +DA. On the plea of resource crunch it was reduced to 30% of basic pay and later @ 15% of basic pay in the year 1992-93 (i.e. on 9.7.1992). The V CPC recommended continuance of this allowance @ 15% of basic Pay. 6B.3.2 As the plea of resource crunch is no longer valid and if the object is to attract the best available trainers, the rate of this allowance will have to be restored to 30% of emoluments which was sanctioned in 1986 when it was introduced. 6B.3.3

We request the Commission to recommend 30% of emoluments as training

allowance. 4.Risk Allowance. 6B.4.1 The V Central Pay Commission had recommended that this allowance should be paid only to employees who are exposed to continuous risk i.e. where the risk is inherent and continuous in the occupation itself with adverse effects on health. Various Ministries were asked to set up a committee to review the categories of employees in respect of risk allowance to those who are exposed to continuous risk. This has not been done by many ministries in spite of the fact that Govt. had issued instructions for such a review. Since many concerned Ministries had not undertaken such a review the risk allowance recommended by V CPC has also not been paid to the concerned employees. e.g. Survey of India employees under Department of Science and Technology etc. This should be done now and risk allowance granted to them with effect from 1.8.1997. It was observed that in Botanical Survey of India, Kolkata, there were many cases of death in harness due to snake bite in Botanical Gardens and many other employees were medically invalidated and retired prematurely due to handling of formaldilide and other chemicals. As a matter offact there used to be a Doctor engaged in Botanical Gardens in the past. However, that post was also abolished after which death in harness and Medical invalidation cases have registered an unusual increase. 6B.4.2

It is, therefore, necessary that all concerned Ministries should be asked to

identify the category of employees who are exposed to continuous risk so that they could

37

38 be granted risk allowance. We suggest that the rates of risk allowance as recommended by V CPC may be tripled. To prescribe different rates for non gazetted employees handling Nitroglycerine preparation is also quite irrational. As a matter of fact it is the nongazetted employees who have to be engaged intensively in such preparations and Gazetted Officers are only required to supervise. We therefore, urge upon the VI CPC to grant the higher rate of risk allowance to non-gazetted employees as well. 6B.4.3

There are certain departments like Railways etc. where risk allowance was

admissible to certain peculiar categories. The Departmental organizations will submit separate memorandum in this regard. 5. Night Duty Allowance. 6B.5.1

Though the V CPC recommended that the relaxation of the ceiling for Night

Duty allowance be restricted to only these categories then availing themselves of this benefit, the Board of Arbitration has given a categorical award that the ceiling of Rs 2200 (with reference to IV CPC may be lifted(Excluding Railways). 6B.5.2

We therefore request this Commission to do away with ceiling of Pay for all

Departments where employees are in receipt of NDA. 6B.5.3

The Govt. had not revised the rates of Night Duty Allowance on the basis of

revised pay both while implementing the recommendations of the IV & V Pay Commissions. The Board of Arbitration has also given award that NDA should be calculated on the basis of current rates of pay including DA & CCA. 6B.5.4 We therefore, urge upon the VI VPC to recommend that rates of NDA should be computed on the basis of revised pay recommended by VI CPC and it should be reviewed annually in order to include the DA Admissible. 6.Travelling Allowance (TA) 6B.6.1 The Govt. have prescribed traveling entitlements while on tour by Rail, Road or sea for employees in different slabs (Vide their Ministry of Finance OM F No. 10/2/98-

38

39 1C & 19030/2/97-EIV dated 17.04,1998 and OM No. 31011/7/98-Estt(a) dated 21.07.1999).As the train/road/sea fare of the entitled class is fully reimbursed, including the revised fares, we are not suggesting any change therein except that lowest paid employees may also be made entitled to AC III tier entitlement. 6B.6.2 It is only rates of Daily Allowance which have become totally inadequate with the result that Govt. employees have begun to incur loss.The restaurants providing Tea/Coffee, breakfast, meals etc have revised their rates four times what they used to charge in the year 1996 with which the rate of Daily Allowance stands related. 6B.6.3 Taking these factors into account we propose that VI CPC may kindly consider and revise the Daily allowance rates at least three times of what were prescribed by the Govt. in 1998 vide their above OM date 17.04.1998 when Govt. Servant is traveling or stays in Govt public sector Guest House or makes his own arrangements. We also propose that rates of daily allowance should be raised upward every alternate year. Scheduled tariffs of hostels and establishments were not taken into account even while prescribing rates of Daily Allowance where Govt. servant stays in a hotel etc. providing boarding and or lodging even in the year 1996. In support of this we give below a comparative chart of Daily allowance prescribed when Govt. servant stays in Govt./Public sector guest house and when he stays in a hotel providing boarding and or lodging. In A-1 Class Station, Pay Slabs Rs 16400 and above. Rs 8000 & Above but below Rs 16400 Rs 6500 & Above but below Rs 8000 RS 4100 & above but below Rs 6500 Below Rs 4100.

Stay in Govt./ other guest house 260 230

Stay in Hotel

Difference.

650 505

390 275

200

280

180

170

245

75

105

125

20

39

40 6B.6.4

There were no hotels howsoever nondescript which would charge less than Rs

100% even in the year 1996-1998 in any A-1 towns. Now the situation is that hotels at all stations charge very exorbitant rates. 6B.6.5 Taking this reality into account we propose that the existing rates of Daily allowance when Govt. Servant stays in a hotel with Scheduled Tariffs may be raised by five times atleast in the case of those who are in the Pay scales of Rs 4100 and above but less than 6500 and below Rs 4100 (present slab). In the case of employees in Pay Scale of 6500 and above but less than 8000, the existing rates may be raised by 3 times the existing rates and the officers in Pay Scales of Rs 6500 and above may be doubled. 6B.6.6

We also submit that Govt. should be asked to revise these rates every alternate

year by undertaking survey of rates charged by restaurants and hotels. 6B.6.7

The road mileage rates for road journey from office/residence to Railway

Station/ bus stand may also be doubled. 6B.6.8 The above proposals may kindly be considered by the VI CPC.

7.Transport Allowance. 6B.7.1 As against the recommendations of V CPC to grant Rs 800, Rs 400/ and Rs 100 to Executive, Supervisors and the category of supporting and Auxiliary staff as Transport Allowance, the Govt. adopted the scales system as under for grant of transport allowance.

Pay Scales Employees drawing Pay in the scale of Pay RS 8000-1350 In the pay scale of Rs 6500-7900 or above but less than 8000-13500000 Employees drawing pay below the cale of RS 6500-6900

A-! and A Cities 800

Other Places 400

400

200

100

75

40

41 6B.7.2

Both the recommendations of V CPC as also the manner in which it was

implemented were quite arbitrary, irrational and generated several anomalies. It was found that these low paid employees who were residing far away from their offices got the least compensation, the Officers who were generally provided Govt. Accommodation near their offices got highest compensation. Another anomaly created was those employees in lower pay scales but drawing higher rate of pay than the ones who were in the higher pay scale but drawing lesser pay were getting lower rate of this allowance than those in higher pay scale but at lower pay by Rs 300/Rs 400. This matter was considered by the Board of Arbitration (JCM) and award has been given by them which is as under: 6B.7.3 Transport allowance shall be calculated on the basis of Pay Range/Pay Scales and not on the basis of pay scales. Employees in the Pay Range below RS 6499 shall be paid this allowance @ Rs 200/per month. For A-I and A Cities and Rs 150 for other towns. Instead of existing rates of Rs 100 and Rs 75 respectively. Whereas employees in Pay Range of Rs 6500 to 7999/- be paid transport allowance @ 500 for A-I and A Cities and Rs 200 for other places respectively. Keeping in view the financial implications we direct the Govt. to calculate and pay the Transport allowance on the aforesaid revised rates with effect from date of award ( 24.11.2005)” It has still not been implemented. 6B.7.3

As per procedure laid down, the Govt. were to take a decision either to

implement or to refer it to Parliament for rejection or modification of the award within a period of 6 months. Though we are not satisfied and would have liked to request the Commission to improve upon the award but because of the award having been given by a Judicial authority, we restrain ourselves at the moment and request for a recommendation to implement the above award . 8.Leave Travel Concession. 6B.8.1 The Leave Travel Concession envisages reimbursement of expenditure on travel to the declared home town once in a block of two years with a provision that a visit to any place in India would be allowed in a block of four years.

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42 6B.8.2

The V CPC had recommended to give option to employees to avail the

Concession for travel to their Home Towns on three occasions in a block of four years by surrendering their claim to the All India LTC which would otherwise be admissible. This liberalization was not implemented by the Govt.. 6B.8.3

Considering all the factors, we propose that two home town LTC in a block of 2

years or one All India LTC in a block of 4 years may be provided. 9.Special Pay 6B.9.1

As defined in FR-9(25) the Special Pay is granted in consideration of (a) the

specially arduous nature of duties, or (b) a specific addition to work or responsibilities. For arduous nature of duties or for a specific addition to work or responsibility, there is every justification for providing a higher Scale of Pay but with a view to contain the multiplication of pay scale, the scheme of Special Pay was thought of. In any case, therefore, it is an adjunct to pay and that was why it was treated as part of Pay under FR.9. 6B.9.2 There is hardly any ground on which the Special Pay can be transformed as an Allowance because it is not based on any compensatory considerations. 6B.9.3

The decision of the 4th Pay Commission to exclude it from Pay and

recommendation of V CPC to change its nomenclature to “Special Allowance” are irrational and should be reviewed by the VI CPC. 6B.9.4 We propose that Special Pay which is granted in lieu of higher pay scale should be treated as Pay for all purposes like DA , other allowances and retirement benefits. 10.Deputation (Duty Allowance) 6B.10.1

The V CPC did not change the rate of 5% of Pay as Deputation (Duty)

Allowance when deputation assignment is within the same station and at the rate of 10 percent of basic pay when assignment involves change of station which was

42

43 recommended by the IV CPC. The only change they recommended was that ceilings of Rs.250/- pm./ Rs.500/- p.m. prescribed by the IV CPC were removed. 6B.10.2

The result is that these rates do not provide enough incentive to persons

possessing the necessary expertise to offer themselves to serve on deputation and many ex-cadre posts remain unfilled. This was also brought to the notice of V CPC by many Ministries and Departments. 6B.10.3

The plea that with revision of pay scales the amount of this allowance in

absolute terms would also increase as advanced by the V CPC for not enhancing the rates of this allowance has not altered the unwillingness of the persons with requisite expertise to offer themselves on Deputation terms to man ex-cadre posts. 6B.10.4

That being the case, there is enough ground to restore the rates of

Deputation (Duty) Allowance to 10% of Pay when assignment is in same station & 20% when assignment involves change of Station. We request the VI CPC to consider the above proposal. 11.Scheme for Educational Assistance 6B.11.1

V Central Pay Commission, taking into account the general increase in the

cost of living and the impact of inflation recommended the following rates of assistance/reimbursement :

(1)

Children Education Allowance

:

Rs.100/- p.m. per child

(2)

Reimbursement of Tuition Fee

: (a) (b)

(3)

Hostel Subsidy

:

Rs.40/- pm per child for Class-I to X. Rs.50/- p.m. per child for Class-IX to Class-XII © Science Fee of Rs.10/- pm for ClassIX to XII, if charged separately. (d) Rs.100/- p.m. per child for physically handicapped and mentally retarded child from Class-I to Class-XII. Rs.300/- per month per child.

43

44 6B.11.2

The V CPC also recommended a triennial review of the above scheme so

that rates could be updated to neutralize inflationary factors. In case of tuition fee, the V CPC also recommended that it should be paid even when the children are admitted in schools not recognized by the Govt.. The triennial review was demanded by the StaffSide in the National Council JCM in year 1999-2000 but it was turned down by the Govt.. 6B.11.3

We are now in an altogether different scenario as regards education is

concerned. Education has become a commodity to be traded. Whereas Govt. schools have either been abolished or have very inferior infrastructure and Teachers, Private Schools with Corporate Culture have sprung up in all corners of the country. They are charging exhorbitant fees. Even for primary education, their tuition fee ranges between Rs.10,000/p.a to Rs.25000/- p.a. Tuition fee even in the Govt. schools have been raised considerably. 6B.11.4

The Central Government employees especially at the lower strata find it

extremely difficult to meet the genuine aspiration of their children to get educated. The Central Schools, which had a targeted admission procedure and affordable fees structure have due to the Government’s policies, are not in a position to provide the required facilities to the pupils. The Commission must recommend to either reimburse the entire expenditure connected with the education of the wards upto the Secondary level including all those are charged by the Public School or make available the necessary infra structure to the Central School so that the wards of the Central Government employees could be admitted to these schools and get educated on par with others in the Public Schools. 6B.11.5

In this changed scenario, it is necessary that a detailed survey of fees etc.

being charged for imparting education is undertaken and the scheme of educational assistance is revised. We propose that the rates recommended by V CPC may be revised tenfold as at many places, there are no Central Schools. 12.Conveyance allowance. 6B.12.1

Fixed conveyance allowance is granted to Government servant whose

duties require him to undertake extensive traveling out or within a short distance from his headquarters below the prescribed limit which do not render him eligible for daily 44

45 allowance under SR 25. The present rate of such allowance is as under. This was fixed w.e.f. 1.8.1997 vide MOF OM No. 19039/3/98-E-IV dated 18.9.1998. Average monthly journey

By Motor Car

201-300 301-450 451-600 601-800 above 800 Kms. 6B.12.2

560 840 1035 1215 1500

By other modes of Conveyance 185 240 320 375 425

As per the Scheme, the Conveyance allowance is given only if a Govt.

servant uses his own vehicle or travels in a public transport system. Between 1996 and 2006 the fuel charges alone has been more than doubled and the cost for upkeep of the vehicles has gone up substantially. We therefore, suggest that these rates may be tripled. Since this allowance is mostly in the character of reimbursement of the expenses incurred, it is necessary that these rates are revised every alternate year to co-relate it with the rise in the prices of fuel, which spirals frequently with international price fluctuation of petroleum products. 13.Overtime allowance. 6B.13.1

The third, fourth and fifth Central Pay Commissions had recommended

discontinuance of over time allowance except in the case of industrial employees, staff car drivers and operational staff .

However, the Govt. continued to pay overtime

allowance calculated on the basis of notional pay in the pre revised basic pay of IV Central Pay Commission. 6B.13.2

This matter was referred to the Board of Arbitration in CA reference No. 2

of 2004. On 6.9.2005, the award was given to the effect that overtime allowance to all employees entitled thereto shall be calculated on the basis of actual pay in the V CPC revised pay scales and not on the basis of notional pay in the pre revised basis pay of IV CPC with effect from 6.9.2005.

As six months have already elapsed, the award had

become operative. 6B.13.3

We propose that overtime allowance should continue to be paid and

calculated on the basis of actual pay, DA and CCA from time to time. The rate of overtime allowance should be re-fixed as and when DA is increased.

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46 14.Income-tax on salaries and Pension. 6B.14.1

The V CPC in chapter 167 of the report had undertaken sponsored study

on ‘feasibility” of exempting the salaries of Government employees from income-tax. The fiscal Research Foundation (FRF) has favoured complete exemption of salaries paid by the Govt. to its employees from income tax.. Such provisions already exist in neighboring countries like Sri Lanka. 6B.14.2

The V Central Pay Commission, however, did not favour exemption of

Central Govt. employees from Income tax as a good option as it may not be equitable to do so without according the same treatment to other employees. All the same time realizing that salaries being recommended are quite moderate, the Commission concluded that it should be net of tax. With all circumspection the Commission decided to start with allowances and pension only as a first step. The Commission noted that the Ministry of External Affairs pays ‘net of tax’ salaries to its employees on foreign postings under section 195A of the Income-tax Act. This legal provision could be invoked in the case of Central Govt. employees. 6B.14.3

The Commission finally recommended that all allowances of Central

Govt. employees may be paid net of tax.

They also recommended that pensions

including dearness relief of all retired Govt. employees may be paid net of taxes. 6B.14.4

We propose that salaries of Central Govt. Employees and pension

(including Dearness relief) may be paid net of Income-tax.

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47 Chapter VII Women employees The V CPC had noted that women constitute 7.51%[2.83 lakhs] of the total Central Govt. employees(1994-95) and 98% of the women employees are concentrated in Gr.C and D cadres, most of them being in Ministries of Communication, Railways and Defence. We do not have the latest figures of women employees, This can, however, be said that number of women employees in the last 12 years must have grown. 7.2

The V CPC recognized the need for provision of special facilities for women

employees and recommended the following measures. a)

b)

c)

d)

e)

The concept of flexi-time may be tried out on an experimental measure in some offices where jobs are measurable and further extension may be considered later. Similarly the concept of flexi place could be tried out in some selected areas where work even if not done at workplace is strictly measurable. Introduction of a voluntary system of option for serving women employees to work half time for a maximum period of six years in a career when the children are young and family commitments are at the maximum. This half time working may be accompanied with half of the Pay & allowances but not detract from other benefits like housing, LTC, Pensionary entitlement etc. The Govt. should work out the scheme in detail. The Govt. have set up day-care centres and crèches in some places but their number is far below the requirement. The Govt. should consider to set up more day-care centres on Govt. land, construction of building being financed by Govt. Welfare funds. More Crèches in offices or major residential areas may be set up by the Govt.. While not agreeing with recommendation for 30% sub-reservation of women in public employment in each of the categories for SC/ST, OBC and General Category made by the National Commission for Women, the V CPC thought that a better method to ensure greater participation would be to identify certain professions which could be better manned by women such as education, health, nursing care, secretarial duties, computer work etc. At the same time the V CPC also felt that women should not be debarred from any profession including armed Forces, CPOs etc. For better womens participation and bring them into the mainstream, schemes for education of women may also be strengthened and strategies worked out for achieving equal opportunity for women. The age of recruitment for women employees may be enhanced to 35 years.

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48 f) g)

h) i) j) k)

7.3

Govt. may earmark funds separately for construction of more single women’s’ hostel. There should also be some scheme to assure housing for married women employees. The existing guidelines for posting of husband and wife at the same station needs to be reiterated and expanded to include the provision that where posts at the appropriate level exist in the organization at the same stations, the husband and wife may invariably be posted together in order to enable them to lead a normal family life and look after the welfare of the children especially till the children are 10 years of age. Where only the wife is Govt. servant, some guidelines may be framed to facilitate posting in a station where husband is employed. The Ministries having a higher concentration of women employees may consider to provide for higher leave reserve. Arranging charted ‘ladies-special’ buses in bigger cities. The basic requirement of public convenience facilities for women employees may be completely met by setting aside funds for the purpose. Where husband and wife are both Govt. employees the creation of an earned leave bank to be availed of by either spouse may be considered only for a period needed for rearing very young children(such period not exceeding six years in all), provided the women employee has exhausted the earned leave at her credit and there is earned leave to the credit of her husband.

We find that the recommendations at a);b);e);f);j);&k) have not even considered

by the Govt. and therefore, have not been implemented. The action taken to implement the recommendation at c) and i) is not enough. 7.4

These recommendations at (d) above is very vague and general. What is needed

is to implement the recommendations of the National Womens Commission for 30% subreservation which will automatically enthuse women to equip them and bring them in the mainstream. 7.5

The recommendation at (g) above also remains to be implemented. It is observed

that in spite of the existing guidelines for posting husband and wife in the same station, it is not being observed particularly in case of Gr.C women employees. These guidelines have to be made mandatory so that the posting of husband and wife in the same station is ensured.

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49 Chapter VIII Special Duty allowance (NE Region) Due to the then prevailing insurgency and disturbances in the North Eastern Region, the Staff Side brought in an agenda for discussion in the National Council for the grant of certain special allowances to the Central Government employees posted there. The Govt. responded by setting up a committee, which was headed by the then Secretary, Personnel. The Govt. of India issued orders to give effect to various recommendations of the said committee. (O.M No. 20014/3/83 E) dated14.12.1983) The said order regulated the various allowances to the Civilian employees posted in the States of North Eastern Region.

The most important factor that had gone into the formulation of

recommendation of the committee was the risk and dangers the employees posted in these regions had to face in the then prevailing socio political situation. One of the recommendation of the Committee was to grant a special duty allowance at the rate of 25% of pay subject to a ceiling of Rs. 400. This was later changed to 12.5% of pay subject to a ceiling of Rs. 1000/-. 8.2

One of the most debilitating conditions, the Government prescribed for the grant

of the said allowance was the requirement of an all India transfer liability in built in the terms of conditions of employment of the officials posted in NE Region. This was later modified by extending the benefit to all the State Cadre Officers. Viz. IAS, IPS etc. as also the personnel in the Para Military forces viz. Assam Rifles, who in the normal course are not liable to be transferred outside the state to which they are initially posted. In short the allowance was restricted to Group A officers of the Government of India, generating resentment amongst the non gazetted employees of this region. It must be noted that it is primarily the non gazetted employees who are at the cutting edge of public contact who are the victims of the risk and danger emanating from the socio political situation in the region. We may also bring to the Commission’s notice that large number of Railway employees posted at various parts of N.E. Region were burnt alive; many were shot dead while on duty. Besides, many employees had to face abduction and are subjected to extortion. The insurgency in the area has increased leaps and bounds. In essence, the Government converted the risk allowance into an incentive scheme for eliciting the voluntary response from the officers for being posted to North Eastern Region. This

49

50 arbitrary decision gave rise to agitation and plethora of court cases. In certain cases, the Government succumbed to the organized agitation and in others, the Govt. had to implement the directive of the Court. The anomalous position that emerge today is that the entire Group A Service personnel posted in the North Eastern Region and large section of other Civilian employees are granted the said allowance, a good section of the employees are denied thereby perpetuating the element of discrimination. 8.3

The issue was also subject matter of consideration by the 5th Pay Commission.

The Commission extended the benefit to the IAS officers posted in Sikkim and removed the ceiling of Rs.l000. The Govt. has later extended the benefit to the officers posted in Andaman Nicobar Islands. 8.4

It must be noted in this connection that the State Cadre Officers viz. IAS IPS are

not liable to be transferred out the State to which they are allotted and most of the Para Military personnel especially of Assam Rifles etc. are not moved out of the region. If at all they are to be transferred, they are only to be transferred out of North Eastern Region. The Staff side had taken up the matter before the National Council even after the 5th CPC recommendations were implemented. On various occasions, the issue was discussed but without reaching an agreement. The Government has indicated that this issue will be specially referred to the 6th CPC for their consideration. We request the Commission to look into the issue and ensure that the arbitrary decision that has given rise to senses of discrimination and discontent amongst the non gazetted employees in particular is set aside and the allowance is recommended to be granted to all employees and officers posted in the North Eastern Region.

50

51 Chapter IX Miscellaneous 1.Housing facilities Housing is a basic human need and valuable to promote sociological, biological and economic well being in society. The 5th CPC dealt with this matter in great details and make the following recommendations : The action is taken by the Government is also indicated : (a) Action:

(b) Action. (c) Action. 9.1.2

Govt. should make efforts to achieve the housing satisfaction level of 70% in Delhi and 40% in other cities and towns within a period of 20 years : No effects to achieve the above targets have ever been initiated by the Government , An issue of constructing a hostel in Delhi for Government employees has been pending in the National Council JCM since 1994 Leased Accommodation in field organizations should be provided as is being done by the Railways to ease the problem of housing including sale lease by employees. None of the departments have taken any action in this regard. The residential properties taken over by the Government under provisions of Income tax Act should be allotted to Government employees instead of auctioning such properties. Not implemented by the Government.

We, therefore, suggest that Government’s commitment to implement these and

such other recommendation which the 6th CPC may make should also be insisted by the Commission. 2.Medcial facilities for the employees. 9.2.1

On this matter also most of the recommendations made by the 5tyh CPC have not

been implemented by the Government like pooling all authorized Medical Attendants Attestation into a single CGHS health agency for providing CGHS facilities for limited hours in a day, till regular dispensaries can be operated, contributions paid to towards the medical facilities be treated as deductible from total income, extending the scheme of life

51

52 time contribution available to pensioners, also to serving employees as well, introduction of health credit card, compulsory medical examination once in a 3 years at Government cost for all employees beyond 40 years of age. 9.2.2

Similarly on the following matters also, most of the recommendations made by

the 5th CPC have not been implemented. 1. 2. 3. 4. 5. 6. 7. 8. 9.2.3

General Provident Fund Leave entitlement Hours of work and holidays Welfare measures like recreational facilities holiday home benevolent fund Canteen facilities Service matters.

We, therefore, suggest that these recommendations may be referred to the JCM to

arrive at an agreement to implement them. Alternatively, the 6th CPC may take a firm commitment from the Government to implement these recommendations. 9.2.4

As regard Service Rules are concerned, we are of the view that the Parliament

may be requested to enact a Law on these Service matters (Conduct, CCA, etc.) Rules as required under Art. 309 of the Constitution. Since the powers given to the President to frame these rules as per Proviso to Article 309 of the Constitution, is only a transitional power it is high time that these rules are now framed by the Parliament through an Act of Parliament. The existing Service rules are legacy of the colonial power and these are most oppressive and in curtailment of the democratic rights, not all in conformity with the rules which are applicable to Civil Service in other democratic countries like Britain, France etc. The Commission may for this purpose give a draft bill on the lines of service rules applicable to British Civil Service to the Government.

52

53

3.Fixation of Pay on Promotion. 9.3.1

The V Central Pay Commission had recommended that provisions of FR I()a)(1)

(Old FR 22c) may be amended to provide an addition of 3% of basic pay in the lower grade or one increment in the lower grade. As a result of negotiation it was decided that on promotion minimum increase of Rs 100 may be ensured. There are certain posts in the Central Secretariat in which a minimum of RS 650 increase in pay is being allowed on promotion. 9.3.2

As an increase of Rs 100 would be quite inadequate in the revised scheme of

things where lowest rate of increment of Rs 500/- has been suggested by us, we propose that on promotion there should be a minimum increase by two increments or of Rs 1000/whichever is higher. 4.Fixation of Pay in the Revised Scales. 9.4.1

The pay in the revised scales of IV and V Central Pay Commission was fixed by

adding 20% and 40% of existing basic pay in the emoluments (Pay (including stagnation increment) +DPA +DA +IRs + Special Pay, if revised scale did not carry any special Pay + NPA) and then fixing it at the next stage in the revised Pay Scale. If the revised pay crosses the maximum of the revised pay scale, the revised pay was to be fixed at the maximum. 9.4.2

The above method of fixation of pay has not been fair to senior employees. We,

therefore, propose that fixation of pay in the revised scale should be on point to point basis so that number of increments carried in the pre revised scale of pay are also granted in the revised pay scales. 9.4.3

We also suggest that benefit of FR 23 also should be available to the employee i.e.

to opt for revised. Pay Scale on any date on which he earns increment in the pre revised scale. 5.Date of effect. 9.5.1

The V Central Pay Commission in para 171.12 of their report had observed that

the Govt. should concede the right of Central Govt. Employees to have complete pay revision once in 10 years. As the recommendations of V CPC were implemented with

53

54 effect from 1.1.1996, the said Commission stated that “the date of implementation of sixth pay Commission should be predetermined as on 1.1.2006. irrespective of when the next pay commission is actually appointed”. 9.5.2

According to V Central Pay Commission’s recommendation , the VI Central Pay

Commission was to be set up on 1.1.2003 so that its report is available by 1.1.2006. This demand was raised in the National Council JCM in the year 2003 but Govt. declined even to consider it. Finally the VI CPC was set-up in the month of Oct. 2006 and that too only when the employees had served a strike notice on 7.2.2006. Even after having agreed in principle to appoint the VI CPC on 15.2.2006, the Govt. took about 9 months to actually notify the appointment of Pay Commission. However, as the issue of date of effect of VI CPC had already been specifically recommended to be 1.1.2006, to put in place a system of decennial pay revision, there was hardly any justification for asking the VI CPC to recommend date of effect of the revised pay scale recommended by it. The inordinate delay in the appointment of VI CPC Pay Commission is solely attributable to the Govt. This cannot be a ground for any change in the date of effect (1.1.2006). The V CPC had submitted its report in January, 1997 and its recommendations could be implemented in the month of Sept. 1997, thus entailing the arrears of pay for 21 months. 9.5.3

Therefore, we propose that the Govt. should be asked to pay an interim relief @

15% of pay with minimum of Rs 1000 with effect from 1.1.2006. This would reduce the amount of arrears which may have to be paid when the report of VI CPC is available in April 08 and Govt. implements it. 9.5.4

The alternative is that the VI CPC may first give their recommendations on

revised Pay structure within a period of six months so that it is implemented in the year 2007 itself. Report on other matters may be submitted later on. 9.5.5

We reiterate and urge strongly that the recommendations of the VI CPC on

revised Pay Scales and allowances should be implemented with effect from 1.1.2006.

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55

6.Classification of Posts. 9.6.1

The System of classification was initiated in 19th Century by the colonial Power

by dividing posts into non-gazetted and Gazetted. This was done only with a view to justify discrimination in matters of certain perks. The nongazetted was bifurcated into Class IV( Group D) and Class III (Group C) and the Gazetted Posts were also divided into Class II and Class I consisting of promotee Officers and Class I All India Services. The objective again was to practice discrimination in matters of certain perks. 9.6.2

The Department of personnel and Training introduced another category of Group

P non-Gazetted placing Assistants of Central Secretariat in it. This classification even did not carry any element of perks which are denied to Group C non-gezetted. As such it has no justification for which it should have been created. 9.6.3

We therefore propose that the Classification of Group B ‘non-gazetted’ may be

done away with and all posts now classified as Group B Non-gazetted may be merged with Group C. 9.6.4

We, therefore, are of the view that the classification of Group A and Group B in

the Gazetted Category and Group C & Group D in the non-gazetted category (by merging Group B Non gazetted posts in Group C may be prescribed by the respective Administration and there should not no ceiling of pay being prescribed by the Department of Personnel and Training. 9.6.5

The VI Central Pay Commission may consider the above proposal.

55

56

Chapter X Extraneous Matters It has been observed by us that Pay Commission have been asked in the past to suggest on certain extraneous issues. This was more pronounced in the case of the 5th CPC. The 5th CPC was inter-alia, asked to make recommendations on the following issues : 1.

Optimizing the size of Govt. machinery.

2.

Human resource development.

3.

Modifying the role of the Government in the era of globalization etc.

10.2

These are in no way related to the issues of revision of Salary structures and other

benefits. The 5th CPC while admitting that the tasks were more or less in the nature of administrative reforms and that time at their disposals to delve deeply into this matter entrusted this task to certain consultancy and adopted their reports. 10.3

The request of the Staff Side of JCM that they should be consulted before

finalizing the recommendations on the above issues Public Service Management and other Reforms were not considered by the said Commission. The result was that the Commission without proper examination and or consultation gave the following sweeping suggestion : i. abolition of 3.5. lakhs vacancies ii. 30% reduction in staff strength across the board in next 10 years iii. offloading of certain tasks not need to be done by the Govt. iv. pass on tasks to State Governments v. transfer certain functions to corporate entities in Public Sector; vi. contract out functions to private sector vii. transfer some entities to Co-operative sector viii. convert some institution into autonomous bodies etc.

56

57

10.4

The 5th CPC emphasized that their report should be taken as a single document

and the inter connectedness of various elements of the report should be borne in mind while taking individual decision. In particular, the Commission insisted that the size of the bureaucracy should be brought down drastically and employees shoulder more workload and responsibilities and be accountable while they are given a revised salary structure. The 6th CPC too has been asked by the Government to: (a) transform the Central Government organizations into modern, professional and citizen friendly entities that are dedicated to the service of people; (b) harmonize the functioning of the Central Govt. organizations with the demands of emerging global scenario etc. 10.5

We are of the considered view that it would be appropriate to have these issues

discussed in the fora of Joint Consultative machinery or to entrust these two Administrative Reforms Commission or study groups and have widest consultations. In any case, it would be a time consuming task which cannot be completed within the time at the disposal of the Commission. We, therefore, suggest that Commission should advise the Govt. to set up an Administrative Reforms Commission or entrust this task to a joint committee of National Council of JCM .

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58 Part II Chapter I Group-`D` Staff: The V Central Pay Commission did not accept any of the demands for upgradation of various categories of Group-`D` Staff. On anomalies caused due to merger of S-2 Pay Scale of Rs.775-1025 and S-3 Pay Scale of Rs.800-1150 (vide Para 53.9 of their Report), the said Commission did admit that “No doubt, this might have resulted in disadvantage to some employees, but this is inherent and unavoidable in any scheme of rationalization”. This merger though done “only in consultation with the Staff Side in the National Council of the Joint Consultative Machinery, to do away with the stagnation in the lower scale resulting in lower pension on their retirement, it was still necessary that the anomalies pointed out to the Commission were rectified. We do hope that VI CPC will rectify these anomalies. 1.2

While demand for parity between Peons and Postmen/Constables of Central

Police Organizations etc. was rejected due to substantial differences in their duties and responsibilities, by the V CPC, the demand for parity with the Pay scale (Rs.950-1560) applicable in the New Delhi Municipal Committee (DMC) for the post of Peon, Safaiwala, Farash and Chowkidar should not have been summarily rejected by the V CPC on the ground that DMC was an autonomous organization and the Commission had not conceded the demand for parity with Public Sector. For similar qualification and same nature of duties there should be same scales of pay in terms of the principle of `Equal Pay for Equal Work`. We, therefore, strongly urge upon the VI CPC to look into this demand as it is based upon the aforementioned principle. 1.3

Finally, the only recommendation which the V CPC gave about Group-`D` staff

was creation of four occupational groups, viz., Office Attendants, Cosmetic Attendants, Security Attendants and Malies. This rationalization, if implemented would have adversely affected Cosmetic and Security Attendants whose total number in comparison with Office Attendants is too meagre and, therefore, their promotional prospects would

58

59 have been reduced to virtual extinction. The Govt. advisedly did not accept this recommendation. 1.4

There was another demand about benefit of fixation under FR I(a)(1)

for

sweepers, Farashes, Chowkidars on promotion to the post of Peon. This matter was referred to the Board of Arbitration (JCM) which has given an award for grant of the benefit of FRI(a)1 (Old Rule FR-22-c) to the aforementioned categories of staff on promotion to the post of Peon. We request the VI CPC to look into and ask the Govt. to implement the above award. 1.5

We have observed that the number of Posts in the higher Pay Scales of Rs.775-

1150(S-2A) and Rs.825-1200 are very few in numbers when compared with the lowest Pay scale of Rs.750-940. Invariably these recruited in the lowest pay scale have to wait for long 12 years (i.e., one year before reaching their maximum) for grant of ACP in the next pay scale of Rs.775-1150 when they have virtually reached the fag end of even the higher pay scale where they have to stagnate for next many years before 2nd ACP is granted. 1.6

Taking this into account we are of the considered opinion that all Group-`D`

employees may be treated as one group capable of performing various duties and a system of time bound promotion with benefit of FR-22(1)1 (Old Rule FR-22C) may be devised so that a fresh entrant in the Pay Scale S-1 may be granted S-2A at the end of 8 years and S-4 after another 8 years and S-5 after another 8 years. 1.7

Similarly of the matriculate Group-`D` employees, who qualify in Departmental

Examination should be promoted to S-5 as soon as they qualify instead of waiting for a vacancy to arise in the cadre of LDC which can be earmarked for promotion quota of 10%. The direct recruitment quota in the Cadre of LDCs (S-5) may be adjusted every year after such promotion. 1.8

Jamadars, Daftries, Gestetner operators are the various cadres to which a Group-

D employees, recruited as a Peon can aspire to be promoted, if he does not acquire the requisite academic qualification of “matriculatation”. The Socio-economic condition in the country is such that large number of Children drops out of school without completing

59

60 even the primary education. The number of these higher level posts are meager and constitutes a small percentage. We request the Commission to look into this matter and recommend up-gradation of at least 20% of the Gr.-D posts on functional basis to any of the aforementioned cadres. This is needed to provide functional promotion to those Group D employees, who are not educationally qualified to be promoted as LDCs. 1.9

We urge upon the VI CPC to consider our above proposals.

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61 Chapter II Office Staff in Non-Secretariat Organisations The V Central Pay Commission had looked into the organizational structure of ministerial posts and found that this differs from organization to organization depending upon

the cadre strength and functional requirements of these organizations. After

examining the different set up and considering the demands placed by various organizations, the V CPC recommended that the cadre of ministerial posts in NonSecretariat Organisations should be organized in the following manner: Posts LDCs UDCs Assistants

No. of Posts

Pre-revised (IV CPC)

19,481 15,353 23,373

Pay Scale Rs.950-1500 Rs.1200-2040 Rs.1600-2660

Remarks No change/up gradation allowed -doMerged Pay Scales of Rs.14002600 & 1400-2300 & upgraded 10% of UDCs in receipt of 35/ Spl.

Office

5,535

Rs.1640-2900

Supdt.

Pay was also merged. Merged Rs.1600-26—(4935) posts with 1640-2900 (610) posts – upgrading the former posts.

2.2

We do not have the latest figures of LDCs but their number has considerably

come down. The job profile of the posts has also under gone significant changes. They are no longer maintaining inward-outward registers (diaries) on account of computerization. Typewriters have been sold out. They now work on computer. In some offices of Accounts, they are now being detailed to do accounts work like maintaining P.F ledgers etc.. In some offices, they have been given training to acquire a requisite minimum speed of 8000- depression per hour. 2.3

In these changed circumstances, we propose that the post of LDC may be granted

replacement scale of pay of S-6: 3200-85-4900. 2.4

The 5th Central Pay commission assigned the scale of pay of Rs. 4000-100-6000

to the UDCs. The entry grade educational qualification prescribed for UDC is “graduation”. The V Central Pay Commission admitted that in certain Departments like

61

62 the Central Board of Direct Taxes, Central Board of Excise & Customs & Accounts Deptt. 50% of posts are filled in by direct recruitment. While it has recommended the scale of pay of Rs. 4500-125-7000 to the Clerks in the Railways on the consideration that 33.33% of the vacancies in the cadre were being filled up by graduates, the UDCs in the Departments under the Central Board of Excise and Customs, Central Board of Direct Taxes, Organized Accountings Services and many others, the assigned scales of pay for UDCs was only Rs. 4000-100-6000. Even though the issue was brought before the National Anomaly Committee for rectification, it is yet to reach its logical end, as the Government has so far not appointed the Arbitrator. While the discrepancy was set right in the organized Accounting Service by an executive order issued by the Government later, which was given effect to from 1.01.1996, in all other Subordinate services, this anomaly remains unresolved.

We request the Pay Commission to recommend to

Government to remove this anomaly and assign them the replacement scale of pay of 4500-125-7000. This is all the more required on the ground that while the direct entry in the Railways are only 33.33%. in all other subordinate offices, it is either 50% or more. 2.5

Assistants in offices in Non-Secretariat Organization have not been granted the

same pay scale which has been assigned to Assistants of Central Secretariat. The V CPC had maintained the traditional approach of keeping Assistants or even stenographers of Central Secretariat at a higher pedestal on the specious plea that they discharge more complex nature of work whereas the Assistants in Non-Secretariat offices only attend to routine duties. This does not have any logic. Such discrimination acts as a demotivating factor in respect of employees in subordinate offices. This unjust discrimination should go and Assistants in offices in Non-Secretariat Organization may be brought on par with Assistants in the CSS. Recently, Assistants in the Central Secretariat has been assigned a higher pay scale of Rs.6500-10500/-. Accordingly, we propose the replacement scale of of Rs. 6500-10,500 to the Assistants in the Subordinate offices. 2.6

Vide para 46.17 of the recommendation of the 5th CPC, the UDCs who were in

receipt of Special pay of Rs. 70/ for the reason that they had been assigned jobs equivalent to that of Assistants of the Central Sectt. in the subordinate offices, were to be up-graded as Assistants with the scale of pay of Rs. 5000-8000. In many subordinate

62

63 offices, this recommendation of the 5th CPC has not yet been carried out, even though the Govt. did accept this recommendation. The Govt. may be asked to give necessary direction to the heads of such organization to carry out this decision. 2.7

In view of what has been proposed in the foregoing paragraph, it would become

necessary to place the Office Superintendents in as higher scale of pay. Our suggestion in this regard is to upgrade the cadre of Office Superintendents as Administrative Officers Gr. III.

Chapter III. Stenographers

63

64 The V Central Pay Commission have made the following recommendations in respect of Stenographers in offices in Non-Secretariat Organization : “We do not concede the demand for absolute parity in regard to pay scales between stenographers in offices outside the secretariat and in the secretariat notwithstanding the fact that some petitioner Stenographers Gr.-II has got the benefit of parity in pay scale (of Stenographer Gr.-C of Secretariat) through long.” (Para 46.34 of V CPC Report) – “We are of the view that Stenographers Grade-II should be placed in existing pay scale of Rs.1600-2600 (IVCPC) instead of Rs.1400-2300/1400-2600.” (Vide Para 46-4 of VCPC Report). 3.2

With due respect to VCPC, we would like to point out that the above

recommendation of the VCPC has caused the co-existence of two scale of pay for Stenographers in Gr. II in subordinate offices as under: (a) For those Gr. II Stenographers who could obtain favourable order from the Tribunal or High Court:

Rs. 5500-9000

(b) those who did not make a petition before the CAT or the High Court 3.3

Rs. 5000-8000

The decision of the 5th CPC was not only unfortunate but bereft of any merit. It

indeed perpetuated a sense of discrimination.

The issue was brought before the

Government for rectification through the National Anomaly Committee.

Govt. has

allowed the matter to drag by recording disagreement. Since no Arbitrator was appointed by the Govt. till date, the issue is hanging fire. Having exasperated over the dilly dallying tactics adopted by the Government some of the Stenographers Gr. II had to petition to the Court and get similar orders. Those orders are being implemented and the other are left in the lurch. It would be prima facie evident that there had been no justification for the 5th CPC to suggest two different scales of pay for the Gr. II Stenographers in the Subordinate offices. We request the Commission to undo this injustice by recommending the replacement scale of pay of Rs. 5500-9000 to Gr. II Stenographer, which would automatically bring about the replacement scale of Rs. 650010500 for the Stenographer Gr. I in subordinate offices. This anomaly is required to be set right with effect from 1.01.1996. 64

65

3.4

We, therefore, propose that this anomalous situation should be rectified by grant

of higher pay scale of Rs.5500-9000 to all Stenographers Gr.-II of Offices outside the Secretariat with effect from 1.1.96. 3.5

In the pay structure recommended by the Pay Commission, the higher posts of

Stenographer in offices outside Secretariat would automatically be placed in the next higher pay scales, viz., Stenographer Gr.-I instead of Rs.5500-9000 to Rs.6500-10500/-. 3.6

As regards Stenographer Gr.-III is concerned our proposal is for the replacement

of Pay Scale of Rs.4000-6000 by Rs.4500-7000 for the reasons detailed in Part I of this memorandum taking into account the highly skilled nature of their job and in the background of the non-availability of qualified personnel to fill up the vacancies of Stenographers existing presently in various departments of the Government of India. 3.7

The other issues, peculiar to this cadre will be dealt with by the concerned

departmental Associations/Federations.

Chapater IV Other Common Categories. 1.Hindi translators:

65

66 Hindi Translators in Subordinate offices are in two grades : Junior Hindi Translator, Rs. 5000-8000 Senior Hindi Translator Rs. 5500-9000 4.2

Junior Hindi Translator is the entry Grade and the Senior Hindi Translator is the

Promotional Grade. The recruitment qualification prescribed for Jr. Hindi Translator is Post Graduate degree in Hindi or English with English or Hindi as elective subject or Graduation with Diploma in translation. In the Central Translation Bureau, the two grades are designated as Technical Asst. Sr. Translator. 4.3

The 5th CPC recommended the following Scale of Pay for the two grade in the

two organization as under : Posts

In CSOLs and Subordinate In Central Translator Bureau Offices Jr.Hindi Translator 5000-150-8000 5500-9000 Tech. Assistant. . Sr. Translator 5500-175-9000 6500-200-10500 4.4

Having insisted that the minimum educational qualification should be “Post

Graduation” or “Graduate with Diploma in both the organizations, it was incorrect to recommend different scales of pay to them. This is an anomaly disturbing the horizontal relativity. We also find that the assigned duties and responsibilities and job characters in both the two organizations are not in any way different to justify the different pay scales This is also one of the issues that was taken up in the National Anomaly Committee awaiting presently resolution for want of appointment of Arbitrator. We request the Commission to consider our submission to bring about parity in the pay scales in these two organizations by assigning the replacement scale of Rs.5500-9000 for Junior Hindi Translator and 6500-10500 for Senior Hindi Translator. Chapter V Care Takers

66

67 Care takers are entrusted with the job of supervising the work of safari karamcharis, farashes, chokidars etc. They are to ensure the general upkeep, sanitation, and cleanliness etc. of the office premises. In all Government offices, without exception, in the name of financial constraints, this important area of work is seldom cared. While separate cadre of Care Takers exists in larger organizations like Railways, Postal, Defence etc, these are en-cadre posts in other organizations. The 5th CPC suggested certain norms for the creation of caretaker posts in various organizations. (See: Para.55.38: Page 723) The recommendation of the 5th CPC in our opinion places unbearable burden on the Care Takers and consequently the general upkeep of the work suffers. We suggest the following norms for the consideration of the Commission. Upto 1000 Sq. meters.

Care taker job may be assigned to an employee in the scale of pay of UDC with a caretaking allowance equivalent to 10% of Basic Pay.

Upto 2000 Sq. meters

One employee on full time job in the scale of UDC

2000- 5000 Sq. meters

Two Care takers; one in the scale of pay of UDC and the other in the scale of pay of LDC

5000-7000 Sq. meters

Three posts; one post in the pay scale of 5000-8000, one in the pay scale of UDC and the other in the scale of pay of LDC

7000-14000

4 posts. One in the scale of pay of 55009000 and the rest three in the scale of UDC

14000-20000

5 posts. One in the grade of 6500-10500, One post in the scale of pay of 5500-9000 and the rest three posts in the scale of pay of UDC

67

68 20000 and above

Six posts: Two posts in the scale of pays of 6500-10500; Two posts in the scale of pay of Rs. 5500-9000 and three posts in the Grade of UDCs.

5.2

These posts are to be filled up by transfer from the mainstream cadre from among

the persons working in the next below grade on the basis of temporary promotion with fixation benefit. They may be permitted to revert to the mainstream cadres as and when he is promoted to the equivalent cadre with the benefit of the fixation of pay carried from the date of the temporary promotion.

Chapter VI Staff Car Drivers

68

69

The 5th CPC recommended three grade promotions to the Staff Car Drivers. On the basis of the judicial pronouncement, in some of the departments, the number of grades has been raised to four. However, the recommendation of the 5th CPC that the promotion should be time bound and not related to the vacancies in the higher grade was not accepted by the Government. The cadre of Staff Car Drivers in all Subordinate offices has now been structured on the basis of the percentage of post in each cadre as determined by the Department of Personnel.

The non-acceptance of the 5 th CPC

recommendation resulted in the continuing stagnation and elongated waiting period for promotion. The time bound promotion without altering the overall cadre strength is the only remedial solution to meet the reasonable aspiration of the Staff Car Drivers. We request the Commission to recommend to the Government for the acceptance of this suggestion. We also suggest that the pay scales of the Staff Car Drivers in various grades should be so fixed taking into account the fact that acquiring the prescribed minimum qualification with a valid driving license has undergone change recently.

Chapter VII Electronic Data Processing Staff:

69

70 The recommendation of the 5th CPC in respect of Electronic Data Processing Staff is in Chapter 55 Page 731-749. There is no uniformity either in the pay scale or in respect of other service conditions of the EDP staff in various organizations even today. The 5th CPC brought about rationalization of pay structure and promotional avenues in the case of DEOs and Data Processing Assistants. However, to conform to the functional need and other organizational requirements, changes were effected by the concerned Departments. While our affiliated organizations will be submitting their specific proposal in this regard through their memorandum to the Commission, we would only reiterate the need for addressing to the genuine career aspirations of the EDP Staff whose number has been increasing over the years in all organizations of the Government of India. In many organizations, the cadre is still to be organized with a proper hierarchical set up. It is therefore, necessary that at least up to certain levels, promotions are made time bound without resort to the arising of vacancies in the higher grades. This is needed to retain the services of the experienced EDP staff within the organization.

Chapter VIII Canteen Employees:

70

71 All India Central Government Canteen Employees and workers Association has already submitted a detailed memorandum on behalf of the Canteen employees. The said Association is an affiliate of the Confederation. In their memorandum they have traced the duties and responsibilities of the Canteen employees, the various judgments of the High Courts and Supreme Court and have placed the following proposal for the consideration of the Commission.

Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

8.2

Designation Safai Karmachari Wash Boy Bearer Tea / Coffee maker Cook Asst. Halwai Clerk / Salesman Halwai Cashier Store-keeper/ Asst. Manager Manager Grade-III Manager Grade-II Deputy General Manager Accountant General Manager

Replacement scale of 2550-3200 2550-3200 2610-3540 2610-3540 3050-4590 3050-4590 3050-4590 3200-4900 3200-4900 3200-4900 4000-6000 5000-8000 5000-8000 5000-8000 5500-9000

We enclose a copy of their memorandum as annexure and request that the

Commission may recommend to the Government the above proposed scale of pay for the Canteen employees.

Chapter IX 71

72 Cash handling allowance; Posts of Cashiers exist in big organizations. . In smaller Departments certain mainstream cadre employees are asked to handle the cash disbursement function, over and above their normal duties. Our suggestion is that wherever fulltime cashier post is justified, it should be sanctioned.

Those who are posted as Cashiers, they may be

allowed the cash handling allowance as under:Average month disbursement Upto 50,000 50,000 – 2 lakhs 2 lakhs to 5 lakhs 5 laksh to 10 lakhs Over Rs. 10 lakhs 9.2

Amount of allowance Rs. 300/Rs. 600/Rs. 800/Rs. 1000/Rs. 1500

The Group D employee who assist the cashier may be given the cash allowance

@ Rs. 150 per month. All those who are handling the cash disbursement functions should be given the allowance as per the rates mentioned above including those who are assigned the job as a temporary measure. The rates are constructed on the basis of the new pay scales suggested by us elsewhere in the memorandum. We request the Pay Commission to consider our suggestion in this regard and recommend to the Govt. accordingly.

Chapter X Leave Entitlements :

72

73

There was a recommendation of the VCPC for in-service encashment of leave at the time of availing of Leave Travel Concession (vide Para 117.6(i) of the V CPC Report. Since this was not accepted, the matter was taken up before the Board of Arbitration, whose award is still to be accepted and acted upon by the Govt.

We request the

Commission to recommend to the Govt. to accept the award and implement the same. 10.2

The recommendation of the 5th CPC to extend the concession of treating the

period of travel in excess of two days as only “travel time” provided the employees posted in the North eastern to those posted in other remote areas is still to be accepted by the Government. There are inaccessible remote areas in many parts of the country other than North Eastern Region. We request the Commission to look into this aspect and make necessary recommendation.

Chapter XI 73

74 Assured Career progression: Systematic career advancement with a pre- determined residency period in each cadre is what every employee aspires for. Vacancy based promotions had been the system prevailing in almost all Government departments until the Railways introduced the periodical cadre review. It was an experiment carried out with success and brought about fair amount of satisfaction to the Railway workers. Even though the 4th CPC recommended to have the scheme adopted by all the departments, this was not heeded to. Postal department introduced a time bound promotion scheme in 1983 in which the first promotion was offered after 16 years and the second after 26 years. The scheme had the distinct advantage of having promotion without the pre-requisite of a vacancy in the higher cadre. 11.2

The 5th CPC evolved the assured career progression scheme, which was adopted

by the Government with certain modifications. The scheme ultimately evolved was a modified version of the in situ promotion or financial up-gradation. In the case of Group C and D cadres, the financial up-gradation is offered twice in the career with a residency period of twelve years. As per the scheme, one is entitled for the financial up-gradation, only if he is otherwise eligible for functional promotion. No doubt the system has helped quite a number of employees. Despite the plethora of clarifications issued by the DOPT, the system has brought about anomalies by virtue of which the Senior employees are placed in a lower scale, especially in those cadres where lateral entry is provided for. Our suggestion in this regard is to simplify the scheme and make it to cater to the requirement of three financial up-gradations in the total service span. Since it is only a financial upgradation, the prescription to adhere to all the eligibility criterion of the recruitment rules may have to be dispensed with. 11.3

The Commission may kindly note that the 5th CPC recommendation has ensured

time bound 5 promotions in all organized Group A Services, by adjusting the cadre strength through frequent cadre reviews. If similar scheme of functional promotions in a time bound manner through the cadre review is introduced in the case of Group C and D cadres, the necessity for an assured career progression might not perhaps arise at all.

74

75 11.4

We, therefore, suggest that every employee must be given three minimum

financial up-gradations in his service, the first on completion of 8 years, the second on completion of 16 years and the third on completion of 24 years of service.

The

Commission may kindly note that the system of time bound higher grade with lesser residency period and without the requirement of the eligibility criteria has been provided for by many State Governments to their employees.

Chapter XII Transfer Policy

75

76 The 5th CPC has exhaustively dealt with the issue of transfer policy in Chapter 25, Page-215. Many of their recommendations remain unimplemented. The Department of Personnel, the nodal department, has not issued any directive in this regard. With the result, the transfer has remained a potent weapon in the hands of the higher echelons of the bureaucracy to punish their subordinates. Since most of these punitive transfers are made under cover of the undefined term “Public Interest” even the Courts and Tribunals refuses to entertain the genuine grievances of the petitioners. For the facility of easy reference, we quote some of the important recommendations made by the 5th CPC concerning the Group-C & D employees: “We have considered these demands and feel that many of the grievances of the employees can be met if their departments formulate detailed, clear and transparent transfer policies. There cannot be a uniform transfer policy for all the Central Government Departments/Organizations, as their administrative requirements differ. Departments whose personnel have a liability to serve anywhere in India have already formulated transfer policies based on the guidelines issued by the Department of Personnel and Training and cases are stated to be dealt with in the manner according to such guidelines. Departments which have not evolved any guidelines/policies on transfer should do so at the earliest so as to eliminate any possibility of arbitrariness in effecting transfers. The propositions contained in the succeeding paragraphs may be used as general guidelines for inclusion in the transfer policy to be formulated by different departments Detailed guidelines should be formulated and publicized by each department as part of a comprehensive transfer policy so as to ensure that arbitrariness in transfer is altogether eliminated and transfers are effected in as transparent a manner as possible. As far as possible, transfer orders should be issued before the end of the academic year so that these are implemented at the end of the academic session. Any premature transfer before completion of the prescribed tenure should be based on sound administrative grounds which should be spelt out in the transfer order itself. The instrument of transfer should not be allowed to be misused either by the bureaucrats themselves or by politicians in power.

76

77 An additional month’s pay over and above the existing transfer allowance should be paid by the transferring department if an employee is transferred prematurely within a period of one year of his earlier transfer. In the case of employees in groups` and `D` recruited on a regional basis, postings should be given in the home town/home district, wherever feasible and transfers restricted within the region and zone. No transfer of Group `D` employees from one station in another should normally be resorted to except in very special circumstances like adjustment of surplus and deficiency, promotion, exigencies of service, manual transfer etc. Generally, transfers should not be made after a Government servant has attained an age three years less than the age of his superannuation and wherever possible a retiring Government servant should be transferred to a station of his choice, three years prior to his superannuation.” 12.2

In the light of the above recommendations of the 5th CPC, we suggest that the 6th

CPC may recommend to the Government : a)

the Group-C & D employees, taking into account the fact that their emoluments do not even enable them to make the both ends meet, should not be transferred at all except on their request/compassionate ground;

b)

If transfer becomes necessary on promotion, or due to other administrative exigencies, the same should be subjected to a policy evolved in the Departmental Councils. Every department should therefore, evolve a transfer policy on mutual agreement being

reached at the respective

Departmental Council or through bilateral discussions. The Official Side in the Counsel will place an item for discussion in the Counsel on transfer guidelines. c)

No transfer be permitted, which is violative of such an agreement or in the absence of such an agreement having reached in the Council. If such transfers are made sans such an agreement, it shall be instantly cancelled by the Head of Department or Secretary to the Ministry concerned on receipt of a representation for the concerned employee.

77

78 d)

In case, no agreement is reached in the Departmental Council, the same should be referred to the Standing Committee of the National Council, JCM, whose decision is to be treated as final.

e)

In respect of other category of officials, the Department of Personnel must be asked to issue instruction in clear terms as per the above quoted recommendation of the 5th CPC.

Chapter XIII Canteen facilities :

78

79

The VCPC in Chapter 121 of their report made the following recommendations : a)

The earlier scheme of grant-in-aid for initial purchases of equipment, crockery, utensils etc. which was stopped 1.10.91 may be restored at the rates indicated in Para-121.3 of V CPC Report.

b)

Grants for replacement of crockery/utensils and furniture may be paid triennially and for equipments and furniture quinquennially and that quantum of these grants may be kept equal to amount of initial grants indicated in Para-121.3 of V CPC Report (vide Para 121-4 of VCPC Report).

c)

It would be highly conducive to efficiency if beverages and snacks would be served to Government employees at their point of duty (Para-121.5 of VCPC Report).

13.2

As per our information, none of these recommendations have been implemented.

13.3

Our view in this matter is that there is no justification for having statutory

canteens in industrial establishment governed by Factories Act where the

entire

expenditure, barring the cost of provisions is met by the Govt. and the Departmental Canteens get only grant in aid for the payment of salary of the employees and other smaller concessions. 13.4

This is a welfare measure for which there should be no distinction between

Industrial and Non-Industrial Establishment. 13.5

We, therefore, urge upon the VI CPC to recommend to do away with the

classification of Statutory and departmental canteen and to extend the departmental canteens the grant-in-aid and other concessions which are admissible in Statutory Canteens.

Annexure.

79

80 Copy of Memorandum submitted by the All India Central Government Canteen Employees and Workers Association. Sub : Memorandum on Pay – structure, service conditions and various service benefits of the Central Government Canteen Employees – Submission of and request for hearing. Dear Sir, In early sixties the 2nd Pay Commission recommended that Canteen facilities should be provided for the benefit of the Government employees as a Welfare Measure. But it had taken the cause of Canteen employees casually and only recommended some policies regarding functioning of the Canteen in the Central Government Offices. Although 2nd Pay-Commission suggested guide lines in regard to proper running of the Canteens they had not taken into account the sad-plight of the Canteen employees so far as the pay structure of the Canteen employees is concerned. For example, a Bearer of a canteen was paid Rs.40 plus fixed D.R. at the rate of Rs.25/- and other allowances totaling Rs.94/in a month which was much less in comparison to minimum of group-D pay scale in Central Government offices. The sad-plight had been continuing even after 3rd pay commission in as much when a group-D employee had been enjoying pay scale of Rs.196-232 Bearer of the canteen was paid Rs. 46/-. There after Central Government had constituted a High Power Committee to review the pay scale and service conditions of the canteen employees. The said High Power Committee made some adhoc recommendations which were given effect from 1-4-76 as mentioned below :1. 2. 3. 4.

Unskilled sweeper / wash-boy-dish : Revised minimum wages per cleaner) month Rs.175/- (fixed) and without D.R. and other allowances. Semi Skilled : Rs.219/- (fixed) and as above in (Asst. Halawai, Tea/Coffeemaker column – 1. and Bearer) Skilled : Rs.274/- (fixed and as Above in Cook/Halwai) column 2. Clerical & Supervisory : 1. Rs.275/- for matriculate (fixed) Staff and as above in Column 2.

A) Counter clerk/Salesman/Kitchen clerk/ coupon clerk/Reserve Clerk.

: Rs.338/- for graduate – (fixed) and as above in Column 2.

B)

: No pay scale was prescribed.

Cashier, Store keeper only In 2-A and more than 2A Type Canteens

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81 From the above it is amply clear that High Power Committee also failed to remove the anomalies and discrimination meted out to the canteen employees. For example as Sweeper in a canteen was given a fixed pay of Rs.175/- when a sweeper in Central Government Offices had drawn salary with pay scale Rs.196232/- plus other allowances. Even after final recommendations of the said High Power Committee effective from 1-10-79 anomalies and discrimination all sorts were very much existent as mentioned below;1.

Sweeper / washboy/bearer/Tea/ Cofee maker)

: Scale of Pay Rs. 160-5-170-6-200-7-235-275.

2.

Asst. Halawai/Cook/Salesman/Clerk

: 220-5-230-6-260EB-7-295-8-335

3.

Cashier/Store Keeper (In covering 2400 office employees or more)

: Rs. 240-6-270-8-310-10370-12-418

Thereafter, in the wake of interim judgments delivered by the Hon’ble Supreme Court on 26.09.83 Government was compelled to give some fitment in the pay scale of Central Govt. Employees as per recommendations of 3rd pay – Commission which were also partly discriminatory. Anomalies are detailed below;A. Coffee/Tea maker had enjoyed higher pay scale than that of Bearer, Washboy etc. High Power Committee also evaluated Coffee/Tea maker post as semiskilled. In spite of that High Power Committee suggested same scale for coffee / tea maker, bearer, Washboy, sweeper etc. The anomaly was not removed even in the changed circumstances while implementing supreme Court’s interim judgment in as much as Coffee / Tea maker, Washboy, bearer, are all given fitment in the pay scale of Rs.196-232/-. As argued herein before, Tea/Coffee maker should have given fitment in the pay-scale of Rs.225-308/-. Similarly, cook being skilled post should have got fitment in the pay scale of Rs.260-400 instead of Rs.225-308/-. Automatically being Higher Post, Halawai should have got fitment in the pay scale of Rs.330-480/- in stead of Rs.260-400/-. B. Clerks (Coupon, kitchen, Reserve, Account) doing the same nalture of work are being deprived from enjoying same scale of pay as enjoyed by the departmental counter parts. Clerks were fitted in the pay-scale of Rs.225-308/instead of Rs.260-400. Consequential anomalies remained outstanding in case of next higher sports, like Asst. Manager, store-keeper, cashier, Manager, General Manager. 4th Pay Commission has not considered the case of canteen employees on the plea, that the case of canteen employees was subjudice before the Hon’ble

81

82 Supreme Court of India. As a result, even after deliverance of the final judgment of the Supreme Court on 11.10.1991 pay scale of canteen employees were not reviewed to remove anomalies as discussed earlier. Naturallly anomalies regarding pay scale of Bearer, Washboy, Sweeper, Tea/Coffee maker, cook, Halawai, Clerks, Asst. Manager, Storekeeper, Manager, General Manager etc. remained outstanding. Meanwhile implementing the Arbitration Award dated 31.1.1988 on categorization / re-classification of the work, charged and regular classified with staff of P.W.D. as modified by Delhi High Court’s judgment dated 28.1.92, Viz. C.P.W.D.’s order No. 22/9/93 – Ecx dated 20th December 1993 fixed pay scale of bearer as Rs.800 – 1150/- and that of cook as Rs.950-1500. Our Federation strongly argued before 5th Pay Commission that pay scale in case or Bearer and cook as given C.P.W.D. employees should be extended to canteen employees keeping in view the provisions of article 14 and 16 of India Constitution w.e.f. 11-86 i.e. the date of effect of 4th Pay Commission who had not considered the case of Canteen employees as mentioned earlier. We have also placed in records before the 5th Pay Commission that Railway had removed the anomaly in regard to pay scale of clerks by way of giving pay scale of Rs.950-1500 to the clerks of its canteens. Taking into consideration the proper job evaluation of canteen cadres vis-à-vis Arbitration award of C.P.W.D. as well as Railway pay scale in regard to clerks making party in comparison to departmental clerks we have placed demands before the 5th Pay commission for introduction of the following Payscale retrospectively from 1-186. 1.

Bearer / Washboy /Sweeper

: Rs. 800 – 1150/-

2.

Coffee / Tea maker

: Rs. 825 – 1200/-

3.

Clerk / Salesman / Cook / Asst. Halawai

: Rs. 950 – 1500/-

4.

Halwai / Store-keeper / Asst. Manager-cum-Store keeper / Cashier etc.

: Rs. 1200 – 2040/-

5.

Manager for all type of Canteen / Accountant / Deputy General Manager

: Rs. 1400 – 2300/-

6.

General Manager

: Rs. 1600 – 2660/-

On the recommendations of the 5th Central Pay Commission (C.P.C.) relating to canteen staff, Government vide D.C.P. & T’s, O.M. No. 3/1 (iv)/97-Dir dated 24.8.98 granted the following revised pay scales.

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83

Sl. No.

Designation

1.

Safai Karmachari

2.

Wshboy

3.

Bearer

4.

Tea/Coffee maker

5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Pre-revised Pay Scle (Rs.) 750-12-870EB-14-940 750-12-870EB-14-940 750-12-870EB-14-940

750-12-870EB-14-940 Cook 825-15-900 EB-20-1200 Asst. Halwai 825-15-900 EB-20-1200 Clerk / Salesman 825-15-900 EB-20-1200 Halwai 950-20-1150EB 25-1500 Cashier 950-20-1150EB 25-1500 Store Keeper / Asst. Manager- 950-20-1150cum- Store Keeper EB 25-1500 Accountant 1200-30-1440 EB 30-1800 Manager Gr.II 1200-30-1440 EB 30-1800 Deputy Gen. Manager 1200-30-1440 EB 30-1800 General Manager 1350-30-1440-401800-EB-50-220

Revised Pay Scale approved (Rs.) 2550-55-2660-603200 2550-55-2660-603200 2610-60-3150-653540 2610-60-3150-653540 3050-75-3950-804590 3050-75-3950-804590 3050-75-3950-804590 3200-85-4900 3200-85-4900 3200-85-4900 4000-100-6000 4000-100-6000 4000-100-6000 5000-150-800

In our considered view 5th Central Pay-Commission without going into proper job evaluation had made some sorts of window dressing by way of upgrading some cadres and leaving the cases of other cadres unattended. Being aggrieved we had submitted a memorandum to the Prime Minister of India for removal of anomalies in the Pay-scales wherein we had contended the following:“In our memorandum to the 5th Central Pay Commission we had suggested that in the view of Arbitration Award in case of C.P.W.D. employees

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84 the Pay Scale of Bearer / Washboy/Sweeper should be up graded from Rs.750940 to Rs.800-1150 considering the extra load of work. Since tea\coffee maker is a semi-skilled post, we had proposed for upgradation from Rs.750-940 to Rs.8251200. The 5th C.P.C. has recommended a partial upgradation in as much as it has proposed pay scale for bearer and tea/coffee maker to the pay scale of Rs.7751025 by throwing to the wind the proposal of upgradation of Sweeper and washboy. Further the 5th C.P.C. has failed to appreciate the semi-skilled nature of work performed by Tea/Coffee maker and put Bearer and Tea/Coffee maker in the same bracket. Therefore proper job evaluation should be made to give pay scales of Washboy, Sweeper, Bearer and Tea/Coffee maker as suggested in our memorandum submitted before 5th C.P.C. However, we appreciate the proposed upgradation of clerks, Salesman, cook and Asst. Halwai but cannot appreciate the absolute silence of 5th C.P.C. in regard to Pay scale of cashier and Asst. Manager-cum-Storekeeper. Those posts holding higher responsibilities and more work load than that of the former should be placed in the pay scale of Rs.12002040 as suggested by us in our memorandum submitted to 5 th C.P.C. The 5th C.P.C. is also silent about the post of Halwai considering the evaluation of job specially with reference to placement of Asst. Halwai and cook in the Pay Scale of Rs.950-1500. The Pay Scale of Halwai ought to have been Rs.1200-2040. As per recommendation of the 5th C.P.C. the Accountant Dy. General Manager and Manager (A&B Type contains) have been placed in the Pay Scale of Rs.1320 – 2040. To the Context we submit that those posts have already been enjoying the Pay Scale of Rs.1200 – 1800 and in the face of merger of pay scales Rs.1200 – 1800 – 2040 and Rs.1320-2070 into one Pay Scale of Rs.4,000-6000 (revised), the upgradation of Pay Scale of Accountant. Dy. General Manager and Manager ( A and B Type Canteen) has become infructuous. In order to make the said upgradaiton meaningful the post of Accountant, Dy. General Manager and Manager (A&B Type Canteen) should be placed in the pre-revised pay scale of Rs.1400-2300 as proposed in our memorandum submitted before 5th C.P.C. Considering the parity principle and rationalization of cadres the Manager of C & D Type canteens in respect of which no recommendation has been made by 5th C.P.C. should also be placed in the scale of Rs.1400-2300 and this upgradation would remove the inherent anomaly in the Pay-scale of Manager (C & D Type canteens) in comparison to the pay scale of Halwai being junior post and the former being supervisory post. Similarly the Pay scale of Rs.1,600 – 2,600 in respect of General Manager as proposed by 5th C.P.C. is not based on any reason or study. A glaring contrast is apparent in the report itself where the Pay of Senior Manager of Railway Canteens which is equal to the General Manager of the non-statutory central Govt. canteens has been proposed in the pay-scale of Rs.1600-2900.

84

85 Subsequently Government of India vide D.O.P. & T’s O.M. No. 3/1/iv)/97-Div© dated 21.10.1998 granted the following revised Pay Scales in respect of Canteen Cadres that had been left out earlier:Sl. No. 10.

11.

Designation

Pre-revised Pay Scle (Rs.) * Store Keeper / Asst. 950-20-1150Manager-cumStore EB 25-1500 Keeper ** Manager Gr.-III 950-20-1150EB 25-1500

Revised Pay Scale approved (Rs.) 3200-85-4900

3200-85-4900

* Only the last word “Store Keeper” only under lined portion is to be added. ** The complete Sl.No. 11 is to be added. In the result the pay scales in the canteen sector stood as under : Sl. Designation Revised Pay No. Scale approved (Rs.) 1. Safai Karmachari 2550-55-2660-60-3200 2. Wshboy 2550-55-2660-60-3200 3. Bearer 2610-60-3150-65-3540 4. Tea/Coffee maker 2610-60-3150-65-3540 5. Cook 3050-75-3950-80-4590 6. Asst. Halwai 3050-75-3950-80-4590 7. Clerk / Salesman 3050-75-3950-80-4590 8. Halwai 3200-85-4900 9. Cashier 3200-85-4900 10. Store Keeper / Asst. Manager-cum- Store 3200-85-4900 Keeper 11. Manager Gr.III 3200-85-4900 12. Accountant 4000-100-6000 13. Manager Gr-II 4000-100-6000 14. Deputy Gen. Manager 4000-100-6000 15. General Manager 5000-150-8000

PROPOSED PAY-SCALES BEFORE VITH CENTRAL PAY COMMISSION FOR CENTRAL GOVT. CANTEEN EMPLOYEES

85

86 A.

Derivation of Minimum pay :-

Sl. No.

Designation

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Safai Karmachari Wash Boy Bearer Tea / Coffee maker Cook Asst. Halwai Clerk / Salesman Halwai Cashier Store-keeper/ Asst. Manager Manager Grade-III Manager Grade-II Deputy General Manager Accountant General Manager

11. 12. 13. 14. 15.

Pay Scales as Recommended by 5th CPC 2550-3200 2550-3200 2610-3540 2610-3540 3050-4590 3050-4590 3050-4590 3200-4900 3200-4900 3200-4900

Proposed pay Scales before 6th CPC 10,000.00 10,000.00 10,330.00 10,330.00 12,670.00 12,670.00 12,670.00 13,000.00 13,000.00 13,000.00

Annual Increment @ 5% 500.00 500.00 520.00 520.00 640.00 640.00 640.00 650.00 650.00 650.00

16,000.00 20,000.00 20,000.00 20,000.00 22,000.00

800.00 1000.00 1000.00 1000.00 1100.00

4000-6000 5000-8000 5000-8000 5000-8000 5500-9000

CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES AND WORKERS.

86

87

31 Feroze Shah Road, New Delhi 110 001 Dated: 30th December, 2006. President: S.K. Vyas: Working President: Secretary General:K.K.N. Kutty.

98682 44035 98112 13808 98110 48303

To The Chairman Sixth Central Pay Commission Vasanth Kunj New Delhi. 110 070 Dear Sir, Sub:

Submission of Memorandum on Pension and other Retirement benefits.

We submit this memorandum on Pension and other retirement benefits on behalf of the non-gazetted employees of various departments of the Government of India, whom we represent. We request you to kindly consider the same and afford us an opportunity to present our case before the Commission and tender evidence thereon. Thanking you, Yours faithfully,

K.K.N. Kutty. Secretary General.

87

88

MEMORANDUM ON PENSION AND OTHER RETIREMENT BENEFITS SUBMITTED BY THE STAFF SIDE. JCM NATIONAL COUNCIL. Chapter I. Introduction. The Government of India, Ministry of Finance, Department of Expenditure, Notification No. 5/2/2006-E(IIIA) dated 5th October, 2006 in its sub para (E) of Para 2 has included the following as the terms of reference of the 6th Central Pay Commission: “(E). To Examine the principle which should govern the structure of pension, death cum retirement gratuity, family pension and other terminal benefits having financial implication to the present and the former Central Govt. employees appointed before January, 1, 2004” 1.2

The terms of reference made to the 5th CPC in respect of pension and other

retirement benefits were as under: “To examine with a view to having a proper pension structure including death cum retirement benefit and make recommendation relating thereto which may be desirable and feasible.” 1.3

A plain reading of the two approaches makes it clear that the present Government

does not want the 6th CPC to examine the issue with reference to evolving a proper pension structure but should go into per se the very principles that should govern the structure of pension itself. The said requirement imposed upon the Commission should be looked into in the background of the new pension scheme evolved by the Govt. of India for those who are recruited to Govt. service after 1.1.2004 and which has been adopted by most of the State Government. It is, therefore, necessary to trace some of the milestones in the evolution of pension as the most important social security scheme. We hope a discussion on that will help all concerned to place the issue in its proper perspective.

88

89

Article 366(17) of the Constitution of our Country defines pension as under: “Pension: Pension means a pension whether contributory or not, of any kind whatsoever payable to or in respect of any person and includes retired pay so payable; a gratuity so payable and any sum or sums so payable by way of the return, with or without interest thereon or any other addition thereto, of subscription to a Provident Fund.” 1.4.

The 4th CPC went into the conceptual question of pension in detail. Some of the

observation contained in their report is relevant in understanding the purport in the background in which the Central Government employees are placed today. Para 2.13: Part II. But the concept of ‘pension’ however old in its origin, had the latent and real desire to provide for an eventuality – known or unknown. The known eventuality was old age and probable reduction in earning power, while the unknown eventuality was disability by disease or accident or death. Its real purpose was security, even though the beginning was oblique, indiscernible and faint. But the germ of an effort to provide security ran through the provision and it is natural that it should have grown and flowered with the development of human understanding and desire to look after and provide for those who deserved it for man has constantly been seeking means by which to enhance his economic security. But the extension of the pension provision from military service to civilian public employment, resulted largely from consideration for the employees and the pressure of their organsiations. Some benevolent employer goes to the extent of regarding pensions as an absolutely indispensable complement of wages – a terminal benefit. That however, is apart from another aspect bearing on pension – the social aspect. The demographic structure of the population is changing because of the greater expectation of life. Thus, those who are no in middle age or going to be nearly twice as big as economic burden to their children as their parents are to them. The problem in such cases, has been tackled as a social obligation, including social insurance for citizens generally.” Para 2.17: In the very nature of things, every employee, who lives long enough, reaches a stage of diminished outturn of work or what may generally be called non productive years. That may, speaking generally again, be set to be the responsibility of his employer for whom he has spent the best years of his life. In a welfare state that may also be set to be the responsibility of the Government (where he is not in his employment) and, in more modern society, it may also be set to be the responsibility of the individual. So all three namely, the employer, the Government and the employee or one or the other of them, may be expected to contribute towards the pension according to the social or administrative set up of the country or society where the individual undertakes the service but the one common feature and object of pension is to provide for the old age of the 89

90 employee for the simple reason that time has eroded his capacity to earn and he is unable to provide for himself. In a country like ours, where we have solemnly resolved to constitute it into a “Socialist” Republic and to secure to us all social and economic justice (Preamble,) it behoves the Government to take care of its employees by providing terminal benefit like retirement pension when they become entitled to them. We may refer to the directive principle of the State Policy enshrined in Article 39(a) of the Constitution that the State shall in particular direct its policy towards securing that the citizens have the right to an “adequate means of livelihood”…….If, such a citizen is an employee of the State, is it out of ordinary, and not as of a Constitutional directive, that the State should appreciate its duty to provide for him by means of a pension and/or other terminal benefits? (emphasis supplied) …The concept of pension, therefore carries within it the germ of certainty, periodicity, and “adequacy”. ……Ours is a Socialist State and the fundamental aim of Social security is to give individuals and families the confidence that their level of living and quality of life will not, in so far as, be greatly eroded by any social or economic eventuality, including the age of superannuation or oncoming disability/ 1.5

The concept of pension has been explained more precisely in the Encyclopaedia

of Social Sciences, Vol. 11 as under“administrators and civic leaders interested in the improvement of Government services formulated the idea of pension as an efficiency device necessary for the orderly and humane elimination of superannuated and disabled employees no longer able to function efficiently for the proper operation of the system of promotions, for the attraction of better type of employees and for the improvement of working morale”

1.6

On the doctrinal approach the Encyclopaedia further states that: “A doctrine recently advanced and more far reaching in its implications regard the Public Service as the logical pioneer in the meeting of the old age problem as it affects wage earner in modern society. This doctrine considers a pension as a compensation paid to the employee for the gradual destruction of his wage earning capacity in the course of his work . Retirement being a proper charge against the employees, entire period of active service, the employer should make contribution towards the employees eventual retirement during each year of service of the employee, in a manner similar to that in which he annually sets aside a reserve against depreciation and obsolescence of his plant and machinery. Pensions, according to this doctrine, are an absolutely indispensable compliment of wages.”

1.7

In para 2.20 the Commission has observed 90

91

“but even though the Government service pension scheme in our country is non contributory, it has been contended again by way of doctrinal approach, that this is not really so and that some allowance is made for the missing contribution while determining the salaries” 1.8

The Supreme Court in their Landmark Judgment ( which has been approvingly

quoted by the 5th Central Pay Commission in D.S. Nakra and other Vs. Union of India (AIR 1983 SC 130) held that Pension is neither a bounty nor a matter of grace depending upon the sweet will of the employer. It is not an ex-gratia payment but payment for past services rendered. It is a social welfare measure rendering socio economic justice to those who in the hey-days of their life ceaselessly toiled for their employer on an assurance that in their old age they would not be left in lurch. The 5 th Central Pay Commission paying due respect to the above observation of the Honourable Apex Court in Para 127.6 of its report has stated that the pension is the statutory, inalienable, legally enforceable right of employees which has been earned by the sweat of their brow. As such the pension should be fixed, revised, modified and changed in ways not entirely dissimilarly to the salaries granted to serving employees. 1.9

While examining the goals that a pension scheme should seek to sub-serve, the

Honourable Apex Court held that “a pension scheme consistent with available resources must provide that the pensioner would be able to live: (i) free from want, with decency, independence and self respect, and (ii) at a standard equivalent at the pre retirement level” The Court observed that we owe it to the Pensioners that they live not merely exist. 1.10

From the above observation of the Supreme Court it is clear that pension is

payable by the employer i.e the Central Govt. to its retired employees which is their statutory and legally enforceable right from which they cannot be deprived. That the amount of pension must be enough to enable the pensioner to live free from want with

91

92 decency, independence and self respect at a standard equivalent at the pre retirement level. 1.11

The new pension scheme imposed upon the new entrant is a Defined Contribution

scheme under which the pension would not be a fixed amount expressed in terms of % of salaries last drawn but will be variable amount dependent upon the vagaries of stock market in which contribution to the fund would be invested and is at the risk of the employee. 1.12

There is no provision for minimum guaranteed pension, family pension, retiring

pension on premature retirement in the new contributory pension introduced by the Govt. of India and made compulsory in respect of a section of employees entering service on or after 1.1.2004. 1.13

The contributory scheme presently

employees through an executive fiat is also

introduced and made applicable on the in fact the withdrawal of the avowed

doctrinal position the Govt. has taken years back that pension is a compensation paid to the employee for the gradual destruction of his wage earning capacity in the course of his work. It is also in fact a punishment meted out to the employees for the financial profligacy the Government had indulged in the past by not creating the pension fund as a reserve to meet the future but eventual liability.

The Fifth Pay Commission has

recognized the fact that the Governmental pension scheme, though appears to be non contributory is in fact not so due to the very principle adopted in the determination of their wages. They have determined the wages on the assumption that pension would be the liability of the Government and therefore the employees entering service on or after 1.1.2004 are legally not required to make any contribution towards the pension fund. In any case, the Government cannot and should not operate two distinctly different pension schemes for its employees for it is violative of all cannons of justice and article 14 and 16 of the Constitution. The contributory pension scheme can at best be only optional as it has been so devised in the case employees other than Government servants . The Defined Benefit scheme has been in vogue for more than four decades, brought in by the Govt.

92

93 themselves, should continue to be applicable to all civilian employees of the Government of India. The failure on the part of the Govt. to maintain the required pension fund reserves is the root cause for the perceived strain on the economy. Even though in quantum terms, the pension related outflow has increased, it could be seen that the ratio of such expenditure with reference to the total revenue expenditure of the Government had been on decrease over the years. 1.14

We may, in this connection, solicit the attention of the Commission to the

observation in the famous article of Hector Inductivo “Privately managed old age pension schemes: Theory and reality” of the Chilean experience on Pension reforms, where he cautions all Goverments as under:“It is, therefore, important for Governments to know the real implications and complications of the private pension system before adopting it as an alternative to their own existing schemes, lest they jump from the frying pan into fire” 1.15

We may also bring to the notice of the Commission that even in the United States,

it is only under 401 (k) (the voluntary additional pension scheme) that such an investment option is available and not under 301 (k) which is the mandatory pension scheme, where benefits are defined. 1.16

We have submitted a detailed Note to the Official side on the pernicious effect of

the new contributory pension scheme as desired by them during the discussion at the Standing Committee meetings, which is reproduced below for the consideration of the Commission. Staff Side Note on New Pension Scheme: Ref: Minutes of the discussion the Staff Side had on 20 Point charter of demands On 15.02.2006 “Central Govt. employees like employees of any other sector were initially covered by the Contributory Provident Fund Scheme under which each employee was to subscribe 8.33% of his basic pay to the said fund and the Govt. contribute equal amount each month. Separate account for each of the employee had been maintained. 1.2 The Pension scheme presently in vogue was initially introduced as a substitute to CPF in 1920s. On 1.4.1950, the Government made it mandatory for all Central Govt. employees to switch over to the new scheme. In so far as

93

94 Railway employees are concerned, the new pension scheme was offered to them from 1.4.1957.. 1.3 The accumulated balance (including the interest) in the employee’s CPF account was transferred to a Public Account. The Govt. was to continue to contribute, as is the case with any other employer, to this Public Fund in respect of all employees covered by the non contributory pension scheme. In other words the public Account meant for pension corpus fund was to be financed wholly by the Government of India. Not only the Govt. did not contribute the required amount to the Pension Public Account, but they even took away the amount credited to the said account from the CPF. The fiscal stress said to be experiencing today on account of the increased pension liability is a direct result of the non contribution by the Government to the Public Account, ought to have maintained for the purpose of pension distribution. 1.4 ……. It should therefore be the Government’s responsibility to contribute towards this Public Account, for it is an obligation cast upon it by the successive Pay Commissions, and raise its rate of contribution if found necessary to meet the pension liabilities. It is also left to rebuild its corpus to the Govt. and to take the decision whether the funds should be invested in Govt. securities or stock market. Whatever be the decision the accumulations in the said account should be sufficient enough to meet the increasing pension liabilities in respect of the employees. The employees are entitled to get the pension from the said Public account equivalent to what is determined by the Pay Commission and in respect of the existing employees what has been decided by the 5th CPC. 1.5 The amount collected by the Government in respect of the employees who entered service after 1.1.2004 towards contribution to the Pension fund should be credited to the General Provident Fund account of these employees and be provided with interest as per the existing rate. 2. It could be seen that the high level expert group set up by the Government before introducing the new contributory pension scheme has recognized that: (a) (b) (c)

Pension is neither a bounty nor a matter of grace depending upon the sweet will of the employer and that it creates a vested interest. Pensions is not an ex-gratia payment but is a payment for the past services rendered It is a social welfare measure rendering socio-economic justice to those who in the heyday of their life have toiled ceaselessly for the employer on an assurance that in their old age they would not be left in the lurch.

2.1 The said group has observed in their report ( Para 4.23) that to fulfill the objectives of the Pension scheme, the proposed scheme has to ensure that the pension would be able to live free from want, with decency, independence and self respect, with due regard to the financial resources of the Govt.

94

95 2.2….. 2.3 The Group recommended a two tier hybrid scheme whrerein the first tier is intended to primarily act as a social security scheme with a reward for past service but with a matching contribution from employee as well as the Govt. rate of contribution being 10% of wages. Further the Group recommended that the first tier pension would be a defined benefit at 50% of the average emoluments over the last 36 months of the working career of the employee. Additionally the scheme will provide for commutation of pensions and the existing benefit of family pension will also be met from the Pension fund created for the purpose. It was this scheme which was to be made applicable to those who entered service on or after 1.1.2004. When definite benefit scheme is being operated in United States of America, Japan, Canada, Denmark, Germany, France why it cannot be sustainable in our country is beyond comprehension. 2.4.The Second tier recommended by the Group was to be a defined contribution plan which would be voluntary, saving oriented scheme with limited Government contribution not exceeding 5% of pay +DA of the employee opting for it whereas the employee’s contribution may be any amount. 2.5 The contribution scheme introduced by the Govt. should therefore be an additional social security option for the employees and be made purely voluntary in character. The new scheme that has been imposed on the new entrants to Government service ( recruited after 1.1.2004) is not acceptable, as the same is subject to the vagaries of the stock market. 3.Government employees who entered service after 1.1.2004 are entitled to the wages determined by the 5th CPC on par with the employee who were recruited prior to that date. The wage structure determined by the V CPC is on the premise that pension liability shall be that of the Government and therefore, no contribution for pension is payable by them. 4. The Standing Committee on Finance in their report on the Pension Fund Regulatory and Development Authority Bill, 2005 had examined the Pension model adopted in Chile which was akin to what it is now introduced by the Govt . 4.2 It was criticized for its high administrative cost, lack of portfolio choice, high number of switch-overs, inability to provide enough incentives to cover low income employees etc. It has also been noted that private individual accounts had proved to be more expensive and high fees and commissions charged at flat rate on accounts had provided to be highly regressive, and resulted in the monopolization of pension funds and did not bring about the desired coverage. 4.3.In South Africa frauds covering millions of dollars by the Pension Fund Administrators was detected recently”

95

96 1.17

We, therefore, request the Commission to advise the Government to withdraw the

new contributory pension scheme, which has so far not received the parliamentary sanction to continue. We are also of the considered opinion that the Commission should obtain a clarification from the Government to enable it to recommend improvement in the pensionary benefits presently available to the Government employees.

96

97 Chapter II Pension entitlement Since the fifth Central Pay Commission had comprehensively dealt with the entire pension structure, there is hardly any need to go into the whole question of defining various terms and narrating the historical process through which the present scheme has been evolved. All that we have to say is that the existing structure has to be improved upon. We will, therefore, confine ourselves to suggesting the improvements, wherever necessary and justified. A.Emoluments for Pensions : The 4th and 5th CPC without indicating the rationale had recommended that basic pay only be counted as emoluments for computation of Pension. We suggest that the components for purpose of calculation of pension should consist of: (a) (b) (c) (d) (e)

basic pay any special pay or personal pay, deputation duty allowance dearness allowance Non-practicing allowances in respect of Doctors 75% of the running allowed in respect of railway running staff retired after 4.12.88.

Special Pay, Personal Pay and deputation pay have been included under F.R. as part of Pay and therefore, there was no justification or rationale in exclusion of these for the purpose of computation of emoluments. The D.A which is meant to restore the purchasing power of pay is only an addition to the pay. In many countries, there is no system of DA. Periodically the Pay is revised taking into account the rise in the cost of living. Here also there is a system of merging the dearness allowance as dearness pay for the purposes of including it as a part of pay for pensionary benefit. In respect of Gratuity already, the DA is being included with Pay and therefore, there is all the reason for the inclusion of DA in emoluments. B.Average emoluments: Average emoluments for the purposes of Computation of Pension are the old legacy of the former Colonial Rulers [CSR]. It was devised with a purpose to enhance amount of emoluments taking into account the officiating pay in higher post and the deputation duty allowance received by the employees during the period of last 36 months.

97

98 Therefore, no such necessity exists for taking average emoluments for 10 months, if it is not advantageous to the employees concerned. We suggest that the emoluments for the purpose of computation of pension should be the last pay drawn for full month by the employee or 10 months average emoluments, if that happens to be higher. This system of 10 months average has proved to be disadvantageous in respect of employees, who retire within 9 months after a revised Pay structure recommended by the CPC is implemented. This is so because the last 10 months would involve a portion of period when pay was drawn in the pre-revised pay scales. The anomaly in respect of post 1996 retirees was rectified by notionally extending the Revised Pay Scales and its fitment in respect of the months which fell before 1.1.96. Similar anomaly in respect of post 1986 retirees during the period 1.1.86 to 30.9.86 though recognized by the Govt., has not been rectified. Therefore, we reiterate that the pay drawn in the last month should be the basis for computation of all the pensionary benefit. C.Qualifying service for full pension The qualifying service for full pension is presently 33 years. We suggest that the qualifying service for full pension may be fixed at 30 years. This suggestion is being made on the basis of the following factors : (a)

(b) (c)

When the age of superannuation was raised to 58 years the qualifying service was also raised to 33 years. At that time the maximum age for entry in the Central Civil Service was 21 years. At present the maximum age prescribed for entry into Central Civil Service has been raised to 25 years. In the case of SC/ST communities, the entry age is normally relaxed by 3 to 5 years. There are other services, where entry age has been prescribed even above 28 years.

Due to the above stipulations, the total service rendered in respect of many employees falls short of 33 years resulting in grant of less than full pension. D..Rate of Pension : The Pension at present is being determined @50% of emoluments paid to the Govt. servant who has completed 33 years of qualifying service when he retires. The ideal should be to grant as pension the emoluments to which the Govt. servant is entitled for last month of his service. However, we propose that full pension after rendering 30

98

99 years of qualified service on Superannuation should be 60% of the emoluments of the last month or the 10 month average whichever is higher. As the age advances, the pensioner is enfeebled and becomes more susceptible to various geriatric diseases. He will have to incur additional expenses towards his upkeep, social obligation, medical treatment etc. We suggest that the quantum of the pension should be revised to 65% of the last pay drawn when one attains the age of 65 and by another 10% at age of 75. E. Pension entitlement. Minimum qualifying service needed to entitlement of pension is presently 10 years. We suggest that the period may be reduced from 10 to 5 years. Our above suggestion is based on the provisions of the CPF Rules 1962 and EPF Act 1952 under which employer’s contribution is paid to the employee on completion of 5 years. Since the pension scheme has substituted the earlier scheme of CPF, the entitlement for pension should also commence on completion of 5 years. F.Minimum Pension : The need for prescribing a minimum pension was always felt by the Govt. Accordingly the following rates of minimum pension have been prescribed from time to time: Date effective from 1.1.1964 1.3.70 1.3.80 1.4.82 1.4.83 1.1.86

Minimum pension Rs.25=00 Rs.40=00 Rs.60=00 Rs.150=00 (inclusive of relief) Rs.160=00 -doRs.375=00

No where has the Govt. indicated or explained the basis on which the above rates have been prescribed. The IV CPC vide Para-10.18 (Page 60 Part-II of their report) quantified the minimum pension at Rs.300/-:

99

100 No logical explanation was provided to the prescription of Rs.300/- p.m. by the IV CPC . The Govt. raised the minimum pension to Rs.375/- without offering again the basis for such quantification. The only inference can be that the Govt. thought it fit to give 50% of the minimum wage as the minimum pension, as the full pension is computed at the rate of 50% of the emoluments. It is, however, to be noted that no Govt. servant retires at the entry point emoluments. Therefore, to compute minimum pension as a percentage of the entry point emoluments is fallacious. In order to become entitled to full pension one has to serve for 30 years and the employees in Group D has a service career spanning a period of over 40 years. The concept of “Minimum Wage” needs no elucidation. Once the minimum wage is quantified that becomes the irreducible amount for sustaining one in the society. Various special needs of a pensioner at the evening of his life make it all the more necessary that he gets at least the minimum amount required to sustain himself. Therefore, the minimum pension will have to be the minimum wage. Minimum wage suggested by us, for reasons, amply expressed in our Memorandum Part I is Rs.10000/-. Accordingly, we suggest minimum pension also at Rs.10,000/-. G. Dearness Compensation : Dearness Compensation for pensioners should be at the same rates suggested by us in Part I of our memorandum in respect of serving employees.

100

101 Chapter III Other Pensions. Family Pension : At present the family pension is given at the rate of 30% of Pay last drawn. However, family pension shall be equal to 50% (60% as proposed by us) of pay last drawn or twice the rates given above, whichever is less and the amount so admissible shall be payable from the date following the date of death of the Govt. servant for a period of 7 years or for a period upto the date on which the deceased Govt. servant would have attained the age of 67 years had he survived. 3.2

The above rule is applicable to a Govt. servant who is not governed by Workman

Compensation Act, 1923, if he dies while in service, after having rendered not less than 7 years of continuous service. 3.3

The prescribed period for which the family pension is payable is as under (1) In the case of a widow or widower, upto the date of death or remarriage whichever is earlier. (2) In the case of a son until he attains the age of 25 years. (3) In the case of an unmarried daughter until she attains the age of 25 years or until she gets married, whichever is earlier. (4) The widowed/divorceed daughter.

3.4

We suggest as under : (a) (b) (c) (d) (e)

(f)

The period of 7 years may be raised to 10 years. The period of 7 years is inadequate for stabilization of a family after the death of a Govt. Servant. The quantum of family pension for the period of 10 years should be equal to the pension the Govt. servant was entitled as per rules. After the expiry of the above 10 years period, the family pension may be reduced to 75%. The family pension shall not be less than the minimum pension of Rs.10,000/- either during first 10 years or thereafter. In the case of a son, the family pension may be allowed upto the age of 28 years now obtaining. This is suggested because the recruitment age has been raised in certain cases to 28 years. In the case of unmarried daughter, the age limit may be done away with. The concession extended to a disabled mentally retarded child to receive family pension until his/her death is subject to the condition that the said disability should have manifested before the

101

102 death of Govt. employee. We suggest that this condition may be removed. 3.5

A Government servant retired on medical invalidation after rendering less than 10

years of service (5 years as per our proposal) gets no pension. We suggest that he should be granted full notional pension (i.e., 60% of his emoluments)/minimum pension, whichever is higher. On death of such a Govt. servant his family should get : a) b)

Full notional pension/minimum pension during first 10 years after his death. 75% of the above or minimum pension whichever is higher, thereafter.

3.6 Extra Ordinary Pension: The 5th CPC in para 135.17 of its report has recommended that regulation of compensation or disabilities categorized under (b) and (c) follows . “II – Cases of disability (100%) resulting in discharge from service” “Normal pension and gratuity admissible under CCS (Pension) Rules, 1972, without insisting on the requirement of minimum service of ten years plus Disability Pension equal to the normal Family Pension, i.e., 30%(as per our proposal 40%) of the basic pay” The Department of Pension & Pensioners Welfare, while issuing orders on acceptance of the recommendation – vide OM No.45/22/97-P&PW(C) dated 3.2.2000 (incorporated in Appendix-3 of Swamy`s Pension compilation) the well meaning recommendation has been altered as follows :“III – Disability Pension – for cases covered under categories `B` and `C`: 3.7 Extra Ordinary Family Pension : “(1)_Normal pension and gratuity admissible under the CCS (Pension) Rules, 1972-Plus-Disability Pension equal to 30% of basic pay for 100% disability.” This has resulted in a Group `D` employee with 6 years` service, who has been invalidated (with 45% disability) and boarded out of service not getting the minimum pension towards `Service element`. This injustice is required to be set right.

102

103 Chapter IV Retirement benefits: Gratuity and commutation of Pension 4.1 Gratuity : Retirement gratuity is paid at ¼ of basic pay for each completed six monthly period of qualifying service subject to a maximum of 16.5 times of the emoluments. There is also a monetary ceiling of Rs.2.5 lakhs. This is applicable to all Govt. Servants who retire on completion of 5 years of service. However, if a person dies in harness his family is granted the gratuity at certain prescribed rates: We suggest that the gratuity may be calculated on the basis of 25 effective days against 30 days in a month. We make this suggestion because the Govt. servant should not be paid at a rate lesser than what is admissible under the Gratuity Act. The ceiling of 16.5 months should also be removed. This is because under existing rules gratuity is reduced in the case of a Govt. employee who has put in less than 33 years of service. Therefore, it is but logical that for a service span exceeding 33 years, the gratuity should be higher. 4.2 Commutation and its Restoration : Central Govt. employees are permitted to commute upto 40% of their basic pension. Those who are absorbed by PSU, the percentage of permissible commutation is 100%. Our proposal is that permissible percentage for commutation may be raised to 50% for all. Earlier when the pension quantum was 50% of average pay, the maximum permissible limit of commutation was 50% of the basic pension. This was reduced to 33.1/3% when the pension formula was revised to 30/80 of the average emoluments. The V CPC revised it to 40%. Now when the pension quantum has been restored to 50%, the permissible commutation percentage should also be raised to 50%. In the light of Supreme Court decision, commuted value of pension is restored on completion of 15 years or on reaching 73 years of age whichever is later. Most of the State Govts. are restoring full pension after 12 years or on reaching 70 years of age. We, therefore, propose that full pension be restored after 12 years, or on 103

104 reaching 70 Years of age whichever is earlier. From the table given below it will be seen that the entire commuted value gets repaid within 12 years.

Sl. No. 1 2 3 4 5 6 7

Details Commutation factor Amount commuted Commuted value received Amount recovered in 12 years Amount recovered in 15 years Excess recovered in 12 years Excess recovered in 15 years

Age next birth day =61 years 9.81 Rs.100 Rs 11,772 Rs. 14,400 Rs. 18,000 Rs. 2,628 Rs. 6,228

104

105 Chapter V: Medicare : Nursing Homes/All Private Hospitals/Diagnostic Centres to cater for the CGHS beneficiaries should be increased in such a way that they will be nearer to the residence cluster of the beneficiaries. While selecting great care should be taken that no beneficiary is required to travel more than 2.5 KM to obtain treatment. In Delhi, the recent approval for hospitals has been done without keeping the extent of beneficiaries` residence localities. Some areas have been completely forgotten and some points have been given more than one referrals. This appears well on paper and satisfies the ministry but in practical terms it is more a punishment for the beneficiaries. 5.2

It is necessary to quote the observations of Justice Shetty Commission on cash

payments in lieu of medical assistance papra-19.120,”the payment of maximum amount every month as medical allowance in lieu of medical benefits is not a solution to the problem but an escape from it. Any such allowance will be only a monetary benefit and it is not realty a medical benefit. 5.3

CGHS : We wish to invite attention of SCPC to the recommendation made by the

FCPC as detailed in Para-140.11 of their report regarding extension of CGHS. Unfortunately,

the

well

intentioned

recommendation

has

remained

still

as

recommendation only. Under some plea or the other, there had been practically no expansion, whatsoever in this regard. A number of proposals had been forwarded to the Government by the All India Central Confederation of Pensioner Associations, Delhi but have been kept in cold storage. The VI CPC is requested to reiterate this important recommendation, suggesting opening of new CGHS dispensaries as per prescribed norms securing clearance from Planning Commission, wherever necessary. 5.4

The MOH&FW (DOH) has issued an order vide, OM No.S-11011/46/95-

CGHS/DII/CGHS (2) dated 1.8.1996, according to which P&T Pensioners, who were not participating in CGHS while in service may not be extended the facility. This had to be challenged in CATs by P&T Pensioners who have won the cases. But the Government has 105

106 filed Writ Petitions in High Courts challenging the decisions of CATs. The Kerala High Court at Ernakulam however, in its judgement dated 31-7-2006 (In WP No.15420 of 2005 (S) has upheld the order issued by CAT Ernakulam. As the P&T pensioners are unnecessarily driven to Courts for getting CGHS benefits without any justification, whatsoever, the SCPC is requested to make a specific recommendation to the effect that P&T pensioners should not be discriminated against in this regard, which is nothing but simple harassment for no fault of theirs. 5.5

Pensioners of Coffee Board and Kendriya Vidyalaya Sanghatan are governed by

CCS (Pension) Rules, 1972. While KVS employees get CGHS benefit while in service, the same has been denied to them after retirement. The OM No.22/1/90-P&PW (K) dated 17.12.1990 of the DOP&PW clearly lays down in Para-1.1 thereof that all Central Government pensioners except Railway Pensioners and Armed Forces Pensioners) who were eligible for CGHS facilities while in service are eligible for availing CGHS facilities after retirement. In the case of Coffee Board employees, they get the benefit of CS(MA) Rules,`44 while in service (through AMAs, with monetary limit on amount of reimbursement) they do not get any medical facility after retirement. Even the Fixed Medical Allowance , which they were getting all along after it`s introduction has been suddenly withdrawn with effect from April, 2006. This is sheer injustice! (KVSRA OA 113/2003Doj. 30.12.2003CAT Hyderabad) Note: The OM No. 22-1/90/P&PW (K) dated 17.12.1990 quoted in CAT Bangalore Bench case i.e. Nanjundiah vs. Addl. Directore CGHS Bangalore is actually the Ministry of Finance letter O.M.No. 12-165/90-Coord dated 21.1.1991 enclosing the OM of the Department of P &PW. CGHS pension brochure finalized in consultation with the Department of health. PSU Absorbee pensioners have also been denied CGHS facilities after one third of their Pension (commuted) has been restored. As per Supreme Court’s judgment, they have to be extended all the benefits as are admissible to central government pensioners. No doubt, CATs have decided the issue in favour of the pensioner applicants. But the government has filed Writ Petitions in the High Courts. Justice may be done to these

106

107 pensioners (PCh/12/04-7) (PCh/12/05-10) (OA:146/2005:cat Ba`lore: DoJ:22-11-2005-R. Viswanatha Rao –Vs.- Uol). 5.6

Till such time, expansion of CGHS takes place, the Government may permit the

pensioners to avail In-door medical facilities at such of those private hospitals as are recognized by Government of India to its serving employees under the CS(MA) Rules, 1944 and permit reimbursement of medical expenses in full by the departments to which the pensioners belonged to before retirement. 5.7

The practice of obtaining declarations from CGHS beneficiaries to the effect that

expenses incurred or charged by recognized private hospitals in connection with diagnostic procedures or hospitalization in excess of the package rates during periods beyond the currency period of the Memorandum of Agreement with the hospitals by the CGHS authorities should be discontinued. It is the duty of the CGHS authorities to either renew or enter into fresh Memorandum of Agreement before expiry of the date of currency of agreement. The beneficiaries, particularly the pensioners, should not be penalized by making them pay the difference in charges after obtaining declarations as mentioned. 5.8

P&T Dispensaries: (Redesignated as `Postal Dispensaries`-vide D.O. Posts No.2-

5/2000/Medical dated 10-10-2000). 1. As no hospitalization facilities are available to beneficiaries attached to Postal Dispensaries, all of them should be converted into CGHS dispensaries. Till then, CS(MA) Rules, 1944 benefit should be extended to the beneficiaries for In-door treatment. 2. FCPC, in Para-14-0-15 of its report, has recommended upgradation of P&T dispensaries to the level of CGHS or otherwise to allow P&T pensioners to join CGHS like any other CG pensioners. (PC/8/06-237). (c)CS(MA) Rules, 1944: Should be extended to pensioners living in non-CGHS stations or areas not covered by CGHS. As recommended by FCPC, vide para140.18 of their report, benefit of CS(MA) Rules, 1944 should be extended to

107

108 pensioners in non-CGHS areas at least to the extent of full reimbursement of expenses incurred for hospitalization in a Government hospital or hospitals recognized under CS(MA) Rules, `44 for serving employees or those recognized by State Governments for such purposes for their employees. To cite examples, in the city of MYSORE, a number of Hospitals have been recognized under CS (MA) Rules. `44 for serving central government employees. But pensioners can not avail the benefit merely because there is no CGHS dispensary there. Similarly, in UDUPI though the work-famous “Kasturba Hospital” is recognized under CS (MA) Rules,`44 for serving employees, the pensioners do not get the benefit merely because there is no CGHS dispensary there and CS (MA) Rules are not applicable to them. Several cases of claims for reimbursement of medical expenses incurred by pensioners living in non-CGHS areas have been decided in favour of pensioners by the CATs and even the High Court of Gujarath at Ahmedabad. SCPC is requested to make suitable recommendation in this regard in order that even if CGHS dispensaries are not opened, for whatever reasons they may be, the C.G pensioners may avail medical in-patient facilities (in hospitals recognized under CS(MA) Rules,`44 for serving employees) and get reimbursement of expenses from the departments to which they belonged. (d) It is a fact that ESIC medical scheme caters for 35 million beneficiaries in the private factory employment sector. If the ESI system with a network of 144 hospitals 42 Annexes, 1400 dispensaries and tie up with 2041 private medical practitioners besides with a large number of super specialty hospitals can provide Medicare, why should not CGHS/CSMA cater for the Medicare needs of 52 lakhs of employees, 38 lakhs of pensions spread all over the country like ESIC beneficiaries?

Sixth Pay Commission may kindly examine the feasibility of

improving present CGHS/CSMA formats to ensure medicare to 90 lakhs of Central Govt. employees/ex employees. There is absolutely no need to scout for alternate method. The recommendation of the 5th CPC of suitably amending CS(MA) rules for providing indoor medical attention to a very small segment of Central Govt. pensioners residing in non CGHS areas should not pose any insurmountable hurdles. It is unfortunate that the nodal Ministry, viz. Ministry of

108

109 Health and Family welfare, has accepted the need for medicare to 60 plus retired personnel that they should not be deprived of the medicare and the judiciary have taken cognizance of this principle, there should be no hesitation in amending the CS(MA) for providing the retired employees limited indoor attention. 5.9

Fixed Medical Allowance (FMA) : i)

The present FMA of Rs.100/- p.m. should be increased to Rs.500/- p.m.

ii)

The FMA should count for purposes of Dearness Relief so that its value will not get eroded due to inflation.

iii)

FMA is not being paid to KVS pensioners. KVS is an autonomous organization fully financed by the Department of Education under the Ministry of Human Resources Development, Government of India. While in service, the staff and teachers are getting Medicare depending upon the location in CGHS area or under CS (MA) Rules dispensation, after retirement they are denied both CGHS facilities as well as FMA-a case of sheer unreasonable treatment to the ex-employees of KVS.

iv)

Similarly, though “Tea Board” pensioners have been granted FMA, vide OM No.23/Est/Med/94 dated 11.8.2000 of Tea Board, Calcutta, pensioners of Coffee Board which is also under the Ministry of Commerce and Industry, Department of Commerce under Government of India have now been denied the same though they were getting it earlier. (PC/10/00-197).

v)

FMA should be sanctioned observing uniform distance-criterion from the dispensaries for CGHS/RELHS/ECHS beneficiaries.

vi)

The FMA should be sanctioned to all pensioners who are not members of CGHS./RELHS/ECHS irrespective of their place of residence.

The

jurisdiction of dispensary should be uniform for all schemes viz. 2.5 kms as laid down by Ernakulam High Court decision dated 22.11.2002. It may also be noted that the Punjab Pensioners are getting FMA at the rate of Rs. 300 p.m. Assam pensioners at Rs. 200, Arunachal Pensioners, at 200, Chandigarh Pensioners at Rs. 250 and Meghalaya Pensioners at Rs. 200. 5.10.

RELHS-97 :

109

110 a)

Beneficiaries of the “Retired Employees Liberalised Health Scheme” in the Railways do not have the facility of availing medical services in private recognized hospitals and diagnostic centres nearest to their places of residence. While serving employees do not feel its necessity as they will normally be residing in government quarters, which have the Railway hospitals nearby, the retired employees are living in far flung areas of cities. To cite an example, only two private hospitals have been recognized in Bangalore with an area of 368 Sq.Kms. While 20.6% of Central Government pensioners, other than defence pensioners, have 36 private recognized hospitals and 15 private recognized diagnostic centres under the CGHS, 27.8% of Railway pensioners have only 2 private recognized hospitals. The hardship, particularly for the old and infirm pensioners residing in far flung areas of cities in reaching railway hospitals may very well be imagined. It is requested that the SCPC may kindly recommend that more private hospitals and Diagnostic centres may be recognized for RELHS beneficiaries, so that no beneficiary may have to travel a distance of more than 8 kms in emergencies.

b)

The other difficulty is regarding non-availability of credit facilities for the Railway pensioners in the private recognized hospitals. Beneficiaries of the CGHS have this facility. It is requested that Railway pensioners who are beneficiaries of RELHS may also be extended facilities like CGHS beneficiaries. Even in the case of ExService men contributory health scheme ECHS in April, 2002 for medicare of Ex-servicemen and their families, it is laid down “if hospitalization is required the hospitals will be paid directly by the organiasations”.

c)

There is yet another problem for Railway pensioners. Patients with cardiac problems are referred to the Railways Hospital at the H.Qrs Station, even though very good private hospitals with excellent facilities are available at the same station. To cite an example, in

110

111 Bangalore, Railway pensioners are being referred to the Railway Hospital at Chennai even in emergencies It is a well known fact that cardiac emergencies have to be attended within the “golden hour” i.e. three to six hours. The policy has to change if the intention of the Govt. is really to render the required medical assistance. d)

This scheme should also be kept permanently open like all other medicare scheme available to other Central Govt. pensioners.

e)

The rate of contribution should be 0.5% of salary/pension of the beneficiaries and 1.5% by the User departments.

f)

Pay ward facilities should be allowed to persons attending patients in Railway hospitals.

g)

Diet charges should not be recovered from all pensioners and family pensioners in Railway Hospitals.

h)

RELHS 90 should be an open ended scheme like CGHS, ECHS, ESIC etc.

i)

The existing Railway pensions in the old scheme of contributory health scheme should also receive Medicare if need be by reference to referral hospital and should not be denied treatment on the plea that they are not in RELHS 97

j)

Presently the beneficiaries RELHS 97 are denied the facility of treatment in Private Hospital en in case of emergencies. Locking period should be removed if need be. The Railways can examine the feasibility of adopting hospitals already approved

by CGHS etc.

schemes. “Locking period” conditions smack of Commercial approach.

111

112 Chapter VI Miscellaneous

6.1

Casual Labour Contingency Paid Employees : At present Casual Labour/contingency Paid employees are allowed to count their

service towards pension @ 50% of the total period falling between acquiring the temporary status and regularization and full service thereafter. 6.2

The above benefit is also subject to further condition that such employee should

be regularized an absorbed against a regular post. The operation of this condition is so harsh that there are many cases in which the entire service is rendered non pensionable because the employee may be retired/retrenched/die before such regularization. 6.3

We, therefore, propose that the 50% of service before acquiring temporary status

or full service after acquiring temporary status irrespective of whether he was regularized or not should count towards pension. 6.4

The employee have to remain for long durations without any regularization and

are deprived many amenities which a regular employee gets. Not to treat their service pensionable for a considerable period leave them with very meager pension and in some cases with no pension. This is against the principle of social justice and therefore our above suggestion should be considered by the V Central Pay Commission. 6.5

Interruption causing forfeiture of service for pension: The existing provisos defining interruptions in service causing forfeiture of past

service for purposes of pension are quite antiquated, unnecessary and unreasonably harsh which should be removed from the statute book. In formative years when British authorities were recruiting Indians in their administrative services, it was noticed that during sowing and harvesting seasons, a large number of employees used to go back to the fields without any regular leave etc. As a deterrent, the rules regarding interruption in

112

113 service had been legislated then. Since most of the employees have now lost their rural roots, such frequent and recurring interruptions are no longer there. Interruption as and when rarely caused is due to reasons mostly beyond the control of an employee. 6.6

We, therefore, propose that instead of treating interruption to cause an automatic

forfeiture of past service for pensions, it should be dealt with under CCA Rules. The provision causing forfeiture of service for pensioner purposes on account of interruption may, therefore, be deleted. 6.7

Parity in pension to pre-2006 retirees. This issue has been delt with in detail by the 5th CPC in para 137.7 to 137.16 in its

report. The 5th CPC has given a specific formula for evolving parity to pre-1986 retirees. We propose that a formula may be suggested by the 6th CPC in respect of all pre-2006 retirees which would obviate any necessity for hiking the pension of the pre-2006 retirees to 50% of the minimum of the revised wages of the post held by them as complete parity with post 2006-retiree will have been ensured. 6.8

Extra ordinary Family Pension. Without reproducing the existing rates for Extra

Ordinary family pension, we submit that these rates are not only inadequate but are quite cumbersome. Different rates have been prescribed if the widow is childless or having children. Distinction has also been made in respect of Govt. servant holding a pensionable/non-pensionable post. The rationalized approach would be to grant the extraordinary family pension at the rate of emoluments last drawn till the widow/widower either dies or remarries or the child otherwise becomes ineligible as per the existing rules. Had the Govt. servant not met his death while discharging his duties he would have not only got the pay, he would also have earned increment/promotion. Therefore, to pay by way of extra ordinary family pension at the rate suggested by us would at least ensure that there is no loss in the family income on the death of the Govt. Servant. Moreover, our above suggestion is also to contra-distinguish the case of death of a Govt. servant in harness and that of death while performing duties.

113

114 6.9

Housing : Central government employees in occupation of Govt. quarters on

retirement are constrained to hire private accommodation at exorbitant and prohibitive rental. They are per force to spend a sizeable portion of the pension on rent alone. While in services, though they are entitled to get house building advance etc., most of them are unable to avail the facility and construct house for the salary income they earn is incapable of making the both ends meet. It is, therefore, necessary that a provision for reserving a percentage of the number of residential units constructed by the State/Central Housing Boards and Corporations, for outright purchase of allotment on instalment basis to pensioners. We, therefore, suggest that 10% of the total units constructed by the State Housing Boards, Central Housing Corporations etc. to be reserved for pensioners. 6.10

This apart, dormitory type single room tenements with common dining hall,

library, cultural centre, auditorium, basic medical facility etc. may be constructed at the outskirts of the cities and allotted to pensioners on payment of a reasonable amount. 6.11

Until the above suggestions accepted and implemented, HRA may be granted to

the Pensioners on the same rates as is given to serving employees. 6.12

Travel Concession : Senior citizens who have attained 65 years of age are given 30% concession in

rail fare at present. We suggest that retired Govt. servant may be allowed the facility of travel concession once in 4 years to any place in India. 6.13

Income tax Exemption The 5th CPC vide para 167.12 has recommended that pension should be net of tax

and the Department of pension should pay lump sum amount to the Department of Revenue. Pension being a social security measure and is abysmally low even to meet the old age requirement of the pension, it is exempted from the levy of tax in many countries. We request that the 6th CPC should strongly recommend to the Government to exempt the pension from the purview of taxation. 6.14

Resignation to be treated as retirement in certain cases.

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115 Resignation is tendered by as Government Servant in varying circumstances. It is felt, therefore, that resignation need not always result in forfeiture of past services (Rule 26 of Pension Rules and denial of pension. An objective view is required to be taken by the appointing authority in the case of all those who tender resignation after completion of 20 years of service. Such resignation may be treated as voluntary retirement and benefits extended accordingly. In this connection, we may cite the following decisions of the judiciary, 1. CAT Mumbai full bench O.A.No. 1384/1985 decided on 8.7.1997 2. CAT Ahmedabad O.A.No. 498/2002 decided on 18.3.2004 3. CAT Jabalpur O.S. 623/1991 decided on 13.10.1995. 4. Bombay High Court WP No. 615/1996 and W.P.No. 2586/1997 deided on 28.2.2002 6.15

Even 5th CPC in para 133.79 had recommended that terminal gratuity at difference

rates be paid to those who resign after putting in certain years of service and resignation after 20 years of service may be treated as voluntary retirement and pension may be paid accordingly. We, therefore, request the Commission that the above recommendation may be reiterated. 6.16

Additional pension for addl. Service: The 5th CPC in para 133.65 of the report has recommended that additional pension

at the rate of 0.5% of the emoluments for each year of additional service in excess of 33 years be paid to the Central Govt. Employees. We request that the Commission may kindly reiterate this recommendation, as the Govt. had not accepted the 5th CPC suggestion in this regard. 6.17

Uniform Rate of family pension. The 5th CPC in para 134.7 of its report has recommended that the family pension

may be made at a uniform rate of 30% of pay for all categories of employees. In respect of pre 1986 retirees the Government applied the varying rates and then added difference between 30% of pay and add what is admissible at varying rates while upgrading the family pension. This procedure of fixation was neither according to any rules nor in conformity with the recommendation of the 5th CPC. The Sixth CPC may kindly look into this matter and recommend that the family pension be fixed at the rate of 30% of pay in

115

116 respect of pre-1986 retirees before it is updated. We also request that the family pension may be determined at the revised rate of 40% of pay. 6.18

Ex-gratia payment to State contributory PF retirees. The Govt. has not granted the ex gratia payment as recommended by the 5th CPC

in para 137.43 to those who had retired voluntarily or who were retired on invalidation, though they had completed 20 years of qualifying service. The Sixth pay Commission may kindly consider their case and to extend them the payment of ex gratia. 6.19

There are certain employees who are in the CPF Scheme but could not opt for the

pension scheme in the year 1986. These are mostly women employees employed in Atomic Energy Commission who could not make up their mind as to whether they could render the requisite number of service necessary for grant of full pension. They may now be allowed to revise their option. 6.20

Interim relief to employed Family pensioners: Interim relief was not granted to

the Family pensions who were employees, even though they do get the Dearness relief. The dearness relief as per F.R. 50-A of pension rules was earlier not admissible to those who are employed but still in receipt of family pension. The 6th Central pay Commission may kindly look into this matter and recommend that the employees who are in receipt of family pension are also paid the interim relief on family pension as well as and when it is sanctioned. 6.21

Pension Act. 1871 (Act 23 of 1871) This Act was promulgated on 8th August, 1871. The CCS (Pension Rules) 1972

was notified in under the powers vested to the president under proviso to Article 309 of the Constitution and not under the above Act of 1871. 6.22

This Act is a feudal left over of the former Colonial Power. The Gajendra Gadkar

Law Commission had advised the government of India in 1972 to change the Pension Act 1871, but nothing was done. S/s V.N. Gadgil and Parulekar the then M.Ps moved a substitute bill in the year 1981 in the budget session of the Parliament as a replacement of the Pension Act 1871. This was discussed on 16th and 30th of April of 1981. Sri Venkatasubbiah, the then Minister of State Home Affairs gave an assurance of bringing in an amendment to the Pension Act of 1871. Neither the Monitoring Committee of Parliament on Assurances nor the Government has taken any steps in revising this Acr.

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117 The following sections of the said Act violate the Constitution of India:a) Section 4: No Civil Court shall entertain any suit relating to any pension. b) Section 6: Shall entertain such suit only on a receipt of certificate from a Collector that the case may be tried, but the court shall not any order by which the liability of the pension to the pension is affected. The following sections go against the CCS (Pension) Rules, 1972:a)

Section 5: The claim for pension to be made to the collector/Deputy Commissioner. b) Section 8:- The pension payments to be made by the Collector/Deputy Commissioner. c) Section 15:- confer powers to the Central Government to made rules only to provide for nominations under Section 12A. Besides this certain sections like Section 7, 9 and 13 have become obsolete in the light of the above we request the 6th CPC to suomotto examine this aspect and make suitable recommendations to the Government for repeal and revision of the said Act. 6.21

Pension adalats The system of Pension Adalat was introduced initially by Department of Pension

and Pensioners Welfare and later on adopted by Railways, Defence and P& T Departments. The V CPC in para 139.17 had recommended that this system is very effective in finalizing disputed cases of pensions and should be introduced in all the departments. These adalats should also function for settling the cases of field formations and meet atleast once in quarter. The representatives of the Pensioners Association should be allowed to present the cases of the concerned pensioner who may not be conversant with the rules. The above recommendation which were not mandatory has not been implemented. We therefore request the 6th Pay Commission that it should be made mandatory on all the ministries and departments of India to conduct these adalats periodically and without fail. We also suggest that these adalats may be conducted at different levels with the following frequency:i) Divisional Level ii) Zonal Regional Level iii) Head Quarters Level iv) Minister of State in DOPT Level 6.22

Once in 3 months Once in 6 months Once in a year Once in 2 years

Administrative Tribunals.

117

118 There is a government move to amend the Administrative Tribunal Act to provide for the abolition of tribunals and to withdraw the power to examine contempt against implementation of its orders. We request the 6th CPC to advise the government not to go ahead with this move.

6.23

Anomalies Committee Anomalies do creep in when recommendations of any pay commission are

implemented. For this purpose there is already a system of constituting joint anomaly committee to look into the anomalies arising after implementation of recommendation of commission for serving employees under the forum of JCM. Such anomalies in respect of pensions have not been resolved because no such anomaly committee has been constituted in respect of pensioners. To illustrate this we give below the following true instances of unresolved anomalies:i)

Clarificatory order no. 45/86/97- P&PW (A) (Pt.) dated 11.5.2001 This OM was as follows: “Pension of all pensioners irrespective of their retirement shall not be less than 50% of the minimum pay w.e.f. 1.1.1996 of the post held by the pensioner – shall mean that the pension of all pensioners irrespective of their date of retirement shall not be less than 50% of the corresponding scale as on 1.1.96 of the scale of pay held by the pensioner at the time of superannuation/retirement” The clarificatory order cited above had been challenged by some affected pensioners in the Delhi High Court which directed that the above clarificatory order may be quashed. The issue was taken by the government in the Supreme Court which dismissed the Special Leave Petition. In spite of this the Department of Pension and Pensioners Welfare has not receded its order dated 11.5.2001.

ii)

Anomaly in pension of those who retired between 1.1.86 to 30.9.86 : The above category of pensioners have been put into a disadvantageous

position vis-à-vis their counter part i.e pre- 1986 pensioners with varying

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119 monetary loss as because in the latter’s case the pension were determined on the basis of notional pay being treated as average emolument where as in the case of former retirees the average emoluments were determined on the basis of 10 monthly average which included the period in which they had drawn the prerevised pay. 6.24

We therefore urge upon the 6th Pay Commission not only to recommend

rectification of above and such other anomalies details of which will be submitted by us later on. But they should also recommend setting up of anomaly committee for pensioners in the forum SCOVA and also in forum of JCM 6.25

Date of Effect We have requested the Commission in Part I of our memorandum that the

recommendation of the Commission be implemented with effect from 1.1.06 both in respect of Pay Scales and allowances. Accordingly we

request that the

revised

pensionary benefit may also be given effect to from 1.01.2006 6.26

There are certain matters which we have not included in this memorandum

relating to past pensioners. These issues have been dealt with in the memorandum submitted by the Steering Committee of Pensioners organizations.

O0o

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INDEX

Chapter No.

Name of the Chapter

Page Number

I

Introduction

02-10

II

Pension entitlement

11-14

III

Other pension

15-16

IV

Retirement benefits – Gratuity and computation of pension

17-18

V

Medicare

19-25

VI

Miscellaneous

26-33

120