NJCA Reviewed the recommendations of the Pay Commission as a preliminary exercise

National Federation of Indian Railwaymen
Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers Federation (ITF)


The General Secretaries of
Affiliated Unions of NFIR

Dear Brother,

Sub: Seventh Central Pay Commission’s Recommendations – reg.

By this time, I hope you would have downloaded the Report submitted by the Seventh Central Pay Commission to the Government from the pay Commission’s website and studies the same.

The leaders of National Joint Council of Action met at New Delhi today at 11.00 hours on 20-11-2015 and reviewed the recommendations of the pay commission as a preliminary exercise. It has been felt that the pay Commission has rejected our demand for minimum wage of Rs.26000/- p.m. The minimum Salary of Rs.18000/- recommended by the pay Commission is not only very meagre (increase of Rs.2250/- only) and is not based on any rationale. The so called publicity of 23.55% hike in the salary of Central Government employees is in fact incorrect as the increase of pay would be 14.29% only i.e less than half of the pay hike given by the Government during 1996 (Vth CPC) and about one third of pay hike from January 2006 (VI CPC) when the percentage hikes were given to the extant of 31 & 54% respectively as admitted by the Chairman VIIth CPC under para 4.2.9 at page 63 of the report. The cogent case placed before the pay Commission by us has been mutilated. It may also be noted that take home pay of the employees as a result of implementation of VIIth CPC report will be less in view of following factors:-

(a) Deduction towards Central Government employees Group Insurance Scheme – Rs.1500/- per month (as per VIIth CPC recommendation),
(b) Deduction @ 10% of pay i.e.1800/- towards Pension Subscription (NPS) every month,
(c) Income Tax deduction.

A Statement showing the adverse impact of VIIth CPC recommendations prepared by the NJCA is enclosed for guidance.

Recommendations of 7th CPC provide for higher pay hike to the higher officials but only meager sum to the low paid employees i.e. low paid employees have been given lower multiplier factor of 2.57 limiting pay upto Rs.18,000/- p.m. whereas senior Officials have given multiplier factor of 2.78/2.81 to the Secretary level Officers and above by giving them pay upto Rs.2,25,000/- & Rs.2,50,000/-. It will provide financial benefit of Rs.2250 p.m. to low paid employees whereas higher officers will get minimum benefit of Rs.45,000 to 50,000 p.m.It is also relevant to point out that the staff Side JCM demanded ratio between the minimum wage earner and higher wage earner to be brought down to 1:8 in consonance with the directives/principles of the constitution of India. Here the 7th Pay Commission has widened the disparity and has made the same to 1:14. Also the existing 52 Allowances have been abolished unjustifiably. Notably the rates of existing House Rent Allowance (30,20 & 10) have been reduced to 24,16 & 8 percent.

The National Joint Council of Action has decided to observe Black Day on 27th November 2015 wearing Black Badges all over the country to protest against the perverse recommendations of the VIIth Central Pay Commission. All the affiliates are advised to communicate with the Railway employees of all categories to show their anger against the recommendations of the Commission. Report on the activities of 27th November, 2015 may be sent to the Federation immediately.

DA/As above

Yours Faithfully,

General Secretary

Source: NFIR

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