NFIR reviews 7th Pay Commission Recommendations on the impact of the financial implications with details of workings if implemented.
National Federation of Indian Railwaymen discusses about the financial implications if 7th Pay Commission is implemented
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055
Affiliated to :
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)
No. IV/NFIR/7th CPC/CORRES (R.B.)
The Addl: Member (Budget),
Sub : Impact of the recommendations of 7th CPC- reg.
Ref : AM(B) note No. 2015-B-265 dated 23/12/2015 addressed to GS/NFIR.
With reference to the note received from AM(B) dated 23/12/2015 on the subject relating to the implementation of the recommendations of 7th CPC on Railways, the Federation at the outset conveys as follows:-
During discussions with the Hon’ble MR and the Board (CRB, FC, MS) on 23rd December 2015, the NFIR General Secretary has expressed that there is all-round unhappiness on 7th CPC recommendations as in many cases the ‘Take Home Pay’ is either very marginal or less than what is received by the employee now. The Federation also disputed the estimated financial implications (Rs.28,500 crores) and said that the estimated expenditure has been exaggerated. It was also brought to the notice of the MR the retrograde recommendations of 7th CPC, while the case of Railway employees of various categories was not dealt adequately and the Railway Ministry has unfortunately not apprised the inadequacies of Grades Pay and Pay Band of 6th CPC to the Chairman, 7th CPC.
2. As desired vide note dated 23/12/2015, the Federation furnishes the following details as Annexures to this letter.
(a) Table –I gives the position of 6th CPC minimum pay in Pay Band & Grade Pay (PB-I to PB-3) as on 01/01/2016.
(b) Table-I (a) explains the 7th CPC minimum pay from Level-1 to Level-12 of the Pay Matrix . [A comparison of Table-I with Table-I (a) reveals that the net benefit is marginal at Level-1, minus at Level–2. However, there may be substantial increase from Level- 7 and above. If Income Tax deduction takes place, the increase will fall.]
(c) Table–II indicates 6th CPC minimum pay in GP+ Pay Band without HRA.
Table-II (a) gives 7th CPC minimum pay without HRA (staff in occupation of Railway quarters are not entitled for HRA).
[A comparison of Table-II with Table-II (a) shows minus ‘Take Home Pay’ for employees of Level- I to Level-6 of Pay Matrix and equally marginal increase to those in Level-7, 8 & 9 of Pay Matrix. Again in Level-I 0 the ‘Take Home Pay’ will be less than the present amount. Overall position will be either “minus” or “marginal increase”. The Income Tax deduction would further worsen.]
(d) Table–III shows the approximate 6th CPC pay of employees after drawal of 10 annual increments.
Table III (a) provides information pertaining to 7th CPC Pay (approx) for Staff in Level-1 to Level-12 (Pay Matrix).
[A comparison between Table-III and Table-III(a) reveals that there will be marginal increase to those in Level-I to Level-6. Although there will be an increase of more than 2400 to those in Level-7 to Level-12, the Income Tax deduction would reduce their ‘Net Take Home Pay.’
(e) Table-IV gives position of 6th CPC Pay of staff (without HRA + 10 annual increments – approx) as on 01/01/2016 Table-IV(a) explains 7th CPC Pay without HRA as on 01101/2016.
[A comparison of Table-IV with Table-IV (a) reveals that those in CPC Pay Matrix Level-I to Level-12 will draw minus salary. With Income Tax deduction, the position may be more worse.]
(i) In the case of employees living in Railway Quarters (nearly 40%) the financial implications of HRA will be Zero.
(ii) The unfilled vacancies are approximately over two lakhs since the last two years. The costs of these posts have already been saved by the Indian Railways.
(Dr. M. Raghavaiah)