Principles for deciding Pay Scales by 7th Pay Commission as Suggested by Indian Railways Technical Supervisors Association (IRTSA)

Principles of Determination of Pay and Minimum & Maximum Wages Submitted to 7th CPC 

Presentation on Principle of Pay determination & Minimum and Maximum Pay - Compiled by Er. K.V. Ramesh, Senior JGS/IRTSA

Principles of Determination of Pay & Determination of Minimum & Maximum Wages Submitted to 7th CENTRAL PAY COMMISSION

Minimum Wage as per 6th CPC method

Pay in Pay Band + Grade Pay + % DA + Compensation factor based on rise in NNP at factor Cost.

Calculation of compensation factor 

Year	Per Capita NNP at factor cost At constant price	Increase over previous year
2005-06	26015	1872
2006-07	28067	2052
2007-08	30332	2265
2008-09	31754	1422
2009-10	33901	2147
2010-11	36342	2441
2011-12	38037	1695
2012-13	39168	1131
2013-14*	41046	1878
2014-15*	42924	1878
% Increase of NNP at factor cost on Constant Prices for the period of ten years		65%

* Assumed figures as per average increase

Proposed Minimum Pay w.e.f. - 1.1.2016

Minimum Basic Pay + DA 140%+ Compensation factor 65% of BP + DA
Minimum Basic pay after VI CPC	Rs.7000
Projected DA 140% (as on 1.1.2016)	Rs.9800
BP+DA	Rs.16800
Compensation factor (65%)	Rs.10920
Proposed Minimum Pay	Rs.27720 or Rs.28000
Proposed Number of times increase of BP	3.96

Proposed Minimum & Maximum Pay based on post 6th CPC formula

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

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

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

Intermediate Pays shall be fixed in the same way.

Upgradation shall be granted to specific categories on functional & other related justification.

Determination of Maximum Pay First & then arriving at Minimum Pay in the ratio of 9:1

Maximum Pay shall be fixed first as per rise of NNP and then the Minimum pay in the ratio of 9:1 thereof and the Intermediate Pays shall be fixed.

Maximum Pay = Rs.80,000 x Compensation factor based on rise in NNP at factor Cost. = 80000 x 3.96 = Rs.316800 or Rs.3,20,000.

Therefore, Minimum Pay works out to be 

Rs.320000/9 = 35555 or Rs.35500.

Rate of Increments

Annual Increment:- Rate of annual increment in each grade may please be granted @ 5 per cent.

Increment on Promotion:- During Promotion minimum 10% increase in Basic Pay has to be granted.

Fixation of Pay on Promotion at par with Entry Pay:- Pay on Promotion should be fixed at least at par with Entry Pay in the Revised Pay Structure.