Monday, April 14, 2008

circular no. 36

Dear Comrade,
Sent herewith is the circular No. 36 of the ITEF.


Maniashinath Bhawan A/2/95 Rajouri Garden

New Delhi. 110 027.

Phone: 2510 5324 : 65431807Mobile: 98110 48303Fax: 2510 5324

E mail:

Circular No. 36/08                                                                               Dated:14.04.2008


Dear Comrades,


            The general formulations of the Pay Commission had been the subject matter of concern and agitation amongst the mass of the Central Govt,employees throughout the country. This was manifested in the form of spontaneous demonstrations.  The discrimination meted out to the employees vis-a-vis the GroupA Officers is unprecedented.  While the minimum wage granted is actually only Rs.5740/- it is propagated to be Rs.6660/-.  While the fitment formula hovers around 28%[in some cases even less than 15%] it was advertised as 40% and conveyed through the media as a bonanza.  The media, which is controlled and manipulated by the corporate barons of the country willingly and knowingly propagated this lie to create a wrong impression in the minds of the rank and file of our members.  Through the Confederation and ITEF website we had endeavoured to dispel the misgiving in this regard.  The Press statement issued by the Confederation on 25th March, 2008 and the subsequent circular letter carried all the negative features of the Commission's recommendation.  We are thankful to most of our state units who used the information to reach out our comrades.


            The Confederation leadership had been in constant touch with the Secretary, Staff-side, JCM.  The Secretary Staff side has now submitted a note to the Cabinet Secretary, which has covered most of the areas, where injustice has been meted out.  The 15ILC norms are not accepted or adhered to.  The 5th CPC formulation of increase in the Net National Product is also not taken as base for determining the minimum wage.. The parity with PSU was also discarded. All these with the only objective of denying a wage revision in real terms to the CGEs.  Normally, the pay scales are constructed on a common multiplication factor related to the pre-revised minimum wage.  The 6th CPC has constructed the scales of pay applying different multiplication factors for different grades of Officers and employees.  The more you read the report, you will be able to discern the biased attitude it has taken against the employees.  The report is fully in consonance with the neo-liberal economic policies of the Govt. of India and designed to let in exploitation through contract labour of the poor in Government sector as is presently the order of the day in private sector.  By banning further recruitment in Gr.D cadres, casualisation and contractorization of unskilled jobs, like Security, sanitation, messengering etc has also been ensured.  Confederation has written to the Staff Side Secretry of the need to include some vital issues in the note for discussion with the Govt copy of which is enclosed.  The Staff Side is scheduled to meet on 25th April, 2008 and perhaps the negotiation with the Govt might commence in May, 2008.


            The ITEF has prepared a note to indicate the manner in which the different cadres and grades will be transformed if the 6th CPC recommendations are acted upon.  The note is appended.  We request you to kindly go through this note and make suggestions for improvement.  Our final formulations will be discussed and decided at the Working Committee meeting slated to be held at New Delhi on 29th April, 2008.


            We request you to hold meetings and conventions to apprise our members of various aspects of the 6th CPC report to prepare them for an eventual struggle which appears inevitable and unavoidable at this juncture.


            As you are aware, despite our repeated efforts, the allocation of intra structure funds has not been altered, nor did the Board accede to our suggestions.  We have been informed by our Circles that the Joint Commissioners in many charges have now issued orders for the supply of mobile connection to whom they like without any basis, as we have apprehended.  We have, therefore, decided to call upon our members to reject this offer and ensure that the reimbursement of mobile charges not accepted by any of our members till such time the facility is extended to all our members.


            With greetings


Yours fraternally,




Secretary General.


The modification required to be made to the report of the 6th CPC


1.                   A.The minimum wage

The computation of minimum wage of the 6th CPC is not acceptable for the following reasons in brief..

i.                     Prices applied for various commodities (included in the basket) is the wholesale price as increased by 20% which is not the norms prescribed by the 15 ILC;

                                           ii.      The exclusion of 25% for meeting expenditure connected with social obligation like marriage, education of children, recreational needs etc. is on the untenable grounds.

ii.                   The exclusion of 10% for the housing requirement (on the ground that HRA is given separately) is not correct as HRA is not a full reimbursement of the expenses incurred by the employee.

If these corrections are carried out the need based minimum wage will be what is computed by the staff side.


B. Even as per the formulation adopted by the 5th CPC the minimum wage works out to Rs.7400 i.e. by application of the percentage increase of the net national product which comes to 56.2%

C. The Commission, without assigning any reason has rejected the demand of the staff side for parity in the minimum wage with what is obtaining in certain specified public sector undertakings.  

D. For the above reasons, the minimum wage need to be worked out afresh and the same reflected in all the pay bands appropriately by applying the resultant multiplification factor as was done by the 5th CPC. 

2.                  Fitment formula

Rejection of point to point fixation, (which is normally adopted by the PSUs in their wage revisions as fitment formula) is for no sound reasons. There is no 40% hike as propagated by the Commission..  By withdrawing the benefit of merger of DA the actual rise is between 15 to 28% . Our demand in this connection is as under:- 

(a)    The merged portion of the DA should be taken into account to arrive at the revised basic pay and Grade Pay in each case.

(b)    Since quite a number of pay scales have been merged together (especially in Gr.B & C cadres)the senior employees who were in higher scales of pay and who have put in large number of years of service progressively get reduced benefits.

(c)    Taking these two factors into account we suggest that the fitment formula as suggested by the Commission may be amended to incorporate the following:

" subject to the condition that the pay and grade pay so fixed is not less than 2.625 times of the pre revised basic pay." 

`                                               The multiplication factor of 2.625 is the same as is applied in the case of the entry grade pay band and grade pay in the case of Gr.A officers. This clause will make good the loss of benefit one might suffer due to the exclusion of the DP from the computation process of fitment formula. 

               3.         Rate of increment.  

                                                (a)    The rate of increment suggested by the CPC is to be raised to 3.5% for the following reasons:


(i)      The 2.5% is below the existing rate of increment in many grades.

(ii)      Due to the compounding factor, over a period of ten years, this might rise to 4.5% still less than the prevailing rate of increment in the PSUs which is 5% and above.


(b)  The condition prescribed i.e. to have a minimum six months for applying the uniform date of increment must be done away with, as it is only to be applied in the initial year. 

4.         Transport allowance.

      The recommendation of the Commission is to subsume the CCA in the Transport allowance and raise the existing Transport allowance by 4 times.  This has  reduced the proportionate benefit to certain grades and categories of employees.  We make the following suggestions:

      (a) Since the CCA has been subsumed in this allowance, no condition should be imposed for the grant of this allowance.

      (b) Taking into account that some of the employees might get reduced benefit from the across the board rise at the rate of 4 times, the following rates may be applied.

Employees drawing grade pay

A-1/A class cities


Rs.5400 and above.

Rs. 3200 + DA

Rs. 2400 + DA

Rs. 4200 – 4800

Rs. 2400 + DA

Rs. 1800 + DA

Rs. Below Rs. 4200

Rs. 1600 + DA          

Rs. 1200 + DA



5.         Fixation of pay on Promotion

 In the present scheme of things, wherein many grades have been merged under one single Pay band, promotion will not bring about any significant rise in emoluments.  The benefit will be very insignificant in the case of promotion from one grade to another where the grade pay is one and the same.   In that case the one increment benefit will be less than even what is obtaining today.  We suggest to incorporate the following clause to take care of this situation. 

"the pay plus grade pay so fixed on promotion shall not be less than 10% of pay plus grade pay the individual was drawing in the feeder cadre." 

6.         Allowances and benefits withdrawn. 

Certain allowances and benefits have been withdrawn to be replaced with a new scheme. The New scheme will have to be formulated on the basis of discussion/agreement in the National/Departmental Council as the case may.  Till such agreement is reached, the old scheme of allowances and benefits will continue to be operated relating to the revised basic pay and grade pay.

7.         Special duty allowance of North Eastern Region.We hope that the SDA will now become available for all employees working in the North Eastern Region.  However, we feel that  it is likely that the phraseology  employed in detailing the scheme is capable of misinterpretation giving room for further discrimination amongst the employees posted in N.E. Region.  This may therefore, be appropriately clarified to mean that the employees and officers working in  North Eastern Region is entitled to draw this allowance .


8.         Daily allowance on tour:         

            The rates of daily allowance which include the following elements, viz. food, conveyance and accommodation suggested by the Commission to the officers other than Gr. A is extremely meager and would not go to meet the expenditure involved.  We suggest the following amendment .

            The rates prescribed for grade pay of Rs. 4200 to 4800 and below Rs. 4200 may be replaced with the following.


Rs. 4200 to 4800

Reimbursement of hotel accommodation of upto

Rs. 1000 per day . reimbursement of travel charges

upto Rs. 150 per diem for travel within the city and

reimbursement of food  not exceeding Rs. 200 per day.

Below Rs. 4200

Reimbursement of hotel accommodation of upto

Rs. 700 per day . reimbursement of travel charges upto

Rs. 150 per diem for travel within the city and

reimbursement of food  not exceeding Rs. 200 per day.


9.         Promotion. ACP Scheme.

            The scheme should be improved to provide three promotion at the intervals of ten, twenty and twenty five years of service. 

10.        Inappropriate rationalization

            There is a great deal of resentment over the rationalization of the scales of pay of S9 to S12. The grievances in this must be addressed by appropriate decisions.  

11.        Pension.     The Staff Side appreciates the acceptance of some of its suggestions for improving the pension of the old pensioners by the Commission. However, we feel the following amendment is needed in the case of pensioners.


(a)                      to raise the minimum pension from the suggested 50% to 75% i.e. from Rs. 3330 to Rs. 4995.

(b)                      The 5th CPC suggestion to refix the pension on the basis of the notional pay as on 1.1.1996 is to be implemented. The pension entitlement has to be worked out on that basis.  The new commutation table to be applied only prospectively.

(C)                   The restoration of commuted value of pension should be on completion of 12 years

12.               Fast track committee.  

There are cases like the Master Craftsmen, where the existing pay scales have been reduced to a lower scale.  To consider these types of cases, a fast track committee may be set up.

 13.               Anomalies. 

There are certain anomalies arising from the disturbance of vertical and horizontal relativities etc.  For quick and time bound disposal of these anomalies a Joint Committee of the National Council JCM with the participation of the Secretaries of all concerned Ministries should be constituted. 

14.               Grameen Dak Sewaks.

 Grameen Dak Sewaks are employed by the Postal Department.  They constitute the largest segment of the workforce of the Postal organization. We suggest that the pay, allowance, pension and other benefits in their case should be proportionately what is suggested to the regular civilian employees.   Since the Group D Cadres have been abolished, they may be promoted/absorbed/regularized in Group C cadres in the same manner provided for matriculate/non matriculate regular Group D employees.






Copy of Confederation's letter addressed to the Secretary, Staff Side, JCM. National Council dated 13,4,2008

Dear Comrades,


            Kindly refer to the formulations made to the Govt. on the 6th CPC recommendations, which might be subjected to discussion at the staff side meeting scheduled to be held on 25th instant. We request you to consider the inclusion of the  following issues to be raised with the Govt.


1.                  Minimum Wage:  We should insist that the minimum wage cannot be less than at least Rs.7400/- i.e., 156.2% of Rs.4743.  The resultant MF must be applied to construct the Pay scales.  In other words, the minimum of the Pay Band + Grade Pay cannot be less than 2.9 times of the pre-revised Basic Pay.  This if accepted will restore the  existing parity between the minimum and maximum pay at 1:12.16 with reference to the salary of the Cabinet Secretary and 1:10.8 with reference to the salary of Secretaries[1:11.8 and 1:10.2 respectively of the 5th CPC Scales]

2.                  We cannot agree to any proposal for Corporatisation, downsizing and outsourcing.  We should therefore demand that the Govt. should not accept the 6th CPC suggestion for Corporatisation of Railways and Defence production units.  For the same reasons, we should demand that no Gr.D functions should either be outsourced, contractorised or to be carried out through employment of casual labourers.

3.                  The demand for the continuation of CGHS and other medical reimbursement facilities must be categorically made.  Any new system of health care should be only optional.

4.                  We should ask the Govt. to let us know as to how the reduction of commutation value of Pension has been arrived at.  The calculation of the acturial valuation to be contested by presenting alternate valuation prepared by an expert. The revised valuation table of commuted value should come into effect only after reaching an agreement in this regard. The revival of commuted portion after 12 years has to be insisted, as the Govt. gets back it with interest, after 11 years.

5.                  The replacement of the existing system of Bonus and overtime allowance by incentive scheme is to be opposed.  The adhoc Bonus can only be replaced by PLB and not by PLI.  The Govt. should not accept the 6th CPC suggestion to replace the adhoc bonus with PLI.

6.                  Our per se opposition to PRP concept, as it will be conceived and used as an instrument for indulging in nepotism and favoritism, should be indicated to the Govt.

7.                  The arrears should be paid in one lump sum payment.


With greetings,


                                                                                                             Yours fraternally,



                                                                                                             Secretary General


The cadre structure that should emerge on implementation of the proposal of the VICPC in respect of Non gazetted cadres of Income tax Department.


  1. All Gr.D employees to be placed in PB-1 with Grade Pay of Rs.1800/- (General recommendation)


  1. All LDCs whose number is very less (311) which will be a dying cadre in the days to come may be placed in PB-1 with Grade Pay of Rs.1900/-.


  1. All NS to be placed in PB-1 with Grade Pay of Rs.2000/-.


  1. Tax Assistants: As per the present Recruitment rule for TAs only graduates with a, minimum Character Depression in computer operations of 8000/- are only entitled for recruitment. In Paras 3.1.12 and 3.1.15 Page No. 162 and 164   the Pay Commission has said that hereafter wards the recruitment to Govt. service will be to the cadre of Executive Assistant with Graduation and diploma in computer operations as minimum qualification. Since no recruitment could be effected herein afterwards to the post of TA/Steno Gr.III, the present incumbents who are in these cadre may be placed in the PB-2 pay scale with Grade Pay of Rs.4200/-.


  1. The existing Sr.TA/Steno Gr.II/Steno Gr.I/O.S. will; be placed in PB-2 with Grade Pay of Rsd.4200 as recommended by the 6th CPC. The nomenclature of the cadre hereinafter will be executive Assistant.


  1. The A.O. Gr.III/P.S./Inspectors of Income-tax will have to be placed in PB-2 with Grade Pay of Rs.4600/- equivalent to pre-revised scale of pay of 7450-11500 in view of the General recommendation in Para 2.21(v)  of Commissions report.


  1. All the cadres of canteen employees may be placed in the corresponding Pay Band. Same is the case in respect of Hindi Translators. (Canteen employees –Para 3.8.7 pg.210).


  1. Staff Car Drivers in the existing pay scale of 3050-4590 will be put in PB-1 with a Grade Pay of Rs.1900/-. SCDs in the pay scale of 4600-6000 in the PB-1 with Grade Pay of Rs.2400/- and SCDs in the pay scale of 4500-7000 will be put in PB-1 with Grade Pay of 2800/-. Selection Grade of SCDs at 5000-8000 scale will be put in PB-2 with Grade Pay 4200/- as suggested by the Pay Commission. (Page 212 Para 3.8.10).