Serious resentment among employees against 7th Pay Commission’s retrograde recommendations

There is widespread disappointment and resentment among all sections of Central Government employees against the retrograde recommendations of 7th Central Pay Commission.

National Federation of Indian Railwaymen

Affiliated to :

Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)


Dated: 23/11/2015

Shri Arun Jaitley,
Hon’ble Finance Minister,
134/North Block,
New Delhi

Respected Sir,

Sub: Seventh Central Pay Commission’s Report — serious resentment among employees against retrograde recommendations — reg.

There is widespread disappointment and resentment among all sections of Central Government employees against the retrograde recommendations of 7th Central Pay Commission.

In this connection, the National Federation of Indian Railwaymen (NFIR) places below core recommendations briefly which have generated unhappiness and anger among the employees in Railways as well as those in other departments of the Central Government:-

I. Minimum salary:

The Pay Commission has illogically recommended the minimum salary Rs.18,000/- p.m. We have explained our case through JCM Staff Side memorandum and also during the meetings with the Pay Commission that the minimum wage of the employees needs to be fixed at Rs. 26,000/- p.m. While the Pay Commission has briefly discussed our proposal in Chapter 4.2 of its report, ‘Determination of Minimum Pay’ in para 4.2.5 & 4.2.6 (at Page 61), it is sad to state that the 7th CPC has not only mutilated Dr.Aykroyd formula for determination of minimum wages but also changed Hon’ble Supreme Court’s decision wherein 25% to be added to the salary computed towards meeting the expenses on marriage, recreation, festivals, health, education etc. The housing component has also been reduced to 3%, with the aim to peg the minimum salary at Rs.18,000/- p.m.

II.Fitment formula:

(a) The multiplying factor 2.57 recommended by the 7th Central Pay Commission, vide para 5.1.27 (Page 77) of the Report, is totally illogical. Kind attention is invited to the pay increase granted pursuant to implementation of 5th & 6th Central Pay Commissions in the years 1996 & 2006 as placed below:-

Vth CPC – 40% hike with effect from 01/01/1996.
VIth CPC – over 32% hike (1.86 multiplying factor) w.e.f.01/01/2006

(b) The VIIth CPC has also admitted in its report vide Chapter 4.2, para 4.2.9 (Page 63) the percentage increase of pay in the past as below:-

Vth CPC 31% w.e.f. 01/01/1996
VIth CPC 54% w.e.f. 01/01/2006
VIIth CPC 14.3% (since recommended)

The above facts, reveal that the VIIth Pay Commission has given perverse recommendation on “Minimum Wage” and “fitment formula”, which has led to all – round dissatisfaction among employees.

III. Abolition of Allowances:

The pay Commission has recommended for abolition of various allowances without looking into the background and justification on which those allowances were granted initially.

IV. House Rent Allowance:

Reduction of House Rent Allowance from the present ceiling of 30,20 & 10 to 24, 16 & 8 percent for Classes X,Y & Z cities is not proper. The house rents are very exorbitant in cities and small towns.

The Railway employees are extremely unhappy over non-grant of improved pay scales inspite of the fact that their duties are unique, complex and hazardous.

NFIR, therefore, requests the Government to take steps to modify the recommendations suitably for enhancing the minimum wage and fitment formula through discussions with staff side Federations and see that the atmosphere of confrontation is avoided. There are also many anomalies and aberrations in the report which are required to be dealt through discussions for rectification.

Yours Sincerely,
General Secretary

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10 thoughts on “Serious resentment among employees against 7th Pay Commission’s retrograde recommendations”

  1. As waiting ten years period for 7th pay commission what is the benefit to the c . Gov’t employees compared to state gov’t pay revision

  2. By referring to fitment of old pay of retired employees to the Minimum of the new pay matrix for pension calculation, it is discriminatory to the retired persons in comparison to their equivalent serving employees. This is particularly true in case of level 14 i.e. old PB IV GP 10000 where fitment factor is 2.72 and old pay drawn is higher than the minimum of this level.

  3. Hon’ble Justice made a clear injustice to Central Government Employees which may be considered as a remarkable historical event made by 7th Pay Commission.

  4. This pay commission is totally unfair, unsatisfied, illogical and creating very much difference between officers and staff.

  5. This 7th CPC reduced to a merging committee.. nothing other than simple merging of DA with the basic items, it never gone through the systematic study on wage calculation.. On Traveling allowance, up to level 8 employees have to find roadside slum huts while their higher ups adjust in lodgings on official tours.. 7th CPC fully enjoyed its normal and extended tenure with all facilities, keeping government employees in fools paradise… already there is huge shortage of staff and large number of staff to run the government machinery are from bellow level 8.. pay scales up to level 8 not at all addressed properly.. if you through peanuts, gets monkeys only…

  6. Officers in the level of GM and above(secretaries) are given 3 times the present consolidated pay , but others in the lower rungs are given only 2.57 times of their basic pay. This
    is totally unfair and unjustified.



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