Common Multiplication Factor need to be hiked to 3.15 from 2.57

The Multiple Factor of 2.57 proposed by the Pay Commission for Pay Fixation is totally unjust, inadequate and arbitrary and keeping in view the high inflation it needs to be hiked to 3.15

At present, without implementing 7th pay commission recommendations, year on year increase in the expenditure in both pay and pension has averaged about 11%. Thus real increase on account of increase in pay, all allowances & pension will be only 12.55% (23.55% – 11% = 12.55%). Real increase on account of Pay & DA will be only 5% (16% – 11% = 5%). It is clearly evident that financial implications will be very marginal on account of implementation of 7th CPC recommendations. In the scenario of increase in Government revenue every year and reduction in staff strength of every year, pay element in Government expenditure will come down every year with respect to revenue earning or GDP.

40% fixation benefit was given over 4th CPC scale to 5th CPC scale in general to all the scales.

40% of maximum of 5th CPC scale was given over 5th CPC scale as fixation benefit in general in 6th CPC scales.

But, only around 15% pay fixation benefit is recommended by 7th CPC over 6th CPC pay, which is grievously inadequate.

Table-1 given below gives the comparison on fixation benefit given by 6th CPC & recommended by 7th CPC.

The Multiple Factor of 2.57 proposed by the Pay Commission for Pay Fixation is totally unjust, inadequate and arbitrary and – keeping in view the high inflation (in real terms and wage rise in the organized sector including the PSUs in the two revisions in PSUs since the Sixth CPC. The Fixation Benefit needs to be at least 40% – as after the last two Pay Commissions and the Common Multiple Factor may please be fixed at least (Pay+DA) + 40% of Pay + DA, ie. 3.15 times of 6th CPC basic pay.

Proposed entry pay as per table explained above (figures rounded off to next 100). Enhancement given to levels in PB-2 as recommended by 7th CPC as per Job requirement, responsibilities and accountability:

Source : IRTSA