Monday, 11 September 2017

Payment on account of discontinued allowances - Daily officiating Allowance

Payment on account of discontinued allowances - Daily officiating Allowance.


The General Managers and principal Financial Advisers,
All Indian Railways & production Units.
PC-VII No.56
RBE No. 120/2017
New Delhi, dated 05.09.2017

Sub: Payment on account of discontinued allowances - Daily officiating Allowance.

Consequent upon the decision taken by the government on the recommendations of the seventh central Pay commission, the President is pleased to decide that disbursement of all existing allowances which have not been specifically recommended for continuation in terms of the Ministry of Finance's Resolution dated 6th July, 2017 shall be discontinued from 1st July, 2017. since, the Daily officiating Allowance has not been specifically recommended for continuation in the said Resolution dated 6th July, 2017, it ceases to exist with effect from 1st July 2017. shall be the responsibility of the Heads of the Department to ensure that no bill relating to disbursement in respect of Daily officiating Allowance is drawn by the Head of office/Drawing & Disbursing officers under their purview/jurisdiction. Pay and Accounts officers shall ensure that no payment is effected if any such bill relating to the disbursement of the discontinued allowance is submitted to them. If any such bills are recieved, they should be returned to the DDO and intimation thereof shall also be given to the Head of the Department and the chief controller of Accounts.

3. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

4. Please acknowledge receipt.
(Anil Kumar)
Dy. Director/E{P&A}-I
Railway Board.

Expected DA from January 2018 - DA would be 3% ?

Expected DA from January 2018 -  DA would be 3% ?

We have calculated the expected DA from January 2018 with different Scenarios, but most of the calculations comes around only 3 percent increase, lets us see the scenarios here

Scenario 1
In case the AICPIN value increase by 3 point for next FIVE months (example AUG 288, SEP 291, OCT 294, NOV 297, DEC 300,), then DA would be 3% (8.81-5 =3)


Scenario 2
In case the AICPIN value increase by 3 point for next FIVE months (example AUG 289, SEP 293, OCT 297, NOV 301, DEC 305) then DA would be 4% (9.28-5 =4)


Issue of restoration of -1S Pay Scale in 7th CPC & treatment of mutual transfer in Railways have been resolved: AIRF

Issue of restoration of -1S Pay Scale in 7th CPC &  treatment of mutual transfer in Railways have been resolved: AIRF


All India Railwaymen's Federation
No. AIRF/24(C)
Dated : September 6, 2017
The General Secretaries,
All Affiliated Unions,

Dear Comrades!
    Sub: (i) Restoration of -1S pay scale
           (ii) Treatment of Mutual Transfer from one railway to other as "inter- division transfer"
           (iii) Brief of today's meeting with Cabinet Secretary

Two very important issues, being persuaded by AIRF at the Railway Board level, have been resolved, one is -1S grade, which had been abolished by the VII CPC, has been restored, and the other issue regarding mutual transfer from one railway to other will be treated as inter- division transfer and need not to take NOC from the Zonal Railway Headquarters. Divisions at their own level will issue NOC, lot of time consumed for this purpose will be saved.

Comrades! Today I met the Cabinet Secretary (Government of India) and raised the issue of "Very Good" benchmark along with other issues of National Pension System (NPS), Minimum Wage and Fitment Formula and non-holding of JCM Meetings.

The Cabinet Secretary's views were positive and he stated that he has already communicated to Chairman Railway Board and Secretary (DoP&T) that benchmark for MACPS cannot be more than the benchmark prevalent for promotion/ selection.

He also stated that the issue of National Pension System (NPS) is under active consideration of the Government of India and he will try to derive the best formula to resolve the problems arrived out of NPS.

With Fraternal Greetings
Comradely yours
(Shiva Gopal Mishra)
General Secretary

Source : AIRF




The concept of the Need-Based Minimum Wage has evolved in India after Independence and owes its origin to the Directive Principles of the Indian Constitution and the welfare policy of the Government. Its acceptance in principle connotes a public effort at an institutional determination of wage rates particularly in the industrial sector of the economy. Unfortunately the computation of the need based minimum wage has become a controversial subject in the country. While the concept of what the need based minimum wage should cover is fairly clear and generally accepted by both the employer and employee, its actual assessment into monetary terms has raised endless disputes not alone by the employer.


Minimum wages for the average family will have to be based on requirements of food, clothing, housing and so on. Additional components of expenditure to cover for children's education, medical treatment, recreation, festivals and ceremonies.

In a vast country such as ours, there are bound to be regional variations in these requirements owing to climatic conditions, food habits, etc. At the same time in order to ensure a degree of uniformity the Conference have adopted a certain norms. The food component carries the largest- proportion of the total cost of living in a working class family. The component’s significance is not only economic but human also. On food depends the health and efficiency of the worker, which is vital to the industrial production. After a protracted discussion the Conference adopted Dr. Aykroyd's second dietary prescription of the adequate diet level, the other one being the optimum diet level. An optimum diet according to him, is one which ensures the functioning of the various life processes at their very best; whereas an adequate diet maintains these processes but not at their peak levels. The optimum diet would include more of vitamins and less of proteins in its caloric content, while the adequate diet would include more of proteins and less of vitamins.
The Committee on Fair Wages laid down that the standard working class family should be reckoned as one consisting of three consumption units, supported by a single male earner and including his wife and two children below the of age 14 The 15th Session of Indian Labour Conference approved that the wage should cover four categories of needs considered essential for the worker's well being, viz. food, clothing, housing and miscellaneous. In calculating the minimum wage, the norms for the food category should be based on Dr. W.B. Aykroyd's formula for an adequate and balanced diet. It thus came about that a wage linked to the needs was suggested as a desirable minimum.

Subsequently, when attempting to implement the recommendations of the conference, almost all the wage fixing authorities including the committees appointed under the Minimum Wages Act, 1948 have invariably faced difficulty in determining: (i) the calorific norm which should form the basis of the diet content (ii) the exact composition of the diet (iii) the qualities of the various items of diet and (iv) availabilities of food commodities consumed by the worker and his pattern of consumption. In this regard the first assault was launched by the II Central Pay Commission (1959), pertaining to the calorific norm as laid down by the 15th Indian Labour Conference. The Indian Labour Conference worked out the three-unit formula, the minimum wage is worked out taking into consideration the calorific value requirements of 2,700 each, certain length of cloth requirement, housing rental value, education and medical expenses etc.


Concept of Living Wages It represents a standard of living which provides not merely for bare physical subsistence but for maintenance of health and decency, a measure of frugal comfort, including education of children, requirement of essential social needs and a measure of insurance against eh more important misfortunes including old age. This is the ideal wages and envisaged in Article 43 of Directive Principles in Part IV of the Constitution. I. L. O. Conventions also provide for living wages.

Living wages is the ideal wages and on the line as stipulated in Article 43 of our Constitution. Wage differentials are necessary part of wage structure if skill formation is to be motivated and productivity is to be achieved but at the same time it should be reasonable.

Hence it is relevant to quote the following observation made by the Kerala High Court in Association of Planters of Kerala v State of Kerala in this regard:  A failure to fix or revise minimum wages was not only a statutory violation but is a breach of fundamental right enshrined in Art. 23 of the Constitution. A duty is cast upon the State by provisions of the Act and Article 23 to fix and revise the minimum rates of wages.


a) Normative family is taken to consist of a spouse and two children below the age of 14. With the husband assigned 1 unit, wife, 0.8 unit and two children, 0.6 units each, the minimum wage needs to address 3 consumption units;

b) The food requirement per consumption unit is shown in the Annexure to this chapter. The specifications were derived from the recommendations of Dr. Wallace Aykroyd, the noted nutritionist, which stated that an average Indian adult engaged in moderate activity should, on a daily basis, consume 2,700 calories comprising 65 grams of protein and around 45-60 grams of fat. Dr Aykroyd had further pointed out that animal proteins, such as milk, eggs, fish, liver and meat, are biologically more efficient than vegetable proteins and suggested that they should form at least one-fifth of the total protein intake

c) The clothing requirements should be based on per capita consumption of 18 yards per annum, which gives 72 yards per annum (5.5 meters per month) for the average worker’s family. The 15th ILC also specified the associated consumption of detergents

d) The prescribed provision of Report of the Seventh CPC 63Index 25 percent to cover education, recreation, ceremonies, festivals and medical expenses has been reduced to 15 percent.


The three-unit based formula to fix minimum wages presently counts only four members of a family ie husband, wife and two children. It has no provision to count dependent parents, if any, or even if there are more than two children.

The three-unit formula gives the husband a full unit, wife 0.8 unit, and 0.6 units for each of the two children.
Now the trade unions and the employees associations are of the opinion that the three-unit system are not sufficient to decide minimum wages because the children continue to stay with the family for longer periods. The two children and wife should be accorded one single unit instead of 0.6 units,” also, marriageable age of a child has also increased and they should also be given full units, the gender equality should also be observed instead of 0.8 units it should be full unit for the spouse.

Hence should be revised to the four unit formula gives the husband a full unit, wife full unit, and full units for each of the two children.

After the 2010 Supreme Court ruling that dependent parents are to be taken care of by children, two more units should be added and the formula be based on six-unit formulae than three.
"The CrPC section 125 and Maintenance of Parents and Senior Citizens Act make it mandatory for an earning member to maintain his parents, failing which he/she may have to face penal consequences. Today, the average life span of a person has increased to 68.3 years compared to that of 41 years in 1957. Hence two additional units have to be added,"

So there is a need to hike number of units from three to six to calculate minimum wages.


1) The 7th CPC has taken into consideration the 15% to cover education, recreation, ceremonies, festivals and medical expenses against 25% prescribed by the Supreme Court. Additional components of expenditure to cover for children’s education, medical treatment, recreation, festivals and ceremonies. This followed from the Supreme Court’s ruling in the Raptakos Brett Vs Workmencase of 1991 for determination of minimum wage of an industrial worker. The Supreme Court had prescribed this amount at 25 percent of the total minimum wage calculated from the first five components.

2) Secondly the prices of essential commodities for calculation of the minimum wage is always a debate , the price essential commodities by the using Consumer Price Index for Industrial Workers maintained by Labour Bureau, Shimla and the retail prices are showing different rates , the retail prices of essential commodities are at higher end including that of state Government run co-operative society’s compared to the retail prices maintained by Labour Bureau, Shimla by more than 15%, that is the prices maintained by Labour Bureau, Shimla are lower by more than 15% compared to market prices , the CG employees are deprived of proper minimum wage by an extent of 25% . If proper retail prices are taken into account the minimum wage shall be more than Rs 26,000/- as on 1st Jan 2016.


The revision of payment of wages act, 1936 , the Government has raised the monetary limit of wages to Rs. 24000/- per month for the applicability of the Act by issuing the notification .This calculation of Rs 24,000/ is based on Dr. W.B. Aykroyd’s formula. This is done on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organization.

The payment of wages act, 1936 monetary limit of wages to Rs. 24000/- per month is for unskilled worker , if we add Rs 25% for skilled worker , it work out at Rs 30000/- for skilled worker which includes wages and allowances, at present the Central Government employees at the initial stage are paid Rs 23,000/- (Rs 18,000/ as minimum wage and Rs 5,000/ as allowances ), still there is gap of Rs 7,000/ , if the minimum wage of Central Government employees is re fixed at Rs 22,000/ then this gap shall be reduced.
The breakup of the Central Government employee's salary is as follows.

Non Metro City
Minimum wage Rs 18,000/-
HRA Rs 1800/-
Transport allowances Rs 900/-
Children education allowances Rs 2250/-
Total Salary : Rs 22950/-
The Central Government employees are deprived of the actual minimum wage of Rs 26,000/-. Hence there is a need of revision of minimum wage from Rs 18,000/ as Central Government is a model employer.
Via : COC Karnataka

Flash News

DA Jan 2022 - Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 01.01.2022

 3% DA Hike - Revised Rates effective from 01.01.2022: DoE OM dated 31.03.2022 No. 1/2/2022-E-II (B) Government of India Ministry of Finance...