Comparative study on the pay scales of LDC & UDCs of Kerala State and Central Government

LDC-UDC ISSUE:
The comments of Shri George Antony, Kalpakkam on the Memorandum submitted to the 7^th Pay Commission by this Association is given below:  Shri Antony has made a comparative study on the pay scales of LDC & UDCs of Kerala State and Central Government wherein it has seen that the LDC/UDC posted in Central Government are being paid much less pay than the pay of LDC/UDC of Kerala State.  

All our friends are requested to send useful material in support of the demands put up by us to the 7^th CPC to this Association so that the same may be used during oral evidence.   

TKR Pillai

I have gone through your memorandum to 7^th CPC. After analyzing the past pay commissions and various state government pay commissions, I have observed some facts which I would like to share with you. This may be useful for your meeting with 7^th CPC in the nearby future. The observations are listed below for your consideration.

1) There is a general conception that central gov. employee’s pay is more than state gov. employee’s pay. But this is not true in many cases.

Kerala gov. employee’s pay is more than central gov. employee’s pay in many equivalent posts like LDC, UDC etc.

Comparison of Central pay with Kerala government pay(AS ON 01/01/2014)

(Calculated on the minimum of the scale)

	POST	SCALE	BASIC	DA	TOTAL SALARY
KERALA	LDC	9940-15380	9940	7256 (73%)	17196
CENTRAL	LDC	5200-20100(PB1)	5830+1900= 7730	7730 (100%)	15460

                         

	POST	SCALE	BASIC	DA	TOTAL SALARY
KERALA	UDC	13210-20740	13210	9643(73%)	22853
CENTRAL	UDC	5200-20100(PB1)	7510+2400=9910	9910(100%)	19820

 Thus a central gov. LDC is drawing 11.22 %( Rs 1736) less salary than his Kerala counterpart. Similarly Central government UDC is drawing 15.3 %(Rs3033) less salary than his Kerala counterpart.

This same cases are there for many other posts. This is because in Kerala new pay commission is constituted in every 5 years. Hence their basic salary becomes higher. Irrespective of the new  pay scales they are getting the same DA in every 6 months as central gov. DA. Whenever central employees get new pay scales the DA rate is reduced, on that occasion Kerala gov.employees are getting the pre revised scale central DA.

                         Most important news is that KERALA pay scales given above are as per 9^th pay revision commission implemented from 01/07/2009.10^th pay commission was already constituted in Kerala and the new pay scales will be implemented from 01/07/2014.In that case the above mentioned pay scales may be doubled. It is anticipated that the LDC basic is changed from 9940 to 24000 and UDC from 13210 to 30000, whereas the central gov. LDC is drawing a total salary of 15460 and UDC 19820.

              I wonder why this disparity in pay was not noticed by JCM.

2)          Devaluation of Rupee

               In last 2 years there is 15  % depreciation of rupee against dollar.One dollar was equivalent to  53 rupees in 2012 and now it is 61 rupees.

%Depreciation=61-53/53=15%

This was not highlighted in the memorandum.

3)     Pay commission in every 5 years

        In many state governments, major part of the state income is spent on salary and allowances  of the state gov. employees. Still they have new pay scales in every 5 years.But only a fraction of GDP is spent for central staff and still they have pay commission in 10 years.

   Consider the 5^th and 6^th CPC,in 10 years the   multiplication factor is only 2.6

2750-4400 in 5^th CPC to 5200-20200 with GP of 1800

That means 2750 is converted to 7000. M.f. is 7000/2750 =2.54

5000-8000 is converted to 9300-39000 with GP of 4200

5000 is converted to 13500 in 10 years.M.F. is 13500/5000 =2.7

Group A scale 8000 is changed to 21000 in 10 years.mf=21000/8000 =2.6

But in Kerala within 5 years  between 2004 and 2009 pay commissions the m.f is 1.88

As the new pay revision will be effected from 01/07/2014  the multiflication factor

Within 10 years between 2004 and 2014 mf.will be between 3.5 to 3.8

Kerala LDC minimum basic of 5650 in 2004 is changed to 9940 in 2009 and present LDC salary is 17196.With the present scale itself m. f. is 17196/5650 =3.04.With the new pay scales from 01/07/2014 the multiplication factor in 10 years period will be 3.5 to 3.8 in comparison to 2.6 of central pay.(10^th pay revision commission constituted in Kerala is yet to submit the report).

4)   NEW DA AFTER PAY COMMISSION

             It is observed that DA rates are reduced immediately after new pay scales are come in to effect.This causes the nutralisation of increase in pay one get from new CPC   within a few years.

The example is given below.

                           BASIC              DP           DA installment on 01/01/08                           

 5^th CPC scale    8000                4000          6% of   (8000+40000) = Rs 720

 6^th CPC            15600+5400GP                 3% of (15600+5400) =  Rs 630

This was applicable for every scale.

On 01/01/08 the 5^TH CPC  DA was 23%.After the implementation of 6^th CPC scales DA on 01/01/2008 was fixed at 12%.What will be the actual hike in pay  once the basic is increased and DA is reduced to half of original.All in all the pay hike is very less.Please notice the Kerala  example.

  In Kerala, new pay scales were implemented from 01/07/2009.On 01/01/2010 DA of 8% was announced by centre.Irrespective of the new pay scales Kerala gov. employees also got 8% DA and within 5 years they got total DA of 73%.I do not understand the meaning of a new pay revision with increase in basic and substantial reduction in DA causing nutralisation of pay hike.

5) MINIMUM WAGE

   In Kerala wage of an agriculture laborer is Rs 600 per day (18000 per month)

Wage of carpenter ,mason etc.  is 800 to  1200 per day (24000 to 36000 per month)

A central government LDC’s total  salary is 15460 only.

(I am a Keralite hence the example of Kerala)

 I am totally agree with your proposal of pay .It should be from 01/01/2014.

 I will be happy if any of the observations is useful for you.

GEORGE ANTONY

12,    4^TH AVENUE

KALPAKKAM. TN 603102