Rejoinder on News Items on PRC (06-03-2022) - పి.ఆర్.సి పై పత్రికల వ్యతిరేక వార్తలపై ప్రభుత్వ ప్రతిస్పందన

Rejoinder on News Items on PRC (06-03-2022) - పి.ఆర్.సి పై పత్రికల వ్యతిరేక వార్తలపై ప్రభుత్వ ప్రతిస్పందన

Rejoinder on News Items on PRC

1. Fitment

Andhrajyothi: 27 శాతం ఇమ్మంటే 23తో సరి Eenadu: ఉద్యోగులకు 27% ఫిట్మెంట్ సిఫారసు

Rejoinder: 11th Pay Revision Commission arrived at a fitment benefit @ 23% as per their calculations based on Indian Labour Conference (ILC) norms. However, since Interim Relief is already being given @27%, the 11th PRC recommended a 27% fitment benefit.

Committee of Secretaries Recommendation: The Committee of Secretaries recommended a fitment benefit @ 14.29% because of the considered view that, the higher fitments over the years have led to increase in HR expenditure beyond state's own revenues and the State cannot sustain five yearly periodic pay revisions with abnormally high fitment benefits. Therefore, the Committee recommended to adopt a fitment @ 14.29% as followed by the 7th Central Pay Commission.

It is noteworthy to mention that the Central Government has sanctioned a fitment benefit of 14.29% on 10-year basis, and most of the states in the country like Uttar Pradesh, Gujarat, Rajasthan, Tamil Nadu also gave a fitment benefit of 14.29%, & Kerala gave a fitment of benefit of 10% to its employees. The Government of Andhra Pradesh, despite the financial crunch, in view of the welfare of employees and pensioners have granted a fitment benefit of 23%, which is well above the fitment provided by the Government of India and many other states.

2. Financial Implications

Eenadu: ప్రభుత్వం పై PRC భారం రూ.3,181 కోట్టే


• 11th PRC in its report has estimated that there would be an additional cost of Rs.12,826 crore per annum for implementation of its recommendations for employees and pensioners out of which Rs.9,654 crore is because of Interim Relief (IR) given @ 27%. IR ceases to exist, and fitment becomes a part of employees new salary after the implementation of any PRC. Since the fitment sanctioned by the Government is @ 23%, the additional expenditure of the state on account of salaries & pensions including House Rent allowance (HRA) & Additional Quantum of Pension (AQP) as per G.O.MS.1 & G.O.MS.2 dated :17.01.2022, after implementation of 11th PRC amounts to Rs.10,247 crore.

• However, upon the representations of employees' associations to the Honourable Chief Minister, a Ministers Committee was constituted by the Government to clear the apprehensions of the employees about orders of the Government on the Pay Revision Commission and to sort out the connected issues. The Ministers Committee based on the discussions held with the various employees' unions have proposed for revision of HRA, AQP, CCA etc which amounts to an additional cost of Rs.1,460 crore. Therefore, the total additional cost on account of implementation of 11th PRC is 11,707 crore per annum.

• To add to this, an additional one-time expenditure of Rs.5,156 crore will be incurred by the Government by writing off Interim Relief (IR) paid for employees and pensioners from July, 2019 to March, 2020.

• It is a very well-known fact that is understood by all employees, for that matter, even the common man, that IR ceases to exist, and fitment comes into effect once the PRC is implemented. Therefore, the additional cost is clearly Rs.11,707 crore per annum and not Rs.3,181 crore as wrongly reported by the Eenadu. It is surprising to note that some dailies which have years of publishing experience, have reported this important matter, in such manner that has led to distortion of facts, causing confusion among the employees, and denting the image of the Government.

3. Increase in Outsourcing Salaries:

Andhrajyothi: ఔట్సోర్సింగ్ ఉద్యోగులకు 30 శాతం వరకు స్కేలు పెంచాలి.

Rejoinder: The 11th PRC report has not recommended any fitment for Outsourcing category of personnel. However, a 23% increase in their salaries is sanctioned by the Government vide G.OMS 7 dated: 17.01.2022. An additional expenditure of Rs.430 crore per annum is estimated on account of this increase.

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Rejoinder on News Items on PRC

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