LOSS CALCULATOR FOR COLLEGE/ UNIVERSITY TEACHERS

Are those who are fighting for Grade Pay of Rs.6600 from the proposed of AGP Rs. 6000 fighting for merely Rs. 600???

Dear Colleagues,

It is being propagated that no loss has been acrued to the young teachers in colleges in the pay package as proposed by the MHRD Notification (29 Dec 2008). Rather, the young teachers have been placed. We present you with a loss calculator, which is an eye opener. We, the young teachers, request all members of the teaching community to consider the genuine demands.

According to CPC minimum pay in relevant pay band for grade pay of 6600 is 18750. PRC recommended a GP of Rs.6600 and two increments for NET. This is Rs.1521. For a new entrant with MA and NET starting basic is Rs.26871 (=18750+6600+1521). Apart from this PRC also recommended academic allowance of Rs.1500. Whereas, according to MHRD pay notification the starting basic stands at Rs.21600. HRA, TA and DA are common to both the schemes. Current DA is 16%. Each year basic increases by 3% and we assume an increase of 6% in DA per annum. PRC is based on Grade Pay of 6600, 7200 and 8000 and current AGP is 6000, 7000 and 8000 respectively.

Comparison of salaries as per the Present scheme and the PRC (Chaddha Committee):

Year in Service

PRC

Current

Monthly loss

Yearly loss

1

44444

35248

9196

110348

2

47473

37466

10007

120081

3

50638

39780

10858

130292

4

53943

42193

11750

141001

5

57394

44708

12686

152229

6

60998

47331

13667

163999

7

65851

51825

14026

168316

8

69848

54779

15069

180822

9

74019

57859

16160

193923

10

78372

61069

17304

207643

11

82915

64414

18501

222007

12

89350

69910

19440

233275

13

94393

73654

20739

248871

14

99655

77555

22099

265191

Remember, this is the minimum loss. You must add to this advanced increments for M.Phil/Ph.D. as the case may be. Also, all entrants after 1st January 2004 will further lose out on 10% of the Basic Pay + DA as Employer’s Contribution to Provident Fund!

Thus, yearly loss is the price that a new entrant will pay. If we deposited these losses in the bank and earned only 8% interst rate, we find at the end of the 14th year this value would be more than Rs.40,47,118 (Rupees Forty Lac Forty Seven Thousand One Hundred Eighteen).

Also on a loan of Rupees One Lac for 20 years, monthly installment is roughly Rs.1000. Thus, monthly loss of Rs.10,000 and above means that we could have afforded an additional loan of Rupees Ten Lacs and above. This could have meant a house to many of us.

Therefore, the loss initial phase of the career is more than what is proposed to be compensated with during the later phase of the career. However, it musn’t be forgotten that for most of us Pay Band 4 is only a promise, as it will become a reality after the 7th Pay Commission which a battle to be fought after 10 years!

This is not about now. This revision is valid for the next ten years! When the 5th Pay Review was implemented 10 years ago it was respectable pay in those times. By now the pre-revised scales are no where in comparison with salaries in other sectors.

Download this document.

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