Cabinet clears Majithia Wage Board proposals

The Majithia Wage Board has classified newspapers into eight categories based on their gross revenues and linked the increase in the salaries to their revenues.

The revised pay scale has been worked out by adding a 30% increase to the old basic pay and dearness allowance admissible up to June 2010. The 30% increase is equivalent to the interim relief that may have been given away by some organisations. The recommendations include a variable component of 35% payable to employees working in the top four classes of organisations — with revenue of Rs 50 crore and above — and 20% for the rest. The board has said that the variable component will be calculated over the 30% increase in the basic pay. The increase in the variable salary will be effective from the date the recommendations are notified by the government.

The Wage Board has also recommended various allowances such as night shift (ranging from Rs 50 to Rs 100 per night),hardship (ranging from Rs 500 to Rs 1000 per month),transport (ranging from 5% to 20%),house rent (ranging from 10% to 30%) and medical allowance (ranging from Rs 500 to Rs 1000 per month) for employees across organisations.

Newspaper organisations,however,are not amused by the Cabinet’s decision. Speaking with The Indian Express,Ravi Dhariwal,CEO,BCCL,said: “The government has been ill advised…. No newspaper organisation will be able to implement such hefty increases in salaries. Small newspapers,in fact,will be forced to shut down as they will not be in a position to honour these recommendations.”

INS president Ashish Bagga said,“It is indeed unfortunate that the INS’s request for re-examination of the flawed and one-sided report has not been considered by the government.”