1. This is an appeal under section 17 of the Payment of Wages Act, 1936, filed by 12 employees against the Railway Administration.
2. All the 32 employees were: working as mates. They were placed in the National Scales of Pay with effect from 1st March 1972. The question which needs determination in this case is whether under the percentage increase formula they were entitled to 40% increase in the existing pay. The Railway Administration issued an Extraordinary Gazette Notification No. E-72-PC-2-11, dated 22nd July 1972 laying down the policy of adopting National Scales of Pay, allowances and other fringe benefits for non-gazetted Railway employees. 15 of the above employees were unskilled mates, working in the the scale of Rs. 70-1--85 plus Rs. 7.50 special pay. The remaining 17 employees were semi-skilled mates, working in the the scale of Rs. 85-2 -115. Both the categories were placed in National Scale of Pay No. 3 and they were allowed 30% increase of the existing bask pay. Their grievance was that they should have been placed in National Pay Scale No. 1 and so, they were entitled to 40% increase in pay. They filed to applications before the Authority under the Payment of Wages Act, 1936. The pay of each individual has been calculated separately and it has been shown that every one of them had a loss from Rs. 8 to Rs. 10 by applying a wrong formula. It was alleged that it was deduction of pay and so Authority should direct the Railway Administration to allow them the above pay. They also claimed ten times compensation for these deductions.
3. Both the appeals were decided by the same order and so appeal has been filed. The facts are undisputed. It is admitted that all the 32 employees were placed in National Scale of pay with effect from 1st March 1972. It was also admitted by both the parties that the increase was to be given in accordance with the formula laid down in para. 1 (c) of the Scheme of National Scales of Pay, given in the Government Notification No. (2)-NG--Imp-/71, dated 8th March, 1972. Para. (c) is laid down as under.
4. "(C) In the case of the existing Government Servants i.e. Those who have been the non-gazetted civil employees of the Central Government since before 1st March, 1972 initial pay in the National Scale of Pay of the post held by them on the 1st March 1972, will be fixed at the stage equal to or if there be no such stage at the stage next above, the aggregate of the following viz: ---
(i) The existing basic pay i.e., the basic pay that would have been admissible on Ist March 1972, but for the issue of this O. &. M.
(ii) An amount of increase, to be determined percentage increase formula given below: Percentage Increase Formula National Scale of Pay in which pay is to be fixed.
5. Percentage Increase Formula National Scale of Pay in which pay is to be fixed.Percentage Increase of the existing basic pay.
6. 1 and 240% subject to a minimum of Rs. 20 and a maximum of Rs. 40.
7. 3 and 430% subject to a minimum of Rs. 20 and a maximum of Rs. 40.
8. 5, 6 and 720% subject to a minimum of Rs. 20 and a maximum of Rs. 60.
9. Note.---(a) Where the aggregate of (i) and (ii) above exceeds the maximum of the relevant National Scale of Pay, the excess will be allowed as a Personal Pay, subject to subsequent reductions under F. R. 37.
(b) In case in which with the Revised Prescribed Scale a special pay stood permanently attached to a post and the incumbent of the post was ordinarily not transferable to another post, not carrying such special pay except on promotion or demotion the terms "existing basic pay" occurring in sub clauses (i) and (if) above will be inclusive of that special pay."
10. 15 of the employees who were unskilled mates, were in grade of Rs. 70-1-35 plus Rs. 7.50 special pay. Their total existing pay at maximum was Rs. 9.50. The remaining 17 employees were semi- skilled mates and they were in the grade of Rs. 85-2-115. Applying the above formula all the employees must have been placed in National Pay Scale No. 1, because in any case they were getting less than Rs.
140. Applying the above formula they must have been given 40% increase of the existing basic pay. The anomaly arose due to certain representation made by different Trade Unions of Railway to the Minister Incharge. One of the special features of the scheme of National Scales of Pay was the almost automatic promotion from one scale to the next. However, at the end of each pay scale an employee was expected to earn four `good' annual reports before he should be promoted to the next higher scale. Railway men represented that the provisions about earning four good reports be done away with. It was also represented that the period of four years, which W as required to elapse before a person could be promoted to the next pay scale should also be done away with. The President was graciously pleased to accept both these demands. The effect was that it became immaterial in which grade the Railway men should be placed. Some of the other demands were that particular categories be placed in higher scales of pay. The existing scales of pay in the Railway Department were so numerous that it became headache as to how all the existing grades should be brought within a close span of 15 grades only. The Railway Administration had at least 6 different scales of pay for the unskilled and semi-skilled Railway men.
11. In the present case 15 employees were unskilled mates and 17 employees were semi-skilled mates.
12. In a way the Railway Administration by placing them in National Pay Scale No. 3, wanted to do a favour to them but in fact it was detrimental to their interest. If the condition of earning four good annual reports should not have been waived in that case the position adopted by the Railway Administration might have been advanta--geous to them but otherwise placing them in National Scale No. 3, it goes against their interest. The reason is that if they are placed in National Scale No. 1, they get an increase of 40% in their existing basic pay but if they are placed in National Pay Scale No.3, they get an increase of 30 only. The calculations show that they suffered a loss to the tune of Rs. 8 to 10 per month.
13. The only argument on behalf of Railway Administration was that the scheme as laid down in Notification No. E-72-PC-II, dated 22nd July, 1972 and the statement showing equivalence of consolidated scales with National Scale of Pay at page 37 of the said Gazette was approved by the President of Pakistan, therefore, the presumption was that the formula in respect of payments had been changed. I see no force in this argument. The Government Notification dated 8th March 1972 clearly provides the scheme of National Pay Scales and any further change must go to the advantage to the Railway men and not to their disadvantage. Anything which goes to their disadvantage is against the spirit of the scheme of National Scale of Pay. The essence of the scheme was to increase the pay of the Governments employees and any interpretation by which the proper increase can be reduced is against the scheme of National Scales of Pay.
14. For the above reasons I hold that the Railway` Administration must place all the 32 employees in grade No. 1, of the National Scale of Pay and must allow them an increase of 40% in the existing pay. After this calculation all the 32 employees are entitled to get the same pay as has been given in their applications. The uptodate loss in each case has been calculated. The total loss in one case comes to Rs. 2,440 and in the other case Rs. 3,036. I, therefore, direct that all the 32 employees be refunded the arrears of pay already deducted together with compensation of equal amount.