Friday 27 November 2015
7th CPC Recommendations - Confederation National Secretariat Decisions --
Date : 27-11-2015
Dear Comrades,
National Secretariat of the Confederation of Central Govt Employees & Workers held on 27-11-15 at New Delhi after detailed deliberations on the recommendations of the 7th Central Pay Commission (CPC) has decided as follows :
1.The National Secretariat has come to the unanimous conclusion that many of the recommendations of the 7th CPC are most retrograde and require to be modified before implementation by the Government, especially the faulty and depressed minimum wage arrived at by the 7th CPC and the fitment formula. Some of the recommendations such as abolition of certain allowances etc., are to be rejected.
2. The National Secretariat is of the firm opinion that a united struggle of entire Central Govt Employees including Railways, Defence and Confederation under the banner of National Joint Council of Action (NJCA) can only compel the Government to modify or reject the retrograde recommendations of the 7th CPC and hence it is decided to further strengthen the unity.
3. The National Secretariat further resolved that the form of the united struggle of NJCA should be an indefinite strike, within a time frame, as Govt is moving fast to implement the recommendations. Negotiation with the Government should precede declaration of indefinite strike and intensive campaign among the employees and mobilization, to create sanction behind the demands.
4. In case the requisite movement is not coming about for any reason, Confederation National Secretariat will meet and chalk out its own independent action.
5. Regarding the sector-wise issues relating to the employees of each department, the affiliated organizations of the Confederation in those departments shall take initiative for uniting all like-minded Federations/Associations/Unions in their department and shall organize agitational programmes on departmental specific demands.
6. The National Secretariat decided to insist that the charter of demands of the NJCA and Confederation should include the demands of Gramin Dak Sevaks, Casual/Contract labourers, filling up of vacancies and scraping the New Contributory Pension Scheme.
7. All affiliated organizations of Confederation are requested to intimate by e-mail to the Confederation CHQ (confederationhq@gmail.com or mkrishnan6854@gmail.com) on the required modifications or additions / deletions in the common recommendations (not department-specific) of the 7th Pay Commission on or before 05-12-2015.
8. Available Secretariat members of the Confederation will meet on 07-12-2015 at New Delhi and finalize the common demands to be included in the charter of demands of NJCA. (NJCA meeting is being held at JCM National Council, Staff-side office on 08-12-2015 to finalize the charter of demands and the further course of action).
9. The National Secretariat congratulated all the Central Govt Employees who made the 27th November 2015 ‘All India Protest Day’ at the call of NJCA, a grand success all over the country by wearing ‘black badges’ and participating in protest demonstrations.
Other Decisions:
1.Next All India Workshop-cum-Trade Union Camp of Confederation will be held at Dehradun (Uttarakhand) before March 2016.
2. The National Secretariat extended full support and solidarity to the proposed agitational programmes of Passport Employees Association including ‘Indefinite hungerfast’.
=M.Krishnan
Secretary General
DECEMBER 1st & 2nd , 2015 STRIKE DEFERRED
SECRETARY GENERAL AND ALL GENERAL SECRETARIES OF NFPE & AIPEU GDS (NFPE) WILL SIT ON TWO DAYS HUNGER FAST INFRONT OF DAK BHAWAN, NEW DELHI ON 1st & 2nd DECEMBER 2015.
ONE DAY MASS HUNGER FAST IN FRONT OF ALL CPMG / PMG & DIVISIONAL OFFICES ON 11th DECEMBER 2015.
TO EXPRESS OUR ANGER, RESENTMENT AND STRONG PROTEST AGAINST THE REJECTION OF THE LEGITIMATE DEMANDS OF THREE LAKHS GRAMIN DAK SEVAKS BY THE NDA GOVT.
The Federal Secretariat of NFPE held at NFPE Office, New Delhi on 26-11-2015, reviewed the whole situation prevailing among the postal employees in general and the Gramin Dak Sevaks (GDS) in particular after the submission of the 7thCentral Pay Commission Report to the Govt and also after the appointment of a separate committee for GDS by the Govt, headed by a retired Postal Board Member as Chairman.
The Federal Secretariat further reviewed the proposed two days strike call given by NFPE and AIPEU GDS (NFPE) for realization of the legitimate demands of the Gramin Dak Sevaks, which include bringing the GDS also under the purview of 7th CPC treating them as Civil Servants.
The main demand of NFPE and AIPEU GDS (NFPE) in the charter of demands submitted to Govt and Postal Board is “inclusion of GDS under the purview of 7th CPC”. NFPE organized series of agitational programmes for the GDS demands including dharnas, hunger fast, GDS Parliament March, Parliament March under the banner of Postal JCA (NFPE & FNPO), one day strike on 12th December 2012 and 48 hours strike on 12th & 13th February 2014. Due to our agitational programmes the Postal Board was compelled to submit the proposal for inclusion of GDS under 7th CPC to Finance Ministry with favourable recommendations. But the Finance Ministry rejected the proposal three times and it is in this background NFPE & AIPEU GDS (NFPE) decided to go for two days strike on December 1st & 2nd demanding the Govt to include GDS under the 7th Pay Commission.
Even though the Govt refused to include the GDS under the 7th CPC, the 7th CPC has suo moto examined the main demand of the GDS ie., treating them as Civil Servants and extending them all the benefits of the departmental employees, ofcourse proportionately. It is most unfortunate that the Pay Commission headed by a retired Supreme Court Justice as Chairman, has considered our demand and categorically stated that Gramin Dak Sevaks are holders of Civil Posts but outside the regular civil service and hence can not be treated at par with other civilian employees. After this observation of the Seventh CPC even if the GDS are included in the 7th CPC they are not going to get a fair deal. This has compelled us to modify the demand placed by us before the Govt in the charter of demands.
NFPE, from the very beginning has opposed the appointment of an Officer Committee for GDS and NFPE & AIPEU GDS (NFPE) has tried their best to prevent appointment of an Officer Committee and compelled the department to make effort for inclusion of GDS under 7th CPC itself. But now NDA Govt rejected our demand and has unilaterally appointed GDS Committee with a retired Postal Board Member as Chairman and cheated three lakh GDS employees. From our past experiences we know that the retired officers of the Postal Department will never do justice to the Gramin Dak Sevaks.
In view of the fact that 7th CPC has rejected our demand for Civil Servant status and also the Govt has unilaterally imposed the officer committee on GDS, the Federal Secretariat felt that it is not appropriate to go for an immediate strike with the demands raised by us in the charter of demands, i.e., inclusion of GDS under 7th CPC. Now GDS can get justice only if NDA Govt take a policy decision to regularize the services of GDS treating them as Civil Servants. Federal Secretariat is fully aware that we can not expect such a decision without the change in the policy of the Government towards GDS. To make a change in the policy decision of the Govt., a bigger mobilization and strike of all postal employees including GDS with the active support and solidarity of other central Govt employees under the banner of Confederation of Central Govt Employees and workers and also the JCM National Council Staffside organizations is required.
The Federal Secretariat decided to explore all possibilities and wider consultations for such a united struggle. The Federal Secretariat felt that to pave way for wider consultations, the independent strike call of NFPE & AIPEU GDS (NFPE) need to be deferred and all likeminded organizations are to be brought under a common platform. Accordingly Federal Secretariat unanimously decided to defer the proposed two days strike scheduled to be held on 1st & 2nd December 2015.
The Secretary General and all General Secretaries of NFPE shall sit on two days hunger fast in front of Dak Bhawan, New Delhi on 1st & 2nd December 2015 expressing our strong protest to the Govt and also demanding regularization of Gramin Dak Sevaks by granting them civil servant status with all consequential benefits of regular employees.
The Federal Secretariat, while saluting the grass root level workers for their intensive campaign and preparation for the strike, calls upon them to organize one day hunger fast infront of all CPMG / PMG and Divisional Offices throughout the country on 11th December 2015 to ventilate our anger, resentment and strong protest against the callous and inhuman attitude of the NDA Govt towards three lakh Gramin Dak Sevaks who are the backbone of the Postal Department catering to the needs of the rural population of this country in postal sector.
Federal Executive of NFPE will meet shortly to review the situation and shall decide future course of action.
SECRETARY GENERAL
INDIA POST PAYMENTS BANK
*******************************************
Why we must not grudge them a pay hike
In the heyday of Indian socialism, the perception of government was benign. In today’s climate of liberalisation, the government is viewed with hostility. That must explain the negative reaction both in the media and amongst the public at large to the increases in pay for Central government employees recommended by the Seventh Pay Commission (SPC).
The pay hikes are modest — embarrassingly so in comparison with pay increases and bonuses in the private sector. Yet, media reports talk of a ‘bonanza for babus’. The impact on the fiscal can be easily digested by the Indian economy. Yet, analysts warn of slippages in the fiscal deficit, a possible boost to inflation, and a setback to public investment. Do we want to run the government — which comprises not just civil servants but the police, armed forces, nurses, doctors, regulators and academics — at all? Or have we persuaded ourselves that all of the government is simply money down the drain?
Setting pay in government
The SPC’s figures don’t come out of nowhere. The Commission has a rigorous basis for setting pay in government. It arrives at a figure for minimum pay in government with reference to norms laid down by the 15th Indian Labour Conference (ILC) in 1957. The ILC had said that the minimum wage should cover the basic needs of a worker and his family, that is, a spouse, and two children who are below the age of 14. The SPC has spelt out the norms it has used for determining basic needs. It has gone by food requirements specified by a well-known nutritionist. To this are added provisions for clothing, fuel and lighting, education, recreation, festivities, medical expenses, and housing. There is an addition of 25 per cent to the total of the above to provide for the skill factor (the basic needs having been determined for an unskilled person). The SPC report provides detailed computations for each of these items. No reasonable person can accuse the SPC of being overgenerous.
Based on these norms, the SPC arrives at a minimum wage of Rs. 18,000 for a government employee. This is 2.57 times the minimum pay in the Sixth Pay Commission. The increase over the projected pay on the current basis as of January 1, 2016 is 14.3 per cent. This is the second lowest increase recommended by any Pay Commission since the first one, and it is way below the 54 per cent increase following the last one. The multiplication factor of 2.57 is used to arrive at pay for all levels of government except for a few at the top where a slightly higher multiple is used.
As before, pay at the lower levels of government is higher than in the private sector; at the top, the position is reversed. In today’s context, this may not be a bad thing at all. Pay in the private sector today is contributing towards massive inequalities in Indian society. Having a very different structure in government is a useful corrective to trends in the private sector. It will help contain tensions created by rising inequality.
Good news
So far as the impact on government finances is concerned, the SPC numbers provide a stream of good news. First, the impact of the pay hike on the Central government (including the railways) will amount to 0.65 per cent of GDP. This is less than the impact of 0.77 per cent of GDP on account of the Sixth Pay Commission.
Second, the impact on the Central government (excluding Railways), which is what matters when it comes to the Union budget, is 0.46 per cent of GDP. As some of the increase in salary comes back to the government as taxes, the impact, net of taxes, will be even less — say, 0.4 per cent of GDP (assuming an average tax rate of around 20 per cent on government pay). This is a strictly one-off impact. The correct way to view it, therefore, would be to amortise it over a period of, say, five years. The annual impact then is 0.08 per cent of GDP. The impact on the fiscal at the central level is barely noticeable.
Trends in the wage burden in the government are worth noting. Pay and allowances in the Central government have remained stable since 2010-11 at around 1.8-2.0 per cent of GDP. Thus, pay and allowances have been rising at roughly the same level as nominal GDP or 11-12 per cent. This is the increase after taking into account increments, adjustments for dearness allowance and promotions. In the private sector, such an increase would be considered laughable at all but the lowest level.
Pay, allowances and pension (PAP) as a proportion of government expenditure has been declining sharply. In 1998-99, PAP was 38 per cent of revenue expenditure. The SPC estimates that this figure has fallen to 18 per cent in 2015-16. (It will go up to 22 per cent in 2017-17 consequent to the SPC award, but will decline thereafter, as pay grows at a lower rate than government expenditure). The implication is striking: in financial terms, the workforce in government has been effectively downsized by nearly half over the past 17 years.
Pay in the private sector is contributing towards massive inequalities in society. Having a different structure in government will help contain tensions created by this inequality
Even in terms of numbers, India’s central bureaucracy (including the Railways but excluding the armed forces) has neither been increasing in recent years nor hugely bloated in absolute terms. The number of employees grew to a peak of 41.76 lakh in 1994. It has declined since to 38.9 lakh in 2014. Of the total, 13.8 lakh is accounted for by security-related entities (police and defence civilians). Railways and Post, which perform commercial functions, account for 15 lakh personnel. There are other commercial departments as well, such as Communications. Excluding security and commercial functions, the total central employment is just 4.18 lakh. “The ‘core’ of the government…”, the SPC report notes, “is actually very small…”
The SPC substantiates its point by comparing India’s Central government workforce with that of the federal government workforce in the U.S. In 2012, the non-postal civilian workforce in the U.S. was 21.3 lakh. In India, the corresponding figure in 2014 was 17.96 lakh. The number of personnel per lakh of population in India was 139 in 2014, way below the figure of 668 for the U.S. India’s bureaucracy needs not so much downsizing as right-sizing — we need more doctors, engineers, IT specialists, tax experts, judges, and so on.
The government is not bound by the SPC’s recommendations. It can opt for higher pay hikes as happened with the previous Pay Commission. Assuming the government goes along with the SPC, what impact on growth can we expect? Increased pay for government employees means greater government expenditure and hence a fiscal stimulus — provided government expenditure on other counts is not reduced and the fiscal deficit rises. This happened at the time of the Sixth Pay Commission. Higher wages for government employees contributed to a higher fiscal deficit and helped stimulate growth in the short run.
This time round, the Finance Ministry insists that it will stick to its fiscal deficit target for 2016-17 after providing for the SPC pay hike. If it does so, the reduction in fiscal deficit will be contractionary. Hence, the pay hike will not lead to economic expansion in the aggregate. However, greater income in the hands of government employees could favourably impact sectors such as the real estate, automobiles and consumer goods.
(T.T. Ram Mohan is professor at IIM Ahmedabad)
//copy//Courtesy : The Hindu (dt.24th Nov 2015)
Will Seventh Pay Commission ease woes of the realty sector?
Here’s how the recommended 16% rise in basic salary and the 138.7% increase in HRA could spur demand for housing
Will the Seventh Pay Commission help the real estate sector that has been enmeshed in a host of problems over the last several years? Tracing the history of such central government salary revisions in the past, analysts hope that it will boost consumption in the economy.
This time around, there’s reason for real estate developers to smile, too. Here’s how the recommended 16% rise in basic salary and the 138.7% increase in house rent allowance (HRA) could spur demand for housing.
First, it implies a higher disposable income. Second, higher HRA will boost rentals and with the cost of property remaining range-bound, it will improve rental yields. This, in turn, could motivate investment in residential property.
A Bank of America-Merrill Lynch report outlines several other proposals in the pay commission report that could prop up housing demand. For instance, the subsidized housing loan limit has been hiked, while the period of continuous service to avail of it has been reduced. Further, this is likely to extend to both spouses separately, if they are central government employees.
Note that in the recent past, the government has initiated reforms like opening realty projects to foreign direct investment and real estate investment trusts. Besides, with interest rates being lowered and some firms being able to lure private equity investors, there is a ray of hope that the debt-laden realty firms would get some relief.
But these are at the corporate level and these alone are not enough. Retail demand for property is still in a state of inertia with most developers stuck with unsold inventory. New launches have petered out and cash flows are insufficient to cover basic costs of developers in many cases.
A few weeks ago, a Crisil Ltd report said that with construction costs outpacing customer advances lately, and debt servicing being refinanced for the past two years (2013-2015), developers have been caught in a debt spiral. The 25 developers covered under the study have seen a 25% jump in residential debt toRs.61,500 crore as on 31 March 2015, compared with Rs.48,800 crore as on 31 March 2013. The underperformance of the BSE Real Estate index, therefore, for a long period and its sporadic rise when any new reform measure is announced show lack of equity investor confidence.
While the reforms stated earlier may help alleviate the interest cost pressure at least partially, the Seventh Pay Commission may give the much-needed demand push. “It should set the pace for higher home sales and improve cash flows for developers. Collectively these steps could bring relief to the realty sector,” says Binaifer Jehani, director, Crisil Research.
Why govt employees hate the NPS - Business Standard
WRITTEN BY ADMIN ON NOVEMBER 25, 2015 | WEDNESDAY, NOVEMBER 25, 2015
The 7th central pay commission (CPC) was not supposed to look into the National Pension System (NPS). The terms of reference of the body headed by ex-judge Ashok Mathur limited the mandate in this regard to only the Old Pension System (OPS). Yet, the number of grievances and complaints were so many that the commission decided to deal with it in detail. The grievances ranged from lack of basic elements such as a grievance redressal mechanism to disadvantages in the tax regime and structural issues.
Amusingly, over a decade into its existence and after mopping a corpus of over Rs 24,000 crore as of 2013-14 from a little over 1.3 million people, the NPS still has critics, who wanted it scrapped. “The larger federations and staff associations advocated scrapping the NPS on the ground that it discriminates between two sets of government employees,” the commission noted. Some subscribers pleaded for reverting to the OPS, citing uncertainty regarding the actual value of their future pension in the face of market related risks.
Being a defined contribution scheme, NPS effectively shaves 10 per cent off an employee's take-home salary. While this is a concern for many, they also harboured the opposite worry —that this 10 per cent plus 10 (matching contribution from employer) might not be enough to give them a pension that is about half their last salary. The commission has asked the government to consider if the number can be reviewed.
The bad state of grievance redressal and absence of consultation with stakeholders has generated insecurity in stakeholders. Even senior Group-A officers of the central government, as well as All India Service (AIS) officers, are sceptical about NPS, the commission has noted.
Family pension, for widows/dependents of a deceased employee, is another common grievance. Staff associations have complained that this, after death of an employee, is not ensured in the NPS. More, if an employee dies at an early age, the family would suffer, since annuity from the contribution would be grossly inadequate.
Other such comparisons to instruments such as GPF, PPF and the OPS were widely heard by the CPC. Some were worried about the lack of choice for government employees, the asset allocation and fund managers under the NPS. The commission has asked the pension regulator to provide a range of options and investment mixes, calibrated on a life cycle approach, wherein younger employees are given an exposure to high risk, high return choices.
Another example of shoddy implementation of NPS came up in the case of AIS officers in some states, where contributions by the state governments concerned are yet to be fully made and deployed. The net result is contributions for 2004-2012 have not been fully made or have earned simple interest and did not get any market linked returns. Worse, contributions by some have been returned to them without interest.
This goes against the fundamentals of a defined contribution scheme. A typical employee’s service is 30-35 years. If he loses compounding benefits for a third of that period, what will he/she be left with? A lot of media coverage and official focus has been spent on where the NPS money is invested and its impact on the stock market. In the process, the source and the channels seem to have not received adequate attention. It is time for the government and the regulator to take serious note of the commission’s recommendations and make the NPS a Swachh Pension System.
Source : http://www.business-standard.com
Tuesday 24 November 2015
Monday 23 November 2015
7TH PAY COMMISSION REPORT SUBMITTED TO GOVERNMENT OF INDIA ON 19.11.2015
MOST DISAPPOINTING AND RETROGRADE RECOMMENDATIONS – NO CHANGE IN MACP
IMPORTANT RECOMMENDATIONS
1. DATE OF EFFECT – 01.01.2016
2. MINIMUM PAY – 18000 Based on the Aykroyd formula, the minimum pay in government is recommended to be set at ₹18,000 per month
3. FITMENT FORMULA – The fixation of revised pay has been greatly simplified in the new pay matrix and will not involve further calculations. The basic pay being drawn by any person on the date of implementation is to be multiplied by a factor of 2.57 and the figure so obtained will Report of the Seventh CPC be matched for the closest figure in the level pertaining to his/her existing grade pay and fixed there.
PAY BAND
|
GRADE PAY
|
MULTIBLE FACTOR
|
I – 5200-20200
|
1800, 1900, 2000, 2400 &2800
|
2.57
|
II – 9300 - 34800
|
4200, 4600, 4800 & 5400
|
2.62
|
III – 15600-39100
|
5400, 6600 & 7600
|
2.67
|
Pay Fixation in the New Pay Structure
5.1.28 The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57. The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay. If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. A couple of examples are detailed below to make the process amply clear
5.1.29 The pay in the new pay matrix is to be fixed in the following manner:
Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’.
Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.
Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level.
Example I
i. For example an employee H is presently drawing Basic Pay of ₹55,040 (Pay in the Pay Band ₹46340 + Grade Pay ₹8700 = ₹55040). After multiplying ₹55,040 with 2.57, a figure of ₹1,41,452.80 is arrived at. This is rounded off to ₹1,41,453.
ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.
iii. In the column for level 13, the figure closest to ₹1,41,453 is ₹1,41,600.
iv. Hence the pay of employee H will be fixed at ₹1,41,600 in level 13 in the new pay matrix tabke
5.1.30 As part of its recommendations if Commission has recommended any upgradation or downgrade in the level of a particular post, the person would be placed in the level corresponding to the newly recommended grade pay.
7TH CPC PAY FIXATION ILLUSTRATION
A. Select your basic pay as on 01.01.2016 including grade pay - It is your basic pay
B. Identify your grade pay and pay band to select the Pay Matrix Table No: 5 to identify your level according to your Grade pay
C. Multiply your basic pay as given below:
PAY BAND
|
GRADE PAY
|
MULTIBLE FACTOR
|
I – 5200-20200
|
1800, 1900, 2000, 2400 &2800
|
2.57
|
II – 9300 - 34800
|
4200, 4600, 4800 & 5400
|
2.62
|
III – 15600-39100
|
5400, 6600 & 7600
|
2.67
|
D. Multiply your basic pay [Pay + Grade pay] as on 01,01,2016 with the above factor according to your Grade pay and round-off to the nearest rupee, and obtain result = X
E. The figure so arrived at, i.e., ‘X’ or the next higher figure closest to it in the Level assigned to your grade pay, will be the new pay in the new pay matrix. In case the value of ‘X’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level.
F. The above arrived figure is your Rationalized entry pay i.e. your new basic pay as on 01.01.2016. In the above formula, your existing DA 119 is automatically merged with the multiply factor.
G. This is the first pay commission avoiding disparity in the pay fixation in arriving arrears and all the officials from new recruits to retiring person will get the benefit equally as per the above multiple factor according your Grade pay.
ILLUSTRATION:
PAY BAND
|
GRADE PAY
|
BASIC PAY AS ON 01.01.2016
|
TOTAL PAY AS ON 01.01.2016
|
MULTIBLE FACTOR
|
NEW BASIC PAY AS ON 01.01.2016
|
ROUNDED NEW BASIC PAY AS ON 01.01.2016
|
I
|
1800
|
7500
|
9300
|
2.57
|
23901
|
24200
|
1900
|
8500
|
10400
|
26728
|
26800
| ||
2000
|
9500
|
11500
|
29555
|
30200
| ||
2400
|
11000
|
13400
|
34438
|
35300
| ||
2800
|
13000
|
15800
|
40606
|
41600
| ||
II
|
4200
|
15000
|
19200
|
2.62
|
50304
|
50500
|
4600
|
18000
|
22600
|
59212
|
60400
| ||
4800
|
21000
|
25800
|
67596
|
68000
| ||
5400
|
24000
|
29400
|
77028
|
77900
|
Note: The basic pay mentioned above as on 01.01.2016 is only example for the illustration. You replace it with your basic pay as on 01.01.2016 and calculate your pay. It is simple mechanism.
4. FIXATION ON PROMOTION – NO CHANGE – ONLY ONE INCREMENT IN THE OLD SCALE
A. For those who have been promoted from the previous level, the fixation of pay in the new level will depend on the pay they were already drawing in the previous level, after grant of 3% increment, the official pay will be fixed to the next level.
- When the employee receives a promotion or a non-functional financial upgrade, he/she progresses one level ahead on the horizontal range – Para 5.1.23. [As per this para, if any officials will get LSG/HSG promotion after getting MACP, the officials will get fixation benefit to the next stage as mentioned in Matrix table.]
5. ANNUAL INCREMENT – 3% NO CHANGE
a. Suppose, Ms. ABC, who, after having been fixed in the Pay Matrix, is drawing a Basic Pay of ₹32,300 in Level 4. When she gets an annual increment on 1st of July, she will just move one stage down in the same Level. Hence, after increment, her pay will be ₹33,300. [Even though 3% increment is only for calculation, but the official will be placed one stage own in the same level.
b. WITH HOLDING OF ANNUAL INCREMENT - The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service
6. MODIFIED ASSURED CAREER PROGRESSION – NO CHANGE
a. The inherent issues in the existing pay structure owing to which there was widespread resentment have been set right by way of rationalisation of pay levels, abolition of pay band and grade pay Report of the Seventh CPC and introduction of a matrix based open pay structure. Hence, there is no justification for increasing the frequency of MACP
b. No change in 10, 20, 30 years - Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”. The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service. No other changes in MACP recommended.
7. PAY BAND, GRADE PAY SYSTEM ABOLISHED - Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.
8. MAXIMUM PAY INCREASE – 14.29% - This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the
rate of Dearness Allowance would be 125 percent at the time of implementation [01.01.2016] of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent
Comments: [ Actually our basic pay + Grade pay = 100% DA as on 01.07.2015-119% and as on 01.01.2016 presumed as 125%. As such, at present we are getting 225% [100 + 125} i.e.2.25 , where as our fitment formula recommended as 2.57. The difference of 2.57-2.25 = 0.32 % is the only real increase of our existing pay.]
9. ALLOWANCES – NO IMPROVEMENT
Commission recommended abolition of 52 existing allowances such as Assisting Cashier Allowance, Cash Handling Allowance, Treasury Allowance, Handicapped Allowance, Risk Allowance, Savings Bank Allowance, Special compensatory (Hill Area) Allowance, Cycle Allowance, Family Planning Allowance etc. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.
10. HRA REDUCED TO 26%, 16% AND 8% FOR X, Y AND Z CITIES - Since the Basic Pay has been revised upwards, the Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent
11. Advances: All non-interest bearing Advances have been abolished - Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to ₹25 lakhs from the present ₹7.5 lakhs
12. DA FORMULA – NO CHANGE FOR FUTURE INDEX - Commission recommends continuance of the
existing formula and methodology for calculating the Dearness Allowance
13. Central Government Employees Group Insurance Scheme (CGEGIS): The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:
Present
|
Proposed
| |||
Level of Employee
|
Monthly Deduction
(₹)
|
Insurance Amount
(₹)
|
Monthly Deduction
(₹)
|
Insurance Amount
(₹)
|
10 and above
|
120
|
1,20,000
|
5000
|
50,00,000
|
6 to 9
|
60
|
60,000
|
2500
|
25,00,000
|
1 to 5
|
30
|
30,000
|
1500
|
15,00,000
|
14. COMPARISON BETWEEN MINIMUM AND MAXIMUM PAY – 1:11.4 (18000 : 205400)
15. NUMBER OF PAY SCALES – NOT REDUCED - NO DELAYERING
16. CASUAL LEAVE – NO INCREASE
17. CHILD Care Leave - 1st 365 days – Full pay (100%) - Next 365 days – 80% Pay only.
18. MATERNITY LEAVE – NO CHANGE -
19. LEAVE ENCASHMENT AT THE TIME OF RETIREMENT – NO INCREASE MAXIMUM 300 DAYS ONLY
20. MEDICAL - Medical Insurance Scheme for serving and retired employees recommended.
21. TRANSPORT ALLOWANCE - NO HIKE - ONLY 125% MERGER
Pay Level
|
Higher Transport Allowance cities (A, AI)
|
Other places
|
9 and above
|
7200 + DA
|
3600 + DA
|
3 to 8
|
3600 + DA
|
1800 + DA
|
1 and 2
|
1350 + DA
|
900 + DA
|
22. LEAVE TRAVEL CONCESSION (LTC) – NO CHANGE - Splitting of Home Town LTC for employees Posted in North East, Laddakh, Andaman & Nicobars and Lakshdweep allowed.
23. ACCOUNTS STAFF BELONGING TO UNORGANIZED ACCOUNTS INCLUDING SBCO STAFF – PARITY WITH ORGANISED ACCOUNTS REJECTED - The Commission has noted that the stipulated entry level qualification and recruitment process of Postal Assistants (SBCO) is similar to that of direct recruit Postal Assistants in the Postal Assistants’ cadre and their promotional channel is also identical. The Commission is therefore of the view that no up gradation is warranted
24. PERIODICAL REVIEW OF WAGES (NOT TEN YEARS) RECOMMENDED. NO PAY COMMISSION REQUIRED
25. PERFORMANCE RELATED PAY SHOULD BE INTRODUCED IN GOVERNMENT SERVICES AND ALL BONUS PAYMENT SHOULD BE LINKED TO PRODUCTIVITY - Productivity Linked Bonus for all.
26. COMPULSORY RETIREMENT AND EFFICIENCY BAR REINTRODUCED - Failure to get required bench Mark for promotion within the first 20 years of service will result in stoppage of increment. Such employees who have out lived their ability, their services need not be continued and the continuance of such persons in the service should be discouraged.
27. PROMOTEE AND DIRECT RECRUITS – ENTRY LEVEL PAY ANOMALY IS REMOVED
JCM (SS) demand – the differential entry pay between new recruits and promoted employees should be done away with.
28. CADRE REVIEW TO BE COMPLETED IN A TIME BOUND MANNER - Commission recommended to hasten the process of cadre review and reduced the time taken in inter-ministerial consultations.
29. NEW PENSION SCHEME – WILL CONTINUE
30. CEA & HOSTEL SUBSIDY Rate
CEA per month 2250 - 25% increase when DA crosses
Hostel subsidy 6750 – 50& increase when DA crosses
31. IPO/ASP/SP SCALE UPGRADED : Commission has noted that the VI CPC had placed Inspector (Posts) at par with Inspector of CBDT/CBED. Subsequently the Inspector of CBDT/CBE were elevated to GP 4600. The Commission has further noted that the Inspector of Posts and Inspector of CBDT/CBED are recruited through the same combined graduate level examination. Therefore the commission recommended 4600 GP for IP and 4800 GP and 5400 GP for SPOs.
32. ADDITIONAL WORK ALLOWANCE - 2% of the Basic Pay per month - 10% of the Basic pay if period exceeds 45 days.
33. DAILY ALLOWANCE:
LEVEL
|
ACCOMMODATION CHARGES
|
TRAVELLING CHARGES
|
DAILY ALLOWANCE LUMP SUM AMOUNT
|
14 and above 7500
|
7500
|
AC Taxi charges up to 50 km
|
1200
|
12 and 13 4500
|
4500
|
Non-AC Taxi charges up to 50 km
|
1000
|
9 to 11 2250
|
2250
|
338 per day
|
900
|
6 to 8 750
|
750
|
225 per day
|
800
|
5 and below 450
|
450
|
113 per day
|
500
|
NOTE: The Lump sum amount will increase by 25 percent whenever DA increases by 50 percent.
34. Regarding Personal and HBA interest-bearing advances, the following is recommended
NAME OF THE ADVANCE
|
RECOMMENDED CEILING
|
RECOMMENDATIONS
|
PC Advance
|
50,000 or actual price
of PC, whichever is
lower
|
May be allowed maximum five times in the
entire service.
|
HBA
|
34 times Basic Pay
OR
25 lakh
OR
anticipated price of
house, whichever is
least
|
The requirement of minimum 10 years of continuous service to avail of HBA should be
reduced to 5 years.
If both spouses are government servants,
HBA should be admissible to both separately.
Existing employees who have already taken
Home Loans from banks and other financial
institutions should be allowed to migrate to
this scheme.
|
35. GDS: The Supreme Court judgment also states that GDS are only holders of civil posts but not civilian employees. The Commission endorses this view and therefore has no recommendation with regard to GDS
PENSIONARY BENEFITS
1 . PENSIONERS – PARITY – LONG STANDING DEMAND OF THE PENSIONERS ACCEPTED - The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.
The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix.
This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent.
Fifty percent of the total amount so arrived at shall be the new pension.
An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension. The pensioner will get the higher of the two
2 . PENSIONERS – MINIMUM PENSION RS. 9000/- (50% of the minimum pay recommended by the
7th CPC)
3. . PENSIONERS – GRATUITY - Enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.
4.. PENSIONERS – FIXED MEDICAL ALLOWANCE (FMA) – NO CHANGE (RS. 500/-
5. Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended - Meanwhile, for the benefit of pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis. All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.
6. Ex-gratia Lump sum Compensation to Next of Kin: The Commission is recommending the revision of rates of lump sum compensation for next of kin (NOK) in case of death arising in various circumstances relating to performance of duties, to be applied uniformly for the defence forces personnel and civilians including CAPF personnel.
7. New Pension System: The Commission received many grievances relating to NPS. It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.
8.. Performance Related Pay: The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes.
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