Cabinet clears recommendations of 7th Pay Commission : PTI News

Cabinet clears recommendations of 7th Pay Commission : PTI

New Delhi, Jun 29 (PTI) Recommendations of the 7th Pay Commission got the Cabinet nod today, which will benefit over one crore government employees and pensioners.

The decision to this effect was taken in a meeting which was chaired by Prime Minister Narendra Modi, sources said.

The pay panel, in November last year, had recommended a 14.27 per cent hike in basic pay at junior levels — the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

The government in January had set up a high-powered panel under the Cabinet Secretary to process the recommendations of the 7th Pay Commission that will have a bearing on remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The Commission had recommended a 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore, or nearly 0.7 per cent of GDP.

The entry-level pay has been recommended to be raised to Rs 18,000 per month, from the current Rs 7,000, while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from the current Rs 90,000.

While the Budget for 2016-17 did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.

Source : http://www.ptinews.com/

Comparison of 7th CPC Pay Matrix in respect of Grade Pay

SHRI KHAJA SYED HAMEED HAS PREPARED A COMPARATIVE CHART ON THE RECOMMENDATIONS OF 7TH CPC WHEREIN INCREASE OF PAY HAS BEEN ANALYSISED ON THE BASIS OF EXISTING GRADE PAY. IN THIS METHOD ALSO GROUP C AND GROUP B EMPLOYEES FOUND SUFFERER. THE STATEMENT AS PREPARED BY HIM IS GIVEN BELOW:  VII th Pay Commission Injustice  Dear Sir, I am bringing the following to your knowledge and information of Central Government Staff that VIIth Pay commission has done injustice to 98% of the Central Government Staff by just giving a multiplication factor of around 10 times their existing Grade Pay but generously awarded more than 14 times multiplication benefit to higher officials. So please fight for uniform multiplication of 14 times of the Grade pay and for each year of service one increment at the new scale as recommended to retired employees to give justice to all.  PB I Rs 5200-20200 Grade Pay Minimum recommended @ entry level by 7th CPC (Rs) in the Pay Matrix Multiplication factor by VII th pay Commission 1800 18000 10 times 1900 19900 (difference +1900) 10.47 2000 21700(difference +1800) 10.85 2400 25500(difference +3700) 10.62 2800 29200(difference +3800) 10.42 Initially for first 2 stages every Rs100/ in GP the corresponding proposed increase is 1800 0r 1900 but for GP difference of Rs 400/ at later 2 stages the corresponding increase is only Rs3700/ to Rs3800/- whereas it must be Rs1800 0r 1900 multiplied by 4times to Rs7200-7600/. PB II Rs 9300-34800  Grade Pay Minimum recommended @ entry level by 7th CPC (Rs) in pay matrix Multiplication factor by VII th pay Commission 4200 35400(difference +6200) 8.42 times 4600 44900 (difference +9500) 9.76 4800 47600(difference +2700) 9.91 5400 53100(difference +5500) 9.83 Initially for Rs1400/- GP difference the corresponding increase proposed is Rs6200/- but in next stage for Rs400/-GP the proposed hike is mind blowing Rs9500/-,in next stage for Rs200/-GP the increase is Rs2700/- and for Rs600/-GP hike further increase is Rs5500/- View 7th CPC Pay Structure (Civilian Employees) PB III Rs 15600-39100  Grade Pay Minimum recommended @ entry level by 7th CPC (Rs) in the Pay matrix Multiplication factor by VII th pay Commission 5400 56100 10.38times 6600 67700 (difference +11600) 10.25 7600 78800(difference +11100) 10.36 For a GP of Rs1200/- difference the hike proposed is Rs11600/- and for another Rs1000/- GP increase the increase given by CPC is Rs 11100/- PB IV Rs 37400-67000  Grade Pay Minimum recommended @ entry level by 7th CPC (Rs)in the Pay matrix Multiplication factor by VII th pay Commission 8700 118500(difference +39700) 13.62 times 8900 131100 (difference +12600) 14.73 10000 144200(difference +13100) 14.42 For a GP increase of Rs1100/- the CPC proposed a hike of Rs39700/- and for a GP difference of Rs200/- the CPC recommended a increase of Rs12600/- and for a GP increase of Rs1100/- the CPC recommended a hike of Rs13100/- It will easily understood the members of VIIth Pay commission done fixation and recommendation quite irrationally without any uniformity in a whimsical manner. If 14 times multiplication is awarded to all the staff uniformly Min.Basic will be Rs1800* 14 = 25200/-for entry level staff. Kindly publish this in your website.  Kindly fight for justice.  Thanking you Sir,  Yours sincerely  Dr.Hameed Source : aiamshq 



Read more at: http://potools.blogspot.in/2016/06/comparison-of-7th-cpc-pay-matrix-in.html

BAD NEWS - 7TH CPC : No Change In Entry Label Pay By High Powered Panel

The entry-level pay has been recommended to be raised to Rs 18,000 per month, from the current Rs 7,000, while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from the current Rs 90,000.



Read more at: http://potools.blogspot.in/2016/06/bad-news-7th-cpc-no-change-in-entry.html

Cabinet approves 7th Pay Commission recommendations

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The Union Cabinet on Wednesday approved the recommendations made by the 7th pay commission, news agency ANI reported. The details of the approval, which will be made public soon, is likely to see a higher increase in the basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners. The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008. After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent. The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments.



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7th Pay Commission – Cabinet Note put up by Finance Ministry to come up for approval

7th Pay Commission – Finance Ministry Cabinet Note to come up for approval on 29th June 2016 -Decision on 7th Pay Commission without negotiation to result in strike. It seems that Govt. is not in favour of a negotiated settlement on the 7th CPC related issues. Based on the ECoS report, the Finance Ministry may be preparing a Cabinet note and the issue may come up for approval by the Cabinet as early as June 29. The Seventh CPC report was submitted on 19th November 2015 after a delay of about 3 months. The Government especially the Finance Minister had assured that the final decision over the report will be taken within 4 months. On 19th June 2016, the delay has crossed seven months. Till date the Govt. has not come forward for a negotiated settlement. Instead, Empowered Committee of Secretaries (ECoS) headed by Cabinet Secretary conducted a meeting with the staff side on 1st March 2016. In the meeting Govt. did not disclose its mind on any of the demands raised by the staff Side in the charter of demands submitted to Govt. Staff Side explained the justification for each demand but official side didn’t make any comment, either positive or negative. The concluding paragraph of the minutes of the meeting reads as follows: “After hearing the participants, Cabinet Secretary observed that the deliberations have helped ECoS in understanding the major concerns of the staff side and said that all issues have been taken note of. He assured that fair consideration will be given to all points brought out by JCM before taking final views. He further stated that the ECoS needs to examine the Report of the Commission in entirety as well as the issues raised by JCM in consultation with all other stake holders. As such, it may take some time to take a final call on the recommendations of the Commission.” It may be seen that, neither did the Govt. side made any commitment on any demands, nor did they indicate in the minutes that further discussion will be held with the staff side to arrive at a negotiated settlement on each demands. It seems that the Govt. is moving ahead to issue unilateral orders taking the staff side for a ride. The JCM staff side Secretary, in his letter dated 2nd May 2016, addressed to Cabinet Secretary, has made the stand of the staff side clear, without any ambiguity. The letter reads as follows: “I have been directed to draw your attention towards minutes of the Standing Committee of National Council JCM held on 7th May 2008 and our rejoinder submitted to Govt. in the matter of Report of 6th CPC. You will kindly find that it was not only a general discussion, but also official side explained their views on each and every issue. I would therefore request your good self to kindly arrange for similar type of meeting for bi-lateral settlement on each of the issues raised by the staff side, NC/JCM before the Empowered Committee of Secretaries.” Thus the picture is clear now. The Government, it seems, has a hidden agenda to take the staff side for granted without giving any further opportunity for a negotiated settlement. The staff side on the other hand has taken a position that if unilateral orders are issued, without taking the staff side into confidence, the NJCA shall go ahead with the indefinite strike from 11th July 2016 as already informed to the Govt. The coming days are crucial. If the Govt. adopts delaying tactics or issue unilateral orders rejecting our demands, then confrontation shall become inevitable. The stand taken by the then Nehru Govt. that “Pay Commission report is an award and is not negotiable” has resulted in the historic indefinite strike of 1960, which commenced on July 11th midnight. Central Government Employees and Officers comprising Railways, Defence, Postal and other Central Government departments are demanding modification in the recommendations of 7th Central Pay Commissions including minimum wage and fitment formula. Other demands are scrapping of New Contributory Pension Scheme, No FDI in Railways and Defence, filling up of vacancies, No outsourcing, downsizing, contractorisation and corporatisation etc. The NJCA & CCGGOO had already given strike notice to Government. As the Government is not ready for a negotiated settlement, the Central Government employees and Officers have to intensify the campaign and preparations and make the strike a total success. About 33 lakhs Central Government Employees and Officers will participate in the strike. 40 lakhs Central Government Pensioners have declared their solidarity with the strike. Central Trade Unions had also extended their full support. State Government Employees Federations have cautioned the Central Government that they will also be compelled to join the strike if Government refuses to settle the demands relating to 7th CPC recommendations as majority of the state Governments are implementing the Central pay parity to their employees also. On the one hand NJCA & CCGGOO are fighting for the cause of Central Government Employees and Officers and on the other hand rumour mongers are spreading false news through social media. Rumour mongers are coming out daily with different kind of news and pay scales about 7th Pay Commission. Please don’t believe rumour mongers on WhatsApp, Facebook and other social media sources. There had been no meaningful discussions with the NJCA & CCGGOO so far. The computation of Minimum wage by the 7th CPC deserves to be rejected as the commission has, in a bid to suppress the entitlement doctored the formula itself. The wages of an MTS in civil service, who is a group C employee cannot be less than Rs 26000 on the basis of the formula evolved in 1957 to which the Government is a party. There cannot therefore be any question of reduction in the quantum of minimum wage. The NPS, which the Government introduced for those joined after 1.1.2004 in Government service has to be construed as a fraud perpetuated and deserves to be abandoned. There cannot be two classes of civil servants in the country; one making contribution but still not getting any assured pension and the other entitled for a statutory defined pension without any contribution. Those who are covered by the NPS in Central Civil Service are now more than 40% of the total personnel. The Government must be bold enough to address this issue. It is high time, that the Government comes forward, hold meaningful and fruitful discussion with NJCA & CCGGOO and settle the Charter of demands. The continued procrastination is a sure step to confrontation and the Central government employees in the Country will certainly commence the strike action from 11.7.2016. The entire civil services, which include the Railways, Postal, Defence and all other services of the Government of India, will come to a grinding halt on 11.7.2016. 



Read more at: http://potools.blogspot.in/2016/06/7th-pay-commission-cabinet-note-put-up.html

Union Cabinet likely to discuss report on recommendations of 7th Pay Commission today

Union Cabinet likely to discuss report on recommendations of 7th Pay Commission today The Cabinet is likely to discuss the recommendations of the 7th Pay Commission today. The recommendations will result in a hike in salaries of over one crore government employees and pensioners. The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels. The entry level pay has been recommended to be raised to 18,000 rupees per month from current 7,000 rupees while the maximum pay, drawn by the Cabinet Secretary, has been fixed at 2.5 lakh rupees per month from current 90,000 rupees. The date of implementation for the recommendations of 7th Pay Commission is from 1st of January this year. As per government estimates, the total financial impact of implementing the pay commission recommendations in the 2016-17 fiscal is likely to be 1.02 lakh crore rupees.



Read more at: http://potools.blogspot.in/2016/06/union-cabinet-likely-to-discuss-report.html

Implementation of 7th CPC : Finance Ministry prepared a Cabinet note based on ECoS report – AIDTOA

Based on the ECoS report, the Finance Ministry may be preparing a Cabinet note and the VII CPC issue may come up for approval by the Cabinet as early as June 29. GOVT SHOULD NOT TAKE THE CENTRAL GOVT. EMPLOYEES & OFFICERS FOR A RIDE. CONFRONTATION WILL BECOME INEVITABLE IF UNILATERAL ORDERS ARE ISSUED It seems that Govt. is not in favour of a negotiated settlement on the 7th CPC related issues. Based on the ECoS report, the Finance Ministry may be preparing a Cabinet note and the issue may come up for approval by the Cabinet as early as June 29. The Seventh CPC report was submitted on 19th November 2015 after a delay of about 3 months. The Government especially the Finance Minister had assured that the final decision over the report will be taken within 4 months. On 19th June 2016, the delay has crossed seven months. Till date the Govt. has not come forward for a negotiated settlement. Instead, Empowered Committee of Secretaries (ECoS) headed by Cabinet Secretary conducted a meeting with the staff side on 1st March 2016. In the meeting Govt. did not disclose its mind on any of the demands raised by the staff Side in the charter of demands submitted to Govt. Staff Side explained the justification for each demand but official side didn’t make any comment, either positive or negative. The concluding paragraph of the minutes of the meeting reads as follows: “After hearing the participants, Cabinet Secretary observed that the deliberations have helped ECoS in understanding the major concerns of the staff side and said that all issues have been taken note of. He assured that fair consideration will be given to all points brought out by JCM before taking final views. He further stated that the ECoS needs to examine the Report of the Commission in entirety as well as the issues raised by JCM in consultation with all other stake holders. As such, it may take some time to take a final call on the recommendations of the Commission.” It may be seen that, neither did the Govt. side made any commitment on any demands, nor did they indicate in the minutes that further discussion will be held with the staff side to arrive at a negotiated settlement on each demands. It seems that the Govt. is moving ahead to issue unilateral orders taking the staff side for a ride. The JCM staff side Secretary, in his letter dated 2nd May 2016, addressed to Cabinet Secretary, has made the stand of the staff side clear, without any ambiguity. The letter reads as follows: “I have been directed to draw your attention towards minutes of the Standing Committee of National Council JCM held on 7th May 2008 and our rejoinder submitted to Govt. in the matter of Report of 6th CPC. You will kindly find that it was not only a general discussion, but also official side explained their views on each and every issue. I would therefore request your good self to kindly arrange for similar type of meeting for bi-lateral settlement on each of the issues raised by the staff side, NC/JCM before the Empowered Committee of Secretaries.” Thus the picture is clear now. The Government, it seems, has a hidden agenda to take the staff side for granted without giving any further opportunity for a negotiated settlement. The staff side on the other hand has taken a position that if unilateral orders are issued, without taking the staff side into confidence, the NJCA shall go ahead with the indefinite strike from 11th July 2016 as already informed to the Govt. The coming days are crucial. If the Govt. adopts delaying tactics or issue unilateral orders rejecting our demands, then confrontation shall become inevitable. The stand taken by the then Nehru Govt. that “Pay Commission report is an award and is not negotiable” has resulted in the historic indefinite strike of 1960, which commenced on July 11th midnight. Central Government Employees and Officers comprising Railways, Defence, Postal and other Central Government departments are demanding modification in the recommendations of 7th Central Pay Commissions including minimum wage and fitment formula. Other demands are scrapping of New Contributory Pension Scheme, No FDI in Railways and Defence, filling up of vacancies, No outsourcing, downsizing, contractorisation and corporatisation etc. The NJCA & CCGGOO had already given strike notice to Government. As the Government is not ready for a negotiated settlement, the Central Government employees and Officers have to intensify the campaign and preparations and make the strike a total success. About 33 lakhs Central Government Employees and Officers will participate in the strike. 40 lakhs Central Government Pensioners have declared their solidarity with the strike. Central Trade Unions had also extended their full support. State Government Employees Federations have cautioned the Central Government that they will also be compelled to join the strike if Government refuses to settle the demands relating to 7th CPC recommendations as majority of the state Governments are implementing the Central pay parity to their employees also. On the one hand NJCA & CCGGOO are fighting for the cause of Central Government Employees and Officers and on the other hand rumour mongers are spreading false news through social media. Rumour mongers are coming out daily with different kind of news and pay scales about 7th Pay Commission. Please don’t believe rumour mongers on WhatsApp, Facebook and other social media sources. There had been no meaningful discussions with the NJCA & CCGGOO so far. The computation of Minimum wage by the 7th CPC deserves to be rejected as the commission has, in a bid to suppress the entitlement doctored the formula itself. The wages of an MTS in civil service, who is a group C employee cannot be less than Rs 26000 on the basis of the formula evolved in 1957 to which the Government is a party. There cannot therefore be any question of reduction in the quantum of minimum wage. The NPS, which the Government introduced for those joined after 1.1.2004 in Government service has to be construed as a fraud perpetuated and deserves to be abandoned. There cannot be two classes of civil servants in the country; one making contribution but still not getting any assured pension and the other entitled for a statutory defined pension without any contribution. Those who are covered by the NPS in Central Civil Service are now more than 40% of the total personnel. The Government must be bold enough to address this issue. It is high time, that the Government comes forward, hold meaningful and fruitful discussion with NJCA & CCGGOO and settle the Charter of demands. The continued procrastination is a sure step to confrontation and the Central government employees in the Country will certainly commence the strike action from 11.7.2016. The entire civil services, which include the Railways, Postal, Defence and all other services of the Government of India, will come to a grinding halt on 11.7.2016. Source: aidrdotoa



Read more at: http://potools.blogspot.in/2016/06/implementation-of-7th-cpc-finance.html

AIAPS Will Oppose The India Post Payment Bank While Tomorrow Meeting At Directorate

All India Association of Postal Supervisors - trade union shall oppose India Post Payment Bank firmly because of the following reasons. IPPB is not a government entity and by using government assets as lean operating model, it shall be performed as a corporation. It is like functioning SBI in our post offices by sucking our resources If two Savings sectors are running under one roof then it shall swallow our POSB accounts volume, and one fine day our POSB schemes shall be merged with IPPB. That means POSB wing may be privatized or corporatized. Above point is not derived imaginary. As per the task force committee recommendations they are implementing this While attend the meeting tomorrow, 29.6.16 regarding IPPB, Comments shall be given as.. At any cost DOP assets, infrastructure, staffs should be utilised for IPPB since it is corporate entity and DOP is government entity. Already ATM/Mobile banking facilities/Net banking facilities are available in POSB schemes itself. If required IPPB shall be merged into DOP-POSB instead of bringing new entity. Among POSB schemes in addition to that current accounts, payment gateway facility may be provided to citizen of India.



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Expected News about 7th Pay Commission from Delhi

7th Pay Commission Expected news Report to be placed in cabinet tomorrow. 29.06.2016 Sources confirm that the Implementation committee has already submitted its report to the Government and likely to be placed for approval / acceptance of the Government on its cabinet committee meeting to be held on 29.06.2016.. Related expected news NO minimum pay has been recommended by the implementation committee and has left to the Government to decide on the minimum pay.. However the minimum pay is expected around 21000/- to 22750/- ( 3 to 3.25 times) Several Departments have suggested upgradation of pay scales to some of their cadres . Few allowances has been recommended for restoration . Small family norms to continue Grade Pay of Postal Assistant has been suggested for 2800/- on it multitasking and towards implementation of Post Bank. Postmaster cadre has also been suggested for 4200/- grade pay which is likely to be accepted. Fitment formula would be around 2.97 to 3.25 for existing pay scales.. Increment suggested at 4% against 3% Promotion on MACP will attract 5% increase in the existing scale along with 4% additional increments. Anomaly committee to be constituted along with the implementation for any such arising out of the recommendations which would finally settle all anomalies within a period of 6 months. All the above points are yet to be confirmed by the report and not final. There may be some additional increase in the following cases Minimum scale Allowances Fixation and fitment formulae. Delhi sources.



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Centre to announce Pay, Pension hikes for its Employees this evening

Pay panel had estimated that implementation of its recommendations
could result in an additional burden of Rs. 1.02 lakh crore to the exchequer. 

The Union Cabinet on Wednesday approved the recommendations of the Seventh Pay Commission with minor changes, a top official source told The Hindu. Union Finance Minister Arun Jaitley, who left for Chandigarh soon after the Cabinet meeting, will announce the hikes this evening.

The Finance Ministry, which had recommended a 23.55 per cent overall hike in salaries and pensions for over 1 crore central government employees, pensioners, in line with the Commission’s recommendations, is fine-tuning the details, the source said.

The pay panel had estimated that implementation of its recommendations could result in an additional burden of Rs. 1.02 lakh crore to the exchequer.

In November 2015, within the overall hike of 23.55-per cent, the pay panel had recommended increases of 16% in pay and 24 per cent in pensions. Its estimate is that these recommendations could result in an additional outgo of nearly 0.65 per cent of the GDP.

The previous ommission had recommended a 20-per cent hike, which the UPA government doubled while implementing it in 2008. The resultant hit to the exchequer of 0.77% of GDP doubled the Centre’s fiscal deficit to 6 per cent in 2008-09, the year it was implemented.

Hikes effective from January

The hikes are likely to be effective from January 1. The arrears are likely to be paid in one go. Of the total financial impact of Rs. 1.02 lakh crore, the panel proposed Rs. 73,650 crore be borne by the general budget and the remaining Rs. 24,450 crore by the railway budget. It suggested raising the entry level pay to Rs. 18,000 a month from the current Rs.7,000. The recommended maximum pay, drawn by the Cabinet Secretary, is Rs. 2.5 lakh per month against the current Rs. 90,000.

Earlier, a secretaries’ panel, headed Cabinet Secretary P K Sinha, vetted the pay panel’s recommendations that will impact remunerations of nearly 50 lakh Central government employees and 58 lakh pensioners.

Source : http://www.thehindu.com/

7th Pay Commission: Allowances to Pension - Here’s everything you need to know

Here is everything you need to know about the proposed recommendations in the 7th Pay Commission. Read more to find out what the changes are, if accepted by the Cabinet.

Here is everything you need to know about the proposed recommendations in the 7th Pay Commission.

The Union Cabinet is expected to take up on Wednesday the Empowered Committee of Secretaries’s report on the 7th Pay Commission.

The Empowered Committee of Secretaries, which was formed to look into recommendations of the Seventh Pay Commission, has finalised its report, Finance Secretary Ashok Lavasa said.

Here is everything you need to know about the proposed recommendations in the 7th Pay Commission. Read more to find out what the Pay Commission changes are, if accepted by the Cabinet.

Date of implementation

The recommended date of implementation is January 1, 2016. So, government employees will get arrears from January this year.

Minimum Pay

Based on the Aykroyd formula, the minimum pay in government is recommended to be set at Rs 18,000 per month.

Maximum Pay

Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

What are the financial implications?

The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, over the expenditure as per the Business As Usual scenario. Of this, the increase in pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore and increase in pension would be Rs 33,700 crore.

Out of the total financial impact of Rs 1,02,100 crore, Rs 73,650 crore will be borne by the General Budget and Rs 28,450 crore by the Railway Budget.

In percentage terms the overall increase in pay & allowances and pensions over the Business As Usual scenario will be 23.55 per cent. Within this, the increase in pay will be 16 per cent, increase in allowances will be 63 per cent, and increase in pension would be 24 per cent.

The total impact of the Commission’s recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay+Allowances+
Pension) to GDP compared to 0.77 per cent in case of 6th Central Pay Commission.

What is the New Pay Structure?

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.

Fitment
A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.

Annual Increment

The rate of annual increment is being retained at 3 per cent.

Modified Assured Career Progression (MACP)

* 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.

Military Service Pay (MSP)

The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows:

Short Service Commissioned Officers

Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. They will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute.

Lateral Entry/Settlement

The Commission is recommending a revised formulation for lateral entry/resettlement of defence forces personnel which keeps in view the specific requirements of organization to which such personnel will be absorbed. For lateral entry into CAPFs an attractive severance package has been recommended.

Headquarters/Field Parity

Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.

Cadre Review

A systemic change in the process of Cadre Review for Group A officers recommended.

Allowances

The Commission has recommended abolishing 52 allowances altogether.

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.

Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance.

The current Siachen Allowance per month and the revised rates recommended are as follows:

House Rent Allowance

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 per cent 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 per cent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 per cent and 10 per cent when DA crosses 100 per cent.

In the case of PBORs of Defence, CAPFs and Indian Coast Guard compensation for housing is presently limited to the authorised married establishment hence many users are being deprived. The HRA coverage has now been expanded to cover all.

Any allowance not mentioned in the report shall cease to exist.

Emphasis has also been placed on simplifying the process of claiming allowances.

Advances: a. All non-interest bearing Advances have been abolished. b. Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs 25 lakh from the present Rs 7.5 lakh.

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:

Medical Facilities

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.

Pension

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. In the case of defence forces personnel this amount will include Military Service Pay as admissible.

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.

Gratuity

Enhancement in the ceiling of gratuity from the existing Rs 10 lakh to Rs 20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.
Disability Pension for Armed Forces

The Commission is recommending reverting to a slab based system for disability element, instead of existing percentile based disability pension regime.

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.

Martyr Status for CAPF Personnel

The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel.

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.

Regulatory Bodies

The Commission has recommended a consolidated pay package of Rs 4,50,000 and Rs 4,00,000 per month for Chairpersons and Members respectively of select Regulatory bodies. In case of retired government servants, their pension will not be deducted from their consolidated pay. The consolidated pay package will be raised by 25 percent as and when Dearness Allowance goes up by 50 percent. For Members of the remaining Regulatory bodies normal replacement pay has been recommended.

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.

Source : The Indian Express

7th CPC to get Cabinet nod soon, here’s why you will get 10 per cent less arrears in hand

The 7th Central Pay Commission recommendations are likely to be cleared by the Union Cabinet on Wednesday, leading to a much-awaited bonanza for 47 lakh central government employees and 53 lakh pensioners in the form of higher salaries and arrears from January 1, 2016, the date from which the recommendations will be made applicable.

However, if you are one of the working central government employees your arrears would come with a 10 per cent applicable deduction, that would be passed on to the National Pension System (NPS). Similar deductions are applicable to the increased salary component.

The 10 percent deduction from arrears and salary will come with a matching contribution from the government into the NPS for managing for creating a pension corpus at the time of retirement.

“The arrears that Central government employees will get with effect from January 2016 will come with 10 per cent deduction which will flow into their individual accounts under the NPS. There will be a matching contribution from the government,” Chairman, Pension Fund Regulatory and Development Authority (PFRDA), Hemant Contractor, told FeMoney.

It is expected that the increased salary and arrears would take effect from August 1, 2016.

Contractor said that the total amount that would flow into the NPS kitty from the 7th Pay Commission would be substantial. “We are expecting the money arising out of 7th Central Pay Commission recommendations will be released soon. The increased flow would be substantial. However, we have not been able to make an exact calcuation on the amount since we do not know the payment schedule. The amount would depend on the time and amount of arreards released in each tranche if it is released in parts,” the PFRDA Chairman said.

NPS is applicable to all employees joining services of Central Government, including Central Autonomous Bodies (except Armed Forces) on or after January 1, 2004. Many State Governments have adopted NPS architecture and implemented NPS mandatorily for their employees joining on or after a cut-off date.

A subscriber contributes 10 per cent of his salary plus DA into his Tier-I (pension) account on a mandatory basis every month which is invested along with the matching contribution from the employer.

The accumlation is managed by select pension fund managers (PFMs) as per guidelines laid down by PFRDA and is used for old age income benefit of subscribers. The pension regulator administer the National Pension System.

The 7th Pay Commission has recommended a 23.55 per cent hike in pay and allowance. While pay will go up by 16 per cent, increase in allowance will be 63 per cent and increase in pension 24 per cent. The impact the 7th Pay Commission recommendations on the government coffers will be to the tune of Rs 1.02 lakh crore, with Rs 73,650 crore impactg on the Union Budget and Rs 28,450 crore on the Railway Budget.

Source : http://www.financialexpress.com/

Centre may choose to disburse the increased allowances recommended by 7th CPC only prospectively: Financial Express

The Cabinet is likely to approve the 7th Pay Commission award in its entirety soon. Although the pay increases recommended by the commission will take effect from January 1, 2016, the Centre may choose to disburse the increased allowances only prospectively, official sources said.

If the revised allowances take effect only from, say, September this year, the savings to the exchequer would be to the tune of Rs 11,000 crore. Additionally, if the railway ministry decided to toe the Centre’s line, the national transporter will save around Rs 3,800 crore.

The salary revision, which will benefit about 50 lakh government employees and 58 lakh pensioners, is expected to boost consumption demand and help achieve higher economic growth in FY17.

Allowances are currently roughly half of the Centre’s salary bill; as per the pay panel’s award, the steepest increase — 63% — was in allowances, while the overall rise in pay, allowances and pensions recommended was 23.55%.

The Budget in February had provided `53,500 crore towards the pay panel-induced overall rise in pay, allowances and pension (PAP) and also to finance the one-rank-one-pension scheme for the armed forces. The commission, in its November 2015 report, had estimated the additional outgo in FY17 due to its award at `73,650 crore.

“A Committee of Secretaries (headed by the Cabinet secretary PK Sinha), has finalised its report on Pay Commission recommendations… We will soon make a draft Cabinet note based on the report,” finance secretary Ashok Lavasa said. Sources said the report will be considered by the Cabinet as early as Wednesday. The committee was set up in January.

While there is no official word on the exact provision made in budget for higher pay, Lavasa in a recent interview to FE said that its premature to say whether the provisions made in the budget are adequate or not to meet the pay panel requirements.

Cabinet Committee May Decide 7th Pay Commission Report On 29.6.2016 (Tomorrow)

Cabinet Committee May Decide 7th Pay Commission Report On 29.6.2016 (Tomorrow)

15-20 % hike likely in Seventh Pay Commission, decision on Wednesday

Highly placed sources have told India Today that Prime Minister Narendra Modi has asked the Finance Ministry to place the recommendations of the Cabinet Secretary’s report on the seventh Pay Commission in the next Cabinet meeting on June 29.

In what promises to be a big bonanza for central government employees, a hike of 15-20 per cent in salaries is expected to be proposed under the Seventh Pay Commission.

Highly placed sources have told India Today that Prime Minister Narendra Modi today asked the Finance Ministry to place the recommendations of the Cabinet Secretary’s report on the seventh Pay Commission in the next Cabinet meeting on June 29.

Sources say that government employees are likely to get a pay hike of between 15-20 per cent over their current compensation with sources saying the recommendations of the pay commission are likely to be accepted by the Modi government.

In January, the government had set up a high-powered panel headed by Cabinet Secretary PK Sinha to process the recommendations of the Seventh Pay Commission.

Over 98.4 lakh government employees will be impacted by the Seventh Pay Commission recommendations. This figure includes 52 lakh pensioners

Source: www.indiatoday.in

Committee of Secretaries has finalised its report on 7th CPC recommendations: Finance Secretary

Committee of Secretaries has finalised its report on 7th CPC recommendations. We will soon draft Cabinet note based on the report: Finance Secretary 

The government is likely to soon announce the implementation of Seventh Pay Commission that would hike the salaries and allowances for over 1 crore government employees and pensioners by at least 23.5 per cent.

A Committee of Secretaries headed by Cabinet Secretary P.K. Sinha has submitted its report on the recommendations of the Seventh Pay Commission which may be accepted, a financial ministry official said.

Based on the panel’s report, the Finance Ministry is preparing a Cabinet note and the issue may come up for approval by the Cabinet as early as June 29.

“Committee of Secretaries (CoS) has finalised its report on Pay Commission recommendations... We will soon (file) draft Cabinet note based on the report,” Finance Secretary Ashok Lavasa said here on Monday.

The government had in January set up a high-powered panel headed by Cabinet Secretary to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The Pay Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP.

The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

The 23.55 per cent increase includes hike in allowances.

The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.

Sources said the secretaries’ panel may have recommended higher pay increase, with minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.

While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.

Around Rs 70,000 crore has been provisioned for it, officials said.

Mr. Lavasa said the Seventh Pay Commission report will be effective from January 1.

This news was published in 'The Hindu' on 27.06.2016

http://www.thehindu.com

Cabinet is likely to take up 7th Pay Commission recommendations for Central Government employees on June 29

Cabinet is likely to take up 7th Pay Commission recommendations for Central Government employees on June 29

The Cabinet is likely to take up Seventh Pay Commission recommendations for government employees on June 29.

Implementation of new pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs 1.02 lakh crore on the exchequer annually.

Finance Minister Arun Jaitley had in his Budget for 2016-17 provisioned Rs 70,000 crore towards Seventh Pay Commission awards, which is around 60 per cent of the incremental expenditure on salaries.

The Pay Commission’s recommendations are due from January 1, 2016.

The central government constitutes the pay commission every 10 years to revise the pay scales of its employees. The Commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 55 lakh pensioners.

Source : NDTV Profit