Friday, 23 May 2014

When will the 7th CPC submit its recommendations? When will the recommendations of 7th CPC be implemented?

When will the 7th CPC submit its recommendations? When will the recommendations of 7th CPC be implemented?

These questions are now constantly on the minds of Central Government employees!

Although highly placed sources say that the commission will compile its reports and recommendations in 18 months and that these recommendations will be implemented on 01.01.2016, there are also many who wonder aloud because there are no official confirmations yet.

This is not an exaggeration. The proof lies in the fact that two months ago, the question was raised in the Parliament. While the Terms of Reference make it clear that the Panel Committee has given 18 months time for the 7th CPC to submit its recommendations, a question was raised on when the report would be submitted. The concerned minister’s reply was vague. In other words, there was no concrete announcement.
Let us hope that the Commission submits its reports and recommendations on time.

7th Pay Commission is seeking the considered views of all stakeholders

7th Pay Commission is seeking for suggestions on various issues

The 7th Pay Commission compiled a list of questions and sent it along with a circular to all the Ministries/Departments of Indian Government, inviting their suggestions. It has come to our knowledge that the circular was also sent to all the Central Government employee federations. This could be treated as a irrefutable proof of the fact that the 7th Pay Commission has already started its work! 

Although this is part of the usual procedure, it is a well known fact that Central Government employees treat certain questions as an indication of the mindset of the 7th Pay Commission. 

Let’s see the questions…

What kind of impact did the 6th Pay Commission’s reforms on the Pay Scale structure have, when they were implemented? Do you think such changes were required? The Pay Commission has included questions about the results and procedures of reducing Pay Scale and Pay Bands. 

Has Grade Pay Concept been effective? If no, the Commission wants to know what could be done to get the desired results. 

The questions regarding increments have triggered curiosity and interest. Has the purpose behind making July 1 the date of implementing the annual increment, served its purpose? Or, are there any changes required in it?
With annual increment fixed at 3%, what, according to you, would be a reasonable and acceptable level?

What are the pros and cons of the MACP Scheme?
House Rent Allowance is currently being given according to three categories, based on the population of the city. What criteria should be taken into account for the calculation of House Rent Allowance? This particular question assumes great significance.

Questions have been raised about the ratio of the salary of the lowest level employee and the top management. While debates on this issue have been on for a while now, it is worth pointing out that the question has also appeared on the 7th Pay Commission’s list. 

The list also has questions and a number of sub-questions about raising Government salaries to match the payments given in private sectors. 

Questions have been asked about the possibility of incorporating attributes like talent and performance in job evaluation.  

The sub-list also has questions regarding bonus, variable increments, performance-based schemes, State Government employees’ pay scales, and pensions. 

One thing is for sure – the circular and its questions have become the hottest topic of discussion and countless debates among government employees right now. 


7th CPC Report – When is it going to be submitted?

7th CPC Report – When is it going to be submitted

7th Pay Commission Report and the Need for Timeliness 

Background of the 7th Pay Commission

The 7th pay commission report – when is it going to be submitted?
The announcement about the 7th pay commission report came out on September the 25th of 2013. This pay commission unlike the 6th pay commission was set up well in advance. This became possible due to significant efforts of various organisations, union lists and the finance commission report. Announcements say that the 7th pay commission will be implemented from 1.1.2016 and it will take approximately 18 months time for the report to be submitted. 

Recently, the 7th pay commission Chairman and the members gave out a public statement on 4.2.2014 and after that on 22.2.2014 the important 7th cpc terms and references were released. Now, the thought that floats on everyone’s mind is whether the 7th pay commission report will be submitted within the 18 months time period and will the employees be able to get the benefits along with their salary from 1.1.2016.
Recently, in the Lok Shaba during the question and answer session, it was pointed out that no specific time limit can be specified as of now for the implementation of the 7th pay commission. However, the finance ministry is now recruiting people for the 7th pay commission pay cell on deputation basis. This is a good attempt which boosts our confidence in the fact that the 7th pay commission will be put into effect on time. 

Reports of the Earlier Pay Commissions

If the employees get the benefits of the 7th pay commission along with our salary on 1.1.2016, then, this will be the first time we are given the pay commission benefits without arrears. I am providing a link containing reports about when the previous pay commissions were set and when they were implemented.

Pay Commission Date of Appointment Date of submission of report Financial impact (Rs. In crores) Time
First Pay Commission May, 1946 May, 1947 N.A 1 YEAR
Second Pay Commission August, 1957 August, 1959 39.62 2 YEARS
Third Pay Commission April, 1970 March, 1973 144.60 3 YEARS (aprx)
Fourth Pay Commission June, 1983 3 reports submitted in June, 1986; Dec. 1986 and May, 1987 1282 4 YEARS(aprx)
Fifth Pay Commission April, 1994 January, 1997 17,000 3YEARS (aprx)
Sixth pay commission July 2006 March 2008 18 months

Arrears of the 6th Pay Commission :- When you see the timetable above, you can understand that none of the previous pay commissions were implemented on time and without the payment of arrears. When the 6th pay commission was implemented, the government paid a huge amount as arrears in two instalments. This impacted the economy considerably and caused changes in inflation rate and GDP. This shocking fact was revealed by the 13th finance committee report. 

The Benefits of the Timely Implementation of the 7th Pay Commission :- What benefits will the employees get if the 7th pay commission is implemented on 1.1.2016? Let us have a look. 

Firstly, all the allowances and benefits can be got on 1.1.2016. When the benefits are paid as arrears the employees will not get some of the allowances due to exclusion. 

Secondly, the government will not have to pay a huge amount as arrears and thereby can avoid economic burden. 

Thirdly, if a National Anomaly Committee is set up and the shortcomings of the 7th pay commission are corrected immediately, employees can receive the benefits easily. We have to note that several points mentioned the anomaly committee report of the 6th pay commission still remain problematic and uncorrected. 

Fourthly, let us have a look at the elements of ACP and MACP. Like the ACP and MACP, the financial up gradation is going to be introduced in the 7th Pay Commission; the issues that may arise due to this have to be resolved in a timely manner so that everyone may be benefitted by it.   In the 5th pay commission, the time limit for promotion through ACP remained at 12 years, and in the 6th pay commission the time limit for promotions through MACP remained at 10 years. In the 5th pay commission, a new method of promotion through hierarchy was introduced. In the 6th pay commission promotions happened through grade pay structure. 

The main aim of introducing ACP and MACP is to make sure that an employee gets minimal promotion at least thrice in his life time of service. If this is the case, the minimal service period of an employee should be at least 30 years. But presently, employees are appointed even at the age of 37 and so their service period is just 23 years. Such problems have to be carefully considered well in advance and solved before the 7th pay commission is implemented. 

Let us believe that the 7th pay commission will be the first arrears-free pay commission and implemented on time as per the guidelines of the 13th finance commission.

Will the 7th CPC fulfil the demands of LDCs and UDCs?

Will the 7th CPC fulfil the demands of LDCs and UDCs?
For a number of years now, especially after the 6th CPC, the problems faced by LDCs and UDCs have started gaining prominence. The unity and sense of purpose among them makes them look all set for the kind of victory that Pharmacists had. Common sense of purpose, unity and dedication sure make success possible!
In order to decrease the number of grades, the 6th Pay Commission combined all the different grades between Grade Pay 1300 to Grade Pay 1800 into a single grade – Grade Pay 1800, thereby wiping out the entire Group ‘D’. As a result, everybody became Group ‘C’ employees. Even those who lacked the minimum education levels, illiterates and everybody else were lumped into Group ‘C’. Their Grade Pay was also raised to Rs. 1800. But, at the same time, employees working as LDCs, who have a minimum educational qualification of Class XII and also possess some technical education, were not given any upgrading. Instead, they now had to share their grade with lesser-qualified former Grade ‘D’ employees.

The next huge trouble originated from the MACP. Those who didn’t get any promotion for years are given career upgradations through MACP. LDCs who didn’t get any promotions for more than 10 years were given their next grade pay, from Rs. 1900, their pay rose to Rs. 2000. The increase of mere Rs. 100 turned out to be a huge disappointment to many. Similarly, those with Grade Pay 2400 were hoping for a jump to Grade Pay 4200, but were instead forced to upgrade with only Grade Pay 2800 as per MACP rules. That anger kept seething too, because the different is 1400.
The most important demand of the LDCs and UDCs is to upgrade the current Pay Scale-Grade Pay.
Grades are decided based on the educational qualification of the employees. An LDC possesses a minimum educational qualification of Class XII and also has some technical qualifications. The basic salary of an LDC is just Rs. 1900 + 5830 = Rs. 7730.00. They want it revised to Rs. 2400 + 7510 = Rs. 9910.
The big question is – will the 7th CPC grant this demand?

Why is Annual Increment denied to employees retiring in June?

Why is Annual Increment denied to employees retiring in June?

Until 01.01.2006, the date of implementing employee’s annual increment was fixed on the basis of his/her date of appointment or promotion option. After the 6th CPC, it was decided that 1st July of each year would be the uniform date of implementation of annual increment for all Central Government employees.

Employees who are appointed after January 1st are not eligible for that year’s annual increment on July 1. They qualify for annual increment only the next year.

The revised pay rules said that “If an employee is on leave or is availing joining time on the 1st of July, the benefit of annual increment in pay will be drawn only from the date on which he resumes duty and not from the first of July. Each year, employees who retire in the month of June are not given the annual increment of the year since they do not report to work on 1st July. Only those employees who resume duty on July 1st are eligible to receive the annual increment. Or, the day they report back to work is taken as the date for implementing the annual increment. Since there are no possibilities for the retired employees to return to work, they are not considered as qualified to receive the annual increment.

The revised pay rules states that only those who have been receiving the same basic pay continuously for 6 months are considered as qualified for annual increment. According to the another rule of qualification for increment, the person should have complete one year in service after receiving the annual increment. Therefore, despite being qualified, these employees are denied their annual increment.

There is an order that states that those who retire on July 1st should complete the retirement formalities in the month of June.

Instead of strictly looking into such technicalities, it would be a nice gesture on the part of the Government to extend the benefits of annual increment to those senior employees too who retire from service in the month of June.


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