Friday, 20 May 2016

7th Pay Commission Report – Areas which require Revision / Modification by Empowered Committee

7th Pay Commission having been tabled already, now it is left to Empowered Committee (appointed for examining the report of the Commission) to consider the demands of Staff Side.

7thPayCommissionReport-revision

7th Pay Commission Report – Areas which require Revision / Modification by Empowered Committee as per Staff Side demands – Minimum Pay, Fitment Formula, Annual Rate of Increment, Date of Effect, Ratio between Minimum Pay and Maximum Pay, Fixation of Pay on Promotion etc.

After 7th Pay Commission formed in February 2014, staff side JCM consisting of members who are also office bearers of various staff organisations had submitted detailed memorandum to the Commission  and suggested the quantum of Minimum Pay, Fitment Formula, Annual Rate of Increment, Date of Effect, Ratio between Minimum Pay and Maximum Pay, Fixation of Pay on Promotion etc., for taking in consideration by 7th Pay Commission in its recommendations.

However, many of the demands of the staff side were not favourbly considered by the 7th Pay Commission in its recommendations.

Now, Staff Side have been impressing upon Empowered Committee, the need for rectification / modification / revision of many of retrograde recommendations of 7th Pay Commission

We provide here a brief of the areas with respect to which Staff Side members will have to demand for revision / modification of the recommendations of 7th Pay Commission.

1. Minimum 7th Pay Commission Pay and Ratio between Minimum and Maximum Pay:

7th Pay Commission has proposed a basic pay of Rs. 18000 as minimum entry pay in Central Government Service (Pay of MTS). However, Staff Side JCM is of the view that as per approved methods such as Dr.Aykroyd Formula, minimum pay in Central Government Service should be Rs. 26,000.


2. Date of Effect and Fitment Formula:

Staff Side JCM had put forth before 7th Pay Commission that uniform fitment formula / multiplication factor of 3.7 to be applied while fixing the basic pay of existing employees.

With regard to Date of effect of 7th Pay Commission pay and allowances, members representing staff side submitted before 7th CPC that Central Government Employees are due for pay revision every ten years and that in order to rectify the delay in implementation of pay commission award in the past, the present pay commission award has to be given effect from 1st January 2014.

Contrary to Staff Side JCM’s suggestions, 7th Pay Commission has fixed the fitment formula / multiplication factor as 2.57. While mere merger of DA with existing pay in pay band and Grade pay would require a multiplication factor of 2.25, 7CPC proposed fitment formula / multiplication factor of 2.57 would result in increase in basic pay to an extent of 14.22% only.

Hence, convincing 7th CPC empowered committee for a higher multiplication factor / fitment formula would be the foremost concern of Staff Side JCM.

As far as date of effect of 7th Pay Commission award is concerned, the commission has not accepted the suggestion of Staff Side. It has observed that since the previous pay commission was given effect from 1st January 2006, the present pay commission award will have to be made effect only from 1st January 2016.


3. Annual Rate of Increment and Date of Increment:

Staff JCM in its memorandum before 7th Pay Commission suggested that since most of the PSUs including the banking industries provide the incremental rate at 5% and over a period of time it raised the salary level of the personnel, rate of  annual increment for Central Government Employees will have to be fixed at 5%.

Further, uniform date of increment prescribed by the 6th CPC resulted in many anomalies, Staff Side JCM submitted that two specific dates as increment dates, Viz. 1st January and 1st July will have to be introduced.  Those recruited/appointed/promoted during the period between 1st January and 30th June will have their increment date on 1st January and those recruited/appointed/promoted between 1st  July and 31st  December will have it on 1st  July next year.

Also, staff side required that those who retire on 30th June or 31st December are granted one increment on the last day of their service, since they serve the entire one year of service required for an increment as on the date of retirement

Recommendation of 7th Pay Commission on the rate of increment:

In spite of valid argument of staff side for recommending annual increment rate of 5%, 7th Pay Commission has not made revision in annual increment and Promotional increment which have been recommended at the rate of 3% of basic pay.

4. Scrapping of NPS:

Staff Side JCM is of the view that New Pension system (NPS) has to be scrapped and all the employees who have joined in Govt Servic on or after 01.01.2004, are to be brought to defined pension scheme.

However, 7th Pay Commission observed that the NPS will have to be continued; that Govt should frame necessary law / Policy for proper investment of NPS fund in Equity and that a strong grievance redressel will have to be formed to serve NPS employees.

5. Transport Allowance:

With regard to Transport Allowance, Staff Side JCM presented the demand that if at all Transport allowance is meant to defray transport charges then low paid employees ought to have been paid higher transport allowance then higher level officers as they only travel from long distances to reach office. Hence, it was suggested by Staff Side that uniform transport allowance be paid irrespective of level of the cadre

Pay Range X class cities other places
Up to Rs.75,000 Rs. 7500 plus DA Rs. 3750 plus DA

 However, 7th Pay Commission has not modified the structure of Transport allowance on the basis of pay level. The existing DA on Transport Allowance has been proposed to be merged. The new rates of Transport Allowance suggested are as follows:

Pay Level
Higher TPTA Cities
(Rs. pm)
Other Places
(Rs. pm)
9 and above 7200+DA 3600+DA
3 to 8
3600+DA 1800+DA
1 and 2
1350+DA 900+DA


6. MACP:

It has been demanded by Staff Side JCM that five hierarchical promotions to be granted under MACP. Presently only 3 financial upgradations either in the form of promotion or time bound financial upgradation to next grade pay are being ensured under MACP.

7th Pay Commission has not made any proposal for revising the number of upgradations under MACP which is three at present.

With regard to the benchmark for performance appraisal for MACP as well as for regular promotion, 7th Pay Commission has recommended that in the interest of improving performance level, the same has to be enhanced from ‘Good’ to ‘Very Good.’

7th Pay Commission has also noted that introduction of more stringent  criteria such as  clearing of departmental examinations or mandatory training before grant of MACP can also be considered by the government.

Withholding Annual Increments of Non-performers:

7th Pay Commission has proposed that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.

The Commission has proposed for 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.

7. House Building Advance:

Staff Side JCM had demanded for increasing the advance to 50 times of the Salary and fixing the rate of interest not more than 5%.

As per 7th Pay Commission’s recommendations, 34 times of Basic Pay OR Rs.25 lakh OR anticipated price of house, whichever is least can be availed as House Building Advance.

The requirement of minimum 10 years of continuous service to avail of HBA has been proposed to be reduced to 5 years.

If both spouses are government servants, 7CPC has proposed that HBA should be admissible to both separately. Existing employees who have already taken Home Loans from banks and other financial institutions would be allowed to migrate to this scheme, as recommended by 7CPC.

8. Children Education Allowance:

Suggestions of Staff Side:

Presently the allowance is admissible for two children, for studying in a recognised school up to XII standard. The maximum ceiling  is stipulated at Rs.18000/- since this allowance had been hiked by 50% because of the DA component in salary having been crossed 100% on 1.1.2014. It is suggested that doubling of this allowance and increasing the same by 50 % whenever the DA crosses over by 50%

Further, it has been suggested that the CEA scheme may be extended to cover children studying for Graduate/Post Graduate and Professional courses.

7th Pay Commission’s recommendations on Children Education Allowance:


CEA (Rs. pm) 1500×1.5 = 2250 Whenever DA increases by 50%, CEA shall increase by 25%
Hostel Subsidy (Rs. pm) 4500 x 1.5 = 6750 (ceiling) Whenever DA increases by 50%, Hostel
Subsidy shall increase by 25%

7th Pay Commission has not accepted the Staff Side’s demand that CEA to be applicable for children beyond class 12.

9. HRA:

House Rent Allowance suggested by Staff Side JCM

X classified cities 60%
Y classified towns 40%
Z classified/unclassified  places  20%

House Rent Allowance recommended by 7th Pay Commission
Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 lakh and above
X
24
50–5 lakh
Y
16
Below 5 lakh
Z
8

HRA when DA crosses 50%
Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 lakh and above
X
27
50–5 lakh
Y
18
Below 5 lakh
Z
9

HRA when crosses 100%
Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 lakh and above
X
30
50–5 lakh
Y
20
Below 5 lakh
Z
10

10. LTC:

Staff Side JCM demanded the following as far as Leave Travel Concession applicable to Central Government Employees is concerned

1. Permission for air journey for all categories of employees to and from NE Region.

2. Permission for personnel posted in NE Region for a journey within NE Region.

3. To increase the periodicity of the LTC once in two years.

4. Explore the possibility of allowing an employer to undertake tour outside India once in a service career  in lieu of the LTC.

7th Pay Commission Report on LTC:

It could be found that suggestions of Staff Side JCM such as increasing the frequency of All India LTC, permission for air travel for all categories of employees in respect of NE Region etc., were not discussed in the report of 7th Pay Commission.

The proposal to split hometown LTC has been considered and it is recommended that splitting of hometown LTC should be allowed in case of employees posted in North East, Ladakh and Island territories of Andaman, Nicobar and Lakshadweep.

Also, it is obsered by 7th Pay Commission that LTC to foreign countries is not in the ambit of this Commission.


11. Gratuity:

Suggestions of Staff Side JCM:

Staff Side JCM suggested that in respect of gratuity payable to employees ceiling of 16.5 times and the quantum limit of Rs. 10 lakhs should also be removed. It was pointed out that in the banking industry there is no such ceiling of 16.5 months‟ salary but the retiring bank employees are getting at the rate of ½ a month salary for every year of service even over and above 33 years of service. Hence, in respect of Central Government Employees also for a service span exceeding 33 years, the gratuity should be higher and the above ceiling be withdrawn.

7th Pay Commission’s recommendations on Gratuity:

It has been recommended by 7th Pay Commission that ceiling of gratuity is to be raised from the existing Rs.10 lakh to Rs. 20 lakh from 01.01.2016. Further, as per Commission’s recommendations, Gratuity is to be partially indexed to Dearness Allowance. It is proposed that the ceiling on gratuity may increase by 25% whenever DA rises by 50 percent.

Via gconnect.in

Minister of Railways introduced Wi-Fi services at Three More Railway Stations i.e. Patna, Ranchi & Visakhapatnam

Minister of Railways introduced Wi-Fi services at Three More Railway Stations i.e. Patna, Ranchi & Visakhapatnam

The Minister of Railways, Shri Suresh Prabhakar Prabhu inaugurated the High Speed Wi-Fi services at Patna (Bihar), Ranchi (Jharkhand) & Visakhapatnam (Andhra Pradesh) Railway Stations through Video Conferencing from Rail Bhawan, New Delhi for the commuters at these Railway Stations. The Wi-Fi facility for the visitors & rail users at these stations has been commissioned by RailTel in association with Google for providing high speed state of the art world class internet experience to the commuters. Chairman, Railway Board Shri A.K. Mital, Member Engineering Shri V.K. Gupta, M.D. RailTel Shri R.K. Bahuguna, and other board Members were present at Rail Bhawan to grace the occasion. Various dignitaries were also presented at the respective abovementioned Railway Stations.

Speaking on the occasion, the Minister of Railways Shri Suresh Prabhakar Prabhu said that as the India is heading towards digitalization, Internet has become the basic need of every individual for which they are entitled to. He said that to bring the railway stations to world standard and to keep pace with the latest technology, provision of high speed WiFi is the first step in this direction. He said that so far this facility has been provided at 19 Railway Stations which will be extended to 100 Railway Station in the coming one year. He said that after completion of this project of providing WiFi facility at all 400 stations, it would be the biggest WiFi service in the world. He said that Indian Railways have been taking lot of measures to improve the facilities for the railway users and the coming time will also bring lot of new facilities which will make the railway passengers feel proud.

PIB

Union Home Minister announced ex-gratia amount of Rs.25 lakh

Union Home Minister announced ex-gratia amount of Rs.25 lakh

Union Home Minister Shri Rajnath Singh has expressed his deep sorrow and grief on the sad demise of Shri M.M. Khan, Deputy Law Officer of New Delhi Municipal Council (NDMC). Shri M.M. Khan was murdered on May 16, 2016.

In his message, Shri Rajnath Singh has said that Shri M.M. Khan was a dedicated and honest employee of NDMC. Delhi Police has apprehended all the seven accused in the murder of Shri M.M. Khan within 48 hours of the incident. Union Home Minister has conveyed his deepest condolence to the family of Shri M.M. Khan and has said that every possible support to the family of the deceased would be given.

Shri Rajnath Singh has announced an ex-gratia amount of Rs.25 lakh to the family of the deceased. On the directions of Home Minister, NDMC has offered a job to the wife of late Shri M.M. Khan on compassionate grounds. NDMC has also been directed to extend every possible support to the family of the deceased. The employees of NDMC have also shown their solidarity to the family of Shri M.M. Khan and have decided to contribute their one day salary to the family of Shri M.M. Khan.

Union Home Minister has said that Ministry of Home Affairs and NDMC stand united with the family of late Shri M.M. Khan in their moment of grief.

PIB

7th Pay Commission Latest News – 27% increase expected as against 14.29% recommended


7th Pay Commission Latest News – 27% increase expected as against 14.29% recommended by 7th CPC – Increase in Minimum pay expected now is Rs. 20,000 in the place of Rs. 18000 recommended by 7th Pay Commission
In addition to revision of minimum entry pay and multiplication factor, staff side has been demanding revision of annual increment from 3% to 5%, and reconsider 7th Pay Commission’s proposal to abolish various allowances 

Recent developments regarding implementation of 7th Pay Commission recommendations indicate that Govt may consider some of the demands of Staff Side, JCM such as minimum pay and multiplication factor etc., relating revision of Pay Central Government Employees.

7th Pay Commission has recommended that minimum Basic Pay of Central Government Employees which is Rs. 7000 presently to be increased to Rs. 18,000. This works out to 14.29 % increase when taking in to account the dearness allowance of 125% with effect from 1st January 2016.

As far as existing employees are concerned 7th CPC has recommended that their present basic pay has to be mulitiplied by 2.57, to arrive at new new basic pay as on 1st January 2016. This new basic pay is 14.22% more than the existing one.

Multiplication Factor as per 7th Pay Commission Report:


Multiplication Factor
Existing Basic Pay (Pay in pay band + Grade Pay 1
Existing Basic Pay with DA 2.25
7CPC recommended Basic Pay 2.57
(Net increase = 14.22%)


Since the implementation of 6th Pay Commission recommendations provided an increase of 30% to 40% in the pay of Employees, pay hike of 14.22% proposed by 7th Pay Commission was termed by Staff Side, JCM as very meagre and retrograde.

In this background, now it is disclosed by reliable sources that Empowered Committee formed by the Govt to process the 7CPC recommendations is considering the staff side’s demand to revise the minimum pay to Rs. 26,000. Minister of State for Finance has also promised to consider the demands of staff side for revising the minimum and multiplication factor, favourably.

It is learnt that Govt may persuade Staff Side to settle with the minimum pay of 20,000 and multiplication factor of 2.86. This is 27% more than present pay. As a result Net increase in Basic Pay will be 27%

In addition to revision of minimum entry pay and multiplication factor, staff side has been demanding for revision of annual increment from 3% to 5%.

7th Pay Commission on pay and pension: Pensioners to Gain the Most


Based on the 7th Pay Commission data, already pension payments account for a third of the government’s wage bill. That is going to rise sharply over the next 10 years.

7th Pay Commission – Pensioners to Gain the Most – While the 7th Pay Commission pay scale increase of serving employees is 16%, pensioners will see a 23.63% rise.

7th Pay Commission on pay and pension: Once the recommendations of the 7th Pay Commission are implemented, the biggest gainers will be pensioners. While the 7th Pay Commission pay scale increase of serving employees is 16%, pensioners will see a 23.63% rise. However, the big gain per se is in allowances, which rise by as much as 63%. Here is an elaboration of the 7th Pay Commission pension recommendations:

Going by the numbers, pension payments could well be the next time-bomb. Based on the 7th Pay Commission data, already pension payments account for a third of the government’s wage bill. That is going to rise sharply over the next 10 years. It is driven by the fact that 9.48 lakh employees accounting for 29% of the 30.32 lakh employees on the rolls now are in the 50-60-year band. By this time in 10 years, that means the government will need to pay for an additional million pensioners. So, the pension bill will continue to rise – with better health, most people live almost 20 years after retirement.


The Urban Development Ministry will see the sharpest fall (61.3%) followed by the Department of Posts (41.6%). However, the Indian Railways will account for half of the retirees (4.94 lakh). Despite the 37.5% fall in employees, the Indian Railways will still have 9.22 lakh employees if no new ones are hired.

This is also due to the fact that there has been no real move to reduce the government employee base over the years. While there are 33 lakh employees now it was 32.74 lakh in 2006 and 32.31 lakh in 2010. The only relief from the pension bomb will come when those employed after 2004 come to retirement age. These people are covered under the National Pension Scheme where the pensions they receive will depend on the payout they make while being employed. However, these employees will reach the retirement age a good 30 years from now. Check out 7th Pay Commission on pay and pension quick calculator below:

Dept. Employees (in lakh) In 50-60- yr group % share
Railways 13.16 4.94 37.54%
MHA 9.8 0.68 6.94%
Defence (civil) 3.98 1.51 37.94%
Posts 1.9 0.79 41.58%
Urban devp 0.31 0.19 61.29%
Atomic energy 0.32 0.11 34.38%
Health 0.21 0.07 33.33%
Accts & audit 0.48 0.16 33.33%
Revenue 0.96 0.33 34.38%
Others 1.86 0.7 37.63%
Total 32.98 9.48 28.74%

Source: The Financial Express

Appointment of the Additional Secretaries to the Government of India

Appointment of the Additional Secretaries to the Government of India

No. 36/02/2016-EO(SM.I)
Government of India
Secretariat of the
Appointments Committee of the Cabinet
Ministry of Personnel,Public Grievances and Pensions
Department of Personnel and Training 
New Delhi, the 19th May, 2016

The Appointments Committee of the Cabinet has approved the following appointments:


1.  Ms Shalini Prasad, IAS (UP:1985), presently in her Cadre as Additional Secretary, Ministry of Power vice Shri Badri Narain Sharma, IAS (RJ:1985) on his appointment as Additional Secretary, Department of Revenue, Ministry of Finance.

2.  Ms Madhulika P Sukul, IDAS (1982), presently in her Cadre as Additional Secretary, Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution vice Shri G. Gurucharan,IAS (KN:1982) on his appointment as Secretary (Performance Management), Cabinet Secretariat.

3.  Shri Rajani Ranjan Rashmi, IAS (MN:1983), Additional Secretary, Department of Commerce, Ministry of Commerce and Industry as Additional Secretary, Ministry of Environment, Forest and Climate Change vice Shri Hem Kumar Pande, IAS (WB:1982) on his appointment as Secretary, Department of Official Language, Ministry of Home Affairs.


4.  Shri Girish Chandra Murmu, IAS (GJ:1985), Additional Secretary, Department of Expenditure, Ministry  of Finance as Additional Secretary, Department of Financial Services, Ministry of Finance vice Ms Snehlata Shrivastava, IAS (MP:1982) on her appointment as Secretary, Department of Justice, Ministry of Law and Justice.


5.  Ms Amita Prasad, IAS (KN:1985), Joint Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation as Additional Secretary, Ministry of  Environment, Forest and Climate Change vice Shri Susheel Kumar, IAS (UP:1982) on his appointment as Secretary (Border Management), Ministry of Home Affairs.


6.  Shri Nikhilesh Jha, IAS (MN:1984), Additional Secretary, Ministry of  Water Resources, River Development and Ganga Rejuvenation as Additional Secretary and Financial Adviser, Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution vice Shri Prabhas Kumar Jha, IAS (UP: 1982) on his appointment as Secretary, Ministry of Parliamentary Affairs.


7.  Shri U P Singh, IAS (OR:1985), Additional Secretary, Ministry of Petroleum and Natural Gas as Additional Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation vice Shri Nikhilesh Jha, IAS (MN:1984) on his appointment as Additional Secretary and Financial Adviser, Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution.

(Rajiv Kumar)
Secretary
Appointments Committee of the Cabinet
&  Establishment Officer
DoPT Order

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