Thursday, 30 June 2016

Expected DA From July, 2016: AICPIN for the Month of May, 2016

Expected DA from July, 2016: AICPIN for the Month of May, 2016 released


No. 5/1/2016- CPI 
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

`CLEREMONT', SHIMLA-171004

DATED: 30th June, 2016
Press Release

Consumer Price Index for Industrial Workers (CPI-IW) — May, 2016

The All-India CPI-IW for May, 2016 increased by 4 points and pegged at 275 (two hundred and seventy five). On 1-month percentage change, it increased by (+) 1.48 per cent between April, 2016 and May, 2016 when compared with the increase of (+) 0.78 per cent between the same two months a year ago.


The maximum upward pressure to the change in current index came from Food group contributing (+) 3.69 percentage points to the total change. At item level, Rice, Wheat, Arhar Dal, Gram Dal, Masur Dal, Urd Dal, Groundnut Oil, Eggs (I len), Fish Fresh, Milk, Chillies Green, Brinjal, Cabbage, French Bean, Potato, Tomato, Sugar, Petrol, etc. are responsible for the increase in index.


The year-on-year inflation measured by monthly CPI-IW stood at 6.59 per cent for May, 2016 as compared to 5.86 per cent for the previous month and 5.74 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 8.48 per cent against 7.55 per cent of the previous month and 5.99 per cent during the corresponding month of the previous year.


At centre level, Salem reported the maximum increase of 12 points followed by Puducherry and Mysore (11 points each), Bengluru (10 points), Quilon, Warrangal and Coonoor (9 points each). Among others, 8 points increase was observed in 3 centres, 7 points in 5 centres, 6 points in 5 centres, 5 points in 9 centres, 4 points in 6 centres, 3 points in 9 centres, 2 points in 6 centres and I point in 17 centres. On the contrary, Amritsar recorded a decrease of 1 point. Rest of the 10 centres' indices remained stationary.


The indices of 31 centres are above All-India Index and other 42 centres' indices are below national average. The indices of Pune, Salem, Vishakhapatnam, Bokaro and Varanasi centres remained at par with All-India Index.


The next issue of CPI-IW for the month of June, 2016 will be released on Friday, 29th July, 2016. The same will also be available on the office website www.labourbureaunew.gov.in.


Sd/-
(SHYAM SINGH NEGI)
DEPUTY DIRECTOR GENERAL
Source:- AICPIN May, 2016

7th CPC Cabinet Decision – Frequently Asked Question

7th CPC Cabinet Decision – Frequently Asked Question

7thCPC-FAQ


1.  What is the Fitment Factor used in Pay Matrix?
A fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.

2. Did Cabinet approve for the employees request of changing minimum wages?
No, the 7th CPC recommendation will be implemented (Rs.18000/-)

3. What would be the current House Building Advance?
The ceiling of House Building Advance from Rs.7.50 lakh to 25 lakh,

4. When will I get my arrears?
All arrears including pensioner will be paid during this financial year (2016-17) itself.

5. What would be Rate of increment?
Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

6. What’s the status of NPS Implementation?
Cabinet decided to form two separate committee for looking into the issues.

7. What would be my current Central Government Employees Group Insurance Scheme (CGEGIS)?
It will stay at the existing rate of Rs.30, Rs.60 & Rs.120/- for Group C, B & A respectively.

8. Has the old allowance has been abolished?
Currently No (June’2016). Existing will continue and after 4 month’s there may be changes.

9. What would be the HRA Percentage after Cabinet Decision?
HRA would be at the rate of 30, 20 & 10 percentage and after 4 month’s there may be changes.

10. Has there been any changes in Defence Pay Matrix?
Yes, there has been changes in 13A (Brigadier), Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier).

11. Will there be any changes in Military Service Pay?
Yes, Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.

12. For pension, what would be multiplication factor?
2.57 would be the factor to determine the pension and will be reviewed after 4 months.

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7th Pay Commission calculator to highlights, here’s all you want to know

7th Pay Commission calculator to highlights, here’s all you want to know

The 7th Pay Commission report recommendations have been cleared today by the Cabinet. Earlier in its report, in November last year, the commission itself had recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years.

Here are the 7th Pay Commission report highlights:

1. Recommended Date of implementation: 01.01.2016

2. Minimum Pay – Calculator: Based on the Aykroyd formula, the minimum pay in government is recommended to be set at Rs 18,000 per month.

3. 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.

4. Financial Implications:
a) 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.

b) 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.

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

d) 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 percent in case of VI CPC.
5. New Pay Structure: 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.

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

7. Annual Increment: The rate of annual increment is being retained at 3 percent.

8. Modified Assured Career Progression (MACP):
a. Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”.
b. 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.
c. No other changes in MACP recommended.
9. 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:

7th Pay Commission Report

Present
Proposed
i.Service OfficersRs 6,000Rs 15,500
ii.Nursing OfficersRs 4,200Rs 10,800
iii.JCO/ORsRs 2,000Rs 5,200
iv.Non Combatants (Enrolled) in the Air ForceRs 1,000Rs 3,600

10. 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.

11. 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.

12. Headquarters/Field Parity: Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.

13. Cadre Review: Systemic change in the process of Cadre Review for Group A officers recommended.
14. Allowances: The 7th Pay 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.
a. 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:

7th Pay Commission Table

Present
Proposed
i.Service OfficersRs 21,000Rs 31,500
iii.JCO/ORsRs 14,000Rs 21,000
This would be the ceiling for risk/hardship allowances and there would be no individual RHA with an amount higher than this allowance.
b. 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 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.
c. 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.
d. Any allowance not mentioned in the report shall cease to exist.
e. Emphasis has been placed on simplifying the process of claiming allowances.
15. 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 lakhs from the present Rs 7.5 lakhs.
16. 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:

7th Pay Commission Table

Present
Proposed
i.Service OfficersRs 21,000Rs 31,500
iii.JCO/ORsRs 14,000Rs 21,000

17. Medical Facilities:
a. Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended.

b. 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.

c. All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.
18. 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.
The financial impact of the recommendations of this Commission will be reflected through increases in expenditure on Pay, Allowances and on Pension. The likely quantum of increase on account of each of these is summarised below:
7th-pay-commission-table

The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, an increase of nearly 23.55 percent over the Business As Usual scenario. Based on the current trend, the total expenditure on Pay (including DA, but excluding other allowances), during the year 2016-17, without factoring in the recommendations being made by this Commission, is expected to be Rs 2,44,300 crore. After implementation of the recommendations of the VII CPC, this is likely to rise to Rs 2,83,400 crore, reflecting an increase of Rs 39,100 crore (16.00%).

19. 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.

20. 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.

21. 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.

22. 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.

23. 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.

24. 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.

25. 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.

26. There are few recommendations of the Commission where there was no unanimity of view and these are as follows:
i. The Edge: An edge is presently accordeded to the Indian Administrative Service (IAS) and the Indian Foreign Service (IFS) at three promotion stages from Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and the NFSG. is recommended by the Chairman, to be extended to the Indian Police Service (IPS) and Indian Forest Service (IFoS).
Vivek Rae, Member is of the view that financial edge is justified only for the IAS and IFS. Dr. Rathin Roy, Member is of the view that the financial edge accorded to the IAS and IFS should be removed.

ii. Empanelment: The Chairman and Dr. Rathin Roy, Member, recommend that All India Service officers and Central Services Group A officers who have completed 17 years of service should be eligible for empanelment under the Central Staffing Scheme and there should not be “two year edge”, vis-à-vis the IAS. Shri Vivek Rae, Member, has not agreed with this view and has recommended review of the Central Staffing Scheme guidelines.

iii. Non Functional Upgradation for Organised Group ‘A’ Services: The Chairman is of the view that NFU availed by all the organised Group `A‟ Services should be allowed to continue and be extended to all officers in the CAPFs, Indian Coast Guard and the Defence forces. NFU should henceforth be based on the respective residency periods in the preceding substantive grade. Shri Vivek Rae, Member and Dr. Rathin Roy, Member, have favoured abolition of NFU at SAG and HAG level.

iv. Superannuation: Chairman and Dr. Rathin Roy, Member, recommend the age of superannuation for all CAPF personnel should be 60 years uniformly. Shri Vivek Rae, Member, has not agreed with this recommendation and has endorsed the stand of the Ministry of Home Affairs.

Exclusive: Government salaries hiked but allowances deferred, says 7th Pay Commission chief

Exclusive: Government salaries hiked but allowances deferred, says 7th Pay Commission chief

For now, the Government employees will have to be satisfied with the bonanza at the entry level salary hike from Rs 7000 to Rs 18,000 per month while on the allowance front, it’s a wait for at least for 4 months.

As the government employees cheer the pay hike after the seventh pay commission, they will be missing out on a big chunk of their allowance hike.

The Cabinet has decided to defer the recommended allowance hike in the government employees pay package and refer the matter to a committee headed by Finance Secretary Ashok Lavasa.
Speaking to India Today, Justice (retd.) AK Mathur who headed the seventh pay commission said that this move is set to have a substantial impact.

“Allowances contribute a lot in the pay hike recommendation. If the allowance is not taken into consideration it will mean fewer amounts (for employees) because the allowance which we proposed is very substantial. We had clubbed the allowances with the basic pay which is a reasonable one”, he said.

CONGRESS SLAMS GOVT

His seventh pay commission which was formed under the UPA government had recommended average 23.5 per cent hike including the housing rent, education and transport allowances. The Congress was quick to target the government for only implementing the basic salary hike proposal.

“Government has first only increased pay to 15 per cent, not the 23 per cent. If you compare with previous government decision, we increased the salary by 40 per cent. It is cheating large section of employees. Why allowances like Medical and Transport are removed from the hike”, said Congress. spokesperson, Randeep Surjewala.

But for the government, it’s important to first balance the budgetary provisions. Although, Rs 1.02 lakh crore provision was made in the general and the railways budget for seventh pay commission, government was at risk of crossing the limit and missing the fiscal deficit target.

By deferring the allowance hike proposed by the seventh pay commission, the burden to the exchequer is reduced by a 17 per cent at Rs 84,933 crore.

“The Government must be considering the liability on them as it may have increased more than 1.02 lakh crore to exchequer if allowances were factored in. We will have to see if the matter is referred to a committee of secretary which allowances is deferred, but they will make it a lot of difference”, added Justice Mathur.

So, for now, the Government employees will have to be satisfied with the bonanza at the entry level salary hike from Rs 7000 to Rs 18,000 per month and the maximum pay cap raised from Rs 90,000 to Rs 2.5 lakh per month. On the allowance front, it’s a wait for at least for 4 months till the time finance secretary panel mulls over the proposal.

“Until the decision will be taken on the allowances issue, the present allowances will continue”, said Union Finance Minister Arun Jaitley.

Percentage of HRA in 7th pay commission after cabinet approval

Percentage of HRA in 7th pay commission after cabinet approval

The Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalising the percentage based allowances. The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

The cabinet committee reviewed the recommendations on Allowances and they are not able to give a decision over the Allowances. Hence the Union Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. And it is said that the Committee will complete its work in a time bound manner and submit its reports within a period of 4 months.

In the press release issued by government said the following

” The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.”

Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively. Whether these existing rates of HRA will be paid based on revised pay or pre revised pay..? It needs to be clarified when implementation of 7th pay commission is in process.

7th CPC Recommendation on CGEGIS is not accepted by Government

7th CPC Recommendation on CGEGIS is not accepted by Government

7th CPC Recommendation on CGEGIS is not accepted by Govt and the old scheme and rates continues
The 7th Pay Commission has recommended the following rates for Central government Employees Group Insurance Scheme (CGEGIS) . The subscription amount has been increased considerably to increase the Insurance amount .

Level of Employee Monthly Deduction (Rs.) Insurance Amount (Rs.)
10 and above 5000 50,00,000
6 to 9 2500 25,00,000
1 to 5 1500 15,00,000

This has been objected by NCJCM in its memorandum. The demanded to reduce the monthly deduction as it is much higher than the Premium rates available for Term life Insurance in Open Market. The Central Government accepted this demand and rejected this recommendation and asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

The Press release issued by the Central Government says,


” The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.”

7th CPC – GOVERNMENT REJECTED ALL THE MODIFICATIONS SOUGHT BY THE NJCA

7th CPC – GOVERNMENT REJECTED ALL THE MODIFICATIONS SOUGHT BY THE NJCA

NO INCREASE IN MINIMUM PAY AND FITMENT FORMULA
HOLD PROTEST DEMONSTRATIONS & RALLY IN FRONT OF ALL OFFICES AND AT ALL IMPORTANT CENTRES

NJCA will meet at 04:00 PM on 30th June 2016 to decide future course of action. Continue in full swing mobilization for indefinite strike from 11th July 2016.
M. Krishnan
Secretary General
Confederation
Source: Confederation

No improvement in Minimum Wage and Multiplying Factor – AIRF

No improvement in Minimum Wage and Multiplying Factor – AIRF

We should go ahead with our preparations for “Indefinite Strike – Com. Shiva Gopal Mishra
It is quite unfortunate that, our demand for improvement in the report of the VII CPC has not been considered by the government.

Therefore, it would be quite appropriate that, we should go ahead with our preparations for “Indefinite Strike”, slated to be commended from 06:00 hrs. on 11th July, 2016…. Complete letter is uploaded below:-

A.I.R.F
All India Railwaymen Federations
4,STATE ENTRY ROAD, NEW DELHI-110055
No.AIRF/160
Dated: June 29, 2016
The General Secretaries,
All Affiliated Unions,

Dear Comrades!
Sub: Cabinet approval on the VII CPC report

As all of you are aware that the Union Cabinet has accepted the report of the VII CPC today.

It has been noticed that there is no improvement in Minimum Wage and Multiplying Factor as well, which was our hard pressed demand. Instead, wages, as recommended by the VII CPC have been accepted as it is, which is highly disappointing.

Only two committees have been formed, one to take care of the allowances and another for National Pension Scheme, which will submit their reports within four months time.

It is quite unfortunate that, our demand for improvement in the report of the VII CPC has not been considered by the government.

Therefore, it would be quite appropriate that, we should go ahead with our preparations for “Indefinite Strike”, slated to be commended from 06:00 hrs. on 11th July, 2016.

You are also advised to intensify the mass mobilization.
With fraternal greetings!
Yours faithfully
(Shiv Gopal Mishra)
General Secretary
Source: AIRF

Cabinet approved improvements in the Defence Pay Matrix in Some Levels

Cabinet approved improvements in the Defence Pay Matrix in Some Levels

The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :

  • Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
  • A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
  • Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
  • Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
  • Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

Central government employees to get OROP benefits: 7th Pay Commission chief

Central government employees to get OROP benefits: 7th Pay Commission chief
 
Justice-A-K-Mathur-Seventh-Pay-Commission-OROP

Jodhpur (Rajasthan): The 7th Pay Commission has recommended One Rank One Pension (OROP) for all Central government employees.

Briefing ANI about the recommendations, 7th Pay Commission chairman Justice (Retd) A K Mathur on Wednesday said it appears that the report has been accepted in toto.

He said the One Rank, One Pension is one of the peculiar recommendations made to the government which has not been given so far.

“Though the army employees used to get the One Rank One Pension, but the civilians will also get the same One Rank, One Pension. This is a very peculiar feature. No pay commission gave that,” he added.

Justice (Retd) Mathur said the recommendations of the 7th Pay Commission will involve an additional expenditure for the government in terms of 1, 02,100 crores.

“That will include the increase in the pay structure, allowances as well as the pension for the retired employees. The peculiar feature of this report is that we have done away with the grade pay and given an open metric system,” said Justice (Retd) Mathur.

“It will be a very transparent system. The people will know where they stand. We have given them the entire manner in which they can find out their place in the metrics and after that they can determine their pay,” he added.

Justice (Retd) Mathur further said there are various allowances including house rent, transport, children’s education.

“A person who enters in the government service can reasonably expect to get about 24,000 per month. We have also recommended that the government employees should be covered by health insurance for everybody,” he said.

“We have also made a recommendation that the educational allowance should also be increased. We have also made a recommendation for very good allowances and perks for the army personnel. We have also given all paramilitary forces almost identical benefits as are given to the defence personnel,” he added.

Finance Minister Arun Jaitley said the recommendations will be implemented from 1st January this year. He said, the Pay Commission covers 47 lakh central government employees and 53 lakh pensioners.

The Minister said the entry level salary for government employees will be 18000 rupees against the existing 7000 rupees per month.

Jaitley said based on minimum pay, fitment factor of 2.57 has been approved for revising pay of all employees uniformly across all levels.

The Minister informed that 7th Pay Commission recommendations on Allowances will be referred to a Committee headed by the Finance Secretary.
ANI

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