7th Pay Commission Report and the Need for Timeliness

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.

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 installments. 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.

Source: www.7thpaycommissionnews.com

25% Hike in Allowances – Confederation writes to Dopt to issue necessary orders

1. Children Education Assistance & Reimbursement of Tuition Fee

2. Advances for purchase of Bicycle Advance, Warm clothing Advance, Festival Advance, Natural Calamity Advance

3. Special Compensatory Hill Area Allowance

4. Special Compensatory Scheduled / Tribal Area Allowance

5. Project Allowance

6. Speical Compensatory (Remote Locality) Allowance

7. Cycle Maintenance Allowance

8. Mileage for road journey all components of daily allowance on tour

9. Rates of Fixed Conveyance Allowance under SR-25 (Motor Car)

10. Rates of Fixed Conveyance Allowance under SR-25 (Other modes)

11. Washing Allowance

12. Split Duty Allowance

13. Spl. Allowance for Child Care for Women with Disabilities and Education Allowance for disabled children

14. Cash Handling Allowance

15. Risk Allowance

16. Postgraduate Allowance

17. Desk Allowance

18. Bad Climate Allowance

Member, JCM National Council

EXPECTED DA FROM JULY 2014 – An overview of articles about DEARNESS ALLOWANCE

EXPECTED DEARNESS ALLOWANCE FROM JULY 2014

An overview of articles about DEARNESS ALLOWANCE

It is an appreciable trend that articles about Dearness Allowances continue to be churned each day. There are plenty of advantages and benefits in giving your own interpretation on a topic that millions are interested in. It helps a great deal in creating consensus opinion. Social media are especially useful in accomplishing this.

A very famous example is the unity and camaraderie between pharmacists a few years ago, and their success. The contribution of social media in the current protests being conducted by LDCs and UDCs is worth taking note of.

There is no denial to the fact that revolutionary new opinions expressed on social media have been useful for many in many different ways. There is also no doubt in the fact that members of the unions, associations, and federations continue to watch the social media. You can bet that in the near future almost all these leaders of unions and associations would have created their own individual websites and started expressing their opinions almost immediately.

Let us get to the topic at hand…
The Consumer Price Index for Industrial Workers points for last month was released on 31.03.2014. The index has risen by one point and stands at 238. As a result, the Dearness Allowance, which stood at 101.71 has now slightly increased to 102.79.

With the AICPIN data of only two months available, it has become clear that there is not even an increase of 3%. If the trend continues, the hike in DA would be very small this time. Though nothing can be speculated as of now, if the AICPIN doesn’t reduce, then there are chances of a 5% DA increase. If AICPIN points slump by bigger margins, there are chances that the DA percentage would decrease further.

To sum it up, this time, there is no possibility of getting the kind of DA hikes that were given in the past. But then, since we still don’t have the data for four months, it is difficult to accurately calculate.

‘Expected DA from July 2014’ completed its second step..!

Source: http://90paisa.blogspot.in
[http://90paisa.blogspot.in/2014/04/expected-da-from-july-2014-overview-of.html]

Did you know how the 6th CPC Multiplication Factor of 1.86 was derived?

Did you know how the 6th CPC Multiplication Factor of 1.86 was derived?

The 6th Pay Commission had recommended a Multiplication Factor of 1.74, but the Central Government chose to change it to 1.86. One of the reasons for this modification was the intense pressure from various Federations of Central Government Employees. It has to be mentioned at this point that all the federations had presented demands to the Government to raise the minimum basic pay to Rs. 10,000.

Exactly how did the Government arrive at 1.86? Here is an explanation how -

Let us assume the Basic Pay, as of 01.01.2006, as 100%. Let’s take the Dearness pay (post the 50% DA Merger) as 50%. Let us also take into account the 24% Dearness Allowance that was given before 01.01.2006.

If you add Basic Pay and Dearness Pay and calculate 24% of it, then you’d get 36%. (100 + 50 = 150 / 24 x 100 = 36)

100% + 50% + 36% = 186%

This number is being taken for calculations as 1.86.

At the time of 6th CPC Pay Fixation, the last drawn Basic Pay under 5th CPC was multiplied by 1.86 and rounded off. It was also explained that a new entity named Grade Pay was created and a sum total of this was the new Basic Pay.

Hence, it was impossible to consider 1.86 as the true yardstick. For example, for a basic pay of Rs. 3050…

3050 x 1.86 = 5680 (After rounded off)
Corresponding Grade Pay for 3050 is 1900,
Band Pay 5680 + Grade Pay 1900 = Basic Pay 7580
5th CPC basic pay = 3050
6th CPC basic pay = 7580

The multiplication factor number comes to 2.48.

It is not possible to take 2.48 as common for all basic pays. But, 2.48 was considered very low. That’s why we have used a bigger number to calculate in the 7th CPC’s Expected Pay Scale.

Source:  http://90paisa.blogspot.in
[http://90paisa.blogspot.in/2014/04/did-you-know-how-6th-cpc-multiplication.html]

Estimated 7th Pay Commission pay scales as on 01.01.2016

Estimation of 7th Pay Commission Grade Pay Structure