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.

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 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

Be the first to comment - What do you think?  Posted by admin - April 16, 2014 at 9:20 am

Categories: 7CPC, Employees News, Latest News   Tags: , , , , , ,

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

25% Hike in Allowances – Confederation writes to Dopt to issue necessary orders
Confederation Secretary General writes to the Secretary of Department of Personnel & Training to issue appropriate orders on hike in certain allowances by 25% as a result of Dearness allowance to 100% with effect from 1.1.2014.
Confederation’s Letter demanding Increase in certain allowances by 25% as a result of enhancement of Dearness Allowance to 100% w.e.f. 01.01.2014
CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor, North Avenue PO Building, New Delhi – 110001 
Website: www.confederationhq.blogspot.com 
Email: confederationhq@gmail.com 
Patron
S. K. Vyas 
09868244035
President
K. K. N. Kutty 
09811048303
Secretary General
M. Krishnan
09447068125
Ref: Confd/GENL/2014
Dated-14.04.2014
To
The Secretary,
Department of Personnel & Training,
Government of India,
North Block, New Delhi – 110001
Sir,
Sub: – Increase in certain allowances by 25% as a result of enhancement of Dearness Allowance to 100% w.e.f. 01.01.2014 – reg.
Vide MOF OM No. 1/1/2014-EBII (B) dated 27th 100% w.e.f. 01.01.2014. As recommended by the 6th following allowance and advances require enhancement of 25% from its present state as done when the DA crossed 50% in 01.01.2011.
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
Therefore it is requested to cause orders for the enhancement of 25% of the above allowances/advances w.e.f 01.01.2014 at the earliest.
A line in reply is much appreciated.
Yours faithfully, 

(M. Krishnan) 
Secretary General, Confederation 

Member, JCM National Council

Be the first to comment - What do you think?  Posted by admin - April 15, 2014 at 5:26 pm

Categories: Allowance, Dearness Allowance, Employees News, Latest News   Tags: , , , , , , ,

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]

1 comment - What do you think?  Posted by admin - at 11:38 am

Categories: Dearness Allowance, Employees News, Expected DA, Latest News   Tags: , , , , ,

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]

Be the first to comment - What do you think?  Posted by admin - at 11:33 am

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Estimated 7th Pay Commission pay scales as on 01.01.2016

Estimated 7th Pay Commission pay scales as on 01.01.2016- view of gconnect
Even as the 7th Pay Commission was constituted recently by Government for revision of Pay and allowances of Central Government Employees, Railway Employees and Defence Personnels, wide spread speculations on projected 7th Pay Commission pay scales are already going on. Blogs that provide Central Government Employees news and information have already started estimating possible 7th CPC pay scales based on different ideas.
GConnect.in was the first site that launched 6th Pay Commission Pay, Pension and arrears Calculator which received atmost popularity among Central Government Employees and CG Pensioners.
In respect of revised Pay and allowances of 7th Pay Commission also GConnect would come up with similar pay and pension calculators.

 

As a precursor, we thought of estimating 7th Pay Commission pay bands and grade pays based on the same methods adopted by Govt for determining 6th CPC revised pay Scales from the pre-revised (5th CPC) pay scales
Before estimation of 7th CPC Pay Scales let us have a look at the 6th CPC Pay Bands and Grade Pay Structure

6th CPC revised Pay Band, Grade Pay, Starting Pay in PB and Entry Pay

Pre RevisedPay Scale
PB
6 CPCPay Band
GradePay
StartingPay
Entry PayNew Recruits
S-1, S-2
PB-1
5200-20200
1800
5200
7000
S-3
PB-1
5200-20200
1800
5360
S4
PB-1
5200-20200
1800
5530
S-5
PB-1
5200-20200
1900
5880
7730
S-6
PB-1
5200-20200
2000
6060
8460
S-7
PB-1
5200-20200
2400
7440
9910
S-8
PB-1
5200-20200
2800
8370
11360
S-9
PB-2
9300-34800
4200
9300
13500
S-10
PB-2
9300-34800
4200
10230
S-11
PB-2
9300-34800
4200
12090
S-12
PB-2
9300-34800
4200
12090
S-13
PB-2
9300-34800
4600
13860
17140
S-14
PB-2
9300-34800
4800
13950
18150
S-15
PB-2
9300-34800
5400
14880
New
PB-3
15600-39100
5400
15600
21000
S-16
PB-3
15600-39100
5400
16740
S-17
PB-3
15600-39100
5400
16740
S-18
PB-3
15600-39100
6600
19210
25350
S-19
PB-3
15600-39100
6600
18600
S-20
PB-3
15600-39100
6600
19810
S-21
PB-3
15600-39100
7600
22320
29500
S-22
PB-3
15600-39100
7600
23720
S-23
PB-3
15600-39100
7600
22320
S-24
PB-4
37400-67000
8700
37400
46100
S-25
PB-4
37400-67000
8700
39690
S-26
PB-4
37400-67000
8900
39690
49100
S-27
PB-4
37400-67000
8900
39690
S-28
PB-4
37400-67000
10000
37400
53000
S-29
PB-4
37400-67000
10000
44700
S-30
PB-4
37400-67000
12000
51850
59100
S-31
HAG
75500-80000
75500
S-32
HAG
75500-80000
75500
S-33
Apex
80000 (fixed)
S-34
Apex
90000 (fixed)
Multiplication Factor of 1.86 adopted to for revision of Pay on implementation of 6th CPC :
While implementing 6th Pay Commission Government decided to adopt a multiplication factor of 1.86 for most of the pre-revised pay Scales to determine the revised pay in band of an employee
The 6th CPC revised pay in pay band of an employee was determined by multiplying the pre-revised basic pay drawn as on 01.01.2006 with 1.86 ( Of course, some of the pre-revised pay scales at higher level was revised by multiplying a factor more than 1.86).

This multiplying factor 1.86 was arrived at by taking in to account following components of pre-revised pay received by an employee prior to 01.01.2006.

Component
Multifplication Factor
Component A – Pre-revised Basic Pay
1
Component B – Dearness Pay (50% of pre-revised Basic Pay)
0.50
Component C – 24% Dearness Allowance on pre-revised basic pay and D.P prior to 01.01.2006
0.36 (24% on factors 1+0.5 taken for B.P and D.P)
Total Multiplication Factor
1.86
Estimation of Multiplication Factor to determine 7th Pay Commission revised Pay Scales and initial pay in pay band for each pay band :
By Adopting the same method followed by the Government to decide 6th CPC multiplication factor, the following Multiplication Factor has been arrived at for determing 7th Pay Commission revised Pay Scales and initial pay in pay band for each pay band as on 01.01.2016
Component
Multiplication Factor
Component A and B – Pay in pay band and Grade Pay as on 01.01.2016
1
Component C – 124 % Dearness Allowance on Pay in pay band and Grade Pay (** See the Note Below)
1.24
Total Multiplication Factor
2.24
** Note : DA as on 1st January 2014 is 100%. So DA as on 1st January 2016 has been conservatively estimated to be 124 % (6% increase for each 6 months period)
Estimation of 7th Pay Commission Grade Pay Structure
As we all know, there was no uniform correlation between Grade Pay and Pay in Pay band in the 6th CPC Pay Band Structure. So the ratio between the present grade pay and starting pay in the pay band of particular grade pay group was taken as the factor to estimate the 7th CPC grade pay.
For example Ratio of 6th CPC Grade pay of Rs. 8700 to starting pay (Rs.37400) in that grade pay group is 0.2327. This factor is multiplied with 7th CPC starting pay (Rs.83780) to get the equivalent 7th CPC grade pay of Rs.19500. Wherever this factor exceeded 0.35, the same was fixed as 0.35.
7th Pay Commission projected Pay Scale – Revised Pay Bands, Grade Pay, Starting Pay in PB and Entry Pay
Pre Revised
Pay Scale
PB
6 CPC
Pay bands
Grade
Pay
7th CPC
Pay Band
7th CPC
Grade Pay
@ Starting
Pay
@@
Entry Pay
S-1, S-2,
1
5200-20200
1800
11650-45250
4100
11650
15680
S-3
1
5200-20200
1800
11650-45250
4100
12010
S4
1
5200-20200
1800
11650-45250
4100
12390
S-5
1
5200-20200
1900
11650-45250
4300
13180
17320
S-6
1
5200-20200
2000
11650-45250
4500
13580
18960
S-7
1
5200-20200
2400
11650-45250
5900
16670
22200
S-8
1
5200-20200
2800
11650-45250
6100
18750
25500
S-9
2
9300-34800
4200
20840-77960
7300
20840
30240
S-10
2
9300-34800
4200
20840-77960
7300
22920
S-11
2
9300-34800
4200
20840-77960
7300
27090
S-12
2
9300-34800
4200
20840-77960
7300
27090
30240
S-13
2
9300-34800
4600
20840-77960
10400
31050
38400
S-14
2
9300-34800
4800
20840-77960
10400
31250
40700
S-15
2
9300-34800
5400
20840-77960
10800
33340
New
3
15600-39100
5400
34950-87590
10800
34950
47040
S-16
3
15600-39100
5400
34950-87590
10800
37500
S-17
3
15600-39100
5400
34950-87590
10800
37500
S-18
3
15600-39100
6600
34950-87590
14800
43040
56800
S-19
3
15600-39100
6600
34950-87590
14800
41670
S-20
3
15600-39100
6600
34950-87590
14800
44380
S-21
3
15600-39100
7600
34950-87590
17100
50000
66080
S-22
3
15600-39100
7600
34950-87590
17100
53140
S-23
3
15600-39100
7600
34950-87590
17500
50000
S-24
4
37400-67000
8700
83780-150080
19500
83780
103270
S-25
4
37400-67000
8700
83780-150080
19500
88910
S-26
4
37400-67000
8900
83780-150080
20000
88910
109990
S-27
4
37400-67000
8900
83780-150080
20000
88910
S-28
4
37400-67000
10000
83780-150080
22500
83780
118720
S-29
4
37400-67000
10000
83780-150080
22500
100130
S-30
4
37400-67000
12000
83780-150080
26900
116150
132390
@ Starting Pay is the 7th CPC starting pay in a pay band against a pre-revised Scale
@@ Entry Pay is the pay in pay band applicable to New Recruits.
The above table provides an idea on estimated 7th CPC Pay Band, Grade Pay and starting pay for each grade pay group. We have planned to launch an online tool to estimate 7th CPC pay in pay band and grade for a given 6th CPC pay in pay Band and grade pay. It will be released soon. Keep watching this site for this online tool.
Disclaimer: The above 7th CPC projected Pay bands, grade pay and starting pay are merely an estimation. The Actual 7th Pay Commission Pay Band, Grade Pay etc will be known only after implements the 7th Pay Commission’s recommendations. The pay structure given above may totally change based on various factors taken in to account by 7th Pay Commission to review the pay and allowances of Central Government Employees, Railway Employees and Defence personnels.
The following Government Orders relating to implementation of 6th Pay commission report have been referred to for the estimation of above mentioned 7th pay commission projected pay bands
Source-http://www.gconnect.in/orders-in-brief/7thcpc/estimated-7th-pay-commission-pay-scales-01-01-2016.html

Be the first to comment - What do you think?  Posted by admin - at 3:08 am

Categories: 7CPC, Employees News, Latest News   Tags: , , , , , ,

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