Posts Tagged ‘7th Pay Commission Report’

Implementation of 7th Pay Commission Report

Implementation of Seventh Pay Commission Report

The following steps have been taken to implement the recommendations of 7th Pay Commission Report in respect of Armed Forces personnel:

(i) Issue of Resolution dated 25th July 2016 by Ministry of Finance.

(ii) Issue of Resolution dated 5th September 2016 by Ministry of Defence.

(iii) Issue of orders dated 10th October, 2016 by Ministry of Defence for payment of ad-hoc arrears equal to 10% Basic Pay and Dearness Allowance.

The order for revision of pension to ex-servicemen pursuant to the recommendations of 7th Pay Commission Report was issued on 29th October, 2016. As per information available in respect of pre-2016 pensioners, 24 public sector banks have revised pension of 18,99,697 pensioners and have paid Rs.5883.27 crore (approx) on account of arrears of pension / family pension.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Arvind Sawant in Lok Sabha today.

PIB

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Be the first to comment - What do you think?  Posted by admin - March 10, 2017 at 3:33 pm

Categories: 7CPC   Tags: , , ,

DA from January 2017 will be 4% or 5% – Dearness Allowance Estimation

DA from January 2017 will be 4% or 5% – Dearness Allowance Estimation

DA from January 2017 will be 4% or 5% based on Consumer Price Index (Industrial Workers) from January 2016 to December 2016 – Net increase in DA with effect from January 2017 is estimated to be 2% or 3%

All India Consumer Price Index (Industrial Workers) for the month of November 2016 has been released by Ministry of Labour few days back.

What do we need for estimating DA from January 2017 ?

After implementation of 7th Pay Commission report, same inflation index i.e Consumer Price Index (Industrial Workers) with base year 2001=100, which was used for 6th Pay Commission Pay, is adopted for determining Dearness Allowance of Central Government Employees and Pensioners.

The only difference in DA calculation as far as DA from January 2016 will be, will be taking the Average of CPI-IW recorded in 2015 in the place of Average of CPI-IW recorded in 2005 which was used in 6th CPC DA calculation

Dearness Allowance payable after implementation of 7th Pay Commission = (Avg of CPI-IW for the past 12 months – Average of CPI-IW recorded in 2015)*100/(Average of CPI-IW recorded in 2015)

In order to determine DA with effect from January 2017, based on the above formula we need Consumer Price Index for the months from January 2016 to December 2016

Now that Consumer Price Index for the months from January 2016 to November 2016 is available, we have made an attempt to estimate Dearness Allowance applicable to Central Government Employees and Pensioners with effect from 1st January 2016, by assuming the possible CPI (IW) for the month of December 2016.

Month Actual AICPI-IW
Jan-2016 269
Feb-2016 267
Mar-2016 268
Apr-2016 271
May-2016 275
Jun-2016 277
Jul-2016 280
Aug-2016 278
Sep-2016 277
Oct-2016 278
Nov-2016 277
Dec-2016 Yet to be released

Estimation of DA from 1st January 2017:

Scenario 1 : No increase in AICPI (IW) in December 2016

AICPI (IW) for November 2016 is 277. If AICPI (IW) for December 2016 remains the same as November 2016, there will be additional 1% increase in DA from January 2017 which would make overall DA as 5%.

DA with effect from 1st January 2017 = [ (269+267+268+271+
275+277+280+278+
277+278+277+277)/12]-(261.4)
X100/261.4
= 5 %

Scenario 2: Decrease in AICPI (IW) in December 2016

Even if All India Consumer Price Index (Industrial Workers) decreases by 31 point and pegged at 246 in the month of December 2016, DA from January 2017 will be 4% . At the same time even for 1 point decrease in the index for December 2016 will result in lesser DA increase from January 2017 compared to Sceanrio 1 in which index is unaltered in Dec 2016.

DA with effect from 1st January 2017 = [ (269+267+268+271+
275+277+280+278+
277+278+277+246)/12]-(261.4)
X100/261.4
= 4 %
DA with effect from 1st January 2017 = [ (269+267+268+271+
275+277+280+278+
277+278+277+276)/12]-(261.4)
X100/261.4
= 4 %

Scenario 3 : Increase in AICPI (IW) in December 2016

It is very interesting to note here that, even for increase in consumer price index in the month of December up to 31 points, i.e Increase in AICPI (IW) for December 2016 to 308 points from 277 points in November 2016, DA from January 2017 will be 5% only.

DA with effect from 1st January 2017 = [ (269+267+268+271+
275+277+280+278+277+
278+277+308)/12]-(261.4)
X100/261.4
= 5 %

The other scenario that increase of more than 31 points in AICPI (IW) in the month of December 2016 for making DA with effect from January 2017 more than 5% is most unlikely.

Hence, it is more logical to conclude that DA from January 2017 will be either 4% or 5%.

Be the first to comment - What do you think?  Posted by admin - January 3, 2017 at 6:14 pm

Categories: Dearness Allowance, Expected DA   Tags: , , , , , , ,

Who are entitled to 7th Pay Commission additional Bunching increment ?

Who are entitled to 7th Pay Commission Bunching Benefit as per Para 5.1.36 of Pay Commission report ?  The meaning of Stage defined now in the OM dated 07.09.2016

In Para 5.1.36 of its report, 7th Pay Commission had recommended that one additional increment will be given while fixing of every two stages of pre-revised basic pay (pay in pay band and Grade pay) or scale  in the same pay in the new pay matrix.  This recommendation has been accepted by Govt and an OM has been issued on 7th September 2016 to this effect.

Check the following link to read OM dated 7th September 2016 on Bunching benefits

The Govt has also defined now the meaning of “Stage” in the OM dated 7th September 2016.  Pay drawn by two Government servants in a given Pay Band and Grade pay or scale where the higher pay is at least 3% more than the lower pay shall constitute two stages.

The illustration provided in 7th Pay Commission report for the purpose of granting Bunching Increment was relating to Entry Pay only in the the new Pay Matrix viz., As per Illustration provided in the report Employees in GP 10,000 who are fitted in to minimum of Level 14 of New Pay Matrix will be eligible for one additional increment and would be fitted in to next cell of Level 14.

However, as per the OM dated 7th September 2016, which has clearly defined the meaning of Stage as far as 6th CPC pay is concerned, the bunching benefit will also be applicable to fixation of 7th CPC pay for all the indices of new pay matrix in addition to entry pay.

7th Pay Commission Pay Fixation:

As per Para 5.1.28 of 7th Pay Commission Report, pay fixation in the new pay structure will have to be made as follows

Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’.

Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.

Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level

7th Pay Commission bunching Benefit:

In addition to above, 7th Pay Commission proposes bunching benefit in Para 5.1.36 whenever more than two stages are bunched together for fixation of pay in 7th CPC pay matrix, one additional increment equal to 3 percent may be given for every two stages bunched, and pay fixed in the subsequent cell in the pay matrix.

Further, Para 5.1.37 of the report provides an illustration for fixation of pay of two employees who are drawing pay of Rs.53,000 and Rs.54,590 in the GP 10000.

As per this illustration, after applying 7CPC multiplication factor of 2.57, both of these employees will have to be fixed in first cell of level 15 in the pay of Rs.1,44,200 as their revisesd pay are worked out to Rs.1,36,210 and Rs.1,40,296 respectively which are not more than the first cell of level 15 (Rs.1,44,200)

But to avoid bunching of these two stages of pay, the person drawing pay of Rs.54,590 will get fixed in second cell of level 15 in the pay of Rs.1,48,500, while the other who is drawing pay of Rs. 53,000 will have to be fixed in Rs.1,44,200.

Based on this illustration, a table containing Entry pay of Rs. 53,000 in GP 10000, subsequent stages for this pay (pay with increment of 3% for every year) and 7th Pay Commission pay fixation for the same has been prepared as below.

Applying same principles, we could find that next stage in entry pay in respect of Grade Pay 1800, 1900. 2000, PB-3-5400, 6600, 7600 and 8900 would be entitled to one additional increment as bunching benefit.

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of 10,000/- (Pay Band (Rs. 37400-67000)

6cpc Basic Pay 7CPC pay fixation GP 10000
bp*2.57 7CPC pay fixation with bunching benefit
53000 136210 144200 144200
54590 140296 144200 148500
56230 144511 148500 153000
57920 148854 153000 157600
59660 153326 157600 162300
61450 157927 162300 167200
63300 162681 167200 172200
65200 167564 172200 177400
67160 172601 177400 182700
69180 177793 182700 188200
71260 183138 188200 193800
73400 188638 193800 199600
75610 194318 199600 205600
77880 200152 205600 211800
80220 206165 211800 218200

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 8900/- (Pay Band 4 – Rs. 37400 to 67000)

GP 8900
6cpc Basic pay 6cpc*2.57 7cpc pay fixation 7CPC pay fixation with bunching benefit
49100 126187 131100 131100
50580 129991 131100 135000
52100 133897 135000 139100
53670 137932 139100 143300
55290 142095 143300 147600
56950 146362 147600 152000
58660 150756 152000 156600
60420 155279 156600 161300
62240 159957 161300 166100
64110 164763 166100 171100
66040 169723 171100 176200
68030 174837 176200 181500
70080 180106 181500 186900
72190 185528 186900 192500
74360 191105 192500 198300
76600 196862 198300 204200
78900 202773 204200 210300
81270 208864 210300 216600

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of of Rs 7600/- (Pay Band 3 – Rs. 15600 – 39100)

GP 7600
6cpc Basic pay 6cpc*2.57 7cpc pay fixation 7CPC pay fixation with bunching benefit
29500 75815 78800 78800
30390 78102 78800 81200
31310 80467 81200 83600
32250 82883 83600 86100
33220 85375 86100 88700
34220 87945 88700 91400
35250 90593 91400 94100
36310 93317 94100 96900
37400 96118 96900 99800
38530 99022 99800 102800
39690 102003 102800 105900
40890 105087 105900 109100
42120 108248 109100 112400
43390 111512 112400 115800
44700 114879 115800 119300
46050 118349 119300 122900
47440 121921 122900 126600
48870 125596 126600 130400
50340 129374 130400 134300
51860 133280 134300 138300
53420 137289 138300 142400
55030 141427 142400 146700
56690 145693 146700 151100
58400 150088 151100 155600
60160 154611 155600 160300
61970 159263 160300 165100
63830 164043 165100 170100
65750 168978 170100 175200
67730 174066 175200 180500
69770 179309 180500 185900
71870 184706 185900 191500
74030 190257 191500 197200
76260 195988 197200 203100
78550 201874 203100 209200

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 6600/- (Pay Band 3 – Rs. 15600 – 39100)

GP 6600
6cpc Basic pay 6cpc*2.57 7cpc pay fixation 7CPC pay fixation with bunching benefit
25350 65150 67700 67700
26120 67128 67700 69700
26910 69159 69700 71800
27720 71240 71800 74000
28560 73399 74000 76200
29420 75609 76200 78500
30310 77897 78500 80900
31220 80235 80900 83300
32160 82651 83300 85800
33130 85144 85800 88400
34130 87714 88400 91100
35160 90361 91100 93800
36220 93085 93800 96600
37310 95887 96600 99500
38430 98765 99500 102500
39590 101746 102500 105600
40780 104805 105600 108800
42010 107966 108800 112100
43280 111230 112100 115500
44580 114571 115500 119000
45920 118014 119000 122600
47300 121561 122600 126300
48720 125210 126300 130100
50190 128988 130100 134000
51700 132869 134000 138000
53260 136878 138000 142100
54860 140990 142100 146400
56510 145231 146400 150800
58210 149600 150800 155300
59960 154097 155300 160000
61760 158723 160000 164800
63620 163503 164800 169700
65530 168412 169700 174800
67500 173475 174800 180000
69530 178692 180000 185400
71620 184063 185400 191000
73770 189589 191000 196700
75990 195294 196700 202600
78270 201154 202600 208700

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 5400/- (Pay Band 3 – Rs. 15600 – 39100)

GP 5400
6cpc Basic pay 6cpc*2.57 7cpc pay fixation 7CPC pay fixation with bunching benefit
21000 53970 56100 56100
21630 55589 56100 57800
22280 57260 57800 59500
22950 58982 59500 61300
23640 60755 61300 63100
24350 62580 63100 65000
25090 64481 65000 67000
25850 66435 67000 69000
26630 68439 69000 71100
27430 70495 71100 73200
28260 72628 73200 75400
29110 74813 75400 77700
29990 77074 77700 80000
30890 79387 80000 82400
31820 81777 82400 84900
32780 84245 84900 87400
33770 86789 87400 90000
34790 89410 90000 92700
35840 92109 92700 95500
36920 94884 95500 98400
38030 97737 98400 101400
39180 100693 101400 104400
40360 103725 104400 107500
41580 106861 107500 110700
42830 110073 110700 114000
44120 113388 114000 117400
45450 116807 117400 120900
46820 120327 120900 124500
48230 123951 124500 128200
49680 127678 128200 132000
51180 131533 132000 136000
52720 135490 136000 140100
54310 139577 140100 144300
55940 143766 144300 148600
57620 148083 148600 153100
59350 152530 153100 157700
61140 157130 157700 162400
62980 161859 162400 167300
64870 166716 167300 172300
66820 171727 172300 177500

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 2400/- (Pay Band 1 – Rs. 5200 – 20200)

GP 2400
6cpc Basic pay 6cpc*2.57 7cpc pay fixation 7CPC pay fixation with bunching benefit
9910 25469 25500 25500
10210 26240 26300 26300
10520 27036 27100 27100
10840 27859 27900 27900
11170 28707 29600 29600
11510 29581 30500 30500
11860 30480 30500 31400
12220 31405 32300 32300
12590 32356 33300 33300
12970 33333 34300 34300
13360 34335 35300 35300
13770 35389 36400 36400
14190 36468 37500 37500
14620 37573 38600 38600
15060 38704 39800 39800
15520 39886 41000 41000
15990 41094 42200 42200
16470 42328 43500 43500
16970 43613 44800 44800
17480 44924 46100 46100
18010 46286 47500 47500
18560 47699 48900 48900
19120 49138 50400 50400
19700 50629 51900 51900
20300 52171 53500 53500
20910 53739 55100 55100
21540 55358 56800 56800
22190 57028 58500 58500
22860 58750 60300 60300
23550 60524 62100 62100
24260 62348 64000 64000
24990 64224 65900 65900
25740 66152 67900 67900
26520 68156 69900 69900
27320 70212 72000 72000
28140 72320 74200 74200
28990 74504 76400 76400
29860 76740 78700 78700
30760 79053 81100 81100

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 2000/- (Pay Band 1 – Rs. 5200 – 20200)

GP 2000
6cpc Basic pay 6cpc*2.57 7cpc pay fixation 7CPC pay fixation with bunching benefit
8460 21742 22400 22400
8720 22410 23100 23100
8990 23104 23800 23800
9260 23798 23800 24500
9540 24518 25200 25200
9830 25263 26000 26000
10130 26034 26800 26800
10440 26831 27600 27600
10760 27653 28400 28400
11090 28501 29300 29300
11430 29375 30200 30200
11780 30275 31100 31100
12140 31200 32000 32000
12510 32151 33000 33000
12890 33127 34000 34000
13280 34130 35000 35000
13680 35158 36100 36100
14100 36237 37200 37200
14530 37342 38300 38300
14970 38473 39400 39400
15420 39629 40600 40600
15890 40837 41800 41800
16370 42071 43100 43100
16870 43356 44400 44400
17380 44667 45700 45700
17910 46029 47100 47100
18450 47417 48500 48500
19010 48856 50000 50000
19590 50346 51500 51500
20180 51863 53000 53000
20790 53430 54600 54600
21420 55049 56200 56200
22070 56720 57900 57900
22740 58442 59600 59600
23430 60215 61400 61400
24140 62040 63200 63200
24870 63916 65100 65100
25620 65843 67100 67100
26390 67822 69100 69100

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 1900/-

GP 1900
6cpc Basic pay 6cpc*2.57 7cpc pay fixation 7CPC pay fixation with bunching benefit
7730 19866 19900 19900
7970 20483 20500 20500
8210 21100 21100 21100
8460 21742 21700 22400
8720 22410 22400 23100
8990 23104 23100 23800
9260 23798 23800 24500
9540 24518 25200 25200
9830 25263 26000 26000
10130 26034 26800 26800
10440 26831 27600 27600
10760 27653 28400 28400
11090 28501 29300 29300
11430 29375 30200 30200
11780 30275 31100 31100
12140 31200 32000 32000
12510 32151 33000 33000
12890 33127 34000 34000
13280 34130 35000 35000
13680 35158 36100 36100
14100 36237 37200 37200
14530 37342 38300 38300
14970 38473 39400 39400
15420 39629 40600 40600
15890 40837 41800 41800
16370 42071 43100 43100
16870 43356 44400 44400
17380 44667 45700 45700
17910 46029 47100 47100
18450 47417 48500 48500
19010 48856 50000 50000
19590 50346 51500 51500
20180 51863 53000 53000
20790 53430 54600 54600
21420 55049 56200 56200
22070 56720 57900 57900
22740 58442 59600 59600
23430 60215 61400 61400
24140 62040 63200 63200

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 1800/-

GP 1800
6cpc Basic pay 6cpc*2.57 7cpc pay fixation 7CPC pay fixation with bunching benefit
7000 17990 18000 18000
7210 18530 19100 19100
7430 19095 19100 19700
7660 19686 19700 20300
7890 20277 20300 20900
8130 20894 20900 21500
8380 21537 22100 22100
8640 22205 22800 22800
8900 22873 23500 23500
9170 23567 24200 24200
9450 24287 24900 24900
9740 25032 25600 25600
10040 25803 26400 26400
10350 26600 27200 27200
10670 27422 28000 28000
11000 28270 28800 28800
11330 29118 29700 29700
11670 29992 30600 30600
12030 30917 31500 31500
12400 31868 32400 32400
12780 32845 33400 33400
13170 33847 34400 34400
13570 34875 35400 35400
13980 35929 36500 36500
14400 37008 37600 37600
14840 38139 38700 38700
15290 39295 39900 39900
15750 40478 41100 41100
16230 41711 42300 42300
16720 42970 43600 43600
17230 44281 44900 44900
17750 45618 46200 46200
18290 47005 47600 47600
18840 48419 49000 49000
19410 49884 50500 50500
20000 51400 52000 52000
20600 52942 53600 53600
21220 54535 55200 55200
21860 56180 56900 56900

7th Pay Commission Report submitted – Download Report

Be the first to comment - What do you think?  Posted by admin - October 3, 2016 at 12:06 pm

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7th Pay Commission – Aggrieved CG Employees pin hope in meeting between Committee of Secretaries and NJAC on Sept 1

7th Pay Commission – Aggrieved CG Employees pin hope in meeting – The leading employee union, National Joint Council of Action, headed by Shiv Gopal Mishra, has been invited in the meeting

Committee of Secretaries will hold their second meeting regarding the resolution of anomalies in the implementation of 7th Pay Commission. The meeting is scheduled on September 1.

The leading employee union, National Joint Council of Action, headed by Shiv Gopal Mishra, has been invited in the meeting. Aggrieved central government employees pin their hope in the outcome of the meeting. However, many among them have turned increasingly pessimistic, after reports floated earlier in the week stating that the government would not be increasing the minimum salary which has been fixed as Rs 18,000.

Shiv Gopal Mishra is expected to pitch the demands of the government employees before the high-powered committee. As of now, it is not clear whether government would pitch for a compromise with the union. However, the committee members are scheduled to hear the grievances of the employees as raised by the Unions.

One of the foremost demands raised by NJAC is that the government should use 3.68 fitment factor, instead of 2.57 in calculating the minimum salary, as well as the hike in allowances. The minimum salary of government employees as per 6th Pay Commission was Rs 7,000. This was increased by the Justice AK Mathur led panel to Rs 18,000, using the 2.57 fitment factor. If the 3.68 fitment factor would be applied, the entry-level pay would be hiked to Rs 26,000.

The 7th Pay Commission report prepared by Justice (Retd) AK Mathur had suggested the abolition of 51 out of the 194 existing allowances. A total of 27 allowances were subsumed.

Apart from the civilian employees, the armed forces have also marked their objection as the pay panel has refrained from incorporating their demand related to the creation of a uniform pay matrix.

The Defence Pay Matrix has only 24 pay levels, on the other hand, their bureaucratic counterparts enjoy 40 pay levels. Due to this, the armed forces personnel receive less opportunity of salary hikes. Their income gets stagnated at certain points, and even after retirement, they end up drawing Rs 20,000 less as pension, as compared to their civilian counterpart. Similarly, the demand to include Tier-II employees among beneficiaries in the technical allowance has not been paid heed.

The all-important meeting scheduled by the government comes a day before the pan-India strike called by several employee unions across organized sectors against the recommendations of the 7th pay commission.

Source: India.com

Be the first to comment - What do you think?  Posted by admin - August 29, 2016 at 8:36 am

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7th Pay Commission report: New panel set up, controversy hit IAS cadre under scanner

7th Pay Commission report: New panel set up, controversy hit IAS cadre under scanner

 

The 7th Pay Commission report is still grabbing headlines as the various permutations and combinations are still being bandied about and discussed threadbare and now it spans a big controversy that has to do with the near monopoly currently enjoyed by the IAS and how to end it, once and for all. Moving forward, as per the requirement of the report, the Narendra Modi government has set up a task force to review the cadre structure of all Organised Group A Central Services. This controversy has acquired increased urgency after the turf war between the officers of the Indian administrative and revenue services (IAS and IRS) recently reached a flashpoint after several IRS officers huddled together in Mumbai last month bringing matters to a head and this set alarm bells ringing at the highest echelons of the government. (PTI)

 

The 7th Pay Commission task force will be headed by Department of Personnel and Training additional secretary T Jacob and he will submit the report in 3 months. What he will have on his hands will deal with 4 basic factors that include 1) the ideal structure for posts of joint secretary and above, 2) percentage of reserves in organised Group A services, 3) ideal recruitment policy and 4) way forward in mitigating stagnation level. There are 49 Organised Group A Services ranging from the IFS, the Indian Postal Service, the five Accounts services and Indian Revenue Service (IT) to the 13 engineering services under the railways, CPWD, telecom, power, water and defence forces. (PTI)

 

This move comes courtesy 7th Pay Commission panel chairman, Justice (retired) A K Mathur calling for an end to the dominance of IAS officials. However, there were divergent views in the panel on ending the IAS superiority. Under the scanner especially was the joint secretary-and-above-level positions in the central staff. The 7th Pay Commission threw up the data: out of a total of 91 secretary level posts, 73 (80%) were occupied by IAS; out of 107 additional secretary level posts, 98 (92%) were with the IAS and of 391 joint secretary level posts, 249 (64%) were with the IAS. (PTI)

 

The 7th Pay Commission said IAS officers get two extra increments at promotion stages and it wanted to extend the same to the IPS and the Indian Forest Service. Other all-India services and central services (Group A) are not getting proper representation either. The IAS officers always had a two-year edge compared to other services. (PTI)

 

The solution that the 7th Pay Commission panel unveiled said that all personnel who have put in 17 years of service should be given equal opportunity for central staff. The panel was overwhelmed by the reactions of Group A Services, who demanded that the services should have equal opportunities to man the senior-most posts and it should not be the preserve of a small group. (PTI)

 

Source : FinancialExpress

Be the first to comment - What do you think?  Posted by admin - August 26, 2016 at 8:25 am

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7th Pay Commission Arrears Soon. How To Claim Tax Relief

7th Pay Commission Arrears Soon. How To Claim Tax Relief

Highlights

  • Higher salaries and arrears received may increase tax slab
  • Tax Laws provide relief to employees due to delay in receipt of arrears
  • The tax relief can be claimed under Section 89(1)

In Seventh Pay Commission bonanza, lakhs of central government employees will soon receive higher salaries and arrears in one go. This may result in an increase in the tax slab of many employees as they will receive arrears from January 1, 2016.

Suppose an employee’s annual salary is Rs 9.50 lakh and receives Rs 1 lakh as arrears, of which Rs 50,000 is for the previous fiscal year. His/her tax slab will change. The total income for this year will be Rs 10.50 lakh as against Rs 10 lakh (including the arrears of this year). Income of individuals above Rs 10 lakh is taxed at the rate of 30 per cent while income between Rs 5 lakh and Rs 10 lakh is taxed at the rate of 20 per cent.

So will employees have to pay an extra tax? No.

There are provisions which provide tax relief to employees due to delay in the receipt of the arrears.

“If an employee or his family receives pension arrears or salary arrears, he or she can claim tax relief under Section 89(1). This Section makes sure you don’t end up paying higher tax due to moving up a tax slab from receipt of arrears. Or because tax slab rates in the year of receipt are higher as compared to the year to which arrears belong to,” says Preeti Khurana, chief editor of Cleartax portal.

How the tax relief is calculated

The tax break is arrived at by recalculating the tax for the both the years in which the arrears are received and the year to which arrears pertain to.

1) Calculate the tax payable on the total salary including and excluding the arrears in the year in which it is received. Calculate the difference between the two and assume it is ‘A’

2) Calculate the tax payable on the total salary including and excluding the arrears for every year for which the arrear relates to and sum it up. Calculate the difference between the two and assume it as ‘B’.

3) If ‘A’ is more than ‘B’, the employee will get tax break equivalent to ‘A’.

How it can be claimed

To avail the tax break, it is mandatory under the income tax laws to file Form 10E. The form includes details like the PAN, arrear and advance salary details. This form has to be uploaded on the website of the Income Tax Department.

Source : http://profit.ndtv.com/

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Unhappy with 7th Pay Commission hike, government employees to go on strike on July 11

Unhappy with 7th Pay Commission hike, government employees to go on strike on July 11

Government Employees Strike

The 7th Pay Commission report that received a nod from the Cabinet chaired by Prime Minister Narendra Modi, will levy a pay hike of 23.55%.

Nearly 32 lakh central government employees have announced they will be going on a strike starting July 11, protesting against the 23.55% salary hike approved by the Cabinet on Wednesday, Zee Business channel news frash indicated.

Earlier in the day the Cabinet approved the recommendations put forth by the 7th Pay Commission panel, which will impact the salaries of one crore government employees.

Under the final approval, the basic salary of government employees will be hiked by 15% and the overall 7th Pay Commission pay hike stands at 23.55%. The central government employees, unhappy with the rate of pay hike had warned earlier that they will stage a strike on July 11, demanding a pay rise of atleast 30%.

At current levels, the salary hike is the lowest in 70 years, but a senior government official stated tight fiscal situation as the reason, stating that a provision to increase it to 18-20% was still open.

On July 4, M Krishnan, Secretary General of the Confederation of Central Government Employees and Workers issued a notice to the employees who are member and affiliated organisations regarding the pursuance of an indefinite strike from July 11 2016.

Krishnan had earlier said that if the government adopts delayed tactics or issue unilateral orders rejecting our demands, then confrontation shall become inevitable.

The Confederation of Central Government Employees & Workers on June 27, also put up a notice calling for an indefinite strike from July 11 and demonstrations and rallies in front of all important government offices and centres from July 4 to July 10.

Source: dnaindia

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Cabinet approves 7th Pay Commission recommendations

Cabinet approves 7th Pay Commission recommendations

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years.

The Union Cabinet on Wednesday approved the recommendations made by the 7th pay commission, news agency ANI reported.

The details of the approval, which will be made public soon, is likely to see a higher increase in the basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners.

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.

The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments.

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7th Pay Commission report: Government set to accept all recommendations; deny retro effect

7th Pay Commission report: Govt set to accept all recommendations; deny retro effect

 

pay-commission-award-7th-CPC

 

The Cabinet is likely to approve the 7th Pay Commission award in its entirety soon. Although the pay increases recommended by the commission will take effect from January 1, 2016, the Centre may choose to disburse the increased allowances only prospectively, official sources said.

 

If the revised allowances take effect only from, say, September this year, the savings to the exchequer would be to the tune of Rs 11,000 crore. Additionally, if the railway ministry decided to toe the Centre’s line, the national transporter will save around Rs 3,800 crore.

 

The salary revision, which will benefit about 50 lakh government employees and 58 lakh pensioners, is expected to boost consumption demand and help achieve higher economic growth in FY17.

 

Allowances are currently roughly half of the Centre’s salary bill; as per the pay panel’s award, the steepest increase — 63% — was in allowances, while the overall rise in pay, allowances and pensions recommended was 23.55%.

 

The Budget in February had provided `53,500 crore towards the pay panel-induced overall rise in pay, allowances and pension (PAP) and also to finance the one-rank-one-pension scheme for the armed forces. The commission, in its November 2015 report, had estimated the additional outgo in FY17 due to its award at `73,650 crore.

 

“A Committee of Secretaries (headed by the Cabinet secretary PK Sinha), has finalised its report on Pay Commission recommendations… We will soon make a draft Cabinet note based on the report,” finance secretary Ashok Lavasa said. Sources said the report will be considered by the Cabinet as early as Wednesday. The committee was set up in January.

 

While there is no official word on the exact provision made in budget for higher pay, Lavasa in a recent interview to FE said that its premature to say whether the provisions made in the budget are adequate or not to meet the pay panel requirements.

 

Source : http://www.financialexpress.com/

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7th Pay Commission: Cabinet may clear higher increase tomorrow

7th Pay Commission: Cabinet may clear higher increase tomorrow

Latest-7th-Pay-Commission-News

New Delhi: The Cabinet tomorrow is likely to approve higher increase in basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners.

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.

“Considering the tight fiscal position this year, the government may improve upon the Pay Commission recommendation for basic pay to 18 per cent or at best 20 per cent,” a senior official said.

The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments.

A secretaries’ panel, headed Cabinet Secretary P K Sinha, has already vetted the 7th Pay Commission recommendation and its report is being translated into a note for Cabinet.

“It in most likelihood will come up before the Cabinet tomorrow,” the official said.

The government had in January set up the high-powered panel to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP.

The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.

The secretaries’ panel may have recommended raising minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.

While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.

Around Rs 70,000 crore has been provisioned for it, the official said.

PTI

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Secretaries committee submits report on 7th Pay Commission, govt to soon announce it

Secretaries committee submits report on 7th Pay Commission, govt to soon announce itNew Delhi:The government is likely to soon announce the implementation of 7th Pay Commission that would hike the salaries and allowances for over 1 crore government employees and pensioners by at least 23.5 per cent.

A Secretaries committee headed by Cabinet Secretary P K Sinha has submitted its report on the recommendations of the 7th Pay Commission which may be accepted, a financial ministry official said.

Based on the panel’s report, the Finance Ministry is preparing a Cabinet note and the issue may come up for approval by the Cabinet as early as June 29.

“Committee of Secretaries (CoS) has finalised its report on Pay Commission recommendations… We will soon (file) draft Cabinet note based on the report,” Finance Secretary Ashok Lavasa said here today.

The government had in January set up a high-powered panel headed by Cabinet Secretary to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The Pay Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP.

The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

The 23.55 per cent increase includes hike in allowances.

The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.

Sources said the secretaries’ panel may have recommended higher pay increase, with minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.

While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.

Around Rs 70,000 crore has been provisioned for it, officials said.

Lavasa said the 7th Pay Commission report will be effective from January 1.

PTI

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7th Pay Commission Latest News – Increase in Basic Pay meagre but expected gains out of other compensation, a solace

7th Pay Commission Latest News – Increase in Basic Pay meagre but expected gains out of other compensation, a solace

Here are some areas of 7th Pay Commission report which are much beneficial to Central Government Employees. If Govt accepts these recommendations as such overall compensation package of Central Government Employees will be more attractive.

7th Pay Commission Latest News – Increase in Basic pay of 14.22% which is lowest increase out of any Pay Commission – However, certain Positive Aspects of Recommendations made in the 7th CPC Report mainly in the areas of Central Government Employees Welfare measures and Retirement Schemes may be solace to Central Government Employees

After a long wait of 10 years, Basic Pay of Central Government Employees has been proposed for an increase of 14.22%. In any standards, this quantum of increase can not be justified to be adequate. In fact this is the lowest increase out of any pay commission constituted in India so far. Let’s wait and see whether Empowered Committee formed by the Govt to process the present pay commission report make any positive changes to it.

Though 7th Pay Commission report failed to convince Central Government Employees in pay and allowances front, there are certain positive aspects in the recommendations which mainly relate to welfare measures, compensation and Retirement benefits. In the following paragraphs we would be discussing those which might surely improve overall Compensation package of central government employees in the long run.

7th Pay Commission’s decision to retain CPI-IW with base Year 2001=100 for determining Dear Allowance rate:

As demanded by various Central Government Employees Federations 7th CPC has proposed for retaining All India Consumer Price Index (Industrial Workers) with base year 2001=100. This means the allowance offered by govt to compensate inflation would continue to be calculated in the same as it is done presently, after deducting the quantum of DA (@ 125% for 126%) that is to be merged with pre-revised pay.

Dearness Allowance with effect from 1st January 2016 =[ (Avg of AICPI for the period from January 2015 to December 2015 – 115.76)*100/115.76] – 125 (or) 126

Interestingly, the earlier Pay Commission (6CPC) had proposed for adopting to new series of index (CPI-IW with base year 2001=100) which was later accepted by Govt. This measure needed adjustment in the calculation formula in respect of dearness allowance with effect from 1st January 2006 in the form of linking factor of 4.63 between base year 1982=100 and 2001=100

7th Pay Commission as well as Govt could justify in retaining CPI-IW with base year 2001=100 as new series of the index with base year 2015=100 is yet to be unveiled.

A new series of CPI-IW for DA Calculation means adjustments from old base year to new base year using linking factor and rounding-off which would surely put breaks on higher DA to Central Government Employees. So, 7th Pay Commission’s recommendations on retaining the present series of CPI-IW for DA purpose is welcome one.

Enhanced Central Government Employees General Insurance Scheme Coverage up to Rs. 50 lakh:

7th Pay Commission Recommended Rates of CGEGIS

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

Increase in Gratuity ceiling to Rs. 20 lakh with DA indexed Gratuity for the first time:

7th Pay Commission proposed that ceiling in respect of Gratuity will have to be increased from the existing ₹10 lakh to ₹20 lakh.

Moreover, for the first time DA indexed Gratuity viz., increase by 25 percent whenever DA rises by 50 percent has been introduced by the Commission. This measure would surely compensate the inflation factor as gratuity of Rs. 20 lakh received by a retiring employee in 2016 will never be equal to the same amount received by another in 2025.

Further, 7th Pay Commission has proposed that 20 times of monthly emoluments is to be paid as gratuity for employees who intend to retire after serving 10 year of service but before 20 years of service. Presently, 10 times of monthly emoluments is being paid for length of service between 10 years to 20 years.
Child Care Leave extended Single Male Central Government Employees also:

Child Care Leave (CCL) is granted to women employees presently for a maximum period of two years (i.e., 730 days) during their entire service for taking care of their minor children (up to eighteen years of age).

In addtion to women employees, 7th CPC has propsed that a male employee who is single, will also be entited to Child Care Leave.

House Building Advance (HBA) – Loan Ceiling increased to Rs. 25 lakh:

As far Housing loan extended by Govt to its employees is concerned the Commission proposes 34 times of Basic Pay or Rs.25 lakh OR anticipated price of house, whichever is least. This is more than three times higher than the present level.

Children Education Allowance and Hostel Subsidy increased by 1.5 times – whenever DA increases by 50%, these two reimbursements will be increased by 25%

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 recommends Higher Grade Pay for certain Posts in Central Government Service considering the service conditions:

On the basis of nature of work and anomalies, 7th Pay Commission has recommended higher grade pay for certain cadres.

Post wise higher grade pay recommended list is given below:

Sl.No Ministry / Dept Name of the Post Present 6cpc Grade Pay (Rs.) New Grade Pay recommended by 7th Pay Commission (Rs)
1. Railways Dietitians 4200 4600
2. Railways Senior Dietitians 4600 4800
3. Railways Assistant Dietetic Officer 4800 5400 (in PB-2)
4. Andaman and Nicobar Administration Junior Radiographer 2000 2800
5. Railways Perfusionists 2400 4200
6. CGHS Dental Hygienists 2400 4200
7. Defence Russian Officers Translators 4600 5400
8. Defence Russian Senior Officers Translators 5400 6600
9. Defence Russian Editors 6600 7600
10. Central Sheep Breeding Farm Sheep Shearer cum Supervisor 1800 2400
11 Indian Postal Service Inspector 4200 4600
12. Indian Postal Service ASPOs 4800 5400
13.

National Archives of India

Assistant Archivists 4200 4600
14. National Archives of India Archivists 4600 4800
15. National Archives of India Scientific Officer 4600 4800, 5400(12 yrs)
16. All Ministries Officers in organised accounts cadres 4800 5400
17. Dr. RML Hospital Junior ECG Technician/Junior Cardiac Technician 2400 2800
18. Andaman and Nicobar Administration Junior Agriculture Assistant/Junior Soil    Conservation    Assistant 2400 2800
19. Andaman and Nicobar Administration Bus Conductors 1800 1900
20. Mines Senior Technical Assistants (STAs) 4200 4600
21. JTA, Store Keeper, 2800 4200
22. Assistant Store Keeper 1900 2400
23. Electrical Supervisor 2800 4200
24 Laboratory Assistant 2400 2800
25 Machine Man, Junior Press Assistant 1800 1900
26 CBI Sub Inspector 4200 4600
27 Inspector 4600 4800
28 Railways Assistant Station Master (ASM) 2800 4200
29 Railways Commercial Clerks + Enquiry Cum Reservation Clerks (ECRCs)+Ticket Checking staff (TTEs and TCs)= Commercial and Ticketing Staff 19002400 20002800
30 Railways Accounts 4800 5400
31 Railways Chemical  and  Metallurgical  Assistants 4600 5400
32 Shipping Head Light Keeper 4200 4600
33 Shipping Navigational Assistant Gr.II 2800 4200
34 Shipping Navigational Assistant Gr.III 2400 2800
35 Shipping Light House Attendant 1800 1900
36 Statistics Director General, Central Statistics Office HAG+ L17
37 Textiles Technical Officers 4200 4600
38 Textiles Assistant Director Gr. II (Technical) 4600 4800
39 Town and CountryPlanning Organisation Planning Assistants 4200 4600
40 Central Water Commission (CWC) Senior Research Assistant 4200 4600
41 Central Water Commission (CWC) Assistant Research Officer 4600 4800
42 Central Ground Water Board (CGWB) Technical Operator (Drilling) 1800 1900
43 National Academies heads of National Academies Apex Scale Rs.80000
44

Intelligence Bureau (IB)

ACIO-II 4600 4800
45 Intelligence Bureau (IB) ACIO-I 4200 4600

Be the first to comment - What do you think?  Posted by admin - June 17, 2016 at 7:08 pm

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Paramilitary chiefs meet Rajnath, discuss 7th Pay Commission report

Paramilitary chiefs meet Rajnath, discuss 7th Pay Commission report

Archana-Ramasundaram

Archana Ramasundaram among the five paramilitary chiefs met Home Minister Rajnath Singh over 7th Pay Commission anamolies on Wednesday.

New Delhi: Concerned over increasing pay disparity between Paramilitary personnel and their defence and civilian counterparts, the five paramilitary chiefs on Wednesday met Union Home Minister Rajnath Singh and discussed issues related to “anamolies and shortcomings” in the Seventh Pay Commission report.

Five chiefs, including Krishna Chaudhary (ITBP), K Durga Prasad (CRPF), Archana Ramasundaram (SSB), Surender Singh (CISF) and O P Singh (NDRF), met the Singh at his office in South Block here and before discussion, they presented a memorandum to him.

The government in January had set up a 13-member Empowered Committee of Secretaries (CoS) headed by the Cabinet Secretary for processing the recommendations of the 7th Pay Commission, which has bearing on remuneration of 48 lakh central government employees and 52 lakh pensioners.

The Empowered Committee of Secretaries is functioning as a Screening Committee to process the recommendations with regard to all relevant factors of the Commission in an expeditious detailed and holistic fashion.

TST

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7th Pay Commission – Revision in 7th CPC report expected to be made by Empowered Committee

A summary of Expectations of Central Government Employees on changes required in 7th Pay Commission report which is being processed by Empowered Committee of Secretaries

7th Pay Commission review process by Empowered Committee of Secretaries – Changes / Revision expected by Central Government Employees in Minimum Pay, Fitment Formula, Annual Rate of Increment, MACP, House Rent Allowance, and Transport Allowance among others

Recommendations of Empowered Committee on 7th Pay Commission report can be expected from now onwards , as it is reported that the top bureaucrats appointed by govt for this purpose would wrap up their review process soon. It is still unclear whether staff side leaders would called for negotiations on the demands of NJCA for revising the 7th Pay Commission report in many areas.

NJCA, the joint body of major Staff Side Associations from Central Government Employees, Railway Employees, and Defence Civilian Employees met Empowered Committee four times recently and submitted Staff Side Demands such as revision of Minimum Pay, Fitment Formula, House Rent Allowance, Transport Allowance, Annual Rate of Increment, number of upgradations under MACP etc.

Based on these Staff Side Demands we have summarized here the Changes / Revision Expected by the Employees on the 7th Pay Commission Report, which have to be recommended by the Empowered Committee to Union Cabinet for its approval.

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 Service 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 observed 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.

Source: gconnect

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7th Pay Commission – Empowered Committee Expected to Submit Report by This Week End

Empowered Committee of Secretaries headed by Cabinet Secretary PK Sinha is all set to meet on coming Saturday (June 11) to give final shape to the changes on 7th Pay Commission recommendation.

7th Pay Commission – Empowered Committee Expected to Submit Report by This Week End – This will give the much needed boost to lakhs of government employees.

Empowered Committee of Secretaries headed by Cabinet Secretary PK Sinha is all set to meet on coming Saturday (June 11) to give final shape to the changes on 7th Pay Commission recommendation.

This will give the much needed boost to lakhs of government employees who are anxiously waiting for the implementation of the recommendation of the 7th Pay Commission.

The secretaries group is expected to meet on June 11 to finally wrap up its report on the remuneration of government employees.

Reliable Sources further state that it will take only a few days afterwards by the finance ministry to implement the higher pay package for central government employees.

Reliable sources add, the secretaries group has recommended between Rs 2,70,000 and Rs 21,000 hike for the higher and the lower level. This is twenty thousand more in the upper limit prescribed by the 7th CPC and three thousand more in the lower level set by the commission.

It may be recalled that the government had set up a high-powered panel headed by Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.

Source: Zee News

Be the first to comment - What do you think?  Posted by admin - June 8, 2016 at 10:10 am

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7th Pay Commission News – Parity of Pension of Pre-2016 Pensioners with Post-2016 Pensioners

RSCWS requests Govt to implement Seventh CPC regarding option I for fixation of Pension of Pre-2016 Pensioners

7th Pay Commission News – RSCWS representation to Govt pointing out the Parity of Pension of Pre-2016 Pensioners with Post-2016 Pensioners

Railway Senior Citizens Welfare Society has submitted a memorandum to the Cabinet Secretary with regard to parity in pension of pre-2016 pensioners with post-2016 pensioners

RAILWAY SENIOR CITIZENS WELFARE SOCIETY
(Estd. 1991, Regd. No. 1881 – Under Registration of Societies Act),
Head Office: 32, Phase- 6, Mohali, Chandigarh -160055
Website http://rscws.com Email: rscws1991@gmail.com
Identified & Recognised by DOP&PW GOI under Pensioners Portal

No.RSCWS/ CHD/Memo/2016-9

Dated: 06-06-2016

Cabinet Secretary, Government of India &
CHAIRMAN, EMPOWERED COMMITTEE OF SECRETARIES ON 7TH CPC,
Cabinet Secretariat, Rashtrapati Bhawan, New Delhi – 110 004

CC to: cabinet@nic.in

Dear Sir,

Subject:- Parity of Pension of Pre-2016 Pensioners with Post-2016 Pensioners – as per Recommendations of Seventh Pay Commission. Reference: Para 10.1.67 of Seventh Pay Commission Report

1. We are deeply anguished and shocked to learn from the Secretary Staff Side, JCM, that you had indicated in the meeting with the representatives of JCM Staff Side on 26-5-2016, that the Departments of Pension and Defence were of the view that the first option recommended by the 7th CPC to bring about the parity with the past pensioners is unfeasible and impracticable – due to the non-availability of the requisite records.

2. Denial of Parity to Past Pensioners is going to cause a major financial loss to the Past Pensioners and would naturally agitate them seriously. The issue, therefore, needs reconsideration especially in view of the following points:

i) Service Records are protected documents and cannot be destroyed without specific orders of the competent authority.

ii) The views of the DOP&PW & Defence about the non-availability of the requisite records are too vague, unfounded and unjustified;

iii) Even if the Service Records of some of the Pensioners were not available, the same can be reconstructed/recast as per prescribed procedures and as per directions of various courts issued from time to time in such cases.

iv) All the Past Pensioners cannot be made to suffer heavy financial loss due to some missing records – which can in any way be reconstructed as stated above.

v) 5th & 6th Pay Commissions had recommended for grant of Modified Parity to past Pensioners. The orders were implemented on the basis of service records.

vi) Fifth CPC while evolving the norm of modified parity had mentioned in its Report that further improvements could be brought about by future Pay Commissions. It is after 20 years that 7th CPC taking a step in this direction recommended consideration of number of increments earned in that level while in service. The recommendation cannot be set aside on the plea of non-availability of record.

vii) Recommendations of the 7th CPC in Para 10.1.67 (option 1) for Parity of Pension of Past (Pre-2016) Pensioners were based on legal and Constitutional grounds and, as such, the same may please be implemented.

3. It is, therefore, requested that:

a) Recommendation of the Seventh CPC regarding option I for fixation of Pension of Pre-2016 Pensioners may please be implemented – keeping in view the above submissions.

b) Pay Matrix may please be modified so as to give equitable rise at all levels through same Index for fixation of Pay & Pension of Pre-2016 Pensioners.

c) Pension of Pre-2016 Pensioners who were senior and retired in higher Level of Posts may please be revised at par with the junior Post 2016 Pensioners who may get higher pension due to merger of Pay scales or having longer years of service in lower scale.

Yours truly,

(Harchandan Singh)

Secretary General,

RSCWS

Download RCWS Memorandum dated 06.06.2016

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7th Pay Commission report to be put up before Cabinet in June

Government is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel. It is is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel

7th Pay Commission report to be put up before Cabinet in June – 7th CPC implementation Notification to come at the earliest

Central government employees can expect to get some good news trickling in from government sources towards the end of June.

As per reports, the Finance Ministry is likely to table the 7th Pay Commission report to the Cabinet for approval in the last week of June.

The 7th pay panel headed by AK Mathur had recommended the minimum salary for central government employees at Rs 18,000 and maximum salary at Rs 2,50,000. As employees protested against the wage hike calling it the “lowest ever” raise, the government set up the Empowered Committee of Secretaries group to review the AK Mathur-panel’s recommendations.

The Empowered Committee of Secretaries on the Seventh Central Pay Commission is expected to soon wrap up its report on the remuneration of government employees.

Sources added that even the Prime Minister’s Office is keen on a favourable pay hike for the central government employees, so the panel is likely to recommend a minimum salary at Rs 24,000 and the highest salary at Rs 2,70,000.

Sources added that the government is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel. The payout could be substantial with salary hike and arrears adding up to a Rs 1.02 lakh crore burden on government finances.

Report add that once the report moves from the table of the empowered group of committee to the cabinet, there is no reason why the cabinet would inordinately delay it.

The Finance Ministry is keen that higher salaries reach government employees just before the festive season starting mid-August, as spurt in consumption during the festive period will have a domino effect on the economy.

Source: Zee News

Be the first to comment - What do you think?  Posted by admin - May 28, 2016 at 7:45 pm

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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.

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

Be the first to comment - What do you think?  Posted by admin - May 20, 2016 at 10:05 pm

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7th Pay Commission Latest News – Issues to be addressed

It is a general view of all Central Government Employees that certain allowances, reimbursement and advances which have been abolished or restricted in 7th CPC report are to be allowed to continue

7th-CPC-Issues

7th Pay Commission Latest News – Employees of Accounts and Audit Department raises certain Common issues in respect of 7th Pay Commission Recommendations which are applicable to all Central Government Employees

7th Pay Commission Latest News – As per representation made by the employees of Accounts and Audit Department certain common issues in respect of allowances, Interest Free Advances and Interest bearing Advances

Issues related to Allowances:

House Rent Allowance:
Recommendation of 7th Pay Commission:

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”

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

In para 8.7.14, the Commission took note of the link between increase in HRA and increase in house rent after implementation of recommendations of 6th CPC. There was a sharp rise in the index from the first half of 2009, immediately following 6th CPC recommendations. There is likely to a similar rise in House Rent after implementation of recommendations of 7th CPC. Hence the existing percentage of House Rent may be retained at the rate of 30 percent, 20 percent and 10 percent of the new Basic Pay for Class X, Y and Z cities respectively.

Composite Transfer and Packing Grant (CTG)

Recommendation of 7th Pay Commission:

The Commission recommended that CTG should be paid at the rate of 80 percent of last month basic’s pay. However, for transfer to and from the island territories of Andaman, Nicobar and Lakshadweep, CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

As the labour charges and cost of packing materials are continuously rising, the CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay.

Reimbursement of staying accommodation charges:

Recommendation of 7th Pay Commission:

The commission made flowing recommendations:

Level Level Ceiling for
Reimbursement (Rs.)
14 and above 7500
12 and 13 4500
9 to 11 2250
6 to 8 750
5 and below 450

For levels 8 and below, the amount of claim (up to the ceiling) may be paid without production of vouchers against self-certified claim only. The self- certified claim should clearly indicate the period of stay, name of dwelling, etc. The ceiling for reimbursement will further rise by 25 percent whenever DA increases by 50 percent. Additionally, it is also provided that for stay in Class‘X’ cities, the ceiling for all employees up to Level 8 would be Rs.1,000 per day, but it will only be in the form of reimbursement upon production of relevant vouchers.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

The main objective of the Audit Department is to carry out Audit function which entails long periods of stay out of headquarters. Consequently, officials at pay level 5 to 11 have to visit small towns (at Block/Sub-division level). For such places, as per recommendations of the 7th CPC, officials of pay level 8 and below will be entitled to the claim without production of vouchers (ie. against self-certified claim only), where as officials of the pay level 9 and above will have to produce vouchers for the similar claim.

To eradicate such anomalous situation, it is submitted that claims, as admissible upto pay level 8, may be paid without production of vouchers against self-certified claim to all pay level officials.

Reimbursement of travelling charges:

Recommendation of 7th Pay Commission:

The commission made following recommendations:

Level Level Ceiling for
Reimbursement (Rs.)
14 and above AC Taxi charges up to 50 km
12 and 13  Non-AC Taxi charges up to 50 km
9 to 11 Rs. 338 per day
6 to 8 Rs. 225 per day
5 and below Rs. 113 per day

Similar to Reimbursement of staying accommodation charges, for levels 8 and below, the claim (up to the ceiling) should be paid without production of vouchers against self certified claim only.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

In the same analogy, as mentioned against reimbursement of staying accommodation charges above, it is submitted that claims, as admissible upto pay level 8, may be paid without production of vouchers against self-certified claim to all pay level officials.

Family Planning Allowance:-

Recommendation of 7th Pay Commission:

The Pay Commission has recommended to abolish the Family Planning Allowances

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

This is an incentive for promoting small family norms and therefore, it needs to be continued.

Interest free advances:
Medical Advance:

Recommendation of 7th Pay Commission:

The pay Commission has recommended abolition of Medical Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

As per the existing practice, medical advance is paid to an employee to the extent of 90% of the estimated cost of treatment in case of treatment of self and dependents. Cost of treatment for illness particularly of critical/life threatening ailments, such as heart transplant/ cancer/ kidney transplant etc., even under CGHS rules, is extremely expensive. It is also pertinent to note that many hospitals even in emergent situations insist on advance payment before commencing treatment/surgery. It is very difficult for a low paid employee such as MTS/LDC/UDC etc or even for group ‘B’ and ‘A’ officers to make available large amounts required for medical treatment. Without medical advance, an official will have great difficulty in getting proper/appropriate medication.

Therefore, it is submitted that medical advance may be continued with as per existing practice.

TA Advance:

Recommendation of 7th Pay Commission:

The pay Commission has recommended abolition of TA Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

The main function of IA &AD is auditing of Central/State Government/ PSUs etc. These auditee units are spread across the states down to the block/Panchayat level. In order to discharge audit responsibility, touring is a continuous requirement. It is not an occasional tour for short period, expenditure of which can be met out by the individual and reimbursement claimed subsequently. The officials have to be on tour continuously for upto a quarter (i.e 03 months) or even more.

For an official at pay level 6(Senior Auditor), as per the recommendations of the 7th CPC, the tour allowance for a day works out to Rs. 1770/- (Rs. 750 for accommodation+225 for travelling +Rs. 800 for food bills) and for a month it would be Rs. 53250/-. Besides, he has to incur expenditure for to and fro (i.e Hqrs. to field office and back) train/ bus fare. Monthly salary of a pay level 6 employee, as per recommendations of 7th CPC is Rs. 35400/-. As is clearly brought out, the likely monthly expenditure on tour will be significantly more than the employees’ monthly salary.

Therefore, advance is necessary to defray tour expenditure for performing official duties. This will create huge administrative issues in the department and adversely impact the Audit functions.

In view of the above, TA Advance, requires to be continued and paid as per extant provisions.

LTC Advance:

Recommendation of 7th Pay Commission:

The pay Commission has recommended abolition of LTC Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

Under LTC facility the expenses incurred on travel to visit the destination is reimbursable. Advance upto 90% of expenses on travel to visit the destination place is admissible. This amount serves as great help to the employees to undertake the journey in arranging train/air tickets. Without this advance, the employees will find it difficult to purchase train/air tickets for his family

Besides travelling expenses, an official has to incur expenditure on account of Boarding and lodging/local travel also.

As per the recommendation of 7th CPC, officials of pay level 05 to 08 are entitled to travel by train. The travel tickets for family of four will cost more than Rs. 18000/- for a journey from Delhi to Thiruvananthapuram. Further, for level 9 and above the return tickets in economy class for the same destination i.e. Delhi to Thiruvananthapuram will cost more than Rs. 2 lakh.

A government official cannot afford such a huge amount to spent upfront for performing journey for availing home town LTC or All India LTC. Hence LTC advance is required to be continued as per extant provisions.

Bicycle Advance, Warm Clothing Advance:

Recommendation of 7th Pay Commission:

The pay Commission has recommended abolition of these Advances.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

These advances may continued to be paid as per existing rules as these are admissible only to low paid employees upto Grade pay of Rs. 2800 /- (Level 5)

Festival advance, advance in the event of natural calamities like Flood, Drought, Cyclone etc.

Recommendation of 7th Pay Commission:

The pay Commission has recommended abolition of these Advances.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

These advances may continue to be paid as per existing rules as these interest free advances are payable to Group ‘B & C’ employees as a welfare measure.

Advance of TA to a family of a deceased Govt. employee

Recommendation of 7th Pay Commission:

The pay Commission has recommended abolition of this Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

This advance may continue to be paid as per existing rules as this helps the family of a deceased Govt. employee to cope with immediate expenses for travel to their place of settlement.

Interest Bearing Advances:-
Motor Car/Motor Cycle Advance.

Recommendation of 7th Pay Commission:

The pay Commission has recommended abolition of this Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

The Pay Commission has abolished the Motor Car/Motor Cycle Advance on the plea that there are several schemes available in market. There are several schemes in the markets for House Building Advance also. However, the Pay Commission has not only recommended to continue with HBA but also proposed to increase the ceiling. Therefore, the plea of the commission to discontinue MCA on the basis that schemes for purchase of vehicles are available in the market does not hold good.

Further, several documentation/guarantees are required for seeking the said advances from the market. As it is convenient and safe for a Government Servant to avail such advances from the office without any hassles, these interest bearing advances may be continued as per the extant provisions.

Fixed Medical Allowance (FMA) to Central Government Pensioners

Recommendation of 7th Pay Commission:

The Commission has maintained status quo of the Fixed Medical Allowance which is presently paid @ Rs. 500/- per month.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

The costs have increased for medicines, consultations fees and Pathological Tests required for day to day medical treatment. This has risen at a much steeper rate than that of the General Price Index. A large number of pensioners are residing in remote areas or villages having no access to CGHS dispensaries and as such are wholly dependent on the paltry amount of Fixed Medical Allowance for day to day treatment.. Therefore it needs to be revised to at least Rs. 2000/- per month.

Modified Assured Career Progression Scheme (MACPS):

Recommendation of 7th Pay Commission:

Assured Career Progression was introduced in 1999 with a view to grant at least two financial up gradations at an interval of 12 and 24 years where officials are stagnating for want of promotion. It was further modified to 03 financial up gradations on the recommendations of the 6th CPC. However, the
7th CPC recommended continuing with the same without any change. Also the bench mark has been increased from ‘Good’ to ‘ Very Good’

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

There should be at least four financial upgradations in entire service career of an employee at regular interval of 8 years. Hence, the MACPS may be granted to an employee after completion of 8, 16, 24 and 32 years of service.

Further, the bench mark for financial up gradation may be continued as per the existing practice – i.e. the bench mark prescribed for the post for promotion.

Transport Allowance (TPTA)

Recommendation of 7th Pay Commission:

The 7th CPC has just revised the Transport Allowance by merging 125% of DA with the existing rate of transport allowance. The revised rates are as mentioned below:

Pay level Proposed  (Higher TPTA Cities) Proposed  (Other TPTA Cities)
9 and above 7200+DA 3600 +DA
3 to 8  3600+DA 1800 + DA
1 and 2 1350+DA 900 + DA

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

The following is proposed for the revised Transport Allowance (TPTA)

Pay level Proposed  (Higher TPTA Cities) Proposed  (Other TPTA Cities)
9 and above 10000 + DA 5000 + DA
3 to 8  5000 + DA 2500 + DA
1 and 2 2500 + DA 1250 + DA

Child Care Leave (CCL):

Recommendation of 7th Pay Commission:

The 7th CPC has proposed that CCL should be granted at 100 percent of the salary for first 365 days, but at 80 percent of the salary for the next 365 days. However, CCL has been extended to single parent also.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

It is proposed that the CCL be paid at 100 percent of salary for the entire period.

Children Education Allowance (CEA):

Recommendation of 7th Pay Commission:

The Commission has recommended CEA @ Rs. 2250/- per month and Hostel Subsidy @ Rs. 6750/- per month.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

Keeping in view the steep rise in tuition fees, cost of stationery, Books, Uniform etc. the CEA and Hostel Subsidy may be increased @ Rs. 3000/- and @ Rs. 8000/- per month respectively.

Special Casual Leave (SCL):

Recommendation of 7th Pay Commission:

SCL is granted to employees to cover their absence from duty for various occasions like sports events, cultural activities, participation in Republic Day Parade, voluntary blood donation, Trade Union meetings, etc. Full pay is granted during SCL and it can be sanctioned with retrospective effect also.

The Pay Commission has expressed its concern at the widespread use of SCL as a means of getting away from duty. However, because of the extensive scope and case specific nature of this leave, no concrete recommendations have been made.

It has suggested that the government may, however, consider the following: (a) Review the purposes for which SCL is presently granted.

(b) Limit the number of purposes for which an employee can be granted SCL in a year.

(c) Limit the total number of days that an employee can be granted SCL in a year.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

Since SCL is granted to employees to cover their absence from duty for various occasions like sports events, cultural activities, participation in Republic Day Parade, voluntary blood donation, Trade Union meetings/ casting votes in their constituency, it may be continued to be granted as per existing practice.

Source: Indian Accounts and Audit Department

Be the first to comment - What do you think?  Posted by admin - May 17, 2016 at 11:37 am

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Family Planning Allowance be abolished – 7th Pay Commission

7th CPC has recommended for abolition of Family Planning Allowance since the level of awareness regarding appropriate family size has gone up among the government servants. 7th CPC is of the view that many benefits relates to children, viz., Children Education Allowance, Maternity Leave, LTC, etc., are available now.

7th Pay Commission famil planning Allowance Abolished


7th Pay Commission recommended that Family Planning Allowance should be abolished.

7th Pay Commission has proposed for abolishing Family Planning Allowance. Analysis and Recommendations of 7th Pay Commission on FPA is as follows:
Family Planning Allowance (FPA) is granted to Central Government employees as an encouragement to adhere to small family norms. The existing rates are as under:

 

Grade Pay Family Planning Allowance
1300-2400

210

2800

250

4200

400

4600

450

4800

500

5400

550

6600

650

7600

750

8700

800

8900

900

>10,000

1000

There are demands to make it equal to one increment. Representations have also been received requesting that the allowance should be double for those employees who adopt family planning norms after just one child.

Analysis and Recommendations

The Commission recognizes the fact that most of the benefits related to children, viz., Children Education Allowance, Maternity Leave, LTC, etc., are available for two children only. Moreover the level of awareness regarding appropriate family size has also gone up among the government servants. Hence, a separate allowance aimed towards population control is not required now. Accordingly, it is recommended that Family Planning Allowance should be abolished.

Be the first to comment - What do you think?  Posted by admin - May 15, 2016 at 1:57 pm

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