7th CPC Cabinet Decision – Frequently Asked Question

7th CPC Cabinet Decision – Frequently Asked Question

1.) What is the Fitment Factor used in Pay Matrix?

A fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.

2.)Did Cabinet approve for the employees request of changing minimum wages?

No, the 7th CPC recommendation will be implemented (Rs.18000/-)

3.)What would be the current House Building Advance?

The ceiling of House Building Advance from Rs.7.50 lakh to 25 lakh,

4.)When will I get my arrears?

All arrears including pensioner will be paid during this financial year (2016-17) itself.

5.)What would be Rate of Increment?

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

6.)What’s the status of NPS Implementation?

Cabinet decided to form two separate committee for looking into the issues.

7.)What would be my current Central Government Employees Group Insurance Scheme (CGEGIS)?

It will stay at the existing rate of Rs.30, Rs.60 & Rs.120/- for Group C, B & A respectively.

8.)Has the old allowance has been abolished?

Currently No (June’2016). Existing will continue and after 4 month’s there may be changes.

9.)What would be the HRA Percentage after Cabinet Decision?

HRA would be at the rate of 30, 20 & 10 percentage and after 4 month’s there may be changes.

10.)Has there been any changes in Defence Pay Matrix?

Yes, there has been changes in 13A (Brigadier), Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier).

11.)Will there be any changes in Military Service Pay?

Yes, Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.

12.)For pension, what would be multiplication factor?

2.57 would be the factor to determine the pension and will be reviewed after 4 months.

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Finance Ministry Rejects Railway Ministry’s Request for 7th CPC Expenditure Rs 32,000 Crore

Finance Ministry Rejects Railway Ministry’s Request for 7th CPC Expenditure Rs 32,000 Crore

The railway ministry wants the funds to meet expenses to pay for the Seventh Pay Commission’s recommendations

New Delhi: The finance ministry has rejected the request of the railways for Rs.32,000 crore as revenue grant, sought to tide over the impending impact of the Seventh Pay Commission recommendations on the public transporter.

In a communication to the railways, the finance ministry has categorically rejected the Rs.32,000 crore demand expressing its inability to provide the grant, and has asked the public transporter to raise its own resources to manage the finance, said a senior railway ministry official close to the development on the matter.

Earlier, railway minister Suresh Prabhu had written a letter to finance minister Arun Jaitley seeking Rs.32,000 crore as grant from the exchequer’s for implementation of the commission’s recommendations and cited the difficult financial position that the railways is passing through.

“I would therefore earnestly request you to help the ministry of railways and handhold it for the implementation of 7th CPC recommendations,” the railway minister said in the letter last month.

Prabhu hoped that during the coming three-four years, railways would be able to absorb the impact from their resources through gradual adjustment of fares and other non-tariff revenue measures. However, after the rejection of the demand, there would be a fresh attempt by the railway ministry to take up the issue with the finance ministry.

According to the Seventh Pay Commission report, the annual financial impact on the railways will be approximately Rs.28,450 crore in addition to the normal growth which will require to be built into the railway budget 2016-17.

The initial assessment, however, is that this additional impact would be around Rs.30,031 crore over and above the normal assessed growth of Rs.10,816 crore. Prabhu has repeatedly maintained that the pay commission burden is “unbearable” and the railways cannot implement it without government help.

At present, the railways is facing a financial crunch with earnings from freight and passenger earnings below the target. Pay and allowances and pension account for 51.5% of the gross receipts of railways. With the financial impact of the 7th CPC, this will increase to 68% of the gross receipts in 2016-17 at present level of growth. Railways has put in place serious cost-cutting measures and are focusing on fuel management. PTI

Source:www.livemint.com

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Important Fixation Factor in 7th CPC Basic Pay

Important Fixation Factor in 7th CPC Basic Pay 

After the release of 7th CPC Report, all central government employees have calculated the revised pay using the Pay fixation method and using online calculators. However, there are quite a few basic pays values which need to be calculate differently for the exact revised pay as per 7th CPC Recommendation.

Given below are the examples which illustrates why this kind of calculation is important for the exact 7th CPC revised value.

Example: Employee “A” drawing Basic Pay – 21000 (PB III+GP 5400)

Basic Pay ( PB III + GP 5400)                      21000.00

As per 7th CPC (multiplied by 2.57)               53970.00

As per 7th CPC Matrix Table                      56100.00

Above calculation is the right method to derive the new value as per 7th CPC Recommendation.

Consider another employee “B” who is drawing the below figures

Example: Employee “B” drawing Basic Pay – 21630 (PB+GP 5400)

Basic Pay ( PB III + GP 5400)                  21630.00

As per 7th CPC (multiplied by 2.57)           55589.00

As per 7th CPC Matrix Table                  56100.00            X

Employee would have assumed that the revised pay would be 56100/-, however this is WRONG because the revised pay is bunched in two stage.

If you look at both the examples, there is a different in drawn pay and the revised pay as per 7th CPC is the same, which is not right for the employee “B” and a loss for this employee. To overcome this 7th CPC has recommended to do two stage bunching which means employee “B” should be given 3% additional increment and pay fixed in the subsequent cell in the pay matrix.

i.e. Since employee “B” revised value fall under bunching, the revised proposed salary revision would be as follow.

Basic Pay ( PB III + GP 5400)                  21630.00

As per 7th CPC (multiplied by 2.57)           55589.00

As per 7th CPC Matrix Table                  56100.00

7th CPC Clause – Second Cell                  57800.00  √

Source: www.govtempdiary.com

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