7th Pay Commission Pay Revision for Autonomous Bodies – Finmin Orders 2017

7th Pay Commission Pay Revision for Autonomous Bodies – Finmin Orders 2017

F.No.1/1/2016-E.III(A)

Government of India

Ministry of Finance

Department of Expenditure

New Delhi, 13th January, 2017

Office Memorandum

Subject: Pay revision of employees of Quasi-Government Organizations, Autonomous Organizations, Statutory Bodies etc. set up by and funded/controlled by the Central Government – Guidelines

The employees working in the Quasi-government Organizations, Autonomous Organizations, Statutory Bodies etc. set up and funded/controlled by the Central Government, are not Central Government employees and, therefore, the benefits implemented by Central Government in respect of Central Government employees as part of their service conditions, are not directly applicable to the employees working in such autonomous organizations. The application of such benefits as given to Central Government employees in respect of employees of such autonomous organizations as well as the manner and conditions governing such application, including sharing of the additional financial implications arising thereon, requires specific approval of the Central Government. The autonomous organizations are expected to manage their affairs in such a fashion that their dependence on Central Government for financial support to meet the extra financial implications is minimal, as such autonomous organizations are expected to be financially Self-sufficient So as not to cause any extra burden on the Central Exchequer.

2. In the above background, the question of extension of the revised pay scales in terms of the CCS (RP) Rules, 2016 as notified on 25.7.2016 in respect of Central Government employees based on the recommendations of the 7th Central Pay Commission, to the employees of the Quasi-government Organizations, Autonomous Organizations, Statutory Bodies, etc., Set up and funded/controlled by the Central Government, where pattern of emolument structure, i.e. pay scales and allowances, in particular Dearness Allowance, House Rent Allowance and Transport Allowance, are identical to those in case of the Central Government employees, has been considered by the Government and it has been decided that the revised pay scales as per the Pay Matrix, as contained in Part-A of the Schedule of the CCS(RP) Rules, 2016 as well as the principle of pay fixation as contained in the said rules, may be extended to the employees of such organizations, subject to the following stipulations:-

(i) The conditions of service of employees of these organizations, especially those relating to hours of work, payment of OTA etc. are exactly Similar to those in Case of the Central Government employees.

(ii) The revised pay structure shall be admissible to those employees who opt for the same in accordance with the extant Rules.

(iii) Deductions on account of Provident Fund, Contributory Provident Fund or National Pension System, as may be applicable, will have to be made on the basis of the revised pay w.e.f. the date an employee opts to elect the revised pay structure.

3. The revised pay scales contained in Parts B & part C of the Schedule of the CCS(RP) Rules, 2016, shall not be automatically applicable to the employees Of Autonomous Organizations. The concerned Administrative Ministry shall consider such cases keeping in view whether these pay scales are justified for the category of staff of Autonomous Organizations based on functional considerations, recruitment qualifications, as well as the applicable pre-revised pay scales. Based on such an examination by the concerned Administrative Ministry, appropriate proposals, if justified, would be submitted to the Ministry of Finance, Department of Expenditure, through their Integrated Finance.

4. In case of those categories of employees whose pattern of emoluments structure, i.e., pay scales and allowances and conditions of service are not similar to those of the Central Government employees, a separate ‘Group of Officers’ in respect of each of the Autonomous Bodies may be constituted in the respective Ministry/Department. The Financial Adviser of the respective Ministry/Department will represent the Ministry of Finance on this Group. The Group would examine the proposals for revision of pay scales etc. taking into account the views, if any, expressed by the Staff representatives of the concerned organizations. It would be necessary to ensure that the final package of benefits proposed to be extended to the employees of these Autonomous Organizations etc. is not more beneficial than that admissible to the corresponding categories of the Central Government employees. The final package recommended by the ‘Group of Officers’ will require the concurrence of the Ministry of Finance.

5. In regard to the additional financial impact arising out of the implementation of the revised pay Scales, as provided above, the following parameters shall be kept in view:-

(i) In respect of those Autonomous Organizations, which have not been depending upon the Government Grants for their operations or for meeting the cost of salary, including those autonomous organisations which are in a position to meet the additional financial impact from their Own internal resources, the additional financial impact shall be met by the concerned autonomous organizations without any financial support whatsoever from the Government, No financial Support shall be given by the Central Government in Such cases.

(ii) In respect of the other Autonomous Organizations. which are not in a position to meet the additional financial impact, either fully or partly, on account Of the implementation of the revised pay scales, the concerned autonomous organization will take up the proposals with the Advisers of the respective Administrative Financial Ministry/Department, bringing out the extent to which the additional cost could be met internally, the shortfall to be made up and the reasons for the shortfall. While giving concurrence to the implementation of the revised pay scales, the Financial Advisers shall ensure that the extent of Government support is kept at the minimum, and in no case the Government support shall be more than 70% (seventy percent) of the additional financial impact.

(iii) In respect of Autonomous organisations set up under a specific Act of Parliament, not generating adequate internal resources to meet the additional financial impact, the extent of Government support may be more than 70% of the additional impact, provided in the opinion of the concerned Financial Adviser the nature of functions and the fund position of the organisations so warrant.

(iv) The mode of payment of arrears, as laid down in Rule 14 of the CCS(RP) Rules, 2016 shall be followed, subject to the overall financial impact and the capacity of the concerned autonomous organization to absorb the cost without putting any avoidable burden on the Governments finances, provided the conditions mentioned above are met.

6. The Central Government has not taken any decision so far in regard to various allowances based on the 7th Central Pay Commission in respect of Central Government employees and, therefore, until further orders the existing allowances in the autonomous organizations shall continue to be admissible as per the existing terms and conditions, irrespective of the revised pay Scales having been adopted.

Sd/-

(Amar Shth Singh)

Director

Source:http://finmin.nic.in/7cpc/7th%20CPC_regarding%20AB_Guidelines13012017.pdf

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Anomaly Committee of the National Council (JCM) to settle the Anomalies Arising out of the Implementation of the 7th CPC Recommendations

F.No.11/2/2016-JCA-I

Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Personnel & Training

JCA Section

North Block New Delhi

Dated the 9th September, 2016.

OFFICE MEMORANDUM

Subject: Anomaly Committee of the National Council (JCM) to settle the anomalies arising out of the implementation of the Seventh Pay Commission’s recommendations

In accordance with the instructions contained in this Department’s OM of even number dated 16th August 2016, it has been decided to set up, as indicated below, the Anomaly Committee of the National Council (JCM) consisting of representatives of the Official Side and the Staff Side to settle any anomalies arising out of the implementation of the Seventh Central Pay Commission’s recommendations:-

OFFICIAL SIDE

1. Secretary, Chairman, Deptt. of Pers. & Training.

2. Member (Staff), Railway Board.

3. Secretary, Department of Telecommunication.

4. Secretary, Department of Posts.

5. Financial Adviser, (Ministry of Defence.

6. Joint Secretary (Pers), Ministry of Finance.

7. Joint Secretary (Estt.), Deptt. of Personnel & Training.

8. Joint Secretary (CPC), Deptt. of Personnel & Training

9. Deputy Secretary (JCA), Deptt. of Personnel & Training – Member-Secretary.

STAFF SIDE

1. Shri Rakhal Das Gupta

2. Shri Shiv Gopal Mishra

3. Shri Ch. Sankara Rao

4. Shri J.R.Bhosle

5. Shri M.Raghavaiah

6. Shri Guman Singh

7. Shri R.P.Bhatnagar

8. Shri K.S. Murty

9. Shri K.K.N.Kutty

10. Shri R.Srinivasan

11. Shri C.Srikumar

12. Shri M.Krishnan

13. Shri M.S. Raja

2.The working of the Committee would be in terms of the conditions laid down in this Department’s OM dated 16th August 2016 mentioned above.

Sd/-

(D.K.Sengupta)

Deputy Secretary to the Government of India

Source:http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02est/11_2_2016-JCA-I-09092016.pdf

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Committee to Examine the Recommendations of 7th CPC regarding Allowances - reg.

NFIR

National Federation of Indian Railwaymen

3, CHELMSFORD ROAD, NEW DELHI – 110 055

No.IV/NFIR/7 CPC(IMPL)/Allowances/2016

Dated: 08/09/2016

The Secretary(E),

Railway Board,

New Delhi

Dear Sir,

Sub: Committee to examine the recommendations of 7th CPC regarding Allowances-reg.

In the committee meeting held on 1st September 2016, under the Chairmanship of Finance Secretary at North Block (Room No. 72) New Delhi, the Standing Committee Members of JCM (Staff Side) expressed views on 7th CPC recommendations on Allowances. After hearing the views, the Chairman of the meeting stated that further meetings will be held and suggested that in the mean time the Staff Federations may send the list containing department specific Allowances to the concerned administrative ministries and JCM (Staff Side) may send list of common allowances to JS (Imp) MoF, New Delhi for consideration. The Railway Board Chairman was also present during discussions held on 1st September 2016.

In this connection, NFIR desires to convey to the Railway Board that:-

(a) while the previous Pay Commission had doubled various Allowances, the 7th CPC has recommended enhancement of only 50% of the existing rates in those cases of a few allowances recommended to be retained. This needs to be reviewed for improvement.

(b) The 7th CPC recommendations – mainly on Night Duty Allowance, National Holiday Allowance, Transport Allowance would in effect result reduction of existing amounts. These aberrations are required to be rectified and the amount of allowances enhanced.

(c) With regard to Allowances for Running Staff like Kilometerage, ALK etc., there should be separate discussions between the Federations and Railway Board for revision and improvement as was done in the past. Attention is also invited to Para 8.11.19 and 8.11.20 of the 7th CPC report.

(d) The Pay Commission in its report vide Para 8.2.5 has stated that any allowance not mentioned (and hence not reported to the Commission) shall cease to exist immediately. The Pay Commission has further stated that in case there is any demand or requirement for continuation of existing allowance, which has not been deliberated upon by the Commission, it should be re-notified by the Ministry concerned after obtaining due approval of MoF. NFIR suggests that this Para of the report be rejected by the Government. Alternatively, the administrative ministries be empowered for continuance of any such allowance, duly apprising the necessity of continuation to the MoF.

Federation also requests the Railway Board to kindly place before the Committee (chaired by Finance Secretary) the valid points brought out by the Federation through this letter and also impress upon the committee to retain the allowances listed in the Annexure and their enhancement, considering the fact that the Railways’ working is unique, complex and not comparable with any other Ministry.

Yours faithfully,

Sd/-

(Dr.M.Raghavaiah)

General Secretary

Annexure

List of Allowances needed to be continued in the Railways:-

1. Break Down Allowance

2. Family Planning Allowance (should be continued to motivate the Government employees to adopt small family norms. It should be enhanced suitably).

3. Flying Squad Allowance for Ticket Checking Cadre.

4. Funeral Allowance

5. Handicapped Allowance

6. Hutting Allowance

7. Night Patrolling Allowance – needs to be continued in view of the necessity of the Patrolling of Railway Tracks during Night Time).

8. Operation Theatre Allowance

9. Outturn Allowance

10. Overtime Allowance

11. Rent Free Accommodation

12. Training Stipend

13. PCO Allowance to staff working in Production Control Organization.

14. Special Allowance to SSEs working in Workshops and PUs.

15. Special Allowance for performing announcing duties.

16. Daily Officiating Allowance

17. Split Duty Allowance

18. Special Allowance to specified categories.

[Railway Board’s letter No. E(P&A)I-2009/SP-1/Genl dated 30/04/2010).

19. Special Allowance for Central Ticket Squad of Railway Board.

(Railway Board’s letter No. 81/Ticket Checking/2/3 dated 12/05/1981 and letter No. E(P&A)I-2009/SP-l/Genl-1 dated 13/12/2012).

20. Cycle Allowance (The recommendation of Ministry of Railways for discontinuance is unjustified).

21. Special Allowance to Train Superintendent etc

22. Deputation (Duty) Allowance

23. Conveyance Allowance

24. Mileage Allowance for Journeys by Road

25. Children Education Allowance – Though retained at lower rates – needs to be enhanced to atleast 3000 and 8000 per month respectively for Education Allowance and Hostel Subsidy respectively with proviso that whenever D.A increases by 50%, the CEA shall be increased by 25%.

26. Fixed Medical Allowance may be increased to not less than Rs. 2000/- p.m.

27. Night Duty Allowance to be continued and rates revised.

28. Special Duty Allowance to be retained and rates revised.

29. Bad Climate Allowance to be retained and rates revised.

30. Tribal Area Allowance to be retained and rates revised.

31. Dress Allowance to be upwardly revised to not less than Rs. 10,000/-.

32. Washing Allowance may be granted from Rs. 300/- to Rs. 600/- p.m. to maintain the Uniform in nice condition.

33. Water Allowance for Track Maintainers.

Interest free advances to the Railway employees.

All interest free advances payable to Railway employees need to be retained in view of the fact that these are recovered from the salaries of employees.

Source : NFIR

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Future Computation of Dearness Allowance and Adoption base Index figure to Revised Minimum Wage – Regarding

Shiva Gopal Mishra

Secretary

Ph:23382286

National council (Staff Side)

Joint Consulative Machinery for Central Government Employees

13-C, Ferozshah Road, New Delhi-110001

E-Mail : nc.jcm.np@gmail.com

No.NC/JCM/2016

Dated: September 6, 2016

The Secretary(Expenditure),

Ministry of Finance,

(Government of India),

North Block, New Delhi-110 001

Dear Sir,

Sub: Future computation of Dearness Allowance and adoption base index figure to Revised Minimum Wage – Regarding

The revised pay structure, as recommended by the 7th CPC, was given effect as on 01.01.2016 as per the Government’s Notification. The Dearness Allowance, which was computed at 125% ( i.e 125.75 fraction of 0.75 being ignored), got merged with Pay as on that date. The 7th CPC has not indicated as to what base figure of AICPI(IW) the Revised Wages will relate to hereafter wards. As you are aware, the actual DA that was due as on 01.01.2016 was 125.75. It is only due to the practice of ignoring fraction; the DA was determined at 125%. No doubt, the said practice had not been impacting very much except for the postponement of the benefit by six months. It is, therefore, necessary that, Revised Wages are related to a base index figure equivalent to actual Dearness Allowance percentage of 125 that stands merged as on 01.01.2016. This is more so due to the fact that there is no possibility of the ignored fraction of 0.75 being reckoned for any computation in future.

We, therefore, request that, 12 monthly average, which stood at 261.33 as on 31.12.2015, may be taken at 260.46, which would provide the exact percentage of DA at 125. The future percentage increase in DA in other words may be computed with the base figure of 260.46. The next instalment of DA, which has become due as on 1.07.2016 if computed on the above basis of 260.46, shall work out to 3.28%. On ignoring the faction, the DA with effect from 01.07.2016 shall be 3%. We, request you to kindly take the above into account and issue orders for grant of 3% DA w.e.f. 01.07.2016.

Comradely yours,

Sd/-

(Shiva Gopal Mishra)

Secretary (staff side)

NC/JCM & Convener

Source: www.ncjcmstaffside.com

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Setting up of Anomaly Committee to settle the Anomalies arising out of the Implementation of the Seventh Pay Commission’s Recommendations

No.11/2/2016-JCA

Government of India

Ministry of Personnel, Public Grievances and pensions

Department of Personnel & Training

JCA Section

North Block, New Delhi

Dated the 16th August, 2016

OFFICE MEMORANDUM

Subject: Setting up of Anomaly Committee to settle the Anomalies arising out of the implementation of the Seventh Pay Commission’s recommendations.

The undersigned is directed to say that it has been decided that Anomaly Committees should be set up, consisting of representatives of the Officials Side and the Staff Side to settle the anomalies arising out of the implementation of the 7th Pay Commission’s recommendations, subject to the following conditions, namely:

(1) Definition of Anomaly

Anomaly will include the following cases:

(a) where the Official Side and the Staff Side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the Commission assigning any reason; and

(b) where the maximum of the Level in the Pay Matrix corresponding to the applicable Grade Pay in the Pay Band under the pre-revised structure, as notified vide CCS (RP) Rules 2016, is less than the amount an employee is entitled to be fixed at, as per the formula for fixation of pay contained in the said Rules”.

(2) Composition: 

There will be two levels of Anomaly Committees, National and Departmental, consisting of representatives of the Official Side and the Staff Side of the National Council and the Departmental Council respectively.

(3) The Departmental Anomaly Committee may be chaired by the Additional Secretary (Admn.) or the Joint Secretary (Admn.), if there is no post of Additional Secretary (Admn.). Financial Adviser of the Ministry / Department shall be one of the Member of the Departmental Anomaly Committee.

(4) The National Anomaly Committee will deal with anomalies common to two or more Departments and in respect of common categories of employees. The Departmental Anomaly Committee will deal with anomalies pertaining exclusively to the Department concerned and having no repercussions on the employees of another Ministry / Department in the opinion of the Financial Adviser.

(5) The Anomaly Committee shall receive anomalies through Secretary, Staff Side of respective Council upto six months from the date of its constitution and it will finally dispose of all the anomalies within a period of one year from the date of its constitution. Any recommendations of the Anomaly Committee to resolve the anomaly shall be subject to the approval of the Government.

(6) Cases where there is a dispute about the definition of “anomaly” and those where there is a disagreement between the Staff Side and the Official Side on the anomaly will be referred to and “Arbitrator” to be appointed out of a panel of names proposed by the two sides. However, this arbitration will not be a part of the JCM Scheme.

(7) The Arbitrator so appointed shall consider the disputed cases arising in the Anomaly Committees at the National as well as Department level.

(8) Orders regarding appointment of the Arbitrator and constitution of Anomaly Committee at National Level will be issued separately. All Ministries / Departments are accordingly requested to take urgent action to set up the Anomaly Committees for settlement of anomalies arising out of implementation of the 7th Pay Commission’s recommendations, as stipulated above.

Sd/-

(G. Srinivasan)

Deputy Secretary (JCA)

Source:http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02est/11_2_2016-JCA-16082016A.pdf

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Non Payment of HRA as per the Rates Recommended by 7th Pay Commission – A Great Disappointment

Non Payment of HRA as per the Rates Recommended by 7th Pay Commission – A Great Disappointment

The Seventh Pay Commission submitted its report to the Central Government in November 2015. Among the most eagerly-anticipated topics was the recommendations regarding the House Rent Allowances. Typically, an employee spends more than a third of his/her salary on house rent. Keeping in mind this huge and unavoidable expense for Central Government employees living in major cities, the Sixth Pay Commission had recommended that 10, 20 and 30 percent of the Basic Pay be given as HRA.

The various Central Government employee unions and Federations requested the Seventh Pay Commission to recommend to the government that the percentage of HRA be increased. To everybody’s surprise, the Seventh Pay Commission recommended that the government reduce the HRA to 8, 16, and 24 percent. Although many reasons were given for this recommendation, the employees were hugely disappointed. Since the recommendations will be applied for the next ten years, there was a strong demand for the previous HRA levels to continue. As a consequence, all the Central Govt Employee’s Federations began to put pressure on the Central Government to increase the percentage of HRA. This also became one of their most important demands.

The Central Government, meanwhile, bought time for itself by announcing the formation of an Empowered Committee to look into the recommendations of the Seventh Pay Commission. There is no news about the Empowered Committee report, as of this date.

On June 29, the central cabinet gave its approval to the recommendations of the Seventh Pay Commission. It was announced that a committee would be constituted under the leadership of the Finance Secretary, to look into the issue of various allowances, including the HRA. The committee would be advised to present its report in four months. Until then, HRA will be issued as per the pre-revised pay and rates.

During the negotiations that were held to prevent a nationwide indefinite strike(July 11), this issue was discussed in detail. The government agreed to constitute a high-level committee. It was said that the government had “indirectly accepted” the recommendations made by the high-level committee regarding the HRA.

On July 25, the government confirmed the implementation of the Seventh Pay Commission by publishing it in the official Notification & Gazette. There was no change regarding the HRA.

The employees meanwhile recollect, with surprise, the four months’ time that was given to the special committee for discussing the HRA issue. The announcement that the Sixth Pay Commission recommendations will be followed until the committee announces its decision, is considered to be the biggest disappointment of them all.

HRA plays the most important role in salary increment. The employees feel that as per the percentages recommended by the Seventh Pay Commission, the HRA should be given from this month’s salary onwards. Some feel that the arrears in the HRA could have been paid later.

Why is the government hesitating to implement it?

Source:http://7thcpctools.in/7th-central-pay-commission/non-payment-of-hra-as-per-the-rates-recommended-by-7th-pay-commission-a-great-disappointment/

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Setting Up of a High Level Committee to Review the Minimum Wage Multiplication Factor - NAJCM

Setting Up of a High Level Committee to Review the Minimum Wage Multiplication Factor - NAJCM

Shiva Gopal Mishra

Secretary

Ph.: 23382286

National Council (Staff Side) 

Joint Consultative Machinery for Central Government Employees

13-C, Ferozshah Road, New Delhi – 110001

E Mail : nc.jcm.np@gmail.com

No.NC-JCM-2016/7th CPC

August 12, 2016

Shri Arun Jaitley,

Hon’ble Finance Minister,

Govt of India,

North Block,

New Delhi

Sub: Setting up of a high level committee to review the Minimum Wage Multiplication Factor

Ref: Our letter of even No. dated 26.7.2016.

Dear Sir,

We solicit your kind reference to the discussion, the representatives of NJCA had with you in the presence of the Honourable Home Minister, Shri Rajnath Singh and the Railway Minister, Shri Suresh Prabhu and the MOS (R) Shri Manoj Sinha on 30th June, 2016.

We were expecting a quick action on the part of the Government to operationalise the assurance of setting up a high level Committee 10 go into the Minimum wage, Multiplication factor etc. However, we are disappointed that even after a lapse of more than a month no order has been issued by the Government in this regard.

The employees, as you are aware, were angry over the arbitrary determination of the minimum wage by the 7th CPC by mutilating the Dr. Aykhroyd formula and also the propornate multiplication factor.

We, therefore, appeal to you that the concerned authorities may be asked to expedite the issuance of orders setting up the committee and finalization of the Report within the available time of remaining three months.

Thanking you,

Yours faithfully,

Sd/-

(Shiva Gopal Mishra)

Secretary

Source:http://confederationhq.blogspot.in/

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NJCA CIRCULAR – DATED – 12th AUGUST 2016

NCJA

National Joint Council of Action

4, State Entry Road, New Delhi — 110055

No.NJC/2016/7th CPC

August 12, 2016

To

All Constituents of NJCA

 Dear Comrades,

We have been receiving communication from various organizations as also from individual employees after the promulgation of the notification by the Government on 7th CPC recommendations. Most of these communications had been to express the anxiety and in some cases anger too over the delay in setting up the high level committee, assured by the Group of Minister to review the minimum wage and multiplication factor.

We have been pursuing the said issue on a day to day basis and we are fully appreciative of the apprehensions expressed in many of these letters. Since the decision making in the Government is a long procrastinated matter involving various levels and departments, such delays are not uncommon. But we have been informed as to why the assurances held out have not been translated into action.

We have also noted that in the absence of the JCM functioning especially at the Departmental levels of various Ministries, the department specific anomalies and demands are not being subjected to any meaningful negotiations with the respective organizations. We have addressed the Cabinet Secretary to hold a special discussion with us on this subject immediately. Copy of our letter is enclosed.

On 12th August, 2016, we have met the Secretary Pensions to convey our strong resentment over the decision to allow the Option No. 1 given to the pensioners to be implemented subject to feasibility. We have reiterated that while we are open to discussion as to the methodology of verification of the claims of individual petitions in respect of Option No.1, we would not be able to countenance of the non implementation of the recommendation of the 7th CPC on the flimsy ground of non availability of records.

The available NJCA members met today at Delhi to review the situation in the background of the feeling conveyed to us through letters from various organizations. We have after taking note of the anxiety expressed and the ongoing discussions with various authorities over the setting up of the high level committee to wait up to the end of this month before we embark upon any action for the setting upon of the said high level committee. The employees may be apprised of this decision through the requisite campaign programme.

In the meantime, we must endeavour to support the one day strike action slated for 2nd September, 2016 for which the call has been given by the Central Trade Unions (including independent Federations) to the best of the ability of the respective organizations as the objective of the strike is the betterment of the working people in our country.

7th CPC Anomalies

All the Constituents Organizations are requested to forward the various anomalies arising out of the implementation of the 7th CPC notification / CCS (RP) Rules 2016 to the Staff Side office with brief / illustration etc. within in 15 days from today so as to enable us to study and forward the same to the Anomaly committee for settlement.

With greetings,

Yours fraternally,

Sd/-

(Shiva Gopal Mishra)

Convener

Source:http://confederationhq.blogspot.in/

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Seventh Pay Commission Committee for Allowances

Seventh Pay Commission Committee for Allowances

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

RAJYA SABHA

STARRED QUESTION NO-244

ANSWERED ON-09.08.2016

Seventh Pay Commission Committee for allowances

244 . Shri Ram Kumar Kashyap

(a) the steps being taken by the Government for implementing the recommendations of Seventh Pay Commission;

(b) the details of the Committee constituted regarding allowances and minimum pay, domain and time-limit thereof;

(c) by when the recommendations of the Commission regarding pay and allowances will be actually implemented; and

(d) the reasons for delay in this regard?

ANSWER

MINISTER OF FINANCE

(SHRI ARUN JAITELY)

A statement is laid on the Table of the House.

Statement Annexed with the Rajya Sabha Starred Question No. 244 for 09.08.2016 by Shri Ram Kumar Kashyap on Seventh Pay Commission Committee for Allowances

(a) to (d): The Government has decided to implement the recommendations of the 7th Central Pay Commission relating to pay, pension and related issues. The resolution on Government decisions has been issued on 25.07.2016. The matters relating to pay and pension, as decided by the Government, have been implemented with effect from 01.01.2016. In view of the significant departure from the existing provisions recommended by the 7th CPC and a number of representations received from Employee Associations and other stakeholders in this regard, the Government has decided that recommendations on allowances, other than Dearness Allowance, be examined by a Committee comprising Finance Secretary as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel & Training, Posts and Chairman, Railway Board as Members for examination before taking a final decision. The Committee has been asked to submit its report within four months. This Committee has been constituted on 22.07.2016 and the first meeting of the Committee has been held on 04.08.2016.

Source:http://rajyasabha.nic.in

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7th CPC Pension Calculation : Implementation of First Option after Committee Report

7th CPC Pension Calculation : Implementation of First Option after Committee Report

“Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made applicable if its implementation is found feasible after examination by the Committee”

Revision of Pension of pre 7tn CPC retirees : The Commission recommends the following pension formulation for civil employees including CAPF personnel who have retired before 01.01.2016

(i) All the Civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations ) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he / she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.

(ii) The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.

(iii) Pensioners may be given the option of choosing whichever formulation is beneficial to them. It is recognized that the fixation of pension as per formulation in (i) above may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring level. It is therefore recommended that in the first instance the revised pension may be calculated as at (ii) above and the same may, be paid as an interim measure. In the event calculation as per (i) above yields a higher amount the difference may be paid subsequently.(Para 10.1.67 and Para 10.1.68 of the Report)

Both the options recommended by the 7th Central Pay Commission as regards pension revision be accepted subject to feasibility of the implementation. Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made applicable if its implementation is found feasible after examination by the Committee comprising Secretary (Pension) as Chairman and Member (Staff). Railway Board, Member (Staff), Department of Posts, Additional Secretary & Financial Adviser, Ministry of Home Affairs and Controller General of Accounts as Members

Source: http://www.pensionersportal.gov.in/

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DA Merger would have been more Beneficial than 7th Pay Commission

DA Merger would have been more Beneficial than 7th Pay Commission

The 7th CPC submitted its report in November 2015.The Empowered Committee of Secretaries blocked it for 7 long months. Finally the cabinet approved the report without any modification, The Gazette Notification on the pay and allowances of employees was issued on 25-07-2016. The same minimum pay of Rs.18000/- The same multiplication factor of 2.57. Absolutely no change.

Let us now analyse what would have been the case, had 50% of Dearness Allowance / Dearness Relief been merged with pay / pension with effect from 01-11-2011. DA merger had taken place before implementation of 5th and 6th CPC Recommendations. Though we had demanded it this time also, it was not agreed to. Whether enough organizational pressure was there to get the demand accepted is now an academic issue for discussion only. The DA / DR was 51% in January 2011. The percentage rates of DA/DR were 58, 65, 72, 80, 90, 100 107, 113, 119 and 125 during subsequent six monthly periods up to January 2016. Now we shall workout the financial implication of the 50% DA/DR merger notionally. A person with a basic pay / pension of Rs. 10,000/- would have got Rs. 1,06,500/- as difference in DA/DR for the period 01-01-2011 to 31-12-2015. That is the notional loss. It is easy to workout. For every 1,000 rupee as pay / pension, the benefit would have been Rs. 10650/- We cannot even dream of such an amount as pay revision “bonanza”.

Multiplication factor would have increased to 3 instead of 2.57

The pay + DA of the lowest paid employee who was drawing Rs. 7,000/- (5,200 +1,800). On 01-01-2016 would have been Rs. 1,8375/- In that case, no Pay Commission would have dared to recommend Rs. 18000/- as minimum pay as it would have been less than the actual pay + DA drawn by the employee. Even if we accept the 14.29% increase recommended by the 7th CPC, the minimum pay would have been Rs. 21,000/- and so the multiplication factor would have increased to 3 instead of 2.57. Employees and pensioners would have been benefitted significantly.

We were after the euphoria of a Pay Commission. We thought the CPC and the Government will deliver us good. It was a folly on our part in not clinching the demand of merger of 50% DA with effect from 01-01-2011. We shall blame ourselves for that. This is a lesson for us to be cautious in future.

Source: http://cgpakerala.blogspot.in/

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7th CPC Report – Minimum Wage and Multiplier Factor for Central Government Employees – reg.

7th CPC Report – Minimum Wage and Multiplier Factor for Central Government Employees – reg.

NFIR

National Federation of Indian Railwaymen

No.IV/NFIR/7th CPC(Imp)/2016/MoF

Dated : 01/08/2016

Shri Arun Jaitley,

Hon’ble Finance Minister,

(Government of India),

North Block,

Raisina Hills,

NewDelhi- 110001

Dear Sir,

Sub: Seventh CPC Report – Minimum wage and Multiplier Factor for Central Government Employees – reg.

At the outset, NFIR conveys its sincere thanks to you for the statement issued by the Finance Ministry at 20:50 Hrs on 6th July 2016 that the issues relating to pay scales raised would be considered by a High Level Committee. NFIR is also thankful for your free and frank discussions with us on 30th June 2016 at the residence of Hon’ble Home Minister wherein Hon’ble Railway Minister Sh. Suresh Prabhu, Hon’ble Minister of, State for Railways Sh. Manoj Sinha, took part.

NFIR further mentions that the Finance Ministry has since issued notifications on the basis of Union Cabinet’s decisions dated.29th June 2016 for implementation of revised Pay Matrices and pay fixation etc. The Railway employees numbering over 1.3 million are anxiously awaiting for setting up of High Level Committee which would facilitate Employees’ Federations to explain the logic and merits for revision of minimum wage and the multiplier factor.

The NFIR, therefore, requests you to kindly take initiative for constituting High Level Committee at the earliest. It may also be appreciated that the “strike action” by the Central Government Employees which include Railway employees was deferred on the night of 6th July 2016, after the statement for setting up of the High Level Committee was released by the Finance Ministry. In view of this, it would be necessary to set up the High Level Committee without further delay.

With regards,

Yours faithfully,

Sd/-

(Dr.M.Raghavaiah)

General Secretary

Source :NFIR

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7th CPC Fixation of Pay and Payment of Arrears — Instructions - Regarding.

No.1-5/2016-IC 

Government of India 

Ministry of Finance

Department of Expenditure

(Implementation Cell, 7th CPC)

Room No. 214, The Ashok 

New Delhi, the 29th July, 2016

OFFICE MEMORANDUM

Subject: Implementation of the recommendations of the 7th Central Pay Commission — fixation of pay and payment of arrears —instructions- regarding.

The undersigned is directed to refer to the Government of India, Ministry of Finance, Department of Expenditure’s Resolution No. 1-2/2016-IC dated 25.07.2016, bringing out the decisions of the Government on the recommendations of the 7th Central Pay Commission as well as the consequent promulgation of the Central Civil Services (Revised Pay) Rules, 2016, notified vide G.S.R No. 721(E) dated 25th July, 2016 regarding fixation of pay in the revised pay structure effective from 01.01.2016 and to say the provisions governing such fixation of pay have been clearly enunciated in the said Rules.

2. Accordingly, in pursuance of the CCS (RP) Rules, 2016, appropriate necessary action to fix the pay of the employees covered thereunder in the revised pay structure needs to be carried out forthwith in accordance with the provisions contained therein. In order to facilitate a smooth and systematic fixation of pay, a proforma for the purpose (Statement of Fixation of Pay) is enclosed at Annexure. The statement of fixation of pay in revised pay structure as per CCS (RP) Rules, 2016 be prepared in triplicate and one copy thereof be placed in the Service Book of the employee concerned and another copy made available to the concerned accounting authorities [Chief Controller of Accounts/Controller of Accounts/Accounts Officer] for post-check.

3. The revised pay structure effective from 01.01.2016 includes the Dearness Allowance of 125% sanctioned from 01.01.2016 in the pre-revised pay structure. Thus, Dearness Allowance in the revised pay structure shall be zero from 01.01.2016. The rate and the date of effect of the first installment of Dearness Allowance in the revised pay structure shall be as per the orders to be issued in this behalf in future.

4. The decision on the revised rates and the date of effect of all Allowances (other than Dearness Allowance), based on the recommendations of the 7th Central Pay Commission shall be notified subsequently and separately. Until then, all such Allowances shall continue to be reckoned and paid at the existing rates under the terms and conditions prevailing in the pre-revised pay structure as if the existing pay structure has not been revised under the CCS (RP) Rules, 2016 issued on 25.07.2016 .

5. The contributions under the Central Government Employees Group Insurance Scheme (CGEGIS) shall continue to be applicable under the existing rates until further orders.

6. The existing system on interest free advances for medical treatment, Travelling Allowance for family of deceased, Travelling Allowance on tour or transfer and Leave Travel Concession shall continue as hitherto.

7. The arrears as accruing on account of revised pay consequent upon fixation of pay under CCS (RP) Rules, 2016 with effect from 01.01.2016 shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, after making necessary adjustment on account of GPF and NPS, as applicable, in view of the revised pay. DDOs/PAOs shall ensure that action is taken simultaneously in regard to Government’s contribution towards enhanced subscription.

8. With a view to expediting the authorization and disbursement of arrears, it has been decided that the arrear claims may be paid without pre-check of the fixation of pay in the revised scales of pay. However, the facilities to disburse arrears without pre-check of fixation of pay will not be available in respect of those Government servants who have relinquished service on account of dismissal, resignation, discharge, retirement etc. after the date of implementation of the Pay Commission’s recommendations but before the preparation and drawl of the arrears claims, as well as in respect of those employees who had expired prior to exercising their option for the drawal of pay in the revised scales.

9. The requirement of pre-check of pay fixation having been dispensed with, it is not unlikely that the arrears due in some cases may be computed incorrectly leading to overpayments that might have to be recovered subsequently. Therefore, the Drawing & Disbursing Officers should make it clear to the employees under their administrative control, while disbursing the arrears; that the payments are being made subject to adjustment from amounts that may be due to them subsequently should any discrepancies be noticed later. For this purpose, an undertaking as prescribed as per a “Form of Option” under Rule 6(2) of the CCS(RP) Rules, 2016 shall be obtained in writing from every employee at the time of exercising option under Rule 6(1) thereof.

10. In authorizing the arrears, Income Tax as due may also be deducted and credited to Government in accordance with the instructions on the subject.

11. On receipt of the necessary options, action for drawal and disbursement of arrears should be completed immediately.

Sd/-

(R.K Chaturvedi)

Joint Secretary to the Government of India

Source:http://finmin.nic.in/7cpc/7thCPC_Implementation_payfixation_Arrears29072016.pdf

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Agitation against Central Government’s Anti Employees Polices; Delhi March on 29 Aug 2016 - BPMS

Agitation against Central Government’s Anti Employees Polices; Delhi March on 29 Aug 2016 - BPMS

BHARATIYA PRATIRAKSHA MAZDOOR SANGH

(AN ALL INDIA FEDERATION OF DEFENCE WORKERS)

(AN INDUSTRIAL UNIT OF B.M.S.)

(RECOGNISED BY MINISTRY OF DEFENCE, GOVT. OF INDIA)

CENTRAL OFFICE: 2-A, NAVEEN MARKET, KANPUR - 208001

Ref: BPMS / CIRCULAR / 17th TC / 08

Dated: 19.07.2016

To,

The President/General Secretary

Unions Affiliated to the Federation.

Office Bearers & Executive Committee Members

BPMS

Subject: Agitation against Central Government’s anti employees polices; Delhi March on 29 Aug 2016.

Dear Brothers and Sisters,

Sadar Namaskar,

All of you know that Government approved the recommendations of 7th CPC without any change in Cabinet Meeting on 29.06.2016. But Government did not pay heed to resolve the objections raised by the federations affiliated to BMS.

On the call of GENC we extended our moral support to indefinite strike proposed by NJCA which was scheduled to commence on 11 July 2016. But NJCA deceived the employees and called off the strike without any genuine settlement. NJCA proved itself incapable to get the problems of employees redressed and bowed before pressure exerted by Government.

Since neither any anomaly of earlier pay commissions has been resolved nor any demand related to 7th CPC has been accepted so far. In such situation GENC has decided to lead and conduct a humongous rally at Parliament in Delhi on 29 Aug 2016 to get resolved issues related to 7th CPC. Being a constituent of GENC this federation has also decided to be part of it to exert pressure on Government to redress the anomalies and settle the genuine demands made by us.

Therefore, you are requested to take part in the rally with massive number of supporters. The venue of Rally is Jantar Mantar and the programme is scheduled from 10 am to 3 pm. All the arrangements related to accommodation and lodging should be made by union itself.

Your support for tremendous success of the programme is solicited. The charter of demands (Annexure – A) has been attached.

Thanking you.

Enclosed: As mentioned

Brotherly yours

Sd/-

(M P SINGH)

General Secretary

Source:http://bpms.org.in/documents/delhi-march-4tek.pdf

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Hidden facts about 7th Pay Commission Implementation

Hidden facts about 7th Pay Commission Implementation

After the Cabinet approval, the Finance Minister tweeted, “Congratulations to central government officers, employees & pensioners on a historic rise in their salary & allowances through the 7th Pay Commission.”

The Central Government Employees were dismayed by this tweet and wondered how it was described as historic rise. There are so many hidden facts in the cabinet approval for implementation of 7th Pay Commission recommendations

1. What did the Empowered Committee of secretaries do in Sixth months and what did they recommend? There was nothing mentioned about the report of this committee submitted to Cabinet and Whether the cabinet considered the ECoS recommendations or not.

2. This is the first time in the Pay Commission History that Pay Commission recommendation are going to be implemented in staggered manner. Only Basic Pay alone will be revised. All other Allowances will be revised after four months.

3. After second Pay Commission, this is the lowest hike recommended in Pay Scale. Just 14.27%. 30% hike is expected invariably by all cg employees.

4. This is the first time the central government employees are not so excited about the Hike recommended in 7th pay Commission and its Implementation. The reasons are, Very Minimal hike and Implementation of Allowances is deferred.

5. There was an anomaly in sixth pay Commission in granting Annual Increment for the New entrant. If the Govt Servants recruited in the first six months of the year from January 2nd to June 30th, the Annual Increment will be granted on 1st July of next year (i.e after 13 to 18 Months ) .This anomaly is also not addressed by 7th Pay Commission.

6. To address this issue, NCJCM proposed Two Increment dates i.e on 1st January and 1st July . This is not considered by Govt.

7. The Sixth CPC has recommended to grant MACP on Grade Pay Hierarchy. Many Court Cases are won by Govt servants in favour of granting MACP on Promotional hierarchy. But this issue also not considered by Govt and 7th Pay Commission.

8. The Central Government Employees were shocked by the recommendation of reducing the Rates of HRA to 24%, 16% and 8%. Adding further fuel to the fire, the reduced allowances are also not implemented with immediate effect.

9. The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. But the CG Employees welcomed the Pay Commission recommendation in CGEGIES, as it is providing high risk cover. But it is turn down by Government.

10. The only positive fact in 7th Pay Commission Recommendation is its PAY MATRIX. In Sixth Pay Commission, there was disparity in Pay fixation for promotes and new Entrants. The Entry Pay fixed for particular Grade to the New Recruits is higher than the Pay fixed for the Govt Servants promoted to that same Grade. This issue is somehow addressed in 7th Pay Commission by fixing Entry Pay for all Levels in New Pay Matrix.

Source : http://govtstaffnews.in/

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No Proposal to Increase Fitment Factor, Notifications to be Issued Shortly – Finance Minister

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

RAJYA SABHA

QUESTION NO 28

ANSWERED ON 19.07.2016

7th Central Pay Commission recommendations

28 Shri Neeraj Shekhar

Will the Minister of FINANCE be pleased to state :-

(a) whether Government has implemented the 7th Central Pay Commission recommendations;

(b) if so, the details thereof along with the date of notification thereof;

(c) whether increase in pay of Central Government Officials is historically low under 7th CPC; if so, the reasons thereof;

(d) whether employees unions/trade unions have announced to go on indefinite strike against the historically low revision of salaries by Government, if so, the response of Government thereto; and

(e) whether uniform multiplication factor of at least 3 is proposed to be applied for revision of pay under 7th CPC; if not, the reasons therefor?

ANSWER

THE FINANCE MINISTER

(SHRI ARUN JAITLEY)

A statement is being laid on the Table of the House

Statement Annexed with the Rajya Sabha Starred Question No. 28 for 19.07.2016 by Shri Neeraj Shekhar on 7th Central Pay Commission Recommendations

(a) & (b): The Government has decided to implement the recommendations of the 7th Central Pay Commission relating to pay, pension and related issues. The requisite notifications are being issued shortly.

(c) The increase in pay as recommended by the 7th Central Pay commission is based on the detailed deliberations by the Commission keeping in view all relevant factors having a bearing upon the prevailing circumstances

.

(d) Employee Associations of Central Government had given a call for strike with effect from 11.07.2016 which has since been deferred. However, the Government is responsive to the concerns of the Employees’ Association and it would be the endeavour of the Government to ensure that the eventuality of a strike does not arise.

(e) In view of the multiplication factor having been accepted based on the recommendations of the 7th Central Pay commission, no such proposal is under consideration of the Government, at present.

Source:http://rajyasabha.nic.in/

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7th CPC Latest News – Central Government Employees set to get 14.27% Hike from August 1st on Basic Pay

7th CPC Latest News – Central Government Employees set to get 14.27% Hike from August 1st on Basic Pay

From August 1 Central Government employees will get 14.27 per cent hike in basic pay, not overall 23.5 per cent

The Central Government are also considering the demand made by employees union leaders to increase minimum wage from Rs 18,000 to Rs 26,000.

The much awaited hiked salary of Central Government employees will be credited to their official salary account by August 1, 2016, as the recommendations made by 7th Pay Commission was approved on June 29 by the central government. More than 47 lakh Central Government employees eagerly waiting for the hike will get 14.27 per cent hike in the basic pay and not 23.5 per cent.

The hike in allowance has been delayed by at least four months. For which the government has formed a high level committee headed by finance secretary Ashok Lavasa to re-examine the hike in HRA, NP, DA and many other allowances for the employees.

The salaries government employees would receive from August 1, on the basis of 7th pay commission recommendations would be hiked by 14.27 per cent, without any allowances. Which technically makes it a lowest ever salary hike implemented by any Pay Commission since independence.

On June 29, Central government had set up a high level committee to examine the anomalies in the 7CPC recommendations related to allowances. The committee will also consider the demand made by Central Government Employees Union leaders to increase minimum wage from Rs 18,000 to Rs 26,000.

The implementations of 7CPC which was done almost six months after Justice A K Mathur and his team submitted its findings and it will positively impact a total of 47 lakh central government employees, along with 53 lakh pensioners. The notification of the salary hike will be issued by the government by the end of this week.

However, a point to ponder here is, the gap between the salaries of low grade employees and top bureaucrats have made a large portion of beneficiaries unhappy with the 7th Pay Commission.

According to National Joint Council Action (NJCA), a confederation of 3.3 million central government employees, called the hike as discrimination against lower grade employees.

NJCA’s major objection is on the gap between lower paid employees and top officers.

The 1st pay commission had recommended pay of the top bureaucrats 41 times higher than the government employees at the bottom. But the subsequent pay commissions reduced the pay ratio. The last pay commission brought the pay ratio to 1:12 from 1:41. But the 7th pay commission increased the pay gap between the minimum and maximum from existing 1:12 to 1:13.8. And this pay gap has made lower rank employees aggrieved.

Source : india.com

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7th Central Pay Commission (CPC) – How it will Change Your Exact Salary - know Simply

7th Central Pay Commission (CPC)  – How it will Change Your Exact Salary - know Simply

7th Pay Commission: How it will change your exact salary-know simply

The Narendra Modi government on June 29 approved the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits.

It will come into effect from January 1, 2016.

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

The new scales of pay provide for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. Secretary, it would go up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary will be Rs 56,100.

Here we will show you how the 7th Pay Commission will change your exact salary keeping in mind the 4 main pay bands:

Existing Pay Band (5200-20200)

All numbers are in rupees

Basic pay = 5200

Grade pay = 1800

Total entry pay = 7000

Dearness allowance: 125% on Basic pay and Grade pay = 8750

Total salary = 7000+ 8750+ allowances = 16750 + allowances

New salary ( as per 7th Pay Commission) = 18000 + allowances

Net difference = 1250

Employees fall under this pay band: Security guard, Junior Attendant, Driver etc.

Existing Pay Band (9300-34800)

Basic pay = 9300

Grade pay = 4200

Total entry pay =13500

Dearness allowance: 125% on Basic pay and Grade pay = 16875

Total salary = 13500+ 16875 + allowances = 30375 + allowances

New salary ( as per 7th Pay Commission) = 35400 + allowances

Net difference = 5025

Employees fall under this pay band: TGT Teacher, Pharmacist, Senior Security Inspector, Junior Engineer etc.

Existing Pay Band (15600-39100)

Basic pay = 15600

Grade pay = 5400

Total entry pay = 21000

Dearness allowance: 125% on Basic pay and Grade pay = 26250

Total salary = 21000+ 26250 + allowances = 47250 + allowances

New salary ( as per 7th Pay Commission) = 56100 + allowances

Net difference = 8850

Employees fall under this pay band: Medical Officer, Manager, Scientific Officer, Assistant Professor, Engineer etc.

Existing Pay Band (37400-67000)

Basic pay = 37400

Grade pay = 8700

Total entry pay = 46100

Dearness allowance: 125% on Basic pay and Grade pay = 57625

Total salary = 46100 + 57625 + allowances = 103725 + allowances

New salary ( as per 7th Pay Commission) = 118500 + allowances

Net difference = 14775

Employees fall under this pay band: Associate Professor

Note: The decision regarding implementation of revised allowances is still pending and the employee will keep drawing the existing allowances for now.

Source : zeenews

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