7th CPC Latest News: Cabinet proposal soon to constitute 7th Pay Commission

   The central government is likely to constitute the 7th Pay Commission for revising the salaries of its over 50 lakh employees before the start of process of next general elections due in May, 2014.

   “The Finance Ministry is working out a Cabinet proposal for constitution of the 7th Pay Commission which could be taken up for consideration in the next couple of weeks,” a source said.

   According to information available, the government’s intention to constitute 7th Pay Commission before going for polls is clear as it has made provision of Rs. 3.5 crore in the second supplementary demands for grants in this regard which was approved by Parliament in the just concluded Winter Session.

   Earlier in September this year, Finance Minister P. Chidambaram had announced that Prime Minister Manmohan Singh has approved setting up of the 7th Pay Commission.

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TERMS OF REFERENCE OF 7th CPC

INDWF/Circular/010/2013

Date : 09.12.2013

To
Affiliated Unions of INDWF

Sub: Terms of Reference of 7th CPC

Dear Colleagues,
   Hon’ble Union Finance Minister made an announcement on 25th September, 2013 for constituting 7th Central Pay Commission; the Government has invited the leaders of the Federations (JCM National Council) for a meeting on 24.10.2013 to discuss the probable terms of reference of 7th Central Pay Commission.

   In the meeting held on October, 24, 2013 at North Block, Room No.190, Chaired by Secretary, DOP&T the Federation leaders pointed out the following issues needs to be considered and settled.

   Anomalies arisen consequent upon the implementations of VI CPC.

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Process to Constitute the 7th Central Pay Commission Along with Finalization of Its Terms of Reference

   Process to Constitute the 7th Central Pay Commission Along with Finalization of Its Terms of Reference, The Composition and Timeframe Initiated

   The Government has initiated the process to constitute the 7th Central Pay Commission along with finalization of its Terms of Reference, the composition and the possible timeframe for submission of its Report. The date of effect thereof will be known once the Report is available.

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Composition of the 7th Pay Commission

           Some Blogs have said that Shri. Raminder Singh Gujral ,IAS, the Finance Secretary , might be appointed as Member secretary of 7th Pay Commission. But the fact is he is retiring from the service on 30th November 2013. New Finance Secretary will be appointed after the approval of the Appointment Committee of the Cabinet. But the issue here is not regarding who will be the next Finance secretary. The issue is ‘can the retiring official be appointed as Member secretary to the 7th Pay Commission? . It is needed to mention that the previous pay commissions did not have retired bureaucrats as its Member secretary. The serving bureaucrats only appointed as Member Sectary of all the Pay commissions except the First Pay Commission.

The first pay Commission did not have a Member secretary. Its secretary was Shri. K.R.P.Aiyangar

The Member Secretaries of later Pay commissions were…

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7th Pay Commission Projected Pay Scale.

   People may think that the babus again started to make voice over pay revision and next pay commission or 7th Pay commission. There is a saying that “The crying baby gets the milk”. The need makes the man to act.

   One should try to understand the fact that being a government servant one can witness a considerable pay hike at least twice or thrice of his/her entire service period. Because, other than promotion, only the pay commission recommendation will give them considerable pay hike. But it takes place once in ten years. Now a days a government employee can render service 20 or 30 years only due to non availability of employment opportunity in government service below the age of 25. So there is no need to be get annoyed by hearing the voice for seventh pay commission from central government employees. Because constituting next pay commission is for nothing but to review the salary of the govt. servants with the current economical condition of the country.

   How the pay of a govt. employee had been fixed at the beginning of the Independence India.

   Till now there are six pay commission had been constituted to review and recommend pay structure of central government employees.

   All the six pay commissions have taken many aspects into consideration to prescribe the pay structure for government servants.

   In the first pay commission the concept of ‘living wage’ was adopted.

   In second pay commission it had been reiterated that the pay structure and working condition to be crafted in a way so as to ensure the effective functioning of government mechanism.

   The third pay commission adopted the concept of ‘need based wage’

   The Fourth CPC had recommended the government to constitute permanent machinery to undertake periodical review of pay and allowances of Central Government employees, but which got never implemented.

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VII CPC : Short Description about Sixth Pay Commission.

Before discuss about the VII pay commission let us see about sixth pay commission…

SIXTH PAY COMMISSION

   Initially the then government refused to set up sixth pay commission to review the pay and allowances of central government employees. The then finance minister told that there was no need to constitute next pay commission since 50 % dearness allowance was already merged with the basic pay. The employees had threatened to go on a nationwide strike if the government failed to set up 6th pay commission. In July 2006, the Cabinet approved setting up of the sixth pay commission. This commission has been set up under the Chairmanship of Justice B.N.Srikrishna with a timeframe of 18 months to submit the report. The cost of hikes in salaries is anticipated to be about Rs. 20,000 crore for a total of 3.5 million government employees. The commission submitted the Report to the Government on March, 24, 2008.

   The Sixth Pay Commission mainly focused on removing ambiguity in respect of various pay scales and mainly focused on reducing number of pay scales .It recommended for removal of Group-D cadre.

   The Fifth CPC had compressed many scales. The number of pay scales was reduced from 51 pay scales as on 31.12.1995 to 34 pay scales by the Fifth CPC. In many cases, this led to the promotion and feeder cadres being placed in an identical pay scale. Although Department of Expenditure issued orders that existence of the feeder and promotion posts in the same pay scale will not constitute an anomaly, however, these orders have consistently been rejected by the various courts of this country. The sixth pay Commission, therefore, decided to evolve a new system of pay scales that would effectively address most of the existing anomalies.

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7th Pay Commission : Fourth CPC pay scale and Fifth Pay commission.

It will be very use full to know all the pay commissions recommendations before getting into VII pay commission

FOURTH PAY COMMISSION
     The Fourth Pay Commission was constituted in June 1983 and its Chairman was Shri. P N Singhal. But the report of 4th CPC was submitted to government in three phases within the period of four years. There from it was started maintaining huge gap between lowest grade and highest grade as for as pay is concerned.

       There was a huge difference in basic pay between lowest grade and highest grade in IV pay commission pay scales. The basic pay of lowest grade was Rs.750, where as highest grade was Rs.9000. The pay of top most grade was 12 times higher than the pay of Group D employee. The Fourth CPC had recommended the government to constitute permanent machinery to undertake periodical review of pay and allowances of Central Government employees, but which got never implemented.

FIFTH PAY COMMISSION
      The Fifth Pay Commission was set up in 1994. The chairman of fifth pay commission was Justice S. Ratnavel Pandian. The commission gave its report in January 1997. Government accepted most of the recommendations and issued appropriate order in July 1997. The recommendations were implemented with effect from 1-1-1996. It recommended to reduce the number of pay scale from 51 to 34. It is noted that about 93% of the employees were in Group 3 and Group 4

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VII Pay Commission : First CPC to Third CPC Pay Scales.

   Now all the central government employees federations are demanding the govt. to set up seventh pay commission soon. So far six pay Commissions have been set up till date from 1946 by Government of India to review and recommend wage structure for all the central government employees including postal, railway, defence civilian employees and armed forces. All the matters pertaining to the government servants like Pay and Allowances ,promotion policy, retirement benefits, service condition also been thoroughly reviewed by these Pay commissions after every ten years and they submit recommendations to the government for the approval.

   At the advent of First Pay Commission, there was 1934 th year pay Scales were remained in effect. The pay scales prescribed by first pay commission replaced the 1934 pay Scales.

First Pay Commission

   The first pay commission was constituted in 1946 and the government appointed Srinivasa Varadacharia as Chairman of this commission. The first pay commission was based upon the idea of “living wages” to the employees, this idea was taken from the Islington Commission and the commission observed that “the test formulated by the Islington Commission is only to be liberally interpreted to suit the conditions of the present day and to be qualified by the condition that in no case should be a man’s pay be less than a living wage.The minimum basic pay for Class IV staff has been raised from Rs. 10/- to Rs. 30/- and for Class III from Rs. 35/- to Rs. 60/- per month. The Commission had fixed Rs. 55/- as minimum wage (Rs. 30 plus Rs. 25 as Dearness Allowance). The recommendations were accepted and implemented in 1946.

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