7thCPC Report – Detrimental to Central Government Employees – 5 Term MP says

7th CPC Report – Detrimental to Central Government Employees – 5 Term MP / MPLA observes in his blog – 7th Pay Commission’s Recommendations are not beneficial to low paid employees and tilted towards higher level officers

Mr.Ajay Maken, Former Union Minister from Congress Party and five term Member of Parliament and Legislative Assembly, observes that 7th Pay Commission Report provides meagre  benefits while comparing the salary increase recommended by previous Pay Commissions.

The Chairman of Seventh Central Pay Commission Justice Ashok Kumar Mathur has since presented voluminous recommendation consisting of 875 pages to Hon’ble Finance Minister. When we go through the recommendations it appears that it anti low paid employees and failed to improve their financial condition, short of suggesting measures for better and encouraging working conditions for them. It is tilted towards higher level officers.

2.​ The following important issues on which recommendations are made show the negative approach of the commission towards low level employees, which may be due to anti employee actions ofthe present Government. After independence seven Pay Commissions have been constituted all by Congress or Congress led Governments. NDA Government during the year 2003 was in power but refused to constitute 6th Pay Commission in spite of recommendation of 5th CPC to constitute 6th Pay Commission on 1st Jan, 2003 so that its recommendations could be implemented wef 1st Jan, 2006. This proves beyond doubt that the present BJP Government too is not serious to improve working condition and in financial upgradation of majority of employees. Brief details of main recommendations are:-

Fitment: For fixation of pay effective from 1st Jan, 2016, fitment factor of 2.57 has been proposed for application uniformly for all the employees. It includes a factorof 2.25 is on account of Dearness Allowance neutralisation, assuming that DA would be 125 percent at the time of implementation of the new scale out of 2.57 of fitment formula recommended. The hike will only be 14.29 percent.

The enhancement of pay by 14.29% is very depressing for the employees in past after submission of 5th and 6th Pay Commissions report the minimum hike given was 40%.

(A) It has been our consistent demand to reduce gap between the lowest paid and the highest paid employees from 1:12, recommended by 6th CPC to 1:8 but instead of reducing the gap it has been further increased by the 7th Pay Commission to 1 to 14.

(B) As per para 5.1.27 of the report, “it is proposed that fitment factor of 2.57 is being applied uniformly for all employees.” Whereas at Table 5 : Pay Matrix (Civilian Employees) for level 1 to 5 it is 2.57 and in respect of remaining higher levels except level 13 it ranges between 2.62 to 2.81. It proves that senior officers have been favoured by the Commission in fitment process.

(C) 6th Pay Commission had recommended annual Increment between 3 to 4% of Pay plus Grade Pay whereas Seventh Pay Commission has restricted it to 3% only.

(D) The 7th Pay Commission has proposed to withhold annual increments of those employees who are not able to meet the benchmark either for MACP or regular promotion within first 20 years of service, under the given condition an employee will be left with no option but to leave the job and seek retirement.

(E)Recommendation to withdraw some benefits which employees are already availing:

(i) In the name of parity in the rank of Assistants, between the field staff and headquarter staff grade pay of Rs 4,600 of Asstts of CSS has been placed in the new pay matrix in Level 6, the level corresponds to pre-revised GP of Rs 4200. Similarly the corresponding posts in the Stenographers cadre will also follow same parity and thus will be deprive of GP of 4600.

(ii) Non-functional selection scale with the GP of 4200 was granted to 30% Upper Division Clerks in CSS and Allied Offices, which is now being withdrawn at the cost of UDCs awaiting grant of NFSS.​

(iii) At present two additional increments are granted at the time of promotion to Under Secy/PPS in CSS/CSSS it is suggested to abolish the benefit.

(F) Recommendation to abolish Allowances, reduce percentage, de-link benefit of DA:

(i) The quantum of percentage based allowances has been reduced, the 6th CPC had doubled it whereas 7th Pay Commission has suggested rationalisation by a factor of 0.8 (para 8.2.3). This will reduce present percentage based allowance for example House Rent Allowance which is at present 30, 20 and 10% in respect of Class X, Y and Z category of cities will come down to 24, 16 and 8% .In the same pattern percentage of other allowances will also be reduced.

(ii) All non-interest bearing Advances viz Festival etc have been abolished.

(iii)Motor Car, Motor Cycle/Scooter/Moped advances have been abolished.

(iv) 52 Allowances presently available to employees will discontinue.

(v) Identities of 36 allowances have been abolished as separate and proposed to be subsumed with existing or newly introduced allowances.

(vi) Transport Allowance which is at present linked with DA, with release of every additional instalment of Dearness Allowance, TA is also proportionally increases, this will be done away.

(G)Rates of contribution by various levels of employees towards insurance coverage have been exorbitantly increased, the details are:

(H) Process of Cadre Review has been made very difficult.​​​​

​ In short Central Government Employees are frustrated and disappointed with the major recommendations of the Commission. It is unfortunate that the employees, who were given 40% hike in their respective pay has now been recommended only 14.29%. This is unjust and humiliating for the beneficiaries.

​We have decided to express our resentment and demand at least 40% hike in the pay of various categories of employees.

Source: Ajay Maken Blog