7th CPC Fitment and HRA – No Change Therein is Envisaged

In written reply to a question in Rajya Sabha on 11th December 2018 , Minister of State for Finance Shri P.Radhakrishnan said no change in 7th CPC Fitment Factor and House Rent Allowance.

Increase in Pay Fitment Factor and HRA

“The fitment factor for the purpose of fixation of pay in the revised pay structure based on the recommendations of the 7th Central Pay Commission is 2.57 which is uniformly applicable to all categories of employees. As the same is based on the specific and considered recommendations of the 7th Central Pay Commission, no change therein is envisaged.

The Government vide Resolution dated 6th July, 2017 decided that HRA shall be revised to 27%, 18% and 9% of Basic Pay in X, Y and Z cities when Dearness Allowance (DA) crosses 25% and further to 30%, 20% and 10% of Basic Pay in X,Y and Z cities when DA crosses 50%.”

Current Rates of House Rent Allowance for CG Employees

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What next for Central government employees?

There was a bitter disappointment in store for fifty lakh Central government employees and an equal number of retirees, who have been waiting for a hike in minimum pay and fitment factor beyond the 7th Pay Commission recommendations. There was lot of speculation that PM Narendra Modi may give some good news in his last Independence Day budget in this term as PM. Many believed that looking at good monsoon and positive economic factors, a positive announcement may come months before the general elections.

While PM Modi spoke about how Indian economy will be a powerhouse in next three decades, he didn’t have any news to offer for the government employees.

Minister of State for Finance P. Radhakrishnan earlier in Lok Sabha had said that the Prime Minister’s Narendra Modi government is not planning to give any hike in minimum basic salary beyond the recommendations of the seventh pay commission. However, the Haryana government approved pay scale recommendations of teaching and non-teachings staff at government universities, government universities and govt-aided colleges with effect from Jan 1,2016.

The Maha government also has announced a salary hike under 7th Pay Commission from January 2019 for 17 lakh state employees. . So obviously the Central government employees are also hoping for some positive news. It may be noted that the government at any time can announce such a decision, and it doesn’t need to be on a special day. It may come closer in the heels to the election.

It is to be noted though that in the hopes of minimum pay hike beyond the recommendations of the 7th CPC might get a blow from the Central Bank itself. Earlier this month, RBI decided to increase the policy repo rate by 25 basis points to 6.5%. The reverse repo rate has been hiked to 6.25%, the RBI announced after its three-day Monetary Policy Committee (MPC) meeting.

“RBI’s Monetary Policy Committee has decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.5% Consequently, the reverse repo rate under the LAF stands adjusted to 6.25% and marginal standing facility rate and Bank Rate to 6.75%,” the apex bank said in a statement.

RBI in its report mentioned that inflation rates have increased on account of implementation of 7th Pay Commission. The revised HRA structure came into place in July 2017 under the 7th Pay Commission.

Currently, the Central government employees are getting basic pay according to the fitment formula of 2.57 of the basic pay and if this big step is taken, it will come as a massive news for the Central government employees. Fitment factor is a figure used by 7th CPC with which the basic pay in 6th CPC regime (i.e Pay in Pay band + Grade pay) is multiplied in order to fix basic pay in revised pay structure (i.e 7th CPC). Fitment factor formulated by 7th CPC is 2.57.

There were talks about Modi raising the retirement age of central government employees. That also didn’t come through

Source: DNA India

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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA

UNSTARRED QUESTION NO-2273
ANSWERED ON-07.08.2018

Increase of fitment factor under 7th CPC

2273 . Shri Ravi Prakash Verma
Shri Neeraj Shekhar

(a) whether Government is contemplating to increase fitment factor from 2.57 to 3.68 under 7th CPC to all pay levels, as demanded by employees associations;

(b) if so, the details thereof and by when it would be announced; and

(c) if not, the reasons for betrayal from assurances given by Home Minister and Railway Minister etc. to employees associations in 2016?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI P. RADHAKRISHNAN)

(a) to (c): The Minimum Pay of Rs. 18,000 p.m. and Fitment Factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration.

Source: Rajya Sabha

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NJCA

Ref: Confdn/Genl/2016-19

Dated: 14.03.2018

To
1. Shri M. Raghavaiyya
Chairman,
National Joint Council of Action of JCM (NC) Staff Side organisations (NJCA) & General Secretary
National Federation of Indian Railwaymen
Leader Staff side NC (JCM)
3, Chelmsford Road, New Delhi – 110055

2. Shri Shiv Gopal Misra
Convenor, NJCA & General Secretary
All India Railwaymen’s Federation (AIRF) & Secretary, Staff side,
National Council (Staff Side) JCM
13- C, Ferozeshah Road, New Delhi – 110001

Dear Comrade,
As you may be aware the Govt. of India, Ministry of Finance, has given the following written reply in Parliament for a question asked to Minister of Finance, regarding our demand – “Increase in Minimum Pay and Fitment Formula”.

Reply given by Minister of state for Finance:

“The minimum pay of Rs.18000/- p.m. and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration”.

From the above it is crystal clear that Govt. has gone back from the assurance given on 30.06.2016 by Group of Ministers including Sri Rajnath Singh, Home Minister, Shri Arun Jaitley, Finance Minister and Shri Suresh Prabhan, then Railway Minister, that Minimum Pay and Fitment formula will be increased and for that purpose a High Level Committee will be appointed to submit report within four months.

Now that Govt. has gone back from its assurance, I on behalf of Confederation of Central Govt. Employees & Workers, which is a constituent organisation of NJCA, request you revive our deferred agitational programmes immediately and for that purpose, if necessary, an urgent meeting of the NJCA may be convened.

Awaiting response,

Yours fraternally,

(M. Krishnan)
Secretary General
Mob: 0944768125
Email: mkrishnan6854@gmail.com

Source: Confederation

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INCREASE IN MINIMUM PAY AND FITMENT FACTOR

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-1170

ANSWERED ON-06.03.2018

Increase in minimum pay and fitment factor

1170 . Shri Neeraj Shekhar

(a) whether Government is actively contemplating to increase minimum pay from Rs.18,000/- to Rs.21,000/- and fitment factor from 2.57 to 3, in view of resentment among Central Government employees over historically lowest increase in pay by 7th Central Pay Commission (CPC);

(b) if so, the details thereof and the date from which it would be implemented; and

(c ) if not, the reasons for the callous attitude of Government towards Government Employees?

ANSWER
MINISTER OF STATE FOR FINANCE ( SHRI P RADHAKRISHNAN )

(a), (b) & (c ): The minimum pay of Rs.18,000/- p.m. and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration.

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

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1. Settle the demands raised by NJCA regarding modifications of 7th CPC recommendations as submitted in the memorandum to Cabinet Secretary on 10th December 2015. (See Annexure-I). Honour the assurance given by the Group of Ministers to NJCA on 30th June 2016 and 6th July 2016, especially increase in minimum wage and fitment factor. Grant revised HRA at the existing percentage itself i.e. 30%, 20% and 10%. Accept the proposal of the staff side regarding Transport Allowance. Settle all anomalies arising out of implementation of 7th CPC recommendations, in a time bound manner.

2. Implement option-I recommended by 7th CPC and accepted by the Government regarding parity in pension of pre-2016 pensioners, without any further delay. Settle the pension related issues raised by NJCA against item 13 of its memorandum submitted to Cabinet Secretary on 10th December 2015. (See Annexure-I).

3. Scrap PFRDA Act and New Pension System (NPS) and grant pension and Family Pension to all Central Government employees recruited after 01.01.2004, under CCS (Pension) Rules 1972.

4. Treat Gramin Dak Sewaks of Postal department as Civil Servants, and extend all benefits like pay, pension, allowances etc. of departmental employees to GDS. Enhance bonus calculation ceiling of GDS also to 7000 from 01.04.2014.

5. Regularise all casual, contract, part-time, contingent and Daily rated mazdoors and grant equal pay and other benefits. Revise the wages as per 7th CPC minimum pay.

6. No Downsizing, Privatisation, outsourcing and contractorisation of Government functions.

7. Withdraw the arbitrary decision of the Government to enhance the bench mark for performance appraisal for promotion and financial upgradations under MACP from “GOOD” to VERY GOOD” and also decision to withhold annual increments in the case of those employees who are not able to meet the bench march either for MACP or for regular promotion within the first 20 years of service. Grant MACP pay fixation benefits on promotional hierarchy and not on pay-matrix hierarchy. Personnel promoted on the basis of examination should be treated as fresh entrants to the cadre for grant of MACP.

8. Withdraw the draconian FR 56 (J) and Rule 48 of CCs (Pension) Rules 1972 which is being misused as a short cut as purity measure to punish and victimize the employees.

9. Fill up all vacant posts including promotional posts in a time bound manner. Lift ban on creation of posts. Undertake cadre Review to access the requirement of employees and their cadre prospects. Modify recruitment rules of Group-‘C’ cadre and make recruitment on Reginal basis.

10. Remove 5% ceiling on compassionate appointments and grant appointment in all deserving cases.

11. Grant five promotions in the service carreer to all Central Govt. employees.

12. Abolish and upgrade all Lower Division Clerks to Upper Division Clerks.

13. Ensure parity in pay for all stenographers, Assistants, Ministerial Staff in subordinate offices and in all organized Accounts cadres with Central Secretariat staff by upgrading their pay scales. Grant pay scale of Drivers in Loksabha Secretariat to Drivers working in all other Central Government Departments.

14. Reject the stipulation of 7th CPC to reduce the salary to 80% for the second year of Child Care leave and retain the existing provision.

15. Introduce Productivity Linked bonus in all department and continue the existing bi-lateral agreement on PLB wherever it exists.

16. Ensure cashless medical treatment to all Central Government employees & Pensioners in all recognized Government and Private hospitals.

17. Revision of Overtime Allowance (OTA) and Night Duty Allowance (NDA) w.e.f 01.01.2016 based on 7th CPC pay scale.

18. Revision of wages of Central Government employees in every five years.

19. Revive JCM functioning at all levels. Grant recognition to the unions/Associations under CCS (RSA) Rules 1993 within a time frame to facilitate effective JCM functioning.

Source: http://confederationhq.blogspot.in

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 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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