The National Secretariat reviewed various agitational programmes independently organised by Confederation viz: Massive Parliament March on 15-12-2016, one day nationwide strike on 16-03-2017, Mass Dharna organised in front of Finance Minister’s Office on 23-05-2017, Human Chain of Central Govt. employees on 22-06-2017 and Burning of the HRA orders on 25-07-2017. It is reported by all National Secretariat members that the employees and pensioners had participated in large number in all the above programmes.

The Government has already implemented Revised Pay Scales, Revised Allowances and Revised Pension based on 5th CPC recommended parity formula for pre-2016 pensioners. The assurances given by Group of Ministers on 30-06-2016 regarding increase in Minimum Pay and Fitment formula still remains unimplemented. Govt. has not considered the demand to restore HRA rate to 30%, 20% and 10% and implement it from 01-01-2016. All revised allowances are implemented prospectively from 01-07-2017 thereby denying arrears from 01-01-2016. The Option-I parity for pensioners recommended by 7th CPC is rejected by the Government, instead 5th CPC recommended parity is extended to all pre-2016 pensioners. The “very good” bench mark condition imposed for grant of MACP is not yet modified. Even though NPS Committee constituted by Govt. for streamlining NPS has submitted its report to Government, its recommendations are still not made public. The demand for withdrawal of Contributory Pension Scheme and guaranteeing minimum pension (50% of the last pay drawn) is still pending. All other demands raised in the confederation and NJCA charter of demands are also remaining unsettled.

Unfortunately, inspite of the totally negative attitude and non-honouring of the assurance given to NJCA by the BJP-led NDA Government, the dominant leadership of NJCA is not in favour of reviving the deferred indefinite strike and no serious agitational programmes was organised after 6th July 2016 (i.e. after deferring the strike) under the united banner of NJCA, which compelled the Confederation to demarcate and organise independent struggle programmes as mentioned above including one day nation-wide strike.

The National Secretariat meeting took note of the above situation and decided to request once again the Railway Federations which are leading the NJCA as Chairman (NFIR) and Convenor (AIRF) to chalk out serious agitational programmes including strike under the banner of NJCA. Confederation National Secretariat strongly felt that to make the Govt. to honour its assurance on Minimum Pay and Fitment formula, to grant enhanced rate of HRA from 01-01-2016, to get Option-I parity implemented for pre-2016 pensioners, to modify the retrograde bench mark condition for MACP, to scrap NPS and ensure guaranteed minimum pension, to settle the justified demands of Gramin Dak Sevaks and Casual, Contract Workers, a united indefinite strike under the banner of NJCA (Railway, Defence & Confederation) is the need of the hour.

In the absence of a united struggle under the banner of NJCA, the Confederation National Secretariat decided to organise the following agitational programmes in a phased manner.

1. Mass dharna at all District headquarters demanding settlement of modified charter of demands of Confederation on 19th September 2017 (Tuesday).

2. Mass dharna at all state capitals on 17th October, 2017 (Tuesday).

3. Three days massive relay dharna in front of Parliament from 9th November to 11th November 2017 along with Central Trade Unions.

4. Indefinite strike in 2018 jointly along with Central Trade Unions. (Date will be finalised by the Central Trade Unions and independent Federations including Confederation).

All affiliated organisations and COCs are requested to make the above programmes a grand success. As the NDA Government is aggressively implementing the neo-liberal policies in all sectors, it is our responsibility to join hands with the entire trade unions and unitedly resist the onslaught. If the Govt. is not ready to change its destructive policies, the workers have no option but to embark upon a prolonged struggle jointly with the suffering common people of our country, to change the Government. It is in this background Confederation National Secretariat decided to join with the 3 days mass dharna at New Delhi and indefinite strike. In the meantime, if NJCA meets and take decisions for any agitational programmes, confederation shall implement the programmes of NJCA also. Modified charter of demands of the Confederation is also enclosed herewith.

3.2017 June 10th National Convention of Central and State Govt. Employees (Confederation and All India State Government Employees Federation) on “NPS & Outsourcing” – Review and implementation of the decisions taken by the National Convention.

The National Secretariat decided to implement the following decisions of the 2017 June 10th National Convention on “NPS & Out sourcing” jointly organised by Confederation and AISGEF. Confederation C-O-Cs should contact the AISGEF leaders of their respective states and chalk out detailed plan for implementing the decisions. Large scale participation of employees on behalf of Confederation should be ensured in all the programmes:

1.State level joint conventions by 31-08-2017 (date may be extended if required).

2.District /Taluk level joint conventions before 31-10-2017.

3.Mass Joint dharna at all important Centres including State Capitals on 21-11-2017 (21st November 2917 Tuesday).

4.Raj Bhavan March (Date will be finalised later).

5.Nationwide campaign Jatthas covering all states. (Dates to be finalised later)

6.Massive Parliament March (date to be finalised later).

4. (a) WFTU-TUI meeting at Kolkata on 2017 October 9th & 10th and (b) Asia Pacific Regional meet and World Secretariat meeting of Trade Union International (TUI) Public Services at Thiruvananthapuram on 2017 September 11th & 12th.

(a) Meeting of a team of WFTU Secretariat led by Com. George Mavrikos, General Secretary and all TUIs (Trade Union Internationals) Presidents/General Secretaries will be held at Kolkatta on 2017 October 9th & 10th .

(b) Asia-Pacific Regional meet and World Secretariat meeting of TUI (Public Services) will be held at Thiruvananthapuram on 2017 September 11th (TUI meet) and September 12th (Secretariat meeting).

The Total expenditure for the above two meet is to be borne by the organisations which are affiliated to WFTU- TUIs from India. Confederation’s share amount is fixed as Rs.300000/- (3 Lakhs). After detailed discussion the National Secretariat decided that each affiliates of the confederation shall donate share amount as shown below.

The above amount should be remitted to the Confederation Financial Secretary before 31-08-2017.

Bank Account details of Confederation CHQ are furnished below.

Bank Indian Overseas Bank, Gole Market Branch, New Delhi-01

Account Number – 084001000015586

IFS Code – IOBA0000840

5. National Convention of workers held on 8th August 2017 at New Delhi-Implementation of decisions.

All the Central Trade Unions and Independent Federations (other than BMS) had Organised a massive National convention of workers on 8th August 2017 at Talkatora Stadium New Delhi against the anti-Labour and anti-people polices of NDA Govt. Confederation being a part of this convention, National Secretariat meeting unanimously decided to implement the following programmes decided by the National convention of workers.

(a) To Work for achieving and accelerating united struggles in all sectors of the economy on respective demands, which has already begun.

(b) To organise Block/District/Industrial Centres/States level massive campaign mobilisation and convention in preperation to Central mobilisation to be followed.

(c) Massive three days dharna at National Capital on 9th, 10th, & 11th November 2017 to be attended by lakhs of workers from all over the country.

(d) To prepare for indefinite countrywide strike action against the anti-people, anti-worker and anti-national policies of the NDA Government.

The following Central Trade Unions have participated in the Convention in addition to independent federations of various sectors including Confederation.

INTUC, AITUC, HMS, CITU, AIUTUC, TUCC, SEWA, AICCTU, UTUC, LPF.

The National Secretariat decided that charter of demands adopted by the National convention of workers will be part-I charter of demands and confederation charter of demands will be part-II charter of demands for campaign and mobilisation of Central Government employees and also for the proposed indefinite strike.

6.All India Women’s Trade Union Workshop-2017

The National Secretariat decided to organise “All India Women’s Trade Union Workshop-2017” in the month of November/December 2017. C-O-C Maharashtra (Mumbai) is requested to discuss and inform their readiness to hold the workshop at Mumbai as there is larger concentration of women employees in Mumbai. In order to reduce the financial burden of the Reception Committee it is decided that delegate fee will be Rs.1000/- (Rs. One thousand only) per head. As the train reservation commences four months before, the decision of the C-O-C Mumbai should be communicated to the CHQ before 21-08-2017. On confirming the place only quota to each organisation and C-O-Cs etc. are to be fixed. The C-O-C Mumbai is requested to communicate their decision immediately.

7. Holding of a special convention/meeting of Autonomous body employees organisations and Autonomous body pensioners organistions.

The National Secretariat discussed the situation arising out of abnormal delay in revision of pay of Autonomous body employees and also non-issuing of orders for revision of pension of autonomous body pensioners by the concerned Autonomous bodies/Administrative Ministries. In the case of Autonomous body employees, eventhough the Finance Ministry has issued orders extending the 7th CPC pay scales to autonomous body employees on 13-01-2017, the orders are not implemented in 95% of the autonomous bodies due to the stringent conditions imposed by the Finance Ministry. In the case of Autonomous body pensioners, the stand taken by Finance Ministry and Pension Ministry is that they will not issue any orders for revision of pension or grant of Dearness Relief to Autonomous body pensioners. Earlier during 5th CPC and 6th also they have not issued any separate orders, Once Govt. issues orders for revision of pension and grant of dearness relief to Central Govt. Pensioners, it is upto the autonomous bodies to issue orders based on that orders, in consultation with their Administrative Ministries. But no Administrative Ministry has taken action for revision of pension and grant of dearness relief to Autonomous body pensioners. In short a serious crisis has developed regarding revision of pay scales of Autonomous body employees and Revision of Pension and grant of dearness relief to Autonomous body pensioners.

In the view of the above it is decided to convene a special meeting of all Autonomous body employees organisations and Autonomous body pensioners organisations to discuss and decide future course of action. Date and venue of the meeting will finalised shortly.

8. Problems of affiliated organisations of confederation.

Issues relating to the following departments are discussed and suitable decisions taken.

(1) Geological Survey of India

(2) Printing, Publications & stationary.

(3) Ground water Board.

(4) DAVP

(5) Civil Accounts

(6) Passport

Meeting Commenced at 11 AM and ended at 6 PM.

Fraternally yours,
M.KRISHNAN

Secretary General
Mob & WhatsApp : 09447068125
email: mkrishnan6854@gmail.com

CHARTER OF DEMANDS

1.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 rate of 30%, 20% and 10% with effect from 01-01-2016. Settle all anomalies arising out of implementation of 7th CPC recommendations, in a time bound manner.

2.Implement option-I recommended by 7th CPC regarding parity in pension of pre-2016 pensioners.

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

4.Treat GraminDakSewaks of Postal department as Civil Servants, and extend all benefits like pay, pension, allowances etc. of departmental employees to GDS.

5.Regularise all casual, contract, part-time, contingent and Daily rated mazdoors and grant equal pay and other benefits.

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-level 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 assess 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, hassle free 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.

20.Implementation of the Revised Pay structure in respect of employees and pensioners of autonomous bodies consequent on implementation of CCS (Revised Pay) Rules 2016 and Revised Pension Rules in respect of Central Government employees and pensioners.

21.Implementation of the “equal pay for equal work” judgment of the Supreme Court in all departments of the Central Government.

Source : Confederation

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Comrades.

Dr. Urjit R. Patel – Governor, Reserve Bank of India has said in a media conversation has made following observations in respect of Central Government employees which is published in Reserve Bank of India website:

1) The disbursement of salaries and arrears under the 7th Pay Commission award has not been disruptive to inflation outcomes.

2) The extension of two months given to the Ministry of Finance to receive the notification on higher allowances under the Commission’s award, could push its fuller effect into the next financial year rather than this financial year.

The above statement by the Governor, Reserve Bank of India clearly indicates the following:

A) The 7th CPC effect on the Government expenditure is minimal and doesn’t have any impact on the inflation and prices and there is scope for further improvement in fitment formula provided the Government is ready to consider the staff side demands.

B) The allowances will be revised only after February 2017 and come into effect in next financial year.

Only struggle is only the solution for the Central Government employees to get our main demands resolved such as revision of fitment formula and allowances.

Click here for RBI details

(P.S.Prasad)

General Secretary

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NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055

No. IV/NFIR/7CPC(IMP)/2016/R.B.

Dated: 16/11/2016

Shri Suresh Prabhu,
Hon’ble Minister for Railways,
Rail Mantralaya,
New Delhi

Respected Sir,

Sub: Charter of demands – Deferment of “Strike Action” on Government’s assurance-reg.

At the outset, NFIR conveys its thanks to the Hon’ble Railway Minister for his initiative which had culminated into a meeting with the Group of Ministers (Hon’ble Finance Minister, Home Minister, Railway Minister and the Minister of State for Railways) on 30th June 2016 and also a separate meeting with the Hon’ble Home Minister on 06th July 2016. Pursuant to the discussions in those meetings held between the NC/JCM (Staff Side) Leaders and the Hon’ble Ministers, an assurance was given by the Government on 6th July, 2016 that High Level Committee would consider 7th CPC issues – Minimum Wage and Multiplying Factor etc., for satisfactory settlement through discussions.

Federation is disappointed to mention that although a Committee headed by Addl. Secretary (Exp), Ministry of Finance, was constituted and a few meetings were held with us, there has been no satisfactory progress. The main issues – Minimum Wage and Multiplying Factors are continued unresolved. Due to procrastination of the matters, the Central Government employees in general and Railway employees in particular are seriously disappointed as they feel that the Government is not sincere to fulfill its assurances. The National Convention of NFIR held at Guwahati from 9th to 11th November, 2016 has expressed grave concern over non- fulfillment of assurance and decided to mobilize railway employees for sustained struggle.

NFIR, therefore, requests the Hon’ble MR to kindly apprise the disappointed feelings of the employees to the Hon’ble Prime Minister for his intervention to resolve the 7th CPC related issues – mainly improvement of Minimum Wage and Multiplying Factor through discussions with the Staff Side Federations very soon in order to preserve the healthy industrial relations in Railways.

Yours Sincerely,

sd/-
(Dr. M. Raghavaiah)
General Secretary

Source : NFIR

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Government’s assurance on 7th CPC issues mainly relating to Minimum Wage & Multiplying Factor – reg.

NFIR
National Federation of Indian Railwaymen
3, Chelmsford Road, New Dlehi – 110055

No.IV/NJCA(N)/20l4/Part II

Dated: 1.11.2016

Shri Narendra Modiji,
Hon’ble Prime Minister of India,
South Block,
Raisina Hill,
New Delhi-l10011

Respected Sir,
Sub: Government’s assurance on 7th CPC issues mainly relating to Minimum Wage & Multiplying Factor – reg.

I seek you valuable time through this letter and place the following for kind consideration and immediate action.

The Central Government employees in general and Railway employees in particular were extremely upset over the retrograde recommendations of 7th Central Pay Commission, particularly the recommendations relating to Minimum Wage and Multiplying Factor. In the wake of Indefinite Strike decision on Charter of demands of NC/JCM Constituent Organizations (Railways, Defence, Postal Confederation etc)., the Group of Ministers held meetings with JCM (Staff Side) leaders on 30th June 2016 & 06th July 2016 and consequently assurance was given that a High Level Committee will examine 7th CPC issues mainly Minimum Wage and Multiplying Factor. On this assurance, JCM Constituent organizations have deferred Strike action on 06th July, 2016.

Though a Committee was constituted under the chairmanship of Addl. Secretary (Exp), Ministry of Finance and discussions held, the response has been disappointing. The employees of Railways and other Central Government departments are greatly disappointed over non-settlement of main issues through discussions.

May I request your kind attention in the matter for implementation of assurance given by Group of Ministers for the revision of Minimum Wage & Multiplying Factor through discussions with NC/JCM (Staff Side) very early.

With Pranams,

Yours sincerely,
sd/-
(Dr. M.Raghavaiah)
General Secretary

Source: NFIR

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NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055

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

Dated: 02.09.2016

The General Secretaries of
Affiliated Unions of NFIR

Dear Brother,

Sub: Meeting of the Committee to examine the recommendations of 7th CPC regarding Allowances – September 1, 2016, North Block, New Delhi-reg.

The meeting of the Committee was held on 1st September, 2016 at Room No. 72, North Block, New Delhi under the Chairmanship of Finance Secretary and Secretary (Expr) to discuss on 7th CPC allowances. The JCM (Staff Side) Standing Committee Members have participated in the meeting. All the Standing Committee Members (Staff Side) expressed their serious disappointment over non-fulfillment of the assurance given by the Finance Ministry on 6th July 2016 for setting up High Level Committee to examine 7th CPC issues mainly – Minimum Wage and Multiplying Factor.

The Leader Staff Side & General Secretary, NFIR Shri M. Raghavaiah has explained to the Finance Secretary, the discussions held between JCM (Staff Side) Leaders & Senior Ministers namely S/Shri Rajnath Singh, Arun Jaitley, Suresh Prabhu and Shri Manoj Sinha on the night of 30th June, 2016 and subsequent meeting held on 6th July, 2016 with Union Home Minister. He further explained that an assurance was given to appoint a High Level Committee to examine the issues relating to Minimum Wage, Multiplying Factor and other allied issues and accordingly Finance Ministry had issued statement on the night of 06th July, 2016 that a High Level Committee will be constituted. Pursuant to this assurance, the Strike action was deferred by the NJCA/JCM (Staff Side). He conveyed that the non-fulfillment of assurance is causing disappointment among employees. He requested the Chairman of the meeting to take initiative for ensuring that the assurance given is fulfilled.

He also expressed disappointment over non-holding of National Council (JCM) meetings since the last six years, resulting accumulation of grievances.

On the “Allowances”, he urged upon the 7th Chairman to consider granting 30%, 20% & 10% of 7th CPC Pay, for the staff working in X, Y & Z Cities/Towns w.e.f. 01/01/2016. He also contended that the date of effect of the Allowances should be January 1, 2016.

Mr. Raghavaiah has also highlighted the 7th CPC aberrations on Transport Allowance and requested to take action for rectification. He said that Fixed Medical Allowance be revised upwardly. He invited the special attention of the Finance Secretary to Para 8.2.5 of the 7th CPC recommendation which is retrograde and needed to be rejected as the same would cause harm to staff. He cited the case of PCO Allowance, Special Allowance for announcing duties, Special Incentive allowance etc., admissible in railways which are required to be continued and hiked

President/NFIR Shri Guman Singh, Working President Shri R. P. Bhatnagar, Vice President Shri K.S. Murty also spoke and stressed upon the need to continue the existing Allowances like Break Down Allowance in Railways. They also expressed serious disappointment over non-revision of Minimum Wage and Multiplying Factor.

While there has been no commitment from the Chairman and Official Side of the Committee, the Finance Secretary however stated that further meetings will be held and in the meantime the JCM (Staff Side) may list out common issues and send the same to the Joint Secretary (Imp) and equally Departmental specified issues be sent through the respective Administrative Ministries for examination.

The above is for information of Affiliates.

Yours faithfully

sd/-
(Dr. M. Raghavaiah)
General Secretary

Source : NFIR

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No clarity in the Press Statements of both Government and NJCA on 7th CPC issues

The six days Drama was come to an end yesterday. After the Union Cabinet Approved the implementation of 7th CPC Recommendations on 29th June 2016, a Meeting of NJCA leaders held on the next day on 30th June 2016. After the NJCA Meeting, some Leaders met the Group of Ministers at Home Minister’s Residence. It is said to be an informal meeting, so no any official announcement was made by Govt regarding this Meeting. But NJCA leaders told that GOM assured that they would refer this issue to a committee to review.

The same day, SRMU has declared that the Indefinite Strike is postponed based on the Govt assurance. From that day onwards there was lot of drama going on day to day over the issues of 7th CPC and Indefinite Strike

As per schedule the NJCA Leaders met on 6th July 2016 to decide on future course of Action. But the meeting was ended with a decision to postpone the Strike Action.

Finally, the Six Days confusion come to an end on 6th July after NJCA and Ministry of Finance issued Press Statements.

But Still there is no Clarity in these press statements on the following issues.

1. When will Notification for implementation of 7th CPC recommendations be published?

2. When will the CG Employees get 7th CPC salary.?

3. Why all allowances including HRA and TA referred to committee?

4. When will the revised rate of HRA and TA come into effect?

5. Does the NJCA really believe the proposed committee will recommend to increase Minimum Pay and Fitment Factor…?

6. If they believe so, why didn’t they say anything about the date on which the 7th CPC come into force…?

7. If 7th CPC comes into force from this Month, Does the NJCA believe the Minimum Pay and Fitment factor will be increased after four months?

8. Do the Govt and NJCA assure No Committee will be formed after four months…?

The NJCA has to clarify all these doubts to Central Government employees. If you have any other doubts, please comment.

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The Staff side had demand of minimum wage of Rs 26000/- & fitment formula of 3.71. Against this the 7th CPC had recommended minimum wage of Rs 18000/- & fitment formula of 2.57. The 7th CPC recommendations has provided only at 14% wage hike at Group “C” level it is only ranging from Rs 2240/- to Rs 3500/- increase per month, and at Group “B” level ranging from Rs 4000/- to Rs 6500/- increase per month. This increase is lowest by any pay commission, hence vast changes are required as the prices of essential commodities have gone up and also the inflation rate has gone up.

There are various reports on 7th Central Pay commission on the media reports on minimum wage of Rs 21000/- & fitment formula of 3.00, (which is at 34% wage hike against the 14% wage hike recommended by the 7th CPC). These reports are totally wrong and not true, these reports divert the Central Government Employees from the struggle path. Now it’s clear from the meeting of the staff side leaders with the Cabinet Secretary that there will likely hood of the slight increase in minimum wage, but not be any changes in the fitment formula. This is against the Staff side demand of minimum wage of Rs 26000/- & fitment formula of 3.71.

Secondly there is no change in allowances expect HRA that too its rates are reduced by the 7th CPC and also many allowances have been withdrawn. This is saving for the Government.

Comrades it is the time to struggle, we should educate the members and prepare for struggle, so that we should get at least 50 % wage hike without allowances, as allowances are not taken into pension benefit.

Only struggle will get us benefit. Please don’t believe on rumours. Now it is now or never. Serve strike notice on 9th June 2016.

Source – http://karnatakacoc.blogspot.in

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Every ten years, the Central Government of India sets up a Central
Pay Commission (CPC) to revise the pay scales of its employees. Since these pay scales are largely adopted by state governments as well, they influence the income of millions of households.During 2013, time seemed to be running out for the constitution of
the next Commission before the beginning of the election cycle. But on September 25, 2013, a week before the election-related Code of Conduct became effective, the government set up the Seventh Central Pay Commission. This commission will review and revise the salary and pensions of 50 lakh (5 million) or more Central Government employees.
Now that it is constituted, the Commission will most likely be able to
implement its recommendations by the scheduled date of January 1, 2016.

Duties of the Seventh Central Pay Commission

On Feb 28, 2014, the Cabinet approved the terms of reference of the
7th CPC. The CPC is expected to suggest a merger of 50% of DA (daily allowance) with basic pay, which would increase the gross salary of Central Government employees by around 30%. The Cabinet has approved an additional 10% DA over the existing 90% admissible DA, effective January 1, 2014. This increase would be paid in cash after the disbursement of March salary. The 7th CPC is required to submit its recommendation within a year and a half of its date of constitution.

Major issues to be resolved

1. Pay Parity between IAS & other government services:
Hundreds of letters are sent by IAS officers to the concerned
government officials apprehending that the seventh central pay
commission may try to restore parity between different government
services in terms of compensation and career progression. It is to be
seen how 7th CPC and government deals with this crucial issue.

2. Pay parity with private sector: Central services have demanded to every pay commission to create parity with the officers of private sectors and make their salary structure comparable to later.

3. Retirement age: There is no denial of the fact that working efficiency of an employee is influenced by the increasing age but experience often weighs heavily over the age factor. Even then
looking at attitude of present government impression is clear that pay commission is signaled to reduce the retirement age of government employees. Whatever circumstantial indications are available it shows that either 33 years of service of 60 years of age (whichever is minimum) is likely to be recommended. If media reports have ant substance of truth, under performers may be asked to opt for voluntary retirement after reaching the age of 55 years.

4. Pay gaps between least & highest paid employees:
In 1947, gaps in salary between lowest and highest paid government
employee was in the 1:41 ratio that got reduced to 1:12 by subsequent pay commissions. It has to be observed whether this gap is widened or reduced by the 7th CPC.

5. Continuing with grade pay system? It would be interesting to note whether 7th CPC continue grade pay system or adopts old pay scale system. As per reliable sources, grade pay system will not longer exists in 7th CPC structure. A table is circulating in the media predicting projected pay scales believed to be suggested by 7th CPC.

What are the hottest rumors?

1. Central Government is willing to merge 50% DA with basic pay with effect from 1.1.2015 – All Government employees would be happy if it has happened,

2. Age of Retirement will be determined based on completion of 33
Years of service or at the age of 58/60/62/65 Years (depending on
existing retirement age in various departments) whichever is earlier.

Members of the Seventh Central Pay Commission

Chairman – Ashok Kumar Mathur (Former Supreme Court Justice and Former Chairman, Armed Forces Tribunal)

Full time member – Vivek Rae (oil secretary)

Part time member – Rathin Roy (Director, NIPFP)

Secretary – Meena Agarwal (OSD, Department of Expenditure)

Latest update

• Union Cabinet chaired by PM on August 26, 2015 gave its approval for extension to 7th CPC to submit its report by the end of December 2015.
• As per reports in media, 7th CPC is likely to maintain status Que on the retirement age. However, some unconfirmed sources didn’t rule out the possibility of a suggestion from Pay Commission to the government that the earliest of either 33 years of service length or 60 years of age may be considered as a criteria for superannuation of central government employees.
• Recommendation for pay hike is likely to be low after merging the existing basic pay and dearness allowances. Merging the both component mean 155% rise and adding 25-35% extra makes it 1.8 to 1.9 times in terms of basic to basic.
• Grade Pay is likely to be abolished by 7th CPC and gaps between pay scales may widen and hence 7th CPC scale may some what follow the earlier pay formats (as in 3rd, 4th or 5th CPC)
• Government may not risk any adverse effect of disclosures related to pay recommendations on election prospects in upcoming Bihar elections.

Implementation Dates of Previous Pay Commission Recommendations

January 1, 1986 – 4th Pay Commission

January 1, 1996 – 5th Pay Commission

January 1, 2006 – 6th Pay Commission

The Pay Commission Process

Implementation of a Pay Commission’s recommendations always leaves behind a few anomalies for the next commission to resolve. Making recommendations for pay revision is a long process, involving discussion with various organizations, submission of demands by representatives of unions and associations, and evaluating the potential financial impact of these demands on the national exchequer. Representatives of various organizations are asked to make presentations. The Pay Commission
examines service conditions, pay, and perks given to employees.

All the earlier Commissions set up to revise the pay of Indian
Central Government employees—except the 6th CPC—took more than three years to submit their report. The Sixth Pay Commission submitted its report within just eight months. Nevertheless, such a quick turnaround cannot be taken for granted for future Pay Commissions, since the timing of report submission and the nature of the recommendations are influenced by political and economic considerations.

Rationale for the Seventh Pay Commission

The constitution of the Seventh Pay Commission is justified for the reasons listed below.

• Daily Allowance (DA) has already exceeded 100% of basic pay, and it cannot be merged with basic pay due to the recommendations of the 6th CPC.
• Since the wages of some categories of non-government employees are revised at intervals of less than ten years, wages should be revised every five years for central government employees also.
• Prompt pay revision of Central Government employees will help reduce the increasing disparities between Central Government employees, public sector employees, bankers, and private sector employees.How much increase in salary is expected after 7th CPC implementation

Other expected tasks for the 7th Pay Commission include resolving
anomalies created by the 6th CPC and addressing bonuses and problems related to the new pension program. All sections of employees will get an opportunity to present pay-related problems to the new Pay Commission and request redress of their grievances.

A new demand gaining support is constitution of a National Pay Panel that will make recommendations for all employees of the country. Since most of the states have adopted for their own employees the pay structure suggested by the 6th CPC for Central Government employees, uniform recommendations would remove discrimination between state and central employees. Recommending a uniform wage structure for each and every employee of India would also reduce pay disparities between private, public and autonomous organizations.

My poll indicates that 39% believe that Central Government employees are likely to get a threefold raise in salary. This is consistent with what was done in the past by earlier pay commissions. Given the existing trend in DA increase, salary may increase 2.3 times by the implementation date of the 7th CPC. Projected pay scales under this assumption are shown below.

Projected Pay Scales (After Implementation of the 7th CPC)

A projection based on media report is reproduced below. However, a
fake report in the name of 7th CPC is also being circulated in the media by some miscreants. 7th CPC has been granted extension by the Government of India to submit it report by the end of December 2015. It would be clear after the submission of report by 7th CPC what content it has submitted to the ministry for acceptance. Further, each and every point in the report will be examined by the cabinet and approved after considering all the implications. Till then enjoy and go through the speculations made by experts.

7th CPC as per some media reports has eliminated grade pay system and recommended pay scales similar to earlier pay commissions.

A better way to get rid of corruption in public life than across-the-board increases would be to legalize a commission on services
by each and every employee. This would also help improve the
productivity of private sector employees. In some private or autonomous banking institutions, for example, employees are paid a reasonable percentage for accomplishments such as encouraging customers to open more accounts.

Wage revision is expected for Central Government employees effective January 1, 2016. The newly constituted Pay Commission will get two years to review the existing wage structure and suggest a new one, to meet the expectation of employees, and also to increase efficiency at work at a pace with the growth in the economy.

The Seventh Pay Commission needs to introduce more parity into the pay structure of various sectors. Employees in all departments have been vested with more responsibilities, but their pay structure still belongs to the British period. People serving in the police and armed forces have very low salaries although their duties have become enormously more challenging. Government should increase the compensation to its officers for any service-related casualty. Police forces working under adverse conditions and in remote areas must be paid high wages and good benefits so that more people join these organizations.

The new pension system implemented based on the  recommendations of the 6th CPC needs to be revisited and reviewed by the 7th CPC, since the adequacy of fund management depends on market forces and the capabilities of fund managers. The 7th Pay Commission needs to take some vigorous action, based on discussions with trade unions, to come out with a more amicable solution for the new pension scheme.

These are some of the things people genuinely expect from the government, but time will tell how much people get from the CPC.

Source: Hubpages.com

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