FINANCE (CMPC) DEPARTMENT
Secretariat,
Chennai – 600 009.

Letter No.54867/CMPC/2017-1, dated: 30-10-2017

From
Thiru K.SHANMUGAM, I.A.S.,
Additional Chief Secretary to Government.

To
All Secretaries to Government.

Sir/Madam,

Sub: Recommendations of the Official Committee, 2017 on revision of pay and allowances and other related benefits – Admitting of salary – Instructions – Regarding.

Ref:

1. G.O.Ms.No.303, Finance (Pay Cell) Department, dated: 11-10-2017.
2. G.O.Ms.No.304, Finance (Pay Cell) Department, dated: 13-10-2017.
3. G.O.Ms.No.305, Finance (Pay Cell) Department, dated: 13-10-2017.
4. G.O.Ms.No.306, Finance (Pay Cell) Department, dated: 13-10-2017.

I am to invite your attention to the references cited.

2. Based on the recommendations of the Official Committee, 2017, orders have been issued in the Government Orders first to fourth cited granting revision of pay, special pay and allowances to the State Government employees and teachers including employees of local bodies. The pay revision has been given notional effect from 1st January 2016 with monetary benefit from 1st October 2017.

3. As per Rule 6(2) of the Tamil Nadu Revised Pay Rules, 2017 every employee shall have to exercise option to come over to the revised pay structure within 3 months from the date of coming into force of the above rules on a date advantageous to the employees concerned as classified under sub-rule (1) of the above Rules. Considering the time limit available for exercising option by the employees to switch over to the revised pay structure, the pay bills have been presented by the Drawing and Disbursing Officers in the old pay itself to avoid difficulty in drawing salary by the employees.

4. Based on the option exercised by the individual employees,

(i) In the case of non-self drawing employees, the Heads of Offices concerned shall fix the pay of such employees in the revised pay structure and send the orders to the Drawing and Disbursing Officers concerned for drawing salary in the new pay immediately;

(ii) Likewise in the case of self-drawing officers, the Pay and Accounts Officer in case of the city offices including Pay and Accounts Officer, Madurai and in respect of other officers in Districts, the Accountant General shall fix the pay of the Officers in the revised pay structure and issue necessary pay slips so as to enable the Officers concerned to present the bills and draw the salary in the new pay structure immediately.

5. The Drawing and Disbursing Officers concerned on getting the orders from the Heads of Offices / pay fixing authorities concerned shall draw and disburse monthly salaries in the new pay structure from the month of November 2017 along with arrears for the month of October 2017. They shall present salary bills accordingly for the month of November 2017 after claiming arrears for October 2017 before 20-11-2017.

6. The National Informatics Centre (NIC) is requested to update the software application for salary bills in accordance with the orders issued in the Government Orders cited to enable drawing of salary in revised pay structure from November 2017, after claiming the arrears for the month of October 2017 before 20-11-2017.

7. The Commissioner of Treasuries and Accounts is also requested to co-ordinate with the National Informatics Centre (NIC) to finalise the revised software application for presenting salary bills in the revised pay structure immediately.

8. All Head of Departments are therefore requested to issue necessary instructions to all their subordinate officers to adhere to the above instructions scrupulously.

Yours faithfully,

Sd/-
For Additional Chief Secretary to Government.

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An important point to note

Of and on it comes for discussions while salary of Central Govt employees gets revised at 10 years interval, Bank employees’ salary is being revised at 5 years interval. Let us analyse, as under, that despite salary revision at 5 years interval how salary of Bank officers is lagging behind during last 23 years duration in comparison to salary of Central Govt Officers Group- A at entry level onwards. Please also note that 7th Pay Commission has recommended that without waiting for next pay commission the salary should be revised based on the material given by Simla based Labour Bureau.

From the above table it is evident as under:

• From 11.1992 to 01.01.2016 the salary of Central Govt Group A officers has been increased by 1293.44% (56100-4026=52074/4026 X 100) at entry level.

• From 11.1992 to 01.01.2016 the salary of Bank officers has been increased by 708.81% (35701-4414=31287/4414 X 100) at entry level.

Moreover the 7th Pay Commission has recommended that there is no need for a commission once in 10 years. It has recommended that based on the Labour Bureau reports the increase can be done periodically.

Salary in Reserve Bank of India

• In case of RBI officers, the starting basic pay which was Rs 17100 has been increased to Rs 28150 and at entry They also get a local allowance of 5% of pay, family allowance of 4% of Pay, Grade allowance of Rs.6000 and a special allowance of Rs.6000(Rs 1625 for those who joined in 2016) which is eligible for DA. So their salary structure is much superior to other bank officers.

Source : banknewskumar.blogspot.in

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After the salary hike, as per the recommendations of the 7th Pay Commission was okayed for Bureau of Indian Standards, it is now the UPSC chairperson’s turn to get a massive three-fold hike in salary.

President Pranab Mukherjee on Wednesday cleared the proposal of salary hike of Union Public Service Commission (UPSC) chairperson as per the recommendations of the 7th Pay Commission. After President’s approval, UPSC chairman shall receive a pay of Rs 2,50,000 and each of the other members shall receive a pay of Rs 2,25,000 per mensem under the 7th Pay Commission.

Before the implementation of the 7th Pay Commission, chairman and members of the UPSC, a constitutional body that conducts the prestigious civil services examination, used to get a monthly salary of Rs 90,000.

“The hike in salary was necessitated due to implementation of the 7th Pay Commission (7CPC) recommendation that has resulted in increase of salaries of all Central government employees,” a senior government official said. “The salary of UPSC chief will now be that of Cabinet Secretary and members’ monthly remuneration will be that drawn by a secretary-level officer,” he said.

The 7th Pay Commission had recommended a 14 per cent hike in salary to government officials, which has been accepted by the government. As per the 7th Pay Commission recommendations, the minimum salary of a central government employees has been increased from the current Rs 7,000 per month to Rs 18,000 per month. The salary of cabinet secretaries has been increased up to a minimum of Rs 2.5 lakh per month against the current salary of Rs 90,000. The gratuity ceiling has been increased from Rs 10 lakh to Rs 20 lakh.

The chairperson and members will also be entitled for travel allowance, medical facilities, Leave Travel Concession, conveyance allowance and such other conditions of service as are for the time-being applicable to equivalent pay in the Central government, the norms said.

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7th Pay Commission recommended for bunching of two stages in the report para 5.1.36 , “however if situation does arise whenever more than two stages are bunched together, one additional increment equal to 3 percent may be given for every two stages bunched, and pay fixed in the subsequent cell in the pay matrix.”

Also Government released order on7th September 2016, with the following instructions

1. One additional increment shall be given for every two stages bunched and the pay of Government servant drawing higher pay in pre-revised structure shall be fixed at the next vertical Cell in the applicable Level

2. Pay drawn by two Government servants in a given Pay Band and Grade Pay or scale where the higher pay is at least 3% more than the lower pay shall constitute two stages. Officers drawing pay where the difference is less than 3% shall not be entitled for this benefit.

Illustration:

if two persons drawing pay of 53,000 and 54,590 in the GP 10,000 are to be fitted in the new Pay Matrix, the person drawing pay of 53,000 on multiplication by a factor of 2.57 will expect a pay corresponding to 1,36,210 and the person drawing pay of 54,590 on multiplication by a factor of 2.57 will expect a pay corresponding to 1,40,296. Revised pay of both should ideally be fixed in the first cell of Level 14 in the pay of 1, 44,200 but to avoid bunching the person drawing pay of 54,590 will get fixed in second cell of Level 14 in the pay of 1,48,500.

Based on this we have calculated bunching benefit for all the grade pay in 7th CPC salary

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7th Pay Commission – Clarification regarding salaries to be paid

A.I.R.F.

All India Railwaymen’s Federation

No.AIRF/405(VII CPC)

Dated: July 13, 2016

The General Secretaries,
All Affiliated Unions,

Dear Comrades!

In continuation of our earlier letter of even number dated 8th July, 2016, wherein clarification was issued, whether payment of salaries based on 7th CPC recommendations will be made from current month or otherwise, it is hereby clarified that; salary of August month will be based on 7th CPC recommendations.

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New Delhi: Very soon fresh hike in salaries will be visible due to implementation of recommendations made by the 7th Pay Commission to the government. However, it’s highly recommended that the additional money you receive is invested wisely. You should not indulge in impulsive purchases and ensure the money is used to meet your long-term financial goals. So, the money should be utilized judiciously.

Here are key things you should avoid doing with the additional money:

1) Don’t purchase additional vehicle, house

It’s advisable that you must not go for a fresh purchase of vehicle when the current one is already serving your purpose and you have other important financial goals to meet. Value of vehicle only depreciates with time and hence, doesn’t qualify as a very good choice.

What for are you purchasing a new house, if you already have a good enough residential area to live in? In case you are planning to rent a house, idea is not bad, but not best even. If you are a wise man, you will always go for a loan in addition to an amount you already have so as to observe tax benefits. However, on rough calculation, rent will only provide you yield of 2 percent against the loan cost of about 10 percent in addition to the processing fees. Also, there is no guarantee, the area that you want to rent finds a tenant as soon as you want. Same is true in the case you wan to sell the apartment considering weak realty market.

2) No need for additional foreign holiday

No logic justifies spend on additional foreign holiday in place of important financial investments. Although, you can avail tax relief on vacations in India, twice in four years, it’s not a good idea by any means.

3) Avoid unnecessary shopping

This is the common ailment that almost every Indian suffers from. When on shopping spree, we generally forget, when to start and where to stop.

4) Be judicious in gold purchase

Financial advisors always advise to only buy gold as safe haven. If you have better investment options in front of you such as tax-free bonds, ETFs and mutual funds, avoid purchase of the bullion as the returns are much less here.

5) No need for prepayment of home loans

It’s always advised that you should not prepay home loan since it provides tax benefits that actually make the loan cheap. You better pay your outstanding loans in form of credit card balances and others.

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New Delhi: 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 of 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 covered: Security guard, junior attendant, senior laboratory assistant, overseer

Existing Pay Band (9300-34800)

Basic pay = 9300

Grade pay = 4200

Total entry pay =13500

Dearness allowance of 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: TGT/PGT teacher, pharmacist, senior security inspector, senior superintendent

Existing Pay Band (15600-39100)

Basic pay = 15600

Grade pay = 5400

Total entry pay = 21000

Dearness allowance of 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 covered: Medical officer, Assistant registrar, manager, scientific officer, assistant professor, engineer

Existing Pay Band (37400-67000)

Basic pay = 37400

Grade pay = 8700

Total entry pay = 46100

Dearness allowance of 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 covered: Professor, director, associate professors

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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New Delhi: The meeting of the Empowered Group of Secretaries reviewing the 7th Pay Commission, to finalize the payout to the central government employees did not take place as scheduled earlier on Saturday.

The office of the Cabinet Secretary confirmed that the meeting did not take place on Saturday. It did not reveal either when would the secretaries panel meet again to give the final shape to the salaries of central government employees.

“The meeting is expected to take place on Tuesday, June 14”, said V.P. Mishra, President, Indian Public Service Employment Federation. “When we met the Cabinet Secretary PK Sinha on June 3, he told us that we would be meeting on June 14”, added Mishra confirming that the 7th Pay Commission report is said to be finalised soon.

The AK Mathur led 7th pay panel report, which was released in November, had raised the minimum pay of central government employees to Rs 18,000 per month from currently drawn Rs 7,000, while the maximum pay recommended was Rs 2.5 lakh per month from Rs 90,000.

The employees unions decried the wage revisions suggested by the Commission as the “the lowest in the post independent history of the country”, and said a “meager rise of 14% alone was recommended by the Commission to be effective for a long period of ten years.”

The Empowered Committee of Secretaries, which was set up in January to review the 7th Pay Commission’s recommendations, is expected to meet on Tuesday and is expected to finally decide how the monthly package of central government employees will shape up.

“We have give our recommendations, and the Cabinet Secretary told us that we are looking into these”, added Mishra.

“It (Empowered Committee of Secretaries) is a divided house, but good number of people agree that what we are saying has a point”, said KKN Kutty, President, Confederation of Central Government Employees & Workers.

The Confederation is demanding the minimum salary of Rs 26,000 per month. ” The Staff side had computed the minimum wage as on 1.1.2014 at Rs. 26,000, The rates were taken on the basis of the actual retail prices in the market as on 1.1.2014 (average prices of 8 Cities in the country) substantiated by the documentary evidence of Cash bill obtained from the concerned vendors. As on 1.12016, the minimum wage work out to Rs. 29339, rounded off to Rs. 30,000″, said the Confederation in its Charter of demand.

It has done everything possible to get the maximum payout under 7th Pay Commission. The Confederation has decided to go on strike from July 11, if its charter of demand are not met by the government, and has already given the strike notice to the Cabinet Secretary.

There are nearly 47 lakh employees and over 50 lakh pensioners in India on central government payrolls currently.

The Empowered Committee of Secretaries was set up in January has and involved all the stake holders involved–central government unions, departments, ministries and all other – and will complete deliberations in todays meeting and decide the final monthly payout.

Source: zeenews.india.com

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7th Pay Commission payout, here’s when you may begin to get the money

The long wait of central government employees for the 7th Pay Commission payout may end soon with the government working on the possibility of starting to credit their accounts as per the proposed new pay scales from August 1, 2016.

The long wait of central government employees for the 7th Pay Commission payout may end soon with the government working on the possibility of starting to credit their accounts as per the proposed new pay scales from August 1, 2016.

“Central government employees could get the revised pay-scales with their July salaries that would be credited on August 1,” sources close to officials working on the implementation of the 7th Pay Commission report told FeMoney.

However, while there are indications that arrears would also be credited along with revised pay, it is not clear whether the past dues according to the Commission’s report would be given at one go or in instalments.

The exact position is likely to be clear after the meeting of the 7th Pay Commission committee, headed by Cabinet Secretary P K Sinha, on June 11 to decide the final contours of the payout plan.

The 7th Pay Commission recommendation, which will come into effect with retrospective effect from January 1, 2016, will result in higher pay package of 47 lakh central government employees and 53 lakh pensioners.

The Commission has recommended a 23.55 per cent hike in pay and allowance. While pay will go up by 16 per cent, increase in allowance will be 63 per cent and increase in pension 24 per cent.

According to reports, the Empowered Committee of Secretaries under Cabinet Secretary Sinha has recommended a wage hike of Rs 21,000 and Rs 2.7 lakh for the lower and upper level, respectively. This works out to Rs 3,000 more at the lower end and Rs 20,000 more for the upper level than what the 7th Pay Commission prescribed.

The impact the 7th Pay Commission recommendations will be to the tune of Rs 1.02 lakh crore on the government’s exchequer, with the break-up being Rs 73,650 crore on the Union Budget and Rs 28,450 crore on the Railway Budget.

Source : http://www.financialexpress.com/

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“The cabinet will give its nod to implement the 7th Pay Commission award in April after some modification and it will be effective from January 1, 2016,” the sources added.

After receiving the 7th Pay Commission report on November 19, the government had formed the implementation cell of the pay commission headed by ar Joint Secretary in Finance Ministry on November 20 last year.

With an eye on implementation of Pay Commission award, the government will not hike the dearness allowance (DA) to 1119% from existing 125%. The DA hike will be merged with the new pay as the Pay Commission made report, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the pay commission recommendation, i.e. on January 1.

Hence, the government has bound to implement the 7th Pay Commission award in April, they confirmed.

The notification to put into effect the Seventh pay commission recommendation will be issued in April before the announcement of West Bengal, Assam, Kerala and Tamil Nadu states assemblies’ election in May 2016, which will benefit 50 lakh central government employees and 52 lakh pensioners including dependents, sources of Finance Ministry said Wednesday.

“The BJP led central government decided execution time of the pay commission’s award in April, which will also be possible pre-election “special packages” for West Bengal, Assam, Kerala and Tamil Nadu to win sufficient seats of states Assemblies polls, sources told our reporters.

The 7th Pay Commission was set up by the UPA government in February 2014, The Commission headed by Justice A K Mathur submitted its 900-page final report to Finance Minister Arun Jaitley on February 19, recommending 23.55 per cent hike in salaries and allowances of Central government employees and pensioners.

The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

The 7th pay commission recommended fixing the highest basic salary at Rs 250,000 and the lowest at Rs 18,000and its increased the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8

The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and pensioners, often these are adopted by states after some modifications. However, the 7th Pay Commission suggested to discontinue the practice of appointing pay commissions in future.

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