In Para 5.1.36 of its report, 7th Pay Commission had recommended that one additional increment will be given while fixing of every two stages of pre-revised basic pay (pay in pay band and Grade pay) or scale  in the same pay in the new pay matrix.  This recommendation has been accepted by Govt and an OM has been issued on 7th September 2016 to this effect.

Check the following link to read OM dated 7th September 2016 on Bunching benefits

The Govt has also defined now the meaning of “Stage” in the OM dated 7th September 2016.  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.

The illustration provided in 7th Pay Commission report for the purpose of granting Bunching Increment was relating to Entry Pay only in the the new Pay Matrix viz., As per Illustration provided in the report Employees in GP 10,000 who are fitted in to minimum of Level 14 of New Pay Matrix will be eligible for one additional increment and would be fitted in to next cell of Level 14.

However, as per the OM dated 7th September 2016, which has clearly defined the meaning of Stage as far as 6th CPC pay is concerned, the bunching benefit will also be applicable to fixation of 7th CPC pay for all the indices of new pay matrix in addition to entry pay.

7th Pay Commission Pay Fixation:

As per Para 5.1.28 of 7th Pay Commission Report, pay fixation in the new pay structure will have to be made as follows

Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’.

Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.

Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level

7th Pay Commission bunching Benefit:

In addition to above, 7th Pay Commission proposes bunching benefit in Para 5.1.36 whenever more than two stages are bunched together for fixation of pay in 7th CPC pay matrix, 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.

Further, Para 5.1.37 of the report provides an illustration for fixation of pay of two employees who are drawing pay of Rs.53,000 and Rs.54,590 in the GP 10000.

As per this illustration, after applying 7CPC multiplication factor of 2.57, both of these employees will have to be fixed in first cell of level 15 in the pay of Rs.1,44,200 as their revisesd pay are worked out to Rs.1,36,210 and Rs.1,40,296 respectively which are not more than the first cell of level 15 (Rs.1,44,200)

But to avoid bunching of these two stages of pay, the person drawing pay of Rs.54,590 will get fixed in second cell of level 15 in the pay of Rs.1,48,500, while the other who is drawing pay of Rs. 53,000 will have to be fixed in Rs.1,44,200.

Based on this illustration, a table containing Entry pay of Rs. 53,000 in GP 10000, subsequent stages for this pay (pay with increment of 3% for every year) and 7th Pay Commission pay fixation for the same has been prepared as below.

Applying same principles, we could find that next stage in entry pay in respect of Grade Pay 1800, 1900. 2000, PB-3-5400, 6600, 7600 and 8900 would be entitled to one additional increment as bunching benefit.

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of 10,000/- (Pay Band (Rs. 37400-67000)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 8900/- (Pay Band 4 – Rs. 37400 to 67000)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of of Rs 7600/- (Pay Band 3 – Rs. 15600 – 39100)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 6600/- (Pay Band 3 – Rs. 15600 – 39100)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 5400/- (Pay Band 3 – Rs. 15600 – 39100)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 2400/- (Pay Band 1 – Rs. 5200 – 20200)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 2000/- (Pay Band 1 – Rs. 5200 – 20200)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 1900/-

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 1800/-

7th Pay Commission Report submitted – Download Report

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7th Pay Commission review process by Empowered Committee of Secretaries – Changes / Revision expected by Central Government Employees in Minimum Pay, Fitment Formula, Annual Rate of Increment, MACP, House Rent Allowance, and Transport Allowance among others

Recommendations of Empowered Committee on 7th Pay Commission report can be expected from now onwards , as it is reported that the top bureaucrats appointed by govt for this purpose would wrap up their review process soon. It is still unclear whether staff side leaders would called for negotiations on the demands of NJCA for revising the 7th Pay Commission report in many areas.

NJCA, the joint body of major Staff Side Associations from Central Government Employees, Railway Employees, and Defence Civilian Employees met Empowered Committee four times recently and submitted Staff Side Demands such as revision of Minimum Pay, Fitment Formula, House Rent Allowance, Transport Allowance, Annual Rate of Increment, number of upgradations under MACP etc.

Based on these Staff Side Demands we have summarized here the Changes / Revision Expected by the Employees on the 7th Pay Commission Report, which have to be recommended by the Empowered Committee to Union Cabinet for its approval.

1. Minimum 7th Pay Commission Pay and Ratio between Minimum and Maximum Pay:

7th Pay Commission has proposed a basic pay of Rs. 18000 as minimum entry pay in Central Government Service (Pay of MTS). However, Staff Side JCM is of the view that as per approved methods such as Dr.Aykroyd Formula, minimum pay in Central Government Service should be Rs. 26,000.
2. Date of Effect and Fitment Formula:

Staff Side JCM had put forth before 7th Pay Commission that uniform fitment formula / multiplication factor of 3.7 to be applied while fixing the basic pay of existing employees.

With regard to Date of effect of 7th Pay Commission pay and allowances, members representing staff side submitted before 7th CPC that Central Government Employees are due for pay revision every ten years and that in order to rectify the delay in implementation of pay commission award in the past, the present pay commission award has to be given effect from 1st January 2014.

Contrary to Staff Side JCM’s suggestions, 7th Pay Commission has fixed the fitment formula / multiplication factor as 2.57. While mere merger of DA with existing pay in pay band and Grade pay would require a multiplication factor of 2.25, 7CPC proposed fitment formula / multiplication factor of 2.57 would result in increase in basic pay to an extent of 14.22% only.

Hence, convincing 7th CPC empowered committee for a higher multiplication factor / fitment formula would be the foremost concern of Staff Side JCM.

As far as date of effect of 7th Pay Commission award is concerned, the commission has not accepted the suggestion of Staff Side. It has observed that since the previous pay commission was given effect from 1st January 2006, the present pay commission award will have to be made effect only from 1st January 2016.

3. Annual Rate of Increment and Date of Increment:

Staff JCM in its memorandum before 7th Pay Commission suggested that since most of the PSUs including the banking industries provide the incremental rate at 5% and over a period of time it raised the salary level of the personnel, rate of annual increment for Central Government Employees will have to be fixed at 5%.

Further, uniform date of increment prescribed by the 6th CPC resulted in many anomalies, Staff Side JCM submitted that two specific dates as increment dates, Viz. 1st January and 1st July will have to be introduced. Those recruited/appointed/promoted during the period between 1st January and 30th June will have their increment date on 1st January and those recruited/appointed/promoted between 1st July and 31st December will have it on 1st July next year.

Also, staff side required that those who retire on 30th June or 31st December are granted one increment on the last day of their service, since they serve the entire one year of service required for an increment as on the date of retirement

Recommendation of 7th Pay Commission on the rate of increment:

In spite of valid argument of staff side for recommending annual increment rate of 5%, 7th Pay Commission has not made revision in annual increment and Promotional increment which have been recommended at the rate of 3% of basic pay.
4. Scrapping of NPS:

Staff Side JCM is of the view that New Pension system (NPS) has to be scrapped and all the employees who have joined in Govt Service on or after 01.01.2004, are to be brought to defined pension scheme.

However, 7th Pay Commission observed that the NPS will have to be continued; that Govt should frame necessary law / Policy for proper investment of NPS fund in Equity and that a strong grievance redressel will have to be formed to serve NPS employees.

5. Transport Allowance:

With regard to Transport Allowance, Staff Side JCM presented the demand that if at all Transport allowance is meant to defray transport charges then low paid employees ought to have been paid higher transport allowance then higher level officers as they only travel from long distances to reach office. Hence, it was suggested by Staff Side that uniform transport allowance be paid irrespective of level of the cadre

However, 7th Pay Commission has not modified the structure of Transport allowance on the basis of pay level. The existing DA on Transport Allowance has been proposed to be merged. The new rates of Transport Allowance suggested are as follows

6. MACP:

It has been demanded by Staff Side JCM that five hierarchical promotions to be granted under MACP. Presently only 3 financial upgradations either in the form of promotion or time bound financial upgradation to next grade pay are being ensured under MACP.

7th Pay Commission has not made any proposal for revising the number of upgradations under MACP which is three at present.

With regard to the benchmark for performance appraisal for MACP as well as for regular promotion, 7th Pay Commission has recommended that in the interest of improving performance level, the same has to be enhanced from ‘Good’ to ‘Very Good.’

7th Pay Commission has also noted that introduction of more stringent criteria such as clearing of departmental examinations or mandatory training before grant of MACP can also be considered by the government.

Withholding Annual Increments of Non-performers:

7th Pay Commission has proposed that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.

The Commission has proposed for withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.
7. House Building Advance:

Staff Side JCM had demanded for increasing the advance to 50 times of the Salary and fixing the rate of interest not more than 5%.

As per 7th Pay Commission’s recommendations, 34 times of Basic Pay OR Rs.25 lakh OR anticipated price of house, whichever is least can be availed as House Building Advance.

The requirement of minimum 10 years of continuous service to avail of HBA has been proposed to be reduced to 5 years.

If both spouses are government servants, 7CPC has proposed that HBA should be admissible to both separately. Existing employees who have already taken Home Loans from banks and other financial institutions would be allowed to migrate to this scheme, as recommended by 7CPC.
8. Children Education Allowance:

Suggestions of Staff Side:

Presently the allowance is admissible for two children, for studying in a recognised school up to XII standard. The maximum ceiling is stipulated at Rs.18000/- since this allowance had been hiked by 50% because of the DA component in salary having been crossed 100% on 1.1.2014. It is suggested that doubling of this allowance and increasing the same by 50 % whenever the DA crosses over by 50%

Further, it has been suggested that the CEA scheme may be extended to cover children studying for Graduate/Post Graduate and Professional courses.

7th Pay Commission’s recommendations on Children Education Allowance:

7th Pay Commission has not accepted the Staff Side’s demand that CEA to be applicable for children beyond class 12.

9. HRA:

House Rent Allowance suggested by Staff Side JCM

House Rent Allowance recommended by 7th Pay Commission

HRA when DA crosses 50%

HRA when crosses 100%

10. LTC:

Staff Side JCM demanded the following as far as Leave Travel Concession applicable to Central Government Employees is concerned

1. Permission for air journey for all categories of employees to and from NE Region.

2. Permission for personnel posted in NE Region for a journey within NE Region.

3. To increase the periodicity of the LTC once in two years.

4. Explore the possibility of allowing an employer to undertake tour outside India once in a service career in lieu of the LTC.

7th Pay Commission Report on LTC:

It could be found that suggestions of Staff Side JCM such as increasing the frequency of All India LTC, permission for air travel for all categories of employees in respect of NE Region etc., were not discussed in the report of 7th Pay Commission.

The proposal to split hometown LTC has been considered and it is recommended that splitting of hometown LTC should be allowed in case of employees posted in North East, Ladakh and Island territories of Andaman, Nicobar and Lakshadweep.

Also, it is observed by 7th Pay Commission that LTC to foreign countries is not in the ambit of this Commission.
11. Gratuity:

Suggestions of Staff Side JCM:

Staff Side JCM suggested that in respect of gratuity payable to employees ceiling of 16.5 times and the quantum limit of Rs. 10 lakhs should also be removed. It was pointed out that in the banking industry there is no such ceiling of 16.5 months  salary but the retiring bank employees are getting at the rate of ½ a month salary for every year of service even over and above 33 years of service. Hence, in respect of Central Government Employees also for a service span exceeding 33 years, the gratuity should be higher and the above ceiling be withdrawn.

7th Pay Commission’s recommendations on Gratuity:

It has been recommended by 7th Pay Commission that ceiling of gratuity is to be raised from the existing Rs.10 lakh to Rs.20 lakh from 01.01.2016. Further, as per Commission’s recommendations, Gratuity is to be partially indexed to Dearness Allowance. It is proposed that the ceiling on gratuity may increase by 25% whenever DA rises by 50 percent.

Source: gconnect

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Impact of 7th Pay Commission only 25K crore and not 100K crore – Confederation

Central Government Employees of Karnataka State has expressed its views that Government of India has to spend an additional Rs.25,000/- crores and not Rs.1,00,000/- crores as a result of implementation of 7th Pay Commission contrary to media reports. This will amount to 0.4 per cent of GDP.

Expenditure towards Salary of Central Government Employees on implementation of 7th Pay Commission will be around 25000 Cr and not Rs.1 lakh Crore as projected by media reports says Confederation

Confederation of Central Government Employees and Workers, Karnataka State has come up with a detailed report on actual expenditure involved out of 7th Pay Commission recommendations.

Comrades,

There are various reports in the media about the impact of the 7th Pay Commission recommendations on the common man and the government resources at large, the reports suggest that amount of Rs.one lakh crores of public money has been spent for implementation of the 7th Pay Commission recommendations for 35 lakhs central Government employees, Perhaps the strongest criticism of Pay Commission awards is that they play havoc with government finances and also state government demand support to implement the 7th Pay Commission recommendations. At the aggregate level, these concerns are somewhat exaggerated and which is totally wrong.

Let us examine the 7th Pay Commission report vide para no 3.65 and 3.66 and the website of Government of India Ministry of Finance Department of Expenditure Pay Research Unit for Brochure on Pay and Allowances of Central Government Civilian Employees visit website PayAllowance2013-14

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7th Pay Commission Report – Areas which require Revision / Modification by Empowered Committee as per Staff Side demands – Minimum Pay, Fitment Formula, Annual Rate of Increment, Date of Effect, Ratio between Minimum Pay and Maximum Pay, Fixation of Pay on Promotion etc.

After 7th Pay Commission formed in February 2014, staff side JCM consisting of members who are also office bearers of various staff organisations had submitted detailed memorandum to the Commission  and suggested the quantum of Minimum Pay, Fitment Formula, Annual Rate of Increment, Date of Effect, Ratio between Minimum Pay and Maximum Pay, Fixation of Pay on Promotion etc., for taking in consideration by 7th Pay Commission in its recommendations.

However, many of the demands of the staff side were not favourbly considered by the 7th Pay Commission in its recommendations.

Now, Staff Side have been impressing upon Empowered Committee, the need for rectification / modification / revision of many of retrograde recommendations of 7th Pay Commission

We provide here a brief of the areas with respect to which Staff Side members will have to demand for revision / modification of the recommendations of 7th Pay Commission.

1. Minimum 7th Pay Commission Pay and Ratio between Minimum and Maximum Pay:

7th Pay Commission has proposed a basic pay of Rs. 18000 as minimum entry pay in Central Government Service (Pay of MTS). However, Staff Side JCM is of the view that as per approved methods such as Dr.Aykroyd Formula, minimum pay in Central Government Service should be Rs. 26,000.

2. Date of Effect and Fitment Formula:

Staff Side JCM had put forth before 7th Pay Commission that uniform fitment formula / multiplication factor of 3.7 to be applied while fixing the basic pay of existing employees.

With regard to Date of effect of 7th Pay Commission pay and allowances, members representing staff side submitted before 7th CPC that Central Government Employees are due for pay revision every ten years and that in order to rectify the delay in implementation of pay commission award in the past, the present pay commission award has to be given effect from 1st January 2014.

Contrary to Staff Side JCM’s suggestions, 7th Pay Commission has fixed the fitment formula / multiplication factor as 2.57. While mere merger of DA with existing pay in pay band and Grade pay would require a multiplication factor of 2.25, 7CPC proposed fitment formula / multiplication factor of 2.57 would result in increase in basic pay to an extent of 14.22% only.

Hence, convincing 7th CPC empowered committee for a higher multiplication factor / fitment formula would be the foremost concern of Staff Side JCM.

As far as date of effect of 7th Pay Commission award is concerned, the commission has not accepted the suggestion of Staff Side. It has observed that since the previous pay commission was given effect from 1st January 2006, the present pay commission award will have to be made effect only from 1st January 2016.

3. Annual Rate of Increment and Date of Increment:

Staff JCM in its memorandum before 7th Pay Commission suggested that since most of the PSUs including the banking industries provide the incremental rate at 5% and over a period of time it raised the salary level of the personnel, rate of  annual increment for Central Government Employees will have to be fixed at 5%.

Further, uniform date of increment prescribed by the 6th CPC resulted in many anomalies, Staff Side JCM submitted that two specific dates as increment dates, Viz. 1st January and 1st July will have to be introduced.  Those recruited/appointed/promoted during the period between 1st January and 30th June will have their increment date on 1st January and those recruited/appointed/promoted between 1st  July and 31st  December will have it on 1st  July next year.

Also, staff side required that those who retire on 30th June or 31st December are granted one increment on the last day of their service, since they serve the entire one year of service required for an increment as on the date of retirement

Recommendation of 7th Pay Commission on the rate of increment:

In spite of valid argument of staff side for recommending annual increment rate of 5%, 7th Pay Commission has not made revision in annual increment and Promotional increment which have been recommended at the rate of 3% of basic pay.

4. Scrapping of NPS:

Staff Side JCM is of the view that New Pension system (NPS) has to be scrapped and all the employees who have joined in Govt Servic on or after 01.01.2004, are to be brought to defined pension scheme.

However, 7th Pay Commission observed that the NPS will have to be continued; that Govt should frame necessary law / Policy for proper investment of NPS fund in Equity and that a strong grievance redressel will have to be formed to serve NPS employees.

5. Transport Allowance:

With regard to Transport Allowance, Staff Side JCM presented the demand that if at all Transport allowance is meant to defray transport charges then low paid employees ought to have been paid higher transport allowance then higher level officers as they only travel from long distances to reach office. Hence, it was suggested by Staff Side that uniform transport allowance be paid irrespective of level of the cadre

However, 7th Pay Commission has not modified the structure of Transport allowance on the basis of pay level. The existing DA on Transport Allowance has been proposed to be merged. The new rates of Transport Allowance suggested are as follows:

6. MACP:

It has been demanded by Staff Side JCM that five hierarchical promotions to be granted under MACP. Presently only 3 financial upgradations either in the form of promotion or time bound financial upgradation to next grade pay are being ensured under MACP.

7th Pay Commission has not made any proposal for revising the number of upgradations under MACP which is three at present.

With regard to the benchmark for performance appraisal for MACP as well as for regular promotion, 7th Pay Commission has recommended that in the interest of improving performance level, the same has to be enhanced from ‘Good’ to ‘Very Good.’

7th Pay Commission has also noted that introduction of more stringent  criteria such as  clearing of departmental examinations or mandatory training before grant of MACP can also be considered by the government.

Withholding Annual Increments of Non-performers:

7th Pay Commission has proposed that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.

The Commission has proposed for withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.

7. House Building Advance:

Staff Side JCM had demanded for increasing the advance to 50 times of the Salary and fixing the rate of interest not more than 5%.

As per 7th Pay Commission’s recommendations, 34 times of Basic Pay OR Rs.25 lakh OR anticipated price of house, whichever is least can be availed as House Building Advance.

The requirement of minimum 10 years of continuous service to avail of HBA has been proposed to be reduced to 5 years.

If both spouses are government servants, 7CPC has proposed that HBA should be admissible to both separately. Existing employees who have already taken Home Loans from banks and other financial institutions would be allowed to migrate to this scheme, as recommended by 7CPC.

8. Children Education Allowance:

Suggestions of Staff Side:

Presently the allowance is admissible for two children, for studying in a recognised school up to XII standard. The maximum ceiling  is stipulated at Rs.18000/- since this allowance had been hiked by 50% because of the DA component in salary having been crossed 100% on 1.1.2014. It is suggested that doubling of this allowance and increasing the same by 50 % whenever the DA crosses over by 50%

Further, it has been suggested that the CEA scheme may be extended to cover children studying for Graduate/Post Graduate and Professional courses.

7th Pay Commission’s recommendations on Children Education Allowance:

7th Pay Commission has not accepted the Staff Side’s demand that CEA to be applicable for children beyond class 12.

9. HRA:

House Rent Allowance suggested by Staff Side JCM

House Rent Allowance recommended by 7th Pay Commission

HRA when DA crosses 50%

HRA when crosses 100%

10. LTC:

Staff Side JCM demanded the following as far as Leave Travel Concession applicable to Central Government Employees is concerned

1. Permission for air journey for all categories of employees to and from NE Region.

2. Permission for personnel posted in NE Region for a journey within NE Region.

3. To increase the periodicity of the LTC once in two years.

4. Explore the possibility of allowing an employer to undertake tour outside India once in a service career  in lieu of the LTC.

7th Pay Commission Report on LTC:

It could be found that suggestions of Staff Side JCM such as increasing the frequency of All India LTC, permission for air travel for all categories of employees in respect of NE Region etc., were not discussed in the report of 7th Pay Commission.

The proposal to split hometown LTC has been considered and it is recommended that splitting of hometown LTC should be allowed in case of employees posted in North East, Ladakh and Island territories of Andaman, Nicobar and Lakshadweep.

Also, it is obsered by 7th Pay Commission that LTC to foreign countries is not in the ambit of this Commission.

11. Gratuity:

Suggestions of Staff Side JCM:

Staff Side JCM suggested that in respect of gratuity payable to employees ceiling of 16.5 times and the quantum limit of Rs. 10 lakhs should also be removed. It was pointed out that in the banking industry there is no such ceiling of 16.5 months‟ salary but the retiring bank employees are getting at the rate of ½ a month salary for every year of service even over and above 33 years of service. Hence, in respect of Central Government Employees also for a service span exceeding 33 years, the gratuity should be higher and the above ceiling be withdrawn.

7th Pay Commission’s recommendations on Gratuity:

It has been recommended by 7th Pay Commission that ceiling of gratuity is to be raised from the existing Rs.10 lakh to Rs. 20 lakh from 01.01.2016. Further, as per Commission’s recommendations, Gratuity is to be partially indexed to Dearness Allowance. It is proposed that the ceiling on gratuity may increase by 25% whenever DA rises by 50 percent.

Via gconnect.in

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7th Pay Commission recommended that Family Planning Allowance should be abolished.

7th Pay Commission has proposed for abolishing Family Planning Allowance. Analysis and Recommendations of 7th Pay Commission on FPA is as follows:
Family Planning Allowance (FPA) is granted to Central Government employees as an encouragement to adhere to small family norms. The existing rates are as under:

There are demands to make it equal to one increment. Representations have also been received requesting that the allowance should be double for those employees who adopt family planning norms after just one child.

Analysis and Recommendations

The Commission recognizes the fact that most of the benefits related to children, viz., Children Education Allowance, Maternity Leave, LTC, etc., are available for two children only. Moreover the level of awareness regarding appropriate family size has also gone up among the government servants. Hence, a separate allowance aimed towards population control is not required now. Accordingly, it is recommended that Family Planning Allowance should be abolished.

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RSCWS demands for revising 7th pay commission mulitiplication factor, Parity of Pension, and revision of Fixed Medical Allowance – Submits memorandum to 7th pay commission empowered committee

7th Pay Commission Latest News – Railway Senior Citizen Welfare Society has submitted representation to 7th Pay Commission Implementation Cell highlighting the need for reviewing the recommendations for the benefit of Pensioners

No. RSCWS/ CHD / Memo 7th CPC Emp Com/2016-3

Dated: 6-2-2016

1. Cabinet Secretary, Government of India & CHAIRMAN, EMPOWERED COMMITTEE OF SECRETARIES ON 7TH CPC, Cabinet Secretariat, Rashtrapati Bhawan, New Delhi – 110 004
CC to:cabinet@nic.in

2. ALL MEMBERS OF EMPOWERED COMMITTEE ON 7TH CPC

Dear Sir,

Subject: Recommendations of the 7th Pay Commission relating to Pension & Retirement Benefits

We would like to draw your kind attention to the following major points & serious inadequacies & consequential serious injustice to the Pensioners. We earnestly request you for consideration of the following issues:
1. MULTIPLE FACTOR (REF: PARA 10.1.67):

I) The 7th Pay Commission has very unjustly & arbitrarily recommended the multiple factor of 2.57 for fixation of Pay & Pension. It is tantamount to less than 14.3% rise of emoluments as on 1-1-2016 (with expected DA of 125%) as against over 21% rise proposed by 6th CPC. This is especially very much unjustified in view of much high price rise in the last 10 years.

II) Long pending demand may please be accepted for merger of DA for fixing the Revised Pay & Pension;

III) It is, therefore, requested that the multiple factor should, therefore, be raised to 3.15 times of Sixth CPC Basic Pay & Pension if the merger of DA is agreed to or at least to 2.65 if merger of DA is not agreed to.

IV) The Minimum wage of Rs.18000 proposed by 7th Pay Commission is based on Dr Aykroyed formula for Minimum Need Based Wage. This has already been overruled by the Supreme Court as it does not reflect the present day needs for Housing, Social obligations and Children Education etc. The Apex Court had already modified the said formula by adding appropriate weightage for these Factors – which may please be considered for fixing the Minimum Pay and the Pay at higher Levels as well as the Pension as based thereon.
2. PARITY OF PENSION (PARA (10.1.53 & 10.1.67):

a) We welcome the recommendation of 7th CPC and thank the COMMISSION for accepting the long pending demand of Parity between pre and post 7th CPC Retirees. However the method suggested by the Pay Commission for the above purpose, needs to be revised & simplified in view of the following reasons:

i) It may not be possible to implement this Option in many cases for fixation Revised Pension of Pre-2016 Pensioners in the absence of Service Records of the old Pensioners to check the number of increments earned in the Grade from which the Pensioner retired in cases where the Service Records of the old Pensioners are not available thus depriving them of the benefit of the same permanently or for many years till their records are rebuilt – which will be like groping in the dark;

ii) Basing of Pay Matrix & Pension on disproportionate Rise of Pay & Pension – given after 6th CPC – will be unjustified – as the rise given after 6th CPC was 3 times or more in PB 4 as against 2.26 times in PB 2 & PB 3;

iii) Using lower Index of only 2.57 at lower levels and 2.62 at Middle Levels as compared to 2.67, 2.72 and 2.81 at higher Levels of Posts will further accentuate the discrimination caused by the 6th CPC. The Index of 2.81 should be uniformly applied at all Levels.

iv) In the past, while fixing the salary of serving personnel in the revised scale under the 4th CPC recommendations, point to point fixation based on the number of increments already earned was not undertaken and one increment was allowed for every 3 (three) increments earned in the pre-revised scale thereby suppressing the number of increments earned in relation to the number of years actually spent in the grade.

The same principle of allowing one increment for every 3 earned in the 4th CPC scale was also followed while fixing salary of serving employees in 5th CPC scales. This has resulted in artificially suppressing the time spent in a particular level.

v) Senior Pre-2006 Pensioners will get lesser higher pension than even the Pre-2006 junior Pensioners who retired later from the same Post with slightly longer or more years of service in that Grade;

vi) Senior Pre-2016 Pensioners who retired in higher Level of Posts will get lesser pension than the juniors who retired from one or even more Levels below just because Either the Juniors could not get promoted to higher grade but had earned more increments in the lower Grade than the seniors who retired from a higher grade.

Or the two Pay Scale got merged after the retirement of the senior and thus the junior will get the benefit of all increments earned in either of the two scales while the senior will get the benefit of the increments earned only in the higher grade.

All this would be greatly unjustified.

a) It is, therefore, requested to please simplify the method for the purpose and the same should be based only on the information available in the PPO.

b) It is requested that – in order to remove the above infirmities – the Pension of Pre-2016 Civilian Pensioners be fixed at the higher of the following two formulations:

i) a) Pension of Pre 2016 Pensioners be fixed at par with Average of the Pension of Post-2016 Pensioners based on the 50% of the Average Pay in the Pay Matrix or such other formula as may be universally implementable as per readily available records of all concerned / based on the information available in the PPO;

b) Till such time the above said dispensation is implemented, minimum Pension of Pre-2016 Pensioners should not be less than 50% of the minimum of Pay in the Pay Matrix of 7th CPC for the Pay Level corresponding to the Pay Scale or the Grade Pay from which the Pensioner had retired;

ii) Pension fixed after Sixth CPC be multiplied by Multiple Factor of 3.15 if the merger of DA is agreed to or at least to 2.65 if merger of DA is not agreed to (as proposed in Para 3 above)

iii) Increments earned or the number of years spent in either of the merged scales should be taken into consideration for fixing the Revised Pension.

Pensioners may please be fixed at the higher of the above – without getting any option from the Pensioner as it is an obvious matter that all will opt for the higher Pension.
3. ADDITIONAL PENSION (Para 10.1.28):

7th CPC has totally ignored the reasons of extra expenses on medical care & treatment in old age for the demand for reducing the age for grant of Additional Pension of 5% from 65 years of age, 10% from 70 years and 15% from 75 years. It has also ignored even the recommendations of DOP&PW for starting it at the age of 75 years. This has greatly hurt the Pensioners.

It is, therefore, requested that the Additional Pension may please be granted @ 5% from 65 years of age, 10% from 70 years and 15% from 75 years of age, besides continuing with Additional Pension of 20% from 80 years, 30% from 85 years, 40% from 90 years, 50% from 95 years and 100 % from 100 years of age as granted after 6th CPC.
4. FIXED MEDICAL ALLOWANCE(Ref: Para 8.17.52):

It is regretted that the 7th CPC has recommended no enhancement of Fixed Medical Allowance (FMA) for Pensioners for day- to-day medical treatment not requiring hospitalization, merely on the ground that “this Allowance was last enhanced from Rs.300 to Rs.500 pm from 19/11/2014” – even without going into the merits of the following valid reasons advanced for the revision thereof:

i) FMA should have been revised from 1-9-2008 – like all other Allowances after the 6th CPC. The belated revision done in 2014 was itself delayed by 6 years;

ii) The cost had exorbitantly increased for the Medicines, Consultation Fee and cost of Pathological Tests required for day-to-day medical treatment since 1999 (when the FMA was initially granted) and this had risen at a much steeper rate than the Price Index.

iii) Average expenditure per pensioner/per Patient on OPD in CGHS Hospitals has increased manifold and is at present over Rs.2500 per patient. This reflects the exorbitant increase in the cost of Medicines, Consultation Fee and cost of Pathological Tests etc. required for day-to-day medical treatment. The FMA of Rs.500 per month is thus a pittance of the actual expenditure on day-to-day Medical Treatment by the Pensioners who are residing in non-CGHS /RELHS areas and have thus opted out of the same.

iv) A large proportion of Pensioners were residing in remote areas or villages having no excess to CGHS Dispensaries & Railway Hospitals and as such, are wholly dependent on the paltry amount of FMA for day-to-day treatment of self & spouse.

v) It is, therefore, requested that the FMA may please be revised to at least Rs.2000 p.m. or at par with the average expenditure on OPD Treatment per month per Pensioner / Patient.

Hoping for a favorable consideration;

Thanking you

Yours faithfully
(Harchandan Singh)
Secretary General, RSCWS

Source: IRTSA

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7th CPC recommends that Heads of NDC, NDA and DSSC institutions should be upgraded to Apex Scale

7th Pay Commission has recommended CGWB Technical Operator (Drilling) be given GP 1900 and be combined with the post of Compressor

National Academies

The Commission has received a number of demands from both the civilian and defence employees that the heads of National Academies should be upgraded to Apex Scale.

The Commission finds merit in upgrading only the heads of tri-services institutions of the defence forces. Accordingly, it is recommended that the heads of the following three tri- services institutions should be upgraded to Apex Scale:

a.   National Defence College (NDC), New Delhi

b.  National Defence Academy (NDA), Khadakwasla, Pune

c.   Defence Services Staff College (DSSC), Wellington

Only those  officers should  be posted  as  heads  of these establishments  who have minimum two years of service left before superannuation. No extension in service should be granted based on these recommendations.

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7th CPC recommends higher grade pay for JPA, SPA, Off-set Machine Operator, Machine Man and Electrical Supervisor

7th Pay Commission has recommended higher grade pay for JPA, SPA, Machine Man and Electrical Supervisor

Press Stream

In IBM, the post of Junior Press Assistant (JPA) is placed in GP 1800, Senior Press Assistant (SPA) is in GP 1900 and Off-set Machine Operator is in GP 2400. Direct entry is at the level of JPA for which the qualification of Class X+ITI is required. In GSI, direct entry is at the level of Pressman, with GP 1900 and identical qualification requirements as that of JPA in IBM. JPAs of IBM have demanded parity with the Pressman post of GSI.

Analysis and Recommendations

The posts of JPA and SPA should be merged in IBM. The merged cadre should be called Pressman cadre. It should be initially fixed in GP 1900 with  appropriate placement in the pay matrix. No discrepancy is noticed with regards to the post of Off-set Machine Operator. Hence, they should be granted normal fixation in the pay matrix.

Machine Man

The post of Machine Man in IBM lies in GP 1800 with qualification requirement of Class X+ITI. This post has had horizontal parity with the post of Junior Press Assistant (JPA). Since we are recommending upgradation of JPA from GP 1800 to GP 1900, upgrading the post of Machine Man also to GP 1900 is warranted. Accordingly, the same is recommended.

Electrical Supervisor

The post of Electrical Supervisor in IBM lies in GP 2800 with qualification requirement of Diploma in Engineering. This post has had horizontal parity with the post of Junior Technical Assistant (JTA). Since we are recommending upgradation of JTA from GP 2800 to GP 4200, upgrading the post of Electrical Supervisor also to GP 4200 is warranted. Accordingly, the same is recommended

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Analysis on 7th Pay Commission bunching Benefit discussed in Para 5.1.36 and Para 5.1.37 of 7th Pay Commission report – Pay in Grade Pay of Rs. 5400, 6600, 7600 and 8900 will be entitled to additional increment as bunching benefit

Who are entitled to 7th Pay Commission Bunching Benefit as per Para 5.1.36 of Pay Commission report ? – As per Illustration provided in the report Employees in GP 10,000 who are fitted in to minimum of Level 14 of New Pay Matrix will be eligible for one additional increment and would be fitted in to next cell of Level 14.

7th Pay Commission Pay Fixation:

As per Para 5.1.28 of 7th Pay Commission Report, pay fixation in the new pay structure will have to be made as follows

Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’.

Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.

Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level

7th Pay Commission bunching Benefit:

In addition to above, 7th Pay Commission proposes bunching benefit in Para 5.1.36 whenever more than two stages are bunched together for fixation of pay in 7th CPC pay matrix, 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.

Further, Para 5.1.37 of the report provides an illustration for fixation of pay of two employees who are drawing pay of Rs.53,000 and Rs.54,590 in the GP 10000.

As per this illustration, after applying 7CPC multiplication factor of 2.57, both of these employees will have to be fixed in first cell of level 15 in the pay of Rs.1,44,200 as their revisesd pay are worked out to Rs.1,36,210 and Rs.1,40,296 respectively which are not more than the first cell of level 15 (Rs.1,44,200)

But to avoid bunching of these two stages of pay, the person drawing pay of Rs.54,590 will get fixed in second cell of level 15 in the pay of Rs.1,48,500, while the other who is drawing pay of Rs. 53,000 will have to be fixed in Rs.1,44,200.

Based on this illustration, a table containing Entry pay of Rs. 53,000 in GP 10000, subsequent stages for this pay (pay with increment of 3% for every year) and 7th Pay Commission pay fixation for the same has been prepared as below.

** One increment as bunching benefit

Employees in Grade Pay 5400, 6600, 7600 and 8700 who are fixed in stages next to entry pay will also be entitled to 7th Pay Commission Bunching Benefit

Applying same principles, we could find that next stage in entry pay in respect of Grade Pay 5400, 6600, 7600 and 8700 would be entitled to one additional increment as bunching benefit

1. Grade pay 5400 corresponding to pay band 15600-39100 (Entry Pay Rs. 21000 and subsequent stages of pay with increment of 3% for every year)

** One increment as bunching benefit

2. Grade pay 6600 (Entry Pay Rs. 25350 and subsequent stages of pay with increment of 3% for every year)

** One increment as bunching benefit

3. Grade pay 7600 (Entry Pay Rs. 29500 and subsequent stages of pay with increment of 3% for every year)

** One increment as bunching benefit

4. Grade pay 8900 (Entry Pay Rs. 49100 and subsequent stages of pay with increment of 3% for every year)

** One increment as bunching benefit

Whether Employees in who are fixed in the middle stages of new 7th CPC pay matrix will be eligible for Bunching Benefit ?

Relevant portions of 7th Pay Commission report (para 5.1.36 and Para 5.1.37) that discuss about Bunching increment are given under the heading “Entry Pay”.

The illustration provided by 7th CPC for fixation of pay with bunching increment also discusses only about entry pay in a grade pay.

Also, Para 5.1.28 of 7th Pay Commission Report which explains the method of fitment of existing 6th CPC pay in all stages in to 7th Pay Commission Pay Matrix does not contain any explanation about Bunching increment

Hence, it is not clear from the 7CPC report whether bunching benefit would apply to employees who are fixed in middle stages of new pay matrix.

For instance, we analysed the pay fixation of entry pay pertaining to Grade Pay Rs. 1800 and Grade Pay Rs. 2400 and its subsequent stages of pay with increment of 3% for every year

## Bunching of 6cpc pay in two stages in to one stage of 7CPC Pay Matrix

From the above, it could be seen that Pay pertains to Grade Pay of Rs. 1800 and Rs. 2400 in middle stages are getting bunched and fitted in to one stage of new pay structure as per the methods of fitment envisaged by 7th Pay Commission.

However, 7th pay Commission report has not discussed about applicability of Bunching Benefit in respect of pay fixation in middle stages of new pay matrix. It is also not clear whether bunching increment would apply to subsequent stages of pay when bunching increment is given to previous stage in the same level. For instance, 7th Pay Commission has recommended that pay of Rs. 54590 in GP 10,000 will be eligible for bunching increment and will be fitted in new of pay of Rs. 148,500. However, there is no discussion about the subsequent stage to Rs. 54,490 in GP 10,000 which is also getting fixed in same new Pay of Rs. 148,500/-

We are of the opinion that to clarify all these doubts, Govt has to come up clear-cut Clarification on Bunching Increment issue while 7th Pay Commission report is implemented.

Source: gconnect

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7th CPC recommends higher grade pay for Railway Commercial clerk, Reservation Clerk and ticket checking staff- Three categories to be merged and then placed in the appropriate level in the new pay matrix

7th Pay Commission proposes that all these cadres are to be merged and called as Railwy Commercial ant Ticketing Staff.  50% posts which require class XII qualification will have to selected and like wise 50% of posts for which graduation will be eligibility will be selected through RRB.  Both these posts will be upgraded to Grade Pay of Rs 2000 and Rs. 2800 respectively prior fixation of new pay under 7CPC.  The remaining post after selection through RRB will have to be filled through promotion

Commercial Staff

There are three categories of Commercial Staff–Commercial Clerks, Enquiry Cum Reservation Clerks (ECRCs) and Ticket Checking staff (TTEs and TCs). They are responsible for commercial duties like issuing of tickets–unreserved as well as reserved, handling enquiries, checking of tickets on board trains, etc. Their present structure, along with the employee strength in each GP is as follows:

For Commercial Clerks, the minimum educational qualification stipulated is Class X.  Entry into the cadre is only at GP 2000 – 50 percent direct recruitment through RRB; 33 1/3% through LDCE from eligible erstwhile Gr.D staff of Traffic and Commercial Departments with three years of continuous service; 16 2/3% through promotion of matriculate employees in GP 1800 from eligible categories.

For ECRCs, graduation is the minimum requirement, with entry GP2800.

Entry in Ticket Checking staff is at GP 1900–50% direct recruitment by RRB with the minimum educational qualification of Class X and the remaining 50 percent filled by promotion–33.33% by General Selection and 16.66 percent by LDCE with minimum qualification of Class X.

All the three categories have demanded improvement in their pay structure. Representations have also been received to upgrade the entry level qualification of Commercial Clerks and Ticket Checking staff from the current level of Class X to graduation. It has also been stated that with the proliferation of technology for booking unreserved and reserved tickets, the requirement of Commercial Clerks and ECRCs is going down. At the same time, with an increase in the number of trains, the need for Ticket Checking staff is on the rise. Hence, it has been suggested that these three cadres should be merged.

Analysis and Recommendations

The Commission analysed the year-wise data pertaining to the percentage of reserved tickets booked at the counters vis-à-vis those booked through the internet:

Reservations on Indian Railways

A clear trend towards increase in internet booking is visible, so much so that internet booking has now exceeded the counter booking. With the introduction of innovative technological solutions for the unreserved sector, like the recently launched mobile application, the counter sales of unreserved tickets are also likely to go down.

Hence, the Commission finds merit in the argument that the three categories of Commercial staff should be unified into a single cadre. Accordingly, it is recommended that they should be consolidated into one cadre called Commercial and Ticketing Staff. The cadre will have the following structure after merger:

Employees in GP 1900 should be upgraded to GP 2000; those in GP 2400 should be upgraded to GP 2800 and then placed in the appropriate level in the new pay matrix. The inter-se seniority will be as per normal rules of seniority. Proper training will have to be imparted to the employees as per the requirements. The recruitment in the cadre should be at two levels:

a.   At Level 3: 50% from open market through RRB, with minimum qualification of Class XII, 33 1/3 % through General Selection from Traffic and Commercial staff in GP 1800 fulfilling the eligibility criterion, and 16 2/3% through LDCE.

b.   At Level 5: 50%from open market through RRB, with minimum qualification of Graduation, and 50% through promotion.

With this merger, employees in GP 1900 and GP 2400 will get the benefit of upgradation. At the same time, the job content of all three categories will be enriched, as they will be able to join any of the three streams. Organizational flexibility will be enhanced as the department will have a larger pool of employees for optimal utilization, as per the requirement.

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