The pay gap under the 7th Pay Commission was a major issue for Central Government employees. The cabinet decided go ahead with the recommendations of the pay panel which suggested 14.27 per cent hike in basic pay which was effective from January 1 2016.

The cabinet had cleared the recommendations of the pay panel in June which effected 4.8 million central government employees and 5.2 million pensioners.

Recommendations by-passed

While clearing the pay panel’s recommendations the basic hike in pay effective January 1 2016 was at 14.27 per cent. The recommendations made by the Empowered Committee headed by Cabinet Secretary P K Sinha for an average 30 per cent hike in basic pay was bypassed by the Union Cabinet.

Pay matrix

As per the notification there were 18 pay matrices that were approved. The notification said, the highest pay matrix (Level-18) for the Cabinet secretary to the Union government is Rs 2,50,000 (fixed), which was Rs 90,000 (fixed) in the immediate past under 6th pay commission recommendation. The rate of increase is 178%. The pay matrix in the lowest grade (Level-1) is Rs 18,000 which was Rs 7,000 under 6th pay commission recommendation. The rate of increase is 157%.

The ratio of pay between the highest declared pay matrix (Level-18) and the lowest grade (Level -1) in the 7th Pay Commission recommendations is 1:13.9, which was 1:12 as per the previous pay commission:

No Pay Gap made up

All pay commissions in the past had made up the pay gap between the lower paid employees and the top officials from second Pay Commission 1:41 ratio to Sixth pay commission 1:12. In the first pay commission, the pay of the top bureaucrats was 41 times higher than the employee earning the lowest. The future pay commissions however reduced the ratio from 1:41 in 1947 to about 1:12 in 2006.

Reducing Pay Gap Ruled Out

Reliable sources confirm, the government has put aside the demand by central government employees to reduce the pay gap. The government has categorically made it clear that no decision will be taken to reduce the pay gap under the 7th Pay Commission, confirm sources. Government employees have been demanding for a long time to pay ratio should be minimised. They have also demanded that Rs 25,000 should be the minimum pay in the new pay scale and the fitment factor will be higher than the 2.57 times approved by the government based on the pay commission recommendations.

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7th CPC Allowances and its Date of Effect – Actual report in the current scenario

7th CPC Allowances is now become a hottest topic of discussion and most expected matter by Central Staffs. Central Government confirmed officially that the Report of the Allowance Committee is submitted to the Government. Later the Cabinet Secretary told that Allowance Committee Report will be examined by the Expert Committee of Secretaries which was appointed initially to expedite the Recommendations of 7th Pay Commission.

It was said that the Cabinet Secretary Fixed 1st June 2017 for perusal of the report of the Allowances Committee by the Empowered Committee. Whether ECoS has finished its work or not is not known yet.

The Cabinet Committee under the Chairmanship of Prime Minister Shri. Narendra Modi has met On 7th June 2017. There was lot of expectation on that day that the Cabinet would announce its decision about 7th CPC Allowances. But nothing has been announced so far.

The CG Staff have been frustrated by the Government’s approach towards settling the issue of 7th CPC Allowances. The Government servants are considerably losing monetary benefits they are supposed to get from the implementation of 7th CPC Recommendation. They are expecting the following two things to be decided at the earliest.

The amount of Increase in the Rates and Percentage of Allowances What will be the Date of effect ..?

Delaying the Decision on the above two issues are the main reason for the frustration of Central Government Employees. The Federation are trying their level best to give pressure through agitation program to invite the attention of Central Government to announce the 7th CPC Allowances as soon as possible.

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Highest HRA at 27% as against 30% demanded by Staff Side

As per Zee Business News report, Empowered Committee of Secretaries has presented its report on 7th Pay Commission Allowances to Cabinet for its approval. It is further reported that Cabinet is likely take crucial decision on this issue involving around 50 lakh Central Government Employees during next Week.

Earlier, the Lavasa Committee appointed by the Govt for examining the Allowances related recommendations of 7th Pay Commission submitted its report to Govt recently. Following the usual procedure of examination by Empowered Committee of Secretaries in the case of Financial decision to be taken by Cabinet, the report relating to 7th Pay Commission allowances was also examined by Empowered Committee.

The Empowered Committee of Secretaries (E-CoS) has submitted its report on higher allowances like House Rent Allowance (HRA), Dearness Allowance (DA) and Transport Allowance (TA) under 7th Pay Commission (7th CPC) to Union Cabinet, sources told Alok Priyadarshi of Zee News.

However, the demand of the central government employees that HRA of 10%, 20% and 30% on revised 7th CPC Pay based on classes of cities was not considered in favourably, reports Zee News. Instead, Empowered Committee have recommended highest HRA slab ranging between 25%-27% of the basic as against demand of 30%

7th Pay Commission has earlier recommended house rent allowance at the 24%, 16% and 8% of the 7th CPC revised Basic Pay for Class X, Class Y and Class Z cities respectively.

If the report of the Empowered Committee is acceptable to the Cabinet, it more likely that final decision on revision of 7th Pay Commission Allowances will be taken by Cabinet next week.

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New Delhi: Finance Ministry sources today said on condition of anonymity, there is no scope to change in higher allowances, which were recommended by the 7th Pay Commission.

The sources came up with the remark while talking to us about hiking of allowances of all central government employees and officials by the Empowered Committee of Secretaries (E-CoS) better than the 7th Pay Commission recommendations.

Those who will hope over these issues will gain nothing but no change in 7th Pay Commission recommendations on allowances are very much hiking possible, they added.

Replying to a question, the sources said, “The demand of central government employees to hike in allowances than the 7th Pay Commission recommendations is likely not to be considered by the secretaries panel.”

“The central government finally decided not to give any facility to central government employees better than the 7th Pay Commission recommendations. Accordingly, the government stuck with the 7th Pay Commission recommendations on pay scales and advances and its implementation have been made forcefully.

Moreover, the government is now engaged in forceful implementation of allowances, which was recommended by the 7th Pay Commission,” the finance ministry sources added.

The sources also said that the quantum of allowances may not vary from those proposed by the 7th Pay Commission as the committee on allowances headed by Finance Secretary stuck with the 7th Pay Commission’s recommendations on allowances.

The Government will not necessarily be bound by the findings of the Empowered Committee of Secretaries on allowances, the sources confirmed.

“The Empowered Committee will make its proposal,” source said. “government will make the decision.”

In late June, after implementing the 7th Pay Commission proposals on salary and pension, Finance Minister Arun Jaitley had announced the ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa to examine the suggestions on allowances. It had time till October to give the report but this got delayed.

The decision on allowances was postponed because the 7th Pay Commission wanted a number of these to be abolished or subsumed. Employee unions were opposed.

The ‘Committee on Allowances’ submitted its report to finance minister Arun Jaitley on April 27.

However, the Committee’s report on higher allowances under the 7th Pay Commission haven’t made public.

The report on allowances is now examined by the Empowered Committee of Secretaries (E-CoS) headed by the Cabinet Secretary P K Sinha and after it, it will be placed before the Cabinet.

Shiv Gopal Mishra, secretary of the National Joint Council of Action (NJCA), which is a centralised union of several central government employees unions, met with the Cabinet Secretary recently for inordinate delay on implementation of allowances.

The Cabinet Secretary assured Mishra that the Empowered Committee of Secretaries is likely to take a final decision on higher allowances by June 1.

The central government employees now get all allowances except dearness allowance, according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

TST

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Shiva Gopal Mishra
Secretary
National Council (Staff)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001

No.NC/JCM/2017

Dated: May 23, 2017

All Constituents of Staff Side(JCM)

Dear Comrades!

Sub: Brief of the meeting held today with the Cabinet Secretary (Government of India)

Today I met the Cabinet Secretary (Government of India) and handed him over a copy of our letter regarding inordinate delay in implementation of the report of the Ashok Lavasa Committee on Allowances.

Also shown him our anguish regarding other demands, pending with different committees, such as Minimum Wage, Fitment Formula and NPS, etc. etc.

The Cabinet Secretary said that, he has fixed date of 1st June, 2017 for perusal of the report of the Allowances Committee by the Empowered Committee, and soon after that, he will send a memorandum to the Cabinet for their consideration.

This is for your information.

Comradely yours,

sd/-
(Shiva Gopal Mishra)
Secretary (Staff Side)

Source: NCJCM Staff Side

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Let us now analyse what would have been the case, had 50% of Dearness Allowance / Dearness Relief been merged with pay / pension with effect from 01-11-2011. DA merger had taken place before implementation of 5^th and 6^th CPC Recommendations.

Though we had demanded it this time also, it was not agreed to. Whether enough organizational pressure was there to get the demand accepted is now an academic issue for discussion only. The DA / DR was 51% in January 2011. The percentage rates of DA/DR were 58, 65, 72, 80, 90, 100 107, 113, 119 and 125 during subsequent six monthly periods up to January 2016.

Now we shall workout the financial implication of the 50% DA/DR merger notionally.  A person with a basic pay / pension of Rs. 10,000/- would have got Rs. 1,06,500/- as difference in DA/DR for the period 01-01-2011 to 31-12-2015. That is the notional loss. It is easy to workout. For every 1,000 rupee as pay / pension, the benefit would have been Rs. 10650/- We cannot even dream of such an amount as pay revision “bonanza”.

The pay + DA of the lowest paid employee who was drawing Rs. 7,000/- (5,200 +1,800). On 01-01-2016 would have been Rs. 1,8375/- In that case, no Pay  Commission would have dared to recommend Rs. 18000/- as minimum pay as it would have been less than the actual pay + DA drawn by the employee.

Even if we accept the 14.29% increase recommended by the 7^th pay commission, the minimum pay would have been Rs. 21,000/- and so the multiplication factor would have increased to 3 instead of 2.57. Employees and pensioners would have been benefitted significantly.

We were after the euphoria of a Pay Commission. We thought the 7th pay commission and the Government will deliver us good. It was a folly on our part in not clinching the demand of merger of 50% DA with effect from 01-01-2011. We shall blame ourselves for that. This is a lesson for us to be cautious in future.

Source: CGPA Kerala

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After the Cabinet approval, the Finance Minister tweeted,  “Congratulations to central government officers, employees & pensioners on a historic rise in their salary & allowances through the 7th Pay Commission.”
The Central Government Employees were dismayed by this tweet and wondered how it was described as historic rise. There are so many hidden facts in the cabinet approval for implementation of 7th Pay Commission recommendations

1. What did the Empowered Committee of secretaries do in Sixth months and what did they recommend? There was nothing mentioned about the report of this committee submitted to Cabinet and Whether the cabinet considered the ECoS recommendations or not.

2. This is the first time in the Pay Commission History that Pay Commission recommendation are going to be implemented in staggered manner. Only Basic Pay alone will be revised. All other Allowances will be revised after four months.

3. After second Pay Commission, this is the lowest hike recommended in Pay Scale. Just 14.27%. 30% hike is expected invariably by all cg employees.

4. This is the first time the central government employees are not so excited about the Hike recommended in 7th pay Commission and its Implementation. The reasons are, Very Minimal hike and Implementation of Allowances is deferred.

5. There was an anomaly in sixth pay Commission in granting Annual Increment for the New entrant. If the Govt Servants recruited in the first six months of the year from January 2nd to June 30th, the Annual Increment will be granted on 1st July of next year (i.e after 13 to 18 Months ) .This anomaly is also not addressed by 7th Pay Commission.

6. To address this issue, NCJCM proposed Two Increment dates i.e on 1st January and 1st July . This is not considered by Govt.

7. The Sixth CPC has recommended to grant MACP on Grade Pay Hierarchy. Many Court Cases are won by Govt servants in favour of granting MACP on Promotional hierarchy. But this issue also not considered by Govt and 7th Pay Commission.

8. The Central Government Employees were shocked by the recommendation of reducing the Rates of HRA to 24%, 16% and 8%. Adding further fuel to the fire, the reduced allowances are also not implemented with immediate effect.

9. The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. But the CG Employees welcomed the Pay Commission recommendation in CGEGIES, as it is providing high risk cover. But it is turn down by Government.

10. The only positive fact in 7th Pay Commission Recommendation is its PAY MATRIX. In Sixth Pay Commission, there was disparity in Pay fixation for promotes and new Entrants. The Entry Pay fixed for particular Grade to the New Recruits is higher than the Pay fixed for the Govt Servants promoted to that same Grade. This issue is somehow addressed in 7th Pay Commission by fixing Entry Pay for all Levels in New Pay Matrix.

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BPMS has decided that all the affiliated Unions will support the indefinite strike from 11th July 2016

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Based on the ECoS report, the Finance Ministry may be preparing a Cabinet note and the VII CPC issue may come up for approval by the Cabinet as early as June 29.

GOVT SHOULD NOT TAKE THE CENTRAL GOVT. EMPLOYEES & OFFICERS FOR A RIDE.
CONFRONTATION WILL BECOME INEVITABLE IF UNILATERAL ORDERS ARE ISSUED

It seems that Govt. is not in favour of a negotiated settlement on the 7th CPC related issues. Based on the ECoS report, the Finance Ministry may be preparing a Cabinet note and the issue may come up for approval by the Cabinet as early as June 29.

The Seventh CPC report was submitted on 19th November 2015 after a delay of about 3 months. The Government especially the Finance Minister had assured that the final decision over the report will be taken within 4 months. On 19th June 2016, the delay has crossed seven months. Till date the Govt. has not come forward for a negotiated settlement. Instead, Empowered Committee of Secretaries (ECoS) headed by Cabinet Secretary conducted a meeting with the staff side on 1st March 2016. In the meeting Govt. did not disclose its mind on any of the demands raised by the staff Side in the charter of demands submitted to Govt. Staff Side explained the justification for each demand but official side didn’t make any comment, either positive or negative. The concluding paragraph of the minutes of the meeting reads as follows:

“After hearing the participants, Cabinet Secretary observed that the deliberations have helped ECoS in understanding the major concerns of the staff side and said that all issues have been taken note of. He assured that fair consideration will be given to all points brought out by JCM before taking final views. He further stated that the ECoS needs to examine the Report of the Commission in entirety as well as the issues raised by JCM in consultation with all other stake holders. As such, it may take some time to take a final call on the recommendations of the Commission.”

It may be seen that, neither did the Govt. side made any commitment on any demands, nor did they indicate in the minutes that further discussion will be held with the staff side to arrive at a negotiated settlement on each demands. It seems that the Govt. is moving ahead to issue unilateral orders taking the staff side for a ride.

The JCM staff side Secretary, in his letter dated 2nd May 2016, addressed to Cabinet Secretary, has made the stand of the staff side clear, without any ambiguity. The letter reads as follows:

“I have been directed to draw your attention towards minutes of the Standing Committee of National Council JCM held on 7th May 2008 and our rejoinder submitted to Govt. in the matter of Report of 6th CPC.

You will kindly find that it was not only a general discussion, but also official side explained their views on each and every issue.

I would therefore request your good self to kindly arrange for similar type of meeting for bi-lateral settlement on each of the issues raised by the staff side, NC/JCM before the Empowered Committee of Secretaries.”

Thus the picture is clear now. The Government, it seems, has a hidden agenda to take the staff side for granted without giving any further opportunity for a negotiated settlement. The staff side on the other hand has taken a position that if unilateral orders are issued, without taking the staff side into confidence, the NJCA shall go ahead with the indefinite strike from 11th July 2016 as already informed to the Govt.

The coming days are crucial. If the Govt. adopts delaying tactics or issue unilateral orders rejecting our demands, then confrontation shall become inevitable. The stand taken by the then Nehru Govt. that “Pay Commission report is an award and is not negotiable” has resulted in the historic indefinite strike of 1960, which commenced on July 11th midnight.

Central Government Employees and Officers comprising Railways, Defence, Postal and other Central Government departments are demanding modification in the recommendations of 7th Central Pay Commissions including minimum wage and fitment formula. Other demands are scrapping of New Contributory Pension Scheme, No FDI in Railways and Defence, filling up of vacancies, No outsourcing, downsizing, contractorisation and corporatisation etc.

The NJCA & CCGGOO had already given strike notice to Government. As the Government is not ready for a negotiated settlement, the Central Government employees and Officers have to intensify the campaign and preparations and make the strike a total success.

About 33 lakhs Central Government Employees and Officers will participate in the strike. 40 lakhs Central Government Pensioners have declared their solidarity with the strike. Central Trade Unions had also extended their full support. State Government Employees Federations have cautioned the Central Government that they will also be compelled to join the strike if Government refuses to settle the demands relating to 7th CPC recommendations as majority of the state Governments are implementing the Central pay parity to their employees also.

On the one hand NJCA & CCGGOO are fighting for the cause of Central Government Employees and Officers and on the other hand rumour mongers are spreading false news through social media. Rumour mongers are coming out daily with different kind of news and pay scales about 7th Pay Commission. Please don’t believe rumour mongers on WhatsApp, Facebook and other social media sources.

There had been no meaningful discussions with the NJCA & CCGGOO so far. The computation of Minimum wage by the 7th CPC deserves to be rejected as the commission has, in a bid to suppress the entitlement doctored the formula itself. The wages of an MTS in civil service, who is a group C employee cannot be less than Rs 26000 on the basis of the formula evolved in 1957 to which the Government is a party. There cannot therefore be any question of reduction in the quantum of minimum wage.

The NPS, which the Government introduced for those joined after 1.1.2004 in Government service has to be construed as a fraud perpetuated and deserves to be abandoned. There cannot be two classes of civil servants in the country; one making contribution but still not getting any assured pension and the other entitled for a statutory defined pension without any contribution. Those who are covered by the NPS in Central Civil Service are now more than 40% of the total personnel. The Government must be bold enough to address this issue.

It is high time, that the Government comes forward, hold meaningful and fruitful discussion with NJCA & CCGGOO and settle the Charter of demands. The continued procrastination is a sure step to confrontation and the Central government employees in the Country will certainly commence the strike action from 11.7.2016.

The entire civil services, which include the Railways, Postal, Defence and all other services of the Government of India, will come to a grinding halt on 11.7.2016.

Source: http://aidrdotoa.blogspot.in/

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New Delhi: The review panel that is examining the 7th Pay Commission recommendations, has formulated a fresh approach to deal with the issue of complexity over implementation of the 7th Pay Commission report.

According to Finance Ministry official involved with the process of 7th Pay Commission recommendations’ implementation, the Empowered Committee of Secretaries (review panel) headed by Cabinet Secretary P K Sinha has decided to make up pay gap between employees and higher officers and to continue allowances and advances, which was scrapped by the pay commission.

The review panel is now working on an effective mechanism for implementation of the 7th Pay Commission report by resolving the issues that arose over pay gap between low paid employees and top level officers as the Prime Minister’s Office (PMO) has reportedly asked them for it.

A proposal for raising basic salary of the central government employees by 30 per instead of 14.27 per cent, was recommended by the 7th Pay Commission is also under study. This is a very rough average because for low paid employees may get more basic pay hike, officials said on Thursday.
Accordingly, minimum basic salary is likely to hike at least Rs 24,000 from Rs 18,000 recommended by the Seventh pay commission, they added

But the final decision on the row over better pay hike is expected to come from PMO in next month.

People, familiar with the development, told the Sen Times that for the reason the review panel wish a speedy process on the 7th Pay Commission report during their next two meetings.

“The final proposal on the proposed pay matrix for central government employees will be sent to the Finance Minister Arun Jaitley in the next few weeks,” officials told us.

On receipt of the proposal from the review panel it would be placed before the cabinet for its nod through Finance Minister, they added.

Under the prevailing circumstances, the central government employees are unlikely to draw salaries under the new pay matrix before August.

Officials, however, said whenever the new pay matrix would come into effect, the central government employees would get their enhanced salaries with effect from next year January 1 but they will get the benefit of allowances like House Rent Allowance, Transport Allowance from the date of implementation of the 7th Pay Commission recommendations.

The complexity over implementation of the new pay commission cropped up soon after the recommendation made by the Seventh Pay Commission headed by Justice A K Mathur.

The central government employees are in for disappointment as the 7th Pay Commission report has been proposed a 14.27 per cent hike in basic pay, which is significantly lower than what the 6th pay commission had recommended. Sixth Pay Commission had recommended a 20 per cent hike in basic pay which the government doubled while implementing it in 2008,

The central government employees also prefer continuation of some allowances and advances like risk allowance, small family allowance, festival advance, motor cycle advance but the 7th Pay Commission recommended scrapping of those.

The officials also confirmed that the review panel is likely to propose doubling of existing rates of allowances and advances, which has been recommended for abolition by 7th Pay Commission like risk allowance, small family allowance, festival advance, motor cycle advance.

The Seventh Pay Commission proposed the highest basic salary at Rs 250,000 and the lowest at Rs 18,000 for the central government employees.

The Seventh Pay Commission has recommended abolition of pay band and pay scales, and replacing them with what is known as a pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.

TST

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