There is a press note floating around on social media regarding certain decisions taken by the Cabinet related to pay and pensionary modalities related to the 7th Central Pay Commission (CPC). Though many have questioned its veracity, this is to confirm that it is absolutely a valid document and has been officially issued by the Ministry of Finance.

That said, let me run through some of the important decisions taken by the Cabinet, clarifications thereon and their impact. Please note that the new Pay Rules issued by the Ministry of Defence do not take into account the changes in the pay structure or removal of anomalies and these shall be incorporated through separate amendments in the rules issued on 03 May 2017.

Restoration of Percentage based Disability Pension Rates

The 7th CPC had recommended ‘flat/slab’ rates of disability pension for the defence services rather than the ones based upon ‘percentage of pay’. Civil disabled personnel were however retained on the percentage system as before. As stated earlier, frankly, I never expected this regressive 7th CPC recommendation to be accepted by the Government, but unfortunately it was. While recommending this aspect, the 7th CPC had also made unfounded and uncharitable remarks against disabled soldiers by casting aspersions on those who have incurred disabilities while in service which was discussed in detail by me earlier in my opeds, here and here. This resulted in a massive decrease after the 7th CPC resulting in a payout even lower than 6th CPC rates for almost all post-2016 retirees of all ranks and also for pre-2016 retirees of certain ranks. The arbitrariness of this decision becomes evident from the following chart at the apex levels:

Thankfully, the then Defence Minister, Mr Manohar Parrikar, fully understood the issue and took personal interest in getting the issue referred to an Anomaly Committee. The Defence Services HQ as well as the Ministry, and even civilian employee organisations, supported the resolution of this anomaly which now stands addressed and the Cabinet has decided to retain the old system of calculation on percentage basis, that is, 30% of pay shall remain the disability element for 100% disability. I however do hope that a protection clause is introduced for pre-2016 retirees of lower ranks who stood to gain from the slab rates.

Improvement in Pension calculation system for pre-2016 civil and defence retirees

The Cabinet has also accepted an improvement over and above the system of pension calculation which was finally effectuated after the 7th CPC. Rather than basing the pensionary calculations on the “Old Pension X 2.57” formula, an option would be provided to calculate the pension based upon the notional pay stage from which the employee had retired as opposed to the minimum of pay as was the system followed till the 6th CPC. Calculation of pension in this manner would definitely enhance the pension of civil pensioners and perhaps a small number of defence pensioners, who, in all probability would be provided the opportunity of choosing the most beneficial option, that is, the new formula, 2.57 multiplication formula or OROP rates. Contrary to popular perception, this does not exactly result in OROP for pre-2016 civil employees as is being projected, since while this is based on notional data, the military OROP is operated on live date of fresh retirees, moreover while this system is expected to be revised only after ten years, the military OROP as per the current scheme is meant to be revised after every five years.

Issuance of Pay Rules rather than Instructions on Pay

There were messages that the Chiefs of the Defence Services have been sidelined and downgraded since the earlier system of issuance of Special Army Instructions, Special Navy Instructions and Special Air Force Instructions (SAI/SNI/SAFI) has been discontinued and a new dispensation of ‘Pay Rules’ has been initiated. This seems to be the negative imagination of fertile minds. SAI/SNI/SAFI were never issued under the authority of the Chiefs of the Defence Services HQ but were always issued by the Ministry of Defence, that is, the Government of India. ‘Orders’ such as Army Orders (AO) etc were (and are) issued by the Defence Services HQ under the power of the Chiefs. The new Pay Rules have been promulgated under the authority of Article 309 of the Constitution of India and are statutory in character rather than being mere executive instructions like was the case till now. With this, the pay rules of the Defence Services are at par with the statutory pay rules of the civil services which are also issued under the authority of Article 309 of the Constitution of India.

Defence Pay Matrix to have 40 stages

The 7th CPC had recommended only 24 stages in the defence matrix while 40 stages were provided to civilians. This anomaly has been rectified and now the defence pay matrix shall also have 40 stages. This will particularly be helpful for JCOs towards the retiring years and will also beneficially affect their pension and other retiral benefits.

Multiplication factor of 2.67

This anomaly had been rectified earlier for Brigadiers and a multiplication factor of 2.67 had been applied for the said rank. Now the same benefit has also been extended to Lieutenant Colonels, Directors to Government of India and Colonels, that is, Levels 12A and 13 of the Pay Matrix.

Other Anomalies

There shall be pay protection for the amount of Military Service Pay (MSP) on promotion from the rank of Brigadier to Major General. It may be recalled that MSP is not entitled to ranks above the rank of Brigadier. No decision has been taken by the Government on the aspect of Non Functional Upgradation till now since the matter is being considered sub judice. On directions of the Supreme Court, the Government is re-considering the issue of NFU for Central Armed Police Forces for which a meeting was recently held. The issue is to be considered by the Government and the fresh decision is to be placed before the Supreme Court in August 2017. The most pertinent anomaly of enhancement of Military Service Pay, especially for JCOs, also remains pending along with other matters and probably these issues would be clearer after various anomaly committees submit their reports and a decision is taken thereafter by the Cabinet. The committee on allowances has already submitted its report which will now be examined by the Government. Unlike pay and pension which are admissible retrospectively from 01 January 2016, most freshly rationalized allowances shall only be admissible prospectively.

This is all I have to say at present, please DO NOT mail me individual queries on email or social media. You are free to discuss the above @ the comments section of this post.

Thank You.

Source: Maj Navdeep Blog

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NCJA
National Joint Council of Action
4, State Entry Road, New Delhi — 110055

No.NJC/2016/7th CPC

August 12, 2016

To
All Constituents of NJCA

Dear Comrades,

We have been receiving communication from various organizations as also from individual employees after the promulgation of the notification by the Government on 7th CPC recommendations. Most of these communications had been to express the anxiety and in some cases anger too over the delay in setting up the high level committee, assured by the Group of Minister to review the minimum wage and multiplication factor.

We have been pursuing the said issue on a day to day basis and we are fully appreciative of the apprehensions expressed in many of these letters. Since the decision making in the Government is a long procrastinated matter involving various levels and departments, such delays are not uncommon. But we have been informed as to why the assurances held out have not been translated into action.

We have also noted that in the absence of the JCM functioning especially at the Departmental levels of various Ministries, the department specific anomalies and demands are not being subjected to any meaningful negotiations with the respective organizations. We have addressed the Cabinet Secretary to hold a special discussion with us on this subject immediately. Copy of our letter is enclosed.

On 12th August, 2016, we have met the Secretary Pensions to convey our strong resentment over the decision to allow the Option No. 1 given to the pensioners to be implemented subject to feasibility. We have reiterated that while we are open to discussion as to the methodology of verification of the claims of individual petitions in respect of Option No.1, we would not be able to countenance of the non implementation of the recommendation of the 7th CPC on the flimsy ground of non availability of records.

The available NJCA members met today at Delhi to review the situation in the background of the feeling conveyed to us through letters from various organizations. We have after taking note of the anxiety expressed and the ongoing discussions with various authorities over the setting up of the high level committee to wait up to the end of this month before we embark upon any action for the setting upon of the said high level committee. The employees may be apprised of this decision through the requisite campaign programme.

In the meantime, we must endeavour to support the one day strike action slated for 2nd September, 2016 for which the call has been given by the Central Trade Unions (including independent Federations) to the best of the ability of the respective organizations as the objective of the strike is the betterment of the working people in our country.

7th CPC Anomalies

All the Constituents Organizations are requested to forward the various anomalies arising out of the implementation of the 7th CPC notification / CCS (RP) Rules 2016 to the Staff Side office with brief / illustration etc. within in 15 days from today so as to enable us to study and forward the same to the Anomaly committee for settlement.

With greetings,
Yours fraternally,
(Shiva Gopal Mishra)
Convener

 http://confederationhq.blogspot.in/

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National Council (Staff Side)
Joint Cinsultative Machinery
for Central Government Employees
13-c, Ferozshah Road, New Delhi- 110001

Shiva Gopal Mishra
Secretary

No.NC-JCM-2016/7th CPC

August 12,2016

Shri Arun Jaitley,
Hon’ble Finance Minister,
Govt. of India,
North Block,
New Delhi

Sub: Setting up of a high level committee to review the Minimum Wage Multiplication Factor.

Ref: Our letter of even No. dated 26.7.2016.

Dear Sir,

We solicit your kind reference to the discussion, the representatives of NJCA had with you in the presence of the Honourable Home Minister, Shri Rajnath Singh and the Railway Minister, Shri Suresh Prabhu and the MOS (R) Shri Manoj Sinha on 30th June, 2016.

We were expecting a quick action on the part of the Government to operationalise the assurance of setting up a high level Committee to go into the Minimum wage, Multiplication factor etc. However, we are disappointed that even after a lapse of more than a month no order has been issued by the Government in this regard. The employees, as you are aware, were angry over the arbitrary determination of the minimum wage by the 7th CPC by mutilating the Dr. Aykhroyd formula and also the propornate multiplication factor.

We, therefore, appeal to you that the concerned authorities may be asked to expedite the issuance of orders setting up the committee and finalization of the Report within the available time of remaining three months.

Thanking you,

Yours faithfully,

sd/-
(Shiva Gopal Mishra)
Secretary

Click Here to Download Original Copy

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“On 30.06.2016, the NJCA was informed to meet Finance Minister and some ministers at Home Minister residence. Accordingly, few NJCA members met the ministers at 09.30 p.m. The views of NJCA and the disappointment of Central Government employees placed before them. Then Finance minister suggested out on the issue of minimum pay and multiplication factor may be referred to a committee. But NJCA leaders said that if any official meeting is convened or official communication issued, it may be placed before the NJCA and consider to meet and discuss otherwise, we do not agree and continue with our Strike proposal.”

CONTINUATION OF STRIKE ON 11.07.2016

INTUC
INDIAN NATIONAL DEFENCE WORKERS FEDERATION

R. Srinivasan
General Secretary

INDWF/Circular/025/2016

Date 05.07.2016

To
All Affiliated Unions of INDWF,
Office Bearers & Working Committee members of INDWF

Dear Colleague,

INDWF vide its circular No.24 Dt 28.06.2016 communicated to all our affiliated unions to continue the momentum generated, to hold demonstrations, rallies etc in all work places every day from 4th July, 2016 to 10th July, 2016 to intensify the Indefinite Strike w.e.f.11.07.2016 from 0600 Hrs as per the decision of NJCA.

After the Cabinet meeting of Government of India held on 29.06.2016 approved the 7th CPC recommendations without any change in the Empowered committee’s recommendations which has disappointed the Central government employees as a whole. The Cabinet further considered appointing committees for the following issues to a committee to decide within a period of 4 months.

1.)The commission examined a total of 196 existing Allowances and by way of rationalisation, recommended abolition of 51 Allowances and subsuming of 37 allowances. Given the significant changes in the existing provisions for allowances which may have wide ranging implications the cabinet decided to constitute a committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on allowances. The committee will submit its report within 4 months in a time bound manner. Till a final decision, all existing allowances will continue to be paid at the existing rates.

2) Cabinet decided to constitute two separate committees.

a) To suggest measures for streamlining the implementation of National Pension System (NPS).

b) To look into anomalies like to arise out of implementation of the commission’s report.

Main features of the adverse recommendations of VII CPC and cabinet approval.

Minimum pay increased from Rs.7000/- to Rs.18000/- only against Rs.26000/- increase of total pay on revision is 7000 + 125% of DA Rs.8750 =Rs.15750/-. Total minimum pay Rs.18000 —Rs.15750 = increase only Rs.2750/-. Out of Rs.2750/- 10% Pay towards NPS = Rs.1800 – balance Rs.950/- Total increase amounts only Rs.950/- for next 10 years. No increase in allowances, All interest free advances abolished. This has caused very serious discontentment among Central Government employees.

* CCL — 1st year 100% salary 2nd year only 80% salary

*Meagre increase in minimum pay.

*Fitment Factor is 2.57 to apply for pay revision.

* CGIES (insurance) no change.

* Rate of annual increment retained at 3%.

After the approval of VII CPC report by Government of India on 29.6.2016, the NJCA met on 30.06.2016 at Delhi and unanimously decided to continue the Indefinite Strike w.e.f.11.07.2016.

On 30.06.2016, the NJCA was informed to meet Finance Minister and some ministers at Home Minister residence. Accordingly, few NJCA members met the ministers at 09.30 p.m. The views of NJCA and the disappointment of Central Government employees placed before them. Then Finance minister suggested out on the issue of minimum pay and multiplication factor may be referred to a committee. But NJCA leaders said that if any official meeting is convened or official communication issued, it may be placed before the NJCA and consider to meet and discuss otherwise, we do not agree and continue with our Strike proposal.

Then the NJCA met on 01.07.2016 again the above views were adopted and decided to meet on 06.07.2016 awaiting for any official communication from the Government of India.

Hence, it is intimated to all our affiliated unions, the attitude of Government of India without holding any discussions and not willing to settle the demands through mutual discussions and deciding unilaterally ignoring the National Council JCM is considered a highly objectionable and not agreeable. Thus, NJCA decided to proceed with our decision to commence Indefinite Strike w.e.f.11.07.2016 from 6.00 a.m. onwards.

Any progress before 10.07.2016 takes place, it will be accordingly intimated but till such time you have to proceed with all action for the success through Indefinite Strike.

Yours Sincerely,

Sd/-
(R.SRINIVASAN)
General Secretary

Source: INDWF

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“Members of the National Council JCM, which represents over 40 lakh Central Government employees all over India, met with the team of higher officials of the 7th Central Pay Commission on 9.6.2015”

It was revealed that the meeting with the 7th CPC was very satisfactory. By the end of August, the committee will submit its recommendations and from Jan 2016, the new pay scale, including all the allowances, will be implemented based on this report.

Elaborate discussions were held on crucial issues like Principles of wage determination and Minimum Wage & Ratio of Minimum and Maximum Pay. Also, popular demands like qualification related pay scales, and grant of increment to those retiring on June 30 and December 31, were also presented.

Issues over the fixing of pension parity between past and future pensioners. And the discrepancies in these methods and retirement benefits including revision of pension were also discussed.

JCM urged that the Need-Based Minimum Wage concept to compute pay at the minimum level may be adopted. Pay Commission should take into account the outside rates to determine the pay package at senior levels of bureaucracy but maintain the ratio between the minimum and maximum at 1 : 8 (MTS to Secretary to Govt. of India).

Staff side demanded open- ended pay scales to ensure that no employee stagnates without increment. We have suggested only 14 Pay scales. Minimum of which is Rs. 26000 and Maximum Rs. 78000 for Group C employees. We suggested that the multiplication factor (26000/7000 = 3.7) may be applied uniformly in all the cases to arrive at the revised pay in the new scales of pay. We also suggested that the benefit on promotion, therefore, should be: two increments in the feeder cadre.

A request was made to rectify the defects in the MACP scheme. NC JCM insists to grant five promotions in the service career. It should be given on their hierarchical basis.

Staff Side requested to remove the ceiling of Rs.3500 and request to recommend to the Central to grant the bonus on the basis of the actual emolument of the employee.

The JCM demanded for Educational Assistance for two children, instead of two eldest children, and also to pay the same for Post Graduate and Professional Courses.

The National Council requested to the 7th CPC to review and recommend the scarping of NPS in the light of the observations made by Hon’ble supreme court that pension is a fundamental justify.

Source: http://www.cgstaffnews.in

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