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7th Pay Commission: Cabinet to decide on central government employee allowances

admin — Wed, 10 Aug 2016 04:38:53 +0000

7th Pay Commission: Cabinet to decide on central government employee allowances

Arun Jaitley says cabinet to decide on suggestions of a committee set up to look into allowances for allowances under 7th Pay Commission

New Delhi: The Union cabinet will take a decision on the suggestions of a special committee, which has been set up to look into the provision of allowances under the Seventh Central Pay Commission recommendations, finance minister Arun Jaitley said on Tuesday.

Replying to a question on the pay commission in Rajya Sabha, the minister said the government has decided that the recommendations on allowances for central government employees, other than dearness allowance, will be examined by a committee headed by the finance secretary as chairman, and secretaries of home affairs, defence, health and family welfare among others as its members.

The committee, which was constituted on 22 July, has been asked to submit its report within four months. Its first meeting took place on 4 August. “As far as allowances are concerned, 51 have been abolished while 37 have been subsumed. As the measures are radical in nature, even the employees’ unions have given their suggestions in the matter and therefore a special committee has been formed to look into it. Whatever the committee decides, it will go to the cabinet,” Jaitley said.

The matters relating to pay and pension as decided by the government have been implemented with effect from 1 January this year.

PTI

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Hidden facts about 7th Pay Commission Implementation

admin — Fri, 22 Jul 2016 04:54:33 +0000

Hidden facts about 7th Pay Commission Implementation

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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Finance Ministry invites NJCA to discuss over 7th pay commission recommendation on 19.2.2016

admin — Tue, 16 Feb 2016 11:52:56 +0000

Finance Ministry invites NJCA to discuss over 7th Pay commission recommendations on 19.2.2016

The Official Sources Close to the Finance Ministry told that a Meeting with National Joint Council of Action to be held on 19th February 2016 on the issues of 7th Pay Commission and Charter of Demands of NJCA.

It is informed that Convener, 7th Pay Commission Implementation Cell has fixed Meeting with NJCA on 19th February 2016 at North Block to discuss about the matters pertaining to 7th CPC recommendations and Charter of Demands of NJCA. The timing of the meeting scheduled itself has reveals its importance.

It is expected that, since the Meeting is scheduled before the Budget Session, some news about implementation of 7th pay commission may be announced in Budget or at least we are able to know the latest development about 7th cpc implementation after the Meeting.

An internal meeting of NJCA will also be held on 18.2.2015 before they attend the meeting with Finance Ministry.

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7th Pay Commission – Advantages to Government or Employees?

admin — Tue, 20 Oct 2015 08:26:45 +0000

7th Pay Commission – Advantages to Government or Employees?

The Central Government employees are scheduled to get salary hikes on the basis of the recommendations by January 1, 2016. According to sources, the house rent allowance too would see an increase by 20 per cent. But the most significant recommendation is that 5 to 6 per cent of the annual increment would be performance-based. There is also likely to be a provision of retiring under-performing employees by the age of 55 or 30 years of service, whichever is more.

The Finance ministry has already opened its stand saying, the Seventh Pay Commission will be mindful of the fiscal concerns of the government while giving its report on new pay scales and remunerations for central government employees and pensioners.

So the question which arises in everybody’s mind is, for whom the 7th Pay Commission is for? Is it for the Central Government employees or for the Government? For Whose benefit is it working?

For example there is a rumour floating around that the CGHS facility is going to take its last breath after 7th CPC. The Seventh Pay commission is planning to propose health insurance scheme to replace Central Government Health Scheme (CGHS) at highly subsidized rates.

The pay panel will ask the central government to urge the insurance industry to come up with feasible health insurance solution for the central government employees and pensioners. The IRDA, the insurance regulatory body of India, will be compelled to ask the health insurance companies to offer a basic insurance to every central government employee and pensioner, regardless of age or medical condition and will not be allowed to make a profit of this basic insurance.

Health insurance would be available for central government employees and pensioners till death, the insured employees and pensioners will have to pay 50% of the premium from their salaries and pensions and the remaining 50% premium may be paid by the central government.

The CGHS is financed mainly through the Centre’s tax revenues. Though beneficiaries do contribute a share of their wages towards premium, ranging from Rs 600 to Rs 6,000 a year depending on their pay scale, this accounts for just about 5 per cent of the total expenditure. The government shells out the remaining 95 per cent.

However, now the Government is looking for ways to end the CGHS in its current form and to move to an insurance based health scheme to cut costs.

Recently, the CG Employee’s Welfare Ministry released an announcement which has created confusion and fury among the CG employees.

In the announcement it has been said that the senior officials have to analyse the service record and decide whether employees who have completed thirty years of service or reached their 50th year should continue their service or be advised to leave service after three months notice.

Does it take a management to learn that an official or an employee is unfit to continue in service when he has reached his 50th year? Does it take thirty years of continuous service to assess the efficiency of an employee?

Then what is the need for a probation period? After serving the Government for 30 years or till his 50th year, if somebody is asked to quit just like that, giving some damn reason when he is old, appears rather inhumane.

Unlike in the private sector, the pay hike in government is a once-in-10-years-affair. The Government need not and should not compare the Government employees with the private sector. The private sector works on profit mode, but the government organisations work in the service mode.

The NJCA at the Meeting of the Confederation held at Hyderabad on 09th October 2015 while endorsing the decision of the National Joint Council of Action (Railway, Defence & Confederation) to organize massive protest dharna at Jantar Mantar, New Delhi on 19th November 2015 and also Nationwide Protest Demonstration in front of all works spot & offices, has decided to further intensify the protest action against the negative attitude of the Government for the Unwarranted intervention of the Finance Ministry in the independent functioning of the Pay Commission by issuing a statement asking the 7th CPC to factor into its report the fiscal concern of the government and thereby to pressurize the commission not to recommend wage rise on the basis of a sound and scientific formulation and Causing engineered delay by the Government in the submission of 7th CPC report by granting four months extension upto 31st December 2015, even when the Pay Commission was ready to submit its report within the stipulated time i.e. 28th August 2015.

Source : GConnect.in

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One Rank One Pension & Separate Pay Commission for Armed Forces: Important Lok Sabha Discussion dated 13 July 2009

admin — Mon, 05 Aug 2013 16:21:26 +0000

One Rank One Pension & Separate Pay Commission for Armed Forces: Important Lok Sabha Discussion dated 13 July 2009

Fifteenth LokSabha

Q.NO. 126, Date :13.07.2009

Session No : 2

Member Name: ASADUDDIN OWAISI

Ministry Name: DEFENCE

Subject: ONE RANK ONE PENSION FOR DEFENCE PERSONNEL

TITLE : Madam, I would like to thank the Government for accepting the Committee’s proposal. The Reply given by the Government mentions about the revision of Lt. Generals’ pension after carving out a separate pay scale for them. What would be the pay scale because post 1st January, 2006, a Lt. General used to get Rs. 30,190? This is my first Supplementary.

PARTICIPANTS : MANISH TEWARI , ASADUDDIN OWAISI , SUSHMA SWARAJ

ANSWER : A.K. Antony , Mallipudi Raju Pallam Mangapati

SHRI ASADUDDIN OWAISI (HYDERABAD): Madam, I would like to thank the Government for accepting the Committee’s proposal. The Reply given by the Government mentions about the revision of Lt. Generals’ pension after carving out a separate pay scale for them. What would be the pay scale because post 1st January, 2006, a Lt. General used to get Rs. 30,190? This is my first Supplementary.

SHRI M.M. PALLAM RAJU: Madam, the starting pay for the Lt. General is Rs. 67,000/- to Rs. 79,000/- which has been created.

SHRI ASADUDDIN OWAISI (HYDERABAD): Madam, in reply to the question that has been put forward, the Government has agreed to set up a separate Pay Commission for the Armed Forced in future. Can the hon. Minister say that at what point of time would this separate Pay Commission be formed?

SHRI M.M. PALLAM RAJU: Madam, directive towards this effect for forming a separate Pay Commission for the Armed Forces has been sent out from the Prime Minister’s Office and as and when the necessity for the Central Pay Commission comes about, the separate Pay Commission for the Armed Forces also will be set up.

SHRI MANISH TEWARI (LUDHIANA): Madam, I would like to ask the hon. Minister one question. Would it be correct to summarize the position on One Rank One Pension as follows: that there is full parity between pre and post 1.1.1986 Defence retirees? There is full parity between pre and post 10.10.97 persons below Officer Rank retirees and there is a modified parity between persons below officer rank retiring before 1.1.2006 and after 1.1.2006. Would that be correct summarization of the position on One Rank One Pension?

THE MINISTER OF DEFENCE (SHRI A.K. ANTONY): Madam, in the answer itself we have clarified the position. We have clarified about five categories. The main thing is that regarding three categories, there is immediately direct benefit. PBORs are the largest number in the Armed Forces – out of 12 lakh people in the Armed Forces, nearly 95 per cent are PBORs. Now, after this decision by the Government, the PBORs pension will increase substantially – minimum Rs. 800 and maximum Rs. 1,400 at the PBORs level. Some of the Commissioned category Officers also will be benefited.

Madam, there was a difference in the Lt. Generals’ pension. A Committee was also formed regarding the Lt. Generals’ pension. They will be also getting a substantial increase in the pension.

As far as other things are concerned, still we have our own practical difficulties and because of that the Committee was not able to recommend complete agreement regarding the One Rank One Pension. But this decision is now almost nearer to the goal of One Rank One Pension.

SHRI A.K. ANTONY: Madam, not only three, five positions were clarified in the answer itself. We have answered the question very clearly about the five categories.… (Interruptions)

SHRIMATI SUSHMA SWARAJ (VIDISHA): It is creating confusion. That is why, I am asking.… (Interruptions)

SHRI A.K. ANTONY: There is no confusion.… (Interruptions)

Source: Lok Sabha Supplementary Question List

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