In its report submitted to the Union Finance Minister Arun Jaitley on Thursday, the Seventh Central Pay Commission has recommended an overall increase of 23.55 per cent in pay, allowances, and pension for government employees.
“This will impact 47 lakh employees and 52 lakh pensioners. The total monetary impact on the central government would be Rs 1.02 lakh crore. Around Rs 74,000 crore would be the impact on the Union Budget and Rs 28,000 crore on the Railway Budget,” Mr Jaitley said at his residence after he received the report from Justice A.K. Mathur, Chairperson of the Commission. Mr Jaitley said the impact of the recommendations amounts to 0.6 per cent of GDP, adding that while the government would review the report soon, the State governments would take their own view on it.
Justice Mathur said, “My only consideration was to make the service condition of all the service employees ameliorating so that they may perform their duty without worrying about their butter and bread.”
However, the Central Government employees are not happy and they feel cheated.
The NJCA, in the meeting held at Delhi on the 20th of November 2015, termed it as the worst recommendations ever made by any previous pay commission. The following is the briefing of the meeting.
WORST RECOMMENDATIONS EVER MADE BY ANY PREVIOUS PAY COMMISSION
ONLY 14.29% INCREASE IN PAY AFTER 10 YEARS (EQUAL TO TWO DA INSTALLMENTS)!
50 LAKHS CENTRAL GOVERNMENT EMPLOYEES AND DEFENCE PERSONNEL CHEATED & DECEIVED.
HOLD PROTEST DEMONSTRATIONS ALL OVER THE COUNTRY,
IMPORTANT RECOMMENDATIONS
DATD OF EFFECT – 01.01.2016
JCM Staff Side demand – 01.01.2014 – Rejected
MINIMUM PAY – 18000
JCM (SS) demand – 26000 – Rejected
Dr. Aykroyd Formula of 15th Indian Labour Conference for calculation of Minimum wage distorted by 7th CPC to deny the eligible minimum pay.
FITMENT FORMULA – 2.57 TIMES
JCM (SS) demand – multiplication factor 3.7 (26000/7000)
FIXATION ON PROMOTION – NO CHANGE – ONLY ONE INCREMENT IN THE OLD SCALE
JCM (SS) demand – Minimum two increments fixation.
ANNUAL INCREMENT – 3% NO CHANGE
JCM (SS) demand – 5%
MODIFIED ASSURED CAREER PROGRESSION – NO CHANGE – 10, 20, 30
Conditions made more stringent. Bench mark “Very Good” required instead of “good”. Examination for MACP proposed. Hierarchial promotion restored.
JCM (SS) demand: Five promotion – 8,7,6,5,4 (30 years)
PAY BAND, GRADE PAY SYSTEM ABOLISHED
New Pension Structure called “Matrix based open ended pay structure” recommended. Total span of the scale 40 years.
JCM (SS) demand: Abolish pay band, Grade Pay system and open ended pay scales should be introduced.
MAXIMUM PAY INCREASE – 14.29%
JCM (SS) demand – Minimum 40% increase for all employees.
COMPARISON BETWEEN MINIMUM AND MAXIMUM PAY – 1:11.4 (18000 : 205400)
Demand of the JCM (SS) – 1:8
NUMBER OF PAY SCALES – NOT REDUCED – NO DELAYERING
JCM(SS) demand – pay scales with grade pay 1900, 2000, 4600, 8700 and the pay scale 75500-80000 to be abolished.
ALLOWANCES – NO IMPROVEMENT
Commission recommended abolition of 52 existing allowances such as Assisting Cashier Allowance, Cash Handling Allowance, Treasury Allowance, Handicapped Allowance, Risk Allowance, Savings Bank Allowance, Special compensatory (Hill Area) Allowance, Cycle Allowance, Family Planning Allowance etc.
HRA REDUCED TO 24%, 16% AND 8% FOR X, Y AND Z CITIES
JCM (SS) demand – Existing HRA of 30% (for X class cities with population 50 lakhs and above), 20% (for Y class cities with population of 5 lakhs to 50 lakhs) and 10% (for Z class cities with less than 5 lakhs population) may be increased to 60%, 40% and 20%.
DRIVERS – HIGHER PAY SCALE REJECTED
DA FORMULA – NO CHANGE
HBA – NO CHANGE – CEILING RAISED TO 25 LAKHS
CASUAL LEAVE – NO INCREASE
CHILD Care Leave
1st 365 days – Full pay (100%)
Next 365 days – 80% Pay only.
MATERNITY LEAVE – NO CHANGE
LEAVE ENCASHMENT AT THE TIME OF RETIREMENT – NO INCREASE MAXIMUM 300 DAYS ONLY
MEDICAL
Medical Insurance Scheme for serving and retired employees recommended.
TRANSPORT ALLOWANCE – NO HIKE – ONLY 125% MERGER
Pay Level Higher Transport Allowance cities (A, AI) Other places
9 and above 7200 + DA 3600 + DA
3 to 8 3600 + DA 1800 + DA
1 and 2 1350 + DA 900 + DA
LEAVE TRAVEL CONCESSION (LTC) – NO CHANGE
One time LTC to Foreign Country during the service rejected. Splitting of Home Town LTC for employees Posted in North East, Laddakh, Andaman & Nicobars and Lakshdweep allowed.
ACCOUNTS STAFF BELONGING TO UNORGANIZED ACCOUNTS – PARITY WITH ORGANISED ACCOUNTS REJECTED.
PERIODICAL REVIEW OF WAGES (NOT TEN YEARS) RECOMMENDED. NO PAY COMMISSION REQUIRED
PERFORMANCE RELATED PAY SHOULD BE INTRODUCED IN GOVERNMENT SERVICES AND ALL BONUS PAYMENT SHOULD BE LINKED TO PRODUCTIVITY.
JCM (SS) demand – No Performance related Pay. Productivity Linked Bonus for all.
COMPULSORY RETIREMENT AND EFFICIENCY BAR REINTRODUCED
Failure to get required bench mark for promotion within the first 20 years of service will result in stoppage of increment. Such employees who have out lived their ability, their services need not be continued and the continuance of such persons in the service should be discouraged.
PROMOTEE AND DIRECT RECRUITS – ENTRY LEVEL PAY ANOMALY IS REMOVED
JCM (SS) demand – the differential entry pay between new recruits and promoted employees should be done away with.
CADRE REVIEW TO BE COMPLETED IN A TIME BOUND MANNER.
Commission recommended to hasten the process of cadre review and reduced the time taken in inter-ministerial consultations.
NEW PENSION SCHEME – WILL CONTINUE
CEA & HOSTEL SUBSIDY
Rate
CEA per month 2250 – 25% increase when DA crosses 50%
Hostel subsidy 6750 – 25% increase when DA crosses 50%
GROUP INSURANCE SCHEME
Level Monthly Contribution Insurance Amount
1 to 5 1500 15 Lakhs
6 to 9 2500 25 lakhs
10 and above 5000 50 lakhs
PENSIONARY BENEFITS
PENSIONERS – PARITY – LONG STANDING DEMAND OF THE PENSIONERS ACCEPTED
Commission recommends a revised Pension Formulation for Civil employees and Defence Personnel who have retired before 01.01.2016. (expected date of implementation of seventh CPC recommendations). This formulation will bring about complete parity of past pensioners with current retirees.
PENSIONERS – MINIMUM PENSION RS. 9000/-
(50% of the minimum pay recommended by the 7th CPC)
PENSIONERS – GRATUITY CEILING RAISED TO 20 LAKHS
PENSIONERS – FIXED MEDICAL ALLOWANCE (FMA) – NO CHANGE (RS. 500/-)
CGHS FACILITIES TO ALL POSTAL PENSIONERS RECOMMENDED
33 Postal dispensaries should be merged with CGHS
GRAMIN DAK SEVAKS (GDS) OF THE POSTAL DEPARTMENT DEMAND FOR CIVIL SERVANTS STATUS REJECTED
Recommendation: – The committee carefully considered the demand for treating the Gramin Dak Sevaks as civil servants at par with other regular employees for all purposes, and noted the following:
(a) GDS are Extra-Departmental Agents recruited by Department of Posts to serve in rural areas.
(b) As per the Recruitment Rules the minimum educational qualification for recruitment to this post is class X.
(c) GDS are required to be on duty only for 4 to 5 hours a day under the terms and conditions of their service.
(d) The GDS are remunerated with Time Related continuity Allowance (TRCA) on the pattern of pay scales for regular Government employees plus DA on pro-rata basis.
(e) A GDS must have other means of income independent of his remuneration as a GDS to sustain himself and his family.
Government of India has so far held that GDS is outside the Civil Service of the Union and shall not claim to be at par with the Central Government Employees. The Supreme Court Judgment also states that GDS are only holder of Civil posts but not civilian employees. The Commission endorses this view and therefore has no recommendation with regard to GDS.
(M. Krishnan)
Secretary General
Confederation
Source: Central Government News
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