Showing posts with label 7th pay commission. Show all posts
Showing posts with label 7th pay commission. Show all posts

Monday, December 21, 2015

Performance is the main constraint on Annual Increment in 7th CPC



Withholding Annual Increments of Non-performers after 20 Years

There is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course. The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted. This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.


The Commission is therefore proposing 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.

This will act as a deterrent for complacent and inefficient employees. However, since this is not a penalty, the norms for penal action in disciplinary cases involving withholding increments will not be applicable in such cases. This will be treated as an “efficiency bar”. Additionally, for such employees there could be an option to leave service on similar terms and conditions as prescribed for voluntary retirement.

Recommendations on Family Planning Allowance in 7th CPC Report


Family Planning Allowance

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.

7th Pay Commission Report on Leave Encashment of EL



Enhancement of ceiling of Earned Leave for purposes of Leave Encashment

The Commission has received representations seeking raising the ceiling limit of 300 days to 450 days for purposes of Leave encashment.



Analysis and Recommendations : The Commission notes that based on the recommendations of the VI CPC, serving employees are entitled for encashment of Earned Leave up to 60 days while in service. This is not to be deducted from the maximum number of Earned Leave of 300 days encashable at the time of retirement. The VI CPC, therefore, has further liberalised the regime of leave encashment.

The recommendations in relation to pay of both the civilian and defence forces personnel will also lead to a significant increase in the pay drawn and therefore in the total amount of leave encashment available for an employee.

Therefore raising the present ceiling of 300 days is not recommended by the Commission.

Authority: 7th CPC Report

Reduction in the time period for Restoration of Basic Pension



The Commission has received a number of representations requesting reduction of restoration period of commuted portion of pension from the existing 15 years.


Analysis and Recommendations : The Commission notes that prior to V CPC the commutation allowed was one-third. However, there was no restoration. The Supreme Court, vide their judgement dated 09.12.1986, allowed restoration of pension after 15 years. The Supreme Court in its judgement specifically stated that though the amount is recovered in 12 years, yet since there is a risk factor and some of the states are restoring pension after 15 years, the period of restoration is fixed at 15 years. 

The V CPC in its recommendation increased the percentage of commutation to 40 percent and recommended restoration period at 12 years. But the reduction of restoration period was not accepted by the government. The VI CPC did not recommend any change in the maximum percentage of commutation allowed or in the period of restoration.

This Commission also does not recommend any change either in the maximum percentage of commutation or in the period of restoration.

Authority: 7th CPC Report

Is attendance compulsory for Central Government employees on the implementation day (01.01.2016) of the 7th Pay Commission recommendations?



Central Government employees are wondering if there will be any consequences of taking leave on January 1, 2016, the date of implementation of the 7th Pay Commission report.

The recommendations of the 7th Pay Commission regarding the salaries and perks for the Central Government employees will come into effect from January 1, 2016 onwards. Many are curious to find out the connection between the date of implementation of 7th CPC and reporting to work on the day.

Normally, the date of joining work, date of getting the promotion, date of receiving the increments, transfer date, and retirement dates are very important for a Central Government employee. In the average service period of a Central Government employee, he/she is likely to witness two or three Pay Commissions. Keeping this in mind, it would be better to not absent oneself on January 1, 2016.
7th Pay Commission Pay Matrix Table Level 13, 13A and 14

We have given the table for the level from 13, 13A and 14 of Pay Matrix Table recommended by the 7th Pay Commission.

The hierarchy stages are given as index 1 to 40(vertical line) and the levels are given as numbers from 13, 13A and 14 (Horizontal line). And the difference between the stages are also shown in the table for your ready reference.


Source: http://7thpaycommissionnews.in/7th-cpc-pay-matrix-table-level-13-13a-and-14/
FOUNDER OF 'CENTRAL GOVERNMENT EMPLOYEES NEWS' TITLE AND KEYWORD... "90PAISA" - No.1 BLOG FOR CENTRAL GOVT EMPLOYEES AND PENSIONERS...!

7th Pay Commission Pay Matrix Table Level 10 to 12

We have given the table for the level from 10 to 12 of Pay Matrix Table recommended by the 7th Pay Commission.

The hierarchy stages are given as index 1 to 40(vertical line) and the levels are given as numbers from 10 to 12 (Horizontal line). And the difference between the stages are also shown in the table for your ready reference.


Source: http://7thpaycommissionnews.in/7th-cpc-pay-matrix-table-level-10-to-12/
FOUNDER OF 'CENTRAL GOVERNMENT EMPLOYEES NEWS' TITLE AND KEYWORD... "90PAISA" - No.1 BLOG FOR CENTRAL GOVT EMPLOYEES AND PENSIONERS...!
7th Pay Commission Pay Matrix Table Level 6 to 9

We have given the table for the level from 6 to 9 of Pay Matrix Table recommended by the 7th Pay Commission.

The hierarchy stages are given as index from 1 to 40 (shown in vertical line) and the levels are given as numbers from 6 to 5 (Horizontal line). And the difference between the stages are also shown in the table for your ready reference.


FOUNDER OF 'CENTRAL GOVERNMENT EMPLOYEES NEWS' TITLE AND KEYWORD... "90PAISA" - No.1 BLOG FOR CENTRAL GOVT EMPLOYEES AND PENSIONERS...!

7th Pay Commission Pay Matrix Table Level 1 to 5

We have given the table for the level from 1 to 5 of Pay Matrix Table recommended by the 7th Pay Commission.

The hierarchy stages are given as index 1 to 40(vertical line) and the levels are given as numbers from 1 to 5 (Horizontal line). And the difference between the stages are also shown in the table for your ready reference.


FOUNDER OF 'CENTRAL GOVERNMENT EMPLOYEES NEWS' TITLE AND KEYWORD... "90PAISA" - No.1 BLOG FOR CENTRAL GOVT EMPLOYEES AND PENSIONERS...!

Pay Matrix Table for Defence Personnel

FOUNDER OF 'CENTRAL GOVERNMENT EMPLOYEES NEWS' TITLE AND KEYWORD... "90PAISA" - No.1 BLOG FOR CENTRAL GOVT EMPLOYEES AND PENSIONERS...!
Pay Matrix Table for Central Government Employees

7th Pay Commission Fixation of Pay : Initial Appointment on or after 1.1.2016


7th Pay Commission Fixation of Pay : Initial Appointment on or after 1.1.2016

Fixation of Pay as per the recommendations of 7th Pay Commission : Initial Appointment on or after 1.1.2016 may be fixed as follows…

Seventh Pay Commission Recommendations on LTC Rules : Leave Travel Concession (LTC)



7th Pay Commission Recommendations on LTC Rules : Leave Travel Concession (LTC)

LTC is granted to Central Government employees to facilitate home travel as well as travel to different parts of the country. Presently two hometown visits are allowed in a block of four years with one hometown visit substitutable with “All India” visit. However, for the first two 4-year blocks, three hometown visits and one “All India” visit are permissible. LTC is not granted to an employee whose spouse is working in Indian Railways.


There are demands to increase the frequency of LTC, especially of the “All India” visit, and extend LTC to foreign countries also. Personnel posted on islands have requested the Commission that splitting of hometown LTC may be permitted so that their families can visit them from the mainland once a year and they (the employees) can also travel to the mainland once a year to visit the family. Personnel of Sashastra Seema Bal (SSB) have sought parity with other CAPFs for facility of Additional LTC. Railway employees have strongly represented that there are many places that are not connected by rail and in absence of LTC, they are not able to visit these places. Hence they should be allowed the facility of LTC in lieu of certain number of their free passes. Similar sentiments have also been expressed by employees whose spouses are Railway employees.

Analysis and Recommendations : Extension of LTC to foreign countries is not in the ambit of this Commission.

The proposal to split hometown LTC has merit and can be considered. Hence, 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. This will enable these employee and their families to meet more often.

Presently, personnel of Defence forces serving in field/high altitude/CI Ops areas are granted one additional free railway warrant. This should be extended to all personnel of CAPFs and the Indian Coast Guard mutatis mutandis.

The facility of Additional LTC should be extended to SSB personnel, at par with other CAPFs.

Regarding bringing Railway employees (and employees whose spouses are Railway servants) into the fold of LTC, the following is recommended:

a. No hometown LTC will be admissible to Railway employees, only “All India” LTC will be granted once in four years.
b. For the grant of LTC, all passes for the current year will have to be surrendered.
c. If the employee has already availed of a pass in any year, then LTC will not be allowed in that year.
d. If both spouses are Railway servants, then surrender of passes of any one of them will suffice.
e. For the purposes of this allowance, year means Calendar year.

Seventh Pay Commission Recommendations on Leave and Holidays



7th Pay Commission Recommendations on Leave and Holidays

7th CPC Leave Rules : 7th Pay Commission has recommended on Holidays and Leave for Central Government Employees and Offices…

Holidays and Leave : Presently Central Government offices observe a five-day week which results in 104 holidays every year on account of weekends. In addition, there are three National Holidays, fourteen Gazetted Holidays and two Restricted Holidays. Further, civilian government
employees are entitled to 8 days’ Casual Leave, 20 days’ Half Pay Leave (commutable to Medical Leave) and 30 days’ Earned Leave. Besides the above, quite a few other types of leave are admissible.


The following paragraphs bring out, in alphabetical order, the different kinds of holidays and leave admissible, demands received (if any) and views of the Commission on each one of them. Unless otherwise stated, the existing terms and conditions regulating these holidays and leave shall remain unchanged.

Casual Leave (CL) : Casual Leave is granted to enable a government servant to attend to sudden/unforeseen needs/tasks. Presently 8 days CL is normally granted to a Central Government employee per calendar year. The number goes up to 10 days for Industrial Workers, 20 days for Defence
Officers and 30 days for Defence PBORs. Certain other categories of staff, particularly in the Railways, are granted CL ranging from 11 to 13 days in a year. Demands have been made to increase the number of CL to 15 days for Industrial Workers and 12 days for other employees. CAPFs have also sought parity with defence forces in matters of Casual Leave.

Analysis and Recommendations : Regarding the number of Casual Leave, the Commission is of the view that the present system is working well and need not be altered. As far as the case of CAPFs for parity with defence forces is concerned, the Commission notes that CAPFs are essentially civilian forces and their service conditions are different from defence forces. Hence parity in terms of number of casual leave cannot be considered. To sum up, status quo is recommended.

Child Adoption Leave : This leave is granted to female employees, with fewer than two surviving children on valid adoption of a child below the age of one year, for a period of 135 days immediately after the date of valid adoption.

Analysis and Recommendations : No demands have been received regarding this leave. Accordingly, status quo may be maintained.

Child Care Leave (CCL) : Child Care Leave (CCL) is granted to women employees for a maximum period of two years (i.e., 730 days) during their entire service for taking care of their minor children (up to eighteen years of age). There are several demands relating to CCL which include converting
the same into “family care” leave, extending the facility to male parents and many representations stressing that it should be extended at least to single male parents. Suggestions have also been received that in cases where the child is differently abled, the clause stipulating that the child should be minor, should be done away with. Single mothers have highlighted their unique problems and requested the Commission for liberalising the grant of CCL. Interestingly, representations have also been made for discontinuance of the CCL, primarily on the grounds that it disrupts office working and also because it promotes gender discrimination.

Analysis and Recommendations : When CCL was first introduced by the VI CPC it generated considerable interest as it represented a positive measure benefiting women employees. It also took a while to stabilise and it is seen that as many as five amendments/clarifications were issued within a short period of time. As it stands, it is meant for women employees “for taking care of up to two children whether for rearing the children or looking after their needs like examination, sickness etc.” It is treated akin to Earned Leave and is sanctioned as such. It may not, however, be granted in more than three spells in a calendar year.

In the first two years of its implementation the experience was that women employees tended to treat this as Casual Leave or an extension of the same, and the resultant frequent absences caused disruptions at work. To address this, in September 2010, a clarification was issued stipulating that CCL may not be granted in more than three spells in a calendar year and also that it may not be granted for less than 15 days at a time. However, the latter stipulation was subsequently withdrawn and as per the latest clarification issued on 5 June, 2014 the government has decided to remove the requirement of minimum period of 15 days CCL. It has been brought to the notice of the Commission that the capping of maximum three spells in a calendar year has, to some extent, addressed the problems relating to disruption of work.

Notwithstanding that, in the course of discussions with various stakeholders, the sense that has come across is that what was introduced as a welfare measure to help employees in times of need, is seen as a benefit that has to be availed simply because it exists. There is, therefore, a palpable need to bring in some inhibiting feature so as to ensure that only genuinely affected employees avail of this scheme. Towards this end the Commission recommends that CCL should be granted at 100 percent of the salary for the first 365 days, but at 80 percent of the salary for the next 365 days. In making this recommendation the Commission has also kept in mind the fact the concept of a paid (whether 100% or 80%) leave solely for child care for a period of two years, is a liberal measure unmatched anywhere else.

The Commission notes that in the event a male employee is single, the onus of rearing and nurturing the children falls squarely on his shoulders. Hence extension of CCL to single male parents is recommended. Moreover, the Commission recognizes the additional responsibility on the shoulders of employees who are single mothers. Accordingly, it is recommended that for such employees, the conditionality of three spells in a calendar year should be relaxed to six spells in a calendar year.

Commuted Leave : Presently, Commuted Leave not exceeding half the amount of half-pay leave due can be taken on medical certificate. A demands have been made to do away with the need for medical certificate.

Analysis and Recommendations : The Commission does not find merit in the demand. Status Quo is recommended.

Earned Leave (EL) or Leave on Average Pay (LAP) : Presently 30 days EL per annum is granted to Civilian employees and 60 days to Defence personnel. EL can be accumulated up to 300 days in addition to the number of days for which encashment has been allowed along with LTC. Suggestions have been made to increase the accumulation to 450 days, allow encashment of 50 percent of the accumulated EL after 20
years of service and delink encashment of leave from LTC. A novel concept of “gifting” has been put forward, wherein employee should be allowed to ‘gift’ certain number of days of leave to one’s spouse or one’s colleague. “Vacational” staff like teachers, principals, etc. have demanded restoration of 10 days EL, which was changed to 20 days Half Pay Leave by VI CPC.

Analysis and Recommendations : In many organizations, employees are encouraged to take leave on the premise that it revitalizes them and is beneficial for the organization in the long run. Such a system is not prevalent in the government sector in India, but substituting leave with cash is also not desirable. Hence, no change in encashment guidelines is recommended.

The Commission recognizes that Earned Leave is, as the name suggests, earned by an employee through the services rendered. Hence, it is personal to the employee and the concept of “gifting” cannot be considered. The demand of “Vacational” staff can, however, be agreed to. Hence, it is recommended that “Vacational” staff be granted 10 days EL in place of 20 days Half Pay Leave. Other than this no other change is recommended.

Extra Ordinary Leave (EOL) : EOL is granted to a government servant when no other leave is admissible or when other leave is admissible, but the government servant applies in writing for extraordinary leave. This leave is neither debited to leave account nor is any leave salary paid. No demands have been received regarding this leave. Accordingly, status quo may be maintained.

Furlough Leave : This leave is admissible only to defence officers for up to 60 days. It can be availed at half pay, once in a cycle of three calendar years. No demands have been received regarding this leave. However, the Commission is of the view that Furlough Leave is a legacy of the pre Independence era. Since defence officers are already entitled to double the Earned Leave and more than double the Casual Leave available to civilian employees, there is no justification for continuation of Furlough Leave. Hence, it is recommended that Furlough Leave be abolished.

Half Pay Leave (HPL) or Leave on Half Average Pay (LHAP) : Presently, government employees are entitled to 20 days of Half Pay Leave for each completed year of service, credited @10 days on the 1st of January and 1st of July every year. There are representations that encashment of HPL should be allowed at the time of superannuation.

Analysis and Recommendations : The demands lack merit. Elsewhere in the report it has been recommended that 20 days HPL granted to “Vacational” staff be converted into 10 days EL. Hence, HPL will henceforth not be available to them. No change other than this is recommended.

Hospital Leave : This leave is granted to Group `C’ Railway employees if they are suffering from illness or injuries directly due to risks incurred in the course of official duties, on production of medical certificate. Full pay is admissible for first 120 days and half pay thereafter. The leave may be combined with any other kind of leave due and admissible, provided total period of leave does not exceed 28 months. Demands have been received to increase this leave to an unlimited period of time as applicable to PBORs of defence forces.

Analysis and Recommendations : This has been discussed under Special Disability Leave

Leave Not Due (LND) : LND is granted when the employee has no half-pay leave at credit and he/she requests for the grant of Leave Not Due. It is granted only on medical certification, if the leave sanctioning authority is satisfied that there is a reasonable prospect of the employee returning
to duty on its expiry. LND during the entire service is limited to a maximum of 360 days and will be debited against the half-pay leave that the employee may earn subsequently. No demands have been received regarding this leave. Accordingly, status quo may be maintained.

Maternity Leave : Maternity leave is granted to women government employees–up to 180 days for pregnancy and 45 days in the entire service for miscarriage/abortion. Maternity leave can be combined with any other leave upto two years without medical certificate. The Commission has received representations for enhancement of Maternity leave to 240 days with full pay and further 120 days with half pay.

Analysis and Recommendations : It is noted that Maternity Leave was raised from 135 days to 180 days and ‘period in continuation’ raised from 1 year to 2 years by the VI CPC. No further increase is warranted. Status quo is recommended.

Paternity Leave : Presently, a male employee with less than two surviving children may be granted Paternity Leave for a period of 15 days during the confinement of his wife, up to 15 days before or six months from the date of delivery of child. Paternity leave may also be granted to a
government servant with less than two surviving children on valid adoption of a child below the age of one year, within a period of 6 months from the date of valid adoption. There are demands to increase the period to 30 days.

Analysis and Recommendations : Present dispensation of 15 days is adequate. Status quo may be maintained.

Sick Leave : This leave is admissible to defence personnel only on account of sickness attributable/ aggravated due to service conditions. Full pay is granted for the entire duration of hospitalization. Beyond that, defence officers are allowed Sick Leave with full pay and allowances for first six months and fully pay only for next 18-24 months, while there is no such limit for PBORs. There are demands from CAPFs for complete parity with defence forces in respect of provisions of Sick Leave.

Analysis and Recommendations : Discussed under Special Disability Leave.

Special Casual Leave (SCL) : SCL is granted to employees to cover their absence from duty for various occasions like sports events, cultural activities, participation in Republic Day Parade, voluntary blood donation, Trade Union meetings, etc. Full pay is granted during SCL and it can be sanctioned with retrospective effect also. There are demands to extend SCL to organ donors till the time they are fit to resume duty.

Analysis and Recommendations : The Commission would like to express its concern at the widespread use of SCL as a means of getting away from duty. However, because of the extensive scope and case specific nature of this leave, no concrete recommendations can be made. The government may, however, consider the following suggestions:
1. Review the purposes for which SCL is presently granted.
2. Limit the number of purposes for which an employee can be granted SCL in a year.
3. Limit the total number of days that an employee can be granted SCL in a year.

Special Disability Leave : It is admissible to civilian employees when disabled by injury intentionally or accidentally inflicted or caused by or in consequence of the due performance of official duties or in consequence of official position held. Full pay is admissible for the first 120 days and half pay thereafter. The leave may be combined with any other kind of leave due and admissible, provided the total period of leave does not exceed 24 months. There are demands to remove the ceiling limit of 24 months–the duration of leave may be left to the discretion of doctor and full pay paid for the entire period.

Analysis and Recommendations : There are three different kinds of leave admissible to civilian/defence employees which are granted for work related illness/injuries–Hospital Leave, Special Disability Leave and Sick Leave. It is an established worldwide practice that employees who suffer illness/injuries that are attributable to/aggravated in the course of their duty need to be adequately compensated. However, due to the inherent difference between the nature of duties of civilians and uniformed forces, a distinction needs be made in the level of compensation provided. Having said that, there is some similarity in the risks faced by different uniformed forces, and consequently parity amongst them may be considered as far as this leave is concerned.

The following is, therefore, recommended:
1. Hospital Leave, Special Disability Leave and Sick Leave should be subsumed in a new Leave named Work Related Illness and Injury Leave (WRIIL).
2. Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.
3. Beyond hospitalization, WRIIL will be governed as follows:
a. For Civilian employees, RPF employees and personnel of Police Forces of Union Territories: Full pay and allowances for the 6 months immediately following hospitalization and Half Pay only for 12 months beyond that. The Half Pay period may be commuted to full pay with corresponding number of days of Half Pay Leave debited from the employee’s leave account.
b. For Officers of Defence, CAPFs, Indian Coast Guard: Full pay and allowances for the 6 months immediately following hospitalization, for the next 24 months, full pay only.
c. For PBORs of Defence, CAPFs, Indian Coast Guard: Full pay and allowances, with no limit regarding period.
4. In the case of persons to whom the Workmen’s Compensation Act, 1923 applies, the amount of leave salary payable under WRIIL shall be reduced by the amount of compensation payable under the Act.
5. No Earned Leave or Half Pay Leave will be credited during the period that employee is on WRIIL.

Study Leave : Presently, Study Leave may be granted to all government employees with not less than five years’ service for undergoing a special course consisting of higher studies or specialized training in a professional or technical subject having a direct and close connection with the sphere of his duties as a civil servant. It is limited to 24 months, except for CHS officers who are allowed 36 months. No demands have been received regarding this leave. Accordingly, status quo may be maintained.

7th Pay Commission recommendations are far beneficial than all the Pay Commissions so far except few flaws:


Financial benefits to be reaped by central government employees through the recommendation of seventh central pay commission are going to be in leaps and bounds :
Criticizing the recommendations of the VII Central Pay Commission without fully studying the report and jumping to the conclusion that the pay commission has done injustice to the central government employees is not fair.
The Seventh Central Pay Commission have done an excellent job by presenting the VII CPC Report within the scheduled time and without much anomalies that were vastly found in VI CPC Report. Abolition of Pay Band and Grade Pay System deserve appreciation. Pay matrix have been worked out with brilliance which provide minimum entry scale as well as fitment table for existing employees according to the increments drawn unlike the 3 methods of fixation adopted by VI CPC among new recruits, promotees and existing employees which caused great disparity and anomaly in pay fixation. The hike granted is also quite substantial which in fact is more than what VI CPC had granted.
While the increase granted by VII CPC actually come to 32% of the pre-revised existing Basic pay, the increase is projected as 15% wrongly by the media including the VII CPC in its comparison table which unnecessarily have been paving the way for resentment and unrest among the central government employees who would not have fully studied the report. While projecting the percentage of increase the VI CPC,had taken into account only the basic pay . Whereas the VII CPC had reckoned D.A. element also to project the percentage of increase which gives a wrong picture of around 15% hike.
A clear analysis of the recommendations shall throw insight on the vast financial benefits that the central government servants are going to reap for years to come. Let me analyse the salient features of the recommendations thread bare in an unbiased mind to present a true picture:
1. Basic Pay: The VII CPC has arrived at a factor of 2.57 for multiplication with the pre-revised pay and pay band to arrive at new Basic Pay. While the pre-revised Pay in the pay band and Grade Pay is to be deemed as 100%, the D.A. as on 1/1/2016 constitute 125% totaling to 225% in other words 2.25 factor. This is the actual Pay, Grade Pay and D.A, a government servant would be drawing as on 1/1/2016 under the VI CPC pay pattern. The VII CPC added 32% hike uniformly to all the employees as fitment benefit to the existing pay and grade pay and raised it to 257% or 2.57 factor.
What is to be noted here is although the VI CPC had granted 40% of the maximum of the basic pay scale of the pre-revised V CPC pay as fitment benefit and shown it separately as Grade Pay, yet the present hike of 32% in pay and grade pay is more than that because the existing basic pay containing pay and grade pay already contain 1.86 factor +40% fitment benefit offered by V CPC i.e. 72% D.A as on 1/1/2006, in other words 86% D.A as on 1/1/2006(i.e 50% Dearness Pay and 24% DA and 24% D.A on 50% D.P which come to 12% totaling to 86% plus Grade Pay of 40% totaling to 226 or 2.26 factor Therefore virtually 32% of increase presently granted by VII CPC on the 6th CPC Pay consisting of 1.86 factor plus Grade Pay of 40% totaling to 226 or 2.26 factor actually come to 72.32% hike (226 x 32% = 72.32%) when we have to compare the hike of VII CPC with VI CPC and in terms of the amount.
2. Dearness Allowance: The VII CPC had rightly added 6% D.A. notionally for the period 1/7/2015 to 31/12/2015 to the existing 119% D.A and merged 125% of D.A. on the pre-revised pay and Grade Pay in its revised Basic pay. What is more – the future D.A payable every 6 months as per the All India Consumer Price Index is going to be calculated retaining the same formula of 115.76(Base year 2001=100). Continuance of D.A calculation formula as per the existing rate for the revised Basic Pay which include 125% of D.A as on 1/1/2016 and 32% fitment benefit certainly is going to increase the salary level hugely as the D.A. increase every 6 months may continue to be in the range of 6% to 7%.
3. House Rent Allowance: Although the existing percentage of HRA has been reduced to 0.8 factor i.e. to 80 percent which comes to 24%, 16% and 8% for the X, Y and Z cities respectively, yet there is more than 100% increase in the present HRA rate as a result of payment of HRA on the revised basic pay which include 125% D.A. and 32% fitment benefit totaling to 257 or 2.57 factor. The percentage of increase of HRA come to 61.68% of the existing pre-revised pay and grade pay for X cities which carry only 30% at present(257 x 24%=61.68). The HRA come to 41.12% of the existing pre-revised pay and grade pay for Y cities which carry only 20% at present(257 x 16%=41.12).. Similarly the HRA come to 20. 56% of the existing pre-revised pay and grade pay for Y cities which carry only 10% at present(257 x 8%=20.56).. Thus the present hike in HRA is more than 100% of the existing HRA amount drawn. Further when D.A crosses 50% HRA will be raised to 27%, 18% and 9% and when D.A. crosses 100% HRA will be raised to 30%, 20% and 10%. It must be seen that HRA rate recommended by VII CPC at present itself is very huge.
4. Transport Allowance: 125% of D.A. as on 1/1/2016 have been merged to the existing slab and revised Transport Allowance slabs have been arrived at on exact basis. For example the Transport Allowance after merger of D.A to the existing slab of Rs.3200, 1600 and 600 gets raised to 7200, 3200 and 1350 respectively. Further The D.A gets added once in every 6 months as per the CPI index. Therefore there will be steep increase in Transport Allowance amount every 6 months as the D.A rate enhances.
5. Annual Increment: Retaining 3% increment is quite okay because the 3% increment is granted on revised basic pay which constitute pay, grade pay D.A. at 125% and 32% hike in the existing basic pay as fitment benefit. Of course the benefit is marginal only from the existing monetary benefit that accrue on increment.
6. Children Education Allowance: Hiked by 25% i.e. to Rs.2250 per month with simiar rise in hostel fee.
7. Child Care Leave: Recommended for single male parent also. 80% salary for the next 365 days of the total 730 days is a welcome measure to discourage misuse of Child Care Leave.
8. House Building Advance raised from a meager limit of 7.5 lakhs to 25 lakhs
9. Group Insurance Schme: Increasing Group Insurance limit to such a stupendous level of Rs.50.00 lakhs, 25 lakhs and 15 lakhs shall provide adequate succor to the bereaved family of the government servants who die while in service.
10.Retirement Benefits:
i. Pension: 32% hike in the basic pension(2.57 factor) with one more option for ensuring equal pension for equal number of years of service as in the case of defence which perhaps was not demanded by any central government employees forum is a milestone of the recommendation.
ii. Gratuity: Retention of Gratuity at 16.5 months of revised basic pay and D.A . shall increase the take home gratuity amount. Doubling of Gratuity amount from Rs.10.00 lakhs to Rs.20.00 lakhs with provision for raising the Gratuity limit by 25% when D.A. crosses 50% i.e. to Rs.25 lakhs is a great relief to middle level and higher level employees whose remuneration for 16.5 months are much higher than the existing Rs.10.00 lakhs and who would be saved from losing several lakhs as a result of enhancement of gratuity limit.
iii. Commutation of Pension: Retention of Pension commutation at 40% of the revised basic pension which stands increased by 2.57 times as a result of merger of 125% D.A and 32% fitment benefit shall correspondingly increase the take home pension commutation by 2.57 times. For example, an employee who may be otherwise getting only Rs.5.00 lakhs as pension commutation on the existing Pay+Grade Pay under VI CPC recommendation, may get Rs.12.85 lakhs as pension commutation under VII CPC recommendation.
iv. E.L. encashment: Retention of E.L encashment at the existing 300 days is also a welcome gesture.
Surely there will be 60 to 70 percent increase in the overall take home retirement benefits when compared to the existing retirement benefits
All these monetary benefits recommended by the VII Pay Commission, shall definitely provide an insight about the genuine concern of the Hon’ble Chairman and the Members of the VII Pay Commission to improve the financial situation of the central government employees. The criticisms raised against the Pay Commission’s recommendations are totally unwarranted.
SOME FLAWS OBSERVED IN THE RECOMMENDATIONS WHICH NEED RECTIFICATION BY GOVERNMENT:
1. Retention of 3% increment on basic pay in case of promotion leads to lower financial benefits than the existing benefits:
In the matter of increment on promotion, the Chairman and the Members of the VII CPC have erred, since the financial benefit would be much lower than what a government servant would have got under VI CPC recommendation on promotion, because the existing benefit on promotion carry change in grade pay apart from 3% increase in Pay+Grade Pay. The following illustration shall show the huge difference:
Suppose an employee whose Pay is Rs.24210/- and the Grade pay is Rs. 5400 totalling to Rs.29610(in the Pay band of 15600-39100), gets his next promotion to the Grade Pay of Rs.6600/- he will be entitled to the following hike in total remuneration under the existing VI CPC recommendation:
Rs.29610 x 3% increment =Rs.890
Difference in Grade Pay from Rs.5400 to Rs.6600= Rs.1200
Total increase of increment in basic pay and Grade Pay= Rs.2090
D.A. at 125% as on 1/1/2016 on Rs.2090 = Rs.2613
HRA at 30%(assuming X city) on Rs.2090 =Rs.627
Total monetary benefit = Rs.5330/-
Whereas the net monetary benefit under VII CPC recommendation, as a result of promotion in the above case will be much lower than the above illustraion as shown under:
Equivalent Basic Pay for Rs.29610 come to Rs77700 as per pay matrix
Rs.77700 x 3% increment =Rs.2331(rounded to 2300)
D.A. at 0% as on 1/1/2016 on Rs.2300 = 0
HRA at 24%(assuming X city) on Rs.2300 =Rs.552
Total monetary benefit = Rs.2852/-only as against the existing Rs.5330/- leading to shortage of Rs. 2478/- This is a big blunder committed by the VII Pay commission.
Therefore the increment on promotion should be atleast 5 to 6% to bring the benefit of increment on promotion to the existing level.
2. Non recommendation for merger of 50% of D.A. with basic pay when D.A. crosses 50% is a great disappointment:
The long standing demand of the central government employees for merger of 50% D.A with basic was not implemented by the government on the excuse that the VI CPC had not made such a proposal. The VII CPC is totally silent about this aspect. It appears no one has demanded the same before the VII CPC for consideration.
It is quite surprising that such a vital issue of non-recommendation of merger of D.A with basic pay when D.A crosses 50% is not being opposed by any central government associations or pointed out by the the media. Had it been recommended by the VII CPC, the government would have implemented the same and the benefit of hike in salary as a result of merger of D.A with basic when it cross 50%, would be so vast that no government servant would crave for a need for timely setting up of next VIII Central Pay commission.
3. Disparity in fitment factor among existing and new recruits at various pay levels: The grant of higher percentage of fitment benefit to new recruits at 2.62 factor(37% increase on Pay+Grade Pay), 2.67) factor(42% increase on Pay+Grade Pay) and 2.72 factor(47% increase on Pay+Grade Pay) etc., is reminiscent of VI Pay Commission’s recommendations which led to disparity among promotees and new recruits. Uniform method should have been adopted. There are chances of persons with more service in a particular pay level getting equal salary with his junior by one or 2 year. This needs rectification.
4. Likely disparities in pension fixation whereby junior may get more pension than the seniors as a result of recommendation under option 2:
The VII CPC has recommended a factor of 2.57 for multiplication of existing basic pension to arrive at revised basic pension. This of course shall not lead to any disparity in pay fixation.
Where as the 2nd option to get the pension fixed as per the number of increments drawn in the particular pay level prior to retirement, may result in great disparities whereby the juniors may get much more than senior pensioners who retired in a higher pay with more basic pension, but with less number of service in the promoted post which he would have held at the time of retirement. Because for arriving at pension under the 2nd option, only the number of years served by a government servant in the particular level of pay at the time of retirement should be taken into consideration as per VII CPC recommendation for exercising the second option.
Therefore in order to arrive at a correct picture to ensure equal pension for civilians for equal number of years, the number of years of service at various level should be taken into account in all the levels from the date of joining the government service till retirement.
5. Suggestion of the Chairman, VII CPC, to do away with setting up of future central pay commissions and give proportionate hike annually to avoid financial burden is a wrong proposal:
The Pay Commissions are set up by the government, to look into the current salary structure and to recommend the hike needed in the pay and other allowances on the basis of the current economic scenario. The Pay Commissions recommendations are not meant for providing financial benefit for the past 10 years, but for future 10 years. The additional financial implication of about Rs.1,02,100 crore i.e. 23.55% in the existing financial liability for implementation of the recommendation is only for one year. i.e.2016-17 which proportionately gets increased every year for the next 10 years. Therefore the suggestion of the Chairman to do away with setting up any more pay commissions and instead to grant proportionate rise in salary every year is a big flaw. It is not clear what the Hon’ble Chairman of the VII CPC really want to suggest. Such a suggestion really shall baffle all the financial experts since the very quantum of additional increase in salary every year comes on the basis of recommendation of the pay commission. Does the Chairman suggest to government to grant further increase in salary every year over and above what the VII CPC have recommended?
6. Questions that need to be answered by the Pay Commission/Government:
a). While adequate amount is provided out of the minimum basic pay of Rs.18,000/-for monthly food items for 3 persons of a family unit which is quite sufficient even for 6 members in a family, but adequate provision is not made towards house rent and educational aspects. The House Rent admissible in X Cities at 24% for Rs.18000/- comes to only Rs.4320/- No family can get a good accommodation for this rate even in Z category cities. There should be a minimum of at least Rs.8000/- as House Rent Allowance in X category cities and a maximum ceiling of Rs.25000/- should be imposed, since persons in higher basic pay stand to get hefty amount as House Rent Allowance which is not advisable.
b). There is no point in granting Children Education Allowance only upto 12th Standard. Any one with 12th Std. qualification can at the most go for a helper job or MTS in government offices. Certainly no welfare government will have such a narrow concept of making the wards of government employees limit their education upto 12th Std. with a view of providing them menial jobs. Therefore government should encourage high level education and pay Children Education Allowance upto Post Graduation level.
CONCLUSION:
Except for the above flaws which need to be rectified, the recommendations of the VII CPC are by and large beneficial and therefore there should be no cause for resentment among the central government employees. They should rejoice over the benefits offered by the VII CPC since the recommendations of the VII Pay Commision are going to yield huge financial benefits in the long run. However, there is a need to take up the matter with the government on the issues which really need intervention by the government to set right the anomalies.
In a nutshell the Chairman and Members of the VII CPC have done a commendable job and fulfilled their mission successfully ensuring justice to all levels of central government employees without any need for worrying about their bread and butter. They really deserve appreciation for presenting an employee friendly report which surely is far beneficial in the history of pay commissions constituted so far.
M. DORAI
DEPUTY DIRECTOR
ESIC MODEL HOSPITAL
(MINISTRY OF LABOUR, GOVT. OF INDIA)
RAJAJINAGAR,
BANGALORE- 560 010

Clarification on Uniform Fitment Factor recommended by 7th Pay Commission


Uniform Fitment Factor recommended by 7th Pay Commission to arrive revised Basic Pay is 2.57

But there is a confusion among Central government employees about the Fitment Factor used by 7th Pay Commission to arrive rationalised Entry Pay in the Table : 4 provided in its Report.

The doubt raised by many of our readers are...


1. Why there are 6 types of Fitment factors mentioned in Table : 4..? [ 2.57, 2.62,2.67, 2.72,2.78,2.81]

2. why shouldn’t they are used for arriving the revised Pay ..?

3. Whether using 2.57 to calculate 7th CPC revised pay for all basic pay is correct or not ?

Let us now be clear about the recommendations on the above issues.

1.Why there are 6 types of Fitment factors mentioned in Table :4..? [ 2.57, 2.62,2.67, 2.72,2.78,2.81]

Though the commission has recommended 2.57 as uniform Fitment factor for all Pay scales to arrive revised Pay, the 7th pay commission wanted to increase the quantum hike between Pay Scales of Groups [GROUP A,B and C] also . Because sixth Pay commission recommended significant hike between Pay Bands to show the difference between three Groups (A,B and C) in respect of Pay Scale.

In Simple term, the 7th pay commission wanted to grant significant hike for the one who is moving to Higher Group on account of Promotion or non functional up gradation, like it was granted in sixth Pay commission .. for example..

If one gets promotion from GP 2800 to GP 4200,

Minimum pay in the Pay Band also to be taken into account for Fixation of Pay in GP 4200 because the individual is moving from PB-I to PB-II. On Pay Fixation, the Basic Pay (GP +BP ) if arrived is below the Minimum Basic Pay of Rs.13500 of the PB-II , the Basic Pay on account of Promotion to GP 4200 will be fixed as Rs.13500. Here it has to be noted that not only the hike in grade pay but hike in Pay Band also involved in fixation Pay when one is moving from one Pay band to another Pay band.

To maintain the difference between Three Groups of employees and HAG scales the multiple Fitment factors used to arrive rationalised entry pay to distinguish the Group A, B and C Employees

So the specific Fitment Factors used to arrive Entry Pay for a Particular Group is to show the significance of that Group in Respect of Minimum Basic Pay. So if Group Change involves when one gets Promotion or non functional up gradation, there will be some hike in Pay also there, apart from moving to next Level.

2. why shouldn’t all these Fitments factors be used for arriving the revised Pay ..?

Now it is clear that these Fitment factors are used only to arrive Entry Pay of Pay Scales for Particular Groups and HAG Scales. so these Fitment factors should not be used to calculate our revised pay of 7th Pay commission.

3. Whether using 2.57 to calculate 7th CPC revised pay for all Basic Pay is correct or not ?

Yes. Using the Fitment Factor 2.57 for all Pay scale to calculate 7th CPC revised pay is correct. As per 7th CPC recommendations the uniform Fitment factor to be used to arrive revised Pay for serving employees, is 2.57.