Thursday, June 30, 2016

7th Pay Commission: Here's why govt staffers aren't really celebrating windfall

The Narendra Modi government’s decision to accept the 7th Pay Commission recommendations, promising Rs 1 lakh crore of hikes in salaries, perks and pensions for over 1 crore serving and retired government employees, has been hailed as a big bonanza for the top executives in the government. Besides, this is also a booster dose for the growth-hungry Indian economy that’ll benefit from a consumption boost.

But, no government employee is really celebrating the 7th pay commission hike — neither the top babu nor the class C employee, who is the lowest cadre. Why?

Reasons will vary depending on who you talk to.

If it is a top executive, he will complain about the huge difference in compensation with the private sector. Even after the 7th Pay Commission hike, the highest salary drawn by a government employee, the cabinet secretary, is Rs 2.5 lakh per month.

If one compares this with that drawn by a chief executive of a medium-sized private sector company with an annual turnover of Rs 1,000-2,000 crore, this figure is a pittance. The private sector counter part will be drawing anywhere between Rs 10 lakh and Rs 25 lakh per month, besides generous provisions for annual bonuses and performance-linked perks.

“This is one reason why there is a drain form the government to private sector that has escalated of late," observes a senior government official who wished not to be identified. “And many of those who stay back have a feudal-sort of mentality. They make up for their losses for serving the government by way of hefty ‘under table’ payments,” the official said.

The government has announced salary increases in the range of 14. 27 percent to 25.5 percent. The government has put on hold allowance payments. This is against about 40 percent rise in pays implemented by the sixth pay commission in 2008. The 7th pay hike, the employee unions argue, is the lowest in the last 70 years.

Unlike the private sector, where the compensation is revised annually depending on the performance and skills, government employees have to typically wait for a decade for any substantial revision in their wages, if one sets aside the 3 percent routine annual pay increase.

Often, even the well performing bureaucrats feel that there is no value for their work, beyond the element of mental satisfaction, since the reward is same for the performers, laggards, sleepy heads and those who take a detour during their morning walks to office only to punch in their attendance and later return post lunch.

Performance-based pay dumped?

A quick glance at the 7th pay commission recommendations show that the government hasn’t so far accepted the Mathur panel recommendation of performance-based pay or has watered down the key proposal to nothing.

Finance minister Arun Jaitley largely dodged questions on performance pay saying administrative issues will be looked at by a separate committee. This has irked many bureaucrats who were batting against uniform pay for all.

This was suggested by the sixth pay panel too, but remained on paper since there was no methodology to effectively assess performance. Mathur panel, noting that now the systems are in place, had pushed for performance pay and even sought to change the bonus mechanism.

"We are also of the view that there should not be automatic payment of bonus and all existing schemes of payment of bonuses should be linked to productivity," it said.

Until the time the performance-linked pay scheme is implemented, the existing bonus schemes should be reviewed and linked with increased profitability and productivity under well-defined parameters, the panel had proposed.

This recommendation was critical since if the pay is linked to performance that can change the very 'sarkari' nature of the government staff and improve the productivity of the government departments. The Mathur panel also talks about how the civil servants need to be more efficient focusing more on targets and not processes.

Now, in the case of non-executive cadre (the C-class employees, there is no more class-D peons), their salary is now better than their counter-parts in the private sector. Jaitley, during the presser, cited an IIM-Ahmedabad study that said the pay of government employees is now distinctly greater than their private sector counter parts leaving no room for protests.

But, they too are unhappy. Why?

The fundamental reasons can be tracked to the rising aspirations of middle class and a sharp spike in the cost of goods and services over the period, though inflation figures indicate otherwise. When it comes to ambitions, the class difference almost nil. The wish for better education and lifestyle among the lower-income group is as high as the upper class.

“Even a clerk wants to send his son to a top engineering college or even abroad for higher studies. That is one side of the ‘problem’ why the class C staff isn’t satisfied with even a marginal increase in pay. On the other hand, the cost of living and prices of food items have gone up so much since the sixth pay commission that a salary of Rs 20,000 means nothing for him,” said the official who quoted earlier.

That’s a valid argument. The pay package of non-executive staff, which makes up majority of the total government workforce, hasn’t gone up commensurate with the sharp rise in the costs of expenses. This is possibly the reason why they lament despite the pay increase, the official said.

If indeed the government has dumped the proposal to link the pay increase and bonus provisions to performance and targets, that is a big regressive step and mistake by the Modi government. It wouldn't do any good to improve the efficiency and work culture of the government staff.

As for the Rs 1 lakh crore bonanza, yes it will certainly fuel the consumption growth in the economy. But, don’t get it wrong thinking that the government staff are happy. They are not.

SB order 7/2016: Revision in interest rates of small savings schemes

Cabinet approved improvements in the Defence Pay Matrix in Some Levels


The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :

  • Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
  • A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
  • Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
  • Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
  • Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

Anti Working class Cabinet approval on the VII CPC report

Anti Working class Cabinet approval on the VII CPC report

NJCA
NATIONAL JOINT COUNCIL OF ACTOIN
No.NJCA/2016
Dated: June 29, 2016
All Constituents of NJCA,

Dear Comrades!
Sub: Cabinet approval on the VII CPC report
As all of you are aware that the Union Cabinet has accepted the report of the VII CPC today.

It has been noticed that there is no improvement in Minimum Wage and Multiplying Factor as well, which was our hard pressed demand. Instead, wages, as recommended by the VII CPC have been accepted as it is, which is highly disappointing.

Only two committees have been formed, one to take care of the allowances and another for National Pension Scheme, which will submit their reports within four months time.

It is quite unfortunate that, our demand for improvement in the report of the VII CPC has not been considered by the government.

Therefore, it would be quite appropriate that, we should go ahead with our preparations for“Indefinite Strike”, slated to be commended from 06:00 hrs. on 11th July, 2016.

You are also advised to intensify the mass mobilization and strong protests on all the offices and establishments be organized tomorrow, i.e. on 30.06.2016.

With fraternal greetings!

Comradely yours,
(Shiva Gopal Mishra)
Convener

7th CPC Cabinet Decision – Frequently Asked Question

  • Has the 7th CPC recommendation fully accepted?
Yes, it has been approved by the cabinet on 29th June 2016.
  • Did Cabinet approve for the employees request of changing minimum wages?
No, the 7th CPC recommendation will be implemented (Rs.18000/-)
  • What is the Fitment Factor used in Pay Matrix?
A fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.
  • When will I get my arrears?
All arrears including pensioner will be paid during this financial year (2016-17) itself.
  • What would be Rate of increment?
Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.
  • What would be the current House Building Advance?
The ceiling of House Building Advance from Rs.7.50 lakh to 25 lakh,
  • What would be my current Central Government Employees Group Insurance Scheme (CGEGIS)?
It will stay at the existing rate of Rs.30, Rs.60 & Rs.120/- for Group C, B & A respectively.
  • Has the old allowance has been abolished?
Currently No (June’2016). Existing will continue and after 4 month’s there may be changes.
  • What would be the HRA Percentage after Cabinet Decision?
HRA would be at the rate of 30, 20 & 10 percentage and after 4 month’s there may be changes.
  • What’s the status of NPS Implementation?
Cabinet decided to form two separate committee for looking into the issues.
  • Has there been any changes in Defence Pay Matrix?
Yes, there has been changes in 13A (Brigadier), Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier).
  • Will there be any changes in Military Service Pay?
Yes, Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
  • For pension, what would be multiplication factor?
2.57 would be the factor to determine the pension and will be reviewed after 4 months.
  • Have question on 7th CPC?
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7th pay commission worst pay hike in country’s history, says Congress

Dubbing the Centre’s recommendations on the Seventh Pay Commission as ‘disappointing’ the Congress has said it is the worst pay hike in the history of Independent India.
“The pay hike is a mere 15 percent on the basic pay, compared to 23.5 percent, which is being falsely claimed by the Central Government. It is the lowest hike in last 70 years, i.e. since Independence,” Congress spokesperson Randeep Surjewala told to media.

Asserting that the Congress has always stood for the workers of India, Surjewala said the pay hike reflected the mal-intent and lack of sincerity of Prime Minister Narendra Modi-led NDA Government.

He further asserted that over 98 lakh Central Government employees felt disillusioned and let down by the Modi Government’s lopsided, short-charged and tardy implementation of the Seventh Pay Commission in the time of runaway inflation and high prices.

“Seventh Pay Commission was set by the Congress Government led by Dr. Manmohan Singh in September 2014. The then finance minister Chidambaram had announced that it will be implemented by January 2016. Incidentally, BJP had rejected in 2003 the Constitution of Fifth Pay Commission,” he said.

Pointing out the grounds on which the Central Government employees are feeling short-charged and cheated, Surjewala said, “Also, when the Sixth Pay Commission was implemented by the Congress government, it recommended a hike of 20 percent. But Congress government had given unilaterally a hike of over 40 percent. Here the Seventh Pay Commission recommended a hike of 14.29 percent, but Modi Government gave a pretence of 15 percent. Why this? Modi ji needs to answer,” he added.


“Earlier the ratio was 1:12. The Employees’ Federation demanded a ratio of 1:8. But Modi Government has given a ratio of 1:14, meaning thereby, people in higher category will get higher salary and people in middle and lower category will get lower salary. Why this discrimination Modi ji against poor and ordinary employees?” he said.

Union Finance Minister Arun Jaitley announced that the recommendations of the Seventh Pay Commission will be effective from January 1, 2016.

The recommendations, which were approved by the cabinet on Wednesday, is likely to see a higher increase in the basic pay by nearly 15 percent for over one crore government employees and pensioners.

“Seventh Pay Commission has an annual burden of Rs. one lakh two thousand crore, apart from which the arrears burden will likely increase by 12 thousand crore,” said Jaitley.

“The minimum pay of govt. employees will increase to Rs. 18,000 from existing of Rs. 7,000,” added Jaitley.

Adding to this, the minister said that the recommendations approved will see a recurring burden of Rs.72,800 crore additionally.

The implementation of new pay scales recommended by the Seventh Pay Commission will impact the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

One of the key changes suggested by the pay commission has been the ‘New Pay Structure’, under which the existing system of pay bands and grade pay will be ejected and a new pay matrix will be brought in to bring about more transparency.

The panel headed by Cabinet Secretary P. K. Sinha was set up to study the recommendations of the pay commission headed by Justice A.K. Mathur.

The key recommendations of the Seventh Pay Commission is a 23.55 percent increase in salaries, allowances and pension of central government employees and pensioners, which is estimated to put an additional burden of Rs. 1.02 lakh crore on the exchequer annually or nearly 0.7 per cent of GDP.

Keywords:7th pay commmission, pay commission, bjp pay commission, congress pay commission, congress, bjp, randeep surjewala, surjewala, workers pay commission, banks pay commssion, 7th pay commission effect, 7th pay commission criticism, india news

Get your photo, logo on postage stamp for Rs 12 lakh

India Post has issued customised My Stamp for e-commerce platform Amazon India, Hindustan Aeronautics Limited and has received various proposals from various entities, including educational institutes. (PTI photo)

An individual or a corporate entity can now get their photo or logo printed inside the postage stamp for Rs 12 lakh, the Department of Posts said today.

“We have opened up customised printing of ‘My Stamp’ for individuals and corporates. Anyone can get his logo or photo printed inside the stamp for net cost of Rs 12 lakh. There will be 5,000 sheets comprising 60,000 postage stamps,” Department of Posts Secretary S K Sinha told reporters here.
Earlier, India Post only allowed printing of photo or design next to postage stamp on a Rs 300 My Stamp sheet. These stamps can be used for general postal mail.

India Post has issued customised My Stamp for e-commerce platform Amazon India, Hindustan Aeronautics Limited and has received various proposals from various entities, including educational institutes.

“We have proposals to print My Stamp from Western Union, SNDT Women’s University, Allahabad High Court and many others. Till date we have proposals worth Rs 2 crore in this fiscal while total revenue from My Stamp last fiscal was of Rs 2.83 crore,” Sinha said.

When asked about if people with notorious background can get it done, Sinha said, “India Post will examine proposal and it reserves the right to reject it.”

India Post is eyeing a jump of about Rs 100 crore in turnover at Rs 141 crore from the philately segment this fiscal and expects ‘My Stamp’ initiative to contribute about Rs 60 crore.
The Department of Post expects its total revenue to be in the range of Rs 15,000-16,000 crore this fiscal against Rs 13,037.25 crore in 2015-16.

“There was fiscal deficit of about Rs 5,500 crore which we have been able to contain. In next seven years, we will be able to break even,” Sinha said.

Sinha said that the Department of Post is trying to push philately even through educational institutions.

“We have written to Human Resource Development Ministry to include philately as part of course curriculum of class six or seven in schools. There was bleak attempt from our department on this but now we are following it up seriously,” Sinha said.

He said that India Post is also strengthening tracking of mails by introducing bar codes on letter boxes.

“We did a pilot by introducing bar codes on letter box in some states. Now we have decided to expand it to pan-India. Postmen will be given mobile phones using which they will scan barcode on letter box,” Sinha said.

He said that with this system in place, post office will get information about who opened the letter box, when and where.

“The postmen will also upload number of letter or items collected in that letter box. This will help us in tracking status of mails as well,” Sinha said.

Every year India Post transacts 570 crore mails.

DoP to set up board to appoint CEO for postal payments bank

The Department of Posts is planning to set up the board and appoint CEO and COO of the India Post Payments Bank (IPPB) in the next 45 to 60 days and has already written to some public sector banks to nominate their executive director and board members for the same.

The IPPB, which is set to be operational by March next year starting with 50 branches, will also come out with an request for proposal (RFP) in a few days to invite bids for selection of a technology partner.

The bank, which will expand its branch strength to 650 by September 2017, also plans to hire over 2000 employees. Also, all the post offices across the country will have a separate counter for the bank where postal employees will act as business correspondents for providing banking services.

The board of the bank will comprise of 9 members, of which 5 will be independent members and the remaining four will be in-house representatives.

For independent members, a list of about 25-30 people have already been prepared, of which the 5 will be shortlisted.

"We have written to select public sector banks like Punjab National Bank, Canara Bank, Bank of Baroda, Bank of India, Union Bank to recommend their executive director level or board members who may be interested for the post of CEO and COO on deputation basis," Postal Secretary S K Sinha said here.

The department has not approached SBI because it has already tied up with a payments bank of a private entity which will be in conflict with the interest of IPPB.

The Appointments Committee of the Cabinet (ACC) will finally decide on the CEO and COO.

The department is also in the process to register the name of the bank, which is likely to be done in a month or 45 days.

The Government had approved Rs 800 crore for IPPB which will have Rs 400 crore equity and Rs 400 crore grant.

Meanwhile, to create awareness and boost its stamp sales, Sinha has written to the Secretary of Department of School Education and Literacy SC Khuntia, seeking inclusion of a chapter on philately in textbooks of either Class V, VI, or VII.

Around two months ago, a similar letter was written at the joint secretary level, but elicited no response from the HRD ministry, and hence the communication was made at the secretary level around 15 days back.

Though the government has witnessed fall in number of letters sent over the past several years, it is banking on the fact that globally, philately market has shown steady growth and the revenue generated from postage stamp sales is increasing annually.

The secretary also said that to leverage the benefits of the booming e-commerce growth, the postal department has tied up with companies like Snapdeal and Shopclues for sale of philatelic stamps and ancillaries on the platform.

"Not Acceptable" : Confederation. Threatens to advance strike to July 4

The Confederation of Central Government Employees stated that the 7th Central Pay Commission implementation in current form is “not acceptable” in view of the prevailing economic conditions. It has also threatened to advance by a week an indefinite strike to press their demand for revising the hike.

“In the prevailing economic conditions, the proposed hike as per the Pay Commission is inadequate. It is not acceptable to us,” M Duraipandian, General Secretary, Confederation of Central Government Employees and Workers, Tamil Nadu, said.

“If the government does not heed our demand (on revising the hike), we will be forced to advance the indefinite strike call to July 4 instead of July 11,” he told reporters.

source:staffcorner.com

7th CPC Recommendation on CGEGIS is not accepted by Government

7th CPC Recommendation on CGEGIS is not accepted by Government

7th CPC Recommendation on CGEGIS is not accepted by Govt and the old scheme and rates continues
The 7th Pay Commission has recommended the following rates for Central government Employees Group Insurance Scheme (CGEGIS) . The subscription amount has been increased considerably to increase the Insurance amount .
Level of EmployeeMonthly Deduction (Rs.)Insurance Amount (Rs.)
10 and above500050,00,000
6 to 9250025,00,000
1 to 5150015,00,000

This has been objected by NCJCM in its memorandum. The demanded to reduce the monthly deduction as it is much higher than the Premium rates available for Term life Insurance in Open Market. The Central Government accepted this demand and rejected this recommendation and asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

The Press release issued by the Central Government says,

” 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. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.”

Govt. presents blue print on Postal Bank

Govt. presents blue print on Postal Bank

Updated on : 30-06-2016 10:37 AM

The government has come out with a blue print on postal bank. The postal payment bank will have 650 branches by September 2017. That means a branch in each district. 10% of the branches will be in north east state. 

Post offices in each district will be connected the main branch of postal bank in each district.

govt is aggressively searching for a CEO to head the bank. The bank will be run by a board which have five independent director. Bank board will be established in 1 to 2 months. 

The staff of the postal bank will be different postal dept. staff. Initial bank branch staff is expected to be around 2000 people.The cabinet gave a go ahead to the postal payment bank earlier this month.

The India Post Payments Bank shall be set up with an investment of Rs 800 crore. The idea behind postal bank is to increase financial inclusion in the country. 

At present, there are 22,137 post offices with core banking facility compared to State Bank of India's 1,666 branches.

(PD)

Things common people should know about 7th CPC pay raise of Government employees

In an unfortunate event which has occurred yesterday in broad day light, the Government of India has brutally killed the morale of 4.7 Million of its employees. Even more worse thing is the Government has been boasting that it has given a great gift to its employees.

Government is highlighting a few things which are very misleading to the common public. Govt says that the minimum basic is increased from 7000 to 18000 showing that the basic is more than doubled. But the fact is, a government employee's salary depends on many factors not only basic. Even though the basic is doubled, the total salary hike is not more than 5000 to 6000.

A salary of govt employee is calculated as follows.

Total salary = (Sum of allowances ) - (Sum of Deductions)

Allowances are

1. Basic Pay ( Which the Govt says has increased more than double)
2. Dearness allowance ( Calculated based on the price rise index)
3. House rent allowance ( Differs for people living in metros, cities, towns and villages)
4. Transportation allowance ( Differs for people living in metros, cities, towns and villages)

Now the points here most common people do not know is,

1. Dearness allowance will become 0% which now stands at 125% of basic. It is customary to start dearness allowance from 0% from the beginning of new pay.

2. Govt has reduced the present House rent allowances from 30% in metros, 20% in cities and 10% in towns and villages to 24% in metros, 16% in cities and 8% in towns and villages respectively.

3. Only 19 cities in India have been given a transportation allowance of 3600 and all other places will have TA of 1800 only.

The point is even though Government is boasting about doubling of basic, the actual salary of normal clerk has increased to the extent of only 6000 to 9000.

Where as common public will think that since salary is increased by 23.55% or more than double basic, govt employees will now get 70000 to 80000 per month.

That is absolutely false. A govt servant with 10 years of service in clerical cadre used to get a salary of around 35000 will now get a salary of around 42000 only.

We all know the fact that price rise is on the top gear, petrol prices never to be coming down thanks to customs tax which gets modified every fortnight, a common man living in cities cannot live a normal life with these salaries.

We also do have families to look after and children to raise. Ambitious children who have the mettle to do great things in future.

But throwing peanuts for our services which is not less valuable than gold is unjustifiable. Government servants are the tires on which this country rides. A flat tire, a punctured tire will only leads to accidents.

Government should realize their mistake and give the servants what they truly deserve.

We the servants of the Government of India request all the common people to support us in meeting our demands.

We request all the government employees to stay strong and stay united until the govt gives us what we truly deserve.

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7th Pay Commission: Here's why the government may just pull it off

One of the questions thrown at Finance Minister Arun Jaitley at the press conference to announce the cabinet decision to implement the Seventh Pay Commission report was: You have given government employees a pay hike but have you thought about how the resultant inflation will break the backs of other groups? But did the government have a choice about whether or not to implement the report? Could it (or any other dispensation in its place) actually have dared to say that it will not implement it?

The previous government cleverly announced the constitution of the commission a few months before the 2014 elections when there was no hurry to do so, putting whichever government that would come to power in a bind. Once the report is out, any government would be in a damned-if-it-did-damned-if- it-didn’t situation.

The very people raising red flags about inflation and the fiscal deficit would have slammed the government for being unfair to government employees. At best, it could have delayed implementation – the Sixth Pay Commission award was implemented after 32 months – but that would only have built up a crippling burden of arrears; the arrear burden this time is much less than that of previous pay commissions.

So, the government had no choice but to walk the tightrope between perking up the economy with a much-needed consumption boost and unleashing the just-tamed inflation dragon as well as wrecking public finances. Will that tightrope walk be successful or will the economy fall into an abyss from which it will be difficult to climb back?

Well, the government may just pull it off.

There is no doubt that this will give a huge consumption boost to the economy; with all kind of global headwinds affecting India’s exports, a domestic demand spurt was necessary. Imagine 1 crore people (47 lakh employees and 53 lakh pensioners) suddenly with more money in their hands to spend. Exciting times could be in store for automobiles, housing, consumer durables.

It is not just central government employees who will have more money in their hands. Pay revisions of state government employees, central and state public sector employees, urban local bodies, autonomous bodies and universities will also happen sooner rather than later. Many state governments follow the Central Pay Commission recommendations, while a few have their own pay commissions.

Karnataka and Kerala revised their salaries in 2012 and 2014 respectively, many have not done so since 2006. According to Devendra Pant, chief economist and head, public finance, of India Ratings, the demand boost to the economy coming from the pay revisions of all these categories could be four times that of the Seventh Pay Commission award. He expects a consumption boost of around Rs 45,000 crore or 0.3 per cent of GDP.

Of course, not all the 1 crore will spend all the money they get. Many of them are going to save as well. Saumya Kanti Ghosh, chief economic adviser, State Bank of India, believes the award will also give a savings boost more than a consumption boost. Looking at the trend of previous pay commission awards, he points out in an Ecowrap report that the growth rate of household savings sees an increase in the year immediately after the submission of the report over the year preceding it. On the other hand, the growth rate of private final consumption expenditure has fallen in all the years following a pay commission award, barring the Sixth Pay Commission. Since that came around the time of the global financial crisis, he argues, risk aversion levels were higher, and people may have preferred to focus on consumption rather than investment.

A likely increase in savings, he writes, is welcome in a year when bank deposits have touched a 53-year low and the impending FCNR (B) redemptions could also lead to outflows from banks in September. He does not put a number on likely savings, but Pant of India Ratings estimates an increase of around Rs 30,000 crore or 0.2 per cent of GDP. For the Indian economy, especially the infrastructure sector, this will be as welcome as a spending boost.

But let’s not overlook the likely flip side. First, the worries on inflation, which could be very real. Earlier pay commission awards have seen a spike in inflation. Inflation levels have come down since the double digit days of two years back, but retail inflation has started inching up recently, and so have global oil prices.

Economists, however, are not losing sleep over this. The increase will be muted and tempered, Saugata Bhattacharya, senior vice-president of Axis Bank pointed out on television, because the new consumer price index is different from the old one in many ways.

It is not just about statistical nuances. Demand push inflation could definitely occur when there is too much money chasing not much supply because factories are not producing more. That is not the case currently. Factories have over-capacity because of lack of demand; capacity utilisation is around 70 per cent. So there is a lot of slack which could keep inflationary conditions under check. Remember, also, that the government could spread out the pay arrears over a period of time and has not yet taken a decision on allowances and when it does it will be implemented with prospective effect. So the effect of a lot of money sloshing around could be staggered.

Besides, the effect of Brexit on global oil and commodity prices is still unknown. Oil prices did fall a bit immediately after Brexit and if the European economy slumps, this could act as a dampener on price rise. “A rise in demand is likely to not only increase capacity utilisation but may also help revive the investment cycle earlier than expected,” according to Pant.

And what of the fiscal deficit? Does the government have the money for this bonanza (there will be an additional burden of Rs 1.02 lakh crore) or will it have to miss the fiscal deficit target of 3.5 per cent? Doing so will be bad news and a wrong signal to send out.

Actually, the government has factored a large part of the pay commission award in the 2016-17 budget. There are varying estimates (from Rs 20,000 crore to Rs 38,000 crore) of how much of a gap there will be in the budget. How the government handles this will be the key.

It is not certain, for example, whether the arrears (from January to July) are to be given as a lump sum or spread out over a couple of years. Most analysts feel it will be staggered over the next two years. In that case the impact on the exchequer and inflation will both be muted. Besides, there will be an increase in tax revenue from more income tax collection (due to higher salaries) and excise duty collections – or GST, if it comes – from increased consumption.

Pant estimates that the tax revenue of the centre (after netting out the states’ share) could be around Rs 14,100 crore or 0.09 per cent of GDP. Along with other means to bump up tax revenues as well as non-tax revenue (spectrum sale, disinvestment) the outgo on account of higher salaries and allowances could be made up to a fair extent.

Sure, things could still go awry. Global oil and commodity prices could go up. The monsoon could fail. There could be other shocks to the economy, meaning lower revenue collections and higher expenditure.

The government’s economic managers will need to keep a close watch on the negative fallouts of the pay commission award implementation and act quickly to neutralise them. Otherwise all the gains will be lost.

SOURCE - firstpost.

Percentage of HRA in 7th pay commission after cabinet approval

Percentage of HRA in 7th pay commission after cabinet approval

The Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalising the percentage based allowances. The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

The cabinet committee reviewed the recommendations on Allowances and they are not able to give a decision over the Allowances. Hence the Union Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. And it is said that the Committee will complete its work in a time bound manner and submit its reports within a period of 4 months.

In the press release issued by government said the following

” The Commission examined a total of 196 existing Allowances and, by way of rationalization, 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 complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.”

Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively. Whether these existing rates of HRA will be paid based on revised pay or pre revised pay..? It needs to be clarified when implementation of 7th pay commission is in process.

Disgruntlement at pay panel proposals

Confederation plans protest from Monday; many feel let down by the minimum pay proposed.
The Seventh Pay Commission recommendations did not receive an enthusiastic response from most government employees, with at least one employees’ federation threatening protests. Military officers said their real grievances had not been resolved.

The Confederation of Central Government Employees (CCGE) on Wednesday registered its protest against the recommendations, while civil services associations remained tight-lipped awaiting complete details.

The CCGE has threatened to advance the launch of an indefinite strike it planned from July 11 to July 4. “The government employees had demanded a minimum salary of Rs. 26,000 as against the Rs. 18,000 recommended by the commission,” said an official.

While the Indian Police Service Association did not issue any formal statement, an officer on condition of anonymity said: “What a pity that a few IAS officers decide the destiny of the civil services, treat commission reports so contemptuously, throw the progressive civil service reform agenda into the dustbin.”

Reacting to the government’s decision, a senior Indian Revenue Service official said the increase in salary was not as high.

An Army officer pointed out that overall the new matrix system would worsen the disparity between military officers and their civilian counterparts. “The last Pay Commission had any way dealt a bad blow to us. This has not only failed to repair the damage but will only worsen it,” he said, referring to the Non Functional Upgrade (NFU) that only the civilian officers enjoy now.

It is in the military that officers stagnate more than any service, because of the steep pyramid. However, we do not get the NFU, whereas civilian counterparts enjoy it,” he said.

Cabinet clears 23.5% hike in pay for Central govt. staff

Government accepts recommendations of Seventh Pay Commission. Four panels formed to study concerns raised by employees

The BJP-led NDA government on Wednesday announced an overall increase of 23.5 per cent for over one crore government employees and pensioners in line with the Seventh Pay Commission’s recommendations, which left most services dissatisfied. The hikes will come with the August paychecks and be paid with effect from January 1, 2016. The arrears for the six months will be disbursed during the current financial year (2016-17) itself.

In November 2015, within the overall hike of 23.55-per cent, the pay panel had recommended increases of 16% in pay and 24 per cent in pensions. The starting salary for new recruits at the lowest level has been raised to Rs. 18,000 from Rs. 7,000 per month. Freshly recruited Class I officers will receive Rs. 56,100. This reflects a compression ratio of 1:3.12 signifying that the pay of a Class I officer on direct recruitment will be three times the pay of an entrant at the lowest level.

The approved maximum pay, drawn by the Cabinet Secretary, is Rs. 2.5 lakh per month (against the current Rs. 90,000), higher than the salaries drawn by MPs.

To examine the concerns employees have raised, the Union Cabinet decided to set up four committees: The first will look into the implementation issues anticipated and the second one will go into the likely anomalies. Another one will further examine the recommendations on allowances, which have largely been kept on hold. The fourth will suggest measures for streamlining the National Pension System.

Nod for new pay matrix

The Union Cabinet dispensed with the present system of pay bands and grade pay and okayed a new pay matrix as recommended by the Pay Commission.

Employee status, hitherto determined by grade pay, will now be determined by the level in the pay matrix. Separate pay matrices have been drawn up for civilians, defence personnel and for Military Nursing Service with all existing levels subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with.

Gratuity ceiling raised

The gratuity ceiling stands enhanced from Rs. 10 lakh to 20 lakh. The ceiling on gratuity will increase by 25 per cent whenever dearness allowance rises by 50 per cent.

The Cabinet also approved the recommendation of the commission to enhance the ceiling of house building advance from Rs. 7.5 lakh to Rs. 25 lakh. All but four interest-free advances have been abolished

“The fifth and sixth pay commissions had narrowed the gap between salaries paid in the private and government sectors…the seventh has moved further in the same direction. An IIM-Ahmedabad study has found that pay in the government sector is distinctly greater than that in the private sector so there can’t be protests from employees,” said Union Finance Minister Arun Jaitley.

Cabinet approves Implementation of the recommendations of 7th Central Pay Commission : PIB News

Cabinet approves Implementation of the recommendations of 7th Central Pay Commission

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. It will come into effect from 01.01.2016.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC. However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.

The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year. 

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

Highlights:

  • The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.
  • All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.
  • The minimum pay has been increased from Rs. 7000 to 18000 p.m. Starting salary of a newly recruited employee at lowest level will now be Rs. 18000 whereas for a freshly recruited Class I officer, it will be Rs. 56100. This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.
  • For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.
  • Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.
  • The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.
  • Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :
  1. Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
  2. A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
  3. Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
  4. Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
  5. Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.
  • The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.
  • 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. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.
  • The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.
  • The Commission examined a total of 196 existing Allowances and, by way of rationalization, 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 complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.
  • The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.
  • Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.
  • As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.
Source : PIB (Release ID :146644)

Hold Protest Demonstrations at the call of NCCPA

NCCPA HAS CALLED UPON TO STAGE PROTEST DEMONSTRATION AGAINST THE RETROGRADE STAND TAKEN BY THE CABINET ON 7th CPC RECOMMENDATIONS!

A DRAFT RESOLUTION HAS BEEN PROPOSED TO BE ADOPTED AND SEND TO PRIME MINISTER OF INDIA

ALL UNITS / DISTRICTS / DIVISONS / STATE ASSOCIATIONS OF AIPRPA ARE REQUESTED TO STAGE THE PROTEST DEMONSTRATIONS WITH THE AFFILIATES OF NCCPA JOINTLY AND FORWARD THE RESOLUTION TO GOI

- K.Ragavendran
General Secretary AIPRPA

DRAFT RESOLUTION TO BE ADOPTED IN PROTEST MEETINGS AT THE CALL OF NCCPA
HOLD PROTEST DEMONSTRATIONS IMMEDIATELY 

The CHQ of NCCPA calls upon all Affiliates and Units of NCCPA to organise immediate protest demonstrations condemning the decisions of Cabinet to reject basic modifications sought in 7th CPC report by CG Employees & Pensioners. Even Option Number 1 of Pension refixation recommended by CPC is not accepted but referred to Committee. Therefore our Affiliates and Units are called upon to stage protest demonstrations all over india and adopt the following resolution in the protest meetings and send the same to the Prime Minister of India, New Delhi 110001.

KKN Kutty
Secretary General NCCPA


DRAFT RESOLUTION TO BE ADOPTED IN THE PROTEST MEETINGS OF NCCPA AFFILIATES & UNITS ON 30.06.2016

This protest meeting of ________________________ affilitated to National Coordination Committee of Pensioners Association held on _________2016 is extremely distressed over the most condemnable decision of the Government of India in referring the 7th CPC recommendation concerning option 1 which grants a small relief to the Pensioners to the committee headed by the Secretary Pension, who had suggested to government for its rejection ab initio. By rejecting that recommendation, the Government has proved beyond doubt that it is led by the obnoxious advice tendered by a self serving bureaucracy who are basically anti-poor and anti-worker. The Government must rescind this anti-pensioner decision and ask the Pension Department to allow Option Number 1 to all Pensioners as an alternate fitment formula.

Sd/-
President of the Meeting

Cabinet approves Cadre Review of Group 'A' Officers of Central Reserve Police Force

Cabinet approves Cadre Review of Group 'A' Officers of Central Reserve Police Force 
Press Information Bureau 
Government of India
Ministry of Home Affairs
29-June-2016 19:05 IST

Cabinet approves Cadre Review of Group 'A' Officers of Central Reserve Police Force 

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Cadre Review of Group 'A' Executive officers of Central Reserve Police Force (CRPF) with net creation of 90 posts of various ranks from Deputy Commandant to Special DG ranks. After creation of these posts in CRPF, the operational efficiency and capacity building of the Force including its administrative capabilities would be enhanced.

Under the cadre review, the increase in existing structure of Group 'A' posts from 4210 to 4300 posts is as under:-

  1. Increase of one post of Special DG (HAG + level).
  2. Net increase of 11 posts of Inspector General (SAG level).
  3. Net increase of 277 posts of DIG/Commandant/2-l/C (JAG level). 
  4. Net reduction of 199 posts of Deputy Commandants (STS level).
Background:
The Central Reserve Police Force (CRPF), is one of the Central Armed Police Forces. It was formed in 1939. The first Cadre Review of the service was conducted in 1983 and the second and last Cadre Review was conducted in 1991. Though no formal cadre review has been carried out after 1991, major augmentation-cum-restructuring were carried out in 2004 and 2009. During these augmentations, additional battalions were raised without proportionate addition of supervisory and support staff.
****
AKT/VBA/NT

Recommendations of 7th Central Pay Commission approved: Main Points & Highlights

Cabinet approves Implementation of the recommendations of 7th Central Pay Commission: PIB News: - 

Main Points:

  1. It will come into effect from 01.01.2016.
  2. Arrears of pay and pensionary benefits will be paid during the current financial year (2016-17)
  3. Minimum pay has been increased from Rs. 7000 to 18000 p.m.
  4. A fitment factor of 2.57 will be applied across all Levels in the Pay Matrices
  5. Gratuity ceiling enhanced from Rs. 10 to 20 lakh. 
  6. the ceiling of House Building Advance enhanced from Rs. 7.50 lakh to 25 lakh
  7. Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. 
  8. The Cabinet also decided to constitute two separate Committees for (i) NPS (ii) Anomalies

Press Information Bureau 
Government of India
Cabinet
29-June-2016 18:49 IST

Cabinet approves Implementation of the recommendations of 7th Central Pay Commission 

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. It will come into effect from 01.01.2016.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC. However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.

The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year. 

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

Highlights:

1. The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.

2. All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.

3. The minimum pay has been increased from Rs. 7000 to 18000 p.m. Starting salary of a newly recruited employee at lowest level will now be Rs. 18000 whereas for a freshly recruited Class I officer, it will be Rs. 56100. This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.

4. For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices. After taking into account the DA at prevailing rate, the salary/pension of all government employees/pensioners will be raised by at least 14.29 % as on 01.01.2016.

5. Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

6. The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

7. Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :
Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
  • A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
  • Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
  • Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
  • Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

8. The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.

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. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

10. The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.

11. The Commission examined a total of 196 existing Allowances and, by way of rationalization, 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 complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.

12. The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.

13. Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.



14. As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.

कैबिनेट ने सातवें केंद्रीय वेतन आयोग की सिफारिशों को लागू करने को मंजूरी दी

पत्र सूचना कार्यालय 
भारत सरकार
मंत्रिमंडल 
29-जून-2016 20:31 IST

कैबिनेट ने सातवें केंद्रीय वेतन आयोग की सिफारिशों को लागू करने को मंजूरी दी 

प्रधानमंत्री श्री नरेन्द्र मोदी की अध्यक्षता में केंद्रीय मंत्रिमंडल ने वेतन और पेंशन लाभों पर सातवें केंद्रीय वेतन आयोग (सीपीसी) की सिफारिशों को लागू करने को अपनी मंजूरी दे दी है। इसे 1 जनवरी, 2016 से ही प्रभावी माना जाएगा। 

विगत में, कर्मचारियों को पांचवें सीपीसी के समय आयोग की सिफारिशों पर अमल के लिए 19 माह और छठे सीपीसी के समय आयोग की सिफारिशों पर अमल के लिए 32 माह इंतजार करना पड़ा था। हालांकि, इस बार सातवें सीपीसी की सिफारिशें नियत तिथि से छह माह के भीतर लागू की जा रही हैं। 

कैबिनेट ने यह भी निर्णय लिया है कि वेतन एवं पेंशन लाभों की बकाया राशि का भुगतान चालू वित्‍त वर्ष (2016-17) के दौरान ही कर दिया जाएगा, जबकि इससे पहले बकाया राशि के कुछ हिस्‍सों का भुगतान अगले वित्‍त वर्ष में किया जाता था। 

उपर्युक्‍त सिफारिशों से 1 करोड़ से भी ज्‍यादा कर्मचारी लाभान्वित होंगे। इनमें 47 लाख से ज्‍यादा केंद्रीय सरकारी कर्मचारी और 53 लाख पेंशनभोगी शामिल हैं, जिनमें से 14 लाख कर्मचारी और 18 लाख पेंशनभोगी रक्षा बलों से संबंधित हैं। 

खास बातें: 

1. पे बैंड एवं ग्रेड पे की वर्तमान प्रणाली समाप्‍त कर दी गई है और आयोग की सिफारिश के अनुरूप एक नई वेतन संरचना (पे मैट्रिक्‍स) को मंजूरी दी गई है। अब से कर्मचारी के दर्जे का निर्धारण पे मैट्रिक्स में उसके स्‍तर के आधार पर होगा, जबकि अभी तक ग्रेड पे के अनुसार इसका निर्धारण होता था। अलग-अलग वेतन संरचनाएं असैन्‍य (सिविलयन), रक्षा कार्मिकों और सैन्य नर्सिंग सेवा के लिए तैयार की गई हैं। इन संरचनाओं के पीछे सिद्धांत और तर्क एक समान हैं। 

2. सभी वर्तमान स्‍तरों को नये ढांचे में समाहित कर दिया गया है। कोई नया स्‍तर शुरू नहीं किया गया है और न ही किसी स्‍तर को हटाया गया है। वेतन संरचना के हर स्‍तर पर न्‍यूनतम वेतन तय करने के लिए सुव्यवस्थीकरण के सूचकांक को मंजूरी दी गई है, जो वरिष्ठता क्रम में हर कदम पर बढ़ती भूमिका, जिम्मेदारी और जवाबदेही पर निर्भर करता है।

3. न्‍यूनतम वेतन को 7000 रुपये से बढ़ाकर 18000 रुपये प्रति माह कर दिया गया है। न्‍यूनतम स्‍तर पर किसी भी नवनियुक्‍त कर्मचारी का शुरुआती वेतन अब 18000 रुपये होगा, जबकि नवनियुक्‍त ‘क्‍लास I’ अधिकारी का शुरुआती वेतन 56100 रुपये होगा। यह 1:3.12 के संकुचन अनुपात को दर्शाता है, जिससे यह पता चलता है कि सीधी भर्ती वाले किसी भी ‘क्‍लास I’ अधिकारी का वेतन न्‍यूनतम स्‍तर पर न‍वनियुक्‍त कर्मचारी के वेतन से तीन गुना अधिक होगा। 

4. वेतन एवं पेंशन में संशोधन के उद्देश्‍य से 2.57 का फिटमेंट फैक्‍टर वेतन संरचनाओं में शामिल सभी स्‍तरों पर लागू होगा। प्रचलित दर पर डीए को शामिल करने के बाद सभी सरकारी कर्मचारियों/पेंशनभोगियों के वेतन/पेंशन में 1 जनवरी, 2016 को कम से कम 14.29 प्रतिशत की बढ़त दर्ज हो जाएगी। 

5. वेतन वृद्धि की दर को 3 प्रतिशत पर बरकरार रखा गया है। उच्‍च मूल वेतन की बदौलत कर्मचारी भविष्‍य में लाभान्वित होंगे, क्‍योंकि भविष्‍य में उनके वेतन में जो वार्षिक वृद्धि होगी वह वर्तमान के मुकाबले 2.57 गुना ज्‍यादा होगी। 

6. कैबिनेट ने स्‍तर 13ए (ब्रिगेडियर) के लिए सुव्यवस्थीकरण सूचकांक में वृद्धि कर और स्‍तर 12ए (ले.कर्नल), 13 (कर्नल) और 13ए (ब्रिगेडियर) में अतिरिक्‍त स्‍तर (स्‍टेज) सुनिश्चित करके रक्षा संबंधी वेतन संरचना को और बेहतर कर दिया है, ताकि संबंधित स्तरों के अधिकतम पायदान पर संयुक्त सशस्त्र पुलिस बल (सीएपीएफ) के समकक्षों के साथ समता लाई जा सके।

7. रक्षा और संयुक्त सशस्त्र पुलिस बल (सीएपीएफ) कार्मिकों समेत विभिन्‍न कर्मचारियों पर असर डालने वाले कुछ अन्‍य निर्णय भी लिए गए हैं, जिनमें निम्‍नलिखित शामिल हैं। 

• ग्रेच्‍युटी की सीमा 10 लाख रुपये से बढ़ाकर 20 लाख रुपये कर दी गई है। जब भी डीए 50 प्रतिशत बढ़ जाएगा तब ग्रेच्‍युटी की सीमा 25 प्रतिशत बढ़ जाएगी। 

• असैन्‍य एवं रक्षा कार्मिकों के लिए अनुग्रह राशि एकमुश्त मुआवजे के भुगतान हेतु एक आम व्यवस्था की गई है, जो उनके परिजनों को देय होगा और इसके तहत वर्तमान दरों को विभिन्‍न श्रेणियों के लिए 10-20 लाख रुपये से बढ़ाकर 25-45 लाख रुपये कर दिया गया है। 

• रक्षा बलों के कर्मियों की विभिन्न श्रेणियों के लिए सैन्य सेवा वेतन की दरें 1000, 2000, 4200 एवं 6000 रुपये से संशोधित करके क्रमश: 3600, 5200, 10800 एवं 15500 रुपये कर दी गई हैं। 

8. कैबिनेट ने आवास निर्माण से जुड़ी अग्रिम राशि को 7.50 लाख रुपये से बढ़ाकर 25 लाख रुपये करने संबंधी आयोग की सिफारिश को भी मंजूरी दे दी है। कर्मचारियों को कोई दिक्‍कत न हो, यह सुनिश्चित करने के लिए 4 ब्‍याज मुक्‍त अग्रिमों को बरकरार रखा गया है, जिनमें चिकित्सा इलाज के लिए अग्रिम, टूर/स्‍थानांतरण के लिए टीए, मृतक कर्मचारियों के परिवार के लिए टीए और एलटीसी शामिल हैं। अन्‍य सभी ब्‍याज मुक्‍त अग्रिमों को समाप्‍त कर दिया गया है। 

9. कैबिनेट ने केंद्र सरकार कर्मचारी समूह बीमा योजना (सीजीईजीआईएस) में किए जाने वाले मासिक अंशदान में भारी वृद्धि करने की सिफा‍रिश को भी न मानने का निर्णय लिया है, जैसी कि आयोग ने सिफारिश की थी। 

10. आयोग ने कुल मिलाकर 196 वर्तमान भत्‍तों पर गौर किया और इन्‍हें तर्कसंगत बनाने के उद्देश्‍य से 51 भत्‍तों को समाप्‍त करने और 37 भत्‍तों को समाहित करने की सिफारिश की है। 

11. सातवें सीपीसी द्वारा लगाए गए अनुमान के मुताबिक, वर्ष 2016-17 में इसकी सभी सिफारिशों पर अमल से अतिरिक्‍त वित्‍तीय बोझ 1,02,100 करोड़ रुपये का पड़ेगा। इसके अलावा वर्ष 2015-16 के दो महीनों के लिए वेतन एवं पेंशन से जुड़ी बकाया राशि के भुगतान हेतु 12,133 करोड़ रुपये का अतिरिक्‍त बोझ वहन करना पड़ेगा।