Showing posts with label 7thPAY CALCULATORS. Show all posts
Showing posts with label 7thPAY CALCULATORS. Show all posts

Wednesday, December 02, 2015

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The Shocking fact of Pay hike recommended by 7th Pay Commission

The Pay hike recommended by 7th Pay Commssion has been discribed as Bonanza by Media

Pay commission said 14.29 % Hike in Pay is recommended, Media said central government employees will get 23.55%  hike in salary including allowances.

we will find out the real fact about the so called Bonanza..!

whether the Media claims are true or not through a simple calculation…!

The strength of Group C employees in Central Government is 85%. So we must know what the Pay Hike is recommended for them actually.

But Media give more attention to this 15 % because they have been paid more

It doesnt make sense that the Pay hike recommended for remaining 15 % taken into account. Because they are creamy layer of the Government. The Pay Hike for them also will be decided by them. So the take extra  care for not giving more to this 85%.

7th CPC recommendation on Pay Hike is mocking rather than encouraging the Central government employees. See the following example

Assume a govt servant has been appointed in GP 1800 on 1st August of 2015 and he has been provided accomadation in Govt Quarters

His Net Pay for the month of January 2016 in Sixth CPC is given below..

 Basic Pay Pay = PB Rs.5200 + GP Rs.1800  =  Rs.7000/-

             Assuming DA 125% as on 31-1-2016  =  Rs.8750/

              ( Since he hs availed Quarter) HRA  =  Nil

                                                  TA = 600 + DA  =  Rs.1350

                                        Total Gross Pay    =  Rs. 17100


 NPS 10% of basic Pay  =  70

                CGEGIS   =   30

      Total deductions   (700+30) = 730
            Net Pay = 17100-730   =  16370

His Revised 7th CPC Pay as on 31-1-2016

                          Minimum Basic Pay  =  Rs. 18000/-

DA   =    Nil
HRA =    Nil
TA  =  Rs. 1350

                           Total gross pay  =   Rs.19350


NPS = 1800

CGEGIS = 1500

Total deductions = 3300

Net Pay -= 19350-3300 = 16050

Before 7th Pay Commission his Net pay = Rs. 16370
After 7th Pay commission his Net Pay  = Rs.  16050

He will be drawing Rs.320 lesser in 7th Pay Commission revised Pay than from his Sixth CPC pay

Anybody can  calculate from the above example that how much percentage of increase this Goup ‘C’ Government servants get from this 7th CPC bonanza ?

Wednesday, November 25, 2015

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On the issue of LDC/UDC 7th Pay Commission reiterated the deceiving stand of the Government. Despite of realizing the issue as genuine, Government had not taken a positive decision at their level. The tens of thousands of LDC & UDC, solely responsible for the smooth running of many of the subordinate offices, were hoping that 7th Pay Commission will study the problem faced by them and take a positive decision. Staff Side JCM having convinced the importance of the issue, had also recommended merger & upgradation of the Grade Pay of LDC & UDC to Rs. 2800. But here we see that 7th Pay Commission has not taken any decision on the issue except giving some confusing and misleading statements to vindicate the stand taken by the Government as true. Extracts of some of their views on LDC UDC issue spread over various chapters of the reports is given below:

Higher GP 2400 to LDC and consequent upgradation of pay for other civilian posts in the Ministerial hierarchy.

11.22.100 The Academy has urged that LDC should be placed in higher GP 2400 as against the existing GP 1900 at par with grade pay of Data Entry Operator (DEO), on the grounds that both LDC and DEO enter service on the basis of same educational qualification i.e., Class XII and that the functions of LDC are more complex than that of a DEO. This issue has been dealt in Chapter 7.7. Recommendations made there would apply in this case also.

11.52.32 They have demanded upgradation in pay of certain category of non-industrial posts viz., LDC, UDC, Accountant, Junior Head Clerk, Head Clerk, Office Superintendent and Assistant Manager (Admin).

Analysis and Recommendations
11.52.33 The Commission has not received the views of the ministry/department on the issue. However, posts like LDC, UDC, Accountant are common to a number of ministries/ departments. Recommendations regarding their pay are contained in Chapter 7.7 and Chapter 11.35. The Commission does not find any justification for increase in pay scale of the other cadres.

But in Chapter 7.7 no direct recommendation except to decline the demand of LBSNAA to increase the promotional quota of MTS to LDC, is visible. The extract of Para 7.7.37 is give below:

Analysis and Recommendations
7.7.37 Looking at the qualification requirements and their job profile, the Commission does not recommend any changes in the pay structure or the promotional prospects of the MTS. Regarding MTS in Delhi Police, the Commission is of the view that since MTS is a common category, any special dispensation to MTS in Delhi Police is not justified. In so far as the MTS of LBSNAA are concerned, the Commission notes as per the recruitment rules for LDC, presently only 5 percent of MTS can get promoted to LDC through limited departmental examination. However, since the government has stopped direct recruitment for the clerical cadre and gradually phasing out the existing incumbents, their demand cannot be accepted.

11.35.27 There are demands that 50 percent posts of LDCs be earmarked for filing up by promotion/departmental examination by MTS. It has been argued that the educational qualification for the post of MTS is Class X and they are recruited through SSC for performing the work of Peon, Mali, Cobbler, and Sweeper etc. Since most of the MTS join the post with higher qualification of Higher Secondary and Graduation, there is high rate of attrition in the MTS cadre.

Analysis and Recommendations
11.35.28 As per the recruitment rules for LDC, presently 5 percent of MTS can get promoted to LDC through limited departmental examination. Since government has
already stopped direct recruitment for the clerical cadre and gradually phasing out the existing incumbents, this demand cannot be accepted. Moreover enhancement of
promotional quota is an administrative matter to be considered by the relevant
administrative ministry.
Between the lines it can be read that the Government prevented the 7th Pay Commission to not  consider the LDC/UDC issue positively and reiterated the wrong statement of the Government that that Government of India has stopped direct recruitment of LDC through Staff Selection as its recommendation. But the fact is that Staff Selection Commission is frequently conducting recruitment for the post of LDC and without the permission of the Government how they can done at their own. Combined higher secondary examination for the selection of LDC also has been conducted recently. If we take the intention of Government of phasing out the LDC post as true, then where is the alternative recommendation? Who will do the arduous work done by the young and energetic LDCs in the subordinate offices?  It is to be noted that the normal ratio of LDC and UDC in subordinate offices is 5:2 and thus LDCs have been allocated responsible sections and in many smaller offices LDC alone is handling the work of entire Administration.

On the other hand rejecting Central Secretariat Clerical service demand of parity with DEO the commission observes “Even though the entry requirements are similar, historically the pay scales of the two posts have been different. Besides, they comprise two distinct cadres with different set of roles and responsibilities. Hence, the demand for parity of pay of LDC with DEOs cannot be acceded to by the Commission.”(Para 11.35.38).

Our view is that historically these cadres may be different set of roles but the fact is that functions of LDC are more complex than that of DEO and same was brought before the commission by various Associations/Administrative Authorities. Earlier pay Commissions have fixed Pay Scale to DEO considering their work on computer. But today LDCs are more expertise in computer than DEO for doing work in computer, but the demand of parity with DEO is rejected. Extract of Para 11.35.38 is given below:

Central Secretariat Clerical Service
11.35.38 The Central Secretariat Clerical Service (CSCS) consists of the following grades:
i. Upper Division Clerk (GP 2400)
ii. Lower Division Clerk (GP 1900)
LDC and Data Entry Operator (DEO)
11.35.39 It has been demanded that LDC of CSCS drawing pay in GP 1900 be placed in GP 2400 at par with the DEOs on the grounds that post VI CPC, the entry requirements for the two posts is almost similar.

Analysis and Recommendations
11.35.40 Even though the entry requirements are similar, historically the pay scales of the two posts have been different. Besides, they comprise two distinct cadres with different set of roles and responsibilities. Hence, the demand for parity of pay of LDC with DEOs cannot be acceded to by the Commission.

From the above it is clear that Government is adamant on not granting pay scale to LDC & UDCs in subordinate offices at par with the duties assigned to them. Even though the 7th CPC claimed that they have recommended pay scales on the principle of equal pay for equal work, the genuine issue of LDC/UDC is ignored. Thus we are forced to represent against the recommendation to the Government/JCM (Staff Side). All our LDC/UDC friends are requested to raise the issue in their respective Association/Office to force them to represent the issue to the implementation committee for consideration. Also please join all action programmes including strike action, called by the JCM (Staff Side), as published in this web site from time to time, to combat the situation.

TKR Pillai
General Secretary
Mob: 09425372172

Monday, November 23, 2015

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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.

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Trade unions furious over 7th Pay Commission report recommendations: Top 10 reasons why

While the 7th Pay Commission report recommendations have been a source of joy for hundreds of thousands of government employees, for the national trade unions linked to the Bharatiya Janata Party (BJP) and the Left, the hike has not been high enough and they have not kept quiet about it.

Trade unions have protested vehemently against the 7th Pay Commission and are looking for redressal of their grievances and contemplating action. They have also looked at strong industrial action to indicate their unhappiness and will be indicating soon what their future course of action can be. Here are the top 10 reasons why, they say, they are angry with the Seventh Pay panel report:

1. Proposed 7th Pay Commission hike is lowest in many decades and not in sync with inflation - least hike (proposed) in the last 30 years. Considering the inflation, it is unsatisfactory.

2. 7th Pay Commission has recommended a 16 per cent hike in net pay against projected 23.55 per cent.

3. There is a huge gap in maximum and minimum pay in the 7th Pay Commission report recommendations.

. The gratuity ceiling recommended by 7th Pay Commission has been raised from Rs 10 lakh to Rs 20 lakh, the benefit of this will go to senior officials only.

5. 7th Pay Commission report has ignored sharp increase in prices justifying substantial upward revision in HRA and other allowances. Instead the commission has reduced rates of HRA from 30 per cent to 24 per cent of the basic pay in A Class cities and corresponding decrease in other cities which is a retrograde recommendation.

6. Doubts about the way the 7th Pay Commission has calculated the figures. For example, they calculated House Rent Allowance (HRA) at 3 per cent against the mandated 7 per cent.

7. As per commodity prices on Agriculture Ministry's website and on the basis of Labour Bureau data, the Basic Pay comes at Rs 11,341 while 7th Pay Commission calculation shows it at Rs 9,218. There is a lot of gap.

8. There is no clarity in the 7th Pay Commission report on the pay revision for lakhs of contract workers in government ministries as well as 3 lakh Grameen Dak Sewaks.

9. 7th Pay Commission is the only commission, which has reduced the allowances and due to which the growth in net income is only 14.28 per cent. (PTI)

10. 7th Pay Commission report is totally disappointing and beats logic. Employees and workers will meet on November 27 to protest against the recommendations of the 7th Pay Commission and discuss the issue.

NOTE: The 900-page report of the 7th Pay Commission headed by Justice A K Mathur was presented to Finance Minister Arun Jaitley with a recommendation that the new scales be implemented from January 1, 2016. The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.


Friday, November 20, 2015

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Seventh Pay Commission For 23.5% Salary Hike, Minimum Pay of Rs 18,000: 10 Facts-NDTV NEWS

The seventh Pay Commission, headed by Justice AK Mathur, on Thursday submitted its report to Finance Minister Arun Jaitley. The recommendations, once cleared by the Cabinet, will lead to a substantial hike in salaries of central government employees and pensioners with effect from January 1, 2016. The salary hikes are expected to boost sales of affordable homes and consumer durables, which in turn will drive demand in the economy. (Read)

Here are 10 big recommendations of the seventh Pay Commission:

1. Basic salaries of 47 lakh serving government employees will go up by 16 per cent, while their allowances will rise by 63 per cent. As a result, the overall hike in salaries will be 23.55 per cent.  This compares with the 35 per cent salary hike central government employees got on implementation of the sixth Pay Commission in 2008.

2. The house rent allowance has been increased by a massive 139 per cent; 52 allowances have been done away with, while 36 allowances have been subsumed in existing allowances or in newly proposed allowances.

3. Pension of 52 lakh retired employees will go up by 24 per cent, according to the recommendations of the seventh Pay Commission.

4. A system on the lines of One Rank One Pension (OROP) for the armed forces has also been proposed for government officials for the first time.

5. The minimum salary for central government employees has been fixed at Rs 18,000 per month. The salary for employees in the apex scale has been capped at Rs 2.25 lakh per month. However, the salary of cabinet secretary (the highest-ranking civil servant) has been fixed at Rs 2.50 lakh per month.

6. Central government employees will get an annual increment of 3 per cent. The seventh Pay Commission has also recommended the abolition of grade pay and pay band for central government employees.

7. Introduction of a health insurance scheme has been recommended. Many steps have been recommended to improve the New Pension Scheme (NPS).

8. Military Service Pay (for armed forces) for service officers has been more than doubled to Rs 15,500 per month. Short service commissioned officers will be allowed to exit the armed forces at any point in time between 7 to 10 years of service. A uniform retirement age for all paramilitary forces at 60 years has been proposed.

    Read:   Pay Commission Recommends 2-Fold Hike in Military Service Pay

9. The government will incur and additional expenditure of Rs 1.02 lakh crore to pay higher salaries and pensions recommended by the seventh Pay Commission. Of this, Rs 28,000 crore will go for salary hikes of railway employees.

Read: Pay Panel Recommendations to Cost Rs 1.02 Lakh Crore to Government

10.  According to the finance minister, the implementation of the Seventh Pay Commission will impact the fiscal deficit by 0.65 per cent of GDP


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India's 7th Pay Commission suggests drastic changes, favors merit over seniority for top posts

The Seventh Pay Commission has handed a financial bonanza to Central government employees and sent a strong message to dismantle the present hierarchy that is heavily loaded on the side of seniority over performance.

The report says "Civil servants today need to be focused on outcomes, not processes, and have to be more accountable for delivery. They have to be agents of change and to this end need to be more agile, more technically savvy and to be able to ensure the economic and public service reforms that are essential."

A peon's starting salary has gone up by 2.54 times to Rs 18,000 per month and topmost bureaucrat, the cabinet secretary would now draw Rs 2.5 lakh per month plus other perks costing a total of Rs 1,02,000 crore to the exchequer. But there are reasons for the most coveted of the All India Services, officers from Indian Administrative Services (IAS) to read the report carefully because it recommends a tectonic shift in the way the higher bureaucracy functioned.

The Chairman of the Seventh Pay Commission, Justice A.K. Mathur submitted its report to the Union Minister for Finance, Corporate Affairs and Information & Broadcasting, Shri Arun Jaitley, in New Delhi on 19 November 2015. Image courtesy PIBThe Chairman of the Seventh Pay Commission, Justice A.K. Mathur submitted its report to the Union Minister for Finance, Corporate Affairs and Information & Broadcasting, Shri Arun Jaitley, in New Delhi on 19 November 2015.

Dismantling of superiority in the officialdom has form long been demand of officers drawn from non-IAS officers. The pay panel though does not say that in as many words but talks about need for a paradigm shift.

The report says "Civil servants today need to be focused on outcomes, not processes, and have to be more accountable for delivery. They have to be agents of change and to this end need to be more agile, more technically savvy and to be able to ensure the economic and public service reforms that are essential."

The chairman of Seventh Pay Commission justice Ashok Mathur and member Rathin Roy suggest that in the present scenario, it is keenly felt that there needs to be a paradigm shift and the methodology that has been adopted in the past, namely of a seniority driven approach within the various services, has to be revisited.

With the role of government in development and in making the country a market driven, investor friendly economy, key functionaries who should be evolving policy and driving the development process should be ones who have the requisite domain knowledge and sufficient experience in the departments and areas that they are required to head.

"In this context, that the service related claims for any top position are not relevant anymore, and what is important is that the right person is selected for every job. The analysis and the recommendations in the paragraphs that follow reflect this approach," they say.

The approach suggested by this committee was that the skills and background of officers be carefully matched to the requirements of particular positions, while not confining individual officers to narrowly defined tasks or sectors. It was recommended that eleven domains (other than IAS) be identified and as part of the empanelment process at joint secretary and additional secretary levels each officer's domain expertise be specifically identified.

Given the complexities of modern day governance, the existing system of generalists (read IAS) manning senior policy making positions and shifting from one field to another in short spans of time, is considered not just outmoded but inimical to effective policy making.

Justice Mathur writes in his concluding note "that the main cause for resentment among services is that over a period of time IAS has arrogated to itself all power of governance and relegated all other services to secondary position. All posts covering majority of domains are today manned by IAS, be it a technical or administrative which is the main cause of grievance. It is time that government take a call that subject domain should be the criteria to man the posts and not a generalist.

If fair and equitable treatment is not given to all Services, then the gap between IAS and other services will widen and it may lead to a chaotic situation and it will not be good for the governance and country."
In the present bureaucratic set up of a total of 91 secretaries, IAS officers occupy 73, scientists 10, Indian Police Service 1, Indian Legal Service 2, Indian Information Service 1. At Additional Secretary and joint secretary level posts, the IAS virtually monopolise.

The Pay Commission recommends dismantling of existing system to be more inclusive and more transparent in selection process.

A member, Vivek Rae a former IAS officer, however, disagrees with chairman and economist Member. Rae argues for continuance of IAS officers unflinching superiority in the babudom.

Rae is of the view that "the observations made by the panel’s Chairman call for a paradigm shift from a cadre based Civil Service structure to a post based structure including induction of lateral entrants from outside government. While this issue can be debated (and has been debated), it falls well beyond the mandate of this Commission."

He extensively quotes Sardar Vallabhbhai Patel to underline his argument to have IAS’s generalist superiority and then adds by himself: “It is only the IAS which has a much wider remit, cutting across various domains which figure in the Central List, State List and Concurrent List under Schedule VII of the Constitution.

The IAS comprise a general management cadre, constituted to provide leadership spanning the entire spectrum of functional responsibilities and administrative boundaries of government at Central, State and Local level. It is this broad spectrum job profile which equips IAS officers to occupy senior positions under the Central Staffing Scheme.

Their pivotal role in servicing Parliamentary democracy, both at the Central and State level, and keeping the wheels of the Indian Federal structure well lubricated, is also crucial.”


Thursday, November 19, 2015

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Wednesday, November 18, 2015

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The Commission has completed its deliberations and will submit the report to the Government of India on 19.11.2015 at 19:30 hours

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Seventh Pay Commission Report on Thursday, 15% Hike Expected: Sources

Central government employees and pensioners are likely to be disappointed as the 7th Pay Commission is expected to propose an approximate 15 per cent hike in salaries starting January 1, 2016, sources told NDTV.

The recommendation, which will become effective after a Cabinet nod, will impact 50 lakh central government employees and 54 lakh pensioners.

The 15 per cent salary hike likely to be recommended by the 7th Pay Commission will be much lower than the 35 per cent hike employees got on implementation of the 6th Pay Commission in 2008.

A 15 per cent salary increase would push up the central government's salary bill by Rs 25,000 crore, which is 0.2 per cent of India's GDP, according to Bank of America Merrill Lynch estimates.

Economists expect the wage hikes to boost the consumption-driven recovery in the domestic economy. Sales of affordable homes and consumer durables such as cars, two-wheelers and other electronic items are likely to pick up, analysts say.

On the flip side, salary hikes are also expected to stoke inflation and fiscal pressures, economists say.

According to sources, the recommendations of the 7th Pay Commission will be submitted to the finance minister on Thursday. The 7th Pay Commission is unlikely to suggest changes in the retirement age of central government employees, sources said.

Pay Commissions are meant to review the salary structure of central government employees and are set up every 10 years.


Tuesday, November 17, 2015

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7th Central Pay Commission likely to submit its final report on November 20

NEW DELHI: The 7th Central Pay Commission is likely to submit its final report to finance ministry on November 20 which is due for implementation from January 1, 2016.

More than 48 lakh serving central government employees and 54 lakh pensioners will be impacted by the 7th CPC which is likely to recommend an average hike of 15%, said a source.

The 900-page report is believed to have made suggestions on parity of 36 organized Group A services with the IAS which has so far largely dominated in superior positions in the central government.

The pay panel was constituted in February 2014 and was asked to submit its report within 18 months. However, in August the government gave the panel four months extension to submit its report by December.

Its recommendation will guide how the salary and various allowances of central staff will be revised besides improving their service condition. The report would also impact all the public sector employees and central autonomous bodies which generally make corrections as per the hikes given to the central staff.

Even before the report was finalized there was intense lobbying seen where all the 36 organised Group A services petitioned the commission seeking parity with the IAS and determination of central postings based on merit.

The IAS officers too had sent their individual dissention notes to department of personnel and training and the cabinet secretariat besides the pay panel demanding that their edge and superiority be maintained.

One of the demands of the Group A services is to change the composition of the Civil Services Board which is responsible for central staffing. As of now this is dominated by IAS officers and has no representati on from any other service. The pay panel may recommend changes that would ensure level playing field for all officers of Group A services.


Monday, November 16, 2015

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7th Central Pay Commission (CPC): Issues and Expectations

Every ten years, the Central Government of India sets up a Central Pay Commission (CPC) to revise the pay scales of its employees. Since these pay scales are largely adopted by state governments as well, they influence the income of millions of households.

During 2013, time seemed to be running out for the constitution of the next Commission before the beginning of the election cycle. But on September 25, 2013, a week before the election-related Code of Conduct became effective, the government set up the Seventh Central Pay Commission. This commission will review and revise the salary and pensions of 50 lakh (5 million) or more Central Government employees. Now that it is constituted, the Commission will most likely be able to implement its recommendations by the scheduled date of January 1, 2016.

Duties of the Seventh Central Pay Commission

On Feb 28, 2014, the Cabinet approved the terms of reference of the 7th CPC. The CPC is expected to suggest a merger of 50% of DA (daily allowance) with basic pay, which would increase the gross salary of Central Government employees by around 30%. The Cabinet has approved an additional 10% DA over the existing 90% admissible DA, effective January 1, 2014. This increase would be paid in cash after the disbursement of March salary. The 7th CPC is required to submit its recommendation within a year and a half of its date of constitution.

Major issues to be resolved

1. Pay Parity between IAS & other government services: Hundreds of letters are sent by IAS officers to the concerned government officials apprehending that the seventh central pay commission may try to restore parity between different government services in terms of compensation and career progression. It is to be seen how 7th CPC and government deals with this crucial issue.

2. Pay parity with private sector: Central services have demanded to every pay commission to create parity with the officers of private sectors and make their salary structure comparable to later.

3.Retirement age: There is no denial of the fact that working efficiency of an employee is influenced by the increasing age but experience often weighs heavily over the age factor. Even then looking at attitude of present government impression is clear that pay commission is signaled to reduce the retirement age of government employees. Whatever circumstantial indications are available it shows that either 33 years of service of 60 years of age (whichever is minimum) is likely to be recommended. If media reports have ant substance of truth, under performers may be asked to opt for voluntary retirement after reaching the age of 55 years.

4.Pay gaps between least & highest paid employees: In 1947, gaps in salary between lowest and highest paid government employee was in the 1:41 ratio that got reduced to 1:12 by subsequent pay commissions. It has to be observed whether this gap is widened or reduced by the 7th CPC.

5. Continuing with grade pay system? It would be interesting to note whether 7th CPC continue grade pay system or adopts old pay scale system. As per reliable sources, grade pay system will not longer exists in 7th CPC structure. A table is circulating in the media predicting projected pay scales believed to be suggested by 7th CPC.

What are the hottest rumors?

1. Central Government is willing to merge 50% DA with basic pay with effect from 1.1.2015 - All Govt. employees would be happy if it has happened,

2. Age of Retirement will be determined based on completion of 33 Years of service or at the age of 58/60/62/65 Years (depending on existing retirement age in various departments) whichever is earlier.

Members of the Seventh Central Pay Commission

Chairman - Ashok Kumar Mathur (Former Supreme Court Justice and Former Chairman, Armed Forces Tribunal)

Full time member - Vivek Rae (oil secretary)

Part time member - Rathin Roy (Director, NIPFP)

Secretary - Meena Agarwal (OSD, Department of Expenditure)

Latest update

Union Cabinet chaired by PM on August 26, 2015 gave its approval for extension to 7th CPC to submit its report by the end of December 2015.

As per reports in media, 7th CPC is likely to maintain status quo on the retirement age. However, some unconfirmed sources didn't rule out the possibility of a suggestion from Pay Commission to the government that the earliest of either 33 years of service length or 60 years of age may be considered as a criteria for superannuation of central government employees.

Recommendation for pay hike is likely to be low after merging the existing basic pay and dearness allowances. Merging the both component mean 155% rise and adding 25-35% extra makes it 1.8 to 1.9 times in terms of basic to basic.

Grade Pay is likely to be abolished by 7th CPC and gaps between pay scales may widen and hence 7th CPC scale may some what follow the earlier pay formats (as in 3rd, 4th or 5th CPC)
Government may not risk any adverse effect of disclosures related to pay recommendations on election prospects in upcoming Bihar elections.

Implementation Dates of Previous Pay Commission Recommendations

January 1, 1986 - 4th Pay Commission
January 1, 1996 - 5th Pay Commission
January 1, 2006 - 6th Pay Commission

The Pay Commission Process

Implementation of a Pay Commission's recommendations always leaves behind a few anomalies for the next commission to resolve. Making recommendations for pay revision is a long process, involving discussion with various organizations, submission of demands by representatives of unions and associations, and evaluating the potential financial impact of these demands on the national exchequer. Representatives of various organizations are asked to make presentations. The Pay Commission examines service conditions, pay, and perks given to employees.

All the earlier Commissions set up to revise the pay of Indian Central Government employees—except the 6th CPC—took more than three years to submit their report. The Sixth Pay Commission submitted its report within just eight months. Nevertheless, such a quick turnaround cannot be taken for granted for future Pay Commissions, since the timing of report submission and the nature of the recommendations are influenced by political and economic considerations.

Rationale for the Seventh Pay Commission

The constitution of the Seventh Pay Commission is justified for the reasons listed below.

Daily Allowance (DA) has already exceeded 100% of basic pay, and it cannot be merged with basic pay due to the recommendations of the 6th CPC.
Since the wages of some categories of non-government employees are revised at intervals of less than ten years, wages should be revised every five years for central government employees also.
Prompt pay revision of Central Government employees will help reduce the increasing disparities between Central Government employees, public sector employees, bankers, and private sector employees.

Other expected tasks for the 7th Pay Commission include resolving anomalies created by the 6th CPC and addressing bonuses and problems related to the new pension program. All sections of employees will get an opportunity to present pay-related problems to the new Pay Commission and request redress of their grievances.

A new demand gaining support is constitution of a National Pay Panel that will make recommendations for all employees of the country. Since most of the states have adopted for their own employees the pay structure suggested by the 6th CPC for Central Government employees, uniform recommendations would remove discrimination between state and central employees. Recommending a uniform wage structure for each and every employee of India would also reduce pay disparities between private, public and autonomous organizations.

My poll indicates that 39% believe that Central Government employees are likely to get a threefold raise in salary. This is consistent with what was done in the past by earlier pay commissions. Given the existing trend in DA increase, salary may increase 2.3 times by the implementation date of the 7th CPC. Projected pay scales under this assumption are shown below.

Projected Pay Scales (After Implementation of the 7th CPC)

A projection based on media report is reproduced below. However, a fake report in the name of 7th CPC is also being circulated in the media by some miscreants. 7th CPC has been granted extension by the Govt. of India to submit it report by the end of December 2015. It would be clear after the submission of report by 7th CPC what content it has submitted to the ministry for acceptance. Further, each and every point in the report will be examined by the cabinet and approved after considering all the implications. Till then enjoy and go through the speculations made by experts.

7th CPC as per some media reports has eliminated grade pay system and recommended pay scales similar to earlier pay commissions.
7th CPC as per some media reports has eliminated grade pay system and recommended pay scales similar to earlier pay commissions.
A better way to get rid of corruption in public life than across-the-board increases would be to legalize a commission on services by each and every employee. This would also help improve the productivity of private sector employees. In some private or autonomous banking institutions, for example, employees are paid a reasonable percentage for accomplishments such as encouraging customers to open more accounts.

Wage revision is expected for Central Government employees effective January 1, 2016. The newly constituted Pay Commission will get two years to review the existing wage structure and suggest a new one, to meet the expectation of employees, and also to increase efficiency at work at a pace with the growth in the economy.

The Seventh Pay Commission needs to introduce more parity into the pay structure of various sectors. Employees in all departments have been vested with more responsibilities, but their pay structure still belongs to the British period. People serving in the police and armed forces have very low salaries although their duties have become enormously more challenging. Government should increase the compensation to its officers for any service-related casualty. Police forces working under adverse conditions and in remote areas must be paid high wages and good benefits so that more people join these organizations.

The new pension system implemented based on the recommendations of the 6th CPC needs to be revisited and reviewed by the 7th CPC, since the adequacy of fund management depends on market forces and the capabilities of fund managers. The 7th Pay Commission needs to take some vigorous action, based on discussions with trade unions, to come out with a more amicable solution for the new pension scheme.

These are some of the things people genuinely expect from the government, but time will tell how much people get from the CPC.


Tuesday, November 03, 2015

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Removal of Grade Pay System in 7th Pay Commission – A detailed report

Will the removal of Grade Pay System by the 7th Pay Commission help Central Government employees? – This is the topic of this article.

“Unconfirmed reports say that the 7th Pay Commission is very likely to recommend the abolishing of the Grade Pay System introduced by the 6th Pay Commission.”

Not only the Government, but the Central Government employees too are hoping and wishing that the 7th Pay Commission functions independently, free from interventions. The report of the previous Pay Commissions will guide for determining the revision of pay scale and pay bands, allowances, retirement benefits and other facilities/benefits of more than 50 lakh employees. The Pay Commission also considers the recommendations, suggestions and inputs gathered from employees all over the country and presented as memorandums by federations like the NC JCM and the Confederation.

There is no rule that the new Pay Commission has to follow the same methodology and determination followed by the previous Pay Commissions. Therefore, one cannot state for sure that the 7th Pay Commission will tow the guidelines issued by the 6th or the 5th Pay Commission while deciding the new pay scale and pay bands.

One has to keep in mind the fact that the 6th Pay Commission was radically different from the recommendations and guidelines issued by the 5th Pay Commission. One has to also remember that a number of industry experts, who predicted the recommendations of the 6th Pay Commission based on the trends of the previous Pay Commission, were proved completely wrong.

If one Pay Commission has the right to recommend the splitting of the Pay Scale into two, the next Pay Commission has all the powers to completely abolish the system. But, this is not the issue!

Will the Central Government employees benefit by the removal of the Grade Pay system? This is the question now.

It will definitely be beneficial. Here are the reasons why.

It is unacceptable that a promotion, which comes after waiting for many years, brings with it an increment of just Rs.100.

None has until now accepted the splitting of the promotional hierarchy, which had been followed for years, into two.

The anomalies that prevailed due to the ‘Grade Pay Hierarchy’ which was introduced under the MACP promotional system, still remain unresolved.

When the discussions and debates on MACP system continued to grow unabated during the NC JCM Anomaly Committee meeting, it was decided that a separate meeting ought to be held to analyze this issue.

Most of the individual requests from the Central Government employees this time are about the MACP promotional system. The reason is the Grade Pay structure introduced by the 6th Pay Commission.

And also can list out many reasons to abolish the Grade Pay System


Sunday, October 04, 2015

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National Joint Council of Action
4, State Entry Road New Delhi – 110055
September 30, 2015

All members of the NJCA

Dear Comrade,

The National JCA met today on 30.09.2015. In the background of the engineered delay in the submission of the 7th CPC report, the meeting reviewed the decision to go for indefinite strike action commencing from 23rd Nov.2015 and arrived at the following conclusions.

1.The 7th CPC, as per the indication the NJCA had, concluded its deliberations and finalised its report. But due to the pressure exerted by the GOI the report is not likely to be out till the Bihar election is going to be concluded on 8.11.2015.

2. Even if the report is given, the Government might plead for some more time to consider the same and arrive at conclusions.

3. Even though the charter of demand contain other major issues, viz FDI, outsourcing, New Pension Scheme etc, the CPC related issues especially the revision of wages has its own significance and struggle without the said issue is impracticable.

4. The meeting also noted that after the impressive march to parliament held on 28th April, 2015, no serious programme of action was undertaken, which has created a certain complacency in the movement. The meeting noted the necessity to rejuvenate the NJCA functioning at all levels.

5. It was also noted that there are states which have not held the state level conventions and consequently have not brought into being the state apparatus required to spearhead a serious action like indefinite strike.

6.In view of above mentioned conclusions, the National JCA has decided to defer the strike action slated for 23rd November 2015 to a date during the Budget session of the parliament i.e from Feb to April 2016. The exact date of commencement of the strike will be decided by the National JCA when the 7th CPC report is available.

7.The NJCA also has decided to call upon all Federations of Central Government Employees to organise a massive protest demonstration in front of all work-spots/offices on 19th November 2015 wearies Black Badge to register our anger and resentment over the Government’s action in engineering delay in the submission of the report by the 7th CPC.

8.The National JCA leaders and all standing council members will sit on a day long Dharna at Jantar Man tar on 19.11.2015 by wearies Black Badge to highlight the anti worker attitude of the GOI and its concerted efforts to undermine the functioning of JCM.

We also send herewith the resolution adopted at the meeting which has been Forwarded to the Government already.

With greetings

Encl: Resolution

Comradely yours,

(Shiva Gopal Mishra)


1.The National JCA of Central Government Employee, which met today on 30.09.2015 at New Delhi strongly condemns the Governments’ action in engineering delay in the submission of 7th CPC report. The 7th CPC was to submit its report on 28th August 2015. i.e on the expiry of 18th months’ time provided to it by the Government as per the terms of reference. The demand for interim-relief and merger of DA was denied. The Government refused to amend the terms of reference despite repeated appeals made by the National JCA on several occasions.

2.The Charter of demand submitted by the National JCA to the cabinet Secretary realisation of which it has been decided to organize indefinite strike commencing from 23rd November 2015 has remained unattended and unsettled. No follow up action was initiated by the Government after discussion of the issues at the level of Secretary Personnel held on 25th February 2015.

3.The National Council JCM has not met in the past 5 years even once, giving the impression that the Government’s intention is to award a natural death to the negotiating forums and compel the employees to tread the path of struggle for realization of the demands. Many departmental councils have been placed on hibernation for the part one decade.

4.The National JCA has come to the inescapable conclusion that the present Govt has no intention to reach out to a settlement on any issue pertaining to the Central Govt. Employees, given its anti labour, anti people attitude.

5.The National JCA has decided to call upon the Central Government Employees throughout the country to organise massive protest demonstration jointly on 19th November 2015 in front of all Offices/work place eliciting the participation of all employees workers and pass resolution and send the same to the Finance Minister and the Cabinet secretary.


Thursday, September 24, 2015

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Seventh Pay Commission Likely To Introduce Health Insurance

New Delhi: In a move that could benefit more than 50 lakh central government employees and 56 lakh pensioners, the Seventh Pay commission is planning to propose to introduce health insurance scheme to replace Central Government Health Scheme (CGHS) at highly subsidized rates.

The pay panel has already held detailed discussions about this with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services.

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

The serving central government employees in non-CGHS areas are provided healthcare facilities under the CS(MA) Rules, 1994, but pensioners are not covered under these rules.

The pensioners are, however, entitled to a fixed medical allowance of Rs 500 per month. The pensioners residing in non-CGHS areas have the option to become a CGHS member in any CGHS-covered city of their choice to avail the medical facilities under the CGHS Scheme.

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

The health insurance would cover a family of six the employee and pensioner himself or herself, the spouse, two children and two parents. The maximum sum assured for family in a year could up to Rs 5 lakh.

Under the CGHS, the annual per capita expenditure is more than Rs 5,000. In contrast, the National Rural Health Mission (NRHM), which caters to the rural masses, spends just Rs 180 per head.

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

So, the central government also wanted for ending the CGHS in its current form and to move to an insurance-based health scheme to cut costs.

TSTNew Delhi: Seventh Pay Commission is ready with its recommendations on revising emoluments for nearly 48 lakh central government employees and 55 lakh pensioners, and will soon submit report to the Finance Ministry.

Earlier in August, the government had extended Commission's term by another four months till December 31 to give recommendations.

"The Commission is ready with recommendations and the report will be submitted soon," according to sources.

The Commission, whose recommendations may also have a bearing on the salaries of the state government staff, was given more time by the Union Cabinet just a day before its original 18-month term was coming to an end.

Headed by Justice A K Mathur, the Commission was appointed in February 2014 and its recommendations are scheduled to take effect from January 1, 2016.

The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often states also implement the panel's recommendations after some modifications.

As part of the exercise, the Commission holds discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as defence services.

Meena Agarwal is the secretary of the Commission. Other members are Vivek Rae, a retired IAS officer of 1978 batch and Rathin Roy, an economist.

Sixth Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and the fourth from January 1, 1986.

As part of the exercise, the Commission holds discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as defence services.

Meena Agarwal is the secretary of the Commission. Other members are Vivek Rae, a retired IAS officer of 1978 batch and Rathin Roy, an economist.

Sixth Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and the fourth from January 1, 1986.


Monday, August 03, 2015

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Next to 7th Pay Commission, the words that circulates more among the central government employees is “DA expected for July 2015″. To that extent, Dearness Allowance sways the minds of the central government employees.

The AICPIN needed for the calculation of DA for the month of July 2015 has been released. As already said, an increase of 6% is confirmed. The hiked DA for July 2015 will be 113% + 6% = 119%.

When compared to the other DA announcements made at different times, this announcement holds importance. The reason for this is: Central Government employees think that the next DA announcement (DA January 2016) may be released when the 7th Pay Commission is in force.

The DA calculation method that is presently followed has to be definitely changed. It does not reflect the true inflation levels. When 10% increase is got through DA, there is a 15% increase in reality. Federations and Labour Unions have requested the government to address this issue several times.

The DA which is calculated and given once in 6 months has to be calculated and given once in three months. Changes have to be made to ensure that the increased DA is given to the employees in the months of January, April, July and October.

In today’s situation, technology has grown tremendously, so a gap of six months appears too long. A change can be easily carried out if the Government and the 7th Pay Commission have a good mind to do this. The employees will receive the increased DA in time without delay.

Monday, July 20, 2015

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Seventh Cental Pay Commission To Submit Report By October 31

New Delhi: The eyes of the central government employees will be firmly glued on the forthcoming seventh central pay commission reports which is likely to be be submitted by October 31 for implementation from April 2016.

The pay panel is likely to finalise and submit its report on salary and allowance hike by October 31, sources said. The members and officials of the panel had made several field tours and collected valuable suggestions, which are all going to be trashed as the Commission winds up its office within three month.

After getting recommendations, the central government may announce to accept it in the budget 2015-16 to implement it from April 2016.

It is expected that seventh pay panel to suggest hiking the tripled salaries of central government employees.

The salaries of central government employees were roughly tripled with retrospective effect from 1996 and tripled once again with retrospective effect from 2006 by the fifth pay panel and sixth pay panel respectively. This shows the salaries of central government employees have tripled every decade.

According to media report says that investors are expecting car bazar to get a boost from the seventh central pay commission’s recommendations from mid-next year on account of getting arrears of rising salaries of central government employees.

The last Pay Commission report had resulted in car sales rising 18 per cent annually between financial year 2009-10 and financial year 2010-11.

The last pay commission was implemented in August 2008 with retrospective effect from January 2006 which resulted in getting huge salary arrears to central government employees to enable them to purchase car from their arrears on loan basis.

They paid margin amount from arrears and installments from salaries but this pay panel will be implemented from January 2016, hence no such huge arrears will be paid to central government employees this time to pay margin amount for car loan. So car bazar will not get a boost from the seventh central pay commission’s recommendations.

Input from

Saturday, July 18, 2015

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7th Pay Commission Recommendations has begun to emerge!

It doesn’t come as a surprise that even bits and morsels of information about the recommendations, which is being eagerly expected by nearly 50 lakh employees and pensioners, make headlines.”

The recommendations of the 7th Pay Commission have slowly started to make their way to the media in the form of unconfirmed news. The information that was being extensively discussed by all for more than a week now has finally made it to the websites yesterday.

It has now been confirmed that the 7th Pay Commission will submit is report to the Government next month. With the report being given a final shape, certain pieces of information have already started to hit the media. Some of the workable recommendations of the commission are out.

In 2006, a number of such unconfirmed reports surfaced, when the 6th Pay Commission report was being prepared, because the report was not submitted to the government on time. Due to the delay, there was tremendous curiosity to find out what the report contained. This led to a lot of rumors. Since the internet didn’t become that popular in those days, those rumors were hard to believe. Most of them were circulated by word of mouth.

Now, despite the fact that there are plenty of news sources, since it has become possible to trace the point of origin of the information, such rumors have reduced. This time around, the information was given by the leaders of Federations. Yet, one can neither completely accept them as true, nor dismiss them as entirely false.

Since the government and the major employees federations have their own websites, it has become possible for the information to spread to the corners of the world within minutes. Also, retracts and denials too have become equally fast, thus killing the rumours immediately. With a number of other individual websites and blogs too covering the news about Central Government employees, the readers are now able to differentiate between news and rumours.

There is nothing surprising or shocking in the news reports that have now surfaced. A minimum basic pay of Rs.21,000 is an expected one. The recently released Kerala Pay Commission too has recommended the minimum wage at Rs.17,000 (from 01.01.2014 onwards). The National Council has demanded that it be Rs.26,000 per month.

It is a well known fact that the Grade Pay System had been a source of constant irritation. The dual Hierarchy System (Promotional hierarchy and Grade Pay hierarchy) will come to an end. There will not be any more confusion about the promotions that come through MACP.

The Multiplication Factor of 2.86 does sound very low. NC JCM had pressurized the Pay Commission to fix it at 3.7. The 6th Pay Commission had fixed it at 1.86, and also given Grade Pay. Since the DA now stands at 125% (including July 2015 and January 2016), this could end up being substantial.

Information about retirement is unexpected. Unconfirmed reports claim that the 7th Pay Commission is planning to recommend 33 years in service or the age of 60 (whichever comes early) as the criteria for superannuation. Since the recommendations will be implemented from 01.01.2016 onwards, many are likely to get affected.

And also some key messages revolving about the recommendations are…
There will be no running Pay band and Grade Pay System. The Pay scales will be open ended to avoid stagnation in the scales. The CCA will be separated into two components as it was in the 5th Pay Commission. CGEGIS Insurance Coverage and Monthly premium will be increased. Classification of Posts will be Modified and the 7th Pay Commission recommendation will be implemented with effects from 1.1.2016.


Wednesday, May 06, 2015

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7TH CPC-Minimum Wage of Rs 26,000/- Justified and Fitment formula


You can get any price of any article using the Query option.

 The prices  of many items provided by the Staff side JCM  are lower than the retail prices provided by the Government agency  . Hence the Minimum wage of Rs 20,000/- is  justified for the  erstwhile Group "D" with effect from 1/1/15 using Dr Aykroyd  formula . After weightage of 25% for Group "C" it works out to Rs 26,000/- .

Please click here for prices of Food items as on 1/1/15

Please click here for prices of Non food items as on 1/1/15

 Please click here for Minimum Wage calculation sheet

The fitment formula  may range from 2.72 times to 3.72 depending upon the weightage.  

The Sixth Central Pay Commission has recommended a minimum wage of Rs 6600/- per month   against the demand of Rs 10,000/-  per month as worked out by Staff side of JCM, Today the minimum need based wage works out to Rs 26,000/ per month.

Comradely yours

(P.S. Prasad)
General Secretary