Saturday, November 28, 2015

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7th CPC Recommendations - Confederation National Secretariat Decisions - - -

Date : 27-11-2015

Dear Comrades,

National Secretariat of the Confederation of Central Govt Employees  & Workers held on 27-11-15 at New Delhi after detailed deliberations on the recommendations of the 7th Central Pay Commission (CPC) has decided as follows :

1.The National Secretariat has come to the unanimous conclusion that many of the recommendations of the 7th CPC are most retrograde and require to  be modified before implementation by the Government, especially the faulty and depressed  minimum wage arrived at by the 7th CPC and the fitment formula. Some of the recommendations such as abolition of certain allowances etc., are to be rejected.

2. The National Secretariat is of the firm opinion that a united struggle of entire Central Govt Employees including Railways, Defence and Confederation under the banner of National Joint Council of Action (NJCA) can only compel the Government to modify or reject the retrograde recommendations of the 7th CPC and hence it is decided to further strengthen the unity.

3. The National Secretariat further resolved that the form of the united struggle of NJCA should be an indefinite strike, within a time frame, as Govt is moving fast to implement the recommendations. Negotiation with the Government should precede declaration of indefinite strike and intensive campaign among the employees and mobilization, to create sanction behind the demands.

4. In case the requisite movement is not coming about for any reason, Confederation National Secretariat will meet and chalk out its own independent action.

5. Regarding the sector-wise issues relating to the employees of each department, the affiliated organizations of the Confederation in those departments shall take initiative for uniting all like-minded Federations/Associations/Unions in their department and shall organize agitational programmes on departmental specific demands.

6. The National Secretariat decided to insist that the charter of demands of the NJCA and Confederation should include the demands of Gramin Dak Sevaks, Casual/Contract labourers, filling up of vacancies and scraping the New Contributory Pension Scheme.

7. All affiliated organizations of Confederation are requested to intimate by e-mail to the Confederation CHQ  ( or on the required modifications or additions / deletions in the common recommendations (not department-specific) of the 7th Pay Commission on or before 05-12-2015.

8. Available Secretariat members of the Confederation will meet on 07-12-2015 at New Delhi and finalize the common demands to be included in the charter of demands of NJCA. (NJCA meeting is being held at JCM National Council, Staff-side office on 08-12-2015 to finalize the charter of demands and the further course of action).

9. The National Secretariat congratulated all the Central Govt Employees who made the 27th November 2015 ‘All India Protest Day’ at the call of NJCA, a grand success all over the country by wearing ‘black badges’ and participating in protest demonstrations.

Other Decisions:

1. Next All India Workshop-cum-Trade Union Camp of Confederation will be held at Dehradun (Uttarakhand) before March 2016.

2. The National Secretariat extended full support and solidarity to the proposed agitational programmes of Passport Employees Association including ‘Indefinite hungerfast’.

Secretary General

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DECEMBER 1st & 2nd, 2015TWO DAYS STRIKE DEFERRED by NFPE-Confederation News




The Federal Secretariat of NFPE held at NFPE Office, New Delhi on 26-11-2015, reviewed the whole situation prevailing among the postal employees in general and the Gramin Dak Sevaks (GDS) in particular after the submission of the 7th Central Pay Commission Report to the Govt and also after the appointment of a separate committee for GDS by the Govt, headed by a retired Postal Board Member as Chairman.

The Federal Secretariat  further reviewed the proposed two days strike call given by NFPE and AIPEU GDS (NFPE) for realization of the legitimate demands of the Gramin Dak Sevaks, which  include bringing the GDS also under the purview of 7th CPC treating them as Civil Servants.

The main demand of NFPE and AIPEU GDS (NFPE) in the charter of demands submitted to Govt and Postal Board is “inclusion of GDS under the purview of 7th CPC”. NFPE organized series of agitational programmes for the GDS demands including dharnas, hunger fast, GDS Parliament March, Parliament March under the banner of Postal JCA (NFPE & FNPO), one day strike on 12th December 2012 and 48 hours strike on 12th & 13th February 2014. Due to our agitational programmes the Postal Board was compelled to submit the proposal for inclusion of GDS under 7th CPC to Finance Ministry with favourable recommendations. But the Finance Ministry rejected the proposal three times and it is in this background NFPE & AIPEU GDS (NFPE) decided to go for two days strike on December 1st & 2nd demanding the Govt to include GDS under the 7th Pay Commission.

Even though the Govt refused to include the GDS under the 7th CPC, the 7th CPC has suo moto examined the main demand of the GDS ie., treating them as Civil Servants and extending them all the benefits of the departmental employees, ofcourse proportionately. It is most unfortunate that the Pay Commission headed by a retired Supreme Court Justice as Chairman, has considered our demand and categorically stated that Gramin Dak Sevaks are holders of Civil Posts but outside the regular civil service and hence can not be treated at par with other civilian employees. After this observation of the Seventh CPC even if the GDS are included in the 7th CPC they are not going to get a fair deal. This has compelled us to modify the demand placed by us before the Govt in the charter of demands.

NFPE, from the very beginning has opposed the appointment of an Officer Committee for GDS and NFPE & AIPEU GDS (NFPE) has tried their best to prevent appointment of an Officer Committee and compelled the department to make effort for inclusion of GDS under 7th CPC itself. But now NDA Govt rejected our demand and has unilaterally appointed GDS Committee with a retired Postal Board Member as Chairman and cheated three lakh GDS employees. From our past experiences we know that the retired officers of the Postal Department will never do justice to the Gramin Dak Sevaks.

In view of the fact that 7th CPC has rejected our demand for Civil Servant status and also the Govt has unilaterally imposed the officer committee on GDS, the Federal Secretariat felt that it is not appropriate to go for an immediate strike with the demands raised by us in the charter of demands, i.e., inclusion of GDS under 7th CPC. Now GDS can get justice only if NDA Govt take a policy decision to regularize the services of GDS treating them as Civil Servants. Federal Secretariat is fully aware that we can not expect such a decision without the  change in the policy of the Government towards GDS. To make a change in the policy decision of the Govt., a bigger mobilization and strike of all postal employees including GDS with the active support and solidarity of other central Govt employees under the banner of Confederation of Central Govt Employees and workers and also the JCM National Council Staffside organizations is required.

The Federal Secretariat decided to explore all possibilities and wider consultations for such a united struggle. The Federal Secretariat felt that to pave way for wider consultations, the independent strike call of NFPE & AIPEU GDS (NFPE) need to be deferred and all likeminded organizations are to be brought under a common platform. Accordingly Federal Secretariat unanimously decided to defer the proposed two days strike scheduled to be held on 1st & 2nd December 2015.

The Secretary General and all General Secretaries of NFPE shall sit on two days hunger fast in front of Dak Bhawan, New Delhi on 1st & 2nd December 2015 expressing our strong protest to the Govt and also demanding regularization of Gramin Dak Sevaks by granting them civil servant status with all consequential benefits of regular employees.

The Federal Secretariat, while saluting the grass root level workers for their intensive campaign and preparation for the strike, calls upon them to organize one day hunger fast infront of all CPMG / PMG and Divisional Offices throughout the country on 11th December 2015 to ventilate our anger, resentment and strong protest against the callous and inhuman attitude of the NDA Govt towards three lakh Gramin Dak Sevaks who are the backbone of the Postal Department catering to the needs of the rural population of this country in postal sector.

Federal Executive of NFPE will meet shortly  to review the situation and shall decide future course of action.



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Central Govt staff protest against pay panel recommendations

The Central Government employees on Friday protested against the Seventh Pay Commission and observed a black day.

Shiva Gopal Mishra, General Secretary, All India Railwaymen’s Federation and Convener, NJCA, said “almost all the Central Government employees have joined today’s (Friday) protests and have pledged for sustained struggle”.

He further said, “If the Central Government does not remove retrograde recommendations of the VII CPC and resolve long-pending genuine demands of the employees, more than 30 lakh employees working in the Railways, Defence, Postal and other Central Government Organisations, will be forced to go for indefinite strike”.

Against the demand for a minimum wage of ₹26,000, the commission has recommended ₹18,000, thereby widening the gap between minimum and maximum wage.

Additionally, the present rate of house rent allowance — of 30, 20 and 10 per cent — has been reduced to 24, 16 and 8 per cent respectively.

The Pay Commission has also refused to make any recommendation against the New Pension Scheme. In case of Child Care Leave (CCL) for women employees, leave wage shall be reduced to 80 per cent for second spell of 365 days CCL.

Meanwhile, there is also a demand by the National Federation of Indian Railwaymen for better facilities for railway employees who are exposed to riskier working conditions.


Thursday, November 26, 2015

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Rationalization of Allotment of Berths under Physically Handicapped Quota with a View To Ensure Optimum Utilization

As per extant instructions, handicapped quota of 2 berths in sleeper class (one lower and one middle) is earmarked for physically handicapped persons travelling on concession.

There are two types of handicapped persons who can book berth under this quota; one for whom it is compulsory to travel along with escort and the second for whom it is optional. Recently instances were brought to the notice of this office where the handicapped persons for whom it is optional to take an escort were not allowed to book single berth against this quota by some Railways since the second berth will go vacant as middle berth cannot be allotted to physically handicapped persons. This issue has now been examined by the Ministry of Railways and further rationalization has been done to ensure optimum allotment and utilization of handicapped quota. The revised decisions taken are given as under : -

(i) There will be two types of handicapped quota of two berths each (one lower and one middle) in the same cabin; one for physically handicapped persons who can utilize concession only when accompanied by an escort and the second for those handicapped persons for whom it is optional to take an escort with them.

(ii) As for the former category it is compulsory to be accompanied by an escort, these berths can be booked by such category of handicapped persons booking tickets on concession on first come first serve basis.

(iii) For the later, where it is optional to be accompanied by an escort, if the first handicapped person intends to book berth along with escort, both the berths will be booked. However if the first handicapped person books without escort, the second berth will not be booked under handicapped quota and will be released to RAC/waitlisted passengers at the time of preparation of reservation charts.

(iv) Further, at the time of preparation of reservation charts, the unutilized lower berths under this quota can be released to physically handicapped passenger (of either category who were kept in general waiting list due to exhaustion of their quota), single senior citizen travelling alone on priority and thereafter to waitlisted passengers as per priority. In case a single berth i.e. middle berth is left vacant in this quota of second category it will be released to RAC/waitlisted passengers.

(v) It has also been decided that whenever a physically handicapped person books ticket on concession and if no berth is available in handicapped quota, the system will automatically try to allot the lower berth to him/her and middle berth to escort subject to availability of same at the time of booking.

These new provisions will be effective by 22nd December, 2015.

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Online Pension Sanction and Payment Tracking System ‘Bhavishya’

Dr. Jitendra Singh inaugurates Workshop on online Pension Sanction and Payment Tracking System ‘Bhavishya’

Digital life certificates for continuation of pensions to be scrapped soon: Dr. Jitendra Singh

Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr. Jitendra Singh has said the practice of submitting digital life certificates for continuation of pensions will soon be done away with. Inaugurating an Awareness Workshop on the online Pension Sanction and Payment Tracking System ‘BHAVISHYA’ here today, Dr. Jitendra Singh said the Department of Pension & Pensioners' Welfare (P&PW) has introduced and fast-tracked several innovative steps in the last few months.

Dr. Jitendra Singh said the pensioners have assumed priority since there are more pensioners now than serving employees. This has come about due to rising life expectancy, he added. The Minister said apart from ensuring timely disbursal of pension, the Department is also holding pre-retirement counselling for employees and considering various options on how best to utilize the experience of retired personnel who can contribute a lot to the government and society as they are energetic and resourceful for long beyond 60 years of age. Dr. Jitendra Singh said Anubhav is another innovative step where retiring employees will share their experience for the benefit of posterity. On the occasion, Dr. Jitendra Singh presented Bhavishya ID Cards to three personnel retiring this month end.

Secretary, P&PW and Secretary, Department of Administrative Reforms and Public Grievances, Shri Devendra Chaudhary said this portal will benefit more than 50,000 employees retiring every year. Head of Offices (HOO)/Drawing & Disbursing Officers (DDO) of all Ministries/Departments including Attached and Subordinate Offices located in Delhi participated in the one day workshop.

The Bhavishya system will introduce transparency and establish accountability in the pension sanction and payment process. It will help to eliminate delays and bring satisfaction to the retiring employees and pensioners. As on date, Bhavishya is being implemented in main Secretariat of 83 Ministries/Departments and 17 attached offices involving 783 DDOs which are in various stages of processing pension cases of 4,066 retiring employees. The web application has so far finally processed and issued PPOs in respect of 652 pensioners. In due course, all the DDOs in various Ministries/Departments and their attached and subordinate offices, numbering over 9,000, would be brought under the ambit of Bhavishya.

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Report of Seventh Central Pay Commission -GENERAL PROVIDENT FUND (GPF)

 General Provident Fund (GPF) for Central Government employees was started w.e.f. 1 April, 1960. It covers those government employees who joined service before 01.01.2004 and are not governed by the Contributory Provident Fund Scheme. The scheme was introduced to foster the habit of saving amongst government employees and to provide them financial help in times of need. The Commission has not received any demands regarding modifications in this scheme.

Analysis and Recommendations

9.4.2 The Commission has analyzed the views of the previous Pay Commissions regarding GPF. The IV CPC and the V CPC did not favour making the scheme optional on the grounds that the fund provided relief to employees in times of need and that accretions to the fund also improved the government’s ways and means position. The VI CPC had, however, recommended that the “future investments in GPF should be allowed purely on voluntary basis with no minimum being prescribed.” Their rationale was that the resource position of Central Government is comfortable and the revenues are showing a steady growth, employees have the option of a variety of market instruments to choose from for investment purposes, and with the proposed increase in monthly subscription under the CGEGIS (70% of which is for saving purposes), the government employees will, in any case, be making a much higher saving.

9.4.3 The Commission notes that the recommendations of the VI CPC regarding CGEGIS and GPF were not accepted by the government; neither the CGEGIS rates were revised, nor GPF was made voluntary.

9.4.4 This Commission is of the view that, with the introduction of NPS w.e.f. 01.01.2004, the number of subscribers under the GPF scheme will decrease as time goes by. Moreover, the scheme has worked well over the past 65 years and has provided pecuniary relief to the subscribers in times of need. Accordingly the Commission does not find merit in any disturbance at this point of time. Hence, status quo is recommended.

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The recommended Seventh Pay Commission hike will not create a boom

The Seventh Pay Commission award will boost central government wages by 23.5 per cent. So, many analysts have predicted a consumption boom, lifting corporate revenues and profits. Whoa!

Some corporates may gain, but others will lose, so the aggregate effect may be minimal. If consumer goods sector gains while capital goods sector loses, arguably, the net effect on the economy will be negative.

Remember, the government has no money except what it takes from others. It can't raise spending on any one item — like government salaries — except by taking this from somebody else, directly or indirectly. So, the pay commission award will mostly mean robbing Peter to pay Paul. Aggregate demand will not rise.

The left hand knows very well what the right hand is up to

Inconspicuous Consumption

The government has four standard robbery routes. First, it can raise taxes. If so, higher salaries will come at the expense of all taxpayers. If taxpayers typically consume less than government servants, the transfer might produce a small boost to consumption. But if the opposite is true, the transfer will actually reduce overall consumption.

The second route would be to finance higher salaries by printing money — technically called monetising the fiscal deficit. This would be an 'inflation tax', picking people's pockets through higher prices. But it would be nixed by RBI governor Raghuram Rajan, an inflation hawk. He is determined to keep money tight enough to reduce inflationary expectations. That rules out printing money.

Third, the government can finance higher salaries by borrowing more from markets — taking away, partially or wholly, what would otherwise have been lent to the private sector. To that extent, it would again be a transfer from Peter to Paul. More important, additional borrowing would increase the fiscal deficit.

Finance minister Arun Jaitley is absolutely committed to reducing the fiscal deficit, from 3.9 per cent of GDP this year to 3.5 per cent next year and 3.0 per cent the year after. So, he cannot use this route to finance higher salaries. The same is true of state governments, which must also prune their fiscal deficits in line with their financial responsibility and budget management targets.

Fourth, the government can finance higher salaries by cutting its own spending. It can't reduce interest on past debt, and obviously cannot reduce salaries — it has to increase them. So, spending cuts will have to come mainly or wholly by slashing investment. This will be one more way of robbing Peter to pay Paul, and a particularly bad way. The need of the hour is to boost investment.

This discussion should make one thing clear. Whatever route — or combination of routes — the government takes, aggregate corporate sales and profits will not receive a boost. The transfer from Peter to Paul can change the fortunes of different sectors. If higher salaries are financed mainly by investment cuts, then sales of cars and TVs may go up, but at the expense of machinery sales.

Many analysts are harking back to the experience of earlier pay commission awards to judge the impact this time. Such comparisons need great care. The last salary hike in 2008 was much higher at 35 per cent, against 23.5 per cent this time. Moreover, the last award included pay arrears for almost two years, putting far more cash in the hands of government servants.

Wrong Precedent

Yet, consumption growth actually decelerated compared with the earlier two years, because of the global recession. The government resorted to amassive fiscal and monetary stimulus. This included slashing the excise duty on autos, lifting sagging sales of cars and motorcycles.

However, the key factor here was the fiscal and monetary stimulus, not the pay hike.

The shoe is on the other foot this time. Both fiscal and monetary policies are going to be relatively tight. The finance minister is committed to reducing the fiscal deficit for the next two years. So are most state finance ministers.

We are in a period of fiscal consolidation, not loosening. In such circumstances, any spending increase on one item will be more than offset by cuts in others. This cannot constitute an overall boost.

The same holds for monetary policy. Consumer price inflation, targeted by the RBI, is an uncomfortable 5% year-on-year, and is trending up a bit. A second bad monsoon in a row has sent up the price of vegetables and pulses to politically embarrassing heights. This has been offset partially by the fall in prices of metals, oil and other commodities.

The RBI has no intention of loosening money just to finance the pay commission award. Interest rates may fall a bit, but will remain among the highest in the world, given that Indian inflation is also among the highest in the world.

There is just one way we can have a free lunch. If oil prices continue to fall, the finance minister can mop up the windfall through higher taxes that, happily, don't raise consumer prices of petrol and diesel.


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

Tuesday, November 24, 2015

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Transport Allowance (TPTA) is granted to cover the expenditure involved in
commuting between place of residence and place of duty.

The existing rates are as under:

 Employees Drawing
 A1/A Class City
(₹ pm)
 Other Places
(₹ pm)
 GP 5400 and above
 3200 + DA
 1600 + DA
 GP 4200 to GP 4800 and other employees drawing GP lesser than 4200 but pay in the pay band equivalent to ₹7440 and above
 1600 + DA
 800 + DA
 GP lesser than 4200 and pay in the pay band below ₹7440
  600 + DA
 300 + DA

8.15.45 Moreover, officers drawing GP 10000 and higher, who are entitled to the use of official car, have the option to avail  themselves of the existing facility or to draw the TPTA at the rate of ₹7,000+DA pm. Differently abled employees are granted this allowance at double the rate, subject to a minimum amount of ₹1,000 plus DA.

8.15.46 Many representations have been received regarding Transport Allowance.
Most of them advocate granting the allowance at the same rate to  all employees, irrespective of theirplace of posting, on the grounds that  fuel prices affect everybody equally.

Analysis and Recommendations

8.15.47 The Commission notes that TPTA is fully DA-indexed.

8.15.48 The first issue to be considered is whether the rate of Transport Allowance should be
the same for all places. There are arguments both for and against this view.

8.15.49 Proponents of the idea argue that petrol prices are almost same everywhere.
Moreover,public transport system is better developed in many of the A1/A Class cities, thereby reducing the cost of commuting significantly. The argument, therefore, is that
A1/A category places do

Report of the Seventh CPC

8.15.50 Opponents point out that the categorization of A1/A has been  abolished  for other purposes (like HRA, CCA) but retained for
 Transport Allowance.
Incidentally, only 13 cities fall under this categorization: six in A1, viz., Hyderabad, Delhi,Bengaluru, Greater Mumbai,Chennai, Kolkata and  seven in A, viz., Ahmedabad, Surat, Nagpur, Pune, Jaipur, Lucknow  and Kanpur. Recently, six more cities, viz., Patna, Kochi, Kozhikode,  Indore, Coimbatore and Ghaziabad have been added to A1/A categories, making it nineteen in all.  (Incidentally, vide a recent notification No. 21(2)/2015-E.II(B)
dated 06.08.2015, the use of term “A1/A” has been dropped for these nineteen cities. Hence, the Commission will refer to these nineteen cities  as “Higher TPTA cities.”). In all these places the commuting distances are  far more than in other cities. Moreover, the public transport system is not
 as developed as it should be in all these places. Therefore, it is argued, the distinction should remain.

8.15.51 After considering both the viewpoints, the Commission is of the view that by and large
the commuting distances and associated difficulties involved in Higher TPTA cities are much
more compared to other places. Hence, the argument that the distinction should stay is a valid

8.15.52 The second issue is whether Transport Allowance should be the same for all personnel
posted at the same place. Here the Commission feels that a question of status of employee is
involved and hence, complete parity is not possible.

8.15.53 Regarding the optimal rate of Transport Allowance, the Commission notes that the
allowance is already fully DA indexed. Therefore, since DA has already reached 119 percent
and is likely to rise further before the implementation of our report,

the following rates of

Transport Allowance are recommended:

 Pay Level
 Higher TPTA Cities
(₹ pm)
 Other Places
(₹ pm)
 9 and above
 3 to 8
 1 and 2 

8.15.54 Officers in Pay Level 14 and higher, who are entitled to the use of official car, will ave
the option to avail themselves of the existing facility or to draw the TPTA at the rate of
₹15,750+DA pm. Differently abled employees will continue to be paid at double rate, subject
to a minimum of ₹2,250 plus DA.


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Massive demonstrations to protest against retrograde recommendations of the VII CPC -AIRF

All India Railwaymen’s Federation
4, State Entry Road, New Delhi-110055, India

No.AIRF/24(C)                                                                                                Dated: November 20, 2015

The General Secretaries,

All Affiliated Unions,

Dear Comrades,

Reg.: Massive demonstrations to protest against retrograde recommendations of the VII CPC

Today, in the meeting held in the office of NC/JCM(Staff Side), 13-C, Ferozshah Road, New Delhi, it has been decided that, all the constituents of NJCA shall give direction to their affiliates to hold massive demonstrations, bearing black badges, on 27th November, 2015, against the following retrograde recommendations of the VII CPC.

Against the demand of the Staff Side, National Council(JCM) for Minimum Wage Rs.26,000, the VII CPC has recommended Rs.18,000, thereby widening the gap between Minimum and Maximum Wage as 1:13.8 while our demand was to keep this ratio not more 1:8.
The present rate of HRA, i.e. 30%, 20% and 10% has been reduced to 24%, 16% and 8% respectively.
The number of interest-free advance, like Festival Advance, etc. have been recommended to be stopped.
Instead of removing the existing anomalies in the MACPS, the Pay Commission has introduced examination for granting MACP benefit.
The Pay Commission has also refused to make any recommendation against the NPS.
In case of Child Care Leave for women employees, leave wage shall be reduced to 80% for second spell of 365 days CCL.
All of you are requested to comply with the aforementioned decision of the NJCA, and the report of the same should be sent to NJCA Headquarters Office, i.e. 4 State Entry Road, New Delhi.

Yours faithfully

(Shiva Gopal Mishra)
General Secretary

Source :
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Dated: November 20, 2015

All Constituents of the
National Council(JCM)

Dear Comrades,

Sub: Meetings with the VII CPC and the Cabinet Secretary

Today I met the Chairman, VII CPC, Justice Shri Ashok Kumar Mathur, and expressed our anguish against retrograde recommendations of VII CPC, particularly reg. Minimum Wage, reduction in HRA and CCL, non-redressal of NPS, abolition of various allowances, examination of MACP benefit, etc. etc.

Tough he had given argument, but I told him about the anguish of all the constituents of the JCM(Staff Side), who feel that they have been betrayed by the VII CPC.

Comrades! I have also met the Cabinet Secretary, Shri P.K. Sinha, in the afternoon and handed him over a copy of the attached letter and requested him to convene meeting of the NC/JCM at an earliest as well as to intervene in the matters raised by the JCA in case of report of VII CPC at an earliest. The Cabinet Secretary has promised that he would try to fix the meeting at an earliest and also look into the points raised by the NC/JCM(Staff Side) for VII CPC.

With fraternal greetings!

Yours faithfully
(Shiva Gopal Mishra)

Source :

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.


Sunday, November 22, 2015

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Calculation for Annual Increment in 7th Pay Commission

7th Pay Commission recommends 3% of the basic Pay for Annual Increment

Annual Increment in Seventh Pay commission remains same. 3% of Basic Pay has been recommended as Annual Increment. But calculation of Annual Increment differs in a way that Pay matrix has been evolved.

In the pre revised Pay, the exact 3 % of the Pay band + Grade Pay would be added in the Pay band on account of Annual Increment on 1st July  of every year.

But here in 7th pay commission there is a possibility to get little more or Less than the three percent of Basic Pay. Because here our Basic Pay has to be moved one stage higher in the same Level. In Pay Matrix , each cell in that particular level is calculated such a way that it is 3% higher than the next cell. Since the figure rounded off to nearest hundred, exact three percent increase cannot be expected.

7th Pay Commission gave an Illustrative Example in Respect of Granting Annual Increment.

Suppose, Ms. ABC, who, after having been fixed in the Pay Matrix, is drawing a Basic Pay of Rs.32,300 in Level 4.

When she gets an annual increment on 1st of July, she will just move one stage down in the same Level.

Hence, after increment, her pay will be Rs.33,300.

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Easy steps to Calculate your Basic Pension in 7th Pay Commission-Gservants

We here illustrate the method through easy 5 Steps to calculate your Basic Pension in  7th CPC  Recommendation

Easy steps to Calculate your Basic Pension in 7th Pay Commission

There are Two options have been given to Pensioners

First They have to calculate the Two options and  whichever is benefit for them They can select higher amount as their Pension

Option No.1 .  The existing Pension may be Multiplied by 2.57

Option No.2 . The Pay Scale  on their retirement and Number of increments they earned  to be taken for calculation

In that Case they should know their Pay Scale and Basic Pay drawn on the date of their Retirement and number increments they earned

By referring the Corresponding Pay scale in successive Pay Commission, they should identify their Sixth pay commission Pay band. If they Know their corresponding Pay Band in sixth Pay commission then it will be easy for them to arrive their Basic Pension to be fixed in VII pay commission.

After calculating the Basic Pension from the above two options, they can choose whichever is beneficial for them

Calculation for arriving your 7th CPC Basic Pension is described below through 5 Easy Steps

 Assume You retired at last pay drawn of ₹4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of ₹3000-100-3500-125-4500:

              Your Basic Pension as revised in VI CPC = 12,543

Calculation Option -I


Multiply your Your Basic Pension with 2.57

                    Basic Pension (VI CPC)   x   2.57

= 12543 x 2.57 = 32235.70 ( Paisa to be rounded off rupee)

Your basic Pension As per VII CPC = Rs.32236

Calculation Option-II


–    Identify your corresponding Pay Level in Pay Matrix
–    For that you should know your Pay Band in VI pay commission

[The Pay scale details will be informed you by Concerned Pension Paying Authorities when ever your basic Pension was revised as per the successive Pay commission Recommendation ]

for example for this pay scale of ₹3000-100-3500-125-4500,  the corresponding  Pay Scale  and   pay band for Fifth and Sixth CPC respectively is given below

[Visit : To see the III, IV , V CPC Pay Scale ]

In IV Pay Commission Your Pay Scale is 3000-100-3500-125-4500
In V pay Commission Your Pay scale is 10000-325-15200
In Sixth Pay Commission Your Pay Band is 15600-39100 – Grade Pay is 6000

         In Seventh Pay commission your Pay Matrix Level is 11

Step -III

Minimum Pay at this level -11 is Rs. 67700

Total increment earned on your initial pay on the date of Retirement is 9

So Count nine cells from the cell assigned as Minimum Pay in that Level 11

your index number in that Particular Pay matrix Level 11 = 10

The figure in Level 11 and Index 10 = 88400

             50% of this Pay will be fixed as your Basic Pension

Hence your Basic Pension will be fixed at Rs.44200/-

Step- IV

Choose whichever is higher to fix your Basic Pension
Basic Pension in Option -1 = 32236
Basic Pension in Option -2 = 44200

You can select option 2 as the fixation for Basic Pension in 7th Pay commission

Your basic Pension in 7th Pay commission = 44200/-

Note : 1.

Those who are retired in Sixth Pay commission regime would be aware of their increment and Pay Band details. It will be easy for them to calculate their Basic pension in VII Pay Commission using this matrix.
For other it will be very difficult to find out their Pay scale and quantum of increment details as of now. Also It will take little time for Concerned Department to verify the Pensioners record to ascertain the number of increments earned in the retiring level

Note -II

So 7th pay commission recommended that in the first instance the revised pension may be calculated using Calculation Option -I and the same may be paid as an interim measure

[ Your Present Basic Pension to be Multiplied by 2.57 = Rs .32236 ]

So Rs.32236 will be paid as Basic Pension as Interim Measure

After Checking the records of concerned individuals As per calculation Option -II

Then Rs.44200 will pe Paid as your Basic Pension

Subsequently the difference of higher amount also will be Paid as Arrears

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A lapse on OROP can turn out to be a bad and costly error-HT

One Rank One Pension (OROP) has been notified by the government and, without doubt, it’s a landmark development. After all, this is an ex-servicemen’s demand, supported by serving soldiers and officers, that goes back perhaps 40 years.

The government deserves a measure of congratulations but the question that remains is: Should it have done more? At least in one respect the answer is an emphatic yes. In one other it could improve on what it has offered.

The error in OROP, as notified, is the following sentence: “Personnel who opt to get discharged henceforth on their own request … will not be entitled to the benefits of OROP.” In September, when he first announced OROP, the defence minister actually excluded all officers and soldiers who sought premature retirement. Now he’s agreed to give it to those who have in the past prematurely retired but decided to exclude those who do so in the future.

Mr Parrikar is wrong for, at least, two reasons. First, soldiers and officers who take premature retirement are entitled to a pension so why are they excluded from OROP? If it’s the cost then this is truly a case of penny-pinching.

More importantly, premature retirees — both soldiers and officers — benefit the army. Given its pyramid structure, this permits easier promotion for others, who are possibly more deserving, and, secondly, it keeps the army young.

In a recent article Lt. Gen. Syed Ata Hasnain, former Commander 15 Corps, provided details to illustrate this point. After 18 years of service, 45% of lieutenant colonels don’t get promoted to the next rank i.e. colonel. However, presuming the average age of their commissioning is 22, they still have 14 years of service left before they reach retirement age at 54.

Why would the government want them to forcibly continue when it knows they won’t be promoted and, as a result, become dispirited and also block the promotion of more deserving majors and captains below them?

Denying OROP to such officers is not just short-sighted but self-defeating. I instinctively feel the defence minister doesn’t understand this or it wasn’t explained to him. I, therefore, share former army chief Gen. Malik’s hope that he will voluntarily and speedily rectify it.

The other lapse in OROP — but it’s by no means of the same order — is the government’s insistence on equalising pensions every five years rather than annually. In effect this means what the government has granted is one rank one pension for one year but one rank multiple pensions for the next four.

What’s perplexing is that Lt. Gen. Kadyan, the chairman of the Indian Ex-Servicemen’s Movement, claims the cost of annual equalisation would be “less than 100 crores”. If he’s correct, the saving is hardly worth the hurt the decision has caused.

For his part the defence minister has said that paragraph 6.4 of the Koshiyari Committee report states that equalisation every five years would be acceptable. No doubt it does. But I don’t believe the Koshiyari Committee recommended that people who seek premature retirement should be excluded from OROP. So if the government wants to go by Mr Koshiyari’s report it should, at least, honour what it promised in full.

The issue that needs to be resolved — and urgently — is exclusion of soldiers and officers who seek premature retirement from OROP. Here the government has made a mistake. In fact, a silly mistake. But if it’s not rectified it will become a bad and unforgivable error.


Saturday, November 21, 2015

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1.    DATD OF EFFECT – 01.01.2016
JCM Staff Side demand – 01.01.2014 - Rejected

2.    MINIMUM PAY – 18000
JCM (SS) demand – 26000 – Rejected
Dr. Aykroyd Formula of 15th Indian Labour Conference for calculation of Minimum wage distorted by 7th CPC to deny the eligible minimum pay.

JCM (SS) demand – multiplication factor 3.7 (26000/7000)

JCM (SS) demand – Minimum two increments fixation.

JCM (SS) demand – 5%

Conditions made more stringent. Bench mark “Very Good” required instead of “good”. Examination for MACP proposed. Hierarchial promotion restored.
JCM (SS) demand: Five promotion – 8,7,6,5,4 (30 years)

New Pension Structure called “Matrix based open ended pay structure” recommended. Total span of the scale 40 years.
JCM (SS) demand: Abolish pay band, Grade Pay system and open ended pay scales should be introduced.

JCM (SS) demand – Minimum 40% increase for all employees.

Demand of the JCM (SS) – 1:8

JCM(SS) demand – pay scales with grade pay 1900, 2000, 4600, 8700 and the pay scale 75500-80000 to be abolished.

Commission recommended abolition of 52 existing allowances such as Assisting Cashier Allowance, Cash Handling Allowance, Treasury Allowance, Handicapped Allowance, Risk Allowance, Savings Bank Allowance, Special compensatory (Hill Area) Allowance, Cycle Allowance, Family Planning Allowance etc.

JCM (SS) demand – Existing HRA of 30% (for X class cities with population 50 lakhs and above), 20% (for Y class cities with population of 5 lakhs to 50 lakhs) and 10% (for Z class cities with less than 5 lakhs population) may be increased to 60%, 40% and 20%.





17.  CHILD Care Leave
1st 365 days –       Full pay (100%)
Next 365 days –     80% Pay only.



20.    MEDICAL
Medical Insurance Scheme for serving and retired employees recommended.


Pay Level
Higher Transport Allowance cities (A, AI)
Other places
9 and above
7200 + DA
3600 + DA
3 to 8
3600 + DA
1800 + DA
1 and 2
1350 + DA
900 + DA

One time LTC to Foreign Country during the service rejected. Splitting of Home Town LTC for employees Posted in North East, Laddakh, Andaman & Nicobars and Lakshdweep allowed.



JCM (SS) demand – No Performance related Pay. Productivity Linked Bonus for all.

Failure to get required bench mark for promotion within the first 20 years of service will result in stoppage of increment. Such employees who have out lived their ability, their services need not be continued and the continuance of such persons in the service should be discouraged.

JCM (SS) demand – the differential entry pay between new recruits and promoted employees should be done away with.

Commission recommended to hasten the process of cadre review and reduced the time taken in inter-ministerial consultations.


CEA per month             2250 - 25% increase when DA crosses 50%
Hostel subsidy              6750 – 25% increase when DA crosses 50%


Level                    Monthly Contribution           Insurance Amount
1 to 5                   1500                                       15 Lakhs
6 to 9                   2500                                       25 lakhs
10 and above      5000                                       50 lakhs


Commission recommends a revised Pension Formulation for Civil employees and Defence Personnel who have retired before 01.01.2016. (expected date of implementation of seventh CPC recommendations). This formulation will bring about complete parity of past pensioners with current retirees.

(50% of the minimum pay recommended by the 7th CPC)




33 Postal dispensaries should be merged with CGHS

Recommendation: - The committee carefully considered the demand for treating the Gramin Dak Sevaks as civil servants at par with other regular employees for all purposes, and noted the following:
(a)       GDS are Extra-Departmental Agents recruited by Department of Posts to serve in rural areas.
(b)       As per the Recruitment Rules the minimum educational qualification for recruitment to this post is class X.
(c)        GDS are required to be on duty only for 4 to 5 hours a day under the terms and conditions of their service.
(d)       The GDS are remunerated with Time Related continuity Allowance (TRCA) on the pattern of pay scales for regular Government employees plus DA on pro-rata basis.
(e)       A GDS must have other means of income independent of his remuneration as a GDS to sustain himself and his family.

Government of India has so far held that GDS is outside the Civil Service of the Union and shall not claim to be at par with the Central Government Employees. The Supreme Court Judgment also states that GDS are only holder of Civil posts but not civilian employees. The Commission endorses this view and therefore has no recommendation with regard to GDS.

(M. Krishnan)
Secretary General


Friday, November 20, 2015

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Pay Fixation in the New Pay Structure 

5.1.28 The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57.

The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay.

If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. A couple of examples are detailed below to make the process amply clear.

5.1.29 The pay in the new pay matrix is to be fixed in the following manner: 

Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation.

This figure is ‘A’. Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’. Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level.

Example I

i. For example an employee H is presently drawing Basic Pay of ₹55,040 (Pay in the Pay Band ₹46340 + Grade Pay ₹8700 = ₹55040). After multiplying ₹55,040 with 2.57, a figure of ₹1,41,452.80 is arrived at. This is rounded off to ₹1,41,453.

 ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.

 iii. In the column for level 13, the figure closest to ₹1,41,453 is ₹1,41,600. iv. Hence the pay of employee H will be fixed at ₹1,41,600 in level 13 in the new pay matrix as shown below

 5.1.30 As part of its recommendations if Commission has recommended any upgradation or downgrade in the level of a particular post, the person would be placed in the level corresponding to the newly recommended grade pay.

Example II 

i. Take the case of an employee T in GP 4200, drawing pay of ₹20,000 in PB-2.

The Basic Pay is ₹24,200 (20,000+4200). If there was to be no change in T’s level the pay fixation would have been as explained in Example I above.

After multiplying by 2.57, the amount fetched viz., ₹62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at ₹62,200.

 ii. However, assuming that the Commission has recommended that the post occupied by T should be placed one level higher in GP 4600. T’s basic pay would then be ₹24,600 (20000 + 4600).

Multiplying this by 2.57 would fetch ₹63,222. iii. This value would have to be located in the matrix in Level 7 (the upgraded level of T). iv. In the column for Level 7 ₹63,222 lies between 62200 and 64100. Accordingly, the pay of T will be fixed in Level 7 at ₹64,100.

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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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Highlights of Recommendations of Seventh Central Pay Commission 

Recommended Date of implementation: 01.01.2016

Minimum Pay: Based on the Aykroyd formula, the minimum pay in government is recommended to be set at ₹18,000 per month.

Maximum Pay: ₹2,25,000 per month for Apex Scale and ₹2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

Financial Implications:

The total financial impact in the FY 2016-17 is likely to be ₹1,02,100 crore, over the expenditure as per the ‘Business As Usual’ scenario.  Of this, the increase in pay would be ₹39,100 crore, increase in allowances would be ₹ 29,300 crore and increase in pension would be ₹33,700 crore.

Out of the total financial impact of ₹1,02,100 crore, ₹73,650 crore will be borne by the General Budget and ₹28,450 crore by the Railway Budget.

In percentage terms the overall increase in pay & allowances and pensions over the ‘Business As Usual’ scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent.

The total impact of the Commission’s recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay+Allowances+ Pension) to GDP compared to 0.77 percent in case of VI CPC.

New Pay Structure: Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.

Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.

Annual Increment: The rate of annual increment is being retained at 3 percent.

Modified Assured Career Progression (MACP):

Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”.

The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service.

No other changes in MACP recommended.

Military Service Pay (MSP): The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents.

The current MSP per month and the revised rates recommended are as follows:

Service Officers      
Nursing Officers      
₹  5,200
Non Combatants (Enrolled) in the Air Force
₹  3,600

Short Service Commissioned Officers: Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. They will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute.

Lateral Entry/Settlement: The Commission is recommending a revised formulation for lateral entry/resettlement of defence forces personnel which keeps in view the specific requirements of organization to which such personnel will be absorbed. For lateral entry into CAPFs an attractive severance package has been recommended.

Headquarters/Field Parity: Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.

Cadre Review: Systemic change in the process of Cadre Review for Group A officers recommended.

Allowances: The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.

      Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance.

The current Siachen Allowance per month and the revised rates recommended are as follows:

Service Officers

This would be the ceiling for risk/hardship allowances and there would be no individual RHA with an amount higher than this allowance.

House Rent Allowance: Since the Basic Pay has been revised upwards, the Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

In the case of PBORs of Defence, CAPFs and Indian Coast Guard compensation for housing is presently limited to the authorised married establishment hence many users are being deprived. The HRA coverage has now been expanded to cover all.

Any allowance not mentioned in the report shall cease to exist.

Emphasis has been placed on simplifying the process of claiming allowances.


All non-interest bearing Advances have been abolished.

Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to ₹25 lakhs from the present ₹7.5 lakhs.

Central Government Employees Group Insurance Scheme (CGEGIS): The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:

Level of Employee
Monthly Deduction
Insurance Amount
Monthly Deduction
Insurance Amount
10 and above
6 to 9
1 to 5

Medical Facilities:
Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended.

Meanwhile, for the benefit of pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis.

  All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.

Pension: The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.

The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix.

This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent.

In the case of defence forces personnel this amount will include Military Service Pay as admissible.

Fifty percent of the total amount so arrived at shall be the new pension.

An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension.

The pensioner will get the higher of the two.

Gratuity: Enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.

Disability Pension for Armed Forces: The Commission is recommending reverting to a slab based system for disability element, instead of existing percentile based disability pension regime.

Ex-gratia Lump sum Compensation to Next of Kin: The Commission is recommending the revision of rates of lump sum compensation for next of kin (NOK) in case of death arising in various circumstances relating to performance of duties, to be applied uniformly for the defence forces personnel and civilians including CAPF personnel.

Martyr Status for CAPF Personnel: The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel.

New Pension System: The Commission received many grievances relating to NPS. It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.

Regulatory Bodies:  The Commission has recommended a consolidated pay package of ₹4,50,000 and ₹4,00,000 per month for Chairpersons and Members respectively of select Regulatory bodies. In case of retired government servants, their pension will not be deducted from their consolidated pay. The consolidated pay package will be raised by 25 percent as and when Dearness Allowance goes up by 50 percent. For Members of the remaining Regulatory bodies normal replacement pay has been recommended.

Performance Related Pay: The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes.
There are few recommendations of the Commission where there was no unanimity of view and these are as follows:

The Edge: An edge is presently accordeded to the Indian Administrative Service (IAS) and the Indian Foreign Service (IFS) at three promotion stages from Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and the NFSG.  is recommended by the Chairman, to be extended to the Indian Police Service (IPS) and Indian Forest Service (IFoS).

Shri Vivek Rae, Member is of the view that financial edge is justified only for the IAS and IFS. Dr. Rathin Roy, Member is of the view that the financial edge accorded to the IAS and IFS should be removed.

Empanelment: The Chairman and Dr. Rathin Roy, Member, recommend that All India Service officers and Central Services Group A officers who have completed 17 years of service should be eligible for empanelment under the Central Staffing Scheme and there should not be “two year edge”, vis-à-vis the IAS. Shri Vivek Rae, Member, has not agreed with this view and has recommended review of the Central Staffing Scheme guidelines.

Non Functional Upgradation for Organised Group ‘A’ Services: The Chairman is of the view that NFU availed by all the organised Group `A’ Services should be allowed to continue and be extended to all officers in the CAPFs, Indian Coast Guard and the Defence forces. NFU should henceforth be based on the respective residency periods in the preceding substantive grade. Shri Vivek Rae, Member and Dr. Rathin Roy, Member, have favoured abolition of NFU at SAG and HAG level.
Superannuation: Chairman and Dr. Rathin Roy, Member, recommend the age of superannuation for all CAPF personnel should be 60 years uniformly. Shri Vivek Rae, Member, has not agreed with this recommendation and has endorsed the stand of the Ministry of Home Affairs.

The full report is available in the website,