7th Pay Commission Report!!

Much awaited 7th Pay commission report is submitted to the Govt.,

Note , it is recommendation only. Govt., has to approve it. Govt., has the right to increase, decrease or change any provision.

Govt. will appoint a small committee to scrutinize and report about implications on effecting the commission’s report. Therefore, we have to wait for the final outcome.

Comparing CG employees wages with Bank employees will be of no use as their wage bill is paid out of Budget allocation, whereas our wages or paid out of profit earned. Political Bosses can give any amount of increase at their will and pleasure based on various factors.

Of course it is a fact they are already drawing more than bank employees from 5th Pay commission.

Unions for CG employees termed the report as most disappointing and retrograde recommendations. Unlike Banks Bi-partite system, in Cental Govt. Unions can place demands thro representation only. Consultative meetings will be held by Commission, where Unions can express their view. It is commission’s own decision to finalise the increase and give its recommendation to Govt.

(Unions objections circular is reproduced at the end of this post)

From the data available as of now, following are my view:

1. The commission report is finalized much before the expiry of previous wage arrangement. It is a welcome aspect. (When it will be given effect is still a question)

2. Increase of 23.55% for a period of 10 years is a disappointing aspect. It works out to 11.7% for a 5 year settlement.

3. Conversion factor 2.57 is nothing but merging of prevailing D.A.119% and then increasing Basic pay by 16% (it will be 8% for five year). But, in Bank only 2% is increased after merging of D.A. But, 7.75% is given separately, depriving after retirement benefits.

4. Abolition of 52 allowances will affect a section of employees.

5. Annual increment will be 3% as in the past. In Banks annual increments are higher (around 5%)

6. Increase of 24% for Pension. Increase is given to pensioners as in the past , whenever revision in wages takes place . In Banks , no such revision, pension fixed once is paid forever.

7. Employees are covered under Medical Policy, but employees have to pay for the premium. In Banks , employees need not pay anything.

8. Gratuity Limit is increased from Rs. 10 lacs to Rs.20 lacs.. A welcome move. (But, Bank employees will not get this benefit, as we are not coming under Govt. Employees. Only Labour Dept. has to amend and increase the limit for Industrial establishments, as done in 2010.)

9. Regarding age of retirement , two different view has been recorded. Govt., has to take the final decision.

I am not going into minute details , as the wage structure for them are more complicated (too many grade, posts, pay band, allowances etc.,) and hard to understand by other sector employees

As far as I am concerned, Settlement achieved in LIC is the best in the recent past, for both in service Employees and retired Employees.

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Reaction of Unions:

7TH PAY COMMISSION REPORT SUBMITTED TO GOVERNMENT OF INDIA ON 19.11.2015

MOST DISAPPOINTING AND RETROGRADE RECOMMENDATIONS

WORST RECOMMENDATIONS EVER MADE BY ANY PREVIOUS PAY COMMISSION

ONLY 14.29% INCREASE IN PAY AFTER 10 YEARS

(EQUAL TO TWO DA INSTALLMENTS)!!!

50 LAKHS CENTRAL GOVERNMENT EMPLOYEES AND DEFENCE PERSONNEL CHEATED & DECEIVED

HOLD PROTEST DEMONSTRATIONS ALL OVER THE COUNTRY

NJCA LEADERS MEETING AT DELHI ON 20.11.2015 AT 11 AM, WILL DECIDE THE FUTURE COURSE OF ACTION

IMPORTANT RECOMMENDATIONS

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.

3. FITMENT FORMULA – 2.57 TIMES

JCM (SS) demand – multiplication factor 3.7 (26000/70000)

4. FIXATION ON PROMOTION – NO CHANGE – ONLY ONE INCREMENT IN THE OLD SCALE

JCM (SS) demand – Minimum two increments fixation.

5. ANNUAL INCREMENT – 3% NO CHANGE

JCM (SS) demand – 5%

6. MODIFIED ASSURED CAREER PROGRESSION – NO CHANGE – 10, 20, 30

Conditions made more stringent. Bench march “Very Good” required instead of “good”. No Examination for MACP proposed. Hierarchial promotion restored.

JCM (SS) demand: Five promotion – 8,7,6,5,4 (30 years)

7. PAY BAND, GRADE PAY SYSTEM ABOLISHED

New Pension Structure called “Matrix based open ended pay structure” recommended. Total span of the scale 40 years.

JCM (SS) demand: Abolish pay band, Grade Pay system and open ended pay scales should be introduced.

8. MAXIMUM PAY INCREASE – 14.29%

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

9. COMPARISON BETWEEN MINIMUM AND MAXIMUM PAY – 1:11.4 (18000 : 205400)

Demand of the JCM (SS) – 1:8

10. NUMBER OF PAY SCALES – NOT REDUCED - NO DELAYERING

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

11. ALLOWANCES – NO IMPROVEMENT

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

12. HRA REDUCED TO 26%, 16% AND 8% FOR X, Y AND Z CITIES

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

13. DRIVERS – HIGHER PAY SCALE REJECTED

14. DA FORMULA – NO CHANGE

15. HBA – NO CHANGE – CEILING RAISED TO 25 LAKHS

16. CASUAL LEAVE – NO INCREASE

17. CHILD Care Leave

1st 365 days – Full pay (100%)

Next 365 days – 80% Pay only.

18. MATERNITY LEAVE – NO CHANGE -

19. LEAVE ENCASHMENT AT THE TIME OF RETIREMENT – NO INCREASE MAXIMUM 300 DAYS ONLY

20. MEDICAL

Medical Insurance Scheme for serving and retired employees recommended.

21. TRANSPORT ALLOWANCE - NO HIKE - ONLY 125% MERGER

Pay Level Higher Transport Allowance cities (A, AI) Other places

9 and above 7200 + DA 3600 + DA

3 to 8 3600 + DA 1800 + DA

1 and 2 1350 + DA 900 + DA

22. LEAVE TRAVEL CONCESSION (LTC) – NO CHANGE

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

23. ACCOUNTS STAFF BELONGING TO UNORGANIZED ACCOUNTS – PARITY WITH ORGANISED ACCOUNTS REJECTED.

24. PERIODICAL REVIEW OF WAGES (NOT TEN YEARS) RECOMMENDED. NO PAY COMMISSION REQUIRED

25. PERFORMANCE RELATED PAY SHOULD BE INTRODUCED IN GOVERNMENT SERVICES AND ALL BONUS PAYMENT SHOULD BE LINKED TO PRODUCTIVITY.

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

26. COMPULSORY RETIREMENT AND EFFICIENCY BAR REINTRODUCED

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

27. PROMOTEE AND DIRECT RECRUITS – ENTRY LEVEL PAY ANOMALY IS REMOVED

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

28. CADRE REVIEW TO BE COMPLETED IN A TIME BOUND MANNER.

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

29. NEW PENSION SCHEME – WILL CONTINUE

30. CEA & HOSTEL SUBSIDY

Rate

CEA per month 2250 - 25% increase when DA crosses

Hostel subsidy 6750 – 50& increase when DA crosses

31. GROUP INSURANCE SCHEME

Level Monthly Contribution Insurance Amount

1 to 5 1500 15 Lakhs

6 to 9 2500 25 lakhs

10 and above 5000 50 lakhs

PENSIONARY BENEFITS

32. PENSIONERS – PARITY – LONG STANDING DEMAND OF THE PENSIONERS ACCEPTED

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

33. PENSIONERS – MINIMUM PENSION RS. 9000/-

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

34. PENSIONERS – GRATUITY CEILING RAISED TO 20 LAKHS

35. PENSIONERS – FIXED MEDICAL ALLOWANCE (FMA) – NO CHANGE (RS. 500/-

36. CGHS FACILITIES TO ALL POSTAL PENSIONERS RECOMMENDED

33 Postal dispensaries should be merged with CGHS

37. GRAMIN DAK SEVAKS (GDS) OF THE POSTAL DEPARTMENT DEMAND FOR CIVIL SERVANTS STATUS REJECTED

Recommendation: - The committee carefully considered the demand for treating the Gramin Dak Sevaks as civil servants at par with other regular employees for all purposes, and noted the following:

(a) GDS are Extra-Departmental Agents recruited by Department of Posts to serve in rural areas.

(b) As per the Recruitment Rules the minimum educational qualification for recruitment to this post is class X.

(c) GDS are required to be on duty only for 4 to 5 hours a day under the terms and conditions of their service.

(d) The GDS are remunerated with Time Related continuity Allowance (TRCA) on the pattern of pay scales for regular Government employees plus DA on pro-rata basis.

(e) A GDS must have other means of income independent of his remuneration as a GDS to sustain himself and his family.

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

(M. Krishnan)

Secretary General

Confederation

7th Pay Commission Report : Few Points
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1. Basic Salary Increased by 14.27%.
2. Overall increase in pay by 23.55 %
3. Multiple Factor to arrive at final fig - 2.57
4. Gratuity limit hiked to 20lacs
5. Abolition of Grade Pay n Pay Band.
6. Min Salary -18000
7. Max Salary - 2.25 lacs
8. Pension increase by 24%.