7TH PAY COMMISSION REPORT SUBMITTED TO GOVERNMENT OF INDIA ON 19.11.2015
MOST DISAPPOINTING AND RETROGRADE RECOMMENDATIONS – NO CHANGE IN MACP
IMPORTANT RECOMMENDATIONS
1. DATE OF EFFECT – 01.01.2016
2. MINIMUM PAY – 18000 Based on the Aykroyd formula, the minimum pay in government is recommended to be set at ₹18,000 per month
3. FITMENT FORMULA – The
fixation of revised pay has been greatly simplified in the new pay
matrix and will not involve further calculations. The basic pay being
drawn by any person on the date of implementation is to be multiplied by a factor of 2.57 and the figure so obtained will Report of the Seventh CPC be matched for the closest figure in the level pertaining to his/her existing grade pay and fixed there.
PAY BAND
|
GRADE PAY
|
MULTIBLE FACTOR
|
I – 5200-20200
|
1800, 1900, 2000, 2400 &2800
|
2.57
|
II – 9300 - 34800
|
4200, 4600, 4800 & 5400
|
2.62
|
III – 15600-39100
|
5400, 6600 & 7600
|
2.67
|
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 tabke
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.
7TH CPC PAY FIXATION ILLUSTRATION
A. Select your basic pay as on 01.01.2016 including grade pay - It is your basic pay
B. Identify your grade pay and pay band to select the Pay Matrix Table No: 5 to identify your level according to your Grade pay
C. Multiply your basic pay as given below:
PAY BAND
|
GRADE PAY
|
MULTIBLE FACTOR
|
I – 5200-20200
|
1800, 1900, 2000, 2400 &2800
|
2.57
|
II – 9300 - 34800
|
4200, 4600, 4800 & 5400
|
2.62
|
III – 15600-39100
|
5400, 6600 & 7600
|
2.67
|
|
|
|
D. Multiply your basic pay [Pay + Grade pay] as on 01,01,2016 with the above factor according to your Grade pay and round-off to the nearest rupee, and obtain result = X
E. The
figure so arrived at, i.e., ‘X’ or the next higher figure closest to it
in the Level assigned to your grade pay, will be the new pay in the new
pay matrix. In case the value of ‘X’ is less than the starting pay of
the Level, then the pay will be equal to the starting pay of that level.
F. The
above arrived figure is your Rationalized entry pay i.e. your new basic
pay as on 01.01.2016. In the above formula, your existing DA 119 is
automatically merged with the multiply factor.
G. This
is the first pay commission avoiding disparity in the pay fixation in
arriving arrears and all the officials from new recruits to retiring
person will get the benefit equally as per the above multiple factor
according your Grade pay.
ILLUSTRATION:
PAY BAND
|
GRADE PAY
|
BASIC PAY AS ON 01.01.2016
|
TOTAL PAY AS ON 01.01.2016
|
MULTIBLE FACTOR
|
NEW BASIC PAY AS ON 01.01.2016
|
ROUNDED NEW BASIC PAY AS ON 01.01.2016
|
I
|
1800
|
7500
|
9300
|
2.57
|
23901
|
24200
|
1900
|
8500
|
10400
|
26728
|
26800
|
2000
|
9500
|
11500
|
29555
|
30200
|
2400
|
11000
|
13400
|
34438
|
35300
|
2800
|
13000
|
15800
|
40606
|
41600
|
II
|
4200
|
15000
|
19200
|
2.62
|
50304
|
50500
|
4600
|
18000
|
22600
|
59212
|
60400
|
4800
|
21000
|
25800
|
67596
|
68000
|
5400
|
24000
|
29400
|
77028
|
77900
|
Note:
The basic pay mentioned above as on 01.01.2016 is only example for the
illustration. You replace it with your basic pay as on 01.01.2016 and
calculate your pay. It is simple mechanism.
4. FIXATION ON PROMOTION – NO CHANGE – ONLY ONE INCREMENT IN THE OLD SCALE
A. For
those who have been promoted from the previous level, the fixation of
pay in the new level will depend on the pay they were already drawing in
the previous level, after grant of 3% increment, the official pay will be fixed to the next level.
- When
the employee receives a promotion or a non-functional financial
upgrade, he/she progresses one level ahead on the horizontal range –
Para 5.1.23. [As per this para, if any officials will get LSG/HSG
promotion after getting MACP, the officials will get fixation benefit
to the next stage as mentioned in Matrix table.]
5. ANNUAL INCREMENT – 3% NO CHANGE
a. Suppose,
Ms. ABC, who, after having been fixed in the Pay Matrix, is drawing a
Basic Pay of ₹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 ₹33,300. [Even though 3% increment is
only for calculation, but the official will be placed one stage own in
the same level.
b. WITH HOLDING OF ANNUAL INCREMENT - The
Commission is therefore proposing withholding of annual increments in
the case of those employees who are not able to meet the benchmark
either for MACP or a regular promotion within the first 20 years of
their service
6. MODIFIED ASSURED CAREER PROGRESSION – NO CHANGE
a. The
inherent issues in the existing pay structure owing to which there was
widespread resentment have been set right by way of rationalisation of
pay levels, abolition of pay band and grade pay Report of the Seventh CPC and introduction of a matrix based open pay structure. Hence, there is no justification for increasing the frequency of MACP
b. No change in 10, 20, 30 years - 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.
7. PAY BAND, GRADE PAY SYSTEM ABOLISHED - 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.
8. MAXIMUM PAY INCREASE – 14.29% - This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the
rate
of Dearness Allowance would be 125 percent at the time of
implementation [01.01.2016] of the new pay. Accordingly, the actual
raise/fitment being recommended is 14.29 percent
Comments:
[ Actually our basic pay + Grade pay = 100% DA as on 01.07.2015-119%
and as on 01.01.2016 presumed as 125%. As such, at present we are
getting 225% [100 + 125} i.e.2.25 , where as our fitment formula
recommended as 2.57. The difference of 2.57-2.25 = 0.32 % is the only
real increase of our existing pay.]
9. 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. 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.
10. HRA REDUCED TO 26%, 16% AND 8% FOR X, Y AND Z CITIES - 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
11. Advances: 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
12. DA FORMULA – NO CHANGE FOR FUTURE INDEX - Commission recommends continuance of the
existing formula and methodology for calculating the Dearness Allowance
13. 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:
|
Present
|
Proposed
|
Level of Employee
|
Monthly Deduction
(₹)
|
Insurance Amount
(₹)
|
Monthly Deduction
(₹)
|
Insurance Amount
(₹)
|
10 and above
|
120
|
1,20,000
|
5000
|
50,00,000
|
6 to 9
|
60
|
60,000
|
2500
|
25,00,000
|
1 to 5
|
30
|
30,000
|
1500
|
15,00,000
|
14. COMPARISON BETWEEN MINIMUM AND MAXIMUM PAY – 1:11.4 (18000 : 205400)
15. NUMBER OF PAY SCALES – NOT REDUCED - NO DELAYERING
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 - Splitting of Home Town LTC for
employees Posted in North East, Laddakh, Andaman & Nicobars and
Lakshdweep allowed.
23. ACCOUNTS STAFF BELONGING TO UNORGANIZED ACCOUNTS INCLUDING SBCO STAFF – PARITY WITH ORGANISED ACCOUNTS REJECTED - The
Commission has noted that the stipulated entry level qualification and
recruitment process of Postal Assistants (SBCO) is similar to that of
direct recruit Postal Assistants in the Postal Assistants’ cadre and
their promotional channel is also identical. The Commission is therefore
of the view that no up gradation is warranted
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 - 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. IPO/ASP/SP SCALE UPGRADED : Commission
has noted that the VI CPC had placed Inspector (Posts) at par with
Inspector of CBDT/CBED. Subsequently the Inspector of CBDT/CBE were
elevated to GP 4600. The Commission has further noted that the Inspector
of Posts and Inspector of CBDT/CBED are recruited through the same
combined graduate level examination. Therefore the commission
recommended 4600 GP for IP and 4800 GP and 5400 GP for SPOs.
32. ADDITIONAL WORK ALLOWANCE - 2% of the Basic Pay per month - 10% of the Basic pay if period exceeds 45 days.
33. DAILY ALLOWANCE:
LEVEL
|
ACCOMMODATION CHARGES
|
TRAVELLING CHARGES
|
DAILY ALLOWANCE LUMP SUM AMOUNT
|
14 and above 7500
|
7500
|
AC Taxi charges up to 50 km
|
1200
|
12 and 13 4500
|
4500
|
Non-AC Taxi charges up to 50 km
|
1000
|
9 to 11 2250
|
2250
|
338 per day
|
900
|
6 to 8 750
|
750
|
225 per day
|
800
|
5 and below 450
|
450
|
113 per day
|
500
|
NOTE: The Lump sum amount will increase by 25 percent whenever DA increases by 50 percent.
34. Regarding Personal and HBA interest-bearing advances, the following is recommended
NAME OF THE ADVANCE
|
RECOMMENDED CEILING
|
RECOMMENDATIONS
|
PC Advance
|
50,000 or actual price
of PC, whichever is
lower
|
May be allowed maximum five times in the
entire service.
|
HBA
|
34 times Basic Pay
OR
25 lakh
OR
anticipated price of
house, whichever is
least
|
The requirement of minimum 10 years of continuous service to avail of HBA should be
reduced to 5 years.
If both spouses are government servants,
HBA should be admissible to both separately.
Existing employees who have already taken
Home Loans from banks and other financial
institutions should be allowed to migrate to
this scheme.
|
35. GDS: The Supreme Court judgment also states that GDS are only holders of civil posts but not civilian employees. The Commission endorses this view and therefore has no recommendation with regard to GDS
PENSIONARY BENEFITS
1 . PENSIONERS – PARITY – LONG STANDING DEMAND OF THE PENSIONERS ACCEPTED - 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.
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
2 . PENSIONERS – MINIMUM PENSION RS. 9000/- (50% of the minimum pay recommended by the
7th CPC)
3. . PENSIONERS – 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.
4.. PENSIONERS – FIXED MEDICAL ALLOWANCE (FMA) – NO CHANGE (RS. 500/-
5. 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.
6. 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.
7. 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.
8.. 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.
Thanks to
Shri. J.SUKUMAR
EX. GENERAL SECRETARY
AISBCE UNION
MADURAI - 625016
Allotments and Reallotments in PS Group B cadre
Circle
Office, Hyderabad, vide memo no ST/12-1/2015/II dated 23.11.2015, has
ordered the following reallotments to the existing PS Group B officers
and allotments to the officers who got regular promotion and stands
allotted to AP Circle.
Deputation of Sri V.Ramulu, PMG, Kozhicode to AP State Govt.
It
was ordered by Postal Directorate,vide its memo no PF-IPOS-128/SPG
dated 18.11.2015, that the services of Sri V.Ramulu, presently posted as
PMG, Northern Region, Kerala circle, Kozhicode are placed at the
disposal of Govt of Andhra Pradesh. The tenure of deputation of the
officer will be for a period of two years.