7 th Pay Commission submitted its Report
Highlights of Recommendations of Seventh Central Pay Commission :
1. Recommended Date of implementation: 01.01.2016
2. Minimum Pay: Based on the Aykroyd formula, the minimum pay in government is recommended to be set at ₹18,000 per month.
3. 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.
a) 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.
b) 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.
c) 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.
d) 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.
5. 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.
6. Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.
7. Annual Increment: The rate of annual increment is being retained at 3 percent.
8. Modified Assured Career Progression (MACP):
a. Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”.
b. 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.
c. No other changes in MACP recommended.
9. 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:
Present
|
Proposed
| ||
i.
|
Service Officers
|
₹6,000
|
₹15,500
|
ii.
|
Nursing Officers
|
₹4,200
|
₹10,800
|
iii.
|
JCO/ORs
|
₹2,000
|
₹ 5,200
|
iv.
|
Non Combatants (Enrolled) in the Air Force
|
₹1,000
|
₹ 3,600
|
10. 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.
11. 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.
12. Headquarters/Field Parity: Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.
13. Cadre Review: Systemic change in the process of Cadre Review for Group A officers recommended.
14. 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.
a. 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:
Present
|
Proposed
| ||
i.
|
Service Officers
|
₹21,000
|
₹31,500
|
iii.
|
JCO/ORs
|
₹14,000
|
₹21,000
|
This
would be the ceiling for risk/hardship allowances and there would be no
individual RHA with an amount higher than this allowance.
b. 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.
c. 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.
d. Any allowance not mentioned in the report shall cease to exist.
e. Emphasis has been placed on simplifying the process of claiming allowances.
15. Advances:
a. All non-interest bearing Advances have been abolished.
b. 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.
16. 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
|
17. Medical Facilities:
a. Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended.
b. 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.
c. All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.
18. 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.
19. 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.
20. 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.
21. 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.
22. 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.
23. 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.
24. 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.
25. 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.
26. There are few recommendations of the Commission where there was no unanimity of view and these are as follows:
i. The Edge: An edge is presently accordeded to the IndianAdministrative
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.
ii. 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-Ã -vis the
IAS. Shri Vivek Rae, Member, has not agreed with this view and has
recommended review of the Central Staffing Scheme guidelines.
iii. 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.
iv. 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.
Click here to view the report of the Seventh Central Pay Commission.
PHOTOS
OF DHARNA BY NATIONAL JOINT COUNCIL OF ACTION (NJCA) AT JANTAR MANTAR NEW
DELHI ON 19-11.2015
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