KERAPEX 2016

The  13th Kerala Philately exhibition KERAPEX 2016 is scheduled to commence from 7th Jan to 9th Jan 2016 at  Sree Sankara Hall Thrissur. For prospectus and other details please visit

http://kerapex.blogspot.in/

7th CPC recommends to reduce HRA

The 7th Central Pay Commission has been recommended to reduce the percentage of House Rent Allowance for all categories of Central Government employees rationalized to 24 percent, 16 percent and 8 percent of the 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 when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.


 To read more on this please Click here

Setting up of implementation cell for 7th CPC report by MOF

India post payment bank

1.1 In the Budget 2015-16 speech in the Parliament, the Hon’ble Finance Minister announced the Government’s intention to set up the Payments Bank by Department of Posts to promote financial inclusion and ease access of the people to the formal financial system. The Department of Posts has received ‘In Principle’ approval from RBI on 7th Sept, 2015 for setting up of a Payments Bank.

1.2 The Payments Bank will be set up on a lean operating model. It will focus on financial inclusion by harnessing low-cost technology based solutions to extend access to formal banking especially in rural areas and among unbanked and under banked segments of the society.

1.3 The main objectives of the India Post Payments Bank will be to bring a large number of individuals and small businesses into formal banking channel by facilitating

 Demand Deposits - Savings account of upto Rs. 1 lac and

- Current Accounts with special focus on MSMEs, Small entrepreneurs / merchants, Village Panchayats, SHGs etc.

·         Direct Benefits Transfer (DBT) of social security payments of various Ministries to beneficiaries.

·         Utility bill payments for electricity, water, telephone, gas etc.

·         Payments of various Central and State Govt & Municipal dues and fees of various Universities / Educational institutions.

·         Person to Person remittances both domestic and cross-border with special focus on migrant labourers, low income households.

·         Distribution of third party financial products such as insurance, mutual funds, Pension & credit products.

1.4 Present status:

The Department of posts is seeking necessary Governmental approvals and preparing an implementation plan to set up the payments bank.

Easy steps to calculate new pension as per 7th CPC report

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

Step-I

Multiply 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

 Step-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

Calculation of annual increment as per 7th CPC report

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.

Trade Unions fuming over 7th CPC report- 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.

4. 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.

E-commerce and Core Banking- core areas of focus

The Department of Posts is focused on giving a fillip to e-commerce and core banking solutions, aggressive promotion of mobile money orders, postal life insurance and savings bank accounts, delivery of speed post letters within one day of booking and cent per cent delivery of articles by introducing dedicated mail delivery vehicles and mail routes, said Sanjiv Ranjan, Postmaster General of Kurnool region.

All the maturity and death claims under postal life insurance (PLI) and rural postal life insurance (RPLI) have been settled and there is zero pendency of claims in the Kurnool region, the enterprising Indian Postal Service Officer, who assumed charge as Kurnool PMG a fortnight ago, told The Hindu.

Realtime data upload McCamish system has been introduced to upload all ledgers and claims under PLI and RPLI on a realtime basis to the central server as all the 811 post offices across the country are networked, Mr. Ranjan said. Partial digitisation has been happening manually since 2007 and 549 post offices and 4,000 sub post offices in the country have migrated to McCamish system so far. The remaining would migrate to the system by March next year, he said.

Speed post and articles booked are routed through the Kurnool and Tirupati sorting hubs and the current 90 per cent delivery rate would be improved to 95 per cent by January 2016, the Postmaster General said. Attributing the gap in delivery to refusal of the addressees to accept legal notices and absence of working couples during delivery time, he said an alternative mail arrangement would be evolved by December 15.

To speed up delivery of speed post letters and articles, affected by over-dependence on public transport system, the Postal Department has chalked out mail routes and plans to hire point-to-point mail delivery vehicles to reach even far flung areas to ensure delivery within a day of booking, Mr. Ranjan said.

Governements sets up for one man committee to review pay structure of GDS

The government has formed a committee to review pay structure and social security benefits provided to 'gramin dak sevaks'.The one-man committee will review and suggest changes in existing wage structures, facilities and other social security benefits provided to 'gramin dak sevaks' (GDS), according to a notification by the Communications and IT Ministry.Gramin dak sevaks are extra-departmental agents recruited by the postal department to serve in rural areas.They have been demanding pay and facilities at par with regular postal department employees.

"The question of examining the conditions of service and emoluments and other facilities available to the Gramin Dak Sevaks (GDS) has been under the consideration of the Government of India for some time.The Government has now decided to set up a one-man committee for the purpose," the notification dated November 19 said.The Committee headed by Retired Member of the Postal Services Board Kamlesh Chandra will go into the service conditions of Gramin Dak Sevaks and suggest changes as considered necessary, it said. 

All India GDS Union last week had demanded that the panel should be formed under retired Supreme Court or High Court judge and not under chairmanship of a retired officer.In the letter to Secretary, Department of Posts, the union said that it will go on one-day hunger strike on November 27 at divisional offices, at circle offices on December 4 and in New Delhi on December 10 if the demand is not met.The committee will examine the system of branch post offices, employment conditions and the existing structure of wage and emoluments paid to GDS and recommend necessary changes. 

It will also "examine and suggest any changes in the method of recruitment, minimum qualification for appointment as Gramin Dak Sevaks and their conduct and disciplinary rules, particularly keeping in view the proposed induction of technology in the Rural Post Offices", the notification said.The Committee will function for a period of one year.

Excerpts of 7th CPC report pertaining of Dept. of Posts

**** GOOD NEWS FOR IP / ASP CADRE *** 

The request made to Hon'ble Chairman, 7CPC through Memorandum dated 1/7/2014 and during the course of meeting at Mumbai on 7/11/2014 for up-gradation of GP of Inspector Posts from Rs. 4200/- to Rs. 4600/- is considered. As per the recommendations of the 7CPC, ASP will be placed to higher pay and Superintendent's GP enhanced from Rs. 4800/- to Rs. 5400/-.  CHQ sincerely thanks to 7CPC. 

Our cadre report is at page no. 471. 

Highlights of the 7CPC for Department of Posts employees : 

Postal Services Board :

The Commission has examined the demand for granting apex level to the members of the PSB and is of the view that adequate functional justification for the same does not exist. ( Para 11.8.11)

The Commission however is no t in favour of creating an additional post of member to discharge the financial function and is of the view that the portfolios of the six members can be so re-arranged that the need to create a new post of Member is obviated. ( Para 11.8.12)

IPS (Group – A):

In so far as Director, National Postal Academy is concerned, the view taken is that functional justification from upgrading the post to Apex level does not exist. As far as the rest of the demands for upgradation / creation of posts are concerned, these are administrative matters, which may be taken up with the concerned departments in the government. ( Para 11.8.15)

Postmaster Cadre :

The Commission recommends that while 25 percent of the posts of Senior Post Master may continue to be filled up from Post Master Gr.III through seniority based promotions, eligible officers from the Post Masters’ cadre (Postmaster Gr.II and Postmaster Gr.III) may also be permitted to appear for LDCE along with Inspector (Posts) for the balance 75 percent of the Senior Postmasters’ posts ( Para 11.8.18)

Inspector Cadre :

The Commission, therefore, recommends that Inspector (Posts) who are presently in the GP 4200 should be upgraded to GP 4600. With this upgradation, Inspector (Posts) shall come to lie in an identical grade pay as that of their promotion post of Assistant Superintendent of Posts (ASPOs). A higher grade would thus need to be extended to ASPOs. Accordingly, the Commission recommends that the promotional post of ASPOs be placed in the next higher GP 4800 and further, the post of Superintendent (Posts), which is presently in the GP 4800, be moved up to GP 5400 (PB-2). ( Para 11.8.21)

Postal Assistants / Sorting Assistants / LSG / HSG-II / HSG-I:

The Commission is of the view that there is no justification for enhancement of minimum educational qualifications for Direct Recruits for Postal Assistants/Sorting Assistants from Class XII to Graduation and the entry grade pay from GP 2400 to GP 2800. No justification for upgrading LSG, HSG-II & HSG-I (Para 11.8.23 & 11.8.24)

P A ( SBCO) :

The Commission is therefore of the view that no upgradation is warranted. As regards grant of cash handling allowance, the Commission is of the view that with the spread of banking and internet based payments coming into vogue there is no merit in granting an allowance for handling cash. ( Para 11.8.27).

Postman :

The Commission has noted the entry level qualifications prescribed (Class X or ITI for MTS) as also the work content, and is of the view that there is no justification for further raising the entry grade pay of Postman. ( Para 11.8.29)

Mail Guard :

As no modification in the grade pay of Postman is recommended, the Mail Guard shall also be placed in same pay level. ( Para 11.8.33)

Multi Tasking Staff :

 No upgrade is considered necessary for either MTS-domestic or MTS-foreign posts. ( Para 11.8.37)

Binders :

There is no justification for raising the entry grade pay as sought. ( Para 11.8.39)

Artisans :

The Commission is of the view that no anomaly exists in the present pay structure of these posts. The cadre of artisans in the Department of Posts shall accordingly be extended only the corresponding replacement level of pay. ( Para 11.8.43)

Translation Officer :

The Commission, therefore, suggests that a comparative study of the job profiles be carried out by the department to arrive at the precise job content and a view taken thereafter. ( Para 11.8.45)

Technical Supervisors :

No upgrade is recommended. (11.8.47)

Gramin Dak Sewaks:

The Commission has carefully considered the demand and noted the following:

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

b. As per the RRs, the minimum educational qualification for recruitment to this post is Class X.

c. GDS are required to beon duty only for 4-5 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

Government of India has so far held that the 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 holders of civil posts but not civilian employees.

The Commission endorses this view and therefore has no recommendation with regard to GDS. ( Para 11.8.49 & 11.8.50)

Separate Cadre for S As / M Es :

System Administrators and Marketing Executives have demanded creation of separate cadres with higher pay scales. Presently incumbents of these posts are drawn from the cadre of Postal Assistants/Sorting Assistant Cadre.

The V and the VI CPC have also dealt with this issue and have not recommended separation of cadres. The Commission also does not see any rationale for creating separate cadres. (Para 11.8.51 & 11.8.52)

 To view the report of the 7th CPC in full please Click here

7th CPC- Executive Summary

Chapter - 17 of 7CPC Report 

17.1 : Minimum Pay:

After considering all relevant factors and based on the Aykroyd formula the minimum pay in government is recommended to be set at Rs.18000/- per month. (chapter 4.2)

17.2 : New Pay Structure:

The present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix. Separate pay matrices have been drawn up for civilians, defence personnel and for military nursing service. All existing levels have been subsumed in the new structure; no new levels have been  introduced nor has any level been dispensed with. (para s 5.1.13 to 5.1.17 )

17. 3 :  In the “horizontal range” of the pay matrix level corresponds to a ‘functional role in the hierarchy’ and as the employee’s level rises he or she moves from level to level. The “vertical range” for each level denotes ‘pay progression’ within that level and an employee would move vertically within each level as per the annual financial progression of three percent. The starting point of the matrix is the minimum pay which has been arrived based on 15th ILC norms or the Aykroyd formula. (para 5.1.21)

17.4 : Fitment:

The starting point for the first level of the matrix has been set at Rs.18,000/-. This corresponds to the present starting pay of Rs.7,000/-, which is the beginning of PB-1 viz., Rs.5200/- + GP 1800/-, on the date of implementation of the VI CPC recommendations. Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. (para 5.1.27)

17.5 : Annual Increment :

The rate of annual increment is being retained at 3 percent. (para 5.1.38)

17.6 : Entry Pay:

The differential of entry pay between new recruits and promoted employees at various levels has been done away with. (para 5.1.32 and para 5.1. 33)

17.7 : Modified Assured Career Progression (MACP):

i. This will continue to be administered at 10, 20 and 30 years as before.

ii. In the new Pay matrix, the employees will move to the immediate next level in the hierarchy.

iii. In the interest of improving performance level, the benchmark for MACP has been recommended to be enhanced from ‘Good’ to ‘Very Good’

iv.The Commission has proposed 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. (paras 5.1.44-5.1.46)

17.21: Cadre Review :

To hasten the process of cadre reviews and reduce the time taken in inter-ministerial consultations, it is recommended that the examination of the cadre restructuring proposal should be undertaken at the department level itself with one member each from DoPT and Department of Expenditure attending such meetings chaired by the concerned Secretary of the cadre seeking the review, in the capacity of the cadre controlling officer. The proposal can thereafter be placed before the Cadre Review Committee chaired by the Cabinet Secretary where the concerned Secretaries are represented. (para 7.3.17)

17.22 : Common Categories:

To streamline the common cadres residing in different Departments / Ministries / UTs it is recommended that the government assign specific ministries to be the nodal ministry for each such category. These nodal ministries be tasked with drafting model recruitment rules laying down the educational qualifications, job responsibilities and pay structure for all such categories. A few examples are the Statistical Cadres and Fire-fighting staff.(para 7.7.75)

17.23 : Allowances:

The entire structure of allowances have been examined de novo with the overall aim of transparency, simplification and rationalization, keeping amongst other things, the proposed pay structure in mind. The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but sub summed either in an existing allowance or in newly proposed allowances. Particular emphasis has been placed on simplifying the process of claiming allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix. (para 8.2.5)

17.24 : Most of the allowances that have been retained have been given a raise that is commensurate with the rise in DA. Allowances that are in the nature of a fixed amount but fully indexed to DA have not been given any raise. Regarding percentage based allowances, since the Basic Pay will rise as a result of the recommendations of this Commission, the quantum of percentage based allowances has been rationalized by a factor of 0.8. (para 8.2.3)

17.25 : 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. This would be the ceiling for risk/hardship allowances and there would be no individual RHA with an amount higher than this allowance. (para 8.10.65 and para 8.10.66)

17.26 : House Rent Allowance:

In line with our general policy of rationalizing the percentage based allowances by a factor of 0.8, the Commission recommends that HRA should be rationalized to 24 percent, 16 percent and 8 percent of the 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 when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent. (para 8.7.15)

17.27 : Currently, in the case of those drawing either NPA or MSP or both, the amounts of NPA/MSP are included with the Basic Pay and HRA is being paid as a percentage of the total amount. The Commission recommends that HRA should be calculated as a percentage of Basic Pay only and that add-ons like NPA, MSP, etc. should not be included while working out HRA. (para 8.7.16)

17.28 : The Commission, in the interactions it has had with the men on the ground at all field locations it has visited, has seen first-hand that the lack of proper housing compensation is a source of discontentment among these employees. The service rendered by PBORs of uniformed services needs to be recognized and Housing provisions of PBORs of Defence, CAPFs and Indian Coast Guard have been simplified and HRA coverage has been extended to them. (para 8.7.26)

17.29 : Uniform related allowances have been amalgamated under a simplified Dress Allowance payable annually. It is thus recommended that uniform related allowances be subsumed in a single Dress Allowance (including shoes). (para 8.16.14)

17.30 : Any allowance, not mentioned here (and hence not reported to the Commission), shall cease to exist immediately. In case there is any demand or requirement for continuation of an existing allowance which has not been deliberated upon or covered in this report, it should be re-notified by the ministry concerned after obtaining due approval of Ministry of Finance and should be put in the public domain. (para 8.2.5)

17.32 : Night Duty Allowance:

While the present weightage of 10 minutes for every hour of duty performed between the hours of 22:00 and 06:00 the present prescribed hourly rate of NDA equal to (BP+DA)/200 may be continued, the amount of NDA should be worked out separately for each employee and the existing formulation for giving same rate of NDA for all employees with a particular GP should be abolished.

(para 8.17.77)

17.33 : OTA should be abolished (except for operational staff and industrial employees who are governed by statutory provisions). At the same time it is also recommended that in case the government decides to continue with OTA for those categories of staff for which it is not a statutory requirement, then the rates of OTA for such staff should be increased by 50 percent from their current levels. (para 8.17.97)

17.34 : All non-interest bearing Advances have been abolished. (para 9.1.4)

17.35 : Regarding Motor Car Advance and Motor Cycle/Scooter/Moped Advance, since quite a few schemes for purchase of vehicles are available in the market from time to time. The employees should avail of these schemes and both these advances should be abolished. (para 9.1.7)

17.36 : Regarding other interest-bearing advances, the following is recommended: (para 9.1.8)

i	P C Advance	Rs.50,000 or actual price of PC, whichever is lower	May be allowed maximum five times in the entire service.
ii	HBA	34 times Basic Pay OR Rs.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

17.37 : The three different kinds of leave admissible to civilian/defence employees which are granted for work related illness/injuries–Hospital Leave, Special Disability Leave and Sick Leave are being subsumed and rationalized into a composite new Leave named Work Related Illness and Injury Leave (WRIIL). (para 9.2.36)

1. Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

2. Beyond hospitalization, WRIIL will be governed as follows:

a.  For Civilian employees, RPF employees and personnel of Police Forces of Union Territories: Full pay and allowances for the 6 months immediately following hospitalization and Half Pay only for 12 months beyond that. The  Half Pay period may be commuted to full pay with corresponding number of days of Half Pay Leave debited from the employee’s leave account.

b. For Officers of Defence, CAPFs, Indian Coast Guard: Full pay and allowances for the 6 months immediately following hospitalization, for the next 24 months, full pay only.

c. For PBORs of Defence, CAPFs, Indian Coast Guard: Full pay and allowances, with no limit regarding period.

17.38 : The Rates of contribution as also the insurance coverage under the Central Government Employees General Insurance Scheme have remained unchanged for long. The following rates of CGEGIS are recommended: (para 9.3.6)

Level of Employee	Monthly Deduction(Rs)	Insurance Amount (Rs.)
10 and above	5000	50 00 000
6 to 9	2500	25 00 000
1 to 5	1500	15 00 000

17.39 : A simplified process for Cadre Reviews and revamping of the screening process under Central Staffing Scheme have been recommended. (para 7.3.41)

17.40 : Health Insurance:

The Commission strongly recommends the introduction of health insurance scheme for Central Government employees and pensioners. In the interregnum, for the benefit of pensioners residing outside the CGHS areas, the Commission recommends that 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. This would involve strengthening of administrative capacity of nearest CGHS centres. The Commission recommends that the remaining 33 postal dispensaries should be merged with CGHS. The Commission further recommends that all postal pensioners, irrespective of their participation in CGHS while in service, should be covered under CGHS after making requisite subscription. The Commission recommends that possibility of such a combined network of various medical schemes should be explored through proper examination. (para 9.5.18)

17.41 : Pension:

The Commission recommends a revised pension formulation for civil employees including CAPF personnel and Defence personnel, who have retired before 01.01.2016. This formulation will bring about complete parity of past pensioners with current retirees:

i. All the personnel who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension. In the case of the Defence personnel, total amount so arrived at shall be inclusive of MSP.

ii. The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.

iii. Pensioners may be given the option of choosing whichever formulation is beneficial to them. (para 10.1.67)

17.42 : Since the fixation of pension as per formulation (i) above may take a little time it is recommended that in the first instance the revised pension may be calculated as at (ii) above and the same may be paid as an interim measure. In the event calculation as per (i) above yields a higher amount the difference may be paid subsequently. (para 10.1.68)

17.43 : The Commission recommends enhancement in the ceiling of gratuity from the existing Rs.10 lakh to Rs.20 lakh from 01.01.2016. The Commission further recommends, as has been done in the case of allowances that are partially indexed to Dearness Allowance, the ceiling on gratuity may increase by 25 percent whenever DA rises by 50 percent.(para 10.1.37)

17.44 : Lump sum Compensation for Invalidation due to Disability :

The Commission recommends an increase in the existing lump sum compensation of Rs.9 lakh for 100 percent disability to Rs. 20 lakh. However it finds no justification to recommend broad banding for payment of Ex-gratia award to service personnel boarded out on account of disability/war injury attributable to or aggravated by military service. (para 10.2.65)

17.45 : The Commission notes that cadets are not considered on duty during training and therefore cannot be treated at par with serving defence forces personnel. The Commission, however, keeping in view the facts relating to cadets,recommends an increased ex-gratia disability award from the existing ₹6,300 per month to ₹16,200 per month for 100 percent

disability. (para 10.2.67)

17.46 : Disability Pension:

Keeping in view the tenets of equity, the Commission is recommending reverting to a slab base system for disability element, instead of existing percentile based disability pension regime. Distinct rates separately for officers, JCOs and ORs have been prescribed. (para 10.2.55)

17.47 : 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 five separate circumstances, to be applied uniformly for the defence forces personnel and civilians. (para 10.2.77)

Circumstances	Proposed ( Rs.)
Death occurring due to accidents in course of performance of duties.	25 lakh
Death in the course of performance of duties attribute to acts of violence by terrorists, anti-social elements etc.	25 lakh
Death occurring in border skirmishes and action against militants, terrorists, extremists, sea pirates	35 lakh
Death occurring while on duty in the specified high altitude, inaccessible border posts, on account of natural disasters, extreme weather conditions	35 lakh
Death occurring during enemy action in war or such war like engagements, which are specifically notified by Ministry of Defence# and death occurring during evacuation of Indian Nationals from a war-torn zone in foreign country	45 lakh

LDCE to the cadre of IP and PS Group B

It is learnt that Department will conduct IP and PS Gr. B examinations ONLINE through outsource agency. Outsource agency is yet not finalised. Question Bank is also said to be not ready. Calendar of departmental examinations will be finalized soon.  Pending examinations will be conducted separately yearwise. Therefore LDCEs are excepted after March 2016 only.

7th Pay Commission to submit report on 19th November

To read the news published in daily newspaper 'The Times of India' dated 17.11.2015 Please Click Here


  To read the news published by Press Trust of India (PTI) dated 17.11.2015,
  Please Click here

7th CPC- Central Govt Employees deserves pay hike says a Central Minister

7CPC Chairman Justice A. K. Mathur 

New Delhi: A central minister thinks most central government employees are good workers – and they deserve a pay raise and advocated to implement Seventh pay commission for them from next budget. 

The minister wouldn’t say whether he agrees with the central government proposal not to merge 50 percent dearness allowance (DA) after its hiked to 100 percent, but he did say central government employees should not lose ground as inflation erodes their salaries.

“We realised that government employees are upset as it is becoming difficult for them to manage their household expenses with the high inflation rate. They protested against us not to merge 50 percent dearness allowance with basic pay before implementation of Seventh Pay Commission,” the central minister told us, requesting anonymity.“People that work in the central government, I find they’re hard working, they care about their country, they are patriotic, they do a good job” the minister said.

It is also time to stop demonizing central government employees and to encourage them, he said, the recommendations of Seventh Pay Commission for central government employees will be implemented in the next financial year.

The Seventh Pay Commission, headed by Justice A K Mathur, was appointed by the previous UPA government in February 2014 for 18 months. Its terms was extended in August 2015 by four months till December 31, 2015. The recommendations of the commission would be implemented from January 1, 2016.The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.

Besides pay hikes, the  Pay Commissions recommend to hike medical benefits, House rent allowance, transport allowance and other allowances for central government employees.As part of the exercise, the Commission holds discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services.Pay Commission was ready to submit its report by the end of September but government gave nod to submit its report till December 31.

According to the Minister, the reports of Seventh Central Pay Commission may be implicated from April next year and Finance Minister Arun Jaitley will get the pay panel reports shortly.

7th CPC -Issues & expectations

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

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

Duties of the Seventh Central Pay Commission :

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

Major issues to be resolved :

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

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

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

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

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

What are the hottest rumors?

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

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

Members of the Seventh Central Pay Commission

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

Full time member - Vivek Rae (oil secretary)

Part time member - Rathin Roy (Director, NIPFP)

Secretary - Meena Agarwal (OSD, Department of Expenditure)

Latest update :

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

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

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

Grade Pay is likely to be abolished by 7th CPC and gaps between pay scales may widen and hence 7th CPC scale may some what follow the earlier pay formats (as in 3rd, 4th or 5th CPC)

Government may not risk any adverse effect of disclosures related to pay recommendations on election prospects in upcoming Bihar elections.

Implementation Dates of Previous Pay Commission Recommendations

January 1, 1986 - 4th Pay Commission

January 1, 1996 - 5th Pay Commission

January 1, 2006 - 6th Pay Commission

The Pay Commission Process :

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

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

Rationale for the Seventh Pay Commission :

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

Daily Allowance (DA) has already exceeded 100% of basic pay, and it cannot be merged with basic pay due to the recommendations of the 6th CPC.

Since the wages of some categories of non-government employees are revised at intervals of less than ten years, wages should be revised every five years for central government employees also.

Prompt pay revision of Central Government employees will help reduce the increasing disparities between Central Government employees, public sector employees, bankers, and private sector employees.

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

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

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

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

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

7th CPC as per some media reports has eliminated grade pay system and recommended pay scales similar to earlier pay commissions.

7th CPC as per some media reports has eliminated grade pay system and recommended pay scales similar to earlier pay commissions.

A better way to get rid of corruption in public life than across-the-board increases would be to legalize a commission on services by each and every employee. This would also help improve the productivity of private sector employees. In some private or autonomous banking institutions, for example, employees are paid a reasonable percentage for accomplishments such as encouraging customers to open more accounts.

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

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

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

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