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
|
