Presented To : Prof. Poonam Arora

Presented By: Bhumika Chauhan(14) Sunil Rawat(50)

Source: www.seventhpaycommissionnews.com

WHAT IS A PAY COMMISSION ?

The pay commission is an administrative system/ mechanism that the government of India set up in 1956 to determine the salaries of government employees.

Since India’s independence ,seven pay commissions have been set up on a regular basis to review and make recommendations on the work and pay structure of all civil and military divisions of the government of India.

Headquartered in Delhi, the commission is given 18 months from the date of its constitution to make its recommendations.

ALL PREVIOUS PAY COMMISSION HIGHLIGHTS

First Pay Commission: The first pay commission was established on January, 1946

and was submitted to interim government of India. Headed by Srinivasa Varadachariar.

Second Pay Commission: The second pay commission was set up in August 1957, 10

years after independence. The second pay commission had a financial impact of Rs

396 million. Chairman of the commission was Jagannath Das.

CONTI…. Third Pay Commission: The third pay commission set up in April 1970. The cost of the proposals was 1.44 billion Chairman was Raghubir Dayal. The third pay commission (3CPC) added three very

important concepts of Inclusiveness, Comprehensibility, an adequacy for pay structure to be sound in nature.

Fourth Pay Commission: Constituted in June 1983. The financial burden on government was 12.82 billion. Chairman of fourth pay commission was P.N. Singhal.

CONTI…. Fifth Pay Commission: Setting up the Fifth pay commission was issued on 9 April

1994 but started functioning only on 2 May 1994. Chairman of Fifth pay commission was Justice S. Ratnavel

Pandian.

Sixth Pay Commission: In July 2006, the cabinet approved setting up of the sixth pay

commission. Chairman was Justice B.N. Sri Krishna. Focus mainly on removing ambiguity in respect of various

pay scales and to bring the idea of pay bands.

7TH PAY COMMISSION The government of India has initiated the process to

constitute the 7th Pay Commission along with the finalization its terms of reference.

On September 25, 2013 the finance minister P Chidambaram announced that the Prime minister Manmohan Singh has Approved the constitution of the 7th pay commission.

Its recommendations are likely to be implemented with effect from January 1, 2016.

Justice A. K. Mathur will be heading the 7th Pay Commission, announcement of which was done on 4th February 2014.

CONTI…. Key members of this Pay Commission:

Name Designation Role in

Commission

Justice Ashok Kumar Mathur

Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal

Chairman

Vivek Rae Secretary, Ministry of Petroleum and Natural Gas

Member (Full Time)

Dr. Rathin Roy Director, NIPFP Member (Full Time)

Meena Agarwal OSD, department of Expenditure, Ministry of Finance

Secretary

KEY POINTS OF 7TH PAY COMMISSION

The commission has recommended a 16% hike in basic salary + increase in DA and allowances like HRA.

The total increase will be 23.55% of the Gross salary( Basic+ DA+ Allowances)

The minimum pay in govt. is recommended to be set at Rs. 18,000 per month.

Maximum pay is recommended as Rs. 2,25,000 per month.

Rs. 2,50,000 per month for Cabinet Secretary and others at the same level.

The rate of annual increment retained at 3%.

CONTI…. Short service commissioned officers will be allowed

to exit the armed forces at any point in time between 7 to 10 years of service.

Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or newly proposed allowances.

The commission has proposed a status quo on the retirement age of central government employees. Retirement age for staff employees is 60 years.

Total impact of are expected to entail an increase of 0.65% points in the ratio of expenditure on to GDP.

Recommendations will impact 47 lakh serving govt employees;52 lakh pensioners, including defence personnel.

CONTI…. One Rank One Pension proposed for civilian

government employees on line of OROP for armed forces.

Ceiling of gratuity enhanced from Rs. 10 lakh to Rs. 20 lakh; ceiling on gratuity to be raised by 25% whenever DA rises by 50%.

Military Service Pay (MSP) ,which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only.

MSP for services officers more than doubled to Rs.15,500 per month from Rs. 6,000 currently; for nursing officers to Rs 10,800 from Rs. 4,200; for JCO/ORs to Rs 5,200 from Rs. 2,000 and non- combatants to Rs.3,600 from Rs. 1,000.

CONTI…. Financial impact of implementing

recommendations will be Rs. 1.02 lakh crore-Rs. 73,650 crore to be borne by Central Budget and Rs. 28,450 crore by Railway Budget.

The 16% hike in basic salary is much lower than the 35% hike employees got in the sixth Pay Commission.

IMPORTANT DEMANDS OF THIS PAY COMMISSION

Pay scales are calculated on the basis of pay drawn in pay band + GP+ 100% DA by employees as on 01/01/2014.

7th CPC report should be implemented w.e.f. 01/01/2014. In future five year wage revision.

Scrap New Pension Scheme and cover all employee under Old Pension and Family Pension Scheme.

JCM has proposed minimum wage for MTS(skilled) Rs. 26,000 p.m.

Ratio of minimum and maximum wage should be1:12.5. General formula for determination of pay scale based on

minimum minimum living wage demanded for MTS is pay in PB+GPx3.7.

CONTI…. Annual rate of increment @3% of the pay. Fixation of pay on promotion= minimum two increments. Dearness Allowances on the basis of 12 monthly average of

CPI, Payment on 1st Jan and 1st July every year. Overtime Allowances on the basis of total Pay + DA+ Full TA. Liabilities of all Government dues of persons died in harness be

waived. Transfer Policy- Group ‘C and D’ Staff should not be

transferred. DoPT should issue clear cut guideline as per 5th CPC recommendation. Govt should form a Transfer Policy in each department for transferring on Mutual basis on promotion. Any order issued in violation of policy framed be cancelled by head of department on representation.

CONTI…. (a) The pay structure demanded is as under:- (Open ended pay scales-Total 14 pay scales)

SRNO. PAY CLASS PAY 1 PB-1,GP Rs. 1800 26,0002 PB-1,GP Rs. 1900 PB-1,GP Rs.2000 33,0003 PB-1,GP Rs. 2400 PB-1,GP Rs.2800 46,0004 PB-2,GP Rs. 4200 56,0005 PB-2,GP Rs. 4600 PB-2,GP Rs. 4800 74,0006 PB-2,GP Rs. 5400 78,0007 PB-3,GP 5400 88,0008 PB-3,GP 6600 102,0009 PB-3,GP 7600 120,00010 PB-4,GP 8900 148,00011 PB-4,GP 10000 162,00012 HAG 193,00013 APEX SCALE 213,00014 CABINET SECRETARY 240,000

CONTI…. (b) New Pay scales minimum in comparison

with Sixth CPC Grade Pay. SL GRADE PAY OF 6TH CPC

MINIMUM OF THE NEW PAY SCALE

1 1800 26,0002 1900 31,0003 2000 33,0004 2400 41,0005 2800 46,0006 4200 56,0007 4600 66,0008 4800 74,0009 5400 78,00010 5400 IN PB-3 88,00011 6600 102,00012 7600 120,00013 8700 139,00014 8900 148,00015 10000 162,00016 12000 193,00017 75000-80000 202,00018 80000 Fixed 213,00019 90000 fixed 240,000

CONTI…. (c)Wages and service conditions of Garmin Dak Sevaks is

to be examined by 7th CPC itself. Detailed Memorandum will be submitted by Postal Federations and GDS Unions.

Transport Allowance-

X classified City Other Places Rs. 7500+ DA Rs. 3750+DA

The stipulation for TA that the Govt. employee should be on duty in his headquarters for certain number of days during the calender month should be removed.

CONTI…. Deputation Allowance double the rates and should be paid

10% of the pay at same station and 20% of the pay at outside station.

Classification of the post should be executive and non-executive instead of present Group A.B.C.

Special Pay which was replaced with Special/Allowance by 4th CPC be bring back to curtail pay scales.

Scrap downsizing, outsourcing and contracting of govt. jobs. Regularize casual labour and count their entire service after

first two year, as a regular service for pension and all other benefits . They should not be thrown out by engaging contractors workers.

CONTI…. The present MACPs Scheme be replaced by giving five

promotion after completion of 8,15,21,26 and 30 year of service with benefits of stepping up of pay with junior and also hierarchical pay scales.

PLB being bilateral agreement ,it should be out of 7th CPC preview.

Housing Facility:-(a) To achieve 70% houses in Delhi and 40% in all other

town to take lease accommodation and allot to the govt. employees.

(b) Land and building acquired by it department may be used for constructing houses for govt. Employees.

CONTI…. House Building Allowance:- (a) Simplify the procedure of HBA(b) Entitle to purchase second and used houses Common Category – Equal Pay for similar nature of work

be provided. Compassionate appointment –remove ceiling of 5% and

give appointment within three months. Traveling Allowance:-

Category A1, A class city Other Cities

Executive Rs. 5000 per day + DA Rs. 3500 per day+ DA

Non- Executive Rs. 4000 per day+ DA Rs. 2500 per day+ DA

CONTI…. Composite Transfer Grant:--Executive class 6000 kg Goods Train/Rate per km by road 8 Wheeler Wagon Rs.50+DA(Rs. 1 per kg and single container per km)-Non- Executive Class 3000kg-do- - do- Children Education Allowance should be allowed up to Graduate, Post Graduate, and all Professional Course. Allow any two children for children Education Allowance. Fixation of pay on promotion –two increments in feeder

grade with minimum benefit of Rs. 3000. House Rent Allowance-X class Cities 60%Other classified Cities 40%Unclassified Locations 20%

CONTI…. Compensatory City Allowance. ‘X’ Class Cities ‘Y’ Class CitiesA. Pay up to Rs. 50,000 10%B. Pay above Rs. 50,000 6% minimum Rs. 5000 3%

minimum Rs. 2500. Patient Care Allowance to all Para-medical and staff

working in hospitals. All allowances to be increased by three times. NE Region benefits –Payment of Special Duty

Allowance@ 37.5% of pay. Training:- Sufficient budget for in-service training. Leave Entitlement-

CONTI….1) Increase Casual leave 08 to 12 days & 10 days to 15 days.2) Declare May Day as National Holiday.3) In case of Hospital Leave , remove the ceiling of maximum

24 months leave and 120 days full payment and remaining half payment.

4) Allow accumulation of 400 days earned Leave.5) Allow encashment of 50% leave while in service at the credit

after 20 years qualifying Service.6) National Holiday Allowance(NHA)- Minimum one day

salary and eligibility criteria to be removed for all Non Executive Staff.

7) Permit Encashment of Half Pay Leave.8) Increase Maternity leave to 240 days to female employees

& increase 30 days .Paternity Leave to male employees.

CONTI…. LTC(a) Permission to travel by air within and outside the NE

Region.(b) To increase the periodicity once in a two year.(c) One visit outside country in a lifetime. Income Tax:1) Allow 30% standard deduction to salaried employees.2) Exempt all allowances.3) Raise the ceiling limit as under: (a) General- 2 lakh to 5 lakh. (b) Sr. Citizen – 2.5 lakh to 7 lakh.

CONTI….(c) Sr. Citizen above 80 years of age -5 lakh to 10 lakh4)No income Tax on pension and family pension and Dearness Relief. Effective grievance handling machinery for all non-

executive staff.a) Spot settlementb) Maintain schedule of three meetings in a yearc) Department Council be reviewed at all levels d) Arbitration Award be implemented within six month, if

not be discussed with Staff Side before rejection for finding out some modified form of agreement.

CONTI…. Date of Increment -1st January and 1st July every year. In

case of employees retiring on 31st December and 30th June, they should be given one increment on last ay of service, i.e, 31st December and 30th June , and their retirements benefits should be calculated by adding the same.

Appoint Arbitrator for shorting all pending anomalies of the 6th CPC.

General Insurance Active Insurance Scheme covering risk up to Rs. 7,50,000/- to Non Executive & Rs. 3,50,000/- to skilled staff by monthly contribution of Rs. 750/-& Rs. 350/- respectively.

Point to point fixation of pay. Extra benefits to Women employees:-

CONTI….

1) 30% reservation for women2) Posting of husband and wife at same station3) One month special rest for chronic disease4) Conversion of Child Care Leave into Family Care

Leave.5) Flexi time. Gratuity:1) Existing ceiling of 16 ½ months be removed and

Gratuity be paid @ half month salary for every year of qualifying service.

2) Remove ceiling limit of Rs. 10 lakh for Gratuity.

CONTI…. Pension:1) Pension@67%of Last Pay Drawn (LPD) instead of 50%

presently.2) Pension after 10 years od qualifying service in case of

resignation.3) Increase pension age-based as under: 65years-70% of Last Pay Drawn(LPD) 70years -75% of LPD 75years-80% of LPD 80years-85% of LPD 85years-90% of LPD 90years-100% of LPD

CONTI….4) Parity of pension to retirees before 1/1/2006.5) Enhanced family pension should be same in case of death in harness and normal death.6)After 10 years, family pension should be 50% of LPD.7) Family pension to son up to the age of 28 years looking to the recruitment age.8) Fixed Medical Allowance (FMA) @ Rs. 2500/-month.9) Extend medical facilities to parents also.10) HRA to pensioners.11) Improvement in ex-gratia pension to CPF/SRPF retirees up to 1/3rd of full pension.

THANK YOU!!!!!

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