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7CPC Recommendations – Highlights
Considering to make the service condition of all the service employees ameliorating so that they may perform their duty without worrying about their butter and bread.
1. Minimum Pay
1. Minimum Pay
Minimum Pay which was Rs. 7000 in the 6CPC has been fixed now at Rs. 18,000/-. A Multiplication factor of 2.57 has been used in arriving at this minimum pay.
2.Maximum Pay:
Maximum Pay of Rs.2,25,000 for Apex Scale and Rs.2,50,000 for Cabinet Secretary and others presently at the same pay level.
3. Fitment Formula:
The fitment formula as far as existing employees are concerned is 2.57.
eg. 7CPC pay of the employees who are presently in the pay band of 5200 – 20200 with grade pay of Rs. 1800, will be calculated by multiplying the factor of 2.57 with their existing basic pay (pay in pay band + grade pay)
4. Date of Effect of 7CPC Pay:
7th pay Commission pay will be effective from 1st January 2016.
5. Annual Increment:
7th Pay Commission has recommended for Uniform Annual Increment of 3%
6. Modified Assured Career Progression (MACP):
Existing Performance benchmarks for MACP is “Good”. 7th Pay Commission proposes that it should be “Very Good”. 10, 20 , and 30 years Slab continues.
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.
7. 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 | |
| Service Officers | ₹6,000 | ₹15,500 |
| Nursing Officers | ₹4,200 | ₹10,800 |
| JCO/ORs | ₹2,000 | ₹ 5,200 |
| Non Combatants (Enrolled) in the Air Force | ₹1,000 | ₹ 3,600 |
8. 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.
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.
Headquarters/Field Parity: Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.
9. Cadre Review:
Systemic change in the process of Cadre Review for Group A officers recommended.
10. 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.
11. 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.
12. H R A :
| Population of Cities/Towns |
Class of
Cities/Towns |
HRA rates as % of Basic Pay
(including MSP and NPA) |
| 50 lakh and above |
X
|
24
|
| 50–5 lakh |
Y
|
16
|
| Below 5 lakh |
Z
|
8
|
Transport Allowance:
| Pay Level |
Higher TPTA Cities
(₹ pm) |
Other Places
(₹ pm) |
| 9 and above | 7200+DA | 3600+DA |
3 to 8
| 3600+DA | 1800+DA |
1 and 2
| 1350+DA | 900+DA |
The following table would be useful to equate the existing pay band / Grade pay structure with the New Pay level
Levels as per the Pay Matrix
Existing Pay
Bands |
Existing levels of
Grade Pay | Available for* | New Levels |
PB-1
| 1800 |
C
|
1
|
| 1900 |
C
|
2
| |
| 2000 |
C,D
|
3
| |
| 2400 |
C
|
4
| |
| 2800 |
C,D
|
5
| |
PB-2
| 3400 |
D
| 5A |
| 4200 |
C,D
|
6
| |
| 4600 |
C,D
|
7
| |
| 4800 |
C,D
|
8
| |
| 5400 |
C
|
9
| |
PB-3
| 5400 | C,D,M | 10 |
| 5700 |
M
| 10A | |
| 6100 |
D
| 10B | |
| 6100 |
M
| 10B | |
| 6600 | C,D,M | 11 | |
| 7600 |
C
| 12 | |
PB-4
| 7600 |
M
| 12 |
| 8000 |
D
| 12A | |
| 8400 |
M
| 12B | |
| 8700 |
C
| 13 | |
| 8700 |
D
| 13 | |
| 8900 |
C
| 13A | |
| 8900 |
D
| 13A | |
| 9000 |
M
| 13B | |
| 10000 | 14 | ||
| HAG | 15 | ||
| HAG+ | 16 | ||
| Apex | 17 | ||
| Cabinet Secretary, Defence Chiefs | 18 | ||
| *C: Civil; D: Defence; M: Military Nursing Service (MNS) | |||
13. Advances:
All non-interest bearing Advances have been abolished.
Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to ₹25 lakhs from the present ₹7.5 lakhs.
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:
| Pay level | Present Insurance | Proposed Insurance | Present Monthly Deduction | Proposed Monthly Deduction |
| 10 and above | 1,20,000 | 50,00,000 | 120 | 5000 |
| 6 to 9 | 60,000 | 25,00,000 | 60 | 2500 |
| 1 to 5 | 30,000 | 15,00,000 | 30 | 1500 |
14. Health Insurance Scheme
The Commission strongly recommends the introduction of health insurance scheme for CentralGovernment 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. However, this step will go a long way in ameliorating the pending grievances of these pensioners.
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.
15. Fixation of Pension:
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.
16. Gratuity
7th Pay Commission has proposed for Enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh. The Commission has also recommended that the ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.
17. Disability Pension for Armed Forces:
The Commission has recommended for reverting to a slab based system for disability element, instead of existing percentile based disability pension.
18. NPS:
7th Pay Commission has recommended for improving the present National Pension System in view of many grievances reported.
19. Leave:
Casual Leave : No Change recommended
Chile adoption Leave : No Change
Child Care Leave: Commission recommends that CCL should be granted at 100% of salary for first 365 days but at 80% for next 365 days. The Commission has also recommended for granting Child Care Leave Single Male Parents
Commuted Leave: No Change
Earned Leave : No Change with respect to encashment
Leave No due : No Change
Paternity Leave : No Change
Study Leave : No Change
20. GPF
Status quo is recommended as far as GPF is concerned
21. Children Education Allowance:
On the whole, the Commission is of the view that quantum of CEA should be calibrated in such a manner that the main objective is met without the government entering into the field of subsidizing private education. Hence, taking into account the various items of expenditure
that are reimbursed as a part of this allowance, the following is recommended:
that are reimbursed as a part of this allowance, the following is recommended:
Component
|
Recommended rate
|
Remarks
|
CEA (₹ pm)
|
1500×1.5 = 2250
|
Whenever DA increases by 50%, CEA shall increase by 25%
|
Hostel Subsidy (₹ pm)
|
4500 x 1.5 = 6750 (ceiling)
|
Whenever DA increases by 50%, Hostel
Subsidy shall increase by 25% |
The allowance will continue to be double for differently abled children.
Also, the extension of scope of the allowance beyond Class XII was not accepted .
This will impact 47 lakh employees and 52 lakh pensioners.
The impact of the recommendations amounts to 0.6 per cent of GDP.
Overall increase of 23.55 per cent in pay, allowances, and pension .
This will also benefit staff of autonomous bodies, universities and public sector units. adding that while the government would review the report soon, the State governments would take their own view on it.
- Based on the Aykroyd formula, the minimum pay is recommended to be set at Rs. 18,000 pm and Rs. 2,25,000 pm for Apex Scale and Rs. 2,50,000 pm for Cabinet Secretary and others presently at the same pay level.
- The overall increase in pay and allowance and pensions over the business-as-usual scenario will be 23.55 %, Within this, the increase in pay will be 16 %, in allowances 63 per cent and in pension would be 24 %.
- The impact the recommendations will be Rs 1.02 Lakh crore ( Rs 73,650 cr on Central Budget and Rs 28,450 cr on Railway Budget).
- Abolished 52 allowances altogether and another 36 allowances have been subsumed either in an existing allowance or in newly proposed allowances.
- 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.
- Annual increment will be 3 %.
- Without calling it OROP, a revised pension formulation meeting FULL PARITY is recommended. this is for all Central pensioners, including para-military personnel and Defence staff. The formulation will bring parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.
- Civil servants today need to be focused on outcomes, not processes, and have to be more accountable for delivery. They have to be agents of change and to this end need to be more agile, more technically savvy and to be able to ensure the economic and public service reforms that are essential.
- Introduction of the Performance Related Pay (PRP) for all categories of Central employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. It also suggested that the PRP should subsume the existing Bonus schemes.
- A relook on the Seniority driven approach within the various services, has to be done. Persons who have the requisite domain knowledge and sufficient experience in the departments and areas that they are required should head.
- In view of grievances relating to New Pension Scheme (NPS), it suggested steps to improve the functioning of scheme and establishment of a strong grievance redressal mechanism.
- Consolidated monthly pay package of Rs 4.50 lakh and Rs 4 lakh for chairpersons and members respectively of the regulatory bodies.
- No change in the superannuation age of Central armed forces personnel.
- Introduction of a health insurance scheme for employees and pensioners. Meanwhile for the benefit of pensioners outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS(MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis.
- All postal pensioners must be covered under CGHS. All postal dispensaries should be merged with CGHS.
- Under the central government employees group insurance scheme, the rates of contribution as well as insurance coverage have now been enhanced. Monthly deduction has been raised from Rs 120 per month to Rs 5,000 and insurance cover from Rs 1.2 lakh to Rs 50 lakh for senior most level. At the bottom of the matrix, it has been raised from Rs 30 per month to Rs 1,500 and the cover hiked from Rs 30,000 to Rs 15 lakh.
- The commission has recommended abolition of all non-interest bearing advances and increased the limit for interest-bearing advances for buying home from Rs 7.5 lakh to Rs 25 lakh.
- House rent allowance – a key perk — has also been rationalized at 24%, 16% and 8% of the basic pay, depending on the city where the employee works, and would increase when the dearness allowance crosses 50% and 100%.
- Under the Modified Assured Career Progression (MACP) the Commission has 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.
- A fresh IAS recruit will get a basic salary of Rs 56,000 a month against Rs 23,000 currently, while a sepoy in the Indian Army will earn Rs 21,700 per month from Rs 8,460 currently. In addition, employees are paid dearness allowance and house rent among many other allowances.
- Financial ‘edge’ granted to IAS and IFS officers at three promotion stages, now extended to the Indian Police Service and the Indian Forest Service as well.
- Justice Mathur writes in his concluding note “that the main cause for resentment among services is that over a period of time IAS has arrogated to itself all power of governance and relegated all other services to secondary position. All posts covering majority of domains are today manned by IAS, be it a technical or administrative which is the main cause of grievance. It is time that government take a call that subject domain should be the criteria to man the posts and not a generalist. If fair and equitable treatment is not given to all Services, then the gap between IAS and other services will widen and it may lead to a chaotic situation and it will not be good for the governance and country.”
Ref : GConnect
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