New Year Greetings നവ വത്സരാശംസകൾ

ISROfef  wishes all  its  visitors, a

Very Happy and Prosperous New Year

ISROfef wish you a healthy wealthy and  peaceful year ahead

എല്ലാവര്ക്കും   നവ വത്സരാശംസകൾ 

54 to 50

I hope the readers would recollect that ISROfef  hinted at the large order difference in Pay (and so Pension) between the PB3 and PB4 bands in the 6CPC recommendations and implementation.

The point was mainly regarding the  difference between SE (in PB3) and SF (in PB4)  scales.  Such large difference doesnot exist  between other succeeding scales. Accordingly, suggestions were given to 7CPC to rectify this, by improving on SE scale. Infact, they considered it and attempted to smooth out the large difference, by using a  higher Multiplication factor.  ie. 2.67 against 2.57 ( Refer 7CPC- PayMatrix).

In 6CPC,  SF (PB4)  pay was  54 % more than  SE (PB3) pay.  Therefore,  Pensions too !

In 7CPC, this difference is brought down to  50 % !!

Merry Christmas

ISROfef 

wishes all associates and visitors 

a very Happy Christmas

Dil Maange More

“I wish I Could Make Everyone Happy – Everyone wanted a huge hike. ...... "

“It’s Dil Maange More for everyone in the government, We can’t give everything to everyone. If we conceded, the government of India will go bankrupt. Even then, if our recommendations are accepted as they are, the government will need Rs.1,02,100 crore. That’s a huge burden.”

These are the words of  Justice AK Mathur, 7CPC Chairman, during a recent interview.

Would you like to say something here ???

From Fishing Hamlet to Red Planet

This precious book is a must for every ISRO Engineer's collection.

You may have the free e-book. But a hard-copy is always very precious and will boost your prestige as an ISROite.  Your grand-children will thank you for your smart decision .


Harper Collins is now ready with the print and for distribution of this Book. It's available from Amazon  at a  25 % discount.

Please order your copy right now !  Click here to order. 

From Fishing Hamlet to Red Planet

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This title will be released around December 30, 2015. 
Pre-order now.

SpaceX's Falcon 9 - The challenge

Today's report on  SpaceX's Falcon 9  should inspire ISRO, on every count.
Its great ! It's marvellous !!

I hope ISRO must be watching these technological jumps.   Please read a report from "BusinessLine".

The oily thing - Crude and 7CPC

If you wonder what Crude oil is to do with 7CPC and OROP, don't get confused anymore. This "BusinessLine " report clearly tells you how the Government is looking at Crude oil prices before thinking on the proposed 7CPC implementation.

Let's all wish and pray , the crude trades below 50 $ for the next couple of years. It's 36.05 $ today !! That's too good indeed !  But, its oil.... always slippery !!

Cooling off period for retirees halved to one year

The cooling off period for bureaucrats seeking commercial employment after their retirement has been cut to ONE year, from the current TWO years.
Read on the full "BusinessLine " report today.

Law for Senior Citizens not being implementd

Kerala State, who have the highest percentage of elderly in our country,  have framed rules and notified the "Maintenance and Welfare of  Parents and Senior Citizens Act, 2007. But it's not being implemented effectively. For various reasons !

Kindly read  "TheHindu" report, and judge yourself how miserable is the life of Seniors, particularly the economically downtrodden.

Pensioners Day

Today is Pensioners' Day !

Today is 17 December !!

Congrats ISRO

ISROfef congratulates ISRO 

on the occasion of the successful launch of 

PSLV - C29

and accomplishing all the flight objectives

Delay tactics strengthen

Several States like West Bengal, Odisha , TamilNadu, AP, and UP, among others, have written to the Prime Minister, Cabinet Secretary and Finance Ministry to delay implementation of the 7CPC recommendations.

They sought more time to assess implications on their finances of implementing the 23.5 per cent (??)  hike in pay and pension for their employees in sync with the  7CPC recommendations for the central government staff.

7CPC Report is Detrimental to Central Government Employees

7CPC Report  is Detrimental to Central Government Employees – says Mr.Ajay Maken, Former Union Minister from Congress Party. He observes that 7CPC recommendations are not beneficial to low paid employees and tilted towards higher level officers.

Booster - 7CPC boosts the economy

What it does not boost ?  Nothing  !

It boosts everything ! This is about 7CPC !!

7CPC implementation will boost everything. From StockMarket to some people's envy !!

That's what CREDIT SUISSE says now. They have its reasons to prove.  I don't write any more. Its upto you to read this BusinessLine report.

7CPC - Increase in salary is 14.2 % and some loses !

7CPC – The whole of the media was & is busy in publishing as the increase in salary as 23.55%. However, the real calculation puts it to 14.29%.

The recommended pay hike for the Central staff by the 7CPC, though widely criticized by the employees have received a contrasting response by the media. Many of the media reports described it as a Bonanza for the Government employees without going into the facts or without any basic knowledge regarding the crucial calculations.

The whole of the media was & is busy in publishing as the increase in salary as 23.55%. However, the real calculation puts it to 14.29%. There is a vast difference in minimum pay between the 7CPC and its predecessor panel. However, none of the media reports reveal it.

The media is unaware of the shocking fact that once the 7CPC  comes into effect from January 1, 2016, many of the government servants will actually be taking home lower salary than what they are currently drawing under the 6CPC ! This would be primarily because of increase in deductions like CentralGovernment Employees Group Insurance Scheme and NPS.

As per the 7CPC  report, close to 88% of all the employees is Group C while only 3% is Group A and 9% from Group B. Now let us see how the 88% percent of the Central Government Employees have been deceived by the 7CPC.

Let us take an example of a Group C employee appointed in GP Rs.1800 on 1st August 2015, and let us assume he has been provided a government quarter.

What he would be drawing before the implementation of 7CPC ?

His basic Pay : Rs.5200 – 20200 + GP Rs.1800/- = Rs.7000/-
Add DA 125% = Rs.8750/-
HRA = NIL (Availed Government quarter)
TA = Rs.600 + DA = Rs.1350/-
Total Gross Income = Rs.17,100/-

Deductions :-

NPS 10% of basic Pay  =  Rs.700/-
CGEGIS   =  Rs.30/-
Total Deduction ; Rs.730/- (700 + 30)

Net Pay – Rs.17100 – RS.730  = Rs.16370/-

What he would be drawing after the implementation of 7CPC?

Minimum Basic Pay  = Rs.18,000/-
HRA = NIL (Availed Government quarter)
DA = NIL
TA = Rs.1350/-

Total Gross Income = Rs.19,350/-

Deductions :-

NPS = Rs.1800/-
CGEGIS = Rs.1500/-
Total Deduction ; Rs.3300/- (1800 + 1500)

Net Pay – Rs.19350 – Rs.3300 = Rs.16050/-

Now Calculate, he was earning Rs.16,370/- before the implementation of the 7CPC. However, after the implementation of the 7CPC in its present form, he will start earning Rs.16,050/-. What Bonanza he gets ?

He loses Rs.320/- ; do you call this a pay hike?

{ from GConnect.in  }

7CPC News

7CPC – Armed Forces Raise Concerns

Officers say that if the Pay Commission is implemented in the present form, it will position them much below their civilian counterparts in terms of salaries, facilities and status.

7CPC report on determination of minimum pay.

7CPC fixed the Minimum Pay at Rs.18000/- as per Indian Labor Conference recommendations considering 3 units of a family of 2 + 2. The amount was arrived by the prices sourced from Labor Bureau, Shimla. 7CPC claims that this amount is more than twice than that of a private sector employee.

7CPC - Fitment Formula Spoiled – Recommendations are Detrimental to Large Section

When we go through the recommendations of the 7CPC report, it appears that it is anti to low paid employees and failed to improve their financial conditions.

7CPC – Centre to Cushion Pay Panel Impact – Implementation Likely by Mid-2016

The financial burden of the 7CPC recommendations is large but the Govt has planned to cushion its impact by opting for its implementation in stages and not at one go.  The strategy involves pushing back the date of implementation of the pay commission award so that the government saves on payment of allowances.

From GConnect.in

Indefinite strike from 1st March 2016

If negotiated settlement on 7CPC related issues has not reached by 1st week of Feb 2016, Central Government Employees including Railway Employees and Defence Civilian Employees will go on indefinite strike from 1st March 2016

What the Economists say

These days, as you might ave read, comments/views of  Economists on 7CPC recommendations have come  through the media.  Here I have a couple of them (Ref : BusinessLine)

Thomas Bookmaaker, Director of Fitch ratings Asia Pacific , in an interview, expressed his views on Indian Economy, our Finances, and also on the implications of 7CPC implementation. He suggests how the Govt should plan the spending to meet the higher wage bills.  He says, "one of the options for the Govt to meet the hiked wages is to extend the FRBM ( Fiscal Responsibility and Budget Management )  target by a year."

Tushar Poddar, of Goldman Sachs, in an interview says that GST is key to pick-up in Indian economy. He also says : " If the Govt wants to implement the 7CPC rcommendations, then the path of fiscal consolidation that it has outlined in the FY16-17 budget is not going to be easy."

7CPC report may not be taxing

Here is a BusinessLine report, quoting Fin Ministry, on the financial aspects of implementing the 7CPC recommendations.
This confirms that the 7CPC implementation will not be a huge burden on the Govt finances, as the media have been trumpeting.
Please read on ......

7CPC – Pensioners to Gain the Most !

Financial Express wrote an article saying that :

7CPC – Pensioners to Gain the Most – While the 7th Pay Commission pay scale increase of serving employees is 16%, pensioners will see a 23.63% rise.

7th Pay Commission on pay and pension: Once the recommendations of the 7CPC are implemented, the biggest gainers will be pensioners. While the 7CPC pay increase of serving employees is 16%, pensioners will see a 23.63% rise. However, the big gain per se is in allowances, which rise by as much as 63%. Here is an elaboration of the 7th Pay Commission pension recommendations:

This report, does not qualify on any account. It lacks sense. I wish the reporter could have studied the true facts and figures well, before writing such invalid comments.

OROP - Mediator

Union minister and former Army Chief, General (Retd) V K Singh is mediating between the protesting ex-servicemen and the defence ministry to resolve the differences on OROP issue. Singh’s name as the mediator was agreed upon at a meeting between the veterans and Defence Minister Manohar Parrikar last Tuesday. 

FM not worried

Finance Minister Sri. Arun Jaitley today said he was not worried about fiscal deficit and Government would be able to meet its target despite additional outgo towards the implementation of the 7CPC.

He admitted however that the impact of implementing the pay commission’s recommendations, which will result in an additional annual burden of Rs 1.02 lakh crore on exchequer, would last for two to three years.

gConnect.in

JCM working on a memorandum on 7CPC

National Joint Council Action will meet on 8th December to discuss on a Memorandum submission to Govt, regarding  7CPC recommendations.

DA increase 7% wef 1-1-2016

Estimates based on WPI (October '15)  shows that the DA increase wef  1-1-2016  will be 7 %   (against an earlier estimate of 6 %).
Thus the total DA will be 126 % (against 125 %, estimated earlier )

OROP - ExServicemen to take Legal route

Govt's attitudes to OROP   and the 7CPC recommendations ! Both are making heart-burn for the Exservicemen. They are approaching the Court , through the Lawyer Ram Jethmalani.

7CPC and RBI

The fifth bi-monthly Monitory-Policy review by RBI yesterday did not change any key rates. But that's not the interesting point here.  RBI Governor stated the following, as related to 7CPC recommendations .


Pay Commissions proposals impact ; Outgo likely to be offset by budgetory tightening.

On the 7CPC, in the broad sense, there is going to be additional expenditure but it will be offset , presumably, by either additional revenue raising or cuts elsewhere so that the fiscal consolidation path is maintained. so, in that sense, we don't feel there will be a significant effect on aggregate demand provided , ofcourse, you maintain the fiscal path. .....   And I think the Govt has taken a number of these factors into account while anticipating the consequences of the Pay Commission proposals.



The message  :  7CPC implementation  is not a problem. Heavens are not going to fall if 7CPC recommendations are implemented.

7CPC Report -- Implementation

An Empowered Committee is being formed to seek views and suggestions for implementing 7CPC Report from all Central Govt Departments and JCM..

Why the Govt must hire more, and Pay more ?

TheHindu, today carries an article titled "Why Govt must hire more", authored by Sri. Nitin Pai (Director,  Takshasila Institution).

These days, we know that the Central employees and Pensioners are being cursed by the Media and public. They accuse that the Central staff and Pensioners eat away all in the National exchequer.  Thank God, there are a few economists, thinkers, and Policy specialists who say otherwise.

Last day, ISROfef quoted an article here saying that the increase in wages for the govt employees and pensioners are doing good for the economy. Though it seems a lot of money is spent, the economists proved that it does a good impact on the total economy. It drives demand, production, and further income for the Govt. And such pay increases must be well understood as the additional cost of running the Govt machinery. Thus the cycle of exchanging values takes place. That's the core behind the economic dynamism of a country. The wage revision for the large block of people who serve the rest of population thus further pushes the economic dynamism.

In today's article the author says " India should combine the pay and administrative reforms commission, reflecting a new mindset -- one that is ready to pay its public officials well, increase their numbers and invest in building competency."
He adds that " In a country , the economy and society are usually ahead of the Government, which causes a governance gap to emerge. In India , this gap is wide and growing. The only way to narrow it is by increasing the quality and quantity of public officials".

My fellowmen, .....  Are you all listening ?
My dear Mediamen, Are you noting this ?

Please..Please .. communicate this truth and wisdom to the public. please tell them that the 7CPC expenditure is essential and is GOOD for them !! Not only for Govt staff and pensioners, but also for the whole of the public.


Please read the full article (reproduced from TheHindu below) .

NPS is better

It's GOOD NEWs for the govt employees.

Yesterday,  BusinessLine  published a news /report "Govt employees make better returns in NPS".
The secret behind this better performance is EQUITY investments. If this is done efficiently, I believe the post-2004 employees would be at a better edge than others. Let's hope the best.
Please read the full report...

7CPC - Gratuity conundrum

The Gratuity applicable till 31-12-2015 is 10 lakhs (max).
7CPC has recommended this to 20 Lakhs wef 1-1-2016.

A person retiring on 31st Dec 2015 is eligible for 10 Lakhs. Another person retiring on the next day is eligible for 20 Lakhs !
What happens on the mid-night of 31 dec 2015 ?  Only Justice Mathur can tell you.

In fact   excellent proposals , to nullify such injustice have been suggested to 7CPC.  Probably they did not understand the suggestion OR they still want the injustice to prevail OR  they don't bother whatever and whoever gets it.

I hope, the Govt, while implementing the recommendations, rectify the injustice.

Senior Welfare Board

Kerala Govt is setting up a regulatory body to protect the rights of Senior Citizens. this is a great step towards providing support to Senior Citizens.

ISROfef wishes all the best in implementing this GREAT IDEA.

Central Staff protests against 7CPC recommendations.

Govt employees observed it a "Black Day", yesterday. Almost all Central Employees joined in this protest against the illogical recommendations.
AND, 
National Federation of Indian Railwaymen made representation to the Finance Minister about the resentment among Railway Employees on the recommendations of the 7CPC. NFIR refers low fixation of Minimum Salary, illogical Fitment formula, Abolition of various allowances and reduction in House rent allowances ceiling for class X, Y and Z cities.

I am sure none from DoS would have made any representations !

Bharat Pensioners Samaj reacts to 7CPC report

Bharat Pensioners’s Samaj,  the largest federation of the Indian Pensioners have pointed out many ills of the 7CPC report.  Here are a few of them

1. The New Pay Matrix has Lesser fitment factor for employees at  lower level while higher fitment factor was taken for employees higher level.

2. Ratio between minimum and maximum: Instead of reducing,  it is raised which is against the preamble of the Constitution of Indian Republic.

3. Minimum salary has been intentionally calculated to be lower to keep common fitment factor low.

4.  The fitment factor of  2.57 is applicable to all employees. But, in fact. 2.81 fitment has been given at Secy level. This is violative of CPC own recommendation and that of Article l4 of the constitution of India. 2.81 fitment benefit should be provided to all employee without any discrimination.

5. Raising percentage of pension based on sustenance: Analysis given by CPC is silent on sustenance , and this is unjustified rejection.

6. OROP recommended for all. But through the jugglery of pay matrix, for promotee officers and group‘C.‘ it will end up only in modified parity. This needs rectification to ensure absolute parity for all.

Gconnect / BPS

Who gains from 7CPC

The Crippled Pay Hike is Not Expected to Create a Market Boom

Some Corporates may gain, but others will lose, so the aggregate effect may be minimal. If consumer goods sector gains while capital goods sector loses, arguably, the net effect on the economy will be negative.

An interesting fact :

The Ministry of Science & Technology has 47% vacancies followed by Ministry of Finance at 46%. The other ministries that have more than 40% vacancies include Power, Civil Aviation, AYUSH, Minority Affairs & Corporate Affairs.

7CPC Report - Executive Summary

The 7CPC Report contains an Executive Summary of the Report.  This is reproduced here for your quick reading . This contains all in an abridged form.

----------------------------------------------------------------------------------------

7CPC Report         Chapter 17             Executive Summary

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. (paras 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 ₹18,000. This corresponds to the present starting pay of ₹7,000, which is the beginning of PB-1 viz., ₹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.’

Report of the Seventh CPC 866 Index

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)

17.8 Defence pay matrix: A pay matrix similar to that for civilian employees has been drawn up for defence personnel. The commencement of the Defence Pay Matrix for combatants corresponds to the existing GP 2000, which is the induction level for Sepoys and equivalent. The Pay Matrix designed for the defence forces personnel is more compact than the civil pay matrix keeping in view the number of levels, age and retirement profile of the service personnel. (para 5.2.13 and para 5.2.14)

17.9 Military Nursing Officers (MNS): Similarly, in the case of the pay matrix for (MNS), the existing uniqueness in the pay structure of MNS officers has been captured in the pay matrix designed for the MNS. (para 5.2.12)

17.10 Military Service Pay (MSP): The Defence forces personnel will continue to be entitled to payment of Military Service Pay for all ranks up to and inclusive of Brigadiers and their equivalents. The MSP per month recommended is as follows:

i. Service Officers       Rs.15,500

ii. Nursing Officers     Rs.10,800

iii. JCO/ORs                Rs. 5,200

iv. Non Combatants (Enrolled) in the Air Force        Rs. 3,600

17.11 MSP will continue to be reckoned as Basic Pay for purposes of Dearness Allowance, as also in the computation of pension. Military Service Pay will however not be counted for purposes of House Rent Allowance, Composite Transfer Grant and Annual Increment. (para 5.2.22)

17.12 The Military Service Pay, which is a compensation for the various aspects e.g., intangibles linked to special conditions of service, conducting full spectrum operation including force projection outside India’s boundaries, superannuation at a younger age and for the edge historically enjoyed by the Defence Forces over the civilian scales, will be admissible to the Defence forces personnel only. (para 6.1.31)

17.13. MACP: MACP for defence forces personnel will continue to be administered at 8,16 and 24 years of service. (para 6.2.85)

17.14 Rationalisation of Trades: All X trades should mandatorily obtain a qualification which is equivalent of a diploma in engineering (recognised by AICTE). The incentive structure will henceforth be linked with the qualifications as follows:

i. X pay for JCOs/ORs in Group X at ₹3,600 per month for those currently in X pay, but not having a technical qualification recognised by AICTE).

Report of the Seventh CPC  867 Index

ii. X pay for JCOs/ORs in Group X at ₹6,200 per month for all X trades which involve obtaining a qualification which is equivalent of a diploma recognised by AICTE.

(para 6.2.79 and para 6.2.88)

17.15 Defence Security Corps (DSC): The benefit of MACP be permitted to DSC personnel also. However this benefit should be limited to a total of three upgrades in the entire service career, taking the combined length of the regular employment and the course of reemployment as defence service corps personnel. The first benefit of MACP may be extended to them after a period of eight years from their date of re-employment, in case they do not get a promotion during this period. (para 6.2.98)

17.16 Grant of Annual Increment to Recruits: The benefit of grant of first annual increment to recruits will be reckoned from date of enrolment. (para 6.2.94)

17.17 Short Service Commissioned Officers: Short Service Commissioned Officers will be allowed to exit Armed Forces any 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.(para 6.2.63)

17.18 Headquarters Staff: Parity in pay, up to the rank of Assistants, between the field staff and headquarter staff is recommended. It is recommended that the level of Assistants of CSS be brought at par with Assistants in the field offices who are presently drawing GP 4200. Accordingly, in the new pay matrix the Assistants of both Headquarters as well as field units will come to lie in Level 6 in the pay matrixand pay fixed accordingly. This level corresponds to pre-revised GP 4200. The corresponding posts in the Stenographers cadre will also follow similar pay parity between field and headquarter staff. The pay of those Assistants/Stenographers who have, in the past, been given higher Grade pay would be protected.(chapter 7.1)

17.19 Recently, through a government order ‘edge in pay’ has been extended to the Upper Division Clerks belonging to CSS in the Secretariat by way of grant of non-functional selection grade to GP 4200.This is available to 30 percent of UDCs. Since the Commission is recommending placement of all Assistants, field and Headquarters, in Level 6 of the pay matrix, which corresponds to pre-revised GP 4200, this non-functional selection grade to GP 4200 for Upper Division Clerks belonging to CSS is recommended to be withdrawn.(para 7.1.4 (j))

17.20 Two Additional Increments in CSS/CSSS are granted at the time of their promotion from the grade of Under Secretary/PPS to the grade of Deputy Secretary/Senior PPS. The Commission finds no merit in continuation of two increments for CSS/CSSS as no such   Report of the Seventh CPC868 Index

dispensation exists in any other service except the IAS and hence recommends abolition of the

same. (para 7.1.6 (d))

17.21 Cadre Review: To hasten the process of cadre reviews and reduce the time taken in inter-ministerial consultations, it isrecommended 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 Firefighting 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 subsumed 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 Report of the Seventh CPC

869 Index

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)

17.31 Entire CPMA will be payable to the PBORs of Defence Forces. Except Rum Allowance, other components of CPMA will be payable to PBORs of CAPFs, Indian Coast Guard, RPF and Police forces of Union Territories. Rum Allowance will be granted to PBORs of CAPFs and Indian Coast Guard as per the existing guidelines. (para 8.17.25)

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)

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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) PC Advance

₹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)

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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

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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 ₹10 lakh to ₹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 ₹9 lakh for 100 percent disability to ₹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 (₹)

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 wartorn zone in foreign country                                                            45 lakh

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17.48 Indian Coast Guard: The Commission is recommending for the Indian Coast Guard:

a. Merger of pay group Z into pay group Y. (para 11.12.15)

b. X pay of ₹6,200 p.m. to all direct entry diploma holders. (para 11.12.18)

c. Sarang Laskars to be upgraded to pay level 4 in the civilian pay matrix. (para 11.12.21)

d. Upgradation of Director General to Apex Level. (para 11.12.27)

Other highlights are as under:

17.49 The Edge: The edge, presently accorded to the Indian Administrative Service in the form of two additional increments @ 3 percent over their basic pay at three promotion stages

i.e., promotion to the Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and

the NFSG to continue in the proposed pay matrix.

17.50 Having regard to the difficult demands placed on police officers by their jobs including long working hours, the risk of personal injury and death and the immense public responsibility they carry, the view of the Chairman hasrecommended that this financial edge, as given to the IAS, be extended to the IPS as also to the third All India Service, the IFoS. (para 7.2.38)

17.51 In so far as the Indian Foreign Service is concerned, the existing dispensation shall continue. (para 7.2.18 and para 7.2.19)

17.52 Shri.Vivek Rae, Member, Seventh CPC is of the view that the financial edge for IAS and IFS is fully justified but has not agreed with the view that it should be extended to the IPS and the IFoS. (para 7.2.20)

17.53 Dr. Rathin Roy, Member, Seventh CPC is of the view that the financial edge accorded to the IAS and IFS should be removed. IAS officers have a multi-dimensional leadership role to play and in specific jobs such as that of DM/DC, officers occupying such positions must be able to be primus inter pares by administrative affirmation. According to him, if this position is to be reflected through superior financial remuneration, then their recruitment must be conducted separately. (para 7.2.21)

17.54 Chairman and Dr.Rathin Roy, Member are of the view that all AIS and Central Services Group A officers who have completed 17 years of service should be eligible for empanelment under the Central Staffing Scheme and the “two year edge”, presently enjoyed by the IAS should be withdrawn. Shri Vivek Rae, Member, has not agreed with this view and has recommended review of the Central Staff Scheme guidelines. (para 7.2.23 and para 7.2.24)

17.55 Non Functional Upgradation for Organised Group ‘A’ Services: The Chairman is of the considered opinion that since NFU has been in existence for the last ten years and is being availed by all the organised Group `A’ Services it should be allowed to continue. The same will be available not only to all organised Central Group ‘A’ Services but also members of CAPFs, ICG and Defence forces. NFU will henceforth be based on the respective residency periods in the preceding substantive grade. All the prescribed eligibility criteria and promotional norms including ‘benchmark’ for upgradation to a particular level would have to be met at the time of grant of NFU. (para 6.2.35, para 7.3.21 and para 7.3.22)

17.56 Shri Vivek Rae, Member and Shri Rathin Roy, Member, have favoured abolition of

NFU at SAG and HAG level. (para 7.2.24)

17.57 Chairman and Dr. Rathin Roy, Member, hold the view that the age of superannuation for all CAPF personnel should be 60 years uniformly. Shri Vivek Rae, Member, has not agreed with this recommendation and has endorsed the stand of the Ministry of Home Affairs. (para11.22.33 and para 11.22.34)

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