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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.’
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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).
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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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of the Seventh CPC 870 Index
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)
Report
of the Seventh CPC 871 Index
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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of the Seventh CPC 872 Index
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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of the Seventh CPC 875 Index
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