Sunday, November 29, 2015

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.


Saturday, November 28, 2015

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 !



Thursday, November 26, 2015

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.

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.


Wednesday, November 25, 2015

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)
Report 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
Report 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
Report of the Seventh CPC  873 Index

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)

Report of the Seventh CPC 875 Index

{ Copied from 7CPC Report }

7CPC Implementation Cell

7CPC Implementation Cell formed by Government.

Dept of Expenditure, Finance Ministry issued Office Memorandum forming this Cell.

"An Implementation Cell for processing and implementing the accepted recommendations of the Seventh Central Pay Commission is set up in the Department of Expenditure, M/o Finance for a period of one year with effect from the 20th November, 2015, with the complement of staff structure as mentioned under: "

The Cell comprises of One Director, Two Under Secretaries, Two Private Secretaries, One Personal Assistant, and Two MTS

One Year Period given to the Cell with effect from 20 Nov 2015


That's good ofcourse ! Quick action by Government !!

But One year duration is certainly too long. Does this mean that the implementation of  7CPC recommendations will take another year ? !!

May not ! Let's hope so !!


OROP ( Parrikar model ) Vs OROP (7CPC model)

The 7CPC has recommended OROP (ie. Full parity ) not only for Defence pensioners, but for all  Civilian pensioners too.  That said, it is evident that FULL PARITY that has been in demand by the Central pensioners is  justified.
Let's all thank the 7CPC  for this bold step. Let's hope the Govt implement in its true sense and spirit immediately, and without any twists and dilution.

But... there's a  confusion . For the Defence pensioners  will  the Govt's OROP (Parrikar model of OROP)  or  the 7CPC model of  OROP  be accepted ?

James Bond 007 Vs Pay Commission 007

Well.... This article from today's Business Line , concerning 7CPC report, is presented in a hilarious tone (written by Manasi Phadke, a Blogger ).
It's all about the IAS supremacy ( and the fight for it ! ) . Parity of IPS and IFoS with IAS is the issue .
Let's not discuss much here. But read on the full story below...


Pay more, Get more

Pay more , get more !

That's what Business Line talks about in its editorial today.  This  is certainly a continuation to yesterday's article in TheHindu.

Yesterday, the article also talked about why the public are grudging over the pay-hikes to Central staff. The editorial in BL today says that "Taxpayers will not grudge pay hikes for Govt employees, if these are linked to performance and outcomes".

This is certainly true and just. For this, the 7CPC has incorporated many clauses in the present report to address this issue. Lets hope that the Govt implement all the actions suggested in the report. But this requires the full support of the employees. Let's hope this too will be acceptable to them.

please read the full story below....




Tuesday, November 24, 2015

Why we must not grudge them a pay hike - Prof. T T Ram Mohan, IIM Ahmedabad

These days,  infact everyday, we would see an article/report in the media grudging  on the Central staff and the pay hike proposed. Invariably, every report says that Govt wastes money for paying "useless people" or Govt pays huge amounts (" bonanza for babus"! ) to the undeserving employees and Pensioners.  Hearing all these negative criticisms, the public at large is against the Central staff and pensioners and believes the the Govt is simply draining the money, for something that's not needed !.

But alas....., Finally,  here is an "odd one out"  !  An article in today's TheHindu, by Prof. T T Ram Mohan (IIM, Ahmedabad), and titled "Why we must not grudge them a pay hike".

I am reproducing the article below, and I request you MUST read this. Prof.RamMohan analyses the facts, 7CPC anlyses and rcommendations. He tries to tell us how this relates to the Private sector. Please go on...and read...




Monday, November 23, 2015

3% increment Vs Increase in Level Index ?

In computing your Revised Pension (7CPC), please  note the following.

It is stated to add  3% of the notional pay for every increment in the scale ( not the number of years of service in the grade).
However,  the Cases used in the  7CPC report  for demonstrating the computation uses the corresponding Level Index .

Please refer Page 396 of the report.  Case I.  10.1.70

Therefore it is clear that you may get the notional pay directly from Pay Matrix (and without having to do the multiplication process).

Read the Notional Pay directly from the Pay Matrix.

First, Identify your PayBand and Grade Pay column in the Matrix.

The index number = Number of increments in the grade + 1.   eg. If you had 6 increments in the grade while retiring, the index is 7.

Therefore read your notional pay across the index number 7, in the column corresponding to your Grade pay.

Half of this figure is your new Pension (as on 1-1-2016).

7CPC Report

Top 5 key takeaways - Yahoo News

7th Pay Commission report: Top 5 key takeaways

Here's what you need to know about the 7th Pay Commission Report

This is from YAHOO News                                                     Download 7CPC Report
1. 7th Pay Commission report recommends gratuity, fully-funded 1-yr course
Seeking to infuse more young blood into the armed forces via the Short Service Commission, the 7th Pay Commission today recommended that they be paid gratuity and entitled to a fully-funded one-year course at a premier institute of higher learning.
The Commission has also recommended the maximum risk and hardship allowance to the Army personnel posted at Siachen, the world's highest battlefield.
In a bid to incentivise the Short Service Commission (SSC), the Pay Commission recommended that officers 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.
2. 7th Pay Commission report wants martyr status for CAPF troops killed on duty
The 7th Pay Commission has batted for granting "martyr" status to personnel of central paramilitary forces, on the lines of armed forces.
"The Commission is of the view that in case of death in the line of duty, the force personnel of Central Armed Police Forces should be accorded martyr status, at par with the defence forces personnel," the recommendations submitted by the Commission today said.
The report was submitted today to Finance Minister Arun Jaitley.
Associations of retired paramilitary forces and those serving have time and again said that they should be accorded such a status.
3. 7th Pay Commission report proposes new matrix for hardship allowance to troops
The 7th Pay Commission has recommended creating a new matrix for risk and hardship allowance for security and defence forces personnel even as it said that the top grade Military Service Pay (MSP) should be granted only to defence forces.
The Commission, which submitted its report today, said they have proposed to create a new "nice-cell risk and hardship matrix" with one extra cell at the top for army troops deployed along the Siachen glacier, the world's coldest and highest battle field.
"The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only," it said.
4. 7th Pay Commission report recommends 2-fold hike in Military Service Pay
The 7th Pay Commission today recommended more than doubling the 'Military Service Pay' to defence personnel, and suggested that Short Service Commissioned Officers should be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service.
The Commission, which submitted its report to Finance Minister Arun Jaitley, also recommended a significant increase in 'Risk and Hardship Allowance'.
"The Military Service Pay (MSP), 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 report said.
In case of 'Service Officers', the panel recommended to increase the MSP to Rs 15,500 from the present Rs 6,000, and in case of 'Nursing Officers' Rs 10,800 from Rs 4,200.
5. 7th Pay Commission report wants OROP for civilians too
The 7th Pay Commission report on Thursday recommended ‘One Rank One Pension’ (OROP) for all employees, including defence personnel and civilian government employees, retiring before January 1 next year.
“This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement,” read an official statement.
“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,” it said.
The statement further added: “In the case of defence forces personnel, this amount will include military service pay as admissible.”

7CPC Report Download 

Sunday, November 22, 2015

Compute you new Pension

Pension computation (Revised as per 7CPC report)
For retirees prior to 1-1-2016
There are two ways to calculate the Basic Pension as on 1-1-2016. The second method will account for your service in that grade (ie.with Full Parity).
1            Multiply current  Basic Pension (as per 6CPC)  with the increasing factor of 2.57.
2            This second method considers your service in the grade.
First fix your pay in the pay band and grade pay in the new “Pay Matrix” at the minimum of the corresponding Level.
This amount is incremented with adding number of your increments in the grade multiplied by 3%.
Alternately, Fix your notional pay in the Level, and look for the Index ( = number of increments in that grade +1 ) in the respective column in the Matrix.
Please note that  these amounts (no.of increments x 3%  Vs  indexed amount in matrix may differ slightly. However take the value corresponding to the Index.
Now, choose the higher of 1 and 2 above. That is your new Notional pay in the 7CPC system.
Take half of this notional pay , and that is your Basic Pension.

Case :  Pre-2006  retiree;  Grade :   Engineer SF ;   Scale : 37400—67000,  and Grade Pay : 8700
Number of years of service (increments) in SF grade = 8 years.
Present Basic pension  = 23050 (fixed as per 6CPC)
Corresponding  7CPC   Level  - 13 , Index – 9,   Increase factor – 2.57
As per present  (6CPC)  terms, Basic Pension as on 1-1-2016  = 23050 x 2.25 = 51862 ( Assuming DA of 125% on 1-1-2016)
As per proposed (7CPC) terms :  
Notional Pay at  entry in Level  13 =  118500   [ ie. (37400+8700) x 2.57  = 118477.  Rounded off to 118500 ]
Basic Pension at this entry level = 118500/2 = 59250
Therefore, gain in Pension = 59250 -  51862 = 7388.  Ie.   14.2 %  over the current pension .
Therefore, all  Pre-2006  retirees in Engr SF grade ( 7CPC  Level 13 ) gets Basic pension = 59250  wef.  1-1-2016.
{  This may also be arrived at as :   Present Basic Pension  of 23050 x  2.57 = 59238.5 }
[  Where is that 24% increase in pension as the Commission and Media  says ?   ]
Now the second scenario  considering  the service in the grade (ie. With full parity )
In the Pay Matrix, take Level 13 ; Entry pay = 118500.
No. of increments = 8 ; at the rate of 3 %;  = 8x3 = 24%
Notional pay = 118500 x 1.24 = 146940.  Therefore basic pension = 146940/2 = 73470.
Alternately , against Level 13, look for index of  9 (this corresponds to 8 increments). This = 150200
Therefore Basic pension considering Full parity = 150200/2 = 75100

Therefore, your Basic  pension , based on First method = 59250  (wef 1-1-2016 )
Basic pension  on full parity  = 75100  (wef 1-1-2016)

You may also refer the following table to fix your Notional pay in the Pay Matrix.
For any  Engineer SF, who retired before 1-1-2016 ( includes Pre-2006 and earlier retirees )

Increments in                    Index in  7CPC                    Notional pay                      Revised
SF grade                              Pay  Matrix                                                                         Basic Pension
0 (entry)                                  1                                              118500                                  59250           
1                                              2                                              122100                                  61050
2                                              3                                              125800                                  62900
3                                              4                                              129600                                  64800
4                                              5                                              133500                                  66750
5                                              6                                              137500                                  68750
6                                              7                                              141600                                  70800
7                                              8                                              145800                                  72900
8                                              9                                              150200                                  75100
9                                              10                                           154700                                  77350
10                                           11                                           159300                                  79650

Note :  Number of years of  service in the grade and number of increments in the scale may not be same. This happens in cases where advance increments are given while pay fixation in the Grade.


"How to find the Notional Pay"
In computing your Revised Pension (7CPC), please  note the following.

It is stated to add  3% of the notional pay for every increment in the scale ( not the number of years of service in the grade).
However,  the Cases used in the  7CPC report  for demonstrating the computation uses the corresponding Level Index .

Please refer Page 396 of the report.  Case I.  10.1.70

Therefore it is clear that you may get the notional pay directly from Pay Matrix (and without having to do the multiplication process).

Read the Notional Pay directly from the Pay Matrix.

First, Identify your PayBand and Grade Pay column in the Matrix.

The index number = Number of increments in the grade + 1.   eg. If you had 6 increments in the grade while retiring, the index is 7.

Therefore read your notional pay across the index number 7, in the column corresponding to your Grade pay.


Half of this figure is your new Pension (as on 1-1-2016).




Such Tables can be provided here , if  requested for.

7CPC Report  Download

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