Report of the Seventh Central Pay Commission is available on the website of 7th CPC
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Seventh Central Pay Commission
The Government of India, vide notification No.1/1/2013-E.III(A) of 28.02.2014, appointed the Seventh Central Pay Commission with specified Terms of Reference. The Commission, after due deliberations, submits its report to the Government of India on this 19 t h day of November, 2015.
/Sd./ / Sd./ /Sd./
Ashok K umar Mathur Vivek Rae -Rathin Roy
(Chairman) (Member) (Member)
Organisation
Commission
1. Justice Shri Ashok Kumar Mathur, Chairman 2. Shri Vivek Rae, Member
3. Dr. Rathin Roy, Member
4. Smt. Meena Agarwal, Secretary
Secretariat
1. Shri Jayant Sinha, JS
2. Shri Samir Kumar Sinha, JS
3. Shri Rajiv Mishra, Adviser
4. Smt. Yashashri Shukla, Director
5. Shri Mudit Mittal, Director
6. Shri D.K. Rai, Director
7. Shri Sudhir Sharma, US
8. Shri B.R. Desi Reddy, US
9. Shri Sukadev Sarangi, Sr.PPS
10. Shri Khub Ram, PPS
11. Shri Ajay Kumar Jain, DDO
12. Smt. Promila Rajvanshi, PS
13. Shri I.G. Baines, SO
14. Shri K.R. Devarajan, SO
15. Shri A.K. Das, SO
16. Smt. Uma Vijayan, SO
17. Shri Radhe Shyam Singh, SO
18. Shri Bijendra Prasad, Assistant
Consultants
1. Shri Dev Raj
2. Shri M.K. Malhotra
3. Smt. Sneh P. Madan
4. Shri P.R. Das
5. Shri Mahendra Singh
6. Shri T.K. Chakravarty
7. Shri K.K. Funda
8. Shri H.K. Bhatt
9. Shri Rattan Singh
10. Shri K. Srinivasan
11. Shri J.K. Ahuja
12. Shri C.L. Zaroo
13. Shri A.C. Vadhera
14. Shri Balbir Singh
15. Shri P.R. Rana
16. Smt. Sunita Guglani
Others
1. Shri B.B.Jena, MTS
2. Shri P.K.Jha, MTS
3. Shri Vinod Singh Khera, SCD
4. Shri Ram Bharosa, SCD
5. Shri Raj Kumar, SCD
6. Bhajan Singh, SCD
7. Inder Lal Singh, SCD
Acknowledgement
I record my appreciation for the useful cooperation provided by Member
Shri Vivek Rae and Shri Ratin Roy. Shri Vivek Rae has long
administrative experience to his credit. His useful guidance and advice
was an asset to Commission and helped in solving intricate problems of
Pay determination. He, with his robust knowledge and gentle behaviour,
has earned the heart of all of us who were associated with this
Commission. I shall be failing in my duty if I do not record his useful
contribution in accomplishing the task of Commission in record time.
I am equally grateful to Dr. Rathin Roy, a great young economist of the
country who with his great scholarly knowledge provided an economic
input to the completion of this task. He is a very amiable and cheerful
person. He was always available for the economic and financial advice in
accomplishing this task.
The main moving force behind this Commission was Smt. Meena Agarwal who
with her long administrative experience has rendered a great service to
this Commission in completion of task. If shehad not been there, perhaps
the Commission would not have successfully completed task in the record
time. It is her statesmanship that she could procure the accommodation
and staff in time. She had knack to pick the right kind of colleagues.
Smt. Meena Agarwal was the heart and soul of this Commission and because
of her hard labour, devotion and commitment, this Commission could
accomplish its task. I record my great appreciation of her service
rendered to this Commission. I wish her great prosperity and good health
post retirement.
Shri Jayant Sinha, a man of great rectitude and devoted person who had
keen eye like an able auditor to see things through in its proper
perspective. The contribution provided by him in accomplishing the task
of the Commission is immense and I record my great appreciation for his
unfailing contribution to this Commission.
Shri Samir Kumar Sinha is a young and energetic upcoming member of
Indian Administrative Service. He holds a bright future before him. He
has made the immense contribution in successfully accomplishing task
before this Commission. He holds a long and rich experience of
administrative matters. I have no doubt that he will make outstanding
career in times to come. I wish him great success in his life.
Shri Rajiv Mishra, another young economist who has very ably assisted
this Commission with his thorough knowledge of economics and left a
great imprint. He has made a tremendous contribution and I wish him a
great success in his career.
Smt. Yashashri Shukla, a young officer from the Indian P&T Accounts
and Finance Service has made extraordinary contribution in accomplishing
the task given to her, especially in determination of the pay
structure. She has all round experience and has not spared any efforts
in completing the work of this Commission successfully. She is a devoted
and conscientious
worker and has
displayed great stamina. She holds a bright future and I am sure by her
positive attitude towards the life, she will make a mark in her career. I
wish her great success in her life.
Shri Mudit Mittal, aman from the Indian RailwayAccounts Servicehad a
great hold on various aspects of the administration. Though essentially
he is a man from Finance, but his grip over all other matters is
excellent. He has worked tenaciously and made tremendous contribution in
accomplishing the task. He also holds a great future before him. He has
a long way to go in his life and I wish him great success.
Shri D.K. Rai, a young officer from Accounts and Finance stream who had a
deep insight into the financial matters especially, the defence. His
knowledge about defence finance has been of great help to this
Commission in determining the pay structure for the defence forces. He
is a young man and hold a long career before him and his insight into
the financial intricacies of the pay structure of the defence service
will take him to great height. I wish him great success, a bright future
awaits him.
Shri Sudhir Sharma, Under Secretary, on deputation from the C&AG
department has contributed greatly to the considerable logistics efforts
involved in making the various interactions of the Commission, both in
Delhi and outstations, extremely efficient and hassle-free.
The contribution made by Smt. Promila Rajvanshi, PS is worthy of special
mention. She has undertaken the exacting task of preparation of the
Report document.
Shri Arun Khera, PPS in Armed Forces Tribunal, rendered invaluable
assistance especially at the initial stages of setting up the
Commission. His contribution is greatly appreciated.
I also record my appreciation for the useful assistance given to me by
my personal staff i.e. Shri Sukhdev Sarangi, Sr. PPS, Shri C.L. Zaroo,
PS and Shri Khub Ram, PPS who have very ably assisted me in performing
my duties. I am deeply impressed by their devotion and the
confidentiality with which they have assisted me in discharging my
duties. I also record my appreciation of both the drivers Shri Vinod
Khera and Shri Raj Kumar who have served me with the great dedication. I
shall be failing in my duty if I do not acknowledge the household staff
working with me for their devotion and faithfulness in discharging
their duties. I also record my appreciation of support provided by my
security staff.
I also record my appreciation for all other staff of the Commission who
have contributed one way or the other in accomplishing the task of the
Commission successfully. I record my gratitude for all of them who had
assisted this Commission faithfully and devoted their time usefully in
completing the task of this Commission.
(A.K.Mathur) Chairman, 7th CPC
List of Abbreviations
| Abbreviation used | Stands for |
| B.E. | Bachelor of Engineering |
| B.Tech. | Bachelor of Technology |
| CAPF | Central Armed Police Force |
| CGHS | Central Government Health Scheme |
| CPC | Central Pay Commission |
| CSS | Central Secretariat Service |
| CSSS | Central Secretariat Stenographers’ Service |
| DA | Dearness Allowance |
| DoPT | Department of Personnel and Training |
| GDP | Gross Domestic Product |
| GP 5400 (PB-3) | Grade Pay of ₹5400 in Pay Band 3 |
| HAG | Higher Administrative Grade |
| IIMA | Indian Institute of Management, Ahmedabad |
| IIMC | Indian Institute of Management, Kolkata |
| JCM-Staff Side | Joint Consultative Machinery (National Council) – Staff Side |
| JCOs/ORs | Junior Commissioned Officers/Other Ranks |
| LDCE | Limited Departmental Competitive Examination |
| M.Tech. | Masters of Technology |
| MACP | Modified Assured Career Progression |
| MHA | Ministry of Home Affairs |
| MNS | Military Nursing Service |
| MSP | Military Service Pay |
| MTS | Multi-Tasking Staff |
| NFU | Non-functional Upgrade |
| NPS | National Pension System |
| pa | per annum |
| PBORs | Persons Below Officer’s Rank |
| pm | per month |
| PRIS | Performance Related Incentive Scheme |
| SAG | Senior Administrative Grade |
| UPSC | Union Public Service Commission |
| w.e.f. | with effect from |
INDEX
1. Foreword................................................................................................................1
2. The Macroeconomic Situation................................................................................9
2.1 General Economic Situation and Financial Resources of the Central Government........9
2.2 Financial Resources of the State Governments .............................................................15
3. Analysis of Central Government Personnel..........................................................19
4. Approach to Pay...................................................................................................55
4.1 Principles of Pay Determination....................................................................................55
4.2 Determination of Minimum Pay....................................................................................60
5. Revised Pay Structure..........................................................................................67
5.1 Pay Structure (Civilian Employees)...............................................................................67
5.2 Pay Structure (Defence Forces Personnel) ....................................................................86
6. Pay Related Issues of Defence Forces Personnel...............................................95
6.1 Background and Approach to Pay Related Issues of Defence Personnel......................95
6.2 Cadres of Defence Forces Personnel ...........................................................................105
7. Pay Scales for Specific Services, Categories & Cadres.....................................139
7.1 Headquarters Organisations in Government of India and Office Staff
in Field Offices
............................................................................................................................................139
7.2 All India
Services.........................................................................................................148
7.3 Central Services Group A............................................................................................167
7.4 Engineering Services ...................................................................................................195
7.5 Scientific
Services........................................................................................................199
7.6 Medical and Paramedical Services ..............................................................................206
7.7 Common Categories.....................................................................................................224
8.
Allowances..................................................................................................................243
8.1 List of Allowances (Summary)....................................................................................243
8.2 Overview of Allowances..............................................................................................252
8.3 Allowances Payable for Additional/ Extra Duty .........................................................256
8.4 Allowances related to Knowledge Updates.................................................................262
8.5 Allowances related to Deputation................................................................................264
8.6 Allowances related to Working on Holidays...............................................................265
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8.7 Allowances related to Housing....................................................................................267
8.8 Allowances related to Good Service............................................................................273
8.9 Qualification Allowances.............................................................................................276
8.10 Allowances related to Risk and Hardship..................................................................285
8.11 Allowances for Running Staff of Indian Railways....................................................306
8.12 Allowances related to Sports .....................................................................................312
8.13 Sumptuary Allowances..............................................................................................313
8.14 Allowances related to Training..................................................................................315
8.15 Allowances related to Travel.....................................................................................317
8.16 Allowances related to Uniform..................................................................................330
8.17 Other Allowances.......................................................................................................334
9. Other Facilities...................................................................................................359
9.1
Advances......................................................................................................................359
9.2 Holidays and Leave......................................................................................................363
9.3
CGEGIS.......................................................................................................................370
9.4
GPF..............................................................................................................................372
9.5 Medical Facilities for Serving Employees and Pensioners..........................................373
9.6 Persons with Disabilities..............................................................................................378
10. Pension and Related Benefits..........................................................................381
10.1 Pension and Related Benefits of Civilian Employees................................................381
10.2 Pension and Related Benefits of Defence Forces Personnel .....................................397
10.3 National Pension System (NPS)................................................................................421
11. Issues Specific to Ministries and Departments.................................................429
11.1 Ministry of Agriculture..............................................................................................429
11.2 Department of Atomic Energy...................................................................................441
11.3 Ministry of AYUSH...................................................................................................447
11.4 Ministry of Chemicals and Fertilizers........................................................................450
11.5 Ministry of Civil Aviation .........................................................................................453
11.6 Ministry of
Coal.........................................................................................................456
11.7 Ministry of Commerce and Industry ..........................................................................459
11.8 Ministry of Communications and Information Technology......................................466
11.9 Ministry of Consumer Affairs, Food and Public Distribution.................................485
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11.10 Ministry of Corporate Affairs..................................................................................489
11.11 Ministry of Culture ..................................................................................................493
11.12 Ministry of Defence.................................................................................................500
11.13 Ministry of Development of North Eastern Regions...............................................527
11.14 Ministry of Drinking Water and Sanitation.............................................................530
11.15 Ministry of Earth Sciences.......................................................................................533
11.16 Ministry of Environment, Forests and Climate Change ..........................................539
11.17 Ministry of External Affairs.....................................................................................547
11.18 Ministry of Finance..................................................................................................552
11.19 Ministry of Food Processing Industries...................................................................577
11.20 Ministry of Health and Family Welfare...................................................................580
11.21 Ministry of Heavy Industries & Public Enterprises.................................................588
11.22 Ministry of Home Affairs ........................................................................................591
11.23 Union Territories......................................................................................................621
11.24 Ministry of Human Resource Development............................................................661
11.25 Ministry of Information and Broadcasting ..............................................................666
11.26 Ministry of Labour and Employment ......................................................................674
11.27 Ministry of Law and Justice.....................................................................................680
11.28 Ministry of Micro, Small & Medium Enterprises....................................................686
11.29 Ministry of Mines ....................................................................................................690
11.30 Ministry of Minority Affairs....................................................................................697
11.31 Ministry of New & Renewable Energy ...................................................................700
11.32 Ministry of Overseas Indian Affairs........................................................................703
11.33 Ministry of Panchayati Raj ......................................................................................705
11.34 Ministry of Parliamentary Affairs............................................................................708
11.35 Ministry of Personnel, Public Grievances and Pensions .........................................711
11.36 Central Vigilance Commission................................................................................718
11.37 Ministry of Petroleum and Natural Gas...................................................................720
11.38 Ministry of Planning................................................................................................723
11.39 Ministry of Power....................................................................................................726
11.40 Ministry of Railways................................................................................................729
11.41 Ministry of Road, Transport and Highways ............................................................755
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11.42 Ministry of Rural Development...............................................................................758
11.43 Ministry of Science and Technology.......................................................................761
11.44 Ministry of Shipping................................................................................................768
11.45 Ministry of Social Justice and Empowerment.........................................................772
11.46 Department of Space................................................................................................776
11.47 Ministry of Statistics and Programme Implementation...........................................781
11.48 Ministry of Steel
......................................................................................................786
11.49 Ministry of Textiles..................................................................................................789
11.50 Ministry of Tourism.................................................................................................793
11.51 Ministry of Tribal Affairs ........................................................................................796
11.52 Ministry of Urban Development and Ministry of Housing and Urban
Poverty
Alleviation..........................................................................................................................798
11.53 Ministry of Water Resources, River Development and Ganga Rejuvenation.........809
11.54 Ministry of Women and Child Development...........................................................819
11.55 Ministry of Youth Affairs and Sports......................................................................821
11.56 President's Secretariat..............................................................................................824
11.57 Vice President's Secretariat......................................................................................825
11.58 Cabinet Secretariat...................................................................................................826
11.59 Prime Minister's Office............................................................................................827
11.60 Union Public Service Commission ..........................................................................828
11.61 Election Commission of India .................................................................................830
11.62 Indian Audit and Accounts Department ..................................................................832
12. Officers and Employees of the Supreme Court of India ...................................839
13. Regulatory Bodies ............................................................................................845
14. Training............................................................................................................849
15. Bonus Schemes and Performance Related Pay ..............................................855
16. Financial Implications.......................................................................................863
17. Executive Summary .........................................................................................865
18. Meetings held by the Commission....................................................................875
Foreword
1.1 India is a vast country measuring 3,214 km from north to south,
2,933 km from east to west, with an area running to 3.3 million square
km. It has a land frontier of 15,200 km and a coastline of 7,517 km. It
shares borders with the neighboring countries of China, Pakistan,
Bangladesh, Bhutan, Nepal, Myanmar, Afghanistan and Maldives. We also
share maritime borders with Malaysia, Sri Lanka and Thailand. The
longest borders are with China and Pakistan, measuring 3488 km and 3,323
km respectively. Apart from its physical size India has a large
population of about 1.2 billion. To govern such a vast country, India
needs a strong civil and non-civil work force.
1.2 Our country also has immense diversity in its culture, caste,
religion, customs, languages that give it uniqueness. Keeping in view
these features, our forefathers conceived a Constitution which captures
all its unique features. The Indian Constitution is unitary as well as
federal in character. The Preamble of the Indian Constitution reads as
under:
WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India
into a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC and to secure to
all its citizens:
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUALITY of status and of opportunity;
and to promote among them all
FRATERNITY assuring the dignity of the individual and the unity and integrity of the Nation;
IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November, 1949, do
HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION.
1.3 The basic feature of Indian Constitution is that it has three
pillars–Legislature, Executive and Judiciary. Laws are framed by the
Legislature. They are executed by the Executive machinery of the
government. The Judiciary works as a watchdog so that both, the
Legislature and Executive, shall not overstep the framework of the
Constitution. Laws made by the Legislature are implemented by the
Executive. Therefore, the Constitution conceived Civil Services like the
All India Services and Central Services. Since the Indian Constitution
is federal as well as unitary in character, each state has its own
legislature i.e., State Assemblies. The Central Government legislates
through Parliament i.e.,Lok Sabha and Rajya Sabha. Under Indian
Constitution power to legislate has been demarcated in the VII Schedule
of Constitution. There are three lists, List-I enumerates subjects on
which the Central Government will legislate, List-II enumerates subjects
on which states shall legislate, List-III, on which both, the Centre
and the States shall have concurrent power to legislate.
1.4 This is reflected in Article 309 of the Constitution which empowers
the Parliament and the State to legislate frame an Act to lay down the
service conditions of the respective services. There is a proviso to
Article 309 of the Constitution of India as per that, till the
Parliament or
1
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Report of the Seventh CPC
the State Legislature frames an Act, Rules can be framed by the Central
Government or State Government to regulate the service conditions of
employees. The amended Article 312 also contemplates creation of All
India Services common to the Union as well as the States. This is brief
legal background that how service condition of the government servants
are regulated under the Indian Constitution.
1.5 Since the laws are laid down by the Parliament and the Executive has
to implement those laws, the Executive consists of political elected
representatives as well as the bureaucracy. So far as political elected
representatives are concerned, they are elected by the people, but the
bureaucracy is recruited under the Rules framed under the Constitution.
The elected political elected representatives and duly recruited
bureaucracy together govern the country.
1.6 What should be the norms for governance? This has been a moot point
through ages and the norms of the governance have changed from time to
time. If we go to the past history of ancient India, we have many
scriptures which have dealt with issues of governance and those norms
are also relevant in the present time. Bhagwat Gita tackles many
management issues at the grassroot level and offers feasible solutions
on the principles of value-based ethics, enlightened leadership and
human quality development. It says:
||यद् यद् आचरति श्रेष्ठम्|
|तत् तद् ऐवेतरो जन:|
|स यत् प्रमाणम् कुरूते|
|लोकस् तद् अनुवर्तते||
(Ch. III Karmayoga Shloka 21)
It means whatever action a great man performs, common men follow and
whatever standards he sets by exemplary acts, all the world pursues. It
is further stated in the Gita “यथो धर्म: तथो जय:” meaning “where there is Dharma there is victory” or, in other words, success goes hand in hand with righteousness.
1.7 Chanakya also, in his celebrated discourse “Arthashashtra,”
emphasized that the Dharma Sukti is applicable to both, a ruler and the
common man. It is necessary to follow Dharma in all walks of human life.
1.8 Therefore, if we have a dedicated bureaucracy, then they will provide a good leadership and good governance.
1.9 It is unfortunate that we have lost sight of relevant principles
enshrined in our scriptures, and this has led to a steep decline of our
administrative machinery. It needs to be resuscitated by infusing the
norms of righteousness.
1.10 During the Mughal period, there was an evolution of administrative
system that was further improved by the British rulers for our country,
they framed elaborate norms to govern the countryand created an
administrative framework, which was adopted and formalised under the
Indian Constitution.
1.11 To get a competent workforce, the government has laid down
recruitment rules for recruiting persons who are efficient and
competent. To improve efficiency, the government has
from time to time constituted Administrative Reforms Commissions to
suggest ways and means to improve efficiency in administration. The
Government of India has also, from time to time, set up various Pay
Commissions for improving the pay structure of its employees so that
they can attract better talent to public service. In this 21st century,
the global economy has undergone a vast change and it has seriously
impacted the living conditions of the salaried class. The economic value
of the salaries paid to them earlier has diminished. The economy has
become more and more consumer economy. Therefore, to keep the salary
structure of the employees viable, it has become necessary to improve
the pay structure of their employees so that better, more competent and
talented people could be attracted for governance.
1.12 In this background, the Seventh Central Pay Commission was
constituted and the government framed certain Terms of Reference for
this Commission. The salient features of the terms are to examine and
review the existing pay structure and to recommend changes in the pay,
allowances and other facilities as are desirable and feasible for civil
employees as well as for the Defence Forces, having due regard to the
historical and traditional parities. The framework should be linked with
the need to attract the most suitable talented candidate to the
government service and promote efficiency, accountability and
responsibility in the work culture. In addition, it is to review the
norms of bonus, keeping in view performance and productivity, as also
examine the existing pension scheme and other retirement benefits. The
terms of reference enjoin that the recommendations should be made
keeping in view the economic conditions and available resources of the
country and also the likely impact on the State Governments. The Terms
of Reference also mandated the Commission to make the recommendations
keeping the best global practices and their adaptability and relevance
in Indian conditions. A closer look at the terms of reference reveals,
thus, that there are many newer elements which have broadened the remit
of this Commission.
1.13 The approach adopted by the Commission was to reach out to all
stakeholders and seek their inputs in various forms. To start with, a
website was set up giving all updated information about the working of
the Commission. An exhaustive questionnaire was prepared, capturing,
inter alia, all the important facets of the terms of reference, for
seeking suggestions from the stakeholders. We wrote to
ministries/departments seeking various data on pay and allowances, staff
position, age profile, recruitment rules of cadres etc.
1.14 The Commission received a large number of representations from
various recognised and unrecognised bodies. The Commission also
permitted oral submissions through the representatives of these
organisations. Visits to remote areas like the border areas in the
North, Leh, Arunachal Pradesh, Rann of Kutch and Rajasthan, and to
distant parts of the country such as the north-eastern region and
Andaman and Nicobar Islands were undertaken. The main objective of the
visits was to have a first-hand experience of the working conditions and
difficulties attached to various jobs. The Commission visited metros
with significant presence of Central Government employees such as
Bengaluru, Vishakhapatnam, Mumbai and Kolkata. After taking oral as well
as documentary evidence, the Commission discussed all the issues which
were raised by these representatives, keeping in view the terms of
reference. As per our ToR, we have to capture the global best practices.
Pursuant to this, we interacted with the Governments of Australia and
New Zealand.
1.15 To gain insight into the principles of emoluments, workshops were
organised in association with IIM, Bangalore, Administrative Staff
College of India, Hyderabad and SVP National Police Academy, Hyderabad.
The local country office of the World Bank was requested to provide
inputs on best global practices in remuneration. The World Bank team
made several presentations on relevant subjects, viz., international
trends in public sector pay, allowances, pension etc.
1.16 The key expectation of employees at all levels is that there should
be a significant increase in their pay and improvement in other
facilities. Representatives of some of the recognised organisations have
staked their claims for grant of a pay structure comparable to that of
the private sector. At the core of this demand is the economic
development the country has witnessed in recent times, resulting in the
avenues for talented young persons having opened up; several of them are
being hired by the private sector for emoluments much higher than in
the government sector.
1.17 The Commission bestowed its best of consideration and has dealt
with all the issues in appropriate chapters. It may be observed at the
outset that government service is not merely a contract service, it
provides a status in society which cannot be monetized in terms of money
value. The focus for the Commission was that emoluments should be such
which attract the right kind of talent by a transparent method, keeping
in mind the financial limitations of the government. The attempt has
been to provide wages commensurate with comfortable living. The pay
structure should also need to address any significant deterioration in
real value of emoluments as a consequence of inflation. One should get
proper and adequate compensation for his merit. The increase in pay
structure cannot keep pace with the market forces, at the same time it
should not be so unattractive that talent is not attracted to government
service. Therefore, we have attempted a pay structure which has as its
basis the Aykroyd formula, which reflects the basic average cost of
living in the country. The attempt has been to arrive at a proper pay
package so that the essentials of life can be availed comfortably.
1.18 While finalizing the levels of salaries, allowances and other
perquisites of compensation structure, we have tried to take a holistic
approach. We also commissioned three studies by expert bodies towards
this end:
1. Studyby IIM, Ahmedabad to understand the nature and quantum of total
compensation of select job profiles in the government sector vis-à-vis
similarly placed profiles in the CPSUs and the private sector
2. Study by Institute of Defence Studies and Analyses on nature, quantum
and components of defence expenditure and defence pension;
3. Study by IIM, Kolkata on fiscal implications of implementation of the
V and VI CPC on the finances of the Union and State Governments.
1.19 The new pay structure has been laid out by and large broadly as an
open ended, layered matrix, for civilians as well as for the armed
forces personnel. It has been kept in view that a person should not
stagnate but should have fair opportunity to progress by dint of merit
and secure better emoluments so that frustration does not set in. The
prevailing rate of increment is considered quite satisfactory and has
been retained. The concept of separate grade pay has been done away with
and the grade pay at all levels has been subsumed into the pay matrix.
The Modified Assured Career Progression (MACP) scheme has been further
modified. It is expected that the present formulation will address the
widespread dissatisfaction prevailing in the earlier system, in which
the gain or progression through the MACP was considered inadequate. The
remuneration package is such that employees would feel that they are
valued and they are fairly paid and their remuneration is not less than a
person who is similarly situated in another organisation. While
addressing this aspirational need, we are also conscious of the fact
that such employees who have outlived their utility, their services need
not be continued, and the continuance of such persons in the system
should be discouraged.
1.20 Separate pay matrices for Civilian employees, Defence Forces
personnel and those of the Military Nursing Service (MNS) have been
prepared, cell by cell, after due diligence and deliberations. The
structure, which essentially is the same for all segments, has been
simplified so that each employee can find his or her place in the
proposed matrix. All the employees belonging to various services will
proceed according to their respective service conditions by earning
increment on the basis of merit. Any disturbance of the matrix structure
will have a serious repercussion on the inter se positioning of various
levels in the hierarchy, all of which have been extensively deliberated
upon, along with the service conditions of all the employees serving in
Government of India. Therefore, the importance of not altering any portion of the three matrices cannot be emphasised enough, as doing so will disturb the parity of the services and create anomalous situations.
1.21 Furthermore, the Commission’s interaction with various
unions/associations has revealed that there is a significant lack of
standardization across cadres as far as their entry level qualifications
(ELQ), pay scales, nomenclature and promotional avenues are concerned.
The approach of this Commission is to bring about uniformity in the ELQs
and pay scales while dealing with cadres with similar job content and
responsibility across organisations.
1.22 It is also recommended that the matrix may be reviewed periodically without waiting for the long period of ten years. It can be reviewed and revised on the basis of the Aykroyd formula which takes into consideration the changes prices of the commodities that constitute a common man’s basket, which the Labour Bureau at Shimla reviews periodically. It
is suggested that this should be made the basis for revision of that
matrix periodically without waiting for another Pay Commission.
1.23 We have also revised a large number of allowances and made them
more relevant and rational. Those which have outlived their utility have
been discontinued. We also recommend that each allowance should be placed in public domain as a step towards greater transparency in governance and ease of administration.
1.24 We have also kept in view the needs of the pensioners under the old
pension system, (employees who joined before 01.01.2004) and suggested
some measures to alleviate their plight. They should also not be left in
straitened circumstances. We have suggested their proper fixation in
the new pay matrix which will provide them a respectable living. Almost
the whole lot of government employees appointed on after 01.01.2004 were
unhappy with the new pension scheme. While the National Pension System
does not form a part of our Terms of Reference,
we have recorded the sentiments of the affected employees. The
government should take a call and step in to look into their complaints.
1.25 Great dissatisfaction has been expressed with regard to medical
facilities by in-service employees as well as retired personnel. We have
suggested certain measures in the appropriate chapter, to take care of
medical facilities to serving as well as retired government employees.
The best answer appears to be medical insurance, which will not only
reduce financial liability of the government, but, if well structured,
provide quality medical services to all. We have been informed by the
Health Ministry that this is being actively explored by them.
1.26 A serious grievance has been made by all services that cadre
reviews have not taken place for years together, which has resulted in
great anguish and frustration among the services. Though it is
essentially an administrative matter, it has a serious impact on the
status and emolument of employees. On account of delay in cadre reviews,
many Central Services lag behind and that gives rise to frustration and
ultimately affects governance. We have tried to cover this issue in the
appropriate chapter in this report. A great resentment and anguish has
been expressed by Central Civil Service officers that they are not
getting their legitimate due vis-à-vis All India Services. Therefore,
the government should take a call and give them a proper representation
in the government.
1.27 A number of grievances or so called anomalies have been placed
before the Commission. Many have their roots not in the recommendations
made by the VI CPC, but in the subsequent modifications made by the
government and the resultant orders issued by it. Often these resulted
in anomalies, many of which could not be rectified till date. Wherever
possible we have tried to remove these anomalies. We also suggest that
an appropriate body may be created to look into anomalies, if any
arising out of the implementation of the recommendations of the Seventh
CPC. The body so created may be in position for a period of six months
at least so that if any anomaly arises in implementation of the
recommendation of this Commission, it can be immediately attended to and
the affected persons need not wait for another decade.
1.28 The terms of reference place emphasis on productivity,
accountability and performance. This brings into focus the concept of
Performance Related Pay, which has emerged over the past three Central
PayCommissions. The VICPC recommended a framework for performance pay.
In furtherance of this, guidelines were drawn up based on the
performance measurement methodology of the Results Framework Document
(RFD). However, at that time, the RFD system was still being put in
place and many departments were in the process of adopting this system.
As a result, the scheme on performance pay could not take off. RFD
system has taken firm roots now. We are recommending introduction of
Performance Related Pay for all categories of Central Government
employees, based on RFD, Annual Performance Appraisal Reports and some
broad guidelines. We are also of the view that there should not be
automatic payment of bonus and all existing schemes of payment of
bonuses should be linked to productivity. There is no blueprint for
enhancing efficiency and productivity in the government. The
organization systems in the government are generally large,
multi-layered and complex. Improvement of efficiencyand productivityin
such a setting depends on a whole range of extrinsic and intrinsic
factors. A large number of issues that were placed before this
Commission by various Cadres/Associations related to cadre matters,
issues of administrative nature,
organizational structure etc. The broader issues of efficiency,
productivity, excellence and service delivery should ideally be dealt
with administratively by a body such as the Administrative Reforms
Commission or Civil Service Reforms Commission.
1.29 As we have mentioned above, government service is not a contract.
It is a status. The employees expect a fair treatment from the
government. The States should play role model for the services. In this
connection, it will be useful to quote the observations in the case of Bhupendra Nath Hazarika and another vs. State of Assam and others (reported in 2013(2)Sec 516) wherein the Apex Court has observed as follows: “……… It should always be borne in mind that legitimate aspirations of the employees are not guillotined and a situation is not created where hopes end in despair. Hope for everyone is gloriously precious and that a model employer should not convert it to be deceitful and treacherous by playing a game of chess with their seniority. A sense of calm sensibility and concerned sincerity should be reflected in every step. An atmosphere of trust has to prevail and when the employees are absolutely sure that their trust shall not be betrayed and they shall be treated with dignified fairness then only the concept of good governance can be concretized. We say no more.”
1.30 Lastly, we must emphasize that the government should inspire
confidence in mind of civil servants that they will not be hounded by
unnecessary harassment by investigation agencies. The recent trend of
hounding civil servants as criminals for the failure of bona fide
decisions is not a happy one. This will discourage the bureaucracy to
take bold decisions in fear of being hounded if such a decision
misfires. Any misadventure should not be looked upon with suspicion
unless it has definite criminal intent to benefit either himself or
someone else. If this trend is not checked it will lead to disastrous
consequences.
1.31 The sole consideration with the Commission was to ensure that
employees do not suffer economic hardship so that they can deliver and
render the best possible service to the country and make the governance
vibrant and effective.
(A.K.Mathur) Chairman, 7th CPC
