7TH PAY COMMISSION REPORT SUBMITTED TO GOVERNMENT OF INDIA ON
19.11.2015
MOST DISAPPOINTING AND RETROGRADE
RECOMMENDATIONS – NO CHANGE IN MACP
IMPORTANT RECOMMENDATIONS
1. DATE OF EFFECT – 01.01.2016
2. MINIMUM PAY –
18000 Based on the Aykroyd
formula, the minimum pay in government is recommended to be set at ₹18,000
per month
3. FITMENT FORMULA – The fixation of revised pay has been greatly simplified in
the new pay matrix and will not involve further calculations. The basic pay
being drawn by any person on the date of implementation is to be multiplied
by a factor of 2.57 and the figure so obtained will Report of
the Seventh CPC be matched for the closest figure in the level
pertaining to his/her existing grade pay and fixed there.
PAY
BAND
|
GRADE
PAY
|
MULTIBLE
FACTOR
|
I
– 5200-20200
|
1800,
1900, 2000, 2400 &2800
|
2.57
|
II
– 9300 - 34800
|
4200,
4600, 4800 & 5400
|
2.62
|
III
– 15600-39100
|
5400,
6600 & 7600
|
2.67
|
Pay Fixation in the New Pay Structure
5.1.28 The fitment of each employee in the new pay matrix is
proposed to be done by multiplying his/her basic pay on the date of
implementation by a factor of 2.57. The figure so arrived at is to be located
in the new pay matrix, in the level that corresponds to
the employee’s grade pay on the date of implementation, except in cases
where the Commission has recommended a change in the existing grade pay. If
the identical figure is not available in the given level, the next higher
figure closest to it would be the new pay of the concerned employee. A couple
of examples are detailed below to make the process amply clear
5.1.29 The pay in the new pay matrix is to be fixed in the
following manner:
Step 1: Identify
Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the
date of implementation. This figure is ‘A’.
Step 2: Multiply
‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.
Step 3: The
figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the
Level assigned to his/her grade pay, will be the new pay in the new pay matrix.
In case the value of ‘B’ is less than the starting pay of the Level, then the
pay will be equal to the starting pay of that level.
Example I
i. For example an employee H is presently
drawing Basic Pay of ₹55,040 (Pay in the Pay Band ₹46340 + Grade
Pay ₹8700 = ₹55040). After multiplying ₹55,040 with 2.57, a
figure of ₹1,41,452.80 is arrived at. This is rounded off
to ₹1,41,453.
ii. The level corresponding to GP 8700 is level 13, as may
be seen from Table 4, which gives the full correspondence between existing
Grade Pay and the new Levels being proposed.
iii. In the column for level 13, the figure closest to ₹1,41,453
is ₹1,41,600.
iv. Hence the pay of employee H will be
fixed at ₹1,41,600 in level 13 in the new pay matrix tabke
5.1.30 As part of its recommendations if Commission has
recommended any upgradation or downgrade in the level of a particular post, the
person would be placed in the level corresponding to the newly recommended
grade pay.
7TH CPC PAY FIXATION ILLUSTRATION
A. Select your basic pay as on 01.01.2016 including grade
pay - It is your basic pay
B. Identify your grade pay and pay band to select the Pay
Matrix Table No: 5 to identify your level according to your Grade pay
C. Multiply your basic pay as given below:
PAY
BAND
|
GRADE
PAY
|
MULTIBLE
FACTOR
|
I
– 5200-20200
|
1800,
1900, 2000, 2400 &2800
|
2.57
|
II
– 9300 - 34800
|
4200,
4600, 4800 & 5400
|
2.62
|
III
– 15600-39100
|
5400,
6600 & 7600
|
2.67
|
|
|
|
D. Multiply your basic pay [Pay + Grade pay] as on 01,01,2016
with the above factor according to your Grade pay and round-off
to the nearest rupee, and obtain result = X
E. The figure so arrived at, i.e., ‘X’ or the next higher
figure closest to it in the Level assigned to your grade pay, will be the new
pay in the new pay matrix. In case the value of ‘X’ is less than the starting
pay of the Level, then the pay will be equal to the starting pay of that level.
F. The above arrived figure is your Rationalized entry pay i.e.
your new basic pay as on 01.01.2016. In the above formula, your existing DA 119
is automatically merged with the multiply factor.
G. This is the first pay commission avoiding disparity in the
pay fixation in arriving arrears and all the officials from new recruits to
retiring person will get the benefit equally as per the above multiple factor
according your Grade pay.
ILLUSTRATION:
PAY
BAND
|
GRADE
PAY
|
BASIC
PAY AS ON 01.01.2016
|
TOTAL
PAY AS ON 01.01.2016
|
MULTIBLE
FACTOR
|
NEW
BASIC PAY AS ON 01.01.2016
|
ROUNDED
NEW BASIC PAY AS ON 01.01.2016
|
I
|
1800
|
7500
|
9300
|
2.57
|
23901
|
24200
|
1900
|
8500
|
10400
|
26728
|
26800
|
2000
|
9500
|
11500
|
29555
|
30200
|
2400
|
11000
|
13400
|
34438
|
35300
|
2800
|
13000
|
15800
|
40606
|
41600
|
II
|
4200
|
15000
|
19200
|
2.62
|
50304
|
50500
|
4600
|
18000
|
22600
|
59212
|
60400
|
4800
|
21000
|
25800
|
67596
|
68000
|
5400
|
24000
|
29400
|
77028
|
77900
|
Note:
The basic pay mentioned above as on 01.01.2016 is only example for the
illustration. You replace it with your basic pay as on 01.01.2016 and calculate
your pay. It is simple mechanism.
4. FIXATION ON PROMOTION – NO CHANGE –
ONLY ONE INCREMENT IN THE OLD SCALE
A. For those who have been promoted from the previous level,
the fixation of pay in the new level will depend on the pay they were already
drawing in the previous level, after grant of 3% increment,
the official pay will be fixed to the next level.
- When the employee receives a promotion or a
non-functional financial upgrade, he/she progresses one level ahead on the
horizontal range – Para 5.1.23. [As per this para, if any
officials will get LSG/HSG promotion after getting MACP, the
officials will get fixation benefit to the next stage as mentioned in
Matrix table.]
5. ANNUAL INCREMENT – 3% NO CHANGE
a. Suppose,
Ms. ABC, who, after having been fixed in the Pay Matrix, is drawing a Basic Pay
of ₹32,300 in Level 4. When she gets an annual increment on 1st of
July, she will just move one stage down in the same Level. Hence,
after increment, her pay will be ₹33,300. [Even though 3% increment is
only for calculation, but the official will be placed one stage own in the same
level.
b. WITH HOLDING OF ANNUAL INCREMENT - The Commission is therefore proposing 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
6. MODIFIED ASSURED CAREER PROGRESSION –
NO CHANGE
a. The
inherent issues in the existing pay structure owing to which there was
widespread resentment have been set right by way of rationalisation of pay
levels, abolition of pay band and grade pay Report of the Seventh
CPC and introduction of a matrix based open pay structure. Hence,
there is no justification for increasing the frequency of MACP
b. No change in 10, 20, 30 years
- Performance benchmarks
for MACP have been made more stringent from “Good” to “Very Good”. The
Commission has also proposed that annual increments not be granted in the case
of those employees who are not able to meet the benchmark either for MACP or
for a regular promotion in the first 20 years of their service. No other changes in MACP recommended.
7. PAY BAND, GRADE PAY SYSTEM ABOLISHED
- Considering the issues
raised regarding the Grade Pay structure and with a view to bring in greater
transparency, the present system of pay bands and grade pay has been
dispensed with and a new pay matrix has been designed. Grade Pay has been
subsumed in the pay matrix. The status of the employee, hitherto determined by
grade pay, will now be determined by the level in the pay matrix.
8. MAXIMUM PAY INCREASE – 14.29% - This fitment factor of 2.57 is being proposed to be applied
uniformly for all employees. It
includes a factor of 2.25 on account of DA neutralisation, assuming that the
rate of Dearness Allowance would be 125 percent at the time
of implementation [01.01.2016] of the new pay. Accordingly, the actual
raise/fitment being recommended is 14.29 percent
Comments: [ Actually
our basic pay + Grade pay = 100% DA as on 01.07.2015-119% and as on 01.01.2016
presumed as 125%. As such, at present we are getting 225% [100 + 125} i.e.2.25
, where as our fitment formula recommended as 2.57. The difference of 2.57-2.25
= 0.32 % is the only real increase of our existing pay.]
9. ALLOWANCES – NO IMPROVEMENT
Commission recommended
abolition of 52 existing allowances such as Assisting Cashier Allowance, Cash
Handling Allowance, Treasury Allowance, Handicapped Allowance, Risk Allowance,
Savings Bank Allowance, Special compensatory (Hill Area) Allowance, Cycle Allowance,
Family Planning Allowance etc. Another 36 allowances have been abolished as separate
identities, but subsumed either in an existing allowance or in newly proposed
allowances. Allowances relating to Risk and Hardship will be governed by the
proposed Risk and Hardship Matrix.
10. HRA
REDUCED TO 26%, 16% AND 8% FOR X, Y AND Z CITIES - Since the Basic Pay has been revised upwards,
the Commission recommends that HRA be paid at the rate of 24 percent, 16
percent and 8 percent of the new Basic Pay for Class X, Y and Z cities
respectively. The Commission also recommends that the rate of HRA will be
revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50
percent, and further revised to 30 percent, 20 percent and 10 percent when DA
crosses 100 percent
11. Advances: All non-interest bearing Advances have been
abolished - Regarding interest-bearing Advances, only Personal Computer Advance
and House Building Advance (HBA) have been retained. HBA ceiling has been
increased to ₹25 lakhs from the present ₹7.5 lakhs
12. DA
FORMULA – NO CHANGE FOR FUTURE INDEX - Commission recommends continuance of the
existing
formula and methodology for calculating the Dearness Allowance
13. Central Government Employees Group Insurance
Scheme (CGEGIS): The Rates of
contribution as also the insurance coverage under the CGEGIS have remained
unchanged for long. They have now been enhanced suitably. The following rates
of CGEGIS are recommended:
|
Present
|
Proposed
|
Level
of Employee
|
Monthly
Deduction
(₹)
|
Insurance
Amount
(₹)
|
Monthly
Deduction
(₹)
|
Insurance
Amount
(₹)
|
10 and above
|
120
|
1,20,000
|
5000
|
50,00,000
|
6
to 9
|
60
|
60,000
|
2500
|
25,00,000
|
1
to 5
|
30
|
30,000
|
1500
|
15,00,000
|
14. COMPARISON BETWEEN MINIMUM AND
MAXIMUM PAY – 1:11.4 (18000 : 205400)
15. NUMBER OF PAY SCALES – NOT REDUCED - NO
DELAYERING
16. CASUAL
LEAVE – NO INCREASE
17. CHILD
Care Leave - 1st 365 days – Full pay (100%) -
Next 365 days – 80% Pay only.
18. MATERNITY
LEAVE – NO CHANGE -
19. LEAVE
ENCASHMENT AT THE TIME OF RETIREMENT – NO INCREASE MAXIMUM 300 DAYS ONLY
20. MEDICAL
- Medical Insurance Scheme for serving and retired employees recommended.
21. TRANSPORT
ALLOWANCE - NO HIKE - ONLY 125% MERGER
Pay Level
|
Higher Transport Allowance cities (A, AI)
|
Other places
|
9 and above
|
7200 + DA
|
3600 + DA
|
3 to 8
|
3600 + DA
|
1800 + DA
|
1 and 2
|
1350 + DA
|
900 + DA
|
22. LEAVE
TRAVEL CONCESSION (LTC) – NO CHANGE - Splitting of Home Town LTC for
employees Posted in North East, Laddakh, Andaman & Nicobars and Lakshdweep
allowed.
23. ACCOUNTS
STAFF BELONGING TO UNORGANIZED ACCOUNTS INCLUDING SBCO STAFF – PARITY WITH
ORGANISED ACCOUNTS REJECTED - The
Commission has noted that the stipulated entry level qualification and
recruitment process of Postal Assistants (SBCO) is similar to that of direct
recruit Postal Assistants in the Postal Assistants’ cadre and their promotional
channel is also identical. The Commission is therefore of the view that no up
gradation is warranted
24. PERIODICAL REVIEW OF WAGES (NOT
TEN YEARS) RECOMMENDED. NO PAY COMMISSION REQUIRED
25. PERFORMANCE
RELATED PAY SHOULD BE INTRODUCED IN GOVERNMENT SERVICES AND ALL BONUS PAYMENT
SHOULD BE LINKED TO PRODUCTIVITY - Productivity Linked Bonus for all.
26. COMPULSORY
RETIREMENT AND EFFICIENCY BAR REINTRODUCED - Failure to get required bench Mark
for promotion within the first 20 years of service will result in stoppage of
increment. Such employees who have out lived their ability, their services need
not be continued and the continuance of such persons in the service should be
discouraged.
27. PROMOTEE
AND DIRECT RECRUITS – ENTRY LEVEL PAY ANOMALY IS REMOVED
JCM (SS) demand – the
differential entry pay between new recruits and promoted employees should be
done away with.
28. CADRE
REVIEW TO BE COMPLETED IN A TIME BOUND MANNER - Commission recommended to
hasten the process of cadre review and reduced the time taken in
inter-ministerial consultations.
29. NEW
PENSION SCHEME – WILL CONTINUE
30. CEA
& HOSTEL SUBSIDY Rate
CEA per
month
2250 - 25% increase when DA crosses
Hostel subsidy
6750 –
50& increase when DA crosses
31. IPO/ASP/SP
SCALE UPGRADED : Commission has noted that the VI CPC had placed
Inspector (Posts) at par with Inspector of CBDT/CBED. Subsequently the
Inspector of CBDT/CBE were elevated to GP 4600. The Commission has further
noted that the Inspector of Posts and Inspector of CBDT/CBED are recruited
through the same combined graduate level examination. Therefore the commission
recommended 4600 GP for IP and 4800 GP and 5400 GP for SPOs.
32. ADDITIONAL WORK
ALLOWANCE - 2%
of the Basic Pay per month - 10% of the Basic pay if period exceeds 45 days.
33. DAILY
ALLOWANCE:
LEVEL
|
ACCOMMODATION
CHARGES
|
TRAVELLING
CHARGES
|
DAILY
ALLOWANCE LUMP SUM AMOUNT
|
14
and above 7500
|
7500
|
AC
Taxi charges up to 50 km
|
1200
|
12
and 13 4500
|
4500
|
Non-AC
Taxi charges up to 50 km
|
1000
|
9
to 11 2250
|
2250
|
338
per day
|
900
|
6
to 8 750
|
750
|
225
per day
|
800
|
5
and below 450
|
450
|
113
per day
|
500
|
NOTE: The
Lump sum amount will increase by 25 percent whenever DA increases by 50
percent.
34. Regarding Personal and HBA interest-bearing advances, the
following is recommended
NAME OF THE ADVANCE
|
RECOMMENDED CEILING
|
RECOMMENDATIONS
|
PC Advance
|
50,000 or actual price
of PC, whichever is
lower
|
May be allowed maximum five times in the
entire service.
|
HBA
|
34 times Basic Pay
OR
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.
|
35.
GDS: The Supreme Court judgment also states that GDS are only holders of
civil posts but not civilian employees. The Commission endorses this view and therefore has no
recommendation with regard to GDS
PENSIONARY BENEFITS
1 . PENSIONERS – PARITY – LONG STANDING DEMAND OF THE
PENSIONERS ACCEPTED - The
Commission recommends a revised pension formulation for civil employees
including CAPF personnel as well as for Defence personnel, who have retired
before 01.01.2016. 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.
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.
Fifty percent of the total amount so arrived
at shall be the new pension.
An alternative calculation will be carried
out, which will be a multiple of 2.57 times of the current basic pension. The
pensioner will get the higher of the two
2 . PENSIONERS
– MINIMUM PENSION RS. 9000/- (50% of the minimum pay recommended by the
7th CPC)
3. . PENSIONERS
– GRATUITY - Enhancement in the ceiling of gratuity from the existing ₹10
lakh to ₹20 lakh. The ceiling on gratuity may be raised by 25 percent
whenever DA rises by 50 percent.
4.. PENSIONERS
– FIXED MEDICAL ALLOWANCE (FMA) – NO CHANGE (RS. 500/-
5. Introduction of a Health Insurance
Scheme for Central Government employees and pensioners has been
recommended - Meanwhile, for the benefit of pensioners residing outside the CGHS
areas, CGHS should empanel those hospitals which are already empanelled under
CS (MA)/ECHS for catering to the medical requirement of these pensioners on a
cashless basis. All postal pensioners should be covered under CGHS. All
postal dispensaries should be merged with CGHS.
6. 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 various
circumstances relating to performance of duties, to be applied uniformly for
the defence forces personnel and civilians including CAPF personnel.
7. New Pension System: The
Commission received many grievances relating to NPS. It has recommended a
number of steps to improve the functioning of NPS. It has also recommended
establishment of a strong grievance redressal mechanism.
8.. Performance Related Pay: The
Commission has recommended introduction of the Performance Related Pay (PRP)
for all categories of Central Government employees, based on quality Results
Framework Documents, reformed Annual Performance Appraisal Reports and some
other broad Guidelines. The Commission has also recommended that the PRP should
subsume the existing Bonus schemes.
Thanks to
Shri. J.SUKUMAR
EX. GENERAL SECRETARY
AISBCE UNION
MADURAI - 625016
