• 7th Pay Commission

    Prime Minister Manmohan Singh has approved composition of the 7th Pay Commission, which will revise the salaries of over 50 lakh central government employees.

  • 50% DA MERGER

    Federation demanded the central government to merge the 50 Percent DA with basic Pay. ...

  • DA JULY 2014

    Let us move on to ‘Expected dearness allowance from July 2014’. ...


    Promotion would be greatly affected due to no retirement in the long span. ...


    LDC-UDC whose cases have been ignored by successive pay commissions and Governments with regard to the payment of equal pay for equal work ...

Tuesday, April 22, 2014

Payment of Conveyance Allowance to Deaf and Dumb employees at par with Blind and Orthopeadically Handicapped employees

File No. 3/5/2007-SCT(B)
Government of India
Ministry of Finance
Department of Financial Services
New Delhi, dated 11th April, 2014.
1. The Chief Executives of all Public Sector Banks,
Public Sector Insurance Companies, Financial Institutions
2. Executive Director, Reserve Bank of India, Mumbai.

Subject: Payment of Conveyance Allowance to Deaf and Dumb employees at par with Blind and Orthopeadically Handicapped employees.

I am directed to refer to the subject cited above and to say that as per this Department's letter of even number dated 18.2.2009, Conveyance Allowance is payable to Blind and Orthopeadically handicapped employees n Public Sector Banks, Public Sector Insurance Companies, Financial Institutions and Reserve Bank of India, as per prescribed rates.

2. Department of Expenditure in the Ministry of Finance vide its Office Memorandum No. 21(2)/2011-Estt..II(B) dated 19th February, 2014(copy enclosed), has informed that in compliance with order dated 12th December, 2013 of the Hon'ble Supreme Court of India in WP(Civil) No. 107 of 2011, titled Deaf Employees Welfare Association and Anothers Vs Union of India and Others, it has been decided to extend the benefit of Transport Allowance, as admissible to Blind and Orthopeadically Handicapped employees in terms of their OM No. 21(2)/2008-E.II(B) dated 29th August, 2008(copy enclosed), to deaf and dumb employees of the Central Government with immediate effect.

3. The matter was examined in this Department and it has been decided to extend these benefits to deaf and dumb employees of Public Sector Banks, Public Sector Insurance Companies, Financial Institutions and Reserve Bank of India etc. subject to the condition that the recommendation of the Head of ENT Department of a Govt. Civil Hospital is received by the Head of Human Resources Department of the respective financial institution and fulfillment of other conditions mentioned in MoF, Deptt. of Expenditure OM No. 19029/1/78-E.IV(B) dated 31st August, 1978 (copy enclosed) read with OM dated 29.8.2008.

4. It is requested that a Board Note for paying Conveyance Allowance as prescribed in the letter referred above to Deaf and Dumb employees, at par with Blind and Orthopeadically handicapped employees in your organization, be placed before your Board of Directors for implementation, with immediate effect.

Yours faithfully,
(J.S. Phaugat)
Under Secretary(Welfare)

Source: http://financialservices.gov.in/ncapp/Circulars.aspx?ct=B

Agenda for discussion in the Standing Committee of National Council(JCM)

Dated: April 9, 2014 
The Chairman,
Standing Committee National Council(JCM),
South Block, New Delhi

Dear Sir,

Sub: Agenda for discussion in the Standing  Committee of National Council(JCM)

An agenda, comprising of 09 items, to be discussed in the Standing Committee of the National Council(JCM), is being enclosed herewith for necessary action.

Yours faithfully, 
(Shiva Gopal Mishra) 
Secretary, Staff Side 
National Council(JCM)
DA/As above

Copy to: All Constituent Organisations of the National Council(JCM) – for information.

The Government of India have finalized the Terms of Reference of the 7th CPC and circulated the same vide Ministry of Finance’s Resolution No1/1/2013-E.III (A) dated 28th February, 2014. It is a matter of concern that and disappointment that the Terms of Reference have been finalised unilaterally without having thorough discussion with the Staff Side and their views have also not been taken care of while doing so.

It may be recalled that a meeting was convened by the Secretary (Personnel) with the Staff Side members on 24th October, 2013 to discuss the possible Terms of Reference for the 7th CPC being appointed. In that meeting the Staff side had specifically requested that a copy of Terms of Reference for 7th CPC, as proposed by the Ministry of Finance may be circulated to all concerned and thereafter another meeting with Secretary, Department of Expenditure and Department of Personnel & Training be arranged with the Staff Side to discuss and finalise the same, which is clearly mentioned in para 11 of the Record Note of Discussion of that meeting. Subsequently, the Staff Side again requested for an urgent meeting with the Secretary(Expenditure) and Secretary DoPT for finalization of the Terms of Reference (ToR) for the Seventh Central Pay Commission vide its letter dated 23rd January, 2014. However, no such meeting was convened and Terms of Reference for the 7th CPC have been finalised by the Government on 28th February, 2014.

While going through the ToR, as finalized by the Government, it is observed that many of the suggestions of the Staff Side, in regard to date of effect of Pay Commission, Merger of D.A., Interim Relief, representation of labour representative in the Commission itself, parity issues in regard to pensioners, settlement of the pending Anomaly items etc., have not been duly considered, which is a matter of dissatisfaction.

The Staff Side, therefore, demands that the Government must discuss the Terms of Reference for the 7th CPC with them and make necessary amendments/revisions to the Terms of Reference.

1. Revision of Wage with effect from 01.01.2011
The present wage structure of the Central Government employees is in vogue on the basis of the recommendations of the 6th Central Pay Commission, which took effect from 01.01.2006 in the case of Pay, and in the case of Allowances from 01.09. 2008.

The wage revision of the Central Government employees is done every 10 years, which was recommended by the 5th CPC, however, in the case of Central PUSs, the wage revision normally takes place after every five years. In the past, wage revision has been linked to the extent of erosion of real wages. The degree of inflation in the economy determines the pace of erosion of the real value of wages. The retail prices of those commodities which are computed for determining the minimum wages have risen by about 160% from 01.01.2006 to 01.01. 2011, whereas the D.A. compensation, in the case of Central Government employees, on that date had been just 51%.

Since wage revision in all the Central Public Sector Undertakings takes places every five years through collective bargaining, revision of wages of the Central Government employees in 10 years gives rise to serious disparity in wages and allowances of the Central Government employees, vis-a-vis those in Public Sector Undertakings, which is a major cause of discontentment among them. The Staff Side, therefore, demands that the wage revision of the Central Government employees must also take place after every 5 years on the analogy of CPUSs and therefore, Government must specify the date of effect of the recommendations of the 7th CPC accordingly, i.e. to take effect from 01.01.2011 in place of 01.01.2016.

2. Merger of DA with Pay
The wage revision of the Central Government employees takes place only through setting up of Central Pay Commissions, which has many a times proved to be a time consuming process. The 6th CPC submitted its report in the time frame provided to it, i.e. 18 months. Since the earlier Commissions had covered many aspects of the principles of wage determination and the periodicity of such revision had come down, the exercise might not now require a longer period of time as was the case earlier, still the 7th CPC shall require a reasonable time frame to go into the matter judiciously because the implementation of the recommendations of the 6th CPC have given rise to large number of anomalies and cadre related grievances.

The methodology adopted for compensating the erosion in the real value of wages in the interregnum period had always been though the mechanism of merger of a portion of DA. The 5th CPC had recommended that the DA must be merged with pay and treated as pay for computing all allowances as and when the percentage of Dearness compensation exceeds 50%. Accordingly even before the setting up of the 6th CPC the DA to the extent of 50% was merged with pay.

As on 1.1.2014, the Dearness compensation is 100%. The suggestion for merger of DA to partially compensate the erosion in the real wages was first mooted by the Gadgil Committee in the post 2nd Pay Commission period. The 3rd CPC had recommended such merger when the Cost of Living index crossed over 272 points i.e. 72 points over and above the base index adopted for the pay revision. In other words, the recommendation of the 3rd CPC was to merge the DA when it crossed 36%. The Government in the National Council JCM at the time of negotiation initially agreed to merge 60% DA and later the whole of the DA before the 4th CPC was set up. The 5th CPC merged 98% of DA with pay. It is, therefore, necessary that the Government takes steps to merge atleast 50% of DA with pay to compensate the erosion of the real value of wages immediately.

3. Appointment on compassionate grounds under the Central Government
Under the pretext of Hon’ble Supreme Court directives, the Central Government introduced a 5% ceiling on compassionate ground appointment. On account of this ceiling limit of 5%, a large number of cases of appointment on compassionate grounds of the dependents of the deceased Central Government employees have been pending in different departments, with the result that, the bereaved families of the late employees are constraints to face undue hardship due to loss of bread winner. Some of such candidates, belonging to Department of Posts, approached the Hon’ble Court of Law and obtained favourable orders, however, these directives have not been acted upon. The Government has chosen to dillydally by filing SLP in the Supreme Court.

It may be recalled that, the Central Administrative Tribunals were established with the intention of expeditious settlement of disputes on service matters. Even recently the Prime Minister's office ordered that it would not be open for various Ministries to appeal against the orders of the Tribunal as a matter of course and efforts must be to explore the ways of acceptances of the judgements of the Tribunal. In the light of these directives, the SLP ought to have been withdrawn.

It is pertinent to further mention here that, the standing Committee on Department of Personnel in one of their reports has termed the scheme of compassionate ground appointments as a sacred assurance to a fresh entrant that if he dies in harness, his family shall not be left in lurch. Such an assurance is being breached by the provisions of limiting such appointments to 5% of vacancies.

The Staff Side is, therefore, of the firm view that this condition of 5% ceiling must be done away with to provide relief to the bereaved families of the deceased Central Government employees.

4. Regularisation of Casual/Contingent/Daily Rate workers
Due to ban on creation of posts and recruitment of personnel that continued for a very long period and the consequent strain on the existing workers, many departmental heads had to recruit personnel on daily rated basis or as casual workers. Thus, almost 25% of the present workforce in the Governmental organisations are casual workers deployed to do permanent and perennial nature of jobs, contrary to the prohibition of such unfair labour practices by the law of the land. In the fifties and sixties, even the casual workers who had been employed to do casual and non perennial jobs used to get priority for regular employment as and when vacancies for such permanent recruitment arise. It is, however, a matter of concern that thousands of persons are now recruited as casual workers and kept as such for years together and are paid pittance of a salary with no benefits, like Provident Fund, Dearness Allowance, other Compensatory Allowances etc. In order to ensure that they do not get the benefit of regularisation, these workers  are technically discharged for a few days to be employed afresh again. The modus operandi differs from one department to another. While in some organisations, they are recruited through Employment Exchanges, in others, the functions are contracted out. Not only the quality of work suffers, but it is also an inhuman exploitation of the workers given the serious situation of unemployment that exists in the country. While the permanent solution is to sanction the necessary posts and resort to regular recruitment, the Government should evolve a scheme by which these casual/contingent/daily rated workers are made regular workers with all the concomitant benefits available for regular Government employees. Pending finalisation of such a scheme for regularisation, the non regular employees recruited for meeting the exigencies of work must be paid pro-rata salary on par with similarly placed regular employees on the principle of equal pay for equal work.

5. Downsizing, Outsourcing, Contractorisation etc.
To overcome the difficulties emanated from the total ban on recruitment and creation of posts and more specifically impacted by the 2001 executive fiat of the Government of India in the matter, many departments had to resort to outsourcing of its functions. Some were virtually closed down and a few others were privatised or contractorised. The large scale outsourcing and contractorisation of functions had a telling effect on the efficacy of the Government departments. The delivery system was adversely affected and the public at large suffered due to the inordinate delay it caused in getting the requisite service. The financial outlay for outsourcing of functions of each department increased enormously over the years, as a consequence of which, the quality of work suffered. In order to ensure that the people do get a better and efficient service from the Government departments and to raise the image of the Government employees in the eyes of the common people, it is necessary that the present scheme of outsourcing and contractorisation of essential functions of the Government must be abandoned. The practice of outsourcing and contractorisation is nothing but a cruel exploitation of the alarming situation of unemployment. The system of outsourcing of the functions seeks to informalise the workforce. The contract/casual workers get not even one third of the salary of the regular work force. They have no social security benefits like pension, provident fund gratuity etc. The Central Government employees fought against the temporary service rules which was in vogue in sixties and ensured that the recruitment to Government service is permanent and the civil servants are not allowed to be fired at the whim and fancy of their bosses. The outsourcing and contractorisation has paved way for large scale entry of casual workers and has resulted in the reversal of what all achieved in this direction through struggles in the past two decades.

The prevalent system of outsourcing and contractorisation, therefore, needs to be abandoned and all the regular and perennial nature works should be entrusted on regular Government employees only.
6. Revising Overtime Allowance(OTA) and Night Duty Allowance Rates
It may be seen that the Overtime Allowance is seldom paid to the Government employees. It is only in case of emergency and in the contingency in which the work cannot be postponed, like that happens in the Railways in smooth running of trains round the clock, in the RMS Division of Postal Department, in the Atomic Energy Commission offices or when the Parliament is in session in other administrative offices, employees are asked to do work beyond the stipulated working hours. The Night Duty Allowance is, however, paid to Government employees who have to work in night shifts with certain stipulated conditions. The 4th CPC recommended that since there had been considerable misuse of the provisions relating to grant of OTA, the Government should find alternative methods to compensate the employees who are asked to work on over time and pending such a scheme being evolved recommended not to revise the rates. However, the Government did not bring in any new scheme but issued the directive that the OTA and Night duty allowance will be paid to the employees who are called upon to do overtime or night duty on the basis of the 4th CPC pay structure. This directive is still in vogue.

Owing to certain disagreements with the Government on these issues, this matter was referred to Board of Arbitration under the JCM Scheme, whereupon the Board of Arbitration, having found unreasonable position taken by the Government, gave out the award in favour of the staff and directed the Government to revise the order whereby the allowance will be linked to the actual pay of the Government employees. The Government did not accept this award and decided to approach the Parliament for rejection of the same. The matter has not yet been placed in the form of a resolution in the Parliament. Despite the fact that the employees had been abiding by the directive of their superiors to be on overtime/night duty, and despite having won the case before the Board of Arbitration they continue to be compensated on the basis of the Notional pay as in 1986. There cannot be a much bigger injustice meted out to the employees. The Government must accept the award of the Board and issue instructions linking the Allowance to the actual pay of the employee.

7. Stepping up of pay of seniors who are drawing less pay than the juniors consequent on fixation of pay due to implementation of 6th CPC recommendations between Direct Recruits and Promotees
Consequent upon implementation of the recommendations of the VI CPC, in respect of pay scales of various categories of staff, there are certain situations where the senior who were promoted before 01.01.2006 are getting lesser pay than their juniors promoted after 01.01.2006, on fixation of their pay w.e.f. 01.01.2006. This, being a serious anomaly, has been raised by different department in their Departmental Anomalies Committees for redressal thereof. While clarifications regarding stepping up of pay of senior who are drawing less pay than the juniors between Direct Recruitees and Promotees, i.e. the seniors and juniors placed in a pay scale, having some Direct Recruitment Quota, have already been issued, whereby seniors’ pay has been stepped up and equated to the juniors. However, in grades where there is no element of Direct Recruitment available, this provision has not been made till date, with the result that, the seniors are still drawing lesser pay than their juniors after fixation of their pay in new pay scales w.e.f. 01.01.2006, which, being a serious anomaly, is resulting in discontentment prevailing among the seniors.

The main incongruity in this case is basically due to the fact that it is for the first time that the 6th CPC has recommended specific entry level pay for Direct Recruits (DRs). This has resulted in employees who were appointed in service prior to the DRs and got promoted earlier are getting less pay as compared to their counterparts recruited directly and who joined after 1.1.2006. It has always been the case that on promotion, the pay of a promoted employee is never fixed at less than the entry level of pay of that post as admissible to a direct recruit.

The Staff Side, therefore, is of the firm view that orders need to be issued to the effect that the pay on promotion w.e.f. 01.01.2006 would not be fixed less than at the prescribed minimum of the Entry Pay as provided for the Direct Entrants in the Revised Pay Rules, to eliminate this anomalous situation.

8. Stepping up of pay of senior employees at par with their juniors consequent upon implementation of MACPS
The Modified Assured Progression Scheme(MACPS) came into effect on 01.09.2008, and prior to this, Assured Career Progression(ACP) was in vogue. There are number of cases where the seniors who were promoted before implementation of the MACPS and the juniors who could not get normal promotion due to non-availability of vacancy or otherwise, and were extended the benefit of financial upgradation under MACPS on fulfillment of conditions laid down therein, the seniors are drawing lesser pay than their juniors under this scheme.

The MACP Scheme does not stipulate the provision of stepping up of pay of the seniors at par with their juniors, in case the seniors getting lesser pay than their juniors, which is absolutely unjustified and discriminative.

The Staff Side has repeatedly raised this issue in the MACPS’s Anomaly Committee as well, however, this discrepancy has not been done away with till date, with the result that, the seniors are still drawing lesser pay than their juniors, having been extended the benefit of financial upgradation under MACPS and this is causing deep sense of frustration prevailing among the seniors.

Staff Side, therefore, is of the firm opinion that the above-mentioned discrepancy needs to be addressed at the earliest to provide relief to the seniors.

9. Granting of Additional Pay to Loco & Traffic Running Staff
On the basis of recommendations of the 6th CPC, Additional Pay of Rs.1000 p.m. with appropriate Dearness Allowance has been granted in favour of Loco Pilot(Mail/Express)/Sr. Motorman(PB-II, GP Rs.4200)/(Rs.6000-9800)(5th CPC). Similarly, Rs.500 has been granted to Loco Pilot(Passenger II/ Motorman)(PB-II, GP Rs.4200)/(Rs.5500-9000)(5th CPC) and Guard(Mail/Exp.)(PB-II, GP Rs.4200) (Rs.5500-9000)(5th CPC). But the same Additional Pay has not been granted to rest of the Loco & Traffic Running Staff, causing great injustice to these set of Loco & Traffic Running Staff.

It would be quite appropriate that the Additional Pay should be granted in favour of all other categories of Loco & Traffic Running Staff.

Source: AIRF

7th CPC Questionnaire

Meena Agarwal

D.O No. 7CPC/15/Questionnaire
9th April, 2014

Dear ………..,

As you may be aware the Seventh Central Pay Commissions has been constituted by the Government on 28 February 2014 with a view to go into various issues of emoluments’ structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required. The terms of reference of the Seventh Central Pay Commission are available on the http://7cpc.india.gov.in .

2. A Questionnaire seeking the considered views of all stakeholders is enclosed. The response of your Ministry to this Questionnaire is sought. I shall be grateful if the replies are furnished to the Commission on or before 10th May, 2014, so as to enable the Commission to take them into account as part of its examination of the issues that it is mandated to address. The reply may be sent to Post Box No. 4599, Hauz Khas P.O, New Delhi 110 016, and in the case of email to secy-7cpc@nic.in.

Encl:- As above.

With Regards, 

Yours sincerely, 

(Meena Agarwal) 
To all Secretaries to Govt of India  
 7th CPC Questionnaire  
1. Salaries

1.1 The considerations on which the minimum salary in case of the lowest Group ‘C’ functionary and the maximum salary in case of a Secretary level officer may be determined and what should be the reasonable ratio between the two.

1.2 What should be the considerations for determining salary for various levels of functions falling between the highest level and the lowest level functionaries?

2. Comparisons

2.1 Should there be any comparison/parity between pay scales and perquisites between Government and the private sector? If so, why? If not, why not?

2.2 Should there at all be any comparison/parity between pay scales and perquisites between Government and the public sector? If so, why? If not, why not?

2.3 The concept of variable pay has been introduced in Central Public Sector Enterprises by the Second Pay Revision Committee. In the case of the Government is there merit in introducing a variable component of pay? Can such variable pay be linked to performance?

3. Attracting Talent

3.1 Does the present compensation package attract suitable talent in the All India Services & Group A Services? What are your observations and suggestions in this regard?

3.2 To what extent should government compensation be structured to attract special talent?

4. Pay Scales

4.1 The 6th Central Pay Commission introduced the system of Pay Bands and Grade Pay as against the system of specific pay scales attached to various posts. What has been the impact of running pay bands post implementation of 6th CPC recommendations?

4.2 Is there any need to bring about any change?

4.3 Did the pay bands recommended by the Sixth CPC help in arresting exodus and attract talent towards the Government?
 4.4 Successive Pay Commissions have reduced the number of pay scales by merging one or two pay scales together. Is there a case for the number of pay scales/ pay band to be rationalized and if so in what manner?

4.5 Is the “grade pay” concept working? If not, what are your alternative suggestions?

5. Increment

5.1 Whether the present system of annual increment on 1 st  July of every year uniformly in case of all employees has served its purpose or not? Whether any changes are required?

5.2 What should be the reasonable quantum of annual increment?

5.3 Whether there should be a provision of variable increments at a rate higher than the normal annual increment in case of high achievers? If so, what should be transparent and objective parameters to assess high achievement, which could be uniformly applied across Central Government?

5.4 Under the MACP scheme three financial up-gradations are allowed on completion of 10, 20, 30 years of regular service, counted from the direct entry grade. What are the strengths and weaknesses of the scheme? Is there a perception that a scheme of this nature, in some Departments, actually incentivizes people who do not wish to take the more arduous route of qualifying departmental examinations/ or those obtaining professional degrees?

6. Performance

What kind of incentives would you suggest to recognize and reward good performance?

7. Impact on other organizations

Salary structures in the Central and State Governments are broadly similar. The recommendations of the Pay Commission are likely to lead to similar demands from employees of State Governments, municipal bodies, panchayati raj institutions & autonomous institutions. To what extent should their paying capacity be considered in devising a reasonable remuneration package for Central Govt. employees?

8. Defence Forces

8.1 What should be the considerations for fixing salary in case of Defence personnel and in what manner does the parity with civil services need to be evolved, keeping in view their respective job profiles?

8.2 In what manner should the concessions and facilities, both in cash and kind, be taken into account for determining salary structure in case of Defence Forces personnel.

8.3 As per the November 2008 orders of the Ministry of Defence, there are a total of 45 types of allowances for Personnel Below Officer Rank and 39 types of allowances for Officers. Does a case exist for rationalization/ streamlining of the current variety of allowances?

8.4 What are the options available for addressing the increasing expenditure on defence pensions?

8.5 As a measure of special recognition, is there a case to review the present benefits provided to war widows?

8.6 As a measure of special recognition, is there a case to review the present benefits provided to disabled soldiers, commensurate to the nature of their disability?

9. Allowances

9.1 Whether the existing allowances need to be retained or rationalized in such a manner as to ensure that salary structure takes care not only of the job profile but the situational factors as well, so that the number of allowances could be at a realistic level?

9.2 What should be the principles to determine payment of House Rent Allowance?

10. Pension

10.1 The retirement benefits of all Central Government employees appointed on or after 1.1.2004 a re covered by the New Pension Scheme (NPS). What has been the experience of the NPS in the last decade?

10.2 As far as pre-1.1.2004 appointees are concerned, what should be the principles that govern the structure of pension and other retirement benefits?

11. Strengthening the public governance system

11.1 The 6th CPC recommended upgrading the skills of the Group D employees and placing them in Group C over a period of time. What has been the experience in this regard?

11.2 In what way can Central Government organizations functioning be improved to make them more efficient, accountable and responsible? Please give specific suggestions with respect to:

 a) Rationalisation of staff strength and more productive deployment of available staff;  

b) Rationalisation of processes and reduction of paper work; and c) Economy in expenditure.

12. Training/ building competence

12.1 How would you interpret the concept of “competency based framework”?

12.2 One of the terms of reference suggests that the Commission recommend appropriate training and capacity building through a competency based framework.

a) Is the present level of training at various stages of a person's career considered adequate? Are there gaps that need to be filled, and if so, where?
b) Should it be made compulsory that each civil service officer should in his career span acquire a professional qualification? If so, can the nature of the study, time intervals and the Institution(s) whose qualification are acceptable, all be stipulated?
c) What other indicators can best measure training and capacity building for personnel in your organization? Please suggest ways through which capacity building can be further strengthened?

13. Outsourcing

13.1 What has been the experience of outsourcing at various levels of Government and is there a case for streamlining it?

13.2 Is there a clear identification of jobs that can be outsourced?

14. Regulatory Bodies

14.1 Kindly list out the Regulators set up unde r Acts of Parliament, related to your Ministry/ Department. The total number of personnel on rolls (Chairperson and members + support personnel) may be indicated.

14.2 Regulators that may not qualify in terms of being set up under Acts of Parliament but perform regulatory functions may also be listed. The scale of pay for Chairperson /Members and other personnel of such bodies may be indicated.

14.3 Across the Government there are a host of Regulatory bodies set up for various purposes. What are your suggestions regarding emoluments structure for Regulatory bodies?

15. Payment of Bonus

One of the terms of reference of the 7th Pay Commission is to examine the existing schemes of payment of bonus. What are your suggestions and observations in this regard?

Source: http://7cpc.india.gov.in/7cpc_questionnaire.pdf

Monday, April 21, 2014


Readers must be aware decision to constitute 7th Pay Commission was taken by Government in the month of September 2013. And in the month of February 2014 Prime Minister approved the formation of 7th pay commission. In the same month, Chariman of 7th Pay Commission and other members were appointed.
At the end of February 2014, terms of reference was approved by Cabinet and later in the month of March 2014 7th pay commission terms of reference was notified by Government.

As per the news item reported in Indian Express, 7th Pay commission is yet to be allotted with an office space. It was also reported that since there is no adequate space available at Delhi Ministry of Urban Development could allot required office space to 7th Pay Commission. Presently, the Chairman of 7th Pay Commission has requested Government to issued Non-Availability Certificate so that Commission can look for a private property to accomodate the office of 7th Pay Commission

Source : http://indianexpress.com/

DA from Jan, 2014 @ 100% to Gramin Dak Sevaks: DoP Order

 No. 14-01/2011-PAP
Government of India
Ministry of Communication & IT
Department of Posts
(Establishment Division)/P.A.P. Section
Dak Bhawan, Sansad Marg, New Delhi — 110 001.
Dated 16th April, 2014.
All Chief Postmaster General
All G.Ms. (PAF)/Directors of Accounts (Posts).

Subject: Payment of Dearness Allowance to Gramin Dak Sevaks (GDS) at revised rates w.e.f. 01.01.2014 onwards — reg.

Consequent upon grant of another installment of Dearness Allowance, with effect from 1st January, 2014 to the Central Government Employees vide Government of India, Ministry of Finance, Department of Expenditure's O.M. No. 1/1/2014-E-I1 (B) dated27.03.2014, duly endorsed vide this Department's letter No. 8-1/2012-PAP (Pt.) dated 28.3.2014, the Gramin Dak Sevaks (GDS) have also become entitled to the payment of Dearness Allowances on basic TRCA at the revised rate with effect from 01.01.2014. It has, therefore, been decided that the Dearness Allowance payable to the Gramin Dak Sevaks shall be enhanced from the existing rate of 90% to 100% on the basic Time Related Continuity Allowance, with effect from the 1st January, 2014.

2.    The additional installment of Dearness Allowance payable under this order shall be paid in cash to all Gramin Dak Sevaks.

3.    The expenditure on this account shall be debited to the Head "Salaries" under the relevant head of account and should be met from the sanctioned grant.

4.    This issues with the concurrence of Integrated Finance Wing vide their Diary No98/FA/2014-CS dated 16/04/2014.

(Shankar Prasad)
Assistant Director General (Estt.)
Source: http://nfpe.blogspot.in/

Central Government women employees can get 730 days leave for child care: Supreme Court

The Supreme Court on Tuesday held that a woman employee of central government can get uninterrupted leave for two years for child care, which also includes needs like examination and sickness. A bench of justices SJ Mukhopadhaya and V Gopala Gowda set aside the order of Calcutta High Court which had held that Central Civil Services (Leave) Rules do not permit uninterrupted CCL(Child Care Leave) for 730 days.

“On perusal of circulars and Rule 43-C, it is apparent that a woman government employee having minor children below 18 years can avail CCL for maximum period of 730 days i.e. during the entire service period for taking care of upto two children. The care of children is not for rearing the smaller child but also to look after any of their needs like examination, sickness etc,” the bench said.

It said that CCL even beyond 730 days can be granted by combining other leave if due and the finding of the High Court was based neither on Rule 43-C nor on guidelines issued by the central government. The court passed the order on a petition filed by a woman government employee Kakali Ghosh challenging government’s decision not to grant her leave of 730 for preparing her son for secondary/senior examinations.
She had first approached Central Administrative Tribunal Calcutta for getting leave. The tribunal had ordered in her favour but the High Court reversed the order after which she moved the apex court.

The apex court set aside the High Court’s order. “We set aside the impugned judgement dated September 18, 2012 passed by the Division Bench of Calcutta High Court, Circuit Bench at Port Blair and affirm the judgement and order dated April 30, 2012 passed by the Tribunal with a direction to the respondents to comply with the directions issued by the Tribunal within three months from the date of receipt/ production of this judgement,” it said.

Source: http://ibnlive.in.com/news/government-women-employees-can-get-twoyear-leave-for-child-care-sc/465435-3.html

7th Pay Commission Report and the Need for Timeliness

Background of the 7th Pay Commission

The 7th pay commission report - when is it going to be submitted?

The announcement about the 7th pay commission report came out on September the 25th of 2013. This pay commission unlike the 6th pay commission was set up well in advance. This became possible due to significant efforts of various organisations, union lists and the finance commission report. Announcements say that the 7th pay commission will be implemented from 1.1.2016 and it will take approximately 18 months time for the report to be submitted.
Recently, the 7th pay commission Chairman and the members gave out a public statement on 4.2.2014 and after that on 22.2.2014 the important 7th cpc terms and references were released. Now, the thought that floats on everyone’s mind is whether the 7th pay commission report will be submitted within the 18 months time period and will the employees be able to get the benefits along with their salary from 1.1.2016.
Recently, in the Lok Shaba during the question and answer session, it was pointed out that no specific time limit can be specified as of now for the implementation of the 7th pay commission. However, the finance ministry is now recruiting people for the 7th pay commission pay cell on deputation basis. This is a good attempt which boosts our confidence in the fact that the 7th pay commission will be put into effect on time.

Reports of the Earlier Pay Commissions
If the employees get the benefits of the 7th pay commission along with our salary on 1.1.2016, then, this will be the first time we are given the pay commission benefits without arrears. I am providing a link containing reports about when the previous pay commissions were set and when they were implemented.
Pay Commission
Date of Appointment
Date of submission of report
Financial impact (Rs. In crores)
First Pay CommissionMay, 1946May, 1947N.A1 YEAR
Second Pay CommissionAugust, 1957August, 195939.622 YEARS
Third Pay CommissionApril, 1970March, 1973144.603 YEARS (aprx)
Fourth Pay CommissionJune, 19833 reports submitted in June, 1986; Dec. 1986 and May, 198712824 YEARS(aprx)
Fifth Pay CommissionApril, 1994January, 199717,0003YEARS (aprx)
Sixth pay commissionJuly 2006March 2008
18 months

Arrears of the 6th Pay Commission :- When you see the timetable above, you can understand that none of the previous pay commissions were implemented on time and without the payment of arrears. When the 6th pay commission was implemented, the government paid a huge amount as arrears in two instalments. This impacted the economy considerably and caused changes in inflation rate and GDP. This shocking fact was revealed by the 13th finance committee report.

The Benefits of the Timely Implementation of the 7th Pay Commission :- What benefits will the employees get if the 7th pay commission is implemented on 1.1.2016? Let us have a look.

Firstly, all the allowances and benefits can be got on 1.1.2016. When the benefits are paid as arrears the employees will not get some of the allowances due to exclusion.

Secondly, the government will not have to pay a huge amount as arrears and thereby can avoid economic burden.

Thirdly, if a National Anomaly Committee is set up and the shortcomings of the 7th pay commission are corrected immediately, employees can receive the benefits easily. We have to note that several points mentioned the anomaly committee report of the 6th pay commission still remain problematic and uncorrected.

Fourthly, let us have a look at the elements of ACP and MACP. Like the ACP and MACP, the financial up gradation is going to be introduced in the 7th Pay Commission; the issues that may arise due to this have to be resolved in a timely manner so that everyone may be benefitted by it.   In the 5th pay commission, the time limit for promotion through ACP remained at 12 years, and in the 6th pay commission the time limit for promotions through MACP remained at 10 years. In the 5th pay commission, a new method of promotion through hierarchy was introduced. In the 6th pay commission promotions happened through grade pay structure.
The main aim of introducing ACP and MACP is to make sure that an employee gets minimal promotion at least thrice in his life time of service. If this is the case, the minimal service period of an employee should be at least 30 years. But presently, employees are appointed even at the age of 37 and so their service period is just 23 years. Such problems have to be carefully considered well in advance and solved before the 7th pay commission is implemented.

Let us believe that the 7th pay commission will be the first arrears-free pay commission and implemented on time as per the guidelines of the 13th finance commission.


Thursday, April 17, 2014

Did you know how the 6th CPC Multiplication Factor of 1.86 was derived?

The 6th Pay Commission had recommended a Multiplication Factor of 1.74, but the Central Government chose to change it to 1.86. One of the reasons for this modification was the intense pressure from various Federations of Central Government Employees. It has to be mentioned at this point that all the federations had presented demands to the Government to raise the minimum basic pay to Rs. 10,000.
Exactly how did the Government arrive at 1.86? Here is an explanation how -

Let us assume the Basic Pay, as of 01.01.2006, as 100%. Let’s take the Dearness pay (post the 50% DA Merger) as 50%. Let us also take into account the 24% Dearness Allowance that was given before 01.01.2006.
If you add Basic Pay and Dearness Pay and calculate 24% of it, then you’d get 36%. (100 + 50 = 150 / 24 x 100 = 36)
100% + 50% + 36% = 186%
This number is being taken for calculations as 1.86.

At the time of 6th CPC Pay Fixation, the last drawn Basic Pay under 5th CPC was multiplied by 1.86 and rounded off. It was also explained that a new entity named Grade Pay was created and a sum total of this was the new Basic Pay.

Hence, it was impossible to consider 1.86 as the true yardstick. For example, for a basic pay of Rs. 3050…
3050 x 1.86 = 5680 (After rounded off)
Corresponding Grade Pay for 3050 is 1900,
Band Pay 5680 + Grade Pay 1900 = Basic Pay 7580
5th CPC basic pay = 3050
6th CPC basic pay = 7580
The multiplication factor number comes to 2.48.

It is not possible to take 2.48 as common for all basic pays. But, 2.48 was considered very low. That’s why we have used a bigger number to calculate in the 7th CPC’s Expected Pay Scale.

Source:  http://90paisa.blogspot.in/

List of Allowances and Advances to be increased by 25% from 1.1.2011

100% D.A from January 2014 – Some Allowances and Advances Rise by 25%

The Fifth Central Pay Commission had recommended uniform neutralization of DA at 100% to employees at all levels and increase in DA calculation too, according to the 12 monthly average of AICPIN for Industrial Workers (1982=100) as on 1st January 1996, of 306.33.

The Linking Factor of 303.33 has now changed to 115.76. This was calculated as 4.63 in the 4th CPC.
It was due to this change that the Dearness Allowance has increased in recent years. The 6th Pay Commission had promptly calculated it and said that the true impact of price rise and inflation would only then be known.

It was also mentioned in the recommendations made by the 6th CPC that each time the Dearness Allowance touched 50%, certain Allowances and Advances should also be raised by 25%.
It is of common knowledge that according to these recommendations, when D.A touched 50% on 01.01.2011, DOPT issued orders to increase it by 25%.

Since the DA is calculated on the basis of price rise and inflation, this 25% raise was given in order to make it uniformly applicable to all the other Allowances and Advances. The Allowances and Advances mentioned in this are the Children’s Education Allowance and Hostel Subsidy and Festival Advance.

As of now, the Central Government employee is entitled to claim 15,000 per annum per child under the Children’s Education Allowance and Hostel Subsidy. An increase of 25% would mean that the amount would rise to Rs. 18,750 per year. Similarly, there are chances that the Festival Advance would increase to Rs. 4700. These could be confirmed only after the DOPT makes its official announcements.

The list mentioned below is explanatory and given in detail, along with explanations.

S.No.Name of the Allowances & AdvancesExistingRevised
1.Children Education Assistance & Reimbursement of Tuition FeeRs.12,000
(Per Year – Per Child)
(Per Year – Per Child)
2.Advances for purchase of Bicycle Advance, Warm clothing Advance,
Festival Advance, Natural Calamity Advance
3.Special Compensatory Hill Area AllowanceRs.600 / Rs.480Rs.750 / Rs.600
4.Special Compensatory Scheduled / Tribal Area AllowanceRs.400 / Rs.240Rs.500 / Rs.300
5.Project AllowanceRs.1,500 / Rs.1,000Rs.1,875 / Rs.1,250
6.Speical Compensatory (Remote Locality) AllowanceRs.2,600 / Rs.2,100/ Rs.1,500 / Rs.400Rs.3,250 / Rs.2,625/ Rs.1,875 / Rs.500
7.Cycle Maintenance AllowanceRs.60 (Per month)Rs.75 (Per month)
8.Mileage for road journey all components of daily allowance on tourRs.500 / Rs.300 / Rs.200 / Rs.150 / Rs.100Rs.625 / Rs.375 / Rs.250 / Rs.190 / Rs.125
9.Rates of Fixed Conveyance Allowance under SR-25 (Motor Car)Rs.1,120 / Rs.1,680 / Rs.2,070 / Rs.2,430 / Rs.3,000Rs.1,400 / Rs.2,100 / Rs.2,590 / Rs.3,040 / Rs.3,750
10.Rates of Fixed Conveyance Allowance under SR-25 (Other modes)Rs.370 / Rs.480 / Rs.640 / Rs.750 / Rs.850Rs.470 / Rs.600 / Rs.800 / Rs.940 / Rs.1,070
11.Washing AllowanceRs.60Rs.75
12.Split Duty AllowanceRs.200Rs.250
13.Spl. Allowance for Child Care for Women with Disabilities and
Education Allowance for disabled children
Rs.1,000 per monthRs.1,250 per month
14.Cash Handling AllowanceRs.600 / Rs.500 / Rs.400 / Rs.300 / Rs.150Rs.750 / Rs.625 / Rs.500 / Rs.375 / Rs.190
15.Risk AllowanceDOPT
16.Postgraduate AllowanceRs.1,000 / Rs.600Rs.1,250 / Rs.750
17.Desk AllowanceRs.600Rs.750
18.Bad Climate AllowanceRs.400 / Rs.240Rs.500 / Rs.300
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