Sunday, December 13, 2015

7th pay panel report under Govt consideration, employees demand re-look

 A body of central government employees has demanded a re-look at the Seventh Central Pay Commission (CPC) report and sought a rationalised pay structure.

In a memorandum submitted to Union Minister Jitendra Singh, the Government Employees' National Federation said that while there are some positive recommendations in the 7th CPC report, there are, at the same time, several instances which need a relook.

Thus, the memorandum said, the exercise to rationalise pay structure has led to several discrepancies. It further complained that the concept of grade pay and pay band has been done away with and all grades of pay at all levels have been subsumed within the pay matrix.

Singh, the Minister of State for Personnel, said that the report submitted last month is under the government's consideration and the follow-up on it would be done after the inputs have been received from the Finance Ministry and other relevant quarters.

He said that even though opinion may vary, there is a large section of employees which has hailed the report, including its recommendation of 16 per cent hike in salary along with a 63 per cent increase in allowances and 24 per cent hike in pension, with minimum Basic Pay of Rs 18,000 and maximum pay of Rs 2.25 lakh for central government staff.

Singh recalled that, while accepting the report, Finance Minister Arun Jaitley had disclosed that an implementation secretariat headed by the Expenditure Secretary had been created while a separate empowered committee under the Cabinet Secretary will take a view on suggestions received from various stakeholders.

"There is, therefore, enough reason to believe that all the concerns and apprehensions, if any, expressed by the employees will be taken care of by the government," the minister said.

Source : PTI

4 comments :

S.Lakshman Rao said...

2.81% minus 2.57% is equal to 0.24% is the variation.If this portion is rectified,uniformity will be well with in reach.More so no one as of now is seeking the reasons for not maintaining the 2.86% as the fitment formula.It will be better the pay scales are adopted by !!! Appointing Authorities!!! concerned.The best available option...

S.Lakshman Rao said...

The committee which has been formed to take care of the issues,can still consider the variation, with a view to have uniformity during implementation stage,for which, central government notification is the required source document at appropriate time.More so the central government has implemented the earlier pay commissions on the basi of central government notifications only.

Ranson Gomez said...

7 CPC has done proper justice to all central govt. employees by giving an increase of 32% to 56% for the lower ranked person to the secretary level officer. (2.57 - 2.25 + 32% for lowest rank and 2.81 - 2.25 + 56% for the secretary level officer). During 6 CPC the new pay scale was arrived at by giving 1.86 multiple factor whereas it is now 2.57. DA as on 1.1.2006 was nil. Similarly DA as on 1.1.2016 will also be nil.

The true picture of the 7 CPC recommendations are as given below:-

1.Dearness Allowance - The quantum of D.A. amount receivable on account of revision of pay scale will be much higher as the DA calculation formula has not been changed.

2.House Rent Allowance - Though the varying rates of HRA have been reduced from 30%,20%,10% to 24%,16%,8% respectively it is no way going to put the employees in any state of disadvantage. For example a person with 7000 salary(B.P. + G.P) in the existing scale will get 2100 HRA @30% and the same person in the changed scenario will get 4320 (18000 @ 24% = 4320). It can be seen that new HRA is more than double the amount. Therefore I am not able to understand the further demands of the employees on the subject.

3.Transportation Allowances - The rates have been doubled

4.Annual increment - I think retaining 3% increment is okay because employees are going to get the benefit on the revised scale which is minimum of 2.57 times higher than the existing scale.
Children education allowance/Hostel subsidy - Hike by 25% to Rs. 2250

5.Child care leave - Recommended for single male parent also. A total of 730 days permitted with 80% salary which is a welcome step by 7 CPC for the benefit of the employees.

6.House building advance - Enhance from 7.5 lakhs to 25 lakhs which is an excellent recommendation
7.Group Insurane scheme - Group Insurance Limit has been enhanced to 50, 25, and 15 lakhs. This will provide great financial support to the bereaved family in case of death in harness. This recommendation is in the right direction for providing financial help to the family
8. Retirement Benefits - (a) Employees will get better pension. (b) The gratuity limit has been doubled. Here one can argue that it is going to benefit only senior officers and I think the argument is not out of placed. (c)Because of hike in pay scale all employees will get handsome amount on account of commutation of pension at the time of retirement. (d) Leave encashment - The quantum of amount of leave encashment will also be higher on account of revision of pay. There will 60 to 65% increase in the overall take home retirement benefits.

There are some flaws in the 7 CPC. While comparing the benefits the flaws are not that much alarming. Only one problem that needs to be addressed is the fixation formula recommended on promotion from one rank to the higher rank. 7 CPC has recommended only 3% increase which leads to lower financial benefits than the existing benefits. Therefore the percentage of increase on promotion is to be hiked to at least 5% to derive some monetary benefit on promotion.

Except for the flaw on fixation of pay on promotion which needs to corrected, the overall recommendation of 7 CPC are beneficial to the employees and therefore there should not be any sort agitation on the recommendations. This is my personal views

Ranson Gomez said...

The recommendations of 7 CPC are excellent and justified. They have recommended an increase of 32% to 56% for the lower ranked person to the secretary level officer respectively (2.57 - 2.25 = 32% for lowest rank and 2.81 - 2.25 = 56% for the secretary level officer). During 6 CPC the new pay scale was arrived at by giving 1.86 multiple factor whereas it is now 2.57. DA as on 1.1.2006 was nil. Similarly DA as on 1.1.2016 will also be nil.

The salient features of the 7 CPC recommendations are as given below:-

1.Dearness Allowance - The quantum of D.A. amount receivable on account of revision of pay scale will be much higher as the DA calculation formula has not been changed.

2.House Rent Allowance - Though the varying rates of HRA have been reduced from 30%,20%,10% to 24%,16%,8% respectively it is no way going to put the employees in any state of disadvantage. For example a person with 7000 salary(B.P. + G.P) in the existing scale will get 2100 HRA @30% and the same person in the changed scenario will get 4320 (18000 @ 24% = 4320). It can be seen that new HRA is more than double the amount. Therefore I am not able to understand the further demands of the employees on the subject.

3.Transportation Allowances - The rates have been doubled

4.Annual increment - I think retaining 3% increment is okay because employees are going to get the benefit on the revised scale which is minimum of 2.57 times higher than the existing scale.
Children education allowance/Hostel subsidy - Hike by 25% to Rs. 2250

5.Child care leave - Recommended for single male parent also. A total of 730 days permitted with 80% salary which is a welcome step by 7 CPC for the benefit of the employees.

6.House building advance - Enhance from 7.5 lakhs to 25 lakhs which is an excellent recommendation
7.Group Insurane scheme - Group Insurance Limit has been enhanced to 50, 25, and 15 lakhs. This will provide great financial support to the bereaved family in case of death in harness. This recommendation is in the right direction for providing financial help to the family
8. Retirement Benefits - (a) Employees will get better pension. (b) The gratuity limit has been doubled. Here one can argue that it is going to benefit only senior officers and I think the argument is not out of placed. (c)Because of hike in pay scale all employees will get handsome amount on account of commutation of pension at the time of retirement. (d) Leave encashment - The quantum of amount of leave encashment will also be higher on account of revision of pay. There will 60 to 65% increase in the overall take home retirement benefits.

There are some flaws in the 7 CPC. While comparing the benefits the flaws are not that much alarming. Only one problem that needs to be addressed is the fixation formula recommended on promotion from one rank to the higher rank. 7 CPC has recommended only 3% increase which leads to lower financial benefits than the existing benefits. Therefore the percentage of increase on promotion is to be hiked to at least 5% to derive some monetary benefit on promotion.

Except for the flaw on fixation of pay on promotion which needs to corrected, the overall recommendation of 7 CPC are beneficial to the employees and therefore there should not be any sort agitation on the recommendations. This is my personal views

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