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Saturday, 28 November 2015

Uniform Fitment Factor recommended by 7th Pay Commission

Uniform Fitment Factor recommended by 7th Pay Commission
The existing PB-1, this index is 2.57, increasing to 2.62 for personnel in PB-2 and further to 2.67 from PB-3. The rationalised entry pay so arrived has been used in devising the new pay matrix.
The 7th Pay Commission recommended uniform fitment factor for all group of Central Government employees. The commission says that the fitment recommended by the VI CPC was in the form of grade pay. Any inconsistency in the computation of grade pay or in the spacing between pay bands has a direct bearing on the quantum of fitment benefit. Therefore, these issues have also been raised by numerous stakeholders. It has been demanded by a majority of the stakeholders that there should be a single fitment factor which should be uniformly applied for all employees.
The 6th CPC had mentioned that grade pay would be equivalent to 40 percent of the maximum of the pre-revised scale and that the grade pay will constitute the actual fitment, yet the computation varied greatly. After the implementation of recommendations, the difference became more pronounced in Pay Band 4 as compared to the other three pay bands. This resulted in varying fitment factors for various levels and promotional benefits that were perceived to be rather differentiated. The same pattern was discernible in the pension fixation too.
And also explained in its report that the starting point for the first level of the matrix has been set at Rs.18,000. This corresponds to the starting pay of Rs.7,000, which is the beginning of PB-1 viz., Rs.5,200 + GP1800, which prevailed on 01.01.2006, the date of implementation of the VI CPC recommendations. Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. 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 of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent.
Finally, 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.
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7th Pay Commission Report : More flaws than plus points

7th Pay Commission Report : More flaws than plus points

7th-Pay-Commission-Report-More-flaws-than-plus-points

The much-awaited 7th Pay Commission report was submitted to the government last Thursday. The 900-page long report was perused swiftly within a day or two and criticisms have already started coming.
The very next day of submitting the report, M. Krishnan, the Confederation Secretary, gave a scathing criticism. “No other Pay Commission had submitted such a terrible report,” he said. At the very beginning of the press release, he had mentioned that the backward mindset of the recommendations of the Pay Commission have been a huge disappointment for the Central Government employees.

Contrary to all the wild speculations, a raise of only 14.29 percent was finally given to the Central Government employees. This increment is akin to two installments of the Dearness Allowance. He has strongly stated that more than 50 lakh Central Government employees and Defence Personnel have been cheated.

The 6th Pay Commission recommended 10 percent, 20 percent, and 30 percent House Rent Allowance for ten years starting from 01.01.2006. The intention behind reducing it to 24 percent, 16 percent and eight percent was not explained. Despite being very well aware of the fact that the recommendations will be in effect until 2026, the fact that the Pay Commission had tried to reduce the allocation has left the Central Government employees greatly disappointed.

MACP Promotions: Among the biggest disappointments of the 7th Pay Commission report is the fact that promotions, which are given once every ten years, so not earn any substantial benefits for the employees. They stand to gain only 3 percent hike. Another painful observation is the fact that the gap between Grade Pay 2800 and 4200 has been completely reduced.

The next big disappointment is the method of calculating the dearness allowance. This was one of the much-anticipated parts of the report. There is no clear explanation as to the reason why changes had to be made in the CPI IW BY 2001=100 method, or the 115.76 Factor.

On top of it all, the commission has introduced a new “Pay Matrix.” Our expectations of a detailed explanation about it were never fulfilled. 3 percent of the amount has been rounded off and given for each CELL.

In short, the 7th Pay Commission report is on the receiving end of lot of criticism. Central Government employees are now hoping that the Centre would intervene and do something positive for them.

Source: www.cgstaffportal.in
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