An analysis of extending the term of 7th Pay Commission – GServants

An analysis of extending the term of 7th Pay Commission – GServants

Pros and Cons of extending the term of 7th Pay Commission

Recently the central government announced the extension of term of 7th pay commission by four months till 31st December 2015. By the time there were news started coming about seventh Pay Commission that it would ask one month extension to submit the report, Unexpectedly the central government itself granted four month extension to 7th central pay commission in its Cabinet Meeting held on 26th August 2015

One day before the announcement made by central government on granting extension to the pay commission, according to PTI news report, Justice A.K.Mathur, Chairman, 7th Pay Commission, said that by the end of September 2015 the Pay commission report would be submitted to the government.

Why the central government granted four month extension when the commission itself if asked one month time?

What will happen if the 7th pay commission submits its reports on 31st December 2015?

Before to answer that, It will be very useful to know that what happened in sixth pay commission, after submission of report and how much time it took to get announced the implementation of pay commission recommendation.

• The Sixth Central Pay commission was set up by Union Cabinet of India on 5th October 2006. The Commission, headed by Justice B.N.Srikrishna.The Other members of the commission were Prof. Ravindra Dholakia, Mr. J.S.Mathur and Member-Secretary Ms Sushama Nath, IAS.
• The Pay Commission submitted its report to Finance Minister P. Chidambaram on 24 March 2008.
• The United Progressive Alliance (UPA) Government headed by Manmohan Singh, approved the Sixth Pay commission recommendations with some modifications. In the cabinet meeting held on 14th August 2008, the Union Cabinet headed by Manmohan Singh gave its approval for implementation of the recommendations of the Sixth Central Pay Commission.
• It was announced that the revised pay scales will come into effect from 1/1/2006 and revised rates of allowances from 1/9/2008.
  The Gazette Notification for implementation of sixth pay commission published on 29th August, 2008.

From the above reference it is known that after submission of report it will take six month time to get its approval from Central Government for implementation of pay commission recommendation.

The decision of extending the term of seventh pay commission could be a major blow to central government employees by the way as follows

1. The 7th pay commission has been made to submit its report on 31st December 2015. The stipulated time is extended as 22 Months instead of 18 months for 7th pay commission to submit its report

2. As the central government would like to ground upon the Precedents and it will take six month time from the date of submission of report to announce its approval for implementation of 7th pay commission recommendations

3. So the Cabinet approval for implementation of 7th pay commission recommendation will be granted by the Month of June 2016

4. Only the Revised Pay Scale will come into effect from 1.1.2016

5. The revised rate of allowances will come into effect from prospective date that is with effect from the day of Order is issued.

6. So the central Government employees will be losing the benefit of revised rate of allowances for the period of six months , which they supposed to get from 1.1.2016, provided the order for implementation of 7th pay commission will be issued on 1.7.2016.

Source: www.gservants.com

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Four Month Extension to central government employees 7th pay commission – Finmin issued Notification

4 Month Extension to 7th Pay Commission – Finmin issued Notification

Department of Expenditure has issued resolution for amending para 5 of the earlier resolution issued on 28.2.2014…

भारत का राजपत्र
The Gazette of India
असाधारण
EXTRAORDINARY
भाग I-खण्ड-I
PART I—Section 1
प्राधिकार से प्रकाशित
PUBLISHED BY AUTHORITY

सं0- 235]

नई दिल्ली, बुधवार, सितम्बर 9, 2015/भाद्र 18, 1937

No. 235]

NEW DELHI, WEDNESDAY, SEPTEMBER 9, 2015/BHADRA 18, 1937

व‍ित्त मंत्रालय
(व्यय विभाग)
संकल्प

नई दिल्ली‍, 8 सितम्‍बर, 2015

सं.1/1/2013-ई. III(क).—भारत सरकार ने यह निर्णय लिया है कि इस मंत्रालय के दिनांक 28.02.2014 के संकल्प‍ सं. 1/1/2013-ई.III(क) का पैरा 5 निम्न प्रकार से संशोध‍ित क‍िया जाएगा:—

“आयोग अपनी सिफारिश 31 दिसम्‍बर, 2015 तक प्रस्तुत करेगा। आयोग, यद‍ि आवश्य‍क हो, सिफार‍िशों को अंतिम रूप दे द‍िए जाने पर कसी भी मामले म र‍िपोर्ट भेजने पर विचार कर सकता है।”

रतन पी. वातल, वित्त सच‍िव

MINISTRY OF FINANCE
(Department of Expenditure)

RESOLUTION
New Delhi, the 8th September, 2015

No. 1/1/2013-E. III(A).—The Government of India have decided that the Para 5 of this Ministry’s Resolution No. 1/1/2013-E.III(A) dated 28.2.2014 shall be modified as under :—

“The Commission will make its recommendations by 31st December, 2015. It may consider, if necessary, sending reports on any of the matters as and when the recommendations are finalized.”

RATAN P. WATAL, Finance Secy.

Click to view the Gazette Notification
Click to view the report of Cabinet approval

Authority: http://egazette.nic.in/
Courtesy: http://www.staffnews.in/

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Four Month Extension of Term of 7th Central Pay Commission

Four Month Extension of Term of 7th Central Pay Commission

Extension of the term of the 7th Central Pay Commission

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for the extension of the term of the 7th Central Pay Commission by four months up to 31.12.2015.

The 7th Central Pay Commission was constituted by the Central Government on 28.2.2014. 
According to the Resolution dated 28.2.2014, by which the Commission was constituted, it is to make its recommendations within 18 months of the date of its constitution that is by 27th August, 2015.

In view of its volume of work and intensive stake-holders’ consultations, the 7th Central Pay Commission had made a request to the Government for a four month extension up to 31.12.2015

Source: centralgovernmentnews.com

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7th Pay Commission proposes to visit Leh / Srinagar between 15th to 18th September 2014

7th Pay Commission proposes to visit Leh / Srinagar between 15th to 18th September 2014

Visit of the 7th CPC to Leh/Srinagar

The Commission has, in its first phase of interaction, been seeking the views of various stakeholders on its terms of reference. To this end, meetings have been held in Delhi with various organisations and heads of various agencies.

In its second phase of interaction, the Commission plans to hold meetings in different parts of the country to facilitate stakeholders staying in various areas to present their views personally before the Commission and ensure larger representation. This exercise is being undertaken to enable the Commission to get a firsthand impression about the functioning and the condition of service prevailing in different parts of the country.

Accordingly, the Commission, headed by its Chairman, Justice Shri A. K. Mathur, proposes to visit Leh/Srinagar between 15th September to 18th September, 2014. The Commission would like to invite various entities/associations/federations representing any/all categories of employees covered by the terms of Reference of the Commission to present their views.

Your request for a meeting with the Commission may be sent through e-mail to the Secretary, 7th Central Pay Commission at secy-7cpc@nic.in The memorandum already submitted by the requesting entity may also be sent as an attachment with this e-mail.

The last date for receiving request for meeting is 5th September, 2014 (1700 hours).

#7th Central Pay Commission, #7th CPC Meeting, #7th CPC Terms of Reference, #7CPC, #7th Pay Commission,

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State Government employees are not covered within the terms of reference of the 7th central Pay Commission

State Government employees are not covered within the terms of reference of the 7th central Pay Commission

While answering to a question in Parliament on 12th August 2014 regarding the employees working in State Government, Ministry of State for Finance Smt.Nirmala Sitharaman said that the State Government employees are not covered within the terms of reference of the 7th central Pay Commission.

She replied in written form to a question asked by a member that service conditions of State Government employees fall within the exclusive domain of respective State Governments. Therefore, State Government employees are not covered within the terms of reference of the 7th central Pay Commission.
Thus, the recommendations of Commission will not directly apply to State Government employees.

Accordingly, it is not possible for the Central Government to indicate the financial burden on State Governments, if they decide to adopt the recommendation of the 7th Central Pay Commission in respect of their employees with or without modification.

She also added, the Central Government had sought the views of the State Governments and till the date of the constitution of the 7th Central Pay Commission on 28.2.2014, only 14 States had responded. These State Governments generally mentioned, inter-alia, that adoption of the recommendations of a Central Pay Commission by them in case of State Government employees adds to substantial financial burden

Since the decision to adopt the recommendations of the 7th Central Pay Commission in case of the State Government employees will exclusively concern respective State Government, the question of any assistance by the Central Government will not arise. However, the Terms of Reference of the 7th Central Pay Commission provide, inter-alia, that while making its recommendations, the Commission will also keep in view the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications.

Source: www.cgstaffnews.in
#7th CPC, #7th CPC Pay Structure, #7th CPC ToR, #7th Pay Commission, #Date of 7th CPC, #7th Central Pay Commission, #7th CPC Terms of Reference, #State Government Employees

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Centre made a discretionary decision on 7th CPC Terms of Reference – National Council JCM

Centre made a discretionary decision on 7th CPC Terms of Reference – National Council JCM

In its foreword of the 7th CPC Memorandum prepared by the National Council JCM Staff Side, the National Council has said that the Centre has made a discretionary decision regarding the 7th CPC Terms of Reference. The writeup also adds that the Centre did not consult with them prior to formulating the Terms of Reference for the 7th Pay Commission.

The Prime Minister has given his approval to the composition of the 7th CPC on 4th February 2014 and the Union Cabinet gave its approval to the 7th CPC Terms of Reference on 28.02.2014.

On 01.01.2011, when the Dearness Allowance touched 50%, the Central Government employees started to strengthen their demand to add it to the Basic Pay. Some of them demanded setting up of the 7th CPC on the plea that the residency period of any wage structure must not exceed 5 years, especially in the background that the pay revision in most of the PSUs takes place at the interval of 5 years. The Government turned a deaf ear to them.

After implementation of pay band and grade pay, there was plethora of anomalies, common as well as department specific. None of these anomalies were removed despite several rounds of discussions. And Government refused to discuss these demands either bilaterally or at the forum of JCM

The Confederation of Central Government Employees successfully conducted a 2-day protest. Defence and Railway employees too were ready to join the protests. Just when it looked as if confrontation was imminent, in September 2013, the Centre announced the formation of the 7th Pay Commission. The protests were dropped when the Government accepted their demands.

While formulating the Terms of Reference, there was a general expectation that the Government would consider the 6-point demand that was debated upon at the Standing Council NC JCM meeting that was held on 24.10.2013.

6-point demands are…

The Commission should have a labour representative.

DA (as on 1.1.2014) to be merged and treated as pay for all purposes. 

To include Gramin Dak Sewaks within the ambit of 7th CPC.

To grant Interim Relief @ 25% of Pay + GP.

To ensure that the 7th CPC recommendation will be effective from 1.1.2014.

To ensure parity in pension for all pensioners as per the 5th CPC recommendation.

They were also hoping that another meeting would be held before the final Terms of Reference were decided. But the Government made a discretionary decision regarding and 7th CPC Terms of Reference. None of the important demands presented by the association made the final list.

In its Memorandum to the 7th Pay Commission, the National Council has presented the twin issues, i.e. the need to grant interim relief and merger of Dearness Allowance.

The 98-page long report to the 7th Pay Commission prepared by the members of National Council JCM Staff Side, incorporating all the suggestions and demands presented by all the representative of employees involved. The National Council also hopes that all Central Government employees, Associations/ Federations/Unions would accept and support the demands raised by them in the memorandum.

The Memorandum consists of expectations and requirements of common for all the Central Government employees. No doubt they will submit separate memorandum on department specific issues.

The 7th Pay Commission is bound to take note of this report and its recommendations.

Source: CGEN.in
[http://centralgovernmentemployeesnews.in/2014/07/centre-made-a-discretionary-decision-on-7th-cpc-terms-of-reference-national-council-jcm/]

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Merger of 100% DA w.e.f. 1.1.2014 and Merger of 50% DA w.e.f. 1.1.2011

Merger of 100% DA w.e.f. 1.1.2014 and Merger of 50% DA w.e.f. 1.1.2011 demanded by Confederation of Central Government Gazetted Officers’ Organisation

Central gazetted officers finalise demands

A workshop organised by the Confederation of Central Government Gazetted Officers’ Organisations, Tamil Nadu region, has finalised the common minimum demands to be placed before the 7 Central Pay Commission, including a just and equitable pay at the entry level of Group ‘B’ officers.

It was also agreed upon at the workshop here on Saturday to demand a joint consultative machinery to redress their grievances and a minimum of five promotions during their tenure — from entry to Group ‘B’ level either by promotion or direct recruitment.

The workshop for the constituents of the Confederation sought merger of 50 per cent dearness allowance for all purposes with effect from January 1, 2011 or 100 per cent DA with effect from January 1, 2014 for the serving officers. Other demands included free and hassle-free medical facilities to Group ‘B’ officers and adequate travel entitlements.

Source : www.thehindu.com
[http://www.thehindu.com/news/national/tamil-nadu/central-gazetted-officers-finalise-demands/article5490705.ece]

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Merger of 50% DA with Pay and grant of Interim Relief - NFIR

Merger of 50% DA with Pay and grant of Interim Relief - NFIR

NFIR
National Federation of Indian Railwaymen

No.II/95/Pt. VI

Dated: 20/02/2014

The General Secretaries of
Affiliated Unions of NFIR.

Brother,
Sub: Merger of 50% DA with Pay and grant of Interim Relief.

NFIR has been writing to the Government of India (including Prime Minister, Finance Minister etc) for merger of 50% DA with pay through its letters dated 10/01/2013, 05/08/2013, 27/09/2013. Also in its 27th National Convention held at Visakhapatnam from 10th  to 12th December, 2013, the Federation had passed a resolution demanding merger of 50% DA with Pay and grant of interim relief to employees of Central Government including Railway employees.

NFIR feels happy to convey that the Central Government has conceded the demand of the employees raised by the Federation.

Union Cabinet is likely to consider the issues to day for taking final decision. Federation will advise decision when taken by the Government. Federation expects that there may be Good News for all Central Government employees very soon.

Yours faithfully,
sd/-
(M.Raghavaiah)
General Secretary

Source: NFIR

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Cabinet likely to approve 7th CPC ToR : Inclusion of DA Merger and Interim Relief in 7th CPC ToR

Cabinet likely to approve 7th CPC ToR : Inclusion of DA Merger and Interim Relief in 7th CPC ToR

Inclusion of DA Merger and Interim Relief in 7th CPC Terms of Reference – Union Cabinet likely to approve the 7th CPC Terms of Refernce in the next meeting, media sources said.

“To woo central government employees ahead of the general elections, the United Progressive Alliance (UPA) government is expected to ask the Seventh Pay Commission to consider merging 50 per cent dearness allowance (DA) with basic pay of employees.
This will form part of the terms of reference (ToR) for the Commission, to be considered by the Cabinet this week.

According to officials, the Pay Commission’s ToR categorically states a proposal in this regard should be actively considered.

The increases will be even more appealing as the Centre is expected to increase the DA by 10 per cent to 100 per cent by the end of February. Usually, the DA is merged with basic pay when the former goes beyond 50 per cent. It is 90 per cent now, but has not been merged so far.

Assuming an employee gets Rs 100 as basic pay and Rs 100 as DA at present, the basic will rise to Rs 150, even if 50 per cent allowance is merged. . A higher basic pay will also impact the house rent allowance (HRA) of employees as it is calculated at 30 per cent of the basic pay for central government employees.
DA is linked to the consumer price index (industrial workers). The government uses CPI-IW data of the past 12 months to arrive at a quantum for calculating any DA hike. The allowance will be announced from January. As such, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter. The average inflation during this period had stood at 10.66 per cent.

Earlier this month, the government had constituted the Pay Commission under the chairmanship of former Supreme Court Judge Ashok Kumar Mathur.

The other members of the panel are Petroleum Secretary Vivek Rae (full-time member), National Institute of Public Finance and Policy Director Rathin Roy (part-time member) and Officer on Special Duty in the Expenditure Department Meena Agarwal (Secretary).

The Commission’s recommendations would be implemented from January 1, 2016, officials said. However, it may recommend interim relief as well, they added.

The Commission’s recommendations will directly benefit almost five million employees and three million pensioners. Employees of state governments, which will adopt the recommendations of the 7th Pay Commission will also benefit.

Some officials said the Cabinet is also expected to consider another proposal to modify the Prime Minister’s 15-point programme for minorities, which will enable allocation of at least 15 per cent of the total funds for welfare of minorities in major programmes such as National Rural Health Mission, Rashtriya Mahila Shiksha Abhiyan, Employment and Skill Development”.

Source: www.business-standard.com
http://www.business-standard.com/article/economy-policy/centre-plans-big-bonanza-for-central-govt-employees-114021901256_1.html]

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Terms of Reference of the 7th Pay Commission by Bharatiya Pratiraksha Mazdoor Sangh

Terms of Reference of the 7th Pay Commission by Bharatiya Pratiraksha Mazdoor Sangh

BHARATIYA PRATIRAKSHA MAZDOOR SANGH
(AN ALL INDIA FEDERATION OF DEFENCE WORKERS)
(AN INDUSTRIAL UNIT OF B.M.S.)
(RECOGNISED BY MINISTRY OF DEFENCE, GOVT. OF INDIA)

REF: BPMS / DoP&T / 7th CPC / 250 (6/1/M)

Dated: 31.10.2013

To,
The Secretary (JCA),
Govt of India, Min of Pers, PG & Pensions,
Department of Personnel & Training,
North Block, New Delhi – 110001

Subject: Terms of Reference of the 7th Pay Commission

Reference: Your letter No. 16/15/2012-JCA, dated 30.09.2013

Respected Sir,

 With due regards, your attention is invited to the letter cited under reference whereby suggestions of the Staff Side on the subject matter have asked for. Hence, according to this federation the terms of reference of the 7th CPC should be as under:-

A. To examine the principles that should govern the structure of pay, allowances and other facilities/benefits whether in cash or in kqind to the following categories of employees:-

1. Central Government employees – industrial and non-industrial.
2. Personnel belonging to the All India Services.
3. Personnel belonging to the Defence Forces.
4. Personnel of the Union Territories.
5. Officers and employees of the Indian Audit and Accounts Department; and
6. Members of the regulatory bodies (excluding the RBI) set up under Acts of Parliament.

B. To define and implement the concept of a “Living Wage” to cover all categories of employees in Central Government Organisations.

C. To examine, define and rationalise the concept of minimum and maximum pay amongst categories of employees.

D. To work out a comprehensive pay package for the categories of Central Government employees mentioned at (A) above that is suitably linked to promoting efficiency, productivity and economy through rationalization of structures, organizations, systems and processes within the Government, with a view to leveraging economy, accountability, responsibility, transparency, assimilation of technology and discipline.

E. To harmonize the functioning of the Central Government Organisations with the demands of the emerging global economic scenario.

F. To examine the effects of deployment of “Contract workers” across board viz-a-viz integrity, loyalty and overall impact of delivery of services.

G.To examine the principles which should govern the structure of pension, death-cum-retirement gratuity, family pension and other terminal or recurring benefits having financial implications to the present and former Central Government employees appointed before January 1, 2004.

H. To re-examine the applicability of the New Pension Scheme to all Categories of Central Government Employees.

I. To make recommendations with respect to the general principles, financial parameters and conditions which should govern payment of bonus and the desirability and feasibility of introducing Productivity Linked Incentive Scheme in place of the existing ad hoc bonus scheme in various Departments and to recommend specific formulae for determining the productivity index and other related parameters.

J. To examine the feasibility of extending the scheme for payment of Productivity Linked Bonus, Night Duty Allowance, Over-time (where ever applicable) and such other allowances to all categories of employees including Group “A” Organised Services.

K. To examine desirability and the need to sanction any interim relief/merge DA with Pay till the time the recommendations of the Commission are made and accepted by the Government.

L. To evaluate the existing system of Joint Consultation & Complusory Arbitration (JCM Scheme) with reference to ‘Directive Principles of State Policy’ under Article 43A of the ‘Constitution of India’ on ‘Participation of workers in management of industries’ for promoting harmonious relations and securing the greatest measure of cooperation between the Government, in its capacity as employer, and the general body of its employees in matters of common concern and increasing the efficiency of the public service

Further, it is requested to achieve a reasonable, balanced and implementable report, while taking into consideration the various constraints at present and the past experience in implementation of the 6th CPC report and the various anomalies which cropped up therein, it is suggested that one representative each from the top 5 Central Trade Unions should be made a member of the 7th CPC and It is also demanded that the report of the 7th CPC be finalised and submitted on or before 01-06-2015 so that it can be further examined and finally implemented w.e.f. 01-01-2016.

Thanking you.

Sincerely yours

sd/-
(M. P. SINGH)
General Secretary

Source: http://bpms.org.in/documents/7th-cpc-qw4z.pdf

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