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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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 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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