Finance Ministry Seeks Comments/views on 7th CPC recommendations

From Ministries and Staff Associations, JCM

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF EXPENDITURE

39-A. North Block. New Delhi-110001

November 21. 2015

D.O.No.1-4/2012-EIII(A)

Dear Sir.

The Report of the 7th Central Pay Commission was submitted to the Governmenton 19.11.2015. A COPY of the Report is placed on the website of Ministry of Finance (www.finmin.nic.in)

2. The process to examine the recommendations of the Commission has to commence immediately. An Empowered Committee of Secretaries chaired by cabinet Secretary is being constituted to consider the recommendations in its entirety and after considering the views of all the Departments as well as the Staff Associations and JCM. An implementation Cell is also being created In this Ministry to process the recommendations based on the views of the Ministries/Departments , Staff Associations and JCM for submitting the matter for consideration of the empowered Committee of Secretaries and thereafter for approval of the Cabinet based on the conclusions arrived at by the Empowered Committee of Secretaries.

3. Thus, the process to consider the, recommendations before it reaches a final shape for approval of the Cabinet requires consultation amongst all the Ministries/Departments who may formulate their opinion based on the views of Staff Associations under their administrative control.

4. Accordingly. it is requested that the following action may be taken on an urgent basis in your Department:

(i) A Nodal Officer at the level of a Joint Secretary may be nominated immediately. Whom the implementation Cell in this Ministry would be interacting with during the course of processing of the recommendations

(ii) The recommendations of the Commission may be examined in regard to issues concerning your Department and the views thereon may be furnished to this Ministry within three weeks.

(iii)The recommendations of the Commission may be examined in regard Posts/Cadre/service/ organization under your Department and the views thereon may be furnished to this Ministry within three weeks.

(iv) While formulating the views of your Department, the comments, if any of any of the recognized Staff Associations under the administrative control of your Department. may also be obtainedand taken into account.

(v) In case your Department has any view on any of the recommendations contained in the Report, even though it may not directly pertain to your Department, may also be furnished under a separate category within three weeks.

(VI) In case you have any other suggestion to make in this regard, the same will b appreciated.

I request you, accordingly to kindly ensure that the action on the above points is given utmost priority and the same is completed within the stipulated timeline of three weeks.

With warm règards.

Yours sincerely.

(Annie G Mathew)

(courtesy: www.fnpo.org)

Amendment to Bonus Act...

Prime Minister Narendra Modi today said the government will bring to Parliament a bill to amend the Bonus Act with a view to enhance the benefits for the working class.

"We are going to bring an important (bill) in this House (to amend) Bonus Act...The Cabinet has already approved it. This is a very important bill for our workers. We are taking decisions and working for welfare of the labour class," Modi said while replying to a two-day long debate in the Lok Sabha to commemorate the Constitution Day and the 125th birth anniversary of Dr B R Ambedkar.

The Cabinet had earlier decided to double the wage ceiling for calculating bonus to Rs 7,000 per month for factory workers and establishments with 20 or more workers.

The bill also seeks to enhance the eligibility limit for payment of bonus from the salary or wage of an employee from Rs 10,000 per month to Rs 21,000.


(Courtesy: www.fnpo.org)

7th CPC... part VI

Ø  An employee formally appointed to hold full charge of the duties of a higher post, in addition to the duties of his own post, will be entitled to draw the pay that would be admissible to him if he was appointed to the higher post on regular basis OR 10 percent of his present Basic Pay per month, whichever is higher, as Additional Post Allowance, provided the sum total of his Basic Pay and Additional Post Allowance does not exceed the Apex Pay.

Ø  An employee formally appointed to hold full charge of the duties of a post on similar level as his own, in addition to the duties of his own post, will be entitled to draw 10 percent of his present Basic Pay per month as Additional Post Allowance, provided the sum total of his Basic Pay and Additional Post Allowance does not exceed the Apex Scale.

Ø  No Additional Post Allowance should be paid to an employee who is appointed to hold current charge or the routine duties of an additional post, irrespective of the duration of the current charge.

Ø  The allowance will be admissible only if the duration of additional charge exceeds 45 days.

Ø  This arrangement cannot continue for a particular vacant post for more than 1 year, and for a particular employee for more than 6 months at a stretch. In addition, there shall be a minimum gap of 1 year between two such successive appointments of a particular employee.

Ø  For one postman performing the duties of an absentee postman, he shall be paid 10 percent of his Basic Pay per month as Additional Post Allowance, while for two postmen sharing beats to perform the duties of an absentee postman, each shall be paid 5 percent of his Basic Pay per month as Additional Post Allowance.

Ø  Extra Work Allowance will be paid at a uniform rate of 2 percent of Basic Pay per month.

Ø  An employee may receive this allowance for a maximum period of one year, and there should be a minimum gap of one year before the same employee can be deployed for similar duty again.

Ø  This allowance should not be combined, i.e., if same employee is performing two or more such duties, and is eligible for 2 percent allowance for each add-on, then the total Extra Work Allowance payable will remain capped at 2 percent.

Ø  It is proposed to raise the amount to Rs.200 per holiday for Supervisors, Postal Assistants and Postmen/Sorting Postmen; and Rs.150 per holiday for Multi-tasking Staff. The rate of allowance will further increase by 25 percent each time DA increases by 50 percent.

Ø  Ministries/Departments should work out plans to first minimize and then eliminate all sorts of cash transactions.

Ø  Training Allowance In the National/Central Training Academies and Institutes for Group `A’ officers 24% of Basic Pay In other Training Establishments 12% of Basic Pay

Ø  It will be admissible only to the employees who join the training establishments for a specified period of time and are then likely to go back. It will not be admissible to those employees who are directly recruited by such training establishments for imparting training

Ø  The allowance will be payable to an eligible employee for a maximum period of five years only during the entire career, for which period the Deputation (Duty) Allowance will not be granted. Beyond five years, Training Allowance will not be granted, but Deputation (Duty) Allowance will be admissible.

7th CPC... Part V

NPS...

Ø  The Commission recommends that the investment choices under NPS be calibrated on a life cycle approach and the choices be offered in a simple manner so that any lay person can understand and act accordingly. The Commission also recommends that government, in consultation with PFRDA, come up with different options for investment mix and provide subscribers a range of options.

Ø  Associations and individuals have made presentations before the Commission highlighting that forecasts suggest that a 10 percent contribution from government will not be adequate to provide reasonable post retirement financial security in all cases. The Commission, therefore, recommends that this important aspect should be re-examined in detail by an expert body for making course corrections if required.

Ø  The Commission therefore recommends that Central Governments and State Governments should, in a time bound manner, ensure that all the due contribution along with compounded interest, where contributions have been delayed, be deposited in the accounts of the beneficiaries. Advisories should be issued to the State Governments to deposit amounts, if not already done, in respect of NPS beneficiaries belonging to All India Services.

Ø  The Commission therefore recommends that PFRDA should take steps to make the Tier-II accounts operational as early as possible to enable the NPS subscribers the facility of withdrawals from their accounts in case of requirement.

Ø  The Commission noted that PFRDA sends a communication to every participant each month with the current pension wealth and the latest contribution that has been credited. The Commission recommends that focused efforts be made to capture email addresses and mobile numbers of subscribers so that seamless communication is ensured for all subscribers. The Commission recommends that consultation with stakeholders should also be held periodically in different parts of the country.

Ø  The Commission notes that no department of Government of India is taking ownership of the NPS. The Commission recommends that a Committee consisting of Secretary, Department of Financial Services, Secretary, Department of Pensions and Pensioners Welfare and Secretary, Department of Administrative Reforms and Public Grievances may be constituted to review the progress of implementation of NPS. The Commission Report of the Seventh CPC 427 Index also recommends that steps should be taken for establishment of an Ombudsman for redressing individual grievances relating to NPS

Ø  The Commission feels that tax neutrality should be ensured across various avenues for long term savings for post retirement incomes so that the employees covered by NPS are not at a disadvantage. The Commission therefore recommends that withdrawals under the NPS should be tax-exempt to place NPS at par with other pension schemes. The Commission also recommends that the service tax levied at the time of annuity purchase by NPS subscribers should be exempted.

Ø  Family Pension after the death of the employee is not ensured in the NPS. The Commission notes that the government had provisionally extended benefits under the Central Civil Service (Extraordinary Pension) Rules, Family Pension/Extraordinary Family Pension/Liberalised Pensionary Award to government servants appointed on or after 01.01.2004. Rules regulating these benefits have now been notified by the PFRDA. PFRDA regulations provide for an exit option from NPS in case of premature death of the subscriber by availing of additional relief from government, in which case the entire accumulated pension wealth inclusive of subscriber’s contribution would be transferred to government. The Commission recommends notification of a scheme by government for provision of additional relief in such cases consequent to exit from NPS.

Ø  The Commission notes that rules and regulating relating to NPS are being framed and notified by PFRDA from time to time... The Commission recommends that government encourage the PFRDA to set up a strong consultative mechanism involving the DPPW, DoPT, DFS and some associations of employees for a review of regulations and for finalizing future regulations to bring clarity and remove uncertainty relating to NPS. The Commission also recommends that draft regulations should be widely publicized to enable subscribers to respond to any proposed changes, as normally done by other regulatory authorities.

7th CPC.... Part IV

Revision of Pension...

ØAll the civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.

Ø  The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.

Ø   Pensioners may be given the option of choosing whichever formulation is beneficial to them.

It is recognised that the fixation of pension as per formulation in (i) above may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring level. It is therefore recommended that in the first instance the revised pension may be calculated as at (ii) above and the same may be paid as an interim measure. In the event calculation as per (i) above yields a higher amount the difference may be paid subsequently

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Terminal benefits:

Ø  The Commission does not recommend any further increase in the rate of pension and family pension from the existing levels. Quantum of Minimum Pension should Equal the Minimum Wage

Ø  This Commission does not recommend any change either in the maximum percentage of commutation or in the period of restoration.

Ø  The Commission recommends enhancement in ceiling of gratuity from the existing 10 lakh to 20 lakh from 01.01.2016. The ceiling on gratuity may increase by 25 percent whenever DA rises by 50 percent.

Ø  The Commission notes that the revision with regard to period of eligibility for the enhanced family pension of ten years was made based on recommendations of the VI CPC Report. No further change is being recommended by this Commission.

Death gratuity:

Ø  Length of Service Rate of Death Gratuity Less than one year: 2 times of monthly emoluments

Ø  One year or more but less than 5 years: 6 times of monthly emoluments

Ø  5 years or more but less than 11 years: 12 times of monthly emoluments.

Ø  11 years or more but less than 20 years: 20 times of monthly emoluments.

Ø  20 years or more : Half month of emoluments for every complete six monthly period of qualifying service subject to a maximum of 33 times of emoluments

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Health Insurance:

Ø  The Commission strongly recommends the introduction of health insurance scheme for Central Government employees and pensioners.

Ø  The Commission recommends that the remaining 33 postal dispensaries should be merged with CGHS.

Ø  The Commission further recommends that all postal pensioners, irrespective of their participation in CGHS while in service, should be covered under CGHS after making requisite subscription.

Ø   Currently, there are various health care schemes in the Central Government catering to specific sets of employees. For example, apart from CGHS, there are Ex-Servicemen Contributory Health Scheme (ECHS) and Railways Employees Liberalized Health Scheme (RELHS) which cover ex-servicemen and Railway employees/pensioners, respectively. Although the patterns in these schemes vary, a combined entity of CGHSECHS-RELHS would result in a very strong network of health facilities for the Central Government employees across the length and breadth of the country. The Commission recommends that possibility of such a combined network of various medical schemes should be explored through proper examination.

7th CPC... Part III

Ø   Reimbursement of staying accommodation charges  per day:

Ø   Level 14 and above :  Ceiling for Reimbursement 7500

Ø  Level 12 and 13:   Ceiling for Reimbursement:4500

Ø  Level 9 to 11: Ceiling for Reimbursement:  2250

Ø  Level 6 to 8: Ceiling for Reimbursement: 750.

Ø  Level 5 and below: 450 .

Ø  For levels 8 and below, the amount of claim (up to the ceiling) may be paid without production of vouchers against self-certified claim only.

Ø  The self-certified claim should clearly indicate the period of stay, name of dwelling, etc.

Ø  The ceiling for reimbursement will further rise by 25 percent whenever DA increases by 50 percent.

Ø  Additionally, it is also provided that for stay in Class ‘X’ cities, the ceiling for all employees up to Level 8 would be Rs.1,000 per day, but it will only be in the form of reimbursement upon production of relevant vouchers.

Ø  Reimbursement of travelling charges:

Ø  Level 14 and above :  Ceiling for Reimbursement AC Taxi charges up to 50 km

Ø  Level 12 and 13:   Ceiling for Reimbursement: Non-AC Taxi charges up to 50 km

Ø  Level 9 to 11: Ceiling for Reimbursement:  Rs. 338 per day

Ø  Level 6 to 8: Ceiling for Reimbursement: Rs.225 per day

Ø  Level 5 and below: Rs.113 per day

Ø  Similar to Reimbursement of staying accommodation charges, for levels 8 and below, the claim (up to the ceiling) should be paid without production of vouchers against self certified claim only. The self-certified claim should clearly indicate the period of travel, vehicle number, etc.

Ø  The ceiling for levels 11 and below will further rise by 25 percent whenever DA increases by 50 percent.

Ø  The rate of allowance for foot journeys shall be enhanced from the current rate of Rs.7.5 per km to Rs.12 per km travelled on foot. This rate also shall further rise by 25 percent whenever DA increases by 50 percent.

Ø  There will be no separate reimbursement of food bills. Instead, the lump sum amount payable per day, will be as  below :

Ø  Level 14 and above :  Rs.1200.

Ø  Level 12 and 13:   Rs.1000

Ø  Level 9 to 11: Rs.900

Ø  Level 6 to 8: Rs.800

Ø  Level 5 and below: Rs.500.

Ø  No vouchers will be required.  

Ø  The Lump sum amount will increase by 25 percent whenever DA increases by 50 percent.

Ø  If absence from headquarters is 12 hours 100% of Lump sum amount.

Ø  If absence from headquarters is 06 hours to 12 hours 70% of Lump sum amount.

Ø  If absence from headquarters is below 06 hours: 30% of Lump sum amount.

Ø   Absence from Head Quarter will be reckoned from midnight to midnight and will be calculated on a per day basis.

Ø  It is recommended that CTG should be paid at the rate of 80 percent of last month’s Basic Pay. However, for transfer to and from the island territories of Andaman, Nicobar and Lakshadweep, CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay.

Ø  The individual components of TA for retiring employees will be similar to TA on Transfer, as outlined above.

7 th CPC ...Part II

The following rates of CGEGIS are recommended:

Ø  Level of Employee- 10 and above: Monthly Deduction Rs.5,000/- & Insurance Amount Rs.50,00,000.

Ø  Level of Employee- 6 to 9: Monthly Deduction Rs.2,500/- & Insurance Amount Rs.25,00,000.

Ø  Level of Employee- 1 to 5: Monthly Deduction Rs.1,500/- & Insurance Amount Rs.15,00,000.

Ø  GIS ...  Commission recommends that the ratio of Savings Fund to Insurance Fund be modified from the present 70:30 to 75:25.

Ø  The Commission would like to express its concern at the widespread use of Spl CL as a means of getting away from duty... The government may, however, consider the following suggestions: 1. Review the purposes for which Spl CL is presently granted. 2. Limit the number of purposes for which an employee can be granted Spl CL in a year. 3. Limit the total number of days that an employee can be granted Spl CL in a year.

Ø  Extension of CCL to single male parents is recommended.

Ø  HBA: 34 times Basic Pay OR 25 lakh OR anticipated price of house, whichever is least.

Ø   The requirement of minimum 10 years of continuous service to avail of HBA should be reduced to 5 years.

Ø  If both spouses are government servants, HBA should be admissible to both separately.

Ø  Existing employees who have already taken Home Loans from banks and other financial institutions should be allowed to migrate to this scheme.

Ø  PC Advance: Rs.50,000 or actual price of PC, whichever is lower- May be allowed maximum five times in the entire service

Ø  The amount of most of the advances is quite low. With the increased salary packages provided after successive Pay Commissions, these advances have lost their relevance... it is recommended that all Interest free advances should be abolished.

Ø  Subsistence Allowance is payable to an employee under suspension or deemed to have been placed under suspension. ...Payment of Subsistence Allowance is as per CCS (CCA) rules. Status Quo is recommended.

Ø  Split Duty Allowance is payable to Sweepers and Farashes in the Central Secretariat/allied offices performing split duties where the break in between the shift is at least two hours and who have not been provided residential accommodation within 1 Km. of the office premises

Ø  The existing rate is Rs.300 pm. It is recommended that the allowance should be increased by a factor of 1.5 to Rs.450 pm. The rate will further rise by 25 percent each time DA rises by 50 percent.

Ø  Recommends that OTA should be abolished (except for operational staff and industrial employees who are governed by statutory provisions), at the same time it is also recommended that in case the government decides to continue with OTA for those categories of staff for which it is not a statutory requirement, then the rates of OTA for such staff should be increased by 50 percent from their current levels.

Ø  Fixed Medical Allowance is granted to pensioners for meeting expenditure on day to day medical expenses that do not require hospitalization, presently payable at the rate of Rs.500 .The Commission notes that this allowance was enhanced fromRs.300 pm to Rs.500 pm from 19.11.2014. As such, further enhancement of this allowance is not recommended

Ø  The Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance.

7th Pay Commission...

ஏழாவது ஊதியக் குழு அறிக்கையின் முக்கிய அம்சங்கள்...Part I

1. ஊதியக் குழுவின் பரிந்துரைகள் அமலாகும் தேதி 1.1.2016 முதல்.                                              
        (6th CPC was implemented w.e.f 01.01.2006. )       

2. கடை நிலை ஊழியருக்கான குறைந்த பட்ச ஊதியம் ரூ. 18000/-. 

  

3. FITMENT FORMULA-(MULTIPLICATION FACTOR) 2.57 ஆகும். 

4. பதவி உயர்வுக்கான ஊதிய நிர்ணயத்தில் எந்த மாற்றமும் இல்லை.  முந்தைய ஊதியத்தில் ஒருINCREMENT .  

5. வருடாந்திர ஊதிய உயர்வு  அடிப்படை ஊதியத்தில் 3%.   

6. MACP வழங்குவதில் எந்த மாற்றமும் இல்லை. 

7.  PAY BAND  மற்றும்  GRADE PAY  முறை ஒழிக்கப்பட்டது.  புதிய ஊதிய நிர்ணய முறையாக 40  ஆண்டுகளுக்கான “ MATRIX BASED OPEN ENDED PAY STRUCTURE “.    

   

8. இதுவரை பெற்றுவந்த 52 ALLOWANCE களை ஒழித்திட பரிந்துரைக்கப்பட்டுள்ளது. அதில் முக்கியமானவ ஒரு சில :-

Cash Handling Allowance, Treasury Allowance, Handicapped Allowance, Risk Allowance, Savings Bank Allowance, Special compensatory (Hill Area) Allowance, Cycle Allowance, Family Planning Allowance.

9. வீட்டு வாடகைப்படி X, Y, Z  பகுதிகளுக்கு முறையே 24%, 16% மற்றும்  8% ஆக குறைக்கப்படும்.  

10. D.A. FORMULA வில் எந்தவித மாற்றமும்  இல்லை.

11 CASUAL LEAVE /EL / HPL உயர்த்தப்பட  பரிந்துரைக்கவில்லை. 

12. HOUSE BUILDING ADVANCE உயர்த்தப்பட  பரிந்துரைக்கப்படவில்லை.

13. CHILD CARE LEAVE முதல்  365  நாட்களுக்கு முழு ஊதியத்துடனும் , அடுத்த    365 நாட்களுக்கு  80%  ஊதியத்துடன். 

14.  மகப்பேறு விடுப்பில்  மாற்றம்  இல்லை.

15. ஓய்வுபெறும் போது   LEAVE ENCASHMENT MAXIMUM 300  DAYS  என்பது உயர்த்தப் படவில்லை.

16.  MEDICAL REIMBURSEMENT, CGHS   திட்டங்களுக்கு  பதிலாகஅரசின் நிதிச் சுமையைக்  குறைக்க   பணியில் இருக்கும் மற்றும் ஒய்வு பெற்ற ஊழியர்களுக்கு அவரவர்கள் PREMIUM செலுத்தலில் 

   MEDICAL INSURANCE திட்டம் பரிந்துரைக்கப்பட்டுள்ளது.

17. TRANSPORT ALLOWANCE 125%  பஞ்சப்படி  அடிப்படை சம்பளத்துடன் இணைக்கப்பட உள்ளதால் கீழே

    காணும் வகையில் வழங்கப்படும்.

Pay Level	Higher Transport Allowance cities (A, AI)	Other places
9 and above	7200 + DA	3600 + DA
3 to 8	3600 + DA	1800 + DA
1 and 2	1350 + DA	900 + DA

18.  LTC  வழங்குவதில் மாற்றமில்லை. 

19.  PERFORMANCE RELATED PAY என்பது அறிமுகப் படுத்தப்படுகிறது. இனி BONUS என்பது  PERFORMANCE RELATED PAY யுடன்  இணைத்திட (SUBSUMED) வழி வகுக்கப்பட்டுள்ளது.

20.  முதல் 20 ஆண்டுகளில்  பணித்திறன் “ மிக நன்று “ என்று அதிகாரிகளிடம் இருந்து பரிந்துரைக்கப்படாத ஊழியர்களுக்கு   EFFICIENCY BAR   முறை மூலம் ஆண்டு ஊதிய உயர்வு    நிறுத்தப்படும்.  பணித்திறன் இழந்ததாகக் கருதப்படும் ஊழியர்கள் பணியிலிருந்து வெளியேற்ற    (COMPULSORY RETIREMENT) பரிந்துரைக்கப் பட்டுள்ளது.

21.   புதிய  ஓய்வூதியத்  திட்டம் தொடரும்.

22.   GROUP INSURANCE கீழே காணும் வண்ணம் மாற்றப்படுகிறது.

     Level                                Monthly Contribution           Insurance Amount

     1 to 5                   1500                                       15 Lakhs

     6 to 9                   2500                                       25 lakhs

     10 and above      5000                                       50 lakhs

23.   குறைந்த பட்ச  ஓய்வூதியம்   ரூ. 9000/-  ( 50%  OF MINIMUM PAY  VIZ. RS. 18000/-)

24.   FIXED MEDICAL ALLOWANCE   உயர்த்தப் படவில்லை.

25.   GDS ஊழியர்களை CIVILIAN EMPLOYEE ஆக கருத முடியாது.

26.  IP, ASP, SP, SSP போன்றவர்களுக்கு  உயர் ஊதியக் கோரிக்கை   ஏற்கப்பட்டுள்ளது.

27.  SYSTEM ADMINISTRATORS ,  MARKETING EXECUTIVE  களுக்கான  தனி  CADRE வேண்டிய கோரிக்கையும் உயர் ஊதியக் கோரிக்கையும் நிராகரிக்கப்பட்டுள்ளது.

28.  MACP க்கு  பெஞ்ச் மார்க்  இனி  ‘VERY GOOD ‘  பெற வேண்டும் .

   (courtecy: www.aipeup3tn.blogspot.in)