Saturday, 18 June 2016

7th Pay Commission Latest News – Staff Side JCM requests PM intervention on non-settlement of demands of Central Government Employees relating to 7th Pay Commission Recommendations

Indian Military Veterans

Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
Dated: 14.06.2016
Hon’ble Prime Minister of India,
152, South Block,
Raisina Hill,
New Delhi-110011
Respected Sir,
Sub: Non-settlement of our demands – Decision to go on “Indefinite Strike” commencing from 11.07.2016 – Request for your intervention and support
I write this on behalf of the apex level body of all the Central Government Employees Organizations who are participating in the Negotiating Forum; called the Joint Consultative Machinery. The JCM as a Negotiating Forum was conceived and implemented in 1966 after the prolonged discussions with the Staff Associations and the Federations in the Central Services in the wake of first industrial action in 1960. The idea of setting up the JCM was in realization of the absence of a platform to discuss, deliberate and settle the demands/issues/grievances/problems of the Civil Servants. Up to 1995-96 the JCM, which has a three level negotiating platform was functioning well, meetings were regular. However, after the promulgation of the new recognition Rules in 1993, the meetings at the Ministry level became few and far between and at the national level, the deterioration stepped in a little latter. The National Council, which was to meet thrice in a year did not  meet even once in a year. The last meeting of the National Council was held on 15.05.2010 The organizations participating in the JCM were demanding the meeting to be held, but the pleas were ignored by the successive Cabinet Secretaries. The Charter of Demands (copy enclosed), in pursuance of which the strike is decided to be organized, has arisen due to long neglect of the grievances of the employees/workers.
When the 7th CPC was set up in February, 2014, no announcement for Interim Relief or DA Merger was made by the then government, which had all along been the practice whenever the government had set-up the Pay Commissions earlier. We fully co-operated with the Commission, submitted a memorandum detailing the issues and explained the reasoning behind each demand. The 7th CPC submitted report on 19.11.2015 to the government. In our communication dated 10.12.2015 (copy enclosed), we sought improvement/amendment over the recommendations of the 7th CPC and explained our demands both in writing and orally before the Empowering Committee. Most of the meetings were monologues except perhaps the last one. What we have understood, is that, the Empowering Committee might not come forward to make any major changes. A fruitful meeting is supposed to be a dialogue where both parties at the negotiating table exchange their understanding, views and difficulties and reach a mutually acceptable position. In 1998, when the then Cabinet Secretary decided not to have such a dialogue with the Staff Side and unalterably issued the Government Notification on the 5th CPC recommendations, the then government did set up a committee of Group of Ministers. The GoM held discussions on all issues and averted the strike action. The 1998 situation establishes, without an iota of doubt, that, the Staff Side has always taken reasonable stand on all the issues and paved way for settlement.
The one and only recommendation made by the 7th CPC was to provide some relief to the past old pensioners. The Department of Pension & Pensioners’ Welfare has unfortunately recommended to the Cabinet Secretary that, even that recommendation must be rejected on the specious plea that the requisite relevant records might not be available.
These developments have caused anguish, anxiety and anger amongst the workers. It is now more than six months that the Commission submitted its report. If the government comes forward to hold a meaningful discussion with the leaders of the NJCA, a mutually acceptable settlement can be brought about and the impending strike, slated to commence from 11.07.2016, can ultimately be avoided.
We seek your co-operation, supports and intervention in the matter
Yours faithfully,
(Shiva Gopal Mishra)
Secretary(Staff Side),

Revision of pension of pre-2006 pensioners – delinking of revised pension from qualifying service of 33 years

Indian Military Veterans
NEW  DELHI-110066
CPAO/IT&Tech/Revision (Pre-2006)/2016-17/8 Vol-VI/58
13th June,  2016
Office Memorandum
Subject:-  Revision of pension  of pre-2006 pensioners – delinking  of revised pension  from qualifying service of 33 years.
Taking  into  consideration   DP&PW  OM  No.  38/37/08-P&PW (A)  dated-06.04.2016, instructions were  issued for processing of cases of pre-2006 pensioners  by delinking of revised pension from qualifying service of 33 years vide this office OM No. CPAO/IT & Tech/ Revision  (Pre-2006)/2016-17111   dated-12th  April,  2016  and  subsequent  OM  No. CPAO/IT &Tech/Revision (Pre-2006)/2016-17/19 dated-27th April, 2016.
2.  In this context, DP&PW  has clarified the position vide their  ID No.38/6/16-P&PW-(A) dated-13.05.2016   that in accordance with CCS Pension Rules,  pension is admissible if the retiring/ absorbed employee has completed  a qualifying service of 10  years at the time of retirement/ absorption. Therefore,  all those pensioners who were drawing monthly pension after completion of 10 years qualifying service before 01.01.2006 are eligible for benefit in term of OM dated-01.09.2008 and 06.04.2016.
3.  These orders are however, not applicable to those absorbee pensioners who had got  100% lump-sum  in lieu of their monthly pension on absorption in PSUs etc. during 1973-1995 and are  eligible  for  restoration  of  only  113rd   of  their  pension  in respect of  such  absorbee pensioners.  However,  the absorbee pensioners, who are receiving full monthly pension would continue to be covered by the OM dated-01.09.2008  and 06.04.2016   referred to above.
4.  Further, all Pr. CCAs/CCAs/ CAs/AGs and Administrators of UTs  were advised to verify the list of PPO numbers for revision provided by CPAO in their PAOs login,  from their records as to whether these PPO numbers are covered by DP&PW OM dated-06.04.2016.  The other cases which were not available in the list provided by CPAO but covered under the OM dated-06.04.2016 were also  to be revised.  It is to ensure that cases of compulsory retirement pension and compassionate allowance under Rule-40 & 41 of CCS (Pension) Rules,  1972  are not to be revised as they are not covered by the OM dated-06.04.2016.
(Vijay Singh)
Sr. Accounts Officer (IT & Tech)

Empowered Committee recommendations on 7th Pay Commission report – Detailed report by Mr.Dorai

Indian Military Veterans
Empowered Committee recommendations on 7th Pay Commission report – Detailed report by Mr.Dorai


Recent news appearing in the media that the Empowered Committee of Secretaries are planning to recommend 30 percent increase in the Basic Pay of Central Government employees has come as a bolt from the blue as it shall fetch lower benefit than what has been recommended by the 7th Central Pay Commission.

It is not clear whether the media is bungling on this issue without confirming the authenticity of any such move by the Empowered Committee.

Surprisingly quite a large number of central government employees and the Central Government Employees Federations/Associations including the media are not aware that 7th CPC had already recommended a minimum of 32% increase in the basic pay. In fact the recommendation works out to more than 32% increase in basic pay and may go even up to 40% in most of the cases, since after multiplying the existing Pay and Grade Pay by a factor of 2.57 the resulting figure is fitted into the pay matrix at the next higher slab.

The following illustration shall make clear the percentage of increase in basic pay which come to more than 32% of the basic pay:

Under 6th CPC: Assumed Pay & G.P Rs.29490+ D.A at 125% Rs.36863= Rs.66,353
Under 7th CPC: Pay & G.P Rs.29490 x 2.57 factor = 75,789 to be fixed at the next slab of Rs. 77,700 at level 10 in the Grade Pay of Rs.5400
Fitment Benefit : Rs.77,700 – Rs.66,353 = Rs.11,347
Percentage of increase: 38.32% of the basic pay (Rs.11,347 / Rs.29490 =38.47%). The increase will be only 17.10% if both basic and D.A are to be added.(Rs.11,347 / 66,353 = 17.10%)

The VII CPC has arrived at a factor of 2.57 for multiplication with the pre-revised Basic Pay comprising pay in the pay band and grade pay to arrive at new basic pay thereby including 32% of increase in the basic pay. The VII CPC have recommended 32% hike uniformly to all the employees as fitment benefit to the existing pay and grade pay and raised the existing 2.25 factor to 257% or 2.57 factor.
(The increase come to 14.22% if both the basic pay and D.A. are reckoned. However it must be noted that none of the pay commissions in the past had projected the increase by including both basic pay and D.A but had taken only Basic Pay into account for arriving at the percentage of fitment benefit granted as a bonanza.)



i. The 6th CPC had granted approximately 40% increase on the maximum of 5th CPC basic pay scale without taking into account Dearness Pay and D.A as on 1/1/2006 for the purpose of projecting the increase. The fitment benefit of 40% was distinctly shown as Grade Pay.)

ii. The increase granted by 6th CPC works out to 21.5% only if D.P and D.A are to be included in basic pay (40/1.86* factor = 21.5%)

( *1.86 factor means: 1 is to be taken as 100 which stands for Basic Pay and .86 should be taken as 86% which constitute 50% of Dearness Pay +24% DA on both Basic Pay and Dearness Pay i.e. Basic Pay100 + D.P 50 =150 x 24% =36% totaling to 186 or 1.86 factor which the employees had already drawn under 5th CPC Pay Scale as on 1/1/2006)


i. The recommended increase in basic pay by 7th CPC without taking into account 125%D.A as on 1/1/2016 come to a minimum of 32% which may go upto 40% of basic pay comprising Pay in the pay band and Grade Pay depending upon the slab in which the 2.57 multiplication factor gets fitted into at various levels of pay in the pay matrix.

ii. The recommended increase come to only 14.22% if both the basic pay and the 125% D.A as on 1/1/2016 is taken into account.(32/2.25 =14.22%) In other words 2.57*-2.25** = 32.

(*2.57* factor means: 1 + 1.25 + 32 =2.57. While 1 stands for 100% Basic Pay comprising Pay in the pay band and Grade Pay, 1.25 stands for 125% D.A. as on 1/1/2016 and .32 stands for 32% increase in Basic Pay comprising Pay in the pay band and grade pay recommended as Fitment Benefit by VII CPC totaling to 257% or 2.57 factor.

(**2.25 means: 1 + 1.25. While 1 stands for 100% of Basic Pay comprising Pay in the pay band and Grade Pay, 1.25 stands for 125% of D.A. as on 1/1/2016 totalling to 225 or 2.25 factor which the employee was already drawing under 6th CPC Pay Scale as on 1/1/2016. Added to it is 32% fitment benefit on Basic Pay comprising Pay and Grade Pay totaling to 257 or 2.57 factor. In other words 2.25 + 32 =2.57 factor).

Thus it may be seen that if the media report is really true that the Empowered Committee of Secretaries are planning to revise the increase in fitment benefit to 30% of the Basic Pay alone, it is highly deplorable as it shall lead to still lower fitment benefit than what has been proposed by the 7th CPC which recommended 32% minimum increase in the basic pay by arriving at 2.57 factor. This 2.57 factor recommended by 7th CPC for multiplication of basic pay shall come down to 2.55 factor if the Empowered Committee of Secretaries are going to recommend 30% increase in basic pay alone as under:

Basic Pay = 100%
D.A. as on 1/1/201 =125%
Fitment Benefit =30%
Total 255% or 2.55 factor

CONCLUSION: It is high time, the Empowered Committee of Secretaries entrusted with the task of reviewing the recommendations of VII Central Pay Commission desist from taking any hasty decision without fully analyzing the ground realities as the result will be dismal if really such a move is on the anvi. This 32% minimum increase in Basic Pay comprising Pay in the pay band and Grade Pay recommended by VII CPC which come to only 14.22% increase if both basic pay and D.A is taken into account, has caused disgruntlement and anguish among all the central government employees. If there is going to be an increase of 25 to 30 percent on both basic pay and grade pay or 50 to 60 percent increase on basic pay alone, then there can be some contentment among the central government employees who have been desperately waiting for a pay hike for more than 10 years. What is required is a concerted and concrete effort to solve the grievances relating to pay hike, in consultation with the stake holders with a pragmatic approach to resolve the issues.

Deputy Director
(Ministry of Labour, Govt. of India)
Rajajinagar,Bangalore-560010- is the Author of this article

7th Pay Commission Award Awaits Cabinet Approval

Indian Military Veterans
New Delhi: The 7th Pay Commission award, which is likey to be finalized by the Empowered Committee of Secretaries headed by the Cabinet Secretary P K Sinha, awaits the approval of the Union Cabinet.
It may come up in the Cabinet meetings later this month, say sources.
The Cabinet meetings later this month is understood to approve the proposal of Empowered Committee of Secretaries, which has been constituted to look into the recommendations of the 7th Pay Commission for cabinet nod.
The Empowered Committee is likely to recommend a substantial pay hike which could be up to 30 per cent or even more, said sources on Thursday.
Finance Minister Arun Jaitley will soon place 7th Pay Commission award before the Cabinet for approval after receiving the Empowered Committee’s report.
Finance Minister Arun Jaitley will soon place 7th Pay Commission award before the Cabinet for approval after receiving the Empowered Committee’s report.
The meeting of the Empowered Committee took place on Tuesday and further meetings are likely to be held soon to give final touch to the matters related to 7th Pay Commission recommendations.
The Prime Minister’s Office (PMO) is also directing the Empowered Committee of Secretaries to recommend sufficient pay for central government employees to determine if it’s enough for them to survive.
The PMO told the Empowered Committee, “sufficient to provide for the life and health of central government employees,” say sources.
The Empowered Committee is likely to recommend a minimum basic pay at Rs 24,000 and the highest salary at Rs 2,70,000 and they also likely to recommend for doubling of existing rates of allowances and advances.
However, the 7th Pay Commission had recommended a minimum monthly basic salary of Rs. 18,000 and maximum Rs. 2,50,000. A 30 percent increase would translate into minimum basic salary of Rs. 23,400 and maximum at Rs. 3,25,000, respectively.
The sources said it was ‘natural’ for the Empowered Committee to recommend higher basic pay proposed than 7th Pay Commission. “It also happened before.”
The previous Sixth Pay Commission had recommended a 20 per cent hike in basic pay which the government doubled while implementing it in 2008, they added.
“Central government employees could get the revised pay and allowances from their August salaries and arrears are to be paid ahead of festive season of Dussehra in one installment,” sources said.
The sources told The Sen Times that the Finance Minister Arun Jaitley will soon place 7th Pay Commission award before the Cabinet for approval after receiving the Empowered Committee’s report.

Media reports substantial pay hike for central employees

Indian Military Veterans

Govt employees to get  hiked salary from August, arrears in one installment ahead of Dusshera.

 The central government employees and pensioners are likely to get their 6 months of arrears just ahead of the Dusshera festival in October.

As per media report, increased salary of July will be credited to the 47 lakh central government employees and 52 lakh pensioners' accounts on August 1, 2016. But the arrears of last 6 months will be credited in one installment ahead of the Dusshera in October.

As per sources, the Empowered Committee of Secretaries headed by the Cabinet Secretary Pradeep Kumar Sinha has recommended a 30 percent increase in minimum and maximum basic pay structures along with doubling of existing rates of allowances and advances.

The 7th Pay Commission had suggested a maximum basic pay of Rs 2,50,000 and a minimum of Rs 18,000. A 30 percent increase would translate into maximum salary of Rs 3,25,000 and minimum at Rs 23,400, respectively.

Cabinet likely to approve salary hike by a fortnight

Indian Military Veterans

As per Zee News :
"The secretaries panel reviewing the 7th pay commission's recommendations have submitted its report to the Finance Ministry. The Finance Ministry will prepare a note and present it before the Cabinet in the next 15 days."
Click here to read more

Other media reports :
The much awaited Seventh Pay Commission will be approved by the end of this month. According to reports the Union Cabinet officials reviewing the recommendations made by the commission is likely to approve the bill after which proposed hike salaries will be credited on the account of central government employees from August 1.
Further cabinet meetings which is likely to be held by the end of this month will give a final touch to the recommendation and will approve it also.
Read more »

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