The tenure of the VII Central Pay Commission has been extended by four months to December 2015 by the government. It was expected that it will submit its report by 28th August 2015, but now it may be submitted only by December 2015. The recommendations are to be implemented from 01-01-2016, ten years after the last wage revision. There is a rumour that the Pay panel is going to suggest for constituting a permanent body for giving recommendations.
|New Delhi: The Seventh Pay Commission is likely to recommend the government to form a permanent pay panel to give recommendations to the government from time to time on issues pertaining to pay structure of central government employees.|
The permanent pay panel would recommend regular salary hikes in keeping with the rate of inflation.
The formation of the permanent pay panel would help raise the salaries and allowances of central government officials and employees, an official of the pay panel said.
He added the permanent pay panel would recommend salary and allowance hikes in keeping with the rising inflation rate, which will be implemented by the government. “Then it will not be necessary to form a new commission during the next several years for central government employees.”
However, the Seventh Pay Commission got one month extension to submit its recommendations.
Accordingly it is expected to submit its report by the end of September. The time allotted for the commission ends this month.
The government appointed the Seventh Pay Commission on 28 February 2014 under chairman, Justice Ashok Kumar Mathur, with a time frame of 18 months to make its recommendations
“There are some data points that are missing, which we hope to get by this month end. We are trying to submit the report by 20 September,” the official of the pay panel also said.
The government’s salary bill will rise by 9.56% to Rs 1,00,619 crore with the implementation of the recommendations of the Seventh Pay Commission, according to a statement tabled in Parliament by Finance Minister Arun Jaitley on August 12.
The recommendations of the Seventh Pay Commission, is likely to be implemented in April, next year. (Courtesy: Confederation)
Justice A.K.Mathur, Chairman of the VII Central Pay Commission has stated that the recommendations of the Commission will be submitted to the Government by the end of September 2015. This is one month’s delay from the earlier proposal to submit the report in August 2015.
The CG Employees are due for pay revision w.e.f. 2016. Most of the state governments are revising the pay of their employees based on the recommendations of the Central Pay Commission.
As per the communications from Com. Shiv Gopal Mishra, Secretary, Staff Side, JCM National Council, the report of the VII Central Pay Commission may be delayed by about one month. The report was expected to be submitted by the last week of August 2015.
Com. Mishra had met the Chairman and Secretary of the VII CPC on 7th August 2015, during which this news was conveyed to him.
Lakhs of CG employees are eagerly waiting for the report. Most of the state governments also implement the recommendations. It will have its own impact on the Pay Revision/Wage Agreement in the the central Public Sector also.
The following report is from the VII CPC Website:
“Further to the memoranda received from a variety of Organisations, Federations, Groups representing civil employees in the Government of India as also from the Defence Services, the Commission has had fruitful and wide ranging discussions on relevant issues with all stakeholders. Such interactions have now been concluded. Valuable inputs have been received and the work of compilation and finalization of the report is underway, so that the Commission completes its task in the time frame given to it. Accordingly, any future requests for meeting with the Commission will not be entertained.”
The VII Central Pay Commission has intimated the Secretary, Staff Side, National Council, JCM that the last meeting with the National Council will be held on 9th June 2015 at the CPC Office.
This indicates that the Pay Commission is going through the last round of discussions. It is not clear when VII CPC will submits its report.
The DA for the Central Government employees has reached 113% of their pay. It has been the practice that, when the DA increases more than 50%, it should be merged with pay so that the workers will not be losing much due to the increase in the cost of living.
Though the VII Central Pay Commission has been appointed, the terms of reference given to CPC do not include DA Merger and hence the CPC is denying to give any recommendation in the matter.
As such, it is incumbent on the government to declare DA merger at least to 100% with out any further delay.
The JCM Staff Side Circular issued by Com. Shiv Gopal Mishra, Secretary Staff Side is reproduced below:
The 7th CPC had asked the JCM Staff Side to present their case before the Commission for wage revision on 23rd and 24th March 2015. Accordingly, the Standing Committee of the Staff Side met on 22nd March and again 23rd March 2015. The presentation was made on 23rd and 24th March 2015 before the Commission.
We have discussed the memorandum, chapter wise and the Commission made a very patient hearing and interacted with us seeking clarifications on certain matters. It is not possible to provide a detailed account of the discussions. However, we are to inform you that we came out of the discussion with a very good impression and satisfaction.
1. The Commission will adopt Minimum Wage Concept(Dr. Aykhrod Formula) as the principle of wage determination. They will however, collect the retail rates of the commodities that go into the basket.
2. We have pleaded for the adoption of the best international practices while fixing the highest salary.
3. On the demands for Interim Relief and Merger of DA, the Commission finally said that those can only be considered if Terms of Reference are amended.
4. The Commission agreed that there had been reduction in the sanctioned strength and working strength over the years despite the increased workload.
5. They have also noted that there was substantial reduction in percentage terms of the expenses on salary and wages over the years.
6. The Commission enquired, as to how multiplication factor of 3.7 was arrived at. The same was explained in detail.
7. Fitment Formula and the demand on Fixation of Pay on Promotion, were appreciated as the rationale was explained.
8. Date of effect: No commitment or comment was made by the Commission. The Staff Side explained, as to how they compromised by shifting the date from. 01.01.2011 to 01.01.2014.
9. The institution of Special Pay, especially in the wake of de-layering was explained.
10. Common Categories: We have requested the upgradation and amalgamation of the cadres of LDC with UDC and the need for bringing about parity in pay scales of the Subordinate Offices with the Central Secretariat. The problems of Staff Car Drivers were also elaborated. The contractorisation and casualisation at lower level positions and the consequent exploitation of the labour were discussed at length. The Commission has made a proposal to do away with the contractorisation/casualisation. Staff side will discuss the proposal and will send its views to the Commission in due course.
11. Classification of Posts: Our proposal has not been found favour.
12. GDS: While sympathizing with the Staff Side, the Commission wanted them to approach the Government with a view to amend the Terms of Reference.
13. Allowances and Advances: Detailed discussions were held on HRA, CCA, Transport Allowance, CEA and Special Allowance for personnel posted at North East Region. Chapters dealing with the facilities was also discussed at length, including compassionate appointment. On holidays, we have requested to include May Day in the list of holidays. The background of observance of May Day was enquired by the Commission and explained.
14. Pension and Retirement Benefit – NPS: Commission stated categorically that NPS being an Act of Parliament, they will not make any comment thereon.
Pension Computation: The rationale of 67% was explained and appreciated.
Minimum Pension: our demand for 2/3rd of the Minimum Wage was also explained.
Parity in pension of past and present pensioners was fully explained, linked with one rank -one pension scheme for Defence Personnel. We have pleaded that Civilian Pensioners should not be discriminated against. Demand for Additional Pension for both Pensioners and Family Pensioners was explained. All matters concerning Family Pension were also discussed. So also, gratuity to be computed in accordance with the Gratuity Act.
There was good response for the demands from the Commission.
Restoration of commuted value of pension: The Commission will enquire the views of the Government as to what is their objection to the demand.
Medical facilities for pensioners and discrimination between Pensioners in CGHS area and CCS(MA) Area as also the Postal Pensioners was brought home including the higher Fixed Medical Allowance for ESI persons.
Certain clarifications/elucidations have been asked for by the Commission. To provide such clarifications, another meeting with the Commission might be held after the Commission’s interaction with other organizations. The Staff Side may meet the Commission after their interaction with the other organizations are over.
(Shiva Gopal Mishra)
A National Convention of central government Employees including Railways and Defence will be held at New Delhi on 11th December 2014 under the auspices of the Staff Side, National Council to focus on the major demands of the central Government employees placed before the VII Central Pay Commission. The New Payscales, Merger of DA with Pay, Interim Relief, Scrapping of PFRDA etc. are some of the demands. The Convention is expected to take decision for appropriate agitational programmes for settlement of the issues.
We wish the Convention all success !
The National JCM has already submitted a Common Memorandum to the VII Central Pay Commission. It is a very long and detailed Memorandum covering all the issues. Part II of the Memorandum is on the issues of the Pensioners, including BSNL Pensioners.
Certain Salient Features of the Common Memorandum are given below:
1. On the basis of the Minimum Wage as per 15th Indian Labour Conference formula, the lowest minimum pay should be Rs. 26,000/-
2. Distinct Pay Scale system as before should be brought, instead of Pay Band and Grade Pay System.
3. Ratio of Minimum to Maximum scale should be 1:8
4. Annual increment rate should be 5%
5. Multiplication Factor for new pay scales should be 3.7
6. Fixation benefit should be two increments in the feeder cadre
7. Date of effect should be from 01-01-2011
8. The existing formula on DA may continue.
9. HRA should be 60% for X class, 40% for Y class and 20% for Z class
10.Pension and Allowances of Pensioners should be exempt from Income tax.
11. No downsizing, outsourcing,contractorisation.
12. Casual, Contingent, daily rated workers should be regularised.
13. 5 Assured Career Progression( Promotions) should be ensured.
14. New Formula for Bonus instead of Adhoc Bonus.
15. 5% ceiling of Compassionate ground appointments should be removed. Deserving candidates are given employment within three months of death.
16. Periodicity of LTC to be reduced to two years instead of 4 years.
17. Effective Grievance Procedure to be introduced.
18. Equal Pay for Equal work to be implemented.
19. Scrap New Pension Scheme.
20. Special casual leave to Union activities, sports etc. to be increased to 40 days.
21. Group Insurance to be hiked to Rs. 5 lakhs to 15 lakhs.
22. Minimum of the lowest Pay Scale Rs. 26,000 for S.1
Minimum of the Highest pay Scale Rs. 2,40,000 for S-14.
23. 100% DA to be merged
24. Interim Relief to be paid.
There are many other demands and the Common Memorandum is a detailed and lengthy one. A good work has been done by the Confederation and the National council JCM Staff Side.