An analysis of extending the term of 7th Pay Commission

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

4 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/

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

7th Pay Commission: Rajya Sabha questions regarding Expected date of report & implementation and representative of security forces

7th Pay Commission: Rajya Sabha questions regarding Expected date of report & implementation and representative of security forces

GOVERNMENT OF INDIA

MINISTRY OF  FINANCE

RAJYA SABHA

QUESTION NO  1380

ANSWERED ON  10.03.2015

Seventh Pay Commission

1380 Shri Narendra Kumar Kashyap

Will the Minister of FINANCE be pleased to satate :-

(a) Whether Government has announced the Seventh Pay Commission for the Central Government employees;

(b) if so, the details thereof;

(c) by when the Commission is likely to submit its report and the date from which it will be implemented;

(d) whether the representatives of the security forces have also been included in this Commission; and

(e) if so, the details thereof?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI JAYANT SINHA)

(a) & (b) : The Government of India has appointed the Seventh Central Pay Commission comprising of the following vide Resolution dated 28th February, 2014:
(i) Shri Justice Ashok Kumar Mathur – Chairman
(ii) Shri Vivek Rae – Member (Full time)
(iii) Dr. Rathin Roy – Member (Part time)
(iv) Smt. Meena Agarwal, – Secretary

(c): In terms of the aforesaid Resolution dated 28.2.2014, the Commission is required to make its recommendations within 18 months from the date of its constitution.

(d) & (e). No Sir.

भारत सरकार

वित्त मंत्रालय

व्य्य विभाग

राज्य सभा

अतारांकित प्रश्न  संख्या: – 1380 

 मंगलवार, 10 मार्च, 2015/19 फाल्गुन, 1936 (शक)

सातवां वेतन आयोग 

1380. श्री नरेन्द्र  कुमार कश्य प: 
क्याा वित्त मंत्री यह बताने की कृपा करेंगे कि:
(क) क्या सरकार ने केन्द्र सरकार के कर्मचारियों के लिए सातवें वेतन आयोग की घोषणा की है; 
(ख) यदि हां, तो तत्संबंधी ब्यौरा क्या है; 
(ग) आयोग द्वारा कब तक अपनी रिपोर्ट सौंपने की संभावना है और इसके किस तिथि से लागू होने की संभावना है; 
(घ) क्या इस आयोग में सुरक्षा बलों के प्रतिनिधियों को भी शामिल किया गया है; और 
(ङ) यदि हां, तो तत्संबंधी ब्यौरा क्या  है?

उत्तर

वित्त मंत्रालय में राज्य मंत्री (श्री जयंत सिन्हा)

(क) और (ख): भारत सरकार ने 28 फरवरी, 2014 के संकल्प के तहत सातवें केन्द्रीय वेतन आयोग का गठन कर दिया है जिसमें निम्नलिखित शामिल हैं:

(i)   न्यायमूर्ति श्री अशोक कुमार माथुर – अध्यक्ष
(ii) श्री विवेक राय – सदस्य (पूर्णकालिक)
(iii) डॉ. रथिन रॉय – सदस्य (अंशकालिक)
(iv) श्रीमती मीना अग्रवाल – सचिव
(ग): 28 फरवरी, 2014 के उपर्युक्त संकल्प के अनुसार, आयोग को अपने गठन की तारीख से 18 माह के अन्दर अपनी सिफारिशें देनी हैं। 
(घ) और (ङ): जी, नहीं। 

*****

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

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.


#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

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/] - See more at: http://centralgovernmentstaffnews.blogspot.in/2014/07/centre-made-discretionary-decision-on.html#sthash.0rk8icxB.dpuf

7th CPC Report – When is it going to be submitted?

7th CPC Report – When is it going to be submitted

7th Pay Commission Report and the Need for Timeliness 

Background of the 7th Pay Commission

The 7th pay commission report – when is it going to be submitted?

 

The announcement about the 7th pay commission report came out on September the 25th of 2013. This pay commission unlike the 6th pay commission was set up well in advance. This became possible due to significant efforts of various organisations, union lists and the finance commission report. Announcements say that the 7th pay commission will be implemented from 1.1.2016 and it will take approximately 18 months time for the report to be submitted. 

Recently, the 7th pay commission Chairman and the members gave out a public statement on 4.2.2014 and after that on 22.2.2014 the important 7th cpc terms and references were released. Now, the thought that floats on everyone’s mind is whether the 7th pay commission report will be submitted within the 18 months time period and will the employees be able to get the benefits along with their salary from 1.1.2016.

Recently, in the Lok Shaba during the question and answer session, it was pointed out that no specific time limit can be specified as of now for the implementation of the 7th pay commission. However, the finance ministry is now recruiting people for the 7th pay commission pay cell on deputation basis. This is a good attempt which boosts our confidence in the fact that the 7th pay commission will be put into effect on time. 

Reports of the Earlier Pay Commissions

If the employees get the benefits of the 7th pay commission along with our salary on 1.1.2016, then, this will be the first time we are given the pay commission benefits without arrears. I am providing a link containing reports about when the previous pay commissions were set and when they were implemented.

Pay Commission	Date of Appointment	Date of submission of report	Financial impact (Rs. In crores)	Time
First Pay Commission	May, 1946	May, 1947	N.A	1 YEAR
Second Pay Commission	August, 1957	August, 1959	39.62	2 YEARS
Third Pay Commission	April, 1970	March, 1973	144.60	3 YEARS (aprx)
Fourth Pay Commission	June, 1983	3 reports submitted in June, 1986; Dec. 1986 and May, 1987	1282	4 YEARS(aprx)
Fifth Pay Commission	April, 1994	January, 1997	17,000	3YEARS (aprx)
Sixth pay commission	July 2006	March 2008		18 months

Arrears of the 6th Pay Commission :- When you see the timetable above, you can understand that none of the previous pay commissions were implemented on time and without the payment of arrears. When the 6th pay commission was implemented, the government paid a huge amount as arrears in two instalments. This impacted the economy considerably and caused changes in inflation rate and GDP. This shocking fact was revealed by the 13th finance committee report. 

The Benefits of the Timely Implementation of the 7th Pay Commission :- What benefits will the employees get if the 7th pay commission is implemented on 1.1.2016? Let us have a look. 

Firstly, all the allowances and benefits can be got on 1.1.2016. When the benefits are paid as arrears the employees will not get some of the allowances due to exclusion. 

Secondly, the government will not have to pay a huge amount as arrears and thereby can avoid economic burden. 

Thirdly, if a National Anomaly Committee is set up and the shortcomings of the 7th pay commission are corrected immediately, employees can receive the benefits easily. We have to note that several points mentioned the anomaly committee report of the 6th pay commission still remain problematic and uncorrected. 

Fourthly, let us have a look at the elements of ACP and MACP. Like the ACP and MACP, the financial up gradation is going to be introduced in the 7th Pay Commission; the issues that may arise due to this have to be resolved in a timely manner so that everyone may be benefitted by it.   In the 5th pay commission, the time limit for promotion through ACP remained at 12 years, and in the 6th pay commission the time limit for promotions through MACP remained at 10 years. In the 5th pay commission, a new method of promotion through hierarchy was introduced. In the 6th pay commission promotions happened through grade pay structure. 

The main aim of introducing ACP and MACP is to make sure that an employee gets minimal promotion at least thrice in his life time of service. If this is the case, the minimal service period of an employee should be at least 30 years. But presently, employees are appointed even at the age of 37 and so their service period is just 23 years. Such problems have to be carefully considered well in advance and solved before the 7th pay commission is implemented. 

Let us believe that the 7th pay commission will be the first arrears-free pay commission and implemented on time as per the guidelines of the 13th finance commission.

 

Source: www.7thpaycommissionnews.com