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

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

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

Change in 7th Pay Commission visit to Bengaluru

Change in Commission’s visit to Bengaluru

There is a slight change in 7th CPC’s visit to Bengaluru. The Commission now proposes to visit Bengaluru between 24th and 26th August, 2014 instead of the earlier announced date of 25th-27th August, 2014.

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 Bengaluru between 24th August and 26th August 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. An early response in this regard would facilitate proper scheduling of the meetings.

Source: http://7cpc.india.gov.in/

#7th CPC, #7CPC, #7th CPC News, #7th CPC Pay Structure, #7th CPC ToR, #7th Central Pay Commission, #7th CPC Common Memorandum, #7th CPC Latest News, #7th CPC Panel Committee

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