7th Pay Commission Latest News – Issues to be addressed

7th Pay Commission Latest News – Issues to be addresse

It is a general view of all Central Government Employees that certain allowances, reimbursement and advances which have been abolished or restricted in 7th CPC report are to be allowed to continue

7th Pay Commission Latest News – Employees of Accounts and Audit Department raises certain Common issues in respect of 7th Pay Commission Recommendations which are applicable to all Central Government Employees

7th Pay Commission Latest News – As per representation made by the employees of Accounts and Audit Department certain common issues in respect of allowances, Interest Free Advances and Interest bearing Advances

Issues related to Allowances:

House Rent Allowance:
Recommendation of 7th Pay Commission:

The Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent”

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

In para 8.7.14, the Commission took note of the link between increase in HRA and increase in house rent after implementation of recommendations of 6th CPC. There was a sharp rise in the index from the first half of 2009, immediately following 6th CPC recommendations. There is likely to a similar rise in House Rent after implementation of recommendations of 7th CPC. Hence the existing percentage of House Rent may be retained at the rate of 30 percent, 20 percent and 10 percent of the new Basic Pay for Class X, Y and Z cities respectively.

Composite Transfer and Packing Grant (CTG)

Recommendation of 7th Pay Commission:
The Commission recommended that CTG should be paid at the rate of 80 percent of last month basic’s 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.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
As the labour charges and cost of packing materials are continuously rising, the CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay.

Reimbursement of staying accommodation charges:
Recommendation of 7th Pay Commission:
The commission made flowing recommendations:

Level	Level Ceiling for Reimbursement (Rs.)
14 and above	7500
12 and 13	4500
9 to 11	2250
6 to 8	750
5 and below	450

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. The self- certified claim should clearly indicate the period of stay, name of dwelling, etc. The ceiling for reimbursement will further rise by 25 percent whenever DA increases by 50 percent. 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.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
The main objective of the Audit Department is to carry out Audit function which entails long periods of stay out of headquarters. Consequently, officials at pay level 5 to 11 have to visit small towns (at Block/Sub-division level). For such places, as per recommendations of the 7th CPC, officials of pay level 8 and below will be entitled to the claim without production of vouchers (ie. against self-certified claim only), where as officials of the pay level 9 and above will have to produce vouchers for the similar claim.

To eradicate such anomalous situation, it is submitted that claims, as admissible upto pay level 8, may be paid without production of vouchers against self-certified claim to all pay level officials.

Reimbursement of travelling charges:
Recommendation of 7th Pay Commission:
The commission made following recommendations:

Level	Level Ceiling for Reimbursement (Rs.)
14 and above	AC Taxi charges up to 50 km
12 and 13	Non-AC Taxi charges up to 50 km
9 to 11	Rs. 338 per day
6 to 8	Rs. 225 per day
5 and below	Rs. 113 per day

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.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
In the same analogy, as mentioned against reimbursement of staying accommodation charges above, it is submitted that claims, as admissible upto pay level 8, may be paid without production of vouchers against self-certified claim to all pay level officials.

Family Planning Allowance:-
Recommendation of 7th Pay Commission:
The Pay Commission has recommended to abolish the Family Planning Allowances

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
This is an incentive for promoting small family norms and therefore, it needs to be continued.

Interest free advances:
Medical Advance:
Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of Medical Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
As per the existing practice, medical advance is paid to an employee to the extent of 90% of the estimated cost of treatment in case of treatment of self and dependents. Cost of treatment for illness particularly of critical/life threatening ailments, such as heart transplant/ cancer/ kidney transplant etc., even under CGHS rules, is extremely expensive. It is also pertinent to note that many hospitals even in emergent situations insist on advance payment before commencing treatment/surgery. It is very difficult for a low paid employee such as MTS/LDC/UDC etc or even for group ‘B’ and ‘A’ officers to make available large amounts required for medical treatment. Without medical advance, an official will have great difficulty in getting proper/appropriate medication.
Therefore, it is submitted that medical advance may be continued with as per existing practice.

TA Advance:
Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of TA Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
The main function of IA &AD is auditing of Central/State Government/ PSUs etc. These auditee units are spread across the states down to the block/Panchayat level. In order to discharge audit responsibility, touring is a continuous requirement. It is not an occasional tour for short period, expenditure of which can be met out by the individual and reimbursement claimed subsequently. The officials have to be on tour continuously for upto a quarter (i.e 03 months) or even more.

For an official at pay level 6(Senior Auditor), as per the recommendations of the 7th CPC, the tour allowance for a day works out to Rs. 1770/- (Rs. 750 for accommodation+225 for travelling +Rs. 800 for food bills) and for a month it would be Rs. 53250/-. Besides, he has to incur expenditure for to and fro (i.e Hqrs. to field office and back) train/ bus fare. Monthly salary of a pay level 6 employee, as per recommendations of 7th CPC is Rs. 35400/-. As is clearly brought out, the likely monthly expenditure on tour will be significantly more than the employees’ monthly salary.

Therefore, advance is necessary to defray tour expenditure for performing official duties. This will create huge administrative issues in the department and adversely impact the Audit functions.
In view of the above, TA Advance, requires to be continued and paid as per extant provisions.

LTC Advance:
Recommendation of 7th Pay Commission:

The pay Commission has recommended abolition of LTC Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

Under LTC facility the expenses incurred on travel to visit the destination is reimbursable. Advance upto 90% of expenses on travel to visit the destination place is admissible. This amount serves as great help to the employees to undertake the journey in arranging train/air tickets. Without this advance, the employees will find it difficult to purchase train/air tickets for his family Besides travelling expenses, an official has to incur expenditure on account of Boarding and lodging/local travel also.

As per the recommendation of 7th CPC, officials of pay level 05 to 08 are entitled to travel by train. The travel tickets for family of four will cost more than Rs. 18000/- for a journey from Delhi to Thiruvananthapuram. Further, for level 9 and above the return tickets in economy class for the same destination i.e. Delhi to Thiruvananthapuram will cost more than Rs. 2 lakh.

A government official cannot afford such a huge amount to spent upfront for performing journey for availing home town LTC or All India LTC. Hence LTC advance is required to be continued as per extant provisions.

Bicycle Advance, Warm Clothing Advance:
Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of these Advances.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

These advances may continued to be paid as per existing rules as these are admissible only to low paid employees upto Grade pay of Rs. 2800 /- (Level 5)
Festival advance, advance in the event of natural calamities like Flood, Drought, Cyclone etc.

Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of these Advances.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
These advances may continue to be paid as per existing rules as these interest free advances are payable to Group ‘B & C’ employees as a welfare measure.
Advance of TA to a family of a deceased Govt. employee

Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of this Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
This advance may continue to be paid as per existing rules as this helps the family of a deceased Govt. employee to cope with immediate expenses for travel to their place of settlement.

Interest Bearing Advances:-
Motor Car/Motor Cycle Advance.
Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of this Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
The Pay Commission has abolished the Motor Car/Motor Cycle Advance on the plea that there are several schemes available in market. There are several schemes in the markets for House Building Advance also. However, the Pay Commission has not only recommended to continue with HBA but also proposed to increase the ceiling. Therefore, the plea of the commission to discontinue MCA on the basis that schemes for purchase of vehicles are available in the market does not hold good.

Further, several documentation/guarantees are required for seeking the said advances from the market. As it is convenient and safe for a Government Servant to avail such advances from the office without any hassles, these interest bearing advances may be continued as per the extant provisions.

Fixed Medical Allowance (FMA) to Central Government Pensioners
Recommendation of 7th Pay Commission:
The Commission has maintained status quo of the Fixed Medical Allowance which is presently paid @ Rs. 500/- per month.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
The costs have increased for medicines, consultations fees and Pathological Tests required for day to day medical treatment. This has risen at a much steeper rate than that of the General Price Index. A large number of pensioners are residing in remote areas or villages having no access to CGHS dispensaries and as such are wholly dependent on the paltry amount of Fixed Medical Allowance for day to day treatment.. Therefore it needs to be revised to at least Rs. 2000/- per month.

Modified Assured Career Progression Scheme (MACPS) :
Recommendation of 7th Pay Commission:
Assured Career Progression was introduced in 1999 with a view to grant at least two financial up gradations at an interval of 12 and 24 years where officials are stagnating for want of promotion. It was further modified to 03 financial up gradations on the recommendations of the 6th CPC. However, the 7th CPC recommended continuing with the same without any change. Also the bench mark has been increased from ‘Good’ to ‘ Very Good’

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
There should be at least four financial upgradations in entire service career of an employee at regular interval of 8 years. Hence, the MACPS may be granted to an employee after completion of 8, 16, 24 and 32 years of service.

Further, the bench mark for financial up gradation may be continued as per the existing practice – i.e. the bench mark prescribed for the post for promotion.

Transport Allowance (TPTA)
Recommendation of 7th Pay Commission:

The 7th CPC has just revised the Transport Allowance by merging 125% of DA with the existing rate of transport allowance. The revised rates are as mentioned below:

Pay level	Proposed  (Higher TPTA Cities)	Proposed  (Other TPTA Cities)
9 and above	7200+DA	3600 +DA
3 to 8	3600+DA	1800 + DA
1 and 2	1350+DA	900 + DA

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
The following is proposed for the revised Transport Allowance (TPTA)

Pay level	Proposed  (Higher TPTA Cities)	Proposed  (Other TPTA Cities)
9 and above	10000 + DA	5000 + DA
3 to 8	5000 + DA	2500 + DA
1 and 2	2500 + DA	1250 + DA

Child Care Leave (CCL):
Recommendation of 7th Pay Commission:
The 7th CPC has proposed that CCL should be granted at 100 percent of the salary for first 365 days, but at 80 percent of the salary for the next 365 days. However, CCL has been extended to single parent also.
What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
It is proposed that the CCL be paid at 100 percent of salary for the entire period.

Children Education Allowance (CEA):
Recommendation of 7th Pay Commission:
The Commission has recommended CEA @ Rs. 2250/- per month and Hostel Subsidy @ Rs. 6750/- per month.
What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
Keeping in view the steep rise in tuition fees, cost of stationery, Books, Uniform etc. the CEA and Hostel Subsidy may be increased @ Rs. 3000/- and @ Rs. 8000/- per month respectively.

Special Casual Leave (SCL):
Recommendation of 7th Pay Commission:

SCL is granted to employees to cover their absence from duty for various occasions like sports events, cultural activities, participation in Republic Day Parade, voluntary blood donation, Trade Union meetings, etc. Full pay is granted during SCL and it can be sanctioned with retrospective effect also.
The Pay Commission has expressed its concern at the widespread use of SCL as a means of getting away from duty. However, because of the extensive scope and case specific nature of this leave, no concrete recommendations have been made.
It has suggested that the government may, however, consider the following: (a) Review the purposes for which SCL is presently granted.

(b) Limit the number of purposes for which an employee can be granted SCL in a year.

(c) Limit the total number of days that an employee can be granted SCL in a year.
What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
Since SCL is granted to employees to cover their absence from duty for various occasions like sports events, cultural activities, participation in Republic Day Parade, voluntary blood donation, Trade Union meetings/ casting votes in their constituency, it may be continued to be granted as per existing practice.

Source: Indian Accounts and Audit Department

7th Pay Commission arrears to be paid in August

7th Pay Commission arrears to be paid in August

New Delhi: The central government is going to start payment of salaries to its 48 lakh officials and employees according to 7th Pay Commission award from July and six months’ arrears are to be paid in August.

As per official calculation, no huge amount will be required for the payment of arrears.

The government in its annual budget has provisioned Rs 70,000 crore to meet the demand for implementation of 7th Pay Commission for central government employees which will take effect from January 1, 2016, while the allowances would be paid from July 1, 2016.

Basic salary of central government employees is likely to be tripled under the 7th Pay Commission award with employees in the lower rung getting the highest percentage of raise.

In the highest grade, basic salary is likely to rise around to Rs 2,70,000 to Rs 2,50,000 and in the lowest grade to Rs 21,000.

In June end, the cabinet is likely to approve the new pay scales for central government employees after considering report of the 7th Pay Commission, led by Justice A K Mathur, and the report of the 13 member Empowered Committee of Secretaries headed Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission, which was set up in January.

The officials familiar with the developments told The Sen Times that the Finance Minister Arun Jaitley has not been under pressure to meet the demand as he has surplus money in the national exchequer.

“We have provisioned for around 60-70 per cent of the total burden that was talked about,” the officials said adding about Rs 70,000 crore has been provided in the Budget.

The government will issue a circular in respect of online pay-fixation, which will reduce hassles as doing the same manually is both time-consuming and harassing. Pay fixation is a mandatory procedure for getting new pay and perks, the officials told us.

“We’re at the for issuing the notification and one more month will be required to issue after cabinet nod, so we hopefully say that central government employees will get new pay and arrears in July and August respectively,” a source close to the developments told The Sen Times.

TST

Increase in Bonus Eligibility and ceiling – Advisory Note by Defence

Increase in Bonus Eligibility and ceiling – Advisory Note by Defence

Increase in Bonus Eligibility and ceiling – Advisory Note by  DGR advisory of Defence on Payment of Bonus to all Guards & Other Staff employed by DGR

Defence circular on increase of bonus to guards based on the Payment of Bonus (Amendment) Bill, 2015

ADVISORY ON BONUS

The Payment of Bonus (Amendment) Bill, 2015 notified : Increase in the Eligibility Limit under clause (13) of Section 2 and Calculation Ceiling under Section 12 of the Payment of Bonus Act 2015

1. The Payment of Bonus (Amendment) Bill, 2015 was passed by the Parliament in the just concluded Winter Session of the Parliament. The Payment of Bonus (Amendment) Act, 2015 has been published in the Gazette of India, Extraordinary on 1st January, 2016 as Act No.6 of 2016. The provisions of the Payment of Bonus (Amendment) Act, 2015 shall be deemed to have come into force on the 1st day of April, 2014.

2. The Payment of Bonus (Amendment) Act, 2015 envisages enhancement of eligibility limit under section 2(13) from Rs.10,000/- per month of Rs. 21,000/- per month and Calculation Ceiling under section 12 from Rs.3500 to Rs.7,000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher. The Payment of Bonus (Amendment) Act, 2015 also mandates previous publication of draft subordinate legislations, framed under the enabling provisions under the said Act, in the Official Gazette for inviting objections and suggestions before their final notification.

3. The Government has been receiving representations from trade unions for removal of all ceilings under the Payment of Bonus Act, 1965. It is also one of the demands made by them during the country-wide General Strike held in February, 2013 and September, 2015. As the last revision in these two ceilings were made in the year 2007 and was made effective from the 1st April, 2006, it was decided the Government to make appropriate amendments to the Payment of Bonus Act, 1965.

4. These changes in the Payment of Bonus Act, 1965 will be benefit thousands of work force.

(Gangesh Kumar)
Commodore
Principal Director (Employment)
Dte Gen Resettlement
Ministry of Defence
New Delhi – 110066

File : 2112/SA/Bonus/Emp
Date : 24 Feb 16,
Place : New Delhi

Download Defence circular dated 24.02.2016

7th Pay Commission Latest News

7th Pay Commission Latest News – PMO keen on 7th CPC Salary to be based on Inflationary Trend – Reasonable expectations of central government employees will be met.

The Central government has hardly been insensitive to the reasonable expectations of central government employees while announcing salary hikes in pay commissions. The same appears in the case of the 7th Pay Commission as well.

The Prime Minister’s Office is keenly awaiting the final touch up to the 7th Pay panel’s recommendations, and is keen that inflationary trends be kept in perspective while finalising the salary structure of the government employees.

The trade unions, while protesting the 7th Pay Panel’s recommendations, said that the proposed 7th Pay Commission hike was the lowest in many decades and not in sync with inflation.

Other than the pressure of trade unions, the results of the Assembly election in five states, West Bengal, Assam, Tamil Nadu, Kerala, Pondicherry, are likely to have an influence on the final pay out.

The notification towards implementation of the seventh pay commission will be announced only after the result of the elections. If the mandate goes totally in favour of the Opposition, the government will be under greater pressure to keep the dissatisfaction related to salalry hike in check.

Even other wise, the government would like to nip the popular opinion building up that the current government is apathetic to the needs of common man.

The two earlier policy decisions on the proposed EPF changes and their subsequent rollback showed government in a bad light.

Source: Zee News

Entitlement of various types of residential accommodations based on the revised Pay Scales recommended by 6th CPC

NFIR
National Federation of Indian Railwaymen

No. II/23/Part II

Dated: 13/05/2016

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,
Sub: Entitlement of various types of residential accommodations based on the revised Pay Scales recommended by 6th CPC-reg.

Ref: (i) NFIR's PNM Item No. II/2014.
(ii) NFIR's letter No. II/23/Part II dated 08/04/2016.

During the course of discussions on item No. I l/2014 in the PNM meeting held with the Railway Board on 08th/09th October 2015, the Official Side stated that as per entitlement of Government accommodation applicable to Central Government employees as notified by the .Ministry of Urban Development the entitlement of employees having Grade Pay Rs. 1800/- is also a Type-I quarter. It was further stated that modification of the entitlement of employees in Grade Pay 1800/- from Type-I to Type-II is not in conformity with MOUD's Notification on the matter.

In order to examine the issue in detail and to respond further, Federation desires to have a copy of Notification issued by the Ministry of Urban Development.

NFIR, therefore, requests the Railway Board to provide copy of the notification of MOUD early.

Yours faithfully, 

(Dr. M. Raghavaiah)

Copy to the General Secretaries of affiliated Unions of NFIR.
Media Centre/NFIR.
File No. II/20l4 (PNM).

Original Circular

Empowered Committee for Running Allowance in the 7th CPC Pay Structure

Federation is for continuing the pay elements 30% and 55% of pay which are in vogue since the time of 4th CPC as far as running allowance is concerned without any dilution even when 7th CPC Pay Matrix levels are to be implemented.

 Empowered Committee for Running allowance in 7th Pay Commission Pay Structure

Railway Board has constituted Empowered Committee for Running Allowance in 7th Pay Commission Pay Structure – NFIR urges Railway Board to finalise Running Allowance related issues after due negotiations with Railway Federations soon

NFIR 

National Federation of Indian Railwaymen

No.IV/RSAC/Conf./Part VI

Dated: 11/05/2016

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub: Empowered Committee for Running Allowance in the 7th CPC Pay Structure-reg.
Ref: Railway Board’s order No. ERB-U2016/23/1 dated 05/05/2016.

The Railway Board has since issued an order dated 05/05/2016 constituting Empowered Committee for Running Allowance in the 7th CPC Pay Structure. According to Board’s letter, ED/PC-I, Railway Board shall be the Convener of the Empowered Committee and five EDs of different directorates shall function as its members. In this connection, NFIR desires to convey that pursuant to bipartite agreement reached on the report of the Running Allowances Committee, 1980, the running allowance eligibility criteria, pay elements for various poses, ALK etc., were decided by the Railway Ministry in the year 1981.

With the implementation of 6th CPC pay structure (Pay Band & Grade Pay), a number of aberrations have however cropped up and all those issues were raised by NFIR in different fora. The issues were also discussed in the Fast Track Committee meetings, besides PNM and DC/JCM meetings, but unfortunately, there has been no finality till now. In the full Board meeting chaired by CRB on 7th February 2014 and in the Fast Track Committee meetings, it was decided that the running staff issues need to be dealt in the joint committee and accordingly joint committee was constituted.

Although the joint committee met twice, the issues remained unresolved. Now that the Railway Board has constituted Empowered Committee in the wake of 7th CPC report presently under consideration of the Government, the NFIR urges upon the Railway Board that the issues which are pending before the Joint Committee should be got finalized quickly. Thereafter there should be formal meetings with the Federations for discussing the new issues which may arise consequent upon the decision for implementation of VIIth CPC Pay Matrix levels. In this context, the Federation wants to remind the Railway Board that the pay elements 30% and 55% of pay which are in vogue since the time of 4th CPC should be continued without any dilution even when 7th CPC Pay Matrix levels are to be implemented. Federation hopes that the Railway Board would take note of earlier agreements reached with the Federations for ensuring that the same are not deviated.

Yours faithfully 

(Dr.M.Raghavaiah)

General Secretary

Download NFIR letter No.IV/RSAC/Conf./Part VI dated 11.05.2016 

7th Pay Commission – President NMC urged PM to Personally Intervene and Secure the Interests of the Salaried Class

President of the National Mazdoor Conference (NMC) Subash Shastri today expressed deep concern over the continued delay over non issuance of notification regarding the implementation of 7th Pay Commission recommendation till date.

7th Pay Commission – President NMC urged PM to Personally Intervene – Shastri urged Modi to liberally finance the States Governments as well so that the 7th Pay Commission recommendations are implemented simultaneously by the Centre as well as States.


President of the National Mazdoor Conference (NMC) Subash Shastri today expressed deep concern over the continued delay over non issuance of notification regarding the implementation of 7th Pay Commission recommendation till date.

In a memorandum sent to Prime Minister, Shastri has appealed him to immediately issue the said notification after review by empowered committee under expenditure secretary.

Shastri stressed upon removal of ambiguity as the issue is causing lot of hardships for salaried class and pensioners also.

“It is a cause of concern that delays in submitting its report by the committee is creating doubt in the minds of crores of employees both Centre/State Governments as the recommendations of 7th Pay Commission were to be implemented with effect from January 1, 2016, he added.

Shastri urged Modi to liberally finance the States Governments as well so that the 7th Pay Commission recommendations are implemented simultaneously by the Centre as well as States.

He urged PM to personally intervene and secure the interests of the salaried class. Shastri also appealed to raise Income Tax sealing to Rs 5 lac as the salaried class is finding it difficult to cope with increased inflation and rising costs.

Shastri reminded that NDA Government at Centre was voted to power by the urban voters of which the salaried class of Government sector formed the bulk force.

He stressed upon the need to issue notification regarding the amount of wages of daily rated workers at National level to be raised to Rs 10,000 per month as has already been principally agreed to by the Centre Government.

Source: Daily Excelsior

7th Pay Commission – 29% Central Government Employees to Retire in 10 years

“The Commission notes that losing experienced high-level personnel entails unquantifiable costs as new recruits will require training and on-the-job skills”.

7th Pay Commission – 29% Central Government Employees to Retire in 10 years – The textiles ministry has the highest proportion of employees (75%) in the 50-60 age group, followed by the coal (64%) and urban development (62%) ministries.

One of the chief problems in reforming India’s bureaucracy is that it is a powerful pressure group, which does not like to see a drop in its influence or a drop in its numbers. Now, a rare opportunity presents itself.

Of 3.3 million civilian central-government employees at the beginning of April 1, 2014, nearly one million (around 29%) are in the age group of 50-60 years, according to data released by the 7th Pay Commission recently.

“This is a ready pointer to the number of retirements that would take place in the next ten years,” said the report, running into nearly 900 pages. “The Commission notes that losing experienced high-level personnel entails unquantifiable costs as new recruits will require training and on-the-job skills. At the same time it presents ministries/departments the opportunity to align their personnel requirement in line with their current and future challenges.”

That observation is in line with a frequently mentioned need for administrative reform, which could include bringing in professionals from outside government, introducing performance-linked salaries and paying higher salaries to fewer employees.

“Successive governments have been guilty of turning a blind eye to administrative reform without which economic reform will not have its desired effect,” former cabinet secretary KM Chandrasekhar wrote in a column in The Economic Times. “The greatest obstacle to ease of doing business is administrative incapacity and, to this, governments traditionally pay no heed. It is time we brought administrative reform to the top of the governmental agenda and create systems that ensure efficiency and accountability.”

IndiaSpend’s analysis of the staffing of government departments and numbers of those facing retirement reveals the opportunities that exist in each.

The Pay Commission decides salaries and incentives for central-government employees. The Commission, which is constituted once in every 10 years, is also considered to be the base to decide salaries for state government employees.


“A central-government employee is defined as all persons in the civil services of the Central Government or holding civil posts under that government and paid salaries out of the Consolidated Fund of India. This, however, does not include such persons appointed to serve Parliament or the Union Judiciary,” the report said.

Here are some departments that have a heavy concentration of employees in the 50-60 age group:

Ministries With Experienced Personnel

Ministry	Personnel (overall)	Personnel (ages 50-60)	Personnel aged 50-60 as % of all personnel
Textiles	3,095	2,328	75
Coal	305	196	64
Urban Development	30,665	18,962	62
Petroleum & Natural Gas	230	138	60
Science & Technology	6,680	3,787	57
Heavy Industry	246	138	56
New & Renewable Energy	187	97	52
AYUSH	164	84	51
Power	1,044	523	50

The textiles ministry has the highest proportion of employees (75%) in the 50-60 age group, followed by the coal (64%) and urban development (62%) ministries.

Among central-government employees, 22.23% are in the 20-30 age group, 22.28% in the 30-40 age group and 26.1% people in the 40-50 age group.

Age Profile of Central Government Employees

•     50 to 60 years – 947,586
•     40 to 50 years – 860,708
•     30 to 40 years – 734,689
•     20 to 30 years – 732,902
•     Others – 21,537

While the sanctioned strength of central-government employees is more than four million, no more than 3.3 million positions are filled, indicating a vacancy of 744,000 positions or 18%.

Indian Railways – one of the world’s largest employers with more than 1.3 million – has the most vacant posts, 235,000 followed by the defence ministry (civil) at 187,000, finance ministry (over 80,000) and home ministry (over 69,000).

The government recruited 857,764 people between 2006 and 2014 – an annual recruitment of only 100,000 people every year.

During the years 2012 to 2017, India’s labour force is projected to increase by 44.6 million, which is an average annual increase of more than 8.9 million. “This suggests that the Central Government is at best a marginal source for employment generation,” said the Pay Commission report.

The recommendations of the 7th Pay Commission are likely to cost the exchequer more than Rs 1 lakh crore ($15 billion) in financial year 2016-17, an increase of 23% over existing salaries and allowances.

The 7th Pay Commission has recommended a minimum pay of Rs 18,000 per month — for peons, clerks and some police head constables — and an annual increment of 3%. It has also recommended doubling the ceiling on gratuity (lump sum paid based on years of service) to Rs 20 lakh from the current Rs 10 lakh, enhanced medical insurance and pension schemes.

Source: Business Standard

7th Pay Commission recommended that Family Planning Allowance should be abolished.

7th CPC has recommended for abolition of Family Planning Allowance since the level of awareness regarding appropriate family size has gone up among the government servants. 7th CPC is of the view that many benefits relates to children, viz., Children Education Allowance, Maternity Leave, LTC, etc., are available now.

7th Pay Commission recommended that Family Planning Allowance should be abolished.

7th Pay Commission has proposed for abolishing Family Planning Allowance. Analysis and Recommendations of 7th Pay Commission on FPA is as follows:

Family Planning Allowance (FPA) is granted to Central Government employees as an encouragement to adhere to small family norms. The existing rates are as under:

Grade Pay	Family Planning Allowance
1300-2400	210
2800	250
4200	400
4600	450
4800	500
5400	550
6600	650
7600	750
8700	800
8900	900
>10,000	1000

There are demands to make it equal to one increment. Representations have also been received requesting that the allowance should be double for those employees who adopt family planning norms after just one child.

Analysis and Recommendations

The Commission recognizes the fact that most of the benefits related to children, viz., Children Education Allowance, Maternity Leave, LTC, etc., are available for two children only. Moreover the level of awareness regarding appropriate family size has also gone up among the government servants. Hence, a separate allowance aimed towards population control is not required now. Accordingly, it is recommended that Family Planning Allowance should be abolished.

Central Government Employees now get LTC advance ahead of 4 months of journey

Central Government Employees now get LTC advance ahead of 4 months of journey

Relaxing norms, the government today allowed central government employees to take advance four months ahead of commencing journey under Leave Travel Concession (LTC) rules.

A government employee gets reimbursement of tickets for to and fro journey, in addition to 10 days leave encashment, when he avails LTC.

The existing rules allow an employee to draw advance for LTC journey for himself and his family members 65 days before the proposed date of the outward journey.

Since, the Ministry of Railways has decided to increase the advance reservation period for booking accommodation in trains from 60 to 120 days (excluding the date of journey) with effect from April 1 2015, the time-limit for drawable of LTC advance by the government servants may be increased from 65 days (i.e. two months and 5 days) to 125 days (i.e. four months and five days) in case of journey by train, the Office Memorandum F.No.31011/8/2015-Estt (A.IV) issued today by DoPT said.

The cases where the LTC journey is proposed to be undertaken by other modes of transport viz air, sea or road, the time-limit for drawing LTC advance shall remain 65 days only, it said.

In all the cases, where an advance is drawn for the purpose of availing LTC, it will be mandatory for the government servant to produce the outward journey tickets to the competent authority within ten days of drawable of advance in order to verify that he has actually utilised the amount to purchase the tickets, the order said.

There are about 50 lakh central government employees at present.

In another order, employees have been asked to compulsorily avail catering facilities provided by the Railways on Rajdhani and Shatabdi trains and the cost is included in the ticket.

The move comes after several references were received seeking clarification regarding the admissibility of catering charges charged by the Railways in respect of the rail journey performed by Rajdhani or Shatabdi on LTC.

The matter has been examined in consultation with Department of Expenditure, Ministry of Finance and it is clarified that if the government servant has to compulsorily avail the catering facility and the cost is included in the rail fare for Rajdhani, Shatabdi or Duronto trains, the fare charged shall be reimbursable in full as per the entitlement or eligibility of the government servant, the order added.

Inputs via PTI