7th Pay Commission Recommendations, Salient Features

7th Pay Commission Recommendations, Salient Features

♦ Report consist 900 pages

♦ Pay Panel recommends 16% Pay hike

♦ Garde Pay and Band Pay system abolished

♦ Minumum Salary 18000

♦ Apex pay scale 225000

♦ Cabinet secreatry Pay 250000

♦ Annual increment 3%

♦ 23.5% hike in pay and allowance together

♦ Fitman formula 2.57%

♦ Group insurance increased to 50 lakhs

♦  HRA :  24% ,16% and 8%  of the Basic Pay for Class X, Y and Z cities respectively

♦ 52 Allownances abolished

♦ 36 Allowances submerged

1. Minimum Pay

Minimum Pay which was Rs. 7000 in the 6th Pay Commission has been fixed now at Rs. 18,000/-. A Multiplication factor of 2.57 has been used in arriving at this minimum pay.

2.Maximum Pay:

Maximum Pay of ₹2,25,000 per month for Apex Scale and ₹2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

3. Fitment Formula:

7th Pay Commission has formulated fitment formula as far as existing employees are concerned as 2.57. For instance, 7CPC pay of the employees who are presently in the pay band of 5200 – 20200 with grade pay of Rs. 1800, will be calculated by multiplying the factor of 2.57 with their existing basic pay (pay in pay band + grade pay)

4. Date of Effect of 7th Pay Commission Pay:

7th pay Commission pay will be effective from 1st January 2016.

5. Annual Increment:

7th Pay Commission has recommended for Uniform Annual Increment of 3%

6. Modified Assured Career Progression (MACP):

Existing Performance benchmarks for MACP is “Good”. 7th Pay Commission proposes that it should be “Very Good”. 10 years, 20 years and 30 years Slab continues.

The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service.

7. Military Service Pay (MSP):

The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows:

	Present	Proposed
Service Officers	₹6,000	₹15,500
Nursing Officers	₹4,200	₹10,800
JCO/ORs	₹2,000	₹ 5,200
Non Combatants (Enrolled) in the Air Force	₹1,000	₹ 3,600

8. Short Service Commissioned Officers:

Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. They will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute.

Lateral Entry/Settlement: The Commission is recommending a revised formulation for lateral entry/resettlement of defence forces personnel which keeps in view the specific requirements of organization to which such personnel will be absorbed. For lateral entry into CAPFs an attractive severance package has been recommended.

Headquarters/Field Parity: Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.

9. Cadre Review:

Systemic change in the process of Cadre Review for Group A officers recommended.

10. Allowances:

The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.

11. Risk and Hardship Allowance:

Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance.

12. House Rent Allowance:

Population of Cities/Towns	Class of Cities/Towns	HRA rates as % of Basic Pay (including MSP and NPA)
50 lakh and above	X	24
50–5 lakh	Y	16
Below 5 lakh	Z	8

Transport Allowance:

Pay Level	Higher TPTA Cities (₹ pm)	Other Places (₹ pm)
9 and above	7200+DA	3600+DA
3 to 8	3600+DA	1800+DA
1 and 2	1350+DA	900+DA

The following table would be useful to equate the existing pay band / Grade pay structure with the New Pay level

Levels as per the Pay Matrix

Existing Pay Bands	Existing levels of Grade Pay	Available for*	New Levels
PB-1	1800	C	1
	1900	C	2
	2000	C,D	3
	2400	C	4
	2800	C,D	5
PB-2	3400	D	5A
	4200	C,D	6
	4600	C,D	7
	4800	C,D	8
	5400	C	9
PB-3	5400	C,D,M	10
	5700	M	10A
	6100	D	10B
	6100	M	10B
	6600	C,D,M	11
	7600	C	12
PB-4	7600	M	12
	8000	D	12A
	8400	M	12B
	8700	C	13
	8700	D	13
	8900	C	13A
	8900	D	13A
	9000	M	13B
	10000		14
HAG			15
HAG+			16
Apex			17
Cabinet Secretary, Defence Chiefs			18
*C: Civil; D: Defence; M: Military Nursing Service (MNS)

13. Advances:

All non-interest bearing Advances have been abolished.

Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to ₹25 lakhs from the present ₹7.5 lakhs.

Central Government Employees Group Insurance Scheme (CGEGIS):

The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:

Pay level	Present Insurance	Proposed Insurance	Present Monthly Deduction	Proposed Monthly Deduction
10 and above	1,20,000	50,00,000	120	5000
6 to 9	60,000	25,00,000	60	2500
1 to 5	30,000	15,00,000	30	1500

14. Health Insurance Scheme

The  Commission  strongly  recommends  the  introduction  of  health  insurance scheme for CentralGovernment employees and pensioners. In the interregnum, for the benefit of pensioners residing outside the CGHS areas, the Commission recommends that CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis. This would involve strengthening of administrative capacity of nearest CGHS centres. However, this step will go a long way in ameliorating the pending grievances of these pensioners.

The Commission recommends that the remaining 33 postal dispensaries should be merged with CGHS. The Commission further recommends that all postal pensioners, irrespective of their participation in CGHS while in service, should be covered under CGHS after making requisite subscription.

15. Fixation of Pension:

The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix.

This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent.

In the case of defence forces personnel this amount will include Military Service Pay as admissible.

Fifty percent of the total amount so arrived at shall be the new pension.

An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension.

The pensioner will get the higher of the two.

16. Gratuity

7th Pay Commission has proposed for Enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh. The Commission has also recommended that the ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.

17. Disability Pension for Armed Forces:

The Commission has recommended for reverting to a slab based system for disability element, instead of existing percentile based disability pension.

18. NPS:

7th Pay Commission has recommended for improving the present National Pension System in view of many grievances reported.

19. Leave:

Casual Leave : No Change recommended

Chile adoption Leave : No Change

Child Care Leave: Commission recommends that CCL should be granted at 100% of salary for first 365 days but at 80% for next 365 days. The Commission has also recommended for granting Child Care Leave Single Male Parents

Commuted Leave: No Change

Earned Leave : No Change with respect to encashment

Leave No due : No Change

Paternity Leave : No Change

Study Leave : No Change

20. GPF (General Provident Fund)

Status quo is recommended as far as GPF is concerned

21. Children Education Allowance:

On the whole, the Commission is of the view that quantum of CEA should be calibrated in such a manner that the main objective is met without the government entering into the field of subsidizing private education. Hence, taking into account the various items of expenditure
that are reimbursed as a part of this allowance, the following is recommended:

Component	Recommended rate	Remarks
CEA (₹ pm)	1500×1.5 = 2250	Whenever DA increases by 50%, CEA shall increase by 25%
Hostel Subsidy (₹ pm)	4500 x 1.5 = 6750 (ceiling)	Whenever DA increases by 50%, Hostel Subsidy shall increase by 25%

The allowance will continue to be double for differently abled children.

Also, the extension of scope of the allowance beyond Class XII was not accepted by 7th Pay Commission

Note : The said post is only for informative purpose only Please follow official report for cross check

Link for official report : http://vacancyalert.in/7th-central-pat-download-pdf/

7th Central Pay Commission Report, Download, 7cpc report, Download here

7th Central Pay Commission Report, Download

Commission to submit report on Nov 19th 2015 at 19:30 hours – conformed by 7cpc official site

Click here for download 7CPC Report

Grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) to the Central Government Employees for the year 2014-15

Grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) to the Central Government Employees for the year 2014-15

No.7/24/2007/E III (A)

Government of India

Ministry of Finance

Department of Expenditure

E III (A) Branch

New Delhi, the October 16, 2015

OFFICE MEMORANDUM

Subject: – Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2014-15.

The undersigned is directed to convey the sanction of the President to the grant of Non-Productivity Linked Bonus (Ad-hoo Bonus) equivalent to 30 days emoluments for the accounting year 2014-15 to the Central Government employees in Groups ‘C’ and ‘D’ and all non-gazetted employees in Group ‘B’, who are not covered by any Productivity Linked Bonus Scheme. The calculation ceiling for payment of ad-hoc Bonus under these orders shall continue to be monthly emoluments of Rs. 3500/-, as hitherto. The payment of ad-hoc Bonus under these orders will also be admissible to the eligible employees of Central Para Military Forces and Armed Forces. The orders will be deemed to be extended to the employees of Union Territory Administration which follow the Central Government pattern of emoluments and are not covered by any other bonus or ex-gratia scheme.

2. The benefit will be admissible subject to the following terms and conditions:-

(i) Only those employees who were in service as on 31.3.2015 and have rendered at least six months of continuous service during the year 2014-15 will be eligible for payment under these orders. Pro-rata payment will be admissible to the eligible employees for period of continuous service during the year from six months to a full year, the eligibility period being taken in terms of number of months of service (rounded off to the nearest number of months);

(ii) The quantum of Non-PLB (ad-hoc bonus) will be worked out on the basis of average emoluments/calculation ceiling whichever is lower. To calculate Non-PLB (Ad-hoc bonus) for one day, the average emoluments in a year will be divided by 30.4 (average number of days in a month). This will thereafter be multiplied by the number of days of bonus granted. To illustrate, taking the calculation ceiling of monthly emoluments of Rs. 3500 (where actual average emoluments exceed Rs. 3500/-, Non-PLB (Ad-hoc Bonus) for thirty days would work out to Rs. 3500×30/30.4=Rs.3453.95 (rounded off to Rs.345%)

(iii) The casual labour who have worked in offices following a 6 days week for at least 240 days for each year for 3 years or more (206 days in each year for 3 years or more in the case of offices observing 5 days week), will be eligible for this Non-PLB (Ad-hoc Bonus) Payment. The amount of Non-PLB (ad-hoc bonus) payable will be (Rs.12oox30/30.4 i.e.Rs.1184.21 (rounded off to Rs.1184/). In cases where the actual emoluments fall below Rs.1200/- pm, the amount will be calculated on actual monthly emoluments.

(iv) All payments under these orders will be rounded off to the nearest rupee.

(v) The clarificatory orders issued vide this Ministry’s OM No.F.14 (10)-E. Coord/88 dated 4.10.1988, as amended from time to time, would hold good.

3. The expenditure on this account will be debitable to the respective Heads to which the pay and allowances of these employees are debited.

4. The expenditure to be incurred on account of Non-PLB (Ad-hoc Bonus) is to be met from within the sanctioned budget provision of concerned Ministries/Departments for the current year.

5. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India.

(Amar Nath Singh)

Deputy Secretary to the Govt. of India

Source : http://finmin.nic.in/the_ministry/dept_expenditure/notification/bonus/16-10-2015.pdf

DA Order July 2015 – Finmin issued orders for the payment of DA at 119% from 1.7.2015

DA Order July 2015 – Finmin issued orders for the payment of DA at 119% from 1.7.2015

No.1/2/2015-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated: 23rd September, 2015.

OFFICE MEMORANDUM

Subject: Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.7.2015

The undersigned is directed to refer to this Ministry’s Office Memorandum No.1/2/2015-E-II (B) dated 18th September, 2015 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 113% to 119% with effect from 1st July, 2015.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No. 1(3)/2008-E-II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.

4. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

5. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

Sd/-
(A. Bhattacharya)
Under Secretary to the Government of India

Source : http://finmin.nic.in/the_ministry/dept_expenditure/notification/da/da01072015.pdf

Union Cabinet Approved 6 percent hike in DA from July 2015

Union Cabinet Approved 6 percent hike in DA from July 2015

Press Information Bureau
Government of India
Cabinet

09-September-2015

Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.7.2015

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Pensioners w.e.f. 01.07.2015. This represents an increase of 6 percent over the existing rate of 113 percent of the Basic Pay/Pension, to compensate for price rise.

This will benefit about 50 lakh Government employees and 56 lakh pensioners.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be in the order of Rs. 6655.14 crore per annum and Rs.4436.76 crore in the financial year 2015-16 (for a period of 8 months from July, 2015 to February, 2016).

Source : PIB