Wednesday, April 2, 2014

Should the GRADE PAY STRUCTURE continue in the 7th CPC too?

Once every 10 years, the Central Government revises the pay grades of its employees. It is common knowledge that the Cabinet had ordered the formation of the 7th CPC (CENTRAL PAY COMMISSION) and has also given its approval to the TERMS OF REFERENCE. 

The Central Government has, until now, constituted six CPCs. The 6th CPC has the distinction of having introduced the GRADE PAY STRUCTURE. Until then, there was only the PAY SCALE. It was the 6th CPC that changed it to PAY BAND, GRADE PAY and PAY IN THE PAY BAND. It was then said that the reconstitution was made to reduce the number of categories in the PAY SCALE. They also explained how GRADE PAY was calculated. 

Until then, it was difficult to immediately deduce an employee’s BASIC PAY. It was often explained on the Government’s behalf that, after the 6th CPC, the BASIC PAY would amount to the sum of GRADE PAY and PAY IN THE PAY BAND.  

Since the difference between each GRADE PAY was not uniform, the employees came under lot of stress. Between 1900 and 2000, the difference was just Rs. 100. But, after Rs. 2800, the next GRADE PAY was Rs. 4200. These differences continue to remain unacceptable. 

‘GRADE PAY HIERARCHY’ was introduced as a crowning feature of it all. For years, each CENTRAL GOVERNMENT DEPARTMENT has its own ‘PROMOTIONAL HIERARCHY’ in place. Promotions were given only on the basis of this sequence. Based on their PROMOTIONAL HIERARCHY, in the 5th CPC, each employee was given an ACP (ASSURED CAREER PROGRESSION). ACP is a scheme under which those who didn’t get any promotions for 12-24 years were given financial upgradations. This didn’t create any big problem. 

The 6th CPC introduced MACP (MODIFIED ASSURED CAREER PROGRESSION) in the place of ACP. A scheme was introduced to give FINANCIAL UPGRADATION to those who weren’t given any promotions in 10, 20 or 30 years. This was where the Government ordered that promotions should be given only on the basis of GRADE PAY HIERARCHY. 

The confusion that began with implementing the GRADE PAY HIERARCHY, which was common to all, instead of PROMOTIONAL HIERARCHY for promotions continues, and remains unresolved until now.

There is no doubt that most of the anomalies created after the 6th CPC related to MACP stem from the ‘GRADE PAY HIERARCHY’. Central Government employees now wonder if the ‘GRADE PAY’ method is even required in the first place. 
Source - http://www.railnewscenter.com/2014/04/should-grade-pay-structure-continue-in.html

Monday, March 3, 2014

GOOD NEWS - FINALLY MINISTRY OF FINANCE ISSUE GAZETTE NOTIFICATION FOR 7th PAY COMMISSION .





Ministry Of Finance 
(Department of Expenditure) 
RESOLUTION 
New Delhi, the 28th February,2014

No.1/1/2013-E.III(A)— The Government of India have decided to appoint the Seventh Central Pay Commission comprising the following :-

1. Chairman Justice Shri Ashok kumar Mathur 
2. Member Shri Vivek Rae 
3. Member Dr. Rathin Roy 
4. Secretary Smt. Meena Agarwal

2. The terms of reference of the commission will be as follows :-

a) To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

i. Central Government employees-industrial and non-industrial; 
ii. Personnel belonging to the All India Services; 
iii. Personnel of the Union Territories; 
iv. Officers and employees of the Indian Audit and Accounts Department; 
v. Members of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of Parliament; and 
vi. Officers and employees of the Supreme Court.

b) To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the Defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel.

c) To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d) To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.

e) To review the variety of existing allowances presently available to employees in addition to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure is so designed as to take these into account.

f) To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g) To make recommendations on the above, keeping in view: 
i. the economic conditions in the country and need for fiscal prudence; 
ii. the need to ensure that adequate resources are available for developmental expenditures and welfare measures; 
iii. the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications; 
iv. the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and 
v. the best global practices and their adaptability and relevance in Indian conditions. 
h) To recommend the date of effect of its recommendations on all the above.

3. The Commission will devise its own procedure and may appoint such advisors, Institutional Consultants and Experts, as it necessary for any particular purpose. It may call for such information and take such evidence, as it may consider necessary. Ministries and Departments of Government of India shall furnish such information and documents and other assistance as may be required by the commission. The government of India trusts the State Governments, Service Associations and other concerned will extend to the Commission their fullest cooperation and assistance

4. The Commission will have Headquarters in Delhi

5. The Commission will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

RATAN P.WATAL, Secy

Source : www.finmin.nic.in

Saturday, March 1, 2014

Cabinet Approved , Terms of Reference of 7th Central Pay Commission (CPC) केन्‍द्रीय मंत्रिमंडल ने सातवें केन्‍द्रीय वेतन आयोग की रूपरेखा को मंजूरी दे दी


The Union Cabinet today gave its approval to the Terms of Reference of 7th Central Pay Commission (CPC) as follows:-

a) To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

i. Central Government employees-industrial and non-industrial;

ii. Personnel belonging to the All India Services;

iii. Personnel of the Union Territories;

iv. Officers and employees of the Indian Audit and Accounts Department;

v. Members of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of Parliament; and

vi. Officers and employees of the Supreme Court.

b) To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the Defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel.

c) To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d) To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.

e) To review the variety of existing allowances presently available to employees in addition to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure is so designed as to take these into account.

f) To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g) To make recommendations on the above, keeping in view:

i. the economic conditions in the country and need for fiscal prudence;

ii. the need to ensure that adequate resources are available for developmental expenditures and welfare measures;

iii. the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications;

iv. the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and

v. the best global practices and their adaptability and relevance in Indian conditions.

h) To recommend the date of effect of its recommendations on all the above.

The Commission will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the 7th Central Pay Commission.

Background


Central Pay Commissions are periodically constituted to go into various issues of emoluments’ structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required.

केन्‍द्रीय मंत्रिमंडल ने आज सातवें केन्‍द्रीय वेतन आयोग की रूपरेखा को मंजूरी दे दी। इस संबंध में वेतन, भत्‍तों और अन्‍य सुविधाओं को ध्‍यान में रखकर रूपरेखा तैयार की गई है। इसमें औद्योगिक और अनौद्योगिक केन्‍द्रीय सरकार के कर्मचारी, अखिल भारतीय सेवाओं के कर्मी, केंद्रशासित प्रदेशों के कर्मी, भारतीय लेखा एवं परीक्षण विभाग के अधिकारी एवं कर्मी, रिजर्व बैंक को छोड़कर संसद अधिनियम के तहत गठित नियामक संस्‍थाओं के सदस्‍यों तथा उच्‍चतम न्‍यायालय के अधिकारियों एवं कर्मियों को शामिल किया गया है। 

वेतन आयोग भत्‍तों, सुविधाओं एवं लाभों, नकदी या गैर-नकदी राशि के संबंध में सिद्धांतों की जांच एवं समीक्षा करेगा। इसके तहत सुरक्षा बलों के सेवानिवृत्‍त कर्मियों को मिलने वाले लाभों की समीक्षा भी की जाएगी। 

वेतन आयोग सरकारी सेवा के प्रति योग्‍य लोगों को आकृषित करने के लिए वेतन ढांचा भी तैयार करेगा। इसके अंर्तगत कुशलता, उत्‍तरदायित्‍व और कार्य के प्रति जिम्‍मेदारी बढ़ाने के उपायों पर भी विचार करेगा, ताकि लोकप्रशासन प्रणाली दुरूस्‍त हो सके। इसके तहत आधुनिक प्रशासन तथा तेजी से बदलते राजनैतिक, सामाजिक, आर्थिक और प्रौद्योगिकी बदलावों की जटिल चुनौतियों का सामना करने के लिए उपाय भी किए जाऐंगे। 

मौजूदा बोनस योजना पर भी ध्‍यान दिया जायेगा और उसे कार्य-प्रदर्शन तथा उत्‍पादकता से जोड़ने पर बल दिया जायेगा। उत्‍पादकता और कार्य-प्रदर्शन की उत्‍कृष्‍टता के लिए प्रेरक योजना के बारे में वित्‍तीय मानदंड और शर्तें भी तैयार की जाऐंगी। 

सरकारी कर्मियों को इस समय जो विभिन्‍न भत्ते प्रदान किए जा रहे हैं, उनकी समीक्षा की जाएगी और इस तरह का वेतन ढांचा तैयार किया जाएगा जिसमें इन्‍हें तर्कसंगत बनाने के उपायों पर विचार होगा। इसके अलावा पेंशन और अवकाश प्राप्‍त करने पर मिलने वाले लाभों के ढांचे पर भी विचार किया जायेगा। इसके तहत इन सिफारिशों के लागू होने के पहले की किसी तिथि पर जो कर्मचारी अवकाश प्राप्‍त करेगा, उसे भी इसके अंतर्गत शामिल किया गया है। इस संबंध में उल्‍लेखनीय है कि 1 जनवरी, 2004 को या उसके बाद नियुक्‍त होने वाले केंद्रीय सरकारी कर्मचारियो को नई पेंशन नीति के दायरे में रखा गया है। इनको मिलने वाले लाभों को उपरोक्‍त सिद्धांतों के तहत विचार के लिए तय किया गया है। 

आयोग अपने गठन की तिथि से 18 महीने के अंदर अपनी सिफारिशें प्रदान करेगा। इसके निर्णय से केंद्रीय सरकारी कर्मचारियों और अन्‍य कर्मचारियों को प्राप्‍त होने वाले वेतन और भत्‍तों से लाभ प्राप्‍त होगा। 

उल्‍लेखनीय है कि केंद्रीय वेतन आयोग केंद्र सरकार के कर्मचारियों के वेतनमान, सेवा निवृत्ति के लाभ और अन्‍य सेवा शर्तों संबंधी मुदृों पर विचार करने के लिए समय-समय पर गठित किया जाता है।
Source - pib

Saturday, February 22, 2014

Defence forces to get special hearing from 7th pay panel



The armed forces are finally in for a special hearing, with the Centre likely to separately deal with issues pertaining to their service conditions and payment structures in the 7th Central Pay Commission. The Union government, however, has not accepted the demand for military representation on the pay panel.


The terms of reference for the 7th CPC, to be cleared by the Cabinet, will for the first time include a paragraph on the defence forces. It has come in response to intense lobbying by the defence ministry and the armed forces, with the latter for long complaining of a “raw deal” compared to their civilian counterparts in the fixation of salaries by the central panel.


According to the terms of reference, the pay panel will examine the salary structure and benefits, including retirement benefits, with “due emphasis on the aspects unique to these (military) personnel”. The allowances could be reviewed in view of the hardships, both in terms of operations and frequent transfers, associated with military service.


The focus on the defence forces comes in the wake of the massive unrest triggered by the 6th CPC report which led to the three Service chiefs lodging serious complaints about the recommendations.


There is another plus for the defence forces, with Justice Ashok Kumar Mathur to chair the pay commission. He has been the chairman of the Armed Forces Tribunal and the government says he is conversant with the issues related to defence forces.


Thus, while keeping a representative of the defence forces has not been accepted on the grounds that it would lead to similar demand from other specialized services, the presence of the chair is sent to indirectly meet the demand.


While the pay panel is a populist move given the vast vote base that government employees make, the defence community of 14 lakh serving and 23 lakh retired military personnel itself swells into a sizeable – albeit diffused – vote bank of around 1.5 crore people if family members are also taken into account.


The government was rattled by the widespread anger in the armed forces in 2008-2009 when they complained that successive pay panels had failed to address their long-pending pay and pension “anomalies”. Hundreds of ex-servicemen continue to protest by returning their medals even today over the failure of successive governments to implement the one-rank, one-pension principle despite it being promised by most parties in their manifestoes.


In June last year, defence minister A K Antony had written a frantic letter to PM Manmohan Singh to express alarm over the “growing discontentment” among the armed forces, which led to the constitution of a committee under cabinet secretary Ajit Kumar Seth to look into their grievances.


Source:http://articles.timesofindia.indiatimes.com/2014-02-13/india/47303843_1_pay-panel-armed-forces-tribunal-defence-forces

Thursday, February 20, 2014

Central Gov. Employee - Bonanza for central govt staff likely to the end of February

To woo central government employees ahead of the general elections, the United Progressive Alliance (UPA) government is expected to ask the Seventh Pay Commission to consider merging 50 per centdearness allowance (DA) with basic pay of employees. This will form part of the terms of reference (ToR) for the Commission, to be considered by the Cabinet this week.

According to officials, the Pay Commission’s ToR categorically states a proposal in this regard should be actively considered.

The increases will be even more appealing as the Centre is expected to increase the DA by 10 per cent to 100 per cent by the end of February. Usually, the DA is merged with basic pay when the former goes beyond 50 per cent. It is 90 per cent now, but has not been merged so far.

Assuming an employee gets Rs 100 as basic pay and Rs 100 as DA at present, the basic will rise to Rs 150, even if 50 per cent allowance is merged. . A higher basic pay will also impact the house rent allowance (HRA) of employees as it is calculated at 30 per cent of the basic pay for central government employees.

DA is linked to the consumer price index (industrial workers). The government uses CPI-IW data of the past 12 months to arrive at a quantum for calculating any DA hike. The allowance will be announced from January. As such, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter. The average inflation during this period had stood at 10.66 per cent.

Earlier this month, the government had constituted the Pay Commission under the chairmanship of former Supreme Court Judge Ashok Kumar Mathur.

The other members of the panel are Petroleum Secretary Vivek Rae (full-time member), National Institute of Public Finance and Policy Director Rathin Roy (part-time member) and Officer on Special Duty in the Expenditure Department Meena Agarwal (Secretary).

The Commission’s recommendations would be implemented from January 1, 2016, officials said. However, it may recommend interim relief as well, they added.

The Commission’s recommendations will directly benefit almost five million employees and three million pensioners. Employees of state governments, which will adopt the recommendations of the 7th Pay Commission will also benefit.

Some officials said the Cabinet is also expected to consider another proposal to modify the Prime Minister’s 15-point programme for minorities, which will enable allocation of at least 15 per cent of the total funds for welfare of minorities in major programmes such as National Rural Health Mission, Rashtriya Mahila Shiksha Abhiyan, Employment and Skill Development.

Source - business-standard

Tuesday, February 4, 2014

GOOD News - Prime Minister Approves Composition of 7th Central Pay Commission of committee

Prime Minister Approves Composition of 7th Central Pay Commission Under the Chairmanship of Justice Ashok Kumar Mathur, Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal

The Finance Minister Shri P. Chidambaram has issued the following statement:

           “The Prime Minister has approved the composition of the 7th Central Pay Commission as follows:

1.         Shri Justice Ashok Kumar Mathur                            -                          Chairman           
            (Retired Judge of the Supreme Court and Retired
            Chairman, Armed Forces Tribunal)

2.         Shri Vivek Rae                                                             -                        Member (Full Time)
            (Secretary, Petroleum & Natural Gas)

3.         Dr. Rathin Roy                                                             -                        Member (Part Time)
            (Director, NIPFP)

4.         Smt. Meena Agarwal                                                   -                          Secretary
            (OSD, Department of Expenditure,
            Ministry of Finance)

Source - www.railnewscenter.com

Saturday, January 4, 2014

General Bikram Singh, senior military chief, asked the government to give "full representation" to the military on the 7th Central Pay Commission


As the CoSC chairman, ACM Browne pushed several tri-Service initiatives including the critical one for creation of three new joint commands for space, cyber and special forces. He also asked the government to give "full representation" to the military on the 7th Central Pay Commission as well as resolve pending issues like rank pay.

Gen Singh, in his new role as the CoSC chairman, will also have to ensure synergy among the three Services which often pull in different directions on doctrinal, planning, policy and operational issues. Of the particular significance will be the three new commands, considered crucial for deploying capabilities for conventional as well asymmetric warfare in a unified manner, which are now awaiting the final government nod.

India as of now has only two unified commands, the Andaman and Nicobar Island regional command and the Strategic Forces Command to handle nuclear weapons, as also an integrated defence staff set-up.

Successive governments have also dragged their feet in creating the post of a General No. 1, a tri-Service military chief, either in the shape of a chief of defence staff (CDS) or a permanent chairman of the CoSC.

The existing CoSC comprises the Army, Navy and IAF chiefs, with the senior-most of them acting as the "rotational" chairman till he retires. A permanent chairman, with a fixed two-year tenure, would mean a fourth four-star general in the CoSC as the "first among equals".

Despite being strongly recommended by the GoM report on `Reforming the national security system' in 2001 after the Kargil conflict, the CDS post has been kept in cold storage. Similarly, the government has not moved towards appointing a permanent CoSC chairman, which was recommended by the 14-member Naresh Chandra Taskforce in its report submitted to PMManmohan Singh in May 2012, and later endorsed by the three Services.

The defence ministry has also rejected the need for "cross-staffing", or the posting of military officers to MoD to bridge the civil-military disconnect, holding that there were institutional mechanisms in place to ensure "joint consultations" as well as provide "integrated advise" to the defence minister.

SOURCE - TOI

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