7TH CPC WIL INCREASE CENTRAL GOVERNMENT PAY ONLY BY 15%. SHOULD WE ACCEPT?


7 TH CENTRAL PAY COMMISSION REPORT PDF COPY
7th Pay Commission Proposed Pay Structure.
LAST UPDATED 02.09.2015
Proposed Pay Structure in the Final Memorandum of NC JCM to 7th CPC
Proposed pay scale minimum.
Sl. No.Pay scale No.Present PBPB No.Grade PayProposed minimum of the pay scale.
1S.15200-20200PB.1180026000
2S-25200-20200PB 1200033000
3S-35200-20200PB 1280046000
4S-49300-34800PB 2420056000
5S-59300-34800PB 2480074000
6S-69300-34800PB 2540078000
7S-715600-39100PB 3540088000
8S-815600-39100PB 36600102000
9S-915600-39100PB 37600120000
10S-1037400-67000PB 48900148000
11S-1137400-67000PB 410000162000
12S-1275500-80000HAG0193000
13S-1380000( Fixed )Apex scale.0213000
14S-1490000 (Fixed)Cabinet Secy0240000
Table 7.2.

New Pay scale minimum

SL.No.   Grade pay of 6thCPC     Minimum of the  new pay scale
1          180026000
2190031000
3200033000
4   240041000
5   280046000
6420056000
7  460066000
8    480074000
9   540078000
105400 in PB388000
11  6600102000
12    7600120000
13 8700139000
14 8900148000
15  10000162000
16   12000193000
17  75000-80000202000
18   80000 fixed213000
1990000 fixed240000
National Council JCM , Staff Side has finalised its Memorandum to be submitted to 7th Pay Commission and it has been posted in its website NCJCMstaffside.com for all central government employees. The Full Final Memorandum consists 98 pages and the download link is provided below this post
Chapter —VII
Proposed Pay Structure and Rate of Increment
In the preceding chapters we have dealt with the various principles of pay determination as was enunciated by the successive Pay Commissions. The 6 CPC introduced the new concept of Pay Band and Grade Pay. We are not able to comprehend any logical methodology having been adopted by the 6th CPC in constructing the Pay Band and Grade Pay. In the ultimate analysis, we found that there had been no uniform multiplication factor. It varied from 2.2 time to 3. The changes effected by the Government while implementing the recommendations of the 6th cpc further compounded the confusion and making t more irrational and arbitrary. The 6 cPC in their report stated that they have upgraded certain pay scales having appreciated the contention made by the employees organizations. They merged certain other pay scales in an effort to delayering the functions. But the new pay that emerged from such upgradation/merger was not equivalent to the higher pay scales in the said group. For instance, the erstwhile pay scales of Rs.5000-8000, 5500-9000 and 6500-10500 were merged. The multiplication factor for pay band construction was 1.86 times of the minimum. Therefore the pay band for the pre merged pay scales was determined to begin at Rs.9300/-. Having merged, the pay band must have begun at 12,090/-, i.e. 1.86 times of 6500/- in which the other pay scales were merged.
7.2 The manner in which the Grade pay was devised is also questionable. At the lower level the Grade Pay progresses @ Rs.100/- ,i.e. 1800, 1900, 2000, etc. The pay in the Band + Grade Pay at the entry level is 5200 + 1800 = 7000. An employee is entitled for 3% increment every year. He gets a financial benefit of Rs. 210 every year on account an increment whereas on promotion his grade pay gets increased by just Rs.100/. only. The Grade Pay was devised at 40% of the maximum of the pre revised time scale of pay. The maximum of any time scale of pay will depend upon the rate of increment and the span of the scale of pay. The ratio between the minimum and the maximum of all pay scales was not uniform, rather it could not be uniform. Therefore, prescribing Grade Pay as a percentage of such variable maximum, in our opinion, was erroneous. Normally fitment benefit represent the gap between pre revised minimum and the revised minimum. The 6th CPC recommendation of Grade Pay did not serve this purpose also. Having been expressed in absolute quantum amount it gave varied benefit in different pay bands as also at different stages in the same pay bands.
7.3 The Grade Pay system brought about various anomalies, which were raised at the NAC but found no resolution despite discussions on several occasions in the last 6 years. We are of the firm view that the 7” CPC should revert to the Pay Scale System which has been time tested. We have constructed the pay scales maintaining the relativities with the time scale of pay suggested by both 5’ and 6th cPC•
7.4 While constructing the pay scales we have taken the rate of increments at 5% instead of 3% presently available. We have done so on the ground that most of the PSUs including the banking industries provide the incremental rate at 5% and over a period of time it raises the salary level of the personnel. We therefore request that the 7th CPC may recommend the rate of annual increment at 5%. Incidentally we may also state that the uniform date of increment prescribed by the 6th CPC has encountered certain problems and anomalies. We, therefore, suggest that the 7th cpc may recommend, for administrative expediency, two specific dates as increment dates, Viz. 1st January and 1st  July. Those recruited/appointed/promoted during the period between l January and 30th June will have their increment date on 1stt January and those recruited/appointed/promoted between 1st July and 31st December will have it on 1st  July next year. This apart we request the Commission to specifically recommend that those who retire on 30th June or 31St December are granted one increment on the last day of their service.
7.5 We have also felt that a further reduction in the number of pay scales is needed. While constructing the pay scales we have removed those pay scales pertaining to Grade Pay of Rs.1900, 2400, 4600, 8700 and the scale of pay of Rs. 75500-80000. We are of the opinion that the instrument of Special Pay which was in operation earlier should be brought back to address the need of intermediary grades in certain organizations. The Associations and Federations representing the employees and officers of various departments and various categories will submit their memorandum indicating the pay scales to be assigned to the categories of the
employees and officers they represent taking into account the nature of functions assigned to those categories separately.
7.6 Presently, functional promotion is made to the next hierarchical position whereas MACP promotion ¡s Grade Pay based, irrespective of the fact whether a particular Grade Pay exist in the hierarchy or not in the concerned department. Our suggestion to reduce the number of pay scales go a great extent to obviate the difficulty encountered due to the dual system of promotion.
7.7 We have constructed open- ended pay scales. This is to ensure that no employee stagnates without increment. The pay of the Secretary and the Cabinet Secretary has been kept as a fixed amount as has been the recommendation of the 6th CPC. In consonance with our view on the need for further de-layering, we have suggested only 14 Pay scales indicating in the table the minimum of each of them. The said 14 pay scales are given below:
In Table 7.2, the corresponding pay scales of the 6” CPC recommended Grade Pay are given for reference.
Table No. 7.1.
Big Expectations from 7th CPC and Low possibilities projected by Union Finance Minister!
Honourable Finance Minister Shri.Arun Jaitely had spoken about the possible impact of 7th CPC recommendations in Parliament.
The Speech is critically reviewed by Comrade Elangovan of DREU.
Big Expectations from 7th CPC and Low possibilities projected by Union Finance Minister!
Honourable Finance Minister Shri.Arun Jaitely had spoken about the possible impact of 7th CPC recommendations in Parliament.
The Speech is critically reviewed by Comrade Elangovan of DREU.

I am reproducing the comments of Comrade Elangovan for the consideration of our members: 

 R.ELANGOVAN,
WORKING PRESIDENT, DREU
 1.     The Medium Term Expenditure Framework statement has not yet been uploaded in Finance Ministry’s website. However I have taken the figures provided by print media including The Hindu. As per their statement the expenditure on salaries will rise by 9.56% in the fiscal 2015-16 as a result of 7th CPC implementation over the normal estimated expenditure in the 2015-16 budget to Rs.100619 crores. This means that the expenditure projected was Rs.91,839cr which if increased by 9.56% becomes Rs.100619 crores.
2.     While going through the earlier framework statements I have come to the conclusion that the ‘salaries’ shown is pay with normal increments plus DA projected.
3.     As per the estimated strength and provision there of statement laid as part of finance budget, the normal projection as PAY was Rs.60731 cr and so DA is Rs 31,108 as deducted from Rs 91 839 cr. The budget document does not give the DA expenditure separately. It gives the total expenditure on all allowances. I have therefore arrived at the figure based on calculations. However I have sought the expenditure on DA, HRA, and Transport Allowance separately through RTI.
4.     The increase proposed is Rs.100619 cr from Rs.91,839cr  which means that there will be an increase of Rs.8780 cr. There won’t be any DA after 1-1-2016 up to 31-3-2016 in the fiscal 2015-16.Therefore the whole increase is on basic pay in this fiscal.
5.     As we have already seen that the basic pay is Rs.60731 cr. the increase of Rs.8780 cr. is over this Rs.60731.This increase is 14.45% only. The expenditure projected for 2016-17 is Rs.1,12,000cr which is Rs.11,400 more over 2015-16 which works out to 11.32%. This is due to Increment, DA,HRA, TRA etc. The projection for 2017-18 is 1,16,000 cr.
6.     If 40%  of Basic Pay is to be given, the increase of expenditure in the fiscal 2015-16  must  be Rs. 24000 cr as against the Rs. 8780 cr. The demand of JCM Staff side is that there must be an increase of 371% of basic pay as on 1-1-2016. With the 119% DA we would be drawing 219% already. The real increase demanded is 152% of Basic Pay. So not the 152% or 40% of 5th and 6th CPC is intended to be given to us. Only around 15% is going to be given. As The Terms Of Reference of 7TH CPC directs them to recommend only what is‘FEASIBLE AND DESIRABLE’to the Government. Now the Government In Parliament states only 15% is FEASIBLE AND DESIRABLE. ARE WE TO ACCEPT IT.? Some PSUs got 15%. But that is for 5 years. But for Central Government Employees it is for Ten Years. Are We To Accept?

7.     Pension expenditure for civilian pensioners was estimated to be Rs.27,145cr and defence pension Rs.54,500 cr. The total is Rs.81645 cr. This is expected to go up to Rs.88521 cr, which is an increase of Rs.6876 cr.As there will be no Dearness Relief for the fiscal 2015-16 the increase is to be accounted only to Basic Pension.

8.     I have sought the expenditure break up for dearness relief under RTI. However the rough calculation shows a near increase of same 15% in Pension.

9.     The impact of 6th CPC on expenditure as per estimated strength of establishment and provision thereof in respect of Central Government civilian employees was as follows:
ARREARS Rs 26084 cr.  For three  years mostly on Pay and DA regular PAY Increase per annum:   Rs 8685 cr. These are actual figures. The 219% of Rs. 8685 cr is  Rs.19000 cr. EVEN THIS IS NOT GIVEN.

10. We must issue a warning to the government afresh demanding acceptance of our demand. I recall my earlier note wherein I had quoted BibekDebroy’s report that the 7th CPC will not be that destabilising to the Government as that of 6th CPC. GOVERNMENT PROVES THAT.



I am reproducing the comments of Comrade Elangovan for the consideration of our members: 




 

7TH CPC WIL INCREASE CENTRAL GOVERNMENT PAY ONLY BY 15%.

SHOULD WE ACCEPT?

 R.ELANGOVAN,

WORKING PRESIDENT, DREU



 1.     The Medium Term Expenditure Framework statement has not yet been uploaded in Finance Ministry’s website. However I have taken the figures provided by print media including The Hindu. As per their statement the expenditure on salaries will rise by 9.56% in the fiscal 2015-16 as a result of 7th CPC implementation over the normal estimated expenditure in the 2015-16 budget to Rs.100619 crores. This means that the expenditure projected was Rs.91,839cr which if increased by 9.56% becomes Rs.100619 crores.



2.     While going through the earlier framework statements I have come to the conclusion that the ‘salaries’ shown is pay with normal increments plus DA projected.



3.     As per the estimated strength and provision there of statement laid as part of finance budget, the normal projection as PAY was Rs.60731 cr and so DA is Rs 31,108 as deducted from Rs 91 839 cr. The budget document does not give the DA expenditure separately. It gives the total expenditure on all allowances. I have therefore arrived at the figure based on calculations. However I have sought the expenditure on DA, HRA, and Transport Allowance separately through RTI.



4.     The increase proposed is Rs.100619 cr from Rs.91,839cr  which means that there will be an increase of Rs.8780 cr. There won’t be any DA after 1-1-2016 up to 31-3-2016 in the fiscal 2015-16.Therefore the whole increase is on basic pay in this fiscal.



5.     As we have already seen that the basic pay is Rs.60731 cr. the increase of Rs.8780 cr. is over this Rs.60731.This increase is 14.45% only. The expenditure projected for 2016-17 is Rs.1,12,000cr which is Rs.11,400 more over 2015-16 which works out to 11.32%. This is due to Increment, DA,HRA, TRA etc. The projection for 2017-18 is 1,16,000 cr.



6.     If 40%  of Basic Pay is to be given, the increase of expenditure in the fiscal 2015-16  must  be Rs. 24000 cr as against the Rs. 8780 cr. The demand of JCM Staff side is that there must be an increase of 371% of basic pay as on 1-1-2016. With the 119% DA we would be drawing 219% already. The real increase demanded is 152% of Basic Pay. So not the 152% or 40% of 5th and 6th CPC is intended to be given to us. Only around 15% is going to be given. As The Terms Of Reference of 7TH CPC directs them to recommend only what is‘FEASIBLE AND DESIRABLE’to the Government. Now the Government In Parliament states only 15% is FEASIBLE AND DESIRABLE. ARE WE TO ACCEPT IT.? Some PSUs got 15%. But that is for 5 years. But for Central Government Employees it is for Ten Years. Are We To Accept?



7.     Pension expenditure for civilian pensioners was estimated to be Rs.27,145cr and defence pension Rs.54,500 cr. The total is Rs.81645 cr. This is expected to go up to Rs.88521 cr, which is an increase of Rs.6876 cr.As there will be no Dearness Relief for the fiscal 2015-16 the increase is to be accounted only to Basic Pension.



8.     I have sought the expenditure break up for dearness relief under RTI. However the rough calculation shows a near increase of same 15% in Pension.



9.     The impact of 6th CPC on expenditure as per estimated strength of establishment and provision thereof in respect of Central Government civilian employees was as follows:

ARREARS Rs 26084 cr.  For three  years mostly on Pay and DA regular PAY Increase per annum:   Rs 8685 cr. These are actual figures. The 219% of Rs. 8685 cr is  Rs.19000 cr. EVEN THIS IS NOT GIVEN.



10. We must issue a warning to the government afresh demanding acceptance of our demand. I recall my earlier note wherein I had quoted BibekDebroy’s report that the 7th CPC will not be that destabilising to the Government as that of 6th CPC. GOVERNMENT PROVES THAT.