Tuesday, 24 November 2015
No.NC/JCM/2015 Dated: November 20, 2015
All Constituents of the
Sub: Meetings with the VII CPC and the Cabinet Secretary
Today I met the Chairman, VII CPC, Justice Shri Ashok Kumar Mathur, and expressed our anguish against retrograde recommendations of VII CPC, particularly reg. Minimum Wage, reduction in HRA and CCL, non-redressal of NPS, abolition of various allowances, examination of MACP benefit, etc. etc.
Tough he had given argument, but I told him about the anguish of all the constituents of the JCM(Staff Side), who feel that they have been betrayed by the VII CPC.
Comrades! I have also met the Cabinet Secretary, Shri P.K. Sinha, in the afternoon and handed him over a copy of the attached letter and requested him to convene meeting of the NC/JCM at an earliest as well as to intervene in the matters raised by the JCA in case of report of VII CPC at an earliest. The Cabinet Secretary has promised that he would try to fix the meeting at an earliest and also look into the points raised by the NC/JCM(Staff Side) for VII CPC.
With fraternal greetings!
While the 7th Pay Commission report recommendations have been a source of joy for hundreds of thousands of government employees, for the national trade unions linked to the Bharatiya Janata Party (BJP) and the Left, the hike has not been high enough and they have not kept quiet about it.
Trade unions have protested vehemently against the 7th Pay Commission and are looking for redressal of their grievances and contemplating action. They have also looked at strong industrial action to indicate their unhappiness and will be indicating soon what their future course of action can be. Here are the top 10 reasons why, they say, they are angry with the Seventh Pay panel report:
1. Proposed 7th Pay Commission hike is lowest in many decades and not in sync with inflation - least hike (proposed) in the last 30 years. Considering the inflation, it is unsatisfactory.
2. 7th Pay Commission has recommended a 16 per cent hike in net pay against projected 23.55 per cent.
3. There is a huge gap in maximum and minimum pay in the 7th Pay Commission report recommendations.
4. The gratuity ceiling recommended by 7th Pay Commission has been raised from Rs 10 lakh to Rs 20 lakh, the benefit of this will go to senior officials only.
5. 7th Pay Commission report has ignored sharp increase in prices justifying substantial upward revision in HRA and other allowances. Instead the commission has reduced rates of HRA from 30 per cent to 24 per cent of the basic pay in A Class cities and corresponding decrease in other cities which is a retrograde recommendation.
6. Doubts about the way the 7th Pay Commission has calculated the figures. For example, they calculated House Rent Allowance (HRA) at 3 per cent against the mandated 7 per cent.
7. As per commodity prices on Agriculture Ministry's website and on the basis of Labour Bureau data, the Basic Pay comes at Rs 11,341 while 7th Pay Commission calculation shows it at Rs 9,218. There is a lot of gap.
8. There is no clarity in the 7th Pay Commission report on the pay revision for lakhs of contract workers in government ministries as well as 3 lakh Grameen Dak Sewaks.
9. 7th Pay Commission is the only commission, which has reduced the allowances and due to which the growth in net income is only 14.28 per cent. (PTI).
10. 7th Pay Commission report is totally disappointing and beats logic. Employees and workers will meet on November 27 to protest against the recommendations of the 7th Pay Commission and discuss the issue.
NOTE: The 900-page report of the 7th Pay Commission headed by Justice A K Mathur was presented to Finance Minister Arun Jaitley with a recommendation that the new scales be implemented from January 1, 2016. The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.
Sunday, 22 November 2015
NATIONAL FEDERATION OF POSTAL EMPLOYEES
1st Floor, North Avenue PO, New Delhi – 110001
7th PAY COMMISSION REPORT
POSTAL EMPLOYEES – ALL DEMANDS REGARDING ENHANCED WAGES AND SERVICE CONDITIONS REJECTED
HOLD PROTEST DEMONSTRATIONS ALL OVER THE COUNTRY
1. Commission is of the view that there is no justification of upgrading the pay of
(a) Postal Assistants/Sorting Assistants
(b) Postal Assistant (SBCO)
(c) Postal Assistant (CO)
(d) Postman cadre & Mailguard.
(e) PO & RMS accountants
(f) Despatch Rider (MMS)
(g) Multi-Tasking Staff (MTS) including Foreign Post
(i) System Administrators (No separate cadre or pay)
(j) Marketing Executives (no separate cadre or Pay)
(l) Technical Supervisors (MMS) (in) Drivers
2. Gramin Dak Sevaks cannot be treated as Civil servants at par with Regular employees. As they are only holder of civil posts and not civilian employees, no recommendations with regard to GDS.
3. Recommended immediate merger of 33 Postal dispensaries in 10 Postal Circles with CGHS.
4. ADDITIONAL POST ALLOWANCE FOR POSTMAN
10% of Basic Pay if one shares the another Postmen duty. If it is shared by two Postmen, it will be 5% for both.
5. HOLIDAY MONETARY COMPENSATION
Supervisor, PA, Sorting Postman – Rs. 200/- per holiday.
MTS – Rs. 150/- per holiday
6. ADDITIONAL WORK ALLOWANCE
2% of the Basic Pay per month
10% of the Basic pay if period exceeds 45 days.
7. IP/ASP/SP SCALE UPGRADED
Commission has noted that the VI CPC had placed Inspector (Posts) at par with Inspector of CBDT/CBED. Subsequently the Inspector of CBDT/CBE were elevated to GP 4600. The Commission has further noted that the Inspector of Posts and Inspector of CBDT/CBED are recruited through the same combined graduate level examination. Therefore the commission recommended 4600 GP for IP and 4800 GP and 5400 GP for SPOs.
(R. N. Parashar)
1. DATD OF EFFECT – 01.01.2016
JCM Staff Side demand – 01.01.2014 - Rejected
2. MINIMUM PAY – 18000
JCM (SS) demand – 26000 – Rejected
Dr. Aykroyd Formula of 15th Indian Labour Conference for calculation of Minimum wage distorted by 7th CPC to deny the eligible minimum pay.
3. FITMENT FORMULA – 2.57 TIMES
JCM (SS) demand – multiplication factor 3.7 (26000/7000)
4. FIXATION ON PROMOTION – NO CHANGE – ONLY ONE INCREMENT IN THE OLD SCALE
JCM (SS) demand – Minimum two increments fixation.
5. ANNUAL INCREMENT – 3% NO CHANGE
JCM (SS) demand – 5%
6. MODIFIED ASSURED CAREER PROGRESSION – NO CHANGE – 10, 20, 30
Conditions made more stringent. Bench mark “Very Good” required instead of “good”. Examination for MACP proposed. Hierarchial promotion restored.
JCM (SS) demand: Five promotion – 8,7,6,5,4 (30 years)
7. PAY BAND, GRADE PAY SYSTEM ABOLISHED
New Pension Structure called “Matrix based open ended pay structure” recommended. Total span of the scale 40 years.
JCM (SS) demand: Abolish pay band, Grade Pay system and open ended pay scales should be introduced.
8. MAXIMUM PAY INCREASE – 14.29%
JCM (SS) demand – Minimum 40% increase for all employees.
9. COMPARISON BETWEEN MINIMUM AND MAXIMUM PAY – 1:11.4 (18000 : 205400)
Demand of the JCM (SS) – 1:8
10. NUMBER OF PAY SCALES – NOT REDUCED - NO DELAYERING
JCM(SS) demand – pay scales with grade pay 1900, 2000, 4600, 8700 and the pay scale 75500-80000 to be abolished.
11. ALLOWANCES – NO IMPROVEMENT
Commission recommended abolition of 52 existing allowances such as Assisting Cashier Allowance, Cash Handling Allowance, Treasury Allowance, Handicapped Allowance, Risk Allowance, Savings Bank Allowance, Special compensatory (Hill Area) Allowance, Cycle Allowance, Family Planning Allowance etc.
12. HRA REDUCED TO 24%, 16% AND 8% FOR X, Y AND Z CITIES
JCM (SS) demand – Existing HRA of 30% (for X class cities with population 50 lakhs and above), 20% (for Y class cities with population of 5 lakhs to 50 lakhs) and 10% (for Z class cities with less than 5 lakhs population) may be increased to 60%, 40% and 20%.
13. DRIVERS – HIGHER PAY SCALE REJECTED
14. DA FORMULA – NO CHANGE
15. HBA – NO CHANGE – CEILING RAISED TO 25 LAKHS
16. CASUAL LEAVE – NO INCREASE
17. CHILD Care Leave
1st 365 days – Full pay (100%)
Next 365 days – 80% Pay only.
18. MATERNITY LEAVE – NO CHANGE -
19. LEAVE ENCASHMENT AT THE TIME OF RETIREMENT – NO INCREASE MAXIMUM 300 DAYS ONLY
Medical Insurance Scheme for serving and retired employees recommended.
21. TRANSPORT ALLOWANCE - NO HIKE - ONLY 125% MERGER
Higher Transport Allowance cities (A, AI)
9 and above
7200 + DA
3600 + DA
3 to 8
3600 + DA
1800 + DA
1 and 2
1350 + DA
900 + DA
22. LEAVE TRAVEL CONCESSION (LTC) – NO CHANGE
One time LTC to Foreign Country during the service rejected. Splitting of Home Town LTC for employees Posted in North East, Laddakh, Andaman & Nicobars and Lakshdweep allowed.
23. ACCOUNTS STAFF BELONGING TO UNORGANIZED ACCOUNTS – PARITY WITH ORGANISED ACCOUNTS REJECTED.
24. PERIODICAL REVIEW OF WAGES (NOT TEN YEARS) RECOMMENDED. NO PAY COMMISSION REQUIRED
25. PERFORMANCE RELATED PAY SHOULD BE INTRODUCED IN GOVERNMENT SERVICES AND ALL BONUS PAYMENT SHOULD BE LINKED TO PRODUCTIVITY.
JCM (SS) demand – No Performance related Pay. Productivity Linked Bonus for all.
26. COMPULSORY RETIREMENT AND EFFICIENCY BAR REINTRODUCED
Failure to get required bench MarK for promotion within the first 20 years of service will result in stoppage of increment. Such employees who have out lived their ability, their services need not be continued and the continuance of such persons in the service should be discouraged.
27. PROMOTEE AND DIRECT RECRUITS – ENTRY LEVEL PAY ANOMALY IS REMOVED
JCM (SS) demand – the differential entry pay between new recruits and promoted employees should be done away with.
28. CADRE REVIEW TO BE COMPLETED IN A TIME BOUND MANNER.
Commission recommended to hasten the process of cadre review and reduced the time taken in inter-ministerial consultations.
29. NEW PENSION SCHEME – WILL CONTINUE
30. CEA & HOSTEL SUBSIDY
CEA per month 2250 - 25% increase when DA crosses 50%
Hostel subsidy 6750 –25% increase when DA crosses 50%
31. GROUP INSURANCE SCHEME
Level Monthly Contribution Insurance Amount
1 to 5 1500 15 Lakhs
6 to 9 2500 25 lakhs
10 and above 5000 50 lakhs
32. PENSIONERS – PARITY – LONG STANDING DEMAND OF THE PENSIONERS ACCEPTED
Commission recommends a revised Pension Formulation for Civil employees and Defence Personnel who have retired before 01.01.2016. (expected date of implementation of seventh CPC recommendations). This formulation will bring about complete parity of past pensioners with current retirees.
33. PENSIONERS – MINIMUM PENSION RS. 9000/-
(50% of the minimum pay recommended by the 7th CPC)
34. PENSIONERS – GRATUITY CEILING RAISED TO 20 LAKHS
35. PENSIONERS – FIXED MEDICAL ALLOWANCE (FMA) – NO CHANGE (RS. 500/-)
36. CGHS FACILITIES TO ALL POSTAL PENSIONERS RECOMMENDED
33 Postal dispensaries should be merged with CGHS
37. GRAMIN DAK SEVAKS (GDS) OF THE POSTAL DEPARTMENT DEMAND FOR CIVIL SERVANTS STATUS REJECTED
Recommendation: - The committee carefully considered the demand for treating the Gramin Dak Sevaks as civil servants at par with other regular employees for all purposes, and noted the following:
(a) GDS are Extra-Departmental Agents recruited by Department of Posts to serve in rural areas.
(b) As per the Recruitment Rules the minimum educational qualification for recruitment to this post is class X.
(c) GDS are required to be on duty only for 4 to 5 hours a day under the terms and conditions of their service.
(d) The GDS are remunerated with Time Related continuity Allowance (TRCA) on the pattern of pay scales for regular Government employees plus DA on pro-rata basis.
(e) A GDS must have other means of income independent of his remuneration as a GDS to sustain himself and his family.
Government of India has so far held that GDS is outside the Civil Service of the Union and shall not claim to be at par with the Central Government Employees. The Supreme Court Judgment also states that GDS are only holder of Civil posts but not civilian employees. The Commission endorses this view and therefore has no recommendation with regard to GDS.
Wednesday, 18 November 2015
7th pay commission is going to submit its report on 20th November 2015 and 15 % hike is recommended
Report from news circle says that 7th pay commission is going to submit its report on 20th November 2015 and 15% hike is recommended
After submission, it is believed that the outcome of 7th cpc recommendation will be unexpected and disappointment for bapus as Central Government deliberately influenced the Pay commission to be cautious about upward revision of pay and allowances of govt servants.
When the commission itself was ready to submit the report in stipulated time initially, the Central government gave four months extension upto December 2015.
The reason cited by Federation leaders for the extension was ‘ NDA government didn’t want to put itself in a mess before Bihar Election, because the Recommendation will not fulfil the expectation of Govt servants. The NDA government felt that disappointed central government employees may protest over 7th pay commission recommendation if it does not meet their expectation which , it felt, may reflect in Election Results. So the Central Government decided to postpone the date of submission of the report after the Bihar election.
But unexpectedly the NDA has failed to yield fruitful results in Bihar election. Now opposite parties found the reason to be united against the NDA Government, since the election result gave them faith and beleif to over power the NDA in coming elections.’
Further they added, “The winter session of Parliament going to start from 26 November 2015, opposite parties waiting to stall the proceedings of Parliament based on handful of sensitive issues which will be a bitter experience for NDA government.
So submission of 7th pay commission report before the winter session of parliament may help the govt to divert the attention of media and public from the sensitive issues”.
The Pay Commission, if it followed the methods adopted by previous pay commissions to compute the increase to be recommended for revision of pay and allowances of government servants, minimum 40% increase can be recommended.
But According to the Medium-Term Expenditure Framework Statement tabled by Finance Minister Arun Jaitley in Parliament said
“The salary outgo of central government employees will go up by 9.56 per cent to Rs 1,00,619 crore in current fiscal.The pace will increase further in 2016-17 at 15.79 per cent to Rs 1.16 lakh crore with the likely implementation of the 7th Pay Commission award”
So there are two possibilities for calculating Fitment Formula
1. As per the Finance Minister Statment the increase will be 15 %
2. All the Fedrartion demanded for 40 to 60 % hike, but minimum 30 % increase is expected.
Accordingly The Fitment formula for the above two estimates are worked out below
Present DA = 119%
Expected DA from from January 2016 =6%
Total Da =125 %
DA has to be neutralised to arrive Revised Pay from 1.1.2016, if so Multiplication factor will be2.25
If 30% increase is recommended-
The Fitment formula = 2.25 + (2.25×30/100) = 2.92
Minimum Basic will be Rs.7000 x 2.92 = Rs.20440
If 15% increase is recommended-
The Fitment formula = 2.25 + (2.25×15/100) = 2.58
Minimum Basic will be Rs.7000 X 2.58 = Rs.18060
Minimum Pay to be recommended according to the above estimates by 7th Pay commission will be either Rs.20000 or Rs.18000
How ever both of the above figures will not satisfy the central government employees since the increase is not going to match their expectation. We have to wait to know the exact increase recommended by 7th pay commission till the date of the report is made public.
Central government employees and pensioners are likely to be disappointed as the 7th Pay Commission is expected to propose an approximate 15 per cent hike in salaries starting January 1, 2016, sources told NDTV.
The recommendation, which will become effective after a Cabinet nod, will impact 50 lakh central government employees and 54 lakh pensioners.
The 15 per cent salary hike likely to be recommended by the 7th Pay Commission will be much lower than the 35 per cent hike employees got on implementation of the 6th Pay Commission in 2008.
A 15 per cent salary increase would push up the central government’s salary bill by Rs 25,000 crore, which is 0.2 per cent of India’s GDP, according to Bank of America Merrill Lynch estimates.
Economists expect the wage hikes to boost the consumption-driven recovery in the domestic economy. Sales of affordable homes and consumer durables such as cars, two-wheelers and other electronic items are likely to pick up, analysts say.
On the flip side, salary hikes are also expected to stoke inflation and fiscal pressures, economists say.
According to sources, the recommendations of the 7th Pay Commission will be submitted to the finance minister on Thursday. The 7th Pay Commission is unlikely to suggest changes in the retirement age of central government employees, sources said.
Pay Commissions are meant to review the salary structure of central government employees and are set up every 10 years.