IMPORTANT RECOMMENDATIONS OF 7TH PAY COMMISSION

IMPORTANT RECOMMENDATIONS

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 15^th Indian Labour Conference for calculation of Minimum wage distorted by 7^th 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

1^st 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

20.          MEDICAL

Medical Insurance Scheme for serving and retired employees recommended.

21.          TRANSPORT ALLOWANCE - NO HIKE -  ONLY 125% MERGER

Pay Level	Higher Transport Allowance cities (A, AI)	Other places
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

Rate

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

  

PENSIONARY BENEFITS

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 7^th 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.