RECOMMENDATIONS  OF  7th  CPC  :  SALIENT  POINTS  RELATED  TO  PAY & ALLOWANCES,  ADVANCE,  PENSION

   Most significant recommendations on the above items are given below. There will be some more points on different cadre related issued and other items which will follow shortly.

PAY

Ø  The uniform Fitment formula is 2.57. Effect from 01.01.2016.

Ø  Annual increment remains 3%.

Ø  To emphasize on the culture of performance, the Commission has recommended that all the non-performers in the system should be phased out after 20 years. The Commission has recommended that Performance Related Pay should be introduced in the government and that all Bonus payments should necessarily be linked with productivity.

Ø  The Commission has reached the minimum pay as Rs.18000/- from 01.01.2016 after some calculations having 15^th ILC norms at its core (JCM staff side demanded Rs.26000/-). It is 2.57 times of the minimum wage (Rs.7000/-) fixed by the Govt on 6^th CPC’s recomm. Hence all other levels are multiplied by 2.57.

Ø  Running Pay Band with Grade Pay has been proposed to be substituted by Pay Matrix with Pay Level (1 to 18).

Ø  Demand of increasing frequency of MACP is turned down and it will continue to take place after 10/20/30 years of service. But benchmark is proposed to be made ‘very good’ from present ‘good’. More stringent criteria or passing deptl examination or mandatory training before granting MACP is proposed for consideration of Govt.

Ø  Withholding annual increment for non-performers after 20 years of service is proposed, but not as a punishment, as an ‘efficiency bar’. Otherwise they may quit service with terms and conditions of VRS.

Ø  The Commission, after its interaction with the authorities of Australia and New Zealand feels that India should also have a permanent Remuneration Authority that should review the pay structure in future.

Allowances

    Out of 196 allowances, 52 proposed to be abolished. Another 36 is subsumed in some new proposed allowances.

Ø  Cash Handling Allowance is proposed to be abolished.

Ø  Cycle Allowance, Funeral Allowance abolished.

Ø  D.A. status quo.

Ø  Hard Area Allowance, retained and rationalized.

Ø  HRA, LTC, mobile phone, newspaper retained and rationalized.

Ø  OTA abolished, OSA not included in report.

Ø  SB Allowance abolished.

Ø  Sunderban Allowance --- Abolished as a separate allowance. Subsumed in Tough Location Allowance-III. To be paid as per Cell R3H3 of the newly proposed Risk and Hardship Matrix.

Ø  Transfer TA, Transport Allowance retained, rationalized.

Ø  Treasury Allowance abolished.

Ø  Uniform & Washing Allowance abolished as separate allowance, Subsumed in new Dress Allowance (Rs.5000/- per year to be credited in July).

Ø  FPA abolished.

HRA

·         Recommended to be revised to 24, 16, 8 % now respectively for X, Y and Z class cities. After DA reaches 50% it will become 27, 18, 9%. After DA reaches 100% it will become 30, 20, 10%.

CEA :

·         CEA is proposed Rs.2250/- p.m. When DA increases by 50%, it will increase by 25%.

·         Hostel subsidy Rs.6750/- p.m. (ceiling). When DA increases by 50%, it will increase by 25%.

·         Reimbursement once in a year after completion of financial year.

ADVANCE 

·        All interest-free advances are proposed to be abolished. This covers Cycle Adv, Festival Adv, Transfer TA Adv, LTC Adv, TA Adv, Advance of Medical Treatment etc.

·         Car/Scooter Adv abolished.

·         Computer Adv--- 50000/- or lower whichever is least maximum for 5 times in service life.

·         HBA --- 34 times of basic pay / Rs.25 lakh / Actual price whichever is less.

LEAVE :

·         CL same.

·         CCL with 100%  salary for 1^st 365 days, 80% of salary for next 365 days.

·         CCL for single male parent is recommended.

·         Commuted leave same.

·         EL – no change for us.

·         EOL, HPL, LND, Maternity, Paternity, Study Leave, Gazetted, Restricted Holiday same.

·         Spl CL --- not categorical, but restriction is suggested on purpose and number of days.

CGEGIS :

·         Monthly deduction and insurance amount increased.

·         Savings Fund to Insurance Fund ratio is recommended to make 75:25 from present 70:30.

GPF :

·         Status quo.

CGHS / Health Benefits to Employees / Pensioners

·         Introduction of new Health Insurance Scheme has been strongly recommended. Till then, for pensioners beyond CGHS area, it is suggested that CGHS should empanel all hospitals empanelled under CS(MA) Rules.

·         Remaining 33 Postal Dispensaries are proposed to be merged with CGHS.

·         Other Health Care Schemes in various Central Govt Dept be merged in one single new scheme.

Persons with disabilities :

·         All existing facilities retained, some are made better.

·         Suitable building architecture for easy access is suggested.

·         Setting up a Welfare Committee in each Ministry is recommended.

Pension & Retirement Benefits :

·         No increase in rate of pension/family pension.

·         Ceiling of gratuity be made Rs.20 lakh from existing Rs.10 lakh. It will increase by 25% whenever DA rises by 50%. In case of death gratuity, new slab is introduced.

·         No increase in Fixed Medical Allowance.

Training :

·         The Commission has noted that training is a ‘low priority area’ suffering from lack of fund. Recommended 2.5% of salary budget for training through creating separate budget head.