Removal of Grade Pay System in 7th Pay Commission – A detailed report

Removal of Grade Pay System in 7th Pay Commission – A detailed report

Will the removal of Grade Pay System by the 7th Pay Commission help Central Government employees? – This is the topic of this article.

“Unconfirmed reports say that the 7th Pay Commission is very likely to recommend the abolishing of the Grade Pay System introduced by the 6th Pay Commission.”

Not only the Government, but the Central Government employees too are hoping and wishing that the 7th Pay Commission functions independently, free from interventions. The report of the previous Pay Commissions will guide for determining the revision of pay scale and pay bands, allowances, retirement benefits and other facilities/benefits of more than 50 lakh employees. The Pay Commission also considers the recommendations, suggestions and inputs gathered from employees all over the country and presented as memorandums by federations like the NC JCM and the Confederation.

There is no rule that the new Pay Commission has to follow the same methodology and determination followed by the previous Pay Commissions. Therefore, one cannot state for sure that the 7th Pay Commission will tow the guidelines issued by the 6th or the 5th Pay Commission while deciding the new pay scale and pay bands.

One has to keep in mind the fact that the 6th Pay Commission was radically different from the recommendations and guidelines issued by the 5th Pay Commission. One has to also remember that a number of industry experts, who predicted the recommendations of the 6th Pay Commission based on the trends of the previous Pay Commission, were proved completely wrong.

If one Pay Commission has the right to recommend the splitting of the Pay Scale into two, the next Pay Commission has all the powers to completely abolish the system. But, this is not the issue!

Will the Central Government employees benefit by the removal of the Grade Pay system? This is the question now.

It will definitely be beneficial. Here are the reasons why.

It is unacceptable that a promotion, which comes after waiting for many years, brings with it an increment of just Rs.100.

None has until now accepted the splitting of the promotional hierarchy, which had been followed for years, into two.

The anomalies that prevailed due to the ‘Grade Pay Hierarchy’ which was introduced under the MACP promotional system, still remain unresolved.

When the discussions and debates on MACP system continued to grow unabated during the NC JCM Anomaly Committee meeting, it was decided that a separate meeting ought to be held to analyze this issue.

Most of the individual requests from the Central Government employees this time are about the MACP promotional system. The reason is the Grade Pay structure introduced by the 6th Pay Commission.

And also can list out many reasons to abolish the Grade Pay System.

Source: www.90paisa.org

Real wage hike the Central Government employee is expecting is more than 80% wage hike – Karnataka COC

Real wage hike the CG employee is expecting is more than 80% wage hike – Karnataka COC

The General Secretary of Karnataka COC Shri P.S.Prasad said in the article published in his official blog on 14.8.2015 that the real wage hike the Central Government employee is expecting is more than 80% wage hike. We reproduced full content of the article and given below for your ready reference.

Central Government Employees Salary Expenditure

CLICK HERE FOR DETAILS

Comrades,

There are various reports of wage hike from 15.79 % to 40% in news papers/social media / web sites. It is once again clarified that none of these are correct. If we go through the statement of the Finance Minister in Parliament which says 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, the outgo towards salary will further rise in 2017-18 to over Rs 1.28 lakh crore.

The budget 2015-2016 : if go through the budget of 2015 -16 http://indiabudget.nic.in/ub2015-16/rec/tr.pdf expected tax revenue is 14,49,490.56 (In crores of rupees).

The Central Government employees wage bill is around Rs 1,00,000 crore . The actual wage bill is now at just 8.5 % of the revenue collection please see . http://finmin.nic.in/pru/BROCHURE/brochure2012-13.pdf.

The budget allocation at just 9.56 % as projected is not the real wage increase by the 7th CPC the Central Government employee is expecting, may be the 7th CPC may give higher wage increase than the budget allocation. If we go through the budget expenditure of 2008-09 when the 6th CPC was implemented the 16% of the total revenue was spent as wages.

The Government being model employer should pay its employees the real wages. The real wage hike the Central Government employee is expecting is more than 80% wage hike. Due to following factors. even the 5th CPC the wage increase was about 40% and 6th CPC recommendations the wage increase was about 40% even after merger of DA in 2004, hence the wage increase during from 2004 & 2006 together was more than 60%. Now we should hope for better wage hike from the 7th CPC.

a) The actual price rise in last decade is more than 250% , DA we got is just 119% as on 1/7/15.

b) The DA merger has not taken place as on 1/1/14 which would have given a wage hike of 25%.

c) All Government agencies such as Banks, Public sector undertakings, LIC, State Governments etc are having wage revision in 5 years, we are having only wage revision of 10 years, the price rise is eroding the wage hike in just a few years.

Let us fight for the real wage hike.

Comradely yours

(P.S.Prasad)

General Secretary

Source: http://karnatakacoc.blogspot.in/2015/08/central-government-employees-salary.html

7th Pay Commission, as seen by the economists and Analysts

7th Pay Commission, as seen by the economists

“All the Economists and Analysts, and not just in India, is discussing the 7th Pay Commission.”

Last week, Neelkanth Mishra of Credit Suisse said that there are chances of 40% increase in salary. He also remarked that post-7th Pay Commission, the financial status of Central Government employees will grow high enough to afford a car.

Yesterday, an article in the International Business Times analyzed the role of the Pay Commission in the economic development of India. The article had expressed an estimate on how substantial the hike in salaries would be following the 7th Pay Commission recommendations. Bank of America has estimated a 15% hike in the salary; Religare fixes the hike at between 28 to 30%, and Credit Suisse has marked it as 40%.

Since the Pay Commission has a huge influence on the country’s economic development, financial experts are keenly observing the 7th Pay Commission. This is why everybody is curious to know what the recommendations have in store for the country.

According to the article, the 6th Pay Commission gave a hike of 35% and more than 30 months arrears to the employees. As a result, the robust demand for consumer discretionary products that resulted in sustained stock performance over 3-5 years.

The report will directly impact 50 lakh Central Government employees (including 15 lakh armed forces personnel), and more than 1 crore state government employees. Also, the report would affect more than 30 lakh pensioners. The Bank of America estimates the salary hike to be at 15% and analyst expectes it to be the range of 15to 40%.

The article made it clear that the 6th Pay Commission gave the kind of economic growth among Central Government employees that was not seen in the past 50 years.

The big question justify now is – will the 7th Pay Commission give 35% hike, like the 6th Pay Commission did?

Source: http://cgemployeesnews.in/7th-pay-commission-as-seen-by-the-economists/

7TH PAY COMMISSION REPORT AND ITS IMPORTANT RECOMMENDATIONS – GROUNDLESS FLASH NEWS

Expected Date for Submission of 7th Pay Commission Report and its important recommendations – Sources

As the 7th pay Commission itself declared that the work of compilation and finalization of the report is underway, it is the time for expecting the date on which the report will be submitted after it is finalized. The stipulated time for submitting the report is 18 months from the date of notification issued. In a resolution dated 28th February, 2014, Government of India has appointed the Seventh Central Pay Commission comprising Justice Shri Ashok Kumar Mathur as Chairman, Shri Vivek Rae as full time Member, Dr. Ratin Roy as part time Member and Smt. Meena Agarwal as Secretary

The 7th pay commission has been given 18 months’ time from date of its constitution to make its recommendation. Hence the tentative date for submission of Report will be 30th August 2015.

The sources close to the 7th Pay Commission, on the condition of anonymity told that the 7th pay Commission Report is almost finalized and the Report is expected to be submitted on or before 14th August 2015. The Leaders representing one of the railway federations in the staff side also confirmed this news.

According to the Sources the important Points of the Pay Commission’s Recommendations are ..

1. There will be no running Pay band and Grade Pay System

2. The uniform multiplication factor for arriving revised pay will be 2.86

3. The Pay scales will be open ended to avoid stagnation in the scales

4. The Minimum Pay will be Rs. 21000

5. The CCA will be separated into two components as it was in the fifth CPC

6. Percentage of HRA will remain same.

7. The Criteria for retirement age will be either completion of 33 Years of service or at the age of 60 Years whichever is earlier.

8. CGEGIS Insurance Coverage and Monthly premium will be increased

9. Classification of Posts will be Modified

10. The 7th Pay Commission recommendation will be implemented with effects from 1.1.2016.

Further ,the sources told that the Committee of Secretaries will be appointed to study the report and analyze the financial implications upon implementation of 7th pay commission recommendation. An ally of NCJCM Staff Side told that the Staff Side also will be invited by the third week of September 2015 by this Committee before giving its final nod for approval for this Recommendation.

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A concise introduction of pay commissions for Central Government Employees…

A concise introduction of pay commissions for CG Employees

Central Pay Commissions and Central Government Employees…

Generally, Central Government Employees who works in different ministries and departments under the Central Government, play major roles in the smooth functioning of the country. Employees under different departments work so hard to maintain law and order, stabilizing the economy, security to the people and defending our nation from enemies. Even though they are not large in numbers, their work during major crisis like natural calamities, earthquake and floods, stands apart. They are even asked to work 24 hours a day on all working days during emergencies. Our Defence Forces have done breathtaking efforts and marvellous work to evacuate Indian citizens from foreign countries which are under civil wars. They are bold enough to cross the border of our neighbouring country to fight against terrorists who had earlier ambushed and killed our security forces. Everyone must be proud of our defence forces for their bravery and skills.

Students after completing their tough academic career in different streams, keeps their first preference to get a government job. Though the pay packages are lower than multinational companies, they think that government jobs give more security to them.

As everyone knows that the pay and allowances for the central government employees are fixed by the central government as per the recommendations of Central Pay Commissions (CPCs). The central government constitutes Pay Commissions by appointing highly placed personalities as Chairman and Members. The commission then studies the economic conditions, day today difficulties of employees, their ideas etc., and give its recommendations to revise pay packages for the employees in every ten years. The commission submits its recommendations to the central government and the government in turn, takes final decision to implement the Pay Commission. Usually, the commission is given 18 months time to submit its report on the recommendations on pay revision:

PAY COMMISSIONS:

The First Pay Commission was appointed on May 1946, and it submitted its report in May 1947.
The Second CPC was appointed on August 1957, and it submitted its report in August 1959.
The Third CPC was appointed on April 1970, and it submitted its report in March 1973.
The Fourth CPC was appointed on June 1983, and three reports were submitted in June 1986, December 1986 and May 1987 respectively.
The Fifth CPC was appointed on April 1994, and submitted its report in January 1997.
The Sixth CPC was appointed on October 2004, and submitted its report in March 2008.

SEVENTH PAY COMMISSION:

The Seventh Central Pay Commission was constituted on the 28th of February 2014 under the Chairmanship of Justice Shri Ashok Kumar Mathur, Shri Vivek Rae as full time member and Smt. Meena Aggarwal as Secretary. The Commission has been given 18 months from the date of its constitution to make its recommendations.

From the date of its constitution, the commission travelled all over the country meeting different delegates, officers, trade union leaders, associations, employees etc., under different departments to take stock of the economic conditions faced by the employees and the impact of rising prices of essential commodities on them.

Finally, the Chairman of the 7th CPC in their final meeting with the National Council JCM, has said that Commission will submit its report to the central government in September 2015. Points regarding the implementation of the 7th CPC were discussed. The Chairman denied any proposal to implement the recommendations from 01.01.2014 and said that the revised pay structures and recommendations will be implemented from 01.01.2016.

Let us hope for the best!!!

Source: www.govtstaffnewsportal.in

Expected 7th Pay Commission Pay Scale Calculator as on 1.1.2016

Expected 7th Pay Commission Pay Scale Calculator as on 1.1.2016

“Eagerness about Pay Hike Led to the Formation of the Estimate Calculator for

 Central Government Employees”

Now that one year has passed since the formation of the 7th Central Pay Commission, curiosity to know about the salary hike has increased among Central Government employees. The 18-month duration given to the Pay Commission ends in August this year. It is obvious that the Commission is working hard and dedicatedly to complete its tasks and present its pay hike recommendations and report, at the most, before the end of this year.

Sources say that the Government will give its nod to the recommendations of 7th CPC by April 2016. The recommendations including new pay scale for all groups are expected to come into effect from January 1, 2016 onwards.

“All over the world, speculations usually run wild about the outcome of certain events. More than 50 lakh current and former Central Government employees await information about the revision of pay and pension all over the country”.

We now present you the “Expected Calculator” which will give a fair idea of what to expect, in terms of salary increment, from the 7th Pay Commission.

Now, about our calculator…

First the ‘Expected Pay Scale Table of 7th Pay Commission’. [Click here]

And another important calculation is ‘Pay in the Pay Band’ of 7th Pay Commission. [Click here]

We know very well that Dearness Allowance percentage plays a very crucial role in deciding the revised pay sturcture. AICPIN, which is used to calculate the Dearness Allowance, has been on the stable for the past six months. Therefore, it is slightly difficult to calculate the new pay scale. As of now, Dearness Allowance is fixed at 120% for the current calculations.

House Rent Allowance, like before, will be calculated based on the city where the head quarter is located and is given as 10%, 20% and 30%. There will be no changes in this.

Transport Allowance is calculated depending on Dearness Allowance and is expected to increase by 3.28 times than the current rates.

How to use our calculator…

Just input of your present basic pay and details of allowances in the prescribed places. Click to calculate button. We immediately suggest your Pay Band, Pay in Pay Band, Grade Pay, HRA and TA as on 1.1.2016 on the basis of your inputs.

In our calculator, the July 2015 increment is added to the current basic pay to first arrive at the likely pay of January 1, 2016. According to the revised basic pay, DA, HRA and TA are given in the output table.

Then, based on the estimated hike of the 7th Pay Commission, the expected in revision of pay scale and allowances are given. Pay Band, Basic Pay, HRA, TA and the total of your expected pay as on 1.1.2016.

Finally, the difference between the two is calculated.

Click here for “Expected 7th Pay Commission Pay Scale Calculator as on 1.1.2016″

Thank you for using the calculator. Let us remind you once again that the calculator is purely speculative and not official. You can share your opinion and comments about this article on our Facebook page. We eagerly look forward to seeing them.