7th Pay Commission recommends enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh from 01.01.2016

7th CPC increased Gratuity Ceiling limit – 20 lakh from 1.1.2016

Enhancement in the Gratuity Ceiling and its Indexation

The Commission recommends enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh from 01.01.2016.

A number of representations have been received by the Commission stating that there is a need to revise the existing ceiling of ₹10.00 lakh with regard to payment of service gratuity.

Analysis and Recommendations : Rule 49 and 50 of the CCS (Pension) Rules provides that a government servant is entitled to get retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service subject to a maximum of 16.5 times of the last emoluments subject to a maximum of ₹10 lakh.

The Commission sought the views of the government in this regard. The Department of Pension and Pensioners Welfare stated that the VI CPC has increased the amount of gratuity from ₹3.5 lakh to ₹10 lakh w.e.f. 01.01.2006. This amount, in the view of the department, is not commensurate with emoluments that are available to senior officers at the time of retirement. The department has suggested to the Commission that a view could be taken to index gratuity with amount of DA admissible at the time of retirement.

The Commission notes that there is merit in the argument advanced to index the ceiling on gratuity so that the benefits of the enhanced ceiling are available to personnel in a manner which is more even over a time frame.

The Commission recommends enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh from 01.01.2016. The Commission further recommends, as has been done in the case of allowances that are partially indexed to Dearness Allowance, the ceiling on gratuity may increase by 25 percent whenever DA rises by 50 percent.

Authority: 7th CPC Report

7th Pay Commission Recommendations on Health Insurance Scheme

7th Pay Commission Recommendations on Health Insurance Scheme

Health Insurance Scheme : In this backdrop, the Commission opines that health insurance for the government employees and pensioners remains the most optimal route for ensuring complete coverage for all employees, pensioners and their dependants in the long run. The IV CPC had suggested that feasibility and modalities of an Insurance Scheme for government employees in lieu of medical reimbursement may be considered by the government.

The VI CPC had recommended introduction of a health insurance scheme for Central Government employees and pensioners. It had recommended that for existing employees and pensioners, the scheme should be available on a voluntary basis, subject to their paying the prescribed contribution. It had also been recommended that the health insurance scheme should be compulsory for new government employees who would be joining service after the introduction of the Scheme.

Similarly, it had recommended that those retiring after the introduction of the insurance scheme would be covered under the Scheme.

The Commission observes that in view of the recommendations of the earlier Pay Commissions and various high power committees, the government has been contemplating the introduction of a health insurance scheme on Pan-India basis. The Commission notes that although the Committee of Secretaries had given its ‘in principle’ approval way back in 2011, and an amount of ₹ 2,061 crore had been earmarked under the XII Five Year Plan, the Scheme has still not been implemented.

The Commission notes that given the tardiness in the introduction of the long awaited Insurance Scheme, as already mentioned earlier in this chapter, the pensioners residing outside CGHS area will continue to be at a disadvantage, in terms of medical facilities, compared to their counterparts residing in CGHS areas. As stated earlier in this chapter, according to existing provisions, pensioner residing outside CGHS area but subscribing to CGHS for OPD/IPD can avail medical facility from any hospital–private or public or empanelled under CS (MA)/ECHS–in his/her own city. However, in such cases, the pensioners have to make upfront payment to the hospital and claim reimbursement later. The Commission feels that this could be a limiting factor for many pensioners who may not have the resources to pay hospital expenses upfront. The Commission notes that under CS (MA) Rules/ECHS, there are empanelled hospitals in every part of the country, at least in all major locations. In this backdrop, after identification of some major centres/cities based on minimum population threshold of pensioners, these hospitals could be empanelled by CGHS as well, for extending

medical facilities on a cashless basis.

Considering all the issues, the Commission makes the following recommendations:

i. The Commission strongly recommends the introduction of health insurance scheme for Central Government employees and pensioners. In the interregnum, for the benefit of pensioners residing outside the CGHS areas, the Commission recommends that CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis. This would involve strengthening of administrative capacity of nearest CGHS centres. However, this step will go a long way in ameliorating the pending grievances of these pensioners.

ii. The Commission recommends that the remaining 33 postal dispensaries should be merged with CGHS. The Commission further recommends that all postal pensioners, irrespective of their participation in CGHS while in service, should be covered under CGHS after making requisite subscription.

iii. Currently, there are various health care schemes in the Central Government catering to specific sets of employees. For example, apart from CGHS, there are Ex-Servicemen Contributory Health Scheme (ECHS) and Railways Employees Liberalized Health Scheme (RELHS) which cover ex servicemen and Railway employees/pensioners, respectively. Although the patterns in these schemes vary, a combined entity of CGHS ECHS-RELHS

would result in a very strong network of health facilities for the Central Government employees across the length and breadth of the country. The Commission recommends that possibility of such a combined network of various medical schemes should be explored through proper examination.

Based on the recommendations of the VI CPC, the Government has been contemplating introduction of a Health Insurance Scheme. The Commission observes that there are many global health care insurance companies today who provide comprehensive health care coverage. Through suitable tie ups with these companies, the government may examine the possibility of enhancing the remit of the proposed Health Insurance Scheme to include all the officers/staff and their dependents posted in Embassies/Missions abroad. Needless to state, this should be preceded by a thorough examination of the annual costs involved under the AMA Scheme vis-à-vis likely annual cost under the insurance route.

Authority: 7th CPC Report

Payment of OTA at double rate to all para-medical staff

Payment of OTA at double rate to all para-medical staff working in Ordnance Factories Hospital

Instruction No.3460/2015/per/policy

To
The Sr.General Manager(s)/General Manager(s) of all Ordnance & Ordnance Equipment Factories

Sub:Payment of OTA at double rate to certain categories of staff viz.Cook,Mali,Dhobi,Masalchi,barbar etc.Working in ordnance Factories Hospital.

Ref: (i) OFB Instruction No.2009/A/A/dated 27-03-2001.
        (ii) CAT Mumbai Bench at Nagpur Order dated 28-03-2014 in O.A No.2181/2009-DPUikey &Ors-v-UOI&Ors.

Attention is drawn to O F Board Instruction dated 27-03-2001 cited under ref(i) vide which extension of benefits of payment of OTA at double rate to all para-medical staff working in Ordnance Factories Hospital was issued.

02.Attention is also drawn to pare 2 of the said instructions dated 27-03-2001.vide which it was indicated that the employees like Cook,Mali,Dhobi,Masalchi,barbar etc.Working in ordnance Factories Hospital would continue to get overtime allowance at slab rate under the existing Govt order dated 19-03-1991 issued by DOP&T and will not be covered under the proviso of the above instruction dated 27-03-2001.

03.Pursuant to the implementation of 6th CPC recommendation,neccessary order for payment of overtime allownace and revised rates for all employees including para-medical staff was issued except the employees like Cook,Mali,Dhobi,Masalchi,barbar etc.Working in ordnance Factories Hospital.The said employees were getting OT at slab rate after implementation of 6th CPC.

04.The matter was subjected to challenge before the Central Administrative Tribunal,Mumbai Bench at Nagpur and in terms of order dated 28-03-2014 delivered by Hon'ble CAT in O.A No2181/20019 to pay OT at double rate from 02-07-2009,MOD in consultation with Defence Finance,Department of expenditure,DOP&T,Ministry of Law and Ministry of Labour has approved the proposal for payment of OT at double rate to the employees like Cook,Mali,Dhobi,Masalchi,Barbar etc on par with para-medical staff working in ordinacne Factories Hospital.

05.Accordingly such employees are entitled to get OT arrear at double rate from 02-07-2009 and all OFs are requester to take neccessary action accordingly.

Dr(Smt.)Vani A.Singh
Director/Admin
For Director General,Ordinace Factories

Comments of BPMS on the recommendations of 7th CPC - Central Government Employees

BPMS comments on 7th CPC recommendations related to Central Government Employees

BHARATIYA PRATIRAKSHA MAZDOOR SANGH

(AN ALL INDIA FEDERATION OF DEFENCE WORKERS)

(AN INDUSTRIAL UNIT OF B.M.S.)

(RECOGNISED BY MINISTRY OF DEFENCE, GOVT. OF INDIA)

REF: BPMS / OFB / 7th CPC / 251 (8/2/M)

Dated: 09.12.2015

To,

The Secretary,

Govt of India, Min of Defence,

South Block, DHQ PO,

New Delhi – 110011.

Kind Attn.: Shri Gurdeep Singh, US (D/Civ-I), MoD

Subject: Views/Comments of BPMS on the recommendations of 7th CPC.

Reference: Your letter No. 11(4)/2015-D(CIV-I), Dated 04.12.2015

Respected Sir,

With due regards, it is submitted that this federation has gone through the recommendations of 7th CPC and found that the recommendations are very disappointing. It appears that the 7th CPC has not considered the genuine demands of the Government employees including Civilians in Min of Defence in correct perspective. Report of 7th Central Pay Commission has led the Group ‘C’ employees in huge discontentment because 5th CPC and 6th CPC had already granted less financial benefit to the incumbents of Group ‘C’ in comparison to Group ‘A’ and Group ‘B’. Group ‘C’ employees were very much hopeful that this Pay Commission would do something better for them but non-fulfillment of their hope by 7th CPC has led Group C employees in discontentment. A few points are being put before Ministry of Defence with an expectation that it will do justice to Group ‘C’ employees.

The points are as under-

1. The ratio of minimum and maximum pay (Secretary level, not Cabinet Secretary) was 1:10.66 in 4th CPC. Further it was 1:10.19 in 5th CPC and 1:11.42 in 6th CPC. 7th CPC has extended it to 1:12.5 whereas it had been recommended in previous Pay Commissions the ratio of minimum and maximum pay should not exceed 1:8. The pay scale of officers of Secretary level has been recommended Rs 2,25,000/- and minimum pay has been recommended Rs18,000/-. You are requested to reduce this wide gap by enhancing the minimum pay to Rs 24,000/- from the proposed Rs. 18000/-

2. 6th CPC had granted more benefit to Group A and Group B officers as it had merged the Pay Scale of (5000-8000) and (5500-9000) and upgraded to Rs (6500-10500) and the pay scale of Rs. (6500-10500) and (7450-11500) had been merged, whereas none of the Pay Scales of Group C had been merged nor upgraded. It was expected to 7th CPC that it would grant some relief by merging and upgrading the Pay Scale of Group ‘C’ employees. But it did not happen. Educational qualification has been raised with respect to Pay Scale of Group C employees but Pay Scales have not been upgraded. You are requested to grant new Pay Scale of 7th CPC related to Grade Pay 2400/- by merging Grade Pay 1900 and Grade Pay 2000 and upgrading these scales to 2400/- so that Lower Division Clerks, Store Keepers, Skilled Industrial Employees, Firemen etc. may get justice. Further, new pay scale of 7th CPC related to GP 2800/- should be granted to the incumbents (like UDC, Stenographers etc.) by upgrading Grade Pay 2400/- to Grade Pay 2800/- to get justice.

3. Fitment Formula:- This CPC also applied higher Multiplying Factor of 2.72 & 2.81 for higher authorities like PB-4 whereas this has been fixed as 2.57 for PB-1 & 2.62 for PB-2. There must be uniformity in the Multiplying Factor. Further, to achieve the enhanced Minimum Pay Rs. 24000/- the Fitment formula for PB-1 & 2 should be fixed at 3.42 in place of 2.57.

4. Annual increment has been recommended 3% again, it should be enhanced to 5%. Employees are not getting their annual increment even after completing 12 months because 6th CPC has fixed July month for annual increment for all employees. They get their annual increment between 13 months and 17 months. This anomaly should be removed. The employee must be granted his annual increment just after completing 12 months from the enrollment date.

5. Modified Assured Career Progression:- 5th CPC had recommended for two financial up-gradation in the promotional hierarchy on completion service of 12 years and 24 years respectively that had been implemented by the Government from the dated: 09/08/1999. But 6th CPC had recommended for 3 financial upgradations in next Grade Pay after completing 10, 20 and 30 years of service respectively. Government granted these up-gradations in next Grade Pay in place of next Promotional Grade Pay and reduced the benefit given by the earlier government. Therefore, you are requested to issue necessary directives to implement MACP for granting next Promotional Pay Scale in place of immediate next level in the hierarchy.

Further, 5 financial upgradations under the MACP Scheme should be granted in place of 3 upgradations within service of 30 years. 07th CPC has upgraded the benchmark of Very Good in place of Good for grant of MACP which is not acceptable, hence, it should be retained Good.

6.  Allowances: – 7th CPC has recommended for abolishing 52 Allowances. To abolish Washing Allowance & Risk Allowance, Family Planning Allowance is very unfortunate. Risk Allowance covers those situations where the risk is inherent and continuous in the occupation itself with adverse effect on the health. Risk Allowance is presently given to employees engaged in hazardous duties or whose work will have deleterious effect on health over a period of time.

Risk Allowance is also paid to Sweepers and Safaiwalas engaged in cleaning of underground drains, sewer lines as well as to the employees working in trenching grounds and infectious diseases hospitals. Washing Allowance is paid to all common categories of Group ‘C’ & ‘D’ employees who have been supplied with uniform as per DoP&T letter no. 14/3/2008-JCA dated 11.09.2008 at the rate of Rs. 60/- per month, on the other hand Industrial Employees are eligible for washing allowance @ Rs. 16/- per month for washing of liveries.

Family Planning Allowance (FPA) is granted to Central Government employees as an encouragement to adhere to small family norms. The existing rates are Rs. 210/- to 500/- per month for Group ‘C’ & ‘B’ employees. You are requested to continue these allowances.

House Rent Allowance: – Sir, in present there has been a steep hike in the rent of house. Minimum rent of two rooms flat/house falls between Rs 20000/-and 40000/- in metropolitan city and it falls between 10000 and 15000 in group A cities. In such a situation reducing the rate of HRA does not justify. It should be enhanced to 15%, 25% and 35% from 8%, 16% and 24% respectively.

7. National Pension System: – Keeping social security of employees in mind Pension and Gratuity were granted after retirement which has been replaced by Contributory Pension Scheme (NPS) since January 2004. It has created a scenario of uncertainty. Even 7th CPC did not recommend anything on the matter. This federation has been demanding to scrap this NPS. Otherwise Govt of India should guarantee that none of the NPS holder would get the pension less than 50% of his last pay.

8. Fixation of Pay on Promotion: – Recommendation of one increment of 3% on Promotion cannot be justified. At least two increments should be granted on Promotion.

9. Abolishment of Interest Free Advances:- In Para 9.1.4 the 07th CPC has stated that the amount of interest free advances is quite low, hence, all the interest free advances, mentioned below, should be abolished:-

(i) Bicycle Advance,

(ii) Warm Clothing Advance,

(iii) Advance of pay on transfer,

(iv) Advance of TA on Tour/Transfer/Retirement,

(v) Advance of TA to the family of a deceased Govt employee,

(vi) Advance of leave salary,

(vii) Advance in connection with Medical treatment,

(viii) Festival Advance,

(ix) Advance of LTC,

(x) Advance in the event of Natural Calamity like, flood, cyclone,

(xi) Advance for training in Hindi and

(xii) Advance for Law Suits.

India is a country of diversities. Considering the importance of festival Government has granted the facility of Festival Advance which is recovered within a year in easy installments. But the recommendation of abolishing Festival Advance has hurt the feelings of employees very much. How 07th CPC has concluded that advance for Medical Expenses, LTC, TA on tour/transfer/death of employee is a low amount or interest free advance or advance in case of natural calamity is unjustified cannot be understood.

In this regard, entire recommendation of 07th CPC should not be given cognizance and even the amount of the some of the interest free advances like

Festival, Warm Clothing, and Natural Calamity etc. should be enhanced appropriately.

10.Overtime Allowance to the employees posted in Offices is being paid at slab rate @Rs. 12/- per hour on the recommendation of 4th CPC. It is matter of great concern that 5th CPC & 6th CPC had not enhanced the rate and now this 7th CPC recommends for 50% hike in the OTA. This is a exploitation of the duty bound Govt Employees.

11. This CPC has not reduced the period of restoration of commuted portion of pension from 15 yrs to 12 yrs.

12. 7th CPC sympathetically considered the problems of single male parent so extended the benefit at par with female employee. But on the other hand it has recommended that 1st 365 days of CCL will be paid at 100% and 2nd 365 days CCL will be paid at the rate of 80% which will cause great discontentment amongst the female employees.

13. Highly Skilled Direct Recruited – In Corps of EME, Air HQ, Naval HQ of Ministry of Defence there are sufficient number of the workers who have been recruited directly as Highly Skilled (earlier it was HS-I, prior to merger of HS-II & HS-I) and their line of promotion was Chargeman on completion of 10 years of service. But now a days, their line of promotion is too long after introduction of bifurcation system from HS to HS-I & HS-II and Master Craftsman in hierarchy for Chargeman, which is not correct and adversely affecting to their morale. It is mentionable here that the entry qualification has been enhanced to B.Sc. with Physics, Chemistry & Mathematics due to functional requirement and technical advancements. It is also mentionable that the cadre is available only in the Corps of EME. Hence it is requested that directly recruited as HS again be appoint as HS-I and their first promotion should be Chargeman as was existed earlier.

14. Technical Pay to Defence Civilians :- Since defence civilian employees (Technical) are engaged in Refitting/Repair/ Modernization/upgradation of machinery /equipments / weapons as well structural maintenance and upgradation of warships/submarines, handling, repairs, preparations, modernization / upgradations of various types of sophisticated missiles and torpedoes are also being carried out by civilian employees of Navy, Air Force & EME. Technical Allowances (Airworthiness Certificate Allowance / Flight Charge Certificate Allowance / Aeronautical Technical Allowance / Submarine Allowance, Sea/Field Trial Allowance) are given to combatants in Army, Navy, Air Force etc. and denied to Civilians deployed on similar type of Jobs.  Hence it is proposed that this allowance be given to Civilians at par with Combatants.

On the recommendations of the 06th CPC, Govt of India has sanctioned Technical Pay at the following rates for the uniform personnel:-

Airworthiness Certificate Allowance : Rs. 225 to 400/- per month

Aeronautical Allowance : Rs. 300/- per month

Flight Charge Certificate Allowance : Rs. 375 to 600/- per month

Submarine Duty Allowance : Rs. 45 to 135/- per day

Submarine Technical Allowance : Rs. 300/- month

This 07th CPC has recommended to enhance these allowances to 1.5 times. Hence, this federation demands very strongly that Technical Pay/Allowance has to be extended to the civilian employees those are involved in technical work job as described above.

15. Special Compensatory (Hill Area) Allowances: in Para 8.10.80 the 07th CPC has recommended that there is hardly any hardship involved at altitudes of 1000 meter above sea level and it should be abolished. The incumbents working in such areas like Ordnance Factory Dehradun etc. are getting this allowance at the rate between Rs. 720/- to 900/- per month. Hence, it is demanded that this allowance may be replaced by Tough Location Allowance-III as mentioned in Para. 8.10.76 (R3H3) at the rate between Rs. 1000/- to 1200/-.

16.Non-Matriculate appointed on Compassionate Grounds: Due to implementation of the recommendations of 06th CPC, vide O.M. No. 14014/2/2009-Estt(D), dated 11.02.2009 & 03.04.2012 DoP&T has issued instructions that a person who does not fulfill educational qualification of a post can be appointed as “Trainee”. A person appointed as a “Trainee” enjoys the status of Government servant from initial day and will be allowed all the allowances and benefit allowed to a government servant but he has to acquire minimum educational qualifications in 05 yrs.

07th CPC has not mentioned about such “trainee” government servant. Hence, it should be clarified about the revision of pay of existing non-matriculate trainees who have completed more than 05 yrs service and future induction of non-matriculates. Apart from above, this federation has reflected its views on the cadre related matters of OFB (copy enclosed), which may be considered with mutatis mutandis in other Directorates of MoD.

Sir, it is humble request to you to kindly consider the above in correct perspective and take appropriate directives to the authorities to redress the above anomalies/grievances arising out of recommendations of 07th CPC.

Thanking you.

Enclosed : As mentioned

Sincerely yours

(M P SINGH)

General Secretary

Source: BPMS

Enhanced Family Pension : No Change is being recommended by 7th CPC

Enhanced Family Pension : No Change is being recommended by 7th CPC

Increasing the existing time period of seven years for enhanced family pension

The Commission has received representations seeking enhancement in the period of enhanced family pension from the existing seven years or 67 years, whichever is less, to ten years in case of death of retirees.

Analysis and Recommendations : The current rates of enhanced family pension are–

i. In the case of death in service: Payable to the family of a government servant for a period of ten years from the date of death of a government servant, without any upper age limit.

ii. In the case of death after retirement: Payable for a period of seven years or up to the date on which he would have attained 67 years had he survived, whichever is less.

The Commission notes that the revision with regard to period of eligibility for the enhanced family pension of ten years was made based on recommendations of the VI CPC Report. No further change is being recommended by this Commission.