7th Pay Commission: Hike now only in basic pay

New Delhi: The government is likely to implement soon the new pay structure for central government employees excluding allowances, the compensatory perks for all employees.

Though some central government employees oppose this exclusion, the finance ministry officials said the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th Pay Commission on allowances including HRA, transport allowance.
The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months, till a final decision, all existing allowances will continue to be paid at the existing rates, they added.
No Dearness allowance (DA) will be paid in the new pay matrix (basic pay) as the existing dearness allowance 125 per cent has been merged with the new basic pay.
A fitment factor of 2.57 will be applied across all levels in the pay matrices. After taking into account the DA at prevailing rate 125 per cent, accordingly, the salary of all government employees will be raised by at least 14.29 % as on January 1. However, the rate of annual increment has been retained at 3%.
The Finance ministry placed the new wage structure in the cabinet on June 29, The cabinet gave nod for the implementation of the recommendations of the 7th Pay Commission on pay and pension benefits to 4.7 million central government employees 5.3 million pensioners. It will come into effect from January, 2016.
“The notification of 7h Pay Commission recommendations now will be issued shortly, so the central government employees will get the increased salaries under the new pay matrix from August,” according to the officials.
This means though the new pay structure has been in place since January 1, the central government employees will start drawing the increased salaries from August and the arrears will be paid during the current financial year.
However, there is resentment from Central government employees’ Unions in respect of minimum pay, they are demanding minimum pay Rs. 26,000 instead of Rs 18,000 and 3.68 fitment factor instead of 2.57. The government assured them to consider their demands through a High Level Committee, which will soon be set up and the government will take steps accordingly.
“It’s notification will be issued within one month after the decision of High level Committee coming stipulated time frame i.e. four months.
However, the notification on 7th Pay Commission recommendations, which has been approved by the cabinet, is under process in the Finance Ministry and the Finance Minister Arun Jaitley is pressing hard to issue it very shortly,” they told The correspondent.

Supreme Court seeks government’s response on ex-servicemen’s plea on OROP

The Indian Ex-servicemen Movement (IESM) and others have challenged the government’s policy of periodic review of pension once in five years.

Supreme Court on Monday sought the government’s response on a plea of an ex-servicemen’s body seeking implementation of One Rank—One Pension (OROP) as recommended by the Koshyari Committee with an automatic annual revision, instead of the current policy of periodic review once in five years.

A bench comprising Justices Dipak Misra and C Nagappan issued notice and sought the response from the government in eight weeks.

The Indian Ex-servicemen Movement (IESM) and others have challenged the government’s policy of periodic review of pension once in five years, saying such an approach was dilution of the February 26, 2014 announcement by which the revision in pension was to automatically pass on to the past pensioners on an annual basis.

They have contended that five-yearly periodic review did not meet the demand of the ex-servicemen seeking OROP for the service personnel who had retired with same length of service in the same rank.

“OROP is the uniform desire of all three defence services. Ex-servicemen are presently drawing pension that is not consistent with their rank and/or length of service. In fact, some ex-servicemen are even drawing lesser pension than other ex-servicemen who retired with a subordinate rank or (in the same rank) which is unjust and unconstitutional,” the petition said.

It said that the Centre’s February 3, 2016 letter sent to the chiefs of Army, Navy and Air Force on OROP was “unjust, arbitrary and violative of Article 14 and 21 of the constitution.”

The plea sought a direction to the Centre “that the pension of past pensioners be automatically and contemporaneously enhanced, whenever there is any future increase or enhancement in the rates of pension.”

It further said the government should be directed to fix the pension on the basis of highest pension of financial year 2014—15 and not 2013.

IESM in its petition has referred to the December 19, 2011, report of Rajya Sabha’s Petition Committee then headed by Bhagat Singh Koshyari which rejected all reservation advanced by the government while “strongly recommending” OROP.

In its 142nd report, the Koshyari Committee had said, “the Committee strongly recommends that Government should implement OROP in the defence forces across the board at the earliest”.

No clarity in the Press Statements of both Government and NJCA on 7th CPC issues

NJCA need to Clarify the Doubts over 7th CPC Issues

No clarity in the Press Statements of both Government and NJCA on 7th CPC issues
The six days Drama was come to an end yesterday. After the Union Cabinet Approved the implementation of 7th CPC Recommendations on 29th June 2016, a Meeting of NJCA leaders held on the next day on 30th June 2016. After the NJCA Meeting, some Leaders met the Group of Ministers at Home Minister’s Residence. It is said to be an informal meeting, so no any official announcement was made by Govt regarding this Meeting. But NJCA leaders told that GOM assured that they would refer this issue to a committee to review.
The same day, SRMU has declared that the Indefinite Strike is postponed based on the Govt assurance. From that day onwards there was lot of drama going on day to day over the issues of 7th CPC and Indefinite Strike
As per schedule the NJCA Leaders met on 6th July 2016 to decide on future course of Action. But the meeting was ended with a decision to postpone the Strike Action.
Finally, the Six Days confusion come to an end on 6th July after NJCA and Ministry of Finance issued Press Statements.
But Still there is no Clarity in these press statements on the following issues.
1. When will Notification for implementation of 7th CPC recommendations be published?
2. When will the CG Employees get 7th CPC salary.?
3. Why all allowances including HRA and TA referred to committee?
4. When will the revised rate of HRA and TA come into effect?
5. Does the NJCA really believe the proposed committee will recommend to increase Minimum Pay and Fitment Factor…?
6. If they believe so, why didn’t they say anything about the date on which the 7th CPC come into force…?
7. If 7th CPC comes into force from this Month, Does the NJCA believe the Minimum Pay and Fitment factor will be increased after four months?
8. Do the Govt and NJCA assure No Committee will be formed after four months…?
The NJCA has to clarify all these doubts to Central Government employees.

DATED - 07.07.2016

STRIKE IS DEFERRED, BUT THE STRUGGLE SHALL CONTINUE

Finally, the united struggle of 33 lakhs Central Government Employees under the banner of National Joint Council of Action (NJCA) comprising Railways, Defence and Confederation has compelled the totally negative and unwilling NDA Government to negotiate with the staff side leaders. Hon’ble Prime Minister has intervened and directed three Cabinet Minsters viz. Home Minister Shri Rajnath Singh, Finance Minister Shri Arun Jaitly and Railway Minister Shri Suresh Prabhu to hold discussion with the NJCA Leaders on 30^th June 2016. After discussing the demands raised in the Charter of demands, the Ministers assured that a high level committee will be constituted to consider the demands raised by NJCA especially the demand for improving the minimum wage and fitment formula.

As no written communication or minutes regarding the assurances given by Group of Ministers is forthcoming, the NJCA met again and 6^th July and decided to go ahead with the strike decision. Again Home Minister Shri Rajnath Singh called the NJCA leaders for discussion on 6^th July and reiterated the assurances already given on 30^th June and stated that the Finance Minister will issue a press statement on 6^th July itself confirming the assurances given by the Group of Ministers. It was further assured by the Minister that the proposed High level committee will submit its recommendations to Government within a time frame.

Accordingly, the Government issued the press statement and after detailed deliberations the NJCA unanimously decided to defer the indefinite strike till the committee finalizes its report. The press statement of the NJCA and the Government are attached.

(M. Krishnan)

Secretary General

Confederation

E-mail: mkrishnan6854@gmail.com

Employees grievances on 7th CPC to be referred to high-level panel

The representatives of the employees unions had earlier conveyed to the Centre that they did not want it to approve the CPC's recommendations on allowances without examining them further

The representatives of the employees unions had earlier conveyed to the Centre that they did not want it to approve the CPC's recommendations on allowances without examining them further
The representatives of the employees unions had earlier conveyed to the Centre that they did not want it to approve the CPC's recommendations on allowances without examining them further
The government on Wednesday said the concerns raised by central government employees’ unions on the recommendations of the Seventh Pay Commission would be examined by a high-level committee of secretaries.

Representatives from various unions met Home Minister Rajnath Singh, Finance Minister Arun Jaitley and Rail Minister Suresh Prabhu on June 30. “They had requested that certain issues related to the pay scales and other recommendations of the Pay Commission  to be raised before a committee of secretaries looking into grievances of employees,” a statement said.

“The ministers assured the union leaders that the issues raised by them would be considered by a high level committee,” it said.

On June 29, Jaitley had said that a committee under Finance Secretary Ashok Lavasa would be set up to examine the suggestions of the Seventh Pay Commission on allowances. Of 196 allowances, the CPC report had recommended abolition of 52 altogether and subsuming of another 36 into larger existing ones.

The government’s statement did not clarify whether this committee is the high level panel it spoke of.

The representatives of the employees unions had earlier conveyed to the centre that they did not want it to approve the CPC’s recommendations on allowances without examining them further.
http://www.business-standard.com/article/economy-policy/employees-grievances-level 

Government assures Representatives of Unions representing employees of the Central Government that the issues raised by them relating to the pay scales and other recommendations of the 7th Pay Commission would be considered by a High Level Committee

Representatives of Unions representing employees of the Central Government had met the Home Minister Shri Rajnath Singh, the Finance Minister Shri Arun Jaitley and the Minister for Railways Sh. Suresh Prabhu in the evening of 30th June, 2016.

They had requested that certain issues raised by them in relation to the pay scales and other recommendations of the Pay Commission be allowed to be raised before a Committee of Secretaries looking into different aspects of grievances of employees in relation to the Pay Commission recommendations.

The Ministers assured the Union leaders that the issues raised by them would be considered by a High Level Committee.

CHENNAI, July 5, 2016 Updated: July 5, 2016 07:51 IST 

NJCA defers indefinite strike

The National Joint Council of Action (NJCA), an umbrella organisation comprising various Central Government employees’ unions, has temporarily postponed the indefinite strike scheduled from July 11 after Prime Minister Narendra Modi formed a committee of Ministers to negotiate with union leaders on their demands.

NJCA convener (South Zone) N. Kanniah said even as the Cabinet approved the 7th Pay Commission, representatives of various unions, including the All India Railwaymen Federation, decided to go ahead with the proposed strike demanding a minimum pay of Rs. 26,000.

The claim that the government was giving a 14.28 per cent hike in pay was false since the calculations revealed an increase of only 11.31 per cent, which would further decline to 4.51 per cent after deductions towards provident fund and pension scheme contributions.

Mr. Kanniah, who is also the general secretary of Southern Railway Mazdoor Union, said the unions were opposed to privatisation and foreign direct investment in Defence, Railway etc.

“Since the Prime Minister has intervened and initiated the process of negotiation, we have decided to temporarily postpone the indefinite strike. The NJCA will make sure that the genuine demands of the employees are met with,” he said.

http://www.thehindu.com/news/cities/chennai/njca-defers-indefinite-strike/