7th Pay Commission: Pay hikes set to affect from new financial year

 

New Delhi: The lower-level employees working with Central government will get a boost in their pay starting in new financial year, as pay hikes take effect.

The government should not have broken FM Arun Jaitley ’s promise with respect to Parliament.

The government was committed to raising the minimum pay from Rs 18,000 per month, with the increase of fitment factor, under Finance Minister Arun Jaitley’s promise for hiking salaries of lower-level employees beyond the 7th Pay Commission recommendations in Rajya Sabha on July 19, 2016.
There is a proposal under consideration for raising pay of lower-level central government employees upto the pay matrix level 5 from current fitment factor 2.57 to 3.00, but the central government employees unions are demanding for hike fitment factor 3.68 and minimum pay above the current Rs 18,000 to Rs 26,000, a senior government official said on condition of anonymity.
Earlier, The 7th pay panel recommended minimum pay Rs 18,000 per month while the maximum pay from Rs 2.5 lakh, with a fitment factor of 2.57 times of basic pay of 6th pay commission uniformly for replacing the 6th pay commission pay scales, which was got cabinet nod on June 29, 2016.
A union leader said, it would help lower-level employees pay for necessities, where rising costs have long outpaced pay increases for the central government employees.
“The political parties have created a system where the government pays employees less but need them to spend more,” said the leader. “That causes middle-class families to fall down the economic ladder. It’s the reason our middle class is shrinking and the reason we are facing the largest gap between upper- and lower-income in India since Independence.”
The government formed the National Anomaly Committee (NAC) in September 2016 to resolve pay anomalies, following the promise of the Finance Minister Jaitley. The minimum pay Rs 21,000 with fitment factor 3.00 was likely to be given nod by the NAC in last year.
In the meantime, the Department of Personnel and Training (DoPT) issued a letter on October 30, last year stating that the demand for increase in minimum Pay and fitment formula do not appear to be treated as anomaly, therefore, these do not come under the purview of NAC, which hurt the central government employees, and debate now continues on whether government should respect FM Jaitley’s promise of increasing pay for employees, the government official said.
He added, the government should not have broken FM Jaitley’s promise with respect to Parliament, it now falls the Finance Ministry, to make good on FM’s pay hike pledge, so the ministry is mulling to increase the pay of employees, who get salaries from pay matrix level 1 to 5, from April, ignoring the DoPT letter on October 30.
http://www.tkbsen.in/2018/02/7th-pay 

PCDA Circular No.596 – 7th Central Pay Commission – Revision of Disability/ War Injury pension for Pre-01.01.2016 Defence Forces pensioners

PCDA Circular No.596 – 7th Central Pay Commission – Revision of Disability/ War Injury pension for Pre-01.01.2016 Defence Forces pensioners

 Circular No. 596

Dated: 09th February, 2018

To,

1. The Chief Accountant, RBI, Deptt. Of Govt. Bank Accounts, Central office C-7, Second Floor, Bandre- Kurla Complex, P B No. 8143, Bandre East Mumbai- 400051
2. All CMDs, Public Sector Banks including IDBI Bank
3. Nodal Officers, ICICl/ HDFC/ AXIS/ IDBI Banks
4. Managers, All CPPCs
5. Military and Air Attache, Indian Embassy, Kathmandu, Nepal
6. The PCDA (WC), Chandigarh
7. The CDA (PD), Meerut
8. The CDA, Chennai
9. The Director of Treasuries, All States
10. The Pay and Accounts Officer, Delhi Administration, RK Puram and Tis Hazari, New Delhi
11. The Pay and Accounts Office, Govt of Maharashtra, Mumbai
12. The Post Master Kathua (J&K)
13. The Post Master Camp Bell Bay
14. The Pr. Pay and Accounts Officer, Andaman and Nicobar Administration, Port Blair

Subject: Implementation of Government decision on the recommendations of the 7th Central Pay Commission (CPC)- Revision of Disability/ War Injury pension for Pre-01.01.2016 Defence Forces pensioners reg.

Reference: This office Circular No. 570 dated 31.10.2016, Circular No. 582 dated 05.09.2017 and Circular No. 585 dated 21.09.2017.

(Available on this office website www.pcdapension.nic.in)

Copy of GOI, MOD letter No. 17(01)/2017(01)/D(Pen/Policy) dated 23rd January, 2018 on the above subject, which is self-explanatory, is forwarded herewith for further necessary action at your end.

2. In terms of Para-2 of GOI, MOD letter No. 17(01)/2017(01)/D(Pension/ Policy) dated 04th September,2017, Disability Element of Disability Pension to Armed Forces Pensioners has to be revised by multiplying the existing rate of Disability Element as had been drawn on 31.12.2015 by factor of 2.57 to arrive at revised rate of Disability Element as on 01.01.2016. Further, in terms of Para-5.2 & 5.3 of GOI, MOD letter No. 17(01)/2017(02)/D(Pension/Policy) dated 05th September’ 2017, Disability Pensionary awards has to be revised on notional pay fixation method and benefits of broad banding will be given to discharge cases also as in invalided out cases and these will be done by issuing Corrigendum Pension Payment Order (PPO).

3. Now, consequent upon the issue of GOI, MOD letter dated 23rd January, 2018, the cases where Armed Forces Pensioners who were retired/ discharged voluntary or otherwise with disability and they were in receipt of Disability/ War Injury Element as on 31.12.2015, their extent of disability/ War Injury Element shall be re-computed in the following manner given below, before applying the multiplication factor of 2.57 on existing disability/ war injury element as on 31.12.2015 for getting the revised disability/ war injury element as on 01.01.2016 in accordance to Para-2 of GOI, MOD letter No. 17(01)/2017(01)/D(Pension/ Policy) dated 04th September’ 2017.

4.  The Note below Para-12 of GOI, MOD letter No. 17(01)/2016-D(Pen/Pol) dated  29th October, 2016 (circulated vide Circular No. 570 dated 31.10.2016) stands deleted. In other words, quantum of additional pension available to old age pensioners after attaining the age of 80 years and above shall also be admissible on revised disability/ war injury element.

5. It is also stated that PDAs may take utmost care during revision of Disability/War Injury Element as per this order in those cases where the pensioners who are in receipt of 50% of Disability/ War Injury Element of Disability/ War Injury Pension. If the individual has already been given rounding of benefit through PPO (in invalided out cases) then rounding of benefit in such cases should not be given. However, where his disability was assessed as 50% in discharge cases then it will be rounded to 75% as mentioned in Para-3 above. If the PDAs found any problem regarding identification of such cases the same may please be forwarded to Audit Section of this office.

6. All Pension Disbursing Agencies handling disbursement of pension to the Defence Pensioner are hereby authorized to pay benefit of rounding off disability/ war injury and additional pension as per Para 3 & 5 above without any further authorization from the concerned Pension Sanctioning Authorities.

7. Provisions of GOI, MOD letter No. 17(01)/2017(01)/D(Pen/Policy) dated 23rd January, 2018 shall take effect from 01.01.2016.

8. This circular has been uploaded on this office website www.pcdapension.nic.in  for dissemination to all alongwith Defence pensioners and Pension Disbursing Agencies.

S/d,
Dy. Controller(P)

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7th Pay Commission: FinMin to begin work on draft proposal of central staff salary

 

Union Finance Ministry will soon begin the preparation for draft proposal related to the salaries of Central government employees, said media reports.
The Central government staff will reportedly get hiked salary beyond the recommendation of the 7th Pay Commission from April 1.
Last year in June, the Union Cabinet had approved recommendations of the CPC with 34 modifications which would reportedly put an additional annual burden of Rs 30,748 crore on the exchequer.
All the allowances are given effect from July 1, 2017.
As many as one crore central employees would get benefit from this recommendation. Of the 47 lakh central government employees, 53 lakh are pensioners.
Key highlights of the recommendations:

The minimum pay of a newly recruited government employee at entry level is increased from Rs 7,000 to Rs 18,000 per month. For a newly appointed class I officer, the minimum salary has been increased to Rs 56,100 per month.
The pay panel has also recommended to increase the maximum pay for government employees to Rs 2.25 lakh per month for top scale that includes Cabinet Secretary and others working at the same level.
The commission has also recommended a new pay matrix. Once the pay panel recommendations are implemented, the status of a government employee will not be decided by grade pay, but by the level in the new pay matrix.
The new pay structure included all existing levels and has not introduced any new levels.
As per the recommendations, all employees would be entitled to get full pay and allowances if they are hospitalised due to WRIIL-Work Related Illness and Injury Leave.
The commission has recommended a uniform fitment factor to eliminate partiality and discrimination in the system.
The panel has also suggested to retain the annual increment of 3% p.a.
For improving the quality of services, the panel has recommended to focus on individual performance. The performance benchmarks of Modified Assured Career Progression (MACP) has been altered and made stricter.
The panel report also recommends that no annual increments should be given to employees who do not meet their performance level. Besides, no promotions will be given if MACP is low for the first 20 years in service.

http://www.zeebiz.com/india 

IESM PROTEST MOVEMENT STILL ON

29 Jan 2018

JANTAR MANTAR PROTEST MOVEMENT FOR JUSTICE TO JAWAN

Dear Friends,

1.            960 days today since we launched Protest Movement at JM & at other locations across the country to get Justice to the Soldiers.   Actual OROP as our first objective remains far away.  Govt has not fulfilled its assurance given to the soldiers by PM.  Instead of correcting the OROP Anomalies which have cascading effect on our Pay, Pensions and Status, Govt has set out to defame, degrade and destroy our Protest Movement.  One Man Judicial Committee (OMJC) Report on OROP which was submitted to the Govt on 26 Oct 2016 has neither been made public nor implemented.  After making claims for over two years that OROP has been implemented, Govt has now accepted that full OROP has not yet been given.  What the Govt has implemented is one time increase in pension and not full OROP.

2.            A Sepoy with 17 years of service and his widow are getting, Rs 4296 and Rs 2548 per month less pension respectively than what should be entitled to them if full OROP is implemented.  These figures will keep on increasing since the OROP anomalies have cascading effect on our pensions and status viz other Govt Services.  It is for interest to everyone that other democracies of the world pay 15-20 percent more salary and pension to their soldiers than what India pays to it soldiers.  International Kaleidoscope of pay and pensions is under:-

          Edge in Pay and Pensions of defence Forces vis-a-vis Civilian Employees

Ser No	Countries	Notional Edge in salary as service pay or special allowance for military service	Pension Scale with notional edge for military service
(a)	U.S.A	Approx 15 to 20%	50 to 75% of last pay drawn fully protected against inflation.  For civil services the scale is 33.75% of pay as pension.
(b)	United Kingdom	10%	Uniform pension as revised irrespective of rank and date or retirement.
(c)	Australia	#2608 PA military allowance	76.5 percent of day
(d)	Japan	12 to 29% on graded scale	70 percent of pay
(e)	West Germany	5 to 10%	75% of pay
(f)	Yugoslavia	15%	85 % of pay
(g)	Nigeria	5%	80% of pay with national edge of 10% over civil scales.
(h)	France	15%	75% of pay.
(j)	Iraq	10%	70-75% of pay.
(k)	Pakistan	10-15% with other allowances	50-75% of pay with service element military pension
(l)	India	Nil	50% of pay and same is depressed by 6 to 24% in respect of Lt Col & below ranks constituting 90% of the manpower strength of the Armed Forces.

3.            Not  only  this serious disparity, the Govt has restricted financial assistance for education including professional education to the Children of Martyrs to Rs 10000/- per month, a schemes which was introduced after the 1971 WAR  of full financial assistance for their education including professional and higher studies.  This is retrograde step for the pay and pensions of soldiers.

4.       We thankfully accept that the present Govt has accepted the Concept of OROP; however, there are anomalies in its execution which remain to be corrected.  The present Govt would have got the credit of honouring its assurance to the soldier, had it implemented full OROP as per the definition given in the Govt Executive orders dated 26 Feb 2014.

5.       The approved definition of OROP by two Governments is given below.

(a) One Rank One Pension (OROP) implies that uniform pension be paid to the Armed Forces Personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension to be automatically passed on to the past pensioners. This implies bridging the gap between the rate of pension of the current pensioners and the past pensioners, and also future enhancements in the rate of pension to be automatically passed on to the past pensioners”.

(b)    Shri Bhagat Singh Koshyari RAJYASABHA COMMITTEE ON PETITIONS DATED 19 DEC 2011:-

“ One Rank One Pension (OROP) implies that uniform pension be paid to the Armed Forces Personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension to be automatically passed on to the past pensioners. This implies bridging the gap between the rate of pension of the current pensioners and the past pensioners, and also future enhancements in the rate of pension to be automatically passed on to the past pensioners”

(c)          Report of Committee of Secretaries on OROP 30 June 2009.  Relevant  Extract is as under :-

“One Rank One Pension (OROP) implies that uniform pension be paid to the Armed Forces Personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension to be automatically passed on to the past pensioners”

(d)         Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Rajeev Chandrasekhar in Rajya Sabha dated 02 Dec 2014 (Release ID :112372)

“The principle of One Rank One Pension for the Armed Forces has been accepted by the Government.

One Rank One Pension (OROP) implies that uniform pension be paid to the Armed Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension to be automatically passed on to the past pensioners. This implies bridging the gap between the rate of pension of the current pensioners and the past pensioners, and also future enhancement in the rate of pension to be automatically passed on to the past pensioners.”

5.        I had the opportunity to meet the present RM on 15 Nov 2017 in her office in a very cordial environment and briefed her in detail about the anomalies in the implementation of OROP and other important Issues of Welfare of Defence Personnel are as under. 

(a)    Implementation of Actual One Rank One Pension (OROP).

(b)    Pensions of Defence Widows.

(c)    Pensions of Defence Reservists.

(d)    Ensuring Second Career for the early Defence Retirees till the age of 60 years through the Act of Parliament.

(e)    Improvements in Medical care Scheme ECHS.  The medical procedures which have been introduced in the Country be on ECHS Procedure list within, six months of their being operational in India.

(f)     Dire need to have Veterans Hospitals on the line of other Democracies.

(g)    Need to enhance ECHS Budget to efficiently manage Super Specialty Care for the Defence Personnel and their dependents.

(h)    Need to have Covenant Act of Defence Forces on the lines of UK & other countries.

(j)    Need to expedite construction of Martyrs Memorial at India Gate.  Long delays have already been caused.

(k)    Need to enhance rates of Disability Pension for Defence Personnel.

6.       Having given the details, I would request all members of the defence Family to “Join in” to continue our struggle to get “Respect and Justice” to the soldiers and for restoration of status in all respects as existed on 26 Jan 1950.

7.       You are aware that the Govt has to implement Actual OROP and the opposition has to raise the issues of disparities and shortcomings that exist.  We had supported BJP in 2014 when the party had assured us of implementation of full OROP if it came to Power. Now, since BJP has not implemented full OROP, we have requested opposition ie (Cong and other Parties) to assist in getting actual OROP for the Welfare of Soldiers.  We neither joined BJP in 2014 nor we have joined cong now.  Some ex- servicemen for the reasons best known to them are making subjective comments that the IESM Leadership has joined Congress.  It is for from truth.  IESM and Jantar Mantar Protest Movement is for the Welfare of Defence Family and not for joining any Political Party.

8.       We appeal to all Ex-Servicemen to strengthen the Protest Movement at Jantar Mantar and other locations in the Country by Continuing to be part of it.  Every Ex-serviceman in and around NCR is requested to visit Jantar Mantar atleast once a week to Showcase Solidarity to the Cause of Soldiers.  Likewise, ESM at other locations are requested to conduct meetings at their respective places in support of Respect, Justice, Status, Actual OROP and Removal of Anomalies of 6^th & 7^th CPCs.

With regards,

                                      Yours Sincerely,

          Maj Gen Satbir Singh, SM (Retd)

          Advisor United Front of Ex Servicemen and Chairman IESM

          Mobile: 09312404269, 0124-4110570

          Email: satbirsm@gmail.com

7th Pay Commission: Salary hike may come into effect from April

Updated: Jan 25, 2018 | 09:40 IST | ET Now Digital

Fair hike for Central Government employees may come into effect by April   | Photo Credit: BCCL

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New Delhi: In what seems to be a relief to employees working for the Central government, a pay hike to provide "just and fair' compensation will come into force from April, according to a report on The Sen Times. The same was confirmed to the online publication by a top government official, who went on to say that the pay hike will be replacing pay and fitment formula for lower-level employees up to matrix level 5. The same had been recommended by the 7th Pay Commission and was approved by the Cabinet as well. 

Quoting the official, the report on the online publication stated: "This (pay hike) will be put into the Gazette in next financial year and will be implemented from April 2018." It may be noted that the recommendations of the 7th Pay Commission to increase minimum pay from Rs 7,000 to Rs 18,000 and the maximum pay from Rs 90,000 to Rs 2.5 lakh was approved by the Union Cabinet in 2016. 

As per the report, the pay panel recommendations met with several roadblocks, including pay ratio increase. Past pay commissions had managed to reduce the pay ratio, thus bridging the gap between low-earning employees and top bureaucrats in the government from 1:41 in 2947 to 1:12 in 2006. However, the 7th Pay Commission increased the ratio to 1:14.

More reservations for disabled in jobs, education: Minister urges states

This angered the central government employees' unions, who have demanded minimum pay of Rs 26,000  from Rs 18,000. In 2016, these unions even threatened to go on an indefinite strike over the issue of the pay hike. The unions backed out when Finance Minister Arun Jaitley promised to look into the matter and identify the core demands that were made. While it has been two years already, it seems the finance ministry is now edging closer to solve the existing anomalies. 

Income disparity in India has been a raging problem, with a significant wealth gap between the lower-income group and the top brass. An Oxfam study released recently showed that one percent of "rich Indians" generated 73 percent of the country's total wealth in 2017 as compared to low-salaried employees. 

Wealth of 1% 'rich' Indians increased Rs 20 lakh crore in 2017: Report

The report shows the anomalies and differences in pay. The study also stated that 67 crore Indians, comprising the population's poorest half, witnessed their wealth rise by just 1 percent. It also showed that the wealth of India's richest one percent increased by over Rs 20.9 lakh crore in the year ended 2017, which is an account of the total budget of the central government in 2017-18.

7th CPC Post-01.01.2016 retired Defence Civilian Pensioners/Family Pensioners New PPO Series

PCDA issued Circular No. C-181 No: G1/C/0199/Vol-II/Tech Dated: – 22.01.2018 regarding  Implementation of Govt. decision on the recommendations of the Seventh Central Pay Commission in respect of the Post-01.01.2016 retired Defence Civilian Pensioners/Family Pensioners  New PPO Series and details as follows.

Office of the PCDA (Pension) Allahabad is in the process to implement e-PPO’s for all categories of pensioners. In the first phase, corrigendum PPOs to revise pension of Pre- 2016 defence civilian pensioners have been issued through e-PPOs. Various PDAs have already revised pension of such pensioners. A new PPO series was introduced for these corrigendum PPOs which contained 12 digits with PPO suffix of 4 digits. For this purpose, only electronic PPOs (e-PPO) are generated which are digitally signed (No physical PPO is printed and sent to any agency). These new PPO (e-PPO) also contain a QR code wherein all important data is embedded. This QR code could be used by PDA’s to capture the data.

2. It has been decided to start e- PPOs in respect of Defence Civilians w.e.f. January, 2018. In other words, in respect of fresh retirees of Defence Civilian (retiring or being discharged) from the month of January, 2018 e-PPO will be issued with following features;

(a) These documents will be electronically generated and digitally signed.

(b) These PPOs will contain unique 12 digit PPO No. and 4 digit PPO suffix. This 12 digit PPO No.would remain valid throughout lifetime of Pensioner/Family pensioner.

(c) They will contain a QR code where data of various fields will be embedded.

3. These e-PPOs will be sent to the banks through SFTP connectivity which this office has established with various banks. Other banks, with whom there is no SFTP connectivity, are advised to immediately take necessary measures to establish the same. In the interim period till the time they establish SFTP connectivity, PPOs will be sent through email id pcdapedp.cgda@nic.in .

Similarly, these PPOs will be sent to DPDOs through the CGDA WAN. Other PDAs such as Director of all State Treasuries; IE Kathmandu, Nepal; Post Office, Kathua; PAO, Delhi etc are requested to kindly immediately provide an email ID of .nic or any other domain under control of government for this purpose.

4. The procedure of forwarding the e-PPOs will be as under:

A copy of e-PPOs, duly digitally signed, will be sent to Head of Offices (HOOs). The concerned HOO,after scrutinizing and checking the e-PPO, is requested to forward a copy of the e-PPO along withDescriptive Roll of the pensioner to PDA concerned. HOOs are also requested to kindly provide acopy of the e-PPO to the Pensioners/ Family Pensioners for their record. If any discrepancy is observed by the HOO in e-PPO or death occurs before the date of retirement/discharge, then this fact may be immediately brought to the notice of PSA and PDA for remedial measures. PDAs are advised to affect payment based on e-PPO directly received in XML/PDF file, after confirmation from Head of Offices concerned in the form of receipt of a hard copy of e-PPO and Descriptive Roll.

5. Process of verification of e-PPOs; PDAs shall take the following steps:

(a) On receipt of e-PPOs though the medium specified above, PDAs shall verify the genuineness of

the digital signature affixed on the e-PPO.

(b) Name of authorised signatories who have been provided digital signature through e- Mudra by

this office for signing of e-PPO digitally will be made available on PDAs SFTP network. All PDAs are requested to refer to their SFTP link to verify the correctness of the name of such authorised signatories for the purpose of digital signature on e-PPO accordingly in order to ensure that no PPO with unauthorized signature is acted upon.

(c) PDAs shall wait for the confirmation from the Head of Office as the case may be, before releasing the first payment and starting pension payment monthly.

(d) It shall also be confirmed by the PDA that the payment is not being released again in respect of same PPO number (including the PPO suffix of 4 digits) to the pensioner inter-alia due to duplicate receipt of e-PPO. In such a scenario, the PDA will inform the PSA that in the event of duplicate transmission of the given PPO has been detected and no action on such e-PPOs except the first one (having same 12 digits PPO No. & same suffix) has been taken.

6. The change statement regarding addition or deletion of pensioners on the strength of the Pension Disbursing Authorities may be forwarded to this office in Annexure “E” to this office Circular No. 189 dated 28.02.2017 in CSV format to e-mail ID dapaccount.cgda@nic.in . A hard copy of this change statement may also be forwarded to Shri K K Pant, SAO, O I/C Audit Section, Office of the Principal CDA (P), Allahabad-211014 in usual manner in terms of Para 17 of Annexure ‘H’ to Scheme for payment of pension of Defence Pensioners by Public Sector Banks and para 126 of Defence Pension Payment Instructions (DPPI) -2013.
7. Accordingly, the LPC-CUM-DATA Sheets (which are being used for Post-2016) i.e.Appendix – ‘E’ & ‘F’: Sanction of Pensionary Awards & Corrigendum (Circular C-154 dt/ 12.08.2016),Appendix – ‘G’ & ‘H’: Sanction of Family Pension Awards & Corrigendum (Circular C-157 dt/ 27.10.2016) have been slightly modified in following manner:

Addition: 1(A). HOO Code

1(B). Email ID of HOO Code .

Filling Instructions:

Column 1(A): Six digits HOO code which is being filled for 7th CPC revision cases (Pre-16 Civilians revisions).

Column 1(B): same email address will be filled which is registered for HOO Code.

8. In view of the above, HODs are requested to issue suitable instructions (along with copy of this circular) to all the Head of the Offices under your administrative control to ensure that these additional information should be filled in LPC-Cum-Datasheet in r/o Post-2016 of Pensioners/ Family Pensioners to this office.

Source: PCDA

7th Pay Commission: Pay hike to come into force from April

New Delhi: The pay hike to provide just and fair compensation to central government employees will come into force from April, a top finance ministry official said.

The government is committed towards its responsibilities related with FM Arun Jaitley’s assurance.

He said that the pay hike replacing pay and fitment formula for lower-level employees up to the pay matrix level 5, which had been recommended by the 7th pay commission and was approved by the Cabinet.
“This will be put into the Gazette in next financial year and will be implemented from April, 2018,” he said.
The 7th Pay Commission recommendations of minimum pay from Rs 7,000 to Rs 18,000 while the maximum pay from Rs 90,000 to Rs 2.5 lakh with a fitment factor of 2.57 times uniformly of basic pay of 6th pay commission, was given nod by the Cabinet on June 29, 2016.
The pay panel recommendations are facing various shortcomings including pay ratio.
Subsequent pay commissions had reduced the ratio of pay between lowest earning employees and top bureaucrats from 1:41 in 1947 to 1:12 in 2006, while the 7th Pay Commission increased its 1:14.
Hence, the central government employees’ unions had demanded minimum pay Rs. 26,000 instead of Rs 18,000 and 3.68 fitment factor for all employees. Accordingly, they had threatened to go on an indefinite strike over pay hike on July 11, 2016.
The unions had suspended their indefinite strike on June 30, 2016 following the assurance from the Finance Minister Arun Jaitley to look into their “core demand of increasing Pay and fitment formula” through a High Level Committee.
Jaitley reiterated this commitment in Rajya Sabha on July 19, 2016 and the government formed National Anomaly Committee (NAC) in September, 2016 instead of High Level Committee to look into various pay related anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.
However, the Department of Personnel and Training (DoPT) issued a letter on October 30, 2017 stating that the decision for increasing the minimum pay and fitment formula as per the recommendation of the 7th pay commission does not come under the anomalies and therefore the issue is not a concern of the NAC.
Reacting to the DoPT letter, the finance ministry official said that the government is committed towards its responsibilities related with Finance Minister’s assurance. Accordingly, our ministry is mulling to increase the pay of employees, who get salaries from pay matrix level 1 to 5.