Recommended Date of
implementation: 01.01.2016
Minimum Pay: Based on the Aykroyd formula, the minimum
pay in government is recommended to be set at ₹18,000 per
month.
Maximum Pay: ₹2,25,000
per month for Apex Scale and ₹2,50,000
per month for Cabinet Secretary and others presently at the same pay level.
Financial Implications:
The total financial impact in
the FY 2016-17 is likely to be ₹1,02,100 crore, over the expenditure as
per the ‘Business As Usual’ scenario. Of this, the increase in pay would
be ₹39,100
crore, increase in allowances would be ₹ 29,300 crore and increase in pension would be ₹33,700
crore.
Out of the total financial
impact of ₹1,02,100 crore, ₹73,650
crore will be borne by the General Budget and₹28,450
crore by the Railway Budget.
In percentage terms the overall
increase in pay & allowances and pensions over the ‘Business As Usual’
scenario will be 23.55 percent. Within this, the increase in pay will be 16
percent, increase in allowances will be 63 percent, and increase in pension
would be 24 percent.
The total impact of the
Commission’s recommendations are expected to entail an increase of 0.65
percentage points in the ratio of expenditure on (Pay+Allowances+ Pension) to
GDP compared to 0.77 percent in case of VI CPC.
New Pay Structure: Considering the issues raised regarding
the Grade Pay structure and with a view to bring in greater
transparency, the present system of pay bands and grade pay has been
dispensed with and a new pay matrix has been designed. Grade Pay has been
subsumed in the pay matrix. The status of the employee, hitherto determined by
grade pay, will now be determined by the level in the pay matrix.
Fitment: A fitment factor of 2.57 is being proposed
to be applied uniformly for all employees.
Annual Increment: The rate of annual increment is being
retained at 3 percent.
Modified Assured Career
Progression (MACP):
Performance benchmarks for MACP
have been made more stringent from “Good” to “Very Good”.
The Commission has also
proposed that annual increments not be granted in the case of those employees
who are not able to meet the benchmark either for MACP or for a regular
promotion in the first 20 years of their service.
No other changes in MACP
recommended.
Military Service Pay (MSP): The Military Service Pay, which is a
compensation for the various aspects of military service, will be admissible to
the Defence forces personnel only. As before, Military Service Pay
will be payable to all ranks up to and inclusive of Brigadiers and their
equivalents. The current MSP per month and the revised rates recommended are as
follows:
Present
|
Proposed
|
||
i.
|
Service
Officers
|
₹6,000
|
₹15,500
|
ii.
|
Nursing
Officers
|
₹4,200
|
₹10,800
|
iii.
|
JCO/ORs
|
₹2,000
|
₹
5,200
|
iv.
|
Non Combatants (Enrolled) in the Air
Force
|
₹1,000
|
₹
3,600
|
Short Service Commissioned
Officers: Short Service Commissioned Officers
will be allowed to exit the Armed Forces at any point in time between 7 and 10
years of service, with a terminal gratuity equivalent of 10.5 months of
reckonable emoluments. They will further be entitled to a fully funded one year
Executive Programme or a M.Tech. programme at a premier Institute.
Lateral Entry/Settlement: The Commission is recommending a
revised formulation for lateral entry/resettlement of defence forces personnel
which keeps in view the specific requirements of organization to which such
personnel will be absorbed. For lateral entry into CAPFs an attractive
severance package has been recommended.
Headquarters/Field Parity: Parity between field and headquarters
staff recommended for similar functionaries e.g Assistants and Stenos.
Cadre Review: Systemic change in the process of Cadre
Review for Group A officers recommended.
Allowances: The Commission has recommended abolishing
52 allowances altogether. Another 36 allowances have been abolished as separate
identities, but subsumed either in an existing allowance or in newly proposed
allowances. Allowances relating to Risk and Hardship will be governed by the
proposed Risk and Hardship Matrix.
Risk and Hardship Allowance: Allowances
relating to Risk and Hardship will be governed by the newly proposed nine-cell
Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to
include Siachen Allowance.
The current Siachen Allowance
per month and the revised rates recommended are as follows:
Present
|
Proposed
|
||
i.
|
Service Officers
|
₹21,000
|
₹31,500
|
iii.
|
JCO/ORs
|
₹14,000
|
₹21,000
|
This would be the ceiling for
risk/hardship allowances and there would be no individual RHA with an amount
higher than this allowance.
House Rent Allowance: Since the Basic Pay has been revised
upwards, the Commission recommends that HRA be paid at the rate of 24 percent,
16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities
respectively. The Commission also recommends that the rate of HRA will be
revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50
percent, and further revised to 30 percent, 20 percent and 10 percent when DA
crosses 100 percent.
In the case of PBORs of
Defence, CAPFs and Indian Coast Guard compensation for housing is presently
limited to the authorised married establishment hence many users are being
deprived. The HRA coverage has now been expanded to cover all.
Any allowance not mentioned in
the report shall cease to exist.
Emphasis has been placed on
simplifying the process of claiming allowances.
Advances:
All non-interest bearing
Advances have been abolished.
Regarding interest-bearing
Advances, only Personal Computer Advance and House Building Advance (HBA) have
been retained. HBA ceiling has been increased to ₹25 lakhs
from the present ₹7.5 lakhs.
Central Government Employees
Group Insurance Scheme (CGEGIS): The Rates
of contribution as also the insurance coverage under the CGEGIS have remained
unchanged for long. They have now been enhanced suitably. The following rates
of CGEGIS are recommended:
Present
|
Proposed
|
|||
Level
of Employee
|
Monthly
Deduction
(₹)
|
Insurance
Amount
(₹)
|
Monthly
Deduction
(₹)
|
Insurance
Amount
(₹)
|
10 and
above
|
120
|
1,20,000
|
5000
|
50,00,000
|
6 to 9
|
60
|
60,000
|
2500
|
25,00,000
|
1 to 5
|
30
|
30,000
|
1500
|
15,00,000
|
Medical Facilities:
Introduction of a Health
Insurance Scheme for Central Government employees and pensioners has
been recommended.
Meanwhile, for the benefit of
pensioners residing outside the CGHS areas, 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.
All postal pensioners
should be covered under CGHS. All postal dispensaries should be merged with
CGHS.
Pension: The Commission recommends a revised
pension formulation for civil employees including CAPF personnel as well as for
Defence personnel, who have retired before 01.01.2016. This formulation will
bring about paritybetween past pensioners and current retirees for the
same length of service in the pay scale at the time of retirement.
The past pensioners shall first
be fixed in the Pay Matrix being recommended by the Commission on the basis of
Pay Band and Grade Pay at which they retired, at the minimum of the
corresponding level in the pay matrix.
This amount shall be raised to
arrive at the notional pay of retirees, by adding number of increments he/she
had earned in that level while in service at the rate of 3 percent.
In the case of defence forces
personnel this amount will include Military Service Pay as admissible.
Fifty percent of the total
amount so arrived at shall be the new pension.
An alternative calculation will
be carried out, which will be a multiple of 2.57 times of the current basic
pension.
The pensioner will get the
higher of the two.
Gratuity: Enhancement in the ceiling of gratuity
from the existing ₹10 lakh to ₹20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises
by 50 percent.
Disability Pension for Armed
Forces: The Commission is recommending
reverting to a slab based system for disability element, instead of existing
percentile based disability pension regime.
Ex-gratia Lump sum Compensation
to Next of Kin: The Commission is
recommending the revision of rates of lump sum compensation for next of kin
(NOK) in case of death arising in various circumstances relating to performance
of duties, to be applied uniformly for the defence forces personnel and
civilians including CAPF personnel.
Martyr Status for CAPF
Personnel: The Commission is of the view that in
case of death in the line of duty, the force personnel of CAPFs should be
accorded martyr status, at par with the defence forces personnel.
New Pension System: The Commission received many grievances
relating to NPS. It has recommended a number of steps to improve the
functioning of NPS. It has also recommended establishment of a strong grievance
redressal mechanism.
Regulatory Bodies: The Commission has
recommended a consolidated pay package of ₹4,50,000
and ₹4,00,000 per month for Chairpersons and
Members respectively of select Regulatory bodies. In case of retired government
servants, their pension will not be deducted
from their consolidated pay. The consolidated pay package will be raised by 25
percent as and when Dearness Allowance goes up by 50 percent. For Members of
the remaining Regulatory bodies normal replacement pay has been recommended.
Performance Related Pay: The Commission has recommended
introduction of the Performance Related Pay (PRP) for all categories of Central
Government employees, based on quality Results Framework Documents, reformed
Annual Performance Appraisal Reports and some other broad Guidelines. The
Commission has also recommended that the PRP should subsume the existing Bonus
schemes.
There are few recommendations
of the Commission where there was no unanimity of view and these are as
follows:
The Edge: An edge is presently accordeded to
the Indian Administrative Service (IAS) and the Indian Foreign Service
(IFS) at three promotion stages from Senior Time Scale (STS), to the Junior
Administrative Grade (JAG) and the NFSG. is
recommended by the Chairman, to be extended to the Indian Police Service (IPS)
and Indian Forest Service (IFoS).
Shri Vivek Rae, Member is of
the view that financial edge is justified only for the IAS and IFS. Dr. Rathin
Roy, Member is of the view that the financial edge accorded to the IAS and IFS
should be removed.
Empanelment: The Chairman and Dr. Rathin Roy, Member,
recommend that All India Service officers and Central Services Group A officers
who have completed 17 years of service should be eligible for empanelment
under the Central Staffing Scheme and there should not be “two year edge”,
vis-à-vis the IAS. Shri Vivek Rae, Member, has not agreed with this view and
has recommended review of the Central Staffing Scheme guidelines.
Non Functional Upgradation for
Organised Group ‘A’ Services: The
Chairman is of the view that NFU availed by all the organised Group `A’
Services should be allowed to continue and be extended to all officers in the
CAPFs, Indian Coast Guard and the Defence forces. NFU should henceforth be based
on the respective residency periods in the preceding substantive grade. Shri
Vivek Rae, Member and Dr. Rathin Roy, Member, have favoured abolition of NFU at
SAG and HAG level.
Superannuation: Chairman and Dr. Rathin Roy, Member,
recommend the age of superannuation for all CAPF personnel should be 60 years
uniformly. Shri Vivek Rae, Member, has not agreed with this recommendation and
has endorsed the stand of the Ministry of Home Affairs.
The full report is available in
the website, http://7cpc.india.gov.in.
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