Cabinet approves Implementation of the recommendations of 7th Central Pay Commission

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7^th Central Pay Commission (CPC) on pay and pensionary benefits.   It will come into effect from 01.01.2016.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5^th CPC, and for 32 months at the time of implementation of 6^th CPC.  However, this time, 7^th CPC recommendations are being implemented within 6 months from the due date.

The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year.

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

Highlights:

1. The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.

2. All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.

3. The minimum pay has been increased from Rs.  7000 to 18000 p.m.  Starting salary of a newly recruited employee at lowest level will now be Rs.  18000 whereas for a freshly recruited Class I officer, it will be Rs.  56100.  This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.

4. For the purpose of revision of pay and pension, 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, the salary/pension of all government employees/pensioners will be raised by at least 14.29 % as on 01.01.2016.

5. Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

6. The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

7. Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :

• Gratuity ceiling enhanced from Rs.  10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
• A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
• Rates of Military Service Pay revised from Rs.  1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
• Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
• Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

8. The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs.  7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.

9. The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

10. The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.

11. The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances.  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.

12. The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.

13. Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.

14. As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.

7th Pay Commission is worst ever stated by Com Shiva Gopal Mishra General Secretary AIRF. Mishra Ji has declared that all Railway employees will go on indefinite strike on 11.07.2016. against the retrograde recommendations of Pay Commission. He has said all these while speaking on National Television NDTV.

Footage has been uploaded below:-

No.AIRF/160 Dated: June 29, 2016

The General Secretaries,
All Affiliated Unions,

Dear Comrades!

In continuation of our earlier letter of even number dated 29th June, 2016, you are advised to lodge strong protests on all the offices and establishments against the government as our demand for improvement in the report of the VII CPC – improvement in Minimum Wage and Multiplying Factor has not been considered by the Government of India.

With fraternal greetings!

No.AIRF/160                                                                                                   Dated: June 29, 2016

The General Secretaries,

All Affiliated Unions,

Dear Comrades!

Sub: Cabinet approval on the VII CPC report

As all of you are aware that the Union Cabinet has accepted the report of the VII CPC today.

It has been noticed that there is no improvement in Minimum Wage and Multiplying Factor as well, which was our hard pressed demand.  Instead, wages, as recommended by the VII CPC have been accepted as it is, which is highly disappointing.

Only two committees have been formed, one to take care of the allowances and another for National Pension Scheme, which will submit their reports within four months time.

It is quite unfortunate that, our demand for improvement in the report of the VII CPC has not been considered by the government.

Therefore, it would be quite appropriate that, we should go ahead with our preparations for “Indefinite Strike”, slated to be commended from 06:00 hrs. on 11^th July, 2016.

You are also advised to intensify the mass mobilization.

With fraternal greetings!

Here is why AIRF opposing 7th Pay Commission vehemently

As all of you are aware that the Union Cabinet has accepted the report of the VII CPC today.

It has been noticed that there is no improvement in Minimum Wage and Multiplying Factor as well, which was our hard pressed demand. Instead, wages, as recommended by the VII CPC have been accepted as it is, which is highly disappointing.

Only two committees have been formed, one to take care of the allowances and another for National Pension Scheme, which will submit their reports within four months time.

It is quite unfortunate that, our demand for improvement in the report of the VII CPC has not been considered by the government.

Therefore, it would be quite appropriate that, we should go ahead with our preparations for “Indefinite Strike”, slated to be commended from 06:00 hrs. on 11th July, 2016.

You are also advised to intensify the mass mobilization.

Com Shiva Gopal Mishra rightly justifying call of Strike on 11.07.2016 while participating in TV Debate on NDTV India. This debate was held on 30.06.2016 on the sidelines of AIRF’s preparation for Indefinite strike on 11.07.2016. Com. Shiva Gopal Mishra said that staff side is still ready to negotiate with Government provided Government must come out with decent proposal for central government employees. We have uploaded part – 1 of the debate below:-

Com Shiva Gopal Mishra rightly justifying call of Strike on 11.07.2016 while participating in TV Debate on NDTV India. This debate was held on 30.06.2016 on the sidelines of AIRF’s preparation for Indefinite strike on 11.07.2016. Com. Shiva Gopal Mishra said that staff side is still ready to negotiate with Government provided Government must come out with decent proposal for central government employees. We have uploaded part – 1 of the debate below:-

Latest Update – NJCA has issued a statement on 01.07.2016

Dear Comrades!

We are to inform you that the NJCA had a discussion with Government of India, i.e. 30.06.2016 over cetain demands contained in our Charter of Demands. In the meeting following Ministers were present:-
Shri Rajnath Singh, Hon’ble Home Minister
Shri Arun Jaitley, Hon’ble Finance Minsiter
Shri Suresh Prabhakar Prabhu, Hon’ble Railway Minister
Shri Manoj Sinha, Hon’ble MoSR

On behalf of the NJCA the following participated in the discussion:-

Shri Shiva Gopal Mishra, Convener NJCA
Shri M. Raghavaiah, Chairman NJCA
Shri K.K.N. Kutty, Member NJCA
Shri C.Srikumar, Member NJCA

The government has proposed to refer the issue of Minimum Wage and Fitment Formula to a committee for reconsideration.

The NJCA will await communication in this regard from the Government.

The NJCA will await communication in this regard from the Government.

The NJCA will again meet on 6th July at 11:00 hrs, in JCM office, 13-C, Ferozshah Road, New Delhi, for taking appropriate decision.

With Fraternal Greetings !

As all are aware that AIRF has given a call for indefinite strike on 11.07.2016. In the wake of Indefinite Strike call AIRF is putting its all out efforts to build momentum and mobilize its cadre for the strike on 11.07.2016. To take stock of the situation AIRF has called its standing committee meeting on 06.07.2016. Details of the meeting are given below:-

No.AIRF/32-A                                                                                                Dated: July 1, 2016
The General Secretaries,
All Affiliated Unions,
Dear Comrades

Sub: Standing Committee Meeting of AIRF

In the wake of “Indefinite Strike” call and the negotiations held at the highest level of the Government of India, an emergent Standing Committee meeting of AIRF will be held at 09:30 hrs. on 6th July, 2016 in AIRF Office, 4 State Entry Road, New Delhi.
You are requested to make it convenient to attend the same positively.

New Delhi:- With widespread resentment against the “meagre” pay hike announced in the 7th Pay Commission, as many as 33 lakh central government employees are threatening to go on strike from July 11.
“They have fixed the minimum wage at a meagre Rs 18,000 in the 7th Pay Commission. In the last Pay Commission, the basic pay was Rs 7,000. They multiplied it by 2.57 (fitment formula) and came to Rs 18,000. We are demanding 3.68 fitment formula,” Shivgopal Mishra, General Secretary, All India Railway Men Federation and Convenor of National Joint Council of Action (NJCA), told IANS.
NJCA is a front formed by six government staff unions, including Confederation of Central Government Employees (CCGE), All India Defence Employee Federation and National Coordination Committee of Pensioners Association, to oppose the hikes given by the 7th Pay Commission.
“As many as 33 lakh government employees, excluding the defence personnel, will go on strike if we do not get some kind of assurance from the government to reconsider the decision. The major contention is on the minimum wage, which we are demanding to be Rs 26,000,” KKN Kutty, President of CCGE and general secretary of national coordination committee of pensioners association, told IANS.
“We had a meeting with a group of ministers, including the Home Minister (Rajnath Singh), Finance Minister (Arun Jaitley) and Railway Minister (Suresh Prabhu) on the evening of June 30. They said it will be considered and will be referred to some committee,” said Mishra.
“We are waiting to hear back on this from the government by July 4 evening or July 5. In our meeting, it was only a verbal commitment. If the government gives us specific details like which committee will review, etc. then we will decide further course of action about strike. We have a meeting on July 6 to decide on the strike,” Mishra said. He further said that “ The ball is in government’s court and it is totally upto government to bring some concrete formulas, otherwise strike is inevitable”. Railway employees are agitated and anguished no one can stop them from Indefinite strike untill and unless they are given some relief, said Mishra.
“We had met the government on June 9, and suggested various improvements in the 7th Pay Commission’s recommendations. But the government has not given any heed to whatever improvements we had proposed. They have given same hike as suggested by 7th Pay Commission,” Mishra, told IANS.
Shiva Gopal Mishra contends that the prices of essential commodities considered by the Seventh Pay Commission itself were faulty, which has resulted in the meagre rise.
“Price considered of essential commodities by pay commission is not right. They have taken dal price at Rs 97. Where do you get dal for Rs 97?” he said.
The NJCA is also demanding for the withdrawal of the new national pension scheme (NPS), which came into effect from October 2004.
“A lady employee, who got the job after her husband’s death, retired after 12 years of service. She comes under the new NPS scheme as she joined service after 2004. She gets Rs 960 pension per month,” Mishra said.
However while the fate of the strike is still unknown, a central government junior staffer on the condition of anonymity told IANS: “I think strike is the only way out. The only thing that can make government on its knees is stike.”
The Bharatiya Mazdoor Sangh (BMS), affiliated to the Rashtriya Swayamsevak Sangh, the parent body of the ruling Bharatiya Janata Party, has also expressed its “dissatisfaction” at the 7th Pay Commission’s recommendations.
“A huge gap has been created between the minimum and the maximum wage after the government approved the Seventh Pay Commission Report’s recommendation,” BMS general secretary Virjesh Upadhyay told IANS earlier.
However, BMS is not expected to go on strike as it is not a part of the NJCA.
The Union Cabinet has decided to constitute three separate committees, including one to look into the anomalies likely to arise out of enforcement of the commission’s report.
“The two separate committees constituted includes for suggesting measures for streamlining the implementation of National Pension System (NPS) and to look into anomalies likely to arise out of implementation of the Commission’s Report,” said an official statement earlier.
The cabinet approved the Seventh Pay Commission’s recommendations for central government employees on July 29, which will impact some 47 lakh central government employees and 53 lakh pensioners.

We are preparing for strike, it’s up to Government now – Com. Shiva Gopal Mishra

After our Massive Protest on 30th June all over Southern Railway, the Group of Ministers headed by Hon’ble Home Minister Shri.Rajnath Singh had a meeting with our beloved General Secretary / AIRF and Convenor of NJCA Shri.S.G.Mishra, who is also the Secretary/JCM, Staff side & others, in that meeting the GOM has agreed to consider our Major Demands on enhancement of Minimum Pay of Rs.18,000/- upward revision of Fitment Formula, revision of Pay Matrix, besides Committees on New Pension Scheme and on Allowances and Anomalies in respect of all categories in Railways and in other Central Government Organisations……

On Prime Time, Ravish Kumar/NDTV reviews the highlights and lowlights of the 7th pay panel hike announced by the Centre. We ask whether despite the numbers being portrayed by the government, are employees at lower levels not given adequate hike as per the present day needs. Is the pay panel hike really ‘historic’ as being said by the government? This report completely justify the stand taken by AIRF and its affiliates to go on indefinite strike if Government doesn’t come out with relief. Complete video has been uploaded below:-

Amritsar Workshop Branch of NRMU organized Bike Rally from Amritsar Workshop to Amritsar Railway Station on 05.07.2016 against retrograde recommendations of 7th Pay Commission. Hundreds of Workers of Northern Railway Mechanical workshop were present at the Rally. After reaching the Railway Station workers carried out a March on Railway Station Platform 1 and did sloganeering against 7th Pay Commission. At Railway Station Com. Satinder Singh Div. Prez/Workshop Division, Com. Krishan Kumar/Br. Secy and Com. Rajeev Kumar/Br. President addressed the meeting. After meeting effigy of Finance Minister was burnt at Railway Station.

F.N0.12/10/20 16-JCA2
Government of India
Ministry of Personnel Public Grievances and Pensions
Department of Personnel and Training

North Block, New Delhi
Dated the 05 July, 2016

OFFICE MEMORANDUM

Sub: Change of date of holiday on account of Id-ul-Fitr during 2016 for all Central Government administrative offices located at Delhi / New Delhi.

As per list of holidays circulated vide this Ministry’s 0.M.No.12 / 7 / 2015-JCA-2 dated the 11th June, 2015, the holiday on account of Id-ul-Fitr falls on Wednesday the 6th July, 2016. It has been brought to notice of this Ministry that in Delhi Id-ul-Fitr will be celebrated on 7th July, 2016. Accordingly, it has been decided to shift the Id-ul-Fitr
holiday to 7th July, 2016 in place of 6th July, 2016 as notified earlier, for all Central Government administrative offices at Delhi / New Delhi.

2. For Offices outside Delhi / New Delhi the Employees Coordination Committees or Head of Offices (Where Such Committees are not functioning) can decide the date depending upon the decision of the  the concerned State Government.

PDF file has been reproduced underneath:-

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The communication received from Hon’ble Finance Minister, Government of India, is being enclosed herewith for your ready reference.
The meeting of the NJCA was held in JCM Office, 13-C, Ferozshah Road, New Delhi, today; the outcome of which is
being enclosed for your information. All of you are informed accordingly.

There should not be any doubt that salary for the month of July onward will be based on 7^th CPC recommendations approved by the government on 29^th June, 2016 with only change that, all the allowances, as admissible at present, will continue till report of various committees set up for different purposes are finalized. Gazette Notification for the same is expected today or early next week…….

No.AIRF/405(VII CPC)                                Dated: July 8, 2016

The General Secretaries,

All Affiliated Unions,

Dear Comrades,

Unwanted queries are being pouring in this office; regarding payment of 7^th CPC based salaries from current month or otherwise.

There should not be any doubt that salary for the month of July onward will be based on 7^th CPC recommendations approved by the government on 29^th June, 2016 with only change that, all the allowances, as admissible at present, will continue till report of various committees set up for different purposes are finalized. Gazette Notification for the same is expected today or early next week.

Please disseminate this information down the line, so that direct queries from AIRF Office should stop.

We welcome one step taken forward by Government – Com. Shiva Gopal Mishra

Com. Shiva Gopal Mishra has welcomed the formation of High Level Committee formed by Ministry of Finance. While speaking on India 24×7 on 07.07.2016, Com. Shiva Gopal Mishra Convener/NJCA assured 33 Lakhs central government employees that NJCA will put forth its demands to Government very strongly and hopes positive outcome coming out of negotiations. Com. Shiva Gopal Mishra said that Minimum wages recommended by 7th Pay Commission are not acceptable to us at all & we hope that High Level Committee would do the needful in this regard in stipulated time frame i.e. four months.
Please have a look on complete video:-

A meeting of the Federations with Board has been fixed for 21st July, 2016 at 11:00 hours in the committee Room. Rail Bhavan to discuss the pending issues.

President and General Secretary of the Federations may kindly make it convenient to attend the meeting.

RBE No. 66/2016

Government of India
Ministry of Railways
(Railway Board)

No.2016/E(LL)/HPC/6                                                                                               New Delhi
Dt. 16.06.2016
The General Manager(P)
All Indian Railways & PUs

Sub:- Recommendations of the High Power Committee to review the duty hours of running and other safety related categories of staff – Job Analysis

The High Power Committee, constituted to review the duty hours of running and other safety related categories of staff, had recommended to lay down a time schedule for carrying out the job analysis and taking decision thereupon.
The above recommendation has been duly considered by the Board and it was decided that the job analysis may be carried out and concluded in time bound manner as per existing provision.

Railways may take appropriate action accordingly.

This issues with the concurrence of Finance Directorate of the Ministry of Railways.

Please acknowledge the receipt.

(D.V. Rao)
Direcotr Estt.(LL)
Railway Board

RBE No. 67/2016

Government of India
Ministry of Railways
(Railway Board)

No.2016/E(LL)/HPC/6                                                                                New Delhi Dt. 16.06.2016
The General Manager(P)
All Indian Railways & PUs

Sub:- Recommendations of the High Power Committee to review the duty hours of running and other safety related categories of staff – Rosters of Intensive category of staff.

The High Power Committee, constituted to review the duty hours of running and other safety related categories of staff, had recommended on roster of Intensive category of staff as under:

“The rosters for Intensive category staff should be made in such a way that they don’t work on all seven days in a week and also get a weekly rest of 40 hours minimum. Zonal Railways may be asked by the Ministry of Railways to modify their rosters for the “Intensive” category staff accordingly. A copy of the modified roster received by the committee from North Western Railway may be circulated to them along with this letter for guidance (5.4)”.

The above recommendation has been duly considered by the Board and in modification of previous instructions on the subject, the following decision has been taken:
“Rosters may be revised on the basis of model roster of NWR to provide better quality of periodical rest to affected categories of staff”.
A copy of the model roster from NWR recommended by the Committee is enclosed. Railways may consider the feasibility of adopting the above roster without creating additional posts so that they get proper rest in week.
The existing provisions of the Railways Act, 1989 and Railway Servants (Hours of Work & Period of Rest) Rules, 2005, will continue to be applicable.
This issues with the concurrence of Finance Directorate of the Ministry of Railways.

(D.V. Rao)
Director Estt(LL)
Railway Board

PDF file has been reproduced underneath:-

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