An Organisation for the welfare of postal employees

Friday, July 1, 2016

7th CPC Recommendations


7th CPC Recommendation on CGEGIS is not accepted by Govt and the old scheme and rates continues:The 7th Pay Commission has recommended the following rates for Central government Employees Group Insurance Scheme (CGEGIS) . The subscription amount has been increased considerably to increase the Insurance amount .

Level of Employee     Monthly Deduction ()     Insurance Amount ()
10 and above                           5000                             50,00,000
6 to 9                                           2500                              25,00,000
1 to 5                                          1500                               15,00,000

This has been objected by NCJCM in its memorandum. The demanded to reduce the monthly deduction as it is much higher than the Premium rates available for Term life Insurance in Open Market. The Central Government accepted this demand and rejected this recommendation and asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

” 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.

2)Cabinet accepts both two options for fixation of 7th CPC Revised Pension
7th CPC Recommended following Two options for fixation of Revised Pension:

1. Pay Scale on Retirement and Number of Increment Earned in the scale of Retiring Grade will be taken for fixation of PensionIn this method Pension will be fixed in the Pay Matrix on the basis of the Pay Band and Grade Pay at which they retired

2. Using Multiplication Factor 2.57Existing Basic Pension to be multiplied by 2.57

When the NJCA met the Cabinet Secretary, they observed that Govt is not going to accept second option due to non-availability of Records to verify their Pay Level at the retiring stage. Objections were raised by Pensioners Association to this move and they requested the government to retain both two options to avoid disparity between Pre 2016 and Post 2016 Pensioners.The Central government in principle accepted the two options recommended for fixation of Revised Pension. But to address the issues anticipated when implementation in process, govt decided to constitute a committee to examine the feasibility of using First Option for fixation of Pension. It said, if found feasible, it will be implemented. The Committee has been given four months’ time to submit its report.The govt decision on Pension related issues is given below“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.”

3)Cabinet decided to retain LTC advance and Medical Advance in 7th Pay Commission:7th Pay commission in its report, recommended that all the interest free advances should be abolishedWe have already raised concerns about abolishing the Advances for Medical Treatment and LTC

Since these advances are reimbursable in nature, the government has now considered to restore four advances out of 12 Interest free advances which 7th CPC recommended to abolish.After Cabinet Approval Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained.

4)The Central Government decision on the Advances is given below:“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”Percentage of HRA in 7th pay commission after cabinet approvalThe Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalising the percentage based allowances. The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent

5)The cabinet committee reviewed the recommendations on Allowances and they are not able to give a decision over the Allowances. Hence the Union Cabinet  decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. And it is said that the Committee will complete its work in a time bound manner and submit its reports within a period of 4 months.

In the press release issued by government said the following” 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.”The above press release  concluded with a statement of ” Till a final decision, all existing Allowances will continue to be paid at the existing rates”Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively. Whether these existing rates of HRA will be paid based on revised pay or pre revised pay..? 
It needs to be clarified when implementation of 7th pay commission is in process.”




7th pay commission worst pay hike in country’s history, says Congress



NJCA DECIDED TO GO ON STRIKE


THE NJCA MET IN THE JCM STAFF SIDE OFFICE AND DISCUSSED THE STRIKE ISSUE,FNPO IS REPRESENTED BY THE, PRESIDENT FNPO, SG FNPO & DEPUTY SGFNPO NJCA UNANIMOUSLY DECIDED TO  GO ON INDEFINITE STRIKE FROM 11TH JULY 2016.
THE PJCA CONSISTING OF NFPE& FNPO MET SEPARATELY AND ENDORCED THE DECISION OF NJCA.

TOMORROW THERE WILL BE PRESS CONFERENCE FROM NJCA.WAIT FOR THE FURTHER DETAILS

Thursday, June 30, 2016

NJCA MEETING HELD TODAY UNANIMOUSLY DECIDED TO GO ON INDEFINITE STRIKE FROM 6AM ON 11th JULY 2016.

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.

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 7th Central Pay Commission (CPC) on pay and pensionary benefits.   It will come into effect from 01.01.2016.I

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 beRs.  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.


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 CPC – GOVERNMENT REJECTED ALL THE MODIFICATIONS SOUGHT BY THE NJCA NO INCREASE IN MINIMUM PAY AND FITMENT FORMULA HOLD PROTEST DEMONSTRATIONS & RALLY IN FRONT OF ALL OFFICES NJCA will meet at 04:00 PM on 30th June 2016 to decide future course of action. Continue in full swing mobilization for indefinite strike from 11th July 2016.S.G.FNPO.