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.”