Monday, June 27, 2016

15-20 per cent hike likely in Seventh Pay Commission, decision on Wednesday

Highly placed sources have told India Today that Prime Minister Narendra Modi has asked the Finance Ministry to place the recommendations of the Cabinet Secretary's report on the seventh Pay Commission in the next Cabinet meeting on June 29.

In what promises to be a big bonanza for central government employees, a hike of 15-20 per cent in salaries is expected to be proposed under the Seventh Pay Commission.

Highly placed sources have told India Today that Prime Minister Narendra Modi today asked the Finance Ministry to place the recommendations of the Cabinet Secretary's report on the seventh Pay Commission in the next Cabinet meeting on June 29.

Sources say that government employees are likely to get a pay hike of between 15-20 per cent over their current compensation with sources saying the recommendations of the pay commission are likely to be accepted by the Modi government.

In January, the government had set up a high-powered panel headed by Cabinet Secretary PK Sinha to process the recommendations of the Seventh Pay Commission.

Over 98.4 lakh government employees will be impacted by the Seventh Pay Commission recommendations. This figure includes 52 lakh pensioners

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Govt to take up pay panel proposals, hike for central employees in offing

Central government employees can look forward to fatter salary cheques as the Union cabinet is likely to take up the 7th Pay Commission recommendations on Wednesday.

The commission has recommended an average 23.55% increase in their salary, allowances and pension, a move that will benefit 4.8 million staffers and 5.5 million pensioners.

In January, the government had set up an empowered committee of secretaries headed by cabinet secretary PK Sinha to examine the panel’s suggestions. A secretariat has also been set up within the finance ministry to oversee the panel’s recommendations.

The cabinet is expected to discuss on Wednesday the Sinha committee’s report on implementation of the pay panel’s recommendations.

The salary hikes will be effective from January 1, 2016.

More cash in hand is likely to result in higher consumption by the government’s massive employee base, which accounts for a large segment of the Indian middle-class.

More demand could boost the economy through higher spending on assets such as cars and housing.
The government usually accepts the broad proposals for pay revision — due every 10 years and state governments usually respond with their own hikes.

The Centre’s total salary and allowances bill for 2016-17 has been pegged at Rs 1.84 lakh crore, which is Rs 65,687 crore or 55% higher than last year’s Rs 1.18 lakh crore. The higher wage bill for this year partly factors in the anticipated increase in employee remuneration.

The pay commission’s recommendations say a fresh IAS recruit will get a basic salary of Rs 56,000 a month against Rs 23,000 currently, while a sepoy in the Indian Army will earn Rs 21,700 a month from Rs 8,460 at present. In addition, employees are paid dearness allowance and house rent among many other allowances.

If accepted, the new proposals will set Rs 18,000 as the minimum pay of an employee on the central government’s rolls. At present, the minimum salary is Rs 7,000.

The total emoluments of a general helper — the lowest-ranked employee — amount to Rs 22,579, more than double that of his counterpart in the private sector, a study commissioned by the panel found.

The commission has proposed a change in the salary structure by doing away with the system of pay bands and grade pay and recommended “pay matrix”. It has also called for scrapping overtime allowance and interest-free loans to buy motor vehicles.

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7th Pay Commission: Cabinet to decide final payout for central government employees on June 29

New Delhi: The much awaited seventh pay commission is going to enter the last phase of implementation soon.

The Union Cabinet is expected to take up the recommendations of the 7th Pay Commission on June 29.

As per reports, Prime Minister has directed Finance Ministry to implement the Pay Commission for government employees, and place the Empowered Group of Secretaries report on the central government employees' salary and allowances hike in the next Cabinet meeting on Wednesday, June 29.

It is expected that Empowered Group of Secretaries panel has raised the fitment factor to around 2.7, up from 2.57 as recommended by the 7th Pay Commission.

 The entry level salary is expected to rise to Rs 23,000, up from Rs 18,000 as recommended by the AK Mathur panel. Implementation of the Pay Commission report is going to cost the government Rs 1.02 lakh crore.

The Commission will revise the pay of nearly 47 lakh central government employees and 52 lakh pensioners, which will be effective from January 1, 2016.

With the threat of strike by central government employees looming large, the Cabinet is expected to take a prompt decision on the recommendations resulting in notification.

The salary hikes recommended are expected to apply from July.

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Cabinet okays DA sop for retiring employees

The Jammu and Kashmir Government today approved that a retiring state employee will draw salary with the same rate of dearness allowance (DA) as applicable to Central government employees on that date.

The decision was taken during a Cabinet meeting here which was headed by Chief Minister Mehbooba Mufti.

“The government approved that the salary for the month in which a state government employee reaches the age of superannuation, shall be drawn at such rate of DA as would be applicable to a Central government employee on that date,” an official statement issued here said.

“The decision was taken as in the last many years, the DA announced for Central government employees has also been released in favour of state government employees, although belated at times.

In respect of employees on the verge of retirement, the belated release of DA only added to avoidable difficulties, particularly the need to furnish the pension case once again to Accounts General’s office and state government for authorisation of residual gratuity,” the spokesperson said.

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Saturday, June 25, 2016

Seventh Pay Commission: Brexit fallout may force Modi govt to delay ‘salary increment

Modi government may delay most awaited Seventh Pay Commission as a result of Brexit fallouts. Reportedly, implementation of the 7th CPC could be delayed for 2-3 months in the wake of volatility in the markets following after Britain's decision to pull out the European Union.

As per media reports, it will take minimum 2-3 months for markets to gain its stability back. At a time when fiscal health is already under stress, government can't put more burdens on exchequer.

Around Rs 1, 00,000 cr is needed to implement salary increment and arrears under Seventh Pay Commission scheme.

As per Zee News, "In order to stabilize overall outflows from the domestic equity markets, government needs to adopt wait-and-watch policy for another quarter before thinking of implementing the payout as any haste can further increase volatility in the market".

Earlier reports said that Government could implement Seventh Pay Commission from August 1. It was said that Central government Employees would get increment in their July salary and six months arrears in the month of October.

On Friday, Britain voted to quit the European Union after 43 years of membership, throwing the world markets in a tailspin and leaving European leaders worried over how to stem a rising Eurosceptic tide.

The vote rattled Indian financial markets too, shaving over 1,000 points, or 4 per cent, off a key equities index, while pulling the rupee just below the 68 mark to the dollar.

Both Finance Minister Arun Jaitley and Reserve Bank of India Governor Raghuram Rajan sought to calm the markets and said there was no cause for panic as India's economic fundamentals remained strong and along with other macro indicators.

 "We are well prepared to deal with the short and medium term Brexit consequence -- strongly committed to our macro-economic framework with focus on stability," Jaitley tweeted from Beijing.

Rajan said investors need not panic over the rupee. "We are comfortable on foreign exchange reserves. We can use it when necessary."

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Friday, June 24, 2016

7th Pay Commission: Govt employees to get full 6 months arrears in October

New Delhi: The central government employees and pensioners are likely to get their 6 months of arrears in October.

As per media report, increased salary of July will be credited to the 47 lakh central government employees and 52 lakh pensioners' accounts on August 1, 2016. But the arrears of last 6 months will be credited in one installment in October.

As per sources, the Empowered Committee of Secretaries headed by the Cabinet Secretary Pradeep Kumar Sinha has recommended a 30 percent increase in minimum and maximum basic pay structures along with doubling of existing rates of allowances and advances.

The 7th Pay Commission had suggested a maximum basic pay of Rs 2,50,000 and a minimum of Rs 18,000. A 30 percent increase would translate into maximum salary of Rs 3,25,000 and minimum at Rs 23,400, respectively.

The Empowered Committee of Secretaries is functioning as a Screening Committee to process the recommendations with regard to all relevant factors of the Commission in an expeditious detailed and holistic fashion.

Government had earlier decided to set up a high-powered panel headed by Cabinet Secretary P K Sinha in January this year to process the recommendations of the 7th Pay Commission.

Media reports further state that after getting final nod from the Empowered Committee of Secretaries, Finance Ministry will take only a few days to implement the higher pay package for central government employees.

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Thursday, June 23, 2016

7th cpc latest news from confederation

                  The empowered committee of Secretaries headed by the Cabinet Secretary had discussion from past five  months on the charter of demands raised by the staff side,  The finance ministry is working out the financial implications arising out of the improved  recommendations of the 7th CPC especially on the minimum wage and fitment formula being improved, granting two  increment on promotion and having annual increment on 1st Jan and 1st July instead of just on 1st July.  This will benefit a lot of persons on promotion. The other aspect is considering grant of advances, which the 7th CPC has recommended for abolition.

        The formal announcement by the of the 7th CPC acceptance is likely to be made by the Government just before the 11th July strike by the CG employees indicating the actual minimum wage and fitment formula.

     The cabinet Secretary will present the view of the empowered committee of Secretaries before the Union Cabinet meeting based upon the principle adopted in actual calculation of the minimum wage and fitment formula. The 7th CPC had adopted the Dr Aykroyd formula   minimum wage is calculated on the basis of the 15th ILC norms. But erred in many aspects for example the average of   prices of last 12 months was taken, The housing weight age , education weight age etc  . The prices of essential items are rising from past many years, even in last six months the retail inflation is rising above 5.4%.

 Secondly the prices quoted by the  GOVERNMENT OF INDIA MINISTRY OF LABOUR & EMPLOYMENT LABOUR BUREAU CLEREMONV, SHIMLAHttp://Labourbureaunew.Gov.In/ ,  the Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi & the retail market prices are varying .

If we calculate the minimum wage based upon the  LABOUR & EMPLOYMENT LABOUR BUREAU taking prices as on 1st July 2015 the minimum wage works out to Rs 21,000 / and fitment formula works to 3.00. This will result in 34% wage hike without allowances.

If we calculate the minimum wage based upon the  Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi  taking prices as on 1st July 2015 the minimum wage works out to Rs 23,000 / and fitment formula works to 3.30. This will result in 50% wage hike without allowances.

If we calculate the minimum wage based upon the retail market   taking prices as on 1st July 2015 the minimum wage works out to Rs 28,000 / and fitment formula works to 4.00. This will result in 70% wage hike without allowances.

          The most important demand is that of the CG employees is the minimum wage and fitment formula.

 The Staff side had demand of minimum wage of Rs 26000/- & fitment formula of 3.71. Against this the 7th CPC had recommended minimum wage of Rs 18000/- & fitment formula of 2.57. The 7th CPC recommendations has provided only at 14% wage hike at Group “C” level it is only ranging from Rs 2240/- to  Rs  3500/- increase per month, and at Group “B” level ranging from Rs 4000/- to   Rs 6500/- increase per month. After deductions & income tax the net increase will be just from Rs 500/- to Rs 3000/- only.

 This increase is lowest by any pay commission, hence vast changes are required as the prices of essential commodities have gone up and also the inflation rate has gone up.  

Comrades it is the time to struggle, we should educate the members and prepare for struggle, so that we should get at least 50 % wage hike without allowances, as allowances are not taken into pension benefit.

Only struggle will get us benefit. Please don’t believe on rumours. Now it is now or never.

Comradely yours

General Secretary


Wednesday, June 22, 2016

Here's how the 7th Pay Commission can affect your pay, most likely from August 2016!

The 7th pay commission has everything to make a central government employee happy and satisfied! The Commission is most likely to decide on a 30% hike on the basic pay. The minimum basic monthly salary recommended by the Commission was Rs 18000 and a 30% hike will make it to Rs 23500!

The 7th Pay Commission headed by Justice AK Mathur (Vivek Rae, retired IAS Officer; Rathin Roy, economist and Meena Agarwal, Secretary of the Commission are some of the other members of the Commission) had submitted its report to the Finance Minister earlier this year in the month of January. The Commission had suggested several recommendations like 23.55% increase in the pay and allowance, 24% hike for pensioners and OROP (One Rank One Pension) for central government employees and paramilitary personnel.

The exact decision of the Commission is impending. The Empowered Committee of Secretaries (13 member secretary level Committee to review the recommendation of the Pay Commission) is likely to make comparisons between the recommendations of the 7th pay commission and the comments from various stakeholders on the 7th Pay Commission. An Implementation Cell has been created in the Finance Ministry to work as the Secretariat of the Empowered Committee of Secretaries.

A Layman’s Guide to Pay Commission

Pay Commission has been set up by the Government of India, since Independence. The Commission is involved in giving recommendations regarding the salary structure of the Central government employees working in the civil and military divisions. Till date seven pay commissions have been set up for the same purpose.

The announcement for the 7th pay Commission was made on 04 February 2014. While Justice AK Mathur was the head of the Commission, other notable members included Vivek Rae, Dr. Rathin Roy and Meena Agarwal.

What will be the lowest and highest basic salary under 7th Pay Commission?

Under 7th Pay Commission the lowest and highest basic salary are Rs 18000 and Rs 250000, respectively. However the 30% hike will round the figures to Rs 23500 and Rs 325000 respectively. The figures reveal the drastic difference between the salary structure of the 7th Pay Commission with that of the 6th Pay Commission.

When is it likely to be implemented?

As mentioned above, the decision regarding implementation of the 30% hike is impending. However as per the latest reports it is likely to be implemented in August 2016.

What are the other salient features of the 7th Pay Commission?

Annual increment has been hiked to 3%.

   HRA has been increased to 27%, 18% and 9%, if the DA crosses 50%; and further revision to 30%, 20% and 10%, when DA crosses 100%.

    Introduction of Health Insurance Scheme replacing the Central Government Health Scheme (CGHS).

    Introduction of OROP pension scheme for defence personnel

    Child Care Leave to be granted at 100% of salary for first 365 days and at 80% for next 365 days. CCL to be granted for single male parents.

Read more about the features of 7th pay commission here

The 7th Pay Commission is going to benefit near about 45 lakh Central government employees and almost 52 lakh pensioners.

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Tuesday, June 21, 2016


Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
E Mail :
NO.NC/JCM/2016                                                                      Dated: June 17, 2016

Respected Sir/Madam,

Sub: Non-settlement of genuine demands of the Central Government Employees

            More than 32 lakh Central Government Employees working in various ministries of the Government of India. including Railways, Postal, Defence (Ordinance Factory and other Civilian Employees), Central Secretariat, Income Tax, Audit & Accounts and other employees of the government departments are aggrieved since long on non-settlement of their various demands.

            The report Of the Vll CPC has further made them aggrieved because of the retrograde recommendations, including non-scientific calculation of Minimum Wage and Fitment Formula. The issue of National Pension Scheme (NPS) had been very heartburning for more than 1.1 million young Central Government Employees who have been deprived from the Defined Pension/Family Pension and we are agitating this issue with the Central Government since its inception.

            Under the above compelled circumstances, the National Joint Council of Action has taken a decision to go on “‘Indefinite Strike” from 06:00 a.m. on 11th July. 2016

The Central Government Employees of this country have always stood for the development and good governance of the country. but do feel de-motivated because of the inaction on their pending demands. we do have written to Hon’ble Prime Minister of India vide letter No.NC/JCW2016/CS/PM dated 14.06.2016 (copy enclosed for ready reference) the request that. the government should immediately come forward for negotiated settlement with the NC/JCM on the demands of the Central Government Employees to avoid unnecessary confrontation.

We earnestly hope that. you will kindly lay your hands and support us in our struggle as well as put pressure on the Government of India far resolution of our genuine demands at an earliest

Yours faithfully,

(Shiva Gopal Mishra)
Secretary, Staff Side
National Council(JCM)


Implementation of 7th Central Pay Commission-NJCA expecting Prime Minister's Intervention and Support

Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001


Dated: 14.06.2016

Hon’ble Prime Minister of India,
152, South Block,
Raisina Hill,
New Delhi-110011

Respected Sir,

Sub: Non-settlement of our demands – Decision to go on “Indefinite Strike” commencing from 11.07.2016 – Request for your intervention and support

I write this on behalf of the apex level body of all the Central Government Employees Organizations who are participating in the Negotiating Forum; called the Joint Consultative Machinery. The JCM as a Negotiating Forum was conceived and implemented in 1966 after the prolonged discussions with the Staff Associations and the Federations in the Central Services in the wake of first industrial action in 1960. The idea of setting up the JCM was in realization of the absence of a platform to discuss, deliberate and settle the demands/issues/grievances/problems of the Civil Servants. Up to 1995-96 the JCM, which has a three level negotiating platform was functioning well, meetings were regular. However, after the promulgation of the new recognition Rules in 1993, the meetings at the Ministry level became few and far between and at the national level, the deterioration stepped in a little latter. The National Council, which was to meet thrice in a year did not meet even once in a year. The last meeting of the National Council was held on 15.05.2010 The organizations participating in the JCM were demanding the meeting to be held, but the pleas were ignored by the successive Cabinet Secretaries. The Charter of Demands (copy enclosed), in pursuance of which the strike is decided to be organized, has arisen due to long neglect of the grievances of the employees/workers.

When the 7th CPC was set up in February, 2014, no announcement for Interim Relief or DA Merger was made by the then government, which had all along been the practice whenever the government had set-up the Pay Commissions earlier. We fully co-operated with the Commission, submitted a memorandum detailing the issues and explained the reasoning behind each demand. The 7th CPC submitted report on 19.11.2015 to the government. In our communication dated 10.12.2015 (copy enclosed), we sought improvement/amendment over the recommendations of the 7th CPC and explained our demands both in writing and orally before the Empowering Committee. Most of the meetings were monologues except perhaps the last one. What we have understood, is that, the Empowering Committee might not come forward to make any major changes. A fruitful meeting is supposed to be a dialogue where both parties at the negotiating table exchange their understanding, views and difficulties and reach a mutually acceptable position. In 1998, when the then Cabinet Secretary decided not to have such a dialogue with the Staff Side and unalterably issued the Government Notification on the 5th CPC recommendations, the then government did set up a committee of Group of Ministers. The GoM held discussions on all issues and averted the strike action. The 1998 situation establishes, without an iota of doubt, that, the Staff Side has always taken reasonable stand on all the issues and paved way for settlement.

The one and only recommendation made by the 7th CPC was to provide some relief to the past old pensioners. The Department of Pension & Pensioners’ Welfare has unfortunately recommended to the Cabinet Secretary that, even that recommendation must be rejected on the specious plea that the requisite relevant records might not be available.

These developments have caused anguish, anxiety and anger amongst the workers. It is now more than six months that the Commission submitted its report. If the government comes forward to hold a meaningful discussion with the leaders of the NJCA, a mutually acceptable settlement can be brought about and the impending strike, slated to commence from 11.07.2016, can ultimately be avoided.

We seek your co-operation, supports and intervention in the matter

Yours faithfully,

(Shiva Gopal Mishra)
Secretary(Staff Side),

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