7 pay commission – all you need to know
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7 pay commission – complete detail
The Government of India has initiated the process to constitute the 7th Central Pay Commission along with finalization of its Terms of Reference, the composition and the possible timeframe for submission of its Report. On September 25, 2013, then Finance Minister P Chidambaram announced that Prime Minister Manmohan Singh has approved the constitution of the 7th Pay Commission.
Its recommendations are likely to be implemented with effect from January 1, 2016. Justice A.K Mathur will be heading the Seventh Pay Commission, announcement of which was done on 4 February 2014. On 29 June 2016, Government accepted the recommendation of 7th Pay Commission Report with a meager increase in salary of 14% after six months of intense evaluation and successive discussions. The Finance Minister of India claimed it a historical increase of salaries due to little knowledge of Sixth Pay Commission.
7thCPC Pension Calculation: Option-1 recommended by 7th CPC is rejected
Meeting of the Standing Committee of National Council (JCM) held on 03.05.2017. Only Action Taken Report (progress report) on old items discussed in the Standing Committee meeting held on 25.10.2016 was discussed from 3 to 7 PM.
The protest of the staff side regarding the abnormal delay in implementation of revised allowances from 01.01.2016, increase in minimum pay and fitment formula, Option -1 parity of Pensioners, revision of pension and grant of dearness relief to autonomous body pensioners etc was conveyed to Secretary, Department of Personnel who chaired the meeting. The proposed move to close down DGS&D was also raised.
On behalf of Confederation Coms: K.K.N.Kutty, M.Krishnan, and M.S.Raja attended. Cabinet has approved the parity in pension recommended by the Pension Committee constituted by Govt w.e.f.01.01.2016. (whether it is 5th CPC recommended parity can be confirmed only after seeing the orders).
7th CPC Recommendations on Pay and Pensionary Benefit
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation. Earlier, in June 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of Rs 84,933 crore for 2016-17 (including arrears for 2 months of 2015-16).
The benefit of the proposed modifications will be available with effect from 1st January 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be Rs.1,76,071 crore. Some of the important decisions of the Cabinet are mentioned below:
Revision of pension of pre – 2016 pensioners and family pensioners
The Cabinet approved modifications in the recommendations of the 7th CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet. The modified formulation of pension revision approved by the Cabinet will entail an additional benefit to the pensioners and an additional expenditure of approximately Rs.5031 crore for 2016-17 over and above the expenditure already incurred in the revision of pension as per the second formulation based on fitment factor. It will benefit over 55 lakh pre-2016 civil and defense pensioners and family pensioners.
While approving the implementation of the 7th CPC recommendations on 29th June 2016, the Cabinet had approved the changed method of pension revision recommended by the 7th CPC for pre-2016 pensioners, comprising of two alternative formulations, subject to the feasibility of the first formulation which was to be examined by the Committee.
In terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as per the second formulation multiplying existing pension by a fitment factor of 2.57, though the pensioners were to be given the option of choosing the more beneficial of the two formulations as per the 7th CPC recommendations.
In order to provide the more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested a revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner. The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases. The Committee reached its findings based on an analysis of hundreds of live pension cases. The modified formulation will be beneficial to more pensioners than the first formulation recommended by the 7th CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies.