7th CPC Pay Matrix Anomaly - Lesser Pay in Higher Level of Pay Matrix: Agenda Items for NAC Meeting

September 3, 2017, 12:09 pm

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7th CPC Pay Matrix Anomaly - Lesser Pay in Higher Level of Pay Matrix: Agenda Items for NAC Meeting by NC JCM (Staff Side)

Item No 8 

Lesser Pay in higher Level of Pay Matrix

The construction of Pay Matrix has opened up very many anomalies. From the illustration given hereunder, it could be seen that a person in higher Pay level but drawing same basic pay of person in the lower pay level gets lesser pay. It could also be seen that certain stage in PB-2 GP 5400 has more benefit than a similarly placed employee in PB3 GP 5400. (see the table). The Pay Matrix therefore has to be changed to remove the anomaly.

The Basic Pay from the stage 3 of Level 9 of the Pay Matrix recommended by 7th Central Pay Commission shall be higher than of stage 1 of level 10 for a same amount of pre revised basic pay (Pay in Pay Band + Grade Pay) for the grade pay of Rs 5400 in PB 2 and Rs 5400 in PB 3. As per the 7th CPC chart on Pay Matrix the pay for level 9 and 10 are as follows:

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As per the 7th CPC chart on Pay Matrix the pay for level 9 and 10 are as follows:

GP 5400 in PB 2		GP 5400 in PB 3		Lesser pay in Higher Grade PM
Stages	Pay	Stages	Pay	Amount
1	53100
2	54700
3	56300	1	56100	200
17	85100	15	84900	200
18	87700	16	87400	300
23	101700	21	101400	300
24	104800	22	104400	400
31	128600	29	128200	400
32	132500	30	132000	500

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Illustration

Pre revised Pay in Pay Band	Grade Pay	Pre Revised Pay (Pay + GP)	Revised Pay in Level 9	Revised Pay in Level 10	Lesser Pay in Higher Grade
16400	5400	21800	56300	56100	200
19300	5400	24700	65200	65000	200
28600	5400	34000	87700	87400	300
35200	5400	40600	104800	104400	400
45900	5400	51300	136500	136000	500

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7th CPC Pension Fixation - Anomaly arising from the rejection of Option No. 1 for Pre-2016 Pensioners: Agenda Item for NAC Meeting

September 3, 2017, 12:33 pm

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7th CPC Pension Fixation - Anomaly arising from the rejection of Option No. 1 for Pre-2016 Pensioners: Agenda Item for NAC Meeting
 
Item No 7

Anomaly arising from the decision to reject option No.1 in pension fixation

The 7 CPC on considering various demands raised by the employees and Pensioners, while rejecting most of them at the instance or opinion tendered by the Department of Pension and Pensioners Welfare as also by the Defence Ministry in Para 10.1.67 recommended the following formulation for civilian employees including CAPF personnel who have retired prior to 01.01.2016.

The Govt in its resolution dated 4th August 2016 made its stand on the recommendation as under:

11.

Revision of Pension of pre 7m CPC retirees The Commission recommend the following pension formulation for civil employees including CAPF personnel who have retired before 01.01.2016(i) All the Civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension (ii) The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension. (iii) Pensioners may be given the option of choosing whichever formulation is beneficial to them. It is recognized that the fixation of pension as per formulation in (i) above may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring.

Both the options recommended by the 7th Central Pay Commission as regards pension revision be accepted subject to feasibility of the implementation. Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made feasible after examination by the Committee comprising Secretary (Pension) as Chairman and Member (Staff). Railway Board, Member (Staff), Department of Posts, Additional Secretary & Financial Adviser, Ministry of Home Affairs and Controller General of Accounts as Members

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The doubt over the feasibility of implementation of the said recommendations had arisen due to the report tendered by the Secretary (Pension). It was no doubt an unprecedented step taken by Secretary (Pension).

The Govt., unfortunately and unethically too, set up a committee under the chairmanship of the same Secretary (Pension) to go into the very matter of feasibility, who had expressed that very doubt at the beginning and prior to the issuance of the resolution.

The Staff side was provided with an opportunity to represent before the Committee. They had pointed out that it was feasible to implement the recommendation with relevant official records that was supposed to have been kept alive by the Government. The submissions made by the Staff side is annexed. On the specious plea that the Service Books were not available in respect of all pensioners, the committee came to the conclusion that the recommendation is not feasible to be implemented. In fact the committee made a random study on the availability of the records and came to the conclusion that of the 100 cases they had taken up, in the case of 86, the relevant records were available. In other words, the Committee itself found that only 14% of the cases the records, i.e. the Service Books will not be able to be traced. The very fact that there are other equally relevant official records from where the requisite information of the number of years of service the pensioner has put in a cadre/Grade/scale of pay etc at the time of retirement was available, was not considered by the Committee. The Committee thus erroneously came to the conclusion that the recommendation is not feasible to be implemented.

The Committee then went on to suggest an alternative proposal, which was identical to what the 5th CPC had recommended but not acted upon due to huge financial outflow by the then Government. The staff side appreciating the fact that the said recommendation of 5 CPC, if implemented even now will not only benefit the pensioners but also will be capable of removing certain anomalies that might arise if option No 1 is implemented in the case of a few pensioners, suggested that apart from the two options recommended by the 7 CPC, the Committee’s suggestion could be considered as 3rd Option.

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The rejection of the suggestion of the staff side and the recommendations of 7 cpc by the Govt regarding option No. 1 on the ground of “infeasibility” is untenable and creates a bad precedent in as much as a Govt Servant or a pensioner is made to suffer financially for the fault of the Govt of not maintaining the requisite official records for verification. For the fault of the Govt not having the records, the pensioners or the employees cannot be punished. The finding that the recommendation is not feasible for implementation is faulted as the committee itself has come to the conclusion that in 84% of the cases, the relevant records are available. The decision amounts to denial of benefit for a vast number of pensioners for the simple reason that in the case of small segment of pensioners the records are stated to be not available. The Committee’s findings are also erroneous on the ground that it did not consider whether alternate documents other than Service Books are available from where the claim of the pensioner could be verified.

From the above, it could be seen that Govt’s decision not to implement option No 1 recommended by 7 CPC is flawed and based upon factually erroneous premises and constitutes a clear cut anomaly. The said decision of the Govt requires to be revisited and pensioners given the benefit of option No 1.

We give a chart indicating the financial loss suffered by pensioners on account of the Govt decision in not implementing the recommendation of 7 CPC concerning option No 1.

Comparison of Basic Pension – option I vis-à-vis new Formula

Year of retirement	Scale of Pay At the time of retirement	Last Pay Drawn	No. of increments earned in the level	Pension as Per Option -1 Of 7 CPC	Pension as per New formula Dt 12.05.2017	Loss of Account of denial of Option -1
1985	380-12-440-15-560-20-620	620	16	23400  (Pay Matrix Level-5)	16950  (Table No. 18)	6450
1995	2000-60-2300-75-3200-100-3500	3500	20	32050  (Pay Matrix Level-6)	31100  (Table No.25)	950
2005	5500-9000	9000	20	32050  (pay matrix level-6)	27600  (Table No.31)	4450
2006	15600-39100+ GP5400	28470	16	45000  (Pay Matrix Level-10)	37800	8400
2010	9300-34822+ GP 5400	28570	17	43850  (pay Matrix Level-9)	37800	6050

Annexure.

Copy of letter No NC-JCM-2016/7th CPC (Pension) dated October 17, 2016 addressed to the Secretary, Department of Pension & Pensioners Welfare, Govt. of India, Sardar Patel Bhawan, New Delhi.

Dear Sir,

Sub: 7th  CPC recommendation. Pay determination in the case of Pre-2016 pensioners. Option No.1. Examination of feasibility.

Ref: Minutes of the meeting of the Committee in F.No. 38/37/2016 P&PW(A) Dated 10th October, 2016.

We refer to the discussions held on 6.10.2016 in the matter of feasibility of acting upon th 7th CPC recommendations (Option No.1) in the matter of pension computation and the minutes circulated under cover of the letter cited. At the outset, we would like to state that the members of the Staff Side, who were associated with the discussions, gained an impression that the Pension Department would not like to implement the recommendation of the 7th CPC connecting Option No. 1 provided to the Pensioners in determination of the revised pension. As has been pointed out by us during the discussions on 6th October, the Government has accepted the said recommendation with a rider of its feasibility of implementation. The attempt, therefore, must be to explore the ways and means of implementing the said recommendation, which benefits a large number of retired personnel, especially those retired prior to 1996. It is, therefore, highly doubtful how any alternate proposal in replacement of the accepted recommendation would be tenable.

We have the matter considered by various Pensioners Association as also the Federations of the Serving employees. We enumerate here under the feed-back we have received.

Even according to the exercise carried out by the Pension department, only in 18% of the cases, the service Books are reported to have been not available. Conversely it means that in 82% of the cases the records are available to operationalize option No.1. Besides, we find that on the basis of a random scrutiny that only 40% (Percentage varies from Department to Department depending upon the then prevailing career prospects) generally will opt to have pension fixation under the provisions of option No.1. It will work out to hardly 7% of the cases, where Service Books might not be available. As has been pointed out in the last meeting,

Gradation/Seniority list is maintained for each Cadre by the Concerned Department, where the date of promotion to the cadre inter alia is indicated. The said gradation list will reveal may other details viz, the date of birth, date of entry into government service, date of promotion to the present cadre, whether eligible for next promotion, date of superannuation etc. This apart there are several other documents maintained by the Department, which will come in handy for apart there are several other documents maintained by the Department, which will come in handy for verification of the clam, viz, the pay bills, Establishment files containing promotion orders etc.

In other words it is possible to verify the claim of any individual pensioner or family pensioner and take appropriate decision. In other words, there is no infeasibility question at all. It was also pointed out by many organisations that the retention period of Service Books in all major Departments of the Government of India is 5 years after the death of the Pensioner/ Family Pensioner and not 3 years after retirement as indicated by the Official side at the meeting. This apart, it may also be noted that the option has to be exercised by the concerned individual pensioner and he has to make a formal application to the concerned authorities. He is bound to substantiate his claim with documentary proof, whatever that is available with him.

As was pointed out by some of us in the last meeting, the non-implementation of an accepted recommendation on the specious plea of infeasibility will pave way for plethora of litigation. Apart from the administrative difficulties, the Pension Department would be saddled with if such litigations arise, it would be sad and cruel on the part of the Government to compel the pensioners to bear huge financial burden to pursue their case before the courts of law.

In view of this the Staff sife is of the firm view that the Government issue orders for implementation of Option No. 1 as there is no room for stating that the recommendation is impossible to be implemented for those who are benefited by the said option.

We are aware that certain anomalies are bound to arise on implementation of option No.1 Anomalies have arisen in the past too. What is needed is to examine those anomalies and ensure that those are genuinely addressed.

It may be noted that even under the present dispension, no two Government servants are entitled for the same pension despite they being retired on superannuation from the same grade on the same day. The promotion in lower cadres especially Group B, C and D had been few and far between a decade back in many departments and continues to be the same situation in certain organisations of the Government of India.

The vacancy based promotion system, one must admit, operates in a fortuitous manner. For no fault of the individual employee, he/she may retire without getting a promotion whereas his colleague due to sheer luck might get the promotion at the fag end of the career. The case of those employees who retired prior to the advent of ACP or MACP is really pathetic. They had to remain in certain departments in the same cadres for years together. They are in receipt of a paltry amount of pension through there is nothing distinguishable in their service careers for such deprivation. To deny them the benefit provided by the 7th CPC on the specious plea that the relevant records are not available with the Government may not only be unreasonable but also will not stand the test of judicial scrutiny.

As we have stated in the meeting, the alternative suggestion put forth by the official side is a welcome feature, for it might be a step in the right direction to remove the anomaly pointed out by the Official side when Option No.1 is implemented and will benefit those pensioners who got their promotion at the fag end of their career.. It is also likely to bring about certain extent of parity, if not full, between the old and the present pensioners. However it cannot be in replacement of the recommendation in respect of Option No.1 made by the 7th CPC. The alternate suggestion of the Pension Department may be offered as another option to the pensioners who are not benefited either by Option No.1 or 2 recommended by the 7th CPC. Such an option will eliminate to a great extent the anomalies that might arise from the implementation of option No.1.

In fine, we request that:

The Pensioners/family pensioners may be allowed to choose any one of the following three options;

(a) 2.57 time of the present pension if that is beneficial.

(b) Option No.1. Recommended by the 7th CPC, if that is beneficial for them.

(c) To determine the Pension on the basis of the suggestion placed by the Pension Department on 6.10.2016 i.e. extension of pension determination recommended by the 5th CPC (viz. arriving at notional pay in the 7th CPC by applying formula for pay revision for serving employees in each Pay Commission and consequent pension fixation) to all pre-2016 Pensioners/family pensioners, if that becomes beneficial to them.

7th CPC Pay Matrix Anomaly due to Index of Rationalization: Agenda Item for NAC Meeting

September 3, 2017, 7:09 pm

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7th CPC Pay Matrix Anomaly due to Index of Rationalization: Agenda Item for NAC Meeting

Item No 6

Anomaly due to index rationalization

In para 5.1.19 the 7th CPC has stated that the existing entry pay at each level corresponding to successive grade pay in each band from PB 2 onwards has been enhanced by an “Index of rationalisation “according to which for the pay levels in PB 2 where constructed with a factor of 2.62, in PB 3 with 2.67, PB 4 with 2.72 and HAG, HAG + apex level with 2.81 and for Cabinet Secretary with 2.78.

This is done on the plea that the role and responsibility and accountability increases at each step in the hierarchy. It was for the same reason, the 5th CPC and 6th CPCs assigned higher pay scales/pay bands to senior officers in the Govt.

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No doubt, the role, responsibility and accountability increases when one move up from the lower level of hierarchy to higher levels. That was precisely the reason that the Pay, Perks, benefits and privileges provided to them are higher. If such differential multiplication factors are used for construction of Pay at the time of each CPC, it will result in serious disturbance to the vertical relativity.

This apart, it may be noted that during period between 2006 and 2016, there had been no specific addition to the responsibilities warranting higher pay packets. In other words, the construction of Pay Level from PB2 onwards by varying multiplication factor disturbs the vertical relativity and if continued unabated will drastically alter the ratio between minimum and maximum salary in the Govt. As of date the ratio between minimum salary and maximum salary stands at 1:17.36 which was supposed to have been at a desirable level of 1:10.

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In view of the fact that the minimum wage had not been constructed properly the staff side requests that the lower Pay Levels must also be constructed on the basis of the multiplication factor of 2.81, i.e. all the Pay Levels are to be computed by applying multiplication factor of 2.81 which will enable to raise the minimum wage to Rs 19670 and the ratio between minimum and maximum would be down to 1:15.8.

7th CPC Pay Matrix - Removal of Anomaly of same stage in different Level of Pay Matrix: Agenda Items for NAC Meeting

September 3, 2017, 7:38 pm

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7th CPC Pay Matrix - Removal of Anomaly of same stage in different Level of Pay Matrix: Agenda Items for NAC Meeting

Item No 5 

Removal of Anomaly in Pay Matrix

The Pay of officials drawing different Grade Pay is fixed in the same stage in different pay level of 7th CPC Pay Matrix.

Example

Sl.	Pay	Grade Pay	Total	X 2.57	Level	Pay (in the Pay Matrix)
1	22900	5400	28300	72731	9	73400
2	22860	5400	28260	72628	9	73400
3	23660	4600	28260	72628	7	74300
4	23670	4800	28470	73168	8	74300
5	25010	6600	31600	81238	11	83300
6	24000	7600	31600	81212	12	83600
7	26800	4800	31600	81212	8	83600
8	27000	4600	31600	81212	7	83600
9	27400	4200	31600	81212	6	83600

The above table is depicting the pay fixation as per the Pay Matrix. The following anomalies may be noted.

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a) Revised Pay of an employee who has drawn 28300 (SL-I) higher basic pay in the pre-revised scale is fixed at the same stage (74300) than the employee who have drawn lower basic pay in the pre-revised scale (see Sl-2, Sl-3)

b) Revised basic pay of an employee who had drawn 28470 (SL-4) higher basic pay in the pre-revised scale is fixed at the same stage 74300 than the employees who have drawn basic pay in the pre-revised scale (see SL-1, Sl-2, SL-3)

c) Revised basic pay of an employee whose revised basic comes to 81238 (SL-5) in the revised scale is fixed at a stage (83300) equal to the employees who revised basic pay comes to 81212 (see Sl-7,8,9)

d) Revised basic pay of employees drawing GP of 4200, 4600, 4800, 7600 (SL-6,7,7,9) are fixed at the same stages from index Serial 9 to 20 (44900 to 62200) of level -6 (4200 GP), stages from index serial 1 to 12 (44900 to 62200) of level -6 (4200 GP), stages from index serial 1 to 12 (44900 to 62200) in Level -7 (4600 GP) and stages from index-2 to 10 (44900 to 62200) in Level -8 (GP-4800) are one and the same in the feeder cadre and promoted level. As a result as their pay on promotion will be fixed in the cell which would be equal to the amount in the lower level after addition of one increment.

e) An employee who is drawing more pay in the pre-revised pay is being fixed less in the revise pay eg. Revised Basic Pay drawing 21320 with GP 5400 will be fixed at 69000 on 01.01.2016 (Level 10)where as basic pay of an employee drawing 21300 with GP 5400 (Level 10) where as basic pay of an employee drawing 21300 with GP 5400 will be fixed at 69200 on 01.01.2016 (Level 9)

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f) Similarly when an employee drawing 4600 GP (Level 7) is granted MACP to 4800 GP (level 8) there is no change in his revised basic pay as per Pay Matrix.

Construction of pay matrix is done in such a way that on promotion in most of the cases the fixation falls at the same stage (even though pay level is lower and higher) thus the benefit on promotion is only the annual increment. If minimum benefit of two increments is not ensured on promotion, that will act as disincentive to the employees for accepting promotion.

Fixation of Pay on Promotion is same in 7th CPC due to same vertical stages in Pay Matrix: Agenda Item for NAC

September 3, 2017, 8:17 pm

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Agenda Items for NAC Meeting: Fixation of Pay on Promotion

Item No 4

Fixation of Pay on Promotion

The Fundamental Rule 22 (I) (a) (i) is reproduced here under;

“When a Government Servant promoted / appointed to a higher post which involves assumption of duties and responsibilities of greater importance than those attached to such permanent post, he will draw as initial pay the stage of the time scale next above his substantive pay in respect of the old post”.

In the existing Pay Matrix the vertical stages are same in most of the Levels, such Level 2 & 3, 6 & 7, 7 & 8, and 6 & 8 etc. Because of this, if an employee is promoted under the regular promotion scheme or  MACP his pay will be almost the same. This has happened only because Rule 13 of the revised Pay Rules, 2016 the fixation of pay on promotion is stipulated in the manner stated in para 1 above. In other words, the omission of the words at the stage next above the notional pay in FR was changed to a cell equal to the figure so arrived at.

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The above stated stipulation imposes reduced / or no financial benefit to an employee on promotion. In many cases the benefit has now become equivalent to one annual increment. The clause in the exisiting FR subject to a minimum has also been omitted in the revised pay rules.

In the existing pay matrix, the stages are same in most of the levels such level 2 & 3, 6 & 7, 7 &8, 6 & 8 etc. In this situation, if an employee is promoted/upgrated under MACPS from one level to another level, his pay will be almost same as he may drew even without promotion.

For example, an employee (Senior Accountant) working in Level 6 (erstwhile GP 4200) and drawing pay of Rs 47600/- (Cell – II in Level 6) with effect from 01.07.2016 after annual increment, is granted MACPS to level 7 (erstwhile GP 4600) or promoted to the post of Asstt, Accounts Officer (AAO) to level 8 (erstwhile  GP 4800) with effect from 01.04.2017, his pay will be fixed as under, as per Rule -13 of CCS (RP) Rules 2016 –

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1. Basic Pay in the revived pay structure (Level -6)   -47600

2. On upgradation under MACPS to Level -7   -49000

3. On promotion to higher level (AAO) Level -8   -49000

4. On drawing one increment (without promotion or MACPS) Level-6 -49000

It can be seen that there is no improvement on promotion/upgradation, which can never be the intention.

Necessary amendment in the Rule-13 that – “on promotion/upgradation of an employee, if the stage/cell on pay fixation is equal in the promoted/upgraded level, he shall be placed at the next higher cell/stage in the promoted scale (Level)’ – may be made.

7th CPC Bunching - Removal of condition of 3% stipulated to grant bunching benefit to MTS: Agenda Items for NAC Meeting

September 3, 2017, 8:34 pm

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7th CPC Bunching - Removal of condition of 3% stipulated to grant bunching benefit to MTS: Agenda Items for NAC Meeting

Item 3

Removal of condition of 3% stipulated to grant bunching benefit

One of the conditions stipulated for grant of Bunching increment is that the difference between the lower and higher pay should be atleast 3%.

It could be seen that at many levels of the Pay Matrix, the difference between one cell and another is less than 3% of the Basic Pay of the amount in the lower cell. However, the said lesser amount is still treated as one increment. In the circumstance to deny the government servant the Bunching increment on the ground that the difference is less than 3% is not reasonable. The said condition required to be removed. Given here under is the illustration which explains the issue.

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(1) The pay as per the 7th CPC of MTS drawing pay of 7210 and 7430 in the pre-revised pay is bunched and ficed at Rs. 19700. As per the bunching orders issued by Finance Ministry, the official drawing Rs. 7430 in the pre-revised scale will get additional increment and will be fixed at Rs. 20300/- with effect from 1.01.2016.

But the MTS officials drawing Rs. 7660/- in the pre-revised pay are also getting revised pay fixed at Rs.20300 with effect from 01.01.2016.

It is requested that to remove the anomaly, the MTS officials who are drawing Rs.7660/- in the pre-revised scale may also be made eligible to get additional increment.

Loss in increment in 7th CPC Pay Matrix - Demand of 3% Increment at all stages: Agenda Items for NAC Meeting

September 3, 2017, 8:49 pm

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Loss in increment in 7th CPC Pay Matrix - Demand of 3% Increment at all stages: Agenda Items for NAC Meeting

Item No:2

3% Increment at all stages

In Para 5.1.21, the Commission has stated that it has constructed the Pay Matrix, which has two dimensions i.e. horizontal and vertical ranges. The vertical range is supposed to denote the pay progression with the level. The steps are to reflect the annual forward progression of three per cent in each level. More specifically under the Caption “Annual increment” in Para 5.1.38, the Commission has emphatically stated that the annual increment is being retained at 3 percent. 

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In the forward to the report, the Chairman Justice Shri AK Mathur (Para 1.19) writes “the prevailing rate of increment is considered quite satisfactory and has been retained”. This apart in para 4.1.17, the Commission states that the various stages within a level moves upward @ 3% p.a.

Having stated categorically that a Govt servant must get his annual increment @3% of his pay, the recommendation that one’s pay on award of annual increment must move to the next cell in the matrix would become tenable only if the difference between the two cells is more than 3% of the Pay of the Govt servant. 

From the chart annexed it could be seen that it is not so at many stages warranting a revision of the Pay Matrix at those level, where the employee gets less than 3% as has annual increment when he moves on to the next higher stage in the matrix.

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ILLUSTRATION –I – LOSS IN INCREMENT

Pay Level	Sl.No. in the Pay Level (Cell)	Basic Pay in the Revised Pay Scale	Next above Basic Pay after adding 3% increment	Next above Basic Pay fixed as per pay matrix	Amount of loss to the employee	Actual increment rate %age
1	12	24900	25647	25600	47	2.81
1	26	37600	38728	38700	28	2.92
3	9	27600	28428	28400	28	2.89
3	16	34000	35020	35000	20	2.94
4	11	34300	35329	35300	29	2.91
4	22	47500	48925	48900	25	2.94
5	10	38100	39243	39200	43	2.88
5	20	51100	52633	52600	33	2.93
6	6	41100	42333	42300	33	2.91
6	9	44900	46247	46200	47	2.89

Recompute 7th CPC Minimum Pay & Multiplication Factor - Anomaly in computation of Minimum Wage: Agenda Item for NAC Meeting

September 3, 2017, 9:08 pm

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Recompute 7th CPC Minimum Pay & Multiplication Factor - Anomaly in computation of Minimum Wage: Agenda Item for NAC Meeting

Item No 1

Anomaly in computation of Minimum Wage

In Para 1.29 of Chapter 1 of the 7th CPC report, the larned Chairman of the Commission Justice Shri AK Mathur has approvingly quoted the following observation their Lordship in the Supreme Court in the case of Bhupendranath Hazarika and Another Vs. State of Assam (SC 2013 (2) Sec.516)

“……….. It should always be borne in mind that legitimate aspirations of the employees are not guillotined and a situation is not created where hopes end in despair. Hope for everyone is gloriously precious and that a model employer should not convert it to be deceitful and treacherous by playing a game of chess with their seniority. A sense of calm sensibility and concerned sincerity should be reflected in every step. An atmosphere of trust has to prevail and when the employees are absolutely sure that their trust shall not be betrayed and they shall be treated with dignified fairness then only the concept of good governance can be concretized. We say no more.”

Naturally the recommendations of the 7th CPC ought to have been in consonance with the spirit of the observations made in Para 1.29, While determining the Minimum Pay (Chapter 4.2). The Commission is on record to state that it shall abide by the formula of Dr WR Aykroyd as amended by Supreme Court in the case of Workmen represented by Secretary Vs. Management of Reptakos Brett and Co. Ltd and Anr. on 31st October, 1991 (Equivalent citations: 1992 AIR 504, 1991 SCR Supl. (2) 129). In its submissions made to the Govt, the Staff Side had pointed out the errors and omissions crept in the computation of Minimum wage and its consequential impact. The Commission’s recommendations in this regard was clearly in violation of what has been stated in para 1.29 (quoted above). We annex for ready reference the extracts from our own submissions pertaining to this issue.

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Our submission to Cabinet Secretary on 7th CPC:

“We are not in agreement with the methodology adopted by the 7th CPC in computing the minimum WAGE. We give hereunder briefly the reasons thereof.

1. The retail prices of the commodities quoted by the Labour bureau is irrational, imaginary and even absurd in respect of certain articles at certain places. The Staff Side had objected to the adoption of those rates in its meeting with the Commission on 9th June, 2015.
   
2. The adoption of 12 monthly average of the retail prices is contrary to Dr. Aykroyd formula. Same is the case with the reduction effected by the Commission on housing and social obligation factors. The house rent allowance is not a full compensation of the expenditure incurred by an employee for obtaining an accommodation. Therefore, no reduction on that count in arriving at the minimum wage is permissible. We may cite the minimum wage computation made by the 3rd CPC in this regard. The employees were in receipt of HRA even at that time. But still the 3rd CPC, and rightly so, adopted the 7.5% as the factor for housing. In respect of the addition to be made for children education and social obligation as per the Supreme Court judgement, (25%) the Commission has reduced the percentage to 15% on the specious plea that the employees are separately given children education allowance. The Children education allowance is not a full reimbursement of the expenses one has to incur. After the liberalization of the Education Sector where private parties were allowed to set up universities and colleges, the expenses for education had increased heavily. No concession or allowance is granted to the employees for educating the children beyond the higher secondary levels. The earlier Pay Commission has only tried to compensate a little in the increasing cost of education and that too at the primary level, since even the Governmental institutions had started charging abnormal tuition and other fees.
   
3. The website maintained for the Agriculture Ministry depicts the retail prices of commodities which go into the basket of minimum wage computation. Even though the rates quoted by them vary from the real retail prices in the market, it provides a different picture. If one is to take the rates quoted by them for different cities and make an all India average of the prices as on 1.7.2015, it will work out to Rs. 10810. It will result in the computation of the minimum wage of Rs. 19880. Adding 25% for arriving at the MTS scale, it will rise to Rs. 24850. To convert the same as on 1.1.2016, 3% will be added as suggested by the 7th CPC. The final computation will be Rs. 25,596, when rounded off shall be Rs. 26000.
   
4. The Andhra Pradesh State Pay Commission in its report has taken the commodity prices at Rs. 9830,- as on 1.7.2013 which works out to a minimum wage of Rs. 18080. The wage of MTS will then be Rs. 22600 as on 1.7.2013. The Corresponding figure for 1.1.2016 shall be Rs. 26758, rounded off to Rs. 27000.
   
5. The Staff side had computed the minimum wage as on 1.1.2014 at Rs. 26,000, taking the commodity price at Rs. 11344. The rates were taken on the basis of the actual retail prices in the market as on 1.1.2014 (average prices of 8 Cities in the country) substantiated by the documentary evidence of Cash bill obtained from the concerned vendors. As on 1.12016, the minimum wage work out to Rs. 29339, rounded off to Rs. 30,000.
   
6. The 5th CPC adopted the rate of growth in the economy (as reflected in the increase in the per capita net national produce at factor cost) over a period of ten years to arrive at the increase required to be made to arrive at the minimum wage. The per capita NNP at factor cost registered an increase of 65.28% over a period of ten years in 2013-14. If we apply the same percentage to the emoluments (Pay +DA) as on 1.1.2016 (assuming that DA will be 125% as on that date), the minimum wage as on 1.1.2016 for an MTS will have to be Rs. 26030, rounded off to Rs. 27000.
   
7. In para 4.2.9 of the report, the Commission has given a table depicting the percentage increase provided by the successive Pay Commissions, according to which the 2nd CPC had made a paltry increase of 14.2%. The 3rd CPC gave a rise of 20.6, 4th 27.6, 5th 31.0 and 6th CPC 54%. While the per centage increase had been in ascending order all along, the 7th CPC has sought to reverse that trend ostensibly for reasons unknown. It was the meager increase of 14% provided for by the 2nd CPC that triggered the volatile situation in the civil service and led to all India strike encompassing all employees which lasted for 5 days in 1960.
   
8. In the case of Bank, Insurance and many other Public Sector Undertakings wage revision takes place once in 5 years. In the recently concluded agreement, Bank employees were provided more than 15% increase.
   
9. After the implementation of the Pay Commission Report the AP State Employees have been given a wage structure based on a minimum wage for above the level of Central Government employees. In their case also wage revision does take place once in 5 years.

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It could be seen from the above that the computation of minimum wage by the 7 CPC is prima facie wrong and computed on untenable premises and incorrect data. The minimum wage therefore requires re-computation and revision. Once the minimum wage gets revised, the fitment formula, the multiplication factor applied for determining the pay levels and the pay matrix itself will have to be consequently revised.”

It could be seen from the above extract that the Minimum Wage as on 1.1.2016 could not have been computed at less than Rs 26000/- and consequently the multiplication factor ought to have been at 3.714. It is, therefore, demanded that the Minimum Wage and multiplication factor may be recomputed and Pay Level and Pay matrix changed in accordance with the revised minimum wage.

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Implementation of 7th CPC: National Anomaly Committee Agenda Items submitted by NC JCM Staff Side

September 3, 2017, 9:18 pm

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Implementation of 7th CPC: National Anomaly Committee Agenda Items submitted by NC JCM Staff Side

Shiva Gopal Mishra
Secretary

National Council (Staff Side)

Joint Consultative Machinery

for Central Government Employees

13-C, Ferozshah Road, New Delhi – 110001

E Mail : nc.jcm.np@gmail.com

No.NC-JCM-2017/7th CPC Anomaly

August 16, 2017

To
The Dy. Secretary - JCA
Department of Personnel & Training
North Block
New Delhi – 110001

Sub:-  Items of agenda for National Anomaly Committee Meeting

Ref:- Your letter No. 11/2/2016-JCA Dated 5/5/2017 and 17.7.2017

Dear Sir,

We send herewith items for inclusion in the agenda for the National Anomaly Committee meeting. There may be a few items, apart from these, as finalized items have only been circulated a few days amongst our constituents. We shall submit the same as soon as it is received.

Thanking you,

Yours faithfully,

Shiv Gopal Mishra

Secretary

Agenda Item No 1: Anomaly in computation of Minimum Wage

Agenda Item No 2: 3% Increment at all stages

Agenda Item No 3: Removal of condition of 3% stipulated to grant bunching benefit

Agenda Item No 4: Fixation of Pay on Promotion

Agenda Item No 5: Removal of Anomaly in Pay Matrix

Agenda Item No 6: Anomaly due to index rationalization

Agenda Item No 7: Anomaly arising from the decision to reject option No.1 in pension fixation

Agenda Item No 8: Lesser Pay in higher Level of Pay Matrix

Agenda Item No 9: Bunching of steps in the Revised Pay structure

Agenda Item No 10: Minimum Pension

Agenda Item No 11: Date of Effect of Allowances – HRA, Transport Allowance, CEA etc.

Agenda Item No 12: Parity in Pay Scale between Sr Auditor/Sr Accountant of IA&AD

Agenda Item No 13: Parity in Pay Scales between Assistants/Stenographers

Agenda Item No 14: Grant of GP 5400 to Senior Section Officer of Railways & AAOs of IA&AD

Agenda Item No 15: Technical Supervisors of Railways

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7th CPC Travelling Allowance Rules - Clarification: Finance Ministry OM dated 04.09.2017

September 4, 2017, 8:53 am

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7th CPC Travelling Allowance Rules - Clarification: Finance Ministry OM dated 04.09.2017

F. No. 19030/1/2017-E.IV

Government of India

Ministry of Finance

Department of Expenditure

New Delhi, dated the 04th September, 2017

OFFICE MEMORANDUM

Subject :- Travelling Allowance Rules - Implementation of the Recommendations of the Seventh Central Pay Commission.

Consequent upon the issuance of this Department's O.M. of even number dated 13.07.2017 regarding implementation of recommendations of 7th CPC on Travelling Allowance (TA), various references are being received in this Department seeking clarifications regarding TA/Daily Allowance (DA) entitlements of Officers in Level 13A. Level 13A (pre-revised Grade Pay of Rs. 8900/-) has been included in the Pay Matrix vide Notification No. GSR 592(E) dated 15.06.2017.

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2. The matter has been considered in this Department and with the approval of Competent Authority, it has been decided that TA/DA entitlements of Officers in Pay Level 13A (pre-revised Grade Pay of Rs. 8900/-) shall be equivalent to TA/DA entitlements of Officers in Pay Level 13 (pre-revised Grade Pay of Rs. 8700/-) as mentioned in this Department’s O.M. of even number dated 13.07.2017.

Hindi version is attached.

Sd/-

(Nirmala Dev)

Deputy Secretary to the Government of India

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7th CPC Revision of Pension of Pre-2016 Defence forces Pensioners/family Pensioners: DESW Order 04.09.2017 in view of NAC decision

September 4, 2017, 11:39 am

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7th CPC Revision of Pension of Pre-2016 Defence forces Pensioners/family Pensioners: DESW Order 04.09.2017 in view of NAC decision

No. 17(01)/2017(01)/D(Pension/Policy)

Government of India

Ministry of Defence

Department of Ex-Servicemen Welfare

New Delhi, Dated 4th September, 2017

To

The Chief of the Army Staff

The Chief of the Naval Staff

The Chief of the Air Staff

Subject-Implementation of Government’s decision on the recommendations of the 7th Central Pay Commission (CPC) - Revision of pension of pro-1.1.2016 Defence Forces pensioners/ family pensioners etc.

Sir,

The undersigned is directed to refer to this Ministry's letter No. 17(01)/2016 D(Pen/Pol) dated 29th October 2016 for revision of pension of pre-2016 Defence Forces pensioners/ family pensioners in implementation of the Government decisions on the recommendations of the 7th CPC. As per para 9 of this Ministry's said order dated 29th October 2016 the revision of disability element of disability pension was held in abeyance pending decision of National Anomaly Committee to whom matter was referred by MoD to decide methodology for calculation of disability element of disability pension under 7th CPC. The National Anomaly Committee has recommended that parity with Civilians for grant of Disability element which was granted to Defence Forces under 6th CPC, shall be maintained.

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2. The recommendations of the National Anomaly Committee have been considered by the Government. In partial modification of Ministry's order dated 29th October 2016, the President is now pleased to decide that Disability element of disability pension for Defence Forces Pensioners shall also be revised by multiplying the existing rate of disability element as had been drawn on 31.12.2015 by factor of 2.57 to arrive at revised rate of disability element as on 1.1.2016. The amount of revised disability element so arrived shall be round-ed off to next higher rupee.

3. Para 13 of this Ministry's above quoted letter dated 29.10.2016 regarding “Ex-gratia awards to Cadets in cases of disablement” shall be replaced with the following:

13. EX-GRATIA AWARDS TO CADET (DIRECT) The ex-gratia award payable to Cadet (Direct)/ NoKs in cases of disablement / death shall be payable subject to the same conditions as hitherto in force in the event of invalidment on medical ground / death of a Cadet (Direct) due to causes attributable to or aggravated by military training

(i) Monthly Ex-gratia amount of Rs 9,000/- per month

(ii) In cases of disablement, Ex-gratia disability award @ Rs 16,200/- per month shall be payable in addition for 100% of disability during period of disablement subject to prorata reduction in case the degree of disablement is less than 100%. "No ex-gratia disability award shall be payable in cases where the degree of disablement is less than 20%.”

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4. The dearness relief sanctioned by the Government from 1.1.2016 and thereafter, shall also be paid on rates of disability element and monthly ex-gratia award to Cadet(Direct), revised in accordance with the provision of this letter.

5. Vide para 10(ii) of MOD order dated 29.10.2016, it was ordered to pay the Constant Attendance Allowance(CAA) at the existing rate since matter regarding grant of Allowances was under examination by the Committee on Allowances (CoA). in this regard, Ministry of Finance vide Resolution dated 6th July 2017 (Appendix II item 37 has accepted the recommendation of 7th CPC to enhance the existing Constant Attendance Allowance @ 4500/ p.m. by 50%. DoP&PW vide O.M No. 1/4/2017-P&PW(F) dated 2.8.2017 has issued orders in this-regard for civilian pensioners. Accordingly, for Armed Forces personnel the Constant Attendant Allowance shall continue to be admissible under the condition as hitherto fore at the existing rate from 1.1.2016 to 30.06.2017. However, it shall now be admissible at the enhanced uniform rate of Rs. 6750/- per month, irrespective of the rank with effect from 1.7.2017.

6. With reference to the provisions contained in Para 5.4 of this Ministry's letter dated 29th October, 2016, it is further clarified that the maximum ceiling shall be applicable only in the case of Service/Retiring Pension, Service element of Disability/ liberalized disability /War Injury Pension and Ordinary family Pension. The said ceiling is not applicable in the cases of Disability/ Liberalised Disability/ War injury element. Special Family/ Liberalized Family Pension etc. applicable under casualty pensionary awards.

7. The provisions of this Ministry's letter dated 29th October 2016, which are not affected by the provisions of this letter, shall remain unchanged.

8. The provisions of this letter shall take effect from 1.1.2016

9. This issues with the concurrence of Finance Division of this Ministry their U.O. No. Part File (1) to (30)(01)/2016/Fin/Pen dated 14th August 2017.

10. Hindi version will follow.

Yours faithfully,

(Manoj Sinha)

Under Secretary to the Government of India

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DESW Order dt 04.09.2017 - 7th CPC Pension/Gratuity/ Commutation/Family Pension i.r.o. CO/JCO/OR retiring/dying on or after 01.01.2016

September 4, 2017, 1:16 pm

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DESW Order dt 04.09.2017 - 7th CPC Pension/Gratuity/ Commutation/Family Pension i.r.o. CO/JCO/OR retiring/dying on or after 01.01.2016

No. 17(02)/2016-D(Pen/Pol)

Government of India

Ministry of Defence

Department of Ex-Servicemen Welfare

New Delhi

Dated 4th September 2017

To

The Chief of the Army Staff 

The Chief of the Naval Staff

The Chief of the Air Staff

Sub: Implementation of the Government decision on the recommendations of the Seventh Central Pay Commission - Revision of provisions regulating Pension/ Gratuity/ Commutation of Pension/ Family Pension including pensionary awards notified in terms of Casualty pensionary awards in respect of Commissioned Officers, Junior Commissioned Officers Other Ranks, Retiring or dying in harness on or after 1.1.2016.

Sir,

The undersigned is directed to refer to the Government's decisions on the recommendations of the Seventh Central Pay Commission notified vide Government of India, Ministry of Defence, Department of Ex-Servicemen Welfare Resolution bearing No 17(l)/2014/D(Pension/Policy) dated 30.9.2016, recommendations of National Anomaly Committee on methodology for calculation of disability element for Defence Forces and Ministry of Personnel, Public Grievances and Pension, Department of Pension” and Pensioners' Welfare Office Memorandum No. 38/37/2016 - P&PW(A) (i) dated 4.8.2016 as modified vide OM F No 42/14/2016-P&PW(G) dated 24.10.2016. Sanction of the President is hereby accorded for modification in the rules regulating Pension, Family pension, Retirement/ Death/Service Gratuity, Commutation of pension, pensionary awards under casualty pensionary awards including Ex-gratia lump sum compensation in cases of invalidment etc., to the extent specified in this letter.

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2. The provisions of the Pension Regulations, 2008 of Army and various Services Regulations, Instructions and Government Orders issued by this Ministry from time to time, which are not affected by the provisions of this letter, shall remain unchanged.

3. DATE OF EFFECT

3.1 The revised provisions of this letter shall apply to the Commissioned Officers (including MNS and Territorial Army Officers), Junior Commissioned Officers and Other Ranks of the three Services, Non-Combatants (Enrolled) in the Air Force, Defence Security Corps and the Territorial Army (hereinafter collectively referred to as Armed Forces Personnel) who retired/discharged! released/invalided out or died in harness on or after 1.1..2016. Separate orders have already been issued in respect of Armed Forces Personnel who retired/died before 1.1.2016.

3.2 Where Pension! Family Pension/ Death Gratuity/ Retirement Gratuity/ Commuted Value of Pension or pensionary awards under casualty pensionary awards has already been sanctioned provisionally, or otherwise, in cases of retirement/death occurring on or after 1.1.2016, the same shall be revised in terms of these orders. In cases where pension has been finally sanctioned under the pre-revised orders and if it happens to be more beneficial than the pension becoming due under these orders, the pension already sanctioned shall not be revised to the disadvantage of pensioner.

4. RECKONABLE EMOLUMENTS

4.1 The term ‘Reckonable Emoluments' for the purpose of calculating various-pensionary benefits other than various kinds of Gratuities, shall consist the following-

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4.1.1 Commissioned Officers: Pay in the Pay Matrix, Military Service Pay and Non Practicing Allowance, if any, last drawn by the officer (Refer - Army Officer Pay Rules-2016, Air Force Officer Pay Rules-2017, Navy Officer Pay Regulations-2017 as may be the case)

4.1.2 Junior Commissioned Officers & Other Ranks: Pay in the Pay Matrix, Military Service Pay, and 'X’ Group Pay & Classification Allowance, if any, last drawn by the JCOs/ORs ”(Refer - Army Pay Rules-2017, Air Force Pay Rules-2017, Navy Pay Regulations-2017 as may be the case).

4.2 For calculation of all kinds of gratuities, dearness allowance admissible on the date of retirement/discharge/invalided out/death, shall continue to be treated as part of emoluments along with the emoluments as defined in para 4.1 above.

4.3 SPECIAL PROVISIONS FOR THOSE WHO OPTED TO CONTINUE T.O DRAW PAY IN THE PRE-REVISED SCALE OF PAY

4.3.1 Those who have elected to continue to draw pay in the pre-revised scale of pay and have retired/ discharged/ invalided out of service on or after 1.1.2016, “their pension and gratuity, as applicable, shall be calculated under the rules in force immediately before coming into effect of these-orders”.

4.3.2 The term 'Reckonable Emoluments‘ for the purpose of pensionary benefits under this Para 4.3.1 shall be the same as defined in para 3.1 of this Ministry's letter No 17(4)/2008(2)/ D(Pen/Pol) dated 12.11.2008 and shall also include Dearness Allowance notified under Sixth CPC Pay structure.

4.3.3 Entitlement of gratuity shall be determined, under the order in force-immediately before coming into effect of these orders subject to the maximum ceiling as prescribed in Para 8 of this Ministry's letter No. 17(4)/2008(2)/D (Pen/Pol) dated 12.11.2008.

4.3.4 Family Pension shall also be allowed in accordance with orders applicable prior to the issue of these orders.

4.4 In the case of Commissioned Officers and JCOs/ORs who have opted for the revised pay structure and have retired/discharged within 10 months from the date of coming over to the revised pay structure, the average emoluments for 10 months period preceding retirement/discharge will be calculated by taking into account pay as follows:-

(a) For the period during which pay is drawn in the revised pay	Pay drawn in the prescribed Pay Matrix plus structure Military Service Pay, 'X‘ Group pay and whole of Classification Allowance (where applicable in case of JCOs/ORs) and Non Practicing Allowance, if any.
(b) For the period during which pay was drawn in the pre-revised pay scales	Pay determined after applying multiplying factor of 2.57 to the sum of existing pay in the Pay Band, Grade Pay, Military Service Pay, ‘X‘ Group Pay (in case of JCOs/ORs) and NPA, if any, drawn during the relevant period plus whole of classification allowance, if an ,drawn by JCOs/OR.

5. QUALIFYING SERVICE

5.1 The minimum period of qualifying service prescribed for earning various kind of pension and gratuity by Defence Forces personnel, shall continue as hithertofore. There shall also be no change in the provisions for determining reckonable qualifying service for calculating pension and gratuity.-

6. PENSION

6.1 Subject to para 6.2, there shall be no change in the provisions regulating the amount of pensions including pension determined under casualty pensionary awards. However, the provisions for determining pension based on, notional maximum of pre-revised pay scale in respect of JCOs/OR, shall be discontinued.

6.2 The amount of pension shall be subject to a minimum of Rs 9,000/- and the maximum pension would be 50% of highest pay in the Government (the highest pay in the Government is Rs 2,50,000/- with effect from 1.1.2016). However, the maximum ceiling'shall be applicable only in the case of Service/Retiring Pension, Service element of Disability/ Liberalized disability/ War Injury Pension and Ordinary Family Pension. The said ceiling is not applicable in the cases of Disability/ Liberalized Disability/ War injury element, being authorized under casualty pensionary awards.

6.3 The quantum of additional pension/family pension available to the old pensioners/family pensioners shall be continue to be as follows-

Age of pensioner / family pensioner	Additional quantum of pension
From 80 years to less than 85 years	20% of revised basic pension/ family pension
From 85 years to less than 90 years	30% of revised basic pension /family pension
From 90 years to less than 95 years	40% of revised basic pension / family pension
From 95 years to less than 100 years	50% of revised basic pension / family pension
100 years or more	100% of revised basic pension/ family pension

The Pension Sanctioning Authorities should ensure that the date of birth and the age of a pensioner! family pensioner, are invariably indicated in the Pension Payment Order to facilitate payment of additional pension by the Pension Disbursing Agencies as soon as it becomes due. Dearness relief shall also be admissible on the additional pension available to old pensioners/family pensioners.

Note: The additional pension payable to old pensioners/ family pensioners of 80 years of age and above shall also be applicable to old pensioners/ family pensioners of 80 years of age and above in receipt of War injury pension! Disability pension/ Liberalized family pension! Special family pension.

7. GRATUITY

7.1 The maximum limit of all kinds of Gratuity is. Retiring/ Retirement /Service Invalid/ Special/ Terminal/ Death Gratuity shall be Rs. 20 lakhs. This ceiling on gratuity shall be increased by 25% whenever the Dearness Allowance rises by 50% of the basic pay.

7.2 DEATH GRATUITY

The rates for payment of death gratuity shall be as under:

Length of qualifying service	Rate of Death Gratuity
Less than One year	2 times of monthly emoluments
One Year or more but less than 5 years	6 times of monthly emoluments
5 years or more but less than 11 years	12 times of monthly emoluments
11 years or more but less than 20 years	20 times of monthly emoluments
20 years or more	Half month's emoluments for every six monthly period of qualifying service subject to a maximum of 33 times of emoluments.

8. FAMILY PENSION

8.1 Subject to para 8.2, there shall be no change in the provisions regulating the amount of various kinds of family pensions including family pension determined under casualty pensionary awards and additional family pension applicable to old family pensioners.

8.2 . The amount of all kind of family pension shall be subject to a minimum of Rs 9,000/-. The maximum amount of normal rate and enhanced rate of ordinary family pension shall be 30% and 50% respectively of highest pay in the Government which is Rs 250,000/- with effect from 1.1.2016. The maximum ceiling is, however, not applicable in the cases of Special Family! Liberalized Family Pension etc., applicable under casualty pensionary awards.

8.3 The dependency criteria for the purpose of family pension shall continue to be the minimum family pension along with Dearness Relief thereon.

9. Ex-GRATIA LUMP SUM COMPENSATION IN CASES OF INVALIDMENT

9.1 - The Ex-gratia lump Sum compensation to Defence Service personnel who are boarded but of service on account of disability/ war injury attributable to or aggravated by military service, shall be paid @ Rs 20 lakh for 100% disability subject to provisions as stipulated in this Ministry's letter No. 2(2)/2011/D(Pea/Pol) dated 26.12.2011. For disability/ war injury less than 100% but not less than 20%, the amount of Ex-gratia compensation shall be proportionately reduced. No Ex-gratia lump sum compensation shall be payable for disability/ war injury less than 20%. The proportionate compensation would be based on actual percentage of disability as certified by the Invaliding Medical-Board, without applying broad banding provisions as contained in Para 7.2 of this Ministry‘s letter No 1(2)!97/D(Pen-C) dated 31.01.2001.

10. BROAD-BANDING OF PERCENTAGE OF DISABILITY/WAR INJURY ON DISCHARGE

10.1 Where an Armed Forces personnel is discharged/retired under the circumstances mentioned in Para 4.1 of this Ministry's letter No l(2)/97/D(Pen-C) dated 311.2001 with disability including cases covered under this Ministry's letter “No 16(5)/2008/D(Pen/Policy) dated 29.9.2009 and the disability/ war injury has been accepted as 20% and more, the extent of disability or functional incapacity shall be determined in the manner prescribed in Para 7.2 of said letter dated 31.1.2001 for the purpose of computing disability! war injury. 

10.2 Rates for calculation of disability where composite assessment is made due to existence of disability, as well as war injury, shall be determined in terms of provision contained in Para 3(b) of Ministry’s letter No. 16(02)/2015-D(Pen/Pol) dated 8th August 2016.

11. EX-GRATIA AWARDS TO CADET (DIRECT)

11.1 In cases of disablement ! death, following Ex-gratia award shall be payable subject to the same conditions as hitherto in force in the event of invalidment on medical ground / death of a Cadet (Direct) due to causes attributable to or aggravated by military training.

11.1.1 Monthly Ex-gratia amount of Rs 9,000/- per month.

11.1.2 In cases of disablement, Ex-gratia disability award @ Rs 16,200/- per month shall be payable in addition for 100% of disability during period of disablement subject to prorata reduction in case the degree of disablement is less than 100%. No disability award shall be payable in cases where the degree of disablement is less than 20%.

11.1.3 In cases of death, Ex-gratia amount of Rs 12.5 Iakhs.

11.1.4 The Ex-gratia awards to Cadets (Direct)! NoK, shall be sanctioned purely on ex-gratia basis and the same shall not be treated as pension for any purpose.

However, dearness relief at applicable rates shall be granted on monthly ex-gratia as well as ex-gratia disability award.

12. CONSTANT ATTENDANT ALLOWANCE (CAA)

12.1 "Constant Attendant Allowance shall continue to be admissible under the condition as hithertofore at the existing rate from 1.1.2016 to 30.06.2017. However, it shall be admissible at the uniform rate of Rs. 6750!- per month, irrespective of the rank with effect from 1.7.2017.”

13. COMMUTATION OF PENSION:

13.1 There shall be no change in the provisions relating to commutation values, the limit upto that the pension can be commuted or the period after which the commuted pension is to be restored.

13.2 The pensioners who have retired between 1.1.2016 and date of issue of orders for revised pay/ pension based on the recommendations of the 7th CPC, shall have an option, in relaxation of provisions of relevant Pension Regulations, not to commute the pension which has become additionally commutable on retrospective revision of pay / pension on implementation of recommendations of the 7th CPC, Option form to be used for this purpose shall be prescribed by the PCDA (Pension), Allahabad along with their implementation instructions.

13.3 The option may be invited only from those who Want to commute their pension which has become additionally commutable as per Para 13.2 above and no commutation shall be allowed as a default. In such cases, RO/HOO/PSAs will finalize the cases without waiting for Option for commutation of additional pension and such option, if any, received later on (within four months from the date of issue of this letter) may be processed separately for additional commutation. Option for additional commutation on the basis of revised pension once exercised would be final and in no case it would be entertained at a later stage. Service Hqrs may be deputed as Nodal agencies to carry out such exercise with the respective ROs for the speedy implementation of work and forward such cases to PSAs.

GENERAL INSTRUCTIONS

14. The amount of various pensionary awards admissible in terms of this order, shall be round-ed off to the next higher rupee by the Pension Sanctioning Authorities.

15. If the amount of any monthly pension! family pension admissible under the provisions of this letter works out to be less than Rs 9,000/- per month, it shall be stepped up to Rs 9,000!- per month and authorized for payment at this rate.

16. The pension/ family pension notified in terms of these orders from 1.1.2016 or thereafter, shall qualify for dearness relief sanctioned by the Government from time to time in accordance with the relevant rules! instructions.

PROCEDURE FOR SANCTION OF'REVISED PENSION TO THOSE WHO HAVE ALREADY RETIRED

17. For revision of pensionary awards as per provisions of this letter in respect of Armed Forces personnel who have already retired/ discharged/ invalided out/ died on or after 1.1.2016 and in whose cases, pensionary benefits at pre-revised rates have already been notified, the Record Offices concerned in case of JCOs/ORs and PCDA(O) Pune/ Naval Pay Office Mumbai/ AFCAO, New Delhi, as the case may be in respect of commissioned officers, will initiate and forward revised LPC-cum-Data Sheet as prescribed by PCDA(Pensions), Allahabad, to their respective Pension Sanctioning Authorities (PSAs) for issue of Corrigendum PPOs notifying the revised pensionary awards. Further, implementation instructions to all concerned, shall be issued by PCDA (Pensions), Allahabad immediately on receipt of these orders.

18. Pension Regulations of the three Services, shall be amended in due course.

19. This issues with the concurrence of the Finance Division of this Ministry vide their ID Note No.10(03)/2017/Fin/Pen dated 30.08.2017.

20. Hindi version will follow.

Yours faithfully

(Manoj Sinha)

Under Secretary to the Government of India

Source: Click on image to view download signed PDF

Enhancement of remuneration of retired Medical officers appointed on contract basis in Postal Dispensaries

September 4, 2017, 8:06 pm

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Enhancement of remuneration of retired Medical officers appointed on contract basis in Postal Dispensaries: Deptt. of Posts Order dated 28.08.2017

No.2-1/2012-Medical

Government of India

Ministry of communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi -110001

28 August 2017

To,

The Chief Postmasters General,
Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand,
Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal 2

Sub: - Enhancement of remuneration of retired Medical officers appointed on contract basis in Postal Dispensaries.

Sir/Madam,

In continuation of this Directorate letter of even No. dated 30th September, 2014 vide which remuneration payable to newly appointed contractual doctors in P&T dispensaries were enhanced to ₹ 60,000/- per month. It has now been decided to enhance the remuneration further to ₹ 75,000/- from ₹ 60,000/- per month. It is requested that instructions of Rule-177 of General Financial Rules-2017 may be complied with.

This should come into effect w.e.f. 1st July, 2017 and it issues with the concurrence of  JS & FA vide Dy. No. 1603 dated 2nd August, 2017.

Yours faithfully

(Smriti Sharan)

Deputy Director General (Medical)

Source: Click on image to view/download the signed PDF

7th CPC /Pension revision on Notional Fixation for Pre-2016 Armed Forces Pensioner: DESW Order 05.09.2017

September 5, 2017, 1:44 pm

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7th CPC /Pension revision on Notional Fixation for Pre-2016 Armed Forces Pensioner: DESW Order 05.09.2017

No. 17(01)/2017/(02)/D(Pension/Policy)

Government of India

Ministry of Defence

Department of Ex-Servicemen Welfare

New Delhi.

Dated 5th September, 2017

To
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Subject- Implementation of Government’s decision on the recommendations of the 7th Central Pay Commission (CPC) - Revision of pension of pre-1.1. 2016 Defence Forces pensioners! family pensioners etc.

Sir,

The undersigned is directed to say that the Seventh Central Pay Commission (7th CPC), in its Report, recommended two formulations for revision of pension of pre-2016 Armed Forces pensioners. A Resolution No 17(1)/2014/D(Pension/Policy) dated 30.9.2016 was issued by this Ministry indicating the decisions taken by the Government on the various recommendations of the 7th CPC on pensionary matters.

2. Based on the decisions taken by the Government on the recommendations of the 7th CPC, orders for revision of pension in respect of pre-1.1.2016 Armed Forces pensioners/ family pensioners in accordance with second formulation were issued vide this Ministry's letter No 17(01)/2016-D(Pen/Pol) dated 29.10.2016 and modified vide letter No 17(01)/2017(01)/ D(Pen/Pol) dated 4th September 2017 for revision of Pension/ Family pension. It was provided in the letter dated 29.10.2016 that the revised pension/ family pension with effect from 112016 in respect of pre-1.1.2016 Armed Forces pensioners/ family pensioners shall be. determined by multiplying the pension/ family pension as had been drawn on 31.12.2015 by the factor of 2.57.

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3. In accordance with the decisions mentioned in this Ministry's Resolution No 17(1)/2014/D(Pension/Pol) dated 309.2016 and letter No 17(01)/2016-D(Pen/Polz dated 29.10.2016, the feasibility of the first formulation recommended by the 7th CPC has been examined by the Committee headed by Secretary, Department of Pension & Pensioners' Welfare.

4. The aforesaid Committee has submitted its report and the recommendations made by the Committee have been considered by the Government. Accordingly, it has been decided that revised pension/ family pension of all Armed Forces Personnel who retired/ died prior to 112016, shall be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/ pay band and grade pay at which they retired/ died. This will be done by notional pay fixation under each intervening Pay Commission based on the formula for revision of pay. The revised rates of Military Service Pay, Non Practicing Allowance, where applicable, and 'X' Group pay & Classification Allowance for JCO/ORs, if applicable, notified in terms of 7th CPC orders, shall also be added to the amount of pay notionally arrived at under the 7th CPC pay matrix and shall be termed as notional reckonable emolument as on 1.1.2016.

While fixing pay on notional basis, the pay fixation formulae, approved by the Government and other relevant instructions on the subject in force at the relevant time, shall be strictly followed.

Calculation of Pensionary benefits under first formulation

5. Subject to Para 9, the rates of revised pension/ family pension in terms of these orders shall be determined as follows

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5.1 The revised Retiring/ Service/ Special/ Invalid/ Ordinary/ Mustering out Pension, Service element of Disability/ Liberalised Disability/ War lnjury Pension shall be 50% of the notional reckonable emoluments arrived at as per Para 4 above.

5.2 The revised Disability element/Liberalized disability element of Disability/ Liberalized Disability Pension shall be 30% of the notional reckonable emoluments arrived at as per Para 4 above. The revised War lnjury element of War Injury Pension shall be 60°/o and 100% of the notional reckonable emoluments arrived at as per Para 4 above in cases of release and invalided out cases respectively. The rates so determined shall be for 100% disability and shall be reduced pro-rata subject to degree of disability accepted and for the period notified in the PPO.

Note - The aggregate of service element and liberalized disability element shall not be less than 80% of the notional reckonable emoluments.

5.3 Where an Armed Forces personnel was discharged/ retired under the circumstances mentioned in Para 4.1 of this Ministry's letter No 1(2)/97/D(Pen-C) dated 31.1.2001 with disability including cases covered under this Ministry's letter No 16(5)/2008/D(Pen/Policy) dated 29.9.2009 & dated 195.2017 and the disability/war injury had already been accepted as 20% or more, the extent of disability or functional incapacity shall now be determined in the manner prescribed in Para 7.2 of said letter dated 31.1.2001 for the purpose of computing disability/ war injury element with effect from 1.1.2016. Rates for calculation of disability where composite assessment is made due to existence of disability, as well as war injury, shall be determined in terms of provision contained in Para 3(b) of Ministry’s letter No. 16(02)/2015-D(Pen/Pol) dated 8th August 2016.

5.4 The revised enhanced rate and normal rate of Ordinary Family pension shall be 50°/o and 30% respectively, of the notional reckonable emoluments arrived at as per Para 4 above for the applicable period of grant.

5.5 The revised Special Family pension shall be 60% of the notional reckonable emoluments arrived at as per Para 4 above for the applicable period of grant.

5.6 The revised Liberalized Family pension shall be equal to the notional reckonable emoluments arrived at as per Para 4 above for the applicable period of grant.

5.7 For child/children of Armed Forces personnel in receipt of Liberalized Family pension, the revised Liberalized Family pension shall be 60% of the notional reckonable emoluments arrived at as per Para 4 above for the applicable period of grant.

5.8 The revised Dependent Pension (Special) shall be 50% of notional Special Family pension arrived at in terms of provisions as at Para 5.5 above. The Liberalized Dependent Pension (Liberalized) shall be 75% (in case both parents are alive) and 60% (in case of single parent/dependent brother/sister) of notional Liberalized Family pension arrived at in terms of provisions as at Para 5.6 above.

5.9 The revised Second Life award of Special Family pension in case of JCO/OR including NCs(E) shall be 50% of notional Special Family pension arrived at in terms of provisions as at Para 5.5 above. The revised Second Life award of Liberalized Family pension in case of JCO/ORs including NCs(E) shall be 60% of notional Liberalized Family pension arrived at in terms of provisions as at Para 5.6 above.

Note - 1 : The amount of revised pension/family pension arrived at in terms of this para, shall be rounded off to the next higher rupee.

Note - 2 : In cases where the family pension has been divided amongst more than one beneficiary, the revised family pension for beneficiaries all together shall not exceed the applicable rate of family pension indicated above.

6. It has also been decided that higher of the two formulations i.e. the pension/ family pension already revised in accordance with this Ministry's letter No 17(01)/2016-D(Pen/Pol) dated 29.10.2016 and modified vide letter No 17(01)/2017(01)/D(Pen/Policy) dated 4th September 2017 or the revised pension/ family pension as worked out in accordance with Para 5 above, shall be granted to pre-1.1.2016 Armed Forces pensioners as revised pension/ family pension with effect from 1.1.2016. In cases where pension/ family pension being paid with effect from 1.1.2016 in accordance with this Ministry's letter No. 17(01)/2016-D(Pen/Pol) dated 29.10.2016 happens to be more than pension/family pension as worked out in accordance with Para 5 above, the pension/ family pension already being paid shall be treated as revised pension/ family pension with effect from 1.1.2016.

7. Instructions were issued vide this Ministry's letter No. 1(3)/98/D(Pen/ Ser) dated 27.5.1998 for revision of pension/ family pension in respect of Commissioned Officers who retired or died prior to 1.1.1986, by notional fixation of their pay ingthe scale of pay introduced with effect from 1.1.1986. The notional pay so worked out as on 1.1.1986 was treated as average emoluments/ last pay for the purpose of calculation of notional pension/ family pension as on 1.1.1986. The notional pension/ family pension so arrived at was further revised with effect from 1.1.1996 and was paid in accordance with the instructions issued for revision of pension/ family pension in implementation of the recommendations of the 5th CPC. However, in the case of Pre-1.1.1986 JCOs/ORs, no such notional fixation of pay was prescribed and revision of their pension was based on pension tables provided in this Ministry's letter No 1(2)/98/D(Pen/Ser) dated 14.7.1998.

8. Accordingly, for the purpose of calculation of notional pay with effect from 1.1.2016 of those Commissioned Officers who retired or died before 1.1.1986, the pay scale and the notional pay as on 1.1.1986, as arrived at in terms of the instructions issued vide this Ministry's letter No. 1(3)/98/D(Pen/ Ser) dated 27.5.1998, shall be treated as the pay scale and the pay of the concerned Commissioned Officer as on 1.1.1986. In the case of those Commissioned Officers who retired or died on or after 1.1.1986 but before 1.1.2016, including all pre-1.1.2016 JCOs/ORs, the actual pay and the pay scale from which they retired or died would be taken into consideration for the purpose of calculation of the notional pay as on 1.1.2016 in accordance with Para 4 above.

9. The ceiling of minimum and maximum pension from 1.1.2016, prescribed under Para 5.4 of this Ministry's letter No 17(01)/2016-D(Pen/Pol) dated 29.10.2016 and further clarified vide Para 6 of letter No 17(01)/2017(01)/D(Pen/Pol) dated 4th September 2017 shall continue to be applied on the revised pension/ family pension determined under this order.

10. The pension/ family pension as worked out in accordance with provisions of Para 5 and 6 above shall be treated as 'Basic Pension' with effect from 1.1.2016. The revised pension/ family pension includes dearness relief sanctioned from 1.1.2016 and shall qualify for grant of Dearness Relief sanctioned thereafter.

11. The existing instructions regarding regulation of dearness relief to employed/ re-employed pensioners/ family pensioners, as contained in this Ministry's letter No 7(1)/95/D(Pen/Services) dated 28.8.2000 and Department of Pension & Pensioners Welfare OM No 45/73/97-P&PW(G) dated 2.7.1999, as amended from time to time, shall continue to apply.

12. The pension of the pensioners who are drawing monthly pension from the Defence Forces on permanent absorption in Public Sector Undertakings/ Autonomous Bodies shall also be revised in accordance with these orders. However, separate orders will be issued for revision of pension of those pensioners who had earlier drawn one time lump sum terminal benefits on absorption in Public Sector Undertakings etc., and are drawing 43% / 45% restored pension in case of Commissioned Officers and JCOs/ORs respectively as per the instructions issued by this Ministry from time to time.

13. In cases where, on permanent absorption in Public Sector Undertakings/ Autonomous Bodies, the terms of absorption and/ or the rules permit grant of family pension under the orders issued by this Ministry, the family pension being drawn by the family pensioners or already sanctioned in her favour shall also be updated in accordance with these orders.

14. The quantum of age-related pension/family pension available to the old pensioners/ family pensioners shall continue to be as follows:-

Age of pensioner/family pensioner	Additional quantum of pension
From 80 ears to less than 85 years	20% of revised basic pension/ family pension
From 85 years to less than 90 years	30% of revised basic pension /family pension
From 90 years to less than 95 years	40% of revised basic pension /family pension
From 95 years to less than 100 years	50% of revised basic pension /family pension
100 years or more	100% of revised basic pension /family pension

The amount of additional pension shall be shown distinctly in the pension payment order. For example, in case, where a pensioner is more than 80 years of age and his/ her revised pension is Rs10,000 pm, the pension shall be shown as (i) Basic pension Rs.Io,000 and (ii) Additional pension = Rs 2,000 pm. The pension on his/ her attaining the age of 85 years shall be shown as (i) Basic Pension =Rs 10,000 and (ii) additional pension = Rs.3,000 pm. Dearness Relief will be admissible on the additional pension available to the old pensioners also.

Note:- The additional pension/ family pension available to pensioners of 80 years of age and above shall be applicable in the case of disability/ war injury element/ Liberalized Disability element of disability /liberalized Disability/ War Injury Pension also.

15. A few examples of calculation of pension/family pension in the manner prescribed above are given in Annexure-I to this letter.

MISCELLANEOUS INSTRUCTIONS

16. No arrears on account of revision of Pension/ Family pension on notional fixation of pay shall be admissible for the period prior to 1.1.2016. The arrears on account of revision of pension/ family pension in terms of these orders would be admissible with effect from 1.1.2016. For calculation of arrears becoming due on the revision of pension/family pension on the basis of this letter, the arrears of pension and the revised pension/family pension already paid on revision of pension/ family pension in accordance with the instructions contained in this Ministry's letter No 17(O1)/2016-D(Pen/Pol) dated 29.10.2016 shall be adjusted. Any overpayment of pension coming to the notice or under process of recovery shall be adjusted in full by the Pension Disbursing Agencies against arrears becoming due on revision of pension on the basis of these orders. In case of a pensioner to whom the benefit accrues under the provisions of this letter has died/dies before receiving the payment of arrears, the Life Time Arrears of pension (LTA) shall also be paid as per extant orders.

17. No commutation of pension will be admissible on amount of pension accruing as a result of revision of pension under these orders. However, the existing amount of pension, if any, that has been commuted will continue to be deducted from the revised pension while making disbursement till the applicable period of deduction. Notional fixation of pay in terms of these orders will also not affect the entitlement of retirement gratuity already determined and paid with reference to rules in force at the time of discharge/ invalidment/death.

18. It shall be the responsibility of the concerned Record Offices and attached Pay Account Offices in case of JCOs/ ORs of the three Services and,‘PCDA(O) Pune/ AFCAO New Delhi/ Naval Pay Office, Mumbai in case of Commissioned Officers of Army/ Air Force/ Navy to initiate cases for revision of pension/ family pension of pre-1.1.2016 pensioners/ family pensioner with effect from 1.1.2016 in accordance with these orders for issue of revised Pension Payment Order (PPO) for every pensioner/ family pensioner. The Pension Sanctioning Authority would impress upon the concerned Record Office/ PCDA(O) Pune / AFCAO New Delhi / Naval Pay Office, Mumbai for fixation of pay on notional basis based on extant orders and will issue revised Pension Payment Authority at the earliest. Detailed instructions for initiation of revision cases shall be issued by PCDA(P) Allahabad to all concerned immediately after issue of this order. The revised PPO shall be issued by the Pension Sanctioning Authorities directly to concerned Pension Disbursing Authority for effecting prompt payments as a special measure. The remaining copies of PPOs shall be dispatched by PSAs in usual manner.

19. These orders shall apply to all Pre-1.1.2016 Armed Forces pensioners/ family pensioners drawing pension/ family pension under the corresponding Pension Regulations and various Government orders issued from time to time. A pensioner/ family pensioner, who became entitled to pension/ family pension with effect from 1.1.2016 consequent upon retirement/death of Armed Forces personnel on 31.12.2015, would also be covered by these orders. These orders shall, however, do not apply to UK/HKSRA pensioners, Pakistan & Burma Army pensioners and pensioners in receipt of monthly Ex-gratia payments.

20. This issues with the concurrence of Ministry of Defence (Fin/Pension) vide their Part file (1) to (30)(O1)/2016/Fin/Pen dated 14th August 2017.

21. Hindi version will follow.

Yours faithfully

sd/-

(Manoj Sinha)

Under Secretary to the Government of India

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[http://www.desw.gov.in/sites/default/files/2017.09.05%2017(01)2017(02)-D(Pen-Pol)%20Implementation%20of%207th%20CPC%20in%20respect%20of%20Pre%202016%20retirees%20-Revision%20of%20pension.pdf]

Example for Commissioned Officer - 7th CPC Pension Revision - Notional Fixation DESW Order 05.09.2017

September 5, 2017, 1:49 pm

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Example for Commissioned Officer - 7th CPC Pension Revision - Notional Fixation DESW Order 05.09.2017

Annexure-I (contd..)

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EXAMPLES (Commissioned Officers)

(Reference — Para 15 of MoD letter No 17(01)/2017(02)/D(Pen/Policy) dated 5th September 2017)

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S.No	Description	1st Case	2nd Case	3rd Case	4th Case
1	Date of Retirement	26.05.1976	30.04.1988	07.09.1999	31.05.2014
2	Rank	Major	Colonel	Lt. Colonel	Brigadier
3	Qualifying Service	30/06/01	30/02/00	22/02/27	34/11/22
4	Scale of Pay (or Pay Band & G.P) at the time of retirement OR Notional pay scale as on 1.1.1986. for those retired before 1.1.1986.	2300-100-3900- 150-5100 Rank Pay-1000	2300-100- 3900-150- 5100 Rank Pay-1000	13500-400-17100 Rank Pay-1600	37400-67000 Grade Pay- 8900
5	Pay on retirement OR Notional pay as on 1.1.1986 for those retired before 1.1.1986	3400 (Basic Pay) +600 (Rank Pay) 4000	4650 (B. Pay) +1000(R. Pay) 5650	15100 (Basic Pay) +1612 (Rank Pay) 16700	63150 (PIPB) +8900 (Grade Pay) +6000 (MSP) 78050
6	Pension as on 01.01.2016 before revision	23815	36130	32428	39025
7	Family pension as on 01.01.2016 before revision	14289	21678	19457	23415
8	Family pension at enhanced rate as on 01.01.2016 before revision (if applicable)	NA	NA	32428	39025
9	Revised pension by multiplying pre-revised pension by 2.57	61205	92855	83340	100295
10	Revised family pension by multiplying pre-revised family pension by 2.57	36723	55713	50005	60177
11	Revised family pension at enhanced rate by multiplying pre-revised enhanced family pension by 2.57	NA	NA	83340	100295
12	Pay fixed on notional basis on 1.1.1996	11600 (Basic Pay) +1200(Rank Pay) 12800	15100 (B. Pay) +2000(R. Pay") 17100	15100(Basic Pay) +1600(Rank Pay) 16700	-
13	Pay fixed on notional basis on 1.1.2006	23810 (PIPB) +6600 (Gr Pay) +6000(MSP) Rs 36410	40,890 (PIPB) +8700(Gr Pay) +6000(MSP) Rs 55,590	40,890 (PIPB) +8000 (Gr Pay) +6000(MSPI Rs 54.890	63150(PIPB)
14	Pay fixed on notional basis on 1.1.2016	80400 (PIPM) +15500(MSP) 95900	130600 (PIPM) +15500(MSP) Rs 146100	128500 (PIPM) +15500 (MSP) Rs. 144000	187700(PIPM) +15500 (MSP) 203200
15	Revised pension w.e.f. 1.1.2016 as per first formulation.	47950	73050	72000	101600
16	Revised family pension w.e.f. 1.1.2016 as per first formulation.	28770	43830	43200	60960
17	Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation.	NA	NA	72000	101600
18	Revised pension payable (Higher of S.N0.9 and 15)	61205	92855	83340	101600
19	Revised family pension payable (Higher of S.No. 10 and 16)	36723	55713	50005	60960
20	Revised family pension at enhanced rate payable (Higher of S.No. 11 and 17	NA	NA	83340	101600

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7th CPC /Pension revision on Notional Fixation for Pre-2016 Armed Forces Pensioner: DESW Order 05.09.2017. Click on Image to view DESW ORDER

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Example for JCOs ORs - 7th CPC Pension Revision - Notional Fixation DESW Order 05.09.2017

September 5, 2017, 1:52 pm

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Example for JCOs ORs - 7th CPC Pension Revision - Notional Fixation DESW Order 05.09.2017

ANNEXURE- I

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EXAMPLES (JCOs/ORs)

(Reference — Para 15 of MoD letter No 17 (01)/2017(02)/D(Pen/Policy) dated 5th September 2017)

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Sl.No.	Description	1st Case	2nd Case	3rd Case	4th Case
1	Rank	Naik	Hav	Nb Sub	Subedar
2	Group	'C'	'D'	'Y'	'Y'
3	Date of Retirement	31.12.1984 (3td CPC scale)	31.01.1989 (4th CPC scale)	30.06.1999 (5th CPC scale)	30.09.2013 (6th CPC scale)
4	Qualifying Service	20	18.5	26	30
5	Scale of Pay (or Pay Band & G.P) at the time of retirement OR Notional pay scale as on 1.1.1986 for those retired before 1.1.1986.	980-20-1140- 25-1315	1050-25-1300- 30-1450	5620-140-8140	9300-34800 GP- 4600 MSP- 2000
6	Pay on retirement OR Notional pay as on 1.1.1986 for those retired before 1.1.1986	1140+40 (CA)	1175+30 (CA) =1205	6320	15030 (BP) 4600 (GP) 2000 (MSP) 21630
7	Pension as on 01.01.2016 before revision	7170	7693	10405	12690
8	Family pension as on 01.01.2016 before revision	4302	4616	6243	7614
9	Family pension at enhanced rate as on 01.01.2016 before revision (if applicable)	NA	NA	NA	12690
10	Revised pension by multiplying pre-revised pension by 2.57	18427	19772	26741	32614
11	Revised family pension by multiplying pre-revised family pension by 2.57	11057	11864	16045	19568
12	Revised family pension at enhanced rate by multiplying pre-revised enhanced family pension by 2.57	NA	NA	NA	32614
13	Pay fixed on notional basis on 1.1.1996	3500+80 (CA) (3150-70- 4200	3680+80 (CA) (3600-85-4875)	NA	NA
14	Pay fixed on notional basis on 10.10.1997	3510+100(CA) (3425-85- 4700	3700+100(CA) (3600-100-5100)	NA	NA
15	Pay fixed on notional basis on 1.1.2006	6840 (BP) 2400 (GP) 2000 (MSP) + 200 (CA) 11440 (PB-I, GP-2400)	7050 (BP) 2800 (GP) 2000 (MSP) + 200 (CA) 12050 (PB-I, GP-2800)	11760 (BP) 4200 (GP) + 2000 (MSP) 17960 (PB-II, GP- 4200)	NA
16	Pay fixed on notional basis on 1.1.2016	25500 +5200 30700 (Level- 4)	29200 +5200 34400 (Level- 5)	41100 +5200 46300 (Level- 6)	50500 +5200 55700 (Level- 7)
17	Revised pension w.e.f. 1.1.2016 as per first formulation.	15350	17200	23150	27850
18	Revised family pension w.e.f.1.1.2016 as per first formulation.	9200	10320	13890	16710
19	Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation.	NA	NA	NA	27850
20	Revised pension payable (Higher of SI.No. 10 and 17)	18427	19772	26741	32614
21	Revised family pension payable (Higher of SI. No. 11 and 18)	11057	11864	16045	19568
22	Revised family pension at enhanced rate payable (Higher of SI. No. 12 and 19)	NA	NA	NA	32614

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Closure of 39 (thirty nine) Military Farms of Indian Army: CGDA

September 6, 2017, 7:56 pm

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Closure of 39 (thirty nine) Military Farms of Indian Army: CGDA

Office of the CGDA, Ulan Batar Road Palam Delhi Cantt. 110010

No. AT/III/11143/MF/AA/2015-16 

Dated:04.09.2017

To,

Pr.CDA (WC) Chandigarh
Pr.CDA (CC) Lucknow
Pr.CDA (SC) Pune
Pr.CDA, O/ o the Pr.CDA Banglore
C.D.A. (Army) Meerut
C.D.A. Jabalpur
C.D.A. Secunderabad
C.D.A. Patna
C.D.A. Guwahati
Addl.CDA (NC) Jammu

Sub - Closure of 39 (thirty nine) Military Farms of Indian Army.

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Kindly refer to the Ministry of Defence letter No. 7(1)/2016/D(QS)/2017 dated 20.07.2017 regarding above mentioned subject, wherein MoD has conveyed the approval of Cabinet Committee on Security(CSS) for closure of 39 MFs within a period of three months.

2. In this regard, it is requested that all PCsDA/CsDA concerned may direct all LAOS under their jurisdiction to complete the Audit of the Accounts /Ledgers with supporting documents up to closure of the Military Farms within a period of two months. In this connection, necessary instructions may be issued to all

LAOS under their control for Audit of Accounts accordingly in a time bound manner.

3. The balances outstanding in AROBs in respect of Military Farms would need to be updated and cleared on priority, bringing down these balances to the minimum possible immediately.

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This issues with the approval of Addl. CGDA(A&,B).

Encl: As above

ACGDA (Accts & Bud)

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Enhancement of Wage Ceiling under Payment of Wages Act, 1936 to Rs.24,000/- p.m.

September 6, 2017, 8:54 pm

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Enhancement of Wage Ceiling under Payment of Wages Act, 1936 to Rs.24,000/- p.m.

MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 28th August, 2017

S.O. 2806(E).—In exercise of the powers conferred by sub-section (6) of section 1 of the Payment of Wages Act, 1936 ( 4 of 1936), the Central Government, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organization, hereby specifies rupees twenty four thousand per month as the wages under said sub-section (6).

[F. No. S-31018/3/2007-WC]

N. K. SANTOSHI, Dy. Director General

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Sub-section (6) of section 1 -

Definition [(6) This Act applies to wages payable to an employed person in respect of a a wage period if such wages for that wage period do not exceed six thousand five hundred rupees  rupees twenty four thousand per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organisation, the Central Government may, after every five years, by notification in the Official Gazette, specify.] 

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The Code on Wages Bill 2017: Clarification on Enhancement of National Minimum Wages & methodology for calculation of minimum wages

September 6, 2017, 10:57 pm

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The Code on Wages Bill 2017: Clarification on Enhancement of National Minimum Wages & methodology for calculation of minimum wages

The Code on Wages Bill 2017

As part of labour law reforms, the Government has undertaken the exercise of rationalisation of the 38 Labour Acts by framing 4 labour codes viz Code on Wages, Code on Industrial Relations, Code on Social Security and Code on occupational safety, health and working conditions.

1. The Code on Wages Bill 2017 has been introduced in Lok Sabha on 10.08.2017 and it subsumes 4 existing Laws, viz. the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. After the enactment of the Code on Wages, all these four Acts will get repealed. The Codification of the Labour Laws will remove the multiplicity of definitions and authorities leading to ease of compliance without compromising wage security and social security to the workers.

2. At present, the provisions of the Minimum Wages Act and the Payment of Wages Act do not cover substantial number of workers, as the applicability of both these Acts is restricted to the Scheduled Employments / Establishments. However, the new Code on Wages will ensure minimum wages to one and all and timely payment of wages to all employees irrespective of the sector of employment without any wage ceiling.

3. A concept of statutory National Minimum Wage for different geographical areas has been introduced. It will ensure that no State Government fixes the minimum wage below the National Minimum Wages for that particular area as notified by the Central Government.

4. The proposed payment of wages through cheque or digital/ electronic mode would not only promote digitization but also extend wage and social security to the worker. Provision of an Appellate Authority has been made between the Claim Authority and the Judicial Forum which will lead to speedy, cheaper and efficient redressal of grievances and settlement of claims

5. Penalties for different types of violations under this Code have been rationalized with the amount of fines varying as per the gravity of violations and repeat of the offences. Provision of compounding of offences has been made for those which are not punishable by a penalty of imprisonment.

6. Recently, some news reports have been published regarding the fixation of minimum wage as Rs. 18000/- per month by the Central Government. It is clarified that the Central Government has not fixed or mentioned any amount as “national minimum wage” in the Code on Wages Bill 2017. The apprehension that minimum wage of Rs. 18000/- per month has been fixed for all employees is, thus incorrect, false and baseless. The minimum wages will vary from place to place depending upon skill required, arduousness of the work assigned and geographical location.

7. Further, the Code on Wages Bill 2017, in the clause 9 (3), clearly states that the Central Government, before fixing the national minimum wage, may obtain the advice of the Central Advisory Board, having representatives from employers and employees. Therefore the Code provide for a consultative mechanism before determining the national minimum wage.

8. Some reports have also been appearing in the media regarding the revised methodology for calculation of minimum wages by enhancing the units from three to six. It was purely a demand raised by Trade Unions in the recent meeting of the Central Advisory Board on Minimum Wages. However it is clarified that such proposal is not part of the Code on Wages Bill.

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7th CPC Minimum Pay, Fitment formula, Very Good benchmark for MACPS, NPS issues: Meeting with Cabinet Secretary

September 7, 2017, 6:44 pm

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7th CPC Minimum Pay, Fitment formula, Very Good benchmark for MACPS, NPS issues: Brief of the meeting held with the Cabinet Secretary, GOI 

Shiva Gopal Mishra Secretary

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

No.NC/JCM/2017

Dated: September 6, 2017

All Constituents of National Council(JCM)

Dear Comrades!

Sub: Brief of the meeting held today with the Cabinet Secretary, Government of India

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Today I met the Cabinet Secretary(Government of India) and raised the issues pertaining to National Pension System(NPS), Minimum Wage and Fitment Formula, “Very Good” benchmark for MACPS and non-holding of meetings of the National Council(JCM) .

The Cabinet Secretary said that, he is aware of the problems of the Staff Side(JCM) from time to time and particularly to this issue and will definitely try to resolve them.

Particularly on the issue of National Pension System(NPS) he said that, the issue is under active consideration of the Government of India and we are trying to find out some solution to the problems arisen because of the NPS.

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The above is for your information.

With Fraternal Greetings!

Sincerely yours

(Shiva Gopal Mishra)

Secretary (Staff Side)

National Council (JCM)

Source : http://ncjcmstaffside.com

7th CPC : Resolve issues of Central Govt. Employees to avoid mental agony - JCM, No.NC/JCM/2017 Dated: September 5, 2017

Shiva Gopal Mishra Secretary

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

No.NC/JCM/2017

Dated: September 5, 2017 

The Cabinet Secretary,
(Government of India),
Cabinet Secretariat,
Rashtrapati Bhawan,
New Delhi

Dear Sir,

Sub:- Long pending issues of the Central Government Employees

Ref.: My earlier letter dated 30.06.2017

I have discussed the issues creating mental agony in the minds of the Central Government Employees many a times and once again want to draw your kind attention for resolution of many long pending demands of the Central Government Employees.

National Pension System(NPS) has been raised by the Staff Side(JCM) many a times, the committee set up by the Government of India for reviewing NPS has also submitted its report, but we are not aware about the outcome of the same. Staff Side(JCM) has been of the firm view that there must be “Guaranteed Pension” for the employees recruited on or after 01.01.2004, and in case of their death/permanent disablement, their families should get Pension as per Old Pension Scheme.

All the Central Government Employees are anxiously waiting for recommendations of the Government of India for increasing Minimum Wage and improving Fitment Formula and inordinate delay in this regard is creating lot of frustration amongst them.

It is, therefore, requested that, you may please intervene in the above-mentioned issues and the same should be resolved in an amicable manner to avoid mental agony of the Central Government Employees.

With Kind Regards! 

Sincerely yours,

(Shiva Gopal Mishra)

Secretary (Staff Side)

National Council (JCM)

Source : http://ncjcmstaffside.com