7th Pay Commission Report – failed to impress employees know why?

| December 20, 2015

7th Pay Commission Report – failed to impress employees know why?

On November 19, the 7th Central Pay Commission submitted its report on the salaries, pensions, and benefits for more than 50 lakh Central Government employees.

Within hours, the websites and news media began to give their elaborate interpretations and opinions about the recommendations. Mr. Krishnan, the secretary of Confederation of Central Government Employees & Workers, on his website, gave a scathing review of the report, listing out all the drawbacks and disappointments. This was followed by similar opinions from almost all the other employees associations.

Employees’ expectations versus disappointments

Minimum wages : NCJCM demanded that the minimum wages be raised to Rs.26,000. Reports said earlier that the numbers range from Rs.24,000 to 21,000. But, the Pay Commission had fixed it as Rs.18,000. Criticism about the minimum wages that are going to be enforced for the next ten years is the great disappointment.

House Rent Allowance : House Rent Allowances have been brought down from the current 10, 20 and 30 percent to eight, 16, and 24 percent. NC JCM had asked for an increase to 20, 40, and 60 percent. Popular opinion says that even if the idea of increasing HRA was unacceptable, the commission shouldn’t have to reduce it.

Date of increment: There was disappointment because the report didn’t say anything about adding the date of increments, such as January 1 and July 1.

Date of implementation : NC JCM demanded that the new recommendations be implemented with effect from 01.01.2014, but the commission has prescribed 01.01.2016 as the date of implementation.

Multiplication Factor : The 6th Pay Commission recommended that the Grade Pay be calculated at 40 percent from the higher pay band and a Multiplication Factor of 1.86 be used on it. The 7th Pay Commission had recommended only 2.57 and has completely removed the Grade Pay structure. The NC JCM had insisted that it be fixed at 3.7.

Promotion and Increment : The Pay Matrix table was prepared only with 3 percent increment. Everybody expected in the benefit of promotion, there will be two increments or a 5 percent hike. The 7th Pay Commission instead made no changes to this. The employees are also disappointed that promotions are not likely to bring in a noticeable financial improvement. The Grade Pay hike, which was implemented in the 6th Pay Commission, has now been removed.

MACP Promotion Scheme : Four or five promotions were expected under the much-awaited MACP scheme. But the new report recommends the same 10, 20, and 30 years routine, with stricter guidelines for promotions. This could lead to complications for those who weren’t given any promotions for more than 10 years, to get one through the MACP upgradation.

Allowances and advances : The Pay Commission has recommended the abolishing of about 52 allowances, including the “Family Planning Allowances.” It has also recommended the abolishing of all kinds of advances, including the LTC advance.

And also disappointed in the recommendations of New Pension Scheme, LTC, Transport Allowance, Children Education Allowance, CGEGIS, Fixed Medical Allowance and GDS Issues.

Category: Seventh Pay Commission

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