7th Pay Commission: Uncertainty looms large on Central Government Employees

| August 16, 2017

A meeting of the Central Government employees pointed out the huge uncertainty that persists after the 7th Pay Commission recommendations were approved. The meeting of the Standing Committee of the National Council (JCM) was held at New Delhi.

Position about minimum wage sought Secretary (Staff-Side) requested to know the present position on the basic demands made by the Central Government employees about minimum wages, fitment formula, reversion to the old pension scheme and the report of the Committee of Allowances, He recalled that when a notice for strike was given in 2016, the senior Cabinet Ministers in the Central Government had met the staff side representatives and assured a positive decision on the aforesaid demands. Although that strike was deferred on this assurance, the central govt. employees are still waiting. Consequently, it is getting difficult to make the central government employees understand the reasons for delay in fulfilment of the assurances then given by the Senior Cabinet Ministers. Hence Secretary, Staff-Side requested the Chairman to convey to the Cabinet Secretary and Chairman, National Council (JCM) the duty to meet the Government employees in accordance with the JCM Scheme to avoid an atmosphere of confrontation.

Huge uncertainty on allowances On allowances, he informed that there is a lot of uncertainty on whether the allowances would become admissible prospectively or from 01.01.2016 i.e., the date of implementation of 7th Pay Commission. The following points were also raised by Leader JCM (Staff-Side): (a) The assurance given by Senior Ministers on 30th June 2016 on pay commission issues-mainly minimum wage and multiplying factor have not been fulfilled. Only one meeting was held by Addl. Secretary (Expenditure) with the Staff side and thereafter nothing is known with regard to progress made even though 10 months passed. (b) On pay panel’s recommendation for revision of pension on the basis of option the contents of the Committee’s Report are not made available to the JCM (Staff Side). There is need to see that transparency is ensured for preserving healthy industrial relations. (c) On Allowances, the Leader JCM (Staff Side) expressed disappointment as there has been no positive outcome even after lapse of several months. He requested the Chairman that the JCM (Staff Side) demand to revise the Allowances w.e.f. 01/01/2016 should be considered and Staff Side demand be taken to the level of Cabinet Secretary and the Government. (d) Although Ministry of finance Resolution dated 25′ July 2016 stipulates that 14.29% hike in the pay of Running Staff in the Railways be ensured, unfortunately, the same has not been complied with. The said hike has not been ensured. He requested the Chairman to kindly take appropriate initiative on the proposal sent by Ministry of Railways which is pending with the Ministry of finance. He also pointed out that the references made by different ministries to the DoP&T/MoF pursuant to the discussions held by the JCM Constituents with the respective Departments/Ministries are pending. He requested that speedy response be ensured by DoP&T/MoF.

No satisfied with 3 per cent calculation The 7th Pay Commission, in its 900-page report, has mentioned many times that Annual Increment @ 3% of basic Pay to be granted to Central Government employees. But the Staff Association has not satisfied with calculation of increments in 7th CPC and reported that it has not been calculated properly in Pay matrix Evolving a Pay Structure to fit for 35 Lakh central Government Employees with a new format in the name of Pay Matrix is indeed a great wonder. But the assurance of granting of 3% of Pay for Annual Increment between two cells is not maintained at many places in the pay Matrix. First time in the Pay Commission history, the 6th Pay Commission had recommended that 3% of basic pay to be given as Annual Increment for CG staffs. As well as an innovative approach, also was adopted to calculate the Annual Increment.

Examples Example for 100 to 110, Rounding off next ten was calculated as 100 up to 100.90 and from 100.90 onwards it was rounded off to 110. Due to this method of calculation, 99% of Cases of Govt Servants were ensured that Minimum 3% of Basic pay was granted as Annual Increment. There are 540 Cells in the pay matrix recommended by 7th Pay Commission. In which many cells are lesser that 3% of Basic pay. At the same time, it can not be denied that some cells are having more than 3% of Basic pay

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