The Seventh Central Pay Commission (SCPC)

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Government announces Seventh Pay Commission for central employees
PTI | Sep 25, 2013, 12.30 PM IST

NEW DELHI: Ahead of elections, the government on Wednesday announced constitution of the Seventh Pay Commission, which will go into the salaries, allowances and pensions of about 80 lakh of its employees and pensioners.

"Prime Minister Manmohan Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016", finance minister P Chidambaram said in a statement.

The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, comes ahead of the assembly elections in 5 states in November and the general elections next year.

The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.

As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from January 1, 2016, Chidambaram said.

http://timesofindia.indiatimes.com/

 

Ahead of elections, PM gives nod to Seventh Pay Commission
ENS Economic Bureau : New Delhi, Wed Sep 25 2013, 22:34 hrs

Days before the Election Commission announces dates for assembly elections in five states including Delhi, the central government on Wednesday announced the setting up of the Seventh Pay Commission, which promises to lead to a sharp increase in the salaries of nearly 7 million central government employees and pensioners.

The report of the commission is, however, not expected until nearly two years after the Lok Sabha elections that are due before May 2014.

SC to Govt: Form separate Pay Commission for armed forces

"The Prime Minister has approved the constitution of the Seventh Central Pay Commission," said a statement by Finance Minister P Chidambaram.

"The average time taken by a pay commission to submit its recommendations has been about two years. Accordingly, allowing about two years time (from now is necessary) for the Commission to submit its report by January 2016," the ministry said in the release.

Express column: Govt is a growth multiplier

The Sixth Pay Commission was set up in 2006, and gave its report after 18 months in March 2008.

The award of the sixth commission cost the government an additional Rs 26,035 crore in the first year, as per its own estimate. It was one of the main reasons why the Centre missed its fiscal deficit target for 2008-09. For most employees, salaries went up by 60-80 per cent. The World Bank had described the award of the earlier Fifth Pay Commission as the "single largest adverse shock" to Indian public finances.

The release said that the names of the chairperson and members, and the terms of reference of the seventh pay panel, would be decided soon.

Sources said the chairperson was likely to be a member of the judiciary — in accordance with the practice of the last pay panel, which was headed by Justice B N Srikrishna. Finance Secretary R S Gujral, who is due to retire later this year, could be appointed member secretary, the sources said.

The Twelfth Finance Commission had advised the government not to set up a pay panel every 10 years, an advice the Thirteenth Finance Commission reversed. It said that the pay panel awards should be set up in time ensure their reports were implemented prospectively without having to pay out arrears, which dent government finances.

In FY 14, the Centre will pay its civilian employees Rs 1,24,657 crore in wages and allowances. Including the pension bill of Rs 70,726 crore, the total is about 12 per cent of total government expenditure for the year. State governments too adopt the pay commission's award for their employees. Several states are, however, yet to implement the award of the Sixth Pay Commission, saying they do not have the money.

http://www.indianexpress.com/

 

Seventh Pay Commission for central employees announced
PTI | New Delhi | Updated: Sep 25 2013, 19:36 IST

In a sop to its employees ahead of the elections, the government today announced constitution of the Seventh Pay Commission to revise salary and pension for about 80 lakh staff and pensioners.

The recommendations of the new Pay Commission, which will be constituted shortly, will be implemented from January 1, 2016.

"Prime Minister Manmohan Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016", Finance Minister P Chidambaram said in a statement.

The Congress and the employees union hailed the decision of the UPA-II government.

The union, however, demanded that the pay panel's award be implemented with retrospective effect from January 1, 2011.

Commerce and Industry Minister Anand Sharma said: "It is the right of the employees to have Pay Commission ...when the recommendations come, the government will be able to implement (it). You do not do something for which you do not have money available."

The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, comes ahead of the Assembly elections in 5 states including Delhi, Rajasthan and Madhya Pradesh in November and the general elections next year.

The government constitutes Pay Commission almost once in every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.

As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from January 1, 2016, Chidambaram said.

The sixth Pay Commission was implemented from January 1, 2006, the fifth one from January 1, 1996, and the fourth from January 1, 1986.

"Except for 6th Pay Commission, all Pay commissions are set up in 3rd year of a decade....The government should attract best of talents as its employees.

Pay Commissions help in attracting and also retaining best available talents," Congress general secretary in-charge for Communication Ajay Maken commented on the microblogging site Twitter.

He further said, "the NDA rejected the legitimate formation of 6th Pay Commission in 2003. Congress set up the 6th Pay Commission in 2005, now again the 7th CPC in 2013."

Even while welcoming the announcement, President of Confederation of Central Government Employees and Workers, K K N Kutty, said "we have a reservation. It should be implemented with effect from January 1, 2011 as in the case of Central PSUs whose employee pay scales are revised every five years."

During the discussions with the government, Kutty said, the Confederation would press for merger of up to 50 per cent of dearness allowance with the basic pay, which is a prerequisite for setting up a pay commission.

The merger of DA with basic pay helps central government employees as certain allowances are paid as proportion of the basic pay and hence merger results in higher allowances.

Commenting on the decision, ICRA senior economist Aditi Nayar said, "it should be viewed in the light of the recommendation of the 13th Finance Commission that structural shocks like arrears related to Pay Commission awards should be avoided and the award should commence from the day of acceptance."

New pay commission is outcome of election force: Maira

Constitution of the 7th Pay Commission is an "election force", Planning Commission member Arun Maira said today.

"All government employees will want it while others may not... This is a big election force," Maira said on the sidelines of a FICCI organised seminar on India's Regulatory Framework here.

"It is an interesting situation since it is election time," he said when asked about the timing for it.

"You need to get elected otherwise you cannot do what you want to do," he added.

The recommendations of the Commission will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, coming ahead of the assembly elections in five states in November and the general elections next year.

http://www.financialexpress.com/

 

Government announces 7th Pay Commission for central employees

By PTI Published: 25th September 2013 12:03 PM Last Updated: 25th September 2013 02:29 PM

Ahead of elections, the government on Wednesday announced constitution of the Seventh Pay Commission, which will go into the salaries, allowances and pensions of about 80 lakh of its employees and pensioners.

"Prime Minister Manmohan Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016", Finance Minister P Chidambaram said in a statement.

The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, comes ahead of the Assembly elections in 5 states in November and the general elections next year.

The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.

As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from January 1, 2016, Chidambaram said.

The sixth Pay Commission was implemented from January 1, 2006, fifth from January 1, 1996 and fourth from January 1, 1986.

The names of the chairperson and members of the 7th Pay Commission and its terms of reference will be finalised shortly after consultation with major stakeholders, Chidambaram said.

http://newindianexpress.com/

 

Govt sets up Seventh Pay Commission
PTI | 10 hours 31 min ago 

New Delhi: Ahead of elections, the government today announced constitution of the Seventh Pay Commission, which will go into the salaries, allowances and pensions of about 80 lakh of its employees and pensioners.

"Prime Minister Manmohan Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016", Finance Minister P Chidambaram said in a statement.

The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, comes ahead of the Assembly elections in 5 states in November and the general elections next year.

The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification. As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from January 1, 2016, Chidambaram said.

The sixth Pay Commission was implemented from January 1, 2006, fifth from January 1, 1996 and fourth from January 1, 1986 The names of the chairperson and members of the 7th Pay Commission and its terms of reference will be finalised shortly after consultation with major stakeholders, Chidambaram said.

http://www.deccanchronicle.com/

 

Prime Minister of India Approved Constitution of Seventh Central Pay Commission

The Finance Minister P.Chidambaram announced on 25 September 2013 that the Prime Minister of India Manmohan Singh approved the constitution of the Seventh Central Pay Commission. The average time taken by a Pay Commission to submit its recommendations is around 2 years. In context with this, it is expected that the recommendations of 7th CPC will be implemented with effect from 1 January 2016.

The names of the Chairperson as well as the members along with their terms of reference (ToR) will be finalised and announced after consultation with the major stakeholders. Since the year 1947, six pay commissions have been set up from time to time in order to review as well as make recooemndations on the work and pay structure of civil and military divisions of the Government of India.

About the Central Pay Commission

• The first Central Pay Commission was constituted in May 1946 and its report was submitted by 1947 under the Chairmanship of Srinivasa Varadachariar. The first Central Pay Commission was based on the basic idea of living wages to employees.
• The approval of last or the sixth Central Pay Commission was given in July 2006. The commission was established under the Chairmanship of B.N.Srikrishna with the time duration of 18 months.
• The constitution of the Seventh Pay Commission will include salaries, allowances and pensions of around 80 lakh employees as well as pensioners.
• Recommendations of the Commission will provide benefit to around 50 lakh employees of the Central Government, who also include defence and railways. Apart from this, it will also provide benefit to 30 lakh pensioners.
• The Union Government of India constitutes the Pay Commission after almost 10 years time frame in order to revise the pay scales of employees. The recommendations of Pay Commission are always adopted by all the states in India after a few modifications.

http://www.jagranjosh.com/

 

Government to set up first separate pay commission for Indian military

India's armed forces are likely to have their own pay panel for the first time since independence.

This comes as the government prepares to set up the seventh Pay Commission to decide on salary hikes for the 50 lakh central government employees, ahead of state polls and national elections due by May. The pay panel's recommendations are expected to be implemented from January 2016.

All three military chiefs had written to the Defence Minister last year, asking for pay parity with civilian employees. The armed forces have also been demanding the one rank one pension and one rank one pay rule.

They are also pushing for fixing rank pay and fixing pay structure for jawans and junior commissioned officers (JCOs).

In June last year, Defence Minister AK Antony had reportedly written to Prime Minister Manmohan Singh on "growing discontent among the services personnel due to the anomalies in payment and salaries."

Mr Antony had said that service personnel, ex-servicemen and pensioners were "equally agitated" and suggested that corrective action be taken or "things may take a bad turn."

A month later, the PM set up a four-member committee of secretaries, headed by the Cabinet Secretary, to look into the demands. The armed forces had then objected to the absence of military representation on the committee. Later, some of the anomalies were corrected, and the government had promised a separate pay commission for the armed forces.

Government salaries had been substantially hiked under the sixth pay commission headed by Justice BN Srikrishna. The revised pays fixed the salary of the Cabinet Secretary at Rs. 90,000 a month and Secretary at Rs. 80,000 per month, while making Rs. 6,660 as the minimum entry level salary.

http://www.ndtv.com

 

Assocham calls decision on seventh pay commission 'out of turn'
By Deepti Rajan on Wed, 09/25/2013 - 14:45  

The Associated Chamber of Commerce and Industry of India (ASSOCHAM) has called the government's move to set up the seventh pay commission to look at increasing salaries of government employees 'out of turn'.

It warned that such a move would lead to pressure on the state governments and the private sector to increase salaries, leading to further price increases.

"The private sector too will be compelled to hike salaries-leading to overall wage cost to the economy, which in any case is grappling with the slowdown. The move is out of turn at this point of time," said D S Rawat, Secretary General ASSOCHAM.

The central government has about 80 lakh employees and ex-employees, and an estimated 2% of India's population relies on central government salaries and pensions for their livelihood.

Pay commissions are set up once every ten years.

Assocham, which represents the interests of the corporate sector, said the pay hikes would lead to inflation, increase fiscal deficit and be a drain on the government's already stretched resources.

"Since the recommendations of the 7th Pay Commission would be enforced from January 2016, it is just about two years from now that the government will have to bear a huge additional burden. At that point of time, the exchequer will be bearing the full load of the Food Act and the other welfare schemes like NREGA – whose cost is bound to increase. Is it necessary that the governments all the time have to keep fighting the fiscal deficit issue?" the industry lobby asked.

 

 

The Sixth Central Pay Commission

Highlihts

  • SCPC Report Implemented - Government Issues Gazette Notification:
  • Increase in the minimum entry level salary of a government employee to Rs 7,000 against Rs 6,660 recommended by the Commission headed by Justice B N Srikrishna who submitted the report in March this year.
  • The total emoluments of an employee at the lowest level up to Rs 10,000 per month including allowances.
  • Increase in the rate of annual increment from 2.5 per cent to 3 per cent and for achievers in PB-3 to 4 per cent.
  • Three assured promotions, after 10, 20 and 30 years of service, for all employees under the modified Assured Career Progression (ACP) scheme.
  • The hiked salary will be paid to the employees beginning September this year and the arrears in cash in two installments - 40 per cent this fiscal and 60 per cent in 2009-10.
  • The Multiplication factor for fitment in the revised Pay Scale was 1.74 as recommended by the Commission, Government has increased it to 1.86.
  • One DGP with Pay of Rs.80,000/- for each State. Other DGPs and members of CBEC, CBDT will reach the Rs.80,000/- Scale in two years.
  • Jump for Additional Commissioners in Customs and Central Excise and Income Tax. They will be placed in the Pay Band 4 which is 37,400 – 67,000 with increased Grade Pay.
  • Governemnt modifies Pay Band 1, 2 and 4. One new scale HAG+ Rs 75500-80000 carved out of PB-4. Grade Pay at many stages in PB-3 and PB-4 modified.
  • The New Scales and DA will be effective from 01.01.2006 and other allowances from 01.09.2008.
  • Dearness Allowance:
  • The AICPI (IW) will continue to be the index used for calculating DA for Government employees.
  • No merger of dearness allowance with basic pay at any time in future.
  • DA will continue to be sanctioned twice a year as on 1st January and 1st July payable with the salary of March and September, respectively.
  • City Compensatory Allowance (CCA):
  • City Compensatory Allowance abolished.
  • Other Compensatory allowances:
  • Rates of Special Compensatory (Hill Area/Remote Locality), Tribal Area Allowance, Project Allowance and Bad Climate Allowance revisied as follows:
  • Project Allowance: Rs.1,500 p.m. for posts in the grade pay of Rs.5,400 and above; Rs.1,000 p.m. for posts in the grade pay of less than Rs.5,400.
  • The rates of all the above allowances shall automatically increase by 25% whenever the Dearness Allowance payable on the revised pay bands goes up by 50%.
  • Abolition of Special Compensatory Allowance for Gandhinagar and Special Compensatory (Border Area) Allowance.
  • As regards Special (Duty) Allowance for postings to North East Regions, the allowance at the existing rates should be paid to all Central Government employees on their posting on transfer to any North East Region irrespective of whether the transfer is from outside the North East Region or from another area of that region.
  • The condition that the employees have all India transfer liability should also be dispensed with. This will ensure that all employees, irrespective of their group, get the benefit of this allowance on their posting to a new city in North East on transfer.
  • The Special (Duty) Allowance as well as other concessions allowed to the Government employees in North East region to be extended to the Government employees posted in Ladakh.
  • Island Special (Duty) allowance: No change is recommended in respect of this allowance. However, this allowance should, henceforth, also be paid to all Central Government employees on their posting on transfer to any place in these Islands without insisting on an all India transfer liability.
  • Hard Area Allowance to the employees posted in the Nicobar group of Islands to be paid separately along with Island Special (Duty) Allowance. Further, this allowance should also be extended to the Lakshadweep group of islands.
  • Traveling Allowance:
  • No change in the travel entitlement for travel outside India.
  • In case of road travel between places connected by rail, travel by any means of public transport be allowed provided the total fare does not exceed the train fare by the entitled class.
  • In case of places not connected by train, travel by AC bus for all those entitled to travel by AC II Tier and above in train and by Deluxe/Ordinary bus for those who are entitled to travel by First Class/AC III Tier/AC Chair Car/Sleeper Class in train.
  • All mileage points earned by Government employees on tickets purchased for official travel should be utilized by the concerned department for other official travel by their respective officers.
  • The travel entitlements while on tour and transfer to be revised.
  • Daily Allowance
  • The rates of all the components of Daily Allowance shall automatically increase by 25% whenever the Dearness Allowance payable on the revised pay bands goes up by 50%.
  • In case of stay or journey on Government ships, boats etc.or journey to remote places on foot/mules etc. for scientific/data collection purposes in organisations like FSI, Survey of India, GSI etc., daily allowance will be paid at rate equivalent to that provided for reimbursement of food bill. However, in this case the amount will be sanctioned irrespective of the actual expenditure incurred on this account with the approval of the Head of Department/Controlling Officer. For journey on foot, an allowance of Rs.5 per kilometer traveled on foot shall be payable additionally. This rate will also be increased by 25% whenever DA payable on revised pay scales goes up by 50%.
  • LTC & Other Benefits:
  • 3 home town travel and on anywhere in India travel in a block of 4 years. Travel entitlements under LTC same as those on official tour and transfer except no daily allowance be payable for travel on LTC.
  • The facility shall be admissible only in respect of journeys performed in vehicles operated by the Government or any Corporation in the public sector run by the Central or State Government or a local body.
  • Encashment of Earned Leave upto 10 days along with LTC to the extent of total of 60 days be continued.
  • The leave encashed at the time of availing LTC not to be deducted from the maximum amount of Earned Leave encashable at the time of retirement.
  • Consequently, the employees would be eligible to encash 300 days of Earned Leave at the time of their retirement, even though they may have encashed Earned Leave of upto 60 days during their career while availing LTC, whether to their home town or to any place in India.
  • The Railways employees be allowed to avail of this encashment at the time of availing of passes for a maximum of 60 days in the entire career subject to the condition that successive encashment cannot be made before a minimum period of two years has elapsed.
  • Transport Allowance:
  • All the allowances and facilities to be governed by Grade Pay.
  • The existing condition which prohibits grant of Transport Allowance to the employees who have been provided with official accommodation within one Kilometer of the office is removed.
  • Other conditions regulating the grant of this allowance remain unchanged.
  • Physically disabled employees shall continue to draw this allowance at double the normal rates.
  • This will be further subject to the condition that Transport Allowance in the case of physically disabled employees shall, in no case, be less than Rs.1,000 per month plus the applicable rate of dearness allowance.
  • Employees in pay band PB-4 who are entitled to the use of official car for travel between residence and office may be given the option to draw transport allowance at a higher rate of Rs.7,000 p.m. plus dearness allowance provided they give up the use of official car for travel between residence and office.
  • House Rent Allowance:
  • Merger of C Class Cities (having population of 50,000 to 5 lakh) with `Unclassified Towns’ (having population of less than 50,000).
  • The existing population criterion for classifying towns and cities for purposes of HRA is being retained but population in the urban agglomeration should be taken into account for classifying a city for purposes of HRA.
  • HRA in A-1 cities be paid at the rate of 30% of the total of revised pay in the running pay band and grade pay thereon.
  • Erstwhile A, B-1 and B-2 categories are to be merged.
  • Education Allowance:
  • Merger of Children Education Allowance and Reimbursement of Tuition Fee which will henceforth be reimbursement upto the maximum of Rs.1,000 per child per month subject to a maximum of 2 children.
  • Hostel subsidy may be reimbursed upto the maximum limit of Rs.3,000 per month per child. The limits would be automatically raised by 25% every time the Dearness Allowance on the revised pay bands goes up by 50%.
  • Holidays:
  • Commissions recommendations not accepted.
  • Deputation Allowance:
  • The rates of Deputation (Duty) Allowance and Central (Deputation on Tenure) Allowance may continue to be paid at the rate of 5%, 10% and 15% of the aggregate of pay in the pay band and grade pay without any pecuniary limit. This will, however, be subject to the limit that the aggregate of pay in the pay band and Deputation (Duty) Allowance/Central (Deputation on Tenure) Allowance does not exceed Rs.39,200 being the minimum pay in the pay band PB-4.
  • Miscellaneous Allowances
  • Doubling of the rates of Cycle Allowance, Washing Allowance, Cash Handling Allowance, Special Allowance, Night Duty Allowance and Split Duty Allowance.
  • The rates of these allowances will be increased by 25% every time the Dearness Allowance payable on revised pay scales goes up by 50%.
  • Machine Allowance withdrawn.
  • Over-Time Allowance:
  • To be decided later.
  • Advances
  • Interest Free Advances
  • The existing amount of following interest free advances to be doubled:
  • Festival Advance
  • Advance in the event of natural calamity like flood, drought, cyclone, etc.
  • Advance for training in Hindi through Correspondence Course.
  • The rates of these allowances shall be increased by 25% every time dearness allowance on revised pay bands increases by 50%. All other existing conditions in respect of various interest free advances shall be maintained without any change.
  • Interest Bearing Advances
  • No interest should be charged on advances for purchase of warm clothing and bicycle. Like in the case of other interest free advances, the existing rates of advances for purchase of warm clothing and bicycle be doubled.
  • To provide for interest subsidy and to make available various interest bearing advances to Government employees through arrangements with public sector banks.
  • The Government will give an interest subsidy equal to 2 percentage points in rate of interest being charged by the bank to the employee.
  • The interest subsidy for employees with disabilities will be equal to four percentage points in the rate of interest being charged by the bank.
  • Simultaneously, the existing limit of various interest bearing advances be doubled for the purpose of getting the subsidy. This limit should automatically be increased by 25% every time the dearness allowance payable on revised pay bands goes up by 50%.
  • The eligibility for taking the advances should also be removed because the repaying capacity would, in any case, be considered by the concerned bank at the time of processing the loan application.
  • Non-Practicing Allowance (NPA)
  • The Doctors to be paid NPA at the existing rate of 25% of the aggregate of the band pay and grade pay subject to the condition that the Basic Pay + NPA does not exceed Rs.85,000.
  • Risk Allowance:
  • Risk Allowance to continue till 31-03-2009.
  • Uniform related Allowances:
  • Rates of Uniform Allowance for different categories of personnel:
  • CPMFs/CPOs/RPF/IPS: Initial grant Rs.14,000; Renewal grant Rs.3,000; payable after every three years.
  • Uniform allowance for Coast Guard officers: Initial grant Rs.16,000; Renewal grant Rs.5,000; payable after every three years.
  • Existing rates of Kit Maintenance Allowance be doubled for all categories of employees presently in receipt of this allowance. Uniform Allowance for nurses should also be increased to Rs.500 per month.
  • Allowance for all the above categories shall be increased by 25% every time the Dearness Allowance on revised pay bands goes up by 50%.
  • T.A. on Transfer:
  • Transportation of personal effects by road at the rates prescribed for `other places’ should be allowed in respect of places connected by train as well without subjecting it to the extant restriction that these can not exceed 1.25 times of the eligible train fare.