SIXTH CENTRAL PAY COMMISSION

Response of All India Customs Preventive Service Federation

11. Increments

11.1 What should be the criteria for determining the rates and frequency of increments in respect of different scales of pay? Should these bear a uniform or varying relationship with the minima and/or maxima of the scales?

Ans. The rates should be progressive at periodic intervals and should match the stagnation at the lower scales. At present the increments in the Group-B & Group-A scales are fixed amounts ranging from Rs.250 to Rs.650 per annum. The rate of increment is pathetically low in real terms, even after considering the percentage increase in DA and HRA along with the amount of increment. A very important point to be taken note of is that the present rate of increment, does not take into consideration the length of service put in by the officer in the cadre i.e. an officer with just one year of service and another with 10 years, is entitled for the same fixed amount of increment. There is a strong case for factoring the length of service while granting increments. This can be done by prescribing increments at a rate of a fixed percentage of the basic pay drawn in the earlier year.

It is therefore suggested that increments can be fixed @ 5% of the Basic Pay drawn in the earlier year. For the sake of convenience in calculation, it may be rounded off to the nearest 100. The pay scales would thus be open ended (OE), with only minimum of the scale prescribed. This would also ensure that there is no stagnation at any point of time, in any of the scales.

12. Revision of pay scales

12.1 Is there any need to revise the pay scales periodically especially when 100% neutralization for inflation is available in form of dearness allowance?

Ans. Yes. The changing economic scenario and job dynamics necessitates periodic revision of pay scales. This is the only mechanism, which can assure retaining and drawing of requisite talents for Administration in the Country. Besides, it is utterly naive to imagine that there is 100% neutralization for inflation in the form of D.A., as the indices used to measure the inflation for this purpose in not all pervasive i.e. Increase in prices of essential needs such as houses, medical services, transportation, education, etc. are not considered. Further, Dearness Allowance is not the sole factor on the basis of which Pay Scales are structured. Hence, Pay Scale needs to be revised every 5 years, as is the case with Banks and PSUs. For this there must be a permanent wage review body, with statutory powers in lines with CAG, CVC, EC, Finance or Planning Commission. In fact, this is one of the recommendations of 5th C.P.C.

12.2 How should pay be fixed in the revised pay scales? Should there be a point-to-point fixation? If not, please suggest a method by which it can be ensured that senior personnel are not placed at a disadvantage vis-a-vis their juniors and due weightage is given for the longer service rendered by the former.

Ans. Every time a pay revision takes place, senior Government Servants as on the date of revision, are denied of the requisite recognition for the service rendered by them in that particular cadre or scale of pay. Their pay is always fixed almost equal to that of juniors in that cadre. This is bound to result in a sense of deprivation amongst the senior officers that can adversely affect their morale and consequently their performance. Therefore, there is an urgent need to put an end to this practice. Point - to - Point fixation is the only viable alternative, which will render equity and justice.

13. Compensatory Allowances

13.1 Is City Compensatory Allowance a sufficient compensation for the problems of a large city? If DA and HRA provide full neutralization, do you think CCA should continue? Is there a need for changing the basis of classification of cities and the rates of CCA? If so, please suggest the revised basis and rates.

Ans. City Compensatory Allowance (CCA), at the present rate, is not at all a sufficient compensation - not only for large cities (metro cities), but even for medium and small cities.

The present rate and formula followed for determining the DA and HRA for Government employees does not provide the required neutralization of rise in prices & rent, in real terms. The cost of living in many a cities and towns have witnessed an upward shift due to boom in software sector or some other industry. Here example of Jamnagar in Gujarat, Gurgaon in Haryana, Ghaziabad in U.P., Bangalore in Karnataka, Hyderabad in Andhra Pradesh, Kochi in Kerala, Pune in Maharashtra, are worth considering.

Hence, CCA cannot and should not be discontinued. At present CCA is based on slab rate. This should also be brought at par with DA & HRA i.e. as a percentage of Basic Pay. Further, there is a need to have a class of super metro city with populace of 1.20 crores or more.

Following rates (as % of Basic Pay) are suggested for C.C.A and H.R.A:

Class of City Population C.C.A. H.R.A.
A1 1.20 Crore or more 20 75
A 50 Lakh or more, but less than 1.2 Crore 15 50
B 20 Lakh or more, but less than 50 Lakh 10 40
C Less than 20 Lakh 5 30

14. Pay and perquisites for Armed Forces

14.1 What should be the basis for determination of pay scales for Armed Forces Personnel? What percentage weightage should be assigned to (i) parity with civil services, (ii) comparison with private sector, (iii) special and hazardous nature of duties, (iv) short career span and (v) restricted rights?

Ans. No suggestions are proffered.

14.2 How should the pay of a soldier, sailor and airman be determined? How should it relate to the minimum wage in Government and the pay of a constable in paramilitary or internal security forces?

Ans. No suggestions are proffered.

15. Abolition of feudalism

15.1 Should all vestiges of feudalism in the country like huge residential bungalows sprawling over several acres, large number of servants, quarters, retinues of personal staff, bungalow peons, use of uniformed personnel as batmen or on unnecessary security or ceremonial duties etc. be abolished? Please make concrete suggestions.

Ans. Yes. These are not only feudal, but also colonial relics deserving guillotine. However, the personnel who would become redundant as a result of this exercise must be absorbed in the Government service. Further, huge land area that will be available can be utilized for constructing residential and other infrastructural facilities like schools, hospitals, etc.

16. Specific proposals

16.1 In what manner can Central Government organizations functioning be improved to make them more professional, citizen-friendly and delivery oriented?

Ans. Here words of Hon'ble President, Sbri A.P.J. Abdul Kalam is appropriate: "One cannot expect a person to be creative and deliver results, if one humiliates or abuses him. The line between, firmness & harshness, strong leadership & bullying and discipline & vindictiveness is very fine. But it has to be drawn".

Therefore, need of the hour is to develop a sense of team spirit for improving effectiveness. In this direction, one effective measure would be to introduce a system of evaluation of superior officers on the feedback received from the junior officials, posted under that officer. Besides, Training in the field of human relations and in specialized field in which the officer is working will go a long way in improving the functioning. Also, pay comparable with Public I Private Sector will boost the morale of the Government Servants that will help in improving the sense of responsibility, accountability and discipline, which will inspire them towards professionalism and delivery orientation.

16.2 Please outline specific proposals, which could result in:
(i) Reduction and redeployment of staff,
(ii) Reduction of paper work,
(iii) Better work environment,
(iv) Economy in expenditure,
(v) Professionalisation of services,
(vi) Reduction in litigation on service matters,
(vii) Better delivery of service by government agencies to their users.

Ans.

(i) Almost all the Departments are already reeling under severe shortage of officers and staff, as a result of the measures adopted till date. Hence, there is no scope for any further reduction or re-deployment.

(ii) The legal requirement will impede any considerable progress in this area. But there should be no hiatus in the thrust for reduction of paper work.

(iii) In order to evolve better work environment, the first and foremost is to improve mutual trust and confidence among all the cadres. Developing a sense of Team Spirit is a sure panacea. Much depends on the feedback from lower rung officials who deal with public. Methods of work evaluation and vigilance actions needs to be transparent and judicious and should not be based on vindictiveness. Towards this, all Service Associations must be involved; both in letter and spirit, in all the policy decisions, so as to render all sections of employees feel responsible for success and / or failure of any mission.

(iv) Here, the exact figures on public expenditure (mentioned below) will validate our contention against any further scope on economizing:

PAY AND ALLOWANCES OF CENTRAL GOVERNMENT

95-96 96-97 97-98 98-99 99-00 00-01 04-05*
As % of Total Expenditure 11.2 10.4 12.3 11.8 11 8.8 7.7
As % of Tax Revenue (Net to Centre) 22.9 21.2 27.9 28.8 25.5 21.0 15.8
Source: Indian Public Finance Statistics (2004-05) *Revised Estimates

From the above it will be seen that there is a steady fall in the Govt. spending on its employees. Besides, according to the 1ih Finance Commission, employees in State Govts. fell from 81 Lakh to 67 Lakh, a reduction of 17%. Similarly, Railways has effected a 17% reduction in its workforce i.e. from 16.9 Lakh to 14 Lakh. Another, pertinent point in this regard is the cost of collection of Income Tax, which at Rs. 0.62 Per Rs.100/-, is among the lowest in World. In U.S.A the same is Rs. 2.00.

Therefore there is not much scope for economizing the expenditure, any further. In any case, ad-hoc experiments by effecting periodic changes in the departmental functions must be dissuaded.

(v) For achieving the goal of a professionalised services, Real time training on all related aspects should be imparted at periodic intervals. Emphasis should be on effective dissemination of knowledge and exchange of information relating to latest developments, amongst all segments. Further, Information Technology Enabled Solutions or e-governance has become inevitable in all Central Government offices. Hence, to ensure a professional orientation, every office should have its own in-house core team of officials, properly qualified & trained, both in software & hardware, to take care of any exigencies.

(vi) Pay Commission and Govt. (especially HRD Ministry, D.G.P.T and the respective Administering authority of each Department) should realize the fact that all services including Group "A' are essential for efficient functioning and accordingly change their approach. There should be no delay on service related matters like promotion, fixation of seniority, etc. and these should be transparent also. Further, disciplinary rules & procedures, steeped in antiquity, are cause for the rise of litigation in service matters. These rules needs to be suitably modified and the time limits should be strictly adhered to.

(vii) Better delivery of service can be assured, by treating all the parties involved as essential partners in progress. Towards this end, the bureaucratic rules that tantamount to red-tapism and the ever suspecting vigilance mechanism must undergo a radical change. Here, the prevailing numerical quota for initiating disciplinary proceedings may be alluded to, as an example.

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