PRESS RELEASE - CABINET DECISON TAKEN ON 03 MAY 2017 ON THE IMPLEMENTAITON OF 7 CPC FOR SERVING DEFENCE PERSONNEL
Modifications in the 7th CPC recommendations on pay and pensionary benefits approved by the Cabinet on 3rd May, 2017
(FOR LATEST ORDERS (ISSUED MAY-17) & TABLES DO SCROLL DOWN)
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation. Earlier, on 29th June, 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of ₹84,933 crore for 2016-17 (including arrears for 2 months of 2015-16).
The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be ₹1,76,071 crore. Some of the important decisions of the Cabinet are mentioned below:
1. Revision of pension of pre – 2016 pensioners and family pensioners.
The Cabinet approved modifications in the recommendations of the 7th CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet. The modified formulation of pension revision approved by the Cabinet will entail an additional benefit to the pensioners and an additional expenditure of approximately ₹5031 crore for 2016-17 over and above the expenditure already incurred in revision of pension as per the second formulation based on fitment factor. It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.
While approving the implementation of the 7th CPC recommendations on 29th June, 2016, the Cabinet had approved the changed method of pension revision recommended by the 7th CPC for pre-2016 pensioners, comprising of two alternative formulations, subject to the feasibility of the first formulation which was to be examined by the Committee.
In terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as per the second formulation multiplying existing pension by a fitment factor of 2.57, though the pensioners were to be given the option of choosing the more beneficial of the two formulations as per the 7th CPC recommendations.
In order to provide the more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner. The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases. The Committee reached its findings based on an analysis of hundreds of live pension cases. The modified formulation will be beneficial to more pensioners than the first formulation recommended by the 7th CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies.
2. Disability Pension for Defence Pensioners
The Cabinet also approved the retention of percentage-based regime of disability pension implemented post 6th CPC, which the 7th CPC had recommended to be replaced by a slab-based system.
The issue of disability pension was referred to the National Anomaly Committee by the Ministry of Defence on account of the representation received from the Defence Forces to retain the slab-based system, as it would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount of disability pension for future retirees when compared to percentage- based disability pension.
The decision which will benefit existing and future Defence pensioners would entail an additional expenditure of approximately ₹130 crore per annum.
3. Changes in Pay Structure and Revision of the three Pay Matrices:
The Cabinet, while approving the 7th CPC recommendations for their implementation on 29th June, had made two modifications in the Defence Pay Matrix as under:
(i) Index of Rationalisation (IOR) of Level 13A (Brigadier) may be increased from 2.57 to 2.67.
(ii) Additional 3 stages in Levels 12A (Lt. Col.), 3 stages in Level 13 (Colonel) and 2 stages in Level 13A (Brigadier) may be added.
The Cabinet has now approved further modifications in the pay structure and the three Pay Matrices, i.e. Civil, Defence and Military Nursing Service (MNS). The modifications are listed below:
(i) Defence Pay Matrix has been extended to 40 stages similar to the Civil Pay Matrix: The 7th CPC had recommended a compact Pay Matrix for Defence Forces personnel keeping in view the number of levels, age and retirement profiles of the service personnel. Ministry of Defence raised the issue that the compact nature of the Defence Pay Matrix may lead to stagnation for JCOs in Defence Forces and proposed that the Defence Pay Matrix be extended to 40 stages. The Cabinet
decision to extend the Defence Pay Matrix will benefit the JCOs who can continue in service without facing any stagnation till their retirement age of 57 years.
(ii) IOR for Levels 12 A (Lt. Col. and equivalent) and 13 (Colonel and equivalent) in the Defence Pay Matrix and Level 13 (Director and equivalent) in the Civil Pay Matrix has been increased from 2.57 to 2.67: Variable IOR ranging from 2.57 to 2.81 has been applied by the 7th CPC to arrive at Minimum Pay in each Level on the premise that with enhancement of Levels from Pay Band 1 to 2, 2 to 3 and onwards, the role, responsibility and accountability increases at each step in the hierarchy. This principle has not been applied in respect of Levels 12A (Lt. Col. and
equivalent), 13 (Colonel and equivalent) and 13A (Brigadier and equivalent) of Defence Pay Matrix and Level 13 (Director and equivalent) of the Civil Pay Matrix on the ground that there was a disproportionate increase in entry pay at the level pertaining to GP 8700 in the 6th CPC regime. The IOR for Level 13A (Brigadier and equivalent) in the Defence Pay Matrix has already been revised upwards with the approval of the Cabinet earlier. In view of the request from Ministry of Defence for raising the IOR for Levels 12 A and 13 of the Defence Pay Matrix and requests from others, the IOR for these levels has been revised upwards to ensure uniformity of approach in determining the IOR.
(iii) To give effect to the decisions to extend the Defence Pay Matrix and to enhance the IORs, the three Pay Matrices – Civil, Defence and MNS – have also been revised. While doing so, two calculation errors noticed in the MNS Pay Matrix have also been rectified.
(iv) To ensure against reduction in pay, benefit of pay protection in the form of Personal Pay was earlier extended to officers when posted on deputation under Central Staffing Scheme (CSS) with the approval of Cabinet. The benefit will also be available to officers coming on Central Deputation on posts not covered under the CSS.
******************** **************************
MAY 2017 - LATEST ORDERS ISSUED FOR FIXATION OF PAY UNDER 7TH CPC AS HAVE BEEN ISSUED ARE PLACED IN SEPARATE POSTS IN THIS SITE :- PLEASE OPEN THE FOLLOWING BY CLICKING ON THEM:-
1. 7th CPC IMPLEMENTATION MAY 2017 (HOW TO FIX)
2. 7th CPC - CHOOSING ON OPTION FOR FIXN - SIMPLE
3. 7th CPC - PENSIONERS GAIN OR NO GAIN
*****************************************************
MoD ORDERS FOR PENSION AS PER 7 CPC ISSUED ON 29 OCT 2016.
1. The orders from MoD are out which are executive orders for the Banks to pay to the pensioners without any circular from PCDA(P) Para 16.1 of the letter as linked below refers. The PCDA Circular No 570 has also been issued by CGDA to banks to make the payments.
2. Entitlement of Pension and related instructions for pre-2016 retirees are based on 7th Pay Commission orders as approved earlier. The Ministry of Defence has now issued the orders (CLICK HERE FOR OPENING THE MoD LETTER) for payment of pensions implementing the recommendations of the 7th Central Pay Commission.
3. There is no change to formula of Basic OROP pension multiplied by 2.57 as is already available on our web site http://signals-parivaar.blogspot.in . The summary is placed below in respect of officers who completed 33 yrs of actual service.
4.The rates of disability element have not been reduced for now and shall continue to be paid as per existing amounts under the existing percentage based formula till the issue is resolved by the Anomalies Committee.
5. Enhancement of old age pension for disability and war injury pensioners has been negated. The strangest part of this entry is the fact that the Defence Services had indeed asked for this, and the commission actually rejected it and the Ministry of Defence has accepted that rejection. A path of least resistance.
PCDA CIRCULAR NO 570 - OPEN WEB PAGE TO DOWNLOAD THE CIRCULAR - http://www.pcdapension.nic.in/7cpc/Circular-570.pdf
NOTE :- The chart above is given for offrs who have completed 33 yrs of actual service, for others with less actual service, calculation the 7 CPC pension as also the arrears is very simple as explained under by a simple equation of class IV maths :-
Suppose your Basic OROP pen in Dec 2015 was Rs 30000/- which you already know.
* Your 7CPC Pen in Jan 2016 will be = 30000 X 2.57 = 77100/-
* DA of 2% wef Jul 16 hence pension Jul Onwards = 78642/-
* Arrs of 7 CPC Jan to June = 77100 - 30000 x 2.25 = 9600 per month for 6 months ie 57600/-
* Arrs from Jul to Nov 16 = 78642 - 30000 x 2.25 = 11142 per month for 5 months = 55710/-
* HENCE TOTAL ARRs 7 CPC = 57600 + 55710 = 1,13,310/- CHEERS
Happy Diwali to all.
Brig Narinder Dhand,
http://signals-parivaar.blogspot.in
WE THANK OUR VETERAN AIR VICE MARSHAL RP MISHRA FOR HIS INPUTS AS UNDER:-
*************************** EARLIER POSTS ***************************
THE GAZETTE NOTIFICATION
ANALYSIS
Analysis of the Gazette Notification on 7 CPC for def officers.
in the Gazette Notification there is nothing new. It has only published what has been approved by the cabinet. Just a formality. The implementation will take time, may be a year. However the Govt has planned to pay you immediately your basic pension into 2.57 /2.67/2.72 times. They will pay you arrears after they are able to finally fix your pension as per the matrix.
The govt orders rightly say that your 6CPC emoluments as authorised wef 01 Jan 2006 will be multiplied by the factor and paid .
Here there is a big doubt which i hope is not exploited by the dear babus, The OROP whether it be considered as 6 CPC authorisation or not . If considered well and good otherwise, as usual they will only pay us 6CPC X 2.57/2.67/2.72 as per Rank or the OROP which ever is more. I have reasons to apprehend this move. Let us wait for the orders of the Ministry of Defence applicable for the Armed forces to know what is in store for us.
let me upload the matrix as may be amended by the Gazette Notification
The MSP will be in addition to these salaries. Here again there is a doubt rather apprehension. under the colmns the rows show the salary with 3% yearly increments year wise. Will they take the number of increments or the number of years of service in that particular rank. If you recall the increments under 5th CPC were made two yearly from one yearly. Like I was a Brig for 7 complete years will they take my pension 50% of 171700 against 8th stage or just 3 increments ie 50% of when I reached the maximum scale for stagnation increment. 152500/-. Nothing is known and there is no clarity as of date. Hence we need to see what will be in store for us.
The Matrix duly amended as per fresh calculations .
MATRIX - DEFENCE AS AMENDED
The MSP will be in addition.
NOTE : It will take considerable time for this matrix to be fully implemented considering and fixing the number of years of service/increments in the last rank.
*****************************************************************
** 7 CPC ORIGINAL REPORTS REPORT
1. REPORT - EXTRACTS DEFENCE SERVICES - CLICK TO READ.
2. REPORT - FULL 900 PAGES. - CLICK TO READ.
3. EXECUTIVE SUMMARY - 7 CPC -- CLICK HERE TO REFER
4. CIVILIAN PAY STRUCTURE AND PENSION - CLICK HERE
**********************************************
29-Jun-2016. Cabinet approves the implementation of 7th CPOC as recommended by the Secretaries group.
Jun 30 2016 : The Times of India (Delhi)
Military upset as govt stays cold on major demands
New Delhi:
TIMES NEWS NETWORK
The 13-lakh strong armed forces were left largely disappointed on Wednesday with the Cabinet decision to implement the recommendations of the 7th Central Pay Commission without resolving the “core anomalies“ persistently raised by them.
FLASH -- MoD ORDERS ON PENSION FOR PRE 2006 PENSIONERS HAVE BEEN ISSUED CLICK TO READ MORE Modifications in the 7th CPC recommendations on pay and pensionary benefits approved by the Cabinet on 3rd May, 2017
(FOR LATEST ORDERS (ISSUED MAY-17) & TABLES DO SCROLL DOWN)
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation. Earlier, on 29th June, 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of ₹84,933 crore for 2016-17 (including arrears for 2 months of 2015-16).
The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be ₹1,76,071 crore. Some of the important decisions of the Cabinet are mentioned below:
1. Revision of pension of pre – 2016 pensioners and family pensioners.
The Cabinet approved modifications in the recommendations of the 7th CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet. The modified formulation of pension revision approved by the Cabinet will entail an additional benefit to the pensioners and an additional expenditure of approximately ₹5031 crore for 2016-17 over and above the expenditure already incurred in revision of pension as per the second formulation based on fitment factor. It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.
While approving the implementation of the 7th CPC recommendations on 29th June, 2016, the Cabinet had approved the changed method of pension revision recommended by the 7th CPC for pre-2016 pensioners, comprising of two alternative formulations, subject to the feasibility of the first formulation which was to be examined by the Committee.
In terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as per the second formulation multiplying existing pension by a fitment factor of 2.57, though the pensioners were to be given the option of choosing the more beneficial of the two formulations as per the 7th CPC recommendations.
In order to provide the more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner. The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases. The Committee reached its findings based on an analysis of hundreds of live pension cases. The modified formulation will be beneficial to more pensioners than the first formulation recommended by the 7th CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies.
2. Disability Pension for Defence Pensioners
The Cabinet also approved the retention of percentage-based regime of disability pension implemented post 6th CPC, which the 7th CPC had recommended to be replaced by a slab-based system.
The issue of disability pension was referred to the National Anomaly Committee by the Ministry of Defence on account of the representation received from the Defence Forces to retain the slab-based system, as it would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount of disability pension for future retirees when compared to percentage- based disability pension.
The decision which will benefit existing and future Defence pensioners would entail an additional expenditure of approximately ₹130 crore per annum.
3. Changes in Pay Structure and Revision of the three Pay Matrices:
The Cabinet, while approving the 7th CPC recommendations for their implementation on 29th June, had made two modifications in the Defence Pay Matrix as under:
(i) Index of Rationalisation (IOR) of Level 13A (Brigadier) may be increased from 2.57 to 2.67.
(ii) Additional 3 stages in Levels 12A (Lt. Col.), 3 stages in Level 13 (Colonel) and 2 stages in Level 13A (Brigadier) may be added.
The Cabinet has now approved further modifications in the pay structure and the three Pay Matrices, i.e. Civil, Defence and Military Nursing Service (MNS). The modifications are listed below:
(i) Defence Pay Matrix has been extended to 40 stages similar to the Civil Pay Matrix: The 7th CPC had recommended a compact Pay Matrix for Defence Forces personnel keeping in view the number of levels, age and retirement profiles of the service personnel. Ministry of Defence raised the issue that the compact nature of the Defence Pay Matrix may lead to stagnation for JCOs in Defence Forces and proposed that the Defence Pay Matrix be extended to 40 stages. The Cabinet
decision to extend the Defence Pay Matrix will benefit the JCOs who can continue in service without facing any stagnation till their retirement age of 57 years.
(ii) IOR for Levels 12 A (Lt. Col. and equivalent) and 13 (Colonel and equivalent) in the Defence Pay Matrix and Level 13 (Director and equivalent) in the Civil Pay Matrix has been increased from 2.57 to 2.67: Variable IOR ranging from 2.57 to 2.81 has been applied by the 7th CPC to arrive at Minimum Pay in each Level on the premise that with enhancement of Levels from Pay Band 1 to 2, 2 to 3 and onwards, the role, responsibility and accountability increases at each step in the hierarchy. This principle has not been applied in respect of Levels 12A (Lt. Col. and
equivalent), 13 (Colonel and equivalent) and 13A (Brigadier and equivalent) of Defence Pay Matrix and Level 13 (Director and equivalent) of the Civil Pay Matrix on the ground that there was a disproportionate increase in entry pay at the level pertaining to GP 8700 in the 6th CPC regime. The IOR for Level 13A (Brigadier and equivalent) in the Defence Pay Matrix has already been revised upwards with the approval of the Cabinet earlier. In view of the request from Ministry of Defence for raising the IOR for Levels 12 A and 13 of the Defence Pay Matrix and requests from others, the IOR for these levels has been revised upwards to ensure uniformity of approach in determining the IOR.
(iii) To give effect to the decisions to extend the Defence Pay Matrix and to enhance the IORs, the three Pay Matrices – Civil, Defence and MNS – have also been revised. While doing so, two calculation errors noticed in the MNS Pay Matrix have also been rectified.
(iv) To ensure against reduction in pay, benefit of pay protection in the form of Personal Pay was earlier extended to officers when posted on deputation under Central Staffing Scheme (CSS) with the approval of Cabinet. The benefit will also be available to officers coming on Central Deputation on posts not covered under the CSS.
******************** **************************
MAY 2017 - LATEST ORDERS ISSUED FOR FIXATION OF PAY UNDER 7TH CPC AS HAVE BEEN ISSUED ARE PLACED IN SEPARATE POSTS IN THIS SITE :- PLEASE OPEN THE FOLLOWING BY CLICKING ON THEM:-
1. 7th CPC IMPLEMENTATION MAY 2017 (HOW TO FIX)
2. 7th CPC - CHOOSING ON OPTION FOR FIXN - SIMPLE
3. 7th CPC - PENSIONERS GAIN OR NO GAIN
MoD ORDERS FOR PENSION AS PER 7 CPC ISSUED ON 29 OCT 2016.
1. The orders from MoD are out which are executive orders for the Banks to pay to the pensioners without any circular from PCDA(P) Para 16.1 of the letter as linked below refers. The PCDA Circular No 570 has also been issued by CGDA to banks to make the payments.
2. Entitlement of Pension and related instructions for pre-2016 retirees are based on 7th Pay Commission orders as approved earlier. The Ministry of Defence has now issued the orders (CLICK HERE FOR OPENING THE MoD LETTER) for payment of pensions implementing the recommendations of the 7th Central Pay Commission.
3. There is no change to formula of Basic OROP pension multiplied by 2.57 as is already available on our web site http://signals-parivaar.blogspot.in . The summary is placed below in respect of officers who completed 33 yrs of actual service.
4.The rates of disability element have not been reduced for now and shall continue to be paid as per existing amounts under the existing percentage based formula till the issue is resolved by the Anomalies Committee.
5. Enhancement of old age pension for disability and war injury pensioners has been negated. The strangest part of this entry is the fact that the Defence Services had indeed asked for this, and the commission actually rejected it and the Ministry of Defence has accepted that rejection. A path of least resistance.
PCDA CIRCULAR NO 570 - OPEN WEB PAGE TO DOWNLOAD THE CIRCULAR - http://www.pcdapension.nic.in/7cpc/Circular-570.pdf
NOTE :- The chart above is given for offrs who have completed 33 yrs of actual service, for others with less actual service, calculation the 7 CPC pension as also the arrears is very simple as explained under by a simple equation of class IV maths :-
Suppose your Basic OROP pen in Dec 2015 was Rs 30000/- which you already know.
* Your 7CPC Pen in Jan 2016 will be = 30000 X 2.57 = 77100/-
* DA of 2% wef Jul 16 hence pension Jul Onwards = 78642/-
* Arrs of 7 CPC Jan to June = 77100 - 30000 x 2.25 = 9600 per month for 6 months ie 57600/-
* Arrs from Jul to Nov 16 = 78642 - 30000 x 2.25 = 11142 per month for 5 months = 55710/-
* HENCE TOTAL ARRs 7 CPC = 57600 + 55710 = 1,13,310/- CHEERS
Happy Diwali to all.
Brig Narinder Dhand,
http://signals-parivaar.blogspot.in
WE THANK OUR VETERAN AIR VICE MARSHAL RP MISHRA FOR HIS INPUTS AS UNDER:-
-----Original Message-----
From: Ram Prakash Mishra
Sent: Sunday, 30 October, 2016 6:16 PM
To: nkd616@gmail.com
Subject: Re: 7 CPC PENSION DEF PERS
Dear Brigadier Dhand, a simple formula for calculating arrears up to Oct
16 is OROP pension X 3.4056. For up to Nov 16, arrears would be OROP
pension X 3.777.
Regards
Veteran AVM RP Mishra
*************************** EARLIER POSTS ***************************
THE GAZETTE NOTIFICATION
ANALYSISAnalysis of the Gazette Notification on 7 CPC for def officers.
in the Gazette Notification there is nothing new. It has only published what has been approved by the cabinet. Just a formality. The implementation will take time, may be a year. However the Govt has planned to pay you immediately your basic pension into 2.57 /2.67/2.72 times. They will pay you arrears after they are able to finally fix your pension as per the matrix.
The govt orders rightly say that your 6CPC emoluments as authorised wef 01 Jan 2006 will be multiplied by the factor and paid .
Here there is a big doubt which i hope is not exploited by the dear babus, The OROP whether it be considered as 6 CPC authorisation or not . If considered well and good otherwise, as usual they will only pay us 6CPC X 2.57/2.67/2.72 as per Rank or the OROP which ever is more. I have reasons to apprehend this move. Let us wait for the orders of the Ministry of Defence applicable for the Armed forces to know what is in store for us.
let me upload the matrix as may be amended by the Gazette Notification
The MSP will be in addition to these salaries. Here again there is a doubt rather apprehension. under the colmns the rows show the salary with 3% yearly increments year wise. Will they take the number of increments or the number of years of service in that particular rank. If you recall the increments under 5th CPC were made two yearly from one yearly. Like I was a Brig for 7 complete years will they take my pension 50% of 171700 against 8th stage or just 3 increments ie 50% of when I reached the maximum scale for stagnation increment. 152500/-. Nothing is known and there is no clarity as of date. Hence we need to see what will be in store for us.
The Matrix duly amended as per fresh calculations .
MATRIX - DEFENCE AS AMENDED
The MSP will be in addition.
NOTE : It will take considerable time for this matrix to be fully implemented considering and fixing the number of years of service/increments in the last rank.
*****************************************************************
** 7 CPC ORIGINAL REPORTS REPORT
1. REPORT - EXTRACTS DEFENCE SERVICES - CLICK TO READ.
2. REPORT - FULL 900 PAGES. - CLICK TO READ.
3. EXECUTIVE SUMMARY - 7 CPC -- CLICK HERE TO REFER
4. CIVILIAN PAY STRUCTURE AND PENSION - CLICK HERE
**********************************************
29-Jun-2016. Cabinet approves the implementation of 7th CPOC as recommended by the Secretaries group.
Jun 30 2016 : The Times of India (Delhi)
Military upset as govt stays cold on major demands
New Delhi:
TIMES NEWS NETWORK
The 13-lakh strong armed forces were left largely disappointed on Wednesday with the Cabinet decision to implement the recommendations of the 7th Central Pay Commission without resolving the “core anomalies“ persistently raised by them.
Senior officers said while the “fine-print“ was yet to be studied, it seemed that their longstanding concerns over their eroding “status, parity and equ ivalence“ as compared to their civilian counterparts had not been addressed again. “Our experience has been that the anomalies created by each successive CPC to our detriment are referred to committees, which never resolve them, till the next CPC. The cycle seems to be the same this time,“ said an officer.
The Centre has this time drawn up separate matrices for drawn up separate matrices for civilians, defence personnel and military nursing service.It said “further improvements“ had been approved in the defence matrix by enhancing the index of rationalisation for Level 13A (Brigadier), and providing for additional stages in Level 12A (Lt-Col), 13 (Col) and 13A (Brigadier), in order to bring parity with their combined armed police forces (CAPF) counterparts at the maximum of the respective levels. The 7th CPC has downgraded them to the level of CAPFs, they said.
RSS-affiliated union threatens strike
RSS-affiliate Bharatiya Maz door Sangh on Wednesday rejected the pay hike announced by the NDA regime and threatened a nation-wide strike on July 8. It said that the Centre had “disappointed“ employees and it may lead to unrest. TNN
The Centre has this time drawn up separate matrices for drawn up separate matrices for civilians, defence personnel and military nursing service.It said “further improvements“ had been approved in the defence matrix by enhancing the index of rationalisation for Level 13A (Brigadier), and providing for additional stages in Level 12A (Lt-Col), 13 (Col) and 13A (Brigadier), in order to bring parity with their combined armed police forces (CAPF) counterparts at the maximum of the respective levels. The 7th CPC has downgraded them to the level of CAPFs, they said.
RSS-affiliated union threatens strike
RSS-affiliate Bharatiya Maz door Sangh on Wednesday rejected the pay hike announced by the NDA regime and threatened a nation-wide strike on July 8. It said that the Centre had “disappointed“ employees and it may lead to unrest. TNN
Provisions in brief as approved:-
7. Gratuity doubled from 10 Lakh to 20 Lakh.
READ DETAILED PRESS REPORT.
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. It will come into effect from 01.01.2016.
In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC. However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.
The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year.
The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.
Highlights of 7th CPC recommendations:
1.The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.
2.All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.
3.The minimum pay has been increased from Rs. 7000 to 18000 p.m. Starting salary of a newly recruited employee at lowest level will now be Rs. 18000 whereas for a freshly recruited Class I officer, it will be Rs. 56100. This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.
4.For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.
5.Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.
6.The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.
7.Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :
1.Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
2.A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
3.Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
4.Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
5.Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.
8.The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.
9.The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.
10.The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.
11.The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.
12.The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.
13.Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.
14.As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.
GO TO HOME PAGE
***********************************************************
** READ MORE AND PREVIOUS NEWS -- CLICK HERE
** PLEASE OPEN THE PREVIOUS POST - TO READ THE REPORT AND TABLES CLICK HERE
2. 7th Pay Commission Recommendations may be revised upwards by Committee of Secretaries appointed by Govt.
Cabinet Secretary P K Sinha who is heading the Empowered Committee or Secretaries group is likely to hand over a report on the revised pay structures of 7th pay commission recommendations to Finance Minister Arun Jaitley by the end of next month.
Finance Minister Arun Jaitley said government had requisite fund to implement 7th pay commission award. Cabinet
Secretary Sinha will finally make his appearance before the the Empowered Committee or Secretaries group on June 11 to make a proposal on the recommendations of 7th Pay Commission before cabinet nod.
Committee’s decisions on 7th Pay Commission and recommendation is expected to be submitted by June . The same will be placed before the Cabinet after the finance ministry’s review. We don’t think it will take more time for Finance Minister Arun Jaitley’s consideration and the new pay structures will be implemented from July after cabinet nod,” said a top official from the Finance Ministry who did not wish to be named.
The 7th Pay Commission headed by Justice A K Mathur submitted the report on November 19. It had proposed the highest salary at Rs 250,000 and the lowest at Rs 18,000. The commission also recommended 14.27 per cent increase in basic pay, 23.55% overall increase in salary, allowances and pensions.
The increase in allowances has been recommended to the extent of 63% while pension has been proposed to be raised by 24%. Finance Minister Jaitley is likely to agree with the Secretaries group. “I think it should not be touched again,” the official said. Once the new structure is implemented, salaries of around 48 lakh central government employees and 52 lakh pensioners will rise by 30 percent. The Finance Minister already said the 7th pay commission award would not make the commodity prices to go up.
The central government employees and pensioners will also spend more money on a variety of goods after receiving the 7th Commission award with arrears from January 2016. “This means higher consumption similar to what happened in the past. But the previous two Pay Commission awards came with a lag of two years. So the arrears were large.
This time, it will not be so,” says Pronab Sen, former Chief Statistician, government of India and now Country Director, International Growth Centre, a think tank based at LSE, run in partnership with University of Oxford.
The official also agrees with Sen and said there was no possibility of any impact of the report on the market at this stage of implementation as there were no impacts when the Pay Commission had first submitted the report. The government formed a 13 member secretary-level Empowered Committee or Secretaries group headed by Sinha in January to review the report of the 7th Pay Commission before cabinet nod. The 7th pay commission was set up by the UPA government in February 2014. It submitted the report after around 22 months. After getting the 7th pay commission report, the finance minister Jaitley while introducing the Seventh Pay Commission report on November 19, already said that the final decisions on the Seventh Pay Commission report took five and a half months including the process of Secretaries group. Finance Minister also said, government had requisite fund to implement it.
The secretary group is likely to propose pay structure of minimum at Rs 21,000 and the maximum at Rs 2,70,000 Accordingly, the Secretaries group is likely to reach the conclusion to propose 30 percent basic pay raise instead of 14.27 per cent, which was recommended by 7th Pay Commission.
They are also mulling for doubling of existing rates of such allowances and advances, which has been recommended for abolition by the 7th Pay Commission, sources said.
**************************************************************
1. Separate Pay Matrices for Civilians, Defence and MNS.
2. Fitment Multiple of 2.57. Min Pay of Rs 18000. Three separate matrix for Lt Col(12A) , Cols(13) & Brigs (13A). Brig index improved to 2.67 instead of 2.57
3. Annual Increment at the rate of 3% of basic pay. Increment payable once in a
year either on 01 Jan / July.
4. No mention of NFU.
5. MSP. - NCsE - 3000. OR - 5200. JCOs - 10800. Officers upto Brig - 15500.
6. Pension. Existing pension to be multiplied by the index (2.57 to start with. Another Committee set up to study feasibility of the second option wherein the increments will get included. Current
retirees will draw pension at 50% of last drawn pay. (Continued Click Below)
8. Allces. Status Quo till such time another Committee under Finance secretary studies on rationalization of allces since pay commission proposals on abolition of many allowances have upset the Central Govt employees.
9. Parity
between Def Forces and CAPF.brought in for pay scales. Def Forces view it as deliberate downgradation of the Armed Forces.
10. Anomalies Group set up by the government to look into other
issues as brought out by employees / organizations.
11. Arrears wef 01 Jan 2016 will be payable within current FY.
13. Advances No interest bearing advances to be ceased except for Motor Car
and Motor Cycle. House Building Adv enhanced to 25 lakh..Computer adv also to
continue. All other interest free advances abolished except for
medical,transfer,LTC,tour etc.
14. Ex Gratia Grant enhanced in the range of 25-45 lakh.
15. Cost to Government including arrears is 84933 crores...without
arrears is 72800 crores.
READ DETAILED PRESS REPORT.
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. It will come into effect from 01.01.2016.
In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC. However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.
The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year.
The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.
Highlights of 7th CPC recommendations:
1.The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.
2.All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.
3.The minimum pay has been increased from Rs. 7000 to 18000 p.m. Starting salary of a newly recruited employee at lowest level will now be Rs. 18000 whereas for a freshly recruited Class I officer, it will be Rs. 56100. This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.
4.For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.
5.Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.
6.The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.
7.Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :
1.Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
2.A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
3.Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
4.Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
5.Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.
8.The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.
9.The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.
10.The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.
11.The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.
12.The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.
13.Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.
14.As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.
GO TO HOME PAGE
***********************************************************
Posted: 18 Jun 2016 04:59 AM PDT
New Delhi: It’s good news for central government employees eagerly waiting for the implementation of 7th Pay Commission.
The implementation of 7th Pay Commission appears to be a matter of a few days now. As per Dainik Jagran report, the Cabinet Secretary met the PMO officials on Wednesday and apprised them about the secretaries panel’s recommendations on the salary and allowances hike recommended for central government employees.
The secretaries panel reviewing the 7th pay commission’s recommendations have submitted its report to the Finance Ministry. The Finance Ministry will prepare a note and present it before the Cabinet in the next 15 days.
The secretaries panel reviewing the 7th pay commission’s recommendations have submitted its report to the Finance Ministry. The Finance Ministry will prepare a note and present it before the Cabinet in the next 15 days.
With the threat of strike by central government employees looming large, the Cabinet is expected to take a prompt decision on the recommendations resulting in notification.
The salary hikes recommended are expected to apply from July.
Read at: Zee News
** READ MORE AND PREVIOUS NEWS -- CLICK HERE
** PLEASE OPEN THE PREVIOUS POST - TO READ THE REPORT AND TABLES CLICK HERE
Cabinet Secretary P K Sinha who is heading the Empowered Committee or Secretaries group is likely to hand over a report on the revised pay structures of 7th pay commission recommendations to Finance Minister Arun Jaitley by the end of next month.
Finance Minister Arun Jaitley said government had requisite fund to implement 7th pay commission award. Cabinet
Secretary Sinha will finally make his appearance before the the Empowered Committee or Secretaries group on June 11 to make a proposal on the recommendations of 7th Pay Commission before cabinet nod.
Committee’s decisions on 7th Pay Commission and recommendation is expected to be submitted by June . The same will be placed before the Cabinet after the finance ministry’s review. We don’t think it will take more time for Finance Minister Arun Jaitley’s consideration and the new pay structures will be implemented from July after cabinet nod,” said a top official from the Finance Ministry who did not wish to be named.
The 7th Pay Commission headed by Justice A K Mathur submitted the report on November 19. It had proposed the highest salary at Rs 250,000 and the lowest at Rs 18,000. The commission also recommended 14.27 per cent increase in basic pay, 23.55% overall increase in salary, allowances and pensions.
The increase in allowances has been recommended to the extent of 63% while pension has been proposed to be raised by 24%. Finance Minister Jaitley is likely to agree with the Secretaries group. “I think it should not be touched again,” the official said. Once the new structure is implemented, salaries of around 48 lakh central government employees and 52 lakh pensioners will rise by 30 percent. The Finance Minister already said the 7th pay commission award would not make the commodity prices to go up.
The central government employees and pensioners will also spend more money on a variety of goods after receiving the 7th Commission award with arrears from January 2016. “This means higher consumption similar to what happened in the past. But the previous two Pay Commission awards came with a lag of two years. So the arrears were large.
This time, it will not be so,” says Pronab Sen, former Chief Statistician, government of India and now Country Director, International Growth Centre, a think tank based at LSE, run in partnership with University of Oxford.
The official also agrees with Sen and said there was no possibility of any impact of the report on the market at this stage of implementation as there were no impacts when the Pay Commission had first submitted the report. The government formed a 13 member secretary-level Empowered Committee or Secretaries group headed by Sinha in January to review the report of the 7th Pay Commission before cabinet nod. The 7th pay commission was set up by the UPA government in February 2014. It submitted the report after around 22 months. After getting the 7th pay commission report, the finance minister Jaitley while introducing the Seventh Pay Commission report on November 19, already said that the final decisions on the Seventh Pay Commission report took five and a half months including the process of Secretaries group. Finance Minister also said, government had requisite fund to implement it.
The secretary group is likely to propose pay structure of minimum at Rs 21,000 and the maximum at Rs 2,70,000 Accordingly, the Secretaries group is likely to reach the conclusion to propose 30 percent basic pay raise instead of 14.27 per cent, which was recommended by 7th Pay Commission.
They are also mulling for doubling of existing rates of such allowances and advances, which has been recommended for abolition by the 7th Pay Commission, sources said.
**************************************************************
7 CPC - As most of the Veterans ae aware the three Services have decided not to implement the 7 CPC award till anomalies are rectified by the Govt.
7 CPC - EXPECTED ARREARS (DEF) AND FIXATION.
On issue of the MOD resolution the PCDA circular will follow to all the Banks to pay us the revised pension based on the Def Matrix place in this post by taking into acct the basic pension as on 31 Dec 2015. Since the OROP pension has been our basic on that day, speculations in some quarters are set to rest that we may not get 7 CPC benefit. While the final fitment and fixation of the pay & pension based on your length of service in the last rank, and related fitment factor will take time the Govt has decided to immediately fix the 7 CPC enhancement for all personnel with 2.57 irrespective of their fitment factors of 2.67 or 2.72,
With this, our expectations can be calculated by primary class maths without tears using normal calculator in your mobile without any computer tools. We have derived here
Arithmetical Multiplication Factors (AMF) as usual for all our earlier posts. Follow the example below using your own basic salary or pension:-
(a) Note your basic pen / pay as on 31 Dec 2015 = say Rs 36130 (Cols 33 Yrs).
(b) Your 7CPC Basic pension - AMF = 2.57 hence 36130 X 2.57 = Rs 92854/-
(c) Difference per month - AMF = 0.32 Hence 36130 X 0.32 = Rs 11562/-
(d) Arrears Jan to Jun - AMF = 1.92 Hence 36130 X1.92 = Rs 69370/-
(e) Arrears from Jul to Oct 16 - AMF = 1.48 Hence 36130 X 1.48 = Rs 53672/-
Total Arrears Add (d) & (e) above = 69370 + 53672 = 123038/- (Plus Minus 50 only)
Well friends that's what is now pl shout for your grand child to get the calculator and sit with you,
These are rough calculations of expected arrears, we will bring out further details with exact amount of arrears once the final fixation orders with relevant enhancement and fixation is announced .
FOR COMPUTER SAVVY - EXCEL TOOL MADE BY OUR MEMBER FOR AUTO CALCULATIONS - CLICK HERE
FAMILY PENSION - CERTAIN ASPECTS WE MUST KNOW :-
We must know few things about these family pensions so that the family pensioners (widow) can get clarifications about their entitlements and ;arrears..
Firstly family pensioners derive their pension form their deceased husbands pay or pension. For JCOs & OR the following need to be considered:-
(a) Rank : Sepoy to Sub Maj.
(b) Qulaifying Service : No of years and months.
(c) Group : X or Y. Diploma holders are in X group and get Rs 1400 as X group pay.
(d) Date of death of husband and his age at the time of death :
(e) Age of family pensioner (she gets 20% addditional pension plus DR if she is 80 Years old)
For Officers' Family Pensioners, you need to know :-
(a) Rank.
(b) Length of service.
(c) Date of death of husband and age of husband at the time of death.
(d) Age of Family Pensioner (to get additional old age pension)
Last Pay Drawn (LPD). This is the sum of pay in pay band, Grade pay and Military Service Pay (MSP) of soldier or Ex-Serviceman.
Pension to an Ex-Serviceman. 50 % of Last Pay Drawn (Sepoy to Lt Gen (HAG+)
Ordinary Family Pension (OFP). Granted to wife of deceased serving soldier whose death is not attributable to Military service or wife of deceased Ex-Serviceman in receipt of pension (like you and me). She gets 60% of pension of her husband or 30% of his Last Pay Drawn.
Enhanced Rate of (OFP). This is same as her husband's pension. Granted to the wife of Ex-Serviceman for period of 7 years from date of death of her husband or 67 years of age and whichever is earlier. This is to help her bring up her children. After the period of E - OFP is over, she gets 60% of her husband's pension. My wife does not get any Enhanced OFP as I am already 68 years old even if I die today. She gets only OFP which is 60 % of my pension in 7th CPC.
Special Family Pension (SFP). If a soldier dies while performing military duties his wife gets 60% of Last Pay Drawn as SFP.
Liberalised Family Pension (LFP). If a Soldier dies in war or war like operations the wife gets LFP which is 100% of his Last Pay Drawn.
-----&&&-----
MOD RESOLUTION - 7 CPC - HIGH LIGHTS
BASIC PAY AS ON 31 DEC 2015 TO BE MULTIPLIED BY 2.57 AND MSP OF 15500 ADDED TO ARRIVE AT THE PAY OF A SERVING OFFICER. THE PENSION OBVIOUSLY WILL BE 50% OF THAT. ARREARS TO BE PAID WEF 01 JAN 2016 DURING THE CURRENT YEAR.
MSP WILL BE COUNTED ONLY FOR DEARNESS ALLOWANCE AND PENSION
PAY MATRIX - DULY UPDATED
The entire text of the MOD Resolution is given below
(TO BE PUBLISHED IN PART-I SECTION -3 OF THE GAZETTE OF INDIA (EXTRA.ORDINARY)
GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
New Delhi, the 5th September, 2016
RESOLUTION
No. 1(6)/2016/D (Pay/Services)
1.
The Seventh Central Pay Commission CCPC) was set up by the Government of India vide Ministry of Finance (Department of Expenditure) Resolution No. 1/ 1/2013-E.III(A) dated 28th February, 2014. The Commission submitted its report on 19th November, 2015. The report covered among other things, matters relating to structure of emoluments, allowances and conditions of service of Armed Forces personnel. Government has given ca:-eful consideration to the recommendations of the Commission relating to these 
matters in respect of Officers of the Armed Forces and have decided that the 
r:ecoomendations of the Commission on the aforementioned matters in respect of these categories of Defence personnel shall be accepted as follows. Some of the major points in respect of Defence Personnel (Officers) are as mentioned below:-
(i) Implementation of the revised pay structure will be w.e.f 01.01.2016;
(ii)
Pay related Matter; (Its given Above)
a)
The existing system of Pay Band and Grade Pay has been replaced with separate Pay Matrices for both Defence and Military Nursing Services personnel.
b) Fixation of pay of each employee in the new Pay Matrix as on oi.01.2016 would be done by multiplying his/her basic pay by a factor of 2.57.
Note-1 With regard to fix. ation of pay in the new Pay Matrix as on 01.01.2016 the existing pay (Pay in Pay Band plus Grade Pay) in the pre revised structure as on 31.12.2015 shall be multiplied by a factor of 2..57 . The fig so arrived at iw to be located in the level Corresonding to employee’s Grade Pay in the Pay Matrix. If a cell identical with the fig so arrived at is available
in the appropriate Level, that Cell shall be the revised pay; otherwise the next higher cell in that Level shall be the revised pay of the employee.
Note-2 After fixation of pay in the appropriate Level as specified in Note-1above, the subsequent increments shallbe at the immediate next Cell in that Level.
c) General recommendations on pay recommended by the Commission have been accepted with the following exceptions in Defence Pay Matrix, namely:
i. The index of Rationalisation of Level 13A (Brigadier) in Defence Pay Matrix may be revised upward from 2.57 to 2.67.
u. Additional 3 stages in Levels 12A (Lt. Col), 3 stages in Level 13 (Colonel) and 2 stages in Level 13A (Brigadier) may be added appropriately in the Defence Pay Matrix.
(iii)
Increase in Military Service Pay (MSP) of Officers Rank from Rs. 6000/- to Rs. 15500/- p.m. and for Military Nursing Service (MNS) Officers from Rs 4200/- to Rs 10800/- p.m. MSP would be counted only for Dearness Allowance (DA) and Pension purposes;
(iv) There will be two dates for grant of increment viz. 1st January and 1st July of every year, instead of existing date of 1st July. However, an employee will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion or grant of financial up-gradation;
(v)
Recommendations on Allowances (except Dearness Allowance) would be referred to a Committee comprising Finance Secretary & Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. The Committee would submit its report within a period of 4 months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances would continue to be paid at existing rates in existing pay structure, as if the pay had not been revised w.e.f. 01.01.2016 i.e status quo would be maintained;
(vi)..Arrears of Pay would be paid during the current financial year;
(vii) Recommendations not relating to pay and allowances and other administrative issues specific to department/ cadres/ posts would be examined separately as per the Transaction of Business Rules/ Allocation of Business Rules.
2. Other instructions on Pay Fixation and increment not specifically covered in these instructions will be as in the Government of India, Ministry of Finance (Department of Expenditure) Resolution No. 1-2/2016-IC dated 25th July, 2016.
3. The decisions taken by the Government accordingly on various recommeridations of the Commission in respect of Officers of Armed Forces are indicated in the statement
at Annexure-I to this Resolution. New Pay Matrix for Defence Service officers is at Annexure-II and for MNS Officers is at Annexure-III. ;.
(V.Anandar Rajan)
Joint Secretary to the Government of India
(TO BE PUBLISHED IN PART-I SECTION -3 OF THE GAZETTE OF INDIA (EXTRA.ORDINARY)
GOVERNMENT OF INDIAMINISTRY OF DEFENCE
New Delhi, the 5th September, 2016
RESOLUTIONNo. 1(6)/2016/D (Pay/Services)1.
The Seventh Central Pay Commission CCPC) was set up by the Government of India vide Ministry of Finance (Department of Expenditure) Resolution No. 1/ 1/2013-E.III(A) dated 28th February, 2014. The Commission submitted its report on 19th November, 2015. The report covered among other things, matters relating to structure of emoluments, allowances and conditions of service of Armed Forces personnel. Government has given ca:-eful consideration to the recommendations of the Commission relating to these matters in respect of Officers of the Armed Forces and have decided that the r:ecoomendations of the Commission on the aforementioned matters in respect of these categories of Defence personnel shall be accepted as follows. Some of the major points in respect of Defence Personnel (Officers) are as mentioned below:-(i) Implementation of the revised pay structure will be w.e.f 01.01.2016;
(ii)
Pay related Matter; (Its given Above)a)
The existing system of Pay Band and Grade Pay has been replaced with separate Pay Matrices for both Defence and Military Nursing Services personnel.b) Fixation of pay of each employee in the new Pay Matrix as on oi.01.2016 would be done by multiplying his/her basic pay by a factor of 2.57.
Note-1 With regard to fix. ation of pay in the new Pay Matrix as on 01.01.2016 the existing pay (Pay in Pay Band plus Grade Pay) in the pre revised structure as on 31.12.2015 shall be multiplied by a factor of 2..57 . The fig so arrived at iw to be located in the level Corresonding to employee’s Grade Pay in the Pay Matrix. If a cell identical with the fig so arrived at is available
in the appropriate Level, that Cell shall be the revised pay; otherwise the next higher cell in that Level shall be the revised pay of the employee.
Note-2 After fixation of pay in the appropriate Level as specified in Note-1above, the subsequent increments shallbe at the immediate next Cell in that Level.
c) General recommendations on pay recommended by the Commission have been accepted with the following exceptions in Defence Pay Matrix, namely:
i. The index of Rationalisation of Level 13A (Brigadier) in Defence Pay Matrix may be revised upward from 2.57 to 2.67.
u. Additional 3 stages in Levels 12A (Lt. Col), 3 stages in Level 13 (Colonel) and 2 stages in Level 13A (Brigadier) may be added appropriately in the Defence Pay Matrix.(iii)
Increase in Military Service Pay (MSP) of Officers Rank from Rs. 6000/- to Rs. 15500/- p.m. and for Military Nursing Service (MNS) Officers from Rs 4200/- to Rs 10800/- p.m. MSP would be counted only for Dearness Allowance (DA) and Pension purposes;(iv) There will be two dates for grant of increment viz. 1st January and 1st July of every year, instead of existing date of 1st July. However, an employee will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion or grant of financial up-gradation;
(v)
Recommendations on Allowances (except Dearness Allowance) would be referred to a Committee comprising Finance Secretary & Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. The Committee would submit its report within a period of 4 months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances would continue to be paid at existing rates in existing pay structure, as if the pay had not been revised w.e.f. 01.01.2016 i.e status quo would be maintained;(vi)..Arrears of Pay would be paid during the current financial year;
(vii) Recommendations not relating to pay and allowances and other administrative issues specific to department/ cadres/ posts would be examined separately as per the Transaction of Business Rules/ Allocation of Business Rules.
2. Other instructions on Pay Fixation and increment not specifically covered in these instructions will be as in the Government of India, Ministry of Finance (Department of Expenditure) Resolution No. 1-2/2016-IC dated 25th July, 2016.
3. The decisions taken by the Government accordingly on various recommeridations of the Commission in respect of Officers of Armed Forces are indicated in the statement
at Annexure-I to this Resolution. New Pay Matrix for Defence Service officers is at Annexure-II and for MNS Officers is at Annexure-III. ;.
(V.Anandar Rajan)
Joint Secretary to the Government of India
THE GAZETTE NOTIFICATION (01 sep 2016)
ANALYSIS
Analysis of the Gazette Notification on 7 CPC for def officers.
in the Gazette Notification there is nothing new. It has only published what has been approved by the cabinet. Just a formality. The implementation will take time, may be a year. However the Govt has planned to pay you immediately your basic pension into 2.57 /2.67/2.72 times. They will pay you arrears after they are able to finally fix your pension as per the matrix.
The govt orders rightly say that your 6CPC emoluments as authorised wef 01 Jan 2006 will be multiplied by the factor and paid .
Here there is a big doubt which i hope is not exploited by the dear babus, The OROP whether it be considered as 6 CPC authorisation or not . If considered well and good otherwise, as usual they will only pay us 6CPC X 2.57/2.67/2.72 as per Rank or the OROP which ever is more. I have reasons to apprehend this move. Let us wait for the orders of the Ministry of Defence applicable for the Armed forces to know what is in store for us.
let me upload the matrix as may be amended by the Gazette Notification
The MSP will be in addition to these salaries. Here again there is a doubt rather apprehension. under the colmns the rows show the salary with 3% yearly increments year wise. Will they take the number of increments or the number of years of service in that particular rank. If you recall the increments under 5th CPC were made two yearly from one yearly. Like I was a Brig for 7 complete years will they take my pension 50% of 171700 against 8th stage or just 3 increments ie 50% of when I reached the maximum scale for stagnation increment. 152500/-. Nothing is known and there is no clarity as of date. Hence we need to see what will be in store for us.
The Matrix duly amended as per fresh calculations .
MATRIX - DEFENCE AS AMENDED - PB-4 Extract
The MSP will be in addition.
NOTE : It will take considerable time for this matrix to be fully implemented considering and fixing the number of years of service/increments in the last rank.
*****************************************************************
EARLIER POSTS
*******************************
** 7 CPC ORIGINAL REPORTS
1. REPORT - EXTRACTS DEFENCE SERVICES - CLICK TO READ.
2. REPORT - FULL 900 PAGES. - CLICK TO READ.
3. EXECUTIVE SUMMARY - 7 CPC -- CLICK HERE TO REFER
4. CIVILIAN PAY STRUCTURE AND PENSION - CLICK HERE
**********************************************
29-Jun-2016. Cabinet approves the implementation of 7th CPOC as recommended by the Secretaries group.
Jun 30 2016 : The Times of India (Delhi)
Military upset as govt stays cold on major demands
New Delhi:
TIMES NEWS NETWORK
The 13-lakh strong armed forces were left largely disappointed on Wednesday with the Cabinet decision to implement the recommendations of the 7th Central Pay Commission without resolving the “core anomalies“ persistently raised by them.
ANALYSISAnalysis of the Gazette Notification on 7 CPC for def officers.
in the Gazette Notification there is nothing new. It has only published what has been approved by the cabinet. Just a formality. The implementation will take time, may be a year. However the Govt has planned to pay you immediately your basic pension into 2.57 /2.67/2.72 times. They will pay you arrears after they are able to finally fix your pension as per the matrix.
The govt orders rightly say that your 6CPC emoluments as authorised wef 01 Jan 2006 will be multiplied by the factor and paid .
Here there is a big doubt which i hope is not exploited by the dear babus, The OROP whether it be considered as 6 CPC authorisation or not . If considered well and good otherwise, as usual they will only pay us 6CPC X 2.57/2.67/2.72 as per Rank or the OROP which ever is more. I have reasons to apprehend this move. Let us wait for the orders of the Ministry of Defence applicable for the Armed forces to know what is in store for us.
let me upload the matrix as may be amended by the Gazette Notification
The MSP will be in addition to these salaries. Here again there is a doubt rather apprehension. under the colmns the rows show the salary with 3% yearly increments year wise. Will they take the number of increments or the number of years of service in that particular rank. If you recall the increments under 5th CPC were made two yearly from one yearly. Like I was a Brig for 7 complete years will they take my pension 50% of 171700 against 8th stage or just 3 increments ie 50% of when I reached the maximum scale for stagnation increment. 152500/-. Nothing is known and there is no clarity as of date. Hence we need to see what will be in store for us.
The Matrix duly amended as per fresh calculations .
MATRIX - DEFENCE AS AMENDED - PB-4 Extract
The MSP will be in addition.
NOTE : It will take considerable time for this matrix to be fully implemented considering and fixing the number of years of service/increments in the last rank.
*****************************************************************
EARLIER POSTS
*******************************
** 7 CPC ORIGINAL REPORTS
1. REPORT - EXTRACTS DEFENCE SERVICES - CLICK TO READ.
2. REPORT - FULL 900 PAGES. - CLICK TO READ.
3. EXECUTIVE SUMMARY - 7 CPC -- CLICK HERE TO REFER
4. CIVILIAN PAY STRUCTURE AND PENSION - CLICK HERE
**********************************************
29-Jun-2016. Cabinet approves the implementation of 7th CPOC as recommended by the Secretaries group.
Jun 30 2016 : The Times of India (Delhi)
Military upset as govt stays cold on major demands
New Delhi:
TIMES NEWS NETWORK
The 13-lakh strong armed forces were left largely disappointed on Wednesday with the Cabinet decision to implement the recommendations of the 7th Central Pay Commission without resolving the “core anomalies“ persistently raised by them.
Senior officers said while the “fine-print“ was yet to be studied, it seemed that their longstanding concerns over their eroding “status, parity and equ ivalence“ as compared to their civilian counterparts had not been addressed again. “Our experience has been that the anomalies created by each successive CPC to our detriment are referred to committees, which never resolve them, till the next CPC. The cycle seems to be the same this time,“ said an officer.
The Centre has this time drawn up separate matrices for drawn up separate matrices for civilians, defence personnel and military nursing service.It said “further improvements“ had been approved in the defence matrix by enhancing the index of rationalisation for Level 13A (Brigadier), and providing for additional stages in Level 12A (Lt-Col), 13 (Col) and 13A (Brigadier), in order to bring parity with their combined armed police forces (CAPF) counterparts at the maximum of the respective levels. The 7th CPC has downgraded them to the level of CAPFs, they said.
RSS-affiliated union threatens strike
RSS-affiliate Bharatiya Maz door Sangh on Wednesday rejected the pay hike announced by the NDA regime and threatened a nation-wide strike on July 8. It said that the Centre had “disappointed“ employees and it may lead to unrest. TNN
The Centre has this time drawn up separate matrices for drawn up separate matrices for civilians, defence personnel and military nursing service.It said “further improvements“ had been approved in the defence matrix by enhancing the index of rationalisation for Level 13A (Brigadier), and providing for additional stages in Level 12A (Lt-Col), 13 (Col) and 13A (Brigadier), in order to bring parity with their combined armed police forces (CAPF) counterparts at the maximum of the respective levels. The 7th CPC has downgraded them to the level of CAPFs, they said.
RSS-affiliated union threatens strike
RSS-affiliate Bharatiya Maz door Sangh on Wednesday rejected the pay hike announced by the NDA regime and threatened a nation-wide strike on July 8. It said that the Centre had “disappointed“ employees and it may lead to unrest. TNN
Provisions in brief as approved:-
7. Gratuity doubled from 10 Lakh to 20 Lakh.
READ DETAILED PRESS REPORT.
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. It will come into effect from 01.01.2016.
In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC. However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.
The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year.
The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.
Highlights of 7th CPC recommendations:
1.The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.
2.All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.
3.The minimum pay has been increased from Rs. 7000 to 18000 p.m. Starting salary of a newly recruited employee at lowest level will now be Rs. 18000 whereas for a freshly recruited Class I officer, it will be Rs. 56100. This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.
4.For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.
5.Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.
6.The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.
7.Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :
1.Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
2.A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
3.Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
4.Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
5.Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.
8.The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.
9.The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.
10.The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.
11.The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.
12.The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.
13.Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.
14.As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.
GO TO HOME PAGE
***********************************************************
** PLEASE OPEN THE PREVIOUS POST - TO READ THE REPORT AND TABLES CLICK HERE
2. 7th Pay Commission Recommendations may be revised upwards by Committee of Secretaries appointed by Govt.
Cabinet Secretary P K Sinha who is heading the Empowered Committee or Secretaries group is likely to hand over a report on the revised pay structures of 7th pay commission recommendations to Finance Minister Arun Jaitley by the end of next month.
Finance Minister Arun Jaitley said government had requisite fund to implement 7th pay commission award. Cabinet
Secretary Sinha will finally make his appearance before the the Empowered Committee or Secretaries group on June 11 to make a proposal on the recommendations of 7th Pay Commission before cabinet nod.
Committee’s decisions on 7th Pay Commission and recommendation is expected to be submitted by June . The same will be placed before the Cabinet after the finance ministry’s review. We don’t think it will take more time for Finance Minister Arun Jaitley’s consideration and the new pay structures will be implemented from July after cabinet nod,” said a top official from the Finance Ministry who did not wish to be named.
The 7th Pay Commission headed by Justice A K Mathur submitted the report on November 19. It had proposed the highest salary at Rs 250,000 and the lowest at Rs 18,000. The commission also recommended 14.27 per cent increase in basic pay, 23.55% overall increase in salary, allowances and pensions.
The increase in allowances has been recommended to the extent of 63% while pension has been proposed to be raised by 24%. Finance Minister Jaitley is likely to agree with the Secretaries group. “I think it should not be touched again,” the official said. Once the new structure is implemented, salaries of around 48 lakh central government employees and 52 lakh pensioners will rise by 30 percent. The Finance Minister already said the 7th pay commission award would not make the commodity prices to go up.
The central government employees and pensioners will also spend more money on a variety of goods after receiving the 7th Commission award with arrears from January 2016. “This means higher consumption similar to what happened in the past. But the previous two Pay Commission awards came with a lag of two years. So the arrears were large.
This time, it will not be so,” says Pronab Sen, former Chief Statistician, government of India and now Country Director, International Growth Centre, a think tank based at LSE, run in partnership with University of Oxford.
The official also agrees with Sen and said there was no possibility of any impact of the report on the market at this stage of implementation as there were no impacts when the Pay Commission had first submitted the report. The government formed a 13 member secretary-level Empowered Committee or Secretaries group headed by Sinha in January to review the report of the 7th Pay Commission before cabinet nod. The 7th pay commission was set up by the UPA government in February 2014. It submitted the report after around 22 months. After getting the 7th pay commission report, the finance minister Jaitley while introducing the Seventh Pay Commission report on November 19, already said that the final decisions on the Seventh Pay Commission report took five and a half months including the process of Secretaries group. Finance Minister also said, government had requisite fund to implement it.
The secretary group is likely to propose pay structure of minimum at Rs 21,000 and the maximum at Rs 2,70,000 Accordingly, the Secretaries group is likely to reach the conclusion to propose 30 percent basic pay raise instead of 14.27 per cent, which was recommended by 7th Pay Commission.
They are also mulling for doubling of existing rates of such allowances and advances, which has been recommended for abolition by the 7th Pay Commission, sources said.
**************************************************************
7 CPC - REPORT LIMKS AS BELOW
1. 7TH CPC-EXTRACT DEF SERVICES - CLICK
2. REPORT 7TH CPC- FULL REPORT - CLICK
3. EXECUTIVE SUMMARY - 7 C P C - CLICK
4. CIVILIAN PAY & PENSION STRUCTURE 7 CPC - CLICK
***********************************************************
1. Separate Pay Matrices for Civilians, Defence and MNS.
2. Fitment Multiple of 2.57. Min Pay of Rs 18000. Three separate matrix for Lt Col(12A) , Cols(13) & Brigs (13A). Brig index improved to 2.67 instead of 2.57
3. Annual Increment at the rate of 3% of basic pay. Increment payable once in a
year either on 01 Jan / July.
4. No mention of NFU.
5. MSP. - NCsE - 3000. OR - 5200. JCOs - 10800. Officers upto Brig - 15500.
6. Pension. Existing pension to be multiplied by the index (2.57 to start with. Another Committee set up to study feasibility of the second option wherein the increments will get included. Current
retirees will draw pension at 50% of last drawn pay. (Continued Click Below)
8. Allces. Status Quo till such time another Committee under Finance secretary studies on rationalization of allces since pay commission proposals on abolition of many allowances have upset the Central Govt employees.
9. Parity
between Def Forces and CAPF.brought in for pay scales. Def Forces view it as deliberate downgradation of the Armed Forces.
10. Anomalies Group set up by the government to look into other
issues as brought out by employees / organizations.
11. Arrears wef 01 Jan 2016 will be payable within current FY.
13. Advances No interest bearing advances to be ceased except for Motor Car
and Motor Cycle. House Building Adv enhanced to 25 lakh..Computer adv also to
continue. All other interest free advances abolished except for
medical,transfer,LTC,tour etc.
14. Ex Gratia Grant enhanced in the range of 25-45 lakh.
15. Cost to Government including arrears is 84933 crores...without
arrears is 72800 crores.
READ DETAILED PRESS REPORT.
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. It will come into effect from 01.01.2016.
In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC. However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.
The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year.
The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.
Highlights of 7th CPC recommendations:
1.The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.
2.All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.
3.The minimum pay has been increased from Rs. 7000 to 18000 p.m. Starting salary of a newly recruited employee at lowest level will now be Rs. 18000 whereas for a freshly recruited Class I officer, it will be Rs. 56100. This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.
4.For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.
5.Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.
6.The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.
7.Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :
1.Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
2.A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
3.Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
4.Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
5.Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.
8.The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.
9.The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.
10.The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.
11.The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.
12.The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.
13.Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.
14.As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.
GO TO HOME PAGE
***********************************************************
Posted: 18 Jun 2016 04:59 AM PDT
** READ MORE AND PREVIOUS NEWS -- CLICK HERE
New Delhi: It’s good news for central government employees eagerly waiting for the implementation of 7th Pay Commission.
The implementation of 7th Pay Commission appears to be a matter of a few days now. As per Dainik Jagran report, the Cabinet Secretary met the PMO officials on Wednesday and apprised them about the secretaries panel’s recommendations on the salary and allowances hike recommended for central government employees.
The secretaries panel reviewing the 7th pay commission’s recommendations have submitted its report to the Finance Ministry. The Finance Ministry will prepare a note and present it before the Cabinet in the next 15 days.
The secretaries panel reviewing the 7th pay commission’s recommendations have submitted its report to the Finance Ministry. The Finance Ministry will prepare a note and present it before the Cabinet in the next 15 days.
With the threat of strike by central government employees looming large, the Cabinet is expected to take a prompt decision on the recommendations resulting in notification.
The salary hikes recommended are expected to apply from July.
Read at: Zee News
** PLEASE OPEN THE PREVIOUS POST - TO READ THE REPORT AND TABLES CLICK HERE
Cabinet Secretary P K Sinha who is heading the Empowered Committee or Secretaries group is likely to hand over a report on the revised pay structures of 7th pay commission recommendations to Finance Minister Arun Jaitley by the end of next month.
Finance Minister Arun Jaitley said government had requisite fund to implement 7th pay commission award. Cabinet
Secretary Sinha will finally make his appearance before the the Empowered Committee or Secretaries group on June 11 to make a proposal on the recommendations of 7th Pay Commission before cabinet nod.
Committee’s decisions on 7th Pay Commission and recommendation is expected to be submitted by June . The same will be placed before the Cabinet after the finance ministry’s review. We don’t think it will take more time for Finance Minister Arun Jaitley’s consideration and the new pay structures will be implemented from July after cabinet nod,” said a top official from the Finance Ministry who did not wish to be named.
The 7th Pay Commission headed by Justice A K Mathur submitted the report on November 19. It had proposed the highest salary at Rs 250,000 and the lowest at Rs 18,000. The commission also recommended 14.27 per cent increase in basic pay, 23.55% overall increase in salary, allowances and pensions.
The increase in allowances has been recommended to the extent of 63% while pension has been proposed to be raised by 24%. Finance Minister Jaitley is likely to agree with the Secretaries group. “I think it should not be touched again,” the official said. Once the new structure is implemented, salaries of around 48 lakh central government employees and 52 lakh pensioners will rise by 30 percent. The Finance Minister already said the 7th pay commission award would not make the commodity prices to go up.
The central government employees and pensioners will also spend more money on a variety of goods after receiving the 7th Commission award with arrears from January 2016. “This means higher consumption similar to what happened in the past. But the previous two Pay Commission awards came with a lag of two years. So the arrears were large.
This time, it will not be so,” says Pronab Sen, former Chief Statistician, government of India and now Country Director, International Growth Centre, a think tank based at LSE, run in partnership with University of Oxford.
The official also agrees with Sen and said there was no possibility of any impact of the report on the market at this stage of implementation as there were no impacts when the Pay Commission had first submitted the report. The government formed a 13 member secretary-level Empowered Committee or Secretaries group headed by Sinha in January to review the report of the 7th Pay Commission before cabinet nod. The 7th pay commission was set up by the UPA government in February 2014. It submitted the report after around 22 months. After getting the 7th pay commission report, the finance minister Jaitley while introducing the Seventh Pay Commission report on November 19, already said that the final decisions on the Seventh Pay Commission report took five and a half months including the process of Secretaries group. Finance Minister also said, government had requisite fund to implement it.
The secretary group is likely to propose pay structure of minimum at Rs 21,000 and the maximum at Rs 2,70,000 Accordingly, the Secretaries group is likely to reach the conclusion to propose 30 percent basic pay raise instead of 14.27 per cent, which was recommended by 7th Pay Commission.
They are also mulling for doubling of existing rates of such allowances and advances, which has been recommended for abolition by the 7th Pay Commission, sources said.
**************************************************************
7 CPC - REPORT LIMKS AS BELOW
1. 7TH CPC-EXTRACT DEF SERVICES - CLICK
2. REPORT 7TH CPC- FULL REPORT - CLICK
3. EXECUTIVE SUMMARY - 7 C P C - CLICK
4. CIVILIAN PAY & PENSION STRUCTURE 7 CPC - CLICK
***********************************************************
YOUR OBSERVATIONS AND COMMENTS
Dear Veterans,
1. We at Signals-Family Portal are ordinary people, in various issues concerning serving and retired Govt Personnel, as such, do heavily bank upon inputs from our readers. Kindly do add, comment and give your observations on this or any other post aimed at improving the posted contents for the benefit of the veterans community.
2. Kindly post these under the comments, we will much appreciate your contribution in this regard.
3. In order to avoid spam and unwarranted or mischievous posts, only such entries will get published where the Person has given his RANK, NAME & EMAIL ID at the end of his/her text. You will agree that we must know as to whom we are communicating.
4. We will do our best to post our response as quickly as possible after getting the facts vetted from offrs, JCOs and men who are more knowledgeable on particular subject.
With best wishes
Sincerely yours,
Brig Narinder Dhand (Veteran)
Dear Veterans,
1. We at Signals-Family Portal are ordinary people, in various issues concerning serving and retired Govt Personnel, as such, do heavily bank upon inputs from our readers. Kindly do add, comment and give your observations on this or any other post aimed at improving the posted contents for the benefit of the veterans community.
2. Kindly post these under the comments, we will much appreciate your contribution in this regard.
3. In order to avoid spam and unwarranted or mischievous posts, only such entries will get published where the Person has given his RANK, NAME & EMAIL ID at the end of his/her text. You will agree that we must know as to whom we are communicating.
4. We will do our best to post our response as quickly as possible after getting the facts vetted from offrs, JCOs and men who are more knowledgeable on particular subject.
With best wishes
Sincerely yours,
Brig Narinder Dhand (Veteran)
Thank you Sir. Yes, the MoD has announced the 7 CPC instructions. But, kindly tell me what happens to the One Man Commission set up by the Govt? Was it an exercise in futility? Regards (Veteran) Air Cmde Amul Kapoor VM.
ReplyDeleteCan someone explain the benefit of adding three increments for Lt Cols in the defence pay matrix as per 7 CPC vide this RESOLUTION. As it is all those Lt Cols who do not become Col (select) are to become Col(TS) after 26 Yrs under existing time scale promotion rules.
ReplyDeleteRespected Brig Sab, I have the following humble submission on the formula applied for revising the pension under 7th CPC of the effected retirees of pre 1.1.2016. As regards the multiplication factor of 2.57 to the existing pension pertaining the the Central Govt civilian employees it may be accurate and there is less chance for anamolies in the pension between pre and post 1.1.2016 retirees. In the case of Military personnel the MSP admissible to JCOs OR and officers are taken in to account for calculation of pension.By applying the multiplication factor of 2.57 to the existion pension there will occur loss to the retirees of pre 2016 in the admissibility of the MSP. Here is the calculation. The present rate of MSP for JCOs OR is 2000.By applying the multiplication factor of 2.57 the total come to 5140. The benefit admissible to pre 1.1.2016 is only 5140 where as approved MSP for post 1.1
ReplyDelete2016 is 5200. Here the difference is 60. In other words pre 1.1.2016 retirees will get the pension of 30 less in comparison to post 1.1.2016. In the same way officers case by applying multiplication factor of 2.57 to the existing rate of MSP of 6000, it will work out only 15420 where as the approved revised rate is 15500.Here the difference works out to 80 and pre 1.1.2016 retirees of officers will get 40 comparately less than the post retirees of 1.1
2016.I am of the opinion the formula to be applied for calculation of pension should as follows. The present rate of Pension under OROP to be taken less MSP ie 2000 for JCOs OR and 6000 for officers to arrive the figure by multiplication factor of 2.57 as applicable to Central Govt civilian employees.The revised rate of MSPie 5200 and15500 as applicable can be added to arrive the total pay last drawn. Half of the figure to be fixed as pension for each rank based on the total period of qualifying service.The difference in the pension will have axtra loss or gain as and when the DA increases.The anomalies in the entitlement of MSP likely to be created,needs consideration for rectifying at the level of DEEW.Sir your kind honour is requested to verify the correctness. With highest regards and respects.
Of course that should be a convenient way to calculate the bare minimum pension. It is not certain even that is likely to be forthcoming, judging from some online comments about possibility of adoption of a 2.89xVI_CPC_Pension calculation.
ReplyDeleteEven with the 2.57*(31Dec2015 pension) calculation outlined above, a pre 2013 Col pensioner with 33 years of service (as cited in the blog post example) may be getting the pension of a 2016 Col pensioner with app 25 years of service.
Please have a look at this calculation
Mention is made about the additional three stages for Lt Col and Col. What does this mean?
ReplyDeleteSir Multiplication factor 2.57 is applicable to CCGE. There has to 50% affect on pension for increased MSP for Defence Persons, as notification says MSP would be counted only for DA and pension purposes. If this can be clarified.Thanks
ReplyDeleteRECEIVED FROM A MEMBER OF NAVAL FOUNDATION, PUNE BY WHATSAPP
ReplyDeleteDIST STD A – GMR FILE
DTG 091901
FROM NHQ
TO 367 IG
SEVENTH PAY COMMISSION (.) IN RECENT TIMES THERE HAS BEEN SEVERAL SPECULATIVE MEDIA REPORTS AND DISINFORMATION ON FINAL OUTCOME OF SEVENTH PAY COMMISSION (7TH CPC) RECOMMENDATIONS (.) SERVICE HEADQUARTERS HAVE MAINTAINED CONTINUOUS INTERACTION WITH ALL AUTHORITIES CONCERNED AND OUR CONCERNS HAVE BEEN HIGHLIGHTED AT ALL LEVELS TIME AND AGAIN
2 (.) WHILST A FEW OF OUR CONCERNS HAVE BEEN ADDRESSED WE HAVE BEEN CONSTRAINED TO REQUEST THE GOVT TO HOLD IMPLEMENTATION OF 7TH CPC AWARD IN ABEYANCE IN VIEW OF ANOMALIES WHICH NEED TO BE RESOLVED
3 (.) IN THE INTERIM PERSONNEL ARE EXPECTED TO DISPLAY MATURITY AND PATIENCE AND NOT BE SWAYED BY HEARSAY OR SPECULATIVE REPORTS FROM ANY QUARTER
091901/SEP
Posted by Aerial View
Sir,
ReplyDeleteMSP as recommended in 7th Pay commission is 2.57 multiplied by old rates, so even if we take complete figure of Pension either for officer JCO or other ranks it is not going to make any difference.
Lt Col V K Varshney
JC-103600H Sub(Clk) Manohar Parkhi. Mail ID parkhimanohar43@gmail.com
ReplyDeleteRespected Sir,
I thank you for the formula given for calculation of basic pension and arrears. When I checked the formulas for correectness, I found that the formula for arrears from Jul to Oct i.e. .979 is not correct. Kindly check again and correct. I am sorry for pointing out the things.
17/9/16 MANOHAR PARKHI, INDORE
Sir, humble submission is, the 7th CPC recommended 2.62 mf for GP.2 ,by MF 2.57 the pension increase will be less by RS.500/- needs sympathetic consideration. Thanks & regards.
ReplyDeleteFrom Maj Ram Singh Retd
ReplyDeletee-mail - majorrs18@gmail.com
Respected Sir,
please Ref GOI MOD Resolution No 01(E) , No1(6)/2016/D(Pay/Services) dt 05 Sept 2016.
After going through the tables att with above letter(Annex -II & Annex III) it is noted that the Starting salary of MNS in pay Scale (15600-39100) Grade pay 6600 Present colmn 11 is higher (Rs 963300/-)than the regular officer in same scale and same grade at same colmn( Rs 69400/-). May I request you to clarify.
It has been several months since the decision to use the 2.57x formula was adopted. It was understood committees were formed to find ways to implement the index/increment based pension fixation. If the OMJC on OROP is any example, the finalisation may take months, if not years. But, as 7CPC pension fixation affects civilian pensioners as well as defence veterans, the process may get hastened somewhat as compared to the OROP matter.
ReplyDeleteSome estimate of the shortfall vis-a-vis pensions calculated as per the index based system can be gauged from the blog post that can be accessed with this link https://goo.gl/A7THBL