NFIR New Year Message

NFIR New Year Message

No.IV/NFIR/7 CPC(Imp)/Allowance/2016/Part I

Dated: 25/12/2017

MESSAGE

Dear Brothers/Sisters,

We Will be celebrating New Year Day on January 1, 208 with disappointment and  agony as the Government has done grave injustice by reducing the percentage or various  Allowances and also by not granting the Allowances from 1st January. 2016. Almost all Railway employees in all corners Of Indian Railways have been deprived Of their legitimate Allowances in terms Of percentages existed prior to acceptance Of 7th CPC report.

The Running Staff, Brothers/Sisters, are aware that NFIR has placed cogent case before the Railway Board for hiking Kilometrage rates on the basis of Running Allowance formula and revision of TA rates. Our presentation was admired by the Running Staff. The Railway Board has discussed with NFIR twice on revision of Running Allowance rates and on both the occasions we conveyed the logic for upward revision or mileage rates and also revision of other related Allowances.

It is sad to mention that the decisions reached negotiated settlement concerning various categories of employees are yet to be implemented while we are walking into New Year on 1st January, 2018. As part of celebrations, everyone of us should convey our deep sense Of disappointment and anguish to the Railway Ministry and the Government and at the same time urge the Government to respond to our issues quickly and positively.

Yours fraternally,

sd/-
(Dr. M.Raghavaiah)
General Secretary

Source: NFIR

Clarification regarding pay fixation under 7th CPC for the post of Trainee appointed on compassionate grounds

Clarification regarding pay fixation under 7th CPC for the post of 'Trainee' appointed on compassionate grounds

CGDA, Ulan Batar Road, Palam, DelhiCantt-110010
No.AN/XIV/14164/7th CPC/corrsp/Vol-II

Dated: 11/10/2017

To
All PCsDA/CsDA/PCof A(Fys) Kolkata

Subject: Clarification regarding pay fixation under 7th CPC for the post of 'Trainee' appointed on compassionate grounds.

Reference: This HQrs Circular of even no dated 01/02/2016.
With reference to the above cited circular, Ministry of Finance Dept. of Expenditure to whom the matter was referred has since clarified as under:

"Level -1 of the Pay Matrix introduced on implementation of the 7th CPC Report be the replacement for the pre-revised -IS scale. The pay of those governed by the IS scale may be revised by using the fitment factor of 2.57 for placement in Level -1 in conformity with the Rule 7 of the CCS(RP)Rules 2016. All pre-revised pay stages lower than pre-revised pay of Rs 7000 in the pre-revised -IS scale shall not be considered for determining the benefit of bunching, on the same lines as has been clarified by MoF(DoE)'s OM dated 3.08.2017 on application of the benefit on account of bunching".

2.This is for your information and necessary action please. All pay fixation cases may be regulated accordingly.

S/d,
(Kavita Garg)
Sr.Dy.CGDA(AN)

Source: CGDA

Fixation of the pay of the pre-revised pay scale of 1S scale granted to candidates appointed as trainees on compassionate grounds in the Seventh Central Pay Commission (7th CPC)

Fixation of the pay of the pre-revised pay scale of 1S scale granted to candidates appointed as trainees on compassionate grounds in the Seventh Central Pay Commission (7th CPC)

No. 14014/2/2009-Estt,D
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel & Training)

North Block, New Delhi
Dated the 09th October, 2017

OFFICE MEMORANDUM

Sub : Fixation of the pay of the pre-revised pay scale of 1S scale granted to candidates appointed as trainees on compassionate grounds in the Seventh Central Pay Commission (7th CPC) - reg.

The undersigned is directed to invite attention to this Department's 0.M.No.14014/02/2012-Estt(D) dated 16.01.2013 containing consolidated instructions on the subject of compassionate appointments. With regard to appointment of candidates not immediately meeting the educational standards as trainees these instructions provide as under:

"In exceptional circumstances Government may consider recruiting persons not immediately meeting the minimum educational standards. Government may engage them as trainees who will be given the regular pay bands and grade pay only on acquiring the minimum qualification prescribed under the recruitment rules. The emoluments of these trainees, during the period of their training and before they are absorbed in the Government as employees, will be governed by the minimum of the - 1S pay band Rs.4440-7440 without any grade pay. In addition, they will be granted all applicable Allowance, like Dearness Allowances, House Rent Allowance and Transport Allowance at the admissible rates. The same shall be calculated on the minimum -IS pay band without any grade pay. The period spent in the -1S pay band by the future recruits will not be counted as service for any purpose as their regular service will start only after they are placed in the pay band PB-1 or Rs.5200-20200 along with grade pay of Rs.1800."

2. The 7th CPC has not provided any replacement scale for 1S pay, band of Rs.4440- 7440 without any grade pay which is granted to trainees appointed under the scheme for compassionate appointment. The matter was taken up with the Department of Expenditure and it has now been decided by the Government that Level-1 of the Pay Matrix introduced on implementation of the 7th CPC Report be the replacement for the pre-revised- 1S scale. The pay of those governed by the 1S scale may be revised by using the Fitment Factor of 2.57 for placement in Level-1 in conformity with the Rule, 7 of the CCS (RP) Rules, 2016. All pre - revised pay stages lower than pre-revised pay of Rs.7,000 in the pre-revised 1S scale shall not be considered for determining the benefit of bunching, on the same lines as has been clarified by this Department's 0.M dated 03.08.2017 on application of the benefit on account of bunching.

3. This will be effective from 01.01.2016.

(G.Jayanthi)
Joint Secretary (E-I)

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Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2017

Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2017

DA Order Jan 2017 - Finmin Released Dearness Allowance Order

No. 1/3/2017-E-II(B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 30th March, 2017.

OFFICE MEMORANDUM

Subject : Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2017.

The undersigned is directed to refer to this Ministry's Office Memorandum No. 1/2/2016-E-II (B) dated 4th November, 2016 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 2% to 4% of the basic pay with effect from 1st January, 2017.

2. The term 'basic pay' in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).

4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of Tess than 50 paise may be ignored.

5. The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March, 2017.

6. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

7. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

(Nirmala Dev)
Deputy Secretary to the Government of India

DA Order Jan 2017

7th CPC Pension Calculation : Implementation of First Option after Committee Report

7th CPC Pension Calculation : Implementation of First Option after Committee Report

“Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made applicable if its implementation is found feasible after examination by the Committee”

Revision of Pension of pre 7tn CPC retirees : The Commission recommends the following pension formulation for civil employees including CAPF personnel who have retired before 01.01.2016

(i) All the Civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations ) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he / she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.

(ii) The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.

(iii) Pensioners may be given the option of choosing whichever formulation is beneficial to them. It is recognized that the fixation of pension as per formulation in (i) above may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring level. It is therefore recommended that in the first instance the revised pension may be calculated as at (ii) above and the same may, be paid as an interim measure. In the event calculation as per (i) above yields a higher amount the difference may be paid subsequently.(Para 10.1.67 and Para 10.1.68 of the Report)
Both the options recommended by the 7th Central Pay Commission as regards pension revision be accepted subject to feasibility of the implementation. Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made applicable if its implementation is found feasible after examination by the Committee comprising Secretary (Pension) as Chairman and Member (Staff). Railway Board, Member (Staff), Department of Posts, Additional Secretary & Financial Adviser, Ministry of Home Affairs and Controller General of Accounts as Members

Authority: http://www.pensionersportal.gov.in/

7th CPC REPORT & NDA GOVERNMENT

7th CPC REPORT & NDA GOVERNMENT

M. Krishnan, Secretary General,
Confederation of C. G. Employees & Workers

Report of the 7th Central Pay Commission (CPC) headed by Retired Supreme Court Justice, Ashok Kumar Mathur was submitted to Government on 19th November 2015 after 21 months. The Union Cabinet announced its decision to implement the recommendations on 29th June 2016. Through the press release circulated to media and the statement of Finance Minister, the Government made a calculated move to create an impression among the public that the Modi Government is magnanimous enough to extend big bonanza to the Central Government employees. Eventhough, immediately after submission of the 7th CPC report, the Joint Council of Action of Central Government Employees (NJCA) representing Railways, Defence and Confederation including Postal had submitted a memorandum to Government demanding modifications of the retrograde recommendations of the 7th CPC, the Government while announcing its decision, rejected all the demands raised by the staff side.

The 7th CPC recommended only Rs.18000/- as minimum pay by arbitrarily modifying and manipulating Dr. Aykroyd’s Need based minimum wage formula on untenable premises and incorrect data. The main demand of the NJCA is to re-compute the minimum wage on the basis of actual commodity prices as on 01.07.2015 and factor Dr. Aykroyd formula stipulated percentage for housing, social obligations and children’s education etc. and to revise the fitment formula and all pay scales on the basis of the so determined minimum wage. The methodology adopted by 7th CPC is irrational, imaginary and even absurd.

The Government’s claim that big increase is given to the employees is totally false. In para 4.2.9 of the report, the 7th CPC has given a table depicting the percentage of increase provided by the successive pay commissions appointed after independence. According to the table, the 2nd CPC has made a paltry increase of 14.2.% (1960), the 3rd CPC gave a rise of 20.6% (1973), the 4th CPC 27.6% (1986), the 5th CPC 31% (1996) and 6th CPC 54% (2006) whereas the average increase granted by 7th CPC is only 14.29% (2016), while the percentage increase had been in ascending order all along, the 7th CPC has sought to reverse that trend. The megre increase recommended and accepted by the Government without any change is the worst ever any pay commission has recommended since 1960. In 1960 five days historic strike of entire Central Government employees took lace demanding modifications of 2nd CPC recommendations.

Another claim of the Government is that it has accepted the recommendations of the 7th CPC to increase the existing salary by 2.57 times !!!. This is a totally misleading propaganda. The existing basic pay of a lowest level employee of the Central Government called Multi-Tasking staff (MTS) is 7000 plus 125% Dearness Allowance as on 01.01.2016. Thus the total salary as on 1st January 2016 is 7000 + 8750 DA = 15750. The Minimum pay recommended by 7th CPC is 18000 i.e; the actual increase in salary is Rs. 2250/- only at the lowest level. The fitment factor of 2.57 is worked out excluding the 125% DA an employee is getting at present. As the next wage revision takes place only after ten years in 2026, the above increase of 2250/- in the salary is megre.

In the past, every time, either before or immediately after the appointment of pay commissions, the employees are granted DA merger, Last time, before appointment of 6th CPC, Government has granted merger of 50% DA in 2004 and the merged DA is treated as Pay for all purposes. This time no DA merger is granted. Suppose, as in the past, the Government has accepted the demand for merger of 50% DA as on 01.01.2011 when DA crossed 50%, the total salary of an employee at the lowest level as on 01.01.2016 will become Rs.18395/- (7000 + 50% DA 3500 = 10500 + remaining 75% DA as on 01.01.2016 Rs.7875 = 18395). Thus it can be seen that even if no pay commission is appointed by Government, simply by granting DA merger alone the lowest level salary will become more than 18000/- which is recommended by 7th CPC after 21 months study and spending crores of rupees for its functioning.

The Government’s press release further claim that the ratio between lowest and highest salary (compression ratio) is 1:3.12. The highest level employees are Cabinet Secretary and Secretaries of various departments. The recommended salary of the Cabinet Secretary is 2,50000. Government deliberately avoided comparison between salary of lowest employee and highest level employee, instead compared with middle level Class-I officer only. Actual ratio between the lowest and highest salary come to 1:14 (18000:2,50000). No other pay commission has recommended such a huge margin.

Other retrograde recommendations of the 7th CPC are as follows:

1. House Rent Allowance (HRA) rate reduced from 30%, 20% and 10% to 24%, 16% and 8%
2. 52 existing allowances are to be abolished.
3. All interest-free advances including Festival advance, are to be abolished. Only interest bearing advances to be retained.
4. Salary for the second year of Child care leave granted to women employees should be reduced to 80%.
5. For Three Time bound promotions (Assured Carreer Progression) passing examination and other conditions made mandatory.
6. New Pension Scheme (NPS) shall continue, recommended only some cosmetic changes.
7. Contractorisation and casual labour System shall be continued.
8. Outsourcing of Government functions to continue.
9. Employment of retired personnel to be legalized and panel of experienced retired personnel should be kept ready.
10. Filling up of vacancies – commission pointed out that there are six lakhs unfilled vacancies in Central Government services, but no recommendations for filling up the vacancies in a time bound manner by special recruitment.
11. Regularisation of Gramin Dak Sevaks of Postal department – rejected.
12. Increase in minimum pension percentage, Fixed medical Allowance to Pensioners and increment rate – rejected.

Inspite of several round of country wide agitational programmes conducted by NJCA including massive Parliament March, the NDA Government refused to negotiate the demands with the staff side, but declared unilateral implementation of the recommendations without any modifications. The resentment, anger and protest of the entire Central Government employees increased day-by-day and the NJCA decided to go ahead with indefinite strike from 11th July 2016 and preperations and campaigning for making the strike a thundering success went on in full swing. Modi Government understood that if it still refuse to discuss with the NJCA then from 11th July 6 AM onwards the entire Central Government establishments including Railways, Defence, Postal and other departments. will come to standstill marking the commencement of the biggest strike action of the Central Government employees.

It is in this background the Hon’ble Prime Minister directed three Cabinet Ministers including Home Minister Shri Rajnath Singh, Finance Minister Shri Arun Jaitly and Railway Minister Shri. Suresh Prabhu to hold discussion with the NJCA leaders on 30th January 2016. Major demands in the Charter of demands were discussed with particular reference to Improvement in Minimum wage and fitment formula. Issues relating to parity in pension was also discussed. Finally the Ministers assured that a high level committee will be appointed to consider the issues raised by the NJCA.

As no written minutes or communications is forthcoming from the Government regarding the 30th June discussion and assurances, the NJCA decided to go ahead with the strike. Country wide demonstrations were held daily in front of all offices and at all important centres. On 6th July 2016 when the NJCA meeting was in progress, Hon’ble Home Minister Shri Rajnath Singh again invited the NCA Leaers for discussion. The Minister reiterated the earlier assurances and told that Finance Minister will issue a press statement making the Government stand clear on the demands.

Accordingly, the Government issued a press statement on 6th July 2016 in which it is stated that – “The Ministers assured the Union leaders that the issues raised by them would be considered by a High Level Committee.”

Thus, the unite struggle of the entire Central Government Employees compelled the unwilling NDA Government to accept the reality that modification in the 7th CPC recommendations is a must and before arriving at a final conclusion the staff side should be given a fair chance to present and discuss the case with the Government. It was assured that the proposed High Level Committee to be appointed by the Government shall complete its task within a time frame.

Advancement in the wages and service conditions of Central Government Employees can be achieved only through the united struggle of all Central Government employees for which the unity built up under the banner of NJCA is to be maintained and strengthened. Further the neo-liberal policy offensives of the NDA Government in the Central Government Employees Sector including privatisation, outsourcing, downsizing, contractorisation, corporatization, winding up of departments, New Pension Scheme etc. can only be resisted and reverted by building up united movement of the entire employees. Eventhough the strike is deferred, the Central Government employees shall continue its united struggle against the anti-people and anti-labour policies of the NDA Government. We should self-critically analyze the strength and weakness of the NJCA and shall arrive at proper conclusion for taking corrective measures, if necessary, and also for further unity and advancement. The final outcome of the united struggle is, no doubt, one step forward.

Source : http://confederationhq.blogspot.in/

Charter of demands – Indefinite Strike from 11th July 2016-reg

NFIR

National Federation of Indian Railwaymen

3, CHELMSFORD ROAD, NEW DELHI – 110 055

Affiliated to :
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (lTF)
No. IV/NJCA (N)/2014/Part II

Dated: 1st July 2016

Brother,
Sub: Charter of demands – Indefinite Strike from 11th July 2016-reg
Ref: NFIR’s letter No. II/95/Parth IX dated 30/06/2016

In continuation of communication dated 30/06/2016, it is to inform that as a result of General Secretary NFIR’s discussion with Shri Suresh Prabhu, Hon’ble MR at 15:30 hrs., on 30/06/2016 on the Charter of Demands in general and major demands i.e. minimum wage’ multiplier factor in particular Hon’ble MR has assured to approach Hon’ble Prime Minister. Pursuant to the efforts of GS/NIFIR, the CRB telephoned Shri Raghavaiah at 18:45 hrs., on 30/06/2016 that the Federations have been invited to meet Hon,ble Finance Minister at the residence of Shri Rajnath Singh, Union Home Minister at 21:30 hrs, on 30/06/2016. Accordingly the undersigned reached the residence of Union Home Minister and participated in the discussions. Besides Hon’ble Finance Minister Shri Arun Jaitely, Shri Suresh Prabhu Hon’ble MR and Shri Manoj sinha Hon’ble MoSR were present during discussions. union Home Minister

Shri Rajnath Singh also participated in the discussions After 90 minutes discussions, it has been emerged that the “Minimum Wage” issue will be referred to the Committee to examine and give report. In view of this development, the NJCA met this date (1st July 2016) and having taken stock of the situation has decided to meet again on 06th July 2016 for taking appropriate decision. In the meanwhile, efforts will be made for obtaining written  communication as a follow up to the meeting held at the residence of Union Home Minister Shri Rajnath Singh on 30th June 2016. A copv of letter dated 01st July 2016 issued by NJCA Convener is enclosed.

DA/As above

Yours fraternallY,
(Dr. M. Raghavaiah)

General Secretary

File No. II/95/Part IX.

NJCA
National Joint Council of Action
4, State Entry Road New Delhi – 110055

Dated: July 1 ,2016

Dear Comrades!
We are to inform you that the NJCA had a discussion with the Government of India yesterday, i.e. 30.06.2016 over certain demands contained in our Charter of Demands.

ln the meeting, following ministers were present:-

Shri Rajnath Singh, Hon’ble Home Minister
Shri Arun Jaitley, Hon’ble Finance Minister
Shri Suresh Prabhakar Prabhu, Hon’ble Railway Minister
Shri Manoj Sinha, Hon’ble MoSR 

on behalf of the NJCA, the following participated in the discussion:-

Shri Shiva Gopal Mishra, Convener NJCA
Shri M. Raghavaiah, Chairman NJCA
Shri K.K.N. Kutty, Member NJCA
Shri C. Srikumar, Member NJCA

The government has proposed to refer the issue of Minimum Wage and Fitment Formula to a Committee for reconsideration.

The NJCA will await communication in this regard from the government.

The NIJCA will again meet on 6th July at 11:00, hrs-, in JCM office. 13-c Ferozshah Road. Nqw Delhi, for taking appropriate decision

With Fraternal Greetings!

Comradely yours,
(Shiva Gopal Mishra)

Convener
NFIR India

7th Pay Commission Latest News – Two more Committee Meetings likely to happen soon

7th Pay Commission Latest News – Two more Committee Meetings likely to happen soon

Even as 7th Pay Commission Empowered Committee is in the process of finalising its report, Staff Side Associations are relentlessly trying for Negotiations with Govt before final decision on increase in pay and allowances is taken by Cabinet 

7th Pay Commission Latest News – Two more Committee Meetings in the offing before final decision on 7th CPC implementation is taken by Government

Latest developments in the process of 7th Pay Commission report by Empowered Committee indicates that decision by the Committee would not be taken as quickly as it was expected earlier.

India.com, a news website from Zee News Group reports that Empowered Committee has called for more data from 7th Pay Commission implementation cell, the administrative wing appointed by govt to process 7th CPC report, after the meeting held last week.

To look into these data and to decide further increase in minimum pay and fitment factor over and above recommended by 7th Pay Commission, two more Empowered Committee Meetings may be held, India.com reports.

Consequently, final decision of Cabinet on implementation of 7th Pay Commission may not be taken this month. However, news sources close to finance ministry indicates that final decision on 7th Pay Commission report may not take much longer. If the Empowered Committee continues to process the report without any break which is the case now, its report would be submitted within a month, after which Cabinet will take its final call.

Earlier, many media reports suggested that Empowered Committee is likely to take a decision of increasing the minimum of Central Government Employees to Rs. 23,500 as against Rs. 18,0000 proposed by 7th Pay Commission.

7th Pay Commission had arrived at the additional burden of Govt on increase in Salary and pension at 23.55 % and 24 % respectively as Rs 73,650 crore for Central Government Employees, Defence Personnel & Pensioners and Rs 28,450 crore for Railway Employees and Pensioners.

Now, it is needless to say, additional increase over and above the pay and allowances recommended by 7th Pay Commission would require more allocation for Central salary than the Budget Estimates.

Source: India.com (Zee News Group)

Civil Service officers present memorandum to Dr Jitendra Singh on 7th CPC report

Civil Service officers present memorandum to Dr Jitendra Singh on 7th CPC report

A delegation of Civil Service officers representing the “Confederation of Civil Service Associations” called on the Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh here and sought his intervention for implementing the recommendations of the 7th Central Pay Commission (CPC) report, so as to address their long standing grievance of discrimination vis-a-vis certain other All-India Services.

In a memorandum presented to the Minister yesterday, members of the delegation acknowledged that the 7th CPC, while recommending the status-quo, had addressed their long pending demand for “parity” with other services. But, the memorandum alleged that the main cause of resentment among the non-IAS Civil Service Officers was that all the senior level posts covering majority of Departments, be it technical or administrative, are today manned by IAS Officers, which is the main cause of grievance among the non-IAS Civil Service Officers. The memorandum called for giving equitable treatment to all the Services so that the gap between the IAS and other Services does not widen and lead to, what they described as, chaotic situation.

The memorandum claimed that the majority view in the 7th CPC was in favour of changing the status-quo on the issue of pay disparity also. They said, at present, there is a clear edge enjoyed by the IAS and Indian Foreign Service over other Services in terms of additional increments.

The memorandum requested that disparity in Pay may kindly be removed altogether. In addition, it also requested that the new system of cadre restructuring be adopted and a comprehensive cadre review may be undertaken by all Services so that officers can get promoted in time.

The memorandum also requested that in the Committee of Secretaries, appointed by the Government to examine the report of the 7th CPC, such members should be appointed who represent all different sections of stakeholders and may function with neutrality.

Dr Jitendra Singh gave the delegation a patient hearing and said that he will forward their case to the Union Finance Ministry.

PIB

Equal Pay for Equal Work – 7th CPC Report

Equal Pay for Equal Work – 7th CPC Report

“Equal Pay for Equal Work  – Pay Matrix addresses these issues as well”

 

One recurrent theme in the representations of various associations relates to ‘equity’ or ‘Equal Pay for Equal Work.’

Ideally, the remuneration package should establish horizontal equity: employees should feel that their pay is comparable with the remuneration structure of similarly placed positions outside their organization. The employees should also feel that the pay structure shows linear progression pattern and thus the notion of vertical equity is also maintained.

The Pay Matrix addresses these issues as well. The Commission has designed the pay structure in such a manner that the pay progression recognises the importance of vertical relativities and also assigns a reasonable basis to such progression. This has been done by assigning a uniform fitment factor of 2.57.

The Commission feels that there is strong need to create a culture of performance in government – from establishing standards of performance, to measuring, and promoting people based on performance. To emphasize on the culture of performance, the Commission has recommended that all the non-performers in the system should be phased out after 20 years.

The Commission has recommended that Performance Related Pay should be introduced in the government and that all Bonus payments should necessarily be linked with productivity.

The various Central Services have contended that this edge given to the IAS and the IFS is iniquitous and violates the principle of ‘equal pay for equal work.’

They have pointed out that the Civil Services Examination (CSE) conducted by the UPSC is an examination that is common for recruitment to around 18 Group `A’ Services and that the choice of Service exercised by the candidates is based upon very many factors. It is not necessary that only the top-most go to the IAS. It has also been pointed out that officers of most of the Services are, in their early years, posted to small places and are subjected to many transfers. Therefore, the grant of the edge is seen as unfair.

Analysis and Recommendations : This Commission has studied the entire issue and deliberated in detail on the issue in the Chapter 7.2. The Chairman has sought not only to retain the two increment edge within the proposed pay matrix for the IAS and Indian Foreign Service but also extended it to the Indian Police Service and the Indian Forest Service. Shri Vivek Rae, Member, Seventh CPC is not in agreement with extension of the edge in pay to the IPS and IFoS. Dr.Rathin Roy, Member, Seventh CPC is not in agreement with the concept of an edge in pay.

Ration Money Allowance should be exempt from Income Tax – 7th CPC Report

Ration Money Allowance should be exempt from Income Tax – 7th CPC Report

Ration Money Allowance (RMA) : Ration Money Allowance (RMA) is paid to all personnel of Defence forces and nongazetted personnel of CAPFs, Delhi Police, IB, A&N police and such personnel of Indian Reserve Battalions (IRBn) as are posted in Andaman and Nicobar Islands and don’t dine in the mess. The existing rate of this allowance is ?95.52 per day for Non-Gazetted personnel and Rs.79.93 per day for Gazetted personnel.

There are demands to extend RMA to gazetted officers of CAPFs in line with Defence forces. Demands have also been received from some CAPFs that RMA should be exempted from the purview of income tax.

Analysis and Recommendations : Ration Money Allowance is revised periodically by Ministry of Defence and Ministry of Home for their personnel. Hence, it is proposed that status quo be maintained regarding the rates of this allowance.

However, regarding the admissibility of RMA, PBORs of CAPFs and Indian Coast Guard should be eligible to draw RMA irrespective of the place of posting (except when in receipt of the Detachment Allowance). Presently, officers of SSB who are posted in field areas at altitudes of less than 7000 feet are not eligible for RMA. This restriction of 7000 feet should be removed.

Regarding income tax exemption of RMA, the Commission, as part of its general approach, has refrained from making recommendations involving income tax. However, looking into the unique service conditions of CAPFs, the Commission is of the view that since RMA is granted in lieu of free rations, it should be exempt from income tax.

It is further recommended that the provision of free rations and the grant of Ration Money Allowance to officers of Defence forces posted in peace areas should be withdrawn.