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7th Pay Commission Report
Showing posts with label 7th Pay Commission Report. Show all posts
Showing posts with label 7th Pay Commission Report. Show all posts

Saturday, 7 January 2017

DA from January 2017 will be 4% or 5% - Dearness Allowance Estimation

Babloo - 10:35:00

DA from January 2017 will be 4% or 5% - Dearness Allowance Estimation

DA from January 2017 will be 4% or 5% based on Consumer Price Index (Industrial Workers) from January 2016 to December 2016 - Net increase in DA with effect from January 2017 is estimated to be 2% or 3%

All India Consumer Price Index (Industrial Workers) for the month of November 2016 has been released by Ministry of Labour few days back.

What do we need for estimating DA from January 2017 ?

After implementation of 7th Pay Commission report, same inflation index i.e Consumer Price Index (Industrial Workers) with base year 2001=100, which was used for 6th Pay Commission Pay, is adopted for determining Dearness Allowance of Central Government Employees and Pensioners.
The only difference in DA calculation as far as DA from January 2016 will be, will be taking the Average of CPI-IW recorded in 2015 in the place of Average of CPI-IW recorded in 2005 which was used in 6th CPC DA calculation

Dearness Allowance payable after implementation of 7th Pay Commission= (Avg of CPI-IW for the past 12 months - Average of CPI-IW recorded in 2015)*100/(Average of CPI-IW recorded in 2015)

In order to determine DA with effect from January 2017, based on the above formula we need Consumer Price Index for the months from January 2016 to December 2016

Now that Consumer Price Index for the months from January 2016 to November 2016 is available, we have made an attempt to estimate Dearness Allowance applicable to Central Government Employees and Pensioners with effect from 1st January 2016, by assuming the possible CPI (IW) for the month of December 2016.
MonthActual AICPI-IW
Jan-2016269
Feb-2016267
Mar-2016268
Apr-2016271
May-2016275
Jun-2016277
Jul-2016280
Aug-2016278
Sep-2016277
Oct-2016278
Nov-2016277
Dec-2016Yet to be released

Estimation of DA from 1st January 2017:

Scenario 1 : No increase in AICPI (IW) in December 2016

AICPI (IW) for November 2016 is 277. If AICPI (IW) for December 2016 remains the same as November 2016, there will be additional 1% increase in DA from January 2017 which would make overall DA as 5%.

DA with effect from 1st January 2017= [ (269+267+268+271+
275+277+280+278+
277+278+277+277)/12]-(261.4)
X100/261.4
= 5 %

Scenario 2: Decrease in AICPI (IW) in December 2016
Even if All India Consumer Price Index (Industrial Workers) decreases by 31 point and pegged at 246 in the month of December 2016, DA from January 2017 will be 4% . At the same time even for 1 point decrease in the index for December 2016 will result in lesser DA increase from January 2017 compared to Sceanrio 1 in which index is unaltered in Dec 2016.
DA with effect from 1st January 2017= [ (269+267+268+271+
275+277+280+278+
277+278+277+246)/12]-(261.4)
X100/261.4
= 4 %
DA with effect from 1st January 2017= [ (269+267+268+271+
275+277+280+278+
277+278+277+276)/12]-(261.4)
X100/261.4
= 4 %

Scenario 3 : Increase in AICPI (IW) in December 2016

It is very interesting to note here that, even for increase in consumer price index in the month of December up to 31 points, i.e Increase in AICPI (IW) for December 2016 to 308 points from 277 points in November 2016, DA from January 2017 will be 5% only.

DA with effect from 1st January 2017= [ (269+267+268+271+
275+277+280+278+277+
278+277+308)/12]-(261.4)
X100/261.4
= 5 %

The other scenario that increase of more than 31 points in AICPI (IW) in the month of December 2016 for making DA with effect from January 2017 more than 5% is most unlikely.

Hence, it is more logical to conclude that DA from January 2017 will be either 4% or 5%.

Tuesday, 28 June 2016

7th Pay Commission: Cabinet may clear higher increase tomorrow

Babloo - 10:22:00
7th Pay Commission: Cabinet may clear higher increase tomorrow

Latest-7th-Pay-Commission-News
New Delhi: The Cabinet tomorrow is likely to approve higher increase in basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners.

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.

“Considering the tight fiscal position this year, the government may improve upon the Pay Commission recommendation for basic pay to 18 per cent or at best 20 per cent,” a senior official said.

The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments.

A secretaries’ panel, headed Cabinet Secretary P K Sinha, has already vetted the 7th Pay Commission recommendation and its report is being translated into a note for Cabinet.

“It in most likelihood will come up before the Cabinet tomorrow,” the official said.

The government had in January set up the high-powered panel to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP.

The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.

The secretaries’ panel may have recommended raising minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.

While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.

Around Rs 70,000 crore has been provisioned for it, the official said.

PTI

Monday, 27 June 2016

Secretaries committee submits report on 7th Pay Commission, govt to soon announce it

Babloo - 10:22:00

Secretaries committee submits report on 7th Pay Commission, govt to soon announce it

New Delhi:The government is likely to soon announce the implementation of 7th Pay Commission that would hike the salaries and allowances for over 1 crore government employees and pensioners by at least 23.5 per cent.

A Secretaries committee headed by Cabinet Secretary P K Sinha has submitted its report on the recommendations of the 7th Pay Commission which may be accepted, a financial ministry official said.

Based on the panel’s report, the Finance Ministry is preparing a Cabinet note and the issue may come up for approval by the Cabinet as early as June 29.

“Committee of Secretaries (CoS) has finalised its report on Pay Commission recommendations… We will soon (file) draft Cabinet note based on the report,” Finance Secretary Ashok Lavasa said here today.

The government had in January set up a high-powered panel headed by Cabinet Secretary to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The Pay Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP.

The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

The 23.55 per cent increase includes hike in allowances.

The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.

Sources said the secretaries’ panel may have recommended higher pay increase, with minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.

While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.

Around Rs 70,000 crore has been provisioned for it, officials said.

Lavasa said the 7th Pay Commission report will be effective from January 1.

PTI

Friday, 17 June 2016

7th Pay Commission Latest News – Increase in Basic Pay meagre but expected gains out of other compensation, a solace

Babloo - 11:30:00
7th Pay Commission Latest News – Increase in Basic Pay meagre but expected gains out of other compensation, a solace

Here are some areas of 7th Pay Commission report which are much beneficial to Central Government Employees. If Govt accepts these recommendations as such overall compensation package of Central Government Employees will be more attractive.

7th Pay Commission Latest News – Increase in Basic pay of 14.22% which is lowest increase out of any Pay Commission – However, certain Positive Aspects of Recommendations made in the 7th CPC Report mainly in the areas of Central Government Employees Welfare measures and Retirement Schemes may be solace to Central Government Employees

After a long wait of 10 years, Basic Pay of Central Government Employees has been proposed for an increase of 14.22%. In any standards, this quantum of increase can not be justified to be adequate. In fact this is the lowest increase out of any pay commission constituted in India so far. Let’s wait and see whether Empowered Committee formed by the Govt to process the present pay commission report make any positive changes to it.

Though 7th Pay Commission report failed to convince Central Government Employees in pay and allowances front, there are certain positive aspects in the recommendations which mainly relate to welfare measures, compensation and Retirement benefits. In the following paragraphs we would be discussing those which might surely improve overall Compensation package of central government employees in the long run.

7th Pay Commission’s decision to retain CPI-IW with base Year 2001=100 for determining Dear Allowance rate:
As demanded by various Central Government Employees Federations 7th CPC has proposed for retaining All India Consumer Price Index (Industrial Workers) with base year 2001=100. This means the allowance offered by govt to compensate inflation would continue to be calculated in the same as it is done presently, after deducting the quantum of DA (@ 125% for 126%) that is to be merged with pre-revised pay.
Dearness Allowance with effect from 1st January 2016 =[ (Avg of AICPI for the period from January 2015 to December 2015 – 115.76)*100/115.76] – 125 (or) 126

Interestingly, the earlier Pay Commission (6CPC) had proposed for adopting to new series of index (CPI-IW with base year 2001=100) which was later accepted by Govt. This measure needed adjustment in the calculation formula in respect of dearness allowance with effect from 1st January 2006 in the form of linking factor of 4.63 between base year 1982=100 and 2001=100
7th Pay Commission as well as Govt could justify in retaining CPI-IW with base year 2001=100 as new series of the index with base year 2015=100 is yet to be unveiled.

A new series of CPI-IW for DA Calculation means adjustments from old base year to new base year using linking factor and rounding-off which would surely put breaks on higher DA to Central Government Employees. So, 7th Pay Commission’s recommendations on retaining the present series of CPI-IW for DA purpose is welcome one.

Enhanced Central Government Employees General Insurance Scheme Coverage up to Rs. 50 lakh:

7th Pay Commission Recommended Rates of CGEGIS
Level of Employee                 
Monthly Deduction
(Rs.)
Insurance Amount
(Rs.)
10 and above
5000
50,00,000
6 to 9
2500
25,00,000
1 to 5
1500
15,00,000

Increase in Gratuity ceiling to Rs. 20 lakh with DA indexed Gratuity for the first time:

7th Pay Commission proposed that ceiling in respect of Gratuity will have to be increased from the existing Rs.10 lakh to Rs.20 lakh.

Moreover, for the first time DA indexed Gratuity viz., increase by 25 percent whenever DA rises by 50 percent has been introduced by the Commission. This measure would surely compensate the inflation factor as gratuity of Rs. 20 lakh received by a retiring employee in 2016 will never be equal to the same amount received by another in 2025.

Further, 7th Pay Commission has proposed that 20 times of monthly emoluments is to be paid as gratuity for employees who intend to retire after serving 10 year of service but before 20 years of service. Presently, 10 times of monthly emoluments is being paid for length of service between 10 years to 20 years.

Child Care Leave extended Single Male Central Government Employees also:

Child Care Leave (CCL) is granted to women employees presently for a maximum period of two years (i.e., 730 days) during their entire service for taking care of their minor children (up to eighteen years of age).
In addtion to women employees, 7th CPC has propsed that a male employee who is single, will also be entited to Child Care Leave.

House Building Advance (HBA) – Loan Ceiling increased to Rs. 25 lakh:

As far Housing loan extended by Govt to its employees is concerned the Commission proposes 34 times of Basic Pay or Rs.25 lakh OR anticipated price of house, whichever is least. This is more than three times higher than the present level.

Children Education Allowance and Hostel Subsidy increased by 1.5 times – whenever DA increases by 50%, these two reimbursements will be increased by 25%

CEA (Rs. pm) 1500×1.5 = 2250 Whenever DA increases by 50%, CEA shall increase by 25%
Hostel Subsidy (Rs. pm) 4500 x 1.5 = 6750 (ceiling) Whenever DA increases by 50%, Hostel
Subsidy shall increase by 25%

7th Pay Commission recommends Higher Grade Pay for certain Posts in Central Government Service considering the service conditions:

On the basis of nature of work and anomalies, 7th Pay Commission has recommended higher grade pay for certain cadres.
Post wise higher grade pay recommended list is given below:

Sl.No Ministry / Dept Name of the Post Present 6cpc Grade Pay (Rs.) New Grade Pay recommended by 7th Pay Commission (Rs)
1. Railways Dietitians 4200 4600
2. Railways Senior Dietitians 4600 4800
3. Railways Assistant Dietetic Officer 4800 5400 (in PB-2)
4. Andaman and Nicobar Administration Junior Radiographer 2000 2800
5. Railways Perfusionists 2400 4200
6. CGHS Dental Hygienists 2400 4200
7. Defence Russian Officers Translators 4600 5400
8. Defence Russian Senior Officers Translators 5400 6600
9. Defence Russian Editors 6600 7600
10. Central Sheep Breeding Farm Sheep Shearer cum Supervisor 1800 2400
11 Indian Postal Service Inspector 4200 4600
12. Indian Postal Service ASPOs 4800 5400
13.
National Archives of India
Assistant Archivists 4200 4600
14. National Archives of India Archivists 4600 4800
15. National Archives of India Scientific Officer 4600 4800, 5400(12 yrs)
16. All Ministries Officers in organised accounts cadres 4800 5400
17. Dr. RML Hospital Junior ECG Technician/Junior Cardiac Technician 2400 2800
18. Andaman and Nicobar Administration Junior Agriculture Assistant/Junior Soil    Conservation    Assistant 2400 2800
19. Andaman and Nicobar Administration Bus Conductors 1800 1900
20. Mines Senior Technical Assistants (STAs) 4200 4600
21.
JTA, Store Keeper, 2800 4200
22.
Assistant Store Keeper 1900 2400
23.
Electrical Supervisor 2800 4200
24
Laboratory Assistant 2400 2800
25
Machine Man, Junior Press Assistant 1800 1900
26 CBI Sub Inspector 4200 4600
27
Inspector 4600 4800
28 Railways Assistant Station Master (ASM) 2800 4200
29 Railways Commercial Clerks + Enquiry Cum Reservation Clerks (ECRCs)+Ticket Checking staff (TTEs and TCs)= Commercial and Ticketing Staff 19002400 20002800
30 Railways Accounts 4800 5400
31 Railways Chemical  and  Metallurgical  Assistants 4600 5400
32 Shipping Head Light Keeper 4200 4600
33 Shipping Navigational Assistant Gr.II 2800 4200
34 Shipping Navigational Assistant Gr.III 2400 2800
35 Shipping Light House Attendant 1800 1900
36 Statistics Director General, Central Statistics Office HAG+ L17
37 Textiles Technical Officers 4200 4600
38 Textiles Assistant Director Gr. II (Technical) 4600 4800
39 Town and CountryPlanning Organisation Planning Assistants 4200 4600
40 Central Water Commission (CWC) Senior Research Assistant 4200 4600
41 Central Water Commission (CWC) Assistant Research Officer 4600 4800
42 Central Ground Water Board (CGWB) Technical Operator (Drilling) 1800 1900
43 National Academies heads of National Academies
Apex Scale Rs.80000
44
Intelligence Bureau (IB)
ACIO-II 4600 4800
45 Intelligence Bureau (IB) ACIO-I 4200 4600

Saturday, 28 May 2016

7th Pay Commission report to be put up before Cabinet in June

Babloo - 07:09:00
Government is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel. It is is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel

7th Pay Commission report to be put up before Cabinet in June – 7th CPC implementation Notification to come at the earliest

Central government employees can expect to get some good news trickling in from government sources towards the end of June.

As per reports, the Finance Ministry is likely to table the 7th Pay Commission report to the Cabinet for approval in the last week of June.

The 7th pay panel headed by AK Mathur had recommended the minimum salary for central government employees at Rs 18,000 and maximum salary at Rs 2,50,000. As employees protested against the wage hike calling it the “lowest ever” raise, the government set up the Empowered Committee of Secretaries group to review the AK Mathur-panel’s recommendations.

The Empowered Committee of Secretaries on the Seventh Central Pay Commission is expected to soon wrap up its report on the remuneration of government employees.

Sources added that even the Prime Minister’s Office is keen on a favourable pay hike for the central government employees, so the panel is likely to recommend a minimum salary at Rs 24,000 and the highest salary at Rs 2,70,000.

Sources added that the government is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel. The payout could be substantial with salary hike and arrears adding up to a Rs 1.02 lakh crore burden on government finances.

Report add that once the report moves from the table of the empowered group of committee to the cabinet, there is no reason why the cabinet would inordinately delay it.

The Finance Ministry is keen that higher salaries reach government employees just before the festive season starting mid-August, as spurt in consumption during the festive period will have a domino effect on the economy.

Source: Zee News

Tuesday, 17 May 2016

7th Pay Commission Latest News – Issues to be addressed

Babloo - 09:33:00

It is a general view of all Central Government Employees that certain allowances, reimbursement and advances which have been abolished or restricted in 7th CPC report are to be allowed to continue
7th-CPC-Issues

7th Pay Commission Latest News – Employees of Accounts and Audit Department raises certain Common issues in respect of 7th Pay Commission Recommendations which are applicable to all Central Government Employees

7th Pay Commission Latest News – As per representation made by the employees of Accounts and Audit Department certain common issues in respect of allowances, Interest Free Advances and Interest bearing Advances

Issues related to Allowances:

House Rent Allowance:
Recommendation of 7th Pay Commission:

The Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent”

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

In para 8.7.14, the Commission took note of the link between increase in HRA and increase in house rent after implementation of recommendations of 6th CPC. There was a sharp rise in the index from the first half of 2009, immediately following 6th CPC recommendations. There is likely to a similar rise in House Rent after implementation of recommendations of 7th CPC. Hence the existing percentage of House Rent may be retained at the rate of 30 percent, 20 percent and 10 percent of the new Basic Pay for Class X, Y and Z cities respectively.

Composite Transfer and Packing Grant (CTG)

Recommendation of 7th Pay Commission:
The Commission recommended that CTG should be paid at the rate of 80 percent of last month basic’s pay. However, for transfer to and from the island territories of Andaman, Nicobar and Lakshadweep, CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
As the labour charges and cost of packing materials are continuously rising, the CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay.

Reimbursement of staying accommodation charges:
Recommendation of 7th Pay Commission:
The commission made flowing recommendations:

Level Level Ceiling for
Reimbursement (Rs.)
14 and above 7500
12 and 13 4500
9 to 11 2250
6 to 8 750
5 and below 450

For levels 8 and below, the amount of claim (up to the ceiling) may be paid without production of vouchers against self-certified claim only. The self- certified claim should clearly indicate the period of stay, name of dwelling, etc. The ceiling for reimbursement will further rise by 25 percent whenever DA increases by 50 percent. Additionally, it is also provided that for stay in Class‘X’ cities, the ceiling for all employees up to Level 8 would be Rs.1,000 per day, but it will only be in the form of reimbursement upon production of relevant vouchers.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
The main objective of the Audit Department is to carry out Audit function which entails long periods of stay out of headquarters. Consequently, officials at pay level 5 to 11 have to visit small towns (at Block/Sub-division level). For such places, as per recommendations of the 7th CPC, officials of pay level 8 and below will be entitled to the claim without production of vouchers (ie. against self-certified claim only), where as officials of the pay level 9 and above will have to produce vouchers for the similar claim.

To eradicate such anomalous situation, it is submitted that claims, as admissible upto pay level 8, may be paid without production of vouchers against self-certified claim to all pay level officials.

Reimbursement of travelling charges:
Recommendation of 7th Pay Commission:
The commission made following recommendations:

Level Level Ceiling for
Reimbursement (Rs.)
14 and above AC Taxi charges up to 50 km
12 and 13  Non-AC Taxi charges up to 50 km
9 to 11 Rs. 338 per day
6 to 8 Rs. 225 per day
5 and below Rs. 113 per day
Similar to Reimbursement of staying accommodation charges, for levels 8 and below, the claim (up to the ceiling) should be paid without production of vouchers against self certified claim only.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
In the same analogy, as mentioned against reimbursement of staying accommodation charges above, it is submitted that claims, as admissible upto pay level 8, may be paid without production of vouchers against self-certified claim to all pay level officials.

Family Planning Allowance:-
Recommendation of 7th Pay Commission:
The Pay Commission has recommended to abolish the Family Planning Allowances

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
This is an incentive for promoting small family norms and therefore, it needs to be continued.

Interest free advances:
Medical Advance:
Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of Medical Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
As per the existing practice, medical advance is paid to an employee to the extent of 90% of the estimated cost of treatment in case of treatment of self and dependents. Cost of treatment for illness particularly of critical/life threatening ailments, such as heart transplant/ cancer/ kidney transplant etc., even under CGHS rules, is extremely expensive. It is also pertinent to note that many hospitals even in emergent situations insist on advance payment before commencing treatment/surgery. It is very difficult for a low paid employee such as MTS/LDC/UDC etc or even for group ‘B’ and ‘A’ officers to make available large amounts required for medical treatment. Without medical advance, an official will have great difficulty in getting proper/appropriate medication.
Therefore, it is submitted that medical advance may be continued with as per existing practice.

TA Advance:
Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of TA Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
The main function of IA &AD is auditing of Central/State Government/ PSUs etc. These auditee units are spread across the states down to the block/Panchayat level. In order to discharge audit responsibility, touring is a continuous requirement. It is not an occasional tour for short period, expenditure of which can be met out by the individual and reimbursement claimed subsequently. The officials have to be on tour continuously for upto a quarter (i.e 03 months) or even more.

For an official at pay level 6(Senior Auditor), as per the recommendations of the 7th CPC, the tour allowance for a day works out to Rs. 1770/- (Rs. 750 for accommodation+225 for travelling +Rs. 800 for food bills) and for a month it would be Rs. 53250/-. Besides, he has to incur expenditure for to and fro (i.e Hqrs. to field office and back) train/ bus fare. Monthly salary of a pay level 6 employee, as per recommendations of 7th CPC is Rs. 35400/-. As is clearly brought out, the likely monthly expenditure on tour will be significantly more than the employees’ monthly salary.

Therefore, advance is necessary to defray tour expenditure for performing official duties. This will create huge administrative issues in the department and adversely impact the Audit functions.
In view of the above, TA Advance, requires to be continued and paid as per extant provisions.

LTC Advance:
Recommendation of 7th Pay Commission:

The pay Commission has recommended abolition of LTC Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

Under LTC facility the expenses incurred on travel to visit the destination is reimbursable. Advance upto 90% of expenses on travel to visit the destination place is admissible. This amount serves as great help to the employees to undertake the journey in arranging train/air tickets. Without this advance, the employees will find it difficult to purchase train/air tickets for his family Besides travelling expenses, an official has to incur expenditure on account of Boarding and lodging/local travel also.

As per the recommendation of 7th CPC, officials of pay level 05 to 08 are entitled to travel by train. The travel tickets for family of four will cost more than Rs. 18000/- for a journey from Delhi to Thiruvananthapuram. Further, for level 9 and above the return tickets in economy class for the same destination i.e. Delhi to Thiruvananthapuram will cost more than Rs. 2 lakh.

A government official cannot afford such a huge amount to spent upfront for performing journey for availing home town LTC or All India LTC. Hence LTC advance is required to be continued as per extant provisions.

Bicycle Advance, Warm Clothing Advance:
Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of these Advances.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?

These advances may continued to be paid as per existing rules as these are admissible only to low paid employees upto Grade pay of Rs. 2800 /- (Level 5)
Festival advance, advance in the event of natural calamities like Flood, Drought, Cyclone etc.

Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of these Advances.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
These advances may continue to be paid as per existing rules as these interest free advances are payable to Group ‘B & C’ employees as a welfare measure.
Advance of TA to a family of a deceased Govt. employee

Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of this Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
This advance may continue to be paid as per existing rules as this helps the family of a deceased Govt. employee to cope with immediate expenses for travel to their place of settlement.

Interest Bearing Advances:-
Motor Car/Motor Cycle Advance.
Recommendation of 7th Pay Commission:
The pay Commission has recommended abolition of this Advance.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
The Pay Commission has abolished the Motor Car/Motor Cycle Advance on the plea that there are several schemes available in market. There are several schemes in the markets for House Building Advance also. However, the Pay Commission has not only recommended to continue with HBA but also proposed to increase the ceiling. Therefore, the plea of the commission to discontinue MCA on the basis that schemes for purchase of vehicles are available in the market does not hold good.

Further, several documentation/guarantees are required for seeking the said advances from the market. As it is convenient and safe for a Government Servant to avail such advances from the office without any hassles, these interest bearing advances may be continued as per the extant provisions.

Fixed Medical Allowance (FMA) to Central Government Pensioners
Recommendation of 7th Pay Commission:
The Commission has maintained status quo of the Fixed Medical Allowance which is presently paid @ Rs. 500/- per month.

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
The costs have increased for medicines, consultations fees and Pathological Tests required for day to day medical treatment. This has risen at a much steeper rate than that of the General Price Index. A large number of pensioners are residing in remote areas or villages having no access to CGHS dispensaries and as such are wholly dependent on the paltry amount of Fixed Medical Allowance for day to day treatment.. Therefore it needs to be revised to at least Rs. 2000/- per month.

Modified Assured Career Progression Scheme (MACPS) :
Recommendation of 7th Pay Commission:
Assured Career Progression was introduced in 1999 with a view to grant at least two financial up gradations at an interval of 12 and 24 years where officials are stagnating for want of promotion. It was further modified to 03 financial up gradations on the recommendations of the 6th CPC. However, the 7th CPC recommended continuing with the same without any change. Also the bench mark has been increased from ‘Good’ to ‘ Very Good’

What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
There should be at least four financial upgradations in entire service career of an employee at regular interval of 8 years. Hence, the MACPS may be granted to an employee after completion of 8, 16, 24 and 32 years of service.

Further, the bench mark for financial up gradation may be continued as per the existing practice – i.e. the bench mark prescribed for the post for promotion.

Transport Allowance (TPTA)
Recommendation of 7th Pay Commission:

The 7th CPC has just revised the Transport Allowance by merging 125% of DA with the existing rate of transport allowance. The revised rates are as mentioned below:

Pay level Proposed  (Higher TPTA Cities) Proposed  (Other TPTA Cities)
9 and above 7200+DA 3600 +DA
3 to 8  3600+DA 1800 + DA
1 and 2 1350+DA 900 + DA
What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
The following is proposed for the revised Transport Allowance (TPTA)
Pay level Proposed  (Higher TPTA Cities) Proposed  (Other TPTA Cities)
9 and above 10000 + DA 5000 + DA
3 to 8  5000 + DA 2500 + DA
1 and 2 2500 + DA 1250 + DA

Child Care Leave (CCL):
Recommendation of 7th Pay Commission:
The 7th CPC has proposed that CCL should be granted at 100 percent of the salary for first 365 days, but at 80 percent of the salary for the next 365 days. However, CCL has been extended to single parent also.
What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
It is proposed that the CCL be paid at 100 percent of salary for the entire period.

Children Education Allowance (CEA):
Recommendation of 7th Pay Commission:
The Commission has recommended CEA @ Rs. 2250/- per month and Hostel Subsidy @ Rs. 6750/- per month.
What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
Keeping in view the steep rise in tuition fees, cost of stationery, Books, Uniform etc. the CEA and Hostel Subsidy may be increased @ Rs. 3000/- and @ Rs. 8000/- per month respectively.

Special Casual Leave (SCL):
Recommendation of 7th Pay Commission:

SCL is granted to employees to cover their absence from duty for various occasions like sports events, cultural activities, participation in Republic Day Parade, voluntary blood donation, Trade Union meetings, etc. Full pay is granted during SCL and it can be sanctioned with retrospective effect also.
The Pay Commission has expressed its concern at the widespread use of SCL as a means of getting away from duty. However, because of the extensive scope and case specific nature of this leave, no concrete recommendations have been made.
It has suggested that the government may, however, consider the following: (a) Review the purposes for which SCL is presently granted.

(b) Limit the number of purposes for which an employee can be granted SCL in a year.

(c) Limit the total number of days that an employee can be granted SCL in a year.
What is to be changed / taken care of in this issue on implementation of 7th Pay Commission Report ?
Since SCL is granted to employees to cover their absence from duty for various occasions like sports events, cultural activities, participation in Republic Day Parade, voluntary blood donation, Trade Union meetings/ casting votes in their constituency, it may be continued to be granted as per existing practice.

Source: Indian Accounts and Audit Department
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