Thursday, June 30, 2016

7th Pay Commission highlights: All you want to know about report in graphic detail

After finding mention in FM Arun Jaitley's Budget speech, the Prime Minister Narendra Modi led Cabinet is expected to pass the 7th Pay Commission report recommendations today including a bigger hike in basic pay than the nearly 15% recommended by the 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. Among other things, as per the commission, interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs 25 lakhs from the present Rs 7.5 lakhs. After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent. The 7th Pay Commission report may become effective from January 1. Here are the 7th Pay Commission report highlights:

1. Recommended Date of implementation: 01.01.2016

2. Minimum Pay: Based on the Aykroyd formula, the minimum pay in government is recommended to be set at Rs 18,000 per month.

3. Maximum Pay: Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

4. Financial Implications:

a) The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, over the expenditure as per the 'Business As Usual' scenario. Of this, the increase in pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore and increase in pension would be Rs 33,700 crore.

b) Out of the total financial impact of Rs 1,02,100 crore, Rs 73,650 crore will be borne by the General Budget and Rs 28,450 crore by the Railway Budget.

c) In percentage terms the overall increase in pay & allowances and pensions over the „Business As Usual‟ scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent.

d) The total impact of the Commission‟s recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay+Allowances+ Pension) to GDP compared to 0.77 percent in case of VI CPC.

5. New Pay Structure: Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.

6. Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.

7. Annual Increment: The rate of annual increment is being retained at 3 percent.

8. Modified Assured Career Progression (MACP):

a. Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”.

b. The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service.

c. No other changes in MACP recommended.

9. Military Service Pay (MSP): The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows:
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10. Short Service Commissioned Officers: Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. They will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute.

11. Lateral Entry/Settlement: The Commission is recommending a revised formulation for lateral entry/resettlement of defence forces personnel which keeps in view the specific requirements of organization to which such personnel will be absorbed. For lateral entry into CAPFs an attractive severance package has been recommended.

12. Headquarters/Field Parity: Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.

13. Cadre Review: Systemic change in the process of Cadre Review for Group A officers recommended.

14. Allowances: The 7th Pay Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.

(a). Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance. The current Siachen Allowance per month and the revised rates recommended are as follows:
This would be the ceiling for risk/hardship allowances and there would be no individual RHA with an amount higher than this allowance.

(b). House Rent Allowance: Since the Basic Pay has been revised upwards, 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.

(c). In the case of PBORs of Defence, CAPFs and Indian Coast Guard compensation for housing is presently limited to the authorised married establishment hence many users are being deprived. The HRA coverage has now been expanded to cover all.

(d). Any allowance not mentioned in the report shall cease to exist.

(e). Emphasis has been placed on simplifying the process of claiming allowances.

15. Advances:

(a). All non-interest bearing Advances have been abolished.

(b). Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs 25 lakhs from the present Rs 7.5 lakhs.

16. Central Government Employees Group Insurance Scheme (CGEGIS): The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:

17. Medical Facilities:

(a). Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended.

(b). Meanwhile, for the benefit of pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis.

(c). All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.

18. Pension: The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.

The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix.
This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent.In the case of defence forces personnel this amount will include Military Service Pay as admissible.

Fifty percent of the total amount so arrived at shall be the new pension.
An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension.The pensioner will get the higher of the two.

19. Gratuity: Enhancement in the ceiling of gratuity from the existing Rs 10 lakh to Rs 20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.

20. Disability Pension for Armed Forces: The Commission is recommending reverting to a slab based system for disability element, instead of existing percentile based disability pension regime.

21. Ex-gratia Lump sum Compensation to Next of Kin: The Commission is recommending the revision of rates of lump sum compensation for next of kin (NOK) in case of death arising in various circumstances relating to performance of duties, to be applied uniformly for the defence forces personnel and civilians including CAPF personnel.

22. Martyr Status for CAPF Personnel: The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel.

23. New Pension System: The Commission received many grievances relating to NPS. It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.

24. Regulatory Bodies: The Commission has recommended a consolidated pay package of Rs 4,50,000 and Rs 4,00,000 per month for Chairpersons and Members respectively of select Regulatory bodies. In case of retired government servants, their pension will not be deducted from their consolidated pay. The consolidated pay package will be raised by 25 percent as and when Dearness Allowance goes up by 50 percent. For Members of the remaining Regulatory bodies normal replacement pay has been recommended.

25. Performance Related Pay: The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes.

26. There are few recommendations of the Commission where there was no unanimity of view and these are as follows:

(i). The Edge: An edge is presently accordeded to the Indian Administrative Service (IAS) and the Indian Foreign Service (IFS) at three promotion stages from Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and the NFSG. is recommended by the Chairman, to be extended to the Indian Police Service (IPS) and Indian Forest Service (IFoS).Vivek Rae, Member is of the view that financial edge is justified only for the IAS and IFS. Dr. Rathin Roy, Member is of the view that the financial edge accorded to the IAS and IFS should be removed.

(ii). Empanelment: The Chairman and Dr. Rathin Roy, Member, recommend that All India Service officers and Central Services Group A officers who have completed 17 years of service should be eligible for empanelment under the Central Staffing Scheme and there should not be “two year edge”, vis-à-vis the IAS. Shri Vivek Rae, Member, has not agreed with this view and has recommended review of the Central Staffing Scheme guidelines.

(iii). Non Functional Upgradation for Organised Group ‘A’ Services: The Chairman is of the view that NFU availed by all the organised Group `A‟ Services should be allowed to continue and be extended to all officers in the CAPFs, Indian Coast Guard and the Defence forces. NFU should henceforth be based on the respective residency periods in the preceding substantive grade. Shri Vivek Rae, Member and Dr. Rathin Roy, Member, have favoured abolition of NFU at SAG and HAG level.

(iv). Superannuation: Chairman and Dr. Rathin Roy, Member, recommend the age of superannuation for all CAPF personnel should be 60 years uniformly. Shri Vivek Rae, Member, has not agreed with this recommendation and has endorsed the stand of the Ministry of Home Affairs.

(Source- Via Gp e-mail from Supp Account Sattu Sharma of Triservice veterans)

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(sOURCE- FROM FACEBOOK Ac of Sreenesh Kumar)

Reform the bureaucracy - Cadreism in government offices is worse than casteism in society

Jun 30 2016 : The Times of India (Hyderabad)

Bureaucracy is a hated word the world over, and more so in India. Perhaps, when Prime Minister Narendra Modi talked of “minimum government, maximum governance“, he had in mind the recalcitrant bureaucracy which does not serve the people but rules over them.Sometimes even ministers bewail their helplessness at the hands of babudom. Recently Nitin Gadkari, Union minister for road transport and highways, rued that 265 projects worth Rs 75,000 crore are held up in the pipeline due to bureaucratic wrangling.The World Bank's 2016 edition of ease of doing business rankings placed India at 130th position in a list of 189 countries ­ it ranks below even some Saarc countries. New Zealand issues clearances in just half a day on average and Singapore takes 26 days to issue a construction permit ­ while India takes 147 days. Other data are equally damning. Jeff Immelt, CEO of GE, said last year that reforming the bureaucracy and enhancing its bandwidth was the key challenge for the Modi government. This insensitive and unre sponsive bureaucracy has its genesis in British rule. District administrators were called collectors as their primary job was to extort taxes from colonial subjects. They were known for their pompous and lordly lifestyle. Mahatma Gandhi published an 11 points demand before launching his salt satyagraha, one of which included reducing the salaries of bureaucrats.
Jawaharlal Nehru wrote, in his autobiography , “What of New Delhi today with its Viceregal pomp and pageantry , and the provincial Governors with all their ostentation? And all this with a background of abject and astonishing poverty .“ He devoted one full chapter to describing the abominable role played by the babus. Countering the accolades showered on ICS for its so called ability and efficiency he wrote, “If the test is the wellbeing of the Indian masses, they have signally failed, and their failure becomes even more noticeable when one sees the enormous distance that separates them in regard to income and standards of living from the masses they are meant to serve, and from whom ultimately their varied emoluments come.“
However, Nehru could not bring about any major reforms in the bureaucracy during his 17 years long prime ministerial tenure. In fact, in an interview to a foreign correspondent shortly before his death, on being asked what was the one remorse he had, he said that he failed to reform the bureaucracy . Decades later his grandson Rajiv Gandhi had this to say as prime minister: “We have government servants who do not serve but oppress the poor and the helpless, who do not uphold the law but connive with those who cheat the state and whole legions whose only concern is their private welfare at the cost of society.“
IAS, the new avatar of ICS, continues to wield autocratic power. In popular parlance, it is expanded as “I Am Supreme“.The original sin was committed by the educated Indian elites who wanted a share in it and succeeded, as Indians were allowed to take the entrance exam and join ICS. Thus, Satyendranath Tagore became the first Indian ICS officer. The colonial structure of bureaucracy was inherited after Independence in totality .
The tragic circumstances under which India was ushered into freedom became a boon for them. The country was beset with unprecedented challenges.Communal violence gnawed at the body politic and the integration of over 560 princely states was a daunting task with states threatening to secede.India had to brave it out, and Sardar Patel emerged as the champion of bureaucrats, calling them the steel frame.
However, the babus did not live up to the Sardar's hopes.This steel frame has been rusted and it is high time government infused fresh blood by lateral entry into the bureaucracy at the highest levels. It won't be easy .IAS will ensure that new entrants fail miserably , but government must pick up the gauntlet. The ideal solution may be to disband all cadres and think of some innovative alternatives.
Cadres are castes in a new garb and cadreism in government offices is more rabid than casteism in society . Bureaucrats are status quoists and elitists, wholly unsuited for the service of the masses.
The writer is an author and columnist

(Source- TOI)

Rs 85K crore bonanza for 1 cr central staff & pensioners - Pay Hike Gets Nod, Allowances To Be Reviewed

A big pay and pension hike that is expected to benefit 47 lakh central government employees and 53 lakh pensioners and is also expected to spur demand and act as a stimulant for the economy was cleared by the Union Cabinet on Wednesday.
After taking into account dearness allowances at prevailing rate, the salary, pension of all government employees, including pensioners, will increase by at least 14.29% as on January 1, 2016 and could go up to 23% in upper brackets. The fiscal impact of the implementation of the pay panel's recommendation would be Rs 72,800 crore every year and in the current fiscal year, it is expected to be Rs 84,933 crore. This inclu des the outgo on arrears with the implementation date being January 1, 2016. The government said it has planned for the outgo.
The government approved recommendations of the Seventh Pay Commission on pay and pension but deferred proposals on allo wances that will be examined by a committee headed by finance secretary Ashok Lavasa.
Pending the panel's decision, allowances will continue at existing rates. The pay commission called for scrapping of a large number of allowances but employee unions had urged the government to review these recommendations.
“The recommendations of the Pay Commission with respect to pay and pension, have been accepted by and large by the government. “And those recommendations will be implemented with effect from January 1, 2016, and the arrears would also be paid in this year,“ finance minister Arun Jaitley said.
The minimum pay has been increased from Rs 7000 to 18000 per month. Starting salary of a newly recruited employee at lowest level will now be Rs 18000 whereas for a Class I officer it will be Rs 56,100. For a secretary level officer the salary will increase from Rs 90,000 to Rs 2.25 lakh and for the cabinet secretary at Rs 2.5 lakh a month.
The government has accepted the Pay Commission recommendation of a fitment factor of 2.57 (the starting pay will be 2.57 times what was prevailing on 01.01.2006) which will be applied across all pay scales. Gratuity ceiling has been raised from from Rs 10 to 20 lakh.
The Pay Commission had examined a total of 196 existing allowances and recommended that 51of them be abolished and 37 should be subsumed.
Lavasa said there was also a recommendation on abolishing interest bearing allowances. He said the government has accepted the recommendation of abolishing advances on motor cars and motorcycles but interest bearing house building loans and computers will continue.The ceiling on the house building loan has been raised to Rs 25 lakh from Rs 7.5 lakh which is expected to provide a huge boost to the housing sector.
In order to ensure that no hardship is caused to employees, four interest free advances for medical treatment, TA on tour and transfer, TA for family of deceased employees and LTC have been retained.All other interest-free advances have been abolished.


Military upset as govt stays cold on their demands

The 13-lakh strong armed forces were left largely disappointed on Wednesday with the Cabinet decision to implement the recommendations of the 7th CPC 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 long-standing concerns over their eroding “status, parity and equivalence“ 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 government, on its part, has this time drawn up separate pay matrices for civilians, defence personnel and military nursing service. It said “further improvements“ had been approved in the defence pay 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, when successive pay panels traditionally recognised their parity with the IPS, they said.
Other decisions approved by the Cabinet that impact defence and CAPF personnel included: --Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
(Source- TOI)

Wednesday, June 29, 2016

7th Central Pay Commission: Key facts that all government employees must know

Last Updated: Wednesday, June 29, 2016 - 19:17

7th Central Pay Commission: Key facts that all government employees must know Zee Media Bureau
New Delhi: The Union Cabinet chaired by the Prime Minister Narendra Modi on Wedneasday approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits.   
It will come into effect from January 1, 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. 

Here are the key  recommendations approved by the Cabinet:

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. After taking into account the DA at prevailing rate, the salary/pension of all government employees/pensioners will be raised by at least 14.29 % as on 01.01.2016.
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 :
-Gratuity ceiling enhanced from Rs.  10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
- 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.
-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.
-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.
-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.
(Source- Zee News)




3,Chelmsford Road, New Delhi – 110 055
Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers Federation (ITF)
No.IV/NJCA(N)/2014/Part II
Dated: 29-06-2016
The General Secretaries of
Affiliated Unions of NFIR
Sub: 7th CPC Recommendations – reg.
Cabinet’s decision on minimum wage is totally disappointing as no improvement has been made. Equally in multiplier factor, there is no improvement.
As already decided, the JCM constituent organizations will be compelled to go on strike.
NJCA will meet very soon (either today or tomorrow) to take stock of the situation and issue directions.
Yours fraternally,
General Secretary
Source: NFIR

7th Pay Commission: Defence Minister Manohar Parrikar reacts to discontent within armed forces regarding salary & pension hike

June 29, 2016

New Delhi, June 29: Union Cabinet has cleared the revised recommendations of 7th Pay Commission. The final CPC report has reportedly disappointed the armed forces, as the Empowered Committee of Secretaries has failed to incorporate their demands. Defence Minister Manohar Parrikar has attempted to reconcile the voices of dissent propping up.
“We had pushed forward their demands with full force. Some of them have been accepted. Some haven’t been taken. The Finance Ministry will look into it,” he said.
Former Chief of Army Staff, General Roy Chowdhury lashed out at the Secretaries Panel for failing to do justice with the defence personnels. The Uniform Pay Matrix has not been taken into account. The ‘Allowances’ have not been brought at par with civilian employees. The much-awaited demand of parity in disability allowance have also been ignored.
The various anomalies in fixation of pay and pensions has created a discontent within the armed forces and ex-servicemen. By not implementing the Uniform Pay Matrix, government has allowed the Defence Pay Matric to be restricted to 24 pay levels, whereas, the bureaucratic pay level is 40. This not only stagnates the salary hike after 31 years of service, but decreases the pension amount by at least Rs 20,000 as compared to civilian employees.
Similarly, the parity in allowances between uniformed forces and civilian employees was a long pending demand. A CAPF DIG posted Leh gets Rs 57,000 in form of allowances. But a brigadier gets only Rs 17,000. The disability pension for Additional Secreatry is Rs 60,000, but for a Lt General, it is only Rs 27,000.


MoD notifies all headquarters, ex-civilians welcome move 

Retired defence civilians to have canteen facilities
Former defence civilians will be authorised to get groceries, but not liquor. PIC FOR REPRESENTATIONAL PURPOSES
Even as the Ministry of Defence (MoD) struggles to resolve the long-pending one rank one pension (OROP) issue, there is good news for around 3.70 lakh retired defence civilians in the country. The MoD has finally agreed to extend Canteen Stores Department (CSD) facilities to former defence civilians, which they earlier had to forego after retiring. The integrated headquarters of MoD (Army) has shot off a notice in this regard to all headquarters, including seven army commands in the country. The issue has been under consideration for many years. 

According to the notice, retired employees from the Defence Audit Department, Executive Officer Cantonment Board, Hindustan Aeronautics Ltd personnel retired from Air Force Station Hyderabad, Jorhat, Air Force Academy, Dundigal (Hyderabad) and Air Force Station Yelahanka (Bangalore), Indian Defence Accounts Services, Secretariat Border Roads Development Board and HQ Director General Roads, retired employees of CSD and Military Engineering Services (MES) employees will be able to avail of the CSD facility. 

"They will be entitled only to groceries. No liquor will be authorised," the notice mentions. + Though defence civilians are central government employees, paid out of the defence estimate and part of the MoD, they do not come under the purview of the Armed Forces Act. 

An army source said, "They are primarily governed by central government employment rules as applicable to employees of other ministries. They are employed at administrative and technical posts in various defence establishments, including service HQ, defence accounts, MES, ordnance factories, defence estates, etc." 

Welcoming the move, a senior official from HAL Bangalore, requesting anonymity, told Mirror, "It is good news for us as one's source of income is limited after retirement. Even getting groceries is a big leap." "Each concerned department should appoint an officer authorised to countersign and promulgate orders and forward details to the Quartermaster General's branch," the notice mentioned. 

The sale of four-wheelers through CSD for defence civilians is, however, restricted to officers. "Defence civilians also enjoy several other benefits and perks applicable to armed forces personnel while posted in field and hard areas," a source informed.

(Source- Pune Mirror)

Tuesday, June 28, 2016


SCOVA Meeting was held yesterday 27th Jun 2016. The Hon'ble Minister Dr Jitendra Singh presided in the second half. Prior to his arrival Shri C Vishwanath, the new Secy (Pensions) presided. Senior representatives of Ministries together with Finance Expenditure, Defence and CGDA were present.

Following was discussed:


Though CGDA representatives indicated that all PPO's after 6th Pay Commission had been issued, this was refuted both by AVM Chopra representing AFA and the undersigned. However it was explained that the frequency of orders issued by MoD and the extra paperwork created by PCDA(P) itself was causing considerable backlog.

The following was also brought to the notice of Secy (Pensions)

1.1 That orders issued were not composite covering all types of pensions.

1.2. Incorrect interpretation of orders.

1.3. Opaque method of functioning of PCDA(P) with no replies to queries.

1.4 Issue of unnecessary Annexure's to be filled by JCO's and Other Ranks thus creating further delays in disbursements to them.

1.5 Non-Digitalisation of PPO's and resorting to PPO's through post. Recommended all PPO's to be digitally sent to Record Offices in the case of JCO's and Other ranks and correspondence/queries in regards such personnel  resorted to over mail. Record Offices needed to be encouraged to correspond or forward PPO's received to CPPC Units.

1.6.Assistance  of Postal Authorities not resorted to in affixing orders issued or finding out whereabouts of pensioners.

1.7. Pensions of widows of those that die delayed by over 4 months instead of being instantaneous.
1.8 Denying pensions approved by authorities to retired personnel unilaterally.

2.Other issues concerning Pensions etc.

Not receiving a satisfactory response from the Jt.CDA present, instructions were immediately issued which were subsequently approved by the Minister that a meeting would be held early next week with CGDA, Jt Secy ESW and other government authorities responsible with DIWAVE and AFA being present. We requested presence of IESL also.


Ministry of Health has undertaken the task of insurance for pensioners with CGHS and others. We requested that PROSTHESIS to Orthopedically handicapped should also be included for Prosthesis. This would greatly assist non government disabled as well and lower costs. The same is available abroad.

This suggestion  was agreed to and a note on the same was requested.


According to the Ministry of Defence note, the proposal had been rejected. We emphasised that The said examination of our proposal was incorrect and on wrong parameters. Whereas the proposal was examined with all 50000 disabled to be covered our proposal was only for the DISABLED INVALIDED OUT WIDOWS and no other.These numbered approx 4500. The Secy (pensions) immediately indicated where 4500 or 10000, it did not matter and ordered re-examination of the proposal. This suggestion/proposal had been rendered after observing some widows begging outside places of religious worship. 

Mod Representatives could not respond nor CGDA. Immediately The senior representative from Min of Fin (Expenditure) present, informed the chair, that if this proposal was sent to them, they would clear it immediately.

The Re-examination of the proposal was ordered.

5. EXTENSION OF BENEFIT of OM DATED 28-01-2013 (Revision of Disability Pension w.e.f 1-1-2006

We informed the chair that though MoD had issued the orders, the payments had been indirectly stopped by PCDA(P) because of an ANNEXURE required to be filled by JCO"s and OTHER RANKS. It was pointed out that in every order which at present was at a frequency of one per quarter, the same ANNEXURE was being requested for. Thus no one had benefitted so far. 



It was pointed out that the orders were defective in as much that JCO's and Other Ranks would suffer as they were being brought down from Maximum to Minimum of Rank. Further orders for Defence Civilians had been published the very next day whereas no orders had been issued for the Defence Pensioners so far.

On a request by Secy (Pensions) for a suggestion in regards JCO's and Other ranks, we suggested that they be retained at Maximum of Pay.


During the discussion in this regard, we brought out that Civilian Defence Employees of IMA and RIMC had no medical cover and they should be included. This was noted.


We pointed out that whilst implementing OROP orders, THE PCDA(P) had  reduced the service element of DISABLED WAR VETERANS INVALIDED OUT OF SERVICE AND THEIR WIDOWS  unilaterally and arbitrarily  reduced their entitlements to actually rendered service. This had resulted in recovery and no benefit to them. We added that Capt's and Major's had been equated to the Hony Lts or Hony Capts. An incorrect assumption.

This was noted and would be discussed in the special meeting to be held with CGDA and JS (ESW) and other present.

Col H N Handa
Disabled War Veteran's (India)
C6-18/1 Safdarjung Development Area,
Behind Haus Khas Telephone Exchange,
New Delhi 110016
Tele: 011-41315492
Fax: 011-41315492/0124-4051572
Mob: +919811920190/+919811199367

(Source- Via e-mail from Vet Col SS Sohi)