Need 10 Years gap between 6th to 7th pay commission.

GOVERNMENT OF INDIA
MINISTRY OF  FINANCE
RAJYA SABHA

UNSTARRED QUESTION NO-3148

ANSWERED ON-23.04.2013

Setting up of Seventh Pay Commission

   3148 .    SHRI SUKHDEV SINGH DHINDSA

   (a)     Whether Government proposes to set up the Seventh Central Pay Commission for Central Government Employees to neutralize the effects of soaring inflation;

   (b)     if so, by when it is likely to be set up; and

   (c)     if not, the reasons therefor?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)

   (a) to (c) : The recommendations of the 6th Central Pay Commission were given effect to from 1.1.2006. Generally, there has been a gap of a minimum 10 years between two successive Pay Commissions. Therefore, no proposal to constitute the Seventh Central Pay Commission is at present under consideration.

Source:www.rajyasabha.nic.in

Early Decision – No need to pay Arrears on DA and 7th CPC.

   Decision in the right time –will avoid more funds to allocate as arrears!

   At last, the most eagerly awaited announcement of additional dearness allowance has been declared by the cabinet, due from January 2013 to Central Government employees and Pensioners.

   In general the announcement of dearness allowance has been made in the month of March every year. But this year this has been declared in the month of April. Though it was announced after some delay, there is no any loss, as the dearness allowance hike has to be paid with effect from 01-01-2013.

   Before this announcement, there was a rumor that 50% dearness allowance will be merged with basic pay or otherwise dearness allowance will not be hiked, but the cabinet committee decision cleared these doubts.

   Employees and Pensioners will get one more month arrear from January to April. Government has to allocate more funds as arrear due to delay.

   If the decisions concluded in the right time, there will be no chance to allocate more fund for the payment of arrears and also prevent practical problems to accounting staff.

   Even the National anomaly committee, after six years it was formed, has not solved all the problems raised due to the implementation of 6 CPC.

   After the implementation of 6CPC in 2008 with effect from 01.01.2006 , arrears had to be paid to Central Government servants. To avoid the additional financial burden, the Central Government decided to pay the arrears’ in two installments in 2008 and 2009. For this, government had to allocate more fund from budget. It can be avoided by early constitution of 7th pay commission.

   So, to find the solution to all including disbursing authorities, setting up of 7th Central Pay Commission at early stage to implement in the right time, the same is demanding by the central trade unions and associations.

   Every decision in the right time –will avoid more funds to allocate as arrears!

Source:http://www.govtempdiary.com/2013/04/early-decision-no-need-to-pay-arrears-on-da-and-7th-cpc/

No merger of D.A. but seventh pay commission likely this year.

   According to our sources in New Delhi, there is no chance of any merger of Dearness Allowance with basic pay as demanded by the associations. But the Government is considering the formation of seventh pay commission.

   The seventh CPC is scheduled to be effective from 1.1.2016 and if it is formed this year, there will be ample time to finalize it's recommendations. Moreover, if it is not effective from an earlier date, the Govt. will be free from any burden of paying arrears, which may adversely effect the fiscal situation.

   Most significantly, in the eve of general election, the Govt. may spread a "feel good" situation among the employees without having to pay an extra penny from the exchequer.

   In the other hand merging D.A. with basic pay will lead to a considerable expense and as there is definite negative recommendation of sixth CPC in this respect, Govt. can easily deny this demand. After formation of seventh CPC, if the ruling party fails to come back in the corridors of power, the entire liability will have to be borne by the new Govt. So, it's a win win situation of the ruling party and most likely, it will be announced in the later half of the year.

Source:http://paycommissionupdate.blogspot.in/2013/04/no-merger-of-da-but-seventh-pay.html#more

Central Minister in favour of seventh pay commission Ajay Maken backs cry for seventh pay panel

Central Minister in favour of seventh pay commission
Ajay Maken backs cry for seventh pay panel

   New Delhi : With a little over a year to go before the next general election, the demand for a Seventh Pay Commission has started to gather momentum. Union housing and urban poverty alleviation minister Ajay Maken has taken the lead in endorsing the Central government employees' request for setting up of the new pay panel, citing the erosion of real wages due to high inflation since implementation of the Sixth Pay Commission's recommendations.

   In a letter addressed to Prime Minister Manmohon Singh, Maken underlined how every pay panel since the Second Pay Commission, barring the Sixth Pay Commission, were set up in the third year of the decade. "We are again in the third year of the ongoing decade and Central government employees are justifiably looking forward to the Seventh Pay Commission," he said.

   Recalling that it was under Singh that the last pay panel was set up in 2005, after the NDA government failed to do so in 2003, Maken, in the communication dated March 14, requested that a decision be "taken on priority" for constitution of the Seventh Pay Commission. A notification for constitution of the 7th Central Pay Commission is the need of the hour, which is bound to have bearing upon about 20 million employees," he said.

   Maken concluded by emphasizing that setting up of the new pay panel was in "larger interest of government employees as well as the (Congress) party".

Courtesy: The Times of India

SEVENTH PAY COMMISSION MUST BE SET UP FORTHWITH

   The recent statement of the Minister concerned in the Parliament, that the Govt. does not propose to set up the seventh Pay Commission at this stage is most unjustified and frustrating for the Govt. employees.
 
   Fifth Pay Commission had recommended for a Pay Revision after every five years instead of the past practice to set it up after 10 to 13 years. But the Govt. did not accept this recommendation.

   The Fifth Pay Commission also recommended for Merger of DA after it crossed 50%. Govt. accepted the same and belatedly implemented it from April 2004.

   But the Sixth Pay Commission did not favour even the Merger of DA after it crossed 50% and the Govt. obvious followed suit and did not Merge the same when it crossed 50% in 1-1-2011 - in spite of the demand by all concerned.

   As such, the existing Pay and Pension structure have lost all the relevance and is continuously eroding due to heavy inflation and defective system of compilation of Price Index - which itself is out dated due to the changed economic scenario and requirements of the Industrial Worker of the Country.

   All this makes it essential that the Seventh Pay Commission be set up early to compensate for the erosion of real wages and to remove the serious Anomalies of Sixth CPC Report - which the Govt. and the Anomalies Committee have failed to address as well as to bridge the vast gap of wages between the Government employees and those of the Corporate Sector etc. all which are having a very demoralising effect amongst the Govt. employees and Pensioners.

Er. HARCHANDAN SINGH
General Secretary, IRTSA.

Source:http://www.irtsa.net/pdfdocs/Seventh_Pay_Commission_Must_Be-Set_Up.pdf

Not considering proposal to set up 7th Pay Commission: Government

   NEW DELHI: Admitting that there have been demands for setting up of 7th Pay Commission, government said that no such proposal is under consideration for such exercise, which would have been resulted in upward revision of centre's over 85 lakh employees' and pensioners' pay scales.

   "The recommendations of the previous .. 6th Central Pay Commission were given effect to from January 1, 2006. Therefore, at present no proposal to constitute the 7th Pay Commission is under consideration of the government," Minister of State for Finance Namo Narain Meena told Lok Sahba on Friday in a written reply.

   Meena further said, "There have been some demands received for setting up of the 7th Central Pay Commission. In the past, there has generally been a gap of a minimum 10 years between two successive Pay Commissions.

   According the information available, the central government employees had also gone for a day long token strike for their various demands including setting up of 7th Pay Commission in December last year.

   At present the number of central government employees and pensioners are about 50 lakh and 35 lakh respectively.

Source:www.economictimes.indiatimes.com

Trade Union Demanded: Constitution of the seventh Pay Commission to be announced in the Budget.

   Pressing for a people-friendly Budget for 2013-14, trade unions today urged Finance Minister P Chidambaram and his team to announce the constitution of the seventh pay commission along with raising the income tax threshold to Rs 5 lakh in a year from the present Rs 2 lakh.

   The demand was raised by the unions at a pre-Budget consultations in the North Block, even as the government is struggling hard to rein in its fiscal deficit.

   After the meeting, Harbhajan Singh Siddhu of Hind Mazdoor Sabha said already seven years of the sixth pay commission have passed and any new commission will take two-three years to study. "The revision of wages and various service conditions of the government employees is already due. Constitution of the seventh Pay Commission be announced in the Budget," joint recommendations of trade unions, including CPI (M)-affiliated CITU, CPI-linked AITUC, INTUC of the Congress and Bharatiya Mazdoor Sangh to the Finance Minister said.

   Also, the unions have demanded the income tax exemption ceiling for the salaried persons should be raised to Rs 5 lakh per annum and fringe benefits like housing, medical and educational facilities should be exempted from the income tax net in totality.

7th Pay Commission – AIRF demads Pay Commission with 50% Pay hike.

   The central government should set up the seventh pay commission and pump in Rs 50,000 crore over the next five years to revive the ailing railways. This was among the 38 demands put forth by the All India Railwaymen's Federation (AIRF). AIRF also demanded that over 2.5 lakh posts under various categories in Indian Railways be filled up.

   Addressing a conference here on Tuesday, ahead of the 88th annual general conference of AIRF, general secretary Shiva Gopal Mishra said the basic pay should be increased by at least 50% in the next pay commission. He slammed the Union finance ministry for delaying the funds being granted to the railways and said several demands were accepted by the railway board, but have been kept pending by the finance ministry. Mishra warned that if the government fails to adhere to the demands of the railway men, then they would resort to a strike.

Seventh Pay Commission to be constituted immediately – National Mazdoor Conference.

National Mazdoor Conference for Seventh Pay Commission

   Jammu, November 17 (Scoop News) –National Mazdoor Conference (NMC) President, Subash Shastri has appealed to the Prime Minister to immediately constitute Seventh Pay Commission headed by C. Rangarajan, former Governor of RBl along with five others noted economists of the country as its members and the announcement to this regard be made in the ensuing winter session of parliament beginning from Nov 22.

   Emphasizing on formulation of a National Pay Policy throughout the country, Shastri demanded setting up of a new Pay Commission which would cover both Central and State government employees be declaring it as National Pay Panel.

   Addressing a largely attended NMC workers rally at Vijaypur today, Shastri further pleaded that till new Pay Commission is constituted and its recommendations implemented, 50% DA be merged with the basic pay/ pension and interim relief of 20% of the basic pay/pension be provided to the Central and State Government employees and pensioners in view of increasing burden due to massive inflation in the country.

Central employees demand seventh pay commission, march to parliament on 26th July.

   The Confederation of Central Government Employees will take out a march to Parliament on July 26, demanding constitution of the Seventh Pay Commission and dismantling of the new pension scheme.

   Talking to reporters in Chennai, general secretary of the Confederation M. Duraipandian said though the Centre had trumpeted that the Sixth Pay Commission had increased the salary of the employees by 28 to 40 per cent, increase in petrol prices and hike in the price of essential commodities had proved that salary hike was not adequate.