PM should appoint 7th Pay Commission: NMC

   National Mazdoor Conference today urged Prime Minister to appoint the 7th pay commission at the next cabinet meeting as employees and pensioners will be entitled for pay commission with effect from January 1, 2016.

   "We urge the Prime Minister to appoint Chairman and other members of the 7th pay commission and take decision in this regard at the next cabinet meeting and start discussion with representatives of both Central and State governments employees as Central and State governments employees and pensioners will be entitled for pay commission with effect from 1-1-2016", President of the National Mazdoor Conference (NMC) Subash Shastri said today.

   He said that the appoint of 7th Pay Commission will end confusion and uncertainty among the employees and pensioners on this issue once for all.

   Addressing a one day workers convention at Brahamin Sabha here, Shastri pointed out that except sixth pay commission all earlier pay commissions were constituted in the 3rd year of every decade.

    In other words earlier pay commissions except 6th pay commission were formed well before its implementation become due.

   "A notification for constitution of the 7th pay commission is the need of the hour, which is bound to have bearing on about one core employees and pensioners, both in Central as well as State governments," NMC Chief added.

   Recalling that it was under Prime Minister Manmohan Singh that last pay panel was set up in 2005, after previous government failed to do so in 2003, Shastri requested that decision be "taken on priority for constitution of the pay commission."

   "50 per cent of DA should be forthwith merged into basic pay and pension," he said, adding, 20 per cent Interim relief should be sanctioned as early as possible in favour of the employees and pensioners.

   Shastri also insisted on the regularisation of daily wagers who have completed seven years of service in Mach 2012, adding their monthly emoluments should be raised to Rs 10,000 per month.

Source: www.business-standard.com

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

7th Pay Commission Projected Pay Scale.

   People may think that the babus again started to make voice over pay revision and next pay commission or 7th Pay commission. There is a saying that “The crying baby gets the milk”. The need makes the man to act.

   One should try to understand the fact that being a government servant one can witness a considerable pay hike at least twice or thrice of his/her entire service period. Because, other than promotion, only the pay commission recommendation will give them considerable pay hike. But it takes place once in ten years. Now a days a government employee can render service 20 or 30 years only due to non availability of employment opportunity in government service below the age of 25. So there is no need to be get annoyed by hearing the voice for seventh pay commission from central government employees. Because constituting next pay commission is for nothing but to review the salary of the govt. servants with the current economical condition of the country.

   How the pay of a govt. employee had been fixed at the beginning of the Independence India.

   Till now there are six pay commission had been constituted to review and recommend pay structure of central government employees.

   All the six pay commissions have taken many aspects into consideration to prescribe the pay structure for government servants.

   In the first pay commission the concept of ‘living wage’ was adopted.

   In second pay commission it had been reiterated that the pay structure and working condition to be crafted in a way so as to ensure the effective functioning of government mechanism.

   The third pay commission adopted the concept of ‘need based wage’

   The Fourth CPC had recommended the government to constitute permanent machinery to undertake periodical review of pay and allowances of Central Government employees, but which got never implemented.

   In Fifth pay commission all federations demanded that the pay scale should be at par with the public sector. But the pay commission didn’t accept this and told that the demand for parity with the Public Sector was however difficult to concede as it felt that the Job content and condition of service in the government and pulic sector not necessarily the same. There were essential differences between the two sectors.

   The Sixth Central Pay Commission, claimed that it had not only tried to evolve a proper pay package for the Government employees but also to make recommendations rationalizing the governmental structure with a view to improve the delivery mechanisms for providing better services to the common man

  What about seventh pay commission?

   Generally every pay commission, before recommending a pay structure, it used to analyze all the aspects including the economic situation of the country, financial resources of the government, comparison with the public sector, private sector and state government pay structure etc. So it is very much clear that Pay Determination is very complicated and sensitive task. Without any doubt every one accepts that this is very challenging task too. In order to determine the new pay structure the pay commission has to go through voluminous data consisting current economic condition, strength of the work force and working condition etc. In the meantime, if one tries to suggest or comment about 7thy pay commission pay scale or about what the seventh pay commission pay scale would be, it will not get much importance.

   But when we come across all the recommendations of six pay commissions, we observed an interesting factor which is common to all the pay commission recommendations, particularly in the matter of percentage of increase in the pay. Average 3 times increase in the pay was recommended by each pay commission and it was accepted by government and implemented. We have posted three articles about six pay commissions before this post.

Click the link given below to see those articles and average increase was worked out in the table.

First CPC to Third CPC Pay Scales

Fourth CPC pay scale and Fifth Pay commission

Short Description about Sixth Pay Commission

   Obviously it is simple thing, we can say it a mathematical coincidence that we have in common in all previous pay commission, but we cannot neglect this. Because it was there, every time it is noticed that the revised pay was approximately three times higher than its pre revised pay. Apart from all the factors which has been used to determine the pay revision, we can use this simple formula ‘common multiplying factor’ to know the 7th pay commission pay scale . If next pay commission prefer to continue the same running pay band and grade pay system for seventh pay commission also, the pay structure may be like the following projected figures given below, using common multiplying factor ‘3’. The Following is only the projected figure using common multiplying factor ‘3

SIXTH CPC PAY STRUCTURE				PROJECTED  PAY STRUCTURE  FOR NEXT  (VII)  PAY COMMISSION
Name of Pay Band/ Scale	Corresponding Pay Bands	Corresponding Grade Pay	Entry Grade +band pay	Projected entry level pay using uniform multiplying factor` 3’
				Band Pay	Grade Pay	Entry Pay
PB-1	5200-20200	1800	7000	15600-60600	5400	21000
PB-1	5200-20200	1900	7730	15600-60600	5700	23190
PB-1	5200-20200	2000	8460	15600-60600	6000	25380
PB-1	5200-20200	2400	9910	15600-60600	7200	29730
PB-1	5200-20200	2800	11360	15600-60600	8400	34080
PB-2	9300-34800	4200	13500	29900-104400	12600	40500
PB-2	9300-34800	4600	17140	29900-104400	13800	51420
PB-2	9300-34800	4800	18150	29900-104400	14400	54450
PB-3	15600-39100	5400	21000	29900-104400	16200	63000
PB-3	15600-39100	6600	25530	46800-117300	19800	76590
PB-3	15600-39100	7600	29500	46800-117300	22800	88500
PB-4	37400-67000	8700	46100	112200-20100	26100	138300
PB-4	37400-67000	8900	49100	112200-20100	26700	147300
PB-4	37400-67000	10000	53000	112200-20100	30000	159000
HAG	67000- (ann increment @ 3%) -79000	Nil				201000
HAG+ Scale	75500- (ann increment @ 3%) -80000	Nil				226500
Apex Scale	80000 (Fixed)	Nil				240000
Cab. Sec.	90000 (Fixed)	Nil				270000

Source:http://www.gservants.com/2013/02/11/7th-pay-commission-projected-pay-scale/

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