7th CPC Latest News: Cabinet proposal soon to constitute 7th Pay Commission

   The central government is likely to constitute the 7th Pay Commission for revising the salaries of its over 50 lakh employees before the start of process of next general elections due in May, 2014.

   “The Finance Ministry is working out a Cabinet proposal for constitution of the 7th Pay Commission which could be taken up for consideration in the next couple of weeks,” a source said.

   According to information available, the government’s intention to constitute 7th Pay Commission before going for polls is clear as it has made provision of Rs. 3.5 crore in the second supplementary demands for grants in this regard which was approved by Parliament in the just concluded Winter Session.

   Earlier in September this year, Finance Minister P. Chidambaram had announced that Prime Minister Manmohan Singh has approved setting up of the 7th Pay Commission.

TERMS OF REFERENCE OF 7th CPC

INDWF/Circular/010/2013

Date : 09.12.2013

To
Affiliated Unions of INDWF

Sub: Terms of Reference of 7th CPC

Dear Colleagues,
   Hon’ble Union Finance Minister made an announcement on 25th September, 2013 for constituting 7th Central Pay Commission; the Government has invited the leaders of the Federations (JCM National Council) for a meeting on 24.10.2013 to discuss the probable terms of reference of 7th Central Pay Commission.

   In the meeting held on October, 24, 2013 at North Block, Room No.190, Chaired by Secretary, DOP&T the Federation leaders pointed out the following issues needs to be considered and settled.

   Anomalies arisen consequent upon the implementations of VI CPC.

Process to Constitute the 7th Central Pay Commission Along with Finalization of Its Terms of Reference

   Process to Constitute the 7th Central Pay Commission Along with Finalization of Its Terms of Reference, The Composition and Timeframe Initiated

   The Government has initiated the process to constitute the 7th Central Pay Commission along with finalization of its Terms of Reference, the composition and the possible timeframe for submission of its Report. The date of effect thereof will be known once the Report is available.

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/

’

VII CPC : Short Description about Sixth Pay Commission.

Before discuss about the VII pay commission let us see about sixth pay commission…

SIXTH PAY COMMISSION

   Initially the then government refused to set up sixth pay commission to review the pay and allowances of central government employees. The then finance minister told that there was no need to constitute next pay commission since 50 % dearness allowance was already merged with the basic pay. The employees had threatened to go on a nationwide strike if the government failed to set up 6th pay commission. In July 2006, the Cabinet approved setting up of the sixth pay commission. This commission has been set up under the Chairmanship of Justice B.N.Srikrishna with a timeframe of 18 months to submit the report. The cost of hikes in salaries is anticipated to be about Rs. 20,000 crore for a total of 3.5 million government employees. The commission submitted the Report to the Government on March, 24, 2008.

   The Sixth Pay Commission mainly focused on removing ambiguity in respect of various pay scales and mainly focused on reducing number of pay scales .It recommended for removal of Group-D cadre.

   The Fifth CPC had compressed many scales. The number of pay scales was reduced from 51 pay scales as on 31.12.1995 to 34 pay scales by the Fifth CPC. In many cases, this led to the promotion and feeder cadres being placed in an identical pay scale. Although Department of Expenditure issued orders that existence of the feeder and promotion posts in the same pay scale will not constitute an anomaly, however, these orders have consistently been rejected by the various courts of this country. The sixth pay Commission, therefore, decided to evolve a new system of pay scales that would effectively address most of the existing anomalies.

   To remove stagnation, introduction of running pay bands for all posts in the Government presently existing in scales below that of Rs.26,000 (fixed).

   The total number of grades reduced to 20 spread across four distinct running pay bands; one Apex Scale and another grade for the post of Cabinet Secretary/equivalent as against 35 standard pay scales existing earlier.

   Four distinct running pay bands being recommended – one running band each for all categories of employees in groups ‘B ’and ‘C ’with 2 running pay bands for Group A posts.

   Annual increments to be paid in form of three percent of the total of pay in the Pay Band and the corresponding grade pay. The date of annual increments, in all cases, is first of July. Employees completing six months and above in the scale as on July 1 will be eligible.

   The revised pay bands have been implemented retrospectively from 1.1.2006. The Fifth CPC also had recommended implementation of the next Pay Commission’s revised pay scales from 1.1.2006. This was also in consonance with demands of a majority of the Associations of Government employees that had sought implementation of Sixth CPC revised pay scales from 1.1.2006.

   Minimum salary at the entry level of PB-1 pay band is Rs.7000 (Rs.5200 as pay in the pay band plus Rs.1800 as grade pay). Maximum salary at the level of Secretary/equivalent is Rs.80000. The minimum: maximum ratio 1:12. The increase from V CPC to VI CPC in all grades starts from 2.4 times to 3.7 times. The increase ratio between 5th pay commission and 6th pay commission is 1:3

FIFTH PAY COMMISSION PAY SCALE Vs SIXTH PAY COMMISSION PAY STRUCURE
V CPC Pay Scale			Sixth CPC Pay Structure				Increase (X)Times
Sl. No.	Post/ Grade	Scale of Pay	Name of Pay Band/ Scale	Corresponding Pay Bands	Corresponding Grade Pay	Entry Grade +band pay
(1)	(2)	(3)	(4)	(5)	(6)
1	S-1	2550-55-2660-60-3200	-1S	4440-7440	1300
2	S-2	2610-60-3150-65-3540	-1S	4440-7440	1400
3	S-2A	2610-60-2910-65-3300-70-4000	-1S	4440-7440	1600
4	S-3	2650-65-3300-70-4000	-1S	4440-7440	1650
5	S-4	2750-70-3800-75-4400	PB-1	5200-20200	1800	7000	2.54
6	S-5	3050-75-3950-80-4590	PB-1	5200-20200	1900	7730	2.53
7	S-6	3200-85-4900	PB-1	5200-20200	2000	8460	2.64
8	S-7	4000-100-6000	PB-1	5200-20200	2400	9910	2.47
9	S-8	4500-125-7000	PB-1	5200-20200	2800	11360	2.52
10	S-9	5000-150-8000	PB-2	9300-34800	4200	13500	2.7
11	S-10	5500-175-9000	PB-2	9300-34800	4200
12	S-11	6500-200-6900	PB-2	9300-34800	4200
13	S-12	6500-200-10500	PB-2	9300-34800	4600	17140	2.63
14	S-13	7450-225-11500	PB-2	9300-34800	4600
15	S-14	7500-250-12000	PB-2	9300-34800	4800	18150	2.42
16	S-15	8000-275-13500	PB-2	9300-34800	5400	21000	2.62
17	New Scale	8000-275-13500(Group A Entry)	PB-3	15600-39100	5400
18	S-16	9000	PB-3	15600-39100	5400
19	S-17	9000-275-9550	PB-3	15600-39100	5400
20	S-18	10325-325-10975	PB-3	15600-39100	6600	25530	2.47
21	S-19	10000-325-15200	PB-3	15600-39100	6600
22	S-20	10650-325-15850	PB-3	15600-39100	6600
23	S-21	12000-375-16500	PB-3	15600-39100	7600	29500	2.45
24	S-22	12750-375-16500	PB-3	15600-39100	7600
25	S-23	12000-375-18000	PB-3	15600-39100	7600
26	S-24	14300-400-18300	PB-4	37400-67000	8700	46100	3.23
27	S-25	15100-400-18300	PB-4	37400-67000	8700
28	S-26	16400-450-20000	PB-4	37400-67000	8900	49100	2.99
29	S-27	16400-450-20900	PB-4	37400-67000	8900
30	S-28	14300-450-22400	PB-4	37400-67000	10000	53000	3.7
31	S-29	18400-500-22400	PB-4	37400-67000	10000
32	S-30	22400-525-24500	PB-4	37400-67000	12000	59100	2.63
33	S-31	22400-600-26000	HAG+ Scale	75500- (ann increment @ 3%) -80000	Nil		3.13
34	S-32	24050-650-26000	HAG+ Scale	75500- (annual increment @ 3%) -80000	Nil		3.13
35	S-33	26000 (Fixed)	Apex Scale	80000 (Fixed)	Nil		3.07
36	S-34	30000 (Fixed)	Cab. Sec.	90000 (Fixed)	Nil		3

Source:http://www.gservants.com/2013/02/11/vii-cpc-short-description-about-sixth-pay-commission/