Union Cabinet approves 7th Central Pay Commission recommendations

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20160629_185705New Delhi: The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits.   It will come into effect from 01.01.2016.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5thCPC, 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.

Highlights

  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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.

Rishi Kumar Shukla appointed new DGP of Madhya Pradesh

Newsroom24x7 Staff

Rishi Kumar ShuklaBhopal: Rishi Kumar Shukla, who was till recently Chairman Madhya Pradesh Police Housing Corporation, has been appointed as the new State Director General of Police.

TheMadhya Pradesh Government today issued the orders appointing Mr. Shukla as the new DGP. He takes over from Surendra Sinh, the outgoing DGP.

 

Modi Cabinet approves new Mining Policy

Newsroom24x7 Staff

New Delhi: Prime Minister Narendra Modi led Cabinet today approved the new National Mineral Exploration Policy (NMEP) policy that would allow large-scale mineral exploration by the private sector.

Thus was announced by Union Minister for Finance and Information and Broadcasting Arun Jaitley here tiday.

Under the new National Mineral Exploration Policy, private sector will be allowed to go for detailed mineral exploration. Till now they could  bid for mineral blocks.

Observers have expressed caution vis-a-vis implementation of the new Mineral Exploration Policy. Few experts when contacted agreed on the point that it remains to be seen whether or not the new policy would open the floodgates for mineral exploration in the “no go” and fragile eco-sensitive zones  that are hotspots from the conservation angle.

Monsoon session of Parliament from July 18 to August 12: GST Bill tops Modi Government agenda

Newsroom24x7 Staff

Parliamentarians of  India by Anoop SwaroopNew Delhi: The Cabinet Committee on Parliamentary Affairs today recommended convening of Monsoon session of Parliament this year from 18 July 18 till 12 August 2016 subject to exigencies of government business.

This was announced by Minister of Parliamentary Affairs M. Venakaiah Naidu after the meeting of CCPA, held after the Cabinet meeting today.

Naidu told media persons here that the coming Monsoon session will have a total of 20 sittings spread over 26 days.

Giving details of the meeting he held with about 30 Ministers to discuss legislative agenda for the coming session of Parliament, Naidu said that there are 11 Bills pending in Lok Sabha and 45 Bills pending in Rajya Sabha. He said that the Ministers have been asked to take necessary action in respect of the pending and new Bills to be introduced by the third of next month so as to ensure that about 20 to 25 Bills could be taken up for introduction, consideration and passing.

Talking to media persons, Naidu expressed the hope that the GST Bill would be passed during the Monsson session of Parliament. He said “there is a broad consensus on GST Bill with almost all the State Governments and political parties favouring the Bills. If some parties still have some issues, the Government is keen to discuss the same. Given the importance of the Bill, it would be appropriate if GST Bill could be passed unanimously. As Minister of Parliamentary Affairs, I prefer consensus on such important Bill before exploring other options. Introduction of GST is in the larger national interest and I appeal to all parties to support it”.

Three Bills are to be taken up in the coming Monsoon session to replace three Ordinances. These three Ordinances are:

1.The Indian Medical Council (Amendment) Ordinance, 2016;
2. The Dentists (Amendment) Ordinance, 2016 (Both relate to exemption this year from National Eligibility cum Entrance Test); and
3. The Enemy Properties (Amendment and Validation) Third Ordinance,2016.

The 11 Bills pending in Lok Sabha are:

1.The Factories (Amendment) Bill,2014;
2.The Electricity (Amendment) Bill,2014;
3.The Lok Pal and Lokayuktas and Other Related Laws (Amendment) Bill,2014;
4.The Merchant Shipping (Amendment) Bill,2015;
5.The Micro, Small and Medium Enterprises Development (Amendment) Bill,2015;
6.The Consumer Protection Bill,2015;
7.The Benami Transactions (Prohibition) Amendment Bill,2015.

In respect of these 7 Bills, the Department Related Standing Committees have presented their reports.

8. The Indian Trust (Amendment) Bill,2015 (agreeing to of amendments made by Rajya Sabha)
9.The Companies (Amendment) Bill, 2016 (referred to Standing Committee)
10.The Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill,2016 (referred to Joint Committee); and
11.The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Bill,2015.

Some of the 45 Bills pending in Rajya Sabha are:

1.The Indian Medical Council (Amendment) Bill, 1987 (as reported by Joint Committee);

(Bills passed by Lok Sabha)

2.The Whistle Blowers Protection (Amendment) Bill,2015;
3.The Compensatory Afforestation Fund Bill,2016
4.The Regional Centre for Biotechnology Bill,2016;

(Bills as passed by Lok Sabha and reports presented by Select Committee of Rajya Sabha)

5. The Constitution (One Hundred and Twenty Second Amendment) Bill,2014 –GST Bill;
6. The Enemy Property (Amendment and Validation) Bill,2016;

(Bill referred to Select Committee)

7.The Prevention of Corruption (Amendment) Bill,2013;

(Bills on which reports were presented by Standing Committees -34 Bills)

8.The Child Labour (Prohibition and Regulation) Amendment Bill,2012;
9.The Right of Persons with Disabilities Bill,2014; and
10. The Pesticides Management Bill, 2008.