Recommended Date of implementation: January 1, 2016
Minimum Pay:
Based on the Aykroyd formula, the minimum pay in
government is recommended to be set at ₹ 18,000 per month from Rs. 7,000.
Maximum Pay:
₹ 2,25,000 per month for Apex Scale and ₹ 2,50,000 per month
for Cabinet Secretary and others
presently at the same pay level.
Financial Implications:
The
total financial impact in the FY 2016-17 is likely to be ₹ 1,02,100 crore, over the expenditure as per the
‘Business As Usual’ scenario. Of this, the increase in pay would be ₹ 39,100 crore, increase in allowances would be ₹ 29,300 crore and increase in pension would be ₹ 33,700 crore.
Out of
the total financial impact of ₹ 1,02,100 crore, ₹ 73,650 crore will be borne by the General Budget and ₹ 28,450 crore by the Railway Budget.
In%
terms the overall increase in pay & allowances and pensions over the
‘Business As Usual’ scenario will be 23.55%. Within this, the increase in pay
will be 16%, increase in allowances will be 63%, and increase in pension would
be 24%.
The
total impact of the Commission’s recommendations are expected to entail an
increase of 0.65% age points in the ratio of expenditure on (Pay + Allowances +
Pension) to GDP compared to 0.77% in case of VI CPC.
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 &
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.
Fitment:
A fitment factor of 2.57 is being proposed to be
applied uniformly for all employees.
Annual Increment:
The rate of annual increment is being retained at 3%.
Modified Assured Career Progression (MACP):
Performance
benchmarks for MACP have been made more stringent from “Good” to “Very Good”.
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.
No
other changes in MACP recommended.
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:
Details
|
Now
|
Proposed
|
|
1
|
Service
Officers
|
₹ 6,000
|
₹ 15,500
|
2
|
Nursing
Officers
|
₹ 4,200
|
₹ 10,800
|
3
|
JCO/ORs
|
₹2,000
|
₹ 5,200
|
4
|
Non Combatants (Enrolled) in the Air
Force
|
₹1,000
|
₹ 3,600
|
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.
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.
Headquarters / Field Parity:
Parity between field and headquarters staff
recommended for similar functionaries e.g Assistants and Stenos.
Cadre Review:
Systemic change in the process of Cadre Review for
Group A officers recommended.
Allowances:
The 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.
Risk & 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:
Details
|
Present
|
Proposed
|
|
1
|
Service Officers
|
₹ 21,000
|
₹ 31,500
|
3
|
JCO/ORs
|
₹ 14,000
|
₹ 21,000
|
This
would be the ceiling for risk / hardship allowances and there would be no
individual RHA with an amount higher than this allowance
.
House Rent Allowance (HRA):
Since the Basic Pay has been revised upwards, the
Commission recommends that HRA be paid at the rate of 24%, 16% and 8% 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%, 18% and 9% respectively
when DA crosses 50%, and further revised to 30%, 20% and 10% when DA crosses
100%
.
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.
Any
allowance not mentioned in the report shall cease to exist.
Emphasis
has been placed on simplifying the process of claiming allowances.
Advances:
All
non-interest bearing Advances have been abolished.
Regarding
interest-bearing Advances, only Personal Computer Advance and House Building
Advance (HBA) have been retained. HBA ceiling has been increased to ₹ 25 lakhs from the present ₹ 7.5 lakhs.
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:
Details
|
Now
|
Proposed
|
||
Level of Employee
|
Monthly Deduction
(₹)
|
Insurance Amount
(₹)
|
Monthly Deduction
(₹)
|
Insurance Amount
(₹)
|
10
and above
|
120
|
1,20,000
|
5000
|
50,00,000
|
6
to 9
|
60
|
60,000
|
2500
|
25,00,000
|
1
to 5
|
30
|
30,000
|
1500
|
15,00,000
|
Medical Facilities:
Introduction
of a Health Insurance Scheme for
Central Government employees and pensioners has been recommended.
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.
All postal pensioners should be covered under CGHS. All postal dispensaries
should be merged with CGHS.
Pension:
The Commission recommends a revised pension
formulation for civil employees including CAPF personnel as well as for Defence
personnel, who have retired before January 1, 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%.
In the
case of defence forces personnel this amount will include Military Service Pay
as admissible.
50% 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.
Gratuity:
Enhancement in the ceiling of gratuity from the
existing ₹ 10 lakh to ₹ 20 lakh. The ceiling on gratuity may be raised by 25%
whenever DA rises by 50%.
Disability Pension for Armed Forces:
The Commission is recommending reverting to a slab based
system for disability element, instead of existing % based disability pension
regime.
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.
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.
New Pension System
(NPS):
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.
Regulatory Bodies:
The
Commission has recommended a consolidated pay package of ₹ 4,50,000 and ₹ 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% as
and when Dearness Allowance goes up by 50%. For Members of the remaining
Regulatory bodies normal replacement pay has been recommended.
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.
There
are few recommendations of the Commission where there was no unanimity of view
and these are as follows:
The Edge:
An edge is presently accorded 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).
Mr. 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.
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-Ã -vis the IAS. Mr. Vivek Rae,
Member, has not agreed with this view and has recommended review of the Central
Staffing Scheme guidelines.
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.
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.
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