Friday 4 December 2015

FLAWS IN THE VII CPC RECOMMENDATIONS NEED RECTIFICATION BY GOVERNMENT.

1. Retention of 3% increment on basic pay in case of promotion leads to lower financial benefits than the existing benefits: 
In the matter of increment on promotion, the Chairman and the Members of the VII CPC have erred, since the financial benefit would be much lower than what a government servant would have got under VI CPC recommendation on promotion, because the existing benefit on promotion carry change in grade pay apart from 3% increase in Pay+ Grade Pay. 

The following illustration shall show the huge difference:
Suppose an employee whose Pay is Rs.24210/- and the Grade pay is Rs. 5400 totalling to Rs.29610(in the Pay band of 15600-39100), gets his next promotion to the Grade Pay of Rs.6600/-, he will be entitled to the following hike in total remuneration under the existing VI CPC:
Rs.29610 x 3% increment =Rs.890
Difference in Grade Pay from Rs.5400 to Rs.6600= Rs.1200
D.A. at 125% as on 1/1/2016 on Rs.2090 = Rs.2613
HRA at 30%(assuming X city) on Rs.2090 =Rs.627
Total monetary benefit = Rs.5330/-
Whereas the net monetary benefit under VII CPC recommendation, as a result of promotion in the above case will be much lower than the above illustration as shown under:
Equivalent Basic Pay for Rs.29610 come to Rs77700 as per pay matrix
Rs.77700 x 3% increment =Rs.2331(rounded to 2300)
D.A. at 0% as on 1/1/2016 on Rs.2300 = 0
HRA at 24%(assuming X city) on Rs.2300 =Rs.552
Total monetary benefit = Rs.2852/-only as against the existing Rs.5330/- leading to shortage of Rs. 2478/- This is a big blunder committed by the VII Pay commission.
Therefore the increment on promotion should be atleast 6% to bring the benefit of increment on promotion to the existing level.

2. Non recommendation for merger of 50% of D.A. with basic pay when D.A. crosses 50% is a great disappointment.
The long standing demand of the central government employees for merger of 50% D.A with basic was not implemented by the government on the excuse that the VI CPC had not made such a proposal. The VII CPC is totally silent about this aspect.

3. Likely disparities in pension fixation whereby junior may get more pension than the seniors as a result of recommendation under option 2.

The second option to get the pension fixed as per the number of increments drawn in the particular pay level prior to retirement, may result in great disparities whereby the juniors may get much more than senior pensioners who retired in a higher pay with more basic pension, but with less service in the promoted post which he would have held at the time of retirement. Because for arriving at pension under the 2nd option, only the number of years served by a government servant in the particular level of pay at the time of retirement should be taken into consideration as per VII CPC recommendation for exercising the second option.

Therefore in order to arrive at a correct picture to ensure equal pension for civilians for equal number of years, the number of years of service at various levels should be taken into account in all the levels from the date of joining the government service till retirement.

4. Suggestion of the Chairman, VII CPC to do away with setting up of future central pay commissions is a wrong proposal.
The Pay Commissions are set up by the government, to look into the current salary structure and to recommend the hike needed in the pay and other allowances on the basis of the current economic scenario. The additional financial implication for implementation of the recommendations is only for one year. i.e. 2016-17 which proportionately gets increased every year. Therefore the suggestion of the Chairman to do away with setting up any more pay commissions is a big flaw. 

5. Adequate provision is not made towards house rent and educational aspects.
The House Rent admissible in X Cities at 24% for Rs.18000/- comes to only Rs.4320/- .No family can get a good accommodation for this rate even in Z category cities. There should be a minimum of at least Rs.8000/- as House Rent Allowance in X category cities and a maximum ceiling of Rs.25000/- should be imposed, since persons in higher basic pay stand to get hefty amount as House Rent Allowance which is not advisable.

Granting Children Education Allowance only upto 12th Standard is not correct. Anyone with 12th Std. qualification can at the most go for a helper job or MTS in government offices. Certainly no welfare government will have such a narrow concept of making the wards of government employees limit their education upto 12th Std. with a view of providing them menial jobs. Therefore government should encourage high level education and pay Children Education Allowance upto Post Graduation level.

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