Report of the Seventh Central Pay Commission
Executive
Summary
Chapter
17
17.1 Minimum Pay: After considering all relevant factors and based on the Aykroyd formula the minimum pay in government is recommended to be
set at Rs.18000 per month. (chapter 4.2)
17.2 New Pay Structure: The present system of pay
bands and grade pay has been dispensed with and a new pay matrix has
been designed.
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. All existing levels have been subsumed in the new structure; no
new levels have been
introduced nor has any level been dispensed with. (paras 5.1.13 to 5.1.17)
17.3 In the “horizontal range”of the pay matrix level corresponds to a ‘functional role in the hierarchy’
and as the employee’s level rises he or she moves from level to level. The “vertical range” for each level denotes ‘pay progression’
within that level and an employee would move vertically within each
level as per the annual financial progression of three percent. The
starting point of the matrix is the minimum pay which has been
arrived based on 15th ILC norms or the Aykroyd formula. (para 5.1.21)
17.4 Fitment: The starting point for the first level of the
matrix has been set at Rs.18,000. This corresponds to the present
starting pay of Rs.7,000,
which is the beginning of PB-1 viz., Rs.5200 + GP 1800, on the date
of implementation of the VI CPC recommendations. Hence the starting
point now proposed is
2.57 times of what was prevailing on 01.01.2006. This fitment factor of
2.57 is being proposed to be applied uniformly for all employees. (para 5.1.27)
17.5 Annual Increment: The rate of annual increment is being retained at 3 percent. (para 5.1.38)
17.6 Entry Pay:Thedifferential of entrypaybetween new recruits and promoted employees at various levels has been done away with. (para 5.1.32 and para 5.1.33)
17.7 Modified Assured Career Progression (MACP):
i. This will continue to be administered at 10, 20 and 30 years as before.
ii. In the new Pay matrix, the employees will move to the immediate next level in the hierarchy.
iii. In the interest of improving performance level, the benchmark for
MACP has been recommended to be enhanced from ‘Good’ to ‘Very Good.’
iv.
The Commission has proposed withholding of annual increments in the
case of those employees who are not able to meet the benchmark either
for MACP or a
regular promotion within the first 20 years of their service. (paras 5.1.44-5.1.46)
17.8 Defence pay matrix: A pay matrix similar to
that for civilian employees has been drawn up for defencepersonnel.
Thecommencement
of the DefencePayMatrixforcombatants corresponds to the existing GP
2000, which is the induction level for Sepoys and equivalent. The Pay
Matrix designed
for the defence forces personnel is more compact than the civil pay
matrix keeping in view the number of levels, age and retirement profile
of the service
personnel. (para 5.2.13 and para 5.2.14)
17.9 Military Nursing Officers (MNS): Similarly, in the case of the pay matrix for (MNS), the existing uniqueness in the pay structure
of MNS officers has been captured in the pay matrix designed for the MNS. (para 5.2.12)
17.10 Military ServicePay(MSP): TheDefenceforces personnel will continueto beentitled to payment of Military Service Pay for all ranks up to
and inclusive of Brigadiers and their equivalents. The MSP per month recommended is as follows:
| i. | Service Officers | Rs.15,500 |
| ii. | Nursing Officers | Rs.10,800 |
| iii. | JCO/ORs | Rs. 5,200 |
| iv. | Non Combatants (Enrolled) in the Air Force | Rs. 3,600 |
17.11 MSP will continue to be reckoned as Basic Pay for purposes of
Dearness Allowance, as also in the computation of pension. Military
Service Pay will
however not be counted for purposes of House Rent Allowance,
Composite Transfer Grant and Annual Increment.
(
para
5.2.22)
17.12 The Military Service Pay, which is a compensation for the various
aspects e.g., intangibles linked to special conditions of service,
conducting full
spectrum operation including force projection outside India’s
boundaries, superannuation at a younger age and for the edge
historically enjoyed bythe
Defence Forces over the civilian scales, will be admissible to the Defence forces personnel only. (para 6.1.31)
17.13. MACP: MACP for defence forces personnel will continue to be administered at 8,16 and 24 years of service. (para 6.2.85)
17.14 Rationalisation of Trades: All X trades should mandatorily obtain a qualification which is equivalent of a diploma in
engineering (recognised by AICTE). The incentive structure will henceforth be linked with the qualifications as follows:
i. X pay for JCOs/ORs in Group X at Rs.3,600 per month for those
currently in X pay, but not having a technical qualification recognised
by AICTE).
ii. X pay for JCOs/ORs in Group X at Rs.6,200 per month for all X trades
which involve obtaining a qualification which is equivalent of a
diploma recognised
by AICTE.
(
para
6.2.79
and
para
6.2.88)
17.15 Defence Security Corps (DSC): The benefit of
MACP be permitted to DSC personnel also. However this benefit should be
limited to
a total of three upgrades in the entire service career, taking the
combined length of the regular employment and the course of reemployment
as defence
service corps personnel. The first benefit of MACP may be extended
to them after a period of eight years from their date of re-employment,
in case they do
not get a promotion during this period. (para 6.2.98)
17.16 Grant ofAnnual Increment to Recruits: Thebenefit of grant of first annual increment to recruits will be reckoned
from date of enrolment. (para 6.2.94)
17.17 Short Service Commissioned Officers:
Short Service Commissioned Officers will be allowed to exit Armed Forces
any 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. (para 6.2.63)
17.18 Headquarters Staff: Parity in pay, up to the
rank of Assistants, between the field staff and headquarter staff is
recommended.
It is recommended that the level of Assistants of CSS be brought at
par with Assistants in the field offices who are presently drawing GP
4200.
Accordingly, in the new pay matrix the Assistants of both
Headquarters as well as field units will come to lie in Level 6 in the
pay matrixand pay fixed
accordingly. This level corresponds to pre-revised GP 4200. The
corresponding posts in the Stenographers cadre will also follow similar
pay parity between
field and headquarter staff. The pay of those Assistants/ Stenographers
who have, in the past, been given higher Grade pay would be protected.
(chapter 7.1)
17.19 Recently, through a government order ‘edge in pay’ has been
extended to the Upper Division Clerks belonging to CSS in the
Secretariat bywayof grant
of non-functional selection grade to GP 4200.This is available to 30
percent of UDCs. Since the Commission is recommending placement of all
Assistants,
field and Headquarters, in Level 6 of the pay matrix, which
corresponds to pre-revised GP 4200, this non-functional selection grade
to GP 4200 for Upper
Division Clerks belonging to CSS is recommended to be withdrawn. (para 7.1.4 (j))
17.20 Two Additional Increments in CSS/CSSS are
granted at the time of their promotion from the grade of Under
Secretary/PPS to the
grade of Deputy Secretary/Senior PPS. The Commission finds no merit
in continuation of two increments for CSS/CSSS as no such dispensation
exists in any
other service except the IAS and hence recommends abolition of the
same. (para 7.1.6 (d))
17.21 Cadre Review: To hasten the process of cadre reviews
and reduce the time taken in inter-ministerial consultations, it
isrecommended
that the examination of the cadre restructuring proposal should be
undertaken at the department level itself with one member each from DoPT
and Department
of Expenditure attending such meetings chaired by the concerned
Secretary of the cadre seeking the review, in the capacity of the cadre
controlling
officer. The proposal can thereafter be placed before the Cadre
Review Committee chaired by the Cabinet Secretary where the concerned
Secretaries are
represented. (para 7.3.17)
17.22 Common Categories: To streamline the common cadres
residing in different Departments/Ministries/UTs it is recommended that
the
government assign specific ministries to be the nodal ministry for
each such category. These nodal ministries be tasked with drafting model
recruitment
rules laying down the educational qualifications, job
responsibilities and pay structure for all such categories. A few
examples are the Statistical Cadres
and Fire-fighting staff. (para 7.7.75)
17.23 Allowances: The entire structure of allowances have been
examined de novo with the overall aim of transparency, simplification
and
rationalization, keeping amongst other things, the proposed pay
structure in mind. The Commission has recommended abolishing 52
allowances altogether.
Another 36 allowances have been abolished as separate identities,
but subsumed either in an existingallowanceor in newlyproposed
allowances.
Particularemphasis has been placed on simplifying the process of
claiming allowances. Allowances relating to Risk and Hardship will be
governed by the
proposed Risk and Hardship Matrix. (para 8.2.5)
17.24 Most of the allowances that have been retained have been given a
raise that is commensurate with the rise in DA. Allowances that are in
the nature of
a fixed amount but fully indexed to DA have not been given any
raise. Regarding percentage based allowances, since the Basic Pay will
rise as a result of
the recommendations of this Commission, the quantum of percentage
based allowances has been rationalized by a factor of 0.8. (para 8.2.3)
17.25 Risk and 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. This would be the ceiling for
risk/hardship allowances
and there would be no individual RHA with an amount higher than this
allowance. (para 8.10.65 and para 8.10.66)
17.26 House Rent Allowance: In line with our
general policy of rationalizing the percentage based allowances by a
factor of 0.8, the
Commission recommends that HRA should be rationalized to 24 percent,
16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities
respectively.
The Commission also recommends that the rate of HRA will be revised
to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and
further revised
to 30 percent, 20 percent and 10 percent when DA crosses 100
percent. (para 8.7.15)
17.27 Currently, in the case of those drawing either NPA or MSP or both,
the amounts of NPA/MSP are included with the Basic Pay and HRA is being
paid as a
percentage of the total amount. The Commission recommends that HRA
should be calculated as a percentage of Basic Pay only and that add-ons
like NPA, MSP,
etc. should not be included while working out HRA. (para 8.7.16)
17.28 The Commission, in the interactions it has had with the men on the
ground at all field locations it has visited, has seen first-hand that
the lack of
proper housing compensation is a source of discontentment among
these employees. The service rendered by PBORs of uniformed services
needs to be recognized
and Housing provisions of PBORs of Defence, CAPFs and Indian Coast Guard
have been simplified and HRA coverage has been extended to them. (para 8.7.26)
17.29 Uniform related allowances have been amalgamated under a
simplified Dress Allowance payable annually. It is thus recommended that
uniform related
allowances be subsumed in a single Dress Allowance (including shoes). (para 8.16.14)
17.30 Any allowance, not mentioned here (and hence not reported to the
Commission), shall cease to exist immediately. In case there is any
demand or
requirement for continuation of an existing allowance which has not
been deliberated upon or covered in this report, it should be
re-notified by the
ministry concerned after obtaining due approval of Ministry of
Finance and should be put in the public domain. (para 8.2.5)
17.31 Entire CPMA will be payable to the PBORs of Defence Forces. Except
Rum Allowance, other components of CPMA will be payable to PBORs of
CAPFs, Indian
Coast Guard, RPF and Police forces of Union Territories. Rum
Allowance will be granted to PBORs of CAPFs and Indian Coast Guard as
per the existing
guidelines. (para 8.17.25)
17.32 Night Duty Allowance: While the present weightage of 10 minutes
for every hour of duty performed between the hours of 22:00 and 06:00
the present
prescribed hourly rate of NDA equal to (BP+DA)/200 may be continued, the
amount of NDA should be worked out separately for eachemployee and the existing formulation for giving same rate of NDA for all employees with a particular GP should be abolished. (para 8.17.77)
17.33 OTA should be abolished (except for operational staff and
industrial employees who are governed bystatutory provisions). At the
same time it is also
recommended that in case the government decides to continue with OTA
for those categories of staff for which it is not a statutory
requirement, then the
rates of OTA for such staff should be increased by 50 percent from
their current levels. (para 8.17.97)
17.34 All non-interest bearing Advances have been abolished. (para 9.1.4)
17.35 Regarding Motor Car Advance and Motor Cycle/Scooter/Moped Advance,
since quite a few schemes for purchase of vehicles are available in the
market
from time to time. The employees should avail of these schemes and
both these advances should be abolished. (para 9.1.7)
17.36 Regarding other interest-bearingadvances, the followingis recommended: (para 9.1.8)
| (i) | P C Advance | Rs.50,000 or actual price of PC, whichever is lower | May be allowed maximum five times in the entire service. |
| (ii) | HBA | 34 times Basic Pay OR
Rs.25 lakh OR anticipated price of house, whichever is least |
The requirement of minimum 10 years of continuous service to avail of HBA should be reduced to 5 years.
If both spouses are government servants, HBA should be admissible to both separately. Existing employees who have already taken Home Loans from banks and other financial institutions should be allowed to migrate to this scheme. |
17.37 The three different kinds of leave admissible to civilian/defence
employees which are granted for work related illness/injuries–Hospital
Leave,
Special Disability Leave and Sick Leave are being subsumed and
rationalized into a composite new Leave named Work Related Illness and
Injury Leave (WRIIL). (para 9.2.36)
1. Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.
2. Beyond hospitalization, WRIIL will be governed as follows:
a. For Civilian employees, RPF employees and personnel of Police Forces
of Union Territories: Full pay and allowances for the 6 months
immediately
following hospitalization and Half Pay only for 12 months beyond
that. The Half Pay period may be commuted to full pay with corresponding
number of days of
Half Pay Leave debited from the employee’s leave account.
b. For Officers of Defence, CAPFs, Indian Coast Guard: Full pay and
allowances forthe 6 months immediatelyfollowinghospitalization, forthe
next 24 months,
full pay only.
c. For PBORs of Defence, CAPFs, Indian Coast Guard: Full pay and allowances, with no limit regarding period.
17.38 TheRates of contribution as also the insurance coverage under the
Central Government Employees General Insurance Scheme have remained
unchanged for
long. The following rates of CGEGIS are recommended: (para 9.3.6)
| Level of E mployee | Monthly Deduction (Rs.) |
Insurance
Amount
(Rs.)
|
| 10 and above | 5000 | 50,00,000 |
| 6 to 9 | 2500 | 25,00,000 |
| 1 to 5 | 1500 | 15,00,000
|
17.39 A simplified process for Cadre Reviews and revamping of the
screening process under Central Staffing Scheme have been recommended. (para 7.3.41)
17.40 Health Insurance: The Commission strongly recommends
the introduction of health insurance scheme for Central Government
employees and
pensioners. In the interregnum, for the benefit of pensioners
residing outside the CGHS areas, the Commission recommends that 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. This would
involve strengthening of administrative capacity of nearest CGHS
centres. The Commission recommends that the remaining 33 postal
dispensaries should be
merged with CGHS. The Commission further recommends that all postal
pensioners, irrespective of their participation in CGHS while in
service, should be
covered under CGHS after making requisite subscription. The
Commission recommends that possibility of such a combined network of
various medical schemes
should be explored through proper examination. (para 9.5.18)
17.41 Pension: The Commission recommends a revised pension formulation for civil employees including CAPF personnel and Defence personnel,
who have retired before 01.01.2016. This formulation will bring about complete parity of past pensioners with current retirees:
i. All the personnel who retired prior to 01.01.2016 (expected date of
implementation of the Seventh CPC recommendations) shall first be fixed
in the Pay
Matrix being recommended by this Commission, on the basis of the Pay
Band and Grade Pay at which they retired, at the minimum of the
corresponding level in
the matrix. This amount shall be raised, to arrive at the notional
pay of the retiree, by adding the number of increments he/she had earned
in that level
while in service, at the rate of three percent. Fifty percent of the
total amount so arrived at shall be the revised pension. In the case of
the Defence
personnel, total amount so arrived at shall be inclusive of MSP.
ii. The second calculation to be carried out is as follows. The pension,
as had been fixed at the time of implementation of the VI CPC
recommendations,
shall be multiplied by 2.57 to arrive at an alternate value for the
revised pension.
iii. Pensioners maybe given the option of choosingwhichever formulation is beneficial to them.
(
para
10.1.67)
17.42 Since the fixation of pension as per formulation (i) above may
take a little time it is recommended that in the first instance the
revised pension
may be calculated as at (ii) above and the same maybe paid as an
interim measure. In the event calculation as per (i) above yields a
higher amount the
difference may be paid subsequently. (para 10.1.68)
17.43 The Commission recommends enhancement in the ceiling of
gratuityfrom the existing Rs.10 lakh to Rs.20 lakh from 01.01.2016. The
Commission further
recommends, as has been done in the case of allowances that are
partially indexed to Dearness Allowance, the ceiling on gratuity may
increase by 25 percent
whenever DA rises by 50 percent. (para 10.1.37)
17.44 Lump sum Compensation for Invalidation due to Disability:
The Commission recommends an
increase in the existing lump sum compensation of Rs.9 lakh for 100
percent disability to Rs.20 lakh. However it finds no justification to
recommend broad
banding for payment of Ex-gratia award to service personnel boarded
out on account of disability/war injury attributable to or aggravated by
military
service. (para 10.2.65)
17.45 The Commission notes that cadets are not considered on duty during
training and therefore cannot be treated at par with serving defence
forces
personnel. The Commission, however, keeping in view the facts
relating to cadets, recommends an increased ex-gratia disability award
from the existing
Rs.6,300 per month to Rs.16,200 per month for 100 percent
disability. (para 10.2.67)
17.46 Disability Pension: Keeping in view the tenets of
equity, the Commission is recommending reverting to a slab base system
for disability
element, instead of existing percentile based disabilitypension regime.
Distinct rates separatelyforofficers, JCOs and ORs have been prescribed.
(para 10.2.55)
17.47 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 five separate circumstances, to be applied uniformly
for the defence
forces personnel and civilians. (para 10.2.77)
Circumstances |
P r oposed (Rs.) |
| Death occurring due to accidents in course of performance of duties. | 25 lakh |
| Death in the course of performance of duties attribute to acts of violence by terrorists, anti-social elements etc. | 25 lakh |
| Death occurring in border skirmishes and action against militants, terrorists, extremists, sea pirates | 35 lakh |
| Death occurring while on duty in the specified high altitude, inaccessible border posts, on account of natural disasters, extreme weather conditions | 35 lakh |
| Death occurring during enemy action in war or such war like engagements, which are specifically notified by Ministry of Defence# and death occurringduringevacuation of Indian Nationals from awar-torn zone in foreign country | 45 lakh |
17.48 Indian Coast Guard: The Commission is recommending for the Indian Coast Guard: a. Merger of pay group Z into pay group Y. (para 11.12.15)
b. X pay of Rs.6,200 p.m. to all direct entry diploma holders. (para 11.12.18)
c. Sarang Laskars to be upgraded to paylevel 4 in the civilian paymatrix. (para 11.12.21) d. Upgradation of Director General to Apex Level. (para 11.12.27)
Other
highlights
are
as
under:
17.49 The Edge: The edge, presently accorded to the Indian
Administrative Service in the form of two additional increments @ 3
percent over
their basic pay at three promotion stages i.e., promotion to the
Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and
the NFSG to continue
in the proposed pay matrix.
17.50 Having regard to the difficult demands placed on police officers
bytheir jobs including longworkinghours, the risk of personal injuryand
death and
the immensepublicresponsibility they carry, the view of the Chairman
hasrecommended that this financial edge, as given to the IAS, be
extended to the IPS
as also to the third All India Service, the IFoS. (para 7.2.38)
17.51 In so far as the Indian Foreign Service is concerned, the existing dispensation shall continue. (para 7.2.18 and para 7.2.19)
17.52 Shri.Vivek Rae, Member, Seventh CPC is of the view that the
financial edge for IAS and IFS is fully justified but has not agreed
with the view that
it should be extended to the IPS and the IFoS. (para 7.2.20)
17.53 Dr. Rathin Roy, Member, Seventh CPC is of the view that the
financial edge accorded to the IAS and IFS should be removed. IAS
officers have a
multi-dimensional leadership role to play and in specific jobs such as
that of DM/DC, officers occupying such positions must be able to be primus inter pares by administrative affirmation. According to him, if this position is to be reflected through superior financial remuneration,
then their recruitment must be conducted separately. (para 7.2.21)
17.54 Chairman and Dr.Rathin Roy, Member areof the viewthat all AIS and
Central Services Group A officers who have completed 17 years of service
should be
eligible for empanelment under the Central Staffing Scheme and the
“two year edge”, presently enjoyed by the IAS should be withdrawn. Shri
Vivek Rae,
Member, has not agreed with this view and has recommended review of the
Central Staff Scheme guidelines. (para 7.2.23 and para 7.2.24)
17.55 Non Functional Upgradation for Organised Group ‘A’ Services:
The Chairman is of the
considered opinion that since NFU has been in existence for the last
ten years and is being availed by all the organised Group `A’ Services
it should be
allowed to continue. The same will be available not only to all
organised Central Group ‘A’ Services but also members of CAPFs, ICG and
Defence forces. NFU
will henceforth be based on the respective residency periods in the
preceding substantive grade. All the prescribed eligibility criteria and
promotional
norms including ‘benchmark’ for upgradation to a particular level would
have to be met at the time of grant of NFU. (para 6.2.35, para 7.3.21 and para 7.3.22)
17.56 Shri Vivek Rae, Member and Shri Rathin Roy, Member, have favoured abolition of NFU at SAG and HAG level. (para 7.2.24)
17.57 Chairman and Dr. Rathin Roy, Member, hold the view that 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. (para 11.22.33 and para 11.22.34)
