Pay Commission publishes News Paper Advertisement

7th Pay Commission today (4th May 2014) publishes advertisement in all leading news papers of India.

Please click on the image below to see/ download the advertisement :

Can govt salaries attract good talent, 7th pay panel asks

Amid a widening gap between the salaries offered by private sector companies and the government pay-scales, the Seventh Pay Commission has set the ball rolling on the process of implementing a new pay package for over 50 lakh central government employees by sending a missive to all central ministries eliciting views on whether the current remuneration packages are sufficient to attract talent to the prestigious civil services.

In a four page questionnaire, the pay panel wants to know how attractive is the annual increment, ways to reward good performance and the changes introduced by the Sixth Pay Commission such as pay bands and pay grades.

“A questionnaire seeking the considered views of stakeholders is enclosed… so as to enable the Commission to take them into account as part of its examination of the issues that it is mandated to address,” said the missive by the pay panel, requesting all replies by May 10.

The panel has also sought comments on determining the basis for pay fixation at the highest and lowest levels, variable pay, the effectiveness of the annual increment on July 1, retirement benefits under the New Pension Scheme as well as experiences of government departments with outsourcing of jobs.

Significantly, the pay panel has a dedicated section on issues relating to the defence services seeking views on how to evolve parity between salaries of civil and defence personnel. It is also expected to review benefits to war widows and disabled soldiers.

The pay panel that was, one of the last pre-poll bonanzas announced by the UPA was approved by the Cabinet on February 28 and is expected to submit its recommendations within 18 months.
Headed by former Supreme Court judge Ashok Kumar Mathur, it was asked to finalise its recommendations while “keeping in view the economic conditions in the country” and fiscal prudence.

The Sixth Pay Commission was set up in 2006,and gave its report after 18 months in March 2008, costing the Exchequer an additional Rs 26,035 crore in the first year and is considered one of the main reasons why the government missed its fiscal deficit target.

Accordingly, the Seventh Pay Commission that is looking into revising salaries of over 50 lakh central government employees and remuneration of 30 lakh pensioners has asked for ideas on how to address the rising expenditure on defence pensions.

It has also sought views on how to limit the impact of its report on state governments. “The recommendations of the Pay Commission are likely to lead to similar demands from employees of state governments…to what extent should their paying capacity in devising a reasonable remunerative package for Central Government employees,” said the questionnaire.

The panel has also sought views on the payment of bonus, which is one of its terms of reference. Additionally, it has asked for comments on the pay structure .




 (Indian Express Delhi Edition 01/05/2014)

IAS officers drafting wish list for pay panel

When the country is in the midst of electing a new government, the executive is busy drafting its wish list for the Seventh Pay Commission.

As per a recent resolution, the Central Indian Administrative Service Officers’ Association has decided to present a comprehensive and united representation of its demands before the Seventh Pay Commission, the setting up of which was announced by the government last month.

The association has asked the Andhra Pradesh, Punjab and Uttar Pradesh IAS officers’ units to work on proposals for pay revision. Andhra Pradesh, Jammu and Kashmir and Rajasthan Associations have been allocated the job of drafting various aspects of essentials for IAS officers including security, transportation or car facility or allowance, camp office and attendant allowances.

Dearness, travel and other allowances like entertainment and perks will be looked into by the Himachal Pradesh, Maharashtra and Tamil Nadu associations while issues of loans for children’s education, housing, vehicles and gadgets have been entrusted to the Gujarat, Rajasthan and Arunachal Pradesh, Goa, Mizoram and Union Territory (AGMUT) cadre.

Health insurance and risk coverage and health facilities will be dealt with by the IAS officers of Karnataka, Madhya Pradesh, Tamil Nadu, Maharashtra, AGMUT and Haryana.

Government residential quarters and housing schemes for members will be studied and proposals submitted to the commission by officers of the Andhra Pradesh, Kerala and Uttar Pradesh cadre.

(The Hindu, New Delhi Edition 13th April. 2014)

7th Pay Commission Terms of Reference

The Union Cabinet today (28/02/2014) gave its approval to the Terms of Reference of 7th Central Pay Commission (CPC) as follows:-

a)  To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-
Central Government employees-industrial and non-industrial;

1. Personnel belonging to the All India Services;
2. Personnel of the Union Territories;
3. Officers  and   employees   of  the   Indian  Audit  and   Accounts Department;
4. Members of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of Parliament; and
5. Officers and employees of the Supreme Court.

b)      To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the Defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel.

c)      To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d)     To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.

e)      To review the variety of existing    allowances presently available to employees in addition to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure is so designed as to take these into account.

f)       To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g)      To make recommendations on the above, keeping in view: 

1. the economic conditions in the country  and need for fiscal prudence;
2. the need to ensure that adequate resources are available for developmental expenditures and welfare measures;
3. the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications;
4. the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and
5. the best global practices and their adaptability and relevance in Indian conditions.

h)      To recommend the date of effect of its recommendations on all the above.

The Commission will make its recommendations within 18 months of the date of its constitution.  It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the 7th Central Pay Commission.

Background

            Central Pay Commissions are periodically constituted to go into various issues of emoluments’ structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required.

Defence forces to get special hearing from 7th pay panel

The armed forces are finally in for a special hearing, with the Centre likely to separately deal with issues pertaining to their service conditions and payment structures in the 7th Central Pay Commission. The Union government, however, has not accepted the demand for military representation on the pay panel.

The terms of reference for the 7th CPC, to be cleared by the Cabinet, will for the first time include a paragraph on the defence forces. It has come in response to intense lobbying by the defence ministry and the armed forces, with the latter for long complaining of a “raw deal” compared to their civilian counterparts in the fixation of salaries by the central panel.

According to the terms of reference, the pay panel will examine the salary structure and benefits, including retirement benefits, with “due emphasis on the aspects unique to these (military) personnel”. The allowances could be reviewed in view of the hardships, both in terms of operations and frequent transfers, associated with military service.

There is another plus for the defence forces, with Justice Ashok Kumar Mathur to chair the pay commission. He has been the chairman of the Armed Forces Tribunal and the government says he is conversant with the issues related to defence forces.

(Time of India - Delhi edition 13/02/2014)

Prime Minister Approves Composition of 7th Central Pay Commission

Prime Minister today (04/02/2014) Approves Composition of 7th Central Pay Commission Under the Chairmanship of Justice Ashok Kumar Mathur, Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal.

The Prime Minister has approved the composition of the 7th Central Pay Commission as follows:

1. Shri Justice Ashok Kumar Mathur -  Chairman  (Retired Judge of the Supreme Court and Retired  Chairman, Armed Forces Tribunal)
2. Shri Vivek Rae  -  Member (Full Time), (Secretary, Petroleum & Natural Gas)
3. Dr. Rathin Roy  -  Member (Part Time) (Director, NIPFP) 
4. Smt. Meena Agarwal  -    Secretary,(OSD, Department of Expenditure, Ministry of Finance)

It is not clear whether Pay commission for Armed Forces will be setup separately or pay structure of the armed forces will continue to be decided by current pay commission.