7th CPC Report : Key Recommendations

7th CPC Report : Key Recommendations
Image representative of the cover
page of the report as available
in the 7CPC website

 The system of Pay Bands and Grade Pay has been dispensed with and new functional levels arrived by merging the erstwhile grade pay with the pay in the pay band has been proposed. All of the existing levels have been subsumed in the new structure; no new level has been introduced nor has any existing level been dispensed with… reads the 880 page report submitted by the commission.

The recommendations will translate into 23.55% increase in salary, allowances and pension along with a virtual one-rank-one-pension for civilians. Some 48 Lakh serving and about 52 lakh pensioner will be benefitted from the pay revision effective from 1st Jan, 2016.

 Here is the first impression of the recommendations for a civilian employees . . 
-        Bands and Grade Pay replaced with new functional levels/pay matrix.
-        Minimum @ Rs 18000 & Max @ 2.5 Lakh per month wef 01/01/2016.
-        Existing Pay Bands (4) and Grade Pay replaced by levels (18).
-        Annual Increment retained at @ 3% as it is.
-        Fitment in the new pay matrix done by multiplying basic pay on the date of implementation by a factor of 2.57 rounded to the nearest rupee.
Fitment scheme :
For PB-1 : (Band Pay + Grade Pay) X 2.57
For PB-2 : (Band Pay + Grade Pay) X 2.62
For PB-3 : (Band Pay + Grade Pay) X 2.67
For PB-4 : (Band Pay + Grade Pay) X 2.57 or 2.67 or 2.72
-        MACP to continue as it is except that benchmark has been raised from “Good” to “Very Good” MACP in next hierarchy.
-        Withholding of annual increments in case of employees who does not meet the benchmark for MACP/regular promotion within the first 20 years of service.
-        Cash Handling Allowance : Abolished.
-        Children Education Assistance : Retained procedure simplified.
-        Dearness Allowance (DA) : Retained
-        Deputation Duty Allowance : Retained ceiling enhanced to 50%
-        Family Planning Allowance : Abolished.
-        Hard Area Allowance : Retained
-        House Rent Allowance (HRA) : Retained but reduced
@ 8 % (against existing 10%)
@ 16% (against existing 20%)
@24 % (against existing 30%)
When DA crosses 50 % HRA to increase to 9%, 18% or 27%
When DA crosses 100% HRA to increase to 10%, 20% or 30%
-        Island Special Duty Allowance (ISDA) : Reduced to 10%, 16% and 20%
-        Over Time Allowance (OTA) abolished except for operational and industrial employees.
-        Special Compensatory (Remote Locality) Allowance : replaced by Tough Location Allowance (I, II or III). R3H1 applicable for ANI.
-        Transport Allowance : Retained as it is, Marginally increased.
-        Assisting Cashier Allowance, Cash Handling Allowance, and Treasury Allowance : Abolished
-        Leave Travel Concession (LTC) : Retained, Extension to Foreign countries : Not in the ambit of commission.
-        Earned Leave : Retained as it is except that HPL for Vacation staff replaced by 10 days EL.
-        Child Care Leave (CCL) to remain except :
@100% of pay for the first 365 days
@ 80% of pay for the next 365 days
Extended to Single Male parent also
Single Female parent can now avail CCL in 6 spells in a year.
-        CL/Gazetted/Restricted Holidays/Maternity/Paternity Leave : No change
-        Health Insurance Scheme recommended.
-        All non-interest bearing advances abolished.
-        Limit for interest-bearing advances for buying home increased from Rs 7.5 lakh to Rs 25 lakh.
-        National Pension Scheme (NPS) to continue except that the demand for enhancement of contribution made by Govt (presently 10 %) is to be reviewed by an expert committee.
NPS withdrawal to be exempted from tax
Service Tax levied during annuity purchase exempted.
-        Specific to A&N Islands
Grade Pay of Seacunny under DSS increased from 1800 to 2000.
Grade Pay of Bus Conductor under DoT increased from 1800 to 1900.
Grade Pay of Sanitary Inspectors under RD increased from 2400 to 2800.
All other demands put forth by various departments including that by the AC Cadre has not been considered by the commission.

Read the full report at the commission website here.

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