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Tuesday, 16 May 2017

7th Pay Commission: Updates on revised allowances today

7th Pay Commission: Updates on revised allowances today after employee leaders-Finance Ministry meet

The commission was constituted in February 2014 to review the principles and structure of emoluments of all central government civilian employees.

A crucial meeting regarding the updates on allowances of the 7th Pay Commission on allowances will take place today. Union leaders and top government officials will be meeting to discuss the issue. At the meet today between the Finance Ministry and the employees' representatives revised allowances, House Rent Allowance, arrears on allowances and a hike in basic pay are likely to be discussed. An update on the revised allowances under the 7th Pay Commission will be shared by the government after the meeting.

The commission was constituted in February 2014 to review the principles and structure of emoluments of all central government civilian employees including defence forces and submitted its report on 19 November 2015. The central government employees had fixed May 23 as the date to protest and had even called for a strike. However the government had assured that their demands on allowances as per the pay panel would be fulfilled. The employees had said that they would go on strike seeking fulfilling of their demands including a hike in allowances as per the pay panel.

The central government employees would now seek an update from the government officials on the assurances that were made to them. Sources said that the meeting will take place today. if they do not find the answers suitable and in case there is an indication of a delay they would be forced to protest, the source also added.  The employees had protested against the recommendations of the pay panel following which the Narendra Modi government had formed a committee under Finance Secretary Ashok Lavasa.

The committee was put in charge of reviewing the suggestions. The central government employees had expressed regret that the government was delaying the hike in allowances. After the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances, the Committee on Allowances, headed by Finance Secretary Ashok Lavasa was constituted in June last year.

7th Pay Commission: Update On Allowances Likely Tomorrow

The committee which examined the 7th pay commission's recommendations on allowances submitted its report to the finance minister on April 27. Edited by Surajit Dasgupta STORY HIGHLIGHTS Lavasa committee had submitted its report on allowances on April 27 Out of 196 allowances, the commission recommended that 52 be abolished Cabinet had earlier approved in recommendations in change of pensions

The committee examining 7th pay commission's recommendations on allowances has submitted its report. Union leaders of central government officials are likely to meet government officials on Tuesday and will seek an update on 7th pay commission allowances, said a union leader who would be part of the delegation. The committee, which examined the 7th pay commission's recommendations on allowances, submitted its report to the finance minister on April 27.

The committee was headed by Finance Secretary Ashok Lavasa and had Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel & Training, and Post, and Chairman, Railway Board, as Members, and Joint Secretary (Implementation Cell) as Member Secretary. by Taboola Sponsored Content 2017 - The new Siemens hearing aids, small and powerful hear.com The Lavasa committee has suggested some modifications in some allowances that are applicable universally to all employees as well as certain other allowances which apply to specific employee categories, the finance ministry said in a statement.

The finance ministry said that an Empowered Committee of Secretaries (E-CoS) will screen the allowance committee report on 7th pay commission recommendations. The empowered committee will then firm up the proposal for approval of the Cabinet The 7th pay commission had recommended that house rent allowance or HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city.
The 7th pay commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent. With regard to allowances, employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent.

The 7th pay commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance.
The Cabinet had earlier approved modification in recommendations of the 7th pay commission relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on recommendations of a high-level panel.
The decision will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.

Notional Pay Calculation from 4th CPC to Find 7th CPC Basic Pension

Notional Pay Calculation from 4th CPC to Find 7th CPC Basic Pension
OM No.38/37/2016-P&PW(A) dated 12.5.2017 :
Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission – Revision of pension of pre-2016 pensioners/family pensioners, etc :

(i)REVISED PENSION OF PENSIONERS WHO RETIRED BETWEEN 1-1-1986 & 31-12-1995 (4TH CPC SCALES)

Step 1:
work out Notional pay as on 1.1.1996 = LPD at the time of retirement + DA as on 1-1- 1996 was 148 % up to Rs.3500 BP and 111% for BP Rs.3501 to 6000 with minimum of Rs.5180 + IR 1 Rs 100/- + IR II =10% of BP (min Rs100) + 40% fitment benefit sum total be placed in appropriate stage in the 5th CPC scale corresponding to the scale from which retired e.g 4th CPC scale =2000-60-2300-75-3200 LPD 2300 Notional pay = 2300 +3404 +100 +230 + 920 =6954 placing it at appropriate level of Corresponding 5th CPC scale = 6500-200-10500 Notional pay as on 1.1.96 comes to Rs 7100/

Step 2:
Work out Notional pay in 6th CPC PB 2 Rs 9300-34800 GP 4200 =7100 X1.86 +4200 = 17406

Step 3:
work out Notational pay 7th CPC = 17406 x 2.57 = 44735plce it in pay matrix level 6 = 44900

Step 4:
7th CPC pension = Rs 22450 family pension

(ii) REVISED PENSION OF PENSIONERS WHO RETIRED BETWEEN 1-1-1996 & 31-12-20055 (4TH CPC SCALES) e.g
5th CPC scale S 19 10000- 15200 LPD Rs 11300
Step 1:
work out notional pay 6th CPC PB 3 GP 6600 =11300×1.86 +6600 = 27620
Step2:
Work out Notional Pay 7th CPC in accordance with OM No.38/37/2016-P&PW(A) dated 12.5.2017 = 27620 x 2.57 = 70 984 place it at appropriate stage in Pay Matrix Level 11 = 71800/

Step 3 :
Pension = 35900/ family Pension = Rs 21540/ Example: In case of a pensioner retired at last pay drawn of Rs.4000 on 31st January, 1989 under IV CPC regime, having drawn 9 increments in the pay scale of Rs.3000-100-3500-125-4500… Find the corresponding 6th CPC Grade Pay Rs.6600 and enter 9 earned increments in the calculator.

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