Travelling Allowance Rules - Implementation of the Recommendations of the 7th Central Pay Commission - Dated 04.09.2017

7th CPC Travelling Allowance Rules - Clarification: Finance Ministry OM dated 04.09.2017

F. No. 19030/1/2017-E.IV
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, dated the 04th September, 2017

OFFICE MEMORANDUM

Subject : Travelling Allowance Rules - Implementation of the Recommendations of the Seventh Central Pay Commission.

Consequent upon the issuance of this Department's O.M. of even number dated 13.07.2017 regarding implementation of recommendations of 7th CPC on Travelling Allowance (TA), various references are being received in this Department seeking clarifications regarding TA/Daily Allowance (DA) entitlements of Officers in Level 13A. Level 13A (pre-revised Grade Pay of Rs. 8900/-) has been included in the Pay Matrix vide Notification No. GSR 592(E) dated 15.06.2017.

2. The matter has been considered in this Department and with the approval of Competent Authority, it has been decided that TA/DA entitlements of Officers in Pay Level 13A (pre-revised Grade Pay of Rs. 8900/-) shall be equivalent to TA/DA entitlements of Officers in Pay Level 13 (pre-revised Grade Pay of Rs. 8700/-) as mentioned in this Department’s O.M. of even number dated 13.07.2017.

Hindi version is attached.

Sd/-
(Nirmala Dev)
Deputy Secretary to the Government of India

To,
All Ministries and Departments of the Govt. of India etc. as per standard distribution list.
Copy to: C&AG and U.P.S.C., etc. as per standard endorsement list.

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Guidelines to preserve the All India Character of Centrally Sponsored Scheme (CSS)

Guidelines to preserve the All India Character of Centrally Sponsored Scheme (CSS)

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE

D.O. No. 66(1 )/PF.II/2015

31st August, 2017

Dear Secretary,
You are aware that Government of India is implementing Centrally Sponsored Schemes (CSSs) within the framework of National Development Agenda set by Committee of Chief Ministers constituted by NITI Aayog, These schemes cater to pan Indian developmental requirements and are aimed at achieving comparable levels of development and welfare across the States and regions. To this end, it is essential to maintain uniformity in the core features and implementation process of the Schemes, It should be understood that Parliamentary approvals through budget provision and appropriation have been received for implementing the Schemes as per their core features.
2, Accordingly a set of guidelines is enclosed which may be suitably incorporated in the architecture of all the CSSs being implemented by your Ministry/Department to ensure proper adherence to the core features reflecting the all India character.
3, Action taken in this regard may be kindly intimated to the Ministry of Finance.

Warm regards,
Yours sincerely

(Ashok Lavasa)

All Secretaries to the Government of India.

Guidelines to preserve the All India Character of Centrally Sponsored Schemes (CSS)

The specific name and details of each scheme receive Parliamentary approval through budget provision and the process of appropriation. Therefore, releases of funds for such schemes and their utilization must necessarily be strictly in accordance with the Parliamentary authorization.

(ii) For each CSS, a set of core features consisting of the target group, funding pattern and delivery mechanism apart from its name, logo and tag line may be made unalterable by the State Governments.

(iii) The existing guidelines of the Centrally Sponsored Schemes (CSS) should be examined and important elements identified which define the national character of the scheme. There should be strict directions against any change to these at local level. Names like National Mission or Prime Minister's programme should be used to reflect the all India character of CSS.

(iv) All Centrally Sponsored Schemes should make suitable provisions for:

(a) Media Campaign by the Central Ministries/Departments concerned .
(b) Development of common creatives that can be passed on to the States for implementation.
(c) Utilizing Doordarshan and All-India Radio for effective communication.
(d) Short messages could also be sent to beneficiaries for building a national
perspective.

(v) Programmes like the Mid-day Meal and Food Security implemented through 0/0 Food & PDS may be added to the list of programmes under the District Development Coordination and Monitoring Committee (DISHA) framework.

(vi) Workshops may be organized by the Administrative Ministries to highlight the national character and the role of Central Government in the implementation of these schemes.

(vii) Ministries may take up evaluation of the performance of the schemes by experts as deemed appropriate.

(viii) Branding of Schemes with a well-recognized logo and a tag line is an effective way to project their All-
India character. The guidelines should clearly specify the places where the logo should appear in the advertisements, display boards, written communications, etc.

(ix) All Ministries administering CSS may be required to maintain data bases of beneficiaries indexed with their Aadhaar Card and Mobile numbers.

(x) Ministries may establish appropriate mechanism for communication with the beneficiaries of the Centrally Sponsored Schemes.

(xi) Centrally Sponsored Schemes may be launched simultaneously in several States by dignitaries such as Union Ministers, Member of Parliament etc., to give high visibility and publicity to the Schemes for the information of the public at large.

(xii) Regular campaigns may be conducted involving the beneficiaries to educate them on the features and benefits of the schemes. Success stories may be given wide publicity to provide role models to prospective beneficiaries and implementing agencies.

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Loss in increment in 7th CPC Pay Matrix - Demand of 3% Increment at all stages: Agenda Items for NAC Meeting

Loss in increment in 7th CPC Pay Matrix - Demand of 3% Increment at all stages: Agenda Items for NAC Meeting

Item No:2

3% Increment at all stages

In Para 5.1.21, the Commission has stated that it has constructed the Pay Matrix, which has two dimensions i.e. horizontal and vertical ranges. The vertical range is supposed to denote the pay progression with the level. The steps are to reflect the annual forward progression of three per cent in each level. More specifically under the Caption "Annual increment" in Para 5.1.38, the Commission has emphatically stated that the annual increment is being retained at 3 percent.

In the forward to the report, the Chairman Justice Shri AK Mathur (Para 1.19) writes "the prevailing rate of increment is considered quite satisfactory and has been retained". This apart in para 4.1.17, the Commission states that the various stages within a level moves upward @ 3% p.a.

Having stated categorically that a Govt servant must get his annual increment @3% of his pay, the recommendation that one’s pay on award of annual increment must move to the next cell in the matrix would become tenable only if the difference between the two cells is more than 3% of the Pay of the Govt servant.
From the chart annexed it could be seen that it is not so at many stages warranting a revision of the Pay Matrix at those level, where the employee gets less than 3% as has annual increment when he moves on to the next higher stage in the matrix.

ILLUSTRATION -I - LOSS IN INCREMENT

Pay Level	Sl.No. in the Pay Level (Cell)	Basic Pay in the Revised Pay Scale	Next above Basic Pay after adding 3% increment	Next above Basic Pay fixed as per pay matrix	Amount of loss to the employee	Actual increment rate %age
1	12	24900	25647	25600	47	2.81
1	26	37600	38728	38700	28	2.92
3	9	27600	28428	28400	28	2.89
3	16	34000	35020	35000	20	2.94
4	11	34300	35329	35300	29	2.91
4	22	47500	48925	48900	25	2.94
5	10	38100	39243	39200	43	2.88
5	20	51100	52633	52600	33	2.93
6	6	41100	42333	42300	33	2.91
6	9	44900	46247	46200	47	2.89

Recompute 7th CPC Minimum Pay & Multiplication Factor - Anomaly in computation of Minimum Wage: Agenda Item for NAC Meeting

Recompute 7th CPC Minimum Pay & Multiplication Factor - Anomaly in computation of Minimum Wage: Agenda Item for NAC Meeting

Item No 1

Anomaly in computation of Minimum Wage
In Para 1.29 of Chapter 1 of the 7th CPC report, the larned Chairman of the Commission Justice Shri AK Mathur has approvingly quoted the following observation their Lordship in the Supreme Court in the case of Bhupendranath Hazarika and Another Vs. State of Assam (SC 2013 (2) Sec.516)

"........ It should always be borne in mind that legitimate aspirations of the employees are not guillotined and a situation is not created where hopes end in despair. Hope for everyone is gloriously precious and that a model employer should not convert it to be deceitful and treacherous by playing a game of chess with their seniority. A sense of calm sensibility and concerned sincerity should be reflected in every step. An atmosphere of trust has to prevail and when the employees are absolutely sure that their trust shall not be betrayed and they shall be treated with dignified fairness then only the concept of good governance can be concretized. We say no more."

Naturally the recommendations of the 7th CPC ought to have been in consonance with the spirit of the observations made in Para 1.29, While determining the Minimum Pay (Chapter 4.2). The Commission is on record to state that it shall abide by the formula of Dr WR Aykroyd as amended by Supreme Court in the case of Workmen represented by Secretary Vs. Management of Reptakos Brett and Co. Ltd and Anr. on 31st October, 1991 (Equivalent citations: 1992 AIR 504, 1991 SCR Supl. (2) 129). In its submissions made to the Govt, the Staff Side had pointed out the errors and omissions crept in the computation of Minimum wage and its consequential impact. The Commission’s recommendations in this regard was clearly in violation of what has been stated in para 1.29 (quoted above). We annex for ready reference the extracts from our own submissions pertaining to this issue.

Our submission to Cabinet Secretary on 7th CPC:

"We are not in agreement with the methodology adopted by the 7th CPC in computing the minimum WAGE. We give hereunder briefly the reasons thereof.

The retail prices of the commodities quoted by the Labour bureau is irrational, imaginary and even absurd in respect of certain articles at certain places. The Staff Side had objected to the adoption of those rates in its meeting with the Commission on 9th June, 2015.

The adoption of 12 monthly average of the retail prices is contrary to Dr. Aykroyd formula. Same is the case with the reduction effected by the Commission on housing and social obligation factors. The house rent allowance is not a full compensation of the expenditure incurred by an employee for obtaining an accommodation. Therefore, no reduction on that count in arriving at the minimum wage is permissible. We may cite the minimum wage computation made by the 3rd CPC in this regard. The employees were in receipt of HRA even at that time. But still the 3rd CPC, and rightly so, adopted the 7.5% as the factor for housing. In respect of the addition to be made for children education and social obligation as per the Supreme Court judgement, (25%) the Commission has reduced the percentage to 15% on the specious plea that the employees are separately given children education allowance. The Children education allowance is not a full reimbursement of the expenses one has to incur. After the liberalization of the Education Sector where private parties were allowed to set up universities and colleges, the expenses for education had increased heavily. No concession or allowance is granted to the employees for educating the children beyond the higher secondary levels. The earlier Pay Commission has only tried to compensate a little in the increasing cost of education and that too at the primary level, since even the Governmental institutions had started charging abnormal tuition and other fees.

The website maintained for the Agriculture Ministry depicts the retail prices of commodities which go into the basket of minimum wage computation. Even though the rates quoted by them vary from the real retail prices in the market, it provides a different picture. If one is to take the rates quoted by them for different cities and make an all India average of the prices as on 1.7.2015, it will work out to Rs. 10810. It will result in the computation of the minimum wage of Rs. 19880. Adding 25% for arriving at the MTS scale, it will rise to Rs. 24850. To convert the same as on 1.1.2016, 3% will be added as suggested by the 7th CPC. The final computation will be Rs. 25,596, when rounded off shall be Rs. 26000.

The Andhra Pradesh State Pay Commission in its report has taken the commodity prices at Rs. 9830,- as on 1.7.2013 which works out to a minimum wage of Rs. 18080. The wage of MTS will then be Rs. 22600 as on 1.7.2013. The Corresponding figure for 1.1.2016 shall be Rs. 26758, rounded off to Rs. 27000.
The Staff side had computed the minimum wage as on 1.1.2014 at Rs. 26,000, taking the commodity price at Rs. 11344. The rates were taken on the basis of the actual retail prices in the market as on 1.1.2014 (average prices of 8 Cities in the country) substantiated by the documentary evidence of Cash bill obtained from the concerned vendors. As on 1.12016, the minimum wage work out to Rs. 29339, rounded off to Rs. 30,000.

The 5th CPC adopted the rate of growth in the economy (as reflected in the increase in the per capita net national produce at factor cost) over a period of ten years to arrive at the increase required to be made to arrive at the minimum wage. The per capita NNP at factor cost registered an increase of 65.28% over a period of ten years in 2013-14. If we apply the same percentage to the emoluments (Pay +DA) as on 1.1.2016 (assuming that DA will be 125% as on that date), the minimum wage as on 1.1.2016 for an MTS will have to be Rs. 26030, rounded off to Rs. 27000.

In para 4.2.9 of the report, the Commission has given a table depicting the percentage increase provided by the successive Pay Commissions, according to which the 2nd CPC had made a paltry increase of 14.2%. The 3rd CPC gave a rise of 20.6, 4th 27.6, 5th 31.0 and 6th CPC 54%. While the per centage increase had been in ascending order all along, the 7th CPC has sought to reverse that trend ostensibly for reasons unknown. It was the meager increase of 14% provided for by the 2nd CPC that triggered the volatile situation in the civil service and led to all India strike encompassing all employees which lasted for 5 days in 1960.

In the case of Bank, Insurance and many other Public Sector Undertakings wage revision takes place once in 5 years. In the recently concluded agreement, Bank employees were provided more than 15% increase.
After the implementation of the Pay Commission Report the AP State Employees have been given a wage structure based on a minimum wage for above the level of Central Government employees. In their case also wage revision does take place once in 5 years.

It could be seen from the above that the computation of minimum wage by the 7 CPC is prima facie wrong and computed on untenable premises and incorrect data. The minimum wage therefore requires re-computation and revision. Once the minimum wage gets revised, the fitment formula, the multiplication factor applied for determining the pay levels and the pay matrix itself will have to be consequently revised."

It could be seen from the above extract that the Minimum Wage as on 1.1.2016 could not have been computed at less than Rs 26000/- and consequently the multiplication factor ought to have been at 3.714. It is, therefore, demanded that the Minimum Wage and multiplication factor may be recomputed and Pay Level and Pay matrix changed in accordance with the revised minimum wage.

Abolition of Rent Free Accommodation Allowance-Recommendation of the 7th Central Pay Commission

7th CPC Abolition of Rent Free Accommodation Allowance - Directorate of Estates Order

18018/1/2017-Pol.III
Government of India
Ministry of Housing & Urban Affairs
Directorate of Estates

New Delhi, the 17th August, 2017

OFFICE MEMORANDUM

Subject:  Abolition of Rent Free Accommodation Allowance-Recommendation of the Seventh Central Pay Commission.

Based upon the recommendation of the Committee of Allowances formed under the aegis of the Seventh Pay Commission vide Para 7 of the Resolution No. 1-2/2016-IC dated 25th July, 2016, Government of India has inter alia decided that Rent Free Accommodation Allowance stands abolished with effect from 1st July, 2017 vide Resolution No, 11-1/2016-IC dated 6th July, 2017.

2. This order shall apply to all rent free accommodations allotted to Government employees under General Pool Residential Accommodation. DDOs of all concerned Ministries and Departments are hereby advised to take necessary action at their end.

3. This issues with the approval of the competent authority.

(Swarnali Banerjee)
Deputy Director to the Government of India

Travelling Allowance Rules - Implementation of the recommendations of Seventh Central Pay Commission, clarification on CTG etc

7^th CPC Travelling Allowance Rules, Clarification on CTG etc. - Railway Board Order

Government of India
Ministry of Railways
(Railway Board)

PC-VII No. 53
RBE No. 117/2017
No. F(E)I/2017/AL-28/41

New Delhi, dated 31.08.2017
01.09.2017

The General Managers,
All Indian Railways etc.
(As per Standard Mailing List)

Sub: Travelling Allowance Rules - Implementation of the recommendations of Seventh Central Pay Commission, clarification on CTG etc. reg.

In continuation to Board's letter of even number dated 24.08.2017 regarding implementation of recommendations of the Seventh Central Pay Commission relating to Travelling Allowance entitlements, the admissibility of CTG and Transportation of personal effects on Transfer and Retirement will be regulated as under:

(i) In case, the railway servant has been transferred prior to 01.07.2017 and has assumed charge prior to 01.07.2017, he will be eligible for CTG at ore-revised scale of pay. If the personal effects have been shifted after.01.07.2017, revised rates for transportation of personal effects will be admissible.

(ii) In case, the railway servant has been transferred prior to 01.02.2017 and has assumed charge on/after 01.07.2017, he will be eligible for CTG at revised scale of pay. As the personal effects would be shifted after-01.07.2017, revised rates for transportation of personal effects will be admissible.

(iii) in case of retirement, if a railway servant has retired prior to 01.07.2017, he will be eligible for CTG at pre-revised scale of pay. If the personal effects have been shifted after 01.07.2017, revised rates for transportation of personal effects will be admissible.

2. Hindi version will follow.

3. Please acknowledge receipt.

(Sonali Chaturvedi)
Dy. Director Finance (Estt.)
Railway Board