Ministry of Finance: Year End Review 2017 - Regarding 7th Central Pay Commission

Ministry of Finance: Year End Review 2017 - Regarding 7th Central Pay Commission

Enhancing the quality of life remained primary goal for Government when it put into implementation the recommendations of the 7th Central Pay Commission to benefit more than 48 Lakh Central Government Employees.

Department of Expenditure (DOE)

• General Financial Rules (GFRs), 2017 were released on 7th March, 2017 to enable an improved, efficient and effective framework of fiscal management while providing the necessary flexibility to facilitate timely delivery of services.
• 7th CPC - On 28th June 2017, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the recommendations of the 7th CPC on allowances with some modifications. The revised rates of the allowances came into effect from 1st July, 2017 benefitting more than 48 lakh Central Government Employees.

While approving the recommendations of the 7th CPC, the Cabinet had decided to set-up the Committee on Allowances (CoA) in view of substantial changes in the existing provisions and a number of representations received. The 7th CPC adopted a threepronged approach in examining a total of 197 allowances which involved an assessment of the need for continuation of each allowance, appropriateness of the set of people covered by the allowance and rationalisation which involved clubbing of allowances with similar objectives. Based on the examination on these lines, the 7th CPC recommended that 53 allowances be abolished and 37 be subsumed in an existing or a newly proposed allowance. For most of the allowances that were retained, the 7th CPC recommended a raise commensurate with inflation as reflected in the rates of Dearness Allowance (DA).

A new paradigm was evolved to administer the allowances linked to risk and hardship. The myriad allowances, their categories and sub-categories pertaining to civilians employees, CAPF and defence personnel were fitted into a table called the Risk and Hardship Matrix (R&H Matrix).

Source: DoE

Report of the Committee Funeral Allowance : 7th Pay Commission

Report of the Committee Funeral Allowance : 7th Pay Commission

Funeral Allowance (Para 8.17.54)

Existing Provision: When death of an employee occurs in peace areas, a funeral allowance of Rs. 6,000 is granted and mortuary charges are reimbursed in the case of Defence personnel.

Reasons mentioned by 7th CPC for recommending abolition: With the pay raises provided by successive Pay Commissions, this kind of an allowance has lost its meaning.

Demand:

Ministry of Defence: This allowance may not be discontinued considering the circumstances in which this allowance is granted. The rates may be enhanced by suitable multiplication factor.

Analysis and Recommendations of the Committee:
The Committee is of the view that this cannot be categorized as an allowance as it is not paid to the employee but to the Next of Kin. Para 8.2.3 of the 7th CPC Report also states that  "Allowance" should be used when it is paid to an individual and if it is paid as an administrative expenditure, it should be referred to as expense or expenditure. Considering the circumstances, continuation of this expenditure by the Government might be necessary. However, instead of calling it Funeral Allowance, it may be renamed as Funeral Expense, and the expenditure on this account, at the existing rate of Rs.6,000/- and mortuary expenses, may be directly borne by the concerned Unit and reflected in budget and accounts accordingly with further proviso that, whenever necessary, the concerned unit can pay this amount to Next of Kin of the deceased at the applicable rates.

Check the Detailed Report of the Committee on Allowances

Doing away with allowances under 7th CPC : Central Government employees will not get Family Planning Allowances

Doing away with allowances under 7th CPC : Central Government employees will not get Family Planning Allowances

GOVERNMENT OF INDIA
MINISTRY OF  FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-2447
ANSWERED ON-08.08.2017

Doing away with allowances under 7th CPC

2447 .    Shri A. K. Selvaraj

(a) whether the Central Government employees will not get Family Planning Allowances;

(b) whether it is a fact that the diet, haircutting and soap toilet allowances given to select categories of employee have been discontinued; and

c) whether it is also a fact that a raft of grants and allocations made to various sections of Government employees have been done away with or revised as per the recommendations of the Committee on Allowances, if so, the details thereof?

ANSWER

FINANCE MINISTER
(SHRI ARUN JAITLEY)

(a): The 7th Central Pay Commission recommended that Family Planning Allowance should be abolished. The Government has accepted the recommendation with effect from 1st July, 2017.

(b): The 7th Central Pay Commission recommended that Diet Allowance granted to deputationists in Bureau of Immigration should be abolished. The 7th Central Pay Commission (7th CPC) in paras 8.17.22 to 8.17.24 of its report recommended, inter-alia, that Haircutting Allowance and Soap Toilet Allowance admissible to Personnel Below Officer’s Rank of Defence Forces, as components of Composite Personal Maintenance Allowance(CPMA), should be increased by 50%. The Government has accepted these recommendations with effect from 1st July, 2017.

(c): The Committee on Allowances was set up in July, 2016, to examine the recommendations of the 7th Central Pay Commission pertaining to allowances.


ENGLISH VERSION  /  HINDI_VERSION

Transport Allowance (TPTA) : Report of the Committee on Allowances

Transport Allowance (TPTA) : Report of the Committee on Allowances

Transport Allowance (TPTA) (Para 8.15.53)

Existing Provisions: Granted to cover the expenditure involved in commuting between place of residence and place of duty. The existing rates are as under:

Officers drawing GP 10000 and higher, who are entitled to the use of official car, have the option to avail of the existing facility or to draw TPTA @ Rs.7000 + DA.

Differently abled employees are granted TPTA at double rates subject to a minimum of Rs.1000+DA.

Recommendations of 7th CPC: Transport Allowance is already fully DA indexed. Therefore, following rates of Transport Allowance are recommended:

Officers in Pay Level 14 and higher, who are entitled to the use of official car, will have the option to avail themselves of the existing facility or to draw the TPTA at the rate of Rs.15,750+DA pm.
Differently abled employees will continue to be paid at double rate, subject to a minimum of Rs.2,250 plus DA.

Demands:
I. National Council (Staff Side), JCM:

i. There should be only two levels for Transport Allowance, as under:
Level 9 and above
Rs.7500+DA (Higher TPTA Cities)
Rs.3750 + DA (Other Places
Below Level 9
Rs.3750+DA (Higher TPTA Cities)
Rs.1875 + DA (Other Places)

ii. Income Tax exemption, which was available for Transport Allowance, may be reintroduced.

II. Ministry of Health and Family Welfare: SAG Doctors should be paid Transport Allowance at the rates admissible to Joint Secretary in lieu of Staff Car.

Analysis and Recommendations of the Committee: The Committee notes that the Transport Allowance is fully indexed to Dearness Allowance and the rates have accordingly been revised by the 7th CPC. As the demands do not relate to any changes recommended by the 7th CPC, the recommendations of the 7th CPC on Transport Allowance may be accepted without any change.

When this allowance was introduced by 5th CPC, the entire amount was exempted from Income Tax. However, the Committee is not making any recommendations relating to raising of Income Tax ceiling on Transport Allowance as it is not within the purview of the Committee. The matter may be taken up separately with Department of Revenue.

Authority: www.doe.gov.in
Click to view the Report

Acceptance of the recommendations of the Committee on Allowances-7th CPC reg

Acceptance of the recommendations of the Committee on Allowances-7th CPC reg

No. 11022/1/2017-MS-II
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

New Delhi, dated the 25.07. 2017

To,
The Chief Secretaries of
All States/ Union Territories.

Subject: Acceptance of the recommendations of the Committee on Allowances-7th CPC reg.

Sir,

I am directed to enclose herewith a copy of the Department of Expenditure resolution No. 11-1/2016-IC, dated 6th July 2017 regarding on the above mentioned subject and to say that allowances as accepted by the Government related to House Rent Allowance, Leave Travel Concession and Child Education Allowance will also be applicable to the All India Services officers.

End: As above.

Yours faithfully,
(Rajesh Kumar Yadav)
Under Secretary to Government of India
Tel. 23094714

More info  @ DoPT

Inordinate delay in implementation of the report of the Committee on Allowances

Inordinate delay in implementation of the report of the Committee on Allowances

Shiva Gopal Mishra
Secretary
National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi - 110001

No.NC/JCM/2017

Dated: May 23, 2017

The Cabinet Secretary,
(Government of India),
Cabinet Secretariat,
Rashtrapati Bhawan,
New Delhi

Dear Sir,
Sub: Inordinate delay in implementation of the report of the Committee on Allowances
It is a matter of regret that, in spite of all the persuasions made by the Staff Side(JCM) there is inordinate delay in finalization of recommendations of the Ashok Lavasa Committee on Allowances. More than one year and three months have passed after implementation of the report of the VII CPC, but the employees are still getting allowances at the old rates as had been recommended by the VI CPC.

The Committee on Allowances took longer time while finalizing its recommendations, but it is a matter of deep regret that, even after submission of the report by the said committee, the same has not been made available to the Staff Side(JCM), therefore, we do not know what recommendations have been made by the said committee.

Staff Side(JCM), therefore, requests that the recommendations of the Allowances Committee should be made available to the Staff Side(JCM).

Moreover, it would be highly appreciated that, the Allowances should be implemented without any further delay, and the date of the implementation should be w.e.f. 01.01.2016.
With Kind Regards!

Sincerely yours,

(Shiva Gopal Mishra)
Secretary (Staff Side)

Source: NCJCM Staff Side

Committee on Allowances makes minor changes to allowances

Committee on Allowances makes minor changes to allowances

The Committee on Allowances has made only minor changes to allowances on the recommendation of the 7th Pay Commission.

The committee has also dittoed the pay commission recommendation of house rent allowance (HRA) of 24, 16 and 8 per cent respectively, instead of the present rate of HRA - of 30, 20 and 10 per cent of basic pay.
A top Finance Ministry official, who did not wish to be named told us after receiving the Committee on Allowances report from Finance Secretary Ashok Lavasa, who led the committee, the report is being currently examined by the Department of Expenditure.

The 7th Pay Commission, led by Justice A K Mathur, earlier proposed abolition of 52 allowances and subsuming of another 36 allowances into larger existing ones out of total 196 allowances, which triggered resentment among central government employees that government complied with formation of the Committee on Allowances.

The Committee on Allowances was constituted in June last year after the government gave nod the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances.

The Committee on Allowances in its report agreed with the pay commission's recommendation for reducing house rent allowance (HRA) and made minor changes in little allowances for central government employees, the Finance Ministry official told us.

The recommendations of allowances would be finalised by May or June after examining by the empowered committee of secretaries and following that it will be placed before the Cabinet by Finance Minister Arun Jaitley, he said.

No matter when the recommendations are finalised, the new allowances will be made effective from January 1 last year, the official asserted.

Central Government Employees not to go on strike on May 23 over 7th Pay Commission allowances

Central Government Employees not to go on strike on May 23 over '7th Pay Commission allowances'

New Delhi: Central government employees' will not to go on strike on May 23 in protest at the "government inaction" on fulfilling their demands, including hike in allowance as per the 7th Pay Commission recommendations.

No central government office will be closed at any part of the country and the trains will also be running on May 23.

The Confederation of central government employees, has temporarily postponed the strike scheduled on May 23 following assurance of government to hike allowances shortly.

"The strike has been put on hold for now following the assurance of government. However, the confederation will make sure that the genuine demands of the employees are met with," a top leader of confederation, who did not wish to be named told us.

"In view of government's assurance to hike allowances shortly, our strike on May 23 stands deferred," he added.

The Confederation of central government employees had given the strike call protesting against the delay in allowance hike as per the revised 7th Pay Commission recommendations.

The confederation is opposed to the government's delaying tactics to hike allowances of central government employee.

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.

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, which triggered resentment among central government employees that governments complied with formation of the Committee on Allowances.

The Committee on Allowances had submitted its report to Finance Minister Arun Jaitley on April 27.
The report is being currently examined by the Department of Expenditure. It will be placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th Pay Commission recommendations and to firm up the proposal for approval of the Cabinet.

The central government employees now get all allowances except dearness allowance at the old rates until the cabinet approval of higher allowances.

7th Pay Commission: Demanding higher allowances is Realistic says Finmin

7th Pay Commission: Demanding higher allowances is "realistic" says Finmin

New Delhi: The central government employees unions demanding higher allowances, a realistic view of what government can afford, the Finance Ministry sources have confirmed.

Speaking to senior Finance Ministry sources were keen to the demands being met, insisting the work of the ‘Committee on Allowances’ to submit its final report within May, will determine what is doable.

"The government has a lot of pressures on the purses this year and higher allowances obviously is a key one. Demands are reasonable and realistic. But the government will not be held hostage," said one senior source last night.
They told "The issue of higher allowances is currently under consideration by the 'Committee on Allowances'.
In line with their mandate, the committee will produce a report within May.

This report will form the basis of negotiations with the central government employees unions. Any higher allowance settlement emitting from these negotiations must be affordable and sustainable.

The National Joint Council of Action (NJCA), which is a centralised union of several central government employees unions, has told cabinet secretary that the higher allowances must be given with retrospective effect from January 1, 2016.

The committee will have regard to the national finances before accepts NJCA above demand, the source said.

The central government employees unions had threatened to call for nationwide strike in May due to delay in implementation of higher allowances.

In response to this, the sources said, "the government expects the 'Committee on Allowances' to report by May or even before then. They are going to be very difficult discussions and negotiations."

The 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa was formed in July last year for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.
Later, the Finance Minister Arun Jaitley extended the deadline for report submission to February 22, 2017 but committee has not yet submitted its report.

The central government employees got theirs arrears of basic pay arising from implementation of the 7th Pay Commission recommendations in one go in August salaries. The hike in basic pay has been made effective from January 1, 2016 but they are still awaiting for the higher allowances.

The employees now get all allowances except dearness allowance, according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

7th CPC Conclusive meeting of the Committee on Allowances

7th CPC Allowance Committee Report - Next Cabinet approval sought Conclusive meeting of the Committee on Allowances held on 6th April, 2017

Shiva Gopal Mishra
Secretary

Ph: 23382286
National Council (Staff Side)
Joint Consultative Machinery for Central government Employees
13-C, Ferozshah Road, New Delhi - 110001
E Mail : nc.jcm.np@ gmail .com

No.NC-JCM-2016(Allowances)

Dated: April 7, 2017

All Constituents of NC/JCM(Staff Side),

Dear Comrades!
Sub: Conclusive meeting of the Committee on Allowances
As you are aware, conclusive meeting of the Committee on Allowances was held yesterday, i.e. on 6th April, 2017. We hope that, report of the said committee will be submitted to the Cabinet within a week's time.

Comradely yours,
sd/-
(Shiva Gopal Mishra)

Source: http://ncjcmstaffside.com/

7th Pay Commission: Government to implement soon on higher allowances, says unions

7th Pay Commission: Government to implement soon on higher allowances, says unions

New Delhi: Central government employees unions today said the government has promised that it will implement soon the 'higher allowances' under 7th Pay Commission recommendations, with retrospective effect from August 2016.

A top union leader told that the employee representatives have sought an early finalisation of the 'Committee on Allowances' report.

"We were promised in August, 2016 that the higher allowances (as per the 7th Pay Commission) would be given to us within four months, but we haven't got its till now," the union leader said.

Meanwhile, the 'Committee on Allowances' has sought views from different ministries on 14 allowances, a PTI report said, citing sources.

These allowances include accidental allowance, outstation detention allowance, trip allowance, and ghat allowance.

The government in July last year had formed the 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa, for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.

Later, the Finance Minister extended the deadline for report submission to February 22, 2017.

Minister of State for Finance Arjun Ram Meghwal on March 10 had again clarified in Lok Sabha that the 'Committee on Allowances' is yet to submit its report.

Meghwal added the 'Committee on Allowances' is now in the process of finalising its report and the government would take a decision after the report is submitted.

Meghwal also explained why the 'Committee on Allowances' has taken more time to finalise its report.

"The 'Committee on Allowances' has taken more time than was initially prescribed in view of large number of demands received," he clarified.

"The committee has received a large number of demands on allowances and even now receives demands in this regards. All the demands have been diligently examined," the minister also said.

The 'Committee on Allowances' is likely to finalise its views on house rent allowance (HRA) at its next meeting, reported PTI, citing sources.

The 7th Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on type of cities. The Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent, respectively 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.

Source: TST

Meeting with the Committee on Allowances

Meeting with the Committee on Allowances

Shiva Gopal Mishra
Secretary

Ph.: 23382286
National Council (Staff Side)
13-C, Ferozshah Road, New Delhi - 110001
E Mail : nc.jcm.np@gmail.com

No.NC-JCM-2016(Allowances)
The Secretary(Expenditure),
Ministry of Finance,
(Government of India),
North Block,
New Delhi

Dated: December 29, 2016

Dear Sir,
Sub: Meeting with the Committee on Allowances

The Staff Side, National Council(JCM) had a meeting with the Committee on Allowances on 1st September, 2016, wherein it was advised us to send the committee a detailed note. Subsequently, on 16th September, 2016 we sent a detailed note on the allowances to your goodself with the hope that the Committee on Allowances would consider the same, and in case of reservations, they would at least hold a meeting on the detailed memorandum submitted by the Staff Side(JCM).

Almost four months have passed without any outcome. All the Central Government Employees' are quite agitated as well as are having mental agony because allowances of the VII CPC, have not been implemented.

You are, therefore, requested to fix-up a meeting of the Committee on Allowances, at an earliest to resolve the issues placed in the memorandum of the Staff Side(JCM) on various allowances.

Here it is worth-mentioning that, the issues related to DoP&T were discussed by the Secretary (DoP&T) with the Staff Side on 25th October, 2016. The Staff Side is of firm opinion that, there should be resolution to the demands, and these Allowances should be implemented with effect from 01.01.2016, i.e. the date from which VII CPC has been implemented.

Sincerely yours

(Shiva Gopal Mishra)
Secretary(Staff Side)

Source : http://ncjcmstaffside.com

7th Meeting of Committee on Allowances constituted to examine the recommendations of 7th Central Pay Commission regarding Allowances

Allowances in 7th CPC: 7th Meeting of Committee on Allowances will be held on 14th Dec, 2016

No. 11-1/2016-IC
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
Department of Expenditure
(Implementation Cell)

Room No- 216, Hotel Ashok,
Chankyapuri, New Delhi.
Dated: 07.12.2016

OFFICE MEMORANDUM

Subject: 7th Meeting of Committee on Allowances constituted to examine the recommendations of 7th Central Pay Commission regarding Allowances.

The undersigned is directed to inform that the 7th Meeting of Committee on Allowances will be held on 14th December, 2016 at 3.00 PM in Room No. - 72, North Block, New Delhi under the chairmanship of Finance Secretary & Secretary (Expenditure) to discuss the allowances relating to Ministry of Defence and Department of Atomic Energy.

2. As per the request of the Department of Atomic Energy received vide ID Note No. 8l9/2016-SCS/14690 dated 4th November 2016, the undersigned is directed to request the DAE to send the names (not more than two from Federation) of the National Federation of Atomic Energy Employees (NFAEE) and officers of DAE, who will be attending the aforesaid meeting by 9th December, 2016 for making necessary arrangements.

sd/-
(Abhay N. Sahay)
Under Secretary (IC-7th CPC)

To
Department of Atomic Energy
(Shri S. S. Prasad Rao, US - SCS),
Anushakti Bhawan, C S M Marg.
Mumbai - 400 001
(Tel-022-22026861

Source: Confederation

Meeting of Committee on Allowances held on 25.10.2016 : NC JCM Staff Side

Meeting of Committee on Allowances held on 25.10.2016 : NC JCM Staff Side

Brief of the meeting of the Standing Committee (JCM) and also meeting of the Committee on Allowances held today

Shiva Gopal Mishra
Secretary

Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
Central Government Employees
13-C, Ferozshah Road, New Delhi - 110001
E Mail : nc.jcm.np@gmail.com

No.NC/JCM/2016

Dated: October 25, 2016

All Constituents of NC/JCM

Dear Comrades!
Sub: Brief of the meeting of the Standing Committee(JCM) and also meeting of the Committee on Allowances held today

A meeting of the Standing Committee of the National Council (JCM) was held today under the Chairmanship of Secretary (DoP&T), wherein Staff Side (JCM) shown anguish against total collapse of the JCM Machinery.

The Secretary (DoP&T), who is also Chairman of the NC/JCM Standing Committee, assured that, he would try to improve functioning of the JCM Machinery as a whole.

In the said meeting, the agenda sent to the DoP&T for the meeting of the NC/JCM Standing Committee was discussed in detail, and on most of the items reply of the DoP&T was “the issue will be examined”.

Subsequently, in the meeting of the Committee on Allowances, held today, the allowances pertaining to the DoP&T, particularly Children Education Allowance, Night Duty Allowance, Overtime Allowance, Unreported Allowance, Small Family Allowance, Risk Allowance, Cash Handling Allowance, Uniform(Dress) Allowance, were discussed in detail.

It was assured by the Secretary(DoP&T) that, the issues raised by the Staff Side(JCM) would be taken up in the Allowance Committee meeting.

Comradely yours,
sd/-
(Shiva Gopal Mishra)

Source: http://ncjcmstaffside.com/