7th CPC Recommendations On Annual And Promotional Increment

7th CPC Increment : Recommendations on Annual and Promotional Increment

7th CPC Increment :  The 7th Pay Commission has recommended on the rate of annual increment is being retained at 3 percent.

Illustrative Examples in Respect of annual increment…

Withholding Annual Increments of Non-performers after 20 Years : There is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course. The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted. This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments. The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.

This will act as a deterrent for complacent and inefficient employees. However, since this is not a penalty, the norms for penal action in disciplinary cases involving withholding increments will not be applicable in such cases. This will be treated as an “efficiency bar”. Additionally, for such employees there could be an option to leave service on similar terms and conditions as prescribed for voluntary retirement.

Grant of First Annual Increment in Recruits Pay : The main demand of the Services in this connection is that the existing stipulation that next increment will be granted from the date of attestation or mustering be done away with. They have pointed out that trades whose skill requirements are low and whose entry level qualifications are lower invariably get attested or mustered earlier and thus are entitled to the next annual increment earlier than trades whose training period is longer.

Analysis and Recommendations : The Commission is of the view that grant of next increment in the case of recruits should not place those with higher entry level qualifications at a disadvantage. The Commission, accordingly recommends that the date of enrolment should be reckoned for the purposes of first increment for all recruits who are finally successfully attested/mustered.

Authority: www.7cpc.india.gov.in

Fixation Of Pay And Grant Of Increment In Revised Pay Structure Clarification – CGDA

Fixation of Pay and grant of increment in revised pay structure clarification – CGDA

“Further, they have clarified that if the date of next increment on 01.07.2016 for a post held on 01.01.2016 falls after the date of promotion, then the date of next increment for the post held on 01.01.2016 has no relevance for option. Thus, the option cannot be exercised from 01.07.2016 to switch over to revised pay structure”

No.AN/XIV/14164/7thCPC/Corr/Vol-II

Dated: 18/10/2017

To

All PCsDA/CsDA

PCof A(Fys) Kolkata

Subject : Fixation of Pay and grant of increment in revised pay structure clarification – regarding.

The matter regarding fixation of pay under 7th CPC in respect of employees promoted between 1st day of January and the date of notification of CCS(RP)Rules 2016 and methodology to be adopted in such cases has already been furnished by HQrs vide letter bearing No. AN/XIV/14164/7th CPC/Corr/Vol-I dated 8.09.2016. Further, on receipt of Dept of Expenditure OM dated 29.09.2016 , the same was circulated to all controllers for necessary action regarding re fixation of pay in such cases. Also , references on above subject received from Controllers was suitably replied in the light of above orders.

2. Of late, this HQrs has been receiving various references regarding application of the orders issued by AT-II Section of this office vide their letter No. AT/II/2703/Clar dated 28.04.2017 thereby seeking clarification regarding availability of option to switch over to 7th CPC from 07/2016 in cases where the official has been promoted between 1st January 2016 and the date of notification.

3. The matter was referred to MoD(Fin.) DAD Coord for taking up the matter with Ministry of Finance (Dept. of Expenditure) for issuing necessary clarification in this regard.

4. In reply, Ministry of Finance, Department of Expenditure vide their No. 300346981 dated 14.09.2017 received under MoD(Fin) ID No. 1333/C/2017 dated 18.09.2017 have clarified that -“the option to switch over to the revised pay structure either on 01.01.2016 or the date of next increment is applicable under Rule 5 of CCS(RP)Rules 2016 in case of post held on 01.01.2016.

Further, they have clarified that if the date of next increment on 01.07.2016 for a post held on 01.01.2016 falls after the date of promotion, then the date of next increment for the post held on 01.01.2016 has no relevance for option. Thus, the option cannot be exercised from 01.07.2016 to switch over to revised pay structure . (copy attached)

5.This is for information and necessary action.

sd/-

(Kavita Garg)

Sr. Dy.CGDA (AN)

Reference Orders:

Fixation of Pay under CCS (RP) Rules 2016: Illustration

Fixation of pay for employee promoted between 01.01.2016 and Notification

Authority: www.cgda.nic.in

CGDS - Fixation Of Pay For Employee Promoted

Fixation of pay for employee promoted between 01.01.2016 and the date of issue of CCS(RP) Rules 2016

Government of India

Ministry of Finance

Department of Expenditure

(E.III.A Branch)

Reference: Notes in Ministry of Defence File No. 1333/C/2017

Ministry of Defence (MoD) may kindly refer to their preceding notes in File No 1333/C/2017 relating to fixation of pay for employee promoted between 01.01.2016 and the date of issue of CCS(RP) Rules, 2016.

2. The matter has been considered and it is informed that the option to switch over to the revised pay structure either on 01.01.2016 or from a later date than 01.01.2016 i.e., on the date of promotion or the date of next increment, is applicable under Rule 5 in case of post held on 01.01.2016. Thus, if the date of next increment on 01.07.2016 for a post held on 01.01.2016 falls after the date of promotion, i.e., 03.06.2016 in this case, then the date of next increment for the post held on 01.01.2016 has no relevance for option, as this post is no longer held on the date of next increment. Thus, option cannot be exercised from 01.07.2016 to switch over to the revised pay structure.

3. This issues with the approval of Joint Secretary (Personnel).

sd/-

(Ram Gopal)

Under Secretary (E.III.A)

AFA (DAD Coord), M/o Defence(Fin), South Block, New Delhi.

M/o -Finance, D/o Expenditure, I.D. No. 300346981 dated 14.09.2017

Order Copy

Authority: www.cgda.nic.in

Ministry Of Defence Issued Clarification Of Fixation Of Pay Under CCS (RP) Rules 2016

Ministry Of Defence Issued Clarification Of Fixation Of Pay Under CCS (RP) Rules 2016

Ministry of Defence (Finance)

DAD-Coord

Room No.24-A, South Block, New Delhi

Subject : Fixation of Pay under CCS (RP) Rules 2016: Clarification regarding.

CGDA’s office UO Note No.AN/XIV/14164/7th CPC/Corr/Vol-II dated 30.06.2017 on the above subject placed at pages-1-2 ante may kindly be perused.

2.Rule 5 of CCS(RP) Rules 2016 prescribes that

i) A Government servant may elect to continue to draw pay in the existing pay structure until the date on which he earns his next increment in the existing pay structure or until he vacates his post or ceases to draw pay in the existing pay structure.

ii) Provided further that in cases where a government has been placed in higher pay or scale between 01.01.2016 and the date of notification of these rules (25.07.2016) on accounts of promotion or up-gradation, the Government servant may elect to switch over to the revised pay structure from the date of such promotion or up-gradation, as the case may be.

3.The relevant detail of the instant case is appended below:

(i) Shri Vinod Anand, IDAS (Retd) was promoted from Junior Time Scale to Senior Time Scale with effect from 03.06.2016. His pay was fixed on his promotion as under:

iii) Department has earlier referred the case to MoD D (Civ) [nodal wing of MoD dealing with pay matters] vide UO Note dated 28.02.2017 (P-9/c) duly supported with orders of pay fixation carried out by Ministry of Home Affairs and UPSC (P-5/C & overleaf). MoD D (Civ) clarified (P-10/C) that the provisions of Rule 5 of CCS (RP) Rules 2016 arc very clear and opined that the pay fixation order of UPSC seems to be correct and in consonance with the provisions mentioned in CCS (RP) Rules. However, MoD D (Civ) also mentioned that in case further clarification is required matter may be referred;: to Ministry of Finance, Department of Expenditure.

(iv) CGDA’s office after having re-examined the case in light the clarification of MOD D(Civ-l) has opined that that a Government servant who has already vacated the post before 01.07.2016 on account of promotion/up-gradation cannot continue in the pre-revised scale up to the date of increment 07/2016 and hence can either elect to switch over to revised pay structure from 01.01.2016 or from the date of such promotion as laid down under Rule 5 of CCS (RP) Rules (P-2/C).

3. Ministry has been requested to take up the matter with Ministry of Finance, Implementation Cell for clarifying whether the pay fixation order as affiluied by MoD(Civ-I)’ can be implemented for regulation of pay fixation under 7th CPC. The case has been sent with the approval of Jt. CGDA.

4.The matter has been examined and it appears that provisions contained in rule 5 of CCS(RPR) Rules, 2016 are not absolutely in agreement with each other since different interpretations have been made by various organizations viz. CGDA and MoD D(Civ.)/UPSC/Ministry of Home Affairs to deal with the cases of pay fixation where individuals granted promotions after 01.01.2016 have opted for benefit of pay fixation with effect from the date of next increment viz. 01.07.2016 in the existing pay structure and then wished to switch over to CCS(RPR) Rules, 2016. In the instant case if the case is strictly regulated in accordance with second proviso to rule 5 of CCS (RP) Rules, 2016, the same puts the individual to a considerable recurring loss in pay fixation as brought out in pa 3(i) & (ii) above. Hence, the matter needs to be examined by the nodal ministry viz. Ministry of Finance, Department of Expenditure for issue of instructions with regard to manner of pay fixation in such cases.

5.In view of the position explained above, if kindly approved we may request Ministry of Finance, Implementation Cell to examine the issue and favour this Ministry with clarification as the matter is not free from doubt in regard to manner of fixation of pay in respect of officials promoted/upgraded during 01.01.2016 till the date of notification viz. 25.07.20.16, who have opted to switch over to CCS(RP) Rules wef date of next increment viz 1.7.2016.

sd/-

(Anu Arora)

AFA (DAD-Cord)

Order Copy

Authority: www.cgda.nic.in

Denial of Bunching Increment : 7th CPC Bunching Anomaly

Denial of Bunching Increment : 7th CPC Bunching Anomaly

7th CPC Bunching Anomaly : Denial of Bunching Increment due to anomlay in fixing the next stage (Cell) in each pay level with less than 35 increment rate.

Item — 2 —DENIAL OF BUNCHING INCREMENT DUE TO ANOMALY IN FIXING THE NEXT STAGE (CELL) IN EACH PAY LEVEL WITH LESS THAN 3% INCREMENT RATE.

(1) As per the Finance Ministry OM dated 07.09.2016, the grant of bunching increment is subject to the condition that the difference between the lower pay and higher pay should be at least 3%. This condition adversely affects many of the employees. Contrary to the claim of the 7th Pay Commission that increment rate of 3% is maintained, in many pay levels, the difference between lower cell and next higher cell is less than 3% showing that increment rate is less than 3%. Due to this inherent anomaly is granting justified (3%) increment the employees should not be made to suffer in the case of bunching. It is not the fault of the employees but due to faulty increment rate fixed by the commission in each pay level. This anomaly is to be set right by withdrawing the 3% condition from the Finance Ministry orders dated 01.09.2016.

(2) The pay as per the 7th CPC of MTS drawing pay of 7210 and 7430 in the pre-revised pay is bunched and fixed at Rs.19700. As per the bunching orders issued by Finance Ministry, the official drawing Rs.7430 in the pre-revised scale will get additional increment and will be fixed at Rs.20300/- with effect from 01.01.2016. But the MTS officials drawing Rs.7660/- in the pre-revised pay are also getting revised pay fixed at Rs.20300 with effect from 01.01.2016. It is requested that to remove the anomaly, the MTS officials who are drawing Rs.7660/- in the pre-revised scale may also be made eligible to get additional increment

Source: http://confederationhq.blogspot.in/

7th CPC Increment Anomaly – Annual Increment Rate Less than 3% in Pay Matrix

7th CPC Increment Anomaly – Annual Increment Rate Less than 3% in Pay Matrix

Annual Increment is Less than 3 Percent in Pay Matrix – Confederation Anomaly Point

Item — I – ANOMALY IN INCREMENT RATE

As per clause(C) of the terms of reference of the National Anomaly Committee — where the official side and the staff side are of the opinion that any recommendations is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the commission assigning any reason — it constitutes an anomaly.

Regarding annual increment the recommendations of seventh CPC are as follows:

i. 7th CPC Report — Highlights of Recommendations –

SL — 7 — Annual Increment — The rate of annual increment is being retained at 3 percent.

ii. 7th CPC Report — Forward

Para 1.19 — The prevailing rate of increment is considered quite satisfactory and has been retained.

iii. 7th CPC Report — Chapter 4.1 —Principles of Pay determination

Para- 4.1.17 — The various stages within a pay level moves upwards at the rate of 3 percent per annum.

iv. 7th CPC Report — Chapter 5.1 — Pay Structure (Civilian Employees)

Para 5.1.38 — Annual Increment

“The rate of annual increment is being retained at 3 percent”

Para 5.1.21 — The Vertical range of each level denotes pay progress within that level. That indicates steps of annual financial progression of 3 percentage within each level.

Contrary to the above principle laid down by the 7th CPC, the actual increment rate in the Pay levels of the Pay matrix are less than 3% as illustrated in the Table below:


ILLUSTRATION-I — LOSS IN INCREMENT

ILLUSTRATION — 2

In Level — 2, Cell — 2, the pay is shown as 20500. After giving one increment of 3% it should be 21115/- but the next cell is only 21000 (Level-2, Cell-3). Next stage should be 21115+633=21748 but the next cell is only 21700 (Level-2 Cell-4).

In Level — 6, Cell 14 should be 50500 + 1515 = 52015 whereas it is given only 52000.

From the above it can be safely concluded that

• i. Recommendation of the Pay Commission regarding increment rate is in contravention of the principle or policy enunciated by the 7th Pay Commission, Hence it constitutes an anomaly.
• 
  
• ii. In many stages, eventhough the increment is shown as 3%, it is rounded off to the next below amount causing financial loss to the employees.
• 
  
• iii.In the sixth CPC, while calculating increment, if the last digit is (one) or above, it used to be rounded off to next 10 (Ten). So in this Pay Matrix also if the amount is 10 (Ten) and above, it should be rounded off to the next above 100 (hundred).
• 
  
• iv. Even if the difference may look small (in percentage) it will also have long term impact on the employees promotion inviting heavy financial loss. The following illustration will reveal.

Illustration
1. Pay Level – 6
2. Cell (Stage) in the Pay Level – 8
3. Basic Pay in the Revised Scale – 44900
4. Actual Pay after adding 3% annual increment – 46247
5. Basic Pay fixed as per the Pay Matrix – 46200
6. Loss of amount to the employee in the increment – 47
7. Pay on promotion to next Level if fixed as per serial 4 above – 49000
8. Pay on promotion to the next level, if fixed as per serial – 5 above – 47600
9. Loss per month on promotion – 1400

Increment loss illustration
Thus, for a loss of Rs.47/- only in the Annual increment, the employee will suffer a recurring loss of Rs.1400/- per month during his/her promotion to the next level and this loss will have cumulative effect on rest of the period of the service career with financial loss on Dearness Allowance (DA) and further promotions and also Pensionery benefits.

The above anomalies are to be rectified.

Source: http://confederationhq.blogspot.in/