confederation of central government
TRANSCRIPT
CONFEDERATION OF CENTRAL GOVERNMENTEMPLOYEES AND WORKERS
31 Ferose shaw Road,New Delhi,. 110 001.
Phone: 65903935Fax: 011 2510 5324
President: Com.S.K. Vyas: 9868244035Working President. Com.C.C. Pillai: 9811213808Secretary General: Com.K.K.N.Kutty 9811048303
Dated: 28th December, 2006The ChairmanSixth Central Pay Commission2nd Floor,ICADR BuildingPlot No. 6 Vasanthkunj Institutional AreaPost Bag No. 1 Vasnathkunj Post OfficeNew Delhi. 110 070.
Dear Sir,
We submit herewith our Memorandum to the VI Central Pay Commission on behalf of the non-gazetted employees of various Ministries/Department of Govt. of India whose Federations, Unions, Associations are affiliated to this Confederation.
We have already sent this Memorandum to your Office through e-mail. Being part of the Staff Side of the JCM National Council, we have adopted and endorsed the formulations and proposals made by the Staff Side in their Memorandum. The same forms part of our memorandum.
On certain issues which are not covered in the memorandum of the Staff Side, we have submitted our formulations and proposals in Part-II of this memorandum.
We shall be grateful if an opportunity is granted to us to present our case before the Commission on the issues covered herein.
Thanking you,Yours faithfully,
K.K.N. Kutty Secretary General.
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INDEXPart I
Chapter No. Name of the Chapter Page No.
I Background 3-4II Employment under Central Govt. 5-11III State of the economy and financial resources 12-18IV Principles of determination of pay 19-26V Proposed pay structure 27-28VI Allowances 29-46VII Women employees 47-48VIII Special duty allowance 49-50IX Miscellaneous 51-55X Extraneous matters 56-57
Part II
I Group D Staff 58-60II Office Staff in non Sectt. organisations 61-63III Stenographers 64-65IV Other common categories 66V Care takers 67-68VI Staff Car Drivers 69VII Electronic Data Processing Staff 70VIII Canteen employees 71IX Cash handling allowance 72X Leave entitlement 73XI Assured career progression 74-75XII Transfer policy 76-78XIII Canteen facilities 79
Annexure 80-86
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PART - IChapter I
Background:
The 6th Central Pay Commission was set up on 5 th October, 2006, i.e.,
approximately 13 years after the 5th CPC was set up. The recommendations of the last
three Pay Commissions to set up a Permanent Wage Body with Constitutional Status and
authority were not found acceptable by the government. The 5th CPC, therefore, as an
alternative, had recommended for decennial revision of Wages in a time-bound manner.
The relevant recommendation of the 5th CPC as contained in Para 171.12 is reproduced
below:
“In case for any reason Government finds itself unable to set up a permanent pay body, it should at least concede the right of Central Government employees to have a complete pay revision once in 10 years. This would mean that if the date of implementation of the Fifth Pay Commission is 1.1.96, the date of implementation of the Sixth Pay Commission should be pre-determined as 1.1.2006 irrespective of when the next Pay Commission is actually appointed. However, the Government should also take note of the fact that it generally takes a Pay Commission a period of about three years to complete its deliberations and therefore, the next Pay Commission should be appointed latest by 1.1.2003, so that its report becomes available by 1.1.2006.
1.2 Accordingly, the Staff Side of the JCM had raised the demand for setting up 6 th
Central Pay Commission in the year 2003 itself in the forum of National Council of JCM.
The Govt. initially expressed their inability to consider this demand on the plea of
financial stringency. Later, stating that the employees were being granted 100%
neutralization of the rise in price in the form of DA and 50% of such compensation had
been merged with Pay for the purposes of all allowances including D.A., the Govt.
rejected the demand for another Pay Commission, thus making the intent of an impending
wage freeze loud and clear.
1.3 In this background the organizations participating in the JCM met in a convention
at New Delhi on 17.2.2005, finalized a 20 point charter of demands, (which inter alia
included the demand for setting up the 6th Central Pay Commission) adopted a
declaration indicating unambiguously their intention to resist the unjustifiable stand of
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the Govt. and set up a Joint Council of Action to spearhead the movement to its logical
end. Despite the sober pleadings and united and democratic action programmes, the JCA
could not elicit any positive response from the Government. In the face of the inflexible
attitude of the Govt. the JCA had to perforce call upon its constituents to prepare for an
inevitable strike action to commence from 1.3.2006. Informal discussions were held with
the Secretary Personnel and later with the Cabinet Secretary but the stalemate continued,
for no assurance was held out to set up the 6th CPC. The JCA along with the constituent
organizations served the strike notice on 7th Feb.2006. The Prime Minister indicated the
Government’s willingness to set up the 6th CPC in a Press Conference, which paved the
way for a meaningful negotiation on 15.2.2006. Agreement was reached and the strike
action was averted. However, it took about 9 months for the Government to ultimately
issue the notification setting up the 6th Central Pay Commission.
1.4 In this background, we heartily welcome the Commission.
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Chapter II.Employment under Central Govt.
As on 1st March 1995, the number of civilian employees in Central Govt. was
38.92 lakhs against the sanctioned strength of 42.18 lakhs of which 41% was in
Railways, 13% in Defence, 18% in the Postal and Telecommunications, 14% in the
Ministry of Home affairs (mostly comprising of Para-military Forces) and the rest 14% in
other Ministries and the Indian Audit and Accounts Department. The number of men in
position came down to 30.88 lakhs (as against the Sanctioned strength being 35.59 lakhs)
in 2005. [see Table 2.1].
Table-2.1
Statement showing Sanctioned Posts and Men in position department-wise
Year Raialway Defence P&T OtherDeptts.
HomeAffairs
TotalSanctioned strength
Total Men in Position
1 2 3 4 5 6 7 81995-96 17.1
15.95.95.1
7.57.2
6.05.4
5.75.4
4217932 3892778
1996-97 17.015.0
5.95.1
7.57.3
6.15.5
5.95.4
4218194 3894948
1997-98 15.614.5
5.85.0
8.67.9
6.05.3
5.95.7
4192735 3847049
1998-99 15.114.0
5.85.0
7.77.1
6.05.3
6.05.7
4067049 3729274
1999-00 16.815.8
5.85.0
7.77.1
5.34.7
6.15.8
4172031 3855316
2000-01 15.615.5
5.85.0
3.02.8
5.24.7
6.46.1
3606482 3426018
2001-02 16.315.1
4.73.5
2.92.7
5.14.5
7.36.9
3633006 3289849
2002-03 16.314.8
4.73.5
2.82.6
5.14.5
7.36.9
3620183 3236503
2003-04 16.214.5
4.73.5
2.31.9
5.24.5
7.26.9
3560433 3128134
2004-05 16.014.3
4.73.5
2.31.9
5.14.4
7.56.8
3559831 3088009
Figures in columns 2 to 6 are in lakhs rounded to one decimal point and actual figures given in Column 7 & 8 representing total figures.Figures given in second line represent men in position in each year.
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The percentage decrease of man power over the years had been 10.6% in Railways,
31.4% in Defence, 73.6% in P&T (the high percentage being on account of
Corporatisation of Telecom Dept. into MTNL & BSNL) and 18.5% in other employing
Ministries. There had been a net increase of 25.9% in the case of Home Ministry mainly
accounted for by the rise in the Para-military personnel from Rs.5.4 lakhs in 1996 to 6.8
lakhs in 2005. There had been net decrease of 20.6% in the total number of Central Govt.
employees between 1996 and 2005. The Men in position came down from 38.9 lakhs in
1996 to 30.9 lakhs in 2005 [Table 2.2].
Table-2.2
A. DepartmentsIndustrial/Productive Operative posts
1996 2005 Percentagedecrease in 2005 over 1996
Remarks
(in lakhs)
Railways
Defence
Posts/Telecom
S/S 17.1W/S 15.9
S/S 5.9W/S 5.1
S/S 7.5W/S 7.2
16.0 14.3
4.7 3.5
2.3 1.9
6.410.6
20.331.4
69.373.6
Decreases
Total Industrial/ Operative Staff.
S/ S 30.5W/S 28.2
23.0 19.7
24.6 43.1
B. Home Affairs-PolicePara-Military Forces
S/S 5.7 W/S 5.4
7.5 6.0
31.6 25.9 Increase
C. OTHER DEPTTS. ADMINISTRATIVE
S/S 6.0W/S 5.4
5.1 4.4
15.0 18.5
Decrease
D. Grand TotalS/S 42.2W/S 38.9
35.6 30.9
15.6 20.6 Decrease
S/S : Sanctioned strength: W/S : working strength.
2.2 The administrative staff including the professional, technical, scientific, executive
and clerical categories remained at 15%, both in 1996 and 2005. The para-military
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personnel had a leap from 13% to 21% in 2005, by virtue of which the production
process workers (the industrial workers in Railways and Defence and operational workers
in post and telecom) went down to 64% in 2005 from 72% in 1996. If the the para-
military personnel are treated as operational staff, the percentage of industrial workers in
the central Govt. continues unchanged at 85% in 2005 also. Thus, it could be seen that
large majority of the Central govt. employees are engaged in production work and only a
small segment is engaged in what may be called the Civil Service contrary to the general
image perpetuated by the media and other vested interest. The sharp decrease in the
civilian employment was brought about through various methodologies enunciated by the
Expenditure Reforms Commission, viz., Corporatisation (as in the case of the Telecom
Department), privatization of various governmental functions; closure; outsourcing,
contractorization etc.. Besides, a virtual ban on recruitment was imposed in 2001 through
an executive fiat by virtue of which the departments were compelled to abolish two-third
vacancies in order to get the sanction for filling up1/3rd vacancies.
2.3 While there had been a net reduction of more than 6 lakhs civilian posts during
the period between 1999-00 to 2004-05, i.e., after the Expenditure Reforms Commission
submitted its report, the sanctioned strength for Group-A registered an increase. The
posts lying vacant on account of the blanket ban imposed in 2001 works out to about 5
lakhs (471822 to be extract). [Table 2.3].
Table-2.3
Group YEARS 1999-2000 2004-05
Increase (+)Decrease (-)
1. As per Sanctioned Strength A. 87,883 88,319 (+) 436B.B (Non-Gazetted)
1,26,854 73,375 90,119 1,05,904 2,16,973 1,79,279
(-) 53,479 (+) 15,785 37,694
C. 26,53,291 23,17,238 (-) 3,36,053D. 11,90,123 9,60,665 (-) 2,29,458Unclassified. 23,761 14,330 (-) 9,431
TOTAL 41,72,031 35,59,831 (-) 6,12,200
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2. Incumbants –in-Position A. 78,250 74,954 (-) 3,304B.B (Non-Gazetted)
1,14,230 67,130 80,853 91,149
(-) 47,092 (+) 10,296
C. 24,34,244 19,94,449 (-) 4,39,795D. 11,25,732 8,47,950 (-) 2,77,782Unclassified. 21,999 12,369 (-) 9,630
TOTAL 138,55,316 30,88,009 7,67,307 2.4 The tables 2.3 indicate the reflection of various downsizing measures undertaken
by the government group-wise during the period between 1999-00 to 2004-05. There had
been no reduction in the sanctioned strength of Group A posts at all. where as the Group-
B & C, the reduction had been of the order of 13% and in the case of Group-D at 20%
and in the Unclassified category as high as 40%. Table 2.4 to 2.9 indicate the reduction in
the sanctioned strength as also men in position over the period between 1995-96 to 2004-
05 .
Table-2.4Statement showing sanctioned strength, men in position, vacancies and percentage
of vacancies to the sanctioned strength in Group A.Year Sanctioned .Strength Men in position vacancies percentage
1995-96 89262 76891 12371 13.861996-97 90841 77802 13021 14.331997-98 89992 76647 13345 14.831998-99 90029 76734 13295 14.771999-00 87883 78258 9625 10.952000-01 80285 71739 8546 10.652001-02 82184 71649 10535 12.822002-03 82692 70956 11736 14.192003-04 84004 72071 11933 14.212004-05 88319 74954 13365 15.13
Post abolished in 10 years = 89262 -88319= 943 = 1.05%Reduction in men position = 76891 – 74954 = 1937.
Table-2.5
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Statement showing sanctioned strength, men in position, vacancies and percentage of vacancies to the sanctioned strength in Group-B.
Year Sanctioned Strength
Men in Position Vacancies Percentage of vacancies
1995-96 95652 86694 8958 9.771996-97 96766 87673 9093 9.401997-98 103823 92227 11596 11.171998-99 100927 89736 11191 11.091999-00 126854 114230 12624 9.952000-01 73091 65602 7489 10.252001-02 73266 66564 6702 9.152002-03 74294 67341 6953 9.362003-04 76765 70157 6608 8.612004-05 73375 67138 6237 8.5
Post abolished in 10 years = 95652-73375=22277 = 23.28% Reduction in Men in position 86694 – 67138 = 19556
Table-2.6Statement showing sanctioned strength, men in position, vacancies and percentage of
vacancies to the sanctioned strength in Group-B (Non-Gazetted).
Year Sanctioned Strength
Men in Position Vacancies Percentage of vacancies
1995-96 93166 87203 7963 8.551996-97 96501 87975 8526 8.841997-98 91655 82888 8767 9.571998-99 92388 83535 8853 9.581999-00 90119 80853 9266 10.282000-01 90467 83401 7066 7.812001-02 100413 89927 10486 10.442002-03 97600 85806 11794 12.082003-04 102378 89499 12879 12.572004-05 105904 91149 14755 13.93
Increased in Sanctioned Strength: 93166 – 105904 = + 12738 = 13.7 Increase in Men in position = 91149 – 87203 = 3946.Note: This is due to change in classification. Some post in Group C were converted into Gr. B (Non-gazetted).
Table-2.7
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Statement showing sanctioned strength, man in position, vacancies and percentage of vacancies to the sanctioned strength in Group-C.
Year Sanctioned Strength
Men in Position Vacancies Percentage of vacancies
1995-96 2674836 2476146 198690 7.421996-97 2673046 2476927 196119 7.331997-98 2616388 2435341 211047 7.971998-99 2561324 2355118 206206 8.051999-00 2653291 2434244 219047 8.262000-01 2307367 2182705 124662 5.402001-02 2331602 2109346 222256 9.532002-03 2332070 2079861 252209 10.812003-04 2289665 2000617 289048 12.622004-05 2317238 1994449 322789 13.93
<Post abolished in 10 years = 2674836 – 2317238 =357598=13.36%<Reduction in Men in position= 2476146 – 1994449 =481697
Table-2.8
Statement showing sanctioned strength, man in position, vacancies and percentage of vacancies to the sanctioned strength in Group-D
Year Sanctioned Strength
Men in Position Vacancies Percentage of vacancies
1995-96 1237682 1142788 94894 7.661996-97 1233813 1139650 94163 7.631997-98 1233232 1134702 98530 7.991998-99 1193824 1098080 95744 8.021999-00 1190123 1125732 64391 5.412000-01 1036934 1005529 31405 3.032001-02 1027323 939530 87793 8.552002-03 1014950 916185 98765 9.732003-04 989044 879436 109608 11.082004-05 960665 847950 112715 11.73
Post abolished in 10 years =1237682 – 960665= 277017=22.38%Reduction in Man in position= 1142788 – 847950=294838
Table-2.9
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Statement showing sanctioned strength, man in position, vacancies and percentage of vacancies to the sanctioned strength in Unclassified.
Year Sanctioned Strength
Men in Position Vacancies Percentage of vacancies
1995-96 25334 23056 2278 9.381996-97 27227 24903 2324 8.531997-98 27615 25244 2401 8.691998-99 28557 26071 2486 8.711999-00 23761 21999 1762 7.422000-01 18338 17042 1296 7.072001-02 18218 12833 5385 29.562002-03 18577 16354 2223 11.972003-04 18577 16354 2223 11.972004-05 14330 12369 1961 13.68
Post abolished in 10 years = 25334 – 14330 = 11004=43.43%Reduction in Men in position= 23056 – 12369 = 10687
2.5 The drastic and arbitrary exercise of downsizing with a single minded objective of
manpower reduction without resort to any scientific analysis or study of the functional
needs of an organization brought about a highly distorted composition of civil service
today. Not only it overburdened the workers at lower levels beyond the limit of tolerance,
it also impacted adversely the efficacy and efficiency of all Govt. departments. This
naturally projected a very poor image of the governmental organization in general and its
Capacity to face the challenges and tasks in the changing situation in particular. The
Commission, in our opinion, must therefore, recommend to reverse this ill- advised
process of downsizing in the national interest.
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Chapter III
State of the Economy and
Financial Resources of the Government :
The terms of reference require the 6th CPC, inter-alia, to make recommendations
with reference to the economic conditions in the country, the need to observe fiscal
prudence in the management of the economy, the resources of the Central Govt. and the
demands thereon on account of economic and social development, defence, natural
security…….etc.
3.2 In our opinion, the term “resources” should be construed not merely the actual
resources the Govt. raises presently, but should also include the potential resources,
which the Govt. is capable of raising.
3.3 While presenting the Budget for the Year 2006-07, the Finance Minister in his
Budget speech presented a very rosy picture of the country stating that :
“The final report card on the first year of the UPA Government is out, and there are reasons to celebrate. According to the Central Statistical Organisation (CSO), the growth rate in 2004-05 was 7.5 percent, with the manufacturing sector growing at 8.1 per cent. More importantly, at current market prices, gross domestic saving increased to 29.1 percent of GDP. I have no doubt in my mind that these results were due to the political message conveyed by the National Common Minimum Programme (NCMP); the perceptive leadership of the Prime Minister, Dr. Manmohan Singh; the policy changes made by the Government; and the palpable confidence of the Indian people that their future is in safe hands.I am happy to report that the prospects for 2005-06 are just as good, if not better.”
3.4 The same opinion was also reflected in the general review of the macro-economic
overview presented in the Economic Survey of the Govt. for the year 2005-06 in the
following words :
“In a robust demonstration of its nascent strengths, the Indian economy, after growing at 8.5 per cent and 7.5 per cent in the two previous years, is projected to
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grow at 8.1 per cent in the current year 2005-06. Growth of Gross Domestic Product (GDP) at constant prices in excess of 8.0 per cent has been achieved by the economy in only five years of recorded history, and two out of these five are in the last three years……Some significant dimensions of the dynamic growth in recent years are : a new industrial resurgence; a pick up in investment; modest inflation in spite of spiraling global crude prices; rapid growth in exports and imports with a widening of the current account deficit; laying of some institutional foundations for faster development of physical infrastructure; progress in fiscal consolidation…….”
3.5 The same view got echoed in Para 1 of the write up captioned “Towards Faster
and More Inclusive Growth – An Approach to the Eleventh five year plan” published by
the Planning Commission in November 2006; which reads as follows :
“On the eve of the 11th Plan our economy is in a much stronger position than it was a few years ago. After slowing down to an average growth rate of about 5.5% in the 9th Plan Period (1997-98 to 2001-02), it has accelerated significantly in recent years. The average growth rate in the last four years of 10th Plan period (2003-04 to 2006-07) is likely to be a little over 8%, making the growth rate for the entire 10th Plan period 7.2%. This is below the 10th Plan target of 8%, but it is the highest growth rate achieved in any plan period.”
3.6 The Govt. has no doubt projected a very healthy image of the economy; a steady
growth rate of the economy @8.5% and 7.5% in previous years, poised to grow @ 8.1%
in the current year 2005-06; the growth of GDP at 8% rapid growth in exports, progress
in fiscal consolidation etc..
3.7 The following economic scenario was projected in the economic review 2005-06
presented to Parliament in Feb. 2006 :
(i) Foreign currency assets were increased from 51049 Million US $ in 2001-02 to 135571 Million US $ in 2004-05.
(ii) Exports have increased by a whopping 84% in dollar terms between 2001-02 to 2004-05(43827 Billion $ to 80540 Billion $).
(iii) Imports also got increased from 51413 B.$ to 109173 B$ during the Said period by 112%.
(iv) GDP at factor cost (at constant prices) in 2000-01 was at 1978055 (Year in 2001-02 stood at 2393671 crores in 2004-05.
(v) The industrial production rose from 167.0 in 2001-02 to 204.8 in 2004-05(vi) The revenue receipts which was Rs.110.130 crores in 1995-96 became
Rs.351,200 Cr. in 2005-06 registering an increase of 219%
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(vii) The direct taxes GDP ratio increased from 2.8% in 1995-96 to 5.0% in 2005-06 inspite of the fact that there had been a net decline in indirect taxes for the same period.
3.8 Reform of the personal income taxation was initiated in 1991-92 with the
maximum marginal rate of Income Tax reduced to 30% simultaneously abolishing the
wealth tax on all productive (financial) assets. Corporate tax accounted for 63% of direct
tax collection which is the trend in the developing countries and contrary to the situation
in developed countries. The direct tax collection in 2004-05 was Rs.131,918 and the
indirect taxes was at Rs.170398 crores.
3.9 The 5th Central Pay Commission made a general survey of the country`s economic
situation in the initial years of the reform era, some of their observations are worth
noting. In Para34.6 and 34.9, 34.15 and 35.14 the Commission observed that --
34.6: “We observe that India recorded one of the fastest recoveries from a macro-economic and balance of payments crisis. The growth achieved is spectacular even by international standards. A look at the rate of growth of Gross Domestic Product at factor cost and constant prices shows a jump from 0.8% in 1991-92 to 7% in 1995-96 (See Annexe 34.1). As against the earlier years when increases of this magnitude were largely explained by high rates of growth in agriculture, the improvement since 1994-95 is being attributed to the remarkable development of industry.”
34.9:”The economic reforms also led to a marked and favourable turnaround in the performance of the external sector since the crisis of 1991. The key indicators regarding the country`s position are summarized at Annexe 34.2. We observe the following trends:
(i) A strong and sustained recovery in export is observed with the rate of growth of exports in dollar terms moving up dramatically from 1.1% in 1991-92 to 20.8% in 1995-96.(ii) The ratio of exports to imports has moved within the rage of 85 to 90% in recent years, compared to a mere 60% in the later half of the 80s.(iii)There has been a substantial decline in the current account deficit as a proportion of GDP from over 3% in 1990-91 to more manageable levels in recent years.”
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34.15: “The sum and substance of the preceding analysis is that we no longer stand on the brink of a macro-economic disaster as we did in 1991. Our industrial growth is buoyant and so is GDP. We have made some dent in the problems of poverty and unemployment. Inflation is largely under control. Exports are doing very well and our foreign currency reserves are comfortable. No doubt, there are areas where we should do better, as in the field of agriculture, social services and infrastructural development.
35.14 “It is true that the Government is facing a difficult budgetary situation. There is need to prune the fiscal deficit as also to keep the rate of inflation at a reasonable level. At the same time, lack of resources cannot be cited as an unalterable reason by denying the employees their due. Government itself is partly to blame by its act of lifting the lid off private sector emoluments. It has also not shown circumspection while approving wage revisions in the Public Sector probably due to pressure of employees` unions. In the case of certain high-wage islands like airline pilots, Government has gone berserk. With this unenviable record, it can hardly preach abstinence and forbearance to its employees.”
3.10 We have in the preceding Paras made a sincere endeavour to underline the reality
of the economic situation based on the facts and figures contained in various Govt.
documents. It is discernible that the neo-liberal policies has improved the position of the
rich, giving way to Consumerism, speculative dealings in Shares and Securities and in the
real estate. On the other hand, it has also led to rise in unemployment, lack of job
security, planned phasing out of public distribution system, and privatization of social
infrastructural facilities; spiraling prices of essential commodities, shedding
Governmental functions in the name of downsizing, outsourcing etc. Caught in between,
the Central Govt. employees, especially in the lower strata of the service are in a
precarious condition, demanding the governmental intervention for their amelioration.
3.11 While allowing for certain distinctively negative features in the economic
scenario, we certainly feel that the Govt. can mobilize sufficient resources to meet the
reasonable aspirations of the Govt. employees even without compromising any of the
outgoing or planned development projects. There is no denying the fact that the social
welfare activities for the downtrodden people of the country should take a front seat so
far as the Govt.`s priorities are concerned, but the Govt. employees should not be chosen
exclusively to bear the brunt.
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3.12 From the table appended below it could be seen that the revenue receipts of the
Govt. had been progressively increasing over the year, whereas the percentage of wages
and salaries both with reference to rev.-receipts and rev. expenditure had been declining.
Table IV.1
Revenue Budget Wages Bill as % of
Years Total Rev.Receipts
Total Rev.Expenditure
Wages &Salary Bill
AmountValue
Wage Bill as % of Revenue
Receipt
Wage Bill as % of RevenueExpenditure
1991-92 66,047 82,308 10,744 16.3 13.11992-93 74,128 92,702 13,397 18.1 14.51993-94 75,453 108169 14585 19.3 13.51994-95 91,083 122112 15721 17.3 12.91995-96 110130 139860 18023 16.4 12.91996-97 126279 158988 20396 15.6 12.81997-98 133901 180350 27430 20.5 15.21998-99 149510 217419 31560 21.1 14.51999-00 181513 249109 33978 18.7 13.62000-01 192624 277858 33986 17.6 12.22001-02 201449 301611 31407 15.6 10.42002-03 231748 339627 33317 14.4 9.82003-04 263878 362140 34554 13.1 9.52004-05 306013 384351 38653 12.6 10.1
2005-06RE 348474 440295 40047 11.5 9.12006-07RE 403465 488192 41774 10.4 8.5
3.13 As per the Statistics published in the Indian Public Finance, Statistics, the pay and
allowances as percentage to GDP in 1996-97 was 1.5% whereas it is presently at 1.1% of
the GDP.
3.14 Table [IV.2] indicates the Wage Bill of the Central Govt. employees on crucial
occasions, i.e., 1960-61, 1975-76, 1986-87 and 1997-98 and 2006-07, i.e., the years in
which the 2nd, 3rd, 4th and 5th Pay Commission’s recommendations were implemented.
Table-IV.2
Year Revenue Budget Wage Bill Wage Bill as % ofTotal Revenue
receiptsTotal Revenue Expenditure.
Revenue Receipts
Revenue expenditure.
1960-61 1,297 1,246 417 31.3 33.51975-76 8,075 7,189 1,887 22.0 22.8
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1986-87 33,083 40,860 6,100 18.4 14.91997-98 1,33,901 1,80,350 27,430 20.5 15.22006-07 (BudgetEstimate)
4,03,465 4,88,192 41,770 10.4 08.5
3.15 The following observation in the World Bank Report No. 50 (July 24-2002)
Comparative Public Administration Reports is worth reproducing:
“In order to deliver quality public services, governments will need to spend money on goods and services as well as wages and salaries. As a rule of thumb, when this ratio rises over 25 percent, Govt. risks reducing their effectiveness by squeezing non-wage expenditure.
3.16 The Commission may, inter-alia, note that in recent times in the process of cut
throat competition, personnel at various levels, have started migrating from Govt. service
accepting fabulous monetary benefit and payments offered by the private entrepreneurs.
3.17 The fact that potentially mobilisable resource exist is attested by many eminent
economists and Study groups. As per the study conducted by the National Institute of
Public Finance and Policy the annual black income generated in the economy is of the
order of 18 to 21% of the GDP, i.e., about 5,65,192 Crores (2004-05Q.E.). As per the
receipt Budget figures for the Year 2006-07 the tax revenue raised but not realized at the
end of the reporting year 2004-05 amounts to Rs.111,108 Crores: The Gross NPA
constituting unreturned loans and advances taken mainly by the big business houses from
the scheduled commercial Banks stood at an alarming figure of Rs.58299 crores. The
Govt. should target this black economy to mobilize the additional resources. Besides,we
may also make the following further suggestion to augment the resources of the Govt.
rather than resorting to the easy option depressing the wages of the workers and
depriving them of a reasonable standard of living:
(a) to raise the number of direct tax payers(b) to ensure that at least 3% of the population pays wealth tax(c) to impose increased taxes on luxurious items(d) to structure Corporate Tax on Gross Profit instead of Income(e) to curtail the plethora of expenses/deductions/in this Corporate tax-
system(f) Curbing ostentatious public expenses.
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3.18 The Govt. had been claiming success for its New Economic Policy. Therefore,
there cannot be any reason for denying the legitimate demands of the Central
Government employees.
3.19 Before we conclude, we would like to reiterate that the Govt.`s resources as of
date do permit to raise the minimum wage of the Central Government employees to
Rs.10,000 on par with the Public Sector Undertaking, as it will not result in crossing the
desirable spending threshold limit of 25% of the resources needed to deliver quality
public services.
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Chapter-IV
Principles of determination of pay
The 6th Central Pay Commission has been asked to examine the principles that
should govern the structure of pay and allowances and other facilities and benefits,
whether in cash or in kind, to the six categories of employees enumerated in para 2(A) of
the notification dated 5.10.2006. In this chapter, we shall deal with the broad principles
that should govern the determination of minimum wage and the pay structure of Central
Government employees. Before we dwell upon the various principles enunciated by the
expert committees and Commissions and its applicability in the present juncture we
would like Pay Commission to consider the following factors.
(a) The Central Government employees were in terms of emoluments better
placed than others in the fiftees. This position started to slide down from
1958-59 onwards. Presently they are far behind most of the public sectors
workers,. One important reason for the emergence of such a phenomenon was
the frequency in which the wage settlement was brought about in the Public
Sector undertakings through bilateral negotiations. Sans the benefit of
collective bargaining, the wage revision in the case of Central Govt.
employees had been taking place after every 10/15 years through the
instrument of Pay Commission. The ever widening gap even at the minimum
wage level has set in demoralization and a feeling of despair among the
Central Govt. employees.
(b) The elimination of such a sense of grievance, which is real, should be
considered to be the important task before the Pay Commission. The wage
structure should be based on a sound principle; it should meet the test of
reason and relevance engendering a feeling of “fairness” amongst the
employees.
(c) The norms laid down by the 15th Indian Labour Conference (Tripartite) for
fixing the need based minimum wage is relevant even today though it could
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not have visualized the basic requirements of the modern living conditions.
The minimum wage, the 6th CPC may determine, should not in any case be
less than the minimum wage computed as per the norms laid down by the 15 th
ILC.
(d) The most important factor in the determination of wages of civil servants all
over the world is the “fair comparison with outside rates.” Due to the non-
availability and unreliability of the data regarding wages in the private sector,
such comparison in the Indian context, in all fairness, should be restricted to
the wages in the public sector, more specifically the Navaratna companies for
the Public Sector is considered as part of the Central Government in terms of
Art. 14 and 16 of the Constitution. Besides, it must be noted that the wage
agreement in these undertakings is governed by the directives issued from
time to time by the Department of Public undertakings under the Ministry of
Industries.
Minimum wage and Pay Structure
4.2 The two important methodologies that could be adopted for the determination of
the minimum wage in the case of Govt. employees are:
(i) Fair comparison of the rates obtaining in the Public Sector undertaking in
respect of an unskilled worker.
(ii) Adopting the 15th ILC norms.
4.3 The minimum wage so determined, shall be the premise on which pay scales
could be constructed taking into the existing or desirable relativities.
4.4 It would thus be pertinent to indicate briefly the various conceptual formulations
made by the successive Pay Commissions in the matter of minimum wage determination.
The Second Pay Commission considered the recommendation of the 15 th ILC
regarding the need based minimum wage. Their observation in this regard is as
under:-
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“It is for the first time in this country – and for the matter of that, in any other country of which we have information- that the need which a minimum wage should satisfy, have been defined in precise, quantitative terms”………………… “We have found on examination, that while the standard set in the particular balance diet formula (adopted by the 15th ILC) may be feasible in respect of cereals and to a large extent in respect of pulses, they are clearly impracticable in the case of other food stuffs, fruits, milk, meat, fish and eggs”…………..”We, however, thought that it would be of some aid in our deliberations if a diet capable of providing the requisite calories and other essential nutrients was worked out within the limits of the country’s present output of foodstuff. A diet suitable for an adult man engaged in moderate activity was accordingly worked out and sent to Dr. Patwardan for his opinion. We have considered whether a minimum wage of the size implied in the 15th Labour conference recommendation is feasible economically and financially and we have reached the conclusion that it is not.”
4.5 The 3rd Pay Commission estimated the need based minimum remuneration
according to their own concept adopting the vegetarian diet recommended by the Indian
Council of Medical Research and quantifying the same on monetary terms by applying
the average of the rates of the articles obtaining in the cities of Mumbai, Chennai,
Kolkata and Delhi. They thus worked out the same at Rs. 196, co-related to the cost of
living index at 200 [base 1960=100]. While adopting the minimum wage so quantified,
deviating significantly from the 15th ILC norms, they also pointed out emphatically that :-
“We see no reason why the Govt.;employees should not in the fullness of time, be entitled to the need based minimum wage according to the norms laid down by the 15th ILC. ………..
4.6 The 4th Pay Commission examined in detail
the implication flowing from the amendment to the preamble to
our Constitution whereby the words “Socialist and Secular” were
prefixed to the word “republic”;
directive principles of State policy as enshrined in art. 39;
living wage in article 43; etc.
and concluded that the directive given in Article 43 for securing a
living wage was an endeavour the State must make and the
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Commission be inspired whenever and wherever the question of
emoluments for the workers arises for consideration.
4.7 Observing thus, the 4th Pay Commission, without resort to any detailed
computation, rather arbitrarily, reached the conclusion that the salary at the lowest level
should be fixed at Rs. 750 per month at index average of 608 (1960=100)
4.8 The 5th Central Pay Commission also referred to Article 43 of the Constitution
(Living Wage), discussed the 15th ILC norms, the recommendations of the ILO 1968, the
minimum wage advisory board`s recommendations; the ILO 1992 norms etc. and
formulated a combination of the following approaches in the determination of the
minimum wage;
(i) Need based approach(ii) Capacity to pay approach(iii) Relative parity approach(iv) Job evaluation approach(v) Productivity approach (vi) Living wage approach
4.9 In fine, they adopted a modified version of the Constant Relative Income
Criterion [by applying a compensation factor of 30.9 per cent representing the increase in
the per capita net national product during the period between 1986 and 1995] to work out
the minimum wage at Rs.2440/- at the Cost of Living index at 315 points: Base
1982=100.
4.10 As there had been a factual error in the computation of the percentage increase of
NNP between 1986 and 1995, the minimum wage had to be raised later to Rs. 2550
through bilateral negotiations.
4.11 It could be seen from the above that except discussing various rationale and
approaches, none of these Commissions could stick to any consistent and sound principle
in the determination of minimum wage. The criterion adopted by the 5 th CPC i.e. linking
the wages to the percentage increase of the NNP over a pre-determined period is
fallacious in as much as the wages of the Central Govt. employees are sought to be co-
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related to a factor which has no relevance to their living conditions or on the evolution of
which they have absolutely no control at all. This is amply borne out of the following
observation made by the Second Central Pay Commission in this regard.
“We have already dealt with the general question whether wages and salaries of Government Servants can be linked with National Income figures in any direct or precise manner, and have reached the conclusion that they cannot be so linked. We have also been cautioned about the imperfections of the estimates of National Income; and advised against making use of them except in a broad, dimensional term”.
4.12 It is therefore, our considered opinion, that the basic norm propounded by the 15 th
ILC is the most scientific and sound rationale in determining the minimum wage as of
date though it suffers immensely of deficiencies related to present day living conditions.
In the context of the above analysis, we strongly advocate that the minimum wage
determined in the case of Central Government employees should not in any case be less
than the minimum computed on the basis of the 15th ILC norms. The difficulties faced by
the previous Pay Commissions particularly the second and third in computing the
minimum wage on the basis of the 15th ILC norms is no longer being encountered by the
6th Pay Commission as the fundamental of our economy is considered to be very strong
by the Govt. itself. The cardinal principle of wage determination in the case of Civil
servants being “the fair comparison with outside rates”, we suggest that the Commission
determine the minimum wage on the basis of a fair comparison of the wages obtaining in
the Public Sector undertakings, especially in the Navaratna companies.
4.13 Having stated the principles, we now deal with the computation of Minimum
wage at the entry level of the unskilled worker. The wages of the most of the PSUs are
due for revision as on 1st January 2007. The average of the minimum wage in the
Navaratna Companies among the PSUs without taking into account the proposed revision
hovers around Rs.9450/- including fringe benefits and ex-gratia payments. Acute
financial constraints deterred the 2nd & 3rd CPC in recommending the minimum wage
based on the15th ILC norms. With the turnaround of the economy, the phenomenal
growth in the tax revenue and other receipts, (which is detailed in the succeeding
Chapters), the 6th CPC do not encounter the problems and difficulties faced by the earlier
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Commissions. The Public Sector workers have now demanded the Minimum wage at Rs.
11,000/- as on Ist January, 2007.
4.14In the accompanying Annexure (A) we have computed the minimum wage on the
basis of the 15th ILC norms. As per the said computation, the minimum wage on the basis
of the average of the prices of the articles obtaining in the four Metro Cities i.e. Delhi,
Chennai, Mumbai and Kolkata works out to Rs. 9730/-. Even according to the formula
enumerated by the 5th CPC, i.e., percentage increase of the per capita NNP, over the years
between 1995-96 and 2004-05 at factor Cost at Current prices, the minimum wage
workout to Rs.10,239/-. In Annexure-C to this Memorandum, we have given the details
of the total emoluments of Central Govt. employees in various Cadres both at the
minimum and maximum of the respective Scales of Pay, which is indicative of the
widening gap in emoluments at all levels between the Govt. employees and those
employed in the Public Sector Undertakings. We, therefore, suggest that the minimum
wage in the case of the Central Government employees related to the All India Average
Cost of Living Index of 536 as on 1st January, 2006 (Base: 1982= 100) may be fixed at
Rs. 10,000/-.
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Fixation of Minimum wage as per the norms of 15 ILC norms
Items Per day PCU(In grams)
Per month 3CU(In kg)
Price per kg.(In Rs)
Total cost(In Rs)
Rice/wheat 475 42.75 22.00 941
Dal(Toor/Urid/moong)
80 7.2 65.00 468
Raw Veg 100 9.00 28.00 252Greenleaf Veg 125 11.25 24.00 370Other Veg 75 6.75 26.00 176Fruits 120 10.80 50.00 540Milk 200 Ml 18 Ltr 24.00 432Sugar and Jageery 56 5.00 24.00 120Edible Oil 40 3.6 90.00 324Fish 2.5 180.00 450Meat 5.00 180.00 900Egg 90 (no) 2.50 225Detergents,Cosmetics,ect 300 P/m 300Clothing 5.5 Mtr 80/Mtr 440Total 5838Misc @ 20%* 1167.60Total 7005.60Addl. Exp @ 25%** 1751.40total 8757.00Housing @ 10%*** 973.00Grand Total 9730.00
Notes PCU = Per day Consumption Unit*20% Miscellaneous charges towards fuel, electricity, water etc.**Additional Expense at the rate of 25% includes Expenditure towards education, marriage etc. of children, medical treatment, housing, recreation, festivals etc. as per the Supreme Court Decision in 1991.***Housing at the rate of 1/10 of total salary as per Rule 2A of the Income tax Rules read with section 10(13A) of the I.T. Act.
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Total emoluments (Pay + DA) in respect of some selected posts as on 01.01.2006 :
Sl.No.
Designation At Minimum At Maximumof the Pay Scale
1 Peon 4743 59522 Postmen/Police Constable/Lower
Division Clerk5673 8537
3 Upper Division Clerk 7440 111604 Junior Research/Statistical Asstt. 9300 148805 Asstt. of Central Secretariat Sr.
Auditor/Accountant10230 16740
6 Asst. Accounts OfficerResearch Asstt. …………..Section Officer (Central Sectt.)
12090 19530
7 Asstt. Director/Research Officer 14880 251108 Under Secretary/Sr. Research Officer 18600 282729 Dy. Secretary/Jt. Director 22320 3069010 Director 26598 3403811 Jt. Secretary 34224 4166412 Addl. Secretary 41,664 4557013 Secretary 4836014 Cabinet Secretary 55800
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Chapter V.
Proposed Pay Structure
Having regard to the minimum at the entry level of an unskilled worker,
computed as above, we suggest the pay scales for Central Govt. employees belonging to
Group C and D as per Annexure-B: While computing the pay scales, we have reworked
the existing scales of pay to reflect the correction made in the minimum wage i.e.
revising it from 2440 to 2550 in September, 1997 through bilateral negotiations. The
conversion factor will thus be changed from 3.25 recommended by the 5 th CPC to 3.4
upto and including the Scale of Pay S.6 i.e., 3200-4900/-. In view of the higher minimum
recruitment qualification prescribed in the case of personnel occupying Pay scales S.7
onwards in the administrative professional and scientific segments and the highly skilled
nature of assigned jobs in the Industrial and operational sections, it is necessary that
they are adequately compensated for the skills they possess, for otherwise the Govt. may
not be able to recruit better equipped employees and retain them in service due to the
better pay package offered by the Private Sector. Without disturbing the relativities
violently, we have tried to address this need by applying the conversion factor of 3.75
from this pay scale of S.7 onwards, which brings about the minimum of S.7 Scale of Pay
to Rs.4500/- for the existing minimum of Rs.4000/-
5.2 In tune with our suggestions made elsewhere in this memorandum, we have
proposed open ended running scales of pay with only the minimum, as is obtaining in
many Public Sector Undertakings. This would do away with the problem of stagnation to
a great extent. We may in this connection draw the attention of the Commission to the
alternate method adopted by some of the Public Sector undertaking and State
Government to address to the problems of stagnation by creating a master scale of pay.
We have proposed the annual increment to be at the rate of 5% of the Basic pay on par
with the rates obtaining in the Banking industry.
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P.S.No.
Pay =4th CPC 5th CPCScale
5th CPCmodified
Proposed for 6th
CPCRounded Incrmt.
5%S.1 750 2550 2550 10000.00 10000 500S.2 775 2610 2635 10329.00 10500 525S.4 825 2750 2850 10995.00 11000 550S.5 950 3050 3230 12661.00 13000 650S.6 975 3200 3315 12995.00 13500 675
S.7 1200 4000 4500 17640.00 18000 900S.8 1350 4500 5063 19847.00 20000 1000S.9 1500 5000 5625 22050.00 23000 1150S.10 1640 5500 6150 24108.00 25000 1250S.11 2000 6500 7500 29400.00 30000 1500S.13 2375 7450 8906 34911.00 35000 1750S.14 2500 7500 9375 36750.00 37000 1850
S.32 8000 26000 30000 117600.00 120000S.33 9000 30000 33750 132500.00 135000
Ratio of Minimum and Maximum Salary shall be 1:13.5Note:
1. There will be a slight modification in the pay scales of skilled workers.2. Scale No. S-3 with a minimum of Rs.800 exist in some departments. They
willl have to be given the replacement scale of S-4, the minimum of which is Rs.825/-.
3. For certain reasons, the pay scales of some categories in Gr. C and Gr. B had been higher than the entry scale of pay in Group A. The said status was disturbed by the 5th CPC. To set right and bring back the status quo amte. The concerned organizations will take up the issue before the Pay Commission.
4. The Fast track committee in certain organizations, in order to remove the anomaly has to resort to creation of intermediary scale of pay. Since that being outside the recognized scales of pay, such pay scales should be assigned the replacement scale of the higher scale of pay.
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Chapter VI
Allowances
Part A
1.Dearness Allowance
6.1.1 Dearness Allowance presently being paid to the Central Government employees is
based on the recommendations of the 5th CPC, salient aspects of which inter alia read as
follows:
(i) “We recommend that inflation neutralization be made uniform @ 100% at all levels.”
(ii) “We, therefore, recommend that AICPI(IW) may be the index that may be used for calculating Dearness Allowance for Govrnment employees. The AICPI(IW) series with base 1982 may however be used henceforth for the purposes of calculating Dearness Allowance, as against the existing practice of using AICPI(IW) series with 1960 as the base. This is not likely to cause any difference to the calculations, as the 1960 series on being discontinued in 1988, is being generated from the 1982 series by using a conversion factor of 4.93.”
(iii) “We propose that the existing practice of using the 12-monthly average of AICPI(IW) for calculating Dearness Allowance may continue.”
(iv) “We recommend that DA should be converted into Dearness Pay each time the CPI increases by 50% over the base index used by the last Pay Commission. Such DA should be termed as Dearness Pay and be counted for all practical purposes, including retirement benefits.”
(v) “Regarding the exemption of Dearness Allowance from tax, we propose that in line with our general recommendation on giving all allowances net of income tax, Dearness Allowance (including Dearness Pay referred to in the last paragraph) should be paid net of tax.”
6.1.2 The government accepted the first three of the above recommendations
immediately and subsequently conceded the fourth w.e.f 1.4.2004 just on the eve of the
last Parliamentary elections, in the face of vociferous demands of the Staff Side of the
National Council, JCM. However, the last recommendation as regards payment of
allowances net of tax has not so far been accepted by the government as it has not
considered the same in respect any other allowances similarly recommended by the
Commission, except in the case of Transport Allowance. As a result, the so-called 100%
neutralization granted by the Commission has, in effect, been reduced to 70-80%
depending on the quantum of gross annual salary and allowances of the employees. At
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present, a large segment of employees even at the lower-middle rung has come under the
purview of taxation.
6.1.3 Moreover, though the neutralisation envisaged under the recommendations of the
5th CPC is cent percent, but in reality not the case. At any point of neutralisation, actual
Consumer Price Index is much higher than the level at which DA is sanctioned. It is due
to the fact that DA is calculated on the basis of 12 monthly average and the average is
always lower than the actual cost of living index.
6.1.4 The calculation of consumer price index, its basis and the basket of goods on
which it is based is itself questionable and it has become a matter of dispute. Since this is
not the forum of which it could be settled, we refrain from going into the details of that
aspect
6.1.5 However, in order to practically solve the issue indicated in paragraph 3 above
and to bring some satisfaction among the employees, we suggest that the existing formula
may continue with the following modifications:
(a) instead of revising the DA once in six months, it should be revised once in three months.(b) The Principle laid down by the 5th CPC as regards merger of 50% of DA with the Pay as DP be modified to 25% to remove distortions in the pay structures.
© The 6th CPC may also recommend that DA shall be paid net of taxes on the same line as recommended by the 5th CPC to make the concept of 100% neutralization somewhat meaningful.
2. House Rent Allowance
6.2.1 The present scheme of HRA available to the government employees is based on
the recommendations of the 5th CPC and the current rates of the same are as follows:
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Classification of cities and
towns on population basis
Classification Rates of HRA
50 lakhs and above A-1 30% of Basic Pay + DP
20-50 lakhs A 15% of Basic Pay + DP
10-20 lakhs B-1 15% of Basic Pay + DP
05-10 lakhs B-2 15% of Basic Pay + DP
50,000 to 5 lakhs C 7.5% of Basic Pay + DP
Below 50,000 Unclassified 5% of Basic Pay + DP
6.2.2 Although the 5th CPC recommend that HRA should be granted with reference to
the maximum of a time scale of pay, the government ultimately granted the same only
with reference to the existing Basic Pay of the employees. The Commission also
recommended that all those employees who reside in contiguous agglomeration around
cities/towns where government offices are located be granted HRA at the rates of cities
and towns where their workplace is located.
6.2.3 While making the recommendations the 5th CPC considered the criterion
prevailing at that time to be the only practical basis for classification of cities and towns.
Accordingly, it recommended six classifications of cities and towns as indicated in Para 1
above. Though the Commission outlined six classifications, they recommended the same
rate of HRA for the A, B-1 and B-2 class cities/towns and left one category unclassified.
Thus the actual classification was, in fact, reduced to four only. Since the variation
between the highest rate (30% in case of A-1 cities) and the lowest (5% in case of
unclassified) is of the order of 25%, which is quite high, it gave rise to lot of heartburning
and hardship among the employees posted in the C class and the unclassified
cities/towns. In case of transfer from the A-1 Metros to the A, B-1 and B-2 cities/towns
also, the employees who could not be provided with any government accommodation,
felt much hardship with their total pay packet getting reduced substantially. Hence, we
suggest that the disparity between the rates of HRA in different classes of cities/towns be
reduced and the number of classes be also reduced from the present level of six to only
three as follows to meet the ends of justice:
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(i) Population above 50 lakhs- ‘A’ class.(ii) Population between 20 lakh to 50 lakh- ‘B’ class.(iii) Population below 20 lakh- ‘C’ class.
“The third Pay Commission had inter-alia, made the following recommendations
on housing and house rent allowance :-
(i) Government should take houses on long lease and make residential accommodation available to its employees on payment of 10% of their pay.
(ii) Government should lay down appropriate rates of HRA for different cities and towns not on the criterion of population but on the basis of prevailing levels of rent. Alternatively, notional rents for different types of accommodation meant for employees in specified pay groups should be laid down for different cities and towns. The difference between the actual rents paid and 10 percent of the pay should be reimbursed provided the actual does not exceed the notional rent, where it does, the extent of reimbursement will be limited to the difference the notional rent and the 10 percent of the Pay.”The 4th Pay Commission while endorsing the above suggestion, observed that as time would be taken to implement the above scheme and went on suggest payment of HRA on an interim basis at the rates indicated in Para 1 above. [Para-5.2]
6.2.4 Inspite of a lapse of 2 decades, the Govt. made no serious effort to implement the
recommendation resulting in fixing HRA in an arbitrary manner. We suggest that the
commission should ask the Govt. to implement this proposal within a time frame so that
the issue could be settled once for all in a rational manner. It is not a difficult task to fix
the notional rent as, even today, the Govt. is fixing market rent for various types of
quarters and revise them periodically. The Market rent so fixed is meant to charge an
employee who becomes disentitled to Govt. accommodation. That rent is charged on the
principle that if the employee had taken a private house of similar type of
accommodation, he would have to pay that much of rent.” [ Para-5.3 ]
6.2.5 However, in view of the pressing need for the immediate revision in existing
HRA scheme, and till the govt. decides upon the above proposal, as an interim measure,
we propose that the rates of HRA be revised in the following manner on the basis of the
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classification proposed by us in Para-(3) above in order to reduce the disparity between
the rates obtaining at present as well as to take care of the rapid spurt in the cost of
housing in all parts of the country in general and the metros in particular, during the last
one decade:
(i) HRA for ‘A’ class cities- 40% of the revised Basic Pay(ii) HRA for ‘B’ class cities- 30% of the revised Basic Pay(iii) HRA for ‘C’ class cities- 20% of the revised Basic Pay
It is pertinent to mention here that the above suggestion quite conforms to the concept of
exemption granted to the Salaried tax-payers in respect of HRA drawn by them under
Section 10(13A) of the Income Tax Act read with Rule 2A of the Income Tax Rules
which allows upto 50% of Salary as exemption towards House Rent paid as HRA in
respect of Mumbai/Kolkata/Delhi/Chennai and upto 40% of Salary in the case of other
cities.
“At present the cities are classified for the purpose of HRA & CCA differently; that is to say that in case of HRA population of the city proper only is taken account, whereas for the purpose of Compensatory (City) Allowance (CCA) Classification is made on the basis of population within the urban agglomeration of the City/Town. This distinction is unjust and uncalled for. Hence it should be done away with.” [ Para-5.7 of Memorandum to 5th CPC]“There is at present a system of reappraisal of population between the period of two census. However, this has not worked satisfactorily as the appraisals are made almost at the fag end of the decade. The proposed appraisal should be completed within 5 years of the previous census.( and given effect from the date of completion of 5 years) This would enable several cities which are marginally below the prescribed level to be upgraded in time to higher classification for the purpose of HRA & CCA.” [Para-5.8 of the Memorandum to 5th CPC]
3. City Compensatory Allowance
6.3.1 As in the case of HRA, the 5th CPC recommended population criterion to continue
for the purpose of classification of cities for determination of the rate of City
Compensatory Allowance also. But as has been stated by us earlier, two different criteria
were recommended to be followed in the case of these two allowances, which is required
to be removed. The 5th CPC restricted the CCA only to the A-1, A, B-1 and B-2 cities and
recommended lump sum amounts in the following manner:
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(Amount in Rs.)
Basic Pay (Rs)
as per 4th CPC
A-1 A B-1 B-2
750-1000 90 65 45 25
1001-1500 125 95 65 35
1501-2000 200 150 100 65
2001 & above 300 240 180 120
6.3.2 The 5th CPC, however, did not provide any basis for arriving at the lump sum
figures recommended by them. On the contrary, they observed that they did not support
the demand for making CCA as a percentage of the basic pay because this amounts to
admitting a firm and causal relationship between CCA and income, while admitting at the
same time that CCA is paid as a correction factor for compensating the employees for the
‘relative costliness’ of cities. These observations sound paradoxical in as much as
‘relative costliness’ is also, in a sense, a form of ‘dearness’ and should be governed by
the same principles that govern Dearness Allowance. All the successive Pay
Commissions have admitted the principle that DA should have a one-to-one relation with
basic pay because dearness causes direct erosion in pay and as such any neutralization
which is to be given because of that erosion has to be related to the basic pay. As such,
DA is traditionally being granted as a percentage of Basic Pay. On the same analogy,
CCA should also be granted as a reasonable percentage of pay to neutralize the erosion of
pay due to costliness of cities.
6.3.3 The present classification on population basis is defective in as much as it does
not actually reflect the exact costliness of the city. In this connection, we would like to
mention that on the basis of a special study on comparative costliness was carried out in
respect of the 26 centres for which statistical data was available with the Labour Bureau
and Central Statistical Organisation. Consequent on the report of the Special Study. 14
more cities were upgraded to the level of B-2 class cities. The study had found that some
of these cities were as costly as cities classified as A-Class, though the Govt. decided to
grant the status of B-2 class only. If such a study is carried out periodically in respect of
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cities/towns, it would be rational. We, therefore, suggest that the Commission should
recommend to the Government to carry out such studies in respect of towns and cities for
whom the claim is made in JCM. The cities should then be classified as the studies reveal
and not arbitrarily classified to any lower class.
6.3.4 As we have already suggested new classification of cities for grant of HRA (in
Chapter on HRA), the same classification may be adopted for grant of CCA at the rates
of 50% of the rates proposed for HRA as indicated below on the ground that costliness of
getting of housing accommodation and the costliness of other essential articles of daily
living have a direct proportion to each other and the most conservative proportion can be
2:1 respectively :
A- City - 20% of Basic Pay B-City - 15% of Basic PayC-City - 10% of Basic Pay
Part B.
Compensatory allowances:
1.Special Compensatory allowance:
6B.1.1 The present practice of following the State Governments with regard to
classification for Remote Area, Difficult Area etc. has to be discontinued as because
some states have merged this allowance with pay or have changed its nomenclature
resulting in stopping of this allowance for central Govt. employees. The V CPC, due to
paucity of time, suggested that the Govt., should appoint a Committee of Officers
(Experts) to prepare a detailed scheme for evolution of a composite Index of Difficulty/
Hardness of an area on the lines of a composite index for backwardness used for
allocation of funds among states. Though almost a decade is over, the Govt. have not
taken any action to constitute a Committee for this purpose.
6B.1.2 We therefore, request the Present Commission to prepare a detailed scheme for
evolution of a composite index of Difficulty/Hardness etc of an area instead of leaving it
to the Govt. so that dependence on State Governments is ended and the amount to be paid
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is also determined on the basis of the degree of difficulties/hardships etc. faced by the
employees in a particular area.
6B.1.3 Alternatively this job may be entrusted to a joint Committee of National Council
of JCM. Until such time that the above scheme is evolved, we urge upon the VI CPC to
recommend the special compensatory allowance @ 30% of Pay +NPA for part A; 25% at
Part B; 15% at Part C and 10% at Part D categories which may continue to be classified
by the representative Govt.
6B.1.4 However, wherever it is noticed that the State Governments had merged this
allowance with pay or had changed its nomenclature, the Central Government may be
asked to continue to pay Special Compensatory allowance admissible at the category of
the station earlier adopted by the State Govt.
6B1.5 There are certain stations which are situated in a trough caused by hills encircling such stations at an altitude which is lower than the altitude of hills surrounding these stations etc. Mussoree. The altitude of hills surrounding such stations may be adopted for classification of such stations.
6B.1.6 There are stations where hill compensatory allowance was admissible prior to V
CPC. Such stations may be classified as Part D for the purposes of grant of Special
Compensatory allowance.
2. Project Allowances .
6B.2.1 This allowance is being paid at slab rates fixed by various Pay Commissions.
Our considered view is that this allowance should be related to pay and expressed in
terms of Percentage of the Pay which would do away with arbitrariness in revising these
allowances and no employee will feel that he is being paid the rate at which his
subordinates are being paid. We request the VI CPC to recommend 7.5% of pay as
project allowance.
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3. Training allowance
6B.3.1 This allowance was introduced in 1986 at the rate of 30% of Pay +DA. On the
plea of resource crunch it was reduced to 30% of basic pay and later @ 15% of basic pay
in the year 1992-93 (i.e. on 9.7.1992). The V CPC recommended continuance of this
allowance @ 15% of basic Pay.
6B.3.2 As the plea of resource crunch is no longer valid and if the object is to attract the
best available trainers, the rate of this allowance will have to be restored to 30% of
emoluments which was sanctioned in 1986 when it was introduced.
6B.3.3 We request the Commission to recommend 30% of emoluments as training
allowance.
4.Risk Allowance.
6B.4.1 The V Central Pay Commission had recommended that this allowance should be
paid only to employees who are exposed to continuous risk i.e. where the risk is inherent
and continuous in the occupation itself with adverse effects on health. Various Ministries
were asked to set up a committee to review the categories of employees in respect of risk
allowance to those who are exposed to continuous risk. This has not been done by many
ministries in spite of the fact that Govt. had issued instructions for such a review. Since
many concerned Ministries had not undertaken such a review the risk allowance
recommended by V CPC has also not been paid to the concerned employees. e.g. Survey
of India employees under Department of Science and Technology etc. This should be
done now and risk allowance granted to them with effect from 1.8.1997. It was observed
that in Botanical Survey of India, Kolkata, there were many cases of death in harness due
to snake bite in Botanical Gardens and many other employees were medically invalidated
and retired prematurely due to handling of formaldilide and other chemicals. As a
matter offact there used to be a Doctor engaged in Botanical Gardens in the past.
However, that post was also abolished after which death in harness and Medical
invalidation cases have registered an unusual increase.
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6B.4.2 It is, therefore, necessary that all concerned Ministries should be asked to
identify the category of employees who are exposed to continuous risk so that they could
be granted risk allowance. We suggest that the rates of risk allowance as recommended
by V CPC may be tripled. To prescribe different rates for non gazetted employees
handling Nitroglycerine preparation is also quite irrational. As a matter of fact it is the
nongazetted employees who have to be engaged intensively in such preparations and
Gazetted Officers are only required to supervise. We therefore, urge upon the VI CPC to
grant the higher rate of risk allowance to non-gazetted employees as well.
6B.4.3 There are certain departments like Railways etc. where risk allowance was
admissible to certain peculiar categories. The Departmental organizations will submit
separate memorandum in this regard.
5. Night Duty Allowance.
6B.5.1 Though the V CPC recommended that the relaxation of the ceiling for Night
Duty allowance be restricted to only these categories then availing themselves of this
benefit, the Board of Arbitration has given a categorical award that the ceiling of Rs 2200
(with reference to IV CPC may be lifted(Excluding Railways).
6B.5.2 We therefore request this Commission to do away with ceiling of Pay for all
Departments where employees are in receipt of NDA.
6B.5.3 The Govt. had not revised the rates of Night Duty Allowance on the basis of
revised pay both while implementing the recommendations of the IV & V Pay
Commissions. The Board of Arbitration has also given award that NDA should be
calculated on the basis of current rates of pay including DA & CCA.
6B.5.4 We therefore, urge upon the VI VPC to recommend that rates of NDA should be
computed on the basis of revised pay recommended by VI CPC and it should be reviewed
annually in order to include the DA Admissible.
6.Travelling Allowance (TA)
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6B.6.1 The Govt. have prescribed traveling entitlements while on tour by Rail, Road or
sea for employees in different slabs (Vide their Ministry of Finance OM F No. 10/2/98-
1C & 19030/2/97-EIV dated 17.04,1998 and OM No. 31011/7/98-Estt(a) dated
21.07.1999).As the train/road/sea fare of the entitled class is fully reimbursed, including
the revised fares, we are not suggesting any change therein except that lowest paid
employees may also be made entitled to AC III tier entitlement.
6B.6.2 It is only rates of Daily Allowance which have become totally inadequate with
the result that Govt. employees have begun to incur loss.The restaurants providing
Tea/Coffee, breakfast, meals etc have revised their rates four times what they used to
charge in the year 1996 with which the rate of Daily Allowance stands related.
6B.6.3 Taking these factors into account we propose that VI CPC may kindly consider
and revise the Daily allowance rates at least three times of what were prescribed by the
Govt. in 1998 vide their above OM date 17.04.1998 when Govt. Servant is traveling or
stays in Govt public sector Guest House or makes his own arrangements. We also
propose that rates of daily allowance should be raised upward every alternate year.
Scheduled tariffs of hostels and establishments were not taken into account even while
prescribing rates of Daily Allowance where Govt. servant stays in a hotel etc. providing
boarding and or lodging even in the year 1996. In support of this we give below a
comparative chart of Daily allowance prescribed when Govt. servant stays in
Govt./Public sector guest house and when he stays in a hotel providing boarding and or
lodging.
In A-1 Class Station,
Pay Slabs Stay in Govt./ other guest house
Stay in Hotel Difference.
Rs 16400 and above. 260 650 390Rs 8000 & Above but below Rs 16400
230 505 275
Rs 6500 & Above but below Rs 8000
200 280 180
RS 4100 & above but below Rs 6500
170 245 75
Below Rs 4100. 105 125 20
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6B.6.4 There were no hotels howsoever nondescript which would charge less than Rs
100% even in the year 1996-1998 in any A-1 towns. Now the situation is that hotels at
all stations charge very exorbitant rates.
6B.6.5 Taking this reality into account we propose that the existing rates of Daily
allowance when Govt. Servant stays in a hotel with Scheduled Tariffs may be raised by
five times atleast in the case of those who are in the Pay scales of Rs 4100 and above but
less than 6500 and below Rs 4100 (present slab). In the case of employees in Pay Scale
of 6500 and above but less than 8000, the existing rates may be raised by 3 times the
existing rates and the officers in Pay Scales of Rs 6500 and above may be doubled.
6B.6.6 We also submit that Govt. should be asked to revise these rates every alternate
year by undertaking survey of rates charged by restaurants and hotels.
6B.6.7 The road mileage rates for road journey from office/residence to Railway
Station/ bus stand may also be doubled.
6B.6.8 The above proposals may kindly be considered by the VI CPC.
7.Transport Allowance.
6B.7.1 As against the recommendations of V CPC to grant Rs 800, Rs 400/ and Rs 100
to Executive, Supervisors and the category of supporting and Auxiliary staff as Transport
Allowance, the Govt. adopted the scales system as under for grant of transport allowance.
Pay Scales A-! and A Cities Other Places Employees drawing Pay in the scale of Pay RS 8000-1350
800 400
In the pay scale of Rs 6500-7900 or above but less than 8000-13500000
400 200
Employees drawing pay below the cale of RS 6500-6900
100 75
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6B.7.2 Both the recommendations of V CPC as also the manner in which it was
implemented were quite arbitrary, irrational and generated several anomalies. It was
found that these low paid employees who were residing far away from their offices got
the least compensation, the Officers who were generally provided Govt. Accommodation
near their offices got highest compensation. Another anomaly created was those
employees in lower pay scales but drawing higher rate of pay than the ones who were in
the higher pay scale but drawing lesser pay were getting lower rate of this allowance than
those in higher pay scale but at lower pay by Rs 300/Rs 400. This matter was considered
by the Board of Arbitration (JCM) and award has been given by them which is as under:
6B.7.3 Transport allowance shall be calculated on the basis of Pay Range/Pay Scales and not on the basis of pay scales. Employees in the Pay Range below RS 6499 shall be paid this allowance @ Rs 200/per month. For A-I and A Cities and Rs 150 for other towns. Instead of existing rates of Rs 100 and Rs 75 respectively. Whereas employees in Pay Range of Rs 6500 to 7999/- be paid transport allowance @ 500 for A-I and A Cities and Rs 200 for other places respectively. Keeping in view the financial implications we direct the Govt. to calculate and pay the Transport allowance on the aforesaid revised rates with effect from date of award ( 24.11.2005)”
It has still not been implemented.
6B.7.3 As per procedure laid down, the Govt. were to take a decision either to
implement or to refer it to Parliament for rejection or modification of the award within a
period of 6 months. Though we are not satisfied and would have liked to request the
Commission to improve upon the award but because of the award having been given by a
Judicial authority, we restrain ourselves at the moment and request for a recommendation
to implement the above award .
8.Leave Travel Concession.
6B.8.1 The Leave Travel Concession envisages reimbursement of expenditure on travel
to the declared home town once in a block of two years with a provision that a visit to
any place in India would be allowed in a block of four years.
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6B.8.2 The V CPC had recommended to give option to employees to avail the
Concession for travel to their Home Towns on three occasions in a block of four years by
surrendering their claim to the All India LTC which would otherwise be admissible. This
liberalization was not implemented by the Govt..
6B.8.3 Considering all the factors, we propose that two home town LTC in a block of 2
years or one All India LTC in a block of 4 years may be provided.
9.Special Pay
6B.9.1 As defined in FR-9(25) the Special Pay is granted in consideration of (a) the
specially arduous nature of duties, or (b) a specific addition to work or responsibilities.
For arduous nature of duties or for a specific addition to work or responsibility, there is
every justification for providing a higher Scale of Pay but with a view to contain the
multiplication of pay scale, the scheme of Special Pay was thought of. In any case,
therefore, it is an adjunct to pay and that was why it was treated as part of Pay under
FR.9.
6B.9.2 There is hardly any ground on which the Special Pay can be transformed as an
Allowance because it is not based on any compensatory considerations.
6B.9.3 The decision of the 4th Pay Commission to exclude it from Pay and
recommendation of V CPC to change its nomenclature to “Special Allowance” are
irrational and should be reviewed by the VI CPC.
6B.9.4 We propose that Special Pay which is granted in lieu of higher pay scale should
be treated as Pay for all purposes like DA , other allowances and retirement benefits.
10.Deputation (Duty Allowance)
6B.10.1 The V CPC did not change the rate of 5% of Pay as Deputation (Duty)
Allowance when deputation assignment is within the same station and at the rate of 10
percent of basic pay when assignment involves change of station which was
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recommended by the IV CPC. The only change they recommended was that ceilings of
Rs.250/- pm./ Rs.500/- p.m. prescribed by the IV CPC were removed.
6B.10.2 The result is that these rates do not provide enough incentive to persons
possessing the necessary expertise to offer themselves to serve on deputation and many
ex-cadre posts remain unfilled. This was also brought to the notice of V CPC by many
Ministries and Departments.
6B.10.3 The plea that with revision of pay scales the amount of this allowance in
absolute terms would also increase as advanced by the V CPC for not enhancing the rates
of this allowance has not altered the unwillingness of the persons with requisite expertise
to offer themselves on Deputation terms to man ex-cadre posts.
6B.10.4 That being the case, there is enough ground to restore the rates of
Deputation (Duty) Allowance to 10% of Pay when assignment is in same station & 20%
when assignment involves change of Station.
We request the VI CPC to consider the above proposal.
11.Scheme for Educational Assistance
6B.11.1 V Central Pay Commission, taking into account the general increase in the
cost of living and the impact of inflation recommended the following rates of
assistance/reimbursement :
(1) Children Education Allowance : Rs.100/- p.m. per child
(2) Reimbursement of Tuition Fee : (a) Rs.40/- pm per child for Class-I to X.(b) Rs.50/- p.m. per child for Class-IX to
Class-XII© Science Fee of Rs.10/- pm for Class-
IX to XII, if charged separately.(d) Rs.100/- p.m. per child for physically
handicapped and mentally retarded child from Class-I to Class-XII.
(3) Hostel Subsidy : Rs.300/- per month per child.
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6B.11.2 The V CPC also recommended a triennial review of the above scheme so
that rates could be updated to neutralize inflationary factors. In case of tuition fee, the V
CPC also recommended that it should be paid even when the children are admitted in
schools not recognized by the Govt.. The triennial review was demanded by the Staff-
Side in the National Council JCM in year 1999-2000 but it was turned down by the
Govt..
6B.11.3 We are now in an altogether different scenario as regards education is
concerned. Education has become a commodity to be traded. Whereas Govt. schools have
either been abolished or have very inferior infrastructure and Teachers, Private Schools
with Corporate Culture have sprung up in all corners of the country. They are charging
exhorbitant fees. Even for primary education, their tuition fee ranges between Rs.10,000/-
p.a to Rs.25000/- p.a. Tuition fee even in the Govt. schools have been raised
considerably.
6B.11.4 The Central Government employees especially at the lower strata find it
extremely difficult to meet the genuine aspiration of their children to get educated. The
Central Schools, which had a targeted admission procedure and affordable fees structure
have due to the Government’s policies, are not in a position to provide the required
facilities to the pupils. The Commission must recommend to either reimburse the entire
expenditure connected with the education of the wards upto the Secondary level
including all those are charged by the Public School or make available the necessary infra
structure to the Central School so that the wards of the Central Government employees
could be admitted to these schools and get educated on par with others in the Public
Schools.
6B.11.5 In this changed scenario, it is necessary that a detailed survey of fees etc.
being charged for imparting education is undertaken and the scheme of educational
assistance is revised. We propose that the rates recommended by V CPC may be revised
tenfold as at many places, there are no Central Schools.
12.Conveyance allowance.
6B.12.1 Fixed conveyance allowance is granted to Government servant whose
duties require him to undertake extensive traveling out or within a short distance from his
headquarters below the prescribed limit which do not render him eligible for daily
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allowance under SR 25. The present rate of such allowance is as under. This was fixed
w.e.f. 1.8.1997 vide MOF OM No. 19039/3/98-E-IV dated 18.9.1998.
Average monthly journey By Motor Car By other modes of Conveyance
201-300 560 185301-450 840 240451-600 1035 320601-800 1215 375above 800 Kms. 1500 425
6B.12.2 As per the Scheme, the Conveyance allowance is given only if a Govt.
servant uses his own vehicle or travels in a public transport system. Between 1996 and
2006 the fuel charges alone has been more than doubled and the cost for upkeep of the
vehicles has gone up substantially. We therefore, suggest that these rates may be tripled.
Since this allowance is mostly in the character of reimbursement of the expenses
incurred, it is necessary that these rates are revised every alternate year to co-relate it with
the rise in the prices of fuel, which spirals frequently with international price fluctuation
of petroleum products.
13.Overtime allowance.
6B.13.1 The third, fourth and fifth Central Pay Commissions had recommended
discontinuance of over time allowance except in the case of industrial employees, staff
car drivers and operational staff . However, the Govt. continued to pay overtime
allowance calculated on the basis of notional pay in the pre revised basic pay of IV
Central Pay Commission.
6B.13.2 This matter was referred to the Board of Arbitration in CA reference No. 2
of 2004. On 6.9.2005, the award was given to the effect that overtime allowance to all
employees entitled thereto shall be calculated on the basis of actual pay in the V CPC
revised pay scales and not on the basis of notional pay in the pre revised basis pay of IV
CPC with effect from 6.9.2005. As six months have already elapsed, the award had
become operative.
6B.13.3 We propose that overtime allowance should continue to be paid and
calculated on the basis of actual pay, DA and CCA from time to time. The rate of
overtime allowance should be re-fixed as and when DA is increased.
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14.Income-tax on salaries and Pension.
6B.14.1 The V CPC in chapter 167 of the report had undertaken sponsored study
on ‘feasibility” of exempting the salaries of Government employees from income-tax.
The fiscal Research Foundation (FRF) has favoured complete exemption of salaries paid
by the Govt. to its employees from income tax.. Such provisions already exist in
neighboring countries like Sri Lanka.
6B.14.2 The V Central Pay Commission, however, did not favour exemption of
Central Govt. employees from Income tax as a good option as it may not be equitable to
do so without according the same treatment to other employees. All the same time
realizing that salaries being recommended are quite moderate, the Commission concluded
that it should be net of tax. With all circumspection the Commission decided to start with
allowances and pension only as a first step. The Commission noted that the Ministry of
External Affairs pays ‘net of tax’ salaries to its employees on foreign postings under
section 195A of the Income-tax Act. This legal provision could be invoked in the case of
Central Govt. employees.
6B.14.3 The Commission finally recommended that all allowances of Central
Govt. employees may be paid net of tax. They also recommended that pensions
including dearness relief of all retired Govt. employees may be paid net of taxes.
6B.14.4 We propose that salaries of Central Govt. Employees and pension
(including Dearness relief) may be paid net of Income-tax.
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Chapter VII
Women employees
The V CPC had noted that women constitute 7.51%[2.83 lakhs] of the total
Central Govt. employees(1994-95) and 98% of the women employees are concentrated in
Gr.C and D cadres, most of them being in Ministries of Communication, Railways and
Defence. We do not have the latest figures of women employees, This can, however, be
said that number of women employees in the last 12 years must have grown.
7.2 The V CPC recognized the need for provision of special facilities for women
employees and recommended the following measures.
a) The concept of flexi-time may be tried out on an experimental measure in some offices where jobs are measurable and further extension may be considered later. Similarly the concept of flexi place could be tried out in some selected areas where work even if not done at workplace is strictly measurable.
b) Introduction of a voluntary system of option for serving women employees to work half time for a maximum period of six years in a career when the children are young and family commitments are at the maximum. This half time working may be accompanied with half of the Pay & allowances but not detract from other benefits like housing, LTC, Pensionary entitlement etc. The Govt. should work out the scheme in detail.
c) The Govt. have set up day-care centres and crèches in some places but their number is far below the requirement. The Govt. should consider to set up more day-care centres on Govt. land, construction of building being financed by Govt. Welfare funds. More Crèches in offices or major residential areas may be set up by the Govt..
d) While not agreeing with recommendation for 30% sub-reservation of women in public employment in each of the categories for SC/ST, OBC and General Category made by the National Commission for Women, the V CPC thought that a better method to ensure greater participation would be to identify certain professions which could be better manned by women such as education, health, nursing care, secretarial duties, computer work etc. At the same time the V CPC also felt that women should not be debarred from any profession including armed Forces, CPOs etc. For better womens participation and bring them into the mainstream, schemes for education of women may also be strengthened and strategies worked out for achieving equal opportunity for women.
e) The age of recruitment for women employees may be enhanced to 35 years.
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f) Govt. may earmark funds separately for construction of more single women’s’ hostel. There should also be some scheme to assure housing for married women employees.
g) The existing guidelines for posting of husband and wife at the same station needs to be reiterated and expanded to include the provision that where posts at the appropriate level exist in the organization at the same stations, the husband and wife may invariably be posted together in order to enable them to lead a normal family life and look after the welfare of the children especially till the children are 10 years of age. Where only the wife is Govt. servant, some guidelines may be framed to facilitate posting in a station where husband is employed.
h) The Ministries having a higher concentration of women employees may consider to provide for higher leave reserve.
i) Arranging charted ‘ladies-special’ buses in bigger cities.j) The basic requirement of public convenience facilities for women
employees may be completely met by setting aside funds for the purpose.
k) Where husband and wife are both Govt. employees the creation of an earned leave bank to be availed of by either spouse may be considered only for a period needed for rearing very young children(such period not exceeding six years in all), provided the women employee has exhausted the earned leave at her credit and there is earned leave to the credit of her husband.
7.3 We find that the recommendations at a);b);e);f);j);&k) have not even considered
by the Govt. and therefore, have not been implemented. The action taken to implement
the recommendation at c) and i) is not enough.
7.4 These recommendations at (d) above is very vague and general. What is needed
is to implement the recommendations of the National Womens Commission for 30% sub-
reservation which will automatically enthuse women to equip them and bring them in the
mainstream.
7.5 The recommendation at (g) above also remains to be implemented. It is observed
that in spite of the existing guidelines for posting husband and wife in the same station, it
is not being observed particularly in case of Gr.C women employees. These guidelines
have to be made mandatory so that the posting of husband and wife in the same station is
ensured.
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Chapter VIII
Special Duty allowance (NE Region)
Due to the then prevailing insurgency and disturbances in the North Eastern
Region, the Staff Side brought in an agenda for discussion in the National Council for the
grant of certain special allowances to the Central Government employees posted there.
The Govt. responded by setting up a committee, which was headed by the then Secretary,
Personnel. The Govt. of India issued orders to give effect to various recommendations of
the said committee. (O.M No. 20014/3/83 E) dated14.12.1983) The said order regulated
the various allowances to the Civilian employees posted in the States of North Eastern
Region. The most important factor that had gone into the formulation of
recommendation of the committee was the risk and dangers the employees posted in
these regions had to face in the then prevailing socio political situation. One of the
recommendation of the Committee was to grant a special duty allowance at the rate of
25% of pay subject to a ceiling of Rs. 400. This was later changed to 12.5% of pay
subject to a ceiling of Rs. 1000/-.
8.2 One of the most debilitating conditions, the Government prescribed for the grant
of the said allowance was the requirement of an all India transfer liability in built in the
terms of conditions of employment of the officials posted in NE Region. This was later
modified by extending the benefit to all the State Cadre Officers. Viz. IAS, IPS etc. as
also the personnel in the Para Military forces viz. Assam Rifles, who in the normal course
are not liable to be transferred outside the state to which they are initially posted. In short
the allowance was restricted to Group A officers of the Government of India, generating
resentment amongst the non gazetted employees of this region. It must be noted that it is
primarily the non gazetted employees who are at the cutting edge of public contact who
are the victims of the risk and danger emanating from the socio political situation in the
region. We may also bring to the Commission’s notice that large number of Railway
employees posted at various parts of N.E. Region were burnt alive; many were shot dead
while on duty. Besides, many employees had to face abduction and are subjected to
extortion. The insurgency in the area has increased leaps and bounds. In essence, the
Government converted the risk allowance into an incentive scheme for eliciting the
voluntary response from the officers for being posted to North Eastern Region. This
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arbitrary decision gave rise to agitation and plethora of court cases. In certain cases, the
Government succumbed to the organized agitation and in others, the Govt. had to
implement the directive of the Court. The anomalous position that emerge today is that
the entire Group A Service personnel posted in the North Eastern Region and large
section of other Civilian employees are granted the said allowance, a good section of the
employees are denied thereby perpetuating the element of discrimination.
8.3 The issue was also subject matter of consideration by the 5th Pay Commission.
The Commission extended the benefit to the IAS officers posted in Sikkim and removed
the ceiling of Rs.l000. The Govt. has later extended the benefit to the officers posted in
Andaman Nicobar Islands.
8.4 It must be noted in this connection that the State Cadre Officers viz. IAS IPS are
not liable to be transferred out the State to which they are allotted and most of the Para
Military personnel especially of Assam Rifles etc. are not moved out of the region. If at
all they are to be transferred, they are only to be transferred out of North Eastern Region.
The Staff side had taken up the matter before the National Council even after the 5 th CPC
recommendations were implemented. On various occasions, the issue was discussed but
without reaching an agreement. The Government has indicated that this issue will be
specially referred to the 6th CPC for their consideration. We request the Commission to
look into the issue and ensure that the arbitrary decision that has given rise to senses of
discrimination and discontent amongst the non gazetted employees in particular is set
aside and the allowance is recommended to be granted to all employees and officers
posted in the North Eastern Region.
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Chapter IX
Miscellaneous
1.Housing facilities
Housing is a basic human need and valuable to promote sociological, biological
and economic well being in society. The 5 th CPC dealt with this matter in great details
and make the following recommendations :
The action is taken by the Government is also indicated :
(a) Govt. should make efforts to achieve the housing satisfaction level of 70% in Delhi and 40% in other cities and towns within a period of 20 years :
Action: No effects to achieve the above targets have ever been initiated by the Government , An issue of constructing a hostel in Delhi for Government employees has been pending in the National Council JCM since 1994
(b) Leased Accommodation in field organizations should be provided as is being done by the Railways to ease the problem of housing including sale lease by employees.
Action. None of the departments have taken any action in this regard.(c) The residential properties taken over by the Government under
provisions of Income tax Act should be allotted to Government employees instead of auctioning such properties.
Action. Not implemented by the Government.
9.1.2 We, therefore, suggest that Government’s commitment to implement these and
such other recommendation which the 6th CPC may make should also be insisted by the
Commission.
2.Medcial facilities for the employees.
9.2.1 On this matter also most of the recommendations made by the 5tyh CPC have not
been implemented by the Government like pooling all authorized Medical Attendants
Attestation into a single CGHS health agency for providing CGHS facilities for limited
hours in a day, till regular dispensaries can be operated, contributions paid to towards the
medical facilities be treated as deductible from total income, extending the scheme of life
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time contribution available to pensioners, also to serving employees as well, introduction
of health credit card, compulsory medical examination once in a 3 years at Government
cost for all employees beyond 40 years of age.
9.2.2 Similarly on the following matters also, most of the recommendations made by
the 5th CPC have not been implemented.
1. General Provident Fund2. Leave entitlement3. Hours of work and holidays4. Welfare measures like recreational facilities5. holiday home6. benevolent fund 7. Canteen facilities8. Service matters.
9.2.3 We, therefore, suggest that these recommendations may be referred to the JCM to
arrive at an agreement to implement them. Alternatively, the 6 th CPC may take a firm
commitment from the Government to implement these recommendations.
9.2.4 As regard Service Rules are concerned, we are of the view that the Parliament
may be requested to enact a Law on these Service matters (Conduct, CCA, etc.) Rules as
required under Art. 309 of the Constitution. Since the powers given to the President to
frame these rules as per Proviso to Article 309 of the Constitution, is only a transitional
power it is high time that these rules are now framed by the Parliament through an Act of
Parliament. The existing Service rules are legacy of the colonial power and these are
most oppressive and in curtailment of the democratic rights, not all in conformity with
the rules which are applicable to Civil Service in other democratic countries like Britain,
France etc. The Commission may for this purpose give a draft bill on the lines of service
rules applicable to British Civil Service to the Government.
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3.Fixation of Pay on Promotion.
9.3.1 The V Central Pay Commission had recommended that provisions of FR I()a)(1)
(Old FR 22c) may be amended to provide an addition of 3% of basic pay in the lower
grade or one increment in the lower grade. As a result of negotiation it was decided that
on promotion minimum increase of Rs 100 may be ensured. There are certain posts in
the Central Secretariat in which a minimum of RS 650 increase in pay is being allowed
on promotion.
9.3.2 As an increase of Rs 100 would be quite inadequate in the revised scheme of
things where lowest rate of increment of Rs 500/- has been suggested by us, we propose
that on promotion there should be a minimum increase by two increments or of Rs 1000/-
whichever is higher.
4.Fixation of Pay in the Revised Scales.
9.4.1 The pay in the revised scales of IV and V Central Pay Commission was fixed by
adding 20% and 40% of existing basic pay in the emoluments (Pay (including stagnation
increment) +DPA +DA +IRs + Special Pay, if revised scale did not carry any special Pay
+ NPA) and then fixing it at the next stage in the revised Pay Scale. If the revised pay
crosses the maximum of the revised pay scale, the revised pay was to be fixed at the
maximum.
9.4.2 The above method of fixation of pay has not been fair to senior employees. We,
therefore, propose that fixation of pay in the revised scale should be on point to point
basis so that number of increments carried in the pre revised scale of pay are also granted
in the revised pay scales.
9.4.3 We also suggest that benefit of FR 23 also should be available to the employee
i.e. to opt for revised. Pay Scale on any date on which he earns increment in the pre
revised scale.
5.Date of effect.
9.5.1 The V Central Pay Commission in para 171.12 of their report had observed that
the Govt. should concede the right of Central Govt. Employees to have complete pay
revision once in 10 years. As the recommendations of V CPC were implemented with
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effect from 1.1.1996, the said Commission stated that “the date of implementation of
sixth pay Commission should be predetermined as on 1.1.2006. irrespective of when the
next pay commission is actually appointed”.
9.5.2 According to V Central Pay Commission’s recommendation , the VI Central Pay
Commission was to be set up on 1.1.2003 so that its report is available by 1.1.2006. This
demand was raised in the National Council JCM in the year 2003 but Govt. declined even
to consider it. Finally the VI CPC was set-up in the month of Oct. 2006 and that too only
when the employees had served a strike notice on 7.2.2006. Even after having agreed in
principle to appoint the VI CPC on 15.2.2006, the Govt. took about 9 months to actually
notify the appointment of Pay Commission. However, as the issue of date of effect of VI
CPC had already been specifically recommended to be 1.1.2006, to put in place a system
of decennial pay revision, there was hardly any justification for asking the VI CPC to
recommend date of effect of the revised pay scale recommended by it. The inordinate
delay in the appointment of VI CPC Pay Commission is solely attributable to the Govt.
This cannot be a ground for any change in the date of effect (1.1.2006). The V CPC had
submitted its report in January, 1997 and its recommendations could be implemented in
the month of Sept. 1997, thus entailing the arrears of pay for 21 months.
9.5.3 Therefore, we propose that the Govt. should be asked to pay an interim relief @
15% of pay with minimum of Rs 1000 with effect from 1.1.2006. This would reduce the
amount of arrears which may have to be paid when the report of VI CPC is available in
April 08 and Govt. implements it.
9.5.4 The alternative is that the VI CPC may first give their recommendations on
revised Pay structure within a period of six months so that it is implemented in the year
2007 itself. Report on other matters may be submitted later on.
9.5.5 We reiterate and urge strongly that the recommendations of the VI CPC on
revised Pay Scales and allowances should be implemented with effect from 1.1.2006.
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6.Classification of Posts.
9.6.1 The System of classification was initiated in 19th Century by the colonial Power
by dividing posts into non-gazetted and Gazetted. This was done only with a view to
justify discrimination in matters of certain perks. The nongazetted was bifurcated into
Class IV( Group D) and Class III (Group C) and the Gazetted Posts were also divided
into Class II and Class I consisting of promotee Officers and Class I All India Services.
The objective again was to practice discrimination in matters of certain perks.
9.6.2 The Department of personnel and Training introduced another category of Group
P non-Gazetted placing Assistants of Central Secretariat in it. This classification even
did not carry any element of perks which are denied to Group C non-gezetted. As such it
has no justification for which it should have been created.
9.6.3 We therefore propose that the Classification of Group B ‘non-gazetted’ may be
done away with and all posts now classified as Group B Non-gazetted may be merged
with Group C.
9.6.4 We, therefore, are of the view that the classification of Group A and Group B in
the Gazetted Category and Group C & Group D in the non-gazetted category (by merging
Group B Non gazetted posts in Group C may be prescribed by the respective
Administration and there should not no ceiling of pay being prescribed by the
Department of Personnel and Training.
9.6.5 The VI Central Pay Commission may consider the above proposal.
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Chapter X
Extraneous Matters
It has been observed by us that Pay Commission have been asked in the past to
suggest on certain extraneous issues. This was more pronounced in the case of the 5th
CPC. The 5th CPC was inter-alia, asked to make recommendations on the following
issues :
1. Optimizing the size of Govt. machinery.
2. Human resource development.
3. Modifying the role of the Government in the era of globalization etc.
10.2 These are in no way related to the issues of revision of Salary structures and other
benefits. The 5th CPC while admitting that the tasks were more or less in the nature of
administrative reforms and that time at their disposals to delve deeply into this matter
entrusted this task to certain consultancy and adopted their reports.
10.3 The request of the Staff Side of JCM that they should be consulted before
finalizing the recommendations on the above issues Public Service Management and
other Reforms were not considered by the said Commission. The result was that the
Commission without proper examination and or consultation gave the following
sweeping suggestion :
i. abolition of 3.5. lakhs vacancies
ii. 30% reduction in staff strength across the board in next 10 years
iii. offloading of certain tasks not need to be done by the Govt.
iv. pass on tasks to State Governments
v. transfer certain functions to corporate entities in Public Sector;
vi. contract out functions to private sector
vii. transfer some entities to Co-operative sector
viii. convert some institution into autonomous bodies etc.
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10.4 The 5th CPC emphasized that their report should be taken as a single document
and the inter connectedness of various elements of the report should be borne in mind
while taking individual decision. In particular, the Commission insisted that the size of
the bureaucracy should be brought down drastically and employees shoulder more
workload and responsibilities and be accountable while they are given a revised salary
structure.
The 6th CPC too has been asked by the Government to:
(a) transform the Central Government organizations into modern,
professional and citizen friendly entities that are dedicated to
the service of people;
(b) harmonize the functioning of the Central Govt. organizations
with the demands of emerging global scenario etc.
10.5 We are of the considered view that it would be appropriate to have these issues
discussed in the fora of Joint Consultative machinery or to entrust these two
Administrative Reforms Commission or study groups and have widest consultations. In
any case, it would be a time consuming task which cannot be completed within the time
at the disposal of the Commission. We, therefore, suggest that Commission should advise
the Govt. to set up an Administrative Reforms Commission or entrust this task to a joint
committee of National Council of JCM .
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Part II
Chapter I
Group-`D` Staff:
The V Central Pay Commission did not accept any of the demands for up-
gradation of various categories of Group-`D` Staff. On anomalies caused due to merger
of S-2 Pay Scale of Rs.775-1025 and S-3 Pay Scale of Rs.800-1150 (vide Para 53.9 of
their Report), the said Commission did admit that “No doubt, this might have resulted in
disadvantage to some employees, but this is inherent and unavoidable in any scheme of
rationalization”. This merger though done “only in consultation with the Staff Side in the
National Council of the Joint Consultative Machinery, to do away with the stagnation in
the lower scale resulting in lower pension on their retirement, it was still necessary that
the anomalies pointed out to the Commission were rectified. We do hope that VI CPC
will rectify these anomalies.
1.2 While demand for parity between Peons and Postmen/Constables of Central
Police Organizations etc. was rejected due to substantial differences in their duties and
responsibilities, by the V CPC, the demand for parity with the Pay scale (Rs.950-1560)
applicable in the New Delhi Municipal Committee (DMC) for the post of Peon,
Safaiwala, Farash and Chowkidar should not have been summarily rejected by the V CPC
on the ground that DMC was an autonomous organization and the Commission had not
conceded the demand for parity with Public Sector. For similar qualification and same
nature of duties there should be same scales of pay in terms of the principle of `Equal Pay
for Equal Work`. We, therefore, strongly urge upon the VI CPC to look into this demand
as it is based upon the aforementioned principle.
1.3 Finally, the only recommendation which the V CPC gave about Group-`D` staff
was creation of four occupational groups, viz., Office Attendants, Cosmetic Attendants,
Security Attendants and Malies. This rationalization, if implemented would have
adversely affected Cosmetic and Security Attendants whose total number in comparison
with Office Attendants is too meagre and, therefore, their promotional prospects would
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have been reduced to virtual extinction. The Govt. advisedly did not accept this
recommendation.
1.4 There was another demand about benefit of fixation under FR I(a)(1) for
sweepers, Farashes, Chowkidars on promotion to the post of Peon. This matter was
referred to the Board of Arbitration (JCM) which has given an award for grant of the
benefit of FRI(a)1 (Old Rule FR-22-c) to the aforementioned categories of staff on
promotion to the post of Peon. We request the VI CPC to look into and ask the Govt. to
implement the above award.
1.5 We have observed that the number of Posts in the higher Pay Scales of Rs.775-
1150(S-2A) and Rs.825-1200 are very few in numbers when compared with the lowest
Pay scale of Rs.750-940. Invariably these recruited in the lowest pay scale have to wait
for long 12 years (i.e., one year before reaching their maximum) for grant of ACP in the
next pay scale of Rs.775-1150 when they have virtually reached the fag end of even the
higher pay scale where they have to stagnate for next many years before 2nd ACP is
granted.
1.6 Taking this into account we are of the considered opinion that all Group-`D`
employees may be treated as one group capable of performing various duties and a
system of time bound promotion with benefit of FR-22(1)1 (Old Rule FR-22C) may be
devised so that a fresh entrant in the Pay Scale S-1 may be granted S-2A at the end of 8
years and S-4 after another 8 years and S-5 after another 8 years.
1.7 Similarly of the matriculate Group-`D` employees, who qualify in Departmental
Examination should be promoted to S-5 as soon as they qualify instead of waiting for a
vacancy to arise in the cadre of LDC which can be earmarked for promotion quota of
10%. The direct recruitment quota in the Cadre of LDCs (S-5) may be adjusted every
year after such promotion.
1.8 Jamadars, Daftries, Gestetner operators are the various cadres to which a Group-
D employees, recruited as a Peon can aspire to be promoted, if he does not acquire the
requisite academic qualification of “matriculatation”. The Socio-economic condition in
the country is such that large number of Children drops out of school without completing
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even the primary education. The number of these higher level posts are meager and
constitutes a small percentage. We request the Commission to look into this matter and
recommend up-gradation of at least 20% of the Gr.-D posts on functional basis to any of
the aforementioned cadres. This is needed to provide functional promotion to those
Group D employees, who are not educationally qualified to be promoted as LDCs.
1.9 We urge upon the VI CPC to consider our above proposals.
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Chapter II
Office Staff in Non-Secretariat Organisations
The V Central Pay Commission had looked into the organizational structure of
ministerial posts and found that this differs from organization to organization depending
upon the cadre strength and functional requirements of these organizations. After
examining the different set up and considering the demands placed by various
organizations, the V CPC recommended that the cadre of ministerial posts in Non-
Secretariat Organisations should be organized in the following manner:
Posts No. of Posts Pre-revised (IV CPC)
Pay Scale
Remarks
LDCs 19,481 Rs.950-1500 No change/up gradation allowed
UDCs 15,353 Rs.1200-2040 -do-
Assistants 23,373 Rs.1600-2660 Merged Pay Scales of Rs.1400-
2600 & 1400-2300 & upgraded
10% of UDCs in receipt of 35/ Spl.
Pay was also merged.
Office
Supdt.
5,535 Rs.1640-2900 Merged Rs.1600-26—(4935) posts
with 1640-2900 (610) posts –
upgrading the former posts.
2.2 We do not have the latest figures of LDCs but their number has considerably
come down. The job profile of the posts has also under gone significant changes. They
are no longer maintaining inward-outward registers (diaries) on account of
computerization. Typewriters have been sold out. They now work on computer. In some
offices of Accounts, they are now being detailed to do accounts work like maintaining
P.F ledgers etc.. In some offices, they have been given training to acquire a requisite
minimum speed of 8000- depression per hour.
2.3 In these changed circumstances, we propose that the post of LDC may be granted
replacement scale of pay of S-6: 3200-85-4900.
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2.4 The 5th Central Pay commission assigned the scale of pay of Rs. 4000-100-6000
to the UDCs. The entry grade educational qualification prescribed for UDC is
“graduation”. The V Central Pay Commission admitted that in certain Departments like
the Central Board of Direct Taxes, Central Board of Excise & Customs & Accounts
Deptt. 50% of posts are filled in by direct recruitment. While it has recommended the
scale of pay of Rs. 4500-125-7000 to the Clerks in the Railways on the consideration that
33.33% of the vacancies in the cadre were being filled up by graduates, the UDCs in the
Departments under the Central Board of Excise and Customs, Central Board of Direct
Taxes, Organized Accountings Services and many others, the assigned scales of pay for
UDCs was only Rs. 4000-100-6000. Even though the issue was brought before the
National Anomaly Committee for rectification, it is yet to reach its logical end, as the
Government has so far not appointed the Arbitrator. While the discrepancy was set right
in the organized Accounting Service by an executive order issued by the Government
later, which was given effect to from 1.01.1996, in all other Subordinate services, this
anomaly remains unresolved. We request the Pay Commission to recommend to
Government to remove this anomaly and assign them the replacement scale of pay of
4500-125-7000. This is all the more required on the ground that while the direct entry in
the Railways are only 33.33%. in all other subordinate offices, it is either 50% or more.
2.5 Assistants in offices in Non-Secretariat Organization have not been granted the
same pay scale which has been assigned to Assistants of Central Secretariat. The V CPC
had maintained the traditional approach of keeping Assistants or even stenographers of
Central Secretariat at a higher pedestal on the specious plea that they discharge more
complex nature of work whereas the Assistants in Non-Secretariat offices only attend to
routine duties. This does not have any logic. Such discrimination acts as a demotivating
factor in respect of employees in subordinate offices. This unjust discrimination should
go and Assistants in offices in Non-Secretariat Organization may be brought on par with
Assistants in the CSS. Recently, Assistants in the Central Secretariat has been assigned a
higher pay scale of Rs.6500-10500/-. Accordingly, we propose the replacement scale of
of Rs. 6500-10,500 to the Assistants in the Subordinate offices.
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2.6 Vide para 46.17 of the recommendation of the 5 th CPC, the UDCs who were in
receipt of Special pay of Rs. 70/ for the reason that they had been assigned jobs
equivalent to that of Assistants of the Central Sectt. in the subordinate offices, were to be
up-graded as Assistants with the scale of pay of Rs. 5000-8000. In many subordinate
offices, this recommendation of the 5th CPC has not yet been carried out, even though the
Govt. did accept this recommendation. The Govt. may be asked to give necessary
direction to the heads of such organization to carry out this decision.
2.7 In view of what has been proposed in the foregoing paragraph, it would become
necessary to place the Office Superintendents in as higher scale of pay. Our suggestion
in this regard is to upgrade the cadre of Office Superintendents as Administrative
Officers Gr. III.
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Chapter III.
Stenographers
The V Central Pay Commission have made the following recommendations in
respect of Stenographers in offices in Non-Secretariat Organization :
“We do not concede the demand for absolute parity in regard to pay scales between stenographers in offices outside the secretariat and in the secretariat notwithstanding the fact that some petitioner Stenographers Gr.-II has got the benefit of parity in pay scale (of Stenographer Gr.-C of Secretariat) through long.” (Para 46.34 of V CPC Report) – “We are of the view that Stenographers Grade-II should be placed in existing pay scale of Rs.1600-2600 (IVCPC) instead of Rs.1400-2300/1400-2600.” (Vide Para 46-4 of VCPC Report).
3.2 With due respect to VCPC, we would like to point out that the above
recommendation of the VCPC has caused the co-existence of two scale of pay for
Stenographers in Gr. II in subordinate offices as under:
(a) For those Gr. II Stenographers who could obtain
favourable order from the Tribunal or High Court: Rs. 5500-9000
(b) those who did not make a petition before the CAT
or the High Court Rs. 5000-8000
3.3 The decision of the 5th CPC was not only unfortunate but bereft of any merit. It
indeed perpetuated a sense of discrimination. The issue was brought before the
Government for rectification through the National Anomaly Committee. Govt. has
allowed the matter to drag by recording disagreement. Since no Arbitrator was appointed
by the Govt. till date, the issue is hanging fire. Having exasperated over the dilly
dallying tactics adopted by the Government some of the Stenographers Gr. II had to
petition to the Court and get similar orders. Those orders are being implemented and the
other are left in the lurch. It would be prima facie evident that there had been no
justification for the 5th CPC to suggest two different scales of pay for the Gr. II
Stenographers in the Subordinate offices. We request the Commission to undo this
injustice by recommending the replacement scale of pay of Rs. 5500-9000 to Gr. II
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Stenographer, which would automatically bring about the replacement scale of Rs. 6500-
10500 for the Stenographer Gr. I in subordinate offices. This anomaly is required to be
set right with effect from 1.01.1996.
3.4 We, therefore, propose that this anomalous situation should be rectified by grant
of higher pay scale of Rs.5500-9000 to all Stenographers Gr.-II of Offices outside the
Secretariat with effect from 1.1.96.
3.5 In the pay structure recommended by the Pay Commission, the higher posts of
Stenographer in offices outside Secretariat would automatically be placed in the next
higher pay scales, viz., Stenographer Gr.-I instead of Rs.5500-9000 to Rs.6500-10500/-.
3.6 As regards Stenographer Gr.-III is concerned our proposal is for the replacement
of Pay Scale of Rs.4000-6000 by Rs.4500-7000 for the reasons detailed in Part I of this
memorandum taking into account the highly skilled nature of their job and in the
background of the non-availability of qualified personnel to fill up the vacancies of
Stenographers existing presently in various departments of the Government of India.
3.7 The other issues, peculiar to this cadre will be dealt with by the concerned
departmental Associations/Federations.
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Chapater IV
Other Common Categories.
1.Hindi translators:
Hindi Translators in Subordinate offices are in two grades :
Junior Hindi Translator, Rs. 5000-8000
Senior Hindi Translator Rs. 5500-9000
4.2 Junior Hindi Translator is the entry Grade and the Senior Hindi Translator is the
Promotional Grade. The recruitment qualification prescribed for Jr. Hindi Translator is
Post Graduate degree in Hindi or English with English or Hindi as elective subject or
Graduation with Diploma in translation. In the Central Translation Bureau, the two
grades are designated as Technical Asst. Sr. Translator.
4.3 The 5th CPC recommended the following Scale of Pay for the two grade in the
two organization as under :
Posts In CSOLs and Subordinate Offices
In Central Translator Bureau
Jr.Hindi Translator Tech. Assistant. .
5000-150-8000 5500-9000
Sr. Translator 5500-175-9000 6500-200-10500
4.4 Having insisted that the minimum educational qualification should be “Post
Graduation” or “Graduate with Diploma in both the organizations, it was incorrect to
recommend different scales of pay to them. This is an anomaly disturbing the horizontal
relativity. We also find that the assigned duties and responsibilities and job characters in
both the two organizations are not in any way different to justify the different pay scales
This is also one of the issues that was taken up in the National Anomaly Committee
awaiting presently resolution for want of appointment of Arbitrator. We request the
Commission to consider our submission to bring about parity in the pay scales in these
two organizations by assigning the replacement scale of Rs.5500-9000 for Junior Hindi
Translator and 6500-10500 for Senior Hindi Translator.
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Chapter V
Care Takers
Care takers are entrusted with the job of supervising the work of safari
karamcharis, farashes, chokidars etc. They are to ensure the general upkeep, sanitation,
and cleanliness etc. of the office premises. In all Government offices, without exception,
in the name of financial constraints, this important area of work is seldom cared. While
separate cadre of Care Takers exists in larger organizations like Railways, Postal,
Defence etc, these are en-cadre posts in other organizations. The 5 th CPC suggested
certain norms for the creation of caretaker posts in various organizations. (See:
Para.55.38: Page 723) The recommendation of the 5 th CPC in our opinion places
unbearable burden on the Care Takers and consequently the general upkeep of the work
suffers. We suggest the following norms for the consideration of the Commission.
Upto 1000 Sq. meters. Care taker job may be assigned to an
employee in the scale of pay of UDC with a
caretaking allowance equivalent to 10% of
Basic Pay.
Upto 2000 Sq. meters One employee on full time job in the scale
of UDC
2000- 5000 Sq. meters Two Care takers; one in the scale of pay of
UDC and the other in the scale of pay of
LDC
5000-7000 Sq. meters Three posts; one post in the pay scale of
5000-8000, one in the pay scale of UDC and
the other in the scale of pay of LDC
7000-14000 4 posts. One in the scale of pay of 5500-
9000 and the rest three in the scale of UDC
14000-20000 5 posts. One in the grade of 6500-10500,
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One post in the scale of pay of 5500-9000
and the rest three posts in the scale of pay of
UDC
20000 and above Six posts: Two posts in the scale of pays of
6500-10500; Two posts in the scale of pay
of Rs. 5500-9000 and three posts in the
Grade of UDCs.
5.2 These posts are to be filled up by transfer from the mainstream cadre from among
the persons working in the next below grade on the basis of temporary promotion with
fixation benefit. They may be permitted to revert to the mainstream cadres as and when
he is promoted to the equivalent cadre with the benefit of the fixation of pay carried from
the date of the temporary promotion.
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Chapter VI
Staff Car Drivers
The 5th CPC recommended three grade promotions to the Staff Car Drivers. On
the basis of the judicial pronouncement, in some of the departments, the number of
grades has been raised to four. However, the recommendation of the 5 th CPC that the
promotion should be time bound and not related to the vacancies in the higher grade was
not accepted by the Government. The cadre of Staff Car Drivers in all Subordinate
offices has now been structured on the basis of the percentage of post in each cadre as
determined by the Department of Personnel. The non-acceptance of the 5 th CPC
recommendation resulted in the continuing stagnation and elongated waiting period for
promotion. The time bound promotion without altering the overall cadre strength is the
only remedial solution to meet the reasonable aspiration of the Staff Car Drivers. We
request the Commission to recommend to the Government for the acceptance of this
suggestion. We also suggest that the pay scales of the Staff Car Drivers in various grades
should be so fixed taking into account the fact that acquiring the prescribed minimum
qualification with a valid driving license has undergone change recently.
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Chapter VII
Electronic Data Processing Staff:
The recommendation of the 5th CPC in respect of Electronic Data Processing Staff
is in Chapter 55 Page 731-749. There is no uniformity either in the pay scale or in
respect of other service conditions of the EDP staff in various organizations even today.
The 5th CPC brought about rationalization of pay structure and promotional avenues in
the case of DEOs and Data Processing Assistants. However, to conform to the functional
need and other organizational requirements, changes were effected by the concerned
Departments. While our affiliated organizations will be submitting their specific
proposal in this regard through their memorandum to the Commission, we would only
reiterate the need for addressing to the genuine career aspirations of the EDP Staff whose
number has been increasing over the years in all organizations of the Government of
India. In many organizations, the cadre is still to be organized with a proper hierarchical
set up. It is therefore, necessary that at least up to certain levels, promotions are made
time bound without resort to the arising of vacancies in the higher grades. This is needed
to retain the services of the experienced EDP staff within the organization.
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Chapter VIII
Canteen Employees:
All India Central Government Canteen Employees and workers Association has
already submitted a detailed memorandum on behalf of the Canteen employees. The said
Association is an affiliate of the Confederation. In their memorandum they have traced
the duties and responsibilities of the Canteen employees, the various judgments of the
High Courts and Supreme Court and have placed the following proposal for the
consideration of the Commission.
8.2 We enclose a copy of their memorandum as annexure and request that the
Commission may recommend to the Government the above proposed scale of pay for the
Canteen employees.
Sl.No.
Designation Replacement scale of
1. Safai Karmachari 2550-32002. Wash Boy 2550-32003. Bearer 2610-35404. Tea / Coffee maker 2610-35405. Cook 3050-45906. Asst. Halwai 3050-45907. Clerk / Salesman 3050-45908. Halwai 3200-49009. Cashier 3200-490010. Store-keeper/ Asst.
Manager3200-4900
11. Manager Grade-III 4000-600012. Manager Grade-II 5000-800013. Deputy General Manager 5000-800014. Accountant 5000-800015. General Manager 5500-9000
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Chapter IX
Cash handling allowance ;
Posts of Cashiers exist in big organizations. . In smaller Departments certain
mainstream cadre employees are asked to handle the cash disbursement function, over
and above their normal duties. Our suggestion is that wherever fulltime cashier post is
justified, it should be sanctioned. Those who are posted as Cashiers, they may be
allowed the cash handling allowance as under:-
Average month disbursement Amount of allowance
Upto 50,000 Rs. 300/-
50,000 – 2 lakhs Rs. 600/-
2 lakhs to 5 lakhs Rs. 800/-
5 laksh to 10 lakhs Rs. 1000/-
Over Rs. 10 lakhs Rs. 1500
9.2 The Group D employee who assist the cashier may be given the cash allowance
@ Rs. 150 per month. All those who are handling the cash disbursement functions
should be given the allowance as per the rates mentioned above including those who are
assigned the job as a temporary measure. The rates are constructed on the basis of the
new pay scales suggested by us elsewhere in the memorandum. We request the Pay
Commission to consider our suggestion in this regard and recommend to the Govt.
accordingly.
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Chapter X
Leave Entitlements :
There was a recommendation of the VCPC for in-service encashment of leave at
the time of availing of Leave Travel Concession (vide Para 117.6(i) of the V CPC Report.
Since this was not accepted, the matter was taken up before the Board of Arbitration,
whose award is still to be accepted and acted upon by the Govt. We request the
Commission to recommend to the Govt. to accept the award and implement the same.
10.2 The recommendation of the 5th CPC to extend the concession of treating the
period of travel in excess of two days as only “travel time” provided the employees
posted in the North eastern to those posted in other remote areas is still to be accepted by
the Government. There are inaccessible remote areas in many parts of the country other
than North Eastern Region. We request the Commission to look into this aspect and
make necessary recommendation.
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Chapter XIAssured Career progression:
Systematic career advancement with a pre- determined residency period in each
cadre is what every employee aspires for. Vacancy based promotions had been the
system prevailing in almost all Government departments until the Railways introduced
the periodical cadre review. It was an experiment carried out with success and brought
about fair amount of satisfaction to the Railway workers. Even though the 4 th CPC
recommended to have the scheme adopted by all the departments, this was not heeded to.
Postal department introduced a time bound promotion scheme in 1983 in which the first
promotion was offered after 16 years and the second after 26 years. The scheme had the
distinct advantage of having promotion without the pre-requisite of a vacancy in the
higher cadre.
11.2 The 5th CPC evolved the assured career progression scheme, which was adopted
by the Government with certain modifications. The scheme ultimately evolved was a
modified version of the in situ promotion or financial up-gradation. In the case of Group
C and D cadres, the financial up-gradation is offered twice in the career with a residency
period of twelve years. As per the scheme, one is entitled for the financial up-gradation,
only if he is otherwise eligible for functional promotion. No doubt the system has helped
quite a number of employees. Despite the plethora of clarifications issued by the DOPT,
the system has brought about anomalies by virtue of which the Senior employees are
placed in a lower scale, especially in those cadres where lateral entry is provided for. Our
suggestion in this regard is to simplify the scheme and make it to cater to the requirement
of three financial up-gradations in the total service span. Since it is only a financial up-
gradation, the prescription to adhere to all the eligibility criterion of the recruitment rules
may have to be dispensed with.
11.3 The Commission may kindly note that the 5th CPC recommendation has ensured
time bound 5 promotions in all organized Group A Services, by adjusting the cadre
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strength through frequent cadre reviews. If similar scheme of functional promotions in a
time bound manner through the cadre review is introduced in the case of Group C and D
cadres, the necessity for an assured career progression might not perhaps arise at all.
11.4 We, therefore, suggest that every employee must be given three minimum
financial up-gradations in his service, the first on completion of 8 years, the second on
completion of 16 years and the third on completion of 24 years of service. The
Commission may kindly note that the system of time bound higher grade with lesser
residency period and without the requirement of the eligibility criteria has been provided
for by many State Governments to their employees.
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Chapter XIITransfer Policy
The 5th CPC has exhaustively dealt with the issue of transfer policy in Chapter 25,
Page-215. Many of their recommendations remain unimplemented. The Department of
Personnel, the nodal department, has not issued any directive in this regard. With the
result, the transfer has remained a potent weapon in the hands of the higher echelons of
the bureaucracy to punish their subordinates. Since most of these punitive transfers are
made under cover of the undefined term “Public Interest” even the Courts and Tribunals
refuses to entertain the genuine grievances of the petitioners. For the facility of easy
reference, we quote some of the important recommendations made by the 5th CPC
concerning the Group-C & D employees:
“We have considered these demands and feel that many of the grievances of the employees can be met if their departments formulate detailed, clear and transparent transfer policies. There cannot be a uniform transfer policy for all the Central Government Departments/Organizations, as their administrative requirements differ. Departments whose personnel have a liability to serve anywhere in India have already formulated transfer policies based on the guidelines issued by the Department of Personnel and Training and cases are stated to be dealt with in the manner according to such guidelines. Departments which have not evolved any guidelines/policies on transfer should do so at the earliest so as to eliminate any possibility of arbitrariness in effecting transfers. The propositions contained in the succeeding paragraphs may be used as general guidelines for inclusion in the transfer policy to be formulated by different departments Detailed guidelines should be formulated and publicized by each department as part of a comprehensive transfer policy so as to ensure that arbitrariness in transfer is altogether eliminated and transfers are effected in as transparent a manner as possible.
As far as possible, transfer orders should be issued before the end of the academic year so that these are implemented at the end of the academic session.
Any premature transfer before completion of the prescribed tenure should be based on sound administrative grounds which should be spelt out in the transfer order itself.
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The instrument of transfer should not be allowed to be misused either by the bureaucrats themselves or by politicians in power.
An additional month’s pay over and above the existing transfer allowance should be paid by the transferring department if an employee is transferred prematurely within a period of one year of his earlier transfer.
In the case of employees in groups` and `D` recruited on a regional basis, postings should be given in the home town/home district, wherever feasible and transfers restricted within the region and zone.
No transfer of Group `D` employees from one station in another should normally be resorted to except in very special circumstances like adjustment of surplus and deficiency, promotion, exigencies of service, manual transfer etc.
Generally, transfers should not be made after a Government servant has attained an age three years less than the age of his superannuation and wherever possible a retiring Government servant should be transferred to a station of his choice, three years prior to his superannuation.”
12.2 In the light of the above recommendations of the 5th CPC, we suggest that the 6th
CPC may recommend to the Government :
a) the Group-C & D employees, taking into account the fact that their
emoluments do not even enable them to make the both ends meet, should
not be transferred at all except on their request/compassionate ground;
b) If transfer becomes necessary on promotion, or due to other administrative
exigencies, the same should be subjected to a policy evolved in the
Departmental Councils. Every department should therefore, evolve a
transfer policy on mutual agreement being reached at the respective
Departmental Council or through bilateral discussions. The Official Side
in the Counsel will place an item for discussion in the Counsel on transfer
guidelines.
c) No transfer be permitted, which is violative of such an agreement or in the
absence of such an agreement having reached in the Council. If such
transfers are made sans such an agreement, it shall be instantly cancelled
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by the Head of Department or Secretary to the Ministry concerned on
receipt of a representation for the concerned employee.
d) In case, no agreement is reached in the Departmental Council, the same
should be referred to the Standing Committee of the National Council,
JCM, whose decision is to be treated as final.
e) In respect of other category of officials, the Department of Personnel must
be asked to issue instruction in clear terms as per the above quoted
recommendation of the 5th CPC.
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Chapter XIII
Canteen facilities :
The VCPC in Chapter 121 of their report made the following recommendations :
a) The earlier scheme of grant-in-aid for initial purchases of
equipment, crockery, utensils etc. which was stopped 1.10.91 may
be restored at the rates indicated in Para-121.3 of V CPC Report.
b) Grants for replacement of crockery/utensils and furniture may be
paid triennially and for equipments and furniture quinquennially
and that quantum of these grants may be kept equal to amount of
initial grants indicated in Para-121.3 of V CPC Report (vide Para
121-4 of VCPC Report).
c) It would be highly conducive to efficiency if beverages and snacks
would be served to Government employees at their point of duty
(Para-121.5 of VCPC Report).
13.2 As per our information, none of these recommendations have been implemented.
13.3 Our view in this matter is that there is no justification for having statutory
canteens in industrial establishment governed by Factories Act where the entire
expenditure, barring the cost of provisions is met by the Govt. and the Departmental
Canteens get only grant in aid for the payment of salary of the employees and other
smaller concessions.
13.4 This is a welfare measure for which there should be no distinction between
Industrial and Non-Industrial Establishment.
13.5 We, therefore, urge upon the VI CPC to recommend to do away with the
classification of Statutory and departmental canteen and to extend the departmental
canteens the grant-in-aid and other concessions which are admissible in Statutory
Canteens.
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Annexure.
Copy of Memorandum submitted by the All India Central Government Canteen Employees and Workers Association.
Sub : Memorandum on Pay – structure, service conditions and various service benefits of the Central Government Canteen Employees – Submission of and request for hearing.
Dear Sir,
In early sixties the 2nd Pay Commission recommended that Canteen facilities should be provided for the benefit of the Government employees as a Welfare Measure. But it had taken the cause of Canteen employees casually and only recommended some policies regarding functioning of the Canteen in the Central Government Offices. Although 2nd Pay-Commission suggested guide lines in regard to proper running of the Canteens they had not taken into account the sad-plight of the Canteen employees so far as the pay structure of the Canteen employees is concerned. For example, a Bearer of a canteen was paid Rs.40 plus fixed D.R. at the rate of Rs.25/- and other allowances totaling Rs.94/- in a month which was much less in comparison to minimum of group-D pay scale in Central Government offices. The sad-plight had been continuing even after 3rd pay commission in as much when a group-D employee had been enjoying pay scale of Rs.196-232 Bearer of the canteen was paid Rs. 46/-. There after Central Government had constituted a High Power Committee to review the pay scale and service conditions of the canteen employees. The said High Power Committee made some adhoc recommendations which were given effect from 1-4-76 as mentioned below :-
1. Unskilled sweeper / wash-boy-dish cleaner)
: Revised minimum wages per month Rs.175/- (fixed) and without D.R. and other allowances.
2. Semi Skilled (Asst. Halawai, Tea/Coffeemaker and Bearer)
: Rs.219/- (fixed) and as above in column – 1.
3. Skilled Cook/Halwai)
: Rs.274/- (fixed and as Above in column 2.
4. Clerical & Supervisory Staff
: 1. Rs.275/- for matriculate (fixed) and as above in Column 2.
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A) Counter clerk/Salesman/Kitchen clerk/ coupon clerk/Reserve Clerk.
: Rs.338/- for graduate – (fixed) and as above in Column 2.
B) Cashier, Store keeper only In 2-A and more than 2A Type Canteens
: No pay scale was prescribed.
From the above it is amply clear that High Power Committee also failed to remove the anomalies and discrimination meted out to the canteen employees. For example as Sweeper in a canteen was given a fixed pay of Rs.175/- when a sweeper in Central Government Offices had drawn salary with pay scale Rs.196-232/- plus other allowances. Even after final recommendations of the said High Power Committee effective from 1-10-79 anomalies and discrimination all sorts were very much existent as mentioned below;-
1.
Sweeper / washboy/bearer/Tea/ Cofee maker)
: Scale of PayRs. 160-5-170-6-200-7-235-275.
2.
Asst. Halawai/Cook/Salesman/Clerk
: 220-5-230-6-260-EB-7-295-8-335
3.
Cashier/Store Keeper (In covering 2400 office employees or more)
: Rs. 240-6-270-8-310-10-370-12-418
Thereafter, in the wake of interim judgments delivered by the Hon’ble Supreme Court on 26.09.83 Government was compelled to give some fitment in the pay scale of Central Govt. Employees as per recommendations of 3rd pay – Commission which were also partly discriminatory. Anomalies are detailed below;-A. Coffee/Tea maker had enjoyed higher pay scale than that of Bearer, Washboy etc. High Power Committee also evaluated Coffee/Tea maker post as semiskilled. In spite of that High Power Committee suggested same scale for coffee / tea maker, bearer, Washboy, sweeper etc. The anomaly was not removed even in the changed circumstances while implementing supreme Court’s interim judgment in as much as Coffee / Tea maker, Washboy, bearer, are all given fitment in the pay scale of Rs.196-232/-. As argued herein before, Tea/Coffee maker should have given fitment in the pay-scale of Rs.225-308/-. Similarly, cook being skilled post should have got fitment in the pay scale of Rs.260-400 instead of Rs.225-308/-. Automatically being Higher Post, Halawai should have got fitment in the pay scale of Rs.330-480/- in stead of Rs.260-400/-.
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B. Clerks (Coupon, kitchen, Reserve, Account) doing the same nalture of work are being deprived from enjoying same scale of pay as enjoyed by the departmental counter parts. Clerks were fitted in the pay-scale of Rs.225-308/- instead of Rs.260-400. Consequential anomalies remained outstanding in case of next higher sports, like Asst. Manager, store-keeper, cashier, Manager, General Manager.
4th Pay Commission has not considered the case of canteen employees on the plea, that the case of canteen employees was subjudice before the Hon’ble Supreme Court of India. As a result, even after deliverance of the final judgment of the Supreme Court on 11.10.1991 pay scale of canteen employees were not reviewed to remove anomalies as discussed earlier. Naturallly anomalies regarding pay scale of Bearer, Washboy, Sweeper, Tea/Coffee maker, cook, Halawai, Clerks, Asst. Manager, Storekeeper, Manager, General Manager etc. remained outstanding.
Meanwhile implementing the Arbitration Award dated 31.1.1988 on categorization / re-classification of the work, charged and regular classified with staff of P.W.D. as modified by Delhi High Court’s judgment dated 28.1.92, Viz. C.P.W.D.’s order No. 22/9/93 – Ecx dated 20th December 1993 fixed pay scale of bearer as Rs.800 – 1150/- and that of cook as Rs.950-1500. Our Federation strongly argued before 5th
Pay Commission that pay scale in case or Bearer and cook as given C.P.W.D. employees should be extended to canteen employees keeping in view the provisions of article 14 and 16 of India Constitution w.e.f. 1-1-86 i.e. the date of effect of 4th Pay Commission who had not considered the case of Canteen employees as mentioned earlier. We have also placed in records before the 5th Pay Commission that Railway had removed the anomaly in regard to pay scale of clerks by way of giving pay scale of Rs.950-1500 to the clerks of its canteens. Taking into consideration the proper job evaluation of canteen cadres vis-à-vis Arbitration award of C.P.W.D. as well as Railway pay scale in regard to clerks making party in comparison to departmental clerks we have placed demands before the 5th Pay commission for introduction of the following Pay-scale retrospectively from 1-186.
1. Bearer / Washboy /Sweeper : Rs. 800 – 1150/-
2. Coffee / Tea maker : Rs. 825 – 1200/-
3. Clerk / Salesman / Cook / Asst. Halawai
: Rs. 950 – 1500/-
4. Halwai / Store-keeper / Asst. Manager-cum-Store keeper / Cashier etc.
: Rs. 1200 – 2040/-
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5. Manager for all type of Canteen / Accountant / Deputy General Manager
: Rs. 1400 – 2300/-
6. General Manager : Rs. 1600 – 2660/-
On the recommendations of the 5th Central Pay Commission (C.P.C.) relating to canteen staff, Government vide D.C.P. & T’s, O.M. No. 3/1 (iv)/97-Dir dated 24.8.98 granted the following revised pay scales.
Sl.No.
Designation Pre-revisedPay Scle (Rs.)
Revised PayScale approved
(Rs.)1. Safai Karmachari 750-12-870-
EB-14-9402550-55-2660-60-3200
2. Wshboy 750-12-870-EB-14-940
2550-55-2660-60-3200
3. Bearer 750-12-870-EB-14-940
2610-60-3150-65-3540
4. Tea/Coffee maker 750-12-870-EB-14-940
2610-60-3150-65-3540
5. Cook 825-15-900EB-20-1200
3050-75-3950-80-4590
6. Asst. Halwai 825-15-900EB-20-1200
3050-75-3950-80-4590
7. Clerk / Salesman 825-15-900EB-20-1200
3050-75-3950-80-4590
8. Halwai 950-20-1150-EB 25-1500
3200-85-4900
9. Cashier 950-20-1150-EB 25-1500
3200-85-4900
10. Store Keeper / Asst. Manager-cum- Store Keeper
950-20-1150-EB 25-1500
3200-85-4900
11. Accountant 1200-30-1440EB 30-1800
4000-100-6000
12. Manager Gr.II 1200-30-1440EB 30-1800
4000-100-6000
13. Deputy Gen. Manager 1200-30-1440EB 30-1800
4000-100-6000
14. General Manager 1350-30-1440-40-1800-EB-50-220
5000-150-800
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In our considered view 5th Central Pay-Commission without going into proper job evaluation had made some sorts of window dressing by way of upgrading some cadres and leaving the cases of other cadres unattended. Being aggrieved we had submitted a memorandum to the Prime Minister of India for removal of anomalies in the Pay-scales wherein we had contended the following:-
“In our memorandum to the 5th Central Pay Commission we had suggested that in the view of Arbitration Award in case of C.P.W.D. employees the Pay Scale of Bearer / Washboy/Sweeper should be up graded from Rs.750-940 to Rs.800-1150 considering the extra load of work. Since tea\coffee maker is a semi-skilled post, we had proposed for upgradation from Rs.750-940 to Rs.825-1200. The 5th C.P.C. has recommended a partial upgradation in as much as it has proposed pay scale for bearer and tea/coffee maker to the pay scale of Rs.775-1025 by throwing to the wind the proposal of upgradation of Sweeper and washboy.
Further the 5th C.P.C. has failed to appreciate the semi-skilled nature of work performed by Tea/Coffee maker and put Bearer and Tea/Coffee maker in the same bracket. Therefore proper job evaluation should be made to give pay scales of Washboy, Sweeper, Bearer and Tea/Coffee maker as suggested in our memorandum submitted before 5th C.P.C. However, we appreciate the proposed upgradation of clerks, Salesman, cook and Asst. Halwai but cannot appreciate the absolute silence of 5th C.P.C. in regard to Pay scale of cashier and Asst. Manager-cum-Storekeeper. Those posts holding higher responsibilities and more work load than that of the former should be placed in the pay scale of Rs.1200-2040 as suggested by us in our memorandum submitted to 5th C.P.C. The 5th C.P.C. is also silent about the post of Halwai considering the evaluation of job specially with reference to placement of Asst. Halwai and cook in the Pay Scale of Rs.950-1500. The Pay Scale of Halwai ought to have been Rs.1200-2040.
As per recommendation of the 5th C.P.C. the Accountant Dy. General Manager and Manager (A&B Type contains) have been placed in the Pay Scale of Rs.1320 – 2040. To the Context we submit that those posts have already been enjoying the Pay Scale of Rs.1200 – 1800 and in the face of merger of pay scales Rs.1200 – 1800 – 2040 and Rs.1320-2070 into one Pay Scale of Rs.4,000-6000 (revised), the upgradation of Pay Scale of Accountant. Dy. General Manager and Manager ( A and B Type Canteen) has become infructuous. In order to make the said upgradaiton meaningful the post of Accountant, Dy. General Manager and Manager (A&B Type Canteen) should be placed in the pre-revised pay scale of Rs.1400-2300 as proposed in our memorandum submitted before 5th C.P.C. Considering the parity principle and rationalization of cadres the Manager of C & D Type
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canteens in respect of which no recommendation has been made by 5th
C.P.C. should also be placed in the scale of Rs.1400-2300 and this upgradation would remove the inherent anomaly in the Pay-scale of Manager (C & D Type canteens) in comparison to the pay scale of Halwai being junior post and the former being supervisory post. Similarly the Pay scale of Rs.1,600 – 2,600 in respect of General Manager as proposed by 5th C.P.C. is not based on any reason or study. A glaring contrast is apparent in the report itself where the Pay of Senior Manager of Railway Canteens which is equal to the General Manager of the non-statutory central Govt. canteens has been proposed in the pay-scale of Rs.1600-2900.
Subsequently Government of India vide D.O.P. & T’s O.M. No. 3/1/iv)/97-Div© dated 21.10.1998 granted the following revised Pay Scales in respect of Canteen Cadres that had been left out earlier:-
Sl.No.
Designation Pre-revisedPay Scle (Rs.)
Revised PayScale approved
(Rs.)10. * Store Keeper / Asst.
Manager-cum- Store Keeper
950-20-1150-EB 25-1500
3200-85-4900
11. ** Manager Gr.-III 950-20-1150-EB 25-1500
3200-85-4900
* Only the last word “Store Keeper” only under lined portion is to be added.
** The complete Sl.No. 11 is to be added. In the result the pay scales in the canteen sector stood as under : Sl.No.
Designation Revised PayScale approved (Rs.)
1. Safai Karmachari 2550-55-2660-60-3200
2. Wshboy 2550-55-2660-60-3200
3. Bearer 2610-60-3150-65-3540
4. Tea/Coffee maker 2610-60-3150-65-3540
5. Cook 3050-75-3950-80-4590
6. Asst. Halwai 3050-75-3950-80-4590
7. Clerk / Salesman 3050-75-3950-80-4590
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8. Halwai 3200-85-49009. Cashier 3200-85-490010. Store Keeper / Asst. Manager-cum- Store
Keeper 3200-85-4900
11. Manager Gr.III 3200-85-490012. Accountant 4000-100-600013. Manager Gr-II 4000-100-600014. Deputy Gen. Manager 4000-100-600015. General Manager 5000-150-8000
PROPOSED PAY-SCALES BEFORE VITH CENTRAL PAY COMMISSION FOR CENTRAL GOVT. CANTEEN EMPLOYEES
A. Derivation of Minimum pay :-
Sl.No.
Designation Pay Scales as
Recommended
by 5th CPC
Proposed pay
Scales before6th CPC
AnnualIncreme
nt@ 5%
1. Safai Karmachari 2550-3200 10,000.00 500.002. Wash Boy 2550-3200 10,000.00 500.003. Bearer 2610-3540 10,330.00 520.004. Tea / Coffee maker 2610-3540 10,330.00 520.005. Cook 3050-4590 12,670.00 640.006. Asst. Halwai 3050-4590 12,670.00 640.007. Clerk / Salesman 3050-4590 12,670.00 640.008. Halwai 3200-4900 13,000.00 650.009. Cashier 3200-4900 13,000.00 650.0010. Store-keeper/ Asst.
Manager3200-4900 13,000.00 650.00
11. Manager Grade-III 4000-6000 16,000.00 800.0012. Manager Grade-II 5000-8000 20,000.00 1000.0013. Deputy General
Manager5000-8000 20,000.00 1000.00
14. Accountant 5000-8000 20,000.00 1000.0015. General Manager 5500-9000 22,000.00 1100.00
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CONFEDERATION OF CENTRAL GOVERNMENT
EMPLOYEES AND WORKERS.
31 Feroze Shah Road,New Delhi 110 001
Dated: 30 th December, 2006. President: S.K. Vyas: 98682 44035Working President: 98112 13808Secretary General:K.K.N. Kutty. 98110 48303
ToThe ChairmanSixth Central Pay CommissionVasanth KunjNew Delhi. 110 070
Dear Sir,
Sub: Submission of Memorandum on Pension and otherRetirement benefits.
We submit this memorandum on Pension and other retirement benefits on behalf of the non-gazetted employees of various departments of the Government of India, whom we represent.
We request you to kindly consider the same and afford us an opportunity to present our case before the Commission and tender evidence thereon.
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Thanking you,
Yours faithfully,
K.K.N. Kutty.Secretary General.
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MEMORANDUM ON PENSION AND OTHER RETIREMENT BENEFITS
SUBMITTED BY THE STAFF SIDE. JCM NATIONAL COUNCIL.
Chapter I.
Introduction.
The Government of India, Ministry of Finance, Department of Expenditure,
Notification No. 5/2/2006-E(IIIA) dated 5th October, 2006 in its sub para (E) of Para 2
has included the following as the terms of reference of the 6th Central Pay Commission:
“(E). To Examine the principle which should govern the structure of pension, death cum retirement gratuity, family pension and other terminal benefits having financial implication to the present and the former Central Govt. employees appointed before January, 1, 2004”
1.2 The terms of reference made to the 5th CPC in respect of pension and other
retirement benefits were as under:
“To examine with a view to having a proper pension structure including death cum retirement benefit and make recommendation relating thereto which may be desirable and feasible.”
1.3 A plain reading of the two approaches makes it clear that the present Government
does not want the 6th CPC to examine the issue with reference to evolving a proper
pension structure but should go into per se the very principles that should govern the
structure of pension itself. The said requirement imposed upon the Commission should
be looked into in the background of the new pension scheme evolved by the Govt. of
India for those who are recruited to Govt. service after 1.1.2004 and which has been
adopted by most of the State Government. It is, therefore, necessary to trace some of the
milestones in the evolution of pension as the most important social security scheme. We
hope a discussion on that will help all concerned to place the issue in its proper
perspective.
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Article 366(17) of the Constitution of our Country defines pension as under:“Pension: Pension means a pension whether contributory or not, of any kind whatsoever payable to or in respect of any person and includes retired pay so payable; a gratuity so payable and any sum or sums so payable by way of the return, with or without interest thereon or any other addition thereto, of subscription to a Provident Fund.”
1.4. The 4th CPC went into the conceptual question of pension in detail. Some of the
observation contained in their report is relevant in understanding the purport in the
background in which the Central Government employees are placed today.
Para 2.13: Part II. But the concept of ‘pension’ however old in its origin, had the latent and real desire to provide for an eventuality – known or unknown. The known eventuality was old age and probable reduction in earning power, while the unknown eventuality was disability by disease or accident or death. Its real purpose was security, even though the beginning was oblique, indiscernible and faint. But the germ of an effort to provide security ran through the provision and it is natural that it should have grown and flowered with the development of human understanding and desire to look after and provide for those who deserved it for man has constantly been seeking means by which to enhance his economic security. But the extension of the pension provision from military service to civilian public employment, resulted largely from consideration for the employees and the pressure of their organsiations. Some benevolent employer goes to the extent of regarding pensions as an absolutely indispensable complement of wages – a terminal benefit. That however, is apart from another aspect bearing on pension – the social aspect. The demographic structure of the population is changing because of the greater expectation of life. Thus, those who are no in middle age or going to be nearly twice as big as economic burden to their children as their parents are to them. The problem in such cases, has been tackled as a social obligation, including social insurance for citizens generally.”
Para 2.17: In the very nature of things, every employee, who lives long enough, reaches a stage of diminished outturn of work or what may generally be called non productive years. That may, speaking generally again, be set to be the responsibility of his employer for whom he has spent the best years of his life. In a welfare state that may also be set to be the responsibility of the Government (where he is not in his employment) and, in more modern society, it may also be set to be the responsibility of the individual. So all three namely, the employer, the Government and the employee or one or the other of them, may be expected to contribute towards the pension according to the social or administrative set up of the country or society where the individual undertakes the service but the one common feature and object of pension is to provide for the old age of the
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employee for the simple reason that time has eroded his capacity to earn and he is unable to provide for himself. In a country like ours, where we have solemnly resolved to constitute it into a “Socialist” Republic and to secure to us all social and economic justice (Preamble,) it behoves the Government to take care of its employees by providing terminal benefit like retirement pension when they become entitled to them. We may refer to the directive principle of the State Policy enshrined in Article 39(a) of the Constitution that the State shall in particular direct its policy towards securing that the citizens have the right to an “adequate means of livelihood”…….If, such a citizen is an employee of the State, is it out of ordinary, and not as of a Constitutional directive, that the State should appreciate its duty to provide for him by means of a pension and/or other terminal benefits? (emphasis supplied) …The concept of pension, therefore carries within it the germ of certainty, periodicity, and “adequacy”. ……Ours is a Socialist State and the fundamental aim of Social security is to give individuals and families the confidence that their level of living and quality of life will not, in so far as, be greatly eroded by any social or economic eventuality, including the age of superannuation or oncoming disability/
1.5 The concept of pension has been explained more precisely in the Encyclopaedia
of Social Sciences, Vol. 11 as under-
“administrators and civic leaders interested in the improvement of Government services formulated the idea of pension as an efficiency device necessary for the orderly and humane elimination of superannuated and disabled employees no longer able to function efficiently for the proper operation of the system of promotions, for the attraction of better type of employees and for the improvement of working morale”
1.6 On the doctrinal approach the Encyclopaedia further states that:
“A doctrine recently advanced and more far reaching in its implications regard the Public Service as the logical pioneer in the meeting of the old age problem as it affects wage earner in modern society. This doctrine considers a pension as a compensation paid to the employee for the gradual destruction of his wage earning capacity in the course of his work . Retirement being a proper charge against the employees, entire period of active service, the employer should make contribution towards the employees eventual retirement during each year of service of the employee, in a manner similar to that in which he annually sets aside a reserve against depreciation and obsolescence of his plant and machinery. Pensions, according to this doctrine, are an absolutely indispensable compliment of wages.”
1.7 In para 2.20 the Commission has observed
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“but even though the Government service pension scheme in our country is non
contributory, it has been contended again by way of doctrinal approach, that this
is not really so and that some allowance is made for the missing contribution
while determining the salaries”
1.8 The Supreme Court in their Landmark Judgment ( which has been approvingly
quoted by the 5th Central Pay Commission in D.S. Nakra and other Vs. Union of India
(AIR 1983 SC 130) held that Pension is neither a bounty nor a matter of grace depending
upon the sweet will of the employer. It is not an ex-gratia payment but payment for past
services rendered. It is a social welfare measure rendering socio economic justice to
those who in the hey-days of their life ceaselessly toiled for their employer on an
assurance that in their old age they would not be left in lurch. The 5 th Central Pay
Commission paying due respect to the above observation of the Honourable Apex Court
in Para 127.6 of its report has stated that the pension is the statutory, inalienable, legally
enforceable right of employees which has been earned by the sweat of their brow. As
such the pension should be fixed, revised, modified and changed in ways not entirely
dissimilarly to the salaries granted to serving employees.
1.9 While examining the goals that a pension scheme should seek to sub-serve, the
Honourable Apex Court held that “a pension scheme consistent with available resources
must provide that the pensioner would be able to live:
(i) free from want, with decency, independence and self respect, and(ii) at a standard equivalent at the pre retirement level”The Court observed that we owe it to the Pensioners that they live not merely exist.
1.10 From the above observation of the Supreme Court it is clear that pension is
payable by the employer i.e the Central Govt. to its retired employees which is their
statutory and legally enforceable right from which they cannot be deprived. That the
amount of pension must be enough to enable the pensioner to live free from want with
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decency, independence and self respect at a standard equivalent at the pre retirement
level.
1.11 The new pension scheme imposed upon the new entrant is a Defined Contribution
scheme under which the pension would not be a fixed amount expressed in terms of % of
salaries last drawn but will be variable amount dependent upon the vagaries of stock
market in which contribution to the fund would be invested and is at the risk of the
employee.
1.12 There is no provision for minimum guaranteed pension, family pension, retiring
pension on premature retirement in the new contributory pension introduced by the Govt.
of India and made compulsory in respect of a section of employees entering service on or
after 1.1.2004.
1.13 The contributory scheme presently introduced and made applicable on the
employees through an executive fiat is also in fact the withdrawal of the avowed
doctrinal position the Govt. has taken years back that pension is a compensation paid to
the employee for the gradual destruction of his wage earning capacity in the course of his
work. It is also in fact a punishment meted out to the employees for the financial
profligacy the Government had indulged in the past by not creating the pension fund as a
reserve to meet the future but eventual liability. The Fifth Pay Commission has
recognized the fact that the Governmental pension scheme, though appears to be non
contributory is in fact not so due to the very principle adopted in the determination of
their wages. They have determined the wages on the assumption that pension would be
the liability of the Government and therefore the employees entering service on or after
1.1.2004 are legally not required to make any contribution towards the pension fund. In
any case, the Government cannot and should not operate two distinctly different pension
schemes for its employees for it is violative of all cannons of justice and article 14 and 16
of the Constitution. The contributory pension scheme can at best be only optional as it
has been so devised in the case employees other than Government servants . The Defined
Benefit scheme has been in vogue for more than four decades, brought in by the Govt.
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themselves, should continue to be applicable to all civilian employees of the Government
of India. The failure on the part of the Govt. to maintain the required pension fund
reserves is the root cause for the perceived strain on the economy. Even though in
quantum terms, the pension related outflow has increased, it could be seen that the ratio
of such expenditure with reference to the total revenue expenditure of the Government
had been on decrease over the years.
1.14 We may, in this connection, solicit the attention of the Commission to the
observation in the famous article of Hector Inductivo “Privately managed old age pension
schemes: Theory and reality” of the Chilean experience on Pension reforms, where he
cautions all Goverments as under:-
“It is, therefore, important for Governments to know the real implications and complications of the private pension system before adopting it as an alternative to their own existing schemes, lest they jump from the frying pan into fire”
1.15 We may also bring to the notice of the Commission that even in the United States,
it is only under 401 (k) (the voluntary additional pension scheme) that such an investment
option is available and not under 301 (k) which is the mandatory pension scheme, where
benefits are defined.
1.16 We have submitted a detailed Note to the Official side on the pernicious effect of
the new contributory pension scheme as desired by them during the discussion at the
Standing Committee meetings, which is reproduced below for the consideration of the
Commission.
Staff Side Note on New Pension Scheme:Ref: Minutes of the discussion the StaffSide had on 20 Point charter of demands
On 15.02.2006
“Central Govt. employees like employees of any other sector were initially covered by the Contributory Provident Fund Scheme under which each employee was to subscribe 8.33% of his basic pay to the said fund and the Govt. contribute equal amount each month. Separate account for each of the employee had been maintained.
1.2 The Pension scheme presently in vogue was initially introduced as a substitute to CPF in 1920s. On 1.4.1950, the Government made it mandatory for all Central Govt. employees to switch over to the new scheme. In so far as
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Railway employees are concerned, the new pension scheme was offered to them from 1.4.1957..
1.3 The accumulated balance (including the interest) in the employee’s CPF account was transferred to a Public Account. The Govt. was to continue to contribute, as is the case with any other employer, to this Public Fund in respect of all employees covered by the non contributory pension scheme. In other words the public Account meant for pension corpus fund was to be financed wholly by the Government of India. Not only the Govt. did not contribute the required amount to the Pension Public Account, but they even took away the amount credited to the said account from the CPF. The fiscal stress said to be experiencing today on account of the increased pension liability is a direct result of the non contribution by the Government to the Public Account, ought to have maintained for the purpose of pension distribution.
1.4 ……. It should therefore be the Government’s responsibility to contribute towards this Public Account, for it is an obligation cast upon it by the successive Pay Commissions, and raise its rate of contribution if found necessary to meet the pension liabilities. It is also left to rebuild its corpus to the Govt. and to take the decision whether the funds should be invested in Govt. securities or stock market. Whatever be the decision the accumulations in the said account should be sufficient enough to meet the increasing pension liabilities in respect of the employees. The employees are entitled to get the pension from the said Public account equivalent to what is determined by the Pay Commission and in respect of the existing employees what has been decided by the 5th CPC.
1.5 The amount collected by the Government in respect of the employees who entered service after 1.1.2004 towards contribution to the Pension fund should be credited to the General Provident Fund account of these employees and be provided with interest as per the existing rate.
2. It could be seen that the high level expert group set up by the Government before introducing the new contributory pension scheme has recognized that:
(a) Pension is neither a bounty nor a matter of grace depending upon the sweet will of the employer and that it creates a vested interest.
(b) Pensions is not an ex-gratia payment but is a payment for the past services rendered
(c) It is a social welfare measure rendering socio-economic justice to those who in the heyday of their life have toiled ceaselessly for the employer on an assurance that in their old age they would not be left in the lurch.
2.1 The said group has observed in their report ( Para 4.23) that to fulfill the objectives of the Pension scheme, the proposed scheme has to ensure that the pension would be able to live free from want, with decency, independence and self respect, with due regard to the financial resources of the Govt.
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2.2…..2.3 The Group recommended a two tier hybrid scheme whrerein the first tier is intended to primarily act as a social security scheme with a reward for past service but with a matching contribution from employee as well as the Govt. rate of contribution being 10% of wages. Further the Group recommended that the first tier pension would be a defined benefit at 50% of the average emoluments over the last 36 months of the working career of the employee. Additionally the scheme will provide for commutation of pensions and the existing benefit of family pension will also be met from the Pension fund created for the purpose. It was this scheme which was to be made applicable to those who entered service on or after 1.1.2004. When definite benefit scheme is being operated in United States of America, Japan, Canada, Denmark, Germany, France why it cannot be sustainable in our country is beyond comprehension.
2.4.The Second tier recommended by the Group was to be a defined contribution plan which would be voluntary, saving oriented scheme with limited Government contribution not exceeding 5% of pay +DA of the employee opting for it whereas the employee’s contribution may be any amount.
2.5 The contribution scheme introduced by the Govt. should therefore be an additional social security option for the employees and be made purely voluntary in character. The new scheme that has been imposed on the new entrants to Government service ( recruited after 1.1.2004) is not acceptable, as the same is subject to the vagaries of the stock market.
3.Government employees who entered service after 1.1.2004 are entitled to the wages determined by the 5th CPC on par with the employee who were recruited prior to that date. The wage structure determined by the V CPC is on the premise that pension liability shall be that of the Government and therefore, no contribution for pension is payable by them. 4. The Standing Committee on Finance in their report on the Pension Fund Regulatory and Development Authority Bill, 2005 had examined the Pension model adopted in Chile which was akin to what it is now introduced by the Govt
.4.2 It was criticized for its high administrative cost, lack of portfolio choice, high number of switch-overs, inability to provide enough incentives to cover low income employees etc. It has also been noted that private individual accounts had proved to be more expensive and high fees and commissions charged at flat rate on accounts had provided to be highly regressive, and resulted in the monopolization of pension funds and did not bring about the desired coverage.
4.3.In South Africa frauds covering millions of dollars by the Pension Fund Administrators was detected recently”
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1.17 We, therefore, request the Commission to advise the Government to withdraw the
new contributory pension scheme, which has so far not received the parliamentary
sanction to continue. We are also of the considered opinion that the Commission should
obtain a clarification from the Government to enable it to recommend improvement in the
pensionary benefits presently available to the Government employees.
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Chapter IIPension entitlement
Since the fifth Central Pay Commission had comprehensively dealt with the entire
pension structure, there is hardly any need to go into the whole question of defining
various terms and narrating the historical process through which the present scheme has
been evolved. All that we have to say is that the existing structure has to be improved
upon. We will, therefore, confine ourselves to suggesting the improvements, wherever
necessary and justified.
A .Emoluments for Pensions :
The 4th and 5th CPC without indicating the rationale had recommended that basic
pay only be counted as emoluments for computation of Pension. We suggest that the
components for purpose of calculation of pension should consist of:
(a) basic pay(b) any special pay or personal pay, deputation duty allowance(c) dearness allowance(d) Non-practicing allowances in respect of Doctors(e) 75% of the running allowed in respect of railway running staff retired
after 4.12.88.
Special Pay, Personal Pay and deputation pay have been included under F.R. as
part of Pay and therefore, there was no justification or rationale in exclusion of these for
the purpose of computation of emoluments.
The D.A which is meant to restore the purchasing power of pay is only an
addition to the pay. In many countries, there is no system of DA. Periodically the Pay is
revised taking into account the rise in the cost of living. Here also there is a system of
merging the dearness allowance as dearness pay for the purposes of including it as a part
of pay for pensionary benefit. In respect of Gratuity already, the DA is being included
with Pay and therefore, there is all the reason for the inclusion of DA in emoluments.
B .Average emoluments:
Average emoluments for the purposes of Computation of Pension are the old
legacy of the former Colonial Rulers [CSR]. It was devised with a purpose to enhance
amount of emoluments taking into account the officiating pay in higher post and the
deputation duty allowance received by the employees during the period of last 36 months.
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Therefore, no such necessity exists for taking average emoluments for 10 months, if it is
not advantageous to the employees concerned. We suggest that the emoluments for the
purpose of computation of pension should be the last pay drawn for full month by the
employee or 10 months average emoluments, if that happens to be higher. This system of
10 months average has proved to be disadvantageous in respect of employees, who retire
within 9 months after a revised Pay structure recommended by the CPC is implemented.
This is so because the last 10 months would involve a portion of period when pay was
drawn in the pre-revised pay scales. The anomaly in respect of post 1996 retirees was
rectified by notionally extending the Revised Pay Scales and its fitment in respect of the
months which fell before 1.1.96. Similar anomaly in respect of post 1986 retirees during
the period 1.1.86 to 30.9.86 though recognized by the Govt., has not been rectified.
Therefore, we reiterate that the pay drawn in the last month should be the basis for
computation of all the pensionary benefit.
C. Qualifying service for full pension
The qualifying service for full pension is presently 33 years. We suggest that the
qualifying service for full pension may be fixed at 30 years. This suggestion is being
made on the basis of the following factors :
(a) When the age of superannuation was raised to 58 years the qualifying service was also raised to 33 years. At that time the maximum age for entry in the Central Civil Service was 21 years. At present the maximum age prescribed for entry into Central Civil Service has been raised to 25 years.
(b) In the case of SC/ST communities, the entry age is normally relaxed by 3 to 5 years.
(c) There are other services, where entry age has been prescribed even above 28 years.
Due to the above stipulations, the total service rendered in respect of many
employees falls short of 33 years resulting in grant of less than full pension.
D ..Rate of Pension :
The Pension at present is being determined @50% of emoluments paid to the
Govt. servant who has completed 33 years of qualifying service when he retires. The
ideal should be to grant as pension the emoluments to which the Govt. servant is entitled
for last month of his service. However, we propose that full pension after rendering 30
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years of qualified service on Superannuation should be 60% of the emoluments of the last
month or the 10 month average whichever is higher.
As the age advances, the pensioner is enfeebled and becomes more susceptible to
various geriatric diseases. He will have to incur additional expenses towards his upkeep,
social obligation, medical treatment etc. We suggest that the quantum of the pension
should be revised to 65% of the last pay drawn when one attains the age of 65 and by
another 10% at age of 75.
E. Pension entitlement.
Minimum qualifying service needed to entitlement of pension is presently 10
years. We suggest that the period may be reduced from 10 to 5 years. Our above
suggestion is based on the provisions of the CPF Rules 1962 and EPF Act 1952 under
which employer’s contribution is paid to the employee on completion of 5 years. Since
the pension scheme has substituted the earlier scheme of CPF, the entitlement for pension
should also commence on completion of 5 years.
F. Minimum Pension :
The need for prescribing a minimum pension was always felt by the Govt.
Accordingly the following rates of minimum pension have been prescribed from time to
time:
Date effective from Minimum pension1.1.1964 Rs.25=001.3.70 Rs.40=001.3.80 Rs.60=001.4.82 Rs.150=00
(inclusive of relief)1.4.83 Rs.160=00 -do-1.1.86 Rs.375=00
No where has the Govt. indicated or explained the basis on which the above rates
have been prescribed. The IV CPC vide Para-10.18 (Page 60 Part-II of their report)
quantified the minimum pension at Rs.300/-:
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No logical explanation was provided to the prescription of Rs.300/- p.m. by the
IV CPC . The Govt. raised the minimum pension to Rs.375/- without offering again the
basis for such quantification. The only inference can be that the Govt. thought it fit to
give 50% of the minimum wage as the minimum pension, as the full pension is computed
at the rate of 50% of the emoluments.
It is, however, to be noted that no Govt. servant retires at the entry point
emoluments. Therefore, to compute minimum pension as a percentage of the entry point
emoluments is fallacious. In order to become entitled to full pension one has to serve for
30 years and the employees in Group D has a service career spanning a period of over 40
years.
The concept of “Minimum Wage” needs no elucidation. Once the minimum wage
is quantified that becomes the irreducible amount for sustaining one in the society.
Various special needs of a pensioner at the evening of his life make it all the more
necessary that he gets at least the minimum amount required to sustain himself.
Therefore, the minimum pension will have to be the minimum wage. Minimum wage
suggested by us, for reasons, amply expressed in our Memorandum Part I is Rs.10000/-.
Accordingly, we suggest minimum pension also at Rs.10,000/-.
G. Dearness Compensation :
Dearness Compensation for pensioners should be at the same rates suggested by
us in Part I of our memorandum in respect of serving employees.
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Chapter IIIOther Pensions.
Family Pension :
At present the family pension is given at the rate of 30% of Pay last drawn.
However, family pension shall be equal to 50% (60% as proposed by us) of pay last
drawn or twice the rates given above, whichever is less and the amount so admissible
shall be payable from the date following the date of death of the Govt. servant for a
period of 7 years or for a period upto the date on which the deceased Govt. servant would
have attained the age of 67 years had he survived.
3.2 The above rule is applicable to a Govt. servant who is not governed by Workman
Compensation Act, 1923, if he dies while in service, after having rendered not less than 7
years of continuous service.
3.3 The prescribed period for which the family pension is payable is as under (1) In the case of a widow or widower, upto the date of death or remarriage whichever is earlier.
(2) In the case of a son until he attains the age of 25 years.(3) In the case of an unmarried daughter until she attains the age of 25
years or until she gets married, whichever is earlier.(4) The widowed/divorceed daughter.
3.4 We suggest as under :
(a) The period of 7 years may be raised to 10 years. The period of 7 years is inadequate for stabilization of a family after the death of a Govt. Servant.
(b) The quantum of family pension for the period of 10 years should be equal to the pension the Govt. servant was entitled as per rules.
(c) After the expiry of the above 10 years period, the family pension may be reduced to 75%.
(d) The family pension shall not be less than the minimum pension of Rs.10,000/- either during first 10 years or thereafter.
(e) In the case of a son, the family pension may be allowed upto the age of 28 years now obtaining. This is suggested because the recruitment age has been raised in certain cases to 28 years. In the case of unmarried daughter, the age limit may be done away with.
(f) The concession extended to a disabled mentally retarded child to receive family pension until his/her death is subject to the condition that the said disability should have manifested before the
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death of Govt. employee. We suggest that this condition may be removed.
3.5 A Government servant retired on medical invalidation after rendering less than 10
years of service (5 years as per our proposal) gets no pension. We suggest that he should
be granted full notional pension (i.e., 60% of his emoluments)/minimum pension,
whichever is higher. On death of such a Govt. servant his family should get :
a) Full notional pension/minimum pension during first 10 years after his death.
b) 75% of the above or minimum pension whichever is higher, thereafter.
3.6 Extra Ordinary Pension:
The 5th CPC in para 135.17 of its report has recommended that regulation of
compensation or disabilities categorized under (b) and (c) follows .
“II – Cases of disability (100%) resulting in discharge from service”“Normal pension and gratuity admissible under CCS (Pension) Rules, 1972, without insisting on the requirement of minimum service of ten years plus Disability Pension equal to the normal Family Pension, i.e., 30%(as per our proposal 40%) of the basic pay”
The Department of Pension & Pensioners Welfare, while issuing orders on
acceptance of the recommendation – vide OM No.45/22/97-P&PW(C) dated
3.2.2000 (incorporated in Appendix-3 of Swamy`s Pension compilation) the well
meaning recommendation has been altered as follows :-
“III – Disability Pension – for cases covered under categories `B` and `C`:
3.7 Extra Ordinary Family Pension :
“(1)_Normal pension and gratuity admissible under the CCS (Pension) Rules,
1972-Plus-Disability Pension equal to 30% of basic pay for 100% disability.”
This has resulted in a Group `D` employee with 6 years` service, who has been
invalidated (with 45% disability) and boarded out of service not getting the
minimum pension towards `Service element`. This injustice is required to be set
right.
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Chapter IVRetirement benefits: Gratuity and commutation of Pension
4.1 Gratuity :
Retirement gratuity is paid at ¼ of basic pay for each completed six monthly
period of qualifying service subject to a maximum of 16.5 times of the
emoluments. There is also a monetary ceiling of Rs.2.5 lakhs. This is applicable
to all Govt. Servants who retire on completion of 5 years of service. However, if a
person dies in harness his family is granted the gratuity at certain prescribed rates:
We suggest that
the gratuity may be calculated on the basis of 25 effective days against 30
days in a month. We make this suggestion because the Govt. servant
should not be paid at a rate lesser than what is admissible under the
Gratuity Act.
The ceiling of 16.5 months should also be removed. This is because under
existing rules gratuity is reduced in the case of a Govt. employee who has put in
less than 33 years of service. Therefore, it is but logical that for a service span
exceeding 33 years, the gratuity should be higher.
4.2 Commutation and its Restoration :
Central Govt. employees are permitted to commute upto 40% of their basic
pension. Those who are absorbed by PSU, the percentage of permissible
commutation is 100%. Our proposal is that permissible percentage for
commutation may be raised to 50% for all. Earlier when the pension quantum was
50% of average pay, the maximum permissible limit of commutation was 50% of
the basic pension. This was reduced to 33.1/3% when the pension formula was
revised to 30/80 of the average emoluments. The V CPC revised it to 40%. Now
when the pension quantum has been restored to 50%, the permissible
commutation percentage should also be raised to 50%.
In the light of Supreme Court decision, commuted value of pension is restored on
completion of 15 years or on reaching 73 years of age whichever is later. Most of
the State Govts. are restoring full pension after 12 years or on reaching 70 years
of age. We, therefore, propose that full pension be restored after 12 years, or on
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reaching 70 Years of age whichever is earlier. From the table given below it will
be seen that the entire commuted value gets repaid within 12 years.
Sl.No.
Details Age next birth day =61 years
1 Commutation factor 9.812 Amount commuted Rs.1003 Commuted value received Rs 11,7724 Amount recovered in 12 years Rs. 14,4005 Amount recovered in 15 years Rs. 18,0006 Excess recovered in 12 years Rs. 2,6287 Excess recovered in 15 years Rs. 6,228
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Chapter V:Medicare :
Nursing Homes/All Private Hospitals/Diagnostic Centres to cater for the CGHS
beneficiaries should be increased in such a way that they will be nearer to the residence
cluster of the beneficiaries. While selecting great care should be taken that no beneficiary
is required to travel more than 2.5 KM to obtain treatment. In Delhi, the recent approval
for hospitals has been done without keeping the extent of beneficiaries` residence
localities. Some areas have been completely forgotten and some points have been given
more than one referrals. This appears well on paper and satisfies the ministry but in
practical terms it is more a punishment for the beneficiaries.
5.2 It is necessary to quote the observations of Justice Shetty Commission on cash
payments in lieu of medical assistance papra-19.120,”the payment of maximum amount
every month as medical allowance in lieu of medical benefits is not a solution to the
problem but an escape from it. Any such allowance will be only a monetary benefit and it
is not realty a medical benefit.
5.3 CGHS : We wish to invite attention of SCPC to the recommendation made by the
FCPC as detailed in Para-140.11 of their report regarding extension of CGHS.
Unfortunately, the well intentioned recommendation has remained still as
recommendation only. Under some plea or the other, there had been practically no
expansion, whatsoever in this regard. A number of proposals had been forwarded to the
Government by the All India Central Confederation of Pensioner Associations, Delhi but
have been kept in cold storage. The VI CPC is requested to reiterate this important
recommendation, suggesting opening of new CGHS dispensaries as per prescribed norms
securing clearance from Planning Commission, wherever necessary.
5.4 The MOH&FW (DOH) has issued an order vide, OM No.S-11011/46/95-
CGHS/DII/CGHS (2) dated 1.8.1996, according to which P&T Pensioners, who were not
participating in CGHS while in service may not be extended the facility. This had to be
challenged in CATs by P&T Pensioners who have won the cases. But the Government
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has filed Writ Petitions in High Courts challenging the decisions of CATs. The Kerala
High Court at Ernakulam however, in its judgement dated 31-7-2006 (In WP No.15420
of 2005 (S) has upheld the order issued by CAT Ernakulam. As the P&T pensioners are
unnecessarily driven to Courts for getting CGHS benefits without any justification,
whatsoever, the SCPC is requested to make a specific recommendation to the effect that
P&T pensioners should not be discriminated against in this regard, which is nothing but
simple harassment for no fault of theirs.
5.5 Pensioners of Coffee Board and Kendriya Vidyalaya Sanghatan are governed by
CCS (Pension) Rules, 1972. While KVS employees get CGHS benefit while in service,
the same has been denied to them after retirement. The OM No.22/1/90-P&PW (K) dated
17.12.1990 of the DOP&PW clearly lays down in Para-1.1 thereof that all Central
Government pensioners except Railway Pensioners and Armed Forces Pensioners) who
were eligible for CGHS facilities while in service are eligible for availing CGHS
facilities after retirement. In the case of Coffee Board employees, they get the benefit of
CS(MA) Rules,`44 while in service (through AMAs, with monetary limit on amount of
reimbursement) they do not get any medical facility after retirement. Even the Fixed
Medical Allowance , which they were getting all along after it`s introduction has been
suddenly withdrawn with effect from April, 2006. This is sheer injustice! (KVSRA OA
113/2003Doj. 30.12.2003CAT Hyderabad)
Note: The OM No. 22-1/90/P&PW (K) dated 17.12.1990 quoted in CAT
Bangalore Bench case i.e. Nanjundiah vs. Addl. Directore CGHS Bangalore is
actually the Ministry of Finance letter O.M.No. 12-165/90-Coord dated 21.1.1991
enclosing the OM of the Department of P &PW. CGHS pension brochure
finalized in consultation with the Department of health.
PSU Absorbee pensioners have also been denied CGHS facilities after one third
of their Pension (commuted) has been restored. As per Supreme Court’s judgment, they
have to be extended all the benefits as are admissible to central government pensioners.
No doubt, CATs have decided the issue in favour of the pensioner applicants. But the
government has filed Writ Petitions in the High Courts. Justice may be done to these
pensioners (PCh/12/04-7) (PCh/12/05-10) (OA:146/2005:cat Ba`lore: DoJ:22-11-2005-R.
Viswanatha Rao –Vs.- Uol).
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5.6 Till such time, expansion of CGHS takes place, the Government may permit the
pensioners to avail In-door medical facilities at such of those private hospitals as are
recognized by Government of India to its serving employees under the CS(MA) Rules,
1944 and permit reimbursement of medical expenses in full by the departments to which
the pensioners belonged to before retirement.
5.7 The practice of obtaining declarations from CGHS beneficiaries to the effect that
expenses incurred or charged by recognized private hospitals in connection with
diagnostic procedures or hospitalization in excess of the package rates during periods
beyond the currency period of the Memorandum of Agreement with the hospitals by the
CGHS authorities should be discontinued. It is the duty of the CGHS authorities to either
renew or enter into fresh Memorandum of Agreement before expiry of the date of
currency of agreement. The beneficiaries, particularly the pensioners, should not be
penalized by making them pay the difference in charges after obtaining declarations as
mentioned.
5.8 P&T Dispensaries: (Redesignated as `Postal Dispensaries`-vide D.O. Posts No.2-
5/2000/Medical dated 10-10-2000).
1. As no hospitalization facilities are available to beneficiaries attached to
Postal Dispensaries, all of them should be converted into CGHS dispensaries. Till
then, CS(MA) Rules, 1944 benefit should be extended to the beneficiaries for In-
door treatment.
2. FCPC, in Para-14-0-15 of its report, has recommended upgradation of
P&T dispensaries to the level of CGHS or otherwise to allow P&T pensioners to
join CGHS like any other CG pensioners. (PC/8/06-237).
(c)CS(MA) Rules, 1944: Should be extended to pensioners living in non-CGHS
stations or areas not covered by CGHS. As recommended by FCPC, vide para-
140.18 of their report, benefit of CS(MA) Rules, 1944 should be extended to
pensioners in non-CGHS areas at least to the extent of full reimbursement of
expenses incurred for hospitalization in a Government hospital or hospitals
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recognized under CS(MA) Rules, `44 for serving employees or those recognized
by State Governments for such purposes for their employees. To cite examples, in
the city of MYSORE, a number of Hospitals have been recognized under CS
(MA) Rules. `44 for serving central government employees. But pensioners can
not avail the benefit merely because there is no CGHS dispensary there. Similarly,
in UDUPI though the work-famous “Kasturba Hospital” is recognized under CS
(MA) Rules,`44 for serving employees, the pensioners do not get the benefit
merely because there is no CGHS dispensary there and CS (MA) Rules are not
applicable to them. Several cases of claims for reimbursement of medical
expenses incurred by pensioners living in non-CGHS areas have been decided in
favour of pensioners by the CATs and even the High Court of Gujarath at
Ahmedabad. SCPC is requested to make suitable recommendation in this regard
in order that even if CGHS dispensaries are not opened, for whatever reasons they
may be, the C.G pensioners may avail medical in-patient facilities (in hospitals
recognized under CS(MA) Rules,`44 for serving employees) and get
reimbursement of expenses from the departments to which they belonged.
(d) It is a fact that ESIC medical scheme caters for 35 million beneficiaries in the
private factory employment sector. If the ESI system with a network of 144
hospitals 42 Annexes, 1400 dispensaries and tie up with 2041 private medical
practitioners besides with a large number of super specialty hospitals can provide
Medicare, why should not CGHS/CSMA cater for the Medicare needs of 52 lakhs
of employees, 38 lakhs of pensions spread all over the country like ESIC
beneficiaries? Sixth Pay Commission may kindly examine the feasibility of
improving present CGHS/CSMA formats to ensure medicare to 90 lakhs of
Central Govt. employees/ex employees. There is absolutely no need to scout for
alternate method. The recommendation of the 5th CPC of suitably amending
CS(MA) rules for providing indoor medical attention to a very small segment of
Central Govt. pensioners residing in non CGHS areas should not pose any
insurmountable hurdles. It is unfortunate that the nodal Ministry, viz. Ministry of
Health and Family welfare, has accepted the need for medicare to 60 plus retired
personnel that they should not be deprived of the medicare and the judiciary have
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taken cognizance of this principle, there should be no hesitation in amending the
CS(MA) for providing the retired employees limited indoor attention.
5.9 Fixed Medical Allowance (FMA) :
i) The present FMA of Rs.100/- p.m. should be increased to Rs.500/- p.m.
ii) The FMA should count for purposes of Dearness Relief so that its value will
not get eroded due to inflation.
iii) FMA is not being paid to KVS pensioners. KVS is an autonomous
organization fully financed by the Department of Education under the
Ministry of Human Resources Development, Government of India. While in
service, the staff and teachers are getting Medicare depending upon the
location in CGHS area or under CS (MA) Rules dispensation, after retirement
they are denied both CGHS facilities as well as FMA-a case of sheer
unreasonable treatment to the ex-employees of KVS.
iv) Similarly, though “Tea Board” pensioners have been granted FMA, vide OM
No.23/Est/Med/94 dated 11.8.2000 of Tea Board, Calcutta, pensioners of
Coffee Board which is also under the Ministry of Commerce and Industry,
Department of Commerce under Government of India have now been denied
the same though they were getting it earlier. (PC/10/00-197).
v) FMA should be sanctioned observing uniform distance-criterion from the
dispensaries for CGHS/RELHS/ECHS beneficiaries.
vi) The FMA should be sanctioned to all pensioners who are not members of
CGHS./RELHS/ECHS irrespective of their place of residence. The
jurisdiction of dispensary should be uniform for all schemes viz. 2.5 kms as
laid down by Ernakulam High Court decision dated 22.11.2002. It may also
be noted that the Punjab Pensioners are getting FMA at the rate of Rs. 300
p.m. Assam pensioners at Rs. 200, Arunachal Pensioners, at 200, Chandigarh
Pensioners at Rs. 250 and Meghalaya Pensioners at Rs. 200.
5.10. RELHS-97 :
a) Beneficiaries of the “Retired Employees Liberalised Health Scheme”
in the Railways do not have the facility of availing medical services in
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private recognized hospitals and diagnostic centres nearest to their
places of residence. While serving employees do not feel its necessity
as they will normally be residing in government quarters, which have
the Railway hospitals nearby, the retired employees are living in far
flung areas of cities. To cite an example, only two private hospitals
have been recognized in Bangalore with an area of 368 Sq.Kms. While
20.6% of Central Government pensioners, other than defence
pensioners, have 36 private recognized hospitals and 15 private
recognized diagnostic centres under the CGHS, 27.8% of Railway
pensioners have only 2 private recognized hospitals. The hardship,
particularly for the old and infirm pensioners residing in far flung
areas of cities in reaching railway hospitals may very well be
imagined. It is requested that the SCPC may kindly recommend that
more private hospitals and Diagnostic centres may be recognized for
RELHS beneficiaries, so that no beneficiary may have to travel a
distance of more than 8 kms in emergencies.
b) The other difficulty is regarding non-availability of credit facilities for
the Railway pensioners in the private recognized hospitals.
Beneficiaries of the CGHS have this facility. It is requested that
Railway pensioners who are beneficiaries of RELHS may also be
extended facilities like CGHS beneficiaries. Even in the case of Ex-
Service men contributory health scheme ECHS in April, 2002 for
medicare of Ex-servicemen and their families, it is laid down “if
hospitalization is required the hospitals will be paid directly by the
organiasations”.
c) There is yet another problem for Railway pensioners. Patients with
cardiac problems are referred to the Railways Hospital at the H.Qrs
Station, even though very good private hospitals with excellent
facilities are available at the same station. To cite an example, in
Bangalore, Railway pensioners are being referred to the Railway
Hospital at Chennai even in emergencies It is a well known fact that
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cardiac emergencies have to be attended within the “golden hour” i.e.
three to six hours. The policy has to change if the intention of the
Govt. is really to render the required medical assistance.
d) This scheme should also be kept permanently open like all other
medicare scheme available to other Central Govt. pensioners.
e) The rate of contribution should be 0.5% of salary/pension of the
beneficiaries and 1.5% by the User departments.
f) Pay ward facilities should be allowed to persons attending patients in
Railway hospitals.
g) Diet charges should not be recovered from all pensioners and family
pensioners in Railway Hospitals.
h) RELHS 90 should be an open ended scheme like CGHS, ECHS, ESIC
etc.
i) The existing Railway pensions in the old scheme of contributory
health scheme should also receive Medicare if need be by reference to
referral hospital and should not be denied treatment on the plea that
they are not in RELHS 97
j) Presently the beneficiaries RELHS 97 are denied the facility of
treatment in Private Hospital en in case of emergencies. Locking
period should be removed if need be. The Railways can examine the
feasibility of adopting hospitals already approved by CGHS etc.
schemes. “Locking period” conditions smack of Commercial
approach.
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Chapter VIMiscellaneous
6.1 Casual LabourContingency Paid Employees :
At present Casual Labour/contingency Paid employees are allowed to count their
service towards pension @ 50% of the total period falling between acquiring the
temporary status and regularization and full service thereafter.
6.2 The above benefit is also subject to further condition that such employee should
be regularized an absorbed against a regular post. The operation of this condition is so
harsh that there are many cases in which the entire service is rendered non pensionable
because the employee may be retired/retrenched/die before such regularization.
6.3 We, therefore, propose that the 50% of service before acquiring temporary status
or full service after acquiring temporary status irrespective of whether he was regularized
or not should count towards pension.
6.4 The employee have to remain for long durations without any regularization and
are deprived many amenities which a regular employee gets. Not to treat their service
pensionable for a considerable period leave them with very meager pension and in some
cases with no pension. This is against the principle of social justice and therefore our
above suggestion should be considered by the V Central Pay Commission.
6.5 Interruption causing forfeiture of service for pension:
The existing provisos defining interruptions in service causing forfeiture of past
service for purposes of pension are quite antiquated, unnecessary and unreasonably harsh
which should be removed from the statute book. In formative years when British
authorities were recruiting Indians in their administrative services, it was noticed that
during sowing and harvesting seasons, a large number of employees used to go back to
the fields without any regular leave etc. As a deterrent, the rules regarding interruption in
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service had been legislated then. Since most of the employees have now lost their rural
roots, such frequent and recurring interruptions are no longer there. Interruption as and
when rarely caused is due to reasons mostly beyond the control of an employee.
6.6 We, therefore, propose that instead of treating interruption to cause an automatic
forfeiture of past service for pensions, it should be dealt with under CCA Rules. The
provision causing forfeiture of service for pensioner purposes on account of interruption
may, therefore, be deleted.
6.7 Parity in pension to pre-2006 retirees.
This issue has been delt with in detail by the 5th CPC in para 137.7 to 137.16 in its
report. The 5th CPC has given a specific formula for evolving parity to pre-1986 retirees.
We propose that a formula may be suggested by the 6th CPC in respect of all pre-2006
retirees which would obviate any necessity for hiking the pension of the pre-2006 retirees
to 50% of the minimum of the revised wages of the post held by them as complete parity
with post 2006-retiree will have been ensured.
6.8 Extra ordinary Family Pension. Without reproducing the existing rates for Extra
Ordinary family pension, we submit that these rates are not only inadequate but are quite
cumbersome. Different rates have been prescribed if the widow is childless or having
children. Distinction has also been made in respect of Govt. servant holding a
pensionable/non-pensionable post. The rationalized approach would be to grant the extra-
ordinary family pension at the rate of emoluments last drawn till the widow/widower
either dies or remarries or the child otherwise becomes ineligible as per the existing rules.
Had the Govt. servant not met his death while discharging his duties he would have not
only got the pay, he would also have earned increment/promotion. Therefore, to pay by
way of extra ordinary family pension at the rate suggested by us would at least ensure
that there is no loss in the family income on the death of the Govt. Servant. Moreover,
our above suggestion is also to contra-distinguish the case of death of a Govt. servant in
harness and that of death while performing duties.
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6.9 Housing : Central government employees in occupation of Govt. quarters on
retirement are constrained to hire private accommodation at exorbitant and prohibitive
rental. They are per force to spend a sizeable portion of the pension on rent alone. While
in services, though they are entitled to get house building advance etc., most of them are
unable to avail the facility and construct house for the salary income they earn is
incapable of making the both ends meet. It is, therefore, necessary that a provision for
reserving a percentage of the number of residential units constructed by the State/Central
Housing Boards and Corporations, for outright purchase of allotment on instalment basis
to pensioners. We, therefore, suggest that 10% of the total units constructed by the State
Housing Boards, Central Housing Corporations etc. to be reserved for pensioners.
6.10 This apart, dormitory type single room tenements with common dining hall,
library, cultural centre, auditorium, basic medical facility etc. may be constructed at the
outskirts of the cities and allotted to pensioners on payment of a reasonable amount.
6.11 Until the above suggestions accepted and implemented, HRA may be granted to
the Pensioners on the same rates as is given to serving employees.
6.12 Travel Concession :
Senior citizens who have attained 65 years of age are given 30% concession in
rail fare at present. We suggest that retired Govt. servant may be allowed the facility of
travel concession once in 4 years to any place in India.
6.13 Income tax Exemption
The 5th CPC vide para 167.12 has recommended that pension should be net of tax
and the Department of pension should pay lump sum amount to the Department of
Revenue. Pension being a social security measure and is abysmally low even to meet the
old age requirement of the pension, it is exempted from the levy of tax in many countries.
We request that the 6th CPC should strongly recommend to the Government to exempt the
pension from the purview of taxation.
6.14 Resignation to be treated as retirement in certain cases.
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Resignation is tendered by as Government Servant in varying circumstances. It is
felt, therefore, that resignation need not always result in forfeiture of past services (Rule
26 of Pension Rules and denial of pension. An objective view is required to be taken by
the appointing authority in the case of all those who tender resignation after completion
of 20 years of service. Such resignation may be treated as voluntary retirement and
benefits extended accordingly. In this connection, we may cite the following decisions
of the judiciary,
1. CAT Mumbai full bench O.A.No. 1384/1985 decided on 8.7.19972. CAT Ahmedabad O.A.No. 498/2002 decided on 18.3.20043. CAT Jabalpur O.S. 623/1991 decided on 13.10.1995. 4. Bombay High Court WP No. 615/1996 and W.P.No. 2586/1997 deided on 28.2.2002
6.15 Even 5th CPC in para 133.79 had recommended that terminal gratuity at difference
rates be paid to those who resign after putting in certain years of service and resignation
after 20 years of service may be treated as voluntary retirement and pension may be paid
accordingly. We, therefore, request the Commission that the above recommendation may
be reiterated.
6.16 Additional pension for addl. Service:
The 5th CPC in para 133.65 of the report has recommended that additional pension
at the rate of 0.5% of the emoluments for each year of additional service in excess of 33
years be paid to the Central Govt. Employees. We request that the Commission may
kindly reiterate this recommendation, as the Govt. had not accepted the 5 th CPC
suggestion in this regard.
6.17 Uniform Rate of family pension.
The 5th CPC in para 134.7 of its report has recommended that the family pension
may be made at a uniform rate of 30% of pay for all categories of employees. In respect
of pre 1986 retirees the Government applied the varying rates and then added difference
between 30% of pay and add what is admissible at varying rates while upgrading the
family pension. This procedure of fixation was neither according to any rules nor in
conformity with the recommendation of the 5th CPC. The Sixth CPC may kindly look into
this matter and recommend that the family pension be fixed at the rate of 30% of pay in
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respect of pre-1986 retirees before it is updated. We also request that the family pension
may be determined at the revised rate of 40% of pay.
6.18 Ex-gratia payment to State contributory PF retirees.
The Govt. has not granted the ex gratia payment as recommended by the 5th CPC
in para 137.43 to those who had retired voluntarily or who were retired on invalidation,
though they had completed 20 years of qualifying service. The Sixth pay Commission
may kindly consider their case and to extend them the payment of ex gratia.
6.19 There are certain employees who are in the CPF Scheme but could not opt for the
pension scheme in the year 1986. These are mostly women employees employed in
Atomic Energy Commission who could not make up their mind as to whether they could
render the requisite number of service necessary for grant of full pension. They may now
be allowed to revise their option.
6.20 Interim relief to employed Family pensioners: Interim relief was not granted to
the Family pensions who were employees, even though they do get the Dearness relief.
The dearness relief as per F.R. 50-A of pension rules was earlier not admissible to those
who are employed but still in receipt of family pension. The 6th Central pay Commission
may kindly look into this matter and recommend that the employees who are in receipt of
family pension are also paid the interim relief on family pension as well as and when it is
sanctioned.
6.21 Pension Act. 1871 (Act 23 of 1871)
This Act was promulgated on 8th August, 1871. The CCS (Pension Rules) 1972
was notified in under the powers vested to the president under proviso to Article 309 of
the Constitution and not under the above Act of 1871.
6.22 This Act is a feudal left over of the former Colonial Power. The Gajendra Gadkar
Law Commission had advised the government of India in 1972 to change the Pension Act
1871, but nothing was done. S/s V.N. Gadgil and Parulekar the then M.Ps moved a
substitute bill in the year 1981 in the budget session of the Parliament as a replacement of
the Pension Act 1871. This was discussed on 16th and 30th of April of 1981. Sri
Venkatasubbiah, the then Minister of State Home Affairs gave an assurance of bringing
in an amendment to the Pension Act of 1871. Neither the Monitoring Committee of
Parliament on Assurances nor the Government has taken any steps in revising this Acr.
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The following sections of the said Act violate the Constitution of India:-
a) Section 4: No Civil Court shall entertain any suit relating to any pension.b) Section 6: Shall entertain such suit only on a receipt of certificate from a
Collector that the case may be tried, but the court shall not any order by which the liability of the pension to the pension is affected.
The following sections go against the CCS (Pension) Rules, 1972:-
a) Section 5: The claim for pension to be made to the collector/Deputy Commissioner.
b) Section 8:- The pension payments to be made by the Collector/Deputy Commissioner.
c) Section 15:- confer powers to the Central Government to made rules only to provide for nominations under Section 12A.
Besides this certain sections like Section 7, 9 and 13 have become obsolete in the
light of the above we request the 6th CPC to suomotto examine this aspect and
make suitable recommendations to the Government for repeal and revision of the
said Act.
6.21 Pension adalats
The system of Pension Adalat was introduced initially by Department of Pension
and Pensioners Welfare and later on adopted by Railways, Defence and P& T
Departments. The V CPC in para 139.17 had recommended that this system is very
effective in finalizing disputed cases of pensions and should be introduced in all the
departments. These adalats should also function for settling the cases of field formations
and meet atleast once in quarter. The representatives of the Pensioners Association
should be allowed to present the cases of the concerned pensioner who may not be
conversant with the rules. The above recommendation which were not mandatory has not
been implemented. We therefore request the 6th Pay Commission that it should be made
mandatory on all the ministries and departments of India to conduct these adalats
periodically and without fail. We also suggest that these adalats may be conducted at
different levels with the following frequency:-
i) Divisional Level Once in 3 monthsii) Zonal Regional Level Once in 6 monthsiii) Head Quarters Level Once in a yeariv) Minister of State in DOPT Level Once in 2 years
6.22 Administrative Tribunals.
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There is a government move to amend the Administrative Tribunal Act to provide
for the abolition of tribunals and to withdraw the power to examine contempt against
implementation of its orders. We request the 6th CPC to advise the government not to go
ahead with this move.
6.23 Anomalies Committee
Anomalies do creep in when recommendations of any pay commission are
implemented. For this purpose there is already a system of constituting joint anomaly
committee to look into the anomalies arising after implementation of recommendation of
commission for serving employees under the forum of JCM. Such anomalies in respect of
pensions have not been resolved because no such anomaly committee has been
constituted in respect of pensioners. To illustrate this we give below the following true
instances of unresolved anomalies:-
i) Clarificatory order no. 45/86/97- P&PW (A) (Pt.) dated 11.5.2001
This OM was as follows:
“Pension of all pensioners irrespective of their retirement shall not be less
than 50% of the minimum pay w.e.f. 1.1.1996 of the post held by the
pensioner – shall mean that the pension of all pensioners irrespective of
their date of retirement shall not be less than 50% of the corresponding
scale as on 1.1.96 of the scale of pay held by the pensioner at the time of
superannuation/retirement”
The clarificatory order cited above had been challenged by some affected
pensioners in the Delhi High Court which directed that the above
clarificatory order may be quashed. The issue was taken by the
government in the Supreme Court which dismissed the Special Leave
Petition. In spite of this the Department of Pension and Pensioners
Welfare has not receded its order dated 11.5.2001.
ii) Anomaly in pension of those who retired between 1.1.86 to 30.9.86 :
The above category of pensioners have been put into a disadvantageous
position vis-à-vis their counter part i.e pre- 1986 pensioners with varying
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monetary loss as because in the latter’s case the pension were determined on the
basis of notional pay being treated as average emolument where as in the case of
former retirees the average emoluments were determined on the basis of 10
monthly average which included the period in which they had drawn the pre-
revised pay.
6.24 We therefore urge upon the 6th Pay Commission not only to recommend
rectification of above and such other anomalies details of which will be submitted by us
later on. But they should also recommend setting up of anomaly committee for
pensioners in the forum SCOVA and also in forum of JCM
6.25 Date of Effect
We have requested the Commission in Part I of our memorandum that the
recommendation of the Commission be implemented with effect from 1.1.06 both in
respect of Pay Scales and allowances. Accordingly we request that the revised
pensionary benefit may also be given effect to from 1.01.2006
6.26 There are certain matters which we have not included in this memorandum
relating to past pensioners. These issues have been dealt with in the memorandum
submitted by the Steering Committee of Pensioners organizations.
O0o
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I N D E X
Chapter No. Name of the Chapter Page Number
I Introduction 02-10
II Pension entitlement 11-14
III Other pension 15-16
IV Retirement benefits – Gratuity and computation of pension
17-18
V Medicare 19-25
VI Miscellaneous 26-33
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