Central Government considering not to form Pay Commission in future

No new commission may be formed in future for increasing salaries of central government employees, a senior Finance Ministry official told The Sen Times on condition of anonymity.

“The government is going to take a policy decision in this regard,” official told our reporters after issuing the 7th Pay Commission notification.

Pay Commissions makes much impact on the fiscal deficit, since pay commission awards come once in 10 years, the two to three years subsequent to each award tend to be fiscally stressful for the central government. States also suffered major blows to their finances for implementation of pay commission report, he added.

Presenting an idea about an alternative arrangement, he said that the 7th Pay Commission Chairman Justice A K Mathur had earlier told The Financial Express in an interview, “The government should review the salary of central government employees every year looking into the data available to it and based on the price index.”

The 7th Pay Commission recommended that the pay matrix may be reviewed periodically without waiting for the long period of ten years. It can be reviewed and revised on the basis of the Aykroyd formula which takes into consideration the changes prices of the commodities that constitute a common man’s basket, which the Labour Bureau at Shimla reviews periodically.

The Pay Commission also suggested that this should be made the basis for revision of that pay matrix periodically without waiting for another Pay Commission.

So, it will not be necessary to form a new pay Commission after every 10 years for central government employees and pensioners and whether any change is required regarding pay and allowances would be made considering inflation.

Accordingly, the central government is to follow this proposal of the Pay Commission and to discontinue the practice of appointing pay commissions in future to suggest salary structure and other perks for all central government employees and pensioners, the official gave his views.

The official said there would be an officer who would submit a report of inflation to the Finance Minister Arun Jaitley every three years.

He added some changes regarding pay and allowance would be made considering inflation.

General Secretary R3 CHQ Com.Giri Raj Singh at CONFEDERATION NATIONAL CONFERENCE

Circle Secretary Shri K.Ramesh, Divisional President  Shri K.Velu
 Divisional Secretary. A.Salivaganan,   
Divisional Treasure  Shri. Pragadeswaran  and Organizing Sectary Shri T. Shanmugam with our General Secretary R3 CHQ

Seventh CPC - Form of Option

Who can give MACP Exercise option - Between 1st day of January, 2016 and the Date of Notification ( ie. 25/07/2016)

To Exercise option under the provisos to rule 5 with in three months of the Notification of Revised Pay Rule 2016 is issued.

shall be exercised in writing in the form appended to these rules so as to reach the authority mentioned in sub-rule (2) within three months of the date of notification of Revised Pay Rule 2016.

5. Drawal of pay in the revised pay structure.– Save as otherwise provided in these rules, a Government servant shall draw pay in the Level in the revised pay structure applicable to the post to which he is appointed: 

Provided that a Government servant may elect to continue to draw pay in the existing pay structure until the date on which he earns his next or any subsequent increment in the existing pay structure or until he vacates his post or ceases to draw pay in the existing pay structure:

Provided further that in cases where a Government servant has been placed in a higher grade pay or scale between 1st day of January, 2016 and the date of notification of these rules on account of promotion or upgradation, the Government servant may elect to switch over to the revised pay structure from the date of such promotion or upgradation, as the case may be.

Explanation 1.- The option to retain the existing pay structure under the provisos to this rule shall be admissible only in respect of one existing Pay Band and Grade Pay or scale.

Explanation 2.– The aforesaid option shall not be admissible to any person appointed to a post for the first time in Government service or by transfer from another post on or after the 1st day of January, 2016, and he shall be allowed pay only in the revised pay structure.

Explanation 3.– Where a Government servant exercises the option under the provisos to this rule to retain the existing pay structure of a post held by him in an officiating capacity on a regular basis for the purpose of regulation of pay in that pay structure under Fundamental Rule 22, or under any other rule or order applicable to that post, his substantive pay shall be substantive pay which he would have drawn had he retained the existing pay structure in respect of the permanent post on which he holds a lien or would have held a lien had his lien not been suspended or the pay of the officiating post which has acquired the character of substantive pay in accordance with any order for the time being in force, whichever is higher.

 Click to know : Revised Pay Rule