NFAEE

 Annexure I

Subject	Reference in 7 CPC	Recommendation of 7 CPC	Our Suggestions/comments
Determination of Minimum Pay	4.2.7 & 4.2.8	Based on the Aykroyd formula, the minimum pay is recommended	·         Pay Commission revised the Akkroyed formula to recommend lesser pay a Minimum Pay. They came out with their own terminology on various facts and figures    ·         See Annexure II for detailed explanation and illustration
New Pay Structure:	5.1.13	Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.
Rationalisation of Pay Structure	5.1.19 Table 4	Rationalisation has been done to ensure that the quantum of jump on promotion as the responsibility and accountability increases	Though it is irrational to maintain different Index at different rates Level 6 onwards higher index rate is granted.  (Para5.1.19)Justification for ‘index of rationalisation’ states that, “the role, responsibility and accountability increases at each step in the hierarchy”.   See detailed note in Annexure II
Pay Matrix	5.1.21 5.1.25 Table 5	Pay matrix comprises two dimensions. It has horizontal range in which each level corresponds to a functional role in the hierarchy The vertical range for each level denotes pay progression within that level.	In the Pay Matrix the multiple factor has not been used uniformly. To ensure 3% as increment the stages has not been maintained. There are stages less that 3% in various level For promotion, one increment in teh lower and then equal or next stage is recommended, thus there are certain cases without any promotional benefit pay shall be fixed with nominal increment
Date of Effect		01.01.2016	If it is not possible to get the Date of effect form 01.01.2014 as NJCA demanded, corresponding weightage should be ensured by demanding fitment benefit of 25% which is equivalent to the DA after 01.01.2014.
Minimum Pay	5.1.26	Rs.18,000 per month.	Based on the correction in the calculation new minimum pay should be derived
Maximum Pay:		Rs 2, 25,000 per month for Apex Scale and Rs 2, 50,000 per month for Cabinet Secretary and others presently at the same pay level.	Maximum pay should be fixed based on the fitment factor, which should be uniformly applied and the amount should be rounded in 500.
Ratio of lowest pay to highest pay			As the NJCA demanded
Fitment	5.1.27	Recommended fitment factor as 2.57	Revised Fitment Factor should be derived based on the new Minimum Pay.
Pay Fixation in the New Pay	5.1.28	Multiplying the basic pay (pay in Pay band + Grade Pay) by a factor of 2.57. The figure so arrived as is to be located in the new Pay matrix, in the level that corresponds to the employees Grade Pay, except in cases where the CPC recommended change in existing Grade Pay.	Multiplying the basic pay (pay in Pay band + Grade Pay) by the new Multiple Factor based on the new Minimum Pay and then adding a fitment benefit equal to the DA from 01.01.2014.
Annual Increment:	5.1.38	The rate of annual increment is being retained at 3 percent.	On proper examination of the Matrix will reveal the above as false promise  e.g.  3% of 18000 = 540 after first annual increment the pay should have been Rs.18540 where as the employee will get Rs.18500 as per the Matrix. That means the annual increment is granted @ of 2.77%. Increment rate should be 5%
Benefit on Promotion	5.1.52	Recommended one increment in the lower level and then to fix the pay in the higher level at equal or next stage.	Promotion from Level 2 to 3, Level 6 to 7, 7 to 8, etc. only one increment in the lower level will be granted. It will be lesser than the earlier pay fixation on promotion under FR 22 (a). Two increments should ensure on promotion.
Benchmark for promotion	5.1.44	Performance benchmarks for Promotion as well as for MACP have been made more stringent from “Good” to “Very Good”.	Performance bench mark should be revert back in the case of Promotion as well as in the case of MACP
Modified Assured Career Progression (MACP):	5.1.44	Recommended to continue the status quo as far as concerned in MACP by recommending pay hierarchy instead of grade hierarchy. The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service. No other changes in MACP recommended.	Should extend MACP on Grade Hierarchy Proposal to stop annual increment in case the bench mark for promotion or MACP attained should be withdrawn.
Headquarters/ Field Parity:	7.1.4 (b) 7.1.4 (j)	Parity between field and headquarters staff recommended for similar functionaries’ e.g Assistants and Stenos. Recommended to non functional upgradation of Section Office only for one level from level 8 to level 9 To bring parity in Assistant and Head Quarters and Field, recommended to bring down the pay of Assistant at Head Quarters to Grade Pay 4200 (level 6) Recommended to withdraw the non functional upgradation extended to the UDC of Head Quarters	Parity should be ensured by retaining the higher pay at the Head Quarters to filed level also of assistants and other cadres. Withdraw the recommendation of functional upgration of section officers and UDC
Cadre Review:		Systemic change in the process of Cadre Review for Group A officers recommended.	Ensure Cadre Review for Group C & B employees also once in 5 years.
Allowances:	8.2.6	The Commission has recommended abolishing 52 out of 196 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.	The recommendation should be reviewed and modified. The following  general nature Allowances should be reinstated and enhanced.
Cash Handling Allowance	8.10.9	Recommended to abolish	Should continue to the Cashiers handling cash and should be increased by 225%
Family Planning Allowance	8.17.48	Recommended to abolish citing the fact that the most of the benefits related children viz., CEA, Maternity Leave, LTC, etc are available for two children only	FPA should be retained and should be extended to all those employees eligible @ the rate 225% of the highest of the existing of FPA.
House Rent Allowance:	8.7.15	Recommended to 24%, 16%, 8% of the Basic Pay for Class X, Y, Z cities respectively.	It should by 30%, 20%, 10%  for X, Y, Z cities respectively
Launch Campaign Allowance/Space Technology	8.17.67	Recommended to abolish	Should be retain and should enhance by 50%
National Holiday Allowance	8.6.9	Recommended to increase by 50% to the non gazetted employees who are rostered to work on a “ National Holiday”	It should be extended to the all non gazetted employees who are rostered to work on a “ National Holiday” in all Departments
Nursing Allowance	8.17.83	Recommended not to change in the existing rate	Should be enhanced by 50%
Overtime Allowance	8.17.97	Recommended to abolish except for operational industrial employees who are governed by statutory provision Further recommended that in case Government decides to continue with OTA for the staff for which it is not a statutory requirement, then the rates of OTA should be increased by 50% from their current level.	Current level of OTA for those employees who are not covered by statutory provisions are regulated based on the pay structure as on 31.12.1985. Therefore Government should increase the rate of OTA for those employees who are not covered by statutory provisions are regulated based on the new pay structure and OTA rate prevails in the Department.
Advances:		All non-interest bearing Advances have been abolished. Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs 25 lakhs from the present Rs 7.5 lakhs.	It appear that the commission is prejudiced to ‘Abolish’ all interest free advances Best example for that is abolition of - LTC advance -   which provide employees to purchase the tickets for the journey and produce the proof within 10 days of availing LTC advance. By abolition of LTC advance especially the low paid employees will not be able to avail the facilities, schemes like visit to Andaman – Nichobar, North East, Sri Nagar, etc. The recommendation should be rejected
Interest Free Advances	9.1.2	Recommended to abolish Bicycle Advance, Warm clothing Advance, Advance of Pay on Transfer, Advance of TA on Tour/Transfer/Retirement, Advance of TA to the family of a deceased government employees, Advance on LTC, Advance of Leave Salary, Advance in connection with medical Treatment, Festival Advance, Advance in the event of natural calamity, etc.	Should retain the Interest free advances such as Bicycle Advance, Advance of Pay on Transfer, Advance of TA on Tour/ Transfer/Retirement, Advance of TA to the family of a deceased government employees, Advance on LTC, Advance of Leave Salary, Advance in connection with medical Treatment, Festival Advance, Advance in the event of natural calamity
Interest bearing Advances	9.15	Recommended to abolish Moto Car Advance and Motorcycle/Scooter/Moped Advance	Should retain both Advances as the repaying formula for Interest bearing advance for the Department and financial institutions are entirely different.
Casual Leave	9.2.3	Recommended to maintain the status quo	Should enhance to 12 for civilian employees and 15 to industrial workers
Child Care Leave	9.2.9	Recommended that CCL should be granted at 100% of the salary for the first 365 days and 80% of the salary for the next 365 days	The recommendation should be rejected.
Hospital Leave, Sick Leave & Special Disability Leave	9.2.23 9.2.30 9.2.34 9.2.37	Recommended Hospital Leave, Special Disability Leave and Sick Leave should be subsumed in a new Leave named Work Related Illness and Injury Leave Point 3.: Full Pay & Allowances for the 6 months immediately following hospitalisation and Half Pay only for 12 months beyond that  Point 5: No EL or Half Pay Leave will be credited during the period that employees is on WRIIL	Point 3:  Should be modified such a way that Full Pay and allowances should be given to the entire period of WRIIL. Point 5: Should be deleted.
Central Government Employees Group Insurance Scheme (CGEGIS): The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:	9.3.36	Present Proposed Level of Employee Monthly Deduction  (Rs) Insurance Amount  (Rs) Monthly Deduction  (Rs) Insurance Amount  (Rs) 10 and above 120 1,20,000 5000 50,00,000 6 to 9 60 60,000 2500 25,00,000 1 to 5 30 30,000 1500 15,00,000	The interest rate to those employees contribute as per the rate proposed should be on par with the Bank interest on Fixed Deposit Should consider the impact on take home salary as the increase is 42 to 50 times so accordingly it may be revised if necessary
GPF	9.4.4	Recommended to continue the status quo for the employees recruited prior to 01.01.2004	One time relaxation for switching over to the employees continuing in CPF to GPF in the S&T Department as in the case of Scientific Officers.
Medical Facilities:	9.5.15	Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended. Meanwhile, for the benefit of pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis.  All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.	CGHS Scheme should continue and strengthened. Insurance scheme should not be adopted
Pension:		The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement. The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix. This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent. In the case of defence forces personnel this amount will include Military Service Pay as admissible. Fifty percent of the total amount so arrived at shall be the new pension. An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension. The pensioner will get the higher of the two.
Gratuity:		Enhancement in the ceiling of gratuity from the existing Rs10 lakh to Rs20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.	Gratuity should be restricted for 33 years and the full service period should be considered for calculating the Gratuity.
Commutation of Pension & its restoration		Recommended to status quo to be maintained.	Commuted pension may be restored on completion of 10 years
New Pension System:		The Commission received many grievances relating to NPS. It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.	New Pension Scheme should be scraped. At the same time without prejudice to our demand to scrap the NPS we should consider the recommendations of the Pay Commission and should make comments to improve NPS such as: ensure 50% of the last drawn pay as minimum pension should  be ensured Compensation to the Losses attained by the NPS beneficiary who joined in the scheme during 2004 – 2011 To make operational the Tier II accounts under NPS. Tax Treatment under NPS Introduction of Gratuity and Leave Encashment to those employees in NPS, etc
Superannuation:		Chairman and Dr. Rathin Roy, Member, recommend the age of superannuation for all CAPF personnel should be 60 years uniformly. Shri Vivek Rae, Member, has not agreed with this recommendation and has endorsed the stand of the Ministry of Home Affairs

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