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Sunday 15 May 2016

Empowered Committee for Running allowance in 7th Pay Commission Pay Structure

Federation is for continuing the pay elements 30% and 55% of pay which are in vogue since the time of 4th CPC as far as running allowance is concerned without any dilution even when 7th CPC Pay Matrix levels are to be implemented.

 Empowered Committee for Running allowance in 7th Pay Commission Pay Structure

Railway Board has constituted Empowered Committee for Running Allowance in 7th Pay Commission Pay Structure – NFIR urges Railway Board to finalise Running Allowance related issues after due negotiations with Railway Federations soon

NFIR 
National Federation of Indian Railwaymen
No.IV/RSAC/Conf./Part VI
Dated: 11/05/2016

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub: Empowered Committee for Running Allowance in the 7th CPC Pay Structure-reg.
Ref: Railway Board’s order No. ERB-U2016/23/1 dated 05/05/2016.

The Railway Board has since issued an order dated 05/05/2016 constituting Empowered Committee for Running Allowance in the 7th CPC Pay Structure. According to Board’s letter, ED/PC-I, Railway Board shall be the Convener of the Empowered Committee and five EDs of different directorates shall function as its members. In this connection, NFIR desires to convey that pursuant to bipartite agreement reached on the report of the Running Allowances Committee, 1980, the running allowance eligibility criteria, pay elements for various poses, ALK etc., were decided by the Railway Ministry in the year 1981.

With the implementation of 6th CPC pay structure (Pay Band & Grade Pay), a number of aberrations have however cropped up and all those issues were raised by NFIR in different fora. The issues were also discussed in the Fast Track Committee meetings, besides PNM and DC/JCM meetings, but unfortunately, there has been no finality till now. In the full Board meeting chaired by CRB on 7th February 2014 and in the Fast Track Committee meetings, it was decided that the running staff issues need to be dealt in the joint committee and accordingly joint committee was constituted.

Although the joint committee met twice, the issues remained unresolved. Now that the Railway Board has constituted Empowered Committee in the wake of 7th CPC report presently under consideration of the Government, the NFIR urges upon the Railway Board that the issues which are pending before the Joint Committee should be got finalized quickly. Thereafter there should be formal meetings with the Federations for discussing the new issues which may arise consequent upon the decision for implementation of VIIth CPC Pay Matrix levels. In this context, the Federation wants to remind the Railway Board that the pay elements 30% and 55% of pay which are in vogue since the time of 4th CPC should be continued without any dilution even when 7th CPC Pay Matrix levels are to be implemented. Federation hopes that the Railway Board would take note of earlier agreements reached with the Federations for ensuring that the same are not deviated.

Yours faithfully 
(Dr.M.Raghavaiah)
General Secretary
Download NFIR letter No.IV/RSAC/Conf./Part VI dated 11.05.2016 
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7th Pay Commission – 29% Central Government Employees to Retire in 10 years

“The Commission notes that losing experienced high-level personnel entails unquantifiable costs as new recruits will require training and on-the-job skills”.

7th Pay Commission – 29% Central Government Employees to Retire in 10 years – The textiles ministry has the highest proportion of employees (75%) in the 50-60 age group, followed by the coal (64%) and urban development (62%) ministries.

One of the chief problems in reforming India’s bureaucracy is that it is a powerful pressure group, which does not like to see a drop in its influence or a drop in its numbers. Now, a rare opportunity presents itself.

Of 3.3 million civilian central-government employees at the beginning of April 1, 2014, nearly one million (around 29%) are in the age group of 50-60 years, according to data released by the 7th Pay Commission recently.

“This is a ready pointer to the number of retirements that would take place in the next ten years,” said the report, running into nearly 900 pages. “The Commission notes that losing experienced high-level personnel entails unquantifiable costs as new recruits will require training and on-the-job skills. At the same time it presents ministries/departments the opportunity to align their personnel requirement in line with their current and future challenges.”

That observation is in line with a frequently mentioned need for administrative reform, which could include bringing in professionals from outside government, introducing performance-linked salaries and paying higher salaries to fewer employees.

“Successive governments have been guilty of turning a blind eye to administrative reform without which economic reform will not have its desired effect,” former cabinet secretary KM Chandrasekhar wrote in a column in The Economic Times. “The greatest obstacle to ease of doing business is administrative incapacity and, to this, governments traditionally pay no heed. It is time we brought administrative reform to the top of the governmental agenda and create systems that ensure efficiency and accountability.”

IndiaSpend’s analysis of the staffing of government departments and numbers of those facing retirement reveals the opportunities that exist in each.

The Pay Commission decides salaries and incentives for central-government employees. The Commission, which is constituted once in every 10 years, is also considered to be the base to decide salaries for state government employees.


“A central-government employee is defined as all persons in the civil services of the Central Government or holding civil posts under that government and paid salaries out of the Consolidated Fund of India. This, however, does not include such persons appointed to serve Parliament or the Union Judiciary,” the report said.

Here are some departments that have a heavy concentration of employees in the 50-60 age group:

Ministries With Experienced Personnel


Ministry Personnel (overall) Personnel (ages 50-60) Personnel aged 50-60 as % of all personnel
Textiles 3,095 2,328 75
Coal 305 196 64
Urban Development 30,665 18,962 62
Petroleum & Natural Gas 230 138 60
Science & Technology 6,680 3,787 57
Heavy Industry 246 138 56
New & Renewable Energy 187 97 52
AYUSH 164 84 51
Power 1,044 523 50


The textiles ministry has the highest proportion of employees (75%) in the 50-60 age group, followed by the coal (64%) and urban development (62%) ministries.

Among central-government employees, 22.23% are in the 20-30 age group, 22.28% in the 30-40 age group and 26.1% people in the 40-50 age group.

Age Profile of Central Government Employees
  •     50 to 60 years – 947,586
  •     40 to 50 years – 860,708
  •     30 to 40 years – 734,689
  •     20 to 30 years – 732,902
  •     Others – 21,537

While the sanctioned strength of central-government employees is more than four million, no more than 3.3 million positions are filled, indicating a vacancy of 744,000 positions or 18%.

Indian Railways – one of the world’s largest employers with more than 1.3 million – has the most vacant posts, 235,000 followed by the defence ministry (civil) at 187,000, finance ministry (over 80,000) and home ministry (over 69,000).

The government recruited 857,764 people between 2006 and 2014 – an annual recruitment of only 100,000 people every year.

During the years 2012 to 2017, India’s labour force is projected to increase by 44.6 million, which is an average annual increase of more than 8.9 million. “This suggests that the Central Government is at best a marginal source for employment generation,” said the Pay Commission report.

The recommendations of the 7th Pay Commission are likely to cost the exchequer more than Rs 1 lakh crore ($15 billion) in financial year 2016-17, an increase of 23% over existing salaries and allowances.

The 7th Pay Commission has recommended a minimum pay of Rs 18,000 per month — for peons, clerks and some police head constables — and an annual increment of 3%. It has also recommended doubling the ceiling on gratuity (lump sum paid based on years of service) to Rs 20 lakh from the current Rs 10 lakh, enhanced medical insurance and pension schemes.

Source: Business Standard
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7th Pay Commission recommended that Family Planning Allowance should be abolished.

7th CPC has recommended for abolition of Family Planning Allowance since the level of awareness regarding appropriate family size has gone up among the government servants. 7th CPC is of the view that many benefits relates to children, viz., Children Education Allowance, Maternity Leave, LTC, etc., are available now.

7th Pay Commission famil planning Allowance Abolished


7th Pay Commission recommended that Family Planning Allowance should be abolished.


7th Pay Commission has proposed for abolishing Family Planning Allowance. Analysis and Recommendations of 7th Pay Commission on FPA is as follows:

Family Planning Allowance (FPA) is granted to Central Government employees as an encouragement to adhere to small family norms. The existing rates are as under:

Grade Pay Family Planning Allowance
1300-2400
210
2800
250
4200
400
4600
450
4800
500
5400
550
6600
650
7600
750
8700
800
8900
900
>10,000
1000

There are demands to make it equal to one increment. Representations have also been received requesting that the allowance should be double for those employees who adopt family planning norms after just one child.

Analysis and Recommendations

The Commission recognizes the fact that most of the benefits related to children, viz., Children Education Allowance, Maternity Leave, LTC, etc., are available for two children only. Moreover the level of awareness regarding appropriate family size has also gone up among the government servants. Hence, a separate allowance aimed towards population control is not required now. Accordingly, it is recommended that Family Planning Allowance should be abolished.
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