7CPC highlights

• Fitment factor 2.57 contains –Dearness Allowance from 01/07/2015 – 119% + DA to become due on    01/01/2016 approximately estimated to be 6%. = 2.25 + .32 = 2.57
• The real increase in basic works out to 14.28% (7000 X 2.25 = 15750; 18000-15750=2250; The net   increase is only 14.28%) There is no benefit of Interim Relief; no benefit of       DA Merger; no benefit like    Grade pay; 14.28%   increase in 10 years is nothing which may be equal to two   installments of DA.  It is not at comparable with 43% for 5 years (given to      State employees  of A.P. & Telangana) and 25% for 5 years given to Bank employees and revisions take place in    public sector for every 5 years;
•  Reduction in rates of HRA: The CPC instead of considering the demand for payment of HRA on Basic+DA, removed add-ons like NPA, MSP etc. Further, reduced the HRA Rates in the name of rationalisation. HRA reduced to 24%, 16% and 8% for X,Y,Z cities
•  MACP : NO CHANGE – 10, 20, 30 Conditions made more stringent.The bench mark for getting MACP Up-gradation recommended to enhance from “Good” TO “Very Good”.
• Withholding annual increments : CPC recommends “who do not meet the laid down criterion should not be allowed to earn future increments. The CPC proposes withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the 20 years of their service.
•  The CPC recommends a permanent Remuneration Authority to revise the pay structure periodically, at more regular intervals, say annually ….”  In the backdrop of annual revisions, the present system of biannual revision of DA could also be dispensed with. (para 5.1.49)
• In para 3.83 all the recommendation are negative in nature especially items No.iv, v, vii and viii – to separate the expenditure of wage bill of Gramin Dak Sevaks, suggesting to devise uniform guidelines / model contract agreements and clear guidelines for the jobs that can be and should be contracted out,  to utilise services of high level retiring personnel on contract basis – instead of recruiting personnel even in jobs of permanent nature:
•  As many as 52 allowances are abolished / as many as 36 have been subsumed in another existing allowances in the name of rationalisation without considering rationale and its genesis / history behind its sanction.
• All interest free advances including Festival Advance, Bicycle Advance have been abolished stating that “with the increased pay packages provided after successive pay commissions these advance have lost their relevance. 
•  The CPC recommends the Child Care Leave should be granted at 100 percent salary for the first 365 days but at 80 percent of the salary for the next 365 days.  The CPC extended CCL to single male parents is recommended. 
•  “Special Casual Leave” The CPC suggested to Govt to review the purposes, limit the number of purposes, limit the total number of days.
• Other Interest bearing advances except HBA and PC Advance have also been abolished stating that quite a few schemes are available in the market and suggested to avail those schemes.
•  The CPC strongly recommends introduction of health insurance scheme for serving employees and pensioner. Optional to existing employees to choose CGHS or to shift to Insurance Scheme. To make it compulsory for new recruits and newly retiring employees. Also recommends to merge all 33 postal dispensaries with CGHS.
•  PAY BAND, GRADE PAY SYSTEM ABOLISHED.New Pension Structure called “Matrix based open ended pay structure” recommended.
•  Casual Leave. No change  
• Child Care Leave (CCL). First 365 days-full Pay (100%) next 365 days -80% pay  only.        
•  Maternity Leave-No change. 
• Leave Encashment- At the time of  retirement-NO change. Maximum 300 days. 
• Medical Insurance Scheme for serving and retired employees recommended. 
• TPA No hike and  only 125% DA merge.  
• LTC –No change. 
• Further recommended NO Pay Commission required.   
• 7 CPC recommended for performance related Pay and all bonus should be linked with productivity. 
• Compulsary retirement and efficiency Bar introduced.      
• Promotee and direct recruits – Entry level pay anomaly is removed. 
• NPS will continue. 
• Group Ins.   Level   Monthly contribution      Ins. Amt.                                                  1-5                  1500                          15 Lakh
                             6-9                 2500                          25 lakh
                             >=10             5000                           50 Lakh
• Pensionary Benefit- 7 CPC recommended One rank One pension.
• Minimum Pension Rs.9000/-
• Gratuity ceiling raised to Rs.20 Lakh.
•  CEA & Hostel susidy Rate
             CEA per month Rs. 2250- 25% increase when  DA crosses 50%
              Hostel subsidy- 6750-25% of increase when DA crosses   50%
• FMA- NO change. Rs.500/-PM