Seventh CPC: Approach for simplification and rationalisation

November 25, 2015November 25, 2015 Ajit glowfriend Public Matters Beaureucracy, Central Services, Fitment Index, Government, Government of India, Government Servants, PAY Matrix, Pay Scales, Seventh CPC

The Seventh CPC like other Pay Commissions had been entrusted with the responsibility of evolving pay structures which were rational and simple.It was expected that the pay packages offered should be able to attract best talent in civil and defence services and also be capable of ensuring performance related efficiency while taking note of the existing socio political setup in the country.The pay structure should ensure value addition to services by talent of individual employees.

While discussing the pay structure for civilian employees the report explains the evolution of compression ratio to present level.Compression ratio is the ratio between the lowest pay and the highest salary drawn by Secretary to Govt. of India in the pay structure.At the time of first CPC the ratio was 1:36.4(min Salary of ₹ 55 against highest of ₹ 2000.) .This came down to 1:11.4 in sixth CPC (min Salary of ₹ 7000 against highest of ₹ 80000).

There were several innovations brought about by VI CPC which included running pay bands for both Civilians as well as Defence forces as well as the introduction of the concept of Grade Pay as a level differentiator besides calculation of the annual increment on percentage basis.Sixth CPC had also recommended abolition of Gr.D category posts by elevation of present incumbents to Gr.C by skill upgradation.It reduced 35 pay scales of Vth CPC to 23 (19 Pay bands +4 fixed pay levels).

However the Seventh CPC was confronted by stakeholders with several inconsistencies in Pay bands and Grade Pay structures and anomalies in Entry pay recommended by Sixth CPC at various level . This scenario had lead to demand for a fitment factor which may cover all cases in equitable fashion.

The recommendations of Seventh CPC are for abolishing the system of Pay Bands and Grade Pay and creation of new functional levels by merging the grade pay with the pay in the pay band. Commission said that it has ensured that all of the existing levels have been subsumed in the new structure; and no new level has been introduced nor has any existing level been dispensed with.The Seventh CPC has recommended a Pay matrix with distinct Pay Levels. The Level would henceforth be the status determiner as per table given below:

Pay Levels as per Pay Matrix

The Commission has pointed out that with this methodology of pay fixation “..any new entrant to a service would wish to be able to make a reasonable and informed assessment of how his/her career path would traverse and how the emoluments will progress alongside. The new pay structure has been devised in the form of a pay matrix to provide complete transparency regarding pay progression.”

In addition to the pay matrix the CPC has also applied concept of rationalisation of entry pay to take care of uneven pattern of a jumps in the career hierarchy under existing pay scales in the Government of India. This system is based on the premise that with enhancement of levels from Pay Band 1 to 2, 2 to 3 and onwards, the role, responsibility and accountability increases at each step in the hierarchy.

Rationalistion table.png

The pay matrix as suggested by CPC is intended to replace existing system of Pay Bands and Grade Pay.The pay matrix comprises of two dimensions. ” It has a “horizontal range” in which each level corresponds to a ‘functional role in the hierarchy’ and has been assigned the numbers 1, 2, and 3 and so on till 18. The “vertical range” for each level denotes ‘pay progression’ within that level. These indicate the steps of annual financial progression of three percent within each level.”

The Commission has devised the pay matrix by calculating the sum of Basic pay and Grade Pay at various stages and multiplying the sames of by a multiplication factor of 2.57 . While devising the pay matrix the entry pay has been calculated by adopting different multiplication factors (shown as index in table below) for different pay bands depending on respective functional responsibilities.Pay Matrix is given below.

Pay Matrix

Pay Matrix 2

The following methodology has been suggested for fitment:

“The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57. The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay. If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. “

The CPC report has given some working examples for calculation.Having had a brief insight into Civilian Pay Scales we shall take up Army Pay Scales shortly.

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Public Services Bill 2007: Magna Carta for public servants in India

July 7, 2009July 7, 2009 Ajit glowfriend Public Matters Chief Election Commisioner, Election Commission, Government, Government Servants, India, Indian Forest Service, Indian Parliament, policy, Politics, public servants, Public Services

The Public Services Bill 2007 which is expected to be taken up by the Indian Parliament in the current session is a manifestation of the struggle of the Indian bureaucracy for devising a mechanism which could ensure efficiency and efficacy of public services . The proposed legislation attempts to set up a regulatory and protective framework for making the civil and police officers perform in a competitive atmosphere without interference and without fear of persecution for being upright and impartial. It covers All India Services namely the IAS, IPS and Indian Forest Services. State Govts. have the option to extend it to respective state public services.

The bill visualizes setting up of a Central Public Service Authority as the apex agency responsible for coordination, control and monitoring of various structural changes visualized in the proposed enactment. The matters relating to the constitution of the Central Public Authority are dealt in Chapter VI of the Bill.

The Authority is to be headed by a person of eminence with at least 25 years expertise in dealing with public service matters. However the bill prohibhits appointment of a MP or MLA or a person connected to any office in a political pand India’s arty to this post. The authority shall have between 3 to 5 members in addition to the Chairperson.

The appointment of Chairperson and members is to be done with approval of the President of India based on recommendations of a selection committee comprising of the Indian Prime Minister , Leader of Opposition, and India’s Home Minister with the Cabinet Secretary in the Govt. Of India as the convener. The salary and conditions of service of the Chairperson and the members shall be at par with the Chief Election Commissioner of India and Indian Election Commissioners respectively. The tenure of appointment is proposed as five years or till attaining of age of 65 years.

The Central Govt shall have to compulsorily consult this Central authority on various matters of public services including evolution and monitoring of a Public Service Code and matters relating to ethics in public service as well as the performance management startegy for public services.

The Public Services which shall be covered by the scheme visualized in the Bill have been defined as below:

Public Services” means the All India Services, the Central Services and any other Service and posts in connection with the affairs of the Union notified by the Central Government;

The principles to be followed in the matter of recruitment to public services are contained in Chapter II which highlights that such appointments shall be on basis of merit and open and fair competition.

Chapter II of the bill deals with certain idealistic concepts such as Public Service values and Public Service Codes. Central Services and All India Services have been so far covered by Conduct Rules which have over the years become a patch work quilt of instructions related to behaviour expected of public servants and need restructuring. The bill proposes to reformulate the approach to these matters .

The Public Service Values projected in the new legislation are coined in more poetic language referring to patriotism, and allegiance to law of the nation while simultaneously making reference to other practical aspects such as integrity, honesty, transparency etc. for the public services.

The bill seeks to ensure preparation of a Public Service Code with the objective of setting standards of good governance for ensuring that public services are carried out with integrity and efficiency. Any breach of public service ethics shall be subject to punishment as per sanctions prescribed in the law.

Chapter IV of the Bill concerns Performance Management and Accountability for the public services .For this purpose a Performance Management Code is to be evolved by the Central Authority .This code will help ensure that the Public Services function as per developmental and management requirements of the State and objective evaluation of performance is facilitated. The code is expected to inject elements of accountability, neutrality , integrity and professionalism of approach in public services.

Chapter V concerns the conditions of service and protection offered to public servants.

The bill proposes to retain the existing jurisdiction and functions of statutory bodies like Union Public Service Commission, Central Vigilance Commission and assigns several responsibilities to cadre controlling authority which include formulation of service rules and a grievance redressal mechanism for public servants.

In course of discharge of it’s mandated functions , the Central Authority can seek public opinion on policy matters . It has to also submit an annual report to Govt. on various functional issues including cases of non consultation or non compliance of it’s directions.

The scheme of governance conceived in the bill if accepted and sincerely implemented could metamorphose the picture of public services . Besides offering protection and performance based encouragement it could create a mechanism which is committed to deliver while taking away the interference and pressure tactics which reduce the bureaucratic performance. This will mean depriving the politicians of the unfair advantage which they enjoy today. It is to be seen whether the lawmakers would approve of the suggested changes. Let us keep our fingers crossed.

Sixth CPC Report:(vi) Sample Calculations

April 2, 2008April 6, 2008 Ajit glowfriend Sixth CPC B.N. Srikrishna, Beaureucracy, Calculations of benefit, Cost of living index, Dearness Allowance, economics, Economy, finance, GoI, Government, Government of India, Government Servants, Grade Pay, India, indian economy, Pay Bands, Pay Commission, policy, Sixth Pay commission, Srikrishna

As per promise some calculations are attempted below in respect of employees & officers covered under various categories. Calculations are based on the assumption that any advance increment would not be available at the time of pay fixation,.In other words the minimum benefits have been calculted. The calculations are for pay only. Employees will also get other benefits which would be dealt with in susequent posts. Any errors may kindly be notified.Calculations are based on old DA Rates and may be subject to change if new rates effective wef 1/1/06 are applied.(Also there is a typographical error in Col.4 Row 11.Please read 1/1/07 in place of 1/1/06)

(i) The Top Brass

(ii ) The Middle Order

(iii) The Gangadeens

Sixth CPC Report:(v) Calculation of benefit in pay

March 31, 2008April 19, 2008 Ajit glowfriend Sixth CPC B.N. Srikrishna, Beaureucracy, Calculations of benefit, Cost of living index, Dearness Allowance, economics, Economy, finance, GoI, Government, Government of India, Government Servants, Grade Pay, India, indian economy, Pay Bands, Pay Commission, policy, Sixth Pay commission, Srikrishna

The uppermost question in everyone’s mind is about the quantum of benefit which would accrue for respective categories of staff. As a starting point the increase in basic pay and arrears payable based on that may be discussed. The final benefits would be subject to approvals and modification by the Government.

A number of calculators are already available on the net and calculations made by them by and large approximate to the expected benefits. However a step by step calculation is attempted here for understanding the process.

For this exercise the following issues can be taken as settled:-

(i) The benefit would be admissible from 1^st Jan. 2006 . Whether the whole amount is paid in cash or is transferred to savings would be subject to decision by the Central Govt.

(ii) The rate of dearness allowance payable (on date of pay fixation ) shall be equal to the difference between the rate of DA on 1^st Jan. 2006 (24%) and rate as admissible on date of pay fixation. DA as on date is admissible @ 47% . The difference as on date is 47-24=23%

(Warning :Subsequent comments on this post indicate that this assumption may not be correct and a new formula based on a new index may be adopted, which will reduce the quantum of benefits)

(iii) The dearness allowance under the new scales shall be payable on basic pay +grade pay .

(iv) Arrears shall be calculated taking into account six monthly increases in DA for the intervening period as shown in the table above.

(v) The report visualizes accrual of increment on 1^st July 2006 , 2007 & 2008 and one increment should accrue due to pay fixation from 01/01/06. Therefore minimum of three increments (=7.5% of basic pay as fixed on 1^st Jan 2006) would have become due at the time of pay fixation.

(vi) Since increments are to be released @2.5% of the basic pay annually ,an increase of 7.5% (three increments) may be expected due to accrual of increments at the time of pay fixation.

(vii) For the purpose of pay fixation the calculations are to be made by cross matching the basic pay being drawn with the pay and grade pay which would now be admissible with the help of table 2.2.2 shown at page 54 -70 Chapter 2 of the Report of Sixth CPC .

An illustration may be considered.

Let us consider the case of an officer in the pay scale of Rs.14300-18300 /- who is having basic pay of Rs.15500 /- at present. On 01/01/06 his basic pay would be Rs. 14700 /-. The table applicable to officers in the scale of Rs. 14300-18300 /-corresponds to Pay Band PB-3 which covers Gr. A Services of this category .

Salary under the old Pay Scales:Since at present the officer would be drawing basic pay of Rs.15500/-.Dearness Allowance calculated @47% on (Basic pay + Dearness Pay) would be payable . DA thus calculated is Rs10927/-.

Total pay on 01/01/08 under old Scale would be (15500+7750+10927)= Rs 34177/-

Salary under the new Pay scale:

As per the above table on 1^st Jan.2006.the officer would be entitled to basic pay of Rs. 25580/- and grade pay of Rs. 7600/-in the new scale which would total to Rs 33180/- Increments @ 2.5% (Rs. 830/-)each would be due on 1^st Jan. 2006 ( for pay fixation) , 1^st July 2006 & 1^st July 2007 .

Pay hike due to increase in rates of DA shall be @ 5% wef 1^st July 2006 , @6% wef 1^st Jan 2007, @ 6% wef 1^st July 2007 and 6% wef 1st Jan 2008, Totaling to 23% on date.The following increase may be assumed in the pay of the employee

(i)Basic Pay + grade pay in new scale as on 01/01/06 =Rs. 33180/-

(ii) Adding three increments @ 7.5% (Rs.830/- eachX3)=Rs. 2490

(iii) Pay after adding increments =Rs. 36670/-

(iv) Increase in DA as payable @ 23% =Rs.8434/-

(v) Total Pay on Date in new Scale of Pay = Rs.45104/-

The monthly increase is coming in the range of Rs. 11000/- per month which appears to be a bit unrealistic. If any corrections are suggested, the same would be welcome. At this rate the arrears payable may be in the range of{ Rs.8000/- (average. diff in pay) X 30} which accounts for intervening two and half years.

(If we take only two increments in this period then the jump as on date may be in the range of Rs.9000/- pm only and average increase may be Rs.6500/- pm). Those desiring exact amount of arrears may wait for some time till reliable calculators are available on the net.

Alternatively by following the above method and calculating increase based on six monthly increase in DA and annual increment in pay details can be worked out .

Some Exceptions

(i) Promotion or change of Scale of Pay between 01/01/06 and fixation of new pay

Such employees would be allowed choice of refixation of pay from the date of subsequent change in the scales of pay and would get benefit of matching pay & grade pay.

(ii) Cases of new recruitments: Pay & Grade Pay of such employees shall be fixed at the lowest pay and grade pay in the corresponding pay band. However they will get benefits of increments. For calculating the number of increments the number of years required to move from the entry grade post in the pay band to the stage of pay in the recruitment scale shall be calculated as per DOPT OM Dt. 25/5/98 (or any amended instructions applicable on the date).Number of increments shall be equal to number of such years . (If it is a bit confusing pg.52 of Chapter 2 in the report may be accessed.)

Next post : Sample calculations for Gr. B,C & D employees.

Sixth CPC Report:(ii) Benefits for All India Services

March 27, 2008March 29, 2008 Ajit glowfriend Sixth CPC All India Services, B.N. Srikrishna, Central Paramilitary Forces, CPMF, GoI, Government, Government of India, IAS, IFS, incentives, India, indian economy, indian foreign services, Indian Forest Service, Indian Police Service, inidan government, IPS, policy, Sixth Pay commission, Srikrishna

Chapter 3.2 of the Report deals with All India Services. The three All India Services namely Indian Administrative Service (IAS) , Indian Police Service (IPS) and Indian Forest Service (IFS) owe their origin to the mandate given to the Parliament under Article 312 of the Constitution. The recruitments for IAS & IPS are made by UPSC based on competitive examinations held annually. The Recruitment for IFS is made through separate All India Examination. The Commission’s report has given due appreciation to the importance of All India Services and observed that innovative measures are necessary for ensuring that these services are able to deliver to the best possible extent.

The Commission has observed that the supremacy of IAS over the other All India Services has to continue as per the trend which started from the times when the First Central Pay Commission submitted it’s report. It has noted that the Fifth CPC had also held the same views in this context. While coming to this conclusion it has taken note of the wide ranging exposure to challenging assignments that the officers of this service experience over their career.

Regarding the competition with private sector salaries the Commission’s observations are that despite the difference in pay package the IAS due to it’s unique status in the scheme of governance continues to draw the best talents. A large number of young men and women who join the service are professionally qualified and have in many cases given up economically rewarding jobs to join IAS because of the challenges and prestige attached to the service. The IAS officers have been given an edge in the pay scales at the entry stage in view of the tough and challenging atmosphere that they have to encounter from the initial stage of service. The edge given by the Fifth CPC in different pay scales had in monetary terms ranged from Rs.650/- to Rs.800/-. In the recommendations for the Sixth CPC the grade pays recommended for IAS have been made slightly higher in comparison to grade pay for other services by Rs.400/- for Senior Time Scale, Rs. 900/- for Junior Administrative Grade and Rs. 700/- for NFSG (Non functional Selection Grade). The benefit would continue throughout their career due to proposed nature of pay scales known as pay bands.

For the Indian Police Service a major recommendation is for up gradation of posts of Director Generals (DGs) in all the five Central Para Military Forces (CPMFs) to revised scale of Rs. 80000/-. The Commission feels that this step would ensure continuity in the Services and create an atmosphere conducive to planning for long term reforms in these forces . For the Indian Forest Service (IFS) up gradation of similar nature has been recommended for the Post of Director of Indira Gandhi National Forest Academy (IGNFA).

The most popular demand raised by the IPS was for removal of the post of DIG which is covered by Super Time Scale of Rs.16400/-.Commission noted that the post of DIG is a functional post in most of the States as well as in CPMFs. In several States the range is headed by DIG. It has recommended that the post be continued. The officers in the Forest Service had made a similar demand for the Post of Conservator of Forests. The demand has been found unacceptable on similar grounds. Commission has also recommended that the relative hierarchical structure recommended by the previous CPC should continue in the IFS.

Cursing the Darkness

….and occassionally trying to light a candle

Government