Thursday, 30 June 2016


There is an attempt made by certain jaundiced media platforms to propagate false information on the effect of implementation of the 7th Pay Commission Report. Many so called experts expressed their concerns about the inflation and many other socio economic issues and the generosity of the present Government and the speed at which the implementation took place. But were these all based on real facts?

In the case of 6th Pay Commission Report, it was submitted to the Government on 24/03/2008. Government decision  was published on 29/08/2008. Time taken  was 5 months and 5 days.
In the case of 7th Pay Commission report, it was submitted on 19/11/2015. Government decision was on taken on 29/6/2016. Time taken was 7 months and 10 days. Yet credit goes to Modi government for taking early decision, though actually it took 2 months and 5 days more than the previous government to decide on the issue, that too a totally simple form of cpc report.

Second propaganda is about the arrears burden and its inflation. The merger of D.A. @125% is already paid from 01.01.2016 up to the end of June 2016. Balance arrears due to the multiplication factor is only a peanut. So what real effect is going to make by the arrears payment in the economy than the currency and oil price fluctuation could make? Of course there could be an initial fluctuation due the hype  artificially created by these biased media houses. Otherwise this can be considered only as a lame excuse in anticipation of a failure of the government to contain the inflation in the coming days.

Now I am wondering what work was done by the 7th CPC? Found out that now a days Government employees are paid more than Private sector with the help of a Gujarat based Insitute? If this is the case, why we need a CPC in the future for merging the DA?

This also proves that the present Government is getting publicity of good governance due to the public relation techniques like giving chocolate to the crying babies due to ulcer in stomach (toilet, gas and yoga to the poor people who do not have food to eat, facility for education and place to sleep) and not in real terms.

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Friday, 10 June 2016

Seventh Central Pay Commission (7th CPC) Report:- 2 Anomalies in pension fixation.

There are two likely anomalies in the pension fixation. According to the recommendations of the 7th Pay Commission, in case of pension there are two types of pension fixation for those retired before 01/01/2016.  (para 10.1.67 of 7th CPC Report)

1. According to the first, "shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension". In this case, there are persons who were promoted after 01/01/2006 will loose 1 increment on account of the pay fixation in between the period 01/01/2006 and 31/12/2015. This is because the retirement minimum pay has to be taken and the earned increment during the period. This can be beneficial to those who earned 10 increment in the same scale. But those who in different scale during the 10 year period, it would be a loss because the benefit of additional increment or past increment earned in lower post based on which pay was fixed in the retiring post would not be taken into consideration, but only the minimum of the scale is taken into consideration. To remove this anomaly, for such persons, the criteria should be their minimum of the pay they had drawn in at initial pay fixation in the retiring scale plus the number of increments has to be taken.

In the second method, specifically, it is mentioned that, “The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.” Hence there is an anomaly in this. That is, in fixing the new Pay Matrix, the 7th CPC used in specific cases, other multiplication factors like 2.62, 2.67, 2.72, etc. It was used to remove anomalies in the existing grade pay. But this benefit may not be available in the second case in pension cases, since specific figure 2.57 is mentioned therein without applying the anomaly reasoning in those scales thereby creating another anomaly. Whereas in the first case, it will be available, but there is another anomaly as mention above. Hence, it is expected that, when the ministry consider the report for implementation, this point will also be considered.

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