7th Pay Commission Resolution Notified by Central Government
7th Pay Commission Resolution Notified by Central Government
Statement showing the recommendations of the Seventh Central Pay Commission relating to principles which should govern the structure of pension and other terminal benefits and the decisions of the Government thereon.
RECENT POSTS
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Pension and Pensioners’ Welfare)
RESOLUTION
New Delhi, the 4th August, 2016
No.38/37/2016-P&PW (A) – The Terms of Reference of the Seventh Central Pay Commission as contained in Ministry of Finance (Department of Expenditure) Resolution No.1/1/2013-E.III (A) dated 28.2.2014 included the following:
“To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).”
2. The Commission, on 19th November, 2015, submitted its report to the Government on Terms of Reference as contained in aforementioned Resolution dated 28.02.2014. Government, after consideration, has decided to accept the recommendations of the Commission on pensioner benefits to the Central Government civil employees, including employees of the Union Territories and Members of All India Services subject to certain modifications, as specified hereinafter ..
3. Detailed recommendations of the Commission relating to pensionary benefits and the decisions taken thereon by the Government are listed in the statement annexed to this Resolution.
4. The revised provisions regarding pensionary benefits, which have been accepted as indicated in the Annexure, will be effective from 01.01.2016.
(Vandana Sharma)
Joint Secretary to the Govt. of India
ANNEXURE
Statement showing the recommendations of the Seventh Central Pay Commission relating to principles which should govern the structure of pension and other terminal benefits and the decisions of the Government thereon.
Item No.
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Recommendation
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Decision of Government
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1.
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Fixed Medical Allowance
The commission notes that this allowance was enhanced from
Rs.300/- p.m. to Rs.500/-p.m. from 19.11.2014. As such, further enhancement
of this allowance is not recommended.
(Para 8.17.52 of the Report)
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To be examined by a committee comprising Finance Secretary
and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs,
Defence, Posts, Health & Family Welfare, Personnel & Training
and Chairman, Railway Board, as Members. Till a final
decision is taken based on the recommendations of the
Committee, Fixed Medical
Allowance shall be paid at existing rates.
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2.
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Constant Attendance Allowance
The allowance may be increased by a factor of 1.5 i.e to
Rs.6750/- per month. The Allowance needs further increase by 25% each time DA
rises by 50%
(Para 8.17.29 of the Report)
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To be examined by a Committee comprising Finance Secretary
and Secretary (Expenditure) as Chairman and Secretaries of Home affairs,
Defence, Posts, Health & family welfare, personnel & Training and
chairman, Railway Board as Members. Till a final decision is taken based on
the recommendations of the committee. Constant attendant Allowance shall be
paid at existing rates.
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3.
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General Provident Fund
Status quo may be maintained in this respect.
(Para 9.4.4 of the Report)
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Accepted
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4.
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Rates of Pension & Family Pension
The Commission does not recommend any further increase in
the rate of pension and Family Pension from the existing levels.
(Para 10.1.25 of the Report)
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Accepted
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5.
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Quantum of Minimum Pension
The recommendations of the commission in relation to pay
of a personnel will lead to a significant increase in the minimum from the
existing Rs. 7,000 per month to Rs.18,000 per month. This, based on
computation of pension, will raise minimum pension from the existing Rs.3500
to Rs. 9,000. The minimum pension based on the recommendations of the
commission will increase by 2.57 times over the existing level.
(Para 10.1.27 of the Report)
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Accepted
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6
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Rate of additional Pension and Family Pension to the
older pensioners
The commission is of the view that the existing rates of
additional pension and additional family pension are appropriate.
(Para 10.1.30 of the Report)
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Accepted
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7.
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Time Period for enhanced family pension.
The commission notes that the recommendation with regard
to period of eligibility of the enhanced family pension of 10 years in case
of death of a serving employee was made based on the recommendations of VI th
CPc Report. No further change is being recommended by the commission.
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Accepted
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8.
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Gratuity Ceiling and its indexation.
The Commission recommends enhancement in the ceiling of
gratuity from the existing Rs.10 lakhs to Rs.20 Lakh from 01.01.2016. The
Commission further recommends the ceiling on gratuity may increase by 25%
whenever DA rises by 50%.
(Para 10.1.37 of the Report)
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Accepted
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9.
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Rationalization of death gratuity
The Commission, after examination of the matter,
recommends the following rates for payment of death gratuity:
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Accepted
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10.
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Commutation of Pension and restoration of commuted
pension
The Commission does not recommend any change either in the
maximum percentage of commutation or in the period of restoration.
(Para 10.1.43 of the Report)
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Accepted
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11.
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Revision of Pension of Pre 7th CPC
Retirees
The Commission Recommends the following pension
formulation for civil employees including CAPF personnel who have retired
before 01.01.2016
(i)All the civilian personnel including CAPF who
implementation of the Seventh CPC recommendations) 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
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.
(ii) The second calculation to be carried out is as
follows. 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.
(iii) Pensioners may be given the option of choosing
whichever formulation is beneficial to them.
It is recognized that the fixation of pension as per
formulation in (i) above may take a little time since the records of each
pensioner will have to be checked to ascertain the number of increments
earned in the retiring level. It is therefore recommended that in the first
instance the revised pension may be calculated as at (ii) above and the same
may, be paid as an interim measure. In the event calculation as per (i) above
yields a higher amount the difference may be paid
subsequently.
(Para 10.1.67 and Para 10.1.68 of the Report)
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Both the options recommended by the 7th Central Pay
Commission as regards pension revision be accepted subject to feasibility of
the implementation. Revision of pension using the second option based on
fitment factor of 2.57 be implemented immediately. The first option may be
made applicable if its implementation is found feasible after examination by
the Committee comprising Secretary (Pension) as Chairman and Member (Staff).
Railway Board, Member (Staff), Department of Posts, Additional Secretary
& Financial Adviser, Ministry of Home Affairs and Controller General of
Accounts as Members
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12.
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Ex-gratia Lumpsum Compensation
The Commission recommends a Common regime for payment of
ex-gratia lump-sum compensation for civil and defence forces personnel,
payable to the next of Kin at the following rates:
(Para 10.2.77)
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Accepted | ||||||||||||||||||
Authority: http://www.pensionersportal.gov.in/
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