7th CPC Questionnaire :-
1. Salaries
1.1 The considerations on which the minimum salary in case of the
lowest Group ‘C’ functionary and the maximum salary in case of a
Secretary level officer may be determined and what should be the
reasonable ratio between the two.
Any Commission which considers the question of emoluments for
employees/workers should first be inspired by the implication flowing
from the amendment to the preamble of our Constitution where-by the
words “socialist & secular” were prefixed to the word “Republic”, as
also the Directive Principles of State Policy enshrined in Article 43
i.e. the state should endeavour to secure living wage for its
employees/workers.
Group C is a skilled worker. MTS is the lowest category of Group C. The
6Ib CPC evolved the MTS by amalgamating some of the unskilled,
semi-skilled and skilled functions without any scientific basis or
logic. From the standpoint of the stipulation in the recruitment rules,
eligibility criteria etc, MTS deserves to be categorized as a skilled
worker. In practice, most of the departments have outsourced or
contractorised the
unskilled or semi skilled jobs leaving the MTS to cater to the requirements of the skilled functions.
Wage structure in civil service is to be determined on the basis of the
computation of the minimum wage; fair comparison of wages elsewhere etc.
The living wage, which is a constitutional guarantee, has not been
defined. The 15th Indian Labour Conference held in 1957 brought in the
concept of “Need Based Minimum wageN on the basis of Dr.Aykhroid
formula. The need based minimum wage is required to be provided for an
unskilled worker whenever one is employed. The definition underwent
minor changes, when the Supreme Court revised the norms later. Presently
there are no unskilled regular employees’ cadre in Government of India
services. The Commission is required to first determine the need based
minimum wage as per the Dr. Aykhroid formula and make necessary
adjustment to determine the wages of MTS which is the lowest category in
Government of India services. The co-relation of the wages of the
skilled and skilled worker at the lowest grade had always been of the
order of 130% for the skilled worker. The minimum of the pay of the MTS
has therefore to be determined at 130% of the need based minimum wage.
The minimum maximum ratio obtaining in different countries as per information gathered by V CPC was as under:
Malaysia - 1:3
Sweden 1:4USA - 1:4
Britain - 1:6
France - 1:6.6
Indonesia - 1:6.9
Australia - 1:7.7
Thailand - 1:9
Hong Kong - 1:40
However, the earlier Pay Commissions had adopted a ratio of 1:10. Since
the minimum wage in the Central Government sector is no more related to
an unskilled worker, this ratio must be proportionately changed to 1:9.
If one is to take into account the fact that the Pay of Cabinet
secretary, being the topmost Civil Servant I, for no valid
justification,is excluded by the 6th CPC, the ratio in reality between
the minimum and maximum will be more than 1:9.
Therefore, so far as maximum salary in the case of a Secretary level
officer is concerned the reasonable ratio between minimum and maximum
salary may be taken as 1:9 and salary of Secretary level officer may be
fixed by multiplying the minimum wage by a factor of 9.
1.2 What should be the considerations for determining salary for
various levels of functions falling between the highest level and the
lowest level functionaries?
Salary for various levels of functions falling between the highest and
the lowest level functionaries should be determined by applying the
existing vertical and horizontal relativitles which have been evolved
over a time through various Pay Commissions. In respect of special
functionaries like Professionals and technocrats who normally prefer to
work in the Private Sector and therefore either do not offer themselves
for Government service or tend to leave it and go over to the Private
Sector, Instead of providing them the salary structure of Group A
administrative post they may be granted a special Pay package. Similarly
unskilled workers engaged in hazardous activities like scavenging,
maintenance of rail track, in Laboratories, Hospitals may also be
considered for a special treatment.
2. Comparisons
2.1 Should there be any comparison/parity between pay scales and
perquisites between Government and the private sector? If so, why? If
not, why not?
There should be no comparison/parity between pay scales and perquisites
between Government and the private sector for their functions and
objectives are incomparable. While the private sector is motivated by
the concept of maximization of profit, the requirement of service to
public without any favour is the cardinal principle of governance. A
civil servant is supposed to possess the qualities of being fearless but
appreciative of inherent individual difficulties, non discriminatory
between one citizen and the other; sense of equality; adherence to the
rules and regulations etc. However a “fair comparison with outside
wages” is a principle which has been adopted world over for
determination of wages of Civil (Government) servants and therefore
atleast at the level of unskilled work, the average minimum wage
obtaining in selected Private/Public sector undertakings is a must,
subject to the condition that it should not be less than the Need Based
Minimum wage determined and quantified on the basis of norms adopted by
the 15 ILC.
So far as perquisites are concerned no comparison with those obtaining
in Private sector is possible except in the case of House
Rent/Travelling Allowances. Other perquisites in the Private sector have
been granted on altogether different considerations.
2.2 Should there at all be any comparison/parity between pay scales
and perquisites between Government and the public sector? If so, why? If
not, why not?
Yes. For the sake of a fair comparison of wages.
2.3 The concept of variable pay has been introduced in Central Public
Sector Enterprises by the Second Pay Revision Committee. In the case of
the Government is there merit in introducing a variable component of
pay? Can such variable pay be linked to performance?
The concept of performance related pay structure was actually imported
by the 6’ CPC through the Pay Band and Grade Pay system. In the absence
of an objective measurement criterion to evaluate the performance of
individual officials and groups, the innovation was flawed right at the
outset. The 6th CPC failed to recognize the fact that in Governmental
set up, segmentalisation of functions into tiny units is next to
impossible. In order to make the concept workable, the organization must
be capable of finalizing clear cut targets both at the individual and
group levels. This being difficult in most of the Governmental
organizations, it is not desirable either to continue with the existing
system or import or replicate what is done in the Public Sector
Undertakings. This apart, it is pertinent to point out that most the
west Europeancountries, which adopted the Performance pay related scheme
in civil service in the hay-days of Thatcher-Reagan era subsequently
discarded it as infeasible.
3. Attracting Talent
3.1 Does the present compensation package attract suitable talent in
the All India Services & Group A Services? What are your
observations and suggestions in this regard?
Generally the pay package in Government service at all levels is at a
low level compared to the exorbitant pay packets provided by some of the
Transnational Corporation in the private Sector. This has no doubt a
deleterious impact on the quality of personnel recruited to Civil
service, especially at lower levels. Since the Group A Service officers
In Civil Service enjoy enormous power, perks privileges and an
incomparable job security it has continued to attract talents. As
mentioned elsewhere, while parity with the pay and perquisites with the
private sector is neither desirable nor feasible, the Commission must
ensure thin at the widening gap in this regard is taken into account as
an important factor to be addressed, The element of statutory Pension is
one very important and significant factor in attracting persons for
Government service.
Therefore, the NPS and PFRDA Act may be scrapped and statutory pension as a service condition may be restored.
3.2 To what extent should government compensation be structured to attract special talent?
Government may be required to requisition the service of personnel with
special talents of professionals and technocrats for specific jobs. The
Commission may evolve a scheme for the recruitment and retention of such
professionals and technocrats with special pay packets and flexible
service conditions.
4. Pay Scales
4.1 The 6th Central Pay Commission introduced the system of Pay Bands
and Grade Pay as against the system of specific pay scales attached to
various posts. What has been the impact of running pay bands post
implementation of 6th CPC recommendations?
The Pay Band and Grade Pay system evolved by the 6th CPC in
implementation of the concept of performance related pay structure in
civil service, as mentioned elsewhere, was a disaster. Having introduced
without proper consultation with the stake holders, It did not serve
the requisite purpose. The system brought about innumerable anomalies of
varied nature, which could not be addressed by the National or
Departmental Anomaly committees within the parameters stipulated by the
Government. The failure of these committees to address the issues which
were appreciated by all concerned as genuine stand testimony of the
incorrigible character of the scheme leaving no alternative except to
discard it to be replaced by the Pay scale structure.
4.2 Is there any need to bring about any change?
Yes. This has to be changed lock, stock and barrel.
There is a need to revert to Time Scale pattern of wage structure
abandoning the Pay Band Grade Pay Structure. The time scale of pay
should have a minimum pay and annual increment at the rate mentioned in
answer to question No. 5.2 but without any maximum so that it is a
running pay scale. This will eliminate the phenomena of stagnation.
4.3 Did the pay bands recommended by the Sixth CPC help in arresting exodus and attract talent towards the Government?
No. Not at all.
The Pay Band & Grade Pay structure has not prevented the highly
qualified technocrats and professions to leave the Government in search
of better career avenues in public and private sectors.
4.4 Successive Pay Commissions have reduced the number of pay scales
by merging one or two pay scales together. Is there a case for the
number of pay scalesf pay band to be rationalized and if so in what
manner?
It must be noted that the successive Pay commissions had reduced the pay
scales only at the Group C and D levels. It has now reached a
saturation point. There is no much scope to have further exercise in
this direction except where clear overlapping exists. The Commission
must however attempt to bring about uniform hierarchical set up at all
levels in all departments. The pay scales are to be constructed by a
common multiplication factor as was done by the 5 CPC.
4.5 Is the “grade pay” concept working? If not, what are your alternative suggestions?
It is not working and must be replaced with the pay scale structure
which was In vogue prior to the implementation of the 6th CPC. The
purpose for which it had been devised is not specified by the VI CPC. It
also did not serve as a fitment benefit. At best the grade pay can only
be termed as an adhoc increase which has been allowed over the existing
basic pay and DA as on 1.1.2006.
5. Increment
5.1 Whether the present system of annual increment on 1 July of every
year uniformly in case of all employees has served its purpose or not?
Whether any changes are required?
No. In fact the single date increment system has brought in anomalies,
which were discussed at length at the National Anomaly Committee,
without reaching an agreement. In our Opinion, the commission must
recommend, for administrative expediency, two specific dates as
increment dates. Viz. 1st January and 1st July. Those
recruited/appointed/promoted during the period between 1 Jan and June,
will have their increment date on l January and those
recruited/appointed/promoted between 1st July and 31st December will
have it on 1st July next. This apart the Commission is required to
specifically recommend that those who retire on 30th June and 31st
December are granted one increment on the last day of their service.
5.2 What should be the reasonable quantum of annual increment?
The reasonable quantum of increment should not be less than 5% of the
basic pay or the rate of increment agreed upon through bilateral
discussion in the Banking industry, whichever is higher.
5.3 Whether there should be a provision of variable increments at a
rate higher than the normal annual increment in case of high achievers?
If so, what should be transparent and objective parameters to assess
high achievement, which could be uniformly applied across Central
Government?
Without defining the term uhigh achiever” and prescribing transparent
and objective parameters to assess high achievement the system of
variable increments at a rate higher than normal annual increments will
be misused on subjective assessment of high achievements. For these
reasons and for what we have stated in reply to question No.2.3 the
scheme of variable increment is not desirable.
5.4 Under the MACP scheme three financial up-gradations are allowed
on completion of 10, 20,30 years of regular service, counted from the
direct entry grade. What are the strengths and weaknesses of the
scheme?
Is there a perception that a scheme of this nature, in some
Departments, actually incentivizes people who do not wish to take the
more arduous route of qualifying departmental examlnations/ or those
obtaining professional degrees?
There should be 5 financial upgradation in the departmental promotional
hierarchy. MACP is a time bound promotional scheme, The scheme is
required to be continued to motivate personnel at all levels and at all
departments especially in those organizations, where normal promotional
avenues are few and far between. Normal promotions are dependent upon
the availability of vacancies at higher levels. The job requirement of
certain organizations may not be capable of creating requisite number of
higher level positions whereas it might need large number of personnel
at lower levels. MACP alone can take care of that specific situation.
The arduous route of career progression through examination and
professional qualification, no doubt will be preferred if and if only
such promotions are made available for the eligible candidates within a
reasonable period of residency in the feeder cadre. Say three years.
6. Performance
What kind of incentives would you suggest to recognize and reward good performance?
We are against the system of incentives to reward good performance as
this would only encourage favouritism and nepotism for the reasons
stated to our reply to question No.2.3 an d 5.2
7. Impact on other organizations
Salary structures in the Central and State Governments are broadly
similar. The recommendations of the Pay Commission are likely to lead to
similar demands from employees of State Governments, municipal bodies,
Panchayati raj institutions & autonomous institutions.
To what extent should their paying capacity be considered in devising
a reasonable remuneration package for Central Govt. employees?
Capacity of a Governmental organization to pay cannot be gauged only
from the available resources but also its potential to raise resources.
Wages cannot be determined on the single factor of capacity of the
Government to pay. It must be noted that there are various State
Governments in the country which pay better pay packets, perquisites and
allowances to its employees than what is provided to the Central
Government employees. Panchayati Raj institution, Municipalities,
normally follow the salary structure of the respective State
Governments. It is also to be noted that various State Governments do
revise the wages of their employees once in five years. In any case the
incapacity of the government to pay cannot be a justification to deny
the minimum wage to workers and the salary structure based upon that
concept, especially in the background that the government is to function
as a model employer. It also cannot be an excuse for denial of wages on
a fair comparison of the wages existing in the society which is evolved
as a product of collective bargaining of the workers.
8. Defence Forces
8.1 What should be the considerations for fixing salary In case
of Defence personnel and in what manner does the parity with civil
services need to be evolved, keeping in view their respective job
profiles?
No comments
8.2 In what manner should the concessions and facilities, both in cash
and kind, be taken into account for determining salary structure in case
of Defence Forces personnel.
No comments
8.3 As per the November 2008 orders of the Ministry of Defence, there
are a total of 45 types of allowances for Personnel Below Officer Rank
and 39 types of allowances for Officers. Does a case exist for
rationalization/ streamlining of the current variety of allowances?
No comments
8.4 What are the options available for addressing the increasing expenditure on defence
pensions?
No comments
8.5 As a measure of special recognition, is there a case to review the present benefits provided
to war widows?
No comments
8.6 As a measure of special recognition, is there a case to review the present benefits provided
to disabled soldiers, commensurate to the nature of their disability?
No comments.
9. Allowances
9.1 Whether the existing allowances need to be retained or rationalized in such a manner as to ensure that salary structure takes care not only of the job profile but the situational factors as well, so that the number of allowances could be at a realistic level?
The existing allowances need to be retained. They are at a realistic
level having been evolved by successive Pay Commission over detailed
deliberations.
9.2 What should be the principles to determine payment of House Rent Allowance?
The IlIrd CPC had recommended that Government should lay down
appropriate HRA rates in different cities and town based not on
population criteria, but on an actual assessment of prevailing level of
rent in different cities and Towns. Alternatively, certain notional
rents for different types of accommodation meant for officers and
personnel of specified pay groups should be laid down for particular
cities after studying the actual market rent in that city. The house
rent allowance will have to be the actual rent payable by an employee in
a particular location as reduced by 10% of basic pay being the amount
factored in the computation of minimum wage.10. Pension
10.1 The retirement benefits of all Central Government employees
appointed on or after 1.1.2004 are covered by the New Pension Scheme
(NPS). What has been the experience of the NPS in the last decade?
We are of the considered opinion that the new pension scheme which came
into existence for the employees recruited after 1.1.2004 must be
scrapped. The old statutory pension scheme as was in vogue prior to
1.1.2004 must be made applicable to all Government employees
irrespective of the date of their entry into Government service. The New
pension scheme has in fact created a class within class amongst the
Central Government employees which is discriminatory and impermissible.
It is clearly in contravention of the dictum pronounced by the
Constitution Bench of the Supreme Court in Nakara Vs Union of India and
therefore deserves to be rescinded. Since this New Pension Scheme has
been introduced with effect from 0101.2004, it will come into operation
only after 30 years in the year 2034 or so when present new entrants
retire and get pension from annuities purchased from 40% of total
accumulated pension fund.
10.2 As far as pre-1.1.2004 appointees are concerned, what should be
the principles that govern the structure of pension and other retirement
benefits?
The concept of modified parity introduced by the 5th CPC as a measure to
reduce the financial implication must be replaced with the full parity
concept as was made applicable for the personnel retired prior to
1.1.1986. In other words, the pay of every retired person must be
re-determined notionally as if he is not retired and then his pension to
be computed under the revised rules. This alone will protect the value
of
pension of a retired person.
5th CPC in their Para 127,6 has observed, “It needs to be averred
emphatically that pension Is not in the nature of alms being doled out
to beggars. Senior Citizens (Retired Government employees) need to be
treated with dignity & courtesy benefitting their age. Pension is
their statutory, inalienable, enforceable right & it has been earned
by the sweat of their brow” Hon’ble Supreme Court, in its landmark 5
Judge Constitutional Bench judgement dated 17.12.1982 in the case of
D.S. Nakara Vs Union of India ruled - “A Pension scheme consistent with
available resources must provide (adequate pension) so that the
Pensioner would be able to live
I) free from want, with decency, independence and self respect and
ii) At a standard equivalent at pre-retirement level.Ii) Pensioners from
payment of pension form a homogenous class. Different formulae
affording unequal treatment cannot be adopted to compute their pension
solely on the ground that some retired earlier and some retired later.
A comprehensive scheme of retirement benefit has been suggested by the
stake holders both as an agenda in the National Council meeting of JCM
and the meetings of SCOVA. The Commission is requested to consider the
well thought out scheme formulated in those agenda and make
recommendations to the Government, so that the pension and retirement
benefits will really become meaningful for the retired employees. We
shall elucidate the points in detail when we submit the memorandum to
the Commission on
retirement benefits.
11. Strengthening the public governance system
11.1 The 6th CPC recommended upgrading the skills of the Group D employees and placing
them in Group C over a period of time. What has been the experience in this regard?
The then existing Group D employees, to the best of our understanding
have all been trained, upgraded or promoted to function as skilled group
C employees.
11.2 In what way can Central Government organizations functioning be
improved to make them more efficient, accountable and responsible?
Please give specific suggestions with respect to:
a) Rationalisation of staff strength and more productive deployment of available staff;
b) Rationalisation of processes and reduction of paper work; and
c) Economy in expenditure.
Whatever rationalization effected so far by the Government had been
through an unscientific and arbitrary executive fiat like the one issued
in 2001 and which was kept operative till 2009. The said exercise only
reduced the staff strength drastically. We arenot aware of any
rationalization or reduction in Group A cadres through this exercise
even though the executive instruction covered all grades and cadres in
the Government service. It in effect made most of the departments of the
Govt. of India either non functional or dysfunctional. In our
considered opinion, the 7thCPC must recommend to the Government to set
up a Committee in each department with experts from outside the
organization, the officials from within the organization and
representative of the Unions of the respective department to study the
functional changes taken place over the years, especially due to the
induction of modern technology the new challenges and the best way to
meet those challenges’ reduction in paper work, customer satisfaction
and economy in expenditure and make suggestions to the Government for
their acceptance and implementation in toto.12. Training! building
competence To ensure that periodical professional training is imparted
to all personnel to update the skills.
12.1 How would you interpret the concept of “competency based framework”?
No comments.
This in fact is a matter which must be considered by an Administrative Reforms Commission rather than a Pay Commission.
12.2 One of the terms of reference suggests that the Commission
recommend appropriate training and capacity building through a
competency based framework.
a) Is the present level of training at various stages of a persons career considered adequate?
Are there gaps that need to be filled, and if so, where?
b) Should it be made compulsory that each civil service officer should
in his career span acquire a professional qualification? If so, can the
nature of the study, time intervals and the Institution(s) whose
qualification are acceptable, all be stipulated?
c) What other indicators can best measure training and capacity building
for personnel in your organization? Please suggest ways through which
capacity building can be further strengthened?
In our opinion in- service training is the best course for skill
development. Outsourcing of Governmental functions per se is undesirable
and must be stopped.
13.1 What has been the experience of outsourcing at various levels of Government and is there a case for streamlining it?
The experience has been sheer duplication of work by existing regular
employees and deterioration of efficiency in pubic service.
13.2 Is there a clear identification of jobs that can be outsourced?
No. for reasons stated in reply to question No. 13.
14. Regulatory Bodies
No comments.
14.1 Kindly list out the Regulators set up under Acts of Parliament,
related to your Ministry! Department. The total number of personnel on
rolls (Chairperson and members + support personnel) may be indicated.No
comments. The reply has to be given Government Departments.
14.2 Regulators that may not qualify in terms of being set up under Acts
of Parliament but perform regulatory functions may also be listed. The
scale of pay for Chairperson /Members and other personnel of such bodies
may be indicated.
No comments. The reply has to be given Government Departments.
14.3 Across the Government there are a host of Regulatory bodies set up
for various purposes. What are your suggestions regarding emoluments
structure for Regulatory bodies?
No comments.
15. Payment of Bonus
One of the terms of reference of the 7th Pay Commission is to examine
the existing scriemes of payment of bonus. What are your suggestions and
observations in this regard.
The 7th CPC must make note of the recommendations of the 5th CPC &
Bazle Karim Committee Report which are yet to be acted upon by the
Government. The present system of Productivity linked bonus is the
product of bilateral agreements and cannot be changed through unilateral
decisions. What is needed is that the Government must issue necessary
guidelines to enable all departments to enter into such bilateral
agreements with their staff unions so that the adhoc bonus system
presently in vogue in many departments could be abolished.
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