7th Pay Commission Latest update: Views on NJCA Communication

7th Pay Commission News – NJCA has issued a communication to all its constituent member orgainisations indicating the expected recommendations of Empowered Committee on 7th Pay Commission report. NJCA has observed as follows:-

1. Slight Increase in Minimum Pay more than what was recommended by 7th Pay Commission

2. However, increase in minimum pay is not going to result in consequential upward revision in fitment formula and pay matrix.

3. 7th Pay Commission has proposed for reduction in the HRA rate from the present of 30%, 20% and 10% to 24%, 16% and 8% respectively. There is no indication as such from Empowered Committee for restoring these HRA rates to the present level.

4. 7th Pay Commission has recommended for abolishing more than fify allowances. However, staff side is for restoring those allowances. The Empowered Committee may propose for forming a Committee by Government for getting its opinion on necessity of granting various allowances

5. As far as NPS scheme is concerned all Central Trade Unions an Federations are demanding for replacing the same with Old Pension Scheme (Defined Pension). It is expected that this matter may be referred by the Govt to a Committee formed for this purpose.

6. 7th Pay Commission has recommended for proving two options in respect of revision of present pension on implementation of its recommendations. As per first option (option 1), revsion pension will be determined on the basis of number of increments earned by the pensioner in the pay scale from thish he / she retired. Option 2 provides for arriving at the revised pension by multiplying the present pension with multiplication of factor of 2.57. A pensioner can choose any one of the options that is beneficial to him / her.

However, NJCA has now indicated that Department of Pension and Defence Ministry are against the option 1, as they are not possession of necessary records for revising the pension as per Option 1. As most of the pensioners would be benefited only if their pension is revised on the basis of increments earned by them, this will be great loss for them if Govt ignores 7th Pay Commission’s recommendations for revision of pension on the basis of increments earned by pensioners.