7th Pay Commission: Annual increment rate retained at 3% for central govt employees

S V Krishnamachari
pay commission, annual increment rate, 7th pay commission, central govt employees

The central government employees have some reason to cheer as the financial year draws to a close: the government has accepted the 7th Central Pay Commission's (CPC) recommendation of 3 per cent annual increment for them. However, there was no word on raising allowances.

The annual increment won't be automatically given to all; the non-performers won't get it. "The 7th CPC has also recommended withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service," Arjun Ram Meghwal, Minister of State for Finance, said in a written reply to a question in Lok Sabha on Tuesday (March 28).

MACP stands for Modified Assured Career Progression.

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The government is yet to take a decision on the issue of raising allowances for the employees as recommended by the pay panel. 

The 7th CPC has observed that it is essential to have a linkage between Departmental Results Framework Documents (RFD) and Annual Appraisal Performance Report (APAR) and has suggested modification in the existing APAR system for determining Performance Related Pay that include aligning and prioritising objectives.

The government is yet to take a decision on the issue of raising allowances for the employees as recommended by the pay panel.

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The CPC examined 196 allowances and gave its recommendations on abolishing or raising some of them while recommending others to be subsumed with other perks. It had proposed a 138.71 per cent hike in HRA and 49.79 per cent for other allowances, while submitting its voluminous report in November 2015.

While accepting the CPC's recommendations on salary, the Modi government had appointed a committee to examine the panel's proposals on allowances last June. 

Some of the allowances that have been recommended for abolition or subsuming with other benefits include: hair-cutting, soaps, washing and uniform. On hair-cutting allowance paid to the foot soldiers — referred to as personnel below officer rank or PBOR — of the Central Industrial Security Force (CISF), the CPC had said: "This (hair cut) allowance is granted to PBORs of CISF to compensate for the cost of hair cutting, at the rate of Rs 5 pm. No demands have been received regarding this allowance. The Commission took note of the fact that the amount of this allowance is the lowest among all allowances. This allowance has been subsumed in Composite Personal Maintenance Allowance and, therefore, should be abolished as a separate allowance."

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