OFFICE BEARERS : PRESIDENT:C.NAGENDRAN-9443443054 SECRETARY :K.SIVAMOORTHY - 9994240223 TREASURER: C.KARTHIKA VICE PRESIDENT: 1.S.MOHAN 2.V.CHANDRASEKAR 3.V.RAVINDRAN 4.M.KUPPAMUTHU ASST SECRETARY: 1.M.EZHILARASAN 2.R.SARAVANAN 3.R.MURUGESWARI 4.P.GANESAN ASST TREASURER:S.HABEEB ORGANIZING SECRETARY:1.S.V.PARAMASIVAM 2.S.PANDIAN 3.M.RIKHASMOHAMED

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Thursday 16 July 2015

NC JCM STAFF SIDE SUGGESTION ON HOUSE RENT ALLOWANCE TO 7 th Pay commission(7 cpc)

National Council JCM Staff Side given suggestion on House Rent Allowance for Central Government employees as under…

House Rent allowance.
 The present scheme of HRA is based on the recommendation of the 6th CPC, which is as follows:                                                                                                                                   
 Population criteria
 Classification
 Rate as a% pay+Grade pay+MSP+NPA
 50 lakhs and above
 X
 30%
 5 to 50 lakhs
 Y
 20%
 Below 5 lakhs
 Z
 10%

HRA suggestion by NC JCM

Government should take houses on long lease and make residential accommodation available to its employees on payment of 10% of their pay.

We reproduce hereunder the recommendation made by the third Central Pay Commission in the matter of grant of house rent allowance. (Para 29 Part I. Vol. IV.Chapter 56), which would be the best if implemented even today. While we find it difficult to accept the kind of parity suggested above, we are aware of the acute problem caused by the lack of adequate government housing and by the inadequate government housing and by the inadequacy of the existing rates of house rent allowance and recommend as follows:-

(ii) Government should lay down appropriate house rent allowance rates in different cities and towns based not on population criteria, but on an actual assessment of the prevailing levels 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 conditions in that city. The difference between the actual rent paid and 10% of pay should be reimbursed subject to a maximum of the difference between the notional rent and 10% of the pay. The existing norms in regard to entitlement of accommodation, size of rooms etc. could, if necessary, be reduced depending on the housing situation and the norms usually adopted by different income groups in renting accommodation in the various cities. Such notional rents should, to start with, be applied to all stations falling under the description of classified cities for purposes of House Rent Allowance, Additions could also be made to the list later on by including other cities deserving similar treatment.

(iii) Till the Government is able to make arrangements recommended in the preceding sub-paragraphs, the rates of HRA should be as follows:-
 Class of city-Town
 Rate of HRA
 1 A,BI and B2
 15% pay subject to amaximum amont of 400as house rent allowance
 2 C Class
 7 1/2% pay subject to a maximum amount of Rs 200as house rent allowance


The rates prescribed by the 6th CPC, though an improvement over its predecessor Commission, it has not improved the situation. The real estate value throughout the country has skyrocketed and owning an accommodation within the city/Municipal limit has become impossible for Government employees. There is not a single town/village where the real estate boom has remained unaffected. The phenomenal increase in the value of land has naturally impacted the rent, one is to pay on leasing house/flat. The house rent allowance does not bear even a small percentage of the rent. The 7th CPC may recommend to the Government to act upon the suggestion made by the 3rd CPC without any further delay. Pending action on the part of the Government, the Commission may suggest the following rates of House Rent allowance;The above said recommendations is still to be acted upon by the Government and the transitory provisions suggested by them i.e. payment of allowances at a pre-determined rate on the basis of classification made of the cities depending upon the population continue to be employed. The non-implementation of the above recommendation of the third CPC , has without exception, gone to depress the wage of all sections of Central Government employees as they are perforce to spend more than what they receive as HRA for obtaining and retaining the accommodation.
 Classification
 HRA
 X Classified cities
 60%
 YClassified cities
 40%
 Z  Classified cities
 20%


Source:http://7thpaycommissionnews.in/nc-jcm-staff-side-suggestion-on-house-rent-allowance/

Expected Date for Submission of 7th Pay Commission Report and its important recommendations

  As the 7th pay Commission itself declared that the work of compilation and finalization of the report is underway, it is the time for expecting the date on which the report will be submitted after it is finalized. The stipulated time for submitting the report is 18 months from the date of notification issued. In a resolution dated 28th February, 2014, Government of India has appointed the Seventh Central Pay Commission comprising Justice Shri Ashok Kumar Mathur as Chairman, Shri Vivek Rae as full time Member, Dr. Ratin Roy as part time Member and Smt. Meena Agarwal as Secretary

           The 7th pay commission has been given 18 months’ time from date of its constitution to make its recommendation. Hence the tentative date for submission of Report will be 30th August 2015.

         The sources close to the 7th Pay Commission, on the condition of anonymity told that the 7th pay Commission Report is almost finalized and the Report is expected to be submitted on or before 14th August 2015. The Leaders representing one of the railway federations in the staff side also confirmed this news.

 According to the Sources the important Points of the Pay Commission’s Recommendations are ..

1. There will be no running Pay band and Grade Pay System
2. The uniform multiplication factor for arriving revised pay will be 2.86
3. The Pay scales will be open ended to avoid stagnation in the scales
4. The Minimum Pay will be Rs. 21000
5. The CCA will be separated into two components as it was in the fifth CPC
6. Percentage of HRA will remain same.
7. The Criteria for retirement age will be either completion of 33 Years of service or at the age of      60  Years whichever is earlier.
8. CGEGIS  Insurance Coverage and Monthly premium  will be increased
9. Classification of Posts will be Modified
10. The 7th Pay Commission recommendation will be implemented with effects from 1.1.2016.

         Further ,the sources told that the Committee of Secretaries will be appointed to study the report and analyze the financial implications upon implementation of 7th pay commission recommendation.  An ally of NCJCM Staff Side told that the Staff Side also will be invited by the third week of September 2015 by this Committee before giving its final nod for approval for this Recommendation.

          It appears that after  three decades the Pay Commission recommendations will come into force on the first day of its due date. Retrospective effect will not be required for implementation of 7th Pay Commission recommendation, since the notification for implementation of 7th Pay Commission recommendations might be issued on or before 1.1.2016.  So there will be no financial burden for government on spending for payment of Arrears to this effect.

        It is indeed very good news for entire central and some State government employees community. There are expectations on its peak over 7th pay commission recommendation. Whether the 7th Pay Commission’s recommendation fulfill their expectations or not?.  Let’s hope, by the time of next month, everything that is concealed will be brought to light and made known to all.

Source:http://www.gservants.com/2015/07/16/expected-date-for-submission-of-7th-pay-commission-report-and-its-important-recommendations/

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