Reasons for Steady Decline in PIP in Recent Years

3.34 The primary reason for the steady decline in the personnel strength of the Central
Government, other than in Ministry of Home Affairs/Police, are the guidelines issued by the
Department of Personnel and Training in May 2001 on optimisation of direct recruitment to
civilian posts, which were in operation from May 2001 to March 2009. As per these guidelines
fresh recruitment was to be restricted to one percent of total civilian staff strength and with
three percent of staff retiring each year the manpower reduced by two percent per annum. The
objective was to achieve a reduction of 10 percent in staff strength in five years.
3.35 The impact of the instructions on optimisation of direct recruitment to civilian posts was
reviewed in the Report of the VI CPC. It made the following recommendations in para 6.3.10
of its report: “The Commission has recommended multiskilling of the government employees
which would increase their operational efficiency while simultaneously optimising the staff
strength. It is, however, noted that while rightsizing in government is necessary given the
changes in work process due to technology and consequent reduction of layers, a blanket ban
on filling of vacant posts across the board can impact effective functioning. More flexibility is
required in this policy for effective service delivery and care has to be taken that administrative
delivery structures do not become hollow or thin in critical areas. It is, therefore, essential that
the government revise the Annual Direct Recruitment Plan (ADRP) in terms of which only one
third of the vacancies can be filled up. This instruction has resulted in an aging bureaucracy
which does not easily adapt itself to technology. An active and younger profile in government
employment is the need of the hour. Further, strengthening of the cutting edge for efficient
delivery is required. New guidelines, where reduction in manpower and levels of fresh
manpower intake would be assessed and prioritized by the individual ministry or department
keeping its work processes, service delivery and functional requirements and budgetary
savings at centre stage should, therefore, be issued.”
3.36 Based on this the government decided, in 2009, not to extend the Optimisation Scheme.


3.82 The Commission is also of the view that a database should be available with the
government which can enable it to draw upon high level retiring personnel, who have the
required capabilities to be utilised through contractual appointments.

Retiring personnel in a number of ministries/departments are substantial and this
presents two sets of implications. At one level losing experienced high level
personnel entails unquantifiable costs as new recruits will require training and on
the job skills. At the same time it presents ministries/departments the opportunity
to align their personnel requirement in line with their current and future

leading to greater employee satisfaction.The Commission is of the view that a clear guidance from the government on jobs that can and should be contracted out would be appropriate. P/82 Modified Assured Career Progression (MACP) 5. without putting an undue burden on the public exchequer every ten years. there is no justification for increasing the frequency of MACP and it will continue to be administered at 10. MACP will continue to be applicable to all employees up to HAG level except members of Organised Group `A’ Services where initial promotions up to NFSG are time bound and hence assured. to bring about continuity and to address the concerns regarding exploitation of contractual manpower. Fixation of pay will follow the same principle as that for a regular promotion in the pay matrix. within a given budgetary outlay. remuneration prevailing in the market for comparable job profiles. who have subject matter knowledge. as is the case now. at more regular intervals. The Commission is also of the view that a database should be available with the government which can enable it to draw upon high level retiring personnel. With this.44 Although a number of demands were received for increasing the frequency of MACP as well as to enhance the financial benefit accruing out of it. general working of the economy. uniform guidelines/model contract agreements may be devised by the government. Further.1. the pay structure could be revised periodically.1. etc. In the backdrop of annual revisions. feels that India should also have a permanent Remuneration Authority that should review the pay structure based on job roles evaluation. experience and skills to be utilised through contractual appointments. after its interaction with the authorities of Australia and New Zealand. While doing so the concerns of confidentiality and accountability may be kept in view. this Commission feels that the inherent issues in the existing pay structure owing to which there was widespread resentment have been set right by way of rationalisation of pay levels. 20 and 30 years as before. Such a periodic review may have many possible fallouts: impact of revision of wages could be easily absorbed in each year’s budget and quicker remediation of anomalies would take place.49 The Commission. the employees will move to the immediate next level in the hierarchy. P/83 5. Hence. In the new Pay matrix. abolition of pay band and grade pay Report of the Seventh CPC 82 Index and introduction of a matrix based open pay structure. the . say annually.

The recommendations of the Estimates Committee of Parliament have also been cited in support of their demand.” 11. To that extent. for example.43 The view of the Ministry of Defence. the non-functional upgrade will henceforth be from level 8 to level 9.15) had specifically taken the view that the “Armed Forces need not divert their manpower to organisations like Survey of India. In the case of all such cadres/services where non functional upgradation is presently available across two levels. MES.12. P/198 .44 The Commission has noted the views of the ministry..42 The Commission notes that the V CPC in its Report (Para 33. citing the example of UK. the ministry may like to review the matter. At the same the time it notes the concerns regarding shortage of officers in the Armed Forces as has been articulated forcefully in the Joint Services Memorandum (JSM) by the Services: “…shortages have resulted in tremendous pressure on the other officers posted to the combat units which are functioning with 50 percent strength of officers.e. from GP 4800 to GP 5400 (PB-2) or in the new matrix from level 8 to level 9.present system of biannual revision of DA could also be dispensed with. in the newly restructured pay matrix the earlier situation of a common grade pay i. P/140 The Commission observes that the current progression from GP 4600 to GP 4800 on promotion as Section Officer is an appropriate upgrade and does not find any justification for placing the entry level to SO at a higher level. DRDO. Directorate General of Quality Assurance. 11. is that this is purely an administrative issue and that the government can decide on manning of cadre as per operational and administrative requirement. where the works services are stated to be civilianized.12. BRO etc. Analysis and Recommendations 11.12.45 This position brings out the need for the Armed Forces to focus on core functions and the validity of the view taken by the V CPC. Accordingly. from GP 4800 to GP 5400 (PB3) the same will now be available across only one level for example. In so far as the nonfunctional upgrade is concerned. P/508 Civilianization of Military Engineering Service 11. 5400 prevailing in PB2 and PB3 has now been rationalised. Frontline leadership has been seriously affected which is the key factor in war and other warlike operations including counter insurgency operations. There should be a gradual civilianisation of all these organisations…” 11. however.12.12.41 The IDSE Association has made its case for the civilianization of the MES.

However. P/338 8. the extension of scope of the allowance beyond Class XII cannot be accepted. CEA shall increase by 25% Hostel Subsidy (₹ pm) 4500 x 1. while 30 percent should be filled through a Limited Departmental Competitive Examination in which employees from both Levels 6 and 7 would be eligible to compete. Hostel Subsidy shall increase by 25% The allowance will continue to be double for differently abled children. on a seniority-cum-suitability basis. the following is recommended: a. The concerned ministries should earmark posts in Level 8 equal to 10 percent of total sanctioned strength in Levels 6 and 7 to be filled from subordinate engineering cadre personnel in Levels 6 and 7.The Commission took note of the issue of stagnation raised by the various representative staff associations. 33 Source: P/339 All India Consumer Price Index (Industrial Workers) .5 = 6750 (ceiling) Whenever DA increases by 50%. it is recommended that CTG should be paid at the rate of 80 percent of last month’s Basic Pay. P/326 b. due to the greatly varying nature of studies at the graduate level and beyond.17. What should be the scope of CEA? Presently CEA is payable up to Class XII. This will enable deserving and meritorious employees at Level 6 to jump Level 7 and go directly to Level 8. the following is recommended: Component Recommended rate Remarks CEA (₹ pm) 1500x1.8. Accordingly. will be eligible for non-functional upgrade to Level 9 upon completion of four years in Level 8. In line with our general approach of rationalizing the percentage based allowances by a factor of 0. 80 percent of the employees in Level 8. Hence. taking into account the various items of expenditure that are reimbursed as a part of this allowance.5 = 2250 Whenever DA increases by 50%. b. the Commission is of the view that quantum of CEA should be calibrated in such a manner that the main objective is met without the government entering into the field of subsidizing private education. 70 percent of such earmarked posts should be filled through promotion from Level 7. There is a strong demand for increasing the scope to Graduate and Post Graduate studies.17 On the whole. Composite Transfer and Packing Grant (CTG)–The Commission notes that CTG is payable to both serving as well as retiring employees upon their transfer at a similar rate of one month’s Basic Pay last drawn.

shall be paid to the employee. with the additional requirement that the certificate should mention the amount of expenditure incurred by the government servant towards lodging and boarding in the residential complex.2 Presently 12 interest-free advances are permissible.It is recommended that reimbursement should be done just once a year. whichever is lower. The amount of expenditure mentioned. Their details are as follows: Table 1: Interest-free Advances S. for a period of not less than one year Recoverable in max 12 monthly installments 3 Advance of Pay on Transfer 1 month’s pay OR 2 months’ pay in case of transfer due to shift of HQ as a result of government policy All employees transferred from one . after completion of the financial year (which for most schools coincides with the Academic year).No. or the ceiling as mentioned in the table above. For CEA. Name Amount Eligibility Remarks 1 Bicycle Advance ₹4500 GP<=2800 Recoverable in max 30 monthly installments 2 Warm Clothing Advance ₹4500 All Group C employees posted at a hill station either on first appointment or on transfer. a similar certificate from the head of institution should suffice. P/359-360 Interest-free Advances 9. The certificate should confirm that the child studied in the school during the previous academic year. For Hostel Subsidy. a certificate from the head of institution where the ward of government employee studies should be sufficient for this purpose.1.

Income Tax.No.station to another in public interest Recoverable in max 3 monthly installments 4 Advance of TA on Tour/ Transfer/ Retirement An amount sufficient to cover the officials’ personal travelling expenses for a month or six weeks in case of prolonged tours All cases where TA is admissible The advance shall be adjusted immediately after completion of tour 5 Advance of TA to the family of a deceased government employee Limited to 3/4th of probable expenses admissible under the rules Same as for retirement/transfer 6 Advance of LTC Up to 90% of the fare All eligible Central Government Employees Report of the Seventh CPC 360 Index S. Name Amount Eligibility Remarks 7 Advance of Leave Salary An amount not exceeding the net amount of leave salary including allowances for the first 30 days of leave after deduction of PF. House Rent. .

₹10. drought. etc.000 for indoor treatment or outdoor treatment of 3 months or less for cancer. etc. All officials proceeding on leave for a period not less than 30 days Adjusted against the monthly salary bills 8 Advance in connection with medical treatment 90% of the package deal for specific major illnesses. ₹7500 All non-Gazetted employees Recoverable in max 12 monthly installments 11 Advance for training in Hindi through Correspondence Course ₹450 For those Central . ₹36.000 for treatment of TB where duration is more than 3 months All Central Government employees except Railway employees 9 Festival Advance ₹4500 GP<=4800 Recoverable in max 10 monthly installments 10 Advance in the event of natural calamity like flood. cyclone.Recovery of Advances.

to do away with outdated provisions and thereby Report of the Seventh CPC 361 Index save on the costs involved in administering these advances. the following is recommended: S. 2 HBA 34 times Basic Pay OR .1.1.8 Regarding other interest-bearing advances.3 There is a general demand from the JCM-Staff Side to increase all interest-free advances to three times their present value. it is recommended that all Interestfree advances should be abolished.4 As can be seen from the table above. Hence. No. Analysis and Recommendations 9.Government employees who undergo training through correspondence course conducted by the Central Hindi Directorate 12 Advance for Law Suits ₹500 All Central Government employees Recoverable in max 24 monthly installments 9.000 or actual price of PC. the amount of most of the advances is quite low. whichever is lower May be allowed maximum five times in the entire service. P/362 9.1. Name of Advance Recommended Ceiling Recommendations 1 PC Advance ₹50. these advances have lost their relevance. With the increased salary packages provided after successive Pay Commissions.

₹25 lakh OR anticipated price of house. Existing employees who have already taken Home Loans from banks and other financial institutions should be allowed to migrate to this scheme. HBA should be admissible to both separately. 35 Source: . If both spouses are government servants. whichever is least The requirement of minimum 10 years of continuous service to avail of HBA should be reduced to 5 years.