" IRS OFFICERS PROMOTED FROM THE GRADE OF SUPERINTENDENT OF CENTRAL EXCISE ARE ALSO MEMBERS OF AIACEGEO. THIS IS THE ONLY ASSOCIATION FOR SUPERINTENDENTS OF CENTRAL EXCISE AND IRS OFFICERS PROMOTED FROM THE GRADE OF SUPERINTENDENT OF CENTRAL EXCISE THROUGH OUT THE COUNTRY . President Mr.T.Dass and SG Mr. Harpal Singh.

Wednesday, 3 June 2026

MACP upgradation

 

ALL INDIA ASSOCIATION OF CENTRAL TAX

GAZETTED EXECUTIVE OFFICERS

(Earlier known as All India Association of Central Excise Gazetted Executive Officers)

President:                                             Address for communication:                                      Secretary General:

Kajal Kumar Mandal                         Flat No. 6, SE 11, Shastri Nagar, Ghaziabad                           Harpal Singh

Mob. 9957366172      mail Id:aiacegeo2019@gmail.com        Site: cengoindia.blogspot.in       Mob. 9717510598

Chief Patron: Ravi Malik Patrons: A. Venkatesh, C. S. Sharma, M. Nagaraju

Vice Presidents: B C Khatik, K D Venkatraman  (Central) Swapan Kr Das, Subrata Adhikary (East) Ashish Vajpayi, B B Sharma (North) G Srinivas Reddy, G Ananda Sukumar (South) Siddhraj Parmar, Vimal Kishore Soni (West) Joint Secretaries: Manoj Kumar, T J Manojumon (Central) Pradyut Purkayastha, Ashis Maji (East) Rajeev Prakash, Anil Sreedharan (West) Prabhakar Sharma, R B Sahu (North) K Yugandhar Kumar, S M Kosalaya Devi (South); Office Secretary: B C Gupta Treasurer: Manoj Kumar Liaison Secretary: Bhoopesh Organising Secretary: Utkarsh Sharma West Zone Coordinator: R Keny Legal Coordinator: S Sabarwal Joint Organising Secretary: Jayant Dey East Zone Coordinator: Debasish Modak

(Recognised vide F.No.B-12017/17/2022-AD-IV A dt. 14.07.23 of CBIC, Govt. of India)

Ref. No. 35/AIB/M/26                                                                                  Dt. 03.06.26

To,

(1) The Secretary, DOPT, New Delhi.

(2) The Secretary, Department of Expenditure, New Delhi.              

(3) The Secretary, Department of Revenue, New Delhi.                                                                  

(4) The Chairman, CBIC, New Delhi.

Sub: MACP upgradation.

Dear Sirs,

            Kindly refer to the various representations submitted by this Association since very beginning on the subject matter.

2. It is brought to your kind notice with due regards that our officers were getting GP of Rs. 5400 in PB3 after completion of 24 years under ACP Scheme whereas they are getting the same after completion of 30 years under MACP Scheme as also accepted by the CBIC vide F.No.A-26017/84/2014-Ad.IIA. Thus, MACP Scheme has been proved totally disadvantageous & discriminatory to our officers.

3.  This injustice is being done on the pretext of para 8.1 of Annexure-I of MACP OM No. 35-34/3/2008-Estt(D)dated 19.05.2009. In totally arbitrary manner, not only the GP of Rs. 5400 in PB2 & PB3 is being treated separately for the purpose of MACP upgradation but NFS/NFU of Rs. 5400 in PB2 is also being treated as one MACP upgradation whereas it is nowhere mentioned in Para 8.1 that the NFS/NFU would be treated as financial upgradation under MACP scheme. The para 8.1 says that consequent upon the implementation of Sixth CPC’s recommendations, grade pay of Rs.5400 is now in two pay bands viz., PB-2 and PB-3. The grade pay of Rs.5400 in PB-2 and Rs.5400 in PB-3 shall be treated as separate grade pays for the purpose of grant of upgradations under MACP Scheme.

4. It is nowhere mentioned in Para 8.1 or FAQ No. 16 of the DOPT that the nonfunctional scale in Grade Pay of Rs. 5400 in PB-2 is to be treated as a financial upgradation under MACP Scheme. Nothing such to treat NFS/NFU as MACP upgradation is also mentioned either in the Govt. Resolution dated 29.08.2008 or anywhere in MACP scheme, nor it has been recommended by the CPC. The scheme also talks of “financial upgradations under MACP scheme”, not any other financial upgradation. It means that three financial upgradations are to be counted for the purpose which have been given under MACP scheme. No other financial upgradation is to be treated as financial upgradation under MACP scheme.

5. The Para 8.1 of the DOPT instructions is a corollary to para 8 and applicable only to those departments where the Recruitment Rules provide for promotion to the post carrying the same Grade Pay. Since the Grade Pay of Rs. 5400 in PB2 is not a part of the promotional hierarchy of our executive officers under CBIC but a dynamic financial upgradation under CCS(RP)Rules as NFS, it cannot be a part of MACP Scheme which is governed by different set of rules. Moreover, DOPT in its subsequent OM/Clarification dated 05/04/2021 issued on the directions of the Hon’ble Supreme Court post the case of M V Mohanan Nair has also not equated NFS/NFU with MACP upgradation. So, it can’t be treated as MACP upgradation.

6. The para 8 of the DOPT OM provides that ‘promotions earned in the post carrying same grade pay in the promotional hierarchy as per Recruitment Rules shall be counted for the purpose of MACPS’. This means promotion can offset one MACP benefit even if there is no change in grade pay. So what matters is change of grade, not grade pay.

7. The Hon’ble Supreme court also observed under para 9 of the order in the case of M. V. Mohanan Nair v UoI, “Under the Sixth Central Pay Commission, revised pay structure has been implemented with effect from 01.01.2006, whereas benefits of ACP Scheme have been allowed till 31.08.2008. Vide Office Memorandum dated 19.05.2009, the Government of India introduced the MACP Scheme, in supersession of the ACP Scheme w.e.f. 01.09.2008.”

Thus, it is clear that NFU/NFS (non-functional scale) granted after four years of service as part of pay being implemented w.e.f. 01.01.2006 notified under statutory provisions under Article 309 independent of MACP upgradation and MACP Scheme being implemented w.e.f. 01.09.2008 as an incentive scheme, both are totally different and are not dependent on each other. Moreover, no upgradation given prior to the origin of MACP Scheme can be treated as MACP upgradation.

8. As per Para 11 of MACP OM, the grant of time scale in Grade Pay of Rs. 5400/- in PB2 before initiation of MACP scheme is not to be reopened. The para is reproduced as under:

“11. It is clarified that no past cases would be reopened. Further, while implementing the MACP Scheme, the differences in pay scales on account of grant of financial upgradation under the old ACP Scheme (of August 1999) and under the MACP Scheme within the same cadre shall not be construed as an anomaly."

Thus, any benefit/upgradation granted on or before 31.08.2008 can’t be challenged/modified/reopened as per CCS (RP) Rules read with para 11 of MACP Scheme.

9. In view of para 11 of MACP OM, it has also been clarified by the CBIC vide clarification F.No.A-23011/29/2010-Ad.IIA Dt. 20.05.11 under para 4 and 5 that there would be no effect on grant of NFS/NFU during the period between 01.01.06 to 31.08.08. Thus, NFU/non-functional scale granted during ACP period prior to introduction of MACP scheme (i.e. 01.09.2008), can no way be offset with MACP upgradation. The relevant paras are reproduced as under-

“4. Further, the benefits of ACPS of August 1999 had been allowed till 31.08.2008 and only functional promotion(s) is /are counted for the purpose of Scheme. Besides, there is no provision for counting ‘Non-functional Scale’ for the purpose of ACP Scheme.”

5. In view of the above facts and circumstances, there would be no effect on grant of ‘Non-functional Scale’  in PB-2 with grade pay of Rs.5400 during the period between 1.1.2006 to 31.8.2008, as the same is not counted under ACPS and it would not be offset against financial up gradation under the Scheme…………

10. The Hon’ble High Court of Delhi vide its judgment dated 24.08.2012 passed in WP(C) No.5146/2012 in case of Union of India Vs. Delhi Nurses Union (Regd) & Anr. held that the NFS/NFU would also not be treated as financial upgradation under MACP Scheme. The order of the High Court was also upheld by the Hon’ble Supreme Court by dismissing Special Leave to Appeal (C) CC No. 4399 of 2013 filed by the Union of India vide order dated 06.02.2018.

11. The Para 8.1 of the MACP Scheme has also been dealt with by the Hon’ble Madras High Court vide WP No. 11535/2014 in the matter of UoI & Ors vs S. Balakrishnan & Ors. Union of India assailed the order of High Court vide SLP No. 15396/2015. The same was dismissed by the Hon’ble Supreme Court and the Review petition was filed by Union of India was also dismissed. It was established by this order that-

(i) NFU/Time scale/NFS (Non-Functional Scale) cannot be offset with MACP upgradation.

(ii) GP 5400 PB3 is not higher than GP 5400 PB2 observing that the government proceeded as Grade Pay of Rs. 5400/- in PB3 is higher than the Grade Pay of Rs. 5400/- in PB2.

(iii) Next higher Grade Pay after Grade Pay of Rs. 5400/- in PB2 is Grade Pay of Rs. 6600/-.

(iv) Grade Pay of Rs. 6600/- in PB3 is to be given after Grade Pay of Rs. 5400/- in PB2 as MACP upgradation.

12. Hon’ble Delhi High Court in WP (C) No. 9357/2016 in Hari Ram & Anr Vs Registrar General case ordered on 20.12.2017 that NFU/NFS granted after 04 years of service would not count as financial upgradation for the purpose of MACP Scheme based on S. Balakrishnan verdict. The order of the Hon’ble High Court of Delhi has been implemented without further appeal.

13. As per the judgment of the Hon’ble High Court of Madras in Writ Petition No.13225/2010 titled Sh. M. Subramaniam Vs. Union of India, the officers are entitled for grant of NFS/NFU after continuous service of four years in the pay scale of Superintendent got on account of ACP/MACP. The SLP filed by UOI was dismissed establishing that NFS/NFU is independent of ACP/MACP upgradation being given after four years of it. The said decision was upheld by the Hon’ble Supreme Court in Civil Appeal No.8883 of 2011. Review Petition filed in it by UOI was also dismissed.

14. Further, in terms of Para 1(x)(e) of Resolution dated 29.08.2008 issued by the Department of Expenditure and notified in Gazeette, the grant of Grade Pay of Rs.5400 in PB-2 (referred to as ‘NFS/NFU’) on completion of 4 years regular service in Grade Pay of Rs.4800 in PB-2 to the group-B Officers of Revenue Department is revision of pay scale. It is, therefore, neither ACP/MACP nor promotion and therefore, it cannot be offset against MACP.

15. The Hon’ble High Court, Ernakulum [Order dated 04.07.2013 in OP (CAT) No. 919 of 2013 (Z)] N K Gopinathan & Allath Sundaran in para 7 also held as under:

"It was also found that the non-functional scale granted to the respondents was neither by way of promotion nor under the ACP/MACP Schemes. Learned counsel for the petitioners contended that the non-functional scale granted to the respondents should be treated as financial up-gradation and then, they were not entitled to financial up-gradation from the grade pay of Rs. 6600/- to Rs. 7600/. At the same time, the learned counsel admitted that the non-functional scale was applicable to all the employees covered by the orders in respect of the same and it was not financial up-gradation coming under the ACP/MACP Schemes. Therefore, such an argument advanced by the learned counsel has no legs to stand. The Tribunal has considered the questions in their right perspective and arrived at right conclusions. We find no infirmity or jurisdictional error with the orders passed by the Tribunal."

The Special Leave Petition preferred before the Supreme Court against the said decision has also been dismissed vide Civil Appeal Nos. 2941-42/2014 on 06.02.2018.

16. The Hon’ble High Court of Delhi vide its decision dated 22.01.2019 in WP(C) No. 4195/2015 in case of Shaira A. Khan also held based on the above dismissal of Civil Appeal Nos. 2941-42/2014,

            “The Special Leave Petition preferred before the Supreme Court against the said decision  before Hon’ble High Court, Ernakulam vide Order dated 04.07.2013 in OP (CAT) No. 919 of 2013 (Z) (supra) has also been dismissed after grant of leave vide Civil Appeal Nos.2941-42/2014 on 06.02.2018. Thus, the issue that the grant of Non-Functional Scale did not tantamount to promotion or grant of benefit under the ACP/MACP Schemes stands approved by the Supreme Court.”

17. In the case of V. K. Sharma Vs Union of India (Principal Bench, Delhi OA No. 1622/2014) also NFU granted after 04 years of service was not counted as financial upgradation for the purpose of MACP Scheme. The decision of Hon’ble Tribunal was upheld by the Hon’ble High Court.  Further, SLP No.012340 of 2018 of UOI in V.K. Sharma was dismissed by this Hon’ble Court.

18. The NFS/NFU being revision of pay scale is part of pay notified under CCS (Revised Pay) Rules, 2008 cannot be amended/revised/curtailed by an executive order as has been done by the Govt. By issuing executive instruction, Govt. illegally & irrationally resorted to modify statutory rules i.e. CCS (Revised Pay) Rules, 2008 issued under Article 309 of the Constitution, which is not sustainable in view of the settled law. In the case of Ajaya Kumar Das Vs State of Orissa & Ors. in Civil Appeal No. 4977 of 2009, as per Para 10 that executive instruction cannot over rule/override statutory rules issued under Article 309 of the Constitution. The same thing was observed by the Hon’ble High Court of Madras in Writ Petition No.13225/2010 titled Sh. M. Subramaniam Vs. Union of India in which SLP as well as Review Petition filed by the Govt. was dismissed by the Apex Court.

19. The Non-Functional scale/Non-Functional upgradation (NFS/NFU) is part of Pay Rules and it is applicable w.e.f. 01.01.2006, whereas the Hon’ble Supreme Court in the Civil Appeal No. 1579 of 2021 in the case of Union of India vs. R. K. Sharma & Ors has held that MACP is not part of pay but it is incentive. Accordingly, DOPT issued OM dated 13.07.2021 that MACP is incentive and like other allowances, it has been introduced w.e.f. 01.09.2008. Thus, NFS/NFU cannot be treated as MACP, both being two different entities and being implemented from two different dates.

20. So, our officers are entitled for grant of 2nd financial upgradation under MACP Scheme in Grade Pay Rs. 6600 and 3rd financial upgradation in Grade Pay Rs. 7600 after joining as direct Inspector. Accordingly, the officers joining one level below Inspector are entitled GP of Rs. 6600/- on 3rd MACP upgradation. The fixation of Grade Pay of Rs.5400 in PB-2 was due to revised pay scale and the same could not be offset as a financial upgradation under MACP Scheme as the scheme or Govt. Notification dated 29.08.2008 issued under Article 309 does not lay any provision for offset of NFS/NFU with the financial upgradation under MACP Scheme. There is also no provision to offset financial upgradation under MACP Scheme by time scale. And any clarification could not override the resolution issued under Article 309.

21. The grant of grant of NFS in the Grade Pay of Rs. 5400 in PB-2 cannot be treated as a financial upgradation under MACP Scheme being against the spirit of MACP Scheme, which mandates placement in immediate next higher Grade Pay. Neither para 8.1 nor MACP Scheme or DOPT FAQ dated 01.04.2021 (Q.16) says that the NFS/NFU granted in Rs. 5400 PB2 would be offset against financial upgradation under MACP scheme.

22. NFS/NFU is granted after four years regular service in Grade Pay of Rs.4800 in PB-2 or equivalent. MACP Scheme provides placement in the immediate next higher Grade Pay which is Rs. 6600. It is reiterated that the Hon’ble High Court of Delhi vide its judgment dated 24.08.2012 in WP(C) No.5146/2012 titled Union of India Vs. Delhi Nurses Union (Regd.) also granted Grade Pay of Rs. 6600 after NFS/NFU without offsetting it with the financial upgradation under MACP Scheme. The order of the High Court was upheld by the Hon’ble Supreme Court as well.

23. From comparative study of ACP & MACP scheme, an employee was entitled to 1st benefit/financial upgradation after completion of 12 years of regular service as per ACP scheme, if the regular promotion was not available during that period. The employee was entitled to the 2nd benefit/financial upgradation after completion of 12 years of regular service from the date of the first benefit/financial upgradation i.e. after completion of a total of 24 years of regular service, subject to fulfilment of prescribed conditions whereas under the MACP scheme, the employee is entitled to three benefits/financial upgradations on completion of 10, 20 and 30 years of regular service instead of two benefits/financial upgradations on completion of 12 and 24 years of regular service. The other distinction between the ACP Scheme and MACP scheme is that the former (ACP Scheme) assured the promotional grade, whereas the latter (MACP Scheme) only assured higher grade pay.

24. CBIC own clarification dated 02.01.2023 says that NFU is not linked to the number of promotions/financial upgradations. The Department of Expenditure resolution dated 29.08.2008 clearly states that NFS/NFU to Rs. 5400 shall be granted after 4 years of service in Rs. 4800 grade pay, irrespective of whether that grade was attained through promotion or ACP/MACP scheme.

25. The stand that NFS/ NFU will be offset with the financial upgradation under MACP scheme misinterprets both the MACP scheme and the NFU provisions. This position is contrary to the Ministry of Finance Resolution dated 29.08.2008 and CBIC clarification dated 02.01.2023.

26. Our officers are entitled to three financial upgradations under MACP scheme independent of NFS/NFU and Grade Pay of Rs. 6600 in PB3 after Grade Pay of Rs. 5400 in PB2 as per the Ministry of Finance Resolution dated 29.08.2008. The related OMs/clarifications to offset NFU/NFS with MACP upgradation were issued without amendment of the original resolution or rules and such OMs/clarifications are illegal as well as contrary to the Resolution dated 29.08.2008.

27. The relevant Resolution dated 29.08.2008 by the Ministry of Finance states that Group B Officers in the pay scale of Rs. 7500-12000 (pre-revised) shall be granted Grade Pay of Rs. 5400/- in PB-2 on completion of 4 years in the grade. This resolution does not differentiate between regular promotion or ACP/MACP as the means of reaching GP Rs.4800/-. Further the OM dated 21.11.2008, issued by the Department of Revenue clarifies that Four years shall be counted from the date the officer is placed in the pay scale of Rs.7500-12000 (pre-revised). Therefore, placement in the grade (not grade pay), whether by promotion or MACP, is the qualifying condition.

28. It is undisputed fact that the resolution dated 29.08.2008 is a statutory policy document and it explicitly provides that officers in Grade Pay of Rs. 4800 shall be granted Grade Pay Rs. 5400 after four years of service in that grade. The resolution does not make any distinction between those who attain Rs. 4800 via promotion and those who do so via financial upgradation under ACP or MACP.

29. The Madras High Court in M. Subramanian held that any clarification cannot override a resolution issued by the Ministry of Finance. The Supreme Court dismissed the government appeal in that matter further affirming the binding nature of the said judgment. However, NFS/NFU is a separate mechanism provided under the Govt. resolution dated 29.08.2008 and is not part of the MACP scheme. NFS/NFU is a time-bound scale and it is distinct from MACP. So, it was decided by the Hon’ble court that NFS/NFU would be granted after 4 years of getting pay scale of Superintendent as ACP/MACP upgradation. Further, NFS/NFU has not been categorically denied by the CBIC to officers who have got three financial upgradations prior to due date of NFU. The NFS/NFU arises by the completion of four years in GP of Rs. 4800 or equivalent and is not a promotion nor is it counted as an additional MACP upgradation. This position has been clarified even by the CBIC in its clarification dated 02.01.2023. The benefit of NFS/NFU after achieving the grade pay of Rs. 4800/- or equivalent through MACP has already attained finality in M. Subramaniam vs UOI up to Apex Court. Further in their letter F. No. A-23011/06/2021-Ad.IIA, dated 02.01.2023, Central Board of Indirect Taxes and Customs have clarified that NFU is not linked with number of promotions.

30. The Hon’ble Supreme Court in the case of UOI & Ors. Vs Ex. HC/GD Virender Singh in SLP (C) No. 16442/2021 in Para 9 of the order held, “9. As rightly held in R.K. Sharma (supra), the aforesaid reasoning given in the case of Balbir Singh Turn (supra), in our opinion, has not been accepted by the three Judge Bench decision in the case of M.V. Mohanan Nair (supra), which in clear terms holds grant of financial upgradation under the MACP Scheme is not a matter of pay structure, but an incentive scheme brought into force to relieve stagnation which operates on its own terms. We may add that the pay scales are fixed and revised by the rules which are enacted in exercise of powers conferred by the proviso to Article 309 and clause (5) of Article 148 of the Constitution of India. Therefore, vide Notification dated 29th August 2008, the Central Civil Services (Revised Pay) Rules, 2008 were enacted vide G.S.R. No. 622(E). Rule 1(2) states that the Rules, as enacted, shall be deemed to have come into force on 1st January 2006. The aforesaid Rules neither postulate nor have any provision for grant of financial upgradation under the MACP Scheme.………………………”

31. Our officers have totally been discriminated by the wrong implementation of MACPS because of being forced to get after 30 years of service under modified ACP Scheme what they were entitled to get within 24 years in original ACP Scheme, i.e., pay scale of Rs. 8000-13500/- equivalent to the grade pay of Rs. 5400/- in PB3 as also accepted by CBIC in F.No.A-26017/84/2014-Ad.IIA. These employees/pensioners are at loss instead of getting any benefit by the implementation of MACPS. The contention that NFS/NFU is to be offset against MACP benefit is contrary to the MACP Scheme which provides that whenever a person has spent 10 years of service continuously in the same grade pay, he/she is eligible for financial upgradation. A specific NFS/NFU linked with 4 years of service can no way be termed as financial upgradation under MACPS. The NFS/NFU has also not been offset with MACP by the State Governments like Uttar Pradesh etc., where the scheme has also been drawn based on the recommendations of 6th CPC. Moreover, NFS/NFU can no way be termed as financial upgradation under MACPS particularly when granted prior to inception pf MACP scheme. It is also mentioned in MACP OM itself that past cases would not be opened. The CBIC also issued circular that the NFS/NFU granted prior to inception of MACP scheme, i.e., 01.09.08 would not be counted as MACP upgradation.  

32. As per the provisions of MACPS-

(i) Screening committee is constituted (para 4).

(ii) Recommendations of screening committee are placed before appointing authority (para 5).

(iii)The employees are to give option under FR22 (1) (a) (1) (para 7 of Annexure).

(iv) APAR benchmark is required for MACP upgradation (para 17 of Annexure).

No such condition is applicable for the grant of NFU/Non-functional Grade Pay/time scale/NFS/NFG after four years of service as it is governed and granted under CCS(RP)Rules, 2008 w.e.f. 1/1/2006 and can’t be offset with MACP upgradation. The MACP requires a screening committee, APAR benchmarks, specific options under FR22(1)(a)(1) etc. whereas the NFS/NFU is a time-bound scale granted automatically after four years of regular service in the Grade Pay of Rs. 4800 without such conditions.

33. As per the Govt Order F. No. 35034/3/2015-Estt. (D) dated 28.09.2016:

“Fixation of pay will follow the same principle as that for a regular promotion in the Pay Matrix……”

Therefore, the administration cannot take a stand that any financial upgradation automatically granted after 4 years on the basis of pay structure on completion of 4 years of service shall amount to Financial Upgradation under MACP. For MACP Financial Upgradation, it MUST follow pay matrix of Regular Promotion. For MACP Financial Upgradation, the fixation of pay MUST follow the same principle as that for a “regular” promotion in the pay matrix. The NFU granted after 4 years, does not follow the same principle as that for regular promotion. In short, its neither a pay structure in pay matrix for the promoted “Regular Superintendent” nor its for promoted ‘Regular Assistant Commissioner”. The NFU is purely a pay structure for those who had completed 4 yrs of service.

34. It is also worth noticing that a government servant gets many financial upgradations regularly. For example, every year he/she gets salary upgradation by annual increment, every 6 months he/she gets DA upgradation, HRA, LTC upgradation whenever any upgradation in basic etc. Therefore, these are not counted as a part of MACP Financial Upgradation because of not being mentioned in the MACP guidelines. Similarly, NFU is also not mentioned in the MACP guidelines and hence, not to be considered as MACP upgradation like other upgradations are also not considered.

35. The replacement of words ‘GRADE PAY’ in para 1 of Annexure to DOPT OM Dt. 19.05.2009 from ‘GRADE’ in the Resolution dt. 29.08.2008 is arbitrary. Accordingly, in para 1 of the DOPT OM dt. 19.05.09, the words '10 years of continuous stay in grade pay' should be '10 years of continuous stay in a GRADE' as per the Resolution.

36. Here is the RESOLUTION of Govt. of India after 6th CPC

 

 

                       

According to the Govt. Resolution,

A.      There will be three upgradations under (Modified) ACP scheme. (1 above)

B.      The financial upgradation will be available after 10, 20 and 30 years of service whenever a person spent 10 years continuously in the same grade. (iv above)

C.      There is also no mention that NFU/NFS granted after 4 years of service as the part of pay scale would be treated as Financial Upgradation under MACP Scheme.

However, the DOPT OM changed the para (iv) of the resolution as follows.

1.       There shall be three financial upgradations under the MACPS, counted from the direct entry grade on completion of 10, 20 and 30 years service respectively. Financial upgradation under the Scheme will be admissible whenever a person has spent 10 years continuously in the same grade-pay.

From the above, it is evident although the intention of Govt. is to give financial upgradation under MACP scheme after 10 years of continuous stay in the grade. But DOPT changed this to 10 years of continuous stay in the grade pay.

37. The 6th Central Pay Commission, on the recommendations of which the MACP Scheme was introduced, very specifically said under para 2.2.19.x that the grade pay of Rs. 5400/- in PB2 and PB3 is one and same. The 6th CPC made following observation and recommended:

“The scale of Rs. 8000-13500/- is the entry grade for Group A posts for which the Running Band PB-3 has been recommended. Many Group ‘B’ posts had been extended the scale of Rs. 8000-13500/- even though these continued to be Group ‘B’ posts. All such Group ‘B’ posts shall now be placed in the running band PB-2 alongwith a grade pay of Rs. 5400. To ensure that existing parity in terms of pay scale of these posts vis-à-vis the entry scale of Group A posts is not disturbed, the same grade pay of Rs. 5400/- has been prescribed.”

38. The 7th Central Pay Commission also observed and reported very specifically under para 7.1.4.b that the Grade Pay of Rs. 5400/- in PB2 and PB3 is common (one and same). Based on this para, Level-9 and Level-10 have been introduced by the govt to undo the pecuniary difference of Rupee zero between the Grade Pay of Rs. 5400/- in PB2 and PB3.  The 7th CPC made following observation and recommended:

“In so far as the non-functional upgrade is concerned, in the newly restructured pay matrix the earlier situation of a common grade pay i.e., 5400 prevailing in PB2 and PB3 has now been rationalized. Accordingly, the non-functional upgrade will henceforth be from level 8 to level 9. In the case of all such cadres/services where non-functional upgradation is presently available across two levels, for example, from GP 4800 to GP 5400 (PB 3) the same will now be available across only one level for example, from GP 4800 to GP 5400 (PB-2) or in the new matrix from level 8 to level 9.”

39. The OM issued by DOPT vide No. 35034/3/2008-Estt. (D) Dt. 09.09.10 also clarifies at 3(B) that an officer appointed in pay scale of Rs. 5500-9000 (pay scale of our Inspector enhanced later to 6500-10500) would get-

(1) Ist ACP upgradation in Rs. 6500-10500 (pay scale of our   Superintendent later enhanced to Rs.7500-12000).

(2) IInd ACP upgradation in 10000-12500 equivalent to GP 6600.

(3) IIIrd MACP upgradation in GP 7600 in immediate next higher Grade Pay.

40. Thus, it is evident from the above submissions that-

(i) NFU/NFS granted after 4 years service as the part of pay scale can no way be offset with MACP upgradation.

(ii) GP of Rs. 5400 in PB2 and PB3 is one & same and can’t be treated separately because higher grade pay is to be given as MACP upgradation. GP of Rs. 5400 in PB3 is no way higher than the GP of Rs. 5400 in PB2.

40. In view of above, it is requested to kindly grant-

(i) GP of Rs. 6600/Level-11 & 7600/Level-12 as 2nd & 3rd MACP upgradation to all of our officers recruited/appointed as Direct Inspector in GP of Rs. 4600/Level-7.

(ii) GP of Rs. 5400/Level-10 & 6600/Level-11 as 2nd & 3rd MACP upgradation to all of our officers recruited at one level below the Inspector.

41. An early response in the matter is very much expected and requested.

Thanking you.

Yours sincerely,

                                                                                                                                                       

(HARPAL SINGH),

Secretary General.

Tuesday, 28 April 2026

Submissions to 8th CPC

 

SUBMISSIONS MADE TO 8TH CPC BY AIACTGEO

Answer to Q 1:

(A) PAY SCALE FOR CENTRAL GST SUPERINTENDENT: Central GST executive officers are backbone of Govt playing very important role in implementing GST policies and programs to ensure that the same reaches the citizens throughout the country to ease business and earn maximum revenue for Govt but very unfortunately they are lacking due pay packages & career prospects. They are looking after work of Central GST, IGST, land & air Customs etc. Pay is the foundation of dignity, motivation & efficiency in Public Service. 8th CPC must kindly ensure that real wages are protected and reasonably enhanced and not merely adjusted. Central GST Superintendent should get at least the pay being received and to be received by their counterparts of State GST and also counterparts of CBI, IB etc. having historic parity, if not more than them. The Hon’ble Supreme Court in the judgment dated 09.11.2023 passed in Civil Appeal No. 1663 of 2016 also held that employees with historical pay parity have to be treated at par without discrimination.

Superintendent of Central GST is a Group B Executive Gazetted post in the hierarchy of CBIC and has been placed far behind in the matter of pay & career prospects in comparison to other analogous counterparts in CBI, IB, Enforcement Directorate, CSS, DANICS, DANIPS, Customs cadres etc. despite having well established historic parity with them and despite performing the most important work of maximum revenue collection for govt and also performing works like intelligence, investigation, enforcement, arrest, prosecution, adjudication etc. Thus, the work of the Superintendent requires specific expertise. The officers from no other department are entitled to work on this post on deputation for the want of the required specific expertise whereas Superintendent of GST is entitled to go on deputation to other departments because of having all round expertise & required knowledge. Every Superintendent performs his/her work responsibilities at the cost of life of self as well as family being countered with the hardcore & dreaded smugglers, white collared criminals, chronic habitual offenders of law etc. including other hard core criminals. Superintendents are dealing with and are responsible for strict implementation of several Acts having bearing on levy & collection of revenue. A few of such Acts are annexed as pdf as Document 1.

The jobs performed by Superintendents in the fields for prevention of smuggling and fighting against smugglers & drug traffickers both on land & boarders entail risk of life and are completely hazardous & arduous by any standards.  Their duties & responsibilities are more hazardous & arduous than DSP/ASP of CBI & DCIO/AD of IB or any comparable post of any other Department. The salary of any officer should commensurate with his/her job. 5th CPC also expressed its view that equal pay for equal work, fair comparison & intrinsic value of job should be the major principles/criteria for pay determination.

Superintendents of Central GST (earlier Central Excise & Service Tax) have been discriminated against the similarly placed officers working in other departments in the matter of pay scale & career prospects both. The importance of an efficient workforce for tax administration is well recognized by different tax reform committees including Dr. Raja Chaliah committee. The said committee in para 10.2 observed that the Govt should recognize the paramount importance of Revenue Department and should spare no efforts in improving their conditions of service, technical skill and work environment. Further in para 10.3, the committee observing and taking into account the vital role of the Revenue Department played in garnering adequate resources for ensuring the security of the Country as well as substantial economic growth with social justice recommended that the salary scales and promotional prospect of the officers and staff in the Revenue Department should at least be comparable with the best that Govt offers to its employees. But very unfortunately, no consideration has been given to above recommendations. In many developed countries, Revenue Officers are treated differently in the matter of pay and other benefits.

The parity of Central GST Superintendent in pay scales has been disturbed by govt with various analogous/comparable/equivalent cadres/posts despite of the recommendations of the various pay commissions starting from 1st to maintain parity like DSP of CBI, DCIO of IB, Section Officer of CSS in matter of time scale, Group ‘B’ gazetted officers of DANICS & DANIPS in matter of time scale, Chief Enforcement Officer, Senior Audit/Accounts Officers etc. and despite of having well established historic parity in pay. They have also been discriminated in r/o Group B gazetted officers of state GST and other state services who are also getting higher pay scales than them. The comparable & analogous Group B Gazetted officers of various States GST are being placed since very beginning in an initial pay scale of Rs. 8000-13500 equivalent to Level 10 but, very disappointingly, the Central GST Superintendents are being placed merely in a pay scale equivalent to Level 8. If the Group B Gazetted officers of State GST have been getting a pay scale of Level 10 or its equivalent, it is gross injustice to the Central GST Group B Gazetted officers, i.e., Superintendents of Central GST, to grant them a lower pay scale. Both categories are doing same job under GST with provisions of cross empowerment governed by one & same GST council. Rather, Central GST Superintendents are doing more work including IGST, Customs, Central Excise legacy work etc. Not only higher scale, Group B Gazetted officers of State GST were later were upgraded in designation by one step by the method of redesignation.

Central GST Superintendents are not only performing the executive & administrative duties but they are also performing the judicial duties which are not being performed by any of the Group B gazetted officers or above mentioned central govt counterparts of them. They are doing the work of Executive Officer, Preventive Officer, Administrative Officer, Assessing Officer, Registration Granting Authority, Examining Authority, Quasi-Judicial Authority, Summons issuing & Statements recording Authority (statement recorded before them is a valid evidence in a Court like a Magistrate unlike recorded by Police Authority), Controller of Drug Trafficking & Smuggling, Accountant, Chemist, Advocate, Judge, Scientist, Technical Officer, Police Officer etc. due to their work profile requiring high expertise. Keeping in view the nature of their duties & work responsibilities, they certainly deserve the better treatment than any of their counterparts in the matters of pay & career prospects.

Ministry of Finance has clearly stated, "in no two organisations, the assigned duties of comparable posts can be totally identical and so is in the case with Gazetted Executive Officers of CBI, IB, Central Police Organisations, Enforcement Directorate, Customs, Income Tax & Central Excise. However, 1st, 2nd, 3rd, 4th & 5th CPCs have established the comparable nature of the level of responsibilities assigned to the Gazetted Executive officers of each of the categories mentioned above by assigning identical pay scales to them. This was also upheld by the High Power Committee set up by the then Finance Minister on the subject.” Report of High Power Committee is at pdf as Document 2.

Pay scale of Deputy Superintendent (DSP) of CBI was upgraded without recommendation of CPC by the Govt during 1996 retrospectively from 01.01.86 equivalent to GP of Rs. 5400/- in PB3. Pay scale of DCIO of IB was also upgraded by Govt during 1996 to same level. Chief Enforcement Officers have also been placed under a pay scale of Rs. 8000-13500/-. All above three pay enhancements were done by disturbing well established historic parity and without upgrading the pay scale of analogous post of Superintendent of Central Excise/GST. Chief Enforcement Officer and Central Excise/GST Superintendent were not placed under same pay scale despite of the very specific recommendations of 6th CPC in para 7.15.24 that their parity is well established and should be maintained in future too. Therefore, Superintendent of Central Excise/GST, being an analogous post to Deputy Superintendent of CBI etc., is entitled to get the pay scale equivalent to them w.e.f. the date of disturbing the historic parity. Post of Inspector of Central Excise/GST is feeder grade for the post of Superintendent of Central Excise/GST and, likewise, Inspector of CBI is feeder grade for the post of Deputy Superintendent of CBI. The Govt has granted pay scale of Level 8 to Inspector of CBI. Hence, there is no justification of keeping Central GST Superintendent under a pay scale of Level 8.

Personnel of Central GST & Customs are deployed on borders (Pakistan, Bangladesh, Nepal, China, Myanmar etc.), International Airports and International Sea Ports. They are also actively engaged in counter insurgency operations against dreaded smugglers, hard core criminals etc. within the country and have suffered heavy casualties while dealing with trans-border crimes and countering with dreaded smugglers. Their duties are akin to Army and they are responsible not only for guarding the Economic borders of the Country but also for security of the Nation. In fact, in J & K and North Eastern states of India, they are deployed side by side with Army, BSF, CRPF & ITBP on same location. They perform their duties in the most adverse conditions coupled with threat to lives of them & their families by enemy action, insurgents, dreaded smugglers, hard core criminals & the climatic hazards. In spite of the fact that their service conditions are akin to Central Police Organisations, CBI, IB & Defence Armed Forces, they are not compensated with any additional incentives or allowances as in the case of CBI, IB, Police, Army etc.

Superintendent of Central GST is analogous to the post of Deputy Superintendent of CBI & DCIO of IB but the higher benefits granted to later ones apart from higher Group A salary, one month additional pay in the year, 25% extra salary per month etc. are not granted to Superintendent of Central Excise/GST. The decision of the Govt placing DSP of CBI & DCIO of IB etc. above the Superintendent of Central GST was discriminatory, arbitrary, illegal & unjust and carried no reason or substance. Historic parity was ultimately broken by such unwarranted decision of Govt. In the case No. Appeal (Civil) 5866 of 2000 of the State of Utter Pradesh Vs. UP Sales Tax Officers Grade II Association, the Hon’ble Supreme Court ruled, "Officers who were carrying pre-revised scale could not have been discriminated vis-a-vis the officers who also carried the same pre-revised scale of pay". High Power Committee has already stated that there was no change in the duties and responsibilities of CBI officers with effect from 01.01.1986. Therefore, there was no justification not to enhance the pay scale of Superintendent of Central GST at par with the DSP of CBI etc. from the same date with all perks & incentives etc. given to DSP of CBI.

High Power Committee report dated 03.08.1998 unequivocally held the post of the Superintendent of Central Excise/GST as analogous & comparable to the post of DSP of CBI & DCIO of IB but a lower scale of Rs.7500-12000 instead of Rs. 8000-13500 was recommended for the Superintendent on the ground that the Customs Appraisers are recruited through the same Civil Service Examination by which Group A IRS officers are recruited and giving the pay scale of Rs. 8000-13500 to them alongwith the Superintendent of Central Excise/GST will create difficulty from the operational point of view in the matter of fitting them into overall structure of the department. In this regard, it is worth to submit that the provisions of direct recruitment of Appraisers have already been abolished in the year 2001 vide Union Cabinet order F. No. A-568(1) OMS/ 2001 dated 03.08.01, i.e., after submission of High Power Committee report. As the direct recruitment of Appraiser has already been abolished, there should have been no difficulty in retaining the parity in the pay scales of analogous posts of Central Excise/GST Superintendent and DSP of CBI by granting the pay scale of Rs. 8000-13500/equivalent to the Superintendent of Central Excise/GST from the date since when it was given to earlier category.

Another reason cited for not granting the scale of Rs. 8000-13500 to Superintendent though granted to other analogous posts was that the same would disturb the horizontal relativity since Superintendent is feeder cadre to organized Group A service bearing pay scale of Rs. 8000-13500. If that be the reason, a de-linked service for the officers joining in the scale of Inspector should have been created interfacing above the present level of Assistant Commissioner. Superintendent of Central Excise/GST may be promoted directly to STS post of Deputy Commissioner like many other departments of Central Govt. including CSS, DANICS, DANIPS, CPWD etc. as well as State governments where Group B gazetted officers are directly promoted to STS post. The JTS post of Assistant Commissioner should only be earmarked for direct Group A officers recruited through UPSC. The system of a parallel service is already in vogue in CSS, DANIPS, DANICS, CPWD, State Services etc. where officers belonging to Group B move parallel alongwith officers of All India Service/Organized Group A Service upto a certain level and then interface with them.

In view of above submissions, Central Excise/GST Superintendent deserve and should kindly be granted the pay scale of the analogous post of DSP of CBI etc. alongwith other perks and benefits w.e.f. the date since when the same was granted to the latter category. This will also maintain historic parity including with DCIO of IB, Chief Enforcement Officer & State GST counterparts.

The observations of the Hon’ble Supreme Court in Bhupendra Nath Hazarika Vs State of Assam highlights that the legitimate aspirations of employees should not be frustrated and that the govt must act as a model employer by ensuring fairness, trust and transparency in its treatment to employees. The current Minimum Pay is inadequate and must ensure a decent standard of living and not mere subsistence. Accordingly, minimum pay should be Rs. 80,000 & fitment formula for the existing employees and pensioners should be at least 4.

Rate of annual increment should be increased from the existing 3% to at least 6%. Level 9 & Level 10 pay scale should be merged into one pay scale at level 10 and Central GST Superintendents should be placed in this scale at least.

The gap between minimum and maximum pay should be balanced to avoid excess disparity. The ratio should not be more than 1:10. This will help in reducing income inequality, improving morale and reinforcing the Govt role as a model employer committed to fairness & social justice. There should not be wide gaps between pay scales to maintain structural balance. There is a strong need for periodic pay & pension revision, ideally every five years, to maintain adequacy & relevance. The 7th CPC under Para 1.29 emphasized that govt service is not merely contractual but carries a status with expectations of fairness & dignity. Further, the Hon’ble Supreme Court in Bhupendra Nath Hazarika vs State of Assam observed that legitimate aspirations of employees should not be frustrated, Govt must act as a model employer and fairness, transparency & trust must guide employer-employee relations.

Fixation of salaries & allowances should not be guided solely by revenue expenditure considerations. It must take into account their critical role in nation building, need to attract & retain talent and broader economic benefits of higher wages. A fair, transparent & dynamic pay structure supported by a permanent pay review mechanism is essential to ensure motivated, efficient & accountable public service. All Central Govt employees may be exempted from Professional Tax as already the employees are subjected to payment of Income Tax and GST etc. 8th CPC may also kindly recommend for exemption of Income Tax from the pensioners who are forced to survive with about 1/3rd of salary as pension for the want of various allowances and & magnitude of basic pay as basic pension. Accordingly, family pensioners are forced to survive even with 1/6th of salary as family pension.

(B) TIME SCALE TO CENTRAL GST SUPERITENDENTS: The time scale has been granted in PB3 to other counterparts including CSS, CSSS, Railways, DANICS, DANIPS etc. while it is merely in PB2 for Central Excise/GST Superintendents. It was granted to CSS, CSSS etc. officers since 1996 in 5400 PB3/equivalent scale whereas since 2006 in 5400 PB2 to Central Excise/GST Superintendents in a very discriminatory manner. Superintendents of Central Excise/GST were placed under the pay scale of Rs.7500-12000 w.e.f. 21.04.04 while the officers of CSS & CSSS were placed under the equivalent scale w.e.f. 01.01.06 to bring them at par with Superintendents justifying the stronger claim for Superintendents to be placed under a time scale in PB3 w.e.f. the date since when the officers of CSS & CSSS were placed under the Group A time scale of Rs.8000-13500 to maintain the historic parity. The claim of the Superintendents becomes even stronger on account of the judicial responsibilities conferred on them to adjudicate cases & recording statements like a Magistrate having validity even before the Supreme Court. No such responsibility has been conferred on any Group B Gazetted officer of Central Govt.  

Officers of equal rank & status of Department of Revenue working in CBIC have not been treated at par with officers of equal status & rank of CSS working on analogous posts in headquarters offices and having historic parity despite of 6th CPC recommendations for equal treatment to Hqrs and field officers vide chapter 3.1 of its report. Due to this disparity & discrimination, the officers joining as the Inspector of Central Excise/GST get first MACP upgradation in the GP of Rs.4800/Level 8. They get 2nd MACP upgradation or time scale in GP of Rs.5400 in PB-2/Level 9 which is counted as one MACP upgradation without any valid reason and despite of fact that nothing such was recommended by CPC or notified in gazette notification by govt or mentioned in MACP OM. After completion of 30 years of service, they get the 3rd MACP upgradation in same grade pay of Rs.5400 in PB-3 (now Level 10) while they were able to get the same only after 24 years of service under the original scheme of ACP. On the contrary, their common entry counterparts of CSS and other organisations are able to get higher GP of Rs. 6600/Level 11 or 7600/Level 12 under MACPS after completion of 30 years.

Reason of this serious disparity is the direct promotion of group B gazetted officers of CPWD, CSS & CSSS etc. to a post in GP of Rs. 6600/Level 11 contrary to the promotion of group B gazetted officers of field formations under CBIC to merely a post in a GP of Rs. 5400/Level 10. This disparity also needs an immediate remedy by promoting the Superintendents directly to a post in GP of Rs. 6600/Level 11.

Govt created two classes in the grade of Superintendent without considering recommendations in para 7.15.24 of 6th CPC. Pay scale of Rs. 7500-12000 revised to GP of Rs. 4800/- in PB-2 to the Superintendents having less than 4 years of service and GP of Rs. 5400 in PB-2 to having completed 4 years of service w.e.f. 01.01.06. It is, therefore, requested to award the GP Rs. 5400 in PB-3, i.e., Level 10 to them at par with DSP of CBI etc. with a provision to grant next higher GP/pay scale of Level 11 as Time Scale on completion of 4 years of service since the date of grant of initial pay scale of Rs. 8000-13500 to DSP of CBI. 

Answer to Q 2:

All allowances including DA must remain fully indexed to inflation. All allowances should be linked with DA rise for automatic adjustment with inflation. Allowances are essential components of compensation and must be protected and periodically revised.  

(A) Dearness Allowance: The actual price is not taken into account while calculating the Consumer Price Index (AICPI) as there are about 463 items which are used for arriving the Consumer Price Index, if the few items’ price rise takes place and other items show negative Price Rise, as a whole its effects get neutralized. The present calculation of average 12 months should be replaced by 6 months average as the DA is paid once in 6 months. The consumption pattern of Central Govt employees differs from that of industrial workers. Therefore, a separate consumption basket representing govt employees should be constructed with appropriate weights for essential expenditure heads such as food, housing, education, healthcare, transportation etc. Price data should be collected from open retail markets and cooperative outlets to ensure that the index reflects the actual prices paid by consumers rather than administratively determined prices.

Point to point DA should be provided as now DA is rounded off to lowest value. If the employees are eligible for 55.95 % DA, the DA sanctioned is only 55% DA. The prices should be calculated based on Market Rates and not on Govt Rates which varies up to 25%. 8th CPC may kindly recommend to merge, if the DA/DR crosses 25% with Basic Pay and Basic Pension.

(B) Allowance Related to Qualifications: Any Central Govt Employee acquiring Additional Qualification over and above the prescribed qualification for the concerned post as per RRs may be given 10% of Basic Pay as Additional Qualification Allowance.

(C) Allowance Related to Additional Duty or Extra Duty or Working on Holidays, etc. Due to shortage of manpower and to meet the targets in all offices, employees are asked to overstay and work for additional hours without any compensation. Employees who are governed under the Factories Act 1948 are entitled for OT Wages at double the rate for extra hour. Employees who are not governed under the Factories Act 1948 may also be provided Overtime at double Rate on their Basic Pay and DA for every hour of extra work done over and above the actual working hours. Additional post allowance may also be paid at the rate of at least 15% of basic pay and DA for every additional charge.

(D) House Rent Allowance (HRA): In view of the sharp rise in Housing costs and the mismatch between HRA and the actual prevailing Market Rent the following revision are proposed.

 

Population of Cities

Class of City

Proposed of HRA (% of Basic Pay)

50 Lakhs and above

X

40%

5-50 Lakhs

Y

35%

Below 5 Lakhs

Z

30%

 

Further, HRA should be indexed to Dearness Allowance so that it automatically adjusts with inflation. The Classification of cities should also be reviewed every Five Years to reflect changing population and housing conditions.

Payment of HRA to the Pensioners & family pensioners may also kindly be considered since they are facing hardships to lead a decent life after the retirement since a major portion of the pension is utilized for paying House Rent and medical treatment.

(E) Allowance Related to Risk and Hardship: The employees working in Central GST, Customs, Railways, Defence Industries Manufacturing/repairing/Servicing/Handling of Arms, Ammunition, Chemicals, Weapons etc. are subjected to High Risk and Hazards due to their nature of work. It is worth to mention that the personnel working in Central GST and Customs always have threats to life and property of self and family from hardcore criminals, smugglers and white collar criminals. All of such employees may kindly be paid Minimum Rs.10,000/- per month as Risk and Hardship Allowance and the same should be linked with DA rise, so that it automatically adjusts with inflation.

(F) Transport Allowance: The 8th CPC may consider increasing the Transport Allowance by at least three times of the existing rates and also consider for restoration of City Compensatory Allowance which was abolished. The same should be linked with DA rise, so that it automatically adjusts with inflation.

(G) Travelling Allowance/Conveyance Allowance: In majority occasions, employees are deputed on duty in short notice and they struggle for getting confirmed reservation in their entitled class in the Train. Therefore, all Central Government Employees irrespective of the post/grade should be made eligible for Air Travel while deputed on Temporary Duty. Similarly, all employees should be entitled for AC Taxi for Road Travel as Non AC vehicles are not available and the weather conditions are very acute now a days.

(H) Daily Allowance: Considering the steep escalation in Hotel Tariffs, Food Costs etc., the existing rate of Daily Allowance may be increased at least by three times and the same should be linked with DA rise, so that it automatically adjusts with inflation.

(I) Hospital Patient Care Allowance/Patient Care Allowance/Nursing Allowance:  This allowance may be enhanced by at least 3 times and the left out categories working in hospitals/dispensaries such as Industrial employees and Ministerial Staff etc may also be included. The same may be linked with DA increase.

(J) Cooking Allowance: At present Cooks working in Departmental Canteens are paid Rs.1000 per month as cooking allowance. However the same is not being paid to the cooks of Industrial Canteens/Statutory Canteens etc. This allowance may kindly be enhanced to at least Rs. 3000 and the same may be extended to all cooks of Central Government without any discrimination. The same may be linked with DA increase

(K) Allowance related to Sports: Regular participation in sports improves physical fitness, reduces lifestyle diseases, enhances mental resilience and lowers stress levels. A healthier workforce leads to reduced absenteeism, improved efficiency and concentration and lower long-term healthcare expenditure. Govt service often involves high levels of responsibilities, public interaction and administrative pressure. Sports activities provide a constructive outlet for stress improving morale and work-life balance. A structured sports allowance encourages employees to maintain a healthy balance between professional duties and personal well-being leading to higher job satisfaction.

The existing limit of not more than 5 additional increments during entire service for Sports Persons achieving laurels at National & International Level may be removed and every time sports person achieves such laurels, additional increments may be given without any restriction. The existing incentive being granted to the Team Managers, Coach, Masseurs, Doctors etc may be enhanced at least by three times.

(L) Dress Allowance: Dress allowance may be provided to all Central Govt Employees including Industrial Employees and the existing rate may be increased at least by three times and same should be linked with DA rise, so that it automatically adjusts with inflation.

(M) Night Duty Allowance: Night Duty Allowance should be paid on the actual Basic Pay and DA of the Central Govt Employees without imposing any Basic Pay ceiling as decided by the Hon’ble Supreme Court.

(N) Children Education Allowances: CEA may kindly be reimbursed upto Post Graduation level in Arts, Science, Commerce and in all Professional Courses like MBA, MBBS, MD, MS, B Tech, M Tech etc. on actual basis considering the highly escalating cost of education, hostel fees etc. and also the most of the schools mandate that uniform/note books/text books etc should be purchased from them directly which is significantly higher than market price. Hostel subsidy may also be on actual basis. CEA and Hostel Subsidy should be linked with DA rise, so that it automatically adjusts with inflation.  Hostel subsidy may also be extended if the children study in a particular school but staying in a different Hostel. At present, only two surviving children are eligible for CEA. There are cases that a child is physically/mentally incapacitated to attend school and due to various other reasons. In such cases if a third child is there, that child may also be granted CEA. As regards Divyang Children, reimbursement should be double the above amount proposed for normal children.

(O) Special Allowance for Child Care to woman with disability: The existing special allowance for child care to woman with disability may be increased by three times and same should be linked with DA Increase.

(P) Special Allowance and CCL for Central Govt Employees having Children with Attention Deficit Hyperactivity Disorder (ADHD), other Neurological Disorders and physically incapacitated etc: Considering the increase in such children, the parents of such children may be provided a monthly Special Care Allowance of at least Rs.30000 and an entitlement of CCL for Female/Male employees even if the spouse is not employee.

Answer to Q 3:

Considering the High Interest Rate being charged by the Nationalized Bank and other Private Banks for various Loans, Central Govt Employees as a welfare measure may kindly be given various advances without any interest including those advances which are withdrawn. Govt as a model employer should not recover any interest from its own employees for the various essential advances given to them.

(A) Personal Computer Advance: All the Govt Employees irrespective of rank and grade may kindly be given Personal Computer Advance as per the actual cost subject to a maximum upto Rs.250000. This advance should be interest free.

(B) House Building Advance: Non-Availability of Housing Accommodation in all Towns and Cities of India has become a major problem. The rent per month even for a modest accommodation is beyond the capacity of the Govt Employees. House Building advance encourages the employees to construct own house at fairly early stage of employment. Therefore, considering the escalating cost of housing in the Country, the HBA may kindly be sanctioned as actual cost of the house/flat subject to the maximum of Rupees Five Crores. The entire advance may be interest free. In case of sudden death of the employee, as many state government are doing, the recovery of the balance amount of HBA should be written off and no recovery should be made from the Terminal Benefits of the family of deceased employees. Same benefit may be extended to those employees who are medically invalidated/boarded out from service due to medical/health reasons.

(C) Four Wheeler Advance: At present, Four Wheeler is not considered to be a luxury, rather it has become an essential vehicle for everybody to travel with family. Therefore, interest free Four-Wheeler Advance with a maximum of Rs.2000000 may kindly be sanctioned.

(D) Natural Calamity Advance: Different parts of the country are facing Natural Calamity due to unprecedented rains, floods, cyclone and drought etc., Previously, the Central Govt Employees were eligible for Natural Calamity Advance. However, the same has been withdrawn. The Natural Calamity Advance without interest may kindly be restored. At least One month Basic Pay to be recovered in 24 instalments may kindly be recommended.

 

(E) Festival Advance: In the Standing Committee Meeting of the National Council (JCM), it was agreed by the official side to consider the restoration of the Festival Advance. However, the same has not been restored yet. In a country like ours, every religion/community has to make festival celebrations etc. Considering the expenditure involved in all these festival celebrations, the restoration of Festival Advance equivalent to one month Basic Pay to be recovered in 24 instalments may kindly be recommended.

Answer to Q 4:

Various Facilities are the back bone of the social security and must be strengthened. Facilities ensure dignity, reduce stress and improve productivity. Strengthening them supports an efficient work force.

(A) Leave: A fair and human leave policy is essential for maintaining the physical, mental & social well-being of employees. Govt employees work under demanding administrative conditions and often face social, family & health related responsibilities. Therefore, the leave framework should adequately support employees in managing personal contingencies while maintaining work place productivity.

(i) Casual Leave: Casual Leave to be restored to 12 days per year for all Central Govt Employees. For employees working in Industrial Establishment and entitled for 16 Holidays (including 3 compulsory holidays) in a year should be entitled for 15 days per year.

(ii) Earned Leave: The present ceiling of Earned Leave (EL) accumulation may be removed and encashment may be enhanced from the existing 300 days to 600 days. The Govt employee may be permitted to encash part of such accumulated leave say 50% to meet certain financial exigencies if he/she has put in 20 years of service or more. Ex-service men after joining as civilian employee should also be permitted encashment of EL as above. 20 days EL encashment may be allowed every time the employees avail LTC.

(iii) Half Pay Leave:       The Half Pay Leaves at the credit of an employees may be allowed to be encashed at the time of superannuation/retirement in full..  Half Pay Leave may kindly be permitted to be commuted without condition of producing Medical Certificate.

(iv) Maternity Leave:     The entitlement of Maternity Leave may be increased to 240 days and the restriction imposed to only 2 surviving children may be withdrawn in accordance with the Maternity Benefit (Amendment) Act 2017. In case of surrogacy, it should be 240 days for both the surrogate and the commissioning mother with upto two surviving children if either or both are Govt Servants. Miscarriage/abortion leave should be enhanced to 120 days in the entire service.

(v) Special Maternity Leave: It may be increased to 120 days from the date of expiry of the child. In case maternity leave has already been availed and her leave continues till the date of expiry of child, the Maternity Leave already availed till the death of the child may be allowed and thereafter the Special Maternity Leave of 120 days may be granted from the date of expiry of child. All other existing conditions may be removed.

(vi) Paternity Leave: Male Govt servant without any restriction of the number of children may be sanctioned 45 days Paternity Leave before or upto 6 months from the date of delivery of the child and for 45 days within 6 months from the date of adopting the child.

(vii) Leave to female Govt Servant on adoption of Child:       Present limit of 180 days may be increased to 240 days. The limit of adoption of one year child may be increased to at least Five-year child.

(viii) Child Care Leave: The condition of 2 surviving children for availing CCL may be removed. CCL may be granted for at least 6 spells in a calendar year and in case of single female Govt employee, the grant of leave shall be extended to 12 spells in calendar year. The age limit of the children for grant of CCL may be enhanced from 18 years to 25 years age since upto this age children are dependent on the parentss in the most of the cases.  The condition imposed that CCL salary shall be paid at 80% instead of 100% for the next 365 days should be removed. No restriction should be imposed on age of the child for grant of the leave especially in the case of children with mental or physical disabilities or of prolonged illness. A women employee also must be allowed to avail the CCL for her own biological disorders.

(ix) Work related illness and injury leave: The condition that in the case of persons to whom the Workman Compensation Act 1923 applies the amount of leave salary payable under WRIIL shall be reduced by the amount of compensation payable under the Act and no earned leave or half pay leave will be credited during the period that the employees is on WRIIL may be withdrawn because it is causing hardship to the employees for no fault of theirs.

(x) Special Leave for Union/Association activities and other purposes: The existing ceiling limit for grant of Special Casual Leave may kindly be removed. Special Casual Leave for differently abled Central Govt Employees may be increased from the present 10 days in a Calendar Year to 20 days. Special Casual Leave may also kindly be sanctioned for Central Govt Employees who are Cancer Patients and subjected to Chemotherapy/Radiotherapy. The employees who are subjected to Dialysis may also be granted 45 days Special Casual Leave in a year.

(xi) Menstrual Leave: To support the health and wellbeing of women employees, three days of special leave per month may be granted in connection with the menstrual cycle. Some states, such as Karnataka and Kerala, introduced policies in 2025 providing paid menstrual leave per month for women employees in both public and private sectors. Similar progressive provisions may kindly be considered for Central Govt Employees.

(xii) Parents Care Leave: Considering the provisions of Maintenance and Welfare of Senior Citizens Act 2007 and also the fact that it is the duty of the children to take care of their parents especially when they are at their ripe age and facing health related and old age related problems, 60 days parent care leave during the entire service may kindly be recommended.

(xiii) Special Leave for Hysterectomy: Many women employees undergo Hysterectomy particularly after the age of 40 which requires adequate recovery time. A provision for one month of special leave may be introduced to support women employees undergoing this medical procedure.

(B) Late attendance to be cumulatively calculated for deduction of Half Day CL: At present Half Day CL is debited from the CL account for each late attendance upto an hour for not more than 2 occasions in a month. Considering the present huge traffic conditions in almost all the cities and also the fact that Biometric attendance system is implemented in all the Central Govt Establishments, the above provision may be amended that late attendance upto 180 minutes (3 Hours) in a month may be condoned. Half day CL may be deducted for late attendance after this 180 minutes grace period, if the employees is late on three occasions.

(C) Holidays: Other then three National Holidays all other holidays may be left to the State Level Central Govt Employees Welfare Committees to decide aligningwith the particular state Govt holidays and cultural needs.

(D) Leave Travel Concession (LTC): It is a facility which encourages employees to take holidays to visit various places which will rejuvenate them and the Govt will be benefited through their increased productivity. Certain further relaxations and improvements may kindly be made in the existing LTC Scheme such as:

a)       LTC to Home Town should be admissible once in a year.

b)       LTC to visit any place in India should be in a Block of two years instead of four years. LTC to visit any place out of India should also be allowed in a Block of 8 years.

c)       LTC by Air may be permitted from the nearest Airport to the Office/Duty Spot/residence to travel anywhere in India to all Central Govt Employees.

d)       Employees after 20 years of service may be granted LTC on two occasions before retirement to visit foreign countries.

e)       Parents in Law also may be extended the benefit of LTC as family member.

f)       20 days EL encashment may be allowed whenever the employees avail LTC.

g)       The pensioners may also be allowed to avail LTC in every two years block anywhere in the country and at least twice anywhere in the world after retirement.

(E) Group Insurance including CGEGIS: Despite the recommendations of 5th, 6th & 7th CPC to enhance the insurance coverage government did not change the scheme at all. So, the rate of insurance cover may kindly be changed as under:

 

Category

Rate of Subscription per month

Insurance Cover

Group A

Rs.3000

Rs. 3 Crore

Group B

Rs.1500

Rs.1.50 Crore

Group C

Rs.1000

Rs.1 Crore

 

(F) Ex gratia for employees killed in accident while on duty: At present the Central Govt Employees who die in the performance of their Bonified Official duties due to accidents is Rs 25 lac. In the Defence Industries especially in Ordnance Factories, the employees are dealing with Arms, Ammunition, Explosive, RDX and various other hazardous materials including Acids and Chemicals etc. These accidents take place frequently and there are many fatal accidents which took place during the past few years. However, employees killed in these accidents while performing their duty are paid only Rupees 25 Lac as Ex-Gratia. This is not a proper compensation for a worker who sacrificed his/her life for the Nation. Similarly, in Railways every year hundreds of Railway men are killed in accidents while on duty. Therefore, the Ex-Gratia payment for death occurring in course of performance of duties should be increased to Rupees Two Crore and be given to the employees of every department.

(G) Medical Facilities: Right to Health is an essential component of the right to life with dignity. Adequate Medical Care ensures not only meaningful existence but also the physical & mental wellbeing of employees and pensioners. Therefore, all the Central Govt Employees and Pensioners should receive equitable health care facilities without discrimination and they should be ensured Cashless Treatment Facilities. As recommended by the Parliamentary Standing Committee, every district Headquarters should have a CGHS Wellness Centre. More and more Multispecialty Hospitals in all the Cities and Towns should be empanelled by the CGHS. Required number of Doctors and other Para Medical Staff may be posted in all the Wellness Centres. The Treatment/Diagnostic cost/charges should be revised periodically and no hospital should charge over and above the prescribed rates from the employees and pensioners/family pensioners. To address these challenges, 8th CPC may kindly recommend for immediate expansion of CGHS Wellness Centres to at least every district headquarters and every other city/town which fulfils the already prescribed minimum criterion for the purpose. At other cities/towns, AMA should be appointed, so that patients are nor forced to visit CGHS centre to a city/town out of their station. If they have to move out of station for the purpose, actual expenses may kindly be reimbursed to them. For Medical procedure/Medical Treatment, whenever a new procedure is done based on the recommendation of AMA/CGHS Specialist etc, its actual cost may kindly be reimbursed.

The Cashless Treatment Facilities should be extended to employees covered under CGHS and CSMA Rules and also Pensioners. Cashless system will ensure timely access to treatment, financial security and reduction in administrative burden etc. The parents/parents-in-laws, irrespective of the income limit, should be dependents of the Govt employee for medical treatment. Under CS (MA) Rules, Govt employees and pensioners and their families are to be given free medical treatment. However, the employees under CGHS are forced to pay contribution every month depending upon the Pay Level. Pensioners have to pay 120 months contribution for getting a pensioner CGHS Card with life time validity. Central Govt employees & pensioners may be exempted from this contribution. 

The Pensioners governed under Railway Health Scheme (Retired Employees Liberalized Health Scheme) also faces the same problem. We propose modernization of all Railway Hospitals with advanced facilities, integrate RELHS and  Ex-Servicemen Contributory Health Scheme (ECHS) with CGHS and empanelled hospitals for specialized care. Employees who are at present entitled for semi Private Ward may be made entitled for Private Ward and employees who are eligible for General Ward may be made entitled for Semi Private Ward. We also propose that employees and Pensioners of Autonomous Bodies established by Acts of Parliament should also be given  CGHS facilities.

Parliamentary Panel recommended for increasing the FMA to Rs 3000 per month which the Govt has not implemented. We propose that due to continued inflation the allowance should now be revised at least to Rs.6000 per month. The FMA should be linked with consumer price index and whenever DA/DR is revised FMA should be automatically increased to maintain its real value.

Cashless Annual Medical health Check-ups for all Central Govt employees above 40 years of age through CGHS etc may be recommended at par with Group A Officers. The pensioners being more vulnerable to various deceases on account of old age, this should also be done for pensioners and family pensioners.

(H) Provident Fund including GPF: The Central Govt Employees governed under NPS/UPS may be given an option to enrol in GPF scheme till the Govt withdraws NPS/UPS. The deposit link insurance scheme under GPF should be enhanced to Rs. Twenty lac. The GPF Interest rate may be at par with EPF.

(I) Compassionate Appointment: The objective of the scheme is to provide immediate assistance to the family of a Govt Employee died in harness to tide over the sudden crises. It is to be viewed as a sacred assurance to an entrant in Govt service that if unfortunately, he expires while in service his family could not be left in lurch/in destitute conditions. DOPT has imposed a ceiling of 5% of vacancies in DR Quota in Group C for making appointment on compassionate grounds. This percentage is very negligible when compared to the rate of death especially after COVID 19 pandemic. Therefore, we propose to remove the 5% ceiling to ensure grant of compassionate appointment to all eligible persons within 3 months from the date of death of the employee. Compassionate appointment should also be given at least on Group B non-gazetted posts as per the eligibility conditions instead of limiting it to Group C posts. Daughter-in-Law of the deceased employee also may be considered for Compassionate Appointment.

(J) DATE OF EFFECT OF CPC RECOMMENDATIONS: The recommendations of the CPC are, at present, being implemented at a frequency of 10 years. But wage revision for employees/workers of various Central Public Sector Undertakings is being made at a frequency of 5 years. As such, the recommendations of 8th CPC should kindly be made applicable to the employees as well as pensioners/family pensioners w.e.f. 01.01.22 at least after a period of 6 years, if not from 01.01.21 after duration of 5 years.

(K) FREQUENCY OF PAY REVISION: The pay of the Central Govt. Employees may kindly be revised after every 5 years like PSUs etc. by setting the Pay Commission on the frequency of every 5 years.

Answer to Q 5:

(A) Variable Pay & Performance Pay: Any performance incentive should be over and above the assured elements of wages and other benefits the employees are otherwise entitled as an additional and supplementary benefit. PRI Scheme is in vogue in the Department of Atomic Energy & Space, however, the same is not extended to other employees. PRI Scheme may kindly be extended to all other employees also. Performance pay should focus more on team outcomes with clear Key Performance Index and safeguards against subjective approach as Govt Work is collaborative and collective. Therefore, a balanced approach should be there on performance related incentives which ensures motivation without compromising fairness.

(B) Bonus: The Payment of Bonus Act 1965 established the principle that Bonus is a deferred wage with a statutory minimum of 8.33 % wages. Even though the Act doesn’t directly apply to the Central Govt Employees, the Bonus scheme for them is derived from its principle only. At present two different systems operate, one is Productivity Linked Bonus Scheme applicable to employees in Railways, Defence Production Units, Naval Dockyards, Workshops and Depots under Army, Navy & Airforce, DGQA and DGAQA under DDP. Second is Adhoc Bonus (Non-PLB) applicable to other Central Govt Employees.

At present the Productivity Linked Bonus (PLB) and Adhoc Bonus is calculated on the Monthly Emoluments capped at Rs.7000/- for 30 days. This is an irrational stipulation and must be removed. The 8th CPC is requested to remove the said capping and grant the Bonus on the basis of actual emoluments (Basic Pay+DA) of the employee. Apart from it for the past few years, it is observed that the Defence Civilian Employees of Ordnance Factories, EME Workshops etc., who are governed under the PLB scheme, are getting PLB which is less than 30 days wages which is a clear violation of the Bonus Act and the Fundamental Principles of Bonus. It is proposed that the 8th CPC may kindly recommend that even in the case of PLB, the Minimum Bonus should not be less than 30 days emoluments. Even for the maximum number of days PLB, there is a ceiling fixed by the Govt in the case of Railways, Defence and Postal.  Such ceiling should also be removed. We also propose that considering the contribution of all category of employees, bonus may be paid to all employees irrespective of Rank and Post etc. 

Answer to Q 6:

Empanelment must be transparent, criteria based and free from bias considering experience, performance & expertise. Postings should ensure equal opportunity with transparent vacancy notification & fair selection. Personal circumstances should be considered and financial conditions must be protected. Additional concerns include protection of cadre interest, incentives for difficult postings and safeguards against arbitrary transfers. Transparency builds trust & motivation. Fair system ensures optimum utilization of talent and improves administrative efficiency.

Transfer Policy: Govt employees by virtue of the terms and conditions of employment are liable to be posted anywhere in India. The Group C & B employees in larger organizations have the facility of such transfer being restricted to a pre defined area or region or zone. But in smaller departments, they are transferred one corner of country to another.  Transfer especially when one is promoted from one grade/cadre to another is painful because it involves dislocation of the family with associated difficulties. It is a common knowledge that higher authorities often invoke the power to transfer as a potent weapon to punish their subordinates or to mentally harass them. Since the transfer is said to be made in Public Interest, the malafide transfers cannot be questioned with success even in courts.  The 5th CPC has considered these issues and has given certain suggestions which were not accepted and implemented by the Govt. Some of the suggestions made by the 5th CPC are reiterated as under:

a)              The Group C & B employees, taking into account the fact that their emoluments do not even enable them to make the both ends meet, should not be transferred at all except on their request/compassionate grounds.

b)              If transfer becomes necessary on promotion or due to other administrative exigency, the same should be subjected to a policy evolved in the Departmental Councils. Every department should, therefore, evolve a transfer policy on mutual agreement being reached at the respective Departmental Council or through bilateral discussions. The official side in the council will place an item for discussion on transfer guidelines.

c)              No transfer be permitted, which is violative of such an agreement or in the absence of such an agreement having reached in the council. If such transfers are made in violation of such an agreement, it shall be instantly cancelled by the Head of Department or Secretary to the Ministry concerned on receipt of a representation from the concerned employee.

d)              In case, no agreement is reached in the Departmental Council, the same should be referred to the Standing Committee of the National Council (JCM) whose decision is to be treated as final.

e)              In respect of other category of officials, the Department of Personnel must be asked to issue instructions in clear terms as per the above quoted recommendation of the 5th CPC.

We request that the 8th CPC may recommend not to subject employees to any transfer unless they themselves apply for the same.  Apart from it, posting of spouse in the same station should be made mandatory if the concerned employee applies, so that the same cannot be left to the mercy of the higher officials. All other DOPT or departmental guidelines may also be followed in the interest of the employees and compassionate/medical grounds kindly be duly considered.

Answer to Q 7:

Cadre Management in the Central Govt involves the structured Administration of the Civil Services, which consists of recruitment policy, training, Career progression, Periodical Cadre Review to balance the functional needs with the aspirations of the employees to move to the higher post in the ladder of hierarchy. While periodical and mandatory review takes place every five years for Group A services, no such review take place with regard to Group B & C. No Cadre Review took place for more than a decade in different categories. No Cadre Review took place in the history for the Superintendents of Central GST.  Even if Cadre Review is approved after prolonged correspondence between the concerned Ministry/DOPT and Department of Expenditure, the same will not be implemented immediately and the whole exercise will be once again delayed in the name of framing of Recruitment Rules. Despite, the Calendar published by DOPT for conducting DPC and affecting promotions for group B officers to higher posts, DPCs will be delayed for years for no fault of the employees and despite of the availability of the vacancies and eligible employees. Whenever belated promotions are given, retrospective effect is not given to the employees even though the delay was due to the fault of Administration. In accordance with various Court Judgments, whenever promotions of the employees are delayed, promotion may kindly be given retrospectively from the date of availability of vacancy in accordance of vacancy year. The DOPT instructions clearly reiterates that every cadre should be reviewed once in five years and such review should be done in consultation with the representatives of the service/cadre in question. But no such consultation takes place and to create some higher posts, lower posts including promotional posts are abolished in the name of matching saving. These all are the major concerns which the employees and their organization are facing. In the ongoing cadre restructuring of CBIC also, the service associations of stake holder group B officers have not been consulted.

In view of the above, Cadre Management requires proper planning and periodical review. Stagnation must be addressed through creation of Promotional Posts and Restructuring. Promotional Posts should not be abolished to create higher posts. The process must be transparent ensuring proper consultations and participative management with the employees’ representatives. Effective Cadre Management ensures proper utilization of talent and enhances productivity and morale. Equal Pay for Equal Work should be ensured. Categories having the same qualification and skill requirement etc. should not be discriminated in the matter of Pay Scales and Career Progression. The Hon’ble Supreme Court have several times upheld the constitutional principle of equal pay for equal work.

The categorization of discrimination between Central Secretariat and Field formations created by the Britishers continues even today. Higher Pay Structure is provided for employees working in the secretariat and employees of Subordinate offices (Field Offices) are placed in comparatively lower pay structure despite of doing more important work than Central Secretariat offices. 8th CPC may kindly take a serious note of it and recommend to ensure that the parity of pay structure and promotional avenues in the secretariat and the Field Offices are maintained and extended to all beyond the Assistant level upto the level of Under Secretary and above. Similarly, disparity in the matter of pay scales, promotional prospects etc. between one ministry and the other may also be removed in identical categories undoing the different promotional hierarchies.

Outsourcing of permanent jobs in the Central Govt Departments/Establishments is increasing day by day. This is not in the interest of quality job/services and National interest. There are almost 15 lakh posts lying vacant in all the Central Govt Ministries/Departments. It is not that these posts are not required to be filled. Non filling of these posts result in added work pressure and stress on the existing employees. It is also pertinent to mention that during COVID 19 pandemic when the entire Nation went on Lock Down it was only the govt employees who worked risking their life day and night to keep the govt machinery running. Many employees died due to Corona infection. Even compassionate appointment was not given to the dependents of these deceased employees. Therefore, 8th CPC may kindly recommend that outsourcing of Central Govt jobs may be dispensed with and all the posts lying vacant may be filled up through direct recruitment and promotion and compassionate appointment may be given in all deceased cases.

(A) REDESIGNATION OF POSTS IN CENTRAL GST LIKE STATE GST: In State GST, the posts have been redesignated by one step upward like below-

(i) Counterparts of Central GST Superintendent to Asstt. Commissioner equivalent to Central GST Superintendent.

(ii) Asstt. Commissioner to Deputy Commissioner equivalent to Central GST Asstt. Commissioner.

(iii) Deputy Commissioner to Joint Commissioner equivalent to Central GST Deputy Commissioner.

(iv) Joint Commissioner to Addl. Commissioner equivalent to Central GST Joint Commissioner and so on.

Due to above redesignation in State GST, when a combined team of both joins any operation or even in general, assessee thinks that equal ranked Central GST official is junior to the equal ranked State GST official. So, keeping in view the harmony of work and justification of designations, it is requested to kindly also redesignate the Central GST officials as below at par with State GST particularly keeping in view that both are working under same GST Act with provisions of cross empowerment under rules, regulations & provisions formulated by one & same GST Council-

(i) Superintendent to Asstt. Commissioner.

(ii) Asstt. Commissioner to Deputy Commissioner.

(iii) Deputy Commissioner to Joint Commissioner.

(iv) Joint Commissioner to Addl. Commissioner and so on.

(B) ENHANCEMENT OF PERCENTAGE OF PROMOTION QUOTA FROM 50% TO AT LEAST 90% IN GROUP A RECRUITMENT RULES: It is also requested that the Hon’ble 8th CPC may be pleased to recommend for enhancement of percentage of promotion quota from 50% to at least 90% in Group A Recruitment Rules by making the direct recruit quota maximum to 10% at least in CBIC. It will not only enhance the promotional avenues a bit for Central GST Superintendents to enter into group A but the stature of direct Group A service will also be protected.

(C) MERGER OF THREE GROUP ‘B’ EXECUTIVE NON GAZETTED AND ALSO GROUP ‘B’ EXECUTIVE GAZETTED STREAMS INTO ONE: The Inspectors of Central Excise/GST, Preventive Officers and Examiners of Customs all are mentioned as Inspector only (belonging to one & the same single cadre of Inspector) in the recruitment rules. The Central Excise/GST Inspector is also mentioned as Inspector of Land Customs in the recruitment rules.  Thus, he/she doesn’t only perform the duties relating to Central Excise/GST & Service Tax but also performs the duties relating to Customs. All of above 3 non-gazetted categories of Inspector are promoted to the post of Superintendent of Central Excise/GST & Land Customs, Superintendent of Customs and Appraiser of Customs respectively at gazetted level and re-merged as Asstt. Commissioner at JTS group A entry level belonging to one & the same single cadre. But the Inspector of Central Excise/GST & Land Customs is placed far behind the Examiner during this process. As a result, the Inspector of Central Excise/GST & Land Customs becomes junior even by decades to the Inspector (Examiner) of same year despite of being recruited to one & the same cadre by one & same process. Inspectors are retiring at Level 10 whereas Examiners are reaching Level 14. This injustice & discrimination is required to be undone immediately by granting the parity in promotions to the former category with the later one keeping their relative seniority intact after common entry into the job.   

Not only the recruitment rules but also the merger of above 3 categories at group A entry level prove that all of these relate to one & same single cadre. Despite of it, there is huge difference in their promotional avenues placing the officers recruited as Central Excise/GST Inspector at the worst position to force them working under their extreme juniors of Customs against all norms. This extraordinary situation of discrimination, disparity & injustice happens only in the CBIC. These disparities can only be removed by bringing all Inspectors, Preventive officers and Examiners of same year to same level of promotion through the process of merging all of the three non-gazetted categories and also gazetted categories into one at Group ‘B’ non-gazetted as well as Group ‘B’ gazetted level. Hon’ble CPC is requested to kindly do needful in this regard.

The parity, functional or even non-functional, with the common entry counterparts may be adopted by taking the measures like below-

(a) Time bound promotions/scales: Time scales after every 6 years. No posts will be required to be created for the grant of time scale after every 6 years.

(b) Notional promotions granting batch to batch parity with the best placed common entry Examiner. 

(c) Creation of supernumerary posts which will be personal to the officer at each level of the promotion and will be abolished with the retirement of the officer.

(d) Direct promotion to higher post/s: Customs Ministerial officers are being promoted as Appraiser without working even for a single day on feeder post of Examiner in CBIC. Likewise, our officers may also kindly be promoted directly to the higher posts at par with the officers recruited as Examiner.

(e) In-situ promotions (requiring no creation of posts) after completion of residency periods as prescribed by the DOPT for promotions from one Level to another.

(f) Batch to batch non-functional upgradation at par with the best placed common entry counterpart: It will also require no creation of posts.

Answer to Q 8:

(A) EXTRAORDINARY ACUTE STAGNATION EXISTING IN THE CADRE OF CENTRAL GST SUPERINTENDENT: The most of the Central GST Superintendents are retiring in Level 9 after getting only one promotion in the service career of 35-40 years after joining the job as Inspector. Some of them are also retiring in Level 10 on account of temporary posts of Assistant Commissioner or MACP upgradation while their common entry counterparts of CBDT, CSS, Customs etc. easily enter & enjoy Level 14 after getting 5-6 promotions. The Superintendents are getting promotion (if any) merely to Junior Time Scale (JTS) whereas other counterparts of CPWD, Railway Board, AFHQ, Foreign Services, CSS, CSSS, Rajya Sabha Secretariat, Administrative Services, Police Services, Forest Services, Sate Services etc. to Senior Time Scale (STS). Superintendents are also forced to work under the extreme juniors of Customs namely Examiners belonging to the same cadre of Inspector under the same organisation of CBIC having same administrative hierarchy and recruited by same process who are reaching upto level of Commissioner in Level 14. Thus, the rights to grow, make progress and live with dignity have been snatched from the Central Excise/GST Superintendents. Modified ACP Scheme has also provided no relief being proved disadvantageous to them instead of beneficial as compared to ACP Scheme. MACPS grants the Level 10 to them after 30 years of service which they were able to get within 24 years under ACPS. Whereas the MACPS source being the same (6th CPC), our counterparts are able to get two financial upgradations more than us merely within 26 years of service in the State governments of Uttar Pradesh etc. without offsetting any MACP upgradtion with the time scale.

The 5th CPC in its report vide para 66.117 observed that the activities of the CBEC are covered under the Non-Plan Budget of the Department of Revenue, which has reportedly caused a situation where legitimate needs for expansion of the department are not taken care of. It has been demanded in this context that a relationship between revenue collected and expenditure on revenue services should be established so that need for additional staff for the department is properly taken care of. We have considered this demand and feel that augmentation of the manpower resources of the department should be strictly determined only on functional considerations and there can be no nexus between expenditure on establishment and revenue collections. These observations were totally ignored by the CBEC (now CBIC).

The 4th CPC in its report vide para 23.9 and 23.10 observed that it appears that introduction of Selection grade and grant of one stagnation increment have proved to be temporary palliatives. A solution of the problems of stagnation and inadequate promotion opportunities should seem to be in a rational cadre structure and long pay scales. It is recognized that promotional opportunities should be available to employees as motivation for them to contribute their best in the discharge of their duties. At the same time, the system of career progression should be consistent with the functional needs and requirements of organization. But nothing done. The Inspector cadre has been trifurcated by the CBIC into three categories without any justification, i.e., Inspector of Central Excise/GST, Preventive Officer of Customs and Examiner of Customs (all analogous posts) recruited through the same competitive examination under same eligibility conditions in the same organization of CBIC having same administrative hierarchy and performing same nature of job of tax collection but with huge discriminatory difference in promotional avenues. All of these are mentioned as Inspector only in the recruitment rules and other relevant documents getting next promotion as Superintendent of Central Excise/GST, Superintendent of Customs and Appraiser of Customs (again all analogous posts) respectively at group B gazetted level performing again same nature of job. The single cadre trifurcated at the level of Inspector is re-merged at the level of Asstt. Commissioner (JTS group A entry level) placing Central Excise/GST Inspectors decades behind the Examiners of Customs who reach upto the level of Commissioner in Level 14 after getting 6 promotions whereas Ist category retires in Level 9 or 10.

The Central Excise/GST stream officers work in all of the three streams of the CBIC, i.e., Central Excise/GST, Service Tax and Customs. On the other hand, the Customs stream officers work only in the Customs stream but they are posted also to Central Excise/GST and Service Tax after entry into group A. Thus, it is even more surprising that a junior officer having worked only in the Customs stream and having no knowledge of Central Excise/GST or Service Tax heads his seniors of Central Excise/GST. Such a horrible situation of humiliation and discrimination to work under an extreme junior happens only in the organization of CBIC which is neither justifiable by any rule of law or any principle of natural justice. Nothing has been done by the CBIC to bring a scheme independent of cadre restructuring for these poor officers despite of approval by the Cabinet in 2013 at the time of last cadre restructuring. So, it is requested to bring a scheme immediately to bring all officers joined as Central GST Inspector batchwise at par with the officers joined as Examiner of Customs in the matter of promotions.

(B) UNIFORM PROMOTIONAL HIERARCHY: The Central Excise/GST Superintendents are promoted merely to a JTS Group A post whereas the most of other Group B Gazetted officers are being promoted to STS Group A post in the Central as well as State Governments. Promotional hierarchy is also varying department to department. Somewhere Group B Gazetted Officers are promoted merely to a post in Level 10 whereas they are being promoted to a post in Level 11 at other places. Like it, somewhere Group B Non Gazetted officers are promoted to a post in Level 10 whereas they are being promoted to a post in Level 7 or 8 at other places. Somewhere promotional hierarchy is Level 7à11à13 (CPWD etc.), somewhere Level 7à8à11à12à13 (CSS etc.) and somewhere it is Level 7à8à10à11à12à13 (CBDT etc.). So, the promotional hierarchy after entry into group B is required to be made uniform for the sake of justice to all. The posts under the Level 10 & 11 and also Level 12 & 13 being functionally same, the ideal promotional hierarchy for all after entry into Group B seems only to be Level 7à11à13à14. It is, therefore, requested to make the promotional hierarchy uniform for all Group B officers as Level 7à11à13à14. Where the Group B gazetted officers are placed in a Level higher than 7, they all may kindly be promoted uniformly to a post in Level 11. Thus, the promotional hierarchy should kindly be as below-

Group ‘B’ Gazetted postàLevel 11à13à14.

(C) MACP Scheme: It is said to be the abbreviation of Modified Assured Career Progression Scheme but the Superintendents & Inspectors of Central Excise/GST feel that it is Meaningless Assured Career Progression Scheme. The main objective of introducing ACP scheme was to grant financial compensation to the employee in lieu of the lack of functional promotions. Before the introduction of ACP scheme in 1999, many Superintendents of Central Excise/GST retired from service without getting IInd promotion of the career. Upon introduction of ACP scheme, direct recruit Inspectors of Central Excise/GST were granted two financial upgradations on the completion of 12 years (if not got Ist promotion) and 24 years (if not got IInd promotion) of regular service in higher pay scale of promotional hierarchy. But this scheme was replaced by MACP scheme w.e.f. 01.09.08.

The surprise was the grant of three financial upgradations on completion of 10, 20 and 30 years of regular service in the hierarchy of Grade Pays in the immediate next higher Grade Pay instead of promotional hierarchy. Not only it, one MACP upgradation was offset with the non-functional time scale. Very shockingly, single grade pay of Rs. 5400 was also classified into two categories, i.e., Rs. 5400 in PB2 and Rs. 5400 in PB3 without the difference of a single rupee under para 8.1 of MACPS. It resulted grant of GP of Rs. 5400 in PB3 in 30 years to our officers whereas they were getting equivalent pay scale in 24 years under ACP scheme. So, MACP scheme proved total failure, disadvantageous and discriminatory for our officers. The source of MACPS being one and the same, i.e., common recommendations of the 6th CPC, it is also worth to mention that the State governments like Uttar Pradesh etc. have not offset the MACP upgradation with the time scale. They have also granted the 3rd MACP upgradation within 26 or less years to their employees without bifurcating the single grade pay at any level. As a result, their officers are able to get 4 financial upgradations (3 financial upgradations+1 time scale) as a combined effect of time scale and MACP Scheme in 26 years or even less. It is also worth to submit that the offsetting of MACP upgradation with the time scale was also not recommended by the CPC neither was part of Gazette Notification or MACP OM but, very unfortunately, the Govt offset the MACP upgradation with the time scale against the recommendations of the Commission.

So, the MACP Scheme is required to be continued in the form of in situ promotional scheme (higher pay scales with higher designation) based on ideal functional and uniform promotional hierarchy of Level 8à11à13à14àso on without offsetting the MACP upgradation with the time scale to motivate personnel especially in Central Excise/GST Department where normal promotional avenues are extraordinarily bleak. There must also be the provisions for stepping-up of the pay of seniors at par with the juniors. At least 5 financial upgradations under same pay scales in the ideal uniform promotional hierarchy for all departments, as submitted above, may kindly be granted under the scheme without any offsetting with the time scale and also without bifurcating any grade pay as below-

(1) Ist Financial upgradation after 6 years of service from the date of appointment.

(2) IInd Financial upgradation after 12 years of service from the date of appointment.

(3) IIIrd Financial upgradation after 18 years of service from the date of appointment.

(4) IVth Financial upgradation after 24 years of service from the date of appointment.

(5) Vth Financial upgradations after 30 years of service from the date of appointment.

The anomalies relating to offsetting of time scale with MACP upgradation and treating GP of 5400 in PB2 & PB3 differently may also be recommended to be removed w.e.f. 01.09.08, i.e., date of initiation of MACP scheme.

As recommended by 6th CPC all qualified employees irrespective of their grade/post may be allowed for Fast Track Promotion through Limited Departmental Competitive Examination to higher posts.

(D) DIRECT PROMOTION OF CENTRAL GST SUPERINTENDENT TO STS POST: Most of group B gazetted officers in the Central &s State governments are being promoted directly to STS post in Level 11 including CSS, CPWD, Railway Board, CSSS, AFHQ, Rajya Sabha Secretariat, Forest services, Police services, Foreign Services, Engineering services, State services etc. whereas Superintendents are being promoted (if any) merely to JTS post in Level 10. They should also be granted promotion directly to STS post to maintain parity with similarly placed employees of other departments. Central Excise/GST Inspectors and Assistants of CSS, being analogous posts, are recruited through a common entrance examination and in a common scale of pay. Once upon a time, the pay scale of Assistant was lower than pay scale of Inspector but was upgraded at par later to maintain historic parity. Like it, pay scale of SO was also lower than pay scale of Superintendent but was upgraded at par later to maintain historic parity. Inspectors are promoted to the rank of Superintendent whereas the Assistants are promoted as SO. Posts of Superintendent and SO are also analogous, yet the similarity ends here.  SOs are promoted directly to STS post in Level 11 and reach upto level of JS in Level 14 whereas Superintendents are promoted, if at all, to JTS post merely in Level 10. Analogous counterparts like Income Tax Inspectors, Examiners of Customs etc. recruited through same process in same department also get promoted upto Level 14.

The principles laid down in the cases of (i) Union of India versus Virpal Singh on 30-01-1997 (ii) All India Station Masters Association versus General Manager Central Railway AIR 1962 SC 284 (iii) High Court of Calcutta versus Anil Kumar Rao AIR 1962 SC 1704, 1963 (1) SCR 437 (iv) Ajit Singh vrs State of Punjab and (v) Indra Sawhney Vrs Union of India (1992) 3 SCC217 para 845 ; AIR 1993 SC 477 by a 9 Judges Bench are:

“Inequality of such opportunity for promotion as between citizens holding different posts in the same grade may, therefore, be an infringement of Article 16 of the Constitution of India.”

“Equality of opportunity in the matter of promotion means that all employees holding posts in the same grade shall be equally eligible for being considered in the merit for appointment to the higher grade.”

“There would be no discrimination and there is no violation of Article 14 & 16 (1) of the Constitution of India where the quota rule of recruitment has no connection with the rule of seniority”.

Superintendents are not only discharging all functions relating to assessment, investigation & intelligence, drafting of SCN and even adjudication but have also been conferred with the judicial responsibilities of recording statements of various miscreants.  Statements tendered before them have a legal binding and are treated as a valid piece of evidence by various courts including Supreme Court just like the statements tendered before a Magistrate. They also have adjudication responsibilities pertaining to the cases of their level.  Though the Superintendents are performing more responsible work functions as compared to other group B gazetted counterparts yet they are facing the worst career prospects instead of being given better treatment. They are being maltreated despite of being backbone of the govt revenue.

Hence, it is requested that Hon’ble 8th CPC may kindly recommend for promotion of   Superintendents also directly to a STS post like many other counterparts of them and formulate a scheme to reach Superintendents also Level 14.

(E) INTRODUCTION OF FLEXIBLE PROMOTION/COMPLEMENTING SCHEME: Problem of acute stagnation existing in cadre of Superintendent can be solved, if a flexible promotional scheme is introduced for them after joining as Inspector. As per recommendations of 6th CPC, the flexible promotional scheme was introduced in the Department of Science & Technology. 6th CPC made a number of recommendations for modification of this scheme. DOPT vide Notification dated 09.11.98 made the regulation of in situ promotion under this Scheme. It was further reviewed by DOPT in light of 6th CPC recommendations and modified Flexible Complementing Scheme guidelines issued vide OM No. AB/4017/37/2008-Esst(R) dated 10.09.10. FCS and MACPS both are also applicable simultaneously. Like it, Dynamic Assured Career Progression scheme is also prevailing in the Ministry of Health. We request the Hon’ble 8th CPC to kindly recommend for introduction of such a scheme for granting of at least 5 in situ promotions in the service career of each and every Superintendent in the hierarchy of ideal uniform functional promotions after joining as Inspector.

(F) BATCH TO BATCH NON FUNCTIONAL FINANCIAL UPGRADATION TO THE CENTRAL EXCISE EXECUTIVE OFFICERS AT PAR WITH THE BEST PLACED COUNTERPARTS OF CSS/CBDT/CUSTOMS ETC. All organised group A officers recruited with IAS, the best placed group A service, in same pay scale through common entry examination have been granted financial parity vs the counterparts of IAS. They have been granted non-functional financial up-gradation vide DOPT OM No. AB.14017/64/2008-Estt.(RR) dt. 24.04.09 to compensate lack of promotions as compared to IAS. 

As far as the group B officers are concerned, CSS officers are best placed group B officers like IAS in group A. Group B officers at the level of Inspector of Central Excise/GST, Assistant of CSS, Inspector of Income Tax, Examiner of Customs etc. are recruited in a common scale of pay through common entry examination. Officers recruited as Assistant (Group B, Non Gazetted) in the Ministries get the benefit of promotions upto the JS level in Level 14. Likewise, Inspectors of Income Tax and Examiners of Customs also reach Level 14. However, Inspectors of Central Excise/GST recruited as Group B (Non Gazetted) through same All India competitive examination get generally one promotion in 35/40 years of service career. 

Above facts very well manifest the injustice meted out to officers recruited as Central Excise/GST Inspector despite of the most important work of revenue collection being done by them. During this course, they have been facing every threat including life of them as well as their families by the hard core criminals, smugglers and white collared criminals etc. alongwith tremendous administrative pressures. Thus, the officers recruited as the Inspector of Central Excise/GST deserve a far better treatment. The grant of the non-functional financial upgradation on batch to batch basis with the best placed common entry counterpart of CSS, Income Tax, Customs etc. on the lines of grant of non-functional financial upgradation to Group A officers vs. IAS may really be a solace for these poor Central Excise/GST officers. As far as the importance of the work responsibilities is concerned, Superintendents are discharging all functions relating to assessment, investigation & intelligence, issuance of Show Cause Notices with the responsibility of adjudication etc. They have not only been conferred with the judicial responsibilities in the matter of adjudication but also been conferred with the judicial responsibilities of recording statements of various miscreants.  The statements tendered before the Superintendent have a legal binding and are treated as a valid piece of evidence by various courts including Supreme Court just like the statements tendered before a Magistrate. No such powers have been conferred to the CSS officers or any other counterparts of Central Excise/GST Superintendents/Inspectors. Though Central Excise/GST Superintendents are performing more responsible work functions as compared to other common entry counterparts, yet they are facing the worst career prospects & pay packages instead of being given better treatment. This injustice is being faced by them despite of being the backbone of the govt revenue on account of being the major revenue collectors for the government in the form of Central Excise duty, Customs duty, Service Tax, FTT, IATT, GST etc. In the actual terms, they are the backbone of govt on account of being responsible to earn finance for govt.

Parity is the basic concept of our Constitution and the parity in promotions & pay packages is required to be maintained amongst the historically similarly placed employees but nothing done by Govt. 

In view of above, it is requested to kindly recommend that the officers recruited as Inspector/Superintendent of Central Excise/GST be granted at least non-functional financial upgradation at par with the best placed counterpart of CSS, CBDT, Customs etc. of same batch on batch to batch basis since the date of the implementation of the scheme for Group A. 

Answer to Q 9:

(A) Death Cum Retirement Gratuity (DCRG) under OPS/NPS/UPS: DCRG is currently calculated at ¼ of the Basic Pay+DA for each completed 6 months period of qualifying service subject to a maximum of 16.5 times of the emoluments and a monetary ceiling of Rs 25 Lac. This benefit is admissible to Govt Employees who retired after completing 5 years of Qualifying service. In cases where a Government Employee dies while in service, the Family is granted Gratuity at prescribed rates. We propose that Gratuity should be calculated on the basis of 25 effective working days instead of 30 days in a month, so that Govt Employees are not placed at a disadvantage position compared to employees covered under the Payment of Gratuity Act. Further, the existing ceiling of 16.5 times of the emoluments should be removed. This effectively reduces Gratuity for employees who have served beyond 33 years. We further propose that the 8th CPC may kindly recommend to calculate Gratuity on half a month Basic Pay+DA for each completed 6 months period of qualifying service. Considering high rising inflation, the maximum gratuity ceiling should be enhanced from Rs 25 Lac to 75 Lac. All these revised benefits should be extended to employees covered under NPS & UPS schemes also ensuring equitable retirement benefits across all categories of Central Govt Employees.

(B) One Rank One Pension & extension of OROP to civil pensioners: The Govt has implemented the One Rank One Pension (OROP) scheme for Armed Forces personnel to remove disparities whereby individuals of the same rank and length of service were receiving different pensions due to retirement at different points of time. This ensures that persons of equivalent rank and status receive comparable pensions irrespective of their date of retirement. Similarly, there already exists complete parity in pension among constitutional authorities such as Judges of the Supreme Court, High Courts and the Comptroller and Auditor General of India regardless of their retirement date. For Civilian Employees, the 5th CPC recommended parity between past and future pensioners. However, disparities have re-emerged.

We therefore request the 8th CPC to disregard the restrictive provisions introduced through the Validation of the Central Civil Services (Pension) Rules 2025 and reaffirm that all pensioners constitute a single homogeneous class. Accordingly, the OROP should be extended to Central Civil Pensioners & family pensioners ensuring parity in Pension without artificial cutoff dates base on retirement. The fitment factor for revision of Pension should be at par with the same recommended for working employees.

(C) Leave Salary/Encashment: We have already proposed 600 days EL Encashment and also full reimbursement of available HPL of the employees while on Superannuation / Retirement etc. The 8th CPC may kindly consider to recommend the same.

(D) Parity between past and present pensioners: 7th CPC recommended ensuring parity between past and present pensioners as a matter of equity and social justice. This principle recognizes that pensioners, irrespective of their date of retirement, should not be subjected to disparities in pension solely due to the timing of their retirement.

Historically, the Govt implemented the recommendations of the 5th CPC by adopting a fair and rational methodology of notional fixation of pay of past pensioners in the revised pay scales by applying the same fitment formula as was granted to serving employees. Based on such notional pay fixation, pension was revised, thereby ensuring a reasonable degree of parity.

However, subsequent implementations have diluted this principle by linking pension revision to the pay scale or pay matrix level from which the employee retired rather than the post actually held. This has resulted in anomalies and disparities, particularly in cases where pay structures have undergone restructuring, merger of scales or upgradation of posts over time.

So, the pensioners who held the same post but retired at different points of time should receive comparable pension. Discrimination based solely on date of retirement is arbitrary and contrary to the principles of equality, judicial principles and fairness. The Hon’ble Supreme Court, in various judgments including the landmark D. S. Nakara case has upheld that pensioners form a homogeneous class and should not be treated unequally without reasonable justification. The anomalies due to pay structure changes are required to be removed. Over successive Pay Commissions, pay scales have been merged, upgraded or replaced by pay matrix levels. Linking pension to old scales rather than the post leads to distortions and lower pension for earlier retirees. The methodology adopted after the 5th CPC granting notional pay fixation with the same fitment benefit as serving employees ensured transparency, uniformity and fairness. A return to this approach would remove existing disparities and consistency with earlier CPC approach will be maintained. Pension is a deferred wage and a measure of social security. Ensuring parity reinforces the dignity & social justice to pensioners who have rendered long years of service to the nation & society.

It is, therefore, requested that the 8th CPC may kindly ensure full parity between past and present pensioners by adopting a uniform and equitable method of pension revision, restore the principle of notional pay fixation applying the same fitment formula as applicable to serving employees, link pension revision to the post held at the time of retirement rather than to the pay scale or pay matrix level from which the pensioner retired to address anomalies arising out of scale mergers, upgradations and restructuring ensuring that no pensioner/family pensioner is placed at a disadvantage due to systemic changes.

(E) Restoration of Commutation of Pension after 10 years: In accordance of Rule 10 A of the CCS (Commutation of Pension) Rules 1981, Restoration of Commutation Pension is after 15 years. These Rules were framed nearly decades ago based on the Financial & Actuarial Parameters prevailing at that time. However, lot of changes have taken place since then which includes interest rates, life expectancy, mortality rates, death rates and actuarial risk factors which necessitate a fresh values of the restoration period. The following illustration will give a clear picture.

Recovery of Commuted Value:

For a pensioner aged 61 years (Next Birthday)

          Commutation Factor                  :         8.194

          Amount Commuted                   :         Rs.100

          Commuted Value Received       :         Rs.9833

          Amount Recovered in 10 years  :         Rs.12,000

          Amount recovered in 15 years   :         Rs.18,000

Thus, very pretty more than entire commuted value is recovered within less than 10 years and recovery beyond this period results in excess recovery from pensioners to enrich the govt. Therefore, restoration of commuted pension after 10 years would be reasonable, even if some interest rate and insurance factor is added to it. However, it is expected from a welfare state not to charge any interest or insurance factor from its senior citizens as life expectancy of govt employees has already gone very well beyond 75 years. Although Commutation is optional, Govt as a Model Employer should consider this matter from a welfare perspective of the senior citizens who have served the nation and the people rather than a revenue perspective. Many expert bodies have also recommended for restoration of commuted pension in a shorter period. Many State Government including Kerala, Gujarat etc. have also reduced the period. 5th CPC also recommended for its reduction. The 2nd National Judicial Pay Commission also recommended for its reduction. Therefore, we propose for restoration of Pension after 10 years or at the age of 70 years whichever is earlier. As 5th CPC recommended this issue first time, it should be implemented w.e.f. 01.01.96. It is worth to mention in this regard that the pensioners under Employees Pension Scheme, 1995 of Central Govt. are entitled to get the pension commuted for 100 months. The recovery of the commuted value is also made from them in 100 months only. Thus, only the commuted value of pension is recovered from them without recovering any extra amount (i.e., principal or interest or insurance cost or any other charges etc.). On the same lines, only the commuted value of pension should be recovered from all pensioners without recovering any extra amount.

(F) Revision of Pension/Family Pension: For a decent and dignified life after retirement, full pension should be fixed at least 75% of the Last Pay Drawn (LPD) or the average of the last 10 months emoluments which is more beneficial instead of the present 50% keeping in view ever increasing inflation and life expenses. After the retirement, the life expenses remain more or less the same after death of single member of the family without any substantial reduction, rather enhance with the passage of time. Accordingly, family pension should also be fixed at least 60% of the last pay drawn. The period of enhanced family pension may also be extended up to 70 years ever increasing inflation and life expenses. If there is any anomaly in the pension due to the date of retirement or any other reason including inter-departmental difference, the existing pensions should be revised on notional basis with due increments to remove anomalies bringing the same at par with the best placed pensioner of the same rank.

The Parliamentary Standing Committee has also recommended Additional Pension of 5% every five years after superannuation. We, therefore, propose the following for the kind consideration of the 8th CPC.

 

Age

Increased pension/family pension

65 Years

5% of LPD+DA

70 Years

10% of LPD+DA

75 Years

15% of LPD+DA

80 Years

20% of LPD+DA

85 Years

25% of LPD+DA

 

As per various Supreme Court Judgments especially that of the historical Nakara Judgment, pension is not a bounty or Ex-Gratia but a right and deferred wage. Such judgement prohibits discrimination amongst pensioners. Recently the Hon’ble Supreme Court has ruled that pensioners cannot be discriminated when compared to serving employees on benefits like DA/DR etc and such discrimination will amount to violation of Article 14 of the Constitution of India. Therefore the recommendations of the 8th CPC with regard to all pensionary matters should be equally applicable to the pensioners who retired prior to 01/01/2026 and also to the existing family pensioners.

(G) One or two uniform dates in a year for retirement of Central Govt employees: At present, Central Govt employees retire on the last date of each month based on their date of birth. This system results in a continuous administrative burden, particularly on administrative and accounts wings, as retirement-related matters have to be handled throughout the year without any consolidation. Further, under the existing framework, departments remain in a state of perpetual disruption as one or more employees retire every month followed by others in subsequent months. This ongoing cycle necessitates frequent redistribution of work and repeated handover of responsibilities to newly posted employees. Consequently, it not only adversely affects the performance and settling-in period of new incumbents but it also impacts the overall efficiency & stability of departmental functioning. Due to this monthly retirement pattern, processes relating to pension, gratuity, leave encashment, GPF/NPS settlement & other retiral benefits continue incessantly throughout the year. This leads to fragmentation of administrative efforts, avoidable pressure on resources and reduced operational efficiency. A uniform retirement system with fixed dates would effectively ease the work DDOs. So, it is humbly requested that the existing system of monthly retirement may be rationalized by prescribing one or two uniform dates in a year for retirement of Central Govt employees, such as once annually on 31st March as already prevalent in retirement of teachers or twice annually on 31st March and 30th September as per administrative convenience. It is worth to mention that such system has proven to be efficient and effective in case of teachers. In the past, annual increments were granted on different dates based on the date of appointment. This system was subsequently rationalized by introducing a uniform increment date, i.e., 1st July, which was later expanded to two dates, i.e., 1st January and 1st July. On similar lines, the retirement system can also be simplified and standardized for greater administrative convenience & efficiency through consolidated handling of retirement cases. It will also reduce continuous workload on administrative & accounts branches, improve financial planning for pensionary liabilities, enhance operational stability by minimizing frequent disruptions, improve digital & records management through structured processing. It will also be beneficial in better human resource planning with predictable vacancy cycles, simplification of NOC & clearance processes and greater clarity and convenience for employees in planning post-retirement life. In light of the foregoing, it is requested that the existing retirement framework may kindly be reviewed & restructured to provide for one or two uniform retirement dates in a year. Such a reform would significantly enhance administrative efficiency, reduce avoidable disputes and ensure a more rational & employee-friendly system.

(H) Additional facilities as a welfare measure to be provided to the Pensioners/family pensioners:

1)              Considering the escalating House Rent in all the cities and towns and even in rural areas, pensioners & family pensioners may kindly be given House Rent Allowance at the rate to be given to the working employees as per category at the time of retirement. The requirement of housing does not get vanished after retirement.

2)              Pensioners may also be extended the benefit of LTC as also submitted above.

3)              With increasing age many Pensioners suffer from chronic and debilitating conditions such as Alzheimer’s disease, Dementia, Paralysis, Severe post-surgical disabilities etc. which requires a home nurse/care taker. We propose that the 8th CPC may kindly recommend for Care Taker Allowance based on medical necessity for the pensioners/family pensioners.

4)              Pension/Family Pension should be exempted from Income Tax for the sake of better survival.

5)              Railway Concessions for Senior Citizens may be restored. Air flight concessions should also be given on actual basis instead of merely on base fare.

6)              Govt may kindly establish elder friendly holiday homes/hostels across the country.

7)              Physically Disabled Pensioners/Family Pensioners may be provided physical assistance and the inevitable mobility cost as special allowance to visit hospitals, diagnostic centres etc. may kindly be recommended.

8)              Pensioners/family pensioners may also kindly be given subsistence increment to enable their survival a bit easier and better at the rate of at least 6% of basic pension and DR keeping in view ever rising life expenses and vulnerability to various diseases.

(I) Withdrawal of Contributory National Pension System (NPS) and Unified Pension Scheme (UPS) and restoration of Defined and Non-Contributory Pension Scheme: The Govt decision to replace the Defined and Non-Contributory Pension Scheme by NPS to those employees who joined service on or after 01.01.2004 is not only going backwards but an illegal step in the light of the Supreme Court ruling that the Pension is as good as right to property and is enforceable.   The NPS has already made social security in old age uncertain being dependent on Market forces. The scheme has been compulsorily imposed on a section of the employees and it is discriminatory. The subsequent UPS introduced by the Government wef 01.04.2025 was also rejected by the employees. Out of more than 26 Lac NPS employees, only 1.22 Lac (around 4.5%) migrated to UPS. Therefore, there is no justification in continuing with NPS/UPS and it may not kindly be made applicable to the Central Government Employees. So, all those who have been covered under NPS/UPS may kindly be reverted back to Defined and Non–Contributory Statutory Pension Scheme (OPS) under the CCS Pension Rules 1972 (now 2021).

It is requested that the Hon’ble 8th CPC may kindly consider all requests for the sake of justice.

With respectful thanks & regards,

HARPAL SINGH,

Secretary General,

All India Association of Central Tax Gazetted Executive Officers.