Friday, February 28, 2014

Cabinet approves merger of DA with basic pay?

Defers decision on anti-corruption ordinances and Forward Contract Regulation (Amendment) Act

The Cabinet today approved merger of 50% dearness allowance of Central government employees and pensioners with their basic pay. However, it has deferred a decision on anti-corruption ordinances and Forward Contract Regulation (Amendment) Act. A special Cabinet meeting is likely tomorrow to take call on these ordinances.
Source:Business Standard

Eyeing Lok Sabha polls, Cabinet hikes DA of 50 lakh Central employees


New Delhi: With an eye on Lok Sabha elections, the Union Cabinet approved a hike in dearness allowance (DA) to 100 per cent from existing 90 per cent benefiting 50 lakh Central government employees and 30 lakh pensioners. The DA hike though, will not be merged with the basic pay.

The Cabinet in its last meeting before the Lok Sabha elections, also approved Rs 1,000 per month as the minimum pension for the non-government staff under the EPFO scheme.

ALSO SEE Cabinet approves President's Rule in Andhra Pradesh

However, an ordinance on key anti-corruption legislations which have been strongly backed by Congress Vice President Rahul Gandhi has been deferred. Sources saying there could be a decision at another Cabinet meeting on Saturday. The Congress core group will take up the issue when it meets on Friday evening.

Meanwhile, the Cabinet has also decided that Andhra Pradesh, which is being split to create Telangana, will be put under President's Rule. The state has been without a chief minister after Nallari Kiran Kumar Reddy resigned from the post and Congress party to protest against the passage of Andhra Pradesh Reorganisation Bill, 2013 which paved the way for Telangana's creation.
The Bill is awaiting President Pranab Mukherjee's consent after which India will have 29 states.

Source:http://ibnlive.in.com/news/eyeing-lok-sabha-polls-cabinet-hikes-da-of-50-lakh-central-employees/454834-37-64.html

Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.1.2014

The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2014, in cash, but not before the disbursement of the salary for the month of March 2014 at the rate of 10 percent increase over the existing rate of 90 percent.

Hence, Central Government employees as well as pensioners are entitled for DA/DR at the rate of 100 percent of the basic with effect from 01.01.2014. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both dearness allowance and dearness relief would be Rs. 11074.80 crore per annum and Rs. 12920.60 crore in the financial year 2014-15 ( i.e. for a period of 14 months from January 2014 to February 2015).

Source:pib

Union Cabinet today gave its approval to the Terms of Reference of 7th Central Pay Commission( 7th CPC)

The Union Cabinet today gave its approval to the Terms of Reference of 7th Central Pay Commission (CPC) as follows:-

a)      To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

            i.    Central Government employees-industrial and non-industrial;
           ii.     Personnel belonging to the All India Services;
           iii.     Personnel of the Union Territories;
           iv.    Officers  and   employees   of  the   Indian  Audit  and   Accounts Department;
           v.      Members of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of Parliament; and
           vi.     Officers and employees of the Supreme Court.

b)      To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the Defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel.

c)      To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d)     To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.

e)      To review the variety of existing    allowances presently available to employees in addition to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure is so designed as to take these into account.

f)       To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g)      To make recommendations on the above, keeping in view:

i.         the economic conditions in the country  and need for fiscal prudence;
ii.        the need to ensure that adequate resources are available for developmental expenditures and welfare measures;
iii.         the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications;
iv.          the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and
v.           the best global practices and their adaptability and relevance in Indian conditions.

h)      To recommend the date of effect of its recommendations on all the above.
The Commission will make its recommendations within 18 months of the date of its constitution.  It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the 7th Central Pay Commission.

Background

            Central Pay Commissions are periodically constituted to go into various issues of emoluments’ structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required.

Source:pib

LATEST ON DA NEWS-Government hikes dearness allowance to 100%-

Government hikes dearness allowance to 100% Zee Media Bureau

New Delhi: In a move that could benefit 50 lakh employees and 30 lakh pensioners, the Union Cabinet on Friday hiked dearness allowance to 100 percent from the existing 90 percent, a 10 percent increase.

The increase in DA comes ahead of the imposition of the model code of conduct by the Election Commission.

In September 2013, the government had hiked the DA by another 10 percent to 90 percent effective from July 1, 2013.

This is the second double digit hike in a row and would be effective from January 1 this year.

Source:http://zeenews.india.com/business/news/economy/government-hikes-dearness-allowance-to-100_95308.html


HOT NEWS-CABINET APPROVED DEARNESS ALLOWANCE(DA).DA JANUARY 2014 REACHED 100%.

Cabinet clears hike in DA to 100%

The Union Cabinet in its last meeting before the Lok Sabha elections on Friday has decided to impose President's Rule in the newly divided state of Andhra Pradesh.

The Cabinet has also approved Rs. 1,000 per month minimum pension under EPFO scheme and it has cleared hiking dearness allowance (DA) to 100% from existing 90%, benefiting 50 lakh employees and 30 lakh pensioners.

The Cabinet has approved the EC proposal for raise in poll expenditure of candidates.

However, the anti-corruption ordinances has been deferred in the Cabinet meeting.

Source:http://www.hindustantimes.com/india-news/cabinet-clears-hike-in-da-to-100/article1-1189221.aspx

Cabinet likely to approve Rs 1,000/month min pension tomorrow

Union Cabinet is likely to approve tomorrow the proposal to ensure Rs 1,000 minimum monthly pension under the pension scheme run by retirement fund body EPFO, which would immediately benefit 28 lakh pensioners.

According to sources, the proposal is listed in the agenda of the meeting of the Union Cabinet scheduled for tomorrow.

The move to ensure Rs 1,000 minimum pension under Employees' Pension Scheme-95 will immediately benefit about 28 lakh pensioners including five lakh widows. There are about 44 lakh pensioners.

Earlier this month the Employees' Provident Fund Organisation's (EPFO) trustees had approved the proposal to provide an entitlement of minimum monthly pension of Rs 1,000.

The Central Board of Trustees (CBT), the apex decision making body of EPFO had met on February 5, and decided to amend the EPS-95 scheme for the purpose.

The proposal would be placed before the Union Cabinet for its approval for the Rs 1,000 minimum monthly pension as the government would have to make fund provisions for the purpose.

The government would have to provide an additional amount of Rs 1,217 crore to ensure the minimum pension of Rs 1,000 starting 2014-15. Pensioners are, therefore, expected to get benefit with effect from April 1 this year. The proposal has already been approved by the Finance Ministry.

Source:http://www.business-standard.com/article/pti-stories/cabinet-likely-to-approve-rs-1-000-month-min-pension-tomorrow-114022800105_1.html

RAISING RETIREMENT AGE TO 62 ,DA HIKE TO 100%,ToR OF 7th PAY COMMISSION -CABINET MAY BRING CHEER TO CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS

Cabinet to meet on Friday to clear populist measures

The Union Cabinet Friday will decide on a series of populist measures and some ordinances on anti-graft and protection of rights bills at a meeting possibly the last before the model code of conduct could come into force for coming Lok Sabha polls.

A proposal to increase the poll expenditure cap up to Rs.70 lakh per contestant from Rs.40 lakh now is also on the table of the cabinet meeting.

The cabinet will also decide on hiking dearness allowance to 100 per cent from existing 90 per cent, benefiting 50 lakh employees and 30 lakh pensioners.

The hike in DA would be effective from January 1 this year.

Another proposal which will bring cheers to pensioners is to ensure Rs.1,000 minimum monthly pension under the pension scheme run by retirement fund body EPFO, which would immediately benefit 28 lakh pensioners.

The cabinet is likely to consider a clarification on the decision for supply of 12 subsidised LPG cylinders per household in a year.

The government had last month raised the cap on supply of cheaper LPG from 9 to 12 cylinders of 14.2-kg each. It was inferred that this meant one cylinder in a month.

The ministry has proposed to the cabinet that consumers should have the freedom to book a refill after 21 days with an overall cap of 12 subsidised bottles in a year.

When the model code of conduct goes into force with the announcement of the election schedule, no populist measure can be made public and any policy decision can be announced only with the clearance of the Election Commission.

Sources said the cabinet may also consider raising the retirement age of government employees from 60 to 62 years.

The raising of superannuation age was originally a part of the Terms of Reference of the Seventh Pay Commission.

Since the Commission report is expected not before 2017, a decision on raising the retirement age cannot happen before that.

So, the reference to retirement age has been removed from the ToR of the 7th Pay Commission and it is speculated that the same may be brought as a supplementary agenda.

Source:http://indiatoday.intoday.in/story/cabinet-meeting-to-clear-populist-measures/1/345964.html

Thursday, February 27, 2014

7th Pay Commission Terms of reference to be taken up by Cabinet

Cabinet Committee recommends Parliament prorogation

Unprecedented number of proposals including the possibility of draft ordinances on anti-graft bills expected to be cleared by Cabinet on Friday

The Cabinet Committee on Parliamentary Affairs on Wednesday recommended prorogation of Parliament ahead of Friday’s Cabinet meeting which is scheduled to clear an unprecedented number of proposals including the possibility of draft ordinances on the pet anti-graft bills of the Congress vice-president Rahul Gandhi.

“It is a choc-o-bloc agenda. I have never known seen such heavy agenda before the Cabinet. We are working feverishly as if for the last supper,” a senior Finance Ministry official told The Hindu. The UPA government is keen on clearing as many proposals as possible before the expected general election announcement of the Election Commission after which the Code of Conduct comes into vogue. Among the items for clearance include 54 new Kendriya Vidyalayas and GSLV-Mark III.

Marathon Cabinet meeting expected

With the schedule for the Lok Sabha likely to be announced on Saturday, the UPA government is working “feverishly” on a record number of announcements, appointments and initiatives before the model code of conduct kicks in.

The Cabinet meeting on Friday is expected to be a “marathon” one as it will be the last opportunity for the government to take policy decisions as well as ‘populist’ sops, top Finance Ministry sources told The Hindu.

The proposals lined up for Friday’s Cabinet include 54 new Kendriya Vidalayas, space programme GSLV-Mark III, a six-lane bypass for Delhi, terms of reference for the 7 Pay Commission which was set up by Prime Minister Manmohan Singh recently.

It is expected to consider Rs. 3,500 crore budget for new broadcasting infrastructure for All India Radio and Doordarshan, 10-per cent Dearness Allowance for government employees and 600 MW hydro-power projects in Bhutan. The dearness allowance hike to 100 per cent from the existing 90 per cent is expected to benefit to benefiting 50 lakh employees and 30 lakh pensioners.

New schemes have been put up for approval by the Ministries for health, tourism, water resources, human resource development and agriculture. These include expansion of government-funded PhD seats for electronic systems design and manufacturing of hardware, a new investment scheme for urea, two new highways and a health research scheme from the Human Resource Development Ministry. Some shipping and steel projects will also come up for approvals.

Officials believe some more items could be put on the block-buster agenda. A Cabinet Minister told The Hindu that the government expects the Election Commission to announce the general election schedule on Saturday or latest by Monday.
Source:http://www.thehindu.com/news/national/cabinet-committee-recommends-parliament-prorogation/article5729869.ece

Impact of raising retirement age from 60 to 62-GovtEmpDiary

It has been seen that one of the long time waging demand of raising the retirement age of govt employees has finally caught afire Through the Medias and blogging sites re abound with news that the cabinet would announce news regarding the retirement age yet it has not been finalizes Even then it has been come to known that a favorable decision would be put forth regarding this issue due to the oncoming lok sabha elections. In India the retirement ages of most of the state government employees range from 58 to 60. This is low in comparison to the government employees of foreign nation. We shall see the effect of raising the retirement age in the following passage

Advantage

1. If only 7th pay commission would be implemented in the year 2016 those retiring in the year span 2014 -2016 would be greatly benefitted.

2. Economically the employees would be in better position due to this rise of the age of superannuation

3. The pension amount and the other beneficiaries would also increase along side

4. There this chance of imparting fruitful experience to the subordinates or new recruit by those benefitted by rise in retirement age

5. More over there is chance of getting an additional MACP by the central govt employees

6. A good health psychological effect would prevail in their minds due to this boon of rising their retirement age and thus removing their fatigue

Disadvantage

1. Promotion would be greatly affected due to no retirement in the long span

2. Unemployment would come in to being due to the increase in retirement age

3. Output of work would be greatly affected if the retirement age of unhealthy employees would be increased.

This announcement would not be received in praise among those searching for employment in general
Moreover among the retirement employees this decision is receiving a mixed response as some welcome while others detest it

Source:http://www.govtempdiary.com/2014/02/impact-of-raising-retirement-age-from-age-60-to-62/

Compendium of Best Practices on Implementation of RTI Act Released

A compendium of Best Practices on implementation of RTI Act was released here today by Shri V. Narayanasamy, Union Minister of State for Personnel, Public Grievances & Pensions and Prime Minister’s Office.

The Best Practices covered in the compendium include write ups by Public authorities/citizens on areas such as transparency provisions in certain Government schemes, use of IT tools to facilitate citizens for more effective use of RTI and innovative methods to create awareness about RTI.

It is hoped that this compendium would encourage other public authorities to adopt similar practices for more effective implementation of RTI Act. This would further strengthen the RTI regime in the country and enhance its position globally.

Source:pib
Filed Under:

Government Committed to Provide Required Fund to Implement OROP: Antony

The Defence Minister Shri AK Antony has assured the Services that the Government was fully committed to implement the One Rank, One Pay (OROP) Policy and that required funds will be made available to ensure its implementation. Chairing a meeting of the top brass of the Services and senior officials of MoD, here, last evening, Shri Antony said the Finance Minister had clarified that the figure of Rs 500 crores made available to implement the scheme was only ‘indicative’.

The meeting was convened by Shri Antony to discuss the modalities for implementation of OROP. It was attended among others by the Minister of State for Defence Shri Jitendra Singh, the Defence Secretary Shri RK Mathur, Secretary Ex- Servicemen’s Welfare Smt Sangita Gairola, Secretary Defence Finance Shri Arunava Dutt, the three Service Vice Chiefs and AG from the Services Headquarters.

It was noted that “OROP implies that uniform pension be paid to the Armed Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension to be automatically passed on to the past pensioners. This implies bridging the gap between the rate of pension of the current pensioners and the past pensioners, and also future enhancements in the rate of pension to be automatically passed on to the past pensioners”.

Shri Antony directed that the Controller General of Defence Accounts should initiate immediate necessary steps in consultation with the three Services, MoD Finance and Department of ESW to give effect to the decision. He also emphasized that family pensioners and disability pensioners would be included. Ex-Servicemen may also be appropriately consulted by the Services, Shri Antony said.

It may be recalled that improvements in the pension for Defence Services have been effected by the Government on three occasions in recent times - in 2006, 2010 and 2013. As a result of these changes, the gap in pension amount between pre-2006 and post-2006 retirees has been bridged substantially. However, keeping in view the long- standing demand, the Government has accepted the principle of OROP for Defence Services.

Source:pib

Wednesday, February 26, 2014

HOT NEWS REGARDING DA JANUARY 2014 -ZEE NEWS

DA likely to be hiked by 10% on Friday

New Delhi: The Union Cabinet is likely to approve hiking dearness allowance to 100 percent from existing 90 percent benefiting 50 lakh employees and 30 lakh pensioners in it meeting scheduled on Friday.

"The Union Cabinet will take a proposal to hike Dearness allowance for its employees and dearness relief for its pensioners to 100 percent this Friday as per agenda listed for the meeting," a source said.

This increase in the dearness allowance by the UPA-2 government comes ahead of the imposition of the model code of conduct by the Election Commission.

The model code of conduct is likely to come into force with the announcement of the schedule for the forthcoming general elections in a week or so.

Also it would be the second double digit DA hike in a row. The government had announced a hike of 10 percent to 90 percent in September last year, effective from July 1, 2013.

The hike in DA would be effective from the January 1 this year.

As per practice, the government uses Consumer Price Index- Industrial Workers data of the past 12 months to arrive at a quantum for the purpose of any DA hike. Thus, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter.

According to the provisional data released by government on January 31, the retail inflation for factory workers for the month of December stood at 9.13 percent. The revised retail inflation data for January would be released on February 28.

An official said that the preliminary assessment suggests that DA hike will not be less than 10 percent and would be effective from January 1 this year.
PTI

Source:http://zeenews.india.com/business/news/economy/dearness-allowance-likley-to-be-hiked-by-10-on-friday_95123.html

Centre may raise age of retirement by 2 years to 62

General elections' dates may be notified on March 5

The Congress-led United Progressive Alliance (UPA) is likely to take a major decision of increasing the retirement age of Central government employees by two years, from 60 to 62 this week. This would be applicable from March 1.

It would be one of the major decisions to be taken by the Cabinet before the model code of conduct for the general elections kicks in. In the Thursday meeting, the Cabinet is also likely to recommend dates for the elections. These could be notified on March 5.

"The government may clear the increase in age this week," said a source. It is likely to be a part of the terms of reference of the Seventh Pay Commission, expected to file its report in 2017. The panel, however, can recommend an interim relief through the move.

The increase in retirement age would be happening after 15 years. In 1998, it was increased to 60 from 58 following implementation of the Fifth Pay Commission. Experts said it would defer payment of retirement benefits. However, sources confirmed this would not be applicable for employees retiring on February 28.

The cabinet is expected to discuss a proposal to increase the dearness allowance by 10 per cent from January 1, to make it 100 per cent and merge 50 per cent of the increased dearness allowance with basic pay. The terms and conditions of the panel include a proposal to merge 50 per cent of dearness allowance with basic pay.

The move to increase the retirement age may pressure the states to follow. The department of personnel and training was working on the proposal for quite some time. The Budget estimate on the pension outgo for 2014-15 is Rs 80,982 crore, 0.6 per cent of the gross domestic product

Source:http://www.business-standard.com/article/economy-policy/centre-may-raise-age-of-retirement-by-2-years-to-62-114022600007_1.html

The Cabinet is likely to set the terms of reference of the 7th Pay Commission this week

Cabinet likely to set pay commission's terms this week

The Cabinet is likely to set the terms of reference of the 7th Pay Commission this week, paving the way for salary revision of over 50 lakh central government employees.

The matter will be finalised at the proposed meeting as the government wants to settle the matter before model code of conducts are notified ahead of the general election, scheduled in April-May this year.

The government has already approved the composition of the commission for revision of salaries of central government employees, including Railways and Defence. It would also revise the remuneration for 30 lakh pensioners.

Former Supreme Court Judge Ashok Kumar Mathur, who also headed the Armed Forces Tribunal, will head the 7th Pay Commission. It has been mandated to submit its report in two years and its recommendations are to be implemented from January 1, 2016.

The other members of the Commission include Oil Secretary Vivek Rae (full time Member), NIPFP Director Rathin Roy (part- time Member) and OSD in Expenditure Department Meena Agarwal (Secretary).

In September, Prime Minister Manmohan Singh had approved the setting up of the Commission.

The government constitutes Pay Commission almost every 10 years. Often the revisions are adopted by states as well after some modification.

The 6th Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and fourth from January 1, 1986.

Source:http://www.business-standard.com/article/pti-stories/cabinet-likely-to-set-pay-commission-s-terms-this-week-114022501003_1.html

Tuesday, February 25, 2014

Basic Pay and DA after 50% DA Merger? – Gconnect

WHAT WILL BE THE DIFFERENCE IN BASIC PAY AND DA AFTER 50% DA MERGER ?

An Estimation in respect of entry level pay in pay band applicable to Four Grade Pay which will fall in to each of four 6CPC revised Pay Scales PB-1, PB-2, PB-3, and PB-4

While all Central Government Employees across India are eagerly awaiting 50% DA Merger with Pay, we have attempted to estimate the difference in basic pay and DA after 50% DA Merger for entry level pay in pay band applicable to Four Cadres with Grade Pay Rs.2400, Rs. 4200, Rs.5400 and Rs. 8700/-
Basis for Estimating difference in Basic Pay and DA after 50% DA Merger

In 2004, when 50% DA Merger was made before implementation of 6th Pay Commission Report, applicable DA prior to DA merger was 61%. Then a new pay called Dearness Pay was created by taking 50% of basic pay and new DA @ 11% was calculated on basic pay and dearness pay as detailed below

Basic Pay (Rs)   DP Total  BP  DA@11% 
 6500  3250  9750  1073

CALCULATION OF DIFFERENCE IN BASIC PAY AND DA FOR PROPOSED 50% DA MERGER

Note: 1. This is only an estimation. Order for DA merger is yet to be issued by Government. Applicability and actual benefit will be known only after issue of formal orders for 50% DA merger.

2. We have taken in to account only the pay in pay band and grade pay for additional benefit out of DA merger. The impact of DA merger can also be calculated in respect of HRA and TA.

3. As DA eligibility as on 01.01.2014 is 100%, we have estimated the DA after 50% DA merger as on 01.01.2014 as 50%. The actual DA granted by Government from 01.01.2014 will be known only after issue of DA orders with effect from 01.01.2014.

4. We have estimated difference in Basic Pay and DA in respect of entry level pay in pay band applicable to Four Grade Pays Viz., Rs.2400, Rs.4200, Rs. 5400 and Rs. 8700, which will fall in to 6CPC revised Pay Scales PB-1, PB-2, PB-3, and PB-4 respectively. Similarly, in respect of other grade pay in 6CPC revised pay scales also difference in Basic Pay and DA on account of 50% DA merger can be calculated

6CPC Pay Scale PB-1 Rs.5200-20200

Pay in Pay Band – Rs. 7440
Grade Pay -Rs. 2400
Total Basic Pay – Rs. 9840

 DA 100 % Total BP + DA after Merger (Rs)
 9840  19680

Total Pay After 50% DA Merger

Pay in Pay Band – Rs. 7440
Grade Pay – Rs. 2400
Dearness Pay (50% of pay in pay band and Grade Pay) – Rs. 4920
Total Basic Pay – Rs. 14760

 DA 50% Total BP + DA after Merger (Rs) 
 7380  22140

Additional Basic Pay and DA on account of DA Merger as on 01.01.2014 – Rs. 2460/-

6CPC Pay Scale PB-2 Rs. 9300-34800

Pay in Pay Band – Rs. 9300/-
Grade Pay – 4200/-
Total Basic Pay – Rs. 13500/-

DA 100 %   Total BP + DA before Merger (Rs)
 13500  27000

Total Pay After 50% DA Merger

Pay in Pay Band – Rs. 9300/-
Grade Pay – Rs. 4200/-
Dearness Pay (50% of pay in pay band and Grade Pay) – Rs. 6750/-
Total Basic Pay – Rs. 20250/-

DA 50%    Total BP + DA after Merger (Rs)
 10125  30375

Additional Basic Pay and DA on account of DA Merger as on 01.01.2014 – Rs. 3375/-

6CPC Pay Scale PB-3 Rs. 15600-39100

Pay in Pay Band – Rs. 15600/-
Grade Pay 5400
Total Basic Pay – Rs. 21000/-

 DA 100 % Total BP + DA before Merger (Rs) 
 21000  42000

Total Pay After 50% DA Merger

Pay in Pay Band – Rs. 15,600/-
Grade Pay – Rs. 5400/-
Dearness Pay (50% of pay in pay band and Grade Pay) – Rs. 10,500/-
Total Basic Pay – Rs. 31500

DA 50%  Total BP + DA after Merger (Rs) 
 15750  47250

Additional Basic Pay and DA on account of DA Merger as on 01.01.2014 – Rs. 5250/-

6CPC Pay Scale PB-4 Rs. 37400-67000

Pay in Pay Band – Rs. 37,400/-
Grade Pay Rs. 8700/-
Total Basic Pay – Rs. 46,100/-

DA 100 %   Total BP + DA before Merger (Rs)
 46100  92200

Total Pay After 50% DA Merger

Pay in Pay Band – Rs. 37400/-
Grade Pay – Rs. 8700/-
Dearness Pay (50% of pay in pay band and Grade Pay) – Rs. 23,050/-
Total Basic Pay – Rs. 69,150/-

DA 50%   Total BP + DA after Merger (Rs) 
 34575  1,03,725

Additional Basic Pay and DA on account of DA Merger as on 01.01.2014 – Rs. 11,525/-

Source:http://www.gconnect.in/orders-in-brief/pay-allowances/pay/basic-pay-da-50-da-merger-estimation.html

INCENTIVE BONUS FOR EXAMINERS OF QC IN ORDINANCE FACTORIES.

BHARATIYA PRATIRAKSHA MAZDOOR SANGH
CENTRAL OFFICE: 2-A, NAVEEN MARKET, KANPUR – 208001, PH & FAX : (0512) 2332222
MOBILE: 09415733686, 09235729390, 09335621629, WEB : www.bpms.org.in

REF: BPMS / MOD / 72(7/3/R) Dated: 15.02.2014

To,
The Joint Secretary (P&C),
Department of Defence Production,
Govt of India, Min of Defence,
South Block, DHQ PO,
New Delhi – 110011.

Subject: Motivation through Incentive Bonus to Examiners of QC in Ord Fys.

Respected Madam,

With due regards, your attention is invited to meeting held with your good self and BPMS reps on 12.12.2013 wherein one of the issues was raised regarding grant of incentive bonus to Examiners of Quality Control in Ordnance & Ordnance Equipment Factories and you had assured to do the needful.
This letter is to bring to your kind notice that vide OFB letter No. 108/POLICY/TS/QCS, Dated 12.09.2012 addressed to Sr GM /GM of all Ord Fys, the then DGOF & Chairman OFB had reflected his concerns over the ‘Quality Management System in Ordnance Factories’ which needs improvement to enhance User’s confidence in our products.

In this regard, this federation vide letter no. BPMS / OFB / 72(7/3/R), dated 19.09.2012 urged the then DGOF & Chairman, OFB to give some incentive to Examiners at least on par with Maintenance workers to motivate the Examiners, to contribute their knowledge, experience cent percent to the organization.
This federation has been grateful to the OFB on considering the above in correct perspective and for inviting the comments from Sr GMs/GMs of all Ordnance Factories whether Examiners may be provided some incentives. It is learnt that almost all Sr GMs/GMs have recognized the role of Examiners and recommended to grant incentive to Examiners at least on par with Maintenance workers. Since then the matter is pending in OFB.

Therefore, you are requested to take necessary action on priority to give Incentive Bonus to Examiners of QC at least on par with Maintenance Workers to boost the morale of Examiners and remove their apathetic attitude.

Thanking you.
Sincerely yours
(MUKESH SINGH)
Secretary/BPMS &
Member, JCM-II Level Council (MOD)

              BHARATIYA PRATIRAKSHA MAZDOOR SANGH
(AN ALL INDIA FEDERATION OF DEFENCE WORKERS)
(AN INDUSTRIAL UNIT OF B.M.S.)
(RECOGNISED BY MINISTRY OF DEFENCE, GOVT. OF INDIA)
CENTRAL OFFICE: 2-A, NAVEEN MARKET, KANPUR – 208001, PH & FAX : (0512) 2332222
MOBILE: 09415733686, 09235729390, 09335621629, WEB : www.bpms.org.in

REF: BPMS / OFB / 72(7/3/R) Dated: 15.02.2014

To,                                                     REMINDER-II
The DGOF & Chairman,
Ordnance Factory Board,
10 A, S K Bose Road,
Kolkata – 700001

Subject: Motivation through Incentive Bonus to Examiners of QC in Ord Fys.

Reference: This federation’s letter of even no., dated 19.09.2012, 22.01.2013 & 30.09.2013

Respected Sir,

With due regards, your attention is invited to OFB letter No. 108/POLICY/TS/QCS, Dated 12.09.2012 addressed to Sr GM /GM of all Ord Fys whereby the then DGOF & Chairman OFB had reflected his concerns over the ‘Quality Management System in Ordnance Factories’ which needs improvement to enhance User’s confidence in our products.

In this regard, this federation vide letters cited under reference urged the then DGOF & Chairman, OFB to give some incentive to Examiners at least on par with Maintenance workers to motivate the Examiners, to contribute their knowledge, experience cent percent to the organization.

This federation has been grateful to OFB on considering the above in correct perspective and for inviting the comments from Sr GM/GM of all Ordnance Factories whether Examiners may be provided some incentives. It is learnt that almost all Sr GMs/GMs have recognized the role of Examiners and recommended to grant incentive to Examiners at least on par with Maintenance workers. Since then the matter is pending in OFB.

Therefore, you are requested to boost the morale of Examiners and remove their apathetic attitude, kindly take necessary action on priority to give Incentive Bonus to Examiners of QC at least on par with Maintenance Workers.

Thanking you.
Sincerely yours
(MUKESH SINGH)
Secretary/BPMS &
Member, JCM-II Level Council (MOD)

Source:BPMS

Monday, February 24, 2014

Sanction of Pension Simplified and Streamlined

As a part of a larger mandate of streamlining and simplifying the sanction of pension and payment process, the Department of Pension and Pensioners’ Welfare has taken steps towards minimizing delays in sanction and disbursement of pension, and making the process more transparent.

The objective is to simplify the forms as well as to do away with the requirement of submission of affidavit and to accept all information and documents on the basis of Self certification. 26 forms under CCS Pension Rules (1972) have been reviewed and modified where necessary. The revised forms have been posted on the website of the Department www.persmin.nic.in.

The Department proposes to dispense with the requirement of a number of nomination forms for various benefits like GPF, CGEGIS, arrear of Pension and commutation of Pension by the employees. Instead, an employee will be required to fill up only one Nomination Form during the service and another nomination Form at the time of retirement. Amendment to the Forms and relevant rules in this respect would be notified by the Department very soon.

Revision of Forms under General/Contributory Provident Fund Rules, Extraordinary Pension Rules and Commutation of Pension Rules is under process. The Department is also reviewing the Rules with a view to reducing the time prescribed for sanction of pension from the current 24-30 months to a more reasonable 12 months.

An online pension sanction and payment tracking system ‘Bhavishya’ has been launched, initially in 15 Ministries. This will enable retiring government servants to themselves track progress of sanction of pension and other retirement dues against the time lines prescribed.

Source:pib

This week may bring cheer to central employees and pensioners (Merger of 50% D.A., an additional hike of 10% D.A)

Central Govt. employees and pensioners will find reasons to celebrate this week. The union cabinet is likely to clear some long awaited demands for it's staff in the next meeting later this week The F.M., currently on foreign tour, likely to return India on 26th February and after which cabinet meeting is likely to take place.

 According to information available with us, merger of 50% D.A., an additional hike of 10% D.A. from 01.01.2014, granting of Interim Relief and enhancing retirement age to 62 years are under the consideration of Govt. and some of these are to be approved in the next cabinet meeting.
 As the notification of loksabha poll may be issued in the first week of March, this would be the last cabinet meeting before the code of conduct comes into force. So the central employees and pensioners may definitely hope for some bonanza to be announced this week.

West Bengal CM wants centre to pay state employees' DEARNESS ALLOWANCE(D.A).

Kolkata, Feb 22 (PTI) Centre should come forward and pay the dearness allowance of state government employees as well, West Bengal Chief Minister Mamata Banerjee demanded today.
"Whenever the Centre announces DA, state government employees should be given the same on a par (with central government employees).
"They (Centre) give it (to central government employees) before elections. Will others (state government employees) suck their thumbs?" Banerjee asked.
"We want the Centre to pay the DA for (state government) employees," Banerjee said.

Courtesy:http://paycommissionupdate.blogspot.in/2014/02/west-bengal-cm-wants-centre-to-pay.html

No Change in Refund Rules Pertaining to Cancellation of Confirmed Train Tickets

A section of media, have published news regarding changes in the Railway Refund Rules. In this regard, the Ministry of Railways  clarifies that there has been no change in the Refund Rules which have been notified in June 2013 and have been brought into force with effect from 1st July, 2013. According to the notified refund rules, passengers on a confirmed ticket can avail refund upto 50% of the fare provided the ticket is cancelled within 2 hours of the departure of the train.

For the purpose of clarification, the refund rules relating to cancellation of unused confirmed reserved tickets are summarized here below:-

                                                                                 i.            if the ticket is presented for cancellation more than forty eight hours in advance of the scheduled departure of the train, a minimum per passenger cancellation charge shall be deducted at the flat rate of rupees one hundred and twenty for air-conditioned first class/executive class, rupees one hundred for air-conditioned-II tier/first class, rupees ninety for air-conditioned III-tier/ 3 economy/air-conditioned chair car, rupees sixty for sleeper class and rupees thirty for second class.
                                                                               ii.            if the ticket is presented for cancellation between forty eight hours and upto six hours before the scheduled departure of the train, cancellation charge shall be twenty five per cent of the fare subject to a minimum of the cancellation charge.          
                                                                              iii.            if the ticket is presented for cancellation within six hours before departure and upto two hours after the actual departure of the train, the cancellation charge shall be fifty per cent of the fare subject to a minimum of the cancellation charge.
                                                                             iv.            No refund shall be granted on the reserved ticket if it is surrendered for cancellation after two hours of the actual departure of the train.                

Passengers may continue to avail refund of confirmed tickets under the above rules as there is no change in the Refund Rules.

   

Again the refund rules relating to cancellation of Unused waitlisted or RAC tickets are summarized here below:-

If a Waitlisted/RAC ticket is presented for cancellation, refund of fare shall be admissible after deducting the clerkage as per following:-

a.             The ticket is presented for cancellation upto three hours after the actual departure of the train irrespective of the distance.
b.            The passenger may get the tickets cancelled from any PRS counters or the designated current counters.
c.             No refund of fare shall be granted on RAC ticket /Waitlisted ticket after three hours of the actual departure of the train.
d.            In case no current counters are available at journey originating station for night trains leaving between 21.00 hours and 06.00 hours(actual departure , refund shall be admissible at the station within first two hours after the opening of reservation office.
e.            In remote and hill areas as identified by the Zonal Railways with the prior approval of the General Managers and print in their Time Tables for train leaving between 1900 hours and 0600 hours (actual departure) refund shall be admissible at the station within first two hours after the opening of reservation/booking office, in case there is no reservation counters/booking office/ current counters. Available in that area.

Similarly, the refund rules relating to cancellation of e-tickets and Tatkal Tickets have also been notified which are effective from July 1, 2013.

Further, under special circumstances like bandhs or agitations or floods, etc. where the passengers could not reach the reservation counters or stations for cancellation of tickets, a TDR (Ticket Deposit Receipt) shall be issued to the passenger upto three days after the scheduled departure of the train and the passengers may apply for refund of fare within ten days from the scheduled commencement of journey to the Chief Commercial Manager (Refunds), of the Zonal Railway concerned. The refund application shall then be considered on its merits based on the circumstances of the case.

Commercial circular no. 6 of 2014 dated 21.2.2014 is an internal circular seeking to remove the inconsistency between the computerised application (based on earlier circular of 2004) and the notified refund rules. Under this circular of 21.02.2014, CRIS has been advised to make requisite changes in the computerised PRS application so that the computerised application is aligned and made consistent with the Refund Rules and to ensure that the refunds are issued in accordance with the notified rules.

Passengers shall continue to get refunds across the counters for all waitlisted and confirmed tickets as per refund rules provided such refunds are sought within the prescribed time limits.
 Source:pib
Filed Under: , ,

Union Cabinet to allow merger of dearness allowance with basic pay for central government employees

The Union Cabinet could approve a proposal to merge dearness allowance (DA) with basic pay, benefiting about 50 lakh central government employees and 30 lakh pensioners.

The Cabinet may also hike dearness allowance (DA) by 10 percent to 100%.

As per practice, the DA is merged with basic pay when it breaches the 50% mark. DA merger helps employees as their other allowances are paid as a proportion of basic pay.

The government had announced a hike of 10 percent to 90 percent in September last year, effective from July 1, 2013.

According to officials, the preliminary assessment suggests that dearness allowance hike will not be less than 10% and would be effective from January 1 this year.

The government uses CPI-IW data of the past 12 months to arrive at a quantum for the purpose of any DA hike. Therefore, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter.

Source:http://www.dnaindia.com/money/report-union-cabinet-to-allow-merger-of-dearness-allowance-with-basic-pay-for-central-government-employees-1964274

LATEST NEWS- 50% DEARNESS ALLOWANCE (DA) MERGER

Central gazetted officers finalise demands

A workshop organised by the Confederation of Central Government Gazetted Officers’ Organisations, Tamil Nadu region, has finalised the common minimum demands to be placed before the 7 Central Pay Commission, including a just and equitable pay at the entry level of Group ‘B’ officers.

It was also agreed upon at the workshop here on Saturday to demand a joint consultative machinery to redress their grievances and a minimum of five promotions during their tenure — from entry to Group ‘B’ level either by promotion or direct recruitment.

The workshop for the constituents of the Confederation sought merger of 50 per cent dearness allowance for all purposes with effect from January 1, 2011 or 100 per cent DA with effect from January 1, 2014 for the serving officers. Other demands included free and hassle-free medical facilities to Group ‘B’ officers and adequate travel entitlements.

Source:http://www.thehindu.com/news/national/tamil-nadu/central-gazetted-officers-finalise-demands/article5490705.ece

MERGE 100% DA WITH BASIC PAY-AIRF

New Delhi: February 21, 2014 - All India Railwaymen’s Federation(AIRF) has addressed the issue of merger of 100% Dearness Allowance with Basic Pay for all purposes w.e.f. 01.01.2014 to Hon’ble Prime Minister of India and the Finance Minister, Government of India, as Dearness Allowance will cross 100%. Unfortunately, there is no heed to this issue despite agitations at length over the Indian Railways by the AIRF.

It is also unfortunate that due 10% Dearness Allowance w.e.f. 1st January, 2014 has still not been announced by the Government of India.

AIRF earnestly requests the Government of India to immediately announce Dearness Allowance w.e.f. 1st January, 2014 all along with merger of 100% Dearness Allowance with Basic Pay.

For General Secretary 
All India Railwaymen’s Federation
Source: AIRF


Saturday, February 22, 2014

DA Merger & 7th CPC Terms of Refrence News

Merger of D.A., granting interim relief and enhancing superannuation age are definitely being actively considered by the Govt.  Hindu Business lines, Business standard, Economic times  and Vijaya Karnataka News papers has published it was discussed in the union Cabinet meeting & same has been approved. As per news paper reports the decisions taken are to refer to 7th CPC regarding DA merger &  IR. If these reports are true then we have to wait for next week for notification orders.

Click here for Hindu News

Click here FOR VIJAYAKARNATAKA NEWS PAPER

Business Standard:

Among the flurry of proposals cleared by the cabinet yesterday was the terms of reference for the new Pay Commission.

Click here FOR BUSINESS STANDARD NEWS REPORT


ECONOMIC TIMES Click here

The  Government has not issued any statement so far on this issue Finance Minister Shri P Chidambaram will visit Australia as per the schedule he will attend the G20 meeting on February 22 and 23, followed by investor conferences on February 24 and 25. and if the above reports are not correct then it is most likely that cabinet will take any decision only after his return from abroad. So good news may be expected in the next weekend.

Source:http://karnatakacoc.blogspot.in/2014/02/da-merger-7th-cpc-terms-of-refrence-news.html

Empanelled Hospitals Under CGHS

CGHS empanels private hospitals and diagnostic laboratories through tender process issued from time to time. E- Tenders have been invited vide Tender Notice dated 22 / 23rd January, 2014 from private hospitals and diagnostic centres for empanelment. The detailed terms and conditions for empanelment under CGHS are available on the CGHS website at http://msotransparent.nic.in/cghsnew/index.asp

Empanelment of Bapu Nature Cure Hospital Yogashram, Delhi under CGHS was suspended for deficiency in service w.e.f .12/09/2012. Suspension has been revoked wef 7/5/2013 after re-inspection.

Max Devki Devi Hospitals, New Delhi has informed that they would not provide credit facility and their empanelment was suspended wef 13/2/2013.

Max Super specialty hospital did not want to continue empanelment after completion of period under MOA and was removed from CGHS panel wef 13/2/2013.

St. Stephen’s Hospitals did not want to continue empanelment after completion of period under MOA and was removed from CGHS panel wef 5/4/2013.

Escort’s Heart Institute did not want to continue empanelment after completion period under MOA and was removed from CGHS panel wef  13/2/2013.

Action Balaji Institute , Delhi did not want to continue empanelment after completion of period under MOA and was removed from CGHS panel wef 5/4/2013.

Dr. Garg’s Multi Speciality Hospital was removed from CGHS panel wef 18/12/2012 for irregularities in billing.

Orthonova Hospital, New Delhi was removed from CGHS panel for deficiency in service wef 18/12/2012.

         Jain Neurological Centre was suspended from CGHS panel wef 18/12/2012 for deficiencies in facilities. Subsequently it was re-inspected and the empanelment was restored wef 26/7/2013

Kalra Hospital was suspended from CGHS panel wef 18/12/2012 for deficiencies in facilities. Subsequently it was re-inspected and the empanelment was restored wef 9/4/2013.

There were complaints of refusal of providing credit facility by Saket Hospital and their empanelment was suspended wef 13/9/2013.The empanelment has since been restored after inspection wef 28/1/2014.

Requests are received from time to time for reinstatement of suspended hospitals and action is taken on merits.

This was stated by Shri Ghulam Nabi Azad, Union Minister for Health and Family Welfare in a written reply to the Lok Sabha today.

Source:pib

Transfer Policy in CGHS

There is rotational transfer policy for sensitive/non-sensitive post holders under Central Government Health Scheme (CGHS) with transfer of staff posted at sensitive posts in two years and at non-sensitive posts in three years.

Transfers are made in CGHS on regular basis. However, in certain cases officers are allowed to continue keeping in view the exigencies of administration and public interest. Recently, Committees have been constituted for transfer and posting in respect of different categories of CGHS officers.

This was stated by Shri Ghulam Nabi Azad, Union Minister for Health and Family Welfare in a written reply to the Lok Sabha today.

Source:PIB
Filed Under: ,

Facilities to CGHS Beneficiaries

Under Central Government Health Scheme, there is no provision for treatment abroad. However, the treatment abroad facility is available under the Central Services (Medical Attendance) Rules, 1944. Permission for treatment abroad is granted with the approval of Standing Committee headed by the Director General of Health Services only in the cases in which the treatment is not available in India. The facility is available to all Central Government employees. On an average, 2 cases have been allowed per year in last three years for availing treatment abroad with the approval of the Standing Committee.

Every Department has separate budget provision for providing medical treatment to their employees. Accordingly, the expenses incurred on availing medical treatment by the serving employees under CGHS or CS (MA) Rules are reimbursed by the Department concerned to their employees. The employees of Ministry of Health and Family Welfare covered under CGHS have been allowed credit facility in empanelled hospitals for the sake of administrative convenience as the payments to the CGHS empanelled hospitals for providing medical treatment to the pensioner beneficiaries are also released by this Ministry. However, as per the terms and conditions of empanelment under CGHS, the empanelled hospitals are to provide treatment on cashless basis to all serving employees covered under CGHS for treatment under medical emergency.

The CGHS package rates for Angioplasty and Angioplasty with Balloon were revised in February, 2013 as per the advice of experts. The empanelled hospitals are expected to provide treatment as per the approved package rates. The ceiling rates for implants are revised from time to time and if any beneficiary intends to have implants of a specific brand, he/she can opt for the same if he/she agrees in writing to bear the additional expenditure.

This was stated by Shri Ghulam Nabi Azad, Union Minister for Health and Family Welfare in a written reply to the Lok Sabha today.

Source:pib
Filed Under:

Timing of CGHS Dispensaries

The working hour of CGHS dispensaries in Delhi & NCR changed to 8.00 AM to 3.00 PM w.e.f. 1st April, 2013 across the country, except in case of six dispensaries in Delhi which are working for 24 hours a day. Working hours of CGHS dispensaries were revised with a view to ensure optimum utilization of scarce manpower resources of CGHS to improve the functioning of CGHS and also the satisfaction level of CGHS beneficiaries. Doctors are now able to devote more time towards patient care with revised working hours of 8.00 AM to 3.00 PM.

The timings were earlier revised and fixed from 9.00 AM to 4.00 PM w.e.f. 1st January, 2013 in Delhi NCR on experimental basis. A no. of representations were received against the revised timings, mainly from the serving employees on the ground that they cannot reach office in time if they visit CGHS dispensaries with opening time of 9.00AM. On the other hand, a demand was raised in the 22nd meeting of Standing Committee of Voluntary Agencies (SCOVA) held under the chairmanship of Hon’ble Minister of State for Ministry of Personnel, Public Grievances & Pension for revision of working hours of CGHS Wellness Centres like Delhi NCR. Accordingly, a detailed discussion was held on this issue in the meeting of Additional / Joint Directors of all CGHS cities held on 5-6 March, 2013 in New Delhi. On the basis of discussion held during the meeting and the feedback received from the beneficiaries, it was decided to revise the working hours of the CGHS Wellness Centres in all CGHS cities across the country with the new timings of 8:00 AM to 3: 00 PM with 1:00 to 1:30 as lunch break.

Certain requests have been received to restore the earlier timings of Wellness Centres of 7.30 AM to 1.30 PM. However, in view of the (a) and (b) above and in the public interest, there is no proposal to change the timings.

This was stated by Shri Ghulam Nabi Azad, Union Minister for Health and Family Welfare in a written reply to the Lok Sabha today.

Source:pib
Filed Under: ,

Supply of Generic Drugs in CGHS

Under the Drugs and Cosmetics Act, 1940 provisions related to manufacture and sale of drugs are administered by the State Drugs Control Authorities appointed by the State Governments. The information in respect of licenses issued by the State Licensing Authorities in each year is not maintained centrally.

Local chemist authorized by Central Government Health Scheme supply the same drugs which are indented by the Wellness Centres. A certain discount is also given by them on the MRP in consonance with the Memorandum of Agreement (MoA) signed by them. Penalties can be imposed on the Authorised Local Chemist for substituting the indented medicines.

This was stated by Shri Ghulam Nabi Azad, Union Minister for Health and Family Welfare in a written reply to the Lok Sabha today.
Source:pib
Filed Under: ,

Grant of compensation in lieu of rent free accommodation

 No. 2/1/2014-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, 21st February, 2014.
OFFICE MEMORANDUM

Subject:- Grant of compensation in lieu of rent free accommodation.

The undersigned is directed to refer to this Ministry’s O.M No 2(7)/1997-E. 11(8) dated 14.03.2008 on the subject mentioned above and to say that consequent upon revision of rates of licence fee for residential accommodation under Central Government all over the country w.e.f. 01.07.2010 and also w.e.f. 01.07.2013 vide Government of India, Ministry of Urban Development (Directorate of Estates) OM.No.18011/1/2009-Pol.III dated 28.04.2011 and O.M No 18011/1/2013-Pol.III dated 21.11.2013 respectively, the question of revision of the amount of compensation in lieu of Rent Free Accommodation in so far as it relates to the component of licence fee has been under consideration of the Government for some time.

2. The matter has been considered and the President is pleased to decide that the Central Government employees who are entitled to the facility of rent free accommodation in accordance with the Ministry of Urban Development (Directorate of Estates) O.M. No.12/11/60-ACC-l dated 02.08.60 and who have not been provided with such accommodation, will be entitled to compensation in lieu of rent free accommodation as under:-

(i) the lowest amount charged as licence fee for the entitled type of accommodation as fixed w.e.f. 01.07.2010 & w.e.f. 01.07.2013 in terms of Government of India, Ministry of Urban Development (Directorate of Estates)’s above mentioned OMs dated 28.04.2011 and 21.11.2013 respectively; and

(ii) House Rent Allowance admissible to corresponding employees in that classified city in terms of this Ministry's O.M. No.2(13)/2008-E.ll(B) dated 29.08 2008 as amended from time to time.

3. These orders take effect from 01 .07.2010 & 01 .07.2013 with reference to Dte. of Estate's O.Ms. ibid dated 28.04.2011 and 21.11.2013 respectively, ie. the dates from which the flat rates of licence fee were revised.

4. All other conditions, laid down in this Ministry’s O.M. No 11015/4/86-E.ll(B) dated 19.02.87, 22.05.87 and 04.05.88 shall continue to be applicable, while regulating grant of compensation in lieu of rent free accommodation under these orders.

5. In so far as the persons serving under the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller & Auditor General of India .
sd/-
(A. Bhattacharya)
Under Secretary to the Govt. of India

Source:[http://finmin.nic.in/the_ministry/dept_expenditure/notification/misc/Grant_Comp_rent21022014.pdf]

Execution of Bond for availing Study Leave under rule 53(4) of the CCS(Leave) Rules, 1972 - regarding.

No. 13026/4/2012-Estt.(L)
Bharat Sarkar/Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
New Delhi, the 18 February. 2014

OFFICE MEMORANDUM

Subject: Execution of Bond for availing Study Leave under rule 53(4) of the CCS(Leave) Rules, 1972 - regarding.

The undersigned is directed to state that Government servants are allowed to avail “Study Leave’ in terms of the provisions of rules 50-63 of the CCS (Leave) Rules, 1972. The provisions of rule 53(4) mandates for execution of a bond by the Government Servant who is granted such leave in the relevant format prescribed for the said purpose i.e. Forms 7-10 of the CCS (Leave) Rules, 1972.

2. The said Bond executed by the Government servant requires putting in specified period of service after expiry of the Study Leave as prescribed by provisions of rule 50(5) of the said rules.

3. It has come to the notice of this Department that the provisions of the aforesaid bond are being circumvented and officers who have availed Study Leave proceed on prolonged spells of leave due and admissible to them and thus do not put in active service for the requisite period as indicated in the bond executed by them.

A. In view of the above position, the provisions of the prescribed format of the Bond have been reviewed in consultation with the Department of Legal Affairs and it has been decided that the prescribed forms 7, 8, 9 and 10 of the CSS (Leave) Rules, 1972 may be revised by incorporating a specific clause confirming commitment of the Government servant to put in requisite active service after expiry of the Study Leave. The copies of the revised formats are enclosed herewith. The grant of Study Leave shall continue to be regulated in terms of the relevant provisions of the rules as indicated in para 1 above. Ministry of Home Affairs etc are requested to ensure that the necessary Bond in respect of grant of Study Leave under the CCS (Leave) Rules, 1972 may henceforth be obtained in the revised formats.

5. These orders are being issued after consultation with the C&AG of India in respect of persons serving in the Indian Audit & Accounts Department.

6. Formal amendments to CCS (Leave) Rules, 1972 are being issued separately.

sd/-
(Mukul Ratra)
Director (L&A)
Source: www.persmin.nic.in
Filed Under: ,

Friday, February 21, 2014

Merger of 50% DA with Pay and grant of Interim Relief.NFIR

NFIR
National Federation of Indian Railwaymen

No.II/95/Pt. VI
Dated: 20/02/2014
The General Secretaries of
Affiliated Unions of NFIR.

Brother,

Sub: Merger of 50% DA with Pay and grant of Interim Relief.

NFIR has been writing to the Government of India (including Prime Minister, Finance Minister etc) for merger of 50% DA with pay through its letters dated 10/01/2013, 05/08/2013, 27/09/2013. Also in its 27th National Convention held at Visakhapatnam from 10th  to 12th December, 2013, the Federation had passed a resolution demanding merger of 50% DA with Pay and grant of interim relief to employees of Central Government including Railway employees.

NFIR feels happy to convey that the Central Government has conceded the demand of the employees raised by the Federation.

Union Cabinet is likely to consider the issues to day for taking final decision. Federation will advise decision when taken by the Government. Federation expects that there may be Good News for all Central Government employees very soon.

Yours faithfully,
sd/-
(M.Raghavaiah)
General Secretary

Source:NFIR

Terms of reference for 7th pay commission

In order to benefit over 50 lakh employees and over 30 lakh pensioners, the Cabinet also approved terms of reference for seventh pay commission. This includes merging dearness allowance above 50 per cent with basic pay. Currently DA is around 90 per cent of basic pay and another hike of 10 per cent is expected soon. DA is calculated on the basis of change in retail inflation.

Source:http://www.thehindubusinessline.com/economy/policy/cabinet-okays-setting-up-of-equal-opportunity-commission-coal-regulator/article5708924.ece

Thursday, February 20, 2014

Govt likely to increase and merge dearness allowance with basic pay

.NEW DELHI: The government may increase and merge dearness allowance (DA) with basic pay with the Union Cabinet expected to include the proposal as part of the terms of reference of the 7th pay commission.

The move will facilitate announcement of interim relief to more than 50 lakh government employees and 30 lakh pensioners by the newly-constituted pay commission before the code of conduct for the Lok Sabha polls come into force.

Central government employees unions have been demanding that besides raising DA to 100%, the government should revise the pay and merge DA with basic pay, considering market inflation and price hike of essential commodities.

As per practice, DA is merged with basic pay when it breaches the 50% mark. DA merger helps employees as their other allowances are paid as a proportion of basic pay.

An official said if merger of 50% DA with basic pay was decided, it could lead to hike in salary by around 30-35%. He added that there were instances of announcing interim relief to employees apart from DA by a newly constituted pay commission prior to their implementation.

Merger of 50% DA with basic pay was done in the 5th pay commission, but the 6th commission did not recommended it.

The Centre is expected to announce next month a hike in dearness allowance by 10% which would make it 100% of basic pay. It will be the second double digit DA hike in a row as the government had announced a hike of 10% in September last year, effective from July 1, 2013.

An official said hike in DA will not be less than 10% and would be effective from January 1 this year.

Source:TOI

Government to set the terms of 7th Pay Panel today

NEW DELHI: The union cabinet will on Thursday freeze the terms of reference of the seventh pay commission, allowing the government to take credit for recalibrataion of salaries of central government employees that could take up to two years.

The cabinet will also consider a proposal to set up a non-statutory coal regulator and also another one to convert 7,200 kms of state roads to national highways, which could come handy when the UPA seeks votes.

The seventh pay commission will be headed by retired Supreme Court judge Ashok Kumar Mathur. It will submit its report in 19 months and the award will be effective January 2016, the government had said earlier this month.

The award will benefit nearly 35 lakh central government employees and also cover defence personnel.

The commission will have Petroleum and Natural Gas Secretary Vivek Rae as full time member while Rathin Roy, Director, National Institute of Public Finance and Policy will be a part time member. The terms of reference will spell out the categories of employees covered by the review that seeks to adjusts salaries usually after a decade. In the interim, central government employees get two installments of dearness allowance every year to compensate for price rise.

The government can also task the commission with any other issue tied to employee compensation.

Source:ET

Bonanza for central govt staff likely

To woo central government employees ahead of the general elections, the United Progressive Alliance (UPA) government is expected to ask the Seventh Pay Commission to consider merging 50 per cent dearness allowance (DA) with basic pay of employees. This will form part of the terms of reference (ToR) for the Commission, to be considered by the Cabinet this week.

According to officials, the Pay Commission’s ToR categorically states a proposal in this regard should be actively considered.

The increases will be even more appealing as the Centre is expected to increase the DA by 10 per cent to 100 per cent by the end of February. Usually, the DA is merged with basic pay when the former goes beyond 50 per cent. It is 90 per cent now, but has not been merged so far.

Assuming an employee gets Rs 100 as basic pay and Rs 100 as DA at present, the basic will rise to Rs 150, even if 50 per cent allowance is merged. . A higher basic pay will also impact the house rent allowance (HRA) of employees as it is calculated at 30 per cent of the basic pay for central government employees.

DA is linked to the consumer price index (industrial workers). The government uses CPI-IW data of the past 12 months to arrive at a quantum for calculating any DA hike. The allowance will be announced from January. As such, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter. The average inflation during this period had stood at 10.66 per cent.

Earlier this month, the government had constituted the Pay Commission under the chairmanship of former Supreme Court Judge Ashok Kumar Mathur.

The other members of the panel are Petroleum Secretary Vivek Rae (full-time member), National Institute of Public Finance and Policy Director Rathin Roy (part-time member) and Officer on Special Duty in the Expenditure Department Meena Agarwal (Secretary).

The Commission’s recommendations would be implemented from January 1, 2016, officials said. However, it may recommend interim relief as well, they added.

The Commission’s recommendations will directly benefit almost five million employees and three million pensioners. Employees of state governments, which will adopt the recommendations of the 7th Pay Commission will also benefit.

Some officials said the Cabinet is also expected to consider another proposal to modify the Prime Minister’s 15-point programme for minorities, which will enable allocation of at least 15 per cent of the total funds for welfare of minorities in major programmes such as National Rural Health Mission, Rashtriya Mahila Shiksha Abhiyan, Employment and Skill Development.

Source:http://www.business-standard.com/article/economy-policy/centre-plans-big-bonanza-for-central-govt-employees-114021901256_1.html

Grant of Transport Allowance to Central Government Employees – Extension of benefit of Transport Allowance at double the Normal Rates to Deaf and Dumb Employees-MOF

 No.21(2)12011-E.II(B) 
Government of India 
Ministry of Finance 
Department of Expenditure
North Block, New Delhi, 
Dated: 19th February, 2014
OFFICE MEMORANDUM

Subject- Grant of Transport Allowance to Central Government Employees – Extension of benefit of Transport Allowance at double the Normal Rates to Deaf and Dumb Employees – Implementation of the Order of the Apex Court – regarding.

The undersigned is directed to refer to Order dated 12th December, 2013 of the Hon’ble Supreme Court of India in Writ Petition (Civil) No. 107/2011 of Deaf Employees Welfare Association & Another v/s Union of India & Others, and to say that in compliance of the said judgement of the Apex Court, it has been decided to extend the benefit of Transport Allowance, as admissible to blinds and orthopaedically handicapped employees in terms of para 2 (i) of Ministry of Finance, Department of Expenditure O.M. No.21(2)/2008-E.II(B) dated 29th August, 2008, to deaf and dumb employees of the Central Government also, with immediate effect, subject to the condition that the recommendation of the Head of ENT Department of a Government Civil Hospital is received by the Head of Department and fulfilment of other conditions mentioned in Ministry of Finance, Department of Expenditure O.M.No, 19029/1/78-E IV(B) dated 31st August, 1978 read with O.M. dated 29.08.2008.

2. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, this Order issues in consultation with the Comptroller and Auditor General of India.

sd/-
(Subhash Chand)
Deputy Secretary to the Government of India

Source:www.finmin.nic.in

Wednesday, February 19, 2014

All set to hike retirement age to 62 years for CENTRAL GOVT EMPLOYEES.

It may sound ridiculous as number of times articles regarding this topic has published in different websites and newspapers. But as per our sources and media reports, centre finally decided to hike retirement age to 62 years. The process has received PM's nod and awating cabinet approval which is likely to be obtained in the next meeting.
The newly set up seventh CPC has recommended this hike in an interim report which got Govt. approval.
As per information available with us, this move will not benefit those who are going to be superannuated in this month or those who are already in extension.

Courtesy:http://paycommissionupdate.blogspot.in/

Shortage of Manpower in Passport Offices

The Minister of State in the Ministry of External Affairs Shrimati Preneet Kaur informed the Lok Sabha today in reply to a question that a number of Regional Passport Offices in the country continue to face shortage of manpower due to the gap between the sanctioned and working cadre strength of the Central Passport Organization (CPO).  To implement the Passport Seva Project, the Government had increased the sanctioned strength of the CPO cadre from 2349 to 2697 in 2008 to cater to increased demand for passport services.  However, the working strength has not reached to its optimal level due to several factors such as pending indent with the Staff Selection Commission (SSC) for the post of Assistant and Lower Division Clerks; large number of retirements/voluntarily retirements; and lack of eligible officials for promotion to higher posts.  As against the sanctioned strength of 2697, as on date, the Organization has 2000 regular employees apart from 400 Data Entry Operators who have been recruited against the vacant posts at non-Gazetted Group ‘B’ and ‘C’ level.

Despite extensive computerization, opening of new Passport Offices and reforms in the Central Passport Organization (CPO) during 2000-2006, a need was felt for change in the then existing system due to rapidly growing volume of passport seekers.  To address this need, a Mission-Mode Project titled “Passport Seva Project” was identified under the National e-Governance Plan (NeGP) of the Government of India. The basic design involves outsourcing of non-sensitive front-end activities to a service provider and retaining sovereign and sensitive functions with the Government.  77 Passport Seva Kendras (PSKs) have been set up by the Service Provider.

The Government has taken following steps to fill up the existing vacancies at the Passport Offices:

(i)  The regular placement of indent for recruitment of Lower Division Clerks and Assistants with Staff Selection Commission (SSC) and pro-active follow up with them.

(ii) To fill up the existing vacancies at the Passport Offices  through fast track promotion, wherever necessary with the relaxation of eligibility norms/down gradation of some posts and with the approval of Department of Personnel & Training and Union Public Service Commission

(iii) As per the provisions of the Recruitment Rules, the Ministry has taken officers on deputation.

(iv) As a temporary measure, the Ministry has obtained approval for engagement of 450 Data Entry Operators in lieu of vacant non-Gazetted post at Group ‘B’ and ‘C’ level.

(v) The Ministry has implemented Productivity Linked Incentive Scheme (PLIS) on 21st March, 2013, having retrospective effect, to financially incentivize individual performance measured against pre-set parameters. This has brought in increased efficiency and productivity per employee.

To implement the Passport Seva Project, the Government approved expansion of the Central Passport Organization cadre in 2008 which involved augmentation of posts from 2349 to 2697.  Thereafter, Ministry undertook a review exercise in 2010 to restructure the cadre which led to creation of 320 new Gazetted posts of Passport Granting Officers after abolition of 213 posts of Assistant and rationalization of some other posts.  In view of the 2010 exercise, there is no further proposal for cadre review at present.

 Source:pib

Special concessions/facilities to Central Government Employees working in Kashmir Valley in attached/subordinate offices or PSUs falling under the control of Central Government.

No. 18016/3/2011-Estt.(L)
Government of India
Ministry of Personnel, P.G. & Pensions
(Department of Personnel & Training)
New Delhi, the 17th February, 2014.

OFFICE MEMORANDUM

Subject:- Special concessions/facilities to Central Government Employees working in Kashmir Valley in attached/subordinate offices or PSUs falling under the control of Central Government.

The undersigned is directed to refer to this Department’s O.M. No. 18016/3/2011- Estt.(L) dated 27th June, 2012 on the subject mentioned above and to state that it has been decided to extend the package of concessions/incentives to Central Government employees working in Kashmir Valley for a further period of one year w.e.f. 01.01.2013. The revised package of incentives is as per annexure.

2. The package of incentives is uniformly applicable to all Ministries/ Departments and PSUs under the Government of India and they should ensure strict adherence to the rates prescribed in the package. The concerned Ministry/Department may ensure implementation and monitoring of the package in conformity with the approved package, and therefore, all Court cases in which verdicts are given contrary to the package would have to be contested by the Ministries/Departments concerned.

Hindi version will follow

End: As above.
(Mukul Ratra)
Director

ANNEXURE to DOPT’ s O.M. No.18016/3/2011-Estt.(L) dt. 17th February, 2014

DETAILS OF PACKAGE OF CONCESSIONS/FACILITIES TO CENTRAL GOVERNMENT EMPLOYEES WORKING IN KASHMIR VALLEY IN ATTACHED/SUBORDINATE OFFICES OR PSUs FALLING UNDER THE CONTROL OF CENTRAL GOVERNMENT.

[Kashmir Valley comprises of ten districts namely, Anantnag, Baramulla, Budgam, Kupwara, Pulwama, Srinagar, Kulgam, Shopian, Ganderbal and Bandipora]

I. ADDITIONAL H.R A. AND OTHER CONCESSIONS :

(A) Employees posted to Kashmir Valley:

(i) These employees have an option to move their families to a selected place of their choice in India at Government expense. T.A. for the families allowed as admissible in permanent transfer inclusive of transportation of personal effects, lump-sum payment for packing etc.

(ii) Departmental arrangements for stay, security and transportation to the place of work for employees.

(iii) HRA as for Class ‘Y’ city applicable for employees exercising option at (i). Such employees will be eligible for drawing the normal HRA as well at their place of posting provided Departmental arrangement is not made for his/her stay.

(iv) The period of temporary duty extended to six months. For period of temporary duty daily allowance at full rate is admissible, apart from departmental arrangements for stay, security and transportation.

(B) Employees posted to Kashmir Valley who do not wish to move their families to a selected place of residence :

A per diem allowance of Rs.10/- is paid for each day of attendance to compensate for any additional expense in transportation to and from office etc. This will be in addition to the transport allowance, which the employee is otherwise eligible for under Ministry of Finance order No. 21(2)/2008-E.II(B) dated 29.08.2008.

II. MESSING FACILITIES :

Messing Allowance to be paid to the employees at a uniform rate of Rs.15/- per day by all Departments, or in lieu messing arrangements to be made by the Departments themselves. This rate of allowance will have to be adhered to uniformly by all the Ministries/Departments with effect from 01.07.1999. The slightly higher rate of Rs.25.50/- adopted by the Department of Telecom and Posts and allowed to be continued as a special case by the Department of Personnel in consultation with the Ministry of Finance, would, however, continue to be paid at the said rate.

III. PAYMENT OF MONTHLY PENSION TO PENSIONERS OF KASHMIR VALLEY:

Pensioners of Kashmir Valley who are unable to draw their monthly pensions through either Public Sector Banks or PAO treasuries from which they were receiving their pensions, would be given pensions outside the Valley where they have settled, in relaxation of relevant provisions.

NOTE :- 1. The package of concession/facilities shall be admissible in Kashmir Valley comprising of ten districts namely, Anantnag, Baramulla, Budgam, Kupwara, Pulwama, Srinagar, Kulgam, Shopian, Ganderbal and Bandipora.

2. The package of concessions/facilities shall be admissible to Temporary Status Casual laborers working in Kashmir Valley in terms of Para 5(i) of the Causal Laborers (Grant of Temporary Status and Regularization) Scheme of Government of India, 1993.

3. The benefit of additional HRA admissible under the Kashmir Valley package shall be admissible to all Central Government employees posted to Kashmir Valley irrespective of whether they are natives of Kashmir Valley, if they choose to move their families anywhere in India subject to the conditions governing the grant of these allowances.

4. The facilities of Messing Allowance and Per Diem Allowance shall also be allowed to natives of Kashmir Valley in terms of the Kashmir Valley package.

(Mukul Ratra)
Director

Source:www.persmin.nic.in

More funds if needed for one rank, one pension: Chidambaram

Union Finance Minister P. Chidambaram said on Monday that the fund allocation for one rank, one pension in the interim budget presented by him was in keeping with the estimate given by the Defence Ministry. This was not final and the government would provide more if needed, he added.

Asked if he had agreed to the one rank, one pension demand after Rahul Gandhi pushed for it, Mr. Chidambaram said: “The Budget speech was written many days ago; if the Congress vice-president anticipated very cannily what was going to be in budget, then I congratulate him.”

“We need a young fighting force, we need young jawans and we need young officers. We also need to take care of those who served in the defence forces only for a limited numbers of years. The government has, therefore, decided to walk the last mile and closed the gap for all retirees in all ranks,” he said.

Welcoming the government’s intent, members of the armed forces and retired defence personnel felt the fund required would be nearly five times the allocation of Rs. 500 crore.

They said the Expenditure Secretary had informed the Rajya Sabha committee in 2012 that to fully implement the scheme, nearly Rs. 1,800 crore would be required annually and would entail a 10 per cent hike every year.

But, for the moment, the Indian Ex-Servicemen Movement (IESM) welcomed the announcement. Lieutenant-General (Retd) Raj Kadyan of the IESM, who was among those who met Mr. Gandhi, said: “We are very happy at this development. Ex-servicemen are not concerned whether it is politics or impending elections that has motivated the Centre to implement this.”

In the past three years, the government tried to address the issue twice, in 2010 and in January 2013. But each time, parity in pension of defence personnel proved elusive.

Source: http://www.thehindu.com/news/national/more-funds-if-needed-for-one-rank-one-pension-chidambaram/article5700567.ece

Reservation for persons with disabilities-DOPT

No. 36012/24/2009-Estt.(Res) 
Government of India 
Ministry of Personnel, Public Grievances & Pensions 
Department of Personnel & Training 
North Block, New Delhi 
dated the 14th February, 2014 
OFFICE MEMORANDUM 

Subject Reservation for persons with disabilities- Computation of reservation- Implementation of the judgement of Hon'ble Supreme Court in the matter of Union of India & Ann Vs. National Federation of Blind & Ors. 

The undersigned is directed to refer to this Department's O.M. of even number dated the 3rd December, 2014 on the subject cited above conveying the judgement of the Hon'ble Supreme Court dated 8.10.2013 in the matter of Civil Appeal No.9096 of 2013 (arising out of SLP (Civil) No.7541 of 2009) titled Union of India & Anr. Vs. National Federation of Blind & Ors. and follow up action required to be taken thereon.

All the Ministries/Departments/Organizations were, inter alia, requested to compute the number of vacancies available in all the cadres under their control including attached offices, subordinate offices, public sector undertakings, Government Companies, Cantonment Board, etc. in accordance with the directions of the Hon'ble Supreme Court as per Para 5 of the aforementioned O.M. of this Department and further identify the posts for disabled persons within a period of three months from the date of the judgement of the Hon'ble Supreme Court (i.e. 8.10.2013) and implement the same without default. The National Federation of Blind has filed an application and the Hon'ble Court has directed to file a status report giving details of steps taken to implement the judgement of the Hon'ble Supreme Court including the appointments made, if any. The next date of hearing is 12th March, 2014. A copy of the correspondence received in this regard from the Central Government Standing Counsel is enclosed for reference.

This Department is required to file a status report on the action taken by the Ministries/Departments in connection with the next hearing to be held on 12th March, 2014 It is requested that status report on the action taken by the Ministries/Departments/Organizations may kindly be sent to this Department within a week's time i.e. by 21 st February, 2014 so that a consolidated report could be filed before the next date of hearing.

Sd/-
(Debabrata Das) 
Under Secretary to the Government of India 

Source:www.persmin.nic.in

Tuesday, February 18, 2014

Challenges before the Seventh Pay Commission-(7 th CPC)-Financial Express

Why does the government appoint a pay commission every decade?

A pay panel is appointed every decade to review and recommend the pay structure for central government employees taking into account various factors such as cost of living, inflation rate, revenue growth and fiscal deficit of the government, growth in workforce, private sector job scenario and wages, and economic growth. The government has so far appointed six pay commissions. The demand for a permanent pay commission set up through an Act of Parliament has been raised once but it was not accepted by the government.

Earlier this month, Prime Minister Manmohan Singh approved the constitution of the Seventh Pay Commission—to be headed by retired Supreme Court judge Ashok Kumar Mathur—to suggest the extent of hike in salaries of the 7-million-plus central government staff and pensioners with effect from 2016. Petroleum secretary Vivek Rae has been appointed as a full-time member, NIPFP director Rathin Roy will be part-time member and Meena Agarwal will be member-secretary of the new pay panel.

How did the process of pay hikes evolved?

The pay panel recommendations have evolved with time. The first central pay commission (CPC) adopted the concept of “living wage” to determine the pay structure of the government staff. The third CPC adopted the concept of “need-based wage”. The fourth CPC had recommended that the government constitute a permanent machinery to undertake periodical review of pay and allowances of its employees, but this was not accepted by the government. The sixth CPC suggested performance related incentive scheme (PRIS) to replace the ad hoc bonus and productivity-linked bonus schemes. The pay panel also suggested that the running pay band be extended to all grades of officers. Also, the sixth pay panel suggested slashing of the number of grades to 20 and one distinct pay scale for secretaries from the 35 existing earlier.

By how much have the public sector salaries increased every decade following the pay panels’ recommendations?

By and large, the salaries of central government staff have tripled every decade. The sixth CPC suggested 3 times increase in salaries from that of fifth CPC levels—it was 2.6 times for lower grade officials and slightly above 3 for higher grade staff. The increase in salary during fifth CPC was 3-3.5 times the fourth CPC levels.

What has been the fiscal implication of pay hikes?

Government finances have come under strain after implementations of each CPC. After the fourth CPC, the combined fiscal deficit of centre and states rose to 9.5% of GDP in FY87 from 7.7% in FY86. The impact was significantly harsh during the fifth CPC, especially for states—the combined fiscal deficit rose from 6.1% in FY97 to 7% in FY98 and then to 8.7% in FY99 with the aggregate deficit of states surging from 2.6% to over 4%.
In the case of the sixth CPC, the government expenditure increased by about Rs 22,000 crore during 2008-09—Rs 15,700 crore on the general budget and Rs 6,400 crore on the rail budget. The Rs 18,000 crore arrears were distributed in two years—40% in FY09 and 60% in FY10. The fiscal implication of sixth CPC coupled with fiscal stimulus in the form of higher spending and tax cuts after the Lehman crisis, increased Centre’s fiscal deficit to 6% in FY09 and 6.5% in FY10 from less than 3% in FY08.

What are the challenges before seventh CPC?

The new pay panel faces many challenges when it starts the process of reviewing the pay structures of babus. First, the economic growth has slowed sharply in the last 10 years—from over 9% between FY06 and FY08 to 4.5% in FY13. This means slower revenue growth and little room for scaling up expenditure on salaries.
Second, the Fiscal Responsibility and Budget Management (FRBM) target has already been revised more than twice after the Lehman crisis and the new target for lowering the fiscal deficit target to 3% of GDP is FY17. This again binds the government to restrict spending on salaries and wages.

Third and the most important factor, inflation has stayed high in the past few years—the CPI inflation (CPI-Industrial Workers and the new CPI) has averaged over 9% in the past eight years, which means cost of living has gone up significantly and hence necessitates higher compensation for workers. The dearness allowance of government staff has already touched 100%, which along with the rise in other allowances have more than doubled salaries since 2006.

Analysts expect the seventh pay panel to suggest 3-3.5 times hike in salaries across various grades from sixth CPC levels apart from a further rationalisation of government staff. Already, direct or permanent jobs in public sector have been shrinking while engagement of contract labour and outsourcing is on the rise. This trend is likely to continue given the fiscal imperatives of the government.

There is a perception that government salaries should rise faster at the higher grades and slowly at the lower grades to keep pace with private sector. It needs to be seen whether the seventh CPC retains the minimum:maximum ratio at sixth CPC level of 1:12. A hike in the ratio should not impinge the fisc much as the top level officials—joint secretaries and above—comprise less than 5% of the overall public sector workforce. The performance related incentives could also be reviewed to retain talent within the public sector. More than the fiscal implication, what matters is the productivity of the public sector. For instance, sluggish clearances needed for large projects have ruined investment and halved the growth rate in last three years. The silver-lining of the next CPC could be that it may boost the services sector growth and help revive the faltering economy from 2016 as higher salaries boost spending on housing, automobiles and consumer electronics.

Source:Financial Express