Tuesday, 21 July 2015

Preparation of list of Government servants due to retire along with their Aadhaar numbers and incorporation of Aadhaar number in PPO Booklet: CPAO's OM

Preparation of list of Government servants due to retire along with their Aadhaar numbers and incorporation of Aadhaar number in PPO Booklet: CPAO's OM

NEW DELHI-110066
PHONES : 26174596, 26174456, 26174438
CPAO/Tech/Jeevan Pramaan/2015-16/515 to 662.

Office Memorandum
Subject:- Preparation of list of Government servants due to retire along with their Aadhaar numbers and incorporation of Aadhaar number in PPO Booklet.

1. As a part of Digital India initiatives, Digital Life Certification (DLC) of the pensioner has been made an option for submission of life certificate by the pensioner in the month of November each year. As the role of Aadhaar has become vital, a column for Aadhaar has already been provided in the Pension Payment Order booklet. Accordingly, all Heads of Offices have to ensure that wherever available same is provided to their Pay & Accounts Offices alongwith pension papers of the retiring government servants. In this regard, a provision has also been made in CAM-52 (PPO Booklet) by adding the following columns after existing column no.5.

6. Permanent Account Number for Income Tax (PAN)
7. Aadhaar No. (if Available)
8. Mobile No. (if Available)
9. E-Mail ID (if Available)
2. The seeding of Aadhaar with pensioners’ PPO number and their bank accounts is being closely monitored by Prime Minister Office. While this information is being regularly collected by CPAO from banks, the processing of fresh pension cases alongwith Aadhaar number is a very important requirement for expediting seeding of Aadhaar number by banks with PPO number & bank account and smooth implementation of submission of DLCs by pensioners in the month of November.

3. Further, attention is invited to Rule 56 of CCS (Pension) Rules which provides that:-

“(1) Every Head of Department shall have a list prepared every three months, that is, on the 1st January, 1st April, 1st July and 1st October each year, of all Government servants who are due to retire within the next twelve to fifteen months of that date.
(2) A copy of every such list shall be supplied to the Accounts Officer concerned not later than 31st January, 30th April, 31st July or 31st October, as the case may be, of that year.”
4. To avoid any delay in finalizing the pension cases all Heads of Offices should have first-hand information of the Aadhaar number while preparing the list of retiring government officials as per the provision of Rule 56 of CCS (Pension) Rules and should provide the same to the Accounts Officer concerned not later than 31st January, 30th April, 31st July or 31st October of that year.
5. In has been observed that during the month of June, 2015; out of 3101fresh PPOs (Pension Payment Orders), only in 220 cases Aadhaar numbers have been indicated. All Pr. CCAs/CCAs/ AGs are once again requested to ensure that all fresh PPOs are sent to CPAO with Aadhaar numbers wherever available and quarterly list of would be retirees as mentioned in para 3 & 4 above also mention Aadhaar numbers wherever available.

(Subhash Chandra)
Controller of Accounts
Source: http://cpao.nic.in/pdf/cpao_tech_jeevan_praman_2015-16.pdf

7th Pay Commission Rumours – Discarding Grade Pay system – Will it be beneficial ?

7th Pay Commission Rumours – Discarding Grade Pay system – Will it be beneficial ?
A study on difference in Fitment benefit for 7th Pay Commission Pay Fixation in the case of principles of 5th CPC Pay fixation is adopted in lieu of Fitment Benefit in the form of Grade Pay System evolved by 6th CPC

Fitment benefit in the form of Grade Pay provided by 6th CPC was computed based on highest pre-revised pay in each of the pre-revised Pay Scale – Fitment benefit advocated by previous pay commisions were reckoned with Pre-revised basic Pay drawn on the effective date of CPC

While Central Government Employees keep their fingers crossed after 7th Pay Commission finished all the interaction sessions with the Employees Federations and started finalising its report to be submitted to Govt, many surmises and speculations have already started filling the air through Internet and through word of mouth about possible 7th CPC pay fixation methods.

Some of those 7th Pay Commission rumours are as follows
  • There will be no running Pay band and Grade Pay System
  • The Minimum Pay will be Rs. 21000
  • The uniform multiplication factor for arriving revised pay will be 2.86
  • The Criteria for retirement age will be either completion of 33 Years of service or at the age of 60 Years whichever is earlier.
Interestingly, these rumours are spread out this time carry the tags as “inside information provided by Employees federations which participated in the 7th Pay Commission meetings”. The very character of a rumour is, it may be true or false. God only knows.

Among these, the unconfirmed news that 7th Pay Commission is to discard Pay Band – Grade Pay System may be affecting the Pay Structure of Central Government Employees very much if it is true.
In fact this is an off-shoot of proposal moot out by Confederation of Central Government Employees and
Workers in its reply to 7th Pay Commission Questionnaire

In this background, we made an analysis as to whether discarding of Grade Pay System would be beneficial to Central Government Employees.

As per the proposal of Confederation, the Pay Band and Grade Pay system evolved by the 6th CPC brought about innumerable anomalies and the same has to be replaced by the Pay scale structure, which was in vogue prior to the implementation of the 6th CPC.

What was Pay Scale Structure prior to 6th CPC ?  How fixation pay was made in that pay scale ?

Obviously, Pay Scale Structure contemplated by Confederation is 5th Pay Commission Pay Structure which is the Pay Structure prior to 6th CPC pay Structure.
Now, let us have a look at the 5th CPC Pay Structure and how pre-revised 4th CPC Pay was revised and fit into the same.

5th Pay Commission Pay fixation Method :

As per Central Civil Services (Revised Pay) Rules 1997 which was notified by Ministry of Finance for implementation of 5th Pay Commission Report, Revised Pay Scales against 4th CPC pay scales are as follows

4th CPC Pay scales5th CPC pay scales
2375-75-3200-100-3500 / 2375-75-3200-100-3500-125-3750S-137450-225-11500
2200-75-2800-100-4000NEW SCALE8000-275-13500(Group A Entry)
2630/- FIXEDS-169000
3000-125-3625/3000-100-3500-125-4500/ 3000-100-3500-125-5000S-1910000-325-15200
7600/-FIXED /7600-100-8000S-3224050-650-26000
8000/- FIXEDS-3326000(FIXED)
9000/- FIXEDS-3430000(FIXED)

Further, 5th CPC revised pay of Central Government Employees was worked out by adding DA as on 01.01.1996, two installments of Interim Relief (IR-1 and IR-2) and 40% of pre-revised basic pay with Pre-Revised Basic pay drawn as on 01.01.1996. Then resultant revised basic pay was stepped up to nearest incremented pay in the revised 5th CPC pay scale against the existing 4th CPC pay scale in which the pay was drawn. The following illustration would provide clear cut idea about 5th Pay Commission Pay fixation method

Illustration for 5th Pay Commission Pay fixation

Existing 4th CPC pay scaleRs. 1640-60-2600-75-2900
Revised 5th CPC pay scaleRs. 5500-175-9000
Pre-Revised Basic PayRs. 2360
D.A as on 01.01.1996 @ 148%Rs. 3493
IR-1Rs. 100
IR-2Rs. 236
Add 40% of pre-revised B.PRs. 944
TotalRs. 7133
Nearest incremented pay in revised 5th CPC pay scale —-ARs, 7250
If one increment is ensured in the revised pay scale for every three increments in the pre-revised pay scale, the revised basic will be —- BRs. 6250
5th CPC revised Basic Pay as on 01.01.1996 (A or B whichever is higher)Rs. 7250

From the above it could be found that fitment benefit of 40% is calculated using the pre-revised basic pay received by an employee as on 01.01.1997. On the contrary, in the case of fitment benefit allowed by 6th Pay Commission in the form of Grade Pay, it has been calculated at 40% of highest Pay in each of 5th CPC Pre-Revised pay scale.

6th Pay Commission Pay Band and Grade Pay hierarchy

5th CPC Pay Scales6th CPC Pay Band and Grade Pay
NEW SCALE8000-275-13500(Group A Entry)PB-315600-391005400
S-3430000(FIXED)CAB. SEC.90000(FIXED)NIL

We are of the view that if the 7th CPC fitment benefit is calculated on the basis of existing pre-revised pay as in the case of 5th CPC then revised 7th CPC pay would be lesser than the revised 7th CPC Pay calculated by adopting the methods 6th CPC, in which grade pay (fitment benefit) has been arrived at on the basis of highest pay in the pre-revised pay Scale.

At the same time it may not be viable to arrive 7th CPC fitment benefit on the basis of highest Pay in each of Pay Band as 6th CPC Pay Band Structure has been designed in such a way that each of the Pay band accommodates many 5th CPC Pre-Revised Pay Scales

However, even after discarding Grade pay System, if the fitment benefit for 7th Pay Commission Pay revision is provided on the basis of highest pay in the fitment table provided vide O.M 1/1/2008-IC dated 30.08.2008 for the each of the 5th CPC Pre-Revised Pay Scale, then it would be Pay wise beneficial to Central Government Employees.

We invite valuable opinion of readers in the form of comments to this article so that pay fixation method beneficial to CG Employees community can be highlighted

Source: gconnect

7CPC: Maruti Suzuki to get boost from Seventh Pay Commission’s recommendations

7CPC: Maruti Suzuki to get boost from Seventh Pay Commission’s recommendations

MUMBAI: Investors expect Maruti Suzuki to get a boost from the Seventh Pay Commission's recommendations later this year that will lead to salaries of government employees rising. The Pay Commission is expected to submit its report by October and this is likely to be implemented from July 2016, likely adding to an expected double-digit growth in passenger car sales in FY17. Maruti Suzuki is expected to be the main beneficiary, analysts said. The last Pay Commission report had resulted in car sales rising 18 per cent annually between FY09 and FY11.
"The Sixth Pay Commission, which was implemented in August 2008, resulted in almost 10 times increase in Maruti's sales to government employees from FY08 to FY12," Jatin Chawla and Akshay Saxena, research analysts at Credit Suisse, wrote in a July 15 report.

The market value of Tata Motors surged past Maruti Suzuki in 2010, after the Indian company turned JLR around following its acquisition from Ford in 2008. JLR more than made up for Tata Motors' poor domestic performance over the past few years. The Chinese decline has forced many carmakers to scale down targets.
JLR said June sales were flat because strong growth in Europe and North America was offset by a dramatic slowdown in China.
German luxury carmaker Audi has abandoned a target to sell 600,000 cars this year in China, its biggest market, as the country's stock market rout sapped demand for luxury cars, Bloomberg reported on Thursday. Audi's Chinese sales rose 1.9 per cent to 273,853 cars in the first half. Credit Suisse reckons that a salary increase could boost demand for cars in India by 10 per cent. It upgraded the expectation for volume growth at Maruti Suzuki for FY17 to 23 per cent from 17 per cent on account of the expected pay commission boost. It also increased the stock's target price to Rs 5,100 at the end of 2017 fromRs 4,370 previously. Maruti expects there will be a repeat this time around.
"We have sold almost 200,000 vehicles to government employees in FY15," said Randhir Singh Kalsi, executive director, sales, Maruti Suzuki. "We certainly believe we can get more incremental volumes after implementation of the Seventh Pay Commission." Maruti saw a pickup mostly in the Rs 2.5-5 lakh price bracket last time around.
Others also expect a bounce. "An increase in disposable income certainly will help potential buyers to purchase high quality products. So, definitely a salary hike of government employee will propel the industry growth," said Rakesh Srivastava, president, sales, Hyundai India. Growth was seen across segments and geographies after the last pay increase, he said.
There are about 30 lakh central government employees while state government workers number about three times that. About a fourth of them are paidRs 30,000-50,000 per month and nearly 10 per cent may buy cars, Credit Suisse estimates, adding up to an additional volume of about 300,000 units.
Among those who get a pay increase, those who have set aside enough for children's education and own a home will be the ones most likely to buy a new car, said Maruti's Kalsi, pointing out that brands will need to target the entire family, not just breadwinners.
"Importantly, car buying is no longer a prerogative of the parents and their teenage children now play an important role in choosing a car," he said.
Changing consumer preferences also indicate that it won't be just entry-level cars that are likely to rise; some may look to upgrade.
"We are (expecting) incremental demand from employees for compact as well as sedan cars," said Srivastava of Hyundai. Apart from the additional pay, arrears will also play a role. The Sixth Pay Commission award saw employees getting arrears for 32 months in two installments in FY09 and FY10. This means that any delays in payment enhance the ability of an employee to buy a car. Carmakers offer special discounts for government employees and it's easier for them to get loans from public sector banks as well.

Via Economic Times

7CPC: Seventh Central Pay Commission to submit report by October 31

7CPC: Seventh Central Pay Commission to submit report by October 31

New Delhi: The eyes of the central government employees will be firmly glued on the forthcoming seventh central pay commission reports which is likely to be be submitted by October 31 for implementation from April 2016.

The pay panel is likely to finalise and submit its report on salary and allowance hike by October 31, sources said. The members and officials of the panel had made several field tours and collected valuable suggestions, which are all going to be trashed as the Commission winds up its office within three month.

After getting recommendations, the central government may announce to accept it in the budget 2015-16 to implement it from April 2016.

It is expected that seventh pay panel to suggest hiking the tripled salaries of central government employees.
The salaries of central government employees were roughly tripled with retrospective effect from 1996 and tripled once again with retrospective effect from 2006 by the fifth pay panel and sixth pay panel respectively. This shows the salaries of central government employees have tripled every decade.

According to media report says that investors are expecting car bazar to get a boost from the seventh central pay commission’s recommendations from mid-next year on account of getting arrears of rising salaries of central government employees.

The last Pay Commission report had resulted in car sales rising 18 per cent annually between financial year 2009-10 and financial year 2010-11.

The last pay commission was implemented in August 2008 with retrospective effect from January 2006 which resulted in getting huge salary arrears to central government employees to enable them to purchase car from their arrears on loan basis.

They paid margin amount from arrears and installments from salaries but this pay panel will be implemented from January 2016, hence no such huge arrears will be paid to central government employees this time to pay margin amount for car loan. So car bazar will not get a boost from the seventh central pay commission’s recommendations.


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