Friday, 4 September 2015

7th Pay Commission likely to see pay hikes by 40%

7th Pay Commission likely to see pay hikes by 40%

New Delhi: The Seventh Pay Commission’s report is likely be submitted to the Finance Minister Arun Jaitley shortly.

Sources said that there will be no internal relief. The average increase in basic fair pay for all government employees will be in the region of 40-45%.

This is a very rough average because for senior level officers, like the Cabinet Secretary or officials at the secretary level, the payback could increase by more than 50%.

The Pay Panel may recommend a new pay scale from January 1, 2016. The existing HRA would be retained for A1 cities; while there would be a 15-20% hike for other cities.

But interestingly when we spoke to government employees they were not really happy, essentially perhaps because effectively if you take the DA out, it is not really a hefty bonanza as many thought it would be.
Also, given the price rise and inflation issues, most people are saying it is really not that sufficient. Most of these recommendations will be implemented.

But the point is, if the Finance Minister Arun Jaitley has a problem with any of the observations or with the impact of the Pay Commission recommendations, he might even send this back to the Pay Commission for another round of iteration.

In that case, some amendments will be made that come back to the Finance Ministry and then it may go back to the Cabinet for approval. If that happens, it could delay the process by about 1-2 more months.
A central government employee will earn up to 40% more if the government accepts the Seventh Pay commission’s proposals, which will be submitted shortly.

This pay hike would affect the lives of over 48 lakh central government employees and 55 lakh pensioners and could trigger off similar pay hike across state governments as well.

An official of the Pay Commission, says recommendations will be made to improve productivity.
The Commission will be talked of market driven compensation at the top level, where there are expert persons required by the government. There should be open competition with the public. If they have a better candidate from outside, he should be appointed instead of simply promoting people by seniority, said the official.

TST 

Central Employees DA release not discussed in cabinet meeting

Central Employees DA release not discussed in cabinet meeting

New Delhi: The release of Dearness Allowance (DA) did not figure in the Union Cabinet on Wednesday, despite media saying earlier that it would raise the issue in the meeting.



The cabinet meeting, chaired by Prime Minister Narendra Modi, discussed only the controversial issue of land ordinance, which was allowed to lapse on August 31 at the Prime Minister Narendra Modi official residence, 7, Race Course Road (RCR) here.

“The Union Cabinet today gave its approval to an order issued by government on August 28 to extend the provisions of compensation, rehabilitation and resettlement available to farmers under the 2013 Land Acquisition Act to 13 other central laws as well,” a senior officer in the PMO said.
“The release of the Dearness Allowance (DA) was not discussed at all in the meeting,” the official told The Sen Times.

The government is likely to approve a hike in dearness allowance (DA) to 119 per cent from the existing 113 per cent, benefiting the around 30 lakh central government employees and 50 lakh pensioners including dependents.

“The average rate of retail inflation for industrial workers from July 1, 2014 to June 30, 2015 works out to be 6.77 per cent. Thus the Central government will hike dearness allowance for it employees by 6 per cent,” an official of Finance Ministry said.

He further said the Finance Ministry will put a Cabinet proposal later in this month for approval of 6 per cent dearness allowance hike from July 1 this year as the revised Consumer Price Index number for Industrial Workers for June was released by Labour Ministry on July 31.

With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 119 per cent of pension.

The central government in April hiked dearness allowance by 6 percent to 113 percent of the central government employees and pensioners’ basic pay with effect from January.

The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission, an official statement had said.

The release further said the combined impact on the exchequer on account of both DA and DR would be of the order of Rs 6,762.24 crore per annum, and Rs 7,889.34 crore in the 2015-16 (for a period of 14 months from January 2015 to February 2016).
TST

One Rank One Pension: Government veterans close to a deal?

One Rank One Pension: Government veterans close to a deal?

New Delhi: The agitating ex-servicemen and the government appeared to have ironed out some major differences over the contentious issue of one rank one pension with the defence veterans saying tonight that they may accept revision of pension once in two years instead of one year as demanded by them.

Maj Gen (retd) Satbir Singh
War veteran Maj Gen (retd) Satbir Singh, who has been leading the protest in Jantar Mantar for the last 80 days, said they have got positive signals from the government for the last few days but stopped short of saying there was a breakthrough.

Singh said the issue was non-negotiable and both the elements of the OROPO concept cannot be interfered. An agreement can be reached once we know what is on the platter (offer by the government), he said, adding effective date of revision must be from April 1, 2014.

Independent MP Rajeev Chandrasekhar, who has been mediating on the issue, said it was time veterans must return home with honour and grace by reaching an early settlement.

He urged them to accept the revision of pension every three years.

Meanwhile, not in the best of health yet undeterred, Colonel (retd) Pushpendra Singh today resumed his fast-unto-death demanding prompt implementation of One Rank, One Pension scheme at Jantar Mantar here hours after he was discharged from an army hospital.

Singh, one of the ex-servicemen fasting in demand of the immediate implementation of the OROP scheme, was hospitalised Monday last ? the ninth day of his fast after his medical report showed increased ketone levels.

Singh was admitted to the ICU of Army Hospital Research and Referral, from where he was discharged today.

Hours later, he returned to the protest site to join his fellow ex-servicemen, whose agitation entered the 80th day today.

PTI

MoD Order 3.9.2015: Revision of Pension for Pre-2006 Pensioners w.e.f. 01.01.2006 instead of 24.09.2012 and Arrear of Pension/ Family Pension will be paid

Revision of Pension for Pre-2006 Pensioners w.e.f. 01.01.2006 instead of 24.09.2012 and Arrear of Pension/ Family Pension will be paid – MoD Order 3.9.2015

“Revised tables indicating minimum guaranteed pension / ordinary family pension for Indian Commissioned Officers which is annexed with GOI, MOD letter No.1(11) 2012-D(Pen/ Policy) dated 17.01.2013, shall be effective with effect from 01.01.2006 instead of 24.09.2012. Pension Disbursing Authorities are hereby authorized to step up the pension/ family pension of the affected pre-2006 pensioners/ family pensioners with effect from 01.01.2006 instead of 24.09.2012 and arrear of pension/ family pension will be paid”.

No 1(04)/2015(l)-D(Pen/Pol)
Government of India
Ministry of Defence
D(Pension/Policy)
New Delhi, Dated: 3rd September, 2015
To
The Chief of Army Staff
The Chief of Naval Staff
The Chief of Air Staff

Subject-Revision of pension of pre-2006 Commissioned Officer pensioners/ family pensioners.

The undersigned is directed to refer to this Ministry’s letter No, 17(4)/2008(1)/D(Pen/Pol) dated 11.11.2008 as amended, issued in implementation of government decision on the recommendations of the Sixth CPC for revision of pension/ family pension in respect of Pre-2006 Armed Forces pensioner/family pensioners. As per provisions contained in Para 5 therein, with effect from 01.01.2006 revised pension and revised ordinary family pension of all pre-2006 Armed Forces pensioners/ family pensions determined in terms of fitment formula laid down in Para 4.1 above said letter dated 11.11.2008, shall in no case be lower than fifty percent and thirty percent respectively, of the minimum of the pay band plus the Grade pay corresponding to the pre-revised scale from which the pensioner had retired/ discharged/ invalided out/died including Military Service Pay where applicable.

2. The above minimum guaranteed pension was revised,vide GOI. MOD letter No. 1(11)/ 2012/D(Pen/Pol) dated 17.01.2013 with effect from 24,09,2012, at the rate of minimum of fitment table for the Rank in the revised pay band as indicated under fitment table annexed with SAI 2/S/2008 and SA]. 4/S/2008 as amended, plus Grade pay corresponding to the pre-revised scale from which the pensioner had retired / discharged/ invalided out/died including Military Service Pay.

3. Now, after issue of GOI, Ministry of Personnel. PG & Pensioners, Department of Pension & Pension Welfare OM No. 38/37/08-P & PW (A) dated 30.07.2015, it has been decided that the pension/family pension of all pre.2006 pensioners/family pensioners may be revised in accordance with Para 2 with effect from 01.01.2006 instead of 24.09.2012.

4. In case the consolidated pension/family pension calculated as per Para 4.1 of this Ministry’s letter No. 17(4)/2008(1)/O(Pen/Pol) dated 11.11.2008 is higher than the pension/ family pension calculated in the manner indicated above, the same (higher consolidated pension/family pension) will continue to be treated as basic pension/ family pension.

5. Accordingly, revised tables indicating minimum guaranteed pension / ordinary family pension for Indian Commissioned Officers which is annexed with GOI, MOD letter No.1(11) 2012-D(Pen/ Policy) dated 17.01.2013, shall be effective with effect from 01.01.2006 instead of 24.09.2012. Pension Disbursing Authorities are hereby authorized to step up the pension/ family pension of the affected pre-2006 pensioners/ family pensioners with effect from 01.01.2006 instead of 24.09.2012 and arrear of pension/ family pension will be paid.

6. All other terms and conditions shall remain unchanged.

7. The provisions of this letter shall take effect from 01.01.2006 and arrears, if any, shall be allowed from 01.01.2006 to 23.09.2012.

8. This issues with concurrence of Finance Division of this Ministry vide their ID No. 22(5)/2015/Fin/Pen dated 25.08.2015 and Ministry of. Finance, Department of expenditure vide their ID No. 1(12)/EV/2015 dated 2.9.2015.

9. Hindi version will follow.
sd/-
R. K. Arora
Under Secretary to the Government of India
Authority: www.desw.gov.in

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