Tuesday, 8 September 2015

All you wanted to know about 7th Pay Commission?

All you wanted to know about 7th Pay Commission?

Government offices are currently buzzing with excitement as employees await the recommendations of the Seventh Pay Commission. While the babus may have reason to smile as they may soon have more money in the pocket, it might not be equally good news for others.

What is it?

A Pay Commission is appointed by the government once every 10 years to look at the pay structure of Union and State government employees and pensioners. Typically, the commission takes 18 months to submit its report. The Seventh Pay Commission was constituted in February 2014 under the chairmanship of Justice Ashok Kumar Mathur to submit its recommendations by August 2015.
Pay commissions study the current pay scales and make recommendations on not just pay increases, but also pay structure. For example, the Sixth Pay Commission recommended that transport allowance, which was a lump-sum amount earlier, be paid along with a Dearness Allowance component. Likewise, the House Rent Allowance calculation was pegged to a percentage of pay. From the Seventh Pay Commission, there are expectations of tweaks to retirement age, performance-linked pay and flexible work hours for women and employees with disabilities, apart from pay hikes. The recommendations are expected to be effective from January 1, 2016. If there are delays, the pay revisions would be done with retrospective effect.

Why is it important?
For three reasons. One, it has an impact on government spending and fiscal deficit. For example, after the Sixth Pay Commission was implemented, the fiscal deficit that year doubled to 6 per cent in 2008-09, partly due to the resulting increases.

Currently, Central government pay and allowances account for 1 per cent of the country’s GDP. This could increase if the pay hikes are significant. Based on the medium-term expenditure framework presented to Parliament, a 16 per cent pay increase is likely from the Seventh Pay Commission. This could add 0.2-0.3 per cent of GDP by way of additional expenditure in 2016-17, estimates DBS.

Two, if the government sticks to its fiscal deficit targets, the higher outgo may entail cuts in other items of spending, including capital expenditure.

Three, pay increases granted by the commission can act as a stimulus to the economy by boosting the consumption leg of GDP. At last count, India employed 48 lakh Central government employees and 55 lakh pensioners and over one crore State and local government employees. The Fourteenth Finance Commission estimates that after the Sixth Pay Commission, pay and allowances to Central government employees more than doubled in a four-year period between 2007-08 and 2011-12.

Why should I care?
If you are a government employee, retiree or a job aspirant, you probably would be watching out eagerly for the report. As an investor, you can consider consumption as a theme to bet on — there is a co-relation between pay commission increases and discretionary spending in urban India. Higher disposable income in the hands of the people could aid automobile and property sales.

The country’s fiscal deficit is a cause for concern as it impacts tax policies.

The bottomline
Pay attention to the recommendations of this commission. It matters to the economy, to the deficit and to your portfolio.

Source: www.thehindubusinessline.com

Minimum speed of BSNL Landline Broadband will be 2Mbps from 1.9.2015

Minimum speed of BSNL Landline Broadband will be 2Mbps from 1.9.2015

BSNL Upgrades the speed of all Landline Broadband customers from 512 kbps to minimum 2 Mbps

Committed to the Government’s Digital initiatives announced by Hon.ble PM, BSNL has decided to upgrade Broadband speed to minimum 2 Mbps at no additional cost for all the Broadband customers on PAN-India Basis from 1st October 2015. This is another major service offering from BSNL for the benefits of customers in continuation to offering free night calling from BSNL landline to all operator network from 9:00 PM to 7:00 AM and free incoming roaming services for its mobile customers. BSNL is also offering 1Gb free E-Mail box to their customers from 50 Mb mail box.

Shri Ravi Shankar Prasad Hon’ble MOC &IT, GOI announced this today here at Gurgaon in a function organized by BSNL. The function was graced by Shri Rao Inderjeet Singh Hon’ble MOS for Planning & MOS for Defence (Independent charge) GOI. Shri Anupam Srivastav CMD BSNL, Shri N K Gupta Director (CFA), Smt Sujata Ray Director (HR) BSNL Board and Shri R C Arya CGM Haryana circle were also present on the occasion.

The speed up-gradation will benefit all the existing and new Broadband customers of BSNL. Under this scheme, BSNL is upgrading the speed of existing Broadband plans of 512 Kbps & 1 Mbps to 2 Mbps speed. With this upgradation, BSNL customers can access / surf the internet including social network websites like Facebook, Google, Twitter, etc. at high speed.

BSNL is the first service provider to provide the Broadband Access to the country. BSNL launched the Broadband services over its landline in India in 2005 with speed of 256kbps and above over the state of art Multi Protocol Label Switching (MPLS) based IP infrastructure in urban as well as Rural areas.

BSNL since then is constantly working for increasing the broadband speed for the enhanced experience of customer in urban as well as rural areas as envisaged in New Telecom Policy 2012.. Now, BSNL offers Broadband services with various plans ranging from 2 mbps to 100 mbps speed using ADSL/VDSL and fiber based GPON technology in a very affordable price range. BSNL is currently having around 10 Mn Broadband customers including about 1.1 Mn. Rural customers.

This up-gradation shall enhance customer experience while surfing on internet and enjoying live video streaming by all customers even in the low price range. This scheme is expected to attract new customers for subscribing BSNL Broadband customers in an affordable manner.

BSNL is one of the largest Telecom Service providers in India. BSNL has installed Quality Telecom Network in the country & focusing on improving it, expanding the network, introducing new telecom services with ICT applications. BSNL is having more than 77 Million Mobile customers, more than 16 million wired line telephone connections and around 10 million wired Broadband connections.

For further information, customers can access the BSNL Customer Care Service through Toll free number 1500 (from BSNL number) & 1800 345 1500 (from other operator number) or visit the BSNL website www.bsnl.co.in.

Source: PIB News

Wait for final OROP order for clarity: Parrikar

Wait for final OROP order for clarity: Parrikar

Mumbai: With confusion surrounding who among the retirees will get the benefits of One Rank One Pension, Defence Minister Manohar Parrikar today asked all those concerned to wait for the final order, which will “explain it properly”.

“You have to wait for the final order (on OROP) which will come. Why is there so much excitement till then the PM has made it amply clear that those who are being allowed to retire through proper procedure will not be (adversely) impacted. You need to wait for the exact wording,” he told reporters on the sidelines of an Engineers’ Conclave.

He also clarified that the concept of ‘Voluntary Retirement Scheme (VRS) does not exist in the Armed Forces.

“In the Armed Forces even if you apply, you may not get voluntary retirement, unlike (in) civilian (service), where you can get it. In the Armed Forces, you can be refused. There are many people who because of health reasons apply and the Armed Forces also want them to retire and, if that happens before the minimum service requirement, then they don?t get pension.

“We will explain this properly, no one should unnecessarily create confusion on it,” Parrikar said.
Parrikar said many things needed to be considered before Rs 8000 crore is sanctioned for implementing OROP.

“A lot of things have to be considered before sanctioning Rs 8,000 crore…it is not a matter of Rs 8. There were a lot of issues involved with it, why blame someone? It is very easy to say that give it (money), but when one has to give the money, it is not easy,” he said.

He was asked whether differences between bureaucracy and the political leadership had delayed the announcement.

Prime Minister Narendra Modi had yesterday said those who had had to quit the defence forces prematurely would also be entitled to OROP benefits.


No salary deduction on bandh day for Bengal Government Employees on paid leaves

No salary deduction on bandh day for Bengal Government Employees on paid leaves

Kolkat: West Bengal government employees who were on child care leave, maternity leave, earned leave etc. On September 2, the day when the central trade unions called a bandh, will not have to forgo their day’s salary.

A memorandum issued by the state finance department has said no salary would be deducted from such employees who had taken prior paid leaves.

“Now, to remove the confusion, it is clarified that absence will not be treated as ‘dies non’ and no salary will be deducted or treated to be inadmissible in case of leaves like child care leave, maternity leave, earned leave, etc sanctioned before the date of issuance of finance department’s order,” the memo said.

The government had made it mandatory for all its employees to be present on the strike day. An earlier directive had said absence of employees on that date would be treated as ‘dies non’ and no salary would be admissible.

7th CPC recommendation expected: Minimum Basic 15000, Average increase 15%-20% and Maximum 33 Years Service

7th CPC recommendation expected: Minimum Basic Pay 15000, Average increase 15%-20% in salary and Maximum 33 Years service

The basic salary is expected to be increased to 15 thousand
The central government’s personnel is not likely to get a big gift from the Seventh Pay Commission. According to sources, the average increase in wages is likely to be between 15-20 percent. While the good news is that the minimum basic salary is expected to be increased to 15 thousand. Central Pay Commission personnel can determine the maximum term of 33 years. It could be a losing proposition for personnel.
According to highly placed sources Pay Commission completed the process of consultations with the stakeholders and is now trying to finalize its recommendations. Within the next two months, the Commission will submit its report to the government. India trusted the three issues have been reported on the Pay Commission has almost finished its opinion.
Between 15-20 percent the average salary increase
Pay Commission’s first attempt is that the average wage increase should be limited to between 15-20 percent. If you look at the SPC, the average salary increase was 60-70 per cent. But the seventh pay commission believes that the Sixth Pay Commission recommendations received after the spectacular rise of the increase is unlikely to be.
Maximum period of service 33 years
Secondly, it is going to pay the Commission a significant recommendation that the maximum period of service of public employees 33 years may be prescribed. Means a personnel official in 20 years to find a job, he will be retired in 53 years. For others, retirement age remains 60 years. Although most memorandum to the Pay Commission has been seeking to increase the retirement age. Personnel want the retirement age to 62 years.
The minimum basic wage of 15 thousand rupees
According to the third issue is likely to be the minimum basic pay of 15 thousand rupees. From 3050 to 7730 it was raised last Pay Commission. Now it is likely to be Rs 15 thousand.
Journey of  Basic Salary
1946- First Pay Commission had fixed basic pay 35 Rupees.
1959- Second Pay Commission is Rs.80
1973 – Third Pay Commission – Rs.260
1986 – Fourth Pay Commission – Rs.950
1996 – Fifth Pay Commission – Rs.3050

Source: geod.in

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