Tuesday, 1 December 2015

7th Pay Commission Recommendations on Non-Practising Allowance (NPA)

7th Pay Commission Recommendations on Non-Practising Allowance (NPA) – 7th CPC proposes for reduced NPA at the rate of 20% of Basic Pay as against NPA of 25% paid presently

Rate of NPA:

Non Practicing Allowance (NPA), at the rate of 25 percent of Basic Pay, is paid to medical doctors occupying posts for which minimum qualification of a medical degree is prescribed. There are demands to raise this allowance to 40 percent of Basic Pay.

Analysis and Recommendations

The VI CPC had included a detailed rationale for the grant of NPA in its recommendations. Most of the reasons are still valid and there is no need to reiterate them here. However, in line with our general approach of rationalizing the percentage based allowances by a factor of 0.8, we recommend that NPA should be paid at the rate of 20 percent of Basic Pay, subject to the condition that Basic Pay + NPA should not exceed the average of Apex Level and the level of Cabinet Secretary.

7th CPC’s remarks on taking NPA for the purpose of calculating HRA

Currently, in the case of those drawing either NPA or MSP or both, HRA is being paid as a percentage of Basic Pay+NPA or Basic Pay+MSP or Basic Pay+NPA+MSP respectively. HRA is a compensation for expenses in connection with the rent of the residential accommodation to be hired/leased by the employee and is graded based on the level of the employee, and therefore should be calculated as a percentage of Basic Pay only. Add-ons like NPA, MSP, etc. should not be included while working out HRA.

Whether NPA can be taken in to account while calculating Transfer Grant

Presently NPA and MSP are included as a part of Basic Pay while determining entitlement for grant of CTG. The Commission finds no justification for doing so, as the expenditure and inconvenience involved in relocation on transfer/retirement is similar for all employees. Hence, no other add-ons should be allowed in Basic Pay while calculating CTG.

Source: gconnect.in

7th Pay Commission Recommendations on PRIS

7th Pay Commission Recommendations on PRIS – Performance Related Incentive Scheme to continue as such.  No PRIS for Non-Scientific Staff. DRDO can continue with their existing system.

7th CPC report has been submitted to Finance Ministry for implementation.  The recommendations made by the 7th CPC about PRIS is given below.

Performance Related Incentive Scheme (PRIS)

PRIS is operational in Departments of Atomic Energy and Space. PRIS is a variable component of pay and is awarded on the basis of the performance of individual/ group/organization, measured against goals set for a given period of assessment. PRIS is non- additive and non-cumulative. The form of PRIS envisaged is organization and design specific and is payable as a cash incentive either when it becomes due or on a monthly/quarterly/annual basis. It is based on the principle of differential reward for differential performance. The scheme is transparent and centrally implementable. The Scheme has three components- Organizational, Group and Individual.

Organizational PRIS

Organizational PRIS or PRIS (O) is awarded to all personnel in the department and its constituent units based on accomplishment of various objectives at the organizational level, in the form of Special Allowance at the rate of 20 percent of pay, payable on a six monthly basis and subject to fulfilling the following eligibility criteria:
  • Attendance of not less than 175 working days during the preceding financial year.
  • Incentive shall not be admissible for the period of EL/HPL/Commuted Leave etc. availed singly or in combination, in excess of 30 days during the financial year for which the organizational incentive is otherwise payable.
  • APAR grading should be Good/B+ or above.
  • Should not be under suspension or deputation.

Group PRIS

Group PRIS or PRIS (G) is awarded to all employees belonging to specific groups identified in all Units of the Department–scientific, technical, administrative and auxiliary, exhibiting excellence which have significantly contributed towards the realization of the organizational objective in a particular year, in the form of Special Allowance at the rate of 10 percent of the basic pay of the individual during the financial year, based on annual assessment and which is further subject to fulfilling the following eligibility criteria:
  • Overall grading in APAR of the preceding reporting year should be Very Good or above.
  • For SC/ST personnel, the same should be Good or above.
  • Other criteria remain the same as PRIS (O).

Individual PRIS

Individual PRIS or PRIS (I) are variable additional increments granted to all eligible Scientific and Technical personnel at the time of promotion in recognition of individual meritorious performance subject to fulfilling the following eligibility criteria:
  • Variable increments awarded to Scientific and Technical personnel are specific to the Grade.
  • An employee will enter into PRIS (I) only after the first merit promotion.
  • A promoted candidate should not get less PRIS (I) increments than what the candidate was drawing before the effective promotion date.
  • Eligibility condition of 175 working days is not applicable for grant of PRIS (I).
  • The DPC/Standing Selection Committee, after considering the total length of time taken by an employee to earn promotion, will recommend the total number of variable incentives payable under PRIS (I)
  • Up to six increments can be recommended to the officers in the grade of Scientist H and above (except Officers at Apex Scale), four increments to the officers in the grade of Scientist C to Scientist G and maximum three increments to Technical Staff.
  • Variable increment will be multiple of one increment, but subject to the ceiling of Rs.10,000 per month.
  • The amount of incentive increment payable as PRIS (I) has no relation with the normal rate of increments under pay fixation/annual increment.
The Commission has been informed that of the three components, only PRIS (O) and (I) are under implementation and that PRIS (G) is yet to be awarded.

Demands

Associations of scientific staff in Departments of Atomic Energy and Space have submitted that PRIS, as presently implemented, has gone a long way in arresting attrition and accordingly need to be continued. They have however sought an increase in the incentive percentage of PRIS (O) and PRIS (G) as lately the attrition rate has somewhat increased. They have also demanded extension of PRIS (I) to the apex level posts of the organizations presently covered under the scheme, the stated justification being that Heads of Organization have a critical role to play in the formulation and implementation of scientific policy of the government. The associations have also requested extension of PRIS (I) to the entire department instead of limiting it to the scientific cadres. Demands have also been made for exempting Medical Leave for fulfilling the conditionality of attendance for being considered eligible for grant of PRIS (O) and PRIS (G). A demand has also been placed to extend PRIS to DRDO.

In response to a query, current data on attrition rate was supplied by Departments of Atomic Energy and Space, as well as DRDO. The attrition rate, defined as the number of scientists resigning/taking VRS during a year as a percentage of total scientists on the payroll at the end of that year, is shown in the table below:

Attrition Rate of Scientists
(percentage)
 
Years
  Space   Atomic Energy   DRDO
  2010-11  
1.34
 
0.57
  0.87
  2011-12  
1.50
 
0.70
  1.16
  2012-13  
1.23
 
0.51
  0.93
  2013-14  
1.25
 
0.70
  0.82
  2014-15  
0.86
 
0.48
  0.53

From the table above it is seen that attrition rate has been on decline in all the three scientific departments which would be partly due to PRIS and partly due to salary increase after VI CPC.

Analysis and Recommendations

It is noted that contrary to the assertion by Departments of Atomic Energy and Space, the attrition rate has continued to fall. Therefore, while the Commission sees merit in continuing with PRIS for arresting attrition in these organizations, it is not in favour of increasing the incentive percentage. The PRIS (O) and PRIS (G) taken together already amount to 30 percent of the basic pay, which is substantial. This would be more so when the rise in pay levels post implementation of VII CPC recommendations is taken into account. The demand to bring apex level functionaries under PRIS (I) is not supported as Heads of Organizations have sufficient incentive to perform being in the position they are in and like others are already the beneficiaries of PRIS (O). The Commission is also not in favour of extending PRIS (I) to non-scientific staff. The demand for exempting medical leave from the eligibility conditions of PRIS is a matter that may be dealt with administratively. The Commission also does not recommend extension of PRIS to DRDO as they have a separate system of variable increments in place which is similar to PRIS (I).


Source: gconnect.in

Expected DA Jan 2016 : AICPIN for the month of October 2015

Expected DA Jan 2016 : AICPIN for the month of October 2015

No. 5/1/2015- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU
`CLEREMONV, SHIMLA-171004
DATED : 30th October, 2015
Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – September, 2015

The All-India CPI-IW for September, 2015 increased by 2 points and pegged at 266 (two hundred and sixty six). On 1-month percentage change, it increased by (+) 0.76 per cent between August and September, 2015 which was static between the same two months a year ago.

The maximum upward pressure to the change in current index came from Food group contributing (+) 1.78 percentage points to the total change. At item level, Arhar Dal, Masur Dal, Moong Dal, Urd Dal, Mustard Oil, Onion, Cauliflower, Green Coriander Leaves, Potato, Tea (Readymade), Sugar, Electricity Charges, Private Tuition Fee, Flower/Flower Garlands, etc. are responsible for the increase in index. However, this increase was restricted by Wheat, Fish Fresh, Poultry (Chicken), Eggs (Hen), Apple, Coconut, Tomato, Petrol, Washing Soap, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 5.14 per cent for September, 2015 as compared to 4.35 per cent for the previous month and 6.30 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 5.71 per cent against 3.55 per cent of the previous month and 6.46 per cent during the corresponding month of the previous year.

At centre level, Chhindwara reported the highest increase of 10 points followed by Varanasi (9 points), Pune, Tripura, Jalpaiguri and Bhilwara (6 points each). Among others, 5 points rise was observed in 5 centres, 4 points in 7 centres, 3 points in 8 centres, 2 points in 16 centres and 1.point in 19 centres. On the contrary, Goa recorded a maximum decrease of 4 points followed by Ernakulam 3 points. Among others, 2 points decrease was observed in 4 centres and 1 point in 2 centres. Rest of the 9 centres’ indices remained stationary.

The indices of 36 centres are above All India Index and other 42 centres’ indices are below national average.

The next issue of CPI-IW for the month of October, 2015 will be released on Monday, 30th November, 2015. The same will also be available on the office website www. labourbureau.gov. in.

(S. S. NEGI)
DEPUTY DIRECTOR GENERAL

Source : labour Bureau

7th Pay Commission’s Recommendations on Gratuity

7th Pay Commission’s Recommendations on Gratuity

7th CPC recommends for raising Gratuity from the existing Rs.10 lakh to Rs.20 lakh from 01.01.2016. 7th Pay Commission further proposes for DA indexed Gratuity viz., increase by 25 percent whenever DA rises by 50 percent.

Enhancement in the Gratuity Ceiling and its Indexation

A number of representations have been received by the Commission stating that there is a need to revise the existing ceiling of Rs.10.00 lakh with regard to payment of service gratuity.

Analysis and Recommendations

Rule 49 and 50 of the CCS (Pension) Rules provides that a government servant is entitled to get retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service subject to a maximum of 16.5 times of the last emoluments subject to a maximum of Rs.10 lakh.
The Commission sought the views of the government in this regard. The Department of Pension and Pensioners Welfare stated that the VI CPC has increased the amount of gratuity from Rs.3.5 lakh to Rs.10 lakh w.e.f. 01.01.2006. This amount, in the view of the department, is not commensurate with emoluments that are available to senior officers at the time of retirement. The department has suggested to the Commission that a view could be taken to index gratuity with amount of DA admissible at the time of retirement.

The Commission notes that there is merit in the argument advanced to index the ceiling on gratuity so that the benefits of the enhanced ceiling are available to personnel in a manner which is more even over a time frame. The Commission recommends enhancement in the ceiling of gratuity from the existing Rs.10 lakh to Rs.20 lakh from 01.01.2016. The Commission further recommends, as has been done in the case of allowances that are partially indexed to Dearness Allowance, the ceiling on gratuity may increase by 25 percent whenever DA rises by 50 percent.

Rationalisation of Death Gratuity

The Commission has received representations pointing to a need for rationalization of current slabs for death gratuity, especially for the slab of 5 to 20 years of qualifying service in which family pensioners are stated to be placed at a disadvantageous position.

Analysis and Recommendations

As per Rule 50 of Pension Rules, the death gratuity admissible will be as follows, subject to the maximum limit prescribed for the gratuity:

Length of Service Rate of Death Gratuity
Less than one year 2 times of monthly emoluments
One year or more but less than 5 years 6 times of monthly emoluments
5 years or more but less than 20 years 12 times of monthly emoluments
20 years or more Half month of emoluments for every complete six monthly period of qualifying service subject to a maximum of 33 times of monthly emoluments

The Commission sought the views of the government in this regard. Department of Pension and Pensioners Welfare stated that it had received similar demands from pensioners’ association and it feels a need for a review of the existing slabs for death gratuity.

The Commission, after examination of the matter, recommends the following revised rates for payment of death gratuity:

Length of Service Rate of Death Gratuity
Less than one year 2 times of monthly emoluments
One year or more but less than 5 years 6 times of monthly emoluments
5 years or more but less than 11 years 12 times of monthly emoluments
11 years or more but less than 20 years 20 times of monthly emoluments
20 years or more Half month of emoluments for every complete six monthly period of qualifying service subject to a maximum of 33 times of emoluments

Reduction in the time period for Restoration of Basic Pension
The Commission has received a number of representations requesting reduction of restoration period of commuted portion of pension from the existing 15 years.

Source: gconnect.in

7th Pay Commission – Recommends Abolition of 52 Allowances

7th Pay Commission – Recommends Abolition of 52 Allowances – The list of outdated government perks is pretty long. Sample this: select postal department employees are entitled to a Rs 90-per month cycle allowance.

The 7th Pay Commission, headed by Justice Ashok Kumar Mathur submitted its report to the finance ministry about 10 days back. It has made many recommendations to the Government pertaining to salary, pension etc., etc. It has also recommended abolition of 52 allowances that the 7th Pay Commission found obsolete.

The list of outdated government perks is pretty long. Sample this: select postal department employees are entitled to a Rs 90-per month cycle allowance, if the employee fulfills a number of conditions including the submission of proof that there has been an “extensive use” of the bicycle. Indian Foreign Service officers are given a monetary incentive that’s ridiculously low for learning an optional foreign language — Rs 100 per month if the officer turns “proficient” in that language and Rs 200 per month if the officer becomes “above proficient”.

Sounds odd, but Central Industrial Security Force (CISF) personnel receive a haircutting allowance at the rate of Rs 5 per month, the lowest among 196 government allowances that prevail today. This allowance should have been discarded long ago, as haircutting is very much a part of the CISF cadres’ composite personal maintenance allowance. But no one probably had spotted this till the 7th Central Pay Commission found it “outdated” and recommended its abolition.

So, when the 7th Central Pay Commission chairman Justice AK Mathur along with two members of the Commission had to evaluate the demands of IAS, IFS, IPS, Central government services and defence personnel in several rounds of meetings spanning nearly two years, they encountered a humongous task of rationalising as many as 196 allowances in addition to weighing in on the core issues of pay hike and pay parity. The list of allowances includes the well-known ones like DA and HRA.

And the Central Pay Commission, which submitted its report 10 days ago to the finance ministry, clearly recommended abolition of 52 allowances that they found obsolete. We give below a selected list of a few allowances which have been recommended for abolition:

1. Hair cutting Allowance
2. Cash Handling Allowance
3. Hutting Allowance
4. Secret Allowance
5. Cycle Allowance
6. Diet Allowance
7. Soap Toilet Allowance
8. Funeral Allowance

Source: The Economic Times

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