Thursday, 30 June 2016

Expected DA From July, 2016: AICPIN for the Month of May, 2016

Expected DA from July, 2016: AICPIN for the Month of May, 2016 released


No. 5/1/2016- CPI 
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

`CLEREMONT', SHIMLA-171004

DATED: 30th June, 2016
Press Release

Consumer Price Index for Industrial Workers (CPI-IW) — May, 2016

The All-India CPI-IW for May, 2016 increased by 4 points and pegged at 275 (two hundred and seventy five). On 1-month percentage change, it increased by (+) 1.48 per cent between April, 2016 and May, 2016 when compared with the increase of (+) 0.78 per cent between the same two months a year ago.


The maximum upward pressure to the change in current index came from Food group contributing (+) 3.69 percentage points to the total change. At item level, Rice, Wheat, Arhar Dal, Gram Dal, Masur Dal, Urd Dal, Groundnut Oil, Eggs (I len), Fish Fresh, Milk, Chillies Green, Brinjal, Cabbage, French Bean, Potato, Tomato, Sugar, Petrol, etc. are responsible for the increase in index.


The year-on-year inflation measured by monthly CPI-IW stood at 6.59 per cent for May, 2016 as compared to 5.86 per cent for the previous month and 5.74 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 8.48 per cent against 7.55 per cent of the previous month and 5.99 per cent during the corresponding month of the previous year.


At centre level, Salem reported the maximum increase of 12 points followed by Puducherry and Mysore (11 points each), Bengluru (10 points), Quilon, Warrangal and Coonoor (9 points each). Among others, 8 points increase was observed in 3 centres, 7 points in 5 centres, 6 points in 5 centres, 5 points in 9 centres, 4 points in 6 centres, 3 points in 9 centres, 2 points in 6 centres and I point in 17 centres. On the contrary, Amritsar recorded a decrease of 1 point. Rest of the 10 centres' indices remained stationary.


The indices of 31 centres are above All-India Index and other 42 centres' indices are below national average. The indices of Pune, Salem, Vishakhapatnam, Bokaro and Varanasi centres remained at par with All-India Index.


The next issue of CPI-IW for the month of June, 2016 will be released on Friday, 29th July, 2016. The same will also be available on the office website www.labourbureaunew.gov.in.


Sd/-
(SHYAM SINGH NEGI)
DEPUTY DIRECTOR GENERAL
Source:- AICPIN May, 2016

7th CPC Cabinet Decision – Frequently Asked Question

7th CPC Cabinet Decision – Frequently Asked Question

7thCPC-FAQ


1.  What is the Fitment Factor used in Pay Matrix?
A fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.

2. Did Cabinet approve for the employees request of changing minimum wages?
No, the 7th CPC recommendation will be implemented (Rs.18000/-)

3. What would be the current House Building Advance?
The ceiling of House Building Advance from Rs.7.50 lakh to 25 lakh,

4. When will I get my arrears?
All arrears including pensioner will be paid during this financial year (2016-17) itself.

5. What would be Rate of increment?
Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

6. What’s the status of NPS Implementation?
Cabinet decided to form two separate committee for looking into the issues.

7. What would be my current Central Government Employees Group Insurance Scheme (CGEGIS)?
It will stay at the existing rate of Rs.30, Rs.60 & Rs.120/- for Group C, B & A respectively.

8. Has the old allowance has been abolished?
Currently No (June’2016). Existing will continue and after 4 month’s there may be changes.

9. What would be the HRA Percentage after Cabinet Decision?
HRA would be at the rate of 30, 20 & 10 percentage and after 4 month’s there may be changes.

10. Has there been any changes in Defence Pay Matrix?
Yes, there has been changes in 13A (Brigadier), Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier).

11. Will there be any changes in Military Service Pay?
Yes, Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.

12. For pension, what would be multiplication factor?
2.57 would be the factor to determine the pension and will be reviewed after 4 months.

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7th Pay Commission calculator to highlights, here’s all you want to know

7th Pay Commission calculator to highlights, here’s all you want to know

The 7th Pay Commission report recommendations have been cleared today by the Cabinet. Earlier in its report, in November last year, the commission itself had recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years.

Here are the 7th Pay Commission report highlights:

1. Recommended Date of implementation: 01.01.2016

2. Minimum Pay – Calculator: Based on the Aykroyd formula, the minimum pay in government is recommended to be set at Rs 18,000 per month.

3. Maximum Pay: Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

4. Financial Implications:
a) The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, over the expenditure as per the ‘Business As Usual’ scenario. Of this, the increase in pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore and increase in pension would be Rs 33,700 crore.

b) Out of the total financial impact of Rs 1,02,100 crore, Rs 73,650 crore will be borne by the General Budget and Rs 28,450 crore by the Railway Budget.

c) In percentage terms the overall increase in pay & allowances and pensions over the „Business As Usual‟ scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent.

d) The total impact of the Commission‟s recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay+Allowances+ Pension) to GDP compared to 0.77 percent in case of VI CPC.
5. New Pay Structure: Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.

6. Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.

7. Annual Increment: The rate of annual increment is being retained at 3 percent.

8. Modified Assured Career Progression (MACP):
a. Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”.
b. The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service.
c. No other changes in MACP recommended.
9. Military Service Pay (MSP): The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows:

7th Pay Commission Report

Present
Proposed
i.Service OfficersRs 6,000Rs 15,500
ii.Nursing OfficersRs 4,200Rs 10,800
iii.JCO/ORsRs 2,000Rs 5,200
iv.Non Combatants (Enrolled) in the Air ForceRs 1,000Rs 3,600

10. Short Service Commissioned Officers: Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. They will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute.

11. Lateral Entry/Settlement: The Commission is recommending a revised formulation for lateral entry/resettlement of defence forces personnel which keeps in view the specific requirements of organization to which such personnel will be absorbed. For lateral entry into CAPFs an attractive severance package has been recommended.

12. Headquarters/Field Parity: Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.

13. Cadre Review: Systemic change in the process of Cadre Review for Group A officers recommended.
14. Allowances: The 7th Pay Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.
a. Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance.
The current Siachen Allowance per month and the revised rates recommended are as follows:

7th Pay Commission Table

Present
Proposed
i.Service OfficersRs 21,000Rs 31,500
iii.JCO/ORsRs 14,000Rs 21,000
This would be the ceiling for risk/hardship allowances and there would be no individual RHA with an amount higher than this allowance.
b. House Rent Allowance: Since the Basic Pay has been revised upwards, the Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.
c. In the case of PBORs of Defence, CAPFs and Indian Coast Guard compensation for housing is presently limited to the authorised married establishment hence many users are being deprived. The HRA coverage has now been expanded to cover all.
d. Any allowance not mentioned in the report shall cease to exist.
e. Emphasis has been placed on simplifying the process of claiming allowances.
15. Advances:
a. All non-interest bearing Advances have been abolished.
b. Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs 25 lakhs from the present Rs 7.5 lakhs.
16. Central Government Employees Group Insurance Scheme (CGEGIS):  The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:

7th Pay Commission Table

Present
Proposed
i.Service OfficersRs 21,000Rs 31,500
iii.JCO/ORsRs 14,000Rs 21,000

17. Medical Facilities:
a. Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended.

b. Meanwhile, for the benefit of pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis.

c. All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.
18. Pension: The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.

The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix.

This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent.

In the case of defence forces personnel this amount will include Military Service Pay as admissible.
Fifty percent of the total amount so arrived at shall be the new pension.

An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension.

The pensioner will get the higher of the two.
The financial impact of the recommendations of this Commission will be reflected through increases in expenditure on Pay, Allowances and on Pension. The likely quantum of increase on account of each of these is summarised below:
7th-pay-commission-table

The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, an increase of nearly 23.55 percent over the Business As Usual scenario. Based on the current trend, the total expenditure on Pay (including DA, but excluding other allowances), during the year 2016-17, without factoring in the recommendations being made by this Commission, is expected to be Rs 2,44,300 crore. After implementation of the recommendations of the VII CPC, this is likely to rise to Rs 2,83,400 crore, reflecting an increase of Rs 39,100 crore (16.00%).

19. Gratuity: Enhancement in the ceiling of gratuity from the existing Rs 10 lakh to Rs 20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.

20. Disability Pension for Armed Forces: The Commission is recommending reverting to a slab based system for disability element, instead of existing percentile based disability pension regime.

21. Ex-gratia Lump sum Compensation to Next of Kin: The Commission is recommending the revision of rates of lump sum compensation for next of kin (NOK) in case of death arising in various circumstances relating to performance of duties, to be applied uniformly for the defence forces personnel and civilians including CAPF personnel.

22. Martyr Status for CAPF Personnel: The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel.

23. New Pension System: The Commission received many grievances relating to NPS. It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.

24. Regulatory Bodies: The Commission has recommended a consolidated pay package of Rs 4,50,000 and Rs 4,00,000 per month for Chairpersons and Members respectively of select Regulatory bodies. In case of retired government servants, their pension will not be deducted from their consolidated pay. The consolidated pay package will be raised by 25 percent as and when Dearness Allowance goes up by 50 percent. For Members of the remaining Regulatory bodies normal replacement pay has been recommended.

25. Performance Related Pay: The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes.

26. There are few recommendations of the Commission where there was no unanimity of view and these are as follows:
i. The Edge: An edge is presently accordeded to the Indian Administrative Service (IAS) and the Indian Foreign Service (IFS) at three promotion stages from Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and the NFSG. is recommended by the Chairman, to be extended to the Indian Police Service (IPS) and Indian Forest Service (IFoS).
Vivek Rae, Member is of the view that financial edge is justified only for the IAS and IFS. Dr. Rathin Roy, Member is of the view that the financial edge accorded to the IAS and IFS should be removed.

ii. Empanelment: The Chairman and Dr. Rathin Roy, Member, recommend that All India Service officers and Central Services Group A officers who have completed 17 years of service should be eligible for empanelment under the Central Staffing Scheme and there should not be “two year edge”, vis-à-vis the IAS. Shri Vivek Rae, Member, has not agreed with this view and has recommended review of the Central Staffing Scheme guidelines.

iii. Non Functional Upgradation for Organised Group ‘A’ Services: The Chairman is of the view that NFU availed by all the organised Group `A‟ Services should be allowed to continue and be extended to all officers in the CAPFs, Indian Coast Guard and the Defence forces. NFU should henceforth be based on the respective residency periods in the preceding substantive grade. Shri Vivek Rae, Member and Dr. Rathin Roy, Member, have favoured abolition of NFU at SAG and HAG level.

iv. Superannuation: Chairman and Dr. Rathin Roy, Member, recommend the age of superannuation for all CAPF personnel should be 60 years uniformly. Shri Vivek Rae, Member, has not agreed with this recommendation and has endorsed the stand of the Ministry of Home Affairs.

Exclusive: Government salaries hiked but allowances deferred, says 7th Pay Commission chief

Exclusive: Government salaries hiked but allowances deferred, says 7th Pay Commission chief

For now, the Government employees will have to be satisfied with the bonanza at the entry level salary hike from Rs 7000 to Rs 18,000 per month while on the allowance front, it’s a wait for at least for 4 months.

As the government employees cheer the pay hike after the seventh pay commission, they will be missing out on a big chunk of their allowance hike.

The Cabinet has decided to defer the recommended allowance hike in the government employees pay package and refer the matter to a committee headed by Finance Secretary Ashok Lavasa.
Speaking to India Today, Justice (retd.) AK Mathur who headed the seventh pay commission said that this move is set to have a substantial impact.

“Allowances contribute a lot in the pay hike recommendation. If the allowance is not taken into consideration it will mean fewer amounts (for employees) because the allowance which we proposed is very substantial. We had clubbed the allowances with the basic pay which is a reasonable one”, he said.

CONGRESS SLAMS GOVT

His seventh pay commission which was formed under the UPA government had recommended average 23.5 per cent hike including the housing rent, education and transport allowances. The Congress was quick to target the government for only implementing the basic salary hike proposal.

“Government has first only increased pay to 15 per cent, not the 23 per cent. If you compare with previous government decision, we increased the salary by 40 per cent. It is cheating large section of employees. Why allowances like Medical and Transport are removed from the hike”, said Congress. spokesperson, Randeep Surjewala.

But for the government, it’s important to first balance the budgetary provisions. Although, Rs 1.02 lakh crore provision was made in the general and the railways budget for seventh pay commission, government was at risk of crossing the limit and missing the fiscal deficit target.

By deferring the allowance hike proposed by the seventh pay commission, the burden to the exchequer is reduced by a 17 per cent at Rs 84,933 crore.

“The Government must be considering the liability on them as it may have increased more than 1.02 lakh crore to exchequer if allowances were factored in. We will have to see if the matter is referred to a committee of secretary which allowances is deferred, but they will make it a lot of difference”, added Justice Mathur.

So, for now, the Government employees will have to be satisfied with the bonanza at the entry level salary hike from Rs 7000 to Rs 18,000 per month and the maximum pay cap raised from Rs 90,000 to Rs 2.5 lakh per month. On the allowance front, it’s a wait for at least for 4 months till the time finance secretary panel mulls over the proposal.

“Until the decision will be taken on the allowances issue, the present allowances will continue”, said Union Finance Minister Arun Jaitley.

Percentage of HRA in 7th pay commission after cabinet approval

Percentage of HRA in 7th pay commission after cabinet approval

The Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalising the percentage based allowances. The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

The cabinet committee reviewed the recommendations on Allowances and they are not able to give a decision over the Allowances. Hence the Union Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. And it is said that the Committee will complete its work in a time bound manner and submit its reports within a period of 4 months.

In the press release issued by government said the following

” The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.”

Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively. Whether these existing rates of HRA will be paid based on revised pay or pre revised pay..? It needs to be clarified when implementation of 7th pay commission is in process.

7th CPC Recommendation on CGEGIS is not accepted by Government

7th CPC Recommendation on CGEGIS is not accepted by Government

7th CPC Recommendation on CGEGIS is not accepted by Govt and the old scheme and rates continues
The 7th Pay Commission has recommended the following rates for Central government Employees Group Insurance Scheme (CGEGIS) . The subscription amount has been increased considerably to increase the Insurance amount .

Level of Employee Monthly Deduction (Rs.) Insurance Amount (Rs.)
10 and above 5000 50,00,000
6 to 9 2500 25,00,000
1 to 5 1500 15,00,000

This has been objected by NCJCM in its memorandum. The demanded to reduce the monthly deduction as it is much higher than the Premium rates available for Term life Insurance in Open Market. The Central Government accepted this demand and rejected this recommendation and asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

The Press release issued by the Central Government says,


” The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.”

7th CPC – GOVERNMENT REJECTED ALL THE MODIFICATIONS SOUGHT BY THE NJCA

7th CPC – GOVERNMENT REJECTED ALL THE MODIFICATIONS SOUGHT BY THE NJCA

NO INCREASE IN MINIMUM PAY AND FITMENT FORMULA
HOLD PROTEST DEMONSTRATIONS & RALLY IN FRONT OF ALL OFFICES AND AT ALL IMPORTANT CENTRES

NJCA will meet at 04:00 PM on 30th June 2016 to decide future course of action. Continue in full swing mobilization for indefinite strike from 11th July 2016.
M. Krishnan
Secretary General
Confederation
Source: Confederation

No improvement in Minimum Wage and Multiplying Factor – AIRF

No improvement in Minimum Wage and Multiplying Factor – AIRF

We should go ahead with our preparations for “Indefinite Strike – Com. Shiva Gopal Mishra
It is quite unfortunate that, our demand for improvement in the report of the VII CPC has not been considered by the government.

Therefore, it would be quite appropriate that, we should go ahead with our preparations for “Indefinite Strike”, slated to be commended from 06:00 hrs. on 11th July, 2016…. Complete letter is uploaded below:-

A.I.R.F
All India Railwaymen Federations
4,STATE ENTRY ROAD, NEW DELHI-110055
No.AIRF/160
Dated: June 29, 2016
The General Secretaries,
All Affiliated Unions,

Dear Comrades!
Sub: Cabinet approval on the VII CPC report

As all of you are aware that the Union Cabinet has accepted the report of the VII CPC today.

It has been noticed that there is no improvement in Minimum Wage and Multiplying Factor as well, which was our hard pressed demand. Instead, wages, as recommended by the VII CPC have been accepted as it is, which is highly disappointing.

Only two committees have been formed, one to take care of the allowances and another for National Pension Scheme, which will submit their reports within four months time.

It is quite unfortunate that, our demand for improvement in the report of the VII CPC has not been considered by the government.

Therefore, it would be quite appropriate that, we should go ahead with our preparations for “Indefinite Strike”, slated to be commended from 06:00 hrs. on 11th July, 2016.

You are also advised to intensify the mass mobilization.
With fraternal greetings!
Yours faithfully
(Shiv Gopal Mishra)
General Secretary
Source: AIRF

Cabinet approved improvements in the Defence Pay Matrix in Some Levels

Cabinet approved improvements in the Defence Pay Matrix in Some Levels

The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :

  • Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
  • A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
  • Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
  • Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
  • Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

Central government employees to get OROP benefits: 7th Pay Commission chief

Central government employees to get OROP benefits: 7th Pay Commission chief
 
Justice-A-K-Mathur-Seventh-Pay-Commission-OROP

Jodhpur (Rajasthan): The 7th Pay Commission has recommended One Rank One Pension (OROP) for all Central government employees.

Briefing ANI about the recommendations, 7th Pay Commission chairman Justice (Retd) A K Mathur on Wednesday said it appears that the report has been accepted in toto.

He said the One Rank, One Pension is one of the peculiar recommendations made to the government which has not been given so far.

“Though the army employees used to get the One Rank One Pension, but the civilians will also get the same One Rank, One Pension. This is a very peculiar feature. No pay commission gave that,” he added.

Justice (Retd) Mathur said the recommendations of the 7th Pay Commission will involve an additional expenditure for the government in terms of 1, 02,100 crores.

“That will include the increase in the pay structure, allowances as well as the pension for the retired employees. The peculiar feature of this report is that we have done away with the grade pay and given an open metric system,” said Justice (Retd) Mathur.

“It will be a very transparent system. The people will know where they stand. We have given them the entire manner in which they can find out their place in the metrics and after that they can determine their pay,” he added.

Justice (Retd) Mathur further said there are various allowances including house rent, transport, children’s education.

“A person who enters in the government service can reasonably expect to get about 24,000 per month. We have also recommended that the government employees should be covered by health insurance for everybody,” he said.

“We have also made a recommendation that the educational allowance should also be increased. We have also made a recommendation for very good allowances and perks for the army personnel. We have also given all paramilitary forces almost identical benefits as are given to the defence personnel,” he added.

Finance Minister Arun Jaitley said the recommendations will be implemented from 1st January this year. He said, the Pay Commission covers 47 lakh central government employees and 53 lakh pensioners.

The Minister said the entry level salary for government employees will be 18000 rupees against the existing 7000 rupees per month.

Jaitley said based on minimum pay, fitment factor of 2.57 has been approved for revising pay of all employees uniformly across all levels.

The Minister informed that 7th Pay Commission recommendations on Allowances will be referred to a Committee headed by the Finance Secretary.
ANI

Wednesday, 29 June 2016

NFIR Press Note : Expressed serious disappointment over the Government’s decision on 7th Pay Commission minimum wage

NFIR Press Note : Expressed serious disappointment over the Government’s decision on 7th Pay Commission minimum wage

The National Federation of Indian Railwaymen (NFIR)’s General Secretary expressed serious disappointment and unhappiness over the Government’s decision on minimum wage. Although there is justification of upward revision of minimum wage, the Government has not done justice to the employees. Similarly, the multiplier factor has not adequately been revised, Dr. Raghavaiah General Secretary NFIR said.

Dr. Raghavaiah further said that as already decided by the NJCA, Railway employees will go on strike from 6:00 AM of 11th July 2016.

Source : NFIR

NFIR : 7th CPC Recommendation totally disappointing

NFIR : 7th CPC Recommendation totally disappointing.

NFIR
NATIONAL FEDERATION OF INDIAN RAILWAYMEN
3,Chelmsford Road, New Delhi – 110 055
Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers Federation (ITF)

No.IV/NJCA(N)/2014/Part II
Dated: 29-06-2016
The General Secretaries of
Affiliated Unions of NFIR

Brother,

Sub: 7th CPC Recommendations – reg.

Cabinet’s decision on minimum wage is totally disappointing as no improvement has been made. Equally in multiplier factor, there is no improvement.

As already decided, the JCM constituent organizations will be compelled to go on strike.

NJCA will meet very soon (either today or tomorrow) to take stock of the situation and issue directions.
Yours fraternally,
sd/-
(Dr.M.Raghavaiah)
General Secretary
Source: NFIR

Unhappy with 7th Pay Commission hike, government employees to go on strike on July 11

Unhappy with 7th Pay Commission hike, government employees to go on strike on July 11

Govt Employees Strike

The 7th Pay Commission report that received a nod from the Cabinet chaired by Prime Minister Narendra Modi, will levy a pay hike of 23.55%.
Nearly 32 lakh central government employees have announced they will be going on a strike starting July 11, protesting against the 23.55% salary hike approved by the Cabinet on Wednesday, Zee Business channel news frash indicated.

Earlier in the day the Cabinet approved the recommendations put forth by the 7th Pay Commission panel, which will impact the salaries of one crore government employees.

Under the final approval, the basic salary of government employees will be hiked by 15% and the overall 7th Pay Commission pay hike stands at 23.55%. The central government employees, unhappy with the rate of pay hike had warned earlier that they will stage a strike on July 11, demanding a pay rise of atleast 30%.

At current levels, the salary hike is the lowest in 70 years, but a senior government official stated tight fiscal situation as the reason, stating that a provision to increase it to 18-20% was still open.

On July 4, M Krishnan, Secretary General of the Confederation of Central Government Employees and Workers issued a notice to the employees who are member and affiliated organisations regarding the pursuance of an indefinite strike from July 11 2016.

Krishnan had earlier said that if the government adopts delayed tactics or issue unilateral orders rejecting our demands, then confrontation shall become inevitable.

The Confederation of Central Government Employees & Workers on June 27, also put up a notice calling for an indefinite strike from July 11 and demonstrations and rallies in front of all important government offices and centres from July 4 to July 10.

Source: dnaindia

Cabinet clears pay hike for 1 crore central government employees, pensioners

Cabinet clears pay hike for 1 crore central government employees, pensioners

7th-pay-commission-cg-employees-finance-minister

Twitter : Arun Jaitley ✔ @arunjaitley Congratulations to central government officers, employees & pensioners on a historic rise in their salary & allowances through the 7th CPC. 

 New Delhi: In a bonanza for over 1 crore government employees and pensioners, the Cabinet today approved implementation of the 7th Pay Commission, which had recommended an overall hike of 23.5 per cent.

“Congratulations to central government officers, employees & pensioners on a historic rise in their salary & allowances through the 7th CPC (Central Pay Commission),” Finance Minister Arun Jaitley tweeted shortly after the meeting of the Cabinet headed by Prime Minister Narendra Modi.

It wasn’t however know immediately if the Cabinet had bettered the hike recommended in salary and allowances of nearly 50 lakh government employees and 58 lakh pensioners.

An official said the Cabinet has approved implementation of the recommendations from January 1, 2016.
The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.
The 23.55 per cent overall hike in salaries, allowances and pension would entail an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP, to the exchequer.

The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.

The secretaries’ panel may have recommended raising minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.

While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.

Around Rs 70,000 crore has been provisioned for it, the official said.

PTI

PRASAR BHARATI : Union Cabinet approves recommendations of 7th Pay Commission

PRASAR BHARATI : Union Cabinet approves recommendations of 7th Pay Commission

Union Cabinet today approved the recommendations of the 7th Pay Commission.

AIR correspondent quoting sources reports it will be implemented from 1st January this year.

Detail of the pay commission will be announced later in a press conference.

The 7th Pay Commission was set up in February last year to revise remuneration of over one crore central government employees and pensioners.


HIGHLIGHTS OF 7TH PAY COMMISSION RECOMMENDATIONS CLEARED BY GOVERNMENT

HIGHLIGHTS OF 7TH PAY COMMISSION RECOMMENDATIONS CLEARED BY GOVERNMENT


The Centre is likely to approve higher increase in basic pay than the nearly 15 per cent recommended by the panel for over one crore central government employees and pensioners.
The recommendations of the Seventh Pay Commission got the Cabinet nod today, which will benefit over one crore government employees and pensioners.

The pay panel had recommended a 14.27 per cent hike in basic pay — the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

HIGHLIGHTS

1. The recommendations will result in a hike in salaries of nearly 50 lakh central government employees and payouts of 58 lakh pensioners.
2. The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years.
3. The commission has recommended a minimum pay of Rs 18,000 per month, fixed an upper ceiling at Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others at present at the same pay level.
4. The date of implementation for the recommendations is January 1, 2016.
5. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.
6. After considering the increase proposed in allowances, the hike in remunerations comes to nearly 24 per cent.
7. While the Budget for 2016-17 did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.
8. A secretaries’ panel, headed Cabinet Secretary P K Sinha, has already vetted the 7th Pay Commission recommendation.
9. The total financial impact of implementing the pay commission recommendations in the 2016-17 fiscal is likely to be Rs 1,02,100 crore, as per government estimates.
10. The pay panel also recommended 'one rank one pension' kind of set-up for the central government's all civil employees, Central Armed Police Forces as well as defence personnel to bring "parity between past pensioners and current retirees with the same length of service" who retired before January 1, 2016.

Exclusive: Union Cabinet granted Seventh Pay commission recommendations

Exclusive: Union Cabinet granted Seventh Pay commission recommendations

modi-jaitley-7th-CPC

The Cabinet has cleared all recommendations made by the Seventh Pay Commission report that will result in about 23.55 percent overall increase in salaries, allowances and pension for more than 1 crore government staff and pensioners. The move is expected to give a big boost to the economy as consumption demand in urban areas is likely rise owing to the rising income levels.

In January, the government had set up a high-powered panel headed by Cabinet Secretary PK Sinha to process the recommendations of the 7th Pay Commission which will have a bearing on the remuneration of nearly 50 lakh central government

The Sinha committee has submitted its report on the recommendations, a PTI report said.

Here's a quick look at the recommendations and the likely implications for the economy:

The recommendations

The Pay Commission recommended 23.55 percent overall increase in salaries, allowances and pension. This is estimated to put an additional burden of Rs 1.02 lakh crore, or nearly 0.7 percent of the GDP, on the government.

The panel recommended a 14.27 percent increase in basic pay, the lowest in 70 years. (The 6th Pay Commission recommended 20 percent hike. This was doubled while implementing it in 2008.)

The minimum pay in government is recommended to be set at Rs 18,000 per month. This is more than double the present Rs 7,000.

The maximum pay is set at Rs 2,25,000 per month for apex scale and Rs 2,50,000 per month for cabinet secretary and others at the same pay level (as against the current Rs 90,000 per month).

In order to bring in greater transparency, the report has recommended replacing the present system of pay bands and grade pay with a new pay matrix.

Of the total financial impact of Rs 1,02,100 crore, the increase in pay would be Rs 39,100 crore, increase in allowances Rs 29,300 crore and increase in pension Rs 33,700 crore.

Also, Rs 73,650 crore of the outgo will be borne by the general budget and Rs 28,450 crore by the Railway Budget.

Implications for economy

The Pay Commission recommendations, once implemented, are expected to boost the consumption demand, and in turn growth.

As R Jagannathan argued in this article, the recommendations could turn out to be an opportunity for prime minister Narendra Modi as the "dash of additional expenditure may be just the prod required for restarting the virtuous cycle of consumption, investment, growth, profits and all the related paraphernalia".

However, there are other issues. It is going to increase the general expenditure of the government. When these recommendations were made, inflation was moderate. But the actual implementation of these recommendations is coming at a time when inflation is rearing its head again. So, there are chances that a spike in demand supported by higher pay to the government staff may just push the inflation further up.

It also has to be remembered that crude oil prices that were benign a while back are not so now. The prices for crude are seen around $50 dollar a barrel now and a further increase cannot be ruled out. However, the only thing that may come to the rescue is a Brexit-induced global demand slowdown that will keep the commodity prices, including that of crude, under check.

The Reserve Bank of India, in its last policy statement, had raised these concerns while saying the surprise rise in April inflation has rendered uncertainty its future trajectory.

"...There are upside risks – firming international commodity prices, particularly of crude oil; the implementation of the 7th Central Pay Commission awards which will have to be factored into projections as soon as clarity on implementation emerges; the upturn in inflation expectations of households and of corporates; and the stickiness in inflation excluding food and fuel," it said.

Above all, a PTI report said citing sources that the secretaries’ panel may have recommended higher pay increase, with minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.

If the government approves this, the outgo will increase further and so will the burden on government expenditure. It will also have serious repercussions on fiscal deficit of the government which has been set at 3.5 percent of GDP.

Past experience


However, Richa Gupta, senior economist, Deloitte India, thinks the net impact of the implementation of the recommendation is going to be positive on the economy.

"Overall, there are three aspects: once implemented the recommendations will result in an increase in urban demand; this may in turn lead to higher inflation and put a burden on the government spending. But past experiences tell us that the net impact of pay commission implementation has always been positive," she said.

Also, it is to be noted that the global economy may continue in a rough patch due to Brexit. In such a scenario, the only factor that could help India is the domestic demand and a 23.55 percent compensation hike for government staff will only help, Gupta added.

Source: firstpost.com

Cabinet approves 7th Pay Commission recommendations

LIVE Update : Cabinet approves 7th Pay Commission recommendations:



The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years.

The Union Cabinet on Wednesday approved the recommendations made by the 7th pay commission, news agency ANI reported.

The details of the approval, which will be made public soon, is likely to see a higher increase in the basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners.

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.

The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments.

7th Pay Commission: Government May Clear Big Pay Hikes Today

7th Pay Commission: Government May Clear Big Pay Hikes Today

cabinet-ministers_7thCPC
The Union Cabinet is likely to take up today Seventh Pay Commission recommendations (File photo)

Highlights

  •     Pay Commission recommended 23.55% hike in salaries, allowances, pensions
  •     This will put added burden of Rs. 1.02 lakh crore on exchequer annually
  •     Sources say the Finance Minister has made provisions for the payout

New Delhi:  The Union Cabinet may clear the Seventh Pay Commission today that would hike the salaries and allowances for over one crore central government employees and pensioners by at least 23.5 per cent.

Implementation of new pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs. 1.02 lakh crore on the exchequer annually or nearly 0.7 per cent of GDP. The hike, however is the lowest in last seven decades.

The government however is eyeing the economic push the move will provide to the sluggish demand scenario in the economy.

The panel headed by Cabinet Secretary PK Sinha was set up to study the recommendations of the pay commission headed by Justice AK Mathur.  The committee has submitted its report to the Finance Ministry.

The move will impact the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners. The changes are likely to be implemented from January 1, 2016.

The key recommendation of the 7th Pay Commission is a 23.55 per cent increase in salaries, allowances and pension of central government employees and pensioners. This is built around the recommendation for a 14.27 per cent hike in basic pay.

Of the total cost of Rs. 1,02,100 crore, pay increase would cost Rs. 39,100 crore, increase in allowances Rs. 29,300 crore and increase in pension Rs. 33,700 crore.

Based on the proposed rate of hike, Rs. 73,650 crore of the total payout will come from the general budget, while Rs. 28,450 crore will come from the Railways.

One of the key changes suggested by the pay commission has been the 'New Pay Structure', under which the existing system of pay bands and grade pay will be ejected and a new pay matrix will be brought in to bring about more transparency.

The 6th Pay Commission had recommended a 20 percent hike which was eventually doubled when it was implemented in 2008.

The highest pay is pegged at Rs. 2,25,000 per month for apex scale and Rs. 2,50,000 per month for cabinet secretary and others at the same pay level.

The rise will be more than double as the current pay in this scale is Rs. 90,000 per month. With this hike several senior government posts will get a salary higher than lawmakers in Parliament.

The move has led to the discontent among the lawmakers who allege disparity. However, the government is also considering a hike in salaries and allowances of lawmakers.

The minimum pay recommendation is Rs. 18,000 per month. This too is more than double of the present Rs. 7,000.

The commission has also recommended a hike in the annual increment rate to 3 per cent from the existing 2.5 per cent, increased HRA and enhanced gratuity.

Sources say Finance Minister Arun Jaitley has made provisions for the payout. Though the government is making an effort to increase revenue by bringing more under the tax net, the payout will reduce the government's kitty. Especially, because the Centre also needs about Rs. 70,000 crore to meet the One Rank One Pension (OROP) commitment.

But the government is not complaining. The huge payout, once implemented, will boost the consumption demand at a time when the economy is moving sluggishly due to poor demand.

A finance ministry source said, "Government employees are traditionally known to invest pay commission benefits into few specific sectors like real estate. If they follow the tradition, the real estate sector hit by poor demand may turn out to be the biggest beneficiary."

While some experts believe that the additional cash in the market may fuel an inflationary trend, experts say that the impact of the pay commission may become a turning point for the Prime Minister Narendra Modi's government to trigger demand that drives growth investment and profits.

Via: NDTV

7th Pay Commission report: Government set to accept all recommendations; deny retro effect

7th Pay Commission report: Govt set to accept all recommendations; deny retro effect

pay-commission-award-7th-CPC

The Cabinet is likely to approve the 7th Pay Commission award in its entirety soon. Although the pay increases recommended by the commission will take effect from January 1, 2016, the Centre may choose to disburse the increased allowances only prospectively, official sources said.

If the revised allowances take effect only from, say, September this year, the savings to the exchequer would be to the tune of Rs 11,000 crore. Additionally, if the railway ministry decided to toe the Centre’s line, the national transporter will save around Rs 3,800 crore.

The salary revision, which will benefit about 50 lakh government employees and 58 lakh pensioners, is expected to boost consumption demand and help achieve higher economic growth in FY17.

Allowances are currently roughly half of the Centre’s salary bill; as per the pay panel’s award, the steepest increase — 63% — was in allowances, while the overall rise in pay, allowances and pensions recommended was 23.55%.

The Budget in February had provided `53,500 crore towards the pay panel-induced overall rise in pay, allowances and pension (PAP) and also to finance the one-rank-one-pension scheme for the armed forces. The commission, in its November 2015 report, had estimated the additional outgo in FY17 due to its award at `73,650 crore.

“A Committee of Secretaries (headed by the Cabinet secretary PK Sinha), has finalised its report on Pay Commission recommendations… We will soon make a draft Cabinet note based on the report,” finance secretary Ashok Lavasa said. Sources said the report will be considered by the Cabinet as early as Wednesday. The committee was set up in January.

While there is no official word on the exact provision made in budget for higher pay, Lavasa in a recent interview to FE said that its premature to say whether the provisions made in the budget are adequate or not to meet the pay panel requirements.



7th Pay Commission windfall headed towards car, bike-makers

7th Pay Commission windfall headed towards car, bike-makers

Sales of two-wheelers and passenger cars could see a spurt once salaries of government employees are hiked following the seventh pay commission's recommendations

The panel's suggestions are set to be adopted by the union cabinet on Wednesday and should boost the fortunes of manufacturers at a time when demand, in the rural markets, is yet to revive.

“With the states and PSUs also set to effect similar hikes, we see a permanent fiscal stimulus of $50 billion over the next two years, with significant multiplier effect on GDP. This should boost consumption, reduce slackness in the economy and step up investment demand. Large consumer discretionary names are likely to be the top gainers in this scenario,” said Religare Capital Markets in a flash report.

Volumes of motorcycles and small cars have remained subdued over the past one year and should see a pick up, say analysts, once disposable incomes of government employees go up.

“Almost 89% of the central government employees are in lowest rung Group C. Further, 53% of the central government employees reside in rural markets and 44% of them are under 40 years of age. While 7th CPC might not be as beneficial due to the absence of arrears, we believe it would still boost demand for two-wheelers especially in rural markets,” said Jinesh Gandhi and Aditya Arora of Motilal Oswal in a note on the sector.

According to report prepared by Credit Suisse, the 6th Pay Commission which was implemented in Aug 2008 resulted in almost a 10-fold increase in Maruti's sales to government employees between FY08 and FY12. The share of sales to government employees rose in this period from 2% to 15% of total sales.
The seventh pay commission (CPC) has recommended a hike of 25% across categories and would influence over 17.5 million public sector employees including state government, central and state public sector units (PSUs) in the coming few years.

The last pay commission came with arrears of almost two years which also boosted consumption. This time the arrears will be given for eight months and to recover the lost volumes companies may have to wait for a couple of quarters.

In FY 16 Maruti Suzuki’s largest selling car Alto saw its volumes decline by 0.40% to 2,63,422 units when compared to 2,64,492 units in FY 15 as consequence of lack of demand in the rural areas. The entire small car segment of Maruti which still constitutes 22%- 25% of the total volumes - saw a small increase of 1.7% in the last fiscal year. The Gurgaon based company still gets 35% of its volumes from the rural market.

Motorcycle volumes also declined by 0.23% to 1,07,00,466 units during the last fiscal year. Hero Motor Corp – India’s biggest two wheeler manufacturer- was adversely impacted as 50% - 55% of the total volumes came from the rural markets.

“The seventh pay commission will help the make A and B segment cars recover the volumes as 50% of the government employees stay in the rural corners. Also companies like Hero, TVS and Bajaj are also set to benefit from the increased income of government employees,” said as automotive analyst with an institutional brokerage firm.

Since the recommendations are set to be implemented from August, the automobile industry is gearing up for a healthy festival period. Companies like Tata Motors have already launched schemes for government employees.

According to experts, the pay hike of government employees will provide an opportunity for companies like Tata Motors, General Motors, Honda, Ford and others to gain volumes as well apart from the top three car makers.

Source: FE

Cabinet to consider 7th pay Commission today

Cabinet to consider 7th pay Commission today

New Delhi: The union cabinet is likely to consider the 7th Pay Commission recommendations today, government sources said.

The recommendations will result in a hike in salaries of nearly 48 lakh central government employees and payouts of 52 lakh pensioners.

The Centre had earlier in January set up a 13-member Empowered Committee of Secretaries headed by Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission.

The Empowered Committee has submitted its report to the Finance Ministry, Finance Secretary Ashok Lavasa said on Monday, adding its report is being translated into a note for Cabinet.
“It in most likelihood will come up before the Cabinet on Wednesday,” A Finance Ministry official said.

The 7th Pay Commission has recommended a minimum pay of Rs 18,000 per month, fixed an upper ceiling at Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others at present at the same pay level.

The 7th Pay Commission report was submitted to Finance Minister Arun Jaitley on November 19. The total financial impact of implementing its in the 2016-17 fiscal is likely to be Rs 1,02,100 crore, as per government estimates.

The 7h Pay Commission was set up by the UPA government in February 2014, The Commission headed by Justice A K Mathur submitted its 900-page final report, recommending 23.55 per cent hike in salaries, allowances and pensions of Central government employees and pensioners.

The 7th Pay panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous Sixth Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

Sources said that the government will not double it this time. The average increase in basic pay for all government employees will be in the region of 18-20%.

“Considering the tight fiscal position this year, the government may improve upon the Pay Commission recommendation for basic pay to 18% or at best 20%,” a senior official said.

The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one installment.

7th Pay Commission recommendations, 7th Pay Commission News, 7th Pay Commission Demands,7th Pay Commission Implementation, 7th CPC News, 7CPC

7th Pay Commission to get Cabinet nod soon, here’s why you will get 10 per cent less arrears in hand

7th Pay Commission to get Cabinet nod soon, here’s why you will get 10 per cent less arrears in hand

The 7th Central Pay Commission recommendations are likely to be cleared by the Union Cabinet on Wednesday, leading to a much-awaited bonanza for 47 lakh central government employees and 53 lakh pensioners in the form of higher salaries and arrears from January 1, 2016, the date from which the recommendations will be made applicable.

However, if you are one of the working central government employees your arrears would come with a 10 per cent applicable deduction, that would be passed on to the National Pension System (NPS). Similar deductions are applicable to the increased salary component.

The 10 percent deduction from arrears and salary will come with a matching contribution from the government into the NPS for managing for creating a pension corpus at the time of retirement.
“The arrears that Central government employees will get with effect from January 2016 will come with 10 per cent deduction which will flow into their individual accounts under the NPS. There will be a matching contribution from the government,” Chairman, Pension Fund Regulatory and Development Authority (PFRDA), Hemant Contractor, told FeMoney.

It is expected that the increased salary and arrears would take effect from August 1, 2016.
Contractor said that the total amount that would flow into the NPS kitty from the 7th Pay Commission would be substantial. “We are expecting the money arising out of 7th Central Pay Commission recommendations will be released soon. The increased flow would be substantial. However, we have not been able to make an exact calcuation on the amount since we do not know the payment schedule. The amount would depend on the time and amount of arreards released in each tranche if it is released in parts,” the PFRDA Chairman said.

NPS is applicable to all employees joining services of Central Government, including Central Autonomous Bodies (except Armed Forces) on or after January 1, 2004. Many State Governments have adopted NPS architecture and implemented NPS mandatorily for their employees joining on or after a cut-off date.

A subscriber contributes 10 per cent of his salary plus DA into his Tier-I (pension) account on a mandatory basis every month which is invested along with the matching contribution from the employer.

The accumlation is managed by select pension fund managers (PFMs) as per guidelines laid down by PFRDA and is used for old age income benefit of subscribers. The pension regulator administer the National Pension System.

The 7th Pay Commission has recommended a 23.55 per cent hike in pay and allowance. While pay will go up by 16 per cent, increase in allowance will be 63 per cent and increase in pension 24 per cent. The impact the 7th Pay Commission recommendations on the government coffers will be to the tune of Rs 1.02 lakh crore, with Rs 73,650 crore impactg on the Union Budget and Rs 28,450 crore on the Railway Budget.

7th Pay Commission Allowance to Pension here’s everything you need to know

7th Pay Commission  Allowance to Pension here’s everything you need to know
The Union Cabinet is expected to take up on Wednesday the Empowered Committee of Secretaries’s report on the 7th Pay Commission.
The Empowered Committee of Secretaries, which was formed to look into recommendations of the Seventh Pay Commission, has finalised its report, Finance Secretary Ashok Lavasa said.
Here is everything you need to know about the proposed recommendations in the 7th Pay Commission. Read more to find out what the Pay Commission changes are, if accepted by the Cabinet.
Date of implementation
The recommended date of implementation is January 1, 2016. So, government employees will get arrears from January this year.

Minimum Pay
Based on the Aykroyd formula, the minimum pay in government is recommended to be set at Rs 18,000 per month.

Maximum Pay
Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

What are the financial implications?
The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, over the expenditure as per the Business As Usual scenario. Of this, the increase in pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore and increase in pension would be Rs 33,700 crore.
Out of the total financial impact of Rs 1,02,100 crore, Rs 73,650 crore will be borne by the General Budget and Rs 28,450 crore by the Railway Budget.
In percentage terms the overall increase in pay & allowances and pensions over the Business As Usual scenario will be 23.55 per cent. Within this, the increase in pay will be 16 per cent, increase in allowances will be 63 per cent, and increase in pension would be 24 per cent.
The total impact of the Commission’s recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay+Allowances+Pension) to GDP compared to 0.77 per cent in case of 6th Central Pay Commission.
What is the New Pay Structure?
The present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.
Fitment
A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.
Annual Increment
The rate of annual increment is being retained at 3 per cent.
Modified Assured Career Progression (MACP)
* Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”.
* The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service.
* No other changes in MACP recommended.
Military Service Pay (MSP)
The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows:

Present Proposed
1. Service Officers ?6,000 ?15,500
2. Nursing Officers ?4,200 ?10,800
3. JCO/ORs ?2,000 ?5,200
4. Non Combatants (Enrolled) in the Air Force ?1,000 ?3,600

Short Service Commissioned Officers
Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. They will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute.
Lateral Entry/Settlement
The Commission is recommending a revised formulation for lateral entry/resettlement of defence forces personnel which keeps in view the specific requirements of organization to which such personnel will be absorbed. For lateral entry into CAPFs an attractive severance package has been recommended.
Headquarters/Field Parity
Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.

Cadre Review
A systemic change in the process of Cadre Review for Group A officers recommended.
Allowances
The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.
Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance.
The current Siachen Allowance per month and the revised rates recommended are as follows:


Present Proposed
i. Service Officers ?21,000 ?31,500
ii. JCO/ORs ?14,000 ?21,000

House Rent Allowance
Since the Basic Pay has been revised upwards, the Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 per cent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 per cent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 per cent and 10 per cent when DA crosses 100 per cent.
In the case of PBORs of Defence, CAPFs and Indian Coast Guard compensation for housing is presently limited to the authorised married establishment hence many users are being deprived. The HRA coverage has now been expanded to cover all.
Any allowance not mentioned in the report shall cease to exist.
Emphasis has also been placed on simplifying the process of claiming allowances.
Advances: a. All non-interest bearing Advances have been abolished. b. Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs 25 lakh from the present Rs 7.5 lakh.
Central Government Employees Group Insurance Scheme (CGEGIS): The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:

Present Proposed
Level of Employee Monthly Deduction (?) Insurance Amount (?) Monthly Deduction (?) Insurance Amount (?)
10 and above 120 1,20,000 5000 50,00,000
6 to 9 60 60,000 2500 25,00,000
1 to 5 30 30,000 1500 15,00,000

Medical Facilities
Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended.
Meanwhile, for the benefit of pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis.
All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.
Pension
The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.
The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix.
This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent. In the case of defence forces personnel this amount will include Military Service Pay as admissible.
Fifty percent of the total amount so arrived at shall be the new pension. An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension.
The pensioner will get the higher of the two.
Gratuity
Enhancement in the ceiling of gratuity from the existing Rs 10 lakh to Rs 20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent. Disability Pension for Armed Forces
The Commission is recommending reverting to a slab based system for disability element, instead of existing percentile based disability pension regime.
Ex-gratia lump sum compensation to next of kin
The Commission is recommending the revision of rates of lump sum compensation for next of kin (NOK) in case of death arising in various circumstances relating to performance of duties, to be applied uniformly for the defence forces personnel and civilians including CAPF personnel.
Martyr Status for CAPF Personnel
The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel.
New Pension System
The Commission received many grievances relating to NPS. It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.
Regulatory Bodies
The Commission has recommended a consolidated pay package of Rs 4,50,000 and Rs 4,00,000 per month for Chairpersons and Members respectively of select Regulatory bodies. In case of retired government servants, their pension will not be deducted from their consolidated pay. The consolidated pay package will be raised by 25 percent as and when Dearness Allowance goes up by 50 percent. For Members of the remaining Regulatory bodies normal replacement pay has been recommended.
Performance Related Pay
The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes.

Source:  Indian express

Tuesday, 28 June 2016

Implementation of 7th CPC : Finance Ministry prepared a Cabinet note based on ECoS report – AIDTOA

Implementation of 7th CPC : Finance Ministry prepared a Cabinet note based on ECoS report – AIDTOA
Implementation-of-7th-CPC-AIDTOA

Based on the ECoS report, the Finance Ministry may be preparing a Cabinet note and the VII CPC issue may come up for approval by the Cabinet as early as June 29.

GOVT SHOULD NOT TAKE THE CENTRAL GOVT. EMPLOYEES & OFFICERS FOR A RIDE.
CONFRONTATION WILL BECOME INEVITABLE IF UNILATERAL ORDERS ARE ISSUED

It seems that Govt. is not in favour of a negotiated settlement on the 7th CPC related issues. Based on the ECoS report, the Finance Ministry may be preparing a Cabinet note and the issue may come up for approval by the Cabinet as early as June 29.

The Seventh CPC report was submitted on 19th November 2015 after a delay of about 3 months. The Government especially the Finance Minister had assured that the final decision over the report will be taken within 4 months. On 19th June 2016, the delay has crossed seven months. Till date the Govt. has not come forward for a negotiated settlement. Instead, Empowered Committee of Secretaries (ECoS) headed by Cabinet Secretary conducted a meeting with the staff side on 1st March 2016. In the meeting Govt. did not disclose its mind on any of the demands raised by the staff Side in the charter of demands submitted to Govt. Staff Side explained the justification for each demand but official side didn’t make any comment, either positive or negative. The concluding paragraph of the minutes of the meeting reads as follows:

“After hearing the participants, Cabinet Secretary observed that the deliberations have helped ECoS in understanding the major concerns of the staff side and said that all issues have been taken note of. He assured that fair consideration will be given to all points brought out by JCM before taking final views. He further stated that the ECoS needs to examine the Report of the Commission in entirety as well as the issues raised by JCM in consultation with all other stake holders. As such, it may take some time to take a final call on the recommendations of the Commission.”

It may be seen that, neither did the Govt. side made any commitment on any demands, nor did they indicate in the minutes that further discussion will be held with the staff side to arrive at a negotiated settlement on each demands. It seems that the Govt. is moving ahead to issue unilateral orders taking the staff side for a ride.

The JCM staff side Secretary, in his letter dated 2nd May 2016, addressed to Cabinet Secretary, has made the stand of the staff side clear, without any ambiguity. The letter reads as follows:

“I have been directed to draw your attention towards minutes of the Standing Committee of National Council JCM held on 7th May 2008 and our rejoinder submitted to Govt. in the matter of Report of 6th CPC.
You will kindly find that it was not only a general discussion, but also official side explained their views on each and every issue.

I would therefore request your good self to kindly arrange for similar type of meeting for bi-lateral settlement on each of the issues raised by the staff side, NC/JCM before the Empowered Committee of Secretaries.”
Thus the picture is clear now. The Government, it seems, has a hidden agenda to take the staff side for granted without giving any further opportunity for a negotiated settlement. The staff side on the other hand has taken a position that if unilateral orders are issued, without taking the staff side into confidence, the NJCA shall go ahead with the indefinite strike from 11th July 2016 as already informed to the Govt.

The coming days are crucial. If the Govt. adopts delaying tactics or issue unilateral orders rejecting our demands, then confrontation shall become inevitable. The stand taken by the then Nehru Govt. that “Pay Commission report is an award and is not negotiable” has resulted in the historic indefinite strike of 1960, which commenced on July 11th midnight.

Central Government Employees and Officers comprising Railways, Defence, Postal and other Central Government departments are demanding modification in the recommendations of 7th Central Pay Commissions including minimum wage and fitment formula. Other demands are scrapping of New Contributory Pension Scheme, No FDI in Railways and Defence, filling up of vacancies, No outsourcing, downsizing, contractorisation and corporatisation etc.

The NJCA & CCGGOO had already given strike notice to Government. As the Government is not ready for a negotiated settlement, the Central Government employees and Officers have to intensify the campaign and preparations and make the strike a total success.

About 33 lakhs Central Government Employees and Officers will participate in the strike. 40 lakhs Central Government Pensioners have declared their solidarity with the strike. Central Trade Unions had also extended their full support. State Government Employees Federations have cautioned the Central Government that they will also be compelled to join the strike if Government refuses to settle the demands relating to 7th CPC recommendations as majority of the state Governments are implementing the Central pay parity to their employees also.

On the one hand NJCA & CCGGOO are fighting for the cause of Central Government Employees and Officers and on the other hand rumour mongers are spreading false news through social media. Rumour mongers are coming out daily with different kind of news and pay scales about 7th Pay Commission. Please don’t believe rumour mongers on WhatsApp, Facebook and other social media sources.

There had been no meaningful discussions with the NJCA & CCGGOO so far. The computation of Minimum wage by the 7th CPC deserves to be rejected as the commission has, in a bid to suppress the entitlement doctored the formula itself. The wages of an MTS in civil service, who is a group C employee cannot be less than Rs 26000 on the basis of the formula evolved in 1957 to which the Government is a party. There cannot therefore be any question of reduction in the quantum of minimum wage.

The NPS, which the Government introduced for those joined after 1.1.2004 in Government service has to be construed as a fraud perpetuated and deserves to be abandoned. There cannot be two classes of civil servants in the country; one making contribution but still not getting any assured pension and the other entitled for a statutory defined pension without any contribution. Those who are covered by the NPS in Central Civil Service are now more than 40% of the total personnel. The Government must be bold enough to address this issue.

It is high time, that the Government comes forward, hold meaningful and fruitful discussion with NJCA & CCGGOO and settle the Charter of demands. The continued procrastination is a sure step to confrontation and the Central government employees in the Country will certainly commence the strike action from 11.7.2016.

The entire civil services, which include the Railways, Postal, Defence and all other services of the Government of India, will come to a grinding halt on 11.7.2016.

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