Monday, 15 February 2016

Merge DA with Basic this year and Defer Increments: Pay Panel Member

Merge DA with Basic this year and Defer Increments: Pay Panel Member

merge-DA-basic-pay-pay-panel


Member of the Seventh Central Pay Commission Rathin Roy has suggested that to meet its fiscal deficit target the Government should merge the basic pay and dearness allowance (DA) of central government employees in the current year and defer implementing any real increases in pay and pensions. This, the member has said, could be done by compensating those who would have to bear the burden of the deferred effect by giving them a “more generous award distributed over several years”.

“I am saying that the increment need not all be given at one go… It can be staggered and made more generous… So this could be done for pay and for pension,” Dr. Roy told The Hindu in an exclusive interview. “Now I am not competent to say whether this is politically feasible or not,” he, however, added.

Last month, the Union Cabinet set up an empowered committee of secretaries under the Cabinet Secretary for processing the recommendations of the Commission.

The pay and pension revision recommendations of the Commission are scheduled to take effect from January 1, 2016, but Dr. Roy, who is also the National Institute of Public Finance and Policy’s Director, has suggested that the implementation should be pushed to April 1.

What they should get, from April 1, 2016, is what they would get if we merge the basic pay and the DA, which is more or less what they are already getting, he said. “That will mean some increase in allowances but other than house rent allowance the burden of that [on the government budget] will not be very high.” He has also recommended that the Government defer allowances, principally the house rent allowance. “The case for that is strong because we are in the midst of fairly flat growth in consumption expenditure and rents are not going up much.”

Ahead of the presentation of Union Budget 2016-17, the Government is considering options for keeping the fiscal deficit for the next year within the Fiscal Responsibility and Budget Management target. The Government’s fiscal deficit in 2008-09, the year the Sixth Central Pay Commission award was implemented, doubled to 6 per cent, though not all of the increase was on account of the pay and pension hikes. Currently, Central government pay and allowances account for 1 per cent of the country’s GDP.

The Seventh Pay Commission, which submitted its report in November 2015, estimated that the total financial impact due to the hike in pay and allowances of central government employees recommended by it would be Rs 1,02,100 crore. Of this, Rs 73,650 crore will be borne by the General Budget and Rs. 28,450 crore by the Railway Budget. The Commission was set up by the UPA government in February 2014 to recommend revisions of remuneration for 48 lakh central government employees and 55 lakh pensioners.

Source: The Hindu

7th Pay Commission Latest News – Difference in Economical Conditions now and when 6CPC implmented

7th Pay Commission Latest News – Difference in Economical Conditions now and when 6CPC implemented – Article published in Business Today compares the present fiscal scenario and in 2008 when 6th Pay Commission recommendations were implemented by Govt

Various parameters such as fiscal deficit, current account deficit, foreign investment in govt bonds growth in GDP etc shows that of Economic Conditions now are better than 2008, the year when 6th CPC Pay was granted.

7th Pay Commission latest news - Present economic condition7th Pay Commission Latest News – Global financial services major UBS in a report said investors are complacent about any potential change in India’s policy framework, especially in the backdrop of 7th Central Pay Commission. The brokerage expects CPC to negatively impact government’s fiscal consolidation path and sees states to face bigger impact.

“Impact of CPC on Central government’s fiscal is likely 0.4 per cent of GDP, which many investors viewed as not a big deal. The impact is however much bigger on states (over 1.1 per cent of GDP),” said UBS in a report.

UBS added that its baseline scenario is of a staggered, delayed or diluted implementation of CPC, but also said that any delay or dilution to CPC would be a negative surprise for specific sectors and stocks.

The report further noted that consumption boost is not guaranteed even with CPC, neither is it surely sustainable beyond 2-3 quarters.

The brokerage pointed out following five reasons that make macro backdrop in 2016 look very different from that of 2008, the last time India adopted Central Pay Commission (CPC) and expanded fiscally:

  1.  Fiscal deficit: Country’s central fiscal deficit was at 2.6 per cent as compared to 4.1 per cent in 2016, while combined fiscal deficit in 2008 came in at 4 per cent versus 6.3 per cent in 2016.
  2. Current account deficit: CAD widening was financed easily in 2008 given improving global liquidity or risk appetite, although current environment doesn’t appear to be as conducive.
  3. International investors: Global investors invested heavily in government bonds. They were 1/10th of the $30 billion now. They arguably care more for macro stability vs near-term growth.
  4. GDP growth was slowing: GDP growth was not only slowing but also was ruling below trend versus a recovering (albeit slower than expected) economy now;
  5. Election scenario: Lok Sabha election was in 2009, while next one is due in 2019.

The global brokerage sees year-end Nifty target in 2016 at 8,200 level, which offers better risk-reward post recent correction. Its downside scenario implies end-2016 Nifty of 7,000.

Source: Business Today

Brief note on OROP for EDP – CGDA

Brief note on OROP for EDP – CGDA

IMPLEMENTATION OF OROP SCHEME FOR DEFENCE PENSIONERS

The Ministry of Defence, Government of India vide press release dated 05.09.2015 announced decision of the Government to implement OROP to Defence Forces pensioners.

The Ministry of Defence, Government of India vide notification dated 07.11.2015 issued formal orders on implementation of the OROP scheme bringing out the broad guidelines on the benefits and also the procedure for working out the benefits under OROP.

CGDA in close association with the PCDA (P) Allahabad, PCDA (Navy) Mumbai and CDA/JCDA (AF) prepared 101 tables indicating Rank, Group, Qualifying Service of PBOR and Commission Officers of the Defence Forces based on working principles within the ambit of the MOD notification. The tables along with draft Government letter on the subject matter were forwarded to the MoD in record time after the working principles for implementation of the scheme were approved by the MoD/GOI.

The Department of EWS, MoD, GOI has now issued detail Government Order implementing the OROP scheme vide letter dated 03.02.2016 uploading the 101 tables of various ranks and categories of Defence pensioners along with it through the website www.desw.gov.in.

The Government letter on OROP scheme along with 101 tables have been circulated to all PDAs by PCDA (P) Allahabad vide their Circular No. 555 dated 04.02.2016 with detailed implementation instructions for working out the schedule for release of OROP benefits to around 18.61 lakh pensioners settle across the length and breadth of the country. Copy of PCDA (P) Allahabad circular No. 555 is available on their website www.pcdapension.nic.in.

The financial benefit under new orders is to be paid from 01.07.2014 onwards. The provisions of Government Order provides for release of arrears in 4 equal half yearly installments—first installment in the current financial year and the remaining three installments in the subsequent years. However, arrears for family pensioners and pensioners in receipt of gallantry award are to be paid in one installment.

Click to view the note

Authority: www.cgda.nic.in

One Rank One Pension Arrears Table for various Ranks of Defence Pensioners

OROP applies to all pensioners / family pensioners who had retired / discharged / invalided out from service / died in service or after retirement in the rank of Commissioned Officers, JCOs / ORs and Non-Combatants (Enrolled), Army, Navy, Air Force, Defence Security Corps, and Territorial Army

One Rank One Pension Arrears Table for various Ranks of Defence Pensioners

One Rank One Pension Arrears Table for various Ranks of Defence Pensioners as published in Ex-airman Blog – Pension Arrears for the period from 1st July 2014 to 31st January 2016

Ex-airman Blog has come up with OROP Arrears table up to 31st January 2016, for each rank of Defence Pensioners which contain the chart of arrears of pension applicable for each qualifying service in a particular rank.

One Rank One Pension Arrears Table / ready reckoner is available for following ranks of defence pensioners
  1. Sepoy Group X,
  2. Sepoy Group Y,
  3. Naik Group X,
  4. Naik Group Y,
  5. Havildar Group X,
  6. Havidar Group Y
  7. Naib Subedar- group X,
  8. Naib Subedar- group Y,
  9. Subedar- group X,
  10. Subedar- group Y,
  11. Subedar Major-Group X,
  12. Subedar Major-Group Y,
  13. Honorary lieutenant,
  14. Honorary Captain 

OROP AND ARREARS TABLE FOR SEPOY GROUP X , SEPOY GROUP Y

Sepoy – groupX
Sepoy – groupY
QSNOWOROPDiffArrearsQSNOWOROPDiffArrears
15596171451184479881551026665156363348
15.56071714510744352915.551966665146959539
1661827145963390301652916665137455688
16.5629271458533457216.553856665128051878
1764027145743301141754806665118548028
17.5651371456322561517.555746698112445556
1866237145522211571856696698102941705
18.5673471454111665818.557836783100040530
196844714530112200195858678392537490
19.569547145191774119.55952687592337409
2070657145803242206047687582833559
20.57065714580324220.56047687582833559
2170657145803242216047687582833559
21.57065714580324221.56047687582833559
2270657145803242226047687582833559
22.57065714580324222.56047687582833559
2370657145803242236047687582833559
23.57065714580324223.56047687582833559
2470657145803242246047687582833559
24.57065714580324224.56047687582833559
2570657145803242256047687582833559
JAN7065714580324225.560477070102341462
26706571458032422660477070102341462
26.57065714580324226.560477070102341462
27706571458032422760477070102341462
27.571757145-30-121627.56141707092937652
2872857145-140-5674286235707083533843

OROP And Arrears Table For Naik- group X , Naik – group Y

TABLE-OROP AND ARREARS UPTO 31 JAN 2016
Naik- group X
Naik- group Y
QSNOWOROPDiffArrearsQSNOWOROPDiffArrears
15596183752414978391551567170201481627
15.56071837523049338115.552597170191177453
16618283752193888821653627170180873278
16.56292837520838442416.554657170170569104
17640283751973799661755687170160264929
17.56513837518627546717.556717170149960754
18662383751752710091857747170139656580
18.56734837516416651018.558787170129252365
19684483751531620511959817170118948190
19.56954837514215759319.560847170108644016
2070658375131053094206187717098339841
20.57154837512214948720.56290717088035666
2172718375110444745216393717077731492
21.5738983759863996321.56496717067427317
227506837586935221226599717057123143
22.5750683758693522122.56599717057123143
237506837586935221236599717057123143
23.5750683758693522123.56599717057123143
2475068525101941300246599717057123143
24.57506852510194130024.56599717057123143
2575068525101941300256599717057123143
25.57506852510194130025.56599717057123143
2675068525101941300266599717057123143
26.57506852510194130026.56599717057123143
2775068525101941300276599717057123143
27.5762385259023655827.56702717046818968
287740852578531816286805717036514793

OROP And Arrears Table For Havildar- group X , Havildar- group Y

TABLE-OROP AND ARREARS UPTO 31 JAN 2016
Havildar- groupX
Havildar- groupY
QSNOWOROPDiffArrearsQSNOWOROPDiffArrears
15637485852211896121553017550224991152
15.56513871522028924715.554167598218288436
16665187782127862071655317598206783776
16.56790877819888057416.556477598195179074
17692989251996808981757627598183674413
17.57067892518587530517.558777598172169752
18720689251719696711859927655166367401
18.57344892515816407818.561087693158564240
19748390551572637131962237693147059579
19.57621905514345812019.563387693135554918
20776090551295524862064537795134254391
20.57898905511574689320.565687795122749730
21803790551018412602166847795111145029
21.5817690558793562621.56799779599640368
228314905574130033226914779588135707
22.5845392808273351822.57029779576631046
238591928068927925237145779565026345
23.58730979310634308323.562907795150560998
248868979392537490247375780843317549
24.5886897939253749024.57375780843317549
258868979392537490257375780843317549
25.5886897939253749025.57375780843317549
268868979392537490267375799562025129
26.5886897939253749026.57375799562025129
278868979392537490277375799562025129
27.5900797937863185727.57490799550520468
289145979364826263287605799539015807

OROP And Arrears Table For Naib Subedar- group X & Y

Naib Subedar- groupX
Naib Subedar- groupY
QSNOWOROPDiffArrearsQSNOWOROPDiffArrears
1569741048035061420981564708740227092003
15.5715110480332913492415.566328740210885437
1673251048031551278721667948740194678871
16.5749910480298112082016.569558740178572346
1776741048028061137271771178740162365780
17.5784810480263210667517.572798740146159214
188023104802457995821874418740129952648
18.581971048022839253018.576028740113846123
19837110480210985478197764874097639557
19.585461048019347838519.57926874081432991
20872010480176071333208088875566727034
20.588951048015856424020.58249875550620508
21906910480141157188218411885344217914
21.592431048012375013621.58573893436114631
22941810527110944948228735900527010943
22.595921068210904417822.58896933844217914
23976710804103742030239058933828011348
23.599411097110304174623.5922093381184783
2410115111381023414622493829429471905
24.510290111388483436924.5954396521094418
251046411138674273172597059733281135
25.510639112055662294025.598879946592391
2610813112053921588826100291040537615239
26.510987112612741110526.510190104152259119
271116211261994012271035210415632553
27.5113361141882332327.51051410577632553
28115101195844818157281067510742672716

OROP And Arrears Table For Subedar- group X & Y

TABLE-OROP AND ARREARS UPTO 31 JAN 2016
Subedar- groupX
Subedar- groupY
QSNOWOROPDiffArrearsQSNOWOROPDiffArrears
157943109232980120779157255109233668148664
15.5814110923278211275415.57436109233487141328
168340110452705109634167618109233305133952
16.5853911045250610156816.57799109233124126616
17873711150241397799177980111503170128480
17.5893611615267910858017.58162111502988121104
189134116152481100555188343111502807113768
18.593331161522829248918.58525111502625106391
1995311161520848446519870611150244499055
19.597301161518857639919.5888711150226391719
2099291161516866833420906911150208184343
20.5101271161514886030920.5925011150190077007
21103261161512895224321943111150171969671
21.5105241161510914421821.5961311150153762295
2210723116158923615322979411150135654959
22.510921116156942812822.5997511150117547623
2311120116154952006223101571115099340246
23.511318116152971203723.5103381115081232910
24115171161598397224105201115063025534
24.511716117160024.5107011115044918198
2511914128209063672025108821115026810862
25.512113128207072865525.51106411150863486
261231112820509206302611245114271827376
26.512510128203101256426.51142611476502027
2712708130853771528027116081185925110173
27.51290713085178721427.51178911859702837
281310513215110445828119701226829812078
28.51310513215110445828.51310512268-837-33924
29131051341531012564291310512268-837-33924
29.513105134153101256429.51310512460-645-26142
30131051364353821805301310512690-415-16820

OROP And Arrears Table For Subedar Major-Group X & Y

TABLE-OROP AND ARREARS UPTO 31 JAN 2016
Subedar Major-GroupX
Subedar Major-GroupY
QSNOWOROPDiffArrearsQSNOWOROPDiffArrears
158237117703533143192157446113053859156405
15.5844311952350914222015.57632114803848155959
168649121343485141247167818116543836155473
16.5885512322346714051816.58004118343830155230
179060125093449139788178190120143824154987
17.5926612702343613926117.58377122003823154946
189472128953423138734188563123853822154906
18.5967812895321713038518.58749123853636147367
199884128953011122036198935123853450139829
19.51009012895280511368719.59121123853264132290
2010296128952599105337209307123853078124751
20.5105021289523939698820.59493123852892117213
211070812960225291274219680123852705109634
21.5109141296020468292421.59866123852519102095
221112012960184074575221005212385233394556
22.5113251296016356626722.51023812385214787018
231153112960142957917231042412385196179479
23.5117371296012234956823.51061012565195579236
241194312960101741219241079812565176771617
24.512149129608113287024.51098312565158264118
25123551306871328898251116812565139756620
25.512561130685072054925.51135512565121049041
26127671306830112200261154112565102441503
26.5129731306895385026.5117271256583833964
2713179135573781532027119131256565226426
27.51338513557172697127.5120991257547619292
2813590135900028122851257529011754
28.51359013795205830928.5122851257529011754
2913590139904001621229122851304576030803
29.513590139904001621229.5122851304576030803
3013590141405502229230122851304576030803
30.513590143487583072230.5122851304576030803
3113590143487583072231122851304576030803
31.513590143487583072231.5122851304576030803
3213590143487583072232122851304576030803
32.513590143487583072232.5122851304576030803
>+33135901434875830722>+33122851304576030803

OROP And Arrears Table For Honorary LT and Honorary Captain

TABLE-OROP AND ARREARS UPTO 31 JAN 2016
Honorary LT
Honorary CAPT
QSNOWOROPDiffArrearsQSNOWOROPDiffArrears
15937311770239797150159785129763191129331
15.596081195223449500215.510030131773147127548
169842121342292928951610275133773102125724
16.5100761232222469103016.510519135843065124224
1710310125092199891251710764137903026122644
17.5105451270221578742317.511088140032915118145
1810779128952116857611811253142162963120090
18.5110131289518827627718.511498144362938119077
1911248128951647667531911742146552913118064
19.5114821292114395832319.511987148822895117334
2011716131171401567832012232151082876116564
20.5119511332013695548620.512476153422866116159
2112185135221337541892112721155752854115673
21.5124191373113125317521.512965155752610105783
221265413940128652122221321015575236595853
22.5128881415612685139222.51345515575212085924
231312214371124950622231369915575187676034
23.5133571459312365009523.51394415945200181101
241359114815122449609241418915945175671171
24.5138251504412194940624.51443315945151261281
251406015273121349163251467815945126751352
25.514294152739793967925.51492215945102341462
2614528152737453019526151671594577831532
26.514763152735102067026.5154121594553321602
2714997153363391374027156561620154522089
27.515231158215902391327.5159011620130012159
2815465160906252533128161451701086535058
28.515465160906252533128.5161451701086535058
2915465160906252533129161451701086535058
29.515465160906252533129.5161451701086535058
3015465160906252533130161451701086535058
30.515465160906252533130.5161451701086535058
3115465160906252533131161451701086535058
31.515465160906252533131.5161451701086535058
3215465160906252533132161451701086535058
32.515465160906252533132.5161451701086535058
>+33154651616069528168>+33161451701086535058
 Source : The Voice of Pensioners – Ex Airman Blog

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