Saturday, 23 April 2016

7th Pay Commission – How Govt will Save Rs 11,000 Crore in Allowances

7th Pay Commission – How Govt will Save Rs 11,000 Crore in Allowances


7th Pay Commission – How Govt will Save Rs 11,000 Crore – Allowances currently are roughly half of the Centre’s salary bill.

The Centre is likely to implement the 7th Pay Commission award from September-October, the beginning of the festive season, to give a consumption boost to the economy. However, in order to restrict the budgetary outgo, it would pay the revised allowances only prospectively, unlike the pay component that will be paid along with arrears from January 2016.

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

If the revised allowances take effect only from September this year, the savings to the govt would be to the tune of Rs.11,000 crore, official sources said. Additionally, if the railway ministry decided to toe the Centre’s line, the national transporter will save around Rs.3,800 crore. The Budget in February had provided Rs.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 7th Pay commission had estimated the additional outgo in FY17 due to its award at Rs.73,650 crore.

The Centre’s additional bill on allowances in FY 17 due to the pay panel would have been about Rs.22,000 crore, but since it would release allowances only from September (and not with retrospective effect from January as envisaged by the commission), the actual outgo would be nearly half that.

Some analysts reckon that the consumption stimulus to the economy from the increased pay to government staff this time around could be somewhat muted.

Compared with the Sixth Pay Commission award — which led to an overall salary increase of 40% and was released first with arrears of 30 months paid over two years — the disbursement now includes only six months’ arrears in pay, they noted. “If the pay commission’s award is implemented across the board (including state governments as well as public institutions/enterprises), it would bring in an additional 0.9% of GDP growth in FY17,” said NR Bhanumurthy, professor at the National Institute of Public Finance and Policy. Even if states lag in implementing the pay revisions, Bhanumurthy said, GDP growth still could be at least 8% in the current fiscal, up from likely 7.6% last year.

Contrary to some reports that government employees could be asked to put part of the increased salary in bank capitalisation bonds to be issued by the Centre to infuse capital in the banks, officials said there was no such move. The government would like the employees to spend additional money in their hands to perk up the economy, sources added.

The seventh pay panel had projected the railways budget would bear the additional Rs.28,450 crore in FY17 due to its award. However, officials reckon that the actual requirement could be lower by about R3,800 crore for the railways due to prospective implementation of allowances.

Source: Financial Express

Steps to be followed, if OROP Arrears not paid so far

Steps to be followed, if OROP Arrears not paid so far

May be due to the non-availability of the following particulars with your bank, they have not paid. Therefore, please arrange to send the attested proof of the following particulars:-

1. Rank
2. Qualifying service.
3. Group
4. Date of Birth.

Please take a Xerox copies of the proof, get attested by your Bank’s Manager and send it to the CPPC of your bank by Registered Post immediately.

It is better if you can send the OROP arrears calculation sheet also along with the documents. For OROP calculation sheet, please click here.

Click FAQ on the Home page read the procedure for payment.

Addresses of some important banks and email addresses.

1. State Bank of India, CPPC, 112/4 Kaliamman Koil Street, Virugambakkam, Chennai 92. Email:
2. Canara Bank, CPPC, Besavangudi, Bangalore 4. Email:
3. Indian Bank, CPPC, 66 Rajaji Salai, Chennai 1. Email:
4. Indian Overseas Bank, CPPC, Annasalai, Chennai 2. Email:
5. Central Bank of India CPPc, 2nd Floor, MMO Building, MG Road, Fort, Mumbai 400001. Email:
6. Corporation Bank, CPPC, Pandeshwar, Mangladevi Temple Road, Mangalore :
7. Bank of India CPPC 87A 1st Floor,Gandhibaug, Nagpur 440002. Email;
8. Union Bank of india, CPPC, 12th Floor, 239 Vidhan Bhavan Marg, Nariman Point, Mumbai 400021. Email:
9. Bank of Baroda CPPC 13th Floor, 16 Parliament St. New delhi 1. Email:
10. Syndicate bank CPPC, 2nd Floor, Manipal Udupi, Karnataka 574104. Email:




Guidelines issued from PFRDA on processing partial withdrawal requests under National Pension System (NPS).

As per the guidelines, a subscriber can partially withdraw his/her accumulated pension wealth, not exceeding twenty-five per cent of the contributions made by the subscriber and excluding contributions made by the employer, if any, at any time before exit from NPS.

The aforesaid guidelines issued by PFRDA provide terms & conditions, purpose, frequency and limits for partial withdrawal under NPS.

Click Here to view Order (NSDL Circular Dt: 31.3.2016)

Click here to view Application Form

7th Pay Commission award after five-state polls: Finmin

7th Pay Commission award after five-state polls: Finmin

New Delhi: Official sources in Finance Ministry told us on condition of anonymity that the central government will announce 7th Pay Commission award to increase pay and facilities of the central government employees after the completion of five states assemblies’ poll process as the model code of conduct is currently in place and the employees will get it ahead of the festive season.

The announcement is to come in June-July after eight to nine months of receiving of Seventh Pay Commission report.

Sources, however, said the government had no plans to give allowances in arrears for the central government employees.

“There’s no arrears of allowances will be given to employees,” they confirmed.

When asked whether complications would arise in implementing the 7th Pay Commission’s recommendations when its implement, they said, “Secretaries group’ll not leave such vacuum.”

Sources said the Secretaries group was aimed at narrowing the gap between the salaries of officers and low paid government employees.

The group observed it was essential that the salary of top government officials should not be far to that of their low paid subordinate employees. “This will help reduce corruption by the government officials and make government jobs more attractive.”

The Seventh Pay Commission was formed on February 4, 2014 during the last UPA government.

Under Seventh Pay Commission recommendations, the take-home salary of the top boss in government service was fixed at Rs 2,50,000 while the the basic pay of the lowest-ranked employee was fixed at Rs 18,000.

Traditionally, pay commissions have been set up after every 10 years to revise the pay scales of central government employees. States also accept these recommendations for their employees after certain modifications.

Justice A K Mathur, Chairman, 7th Pay Commission presented its report to Finance Minister Arun Jaitley in November with the recommendations for 14.27 per cent increase in basic pay, the overall increase in salary, allowances and pensions is 23.55%. The increase in allowances will be higher by 63% while pensions will rise 24%.

A 13 members secretary-level Empowered Committee or Secretaries group headed by cabinet Secretary P K Sinha was formed in January to review the recommendations of 7th Pay Commission before cabinet nod.


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