Monday, 1 August 2016

Ceiling for Pensionable Salary

Ceiling for Pensionable Salary

As per Para 12(1) of the Employees’ Pension Scheme (EPS), 1995, a member shall be entitled to:

(a) Superannuation pension if he has rendered eligible service of 10 years or more and retired on attaining the age of 58 years.

(b) Early pension, if he has rendered eligible service of 10 years or more and retired or otherwise ceases to be in the employment before attaining the age of 58 years.

In such cases, the amount of pension shall be reduced at the rate of 4 per cent for every year the age falls short of 58 years.

This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha today.

PIB

7th CPC DA calculation should give same benefit of Sixth CPC

7th CPC DA calculation should give same benefit of Sixth CPC

An interesting point is raised by Mr. Alpesh on 7th CPC DA calculation as it is not giving the DA benefit we supposed to get from sixth CPC

A Comparison of current DA vs 7th Pay Commission DA

As per this current DA calculator

6th pay DA would be 7% and

7th pay DA is 2% from July onwards.

Now if we see this figures logically there is great disappointment. We actually can’t get 7th pay DA hike at least same as currently available system of 6th pay DA hike.
7th pay commission has raised basic pay with Multiplication factor 2.57.
Then logically DA revision pattern would also be such as which at least should maintain equivalency of 2.57 factor.

For example…

If one’s Basic pay in 6th CPC is Rs. 20000, So with fitment factor of 2.57 his Basic Pay in 7th pay will be 51400.

So as per DA calculator, 7% DA rise on 6th CPC Basic Pay will be Rs.1400.

2% DA rise on 7th CPC Basic Pay will be 1028.

So current applicable DA system is clearly failing to maintain the parity between 6th pay and 7th pay consideration.
In order to achieve this balance either DA Calculation system or 7th pay fitment factor should be amended.
Suppose if we think fitment factor should be amended to maintain the parity in DA Rates between Sixth and 7th CPC, then the should be such basic to be fixed so as give its 2% value as Rs. 1400.

Thus, the 7th CPC Basic Pay to be revised as Rs. 70000 instead of Rs. 51400.

And to arrive 70000 as basic Pay, the fitment factor should be revised to 3.5…!!!
If this issue is not considered timely then employee will suffer for upcoming 10 years.

Pradhan Mantri Rojgar Protsahan Yojana

Pradhan Mantri Rojgar Protsahan Yojana

A new scheme “Pradhan Mantri Rojgar Protsahan Yojana”(PMRPY) has been announced in the Budget for 2016-17 with the objective of promoting employment generation and an allocation of Rs. 1000 crores has been made. The scheme is being implemented by the Ministry of Labour and Employment in 2016-17. Under the scheme employers would be provided an incentive for enhancing employment by reimbursement of the 8.33% EPS contribution made by the employer in respect of new employment.

The PMRPY scheme is targeted for workers earning wages upto Rs. 15,000/- per month. Publicity and awareness campaign is an integral component of the PMRPY scheme for encouraging employers including Micro, Small and Medium Enterprises (MSMEs) to avail benefits.

This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha today.


PIB

7th pay commission arrears not to push up car, house sales

7th pay commission arrears not to push up car, house sales

New Delhi: Car and house sales are not expected to go up after giving the seven months’ arrears of the 7th Pay Commission recommendations to central government employees on August 31.

As per the notification and resolution, central government employees will receive an average 14.27 per cent hike in basic pay effective from January 1, 2016.

The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

The hype around the 7th Pay Commission recommendations is completely unnecessary, as the real impact is going to be much lesser both in absolute and relative terms compared with the previous 6th Pay Commission. As such, the employees can’t spend more to buy a car or a house.

7th pay commission arrears, its nothing more than peanut for lower and middle level employees. A middle level employee will take home the 7th pay commission arrears that may range from Rs 40,000 to Rs 80,000 on August 31.

How can he purchase a car? With the take arrears salary of Rs 40,000, getting a car loan of Rs 4 lakh is a big deal for an employee. The employee has to bring in margin money to the tune of 15 per cent to 30 per cent of the loan amount, depending on banks.

So, an employee, who is to get arrears Rs 40,000, he will have to pay Rs 80,000, the margin amount for a car loan, which is 20 per cent of a car of Rs 4 lakh. It seems impossible for him to pay the margin money upfront.

Over 80 percent central government employees are working in middle and lower level rungs.

So, bankers say that the 7th pay commission arrears effect on retail lending will be a little.

The last such comprehensive hike in salaries did lead to a sharp increase in consumer spending. House, car and two-wheeler sales, for instance, recorded a sharp surge shortly after the sixth pay panel payouts.

The sixth pay commission report was submitted in 2008, with the higher salaries coming into effect retrospectively from January 1, 2006.

It entitled government employees to huge arrears, a part of which was spent on margin money for buying cars and houses.

The Finance ministry Office Memorandum No.1-5/2016-IC said on Friday, “The 7th Pay Commission arrears shall be paid in cash in one installment along with the payment of salary for the month of August 2016.”

Accordingly, The government’s overall arrears payout will be lower because of only seven months arrears this time, compared to the previous pay commission, which came in late.

It may be recalled that a month ago, Finance Minister Arun Jaitley had “congratulated” central government employees after the Union Cabinet accorded its approval to the 7th pay commission recommendations.

TST

Delegation of powers to Financial Advisers of administrative Ministry/ Department to accord exemption for air travel in airlines other than Mr India in individual cases of autonomous bodies

Delegation of powers to Financial Advisers of administrative Ministry/ Department to accord exemption for air travel in airlines other than Mr India in individual cases of autonomous bodies— reg.

No. 19024/1/2009E.IV
Government of India
Ministry of Finance
Department of Expenditure
***
New Delhi, dated the 26th July, 2016
Office Memorandum

Sub:-Delegation of powers to Financial Advisers of administrative Ministry/ Department to accord exemption for air travel in airlines other than Mr India in individual cases of autonomous bodies— reg.

Reference is invited to Para ‘2’ of Department of Expenditure’s 0.M. of even number dated 07.06.2016, which provides that powers, which were vested with Ministry of Civil Aviation to accord exemption for Air travel, both domestic and international, by Airlines other than Air India because of operational or other reasons or on account of non-availability, have been delegated to the Financial Advisors (FA) of the administrative Ministries/Departments and that in respect of the individual cases of Autonomous bodies, the FAs of the concerned Ministry/Department will accord exemption for Air travel by Airlines other than Air India.

2. Several references are being received in this Department seeking further delegation of powers to FAs of Autonomous bodies/statutory organisations, to accord approval to travel in any Airlines other than Air India, in individual cases covering that Autonomous body/statutory organisation.

3. It is hereby clarified that the powers to accord exemption for air travel by airlines other than Air India, including individual cases of Autonomous bodies, are vested only in the Financial Advisers of the Ministries/Departments, exercising administrative control over the Autonomous body/statutory organisation and that these powers cannot be further delegated to FAs of the Autonomous body/statutory organisation under the administrative control of the Ministry/Department concerned.

(Nirmala Dev)
Deputy Secretary to the Government of India

Payment of Overtime, Piece Work Earning & Incentive Bonus on Implementation of instructions of 7th CPC recommendations:BPMS

Payment of Overtime, Piece Work Earning & Incentive Bonus on Implementation of instructions of 7th CPC recommendations:BPMS

BHARTIYA PRATIRAKSHA MAZDOOR SANGH
Ref: BPMS /OFB / OTA / 43 A (7/2/R)
Dated: 30.07.2016
To,
The DGOF & Chairman,
Ordnance Factory Board,
10-A, S. K. Bose Road,
Kolkata – 700001

Kind Attention: (Shri S K Singh, Director/IR, OFB)

Subject: Payment of Overtime, Piece Work Earning & Incentive Bonus on Implementation of instructions of 7th CPC recommendations regarding.

Respected Sir,
With due regards, I would like to invite your kind attention to the Section 59 of Factories Act, 1948, which states that a worker shall be entitled to wages at the rate of twice of his ordinary rate of wages, in respect of Overtime work and as per Sub Section (2) of Section 59 the ‘ordinary rate of wages’ means the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional rate to workers of food grains and other articles, as the worker is for the time being entitled to but does not include a bonus and wages for overtime work.

Now, Govt of India, Min of Finance (Department of Expenditure) has passed & adopted the Resolution (No. 1-2/2016-IC, Dated 25.07.2016) regarding 07th CPC recommendations on revised pay structure with effect from 01.01.2016.

Hence, all the industrial & non-industrial employees of Ordnance & Ordnance Equipment Factories, who are deputed on overtime, have become eligible for payment of overtime allowance on the revised pay under the CCS (Revised Pay) Rules, 2016 in compliance of statutory order of Section 59 of the Factories Act, 1948.
It is worth to mention here that regarding fixation of pay and payment of arrears, instructions have been issued vide Implementation Cell, 7th CPC O.M. No. 1-5/2016-IC, Dated 29.07.2016.

Therefore, you are requested to issue necessary directives for the payment of overtime allowance on the revised pay of 7th CPC and also to co-relate the piece work & incentive accordingly.

Thanking you
Sincerely Yours
(M P SINGH)
General Secretary
Source: http://bpms.org.in/documents/overtime-revision-mqvg.pdf

Banks to launch new loan schemes to grab pay commission arrears

Banks to launch new loan schemes to grab pay commission arrears

Banks-to-launch-schemes-to-grab-arrears

New Delhi: State Bank of India, the country’s largest lender, and its rivals are set to launch programmes aimed at encouraging central government employees in line for fatter 7th pay commission arrears to borrow and spend on consumer goods, cars and homes.

The government announced its employees would get the higher salaries from August along with arrears of the first seven months under the Finance ministry Office Memorandum No.1-5/2016-IC issued on Friday. The pay commission award is due from January 1.

Punjab National is also firming up plans to tap salary increases to the tune of a total Rs 70,000 crore through this financial year thanks to the award of the Seventh Central Pay Commission.

State-owned SBI will raise the age bar on loan repayments by five years in the two schemes it’s planning. It will also offer lower interest rates and the flexibility of paying higher installments in the first few years.

“We will launch SBI Privilege to suit the needs of the borrowers who will be benefiting from the pay commission,” SBI managing director Rajnish Kumar told The Economic Times. “This new scheme will allow home loan borrowers to service loans till the age of 75 from the existing age of 70 years besides a five basis point reduction in interest rates if they repay through check-off facility (or payments deducted directly from the salary).” A basis point is 0.01 percentage point.

Another progamme, SBI Shaurya, is aimed at defence personnel, who are also in line for pay and pension increases.

“We expect that the major demand will be from personal loans and car loans,” a Bank of Baroda executive told The Economic Times. “We will be soon be coming out with interesting offers on these two product lines.”

After the sixth pay commission award in 2008, the sales of two wheelers and passenger cars rose 25%. Analysts expect a similar bump, though not as sharp, this time around.

The increase in salary this time is an average 15% compared with 40% last time. Plus, last time the arrears were for two years, resulting in a bigger surge.

Inputs with ET

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