Monday, 8 August 2016

Implementation of recommendations of the VII CPC – issue of Resolution by the Ministry of Finance (Deptt of Expenditure)

Implementation of recommendations of the VII CPC – issue of Resolution by the Ministry of Finance (Deptt of Expenditure)

 Government of India
Ministry of Defence

Subject : Implementation of recommendations of the VII CPC – issue of Resolution by the Ministry of Finance (Deptt of Expenditure)

Ministry of Finance has issued the Resolution dt. 25.07.2016 regarding acceptance of the recommendations of the VII CPC by the Government of India. The Resolution provides, interalia, as under

(a) The Government, after consideration, has decided to accept the recommendations of the Commission in respect of the categories of employees covered in its Terms of Reference contained in the aforesaid Resolution dated the 28th February, 2014 in the manner as specified hereinafter.

(b) The recommendations on allowances (except Dearness Allowance ) will be referred to a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members, The Committee will submit its report within a period of four months. Till a final decision on Allowances is taken based on the recommendations of this committee, all Allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st January, 2016.

(c) The Government has accepted the recommendations of the Commission on upgrading of posts except for those specified at Annexure III of the Resolutions. The recommendations on the upgradations specified at Annexure Ill will be separately examined by Department of Personnel and Training for taking a comprehensive view in the matter. These are as under:

SI. No.Name of Posts
(Para No. of 7 CPC Report)
Grade Pay recommended by 7th CPC
Upgradation other than Apex Level
1.Assistant Accounts Officer,Finance Div of Defence, MoD
48005400 (PB-2) on completionof 4 years service
Up-gradation to Apex scale
2.       Director General (Indian Coast Guard) (11.12.27)

(d) Recommendations not relating to pay, pension and allowances and other administrative issues specific to Departments/Cadres/Posts will be examined by the Ministries/Departments concerned as per the Allocation of Business Rules or Transaction of Business Rules.

(e) Anomalies committees will be set up by Department of Personnel and Training to examine individual, post-specific and cadre-specific anomalies arising out of implementation of the recommendations of the Commission.

2. The above provisions of the Resolution are brought to the knowledge of all the Administrative Division of MoD for their information and for taking necessary action in respect of the posts/cadres existing under their control. The copy of the Resolution is available for download at the website of
(Gurdeep Singh)
Under Secretary to the Govt. of India

7th Pay Commission: Millions to get better pensions

7th Pay Commission: Millions to get better pensions

New Delhi: Millions of retired central government employees will be able to get better pensions under the new pension rules have been made on 7th Pay Commission recommendations.

This new pension rules should cheer retired employees. They will get a higher pension packet and arrears from this month from exchequer with the centre issuing on Thursday the Resolution and Office Memorandums the F.No 38/37/2016-P&PW(A)(i) and the F.No.38/37/2016-P&PW(A)(ii) respectively.
The revised pensions are higher than what the get now.

Although the move benefits the cross-section of retired employees, those in higher brackets have gained more in real terms. New pensions for defence and railway personnel will be notified separately.

Older pensioners have an added reason to rejoice. Those over 80 years will get an additional 20% of their basic pension. This goes up by 30%, 40%, 50% and 100% for those over 85, 90 95, and 100 respectively.
To get an idea of the quantum of hike, a person with a basic pension of Rs 12,600 — who used to get Rs 28,350 (with Dearness allowance 125%) in hand — will now receive a total pension of Rs 32,382. The new rates are effective from January 2016 and the arrears will be given out in one installment during this month.
The maximum gratuity too has been revised to Rs 20 lakh, up from the earlier Rs 10 lakh. The ceiling on gratuity will increase by 25 per cent whenever the dearness allowance rises by 50 per cent of the basic pay.
A payment of Rs 25 lakh, from existing Rs 10 lakh, will be given to the next of kin in case of death occurring due to accidents in course of performance of duties and those attributed to acts of violence by terrorists, anti social elements etc.

  • Minimum pension Rs Rs 9,000, up from earlier Rs 7,875 (with Dearness allowance 125%) in hand (revised pension to be effective from January 1, 2016). 
  • Maximum pension Rs 1,25,000, up from Rs 1,01,250 (with Dearness allowance 125%). 
  • Maximum gratuity up to Rs 20 lakh (depending on years of service and last salary drawn). 
  • The ceiling on gratuity will increase by 25% whenever the dearness allowance rises by 50% of the basic pay. 
  • Incremental additional pension for those 80 years and above. People over 100 to get double pension.

Welfare Schemes for Working Women

Welfare Schemes for Working Women

This Ministry of Labour and Employment is administering Grant-in-aid scheme for welfare of women labour. Under the scheme financial assistance in form of Grant-in-aid is provided directly to NGOs/VOs for organizing working women and educating them about their rights and duties under various labour laws of Central/State Govt., legal aid and organizing seminars/workshop etc. aimed at raising the general consciousness of women labour.

The details of funds allocated and released during the last three years and the current year are -

YearAmount sanctionedAmount Released
2013-14Rs. 75 lakhRs. 13.39 lakh
2014-15Rs 20 lakhRs.16.54 lakh
2015-16Rs.22.51 LakhRs.22.51 lakh
2016-17Rs. 20 lakhNo funds has been released as on 04.08.2016.

Besides, Government is implementing various welfare schemes for providing medical, educational, housing facilities and social security to the workers, including women, employed in Beedi making & Mines. Under the prevalent medical scheme, female beedi workers are granted Rs. 1,000/- per delivery for first two deliveries and an amount of Rs. 5000/- is provided as financial assistance to the widow/widower beedi worker for meeting the wedding expenses of their first two daughters.

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.


A miserable 2 per cent – ARTICLE BY SRI. VINODH RAI ON 7TH CPC

A miserable 2 per cent – ARTICLE BY SRI. VINODH RAI ON 7TH CPC

Former comptroller and auditor general, Rai is chairman of Banks Board Bureau.

On June 30, headlines across newspapers were on the Union government having approved the Seventh Pay Commission recommendations. The Economic Times headline read, “Central staff hit pay dirt: An early Diwali”. The newspaper said the government had accepted the recommendations doling out ‘hefty’ pay hikes. The salaries were expected to increase in the range of 14 per cent to 23 per cent. The bold fonts also announced that the lowest salary was to increase from Rs 7,000 per month to Rs 18,000. The highest salary, received by the cabinet secretary, was to go up to Rs 2,50,000 from Rs 90,000.

Sounds huge, does it not? But we need to analyse this. What is the bonanza and what are the hefty pay hikes which are speculated to be “fuelling inflationary pressures”?

Actually, the salary of Rs 7,000 and Rs 18,000 are not comparable. The equivalent of the Rs 7,000 basic salary, which was fixed 10 years ago and currently applicable with the dearness allowance added on, is Rs 15,750 (Rs 7,000 basic plus 125 per cent DA). In the salary of Rs 18,000 now announced, the DA is subsumed. Thus, a more accurate comparison would be the present salary of Rs 15,750 and the new salary of Rs 18,000. Similarly, the cabinet secretary at present receives Rs 2,02,500. The newspapers also announced that the total outgo as a consequence of the hike was expected to be Rs 1 lakh crore.

The comments on social media are more expressive! They question whether government employees actually deserve higher salaries: “Being paid more for what?”, “More pay for less and less work”, and “Babus don’t deserve a hike.” In fact, it is speculated that these increases will fuel inflation. Another school of thought believes that it will kickstart spending, thus generate demand and hence increased economic activity.

The Pay Commission is announced once in ten years. Thus any increase in basic salary comes about once in ten years. Even if we were to assume that this Pay Commission has brought about a hike of 20 per cent, it would tantamount to a simple rate of 2 per cent per annum. Which employee in the private sector would be content with a 2 per cent per annum hike? A couple of years ago, I was pleasantly surprised to hear of the bonus received by one of the youngsters in the family. I found that his annual bonus alone was more than the sum of the total salary earned by me over my entire career! He could afford at least two vacations abroad for himself and his kids every year, travelling business class. My wife and I have never been on any vacation as yet. At most, every year we visited our parents using up my earned leave or she would accompany me if I travelled on work. For him the weekend is a total break from work—he gets no official calls over the weekend. Mine was a 24×7 job when I could not refuse anyone who called me. Once when my wife reminded the caller that he had called on a holiday, he had the gumption to remind her that official phones were given to government functionaries so that they could be contacted all the time!

There is then the fear that the pay increase will cause financial difficulties to state governments. True, it will. However, prudent financial management requires constant mobilisation of resources. However, considering the fact that we have just about an election every year, to local bodies or state legislatures or the general election, very few governments can take appropriate measures to increase taxes or tap methods to raise resources. If you cannot take harsh decisions to raise resources, why blame government employees who get a paltry increase of 2 per cent per annum?

I acknowledge that government employees are not the most popular guys. To a large extent, we are to blame for this. This perception needs to be addressed and only we can do that with our own endeavours and actions. However, if the general public still continues to grudge the paltry increase, they must realise that if you pay peanuts you get only ……….!

Revision of pension for PBOR discharged prior to 01.01.2006 - PBOR TABLES

PBOR Tables – Amendment in Tabel No.59, 60 and Table No.10

No.1(8)/2015/D (Pen/Pol)
Government Of India
Ministry Of Defence
Department of Ex-servicemen Welfare

New Delhi, Dated 1st August 2016
The chief of the Army Staff
The chief of the Naval staff
The chief of the Air Staff

Subject: Implementation of the Government decision on the recommendations of the cabinet secretary’s Committee- Revision of Pension in Respect of Personnel Below Officer Rank (PBOR) Discharged prior to 01.01.2006.

Tables attached to this Ministry’s letter Nos.1(13)/2012/D (Pen/Policy) dated 17.01.2013 and No.PC 10(1)/2009-d (Pen/Pol) dated 08.03.2010 are amended as follows:

1. In the Table No.59 and 60 of GoI MoD letter No.PC 10(1)/2009-D (Pen/pol) dated 08.03.2010, following additions shall be made in column No.(S) indicated below:

2. similarly, in Table No.10 of GoI MoD letter No.1(13)/2012/d(Pen/Policy) dated 17.01.2013, following additions shall be made in column No.(s) indicated below:

3. All other terms and conditions shall remain unchanged

4. The above amendments shall take effect from date of implementation of their respective orders. Arrears in affected cases shall be released by pension Disbursing Agencies.

5. This issues with the concurrence of the Finance Division of this Ministry vide their UO No.10(14)/2015/fin/Pen dated 22-07-2016.
Hindi version will follow.
Yours faithfully
(Manoj Sinha)
Under Secretary to the Government Of India
Authority :

7th Pay Commission: Retired central govt employees to get minimum pension Rs 9,000

7th Pay Commission: Retired central govt employees to get minimum pension Rs 9,000

New Delhi: Retired central government employees will now get a minimum pension of Rs 9,000, up 157.14 per cent from the current Rs 3,500, following the implementation of the 7th Pay Commission’s recommendations.

The Department of Pension and Pensioners’ Welfare under the Ministry of Personnel, Public Grievances and Pensions has issued on Thursday the Resolution and Office Memorandums the F.No 38/37/2016-P&PW(A)(i) and the F.No.38/37/2016-P&PW(A)(ii) respectively on account of acceptance of 7th Pay Commission’s recommendations for the pensioners.

The ceiling of gratuity has also been enhanced from the existing Rs 10 lakh to Rs 20 lakh. The Commission had also recommended the ceiling on gratuity to be raised by 25 per cent whenever Dearness Allowance rises by 50 per cent, a proposal which has been accepted by the government.

There are about 58 lakh central government pensioners.

The amount of pension shall be subject to a minimum of Rs 9,000 and the maximum pension would be Rs 1,25,000–which is 50 per cent of the highest pay in the government, an order issued by the Ministry said.

The highest pay in the government is Rs 2,50,000 with effect from January 1, 2016.

The maximum limit of retirement gratuity and death gratuity shall be Rs 20 lakh, the order said. The ceiling on gratuity will increase by 25 per cent whenever the dearness allowance rises by 50 per cent of the basic pay, it said.

There has been a substantial increase in payment of ex-gratia lump sum compensation for civil and defence forces personnel, payable to the next of kin.

A payment of Rs 25 lakh, from existing Rs 10 lakh, will be given in case of death occurring due to accidents in course of performance of duties and those attributed to acts of violence by terrorists, anti social elements etc.

Inputs with PTI

Productivity-Linked Bonus to Railwaymen for the year 2015-16

Productivity-Linked Bonus to Railwaymen for the year 2015-16


No.AIRF/387 Dated: August 3, 2016
The Secretary(E),
Railway Board,
New Delhi Kind Attn: Shri Dhruv Singh, EDPC-I, Railway Board

Dear Sir,
Sub: Productivity-Linked Bonus to Railwaymen for the year 2015-16

In reference to our discussion with the Additional Member (Staff), Railway Board, on 2nd August, 2016, we have explained threadbare about the modalities and norms fixed for the Productivity-Linked Bonus to railwaymen for the year 2015-16.

It is a well-known fact that, the formula envisaged for calculation of number of days for PLB in November 1979 has been sacrosanct and the federations had never agreed for any alteration in that formula.

Railway Board is quite aware that the railwaymen are putting their best efforts for running Indian Railways System smoothly and efficiently 365X24X7 days even by laying their precious lives, therefore, any alteration with PLB Formula, which reduces the number of days, will demotivate them and will be proved counter-productive to the interests of the Indian Railways. Though the number of railwaymen is being reduced, they are carrying more number of passenger and freight trains, therefore, it is quite evident that, productivity of the railwaymen has increased to a great extent.

AIRF has already explained that, any reduction in the number of days of PLB in comparison to last year will never be tolerated, and that can lead to further agitations.

Here it is pertinent to mention that, every time when the government changed, ceiling of the PLB also changed in the Railways. Last time (in 2009-10) when PLB ceiling was changed from Rs.2500 to 3500 p.m., railwaymen were paid PLB along with the arrear. Similarly, we expect that, this time also, since PLB ceiling has been enhanced from Rs.3500 to Rs.7000 p.m., railwaymen will be paid PLB @ Rs.7000 p.m. along with arrear.

Yours faithfully
(Shiva Gopal Mishra)
General Secretary

Source : AIRF

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