Tuesday, 9 August 2016

Pay Fixation on Promotion or MACP in 7th CPC – Option Calculation with illustrations

Pay Fixation on Promotion or MACP in 7th CPC – Option Calculation with illustrations

7th CPC Promotion Option Calculation

All the central government employees are in busy with calculating which Option is beneficial to them in order to get full benefit from 7th CPC Revised pay .

Actually there is no dilemma for CG employees those who didn’t get any Promotion/MACP from 1st January to 1st July 2016. There are some cases in this category that choosing Option to revise Pay from Date of Next Increment gives more benefit than opting 1.1.2016 to revise 7th CPC Pay .
The government servants those who got Promotion / MACP in the Period from 2nd January to 1st July are finding it difficult to decide which Option is correct and More beneficial to them. No body in the administrative Department ready to guide the right way to the Government servants since there is no clarity in 7th CPC in respect of Revising/Fixing pay on Promotion Date. But It was clearly illustrated in Sixth CPC.

Let us workout the Pay Fixation in different Options to revise pay in 7th CPC to understand which Option is Beneficial in Longer run.

Let us take an example,
Assume a government servant has been promoted to Next Grade to 2800 on any date between 2nd January 2016 to 1st July 2016. Let us take 1st march 2016 was his date of Promotion.
His existing pay as on 1.1.2016 = Band Pay of 9100 + Grade pay of 2400 = 11500

If He Choose Option -I to revise his Pay from 1.1.2016

macp-7thCPC-2


b) Fixation for Option to revise Pay on Promotion Date need to be Clarified by Government
Since there is no Grade pay involved in 7th CPC, Adding Grade Pay difference on Promotion date is not applicable in 7th Pay Commission for this category.

macp-7thCPC-2
 

Which Option is More beneficial ..?

From the above calculation, it shows that Selecting Option -II to revise Pay with effect from Date of Next Increment i.e 1st July 2016 is more beneficial than Option-I.

It may differ to individual to individual based on Grade Pay and no of increments earned in that Particular Grade.

The Impact of Selecting Option -II in the above case

a. Pay revision come into force with effect from 1st July 2016,
b. You have to travel in Sixth CPC Pay up to 30th June 2016
c. So There will be no arrears for the Period from January 2016 to June 2016


Source: http://7thpaycommissionnews.in/

7th Pay Commission: Cabinet to decide on allowances, says FM Jaitley

7th Pay Commission: Cabinet to decide on allowances, says FM Jaitley

New Delhi: The Union Cabinet will take a decision on the suggestions of a special committee which has been set up to look into the provision of allowances under the 7th Central Pay Commission recommendations, Finance Minister Arun Jaitley said Tuesday.

Replying to a question on the pay commission in Rajya Sabha, the minister said the government has decided that the recommendations on allowances, other than dearness allowance, will be examined by a committee headed by Finance Secretary as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare among others as its members.

The committee, which was constituted on July 22, has been asked to submit its report within four months. Its first meeting took place on August 4.

“As far as allowances are concerned, 51 have been abolished while 37 have been subsumed. As the measures are radical in nature, even the employees’ unions have given their suggestions in the matter and therefore a special committee has been formed to look into it. Whatever the committee decides, it will go to the Cabinet,” Jaitley said.

The matters relating to pay and pension as decided by the government have been implemented with effect from January one this year.

Replying to a related question, Jaitley said it was the responsibility of the state governments to pay the salaries of their employees from their internal resources.

“So they will have to manage it from their own resources,” he said.

Digvijaya Singh (Congress) said the banking industry was in a crisis and lakhs and crores of rupes have gone into NPAs, willfull defaulters’ list and restructured loans.

So in this changed scenario, was the government planning to amend the section 45(E) of RBI Act 1934 which prohibits disclosing credit information, he asked.

“Transparency is a very popular word and it is being accepted all over the world. With transparency and with the coming of RTI Act, even then in some matters it is balanced with commercial confidentiality..There are some laws which are there since long time like the Income Tax..

“Therefore, the government will have to work under the framework of these laws. Currently, the government has no proposal to change this provision,” Jaitley said.

As per 45(E) of RBI Act 1934, RBI is prohibited from disclosing credit information except under certain conditions.
Jaitley said the RBI gives detailed guidelines to banks on how to deal with the non-performing assets, stressed assets and how restructuring could be done.

To a question from KTS Tulsi, Jaitley said “trading and industrial advances” amount for larger NPAs in the country.

“As far as different sectors are concerned, there has been an experience that in case of smaller loans the level of NPAs have been much lesser. For example in the macro financing etc, the recoveries are to the extent of 99 per cent and therefore NPAs are much lesser. The higher NPAs are really in relation to much larger trading and industrial advances,” he said.

As of March 31, the gross NPAs of public sector banks stood at Rs 4.76 lakh crore, Jaitley said.
On hearing this, Tulsi said “that’s why farmers are killing themselves.”

Jaitley said the “farmers were killing themselves because the prices are not remunerative, the cost of cultivation has gone up and they are not able to pay off debts. This is the principle reason why the farm sector was in distress”.

Replying to a separate question, Jaitley said RBI had ordered an asset quality review of entire banking system which has been done on basis of which NPAs are now openly stated.

“And that is why in each quarterly asessment a provision is being made by classifying the NPAs as NPAs which was otherwise not being done. Therefore the accounts and balancesheets are now being cleaned up under the asset quality review which is being undertaken,” he said.

Source : zeenews

Fixation of Pay on MACP as per CCS(RP) rules 2016 in 7th CPC Scales- 3 Options with Illustrations

Fixation of Pay on MACP as per CCS(RP) rules 2016 in 7th CPC Scales- 3 Options with Illustrations

For illustration purpose date of 2nd financial up-gradation under MACPS of a PA is taken as 18.1.2016
(i)Pre-revised Basic Pay as per VI CPC
Scale on 1.1.2016 (13950 + 2800 G.P)
16750/-
(ii)Granted 2nd MACP financial up-gradation on 18.1.2016 & Basic pay as per  (13950 + 4200 G.P)
VI CPC Scales on 18.1.2016 (Opted to fix pay from DNI on 1.7.2016)
18150/-
(iii)Basic pay as per VI CPC Scales on 1.7.2016(14980 + 4200 G.P)
(Pay Fixation done 2ndMACP financial up-gradation in VI CPC Scales)
19180/-

Pay Fixation (in 3 different options exercise as per Rule 5 of CCS(RP) Rules, 2016) in 7th CPC Scales :-

 (a)    If Option exercised to switch over to 7th CPC scales from 1.1.2016:-

1Pre-revised Basic Pay as on 01.01.201616750/- [ 13950 + 2800 G.P]
2Applicable level in pay matrix5
3Amount at Col.3 above arrived by multiplying by 2.5743047.50 say 43048/-
4Applicable cell level either equal to (OR) just above the figure arrived at Col.544100
5Revised Basic Pay on 1.1.2016 in 7thCPC Pay Matrix Level44100
6Pay fixation on account of 2nd MACP financial up-gradation granted w.e.f. 18.1.2016 as per Rule 13 of CCS (RP) Rules, 201646200/- (Level 6 in Pay Matrix)
7DNI as per Rule 9 of CCS (RP) Rules, 20161.1.2017 to the stage of Rs.47600/-
8Eligibility of Arrears = Arrears eligible from 1.1.2016 onwards.

(b)    If option exercise to switch over to 7th CPC scales from the Date of Next Increment in Pre-revised pay structure i.e. on 1.7.2016: –

1Pre-revised Basic Pay as on 01.01.201616750/- [13950 + 2800 G.P]
2Pau drawn in pre-revised pay structure i.e. VI CPC Scales on account of 2ndMACP financial up-gradation   w.e.f. 18.1.201613950 + 4200 (G.P) = 18150/-
3Pay fixation done on 1.7.2016 in pre-revised pay structure i.e. VI CPC Scales on account of 2nd MACP financial up-gradation granted from 18.1.201614980 + 4200 (G.P) = 19180/-
4Applicable level in Pay Matrix for Rs.4200/- G.P. (Pay Band – 2)6
5Amount an Col.3 above arrived by multiplying by 2.5749292.60 say Rs.49293/-
6Applicable Cell level either equal to (or) just above the figure arrived at Col.550500/- (level 6 of Pay Matrix)
7Revised Basic Pay on 1.7.2016 in 7thCPC Pay Matrix Level50500/-
8DNI as per Rule 9 of CCS(RP) Rules, 20161.7.2017 to the stage of Rs.52000/-
9Eligibility of arrears = Arrears from 1.1.2016 to 30.6.2016 are to forego. Arrears are eligible from 1.7.2016 onwards

(C)     If Option exercised to switch over to 7th CPC scales from the Date of Promotion/Financial up-gradation under MACPS i.e. on 18.1.2016:-

1Pre – Revised Basic Pay as on 01.01.201616750/-  [ 13950 + 2800 (G.P)
2Pay drawn in Pre-revised pay structure i.e. VI CPC scales on Account of 2ndMACP financial up-gradation w.e.f. 18.1.201613950 + 4200 (G.P) = 18150/-
[ Option already exercised for fixation in old pay scales from DNI on 1.7.16 cannot be revised now ]
3Applicable level in Pay Matrix for Rs.4200/- G.P(Pay Band – 2)6
4Amount at Col.2 above arrived by multiplying by 2.5746645.50 Say Rs.46646/-
5Applicable cell level either equal to (Or) just above the figure arrived at Col.447600/- (Level 6 of Pay Matrix)
6Revised Basic Pay on 18.1.2016 in 7thCPC Pay Matrix Level47600/-
7DNI as per Rule 9 of CCS (RP) Rules, 20161.1.2017 to the stage of Rs.49000/-
8Eligibility of Arrears.  = Arrears from 1.1.2016 to 17.1.2016 are to forego. Arrears are eligible from 18.1.2016 onwards.

Note: Exercising Option to switch over to 7th CPC Scales from the date of next increment in pre-revised pay structure i.e. on 1.7.2016 would be beneficial [ i.e. 1st proviso to Rule 5 of CCS (RP)Rules, 2016] by forgoing arrears from 1.1.2016 to 30.6.2016.
This article shared byShri. G. Nagaraju,
Accountant,
O/o SPOs, Sangareddy Division
Source: http://sapost.blogspot.in/

Implementation of the recommendations of 7th CPC – Fitment Factor and Pay Fixation for Running Staff

Implementation of the recommendations of 7th CPC – Fitment Factor and Pay Fixation for Running Staff
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/NFIR/7CPC(Imp)/2016/R.B.
Dated: 04/08/2016
The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub: Implementation of the recommendations of 7th CPC – Fitment Factor and Pay Fixation for Running Staff-reg.

Ref: (i)NFIR’s letter No. IV/NFIR/7CPC(Imp)/2016/R.B. dated 13/07/2016.
(ii) Board’s letter No. PC-VII/2016/RSRP/2 dated 02/0811016 (RBE No. 93/2016).

The Federation vide its letter dated 13/07/2016 requested the Railway Board that in view of 30% pay element of Running Staff needed to be taken for arriving at the “multiplier factor”, it was suggested to maintain the same at “3” instead of “2.57”. Federation is however disappointed to note that the Railway Board instead of following the simple procedure has complicated and mutilated the pay fixation formula/procedure of Running Staff as per illustration given in Annexure ‘C’ of Board’s letter No. PC-VII/2016/RSRP/2 dated 02/08/2016 (RBE No. 93/2016).

In this connection, the Federation brings to the notice of the Railway Board that in the Resolution circulated by the Ministry of Finance (Department of Expenditure) vide No. 1-2/2016-IC on 25th July 2016 in Para 12, it has been mentioned that in respect of Railway employees to whom Running Allowance is admissible, it will be ensured that the actual rise in pay at the time of initial fixation is about 14.29% as recommended by the Pay Commission. Federation feels sad to convey that the said decision of the Ministry of Finance has not been complied with by the Railway Ministry particularly in respect of Running Staff.

In case of Running Staff with Rs.1000/- Basic Pay, he will get Dearness Allowance Rs.1,625/-, thus, the total would be Rs.2,625/-. In terms of Gazette Para 12, minimum benefit 14.29% should be given to Running Staff. 14.29% of Rs.2,625/- is Rs.375/-. Thus Basic Pay + Dearness Allowance + Minimum Guaranteed Benefit = 1000 + 1625 + 375 = Rs.3,000/-. From this, it is clear that the Running Staff having Basic Pay of Rs.1000/- should be fixed at Rs.3000/-. But in the illustration given in RBE 93/2016, Running Staff with Basic Pay of Rs.19,930/- is fixed at Rs.58,694/-, which works out 12.19% which is clear violation of Para 12 of Gazette Notification.

In view of the above, the Annexure of Board’s letter dated 02/08/2016 is needed to be redrawn to ensure justice to the Running Staff. NFIR, therefore, requests the Railway Board to consider the above points and issue modification immediately duly endorsing copy to the Federation.
Yours faithfully,
sd/-
(Dr. M. Raghavaiah)
General Secretary
Source : NFIR

7th CPC – Minimum Pension of Rs.9000 for Central Government Pensioner

7th CPC – Minimum Pension of Rs.9000 for Central Government Pensioner

The Ministry of Personnel, Public Grievances and Pensions has released the office memorandum F.No.38/37/2016-P&PW(A)(ii) dated 4th August 2016 of the 7th pay panel’s recommendations for the pensioners. As per the 7th Pay Commission Pension Order, the retired central government employees will now get a minimum pension of Rs 9,000, from the current Rs 3,500.

As per Office Memorandum, para 4.4

“4.4. The minimum pension with effect from 01.01.2016 will be Rs. 9000/- per month (excluding the element of additional pension to old pensioners). The upper ceiling on pension/family pension will be 50% and 30% respectively of the highest pay in the Government (The highest pay in the Government is Rs. 2,50,000 with effect from 01.01.2016).”

Also refer para 5 in the above said OM

“5. Where the revised pension /family pension in terms of paragraph 4.1 above works out to an amount less than Rs. 9000/-, the same shall be stepped up to Rs. 9000/-. This will be regarded as pension/family pension with effect from 1.1.2016.”
So, the Minimum pension will be Rs. 9000/- and maximum pension will be 2,50,000 with effect from 01.01.2016.

Multiplication Factor:

Basic pension shall be multiplied by 2.57 As per para 4.1 in the above said order,
“4.1 For existing pensioners, who have retired before 01.01.2016, the revised pension/family pension with effect from 01.01.2016 shall be determined by multiplying the pension/family pension, as had been fixed at the time of implementation of 6th Central Pay Commission (CPC) recommendations, by 2.57. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.”

Source : govtstaffnewsportal.in

Restoration of 1/3rd commuted portion of pension

Restoration of 1/3rd commuted portion of pension

No.4/38/2008-P&PW (D)
Government of India
Ministry of Personnel, Public Grievances & Pensions
(Department of Pension & Pensioners Welfare)

3rd Floor, Lok Nayak Bhawan
New Delhi-110 003.
Dated the 4th August, 2016

OFFICE MEMORANDUM

Subject-Restoration of 1/3rd commuted portion of pension in respect of Government servants who had drawn lumpsum payment on absorpt ion in Central Public Sector Undertakings/Central Autonomous Bodies – Stepping up of notional full pension w.e.f . 1.01.2006 for the purpose of Dearness relief and additional pension for old pensioners.

Orders for revision of 1/3rd restored pension of absorbees , who had drawn lumpsum payment on absorption, were issued vide this Department O.M. of even number dated 15.9.2008 as amended/ modified vide OM No.4/30/201 0-P&PW(D) dated 11.07.2013. As per these memorandums, the full pension of the absorbees was notionally revised w.e.f . 1.1.2006 in accordance with the instructions contained in this Department O.M. No.38/37/08-P&PW(A) dated 1.9.2008. The payment of DR and additional pension to old pensioners is regulated on the basis of the notional full pension.

2. Instructions were issued vide this Department’s OM No.38/37/08- P&PW(A) dated 28.1.2013 for stepping up of the pension of pre-2006 pensioners w.e.f . 24.9.2012 . Accordingly, the notional full pension of the absorbee pensioners was also stepped up w .e.f 24.09.2012 in accordance with the instructions contained in the aforesaid OM dated 28.1.2013 vide this Department’s OM of even number dated 03.04.2013.

3. Instructions were issued vide this Department’s OM No 38/37/08- P&PW(A) dated 30.07.2015 for revision of pension/ family pension of all pre- 2006 pensioners/ family pensioners in accordance with this Department’s OM dated 28.01.2013 with effect from 1.01.2006 instead of 24.09 .2012 . Accordingly , the notional full pension of absorbee pensioners was also revised in accordance with the instructions contained in aforesaid OM dated 30.07.2015 w.e.f. 1.01.2006 instead of 24.09.2012 for purpose of payment of dearness relief and additional pension for old pensioners vide this Department’s OM of even no. Dated 17.02.2016.

4. Instructions have now been issued vide this Department’s OM No. 38/37/08 P&PW(A) dated 6.04.2016 that the revised consolidated pension of pre-2006 pensioners shall not be lower than 50% of the minimum of the pay in the Pay Band and the grade pay (wherever applicable) corresponding to the pre-revised pay scale as per fitment table without pro-rata reduction of pension even if they had qualifying service of less than 33 years at the time of retirement. Accordingly , the notional full pension of absorbee pensioners would also be revised in accordance with the instructions contained in aforesaid OM dated 6.04.2016 w.e.f. 1.01.2006 and dearness relief and additional pension for old pensioners would be admissible on such notional revised full pension . There will, however , be no change in the actual 1/3rd restored pension determined in accordance with the OM dated 15.09.2008 read with OM dated 11.07.2013.

5. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their I.D. No.1(5)/E.V/2012 dated 4.07.2016.
sd/-
(Harjit Singh)
Director
Source: NFIR

Correction in para 228 of Indian Railway Establishment Manual, Volume -I (Revised Edition1989) Edition -2009 Erroneous Promotions

Correction in para 228 of Indian Railway Establishment Manual, Volume -I (Revised Edition1989) Edition -2009 Erroneous Promotions

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAIL WAY BOARD)

RBE NO. 86 12016
2016/CR/IREM Volume-I/Corrigendum
New Delhi, dated 19.7.2016
The General Managers (P)
All Indian Rail ways &
Production Units etc.
(As per standard list)
CORRIGENDUM

Sub:- Correction in para 228 of Indian Railway Establishment Manual, Volume -I (Revised Edition1989) Edition -2009 Erroneous Promotions.

In the Indian Railway Establishment Manual, Volume-I (Revised Edition 1989)/ Fist Re-print Edition – 2009,” Rule 2927- R II “appearing in the last sentence of existing para 228 II(d) at page no.85 may be read as” Rule 2027 – R II (Fifth reprint) 1974, renumbered as Rule-1327 – R- II( 2nd Reprint)2005
Please acknowledge receipt.
sd/-
(Abhilasha Jha Misra)
Director Accounting Reforms
Railway Board
Source : NFIR

7th Pay Commission brings dhamaka before Diwali - ET

7th Pay Commission brings dhamaka before Diwali - ET

The seventh pay commission has brought a Diwali delight for all. Industry keeps its hopes high as employees get pay hike.

It could be an early Diwali for white goods marketers, vehicle makers and smartphone companies in India with the Seventh Pay Commission disbursement to central government employees to take place in August and September, says a study by Tata Strategic Management Group.


Source ET

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Central Government Employees Memes Exact Situation!

Central Government Employees Memes Exact Situation! Just for Fun :) #7th CPC Memes,  #7cpc memes, #Central Government Employees ...