Saturday, 21 January 2017

7th pay commission: This is why Modi government not giving hike to 47 lakh employees


7th pay commission: This is why Modi government not giving hike to 47 lakh employees

Reports suggest that the committee under the chairmanship of finance secretary Ashok Lavasa has finalised its report for salary hike in accordance with the recommendations of the seventh CPC, but the government is unable to pay the allowances to its employees due to cash crunch.

More than 14 months have passed since the seventh pay commission report was submitted and little less seven months have elapsed since the union cabinet approved implementation of the salary hike recommendations, but the central government employees are still awaiting the good news.
Demonetisation is said to be the reason behind the delay in announcing allowances by the Narendra Modi government for the 47 lakh employees and 53 lakh pensioners. The number of beneficiaries includes 14 lakh employees and 18 lakh pensions from the armed forces.

HOW DEMONETISATION AFFECTS PAY HIKE: THINGS TO KNOW
  1. The government has announced that it will implement the seventh pay commission's recommendations from January 1 last year. But, in the aftermath of demonetisation, the government is not in position to make the final decision.
  2. The seventh pay commission proposed a 138.71 per cent hike in housing allowance (HRA) and 49.79 per cent for other allowances.
  3. The pay commission estimated that during the current fiscal, the hike in allowances would add a burden of Rs 29,300 crore (Rs 17,200 crore under HRA and Rs 12,100 crore under other allowances). This is a huge sum but after demonetisation, the government is working hard to stave off the cash crunch that set in.
  4. The Modi government has constituted a committee to look into the recommendations regarding allowances and the manner of their implementation.
  5. Some reports suggest that the committee under the chairmanship of finance secretary Ashok Lavasa has finalised its report, but the government is unable to pay the allowances to its employees due to cash crunch.
  6. The employees' unions have been putting pressure on the finance ministry to announce hike in allowances at the earliest.
  7. The announcement of assembly elections in five states has given some time for the government as it cannot announce pay hikes till the model code of conduct is in place.
  8. The assembly elections have given the government time till March 8, by when there would be some additional cash in circulation. But, by then the budget would have been presented and accommodating over Rs 29,000 crore for salaries and pensions in the budge may pose a problem.
  9. The delay in implementation of the seventh pay commission's recommendations has caused tremendous irritation and frustration among employees.
  10. The BJP may have to face a backlash in the assembly elections in the five states, two of which is ruled by the party either directly or in alliance. Thus, demonetisation move by the Modi government may strike a double blow to the BJP in polls.
Source: Indiatoday

GPF Resolution - accumulations at the credit of subscribers to the GPF and other similar funds 2017, w.e.f. 1st January, 2017

GPF Resolution - accumulations at the credit of subscribers to the GPF and other similar funds 2017, w.e.f. 1st January, 2017

(PUBLISHED IN PART I SECTION 1 OF GAZETTE OF INDIA)

F.NO. 5(1)-B(PD)/2016
Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)
New Delhi, the 18th January, 2017
RESOLUTION

It is announced for general information that during the year 2016-2017, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8.0% (Eight per cent) w.e.f. 1st January, 2017 to 31st March, 2017. This rate will be in force w.e.f. 1st January, 2017.

The funds concerned are:
1. The General Provident Fund (Central Services).
2. The Contributory Provident Fund (India).
3. The All India Services Provident Fund.
4. The State Railway Provident Fund.
5. The General Provident Fund (Defence Services).
6. The Indian Ordnance Department Provident Fund.
7. The Indian Ordnance Factories Workmen’s Provident Fund.
8. The Indian Naval Dockyard Workmen’s Provident Fund.
9. The Defence Services Officers Provident Fund.
10. The Armed Forces Personnel Provident Fund.
2. Ordered that the Resolution be published in Gazette of India.
(Vyasan R.)
Deputy Secretary (Budget)
To,
The Manager, (Technical Branch)
Government of India Press, Faridabad.

Source: GPF Resolution

Instructions on sealed cover procedure - where Government servant has been acquitted but appeal is contemplated/pending


F. No. 11012/6/2016-Estt.A-III
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training
Establishment A-III Desk
North Block, New Delhi
Dated: 19th January, 2017
OFFICE MEMORANDUM

Subject: Instructions on sealed cover procedure - where  Government servant has been acquitted but appeal is  contemplated/pending - clarification regarding.

The undersigned is directed to refer to this Department's O.M. No.22011/4/91-Estt.A dated 14.09.1992 issued in the light of the Judgement dated 27.08.1991 of the Hon'ble Supreme Court in the case of Union of India v/ s K.V. Jankiraman etc. (AIR 1991 SC 2010). References have been received seeking clarification with regard to the course of action in cases where the Government servant is acquitted by trial court but an appeal against the judgment is either contemplated or has been filed. This issue
has been examined in the light of various court judgements including Bank of India and another vs. Degala Suryanarayana, Appeal (Civil) 3053-54 of 1997, (1999) 5 SCC 762 in consultation with Department of Legal Affairs and it is clarified as following:
i. Where the recommendation of DPC has been kept in sealed cover solely on account of pendency of the criminal case, the sealed cover may be opened in case of acquittal of the Government servant provided it has not been stayed by a superior court.
ii. In the order of promotion a mention may however be made that the promotion is provisional subject to the outcome of appeal that may be filed against, the acquittal of the Government servant. The promotion thus will be without prejudice to the action that may be taken if the judgement of the trial court acquitting the Government
servant is set-aside.

iii. In case on appeal the Government servant stands convicted, following action will be taken:
a. The provisional promotion shall be deemed non est, and the Government servant shall stand reverted;

b. In case of the Government servant being sentenced to imprisonment exceeding 48 hours, he will be deemed to be  under suspension in terms of rule 10(2)(b) from the date of conviction;

c. Action under rule 19 (i) of the CCS(CCA) Rules, 1965, read with OM No. 11012/11/85-Estt (A) dated the 11th November, 1985 and 4th April, 1986 shall be taken.

2. All Ministries/ Departments are requested to bring the aforesaid instructions to the notice of all concerned and take action accordingly.

3. Hindi version will follow.
(Mukesh Chaturvedi)
Director (E)
To
The Secretaries of All Ministries/ Departments (as per the standard list)
Source: ccis.nic.in

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