7CPC

Committee on Allowances of 7th CPC : 3rd Reply in Parliament on 24.3.2017

Committee on Allowances of 7th CPC : 3rd Reply in Parliament on 24.3.2017

In Lok Sabha on 24th March 2017, the Minister of State for Finance Shri Arjun Ram Meghwal explained in written form to various questions regarding the submission of report of Committee on Allowances.

Already two times (10th March and 22nd March) replied in the Parliament about this issue and the same type of answer given by the minister on 24th March also.

“The Committee on Allowances has been constituted vide order dated 22.07.2016. The Committee is to examine and make recommendations as to whether any changes in the recommendations of the 7th CPC relating to allowances are warranted and if so, in what form.

The Committee has received a large number of demands on allowances and even now receives demands in this regards. All the demands have been diligently examined. The Committee has already held 13 meetings so far and interacted with the representatives of Central Nodal Ministries, National Council (Staff Side), Joint Consultative Machinery (JCM) and officers and representatives of employee associations of Ministry of Health and Family welfare, Home Affairs, Railways, Defence and Department of Posts.

The Committee has taken more time than was initially prescribed in view of the large number of demands received. The Committee is now in the process of finalizing its Report.

Decisions on implementing the Report will be taken after the Report is submitted by the Committee.”

Authority: Lok Sabha

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Be the first to comment - What do you think?  Posted by admin - March 25, 2017 at 5:01 pm

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Decision on 7th CPC allowances : Deep sense of frustration among employees

Decision on 7th CPC allowances : Deep sense of frustration among employees

Delaying 7th CPC allowances announcement will cause deep sense of frustration among Central Government employees.

“Reports indicate that the Government might take more time to announce its decisions regarding the Ashok Lavasa Committee’s report on allowances that were prescribed by the Seventh Pay Commission”

The Committee on Allowances was formed under the leadership of Ashok Lavasa in July 2016 to review the recommendations on allowances by the 7th CPC. The committee was initially given 4 months period to submit its report to Finance Ministry.

Later, citing the stagnation that resulted due to demonetization, the Finance Ministry extended the period for submitting the report to 22nd Feb 2017.
Replying to a question in the Parliament, Central Minister Arjun Ram Meghwal said, on March 10, that the Allowance Committee has not yet submitted its report and that the government will immediately announce its decisions on the report as soon as it is received. He added that the committee is in the last leg of preparing its reports and that it would be submitted to the government very soon.

Previously, it was said that the government will announce its decision as soon as the assembly elections in the five states concluded. Announcements were expected in Arun Jaitley’s budget speech in the Parliament. BJP’s win in the elections is now believed to be the reason behind a dramatic change in the situation.

As far as the Central Government employees are concerned, those living in the accommodations provided by the government are not bothered by the House Rent Allowance because the government doesn’t pay them any House Rent Allowance. Moreover, most higher officials stay in government accommodations.

Decisions on allowances offered to the armed forces are of special significance.

More than 50 lakh employees are hoping that the Centre will implement the revised allowances from April 1 onwards.

Be the first to comment - What do you think?  Posted by admin - March 24, 2017 at 3:24 pm

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Why 7th Pay Commission’s ‘miserly’ hike is understandable

Why 7th Pay Commission’s ‘miserly’ hike is understandable

The central government is well aware of the fiscal trap pay hike largesse portends.

The 33 lakh-strong central government employees are peeved with what they perceive to be a niggardly increase granted by the 7th Pay Commission vis-à-vis the earlier pay commissions and accepted with alacrity by the central government.

The government though has averred that it is “not appropriate” to compare the increase in minimum pay suggested by the 7th Central Pay Commission with that of the previous commissions. According to the 7th Pay Commission, the real increase given in 1996 and 2006 in minimum pay was 31 per cent and 51 per cent.

As compared to that, the commission recommended an increase of 14.29 per cent. In concrete terms, the minimum salary has been hiked from Rs 7,000 per month to Rs 18,000 per month. The central government employees want it to be fixed at Rs 26,000 per month (Source: India.com).

The central government is well aware of the fiscal trap pay hike largesse portends, given the real and grim possibility of state government employees making a clamour for parity with central government salaries.

A Hindu report, however, takes a more charitable view of things when it says that data compiled from multiple sources, including a 2008 official survey, Right to Information applications, media reports and the 2011 Census shows that India has 1,622.8 government servants for every 1,00,000 residents. In stark contrast, the US has 7,681. The central government, with 3.1 million employees, thus has 257 serving every 1,00,000 population, against the US federal government’s 840.

But then comparisons are proverbially odious. The US outdoes India in most government norms including judge-to-population ratio. While it is desirable to emulate the US, practical considerations including the size of the Indian population and the absolute number of employees make it veer towards caution.

Any egregious hike by the central government would have a precipitous impact not only on its finances but also on states, many of which are BJP ruled.

The central government is only following the template it laid down for itself when it boldly addressed the festering problem of the armed forces. While agreeing to one-rank-one-pension (OROP) norm in principle, it stood its ground and remained firm on ensuring this parity only every five years as against the unreasonable demand of every year.

At Rs 93,231 (Economic Survey report) for 2015-16, India’s per capita income for a month translates into an abysmal Rs 7,769 as opposed to what the central government employees have been offered – Rs 18,000. Mind you, the national average hides an inherent skew – the unorganised sector workers intuitively must be getting only half of the national average.

The point is the central government cannot be gung-ho about pay increases for employees coming under its jurisdiction given its ripple effect, in so far as similar demands from state government employees as well as the justified heart-burn it would cause among other employees especially in the unorganised sector.

Time was when public sector bank (PSB) employees got considerably more than central government employees. But successive pay commissions appointed by the central government have upset the PSB employees’ applecart. The sad truth is the central government pays out of the seemingly bottomless coffers of the consolidated fund of India whereas banks have to pay from their revenue and are answerable to their shareholders.

In any case, when the base is already large, further increases necessarily will have to taper down and be incremental. The 2006 increase of 51 per cent was indeed egregious. An encore of it in 2016 was just not possible.

As an aside, it must be pointed out that the central government job is no longer a cushy one, what with a demanding Prime Minister snapping at their heels. They are for the first time feeling the heat of the private sector motto – work hard, party hard.

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7th CPC Allowance Committee Report – Minister once again replied in Parliament on 22.3.2017

7th CPC Allowance Committee Report – Minister once again replied in Parliament on 22.3.2017

DoPT Minister replied in Lok Sabha on 22nd March 2017 regarding the status of the Committee on Allowances.

Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister’s Office Shri DR. JITENDRA SINGH said in a written reply to various questions regarding the report of allowance committee in Parliament on 22.3.2017 as follows…

“Several representations have been received from various employees’ associations on allowances by the Committee on Allowances. Joint Consultative Machinery (JCM) has also requested to resolve the pending issues including allowances as soon as possible.

To examine the recommendations of the 7th Central Pay Commission on Allowances (other than Dearness Allowance), a Committee of Secretaries under the Chairmanship of Finance Secretary and Secretary, Expenditure has been set up by the Ministry of Finance, Department of Expenditure on 22.07.2016.

In the 13 meetings held so far, the Committee has interacted with National Council (Staff Side), Joint Consultative Machinery (JCM) and the representatives of All India Railwaymen Federation (AIRF), National Federation of Indian Railwaymen (NFIR), All India Train Controllers Association (AITCA), All India Guards Council (AIGC), Federation of National Postal Organization, National Federation of Postal Employees, Bhartiya Postal Employees Federation, Bhartiya Postal Employees Association (Group-C), Joint Action Council of Service Doctors Organization (JACSDO), All India GDMO Association (AIGDMOA), Delhi Administration Doctors Welfare Association (DADWA), Faculty Association (Maulana Azad Medical College and associated hospitals), Faculty Welfare Association (Lady Hardinge Medical College), Safdarjung Hospital Medical Officers Association, All India Government Nurses Federation (AIGNF), Railway Nurses of India, All India ESIC Nurses Federation, PGI Nurses Welfare Association, Trained Nurses Association of India (TNAI), National Federation of Atomic Energy (NFAEE).

The Committee has not yet submitted its report to the Government. Decisions on implementing the Report will be taken after the Report is submitted by the Committee.

Authoirty: Lok Sabha

Be the first to comment - What do you think?  Posted by admin - March 23, 2017 at 7:21 pm

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Resolution of Anomalies in the 6th CPC Report

Resolution of Anomalies in the 6th CPC Report

RESOLUTION-ANOMALIES-6TH-CPC-7TH-CPC

Recommendations of the Sixth Central Pay Commission (CPC) and several improvements made thereon by the Government have been largely well received by the armed forces personnel including ex-servicemen. Some issues regarding service conditions, pay, pension and allowances, including demand for non-functional upgradation, were subsequently received, which were examined by the Government on case to case basis.

Some of the pay concerns of armed forces personnel were also examined by a committee constituted under the chairmanship of Shri Pranab Mukherjee, the then Minister of External Affairs. The committee’s recommendation on placement of Lt Cols / equiv in Pay Band IV was accepted and implemented by the Government.

Thereafter, a committee was constituted under the chairmanship of the Cabinet Secretary in 2012, to examine certain pay and pension issues of armed forces personnel. All the recommendations of Cabinet Secretary Committee related to ex-servicemen were implemented. The Committee’s recommendations on pay related issues were referred to the 7th CPC.

The improvement of service conditions, pay, allowances and retirement benefits of armed forces personnel is a continuous process, which is examined in consultation with various stakeholders, and on case to case basis.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Rajeev Chandra Sekhar in Rajya Sabha today.

PIB

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Disability Pension for Soldiers

Disability Pension for Soldiers

The 7th Central Pay Commission (CPC) recommended the following on disability pension:

The Commission is of the considered view that the regime implemented post 6th CPC needs to be discontinued, and recommended return to the slab based system. The slab rates for disability element for 100 percent disability would be as follows:

Ranks Levels Rate per month (INR)
Service Officers 10  and  above 27000
Honorary Commissioned Officers
Subedar Majors / Equivalents 6 to 9 17000
Subedar / Equivalents
Naib Subedar / Equivalents
Havildar / Equivalents 5 and below 12000
Naik / Equivalents
Sepoy / Equivalents

The above recommendation has been accepted and Resolution dated 30.09.2016 issued accordingly.

The 6th CPC dispensation of the calculation of disability element on percentage basis, however, continues for civil side which has resulted in an anomalous situation. The issue has accordingly been referred to the Anomaly Committee. The disability element which was being paid as on 31.12.2015 will, however continue to be paid till decision on the recommendations of Anomaly Committee is taken by the Government.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Husain Dalwai in Rajya Sabha today.

PIB

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7th Pay Commission: CPSEs to spend Rs 20,000 crore on salary hikes

7th Pay Commission: CPSEs to spend Rs 20,000 crore on salary hikes

After getting pay hikes last year on implementation of the 7th Pay Commission, the central public sector enterprises (CPSEs) are likely to spend additional Rs 20,000 crore in the next fiscal year (FY17-18) as recompense to 12 lakh employees.

As per 7th Pay Commission, in the first installment, four lakh CPSE executives will likely to receive salary revision in July with effect from January 1, 2017. The expected cost for the same will be Rs 8,000 crore per year, as reported by The Financial Express.

Additionally, the pay hikes are likely to be followed by a wage revision for over 8 lakh workers which will cost CPSEs nearly Rs 12,000 crore, the report said quoting a source.

As per the report, this salary revision is based on the recommendations of the 3rd Pay Revision Commission (PRC), which constitutes the department of public enterprises, and the exercise will be carried out by each CPSE separately after negotiating with the employee unions.

Last year in June, as per The Economic Times report, the government had appointed a committee to review and revise the structure of salary at CPSEs.

That time, the government had released a notification, which said, The step was taken on recognising that in the prevailing business environment the CPSEs have to be commercially viable and competitive, and that the employees of the CPSEs have to be provided with suitable working conditions, emoluments and incentives to motivate them to strive for further growth, productivity and profitability of their enterprises.
Source: Zee News

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Most of the Central Government employees feel that the enhancement of DA/DR is meager

Most of the Central Government employees feel that the enhancement of DA/DR is meager

Calculation of DA/DR based on AICPIN only

“Calculation of Dearness Allowance and Dearness Relief for Central Government Employees and Pensioners based on the methodology prescribed by the recommendations of Central Pay Commission”

Dearness Allowance is issued twice a year and the Seventh Pay Commission has adopted the same calculation methods that were prescribed by the Sixth Pay Commission.

The same series of the All-India Average Consumer Price Index Numbers for Industrial Workers (Base 2001=100) are used for the calculation of DA/DR to be continued. The 7th CPC recommendations are implemented from 1.1.2017 and no DA from 1.1.2017 to 1.7.2017. And from 1.7.2017, 2% DA calculated as per the same formula recommended by 6th CPC. And then now, same calculation with the Consumer Price Index, the figure of two percent was arrived.

Most of the Central Government employees feel that the enhancement of DA/DR is meager.

The Central Government had nothing to do with the Dearness Allowance issued to the Central Government employees in the past, which were as high as 10 percent. Similarly, the government is in no way connected with the current announcement of two percent DA/DR.

The same AICPIN (CPI IW BY2001=100) adopted for the calculation of Dearness Allowance to draw their pay in the pre-revised pay scale of 5th and 6th CPC. For 6th CPC, 4% Dearness Allowance was calculated on the basis of the same method. In other words, it will be expected to increase from 132 percent to 136.

The Dearness Allowance is calculated based on the changes in the prices of essential commodities in 75 cities and towns in India, over a period of six months. The monthly data, called the AICPIN, are released each month, by the Labour Bureau under the Ministry of Labour and Employment.

Central Government employees and Pensioners are not only getting the DA and DR, also employees working under Bank, CPSE etc,. The CPI(I-W) series are used for the calculation of DA for Bank Staff and IDA for CPSE employees. Almost the same enhancement of DA will adopt for the employees working in State Governments. Consumer Price Index will impact on the salaries and pension of more than 2 crore employees and pensioners directly.

Just watch the difference of DA amount between 6th and 7th CPC:

As on 1.1.2016 As on 1.7.2016 DA from 1.1.2017
6th CPC Basic Pay 10,000 (2400GP) 10,300 412 (4%)
7th CPC Matrix Pay 26,300 27,100 542 (2%)
da-calculation-7th-CPC

Source: www.govtenews.com

Be the first to comment - What do you think?  Posted by admin - March 20, 2017 at 7:48 pm

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7th Pay Commission: Higher allowances to be proposed in this month

7th Pay Commission: Higher allowances to be proposed in this month

New Delhi: The Committee on Allowances will propose to increase allowances of central government employees, besides dearness allowance (DA) in this month.

DA is being paid to them with their pay packages.

The Committee on Allowances, under Finance Secretary Ashok Lavasa, was formed in July 2016 following protests by government employees over recommendations of the 7th Pay Commission on allowances.

The 7th Pay Commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.

Later, the Finance Minister extended the deadline for report submission to February 22, 2017.

The Committee on Allowances is yet to submit its report, the Minister of State for Finance Arjun Ram Meghwal said in Lok Sabha on March 10.

However, he said that the deliberations of the committee are in the final stages.

Besides the basic salary, a large portion of a central government employee’s salary is the house rent allowance (HRA); some changes are to be made in this category of the recommendations of the 7th Pay Commission on allowances,

“The Committee on Allowances has decided against reducing the house rent allowance (HRA). The 7th Pay Commission suggested bringing down the HRA to 24 per cent, 16 per cent and 8 per cent respectively depending on type of cities,” the Finance Ministry’s officials said.

The officials also said that the Committee on Allowances would suggest, the HRA is to be kept as it was under the Sixth Pay Commission at 30 per cent, 20 per cent, and 10 per cent respectively.

The Committee on Allowances is likely to remain constant the Transport Allowance for central government employees as 6th Pay Commission recommendations including Dearness Allowance(DA), the sources added.

So, the employees now get all allowances except dearness allowance, according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

The higher allowances most probably to implement from the month of April and the cabinet may give its nod in this month, the sources confirmed.

TST

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7th Pay Commission : From Higher Allowance to Implementation where does the story Stands

7th Pay Commission : From Higher Allowance to Implementation where does the story Stands

7th Pay Commission : On Friday senior officials of Union Cabinet were expected to meet members of the panel over Higher Allowance and National Pension Scheme (NPS).

However sources indicate that the meeting did not take place.

As almost a year has passed, we try to figure out where does the story of 7th Pay Commission stand today. The panel was constituted a day after the implementation of the 7th Pay Commission recommendations.

This panel on the higher allowance, named ‘Committee on Allowance’ was also expected to make a major announcement on Friday following the submission of the report to the government. However that too didn’t happen.

As we all know, Prime Minister gave the nod for an additional 2 per cent increase in Dearness Allowance(DA) for all Central Government employees. Moreover, along with the DA, for pensioners, the Dearness Relief (DR) has been increased by 2 per cent with effect from January 1, 2017.

While reports claim that the increasing of the Dearness Allowance has benefited 48.85 lakh employees and 55.51 lakh pensioners, the central Government employees are now concerned about the Committee on Allowance’s decision.

But more importantly, although the DA has been hiked, the Committee headed by Finance Secretary Ashok Lavasa is yet to submit the reports on other allowances, which were also scheduled to be increased once the 7th Pay Commission was implemented.

However, the National Joint Council of Action (NJCA) on behalf of the Central Government employees expressed their dissatisfaction over the hiked 2% DA and said it should have been increased by at least 3%.

April 1, 2017, was the rumoured date for implementing the allowance hike but now that the report has not yet been submitted, it seems the rumour is to stay as it is.

Following this, the NJCA has warned of dire consequences if the Centre fails to implement the allowance hike from April 1.

Source: India.com

Be the first to comment - What do you think?  Posted by admin - March 18, 2017 at 4:56 pm

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7th CPC: AIIMS nurses to go on mass casual leave tomorrow

7th CPC: AIIMS nurses to go on mass casual leave tomorrow

Services at AIIMS are likely to be hit tomorrow as around 5,000 nurses of the premier hospital plan to go on mass casual leave to protest against the “discrimination” by the Seventh Central Pay Commission.

The AIIMS Nurses Union has also threatened to go on an indefinite strike from March 27 if their demands for revision of their pay scales and a hike in allowances are not met.

We are protesting against the retrograde recommendations of the Seventh Pay Commission. Our demand is that the entry pay grade for staff nurses should be enhanced to Rs 5,400 from the existing Rs 4,600 and the nursing allowance should be enhanced by Rs 7,800.

Besides, risk allowance and night duty allowances should be given to all nurses as it is given to all other government employees, said Harish Kumar Kajla, President of AIIMS Nurses Union.

We deal with the deadly infections daily but we are not provided enough risk allowance. If the demands are not met, we will go on an indefinite strike from March 27, Kajla added.
The association further claimed that the AIIMS management despite giving assurances has not addressed their issues for over a year.

On the assurance give by the management in a meeting regarding recommendation of enhanced pay scale, the Nurses Union had withdrawn the agitation called upon by the All India Nurses Union and subsequently withdrawn the mass casual leave called on February 26, 2016.

The AIIMS Nurses Union was patiently waiting for the last one year for the fulfilment of the promises made by the administration but our demands went into deaf ears. Despite repeated representations, the administration has shown no mood to address the issue raised by the Union, Kajla claimed.

According to faculty members, the move will badly hit the emergency services and the functioning of the operation theatres of the institute apart from other patient services.

The pay scales proposal has been sent to the Ministry of Health for consideration while the report of government on the allowances has not yet been finalised, a senior AIIMS official said.

Source: PTI

Be the first to comment - What do you think?  Posted by admin - March 17, 2017 at 11:31 am

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7th Pay Commission: Committee on Allowances yet to submit report: Minister of State for Finance

7th Pay Commission: Committee on Allowances yet to submit report: Minister of State for Finance

New Delhi: The Committee on Allowances, tasked with reviewing the recommendations of the 7th Pay Commission on allowances, was given four months to submit its report. Later, the deadline was extended to February 22, 2017, has not yet submitted its report to the government.

In a written reply to a question on 7th Pay Commission in Lok Sabha on March 10, Minister of State for Finance Arjun Ram Meghwal said the Committee, under Finance Secretary Ashok Lavasa, is yet to submit its report.

The minister said that the deliberations of the committee are in the final stages.

The Committee on Allowances was formed in July 2016 following protests by government employees over recommendations of the 7th Pay Commission on allowances.

The 7th Pay Commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

In July, the Finance Minister Arun Jaitley constituted a committee under Finance Secretary Ashok Lavasa to review the recommendations. The committee was given four months’ time to submit the report to Finance Minister.

In October, Ashok Lavasa was quoted by some agencies as saying that he was ready with the report.

Later, the Finance Minister extended the deadline for report submission to February 22, 2017. Now, going by Minister of State for Finance’s reply, it seems government employees will have to wait longer before they can hear some news on hike in allowances.

According to some reports, the Committee on Allowances has decided that the current HRA slab, which is 30 per cent of basic pay, for metros would continue against reducing the House Rent Allowance (HRA) for central government employees. The 7th Pay Commission suggested bringing down the HRA to 24 per cent, 16 per cent and 8 per cent respectively depending on type of cities.

The transport allowance is likely to remain constant as certain reports said the Committee on Allowances agreed with 7th Pay Commission’s recommendation, which had already factored in the Dearness Allowance at 125 per cent assuming the date of implementation to be January 1 next year.

TST

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7th Pay Commission: Central employees wait for higher allowances more than for Holi

7th Pay Commission: Central govt employees wait for higher allowances more than for Holi

New Delhi: Just one day remains to Holi and more than 48 lakh serving central government employees and 52 lakh pensioners have not received higher allowances under the 7th Pay Commission recommendations from August last year due to Union cabinet hasn’t still approved the higher allowances.

The central government employees received higher basic pay in August 2016 with arrears, effective from January 1, 2016 on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance has yet to materialize.

The sources in the Finance Ministry told us on condition of anonymity, “in June last year, the cabinet approved the 7th Pay Commission recommendations but the allowances referred to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

“The Cabinet is likely to approve the higher allowances in the next week as the Assembly election results in five states were declared yesterday and the model code of conduct enforced ahead of the elections ceased to be in operation with immediate effect.

The employees can’t receive the higher allowances without the Cabinet approval. In contrast, the higher allowances might not impact employees much but since Holi is round the corner, they will feel the pinch.”

The Finance Minister Arun Jaitley, however, has managed to disburse the higher allowances to its employees including pensioners. “FM Jaitley is making all possible efforts to pay them the higher allowances with April salaries”, said the sources.

However, the employees now get allowances according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

TST

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Implementation of 7th Pay Commission Report

Implementation of Seventh Pay Commission Report

The following steps have been taken to implement the recommendations of 7th Pay Commission Report in respect of Armed Forces personnel:

(i) Issue of Resolution dated 25th July 2016 by Ministry of Finance.

(ii) Issue of Resolution dated 5th September 2016 by Ministry of Defence.

(iii) Issue of orders dated 10th October, 2016 by Ministry of Defence for payment of ad-hoc arrears equal to 10% Basic Pay and Dearness Allowance.

The order for revision of pension to ex-servicemen pursuant to the recommendations of 7th Pay Commission Report was issued on 29th October, 2016. As per information available in respect of pre-2016 pensioners, 24 public sector banks have revised pension of 18,99,697 pensioners and have paid Rs.5883.27 crore (approx) on account of arrears of pension / family pension.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Arvind Sawant in Lok Sabha today.

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7th Pay Commission: As Budget session starts tomorrow, all eyes on Arun Jaitley to announce hike in allowances

7th Pay Commission: As Budget session starts tomorrow, all eyes on Arun Jaitley to announce hike in allowances

The Committee on Allowances has already submitted its report to the Finance Ministry in which it has reviewed the recommendations of the Seventh Pay Commission on allowances.

With the second part of the Budget session in Parliament starting on Thursday, all eyes are on Finance Minister Arun Jaitley who may just announce a hike in allowances for Central government employees.

The Committee on Allowances has already submitted its report to the Finance Ministry in which it has reviewed the recommendations of the Seventh Pay Commission on allowances.

The Committee under Finance Secretary Ashok Lavasa is believed to have suggested that the house rent allowance be kept as it is and not brought down as recommended by the Seventh Pay Commission.
The pay hike under the Seventh Pay Commission has been the lowest in the last 70 years and a decrease in allowances is unlikely to go down well with nearly 50 lakh government employees.

THE DEVELOPMENTS IN THE SEVENTH PAY COMMISSION STORY:

  • With Uttar Pradesh and Manipur voting in the final phase today, the model code of conduct will be lifted by the end of the day. The Narendra Modi government, which could not make any major announcements during the poll season, is expected to speak on the allowances soon.
  • The second part of the Budget session will continue for a month till April 12, and it is widely believed that Arun Jaitley can make an announcement during the session, and employees may start getting revised allowances from the new fiscal in April.
  • On allowances, this pay commission has not had the best news for government employees with the panel recommending axing 53 of the 196 allowances and merging a few others.
  • Following protests by employees, the government formed a committee under Ashok Lavasa to look into the recommendations. The pay commission had suggested bringing down the house rent allowance (HRA) to 24 per cent from 30 per cent of basic pay for metros.
  • While the Committee on Allowances decided against a slash in HRA, reports suggest that it has agreed with Seventh Pay Commission’s recommendation on no hike in transport allowance.
  • To add to the growing resentment among employees, the dearness allowance (DA) is likely to be hiked by just 2 per cent this year. “The dearness allowance as per the agreed formula by the Centre works out to be 2 per cent which would be effective from January 1, 2017,” Confederation of Central Government Employees President K K N Kutty said.
  • Representatives of employees unions are not happy with the hike and said it is not in sync with price rise and inflation. According to some reports, employees union are planning to protest against the “meagre” hike in DA.

Read at: Indiatoday

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7th Pay Commission: Central gov employees to get higher allowances from April 1, says FinMin

7th Pay Commission: Central employees to get higher allowances from April 1, says FinMin

New Delhi: Central government employees will get higher allowances according to the 7th Pay Commission recommendations from April 1, a senior finance ministry official said.

The employees will get their April salaries with higher allowances in accordance with the 7th Pay Commission recommendations, he told our reporter at the finance ministry on Monday.

Everything is decided. The Cabinet and the prime minister have to approve the Committee on Allowances report. The finance ministry has no reason to raise any question on the report of committee on allowances, he added.

He said the process to implement the higher allowances would be completed soon.

The central government approved the 7th Pay Commission scale for its employees in June, offering a highest basic pay of Rs 2.5 lakh and a minimum of Rs 18,000.

The new basic pay has been given in August 2016 with arrears, effective from January 1, 2016. The allowances, however, other than dearness allowance referred to the Committee on Allowances headed by the Finance Secretary Ashok Lavasa in July 2016, for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Accordingly, existing allowances are now paid to the employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

The Committee on Allowances was initially given a time of four months to submit its report to the Finance Minister Arun Jaitley.

In October last year, Ashok Lavasa was quoted by some media outlets as saying he was ready with the report.

But the government gave extension to the committee up to February 22, 2017 on the pretext of demonetisation and the government said that the cash crunch was the reason behind the delay in announcing higher allowances.

The announcement of assembly elections in five states has given another excuse for the government as it cannot announce allowances hike till the model code of conduct is in place up to March 8.

The finance ministry official said the Committee on Allowances report states the current House Rent allowance (HRA) slab, which is 30 per cent of basic pay, for metros for employees. An announcement on the same is expected soon but no hike in Transport Allowance (TPTA) for central government employees in its report and the Transport Allowance will remain the same as 6th Pay Commission recommendations.

However, the pay panel had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay for Class X (metros), Y and Z cities, respectively.

TST

Be the first to comment - What do you think?  Posted by admin - March 7, 2017 at 10:45 am

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7th CPC Pay Matrix Anomaly: NFIR writes to Railway Board

7th CPC Pay Matrix Anomaly: NFIR writes to Railway Board

No.IV/NFIR/7 CPC (Imp)/2016/R.B./part I

Dated: 06/03/2017

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,
Sub: Implementation of 7th CPC Pay Matrix – Pay fixation to staff – Anomaly resulting less pay to senior in comparison with junior – reg.
Ref: Notification issued by the Railway Ministry vide RBE No.90/2016 – Rule 10(2) therof.

NFIR desires to bring to the notice of the Railway Board, the anomalous situation arisen pursuant to sub-para (2) of Rule 10 of the Notification issued by the Railway Board vide RBE No.90/2016. A case on North Western Railway is cited below as example:-

  • Mr.X and Y have been working as SSE in the Loco Workshop, Ajmer in GP 4600/- (Level 7). Mr. X is senior to Mr. Y.
  • Both X & Y have been drawing pay equal to Rs.60,400/- on 1st July 2016. Both the employees are due for financial upgradation benefit under MACPS in the month of February 2017.
  • Mr.X has been given financial upgradation under MACPS and his pay when fixed in Level 8 comes to Rs.62,200/-. His next increment is due on 1st January 2018 when his pay will raise to 64,100/-.
  • Mr.Y has been denied financial upgradation due to ‘Good ACR’ for the year 2014. His pay on lst July 2017 will be Rs. 62,200/- in Level 7 which will be equal to Mr. Y’s pay as on 1st July 2017.
  • When Mr.Y becomes fit for financial upgradation under MACPS sometime between July and December 2017, then his pay will be 64,100/- in Level 8 which will be equal to the pay of Mr.X in January 2018. Subsequently, when Mr.Y will be given next increment in January 2019 ultimately Mr. X will lag behind by six months despite being senior.

The position mentioned above clearly reveals that senior has been put to loss by way of drop in emoluments. This needs to be remedied to do justice to senior employees.

NFIR, therefore, requests the Railway Board to examine the case in the light of above illustration and take necessary action for rendering justice to senior staff in whose case, the drop in emoluments has taken place. Federation may also be apprised of Board’s response early.

Yours faithfully,
sd/-
(Dr.M.Raghavaiah)
General Secretary

Source: NFIR

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7th Pay Commission: Higher allowances woes plague central govt employees

7th Pay Commission: Higher allowances woes plague central govt employees

New Delhi: Central government employees have not got their higher allowances under the 7th Pay Commission recommendations over the last seven to eight months.

A central government employees union leader, said the government has not released the higher allowances for central government employees for last seven months.

He said the higher allowances issue has affected about 48 lakh serving central government employees and 52 lakh pensioners, who could not pay their house rents, tuition fees of children, installments of home and vehicle loans and insurance premiums.

We were promised in August, 2016 that the higher allowances (as per the 7th Pay Commission) would be given to us within four months, but we haven’t got its till now.

They (the government) tell us that the model code of conduct has come into effect from January 4 to March 8 for five states assemblies poll process, so they can’t announce the higher allowances. Actually they do not intend to pay the higher allowances in time. In October last year, the Finance Secretary Ashok Lavasa, who is the head of the Committee on Allowances, said, he was ready with the report to submit the Finance Minister Arun Jaitley but Jaitley didn’t receive the report of allowances, the union leader told.

The union leader said even though the 7th Pay Pay Commission was implemented in August, 2016, the central government employees have not yet been given the higher allowances till date.

Earlier, the government has given higher basic pay in August 2016 with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance referred to the Committee on Allowances for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Accordingly, existing allowances are now paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

However, the Finance Minister Arun Jaitley, promised to address the issue of higher allowances after the completion of the polls of the five states.
TST

Be the first to comment - What do you think?  Posted by admin - March 3, 2017 at 10:58 am

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Clarification on implementation of 7th Central Pay commission (CPC)

Clarification on implementation of 7th Central Pay commission

Office of the Principal CDA (Pensions)
Draupadi Ghat, Allahabad – 211 014

REGISTERED

Circular NO.574

Dated: 20th February,2017

Subject: Clarification on implementation of 7th Central Pay commission (CPC)

Reference: This office circular No.570 dated 31.10.2016.
(Available on this office website www.pcdapension.nic.in)

In terms of Para-9 of GOI, MOD letter dated 29th October 2016, the implementation of 7th CPC recommendations relating to methodology for calculation of disability element has been referred to the Anomalies Committee. The disability element which was being paid to pre-2016 Defence Pensioners as on 31.01.2015 will continue to be paid till decision on the recommendations of Anomalies Committee is taken by the Government. Accordingly, disability element will be continued @ which was paid as on 31.12.2015 (i.e. @ 119% DR), bur mean while before the implementation of the 7th CPC, dearness relief (DR) has been increased @ 125% w.e.f 01.01.2016 and paid to the pensioners.

2. The matter regarding recovery on account of payment of excess dearness relief, additional pension on disability pension & war injury element was raised by various pension Disbursing Agencies (PDAs) after the issue of this Office Circular No.570 dated 31.10.2016 on the basis of GOI, MOD letter NO.17(01)/2016-D(Pen/Pol) dated 29th October 2016 regarding implementation of 7th CPC.

3. Now, it has been decided that recovery of excess amount, if any, paid on account of payment of DR @ 125% instead of DR 119% while working out disability element/war injury element and recovery of additional pension on disability element/war injury element paid w.e.f 01.01.2016 to pensioners who attainted the age of 80 years and above will be withheld till further orders.

4. This circular has been uploaded on this office websire www.pcdapension.nic.in for dissemination to all alongwith Defence pensioners and pension Disbursing Agencies.

(S C SAROJ)
Sr.Accounts Officer(P)

Signed Copy

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7th Pay Commission: Transport Allowance not to be hiked

7th Pay Commission: Transport Allowance not to be hiked

New Delhi: The Transport Allowance for central government employees will not be hiked and remain the same as 6th Pay Commission recommendations including Dearness Allowance(DA).
The Finance Ministry today informed about the report of the ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa and said no hike in Transport Allowance (TPTA) for central government employees in its report. The committee accepted the 7th Pay Commission recommendation in this regard, which was announced earlier.

The Pay Commission has revised the Transport allowance (TPTA), which is given below:

NEW-TPTA

The existing Transport allowance table for A1/A cities and other places is under:

Existing-TPTA

The Pay Commission made report, assuming that the rate of Dearness Allowance 125 percent at the time of implementation of the pay commission recommendation, i.e. on January 1 next year.
Accordingly, the employees will not get any hike in Transport allowance on the time of implementation of the pay commission recommendation as the existing Transport allowance figure automatically reached the Pay Commission revised Transport allowance figure after adding 125 percent DA.

“In partial modification, the committee has further decided that the current HRA slab, which is 30 per cent of basic pay, for metros would continue,” according to the sources.

However, the pay commission had recommended reducing the house rent allowance (HRA) to 24 per cent of basic pay as against the 30 per cent of basic pay employees were drawing under the Sixth Pay Commission.

The government has given higher basic pay with arrears, effective from January 1, 2016 in August 2016 to its employees on the recommendations of the 7th pay commission but referred hike in allowances to the Committee on Allowances.

Usually, once the recommendations of the pay commission are approved, the increase in basic pay is followed by an increase in allowances.

The hike in allowances, most probably to implement from the month of April and the Finance Minister Arun Jaitley may announce it after ending the model code of conduct on March 8.

TST

Be the first to comment - What do you think?  Posted by admin - February 28, 2017 at 4:04 pm

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