Big Expectations from 7th CPC and Low possibilities projected by Union Finance Minister!
Honourable Finance Minister Shri.Arun Jaitely had spoken about the possible impact of 7th CPC recommendations in Parliament.
The Speech is critically reviewed by Comrade Elangovan of DREU.
7TH CPC WILL INCREASE CENTRAL GOVERNMENT PAY ONLY BY 15%.
SHOULD WE ACCEPT?
R.ELANGOVAN,
WORKING PRESIDENT, DREU
1. The Medium Term Expenditure Framework statement has not yet been uploaded in Finance Ministry’s website.However I have taken the figures provided by print media including The Hindu.As per their statement the expenditure on salaries will rise by 9.56% in the fiscal 2015-16 as a result of 7th CPC implementation over the normal estimated expenditure in the 2015-16 budget to Rs.100619 crores. This means that the expenditure projected was Rs.91,839cr which if increased by 9.56% becomes Rs.100619 crores.
2. While going through the earlier framework statements I have come to the conclusion that the ‘salaries’ shown is pay with normal increments plus DA projected.
3. As per the estimated strength and provision there of statement laid as part of finance budget,the normal projection as PAY was Rs.60731 cr and so DA is Rs 31,108 as deducted from Rs 91 839 cr. The budget document does not give the DA expenditure separately. It gives the total expenditure on all allowances. I have therefore arrived at the figure based on calculations. However I have sought the expenditure on DA, HRA, and Transport Allowance separately through RTI.
4. The increase proposed is Rs.100619 cr from Rs.91,839cr which means that there will be an increase of Rs.8780 cr. There won’t be any DA after 1-1-2016 up to 31-3-2016 in the fiscal 2015-16. Therefore the whole increase is on basic pay in this fiscal.
5. As we have already seen that the basic pay is Rs.60731 cr. the increase of Rs.8780 cr. is over this Rs.60731.This increase is 14.45% only.The expenditure projected for 2016-17 is Rs.1,12,000cr which is Rs.11,400 more over 2015-16 which works out to 11.32%. This is due to Increment, DA,HRA, TRA etc.The projection for 2017-18 is 1,16,000 cr.
6. If 40% of Basic Pay is to be given,the increase of expenditure in the fiscal 2015-16 must be Rs. 24000 cr as against the Rs. 8780 cr. The demand of JCM Staff side is that there must be an increase of 371% of basic pay as on 1-1-2016. With the 119% DA we would be drawing 219% already. The real increase demanded is 152% of Basic Pay.So not the 152% or 40% of 5th and 6th CPC is intended to be given to us. Only around 15% is going to be given.As The Terms Of Reference of 7TH CPC directs them to recommend only what is‘FEASIBLE AND DESIRABLE’ to the Government.Now the Government In Parliament states only 15% is FEASIBLE AND DESIRABLE. ARE WE TO ACCEPT IT.? Some PSUs got 15%. But that is for 5 years. But for Central Government Employees it is for Ten Years.Are We To Accept?
7. Pension expenditure for civilian pensioners was estimated to be Rs.27,145cr and defence pension Rs.54,500 cr. The total is Rs.81645 cr. This is expected to go up to Rs.88521 cr, which is an increase of Rs.6876 cr.As there will be no Dearness Relief for the fiscal 2015-16 the increase is to be accounted only to Basic Pension.
8. I have sought the expenditure break up for dearness relief under RTI. However the rough calculation shows a near increase of same 15% in Pension.
9. The impact of 6th CPC on expenditure as per estimated strength of establishment and provision there of in respect of Central Government civilian employees was as follows:
ARREARS Rs 26084 cr. For three years mostly on Pay and DA regular PAY Increase per annum: Rs 8685 cr. These are actual figures. The 219% of Rs. 8685 cris Rs.19000 cr. EVEN THIS IS NOT GIVEN.
10.We must issue a warning to the government afresh demanding acceptance of our demand.I recall my earlier note where in I had quoted BibekDebroy’s report that the 7th CPC will not be that destabilising to the Government as that of 6th CPC. GOVERNMENT PROVES THAT.
Source:http://postalpensioners.blogspot.in/2015/08/big-expectations-from-7th-cpc-and-low.html
Expected DA from Jan 2016 – Last and A New Chapter Begins
The last episode of “Expected DA from July 2015” is almost confirmed to hike by 6% and the official announcement is expected in the second week of next month.
‘The government usually announces additional dearness allowance for Central staff twice in a year from January and July, based on the price-fluctuation data of the previous six months.’
Central Government employees are currently being given a Dearness Allowance of 113%. With 6% DA almost conclusively assured from July 2015 onwards, official announcement is expected to be made during the cabinet meeting in the second week of next month. As soon as cabinet gives its nod, DA will be issued at 119% for the six months starting July 2015, up to December 2015.
Generally additional dearness allowance is being calculated only after releasing the Consumer Price Index for the previous six months. The price fluctuation data for the six months (July to December 2015) will be published by the Labour Bureau each month. Based on this AICPIN Points, a new another additional Dearness Allowance will be issued from January 2016.
The AICPIN points of December 2015, that is last month data will be announced only towards the end of January 2016. Only then will the Dearness Allowance from January 2016 will be calculated and it will be implemented after the cabinet gives its approval in March.
This will be the final dearness allowance based on the calculations prescribed by the 6th Central Pay Commission.
Just have a look the table is given below, the total Dearness Allowance given in their period of 5th and 6th Pay Commission…
| 5th CPC |
Additional DA Twice in a Year |
6th CPC |
| 0% |
|
0% |
| 4% |
1st Year |
2% |
| 8% |
|
6% |
| 13% |
2nd Year |
9% |
| 16% |
|
12% |
| 22% |
3rd Year |
16% |
| 32% |
|
22% |
| 37% |
4th Year |
27% |
| 38% |
|
35% |
| 41% |
5th Year |
45% |
| 43% |
|
51% |
| 45% |
6th Year |
58% |
| 49% |
|
65% |
| 52% |
7th Year |
72% |
| 55% |
|
80% |
| 59% |
8th Year |
90% |
| 61% |
|
100% |
| DA Merger |
9th Year |
No DA Merger |
| 14% |
|
107% |
| 17% |
|
113% |
| 21% |
10th Year |
119% |
| 24% |
|
(Expected) 125% |
| 74% |
Total |
125% |
|
|
|
| DA Merger |
+ Points |
125% |
Source: www.cgstaffnews.in
Wage Negotiation between IBA Workmen Unions and Officers’ Association – 10th BPS – 2nd and 4th Saturday as Holidays, DFS Order and Notification
F.No.4/117/2015-IR
Government of India
Ministry of Finance
Department of Financial Services
Jeevan Deep, IIIrd Floor,
Parliament Street. New Delhi
Dated the August 20. 2015
To
1. Dy. Governor,
Reserve Bank of India.
Central Office,
Mumbai.
2. Chief Executive,
Indian Banks’ Association,
Mumbai.
Subject: Wage Negotiation between IBA Workmen Unions and Officers’ Association – 10th BPS – 2nd and 4th Saturday as Holidays
Sir,
I am directed to refer to IBA’s letter No. HR&IR/XBPS/3/975 dated 25th June, 2015 and RBI’s letter No.DBR(Leg.)No.953/09.04.022/2015-16 dated 15.7.2015 on the subject cited above and to enclose herewith a copy of the Notification(in English and in Hindi) regarding declaring every second and fourth Saturday of every month as public holiday for banks in India with effect from 1st September, 2015.
2. RBI and IBA are requested to take necessary action accordingly.
3. This issues with the approval of Competent Authority.
Yours faithfully.
Encl. As above
(Manish Kumar)
Under Secretary to the Government of India
To be published in the Gazette of India, Extra ordinary, Part II, Section 3, Sub-section (II)
MINISTRY OF FINANCE
(DEPARTMENT OF FINANCIAL SERVICES)
NEW DELHI, THE 20 AUGUST ,. 2015
S.0. – (E) In exercise of the powers conferred by section 25 of the Negotiable Instruments Act, 1881 (26 of 1881), the Central Government hereby declares the second and the fourth Saturday of every month as publlc holiday for banks In India, whether or not such banks are Included In the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), with effect from the 1st day September, 2015.
sd/-
(Mohammad Mustafa)
Joint Secretary to the Government of India
To
The Manager,
Government of India Press,
Ring Road, Mayapuri,
New Delhi -1 10064.
Canteen Stores Department
Canteen Facilities to Defence Personnel, Ex-servicemen
CSD Canteen: FREQUENTLY ASKED QUESTIONS
Q1 Do I have to pay any penalty for making new Smart Card after I have lost the old Card?
A1 (a) Penalties on Loss of Smart Cards Yes, In case of loss of Canteen Smart Card (Grocery/Liquor) by an individual following penalties will be levied in addition to costs of Smart Card and penalty amount will be merged with the URC profit :-
| Loss/Card |
Liquor |
Grocery |
| First Time |
Rs. 500/- |
Rs. 500/- |
| Second and subsequent Time |
Rs. 1000/- |
Rs. 1000/- |
Note. Chairman of the URC may wave off the Penalty depending upon the genuineness of the loss, in exceptional cases.
(b) There have been few cases of misuse of lost Smart cards. Therefore, loss of Canteen Smart Card is being dealt with strictly. In addition to person applying afresh for the card and giving wrong details, responsible scrutinizing staff/ countersigning authority will also be held accountable for wrong details in application for fresh Individual Smart Card.
Q2. Why restrictions are laid by some URCs on entry as well as issue of items to authorized persons?
A2. Misuse of canteen facilities is detrimental to the welfare of the genuine buyers. This needs to be curbed. Sometimes temporary restrictions are also put on place due to short supply of certain items or excess purchase of certain items by customers during particular season. The responsibility to manage the available inventory as also to curb misuse of facility, lies with the Chairman of URCs. In order to streamline and further refine the procedures, following is being implemented:-
(a) No Bulk Purchases by Individuals. No bulk purchases by an individual are permitted. URCs can lay down restrictions at local level to ensure the same. However, all bulk purchases, if valid reasons necessitate, will be supported by one time use written permission of the Chairman of URC.
(b) Strict check on entry and allowing only authorized persons to avail canteen facilities. Entry into any URC will be purely Smart Card based by personal appearance.
Q3 . What are orders on the issue of liquor?
A3 Liquor Quota. There is no change in liquor authorization. However, it is limited as per brand/type for better planning and control over quality & quantity. As such, following restrictions are presently enforced:-
(i) Officers. Scotch whisky permitted up to 50% of total entitlement.
(ii) JCOs & Eqvl. Not more than three Whisky bottles including one Scotch Whisky of the entitlement.
(iii) Others. Not more than two Whisky bottles including one Scotch Whisky of the entitlement.
Note. This restriction will be revised by the DDGCS from time to time as per requirement, availability of funds and stock position.
Q4 What is the entitlement for purchase of car?
A4 Four Wheelers(Car). An entitled person based on his purchasing power will be entitled to purchase first or subsequent car only after years and up to capacity as mentioned below:-
(a) Officers (Incl Retd) – Four years and upto 2500 cc capacity.
(b) JCOs/Eqvl granted Hony Commission (lncl Retd) – Seven years and upto 1500 cc capacity
(c) JCOs/OR & Eqvl (Incl Retd) – Once while in service and once after retirement up to 1400cc capacity.
Q5. Is there a minimum service limit for purchase of car by JCOs/ OR?
A5. Yes, A JCO/ OR should have rendered min 15 years of color service to apply for a car.
Q6. What are restrictions on purchase of a 2-Wheeler?
A6 All categories (Incl Retd) can buy a 2- wheeler after every three years. .
Q7. Is there any restriction on AFD items?
A7. AFD Items like Refrigerator, TV, Washing Machine etc can be purchased after every three years by all categories.
Note: Control Over AFD Items will be reviewed from time to time as per requirement, availability of stores and budgetary situation of CSD.
Q9. What are the orders for entry into a URC?
A9. Entry into any URC will be purely Smart Card based by personal appearance. In case a particular Offr/JCO/OR/Equivalent is unable to present himself personally due to valid reasons like old age or acute medical problem, a permission, signed by the Chairman/ CO/OC of the unit/ establishment running the URC must accompany the Smart Card with photo of the authorized person carrying it. Validity period and genuineness of requirement of such permission will be decided by the Chairman of the URC on case to case basis.
Source: http://indianarmy.gov.in/
Seventh Pay Commission may not lower retirement age
New Delhi: The Seventh Pay Commission is not likely to take a major decision of the lowering of the retirement age for central government employees to 58 years old, two years earlier than what the present law requires.
Since studies show that Indian people reaching the age of 50 years old tend to suffer from a decline of cognitive and physical abilities.
That older employees also find it harder to adapt to modern technology, which is must required to develop the nation.
The youth people in country have increased and so the pay panel may want to focus on Youth unemployment as, “More retirees would mean more job openings for the youth.”
But no discussion has made on the proposal to either raise or reduce the retirement age of central government employees from the present 60 years in the pay panel till date.
The pay panel is likely to keep the retirement age of central government employees unchanged at 60 years, a senior official of the pay panel said.
“We are not going to either recommend lowering or raising the retirement age. If we lower the age limit, the pension burden will bust the government’s medium-term fiscal targets,” he added.
However, the Seventh Pay Commission urged the finance ministry to extend the deadline by a month to submit its recommendations. Accordingly it is expected to submit its report by the end of September. The time allotted for the commission ends this month.
“There are some data points that are missing, which we hope to get by this month end. We are trying to submit the report by 20 September,” the official of the pay panel also said.
The Pay panel report may be effective from by April 2016.
TST
Free Health Check-up Camp for the benefit of Central Government employees and their dependents at Samaj Sadan, Grih Kalyan Kendra, Peshwa Road, New Delhi on 22nd August,2015 (10.00AM to 2.00PM).
No.12015/1/2015-Welfare
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training
(Welfare Section)
Lok Nayak Bhavan, Khan Market
New Delhi, Dated 20.08.2015
CIRCULAR
Subject: Free Health Check-up Camp for the benefit of Central Government employees and their dependents at Samaj Sadan, Grih Kalyan Kendra, Peshwa Road, New Delhi on 22nd August, 2015 (10.00 AM to 2.00 PM).
Department of Personnel and Training, Government of India is organizing Free Health Check-up, Eye Check-up and Blood Donation Camps at Samaj Sadan, Grih Kalyan Kendra, Peshwa Road, New Delhi on 22nd August, 2015 (10.00 AM to 2.00 PM)
for the benefit of Central Government employees and their dependents. Details of the Camps are as follows:-
| S.No. |
Types of Check-Ups |
In Association with |
| 1. |
Health Check-Up
(This includes free OPD
consultation by renowned Doctors
on Cardiac, Orthopedics and
Gynecology/Free tests of Sugar
(Randum), BP, Height, Weight,
BMD, PAP Smear & ECG. |
Rockland Hospital, New Delhi. |
| 2. |
Eye Check-Up |
Sha Sights Centre, New Delhi |
2. All are requested to avail the facility of free Health Check-up and Eye Check-up Camps.
(Chirabrata Sarkar)
Under Secretary (Welfare)
To,
All Ministries/Department of Government of India.
Source: http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02adm/check-up.pdf
MERGER AND UPGRADATION OF GRADE PAY LDC & UDC – T.K.R. Pillai
T.K.R. Pillai, General Secretary of All India Association of Administrative Staff(Non Gazetted) expressed his view on an order recently published by DoPT regarding the chage of Nomenaclature of LDC and UDC in Central Secretariat. We reproduced the article and given for your ready reference…
CHANGE OF NOMENACLATURE OF LDC & UDC IN CENTRAL SECRETARIAT
DOPT HAS DECIDED TO CHANGE THE NOMENCLATURE OF LDC & UDC OF CENTRAL SECRETARIAT OFFICES. BUT NOTHING IS HEARD IN RESPECT OF CHANGE OF NOMENCLATURE/MERGER OF LDCS AND UDCS OF SUBORDINATE OFFICES. IT IS TO BE NOTED THAT IMMEDIATELY BEFORE THE FINALIZATION OF 6TH PAY COMMISSION REPORT, GOVERNMENT HAD UPGRADED THE PAY SCALE OF THE ASSISTANT IN CENTRAL SECRETARIAT FROM RS. 5500-9000 TO 6500-10500 THAT PAVED THEM TO GET AN EDGE OVER THE PAY OF THE ASSISTANTS OF SUBORDINATE OFFICES. LIKEWISE IT MAY BE A MOVE TO GIVE MORE BENEFITS TO THE LDC & UDCS OF CENTRAL SECRETARIAT IN 7TH CPC.
IT IS TO BE NOTED THAT THIS ASSOCIATION HAS CONTINUOUSLY RAISING THE MERGER AND UPGRADATION OF GRADE PAY LDC & UDC. THE CASE WAS SENT TO JCA SECTION WITH RECOMMENDATION BY THE DOPT BUT THE JCA RETURNED THE SAME TO DOPT WITH A REMARK THAT “THIS IS NOT AN ISSUE OF ANOMALY AND NO SUCH ITEM WAS BEFORE THE NATIONAL ANOMALY COMMITTEE” AND SUGGESTED THAT ESTABLISHMENT II MAY PROCESS THE CASES WITH THE CASE OF LDC & UDCS OF CENTRAL SECRETARIAT IN CONSULTATION WITH THE MINISTRY OF FINANCE. BUT DOPT HAS RETURNED THE CASE TO THIS ASSOCIATION WITH A DIRECTIVE TO TAKE UP THE SAME WITH MINISTRY OF FINANCE DIRECTLY.
IT IS WORTH TO MENTION HERE THAT JCA HAD RETURNED THE CASE WITH A PLEA THAT THIS IS NOT AN ISSUE OF ANOMALY AND NO SUCH ITEM WAS BEFORE THE NATIONAL ANOMALY COMMITTEE. WHEREAS ON 9TH JUNE WHEN THE LAST MEETING OF THE NATIONAL ANOMALY COMMITTEE HELD, ITEM NO. 4 –”UPGRADATION OF PAY BAND AND GRADE PAY OF LDCS AND UDCS” WAS DISCUSSED. WHEN THERE WAS NO ITEM WAS PENDING WITH THE JCA, THEN HOW THIS ITEM SURFACED IN THE ANOMALY COMMITTEE MEETING. SIMILARLY THE CONCERNED OFFICER IN DOPT HAD ORALY INFORMED ME THAT THE CASE OF LDC & UDC WAS RETURNED BECAUSE HIS SECTION IS DEALING THE CASES OF LDC & UDC OF CENTRAL SECRETARIAT ONLY AND THE LDC & UDC OF CENTRAL SECRETARIAT HAD NOT DEMANDED THEIR PAY UP-GRADATION.
THE STATE OF LDCS POSTED IN SUBORDINATE OFFICES HAD DISCUSSED IN THIS WEBSITE SEVERAL TIMES. THEY ARE ALLOCATED WITH WORK WORTH TO BE ALLOCATED TO UDC/ASSISTANT AND IN MOST OF THE CASES OFFICERS ARE TAKING DECISION ON THE FILE PUT UP BY THE LDCS WHERE AS IN CENTRAL SECRETARIAT SUCH FILES INITIATES BY UDC/ASSISTANT LEVEL. THUS IT IS HIGH TIME THE GOVERNMENT SHOULD TAKE A DECISION ON THE UPGRADATION OF GRADE PAY AND NOMENCLATURE OF LDC & UDCS WORKING IN THE SUBORDINATE OFFICES BEFORE THE FINALIZATION OF PAY COMMISSION REPORT.
Jammu and Kashmir government announces 6% hike in DA of its employees
Srinagar: Jammu and Kashmir government today announced a six per cent hike in the Dearness Allowance (DA) of its employees with effect from January this year.
The decision was taken at a cabinet meeting chaired by Chief Minister Mufti Mohammad Sayeed here.
Announcing the cabinet decisions at a press conference here, Education Minister Nayeem Akhtar said “we announce a hike in DA from 107 to 113 from January this year.”
“This is in fact for the first time that the government employees are getting DA without resorting to agitation,” Akhtar, who was also flanked by Finance Minister Haseeb Drabu, said.
He said it was a practice here that the DA was not released till there was an agitation.
“Today as part of its duty, the government had taken a decision, which also belies the rumours about money not coming (from centre) and also gives out a message that the system is getting streamlined in the state,” he said.
Drabu said the idea behind the decision was to keep pace with the centre announcing DA for its employees.
“We have announced DA from January 15 to July 15 (and will be paid to the employees) through Provident Fund route, post that it will in cash, thereby we are moving to a system whereby the nearest amount will be given in cash,” he said.
He said the large part will be in cash.
“In respect of employees who are at the new pension scheme, the installments will be in cash. Financial implications is about Rs 285 crores for the year. Of that Rs 240 crore is salary and the rest is pension. We have made provision for that in the Budget.
“The idea is to build system. In the last three-four months, we have got a lot of liabilities at various levels and we are trying to work out a system wherein there will be a transparency and finance will not be a constraint for development activities,” the finance minister said.
PTI
CSD facilities for Retired employees – MoD Order with Application Forms
CSD CANTEEN FACILITIES TO RETIRED DEFENCE CIVILIANS
1. Refer Army Order 02/2006/QMG
2. Government of India has decided to extend the CSD Canteen facilities to the Retired Defence Civilian Employees vide MoD letter No. F.No.8(14)/2015-D(Mov) dated 31 Jul 2015.
3. Eligibility : Retired Defence Civilian Employees of following departments who were not entitled to avail CSD facilities will now be entitled for CSD facilities:
(a) Ministry of Defence including those working in their respective attached offices and those working in lower military formations.
(b) Defence Audit Departments.
(c) Executive Officer Cantonment Board
(d) Hindutan Aeronautics Ltd personnel retired from Air Force Station Hyderabad, Jorhat, Air Force Academy, Dundigal (Hyderabad) and Air Force Station Yelahanka(Bangalore)
(e) Indian Defence Accounts Services.
(f) Secretariat Border Roads Development Board and HQ Director General Border Roads.
(g) Retired employees of Canteen Stores Departments who are getting pension from CSD Fund.
(h) MES Employees.
4. Entitlement : They will be entitled for only Grocery Stores. No Liquor will be authorised.
5. Validity : The cards will have a validity of 10 years, from the date of issue and will be renewed every year.
6. Process for applying for Retired Defence Civilian Employees Card : All Retired Defence Civilian Employees will apply for the Smart Card to the URC through which they want to avail the Canteen facilities after authentication of the application.
7. Authentication : The application form will be authenticated for its correctness by the Department from which the employees has retired. The form will be countersigned by an officer not below the Rank of Under Secretary or equivalent.
8. Documents to be submitted to Department URC : The following attested documents will be submitted to the URC :
(a) Application for Canteen Smart card duly countersigned by the competent authority.
(b) Govt order for Retirement.
(c) Copy of Pension Payment Order (PPO)
(d) Address Proof and Copy of PAN card.
(e) Payment of Rs.135 to the URC.
9. Guidelines for Authenticating Authority:
(a) Each concerned department shoud appoint officer authorised to countersigned and promulgate orders and forward details to this office.
(b) Countersigned officer will verify that all columns are filled correctly prior to countersigned.
10. Guidelines for URC : Vetting of application will be done at URC for correctness. The following will be checked :
(a) That application is filled in all respect and no column is left blank.
(b) Signature of Countersiging authority.
(c) All personal particulars are checked for correctness with PPO and other supporting documents.
(d) In case an application is rejected the same will be informed to the applicant.
(e) New card will be sent by M/s. Smart Chip Ltd to the URC for issue to applicant. URC will check details with individuals Departmental retired identity Card prior to issue of new Canteen Smart Card.
(f) Since large number of applications are likely to be received intially at the URCs, the URC Manager must exercise due diligence while scrutinising and verifying the applications.
11. Guidelines for SCL : The following will be ensured ;
(a) All applications are sent by CCTS to M/s. Smart Chip Ltd, at the earliest.
(b) On receipt of application check for correctness with existing records through old Grocery Card Number.
(c) Verify applicants personal details through PAN No. on www.verifypan.in
(d) Ensure previous card of applicatin is hotlised prior to handing over of new card for Retired Defence Civilian Employees.
12. The application form (Blue Color) for Retired Defence Civilian Employees attached as Appendix will be made available in the URCs at the earliest by M/s. Smart Chip Ltd.
13. This letter be given vide publicity by displaying at prominent places like URSs, Station HQs, CAO and other controlling HQs.
Click to Download the ‘CSD Smart Card Application Format’
Page -1
Page -2
Click to view the order
Page -1
Page -2
Page -3
Prime Minister’s Assurance on One Rank One Pension
‘After hoisting the national flag at the Red Fort, the Prime Minister addressed the nation. Here are excerpts from the speech.’
“A number of governments have come and gone before us. They have all dealt with the One Rank One Pension problem. The scheme was presented to all of them. Each of those governments has given small assurances and promises on it, but the problem was never solved.
“I too give my word on this occasion, but this is not the word of an individual. This is the promise of this country of 125 crore people and I’m saying this as I stand in front of the tricolour at the Red Fort. We will accept and implement the One Rank One Pension policy. Talks are on with a number of organizations regarding this.
“The results of this talk will be in such a manner that it will support the development of one and all. Based on the talks, I’m convinced that good results will come out of it.
“Let me assure once again that One Rank One Pension policy has been accepted by the government. We will implement it after analyzing the main critical issues involved in it and talking to the stakeholders concerned.”
Source: http://cgemployeesnews.in/
Demand of One Rank One Pension by Defence, Railway, CG Employees vs New Pension Scheme: Opinion on LiveMint
How we should think about the One Rank One Pension issue
One parity we should be discussing is parity with central government employees who have been moved to a defined contribution scheme from defined benefit since 2004
Each of us has some link at a family level, direct or indirect, with the armed forces. A parent, a brother, an uncle, a cousin, a son, or a nephew. At a personal level, we know the first-hand stories of a wife not knowing if an ‘exercise’ will end in a dead husband. Of a father not knowing if the next landmine will have his son’s name on it. At a societal level, we can’t forget the border battles, and much closer home, the comforting presence of the army trucks and the green helmets as they rolled in after the 1984 riots to calm fires in West Delhi residential clusters. Can’t forget that when everything else fails in civic life, the army is called in to restore order. The army is called in not just to maintain order, but even for things like making that foot over-bridge that kept collapsing before the Commonwealth Games. And we have to only look over to our immediate northwest to see what damage an army can do to a nation.
How can the nation then say no to the one demand that the men in uniform are making—give us enough when we remove the uniform and lead civilian lives? The heart says it should be done. So why the delay? It could be that the answer is not always that simple. The One Rank One Pension (OROP) issue that seeks to index old pensioners to benefits that current ones get, has got all the ingredients of a perfect bomb: an emotive issue, kicked around by cynical politics of an outgoing government promising something it knew it would not be responsible for, an aspiring change maker who did not understand the multi-dimensional issue that OROP is and making a promise to implement it. And now a public stand-off between the veterans and the government.
Why is the issue so difficult to deal with? Why not just give the armed forces what they want? The issue is complicated on two counts (there are many other issues, of course, but I think these two are key). One, the country does not have the money over time to fund a rising bill of defined benefit (DB) pensions. DB pensions give the person retiring a certain percentage of his last salary, keeping in mind the number of years worked. DB schemes are ultimately un-fundable since declining populations find fewer people funding larger and larger numbers of the retired. Many countries across the world are in the process of moving away from DB plans. Two, and even more disastrously, OROP will open the doors for similar demands from other groups. Do Central Reserve Police Force soldiers deserve any less? What about the Indo-Tibetan Border Police? And the police? The first off the block has been the railway unions demanding OROP. “Railwaymen are performing dedicated service for the nation. Railway is the lifeline of the country. Employees are working round the clock across the country,” the general secretary of All India Railwaymen’s Federation was quoted as saying in a newspaper report. Other unions are waiting and watching, and once OROP is announced, expect a deluge of protests and court cases for parity.
The one parity we should be discussing today is parity with central government employees who have been moved to a defined contribution (DC) scheme from a DB since 2004. DC schemes put control of the future in the hands of the individual and what the state needs to do is design an efficient system that is fair to the social security seeker. India has a state of the art DC vehicle in the National Pension System (NPS). The costs are wafer-thin, the products are few so as to not freeze choice, and there is no fund manager risk since equity investing is restricted to index funds. For those unwilling or unable to choose the right fund, there is a default lifecycle fund that reduces equity as the person ages and moves into safer debt. The government should use the current focus on pensions to negotiate the move from DB to NPS for all categories of pensioners—those already on a DB, but, as was done with the civil services, from a given date, all new employees move to the NPS.
The armed forces have almost seven decades of goodwill banked, but an uncompromising demand irrespective of the consequences may change this equation. Unhappily for us, there are no recent academic studies that show what state pensions cost the nation. There is a 2006 paper that has some estimates (which are scary) and can be read here: http://mintne.ws/1J0DNWx . Even this old study clearly showed that DB pensions are unsustainable. Now to open the door for OROP for all categories of government employees will be a fiscal disaster for India. A more middle-of-the-road solution may be the only one that is sustainable without derailing the future of the country. No person who has defended the country against the dushman will want to see the country ship out gold one more time because OROP has opened the doors to a future that is unsustainable. If a middle-of-the-road solution is not acceptable, we only need to look west once again. This time, a little further than our immediate neighbour, to Greece, and see what runaway benefit bills can do to a nation. And because of the colour coding rules of the world, India should not expect the global multilateral agencies to expend the same kid gloves that Greece has been dealt with.
Monika Halan works in the area of financial literacy and financial intermediation policy and is a certified financial planner. She is editor, Mint Money, Yale World Fellow 2011 and on the board of FPSB India. She can be reached at expenseaccount@livemint.com
Seventh Pay Commission seeks one-month extension from finance ministry
The panel headed by A.K. Mathur is unlikely to recommend lowering of the retirement age or push for lateral entry and performance-based pay
New Delhi: The Seventh Pay Commission, headed by justice A.K. Mathur, has sought a one-month extension from the finance ministry and is preparing to submit its report by the end of September. The commission is unlikely to recommend the lowering of the retirement age as rumoured earlier or push for lateral entry and performance-based pay.
The commission, set up once in every 10 years to review pay, allowances and other benefits for central government employees, was appointed by the previous government on 28 February 2014 and was asked to submit its report in 18 months, which falls on 31 August.
“There are some data points that are missing, which we hope to get by this month end. We are trying to submit the report by 20 September,” an official of the commission said, speaking on condition of anonymity.
The Sixth Pay Commission had submitted its report a little ahead of its deadline on 24 March 2008. The revised pay scales were implemented retrospectively starting 1 January 2006, while recommendations relating to allowances were implemented prospectively.
The finance ministry apprehends that salary and pension expenditure will both rise by around 16% in 2016-17 as a result of the implementation of the Pay Commission recommendations. This may allow capital expenditure to grow by no more than 8% during the year, leaving little room to aggressively push for an infrastructure build-up.
“The Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will also be spanning out in this period. Thus, in the medium-term framework, the fiscal position will continue to be stressed,” the finance ministry said in the 2015-16 budget presented in February.
The official cited earlier said the Pay Commission report needs to be effective from 1 January 2016, or by April 2016 at the latest.
“It will be the government’s prerogative when to implement it. But beyond 1 January 2016, there will be arrears. But then, the government will be subject to criticism. Earlier, they had hidden behind Pay Commissions giving late reports,” he added.
However, the official said the commission is likely to maintain the status quo on the retirement age of central government employees, currently 60 years. “We are not going to either recommend lowering or raising the retirement age. If we lower the age limit, the pension burden will bust the government’s medium-term fiscal targets,” he added.
Asked whether government has sent any directives to the commission on the kind of hike it can afford, the official said the message it has got broadly is to keep the hikes low. “Merge the basic with dearness allowance, don’t stretch it beyond—that is the message. But that is a good message for the government to send. But there is no pressure otherwise. In fact, there is a lot of cooperation,” he said.
The official said merging basic pay with dearness allowance, which is mandatory, would itself mean a 155% rise for central government employees. “We have to decide how much to give above that. So, it will look good if you compare basic to basic,” he added.
On whether the commission will recommend performance-based pay bands, he said it will make some feasible recommendations, though he couldn’t guess if the government would accept them. The Sixth Pay Commission had also recommended performance-based pay revisions, but the government is yet to implement them.
“Eighty-eight percent of central government employees are industrial and non-industrial workers working with railways, post, paramilitary and army. So, performance-based pay revision is the wrong instrument for them. Biggest growth in government services is in paramilitary forces, where staffs in Central Reserve Police Force and Central Industrial Security Force have gone up by 75-80% in the last 10 years. By the time we have dealt with them, the bureaucracy is an afterthought. It does not affect anything,” he added.
D.K. Joshi, chief economist at rating agency Crisil Ltd, said the government is expected to be restrained in its pay hikes this time around, given the low inflation level and tepid growth momentum. “The last two Pay Commissions had significantly bumped up demand and fiscal deficit. But the government is unlikely to be populist this time. It has already showed restraint in the hike in minimum support prices for farmers,” he said.
However, Joshi said the Pay Commission will have a permanent income effect as well as a one-time impact through the payment of arrears, which will lead to increase in demand for consumer durables.
Read at: Livemint
Display details of the vacant dwelling units/unsold dwelling units in CGEWHO’S Housing Scheme in all Central Ministry’s web site through NIC: MHUPA Instructions
F. No. I-19011/6/2015-AA/FTS-13680
Government of India
Ministry of Housing & Urban Poverty Alleviation
(A.A. Section)
Nirman Bhawan, New Delhi
Dated: 18 August, 2015
Sub: Display CGEWHO’S Housing Scheme in all Central Ministry’s web site through NIC -Reg.
Based on the deliberation in the Executive Committee Meeting of Central Government Employees Welfare Housing Organization (CGEWHO), a decision has been taken to web publish details of the vacant dwelling units/unsold dwelling units in CGEWHO’S Housing Schemes in official website of different Ministries. Accordingly, CGEWHO has sent detailed web-link of its housing schemes where vacancies exist. A copy of the same is enclosed for appropriate action.
Encl. As above.
(A.N. Jha)
Under Secretary to the Govt. of India
Source: http://mhupa.gov.in/office%20order/Office_Order_18_08_2015.pdf
Big Expectations from 7th CPC and Low possibilities projected by Union Finance Minister!
Honourable Finance Minister Shri.Arun Jaitely had spoken about the possible impact of 7th CPC recommedations in Parliament.
The Speech is critically reviewed by Comrade Elangovan of DREU.
I am reproducting the comments of Comrade Elangovan for the consideration of our members:
7TH CPC WILL INCREASE CENTRAL GOVERNMENT PAY ONLY BY 15% – SHOULD WE ACCEPT?
R.ELANGOVAN,
WORKING PRESIDENT, DREU
1. The Medium Term Expenditure Framework statement has not yet been uploaded in Finance Ministry’s website.However I have taken the figures provided by print media including The Hindu.As per their statement the expenditure on salaries will rise by 9.56% in the fiscal 2015-16 as a result of 7th CPC implementation over the normal estimated expenditure in the 2015-16 budget to Rs.100619 crores. This means that the expenditure projected was Rs.91,839cr which if increased by 9.56% becomes Rs.100619 crores.
2. While going through the earlier framework statements I have come to the conclusion that the ‘salaries’ shown is pay with normal increments plus DA projected.
3. As per the estimated strength and provision there of statement laid as part of finance budget,the normal projection as PAY was Rs.60731 cr and so DA is Rs 31,108 as deducted from Rs 91 839 cr.The budget document does not give the DA expenditure separately. It gives the total expenditure on all allowances. I have therefore arrived at the figure based on calculations. However I have sought the expenditure on DA, HRA, and Transport Allowance separately through RTI.
4. The increase proposed is Rs.100619 cr from Rs.91,839 cr which means that there will be an increase of Rs.8780 cr. There won’t be any DA after 1-1-2016 up to 31-3-2016 in the fiscal 2015-16.Therefore the whole increase is on basic pay in this fiscal.
5. As we have already seen that the basic pay is Rs.60731 cr. the increase of Rs.8780 cr. is over this Rs.60731.This increase is 14.45% only.The expenditure projected for 2016-17 is Rs.1,12,000cr which is Rs.11,400 more over 2015-16 which works out to 11.32%. This is due to Increment, DA,HRA, TRA etc.The projection for 2017-18 is 1,16,000 cr.
6. If 40% of Basic Pay is to be given,the increase of expenditure in the fiscal 2015-16 must be Rs. 24000 cr as against the Rs. 8780 cr. The demand of JCM Staff side is that there must be an increase of 371% of basic pay as on 1-1-2016. With the 119% DA we would be drawing 219% already. The real increase demanded is 152% of Basic Pay. So not the 152% or 40% of 5th and 6th CPC is intended to be given to us. Only around 15% is going to be given. As The Terms Of Reference of 7TH CPC directs them to recommend only what is ‘FEASIBLE AND DESIRABLE’ to the Government.Now the Government In Parliament states only 15% is FEASIBLE AND DESIRABLE. ARE WE TO ACCEPT IT.? Some PSUs got 15%. But that is for 5 years. But for Central Government Employees it is for Ten Years. Are We To Accept?
7. Pension expenditure for civilian pensioners was estimated to be Rs.27,145cr and defence pension Rs.54,500 cr. The total is Rs.81645 cr. This is expected to go up to Rs.88521 cr, which is an increase of Rs.6876 cr.As there will be no Dearness Relief for the fiscal 2015-16 the increase is to be accounted only to Basic Pension.
8. I have sought the expenditure break up for dearness relief under RTI. However the rough calculation shows a near increase of same 15% in Pension.
9. The impact of 6th CPC on expenditure as per estimated strength of establishment and provision there of in respect of Central Government civilian employees was as follows:
ARREARS Rs 26084 cr. For three years mostly on Pay and DA regular PAY Increase per annum: Rs 8685 cr. These are actual figures.The 219% ofRs. 8685 cris Rs.19000 cr. EVEN THIS IS NOT GIVEN.
10.We must issue a warning to the government afresh demanding acceptance of our demand.I recall my earlier note where in I had quoted Bibek Debroy’s report that the 7th CPC will not be that destabilising to the Government as that of 6th CPC. GOVERNMENT PROVES THAT.
Source: http://postalpensioners.blogspot.in/
Categories:
6CPC, 7CPC Tags:
6th CPC, 7CPC, 7th CPC, 7th CPC implementation, 7th CPC News, 7th CPC Recommendations, CENTRAL GOVERNMENT CIVILIAN EMPLOYEES, Central Government Employees News, Central Government Pay, DA
Real wage hike the CG employee is expecting is more than 80% wage hike – Karnataka COC
The General Secretary of Karnataka COC Shri P.S.Prasad said in the article published in his official blog on 14.8.2015 that the real wage hike the Central Government employee is expecting is more than 80% wage hike. We reproduced full content of the article and given below for your ready reference.
Central Government Employees Salary Expenditurer
CLICK HERE FOR DETAILS
Comrades,
There are various reports of wage hike from 15.79 % to 40% in news papers/social media / web sites. It is once again clarified that none of these are correct. If we go through the statement of the Finance Minister in Parliament which says the salary outgo of central government employees will go up by 9.56 per cent to Rs 1,00,619 crore in current fiscal. The pace will increase further in 2016-17 at 15.79 per cent to Rs 1.16 lakh crore with the likely implementation of the 7th Pay Commission award, the outgo towards salary will further rise in 2017-18 to over Rs 1.28 lakh crore.
The budget 2015-2016 : if go through the budget of 2015 -16 http://indiabudget.nic.in/ub2015-16/rec/tr.pdf expected tax revenue is 14,49,490.56 (In crores of rupees).
The Central Government employees wage bill is around Rs 1,00,000 crore. The actual wage bill is now at just 8.5 % of the revenue collection please see . http://finmin.nic.in/pru/BROCHURE/brochure2012-13.pdf.
The budget allocation at just 9.56 % as projected is not the real wage increase by the 7th CPC the Central Government employee is expecting, may be the 7th CPC may give higher wage increase than the budget allocation. If we go through the budget expenditure of 2008-09 when the 6th CPC was implemented the 16% of the total revenue was spent as wages.
The Government being model employer should pay its employees the real wages. The real wage hike the Central Government employee is expecting is more than 80% wage hike. Due to following factors. even the 5th CPC the wage increase was about 40% and 6th CPC recommendations the wage increase was about 40% even after merger of DA in 2004, hence the wage increase during from 2004 & 2006 together was more than 60%. Now we should hope for better wage hike from the 7th CPC.
a) The actual price rise in last decade is more than 250% , DA we got is just 119% as on 1/7/15.
b) The DA merger has not taken place as on 1/1/14 which would have given a wage hike of 25%.
c) All Government agencies such as Banks, Public sector undertakings, LIC, State Governments etc are having wage revision in 5 years, we are having only wage revision of 10 years, the price rise is eroding the wage hike in just a few years.
Let us fight for the real wage hike.
Comradely yours
(P.S.Prasad)
General Secretary
Source: http://karnatakacoc.blogspot.in/
Success of the Strike 2nd Sep 2015 can Lead to Financial Benefits from 7th CPC
“7th CPC report release has been postponed, now let us to utilise the postponement period and put additional pressure on the 7th CPC and the Government of India to accept our justified demand’s of Central Government Employees such as minimum wage of Rs 26,000/- with effect from Jan 2014, fitment formula of 3.72 , five promotion scheme , date of effect of the 7th CPC from 1/1/2014 etc.”
7th CPC Report & 2nd September 2015 Strike
To
All Affiliates
COC Karnataka
Comrade,
The latest information is that the 7th CPC report will be submitted only in last week of September, we should not be too worried about this as the 7th CPC report was expected to submit its report in first week of September , the delay is only by few days only and that too the 7th CPC period is upto end of September 2015 as the 7th CPC was constituted on 28th Feb 2014 and allowed 18 months time the 7th CPC has started functioning only in April 2014 onwards.
The COC Karnataka meeting held on 4th August 2015 at RMS office has decided to participate in the 2nd September 2015 strike program as per the directions of the Confederation of CG Employees New Delhi. Now due to many reasons the 7th CPC report release has been postponed, now let us to utilise the postponement period and put additional pressure on the 7th CPC and the Government of India to accept our justified demand’s of Central Government Employees such as minimum wage of Rs 26,000/- with effect from Jan 2014, fitment formula of 3.72 , five promotion scheme , date of effect of the 7th CPC from 1/1/2014 etc.
Comrades if the 2nd September 2015 strike by the Central Government Employees is asuccess, then we can get more financial benefits from the 7th CPC and the Government of India apart from other important issues of unwanted labour reforms will be solved.
I request all comrades to prepare and educate the grass root leaders and employees on our demands. Conduct gate meetings / general body meetings from 11th August onwards.
Comradely yours
(P.S.Prasad)
General Secretary
Source-http://karnatakacoc.blogspot.in/
Revision of pension/family pension of pre-2006 pensioners of All India Services – Dopt order
G.I., Dept. of Per. & Trg., O.M.No.25014/1/2013-AIS-II, dated 17.08.2015
Subject: Revision of pension/family pension of pre-2006 pensioners of All India Services.
Sir,
I am directed to refer to the above mention subject and to say that in compliance to the judicial pronouncement, the Department of Pension & Pensioners vide its O.M. No. 38/37/08-P&PW(A) dated 30/07/2015 has decided that the pension/family pension of all pre-2006 pensioners/family pensioners may be revised in accordance with their Department’s O.M. NO. 38/37/08/-P&PW(A) dated 28/1/2013 w.e.f. 01.01.2006 instead of 24.9.2012.
The applicability of the provisions of the aforesaid O.M. dated 30/07/2015 to All India Services pensioners of pre-2006 has been considered by this Department and it is decided that provisions of the aforesaid O.M. of Department of Pension & Pensioners Welfare shall be applicable miutatis-mutandis to All India Service pensioners of pre- 2006.
Authority : www.persmin.gov.in
Change the name of posts of LDC, UDC and Assistants – Dopt seeks suggestion
DoPT seeks suggestions on the proposal under consideration to change the name of posts of LDC, UDC and Assistants of CSCS / CSS.
G.I., Dept. of Per. & Trg., O.M.F.No.21/12/2010-CS.I(P), dated the 17.08.2015
Subject: Proposal to change nomenclature of posts of CSCS/CSS
The undersigned is directed to say that this Department is considering a proposal to change nomenclature of posts of Central Secretariat Clerical Service (CSCS) and Central Secretariat Service (CSS), as under:
| S.No. |
Existing Designation |
Service |
Proposed Designation |
| (i) |
Assistant |
css |
Assistant Section Officer (ASO) |
| (ii) |
UDC |
cscs |
Senior Secretariat Assistant (SSA) |
| (iii) |
LDC |
cscs |
Junior Secretariat Assistant (JSA) |
2. All concerned may give their inputs/suggestions on the proposal latest by 18th September, 2015 at the e-mail id given below.
sd/-
(Parminder Singh)
Under Secretary to the Government of India
Tele:24642705
e-mail :
parminder.edu@nic.in
Authority: www.persmin.gov.in
Click to view the order
7th Pay Commission rumors – Recommendations on Holidays and Leave
‘Rumours regarding the 7th Pay Commission are ablaze like wildfire among Central Government employees.’
The hot topic of discussion among Central Government employees these days revolves around the holidays and their accumulation of EL. There is plenty of news to mull over.
During their entire service period, Central Government employees can accumulate 300 days of earned leave.These unutilized earned leave can be surrendered for encashment at the time of retirement.
According to unconfirmed reports, the 7th Pay Commission is keen on reducing the accumulation of 300 days earned leave limit. Rumours fix the number to most likely be either 120, 150, or 180 days.
Accumulation of 300 days earned leave is not a simple task to accomplish. At 10 earned leave days per year, one must put in 30 years of service to earn 300 days earned leave. It is worth mentioning here that National Council JCM Staff Side had to fight a long battle to earn the privilege.
Unconfirmed reports also claim that the number of leave days too is likely to be reduced. Some even say that the 7th Pay Commission is giving serious thoughts about abolishing the gazette-leave holidays and suggest to the Government that only three national holidays be given henceforth.
There is also a flood of information about issues like salary hike and retirement age. Unfortunately, nobody is in a position to either completely trust or dismiss these bits and pieces of information.
Source: www.cgstaffportal.in
OROP: Railway employees also demand One Rank One Pension
New Delhi,: Now, Railway employees too have raised the demand for One Rank One Pension, saying that they should not be ignored as like the defence personnel they also have dedicated their services to the nation.
The issue of OROP for railway employees was discussed in the Seventh Pay Commission and we will raise the issue again, Shiv Gopal Mishra, General Secretary of All-India Railwaymen’s Federation told PTI.
Currently there are 13.26 lakh employees working in the Railways.
“Railwaymen are performing dedicated service for the nation. Railway is the lifeline of the country. Employees are working round the clock across the country,” Mishra said.
He, however, said servicemen in defence forces should get OROP but the same principle should also be applicable to Railways.
“Our brothers in defence should get it as soon as possible. But at the same time we should also not be ignored,” AIRF leader said.
Expressing disappointment over Prime Minister Narendra Modi’s Red Fort speech, Mishra said “PM should have offered something concrete on the OROP issue. Though there were expectations for an announcement on the issue, nothing happened.”
PM, in his Independence day speech, said in-principle the government has accepted the demand for OROP but it is a long pending issues, and discussions are underway and in the last stages.
Taking on lawmakers, he said, “MPs are increasing their salaries whenever they want to increase. They even get full pension irrespective of their term or attendance.
PTI
