Government provides fund for pay commission implementation in Budget

Advertisement

Government provides fund for pay commission implementation in Budget

Central Government provided the fund of excess Rs 28,300 crore for the implementation of Seventh Pay Commission recommendations on Monday in the Budget estimates of fiscal 2016-17, presented by the Finance Minister Arun Jaitley.

The government has provided a fat allowances bill of Rs 88,932 crore in the Budget, almost as much as the total basic pay bill of Rs 90,598 crore for one crore central government employees, including pensioners.

According to the budget estimates of 2016-17, the total pay bill has increased by Rs 28,300 crore to Rs 90,598 crore in the next financial year as compared to Rs 62,230 crore in 2015-16.

The allowances bill has gone up by Rs 37,000 crore, taking the amount to Rs 88,932 crore in next fiscal.

The total provision towards pay, allowances and travel expenses of central government employees has been to the tune of Rs 1,83,935 crore in the next fiscal as against the Rs 1,18,248 crore in this financial year.

The government has made provisions as per the recommendations of the Seventh Pay Commission, though the actual disbursement would depend on the suggestions of the empowered committee of secretaries which has been constituted for the implementation of the Pay Commission recommendations.

The Pay Commission had calculated the total impact of the increase in salaries and allowances at Rs 1.02 lakh crore of which it had estimated the increase in pay to be at Rs 39,100 crore and allowances at Rs 29,300 crore. In percentage terms, the overall increase according to the Pay Commission was about 23.5% where the increase in pay was 16% and the allowances at 63%.

The significant jump in allowances could be on account of house rent, which has been recommended at 24% of the basic pay, besides others. The minimum pay as per the pay panel report was set at Rs 18,000 and the maximum at Rs 2.25 lakh for secretary-level officers. Accordingly, the house rent allowance (HRA) for secretaries would be more than Rs 56,000.

However, this is not the first time that allowances bill is likely to be as much or more than the pay bill. In 2014-15, the salary bill as per actual expenditure was Rs 53,371 crore while the allowances was Rs 76,613 crore.

Inputs with TNN

Download Central Government Employees News iOS App . Click here Cg News for iPhone, iPad & iPod Touch app to download in your device.
Stay updated on the go with CENTRAL GOVERNMENT NEWS App. Click here Cg news for Phones app to download it for your device.

Be the first to comment - What do you think?  Posted by admin - March 2, 2016 at 7:37 pm

Categories: 7CPC   Tags: , , , ,

NJCA will meet again on 7.3.2016

NJCA Circular – NJCA will meet again on 7.3.2016

NJCA
National Joint Council of Action
4, State Entry Road, New Delhi – 110055

No.NJC/2015/7th CPC

March 2, 2016

To
All Constituents of NJCA,

Dear Comrade,
The NJCA met today – reviewed the discussions at the Standing Committee Meeting with the Cabinet Secretary held on 1.3.2016 – (6.45 to 8.45 PM). The NJCA has decided to continue with the preparation of the Strike.

The NJCA will meet again on 7th March evening.

Yours fraternally,
sd/-
(Shiva Gopal Mishra)
Convener

Source : Confederation

Be the first to comment - What do you think?  Posted by admin - at 7:32 pm

Categories: 7CPC   Tags: , , , ,

Union budget 2016-17 and 7th CPC demands

Union budget 2016-17 and 7th CPC demands

“Main consideration in the private and public sector being ‘profit’, and in Central Government it is “service” even through Railways, Income Tax & Central Excise are revenue earning departments, hence an equal comparison with the Government is not going to be ever possible. Performance for the Government is usually not measured in terms of profit, but in terms of achieving societal goals.”

Union budget 2016-17 and 7th CPC demands

The Union budget 2016-17 presented by Hon’able Finance Minister in the parliament on 29th Feb 2016 has the total expenditure in the Budget for 2016-17 has been projected at Rs 19.78 lakh crore, consisting of Rs 5.50 lakh crore under Plan and Rs 14.28 lakh crore under Non-Plan. The increase in Plan expenditure is in the order of 15.3% over current year.

The fiscal deficit in RE 2015-16 and BE 2016-17 have been retained at 3.9% and 3.5% of GDP and the growth of GDP has now accelerated to 7.6%. This clearly shows that the finance of the Central Government is in good shape.

The Hon’able Finance Minister in the parliament on 29th Feb 2016 has stated that the next financial year 2016-17 will cast an additional burden on account of the recommendations of the 7th Central Pay Commission and the implementation of Defence OROP.

Let us examine the last year spending on various ministries

7th cpc coc karnataka
This clearly shows many ministries have not spent the money allocated, this due to mainly the shortage of talented staff and various policies’ of the Government.

Today, the weakest link in respect of any government policy is at the delivery stage. This phenomenon is not endemic to India. Internationally also, there is an increasing emphasis on strengthening the delivery lines and decentralization with greater role being assigned at delivery points, which actually determines the benefit that the common citizen is going to derive out of any policy initiative of the government.

More the talented persons are there in Government services, more the delivery of the government schemes will be there, thus the Government machinery will be more effective and common man will benefit a lot.

The 7th CPC has not improved the service condition of the Central Government employees, it has provided just 14.3 % wage hike against the staff side demand of more than 70% wage hike.

The person joining a Government Service is not just for the employment is for a whole career, if a person joins a Government Service he will quit/ retire from the job only after putting 30 years service or more. In case of the person joining a private company he will jump from one company to another at least five times in thirty years.

The talented persons from all over the country are moving to IT, BT and private sectors, rather than Central Government sector. Because of the lower salary / pay structure in Central Government sector compared to IT and BT sectors and complex nature of rules and regulations in Central Government sector and also the skill and merit of the worker/ employee is not into account in Central Government sector.

Main consideration in the private and public sector being ‘profit’, and in Central Government it is “service” even through Railways, Income Tax & Central Excise are revenue earning departments, hence an equal comparison with the Government is not going to be ever possible. Performance for the Government is usually not measured in terms of profit, but in terms of achieving societal goals.

The minimum wage should be calculated using Dr Aykroyd formula and following 15th ILC norms. The actual market rates should be adopted , not the imaginary rates as provided the 7th CPC should be adopted . This will pay way of meaningful wage hike and fitment formula. House rent is from Rs 7000/- per month to Rs 35,000/- per month. The 7th CPC has provided just from Rs 3000/- to Rs 25,000/- per month. The old HRA rates should be adopted.

The strength of Central government employees should increase. In 1990 Population of the country is 85 crores – Central Government Employees strength is 40 lakhs . In 2014 Population of the country is 125 crores – Central Government Employees strength is 31 lakhs. India has 1,622.8 government servants for every 1,00,000 residents. In sharp contrast, the U.S. has 7,681. The Central government, with 3.1 million employees, thus has 257 serving every 1,00,000 population, against the U.S. federal government’s 840.

Non-filling up of vacant posts has resulted in increased work load on the existing employees and delivery of the Government schemes.

Hence the Government should adopt a proper wage policy for the central Government employees and improve vastly the 7th CPC recommendations and fill up vacant post to deliver the Government schemes to the needy of the country. Now that the Central Government finances are good. This way both Central Government employees will benefit and the common man will also benefit.

Source: http://karnatakacoc.blogspot.in/

Be the first to comment - What do you think?  Posted by admin - at 7:30 pm

Categories: 7CPC   Tags: , , , , , ,

Recovery of wrongful and excess payments made to Government servants – Dopt orders on 2.3.2016

Recovery of wrongful and excess payments made to Government servants – Dopt orders on 2.3.2016

F.No.18/03/2015-Estt. (Pay-I)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

New Delhi, the 2nd March, 2016

OFFICE MEMORANDUM

Sub: Recovery of wrongful / excess payments made to Government servants.

The undersigned is directed to refer to this Department’s OM No.18/26/2011-Estt (Pay-I) dated 6th February, 2014 wherein certain instructions have been issued to deal with the issue of recovery of wrongful / excess payments made to Government servants in view of the law declared by Courts, particularly, in the case of Chandi Prasad Uniyal And Ors. vs. State of Uttarakhand And Ors., 2012 AIR SCW 4742, (2012) 8 SCC 417. Para 3(iv) of the OM inter-alia provides that recovery should be made in all cases of overpayment barring few exceptions of extreme hardships.

2. The issue has subsequently come up for consideration before the Hon’ble Supreme Court in the case of State of Punjab & Ors vs Rafiq Masih (White Washer) etc in CA No.11527 of 2014 (Arising out of SLP(C) No.11684 of 2012) wherein Hon’ble Court on 18.12.2014 decided a bunch of cases in which monetary benefits were given to employees in excess of their entitlement due to unintentional mistakes committed by the concerned competent authorities, in determining the emoluments payable to them, and the employees were not guilty of furnishing any incorrect information / misrepresentation / fraud, which had led the concerned competent authorities to commit the mistake of making the higher payment to the employees. The employees were as innocent as their employers in the wrongful determination of their inflated emoluments. The Hon’ble Supreme Court in its judgment dated 18 th December, 2014 ibid has, inter-alia, observed as under:

“7. Having examined a number of judgments rendered by this Court, we are of the view, that orders passed by the employer seeking recovery of monetary benefits wrongly extended to employees, can only be interfered with, in cases where such recovery would result in a hardship of a nature, which would far outweigh, the equitable balance of the employer’s right to recover. In other words, interference would be called for, only in such cases where, it would be iniquitous to recover the payment made. In order to ascertain the parameters of the above consideration, and the test to be applied, reference needs to be made to situations when this Court exempted employees from such recovery, even in exercise of its jurisdiction under Article 142 of the Constitution of India. Repeated exercise of such power, “for doing complete justice in any cause” would establish that the recovery being effected was iniquitous, and therefore, arbitrary. And accordingly, the interference at the hands of this Court.”

“10. In view of the afore-stated constitutional mandate, equity and good conscience, in the matter of livelihood of the people of this country, has to be the basis of all governmental actions. An action of the State, ordering a recovery from an employee, would be in order, so long as it is not rendered iniquitous to the extent, that the action of recovery would be more unfair, more wrongful,  more improper, and more unwarranted, than the corresponding right of the employer, to recover the amount. Or in other words, till such time as the recovery would have a harsh and arbitrary effect on the employee, it would be permissible in law. Orders passed in given situations repeatedly, even in exercise of the power vested in this Court under Article 142 of the Constitution of India, will disclose the parameters of the realm of an action of recovery (of an excess amount paid to an employee) which would breach the obligations of the State, to citizens of this country, and render the action arbitrary, and therefore, violative of the mandate contained in Article 14 of the Constitution of India.”

3. The issue that was required to be adjudicated by the Hon’ble Supreme Court was whether all the private respondents, against whom an order-of recovery (of the excess amount) has been made, should be exempted in law, from the reimbursement of the same to the employer. For the applicability of the instant order, and the conclusions recorded by them thereinafter, the ingredients depicted in paras 2&3 of the judgment are essentially indispensable.

4. The Hon’ble Supreme Court while observing that it is not possible to postulate all situations of hardship which would govern employees on the issue of recovery, where payments have mistakenly been made by the employer, in excess of their entitlement has summarized the following few situations, wherein recoveries by the employers would be impermissible in law:-

(i) Recovery from employees belonging to Class-III and Class-IV service (or Group ‘C’ and Group ‘D’ service).

(ii) Recovery from retired employees, or employees who are due to retire within one year, of the order of recovery.

(iii) Recovery from employees, when the excess payment has been made for a period in excess of five years, before the order of recovery is issued.

(iv) Recovery in cases where an employee has wrongfully been required to discharge duties of a higher post, and has been paid accordingly, even though he should have rightfully been required to work against an inferior post.

(v) In any other case, where the Court arrives at the conclusion, that recovery if made from the employee, would be iniquitous or harsh or arbitrary to such an extent, as would far outweigh the equitable balance of the employer’s right to recover.

5. The matter has, consequently, been examined in consultation with the Department of Expenditure and the Department of Legal Affairs. The Ministries / Departments are advised to deal with the issue of wrongful / excess payments made to Government servants in accordance with above decision of the Hon’ble Supreme Court in CA No.11527 of 2014 (arising out of SLP (C) No.11684 of 2012) in State of Punjab and others etc vs Rafiq Masih (White Washer) etc. However, wherever the waiver of recovery in the above-mentioned situations is considered, the same may be allowed with the express approval of Department of Expenditure in terms of this Department’s OM No.18/26/2011-Estt (Pay-I) dated 6th February, 2014.

6. In so far as persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

7. Hindi version will follow.

sd/-
(A.K.Jain)
Deputy Secretary to the Government of India

Authority : www.persmin.gov.in

Be the first to comment - What do you think?  Posted by admin - at 7:24 pm

Categories: DOPT Orders   Tags: , , , , , ,

SEVENTH CENTRAL PAY COMMISSION: PUBLIC NOTICE: 7th CPC

SEVENTH CENTRAL PAY COMMISSION
GOVERNMENT OF INDIA

PUBLIC NOTICE

Government of India, vide its Resolution No. 1/1/2013-E.III(A) dated the 28th February, 2014 have constituted the Seventh Central Pay Commission with the following terms of reference :-

a) To examine, recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therin as well as the specialized needs of various Departments agencies and services, in respect of the following categories of employees:-

(i) Central Government employees-industrial and non-industrial;
(ii) Personnel belonging to the All India Services;
(iii) Personnel of the Union Territories;
(iv) Officers and employees of the Indian Audit and Accounts Department;
(v) Members of the regulatory bodies (excluding the RBI) set up under the Acts of Parliament; and
(vi) Officers and employees of the Supreme Court.

b) To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as the retirement benefits of the personnel belonging to the Defence Forces, having regard to the historical and traditional parties, with due emphasis on the aspects unique to these personnel.
c) To Work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to the complex challenges of modern administration and the rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d) To examine the existing schemes of payment of bonus, keeping in view, inter-alia, its bearing upon; performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate Incentive Scheme to reward excellence in productivity, performance and integrity.

e) To review the variety of existing allowances presently available to employees in addition to pay and suggest their rationalization and simplification with a view to ensuring that the pay structure is so designed as to take these into account.

f) To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).
g) To make recommendations on the above, keeping in view:

i. the economic conditions in the country and the need for fiscal prudence;

ii. the need to ensure that adequate resources are available for developmental expenditures and welfare measures;

iii. the likely impact of the recommendations on the finances of the State Governments,which usually adopt the recommendations with some modifications.

iv. the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and

v. the best global practices and their adaptability and relevance in Indian conditions.

h) To recommend the date of effect of its recommendations on all the above.
2. The Commission invites all associations, unions, institutions, other organisations and interested individuals to send memoranda containing their views on the aforesaid matters so as to reach Office of Seventh Central Pay Commission latest by 31st May, 2014. This memoranda/material may be sent to PO Box No. 4599, Hauz Khas P.0, New Delhi 110 016 (Ten copies) and in case of e-mail to secy-7cpc@nic.in

Meena Agarwal
Secretary
Seventh Central Pay Commission
davp 15101/11/0004/1415

Be the first to comment - What do you think?  Posted by admin - at 3:59 pm

Categories: 7CPC   Tags: , , , ,

7th Pay Commission expressed its regret about transition from OPS to NPS

7th Pay Commission expressed its regret about transition from OPS to NPS

7th Pay Commission expressed its regret about transition from Old Pension Scheme to New Pension Scheme in its report.

2004-2011 Entrants : Government employees who have joined service between 2004 and 2011 have suffered due to delay in finalizing the structure of the NPS and the issue of detailed instructions. Although they have made regular contributions, in many cases, this money and/or counterpart contributions were not deployed in the market. In the case of AIS officers, some states are yet  to release counterpart contributions or pay interest on delayed contributions. This has led to a situation where the accumulated corpus even after 11 years of service could be meagre. It is necessary that this situation which arose during the transition from OPS to NPS be addressed.

The Commission therefore recommends that Central Governments and State Governments should, in a time bound manner, ensure that all the due contribution along with compounded interest, where contributions have been delayed, be deposited in the accounts of the beneficiaries. Advisories should be issued to the State Governments to deposit amounts, if not already done, in respect of NPS beneficiaries belonging to All India Services.

Many Association have pointed out that unlike the facility under GPF, it is not possible to make withdrawals under NPS, even to meet obligatory social expenditure. This forces employees towards increased indebtedness as they have to borrow from elsewhere.

The Commission notes that under the NPS Tier-I account, a subscriber is permitted to make partial withdrawal of twenty five percent of the contributions made to his/her individual pension account for certain specified purposes. Such withdrawals are permitted a maximum of three times during the entire tenure of subscription and a period of at least five years should have elapsed between two such withdrawals.

The Commission further notes that there exists a voluntary Tier-II account. Under this account, a subscriber can, at any time, withdraw the accumulated wealth either in full or part and there is no limit on such withdrawals provided the account has sufficient balance of accumulated pension wealth to cover the amount being withdrawn. However, the Tier-II account is yet to be made operational. The Commission therefore recommends that PFRDA should take steps to make the Tier-II accounts operational as early as possible to enable the NPS subscribers the facility of withdrawals from their accounts in case of requirement.

Transparency under NPS : Many associations and individuals have complained that the information relating to the NPS is inadequate, resulting in high degree of uncertainty in the minds of contributors about post-retirement benefits. The Commission noted that PFRDA sends a communication to every participant each month with the current pension wealth and the latest contribution that has been credited. The Commission recommends that focused efforts be made to capture email addresses and mobile numbers of subscribers so that seamless communication is ensured for all subscribers. The Commission recommends that consultation with stakeholders should also be held periodically in different parts of the country.

The Commission notes that no department of Government of India is taking ownership of the NPS. The Commission recommends that a Committee consisting of Secretary, Department of Financial Services, Secretary, Department of Pensions and Pensioners Welfare and Secretary, Department of Administrative Reforms and Public Grievances may be constituted to review the progress of implementation of NPS. The Commission also recommends that steps should be taken for establishment of an Ombudsman for redressing individual grievances relating to NPS.

Tax Treatment under the NPS : NPS is under the Exempt–Exempt – Tax (EET) regime while the General Provident Fund under the OPS is under Exempt–Exempt–Exempt (EEE) dispensation. Under the NPS, while the contributions and the accumulations are tax-exempt, withdrawals are taxable. As such, this is an inferior tax treatment when compared to other pension programmes such as General Provident Fund, Contributory Provident Fund, Employees Provident Fund and Public Provident Fund wherein contributions, accumulations and withdrawals are tax-exempt.

The Commission feels that tax neutrality should be ensured across various avenues for long term savings for post retirement incomes so that the employees covered by NPS are not at a disadvantage. The Commission therefore recommends that withdrawals under the NPS should be tax-exempt to place NPS at par with other pension schemes. The Commission also recommends that the service tax levied at the time of annuity purchase by NPS subscribers should be exempted.

Be the first to comment - What do you think?  Posted by admin - at 3:02 pm

Categories: 7CPC   Tags: , , , , , , ,

Central Government Employees Group Insurance Scheme 1980 – Finmin issued tables of Benefits for the savings fund for the period from 01.01.2016 to 31.12.2016

CGEGIS Table 2016 – Finmin issued tables of Benefits for the savings fund for the period from 01.01.2016 to 31.12.2016

No.7(1)/EV/2014
Government of India
Ministry of Finance
Department of Expenditure

 New Delhi, Dated the 26th February, 2016

OFFICE MEMORANDUM

Sub: Central Government Employees Group Insurance Scheme-1980 – Tables of Benefits for the savings fund for the period from 01.01.2016 to 31.12.2016

Every year two Table of Benefits are issued by the Ministry of Finance on calendar year basis for the savings fund to the beneficiaries under Central Government Employees Group Insurance Scheme (CGEGIS)-1980. while one Table of Benefits for the savings fund of the scheme is based on a subscription of Rs.10 per month per unit from 1.1.1982 to 31.12.1989 and Rs.15 per month per unit w.e.f. 1.1.1990 onwards, the other Table of Benefits for the savings fund is based on a subscription of Rs.10 per month in respect of the employess who had opted out of the revised rates of subscription w.e.f. 1.1.1990.

2. The two Table of Benefits under CGEGIS-80 for the calendar year 2016, prepared by IRDS, are enclosed. The benefits in the Tables have been worked out on the basis of interest @8.7% per annum (compounded quarterly), as notified by Department of Economic Affairs.

3. While calculating the amount it has been assumed that the subscription has been recovered or will be recovered from the salary of the month in which a member ceases to be in service failing which it should be deducted from accumulated amounts payable.

4. In its application to the employees of Indian Audit and Accounts Department this Office Memorandum issues in consultation with the Comprtroller and Auditor General of India.

sd/-
(Amar Nath Singh)
Deputy Secretary to the Government of India

CGEGIS Table 2016

 Authority: www.finmin.nic.in

Click to view the original order

Be the first to comment - What do you think?  Posted by admin - at 8:15 am

Categories: Employees News   Tags: , , , ,

Outcome of meeting with Cabinet Secretary held on 1.3.2016 – Confederation

Outcome of meeting with Cabinet Secretary – Confederation

 

MEETING WITH CABINET SECRETARY

 

                    Empowered Committee of Secretaries headed by Cabinet Secretary has held first round of discussion with JCM National Council Standing Committee members on strike Charter of demands on 1st March 2016. Staff Side explained the justification of each and every demand and conveyed the large scale resentment among the Central Government Employees to the Cabinet Secretary . Cabinet Secretary has not made any commitment on any demand. He informed that this is only a preliminary interaction with the Staff Side.

 

Com. M. Raghavaiyya Leader Staff Side, Com. Shiva Gopal Mishra Secretary Staff Side and other Standing Committee members attended.

 

Confederation was represented by Coms. KKN Kutty , M. Krishnan & M.S. Raja .

Meeting commenced at 0645 P.M. & ended at 0845 P.M.

M. Krishnan
Secretary General Confederation.

Source: Confederation

 

Be the first to comment - What do you think?  Posted by admin - at 7:52 am

Categories: 7CPC, Employees News   Tags: , , , , , , , , ,

Central Government Rejected Demand for Raising of Bonus Ceiling

GOVERNMENT REJECTED DEMAND FOR RAISING OF BONUS PAYMENT CEILING TO CENTRAL GOVERNMENT EMPLOYEES

F.No.7/4/2014-E-III(A)
Government of India
Ministry of Expenditure
(E-IIIA Branch)

North Block, New Delhi
Dated the 25th Feb, 2016

To,

Sh.Shiva Gopal Mishra
Secretary (Staff-side)
Joint Consultative Machinery(JCM)

13-C, Ferozshah Road,
New Delhi-110001.

Subject: Raising of bonus payment ceiling to Central Government employees.

Sir,

I am directed to refer to your L.No. NC-JCM-2015-S.C dated 11.1.2016 on the subject mentioned above and to say that the issue raised therein has been considered.

2. At the outset, till now there has not been a complete parity between Payment of Bonus Act, 1965 and the bonus for Central Government employees in regard to the two different ceilings, one relating to the calculation and the other relating to eligibility. While the calculation ceiling has been the same, the eligibility ceiling has been different and even the revised eligibility ceiling of Rs. 21,000 under the amended Payment of Bonus Act, 1965 is not higher than that in case of the Central Government employees where all non-gazetted employees are eligible for bonus. This being so, a complete parity for the purpose of calculation ceiling of Rs. 7000 p.m., that too, from 1.1.2014, is not justifiable.

3. Most importantly, the 7th Central Pay Commission, which has gone into the issue of bonus scheme in detail in respect of the Central Government employees, has felt that instead of bonus, there should be introduced the Performance related Pay (PRP) for all categories of Government employees and this PRP should subsume the existing bonus scheme.

The Commission has further recommended that since there would be a time log in implementing the PRP, the existing scheme should be reviewed and linked with increased profitability/productivity under the well-defined parameters. The recommendations of the Commission are separately being examined and an appropriate view would be taken as and when the Government decision on the recommendations of the 7th Central Pay Commission is known. Till such time, therefore, it may not be possible to revisit the issue of calculation ceiling in case of Central Government employees for the purpose of PLB/ad-hoc bonus.

4. This has the approval of the Finance Secretary

Yours Sincerely,
(Ashok Kumar)
Under Secretary to the Govt of India
Ph.23095650

Source: Confederation

Be the first to comment - What do you think?  Posted by admin - March 1, 2016 at 10:01 pm

Categories: 7CPC, Bonus   Tags: , , , , , ,

Online petition against retirement tax goes viral

Online petition against retirement tax goes viral

An online petition against retirement tax has gone viral on social media with nearly 3,000 signups seeking urgent and immediate withdrawal of Provident Fund Tax just a day after it was announced in the Budget.

The petition was started by a finance professional from Gurgaon, Vaibhav Aggarwal, and nearly 3,000 people have already supported his appeal to Finance Minister Arun Jaitley to immediately withdraw the decision to tax EPF.

Budget for 2016-17 seeks to impose a retirement tax at the time of final withdrawal on 60 per cent of contributions made after April 1, 2016, to EPF and other schemes.

“This is a draconian act and will be a killer blow to the already tax burdened salaried class which pays 30 per cent income tax and 30 per cent taxes in indirect form customs, excise, service tax etc,” the petition said.

Meanwhile, the government today said PPF will not be taxed on withdrawal and only the interest accrued on contributions to employee provident fund made after April 1 will be taxed while the principal will continue to remain tax exempt.

Revenue Secretary Hasmukh Adhia said the proposal, is to tax the interest accrued on Provident Fund contributions made after April 1, 2016. “The principal amount will not be taxed and will continue to remain tax exempt on withdrawal. What we have said is 40 per cent of the interest accrued on contributions made after April 1 will be tax exempt and its remaining 60 per cent will be taxed.”

Aggarwal in the petition, said that “the money which is left after paying more direct/indirect taxes is saved into PPF/EPF and used for retirement planning. But, now even this corpus will be snatched away to a major extent”.

Commenting on the petition, Preethi Herman, Country Lead of Change.org said, “Taxing a huge chunk of that fund will affect crores of people. The fact that this Change.org petition by Vaibhav Aggarwal is gathering so much support so rapidly is indicative of the deep unhappiness people are feeling about this move.

PTI

Be the first to comment - What do you think?  Posted by admin - at 5:20 pm

Categories: EPFO, Income Tax   Tags: , , , , , ,

References/Representations/Court Cases in various Ministries/Departments/ Organisations for grant of MACPS benefits in the promotional hierarchy

No. 22034/04/2013-Estt.(D)
Government of India
Ministry of Personnel Public Grievance & Pensions
Department of Personnel & Training
***

North Block, New Delhi
Dated: 01.03.2016

Office Memorandum

Subject :- References/Representations/Court Cases in various Ministries/Departments/Organisations for grant of MACPS benefits in the promotional hierarchy – reg.

***

In continuation of DOPT’ s earlier O.M. of even no. dated 20.01.2016 on the above mentioned subject, the undersigned is directed to forward a copy of the decision of Hon’ble CAT, Ahmedabad bench in OA No. 120/000018/2015 filed by Shri Manubhai B. Rathore Vs. UOI &Ors whereby the demand of the applicant for MACP in promotional Hierarchy has been dismissed.

(G.Jayanthi)
Director (E-I)
Phone No. 23092479

All Ministries/Departments of the Government of India.

ccis.nic.in

Be the first to comment - What do you think?  Posted by admin - at 5:07 pm

Categories: DOPT Orders, MACP   Tags: , , ,

Management Training for Retiring Defence Personnel

Management Training for Retiring Defence Personnel

Ministry of Defence
Press Information Bureau
Government of India

01-March, 2016

Approximately, 55,000 personnel retire annually from the armed forces. Government is providing training to the armed forces personnel before their retirement. The details of training provided by Government to armed forces personnel including Short Service Commissioned officers is as under:

DETAILS OF TRAINING COURSES:

Officers’ Training:

  • 24 Weeks Management Courses at IIMs and other reputed B-Schools
  • Modular management courses like Project Finance, Academic Institutions, Supply Chain, Retail, Six Sigma, Seafaring etc.
  • Newly introduced courses for 2015-16 like Strategic Retail Management, HRM, Facility, Transition, Export and Import, Event Management etc., Corporate Social Responsibility and Jet Transition.

 

ICOs / ORs and Equivalents’ Training at Institutes:

  • Security, Fire & Industrial Safety, Computer & IT including ‘O’ Level, Hospitality, Tourism, Agri based, Business Management, Modular Management, Vocational & Technical, Medical & Healthcare, Library & Information Science, Legal Assistant etc.
  • Newly introduced courses for 2015-16 like Logistics & Transport Management, Retailing & Showroom, Corporate Office, Material management, Marine Engineering etc.

Courses at Regimental Centres:

Apart from the above mentioned training programmes at Institutes at least two courses are conducted every month at all the Regimental Centres to provide variety of courses to the retirees on pension drill.Indian Institutes of Management Ahmedabad, Lucknow and Indore are conducting 24 weeks Management Courses regularly for Armed Forces personnel, which help them in taking up employment at managerial levels.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to ShriMeghraj Jain in Rajya Sabha today.

PIB

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

Categories: Defence   Tags: , , , ,

Clarification about Changes made in the Tax Treatment for Recognised Provident Fund & National Pension System (NPS)

Clarification about Changes made in the Tax Treatment for Recognised Provident Fund & National Pension System (NPS)

There seems to be some amount of lack of understanding about the changes made in the General Budget 2016-17 in the tax treatment for recognised Provident Fund & NPS.

The following clarifications are given in this matter:-

(i) The purpose of this reform of making the change in tax regime is to encourage more number of private sector employees to go for pension security after retirement instead of withdrawing the entire money from the Provident Fund Account.

(ii) Towards this objective, the Government has announced that Forty Percent(40%) of the total corpus withdrawn at the time of retirement will be tax exempt both under recognised Provident Fund and NPS.

(iii) It is expected that the employees of private companies will place the remaining 60% of the Corpus in Annuity, out of which they can get regular pension. When this 60% of the remaining Corpus is invested in Annuity, no tax is chargeable. So what it means is that the entire corpus will be tax free, if invested in annuity.

(iv) The Government in this Budget has also made another change which says that when the person investing in Annuity dies and when the original Corpus goes in the hands of his heirs, then again there will be no tax.

(v) The idea behind this mechanism is to encourage people to invest in pension products rather than withdraw and use the entire Corpus after retirement.

(vi) The main category of people for whom EPF scheme was created are the members of EPFO who are within the statutory wage limit of Rs.15,000 per month. Out of around 3.7 crores contributing members of EPFO as on today, around 3 crore subscribers are in this category. For this category of people, there is not going to be any change in the new dispensation.

(vii) However, in EPFO, there are about 60 lakh contributing members who have accepted EPF voluntarily and they are highly – paid employees of private sector companies. For this category of people, amount at present can be withdrawn without any tax liability. We are changing this. What we are saying is that such employee can withdraw without tax liability provided he contributes 60% in annuity product so that pension security can be created for him according to his earning level. However, if he chooses not to put any amount in Annuity product the tax would not be charged on 40%.

(viii) There is no change in the existing tax treatment of Public Provident Fund (PPF).

(ix) Currently there is no monetary ceilings on the employer contribution under EPF with only ceiling being that it would be 12% of the salary of the employee member. Similarly, there is no monetary ceiling on the employer contribution under NPS, except that it would be 10% of salary.

(x) Now the Finance Bill 2016 provides that there would be monetary ceiling of Rs1.5 lakh on employer contribution considered with the ceiling of the 12% rate of employer contribution, whichever is less.

(xi) We have received representations today from various sections suggesting that if the amount of 60% of corpus is not invested in the annuity products, the tax should be levied only on accumulated returns on the corpus and not on the contributed amount. We have also received representations asking for not having any monetary limit on the employer contribution under EPF, because such a limit is not there in NPS. The Finance Minister would be considering all these suggestions and taking a view on it in due course.

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

Categories: Pension   Tags: , , , , , ,

Key Features of Budget 2016-2017 : Official pdf Download

Key Features of Budget 2016-2017

INTRODUCTION : Growth of Economy accelerated to 7.6% in 2015-16

CHALLENGES IN 2016-17 : Risks of further global slowdown and turbulence.

ROADMAP & PRIORITIES :  ‘Transform India’ to have a significant impact on economy and lives of people

AGRICULTURE AND FARMERS’ WELFARE : Allocation for Agriculture and Farmers’ welfare is Rs. 35,984 crore

RURAL SECTOR : Allocation for rural sector – Rs.87,765 crore.

SOCIAL SECTOR INCLUDING HEALTH CARE : Allocation for social sector including education and health care – Rs.1,51,581 crore.

EDUCATION, SKILLS AND JOB CREATION : 62 new Navodaya Vidyalayas will be opened

SKILL DEVELOPMENT : Allocation for skill development – Rs. 1804. crore.

JOB CREATION : GoI will pay contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of Rs. 1000 crore for this scheme

INFRASTRUCTURE AND INVESTMENT : Total investment in the road sector, including PMGSY allocation, would be Rs. 97,000 crore during 2016-17.

FINANCIAL SECTOR REFORMS  : A comprehensive Code on Resolution of Financial Firms to be introduced.

GOVERNANCE AND EASE OF DOING BUSINESS : A Task Force has been constituted for rationalisation of human resources in various Ministries

FISCAL DISCIPLINE : Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%

RELIEF TO SMALL TAX PAYERS : Raise the ceiling of tax rebate under section 87A fromRs. 2000 to Rs. 5000 to lessen tax burden on individuals with income upto Rs.5 laks

BOOST EMPLOYMENT AND GROWTH : Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to Rs. 2 crores to bring big relief to a large number of assessees in the MSME category.

MAKE IN INDIA : Changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry

MOVING TOWARDS A PENSIONED SOCIETY : Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS).

PROMOTING AFFORDABLE HOUSING : 100% deduction for profits to an undertaking in housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities

RESOURCE MOBILIZATION FOR AGRICULTURE, RURAL ECONOMY AND CLEAN ENVIRONMENT : Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs.10 lakh per annum

PROVIDING CERTAINITY IN TAXATION : Committed to providing a stable and predictable taxation regime and reduce black money.

SIMPLIFICATION AND RATIONALIZATION OF TAXES : 13 cesses, levied by various Ministries in which revenue collection is less than ` 50 crore in a year to be abolished.

TECHNOLOGY FOR ACCOUNTABILITY : Expansion in the scope of e-assessments to all assessees in 7 mega cities in the coming years.

Authority: www.indiabudget.nic.in

Be the first to comment - What do you think?  Posted by admin - at 4:38 pm

Categories: General news   Tags: , , ,

House Rent Paid : 80GG has also been raised to 60,000 from 24,000

House Rent Paid : 80GG has also been raised to 60,000 from 24,000 

The limit of deduction of house rent paid under section 80GG has also been raised to Rs. 60,000 from the existing Rs. 24,000 per annum to give relief to employees who live in rented houses.

Certain Tax Reliefs announced for small tax payers and others

While presenting the General Budget 2016-17 in Lok Sabha here today, the Union Finance Minister Shri Arun Jaitley said that the taxation is a major tool available to Government for removing poverty and inequality and this has to be cautiously exercised. But, he would like to give relief to small tax payers, the Finance Minister added.

Thus the ceiling of tax rebate under Section 87A of IT Act has been proposed to be raised to Rs. 5,000 from Rs. 2,000 for individuals with income less than Rs. 5 lakhs. He said that above 2 crore tax payers would get a relief of Rs. 3,000. The limit of deduction of house rent paid under section 80GG has also been raised to Rs. 60,000 from the existing Rs. 24,000 per annum to give relief to employees who live in rented houses.

Under the presumptive taxation scheme under Section 44AD of the Income tax Act, the limit of turnover or gross receipts has been raised to two crore rupees from the exiting one crore rupees to benefit about 33 lakh small business people. It frees a large number of such assesses in the MSME category from the burden of maintaining detailed books of account and getting audit done.

The presumptive taxation scheme is to be now extended to professionals with gross receipts up to Rs. 50 lakh with the presumption of profit being 50% of the gross receipts.

Be the first to comment - What do you think?  Posted by admin - at 4:32 pm

Categories: IT Exemption   Tags: , , , , , ,

Finance Minister not given assurance for reviewing the retrograde recommendations of 7th CPC – NFIR

Finance Minister not given assurance for reviewing the retrograde recommendations of 7th CPC – NFIR

NFIR
National Federation of Indian Railwaymen
3, Chelmsford Road, New Delhi 110 055

 Press Statement of M.Raghavaiah, General Secretary

 

Finance Minister Arun Jaitley’s Budget (2016-17) failed to address the genuine aspirations of working class.

 

  • The Income Tax Exemption limit for serving and retired Central Government employees has not been revised.
  • The Fixed Medical Allowance for Retired Central Government employees has not been raised to Rs. 2000/- p.m. from the existing Rs. 500/- p.m., resulting continued hardship to Retired Central Government employees who live in remote places and small towns where medical facilities not provided.
  • The Finance Minister has not spoken on the employees’ demand for abolition of New Pension Scheme.
  • It is sad to note that the Finance Minister has not given assurance for reviewing the retrograde recommendations of 7th Central Pay Commission although he said that a Committee has been constituted.

The Workers’ of Government Sector, Private as well Unorganized Sectors are disappointed over the Budget announcements.

 

Mr.Raghavaiah, General Secretary, NFIR has urged upon the Prime Minister to accept Railway Minister’s proposal sent in November, 2015 and see that Railway Employees are exempted from New Pension System.

sd/-
(M.Raghavaiah)
General Secretary

Source: NFIR

Be the first to comment - What do you think?  Posted by admin - at 8:35 am

Categories: 7CPC, Railways   Tags: , , , , ,

Budget 2016: Jaitley Cuts Down 54% Ministers Travel Expenses

Budget 2016: Jaitley Cuts Down 54% Ministers Travel Expenses

 

The travel and other expenses of Union Ministers have been slashed by a whopping 54 per cent in the 2016-17, according to the Budget proposals presented by Finance Minister Arun Jaitley today in Parliament.

The budget estimates, the amount allocated under the head of ‘Tour Expenses’ has been fixed at Rs 259 crore.

The expenditure under this head, which covers salaries, sumptuary and other allowances and travel of Cabinet Ministers, Ministers of State and ex-Prime Ministers, was pegged at Rs 269 crore for 2015-16.

However, the budgetary expenses under this head, which also covers maintenance of VVIP aircraft, was revised later to Rs 566.66 crore.

This year, the government has introduced Rs 4.35 crore under the head of ‘Hospitality and Entertainment’ under which expenditure on government hospitality and entertainment of foreign state guests and official entertainment arranged at Rashtrapati Bhawan on behalf of the Vice President and the Prime Minister.

It also includes reception on national days, investiture ceremonies and presentation of credentials.

Inputs with PTI

Be the first to comment - What do you think?  Posted by admin - at 8:17 am

Categories: General news   Tags: , ,

AICPIN FOR JANUARY 2016 – EXPECTED DA FROM JULY 2016 BEGINS..!

AICPIN FOR JANUARY 2016 – EXPECTED DA FROM JULY 2016 BEGINS..!

All India Consumer Price Index for Industrial Workers on Base 2001=100

The Labour Bureau, under the Ministry of Labour and Employment has now released the AICPIN points for the month of January 2016, the index stands at 269.

The first index point for the year 2016 has been released by the Central Government and the 7th Pay Commission DA Calculation also starts with this first index.

The next issue of CPI-IW for the month of February, 2016 will be released on Thursday, 31st March, 2016

aicpin for jan 2016

No.5/1/2016- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

CLEREMONT, SHIMLA-171004
DATED: 29th February, 2016

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – January, 2016

The All-India CPI-IW for January, 2016 remained stationary at 269 (two hundred and sixty nine). On 1-month percentage change, it remained static between December, 2015 and January, 2016 when compared with the rise of 0.40 per cent between the same two months a year ago.

The largest upward pressure to the change in current index came from Housing group contributing (+) 1.11 percentage points to the total change. At item level, Wheat, Wheat Atta, Groundnut Oil, Fish Fresh, Eggs (Hen), Goat Meat, Poultry (Chicken), Milk (Buffalo & Cow), Garlic, Sugar, Bidi, Firewood, Medicine (Allopathic), Barber Charges, Flower/Flower Garlands, Tailoring Charges, etc. are responsible for the increase in index. However, this increase was checked by Rice, Arhar Dal, Gram Dal, Masur Dal, Moong Dal, Urd Dal, Mustard Oil, Coconut Oil, Onion, Vegetable and Fruit items, Petrol, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 5.91 per cent for January, 2016 as compared to 6.32 per cent for the previous month and 7.17 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 7.61 per cent against 7.94 per cent of the previous month and 7.81 per cent during the corresponding month of the previous year.

At centre level, Haldia reported the maximum increase of 8 points followed by Jamshedpur (7 points) and Labac-Silchar (5 points). Among others, 4 points increase was observed in 6 centres, 3 points in another 6 centres, 2 points in 9 centres and 1 point in 14 centres. On the contrary, Bhilai recorded a maximum decrease of 9 points followed by Bokaro (6 points) and Ranchi-Hatia and Varanasi (4 points each). Among others, 3 points decrease was observed in 2 centres, 2 points in 11 centres and 1 point in 10 centres. Rest of the 13 centres’ indices remained stationary.

The indices of 34 centres are above All-India Index and other 40 centres’ indices are below national average. The indices of Salem, Varanasi, Jabalpur and Vishakhapathnam centres remained at par with All-India Index.

The next issue of CPI-IW for the month of February, 2016 will be released on Thursday, 31st March, 2016. The same will also be available on the office website WWW. labourbureaunew.gov.in.

(SHYAM SINGH NEGI)
DEPUTY DIRECTOR GENERAL

Source: www.labourbureau.nic.in

Be the first to comment - What do you think?  Posted by admin - February 29, 2016 at 6:49 pm

Categories: AICPIN, Dearness Allowance, Expected DA   Tags: , , , , , , ,

Seeking information about the actual data of parks/allowances given to the CVOs for the financial year 2013-14 and 2014-15

F.No.325/10/2015-AVD-III
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
*****

North Block, New Delhi
Dated the 26th February, 2016

OFFICE MEMORANDAM

Subject: Seeking information about the actual data of perks/allowances given to the CVOs for the financial year 2013-14 & 2014-15.
The undersigned is directed to refer to this Department’s O.M. of even number dated 1 st July, 2015 wherein a committee was constituted to decide reassessment of CVO positions in CPSEs and other organizations under different Ministries/Departments and
rationalization of pay, incentive, allowances etc. of CVOs, under the chairmanship of Additional Secretary(S&V), DoPT.
2. The Committee in its meeting held on rt February, 2016, has decided to seek information about the actual data of perks/allowances given to the CVOs for the financial year 2013-14 & 2014-15 including all other expenses borne by the organization in respect of CVOs from the concerned administrative Ministries/Departments before taking a final decision for rationalization of pay, incentive, allowances of CVOs.
3. Ministries/Departments-are-therefore,-requested-to-furnish-information-about-theactual data of perks/allowances given to the CVOs for the financial year 2013-14 & 2014-15 (including all other expenses borne by the organization’in respect of CVOs) in the enclosed proforma at the earliest.

(Gracy Varghese)
Under Secretary to the Government of India
Tel. No. 23094541

Proforma for furnishing details about the pay, incentives, allowances etc. paid to the CVOs for the financial year 2013-14 & 2014-15

Be the first to comment - What do you think?  Posted by admin - at 5:05 pm

Categories: Allowance, DOPT Orders   Tags: , , ,

Measures for moving towards a pensioned society

Measures for moving towards a pensioned society

While presenting the General Budget 2016-17 in Lok Sabha today, the Union Finance Minister Shri Arun Jaitley said that pension schemes offer financial protection to senior citizens. He proposed to make withdrawal up to 40% of the corpus at the time of retirement tax exempt in the case of National Pension Scheme(NPS). In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made after 1.4.2016. Further, the annuity fund which goes to the legal heir after the death of pensioner will not be taxable in all three cases.

He also proposed a monetary limit for contribution of employer in recognized Provident and Superannuation Fund of Rs. 1.5 lakh per annum for taking tax benefit.

He proposed to exempt from service tax the Annuity services provided by the National Pension Scheme (NPS) and Services provided by EPFO to employees. Also, he proposed to reduce service tax on Single premium Annuity (Insurance) Policies from 3.5% to 1.4% of the premium paid in certain cases.

PIB

Be the first to comment - What do you think?  Posted by admin - at 2:54 pm

Categories: EPFO, Pension   Tags: , , , , , , ,

« Previous PageNext Page »