Based on the 7th Pay Commission data, already pension payments account for a third of the government’s wage bill. That is going to rise sharply over the next 10 years.
7th Pay Commission – Pensioners to Gain the Most – While the 7th Pay Commission pay scale increase of serving employees is 16%, pensioners will see a 23.63% rise.
7th Pay Commission on pay and pension: Once the recommendations of the 7th Pay Commission are implemented, the biggest gainers will be pensioners. While the 7th Pay Commission pay scale increase of serving employees is 16%, pensioners will see a 23.63% rise. However, the big gain per se is in allowances, which rise by as much as 63%. Here is an elaboration of the 7th Pay Commission pension recommendations:
Going by the numbers, pension payments could well be the next time-bomb. Based on the 7th Pay Commission data, already pension payments account for a third of the government’s wage bill. That is going to rise sharply over the next 10 years. It is driven by the fact that 9.48 lakh employees accounting for 29% of the 30.32 lakh employees on the rolls now are in the 50-60-year band. By this time in 10 years, that means the government will need to pay for an additional million pensioners. So, the pension bill will continue to rise – with better health, most people live almost 20 years after retirement.
The Urban Development Ministry will see the sharpest fall (61.3%) followed by the Department of Posts (41.6%). However, the Indian Railways will account for half of the retirees (4.94 lakh). Despite the 37.5% fall in employees, the Indian Railways will still have 9.22 lakh employees if no new ones are hired.
This is also due to the fact that there has been no real move to reduce the government employee base over the years. While there are 33 lakh employees now it was 32.74 lakh in 2006 and 32.31 lakh in 2010. The only relief from the pension bomb will come when those employed after 2004 come to retirement age. These people are covered under the National Pension Scheme where the pensions they receive will depend on the payout they make while being employed. However, these employees will reach the retirement age a good 30 years from now. Check out 7th Pay Commission on pay and pension quick calculator below:
||Employees (in lakh)
||In 50-60- yr group
|Accts & audit
Source: The Financial Express
7th Pay Commission having been tabled already, now it is left to Empowered Committee (appointed for examining the report of the Commission) to consider the demands of Staff Side.
7th Pay Commission Report – Areas which require Revision / Modification by Empowered Committee as per Staff Side demands – Minimum Pay, Fitment Formula, Annual Rate of Increment, Date of Effect, Ratio between Minimum Pay and Maximum Pay, Fixation of Pay on Promotion etc.
After 7th Pay Commission formed in February 2014, staff side JCM consisting of members who are also office bearers of various staff organisations had submitted detailed memorandum to the Commission and suggested the quantum of Minimum Pay, Fitment Formula, Annual Rate of Increment, Date of Effect, Ratio between Minimum Pay and Maximum Pay, Fixation of Pay on Promotion etc., for taking in consideration by 7th Pay Commission in its recommendations.
However, many of the demands of the staff side were not favourbly considered by the 7th Pay Commission in its recommendations.
Now, Staff Side have been impressing upon Empowered Committee, the need for rectification / modification / revision of many of retrograde recommendations of 7th Pay Commission
We provide here a brief of the areas with respect to which Staff Side members will have to demand for revision / modification of the recommendations of 7th Pay Commission.
1. Minimum 7th Pay Commission Pay and Ratio between Minimum and Maximum Pay:
7th Pay Commission has proposed a basic pay of Rs. 18000 as minimum entry pay in Central Government Service (Pay of MTS). However, Staff Side JCM is of the view that as per approved methods such as Dr.Aykroyd Formula, minimum pay in Central Government Service should be Rs. 26,000.
2. Date of Effect and Fitment Formula:
Staff Side JCM had put forth before 7th Pay Commission that uniform fitment formula / multiplication factor of 3.7 to be applied while fixing the basic pay of existing employees.
With regard to Date of effect of 7th Pay Commission pay and allowances, members representing staff side submitted before 7th CPC that Central Government Employees are due for pay revision every ten years and that in order to rectify the delay in implementation of pay commission award in the past, the present pay commission award has to be given effect from 1st January 2014.
Contrary to Staff Side JCM’s suggestions, 7th Pay Commission has fixed the fitment formula / multiplication factor as 2.57. While mere merger of DA with existing pay in pay band and Grade pay would require a multiplication factor of 2.25, 7CPC proposed fitment formula / multiplication factor of 2.57 would result in increase in basic pay to an extent of 14.22% only.
Hence, convincing 7th CPC empowered committee for a higher multiplication factor / fitment formula would be the foremost concern of Staff Side JCM.
As far as date of effect of 7th Pay Commission award is concerned, the commission has not accepted the suggestion of Staff Side. It has observed that since the previous pay commission was given effect from 1st January 2006, the present pay commission award will have to be made effect only from 1st January 2016.
3. Annual Rate of Increment and Date of Increment:
Staff JCM in its memorandum before 7th Pay Commission suggested that since most of the PSUs including the banking industries provide the incremental rate at 5% and over a period of time it raised the salary level of the personnel, rate of annual increment for Central Government Employees will have to be fixed at 5%.
Further, uniform date of increment prescribed by the 6th CPC resulted in many anomalies, Staff Side JCM submitted that two specific dates as increment dates, Viz. 1st January and 1st July will have to be introduced. Those recruited/appointed/promoted during the period between 1st January and 30th June will have their increment date on 1st January and those recruited/appointed/promoted between 1st July and 31st December will have it on 1st July next year.
Also, staff side required that those who retire on 30th June or 31st December are granted one increment on the last day of their service, since they serve the entire one year of service required for an increment as on the date of retirement
Recommendation of 7th Pay Commission on the rate of increment:
In spite of valid argument of staff side for recommending annual increment rate of 5%, 7th Pay Commission has not made revision in annual increment and Promotional increment which have been recommended at the rate of 3% of basic pay.
4. Scrapping of NPS:
Staff Side JCM is of the view that New Pension system (NPS) has to be scrapped and all the employees who have joined in Govt Servic on or after 01.01.2004, are to be brought to defined pension scheme.
However, 7th Pay Commission observed that the NPS will have to be continued; that Govt should frame necessary law / Policy for proper investment of NPS fund in Equity and that a strong grievance redressel will have to be formed to serve NPS employees.
5. Transport Allowance:
With regard to Transport Allowance, Staff Side JCM presented the demand that if at all Transport allowance is meant to defray transport charges then low paid employees ought to have been paid higher transport allowance then higher level officers as they only travel from long distances to reach office. Hence, it was suggested by Staff Side that uniform transport allowance be paid irrespective of level of the cadre
||X class cities
|Up to Rs.75,000
||Rs. 7500 plus DA
||Rs. 3750 plus DA
However, 7th Pay Commission has not modified the structure of Transport allowance on the basis of pay level. The existing DA on Transport Allowance has been proposed to be merged. The new rates of Transport Allowance suggested are as follows:
Higher TPTA Cities
|9 and above
It has been demanded by Staff Side JCM that five hierarchical promotions to be granted under MACP. Presently only 3 financial upgradations either in the form of promotion or time bound financial upgradation to next grade pay are being ensured under MACP.
7th Pay Commission has not made any proposal for revising the number of upgradations under MACP which is three at present.
With regard to the benchmark for performance appraisal for MACP as well as for regular promotion, 7th Pay Commission has recommended that in the interest of improving performance level, the same has to be enhanced from ‘Good’ to ‘Very Good.’
7th Pay Commission has also noted that introduction of more stringent criteria such as clearing of departmental examinations or mandatory training before grant of MACP can also be considered by the government.
Withholding Annual Increments of Non-performers:
7th Pay Commission has proposed that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.
The Commission has proposed for withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.
7. House Building Advance:
Staff Side JCM had demanded for increasing the advance to 50 times of the Salary and fixing the rate of interest not more than 5%.
As per 7th Pay Commission’s recommendations, 34 times of Basic Pay OR Rs.25 lakh OR anticipated price of house, whichever is least can be availed as House Building Advance.
The requirement of minimum 10 years of continuous service to avail of HBA has been proposed to be reduced to 5 years.
If both spouses are government servants, 7CPC has proposed that HBA should be admissible to both separately. Existing employees who have already taken Home Loans from banks and other financial institutions would be allowed to migrate to this scheme, as recommended by 7CPC.
8. Children Education Allowance:
Suggestions of Staff Side:
Presently the allowance is admissible for two children, for studying in a recognised school up to XII standard. The maximum ceiling is stipulated at Rs.18000/- since this allowance had been hiked by 50% because of the DA component in salary having been crossed 100% on 1.1.2014. It is suggested that doubling of this allowance and increasing the same by 50 % whenever the DA crosses over by 50%
Further, it has been suggested that the CEA scheme may be extended to cover children studying for Graduate/Post Graduate and Professional courses.
7th Pay Commission’s recommendations on Children Education Allowance:
|CEA (Rs. pm)
||1500×1.5 = 2250
||Whenever DA increases by 50%, CEA shall increase by 25%
|Hostel Subsidy (Rs. pm)
||4500 x 1.5 = 6750 (ceiling)
||Whenever DA increases by 50%, Hostel
Subsidy shall increase by 25%
7th Pay Commission has not accepted the Staff Side’s demand that CEA to be applicable for children beyond class 12.
House Rent Allowance suggested by Staff Side JCM
|X classified cities
|Y classified towns
|Z classified/unclassified places
House Rent Allowance recommended by 7th Pay Commission
HRA rates as % of Basic Pay
(including MSP and NPA)
|50 lakh and above
|Below 5 lakh
HRA when DA crosses 50%
HRA rates as % of Basic Pay
(including MSP and NPA)
|50 lakh and above
|Below 5 lakh
HRA when crosses 100%
HRA rates as % of Basic Pay
(including MSP and NPA)
|50 lakh and above
|Below 5 lakh
Staff Side JCM demanded the following as far as Leave Travel Concession applicable to Central Government Employees is concerned
1. Permission for air journey for all categories of employees to and from NE Region.
2. Permission for personnel posted in NE Region for a journey within NE Region.
3. To increase the periodicity of the LTC once in two years.
4. Explore the possibility of allowing an employer to undertake tour outside India once in a service career in lieu of the LTC.
7th Pay Commission Report on LTC:
It could be found that suggestions of Staff Side JCM such as increasing the frequency of All India LTC, permission for air travel for all categories of employees in respect of NE Region etc., were not discussed in the report of 7th Pay Commission.
The proposal to split hometown LTC has been considered and it is recommended that splitting of hometown LTC should be allowed in case of employees posted in North East, Ladakh and Island territories of Andaman, Nicobar and Lakshadweep.
Also, it is obsered by 7th Pay Commission that LTC to foreign countries is not in the ambit of this Commission.
Suggestions of Staff Side JCM:
Staff Side JCM suggested that in respect of gratuity payable to employees ceiling of 16.5 times and the quantum limit of Rs. 10 lakhs should also be removed. It was pointed out that in the banking industry there is no such ceiling of 16.5 months‟ salary but the retiring bank employees are getting at the rate of ½ a month salary for every year of service even over and above 33 years of service. Hence, in respect of Central Government Employees also for a service span exceeding 33 years, the gratuity should be higher and the above ceiling be withdrawn.
7th Pay Commission’s recommendations on Gratuity:
It has been recommended by 7th Pay Commission that ceiling of gratuity is to be raised from the existing Rs.10 lakh to Rs. 20 lakh from 01.01.2016. Further, as per Commission’s recommendations, Gratuity is to be partially indexed to Dearness Allowance. It is proposed that the ceiling on gratuity may increase by 25% whenever DA rises by 50 percent.
Minister of Railways introduced Wi-Fi services at Three More Railway Stations i.e. Patna, Ranchi & Visakhapatnam
The Minister of Railways, Shri Suresh Prabhakar Prabhu inaugurated the High Speed Wi-Fi services at Patna (Bihar), Ranchi (Jharkhand) & Visakhapatnam (Andhra Pradesh) Railway Stations through Video Conferencing from Rail Bhawan, New Delhi for the commuters at these Railway Stations. The Wi-Fi facility for the visitors & rail users at these stations has been commissioned by RailTel in association with Google for providing high speed state of the art world class internet experience to the commuters. Chairman, Railway Board Shri A.K. Mital, Member Engineering Shri V.K. Gupta, M.D. RailTel Shri R.K. Bahuguna, and other board Members were present at Rail Bhawan to grace the occasion. Various dignitaries were also presented at the respective above mentioned Railway Stations.
Speaking on the occasion, the Minister of Railways Shri Suresh Prabhakar Prabhu said that as the India is heading towards digitalization, Internet has become the basic need of every individual for which they are entitled to. He said that to bring the railway stations to world standard and to keep pace with the latest technology, provision of high speed WiFi is the first step in this direction. He said that so far this facility has been provided at 19 Railway Stations which will be extended to 100 Railway Station in the coming one year. He said that after completion of this project of providing WiFi facility at all 400 stations, it would be the biggest WiFi service in the world. He said that Indian Railways have been taking lot of measures to improve the facilities for the railway users and the coming time will also bring lot of new facilities which will make the railway passengers feel proud.
Union Home Minister announced ex-gratia amount of Rs.25 lakh
Union Home Minister Shri Rajnath Singh has expressed his deep sorrow and grief on the sad demise of Shri M.M. Khan, Deputy Law Officer of New Delhi Municipal Council (NDMC). Shri M.M. Khan was murdered on May 16, 2016.
In his message, Shri Rajnath Singh has said that Shri M.M. Khan was a dedicated and honest employee of NDMC. Delhi Police has apprehended all the seven accused in the murder of Shri M.M. Khan within 48 hours of the incident. Union Home Minister has conveyed his deepest condolence to the family of Shri M.M. Khan and has said that every possible support to the family of the deceased would be given.
Shri Rajnath Singh has announced an ex-gratia amount of Rs.25 lakh to the family of the deceased. On the directions of Home Minister, NDMC has offered a job to the wife of late Shri M.M. Khan on compassionate grounds. NDMC has also been directed to extend every possible support to the family of the deceased. The employees of NDMC have also shown their solidarity to the family of Shri M.M. Khan and have decided to contribute their one day salary to the family of Shri M.M. Khan.
Union Home Minister has said that Ministry of Home Affairs and NDMC stand united with the family of late Shri M.M. Khan in their moment of grief.
Appointment of the Additional Secretaries to the Government of India
Government of India
Secretariat of the
Appointments Committee of the Cabinet
Ministry of Personnel,Public Grievances and Pensions
Department of Personnel and Training
New Delhi, the 19th May, 2016
The Appointments Committee of the Cabinet has approved the following appointments:
1. Ms Shalini Prasad, IAS (UP:1985), presently in her Cadre as Additional Secretary, Ministry of Power vice Shri Badri Narain Sharma, IAS (RJ:1985) on his appointment as Additional Secretary, Department of Revenue, Ministry of Finance.
2. Ms Madhulika P Sukul, IDAS (1982), presently in her Cadre as Additional Secretary, Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution vice Shri G. Gurucharan,IAS (KN:1982) on his appointment as Secretary (Performance Management), Cabinet Secretariat.
3. Shri Rajani Ranjan Rashmi, IAS (MN:1983), Additional Secretary, Department of Commerce, Ministry of Commerce and Industry as Additional Secretary, Ministry of Environment, Forest and Climate Change vice Shri Hem Kumar Pande, IAS (WB:1982) on his appointment as Secretary, Department of Official Language, Ministry of Home Affairs.
4. Shri Girish Chandra Murmu, IAS (GJ:1985), Additional Secretary, Department of Expenditure, Ministry of Finance as Additional Secretary, Department of Financial Services, Ministry of Finance vice Ms Snehlata Shrivastava, IAS (MP:1982) on her appointment as Secretary, Department of Justice, Ministry of Law and Justice.
5. Ms Amita Prasad, IAS (KN:1985), Joint Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation as Additional Secretary, Ministry of Environment, Forest and Climate Change vice Shri Susheel Kumar, IAS (UP:1982) on his appointment as Secretary (Border Management), Ministry of Home Affairs.
6. Shri Nikhilesh Jha, IAS (MN:1984), Additional Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation as Additional Secretary and Financial Adviser, Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution vice Shri Prabhas Kumar Jha, IAS (UP: 1982) on his appointment as Secretary, Ministry of Parliamentary Affairs.
7. Shri U P Singh, IAS (OR:1985), Additional Secretary, Ministry of Petroleum and Natural Gas as Additional Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation vice Shri Nikhilesh Jha, IAS (MN:1984) on his appointment as Additional Secretary and Financial Adviser, Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution.
Appointments Committee of the Cabinet
& Establishment Officer
CALCULATION ARREARS ON 50% PENSION FOR JCO/OR
HOW TO GO ABOUT CALCULATION OF ARREARS OF JCOs & Ors:- With coming of this rule the arrears will be due to those persons who have been receiving Pension lesser than the 50% of “Minimum of Pay in Pay Band” wef 01 Jan 2006 to 30 June 2014 ie upto the date of implementation of the OROP Scheme.
2. Hence the first and foremost item to know is the “Min of Pay in Pay Band” pertaining to your Group and Rank. The above chart has been derived from various Circulars issued by PCDA(P). Do intimate in case there be some changes and modification is needed.
3. The amount by which you have been getting lesser than this amount is the Basic difference now payable per month.
4. In case of JCOs & ORs three Circulars ie 547, 430 and 501 are important. There will thus be three differences corresponding to periods as under :-
(a) Difference between MP in PB and figures in 547 from 01 Jan 2006 to 30 June 2009.
(b) Difference between MP in PB and figures of circulat 430 from 01 Jul 2009 to 23 Sep 2012.
(c) Difference between MP in PB and figures of Circular 501 from 24 Sep 2012 to 30 Jun 2014.
5. Note down these figures where ever they are less than the MP in PB. However in case they are higher than the MP in PB these are not to be taken into account and the difference be taken as Zero.
6. Multiply these three differences with Multiplication factors as under to add period and DA:-
(a) 01 Jan 2006 to 30 Jun 2009 = 46.02.
(b) 01 Jul 2009 to 23 Sep 2012. = 57.62
(c) 24 Sep 2012 to 30 Jun 2014. = 39.76
7. Add the results these are your likely Arrears:- Let us understand with the help of example of “Nb Sub / JWO / CPO” of “Y” Group. retired with 20 Yrs of service.
(a) The “MPinPB” for Rank & Gp is Rs 16660/- hence the BASIC PENSION is half of it i.e Rs 8330/-
(b) Pensions as per Circulars = 547 is Rs 6311, 430 is Rs 8088/- & 501 is Rs 8088/-
(c) Differences (1) 8330-6311= 2019, (2) 8330-8088= 242, (3) 8330-8088= 242
NOTE – In case the pension figs of the Cicular are more than the “MP-in-PB”, No arrears are due in such a case for the period and the current pension which is more than “MP-in-PB” will continue.
(2) 242X57.62= 13944,
(3) 242X38.76= 9622,
TOTAL = 116480 Its simple , Isn’t it.
COMPARATIVE TABLE JCOs AND ORs – VARIOUS CIRCULARS
Source-http://ex-airman.blogspot.in/ & http://ex-servicemenwelfare.blogspot.in/
Development of Single Window Service for Central Civil Pensioners.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II, BHIKAJI CAMA PLACE,
PHONES : 26174596, 26174456, 26174438
CPAO/IT&Tech/Single Window Service/2016-17/38
17th May, 2016
Subject:- Development of Single Window Service for Central Civil Pensioners.
CPAO is in final stage of developing a single window service for Central Civil Pensioners providing them access to pension process status and all the required information about their Pension & revision details, also providing for Grievance Registration facility and its status to pensioners. This service also intends to track each pension case from the initial stage of preparation of list of all government servants who are due to retire within next twelve to fifteen months on quarterly basis and its submission to concerned Pay & Accounts Officer to the stage of first credit of Pension by the bank.
2. In this context, Rule 56 of CCS (Pension) Rules, 1972 provides that:-
(i)Every Head of Department shall have a list prepared every three months, that is, on the 1st January, 1st April, 1st July, 1st October each year, of all Government servants who are due to retire within the next twelve to fifteen months of that date.
(ii) A copy of every such list shall be supplied to the Accounts Officer concerned not later than 31st January, 30th April, 31st July or 31st October, as the case may he, of that year.
3. Joint Secretary (Admn) of all the Ministries/Departments (copies endorsed to Pr. CCAs/ CCAs/CAs) have already been requested to provide the above lists to their concerned Accounts Officer vide CPAO’s OM No. CPAO/Tech/Jeevan Pramaan/2015- 16/515-662 dated 10.07.2015 followed by OM No. CPAO/Tech/Jeevan Pramaan/ 2015-16/1770 dated 07.03.2016.
4. All the PAOs must have these lists with them by now. Accordingly, all Pr. CCAs/CCAs/ CAs/AGs/Administrators of UTs are requested to ensure that the lists of all such government servants as on 1st April, 2016 are provided to CPAO latest by 3rd June, 2016 positively through PAO login provided on the CPAO’s website cpao.nic.in in the annexed format.
5. The facility of generating PPO Nos. through the list itself is also being developed by CPAO.
Controller of Accounts)
Download signed copy here – Development of Single Window Service for Central Civil Pensioners.
Government of India
Ministry of Personnel, Public Grievances and Pension
(Department of Personnel & Training)
North Block, New Delhi-110001
Dated the 12th May, 2016
All the Chief Secretaries of State Governments/UTs.
Subject: Revision of pension of pre-2006 pensioners of All India Services – delinking the pension from qualifying service of 33 years.
I am directed to refer to the above mention subject and to say that in compliance of the judicial pronouncement, the Department of Pension & Pensioners vide its O.M. No. 38/37/08-P&PW(A) dated 06/04/2016 has decided that the pension of pre-2006 pensioners, in no case, shall be lower than 50% of corresponding scale in the fitment table delinking the pension from qualifying service of 33 years and the same is to be revised w.e.f. 0`1.01.2006. The applicability of the provisions of the aforesaid O.M. dated 06/04/2016 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 mutatis-mutandis to All India Service pensioners of pre-2006.
(Rajesh Kumar Yadav)
Under Secretary to the Government of India
Revision of Scheme of National Welfare Fund of Sportspersons
The National Welfare Fund for sports persons was set up in March, 1982 with a view to assisting outstanding sportspersons of yesteryears, who had brought glory to the country in sports, now living in indigent circumstances,. The scheme was last reviewed and revised in July 2009.
Scheme of National Welfare Fund of Sportspersons has been reviewed again and has been revised extensively.
Under the revised Scheme, amount of annual income for being eligible for getting financial assistance from the Fund has been raised from the existing Rs. 2 lakh to Rs. 4 lakh.
Scope of the Scheme has also been expanded to include more sportspersons for being considered for financial assistance from the Fund.
Quantum of assistance from the Fund has also been substantially enhanced.
Under the revised scheme, sportspersons and family members of the sportspersons living in indigent circumstances will be eligible for following amounts of financial assistance:
(i) Financial assistance may be granted to an outstanding sportsperson now living in indigent circumstances, subject to a maximum of Rs. 5 lakh.
(ii) Financial assistance subject to a maximum of Rs. 10 lakh may be granted to an outstanding sportsperson for injuries sustained during training for and participation in sports competitions.
(iii) Financial assistance not exceeding Rs. 5.00 lakh may be provided to the families of deceased outstanding sportspersons living in indigent circumstances.
(iv) Financial assistance not exceeding Rs. 10 lakh may be provided for medical treatment of an outstanding sportsperson or of any of his/her family members living in indigent circumstances.
(v) Financial assistance not exceeding Rs. 2 lakh may be provided to coaches and support personnel such as sports doctors, sports psychologists, sports mentors, physiotherapists, masseurs who have been attached with national coaching camps for senior category players and national teams (senior category), and umpires, referees and match officials, who have been associated with recognized national championships (senior category) and international tournaments (senior category) in the sports disciplines included in Olympic Games, Asian Games and Commonwealth Games who are living in indigent circumstances or to family members of such deceased support personnel living in indigent circumstances.
Pre-2006 retiree IAS, IPS officers to get pension hike
IAS and IPS officers, who have retired before 2006, will get a hike in pension, in addition to the arrears, as the Centre has done away with a provision of 33-years of service for earning full pension.
The move comes after the Department of Pensions and Pensioners Welfare decided that the revised consolidated pension of pre-2006 pensioners shall not be lower than 50 per cent of the minimum of the pay in the pay band and the grade pay even if they had served for less than 33 years at the time of retirement.
Necessary orders directing concerned authorities to calculate the revised pensions in respect of central government pensioners, excluding retiree officers of three all India services — Indian Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFoS) — have already been issued.
It has been now decided that the same provisions “shall be applicable mutatis-mutandis (as mentioned in earlier order issued in this regard) to all India service pensioners of pre-2006″, said a communique sent to all chief secretaries of state governments and union territories administration by the Personnel Ministry.
As per rules, a central government servant is entitled to receiving superannuation pension on completion of at least 10 years of service. With effect from January 1, 2006, pension is calculated with reference to average emoluments — the average of the basic pay drawn during the last 10 months of service or last basic pay drawn whichever is higher.
Before 2006, for service of less than 33 years, amount of pension was proportionate to the actual service broken into completed half-year periods.
Nurses diet allowance hiked
Himachal Pradesh Chief Minister Virbhadra Singh on Wednesday announced increase in diet allowance for nurses from Rs 6 to Rs 25 besides regularizing the services of the nurses appointed on contract basis by Rogi Kalyan Samiti (RKS) who had completed five years of contractual service.
Presiding over the closing ceremony of International Nurses Day at Indira Gandhi Medical College and Hospital (IGMC) here, he also announced setting up of separate cell for nurses in the Directorate of Health Service (DHS).
Speaking on the occasion, Health Minister Kaul Singh Thakur said nurses had greater responsibility than doctors as they play a crucial role in care of patients.
He said 4,025 posts of paramedical staff had been sanctioned besides 377 posts of nurses had been sent to Service Selection Board.
7th Pay Commission – Centre on Defensive Mode – Advantage Employees
7th Pay Commission – Centre on Defensive Mode – The central government is trying to balance out the burden of the 7th pay commission payout on the exchequer.
The Prime Minister’s Office is keenly awaiting the final touch up to the 7th Pay commission panel’s recommendations, and is keen that inflationary trends be kept in perspective while finalising the salary structure of the government employees.
The trade unions, while protesting the 7th Pay Panel’s recommendations, said that the proposed 7th Pay Commission hike was the lowest in many decades and not in sync with inflation.
The central government is trying to balance out the burden of the 7th pay commission payout on the exchequer. As per reports, though the salaries of the government employees will be paid in July as per the 7th Pay Commission recommendations, the arrears from January 2016, will be disbursed only August onwards.
The employees are anticipating at least Rs 24,000 take-home salary per month. In a meeting with the BJP’s labour wing Bharatiya Mazdoor Sangh, Jitendra Prasad, Union Minister of State for Personnel, Public Grievances, Pensions, had told the delegation that government would positively look into the demand of the central government employees. “The minister said we will consider the proposal of minimum pay of 24,000”, said Pawan Kumar, Regional Organizing Secretary.
The Bhartiya Mazdoor Sangh is the largest central trade union organization in India, and claims to have more than 10 million members.
The trade union also sought increase in the Multiplication Factor and changes in the HRA.
Other than the pressure of trade unions, the results of the Assembly election in five states, West Bengal, Assam, Tamil Nadu, Kerala, Pondicherry, are likely to have an influence on the final pay out.
The notification towards implementation of the 7th pay commission will be announced only after the result of the elections. If the mandate goes totally in favour of the Opposition, the government will be under greater pressure to keep the dissatisfaction related to salary hike in check.
The Govt went on back foot in previous policy decisions on the proposed EPF changes, and their subsequent rollback showed government in a bad light. Sources say the centre is keen not to repeat the same with the 7th pay commission Implementation.
All India Bank Employees Association (AIBEA) Calls for Strike on May 20
All India Bank Employees Association (AIBEA) Calls for Strike – As per reports, State Bank of India (SBI) is all set to merge its five associate banks and Bharatiya Mahila Bank (BMB) with itself.
Opposing the decision of boards of directors of five associate banks of State Bank of India (SBI) to close down and merge with SBI, the All India Bank Employees’ Association (AIBEA) has called a strike on May 20.
As per reports, State Bank of India (SBI) is all set to merge its five associate banks and Bharatiya Mahila Bank (BMB) with itself to emerge as a financial behemoth, with assets worth Rs 37 lakh crore ($550 billion).
Its five associates are State Bank of Bikaner & Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT). BMP, started in 2013, is a Delhi-based public sector lender.
In a statement Tuesday, AIBEA said it has called an all-India strike in the five SBI associate banks — State Bank of Travancore (SBT), State Bank of Mysore (SBM), State Bank of Hyderabad (SBH), State Bank of Bikaner and Jaipur (SBBJ), and State Bank of Patiala (SBP) — on May 20.
According to AIBEA, at the board meetings of the five SBI associate banks held in Mumbai on Tuesday, an agenda was brought to close down the associate banks and for acquisition by SBI.
“Despite opposition and protest by all the AIBEA’s Workman Directors and a few other independent directors about the proposal and the procedure adopted, the resolution has been approved in this regard,” the statement said.
“It is shameful that when the government is talking of corporate governance and good governance, board agenda is brought without intimation on such a serious matter and decision is taken,” AIBEA added.
According to the statement, the decision of the five banks is not in consonance with what Finance Minister Arun Jaitley had suggested to the union at their meeting on March 23 and April 25 this year.
“He opined that all the five banks can be made into one single entity. But what SBI and the Associate Banks are trying to do is the opposite to what the FM (finance minister) had suggested,” AIBEA said.
Implementation of 7th CPC and Enhancement of Minimum Wage/Multiplying Factor – NJCA
“A Cabinet Note is being prepared and is likely to be submitted to the Cabinet, Government of India, very shortly. We are not very sure that, the demands raised by the Staff Side, NC/JCM have been incorporated in that Cabinet Note”. – NJCA
National Joint Council of Action
4, State Entry Road New Delhi-110055
Ph: 011-23365912, 23343493, Fax: 23363167
Dated: May 17, 2016
All Constituent Organisations,
National Council (JCM)
Sub: Meeting with the Cabinet Secretary
On 5th May, 2016 I met the Cabinet Secretary, Government of India, and once again draw his attention towards my letter NO.NC/JCM/2016 dated: May 2, 2016, a copy of the said letter was also handed over to him.
During discussion I also mentioned about the anguish of the Central Government employees because of inordinate delay in implementation of VII CPC recommendations and also their anxiety about enhancement in Minimum Wage as well as Multiplying Factor etc.
I also demanded a meeting with the Staff Side, NC/JCM on all the issues raised by the Staff Side, NC/JCM and demanded that, views of the Official Side should also be made known to the Staff Side.
The Cabinet Secretary agreed to hold a meeting with some of the Secretaries, particularly with the Secretary(Exp.), Secretary, DoP&T and whosoever is required, particularly for discussion.
It has been assumed that, a Cabinet Note is being prepared and is likely to be submitted to the Cabinet, Government of India, very shortly. We are not very sure that, the demands raised by the Staff Side, NC/JCM have been incorporated in that Cabinet Note.
In these circumstances I believe that, we should call a meeting of the NJCA and discuss about the strategy and future course of action, particularly in regard to Strike Notice on 9th June, 2016 and “Indefinite Strike” from 11th July, 2016.
The meeting of the NJCA will be held on 3rd June, 2016 at 16:00 hrs. in JCM Office, 13-C, Ferozshah Road, New Delhi.
Hope, all members of the NJCA will make it convenient to attend the meeting.
(Shiva Gopal Mishra)
Source: Confederation Blog
Click to view the original letter
MACPS benefits in the promotional hierarchy – Clarification orders issued by Dopt on 17.5.2016
Government of India
Ministry of Personnel Public Grievance & Pensions
Department of Personnel & Training
North Block, New Delhi
Subject :- References/Representations/Court Cases in various Ministries / Departments / Organisations for grant of MACPS benefits in the promotional hierarchy – reg.
In continuation of Department of Personnel Training’s earlier O.M. of even no. dated 20.01.2016 and dated 01.03.2016 on the above mentioned subject, the undersigned is directed to forward a copy of the decision dated 28.04.2016 of Hon’ble CAT, Calcutta Bench in OA No. 351/00195/2014 filed by Shri S.H.K. Murti & Others Vs. UOI &Ors whereby the demand of the applicant for MACP in promotional hierarchy has been dismissed, for necessary action and compliance. The Hon’ble Tribunal in the aforesaid decision dated 28.04.2016 has held that the MACP benefit would be given in the hierarchy of next higher Grade Pay and not in Grade Pay of promotional hierarchy which will be payable on actual promotion.
2. All Ministries/Departments are requested to upload it on their websites for wider publicity.
Click to view the order
National Federation of Indian Railwaymen
No. IV/RSAC/Conf./Part VI
The Secretary (E),
Sub: Supply of subsidized meal/food to the Running Staff-reg.
Ref: (i) NFIR’s PNMM Item No. 9/2015.
(ii) Railway Board’s letter no. 2006/M(L) /467 12 dated 12/08/2015 .
(iii) NFIR’s letter No. IV/RSAC/Conf/Part V dated 19/08/2015, 25/08/2015, 05/10/2015, 09/11/2015 and No. IV/RSAC/Conf./Part VI dated 22/02/2016.
(iv) Railway Board’s letter No. 2006/M(L)/467/2 dated 26/04/2016 addressed to GS/NFIR.
With reference to NFIR’s PNM Item No. 9/2015, the Railway Board vide letter dated 12/08/2015, had issued instructions for revision of the amount of subsidy per meal at Rs.41 or 90% of the cost of meal, whichever is less for Running Staff, considering the prices of food items. In the subsequent letter dated 26/04/2016 addressed to the GS/NFIR, the Board has conveyed that the rate of meal was increased from Rs.30 to Rs.46 out of which, 90% of the cost of meal or Rs.41, whichever is less, would be subsidized.
The reports received by the Federation however reveal that the Running Staff are disappointed very much as the supply of subsidized food suffers with number of flaws as listed below:-
- the option of Veg/Non-Veg food is no longer available, thus the staff are compelled to eat whatever food prepared by the contractor,
- sub-standard food is supplied by the contractor,
- The contractors secure contract on the basis of ‘lowest bidder’ at far below the cost of Rs.46/-. These contractors utterly fail to maintain quality for fear of incurring losses and they manage to make up the losses with the other contracts like ‘Safai’, House keeping etc., of Running Rooms. There are cases wherein the contracts of “Supply of food to Running Staff have further been entrusted to sub-contractors who are not the genuine caterers.
- System of bidding needs review so that the reputed firms/hoteliers with back ground of hotel management or owning good hotels in the area can only take part in the bidding process.
- Regular inspections by the Committee of Divisional Officers (Sr.DME, Sr.DEE, Sr.DOM, Sr.DSO etc) not being done, consequently quality suffers.
- The practice of preparation of food one time only taking place instead preparing food like dal/curries as and when staff arrive in Running Room.
NFIR, therefore, requests the Railway Board to kindly arrange to review the matter in the in text of growing dissatisfaction among Running Staff for ensuring that quality food items are served by the caterer/contractor.
(Dr. M. Raghavaiah)
Copy to the General Secretaries of Zonal Unions of NFIR.
File No.9/2015 (PNM).
Staff Side is ready for resorting to indefinite strike from 11th July 2016, if Govt did not call NJCA for talks before implementing 7th Pay Commission Report
7th Pay Commission Latest News – Unilateral decision by Government will not be accepted – Staff Side JCM writes to Govt for conducting negotiation with Staff Side Associations before taking a decision on 7th Pay Commission recommendations
Though the central government employees are ardently waiting for the implementation of the Seventh Pay Commission, reports suggest that it will not be done before the results for the Assembly elections are announced. If reports are to be believed then the proposal of minimum pay of 24,000 will be taken into consideration and the reasonable expectations of central government employees will be met while announcing the salary hikes in accordance with the 7th pay commission.
According to a Zee news report, “Other than the pressure of trade unions, the results of the Assembly election in five states, West Bengal, Assam, Tamil Nadu, Kerala, Pondicherry, are likely to have an influence on the final pay out.
The notification towards implementation of the seventh pay commission will be announced only after the result of the elections. If the mandate goes totally in favour of the Opposition, the government will be under greater pressure to keep the dissatisfaction related to salalry hike in check.”
‘No unilateral decision on salary hikes under 7th Pay Commission acceptable’ The central government employees lead by the National Council (Staff Side) Joint Consultative Machinery have said that they will not accept unilateral decision on salary hikes under the seventh Pay Commission and would like to have more say in the way their monthly salaries and allowances are shaped up by the Empowered Committee of Secretaries. “Neither did the Government side made any commitment on any demands, nor did they indicate in the minutes that further discussion will be held with the staff side to arrive at a negotiated settlement on each demands.
It seems that the Modi Government is moving ahead to issue unilateral orders taking the staff side for a ride”, M Krishnan, Secretary General of the central government employees confederation was quoted as saying in the Zee report. “The staff side on the other hand has taken a position that if unilateral orders are issued, without taking the staff side into confidence, the NJCA shall go ahead with the indefinite strike from 11th July 2016 as already informed to the government”, Krishnan further added in the report.
An empowered committee of Secretaries was formed under the Cabinet Secretary to process the recommendations of the pay panel.
This committee also invited the Joint Consultative Machinery which is the group representing the Staff side (central employees union) to understand their view point. The central employees union has clearly said that they will not accept any unilateral decision on the issue and needs a bilateral negotiation on the matter.
Source: One India
Finmin constitutes Fiscal Responsibility and Budget Management panel, N K Singh to be chairman
The Union Finance Ministry on Tuesday constituted a five member Fiscal Responsibility and Budget Management (FRBM) panel.
The panel would be headed by former Revenue and Expenditure Secretary and Member of Parliament N K Singh. Former Finance Secretary Sumit bose, Chief Economic Advisor Arvind Subramanian, Director of National Institute of Public Finance and Policy Rathin Roy and Deputy Governor of RBI Urijit Patel will be its members.
The panel will examine fiscal deficit range instead of fixed targets and look into feasibility of fiscal expansion or contraction in relation to credit expansion and contraction.
The FRBM Act deals with matters of fiscal discipline, such as spending and deficit, along with management of macro-economic factors and public funds.
The FRBM committee would submit its report to the government by October 31.
The panel, which was announced by Union Finance Minister Arun Jaitley in his Budget speech, will look into factors that influence the country’s fiscal targets.
The financial Daily advises Central Government Employees to prudently spend the extra money in their hand in the form of 7th CPC pay and allowances increase.
7th Pay Commission Pay hike – Financial Express ideas for effectively utilising the additional payout in provisioning for Emergency fund creation, financial goals, asset allocation, long term and short term investments etc.
7th Pay Commission: While you wait for the payout, FeMoney advises you to give a hard look at your entire finances and then decide on how you want to go about spending the money.
If you are a central government employee, you must be eagerly awaiting the notification of the 7th Pay Commission, which might come close after the declaration of the state election results on May 19. The payout could be substantial with salary hike and arrears adding up to a Rs 1.02 lakh crore impact on government finances.
The 7th Pay Commission recommendation, which are to come into effect from January 1, 2016, will enlarge the pay package of 47 lakh central government employees and 53 lakh pensioners. The Commission has recommended a 23.55 per cent hike in pay and allowance. While pay will go up by 16 per cent, increase in allowance will be 63 per cent and increase in pension 24 per cent.
The huge payout by the government has already made the Reserve Bank of India worried over the its impact on inflation. In its recent credit policy, the central bank said that it expect inflation to go up by 1-1.5 per cent on account of the increased money in hand of central government employees.
So if you are one of the beneficiaries of the 7th Pay Commission, what should you do with the bonanza that is expected to come soon? As is natural with such one-time windfall coming your way, there would be that temptation of splurge, plan for an expensive holiday or buy that new car that you have been eyeing for some time.
However, while you wait for the payout, FeMoney advises you to give a hard look at your entire finances and then decide on how you want to go about spending the money.
Financial advisor, Sanjeev Govila, CEO, Hum Fauji Initiative, believes one of the priorities should be to create an emergency fund out of the arrears that one gets in lump-sum. In his five-point advise to Central Government employees Govilla says one should keep finanical keep financial goals and proper asset allocation in mind while dealing with the money. “It is absolutely essential that the bulk money which one gets as 7th Pay Commission arrears should go for meeting financial goals. And that is where the asset allocation and risk attitude should flow from,” Govila told FeMoney.
Here are Govila’s 5-point suggestions on dealing with the 7th PayCommission bonanza:
Emergency fund creation: Creation of emergency fund out of the payout is the prime requirement. Even before looking at life’s goals one has to be prepared for unforeseen events. Most of us remain oblivious to this and do not plan for it. This results in costly loans, embarrassing borrowings from friends and relatives or emptying long-term coffers. As a thumb-rule, about six month’s expenses should set aside for an emergency fund. The question is where to keep it? It could ideally be in multiple small bank fixed deposits or liquid mutual funds.
Cater to life’s financial goals: Life’s goals can be divided into critical goals and lifestyle goals. Critical goals are those which have to be met at all costs, like children education and marriage, retirement and medical expenses, while the lifestyle goals, like changing your car, vacations, leisure and passion activities.
Proper asset allocation: Spreading investment across various assets to minimise risks should be considered the final frontier of life’s financial planning. Whatever wealth creation or destruction takes place finally, is generally due to correct or incorrect asset allocation. An asset allocation directly results as a delicate balance between your future money requirements, indicating the type of investment avenues you should invest in, and your risk attitude and risk taking capacity.
Decide between long-term and short term: As a general rule, equity is for long-term and debt for the short term, with real estate and gold figuring somewhere in between. Investment in real estate and gold should depend on the future outlook of both these asset classes as prices of these physical assets are dependent on their seasonal cycles.
Assesment of risk-taking ability: Risk-taking is erroneously tagged to age, even by many financial planners. However, it is both an attitude and the capacity to take risks, the latter being dictated more by your current financial well-being. Hence, it is always better to go in for a risk-profiling rather than guessing the same by ‘indications’ of behaviour.
Source: Financial Express
EPFO disbursed Rs. 47,630 crore as member benefits and Rs. 8,200 crore as monthly pensions in 2015-16
In 2015-16, EPFO disbursed approximately Rs. 47,630 crore as member benefits and Rs. 8,200 crore as monthly pensions.
To monitor the status of enrolment of contractual employees especially in municipalities, EPFO has taken steps towards putting in place a system where principal employers including government bodies who enroll workers directly or through contractors can view details of contractors including the amount paid towards PF dues on real time basis. Now, EPFO will be in a position to compare the PF dues reimbursed to contractors and the PF dues actually remitted by contractors. Mismatch in the amounts would indicate possible specific evasion that can be followed up towards seeking compliance. A facility already exists in public domain wherein all principal employers can check the amounts remitted by contactors’ establishments. Any person through this report can also check if her / his name appears in the list of employees submitted by contractor to EPFO on a monthly basis. EPFO is also in the process of digitizing compliance reporting system. It is expected that reporting in Compliance area shall be online and real time by the second quarter of this financial year.
The process of seeding EPS pensioners’ data with Aadhaar is underway in EPFO. While seeding the data, it has been noticed that in certain cases there is data mismatch between EPF data and Aadhaar data in respect of date of birth and name of pensioner. To rectify it, pensioners / members are being advised to correct either their details provided to EPFO offices or to correct the details given in Aadhaar, whichever is correct.
It is also seen that a number of online transfer applications by members are pending with the employers for attestation and verification of member details by the employers Field offices of EPFO have been directed to take up the matter with employers to clear this on priority.
On the occasion of International Labour Day, EPFO launched a special mission consolidation drive “One –Employee-One – EPF Account”. The drive is to consolidate multiple accounts of members so that they are able to access variety of IT enabled services such as e-mail / SMS alerts, access to e-passbook at their leisure. Shri Bandaru Dattatreya, Union Minister of State for Labour & Employment (Independent Charge) while presiding over the function marking International Labour Day stated that this drive would result in EPF members having lifelong one EPF account and multiple conveniences. The Universal Account Number (UAN) that is Aadhaar seeded will consolidate multiple past service accounts, across various spells of employment of an EPF member.
The month of April also saw withdrawal of notification dated 10th February 2016 on amendment in Paragraph 68 NN, 68-O and 69 and insertion of new Para 68 –NNNN in the EPF Scheme, 1952. The interest rate of 8.8% to be credited to members’ accounts for the financial year 2015-16 was also finalized by the Government as recommended by the Central Board of Trustees, EPF.