Posts Tagged ‘7CPC’

7th Pay Commission: Why government not to implement higher allowances?

7th Pay Commission: Why government not to implement higher allowances?

New Delhi: Despite all that has been said about the higher allowances under the 7th Pay Commission recommendations, an important issue for central government employees has now been strangely absent from the government agenda.

First, the Finance Minister Arun Jaitley had claimed it must implement after four months of the basic pay hike but it failed to come true.

More than 14 to 15 months have passed since the 7th pay commission report was submitted and seven months have elapsed since the union cabinet approved the 7th Pay Commission recommendations for salary hike of central government employees, but the they are still awaiting the higher allowances.

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

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

Finance Secretary Ashok Lavasa said in October 2016, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”

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

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

The government is using delaying tactics to save the government money to pay higher allowances without arrears from August 16.

The delay in implementation of the higher allowances has caused tremendous irritation and frustration among employees.

The Prime Minister Narendra Modi led BJP may have to face a backlash in the assembly elections in the five states, two of which is ruled by the party either directly or in alliance. Thus, not properly implementing of the 7th Pay Commission recommendations would amount to strike to blow to the BJP in polls.

TST

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Be the first to comment - What do you think?  Posted by admin - February 9, 2017 at 2:51 pm

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NJCA: 7th Pay Commission Centre may hike Allowances of Central Gov employees from April 1

NJCA: 7th Pay Commission Centre may hike Allowances of Central Gov employees from April 1

A day after Budget 2017 was tabled in the Parliament by Finance Minister Arun Jaitley, the CG employees were upset as Jaitely nowhere mentioned any increase in the hike of allowances in the 7th Pay Commission.

But the members of National Joint Action Committee (NJCA) are an optimist about the implementation of 7CPC and believe that the government will come up with some positive news on April 1. The NJCA also believe that the Union Government will be implementing the 7CPC latest by April 1, after the end of financial year.

On Wednesday, the central government employees were gripped with pessimism after Arun Jaitley made no reference to the anomalies related to 7CPC in his Budget speech. “All of us were eagerly waiting for Finance Minister to make some announcement on minimum wages. But after Mr Jaitley’s speech ended without mentioning a single word about the increase in the minimum wage, most of us were upset,” Shiv Gopal Mishra, NJCA chief said.

He further added, “The government may implement the 7th pay commission recommendations by April 1 and their demand to increase the minimum wage will also be implemented. If the government fails to increase minimum wages from Rs 18,000 to Rs 25,000 then we will launch a massive protest against the government”.

The NJCA has been actively involved with the Centre where they are seeking a revision of minimum salary from Rs 18,000 to Rs 26,000. The NJCA members and its conveyor had also met Home Minister Rajnath Singh, Finance Minister Arun Jaitley, Railway Minister Suresh Prabhu, a day after the implementation of 7th pay commission and had kept their demands in front of senior leaders.

Shiv Gopal Mishra is quite optimist about the hike in allowances of government employees but he is not sure that their demands of raising the minimum wage would be fulfilled by the government.

On Wednesday, most of the senior central government employees were eagerly waiting for the Budget speech as most of them expected the Finance Minister to speak on the 7th pay commission.

On July 1, 2016, the 7th Pay Commission was approved by the Union Cabinet. The date of implementation was fixed by the high-powered committee as for January 1, 2016. From the month of July, the central government employees were provided with the hiked salaries, along with the arrears of six months. But the hike was only related to the basic component of their pay. The increase in allowances was upheld, due to the anomalies raised by employees unions.

Source: India.com

Be the first to comment - What do you think?  Posted by admin - February 4, 2017 at 7:50 am

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7th Pay Commission – Central Government Employees upset – No reference to CPC Anomalies by Jaitley in Budget 2017 – NJCA

7th Pay Commission – Central Government Employees upset – No reference to CPC Anomalies by Jaitley in Budget 2017 – NJCA

Pessimism gripped central government employees with Finance Minister Arun Jaitley making no reference to the anomalies related to 7th Pay Commission in his Budget speech.

“Most of the central government employees were eagerly waiting for Finance Minister Arun Jaitley to make some announcement on minimum wages. But after Mr Jaitley’s speech ended without mentioning anything about the increase in the minimum wage, most of us were upset,” NJCA convenor Shiv Gopal Mishra said while speaking to India.com.

“Ab toh asha ki kiran kaheen naheen hai, sirf nirasha hee nirasha hai (We are losing hope. We can only see disappointment),” the leading unionist further added. NJCA has proactively been involved in talks with Centre, seeking revision of minimum salary from Rs 18,000 to Rs 26,000, among other demands.

Although Mishra indicated that the government may not backtrack on their stance over minimum salary, he claimed that the allowances would be hiked by April 1. “There are chances the government hikes the allowances from April 1. However, we would launch our protests against the government if they fail to revise the minimum salary,” he added.

The 7th Pay Commission was approved by Union Cabinet on July 1, 2016. The date of implementation was fixed as January 1, 2016. The central government employees were provided the hiked salaries from the month of July, along with arrears of six months. However, the hike was related only to the basic component of their pay. The increase in allowances was upheld, due to the anomalies raised by employee unions.

7th Pay Commission report affected nearly 47 lakh central government employees, along with 53 lakh pensioners. Implementation of the report has revised the minimum salary from Rs 7,000 to Rs 18,000. The maximum salary has been capped at Rs 2,50,000.

The total salary hike sanctioned through 7th Pay Commission is 23 per cent. However, the central government employees, so far, have received a hike of 14.3 per cent, which is related to the basic pay. The remaining 9 per cent of the hike is related to the allowances component.

Although the government has indicated that the allowance hike would be implemented by March, there is no word whether the central government employees would be provided arrears on allowances, akin to the manner in which they were provided on basic pay. Providing arrears to central government employees, keeping January 1, 2016 as the base, would create significant amount of burden on the exchequer.

Source: India

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7th Pay Commission implementation to State Government Employees – Minister’s reply in the Parliament

7th Pay Commission implementation to State Government Employees – Minister’s reply in the Parliament

7th Pay Commission implementation – State Government employees are not covered within the terms of reference of the 7th central Pay Commission – Minister’s reply in the Parliament

Smt.Nirmala Sitharaman in a written reply to a Member states that State Government employees are not covered within the terms of reference of the 7th central Pay Commission

While answering to a question in Parliament on 12th August 2014 regarding the employees working in State Government, Ministry of State for Finance Smt.Nirmala Sitharaman said that the State Government employees are not covered within the terms of reference of the 7th central Pay Commission.

She replied in written form to a question asked by a member that service conditions of State Government employees fall within the exclusive domain of respective State Governments. Therefore, State Government employees are not covered within the terms of reference of the 7th central Pay Commission.

Thus, the recommendations of Commission will not directly apply to State Government employees. Accordingly, it is not possible for the Central Government to indicate the financial burden on State Governments, if they decide to adopt the recommendation of the 7th Central Pay Commission in respect of their employees with or without modification.

She also added, the Central Government had sought the views of the State Governments and till the date of the constitution of the 7th Central Pay Commission on 28.2.2014, only 14 States had responded. These State Governments generally mentioned, inter-alia, that adoption of the recommendations of a Central Pay Commission by them in case of State Government employees adds to substantial financial burden

Since the decision to adopt the recommendations of the 7th Central Pay Commission in case of the State Government employees will exclusively concern respective State Government, the question of any assistance by the Central Government will not arise. However, the Terms of Reference of the 7th Central Pay Commission provide, inter-alia, that while making its recommendations, the Commission will also keep in view the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications.

Be the first to comment - What do you think?  Posted by admin - January 31, 2017 at 5:16 pm

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Pay element relating to Running Staff after the recommendations of 7th CPC

Pay element relating to Running Staff after the recommendations of 7th CPC

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD
No.E(P&A)II-2015/RS-25

New Delhi, dated: 24.01.2017

The General Manager,
All Indian Railways
and Production Units.

Sub: Pay element relating to Running Staff after the recommendations of Seventh CPC.

It has come to notice that on some of the zonal railways add-on pay element of 55% is not being reckoned for calculation of emoluments for the purpose of retirement benefits for the running staff on the basic pay fixed in the 7th CPC pay structure. As per Rule 924 (iii) of IREM-I that is still valid, 55% of Basic Pay is recokoned as add-on pay element for calculation of pension and DCRG of the Running Sitff. It is therefore advised that calculation of retirement benefits of the running staff may be made as per extant Rule 924 (iii) of IREM-I on the revised basic pay in the 7th CPC.

2. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

(Dhruv Singh)
Executive Director
Pay Commission-I
Railway Board

Source: NFIR

Be the first to comment - What do you think?  Posted by admin - January 29, 2017 at 9:31 pm

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7th Central Pay Commission recommendations -amendment of Service Rules/Recruitment Rules

No. AB-14017/13//2016-Estt(RR)-Pt
Government of India
Ministry of Personnel P.G & pensions
Department of Personnel and Training

North Block, New Delhi
Dated: 18.01.2017

OFFICE MEMORANDUM

Subject: Seventh Central Pay Commission’s recommendations -amendment of Service Rules/Recruitment Rules.

The undersigned is directed to refer to this Departments OM No AB.14017/61/2008-Estt. (RR) dated 24/03/2009 regarding amendment of Service Rules/ Recruitment Rules in pursuance of Sixth Pay Commission’s recommendations. The revised pay structure recommended by 6th CPC and approved by the Government included a number of ‘merged grades’ with a common Pay Band and Grade Pay.

2. In order to regulate the service rendered in the pre-revised scale where there have been merger of more than one grade into one with a single grade pay, it was advised that a Note to the following effect may be inserted under relevant columns in the Schedule of RRs and under relevant provisions in Service Rules.

“Note: For the purpose of computing minimum qualifying service for promotion, the service rendered on a regular basis by an officer prior to 1.1.2006/the date from which the revised pay structure based on the 6th CPC recommendations has been extended, shall be deemed to be service rendered in the corresponding grade pay/pay scale extended based on the recommendations of the Commission. For purposes of appointment on deputation/ absorption basis, the service rendered on a regular basis by an officer prior to 1.1.2006/the date from which the revised pay structure based on the 6th CPC recommendations has been extended, shall be deemed to be service rendered in the corresponding grade pay/pay scale extended based on the recommendations of the Commission except where there has been merger of more than one pre-revised scale of pay into one grade with a common grade pay/pay scale, and where this benefit will extend only for the post(s) for which that grade pay/pay scale is the normal replacement grade without any upgradation.”

3. It has been observed that after implementation of 7th CPC there are only a few cases of merger/upgradation of pay scale. However in cases where merger/ upgradation of pay is recommended in the 7th CPC and the same has been accepted, there is a need to provide a Note on similar lines as above with relevant changes i.e. the date 1.1.2006 needs to be replaced with 1.1.2016 and “6th CPC” is to be replaced with “7th CPC”. In other cases the Note as referred above need not to be prescribed in the RRs/SRs where no merger/ upgradation are involved as per 7th CPC recommendations.

(G. Jayanthi)
Director (E-I)

To
All Ministries / Departments of Government of India

Source: 7th CPC Ordes 2017

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Seventh Central Pay Commission’s recommendations – revision of pay scales – amendment of Service Rules/Recruitment Rules

F.No. AB-14017/13/2016-Estt.(RR)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
Estt.-RR Division

North Block, New Delhi
Dated:18th January 2017

OFFICE MEMORANDUM

Sub: Seventh Central Pay Commission’s recommendations – revision of pay scales – amendment of Service Rules/Recruitment Rules.

The undersigned is directed to refer to this Department’s OM of even number dated 9th August, 2016 regarding amendment of Service Rules/Recruitment Rules by replacing the existing Pay Band and Grade Pay with the corresponding Level in the Pay Matrix in the revised pay structure recommended by the Seventh CPC and notified in the CCS(Revised Pay) Rules, 2016.

2. Subsequently, this Department held meetings in October/November, 2016 with the administrative Ministries/Departments to review the progress in the implementation of the OM. An important suggestion made in the meetings was with respect to facilitating the process of consultation with the Legislative Department for drafting notification for amendment of RRs in accordance with OM dated 9th August, 2016 and its Hindi translation so as to expedite the issue of notification. In this regard, this Department in consultation with Legislative Department has prepared a model notification in English and Hindi for use of the Administrative
Ministries/Departments. These are annexed at Annexure I and Annexure II.

3. Another issue which came up in the meeting is with respect to retention of standard Note under Co1.11 incorporated in the Schedule of the RRs regarding the regulation of service rendered prior to implementation of 6 thCPC, in those cases where the issue of upgradation/merger of the posts were involved. The relevant Note reads as follows:

“Note: For the purpose of computing minimum qualifying service for promotion, the service rendered on a regular basis by an officer prior to 1.1.2006/the date from which the revised pay structure based on the 6th CPC recommendations has been extended, shall be deemed to be service rendered in the corresponding grade pay/pay scale extended based on the recommendations of the Commission”

and/or

“Note: For purposes of appointment on deputation/ absorption basis, the service rendered on a regular basis by an officer prior to 1.1.2006/the date from which the revised pay structure based on the 6th CPC recommendations has been extended, shall be deemed to be service rendered in the corresponding grade pay/pay scale extended based on the recommendations of the Commission except where there has been merger of more than one pre-revised scale of pay into one grade with a common grade pay/pay scale, and where this benefit will extend only for the post(s) for which that grade pay/pay scale is the normal replacement grade without any upgradation.”

4. After the implementation of 7 th CPC, there are only a few cases of  merger/upgradation of pay scale. It has been decided in consultation with UPSC that in cases where merger/upgradation of pay are not involved in the recommendations of the 7th CPC, the Note as referred above is not to be prescribed in the RRs/SRs. The guidelines in this regard have also been separately issued. The model notification includes a provision for deletion of the Note.

5. The Ministries/Departments are requested to finalise draft notification for amendment of the SRs/RRs in line with the model notification and thereafter, refer the same to the Legislative Department for vetting. The Legislative Department may dispose of references received from the Ministries/Departments within two weeks. Any amendment which is beyond the scope of the model rules will be finalized in usual process i.e. consultation with DoPT, UPSC and Legislative Department.

6. This Department is monitoring the implementation of the OM dated 09.08.2016. All Ministries / Departments are therefore requested to furnish information as per Annexure-III at the earliest.

Encl.: As above

(Jayanthi G.)
Director (E.I)

To
All Ministries/Departments of Government of India

Annexure-III

Subject: Status regarding amendment of Recruitment Rules in pursuance of OM dated 09.08.2016

Sl.No. Post/Designation Whether RRs notification issued for amendment of RRs as per DoPT OM dated 09.08.2016.
(Yes/No)
If answer is no, current status to be indicated. (Pending in the Ministry / Legislative Department / Any other Reason)

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7th Pay Commission: Will BJP pay the price for not implementing 7CPC before Assembly polls?

7th Pay Commission: Will BJP pay the price for not implementing 7CPC before Assembly polls?

The state governments, especially those ruled by opposition parties, used the 7th Pay Commission recommendations as an effective tool to woo voters ahead of Assembly polls.

New Delhi, Jan 16: Prime Minister Narendra Modi led government approved the recommendations of the 7th Pay Commission in June last year. It’s been six months and the Modi government is yet implement the 7th Pay Commission recommendations. However the state governments, especially those ruled by opposition parties, used the 7th Pay Commission recommendations as an effective tool to woo voters ahead of Assembly polls. Uttar Pradesh Chief Minister Akhilesh Yadav and his Uttarakhand counterpart Harish Rawat outsmarted the Modi government on implementation of the 7th Pay Commission ahead of Assembly elections in their states. Will the BJP pay the price for not implementing the 7th Pay Commission before Assembly polls?

The Assembly Elections will be held in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur in the first quarter of the year. Of the five states, three – Uttar Pradesh, Uttarakhand and Goa – have announced they will implement the recommendations of the 7th Pay Commission. While Uttar Pradesh is governed by Samajwadi Party, Uttarakhand in under Congress rule. Bharatiya Janata Party (BJP) is in power in Goa.

When the demonetisation drive of Prime Minister Narendra Modi was making headlines in December last year, Chief Minister Harish Rawat led Uttarakhand government announced it will implement the 7th Pay Commission recommendations. Uttarakhand was the first to implement the 7th Pay Commission’s recommendations. With the populist announcement, Harish Rawat hopes to fight anti-incumbency in the state.

Similarly, Uttar Pradesh CM Akhilesh Yadav announced implementation of the 7th Pay Commission on December 13 last year, months before the crucial Assembly polls. The implementation of the 7th Pay Commission is likely to benefit more than 21 lakh state government employees, teachers and pensioners. The move is being seen by many as an attempt to offer sops to the government employees ahead of the crucial state assembly polls in 2017.

Goa, where the ruling BJP is fighting with Congress and Aam Aadmi Party, also announced it will implement the 7th Pay Commission recommendations before the model code of conduct came into force on January 4.

With pay hike decision under the 7th Pay Commission, the parties holding power in poll-bound states are trying to influence about 28 lakh employees and pensioners, and their dependents during the upcoming polls. On the other hand, the Modi government lost this battle politically as the model code of has come into force. It means the Modi government cannot announce the implementation of the 7th Pay Commission before March 8, by when the assembly polls would be over and budget presented.

Be the first to comment - What do you think?  Posted by admin - January 16, 2017 at 6:21 pm

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7th Pay Commission: Personally pained as Government ignored genuine demands, says NJCA convenor Shiv Gopal Mishra

7th Pay Commission: Personally pained as Government ignored genuine demands, says NJCA convenor Shiv Gopal Mishra

NJCA had led a relentless campaign to seek upgradation of minimum salary to Rs 26,000, instead of Rs 18,000 proposed by 7th Central Pay Commission.

New Delhi, Jan 4: National Joint Council of Action (NJCA) convenor Shiv Gopal Mishra once again lashed out at Centre for not paying heed to the demands of aggrieved central government employees. Mishra, who also heads the All India Railwaymen’s Federation (AIRF), claimed that he is personally pained since the government has ignored the genuine demands raised on behalf of employee unions. Mishra listed two of the most genuine demands which he wanted Centre to fulfill: Upscaling of minimum salary to Rs 26,000 and enabling Old Pension System for employees hired on and after 1st January, 2014.
“In the recommendations of the 7th CPC both the demands were ignored,” Mishra said in his statement issued for AIRF. He further added, “held meetings with the Cabinet Secretary, Secretary(DoP&T), Secretary (Exp.) etc. of the Government of India, to extract maximum benefits for all of you, but up till now nothing fruitful has emerged,” he added.
Centre had constituted a High Level Committee headed by Finance Secretary Ashok Lavasa to look into the anomalies raised following the implementation of 7th Pay Commission. The allowances of government employees, along with arrears would only be cleared after the committee submits is report. The allowances are likely to be rolled out following the Union Budget.
The report of 7th Pay Commission was notified by Union Government in July. Although the salaries have been hiked using 2.57 fitment factor. However, the hike in allowances were put on hold as employee unions had raised objections. The 7th Pay Commission report submitted by Justice (retd) AK Mathur subsumed 37 and abolished 51 out of the incumbent 196 allowances.
Apart from the National Council (Staff Side), Confederation of Central Government Employees & Workers have launched a campaign against Centre, seeking fulfillment of 21-point-charter of demands. They have called for a nationwide strike on February 15.

 

Be the first to comment - What do you think?  Posted by admin - January 4, 2017 at 10:16 am

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Meeting with the Staff Side (JCM) on the recommendations of the 7th CPC and their implementation

Meeting with the Staff Side (JCM) on the recommendations of the 7th CPC and their implementation.

Shiva Gopal Mishra
Secretary

No.NC/JCM/2016

Ph.: 23382286

National Council (Staff Side),
13-C, Ferozshah Road, New Delhi – 110001
E Mail : ncjcm.np@gmail.com

Dated: December 29, 2016

The Addl. Secretary(Exp.),
Department of Expenditure,
Ministry of Finance,
North Block,
New Delhi

Dear Sir,

Sub: Meeting with the Staff Side (JCM) on the recommendations of the 7th CPC and their implementation.

We had our last meeting on 24th October, 2016, wherein, while concluding, it was assured that, you would consult the Secretary (Expenditure) and would hold next meeting shortly. It is quite unfortunate that, so far much time have passed and nothing has been heard from your end.

Inordinate delay in Revision of Minimum Wage and Fitment Formula is creating lots of problems, and the Central Government Employees are agitated because this issue had been agitating their minds since implementation of 7th CPC Report

You are, therefore, requested to call a meeting with the Staff Side(JCM) to discuss and resolve these issues at the earliest.

With Kind Regards!
Sincerely yours,
(Shiva Gopal Mishra)

Source : ncjcmstaffside

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After 7th Pay Commission salary hikes, move on to raise minimum wage ceiling under EPF

After 7th Pay Commission salary hikes, move on to raise minimum wage ceiling under EPF

The minimum wage ceiling under the Employees’ Provident Fund (EPF) could soon be raised to Rs 25,000 from the existing Rs 15,000.

A hike in the wage limit as proposed would mean all employees drawing basic salary Rs 25,000 would have to compulsorily contribute to the provident fund.

The minimum wage ceiling under the Employees’ Provident Fund (EPF) could soon be raised to Rs 25,000 from the existing Rs 15,000. A proposal to to enhance the limit is likely to be sent by the Employees’ Provident Fund Organisation (EPFO) to the government. A decision to propose the change has been taken at a recent meeting of Sub-committee of the Central Board of Trustees, EPFO, on contract workers held on November 7. Central Board of Trustees (CBT) is the highest decision-making body of the EPFO.

A hike in the wage limit as proposed would mean all employees drawing basic salary Rs 25,000 would have to compulsorily contribute to the provident fund. However, those drawing above that limit will have the option to become member of the provident fund, and can opt out if they want to.

The move comes in wake of changes in the wage structure in accordance with the proposal of the 7th Pay Commission. Trade union representatives at the CBT sub-committee meeting pointed out that the minimum wage of Central government employees after implementation of the Pay Commission report has been hiked to Rs 18,000. and hence the EPFO’s wage ceiling of Rs 15,000 needs to be altered. They pointed out that there could be further increase in minimum wages from the Rs 18,000 is likely with the trade unions demanding a minimum wage of at least Rs 21,000 to Rs 22000.

In fact, the Employees’ Deposit Linked Insurance Scheme (EDLI) is directly linked to the minimum wage ceiling. At present, If an employee is earning up to Rs 15,000 he or she can avail of benefits under the Employees Deposit Linked Insurance Scheme (EDLI). The scheme provides life insurance of up to Rs 6 lakhs.

Source: FE

Be the first to comment - What do you think?  Posted by admin - December 30, 2016 at 9:59 am

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7th CPC Implementations for ESIC Pensioners

7th CPC Implementations for ESIC Pensioners

EMPLOYEES STATE INSURANCE CORPORATION
PANCHDEEP BHAWAN C.I.G.MARG NEW DELHI

No.A-40/12/7th CPC/2016-A/cs-IV

Dated : 22.12.2016

To
All the Regional Directors/Dir.(I/c)/Jt.Dire(I/c) of Ros/SROs
Dir. (Med.) Delhi/NOIDA/K.K.Nagar
SSMC/SMC of all States.
Dean of all Medical/Dental Educational Institutions.
Medical Superintendents of ESI Hospitals/ESIC Model Hospitals

Subject : Implementation of the recommendation of 7th CPC – reg

Sir,

Please refer to E-III, Hqrs. Office Memo No.A-27/17/1/7th CPC/2016-E-III dt.01.11.2016 on the above subject. In this connection, the detailed procedure for preparation & sanction of PPO/revision of PPO in r/o pre-2016 pensioners and post 2016 pensioners by the competent authority are as detailed below:

1. For Pre-2016 retirees

a. In case of pensioners (pre-2016) who are drawing pension from Public Sector Banks, the concerned units (Regions / Hospitals / etc.) will authorize the Public Sector Banks for revising the pension / family pension by multiplying factor 2.57 in terms of Para 4.1 and 5 of Deptt. Of P&PW OM No.38/37/2016-P&PPW (A) (ii) dated 04.08.2016 (copy enclosed).

b. The pensioners (pre-2016) who are drawing pension concerned units (Regions / Hospitals / etc.), Head of Office will arrange for re-fixation for pension / family pension by multiplying factor 2.57 in terms of Para 4.1 and 5 of Deptt of P&PW OM No.38/37/2016-P&PPW (A) (ii) dated 04.08.2016.

c. A suitable entry regarding the revised pension / family pension shall be recorded by the Pension Disbursing Authorities (including Public Sector Banks) in both halves of the Pension Payment Order as stipulated in Para 9 of Deptt. of P&PW OM No.38/37/2016-P&PPW (A) (ii) dated 04.08.2016.

d. In order to have effective monitoring of implementation as envisaged in Agenda No. I (3) of Minutes of Meeting issued by Central Pension Accounting Office, Ministry of Finance, Govt. of India vide letter dated 30.08.2016 (copy enclosed), after issuing authorisation for pension revision in case of pre-2016 retirees, the Deputy Director (Fin.) / Assistant Director (Fin.) of concerned units (Regions / Hospitals / etc.) shall check & verify the amount disbursed on account of revised pension / family pension from pension scroll as received from banks in respect of each pensioner. In case of any discrepancy the same shall be brought to the notice of concerned bank immediately to ensure timely correction of such discrepancies at the earliest.

e. As stipulated in Agenda No. I (4) of Minutes of Meeting issued by Central Pension Accounting Office, Ministry of Finance, Govt. of India vide letter dated 30.08.2016 regarding report of revision of cases, in all above cases a certificate along with calculation sheet will be sent by Head of Office of concerned units (Regions / Hospitals / etc.) to Accounts-IV Branch of ESIC Hqrs. Office stating that due care was taken and correctness has been ascertained and also corrective action has been taken thereof.

2. For Post-2016 retirees

a. A reference is also invited to Deptt. Of P&PW OM No.38/37/2016-P&PPW (A) (i) dated 04.08.2016 (copy enclosed) regarding revision of pension of post-2016 pensioners/family, in case of pensioners whose pension was finalized under 6th CPC need to be revised under 7th CPC recommendations after doing the pay fixation under 7th CPC by concerned / respective units (Regions / Hospitals / etc.). Accordingly, for Group C,on pay fixation under 7th CPC, the concerned units will revise above mentioned pension cases of post-2016 retirees and issue revised PPOs after following the due procedures and pre-audit. The concerned units will also calculate the differential amount of gratuity, commutation, etc., based on the revision of each pension cases under 7th CPC recommendations. A separate committee may be constituted at unit level who will verify the pension revision as per 7th CPC / pre-audit each pensioner cases. In all cases a certificate along with calculation sheet will be sent by Head of Office of concerned units (Regions / Hospitals / etc.) to Accounts-IV Branch of ESIC Hqrs. Office stating that due care was taken and correctness has been ascertained and also corrective action has been taken thereof.

b. Similarly, in case of Group A & B, the concerned units (Regions / Hospitals / etc.) will ensure timely preparation of revised pension papers (based on pay fixation under 7th CPC) along with calculation sheet in accordance with the instructions contained in Deptt. Of P&PW OM No.38/37/2016-P&PPW (A) (i) dated 04.08.2016 (copy enclosed) regarding revision of pension of post-2016 pensioners/family for submission to Accounts-IV Branch of ESIC Hqrs. Office for further issue of revised PPOs. In these cases, Accounts-IV Branch of ESIC Hqrs. Office will ensure the compliance of pre-audit of each and individual cases of revision of pension before issue of revised PPOs

It is to further mention that units who have already initiated / undertaken the revision of pension/family pension in reference to E-III, Hqrs. Office Memo No.A-27/17/1/7`h CPC/201.6-E-III dt.01.11.2016 on the above subject are also required to comply with the above procedure at once.

This issues with the approval of Competent Authority.

Yours faithfully ,
(B.S.SANDHU)
DIRECTOR (FIN.)

Order Copy

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7th CPC – Departmental Anomaly Committee Meeting

7th CPC – Departmental Anomaly Committee Meeting

Meeting of the Departmental Anomaly Committee to discuss the anomalies arising out of the implementation of the 7th CPC in respect of Defence Civilian Employees

F.No.17(01)/2016-D(Div-I)
Government of India
Ministry of Defence
(Department of Defence)

Sena Bhawan, New Delhi,
Dated: 20 December 2016

OFFICE MEMORANDUM

Subject: Meeting of the Departmental Anomaly Committee to discuss the anomalies arising out of the implementation of the 7th CPC in respect of Defence Civilian Employees

A meeting of the Departmental Anomaly Committee will be held under the chairmanship of Additional Secretary (J) for preliminary discussion with the respesentatives of the Defence Civilian Federations about the anomalies arising out of the implementation of the 7th CPC as under:

Date / Time / Venue
26th Dec. 2016 (Monday)/ 11.30 A.M./Room No.102, South Block, New Delhi

2. The members of the Committee (as constituted vide MoD O.M.17(01)/2016-D(Viv-I) dated 6th October 2016) are requested to make it convenient to attend the meeting. The Federations are also requested to depute two representatives each to attend the meeting, as per schedule/venue indicated above.

sd/-
(Pawan Kumar)
Under Secretary to the Govt of India

Authority: http://www.mod.nic.in/

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7th pay commission: Government mulling over higher allowances without arrears

7th pay commission: Government mulling over higher allowances without arrears

7th-Pay-Commission

New Delhi: The government is considering to give relief to central government employees amid cash crunch, which refusing to ease on even after six weeks of the demonetisation announcement, official sources today said.

“We can expect the higher allowances without arrears under 7th pay commission recommendations in the coming days as the PMO thinks payment of the higher allowances with salaries on salary day cannot be “chaotic”, a close aide of the Finance Minister told The Sen Times.

“The PMO might ask the Finance Ministry to ready the higher allowances proposal without arrears before the budget. The Finance Minister Arun Jaitley can also take some time to formalise this announcement. The issue of arrears of higher allowances may not be reconsidered”, he said.

Another official said the government is considering to make only allowances hike for its employees. “The financial advisors of the government believe it could be tough to give arrears of the higher allowances as millions will queue outside the money dispensers to get higher allowances as the cash crunch may be normalised in three to four months.”, the official revealed.

In the current financial year, the government has given higher basic pay with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance referred to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

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

Earlier, Finance Secretary Ashok Lavasa said, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”

But the government gave extension to the committee up to February 22, 2017 to take cash crunch turn for better.

“The government would comply with the cash crunch to give higher allowances without arrears. The government wishes to give the higher allowances with arrears from August to its employees”, said the sources.

They said the PMO still wants to somehow bring out the higher allowances without arrears for the central government employees now, “but the Finance Ministry cannot take emotional decisions. We hope the announcement for the higher allowances will come with arrears soon after the budget.”

“The committee on allowances proposed higher allowances from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016,” the sources also said.

TST

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Bonanza for Central government employees: 7th Pay Commission recommendations rolled out

Bonanza for Central government employees: 7th Pay Commission recommendations rolled out

New Delhi: The government had in January 2016 had set up the high-powered panel to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The Union Cabinet on June 29 cleared the recommendations of the 7th Pay Commission headed by AK Mathur in respect of the hike in basic pay and pension. However, the decision on 7th Pay Commission suggestions relating to allowances had been referred to a Committee headed by the Finance Secretary.

The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing allowances will continue to be paid at the existing rates.

The 7th Pay Commission examined a total of 196 existing allowances and, by way of rationalization, recommended abolition of 51 allowances and subsuming of 37 allowances. Given the significant changes in the existing provisions for allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on allowances.

On 29 June 2016, Government accepted the recommendation of 7th Pay Commission Report with meager increase in salary of 14 percent after six month of intense evaluation and successive discussions. The Finance Minister of India claimed it historical increase of salaries due to little knowledge of Sixth Pay Commission.

The new scales of pay provide for entry-level basic are now up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. Secretary, it would go up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary will be Rs 56,100.

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

Here are the Key Highlights

  • Gratuity ceiling doubled to Rs 20 lakh
  • Housing loan allowance hiked from Rs 7.5 lakh to Rs 25 lakh
  • Minimum pension increased from Rs 3,500 to Rs 9,000
  • 7th Pay Commission recommendations to be implemented within 6 months from due date
  • Existing rates of monthly contribution towards Group Insurance to continue
  • Total annual burden of pay, pensions and arrears of 7th Pay Commission recommendations: Rs 1, 02,100 crore
  • 7th Pay Commission recommendations on allowances to be referred to a Committee headed by Secretary
  • Based on minimum pay, fitment factor of 2.57 approved for revising pay of all employees uniformly across all level
  • Minimum pay fixed at Rs 18,000 per month; maximum pay at Rs 2.25 lakh
    The Cabinet approval will benefit nearly 50 lakh central government employees and 58 lakh pensioners
  • Pay hike to be implemented from January 1, 2016
  • Budgetary allocation

While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries. Around Rs 70,000 crore has been provisioned for it.
Source: zeenews

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Ex-gratia lump sum compensation – Recommendations of the 7th Central Pay Commission

Ex-gratia lump sum compensation – Recommendations of the Seventh Central Pay Commission.

Office of the CGDA, Ulan Batar Road, Palarn, Delhi Cantt-10

No.5613/AT-P/Vol.XXXI/Ex-Grata

Dated: 20/12/2016

To,
The PCDA (P),
Allahabad-211014

Subject: Ex-gratia lump sum compensation – Recommendations of the Seventh Central Pay Commission.

Government of India, Ministry of Defence D(Pay/Services) vide their letter No.20(2)/2016/D(Pay/Services) dated 2nd November,2016 has issued order on the above subject matter. The same has been uploaded on HQrs. Office website viz. www.cgda.nic.in that may please be downloaded and circulated to all concerned with necessary implementation instructions. The copy of the implementation instructions may also be uploaded on your website under intimation to this HQrs. Office.

Jt.CGDA (Pen) has seen

(A.K. Maiviya)
Sr.AO (AT-Pen)

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Minutes of the Seventh meeting of the Committee set up to examine feasibility of implementation of recommendation of 7th CPC for revision of pension of pre-2016 pensioners held on 17.10.2016

7th CPC Revision of Pre-2016 Pension: Minutes of the 7th Meeting of the Committee to examine the feasibility of implementation of 7th CPC recommendations

No. 38/37/2016-P&PW(A)
Government of India
Ministry of Personnel, P.G. and Pensions
Department of Pension & Pensioners Welfare

3rd Floor, Lok Nayak Bhavan
New Delhi, dated the 31st October, 2016

OFFICE MEMORANDUM

Subject: Minutes of the Seventh meeting of the Committee set up to examine feasibility of implementation of recommendation of 7th CPC for revision of pension of pre-2016 pensioners held on 17.10.2016 -reg.
The ‘minutes of the seventh meeting of the Committee set up to examine feasibility of implementation of recommendation of 7th CPC for revision of pension of pre-2016 pensioners held under the Chairmanship of Special Secretary & FA, Ministry of Home Affairs with JCM (Staff Side) on 17.10.2016 at Sardar Patel Bhawan, New Delhi is hereby forwarded for information and further necessary action.

Sd/-
(Harjit Singh)
Director (Pension Policy)

Minutes of the 7th meeting of the Committee set up to examine feasibility of implementation of recommendation of Seventh CPC for revision of pension of Pre-2016 held on 17.10.2016 at Sardar Patel Bhawan, New Delhi.

7th meeting of Committee for examination of feasibility of implementation of recommendation of 7th Central Pay Commission for revision of pension of pre-2016 pensioners was held on 17.10.2016 at Sardar Patel Bhawan, New Delhi. As Secretary (Pension) was on leave, Ms. Sanjeevanee Kutty, Special Secretary & Financial Advisor, Ministry of Home Affairs chaired the meeting. The following were present from official side:

1. Sh. Ashok Kumar Dash, Member (Personnel), Department of posts.
2. Sh. Rozy Agarwal, Joint (CGDA), Ministry of Defence.
3. Sh. R. K. Chaturvedi, Joint Secretary, Implementation Cell, Department of Expenditure.
4. Ms. Santosh, Joint Secretary, Department of Ex-Servicemen Welfare.
5. Ms. Vandana Sharma, Additional Secretary, DOP&PW (representing Secretary, Department of Pension & PW).
6. Sh. Sanjay Singh, Chief Controller (Pension), CPAO (representing Controller General of Accounts).
7. Sh. Tanveer Ahmad, Executive Director, Railway Board (representing Member Staff Railway Board).

2. The following were present from JCM (Staff side) :

1. Shiv Gopal Mishra, Secretary, JCM.
2. Sh. Guman Singh, Member
3. Sh. J. R. Bhosale, Member
4. Sh. K. K. N. Kutty, Member
5. Sh. C. Srikumar, Member
6. Sh. M. S. Raja, Member

3. Recalling the discussion in the last meeting on 6.10.2016, Additional Secretary (Pension) requested the Staff side of the JCM for their considered views in regard to the alternate method of fixation of notional pay in each intervening Pay Commissions for revision of pension as on 1.1.2016, which was suggested by the Committee in that meeting.

4. The Staff side appreciated the concern shown by the Committee for finding a viable solution to the issue of revision of pension of Pre-2016 pensioners. They agreed that the increments method recommended by the Pay Commission for fixation of notional pension for revision of pension of pre-2016 pensioners may result in large scale anomalies and that the method of notional pay fixation in each intervening Pay Commission is a much more rational and scientific method. The pay fixation method would benefit almost all pre-2016 pensioners and would ensure smoother and faster revision of pension. In fact, JCM (Staff side) had, itself, suggested the pay fixation method for revision of pension to the Seventh CPC.

5. JCM (Staff side), however, mentioned that since the increment method recommended by the Seventh CPC has been accepted by the Cabinet subject to its implementation being found feasible by the Committee, a small number of pensioners who are likely to get higher benefit by increments method (mostly retired before 1.1.1996) may feel aggrieved if their pension is not revised by that method. This may lead to litigation.

6. Sh. Tanveer Ahmad, Executive Director, Railway Board mentioned that pensioners who were promoted just before their retirement would be at a disadvantageous position on implementation of the Increment Method.. Chief Controller, CPAO mentioned that when large scale anomalies are visualized even before actual implementation of the increment method, it would not be advisable to go ahead with implementation of that method.

7. Staff side suggested that both the options i.e. Increments Method as well as Pay Fixation Method may be offered to the pre-2016 pensioners along with the 2.57 Fitment Method (already implemented) and they may be asked to choose one of these options for revision of their pension w.e.f. 1.1.2016. This may also reduce the chances of anomalies on account of implementation of the Increments Method.

8. Special Secretary & FA, Ministry of Home Affairs informed that the Committee will take an appropriate view in the matter after taking into account all the relevant aspects including the views expressed by the Staff side of the JCM.

9. The meeting ended with a vote of thanks to the chair.

Source: http://www.airfindia.org

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7th Pay Commission: Central Government employee union calls nationwide strike on February 15, demand settlement of 21 points charter demand

7th Pay Commission: Central Govt employee union calls nationwide strike on February 15, demand settlement of 21 points charter demand

After a massive Parliament march conducted by the central government employees on December 15, the union has called again for a nationwide strike on February 15, 2017, demanding the Union Government to make an immediate settlement of their 21 points charter demands in 7th Pay Commission (7CPC). The strike has been called in a joint cooperation by several central government employees union against what they say “the betrayal and breach of assurance by Home Minister Rajnath Singh, Finance Minister Arun Jaitley and Railway Minister Suresh Prabhu”.

On 15th December a massive Parliament march was conducted in which around 15,000 central government employees from all over the states participated. In the Parliament march autonomous bodies employees and pensioners also extended their support by joining the rally. During the rally which the central government employees union view as a success also declared a one-day nationwide strike on February 15.

The strike has been announced by the National President of the Confederation KKN Kutty, Secretary General M Krishnan and several other leaders present at the rally.

According to reports, the rally condemned the authoritarian attitude of the NDA Government and also the breach of an assurance given by the trio Union Ministers to NJCA leaders who met them after the implementation of 7th Pay Commission.

 

What are 21 Points Charter Demands made by central government employees:

1) The central government employees union asked the government to settle the demands raised by NJCA regarding modifications of 7th Pay Commission recommendations as submitted in the memorandum to Cabinet Secretary on 10th December 2015. Honour the assurance given by the Union Ministers to NJCA on 30th June 2016 and 6th July 2016, especially increase in minimum wage and fitment factor. Grant revised HRA at the existing percentage itself ie: 30 per cent, 20 per cent and 10 per cent. Accept the proposal of the staff side regarding transport allowance. Settle all anomalies arising out of implementation of 7th CPC recommendations, in a time bound manner.

2) Implement option-I recommended by 7th Pay Commission and accepted by the Government regarding parity in pension of pre-2016 pensioners, without any further delay. Settle the pension related issues raised by NJCA against item 13 of its memorandum submitted to Cabinet Secretary on 10th December 2015.

3) Scrap PFRDA Act and New Pension System (NPS) and grant pension and Family Pension to all Central Government employees recruited after 1st January 2004, under CCS (Pension) Rules 1972.

4) Treat Gramin Dak Sewaks of postal department as civil servants, and extend all benefits like pay, pension, allowances etc. of departmental employees to GDS. Publish GDS Committee report immediately.

5) Regularise all casual, contract, part-time, contingent and Daily rated mazdoors and grant equal pay and other benefits. Revise the wages as per 7th CPC minimum pay.

6) No downsizing, privatisation, outsourcing and contractorisation of government functions.

7) Withdraw the arbitrary decision of the Government to enhance the benchmark for performance appraisal for promotion and financial up-gradations under MACP from “GOOD” to VERY GOOD” and also decision to withhold annual increments in the case of those employees who are not able to meet the bench march either for MACP or for regular promotion within the first 20 years of service. Grant MACP pay fixation benefits on promotional hierarchy and not on pay-matrix hierarchy. Personnel promoted on the basis of examination should be treated as fresh entrants to the cadre for grant of MACP.

8) Withdraw the draconian FR 56 (J) and Rule 48 of CCs (Pension) Rules 1972 which is being misused as a short cut as purity measure to punish and victimize the employees.

9) Fill up all vacant posts including promotional posts in a time bound manner. Lift ban on creation of posts. Undertake cadre Review to access the requirement of employees and their cadre prospects. Modify recruitment rules of Group-‘C’ cadre and make recruitment on Regional basis.

10) Remove 5% ceiling on compassionate appointments and grant appointment in all deserving cases.

11) Grant five promotions in the service career to all Central Govt. employees.

12) Abolish and upgrade all Lower Division Clerks to Upper Division Clerks.

13) Ensure parity in pay for all stenographers, Assistants, Ministerial Staff in subordinate offices and in all organized Accounts cadres with Central Secretariat staff by upgrading their pay scales. Grant pay scale of Drivers in Loksabha Secretariat to Drivers working in all other Central Government Departments.

14) Reject the stipulation of 7th CPC to reduce the salary to 80 per cent for the second year of Child Care leave and retain the existing provision.

15) Introduce Productivity Linked bonus in all department and continue the existing bi-lateral agreement on PLB wherever it exists.

16) Ensure cashless medical treatment to all Central Government employees & Pensioners in all recognized Government and Private hospitals.

17) Revision of Overtime Allowance (OTA) and Night Duty Allowance (NDA) w.e.f 01.01.2016 based on 7th CPC pay scale.

18) Revision of wages of Central Government employees in every five years.

19) Revive JCM functioning at all levels. Grant recognition of the unions/Associations under CCS (RSA) Rules 1993 within a time frame to facilitate effective JCM functioning.

20) Implementation of the Revised Pay structure in respect of employees and pensioners of autonomous bodies consequent on implementation of CCS (Revised Pay) Rules 2016 in respect of Central Government employees and pensioners w.e.f. 01.01.2016.

21) Implementation of the “equal pay for equal work” judgement of the Supreme Court in all departments of the Central Government.

Source: India

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7th Pay Commission benefits to autonomous bodies and Contract Employees – Government reply

7th Pay Commission benefits to autonomous bodies and Contract Employees – Government reply

Minister’s reply to Loksabha on 7th Pay Commission benefits to autonomous bodies and Contract Employees

Loksabha has published Shri Arjun Ram Meghwal reply regarding 7th Pay Commission benefits to autonomous bodies and Contract Employees.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA

UNSTARRED QUESTION NO: 4128
ANSWERED ON: 09.12.2016

R.P. MARUTHARAJAA
JANARDAN SINGH SIGRIWAL
LALLU SINGH

Will the Minister of FINANCE be pleased to state:-

(a) whether the Government proposes to implement the recommendations of the Seventh Central Pay Commission(CPC) also for the employees of the autonomous bodies including the Council of Advancement of Peoples Action and Rural Technology(CAPART) and the employees working on contract basis under Central Government;

(b) if so, the details thereof and if not, the reasons therefor; and

(c) the details of the amount paid to the employees after implementing the recommendations of the Commission?

ANSWER

MINISTER OF STATE FOR FINANCE

(SHRI ARJUN RAM MEGHWAL)

(a) to (c): An appropriate decision in regard to extension of the recommendations of the 7th Central Pay Commission pertaining to pay matters, as already accepted and notified by the Central Government in respect of Central Government employees, in regard to employees of the Quasi-Government Organizations, Autonomous Organizations and Statutory Bodies, etc set up and funded/controlled by the Central Government, would be taken having regard to all relevant factors. However, there is no proposal at present under consideration to extend revised pay based on the 7th Central Pay Commission, as accepted by the Government in case of regular Central Government employees, in regard to contract employees.

Source : Loksabha

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7th Pay Commission: Salary hike to central government employees affects economic growth

7th Pay Commission: Salary hike to central government employees affects economic growth

New Delhi, Dec 8: Prime Minister Narendra Modi led government on July 29 announced to implement the 7th Pay Commission’s recommendations on salary hike of central government employees. The announcement of implementation of the 7th Pay Commission recommendations made impact of country’s economic growth, said Reserve Bank of India (RBI). The central bank mentioned the 7th Pay Commission in the Monetary Policy Committee (MPC) meeting statement announced on Wednesday that lowered the country’s growth forecast for 2016-17.

The RBI’s Monetary Policy Committee (MPC), during its second bi-monthly monetary policy review – the fifth of the fiscal – lowered the country’s growth forecast for 2016-17 to 7.1 per cent from 7.6 per cent. In its statement, the MPC also revealed the impact of the 7th Pay Commission on the GDP.
“Incorporating the expected loss of growth momentum in Q3 and waning effects in Q4 alongside the boost to consumption demand from higher agricultural output and the implementation of the 7th Central Pay Commission award, gross value added (GVA) growth for 2016-17 is revised down from 7.6 per cent to 7.1 per cent, with evenly balanced risks,” the MPC said in its monetary policy statement.

As estimated by the 7th Pay Commission, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16. These figures are significant.

According to the 7th Pay Commission notification, central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. It had proposed 138.71 percent hike in HRA and 49.79 percent for other allowances. The government is yet to take final call on raising allowances. If the government decides to implement the recommendations of the 7th Pay Commission on allowances, there is a risk of inflation going up.

“The fuller effects of the house rent allowances under the 7th CPC award are yet to be assessed, pending implementation, and have not been reckoned in this baseline inflation path,” the MPC statement of Wednesday said

Source: www.india.com

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