Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits
Dearness Allowance Allowance Committee 7th Pay Commission Income Tax exemption
4% Additional DA for TN State Government Employees from Jan 2017 Allowances Committee Report and Financial Expenditure Committee on 7th CPC Allowances : FM Press Note Income Tax exemption benefit on Housing Loan Interest (FAQ)

Posts Tagged ‘7th Central Pay Commission’

Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission- Revision of pension of pre- 2016 pensioners/family pensioners etc

Dept of Post: Revision of pension of Pre- 2016 pensioners/family pensioners – Govt’s decision on 7th CPC Recommendations

No. 4-3/2017-Pension
Government of India
Ministry of Communications
Department of Posts
(Pension Section)

Dak Bhawan, Sansad Marg,
New Delhi – 110 001
23rd May, 2017

To

All Head(s) of Circles
All Directors/Dy. Directors of Accounts (P)
APS Headquarter
Head of PLI and BD Directorate
Director, Postal Staff College, Ghaziabad
All Directors of Postal Training Centres

Sub: Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission- Revision of pension of pre- 2016 pensioners/family pensioners etc-reg.

Sir/Madam,

I am directed to say that based on the decisions of the Government, Department of Pension and Pensioners’ Welfare has issued O.M. No. 38/37/2016-P&PW(A) dated 12.05.2017 for fixation of pension/family pension of pre-2016 pensioners/family pensioners to the higher of the two formulations. A copy of the OM. is circulated herewith for information and necessary action.

2. The pension/family pension of all pre-2016 pensioners/family pensioners shall be revised in line with instructions contained in the DoP&PW OM. dated 12.05.2017. The higher of the two formulation i.e. (i) the pension/family pension already revised in accordance with DoP&PW O.M. dated 4.8.2016 or (ii) the revised pension/family pension as worked out in accordance with para 4 of the DoP&PW OM. dated 12.5.2017, shall be treated as revised pension/family pension w.e.f 1.1.2016. It shall be the responsibilities of the Head of Department and concerned Director of Accounts (Postal) to revise the pension/family pension of pre-2016 pensioners/family pensioners w.e.f 1.1.2016 in accordance with these orders and to issue a revised pension payment authority.

3. As envisaged in the DoP&PW O.M., the Pension sanctioning Authority (PSA) would impress upon the concerned Head of Office for fixation of pay on notional basis at the earliest. The information can be obtained in Proforma A. Based on notional pay so fixed, the revision proposal will be sent by Pension Sanctioning Authority to concerned DA (P) to apply necessary checks and issue revised authority under the existing PPO number. To facilitate fixation of notional pay, DA (P) will provide copy of PPO/pension papers to concerned PSA immediately on requisition. All PSAs will maintain records of processing cases of retirees year-wise in Proforma 8. DA (P) will maintain data of proposal received and authority issued in software as has been done in case of 6th CPC revision of PPOs.

4. Since there will be large number of cases for revision, concerted efforts of all authorities will be required to accomplish the task. It is requested to take immediate action for revision of pension/family pension at the earliest.

This issues with approval of Secretary (Posts).

Yours faithfully,
Encl: As above
(Smriti Sharan)/
Dv. Director General (Estt.)

Source: [Click here to view full O.M]

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Allowances to Central Government Employees – Questions in Parliament

All allowances (except Dearness Allowance) to Central Government Employees – Questions in Parliament

Allowances to Government Employees

In Lok Sabha on 18.11.2016, the Finance Minister Shri Arun Jaitley has replied in a written form regarding the allowances to Central Government employees recommended by the 7th Central Pay Commission. The complete text of the reply is reproduced and given below for your information.

“In view of the number of representations received with regard to substantial changes with the existing provisions relating to Allowances recommended by the 7th Central Pay Commission, the Government has set up a Committee to examine the recommendations of the Commission on allowances (except Dearness Allowance). The Committee has been asked to go into the recommendations of the Commission on various allowances and, having regard to the representations made by the staff associations as also the suggestions of the concerned Ministries/Departments and to make recommendations as to whether any changes in the recommendations of the Commission are warranted and, if so, in what form. Till a final decision is taken by the Government based on the recommendations of this Committee, all allowances (except Dearness Allowance) will continue to be paid at existing rates in the existing pay structure. The Committee, constituted vide order dated 22.7.2016, is to submit its report within four months.

The Committee has been interacting with various stake-holders to discuss their demands and has so far held discussions with National Council (Staff Side), Joint Consultative Machinery, representatives from staff associations and officials from Ministry of Health & Family Welfare, Ministry of Home Affairs and Department of Posts. The Committee may also interact with the representatives of some other major Ministries/Departments and stakeholders with whom consultations are yet to be held before finalizing its Report. On submission of the Report, the matter pertaining to allowances will be considered by the Government and appropriate decision will be taken thereafter.”

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Revision of Fitment Factor from 2.57 to 2.67 of Pay Matrix Level 13

Revision of Fitment Factor from 2.57 to 2.67 of Pay Matrix Level 13

Impact on Revision of IOR from 2.57 to 2.67 of Pay Matrix Level 13

Government of India accepted the recommendations of 7th Central Pay Commission and resolution No.1-2/2016-IC notified in the Gazette of India, dated the 25th July 2016.

And now, the Central Government has decided to make changes in the Civil Pay Matrix. The IOR of Level-13 of Civil Pay Matrix shall also be enhanced from 2.57 to 2.67. Accordingly, the Civil Pay Matrix as contained in Annexure-1 mentioned in para 6 of the aforesaid Resolution dated the 25th July, 2016 shall be revised.

The below table make it clear the enhancement of pay as per the revision of fitment factor from 2.57 to 2.67.

Revision of Pension

Authority: Finmin Resolution issued on 16.05.2017

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7th CPC Revised Civilian Pay Matrix : Gazettee Notification

7th CPC Revised Civilian Pay Matrix : Gazettee Notification

MINISTRY OF FINANCE

(Department of Expenditure)

RESOLUTION

New Delhi, the 16th May, 2017

No. 1-2/2016-IC. Whereas, vide its Resolution No.1-2/2016-IC notified in the Gazette of India, dated the 25th July, 2016, the Government of India accepted the recommendations of the Seventh Central Pay Commission in respect of the categories of employees covered in the Terms of Reference contained in its earlier Resolution No.1/1/2013-E.III(A) dated the 28th February, 2014.

And, whereas, the Government has considered it necessary to make the following changes in the recommendations of the said Seventh Central Pay Commission in respect of the said categories of employees, namely:-

(1) The Defence Pay Matrix, (except Military Nursing Service (MNS)), which has 24 stages shall be extended to 40 stages similar to the Civil Pay Matrix;

(2) The Index of Rationalisation (IOR) of Level 12A and 13 of Defence Pay Matrix shall be enhanced from 2.57 to 2.67. The Defence Pay Matrix (except MNS) shall, accordingly, be revised;

(3) To rectify the factual errors appearing in Level 10B and Level-12 of the pay matrix of MNS and in view of the changes in the IOR in the Defence Pay Matrix, the first stage of corresponding Levels of Pay Matrix of MNS shall also change. Accordingly, the Pay Matrix (MNS) shall be revised;

(4) The IOR of Level-13 of Civil Pay Matrix shall also be enhanced from 2.57 to 2.67. Accordingly, the Civil Pay Matrix as contained in Annexure-1 mentioned in para 6 of the aforesaid Resolution dated the 25th July, 2016 shall be revised. The revised Civil Pay Matrix is at Appendix-1;

(5) The provision contained in para 13 of the aforesaid Resolution dated 25th July, 2016 shall be revised to the extent that the benefit of pay protection in the form of personal pay of officers posted on deputation under Central Staffing Scheme, as envisaged therein, shall be given effect from 1st January, 2016 instead of 25th July, 2016. Further, this benefit shall also be extended to officers from Services under Central Staffing Scheme, coming on deputation to Central Government, on posts not covered under Central Staffing Scheme.

ORDER

Ordered that this Resolution be published in the Gazette of India, Extraordinary.

Ordered that a copy of this Resolution be communicated to the Ministries/Departments of the Government of India, State Governments, Administrations of Union Territories and all other concerned.

R. K. CHATURVEDI, Jt. Secy.

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Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission – Revision of pension of pre-2016 pensioners/family pensioners, etc

7th CPC Revision of Pension of Pre-2016 Pensioners: Order issued on Committee’s report

No.38/37/2016-P&PW(A)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhawan

Khan Market, New Delhi
Dated, the 12th May, 2017

Office Memorandum

Sub:- Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission – Revision of pension of pre-2016 pensioners/family pensioners, etc.

The undersigned is directed to say that the 7th Central Pay Commission (7th CPC). in its Report, recommended two formulations for revision of pension of pre-2016 pensioners. A Resolution No. 38/37/2016-P&PW (A) dated 04.08.2016 was issued by this Department indicating the decisions taken by the Government on the various recommendations of the 7th CPC on pensionary matters.

2. Based on the decisions taken by the Government on the recommendations of the 7th CPC, orders for revision of pension of pre-2016 pensioners/family pensioners in accordance with second Formulation were issued vide this Department’s OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016. It was provided in this OM. that the revised pension/famiiy pension wet. 112016 of pre-2016 pensioners/family pensioners shall be determined by multiplying the pension/family pension as had been fixed at the time of implementation of the recommendations of the 6th CPC, by 2.57.

3. In accordance with the decision mentioned in this Department’s Resolution No. 38/37/2016-P&PW (A) dated 04.08.2016 and OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016, the feasibility of the first option recommended by 7th CPC has been examined by a Committee headed by Secretary, Department of Pension Pensioners’ Welfare.

4. The aforesaid Committee has submitted its Report and the recommendations made by the Committee have been considered by the Government. Accordingly, it has been decided that the revised pension/family pension w.e.f 01.01.2016 in respect of all Central civil pensioners/family pensioners, including CAPF’s, who retired/died prior to 01.01.2016, may be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died. This will be done by notional pay fixation under each intervening Pay Commission based on the Formula for revision of pay. White fixing pay on notional basis, the pay fixation formulae approved by the Government and other relevant instructions on the subject in force at the relevant time shall be strictly followed. 50% of the notional pay as on 01.01.2016 shall be the revised pension and 30% of this notional pay shall be the revised family pension wet. 1.1.2016 as per the first Permutation. In the case of family pensioners who were entitled to family pension at enhanced rate, the revised family pension shall be 50% of the notional pay as on 01.01.2016 and shall be payable till the period up to which family pension at enhanced rate is admissible as per rules. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.

5. It has also been decided that higher of the two Formulations is the pension/family pension already revised in accordance with this Department’s OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016 or the revised pension/family pension as worked out in accordance with para 4 above, shall be granted to pre-2016 central
civil pensioners as revised pension/family pension w.e.f. 01.01.2016. In cases where pension/family pension being paid w.e.f. 1.1.2016 in accordance with this Department’s OM No. 38/37/2016~P&PW(A) (ii) dated 04.08.2016 happens to be more than pension/family pension as worked out in accordance with para 4 above, the pension/family pension already being paid shall be treated as revised pension/family pension w.e.f. 1.1.2016.

6. Instructions were issued vide this Department’s OM No. 45/86/97-P&PW(A) (iii) dated 10.02.1998 for revision of pension! family pension in respect of Government servants who retired or died before 01.01.1986, by notional fixation of their pay in the scale of pay introduced with effect from 01.01.1986. The notional pay so worked out as on 01.01.1986 was treated as average emoluments/last pay for the purpose of calculation of notional pension/family pension as on 01.01.1986. The notional pension/family pension so arrived at was further revised with effect from 01.01.1996 and was paid in accordance with the instructions issued for revision of pension/family pension of pre-1996 pensioners/family pensioners in implementation of the recommendations of the 5th Central Pay Commission.

7. Accordingly, for the purpose of calculation of notional pay w.e.f. 1.1.2016 of those Government servants who retired or died before 01.01.1986, the pay scale and the notional pay as on 1.1.1986, as arrived at in terms of the instructions issued vide this Department’s OM 45/86/97-P&PW(A) dated 10.02.1998, will be treated as the pay scale and the pay of the concerned Government servant as on 1.1.1986. in the case of those Government servants who retired or died on or after 01.01.1986 but before 112016 the actual pay and the pay scale from which they retired or died would be taken into consideration for the purpose of calculation of the notional pay as on 1.1.2016 in accordance with para 4 above.

8. The minimum pension with effect from 01.01.2016 will be Rs. 9000/- per month (excluding the element of additional pension to old pensioners). The upper ceiling on pension/family pension will be 50% and 30:16 respectively of the highest pay in the Government (The highest pay in the Government is Rs. 250,000 with
effect from 01.01.2016).

9. The pension/family pension as worked out in accordance with provisions of Para 4 and 5 above shall be treated as ‘Basic Pension’ with effect from 01.01.2016. The revised pension/family pension includes dearness relief sanctioned from 1.1.2016 and shall qualify for grant of Dearness Relief sanctioned thereafter.

10. The existing instructions regarding regulation of dearness relief to employed/re-employed pensioners/family pensioners, as contained in Department of Pension & Pensioners Welfare OM. No. 45/73/97-P&PW(G) dated 02.07.1999, as amended from time to time, shall continue to apply.

11. These orders would not be applicable for the purpose of revision of pension of those pensioners who were drawing compulsory retirement pension under Rule 40 of the CCS (Pension) Rules or compassionate allowance under Rule 41 of the CCS (Pension) Rules. The pensioners in these categories would continue to be entitled to revised pension in accordance with the instructions contained in this Department’s OM. No. 38/37/2016-P&PW(A)(ii) dated 4.8.2016.

12. The pension of the pensioners who are drawing monthly pension from the Government on permanent absorption in public sector undertakings/autonomous bodies will also be revised in accordance with these orders. However, separate orders will be issued for revision of pension of those pensioners who had earlier
drawn one time lump sum terminal benefits on absorption in public sector undertakings, etc. and are drawing one-third restored pension as per the instructions issued by this Department from time to time.

13. in cases where, on permanent absorption in public sector undertakings/autonomous bodies, the terms of absorption and/or the rules permit grant of family pension under the CCS (Pension) Rules, 1972 or the corresponding rules applicable to Railway employees/members of All India Services, the family pension being drawn by family pensioners will be updated in accordance with these orders.

14. Since the consolidated pension will be inclusive of commuted portion of pension, if any, the commuted portion will be deducted from the said amount while making monthly disbursements.

15. The quantum of age-related pension/family pension available to the old pensioners/ family pensioners shall continue to be as follows:

Age of pensioner/family pensioner Quantum of pension
From 80 years to less than 85 years 20% of revised basic pension/ family pension
From 85 years to less than 90 years 30% of revised basic pension/ family pension
From 90 years to less than 95 years 40% of revised basic pension/ family pension
From 95 years to less than 100 years 50% of revised basic pension/ family pension
100 years or more 100% of revised basic pension/ family pension

The amount of additional pension will be shown distinctly in the pension payment order. For example, in case where a pensioner is more than 80 years of age and his/her revised pension is Rs.10,000 pm, the pension will be shown as (i) Basic pension = Rs.10,000 and (ii) Additional pension = Rs.2,000 pm. The pension on his/her attaining the age of 85 years will be shown as (i).Basic Pension = Rs.10,000 and (ii) additional pension = Rs.3,000 pm. Dearness relief will be admissible on the additional pension available to the old pensioners also.

16. A few examples of calculation of pension/family pension in the manner prescribed above are given in Annexure-I to this OM.

17. No arrears on account of revision of Pension/Family pension on notional fixation of pay will be admissible for the period prior to 1.1.2016. The arrears on account of revision of pension/family pension in terms of these orders would be admissible with effect from 01.01.2016. For calculation of arrears becoming due on the revision of pension/ family pension on the basis of this O.M., the arrears of pension and the revised pension/family pension already paid on revision of pension/family pension in accordance with the instructions contained in this Department’s OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016 shall be adjusted.

18. it shall be the responsibility of the Head of Department and Pay and Accounts Office attached to that office from which the Government servant had retired or was working last before his death to revise the pension! family pension of Pre-2016 pensioners/family pensioners with effect from 01.01.2016 in accordance with these orders and to issue a revised pension payment authority. The Pension Sanctioning Authority would impress upon the concerned Head of Office for fixation of pay on notional basis at the earliest and issue revised authority at the earliest. The revised authority will be issued under the existing PPO number and would travel to the Pension Disbursing Authority through the same channel through which the original PPO had travelled.

19. These orders shall apply to all pensioners/family pensioners who were drawing pension/family pension before 1.1.2016 under the Central Civil Services (Pension) Rules, 1972, and the corresponding rules applicable to Railway pensioners and pensioners of All India Services, including officers of the Indian Civil
Service retired from service on or after 111973. A pensioner/family pensioner who became entitled to pension/family pension with effect from 01.01.2016 consequent on retirement/death of Government servant on 31.12.2015, would also be covered by these orders. Separate orders will be issued by the Ministry of Defence in regard to Armed Forces pensioners/family pensioners.

20 These orders do not apply to retired High Court and Supreme Court Judges and other Constitutional/Statutory Authorities whose pension etc. is governed by separate rules/orders.

21 These orders issue with the concurrence of Ministry of Finance (Department of Expenditure) vide their ID. No. 30-1l33(c)/2016-IC dated 11.05.2017 and ID. No.30-1133(c)/2016-IC dated 12.05.2017.

22. In their application to the persons belonging to the Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller and Auditor General of India.

23. Ministry of Agriculture etc. are requested to bring the contents of these orders to the notice of Heads of Department/Controller of Accounts. Pay and Accounts Officers, and Attached and Subordinate Offices under them on top priority basis. All Ministries/Departments are requested to accord top priority to the work of revision of pension of ore-2016 pensioners/family pensioners and issue the revised Pension Payment Authority in respect of all ore-2016 pensioners,

24. Hindi version will follow.

(Harjit Singh)
Director

EXAMPLES

Pension-calculation

Source: Pensioners Portal

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Setting up of Anomaly Committee to settle the Anomalies arising out of the implementation of 7th CPC recommendations

7th CPC recommendations: Setting up of Anomaly Committee to settle the Anomalies- CCGGOO writes to DoPT

CONFEDERATION OF CENTRAL GOVERNMENT GAZETTED OFFICERS’ ORGANISATIONS

Add: Old no.4 new no.7 first Street V.V.Colony, Adambakkam, Chennai 600088.
Confederation/Corres/2017-18/4

Dated: 18.04.2017

To

The Secretary,
Department of Personnel and Training,
Ministry of Personnel, Public Grievances and Pensions,
North Block, New Delhi.110001.

Sir,

Sub: Setting up of Anomaly Committee to settle the Anomalies arising out of the implementation of 7th CPC recommendations.

Ref: (1) O.M.No.11/2/2016 JCA dt.16.8.2016.

(2) Confdn/Corres/2016-17/6 dated 19.08.2016 addressed to the Secretary DoPT

The Confederation of Central Government Gazetted Officers’ Organization is an apex level organization, embracing in its fold a number of Gazetted Officers’ Organizations recognized by their respective Central Government departments such as Railway Promotee Officers, Income Tax Gazetted Officers, All India Audit and Accounts Officers, Pay and Accounts Officers(Civil), Postal & Telecom Financial Accounts Officers, Zoological Survey, Botanical Survey, Customs Preventive Officers, Indian Ordinance Factories Gazetted Officers, DRDO Technical Officers, DGQA Engineers, CPWD Engineers, All India Radio Engineers, Postal Officers, Marine Product Export Development Authority Promotee Officers, Statistical Gazetted Officers, Navy Civilian Officers, Defence Accounts Officers, Group B Gazetted Survey Officers etc.

Kindly refer to our letter dated 19.08.2016 wherein this Confederation expressed its anguish that the anomaly committee to rectify the anomalies arising out of the Seventh Central Pay Commission would deal only with those represented by the staff Side JCM organisations and about the absence of apex level mechanism to rectify the anomalies arising out of the 7th Central Pay Commission common to the Gazetted Officers and the promotee Cadre.

It is humbly submitted that this Confederation also needs to be conferred the right to represent about the anomalies arising out of the 7th Central Pay Commission before the committee or any other forum nominated for this purpose.

The Confederation of Central Government Gazetted Officers Organisations’ has been representing the grievances of Gazetted officers of Central Government and has submitted a memorandum of common demands pertaining to Gazetted officers and has offered oral evidence before the seventh pay commission. This being the case, the anomalies arising out of the 7th Central Pay Commission affecting the Gazetted Cadres working in the Central Government needs to be heard and rectified by the specific forum appointed for this specific purpose and denial thereof denies Justice to a large number of Gazetted Officers of the Central Government.

In this backdrop, I am directed to request you Sir, that the anomalies arising out of the Seventh Central Pay Commission affecting the Gazetted and Promotee Officers common to two or more departments be heard by this committee or any other separate committee exclusively for this purpose. It is a matter of regret that our repeated representations remain unresponded. More than lakh Gazetted officers are seeking to represent their Grievances on anomalies through this Confederation before the Government.

Therefore, I request your good self to intervene in this matter and provide a favorable climate to the Gazetted and Promotee Officers of the Central Government. Further, we shall be thankful to you Sir, if you could give us an opportunity to explain our position in respect of anomalies arising out of 7th Central Pay Commission affecting the Gazetted officers and promotee Officers.

Yours Faithfully,
sd/-
(S.Mohan)
Secretary General

Source: CCGGOO pdf

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Clarifications and update on the Cabinet decisions on pay and pensionary issues emanating out of the 7th Central Pay Commission: By Maj Navdeep Singh

Clarifications and update on the Cabinet decisions on pay and pensionary issues emanating out of the 7th Central Pay Commission: By Maj Navdeep Singh

There is a press note floating around on social media regarding certain decisions taken by the Cabinet related to pay and pensionary modalities related to the 7th Central Pay Commission (CPC). Though many have questioned its veracity, this is to confirm that it is absolutely a valid document and has been officially issued by the Ministry of Finance.

That said, let me run through some of the important decisions taken by the Cabinet, clarifications thereon and their impact. Please note that the new Pay Rules issued by the Ministry of Defence do not take into account the changes in the pay structure or removal of anomalies and these shall be incorporated through separate amendments in the rules issued on 03 May 2017.

Restoration of Percentage based Disability Pension Rates

The 7th CPC had recommended ‘flat/slab’ rates of disability pension for the defence services rather than the ones based upon ‘percentage of pay’. Civil disabled personnel were however retained on the percentage system as before. As stated earlier, frankly, I never expected this regressive 7th CPC recommendation to be accepted by the Government, but unfortunately it was. While recommending this aspect, the 7th CPC had also made unfounded and uncharitable remarks against disabled soldiers by casting aspersions on those who have incurred disabilities while in service which was discussed in detail by me earlier in my opeds, here and here. This resulted in a massive decrease after the 7th CPC resulting in a payout even lower than 6th CPC rates for almost all post-2016 retirees of all ranks and also for pre-2016 retirees of certain ranks. The arbitrariness of this decision becomes evident from the following chart at the apex levels:

(100% Disability)
Rank
Rates under the
6th CPC as on
31 Dec 2015
Rates applicable
after the 7th CPC
as on 01 Jan 2016
Lt Gen Rs 52,560 Rs 27,000
Head of Central Armed Police Force Rs 52,560 Rs 67,500

Thankfully, the then Defence Minister, Mr Manohar Parrikar, fully understood the issue and took personal interest in getting the issue referred to an Anomaly Committee. The Defence Services HQ as well as the Ministry, and even civilian employee organisations, supported the resolution of this anomaly which now stands addressed and the Cabinet has decided to retain the old system of calculation on percentage basis, that is, 30% of pay shall remain the disability element for 100% disability. I however do hope that a protection clause is introduced for pre-2016 retirees of lower ranks who stood to gain from the slab rates.

Improvement in Pension calculation system for pre-2016 civil and defence retirees

The Cabinet has also accepted an improvement over and above the system of pension calculation which was finally effectuated after the 7th CPC. Rather than basing the pensionary calculations on the “Old Pension X 2.57″ formula, an option would be provided to calculate the pension based upon the notional pay stage from which the employee had retired as opposed to the minimum of pay as was the system followed till the 6th CPC. Calculation of pension in this manner would definitely enhance the pension of civil pensioners and perhaps a small number of defence pensioners, who, in all probability would be provided the opportunity of choosing the most beneficial option, that is, the new formula, 2.57 multiplication formula or OROP rates. Contrary to popular perception, this does not exactly result in OROP for pre-2016 civil employees as is being projected, since while this is based on notional data, the military OROP is operated on live date of fresh retirees, moreover while this system is expected to be revised only after ten years, the military OROP as per the current scheme is meant to be revised after every five years.

Issuance of Pay Rules rather than Instructions on Pay

There were messages that the Chiefs of the Defence Services have been sidelined and downgraded since the earlier system of issuance of Special Army Instructions, Special Navy Instructions and Special Air Force Instructions (SAI/SNI/SAFI) has been discontinued and a new dispensation of ‘Pay Rules’ has been initiated. This seems to be the negative imagination of fertile minds. SAI/SNI/SAFI were never issued under the authority of the Chiefs of the Defence Services HQ but were always issued by the Ministry of Defence, that is, the Government of India. ‘Orders’ such as Army Orders (AO) etc were (and are) issued by the Defence Services HQ under the power of the Chiefs. The new Pay Rules have been promulgated under the authority of Article 309 of the Constitution of India and are statutory in character rather than being mere executive instructions like was the case till now. With this, the pay rules of the Defence Services are at par with the statutory pay rules of the civil services which are also issued under the authority of Article 309 of the Constitution of India.

Defence Pay Matrix to have 40 stages

The 7th CPC had recommended only 24 stages in the defence matrix while 40 stages were provided to civilians. This anomaly has been rectified and now the defence pay matrix shall also have 40 stages. This will particularly be helpful for JCOs towards the retiring years and will also beneficially affect their pension and other retiral benefits.

Multiplication factor of 2.67

This anomaly had been rectified earlier for Brigadiers and a multiplication factor of 2.67 had been applied for the said rank. Now the same benefit has also been extended to Lieutenant Colonels, Directors to Government of India and Colonels, that is, Levels 12A and 13 of the Pay Matrix.

Other Anomalies

There shall be pay protection for the amount of Military Service Pay (MSP) on promotion from the rank of Brigadier to Major General. It may be recalled that MSP is not entitled to ranks above the rank of Brigadier. No decision has been taken by the Government on the aspect of Non Functional Upgradation till now since the matter is being considered sub judice. On directions of the Supreme Court, the Government is re-considering the issue of NFU for Central Armed Police Forces for which a meeting was recently held. The issue is to be considered by the Government and the fresh decision is to be placed before the Supreme Court in August 2017. The most pertinent anomaly of enhancement of Military Service Pay, especially for JCOs, also remains pending along with other matters and probably these issues would be clearer after various anomaly committees submit their reports and a decision is taken thereafter by the Cabinet. The committee on allowances has already submitted its report which will now be examined by the Government. Unlike pay and pension which are admissible retrospectively from 01 January 2016, most freshly rationalized allowances shall only be admissible prospectively.

This is all I have to say at present, please DO NOT mail me individual queries on email or social media. You are free to discuss the above @ the comments section of this post.

Thank You.

Source: Maj Navdeep Blog

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7th CPC Pension Calculation: Option-1 recommended by 7th CPC is rejected

7th CPC Pension Calculation: Option-1 recommended by 7th CPC is rejected

Option-1 recommended by 7th CPC is rejected

UPDATE ON STANDING COMMITTEE MEETING OF NATIONAL COUNCIL JCM HELD ON 03.05.2017.

Meeting of the Standing Committee of National Council (JCM) held on 03.05.2017. Only Action Taken Report (progress report) on old items discussed in the Standing Committee meeting held on 25.10.2016 was discussed from 3 to 7 PM.

The protest of the staffside regarding abnormal delay in implementation of revised allowances from 01.01.2016 , increase in minimum pay and fitment formula , Option -1 parity of Pensioners , revision of pension and grant of dearness relief to autonomous body penioners etc was conveyed to Secretary , Department of Personnel who chaired the meeting. The proposed move to close down DGS&D was also raised.

To discuss the new items another meeting will be held shortly.

On behalf of Confederation Coms: K.K.N.Kutty , M.Krishnan and M.S.Raja attended. Cabinet has approved the parity in pension recommended by the Pension Committee constituted by Govt w.e.f.01.01.2016. (whether it is 5th CPC recommended parity can be confirmed only after seeing the orders).

It is confirmed that Option-1 recommended by 7th CPC is rejected.

M.KRISHNAN
Secretary General
Confederation.

Source: Confederation

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Allowing the bunching benefit to Assistant Accounts Officers as per the recommendations of 7th Central Pay commission

7th Central Pay commission – Allowing the bunching benefit to Assistant Accounts Officers: AICAEA writes to CGA

All India Civil Accounts Employees Association
Category II
CENTRAL HEADQUARTER

No.AICAEA CAT II/CHQ/2017/27

Dated. 27.04.2017

To

The Controller General of Accounts
Ministry of Finance, Department of Expenditure
Mahalekha Niyantrak Bhawan
E- Block ,GPO Building -INA
New Delhi 110023

Subject: Allowing the bunching benefit to Assistant Accounts Officers as per the recommendations of 7th Central Pay commission- Regarding.
Madam,

I am to directed refer to the Department of Expenditure, Implementation Cell order no. 1-6/2016-IC dated 07th Sept. 2016 on the subject cited above.

It is found that the AAOs with Grade Pay of 4800/- and drawing pre revised pay ranging from Rs.14900/- to 17,910/- had been fixed at the minimum pay of Rs. 47600/- as per 7th CPC. But as per order, the AAOs pre revised pay having pay range between Rs. 15350 to Rs. 18360 are also eligible for bunching of pay w.r.t. their juniors who were drawing lesser pay as on 31.12.2015. A comparative statement w.r.t. Shri Babu Balram Jee is enclosed for ready reference.

In absence of your clear order, different ministries are treating the matter in different ways, resulting the uncalled for discrepancies and irregularities

Under these circumstances, I request you to kindly issue a conclusive order, stating the eligibility criteria and a ready reckoner of pay fixation after bunching in terms of old pay. This will end the confusion and delay in settling the cases further.

Enclosure:- as stated above Yours sincerely,

(DEBRAJ SINGHA ROY)
SECRETARY GENERAL

Source: http://nfcaahqnd.blogspot.in

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7th CPC Allowances Committee likely to submit its final report only by early next week: Karnataka CoC

7th CPC Allowances Committee likely to submit its final report only by early next week : Karnataka CoC

Allowances for CG employees

Comrades,
The allowances committee report is likely to submit its final report to the Honourable Finance Minister only by early next week, there after the report shall be placed for cabinet approval , the whole process may take another 15 days.

Comradely yours
(P.S.Prasad)
General Secretary

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

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Meeting of Departmental Anomaly Committee to settle the anomalies arising out of the implementation of 7th CPC

7th CPC Anomalies – Meeting of Departmental Anomaly Committee

7thCPC-Departmental-Anomaly-Committee

Sub:- Meeting of Departmental Anomaly Committee to settle the anomalies arising out of the implementation of 7th CPC

I am directed to bring to your kind attention that Departmental Anomaly Committee for Railways consisting of representatives of official side and the staff side to settle the anomalies arising out Of the 7th Central Pay Commission’s recommendations was constituted vide Railway Board’s letter dated 5.10.2016. Subsequently, the definition of anomaly has also been modified vide Board’s letter dated 29.03.2016.

2 Now, it is proposed hold the first meeting of the Departmental Anomaly Committee to discuss the various anomalies arising out of the implementation of 7th CPC’s recommendations, It is requested to advice a convenient date of time for holding the meeting along with the tentative agenda/anomalies coming within the definition of anomaly already circulated vide Railway Board’s letter dated 29.032016 to be discussed in the said meeting.

On receipt of the suggestions the final agenda and the schedule of the meeting will be advised.

Source: AIRF

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Pay Commission Impact on Medical Institutes

7th Pay Commission impact on Medical Institutes

GOVERNMENT OF INDIA
MINISTRY OF HEALTH AND FAMILY WELFARE
LOK SABHA

UNSTARRED QUESTION NO: 5682

ANSWERED ON: 07.04.2017

Pay Commission Impact on Medical Institutes

RAM CHARITRA

Will the Minister of

HEALTH AND FAMILY WELFARE be pleased to state:-

Will the Minister of HEALTH AND FAMILY WELFARE be pleased to state:

(a) whether it is a fact that the medical institutes have expressed their inability to comply with the Government’s circular to generate 30 per cent of the additional financial impact incurred on implementing the Seventh Pay Commission;

(b) if so, the details thereof and the reaction of the Government thereto; and

(c) the corrective steps proposed to be taken up by the Government in this regard?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF HEALTH AND FAMILY WELFARE
(SHRI FAGGAN SINGH KULASTE)

(a) to (c): Government has not put any mandatory condition on Medical Institutes to generate 30% of the additional financial impact incurred on implementing the 7th Central Pay Commission (CPC). Most Medical Institutes have expressed inability to meet 30% of the additional financial impact. Therefore, the Ministry has submitted 13 proposals so far to Ministry of Finance for relaxation in the condition to bear 30% of additional financial impact.

Loksabha Q&A

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7th Central Pay Commission: Resolving Anomalies in Disability Pension

7th Central Pay Commission: Resolving Anomalies in Disability Pension

7thCentralPayCommission-disability-pension

The concerns raised by the Armed Forces with regard to disability pension in the 7th Pay Commission are being addressed. The 7th Central Pay Commission (CPC) recommended the following on disability pension:-

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

Ranks

Levels

Rate per month (INR)

Service Officers

10  and  above

27000

Honorary Commissioned Officers
Subedar Majors / Equivalents

6  to  9

17000

Subedar / Equivalents
Naib Subedar / Equivalents
Havildar / Equivalents

5   and  below

12000

Naik / Equivalents
Sepoy / Equivalents

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

The 6th CPC dispensation of the calculation of disability element on percentage basis, however, continues for civil side which has resulted in an anomalous situation.  The issue has accordingly been referred to the Anomaly Committee.  The disability element which was being paid as on 31.12.2015 will, however continue to be paid till decision on the recommendations of Anomaly Committee is taken by the Government.

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

PIB

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7th CPC Conclusive meeting of the Committee on Allowances

7th CPC Allowance Committee Report – Next Cabinet approval sought
Conclusive meeting of the Committee on Allowances held on 6th April, 2017

Shiva Gopal Mishra
Secretary

Ph: 23382286
National Council (Staff Side)
Joint Consultative Machinery for Central government Employees
13-C, Ferozshah Road, New Delhi – 110001
E Mail : nc.jcm.np@ gmail .com

No.NC-JCM-2016(Allowances)

Dated: April 7, 2017

All Constituents of NC/JCM(Staff Side),

Dear Comrades!
Sub: Conclusive meeting of the Committee on Allowances

As you are aware, conclusive meeting of the Committee on Allowances was held yesterday, i.e. on 6th April, 2017. We hope that, report of the said committee will be submitted to the Cabinet within a week’s time.

Comradely yours,
sd/-
(Shiva Gopal Mishra)

Source: http://ncjcmstaffside.com/

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Is RBI’s Monetary Policy is concerned with 7th CPC House Rent Allowances hike?

Is RBI’s Monetary Policy is concerned with 7th CPC House Rent Allowances hike?

Central Government Employees are eagerly waiting for hike in allowances as per 7th Pay Commission. The 7th Pay Commission recommended the rates at which HRA is to be paid to 24 per cent, 16 per cent and 8 per cent respectively for Class X, Y and Z cities and towns respectively of new Basic pay (pay in the pay band plus grade pay multiplying by the fitment factor of 2.57). The existing rates of HRA for these cities and towns were 30 per cent, 20 per cent and 10 per cent of Basic pay (pay in the pay band plus grade pay) respectively.

Yesterday RBI has issued its First Bi-monthly Monetary Policy Statement for 2017-18. Paramnews has analyzed this report in view of early approval of allowances committee. This report has stated that the Seventh Pay Commission recommendations will not upset fiscal maths as additional expenditures will be offset by either surplus revenues or expenditure cuts. Accordingly, a view has been expressed, this time too RBI seems neutral on prohibiting to hike the allowances specially House Rent Allowances.

HERE ARE TWO QUESTIONS TO BE POINTED OUT

  • Can we Say RBI plays the vital role in implementing 7th CPC House Rent Allowances?
  • Whether Govt. had taken RBI’s report to delay the hike in HRA as per 7th CPC Recommendation?

To Find the above we should have a recap on RBI Monetary Policy Report From April 2016 to First Bi-monthly Monetary Policy Statement for 2017-18.

As per RBI Projected Monetary Policy Report April 2016:-

The implementation of the CPC’s recommendations could impact inflation and growth through:

a) the direct impact of the proposed increase in the house rent allowance (HRA);
b) indirect effects operating through consumption to aggregate demand; and
c) inflation expectations channel

According to RBI The higher HRA would have a direct and immediate impact on headline CPI through an increase in housing inflation. As RBI assumed a rate of increase in the HRA as proposed by the 7th CPC is implemented from early 2017-18 onwards and the State Governments implement a similar order of increase with a lag of one quarter, CPI inflation could be 100-150 bps higher than the baseline for 2017-18. We can better understand in the below given chart by RBI.

impact-of-risk-scenarios-rbi

The implementation of the 7th Central Pay Commission (CPC) awards can have a significant bearing on the inflation trajectory through both direct and indirect channels shown by RBI in below given chart.

impact-of-7th-cpc-hra-by-rbiimpact-of-7th-cpc-hra-by-rbi-ststewise

RBI also assumed that the impact of the pay awards is likely to be seen over a period of two years. Compared to the 6th CPC awards, increase in the housing index would be more quick and continuous and indirect effects are likely to be smaller. Moreover, outgo of arrears under 7th CPC awards would be substantially lower but HRA rates would automatically increase when the dearness allowance of the employees crosses threshold levels3.

In the broad sense, as we see the above points projected by the RBI, we can easily say that due to the reason that the Govt has stopped giving 7th CPC House Rent Allowances and constituted the Committee on Allowances under Finance Secretary Ashok Lavasa in June last year after the government implemented the recommendation of the 7th Pay Commission.

The special committee on allowances recommended by the 7th Pay Commission is expected to recommend more than double House Rent Allowance (HRA). The committee on allowances recommended by the 7th Pay Commission is likely to propose a increases ranging between 106 per cent and 122 per cent in HRA for all categories of employees. The government was also expected to start giving HRA by October 2016, including all allowances, once again a report from the RBI ?

RBI governor Urjit Patel announced in the last bimonthly monetary policy on December 7, it seems that higher allowances, if at all, will not come before March 2017 i.e. the next financial year. As the RBI Governor said that disbursement of salaries and arrears under 7th Pay Commission award has not been disruptive to inflation outcomes, he added that the extension of two months given to the Ministry of Finance to receive the notification on higher allowances under the Pay Commission’s award, could push it’s fuller effect into the next financial year, rather than this financial year.

As many as 14 meeting have been held between the Committee on Allowances and the central government employees’ unions so far on higher allowances under the 7th Pay Commission, but no consensus could be reached.

Various Media Reports are claiming that the report will be approved by cabinet after the ongoing Budget session of Parliament is over on April 12.

The finance secretary-led panel, which is giving final touches to the reworked allowances based on the 7th pay panel’s recommendations, will hold its final meeting shortly, according to various sources.

The panel met for over three hours on Wednesday to deliberate on the subject. “Decisions are broadly taken on allowances pending a final review. But these will be announced only after current Budget session ends on April 12 to avoid any controversy,” another source said.

But the questions remain here:-

  • What “Decisions” will be broadly taken on House Rent Allowances?
  • When “These” will be announced ?
  • Whether the Govt. is waiting for “RBI” nod for good time? If yes, then when does the good time appear ? or
  • Is it pending due to “MCD Election” ? After 05 may 2017.
  • Is Govt waiting for Budget session of Parliament is over ? After April 12 2017.
  • Is Govt waiting for RBI Second Bi-monthly Monetary Policy Statement for 2017-18 ? After June 07, 2017.

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AIRF: Meeting of the Committee on Allowances will be held on 06.04.2017

AIRF: Meeting of the Committee on Allowances will be held on 06.04.2017

No.AIRF/Committee on Allowance

Dated: April 3, 2017

The General Secretaries,
All Affiliated Unions,
Dear Comrades!

Sub: Meeting of the Committee on Allowances

It has been informed by the Secretary, Staff Side(JCM), Com. S.G.Mishra, that, meeting of the Committee on Allowances will be held on 06.04.2017.
Probably this may the conclusive meeting.

As all of you are aware that, after 28th March, 2018, lots of efforts have been made by the Secretary, Staff Side(JCM), to pursue the Government of India regarding resolution of long pending demands of the CGEs with the Cabinet Secretary, Hon’ble MR and various Secretaries of the Government of India, Members of various committees.

For General Secy/AIRF

Source: AIRF

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Setting up of Departmental Anomaly Committee to settle the anomalies arising out of the implementation of 7th Pay Commission’s recommendations

7thCPC-Departmental-Anomaly

Departmental Anomaly Committee : Incorporate additional definition of anomaly

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAYS BOARD)

No. PC-VII/2016/DAC/I

New Delhi, dated 29.03.2017

The General Secretary,
All India Railwaymen’s Federation
4, State Entry Road,
New Delhi – 110055.

The General Secretary
National Federation of
Indian Railwaymen,
3 Chemsford Road
New Delhi – 110055

Dear Sirs,
Sub : Setting up of Departmental Anomaly Committee to settle the anomalies arising out of the implementation of 7th Pay Commission’s recommendations.

The undersigned is directed to refer Board’s letter of even number dated 05.10.2016 and to incorporate the following modification in the definition of anomaly:

“Where the Official Side and the Staff Side are of the opinion that the vertical and horizontal relativities have been disturbed as a result of the 7th Central Pay Commission to give rise to anomalous situation.”

2.With the incorporation of the above para, the definition of anomaly will read as follows:

(1) Definition of Anomaly

Anomaly will include the following cases:

(a) Where the official Side and Staff Side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the Commission assigning any reason;

(b) Where the maximum of the Level in the Pay Matrix corresponding to the applicable Grade Fay in the Pay Band under pre-revised structure, as notified vide RS(RP) Rules, 2016, is less than the amount an employee is entitled to be fixed at, as per the formula for fixation of pay contained in the Said Rules;

(c) Where the Official Side and the Staff Side are of the opinion that the vertical and horizontal relativities have been disturbed as a result of the 7th Central Pay Commission to give rise to anomalous situation.

3. The rest of the content of the letter dated 05.10.2016 shall remain unchanged.

Yours faithfully,
For Secretary, Railway Board

Railway Order Copy

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7th Central Pay Commission retains rate of annual increment at 3%

7th Central Pay Commission retains rate of annual increment at 3%

7thpaycommission-breaking-news

The 7th Central Pay Commission has retained the rate of annual increment at 3 per cent. The 7th CPC has also recommended 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.

The 7th Central Pay Commission has retained the rate of annual increment at 3 per cent. The 7th CPC has also recommended 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. These recommendations have been accepted by the government.

The 7th CPC has observed that it is essential to have a linkage between Departmental Results Framework Documents (RFD) and Annual Appraisal Performance Report (APAR), and has suggested the following modifications in the existing APAR system for determining Performance Related Pay:

(i) Alignment of Objectives: The Ministry’s Vision/Mission needs to be translated into a set of strategic objectives for each department and these objectives need to be cascaded by the Department Head to his subordinates and subsequently down the chain.
(ii) Prioritizing Objectives, Assigning Success Indicators and their Weights: Objectives reflected in the APAR should be prioritized and assigned weights along with success indictors or Key Performance Indicators. The Commission recommended 60 percent weight on work output and 40 percent weight on personal attributes, instead of the existing 60 percent weight on personal attributes and only 40 percent weight to work output.

(iii) No Ex-ante Agreement: The indicators in the APAR of an officer/staff will need to be discussed and set with the supervisor at the beginning of the year.

(iv) Timelines: The timelines for RFD may be synchronized with the preparation of the APAR so that the targets set under RFD get reflected in individual APARs in a seamless manner.

(v) Online APAR System: The Commission recommended introduction of online APARs system for all Central Government officers/employees.

This was stated by Arjun Ram Meghwal, Minister of State in the Ministry of Finance, in a written reply to a question in Lok Sabha today.

Source: financialexpress

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AIRF: 7th CPC Allowance Committee Meeting held on 28.3.2017 remained inconclusive

7th CPC Allowance Committee Meeting held on 28.3.2017 – AIRF

AIRF

 “Meeting of Committee on Allowances took place on 28th March, 2017, discussion on Allowances remained inconclusive. Issue of House Rent Allowance didn’t come up during meeting.”

No.AIRF/24(C)

Dated: March 28, 2017

The General Secretaries,
All Affiliated Unions,
Dear Comrades!

Sub: Meeting of Committee on Allowances held today remained inconclusive

Meeting of Committee on Allowances took place on 28th March, 2017, discussion on Allowances remained inconclusive. Issue of House Rent Allowance didn’t come up during meeting.

I met Cabinet Secretary/GOI & urged him for early resolution of pending demands of Railwaymen that includes NPS, early disbursal of Allowances of 7th Pay Commission, Increase in Minimum wages and fitment formula. Issue of MACP was also discussed and removal of the provision of benchmark ‘Very Good’ for MACP, which has been recommended from ‘Good’ to ‘Very Good’ by the 7th Pay Commission, has also been demanded. Though Cabinet Secretary has given positive assurance on our demands yet we need our rank and file to be prepared for persistent struggle.

With Good Wishes!

Yours faithfully,
sd/-
(Shiva Gopal Mishra)
General Secretary

Source: AIRF

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7th CPC Submission of Allowance Committee Report

Submission of Allowance Committee Report

Latest news on submission of 7th CPC Allowance Committee Report

“Today in Parliament, Minister of State for Finance Shri Santhosh Kumar Gangwar said in a written reply to a question regarding the submission of Allowance Committee Report. He said that the Allowance Committee is now in the process of finalizing its Report. Decisions on implementing the Report will be taken after the Report is submitted by the Committee.”

Detailed Questions and Answers:

QUESTIONS:
(a) Whether Government has formed a Committee for taking decision about the allowances to the Central Government employees and removal of anomalies in their pay scales announced by the Seventh Pay Commission;

(b) if so, whether the Committee has submitted its report;

(c) if so, the main features thereof and if not, the reasons for delay in submission of report; and

(d) the time by which recommendations of Seventh Pay Commission regarding the allowances are proposed to be implemented?

ANSWERS:
(a) to (d): The Committee on allowances has been constituted vide order dated 22.07.2016 to examine and make recommendations as to whether any changes in the recommendations of the 7th CPC relating to allowances are warranted and if so, in what form. A separate anomaly committee at National Level has also been set up, vide O.M. dated 09.09.2016, to settle the anomalies arising out of the implementation of the 7th CPC recommendations.

The National Anomaly Committee has made recommendations on the calculation methodology of the Disability Pension for Defence forces personnel. The Committee on allowances has received a large number of demands on allowances and even now receiving such demands. All the demands have been diligently examined. The Committee has already held 13 meeting so far and interacted with the representatives of Central Nodal Ministries, National Council (Staff Side), Joint Consultative Machinery (JCM) and officers and representatives of employee associations of Ministry of Health and Family Welfare, Home Affairs, Railways, Defence and Department of Posts. The Committee is now in the process of finalizing its Report. Decisions on implementing the Report will be taken after the Report is submitted by the Committee.

Authority: Rajya Sabha

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