Posts Tagged ‘7th Pay Commission’

Why 7th Pay Commission’s ‘miserly’ hike is understandable

Why 7th Pay Commission’s ‘miserly’ hike is understandable

The central government is well aware of the fiscal trap pay hike largesse portends.

The 33 lakh-strong central government employees are peeved with what they perceive to be a niggardly increase granted by the 7th Pay Commission vis-à-vis the earlier pay commissions and accepted with alacrity by the central government.

The government though has averred that it is “not appropriate” to compare the increase in minimum pay suggested by the 7th Central Pay Commission with that of the previous commissions. According to the 7th Pay Commission, the real increase given in 1996 and 2006 in minimum pay was 31 per cent and 51 per cent.

As compared to that, the commission recommended an increase of 14.29 per cent. In concrete terms, the minimum salary has been hiked from Rs 7,000 per month to Rs 18,000 per month. The central government employees want it to be fixed at Rs 26,000 per month (Source: India.com).

The central government is well aware of the fiscal trap pay hike largesse portends, given the real and grim possibility of state government employees making a clamour for parity with central government salaries.

A Hindu report, however, takes a more charitable view of things when it says that data compiled from multiple sources, including a 2008 official survey, Right to Information applications, media reports and the 2011 Census shows that India has 1,622.8 government servants for every 1,00,000 residents. In stark contrast, the US has 7,681. The central government, with 3.1 million employees, thus has 257 serving every 1,00,000 population, against the US federal government’s 840.

But then comparisons are proverbially odious. The US outdoes India in most government norms including judge-to-population ratio. While it is desirable to emulate the US, practical considerations including the size of the Indian population and the absolute number of employees make it veer towards caution.

Any egregious hike by the central government would have a precipitous impact not only on its finances but also on states, many of which are BJP ruled.

The central government is only following the template it laid down for itself when it boldly addressed the festering problem of the armed forces. While agreeing to one-rank-one-pension (OROP) norm in principle, it stood its ground and remained firm on ensuring this parity only every five years as against the unreasonable demand of every year.

At Rs 93,231 (Economic Survey report) for 2015-16, India’s per capita income for a month translates into an abysmal Rs 7,769 as opposed to what the central government employees have been offered – Rs 18,000. Mind you, the national average hides an inherent skew – the unorganised sector workers intuitively must be getting only half of the national average.

The point is the central government cannot be gung-ho about pay increases for employees coming under its jurisdiction given its ripple effect, in so far as similar demands from state government employees as well as the justified heart-burn it would cause among other employees especially in the unorganised sector.

Time was when public sector bank (PSB) employees got considerably more than central government employees. But successive pay commissions appointed by the central government have upset the PSB employees’ applecart. The sad truth is the central government pays out of the seemingly bottomless coffers of the consolidated fund of India whereas banks have to pay from their revenue and are answerable to their shareholders.

In any case, when the base is already large, further increases necessarily will have to taper down and be incremental. The 2006 increase of 51 per cent was indeed egregious. An encore of it in 2016 was just not possible.

As an aside, it must be pointed out that the central government job is no longer a cushy one, what with a demanding Prime Minister snapping at their heels. They are for the first time feeling the heat of the private sector motto – work hard, party hard.

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Be the first to comment - What do you think?  Posted by admin - March 24, 2017 at 10:28 am

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7th Pay Commission: CPSEs to spend Rs 20,000 crore on salary hikes

7th Pay Commission: CPSEs to spend Rs 20,000 crore on salary hikes

After getting pay hikes last year on implementation of the 7th Pay Commission, the central public sector enterprises (CPSEs) are likely to spend additional Rs 20,000 crore in the next fiscal year (FY17-18) as recompense to 12 lakh employees.

As per 7th Pay Commission, in the first installment, four lakh CPSE executives will likely to receive salary revision in July with effect from January 1, 2017. The expected cost for the same will be Rs 8,000 crore per year, as reported by The Financial Express.

Additionally, the pay hikes are likely to be followed by a wage revision for over 8 lakh workers which will cost CPSEs nearly Rs 12,000 crore, the report said quoting a source.

As per the report, this salary revision is based on the recommendations of the 3rd Pay Revision Commission (PRC), which constitutes the department of public enterprises, and the exercise will be carried out by each CPSE separately after negotiating with the employee unions.

Last year in June, as per The Economic Times report, the government had appointed a committee to review and revise the structure of salary at CPSEs.

That time, the government had released a notification, which said, The step was taken on recognising that in the prevailing business environment the CPSEs have to be commercially viable and competitive, and that the employees of the CPSEs have to be provided with suitable working conditions, emoluments and incentives to motivate them to strive for further growth, productivity and profitability of their enterprises.
Source: Zee News

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7th Pay Commission: Higher allowances to be proposed in this month

7th Pay Commission: Higher allowances to be proposed in this month

New Delhi: The Committee on Allowances will propose to increase allowances of central government employees, besides dearness allowance (DA) in this month.

DA is being paid to them with their pay packages.

The Committee on Allowances, under Finance Secretary Ashok Lavasa, was formed in July 2016 following protests by government employees over recommendations of the 7th Pay Commission on allowances.

The 7th Pay Commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.

Later, the Finance Minister extended the deadline for report submission to February 22, 2017.

The Committee on Allowances is yet to submit its report, the Minister of State for Finance Arjun Ram Meghwal said in Lok Sabha on March 10.

However, he said that the deliberations of the committee are in the final stages.

Besides the basic salary, a large portion of a central government employee’s salary is the house rent allowance (HRA); some changes are to be made in this category of the recommendations of the 7th Pay Commission on allowances,

“The Committee on Allowances has decided against reducing the house rent allowance (HRA). The 7th Pay Commission suggested bringing down the HRA to 24 per cent, 16 per cent and 8 per cent respectively depending on type of cities,” the Finance Ministry’s officials said.

The officials also said that the Committee on Allowances would suggest, the HRA is to be kept as it was under the Sixth Pay Commission at 30 per cent, 20 per cent, and 10 per cent respectively.

The Committee on Allowances is likely to remain constant the Transport Allowance for central government employees as 6th Pay Commission recommendations including Dearness Allowance(DA), the sources added.

So, the employees now get all allowances except dearness allowance, according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

The higher allowances most probably to implement from the month of April and the cabinet may give its nod in this month, the sources confirmed.

TST

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7th Pay Commission : From Higher Allowance to Implementation where does the story Stands

7th Pay Commission : From Higher Allowance to Implementation where does the story Stands

7th Pay Commission : On Friday senior officials of Union Cabinet were expected to meet members of the panel over Higher Allowance and National Pension Scheme (NPS).

However sources indicate that the meeting did not take place.

As almost a year has passed, we try to figure out where does the story of 7th Pay Commission stand today. The panel was constituted a day after the implementation of the 7th Pay Commission recommendations.

This panel on the higher allowance, named ‘Committee on Allowance’ was also expected to make a major announcement on Friday following the submission of the report to the government. However that too didn’t happen.

As we all know, Prime Minister gave the nod for an additional 2 per cent increase in Dearness Allowance(DA) for all Central Government employees. Moreover, along with the DA, for pensioners, the Dearness Relief (DR) has been increased by 2 per cent with effect from January 1, 2017.

While reports claim that the increasing of the Dearness Allowance has benefited 48.85 lakh employees and 55.51 lakh pensioners, the central Government employees are now concerned about the Committee on Allowance’s decision.

But more importantly, although the DA has been hiked, the Committee headed by Finance Secretary Ashok Lavasa is yet to submit the reports on other allowances, which were also scheduled to be increased once the 7th Pay Commission was implemented.

However, the National Joint Council of Action (NJCA) on behalf of the Central Government employees expressed their dissatisfaction over the hiked 2% DA and said it should have been increased by at least 3%.

April 1, 2017, was the rumoured date for implementing the allowance hike but now that the report has not yet been submitted, it seems the rumour is to stay as it is.

Following this, the NJCA has warned of dire consequences if the Centre fails to implement the allowance hike from April 1.

Source: India.com

Be the first to comment - What do you think?  Posted by admin - March 18, 2017 at 4:56 pm

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7th Pay Commission: Committee on Allowances yet to submit report: Minister of State for Finance

7th Pay Commission: Committee on Allowances yet to submit report: Minister of State for Finance

New Delhi: The Committee on Allowances, tasked with reviewing the recommendations of the 7th Pay Commission on allowances, was given four months to submit its report. Later, the deadline was extended to February 22, 2017, has not yet submitted its report to the government.

In a written reply to a question on 7th Pay Commission in Lok Sabha on March 10, Minister of State for Finance Arjun Ram Meghwal said the Committee, under Finance Secretary Ashok Lavasa, is yet to submit its report.

The minister said that the deliberations of the committee are in the final stages.

The Committee on Allowances was formed in July 2016 following protests by government employees over recommendations of the 7th Pay Commission on allowances.

The 7th Pay Commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

In July, the Finance Minister Arun Jaitley constituted a committee under Finance Secretary Ashok Lavasa to review the recommendations. The committee was given four months’ time to submit the report to Finance Minister.

In October, Ashok Lavasa was quoted by some agencies as saying that he was ready with the report.

Later, the Finance Minister extended the deadline for report submission to February 22, 2017. Now, going by Minister of State for Finance’s reply, it seems government employees will have to wait longer before they can hear some news on hike in allowances.

According to some reports, the Committee on Allowances has decided that the current HRA slab, which is 30 per cent of basic pay, for metros would continue against reducing the House Rent Allowance (HRA) for central government employees. The 7th Pay Commission suggested bringing down the HRA to 24 per cent, 16 per cent and 8 per cent respectively depending on type of cities.

The transport allowance is likely to remain constant as certain reports said the Committee on Allowances agreed with 7th Pay Commission’s recommendation, which had already factored in the Dearness Allowance at 125 per cent assuming the date of implementation to be January 1 next year.

TST

Be the first to comment - What do you think?  Posted by admin - March 15, 2017 at 5:18 pm

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7th Pay Commission: Central employees wait for higher allowances more than for Holi

7th Pay Commission: Central govt employees wait for higher allowances more than for Holi

New Delhi: Just one day remains to Holi and more than 48 lakh serving central government employees and 52 lakh pensioners have not received higher allowances under the 7th Pay Commission recommendations from August last year due to Union cabinet hasn’t still approved the higher allowances.

The central government employees received higher basic pay in August 2016 with arrears, effective from January 1, 2016 on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance has yet to materialize.

The sources in the Finance Ministry told us on condition of anonymity, “in June last year, the cabinet approved the 7th Pay Commission recommendations but the allowances 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.

“The Cabinet is likely to approve the higher allowances in the next week as the Assembly election results in five states were declared yesterday and the model code of conduct enforced ahead of the elections ceased to be in operation with immediate effect.

The employees can’t receive the higher allowances without the Cabinet approval. In contrast, the higher allowances might not impact employees much but since Holi is round the corner, they will feel the pinch.”

The Finance Minister Arun Jaitley, however, has managed to disburse the higher allowances to its employees including pensioners. “FM Jaitley is making all possible efforts to pay them the higher allowances with April salaries”, said the sources.

However, the employees now get allowances according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

TST

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Implementation of 7th Pay Commission Report

Implementation of Seventh Pay Commission Report

The following steps have been taken to implement the recommendations of 7th Pay Commission Report in respect of Armed Forces personnel:

(i) Issue of Resolution dated 25th July 2016 by Ministry of Finance.

(ii) Issue of Resolution dated 5th September 2016 by Ministry of Defence.

(iii) Issue of orders dated 10th October, 2016 by Ministry of Defence for payment of ad-hoc arrears equal to 10% Basic Pay and Dearness Allowance.

The order for revision of pension to ex-servicemen pursuant to the recommendations of 7th Pay Commission Report was issued on 29th October, 2016. As per information available in respect of pre-2016 pensioners, 24 public sector banks have revised pension of 18,99,697 pensioners and have paid Rs.5883.27 crore (approx) on account of arrears of pension / family pension.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Arvind Sawant in Lok Sabha today.

PIB

Be the first to comment - What do you think?  Posted by admin - March 10, 2017 at 3:33 pm

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7th Pay Commission: As Budget session starts tomorrow, all eyes on Arun Jaitley to announce hike in allowances

7th Pay Commission: As Budget session starts tomorrow, all eyes on Arun Jaitley to announce hike in allowances

The Committee on Allowances has already submitted its report to the Finance Ministry in which it has reviewed the recommendations of the Seventh Pay Commission on allowances.

With the second part of the Budget session in Parliament starting on Thursday, all eyes are on Finance Minister Arun Jaitley who may just announce a hike in allowances for Central government employees.

The Committee on Allowances has already submitted its report to the Finance Ministry in which it has reviewed the recommendations of the Seventh Pay Commission on allowances.

The Committee under Finance Secretary Ashok Lavasa is believed to have suggested that the house rent allowance be kept as it is and not brought down as recommended by the Seventh Pay Commission.
The pay hike under the Seventh Pay Commission has been the lowest in the last 70 years and a decrease in allowances is unlikely to go down well with nearly 50 lakh government employees.

THE DEVELOPMENTS IN THE SEVENTH PAY COMMISSION STORY:

  • With Uttar Pradesh and Manipur voting in the final phase today, the model code of conduct will be lifted by the end of the day. The Narendra Modi government, which could not make any major announcements during the poll season, is expected to speak on the allowances soon.
  • The second part of the Budget session will continue for a month till April 12, and it is widely believed that Arun Jaitley can make an announcement during the session, and employees may start getting revised allowances from the new fiscal in April.
  • On allowances, this pay commission has not had the best news for government employees with the panel recommending axing 53 of the 196 allowances and merging a few others.
  • Following protests by employees, the government formed a committee under Ashok Lavasa to look into the recommendations. The pay commission had suggested bringing down the house rent allowance (HRA) to 24 per cent from 30 per cent of basic pay for metros.
  • While the Committee on Allowances decided against a slash in HRA, reports suggest that it has agreed with Seventh Pay Commission’s recommendation on no hike in transport allowance.
  • To add to the growing resentment among employees, the dearness allowance (DA) is likely to be hiked by just 2 per cent this year. “The dearness allowance as per the agreed formula by the Centre works out to be 2 per cent which would be effective from January 1, 2017,” Confederation of Central Government Employees President K K N Kutty said.
  • Representatives of employees unions are not happy with the hike and said it is not in sync with price rise and inflation. According to some reports, employees union are planning to protest against the “meagre” hike in DA.

Read at: Indiatoday

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7th Pay Commission: Central gov employees to get higher allowances from April 1, says FinMin

7th Pay Commission: Central employees to get higher allowances from April 1, says FinMin

New Delhi: Central government employees will get higher allowances according to the 7th Pay Commission recommendations from April 1, a senior finance ministry official said.

The employees will get their April salaries with higher allowances in accordance with the 7th Pay Commission recommendations, he told our reporter at the finance ministry on Monday.

Everything is decided. The Cabinet and the prime minister have to approve the Committee on Allowances report. The finance ministry has no reason to raise any question on the report of committee on allowances, he added.

He said the process to implement the higher allowances would be completed soon.

The central government approved the 7th Pay Commission scale for its employees in June, offering a highest basic pay of Rs 2.5 lakh and a minimum of Rs 18,000.

The new basic pay has been given in August 2016 with arrears, effective from January 1, 2016. The allowances, however, other than dearness allowance referred to the Committee on Allowances headed by the Finance Secretary Ashok Lavasa in July 2016, 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 employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

The Committee on Allowances was initially given a time of four months to submit its report to the Finance Minister Arun Jaitley.

In October last year, Ashok Lavasa was quoted by some media outlets as saying he was ready with the report.

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 another excuse for the government as it cannot announce allowances hike till the model code of conduct is in place up to March 8.

The finance ministry official said the Committee on Allowances report states the current House Rent allowance (HRA) slab, which is 30 per cent of basic pay, for metros for employees. An announcement on the same is expected soon but no hike in Transport Allowance (TPTA) for central government employees in its report and the Transport Allowance will remain the same as 6th Pay Commission recommendations.

However, the pay panel had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay for Class X (metros), Y and Z cities, respectively.

TST

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Expected DA: Cabinet to approve the Dearness Allowance hike soon

Expected DA: Cabinet to approve the Dearness Allowance hike soon

“The Central cabinet is likely to give its approval to a two percent Dearness Allowance hike, with effect from January 2017, to the Central Government employees.”

The cabinet is, at its next meeting, expected to give its approval to the additional Dearness Allowance of two percent to Central Government employees and pensioners, to come into effect from January 1, 2017 onwards.

The 2% Additional Dearness Allowance hike will be calculated on the basis of the basic pay as recommended by the Seventh Pay Commission, and will be given to more than 47 lakh Central Government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

The Dearness Allowance, issued once every six months, is given to Central Government employees and pensioners to help them manage the increase in prices of essential commodities. The Dearness Allowance is calculated on the basis of the Consumer Price Index Numbers for Industrial Workers on Base Year 2001=100.

The percentage for January 2017 was arrived at by recording the prices of essential commodities at 78 towns and cities across the country, for the months of July 2016 till December 2016. Based on the data and calculation, the percentage may be fixed at 4.95 percent. But, according to the method prescribed by the Pay Commission, the decimal numbers are ignored. Hence, a Dearness Allowance of four percent will be issued with effect from January 1, 2017 onwards.

The table is given below for more information to arrive the percentage calculation.

 

M/Y CPI(IW)BY 2001=100 Total 12 Months 12 Monthly Average % Increase Over 261.42 for DA
Jul -16 280 3245 270.42 3.44
Aug – 16 278 3259 271.58 3.88
Sep – 16 277 3270 272.50 4.23
Oct – 16 278 3279 273.25 4.53
Nov – 16 277 3286 273.83 4.75
Dec – 16 275 3292 274.33 4.95

Be the first to comment - What do you think?  Posted by admin - March 6, 2017 at 7:28 pm

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7th Pay Commission: Higher allowances woes plague central govt employees

7th Pay Commission: Higher allowances woes plague central govt employees

New Delhi: Central government employees have not got their higher allowances under the 7th Pay Commission recommendations over the last seven to eight months.

A central government employees union leader, said the government has not released the higher allowances for central government employees for last seven months.

He said the higher allowances issue has affected about 48 lakh serving central government employees and 52 lakh pensioners, who could not pay their house rents, tuition fees of children, installments of home and vehicle loans and insurance premiums.

We were promised in August, 2016 that the higher allowances (as per the 7th Pay Commission) would be given to us within four months, but we haven’t got its till now.

They (the government) tell us that the model code of conduct has come into effect from January 4 to March 8 for five states assemblies poll process, so they can’t announce the higher allowances. Actually they do not intend to pay the higher allowances in time. In October last year, the Finance Secretary Ashok Lavasa, who is the head of the Committee on Allowances, said, he was ready with the report to submit the Finance Minister Arun Jaitley but Jaitley didn’t receive the report of allowances, the union leader told.

The union leader said even though the 7th Pay Pay Commission was implemented in August, 2016, the central government employees have not yet been given the higher allowances till date.

Earlier, 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 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.

However, the Finance Minister Arun Jaitley, promised to address the issue of higher allowances after the completion of the polls of the five states.
TST

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DoPT Orders: Bunching of stages in the Revised pay structure in the grade of Assistant Section Officers

DoPT Orders: Bunching of stages in the Revised pay structure in the grade of Assistant Section Officers

F.No.7/1/2017-CS-1(A)(Pt.)
Government of India
Department of Personnel & Training

2nd Floor, Lok Nayak Bhawan
Khan Market, New Delhi-3
Dated 27.02.17

OFFICE MEMORANDUM

Subject: Bunching of stages in the Revised pay structure in the grade of Assistant Section Officers – Reg.

DoP&T has been receiving many references from various Ministries/ Departments seeking clarification on the issue of grant of bunching to Assistant Section Officers of Central Secretariat Service in terms of Department of Expenditure’s O.M. dated 07.09.16.

It has also been noticed that there have been divergent views on the matter that while some Ministries/ Departments have given the benefit on their own, some other Ministries/ Departments have sought clarifications on various issues they are facing while giving the benefit of bunching in terms of DoE’s O.M. dated 07.09.16.

3. The matter has been taken up for further clarifications with Establishment Division/ Department of Expenditure briefly on the following issues:

i. While the Seventh Pay Commission had not prescribed different modes of pay fixation for Direct Recruit (DR) and Promotee ASOs, there have been two different modes of pay fixation for DR and Promotees prior to implementation of Seventh pay Commission. Due to differential methods of pay fixation, required differential of 3% is not calculable based on seniority alone as the other relevant facts of being DR/ Promotee comes into play here.

ii) The manner of different pay fixation for DR ASO and promotee Assistants has been challenged in various court cases (viz. OA No.2147/2015, OA No. 150/2016, OA No. 1015/2013 and OA No.476/2015 etc.)

4. It has already been decided to consult Department of Expenditure through Establishment (Pay) in the matter and same is under examination. Therefore, to ensure uniform implementation of Department of Expenditure’s instruction, all the Ministries/ Departments are advised to wait for further instructions with regard to grant of bunching benefits to ASOs of CSS and also if orders have already been issued by any Ministry/Department, the same may not be given effect till further instructions.

5. This issues with the approval of competent authority.

sd/-
(K.Srimvasan)
Under Secretary to the Government of India

Click to view the order

Authority: http://dopt.gov.in/

Be the first to comment - What do you think?  Posted by admin - February 28, 2017 at 10:03 pm

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7th Pay Commission: Transport Allowance not to be hiked

7th Pay Commission: Transport Allowance not to be hiked

New Delhi: The Transport Allowance for central government employees will not be hiked and remain the same as 6th Pay Commission recommendations including Dearness Allowance(DA).
The Finance Ministry today informed about the report of the ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa and said no hike in Transport Allowance (TPTA) for central government employees in its report. The committee accepted the 7th Pay Commission recommendation in this regard, which was announced earlier.

The Pay Commission has revised the Transport allowance (TPTA), which is given below:

NEW-TPTA

The existing Transport allowance table for A1/A cities and other places is under:

Existing-TPTA

The Pay Commission made report, assuming that the rate of Dearness Allowance 125 percent at the time of implementation of the pay commission recommendation, i.e. on January 1 next year.
Accordingly, the employees will not get any hike in Transport allowance on the time of implementation of the pay commission recommendation as the existing Transport allowance figure automatically reached the Pay Commission revised Transport allowance figure after adding 125 percent DA.

“In partial modification, the committee has further decided that the current HRA slab, which is 30 per cent of basic pay, for metros would continue,” according to the sources.

However, the pay commission had recommended reducing the house rent allowance (HRA) to 24 per cent of basic pay as against the 30 per cent of basic pay employees were drawing under the Sixth Pay Commission.

The government has given higher basic pay with arrears, effective from January 1, 2016 in August 2016 to its employees on the recommendations of the 7th pay commission but referred hike in allowances to the Committee on Allowances.

Usually, once the recommendations of the pay commission are approved, the increase in basic pay is followed by an increase in allowances.

The hike in allowances, most probably to implement from the month of April and the Finance Minister Arun Jaitley may announce it after ending the model code of conduct on March 8.

TST

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7th Pay Commission: Higher allowances announcement soon

7th Pay Commission: Higher allowances announcement soon

New Delhi: Central government employees are waiting almost seven months to receive higher allowances under the 7th Pay Commission recommendations in their paychecks. Senior Finance Ministry sources say the government is expected to make the announcement of higher allowances after five states assembly polls.

The central government employees received higher basic pay in August 2016 with arrears, effective from January 1, 2016 on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance has yet to materialize.

The 7th Pay Commission recommendations have wrapped up, in June last year, but the central government employees still waiting for payments owed them i.e higher allowances.

The delays are because the 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.

The Committee on Allowances was initially given a time of four months to submit its report to the Finance Minister Arun Jaitley.

In October last year, Ashok Lavasa was quoted by some media outlets as saying he was ready with the report.

However, the committee was later given an extension till February 22, 2017 to submit its report on the pretext of demonetisation and the government said that the cash crunch was the reason behind the delay in announcing higher allowances.

According to some reports, the government is likely to give its nod to the revised allowances once the Assembly elections in five states are over. The revised allowances are expected to be effective from April 1, which marks the beginning of the new financial year.

The sources said the Committee on Allowances report states the current HRA slab, which is 30 per cent of basic pay, for metros. An announcement on the same is expected soon.

However, the pay commission had recommended reducing the house rent allowance (HRA) to 24 per cent of basic pay as against the 30 per cent of basic pay employees were drawing under the Sixth Pay Commission.

TST

Be the first to comment - What do you think?  Posted by admin - February 27, 2017 at 11:58 am

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UGC: Pay panel hike for 20%

UGC: Pay panel hike for 20%

New Delhi/ Hyderabad: The University Grants Commission (UGC) at a meeting held on February 22 reportedly cleared the recommendations of the 5-member committee that looked into the pay revision for university and college teachers across the country. The report is now with the Ministry of Human Resources Development for its approval. The ministry is yet to look into the report as the elections to several state assemblies are being held.

Sources from the UGC told The Hans India that the committee has reportedly recommended a 20 per cent hike in the basic pay of university and college teachers. As the existing Dearness Allowance will be merged in the basic pay, the hike is likely to be around 25 per cent to 30 per cent, including the HRA depending on the cadre and the seniority.

Monthly salary for university/college teachers (in Rs)
Post Current starting pay Proposed pay
Professor 1,23,000 1,44,000
Associate professor 1,07,000 1,26,000
Assistant professor 50,000 59,000
*Figures include basic salary, academic grade pay and DA 

The pay commission has reportedly recommended a performance linked promotion system with an emphasis on research. There is no change in the retirement age. The present UGC panel has also recommended the retirement age of university and college teachers to be 65 years. But, several state governments have not implemented even the earlier panel’s recommendation to this effect. The state governments took advantage of the fact that higher education is in the concurrent list.

The proposed hike will be applicable to around 30, 000 teachers in Central universities and over four lakh in State varsities and colleges across the country .The last pay revision took place in 2006. The panel has reportedly suggested implementation of new pay scales with retrospective effect from January 2016 as the Central pay revision takes place every ten years while the State government pay scales are revised every five years.

Similar to the Seventh Pay Commission recommendations for the Central government employees, the UGC panel has recommended that a teacher’s starting package to be revised by a multiplier of 2.72, applied to the basic salary and academic grade pay (AGP). The Seventh Pay Commission, whose report was accepted last year for civil servants and other central staff, had used the 2.72 multiplier.

The 5-member UGC panel was headed by Prof V S Chauhan.Speaking to The Hans India from Patna, Prof Arun Kumar, general secretary of All India Federation of University and College Teachers’ Organisations (AIFUCTO), urged the UGC to make the report public immediately. The teachers of the universities and colleges across India are aghast that they have been deliberately kept in the dark about such a sensitive and important issue, the AIFUCTO leader said in a recent press release.

The UGC panel reportedly urged the Central government to meet the 100 per cent additional financial requirement for the implementation of new UGC scales for university and college teachers. However, though the last pay commission in 2006 made a similar recommendation, the Central government has given only 80 per cent and asked the State governments concerned to bear the remaining 20 per cent of additional financial requirements for implementing the new scales for teachers in State universities and colleges.

Speaking to The Hans India, Prof Battu Satyanarayana, chairman, Telangana Federation of University Teachers Associations, urged the UGC to release special grants to State universities to implement the revised UGC scales.

Be the first to comment - What do you think?  Posted by admin - February 25, 2017 at 10:57 am

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Revised Subscription Rates of RELHS as per Pay Matrix of 7th CPC

Revised Subscription Rates of RELHS as per Pay Matrix of 7th CPC

The Railway Board has decided to revise the subscription raes of Railway Employees Liberalized Health Scheme (RELHS)as per the Pay Matrix Level recommended by the 7th Pay Commission.

Following the subscription calculation method of CGHS for Central Government Employees and Pensioners, the Railway Board has now decided and published the revised subscription rates for all the group of Railway employees through its official portal.

On 9th January, 2017 the Health Ministry published the new rates of monthly subscription for availing the CGHS facility. The Central Government Pensioners have an option to get their CGHS Pensioners Card by either making CGHS contribution on an annual basis (12 Months) or by making contribution for 10 years for life time validity.

The rate of contribution to join RELHS shall be last month’s basic pay drawn or the subscription rate indicated in the above table at different levels as per the 7th Pay Commission whichever is lower.

Pay Matrix Level Subscription Rate to Join RELHS (in Rs.)
Level 1 (Grade Pay 1800) 30,000
Level 2 (Grade Pay 1900) 30,000
Level 3 (Grade Pay 2000) 30,000
Level 4 (Grade Pay 2400) 30,000
Level 5 (Grade Pay 2800) 30,000
Level 6 (Grade Pay 4200) 54,000
Level 7 (Grade Pay 4600) 78,000
Level 8 (Grade Pay 4800) 78,000
Level 9 (Grade Pay 5400) 78,000
Level 10 (Grade Pay 5400) 78,000
Level 11 (Grade Pay 6600) 78,000
Level 12 and Above 1,20,000

The revised rate of subscription as above shall be applicable to those railway employees who shall be retiring and joining RELHS on or after the date of issue of this letter(23.2.2017). Those who have already retired and are not member of RELHS shall be governed by the rules which were prevalent at the time of their retirement

Be the first to comment - What do you think?  Posted by admin - February 24, 2017 at 10:46 pm

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Revision of Pay scales, Pension to the TN State Government employees and pensioners following the decisions of the Central Government on the recommendations of the Seventh Central Pay Commission

Revision of Pay scales, Pension to the TN State Government employees and pensioners following the decisions of the Central Government on the recommendations of the Seventh Central Pay Commission

FINANCE (PAY CELL) DEPARTMENT
G.O.Ms.No.40, Dated:22nd February,2017
(Masi-10, Thiruvalluvar Aandu 2048)

OFFICIAL COMMITTEE: Constitution of an Official Committee to examine the revision of Pay scales / Pension to the State Government employees and pensioners following the decisions of the Central Government on the recommendations of the Seventh Central Pay Commission – Ordered

ORDER:-

The Government has decided to constitute an Official Committee to examine and make necessary recommendations for the implementation of the revision of scales of pay and allowances of State Government Employees and Teachers based on the decisions of the Central Government on the recommendations of the Seventh Central Pay Commission. The Committee shall comprise the following members:-

1. Additional Chief Secretary, Finance Department
2. Principal Secretary, Home Department
3. Principal Secretary, School Education Department
4. Secretary, Personnel and Administrative Reforms Department
5. Dr.P.Umanath, I.A.S., Member-Secretary

2. (i) The Committee shall be chaired by seniormost Member.

(ii) The Committee shall examine the orders issued / to be issued by the Central Government on the recommendations of the Seventh Central Pay Commission scales of pay and make necessary recommendations regarding revision of the pay scales to the State Government Employees and Teachers including employees of Local Bodies.

(iii) While making recommendations on scales of pay, the Committee shall take into account the local conditions and the present relativities in the functions, qualifications and hierarchy.

(iv) The Committee shall also examine the decision of the Government of India on the revision of pension, family pension, retirement benefits etc., and also make necessary recommendations to the State Government pensioners.

(v) The Committee shall also make necessary recommendations regarding Other Allowances based on the recommendations of the High Level Committee constituted for this purpose by Government of India.

3. The Committee shall submit its report to Government within four months i.e. on or before 30-06-2017.

4. Orders regarding supporting staff to the Official Committee will be issued separately.

5. All the Departments of Secretariat and Heads of Departments are requested to render all necessary information to the Committee as and when sought for.

(BY ORDER OF THE GOVERNOR)

K.SHANMUGAM
ADDITIONAL CHIEF SECRETARY TO GOVERNMENT

Be the first to comment - What do you think?  Posted by admin - February 23, 2017 at 8:05 am

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7th Pay Commission: Increased salaries attracting young India to apply for Government Jobs

7th Pay Commission: Increased salaries attracting young India to apply for Government Jobs

Increased salary prospects due to 7th Pay Commission is attracting young talent in India towards the Government Jobs

Government Jobs in India have long attracted people from every walk of life. While the basic call of a government job in India was the stability associated with it, many had chosen to walk the path of the treacherous private sector. The biggest call of the private sector was indeed the higher pay packages and the chances of a life style of many aspired for. That, however, is changing. All thanks to the 7th Pay Commission recommendations. The increased starting packages have over the past year increased the interest of young Indians towards Government Jobs. For the first time in India, Government Jobs mean more than just a stable job. It means increased salaries with benefits, suggests reports.

Numbers are evident. Only last year when Indian Railways released the notification for recruitment in the Non Technical Popular Category, a mind boggling 92 lakh people applied for 18000 jobs. Such was the increased numbers that Railway Recruitment Board had to introduce another level in the recruitment process to bring it down to considerate numbers. Around 3 lakh candidates had then appeared in the second stage of which results are expected anytime. Similar is the case in case of Banking. While Banking has always attracted a steady, it is thanks to the increased salaries for Clerks and Probationary Officers that more and more candidates are applying for the exam.

The trend continues. State Bank of India Probationary Exam was announced recently for 2,313 posts. Given the trend of last year, SBI is expecting applications from around 20 lakh candidates. With a starting salary that could go as high as 12 lakhs, the interests for the jobs are bound to be phenomenal.

The applications are still on and close on March 6, 2017. It is not just at the level of graduates though. For Staff Selection Commission, the number of candidates applying for CHSL or the Combined Higher Secondary Level has also seen a two fold increase.
The numbers are promising, if any. It can be simply argued that India constantly needs good talent and energetic work force to manage its increasing institutional pressure. A stable and high paying job is sure to retain the best of the country towards developing the national assets and human capital. Engineers, doctors and professionals from all spheres are required in the various governmental departments. The changing face of the work force, the stricter guidelines and the stronger applications all hint towards a better and reformed public sector. The 7th pay commission has seemed to help and provide an impetus towards the building of the nation.

Source: India

Be the first to comment - What do you think?  Posted by admin - February 22, 2017 at 2:03 pm

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Seventh Pay Commission: Talks On Allowance Today, Report Likely Soon

Seventh Pay Commission: Talks On Allowance Today, Report Likely Soon

The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension but its suggestions relating to allowances were referred to the committee.

The panel headed by Finance Secretary Ashok Lavasa to review Seventh Pay Commission allowances is expected to soon submit its report to the government. Shiv Gopal Mishra, the convenor of National Joint Council of Action (NJCA), a joint body of unions representing central government employees, said talks in this matter are in the final leg. The employee union body will be meeting the panel members today on the issue of Housing Rent Allowance or HRA related to Seventh Pay Commission.

The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension but its suggestions relating to allowances were referred to the committee. The Seventh Pay Commission had examined a total of 196 existing allowances and, by way of rationalisation, recommended abolition of 51 allowances and subsuming of 37 allowances.

The committee on allowances was initially given a time of four months to submit its report to the finance minister. Till a final decision is taken, all existing allowances are being paid at the Sixth Pay Commission rates.
The Seventh Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new Basic Pay, depending on type of cities.

The Seventh Pay Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent respectively when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent.

Typically, in case of housing allowance, arrears are not paid.

Allowances form a significant chunk of government employees’ salary. Some analysts had earlier said that implementation of the housing allowance portion of the Seventh Pay Commission as well as GST or Goods and Services Tax could push up average inflation.

“At worst, if the government is under pressure, this allowance can be pushed to the next year, as was done in the previous pay commissions. The housing allowance does not attract arrears,” HSBC Securities had said in an earlier report.

The Cabinet had also decided to constitute two separate committees to suggest measures for streamlining the implementation of National Pension System (NPS) and to look into anomalies likely to arise out of implementation of the Commission’s Report.

Source: NDTV

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Anomalies arising out of the implementation of the seventh Central Pay Commission’s recommendations

Anomalies arising out of the implementation of the seventh Central Pay Commission’s recommendations

Centre expands ambit of panel examining 7th Pay Commission-related anomalies

New Delhi: The Centre has expanded the ambit of a panel looking into anomalies arising out of the implementation of the seventh Central Pay Commission’s recommendations.

The work of the anomaly committee, which has representatives from both official and staff sides, is to act on representations received from the employees against the pay panel’s recommendations.

The Department of Personnel and Training (DoPT) has modified the definition of anomaly to include “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 (CPC) to give rise to anomalous situation,” as per the Office Memorandun No.11/2/2016-JCA dated 20th February, 2017.

The inclusion of term “disturbance of vertical and horizontal relativities” (referred to as gaps in pay among various group of employees/officer working at the same level) will help in expanding the approach of the anomaly committee, a senior DoPT official said.

Now the anomaly will include cases where the official side and the staff side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the seventh CPC itself without the Commission assigning any reason.

“It will also include cases where the maximum of the level in the pay matrix corresponding to the applicable grade pay in the pay band under the pre-revised structure is less than the amount an employee is entitled to be fixed at,” the order said.

The DoPT had in August last year asked all central government departments to set up committees to look into various pay-related anomalies arising out of the pay panel’s recommendations.

The Centre has accepted most of the recommendations of the seventh CPC being implemented from January 1, 2016.

PTI

Be the first to comment - What do you think?  Posted by admin - February 21, 2017 at 7:51 pm

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