Decision on 7th CPC allowances : Deep sense of frustration among employees
Delaying 7th CPC allowances announcement will cause deep sense of frustration among Central Government employees.
“Reports indicate that the Government might take more time to announce its decisions regarding the Ashok Lavasa Committee’s report on allowances that were prescribed by the Seventh Pay Commission”
The Committee on Allowances was formed under the leadership of Ashok Lavasa in July 2016 to review the recommendations on allowances by the 7th CPC. The committee was initially given 4 months period to submit its report to Finance Ministry.
Later, citing the stagnation that resulted due to demonetization, the Finance Ministry extended the period for submitting the report to 22nd Feb 2017.
Replying to a question in the Parliament, Central Minister Arjun Ram Meghwal said, on March 10, that the Allowance Committee has not yet submitted its report and that the government will immediately announce its decisions on the report as soon as it is received. He added that the committee is in the last leg of preparing its reports and that it would be submitted to the government very soon.
Previously, it was said that the government will announce its decision as soon as the assembly elections in the five states concluded. Announcements were expected in Arun Jaitley’s budget speech in the Parliament. BJP’s win in the elections is now believed to be the reason behind a dramatic change in the situation.
As far as the Central Government employees are concerned, those living in the accommodations provided by the government are not bothered by the House Rent Allowance because the government doesn’t pay them any House Rent Allowance. Moreover, most higher officials stay in government accommodations.
Decisions on allowances offered to the armed forces are of special significance.
More than 50 lakh employees are hoping that the Centre will implement the revised allowances from April 1 onwards.
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.
Air India LTC 80 Fare as on March 2017 for Central Government Employees
Travel by Air while availing LTC – Air India LTC 80 Fare as on March 2017 – Central Government Employees travelling on LTC will have to purchase only Air India Tickets under LTC 80 Fare
Instructions issued by Govt from time to time envisages that Central Government Employees will have to travel only by Air India by purchasing LTC 80 tickets, when they avail Air under Leave Travel concession.
Govt has also issued instructions regarding eligibility for reimbursement of Private Air tickets fare other than Air India LTC 80 Tickets, in certain circumstances such as non-availablity of Air India flights, tickets etc.
The Latest Air India LTC 80 Fare with effect from March 2017 along with Air India’s conditions for booking air tickets under LTC concession.
|Eligibility:||Air India offers LTC in Economy and Business class Indians and their family members traveling on leave.For the purpose of concession, the family includes Spouse, dependent children 12Yrs and above and dependent Parents. They must be employed in the following institutions where leave facility is available:- Central & State Government.
– Public Sector Organizations.
– Educational Institute recognized / aided by Central / State Governments and / or officiated to any of the Universities / Education Boards.
|Required Documents:||Official ID card. Family members to carry the copy of the same.|
|Discount:||Specific HLTC fare in Economy and DLTC in Business class.|
|Travel:||Any sector within India.|
|Ticket Validity:||1 Year from date of issue|
|Advance Purchase:||Not required. Ticket can be purchased any time|
|Children:||Normal discount on the class of travel. No additional discount applies.|
|Infant:||(Under 2 years) 1st accompanying Infant – Rs.1000 per coupon, Plus applicable taxes. 2nd and more Infants, no discount permissible.|
|Date/Flight change, Cancellation & Refund:||Permitted – Fee applies|
TABLE – IV : LTC Fares
|SECTOR & V.V||HLTC (Economy Class)||DLTC (Executive Class)|
|Base Fare||Base Fare|
Meeting of the Committee constituted to suggest measures for streamlining the implementation of the National Pension System (NPS) for Central Government Employees
Meeting of the Committee constituted to suggest measures for streamlining the implementation of the National Pension System (NPS) for Central Government Employees
National Federation of Indian Railwaymen
The General Secretaries
Of Affiliated Unions of NFIR
Sub: Meeting of the Committee constituted to suggest measures for streamlining the implementation of the National Pension System (NPS) for Central Government Employees – reg.
A Meeting of the Committee with JCM (Staff Side) under the chairmanship of Secretary (Pension), Department of Pension & Pensioners Welfare was held at sardar patel Bhavan, New Delhi on 17th March 2017 at 15.00hrs. Brief on the discussions is given below:
(i) At the outset, Secretary (Pension) stated that the Committee will try to consider and propose for safeguarding the interests of pensioners appointed on or after 01-01-2004. He said that the purpose of meeting was to elicit views from JCM (Staff Side) and make out report with an attempt to accommodate the views by and large.
(ii) Thereafter, the Additional Secretary (Pension) made a brief presentation highlighting the attempts of the Committee for formulating Rules. Regulations and procedures to be considered by the Government.
(iii) Initiating discussion, the JCM (Staff Side) leaders have reiterated their consistent stand that the Liberalized Pension Scheme needs to be made applicable to those who joined the Government service from 01-01-2004.
2.The JCM (Staff Side) leader Dr.M.Raghavaiah and Standing Committee Member, Shri Guman Singh have participated in the meeting and pointed out as follows:
(a) The Committee should consider for recommending 50% of Last Pay drawn as minimum pension to the retiring NPS subscribers irrespective of their total service.
(b) The Pension Rules of 1972 be incorporated in the proposed draft Rules in an appropriate manner, thereby pension is guaranteed to the families of retired/deceased employees and their dependents.
(c) While 60% of Pension wealth will be paid to the retiring NPS subscriber, the remaining 40% is invested by PFRDA on which retiring employee has no control. What is needed to be ensured is Guarantee for payment of 50% of Last Pat drawn as Pension. Remaining 40% pension wealth may be invested or used by PFRDA on which retiring employee may have no claim.
(d) In the Railways, the employer deducts 10% of wages from employee’s salary towards subscription and contributes equal amount. No Railway employee knows what their actual amount is, as no written statement is furnished by the employer. The JCM (Staff Side) is not concerned about the role of PFRDA -NSDL etc., as every Railway employee wants to know what is his/her amount (subscription plus contribution). It should be ensured that Railways should give at least annually, the statement of accumulated amount to the employee so that on the date of his retirement, he/she will know whether entire money was credited to PFRDA and equally he/she will know what would be 60% of the total pension wealth. The present defective system needs to be streamlined.
The above is for information of affiliates.
Most of the Central Government employees feel that the enhancement of DA/DR is meager
Calculation of DA/DR based on AICPIN only
“Calculation of Dearness Allowance and Dearness Relief for Central Government Employees and Pensioners based on the methodology prescribed by the recommendations of Central Pay Commission”
Dearness Allowance is issued twice a year and the Seventh Pay Commission has adopted the same calculation methods that were prescribed by the Sixth Pay Commission.
The same series of the All-India Average Consumer Price Index Numbers for Industrial Workers (Base 2001=100) are used for the calculation of DA/DR to be continued. The 7th CPC recommendations are implemented from 1.1.2017 and no DA from 1.1.2017 to 1.7.2017. And from 1.7.2017, 2% DA calculated as per the same formula recommended by 6th CPC. And then now, same calculation with the Consumer Price Index, the figure of two percent was arrived.
Most of the Central Government employees feel that the enhancement of DA/DR is meager.
The Central Government had nothing to do with the Dearness Allowance issued to the Central Government employees in the past, which were as high as 10 percent. Similarly, the government is in no way connected with the current announcement of two percent DA/DR.
The same AICPIN (CPI IW BY2001=100) adopted for the calculation of Dearness Allowance to draw their pay in the pre-revised pay scale of 5th and 6th CPC. For 6th CPC, 4% Dearness Allowance was calculated on the basis of the same method. In other words, it will be expected to increase from 132 percent to 136.
The Dearness Allowance is calculated based on the changes in the prices of essential commodities in 75 cities and towns in India, over a period of six months. The monthly data, called the AICPIN, are released each month, by the Labour Bureau under the Ministry of Labour and Employment.
Central Government employees and Pensioners are not only getting the DA and DR, also employees working under Bank, CPSE etc,. The CPI(I-W) series are used for the calculation of DA for Bank Staff and IDA for CPSE employees. Almost the same enhancement of DA will adopt for the employees working in State Governments. Consumer Price Index will impact on the salaries and pension of more than 2 crore employees and pensioners directly.
Just watch the difference of DA amount between 6th and 7th CPC:
|As on 1.1.2016||As on 1.7.2016||DA from 1.1.2017|
|6th CPC Basic Pay||10,000 (2400GP)||10,300||412 (4%)|
|7th CPC Matrix Pay||26,300||27,100||542 (2%)|
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.
16th March 2017 Strike – Participation of Employees All Time High
Dated – 18.03.2017
1) All National Secretariat Members (CHQ Office Bearers)
2) Chief Executives of all Affiliated organisations
3) General Secretaries of all COCs
1. 16th MARCH 2017 STRIKE – PARTICIPATION OF EMPLOYEES ALL TIME HIGH:
Reports received from Affiliated organisations and COCs and also many field level units shows that the participation of employees in the 16th March 2017 strike was all time high. The reason is obvious that the employees are angry and upset due the totally adamant and negative attitude of the NDA government towards the genuine issues of Central Govt. employees and pensioners and their discontentment was ventilated through the strike as an outburst of their pent up feelings. The response to the strike call was overwhelming and majority of employees suo-moto participated in the strike without any compulsion. This was also quite visible during the 15th December 2016 Parliament March and other agitational programmes including dharna and observance of 6th March 2017 Black Day. (For other details please see the press statement dated 16.03.2017 published in the Confederation website). Confederation National Secretariat congratulates and salutes all the leaders and employees who organized and participated in the strike and made it one of the best organized and best participated historic strike of Central Government Employees. Once again it is proved that it is Confederation alone, which is the true representative of entire Central Government employees.
NATIONAL SECRETARIAT MEETING ON 13TH APRIL 2017 WILL DECIDE FUTURE COURSE OF ACTION.
National Secretariat of the Confederation will meet at Delhi on 13.04.2017, as already notified. Secretariat will conduct a detailed review of the strike and decide future course of action. All National Secretariat members are requested to attend the meeting without fail.
CONFEDERATION ALL INDIA TRADE UNION EDUCATION CAMP AT THIRUVANANTHAPURAM ON 06TH & 07TH MAY 2017:
As already notified, the All India Trade Union Education Camp of Confederation will be conducted at EMS Academy, Thiruvananthapuram on 6th & 7th May 2017. All affiliated organisations and COCs are one again requested to ensure participation of allotted number of delegates WITHOUT FAIL. Please ensure that travel tickets are booked immediately, if not already booked. (Notice was issued in January itself to facilitate booking of confirmed train tickets, as train reservation starts four months in advance).
Quota allotted to each organisation and COC and other informations relating to the camp are is furnished in the circular attached.
While selecting delegates to the camp, younger generation and ladies may be given maximum representation.
Please intimate the number of delegates attending the camp by email to email@example.com OR firstname.lastname@example.org and also to the Reception Committee.
REMITTANCE OF QUOTA:
Needless to say that for smooth and efficient functioning of an organisation, especially for a vibrant organisation like Confederation, funds is an essential requirement. Unfortunately, many affiliates and COCs are continuously failing in their responsibility to support the Confederation CHQ financially. Available fund has been utilized for Parliament March and strike campaign. Now the financial position is almost NIL. Unless all the affiliates and COCs clear their quota immediately, it will adversely effect the CHQ functioning. All affiliates and COCs are one again requested to clear the quota (Re.1/- per member per year) before 31.03.2017. Please treat it as most important. The amount may be remitted to:
Com. Vrigu Bhattacharya,
Confederation of C. G. Employees & Workers (CHQ)
17/C, P & T Quarters, Kalibari Marg,
New Delhi – 110001
Bank Account details
Bank – Indian oversees Bank
Branch – Gole Market, New Delhi
Account No. 084001000015586
IFS Code – IOBA0000840
JOINT MOVEMENT AND CAMPAIGN AGAINST CONTRIBUTORY PENSION SCHEME (NPS) AND OUTSOURCING OF GOVT. FUNCTIONS
Discussion are in progress for organizing nationwide campaign and agitational programmes against the NPS and outsourcing of Government functions, jointly with All India State Government Employees Federation (AISGEF) and other like-minded organisations. Final decision in this regard will be taken in the National Secretariat meeting to be held on 13th April 2017.
16th March 2017 Strike Report – Karnataka COC
16th March 2017 strike report
I thank one and all the Central Government Employees of the Karnataka State who are affiliated to the Confederation of CG employees for making the 16th March 2017 strike a grand success , the leaders of the affiliates were working for making this strike a success . The Central leaders Com KKK Kuttyji President Confederation of CG employees had been to the state of Karnataka many times , his valuable guidance has inspired us very much . I also thank Com Krishnanji Secretary General Confederation of CG employees for his valuable guidance in making 16th March 2017 strike a grand success.
The participation of employees in 16th March 2017 strike was very good in Karnataka state , apart from Bangalore CG employees in all districts of the state of Karnataka had participated in the strike , this time there was huge success , this is due to the success campaign by all leaders , it was a joint effort .
The strike in Postal was historic, many of the Post offices were locked and the strike participation was nearly 90%.
The participation in ITEF, AICGWBEA, RMS was near to 100%, In Survey of India, AG’s Census it was nearly 70%, Civil Accounts for the first time participated with 95% strike.
The media have given good coverage of the strike, the article and photos of the strike were taken and published in many newspapers in many parts of the state.
Com Tapen Senji Hon’ble Member of Rajya Sabha has raised our justified demands in the floor of the Rajya Sabha. On behalf of COC Karnataka I express my gratitude to Com Tapen Senji for taking up the issues.
I hope our demands gets attention of the Government, the promises made to our leaders by the Group of Ministers is kept up and your issues get resolved at the earliest. I once again thank all the employees and leaders for making this strike of 16th March 2017 a success.
4% of 7th CPC Basic Pay as DA from Jan 2017
“The central cabinet has given its approval for issuing additional Dearness Allowance of 2% from July 1, 2017 onwards.”
Including the additional 2% DA announced earler by the Central Government, DA will be 4% of the 7th CPC basic pay from Jan 2017 for Central Government Employees.
With the Confederation of Central Government employees announced a nationwide day-long strike on 16th March 2017, the government announced an additional Dearness Allowance of 2 percent a day before on 15th March 2017.
The employees believe that the announcement was made much earlier. Even last year, the cabinet issued its approval for the second installment of July only on October 27. The Ministry of Finance issued the Government Order on November 4. But this time, in an unexpected and surprising move, the Dearness Allowance is announced much before its due time. The payment of Dearness Allowance will be issued to all categories of Central Government employees only after the Ministry of Finance issues an Office Memorandum.
Cabinet approves additional 2% Dearness Allowance / Dearness Relief due from January, 2017
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2017. It has increased by 2% over the existing rate of 2% of the Basic Pay/Pension, to compensate for price rise.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 5,857.28 crore per annum and Rs.6,833.50 crore in the Financial Year 2017-18 (for a period of 14 months from January, 2017 to February, 2018).
This will benefit about 48.85 lakh Central Government employees and 55.51 lakh pensioners.
Historic Strike of Central Government Employees will begin within a few hours – Confederation
CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES & WORKERS
16TH MARCH 2017
BATTLE LINES ARE DRAWN
WELL SET FOR ACTION
Within a few hours the historic strike of Central Government Employees including Gramin Dak Sevaks, Casual, Part-Time, Contingent, Daily rated and Contract workers will begin. From Kashmir to Kanyakumari, from North East to Gujarat the strike will be a thundering success. It is an outburst of anger and protest against those who betrayed the central government employees and pensioners.
NDA Govt’s Home Minister Shri Rajnath Singh, Finance Minister Shri Arun Jaitley and Railway Minister Shri Suresh Prabhu cheated and betrayed the cause of 33 lakhs Central Govt. Employees and 34 Lakhs pensioners.
Justice is on our side
Betrayers are on the other side
Ultimate victory will be ours as we believe in
Truth, Justice and Fairplay
We are not ready to surrender the self-respect and prestige of 33 lakhs Central Govt. Employees and 34 lakhs Pensioners. Confederation is not an organization of cowards to run away from the battle field half way.
WE SHALL FIGHT AND FIGHT AND FIGHT AND FIGHT TILL OUR LEGITIMATE DEMANDS ARE SETTLED
COME WHAT MAY, WE SHALL STRIKE, STRIKE, STRIKE AND STRIKE
We are ready for any sacrifice to protect the interest of Central Govt. Employees and Pensioners and also for the larger interest of the toiling masses of our country.
Where other organizations failed and compromised, it is confederation – Confederation alone – which has accepted the challenge to fight against the Government which betrayed the entire Central Govt. Employees and Pensioners.
Confederation is the only glorious organization of hope and inspiration for the entire Central Govt. Employees and Pensioners.
Come one, Come all, Come in Hundreds and Thousands and Lakhs.
Let us make the 16th March 2017 Strike a resounding success.
Let us march forward with determination and courage.
We are not alone, we are not afraid and we shall overcome.
Mob & WhatsApp – 09447068125
DOPT prohibit the Government Employees from participating in any form of strike
DOPT prohibit the Government servants from participating in any form of strike
Strike Notice for 16th March, 2017 – Instructions under CCS (Conduct Rules) 1964
Government of India
Ministry of Personnel. P.G. & Pensions
Department of Personnel & Training
North Block. New Delhi.
Dated the 15th March 2017
Subject : Strike Notice for 16th March, 2017 – Instructions under CCS (Conduct Rules) 1964 – Regarding.
It has been brought to the notice of the Government that Confederation of Central Government Employees and Workers. New Delhi has given a notice that the members of the affiliates of the Confederation will go on strike on 16th March, 2017 in pursuance of their 7th Central Pay Commission Demands
2. The instructions issued by the Department of Personnel and Training prohibit the Government servants from participating in any form of strike including mass casual leave, go slow etc, or any or any action that abet any form of strike in violation of Rule 7 of the CCS (Conduct) Rules. 1964. Besides, in accordance with the proviso to Rule 17(1) of the Fundamental Rules, pays and allowances is not admissible to an employee for his absence from duty without any authority. As to the concomitant rights of an Association after it is formed, they cannot be different from the rights which can be claimed by the individual members of which the Association is composed. It follows that the right to form an Association does not include any guaranteed right to strike. There is no statutory provision empowering the employees to go on strike. The Supreme Court has also ruled in several judgments that going on a strike is a gravy misconduct under the Conduct Rules and that misconduct by the government employees is required to be dealt with in accordance with the law. Any employee going on strike in any form would face the consequences which. besides deduction of wages. may also include appropriate disciplinary action. Attention of all employees of this Department is also drawn to this Department’s O.M. No. 33012/I/(s)/2008-Estt.(B) dated 12.9 2008. on the subject for strict compliance.
3. All officers are requested that the above instructions may be brought to the notice of the employees working under their control. All officers are also requested not to sanction Casual Leave or other kind of leave to the officers and employees if applied for, during the period of proposed strike. and ensure that the willing employees are allowed hindrance free entry into the office premises.
4. In case employees go on strike all divisional heads are requested to forward a report indicating the number and details of employees who are absent from duty on the day of strike i.e.16.03.2017
Deputy Secretary to the Govt. of India
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.
CGHS facilities are not provided to persons working on contractual and co-terminus basis
GOVERNMENT OF INDIA
MINISTRY OF HEALTH AND FAMILY WELFARE
UNSTARRED QUESTION NO: 1742
ANSWERED ON: 10.03.2017
Adhikari Dibyendu 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 the Government issues CGHS cards to all Central Government employees including the persons working on contractual and or co-terminus basis and if so, the details thereof; (b) whether the Government is not giving CGHS pensioner facilities to the person or families at the end of contract and termination of employment therefor;
(c) if not, the reasons behind thereof;
(d) the total number of cards that have been issued to the contractual and the coterminous employees drawing salary from the central exchequer during the last three years therein; and
(e) the proposal of the Government to facilitate them with one time/whole life CGHS pensioner cards therefor?
THE MINISTER OF STATE IN THE MINISTRY OF HEALTH AND
(SHRI FAGGAN SINGH KULASTE)
(a): CGHS Cards are issued to Central Government employees and employees on co-terminus basis who are residing in CGHS covered areas. CGHS facilities are not provided to persons working on contractual basis.
(b) & (c): CGHS facilities are not provided to the employees on the termination of employment on co-terminus basis since CGHS facilities are primarily meant for Central Government Employees/Pensioners drawing salary/pension from Central Civil Estimates.
(d): No separate category is maintained regarding co-terminus employees and therefore, this information cannot be provided.
(e): There is no such proposal.
PFRDA: Let government staffs pension funds to invest 50% in equities
Hyderabad: The pensions fund regulator Pfrda wants government to more than treble investment levels in equity markets by government subscribers under the National Pension System (NPS) up to 50 per cent from 15 per cent now.
The regulator has sent a proposal to government seeking to allow government subscribers (state and Central government employees) invest up to 50 per cent in equities under the NPS, Pension Fund Regulatory and Development Authority chairman Hemanth Contractor said here today.
The authority manages about Rs 1.70 trillion of funds belonging to 1.5 crore subscribers who come from government and non-government sectors. Of this 85 per cent are government subscribers which are managed by seven fund managers.
We have taken up very strongly with the government that government subscribers should be given the same choices as are available to the non-government subscribers who can invest up to 50 per cent in equity markets.
“So, what we are telling the government is that you give the same choices. Since government subscribers account for bulk of the fund this will mean a big change. Lot of money can start flowing in to equities,” Contractor said.
The government is quite sympathetic to our view, he said, adding they had several rounds of discussions and he expects this to happen in the next couple of months.
“We are quite optimistic about this. It should happen,” he added.
According to him, the non-government sector accounts for 15 per cent of the overall corpus.
Replying to a query, he said he has written to government seeking clarity on the regulation of some pension products offered by mutual funds and insurance companies as they are currently regulated by another regulator Irdai.
“Since we became a statutory body in 2013, we are the designated regulator of the pensions industry. So we’ve told government that all the other pension schemes floated by MFs, insurance companies should actually be regulated by us. The government is looking into our demand and has in fact set up a committee to look into the issues,” Contractor said.
On the growth of the sector, he said the NPS recorded a growth of 35 per cent in the number of subscribers last year and a little over 40 per cent in the fund that it manages and this year also the growth would be on similar lines.
Contractor also said they have suggested to the government to raise the age-limit for subscribers of Atal Pension Yojana to 50 from 40 now and increase the pension slab from the present Rs 5,000 to Rs 10,000 a month.
Meanwhile, Karvy Compushare was appointed as the second central record-keeping agency (CRA) for serving subscribers of NPS by the Pfrda.
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.
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|
|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|
2% Dearness Allowance Hike Likely For Central Government Employees From January 1
The Centre is likely to announce a hike of 2-4 per cent in dearness allowance for its about 50 lakh employees and 58 lakh pensioners later this month.
New Delhi: The Centre is likely to announce a hike of 2-4 per cent in dearness allowance for its about 50 lakh employees and 58 lakh pensioners later this month.
Dearness allowance and dearness relief are provided to employees and pensioners to neutralise the impact of inflation on their earnings. The labour unions, however, are not happy with the proposed hike saying it would not be able to offset the real impact of price rise.
“The dearness allowance as per the agreed formula by the Centre works out to be 2 per cent which would be effected from January 1, 2017,” Confederation of Central Government Employees President K K N Kutty told PTI.
However, Kutty expressed dissatisfaction over such a “meagre” hike saying that the consumer price index for industrial workers (CPI-IW) which is an agreed benchmark for increasing dearness allowance is far from reality.
He said that there is difference between the quantum of price rise of commodities ascertained by the Labour Bureau and the Ministry of Agriculture.
CPI-IW is an imaginary number due to poor quality of data collection by Labour Bureau and it is far from reality, he claimed.
The average CPI-IW to be taken into account for raising DA is 4.95 per cent from January 1 to December 31, 2017. Since the government has already hiked the dearness allowance by 2 per cent in October last year from July 1, 2016, it will now raise it further by 2 per cent.
As per an agreed upon formula, the Centre hikes the allowance taking 12-month average of retail inflation. The government does not consider the price rise rate beyond a decimal point for deciding the rate of the dearness allowance.
Therefore, despite the fact that the hike works out to be 2.95 per cent, the government will ignore the rate of price rise beyond decimal point and increase the DA by 2 per cent.
The dearness allowance is paid as proportion of the basic pay of the central government employees.
Kutty said that the federation in the next meeting of the national council would make a case for considering the fractions while fixing DA.
The national council is an apex forum functioning under the Department of Personnel and Training where unionists and senior official discuss issues concerning central employees.
Earlier last year, the government hiked DA by 6 per cent to 125 per cent of basic pay. The DA was later merged into the basic pay following the implementation of the 7th Pay Commission award.
At present the Central government employees and pensioners are entitled to 2 per cent dearness allowance, which was effected from July 1, 2016.
BLACK DAY: 6th March 2017, CONFEDERATION NATIONAL SECRETARIAT CALLS UPON ALL CENTRAL GOVERNMENT EMPLOYEES
BLACK DAY: 6th March 2017, CONFEDERATION NATIONAL SECRETARIAT CALLS UPON ALL CENTRAL GOVERNMENT EMPLOYEES
CONFEDERATION NATIONAL SECRETARIAT CALLS UPON ALL CENTRAL GOVERNMENT EMPLOYEES
Observe 6th March 2017
- Against the betrayal of Central Government employees and pensioners by Group of Ministers of NDA Government.
- Demanding increase in minimum pay and fitment formula.
We know that all of you are in the midst of hectic preparation and campaign for making the 16thMarch Strike action a great success. As has been explained in the article, which we have placed on our website, the NDA Government, led by BJP has exhibited the worst anti-employee attitude in the post independent era of our country. This Government has treated its own employees as its worst enemy. The decision taken by the Union Cabinet on 29th June, 2016 rejecting even the recommendations made by the high level committee chaired by the Cabinet Secretary was unprecedented. Even the setting up of various committees was nothing but an eye wash. Nothing will come out of that. Even the NPS Committee on which the young comrades had pinned some hope of at least getting a minimum guaranteed pension will produce nothing. The discussions at the JCM fora has been converted into mostly monologues i.e. the official side simply listening and not reacting. The Government, it appears, has made the Pension department to reject the one and only recommendation of the 7th CPC which was considered to be positive i.e. Option No.1 for pensioners on the specious ground that the same is not feasible to be implemented. The allowances committee has dilly dallied its deliberation and would now submit its report after the extended period of 6 months expires on 22.02.2017. Even if they make any positive recommendation, which is seldom expected, the NDA Government would not act upon it. They have very successfully postponed the payment of the revised allowance for 15 months.
In the face of such terrible onslaught, betrayal and chicanery, which no Government in the past has every indulged in, it is surprising that some of our friends who has a predominant role in the movement of the Central Government employees has unfortunately chosen to wait and watch. It appears that they have chosen to wait endlessly hurting the cause of the workers.
We have no hesitation to affirmatively state the obvious that we have chosen the right path, the path of struggles, which can only the choice of the working class against tyrannical attitude of the employer, howsoever, powerful they may be. We must realize that those who are in the saddle of power today are not permanently posted there. We were witness to the abysmal downfall of persons who were arrogant personified. It appears that the reasonableness, righteousness and patience we had exhibited have been taken as signs of cowardice. The undeniable fact is that those who fight, only can win. We, therefore, appeal to you to carry on with conviction and courage.
Eight months will be over on 6th March, 2017, when the Group of Ministers held out the assurance of revisiting the minimum wage and multiplication factor. It is now crystal clear that that was an act of chicanery. No committee was set up and no discussions were held to seriously consider the issue. We, therefore, appeal to all of you to ensure that the day, i.e. 6thMarch, 2017 is observed as a day of betrayal and all our members are requested to wear a Black badge with the following words inscribed on it in bold letters and conduct demonstrations in front of all Central Government offices.
HONOUR THE COMMITMENT MADE ON
30th June & 6th JULY, 2016
REVISE THE MINIMUM WAGE AND
6TH March 2017 must be yet another occasion to mobilize our members to ensure their participation in the 16th March, 2017 strike action and ultimately win all the demands in the charter.
We fight to win and we shall win.
(M Krishnan S/G Confd.)
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.