Posts Tagged ‘Dearness Allowance’

Implementation Date of 7th CPC Allowances – Minister Replied in Parliament on 18.7.2017

Implementation Date of  7th CPC Allowances – Minister Replied in Parliament on 18.7.2017

“There is no proposal for revision of the date of implementation of recommendation on allowances”

Government of India
Ministry of Finance
Department Of Expenditure

RAJYA SABHA
UNSTARRED QUESTION NO.257

TO BE ANSWERED ON TUESDAY, THE 18TH JULY, 2017
ASHADHA 27, 1939 (SAKA)

IMPLEMENTATION OF RECOMMENDATIONS OF SEVENTH CPC
QUESTION

257 SHRI NEERAJ SHEKHAR:

Will the Minister of FINANCE be pleased to satate:

(a) whether Government has implemented the recommendations of Seventh CPC regarding allowances w.e.f. 1 July, 2017 instead of 1 January, 2016;

(b) if so, the reasons and rationale therefor;

(c) the reasons for denying allowances from 1st January 2016 or from the date of announcement for implementation of enhanced basic pay under 7th CPC and arrears thereof;

(d) whether Government will review it and implement enhanced allowances w.e.f. 1 January, 2016;

(e) if so, the details thereof; and

(f) if not, the reasons therefor along with the reasons for lowest hike in Pay Commission since last 70 years?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ARJUN RAM MEGHWAL)

(a) to (c): As per the established practice relating to implementation of earlier Central Pay Commission’s recommendations on allowances, the recommendations of the Seventh Central Pay Commission (7th CPC) on allowances have been implemented prospectively with effect from 01.07.2017.

In view of significant departure from the existing provisions relating to allowances as recommended by the 7th CPC and representations received in this regard, recommendations of the 7th CPC on allowances were referred to a Committee by the Government. After taking into account the recommendations of the Committee on Allowances which submitted its Report on 27.04.2017, the recommendations were approved by the Government on 28.06.2017.

(d) to (f): There is no proposal for revision of the date of implementation of recommendation on allowances. The hike is based on the recommendation of the 7th CPC on allowances, which is commensurate with the rise in Dearness Allowance as has been mentioned by the 7th CPC at Para 8.2.5 (4) of its Report.

Source: Rajya Sabha

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The Central Governments decision on recommendations of the 7th Central Pay Commission (CPC) on Allowances published in Gazette of India yesterday i.e. 6th July, 2017; All allowances are given effect from 1st July 2017

The Central Governments decision on recommendations of the 7th Central Pay Commission (CPC) on Allowances published in Gazette of India yesterday i.e. 6th July, 2017; All allowances are given effect from 1st July 2017; 

Concerned Ministries advised to issue their Orders on Allowances governed by them immediately so that the revised rates of allowances get reflected in the current month’s Salary Bills of the Government employees 
Resolution conveying the Central Governments decision on recommendations of the 7th Central Pay Commission (CPC) on Allowances has been published in Gazette of India yesterday i.e.6th July, 2017.

Based on the Report of Committee on Allowances (CoA) and the recommendation of E-CoS, the Cabinet had earlier approved the modifications in 34 Allowances in its Meeting held on 28th June 2017.

All allowances are given effect from 1st July 2017.

Concerned Ministries have now been advised to issue their Orders on Allowances governed by them immediately so that the revised rates of allowances get reflected in the current month’s Salary Bills of the Government employees.

Major Highlights of the Allowances approved by the Union Cabinet are as follows: 

  • Cabinet approved recommendations of 7th CPC on allowances with 34 modifications – revised rates effective from 01.07.2017
  • It will benefit 34 lakh Civilian employees and 14 lakh Defence Forces personnel
  • 7th CPC examined 197 allowances, recommending abolition of 53 allowances and subsuming 37 in others.
  • 7th CPC recommended revised rates commensurate with Dearness Allowance
  • Fully DA-indexed allowances – no raise, not DA indexed raised by 2.25, partially indexed raised by 1.5, % based rationalised by 0.8
  • Risk & Hardship Matrix evolved for allowances linked to risk and hardship
  • 7th CPC projected additional financial implication at Rs.29,300 cr per annum, modifications to have additional implication of Rs.1448.23 cr
  • Combined additional financial implication estimated at Rs.30748.23 crore per annum.

1. Number of allowances recommended to be abolished and subsumed:

  • Government decided not to abolish 12 allowances in view of specific functional requirements
  • 3 of 37 subsumed allowances will continue as separate identities due to unique nature of these allowances.

2.House Rent Allowance (HRA)

  • HRA will be paid @24%, 16% & 8% for X, Y & Z cities respectively
  • HRA not to be less than Rs.5400, 3600 & 1800 for X,Y&Z cities, calculated @30,20,&10% of min pay of Rs.18000 – to benefit >7.5 lakh employee
  • 7th CPC recommended revision of HRA when DA reaches 50% & 100%, Govt decided to revise rates when DA crosses 25% and 50% respectively.

3. Siachen Allowance:

  • Rates of Siachen Allowance increased from Rs.14000 pm (Soldiers) to Rs.30000 & Rs.21000 pm (Officers) to Rs.42500 for extreme risk & hardship.

4. Dress Allowance:

  • Government decided to pay Dress Allowance to Nurses on monthly basis due to high maintenance and hygiene requirements.
  • Higher rate of Dress Allowance for Special Protection Group accepted by Govt.

5. Tough Location Allowance:

  •  7th CPC recommended-TLA not to be granted with SDA-Govt decided to give option of SCLRA at pre-revised rates with SDA at revised rates

6. Recommendations in respect of some important allowances paid to all categories:

  • Children Education Allowance increased from Rs.1500 pm/child (max.2) to Rs.2250/child and Hostel Subsidy increased from Rs.4500 pm to Rs.6750 pm.
  • Special Allowance for Child Care for Women with Disabilities doubled from Rs.1500 pm to Rs.3000 pm
  • Higher Qualification Incentive for Civilians increased from Rs.2000 – Rs.10000 (Grant) to Rs.10000 – Rs.30000 (Grant)

7. Recommendations in respect of some important allowances paid to Uniformed Services: Defence, CAPFs, Police, Indian Coast Guard and Security Agencies

  • Abolition of Ration Money Allowance and free ration to Defence officers in peace areas not accepted, RMA to be credited in bank account
  • Technical Allowance (Tier-II) not to be merged, Govt. decided to continue Technical Allowance (Tier-II) @Rs.4500 pm-courses to be reviewed
  • Aeronautical Allowance increased Rs.300 pm to Rs.450 pm and extended to Indian Coast Guard also
  • Counter Insurgency Ops (CI Ops) Allowance for counter – insurgency ops increased from Rs.3000 – Rs.11700 pm to Rs.6000 – Rs.16900 pm
  • MARCOS and Chariot Allowance paid to marine commandos increased from Rs.10500 – Rs.15750 pm to Rs.17300 – Rs.25000 pm
  • Conditionality of 12 hrs reduced to 4 hrs for Sea Going Allowance and rates increased from Rs.3000 – Rs.7800 pm to Rs.6000 – Rs.10500 pm
  • COBRA Allowance granted to CRPF personnel in Naxal hit areas increased from Rs.8400 – Rs.16800 pm to Rs.17300 – Rs.25000 pm
  • Modified Field, Field & Highly Active Field Area Allowances increased from Rs.1200 – Rs.12600 pm to Rs.6000 – Rs.16900 pm.
  • Flying Allowance increased from Rs.10500 – Rs.15750 pm to Rs.17300 – Rs.25000 pm and extended to BSF Air Wing also
  • High Altitude Allowance increased from Rs.810 – Rs.16800 pm to Rs.2700 – Rs.25000 pm
  • Higher Qualification Incentive for Defence Personnel increased from Rs.9000 – Rs.30000 (Grant) to Rs.10000 – Rs.30000 (Grant).
  • Test Pilot and Flight Test Engineer Allowance increased from Rs.1500 / 3000 pm to Rs.4100 / 5300 pm
  • Additional Free Railway Warrant (Leave Travel Concession) extended to CAPFs.
  • Territorial Army Allowance increased from Rs.175 – Rs.450 pm to Rs.1000 -Rs. 2000 pm
  • Ceilings of Deputation (Duty) Allowance for Defence Personnel increased from Rs.2000 – Rs.4500 pm to Rs.4500 – Rs.9000 pm
  • Detachment Allowance increased Rs.165 – Rs.780 per day to Rs.405 – Rs.1170 per day
  • Para Jump Instructor Allowance increased from Rs.2700/3600 pm to Rs.6000/10500 pm
  • Govt. increased Special Security Allowance for Special Protection Group to 55% and 27.5% of BP for ops and non – ops duties
  • Housing provisions for PBORs and their families residing at other stations significantly improved and linked to HRA, process simplified

8. Allowances paid to Indian Railways

  • Additional Allowance increased from Rs.500 / 1000 pm to Rs.1125 / 2250 pm and extended to Loco Pilot Goods and Senior Passenger Guards @Rs.750 pm
  • Special Train Controllers Allowance @5000 pm introduced for Train Controllers of Railways

9. Allowances paid to Nurses & Ministerial Staffs of Hospital

  • Government increased rate of Nursing Allowance from Rs.4800 pm to Rs.7200 pm
  • Operation Theatre Allowance not abolished and rates increased from Rs.360 pm to Rs.540 pm
  • Hospital Patient Care Allowance/Patient Care Allowance increased from Rs.2070 – Rs.2100 pm to Rs.4100 – Rs.5300 pm
  • 7th CPC recommendations modified and HPCA / PCA to continue for Ministerial staff

10. Allowances to Pensioners

  • Fixed Medical Allowance for Pensioners increased from Rs.500 pm to Rs.1000 pm
  • Constant Attendance Allowance on 100% disablement increased from Rs.4500 pm to Rs.6750 pm

11. Allowances to Scientific Departments

  • 7th CPC recommendations to abolish Launch Campaign Allowance and Space Technology Allowance not accepted – rates revised from Rs.7500 pa to Rs.11250 pa
  • Professional Update Allowance for non-gazetted staff of DAE will continue at enhanced rate of Rs.11250 pa
  • Antarctica Allowance – Summer rates revised from Rs.1125 per day to Rs.1500 per day, Winter rates from Rs.1688 per day to Rs.2000 per day

12. Allowance paid to D/o Posts & Railways

  • Cycle Allowance not abolished – rates doubled from Rs.90 to Rs.180 pm for functional requirements of Postmen in Posts and Trackmen in Railways.

PIB

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DA for july 2017 is 1%, When will DA reach 25 for Central Government Employees?

DA for july 2017 is 1%,  When will DA reach 25 for Central Government Employees?

central-government-employees-memes

#CG Employees Memes  #Central Government Employees Memes #DA  #Dearness  Allowance #Central Government Employees

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Enhanced DA after Retirement on 30th June and 31st December to be considered for Retirement Benefits

Enhanced DA after Retirement on 30th June and 31st December to be considered for Retirement Benefits

Shri. JVSR.Krishna raised an important issue in our comments forum. Considering the merits of this issue, we posted here to draw the attention of authorities concerned to take necessary action to address the grievances of similarly placed retiring government servants.

Dearness Allowance & Dearness Relief:

As per the prevailing conditions, Govt of India sanctioning DA once in 6 months i.e. 1st Jan. & 1st July. Based on consumer price index, due to raise in the inflation for the period of once in 6 months i.e. 1st Jan. to 30th June & 1st July to 31st December respectively DA being sanctioned to those Central Govt. employees and as DR to the Central Govt. Pensioners. This DA/DR is cumulatively added every month, for administrative convenience, it was being sanctioned once in 6 months. For those Central Govt. employees who were having DOB 1st of any month are being forcibly superannuated on the last working day of the preceding month. Particularly, those who were having DOB 1st Jan. & 1st July, though they have completed 6 months, sanctioned DA was not considered for calculating Retirement benefits viz. Gratuity & Leave encashment purpose.

Retired Government servants is entitled for revised rate of D.A

whether a retired Government servant is entitled for revised rate of D.A., which comes into force after such Government servant retires from service on attaining the age of superannuation.

As per the Honble. CAT judgement, DA was allowed for calculation of retirement benefits; to those retired on 30th June (DA was sanctioned next to their retirement date. The said case was appealed in Honble. High Court of A.P. the WP was dismissed, further, Govt. of India appealed as SLP in Honble. Supreme Court of India, there also it was dismissed.

Orders were issued for implementation of DA to the Central Govt. Servants, who were working in Accountant General Office, Hyderabad. The same was implemented.

Since, it is a common issue, individuals who were worked in various Departments of Central Govt. should not insisted that who ever will proceed litigation, it will be implemented. It shall be implemented across the board to all the employees to save the money & man power of Govt. of India to avoid litigations.

References: a) CAT Hyderabad Bench OA No.552 of 2003;
b) High Court , Andhra Pradesh WRIT PETITION NO.26506 OF 2012 dt.11/9/2012
c) Supreme Court SLP No.16237/2013 dt.27.10.2014
d) Through Lr No.PAG(G&SSA)/Legal Cell/RTI/F.No.118/2016-17/D.No.45 dt.02/11/2016 intimated that Supreme Court order was implemented for payment of Retirement Gratuity & cash equivalent to leave salary.

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Railway Board Order: Revision of minimum rates of wages and variable dearness allowance w.e.f. 01.04.2017

Revision of minimum rates of wages and variable dearness allowance w.e.f. 01.04.2017: Railway Board Order RBE No.50/2017

dearness-allowances-minimum-wages-railways

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

RBE No. 50/2017

No. 2016/E (LL)/AT/MW/1

New Delhi dated: 05.06.2017

The General Managers, Zonal Railways, Production Units.
Metro Railway, Kolkata, CORE, Allahabad
The General Managers,(Construction), All Indian Railways
The Director General, RDSO, Lucknow
The DG/Railway Staff College, Vadodara
The Directors, IRICEN, IRIEEN, IRISET, IRIMEE, IRITM
The CAO, COFMOW, Tilak Bridge, New Delhi
The CAO, Rail Coach Factory / Raebareli, Kishan Ganj, Delhi-7
The CAO, Rail Wheel Plant, Bela

Sub: Revision of minimum rates of wages and variable dearness allowance w.e.f. 01.04.2017

A copy each of Orders No.(i)1/l3(7)/2017-LS.II, (ii) 1/13/(6)/2017-LS.II, (iii) 1/13/(5)2017-LS.II, (iv) 1/13/(4)/2017-LS.II (v) 1/13/(3)2017-LS.II and (vi)1/13/(1)/2017-LS-II dated 20.04.2017 revising the rates of variable dearness allowance for contract workers engaged in (i) Loading and unloading in goods sheds, parcel offices of Railways, and other goods-sheds, godowns, warehouses and other similar employments (ii) Watch and Ward (Without arms) (iii) Employment of sweeping and cleaning excluding activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993 (iv) Stone mines (v) Construction or Maintenance of Roads or runways or in Building Operations including Laying Down Underground electric, wireless, Radio, Television, Telephone, Telegraph and Overseas Communication Cables and Similar other Underground cabling work, Electric lines, Water supply lines and Sewerage Pipe Lines and (vi) Agriculture respectively is sent herewith for information and strict compliance . The rates are applicable w.e.f. 01.04.2017.

2. Railways, being Principal Employer are required to ensure that the contractors are complying with the provisions of the Contract Labour (R&A) Act, 1970 and Minimum wages Act,”1948- strictly and arranging prescribed minimum wages to the contract labourers.

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

Please acknowledge receipt.

(Manju)
Jt. Director Establishment

Source: NFIR [Click here to view]

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Recommendations of 3rd Pay Revision Committee for revision of pay for executives and non-unionized supervisors in CPSEs

No. 252/21112017-Cab. III
Government of India
Cabinet Secretariat
Rashtrapati Bhavan

New Delhi, dated the 29th May, 2017

OFFICE MEMORANDUM

Sub: Recommendations of 3rd Pay Revision Committee for revision of pay for executives and non-unionized supervisors in CPSEs – reg.

The undersigned is directed to enclose a copy of the minutes of the meeting of Committee of Secretaries (Doc. No. 23/2017-CA.III) held on 12th May, 2017 at 3:15 PM in the Committee Room of the Cabinet Secretariat, Rashtrapati Bhawan on the subject mentioned above.

2. It is requested that the status of action taken on the relevant decisions may kindly be uploaded in the ‘Committee of Secretaries’ module of e-Samiksha portal.

(Alok Tiwari)
Deputy Secretary

CABINET SECRETARIAT

Doc. No. 23/2017-CA.III

MINUTES OF THE MEETING OF COMMITTEE OF SECRETARIES

Venue : Committee Room, Cabinet Secretariat Rashtrapati Bhavan
Date of meeting : 12.05.2017
Time of meeting : 3:15 PM

Sub: Consideration of the recommendations of the 3rd Pay Revision Committee (PRC) for Revision of Pay for Executives and Non-Unionized Supervisors in CPSEs – reg.

SECRET

Subject: Recommendations of 3rd PRC for revision of pay for Executives and non-unionized Supervisors in CPSEs.

A meeting of Committee of Secretaries on the above mentioned subject was chaired by Cabinet Secretary at 3.15 PM on 12.05.2017 in the Committee Room, Cabinet Secretariat, Rashtrapati Bhawan, New Delhi.

2. Secretary, DPE made a presentation on the subject. The deliberations of COS on different recommendations of the 3rd PRC are discussed below.

3. Affordability

(i) Secretary, DPE apprised the COS about the recommendations of the 3rd PRC regarding ‘affordability clause’. She stated that broadly speaking, 3rd PRC had recommended that additional financial impact should be within 20% of average PBT of last 3 years preceding the year of implementation. Secretary, M/o Coal expressed the view that CIL and its subsidiaries may be considered as a single unit for the purpose of the “affordability clause” because the executives in CIL are recruited centrally and are transferrable from holding company to subsidiaries and vice versa.

He stated that this matter has already been considered and approved by Cabinet earlier at the time of implementation of 2007 pay revision. CoS was of the view that past precedent in respect of CIL may be taken into account for ‘affordability’.

(ii) Recommendation The recommendation of 3rd PRC regarding ‘affordability clause’ may be accepted. However, in case of ClL, the holding company and its subsidiaries would be considered as a single unit for the affordability clause as per past precedent.

4. Fitment benefit

(i) Secretary, DPE stated that 3rd PRC had recommended uniform fitment benefit of 15% of Basic Pay plus DA in case the financial impact of the pay revision is within 20% of the average PBT of last 3 years and part fitment slabs of 10% and 5°/o in case the financial impact is more than 20%. After detailed discussion, CoS was of the View that these recommendations were acceptable.

(ii) Recommendation The fitment benefit as recommended by 3rd PRC may be accepted.

5. Dearness Allowance, annual increment, promotion increment, stagnation increment and bunching of pay:

(i) Secretary, DPE apprised that 3″ PRC had recommended continuation of 100% DA neutralization. The annual increment and promotion increment were recommended at 30/0 of basic pay. The provisions regarding stagnation increment and bunching of pay in the situation where a lower fitment benefit (i.e. 10°/o or 5%) is granted due to affordability issues were brought out. There was consensus in the CoS that recommendations of 3rd PRC on these issues may be accepted.

(ii) Recommendation 3rd PRC’s recommendations regarding dearness allowance, annual, promotion and stagnation increments and bunching of pay may be accepted.

100% IDA Neutralization, Annual increment

The CoS has approved the 3% of basic pay for the purpose of annual increment and promotional increment. It also has given the nod for the 100% IDA neutralization for calculating the fitment benefit for existing employees. It means the IDA rate at the time of 31.12.2016 will be merged with the basic pay. Here is the formula for calculating the revised basic pay:

A B C D
(Revised
Basic Pay
w.e.f.
01.01.2017)
Basic Pay + Stagnation increment(s) as on 31.12.2016
(Personal Pay / Special Pay not to be included)
+
Industrial Dearness Allowance (IDA) as applicable on 1.1.2017
[under the IDA pattern computation methodology linked to All India Cumulative Price Index (AICPI) 2001=100 series]
+ 15% of (A+B) + Aggregate amount rounded off to the next Rs.10/-.

6. Pay Protection

(i) Secretary, DPE apprised that 3rd PRC had recommended that a Special Pay should be granted to accord pay protection to executives whose pay after promotion or selection to a Board level position exceeds the maximum of pay-scale of that post. Additional Secretary, D/o Expenditure stated that such a provision is not available in Central Government whereby pay could be fixed beyond the maximum of the scale of a post. Hence, the recommendation was not supported by D/o Expenditure. Secretary, DoPT mentioned that government servants are allowed pay only up to maximum of the scale/level of the post to which they are appointed. CoS observed that the 3rd PRC has recommended fairly wide pay bands along with up to three stagnation increments and therefore there is hardly any likelihood of stagnation in the event of promotion / selection of an executive to a higher post. Besides, taking into account the above views of DoPT and DoE the recommendation of 3rd PRC regarding pay protection may not be accepted.

(ii) Recommendation 3rd PRC’s recommendation regarding pay protection may not be accepted.

7. Pay scales

(i) Secretary, DPE explained that the 3rd PRC had recommended continuing with existing levels and number of pay scales linked to Scheduled classification of CPSEs. Thus, 3rd PRC had recommended revised pay scales corresponding to existing pay scales for each of the existing Grades.

(ii) Recommendation 3rd PRC’s recommendations regarding pay scales may be accepted.

Grade Existing Pay Scale Recommended Pay Scale Applicable Schedule of CPSE
E0 12600-32500 30000-120000 A, B, C, D
E1 16400-40500 40000-140000 A, B, C, D
E2 20600-46500 50000-160000 A, B, C, D
E3 24900-50500 60000-180000 A, B, C, D
E4 29100-54500 70000-200000 A, B, C, D
E5 32900-58000 80000-220000 A, B, C, D
E6 36600-62000 90000-240000 A, B, C, D
E7 43200-66000 100000-260000 A, B, C
E8 51300-73000 120000-280000 A, B,
E9 62000-80000 150000-300000 A
Director 75000-100000 180000-340000 A
CMD 80000-125000 200000-370000 A
Director 65000-75000 160000-290000 B
CMD 75000-90000 180000-320000 B
Director 51300-73000 120000-280000 C
CMD 65000-75000 160000-290000 C
Director 43200-66000 100000-260000 D
CMD 51300-73000 120000-280000 D

8. Perks and allowances

(i) Secretary, DPE informed that the 3rd PRC had recommended that Board of CPSEs may be empowered to provide up to a ceiling of 35% of Basic Pay towards perks and allowances under the concept of ‘Cafeteria Approach’. Further, 3rd PRC had recommended that the ceiling shall be partially linked to Industrial DA (IDA) in future whereby it would be enhanced by 25°/o whenever IDA rises by 50°/o. In addition, it was recommended that cost of infrastructure facilities should not be covered within the ceiling. As regards company-owned accommodation provided to executives, CPSEs would be able to bear Income Tax liability on the ‘non-monetary perquisite’ of which 50% shall be loaded within the ceiling of 35% on perks and allowances. It was pointed out by Secretary, DPE that at present, the ceiling for allowances under ‘Cafeteria Approach’ is not linked to IDA.

(ii) Secretary, DPE stated that 3rd PRC had also made recommendations in respect of certain allowances such as location based compensatory allowance, work based hardship duty allowance and project allowance which are outside the abovementioned ‘Cafeteria Approach’. In addition, it had also recommended that work related administrative expenditure and reimbursement of telephone/internet facility etc. may be allowed outside the ceiling on perks on allowances.

(iii) Secretary, MoCA stated that certain allowances in CPSEs under MoCA such as flying/engineering related allowances applicable to Air Traffic Controllers, Flying Crew etc. may be kept outside the ceiling of 35°/o in order to attract and retain talent. Additional Secretary, D/o Expenditure stated that 7th CPC has recommended hardship and location based allowances on slab basis and not as a percentage of pay. A decision on recommendations of 7th CPC pertaining to allowances of Central Government employees, many of which are closely related to the allowances of CPSE employees which are outside the ‘Cafeteria Approach’, is yet to be taken by Government. The matter was discussed in detail. It was suggested that a view on allowances which are analogous to those of Central Government employees may be taken after the latter are finalized.

(iv) Recommendation The recommendations of 3rd PRC regarding allowances under ‘Cafeteria Approach’ up to a ceiling of 35% excluding the cost on infrastructure facilities and 50% of Income Tax liability on ‘non-monetary perquisite’ related to company owned accommodation may be accepted. Further, the recommendation of 3rd PRC regarding work related administrative expenditure and linkage of allowances under ‘Cafeteria Approach’ with IDA may not be accepted. However, decision regarding other allowances may be taken by DPE in consultation with M/o Finance separately after a decision is taken by Government on the allowances for Central Government employees. Till a decision is taken regarding the other allowances, the existing allowances in CPSEs at existing rates may continue to be paid on pre-revised pay.

9. Performance related pay (PRP)

(i) Secretary, DPE informed CoS that 3rd PRC had recommended that as in the past, PRP should be paid from 5% of profit accruing from core business activities. However, the ratio of relevant year’s profit to incremental profit for calculating PRP has been modified from 60:40 to 65:35. In addition to the existing provision for CPSE and individual Performance, provision has also been made for Team Performance. Thus CPSE Performance, Individual Performance and Team Performance have been given weightages of 50°/o, 20% and 30°/o respectively. Further, 3rd PRC has recommended certain changes in Grade Ceilings of PRP for Executives and discontinuation of forced rating of 10% executives as below par/poor performers.

(ii) Recommendation The recommendations of 3rd PRC regarding PRP may be accepted.

10. Superannuation Benefits

(i) Secretary, DPE stated that 3rd PRC had recommended no change regarding superannuation benefits (i.e. PF, gratuity, post-retirement medical benefits and pension) for which the present ceiling of 30% of Basic Pay + DA had been retained. However, ceiling for gratuity has been raised to Rs. 20 lakh from the present Rs. 10 lakh with partial linkage to DA in line with that for Central Government employees. Further, it has been recommended that funding of gratuity beyond Rs. 10 lakh should be kept outside the ceiling of 30% of Basic Pay + DA. Additional Secretary, D/o Expenditure stated that the recommendation regarding funding of gratuity may be reexamined because gratuity per se is part of existing ceiling being a retirement benefit and hence it may not be appropriate to create two segments for gratuity. Moreover, there is no specific reason given for this recommendation by the 3rd PRC.

(ii) Recommendation The recommendations of 3rd PRC regarding superannuation benefits may be accepted with the modification that funding for the entire amount of gratuity may be met from within the ceiling of 30% of Basic Pay DA.

11. Corpus for Medical and other emergency needs

(i) Secretary, DPE informed that 3″ PRC had recommended that the ceiling for contribution to the corpus for post-retirement medical benefits and other emergency needs for retirees may be enhanced from 1.5°/o of PBT to 3% of PBT. Further, coverage from the corpus may be extended to all retirees instead of the present provision for only pre 1.1.2007 retirees. CoS was of the view that the present ceiling of 1.5% of PBT is sufficient for covering the pre 1.1.2007 retirees. As regards remaining employees, provision for post-retirement medical benefit already exists as part of the stipulated contribution of 30% of Basic Pay + DA for superannuation benefits.

(ii) Recommendation The corpus for post-retirement medical benefits and other emergency needs may be provided for within the existing ceiling of 1.5% of PBT and it may apply only in respect of pre 1.1.2007 retirees. Formulation of suitable schemes in this regard by CPSEs may be ensured by the Administrative Ministries/Departments.

12. House Rent Allowance (HRA) and Leased Accommodation including House Rent Recovery (HRR)

(i) The recommendations of 3rd PRC regarding rates of HRA, HRR and leased accommodation etc. were discussed. Additional Secretary, D/o Expenditure apprised that the recommendations of 7th CPC on HRA for Central Government employees was under consideration and a final view was yet to be taken. CoS was of the view that decision of the Government on the recommendations of the 7th CPC on allowances may be awaited.

(ii) Recommendation: A decision on 3rd PRC’s recommendations regarding HRA, HRR, leased accommodation etc. may be taken by DPE in consultation with Mo Finance along the lines of provisions for Central Government employees after a decision is taken by Government on HRA for Central Government employees. Till then, the existing allowances at the existing rates may continue to be paid at pre-revised pay scales.

13. Deputation, Employee Stock Ownership Plan (ESOP) VRSNSS and healthcare of employees.

(i) Secretary, DPE stated that 3rd PRC has recommended that deputation of employees from one CPSE to another may be allowed in which case the employee would be entitled to pay and allowances as applicable in the parent CPSE. In addition, deputation allowance would also be payable. Further, the same provision would also apply to government officials on deputation to CPSEs, i.e. they would be entitled to pay and allowances as applicable in their parent cadre together with deputation allowance. She further informed that as per extant guidelines, government officers could join posts in CPSEs only on immediate absorption basis except in certain posts. This policy also applies to employees of one CPSE joining other CPSEs regardless of the level of post involved. The executives, who are brought into holding companies from subsidiaries or vice versa on deputation/transfer, will continue to draw their basic pay as drawn in the original company. They will, however, be entitled to draw the allowances and variable pay/performance related pay as applicable to the borrowing CPSE. Secretary, DoPT was of the view that deputationists should have the option to choose between pay of parent cadre plus deputation allowance or pay of the ex-cadre post. Further, the deputationists should get the allowances and other non-pay benefits according to the rules of the borrowing organization.

(ii) Secretary, DPE apprised that the 3rd PRC had also made certain recommendations to improve the performance of CPSEs, inter alia, covering Employee Stock Ownership Plan (ESOP), VRSNSS, and healthcare of employees, etc. She stated that as regards ESOP, 3rd PRC had recommended that DPE may elaborate the mechanism in consultation with Government agencies concerned. This recommendation may be delinked from the processing of the other recommendations of 3rd PRC and may be examined separately. As regards VRSNSS, there are existing guidelines of DPE and recommendations of 3rd PRC on this issue would also need separate examination. Regarding modifications in respect of healthcare facilities for employees recommended by 3rd PRC, CoS observed that most of the CPSEs are already implementing various health schemes and therefore changes in this regard may not be necessary.

(iii) Recommendation 3rd PRC’s recommendations on deputation of officers between CPSEs and of Government officers to CPSEs may not be accepted and the existing guidelines of DPE and DoPT in this regard may continue to apply. As regards recommendations on ESOP and VRSNSS, these may also be examined separately by DPE. Further, modifications recommended by 3rd PRC in respect of healthcare facilities for employees may not be accepted and present provisions may continue in this regard.

14. After detailed deliberations, it was recommended that:

i. 3rd PRC’s recommendations may be accepted except to the extent of modifications recommended in Paras 3 (ii), 6 (ii), 8 (iv), 10 (ii), 11 (ii), 12 (ii) and 13 (iii) above.

ii. The recommendations of 3rd PRC may be implemented from 01.01.2017 (except for allowances as discussed in Paras 8 and 12 above, decision on which will be taken after the Government decision on allowances under 7th CPC)

Click here to view/Download Report of 3rd PRC of CPSE

Source: IRTSA

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Allowances to Central Government Employees – Questions in Parliament

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

Allowances to Government Employees

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

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

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

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Retired Kendriya Vidyalaya teachers demand payment of pending DA

Retired Kendriya Vidyalaya teachers demand payment of pending DA

An association of retired Kendriya Vidyalaya teachers has written to the Centre over the delay in payment of dearness allowance (DA) to them.

The Retired Teachers Welfare Society, which shot off a letter to Prime Minister Narendra Modi, said the DA dues are pending since July 2016.

“We wrote to the prime minister in March and again in April drawing his attention to the issue of non-payment of 7 per cent DA to retired teachers of KVS. The PMO forwarded the letter to the Ministry of Human Resources Development in mid- April, but no action has been taken yet,” the society’s general secretary, C M Dubey, said today.

The letter was sent by the Bhopal chapter of the society.

On recommendations of the Union Cabinet, 7% DA was payable from July 2016 and subsequently 4% from January 2017 to the regular as well as retired employees of the Central government, including KVS teachers, Dubey said.

“The DA is being paid to regular employees, but not to retired ones. This is causing hardship to a large number of retired personnel,” he said.

PTI

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7th Pay Commission Unions leaders to meet officials today for higher allowances

7th Pay Commission Unions leaders to meet officials today for higher allowances

New Delhi: Central government employees unions leaders today is likely to to meet top government officials for higher allowances.

The central government employees now get all allowances except dearness allowance at the old rates until the cabinet approval of higher allowances.

The the Committee on Allowances, headed by Finance Secretary Ashok Lavasa was constituted in June last year after the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances.

The 7th Pay Commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance, which triggered resentment among central government employees that governments complied with formation of the Committee on Allowances.

The Committee on Allowances submitted its report to Finance Minister Arun Jaitley on April 27.

The 7th Pay commission had recommended abolition of or subsuming of allowances like acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing.

It also recommended slashing the House Rent Allowance (HRA) from 30, 20 and 10 per cent to 24, 16 and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The unions leaders of central government employees are pressing hard for immediate cabinet approval of higher allowances.

TST

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Dearness Allowance for Workmen and Officer Employees in banks for the months of May, June and July 2017 under X BPS/ Joint Note dated 25.5.2015

Indian Banks Association
HR & Industrial Relations

No.CIR/HR&IR/761D/2017-18/2625

April 29, 2017

All Members of the Association
(Designated Officers)

Dear Sirs,

Dearness Allowance for Workmen and Officer Employees in banks for the months of May, June and July 2017 under X BPS/ Joint Note dated 25.5.2015

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base1960=100) for the quarter ended March 2017 are as follows:

January 2017 6254.30
February 2017 6254.30
March 2017 6277.12

The average CPI of the above is 6261.91 and accordingly the number of DA slabs is 456 (6261.91-4440 = 1821.91/4= 456 slabs). The last quarterly payment of DA was at 469 slabs. Hence, there is a decrease in DA slabs of 13, i.e. 456 slabs for payment of DA for the quarter May, June and July 2017.

In terms of clause 7 of the 10th Bipartite Settlement dated 25.05.2015 and clause 3 of the Joint Note dated 25.05.2015, the rate of Dearness Allowance payable to workmen and officer employees for the months of May, June and July 2017 shall be 45.60 % of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

Yours faithfully,

S/d,
Chauhan
Senior Vice President

Signed Copy

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4% Additional Dearness Allowance (DA) for Tamilnadu State Government Employees from Jan 2017

4% Additional Dearness Allowance (DA) for Tamilnadu State Government Employees from Jan 2017

4percent-da-tn-govt

The Chief Minister of Tamil Nadu Government today announced a four percent of Dearness Allowance to its employees and pensioners with effect from January 2017.

Today the Chief Minister of Tamil Nadu has declared an another installment of additional 4% Dearness allowance with effect from Jan 2017 to the employees working under Tamil Nadu Government. Following the announcement, the existing percentage 132% is increased to 136% from Jan 2017.

Following the Central Government, the state government has declared DA to its employees from the existing rate of 132% to 136% with effect from 1.7.2016 as per existing basic pay.

Detailed order is awaited.

Be the first to comment - What do you think?  Posted by admin - April 26, 2017 at 6:30 pm

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Family pension to freedom fighters

Family pension to freedom fighters

GOVERNMENT OF INDIA
MINISTRY OF  HOME AFFAIRS
RAJYA SABHA
UNSTARRED QUESTION NO-1502
ANSWERED ON-15.03.2017

Family pension to freedom fighters

1502 . Shri R. Vaithilingam

(a) whether it is a fact that the Centre is giving family pension to the freedom fighters;

(b) if so, the details thereof;

(c) whether Government is considering to revise and increase family pension; and

(d) if so, the details thereof and if not, the reasons therefor?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS (SHRI HANSRAJ GANGARAM AHIR)

(a) to (d): Yes Sir. The Centre is giving family pension to the eligible dependents of the freedom fighter pensioners under Swatantrata Sainik Samman Pension Scheme, 1980, administered by Ministry of Home Affairs. As per the provisions of this Scheme, after death of the freedom fighter pensioner, his/her spouse(widow/widower) and after death of spouse, his/her unmarried & un-employed daughters (up to maximum of three such daughters at any point of time) and thereafter, mother or father of the freedom fighter pensioner are granted dependent family pension.

The freedom fighter pension/family pension has already been revised and increased recently by the Central Government with effect from 15.08.2016. The amount of pension being given under this scheme to different categories of freedom fighters and their dependents are as at Annexure. Dearness Allowance/Relief as given to the Central Government Employees/pensioners has been made applicable to the freedom fighter pensioners also.

Annexure

Monthly Amount of Pension provided under Swatantrata Sainik Samman Pension Scheme, 1980

Sl.No Category of freedom fighters Amount of pension before the enhancement on 15.08.2016 including Dearness Relief (Per Month) Present amount of pension after the enhancement with effect from 15.08.2016(Per Month)
1. Ex-Andaman Political Prisoners/spouses Rs.24,775/- Rs.30,000/-
2. Freedom fighters who suffered outside British India/spouses Rs.23,085/- Rs.28,000/-
3. Other Freedom Fighters/ spouses including INA Rs.21,395/- Rs.26,000/-
4. Dependent parents/eligible daughters (maximum 3 daughters at any point of time) Rs.3,380/-(dependent parents)Rs.5,070/-(daughters) 50% of the sum that would have been admissible to the Freedom Fighter, i.e., in the range of Rs.13,000/- to Rs.15,000/-

Source: RAJYA SABHA Q&A

Be the first to comment - What do you think?  Posted by admin - April 15, 2017 at 10:22 pm

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Rate of Dearness Allowance applicable w.e.f.1.7.2016 and w.e.f.1.1.2017 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scales as per 5th Central Pay Commission

DA Order for Autonomous Bodies pre-revised pay scales as per 5th CPC

No.1/3/2008-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, dated the 7th April, 2017.

OFFICE MEMORANDUM

Subject:- Rate of Dearness Allowance applicable w.e.f.1.7.2016 and w.e.f.1.1.2017 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scales as per 5th Central Pay Commission

The undersigned is directed to refer to this Department’s O.M.of even No. dated 22nd April, 2016 revising the rates of Dearness Allowance w.e.f.01.01.2016 in respect of employees of the Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scales as per 5th Central Pay Commission.

2. The rate of DA admissible to above categories of employees of the Central Government and Central Autonomous Bodies shall be enhanced from the existing rate of 245% to the revised rates as under:

Date from which payable Rate of Dearness Allowance admissible per month
1.7.2016 256% of basic pay
1.1.2017 264% of basic pay

3.The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No. 1(13)/97-E.II(B) dated Yd October, 1997 shall continue to be applicable while regulating Dearness Allowance under these orders.

4. The contents of this Office Memorandum may also be brought to the notice of all organisations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay.

(Nirmala Dev)
Deputy Secretary to the Govt. of India

Original Order Copy

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DA Order from 1.1.2017 to Autonomous Bodies as per 6th Pay Commission

Rate of Dearness Allowance applicable w.e.f.1.1.2017 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th Central Pay Commission

No. 1/3/2008-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, dated the 7th April, 2017.

OFFICE MEMORANDUM

Subject: Rate of Dearness Allowance applicable w.e.f.1.1.2017 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th Central Pay Commission
The undersigned is directed to refer to this Department’s O.M.of even No. dated 9th November, 2016 revising the rates of Dearness Allowance w.e.f.01.07.2016 in respect of employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th Central Pay Commission.

2. The rate of DA admissible to above categories of employees of Central Government and Central Autonomous Bodies shall be enhanced from the existing rate of 132% to 136% w.e.f.1.1.2017.

3. The provisions contained in paras 3,4 and 5 of this Ministry’s O.M.No. 1(3)/2008-E.II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

4. The contents of this Office Memorandum may also be brought to the notice of all organisations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay

(Nirmala Dev)
Deputy Secretary to the Govt. of India

Original Order Copy

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Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2017

Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2017

Grant of Dearness Allowance to Central Government employees

DA Order Jan 2017 – Finmin Released Dearness Allowance Order

No. 1/3/2017-E-II(B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 30th March, 2017.

OFFICE MEMORANDUM

Subject : Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2017.

The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1/2/2016-E-II (B) dated 4th November, 2016 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 2% to 4% of the basic pay with effect from 1st January, 2017.

2. The term ‘basic pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).

4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of Tess than 50 paise may be ignored.

5. The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March, 2017.

6. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

7. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

(Nirmala Dev)
Deputy Secretary to the Government of India

DA Order Jan 2017

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Notification on Dearness allowance (DA) this week

Notification on Dearness allowance (DA) this week

New Delhi: The Central government has announced to release of an additional instalment of 2 per cent of dearness allowance (DA) to central government employees and dearness relief to pensioner with effect from January 1, 2017.

Union Finance Ministry on Monday said that notification in this regard is expected to be issued this week.

The government is to notify its decision to give dearness allowance (DA) and dearness relief (DR) to 4 per cent from existing 2 per cent from January 1, 2017, benefiting 48.85 lakh is employees and 55.51 lakh pensioners.

The Finance Minister Arun Jaitley moved the cabinet note on March 16 for approval of releasing of an additional instalment of 2 per cent of dearness allowance (DA).

The DA/DR has been increased by 2 per cent over the existing rate of 2 per cent of the basic pay/pension to compensate for price rise and it is in accordance with the accepted formula based on the recommendation of 7th 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).

The hike in the DA/DR is as per the agreed methodology of taking average of Consumer Price Index-Industrial Workers for the past 12 months.

The Confederation of Central Government Employees had termed it as a meagre hike in view of actual rise in cost of living index saying the CPI-IW was far from reality.

The union had also said that there was a lot of variation in the rates of price rise of commodities by Ministry of Agriculture and CPI-IW.

TST

Be the first to comment - What do you think?  Posted by admin - March 27, 2017 at 11:52 am

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Most of the Central Government employees feel that the enhancement of DA/DR is meager

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%)
da-calculation-7th-CPC

Source: www.govtenews.com

Be the first to comment - What do you think?  Posted by admin - March 20, 2017 at 7:48 pm

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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

Be the first to comment - What do you think?  Posted by admin - at 8:15 am

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4% of 7th CPC Basic Pay as DA from Jan 2017

4% of 7th CPC Basic Pay as DA from Jan 2017

7thCPC-basicpay-expected-da

“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.

Be the first to comment - What do you think?  Posted by admin - March 18, 2017 at 5:05 pm

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Cabinet approves 2% Dearness Allowance to Central Government Employees and Pensioners

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.

Source: PIB

Be the first to comment - What do you think?  Posted by admin - March 15, 2017 at 10:08 pm

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