Grant of Additional House Rent Allowance to CG Employees - Finmin Order 14.8.2018

Grant of Additional House Rent Allowance to CG Employees - Finmin Order 14.8.2018

Grant of additional HRA to the civilian employees of the Central Government serving in the States of North Eastern Region, Andaman & Nicobar Islands, Lakshadweep Islands and Ladakh

No.28/1/2017-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, dated the 14th August,2018

OFFICE MEMORANDUM

Subject: Grant of additional HRA to the civilian employees of the Central Government serving in the States of North Eastern Region, Andaman & Nicobar Islands, Lakshadweep Islands and Ladakh.

Consequent upon revision of rates of House Rent Allowance (HRA)/additional HRA w.e.f. 01.07.2017 vide this Department’s O.M. No.2/5/2017-E.ll(B) dated 07/07/2017 and O.M. of even number dated 19.07.2017 respectively, it has been decided to grant additional HRA at old duty station w.e.f. 01.07.2017 to all those Central Government civilian employees who have been transferred to North Eastern Region, Andaman & Nicobar Islands, Lakshadweep Islands and Ladakh, prior to 01.07.2017 or after 01.07.2017 and continue to remain posted there after 01.07.2017, as under:-
(i) ln case of civilian employees of Central Government transferred to and posted from a date prior to 01.07.2017 who leave their families behind at the old duty station, the HRA of the old duty station will be calculated on the revised pay drawn on 01.07.2017 with the percentage rates of HRA effective on 01.07.2017 as per 0.M. No. 2/5/2017.E.ll(B) dated 07/07/2017.

(ii) In case of civilian employees of Central Government transferred to and posted from a date on or after 01.07.2017 who leave their families behind at the old duty station, the HRA of the old duty station will be calculated on the revised pay drawn on the date of transfer with the percentage rates of HRA effective on the date of transfer.

2. This is issued with the approval of Secretary (Expenditure)

sd/-
(Nirmala Dev)
Deputy Secretary to the Government of India

Source: https://www.doe.gov.in

Delay in 7th CPC Allowances: Is any compensation on the way

Delay in 7th CPC Allowances: Is any compensation on the way: 

Committee on Allowances has concluded his exercise as the last meeting was held on 6th April, 2017 and the confirmation of the submission of report to Govt. has not yet available from authentic sources. Cabinet Secretary has already assured to JCM that he will put-up the report to the Cabinet for early approval. There is an indication that govt is considering for compensation to Central Government Employees for inordinate delay of implementation of the allowances as per recommendation of Seventh Central Pay Commission.

Source has decoded that the Government is planning to make the announcement for a Compensation on Allowances in lieu of delay in allowances recommended by the 7th Pay Commission. There are so many questions here and also have been analyzed to judge you on this matter.

When the allowances at the new rates will be implemented?
According to the earlier posts of  the Cabinet to adjudge on 7th CPC revised allowances before April 23 and the other hand the RBI is not in the mood to outlaw the govt to implement the revised allowances. Read the full article RBI is not against the HRA hike as per 7th CPC HRA; Analysis.

What is the crucial date of effect of allowances at the rate recommended by 7th Pay Commission and the committee of allowances?
Answer of this question is factual under two sides, first the demand of employees and the second the way of implementation of 7th CPC. The employees and their union are pressing hard on the implementation of revised allowances from the date of implementation of 7th CPC i.e. 01.01.2016. Whether the demand of employees union is illegitimate? Not fully, in view of the timing of constitution of the 7th CPC. The unions are blaming to the committee and the government for the delay.

The delay in implementation of 7th CPC was not from the employees side.
The constitution of the 7th CPC was notified vide the resolution dated 28th of February 2014 under the Chairmanship of Justice Shri Ashok Kumar Mathur, Shri Vivek Rae as full time member and Smt. Meena Aggarwal as Secretary, with the condition to give the report in 18 months. As per initial notification the report was to be submitted in the month of August 2015, but the commission got the extra 3 months for submission of report and finally the commission handed over the report to govt on Nov, 2015 after 3 months. Although, two to four months were enough to complete the other formality for implementation by implementation cell of finance ministry, but govt handed over the all exercise to a empowered committee. Lastly the govt has approved some recommendation of the 7th CPC for implementation to Central Government Employees on 25th July, 2016 after 8 months of receiving of report and the employees was entitled to get the arrears of revised basic pay from 01.01.2016 and new salary from the month of August, 2016.

What will be the effective date of revised allowance from 01.01.2016 or 01.08.2016 or the month after the approval of report of allowances committee?
As the employees union are demanding the effective date of allowances from 01.01.2016, is seems hard to be accepted by the govt. We knows the allowance in 6th CPC and previous CPCs were also not implemented retrospectively as the revised basic pay means the allowances were given from the date of approval/implementation of revised pay as per respective CPC.

Hence it is easily interpreted that the revised allowances will not be given from the date of revision of Basic Pay in 7th CPC i.e. 01.01.2016. Now the question arise here, what about the date of approval/implementation of 7th CPC to Central Government Employee by the Govt. Perhaps, the date can be 01st August, 2016. The all the facts says that the employees are eligible to get the revised/enhanced allowances from the date of approval of the 7th CPC as the withheld decision in the formulation of a committee by fully from the Govt. side. As the employee unions were objected on many issues like minimum pay, advances, allowances etc. but govt delayed only the allowances.

Whether govt will revised the allowances with retrospective effect?
To find the answer of the above question, the pay and allowances as per the 7th CPC norms should be analyzed as a summary. Here the lowest pay scale is taken to understand the difference between 6th CPC & 7th CPC Pay:-

The lowest Pay Scale was in the 6th CPC = PB 1 (5200-20200) & Grade Pay 1800
The employee in this scale was getting the following prior the 7th CPC on 01.01.2016 -

Basic Pay: Rs. 5200 + Grade Pay 1800 = Rs. 7000
(The pay for newly appointee was differ)
DA on 01.01.2016 = Rs. 8330
For X Group City
HRA - 2100
Tpt All - 600 + 714 = Rs. 1314
Total Gross Salary = 17430
The employee in this scale was eligible in the 7th CPC with effect from 01.01.2016 -
Basic Pay = Rs. 18000
HRA = Rs. 4320 and Tpt = 1350

Now
Difference in Basic Pay is Rs. 2670
Difference in Allowance (HRA only) is Rs. Rs.2220

As per above illustration the difference of revised basic pay and revised allowance (HRA) is nearly 85%. Means govt has saved 85% corpus of expenditure in enhancement of pay and allowances of Central Government Employee by delaying the approval of allowances. By this central government employees was loosing this amount since August, 2016. Hence it is also instituted that Govt employees are eligible for a compensation in situation of not getting the revised allowance from the date of implementation of 7th CPC i.e. August, 2016.

Union demand of revised allowance from 01.01.2016 may be persuaded by the compensation
As per sources indicated that the Committee to check the 7th CPC recommendation on allowances has given the importance the union demand to give the enhanced allowances from the date of 01.01.2016. A positive note given by the committee as per suggestion to the govt. to compensate the employees for the delay in decision regarding allowances. The sources has also indicated that the compensation will be given as monthly rate from Jan, 2016 or August, 2016 upto the date of approval/decision given by govt on revised allowances.

Conclusion: It is the matter of future that what, how much and when the revised allowances will be given to the Govt. employees? But it is fact that employees are eligible for the revised allowances from the August, 2016 and either the allowances must be given retrospectively or as compensation. Which type of days will coming to the Central Government Employees after a loss of revised allowances for 9 months and how the govt makes it as "Achhe Din" to their Govt employees or govt is following their logo "Sabka Saath Sabka Vikaas".

Via: Paramnews.com

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

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

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

Yesterday RBI has issued its First Bi-monthly Monetary Policy Statement for 2017-18. 7CPC has analyzed this report in view of early approval of allowances committee. This report has stated that the Seventh Pay Commission recommendations will not upset fiscal maths as additional expenditures will be offset by either surplus revenues or expenditure cuts. Accordingly, a view has been expressed, this time too RBI seems neutral on prohibiting to hike the allowances specially House Rent Allowances.

HERE ARE TWO QUESTIONS TO BE POINTED OUT

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

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

As per RBI Projected Monetary Policy Report April 2016:-

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

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

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

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

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

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

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

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

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

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

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

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

But the questions remain here:-

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

Via: 7CPC.in

7th CPC HRA : Allowance Committee Meeting Proposal for House Rent Allowance

7th CPC HRA : Allowance Committee Meeting Proposal for House Rent Allowance

Sources said that the Allowance Committee Meeting has finalized a proposal on HRA. It will be finalized in the Meeting held on 25th October 2016. It is said that the proposed Meeting under the Chairmanship of DOPT Secretary (P) with the Secretary Staff Side, NC (JCM) is to firm up the view on various allowances pertaining to Department of Personnel & Training.

This Meeting is conducted as per the decision of Allowance Committee Meeting held on 1-9-2016. The meeting to finalize the allowances pertaining to DOPT has been scheduled to be held on 25th October 2016.

The Reliable Sources said that the Official Side are in the view of increasing HRA by 1 Stage to reach 30% , 20% and 10% .

The pay Commission recommended HRA at the rates initially from 24%, 16%, and 8 % and whenever DA reaches 50% it will be increased to 27%, 18% and 9% and Finally after DA reaches 100% the HRA will be revised to 30% , 20% and 10% for X,Y and Z cities respectively.

The NCJCM has demanded in its Memorandum submitted to the 7th Pay Commission that 60%, 40% and 20% HRA to be recommended for X,Y and Z cities.

The Pay Commission totally ignored this demand and recommended reduction of rates from Sixth CPC. Since it is Co related with DA , it will be increased after two stages to 30%, 20% and 10% after DA reaches 50% and 100%.

The sources said that now it is proposed to start the HRA rates initially from 27%, 18% and 9% and after DA reaches 50% the House Rent Allowance will be revised to 30%, 20% and 10% for X,Y and Z cities respectively.

Source : govtstaffnews.in

Latest Development on 7th CPC recommendations

Latest Development on 7th CPC recommendations

NJCA
National Joint Council of Action
4, State Entry Road New Delhi-110055
Ph: 011-23365912, 23343493, Fax: 23363167
No.NJCA/2016

Dated May 27, 2016

All Constituent Organisations,
National Council (JCM)

Dear Comrades,

As there had been no response from the Government to our communication dated 2nd May, 2016, we decided to seek an appointment with the Cabinet Secretary. Accordingly a delegation consisting of the following members of the NJCA met Cabinet Secretary, Shrl P.K. Sinha on 26. May 2016.

Com. Shiva Gopal Misra Com.
Guman Singh
Corn. K.K.N. Rutty

From the discussions, it appears that, the Empowered Committee has made up their mind to recommend to the Government a slight increase in the Minimum Wage. No indication was however given as to the consequential revision of the Fitment Formula and Pay Matrix. There had also not been any hint about the need to restore the percentage of the HRA, which the 7th CPC has recommended for reduction. On Advances and Allowances, abolished, the Government might be advised to setup a committee to go into the matter and make suggestions. In the matter of the New Contributory Pension Scheme also, the Government might refer the demand to a committee.

On the question of pension benefit to the retired personnel, who are covered by the defined benefit pension scheme, the Cabinet secretary indicated that, both the Department of Pension and Defence Ministry were of the firm view that the first option recommended by the 7th CPC to bring about the parity with the past pensioners being infeasible and impracticable (due to the non-availability of the requisite records) might not be accepted and acted upon.

Surprised over this development, the delegation requested for an official formal meeting of the Standing Committee so that the considered views of the Staff Side could be presented. The delegation informed to the Cabinet Secretary that, non-acceptance of the recommendation of the 7th CPC in the case of pensioners will be extremely disappointing for them and will give rise to avoidable discontent. The Cabinet Secretary suggested to the Staff Side to reach out to the Department of Pension and Ministry of Defence in’ the matter. So far he is concerned; he is an open minded on this subject, provided it is workable.

The National JCA will meet on 3rd June 2016 at New Delhi to consider these developments and take appropriate decision.

Grant of HRA at a higher rate (“B” Category) to the Central Government Servants Posted at Aizawl (Mizoram) – Court Case regarding

Grant of HRA at a higher rate (“B” Category) to the Central Government Servants Posted at Aizawl (Mizoram) – Court Case regarding

RD570050807IN

COURT-CASE
MOST URGENT

F.No.4-23/2000-PAP
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATION & IT
DEPARTMENT OF POSTS
(ESTABLISHMENT DIVISION)/P.A.P.SECTION
DAK BHAWAN, SANSAD MARG, NEW DELHI – 110 001

DATED, THE 01ST MARCH, 2016.

TO

The Chief Post Master General
N.E.Postal Circle
Shillong – 793001

ORDER

Subject: Grant of HRA at a higher rate (‘B’ Category) to the Central Government Servants Posted at Aizawl (Mizoram) – Court Case regarding.

Central Government Employees Federation of Mizoram, General Head Quarters, Aizawl, Mizoram made a representation to the Hon’ble Prime Minister of India claiming House Rent Allowance at “B” Class City rates and Compensation in lieu of Rent Free Accommodation at the rate of 10% to the Central Government Employees Posted in Mizoram State based on the judgement passed by Supreme court of India in Civil Appeal No.2715/91-Union of India & Ors V/s Shri S.K.Ghosh & Others and Department of Posts Order No.8-40/87-PAP dated 7.3.1994 & No.4-52/98-PAP dated 27.02.1999. On rejection of their claim, the Central Government Employees posted in the State of Mizoram approached the Central Administrative Tribunal, Guwahati under O.A.No.381/2000. The Hon’ble CAT, in Para -5 of its order dated 12.04.2002 pronounced as under:-

“In view of the position enumerated above,I am of the-view that the applicants are entitled to House Rent Allowance at the rate prescribed for B class cities to the Central Government Employees which should be payable to the applicants at the rate of 15% from 1.1.1986 to 30.9.1986 and from 1.10.86 to 30.9.1986 and from 1.10.86 to 30.9.86 and from 1.10.1986 at flat rate prescribed under O.M.dated 7.8.1987 read with another O.M.dated 13.11.1987 and the Notification GSR No.623 (E) amending the Fundamental Rule 45 A with effect from 1.7.1987.

As regards the claim for compensation in lieu of Rent Free Accommodation the respondents are to act in conformity with the Office Memorandum No.12-11/60-ACC-I dated 2.8.1960,O.M.dated 23.2.1986 and 22.5.1987 and also to O.M.dated 13.11.1987. The respondents shall examine the each case on merits and thereafter shall pass necessary order in individual cases. Rent free unfurnished accommodation is admissible to Central Government Employees having all India transfer liability only those who are posted in Mizoram or HRA at the rate prescribed from time to time. Compensation and admissible HRA shall be granted to those persons who are entitled to rent free accommodation and could not be provided accommodation and the above benefit shall be granted only to the Central Government employees having all India Transfer liability and Posted in Mizoram vide letter No.11015/1/E/(B)/76 dated 31.7.1977. The respondents shall examine the individual cases and thereafter pass necessary orders in those Cases, others will not be eligible for the same.The application is allowed in part, No Costs”.

2. The Department filed WP No.2955/2003 in the Hon’ble High Court of Guwahati against the orders of the CAT dated 12.04.2002. The Hon’ble High court in its judgment dated 25.4.2003, “disposed of the appeal with the observations that the directions given by the Learned Tribunal in the last part of the judgment quoted above shall be complied with by the Central Government after taking due consideration of the observations recorded within a period of 6 Months. The High court observed that the case of each and every Central Government employee posted in the state of Mizoram will have to be taken separately and appropriate orders shall be passed thereon after such consideration in terms of OM dated 23.09.86, 19.03.87 and 13.11.87. The Hon’ble High court, however, observed that the employees posted in Aizawl Headquarters of the State of Mizoram being a “C”Class city may not be entitled to HRA as prescribed for “B” class cities.”

3. Aggrieved by the order of the Hon’ble High Court of Guwahati, the Central Government Employees filed a civil appeal No.646/2005 in the Supreme Court of India. The Supreme court stayed the operation of the judgment order dated 25.04.2003 of the high court of Guwahati in WP No.2955/2003. The Honble supreme Court of India has dismissed the civil appeal and passed the orders dated 17.07.2013 as under:-

“We have thoughtfully considered the submissions of the learned counsel. In our view, the direction given by the Tribunal, which has been confirmed by the High Court, merely ordains consideration of the cases of each employee for grant of City compensatory Allowance in accordance with O.M. dated 02.08.1960, O.M. dated 23.02.1986 and 2.5.1987 as also O.M.dated 13.11.1987 and nothing more. Therefore, the impugned order as also the one passed by the Tribunal do not call for interference by this court under Article 136 of the Constitution.

With the above observation, the appeal is dismissed.

However, it is made clear that if the Government of India has issued fresh instructions after 13.11.1987 then the cases of the respondents shall be considered in accordance with the latest instructions.”

4. Consequent upon obtaining the concurrence of Integrated Finance Wing of this Department, the, matter was referred to Ministry of Finance, Department of Expenditure for decision.

5. Ministry of Finance, Department of Expenditure has considered the matter and accorded their approval in view of the decision taken by the Department of Posts to not to file any Review petition in the matter and as the Ministry of Law & Justice has advised Department of Posts to take administrative decision for implementation of the said order of Hon’ble Tribunal, implementation of the Order dated 12.04.2002 passed by the Hon’ble CAT, Guwahati Bench in O.A.No.381/2000 for grant of House Rent Allowance at “B/Y” class cities rates, as admissible from time to time, is agreed to.

6. Since, the Department of Posts had represented the Union of India on behalf of all the respondents Ministries/Departments/Offices, the approval accorded by the Department of Expenditure, Ministry of Finance is therefore conveyed to all the Respondent Ministries/Departments/Offices for issuing appropriate instructions for compliance of orders dated 12.04.2002 of Hon’ble CAT, Guwahati Bench in respect of the employees working under their administrative control who were/are applicants in the said OA No.381/2000.

7. This has the approval of the Competent Authority.

sd/-
(K.V.Vijayakumar)
Assistant Director General (Estt.)

Source: http://aipeup3bbsr.blogspot.in/