7th Pay Commission recommendations were implemented & NPS has been liberalized said by Shri Goyal

PIB: 7th Pay Commission recommendations were implemented & NPS has been liberalized said by Shri Goyal

Press Information Bureau
Government of India
Ministry of Finance

01-February-2019

Highest Ever Growth Of 42% Recorded in Minimum Wages of Labours during last 5 years

During the last 5 years, the minimum wages of labours of all classes have been increased by 42% which is the highest increase so far. While presenting the Interim Budget 2019-20 in Parliament today, the Union Minister for Finance, Corporate Affairs, Railways and Coal, Shri Piyush Goyal said that the high growth and formalistation of the economy has led to the expansion of employment opportunities as shown in EPFO membership, which has increased by nearly 2 crore in 2 years reflecting formalisation of the economy and job creations.

Shri Goyal said that the 7th Pay Commission recommendations were implemented and New Pension Scheme (NPS) has been liberalized. The Government’s contribution in NPS had been increased 10% to 14%. The limit of gratuity payment has been increased from Rs. 10 lakh to Rs. 20 lakh. The limit of eligibility cover of ESIC has been increased from Rs. 15,000 per month to Rs. 21,000 per month. The minimum pension for all labours has been fixed at Rs. 1,000 per month. In case of the death of a labour during the service, the EPFO contribution has been increased from Rs. 2.5 lakh to Rs. 6 lakh. The honorarium of all classes of labours under Anganwadi and Asha scheme has been increased by about 50%.

Source: PIB

Grant of Advances - Seventh Central Pay Commission recommendations - Discontinuance of Natural Calamity Advance

Grant of Advances - Seventh Central Pay Commission recommendations - Discontinuance of Natural Calamity Advance. 

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No.E(G) 2017 / AD 1-1

RBE No. 52/2017

New Delhi, dated 30.05.2017

The General Managers & FA&CAOs,
All Indian Railways &
Production Units etc.
(as per standard mailing list)

Sub: Grant of Advances - Seventh Central Pay Commission recommendations - Discontinuance of Natural Calamity Advance.

The Seventh Central Pay Commission vide Para 9.1.4 had recommended that all the interest-free advances being granted to the Central Government employees should be abolished. The Government's decision in this regard has been conveyed by the Ministry of Finance vide their OM No.12(1)E.II(A)/2016 dated 07.10.2016. According to the instructions contained therein, the Natural Calamity Advance in addition to six other advances has been abolished.

2.The Government's decision in respect of abolition of advance of Natural Calamity Advance has been considered by the Ministry of Railways in consultation with Finance Directorate. It has been decided to abolish Natural Calamity advance w.e.f. 07.10.2016. The cases where the advances have already been sanctioned need not be reopened.

3.The provisions in respect of Natural Calamity Advance are contained in paras 1123 and 1123(A) of Indian Railway Establishment Manual (IREM) Volume-I. In view of the above, it is directed that paras 1123 and 1123 (A) of IREM may be amended as in the enclosed Advance Correction Slip No.238.

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

5.Please acknowledge receipt.
DA: Correction Slip.

S/d,
(D.Joseph)
Dy.Dir./E(G) III
Railway Board

ADVANCE CORRECTION SLIP TO THE INDIAN RAILWAY ESTABLISHMENT

MANUAL VOLUME-I

Advance Correction Slip No.238.

The following amendments may be made to Para 1123 and 1123(A) of the Indian Railway Establishment Manual, Volume-I

Para 1123 and 1123(A) may be substituted as under:
Para 1123 and 1123(A) Natural Calamity Advance
The provisions stand deleted as the advance in this regard has been abolished by the Seventh Pay Commission.
(Authority : Railway Board's letter No.E(G)2017/AD 1-1 dated 30/05/2017)

Source: NFIR

Central Government Employees not to go on strike on May 23 over 7th Pay Commission allowances

Central Government Employees not to go on strike on May 23 over 7th Pay Commission allowances

New Delhi: Central government employees' will not to go on strike on May 23 in protest at the "government inaction" on fulfilling their demands, including hike in allowance as per the 7th Pay Commission recommendations.

No central government office will be closed at any part of the country and the trains will also be running on May 23.

The Confederation of central government employees, has temporarily postponed the strike scheduled on May 23 following assurance of government to hike allowances shortly.

"The strike has been put on hold for now following the assurance of government. However, the confederation will make sure that the genuine demands of the employees are met with," a top leader of confederation, who did not wish to be named told us.

"In view of government's assurance to hike allowances shortly, our strike on May 23 stands deferred," he added.

The Confederation of central government employees had given the strike call protesting against the delay in allowance hike as per the revised 7th Pay Commission recommendations.

The confederation is opposed to the government's delaying tactics to hike allowances of central government employee.

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

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 had submitted its report to Finance Minister Arun Jaitley on April 27.
The report is being currently examined by the Department of Expenditure. It will be placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th Pay Commission recommendations and to firm up the proposal for approval of the Cabinet.

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

Modification in the definition of anomaly - DoPT Orders

Modification in the definition of anomaly - DoPT Orders 
Setting up of Anomaly Committee to settle the anomalies arising out of the implementation of the Seventh Pay Commissions recommendations.

No.11/2/2016-JCA
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training
Establishment JCA Section

North Block, New Delhi
Dated the 20th February, 2017

OFFICE MEMORANDUM

Subject: Setting up of Anomaly Committee to settle the anomalies arising out of the implementation of the Seventh Pay Commission's recommendations.

The undersigned is directed to refer to DoPT’s OM of even number dated 16/8/2016 and to incorporate the following modification in the definition of anomaly:

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

2. With the incorporation of the above para in the O.M., the definition of anomaly will read as follows:
(1) Definition of Anomaly
Anomaly will include the following cases;

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

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

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

3. The rest of the content of the O.M. dated 16.08.2016 shall remain unchanged.

sd/-
(D.K.Sengupta)
Deputy Secretary (JCA)

Click to view the order
Authority: http://dopt.gov.in/

7th Pay Commission - Govt Still thinking will it be feasible - about over higher Allowances

7th Pay Commission - Govt Still thinking will it be feasible - about over higher Allowances


The Finance Ministry official involved with the process of higher allowances on condition of anonymity, told that the Govt is facing the classic dilemma on the subject of issuing of notification of higher allowances under 7th pay commission recommendations.

“The October-November month is the scheduled for issuing notification for the Finance Ministry, but the time was extended by 2 months because the cash crunch on account of demonetisation, which is taking time to get normality.

“The Finance Ministry has got 2 months extension to issue the higher allowances notification under 7th Pay Commission recommendations”, a Finance Ministry official said on condition of anonymity.

Therefor,unless the banks can begin to function with a modicum of efficiency, the government will not issue notification on higher allowances to save demonetisation chaos,” the sources added.


The sources further added “the issue of increased financial activities after demonetisation compels the govt to keep in abeyance to issue higher allowances notification for getting normalized the position and it is likely to issue from January next, after the the cash crunch will ease. (‘Hopefully’).

As the demonetisation drive today completes 30 days, cash situation continues to stay critical in the country as evident by the unending queues outside banks and a few operational ATMs.

“The government dilemma in relation to issuing higher allowances notification will make to force central government employees to stand in long queues,” the official said. “That is the dilemma, the government is trying to work through.”

“The committee on Allowances has finalized the proposal on the allowances but the government is not interested to do it now,” an official said. “The government will decide to review all situation in respect of cash crunch, the Finance Minister Arun Jaitley is looking at all situations to normalize cash crunch, only then he will receive report on higher allowances.” sources added.

However, the committee on allowances head by Finance Secretary Ashok Lavasa said in October, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”

January Salary Of Central Employees To Follow Higher Allowances: Finance Ministry

January Salary Of Central Employees To Follow Higher Allowances: Finance Ministry

Report says that a top official of the finance ministry today told on condition of anonymity that Central government employees salaries for January will be in line with the higher allowances.

When asked whether the arrears would be paid too, he said, "This depends on the cabinet. If the cabinet gives the nod higher allowances with retrospective effect from August 2016, the arrears will be paid."

"The government faces severe attack for cash crunch because of demonetisation. But the situation will return to normalcy after the deadline of December 30 for deposit of invalid Rs 500 and Rs 1,000 notes."

He added, "It's better if delayed till sufficient cash is available with the banks."

The government in June approved the 7th Pay Commission recommendations for its employees with higher basic pay, which has been paid with arrears, effective from January 1, 2016 but the hike in allowances other than dearness allowance referred to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination as as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Until acceptance of higher allowances, existing allowances are to be paid according to the 6th Pay Commission recommendations, says an earlier official statement issued by the finance ministry.
However, the committee on allowances head Finance Secretary Ashok Lavasa said recently, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."

Source: tkbsen.in

Spike in bank deposits in September due to 7th Pay Commission arrears: FM

Spike in bank deposits in September due to 7th Pay Commission arrears: FM

New Delhi: Union Finance Minister Arun Jaitley on Saturday said there was a spike in bank deposits only in September during the last one year, largely due to the 7th Pay Commission arrears being released in August.
The FM was addressing a press conference here on the current demonetization move.

The 4.8 million central government employees and 5.2 million pensioners got theirs arrears of basic pay and pension arising from implementation of the 7th Pay Commission recommendations in one go in August salaries and pension respectively. The hike in basic pay and pension has been made effective from January 1, 2016.

Jaitley said it is a massive operation to replace 86 per cent of currency under circulation. The SBI alone had done Rs 2.28 crore transactions in the past two days; the total banking transactions were around five times of that, he added.

The minister said the SBI alone had got Rs 47,868 crore deposits in the past two days; total deposits in all the banks must be around Rs 2 lakh crore to Rs 2.25 lakh crore, he added.

The RBI bank currency chests numbering 4,000 had enough currency stocks, Jaitley assured.

The Finance Minister appealed to the people to stagger depositing the defunct currency and not to crowd the banks.

He said it would take two to three weeks to re-calibrate two lakh ATMs to vend out new Rs 2,000 and Rs 500 notes.

He said stock details had been sought from jewellers on reports of dealings in defunct currency, adding that the government would not allow any illegal transaction in bullion.

He said the supposed chip in the Rs 2,000 note and digital lockers were mere rumours.

Inputs with PTI

Seventh Pay Commission recommendations Setting up of Anomaly Committee of settle the Anomalies arising out of the implementation of the Seventh Pay Commissions recommendations

No.11/2/2016-JCA
Government of India
Ministry of Personnel, Public Grievances and pensions
Department of Personnel & Training
JCA Section

*************

North Block, New Delhi
Dated the 16th August, 2016

OFFICE MEMORANDUM

Subject: Setting up of Anomaly Committee to settle the Anomalies arising out of the implementation of the Seventh Pay Commission's recommendations.

The undersigned is directed to say that it has been decided that Anomaly Committees should be set up, consisting of representatives of the Officials Side and the Staff Side to settle the anomalies arising out of the implementation of the 7th Pay Commission's recommendations, subject to the following conditions, namely:

(1) Definition of Anomaly

Anomaly will include the following cases:

(a) where the Official Side and the Staff Side are of the opinion that any
recommendation is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the Commission assigning any
reason; and
(b) where the maximum of the Level in the Pay Matrix corresponding to the applicable Grade Pay in the Pay Band under the pre-revised structure, as notified vide CCS (RP) Rules 2016, is less than the amount an employee is entitled to be fixed at, as per the formula for fixation of pay contained in the said Rules".

(2) Composition:
There will be two levels of Anomaly Committees, National and Departmental, consisting of representatives of the Official Side and the Staff Side of the National Council and the Departmental Council respectively.

(3) The Departmental Anomaly Committee may be chaired by the Additional Secretary (Admn.) or the Joint Secretary (Admn.), if there is no post of Additional Secretary (Admn.). Financial Adviser of the Ministry / Department shall be one of the Member of the Departmental Anomaly Committee.

(4) The National Anomaly Committee will deal with anomalies common to two or more Departments and in respect of common categories of employees. The Departmental Anomaly Committee will deal with anomalies pertaining exclusively to the Department concerned and having no repercussions on the employees of another Ministry / Department in the opinion of the Financial Adviser.

(5) The Anomaly Committee shall receive anomalies through Secretary, Staff Side of respective Council upto six months from the date of its constitution and it will finally dispose of all the anomalies within a period of one year from the date of its  constitution. Any recommendations of the Anomaly Committee to resolve the anomaly shall be subject to the approval of the Government.

(6) Cases where there is a dispute about the definition of "anomaly" and those where there is a disagreement between the Staff Side and the Official Side on the anomaly will be referred to and "Arbitrator" to be appointed out of a panel of names proposed by the two sides. However, this arbitration will not be a part of the JCM Scheme.

(7) The Arbitrator so appointed shall consider the disputed cases arising in the Anomaly Committees at the National as well as Department level.

(8) Orders regarding appointment of the Arbitrator and constitution of Anomaly Committee at National Level will be issued separately.

All Ministries / Departments are accordingly requested to take urgent action to set up the Anomaly Committees for settlement of anomalies arising out of implementation of the 7th Pay Commission's recommendations, as stipulated above.

(G. Srinivasan)
Deputy Secretary (JCA)

DoPT order

7th Pay Commission latest news: Gratuity limit increased to Rs 20 lakh from Rs 10 lakh

7th Pay Commission latest news: Gratuity limit increased to Rs 20 lakh from Rs 10 lakh

The Central Government has unanimously increased the gratuity limit of more than 47 lakh employees to Rs 20 lakh from Rs 10 lakh. This news brings a smile on Central Government employees as they will get more money for their retirement and will also help them to shape their future plan in a much organised way. Under the 7th Pay Commission, IAS officers to peons all will get enhanced salaries with arrears on September 1. The Narendra Modi government has not yet decided to increase salaries of 14 lakh strong armed forces.

The implementation of 7th Pay Commission is a burden of Rs 1.02 lakh crore on Indian exchequer. Experts believe that Indian economy has been showing “bright” near-term prospects, but reducing fiscal deficit to 3.5% of GDP in 2016-17 is a challenge because of additional liabilities on account of pay revision.

After the Central Government employees union had threatened to carry out an indefinite strike, Centre had set up a high-level committee, comprising of Health, Defence and Home Secretaries. The committee will also look into the demands made by National Joint Action Committee (NJAC) which wants the minimum salary to be scaled up to Rs 26,000, rather than Rs 18,000, which has been currently proposed.

On June 29, the 7th Pay Commission recommendations were accepted by Union Cabinet. Although the basic salary was hiked by 14.3 per cent, the hike in allowances was withheld due to the various anomalies.
Meanwhile, reports suggest that the government employees would also be paid arrears in one-time installment through their salaries in the upcoming months.

Source : India.com

7th Pay Commission: Millions to get better pensions

7th Pay Commission: Millions to get better pensions

New Delhi: Millions of retired central government employees will be able to get better pensions under the new pension rules have been made on 7th Pay Commission recommendations.

This new pension rules should cheer retired employees. They will get a higher pension packet and arrears from this month from exchequer with the centre issuing on Thursday the Resolution and Office Memorandums the F.No 38/37/2016-P&PW(A)(i) and the F.No.38/37/2016-P&PW(A)(ii) respectively.
The revised pensions are higher than what the get now.

Although the move benefits the cross-section of retired employees, those in higher brackets have gained more in real terms. New pensions for defence and railway personnel will be notified separately.

Older pensioners have an added reason to rejoice. Those over 80 years will get an additional 20% of their basic pension. This goes up by 30%, 40%, 50% and 100% for those over 85, 90 95, and 100 respectively.
To get an idea of the quantum of hike, a person with a basic pension of Rs 12,600 — who used to get Rs 28,350 (with Dearness allowance 125%) in hand — will now receive a total pension of Rs 32,382. The new rates are effective from January 2016 and the arrears will be given out in one installment during this month.
The maximum gratuity too has been revised to Rs 20 lakh, up from the earlier Rs 10 lakh. The ceiling on gratuity will increase by 25 per cent whenever the dearness allowance rises by 50 per cent of the basic pay.
A payment of Rs 25 lakh, from existing Rs 10 lakh, will be given to the next of kin in case of death occurring due to accidents in course of performance of duties and those attributed to acts of violence by terrorists, anti social elements etc.

GOLDEN SMILES

• Minimum pension Rs Rs 9,000, up from earlier Rs 7,875 (with Dearness allowance 125%) in hand (revised pension to be effective from January 1, 2016). 
• Maximum pension Rs 1,25,000, up from Rs 1,01,250 (with Dearness allowance 125%). 
• Maximum gratuity up to Rs 20 lakh (depending on years of service and last salary drawn). 
• The ceiling on gratuity will increase by 25% whenever the dearness allowance rises by 50% of the basic pay. 
• Incremental additional pension for those 80 years and above. People over 100 to get double pension.

7th pay commission arrears not to push up car, house sales

7th pay commission arrears not to push up car, house sales

New Delhi: Car and house sales are not expected to go up after giving the seven months’ arrears of the 7th Pay Commission recommendations to central government employees on August 31.

As per the notification and resolution, central government employees will receive an average 14.27 per cent hike in basic pay effective from January 1, 2016.

The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

The hype around the 7th Pay Commission recommendations is completely unnecessary, as the real impact is going to be much lesser both in absolute and relative terms compared with the previous 6th Pay Commission. As such, the employees can’t spend more to buy a car or a house.

7th pay commission arrears, its nothing more than peanut for lower and middle level employees. A middle level employee will take home the 7th pay commission arrears that may range from Rs 40,000 to Rs 80,000 on August 31.

How can he purchase a car? With the take arrears salary of Rs 40,000, getting a car loan of Rs 4 lakh is a big deal for an employee. The employee has to bring in margin money to the tune of 15 per cent to 30 per cent of the loan amount, depending on banks.

So, an employee, who is to get arrears Rs 40,000, he will have to pay Rs 80,000, the margin amount for a car loan, which is 20 per cent of a car of Rs 4 lakh. It seems impossible for him to pay the margin money upfront.

Over 80 percent central government employees are working in middle and lower level rungs.

So, bankers say that the 7th pay commission arrears effect on retail lending will be a little.

The last such comprehensive hike in salaries did lead to a sharp increase in consumer spending. House, car and two-wheeler sales, for instance, recorded a sharp surge shortly after the sixth pay panel payouts.

The sixth pay commission report was submitted in 2008, with the higher salaries coming into effect retrospectively from January 1, 2006.

It entitled government employees to huge arrears, a part of which was spent on margin money for buying cars and houses.

The Finance ministry Office Memorandum No.1-5/2016-IC said on Friday, “The 7th Pay Commission arrears shall be paid in cash in one installment along with the payment of salary for the month of August 2016.”

Accordingly, The government’s overall arrears payout will be lower because of only seven months arrears this time, compared to the previous pay commission, which came in late.

It may be recalled that a month ago, Finance Minister Arun Jaitley had “congratulated” central government employees after the Union Cabinet accorded its approval to the 7th pay commission recommendations.

7th CPC arrears to be paid in single installment along with the payment Of salary for the month Of Aug, 2016

7th CPC arrears to be paid in single installment along with the payment Of salary for the month Of Aug, 2016

New Delhi: Government has decided to pay its employees arrears arising from implementation of the 7th Pay Commission recommendations in one go in August salaries.

The government has already notified the 2.57-time hike in basic salary of one crore central government employees and pensioners as per the 7th Pay Commission recommendations. The pay hike has been made effective from January 1, 2016.

In an instruction, the Finance Ministry also said that the revised pay structure effective from January 1, 2016, would include the Dearness Allowance of 125 per cent provided in the pre-revised pay structure. The rate of the first installment of DA under revised pay will be announced later.

“The arrears as accruing on account of revised pay consequent upon fixation of pay under CCS (RP) Rules, 2016 with effect from January 1, 2016, shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, after making necessary adjustment on account of GPF and NPS, as applicable, in view of the revised pay,” said the Finance ministry Office Memorandum
No.1-5/2016-IC today.

In order to expedite disbursal of arrears, the instructions said the “arrear claims may be paid without pre-check of the fixation of pay in the revised scales of pay.”

However, it added, that the facilities to disburse arrears without pre-check of fixation of pay will not be available for those public servants who have retired, resigned or dismissed after the date of implementation of the Pay Commission recommendations.

The minimum pay in central government with effect from January 1, 2016 will now be Rs 18,000 per month, up form Rs 7,000 per month. At the highest level of Cabinet Secretary, the salary would go up from Rs 90,000 a month to Rs 2.5 lakh.

There shall be two dates for grant of increment – January 1 and July 1 every year – instead of the existing July 1 only.

The instruction further said that Income Tax would be deducted before payment of arrears.

PTI

7th CPC recommendations will have no impact on the fiscal deficit in the current fiscal year

7th CPC recommendations will have no impact on the fiscal deficit in the current fiscal year

The implementation of the 7th Pay Commission’s recommendations will have no impact on the fiscal deficit in the current fiscal, as budgetary provisions are enough to meet the estimated outgo of Rs 60,400 crore in FY17, a senior official said.

With the government broadly accepting the pay- and pension-related recommendations of the Pay panel, over one crore central government staffers and pensioners will get an additional Rs 84,933 crore as recompense in FY17.

A finance ministry official on condition of anonymity said that while Budget FY17 did not provide any explicit provision for the Pay panel, some Rs 53,500 crore was built into the allocations to various ministries and Rs 20,500 crore in the rail budget.

“Most of the outgo related to general budget has been provided for in the Budget. Only a small amount (Rs 6,900 crore) will be required, which would be met from savings during the year from budget allocations (for various departments),” the official said. He, however, did not specify if these savings meant cuts in capital spending.

Every year, the government makes some savings due to the inability of many departments to spend their allocated budget. These savings are often reallocated to needy departments. The total spending budget for FY17 is Rs 19.78 lakh crore.

The Centre has set a target to bring down fiscal deficit to 3.5% of GDP in FY17, from 3.9% in FY16. Sources indicated that the tax revenue increase due to Pay panel award had been factored in when the Budget was made.

Separately, the railways will have to find another Rs 4,000 crore to meet the gap in budget provision for pay and salary revisions in FY17. It has provided for Rs 20,500 crore in this year’s rail budget for salary hike.

The total impact on account of revision in pay, allowances and pension would have been more, had the Centre accepted the recommendations related to allowances along with pay and pension in one go.

The Pay Commission’s recommendation for a 63% rise in allowances (which would have inflated the Centre’s and railways’ outgo by Rs 29,300 crore) has been put on hold until a finance secretary-led committee reviews this along with the commission’s suggestions for an overhaul of the 196-odd such benefits.

The committee will submit its report in four months (by October). Officials don’t anticipate any significant additional outgo on account of allowances this year as the revised benefits are likely to be paid prospectively from next year.

Of the Rs 84,933-crore hit on the exchequer this year, a recurring expenditure of Rs 72,800 crore is due to pay and pension while Rs 12,133 crore is earmarked to pay arrears from last financial year (the panel’s award will take effect from January 2016).

On June 29, the Cabinet accepted the Pay Commission’s recommendations on pay and pension.

The minimum pay for the lowest level staff will now be Rs 18,000 per month (Rs 7,000 earlier); while the real increase pay/pension is 14.3%.

Source: Financial Express

Cabinet approves 7th Pay Commission recommendations

LIVE Update : Cabinet approves 7th Pay Commission recommendations:

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years.

The Union Cabinet on Wednesday approved the recommendations made by the 7th pay commission, news agency ANI reported.

The details of the approval, which will be made public soon, is likely to see a higher increase in the basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners.

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.

The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments.

Here’s how the 7th Pay Commission can affect your pay, most likely from August 2016!

Here’s how the 7th Pay Commission can affect your pay, most likely from August 2016!

The 7th pay commission has everything to make a central government employee happy and satisfied! The Commission is most likely to decide on a 30% hike on the basic pay. The minimum basic monthly salary recommended by the Commission was Rs 18000 and a 30% hike will make it to Rs 23500!

The 7th Pay Commission headed by Justice AK Mathur (Vivek Rae, retired IAS Officer; Rathin Roy, economist and Meena Agarwal, Secretary of the Commission are some of the other members of the Commission) had submitted its report to the Finance Minister earlier this year in the month of January. The Commission had suggested several recommendations like 23.55% increase in the pay and allowance, 24% hike for pensioners and OROP (One Rank One Pension) for central government employees and paramilitary personnel.

The exact decision of the Commission is impending. The Empowered Committee of Secretaries (13 member secretary level Committee to review the recommendation of the Pay Commission) is likely to make comparisons between the recommendations of the 7th pay commission and the comments from various stakeholders on the 7th Pay Commission. An Implementation Cell has been created in the Finance Ministry to work as the Secretariat of the Empowered Committee of Secretaries.

A Layman’s Guide to Pay Commission

Pay Commission has been set up by the Government of India, since Independence. The Commission is involved in giving recommendations regarding the salary structure of the Central government employees working in the civil and military divisions. Till date seven pay commissions have been set up for the same purpose.

The announcement for the 7th pay Commission was made on 04 February 2014. While Justice AK Mathur was the head of the Commission, other notable members included Vivek Rae, Dr. Rathin Roy and Meena Agarwal.

What will be the lowest and highest basic salary under 7th Pay Commission?

Under 7th Pay Commission the lowest and highest basic salary are Rs 18000 and Rs 250000, respectively. However the 30% hike will round the figures to Rs 23500 and Rs 325000 respectively. The figures reveal the drastic difference between the salary structure of the 7th Pay Commission with that of the 6th Pay Commission.

When is it likely to be implemented?

As mentioned above, the decision regarding implementation of the 30% hike is impending. However as per the latest reports it is likely to be implemented in August 2016.

What are the other salient features of the 7th Pay Commission?

* Annual increment has been hiked to 3%.

* HRA has been increased to 27%, 18% and 9%, if the DA crosses 50%; and further revision to 30%, 20% and 10%, when DA crosses 100%.

* Introduction of Health Insurance Scheme replacing the Central Government Health Scheme (CGHS).

* Introduction of OROP pension scheme for defence personnel

* Child Care Leave to be granted at 100% of salary for first 365 days and at 80% for next 365 days. CCL to be granted for single male parents.

The 7th Pay Commission is going to benefit near about 45 lakh Central government employees and almost 52 lakh pensioners.

Source : jagranjosh

7th Pay Commission implementation: Government says amount allocated to manage impact

7th Pay Commission implementation: Government says amount allocated to manage impact

Speculations are rife as Centre to take decision on 7th Pay Commision report implementation as around 47 lakh Central Government employees working in various sectors await their salary hike, which will have implications for government finances and inflation.

At a time when there are no conclusive increase in the private sector spending yet and the government also losing the benefits of low oil prices, it is facing a tough challenge in keeping up with the spending in public sector.

Reacting to a query, Finance secretary Ashok Lavasa said that a certain amount has been allocated to manage the impact of the pay commission award. But to speculate whether the amount is adequate enough, would be too early and premature.

Sources say, for this fiscal year the provision for hounouring the pay panel’s award is about Rs 54,000 crore whereas the outgo is estimated to be Rs 74,000 crore. Lavasa refused to comment on that saying no one knows as to what extent the government will accept the 7th Pay Commisions report.

Source : Financial Express

Government Doctors Meet Arun Jaitley, Demand Review Of 7th Pay Commission Recommendations

Government Doctors Meet Arun Jaitley, Demand Review Of 7th Pay Commission Recommendation

New Delhi: Government doctors have met Finance Minister Arun Jaitley and demanded revision of the 7th Pay Commission recommendations.

Representatives of the Federation of Resident Doctors Association (FORDA) and JACSDO (Joint Action Council of Service Doctor Organisation) met Mr Jaitley on Monday and put forward their demands saying, the recommendations are “discriminating to doctors”.

“The Minister listened to our issues patiently and attentively. He was appraised especially for NPA issue. He showed his concern about our salary being relatively reduced by 7 CPC.

“He assured us that our representation is being directed to Secretary Expenditure for re-evaluation. He also assured, if any concern still remains pending in the matter of NPA (and other issues), it shall be scrutinised and considered by forthcoming ‘Anomalies Committee’ which shall be appointed hereafter,” said FORDA in a statement issued on Tuesday.

FORDA and JACSDO have strongly been opposing the recommendations of the 7th Pay Commission and have written to the Prime Minister and Health Minister.

“When the 7th CPC was constituted we doctors were very hopeful that our demands will be looked after, which is increasing Non-Practising Allowance (NPA) to 40 per cent from existent 25 per cent, instead it has been reduced to 20 per cent.

“The basic pay and NPA were merged together while calculating House Rental Allowance (HRA) earlier, but this has now been omitted and HRA will be calculated only with basic pay resulting in less than the desired salary,” said FORDA President Dr Pankaj Solanki.

The doctor’s body also demanded uniform pay scales, night shift allowances which currently exists for nursing staff in government hospitals and the formulation of a uniform central residency scheme for the resident doctors of India.

FORDA is an umbrella organisation of 15,000 resident doctors across 41 government hospitals in the capital.

JACSDO represents 11 organised and unorganised Central Health Services (CHS), Indian Railway Medical Services (IRMS), Indian Ordinance Health Services (IOHS), MCD, NDMC, Delhi administration and ESIC. (PTI)

Source : NDTV

7th Pay Commission – NJCA Writes to PM on 7th Pay Commission related issues and regarding NPS

Com. Shiva Gopal Mishra, Secretary/Staff side writes to the Prime Minister on 14th of June 2016 regarding issues raised by the NJCA on the recommendations of the 7th pay commission sent to Cabinet Secretary vide letter dated 10th December 2015

7th Pay Commission – NJCA Writes to PM on 7th Pay Commission related issues and regarding NPS – He reports that the central government employees are very much disappointed with the recommendations of the 7th pay commission

Here is the excerpt of the letter which Com. Shiva Gopal Mishra, Secretary/Staff side wrote to the Prime Minister on the 14th of June 2016 regarding 7th Pay Commission recommendations.

‘With Great regret I bring to your notice that the central government employees demands have no ears to hear, hence we are forced to go on an indefinite strike from 11th July 2016.

Dear Sir, the central government employees are very much disappointed with the recommendations of the 7th pay commission. We have written to you before too, and to the empowered committee also. However we feel even after expressing our grievances, there is no concrete action taking place.

Sir, The new pension scheme is a curse on the employees. As far as employees are concerned, they are worried that in future they may be deprived of their pension in total. They are also worried that there is no guarantee of either family pension nor gratuity as per 7th pay commission recommendations. The central government employees are in fact very much annoyed and anxious with the 7th pay commission recommendations.

There are about 11 lakh employees, out of which around 5 lac employees are from railways, most of whom are responsible for safety, and our demand is, their job should be non transferable, for the safety reasons, since they know their area better.

Sir, we hope that you will do the needful to release the stress through which the employees are going on now.
Sir, we write to you in the hope that you do the needful and accept our just demands.’

The Charter of Demands send to the Prime Minister

• Settle the issues raised by the NJCA on the recommendations of the 7th pay commission sent to Cabinet Secretary vide letter dated 10th December 2015.
  Remove the injustice done in the assignment of pay scales to technical/safety categories etc. in Railways& Defence, different categories in other Central Govt. establishments by the 7th pay commission.
• Scrap the PFRDA Act and NPS and grant Pension/family Pension to all CG employees under CCS (Pension) Rules, 1972 & Railways Pension Rules, 1993.
  

  i) No privatization/outsourcing/contractorisation of governmental functions.
  ii) Treat GDS as Civil Servants and extend proportional benefit on pay, pension and allowances to the GDS.

• No FDI in Railways & Defence; No corporatization of Defence Production Units and Postal Department.
• Fill up all vacant posts in the government departments, lift the ban on creation of posts; regularize the casual/contract workers.
• Remove ceiling on compassionate ground appointments.
• Extend the benefit of Bonus Act,1965 amendment on enhancement of payment ceiling to the adhoc Bonus/PLB of Central Government employees with effect from the Financial year 2014-15.
• Ensure Five promotions in the service career of an employee.
• Do not amend Labour Laws in the name of Labour Reforms which will take away the existing benefits to the workers.
• Revive JCM functioning at all levels.

Read the letter to PM in Hindi here

7th Pay Commission Recommendations may be revised upwards by Committee of Secretaries appointed by Government

It is expected that decision of Committee of Secretaries on 7th Pay Commission recommendations would be submitted in the month of June 2016

7th Pay Commission Recommendations may be revised upwards by Committee of Secretaries appointed by Government.

Cabinet Secretary P K Sinha who is heading the Empowered Committee or Secretaries group is likely to hand over a report on the revised pay structures of 7th pay commission recommendations to Finance Minister Arun Jaitley by the end of next month.

Finance Minister Arun Jaitley said government had requisite fund to implement 7th pay commission award. Cabinet Secretary Sinha will finally make his appearance before the the Empowered Committee or Secretaries group on June 11 to make a proposal on the recommendations of 7th Pay Commission before cabinet nod.

Committee’s decisions on 7th Pay Commission Recommendations is expected to be submitted by June .  The same will be placed before the Cabinet after the finance ministry’s review. We don’t think it will take more time for Finance Minister Arun Jaitley’s consideration and the new pay structures will be implemented from July after cabinet nod,” said a top official from the Finance Ministry who did not wish to be named.

The 7th Pay Commission headed by Justice A K Mathur submitted the report on November 19. It had proposed the highest salary at Rs 250,000 and the lowest at Rs 18,000. The commission also recommended 14.27 per cent increase in basic pay, 23.55% overall increase in salary, allowances and pensions.

The increase in allowances has been recommended to the extent of 63% while pension has  been proposed to be raised by 24%. Finance Minister Jaitley is likely to agree with the Secretaries group. “I think it should not be touched again,” the official said. Once the new structure is implemented, salaries of around 48 lakh central government employees and 52 lakh pensioners will rise by 30 percent. The Finance Minister already said the 7th pay commission award would not make the commodity prices to go up.

The central government employees and pensioners will also spend more money on a variety of goods after receiving the 7th Commission award with arrears from January 2016. “This means higher consumption similar to what happened in the past. But the previous two Pay Commission awards came with a lag of two years. So the arrears were large.

This time, it will not be so,” says Pronab Sen, former Chief Statistician, government of India and now Country Director, International Growth Centre, a think tank based at LSE, run in partnership with University of Oxford.

The official also agrees with Sen and said there was no possibility of any impact of the report on the market at this stage of implementation as there were no impacts when the Pay Commission had first submitted the report. The government formed a 13 member secretary-level Empowered Committee or Secretaries group headed by Sinha in January to review the report of the 7th Pay Commission before cabinet nod. The 7th pay commission was set up by the UPA government in February 2014. It submitted the report after around 22 months. After getting the 7th pay commission report, the finance minister Jaitley while introducing the Seventh Pay Commission report on November 19, already said that the final decisions on the Seventh Pay Commission report took five and a half months including the process of Secretaries group. Finance Minister also said, government had requisite fund to implement it.


The secretary group is likely to propose pay structure of minimum at Rs 21,000 and the maximum at Rs 2,70,000 Accordingly, the Secretaries group is likely to reach the conclusion to propose 30 percent basic pay raise instead of 14.27 per cent, which was recommended by 7th Pay Commission.

They are also mulling for doubling of existing rates of such allowances and advances, which has been recommended for abolition by the 7th Pay Commission, sources said.

Source: Indian Military Veterans

7th Pay Commission award to stoke inflation, push up GDP: RBI report

7th Pay Commission award will put an upward pressure of 1-1.5 per cent on inflation, but is expected to boost GDP by around 40 bps during the current fiscal, RBI said in a report today.

At the same time, the central bank remained confident of meeting its March 2017 retail inflation target of 5 per cent.

“Assuming that the government implements the 7th Pay commission recommendations by the second quarter of 2016-17, CPI inflation could be, on average, 100-150 bps higher than the baseline in 2016-17. Its impact is expected to persist up to 24 months,” Governor Raghuram Rajan said in the a report released along with the monetary policy document.

The report, however, noted that the 7th Pay Commission award will boost GDP by around 40 bps during the current fiscal.

The 7th Pay Commission award impact will also jack up food prices, the report said, adding that “food prices could consequently increase, leading to inflation rising above the baseline by 80-100 bps in 2016-17, even assuming effective government policies relating to food stocks, procurement and minimum support prices”.

On achieving the inflation target (6 per cent in January this year), the Governor said inflation has evolved along the projected trajectory and the January 2016 target was met with a marginal undershoot.
“Going forward, CPI inflation is expected to decelerate modestly and remain around 5 per cent in FY17 with small inter-quarter variations,” he said, but warned that there are uncertainties surrounding this inflation path emanating from recent unseasonal rains, the likely spatial and temporal distribution of monsoons, the low reservoir levels by historical averages, and the strength of the recent upturn in commodity prices, especially oil.

Persistence of inflation in certain services warrants watching, mainly due to 7th Pay Commission award, he said, while there will be some offsetting downside pressures stemming from tepid demand in the global economy. But the government’s effective supply-side measures keeping a check on food prices, and “the government’s commendable commitment to fiscal consolidation” will have a salutary impact on inflation.
On growth, which it has retained at 7.6 percent for this fiscal, the report said, “The uneven recovery in growth in FY16 is likely to strengthen gradually in FY17, assuming normal monsoons, the likely boost to consumption demand from the implementation of the pay commission and OROP, and continuing monetary policy accommodation.”

The gross value add growth projection for 2016-17 is retained at 7.6 per cent, “with risks evenly balanced”.

PTI