7th Pay Commission: Demanding higher allowances is "realistic" says Finmin

7th Pay Commission: Demanding higher allowances is "realistic" says Finmin

New Delhi: The central government employees unions demanding higher allowances, a realistic view of what government can afford, the Finance Ministry sources have confirmed.

Speaking to senior Finance Ministry sources were keen to the demands being met, insisting the work of the ‘Committee on Allowances’ to submit its final report within May, will determine what is doable.

"The government has a lot of pressures on the purses this year and higher allowances obviously is a key one. Demands are reasonable and realistic. But the government will not be held hostage," said one senior source last night.
They told "The issue of higher allowances is currently under consideration by the 'Committee on Allowances'.
In line with their mandate, the committee will produce a report within May.

This report will form the basis of negotiations with the central government employees unions. Any higher allowance settlement emitting from these negotiations must be affordable and sustainable.

The National Joint Council of Action (NJCA), which is a centralised union of several central government employees unions, has told cabinet secretary that the higher allowances must be given with retrospective effect from January 1, 2016.

The committee will have regard to the national finances before accepts NJCA above demand, the source said.

The central government employees unions had threatened to call for nationwide strike in May due to delay in implementation of higher allowances.

In response to this, the sources said, "the government expects the 'Committee on Allowances' to report by May or even before then. They are going to be very difficult discussions and negotiations."

The 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa was formed in July last year for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 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 Arun Jaitley extended the deadline for report submission to February 22, 2017 but committee has not yet submitted its report.

The central government employees got theirs arrears of basic pay arising from implementation of the 7th Pay Commission recommendations in one go in August salaries. The hike in basic pay has been made effective from January 1, 2016 but they are still awaiting for the higher allowances.

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

7th Pay Commission: Employees unions to strike for higher allowances

7th Pay Commission: Employees unions to strike for higher allowances

New Delhi: The central government employees unions, aggrieved over the delay on higher allowances under the 7th Pay Commission recommendations, may call for nationwide strike if the Committee on Allowance fails to submit its final report within this month.

The Committee on Allowances is likely to submit its report on higher allowances under the 7th Pay Commission to the Finance Ministry this week, media reported.

But there is no official confirmation in this regard.

It's been almost nine months since the formation of the Committee on Allowances, but it is yet to submit its report.

The government in July last year had formed the 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa, for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

The committee was asked to submit its report within four months, but later its tenure was extended to February 22, this year.

However, the Finance Secretary Ashok Lavasa said in October last year, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."

Meanwhile, the National Council Staff Side has called a meeting on May 2 of the Joint Consultative Machinery (JCM) to discuss the next course of action if the Committee on Allowance further delays report.
National Joint Council of Action (NJCA) convenor Shiv Gopal Mishra said the central government employees might go on strike if the Committee on Allowances delays the report further or rejected their demands.

The National Joint Council of Action (NJCA) is an umbrella organisation of various Central Government employees unions, including Railways, post and telegraph and Income Tax.

The NJCA is leading the negotiation over 7th Pay Commission on behalf of central government employees.
"The JCM meeting is called on May 2. Whether the Lavasa Committee submits it report or not (by the end of the month), the meet would be held.

If the report on allowances is not tabled, then we will plan the next step of action. I cannot rule out the option of reviving the call for strike.

After all, how long should the employees wait?" said Shiv Gopal Mishra.

The issue of hike in minimum pay would also be discussed at the JCM meet.

"It is the centrifugal issue. All pay commission so far had kept the issue of minimum salary at the centre. We will negotiate with the government and attempt to persuade them," he said.

Central government employees are unhappy because of the pay commission recommendation of reducing the house rent allowance (HRA) to 24%, 16% and 8% of basic pay as against the 30%, 20% and 10% of basic pay employees were drawing under the Sixth Pay Commission.

It is noted that central government employees unions also demanded for hiking minimum pay Rs 18,000 to Rs 26,000 and they asked to raising fitment factor 3.68 times from 2.57 times approved by the government based on the pay commission recommendations.

If the 2.57 fitment formula is tinkered with, then salary and pension in general for all central government employees will go up.

Finmin: Employees to get higher allowances with retrospective effect 7th Pay Commission

Finmin: Employees to get higher allowances with retrospective effect 7th Pay Commission

New Delhi: A finance ministry official, speaking on condition of anonymity, today said that the Central government employees will get the higher allowances under the 7th pay commission recommendations with retrospective effect from January 1, 2016.

Responding to our reporter, the finance ministry official said the central government has to accept to implement the 'Committee on Allowances' recommendations without any hartals by the employees’ unions.
In the past, employees unions had to come on roads and go on strike to push for implementation of pay commission, but this time the government has to order the implementation of higher allowances soon as it is their right, he said.

Employees will get the benefits of the higher allowances with retrospective effect from January 2016, the official said, adding that the government is also working on formulating plan for paying arrears on this account.

The finance ministry will formulate roadmap for payment of arrears, he added.

The government in July last year had formed the 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa, for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 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 Arun Jaitley extended the deadline for report submission to February 22, 2017.
The ‘Committee on Allowances is yet to submit its report. The committee is now in the process of finalising its report and the government would take a decision after the report is submitted. It may be taken more time to finalise its report.

Accordingly, the National Joint Council of Action (NJCA), which is a centralised union of several central government employees unions, has told cabinet secretary that the higher allowances must be given as arrears from January 2016.

The central government employees and 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 but the they are still awaiting for the higher allowances.

I have met the Cabinet Secretary on March 28 and have submitted our demands. In which the NJCA have clearly mentioned that whenever there is an implementation of 7th Pay Commission the government has to pay higher allowances effective from January 2016. If the government fails to do so then we will object it in an organised manner, Shiv Gopal Mishra, Convenor, NJCA, said.

TST

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

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

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

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

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

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

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

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

Earlier, the government has given higher basic pay in August 2016 with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance referred to the Committee on Allowances for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Accordingly, existing allowances are now paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

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

TST

7th Pay Commission: Salary hike to central government employees affects economic growth

7th Pay Commission: Salary hike to central government employees affects economic growth

New Delhi, Dec 8: Prime Minister Narendra Modi led government on July 29 announced to implement the 7th Pay Commission’s recommendations on salary hike of central government employees. The announcement of implementation of the 7th Pay Commission recommendations made impact of country’s economic growth, said Reserve Bank of India (RBI). The central bank mentioned the 7th Pay Commission in the Monetary Policy Committee (MPC) meeting statement announced on Wednesday that lowered the country’s growth forecast for 2016-17.

The RBI’s Monetary Policy Committee (MPC), during its second bi-monthly monetary policy review - the fifth of the fiscal - lowered the country’s growth forecast for 2016-17 to 7.1 per cent from 7.6 per cent. In its statement, the MPC also revealed the impact of the 7th Pay Commission on the GDP.
“Incorporating the expected loss of growth momentum in Q3 and waning effects in Q4 alongside the boost to consumption demand from higher agricultural output and the implementation of the 7th Central Pay Commission award, gross value added (GVA) growth for 2016-17 is revised down from 7.6 per cent to 7.1 per cent, with evenly balanced risks,” the MPC said in its monetary policy statement.

As estimated by the 7th Pay Commission, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16. These figures are significant.

According to the 7th Pay Commission notification, central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. It had proposed 138.71 percent hike in HRA and 49.79 percent for other allowances. The government is yet to take final call on raising allowances. If the government decides to implement the recommendations of the 7th Pay Commission on allowances, there is a risk of inflation going up.

“The fuller effects of the house rent allowances under the 7th CPC award are yet to be assessed, pending implementation, and have not been reckoned in this baseline inflation path,” the MPC statement of Wednesday said

Source: www.india.com

7th Pay Commission: Finance Ministry gets extension of 2 months, may delay higher allowances notification

7th Pay Commission: Finance Ministry gets extension of 2 months, may delay higher allowances notification

New Delhi, Dec 7: The notification for the implementation of higher allowance, under the 7th Pay Commission recommendations, is likely to be issued after January 2017. The Finance Ministry has got extension of two months to issue the higher allowances notification under 7th Pay Commission recommendations. It means the higher allowance notification, under the 7th Pay Commission recommendations, may get delayed till January next year. The government intends to accept the report of 'Committee on Allowances’ after December 30, deadline for depositing demonetised notes.
The October-November month is the scheduled for issuing notification, but the Finance Ministry has got extension of two months because of the cash shortage following demonetisation drive. The government doesn’t want to increase the burden of banks that has been witnessing cash crunch due to demonetisation of Rs 500 and Rs 1000 notes. The government hopes that situation will return to normal after December 30 and it will be able to pay higher allowances to its 4.8 million employees as per the recommendations of the 7th Pay Commission.

“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,” a Finance Ministry official was quoted as saying by Sen Times.

“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,” he added.

Sources in the Finance Ministry said the government is likely to issue higher allowances notification under the 7th Pay Commission recommendations from January next year, after the the cash crunch will ease. The central government employees have been waiting for fatter allowance since July when the notification for the implementation of the 7th Pay Commission recommendations was issued.
Earlier we reported that the government is planning to pay higher allowances under the 7th Pay Commission from January, 2017.The ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa, on fatter allowances under the 7th Pay Commission recommendations is ready with its report. However the massive cash crunch post demonetisation drive has compelled the Finance Ministry to keep in abeyance the enhanced allowances till things normalize. Allowances are now being paid to the central government employees according to the 6th Pay Commission recommendations.

Source : www.india.com

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

7th Pay Commission: Higher allowances from January

7th Pay Commission: Higher allowances from January

New Delhi: The central government employees to get their higher allowances under the 7th Pay Commission recommendations from January next, the top Finance Ministry sources told today.

When asked whether the arrears would be paid too, they said, “Higher allowances will be paid with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.”

“The central government employees unions wanted that House Rent Allowance (HRA) be fixed at range 10, 20 and 30 per cent of the basic linked to the classification of the town of posting when the Pay commission recommended 24%, 16% and 8% respectively of new pay matrix, the union also asked to enhance children education allowance of Rs 3,000 and hostel subsidy of Rs 10,000 with tax exempt.” the sources said.

The union also demanded inclusion of post-graduate and professional courses in children education allowance and to hike the ‘Fixed Medical Allowance to Rs 2,000 with Dearness Allowance Indexation,” they added.

The unions put their demands before the Committee on Allowances headed by Finance Secretary Ashok Lavasa, which met last Thursday.

The Union Cabinet cleared the recommendations of 7th Pay Commission in respect of the hike in basic pay and pension on June 29 but decision on its suggestions relating to allowances has been referred to the Committee on allowances as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. So, there was resentment among employees over suggestions to scrap some allowances.

Fearing a jump in footfalls to deposit or withdraw cash following the demonetisation of Rs 500 and 1,000 banknotes, the Finance Ministry is likely to scale down the the higher allowances proposal.

“As people continue to suffer after demonetisation from November 9 on account of cash crunch, the Finance Minister Arun Jaitley compels to keep in abeyance the higher allowances till things normalize and it is likely to implement from January next,” Finance Ministry sources revealed.

Until acceptance of higher allowances, the allowances are now paid according to the 6th Pay Commission recommendations.

TST

7th Pay Commission - CG Employees Suffer in Cross Fire - Implementation bound to be delayed

7th Pay Commission - CG Employees Suffer in Cross Fire - Implementation bound to be delayed

7th pay commission : On Tuesday night Prime Minister Narendra Modi took the nation by surprise and announced a crackdown on Rs 500 and Rs 1000 notes with effect from the same midnight, making these notes invalid across India.

The recent development has no doubt caused inconvenience to common people. But the most effected ones are government employees who have been eagerly waiting for the 7th Pay Commission award. The implementation may get delayed following the governments surgical strike on black money to curb rising black money, fake currency, and corruption.

Sources indicate that the higher allowances under the 7th Pay Commission which were to be implemented soon will be delayed till the situation returns to normalcy.

“The process of higher allowances may be delayed as now the government is busy for making situation normal after a surgical strike on black money,” a top official of Finance Ministry was quoted by a news portal on condition of anonymity.
The official further added that “after the surgical strike on black money issues, the central government has to keep the process of higher allowances in the pipeline and is waiting for things to get normalised”.

The top official further added that “the government is in fear of any eventual incident for a surgical strike on black money in the country and in view of the current scenario, the government has decided to delay the announce of higher allowances”.

The Central Government employees unions are pressing hard on the government to announce the higher allowance and they had recently called for a Parliament march on December 12. Earlier there were reports that the ‘Committee on Allowances’ has already given a final touch to its report on higher allowances. The committee met up with the deadline of four months given to it by the cabinet to submit its reports, the top official confirmed.

There are reports that the quantum of allowances may not vary from those proposed by the 7th Pay Commission as the committee looking into the issue sticks with the 7th Pay Commission’s recommendations on allowances proposed higher allowances with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with effect from January 2016.

Recently Finance Secretary Ashok Lavasa said that his team is ready to submit its report whenever Finance Minister Arun Jaitley calls up. The committee on allowances was set up on July this year in the direction of the cabinet.