A complete reference blog for Indian Government Employees

Monday, 1 June 2015

Will 7th Pay Commission recommend the Revised Pay Scale without Grade Pay?

Will 7th Pay Commission recommend the Revised Pay Scale without Grade Pay?

Is there a possibility that the 7th Pay Commission would introduce the new Pay Scale for the Central Government Employees without Grade Pay?

Unionist who had interacted directly with the members of the 7th Pay Commission say that the chances are high. Although it is impossible to confirm this at the moment, all the employee federations have, through their memorandum, requested that the Grade Pay system be avoided this time.

The 6th Pay Commission had included the concept of Grade Pay as part of the basic pay. The intention behind such a concept was never explained. The Commission too didn’t bother to explain why.

So, do we really need Grade Pay Structure? 
What are the advantages? 
What do we lose if we avoid it?

As far as we could see, there was nothing to gain by splitting the basic pay into two.
 
A demand was placed before the 6th Pay Commission that increment be given with each promotion. This demand was stressed by all the employee federations at that time. As a result, the 6th Pay Commission recommended that Promotional Increment be issued with each promotion. All CG Employees federations had an important role to play in the Government’s decision to hike the Pay Commission’s recommended the rate of increment from 2.5% to 3%.

Prior to the 6th Pay Commission, if an employee’s promotion takes him from one pay scale to the next scale, he is then eligible for two promotional increments. If the promotion remained confined within the same pay scale span, then there was no increment. The federations highlighted this situation while making its demand. Also, an average employee hardly gets three promotions in his career, before retirement. In terms of monetary benefits, there was nothing much.

There might not be any relationship between Grade Pay and Promotional Increment, but there is definitely no connection between the Grade Pay and the Annual Increment.

From the day it was introduced, Grade Pay had only created pay anomalies for the employees. The system of Departmental Hierarchy, which had been in place for years, was divided into Promotional Hierarchy and Grade Pay Hierarchy. This was the main culprit. Grade Pay was also responsible for the formation of separate committee for MACP, like the National Anomaly Committee.

Those who were promoted from Rs. 2800 to Rs.4200 might have called Grade Pay a wonderful concept. But Grade Pay structure had nothing to do with it. Credit belonged to the system of Merger of Grades. Since 5000, 5500 and 6500 were merged into one category, the Grade Pay of 6500 was given to 5000 and 5500. This made an increase of 1400 possible with a single promotion from 2800 to 4200. As far as Grade Pay was concerned, this was a 50% hike.

The revelations were surprising indeed. The steep increase of 50% was confined to just one instance.

GRADE PAY DIFFERENCE IN AMOUNT DIFFERENCE IN %
1800

1900 100 5.56%
2000 100 5.26%
2400 400 20.00%
2800 400 16.67%
4200 1400 50.00%
4600 400 9.52%
4800 200 4.35%
5400 600 12.50%
6600 1200 22.22%
7600 1000 15.15%
8700 1100 14.47%
10000 1300 14.94%
12000 2000 20.00%
BASIC PAY DIFFERENCE IN AMOUNT DIFFERENCE IN %
2750

3050 300 10.91%
3200 150 4.92%
4000 800 25.00%
4500 500 12.50%
5000 500 11.11%
5500 500 10.00%
6500 1000 18.18%
7450 950 14.62%
7500 50 0.67%
8000 500 6.67%
9000 1000 12.50%
10000 1000 11.11%
10325 325 3.25%
10650 325 3.15%
12000 1350 12.68%
12750 750 6.25%
14300 1550 12.16%
15100 800 5.59%
16400 1300 8.61%
18400 2000 12.20%
22400 4000 21.74%
24050 1650 7.37%
26000 1950 8.11%
30000 4000 15.38%

Will this continue with the 7th Pay Commission too?

Source: 90paisa.org
Share:

Revision of classification cities for the purpose of House Rent Allowance and Transport Allowance to Central Government employees

Revision of classification cities for the purpose of grant of House Rent Allowance and Transport Allowance to Central Government employees

Revision of the classification/upgradation certain cities/towns on the basis of Census-2011 for the purpose of grant of House Rent Allowance and Transport Allowance to Central Government employees

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the proposal of the Ministry of Finance, Department of Expenditure for reclassification/upgradation of certain cities/towns on the basis of Census-2011, for the purpose of grant of House Rent Allowance (HRA) and Transport Allowance to Central Government employees.

On the basis of the final population figures of Census-2011, two cities have qualified for being upgraded from ‘Y’ class to ‘X’ class and 21 cities have qualified for being upgraded from ‘Z’ to ‘Y’ class for the purpose of HRA. Six cities have qualified for being upgraded from “Other Places” to specified higher class for the purpose of Transport Allowance.

The revised classification of cities shall take effect from 01.04.2014. The impact on the exchequer on account of upgradation of 29 cities, would be approx. Rs.128 crore for the year 2014-15.

Background:
HRA and Transport Allowance are admissible to Central Government employees depending upon employees’ Basic Pay (including NPA where applicable)/Grade Pay and the classification of the city/town where they are posted. The existing classification of cities/towns in different classes viz. ‘X’, ‘Y’ and ‘Z’ for the purpose of HRA and 13 specified cities classified earlier as ‘A-1’/ ‘A’ and “Other Places” for the purpose of Transport Allowance, is as per the criterion recommended by the 6th Central Pay Commission.
The existing qualifying limits of population for classification for HRA purpose is 50 lakhs & above for ‘X’, 5 – 50 lakhs for ‘Y’ and below 5 lakhs for ‘Z’ class city. Transport allowance is payable at ‘higher rates’ in 13 specified cities classified earlier as ‘A-1′ / ‘A’ (that is those cities having population of 20 lakhs & above) and at ‘lower rates’ in all other places.

The classification of cities/towns for this purpose is revised on the basis of their population as reflected in the decennial census report. The existing classification of various cities/towns is based on 2001 Census figures. The criterion of population for this purpose has been followed as recommended by the Central Pay Commissions.

Cities/towns to be upgraded on the basis of census-2011 for grant of House Rent Allowance

Cities to be upgraded/re-classified as “X”

Ahmadabad(UA)
Pune (UA)
Cities to be upgraded/re-classified as “Y”
Nellore (UA)
Gurgaon (UA)
Bokaro Steel City (UA)
Gulbarga (UA)
Thrissur (UA)
Malappuram (UA)
Kannur(UA)
Kollam (UA)
Ujjain (M. Coprn.)
Vasai-Virar City (M. Corpn.)
Malegaon (UA)
Nanded-Waghala (M.Corp.)
Sangli (UA)
Raurkela (UA)
Ajmer (UA)
Erode (UA)
Noida (CT)
Firozabad (NPP)
Jhansi (UA)
Siliguri (UA)
Durgapur (UA)

Cities/towns to be upgraded on the basis of census-2011 for grant of Transport Allowance

Cities to be added for higher rates of Transport Allowance (i.e. which have population of more than 20 lakh to qualify for earlier classification as “A-1”/ “A” as stipulated in O.M. No. 21(2)/2008-E.II(B) dated 29.8.2008):

Patna (UA)
Kochi (UA)
Indore (UA)
Coimbatore (UA)
Ghaziabad (UA)

Source: PIB News
Share:

Income Tax Return Forms ITR 1, 2 and 4S Simplified for Convenience of the Tax Payers

Income Tax Return Forms ITR 1, 2 and 4S Simplified for Convenience of the Tax Payers 

A New Form ITR 2A Proposed which can be Filed by an Individual or HUF who does not have Capital Gains, Income from Business/Profession or Foreign Asset/Foreign Income; In Form ITR 2 and the New Form ITR 2A, the Main Form will not Contain more than 3 Pages, and other Information will be Captured in the Schedules which will be Required to be filled only if applicable;

As the Software for these Forms is under Preparation, they are likely to be available for e-filing by 3rd week of june 2015;Time Limit for Filing these Returns is also Proposed to be Extended up to 31.08.2015;
Only Passport Number, if available, would be required to be given in forms Itr-2 and itr-2A. Details of Foreign Trips or Expenditure thereon are not required to be Furnished

Forms ITR 1, 2 and 4S for Assessment Year 2015-16 were notified on 15th April 2015 (15.04.2015). In view of various representations, it was announced that these ITR forms will be reviewed. Having considered the responses received from various stakeholders, these forms are proposed to be simplified in the following manner for the convenience of the taxpayers:-
1) Individuals having exempt income without any ceiling (other than agricultural income exceeding Rs. 5,000) can now file Form ITR 1 (Sahaj). Similar simplification is also proposed for individuals/HUF in respect of Form ITR 4S (Sugam).

2) At present individuals/HUFs having income from more than one house property and capital gains are required to file Form ITR-2. It is, however, noticed that majority of individuals/HUFs who file Form ITR-2 do not have capital gains. With a view to provide for a simplified form for these individuals/HUFs, a new Form ITR 2A is proposed which can be filed by an individual or HUF who does not have capital gains, income from business/profession or foreign asset/foreign income.

3) In lieu of foreign travel details, it is now proposed that only Passport Number, if available, would be required to be given in Forms ITR-2 and ITR-2A. Details of foreign trips or expenditure thereon are not required to be furnished.

4) As regards bank account details in all these forms, only the IFS code, account number of all the current/savings account which are held at any time during the previous year will be required to be filled-up. The balance in accounts will not be required to be furnished. Details of dormant accounts which are not operational during the last three years are not required to be furnished.

5) An individual who is not an Indian citizen and is in India on a business, employment or student visa (expatriate), would not mandatory be required to report the foreign assets acquired by him during the previous years in which he was non-resident if no income is derived from such assets during the relevant previous year.

6) As a measure of simplification, it has been endeavoured to ensure that in Form ITR 2 and the new Form ITR 2A, the main form will not contain more than 3 pages, and other information will be captured in the Schedules which will be required to be filled only if applicable.
As the software for these forms is under preparation, they are likely to be available for e-filing by 3rd week of June 2015. Accordingly, the time limit for filing these returns is also proposed to be extended up to 31st August, 2015 (31.08.2015). A separate notification will be issued in this regard.

Source: PIB News
Share:

Central Government committed to OROP, there’s no doubt about it: PM Narendra Modi

Central Government committed to OROP, there’s no doubt about it: PM Narendra Modi

In an exclusive interview to the Tribune, PM takes on the Opposition ove land bill, ‘achhe din’ jibe, corruption and economy
Tribune News Service New Delhi, May 29
One Rank One Pension:
One rank, one pension We are in consultation with defence personnel on its definition. We are committed to it. We are looking for a way where all stakeholders agree. This should not be politicised.
Three days after completing his first year in power, Prime Minister Narendra Modi, in a no-holds- barred interview to The Tribune today, said his government was committed to One Rank One Pension (OROP) for ex-servicemen and that no one should have any doubts about its implementation. The PM said the Congress was politicising OROP. “The previous governments don’t have the justify to speak about it because they did nothing when they were in power.”

On OROP, the PM said the government was “in constant discussions with the armed forces personnel to arrive at a please-all definition of OROP of which there are varied versions.”

“No one should have any doubts about OROP’s implementation. I want everyone to know that through The Tribune. But there are varied versions about what the definition of OROP should be. Would it be proper for me to take a decision without keeping the armed forces personnel in the loop? So we are trying to arrive at a please-all decision,” the PM said.

In an evident dig at Congress vice president Rahul Gandhi who recently threatened an agitation if OROP was not implemented soon, the PM said, “OROP for me is not a political programme. For 57 years the jawans have been demanding OROP, but the previous governments did nothing. Those who were part of then governments must realize they don’t have the justify to speak on this issue.”

Asked if the government would expedite OROP, the PM said the Government was committed to it. “The government has been formed for five years.” Need Definition of One Rank One Pension, Says PM Modi

Read more at : The Tribune EPaper
Share:

Featured post

Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019

Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019   ...

Blog Archive

About The Author