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Wednesday, 9 September 2015

Cabinet Approved 6% Hike in Dearness Allowance for Central Government employees

Cabinet Approved 6% Hike in Dearness Allowance for Central Government employees

Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.7.2015

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Pensioners w.e.f. 01.07.2015. This represents an increase of 6 percent over the existing rate of 113 percent of the Basic Pay/Pension, to compensate for price rise.

This will benefit about 50 lakh Government employees and 56 lakh pensioners.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be in the order of Rs. 6655.14 crore per annum and Rs.4436.76 crore in the financial year 2015-16 (for a period of 8 months from July, 2015 to February, 2016).

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Bonus Ceiling – NFIR writes to Railway Minister to remove of calculation ceiling for the purpose of payment of productivity Linked Bonus (PLB)

Bonus Ceiling – NFIR writes to Railway Minister to remove of calculation ceiling for the purpose of payment of productivity Linked Bonus (PLB)
 
Payment of Productivity Linked Bonus (PLB) – Removal of Calculation Ceiling
 
NFIR
National Federation of Indian Railwaymen
3,Chelmsford Road, New Delhi – 110 055
No.1/10/Part IV
Dated 08/09/2015
Shri Suresh Prabhu,
Hon’ble Minister for Railways
Railway Bhavan,
New Delhi.

Respected Sir,

Sub: Payment of Productivity Linked Bonus (PLB) – Removal of calculation ceiling – reg.
Ref: Item No.4 of 55 Point Charter of Demands of NFIR

Kind attention is invited to the announcement made by the Government of India, Ministry of Labour and Employment on 1st September 2015, conveyed through press Information Bureau, extract of item no.2 the subject reproduced below:-
For the purpose of bonus, the wage eligibility limit and calculation ceiling would be appropriately revised. It is proposed to revise the wage eligibility limit from Rs.10,000 to Rs.21,000 and calculation ceiling from Rs.3500 to Rs.7,000 or the minimum wage notified by the appropriate Government for that category of employment, whichever is higher, with the proposed revision of the minimum wages, the average
calculation ceiling would be about Rs.10,000.
In the light of the Government’s announcement as mentioned above.

NFIR requests the Hon’ble MR to kindly arrange to take action for removal of calculation ceiling for the purpose of payment of productivity Linked Bonus (PLB) to Railway employees. Incidentally it is mentioned that in the past, as and when the Government had revised the calculation ceiling, the Ministry of Railways have accordingly paid P.L. Bonus to employees.
Yours faithfully
sd/-
(Dr.M.Raghavaiah)
General Secretary
Source: NFIR
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Central Government Pensioners above 100 Years

Central Government Pensioners above 100 Years
The number of pensioners above 100 years of age drawing pension from Banks (PSBs) is 1774
An interesting question raised in Rajya Sabha on 4th August 2015 by the Hon’ble Member Shri Ahmed Patel regarding the Central Government Pensioners above 100 years. The Minister of State for Finance Shri Jayant Sinha replied as follows…

The number of pensioners above 100 years of age drawing pension from Banks (PSBs) is 1774, details at Annex. The Department of Pension & Pensioners’ Welfare (DOPPW) in a meeting held on 12.06.2015 with the concerned stakeholders in which common deficiencies in the banks’ data regarding Date of Birth, Mobile number, address of pensioner, Aadhaar numbers and number of pensioners over the age of 100 years were discussed. Banks with large number of pensioners above 100 years of age and having large number of records without date of birth of pensioners, mobile and Aadhaar numbers were asked to launch special drives and update their database. The Central Pension Accounting Office (CPAO) has issued instructions to banks to accept self-certification regarding marriage, income and non-employment. The banks should share master data along with Aadhaar numbers with CPAO for reconciliation of records.
Annex referred to in reply to parts (a)of Rajya Sabha Unstarred Question No. 1673 for 04.08.2015 by Shri Ahmed Patel regarding Pensioners above 100 years

S.No. Bank Name No. of pensioners drawing pension from Banks above 100 years
1 STATE BANK OF INDIA 792
2 STATE BANK OF BIKANER & JAIPUR 57
3 STATE BANK OF HYDERABAD 1
4 STATE BANK OF MYSORE 23
5 STATE BANK OF PATIALA 43
6 STATE BANK OF TRAVANCORE 18
7 ALLAHABAD BANK 78
8 ANDHRA BANK 1
9 BANK OF BARODA 20
10 BANK OF INDIA 18
11 BANK OF MAHARASHTRA 2
12 CANARA BANK 12
13 CENTRAL BANK OF INDIA 563
14 CORPORATION BANK 0
15 DENA BANK 3
16 INDIAN BANK 14
17 INDIAN OVERSEAS BANK 0
18 ORIENTAL BANK OF COMMERCE 4
19 PUNJAB AND SIND BANK 1
20 PUNJAB NATIONAL BANK 75
21 SYNDICATE BANK 9
22 UCO BANK 32
23 UNION BANK OF INDIA 7
24 UNITED BANK OF INDIA 1
25 VIJAYA BANK 0
26 IDBI BANK LIMITED 0
27 BHARATIYA MAHILA BANK 0
Total 1774
Source: http://rajyasabha.nic.in/
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DA and DR from July to Dec 2015 – Cabinet Committee may approve tomorrow

DA and DR from July to Dec 2015 – Cabinet Committee may approve tomorrow

As per media news, the Cabinet committee in its meeting tomorrow is likely to approve an additional Dearness Allowance for Central Government employees due from July 2015.

The second installment of this year, from July to December 2015, an additional DA is finalized hike by 6% as per the calculations recommended by 6th CPC. Now the Central Government employees and pensioners are getting 113% DA and DR, after the declaration by the Cabinet Committee on DA, it will become 119%.
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All you wanted to know about 7th Pay Commission?

All you wanted to know about 7th Pay Commission?

Government offices are currently buzzing with excitement as employees await the recommendations of the Seventh Pay Commission. While the babus may have reason to smile as they may soon have more money in the pocket, it might not be equally good news for others.

7th pay commission
What is it?

A Pay Commission is appointed by the government once every 10 years to look at the pay structure of Union and State government employees and pensioners. Typically, the commission takes 18 months to submit its report. The Seventh Pay Commission was constituted in February 2014 under the chairmanship of Justice Ashok Kumar Mathur to submit its recommendations by August 2015.
Pay commissions study the current pay scales and make recommendations on not just pay increases, but also pay structure. For example, the Sixth Pay Commission recommended that transport allowance, which was a lump-sum amount earlier, be paid along with a Dearness Allowance component. Likewise, the House Rent Allowance calculation was pegged to a percentage of pay. From the Seventh Pay Commission, there are expectations of tweaks to retirement age, performance-linked pay and flexible work hours for women and employees with disabilities, apart from pay hikes. The recommendations are expected to be effective from January 1, 2016. If there are delays, the pay revisions would be done with retrospective effect.


Why is it important?

For three reasons. One, it has an impact on government spending and fiscal deficit. For example, after the Sixth Pay Commission was implemented, the fiscal deficit that year doubled to 6 per cent in 2008-09, partly due to the resulting increases.

Currently, Central government pay and allowances account for 1 per cent of the country’s GDP. This could increase if the pay hikes are significant. Based on the medium-term expenditure framework presented to Parliament, a 16 per cent pay increase is likely from the Seventh Pay Commission. This could add 0.2-0.3 per cent of GDP by way of additional expenditure in 2016-17, estimates DBS.

Two, if the government sticks to its fiscal deficit targets, the higher outgo may entail cuts in other items of spending, including capital expenditure.

Three, pay increases granted by the commission can act as a stimulus to the economy by boosting the consumption leg of GDP. At last count, India employed 48 lakh Central government employees and 55 lakh pensioners and over one crore State and local government employees. The Fourteenth Finance Commission estimates that after the Sixth Pay Commission, pay and allowances to Central government employees more than doubled in a four-year period between 2007-08 and 2011-12.


Why should I care?

If you are a government employee, retiree or a job aspirant, you probably would be watching out eagerly for the report. As an investor, you can consider consumption as a theme to bet on — there is a co-relation between pay commission increases and discretionary spending in urban India. Higher disposable income in the hands of the people could aid automobile and property sales.

The country’s fiscal deficit is a cause for concern as it impacts tax policies.

The bottomline
Pay attention to the recommendations of this commission. It matters to the economy, to the deficit and to your portfolio.

Source: www.thehindubusinessline.com
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Central Government favours discontinuing interview for appointment to various posts

Government favours discontinuing interview for appointment to various posts

Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh has said that the Union Government is in favour of doing away with the practice of holding interviews for appointment to junior level posts.

Presiding over a meeting of Principal Secretaries of General Administration Department (GAD)/Personnel from different States and Union Territories here today, Dr Jitendra Singh said that the Department of Personnel & Training (DoPT) has initiated a serious exercise for identifying the posts for which interview for selection can be discontinued and a communique in this regard has been sent to various State Governments, State Public Service Commissions and Staff Selection Commission. He said that this follows the suggestion put forward by the Prime Minister Shri Narendra Modi during his Independence Day address to the nation from the ramparts of the Red Fort.

Dr Jitendra Singh said that the government will soon identify all those posts, particularly at junior level like Group III & IV, where an interview is avoidable and will stop this practice. He said, for a post for which an interview is not necessary to determine the capability of a candidate, the provision of interview sometimes leads to scope for manipulation, manoeuvrability and corruption. Therefore, barring such posts where an interview would help in testing special capabilities for a particular assignment, abolition of the provision of interview will not only be in larger public interest but would also offer a level playing field for even those of the candidates who lack resources and come from lower socio-economic strata, he added.

Referring to some of the revolutionary decisions taken by the DoPT during the last 15 months of the present government, Dr Jitendra Singh made a special mention of the introduction of self-attestation of certificates. This, he said, not only eliminated inconvenience caused to the youth for going around to seek attestation of certificates from gazetted officers, etc., but also sent out a reassuring message that the present government has the capacity to trust the youth of this country. Similarly, he also referred to the Pension Department’s plans to finalise Pension Portal which would help in ending the practice of producing life certificates by a pensioner.

Dr Jitendra Singh also informed that a pilot exercise undertaken for three States of Jammu & Kashmir, Maharashtra and Tamil Nadu had proved successful wherein, for the first time, an Induction training programme was introduced for the newly inducted State-level functionaries and the same practice is now being extended to other States as well. He also referred to a landmark decision by the DoPT to revise and revisit the pattern and syllabus of IAS and other Civil Services Exam to offer a level playing opportunity for aspirants from different streams.

The meeting was attended among others by Secretary, DoPT, Shri Sanjay Kothari, Secretary, Department of Administrative Reforms & Public Grievances, Shri Devendra Chaudhry and Establishment Officer, DoPT, Shri Rajiv Kumar.

Source: PIB News
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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   ...

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