A complete reference blog for Indian Government Employees

Tuesday, 3 November 2015

Removal of Grade Pay System in 7th Pay Commission – A detailed report

Removal of Grade Pay System in 7th Pay Commission – A detailed report

Will the removal of Grade Pay System by the 7th Pay Commission help Central Government employees? – This is the topic of this article.

“Unconfirmed reports say that the 7th Pay Commission is very likely to recommend the abolishing of the Grade Pay System introduced by the 6th Pay Commission.”

Not only the Government, but the Central Government employees too are hoping and wishing that the 7th Pay Commission functions independently, free from interventions. The report of the previous Pay Commissions will guide for determining the revision of pay scale and pay bands, allowances, retirement benefits and other facilities/benefits of more than 50 lakh employees. The Pay Commission also considers the recommendations, suggestions and inputs gathered from employees all over the country and presented as memorandums by federations like the NC JCM and the Confederation.

There is no rule that the new Pay Commission has to follow the same methodology and determination followed by the previous Pay Commissions. Therefore, one cannot state for sure that the 7th Pay Commission will tow the guidelines issued by the 6th or the 5th Pay Commission while deciding the new pay scale and pay bands.

One has to keep in mind the fact that the 6th Pay Commission was radically different from the recommendations and guidelines issued by the 5th Pay Commission. One has to also remember that a number of industry experts, who predicted the recommendations of the 6th Pay Commission based on the trends of the previous Pay Commission, were proved completely wrong.

If one Pay Commission has the right to recommend the splitting of the Pay Scale into two, the next Pay Commission has all the powers to completely abolish the system. But, this is not the issue!

Will the Central Government employees benefit by the removal of the Grade Pay system? This is the question now.

It will definitely be beneficial. Here are the reasons why.

It is unacceptable that a promotion, which comes after waiting for many years, brings with it an increment of just Rs.100.

None has until now accepted the splitting of the promotional hierarchy, which had been followed for years, into two.

The anomalies that prevailed due to the ‘Grade Pay Hierarchy’ which was introduced under the MACP promotional system, still remain unresolved.

When the discussions and debates on MACP system continued to grow unabated during the NC JCM Anomaly Committee meeting, it was decided that a separate meeting ought to be held to analyze this issue.
Most of the individual requests from the Central Government employees this time are about the MACP promotional system. The reason is the Grade Pay structure introduced by the 6th Pay Commission.
And also can list out many reasons to abolish the Grade Pay System.

Source: www.90paisa.org
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Payment of revised rate of Composite Personal Maintenance Allowance (CPMA) as per 6th CPC Orders

Payment of revised rate of Composite Personal Maintenance Allowance (CPMA) as per 6th CPC Orders

Ministry Of Defence
D(pay/Services)

Subject: Payment of revised rate of Composite Personal Maintenance Allowance (CPMA) as per 6th CPC Orders.

Reference CGDA UO No.AT/I/3510/6th CPC/Vol. IX dated 21.01.2015 on the above subject.
2. The matter has been examined in consultation with Defence (finance). It is clarified that composite personal Maintenance Allowance (CPMA) is admissible at single rate w.e.f. 01.09.2008 as per MoD letter No.1/54/2008/D(Pay/Services) dated 4.11.2008 irrespective whether service in kind has been provided or not. It is also clarified that MoD letter No.90099/AG/PS3(b)/1541/D(Pay/Services) dated 13.7.1998 stands obsolete after implementation of VI CPC recommendations.
(Prashant Rastogi)
Under Secretary
Ph: 23012739
Signed Copy Click here
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Bank Employees DA increased to 39.80% for Nov 2015 to Jan 2016

DA for Bank Employees : IBA issued orders for next quarter from Nov to Dec 2015

Indian Banks’ Association
HR & Industrial Relations
No.CIR/HR&IR/76/D/2015-16/1572
October 31, 2015
All Members of the Association
(Designated Officers)

Dear Sirs,
Dearness Allowance for Workmen and Officer Employees in banks for the months of November, December and January 2016 under X BPS/ Joint Note dated 25.5.2015

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base 1960=100) for the quarter ended June 2015 are as follows:-
July, 2015 – 6003.21
August, 2015 – 6026.04
September, 2015 – 6071.69
The average CPI of the above is 6033. Consequently, Dearness Allowance payable to employees is for 398 slabs for the period November, December 2015 and January 2016 i.e. an increase of 34 slabs over the current level.

In terms of clause 7 of the 10th Bipartite Settlement dated 25.05.2015 and clause 3 of the Joint Note dated 25.05.2015, the rate of Dearness Allowance payable to workmen and officer employees for the months of November, December 2015 and January 2016 shall be 39.80% of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

We advise banks to pay the difference between the old and revised salary and allowance to officers on an ad hoc basis, pending amendments to Officers’ Service Regulations.
Yours faithfully,
sd/-
K.S.Chauhan
Senior Vice President
PS : The DA Payable under IXth Bipartite Settlement/Joint Note dated 27.04.2010, is @ [119.85% (6033-2836)=3197/4] i.e 799 slabs @ 0.15% per slab).

Authority : www.iba.org.in
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Recovery of NPS subscription fee/charge – NC JCM writes to DoPT

Recovery of NPS subscription fee/charge – NC JCM writes to DoPT
Ph: 23382286
National Council (Staff Side)
Joint Consultative Machinery for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
E-Mail: nc.jcm.ni@gmail.com
No.NC/JCM/2015
Dated: October 31, 2015
Shri Sanjay Kothari,
Secretary,
Ministry of Personnel, Public Grievances & Pensions,
(Government of India)
North Block,
New Delhi – 110001

Dear Sir,
Sub: Recovery of NPS subscription fee/charge
Ref : Dy. General Manager, NPS Trust, New Delhi’s notice dated 19.10.2015

It has come to our notice that, @0.01% of the AUM on daily accrual basis is proposed to be imposed on the NPS Subscribers.

In this connection, it is worth-mentioning that, in the past, it was assured to the Central Government Employees that, no Administrative Charge/Fee would be imposed on any of the Government employees.
Orders to this effect, if so issued, should immediately be withdrawn.
Comradely yours,
sd/-
(Shiva Gopal Mishra)
Secretary(Staff Side) NC/JCM & Convener
Authority: www.ncjcmstaffside.com
Click to view the letter
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7th Pay Commission – ‘An unjustified pay hike’ - The Hindu

7th Pay Commission – ‘An unjustified pay hike’ - The Hindu


As we brace for another series of Pay Commission-mandated salary hikes, the question is if it is the best use of government resources.

As public servants get ready to enjoy the New Year’s blessing that the Seventh Pay Commission is expected to bestow, it may be a time for the rest of us to look this gift horse in the mouth. The Fourteenth Finance Commission estimates the cost of the Sixth Pay Commission at over Rs. 90,000 crore annually, since pay and allowances of Union government employees more than doubled between 2007-08 and 2011-12.

Compare this to the estimates in the economic survey for the year 2011-12, about Rs. 70,000 crore each for food subsidy, fertilizer and petroleum subsidy and less than Rs. 40,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Act. Simply put, the additional Central government expenditure due to the implementation of the Sixth Pay Commission was over 40 per cent of the major subsidies. If we take into account the costs to the State governments, the tab for Sixth Pay Commission largesse is probably equivalent to all the subsidies provided by the Central government. 

As we brace for another Pay Commission-mandated salary hike, the question to ask is not whether the government can afford it but if it is the best use of government resources. Government employees receive Dearness Allowance (DA) annually to compensate for inflation; they also receive an annual performance appraisal for promotions, which brings with it salary increases. So the decadal salary increases under the Central Pay Commission (CPC) are meant to address inequities in salaries across different parts of the government, across ranks as well as between the public sector and private sector. It is the latter that has provided the greatest justification for salary increases granted under CPC in the past.  

False premise

Dizzying salary packages reported for new Indian Institute of Management graduates or Indian Institute of Technology graduates funnel a sense of discontent among public sector employees since it is hard to imagine any 25-year-old government servant receiving a package of Rs. 40 lakh per annum. This smoke and mirrors strategy masks several observations made by the Sixth Pay Commission. First, it noted that the contention of vast disparities between private sector and government employees was not borne out by data. The CPC found that compensation to Group C and D employees in government was higher than that in the private sector; for Group B it was similar and only for Group A was it lower. Group A employees form less than 5 per cent of the total Central government workforce; Group C and D are about 90 per cent. Second, it noted that a government job offers many other benefits not available in the private sector and the fear of flight away from public service towards the private sector is overblown. 

The Fourteenth Finance Commission estimates the cost of the Sixth Pay Commission at over Rs. 90,000 crore annually.
In spite of these observations, the ultimate recommendations of the Sixth CPC led to substantial increases in the salary and allowance of all public servants, first in the Central service and later on in State governments. A comparison of incomes between private sector employees and government employees using data from India Human Development Surveys (IHDS) of 2004-05 and 2011-12 is instructive in understanding the consequences of the last CPC. These surveys of over 40,000 households were jointly organised by the National Council of Applied Economic Research and the University of Maryland. The graphic shows monthly salaries for men aged 25-59 in 2011-12. Many women work part time as anganwadi workers and ASHA workers and hence are excluded from this comparison, but their inclusion will not change the fundamental results.


The results show that at every single level of education, government workers are paid more than private sector workers and more importantly, the public service advantage has increased rather than decreased after the implementation of the Sixth Pay Commission recommendations. A driver in government service earns far more than one in private service, but so does an engineer. This comparison does not include the other benefits government service provides including PF contributions, housing benefits, health insurance and, frequently, admission of children to coveted Kendriya Vidyalayas. 

One might say that the problem is not global but is concentrated in highly skilled positions. Individuals who are highly skilled may be more likely to choose the private sector. Here only the Union Public Service Commission can tell us if the qualification of the entering cohort of the Indian Administrative Service officers is declining, but at a slightly lower stratospheric level, we see no such evidence. The IHDS shows that among college graduates with a first class degree, government service still seems to be preferred. In 2004-05, among the male college graduates employed in public service, 37 per cent had a first division; this proportion had increased to 39 per cent by 2011-12. This is not to say that skill upgradation is not taking place in the private sector, where the proportion of first class degree holders among graduates has increased from 28 per cent to 35 per cent, but these figures do not suggest that government services are suffering on an average; just that the more qualified individuals are seeking salaried work and moving away from farming and small businesses benefitting both government service and the private sector. 

One might say that the problem is not global but is concentrated in highly skilled positions.
That salary increases will be bestowed by the Seventh CPC is a given. Whether it will address the real challenge, lower wages for Group A officers compared to the private sector, and recognise the public service advantage for the rest of the employees remains questionable. Let us hope that the Seventh CPC will address the challenge of government salaries with a scalpel rather than an axe.

(Sonalde Desai is senior fellow at the National Council of Applied Economic Research and Professor of Sociology at the University of Maryland. Views are personal.)

Source: TheHindu
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Expected DA from January 2016 which is crucial for 7th CPC Pay

Expected DA from January 2016 is 125% after release of AICPI (IW) for September 2015 – Estimation of Dearness Allowance applicable to Central Government Employees and Pensioners

Ministry of Labour and Employment has released All India Consumer Price Index for the month of September 2015. It has reached 266 which is two point increase over the previous month. Unlike penultimate DA Installment estimation, the pattern of Consumer Price Indices that are available for arriving at expected Dearness Allowances from January 2016 provides us precise idea on expected DA from January 2016. Hence, we thought of making a prediction analysis a bit earlier this time.

In fact, the quantum of DA with effect from 1st January 2016, is very crucial for Central Government Employees and Pensioners, as it is going to determine the DA merged Pay and increase in allowances after implementation of 7th Pay Commission.

As a first step let us list the Actual AICPI – IW which are available as on date, for estimating DA from January 2016.

Month Actual AICPI-IW
Jan-2015 254
Feb-2015 253
Mar-2015 254
Apr-2015 256
May-2015 258
Jun-2015 261
July-2015 263
Aug-2015 264
Sep-2015 266
Oct-2015 Not released
Nov-2015 Not released
Dec-2015 Not released

Out of 12 Consumer Price Indices which are required to determine DA with effect from January 2016, nine indices are already available. So, consumer price indices for remaining three months will have to be assumed.
We have taken three possible assumptions this time, such that each assumption gives different quantum of increase in DA from January 2016.

Assumption 1: (Assumption of CPI for getting least possible increase in DA from January 2016)

The least increase in DA from January 2016 will be 5% (i.e., DA from January will be 124% ). Under this assumption, DA from January 2016 will be 124% only if CPI falls below the present level of 266 in at least two of three coming months. Though Chances for this scenario coming to reality is possible but the increasing trend in consumer price index from February 2015 negates this possibility.

DA from Jan 2016= [(254+253+254+256+258+
261+263+264+266+265+
265+266)-115.76]*100/115.76
= 124 % (5% increase in DA from Jan 2016)

Assumption 2: (Assumption of CPI for getting maximum possible DA from January 2016):

DA from January 2016 is calculated to be 126%, only if CPI touches 272 from the present level of 266, at least two times in the coming three months with at least one point increase in the remaining month.  We feel that this scenario is remotely possible considering the trend of CPI, which shows only moderate inflation.

DA from Jan 2016= [(254+253+254+256+258+
261+263+264+266+267+
272+272)-115.76]*100/115.76
= 126 % (7% increase in DA from Jan 2016)

Assumption 3: (Assumption of Most Possible Consumer Indices ):

Steady increase in AICPI-IW could be found from February 2015 at the rate of one to two point increase over previous month.

Even if CPI from October 2015 to December 2015 remains at 266 , DA from January 2016 will be 125%. Considering the trend in CPI in the recent months, it could be safely presumed that indices would increase one or two points in the coming months or at least remains in the same level. In both of these cases, DA from January 2016 will be 125%.

DA from Jan 2016= [(254+253+254+256+
258+261+263+264+266+
267+272+272)-115.76]*100/115.76
= 125 % (6% increase in DA from Jan 2016)
It is apparent that Assumption 3 has got better chances out of these three assumptions. Hence we can safely bet that DA from January 2016 will be 125%.

Source: gconnect.in
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Railway Employees: Grant of Hospital Patient Care Allowance

Grant of Hospital Patient Care Allowance

hospital patient care allowance

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD
No.2013/H-1/10/8
New Delhi,dated 26.10.2015
The Chief Medical Directors/Officers,
All Indian Railways/Production Units.

Sub: Grant of Hospital Patient Care Allowance.

Ref: NFIR’s letter no. 1/5(g)/Part V dated 19.10.2015.

National Federation of Indian Railwaymen in its letter has contentded that there is no designation or post of “Store Pharmacist” on Indian Railways and all the Pharmacists have been working in the Health Care delivery institutions/establishments whose duties involve dispensing medicines and maintaining records of medicines. In the railways there is no category exclusively designed as “Store Pharmacist” not involved in dispensing of medicines.

It is desired to furnish the facts on the matter alongwith details within 7 days by FAX. The same may be uploaded on Smdms.
(Dr. P.Pant)
Director/IH
Railway Board
Source: nfirindia
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Bank Employees to Get 34 Slabs Increase in DA for the Next Quarter

Bank Employees to Get 34 Slabs Increase in DA for the Next Quarter

Bank Employees to Get 34 Slabs Increase in DA for the Next Quarter – Accordingly Bank workmen/Officers will have 34 slabs increase in DA payable for next quarter Nov to Jan’16 at 39.80%.(3.40% increase from Existing 36.40%)

With the two point increase of All India Consumer Price Index Numbers (AICPIN) for the month of SEPTEMBER ’15, which stood at 266 points , Bank employees will get hefty increase of 34 slabs of D.A. for Nov’15 to Jan’16 quarter.

Accordingly Bank workmen/Officers will have 34 slabs increase in DA payable for next quarter Nov to Jan’16 at 39.80%.(3.40% increase from Existing 36.40%)

“DA for Nov 2015 increase of 3.4% means increase of 34 Slabs. Now Total DA will be 39.80 %” the Vice President of NOBW Mr.Ashwani Rana said.

Index numbers are yet to be updated in official website of labour ministry.

we have three months data
  • July 2015 263 (6003.21)
  • August 2015 264 (6026.04)
  • September 266 (6071.69)
As of now based on the above data 30 slabs or 3.00% is sure.

Source: NOBW
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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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