A complete reference blog for Indian Government Employees

Tuesday, 19 July 2016

Seventh pay commission: A Damp squib?

Seventh pay commission: A damp squib?

As the NDA government, aims for a double-digit growth trajectory of the Indian economy, a pay hike to almost one crore government employees and pensioners can come handy, as it will push demand. The 7th central pay commission (CPC), submitted its report earlier this year, and finance minister Arun Jaitley welcomed it, terming it ‘historic’. The cabinet accepted the recommendations last month. However, employees are not happy, and have announced plans for a protest strike.

The recommendations by the justice Ashok Kumar Mathur commission for providing a hike of an average 16 percent increase in pay, 63 percent in allowances and 24 percent increase in pension have failed to create excitement.

Officers at higher levels getting better increments are worried about the rising inflation. Moreover, they feel their salaries are not at par with those in the private sector. Meanwhile, the low-rung employees and middle-level officers are unhappy with the wages.

Therefore, soon after the release of the pay commission report, employee unions threatened to go on a nation-wide strike on July 11. Questions have been raised on the calculation of the minimum wage, which as per the latest CPC is Rs 18,000 per month as compared to Rs 7,000 earlier. Almost 33 lakh employees have demanded the minimum wage be increased to Rs 26,000. Undoubtedly, the hike is the lowest in the seven decades.

The strike, though, has been deferred for four months after home minister Rajnath Singh assured them of constituting a high-level committee to look into the demands. A sense of resentment, however, looms over the central government employees, especially among the lower rung.

Jaitley though maintains that the government employees’ salary is higher than the private sector after implementation of the 7th CPC.

“We have semi-skilled workers while private sectors have unskilled labour. Trying to establish the co-relation between the two is not required,” says KKN Kutty, president, Confederation of Central Government Employees and Workers.

“A grade four employee working in a government job hasn’t received enough raise. To their current salary a mere amount of Rs 2,500-3,000 will be added,” says Kutty, who works in the income tax department.
“The calculation of the wages is determined on the basis of the price of 14 commodities, primarily including food items like grains and pulses. In the 7th CPC the price of those commodities has been taken lower than the actual market price.

“The raise is not as it should be,” says Kutty, citing it as a reason for resentment.

A pay commission comes after every 10 years. During their representations before the 7th CPC, Kutty and other central government employees suggested merging dearness allowance (DA) with basic pay, which could give financial benefits to employees. “This was, however, not considered. When we raised the issue, it was said that the commission had already commenced with the work,” he says.

The report prepared on the basis of a study by the Indian Institute of Management-Ahmedabad, calculated the wages by comparing them with the same in the private sector.

“Priority has been given to the corporates in defining our pay scale. It cannot be a prerequisite for our pay scale. The government should have defined our pay scale on the basis of the Aykroyd formula, which reflects the basic average cost of living in the country,” suggests Shiv Gopal Mishra, convener of National Joint Council of Action (NJCA), a platform of several employees unions.

Mishra, who is also the general secretary of All India Railwaymen’s Federation, however, clarifies that 7th CPC is a positive move to boost the economy. “People will start investing in consumer goods like automobiles and electronics, overall pushing the economy,” he says.

Apparently, the CPC is consumer-sentiment driven. It leads to increase in consumption and savings. “When people get more money, it comes back in the system in the form of taxation. Savings will increase… spending will go up,” Arun Jaitley had said while accepting the 7th CPC report.

“There is no sense of excitement among our officers’ group. Though the government has been citing that it will boost economy, we are worried it will raise the inflation rate,” says a senior official in the ministry of agriculture on condition of anonymity.

The CPC is likely to impact the inflation rate. It stood at 5.77 percent in early July as experts warned of a spike in coming months. Still, a good monsoon and improved economy can cushion the inflationary effects.
But civil servants in higher ranks are worried about it.

“The rising consumer demand will not neutralise the inflation rate instead it will stoke the consumer price index. So, until the next pay commission, which will come after 10 years, we will struggle in dealing with the inflation with our current pay package. Inflation eats away minimum wage each year. Therefore, employees at the lower grades will be at the receiving end,” says the senior official.

Vijendra, a grade four employee in the horticulture department of Delhi Development Authority (DDA), says, “I am not happy with the seventh pay commission. Last time we received a hike of almost 50 percent and this year it is somewhere between 14 to 25 percent.”

Meanwhile, the CPC in its report has mentioned that it has attempted to provide wages commensurate with a comfortable living, and it aims to promote efficiency, accountability and responsibility in the work culture.
Vijendra, however, wonders if it possible to create such an environment in the years to come. Clearly, he is hinting that high salary does not guarantee better government services in the coming years.

“The government says they will curb corruption. Is it possible?” Vijendra asks sarcastically.

Via Governance Now
Share:

Simplification of procedure for endorsement of Family Pension entitlement in the PPO of living Armed Force Pensioners-reg

Simplification of procedure for endorsement of Family Pension entitlement in the PPO of living Armed Force Pensioners-reg
No.1(11)/2014/D(Pen/Pol)
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
New Delhi
Dated: 15th July 2016
To
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Subject: Simplification of procedure for endorsement of Family Pension entitlement in the PPO of living Armed Force Pensioners-reg.

I am directed to refer Gol, MoD letter No.6(4)/87/1369/B/D(Pens/Sers) dated 30.06.1988, which was issued for taking appropriate action for endorsement of Family Pension in the Pension Payment Orders of Armed Forces Personnel. For this purpose an application from “Appendix A” was enclosed along with ibid letter under which details of re-employment, family pension from other sources were required to be filled.

(2) After implementation of Cabinet Secretaries Commitee-2012 recommendations for grant of dual family pension to NOK of Armed Forces Pensioners, the matter was under consideration of this ministry for modification in “Appendix A”. It has now been decided to modify Appendix ‘A‘. The revised Appendix ‘A’ is attached with this letter.

(3) The other terms and conditions for endorsement of family pension in the PPO shall remain unchanged.

(4). These orders issue with the concurrence of MoD(Fin/Pen) vide their ID No.10(16)/2015/Fin/Pen dt. 30th June 2016.

Hindi version will follow.
Yours faithfully,
sd/-
(Manoj Sinha)
Under Secretary to the Government of India
Source : http://www.desw.gov.in/
Share:

LOANS AND ADVANCES – Advances to Government Employees for the Celebration of Marriage – Administration of the Marriage Advance Scheme – Entrustment to the Director of Treasuries and Accounts – Orders – Issued

LOANS AND ADVANCES – Advances to Government Employees for the Celebration of Marriage – Administration of the Marriage Advance Scheme – Entrustment to the Director of Treasuries and Accounts – Orders – Issued


FINANCE [Salaries] DEPARTMENT
G.O.Ms.No.140 G.O.Ms.No.140, Dated , Dated , Dated 13th May 2016.
(Chithirai -30, Thiruvalluvar Aandu-2047)

ABSTRACT

LOANS AND ADVANCES – Advances to Government Employees for the Celebration of Marriage – Administration of the Marriage Advance Scheme – Entrustment to the Director of Treasuries and Accounts – Orders – Issued.

Read:-
1. G.O.Ms.No.234, Finance (Salaries) Department, dated 30-03-1995.
2. G.O.Ms.No.148, Finance (Salaries) Department, dated 13-05-2015.

ORDER:

The Government of Tamil Nadu is granting various interest free and interest bearing advances to its employees. Among them, the following loans and advances are included under Demand 16 – Finance Department:-

Sl.
No.
Name of the AdvanceHead of Account (DPC)Interim BE
2016-2017
(Rs. in Thousands)
1.Conveyance Advance7610 00 202 AA61,00,00
2.Computer Advance7610 00 204 AA20,05,00
3.Other Advances:-
i.Warm Clothing Advance7610 00 800 AB 020630,00
ii.Education Advance7610 00 800 AB 220440,00
iii.TANSI Advance7610 00 800 AB 38015,00
iv.Khadi Advance7640 00 800 AB 40061,70,00
v.Handloom Advance7610 00 800 AB 410425,00,00
4.Marriage Advance7610 00 800 AC 010650,00

Except Marriage Advance, all other advances are administered by the Director of Treasuries and Accounts.
2) In respect of Advances administered by the Director of Treasuries and Accounts, funds are allocated based on requirement from the Heads of Department / District Collectors. Whereas, in the case of Marriage Advance, sanction is accorded for notional allocation of funds to Heads of Department / District Collectors without knowing the actual requirement. This kind of fund allocation led to under utilization of funds by certain departments / districts and pendency of application for want of funds in some other departments / districts. Consequently, the huge surrender of funds occurred resulting to adverse remarks from the Accountant General (A&E).

3) The Government, after careful examination, has decided to streamline the administration of the Marriage Advance scheme. Accordingly, Government direct that the administration of the Marriage Advance Scheme be entrusted to the Director of Treasuries and Accounts as in the case of other advances listed above and issue the following orders:-
(i) The Director of Treasuries and Accounts shall be the administrator of Marriage Advance Scheme from the year 2016-2017;
(ii) The funds provided in the Budget Estimate 2016-17 under the Head of Account ‘7610 00 800 AC’- included in Demand 16 – Finance Department, shall be allocated to the Heads of Department and District Collectors based on requirement;
(iii) The Heads of Department and District Collectors shall send their requirement to the Director of Treasuries and Accounts and get funds for sanctioning Marriage Advance to the Government employees under their control as in the case of other advances;
(iv) The Director of Treasuries and Accounts shall be the Estimating, Recounciling and Controlling authority for the head of account 7610 00 800 AC;
(v) The Heads of Department and District Collectors shall follow the existing Government Orders and instructions governing the sanction of Marriage Advance;
(vi) The Director of Treasuries and Accounts shall follow the usual procedures for allotment of funds as applicable to other advances; and
(vii) The Director of Treasuries and Accounts shall issue instructions to Heads of Departments/ District Collectors on modalities for seeking funds to sanction Marriage Advance.
(By Order of the Governor)
K.SHANMUGAM
ADDITIONAL CHIEF SECRETARY TO GOVERNMENT
Tamilnadu State Government Order
Share:

Revision of Pension: NC/JCM writes to Cabinet Secretary reg


Secretary Staff Side,NC/JCM’s writes to Cabinet Secretary reg. revision of pension

Ph: 23382286
National Council (Staff Side)
Joint Consultative Machinery
For Central Government Employees
13-C, Ferozshah Road, New Delhi-110001
E mail: nc.jcm.np@gmail.com
No.NC/JCM/2016
Dated: July 16,2016
Hon’ble Finance Minister,
Ministry of Finance
(Govt of India )
North Block
New Delhi
Respected Sir,

Sub: Revision of Pension
This issue of acceptance of Option-I (or) II was discussed with your good self at the residence of Hon’ble Home Minister (Government of India), Wherein Hon’ble Minister for Railways and Hon’ble MOSR were present, by the Staff Side National Council (JCM). You had categorically agreed on our demand that, no dilution would be made in the options given to the Pensioners by the VII CPC. It is unfortunate that, a rider, “subject to feasibility”, has been imposed in Option-I.

Sir, this is very unfair and we will appreciate if you kindly get the sentence “subject to feasibility” removed from that para to keep your promise also. It should be left to the Pensioners that whatsoever option they want to choose, they should be allowed to Opt. The argument of non-availability of record is misleading and should not be given any cognizance because PPOs of the Pensioners are the base record and is available with the organizations concerned.

We earnestly seek your urgent intervention in this regard to avoid unnecessary hardship to millions of Pensioners.

With Kind Regards!
Sincerely yours,
sd/-
(Shiva Gopal Mishra)
Secretary (Staff Side)
Source: http://ncjcmstaffside.com/
Share:

Rs 100 crore released towards Government of India co-contribution in Atal Pension Yojana

Rs 100 crore released towards Government of India co-contribution in Atal Pension Yojana

Atal Pension Yojana is being implemented through the APY Service Providers comprising of Public Sector Banks, Private Sector Banks, Regional Rural Banks, Cooperative Banks and Department of Post both in urban and rural areas across the country. The total number of subscribers registered under APY as on 30th June 2016 has crossed 30 lakh and every day nearly 5000 new subscribers are added.

The scheme provides for a co-contribution from Government of India for those who have registered before 31/3/2016 with an amount of 50% of the subscribers contribution up-to a maximum of Rs. 1000/- and these subscribers will be eligible for co-contribution for a period of 5 years from 2015-16 to 2019-20. Only those subscribers who are not income tax payers and not part of any other social security schemes are eligible for Government of India co-contribution. Keeping in view the above, Government of India through PFRDA has released co-contribution for the FY 2015-16 for 16.96 lakh eligible subscribers amounting to Rs. 99.57 crores. The Subscribers who have any pending contributions in their APY account till March 2016 won't be paid with co-contribution. They have been advised by PFRDA to regularize their APY account so as to get Government of India co-contribution in the month of September. Government of India co-contribution is payable only when accounts are regular and the admissible Government of India co-contribution is paid into the Savings Bank account of the Subscribers.

Atal Pension Yojana, provides minimum guaranteed pension ranging between Rs. 1000/- to Rs. 5000/- per month for the subscriber from the age of 60 years. The Same amount of pension is paid to the spouse in case of subscriber’s demise. After the demise of both i.e. Subscriber & Spouse, the nominee would be paid the pension corpus. There is also option for Spouse to continue to contribute in APY account of subscriber for balance period, on premature death of subscriber before 60 years, so that pension can be availed by Spouse. Also, if the actual returns on the pension contributions during the accumulation phase is higher than the assumed returns for the minimum guaranteed pension, such excess returns are passed on to the subscriber, resulting in enhanced scheme benefits.

PIB
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