7th Pay Commission: Government mulling over hike in pay without arrears

7th Pay Commission: Government mulling over hike in pay without arrears
Government is mulling an increase in the hike in pay to central government employees beyond 7th pay commission recommendations, a top Finance Ministry official, who did not wish to be named told The Sen Times here today.

Government will come out with a decision in this regard soon after consulting finance experts and weighing its pros and cons, he said.

Government is now considering to make only pay hike for its employees.

"The financial advisers of the government believe it could be tough to give arrears of the hike in pay as the government has been worried after the April-June GDP growth slipped to a three-year low of 5.7 percent but government believes it will bounce back in the second quarter. Among others, it observed that this year's fiscal math is already stressed as public spending was front-loaded to offset slower private sector participation and cushion the impact of GST roll-out", he revealed.

"All round development is possible only hike in basic pay with fitment factor 3.00 and minimum pay will be raised to Rs 21,000," he said.

The 7th Pay Commission, led by Justice A K Mathur, earlier proposed minimum basic pay from Rs 7,000 to Rs 18,000 per month while the maximum basic pay from Rs 80,000 to Rs 2.5 lakh, which have been paid with arrears, effective from January 1, 2016.

The central government employees unions had expressed their dissatisfaction over the inadequate hike in basic pay in accordance to the pay panel recommendations.

They are demanding for hiking minimum pay Rs 18,000 to Rs 26,000 and the and asked to raising fitment factor 3.68 times from 2.57 times.

Stating that National Anomaly Committee (NAC) headed by Secretary, Department of Personnel and Training (DoPT) has been formed under pressure in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission's recommendations, the official said, "The NAC meeting is likely to be held in October to confirm to hike the basic pay with fitment factor 3.00."

Pointing out that the Finance Minister Arun Jaitley had promised to hike minimum pay after discussions with all stakeholders, he said, "government has made active efforts to fulfill the same".
The proposal of hike in pay is likely to be sent to the Finance Minister Arun Jaitley from NAC, after which it will be placed before the cabinet. Official believes it will come into effect within January' 2018.

TST

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Strike call by nurses federation over pay hike

7th CPC: Strike call by nurses federation over pay hike

GOVERNMENT OF INDIA
MINISTRY OF HEALTH AND FAMILY WELFARE
RAJYA SABHA

UNSTARRED QUESTION NO-4434
ANSWERED ON-11.04.2017

Strike call by nurses federation over pay hike

4434 . Shri Dilipbhai Pandya
Will the Minister of HEALTH AND FAMILY WELFARE be pleased to state:

(a) whether it is a fact that All India Nursing Federation has been demanding for revision of their pay scales and a hike in allowances, if so, the details thereof;

(b) whether Government has taken any decision on their demands; and

(c) the steps being taken by Government to appease the unions of nurses and persuade them to call off their strike?


ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF HEALTH AND  FAMILY WELFARE
(SHRI FAGGAN SINGH KULASTE)

(a) & (b): Yes. Like other Federations/Union, All India Nursing Federation (AIGNF) is demanding better pay and allowances to the Nursing Personnel. Their demands on various allowances such as Nursing allowance, Uniform & Washing allowance, Special Area Allowance etc. payable to Nurses and inclusion in the risk matrix as allowed by 7th CPC to various categories of Government servants has been referred to the Committee on Allowances comprising Finance Secretary & Secretary( Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel & Training, Posts and Chairman, Railway Board as Members.

(c): Consultations/persuasion always made with the representatives of the Union/Federation to avoid strike.

Source: RAJYA SABHA

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7th Pay Commission Pay hike needed more money: FM

7th Pay Commission Pay hike needed more money: FM

New Delhi: Finance Minister Arun Jaitley told lawmakers on Friday that he would need more money in the current fiscal year to cover the cost of 7th Pay Commission Pay hike for 10 million central government employees and pensioners.

The government will require “some enhancement” for spending on salaries and pensions in 2016-17 to absorb the off-cycle pay hikes announced in June on the recommendation of the 7th Pay Commission.

The government faces a challenge to achieve its fiscal deficit target of 3.5 percent of GDP in the current fiscal year, but is “quite optimistic” of fully achieving the target of 3 percent in 2017/18, the finance ministry said in the Medium-Term Expenditure report tabled in parliament’s lower house.

Rating agencies such as Moody’s have said that the increase in wages would boost consumer demand, leading to inflationary pressures and making it difficult for the next governor of the Reserve Bank of India to achieve its inflation target.

Prime Minister Narendra Modi’s government has just confirmed a central inflation target of 4 percent, plus or minus 2 percentage points, that was agreed with departing governor Raghuram Rajan for the next five years.

Total federal spending on salaries and pensions is estimated to rise about 10 percent in the next fiscal year to 2.58 trillion rupees ($38.6 billion) compared with budget estimates for the current fiscal year.

Reuters

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7th CPC arrears to be paid in single installment along with the payment Of salary for the month Of Aug, 2016

7th CPC arrears to be paid in single installment along with the payment Of salary for the month Of Aug, 2016

New Delhi: Government has decided to pay its employees arrears arising from implementation of the 7th Pay Commission recommendations in one go in August salaries.

The government has already notified the 2.57-time hike in basic salary of one crore central government employees and pensioners as per the 7th Pay Commission recommendations. The pay hike has been made effective from January 1, 2016.

In an instruction, the Finance Ministry also said that the revised pay structure effective from January 1, 2016, would include the Dearness Allowance of 125 per cent provided in the pre-revised pay structure. The rate of the first installment of DA under revised pay will be announced later.

“The arrears as accruing on account of revised pay consequent upon fixation of pay under CCS (RP) Rules, 2016 with effect from January 1, 2016, shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, after making necessary adjustment on account of GPF and NPS, as applicable, in view of the revised pay,” said the Finance ministry Office Memorandum
No.1-5/2016-IC today.

In order to expedite disbursal of arrears, the instructions said the “arrear claims may be paid without pre-check of the fixation of pay in the revised scales of pay.”

However, it added, that the facilities to disburse arrears without pre-check of fixation of pay will not be available for those public servants who have retired, resigned or dismissed after the date of implementation of the Pay Commission recommendations.

The minimum pay in central government with effect from January 1, 2016 will now be Rs 18,000 per month, up form Rs 7,000 per month. At the highest level of Cabinet Secretary, the salary would go up from Rs 90,000 a month to Rs 2.5 lakh.

There shall be two dates for grant of increment – January 1 and July 1 every year – instead of the existing July 1 only.

The instruction further said that Income Tax would be deducted before payment of arrears.

PTI

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MPs Demand for 100 Percent Pay hike

MPs Demand for 100 Percent Pay hike

MPs Demand for 100 Percent Pay hike – A joint committee on salaries and allowances of Members of Parliament (MPs) under BJP MP Yogi Aditya Nath has recommended doubling of MPs salaries and perks.

Ahead of the implementation of the 7th Pay Commission, members of Parliament (MPs) have recommended a hike of 100% for themselves, saying they deserve it for their ‘good conduct’.

A joint committee on salaries and allowances of Members of Parliament (MPs) under BJP MP Yogi Aditya Nath has recommended doubling of MPs salaries and perks.

According to an NDTV report, a parliamentary committee has suggested that the salary of MPs be raised from Rs 50,000 to a lakh a month and the constituency allowance be raised from Rs 45,000 to Rs 90,000. If the committee’s proposal is accepted, the total compensation package for an MP will go up from Rs 1,40,000 to 2,80,000.

Samajwadi Party MP Naresh Agarwal had raised the issue of salary hike and said that MPs deserve pay hike for ‘good conduct’ and that many lawmakers were afraid to speak up on the issue.

If free air and rail travel, free housing and other amenities are considered, each MP will cost the taxpayer more than Rs 4 lakh per month, reported Free Press Journal, quoting statistics maintained by the PRS Legislative Research.

The package also includes increasing money for office expenses from Rs 15,000 to Rs 30,000 per month and secretariat assistance from Rs 30,000 to Rs 60,000 per month.

Once agreed and cleared by the finance ministry, the increase in MPs emoluments can put an additional burden of Rs 250 crore on the exchequer. Last year’s allocation had cost the exchequer Rs. 295.25 crore for Lok Sabha Members and Rs 121.96 crore for Rajya Sabha members.

Incidentally, there is no pay commission to look into MP’s salaries and they themselves are entitled to increase their salaries and perks.

This huge increase looks “obscene” to some Left parties MPs, especially in a country where a person spending over Rs 32 a day in rural areas and Rs 47 in urban areas is not considered poor according to the RBI expert panel.

Source: DNA

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7th Pay Commission: Guess who else is going to benefit from Central Government Employees Pay Hike!

7th Pay Commission: Guess who else is going to benefit from Central Government Employees Pay Hike!

It is not just Central government employees eagerly anticipating implementation of the 7th pay commission and take home higher monthly pay package.

Your next-door real estate agent, car dealer and consumer durables seller are also seen gaining from the pay commission hike. According to reports, almost 3.4 crore individuals (employees and pensioners) will witness increase in their incomes, resulting in a multiplier effect on a couple of professions.

Real estate agent: Realty sector is expected to eventually succeed in shaking off the sluggish demand and witness spurt in the sale of houses in tier 1 and tier 2 cities as more than 80 percent of Central government employees lives in these cities

As a result of the foreseen demand, the Reserve Bank of India expects sharp, quick and continuous spurt in the housing index.

Car dealer: With implementation of the 7th CPC, your next door car or two wheeler dealer may rejoice too. The industry expects double digit increase in automobile sales especially two-wheeler, the mini and the compact hatch back segment.

Consumer durables seller: The increase in disposable income will no doubt boost the disposable income leading to increased demand for consumer durables goods like refrigerators, TV etc

Banker: Of course, peaking demand for automobiles, real estate and consumer durable will create demand for consumer loans. The consumer loans section of banks and NBFCs will vie to get the larger share of the indirect gain from the 7th CPC salary hike.

The scenario of crores of potential customers and falling interest rate will announce a win win situation for the banks and consumers both.

Via:  Zee News

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Innovative approach: 50 percent of 7th Pay commission arrears to be invested in bond

Innovative approach: 50 percent of 7th Pay commission arrears to be invested in bond 

The government is considering an innovative proposal under which 50% of increased salary of higher-income government staff under the Seventh Pay Commission will be compulsorily invested in bank capitalisation bonds. The proceeds will be used to recapitalise banks without additional pressure on the fiscal.

While this will result in less cash in the hands of higher-income employees, as a sweetener they will get income tax rebate on the amount invested. Those wanting to invest more than 50% to save tax will be allowed to do so. The Bank Recapitalisation Scheme, as this proposal is being called, will be voluntary for employees with lower salaries (those in the Rs 5,200-20,200 bracket) and pensioners.

A finance ministry official confirmed that preliminary discussions around this proposal were held at a meeting on A finance ministry official confirmed that preliminary discussions around this proposal were held at a meeting on Thursday, but no decision on its implementation was taken. “The issue was discussed. We are looking at all options,” he said.

“The proposal entails that through a provision under Income Tax Act, tax rebate should be offered to all employees receiving extra salary income through pay commission in the year 2016-17 and 2017-18, provided the money is invested in this Bank Recapitalisation Scheme,” added the official.

The government will have to additionally shell out Rs 40,000-50,000 crore annually on account of implementation of the seventh pay commission recommendations with effect from January 1, 2016. If this proposal is accepted, a portion of this money will be used to capitalise banks. According to finance ministry estimates, state-run banks will require Rs 1.8 lakh crore of additional capital in the next four financial years, of which Rs 70,000 crore will be provided by the government.

The government has budgeted Rs 25,000 crore for bank capitalisation in the current fiscal. While the government has said it has made adequate provision in the Budget to cover the extra spending on account of the pay commission recommendations, analysts reckon it is not adequate and full implementation of award will make it difficult to achieve the fiscal deficit target of 3.5% of GDP.

“Increase in government employee wages and pension expenditure on account of seventh pay commission recommendations is not fully provided for in the Budget,” Morgan Stanley had said in a report.

The proposal currently under consideration gives the government the leeway to meet both its pay commission and bank capitalisation commitments without putting the fiscal deficit target under threat. Bonds will provide the exchequer some wriggle room. The payment will become due when bonds mature, leaving the government with only the interest payment liability in the current fiscal.

The flip side is that the proposed scheme could annoy government employees expecting a greater take-home pay. Hence the scheme has a tax exemption lollipop.

A second government official said this amount will be used to recapitalise banks through a special bank capitalisation fund that will invest in perpetual non-redeemable preference shares issued by banks. Banks will pay 5.1% dividend that is also proposed to be exempted from the dividend distribution tax. The fund will in turn pay 5% interest to government employees, retaining 0.1% as administrative charge.

“This interest income will also be tax free for government employees,” he said, which will increase the effective yield. The government will eventually pay back the amount in four equal investments after 8, 9, 10 and 11years, spreading the fiscal burden of repayment over that period. It will guarantee payment of 5% interest and repayment of deposits irrespective of whether the banks pay the dividend or not, the official added.

Source: ET

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Central Government Employees fear delay in getting pay hike

Central Government Employees fear delay in getting pay hike

Central government employees are being promised bigger pay and allowances in fiscal 2016-17 as Finance Minister Arun Jaitley said in the Parliament on February 27, “the Seventh Pay Commission impact may have to be absorbed in 2016-17.”

The Finance Ministry and the seventh central pay commission said nothing till date about this after the above announcement was made by Jaitley in his pre-budget speech for fiscal year 2015-16.

Central government employees have expressed frustration at this, and are worried that the the seventh central pay commission’s recommendations might not be come out in time.

After getting pay panel recommendations, the finance ministry will review the recommendation and present the report to the cabinet but the car bazar and real estate markets will attempt to prevent the implementation pay panel in time because of the delayed implementation of the Pay Commission will not only employees getting more arrears but could also drive the car sales and real estate markets.

Earlier, the central government employees got arrears for more than 30 months because of the delayed implementation of the Sixth Pay Commission in October 2008; it’s resulted in robust demand for car loans and house loans. The employees paid margin amount of loans from arrears and instalments from their new hike salaries.

According to Neelkanth Mishra of Credit Suisse, nearly one-third of India’s middle class is employed by the government and as the Seventh Central Pay Commission comes through, there will be an improvement in discretionary spending.

“In Tier 3, Tier 4 towns where government employees are 50-60 per cent of the middle class, it is very likely that real estate markets will take off again,” he said.

If implantation of Seventh Pay Commission occurs in time, then car bazar and real estate markets, will have become sufferers.

So, there are miles to go before the pay panel recommendations will be implemented for Central government employees and fund allocation in the next budget and other issues like pretext of Fourteenth Finance Commission recommendations are expected to prevent implementation of pay commission in time for giving benefit to the car bazar and real estate markets at the cost of central government employees.

However, Union Railways Minister and Home Secretary have sought reforms and a better salaries and allowances for top Railways officials and paramilitary forces respectively.

TST

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Pay hike for government doctors

Pay hike for government doctors

Belagavi (KTK): Karnataka government today announced pay hike in the range of Rs 5,000 to Rs 35,000 to its doctors, with an intention to attract more doctors for government service.

The monthly salary of MBBS or BDS qualified doctors with six years experience has been increased from Rs 54,989 to Rs 59,989, with six to 13 years experience from Rs 63,620 to Rs 68,620, with 13 to 20 years experience from Rs 73,569 to Rs 78,569 and with 20 years from Rs 87,649 to Rs 92,649.

The hike is effective today, Health Minister U TKhader said making the announcement in the Assembly.
Khader said for doctors with post graduate degree or diploma qualification with 6 years experience, the pay has been increased from Rs 59,780 to Rs 84,780, with 6-13 years experience from Rs 70,166 to Rs 95,166 and with 13-20 years experience from Rs 87,919 to Rs 1,12,919.

For Super Speciality Doctors with 6 years experience, the pay has been increased from Rs 62,980 to Rs 92,989, with 6-13 years from Rs 72,466 to Rs 1,02,466 and those with 13-20 years from Rs 84,319 to Rs 1,19,319.

BJP MLA C T Ravi questioned why pay has not been hiked for Ayurveda Doctors.

“Their salary also should be increased, if not it will lead to discrimination. We will have to support Ayurveda, whole world is turning towards Ayurveda,” he said.

Responding to this, Khader said, “I will look into it.

PTI

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PSU bank employees will soon get pay hike, arrears for 30 months

PSU bank employees will soon get pay hike, arrears for 30 months

Mumbai, May 22:  Employees of public sector banks, old generation private sector banks and some foreign banks will be a happy lot as they will soon get 15 per cent pay hike, arrears for the last 30 months, and other benefits as part of a deal that the unions and bank managements have reached.

Unions, under the aegis of the United Forum of Bank Unions, and bank managements, represented by the Indian Banks’ Association, have worked out a detailed Bipartite Settlement/ Joint Note and the same will be formalised on May 25.

The benefits that about 7.50 lakh bank employees stand to get are a special pay, a new hospitalisation scheme backed up by insurance and holiday on every second and fourth Saturday in a month.

The back wages (arrears) that bank employees will get for the last 30 months will warm the cockles of their heart. Income tax authorities too will be happy as arrears will be taxable.


S Nagarajan, General Secretary, All India Bank Officers’ Association, said “A special allowance has been introduced for employees… there is a new hospitalisation scheme backed up by insurance.” The wage settlement will benefit 3,04,000 odd officers (as on March 31, 2012) in the banking sector.

Officers will get health insurance cover of Rs. 4 lakh and the clerical and sub-staff will get Rs. 3 lakh cover, he added.

A corporate buffer will be created by banks to reimburse hospitalisation expenditure exceeding the above mentioned limits.

Pointing out that the last wage settlement expired in October 2012, Nagarajan, in a lighter vein, observed that “Five years is the tenure of the wage settlement. We have already exhausted 30 months in coming to a settlement. It’s time now to submit the next charter of demands.”

Vishwas Utagi, Vice President, All India Bank Employees Association, said the wage settlement will benefit about 4.50 lakh clerical and sub-staff in the banking sector.

Bank employees will get close a couple of lakh rupees, on an average, as arrears in gross terms, he explained. Since payrolls are computerised, the arrears could be credited to employees’ accounts in a month.

Utagi said the issue of upgradation of pension of retirees and 100 per cent neutralisation of dearness allowance will be taken up by the United Forum of Bank Unions separately.

Read at: The Hindu Businessline

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Double the salaries of Telangana State Government Employees

Double the salaries of Telangana State Government Employees

In a move that will almost double the salaries of Telangana employees, the state government announced implementation of the pay hike recommended by the pay revision commission (PRC) with a fitment of 43%.
Chief minister K Chandrasekhar Rao said at a press conference on Thursday that the pay panel, headed by special chief secretary to the government K Pradeep Chandra, was the first PRC of Telangana.

“Ours is an employee-friendly government. We have recognised the employees’ role in realisation of statehood. The notification of the implementation of pay hike will be issued on Friday which is regarded as goddess Lakshmi’s day,” said the chief minister.

The pay hike, which results in an additional burden of Rs 6,500 crore to the exchequer, will be implemented with retrospective effect from June 2, 2014 – the day Telangana was formed. The chief minister said that the arrears would be deposited in the employees’ general provident fund (GPF) account which fetches 8.5% interest. The revised salaries will reach the employees beginning this March.

The announcement led to jubilation in the Secretariat and employees celebrated by bursting fire crackers. Over 3.5 lakh government staff will enjoy the benefit.

“We thank the chief minister for the PRC implementation. We know this would a burden on the exchequer. We assure that the employees will work hard to enhance revenue for the government,” chairman of Telangana Non-Gazetted Officers’ (TNGO) Association, S Devi Prasad Rao, said.

While the 10th PRC headed by PK Agarwal had recommended 29% fitment in its report submitted in July 2013, Telangana employees demanded 69% and a minimum monthly wage of Rs 15,000.

The government constituted the Pradeep Chandra committee to look into the demands of employees. After several rounds of consultations with representatives of various employee associations including TNGO and Telangana Gazetted Officers’ Association (TGO), the committee recommended the pay hike formula.
The chief minister said that he hurried to announce the new pay since a notification was expected any moment for the state legislative council elections due in March. Once the notification is issued, the government could not have implemented the hike since the poll code will not allow it.

While there is no mention about the demand of the minimum wage of Rs 15,000, the CM said that the PRC would look into pending anomalies in the salary structure. “We hope that this issue would be addressed by the panel and employees will get their due,” said chairman of commercial tax employees’ joint action committee,

T Vivek.

Source: Central Government News

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