A complete reference blog for Indian Government Employees

Wednesday, 18 November 2015

Report of 7th pay panel may not be having satisfying recommendations

Report of 7th pay panel may not be having satisfying recommendations:
 
 
7th pay commission is going to submit its report on 20th November 2015 and 15 % hike is recommended
 
Report from news circle says that 7th pay commission is going to submit its report on 20th November 2015 and 15% hike is recommended
 
After submission, it is believed that the outcome of 7th cpc recommendation will be unexpected and disappointment for bapus as Central Government deliberately influenced the Pay commission to be cautious about upward revision of pay and allowances of govt servants.
 
When the commission itself was ready to submit the report in stipulated time initially, the Central government gave four months extension upto December 2015.
 
 
The reason cited by Federation leaders for the extension was ‘ NDA government didn’t want to put itself in a mess before Bihar Election, because the Recommendation will not fulfil the expectation of Govt servants. The NDA government felt that disappointed central government employees may protest over 7th pay commission recommendation if it does not meet their expectation which , it felt, may reflect in Election Results. So the Central Government decided to postpone the date of submission of the report after the Bihar election.
 
 
But unexpectedly the NDA has failed to yield fruitful results in Bihar election. Now opposite parties found the reason to be united against the NDA Government, since the election result gave them faith and beleif to over power the NDA in coming elections.’
 
 
Further they added, “The winter session of Parliament going to start from 26 November 2015, opposite parties waiting to stall the proceedings of Parliament based on handful of sensitive issues which will be a bitter experience for NDA government.
 
 
So submission of 7th pay commission report before the winter session of parliament may help the govt to divert the attention of media and public from the sensitive issues”.
 
 
The Pay Commission, if it followed the methods adopted by previous pay commissions to compute the increase to be recommended for revision of pay and allowances of government servants, minimum 40% increase can be recommended.
 
 
But According to the Medium-Term Expenditure Framework Statement tabled by Finance Minister Arun Jaitley in Parliament said
 
“The salary outgo of central government employees will go up by 9.56 per cent to Rs 1,00,619 crore in current fiscal.
The pace will increase further in 2016-17 at 15.79 per cent to Rs 1.16 lakh crore with the likely implementation of the 7th Pay Commission award”
 
So there are two possibilities for calculating Fitment Formula
 
 
1. As per the Finance Minister Statment the increase will be 15 %
 
2. All the Fedrartion demanded for 40 to 60 % hike, but minimum 30 % increase is expected.
 
 
Accordingly The Fitment formula for the above two estimates are worked out below
 
Present DA = 119%
Expected DA from from January 2016 =6%
Total Da =125 %
 
DA has to be neutralised to arrive Revised Pay from 1.1.2016, if so Multiplication factor will be 2.25
 
If 30% increase is recommended-
 
The Fitment formula = 2.25 + (2.25×30/100)  = 2.92
Minimum Basic will be Rs.7000 x 2.92 = Rs.20440
 
If 15% increase is recommended-
 
The Fitment formula = 2.25 + (2.25×15/100)   = 2.58
Minimum Basic will be Rs.7000 X 2.58 = Rs.18060
 
Minimum Pay to be recommended according to the above estimates by 7th Pay commission will be either Rs.20000 or Rs.18000
 
 
How ever both of the above figures will not satisfy the central government employees since the increase is not going to match their expectation. We have to wait to know the exact increase recommended by 7th pay commission till the date of the report is made public.
Read at: GServant
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Tuesday, 17 November 2015

Allotment of berths under physically handicapped quota – Railway Board Order

Allotment of berths under physically handicapped quota – Railway Board Order

GOVERNMENT OF INDIA (Bharat Sarkar)
MINISTRY OF RAILWAYS (Rail Mantralya)
(RAILWAY BOARD)
No.2012/TG-I/20/P/Handicap
New Delhi, dated 16.11.2015
Chief Commercial Managers,
All Zonal Railways
General Manager,
PRS/CRIS, Chanakyapuri,
New Delhi.

(Commercial Circular No. 67 of 2015)

Sub: Allotment of berths under physically handicapped quota.

As per extant instructions, handicapped quota of 2 berths in sleeper class (one lower and one. middle) is earmarked for physically handicapped persons travelling on concession.

1. There are two types of handicapped persons who can book berth under this quota; one for whom it is compulsory to travel along With escort and the second for whom it is optional. Recently instances were brought to the notice of this office where the handicapped persons for whom it is optional to. take an escort were not allowed to book single berth against this quota by some Railways since the second berth will go vacant as middle berth cannot be allotted to physically handicapped persons. This issue was also raised in Court of Chief Commissioner for Persons with Disabilities.

2. The matter has been accordingly examined and it has been decided. as under:-
(i) There will be two types of handicapped quota of two berths each (one lower and one middle) in the same cabin; one for physically handicapped persons who can utilize concession only when accompanied by an escort and the second for those handicapped persons for whom it is optional to take an escort with them.

(ii) As for the former category it is compulsory to be accompanied by an escort, these berths can be booked by such category of handicapped persons booking tickets on concession on first come first serve basis.

(iii) For the later, where. it is optional to be accompanied by an escort, if the first handicapped person intends to book berth along with escort, both the berths will be booked. However if the first handicapped person books without escort, the second berth will not be booked under handicapped quota and will be released to RAC/waitlisted passengers at the time of preparation of reservation charts.

(iv) Further, at the time of preparation of reservation charts, the unutilized lower berths under this quota can be released to physically handicapped passenger(of either category who were kept in general waiting list due to-exhaustion of their quota), single senior citizen travelling alone on priority and thereafter to waitlisted passengers as per priority. In case a single berth. i.e. middle berth is left vacant in this quota of second category it will be released to RAC/waitlisted passengers.

(v) It has also been decided that whenever a physically handicapped person books ticket on concession and if no berth is available in handicapped quota, the system will automatically try to allot he lower berth to him/her and middle berth to escort subject to availability of same at the time of booking

(vi) CRIS will make necessary modifications in the software at the earliest but not later than 22.12.2015 under intimation to all Zonal Railways as well as to this office.
3. Necessary instructions may be issued to all concerned. After provision of this facility by CRIS, wide publicity to above changes may be made for information of general public.
sd/-
(Sanjay Manocha)
Dy. Director Traffic Commercial (G)-II
Railway Board
Authority : http://www.indianrailways.gov.in/
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Impact of 7th pay commission very different from last one

Impact of 7th pay commission very different from last one

With investments sluggish and unlikely to pick up for another year or two, many are now betting on a recovery in consumption demand to bump up GDP. The feeling is falling interest rates will prompt purchases of homes and cars, and that central government employees could turn out to be big buyers once their bank accounts have been credited with funds following the recommendations of the 7th Pay Commission. Savings to households from lower prices of oil are expected to free up cash for discretionary spends while a higher MSP (minimum support price) for wheat, if that happens, will boost farm incomes.

However, for a variety of reasons, the rise in consumption-demand this time around may not quite match the spurt seen when the 6th Pay Commission’s recommendations were implemented. As Kotak Institutional Equities points out, the economic environment at the time—the report was implemented in 2008 but effective from January 2006—was far less challenging than currently and there were many other factors that contributed to the surge in consumer demand, none of which is present today. Halving of excise duties—from 16% to 8% between February 2008 and 2009—allowed auto firms to drop prices, and a 425 bps cut in the policy rate in a span of just seven months made money significantly cheaper. Both moves were part of a stimulus package meant to revive demand after the global financial meltdown and resulted in a fall in product prices; the cost of a Maruti Swift, for instance, fell from R6.4 lakh to R5.6 lakh or by around 12%. That apart, the rural economy at the time was in far more robust shape than it is today with farm incomes rising sharply over FY05-13 driven by the MNREGA and big hikes in MSPs; the hike in MSPs for both seasons of FY09 was particularly steep given the elections were round the corner. As such, rural India was a lot more prosperous than now with real rural wages barely growing.

Moreover, consumer confidence was reasonably high as private sector investment, which rose steadily after 2004 and peaked in 2008 at 14% of GDP, had created a lot of jobs. Today, private sector investments are at 15-year lows and corporate cash flows are crimped with most companies highly leveraged. Given the far more difficult environment today, it would be unwise to expect an impact of similar magnitude on consumption demand from pay hikes following the 7th Pay Commission’s recommendations. To be sure, the impact would also depend on the quantum of the hike — the last time around, there was a total increase of 120% between FY06 and FY11, translating into a compounded annual increase of 17%, including R44,000 crore of arrears. Even if the pay hikes are as generous, since there will be no great delay in implementation, there will be no major piling up of arrears. Given that the overall environment will not be as conducive as it was at the time of the 6th Pay Commission, it is unlikely the 7th Pay Commission will pull consumer sentiment up enough to give the economy the boost it needs.

Source: PAlegacy
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7th Central Pay Commission likely to submit its final report on November 20

7th Central Pay Commission likely to submit its final report on November 20

NEW DELHI: The 7th Central Pay Commission is likely to submit its final report to finance ministry on November 20 which is due for implementation from January 1, 2016.

More than 48 lakh serving central government employees and 54 lakh pensioners will be impacted by the 7th CPC which is likely to recommend an average hike of 15%, said a source.

The 900-page report is believed to have made suggestions on parity of 36 organized Group A services with the IAS which has so far largely dominated in superior positions in the central government.

The pay panel was constituted in February 2014 and was asked to submit its report within 18 months. However, in August the government gave the panel four months extension to submit its report by December.

Its recommendation will guide how the salary and various allowances of central staff will be revised besides improving their service condition. The report would also impact all the public sector employees and central autonomous bodies which generally make corrections as per the hikes given to the central staff.

Even before the report was finalized there was intense lobbying seen where all the 36 organised Group A services petitioned the commission seeking parity with the IAS and determination of central postings based on merit.

The IAS officers too had sent their individual dissention notes to department of personnel and training and the cabinet secretariat besides the pay panel demanding that their edge and superiority be maintained.

One of the demands of the Group A services is to change the composition of the Civil Services Board which is responsible for central staffing. As of now this is dominated by IAS officers and has no representation from any other service. The pay panel may recommend changes that would ensure level playing field for all officers of Group A services.

Source: TOI
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Monday, 16 November 2015

7th Pay Commission: Central government employees deserve pay raise

7th Pay Commission: Central government employees deserve pay raise

Justice-A-K-Mathur_7thCPC New Delhi: A central minister thinks most central government employees are good workers – and they deserve a pay raise and advocated to implement Seventh pay commission for them from next budget.

The minister wouldn’t say whether he agrees with the central government proposal not to merge 50 percent dearness allowance (DA) after its hiked to 100 percent, but he did say central government employees should not lose ground as inflation erodes their salaries.

“We realised that government employees are upset as it is becoming difficult for them to manage their household expenses with the high inflation rate. They protested against us not to merge 50 percent dearness allowance with basic pay before implementation of Seventh Pay Commission,” the central minister told us, requesting anonymity.

“People that work in the central government, I find they’re hard working, they care about their country, they are patriotic, they do a good job” the minister said.

It is also time to stop demonizing central government employees and to encourage them, he said, the recommendations of Seventh Pay Commission for central government employees will be implemented in the next financial year.

The Seventh Pay Commission, headed by Justice A K Mathur, was appointed by the previous UPA government in February 2014 for 18 months. Its terms was extended in August 2015 by four months till December 31, 2015. The recommendations of the commission would be implemented from January 1, 2016.

The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.

Besides pay hikes, the  Pay Commissions recommend to hike medical benefits, House rent allowance, transport allowance and other allowances for central government employees.

As part of the exercise, the Commission holds discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services.

Pay Commission was ready to submit its report by the end of September but government gave nod to submit its report till December 31.

According to the Minister, the reports of Seventh Central Pay Commission may be implicated from April next year and Finance Minister Arun Jaitley will get the pay panel reports shortly.
TST
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7th CPC Issues and Expectations of Central Government Employees


7th Central Pay Commission Issues and Expectations of Central Government Employees

Every ten years, the Central Government of India sets up a Central Pay Commission (CPC) to revise the pay scales of its employees. Since these pay scales are largely adopted by state governments as well, they influence the income of millions of households.

During 2013, time seemed to be running out for the constitution of the next Commission before the beginning of the election cycle. But on September 25, 2013, a week before the election-related Code of Conduct became effective, the government set up the Seventh Central Pay Commission. This commission will review and revise the salary and pensions of 50 lakh (5 million) or more Central Government employees. Now that it is constituted, the Commission will most likely be able to implement its recommendations by the scheduled date of January 1, 2016.

Duties of the Seventh Central Pay Commission

On Feb 28, 2014, the Cabinet approved the terms of reference of the 7th CPC. The CPC is expected to suggest a merger of 50% of DA (daily allowance) with basic pay, which would increase the gross salary of Central Government employees by around 30%. The Cabinet has approved an additional 10% DA over the existing 90% admissible DA, effective January 1, 2014. This increase would be paid in cash after the disbursement of March salary. The 7th CPC is required to submit its recommendation within a year and a half of its date of constitution.

Major issues to be resolved

1. Pay Parity between IAS & other government services: Hundreds of letters are sent by IAS officers to the concerned government officials apprehending that the seventh central pay commission may try to restore parity between different government services in terms of compensation and career progression. It is to be seen how 7th CPC and government deals with this crucial issue.

2. Pay parity with private sector: Central services have demanded to every pay commission to create parity with the officers of private sectors and make their salary structure comparable to later.

3. Retirement age: There is no denial of the fact that working efficiency of an employee is influenced by the increasing age but experience often weighs heavily over the age factor. Even then looking at attitude of present government impression is clear that pay commission is signaled to reduce the retirement age of government employees. Whatever circumstantial indications are available it shows that either 33 years of service of 60 years of age (whichever is minimum) is likely to be recommended. If media reports have ant substance of truth, under performers may be asked to opt for voluntary retirement after reaching the age of 55 years.

4. Pay gaps between least & highest paid employees: In 1947, gaps in salary between lowest and highest paid government employee was in the 1:41 ratio that got reduced to 1:12 by subsequent pay commissions. It has to be observed whether this gap is widened or reduced by the 7th CPC.

5. Continuing with grade pay system? It would be interesting to note whether 7th CPC continue grade pay system or adopts old pay scale system. As per reliable sources, grade pay system will not longer exists in 7th CPC structure. A table is circulating in the media predicting projected pay scales believed to be suggested by 7th CPC.

What are the hottest rumors?
1. Central Government is willing to merge 50% DA with basic pay with effect from 1.1.2015 – All Government employees would be happy if it has happened,
2. Age of Retirement will be determined based on completion of 33 Years of service or at the age of 58/60/62/65 Years (depending on existing retirement age in various departments) whichever is earlier.

Members of the Seventh Central Pay Commission
Chairman – Ashok Kumar Mathur (Former Supreme Court Justice and Former Chairman, Armed Forces Tribunal)
Full time member – Vivek Rae (oil secretary)
Part time member – Rathin Roy (Director, NIPFP)
Secretary – Meena Agarwal (OSD, Department of Expenditure)
Latest update
  • Union Cabinet chaired by PM on August 26, 2015 gave its approval for extension to 7th CPC to submit its report by the end of December 2015.
  • As per reports in media, 7th CPC is likely to maintain status quo on the retirement age. However, some unconfirmed sources didn’t rule out the possibility of a suggestion from Pay Commission to the government that the earliest of either 33 years of service length or 60 years of age may be considered as a criteria for superannuation of central government employees.
  • Recommendation for pay hike is likely to be low after merging the existing basic pay and dearness allowances. Merging the both component mean 155% rise and adding 25-35% extra makes it 1.8 to 1.9 times in terms of basic to basic.
  • Grade Pay is likely to be abolished by 7th CPC and gaps between pay scales may widen and hence 7th CPC scale may some what follow the earlier pay formats (as in 3rd, 4th or 5th CPC)
  • Government may not risk any adverse effect of disclosures related to pay recommendations on election prospects in upcoming Bihar elections.
Implementation Dates of Previous Pay Commission Recommendations
January 1, 1986 – 4th Pay Commission
January 1, 1996 – 5th Pay Commission
January 1, 2006 – 6th Pay Commission

The Pay Commission Process
Implementation of a Pay Commission’s recommendations always leaves behind a few anomalies for the next commission to resolve. Making recommendations for pay revision is a long process, involving discussion with various organizations, submission of demands by representatives of unions and associations, and evaluating the potential financial impact of these demands on the national exchequer. Representatives of various organizations are asked to make presentations. The Pay Commission examines service conditions, pay, and perks given to employees.

All the earlier Commissions set up to revise the pay of Indian Central Government employees—except the 6th CPC—took more than three years to submit their report. The Sixth Pay Commission submitted its report within just eight months. Nevertheless, such a quick turnaround cannot be taken for granted for future Pay Commissions, since the timing of report submission and the nature of the recommendations are influenced by political and economic considerations.

Rationale for the Seventh Pay Commission
The constitution of the Seventh Pay Commission is justified for the reasons listed below.
  • Daily Allowance (DA) has already exceeded 100% of basic pay, and it cannot be merged with basic pay due to the recommendations of the 6th CPC.
  • Since the wages of some categories of non-government employees are revised at intervals of less than ten years, wages should be revised every five years for central government employees also.
  • Prompt pay revision of Central Government employees will help reduce the increasing disparities between Central Government employees, public sector employees, bankers, and private sector employees.
    How much increase in salary is expected after 7th CPC implementation
Other expected tasks for the 7th Pay Commission include resolving anomalies created by the 6th CPC and addressing bonuses and problems related to the new pension program. All sections of employees will get an opportunity to present pay-related problems to the new Pay Commission and request redress of their grievances.

A new demand gaining support is constitution of a National Pay Panel that will make recommendations for all employees of the country. Since most of the states have adopted for their own employees the pay structure suggested by the 6th CPC for Central Government employees, uniform recommendations would remove discrimination between state and central employees. Recommending a uniform wage structure for each and every employee of India would also reduce pay disparities between private, public and autonomous organizations.

My poll indicates that 39% believe that Central Government employees are likely to get a threefold raise in salary. This is consistent with what was done in the past by earlier pay commissions. Given the existing trend in DA increase, salary may increase 2.3 times by the implementation date of the 7th CPC. Projected pay scales under this assumption are shown below.

Projected Pay Scales (After Implementation of the 7th CPC)

Projected 7th CPC Pay Structure

A projection based on media report is reproduced below. However, a fake report in the name of 7th CPC is also being circulated in the media by some miscreants. 7th CPC has been granted extension by the Government of India to submit it report by the end of December 2015. It would be clear after the submission of report by 7th CPC what content it has submitted to the ministry for acceptance. Further, each and every point in the report will be examined by the cabinet and approved after considering all the implications. Till then enjoy and go through the speculations made by experts.

7th_pay_commission_pay_scale

7th CPC as per some media reports has eliminated grade pay system and recommended pay scales similar to earlier pay commissions.

A better way to get rid of corruption in public life than across-the-board increases would be to legalize a commission on services by each and every employee. This would also help improve the productivity of private sector employees. In some private or autonomous banking institutions, for example, employees are paid a reasonable percentage for accomplishments such as encouraging customers to open more accounts.
Wage revision is expected for Central Government employees effective January 1, 2016. The newly constituted Pay Commission will get two years to review the existing wage structure and suggest a new one, to meet the expectation of employees, and also to increase efficiency at work at a pace with the growth in the economy.

The Seventh Pay Commission needs to introduce more parity into the pay structure of various sectors. Employees in all departments have been vested with more responsibilities, but their pay structure still belongs to the British period. People serving in the police and armed forces have very low salaries although their duties have become enormously more challenging. Government should increase the compensation to its officers for any service-related casualty. Police forces working under adverse conditions and in remote areas must be paid high wages and good benefits so that more people join these organizations.

The new pension system implemented based on the recommendations of the 6th CPC needs to be revisited and reviewed by the 7th CPC, since the adequacy of fund management depends on market forces and the capabilities of fund managers. The 7th Pay Commission needs to take some vigorous action, based on discussions with trade unions, to come out with a more amicable solution for the new pension scheme.
These are some of the things people genuinely expect from the government, but time will tell how much people get from the CPC.

Source: Hubpages.com
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7th Pay Commission Minimum Pay 21000 and Fitment Formula from 2.86 to 3.15

7th Pay Commission Minimum Pay 21000 and Fitment Formula from 2.86 to 3.15

“There is a possibility of 7th CPC to submit its report on 20th November 2015 or 23rd November 2015 , but the report will not be to your expectations, The minimum wage taking into prices published by the Government of India shall come to Rs 26,000/-, considering the existing retail prices the minimum wages works out to Rs 28,000/- and fitment formula shall works out to 4.00 , but the minimum wage may be around Rs 21,000/ against the justified demand of Rs 28,000/- the fitment formula may be from 2.86 to 3.15 , also many other important demands of five promotion policy, Increment rate increase, retirement issues, pension issues etc.

We have to wait and watch the 7th CPC report will the 7th CPC accept the staff side demands or not.”

Observance of All India protest day on 19th November 2015 & 7th CPC to submit its report shortly

Comrades
The Confederation and NJCA had given call for holding protest meetings from 2ndNovember 2015 to 6th November 2015 and also Observance of All India protest day on 19th November 2015 in respect of following demands.

Charter of Demands
1. Effect wage revision of Central Government employees from 1.12014 accepting the memorandum of the staff side JCM; ensure 5-year wage revision in future; grant interim relief and merger of 100% of DA. Ensure submission of the 7th CPC report with the stipulated time frame of 18 months; include Grameen Dak Sewaks within the ambit of the 7th CPC. Settle all anomalies of the 6th CPC.

2. No privatisation, PPP or FDI in Railways and Defence Establishments and no corporatisation of postal services;

3. No Ban on recruitment/creation of post.

4. Scrap PFRDA Act and re-introduce the defined benefit statutory pension scheme.

5. No outsourcing; contractorisation, privatization of governmental functions; withdraw the proposed move to close down the Printing Presses; the publication, form store and stationery departments and Medical Stores Depots; regularise the existing daily rated/casual and contract workers and absorption of trained apprentices;

6. Revive the JCM functioning at all levels as an effective negotiating forum for settlement of the demands of the CGEs.

7. Remove the arbitrary ceiling on compassionate appointments.

8. No labour reforms which are inimical to the interest of the workers.

9. Remove the Bonus ceiling;

10. Ensure five promotions in the service career.
We should not let down our struggle path I once again request one and all to participate in the All India protest day on 19th November 2015 at all places including the districts and send me the photos of protest meeting to publish on COC Karnataka website and this will send information to the Central Government on our demands.
Comradely yours
(P.S.Prasad)
General Secretary
Source: www.karnatakacoc.blogspot.in
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