Revision of 1/3rd commutation pension i.r.o CPSE/CAB absorbee: Pensioner Portal Order

No.4/30/2010-P&PW(D)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension and Pensioners Welfare

Lok Nayak Bhavan, Khan Market,
New Delhi-110003,
Dated the 28th October, 2013

OFFICE MEMORANDUM

Sub: Revision of 1/3rd commuted pension portion of pension in respect of Government servants who had drawn lump sum payment on absorption in Central Public Sector Undertakings/Central Autonomous Bodies-Implements of Government's decision on the recommendations of the 6th Central Pay Commission.

The undersigned is directed to say that orders have been issued vide this Department's OM of even number dated 11.7.2013 for revision of 1/3rd restored pension of absorbees w.e.f. 1.1.2006 by multiplying pre-revised 1/3rd pension by a factor of 2.26, if it is more beneficial than the revised 1/3rd restored pension as per this Department's O.M. No.4/38/2008-P&PW(D) dated 15.9.2008. These orders have been issued in compliance of the order dated 27.9.2011 of the CAT Hyderabad Bench in OA NO.710/2010 read with their order dated 22.4.2013 in C.P. 26/2012.

2. Representations have been received from the absorbees pensioners, who had taken lump-sum payment in lieu of 100% pro-rata pension on absorption, that the benefit allowed to the absorbee pensioners in terms of
O.M. dated 11.7.2013 is not adequate. These representations have been examined in this Department. The main thrust of these representation is that the 1/3rd restored pension may be revised w.e.f. 1.1.2006 by adding dearness pension and dearness relief as on 1.1.2006 alongwith 40% fitment benefit to the pre-revised 1/3rd restored pension.

3. The matter has been examined in this Department. The instructions for revision of 1/3rd pension were issued by this Department's O.M. No.4/38/2008-P&PW(D) dated 15.9.2008, keeping in view the formula laid down by Hon'ble High Court of Andhra Pradesh in its judgement dated 24.12.2003 which was accepted in Supreme Court judgment dated 29.11.2006 and 24.7.2007.  Hon'ble CAT, Hyderabad Bench in its order dated 27.9.2011 in OA 710/2010 inter-alia observed that the a.M. dated 15.9.2008 was legally sustainable.  However, the Hon'ble CAT directed to pass an order so as to equalize the revised 1/3rd restored pension of absorbees with the revised pension of other Central Government pensioners.

4. Keeping in view the above direction of Hon'ble CAT, Hyderabad Bench, which was upheld by High Court of Andhra Pradesh and Supreme Court, orders were issued vide this Department's C.M. of even number dated 11.7.2013 to revise 1/3rd restored pension of absorbee pensioners to 2.26 times of the pre-revised 1/3rd restored pension. This is explained by the following example:
 Pre-2006 full pension  Pre-2006 1/3rd restored pension Revised full pension (for DR, etc.)  Revised 1/3rd restored pension in terms of OM dated 15.9.2008  Revised 1/3rd  restored pension in terms of OM dated 11.7.2013 
 4073  3173  9207  6492  7173

 The above formula for revision of 1/3rd pension is also in conformity with the demand made by the staff side in the meeting of National Council (JCM) held on 6.11.2012.
  5. In view of the above position, no further change in the 1/3rd restored pension of the absorbee pensioners (who had drawn lump-sum payment of absorption in Central Public Undertaking/Central Autonomous Body) is required to be made. All the representations made by the absrobee pensioners and their Associations in this regard stand disposed off accordingly. All Ministries/All Departments are requested to inform the above position to the absorbee pensioners.
sd/- 
(Harjit Singh)
Deputy Secretary to the Government of India
Source: http://ccis.nic.in/WriteReadData/CircularPortal/D3/D03ppw/PPWD_291013.pdf
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Representations regarding revision of pension of pre-2006 pensioner and issuance of mandatory e-authority by Pay & Accounts Officers: CPAO Order

Government of India
Central Pension Accounting Office
Department of Expenditure, Ministry of Finance
Trikoot-II, Bhikaji Cama Place
New Delhi-110066
CPAO/Tech/Clarification/2013-14/151
22.10.2013 
OFFICE MEMORANDUM 

Subject:- Representations regarding revision of pension of pre-2006 pensioner in the light of P&PW OM No. 38137108-P&PW (A) dated 28th January, 2013 and issuance of mandatory e-authority by Pay & Accounts Officers.

Department of Pension & Pensioners Welfare vide their OM No.38/37/08-P&PW (A) dated- 28.01.2013 has ordered to step-up the pension of pre-2006 pensioners upto 50% of the sum of minimum of pay in the pay band and grade pay corresponding to the pre-revised pay scale from which the pensioner has retired, as arrived at with reference to the fitment tables annexed to the Mb() Finance, D/o Expenditure OM dated-30.08.2008. To facilitate payment of revised pension/family pension a revised concordance table Annexure of the pre-1996, pre-2006 and post 2006 has also been enclosed with the OM dated-28.01.2013. Accordingly, necessary change in e-revision, e-filling utility was made by NIC, CGA to issue e-revision authorities for pre-2006 pensioners vide this office OM No. CPAO/Tech/e-Revision/2013- 14/33 dated-09.05.2013 read with OM No. CPAO/Tech/6th CPC/2013-14/42 dated- 16.05.2013 and issuance of e-revision authority was made mandatory with some exceptions vide this office OM No. CPAO/Tech/e-revision/2013-14/74 dated-26.06.2013.

2. Consequent upon the implementation of issuance of e- authority as mandatory some CAs/ PAOs are raising questions on imperfection of revised e-revision, e-filling utility software. After thorough examination of the orders on the subject, issued by Ministry of Finance and Deptt. of Pensions & Pensioners Welfare, it is observed that some posts in different organizations like Rajya Sabha Secretariat, Deptt. of Space, ITBP, Delhi Police, Assistants belonging to Central Secretariat Service, Stenographers Grade C (PA) of Central Secretariat Stenographer Service etc. were upgraded in the pre-revised scale of posts and were replaced by pay-band with higher grade pay in new pay structure of 6th Pay Commission. But these upgradations were applicable only from 01.01.2006. Obviously, these are not applicable for the pensioners who retired on or before 31.12.2005. This position was clarified by DPPW vide OM No.38/37/08-P&PW dated-11.02.2009. Para 5 of the OM clearly states that the benefit of upgradation of posts subsequent to their retirement would not be admissible to pre- 2006 pensioners.

3. Taking into consideration the above facts, revised e-revision, e-filling utility software has been developed which is perfect one in all respect. Therefore, it is requested to go through the P&PW OM dated-28.01.2013 alongwith the concordance table attached with it and fitment tables annexed to Ministry of Finance, Deptt. of Expenditure (Implementation Cell) OM No.1/1/2008 IC dated-30.08.2008 carefully.

4. If e-utility software shows any discrepancy it is an indication of misfeeding of data, hence required special attention and consultancy of fitment tables as referred above. In this context, some PAOs might have allowed the benefits of upgradation of posts to pre-2006 pensioners also. Initially due to non-availability of 5th CPCs Pay Scales in the software the check which is being applied in the revised e--utility software could not be made -effective. Hence, it is advised to issue the e-authority in all the cases with some exceptions mentioned in this office OM CPAO/Tech/e-revision/2013/14/75 dated-26.06.2013.

5. Earlier, some manual authorities might have been issued in which the benefits of upgradation has been allowed to pre-2006 pensioners also. Hence, a system generated list of revision authorities PAO-wise have been prepared for the convenience of PAOs to sort out the relevant cases for review and issue amendments, if required.

Keeping in view the volume of papers, the list is being sent through e-mail to each Pr.CCA/CCAs/CAs separately. Pr.CCA/CCAs/CAs may further distribute the same among '.their respective PAOs for further necessary action.

6.. In case of any doubt the matter may be referred to Department of Pensions & Pensioners Welfare for further clarification.

This issues with the approval of competent authority.

sd/-
Vijay Singh
Sr. Accounts Officer (Tech.)

Source: http://cpao.nic.in
[http://cpao.nic.in/pdf/cpao_tech_clarification_2013-14.pdf]
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Unorganised workers' body opposes 7th pay commission

AURANGABAD: Opposing the central government's recent decision of setting up seventh pay commission for central government employees, Samajwadi Jan Parishad - a body of unorganised sector workers - today said that the government should rollback the announcement.

The organisation staged demonstrations in front of district collector's office here in the city. Addressing the gathering, its leader and social activist - Subash Lomte - said that the government had obliged only 7% of the total employees in the county working under its umbrella. "But it has nothing to offer to the remaining 93%," he said.

"There several instances where unorganised workers are being paid Rs 2,500 per month despite working for more than seven to eight hours a day," he said. He said that all the unorganised workers' salaries should be at par with class four employees of the central government.

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A Request To Federations regarding COMPASSIONATE APPOINTMENT.

It is the right time to discuss about compassionate appointment because of the announcement of 7 th central pay commission.Compassionate appointment is not like other appointments,it is a thing that gives life to the suffering family without their prime earning head.

Most of the higher level employees (ie Grade A&B) might have their future security plans for their family.But in the case of Group C employees, they may not have any future plans,as their salary used to run their day-to-day life.

Sudden death of employee due to disease or accident is a massive loss to the family.That family might have many commitments like education,marriage of their children , medical expenses of aged parent etc.,For such family, compassionate appointment is the only permanent solution.

Hence the following requests are submitted to the notice of Federations  regarding Compassionate appointment

1  5% ceiling in compassionate appointment should be removed.

2  All the deceased employees legal heir must  get the appointment.

3  Duration regarding appointment should be minimized .

4. If there is no vacancy,the appointment should be made for Future Vacancy.

5   Compassionate appointment might be given to married son like as it is given to married daughter.

6   Welfare officer should verify the situation of the family, yearly once after giving appointment.

7   If any complaints received from other family members against the successor, immediate action should be taken regarding the complaint.

S.Ravi.
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Revision of minimum rates of wages dearness allowance: Railway Board Order

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
RBE No. 109/2013
No. 2011/E (LL)AT/MW/1
New Delhi dated: 24.10.2013
Sub: Revision of minimum rates of wages dearness allowance.

A copy each of orders No. (i) No. 1/11/(3)/2013-LS.II, (ii) No.1/11(4)/2013-LS-II, (iii) No.1/11/(5)/2013-LS.II, (iv) No.1/11/(6)2013-LS,ll and (v) No.1/11/(7)2013-LS.II dated 19.09.2013 revising the rates of variable dearness allowance for contract workers engaged in

(i) Construction or maintenance of roads or in Building operations etc., (ii) stones mines for Stone breaking & Stone Crushing, (iii) loading and unloading operations in railway goods sheds, parcel offices of Railways, (iv) Employment of sweeping and cleaning excluding activities prohibited under the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993 and, (v) employment of watch and ward respectively is sent herewith, for information and strict compliance. The rates are appticabte w.e.f.  01.10.2013

2. Railways, being Principal Employer are required to ensure that the contractors are complying with the provisions of the Contract Labour(R&A) Act, 1970 and Minimum wages Act, 1948  strictly and arranging prescribed minimum wages to the contract laborers.

3. This issues with the concurrence of the Finance Directorate of Ministry of Railways.

Please acknowledge the receipt.

(Madan Lal)
Director Estt. (LL)

D.A.: As above(13 pages)

Source: AIRF https://docs.google.com/file/d/0B40Q65NF2_7UamMzNVJpa0N5OG8/edit
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Upgradation of Grade Pay of LDC & UDC in the Administrative Branch of Government of India Offices: Confederation letter to Govt

CONFEDERATION WRITES TO GOVERNMENT ON LDC- UDC PAY SCALE ANOMALY

CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES & WORKERS 
1st Floor, North Avenue PO Building, New Delhi - 110001 
Website : www.confederationhq.blogspot.com 
Email : confederation06@yahoo.in

Patron    S.K.Vyas 09868244035
President K K N Kutty 0981148303
Secretary General  M.Krishnan 09447068125

Ref: Confdn/LDC-UDC/2013
Dated : 25.10.2013 
To
The Secretary,
Department of Expenditure,
Ministry of Finance,
North Block, New Delhi-110001


Sub: Upgradation of Grade Pay of LDC & UDC in the Administrative Branch of Government of India Offices.

Sir,
This is in reference to the letter dated 14/10/2013 sent to you, on the above subject, by the All India Association of Administrative Staff, Ministry of Statistics & Programme Implementation, Government of India (Copy enclosed).

As you are aware, the implementation of the 6th anomalies. The LDC UDC issue is among the most genuine anomalies for which an agenda had been submitted on behalf of this Federation in the National Anomaly Committee (NAC). So far four meetings of the NAC have been held but had not been able to settle the issue and the 5 meeting wherein several genuine anomaly cases including the LDC-UDC issue have to be discussed and decided has not been convened so far despite of repeated requests of the staff side. In this respect, it is worth to mention here that CS-II section of the DoPT had identified the LDC/UDC issue as anomaly which is the subject matter of JCA section and sent the case to JCA vide DoPT I.D. No.25/2/2013-CS.II (B) Dated 13.08/2013 for action. But it is surprised to note that the case in original has been returned to the All India Association of Administrative Staff by the CS-II section vide letter No 25/2/20134-CS II (B) dated 19/09/2013 with a direction to take up the case directly with the Ministry of Finance, Department of Expenditure. And the reason behind the returning of the case to DoPT without considering to put up it in the NAC by the JCA is not recorded.

It is further to state that 6th get selected to the post of LDC but denied an appropriate pay structure in accordance with the increased qualification. On the other hand, the educational & technical qualifications prescribed for DEO & LDC are the same but the DEO has been granted Rs. 2400 grade pay whereas the Grade pay of LDC is Rs. 1900 only. Moreover, 6th to MTS as a result the gap between the MTS and LDC narrow down to Rs. 100/.

As regards the duties and responsibilities assigned to the LDC & UDC in the subordinate offices are concerned, it is altogether different than the duties and responsibilities for the posts prescribed in the DoPT manual or assigned to these posts in the offices of Central Secretariat. While comparing the duties of DEO & LDC the DEO has only to make entry the readymade data given to them whereas the LDCs have to create data/draft letters and then to type on computer, putting up the matter through file note with justification with the support of rules and procedure. Thus LDC does more work in qualitatively and quantitative terms with less grade pay than that of the DEO. Besides, many cadres with less or equal qualification have been recommended higher pay by the 6th the Government has implemented the same.

Since the duties of the LDC & UDC in the various State Government also assigned in line of these subordinate offices and considering the volume and quality of duties assigned to them several of the State Governments who have implemented the 6th increased the pay structure/grade pay of the LDC & UDC.

From the above it is evident that the LDCs & UDCs deserve higher grade pay than the present one, commensurate with the qualifications and assignments attached to these posts. DoPT has identified the LDC & UDC issue related to anomaly and asked to take up the case with your office. It is requsted that as tens of thousands of LDC, UDC are eagerly waiting for a favourable decision from Govt, the case may be considered in a sympathetic and judicious manner so that a decision for revising the grade pay of LDC to Rs. 2400/ and that of UDC to Rs. 2800/ may please be taken.

A favourable decision in this regard is requested please.

Yours faithfully,

(M. Krishnan)
Secretary General

Copy to: -
Com. T.K. R. Pillai

Source: www.confederationhq.blogspot.in
[http://confederationhq.blogspot.in/2013/10/confederation-writes-to-government-on.html]











CONFEDERATION WRITES TO GOVERNMENT ON LDC- UDC PAY SCALE ANAMOLY

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Minutes of DoPT Meeting by INDWF: 7th CPC Appointment, GP 4600 to MCM under 3rd MACP, 30 Days EL iro Piece Worker, Ex-gratia on Death


INDIAN NATIONAL DEFENCE WORKERS FEDERATION
Minutes of Meeting with Secretary DOP&T held on 24.10.2013 at New Delhi
INDWF/Circular/015/2013
Date: 25.10.2013
To
All Affiliated Unions of INDWF

Indian National Defence Workers Federation continuously representing in various forums and also raised before Hon’ble Defence Minister on the pending issues of Defence Civilian employees.  Now on the following issues, decisions were taken by Ministry of Defence which are as follows.


1. GRANTING OF 3rd MACP UNDER FINANCIAL UPGRADATION TO MCM AND CHARGEMAN
Master craftsman pay was upgraded to Rs.4200/- Grade Pay w.e.f. 01.01.2006 and was clarified by PC of A (Fys) that it was not considered as promotion and accordingly all these MCMs and re-designated Chargeman(T) were granted 3rd MACP on completion of 30 years of service to Rs.4600/-.  Subsequently DOP&T vide their letter dated 13.07.2012 and M of D vide their letter dated 23.07.2013 clarified that their upgradation was treated as promotion thereby denied the MACP – III and conveyed by PC of A (Fys), Kolkatta to recover the payment paid excess from Rs.4200/- to Rs.4600/- Grade Pay. This was strongly protested and represented by Indian National Defence Workers Federation to DOP&T, M of D and OFB to review the decision and grant Rs.4600/- Grade Pay.   The reduction of Grade Pay and recovery was stopped awaiting for the decision from DOP&T.  The recovery was stopped including the reversion from Rs.4600/- Grade Pay to Rs.4200/- Grade Pay in respect of serving employees.

Now, due to our efforts, DOP&T sent back the file to M of D on 14.10.2013 stating that if the MCM is not the feeder grade to Chargeman for promotion as per the existing Recruitment Rules, it may be confirmed and if so the employees completed 30 years can be considered for granting 3rd MACP to Rs.4600/-.  Now M of D had made out the proposal in conformity with SRO that MCM is not the feeder grade to Chargeman and only HS I is the feeder grade and the file was sent to M of D (Finance) for their acceptance and after obtaining clearance from M of D (Defence Finance), formal order will be issued by DOP&T revising its order dt 13.07.2013 and then all the MCMs granted Rs.4600/- under 3rd MACP will be allowed is continue.

This is a major achievement for Indian National Defence Workers Federation in succeeding to get this issue resolved with going to Court.  This will benefit existing employees and the retired employees who got the benefit of 3rd MACP Rs.4600/-.

2. ENTITLEMENT OF 30 DAYS EL IRRESPECTIVE OF OPTION IN RESPECT OF PIECE WORKERS OF ORDNANCE FACTORIES
Piece Workers are denied 30 days EL and were granted only 18 days in a year whereas 30 days EL was granted to all Industrial Employees in defence vide the agreement reached between Government of India and Staff side National Council JCM reached signed on 11.09.1997.   Since, the Piece workers have opted leave under Factories Act, 1948, they are denied the benefit of 30 days.

The issue was discussed at JCM III, II and with DOP&T by Indian National Defence Workers Federation and a proposal was sent to DOP&T through M of D, that one set of Leave Rules (Departmental Leave Rules) is acceptable for all employees and therefore, the Leave Rules under Factories Act, 1948 is to be ignored and the benefit of Leave Rules under Departmental Leave rules be granted to all Industrial Employees in Ordnance Factories.

The above proposal was agreed by M of D, Department of Defence Production to DOP&T and the same was agreed.  Accordingly, Department of Defence Production D(Estt/NG) vide their letter No. I.D.No.8/IR/08/D(Fy-II) dt 25.09.2013/04.10.2013 issued clarification to Ordnance Factory board that all  the employees are now eligible as per the agreement and as per clarification issued by Ministry of Labour for 30 days.  OFB with the approval of PC of A (Fys), Kolkatta is issuing instructions to all Ordnance Factories within 3 days granting 30 days EL which Indian National Defence Workers Federation demanded that the benefit to be granted with retrospective effect i.e. from the date of granting 30 days EL (11.09.1997 agreement).

This is an important achievement of Indian National Defence Workers Federation by which thousands of retired employees will get the benefit of 12 days in a year for encashment.  This may be communicated to the retired employees also.

3. GRANT OF EX-GRATIA LUMPSUM COMPENSATION TO THE FAMILY MEMBERS OF THE DECEASED EMPLOYEES OF ORDNANCE FACTORY ORGANISATION IN CASE OF DEATH A DUE TO ACCIDENTS WHILE ON DUTY.
All Civilian employees of Government of India are entitled for grant of Ex-gratia lump-sum compensation for an amount of Rs.10,00,000/- as per the provisions contained in Para 07 of DOP & W OM No.45/55/97-P & PW(C) dt 11.09.1998 read with para 11 of DOP & PW OM No.38/37/08-P & PW(A) dated 02.09.2008.  There are many employees expired due to accidents in Ordnance Factories has been seriously represented by Indian National Defence Workers Federation President     Shri Ashok Singh also written number of letters to Hon’ble Defence Minister to grant the Ex-gratia Rs.10 lakhs to the affected families though they have been provided employment assistance out of turn.

Now we are pleased to inform that Ministry of Defence, Department of Defence Production vide their letter no.444/IE/05/D/(Fy-II) dt 18.10.2013 issued sanction to Ordnance Factory Board for 30 cases with a total amount of Rs.3 Crores for disbursement immediately to the families of deceased employees.  This will be in respect of Ordnance Factory Bhandara, Cordite Factory Aruvankadu, Ammunition Factory Khadki, Ordnance Factory Khamaria, Ordnance Factory Itarsi and other factories where accidents have taken place.  This is a great achievement.

4.  APOINTMENT OF 7th PAY COMMISSION
On the approach of INTUC, UPA Government agreed to appoint 7th Pay Commission and will be effective from 01.01.2016.  Government invited the Federations (National Council Standing Committee members) for discussing the Terms of reference for the 7th Central Pay commission.  A meeting was held under the Chairmanship of Secretary, DOP& T on 24.10.2013 at 1500 Hrs at North Block on behalf of Staff side we have proposed the following:
a)  Government of India should come out with their proposal on Terms of Reference and then Staff side will give their proposal.
b)  All anomalies pending including MACP to be settled.
c)  One Labour leader to be included in the commission.
d)  All pending cadre Review proposals should be delinked from 7th CPC.

After consulting the Ministry of Finance, the proposal of Draft will be given to us for discussion.

Yours Sincerely, 
(R.SRINIVASAN) 
General Secretary.
Source: www.indwf.blogspot.in
[http://indwf.blogspot.in/2013/10/minutes-of-meeting-with-secretary-dop.html















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Implementation of LARSGESS amongst Railway employees in Gp Rs 1800/-

No.II/34/Pt.9
Dated: 23/10/2013
The Secretary (E),
Railway Board,
NEW DELHI

Dear Sir,

Sub: Implementation of LARSGESS amongst Railway emproyees in GP Rs 1800/-

Federation wishes to bring to the notice of Rairway Board grievance railway employees working on Delhi Division/Northern Railway safety categories (Loco Pilots) and eligible to avail benefit under LARSGESS whose wards had appeared in the Aptitude test of December 2011 cycle but unfortunately could not qualify. It has been reported to NFIR that when the staff represented for 2nd chance pursuant to instructions of Railway Board vide letter no. E(P&A)I-2010/RT-2 dated 29/03/2011, as applicable in written test, Administration did not allow. This is grossly unjustified. A copy of representation submitted by the staff is enclosed for reference.

NFIR, therefore, requests Railway Board to consider and issue suitable instructions to all zones for considering cases of cycle of December 2011 and onwards for granting 2nd chance to clear aptitude test, as a special case. A copy of the instructions issued may be endorsed to the Federation.

Yours faithfully,
(M.Raghavaiah)
General Secretary

Source: http://nfirindia.com/Index.aspx
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A Meeting on 7th Pay Commission is convened by DOPT

The central government employees will be happy to see some progress in the announcement made by central government on setting up of 7th Pay commission. The General Secretary, NFIR –National federation of Indian railway men, informed his leaders through his letter dated 20/10/2013, that a meeting with JCM Members has been convened under the Chairmanship of Secretary,DOP&T at 1500 hours on 24th October, 2013 in Committee Room No. 190, North Block,New Delhi.

According to the General Secretary, NFIR, the Core Issue to be discussed in the meeting will be ‘Terms and reference of 7th Pay commission.’ So it is believed that National Council JCM Members will share their views in the meeting regarding Terms and reference of 7th Pay Commission. Already lot of suggestions has been poured by netizens on 7th pay commission and the terms and reference of 7th pay commission.

What is Terms and Reference?

The term represents mainly two things
1.Purpose
2.Structure

So the purpose and structure of 7th pay commission will be discussed and most probably defined in the meeting to be held on 24/10/2013 at North Block with Staff Side Members of National Council JCM.

Some suggestions on Terms and reference on 7th Pay commission are compiled and produced here for inviting the Readers opinion.

Structure of the 7th Pay Commission
1) As the practice fallowed before ,7th pay Commission should be headed by a Retired or serving Judge of the Supreme Court;

2) Members of the Commission should have a representation from each Pay Band

3) Commission should have one Member each from Defence , Railways and Postal

4) It should be assisted by a Consultative Body of Ex-Defence and Railway Personnel to project the special conditions prevailing there in – being the largest employers.

Purpose and Principals of Pay Determination
1) 1: 12 Ratio between Minimum and Maximum PAY to be reduced

2) Rationalizing Promotion Policy (No reservation in promtion)

3) Ensure effective functioning of Government Mechanism

4) Effective Grievance redressal System for Government servants

5) Removal of anomalies of Sixth CPC

6) Skill based Wage Structure ( Suggestion of Economist)

So Readers may share their views here ,if any ,on 7th Pay commission and the terms and reference of 7th pay Commission

Source: http://www.7thcentralpaycommission.net
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Re-commencing of booking of Holiday Home at Port Blair

No. D-11016/53/2007-Regions
Government of India
Ministry of Urban Development
Directorate of Estates
Nirman Rhawan, New Delhi
Dated 03 /10/13
Office Memorandum 

Subject: Re-commencing of booking of Holiday Home at Port Blair.

Reference Directorate of Estates vide O.M. of even No. dated 6th June, 2013. Room No. 301, 302, 303, 304, 305 & 306 of Holiday Home at Port Blair kept for repairs & maintenance would be ready for occupation w.e.f. November, 2013 and accordingly, it has been decided to re-commence the booking of above rooms in Holiday. Home at Port Blair with effect from lst November, 2013. NIC, Nirman Bhawan, New Delhi is requested that online booking of above rooms may be re-activated with immediate effect.

However, it may be ensured that applicants can apply for booking only for period with effect from

sd/-
(N.S. Chauhan)
Assistant Director of Estates (Regions)

Source: http://holidayhomes.nic.in/WriteReadData/Circulars/30Re-commencingAtPortBlair.pdf
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NMC urges PM to appoint chairman for 7th Pay Commission

JAMMU: National Mazdoor Conference has asked Prime Minister Manmohan Singh to immediately appoint the chairman and other members of the 7th Pay Commission and hold discussions with representatives of the Centre and state government employees in this regard.

"National Mazdoor Conference has urged to Prime Minister Manmohan Singh to immediately appoint chairman and other members of the 7th Commission and hold discussions with representatives of both Centre and state government employees in this regard as the Central and state government employees and pensioners will be entitled to 7th Pay Commission with effect from January one, 2016," NCM President Subash Shastri said.

An early notification for appointing chairman and other members of the announced 7th Pay Commission is the need of the hour, as it will have a bearing on about one crore employees and pensioners, both with the Central as well as state governments, Shastri said addressing a NMC workers rally at Rani Park here.

"50 per cent of the DA should be forthwith merged into the basic pay and pension," he suggested, adding that 20 per cent interim relief should be sanctioned as early as possible in favour of Central and state government employees and pensioners.

The NMC chief also demanded regularization of all daily- rated workers and casual and seasonal labourers engaged in different government departments.

He appealed to the Chief Minister, Finance Minister and Chief Secretary to formulate a comprehensive policy for the regularization of all such workers.

Source:http://articles.economictimes.indiatimes.com/2013-10-21/news/43250883_1_basic-pay-and-pension-national-mazdoor-conference-nmc-chief
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7th Pay Commission: Suggestions for terms of reference with respect to Pensioners by Bharat Pensioner Samaj

Suggestions  for terms of reference of 7th CPC with respect to Pensioners

1  To examine with a view to having a proper pension structure for pensioners and family pensioners both past and future so that all pensioners irrespective of pre retirement status get equal percentage rise in pension through full parity as well as through normal consolidation.

2  To examine the existing pension structure including death-cum-retirement, commutation of pension and other terminal or recurring benefits, upholding the principal of Parity in Pension between past and future pensioners as recommended by V CPC and make recommendations there to be effective from 01.01.2006.

3  To consider the merger of Dearness Relief wef 1.1.2011 and grant of suitable Interim Relief with immediate effect.

4  To consider the unimplemented recommendation of 5th & 6th CPC.

5  To consider enhancement of% of pension & family pension

6  To examine various health schemes in the light of apex court judgments on the subject & suggest improvements so that all pensioners including those of all India services like IAS, irrespective of pre retirement status get hassle free medical facilities at par .

7  To examine FMA with reference to prevailing market conditions & to suggest enhancement w/o any distance restriction.

8  To examine the scheme of excratia payment to SRPF and CPF retirees and to concider and enhancement in it to the level of minimum pension.

9  These recommendations will  to apply all Central Government Pensioners,Ex servicemen,Pensioners of those PSUs like Prashar Bharti,BSNL,MTNL,FCI consttuted by absorbing the respective Departmental Employees.

Source: http://1.bp.blogspot.com/-IvAKeO2_5rg/UmKsbF7e5fI/AAAAAAAADII/E-x6OaKbnic/s1600/scasuggested-terms-of-refer.jpg
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New Pension Scheme: Corpus up to Rs 2 lakh can be fully withdrawn at retirement

New Pension Scheme (NPS) holders can withdraw the entire fund on retirement if the total amount is Rs 2 lakh or less. The Finance Ministry has notified the change.

“When, on superannuation, a request is received from a subscriber, other than the subscriber under NPS-Lite Swavalamban Scheme, having pension wealth of two lakh rupees or less, he/she may opt for withdrawal of total pension wealth,” according to a Finance Ministry gazette notification . At present, over 4,400 accounts have accumulated amounts of Rs 2 lakh or lower. Out of these, nearly 680 have made a request for withdrawal.

Normally, an individual can exit either at or after the age of 60. However, from March 2013, subscribers were allowed to stay invested till the age of 70, but with some conditions such as no-contribution or part-withdrawal between the ages of 60 and 70.

ANNUITY PROBLEM

At the time of exit, 60 per cent of the total amount is given as lump sum, while 40 per cent is used to purchase an annuity, which provides lifetime pension to an employee and his dependent parents/spouse at the time of retirement. The problem was that the accumulated amount was inadequate for pension payouts. The thinking is that accumulated funds of less than Rs 2 lakh are not enough to purchase an annuity or annuity providing for a decent monthly income.

Now, subscribers, with pension wealth of Rs 2 lakh or less, will have to make a request for an ‘opt-out’ option. Those who have not made a request for withdrawal as lump sum may like to continue, which is why a specific ‘opt out’ option is being proposed, rather than a default option.

NPS is a contributory scheme that was made mandatory for Union Government employees (except those joining the Armed Forces) joining on or after January 1, 2004. Under the scheme, an employee contributes 10 per cent of his/her salary and dearness allowance and an equal contribution is made by the Union Government.

shishir.s@thehindu.co.in
Source:http://www.thehindubusinessline.com/economy/new-pension-scheme-corpus-up-to-rs-2-lakh-can-be-fully-withdrawn-at-retirement/article5248473.ece
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Extension in deputation tenure beyond the prescribed limit of seven years/premature repatriation from a Non – Central Staffing Scheme post – reg

F. No.9/25/2006-E0 (MM-I) 
Government of India 
Department of Personnel, Public Grievances & Pensions 
(Department of Personnel & Training)
North Block, New Delhi,
17th  October, 2013

OFFICE MEMORANDUM

Sub:- Extension in deputation tenure beyond the prescribed limit of seven years/premature repatriation from a Non – Central Staffing Scheme post – reg

As per the ACC directions, an officer working on a Central Staffing Scheme (CSS) post is allowed an additional tenure of two years on his shift to a Non-Central Staffing Scheme post and vice-versa, subject to cadre clearance and further subject to the maximum limit of seven years outside the cadre at a stretch. While allowing the shift, the tenure of the officers is specified/fixed. Similarly as per extant policy, officers working on a CSS post on their premature repatriation on grounds other than promotion are required to undergo extended cooling off.

2. However, it has come to notice that officers have continued to stay beyond the stipulated tenure without the approval of the competent authority, sometimes even beyond the maximum stipulated limit of seven years outside the cadre. It has also come to notice that some of the officers who after their stint under the CSS had shifted to Non-CSS posts were allowed to go prematurely to their cadre without seeking the approval of the ACC.

3. The undersigned is directed to convey that any proposal for premature repatriation and extension in tenure beyond the approved tenure in respect of officers who have shifted from a CSS post and are now working on a Non-CSS post should be referred to DoP&T for approval/orders of the competent authority.

4. All the Ministries/Departments are requested to ensure compliance of the above direction in future.

sd/-
(Dr. Amarpreet Duggal)
Director (MM)

Source :www.persmin.nic.in

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GDS ON COMPASSIONATE GROUNDS – MERIT POINTS AND PROCEDURE FOR SELECTION – CLARIFICATION REG

GDS ON COMPASSIONATE GROUNDS – MERIT POINTS AND PROCEDURE FOR SELECTION – CLARIFICATION REGARDING 17-17/ 2010-GDS

Government Of  India
Ministry Of Communications & IT
Department Of Posts
(GDS Section)

Dak Bhawan, Sansad Marg,
New Delhi -110001
Dated: 09.10.2013

Postmaster General
North East Circle
Shillong – 793001

SUBJECT: SCHEME FOR ENGAGEMENT OF A DEPENDENT OF DECEASED GDS ON COMPASSIONATE GROUNDS – MERIT POINTS AND PROCEDURE FOR SELECTION – CLARIFICATION REGARDING

This has reference to your office letter No. Staff/175 -SEL / 2013 dated 29.08.2013 on the subject cited above.

2. In this context, it may be clarified that the Scheme was initially introduced in case of GDS subject to the same condition applicable to regular employees under No. 43-212/79/Pen dated 04.08.1980.  With the introduction of the merit points and procedure for selection under letter of even number dated 14.12.2010 as amended from time to time, all conditions applicable to compassionate appointment scheme relating to regular employees continue to apply in matters the Scheme does not envisage a specific provision in the context of compassionate engagement of a dependent of the GDC [in case of death only].

3. However, the doubts raised are clarified as under, which are in conformity with the provisions applicable to regular employees:-


S,NO.   Point of doubt Clarification 
 1  Whether in case of death of GDS staffs, some points/score system for “outstanding liabilities for Education/Marriage of dependent children” “will be similarly applicable to unmarried sisters  (Whether minor or major) in case of unmarried deceased official?  Yes.  Brother or sister in case of unmarried GDS are considered as dependent family members for the purpose of consideration of engagement on compassionate grounds.
 2  In a case where the son of the deceased official who is applying for the job have attained majority age, working as cultivator, married and is having children residing with the family of the deceased, will he, his wife and children be considered as dependent of the deceased official or only he will be considered (without considering his wife and children as dependent) for earning points/scores for compassionate appointment?  None.  A married son is not considered dependent on a GDS.
 3  What is the definition of family for considering compassionate appointment cases, whether grandchild/grandchildren of the deceased official (blood relation) will also be considered part of the family of dependent/liability for education and marriage (in case granddaughter) for earning points/scores for compassionate appointment?  No. The Scheme was initially introduced in case of GDS subject to the same conditions applicable to regular employees under No.43-212/79/Pen dated 04.08.1980.  The term defined in case of regular employees holds good in case of GDS also.  Grandchild/children are not considered dependent on a GDS, Dependent family member for the purpose means:
(a) Spouse; or
(b) Son (including adopted son);or
(c) Daughter (including adopted daughter); or
(d) Brother or sister in case of unmarried GDS
 4  Whether brother also is a dependent of the deceased official and if so up to what age he will be considered dependent and will he be entitled for points/scores for all liabilities?  Unmarried brother is considered dependent in case of unmarried GDS irrespective of age provided he was wholly dependent on the GDS at the time of his/her death & he must support other dependent members of the family & thus entitles to points/scores for all liabilities.
 5   In case of an unmarried daughter/Son residing with the family and who have discontinued study at the time of death of the deceased official, whether education will be taken as liability and if so, up to what age?  No. Points will be allowed in those cases only where the dependent family member was undergoing education at the time of death of the GDS
 6  Whether divorced daughter returning to the family with children will be entitled for Points/ Scores for unmarried liability for  her subsequent ,marriage?  Yes.
 7  Whether in case of death of departmental staff, the status of an only married daughter with husband staying with the family (with no other family member) of the deceased departmental official will be entitled to compassionate appointment in case of death of her father (a case of  Meghalaya) ?  So far as the matter is confined to compassionate engagement of dependent of the GDS is concerned, married daughter can be considered for compassionate engagement provided she was wholly dependent on the GDS at the time of his /her death in harness and she must support other dependent members of the family

4. Contents of this letter may please be disseminated to all concerned. This issues with the approval of competent authority.

sd/-
(surender Kumar)
Assistant Director General (GDS)
Source: NFPE
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7th Central Pay Commission - Terms of Reference -Staff Side (JCM) views - reg.

National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI-11o o55
Affiliated to:
lndian National Trade Union Congress (INTUC)
lnternational Transport Workers' Federation (ITF)

20.10.2013
No.IV/NFIR/7th CPC/2013-Pt.1.

Shri Guman Singh,
President, NFIR
At Jaipur.

Shri R.P. Bhatnagar,
Working President,
At Dadar, Mumbai.

Dear Brother,

Sub: 7th Central Pay Commission - Terms of Reference -Staff Side (JCM) views - reg.

A meeting has since been convened under the Chairmanship of Secretary, Dop&T at 1500 hours on 24th October, 2013 in Committee Room No, 190, North Block, New Delhi on the possible terms of reference of the 7th Central Pay Commission whereby Staff Side views may be discussed.

It is therefore requested to reach New Delhi on the morning 24th October, 2013 at JCM's Office - 13-C, Firozshah Road, New Delhi and also to participate in the meeting scheduled to be held at
scheduled to be held at 1500 hrs. on 24.10'2013 in committee Room No. 190, North Block, New Delhi.
Yours fraternally,

(M.Raghavaiah)
General Secretary
Source: NFIR
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Strike Ballot decision on NFIR's charter of Demands-reg

NFIR
3, Chelmsford Road, New Delhi - 110 055
No. II/95.Pt. IV

Dated: 20/10/2013
The General Secretaries of
affiliated Unions of NFIR

Dear Brother,

Sub: Strike Ballot decision on NFIR's charter of Demands-reg.

Ref: Resolutions passed in the Working Committee Meetings of NFIR held on 30/31 May 2013 and 6/7 September 2013.

Affiliates are aware that after lengthy deliberations in the Working Committee Meetings hetd in May at New Delhi and September 2013, at Bhilai, it was decided to proceed ahead for launching indefinite strike in the Railways after conducting Strike Ballot from 28th to 30th November 2013 on the charter of demands and taking into consideration the Strike Ballot results.

2. During this year, more particularly since June,2013 onwards, NFIR affiliates have intensified various forms of struggles, with participation of lakhs of employees in support of NFIR Charter of Demands, simultaneously the resolutions passed in the NFIR Working Committee Meetings for launching indefinite strike were conveyed to the Prime Minister of lndia besides other ministries seeking initiative for negotiated settlement on demands to avert strike in the Railways.

3. There have been references from the Prime Minister's Office to the Ministry of Railways on NFIR's Charter of Demands. Consequently, as directed by Railway Minister. a Special Meeting was held between NFIR and Railway Board (CRB. MS. FC etc) on 23rd August 2013 and in the said meeting, the issues were discussed thread here. The minutes of the special meeting issued by the Railway Board on 2nd September 2013 have already been circulated to the affiliated Unions vide NFIR's letter No. IV/NFIR/WC/209 / IV/NFIR/NSC/2013 dated 03/09/2013.

4. On 25th September 2013, the Prime Minister of lndia has decided to constitute 7th Central pay Commission. This was one of the major demands projected in NFIR's Charter of Demands.

5. So far as Railwaymen's related demands are concerned, the Railway Ministry have issued orders for:

(a) abolition of written test for the wards of safety category staff for appointment under LARSGESS.

(b) merging Senior P. Way, Supervisors with JE/P. Way with spread effect for promotion as SSE/P. Way (GP Rs. 4600/-),

(c) implementing cadre restructuring agreement for upgradation of various Group 'C' categories of staff (of course with certain deviations),

(d) granting additional increment under rule S13 (erstwhile FR-22C) for certain specified categories of staff where promotions are granted in the identical grade pay shouldering higher responsibilities and

(e) the Railway Minister has approved for upgradation of 3335 apex Group 'c' posts to Group 'B' (cazetted) and proposal has since been sent to the Ministry of Finance for clearance.

6. In the Special Meeting held on 27th September 2013 between Railway Board (MS&FC) and the Federations, the demand for implementation of joint committee report in toto for career growth of Track Maintainers was again discussed and the Federation has also reminded the Board
of an agreement already arrived at in the CRC meeting. After discussion, it was agreed to revise the ratio of Track Maintainers as 6:12:22:60 in GP Rs 2800, 2400, l900 & 1800 respectively.
Orders to this effect are expected to be issued soon. However, NFIR's insistence for implementation of l0:20:20:50 ratio shall continue.

7. Affiliates may also take note that the Railway Ministry's proposals on the following issues are pending with the Finance Ministry. These issues were again discussed in the Special Meeting chaired by CRB on 23/8/2013 and status on these itemns have already been conveyed vide NFIR's letter dated 3/9/2013.

(i) Merger of Technicians II with Technician I - Grade pay of Rs. 2800/-.

(ii) Revision of entry Grade Pay as Rs.4200/- to the station Master category.

(iii) Replacement of Grade Pay of Rs. 4600/- with GP Rs. 4800/- (pB-2),

(iv) Revision of Grade Pay of Loo pilots (Mail/Exp) as Rs. 4600/- (pB-2).

(v) Allotment of entry Grade Pay Rs. 5400/- to Group 'B' 'Gazetted.

(vi) Placement of JA Grade officers of Railways in pB-4

(vii) Additional Allowance to Running staff.

GS/NFIR has since written letter to the Hon'ble Prime Minister vide No.II/95/pt. IV dated 28/9/2013 requesting intervention for early clearance of above proposals by finance ministry as the same are pending since long.

8. Apart from the above, parity in pay structure to the stenographers category in Railways was also discussed with the Board (CRB, FC & MS) on 23/8/2013. Assurance was given for expediting the matter and accordingly, processing of the case in the Railway Board has since
been initiated.

9. However the issue relating to guaranteed pension to those appointed on and after 1.1.2004 is continued unresolved while the parliament passed bill on "National Pension System". We have to continue struggle for securing guaranteed Pension, family pension etc., to the employees at par with those on rolls prior to 1.1.2004. We would also take up the issue before VII Central pay Commission.

Taking into account the developments explained above, it has been decided to defer the decision for conducting Strike Ballot from 28th to 30th November, 2013 for the present. It has also been decided to review the situation in the NFIR's National convention scheduled to be held from 10th to l2th December,2013 at Vishakaptnam and decide further course of action for realisation of the remaining demands.

The affiliates are, therefore, advised to take action accordingly and convey to the employees through posters/pamphlets, news/electronic med ia etc.,

Yours faithfully,
(M.Raghavaiah)
General Secretary
Source: NFIR
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Gross Salary for Newly Appointed Postal Assistant / Sorting Assistant / PA SBCO

Author of blog does not accepts any responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents.

A request was made by a candidate regarding salary structure of newly appointed  Postal Assistants/Sorting Assistant (PA/SA) and the details are as follows

B.P = Basic Pay
D.A = Dearness Allowance
H.R.A = House Rent Allowance
T.A = Travelling Allowance

The above are used for calculating the total salary of a Postal/Sorting Assistant

PA/SA’s are included in the Pay Scale of  5200-20200  with a grade pay of 2400.

Calculation:

1. Basic Pay (BP) = 9910 (7510 + 2400)

2. Dearness Allowance = Dearness Allowance (DA) is given by the Government in every six months ie, in January and July every year. From Jan 2013, the Dearness Allowance is 80%. Thus the present DA is 80% of 9910 which works out to 7928.

3)    House Rent Allowance (HRA) = HRA is calculated based on the city where you are working. In India the cities have been classified into three categories as “X”, “Y” and “Z”.
X' Cities - 30% HRA

States
Cities Classified as "X"
Andhra Pradesh
Hyderabad (UA)
Delhi
Delhi (UA)
Karnataka
Bangaluru (UA)
Mahrashtra
Greater Mumbai (UA)
Tamilnadu
Chennai (UA)
West Bengal
Kolkatta (UA)
                                                                   
 Y' Cities - 20% HRA 
States
Cities Classified as "Y"
Andhra Pradesh
Vijayawada (UA, Warangal, (UA), Vishkhapatnam (UA), Guntur
Assam
Guwahati (UA)
Bihar
Patna (UA)
Chandigarh
Chandigarh
Chattisgarh
Durg-Bhilai Nagar (UA), Raipur (UA)
Gujarat
Ahmedabad (UA), Rajkot (UA), Jamnagar (UA), Bhavnagar (UA), Vadodara (UA), Surat (UA)
Haryana
Faridabad*
Jammu & Kashmir
Srinagar (UA), Jammu (UA)
Jharkhand
Jamshedpur (UA), Dhanbad (UA), Ranchi (UA)
Karnataka
Belgaum (UA), Hubli-Dharwad, Mangalore (UA), Mysore (UA)
Kerala
Kozhikode (UA), Kochi (UA), Thiruvananthapuram (UA)
Madhya Pradesh
Gwalior (UA), Indore (UA), Bhopal (UA), Jabalpur (UA)
Maharashtra
Amravati, Nagpur (UA), Aurangabad (UA), Nashik (UA), Bhiwandi (UA), Pune (UA), Solapur, Kolhapur (UA)
Orissa
Cuttack (UA), Bhubaneswar (UA)
Punjab
Amritsar (UA), Jalandhar (UA), Ludihiana
Pondicherry
Pondicherry (UA)
Rajasthan
Bikaner, Jaipur, Jodhpur (UA), Kota (UA)
Tamilnadu
Salem (UA), Tiruppur (UA), Coimbatore (UA), Madurai (UA)
Uttarkhand
Dehradun (UA)
Uttar Pradesh
Moradabad, Meerut (UA), Ghaziabad*, Aligarh, Agra (Ua), Bareilly (UA), Lucknow (UA), Kanpur (UA), Allahabad (UA), Gorakhpur, Varanasi (UA)
West Bengal
Asansol (UA)


 Remaining cities –      Z' Cities - 10% HRA 

In X cities = 30 % of 9910 = 2973

In Y Cities = 20 % of 9910 = 1982

In Z Cities = 10 % of 9910 = 991

Travelling Allowance = TA is fixed as Rs.800 + the DA %

of 800. So at present TA is 800 + 80% of 800 = 1440.

Gross Salary works out to: (For Newly Appointed PA)

        In X class cities salary will be = 9910+7928+2973+1440   =    Rs. 22251

        In Y class cities will be = 9910+7928+1982+1440 =  Rs. 21260

    In Z class cities will be = 9910+7928+991+1440= Rs. 20269

Source:http://www.akulapraveen.blogspot.in/
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HOW TO READ BAR CODES...(everyone must know)

ALWAYS READ THE LABELS ON THE FOODS YOU BUY--NO MATTER WHAT THE FRONT OF THE BOX OR PACKAGE SAYS, TURN IT OVER AND READ THE BACK---CAREFULLY!

With all the food and pet products now coming from China, it is best to make sure you read label at the supermarket and especially when buying food products. Many products no longer show where they were made, only give where the distributor is located. The whole world is concerned about China-made "black- hearted goods".

Can you differentiate which one is made in Taiwan or China ? The world is also concerned about GMO

(Genetically Modified Organism)
foods; steroid fed animals (ex: 45 days old broiler chicken).

It is important to read the bar code to track its origin. How to read Bar Codes....interesting !

If the first 3 digits of the bar code are 690, 691 or 692, the product is MADE IN CHINA.471 is Made in Taiwan .

If the first 3 digits of the bar code are 00-09 then it's made or sourced in USA.

This is our right to know, but the government and related departments never educate the public, therefore
we have to RESCUE ourselves. Nowadays, Chinese businessmen know that consumers do not prefer products "MADE IN CHINA", so they don't show from which country it is made. However, you may now refer to the bar-code -

remember if the first 3 digits are:

890......MADE IN INDIA

690, 691, 692 ... then it is MADE IN CHINA

00 - 09 ... USA and CANADA

30 - 37 ... FRANCE

40 - 44 ... GERMANY

471 ........ Taiwan

49 .......... JAPAN

50 .......... UK Share it!!!




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NFPE & FNPO DECIDED TO GO ON NATIONWIDE INDEFINITE STRIKE

FLASH NEWS
NFPE & FNPO DECIDED TO GO ON NATIONWIDE INDEFINITE STRIKE IF THE DEMAND FOR INCLUSION OF GRAMIN DAK SEVAKS UNDER THE PURVIEW OF 7TH CENTRAL PAY COMMISSION IS NOT ACCEPTED BY THE GOVERNMENT. THE MAIN DEMANDS OF THE STRIKE WILL BE

(1) Inclusion of Gramin Dak Sevaks under the purview of 7th CPC

(2) Regularisation of Casual, Part-time, Contingent Employees and Revision of their wages with effect from 01.01.2006 (as per 6th CPC wage revision) & Grant of DA

(3) Merger of 50% DA with pay for all employees including GDS

The above decision was taken in the Central JCA Meeting held on 19.10.2013 at New Delhi under the Chairmanship of Shri. T. N. Rahate, President, FNPO.


(M. Krishnan)                                                      (D. Theagarajan)
Secretary General                                               Secretary General
NFPE                                                                    FNPO

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VII PAY COMMISSION shock for the states.

On September 25, the government of India announced the constitution of the seventh central pay commission. While the central pay commission’s (CPC) recommendations are applicable to central government employees’ salaries, the salaries of all state government and local bodies (municipal corporations, etc) employees are revised after central government’s acceptance of recommendations of the CPC.

The first CPC was constituted in May 1946. It was based on the idea of giving the employees living wages that suit the conditions of the day, qualified by the condition that in no case should be a man’s pay be less than a living wage. The second pay commission stated that the pay structure and the working conditions of the government employees should be crafted in such a way that efficient functioning of the system is ensured by recruiting persons above or with a minimum qualification.

Cost of living and type of economy are two major factors behind the pay commission award. India is moving towards a market economy and the government has to compete with the private sector to attract talent, and hence, offer competitive salaries.

The government generally accepts all recommendations of pay commissions regarding increase in salaries. However, it skirts hard decisions such as down-sizing/right-sizing of the government, linking the efficiency/productivity of employee with future pay increase/promotions, etc. India is facing huge challenges of skilled manpower in various sectors, viz. education, technology, etc. What we need is right-sizing of the government to provide crucial services efficiently to the citizens.

Some states revise salaries of their employees on the basis of the recommendations of separate commissions/committees formed by them while some use the CPC recommendations. Salary revision of state government employees, generally, takes place with a lag from the revision of central government employees’ salaries. Two states, Karnataka and Kerala, follow schedules different from the central government’s for revising employees’ salaries, through their own salary revision committee/commission. Karnataka revised salaries of its employees on April 1, 2012; Kerala revised them last on July 1, 2009.

The salary revision, both at the central and state levels, takes place without factoring in the governments’ ability to absorb shocks of wage increase and the fiscal implications associated with it. Ceteris paribus, an increased wage bill enlarges the deficit and affects inflation, interest rates and growth prospects adversely. A higher wage bill increases government’s committed expenditure, which is impossible to adjust even in the medium-term. Increased consumption demand provides some support to growth. Generally, capital expenditure becomes the soft target of fiscal adjustment, affecting infrastructure creation and medium- to long-term growth prospects of the economy. Higher borrowing to finance current consumption and deficit leads economy to a structural weakness.

Salary revision based on the recommendations of the pay commissions in the past have taken place with retrospective effect (e.g., January 1, 1996, for the sixth CPC). Employees are paid arrears for the period between the date of salary revision and the date of first draw of the revised salary. This exerts pressure on the public finances of both central and state governments. One way of limiting the pressure would be to revise salaries frequently rather than every 10 years. The fourth CPC even recommended that there should be a permanent machinery to undertake periodic review of pay and allowances of central government employees. The government considered, but did not accept, this proposal.

Data on wage bill/salary of the central government is not available on comparable bases. However, CAG state audits and RBI’s annual publication, State Finances—A Study of State Budgets, make available some data on the wage bills of the states. RBI, in the same publication, provides annual data on non-developmental revenue expenditure under six different sub-classifications. The non-developmental revenue expenditure on organs of state, fiscal services, administrative services and pensions is taken as a proxy for a state government’s wage bill. The advantage of using this data is that it’s available for a fairly long period (1980-81 onwards). This period takes into account three different CPC awards—that of the fourth, fifth and sixth.
Salary revision has led to a rapid increase in the state governments’ wage bills in three previous instances. The average growth of states’ wage bill during 1987-88 to 1989-90 jumped to 21.3% from 13.5% during 1984-85 to 1986-87. The revenue account showed a deficit of 0.5% of the GDP from a surplus of 0.1% and the average fiscal deficit increased to 2.9% of the GDP from 2.8%. This clearly suggests capital compression for fiscal adjustment.

The fifth CPC award came at a time when economic growth was sound—the average growth during 1994-95 to 1996-97 was 7.2%. The average growth of the states’ wage bill during 1997-98 to 1999-00 shot up to 23.4% from 13.3% during 1994-95 to 1996-97. The average economic growth during 1997-98 to 1999-00 declined to 6.2% and revenue deficit ballooned to 2.1% of the GDP from 0.8%. While the revenue deficit deteriorated by 1.9 percentage points (pp) of the GDP, the deterioration in fiscal deficit was lower at 1.2 pp, suggesting adjustments in capital expenditure to accommodate salary revision and minimise fiscal slippage. A study by the World Bank concluded that the salary revision was mainly responsible for deterioration in the states’ fiscal profile.

The average growth three years before the sixth CPC was good (at 8.5% between 2006-07 and 2008-09). It fell marginally to 8.0% during 2009-10 to 2011-12. While the central government employees’ salaries were revised in 2008-09 for the state governments’, it started from 2009-10. The average growth of states’ wage bill during 2009-10 to 2011-12 was 20.8% vis-à-vis 16.4% growth during 2006-07 to 2008-09. The states’ aggregate revenue account showed a deficit (0.1% of GDP) during 2009-10 to 2011-12 from a surplus of 0.6% during 2006-07 to 2008-09. While the revenue balance deteriorated by 0.7 pp of GDP, the deterioration in fiscal deficit was at 0.3 pp, suggesting adjustment in capital expenditure to accommodate salary revision.

Some of the states severely impacted by the last salary revision (in line with the recommendations of the sixth CPC) were Assam, Bihar, Kerala, Maharashtra, Punjab, Tamil Nadu and West Bengal. Assam, Bihar, Kerala, Punjab and West Bengal have relatively weaker fiscal profile. Based on the experience of the last pay revision and the present fiscal situation, these states are more vulnerable and will find it difficult to absorb the adverse shock of a new pay revision. However, based on limited information available on the seventh CPC, the time lag between the effective date and implementation of the award will be less leading to a lesser amount of arrears compared to past salary revisions. To a certain extent, this would reduce adverse impact on state finances.

The author is chief economist and head-public finance, India Ratings and Research (Ind-Ra).

Views are personal
Source: http://www.financialexpress.com/news/pay-commission-shock-for-the-states/1182510/0
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