Things common people should know about 7th CPC pay raise of Government employees

In an unfortunate event which has occurred yesterday in broad day light, the Government of India has brutally killed the morale of 4.7 Million of its employees. Even more worse thing is the Government has been boasting that it has given a great gift to its employees. 

Government is highlighting a few things which are very misleading to the common public. Govt says that the minimum basic is increased from 7000 to 18000 showing that the basic is more than doubled. But the fact is, a government employee's salary depends on many factors not only basic. Even though the basic is doubled, the total salary hike is not more than 5000 to 6000. 

A salary of govt employee is calculated as follows.

 Total salary = (Sum of allowances ) - (Sum of Deductions) 
Allowances are

1. Basic Pay ( Which the Govt says has increased more than double) 

2. Dearness allowance ( Calculated based on the price rise index) 

3. House rent allowance ( Differs for people living in metros, cities, towns and villages) 

4. Transportation allowance ( Differs for people living in metros, cities, towns and villages) 

Now the points here most common people do not know is,

 1. Dearness allowance will become 0% which now stands at 125% of basic. It is customary to start dearness allowance from 0% from the beginning of new pay.

 2. Govt has reduced the present House rent allowances from 30% in metros, 20% in cities and 10% in towns and villages to 24% in metros, 16% in cities and 8% in towns and villages respectively. 

3. Only 19 cities in India have been given a transportation allowance of 3600 and all other places will have TA of 1800 only. 

The point is even though Government is boasting about doubling of basic, the actual salary of normal clerk has increased to the extent of only 6000 to 9000. Where as common public will think that since salary is increased by 23.55% or more than double basic, govt employees will now get 70000 to 80000 per month. That is absolutely false. 

A govt servant with 10 years of service in clerical cadre used to get a salary of around 35000 will now get a salary of around 42000 only. 

We all know the fact that price rise is on the top gear, petrol prices never to be coming down thanks to customs tax which gets modified every fortnight, a common man living in cities cannot live a normal life with these salaries. We also do have families to look after and children to raise. Ambitious children who have the mettle to do great things in future. 
But throwing peanuts for our services which is not less valuable than gold is unjustifiable. Government servants are the tires on which this country rides. A flat tire, a punctured tire will only leads to accidents.

 Government should realise their mistake and give the servants what they truly deserve. We the servants of the Government of India request all the common people to support us in meeting our demands. 
We request all the government employees to stay strong and stay united until the govt gives us what we truly deserve.

Cabinet approves Implementation of the recommendations of 7th Central Pay Commission : PIB News

Cabinet approves Implementation of the recommendations of 7th Central Pay Commission

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7^th Central Pay Commission (CPC) on pay and pensionary benefits.   It will come into effect from 01.01.2016.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5^th CPC, and for 32 months at the time of implementation of 6^th CPC.  However, this time, 7^th CPC recommendations are being implemented within 6 months from the due date.

The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year. 

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

Highlights:

1.            The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.

2.            All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.

3.            The minimum pay has been increased from Rs.  7000 to 18000 p.m.  Starting salary of a newly recruited employee at lowest level will now be Rs.  18000 whereas for a freshly recruited Class I officer, it will be Rs.  56100.  This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.

4.            For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.

5.            Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

6.            The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

7.            Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :

·               Gratuity ceiling enhanced from Rs.  10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.

·               A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.

·               Rates of Military Service Pay revised from Rs.  1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.

·               Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.

·               Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

8.            The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs.  7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.

9.            The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

10.        The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.

11.        The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances.  The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.

12.        The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.

13.        Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.

14.        As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.

  

DHARNA/DEMONSTRATION IN FRONT OF DAK BHAWAN REGARDING PROBLEMS RELATED TO CBS/CIS & FINACLE POSTPONED

DHARNA/DEMONSTRATION IN FRONT OF DAK BHAWAN REGARDING PROBLEMS RELATED TO CBS/CIS & FINACLE POSTPONED

As a consequence of wonderful success at branch/division/Circle level programme and also as because a dharna has been scheduled at Postal Directorate tomorrow on CBS/CIS issue, Member (P) and Member (Banking) invited Com. R. N. Parashar, General Secretary to meet them today and subsequently meeting held.

Based on assurances and appeal by Member (P) & Member (Banking) to readdress all the problems as soon as possible related to CBS/CIS & Finacle, Dharna/Demonstration in front of Dak Bhawan to be held on 30.06.2016 postponed.

We are also getting some positive feedback/report from Circle/Divisions. There are some improvements in CBS/CIS and Finacle problem in some areas. Some areas are still left with pains which are also to correct.

So comrades, please intimate the position of CBS/CIS in your circle to take up with Postal Directorate accordingly.

7 CPC DISAPPOINTS

7^th CPC – GOVERNMENT REJECTED ALL THE MODIFICATIONS SOUGHT BY THE NJCA

NO INCREASE IN MINIMUM PAY AND FITMENT FORMULA

HOLD PROTEST DEMONSTRATIONS & RALLY IN FRONT OF ALL OFFICES AND AT ALL IMPORTANT CENTRES

NJCA will meet at 04:00 PM on 30^th June 2016 to decide future course of action. Continue in full swing mobilization for indefinite strike from 11^th July 2016.

M. Krishnan

Secretary General

Confederation

7th Pay Commission: Key highlights from Arun Jaitley’s press conference

7th Pay Commission: Key highlights from Arun Jaitley’s press conference

The Union cabinet on Wednesday accepted the recommendations of the 7th Pay Commission, giving a substantial raise to the salaries and pensions of central government employees.

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

Here are the highlights from Finance Minister Arun Jaitley’s press conference this evening:

1. Minimum pay of Rs 18,000 has been recommended against the existing Rs 7,000 per month
2. Rs 2,25,000 per month is the maximum pay for apex scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level
3. Based on the minmum pay, a fitment factor of 2.57 is being proposed to be applied uniformly for all employees
4. The rate of annual increment is being retained at 3 per cent
5. The commission has recommended abolishing 52 allowances altogehter
6. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances
7. The total financial impact in the FY 2016-17 is likely to be ₹1,02,100 crore

The Union Cabinet on Wednesday approved the Seventh Pay Commission recommendations during its meeting.

NEW DELHI: The Union Cabinet on Wednesday approved the Seventh Pay Commission recommendations during its meeting.

The Centre had earlier in earlier in January set up a panel headed by Cabinet Secretary P. K. Sinha to process the recommendations of the Seventh Pay Commission, which is expected to change the remuneration of 47 lakh central government employees and 52 lakh pensioners.

The Pay Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP.

The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

The 23.55 per cent increase includes hike in allowances.

The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.

The implementation of new pay scales recommended by the Seventh Pay Commission is estimated to put an additional burden of Rs 1.02 lakh crore on the exchequer annually.

Union Finance Minister Arun Jaitley had in his Budget for 2016-17 provisioned Rs. 70,000 crore towards the Seventh Pay Commission, which is around 60 percent of the incremental expenditure on salaries.

The Pay Commission’s recommendations are due from January 1, 2016.

The Commission was set up by the former UPA government in February 2014 to revise remuneration of the central government employees.

(With inputs from agencies)

7th Pay Commission: Cabinet Secretary met PMO, Government to take final decison this week

7th Pay Commission: Cabinet Secretary met PMO, Government to take final decison this week

Around 47 lakh Central Government employees working in various sectors are eagerly awaiting for their salary hike. 

New Delhi, June 19: The Central Government employees who have been eagerly waiting for the 30 per cent hike in their salaries, it seems their wait is finally over. The Narendra Modi government is about to take a final call this week, as group of Cabinet secretaries met the PMO officials. The pay panel will be conducting a meeting this week, as it has been more than two months the empowered group headed by Cabinet secretary is said to have recommended 30 per cent hike in salaries of central government employees.

On Saturday there were reports that a group of secretaries had said that the minimum salary as well as the fitment factor should be raised in the Seventh Pay Commission.

According to the report that appeared in Zee News suggested, that the starting salary of the government employees is expected to be around Rs 23,000, up from Rs 18,000, which has been also recommended by AK Mathur led panel in April.

A source close to Zee News said that the fitment factor is likely to be raised to around 2.7, up from 2.57 as recommended by the 7th Pay Commission.

On Sunday Dainik Jagran reported, that a group of Cabinet Secretaries met the PMO officials on Wednesday and appraised them about the secretaries panel’s recommendations on the salary and allowances hike recommended by the commission.

Seventh Pay Commission’s recommendations have submitted its report to the Finance Ministry by the panel secretaries. The Finance Ministry is preparing a note and will present it before the Cabinet this week.

Around 47 lakh Central Government employees working in various sectors are eagerly awaiting for their salary hike, along with the 52 lakh pensioners who are expecting a significant increase in the monthly pension provided to them.

Read at: India.com

7th Pay Commission latest news – Empowered Committee meeting may be held today 14.06.2016

7th Pay Commission: Secy panel to give final nod to salary hike on Tuesday

New Delhi: The Empowered Committee of Secretaries headed by the Cabinet Secretary Pradeep Kumar Sinha will now meet on Tuesday (June 13) to finally process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.

As per sources, the meeting of the Empowered Group of Secretaries, to finalize the payout to the central government employees did not take place as scheduled earlier on Saturday (June 11).

The Empowered Committee of Secretaries is functioning as a Screening Committee to process the recommendations with regard to all relevant factors of the Commission in an expeditious detailed and holistic fashion.

Government had earlier decided to set up a high-powered panel headed by Cabinet Secretary P K Sinha in January this year to process the recommendations of the 7th Pay Commission.

Media reports further state that after getting final nod from the Empowered Committee of Secretaries, Finance Ministry will take only a few days to implement the higher pay package for central government employees.

As per reports, the secretaries group may recommended a 30 percent increase in minimum and maximum basic pay structures along with doubling of existing rates of allowances and advances.

The 7th Pay Commission had suggested a maximum basic pay of Rs 2,50,000 and a minimum of Rs 18,000. A 30 percent increase would translate into maximum monthly salary of Rs 3,25,000 and minimum at Rs 23,400, respectively.

7th CPC: Secretaries panel to decide final monthly salary for central government employees today

New Delhi: The central government employees wait for a better monthly salary is soon going to end. The Empowered Committee of Secretaries is meeting on Saturday and finalize its review of the 7th Pay Commission's recommendations.
The AK Mathur led 7th pay panel report, which was released in November, had raised the minimum pay to Rs 18,000 per month from currently drawn Rs 7,000, while the maximum pay recommended was Rs 2.5 lakh per month from Rs 90,000.
The Confederation of Central Government Employees & Workers decried the wage revisions suggested by the Commission as the "the lowest in the post independent history of the country", and said a "meager rise of 14% alone was recommended by the Commission to be effective for a long period of ten years."
The Empowered Committee of Secretaries, which was set up in January to review the 7th Pay Commission's recommendations, is meeting in New Delhi on Saturday and is expected to finally decide how the monthly package of central government employees will shape up.
"It (Empowered Committee of Secretaries) is a divided house, but good number of people agree that what we are saying has a point", said KKN Kutty, President, Confederation of Central Government Employees & Workers.
The Confederation is demanding the minimum salary of Rs 26,000 per month. " The Staff side had computed the minimum wage as on 1.1.2014 at Rs. 26,000, The rates were taken on the basis of the actual retail prices in the market as on 1.1.2014 (average prices of 8 Cities in the country) substantiated by the documentary evidence of Cash bill obtained from the concerned vendors. As on 1.12016, the minimum wage work out to Rs. 29339, rounded off to Rs. 30,000", said the Confederation in its Charter of demand.
It has done everything possible to get the maximum payout under 7th Pay Commission. The Confederation has decided to go on strike from July 11, if its charter of demand are not met by the government, and has already given the strike notice to the Cabinet Secretary.
There are nearly 47 lakh employees and over 50 lakh pensioners in India on central government payrolls currently.
The Empowered Committee of Secretaries was set up in January has and  involved all the stake holders involved--central government unions, departments, ministries and all other - and will complete deliberations in todays meeting and decide the final monthly payout.


SOURCE: Zee Media Bureau

POSTAL DEPARTMENT'S PAYMENTS BANK TO EMPLOY ABOUT 3.5 LAKH PEOPLE: RAVI SHANKAR PRASAD

Prasad has asked Department of Posts to hasten process of setting up all 650 payments bank branches by September 2017.

Telecom Minister Ravi Shankar Prasad Thursday asked Department of Posts to hasten process of setting up all 650 payments bank branches by September 2017.

"Minister (Prasad) today met Postal Services Board for India Post Payments Bank and asked them to expedite the process of setting up this entity by September 2017 as desired by Prime Minister Narendra Modi. There will be about 3.5 lakh employees who are being trained in phases," an official source told PTI.

The Union Cabinet on Wednesday cleared proposal to set up India Post Payments Bank with a corpus of Rs 800 crore and has plans to have 650 branches operational by September 2017. It will be expanded further scaled up to cover the entire country by the end of financial year 2018-19.

Earlier, the Department of Posts (DoP) had to set-up 650 IPPB branches in three years.

With advancement of target, DoP will set up 50 branches by March, 125 by April, 200 in May, 300 in June, 400 in July, 525 in August and 650 by September.

"The Minister (Prasad) will hold review meetings every fortnight," the source said.

Initially most of the 3.5 lakh workforce will be posted on deputation who will be gradually replaced by fresh recruits.

Prasad has asked postal department to hire MD and CEO of the IPPB by August and set up selection committee for hiring Chief Financial Officer by June 15.

The minister has also advance dates for giving handheld devices to 1.3 lakh grameen dak sevaks.

"He has asked the Department of Posts to start rolling out handheld devices in from June 15 and finish the process by in next 3-4 months," the source said.

The IPPB will be managed professionally and most of its A grade employees will be hired from market. The IPPB board will have representation from various other government departments including the Department of Posts, Department of Expenditure, Department of Economic Services etc.

Government has approved Rs 800 crore corpus for IPPB which will have Rs 400 crore equity and Rs 400 crore grant.

CABINET APPROVES INDIA POST PAYMENTS BANK PROPOSAL

 Govt will set up 650 branches of the Postal Payments Bank by September 2017, says Ravi Shankar Prasad

            New Delhi: The government on Wednesday cleared a proposal to set up the India Post payments bank with a corpus of Rs.800 crore and has plans to have 650 branches operational by September 2017, telecom minister Ravi Shankar Prasad said.

            “The Cabinet has cleared proposal of postal payments bank. We have 1.54 lakh post offices of which 1.39 lakh are rural post offices. 650 branches of postal payments bank will be established in the country which will be linked to rural post offices,” Prasad said.

            The minister said the payments bank, which will be run by a chief executive officer, will be professionally managed and there will be a representation from various other government departments including the Department of Posts, Department of Expenditure, Department of Economic Services etc.

            “Total architecture of postal payments bank is of Rs 800 crore which will have Rs 400 crore equity and Rs 400 crore grant. By September 2017, all 650 branches of postal payments bank will become operational. This we had planned for three years but now we will be doing it in a year,” Prasad said.

            He said that all rural post offices will be given handheld devices by March 2017. “We are reinforcing it further. I have had discussion with my officers to give iPad and smartphones to postmen in urban post offices,” Prasad said. At present, there are 22,137 post offices with core banking facility compared to State Bank of India’s 1,666 branches.

7TH PAY COMMISSION AWARD WILL BE IMPLEMENTED FROM JULY 1, 2016

New Delhi: A Finance Ministry’s official today said new pay scale for all central government officials and employees under the 7th Pay Commission award will be implemented from July 1, 2016.

“The 7th Pay Commission award will be implemented after taking decision of the cabinet in light of recommendations made in the reports of the 7th Pay Commission and the recommendations Empowered Committee of Secretaries, which will be made on June 11″ he said in reply to our question.

The cabinet expects giving the 7th Pay Commission award to central government employees in the next month, The Prime Minister Narendra Modi will give his approval to the 7th Pay Commission award like he approved the proposal of extending the retirement age of all doctors of the Central Health Service to 65 years, creating a record of sorts by clearing the proposal in less than than 24 hours of receiving it from the Health Ministry, said a top PMO official on Tuesday asked not to be named because he was not authorized to release the information.

The Empowered Committee of Secretaries would scrutinize recommendations of the 7th Pay Commission on June 11 finally to make government able to announce the 7th Pay Commission award to implement from July 1, Finance Ministry official said.

Accordingly, the brightest diyas of coming Diwali will be lit outside houses of central government employees. For, when the rest of the world is reeling under the fear of losing jobs.

The 7th pay commission recommendations’ implementation could not have been timelier, some economic experts say. So when the world is plunging in recession, central government employees are busy counting their blessings along with the hard cash they will receive in August as arrears from January 2016.

The several central government establishments such as the railways, telecom, air force, army, CPWD, CRPF, DRDO, CISF, Income Tax, Survey of India, customs and excise, among others are in happy mood.

These would perhaps live up to the ‘happy and prosperous’ Diwali greeting. After all, they will get arrears as well as bonus ahead of festive season.

The 7th Pay Commission headed by Justice A K Mathur proposed the highest salary at Rs 250,000 and the lowest at Rs 18,000. The commission also recommended 14.27 per cent increase in basic pay, 23.55% overall increase in salary, allowances and pensions. The increase in allowances was recommended 63% while pension was proposed to rise 24%.

The previous Sixth Pay Commission had recommended a 20 per cent hike in basic pay which the government doubled while implementing it in 2008.

A 13 members Empowered Committee of Secretaries, led by cabinet Secretary P K Sinha was formed in January to review the recommendations of 7th Pay Commission before cabinet nod and the committee is likely to finalize its work on June 11.

The Empowered Committee of Secretaries is likely to reach the conclusion to propose 30 percent basic pay raise instead of 14.27 per cent, which was recommended by 7th Pay Commission. They are also mulling for doubling of existing rates of such allowances and advances, which has been recommended for abolition by the 7th Pay Commission, sources said.

Finance Minister Arun Jaitley will take the Empowered Committee of Secretaries’ proposal to the Union Cabinet for its approval in this month,” they said.

The new pay scales will be effective from January 1 for all central government employees.