An urgent meeting like J.C.M. (D.C.) is being organized by the Postal Board at Dak Bhawan, New Delhi on Pay Commission related issues on 08.12.2015 at 11 A.M.
Tuesday, 1 December 2015
GOVT LIKELY TO HIKE MINIMUM PAY RS 20,000; NOT TO ABOLISH ANY ADVANCE, ALLOWANCE
New Delhi: The government is likely to give minimum basic salary Rs 20,000 of central government employees while the Seventh pay commission recommended fixing the lowest at Rs 18,000 for the central government employees on its report which was submitted to Finance Minister Arun Jaitley on November 19 by Justice A K Mathur, who heads the seventh pay commission.
An official of Expenditure Department Cell For implementation of Pay Commission recommendations said the government wants to make up pay gap between employees and higher officers and to hike Basic salary at least Rs 20,000 from Rs 18,000 recommended by the Seventh pay commission,
The government has no intention to cut current allowances and advances of any employees. The government motto is betterment must be done by protecting the current advances and allowances.
The Seventh pay commission has recommended for abolition of various allowances and advances like risk allowance, small family allowance, festival advance, motor cycle advance, he added.
He also said the government may not suggest any curtailment of the allowances and advances being now enjoyed by the central government employees, and the gazette of the pay hike, which is coming within six months, also would not do it.
The central government employees at various levels have been complaining of the abolition of the various allowances and advances.
They also termed the Seventh Pay Commission report as a width pay gap discrimination between employees and higher officers because in its report, the Pay Commission has recommended to increase the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8
Every pay commissions made up pay gap between employees and higher officers from second Pay Commission 1:41 ratio to Sixth pay commission 1:12.
7th Pay Commission pension, pay scales, MSP, MACP, more: Here are top 10 points to clear all doubts
7th Pay Commission pension, pay scales, MSP, MACP, more: Here are top 10 points to clear all doubts
7th Pay Commission pension, pay scales – highlights, more: The 7th Pay Commission report has recommended an average 23.55% hike in salaries and allowances of Central government staff and the same is likely to be replicated in all the states too, except Puducherry where the same system as in Centre is already applicable – minimum pay set at Rs 18,000 per month and maximum pay at Rs 2,50,000 per month - recommended date of implementation: 01, January, 2016. Here we provide all you ever wanted to know in 10 points on most crucial aspects of the Seventh Pay Commission report:
- 7th Pay Commission pension, pay scales, allowances - Minimum Pay: Based on the Dr Wallace Aykroyd formula (nutrition) , the minimum pay (salary) in government is recommended to be set at Rs 18,000 per month; Maximum Pay: Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level. If passed, the salary hikes this report is recommending are likely to boost demand for consumer goods across the spectrum, even though it could also be inflationary. (Reuters)
- 7th Pay Commission pension, pay scales, allowances - Advances: a. All non-interest bearing Advances have been abolished; b. Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs 25 lakhs from the present Rs 7.5 lakhs. (PTI)
- 7th Pay Commission pension, pay scales, allowances - Pension: The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement. The 7th Pay Commission received many grievances relating to New Pension System (NPS). It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism. (PTI)
- 7th Pay Commission pension, pay scales, allowances - Performance Related Pay: The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes. (PTI)
- 7th Pay Commission pension, pay scales, allowances - New Pay Structure: Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix. The rate of Annual Increment is being retained at 3 percent. (PTI)
- 7th Pay Commission pension, pay scales, allowances - Modified Assured Career Progression (MACP): a. Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”; b. The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service; c. No other changes in MACP recommended. (Thinkstock)
- 7th Pay Commission pension, pay scales, allowances - Military Service Pay (MSP): The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows: (Reuters)
- 7th Pay Commission pension, pay scales, allowances - Short Service Commissioned Officers: Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. The Seventh Pay Commission also says they will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute to better their prospects in later life. (PTI)
- 7th Pay Commission pension, pay scales, allowances - Allowances: The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix. a. Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance. (PTI)
- 7th Pay Commission pension, pay scales, allowances – Financial Implications: The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, over the expenditure as per the “Business As Usual” scenario. Of this, the increase in pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore and increase in pension would be Rs 33,700 crore. In percentage terms the overall increase in pay & allowances and pensions over the “Business As Usual” scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent.
SEVENTH PAY COMMISSION IMPLEMENTATION LIKELY MID-2016: MACQUARIE INDIA
According to the finance minister, the implementation of the seventh pay commission will impact the fiscal deficit by 0.65% of GDP.
The seventh pay commission that has recommended a 23.5 per cent hike in salaries for central government employees may only get implemented by the middle of next year, according to Rakesh Arora, managing director and head of research, Macquarie India.
However, there is no certainty that it would happen even in the next six months, he said.
"And still there is no guarantee that it is going to be implemented in the next six months, it is still for the government to really consider.
"So what we are saying is from the timing it can happen by middle of 2016 and not be pushed out too late."
The sixth pay commission was delayed by 2.5-3 years, Mr Arora pointed out.
The seventh pay commission, headed by Justice AK Mathur, last month submitted its report to Finance Minister Arun Jaitley. The recommendations, once cleared by the Cabinet, will lead to a substantial hike in salaries of central government employees and pensioners with effect from January 1, 2016.
However, there are worries on the fiscal deficit front due to the seventh pay commission, he said.
The government will incur an additional expenditure of Rs 1.02 lakh crore to pay higher salaries and pensions recommended by the seventh Pay Commission. Of this, Rs 28,000 crore will go for salary hikes of railway employees.
According to the finance minister, the implementation of the seventh pay commission will impact the fiscal deficit by 0.65 per cent of GDP.
However, it will ensure more money in the hands of the people, Mr Arora said. The salary hikes are expected to boost sales of affordable homes and consumer durables, which in turn will drive demand in the economy.
The seventh pay commission proposes a 16 per cent hike in basic salaries of 47 lakh serving government employees, and a 63 per cent hike in allowances. As a result, the overall hike in salaries will be 23.55 per cent. This compares with the 35 per cent salary hike central government employees got on implementation of the sixth pay commission in 2008.
The minimum salary for central government employees has been fixed at Rs 18,000 per month by the seventh pay commission.
Pay Commission recommendations not to upset fiscal roadmap: RBI Governor Raghuram Rajan
RBI Governor Raghuram Rajan today said the Seventh Pay Commission recommendations will not upset fiscal maths as additional expenditures will be offset by either surplus revenues or expenditure cuts.
In the fifth bi-monthly monetary policy review for 2015-16, the Reserve Bank said the implementation of the Pay Commission proposals, and its effect on wages and rents, would be factored in by the RBI in its future deliberations.
"In the broad sense, yes there is going to be additional expenditure, but that will be offset presumably by either additional revenues raising or cuts elsewhere so that the fiscal consolidation path is maintained," Rajan said while addressing reporters after the monetary policy statement.
The 7th Pay Commission has recommended increase in remuneration of about one crore government employees and pensioners which is estimated to impose an additional burden of Rs 1.02 lakh crore on the exchequer in 2016-17.
The new pay scales, subject to acceptance by government, will come into effect from January 1, 2016.
Rajan said the government had anticipated the consequences of Pay Commission recommendations and hence the fiscal path is expected to be maintained.
"We don't feel there will be a significant effect on aggregate demand provided you maintain the fiscal path. Of course, investment in some ways may be (of) higher quality than certain kind of spending and therefore one would hope that you would uncover space elsewhere for the public investment which we really need," Rajan added.
In the monetary policy statement, RBI said the direct effect of Pay Commission implementation and its "effect on aggregate demand is likely to be offset by appropriate budgetary tightening as the government stays on the fiscal consolidation path".
The government had unveiled a fiscal consolidation roadmap in 2015-16 Budget under which fiscal deficit was to be brought down to 3.9 per cent of GDP this fiscal, 3.5 per cent in 2016-17 and 3 per cent by 2017-18, respectively.
Fiscal deficit in 2014-15 was 4 per cent of GDP.
RBI Deputy Governor Urjit Patel said the increase in the House Rent Allowance of government employees post Pay panel award would get reflected in the retail inflation data.
"But that is a one time level change and unless there are wider externalities, we will most likely look through that... The impact will be felt from April onwards for 6-8 months. You will see an index change, but that will likely be looked through by RBI," Patel said.
Several rating agencies and brokerages have said that a proposed 23.6 per cent hike in salaries and pensions of government employees could hurt India's finances.
Source:-The Economic Times
NFPE Leaders sitting on hunger fast
NFPE Leaders sitting on hunger fast
at Jantar Mantar , New Delhi
01 DECEMBER-2015
CONGRESS OPPOSES PAY COMMISSION REPORT, WANTS MORE BENEFITS FOR LOW PAID EMPLOYEES
New Delhi: Delhi Pradesh Congress Committee president Ajay Maken said on Sunday that his party will fight for safeguard of central government employees interest as the Seventh Pay Commission has increased the salaries of higher grade officers by many folds, there will be no benefit for middle and lower level employees.
“The Congress party is with the central government employees in this matter”, he said.
He also said the Congress party will strongly oppose if the 125 percent increase in DA (Dearness Allowance), which will be due on 1 January, 2016, is not merged with the basic pay when the Central government implements the recommendations of the Seventh Pay Commission for central government employees.
While Maken recently raised the issue at an AICC briefing, he organised camps at R K Puram and Sadiq Nagar areas on Sunday.
Maken asserted the Congress party will spare no effort to protect the interests of the central government employees, who are its “eyes, ears and brains”, inside and outside Parliament.
Maken said the House Rent Allowance (HRA) has been reduced from the existing 30 per cent to 24 per cent, 20 to 16 per cent and 10 to 8 per cent.
He also said if there was “good” entry in the CR (Confidential Report) of the central government employees, they used to get MACP, but according to the Seventh Pay Panel recommendations, the government employees would get MACP only if there is a “very good” entry in their CRs.
More areas in Delhi where central government employees, live would be covered in the coming days, he said.
Maken believes this will help the party gain a foothold among the staff who constitute a significant percentage of city voters.
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