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7THPAYCOMMISSIONINFO

Congress is planning to Protest if DA and Basic pay is not merged

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Dec 292015
 

Congress is planning to Protest if DA and Basic pay is not merged

Congress is planning to protest the ruling government. Congress people want the government to merge DA with the basic pay. They want these changes to be done in the upcoming 7th pay commission for central government employees. This will add an extra burden to the ruling government.

Congress is planning to Protest if DA and Basic pay is not merged

In relation to the 7th grade pay commission, Ajay Makan who is the current president of Delhi Pradesh Congress Committee said, with the new 7th pay commission, employees with higher grade will get most of the benefits but employees with middle and low grade pay won’t be getting much benefit. He said this while address the two meetings which were held at Sadiq Nagar and R.K Puram.

Further he added that congress party do each and everything so that employees get the best benefits. This is the reason why he is working towards the merging of DA with Basic Pay.

Good deal is very important in order to engage the employees and the people with good minds gets attracted towards Government Services. Government is need of the people who are well educated and can give tough competition to the professionals. These days are through globalization MNC’s are not pushing their way to add such clauses because it would be harmful for the interest of nation and the people living in it, said by Mr. Maken.

He also said that the new 7th pay commission is against the benefit of middle level employees because there won’t be an increase of 14.5% in the wages of employees working for central government. In case of lower level employees it would be lower than 14%. But the current government is claiming an hike of 24% in wages for all central government employees.

He also said that the section officers which consist of UDC’s and PA’s will result in downgrading as per the pay panel recommendations. In the 5th and 6th pay commission there was an hike of 40%. It’s really very shocking that 52 types of allowances which employees were getting in 5th and 6th pay commission were removed in 7th pay commission recommendations. The removal of allowances includes Transport allowances which were there in merged state with DA.

So in short, 7th pay commission won’t bring much benefit for the central government employees. These were the words of Mr. Maken in related to the protest they are going to do if DA is not merged with Basic Pay.

Death Gratuity Report

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Dec 182015
 

The 7th Pay Commission which was announced in Sept. 2015 a report was furnished to modify the current Death Gratuity structure of all Central Govt. employees. There were some discrepancies in the old structures of death gratuity, for which the families of the dead pensioners were suffering. The 7th Pay Commission was submitted on 3rd September, 2015 by a bench headed by retired Supreme Court Justice of A. K. Mathur. This new Pay Commission was submitted to the Finance Ministry, which is currently headed by Finance Minister Arun Jaitley. This new pay commission brings with it a lot of joys, surprises, fulfills many expectations and also falls short in some areas. According to sources, it will get implemented from 1st Jan, 2016.

Near about 48 lakh Govt. employees working under central govt., public sectors, universities, etc will get benefits of the new pay structures stated under the new pay commission. In addition to this, all pensioners of central govt. which counts approximately 55 lakh will get their pension structures revised and hiked along with other allowances. This new pay revision will bring about 23.55% increments in basic pay and a 63% increment in several allowances received by the central govt. employees. The annual hike in salaries is kept 3% as previous. That means the net salaries are expected to go up by 16% aggregate. According to the commission reports, the minimum salary of govt. employees will be Rs. 18,000 where as the maximum will shoot up to Rs. 2.5 lakh. Following protests for One Rank One Pension (OROP), the defense service employees were given special preference this time. Parity is suggested to be brought between the pension structures of the past retired defense personals with the pension structures of the currently retired defense personals. Also allowances like Military Pay Service (MSP), Siachen Allowance, etc. are proposed to be hiked by a large extent.

The current structures in Death Gratuity is also reported to be rationalized by the commission as there were some ambiguities in the current one specially in the 5 year – 20 year slab. Death Gratuity is a one-time amount paid by the Govt. to the family or widow or the nominee of a govt. employee in case of death before retirement. This lump sum amount helps to give some financial support to the dependable family members of the dead Govt. employee during service. This gratuity is granted to all employees, be it permanent or temporary on contractual basis. Following some dissatisfaction shown by the Department of Pensions, the rates for Death Gratuity is framed newly in this 7th Pay Commission. There are various slabs according to which Death Gratuity is calculated. The new rates are as follows:

 

Service PeriodDeath Gratuity
Less than 1 year2 times of Basic salary
1 year or more but below 5 year6 times of Basic salary
5 years or more but below 11 years12 times the Basic salary
11 years or more but below 20 years20 times the Basic salary
20 years and aboveHalf month emoluments for every complete 6 monthly period of qualifying service subjected to maximum of 33 times of monthly emoluments

Table reference- http://india.gov.in/nomination-retirement-gratuity-death-gratuity.

The Present Market Scenario-by Nilesh Shah

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Dec 132015
 

The Present Market Scenario-by Nilesh Shah

According to Nilesh Shah the market is in a very unstable scenario and the earnings are yet not recovered. There are many concerns about the global market, Fed hike uncertainty being one of those. The market is in a range bound scenario.

After the stage of consolidation that has been happening from the last 12-18 months, there is an increase in the earnings and the overall position of the market, Nilesh Shah claimed in one of his interviews with CNBC-TV18. If the same hike continues for the coming quarters as well, then only there will be a better situation and the market will start recovering.

The economy has been growing, hence the interest rates have been lowered and the government has been spending in infra spaces, he added. Moreover, after the 7th Pay commission the consumption related sectors will also enjoy a boon. The bill will also be quite beneficial for the organized sector, he said.

Here is a summarized conversation between Nilesh Shah, Latha Venkatesh and Sonia Shenoy during the interview on CNBC-TV18.

Latha: How do you see the market for the next three-six months?

Nilesh: We are still in the stage where the earnings are not yet recovered as expected and there may be rate hike in US also. Many such global concerns are keeping our market in a range bound state. But we hope that in the near future the situation will be more optimistic and the improvement can be seen after December 2014 quarter and it will be seen that on YOY basis the earnings will be recovered.

Moreover, our economy is climbing high and there has been a deduction in the interest rates and the government is spending more on infrastructure related sectors. All these will positively impact the economy, going forward. After the 7th Pay commission also many sectors related to urban consumption will see improvements.  The market has seen a niche and not given much to the investors but in the coming 12-18 months things will settle back in place and there will be a rise in the earnings.

Sonia: Talking about the big cue, the goods and service tax revenue rate which is 15-15.15.5 percent will prove to be a positive game changer to curb the direction of the market?

Nilesh: There could be a reaction from the market initially. We just hope that GST bill looks to be more certain after the announcement of the assured rate. But still it is important to study to study GST in detail and figure the stocks and this will help us.

We believe that the organized sector had faced unfair competition from the unorganized sector and the same will benefit from the GST as the unorganized sectors will fall in the tax net. Hence, now the focus is to find out the details and pick the stocks where there can be growth on volume, which is constrained due to the unfair competition that they have been struggling with.

Cascading effect of pay hike

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Dec 122015
 

Cascading effect of pay hike

The hottest topic of discussion among the central government employees is the 7th pay commission. It is expected to be implemented from the next financial year. The recommendations have already been made to the government. On average, it includes a 23% hike in pay and allowances. The minimum pay is will be set to Rs. 18,000 and the maximum amount goes to Rs. 2.25 lakh per month, which is that of the cabinet secretary. Presently the max salary is 90,000 per month. The ceiling for gratuity will also be raised to Rs. 20 lakh that is Rs. 10 lakh right now. Though these are recommendations, but the union government will have to implement them without modifications.

After the 7th pay scale is implemented, the government is expected to spend Rs. 1.05 lakh crore more on salaries, allowances and pensions per annum. It will have a bad effect on the union budget. Other expenses, like education and infrastructure, might not get as much money as they do today. For state governments, the effects will be even worse. After the 7th pay scale in center, state employees will also expect and demand a hike. The employees of West Bengal have already started asking for a raise. This affect will resonate across the country.

If we only consider West Bengal for now, its salary bill presently costs Rs. 33, 650 crore. If we also include the retirement benefits, the total expense goes to Rs. 47,218 crore. This means that out of their total annual revenue of Rs. 105,978 crore, slightly less than half is spent on salaries. If the salaries are raised, it will get an even bigger slice of the total revenue. The state government will then be left with hardly anything for development. West Bengal already has a debt servicing charge of Rs. 28,000 crore per month. Chief Minister of the state has repeatedly requested a moratorium on this amount for the next three years. Only then the state will be able to fulfill its social and political needs. But these requests have not been heard by the center.

Besides the issues mentioned above, inflation is also a very big problem associated with pay hike. The landlords in Delhi will increase the rents the same day 7th comes into play. Though the pay hike is considered as a gift from the government to its employees, it will bring many problems for the citizens. Thus, there is a need to take a fresh look at these issues before taking any steps.

Dec 092015
 

7th Pay commission Minimum & Maximum Pay Ratio 1:12.5

The maximum and minimum salary ratio has created a lot of discontent among the central government employees. The employees have also sent many dissent letters to the government addressing their concerns for this. According to the 4th CPC the ratio between the maximum and minimum salaries was maintained as 10.7 and in the 5th CPC the ratio was proposed to be 10.97 in the recommendations but the ratio that was implemented was 1:11.76. This decision was taken by the Bureaucrats for their self-benefit.

7th Pay commission Minimum & Maximum Pay Ratio

After the implementation of the 6th Pay commission the maximum and minimum salary was raised to 1:12.85. This ratio was the same for the maximum and minimum salaries and pensions of the government employees and armed forces. This figure was very high in comparison to the ratio America and Britain. Implementation of the 6th CPC created many negative effects in the economy affecting the income inequality of the central government employees. Moreover, there was even inequality within pre 2006 retirees. The Bharat Pensioners Samaj also demanded that the ratio between the lowest and highest scale should be immediately brought down to 1:10 and there should be complete parity between the pre and post retirees. The maximum and minimum pension and salaries ratio was 2:1 till the 3rd Pay commission, but it was raised to 3.5 (65000):1(18000). This is the ratio for both pay and pension along with other post- retirement facilities. In our country there is a huge gap where the poor remain underprivileged and the billionaire community is increasing and growing. This inequality can be really dangerous for the country as it is the reason for corruption and crime to breed.

If equally the difference is not controlled in the pay and pensions in India, it will create uncontrolled discontent and frustration among the government employees and armed servicemen. In the dissent letters the government employees and armed officers have demanded that the ratio between the maximum and minimum salary and pension should be lowered to 2:1. This inequality can be really dangerous for the country as it is the reason for corruption and crime to breed. Hence the ratio needs to be reduced for the country to grow and motivate the government employees to contribute with their talent.

Following is the table for reference.

Central PayMinimumMaximumCompressionNumber of Pay
Commission (CPC)SalarySalaryRatioScales
 (Z)(Z)  
     
I CPC   (1946-47)55200001:36.4150 → 30
I CPC  (1957-59)80300001:37.5500 → 140
III CPC (1972-73)196350001:17.9500 → 80
IV CPC (1983-86)750800001:10.7153 → 36
V CPC (1994-97)25502600001:10.251 → 34
VI CPC (2006-08)70008000001:11.435 →19
[4 PBs with
15 GPs+ 4
distinct wales]
7cpc Ratio – 1:12.5  Minimum Pay/Maximum Pay—-18,000/2,25,000    

 

 

Levels as per the Pay Matrix

 

Existing PayExisting levels ofAvailableNew Levels
BandsGrade Payfor*
PB-11800C1
1900C2
2000C,D3
2400C4
2800C,D5
PB-23400D5A
4200C,D6
4600C,D7
4800C,D8
5400C9
PB-35400C,D,M10
5700M10A
6100D10B
6100M10B
6600C,D,M11
7600C12
PB-47600M12
8000D12A
8400M12B
8700C13
8700D13
8900C13A
8900D13A
9000M13B
10000 14
HAG15
HAG+16
Apex17
Cabinet Secretary, Defence Chiefs18
C: Civil; D: Defence; M: Military Nursing Service (MNS)   

http://govtblog.in/7cpc-minimum-maximum-pay-ratio-112-5/

 

 

Amendment in Delhi’s education policy might result in huge protests by the teachers

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Dec 072015
 

Amendment in Delhi’s education policy might result in huge protests by the teachers

New Delhi, December 01, 2015, the ruling Aam Aadmi Party (AAP) Party is trying to make a few amendments in the Delhi School Education (DSE) Act, 1973, and verification of Delhi school Bill, 2015. The private school management and the educationists are trying to carry out massive protests to oppose the bill.  The DSE Act 1973 bill with few modifications have been passed by the HRD Minister, Manish Sisodia last month by deleting one of the sections, which actually assures that the private school teachers are paid salaries and get benefits equally to that of their government counterparts.

However, this rule actually takes away the right of the private school employees to get paid equally to that of the government school employees. As per the clauses in the law, the employees of the private school can get the benefits and payments that are revised under central pay commission on a regular basis. But, if the changed ACT is passed, then the private school employee will not be entitled to get the claims that they use to get previously when this 7th pay commission comes into force told the Ashok Agarwal, the advocate and the president of All-India Parents Association.

The provision that was being implemented after 42 years of struggle would go futile, if the AAP party passes the amendment bill. The people of Delhi have trusted AAP party and voted them to protect the rights of the employees, but rather the government is trying to take away the rights of the employees.

The BJP and congress parties did not come to the rescue of the private employee alleged, Agarwal. Indeed, the amendment to the bill has been made on the force from the private school management. Moreover, Agarwal fired on the government for this filthy move.

Consequences of changing this act

When this act comes into force, then the teachers cannot claim even the minimum wages that they are entitled to get. Moreover, this bill once passed, would make the private teachers as a domestic servant and this directly results in reduction of their salaries and indeed court could not come to the rescue of the employee said, Agarwal. Another education activist, Shantha Sinha told that this amendment bill when passed will slam the dignity of teachers. To give equal respects for these professional like others, the government should withdraw this attempt. The private school teachers warned Arvind Kejriwal to withdraw this move and one of the teachers told that, the Chief Minister has deceived the teachers by making changes to the bills, which actually takes back the right of the private school teachers to get paid equally with their government counterparts.

Fee regulation bill

Another burning issue in Delhi is Fee Regulation Bill. This bill was introduced by the HRD minister in the Delhi government office and told that, it is daunting for the middle class people to afford private school education, so to elude such consequences we have proposed this bill. The intention of the bill is to maintain regulation and accountability. As per the bill, the government forms a committed and visit the private school to cross check all their accounts. If any school found to be charging exorbitant fees, then the committee will make sure that the aspirant gets back the extra fee he paid and revamps the school fee structure. During the committee visit to the school, the school management is required to submit their financial returns along with the fee structure. If any school fails to submit their returns will be incarcerated. Many renowned lawyers said that, this bill is of no use and do not address any issue of exorbitant fee hike.

Raghuram Rajans says roadmap of this fiscal year will not get disturbed due to 7th pay commission

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Dec 042015
 

Raghuram Rajans says roadmap of this fiscal year will not get disturbed due to 7th pay commission

Mumbai, December 1, 2015, Raghuram Rajan, Governor of RBI during his interview told that the implementation of 7th pay commission will not have any severe impact on this fiscal year’s expenditure, “the RBI will try to offset the cost either by generating more revenue or by curtailing the expenditure”, he said.

In the bi-monthly monetary policy review for this fiscal year, the RBI told that the proposal of 7th pay commission and their effects on salaries and rents will be discussed soon. Though, there will be an additional burden, but this is totally compensated either by generating additional revenues or by cutting the costs to maintain the annual expenditure without surging or slumping down told the RBI governor, Rajan to the reporters after making monetary policy statement.

The 7th pay commission will hike the salaries of the government employees and the petitioners, but this cause an additional burden on the government treasure by over 1.02 lakh crore for the coming couple of years. However, the pay scales after a hike, will come into effect from January 01, 2016. A Prediction about the implementation of the 7th pay commission has been expected by the governor and he has done his best to maintain the expenditure on beforehand.

However, there would not be any predominant effect on the aggregate demand until and unless the fiscal year’s expenditure is maintained. Undeniably, investments would be pretty high than spending’s, and the RBI would persuade more public investment, which actually are very helpful in the current scenario told, the RBI governor.

During the monetary policy meeting, the RBI made a statement that with the implementation of this 7th pay commission, the aggregate demand will be balanced by tightening the government budget of this fiscal year. A few months ago, the government has revealed the 2015-2016 budget in which the shortage of this fiscal year budget was falling down to 3.9 percent GDP, subsequently, it is slid down to 3.5 percent in 2016-2017, and 3 percent in 2017-2018. It has to be observed that the fiscal deficit for the prior fiscal year 2014-2015 is 4 percent GDP.

According to the statement made by the deputy governor of RBI, Urjit Patel, the hike in the house rental allowance of the central government employees after the release of new pay scale would have high impact on the retail inflation data. However, this impact will be there only once and it may continue depending on the externalities. This impact will be seen from the next fiscal year April for 6 to 8 months. You will notice a slight change in the index, but this is overlooked by the RBI, told the Deputy Governor.

As per the views of the agencies and brokerages, increase of government employees and petitioner salary to 23.6 percent would hit the economy of the government.

Congress warns government on pay commission report

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Dec 042015
 

Congress warns government on pay commission report

The 7th pay scale that is about to be implemented from 1st Jan, 2015 has a hot social and political topic. The citizens are worried about the inflation that will follow the pay hike. Landlords in Delhi have decided to increase the rents on the same day. And the politicians are having an argument over how helpful the hike really is. According to the recommendations of the pay commission, the salaries will be raised by 23% on average. While the salary of cabinet secretary will be raised from Rs. 90,000 to Rs. 2.25 lakh, for a low level employee it will go from Rs. 15,000 to Rs. 18,000 only. The Congress leaders in Delhi are saying that this is not fare for the medium and law scale employees.

It is no secret that a government job is never the first choice of a student who belongs to the creamy layer. The low pay, slow growth and other bad policies keep the best brains of the country away from these jobs. This is one of the main reasons for the lack of planning in the government projects. According to the Congress leaders, the 7th pay scale will make the already bad situation worse. The minimal hike at the entry level jobs will keep the intelligent youths from applying for govt jobs. The Congress party is thus standing firmly against the center government for the rights of medium and low scale employees.

Another hot topic in Delhi is the Jan Lokpal bill that is about to be presented in the Assembly. The bill has already been passed by the cabinet and will be tabled soon. Congress party has strongly said that it wants an effective Lokpal Bill and not the dilution presented by AAP the last time. It is also in favor of adding the departments controlled by the center, like DDA and Delhi police, under the bill. However, the party is holding back any official comments until the bill is tabled and properly discussed in the Assembly.

AAP came into power with the promise of ending corruption in Delhi. The main step this government is going to take for that purpose is bringing the Lokpal into action. While the part promised an immediate implementation of this bill, it has already wasted 10 months in presenting it in the Assembly. But this will still not be held against them is the bill is implemented properly.

Strange and outdated allowances: 7th CPC gets them scraped

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Dec 042015
 

Strange and outdated allowances: 7th CPC gets them scraped

It is hard to believe that the government employees are given perks that are as meager in amounts as Rs 5 per month. there are almost 200 such allowances that the 7th Central Pay Commission finds not worthy of even calling allowances and have proposed to scrape them. CISF receive a hair cutting allowance of Rs 5 per month but this allowance has no relevance today. Hair cutting is already accommodated in the personal maintenance allowance of the cadre.

There have been 6 central pay commissions before this one and no one could ever notice these irrelevant allowances that prevail in various government agencies. Similar to the above example is that of the postal department. This department’s employees enjoy Rs 90/month as cycle allowance which is sanctioned only if the proof of use of cycle is provided to the department by the employee. In the same way the IFS officers are given Rs 100 for learning a foreign language; if they achieve levels above proficient the allowance increases to Rs 200. This amount is too low to learn a language. Basically these perks and the amount given have not been revised since many years and this has led either the perk or the granted amount to become outdated.

So Justice AK Mathur, Chairman of the 7th CPC has recommended abolition of 52 allowances in the report submitted to the ministry of finance 10 days ago. The reason stated is that the named allowances have no significance in the present time.

Apart from the above mentioned allowances there various others which deserve a mention in this article such as:

Soap toilet allowance: this allowance is given to the personnel of Assam rifles who are in combat. The amount that was allotted per month was Rs 90. The 7th CPC has recommended its abolition as this is covered in the composite personal maintenance allowance.

Diet allowance: this allowance is given to those on deputation to bureau of immigration as food compensation but the amount of Rs 200 is too meager and the justification is invalid for this allowance to continue

Funeral allowance: this is also being scraped due to invalid justification

But there are a few allowances that are to be continued such as:

The briefcase allowance is for the secretary level employees of the government and the amount will be further increased with every DA.

Book allowance: for the trainees of IFS this book allowance will continue but only for learning foreign languages.

7th Pay Commission on Pension Pay and much more

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Dec 042015
 

7th Pay Commission on Pension Pay and much more

There are couple of proposals of the Commission where there was no unanimity of perspective and these are as per the following:

The 7th Pay Commission suggests an amended benefits detailing for common workers including CAPF faculty and additionally for Resistance staff, who have resigned before 01.01.2016. This plan will achieve equality between past beneficiaries and current retirees for the same length of administration in the pay scale at the season of retirement.

7th Pay Commission on Pension Pay

The past beneficiaries might first be settled in the Pay Framework being suggested by the Commission on the premise of Pay Band and Grade Pay at which they resigned, at the base of the relating level in the pay lattice.

This sum should be raised to land at the notional pay of retirees, by including the number of augmentations he/she had earned in that level while in administration at the rate of 3 percent.

“The Edge” is in a matter of seconds concurred to the Indian Administrative Service (IAS) and the Indian Foreign Service (IFS) at three advancement stages from Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and the NFSG is prescribed by the Administrator, to be reached out to the Indian Police Police(IPS) and Indian Forest Service (IFoS). Higher Authority is of the view that financial edge is justified only for the IAS and IFS. A few individuals are of the perspective that the budgetary edge agreed to the IAS and IFS ought to be evacuated.

“Empanelment” The Executive and boss part prescribe that All Indian officers and Central Services Group officers who have finished 17 years of administration ought to be qualified for empanelment under the Focal Staffing Plan and there ought not be “two year edge”.

“Non-Functional Upgradation for Organized Group “A” Services” the Administrator is of the perspective that NFU benefited by all the organised group. Services ought to be permitted to proceed with and be extended to all officers in the CAPFs, Indian Coast Guard and the Defence powers. NFU ought to consequently be founded on the separate residency periods in the former substantive evaluation

“Superannuation” the Director prescribe the period of superannuation for all CAPF work force ought to be 60 years consistently.

On account of defence forces personnel, this sum will incorporate Military Service Pay as permissible.

Fifty percent of the aggregate sum arrived should be the new benefits.

An option count will be done, which will be a multiple of 2.57 times of the present current basic pension.

The retired person will get the higher of the two.

Considering the issues raised in regards to the Grade Pay structure and with a perspective to acquire more noteworthy transparency, the present arrangement of pay groups and grade pay has been abstained from and another pay grid has been composed. Grade Pay has been subsumed in the pay lattice.

The Commission got numerous grievances identifying with NPS. It has prescribed various strides to enhance the working of NPS. It has likewise prescribed foundation of a solid grievance redressal system. The status of the worker, up to this point controlled by evaluation pay, will now dictate by the level in the pay lattice.