Jul 31, 2015

7th Pay Commission - Fix minimum wage with provisions of indexation – Item No.5 Charter of Demands

Fix minimum wage with provisions of indexation – Item No.5 Charter of Demands

Item No.5.
Fix minimum wage with provisions of indexation.
(i) Effect wage revision of the Central Government Employees from 01.01.2014 accepting memorandum of the staff side JCM; ensure 5-year wage revision in future; grant interim relief and merger of 100% of DA; Include Gramin Dak Sevaks within the ambit of 7th CPC. Settle all anomalies of 6th CPC.

The 7th CPC was set up in 2013 by the then Government consequent upon the continuous struggles undertaken by the Central Government under the leadership of the Confederation of Central Government employees and workers. Under its banner various struggles were carried out from December, 2010 till the announcement of the setting up of the 7th CPC. During this period, the Confederation organized one day strike on 12th December, 2012 and again two day strike action on12th and 13th February, 2014. As per the terms of reference, the Commission is to submit its report within 18 months. If they abide by the stipulated time frame, its report must be available by the end of August, 2015. In this context, the formulation made before the Commission untidily by all organizations of the Central Government, especially those participating in the National negotiating forum of JCM is worth reproducing.

All previous Pay Commissions were of the opinion that wages cannot be determined on any single principle but has to be based upon a combination of all the enunciated principles or those principles are to be factored into the process of quantification. Since the Government as an employer had not been able to grant the need based minimum wage to its own employees till date we are of the opinion that the 7th CPC must endeavour to compute the wage structure on 15th ILC norms. We suggested two other principles to be factored in to the quantification of pay beyond the minimum level. We enumerate hereunder the factors to be taken into account:

1) The Need-Based Minimum Wage concept to compute pay at the minimum level.

2) The intrinsic value of the job content of each grade and post at the intermediary level to be assessed by an expert committee. Pending finalization of such a study, the Commission may maintain the presently existing vertical and horizontal relativities.

3) To take into account the outside rates to determine the pay package at senior levels of bureaucracy but maintain the ratio between the minimum and maximum at 1 : 8 (MTS: Secretary to Govt. of India).

We make the above suggestion, being just and reasonable on the following grounds:
1. The Fair Wage Committee has held that an industry which is incapable of paying minimum wage has no justify to exist.

2. 86% of Central Government Employees are industrial or operational workers.

3. The need based minimum wage concept formulated by Dr. Aykhroyd and approved by 15 ILC was considered the most important principle in computing salary of Government employment especially of those lower level functionaries, by the 2nd, 3rd, 4th and 6th CPC.

4. It is only the fear of a heavy financial implication and the incapacity of the Indian economy at the relevant point of time, to meet the extra expenses the 2nd, 3rd and 4th CPCs were constrained to alter the formula itself with the opinion of certain nutritional experts. The legitimacy provided to Dr. Aykhroyd formula by the 15th ILC (in which the representative of Labour, Employers and Government participated) was not available for any other conceptual frame work proposed by any other “experts”. The 4th Pay Commission cited the per capita net national product increase over the years to justify lower minimum wage than what could have been as per the ILC norms. It could be seen that the earlier Pay Commissions had adopted a different principle other than the Dr. Aykhroyd formula due to financial constraints.

5. Despite elaborately detailing the concept of living wage and the amendment to the preamble of the Indian Constitution, the 4th CPC stated that the per capita net national income increase if factored would not allow them to fix the minimum wage at a higher level than Rs.750/-.

6. Even though no specific reference on the adoption of the concept of need based minimum wage was made by the Government, the 5th CPC did dwell upon it. They advocated that the 25% addition suggested by the Supreme Court to enable the worker to meet the expenses, viz., children education, medical requirements, social obligation connected with festivals, marriages, etc. must be added to arrive at the minimum wage. However, they computed the minimum wage discarding the same principle but made the percentage increase of the per capita net national product over a period of ten years as the base (or the constant relative income criterion as the most equitable norm). In order to arrive at the minimum pay, the Commission added 30.9% over the emoluments of a lowest paid employee as on 1.1.1996.

7. The 6th CPC adopted the 15th ILC norms to compute the minimum wage but made several changes to the concept Viz., the retail prices of the commodities, which goes into the reckoning was altered; the stipulated 10% for housing and 25% for social obligations, medical, children education, etc. were discarded on the plea that separate allowances had been granted. Dr. Aykhroyd had factored 7.5% as housing component in the computation of minimum wage. The question of incorporating the cost of requirement for medical, education and other social obligation was the subject matter of litigation before the Supreme Court. The Hon’ble Court directed that 25% of the minimum wage so computed must be added as a factor for the above requirement of a worker, which had not been taken into account by the ILC norms.

The contention of the 6th CPC that since children education allowance, Medical and house rent allowances are specially granted to the Central Govt. employees, the same must be taken out of the reckoning is not only wrong but also amounts to contradiction of a stand taken by the Highest judiciary of the country- Supreme Court. The 6th CPC has failed to take note of the fact that the allowances, be it HRA, Children Education allowance or Medial, granted are awfully insufficient to meet the requisite expenses. Had it not been the case, the 3rd CPC also ought to have taken the similar stand adopted by the 6th CPC. The computation appearing in page No. 60, Chapter 6 (3rd CPC report) establishes our view in the matter.

We have given in Table (.5.1..) the computation of minimum wage as per 15th ILC norms. The retail prices of the commodities/articles are the average of the retail prices ruling as on 1.1.2011 at the following cities:
1. New Delhi,2 Mumbai, 3. Chennai, 4. Kolkata, 5 Hyderabad, 6. Bhubaneswar, 7. Thiruvananthapuram, 8. Bangalore.

The minimum wage as per our computation works out to Rs.20,856/-. This must be the minimum wage for the unskilled worker as per the ILC norms. In Central Government employment presently there is no unskilled labour. The lowest level of employment is multiskilled worker/employees. The minimum educational qualification prescribed is either ITI or matriculation (10th Standard). The percentage increase of the wages of a skilled worker to that of an unskilled worker on an average had been more than 25% all throughout. We have therefore added 25% to arrive at the minimum pay for the lowest employee in Government service, which comes to Rs. 26,071/- , i.e. Rs. 26,000/- when rounded off.

Incidentally, we may mention that the minimum wages at the level of an unskilled worker as per recent wage agreement in Coal India Ltd. Is Rs.29697/-. The per-capita Net National Product increase at factor cost between – (2004-05 – 2011-12) years as per the Economic Survey for 2012-13 presented to Parliament is 57.55..%. This, if applied to the present wage at the lowest level shall work out to Rs.22857/-. For the reasons stated in the preceding paragraphs and more specifically for the reason that the Government has presently the capacity to pay as detailed in this memorandum, we request the 7th CPC to recommend the minimum pay to be assigned to the lowest level of Group C functionary in Government of India service at Rs. 26,000/-.

Another important issue, we took with the Government was the inclusion of the Grameen Dak Sewaks of the Postal Department within the ambit of the consideration of the 7th CPC. The Government did not concede our demand. The Postal Department had been objecting to this demand consistently on the plea that the Grameen Dak Sewaks were not civil servants. They had, therefore, resorted to setting up separate committees to consider the service conditions and wage rise of the Extra Departmental Agents, or Grameen Dak Sewaks. It must be stated with some satisfaction that during the negotiation that took place with the organizations of the Postal employees on the eve of the commencement of the indefinite strike action, the Postal Department had to agree to recommend the acceptance of this demand to the Government, though belatedly.

Despite the said belated suggestion made by the Postal authorities, there had been no positive response from the Government of India till date with the result the GDS, a significant segment of the Postal Department will be denied the wage revision along with the other Central Government employees, if immediate steps are not taken by the Government to ask the Commission to consider their case within a stipulated time. We give hereunder the reasons we have advanced for inclusion of GDS within the purview of the 7th CPC.

Grameen Dak Sewaks constitutes the single largest chunk of the postal workforce. Without them perhaps the rural postal system in the country will break down. The dedicated service of the Grameen Dak Sewaks keeps the postal department operational throughout the year.The system of Extra Departmental Agency was introduced by the colonial British rulers to reduce the running expenses of the postal system in the country. The exploitative system continued even after independence. By excluding the Gramin Dak Sewaks from the purview of inquiry of the Pay Commission, the Government wanted the system to continue as a means to reduce the running expenses of the Postal Department. The exclusion is sought to be made on the specious plea that the GDS are not Civil Servants.

The Government’s contention on this score had been the subject matter of judicial scrutiny. The Honourable Supreme Court has held that the Extra
Departmental Agents are holders of Civil post. The 4th Central Pay Commission also held the same view and asserted that their service conditions must be inquired into by the Pay Commission. However, when the 5th CPC is constituted, Government set up a Committee under Justice Talwar to look into their case. The Government did not implement many of the recommendations of the Talwar Committee. It is in this context we plead that the Gramin Dak Sewaks must be brought within the purview of the 7th Central Pay Commission and justice rendered to them.

Source: 7thpaycommissionnews .in

What are the expectations of the Central Government employees from the 7th Pay Commission?

“It is impossible for the 7th Pay Commission to fulfill all the demands of the Central Government employees. The question is – will it at least address the concerns of majority of them?”

The media is full of unconfirmed reports on the submission of 7th Pay Commission report to Central Government. Recently in an interview with a leading English newspaper, Neelakanth Mishra, India equity strategist of Credit Suisse expressed his strong opinions about the 7th Pay Commission and the implementation of its recommendations.

The big question is – what are the expectations of the Central Government employees from the 7th Pay Commission?

In an exclusive interview to NDTV, Neelkanth Mishra said that there are possibilities of a 40% hike in the salaries of Central Government employees. He believed that the 7th Pay Commission will submit its report to the Government in the month of September and the recommendations will be implemented next year.

The employees are likely to get a hike of 30-40%. This time around, the implementation wouldn’t be like it was previously, during the 6th Pay Commission, due to the amount of arrears (it is worth mentioning that the arrears dues were paid in two installments during the 6th Pay Commission). He said that the economic status of Central Government employees would increase enough to afford a car.

His forecast has to be taken seriously. On August 15, 2008, the then Prime Minister Manmohan Singh had announced that the 6th Pay Commission will come into effect from September onwards. More than the salary hike, the employees were curious to know about the arrears and how they were going to get it, because the sum was huge.

The employees didn’t make such a huge fuss about the increment they had received. Instead of small hike that was added to the salary, they were more interested in the lump sum arrears. Since it was impossible to clear 30-months’ arrears in a single payment, the government was forced to release it in two installments.

But this time, the government is particular about giving an increment in salary and allowances without keeping any pending arrears. Therefore the employees are curious to know about their salary hikes.

Source: www.cgstaffnews.in

Jul 30, 2015

7th Pay Commission - Allowances Proposed by NC JCM Staff Side to 7th Pay Commission

Allowances Proposed by NC JCM Staff Side to 7th Pay Commission

The following is the proposal of NCJCM Staff Side in respect of Allowances like Dearness Allowance, House Rent Allowance, Compensatory City Allowance and Transport Allowance which has been submitted to 7th Pay Commission. Staff side defended that HRA to be doubled from the existing rates since the Rents of accommodation is increased exorbitantly. Its Justification for increasing allowances is provided in the memorandum. It is reproduced here for readers reference..

Dearness allowance.

The neutralisation envisaged under the present computation of dearness compensation is supposed to be cent per cent, but in reality it is not the case. Actual consumer price index is much higher than the level at which DA is calculated on the basis of 12 monthly average. The average is always lower than the actual cost of living.

15.1.2. The calculation of consumer price index, its basis, the basket of goods on which it is based, are questionable and has become a matter of dispute. Since the Pay Commission being not the forum at which these issues could be taken, we do not propose to go into the details of this aspects.

15.1.3 We suggest, therefore, that the existing formula of computation of DA and its payment with effect from 1st January, and 1st July, may continue.

House Rent allowance(HRA)

The present scheme of HRA is based on the recommendation of the 6th CPC, which is as follows:

The present scheme of HRA is based on the recommendation of the 6th CPC, which is as follows: Population criteriaclassificationRate as a % of pay + Grade Pay + MSP +NPA50 lakhs and aboveX30%50 to 5 lakhsY20%Below 5 lakhsZ10%

15.2.2. We reproduce hereunder the recommendation made by the third Central Pay Commission in the matter of grant of house rent allowance. (Para 29 Part I. Vol. IV.Chapter 56), which would be the best if implemented even today.

“While we find it difficult to accept the kind of parity suggested above, we are aware of the acute problem caused by the lack of adequate government housing and by the inadequate government housing and by the inadequacy of the existing rates of house rent allowance and recommend as follows:-

(i) Government should take houses on long lease and make residential accommodation available to its employees on payment of 10% of their pay.

(ii) Government should lay down appropriate house rent allowance rates in different cities and towns based not on population criteria, but on an actual assessment of the prevailing levels of rent in different cities and towns. Alternatively, certain notional rents for different types of accommodation meant for officers and personnel of specified pay groups should be laid down for particular cities after studying the actual conditions in that city. The difference between the actual rent paid and 10% of pay should be reimbursed subject to a maximum of the difference between the notional rent and 10% of the pay. The existing norms in regard to entitlement of accommodation, size of rooms etc. could, if necessary, be reduced depending on the housing situation and the norms usually adopted by different income groups in renting accommodation in the various cities. Such notional rents should, to start with, be applied to all stations falling under the description of classified cities for purposes of House Rent Allowance, Additions could also be made to the list later on by including other cities deserving similar treatment.

(iii) Till the Government is able to make arrangements recommended in the preceding sub-paragraphs, the rates of HRA should be as follows:”

Class of city/townRate of HRAA, B-1 and B-215% of pay subject to a maximum amount of Rs.400 as house rent allowance.C class7 ½ % of pay subject to a maximum amount of Rs.200 as house rent allowance

15.2.3. The above said recommendation is still to be acted upon by the Government and the transitory provisions suggested by them i.e. payment of allowances at a pre-determined rate on the basis of classification made of the cities depending upon the population continue to be employed. The non-implementation of the above recommendation of the third CPC , has without exception, gone to depress the wage of all sections of Central Government employees as they are perforce to spend more than what they receive as HRA for obtaining and retaining the accommodation The rates prescribed by the 6th CPC, though an improvement over its predecessor Commission, has not improved the situation. The real estate value throughout the country has skyrocketed and owning an accommodation within the city/Municipal limit has become impossible for Government employees. There is not a single town/village where the real estate boom has remained unaffected. The phenomenal increase in the value of land has naturally impacted the rent, one is to pay on leasing house/flat. The house rent allowance does not bear even a small percentage of the rent. The 7th CPC may recommend to the Government to act upon the suggestion made by the 3rd CPC without any further delay. Pending action on the part of the Government, the Commission may suggest the following rates of House Rent allowance;

X classified cities  60%Y classified towns  40%Z classified/unclassified places  20%

 Compensatory City allowance.

The Compensatory City allowance has been granted to Central Government employees since the First Central Pay Commission. This allowance was sanctioned to compensate for the high cost of living in bigger cities classified as such for grant of house rent allowance. Upto 3rd CPC it used to be certain percentage of pay for different pay ranges and different classified towns. The 4th and 5th CPC, however, recommended lump sum amounts as CCA. 5th CPC in para 106.10 (Pge 1582) of their report has commented that

“We also do not support the demand for making CCA a percentage of basic pay because this amounts to admitting a firm and casual relationship between CCA and income.”

15.3.2. When it is admitted that CCA is essentially an allowance given to offset the imperfection in Dearness allowance as a measure of relative expensiveness of classified Cities, it really becomes an additional DA. When the DA is at a percentage of Pay, how can CCA not be fixed as a percentage of pay. The basis on which the lumpsum amount of CCA was recommended by the 4th and 5th CPCs had also not been disclosed and therefore, it appears to be an arbitrary decision. The 6th CPC on the other hand recognised that the only two factors viz. accommodation and transportation contribute to high cost of living in classified towns. They, recommended the revised HRA and Transport allowance to adequately compensate for relative expensiveness of the classified cities. In view of that contention, they stated that the CCA stands subsumed in Transport allowance. We are unable to agree with the idea of subsuming CCA in Transport allowance as recommended by the 6th CPC on the consideration that the relative expensiveness in bigger cities is only on account of problems of accommodation and transportation. There are various other factors due to which the expensiveness of a particular city either increases or decreases. CCA was a component in determination of overtime allowance prior to the implementation of the 6th CPC recommendations. By allowing this to be subsumed in the transport allowance, it became difficult to factor the CCA component in the computation of over time allowance.

15.3.3.For these reasons, we propose the Commission to recommend the following rates of City Compensatory allowance:

Pay RangeX Classified CityY Classified Towns.Pay upto Rs. 50,00010% of pay5% of PayPay of more than Rs. 500006% of Pay Subject to a Minimum of Rs. 50003% of Pay Subject to a Minimum of Rs. 2500

15.3.4. As the relative expensiveness affects middle class employees more severely we have provided higher rates of CCA for those in the pay range upto Rs. 50,000. We have not proposed grant of DA on this allowance.

Transport allowance.

The 5th CPC had introduced transport allowance for employees working in classified towns on account of various factors like unprecedented growth of city limits, increase in volume of traffic and non-availability of residential accommodation at reasonable rents near offices, which are usually located in the heart of cities. If these were the factors, it appears that the 5th CPC did not take into account that it is usually a low paid employees who finds residence at a very long distance from his office whereas officers are offered residences very near to their offices. If, therefore, transport allowance was meant to defray the transportation charges from residence to office and back, the higher rates ought to have been recommended for the low paid employees who were residing at a distant places. Since the 6th CPC’s recommendation in this regard was implemented, there had been several rounds of increase in the fuel charges making a cascading impact on the public transport fares. Taking these factors into account, we suggest that the following rates of transport allowance may please be recommended, applicable for all Government employees uniformly. There are several restrictions imposed for the grant of this allowance. One of them stipulates that the Government employees must be at his headquarters for certain number of days in a month to enable him to draw this allowance. There are organizations, where personnel by force of circumstances have to be out of Hqrs for months together. To deny them the transport allowance is to say the least salting the wound. These restrictions, we request the commission to recommend to the Government to be removed..

Pay RangeX classified cityOther places.Pay upto Rs. 75,000Rs. 7500 + DARs. 3750 +DA

Source: NCJCM Staff Side Memorandum

सरकारी नौकरी वालों की हो सकती है चांदी...पढ़िए कैसे?

नई दिल्ली: 'सातवां वेतन आयोग, सरकारी कर्मचारियों के वेतन को 40 प्रतिशत तक बढ़ा सकता है' ऐसा कहना है नीलकंठ मिश्रा का जो क्रेडिट सुइस के हेड इक्विटी हैं।

वेतन आयोग अपनी सिफारिश अक्टूबर में रखेगा जो अगले साल अमल में लाई जाएंगी। एनडीटीवी से हुई एक बातचीत में नील ने कहा "वेतन आयोग की सिफारिश से प्रति व्यक्ति आय में 30-40 प्रतिशत बढ़ोतरी की संभावना दिखाई दे रही है। ये पिछली बार की तरह बड़ी तादाद में तो नहीं होगा क्योंकि उसमें एरियर्स भी बहुत थे लेकिन ये तो पक्का है कि इसके बाद बहुत सारे सरकारी कर्मचारी इतना वेतन पाने लगेंगे जिससे चार पहिए की गाड़ी आ सकेगी।"

सातवें वेतन आयोग की सिफारिश आने के बाद भारतीय मध्यम वर्ग के खर्च करने के तरीके में यकीनन सुधार आएगा। यही नहीं, टीयर 3 और 4 शहरों में जहां मध्यम वर्ग का 50-60 प्रतिशत हिस्सा सरकारी नौकरी में है, वहां तो रियल स्टेट मार्केट के एक बार फिर से उठने की संभावना है।

क्रेडिट सुइस के मुताबिक अक्टूबर में वेतन आयोग की सिफारिश के बाद, केंद्र और राज्य सरकारों को इसे लागू करने में 3 से 6 महीने लग जाएंगे। नील बताते हैं कि गुजरात और मध्यप्रदेश सरकार ने सातवें वेतन आयोग की सिफारिश को एक जनवरी 2016 से लागू करने के संकेत दे दिए हैं। साथ ही नील ने चेताया की जब मध्यhttp://informationcenter.co.in/index1.php?page_id=373म वर्ग की आमदनी में एक बार में तीस से चालीस प्रतिशत का इज़ाफा होगा तो महंगाई दर के बढ़ने का खतरा भी हो सकता है

SOURCE - NDTVP

रेलवे में नौकरी कर रहे लोगों के लिए कैट का बड़ा फरमान RAILWAY KE PORMOTION ME KOI RESERVATION NAHI - CAT

केंद्रीय प्रशासनिक ट्रिब्यूनल (कैट) ने रेलवे में तकनीकी कैडर के पुनर्गठन में आरक्षित वर्ग को प्रमोशन देने के मामले में आरक्षण को दरकिनार कर केवल वरिष्ठता के आधार पर प्रमोशन देने की बात कही है। ट्रिब्यूनल ने कहा कि प्रमोशन में कोई रिजर्वेशन लागू न हो।

कैट की एक खंडपीठ ने मंगलवार को रेलवे के डीजल लोकोमोटिव वर्क्स में डीजल टेक्नीशियन ग्रेड-1 के पद पर कार्यरत 39 कर्मचारियों की ओर से दायर एक याचिका के संबंध में यह फैसला सुनाया। उन्होंने रेलवे के उस फैसले को कैट में चुनौती दी थी, जिसमें कैडर का पुनर्गठन करते हुए एससी/एसटी कोटे के कर्मचारियों को प्रमोशन में लाभ पहुंचाया गया था।

इन कर्मियों ने रिजर्व कैटेगरी के कर्मचारियों को प्रमोट कर दिए जा रहे लाभ को चुनौती देते हुए याचिका दायर की थी। इसमें कहा गया था कि यह कैडर में 50 प्रतिशत से ज्यादा की रिजर्वेशन पा रहे हैं। याचिकाकर्ताओं के मुताबिक रेलवे के पास ऐसा कोई डाटा नहीं है, जिसके मुताबिक सही रूप से रिजर्व कैटेगरी को प्रमोशन का लाभ मिले।

रेलवे के गुरपिंदर सिंह समेत अन्य टेक्नीशियनों ने भारत सरकार, डीजल लोकोमोटिव वर्क्स पटियाला के सीएओ के खिलाफ अर्जी दायर की थी।

SOURCE - chandigarh.amarujala

Seeks higher pay for Railway Board Chairman, GMs


Railway Minister Suresh Prabhu has written to chairman of the pay commission, seeking higher payscale for the posts of Chairman of the Railway Board and General Managers (GM) of zonal railways.

In the letter, Prabhu has strongly endorsed an old demand from Railways to make the GM’s post equal to that of a state’s chief secretary in pay and to give the Railway Board Chairman the same payscale as that of the Chief of Army Staff, Cabinet Secretary and a few topmost officers in the Indian bureaucracy.

“Every ministry gives representations to the pay commission. I have forwarded the one related to GMs and Chairman of Railway Board,” Prabhu told The Indian Express.

The demand is not new. In fact, the Railway Board had sent the same demand about six months ago. What is new is the endorsement from the minister, and the bureaucracy is hoping it will strengthen their case.

Earlier, payscales of GMs of zonal railways were higher than top bureaucrats in states like chief secretary, DGP, and chief conservator of forests. But over the years, while other services raised their payscales, that of the GMs, who are ex-officio additional secretaries to the government, remained unchanged.

“A railway GM’s jurisdiction spreads across multiple states. There are regular coordination issues in which he has to speak to multiple chief secretaries and DGPs. So a parity is needed. It existed earlier,” said a Railway Board member who did not wish to be named.

The case for the Chairman of the Railway Board is believed to be stronger. During the first pay commission, the Commissioner of Railways enjoyed the highest payscale among bureaucrats. It was only after the third pay commission that this changed. Now, although the Railway Board Chairman is an ex-officio principal secretary to the government, his payscale is equal to that of any other departmental secretary and the other six members of the Railway Board who have the rank of ex-officio secretary to the Government of India. If the demand to raise the payscale is accepted, the top post will get a Rs 10,000 raise in pay band and the post will reflect the stature of being a top bureaucratic position.

SOURCE - indianexpress

Jul 29, 2015

7th Pay Commission Likely to Hike Salaries By 40%: Credit Suisse

Credit Suisse's Neelkanth Mishra

The 7th Pay Commission is likely to raise the salaries of government employees by up to 40 per cent, said Neelkanth Mishra, India equity strategist of Credit Suisse. The Pay Commission will submit its recommendations in October and it will be implemented by next year.

"As the Pay Commission numbers come through there could be a 30-40 per cent increase for each individual. It won't be as big as last time because it was driven by a lot of arrears but definitely a large number of government employees will come into the pay bracket which can afford to have, for example, four-wheelers," he said in an interview with NDTV. (Watch the full interview)

Credit Suisse says about one-third of India's middle class is employed by the government and as the 7th Pay Commission comes through, there will be an improvement in discretionary spending.

"In Tier 3, Tier 4 towns where government employees are 50-60 per cent of the middle class, it is very likely that real estate markets will take off again," Mr Mishra said.

Once the Pay Commission submits its recommendations in October, it will take 3-6 months for the Centre and the states to announce its implementation, Credit Suisse said.

Gujarat and Madhya Pradesh have already indicated that they are going to implement the 7th Pay Commission recommendations from January 1, 2016, he said.

As clarity emerges on the 7th Pay Commission, consumption will see an uptick and that could act as a stimulus to the economy, the brokerage said.

However, Mr Mishra struck a note of caution. "Clearly if you see a third or 35 per cent of your middle class getting a 40 per cent or 30 per cent jump in compensation in one shot, the fears of inflation will rise." Expectations of rate cuts can get pushed out and some possible fiscal pressures can emerge, he warned.
SOURCE - NDTV PROFIT

Jul 28, 2015

EMPLOYEE NEWS CENTER: Don't miss these deductions while filing returns

EMPLOYEE NEWS CENTER: Don't miss these deductions while filing returns: Here are a few little known deductions, from specified illnesses to donations, that taxpayers tend to miss out on Most taxpayers are fam...

पूर्व प्रेसिडेंट कलाम का निधन, आज रामेश्वरम में होगा अंतिम संस्कार

शिलॉन्ग. दिल का दौरा पड़ने से पूर्व राष्ट्रपति डॉ. एपीजे अब्दुल कलाम का सोमवार शाम निधन हो गया। निधन से पहले 83 साल के डॉ. कलाम इंडियन इंस्टीट्यूट ऑफ मैनेजमेंट, शिलॉन्ग में लेक्चर दे रहे थे। उसी दौरान उन्हें दिल का दौरा पड़ा और वे बेहोश हो गए। उन्हें शिलॉन्ग के बेथनी अस्पताल में भर्ती कराया गया। लेकिन शाम 7.45 बजे अस्पताल ने उनके निधन की घोषणा की। अस्पताल के डायरेक्टर डॉ. जॉन ने इस बात की पुष्टि की है। जॉन ने बताया कि 7 बजे उन्हें अस्पताल के आईसीयू में भर्ती कराया गया था। कलाम के निधन पर 7 दिन के राष्ट्रीय शोक की घोषणा की गई है। (डॉ. कलाम के 11 सिद्धान्त, जिससे सीखा पूरे देश ने)
रामेश्वरम में होगा अंतिम संस्कार
डॉ. कलाम का पार्थिव शव मंगलवार सुबह दिल्ली लाया जाएगा। जहां लोग उनके अंतिम दर्शन कर सकेंगे। इसके बाद उनके गृह नगर रामेश्वरम उनका अंतिम संस्कार किया जाएगा।(वैज्ञानिक बनने से पहले टूटा था एयरफोर्स में जाने का डॉ. कलाम का सपना)
पृथ्वी पर लेक्चर देने गए थे शिलॉन्ग
IIM, शिलॉन्ग में डॉ. कलाम लिवेबल प्लैनेट अर्थ सब्जेक्ट पर लेक्चर दे रहे थे। इस बारे में उन्होंने ट्वीट भी किया था, जो उनका आखिरी ट्वीट साबित हुआ। 15 अक्टूबर, 1931 को तमिलनाडु के रामेश्वरम में जन्मे कलाम ने 2002 में देश के 11 वें राष्ट्रपति के रूप में शपथ ली थी। वे मिसाइलमैन के रूप में भी मशहूर रहे।(देखिए, डॉ. कलाम के RARE PHOTOS)
‏डॉ. कलाम का आखिरी TWEET
@APJAbdulKalam 
Going to Shillong.. to take course on Livable Planet earth at iim.
With @srijanpalsingh and Sharma.
26 जुलाई को कारगिल विजय दिवस पर शहीदों को किया था याद
@APJAbdulKalam 
Today is anniversary of operation Vijay ... on this day my respect to all the soldiers who served the nation in such difficult times.
कौन थे कलाम
- 15 अक्टूबर 1931 को तमिलनाडु के रामेश्वर में जन्मे डॉ. कलाम लम्बे समय तक डीआरडीओ से जुड़े रहे।
- देश के पहले स्वदेशी उपग्रह पीएसएलवी-3 के विकास में अहम योगदान दिया था।
- पृथ्वी और अग्नि जैसी मिसाइलें बनाने में बड़ा रोल।
- 1998 के पोकरण परमाणु परीक्षण को लीड किया।
- 1997 में देश के सबसे बड़े नागरिक सम्मान भारत रत्न से नवाजे गए।
- पूर्व प्रधानमंत्री अटल बिहारी वाजपेयी की सरकार में वैज्ञानिक सलाहकार रहे।
- सोशल मीडिया पर सक्रिय थे।
- खाली समय में संगीत सुनने का शौक था।
- बचपन में पढ़ाई का खर्च निकालने के लिए अखबार तक बेचा।
- ताउम्र अविवाहित रहे
source - Bhasker

Jul 26, 2015

7th Pay Commission - Dearness allowance with effect from July will make report more effectiv

seven dear july

RAIL NEWS CENTER: KOTA DRM KAND - Railway has ordered vigilance enqu...

RAIL NEWS CENTER: KOTA DRM KAND - Railway has ordered vigilance enqu...

7th Pay Commission  to recommend the Compensatory City allowance again

Sources said that the 7th CPC may recommend the Compensatory City allowance in its report for Central Govt employees. Upto 5th Pay Commisson, CCA has been granted to all CG Employees and we all know that the 6th CPC has abolished. The NC JCM Staff Side strongly suggested in its memorandum to introduce again the CCA to submitted to 7th Pay Commission earlier. The unconfirmed sources said, the CCA will come with two criteria as granting in the 5th CPC.
The Compensatory City allowance has been granted to Central Government employees since the First Central Pay Commission. This allowance was sanctioned to compensate for the high cost of living in bigger cities classified as such for grant of house rent allowance. Upto 3rd CPC it used to

सातवें वेतन आयोग से होने वाली वेतन वृद्धि का कैसे करें सदुपयोग

money planning

Regularisation of Daily Wage Contract Employees in Group D Posts of Central Government – Staff Side JCM writes to 7th Pay Commission

Shiva Gopal Mishra   Ph.:23382286
Secretary                                                                                        
7 National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001

No.NC/JCM/7th CPC/2015                                               Dated: July 6, 2015
The Secretary,
7th Central Pay Commission,
Chatrapathi Shivaji Bhawan,
Qutup Institutional Area,
New Delhi
Dear Madam,
Sub: Restoration of the erstwhile Group-D posts and regularization of the services of Contract/ Casual Employees
Introduction
During the course of oral evidence of the Staff Side of the National Council(JCM), with the 7th CPC, while discussing on Chapter 17, para No.17.1, 17.4.2 to 17.5.5 of the memorandum submitted by the Staff Side of the National Council(JCM), the Staff Side stated that a large number of contract/casual, contingent and daily rated workers are deployed in various Central Govt. Establishments including Railways, Defence, postal, Income Tax and Accounts & Audit etc. especially in the jobs performed by the erstwhile Group-D Employees such as Chowkidar, Safaiwalas, Peons, Mali, Washerman etc. The Chairman of the 7th CPC after listening to the views put forth by the Staff Side in this regard has desired that the Staff Side may give their views in writing for restoration of the erstwhile Group-D posts in Central Govt. Establishments. Accordingly the following note is submitted for the favourable consideration of the 7th CPC.
Background
Till the beginning of the 1980’s the nature of duties like sweeping, gardening, Watch Ward, Peon, Orderly, Messenger, Duftry etc., were performed by permanent Group-D Employees. However, after imposition of ban on recruitment from 1984 onwards, many Government Department, as mentioned above, stopped recruitment in the above mentioned posts and have started outsourcing all these jobs, resulting in large scale scam and corruption and also exploitation of labour. It is reliably learnt that more than 35% contract/casual workers are employed in all the Central Govt. Departments. The 6th CPC after considering the fact that the above mentioned Group- D posts also require certain amount of skill recommended for upgradation of all Group-D posts to Group-C by upgrading the pay scales. Accordingly these employees after suitable training were re-designated as Multi Tasking Staff (MTS). The 6th CPC further recommended that recruitment in the erstwhile Group-D posts will be from amongst Candidates possessing minimum qualification of either 1oth pass or ITI certificates.
Although the pay scales of erstwhile Group D employees were upgraded, the recommendation relating to multi tasking could not be given effect in letter and spirit in many of the Central Govt.Departments due to practical problems and functional difficulties in view of the fact that the job profile of all the erstwhile Group-D categories has not only been distinctly different from each other, but majority of the posts have full time jobs leaving very little scope for carryout multi tasks.
Employment opportunities for School dropouts
Prior to implementation of recommendation of 6th CPC, the educational qualification required for most of the erstwhile Group-D posts with 8th Std. passed or less qualification as the job profile of these posts did not demand high standards of education. The maximum education qualification for the erstwhile Group-D posts was prescribed at 8th Std. passed in keeping with the aims and principles of inclusive growth and economic empowerment of poor and the downtrodden who are unable to afford higher education due to socio economic reasons and conditions. Recently the Skill Development Ministry has taken a decision to impart training for the school dropouts, so as to make them eligible for employment opportunities.
Proposal of Staff Side
In view of the facts mentioned above the Staff Side propose the following for the consideration of the 7th CPC:-
(i) Minimum qualification for all the posts shall be 8th standard pass or less and that persons possessing educational qualification beyond 10th Std. may be debarred from seeking employment in all the above posts.
(ii) All the outsourced workers at present employed in various erstwhile Group-D posts either through contractors or through the system of outsourcing, Casual/daily rated workers may be absorbed against the existing vacancies subject to possessing the educational qualification or by imparting them in-house training. This will go a long way in curbing corruption and also exploitation of the poor contract and casual workers.
We hope that the 7th CPC may consider our proposals in its true perspective.
Yours faithfully,
(Shiva Gopal Mishra)
Secretary(Staff Side)
NC/JCM

Jul 24, 2015

EMPLOYEE NEWS CENTER: मीटिंग में सुहागरात ऐप डाउनलोड करते रहे अधिकारी

EMPLOYEE NEWS CENTER: मीटिंग में सुहागरात ऐप डाउनलोड करते रहे अधिकारी: रामपुर  अधिकारी विकास कार्यों को लेकर कितने गंभीर हैं, इसका अंदाजा इसी बात से लगाया जा सकता है कि प्रमुख सचिव की मीटिंग में एक अधि...

Jul 23, 2015

DEFENCE EMPLOYEE: Status of Implementation of One Rank One Pension -...

DEFENCE EMPLOYEE: Status of Implementation of One Rank One Pension -...: Status of Implementation of OROP The principle of One Rank One Pension for the Armed Forces has been accepted by the Government. The...

7th Pay Commission contemplates to recommend the Compensatory City allowance again


Sources said that the 7th CPC may recommend the Compensatory City allowance in its report for Central Govt employees. Upto 5th Pay Commisson, CCA has been granted to all CG Employees and we all know that the 6th CPC has abolished. The NC JCM Staff Side strongly suggested in its memorandum to introduce again the CCA to submitted to 7th Pay Commission earlier. The unconfirmed sources said, the CCA will come with two criteria as granting in the 5th CPC.

The Compensatory City allowance has been granted to Central Government employees since the First Central Pay Commission. This allowance was sanctioned to compensate for the high cost of living in bigger cities classified as such for grant of house rent allowance. Upto 3rd CPC it used to
be certain percentage of pay for different pay ranges and different classified towns. The 4th and 5th CPC, however, recommended lump sum amounts as CCA. 5th CPC in para 106.10 (Pge 1582) of their report has commented that :

“We also do not support the demand for making CCA a percentage of basic pay because this amounts to admitting a firm and casual relationship between CCA and income.”

When it is admitted that CCA is essentially an allowance given to offset the imperfection in Dearness allowance as a measure of relative expensiveness of classified Cities, it really becomes an additional DA. When the DA is at a percentage of Pay, how can CCA not be fixed as a percentage of pay. The basis on which the lumpsum amount of CCA was recommended by the 4th and 5th CPCs had also not been disclosed and therefore, it appears to be an arbitrary decision.

The 6th CPC on the other hand recognised that the only two factors viz. accommodation and transportation contribute to high cost of living in classified towns. They, recommended the revised HRA and Transport allowance to adequately compensate for relative expensiveness of the classified cities. In view of that contention, they stated that the CCA stands subsumed in Transport allowance. We are unable to agree with the idea of subsuming CCA in Transport allowance as recommended by the 6th CPC on the consideration that the relative expensiveness in bigger cities is only on account of problems of accommodation and transportation. There are various other factors due to which the expensiveness of a particular city either increases or decreases. CCA was a component in determination of overtime allowance prior to the implementation of the 6th CPC recommendations. By allowing this to be subsumed in the transport allowance, it became difficult to factor the CCA component in the computation of over time allowance.

For these reasons, we propose the Commission to recommend the following rates of City Compensatory allowance...


Source: www.7thpaycommissionnews.in

Jul 22, 2015

Report of seventh pay commission is to be ready for implementation soon

delay in 7th cpc

7th Pay Commission Rumours – Discarding Grade Pay system – Will it be beneficial ? - Analysis by GConnect

Fitment benefit in the form of Grade Pay provided by 6th CPC was computed based on highest pre-revised pay in each of the pre-revised Pay Scale – Fitment benefit advocated by previous pay commisions were reckoned with Pre-revised basic Pay drawn on the effective date of CPC

While Central Government Employees keep their fingers crossed after 7th Pay Commission finished all the interaction sessions with the Employees Federations and started finalising its report to be submitted to Govt, many surmises and speculations have already started filling the air through Internet and through word of mouth about possible 7th CPC pay fixation methods.

Some of those 7th Pay Commission rumours are as follows
1.There will be no running Pay band and Grade Pay System

2.The Minimum Pay will be Rs. 21000The uniform multiplication factor for arriving revised pay will be 2.86.

3.The Criteria for retirement age will be either completion of 33 Years of service or at the age of 60 Years whichever is earlier.

Interestingly, these rumours are spread out this time carry the tags as “inside information provided by Employees federations which participated in the 7th Pay Commission meetings”. The very character of a rumour is, it may be true or false. God only knows.

Among these, the unconfirmed news that 7th Pay Commission is to discard Pay Band – Grade Pay System may be affecting the Pay Structure of Central Government Employees very much if it is true.

In fact this is an off-shoot of proposal moot out by Confederation of Central Government Employees and Workers in its reply to 7th Pay Commission Questionnaire

In this background, we made an analysis as to whether discarding of Grade Pay System would be beneficial to Central Government Employees.

As per the proposal of Confederation, the Pay Band and Grade Pay system evolved by the 6th CPC brought about innumerable anomalies and the same has to be replaced by the Pay scale structure, which was in vogue prior to the implementation of the 6th CPC.

What was Pay Scale Structure prior to 6th CPC ?  How fixation pay was made in that pay scale ?

Obviously, Pay Scale Structure contemplated by Confederation is 5th Pay Commission Pay Structure which is the Pay Structure prior to 6th CPC pay Structure.

Now, let us have a look at the 5th CPC Pay Structure and how pre-revised 4th CPC Pay was revised and fit into the same.

5th Pay Commission Pay fixation Method :

As per Central Civil Services (Revised Pay) Rules 1997 which was notified by Ministry of Finance for implementation of 5th Pay Commission Report, Revised Pay Scales against 4th CPC pay scales are as follows

4th CPC Pay scales5th CPC pay scales750-12-870-14-940S-12550-55-2660-60-3200775-12-871-12-1025S-22610-60-3150-65-3540775-12871-14-955-15-1030-20-1150S-2A2610-60-2910-65-3300-70-4000800-15-1010-20-1150S-32650-65-3300-70-4000825-15-900-20-1200S-42750-70-3800-75-4400950-20-1150-25-1400/950-20-1150-25-1500/1150-25-1500S-53050-75-3950-80-4590975-25-1150-30-1540/975-25-1150-30-1660S-63200-85-49001200-30-1440-30-1800/1200-30-1560-40-2040/1320-30-1560-40-2040S-74000-100-60001350-30-1440-40-1800-50-2200/1400-40-1800-50-2300S-84500-125-70001400-40-1600-50-2300-60-2600/1600-50-2300-60-2660S-95000-150-80001640-60-2600-75-2900S-105500-175-90002000-60-2120S-116500-200-69002000-60-2300-75-3200/2000-60-2300-75-3200-3500S-126500-200-105002375-75-3200-100-3500 / 2375-75-3200-100-3500-125-3750S-137450-225-115002500-4000S-147500-250-120002200-75-2800-100-4000/2300-100-2800S-158000-275-135002200-75-2800-100-4000NEW SCALE8000-275-13500(Group A Entry)2630/- FIXEDS-1690002630-75-2780S-179000-275-95503150-100-3350S-1810325-325-109753000-125-3625/3000-100-3500-125-4500/ 3000-100-3500-125-5000S-1910000-325-152003200-100-3700-125-4700S-2010650-325-158503700-150-4450/3700-125-4700-150-5000S-2112000-375-165003950-125-4700-150-5000S-2212750-375-165003700-125-4950-150-5700S-2312000-375-180004100-125-4850-150-5300/4500-150-5700S-2414300-400-183004800-150-5700S-2515100-400-183005100-150-5700/5100-150-6150/5100-150-5700

-200-6300

S-2616400-450-200005100-150-6300-200-6700S-2716400-450-209004500-150-5700-200-7300S-2814300-450-224005900-200-6700/5900-200-7300S-2918400-500-224007300-100-7600S-3022400-525-245007300-200-7500-250-8000S-3122400-600-260007600/-FIXED /7600-100-8000S-3224050-650-260008000/- FIXEDS-3326000(FIXED)9000/- FIXEDS-3430000(FIXED)

Further, 5th CPC revised pay of Central Government Employees was worked out by adding DA as on 01.01.1996, two installments of Interim Relief (IR-1 and IR-2) and 40% of pre-revised basic pay with Pre-Revised Basic pay drawn as on 01.01.1996. Then resultant revised basic pay was stepped up to nearest incremented pay in the revised 5th CPC pay scale against the existing 4th CPC pay scale in which the pay was drawn. The following illustration would provide clear cut idea about 5th Pay Commission Pay fixation method

Illustration for 5th Pay Commission Pay fixation

Existing 4th CPC pay scaleRs. 1640-60-2600-75-2900Revised 5th CPC pay scaleRs. 5500-175-9000Pre-Revised Basic PayRs. 2360D.A as on 01.01.1996 @ 148%Rs. 3493IR-1Rs. 100IR-2Rs. 236Add 40% of pre-revised B.PRs. 944TotalRs. 7133Nearest incremented pay in revised 5th CPC pay scale —-ARs, 7250If one increment is ensured in the revised pay scale for every three increments in the pre-revised pay scale, the revised basic will be —- BRs. 62505th CPC revised Basic Pay as on 01.01.1996 (A or B whichever is higher)Rs. 7250

From the above it could be found that fitment benefit of 40% is calculated using the pre-revised basic pay received by an employee as on 01.01.1997. On the contrary, in the case of fitment benefit allowed by 6th Pay Commission in the form of Grade Pay, it has been calculated at 40% of highest Pay in each of 5th CPC Pre-Revised pay scale.

6th Pay Commission Pay Band and Grade Pay hierarchy
5th CPC Pay Scales6th CPC Pay Band and Grade PayGRADESCALEPay BandGrade PayS-12550-55-2660-60-3200-1S4440-74401300S-22610-60-3150-65-3540-1S4440-74401400S-2A2610-60-2910-65-3300-70-4000-1S4440-74401600S-32650-65-3300-70-4000-1S4440-74401650S-42750-70-3800-75-4400PB-15200-202001800S-53050-75-3950-80-4590PB-15200-202001900S-63200-85-4900PB-15200-202002000S-74000-100-6000PB-15200-202002400S-84500-125-7000PB-15200-202002800S-95000-150-8000PB-29300-348004200S-105500-175-9000PB-29300-348004200S-116500-200-6900PB-29300-348004200S-126500-200-10500PB-29300-348004200S-137450-225-11500PB-29300-348004600S-147500-250-12000PB-29300-348004800S-158000-275-13500PB-29300-348005400NEW SCALE8000-275-13500(Group A Entry)PB-315600-391005400S-169000PB-315600-391005400S-179000-275-9550PB-315600-391005400S-1810325-325-10975PB-315600-391006600S-1910000-325-15200PB-315600-391006600S-2010650-325-15850PB-315600-391006600S-2112000-375-16500PB-315600-391007600S-2212750-375-16500PB-315600-391007600S-2312000-375-18000PB-315600-391007600S-2414300-400-18300PB-437400-670008700S-2515100-400-18300PB-437400-670008700S-2616400-450-20000PB-437400-670008900S-2716400-450-20900PB-437400-670008900S-2814300-450-22400PB-437400-6700010000S-2918400-500-22400PB-437400-6700010000S-3022400-525-24500PB-437400-6700012000S-3122400-600-26000HAG+SCALE75500-80000NILS-3224050-650-26000HAG+SCALE75500-80000NILS-3326000(FIXED)APEX SCALE80000(FIXED)NILS-3430000(FIXED)CAB. SEC.90000(FIXED)NIL

We are of the view that if the 7th CPC fitment benefit is calculated on the basis of existing pre-revised pay as in the case of 5th CPC then revised 7th CPC pay would be lesser than the revised 7th CPC Pay calculated by adopting the methods 6th CPC, in which grade pay (fitment benefit) has been arrived at on the basis of highest pay in the pre-revised pay Scale.

At the same time it may not be viable to arrive 7th CPC fitment benefit on the basis of highest Pay in each of Pay Band as 6th CPC Pay Band Structure has been designed in such a way that each of the Pay band accommodates many 5th CPC Pre-Revised Pay Scales

However, even after discarding Grade pay System, if the fitment benefit for 7th Pay Commission Pay revision is provided on the basis of highest pay in the fitment table provided vide O.M 1/1/2008-IC dated 30.08.2008 for the each of the 5th CPC Pre-Revised Pay Scale, then it would be Pay wise beneficial to Central Governement Employees.

GConnect invites valuable opinion of readers in the form of comments to this article so that pay fixation method beneficial to CG Employees community can be highlighted. 

Source - gconnect

Seventh Pay Commission may Submit Report By October 31, 2015

New Delhi: The eyes of the central government employees will be firmly glued on the forthcoming seventh central pay commission reports which is likely to be be submitted by October 31 for implementation from April 2016.

The pay panel is likely to finalise and submit its report on salary and allowance hike by October 31, sources said. The members and officials of the panel had made several field tours and collected valuable suggestions, which are all going to be trashed as the Commission winds up its office within three month.

After getting recommendations, the central government may announce to accept it in the budget 2015-16 to implement it from April 2016.

It is expected that seventh pay panel to suggest hiking the tripled salaries of central government employees.

The salaries of central government employees were roughly tripled with retrospective effect from 1996 and tripled once again with retrospective effect from 2006 by the fifth pay panel and sixth pay panel respectively. This shows the salaries of central government employees have tripled every decade.

According to media report says that investors are expecting car bazar to get a boost from the seventh central pay commission’s recommendations from mid-next year on account of getting arrears of rising salaries of central government employees.

The last Pay Commission report had resulted in car sales rising 18 per cent annually between financial year 2009-10 and financial year 2010-11.

The last pay commission was implemented in August 2008 with retrospective effect from January 2006 which resulted in getting huge salary arrears to central government employees to enable them to purchase car from their arrears on loan basis.

They paid margin amount from arrears and installments from salaries but this pay panel will be implemented from January 2016, hence no such huge arrears will be paid to central government employees this time to pay margin amount for car loan. So car bazar will not get a boost from the seventh central pay commission’s recommendations.

source: http://www.tkbsen.in/

Jul 18, 2015

LATEST NEWS REGARDING 7TH PAY COMMISSION EXPECTED SALARY CALCULATOR-ARTICLE FROM GOVTENEWS

7th Pay Commission Recommendations has begun to emerge!

It doesn’t come as a surprise that even bits and morsels of information about the recommendations, which is being eagerly expected by nearly 50 lakh employees and pensioners, make headlines.”

The recommendations of the 7th Pay Commission have slowly started to make their way to the media in the form of unconfirmed news. The information that was being extensively discussed by all for more than a week now has finally made it to the websites yesterday.

It has now been confirmed that the 7th Pay Commission will submit is report to the Government next month. With the report being given a final shape, certain pieces of information have already started to hit the media. Some of the workable recommendations of the commission are out.

In 2006, a number of such unconfirmed reports surfaced, when the 6th Pay Commission report was being prepared, because the report was not submitted to the government on time. Due to the delay, there was tremendous curiosity to find out what the report contained. This led to a lot of rumors. Since the internet didn’t become that popular in those days, those rumors were hard to believe. Most of them were circulated by word of mouth.

Now, despite the fact that there are plenty of news sources, since it has become possible to trace the point of origin of the information, such rumors have reduced. This time around, the information was given by the leaders of Federations. Yet, one can neither completely accept them as true, nor dismiss them as entirely false.

Since the government and the major employees federations have their own websites, it has become possible for the information to spread to the corners of the world within minutes. Also, retracts and denials too have become equally fast, thus killing the rumours immediately. With a number of other individual websites and blogs too covering the news about Central Government employees, the readers are now able to differentiate between news and rumours.

There is nothing surprising or shocking in the news reports that have now surfaced. A minimum basic pay of Rs.21,000 is an expected one. The recently released Kerala Pay Commission too has recommended the minimum wage at Rs.17,000 (from 01.01.2014 onwards). The National Council has demanded that it be Rs.26,000 per month.

It is a well known fact that the Grade Pay System had been a source of constant irritation. The dual Hierarchy System (Promotional hierarchy and Grade Pay hierarchy) will come to an end. There will not be any more confusion about the promotions that come through MACP.

The Multiplication Factor of 2.86 does sound very low. NC JCM had pressurized the Pay Commission to fix it at 3.7. The 6th Pay Commission had fixed it at 1.86, and also given Grade Pay. Since the DA now stands at 125% (including July 2015 and January 2016), this could end up being substantial.

Information about retirement is unexpected. Unconfirmed reports claim that the 7th Pay Commission is planning to recommend 33 years in service or the age of 60 (whichever comes early) as the criteria for superannuation. Since the recommendations will be implemented from 01.01.2016 onwards, many are likely to get affected.

And also some key messages revolving about the recommendations are…
There will be no running Pay band and Grade Pay System. The Pay scales will be open ended to avoid stagnation in the scales. The CCA will be separated into two components as it was in the 5th Pay Commission. CGEGIS Insurance Coverage and Monthly premium will be increased. Classification of Posts will be Modified and the 7th Pay Commission recommendation will be implemented with effects from 1.1.2016.

Source: govtenews

Implementation of 7th Pay Commission report will boost market, car sales set to increase

Source ,- Govemployee

Jul 17, 2015

University and college teachers to launch agitation -Seventh Pay Commission,

CHANDIGARH: Due to failure of Govt. of India to respond to the long pending demands of University and College teachers, All India Federation of University and College Teachers’ Organisations (AIFUCTO), has given call for cease work on August 7, 2015 along with hunger strike at Jantar Mantar, New Delhi.
Dr. Jagwant Singh, General Secretary, Punjab Federation of University and College Teachers’ Organisations (PFUCTO) called upon University and College teachers to fully participate the action as they have been doing in the past. He said that a meeting of the Federation will be held soon to chalk out the detailed programme.
Dr. Jagwant Singh said that it is unfortunate that Ministry of Human Resource Development, Govt. of India has so far has not even appointed a pay review committee for university and college teachers under the Seventh Pay Commission, while the Seventh Pay Commission has already concluded its consultation with the organizations of Central Govt. employees. He pointed out that Union Finance Minister Arun Jaitley in his Budget speech has stated that scales of seventh pay commission are likely to be implemented in the financial year 2015-16; therefore, teachers are concerned about the new pay scales. Other demands of teachers are approval of 3rd Amendment of UGC Regulations of 2010 and Ph.D Regulations of 2009, scrapping of API, roll back of Choice-Based Credit System and consultation with teachers’ organizations on their demands and policy issues of education.

Jul 16, 2015

Probable recommendations of 7th Pay Commission are out

Probable recommendations of 7th Pay Commission are out

 7th pay Commission has mentioned that  work of compilation and finalization of the report is underway and it would not meet any stake holder for further discussions, it is the time for expecting the date on which the report will be submitted after it is finalized. The stipulated time for submitting the report is 18 months from the date of notification issued. In a resolution dated 28th February, 2014, Government of India has appointed the Seventh Central Pay Commission comprising Justice Shri Ashok Kumar Mathur as Chairman, Shri Vivek Rae as full time Member, Dr. Ratin Roy as part time Member and Smt. Meena Agarwal as Secretary

           The 7th pay commission has been given 18 months’ time from date of its constitution to make its recommendation. Hence the tentative date for submission of Report will be 30th August 2015.

         The sources close to the 7th Pay Commission, on the condition of anonymity told that the 7th pay Commission Report is almost finalized and the Report is expected to be submitted on or before 14th August 2015. The Leaders representing one of the railway federations in the staff side also confirmed this news.

 According to the Sources the important Points of the Pay Commission’s Recommendations are ..

1. There will be no running Pay band and Grade Pay System 
2. The uniform multiplication factor for arriving revised pay will be 2.86
3. The Pay scales will be open ended to avoid stagnation in the scales
4. The Minimum Pay will be Rs. 21000
5. The CCA will be separated into two components as it was in the fifth CPC
6. Percentage of HRA will remain same.
7. The Criteria for retirement age will be either completion of 33 Years of service or at the age of      60  Years whichever is earlier.
8. CGEGIS  Insurance Coverage and Monthly premium  will be increased
9. Classification of Posts will be Modified 
10. The 7th Pay Commission recommendation will be implemented with effects from 1.1.2016.

         Further ,the sources told that the Committee of Secretaries will be appointed to study the report and analyze the financial implications upon implementation of 7th pay commission recommendation.  An ally of NCJCM Staff Side told that the Staff Side also will be invited by the third week of September 2015 by this Committee before giving its final nod for approval for this Recommendation.

          It appears that after  three decades the Pay Commission recommendations will come into force on the first day of its due date. Retrospective effect will not be required for implementation of 7th Pay Commission recommendation, since the notification for implementation of 7th Pay Commission recommendations might be issued on or before 1.1.2016.  So there will be no financial burden for government on spending for payment of Arrears to this effect.

        It is indeed very good news for entire central and some State government employees community. There are expectations on its peak over 7th pay commission recommendation. Whether the 7th Pay Commission’s recommendation fulfill their expectations or not?.  Let’s hope, by the time of next month, everything that is concealed will be brought to light and made known to all.

Source - Govemployee

Jul 15, 2015

Major issues of the Central Government Employees regarding 7th Pay Commission

Major issues of the Central Government Employees regarding 7th Pay Commission

Five major issues of the Central Government employees which are projected for a serving employee to the 7th CPC.

1) Inadequate pay compared to talent.
2) Lack of promotions and better increment rate.
3) Equal pay for equal work.
4) Non-filling up of vacant posts and increased work load.
5) Allowances to be paid as per market rate.

1) Inadequate pay compared to talent:
The person joining a Government Service is not just for the employment is for a whole career, if a person joins a Government Service he will quit/ retire from the job only after putting 30 years service or more. In case of the person joining a private company he will jump from one company to another at least five times in thirty years.

The talented persons from all over the country are moving to IT, BT and private sectors, rather than Central Government sector. Because of the lower salary / pay structure in Central Government sector compared to IT and BT sectors and complex nature of rules and regulations in Central Government sector and also the skill and merit of the worker/ employee is not into account in Central Government sector.

Today, the weakest link in respect of any government policy is at the delivery stage. This phenomenon is not endemic to India. Internationally also, there is an increasing emphasis on strengthening the delivery lines and decentralization with greater role being assigned at delivery points, which actually determines the benefit that the common citizen is going to derive out of any policy initiative of the government.

More the talented persons are there in Government services, more the delivery of the government schemes will be there, thus the Government machinery will be more effective and common man will benefit a lot.

Main consideration in the private and public sector being ‘profit’, and in Central Government it is “service” even through Railways, Income Tax & Central Excise are revenue earning departments, hence an equal comparison with the Government is not going to be ever possible. Performance for the Government is usually not measured in terms of profit, but in terms of achieving societal goals.

The time scale gap between one posts to another should be uniform rate from starting to end, starting from Rs 26,000 to Rs 2, 60,000.

The minimum wage should be calculated using Dr Aykroyd formula and following 15th ILC norms and four units should be taken into account not three units as followed by the 6th CPC.

The pay should fixed taking in following factors.
a) The educational qualifications.
b) The level of responsibility.
c) The skill of the work.

The earlier pay commissions were only taking into account only educational qualifications into account.

Only around 8 to 9 % of the total Govt revenue collection is spent on wages of Central Government employees, compared to 20% to 25% of the revenue spent on wages in private sector.

The cost of living (prices of essential items and other items) has gone by over 250% during last 10 years, compared to 113% DA. The prices are continuously rising.

The Government is a model employer, hence the wages should be provided with the needs and to attract the talented and skilled persons.

2) Lack of promotions and better increment rate.
Today there are persons who have not even got two promotions in his entire career, The MACP scheme is not that much effective, lack of promotions in Central Government sector compared to IT and BT sectors.

One should get five promotions in promotional hierarchy during his service to motivate him to work more. As the Government employee put more and more service, he will be more trained to perform his duties in a better befitting manner. Thus the Government is more beneficial as good quality of work can be expected of him.

The family responsibility will increase with age. There should be adequate financial protection for him, the better rate of increment should motivate him to work more from the present 3% to 5%. On promotion one should get a minimum salary increase of Rs 3000/- per month as he will perform higher duties.

3) Equal Pay for Equal work.

For the same post which include similar duties and responsibility. There are different pay scales/ Grade Pay existing for same nature of duties and similar recruit qualifications. This anomaly should be rectified.

Grant of Grade Pay Rs.4800 to all Supervisors cadre. The gazetted Group “B” post should start from Rs 5400/- GP.

4) Non-filling up of vacant posts and increased work load
In 1990 the Population of the country is 85 crores and the Central Government Employees strength is 40 lakhs in the year 2014 population of the country is 125 crores, whereas the Central Government Employees strength is just 31 lakhs.

Non-filling up of vacant posts has resulted in increased work load on the existing employees. The strength of Central government employees should increase considerably.

5) Allowances to be paid as per market rate:
The house rent allowance should be from Rs 7000/- per month to Rs 55,000/- per month. All allowances such as Tour DA, OTA, Night Duty, CEA (tuition fees) , Cashier Allowances, etc should be increased by three times.

The all allowances should also be paid net of taxes which has been examined by 5th CPC in para no 167.

The staff side (JCM) has represented well the above important issues of the Central Government Employees before the 7th CPC, we sincerely hope the 7th CPC will address and resolve the above issues.

Let us wait patiently for the 7th CPC to submit its report and then we can deliberate on the report and do the needful action.

source-karnatakacoc.blogspot