Thursday, February 20, 2014

Cabinet approved terms of reference for 7th CPC, including merger of 50 per cent DA with basic pay

Cabinet approved terms of reference for 7th CPC, including merger of 50 per cent DA with basic pay

Cabinet okays setting up of equal opportunity commission, coal regulator.
New Delhi, Feb 20: Ahead of general election, the Centre today took key decisions to woo minorities and Government employees.

For minorities, the Cabinet has decided to form equal opportunity commission as suggested by Sachhar Committee. This commission will suggest ways to ensure equal opportunities in jobs, education and even finding house on rent for minorities. The commission is expected to be constituted soon.

Terms of reference for 7th pay commission

In order to benefit over 50 lakh employees and over 30 lakh pensioners, the Cabinet also approved terms of reference for seventh pay commission. This includes merging dearness allowance above 50 per cent with basic pay. Currently DA is around 90 per cent of basic pay and another hike of 10 per cent is expected soon. DA is calculated on the basis of change in retail inflation.

Non-statutory coal regulator
In another significant decision, the Cabinet gave its nod for setting up non-statutory coal regulator. This mechanism is expected to resolve the disputes between coal and power companies.
Meanwhile, the Cabinet Committee on Economic Affairs approved payment of salary and other dues to HMT. This will entail an expenditure of over Rs. 77 crore.

Nod for Rs. 8,000 cr foreign investment
The CCEA also approved foreign investment of approximately Rs. 8,000 crore. It gave its nod to the proposal for acquisition of 100 per cent equity stake in Prizm Payment Services Pvt Ltd by Hitachi Consulting Software Services India Pvt Ltd and Hitachi Ltd, Japan. The approval would result in foreign investment of approximately Rs. 1,540 crore in the country.

Similarly, the committee approved the proposal of GlaxoSmithKline Pte Ltd, Singapore for the acquisition of 24.33 per cent of shares in the existing Indian subsidiary company of the GSK Group in India by way of a voluntary open offer under SEBI (SAST) Regulations in the pharmaceutical sector. This would result in foreign investment of approximately Rs. 6,390 crore in the country.

Source: www.thehindubusinessline.com
[http://www.thehindubusinessline.com/economy/policy/cabinet-okays-setting-up-of-equal-opportunity-commission-coal-regulator/article5708924.ece]

SC/ST Govt. Servants can write to Commissioner for SC and ST direct

SC/ST Govt. Servants can write to Commissioner for SC and ST direct

 Ministry of Home Affairs O.M. No. 17016/1/76-SCT(1)
dated 8th April, 1976 to all Ministries etc,

Subject:- Question whether the Commissioner for Scheduled Castes and Scheduled Tribes can call for original records and files in specific cases where complaints have been made to him and whether Scheduled Caste and Scheduled Tribe servants can write to him direct

The undersigned is directed to refer to this Ministry Office Memorandum No. 8/2/69-SCT(1), dated 1-10-1974 on the above subject addressed to all Ministries/Departments of the Government of India and to say that this Ministry had been receiving requests for clarification whether the Scheduled Caste and Scheduled Tribe Government employees may be permitted to write to the Commissioner for Scheduled Castes and Scheduled Tribes direct on matters relating to appointments against the reserved quota without seeking prior permission from the Departments concerned. It is clarified for general information that in such cases it is not necessary for the Scheduled Caste and Scheduled Tribe Government employees to seek prior permission of the concerned administrative Ministries/Departments of the Government of India for sending their representations to the Commissioner for Scheduled Castes and Scheduled Tribes direct.

Source: www.persmin.nic.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02adm/17016_1_76-SCT-I-08041976.pdf]

Central Government News: Inclusion of DA Merger and Interim Relief in 7th CPC ToR - Cabinet likely to approve 7th CPC ToR

Central Government News: Inclusion of DA Merger and Interim Relief in 7th CPC ToR - Cabinet likely to approve 7th CPC ToR

Inclusion of DA Merger and Interim Relief in 7th CPC Terms of Reference - Union Cabinet likely to approve the 7th CPC Terms of Refernce in the next meeting, media sources said.

"To woo central government employees ahead of the general elections, the United Progressive Alliance (UPA) government is expected to ask the Seventh Pay Commission to consider merging 50 per cent dearness allowance (DA) with basic pay of employees.

This will form part of the terms of reference (ToR) for the Commission, to be considered by the Cabinet this week.

According to officials, the Pay Commission’s ToR categorically states a proposal in this regard should be actively considered.

The increases will be even more appealing as the Centre is expected to increase the DA by 10 per cent to 100 per cent by the end of February. Usually, the DA is merged with basic pay when the former goes beyond 50 per cent. It is 90 per cent now, but has not been merged so far.

Assuming an employee gets Rs 100 as basic pay and Rs 100 as DA at present, the basic will rise to Rs 150, even if 50 per cent allowance is merged. . A higher basic pay will also impact the house rent allowance (HRA) of employees as it is calculated at 30 per cent of the basic pay for central government employees.

DA is linked to the consumer price index (industrial workers). The government uses CPI-IW data of the past 12 months to arrive at a quantum for calculating any DA hike. The allowance will be announced from January. As such, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter. The average inflation during this period had stood at 10.66 per cent.

Earlier this month, the government had constituted the Pay Commission under the chairmanship of former Supreme Court Judge Ashok Kumar Mathur.

The other members of the panel are Petroleum Secretary Vivek Rae (full-time member), National Institute of Public Finance and Policy Director Rathin Roy (part-time member) and Officer on Special Duty in the Expenditure Department Meena Agarwal (Secretary).

The Commission’s recommendations would be implemented from January 1, 2016, officials said. However, it may recommend interim relief as well, they added.

The Commission’s recommendations will directly benefit almost five million employees and three million pensioners. Employees of state governments, which will adopt the recommendations of the 7th Pay Commission will also benefit.

Some officials said the Cabinet is also expected to consider another proposal to modify the Prime Minister’s 15-point programme for minorities, which will enable allocation of at least 15 per cent of the total funds for welfare of minorities in major programmes such as National Rural Health Mission, Rashtriya Mahila Shiksha Abhiyan, Employment and Skill Development".

Source: www.business-standard.com
http://www.business-standard.com/article/economy-policy/centre-plans-big-bonanza-for-central-govt-employees-114021901256_1.html]

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