Friday, March 7, 2014

Correlation of Piece Work Rates after implementation of 6th CPC pay scales

Correlation of Piece Work Rates after implementation of 6th CPC pay scales

Government of India
Ministry of Defence
Department of Defence Production
New Delhi, dated 4th March, 2014
The Secretary,
Ordnance Factory Board,
10A, S.K.Bose Road,
Kolkatta – 700001

Sub: Correlation of Piece Work Rates after implementation of 6th CPC pay scales.

I am directed to state that the question of Correlation of piece work rates in the Ordnance Factories Organisation to the revised pay scales, on the basis of recommendations of the 6th Central Pay Commission has been under consideration of the Government for some time and the President has been pleased to decided on the implementation of the new scheme of correlation of piece work rates as indicated below :-

    i) Piece work rates would be correlated to the minimum of the pay band-I + GP Rs.1900 i.e. Rs.5200 + Rs.1900 = Rs.7100/- for all category/grades of workers deployed on piece work system.
    ii) The difference between the actual basic pay of a worker and Rs.7100/- shall be paid to him as a separate element as “Incremental Pay”.
    iii) The production warrants will be issued in terms of times without 25% built-in incentive. However, as per existing procedure relevant to preparation of wage rolls for piece workers and labour costing, output hours will be reckoned as standard Man Hours (SMH) plus 25% built in incentive.
    iv) The time estimates in all the existing labour rate forms will be reviewed as per production requirement.
    v) The existing ceiling of 75% on piece work profit will continue.

2. The above orders will take effect from the date of issue of this letter.

3. OFB should made all out efforts to sbsorb the additional cost to the extent possible by periodical revision in material estimate and labour estimate. OFB must scrupulously follow the practice of revision of rates whenever there is change in design, material composition and introduction of latest machines.

4. Operational instructions will be issued by Ordnance Factory Board.

5. This issue with the concurrence of the Defence Finance vide their diary No.97/IF/DP-I dated 4.3.2014.

Yours faithfully,
(Biswajit Sarkar)
Under Secretary to the Govt of India


Terms of Reference of the 7th Central Pay Commission : JCA Writes to DOP&T

Terms of Reference of the 7th Central Pay Commission :  JCA Writes to DOP&T

1st Floor, North Avenue Post Office Building, New Delhi – 110001
T-24, Atul Grove Road, New Delhi - 110001

Ref: JCA/Postal/2014                                                                 Dated – 06.03.2014


The Secretary
Department of Personnel & Training
Ministry of Personnel, Public Grievances & Pensions,
North Block, New Delhi – 110001

Dear Sir,

Sub: -  Terms of Reference of the 7th Central Pay Commission.

We have gone through the Terms of Reference of 7th Central Pay Commission approved and notified by the Government on 28.02.2014. We find that the Terms of Reference finalized by the Government is at variance in many respects to the Draft Terms of Reference the Staff Side had submitted to you on 25.10.2013 after holding in-house discussion on 24.10.2013.

At the conclusion of the meeting held on 24.10.2013, it was agreed that the Government would consider our suggestions in the matter and will convene another meeting with the presence of the Secretary (Expenditure) to iron out the differences, if any, and explore the possibilities of an agreement in the matter.

We regret to inform you that no such meeting was convened and no attempt was made by the Official Side to arrive at an agreed Terms of Reference. We find that the Government has rejected the suggestions of Staff Side for either taking a decision in the matter of Interim Relief, Merger of DA, representation of labour nominee in the Commission itself, inclusion of the Grameen Dak Sewaks within the purview of the 7th CPC, bringing parity in pension between the past and present pensioners, covering the employees appointed on or after 01.01.2004 within the ambit of the Defined Benefit Pension Scheme, date of effect, settlement of the pending items in the National Anomaly Committee etc. or referring those issues to the Commission itself for an Interim Report.

Besides, we are to state that the existing Productivity Linked Bonus (PLB) Scheme, being a bilateral agreement, cannot be subjected to scrutiny and examination by the 7th CPC.

We, therefore request you to kindly convene a meeting of the Standing Committee of National Council (JCM) to discuss the issue, so as to make amendments to the Terms of Reference finalized by the Government arbitrarily.
Yours faithfully,

(D. Theagarajan)                                                                           (M. Krishnan)
Secretary General, FNPO &                                                        Secretary General, NFPE & Member, National Council - JCM                                                               Member, National Council - JCM
Mobile: 09968349422                                                                 Mobile: 09447068125 

E-mail:      E-mail:

MACP – DoP Order to implement Court judgement on Stepping up of pay

MACP – DoP Order to implement Court judgement on Stepping up of pay

Government of India,
Ministry of Communications & IT,
Department of Posts,
Postal Accounts Wing,
Dak Bhavan, New Delhi. 110 001

Dated: 4 March, 2014.
All General Manager (Postal Accounts Finance),
All Directors of Account (Postal).

Sub: Implementation of judgment of Hon'ble Central Administrative Tribunal, Principal Bench, in OA No.2124/2011 upheld by Hon'ble High Court, filed by AIPAEA.


I am directed to refer on the above subject and to state as under;-

  1.     That the orders dated 1.2.2013 of Hon'ble Central Administrative Tribunal, Principal Bench, New Delhi in OA No.2124/2011 has already been complied by conveying the approval of competent authority vide this office letter No.33(3)/10/PA-Admn.I/128 to 153 dated 14th February 2014 for extending its benefit to the applicants/individuals working under the jurisdiction of your Postal Accounts Offices.
  2.     That further exercise regarding extending the benefit of stepping up of pay to the applicants are to be completed by the concerned Postal Accounts Offices, as the applicants covering under these orders for grant of benefit of stepping up of pay are posted in circle Postal Accounts Offices and circle Postal Accounts offices are the sole custodian of their service records etc., by issuing further orders after obtaining a certificate that the same are subject to outcome of the SLP filed in the APEX Court by the Department.
  3.     That the Horrible CAT while hearing CP 392/2013, on 25.2.2014, has directed the respondent to put before the Hon'ble CAT the orders of the individuals benefiting out of CAT's orders of stepping up of pay.
  4.     That since the action in this regard is to be taken by the PAOs, you are therefore, requested to complete the whole exercise regarding stepping up of pay in respect of officials covered under this judgment on or before 28th March 2014 and forward the orders issued in compliance to the Hon'ble CAT's judgment in respect of all such cases where the stepping up of pay has been done to this office by 28th March 2014 so that the compliance report may be submitted to the Hon'ble CAT to avoid further contempt in the matter.
  5.     This may be treated as urgent.

Yours faithfully,
Director (Bgt& Admn.)


No withdrawal of CGHS Cashless Scheme - Health Ministry

No withdrawal of CGHS Cashless Scheme - Health Ministry

There have been reports in the Media that private hospitals on the panel of CGHS are denying credit facilities to the eligible CGHS beneficiaries for delay in settlement of hospitals bills. Lower package rates and inadmissible deductions etc. have also been reported to be the other reasons for withdrawal of agreed cashless /credit facilities.

In this regard, the CGHS beneficiaries are advised not to be guided by such misleading information. Delay in payments in the last quarter of the financial year due to budgetary constraints is not a new phenomenon and the hospitals are aware of it. Ministry of Health and Family Welfare has taken special steps and the pendency is likely to be cleared within a week.

CGHS has already invited bids for revision of package rates through a transparent tender process. The last date for submission of bids is 10th March, 2014. Measures have also been taken to streamline the payment related issues in the ensuing empanelment process.

The Ministry of Health and Family Welfare will ensure that the CGHS empanelled private hospitals continue to extend cashless /credit facilities to the eligible CGHS beneficiaries in compliance with the terms and conditions as laid down in the Memorandum of Agreement signed by them with CGHS. As per the information received by the Ministry, most of the private hospitals are continuing to extend the cashless facilities to the CGHS beneficiaries.

Source: PIB News

Can the government servants get 30% Salary hike on account of 50% DA Merger? - An analysis

Can the government servants get 30% Salary hike on account of 50% DA Merger? - An analysis

It is observed that recently Public Medias are interested to publish the news about pay hike of central government employees.
We all know the Federations of Central Government employees have been holding demonstrations and Struggles to invite the attention of govt to settle their many demands for the past few months. As a result of this Centre has accepted to settle some demands.
One of the main demands laid down before the Central Government by Federations is 50% DA Merger. A Sensational News was spread across the country that a decision on 50% DA merger will be announced in the Cabinet Meeting held last week. But, though there
was no any formal announcement in this regard, the approval of 7th CPC Terms of reference by Government made everyone to think that it will be considered sooner or later.
A Popular English daily published a tabloid news last week, in which The daily claimed that a govt official informed them ‘the government servants will get 30% Pay Hike on account of Merger of 50% dearness Allowance with Basic Pay.’
Is that true? Let us see with an example
For example, let us consider as if a government servant is working in one of the four metropolitan cities and rendered 10 years’ of service.
His Basic Pay is (7600+2400)10,000
Dearness Allowance 100%10,000
HRA 30%3,000
Transport Allowance (1600+1600)3,200
Total 26,200
Rs.26,200 is the maximum total emoluments of this particular Basic Pay. This will not be exceeded at any cost but there are some reasons to make these total emoluments to be lesser than this.
The salary with same basic pay after DA merger
In case the central government agrees to merge the 50% DA with basic pay, then that govt servant can expect a considerable pay hike on account of Merger of 50% DA.
After Merger of 50% DA his Pay will be as fallows
Basic Pay (7600+2400)10,000
Dearness Pay5,000
Dearness Allowance7,500
Total Hike in Pay (29400 - 26200)3,200
% of Hike is 12%
How can one say that he will be getting 30% hike when he is getting only Rs.3200 in addition to his previous salary of Rs.26,200 after 50% DA merger?
Everybody fallowed the particular Daily and started writing that the Government servants will get 30% salary hike after 50% DA is merged with basic Pay. But this example clearly shows that there is no such hike and if the DA is merged with Basic Pay the increase in salary will be only from 8% to 15%
According to their entitlement the percentage of increase will vary, but no one can get 30% pay hike on account of DA merger.

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