Wednesday, January 7, 2015

Expected DA for January 2015 – DA Hike Almost Decided..!

Expected DA for January 2015 – DA Hike Almost Decided..!

Until the 6th CPC, the Dearness Allowance didn’t increase by more than 1 or 2%. It was only after the 6th Pay Commission that it began to increase substantially. With the skyrocketing prices of essential commodities, Dearness Allowance too began to rise. Twice, it touched double digits. In July 2013 and Jan 2014, within 12 months the DA has leapt on to the 100%. We cannot forget that the each instalment gave 10%. Then, it slumped.
Dearness Allowance, which is given once every six months, is likely to be 6% hike from January 2015. This is 1% less than the previous hike of additional DA from July 2014. The total DA from Jan 2015 will become 113%.
As soon as the first instalment is confirmed, expectations will start growing about the second instalment, i.e., ‘Expected Da from July 2015‘. The second instalment of the year will cover the months between July and December 2015. This will be the last time that the DA hike will be calculated based on the method recommended by the 6th Pay Commission. DA of 2016 will be calculated based on the recommendations made by the 7th Pay Commission.

7th Pay Commission on DA Calculation..? Is there any possible to change in the method of calculation..?
First, we have to know about the calculation of Dearness Allowance…
How DA is calculated..?
Month Year /  CPI(IW) BY 2001=100 / Total / Average / App. DA / DA%
First is the month and year. Then the CPI (IW) Base Year 2001=100 and the relevant data. In the next column, you have the sum total of all the 12 months, i.e., the total of the declared AIPCIN numbers for the past 12 months. Next comes the division of the sum total by 12.

The next step is the most crucial one. You will have to find out by how much it exceeds 115.76. You will have to calculate the excess as percentage of 115.76.

(12 Monthly Average) – 115.76
————————————————–  X  100 = Percentage increase in prices

DA Calculation


The Lokpal and Lokayktas Act, 2013 — Submission of declaration of assets and liabilities by the public servants

Dopt Orders on submission of declaration of assets and liabilities by the public servants

The Lokpal and Lokayuktas Act, 2013 – Submission of declaration of assets and liabilities by the public servants.
F. No. 21/2/2014-CS.I (PR)
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
CS.I Division
2 Floor, Loknayak Bhawan,
Khan Market, New Delhi
Dated: 7.1.2015

Subject: The Lokpal and Lokayktas Act, 2013 — Submission of declaration of assets and liabilities by the public servants

Ministries/ Departments may refer to CS.I Division, DoPTs OM. of even number dated 31st July 2014 and 9th September 2014 on the subject
mentioned above.

2. The Government has since amended the Public Servants (Furnishing of Information and Annual Return of Assets and Liabilities and the limits for

Exemption of Assets in Filing Returns) Rules, 2014 under the Lokpal and Lokayuktas Act, 2013 vide Notification No G.S.R. 918(E) dated 26th December 2014. in terms of which, the last date of revised returns of assets and liabilities by public servants has been extended to 30th April 2015. The Notification is available on the website of this Department. Further, the Govt. have also modified Form No.11 and Form No.IV for filing of the returns. The  revised formats are attached herewith. Accordingly, all the CSS Officers shall be required to file the revised declarations, information as on the 1.8.2014 by 30.4.2015.

3. The extended date and the modified formats for filing of the returns may be brought to the notice of all CSS Officers. Ministries / Departments are also requested to forward the declarations, information, returns submitted by US and above level officers of CSS to CS.I Division, DoPT for records.
(Utraarsh R.Tiwaari)

All India Strike by 7 Lakh Coal Mine Workers

All India Strike by 7 Lakh Coal Mine Workers
More than 7 lakh employees across the country have launched a 5-day long strike from yesterday, protesting the Central Government’s decision to sell the company’s shares. This is expected to severely affect the electric power generation for the next few days.

The Central Government has decided to revamp the coal mine companies and sell the shares in the open market. Coal mine workers all over the country had announced a 5-day long strike, claiming that the decision was against the principles of nationalization. The striking workers had also presented their list of demands.
As per their announcement, the strike began with the very first shift in the morning, yesterday. More than 7 lakh coal-mine workers are going to gherao their head-quarters and participate in the strike.

More than 15 lakh tons of coal is dug up everyday at the government-owned mines, and sent to the thermal power stations for generating electricity. The strike is expected to take a severe toll on power generation, and thus, power supply, all over the country. Even otherwise, coal production has been affected due to shortage of power to these mines. With the commencement of strike, the situation is very likely to worsen.
Five important trade unions, including Bharatiya Janata Party’s Bharatiya Mazdoor Sangh (BMS), INTUC, AITUC, CITU and HMS, have declared their support and participation in the strike. The fact that BJP’s own workers’ union is participating in the strike has become a source of embarrassment for the Central Government.

IBA Circular on deferment of bank strike proposed on 7th Jan 2015

IBA Circular on deferment of bank strike proposed on 7th Jan 2015

Indian Banks’ Association
HR & Industrial Relations
January 6, 2015
Chief Executives of Member Banks
which are parties to the Bipartite Settlement
Dear Sir/Madam,

Strike Notice by UFBU on 7th January 2015 – Deferred

Please refer to our Circular No.CIR/HR&IR/Q/2014-15/1084 dated 23rd December 2014 regarding the strike call given by the United Forum of Bank Employees (UFBU) on 7th January 2015. In accordance with the submission in conciliation meeting held on 5.1.2015, we had convened meeting with the Unions/Associations on date. On being satisfied with further improvement in offer in wage hike by IBA, the UFBU has decided to defer the strike scheduled on 7th January 2015.

Member banks may kindly take note of the above and convey suitably to all their establishments.

Yours faithfully,
Click here to view the original circular

Railway Board Order: Recognition of Certificate/Qualification of Industrial Training Institute

Recognition of Certificate/Qualification of Industrial Training Institute (I.T.I.) upgraded as Centre of Excellence (COE) and its acceptance for the purpose of employment in railways – Railway Board Order


RBE NO.147/2014

No, E(NG)-II/2005/RR-1/7
New Delhi. 29-12-2014.

The General Manager (P),
All Zonal Railways/Production Units
Chairmen. Railway Recruitment Boards

Sub: Recognition of Certificate/Qualification of Industrial Training Institute (I.T.I.) upgraded as Centre of Excellence (COE) and its acceptance for the purpose of employment in railways.

Ref: Board’s letter of even number dated 01/12/2012 (RBE No.16/2012).

Pursuant to issue of instructions contained in letter under reference. railway establishments have been seeking a comparative list/mapping of trades awarded by industrial Training institutes (I.T.Is) under the Craftsman Training Scheme (CTS) vis-a-vis courses/trades granted by Centre of Excellence (COE).

2. The matter has been examined in consultation with Directorate General of Employment & Training (DGET), M/o Labour & Employment and a tabulated position of comparative list/mapping of trades supplied is sent herewith for information and compliance:

S. No. Qualification certificate (s) submitted by the candidate obtained from COE
Suggested trade under State Council for Technical Education (SCVT)/ National Council for Technical Education (NCVT)
(i) National Trade Certificate (NTC) of one year- BBBT in sector of Electrical COE plus NTC of any of the following 06 (six) month course advance module in :- Repair & Maintenance of Electrical Machine & Power Supply; OR Repair & Maintenance of Domestic Appliances; OR Operation & Maintenance of Equipments used in HT, LT, Substation Cable Jointing; OR
Non-conventional Power Generation, Battery and inverter; OR Repair and Maintenance of instruments used in Electrical Engineering.
(ii) National Trade Certificate (NTC) of one year BBBT in sector of Automobile COE plus NTC of any of the following 06 (six) month course advance module in :- Denting Winding and Welding; OR Servicing & Overhauling of Automobiles (Petrol); OR Servicing & Overhauling of Automobiles (Diesel) OR Overhauling of Fuel Injection System & Steering Mechanism; OR Repair & Maintenance of Wheel; Re-trading of Tyres & Wheel Balancing; OR Auto Electrical Electronics & Air-conditioning in Automobiles; :
Mechanic Motor Vehicle
(iii) National Trade Certificate (NTC) of one year BBBT in sector of Fabrication COE plus NTC of any of the following 06 (six) month course advance module in: Structural/Pressure Parts Fitting; OR Structural Welding; OR Pressure Vessel & Pipe Welding; OR Welding Inspection & Testing; OR TIG/MIG Welding. :
(iv) National Trade Certificate (NTC) of one year BBBT in sector of Refrigeration & Air Conditioning COE plus NTC of any of the following 06 (six) month course advance module in :- Domestic, Commercial Refrigeration & Air Conditioning; OR Central Air Conditioning Plant, Industrial Cooling & Central Air Conditioning Plant, Industrial Cooling & Package; OR Cold Storage, Ice Plant & Ice-Candy Plant. :
Refrigeration & Air Conditioning
(v) National Trade Certificate (NTC) of one year BBBT in sector of Electronics COE plus NTC of any of the following 06 (six) month course advance module in :- Radio, Audio. Video System and Appliances; OR Inverters, UPS, Voltage Stabilizers and Industrial Drives; OR Repair & Maintenance of Electronic Test Equipment; OR Communication System, Embedded S stern and PLC. :
Electronic Mechanic
(vi) National Trade Certificate (NTC) of one year BBBT in sector of Information Technology (IT) COE plus NTC of any of the following 06 (six) month course advance module in :- Multi Media & Animation; OR Repair & Maintenance of Hardware of Computer & Peripheral Computer Networking ; OR Digital Videography; OR E-Accountancy & Office Management; OR Multi Media & Creative Designing; OR Information System Management. :
Information Communication Technology System Maintenance
(vii) National Trade Certificate (NTC) of one year BBBT in sector of Instrumentation COE plus NTC of any of the following 06 (six) month course advance module in:- Industrial Electronics & Instrumentation; OR Analytical Instrumentation; OR Process Control Instrumentation; OR Medical Instrumentation; OR Optical Instrumentation; OR Electronic Test Measuring Instruments. :
Instrument Mechanic

3. Apart from the above, comparative list/mapping of trades circulated vide letter No. 2012/E(RRB)/3/2 dated l4/9/2012 (copy enclosed) shall also be complied to.

4. Past cases which have been finalized need not be re-opened. Cases where final decision is yet to be taken may be dealt in terms of above instructions.

Please acknowledge receipt.

(Hindi version will follow)
Encls.. As stated.
(Lily Pandeya)
Director Estt. (N)-II
Railway Board.

For One Rank One Pension, war veterans to march on Delhi

For OROP, war veterans to march on Delhi: Ajay Sura,TNN

CHANDIGARH: More than 10,000 restless ex-servicemen from across the country will hold a massive protest at Jantar Mantar in New Delhi on February 1 to pressurize the Centre into keeping its promise on the one rank one pension (OROP) demand.

During the 2014 Lok Sabha election campaign, both the BJP and Congress had pledged to implement the scheme. But the new government has not implemented it even after completing 200 days in office. Several ex-servicemen welfare organizations have come under the banner of Indian Ex-servicemen Movement (IESM) for the protest.

The veterans are also unhappy over defence minister Manohar Parrikar recent statement that he would try to implement 80% of OROP.

“It has to be implemented 100% as promised by the Prime Minister on a number of occasions. Any dilution will not be OROP,” said Major General Satbir Singh (retd), chairman of IESM. He also wants a white paper from the Centre on OROP, given that Narender Modi had pledged to implement the scheme in his first election rally at Rewari in September 2013 after he was declared BJP’s prime ministerial candidate.
“If it is short of funds, the government should openly say so. We are even ready to accept bonds but give us our 100%,” Gen Satbir said.

Brigadier Harwant Singh (retd), president of the all India Defence Brotherhood, said, “As soldiers, we never thought of performing 80% while guarding the nation. We are feeling dejected and restless because of the delay.”

Brigadier Kiran Krishan (retd) of IESM said OROP was sanctioned on February 17, 2014. “Ten months have passed since. The BJP government enthusiastically promising to implement it had raised our hopes. But the party seems to be dragging its feet.”

In its last budget in February, the UPA government had provisioned for Rs 500 crore for OROP. The BJP government had announced Rs 1,000 crore in its interim budget in July. However, army authorities estimate that Rs 5,000 crore would be required, whereas the accounts department of the defence ministry says Rs 9000 crore would be needed to implement OROP.

Out of 30-lakh ex-servicemen in the country, Punjab alone has around 3 lakh, Haryana has nearly 2.8 lakh, Himachal Pradesh (HP) has around two lakh. Around 10,000 retired ex-servicemen live in Chandigarh.
OROP implies uniform pension to personnel retiring on the same rank with the same length of service irrespective of their date of retirement.

Source: TOI

Exempt Defence Civilian Employees From New Pension Scheme – AIDRDO TOA

Exempt Defence Civilian Employees From New Pension Scheme – AIDRDO TOA

All India DRDO Technical Officers Association have represented both the Central Government and 7th Pay Commission to exempt the Defence civilian employees from New Pension Scheme. The copy of the Representation of AIDRDO TOA is given below..

“……Dear colleagues
We have represented to both previous NDA & UPA Governments to scrap NPS.Now we have requested the present Government to exempt the Defence civilian employees from New Pension Scheme at par with Armed Forces.Let’s be optimistic that present Central Government will exempt us.Let’s build pressure on the Govt. by ensuring that employees/officers who joined after 01/01/2004 send individual representations to the Cabinet Secretary through proper channel.Pl.forward this mail to our younger brothers & sisters who joined after 01/01/2014.

During the meeting with Chairman,7th CPC we have categorically told that New Pension Scheme should be rescinded and scrapped.We requested that the CPC can intervene as 6th CPC had given recommendations that Defined Pension Scheme is better than NPS.We requested that the recommendations of 6th CPC should be applied to all entrants since 01/01/2004.

The extract from our memorandum to 7th CPC on NPS is given below for ready reference.

New Pension Scheme (NPS)

2.1 The contributory pension system brought in by the GOI through their notification dated 22.12.2003, now renamed as National Pension System under PFRDA Act, has been imposed on Government employees who entered service on or after 1.1.2004.

2.2 This is an illegal act in as much as the Supreme Court of India had held Pension as an enforceable inalienable fundamental right. Therefore it should be scrapped or at least not made applicable to Government employees. This has also divided the CG employees into two categories and therefore it is discriminatory in respect of persons who have entered service on or after 1.1.2004 who had been denied the statutory pension. Any discriminatory scheme is illegal and ultravires of Article 14 of the Constitution. On this count also the NPS cannot be made applicable to the Government employees.

2.3 The Centre for Economic Studies and Policy, Institute for Social & Economic Change, Bangalore in a Study of Terminal Benefits of the Central Government Employees sponsored by the VI CPC had also observed that Civil Services Pension is in the nature of a deferred wage. It is well known that the principle guiding the pay package of civil servants is one of intentionally spreading out the compensation over a long period of time, thereby the wages paid out during the course of the work tenure is kept low by design, and the pension payments made during the retirement phase compensate for the low working wages.

2.4 The above mentioned study under the heading “Arguments against pension reforms” states as follows:
“Deferred Wage: In the context of civil servant pension payments, it is argued that, the principle guiding the fixation of pay package is one of intentionally spreading out the compensation over a long period of time, whereby the wages paid out during the course of work tenure is kept low by design, and the pension payments made during the retirement phase compensate for the low working wages. The Supreme Court of India held that pension is neither a bounty nor a matter of grace depending upon the sweet will of the employer. It is not an ex-gratia payment, but a payment for past services rendered. It is a social welfare measure, rendering socio-economic justice to those who in the heyday of their life ceaselessly toiled for the employer on an assurance that in their old age, they would not be left in the lurch.”
“Larry Williams observes “Actually, civil service pensions, because they are not based on contributions, are best described as deferred wages. Civil servants accept a lower current wage in exchange for the promise of a pension in their old age. If this pension were contributory, they would insist on a higher wage and government would have to either increase taxes or borrow (issue debt) to pay it. The real cost of civil servants is thus much higher than recorded under the current system of cash accounting. A good reform would be to move to a system of accrual accounting setting up at least a notional fund to pay these deferred wages” (Larry Wilmore, 2004)” “Public and private sector pay differentials: A comparison of the public and private sector wages reveals that while the public sector wages for the lower grades compares well with that of the private sector, the salaries of the employees belonging to the higher grades are highly unfavourable to the public sector employees. The post-retirement benefits that the government employees are entitled to act as some incentive to retain them in government sector.”

2.5 The above study had submitted the following estimated pensionery outgo which tends to increase during the period from 2014-2038. It is only after 2043 that it starts declining and will be reduced to zero only in 2088. The table is given below:

Table showing estimated pensionery outgo 
 Year                                            Employee Pension Payout (in Rs   Crores) Family Pension    Pay out (in Rs. Crores) Total pension payout (in Rs.Crores)
2004 11300.69 2983.38 14284.07
2008 13532.84 3572.68 17105.52
2013 16549.07 4368.94 20918.02
2018 21862.54 5771.79 27634.33
2023 27723.68 7319.11 35042.80
2028 34076.27 8996.13 43072.41
2033 39321.68 10381.01 49702.69
2038 45164.50 11923.41 57087.90
2043 41747.23 11021.30 52768.53
2048 35011.92 9243.18 44255.10
2053 25405.44 6707.07 32112.51
2058 16303.15 4304.07 20607.22
2063 8179.51 2159.39 10838.90
2068 3159.88 834.19 3994.07
2073 800.68 211.34 1012.02
2078 110.26 29.17 139.43
2083 3.52 0.97 4.49
2088 0.00 0.00 0.00

2.6 The above study had also pointed out that expenditure on pensions of civil servants of high income OECD countries on an average is 2% of GDP (less than 1% in Ireland and more than 3.5% in Austria*)(* Source: OECD Social Expenditure Database). But in the 8 South Asian countries it is less than 1% of GDP (Source: World Bank Data base). However, in India between 1964-65 and 2004-05 on an average pension payments (Civil Service pension paid by Central Government) have constituted 0.51% share of GDP. The Pension liability would continue to increase and reach 0.54% level by 2014-15 and remain at that level till 2024-25 after which they would decline as a percentage of GDP according to the same study conducted by Dr.Gayatri at the instance of VI CPC. These figures argue themselves in favour of continuation of the Defined Benefit Pension Scheme for all Central Government employees instead of throwing a section of them to market based NPS. According to 2011 census 62.8% are in the age group of 15 to 60 and only 8.2% are above the age of 60.

2.7 From the above projection it is very clear that the benefit of NPS will commence only after 30 years i.e. in 2044. And during the period it will increase exponentially as because in addition to the Statutory pension liability the Government will be contributing to the NPS also @ 10% of annual salary bill of the CG Employees who have entered service on or after 1.1.2004.

2.8 The final conclusion of this study team has been as under:

“Mainly given the fact that the future liability although may be large in terms of the absolute size is not likely to last very long and does not constitute an alarmingly big share of the GDP which is also on the decline, it appears that pursuing the existing “Pay As you Go” to meet the liability would be an ideal solution.”

2.9 Applying this conclusion we may suggest that the NPS may not be made applicable to the Government employees and all those who had been covered under NPS may be reverted back to statutory pension scheme. The Government may be asked to study the experiences of this scheme in several other countries in the world. In Chile such a scheme has been reversed as because the return which the low paid employees got out of the annuity purchased was not as good as 50% of LPD but as low as 20% of LPD. The UK Government had to pay out of the exchequer large amount by way of subventions in order to ensure that that annuities purchased yield 50% of LPD as pension. It is well known that in USA where there were similar pension schemes dependent upon the market had collapsed during the financial melt down from 2008 onwards. It is estimated that more than 3.5 trillion $ worth of pension wealth was lost. The workers not only lost their pension but also their jobs. Our respectful submission is that taking into account the demographic considerations of India which is a country of young do not need any such market oriented pension scheme, particularly when the international experience is that such schemes had failed and our country can afford to pay pension to civil servants which stands at level of 1% of the GDP. We conclude by quoting the opinions of experts on the future of market dependent pension Scheme.

Mr Joseph Stiglitz (Chief economic advisor to former president of USA Bill Clinton, former vice-chairman and chief economic advisor, World Bank, Nobel Prize winner, Professor of economics, Columbia university) said that “Stock market does not guarantee returns. It does not even guarantee that the stock values will keep up with inflation. Privatization would not protect retirees against the social security systems insolvency. Argentina’s privatization of its pension system was at the centre of its fiscal woes”.

Mr Dean Baker (Co-director for centre for economic and policy research, Washington) said “Privatisation means that you would not have a guaranteed benefit that you have today. It would depend on how will your investments do or how well they have done at the point you retire. He quoted the collapse of NASDAQ and Enron. In Britain, Insurance companies could not honour their promises and the Government had to compensate with 8 billion pounds”.

We have requested the PFRDA Authority to furnish certain information on their working . On receipt of this information we may make certain further submission for the consideration of the Commission.”

With greetings,
Yours fraternally
V.Krishna Mohan

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