Monday, May 16, 2016

7th Pay Commission arrears to be paid in August

7th Pay Commission arrears to be paid in August

New Delhi: The central government is going to start payment of salaries to its 48 lakh officials and employees according to 7th Pay Commission award from July and six months’ arrears are to be paid in August.

As per official calculation, no huge amount will be required for the payment of arrears.

The government in its annual budget has provisioned Rs 70,000 crore to meet the demand for implementation of 7th Pay Commission for central government employees which will take effect from January 1, 2016, while the allowances would be paid from July 1, 2016.

Basic salary of central government employees is likely to be tripled under the 7th Pay Commission award with employees in the lower rung getting the highest percentage of raise.

In the highest grade, basic salary is likely to rise around to Rs 2,70,000 to Rs 2,50,000 and in the lowest grade to Rs 21,000.

In June end, the cabinet is likely to approve the new pay scales for central government employees after considering report of the 7th Pay Commission, led by Justice A K Mathur, and the report of the 13 member Empowered Committee of Secretaries headed Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission, which was set up in January.

The officials familiar with the developments told The Sen Times that the Finance Minister Arun Jaitley has not been under pressure to meet the demand as he has surplus money in the national exchequer.

“We have provisioned for around 60-70 per cent of the total burden that was talked about,” the officials said adding about Rs 70,000 crore has been provided in the Budget.

The government will issue a circular in respect of online pay-fixation, which will reduce hassles as doing the same manually is both time-consuming and harassing. Pay fixation is a mandatory procedure for getting new pay and perks, the officials told us.

“We’re at the for issuing the notification and one more month will be required to issue after cabinet nod, so we hopefully say that central government employees will get new pay and arrears in July and August respectively,” a source close to the developments told The Sen Times.


Increase in Bonus Eligibility and ceiling – Advisory Note by Defence

Increase in Bonus Eligibility and ceiling – Advisory Note by Defence

Increase in Bonus Eligibility and ceiling – Advisory Note by  DGR advisory of Defence on Payment of Bonus to all Guards & Other Staff employed by DGR

Defence circular on increase of bonus to guards based on the Payment of Bonus (Amendment) Bill, 2015


The Payment of Bonus (Amendment) Bill, 2015 notified : Increase in the Eligibility Limit under clause (13) of Section 2 and Calculation Ceiling under Section 12 of the Payment of Bonus Act 2015

1. The Payment of Bonus (Amendment) Bill, 2015 was passed by the Parliament in the just concluded Winter Session of the Parliament. The Payment of Bonus (Amendment) Act, 2015 has been published in the Gazette of India, Extraordinary on 1st January, 2016 as Act No.6 of 2016. The provisions of the Payment of Bonus (Amendment) Act, 2015 shall be deemed to have come into force on the 1st day of April, 2014.

2. The Payment of Bonus (Amendment) Act, 2015 envisages enhancement of eligibility limit under section 2(13) from Rs.10,000/- per month of Rs. 21,000/- per month and Calculation Ceiling under section 12 from Rs.3500 to Rs.7,000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher. The Payment of Bonus (Amendment) Act, 2015 also mandates previous publication of draft subordinate legislations, framed under the enabling provisions under the said Act, in the Official Gazette for inviting objections and suggestions before their final notification.

3. The Government has been receiving representations from trade unions for removal of all ceilings under the Payment of Bonus Act, 1965. It is also one of the demands made by them during the country-wide General Strike held in February, 2013 and September, 2015. As the last revision in these two ceilings were made in the year 2007 and was made effective from the 1st April, 2006, it was decided the Government to make appropriate amendments to the Payment of Bonus Act, 1965.

4. These changes in the Payment of Bonus Act, 1965 will be benefit thousands of work force.

(Gangesh Kumar)
Principal Director (Employment)
Dte Gen Resettlement
Ministry of Defence
New Delhi – 110066

File : 2112/SA/Bonus/Emp
Date : 24 Feb 16,
Place : New Delhi

Download Defence circular dated 24.02.2016

7th Pay Commission Latest News

7th Pay Commission Latest News – PMO keen on 7th CPC Salary to be based on Inflationary Trend – Reasonable expectations of central government employees will be met.

The Central government has hardly been insensitive to the reasonable expectations of central government employees while announcing salary hikes in pay commissions. The same appears in the case of the 7th Pay Commission as well.

The Prime Minister’s Office is keenly awaiting the final touch up to the 7th Pay panel’s recommendations, and is keen that inflationary trends be kept in perspective while finalising the salary structure of the government employees.

The trade unions, while protesting the 7th Pay Panel’s recommendations, said that the proposed 7th Pay Commission hike was the lowest in many decades and not in sync with inflation.

Other than the pressure of trade unions, the results of the Assembly election in five states, West Bengal, Assam, Tamil Nadu, Kerala, Pondicherry, are likely to have an influence on the final pay out.

The notification towards implementation of the seventh pay commission will be announced only after the result of the elections. If the mandate goes totally in favour of the Opposition, the government will be under greater pressure to keep the dissatisfaction related to salalry hike in check.

Even other wise, the government would like to nip the popular opinion building up that the current government is apathetic to the needs of common man.

The two earlier policy decisions on the proposed EPF changes and their subsequent rollback showed government in a bad light.

Source: Zee News

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