Monday, December 5, 2016

7th Pay Commission: Finmin gets 2 months more to issue higher allowances notification

7th Pay Commission: Finmin gets 2 months more to issue higher allowances notification

New Delhi: The Finance Ministry has got 2 months extension to issue the higher allowances notification under 7th Pay Commission recommendations, a Finance Ministry official said on Monday on condition of anonymity.

"The October-November month is the scheduled for issuing notification for the Finance Ministry, but the time was extended by 2 months because the cash crunch on account of demonetisation, which is taking time to get normality.

Therefor,unless the banks can begin to function with a modicum of efficiency, the government will not issue notification on higher allowances to save demonetisation chaos," the official said.

He further said “the issue of increased financial activities after demonetisation compels the government to keep in abeyance to issue higher allowances notification for getting normalized the position and it is likely to issue from January next, after the the cash crunch will ease.

However the government wants to issue the higher allowances notification speedily in a time bound manner."

The committee on allowances head Finance Secretary Ashok Lavasa said in October, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."

The government constituted the committee on allowances in June headed by Finance Secretary Ashok Lavasa to examine the 7th Pay Commission recommendations on allowances, other than dearness allowance.

"The committee has been asked to submit its report within four months and it was ready to submit its report in advance but the government intends to accept the report after December 30, deadline for depositing demonetised notes," the official said.

Existing allowances are now being paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

Government asks staff to become ambassadors for digital push

Government asks staff to become ambassadors for digital push

New Delhi: Government has asked its employees to maximise use of debit cards for personal transactions and become 'ambassadors' for promoting digital payments.

The Finance Ministry has asked all ministries/departments to encourage their employees to make use of debit cards for personal transactions instead of cash, an official statement said.

It said that given the progress made in banking technology, it is assumed that each employee would be in possession of a debit/ATM card linked to his/her bank account.

"Ensuring and encouraging government employees to maximise the usage of debit cards for personal related transactions instead of cash would go a long way, with the employees serving as ‘ambassadors’ for the digital push, and also motivate, encourage the general public in taking up the cause," the ministry added.

Government and PSUs have been disbursing salaries to majority of their employees through electronic mode into their bank accounts.

The ministry said that in the recent years, advancements in banking technology, progress in mobile banking and innovative technologies to facilitate digital payments have enabled large number of small denomination transactions to be handled smoothly in electronic mode.

Following the announcement of demonetisation of 500 and 1000 rupee notes on November 8, the government has been taking a slew of measures to promote digital transaction.

While the Finance Ministry has asked public and private sector banks to waive off transaction costs for all payments made through debit cards, the Road Transport Ministry has asked vehicle manufacturers to provide a digital tag on all new cars for e-payments at toll plazas and check posts.
The Finance Ministry has also asked government departments to liaise with their accredited banks and set up special camps to ensure that all its employees are in possession of debit cards.

It also asked other ministries/departments to issue similar advisories to their attached offices, PSUs and autonomous bodies.


High Court asks RBI to consider issue of salary payment to teachers

High Court asks RBI to consider issue of salary payment to teachers

Mumbai: The Bombay High Court today asked the RBI to consider the issue of payment of salaries to aided school teachers since it is disbursed through district cooperative banks which have been prohibited from depositing and exchanging old currency notes.

The Mumbai, Solapur, Nashik and Pune District Central Cooperative Banks had approached the high court challenging the RBI circular of November 14, restricting them from exchanging or depositing old currency notes of Rs 500 and Rs 1,000, which were declared as illegal tender under the government’s demonetisation move on November 8.

Solapur co-operative bank counsel V M Thorat today informed the court that the bank receives around Rs 95 crore from the state government for salaries of teachers in aided schools, but due to the circular the bank is not able to disburse the amount.

A division bench of Justices A S Oka and Anuja Prabhudessai asked the Reserve Bank to consider the issue.

"RBI needs to consider this issue. We cannot take this matter up on merits as the Supreme Court is already seized of the main contentions raised in the petitions, but this particular issue about teachers’ salaries can be looked into," Justice Oka said.

"It is common knowledge that teachers of aided schools get their salaries from cooperative banks. We want to know how teachers will get their salaries now," the court said.

Thorat informed the bench today that the banks have filed application in the apex court seeking clarification on whether the high court can hear the matter.

"The application along with the transfer petition filed by the Union government seeking for all petitions filed on the demonetisation issue to be heard by SC itself is posted for hearing on December 9," the counsel said.

The high court then adjourned the cooperative banks petitions to December 14.


7CPC - Pay hike after implementation of Seventh Central Pay Commission

7th CPC - Govt will consider the report of Committee, says in Parliament

Pay hike after implementation of 7th CPC



ANSWERED ON-29.11.2016

Pay hike after implementation of Seventh Central Pay Commission

1526 . Dr. Sanjay Sinh

(a) the salient features of the Seventh Central Pay Commission;

(b) the percentage of increase in the salaries of employees after the implementation of the recommendations of Seventh Central Pay Commission;

(c) the percentage of increase in the salaries of employees after the fourth, fifth and sixth Central Pay Commission;

(d) whether the extent of pay hike this time is very less as compared to the previous pay hikes; and

(e) whether Government would reconsider it in view of the resentment among employees and pay anomalies?



(a): The Seventh Central Pay Commission (7th CPC) has recommended the minimum pay of Rs. 18,000 per month and uniform fitment factor of 2.57 for all employees. The system of Pay Band and Grade Pay has been replaced with separate Pay Matrices for Civil, Defence and Military Nursing Services personnel. The Commission has recommended abolishing 52 allowances and subsuming of another 36 allowances either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by a Risk and Hardship Matrix. The Commission has also recommended revised pension formulation for all personnel who have retired before 01.01.2016 to bring about complete parity of past pensioners with current retirees.

(b) to (e): Salary of all employees will increase by at least 14.29 per cent after the implementation of Seventh Central Pay Commission (7th CPC) recommendations. The 7th CPC has mentioned that increases given in Minimum Pay were 27.6%, 31.0% and 54.0% by Fourth, Fifth and Sixth Central Pay Commissions, respectively. The anomalies arising out of implementation of the recommendations of the 7th CPC will be examined by the Anomalies Committee which has already been constituted. Based on the report of the Committee, the matter will be considered by the Government and appropriate decision will be taken.


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