Central Union welcomes 7th Pay Comm; seeks revision every 5 yrs

Central Union welcomes 7th Pay Comm; seeks revision every 5 yrs

New Delhi: Trade union representing central government employees today welcomed the announcement to set up the 7th Pay Commission, but demanded that recommendation be implemented with retrospective effect from January 1, 2011.

The government has announced constitution of the Seventh Pay Commission, which will look into the salaries, allowances and pensions of about 80 lakh of its employees and pensioners.

"We welcome the government's move to set up the 7th Pay Commission but we have a reservation. It should be implemented with effect from January 1, 2011 as in the case of Central PSUs whose employee pay scales are revised every five years," Confederation of Central Government Employees and Workers President K K N Kutty said.

Earlier in the day, Finance Minister P Chidambaram said in a statement that Prime Minister Manmohan Singh has approved the constitution of the 7th Pay Commission and its recommendations are likely to be implemented with effect from January 1, 2016.

Kutty said that during the discussion, the Confederation would press for merger of up to 50 percent of dearness allowance with the basic pay, which is a prerequisite for setting up a pay commission.

As per the practice, the dearness allowance is hiked twice in a year by the Central Government to provide relief from inflation to its employees.

This is based on a set formula after factoring in the year-long average of all India Consumer Price Index for Industrial Workers.

The merger of DA with basic pay helps central government employees as certain allowances are paid as proportion of the basic pay and hence merger results in higher allowances.

PTI
Source: Zee News
[http://zeenews.india.com/business/news/economy/central-union-welcomes-7th-pay-comm-seeks-revision-every-5-yrs_85287.html]

First separate pay commission for Indian military: NDTV News

First separate pay commission for Indian military: NDTV News
Government to set up first separate pay commission for Indian military: NDTV

New Delhi: India's armed forces are likely to have their own pay panel for the first time since independence.

This comes as the government prepares to set up the seventh Pay Commission to decide on salary hikes for the 50 lakh central government employees, ahead of state polls and national elections due by May. The pay panel's recommendations are expected to be implemented from January 2016.

All three military chiefs had written to the Defence Minister last year, asking for pay parity with civilian employees. The armed forces have also been demanding the one rank one pension and one rank one pay rule.

They are also pushing for fixing rank pay and fixing pay structure for jawans and junior commissioned officers (JCOs).

In June last year, Defence Minister AK Antony had reportedly written to Prime Minister Manmohan Singh on "growing discontent among the services personnel due to the anomalies in payment and salaries."

Mr Antony had said that service personnel, ex-servicemen and pensioners were "equally agitated" and suggested that corrective action be taken or "things may take a bad turn."

A month later, the PM set up a four-member committee of secretaries, headed by the Cabinet Secretary, to look into the demands. The armed forces had then objected to the absence of military representation on the committee. Later, some of the anomalies were corrected, and the government had promised a separate pay commission for the armed forces.

Government salaries had been substantially hiked under the sixth pay commission headed by Justice BN Srikrishna. The revised pays fixed the salary of the Cabinet Secretary at Rs 90,000 a month and Secretary at Rs 80,000 per month, while making Rs 6,660 as the minimum entry level salary.

Source: NDTV
[http://www.ndtv.com/article/india/government-to-set-up-first-separate-pay-commission-for-indian-military-423434]

Setting up of Seventh Pay Commission: Confederation says its the victory of the workers

Setting up of Seventh Pay Commission: Confederation says its the victory of the workers
ANNOUNCEMENT OF 7TH CPC IS ONE STEP FORWARD AND IT IS THE VICTORY OF THE WORKERS WHO FOUGHT FOR IT: Confederation

7th CENTRAL PAY COMMISSION

ANNOUNCED BY THE GOVERNMENT

Central Government today announced the constitution of the 7th CPC. Confederation of Central Government Employees and workers has been demanding appointment of 7th CPC right from 2011 onwards. We have conducted continuous agitational programmes including Parliament March and also one day nationwide strike on 12th December 2012. After 12th December Strike we have decided to go for indefinite strike and strike ballot is also announced. We congratulate the entire Central Government employees who rallied behind Confederation. Confederation is the only organization which has conducted serious agitation demanding constitution of 7th CPC.

Government has not yet announced the Chairman, Committee members etc of the 7th CPC and also terms of reference. Further our demand for merger of DA, giving effect from 01.01.2011, inclusion of three lakhs Gramin Dak Sevaks under the purview of 7th CPC, granting DA merger to GDS and settlement of other demands in the 15 points Charter of Demands are also pending. Before announcing the terms of reference of 7th CPC. If Government is not ready to accept our above demands, Confederation National Executive will meet shortly and shall decide for further course of action.

Source: http://confederationhq.blogspot.in/2013/09/flash-news.html

DA from July 2013 Order issued by Finmin for 10% hike

DA from July 2013 Order issued by Finmin for 10% hike

DA FROM JULY 2013 – FINANCE MINISTRY ISSUES ORDERS TO REVISE DEARNESS ALLOWANCE FROM 80% TO 90% WITH EFFECT FROM 1ST JULY 2013 FOR CENTRAL GOVERNMENT EMPLOYEES

No. 1-8/2013-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi,

Dated: 25th September, 2013.

OFFICE MEMORANDUM

Subject: Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.7.2013.

The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1(2)/2013-E-II (B)  dated  25th April, 2013 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 80% to 90% with effect from 1st July, 2013.

2     The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No. 1 (3)/2008-E-II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3     The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.

4     These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

5     In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller and Auditor General of India.

6. The Hindi Version of this O.M is also issued.

Sd/-
(K.R. Sharma)
Under Secretary to the Government of India

Source: www.finmin.nic.in

Prime Minister Approves the Constitution of Seventh Central Pay Commission; Recommendations are Likely to be implemented with effect from 1st January, 2016

FM: Prime Minister Approves the Constitution of Seventh Central Pay Commission; Recommendations are Likely to be implemented with effect from 1st January, 2016

The Finance Minister Shri P.Chidambaram in a statement said here today that the Prime Minister has approved the constitution of the Seventh Central Pay Commission.

The fourth, fifth and sixth Central Pay Commissions’ recommendations were implemented as follows:

4th CPC     1.1.1986
5th CPC     1.1.1996
6th CPC     1.1.2006

The average time taken by a Pay Commission to submit its recommendations has been about two years. Accordingly, allowing about two years for the 7th CPC to submit its report, the recommendations are likely to be implemented with effect from 1.1.2016.

The names of the Chairperson and members as well as the terms of reference (ToR) of the 7th Pay Commission will be finalised and announced shortly after consultation with major stakeholders.

*****

DSM/MJPS/KA
(Release ID :99644)

Source: PTI

7CPC: Seventh Pay Commission for central government employees announced

7CPC: Seventh Pay Commission for central government employees announced

The government on Wednesday decided to finally announce the Seventh Pay Commission for central government employees and pensioners.

“Prime Minister Manmohan Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016″, Finance Minister P Chidambaram said in a statement.

The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, comes ahead of the Assembly elections in 5 states in November and the general elections next year.

The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.

As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from January 1, 2016, Chidambaram said.

The sixth Pay Commission was implemented from January 1, 2006, fifth from January 1, 1996 and fourth from January 1, 1986.

The names of the chairperson and members of the 7th Pay Commission and its terms of reference will be finalised shortly after consultation with major stakeholders, Chidambaram said.

Last week, the Union Cabinet had approved a proposal to hike dearness allowance to 90 percent from existing 80 percent.

The increase in DA to 90 percent would result in additional annual expenditure of Rs 10,879 crore.

There would be additional burden of Rs 6,297 crore on exchequer during 2013-14 on account of this hike in DA.
With PTI inputs

Source: Zeenews

http://zeenews.india.com/business/news/economy/seventh-pay-commission-for-central-govt-employees-announced_85279.html

Enhancement of ceiling for calculation of ex-gratia bonus payable to Gramin Dak Sevaks- 2013-14

Enhancement of ceiling for calculation of ex-gratia bonus payable to Gramin Dak Sevaks- 2013-14

The Union Cabinet today approved the proposal of the Department of Posts to enhance the ceiling for calculation of ex-gratia bonus payable to Gramin Dak Sevaks from Rs. 2,500/- to Rs.3,500/- same as that prescribed for the regular departmental employees. The decision would be applicable with prospective effect that is from the accounting year 2012-13 payable in 2013-14.

The increase in bonus calculation ceiling will restore the long established parity between regular departmental employees and Gramin Dak Sevaks on the issue of payment of bonus. This decision will benefit 2.63 lakh Gramin Dak Sevaks working in the Department of Posts, who play a very vital role in providing postal, financial and insurance services in the rural, hilly and tribal areas of the country.

Source-pib

PENSION BILL OR PENSIONLESS BILL?

PENSION BILL OR PENSIONLESS BILL?

Finally the ruling Congress party and the main opposition Party BJP joined together and passed the  Pension Fund Regulatory and Development Authority (PFRDA) Bill in the Parliament. In the year 1982 on 17th December, the Constitution Bench of the Supreme Court consisting of Justice (s) Y. B. Chandrachud, V. D. Tulzapurkar, O. Chinnappa Reddy. D. A. Desai and Bahrul Islam delivered the historic judgment on pension in the D. S. Nakara case, which declared as follows:

“(i) Pension is neither a bounty nor a matter of grace depending upon the sweet will of the employer and it is Fundamental right (ii) Pension is not an ex-gratia payment, but it is payment for past service rendered (iii) 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 lurch.”

After 30 years, the bill passed by Parliament categorically proclaims that the Contributory Pension Scheme introduced w.e.f 01.01.2004 will not give any guarantee for a minimum pension of 50% of the pay drawn at the time of retirement of the employee. Nor does it provide for the protection of the family members in the form of family pension in the event of death. New pension is going to make the social security uncertain and dependent on market forces. Government compulsorily imposed the scheme on one section of the employees in a most discriminatory manner, inspite of the fact that such scheme had been a failure in many countries including Chile, U K and even in USA. In USA the entire pension wealth (fund) has been wiped out leaving no pension due to the economic recession and share market crash. In Argentine the contributory scheme which was introduced at the instance of IMF was replaced with the defined benefit pension scheme. In majority of the countries “pay as you go” is the system of pension.

Government introduced the contributory pension scheme on the specious plea that the out flow on pension had been increasing year by year and is likely to cross the wage bill. In fact, by making the pension contributory, the Government expenditure on this score is not going to get reduced for the next three decades because of the reason that as per the new pension scheme, the Government is to contribute the same amount to the pension fund of each employee coupled with the stipulation that for the existing Central Government Employees who were in service prior to 01.01.2004 Government is duty bound to make payment of statutory pension. The Contribution collected from the employees who are recruited after 01.01.2004 is to be managed by mutual fund operators for investment in stock market and thus it is the vagaries of the stock market which will determine the quantum of pension or in other words annuity which would be cost-indexed and market-oriented.

The decision of the Government to allow FDI in pension fund operations has made the real intention of the PFRDA bill crystal clear. It is now clear that the decision behind the contributory pension scheme is the pressure imposed by imperialist powers and corporate houses and more specifically IMF.

NFPE and Confederation has opposed the new Pension Scheme and the PFRDA Bill from the very beginning and organized series of agitational programmes against it demanding withdrawal of the scheme and the PFRDA bill. We shall continue our opposition and struggle and demand for reversion of the scheme. Let us intensify our struggle against the neo-liberal economic policies of the Government jointly with all those forces which supported our cause inside the Parliament and outside. Let us identify who are our real friends and foes.

Source: http://confederationhq.blogspot.in/
[http://confederationhq.blogspot.in/2013/09/pension-bill-or-pensionless-bill.html]