25% Hike in Allowances – Confederation writes to Dopt to issue necessary orders

25% Hike in Allowances – Confederation writes to Dopt to issue necessary orders

 

Confederation Secretary General writes to the Secretary of Department of Personnel & Training to issue appropriate orders on hike in certain allowances by 25% as a result of Dearness allowance to 100% with effect from 1.1.2014.

 

Confederation’s Letter demanding Increase in certain allowances by 25% as a result of enhancement of Dearness Allowance to 100% w.e.f. 01.01.2014

 

CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS

1st Floor, North Avenue PO Building, New Delhi – 110001 

Website: www.confederationhq.blogspot.com 

Email: confederationhq@gmail.com 

 

Patron S. K. Vyas  09868244035

President K. K. N. Kutty  09811048303

Secretary General M. Krishnan 09447068125

 

Ref: Confd/GENL/2014

Dated-14.04.2014

To

The Secretary,

Department of Personnel & Training,

Government of India,

North Block, New Delhi – 110001

 

Sir,

Sub: – Increase in certain allowances by 25% as a result of enhancement of Dearness Allowance to 100% w.e.f. 01.01.2014 – reg.

 

Vide MOF OM No. 1/1/2014-EBII (B) dated 27th 100% w.e.f. 01.01.2014. As recommended by the 6th following allowance and advances require enhancement of 25% from its present state as done when the DA crossed 50% in 01.01.2011.

1. Children Education Assistance & Reimbursement of Tuition Fee

2. Advances for purchase of Bicycle Advance, Warm clothing Advance, Festival Advance, Natural Calamity Advance

3. Special Compensatory Hill Area Allowance

4. Special Compensatory Scheduled / Tribal Area Allowance

5. Project Allowance

6. Speical Compensatory (Remote Locality) Allowance

7. Cycle Maintenance Allowance

8. Mileage for road journey all components of daily allowance on tour

9. Rates of Fixed Conveyance Allowance under SR-25 (Motor Car)

10. Rates of Fixed Conveyance Allowance under SR-25 (Other modes)

11. Washing Allowance

12. Split Duty Allowance

13. Spl. Allowance for Child Care for Women with Disabilities and Education Allowance for disabled children

14. Cash Handling Allowance

15. Risk Allowance

16. Postgraduate Allowance

17. Desk Allowance

18. Bad Climate Allowance

Therefore it is requested to cause orders for the enhancement of 25% of the above allowances/advances w.e.f 01.01.2014 at the earliest.

 

A line in reply is much appreciated.

Yours faithfully, 

(M. Krishnan) 

Secretary General, Confederation 

Member, JCM National Council

EXPECTED DEARNESS ALLOWANCE FROM JULY 2014- An overview of articles about DEARNESS ALLOWANCE

EXPECTED DEARNESS ALLOWANCE FROM JULY 2014

An overview of articles about DEARNESS ALLOWANCE

It is an appreciable trend that articles about Dearness Allowances continue to be churned each day. There are plenty of advantages and benefits in giving your own interpretation on a topic that millions are interested in. It helps a great deal in creating consensus opinion. Social media are especially useful in accomplishing this.
A very famous example is the unity and camaraderie between pharmacists a few years ago, and their success. The contribution of social media in the current protests being conducted by LDCs and UDCs is worth taking note of.

There is no denial to the fact that revolutionary new opinions expressed on social media have been useful for many in many different ways. There is also no doubt in the fact that members of the unions, associations, and federations continue to watch the social media. You can bet that in the near future almost all these leaders of unions and associations would have created their own individual websites and started expressing their opinions almost immediately.

Let us get to the topic at hand…

The Consumer Price Index for Industrial Workers points for last month was released on 31.03.2014. The index has risen by one point and stands at 238. As a result, the Dearness Allowance, which stood at 101.71 has now slightly increased to 102.79.

With the AICPIN data of only two months available, it has become clear that there is not even an increase of 3%. If the trend continues, the hike in DA would be very small this time. Though nothing can be speculated as of now, if the AICPIN doesn’t reduce, then there are chances of a 5% DA increase. If AICPIN points slump by bigger margins, there are chances that the DA percentage would decrease further.

To sum it up, this time, there is no possibility of getting the kind of DA hikes that were given in the past. But then, since we still don’t have the data for four months, it is difficult to accurately calculate.
‘Expected DA from July 2014’ completed its second step..!

Source: http://90paisa.blogspot.in
[http://90paisa.blogspot.in/2014/04/expected-da-from-july-2014-overview-of.html]

Did you know how the 6th CPC Multiplication Factor of 1.86 was derived?

Did you know how the 6th CPC Multiplication Factor of 1.86 was derived?

The 6th Pay Commission had recommended a Multiplication Factor of 1.74, but the Central Government chose to change it to 1.86. One of the reasons for this modification was the intense pressure from various Federations of Central Government Employees. It has to be mentioned at this point that all the federations had presented demands to the Government to raise the minimum basic pay to Rs. 10,000.
Exactly how did the Government arrive at 1.86? Here is an explanation how -

Let us assume the Basic Pay, as of 01.01.2006, as 100%. Let’s take the Dearness pay (post the 50% DA Merger) as 50%. Let us also take into account the 24% Dearness Allowance that was given before 01.01.2006.
If you add Basic Pay and Dearness Pay and calculate 24% of it, then you’d get 36%. (100 + 50 = 150 / 24 x 100 = 36)
100% + 50% + 36% = 186%
This number is being taken for calculations as 1.86.

At the time of 6th CPC Pay Fixation, the last drawn Basic Pay under 5th CPC was multiplied by 1.86 and rounded off. It was also explained that a new entity named Grade Pay was created and a sum total of this was the new Basic Pay.

Hence, it was impossible to consider 1.86 as the true yardstick. For example, for a basic pay of Rs. 3050…
3050 x 1.86 = 5680 (After rounded off)
Corresponding Grade Pay for 3050 is 1900,
Band Pay 5680 + Grade Pay 1900 = Basic Pay 7580
5th CPC basic pay = 3050
6th CPC basic pay = 7580
The multiplication factor number comes to 2.48.

It is not possible to take 2.48 as common for all basic pays. But, 2.48 was considered very low. That’s why we have used a bigger number to calculate in the 7th CPC’s Expected Pay Scale.

Source:  http://90paisa.blogspot.in
[http://90paisa.blogspot.in/2014/04/did-you-know-how-6th-cpc-multiplication.html]

Estimated 7th Pay Commission pay scales as on 01.01.2016

Estimated 7th Pay Commission pay scales as on 01.01.2016- view of gconnect

Even as the 7th Pay Commission was constituted recently by Government for revision of Pay and allowances of Central Government Employees, Railway Employees and Defence Personnels, wide spread speculations on projected 7th Pay Commission pay scales are already going on. Blogs that provide Central Government Employees news and information have already started estimating possible 7th CPC pay scales based on different ideas.

GConnect.in was the first site that launched 6th Pay Commission Pay, Pension and arrears Calculator which received atmost popularity among Central Government Employees and CG Pensioners.

In respect of revised Pay and allowances of 7th Pay Commission also GConnect would come up with similar pay and pension calculators.

As a precursor, we thought of estimating 7th Pay Commission pay bands and grade pays based on the same methods adopted by Govt for determining 6th CPC revised pay Scales from the pre-revised (5th CPC) pay scales

Before estimation of 7th CPC Pay Scales let us have a look at the 6th CPC Pay Bands and Grade Pay Structure

6th CPC revised Pay Band, Grade Pay, Starting Pay in PB and Entry Pay

Pre RevisedPay Scale	PB	6 CPCPay Band	GradePay	StartingPay	Entry PayNew Recruits
S-1, S-2	PB-1	5200-20200	1800	5200	7000
S-3	PB-1	5200-20200	1800	5360
S4	PB-1	5200-20200	1800	5530
S-5	PB-1	5200-20200	1900	5880	7730
S-6	PB-1	5200-20200	2000	6060	8460
S-7	PB-1	5200-20200	2400	7440	9910
S-8	PB-1	5200-20200	2800	8370	11360
S-9	PB-2	9300-34800	4200	9300	13500
S-10	PB-2	9300-34800	4200	10230
S-11	PB-2	9300-34800	4200	12090
S-12	PB-2	9300-34800	4200	12090
S-13	PB-2	9300-34800	4600	13860	17140
S-14	PB-2	9300-34800	4800	13950	18150
S-15	PB-2	9300-34800	5400	14880
New	PB-3	15600-39100	5400	15600	21000
S-16	PB-3	15600-39100	5400	16740
S-17	PB-3	15600-39100	5400	16740
S-18	PB-3	15600-39100	6600	19210	25350
S-19	PB-3	15600-39100	6600	18600
S-20	PB-3	15600-39100	6600	19810
S-21	PB-3	15600-39100	7600	22320	29500
S-22	PB-3	15600-39100	7600	23720
S-23	PB-3	15600-39100	7600	22320
S-24	PB-4	37400-67000	8700	37400	46100
S-25	PB-4	37400-67000	8700	39690
S-26	PB-4	37400-67000	8900	39690	49100
S-27	PB-4	37400-67000	8900	39690
S-28	PB-4	37400-67000	10000	37400	53000
S-29	PB-4	37400-67000	10000	44700
S-30	PB-4	37400-67000	12000	51850	59100
S-31	HAG	75500-80000	75500		–
S-32	HAG	75500-80000	75500		–
S-33	Apex	80000 (fixed)	–		–
S-34	Apex	90000 (fixed)	–		–

Multiplication Factor of 1.86 adopted to for revision of Pay on implementation of 6th CPC :

While implementing 6th Pay Commission Government decided to adopt a multiplication factor of 1.86 for most of the pre-revised pay Scales to determine the revised pay in band of an employee

The 6th CPC revised pay in pay band of an employee was determined by multiplying the pre-revised basic pay drawn as on 01.01.2006 with 1.86 ( Of course, some of the pre-revised pay scales at higher level was revised by multiplying a factor more than 1.86).

This multiplying factor 1.86 was arrived at by taking in to account following components of pre-revised pay received by an employee prior to 01.01.2006.

Component	Multifplication Factor
Component A – Pre-revised Basic Pay	1
Component B – Dearness Pay (50% of pre-revised Basic Pay)	0.50
Component C – 24% Dearness Allowance on pre-revised basic pay and D.P prior to 01.01.2006	0.36 (24% on factors 1+0.5 taken for B.P and D.P)
Total Multiplication Factor	1.86

Estimation of Multiplication Factor to determine 7th Pay Commission revised Pay Scales and initial pay in pay band for each pay band :

By Adopting the same method followed by the Government to decide 6th CPC multiplication factor, the following Multiplication Factor has been arrived at for determing 7th Pay Commission revised Pay Scales and initial pay in pay band for each pay band as on 01.01.2016

Component	Multiplication Factor
Component A and B – Pay in pay band and Grade Pay as on 01.01.2016	1
Component C – 124 % Dearness Allowance on Pay in pay band and Grade Pay (** See the Note Below)	1.24
Total Multiplication Factor	2.24

** Note : DA as on 1st January 2014 is 100%. So DA as on 1st January 2016 has been conservatively estimated to be 124 % (6% increase for each 6 months period)

Estimation of 7th Pay Commission Grade Pay Structure

As we all know, there was no uniform correlation between Grade Pay and Pay in Pay band in the 6th CPC Pay Band Structure. So the ratio between the present grade pay and starting pay in the pay band of particular grade pay group was taken as the factor to estimate the 7th CPC grade pay.

For example Ratio of 6th CPC Grade pay of Rs. 8700 to starting pay (Rs.37400) in that grade pay group is 0.2327. This factor is multiplied with 7th CPC starting pay (Rs.83780) to get the equivalent 7th CPC grade pay of Rs.19500. Wherever this factor exceeded 0.35, the same was fixed as 0.35.

7th Pay Commission projected Pay Scale – Revised Pay Bands, Grade Pay, Starting Pay in PB and Entry Pay

Pre Revised Pay Scale	PB	6 CPC Pay bands	Grade Pay	7th CPC Pay Band	7th CPC Grade Pay	@ Starting Pay	@@ Entry Pay
S-1, S-2,	1	5200-20200	1800	11650-45250	4100	11650	15680
S-3	1	5200-20200	1800	11650-45250	4100	12010
S4	1	5200-20200	1800	11650-45250	4100	12390
S-5	1	5200-20200	1900	11650-45250	4300	13180	17320
S-6	1	5200-20200	2000	11650-45250	4500	13580	18960
S-7	1	5200-20200	2400	11650-45250	5900	16670	22200
S-8	1	5200-20200	2800	11650-45250	6100	18750	25500
S-9	2	9300-34800	4200	20840-77960	7300	20840	30240
S-10	2	9300-34800	4200	20840-77960	7300	22920
S-11	2	9300-34800	4200	20840-77960	7300	27090
S-12	2	9300-34800	4200	20840-77960	7300	27090	30240
S-13	2	9300-34800	4600	20840-77960	10400	31050	38400
S-14	2	9300-34800	4800	20840-77960	10400	31250	40700
S-15	2	9300-34800	5400	20840-77960	10800	33340
New	3	15600-39100	5400	34950-87590	10800	34950	47040
S-16	3	15600-39100	5400	34950-87590	10800	37500
S-17	3	15600-39100	5400	34950-87590	10800	37500
S-18	3	15600-39100	6600	34950-87590	14800	43040	56800
S-19	3	15600-39100	6600	34950-87590	14800	41670
S-20	3	15600-39100	6600	34950-87590	14800	44380
S-21	3	15600-39100	7600	34950-87590	17100	50000	66080
S-22	3	15600-39100	7600	34950-87590	17100	53140
S-23	3	15600-39100	7600	34950-87590	17500	50000
S-24	4	37400-67000	8700	83780-150080	19500	83780	103270
S-25	4	37400-67000	8700	83780-150080	19500	88910
S-26	4	37400-67000	8900	83780-150080	20000	88910	109990
S-27	4	37400-67000	8900	83780-150080	20000	88910
S-28	4	37400-67000	10000	83780-150080	22500	83780	118720
S-29	4	37400-67000	10000	83780-150080	22500	100130
S-30	4	37400-67000	12000	83780-150080	26900	116150	132390

@ Starting Pay is the 7th CPC starting pay in a pay band against a pre-revised Scale

@@ Entry Pay is the pay in pay band applicable to New Recruits.

The above table provides an idea on estimated 7th CPC Pay Band, Grade Pay and starting pay for each grade pay group. We have planned to launch an online tool to estimate 7th CPC pay in pay band and grade for a given 6th CPC pay in pay Band and grade pay. It will be released soon. Keep watching this site for this online tool.

Disclaimer: The above 7th CPC projected Pay bands, grade pay and starting pay are merely an estimation. The Actual 7th Pay Commission Pay Band, Grade Pay etc will be known only after implements the 7th Pay Commission’s recommendations. The pay structure given above may totally change based on various factors taken in to account by 7th Pay Commission to review the pay and allowances of Central Government Employees, Railway Employees and Defence personnels.

The following Government Orders relating to implementation of 6th Pay commission report have been referred to for the estimation of above mentioned 7th pay commission projected pay bands

Source-http://www.gconnect.in/orders-in-brief/7thcpc/estimated-7th-pay-commission-pay-scales-01-01-2016.html