7th Pay Commission Pay – Impact of Flat CPI (IW) Aug 2014 to Dec 2014

7th Pay Commission Pay – Impact of Flat CPI (IW) Aug 2014 to Dec 2014

Needless to say, news and developments on 7th Pay Commission are foremost things that draw the attention of Central Government Employees and Pensioners nowadays.

 

As the commission’s regular time frame for submission of report is getting completed in less than 11 months, employees and pensioners hope for either implementation of Revised 7th Pay Commission Pay and Pension in time or grant of DA merged pay with interim relief from 1st January 2016.

Both of these exercises would require a percentage of Dearness Allowance to be merged with pay. So Quantum of DA as on 1st January 2016 gains much significance here.

As of now, Central Government and Railway employees and Defence personnel are in receipt of DA of 107% from July 2014. With all the indices from Jan 2014 to Dec 2014 have been officially released, DA with effect from January 2015 is confirmed to be 113%.

Check this article : 6% DA hike from January 2015

Though increase in DA of 6% from January 2015 appear normal at par with increase in DA previously, additional DA this time was possible only due to higher Consumer Price Indices from Jan 2014 to July 2014.

The index from August 2014 to December 2014 is totally flat and remained at 253 for 5 months thanks to economical factors such as lesser oil prices, good monsoon etc.

As, period from July 2014 to Dec 2014 form the 1st half of the chain of CPI needed to calculate DA from July 2015, this no inflation scenario would definitely impact quantum of DA from July 2015. For example, if CPI (IW) is flat at 253 for two more months (Jan 2015 and Feb 2015) and one or two point increase in the next 4 months (Mar, Apr, May and Jun 2015) would result in DA increase of only 5% from July 2015

DA from Jul 2015	[(252 + 253 + 253 + 253 + 253 +253 +253 + 253 + 254 + 255 + 255 + 255) -115.76]*100/115.76
=	118 % (DA increase of 5% from July 2015)

As far as DA from January 2016 is concerned, the cost of living indices from January 2015 to December 2015 will be the deciding factors. On account of various economical factors such as reduced interest rates etc., CPI (IW) may either be heading south or remain flat during this period, but it is too early to predict those factors now. Any way, it is sure that Consumer Price Index from January 2015 to December 2015 may not experience any steep upward movement. In that case, we can safely assume one point increase in CPI (IW) in alternative months from July 2015 to Dec 2015. This assumption provides increase in DA of only 2% from January 2016, which is worked out as follows

DA from January 2016	[(253 + 253 +254 +255 + 255 + 255 + 256 + 256 + 257 + 257 + 258 + 258) -115.76]*100/115.76
=	120 % (DA increase of 2% from July 2015

Source: gconnect

Railways: Know how the Railway budget will be this year?

Know how the Railway budget will be this year?

Sources Said: The Narendra Modi government’s first full-fledged railway budget to be announced on February 26 could be a muted exercise with no big-ticket announcements of new projects or railway lines, as has been the practice. Rationalisation of passenger fares or freight rates is also unlikely, according to sources.

However, what is likely is a focus on infrastructure creation in the northeast and improving passenger amenities such as introduction of vacuum toilets and dedicated freight services for farmers. The new railway minister, Suresh Prabhakar Prabhu, will lay greater emphasis on early and timely completion of all big existing projects rather than on new announcements.

According to officials who are part of this year’s budget preparations, the minister, who has a reputation for being a doer, might not tinker with fares or freight rates. A committee headed by D K Mittal, former secretary, financial services, has recommended an increase of two-paise per km in passenger fare. “The main thrust will be to increase the share of railways in the overall freight traffic, which is sliding at a fast rate,” said a senior official, who participated in some of the prebudget discussions.

The railway budget will not have announcements of too many new lines or projects – as is done every year based on political considerations – said another senior official from the rail ministry, who did not wish to be named. “These projects become an economic liability on us. So this time, the ministry is not entertaining specific requests for rail lines from members of Parliament (MPs),” he added. The first official said a key focus area in the coming railway budget could be infrastructure creation in north-eastern parts of the country, where a large number of projects are due for completion or about to take off in states such as Meghalaya and Mizoram. Prime Minister Modi had, during a tour to the north-eastern states in December 2014, announced Central funding for new railway lines in the region. “This is the best destination for tourists. But for that we require connectivity. For the development of this area and tourism, Rs 28,000 crore will be provided for a new railwayline project and 14 new railway lines,” he had said. According to officials, the overall thrust of the budget could also be on exploring and listing alternative sources of funding for the Indian Railways as the current traditional sources of non-Budgetary support including Indian Railways Finance Corporation bonds have been found to be inadequate.

The rail ministry has already decided to tap foreign pension funds as part of its resource mobilisation plan to bailout the Railways from its financial woes. “We will invite foreign pension funds to invest in Indian Railways. This could be in the form ofloans at a cheaper rate.

We have to bring in investments both from within and outside the country,” Prabhu had said last month. Prabhu, who took over as railway minister from Sadananda Gowda on November 10, 2014, will present his maiden rail budget in Parliament at a time the transporter is facing cost overruns to the tune of Rs1.11 lakh crore across 288 projects, Rs 30,000 crore annual losses on passenger service that is crosssubsidised with freight resulting into loss of freight market share; rising expenditure on fuel and pay for employees, dip in passenger volumes, slow progress of privatepublic partnership (PPP) projects and a lack of upgradation of infrastructure leading to accidents. Gowda, while presenting the railway budget in July 2014, had not touched fares but promised a turnaround through infusion of private investment and monetising railways ‘ vast land assets. Gowda’s budget also had fewer populist measures than other ministers in the past..

Source: News paper article published in FE

Auction for Sale of Government Stocks

Auction for Sale of Government Stocks

Ministry of Finance

03-February, 2015

The Government of India have announced the Sale (re-issue) of (i) “8.27 per cent Government Stock 2020” for a notified amount of Rs. 2,000 crore (nominal) through price based auction, (ii) “8.15 per cent Government Stock 2026” for a notified amount of Rs.5,000 crore (nominal) through price based auction, (iii) “8.24 per cent Government Stock 2033” for a notified amount of Rs. 3,000 crore (nominal) through price based auction, and (iv) “8.17 per cent Government Stock 2044” for a notified amount of Rs. 3,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India(RBI), Mumbai Office, Fort, Mumbai on February 06, 2015 (Friday).

Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 06, 2015. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

The result of the auctions will be announced on February 06, 2015 and payment by successful bidders will be on February 09, 2015 (Monday).

The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India (RBI) vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.

– PIB

Dearness Relief payable for the period February, 2015 to July 2015

Dearness Relief payable for the period February, 2015 to July 2015 to (a) surviving pre 1.1.1986 retirees of banks (b) surviving spouses of pre 1.1.1986 retirees who are in receipt of Ex-gratia

Indian Banks’ Association

HR & INDUSTRIAL RELATIONS

No.CIR/HR&IR/D/G2/2014-15/1279

31st January 2015

Designated Officers of all Nationalised Banks and Associate Banks of State Bank of India

Dear Sirs,

Dearness Relief payable for the period February, 2015 to July 2015 to (a) surviving pre 1.1.1986 retirees of banks (b) surviving spouses of pre 1.1.1986 retirees who are in receipt of Ex-gratia

As per the directive contained in the Government of India, Ministry of Finance Department of Financial Services (Banking Division) letter F.No.11/2/2012-IR dated 17.12.13, the Dearness Relief payable to surviving pre 1.1.1986 retirees/surviving spouses of pre 1.1.86 retirees of banks for the period February to July 2015 will be as under :

Applicable CPI Average		Amountof Ex-gratia per month	Rate ofAmount of dearness Relief   Dearness Relief per month		Total Ex-gratia amount induding Dearness Relief per month
		Z	%            Z		Z
5774	Pre 1.1.86 retireesSurviving spouses of pre 1.1.86 retirees	350	866.31	3032	3382
		175	866.31	1516	1691

yours faithfully,

sd/-
K S Chauhan
Senior vice President

Source: http://www.iba.org.in/Documents/Cir_12790001.pdf

Dearness Allowance for Workmen and Officer Employees in banks for the months of February, March & April 2015

Dearness Allowance for Workmen and Officer Employees in banks for the months of February, March & April 2015.

Indian Banks’ Association
HR & INDUSTRIAL RELATIONS

No.CIR/HR&IR/76/D/2014-15/1277

31st January, 2015

All Members of the Association
(Designated Officers)

Dear Sirs,
Dearness Allowance for Workmen and Officer Employees in banks for the months of February, March & April 2015. under IX BPS/Joint Note dt. 27.4.10

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base 1960=100) for the quarter ended December 2014 are as follows:-

Oct 2014 – 5774.95
Nov 2014 – 5774.95
Dec 2014 – 5774.95

The average CPI of the above is 5774.95. Consequently, dearness allowance to employees is payable for 734 slabs for the period February, March & April 2015 i.e., an increase of 2 slabs over the Current level.

In terms of clause 7 of the 9th Bipartite Settlement dated 27.04.2010 and clause 3 of the Joint Note dated 27.04.2010, the rate of dearness allowance payable to workmen and officer employees for the months of February, March & April 2015 shall be 110.10% of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

We advise banks to pay the difference between the old and revised salary and allowances to officers on an ad hoc basis, pending amendments to Officers’ Service Regulations.

Yours faithfully,

Sd/-

K S Chauhan
Senior Vice President

Source: http://www.iba.org.in/Documents/Cir_12770001.pdf

TAMILNADU CONFEDERATION PROTEST DAY MEETING HELD ON 28.01.2015

TAMILNADU CONFEDERATION PROTEST DAY MEETING HELD ON 28.01.2015

A special meeting of TN Confederation was conducted at the meeting hall of Shastri Bhavan on 28.1.2015 by 01.00 PM.

Protest day was observed condemning the administration of Kalpakkam Atomic Power Plant for unleashing Trade Union victimisation against the office bearers for organising the two days nationwide strike during Feb.12,13.02.2014 announced by Confederation.

A resolution was passed unanimously for immediate withdrawal of disc. action taken against the office bearers of the kalpakkam Atomic Energy Employees’ Assn. and to reinstate the suspended office bearers This was sent to the authorities of the Kalpakkam Atomic Power Plant.

Further, 5th Memorial day was observed on the demise of com. Jayaseelan, the then General Secretary of COC, Shastri Bhavan.Com. J. Ramamurthy, President of the State Unit presided the meeting and delivered presidential address.

Com. S. Samraj, G.S., COC, Shastri Bhavan made reception address. Com. S. Sundaramurthy Treasurer of the State Unit made inagural address. Com. Duraipandian, General Secretary delivered memorial address.
Com. A. Soundararajan, President, State unit of the CITU has made special address on “Hire and Fire” and elaborated the mass retrenchment in Nokia, Hundai, IBM, TCS, deliberated against the privatisation policies of the Modi Sarkar. He made call to organise the working class against the anti labour, anti people policies of the Central Government.

Com. Elangovan delivered vote of thanks. Hundreds of CG employees attended the meeting in full mass.

Source: Confederation

DA for Bank Employees – Circular issued by IBA

DA for Bank Employees – Circular issued by IBA

IBA issued circulars regarding increasing the Dearness allowance for bank employees from February to April 2015 and Dearness relief for bank pensioners from Feb to July 2015

Click here to download the IBA circular of DA for employees
Click here to download the IBA circular of DR for pensioners.
Click here to download the IBA circular of DR for pre 01.01.1986 retirees