7th CPC DA : A decade-long journey begins!

7th CPC DA : A decade-long journey begins!

“The Dearness Allowance calculations as per the recommendations of the 6th Central Pay Commission come to an end; the method prescribed by the 7th Central Pay Commission comes into effect from Jan 2016 onward…!”

The 7th Central Pay Commission was appointed in order to evaluate the methods of calculating the salaries, incentives, benefits, pensions, retirement benefits, and Dearness Allowance of the Central Government employees and serving and retired personnel of the Indian defence forces, and suggest changes, if and when required. Four months have passed since the Central Pay Commission submitted its final report to the Centre.

The government at the centre has the discretion to accept, reject, or modify the recommendations made by the Central Pay Commission. It has constituted a high-level committee to look into the various suggestions in the report. The final decision on the implementation of the recommendations will be made based on the feedback from this empowered committee.

Meanwhile, the Central Government employees federations met with the high-level empowered committee to discuss various issues, including Minimum Wages and Fitment Factor, and to suggest required amendments in the report.

There is likely to be a delay in the publication of the notification containing the accepted recommendations by the 7th Pay Commission. Since the election Model Code of Conduct will be in place until the last week of May 2016, the Government acceptance notification is expected to be published in the first week of June. In that case, there are chances that the revised salaries will be issued from the month of June. Also, the arrears for the past five months are also likely to be released then.

Dearness Allowance is one of the much-anticipated topics among Central Government employees. In its report, the 7th Central Pay Commission had given a short explanation about Dearness Allowance.

The 6th Central Pay Commission suggested elaborate changes in the method of calculating Dearness Allowance. This time however, the 7th Central Pay Commission did not suggest any elaborate changes. It has suggested that the same process be continued.

We have presented a ready reckoner of the procedures that were followed when the 5th Central Pay Commission drew to a close and the 6th Central Pay Commission came into effect, which are very likely to be followed this time too.

The AICPIN points of only the month of January are available as of now. The AICPIN points for February will be released tomorrow.

You can come up with approximate AICPIN points for the remaining four months to calculate the approximate Dearness Allowance.

As of January 1, 2016, according to the Centre, the Dearness Allowance stood at 125 percent. An order of the Ministry of Finance to this effect will be released soon. In the event that the 7th Central Pay Commission recommendations come into effect from January 1, 2016 onwards, the salaries of the Central Government employees will be revised by adding 125 percent to their basic pay. The new Dearness Allowance hike will be issued from 01.07.2016 onwards.

For example, if the basic pay of an employee, as on 01.01.2016, is Rs.12,000 (Grade Pay 2800 + 9200), his salary revisions and Dearness Allowance hikes as per the 6th and 7th Central Pay Commission recommendations, are given below.

Employee’s Pay as on 1.1.2016 as per the recommendations of 6th CPC
Basic Pay + 125% DA: 12000 + 15000 = 27000
Employee’s Pay as on 1.1.2016 as per the recommendations of 7th CPC
Basic Pay + No DA: 31000 + 0 = 31000

(No Dearness Allowance for the period between Jan to Jun 2016 and the first instalment of additional DA will be given only on 1.7.2016)

Source: 7thpaycommissionnews.in

Organizational Restructuring of EPFO Approved to Address Career Progression of Over 20000 Officials

Organizational Restructuring of EPFO Approved to Address Career Progression of Over 20000 Officials

Inoperative EPF Accounts that Stopped Earning Interest in 2011, Now to Earn Interest W.E.F. 01.04.2016
Software Module for Disbursal of Salaries to EPFO Launched

EPFO’s highest decision making body, the Central Board of Trustees methere last evening . This was its 212th meeting.The Union Minister for Labour and Employment (Independent Charge) and Chairman CBT, Mr BandaruDattatreya after the conclusion of the meeting said that the Board has taken two important decisions.

The first is in relation to Organisational Restructuring of EPFO. While approving the report in principle, the Board also constituted a Committee to look into the anomalies/gaps pointed out by the Board members. The committee chaired by the Central Provident Fund Commissioner has been asked to submit this report to the Board in a month’s time.

The Second major decision was to allow crediting of interest on inoperative accounts. Accounts of members who do not receive contributions for a continuous period of three years are treated as “Inoperative accounts”. Interest on these accounts was stopped in 2011. The Board decided to resume crediting interest on such accounts w.e.f. 01.04.2016

This is in view of recent amendment to paragraph 69(1) (a) that has been amended to provide for withdrawal of full amount on retirement from service after attaining the age of 58 years.Thus, the employer’s share of contribution in the provident fund account of a member would be withheld by EPFO up to the age of retirement. Hence the decision has been taken, to credit interest as per paragraph 60 of the employees ‘Provident Funds Scheme, 1952. Such an account would not be classified as an “Inoperative Account” for the purpose of paragraph 72(6) of EPFO Scheme, 1952.

The Union minister on the occasion also launched a Software module for disbursal of Salaries to EPFO. The Organisation is bringing IT (Information Technology) enabled systems to manage its Human Resources.

Better Human Resources management would bring further improvement in the service delivery by the offices.
The software will achieve the following objectives: –

– Uniformity in preparation of salary across all offices of Organization.
– Provision of Upload facility for existing data to enable speedy & correct data capture.
– No need to enter data for subsequent months. Only changes are required to be entered.
– Automated TAX calculation.
– Automated Staff Provident Fund and Loan Accounting.
– Provision to make calculation of arrears when required.

PIB

7th Pay Commission Latest News – Don’t think 7th CPC Suggestions will Remain – Parrikar

7th Pay Commission Latest News – Don’t think 7th CPC Suggestions will Remain – Parrikar

“The seventh Pay Commission is in the form of recommendations. I do not think they (recommendations) will remain. I do not consider them as finalities. I have flagged them and will flag them properly at the right level,” said the defence minister.

7th Pay Commission Latest News – Don’t think 7th CPC Suggestions will Remain – “I will not claim that I have turned it around completely but at least something has been done so that deliveries can start. Ground has been prepared. Delivery is now the key word,” said Parrikar.


Defence Minister Manohar Parrikar on Tuesday said the recommendation of 7th Pay Commission was not final and he would take up concerns raised by the Armed Forces at the right level.

In an exclusive interview with the India Today, Parrikar said he has prepared ground for smoothening the defence procurement which needed to be backed by deliveries now.

On the concerns raised by the Armed Forces over the raw deal given to them in the 7th Pay Commission, Parrikar said it was not the final word. “The seventh Pay Commission is in the form of recommendations. I do not think they (recommendations) will remain. I do not consider them as finalities. I have flagged them and will flag them properly at the right level,” said the defence minister.

Parrikar, who inaugurated arms show DefExpo in Goa on Monday where a strong pitch is being made to further expand the growing defence sector, said negative environment surrounding the military acquisitions has changed.

“I will not claim that I have turned it around completely but at least something has been done so that deliveries can start. Ground has been prepared. Delivery is now the key word,” said Parrikar adding that there was an environment of mistrust, suspicion which can be frustrating in dealing with forces.

He said the industry cannot be held responsible for responding slowly to the changing atmosphere. “They have experienced a congested atmosphere and the breeze has only now begun flowing in. However, it cannot happen overnight. Confidence building measures are in place. Industry has begun responding,” he said outlining how smaller changes have been made.

“Offsets have taken off, exports are improving, procurement from local level has gone up. At the capital procurement level, it has not taken off or turned into a big deal because it takes longer. Industry has definitely responded.” Talking about the defence reforms like the appointment of a Chief of Defence Staff, Parrikar said there are no hurdles in bringing defence reforms. “There has to be a rational decision. Drafts are being prepared and shared. Very soon it will be brought to the Cabinet,” he said.

Asked about delay in development of critical equipment like Intermediate Jet Trainers (IJT) for the IAF or submarines for the navy, Parrikar said the air force does not think the IJT is a requirement as it is training on simulators, Basic Trainer Aircraft and Advanced Jet Trainer. “Instead of three, it is a two-level, re-caliberated approach. The proposal for six under-construction Scorpene submarines is moving smoothly. Next project P75, I will tag along with our policy document on Strategic Partnership,” Parrikar said.

“When it will come about? Very soon, but I am not willing to issue a timeline. As far as Arihant, the issue should not be discussed. We are equally concerned and are moving in the right direction,” he said. The three services raised a number of issues, but when the pay commission sought the defence ministry’s comments and recommendation, the ministry negated most of the demands of the services, the officer said.

Source: India Today