Friday, September 30, 2016

Payment of Productivity Linked Bonus to all eligible non-gazetted Railway employees for the financial year (2015 to 2016)

Payment of Productivity Linked Bonus (2015 to 2016) : Railway Board Order

Railway Bonus Order


GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD )
RBE No. 114 /2016.
No. E(P&A)II-2016/PLB-9
New Delhi, dated : 28.09.2016.
The General Managers/CAOs,
All Indian Railways & Production Units etc.

Subject : Payment of Productivity Linked Bonus to all eligible non-gazetted Railway employees for the financial year (2015 to 2016).

The President is pleased to sanction Productivity Linked Bonus (PLB) equivalent to 78 (Seventy Eight) days wages without any ceiling on wages for eligibility for the financial year 2015 to 16 to all eligible non-gazetted Railway employees (excluding all RPF/RPSF personnel). Where wages exceed 7000/- per month, Productivity Linked Bonus will be calculated as if  wages are 7000/- p.m.

2. Wages for the purpose of calculating Productivity Linked Bonus shall include Basic pay as defined in the Railway Services (Revised Pay) Rules, 2008 and dearness allowance drawn during the period from 01.04.2015 to 31.12.2015. Wages during the period from 01.01.2016 to 31.03.2016 shall include Basic pay as defined in the Railway Services (Revised Pay) Rules, 2016. Other conditions of eligibility, method of calculation of wages, etc., as prescribed in this Ministry's instructions and clarifications issued from time to time, shall remain unchanged.

3. It has also been decided that in the case of eligible employees mentioned in Para 1 above who were not placed under suspension, or had not quit service/retired/expired during the financial year 2015-16 or were on leave where leave salary admissible is not less than that admissible on leave on average pay, may be paid an amount of 17,951/- towards Productivity Linked Bonus for the financial year 2015 to 16. In the case of employees other than those mentioned above, the amount of Productivity Linked Bonus may he calculated in accordance with the extant instructions on the subject.

4. Further, in relaxation to the provisions in Rules 905(2), 908 and 909 of State Railway Provident Fund Rules, as contained in Chapter 9 of R-1/1985 edition (2003 Reprint edition), such of the subscribers to the SRPF as are entitled to Productivity Linked Bonus may, if they so desire, deposit the whole or part of the amount admissible under the Scheme in their respective State Railway Provident Fund Accounts.

5. Disbursement of Productivity Linked Bonus for the financial year 2015 to 16 to all eligible non gazetted Railway employees mentioned in Para 1 above should be made on priority in the same mode as payment of salary before the ensuing Puja/Dussehra holidays.

6. This issues with the concurrence of Finance Directorate of the Ministry of Railways.

(Salim Md. Ahmed)
Dy. Director / Estt. (P&A)II
Railway Board.
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7th CPC Pay Fixation and Grant of Increment in revised pay structure : Finmin issued clarification orders on 29.9.2016


7th CPC Pay Fixation and Grant of Increment in revised pay structure : Finmin issued clarification orders on 29.9.2016

7th CPC Pay Fixation and Grant of Increment in revised pay structure


Fixation of pay and grant of increment in the revised pay structure : clarifications : regarding.
No.1-6/2016-IC(Pt.)
Government of India
Department of Expenditure
Implementation Cell
Room No.214, The Ashok, New Delhi
Dated the 29th September, 2016
OFFICE MEMORANDUM
Subject: Fixation of pay and grant of increment in the revised pay structure : clarifications : regarding.

Following the notification of Central Civil Services (Revised Pay) Rules, 2015, this Department has received references seeking clarifications regarding various aspects of fixation of pay in the revised pay structure as also pay fixation and grant of increment in future under revised pay structure. The matter has been considered in this Department and the points of doubts are clarified as under:

1. Point of doubt: As per the provisions of FR22 (l) (a) (1), the Government servants (other than those appointed on deputation to ex-cadre post or ad hoc basis or on direct recruitment basis) have the option, to be exercised within one month from the date of promotion, to have the pay fixed under this rule from the date of such promotion/ appointment or from the date of next increment.

Some of the employees, promoted between 01.01.2016 and the date of notification of CCS (RP) Rules, 2016 had opted for their pay fixation on promotion/financial up-gradation under MACPS from the date of their next increment in the lower grade. Consequent upon notification of CCS (RP) Rules, 2016 i.e. 25th July, 2016, the option submitted by such employees has now turned out to be disadvantageous. Whether such employee may be allowed to revise their option under FR 22 at this stage.

Clarification: Under the changed circumstances after notification of CCS (RP) Rules, 2016, the employee may be allowed to exercise revised option for fixation of pay under FR22(l)(a)(1), Such revised option shall be exercised within one month of issue of this 0M. Option so revised, shall be final.

2. Point of doubt: Whether employees appointed/promoted/ during granted financial up-gradation 02.01.2015 and 01.07.2015 will be entitled to grant of one increment on 01.01.2016,.

Clarification: Since the provisions of CCS  (RP)Rules, 2016 are effective  from 01.01.2016, no increment shall be allowed on 01.01.2016 at the time of fixation of pay in the revised pay structure.

sd/-
(R.K.Chaturvedi)
Joint Secretary to the Govt. of India
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Authority: www.finmin.nic.in

Appointment of IAS Officers as Assistant Secretary in the Central Secretariat for a period of three months: Terms and conditions of appointment: Fixation of pay

Appointment of IAS Officers as Assistant Secretary in the Central Secretariat for a period of three months : Terms and conditions of appointment : Fixation of pay

F. No. 21/4/2016-CS.I(P)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
2nd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi 11 0003
Dated September 29, 2016
OFFICE MEMORANDUM

Subject: Appointment of IAS Officers as Assistant Secretary in the Central Secretariat for a period of three months : Terms and conditions of appointment : Fixation of pay : regarding

The undersigned is directed to refer to this Department's OM No. 21/04/2016-CS.I (P) dated 15.06.2016 on the subject mentioned above.

2. Consequent upon the acceptance of recommendations of Seventh Central Pay Commission by the Government of India, the pay of the Assistant Secretaries is required to be fixed as per the IAS (Pay) Rules, 2016. Ministries/ Departments concerned are accordingly requested to fix the pay of the Assistant Secretaries as per the IAS(Pay) Rules, 2016.

3. In so far as payment of arrears of revised pay from 01.01.2016, is concerned, it is clarified that the payment of arrears to such Assistant Secretaries for their tenure in the Central Secretariat will be made by the union Ministries/Department concerned where they are presently posted on Central Deputation. Arrears for the period prior to the appointment as Assistant Secretary will be paid by the respective State Governments.
4. This issues with the concurrence of the Department of Expenditure  dated 26.09.2016.
(Raju Saraswat)
Under Secretary to the Government of India
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Re employed Ex Servicemen (Rank below commissioned officers) Pay Fixation : Confederation

Re employed Ex Servicemen (Rank below commissioned officers) Pay Fixation :  Confederation

Ex Service men Pay Fixation : Confederation writes to Hon'ble Minister of State, Ministry of Personnel, Public Grievances and Pension

Ref: CONF/GENL/Ex service men/2016 19
Dated : 28.09.2016

To,
Dr. Jitendra Singh
Hon'ble Minister of State Ministry of Personnel, Public Grievances and Pension
102, North Block
New Delhi : 110001

Respected Sir,
Sub : Ex Service men pay fixation : intervention requested.

1. It is submitted that pay fixation of re employed Ex Service men who held rank below commissioned officer/Group A at the time of their retirement is not carried out in many departments (Eg; Postal department) as per Government orders issued from time due to misinterpretation/wrong classification by the administrative authorities. The re employed Ex Servicemen are being deprived of their due by the controlling authorities.

2. Department of Personnel & Training under Ministry of Personnel, Public Grievances and Pension is the nodal authority in the subject matter. Presently CCS (Fixation of Pay of re employed Pensioners) orders 1986, amended from time to time, which act as the basic guideline, is required to be amended to bring clarity and parity for whole class of Ex servicemen. The pay of the re employed Ex Commissioned officers/Group 'A' is fixed at a higher stage due to their past service benefit but in the case of re employed Ex Servicemen who held rank below commissioned officers, their pay is fixed at minimum of pay scale of re employed post which is denial of natural justice and violation of fundamental rights, particularly right to equality, enshrined in our constitution, as discrimination arises out of such partial provisions. The provision contained in pay fixation basically are welfare measure to support the class of Ex Servicemen as a whole. However, this discrimination in pay fixation had added to their woes.

3. Detailed statement of case for regularization/streamlining of pay fixation of re employed Ex Servicemen are enclosed herewith for your kind consideration and issue of necessary guidelines in favour of veteran Warries of our country who sacrificed their vital years for India and still engaged themselves in nation building.

STATEMENT OF CASE FOR REGULARISATION OF PAY FIXATION OF RE EMPLOYED EX SERVICEMEN (PERSONNEL BELOW OFFICER RANK) IN CENTRAL GOVERNMENT DEPARTMENTS/ MINISTRIES
INTRODUCTION

Government of India provides reemployment opportunities to Ex Servicemen Officers/Other Ranks of Indian Armed Forces in various Departments/Ministries, Public Sector Organizations & Autonomous Bodies as a rehabilitation measure due to their compulsory retirement at early age to keep the forces young. According to CCS (Fixation of Pay of reemployed Pensioners) Orders 1986 amended from time to time by DOP&T the Reemployed Officers are allowed to draw a higher stage of initial pay in consideration with their pre retirement pay on reemployment in such Government organizations. In case of other ranks/PBOR (Jawans/NCOs/JCOs) the Government departments and Ministries have allowed to draw only minimum/entry pay of re employed post as applicable to fresh recruit. Public Sector organizations viz., Nationalised Banks, LIC, NIC and other PSUs have allowed to draw the higher stage of initial pay (at the stage of pre retirement pay) to reemployed ex servicemen (Jawans/JCOs/NCOs) as mentioned above.

DETAILED JUSTIFICATION OF THE CASE

Department of Posts and some other departments has not agreed to allow the higher initial pay on re employment in consideration with pre retirement pay to re employed ex servicemen belonging to below officer rank of the Armed Forces. Most of the Ex servicemen belong to PBOR category retired (discharged) from service at the age of 35 : 40 years to keep the forces young. To ensure the minimum survival support earning, Government of India introduced a higher stage of pay in several manners to the reemployed ex servicemen from time to time. According to Dept of P&T OM No 3/1/86 Estt (P II) dated 31 July 1986 the earlier orders relating to fixation of pay of reemployed pensioners was scattered in a number of OM issued by Ministry of finance from time to time. Dept. of P&T consolidated all these orders and issued fresh guidelines in a single order viz., CCS (Fixation of pay of re employed pensioners) Order 1986. The pay fixation procedure mentioned in such earlier

OMs (Prior to 1986) issued by Ministry of Finance as under :

1) According to Ministry of Finance, Dept of Expenditure OM No 8(34) Estt III/57 dated 25 Nov 1958 pay of the re employed pensioners will be fixed at the minimum of pay scale of the re employed post. In cases where it is felt that fixation of pay of re employed officers at the minimum of pay scale will cause undue hardship the pay may be fixed at a higher stage by allowing one increment for each year of service the officer has rendered before retirement in a post not lower than that he reemployed. In other words, if the amount of pay plus pension is less than the last pay drawn before retirement from previous service, it will be treated as undue hardship.

2) In case of reemployed pensioner who retired before attaining the age of 55 years, Rs 125/ was ignored from the pension for the purpose of pay fixation vide Ministry of finance OM No F.4(3)E III/82 dated 13 December 1978.

3) According to Ministry of Finance OM No F.4(3) E.III/82 dated 13 Dec 1983 the entire pension of the reemployed pensioners who held below Group A post/ Commissioned officer rank and retired before attaining the age of 55 years will be ignored for the purpose of pay fixation. In this regard Para 4(d) (i) of CCS (Fixation of pay or reemployed pensioners) order 1986, amended from time to time may be referred.
Hence in the cases where pay plus Non Ignorable Portion of Pension is less than last pay drawn (LPD) before retirement, it will be treated as undue hardship. In case of Ex : Personnel below Commissioned officer /Group 'A' Officer Rank, the non ignorable part of pension is zero. So it may be described such a manner that, if the pay of re employed post is less than last pay drawn in such cases advance increments will be granted as instructions given in Ministry of Finance OM dated 25 November 1958. Hence the pay of re employed ex servicemen (Jawans/JCOs) will be fixed at higher stage.

4) Now the provisions of CCS (Fixation of pay of reemployed pensioners) Order 1986, and its application is as under: :

(i) In case of Reemployed officers who held Group A/Commissioned Officer Rank before retirement: : According to Para 4(d)(ii) such re employed officer who retired before attaining the age of 55 Years, first Rs 4000/ of his pension only will be ignored for the purpose of pay fixation. According to Para 4(b) (ii) Pay of such re employed officers will be fixed at the same stage as last pay drawn before retirement as a part of pension is only ignored for the purpose of pay fixation and remaining part of pension will be deducted from pay so fixed at the last pay drawn. As a result, pay of such officer is fixed at much higher than the minimum pay of re employed post. Illustration as mentioned below:

Colonel A Retired at the age of 54 Years and re employed as Section Officer [Gp A Gazetted post in the pay scale of (Rs 15600 (BP) + Rs 5400 (Grade Pay)] His other details are as under :

Initial pay of reemployed post = Rs 15600 + Rs 5400 = Rs 21000
Last pay drawn in previous service = Rs 54000 (BP) + Rs 8700 (GP) + Rs 6000 (MSP)
Total pay last drawn = Rs 68700/
Pensioned sanctioned = Rs 34350/ pm

Pay fixation on his re employment: :
Step : I : Determination of last pay drawn = Rs 68700
Step : II : Determination of non ignorable = Rs 34350 : Rs 4000 = Rs 30350 part of his pension
Step : III : Deduction of non ignorable = Rs 68700 : Rs 30350 = Rs 38350 Part of pension from

Last Pay Drawn
Step : IV : Fixation of Initial pay = Rs 38350
(In addition to pay so fixed above, he shall be permitted to draw, separately any pension sanctioned to him and to retain any other form of retirement benefit. As explained in para 4(C) of CCS (RP) rules, 2008 vide OM 3/19/2009 dated 5th April 2010.)

From above it is notable that the minimum pay of the re employed post is Rs 21,000/ and the pay fixed at Rs 38350/ hence the pay has been fixed at the higher stage due to consideration of his pre retirement pay. It is justified as the pay of an experienced person can never be equal to a fresh recruit, but the same justification should be considered for reemployed Ex Non Commissioned officer cadre (JCOs/Jawans) also.

In case of Reemployed Ex servicemen who held rank below Group A/Commissioned Officer Rank before retirement and retired before attaining the age of 55 years: : According to Para 4(d) (i) such re employed ex servicemen who retired before attaining the age of 55 Years his entire pension will be ignored for the purpose of pay fixation.

According to Para 4(b) (i) Pay of such re employed ex servicemen will be fixed at the minimum of pay scale of reemployed post. Pre retirement pay will not be considered for his pay fixation. Treatment of undue hardship caused due to fixation of minimum pay is neglected here.

Illustration as mentioned below: :
Sepoy ABC (MACP I) Retired at the age of 36 Years and reemployed as Social Security Assistant in the pay scale of Rs 5830 (BP) + Rs 2400 (GP) Initial pay of reemployed post = Rs 5830 + Rs 2400 = Rs 8230

His other details are as under: :
Last pay drawn = Rs 9550 (BP) + Rs 2400 (GP) + Rs 2000 (MSP) + Rs 300 (Class pay)
Total pay last drawn = Rs 14250/
Pension sanctioned = Rs 7125/ pm

Pay fixation on his re employment: 

Step I Determination of Initial pay of re employed post = Rs 8230
Step II Fixation of Initial pay on re employment = Rs 8230

From above it is notable that the re employed ex servicemen is allowed to draw only minimum pay of reemployed post which is Rs 8200/ much less than his last pay drawn Rs14250/ before retirement, hence the undue hardship arises as his pre retirement pay has been neglected. The gap will widen in case we take example of Nb Subedar of Army or a Sergeant of Air force who gets X pay additionally.

From the illustration (i) and (ii) it is revealed that the CCS (Fixation of pay of reemployed pensioners) Order 1986 is not a consolidation of provisions of OM issued by Ministry of finance rather it is an order issued by Government of India which intended to give benefit to Ex Commissioned officers and deprive the Ex servicemen (PBOR). This Order was formulated to serve the interests of Ex Group 'A' Officers/Commissioned Officer category only and discriminated against the PBOR/Other Ranks in terms of Right to equality enshrined in our Constitution of India. The service conditions were equally harsher to whole class of ex servicemen including all ranks of Armed Forces; in fact more harsh if service privileges and promotions are to be considered separately.

5. In addition to above, according to Para 2 of DOPT OM No 3/13/2008/Estt/Pay II dated 11 Nov 2008 it is clear that the pay of re employed ex servicemen will be fixed according to rule 7 of CCS RP Rules 2008 with adherence to CCS (Fixation of pay of reemployed pensioners) Rules 1986 amended from time to time. The term minimum pay refers here the pay last drawn by the reemployed ex servicemen before retirement (substantive pay) and the pay should be fixed in the pay structure of re employed post i.e. the grade pay of re employed post only admissible in such case. Total pay should be equal to the last pay drawn by the pensioner. In this regard your attention is also invited to para 3(v) of DOPT OM No 3/19/2009 Estt (Pay II) dated 05 April 2010 where it is clearly instructed that the pay of re employed personnel/officers will be fixed at the same stage as last pay drawn. In this regard Verdict of Honourable Supreme Court dt 08.11.1996 in the case of Director General of India Posts Vs B Ravindran may be referred.

6. Pay of Re Employed Officers is fixed at higher stage due to formula applied as prescribed in the CCS (Fixation of pay of re employed pensioners) Order 1986. Whereas the interest of personnel below officer rank was totally neglected and their pay is fixed at the minimum of pay scale only which is contrary to natural injustice and violation of Right to equality enshrined in the Constitution of India as discrimination arises.

7. Public Sector Banks, LIC, NIC and PSUs are still allowed the higher stage of initial pay to Ex PBOR with reference to the Government orders (DOP&T OM dated 05.04.2010). Circular of Indian Banks Association in this regard may be referred to. Due to misinterpretation/ambiguous language of Government orders issued on the subject matter, Central Government departments does not agree to re fix the pay of re employed ex servicemen (PBOR) category as mentioned in para 4 above. The re employed Ex serviceman belonging to PBOR category, are allowed to get their pay fixed only at the minimum/entry pay of re employed post which is illogical and unlawful decision in terms of violation of constitutional provisions of fundamental rights. As a result, a large number of ex servicemen are suffering from financial hardship besides moral depression.

8. Quoting the same authority /Govt. orders issued by DOP&T the PSU organizations and Nationalised Banks (Govt. Undertakings) have facilitated the pay fixation to the ex servicemen (PBOR) to fix the pay at the same stage as last pay drawn before retirement but Central Government departments still not agreed to provide the entitlements to the re employed ex soldiers due to ambiguous provisions. They cite different reasons that PSUs are following different pay system etc. forgetting that PSUs derive the authority from the same Central government, So, how can there be two sets of rules for same category by same employer (Central Government).

REMEDIAL ACTION REQUIRED TO BE TAKEN

9. In view of the above it is requested that, your good office should weed out the actual disparity arising out of incomplete and discriminatory orders issued by the DOP&T vide CCS (Fixation of pay of reemployed pensioners) Order 1986 (amended from time to time) and issue necessary amendment/fresh order in favour of the Ex Servicemen (PBOR) category as mentioned below: :
For: : Para 4(b)(i)

Where the pension is fully ignored, the initial pay on re employment shall be fixed as per entry pay in the revised pay structure of the re employed post applicable in the case of direct recruits appointed on or after 1.1.2006 as notified vide Section II, Part A of First Schedule to CCS (RP) Rules, 2008.

It should be read as under (DRAFT PROPOSAL) : Para 4(b)(i) where the pension is fully ignored, the initial pay on re employment shall be fixed as per entry pay in the revised pay structure of the re employed post applicable in the case of direct recruits appointed on or after 1.1.2006 as notified vide Section II, Part A of First Schedule to CCS (RP) Rules, 2008. In cases of reemployed ex servicemen where pension is fully ignored and pay fixed at minimum/entry pay of reemployed post which is less than his pay last drawn in the Armed forces will be treated as undue hardship and his pay required to be fixed at a higher stage by allowing advance increments until his pay reaches at the same stage as last pay drawn before retirement to prevent undue hardship. In addition, he will be permitted to draw, separately any pension sanctioned to him and to retain any other form of retirement benefit.

Illustration: Sergeant/Havildar (any non commissioned rank) ABC Retired before the age of 55 Years and reemployed in the pay scale of Rs 5830 (BP) + Rs 2400 (GP)
Initial pay of reemployed post = Rs 5830 + Rs 2400 = Rs 8230
Last pay drawn by him = Rs 12000 (BP) + Rs 2800 (GP) + Rs 2000 (MSP) + Rs 300 (Class pay) + GCB 240 + X pay 1400
Total pay last drawn = Rs 18740/
Pension sanctioned = Rs 9370/

Pay fixation on his reemployment :
Step : I Determination of minimum pay = Rs 5830 + Rs 2400 = 8230 (minimum pay of reemployed post)
Step : II Fixation of total pay = Rs 18740/ (Last pay drawn) by allowing advance increment).
Step : III Manner of Re fixation of pay = Rs 16840 (Band Pay) + 2400 (Grade Pay of re employed post)
(This order should be applicable to all re employed ex servicemen irrespective of their date of retirement and date of re employment)

CONCLUSION

10. In the light of the above, it is requested that the fresh orders/amendments be issued free from any scope of misinterpretation/ ambiguity, clearly mentioning the feasibility of fixation of pay of the re employed ex servicemen belonging to below officer ranks, at the same stage as the last pay drawn before retirement, ignoring entire portion of pension since the pension is miniscule and not even enough to live on rent in a city. In addition, they shall be permitted to draw, separately any pension sanctioned to them and to retain any other form of retirement benefit. Thousands of re employed soldiers suffering from acute financial hardship due to very low earning even after re employed. They would get relief with the right approach and initiative if taken at your end at the earliest. This will also save the Government's expenditure and precious time of officers on litigations that are either pending or may be initiated in various courts.

Yours faithfully,
sd/
(M. Krishnan)
Secretary General
Mob: 09447068125
E mail: mkrishnan6854@gmail.com
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Source: Confederation

7th Pay Commission: Achhe Din for government employees, Centre likely to hike Dearness Allowance by 2 per cent before Dussehra

7th Pay Commission: Achhe Din for government employees, Centre likely to hike Dearness Allowance by 2 per cent before Dussehra

Union Finance Minister Arun Jaitley will move the proposal of hike in DA on the basis of accepted formula for calculation under the 7th Pay Commission recommendation.

In a good news for 10 million central government employees, Narendra Modi government is likely to hike dearness allowance (DA) by 2 per cent ahead of the Dusshera festival. Union Finance Minister Arun Jaitley will move the proposal of hike in DA on the basis of accepted formula for calculation under the 7th Pay Commission recommendation, while the Union Cabinet is expected to clear the proposal of hike in DA in the next meeting. The 7th Pay Commission recommended the merging of 125 percent dearness allowance into the basic pay.

The Central government is likely to hike dearness allowance (DA) by 2 per cent, based on the data of the Consumer Price Index- Industrial Workers ( CPI-IW). Average rate of Consumer Price Index-Industrial Labour from July 2015 to June, 2016 was 2.90 per cent. Thus, the Centre will increase dearness allowance by two as per accepted formula for calculation, a Finance Ministry official working on the implementation of the 7th Pay Commission recommendations was quoted as saying by the Sen Times.

Unlike the 6th Pay commission, which had recommended the basic pay based on the Consumer Price Index 115.76 in January 2006, 7th Pay commission recommended new pay matrix, based on the Consumer Price Index 261.42. The government will use the data of CPI-IW from July 1, 2015 to June 30, 2016. The CPI (IW) of the months July, August, September, October, November, December, January, February, March, April, May and June were 263, 264, 266, 269, 270, 269, 269, 267, 268, 271, 275 and 277 respectively.

The Centre revised DA twice in a year on the basis of one year average of retail inflation for industrial workers as per the accepted formula. Last times, the government had increased DA by 6 percentage points from 119 to 125. The new rate of DA will be implemented from July 1, 2016. The cabinet approved the 7th Pay Commission’s recommendations for central government employees on July 29, which will impact some 47 lakh central government employees and 53 lakh pensioners.

The 7th Pay Commission notification confirmed that central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. The Cabinet also approved the increase in minimum pay Rs 18,000 from existing Rs 7,000. The 7th pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. However no final decision has been taken on the allowances by the government. The allowances had been a major bone of contention amongst majority of the central government employees.

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