PIB: 7th Pay Commission recommendations were implemented & NPS has been liberalized said by Shri Goyal

PIB: 7th Pay Commission recommendations were implemented & NPS has been liberalized said by Shri Goyal

Press Information Bureau
Government of India
Ministry of Finance

01-February-2019

Highest Ever Growth Of 42% Recorded in Minimum Wages of Labours during last 5 years

During the last 5 years, the minimum wages of labours of all classes have been increased by 42% which is the highest increase so far. While presenting the Interim Budget 2019-20 in Parliament today, the Union Minister for Finance, Corporate Affairs, Railways and Coal, Shri Piyush Goyal said that the high growth and formalistation of the economy has led to the expansion of employment opportunities as shown in EPFO membership, which has increased by nearly 2 crore in 2 years reflecting formalisation of the economy and job creations.

Shri Goyal said that the 7th Pay Commission recommendations were implemented and New Pension Scheme (NPS) has been liberalized. The Government’s contribution in NPS had been increased 10% to 14%. The limit of gratuity payment has been increased from Rs. 10 lakh to Rs. 20 lakh. The limit of eligibility cover of ESIC has been increased from Rs. 15,000 per month to Rs. 21,000 per month. The minimum pension for all labours has been fixed at Rs. 1,000 per month. In case of the death of a labour during the service, the EPFO contribution has been increased from Rs. 2.5 lakh to Rs. 6 lakh. The honorarium of all classes of labours under Anganwadi and Asha scheme has been increased by about 50%.

Source: PIB

Mizoram panel to study 7th Pay Commission recommendations

Mizoram panel to study 7th Pay Commission recommendations

The Mizoram government has decided to set up a committee to study the Seventh Pay Commission recommendations even as it agreed in principle to implement it in the state.

This was decided at a meeting of the Council of Ministers last evening.

The 42,457 regular state government employees would require additional allocation of Rs 563 crore annually if the Seventh Pay Commission recommendations were implemented, state finance department officials said.

Chief Secretary Lalmalsawma said that at present, 36-37 per cent of the total state annual budget is used for paying off the salaries of the state government employees.

The expenditure on salaries did not include the salaries of employees of Lai, Mara and Chakma autonomous district councils, teachers working in deficit schools and contract and muster roll workers, Lalmalsawma said.

The meeting also approved the proposal for creation of 629 new posts for the proposed establishment of the lone Medical College - Mizoram Institute of Medical Education and Research (MIMER) - at the Falkawn village near Aizawl.

PTI

Grant of Advances - 7th Central Pay Commission recommendations - Discontinuance of Natural Calamity Advance

Grant of Advances - Seventh Central Pay Commission recommendations - Discontinuance of Natural Calamity Advance. 

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No.E(G) 2017 / AD 1-1

RBE No. 52/2017

New Delhi, dated 30.05.2017

The General Managers & FA&CAOs,
All Indian Railways &
Production Units etc.
(as per standard mailing list)

Sub: Grant of Advances - Seventh Central Pay Commission recommendations - Discontinuance of Natural Calamity Advance.

The Seventh Central Pay Commission vide Para 9.1.4 had recommended that all the interest-free advances being granted to the Central Government employees should be abolished. The Government's decision in this regard has been conveyed by the Ministry of Finance vide their OM No.12(1)E.II(A)/2016 dated 07.10.2016. According to the instructions contained therein, the Natural Calamity Advance in addition to six other advances has been abolished.

2.The Government's decision in respect of abolition of advance of Natural Calamity Advance has been considered by the Ministry of Railways in consultation with Finance Directorate. It has been decided to abolish Natural Calamity advance w.e.f. 07.10.2016. The cases where the advances have already been sanctioned need not be reopened.

3.The provisions in respect of Natural Calamity Advance are contained in paras 1123 and 1123(A) of Indian Railway Establishment Manual (IREM) Volume-I. In view of the above, it is directed that paras 1123 and 1123 (A) of IREM may be amended as in the enclosed Advance Correction Slip No.238.

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

5.Please acknowledge receipt.
DA: Correction Slip.

S/d,
(D.Joseph)
Dy.Dir./E(G) III
Railway Board

ADVANCE CORRECTION SLIP TO THE INDIAN RAILWAY ESTABLISHMENT

MANUAL VOLUME-I

Advance Correction Slip No.238.

The following amendments may be made to Para 1123 and 1123(A) of the Indian Railway Establishment Manual, Volume-I

Para 1123 and 1123(A) may be substituted as under:
Para 1123 and 1123(A) Natural Calamity Advance
The provisions stand deleted as the advance in this regard has been abolished by the Seventh Pay Commission.
(Authority : Railway Board's letter No.E(G)2017/AD 1-1 dated 30/05/2017)

Source: NFIR

Central Government Employees not to go on strike on May 23 over 7th Pay Commission allowances

Central Government Employees not to go on strike on May 23 over '7th Pay Commission allowances'

New Delhi: Central government employees' will not to go on strike on May 23 in protest at the "government inaction" on fulfilling their demands, including hike in allowance as per the 7th Pay Commission recommendations.

No central government office will be closed at any part of the country and the trains will also be running on May 23.

The Confederation of central government employees, has temporarily postponed the strike scheduled on May 23 following assurance of government to hike allowances shortly.

"The strike has been put on hold for now following the assurance of government. However, the confederation will make sure that the genuine demands of the employees are met with," a top leader of confederation, who did not wish to be named told us.

"In view of government's assurance to hike allowances shortly, our strike on May 23 stands deferred," he added.

The Confederation of central government employees had given the strike call protesting against the delay in allowance hike as per the revised 7th Pay Commission recommendations.

The confederation is opposed to the government's delaying tactics to hike allowances of central government employee.

After the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances, the Committee on Allowances, headed by Finance Secretary Ashok Lavasa was constituted in June last year.

The 7th Pay Commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance, which triggered resentment among central government employees that governments complied with formation of the Committee on Allowances.

The Committee on Allowances had submitted its report to Finance Minister Arun Jaitley on April 27.
The report is being currently examined by the Department of Expenditure. It will be placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th Pay Commission recommendations and to firm up the proposal for approval of the Cabinet.

The central government employees now get all allowances except dearness allowance at the old rates until the cabinet approval of higher allowances.

7th Pay Commission: Central government employees to get higher allowances from April 1, says FinMin

7th Pay Commission: Central employees to get higher allowances from April 1, says FinMin

New Delhi: Central government employees will get higher allowances according to the 7th Pay Commission recommendations from April 1, a senior finance ministry official said.

The employees will get their April salaries with higher allowances in accordance with the 7th Pay Commission recommendations, he told our reporter at the finance ministry on Monday.

Everything is decided. The Cabinet and the prime minister have to approve the Committee on Allowances report. The finance ministry has no reason to raise any question on the report of committee on allowances, he added.

He said the process to implement the higher allowances would be completed soon.

The central government approved the 7th Pay Commission scale for its employees in June, offering a highest basic pay of Rs 2.5 lakh and a minimum of Rs 18,000.

The new basic pay has been given in August 2016 with arrears, effective from January 1, 2016. The allowances, however, other than dearness allowance referred to the Committee on Allowances headed by the Finance Secretary Ashok Lavasa in July 2016, for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Accordingly, existing allowances are now paid to the employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

The Committee on Allowances was initially given a time of four months to submit its report to the Finance Minister Arun Jaitley.

In October last year, Ashok Lavasa was quoted by some media outlets as saying he was ready with the report.

But the government gave extension to the committee up to February 22, 2017 on the pretext of demonetisation and the government said that the cash crunch was the reason behind the delay in announcing higher allowances.

The announcement of assembly elections in five states has given another excuse for the government as it cannot announce allowances hike till the model code of conduct is in place up to March 8.

The finance ministry official said the Committee on Allowances report states the current House Rent allowance (HRA) slab, which is 30 per cent of basic pay, for metros for employees. An announcement on the same is expected soon but no hike in Transport Allowance (TPTA) for central government employees in its report and the Transport Allowance will remain the same as 6th Pay Commission recommendations.
However, the pay panel had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay for Class X (metros), Y and Z cities, respectively.

TST

Was the 7th CPC Allowance Committee Report submitted to the government as early as February 22?

Was the 7th CPC Allowance Committee Report submitted to the government as early as February 22?

7th CPC Allowance Committee Report Submitted to the Government or not?

Was the 7th CPC Allowance Committee Report submitted to the government as early as February 22?
A high-level committee, under the chairmanship of Finance Secretary Ashok Lavasa was constituted by the Central Government to review the Seventh Pay Commission’s recommendations regarding the allowances being given to the Central Government employees. According to information, the committee had already submitted its report on February 22.

Irrespective of who possesses the report now - the committee or the government - what is more intriguing is the recommendations that it contains.

One could see that the 7th Pay Commission suggested either rationalization or simplification at many places. An example is the Pay Matrix Table, which has now brought the entire Pay Structure of more than 35 lakh employees under one Table. Although there are some anomalies, the system has dramatically simplified the process of annual increment calculation and also pay fixation on Promotion or MACP.

At present 196 different kinds of allowances are being given to the Central Government employees. Some modifications have been recommended in these too as part of the rationalization and simplification drive. The Seventh Pay Commission has recommended the abolition of 52 allowances. And another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances.

The Commission said that the entire range of allowances is administered in broadly four ways. Fully DA indexed Allowances, Partially or Semi DA indexed Allowances, No DA indexation Allowances and Percentage based Allowances. House Rent Allowance is being under the category of Percentage based Allowances. The Commission also said that the compensation towards the housing needs of Central Government employees is covered in many ways. The Commission finally suggested that the percentage based allowances by a factor of 0.8, the Commission recommends that HRA should be rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The big irritation, or rather disappointment to the Central Government employees was the recommendation to reduce the percentage of House Rent Allowance (HRA).

All trade unions have expressed their harsh opposition to the proposed cuts in HRA. The Central Government employees’ Federations also expressed their disappointment through various protest. Finally the Central Government accepted to constitute a high level committee to examine the recommendations of 7th Pay Commission regarding Allowances.

Now, sources claim that the committee has already submitted its report to the government.

The government can announce its final decision on the recommendations of the committee any day. But, many believe that there could be a delay in the announcements due to the state elections that are being held in various parts of the country and the election commission’s guidelines that are being enforced now.
Unconfirmed reports say that the committee has recommended the percentage rates of HRA as per 6th CPC and changes in the method of calculating Transport Allowances also.

The biggest mystery however is - will these recommendations be given retrospective effect and will arrears be given?

Three dates are currently being suggested - January 1, 2016; August 1, 2016; and April 1, 2017.
Only the Central Government has all the answers right now.

Setting up of Anomaly Committee to settle the anomalies arising out of the implementation of the 7th Pay Commission's recommendations

Modification in the definition of anomaly - DoPT Orders 
Setting up of Anomaly Committee to settle the anomalies arising out of the implementation of the Seventh Pay Commissions recommendations.

 No.11/2/2016-JCA
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training
Establishment JCA Section

North Block, New Delhi
Dated the 20th February, 2017

OFFICE MEMORANDUM

Subject: Setting up of Anomaly Committee to settle the anomalies arising out of the implementation of the Seventh Pay Commission's recommendations.

The undersigned is directed to refer to DoPT’s OM of even number dated 16/8/2016 and to incorporate the following modification in the definition of anomaly:

"Where the Official Side and the Staff Side are of the opinion that the vertical and horizontal relativities have been disturbed as a result of the 7th Central Pay Commission to give rise to anomalous situation."

2. With the incorporation of the above para in the O.M., the definition of anomaly will read as follows:
(1) Definition of Anomaly
Anomaly will include the following cases;

a) Where the Official Side and the Staff Side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the Sixth Central Pay Commission itself without the Commission assigning any reason;

b) Where the maximum of the Level in the Pay Matrix corresponding to the applicable Grade Pay in the Pay Band under the pre-revised structure as notified vide CCS(RP Rules 2016, is less than the amount an employee is entitled to be fixed at, as per the formula for fixation of pay contained in the said Rules;

c) Where the Official side and the Staff Side are of the opinion that the vertical and horizontal relativities have been disturbed as a result of the 7th Central Pay Commission to give rise to anomalous situation.

3. The rest of the content of the O.M. dated 16.08.2016 shall remain unchanged.

sd/-
(D.K.Sengupta)
Deputy Secretary (JCA)

Click to view the order
Authority: http://dopt.gov.in/

7th Pay Commission: Why government not to implement higher allowances?

7th Pay Commission: Why government not to implement higher allowances?

New Delhi: Despite all that has been said about the higher allowances under the 7th Pay Commission recommendations, an important issue for central government employees has now been strangely absent from the government agenda.

First, the Finance Minister Arun Jaitley had claimed it must implement after four months of the basic pay hike but it failed to come true.

More than 14 to 15 months have passed since the 7th pay commission report was submitted and seven months have elapsed since the union cabinet approved the 7th Pay Commission recommendations for salary hike of central government employees, but the they are still awaiting the higher allowances.

The government has given higher basic pay in August 2016 with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance referred to the 'Committee on Allowances' headed by the Finance Secretary Ashok Lavasa for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Accordingly, existing allowances are now paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

Finance Secretary Ashok Lavasa said in October 2016, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."

But the government gave extension to the committee up to February 22, 2017 on the pretext of demonetisation and the government said that the cash crunch was the reason behind the delay in announcing higher allowances.

The announcement of assembly elections in five states has given an excuse for the government as it cannot announce pay hikes till the model code of conduct is in place up to March 8.

The government is using delaying tactics to save the government money to pay higher allowances without arrears from August 16.

The delay in implementation of the higher allowances has caused tremendous irritation and frustration among employees.

The Prime Minister Narendra Modi led BJP may have to face a backlash in the assembly elections in the five states, two of which is ruled by the party either directly or in alliance. Thus, not properly implementing of the 7th Pay Commission recommendations would amount to strike to blow to the BJP in polls.

TST

7th Pay Commission – Govt Still thinking will it be feasible - about over higher Allowances

7th Pay Commission - Govt Still thinking will it be feasible - about over higher Allowances

The Finance Ministry official involved with the process of higher allowances on condition of anonymity, told that the Govt is facing the classic dilemma on the subject of issuing of notification of higher allowances under 7th pay commission recommendations.

“The October-November month is the scheduled for issuing notification for the Finance Ministry, but the time was extended by 2 months because the cash crunch on account of demonetisation, which is taking time to get normality.

“The Finance Ministry has got 2 months extension to issue the higher allowances notification under 7th Pay Commission recommendations”, a Finance Ministry official said on condition of anonymity.

Therefor,unless the banks can begin to function with a modicum of efficiency, the government will not issue notification on higher allowances to save demonetisation chaos,” the sources added.


The sources further added “the issue of increased financial activities after demonetisation compels the govt to keep in abeyance to issue higher allowances notification for getting normalized the position and it is likely to issue from January next, after the the cash crunch will ease. (‘Hopefully’).

As the demonetisation drive today completes 30 days, cash situation continues to stay critical in the country as evident by the unending queues outside banks and a few operational ATMs.

“The government dilemma in relation to issuing higher allowances notification will make to force central government employees to stand in long queues,” the official said. “That is the dilemma, the government is trying to work through.”

“The committee on Allowances has finalized the proposal on the allowances but the government is not interested to do it now,” an official said. “The government will decide to review all situation in respect of cash crunch, the Finance Minister Arun Jaitley is looking at all situations to normalize cash crunch, only then he will receive report on higher allowances.” sources added.

However, the committee on allowances head by Finance Secretary Ashok Lavasa said in October, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”

January Salary Of Central Employees To Follow Higher Allowances: Finance Ministry

January Salary Of Central Employees To Follow Higher Allowances: Finance Ministry

Report says that a top official of the finance ministry today told on condition of anonymity that Central government employees salaries for January will be in line with the higher allowances.

When asked whether the arrears would be paid too, he said, "This depends on the cabinet. If the cabinet gives the nod higher allowances with retrospective effect from August 2016, the arrears will be paid."

"The government faces severe attack for cash crunch because of demonetisation. But the situation will return to normalcy after the deadline of December 30 for deposit of invalid Rs 500 and Rs 1,000 notes."

He added, "It's better if delayed till sufficient cash is available with the banks."

The government in June approved the 7th Pay Commission recommendations for its employees with higher basic pay, which has been paid with arrears, effective from January 1, 2016 but the hike in allowances other than dearness allowance referred to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination as as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Until acceptance of higher allowances, existing allowances are to be paid according to the 6th Pay Commission recommendations, says an earlier official statement issued by the finance ministry.
However, the committee on allowances head Finance Secretary Ashok Lavasa said recently, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."

Source: tkbsen.in

Spike in bank deposits in September due to 7th Pay Commission arrears: FM

Spike in bank deposits in September due to 7th Pay Commission arrears: FM

New Delhi: Union Finance Minister Arun Jaitley on Saturday said there was a spike in bank deposits only in September during the last one year, largely due to the 7th Pay Commission arrears being released in August.
The FM was addressing a press conference here on the current demonetization move.

The 4.8 million central government employees and 5.2 million pensioners got theirs arrears of basic pay and pension arising from implementation of the 7th Pay Commission recommendations in one go in August salaries and pension respectively. The hike in basic pay and pension has been made effective from January 1, 2016.

Jaitley said it is a massive operation to replace 86 per cent of currency under circulation. The SBI alone had done Rs 2.28 crore transactions in the past two days; the total banking transactions were around five times of that, he added.

The minister said the SBI alone had got Rs 47,868 crore deposits in the past two days; total deposits in all the banks must be around Rs 2 lakh crore to Rs 2.25 lakh crore, he added.

The RBI bank currency chests numbering 4,000 had enough currency stocks, Jaitley assured.

The Finance Minister appealed to the people to stagger depositing the defunct currency and not to crowd the banks.

He said it would take two to three weeks to re-calibrate two lakh ATMs to vend out new Rs 2,000 and Rs 500 notes.

He said stock details had been sought from jewellers on reports of dealings in defunct currency, adding that the government would not allow any illegal transaction in bullion.

He said the supposed chip in the Rs 2,000 note and digital lockers were mere rumours.

Inputs with PTI

7th Pay Commission Latest News: No 'Achhe Din' for govt employees, no hike in basic pay, fatter allowances likely

7th Pay Commission Latest News: No 'Achhe Din' for govt employees, no hike in basic pay, fatter allowances likely

It simply means, the National Anomaly Committee or Committee on Allowances won't suggest or approve any changes in the basic pay or allowance against the recommendations of the 7th Pay Commission.

The ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa, is yet to submit its report on fatter allowances recommended by the 7th Pay Commission, however the Finance Ministry sources said the government won’t consider any change in 7th Pay Commission recommendations. Sources confirmed that there will be no changes in basic pay and allowances recommended by the 7th Pay Commission. It simply means, the National Anomaly Committee or Committee on Allowances won’t suggest or approve any changes in the basic pay or allowance against the recommendations of the 7th Pay Commission.

Sources in the Finance Ministry have made it clear that the National Anomaly Committee on behalf of the government won’t consider any hike in basic pay and fatter allowances recommended by the 7th Pay Commission. The latest development contradicts with what Union Finance Minister Arun Jaitley had promised. Those who will hope over these issues will gain nothing but no change on 7th Pay Commission recommendations of pay scales and allowances are very much possible, said sources.

Finance Minister Arun Jaitley had promised the government would consider the demand of an increase in basic pay and allowances of the central government employees. The government had said it will form a High Level Committee to review the new pa scales. However no such committee has been formed till date. Instead, the government formed a 22-member National Anomaly Committee headed by Secretary, Department of Personnel and Training (DoPT) to look into various pay related anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

Sources said the government has decided to stick to the recommendations of the 7th Pay Commission on basic pay and allowances. They also confirmed that the ‘Committee on Allowances’ won’t suggest any hike and is likely to stick with the recommendations of the 7th Pay Commission. 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.

Source: india.com

Central Govt Employees DA to be hiked by 2% from July under 7th Pay Commission recommendations

Central Government  Employees DA to be hiked by 2% from July under 7th Pay Commission recommendations

New Delhi: The government is to approve hiking dearness allowance (DA) to 2 per cent under 7th Pay Commission recommendations, which was accepted by the cabinet with retrospective effect from January 1, 2016.

The 7th Pay Commission recommended the merging of 125 percent dearness allowance into the basic pay.

The central government employees also now get 125 per cent dearness allowance from January, 2016 in pre-revised scales.

The 7th Pay commission recommended new pay matrix, based on the Consumer Price Index 261.42, its effective date in January this year, while the 6th Pay commission had recommended the basic pay based on the Consumer Price Index 115.76 in January 2006.

As per practice, the government uses Consumer Price Index- Industrial Workers ( CPI-IW) data of the past 12 months to arrive at a quantum for the purpose of any DA hike.

Thus, the CPI-IW from July 1, 2015 to June 30, 2016 would be used to take a final call on the matter.
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 average of the consumer price index -industrial workers (CPI-IW) from July 1, 2015 to June 30, 2016 works out to be 2.90 per cent. Thus the Central government will hike dearness allowance for it employees by 2 per cent as government will not round off the figures for the purpose of calculating dearness allowance.
The proposed hike is in accordance with the accepted formula based on the recommendations of the 6th Pay Commission as 7th Pay Commission recommended to go for ditto in this regard.

Accordingly, new Dearness Allowance Calculation formula is given below:-

(12 Monthly Average) – 261.42
———————————X 100 = D A Percentage (ignore decimals)
261.42

TST

Setting up of Anomaly Committee of settle the Anomalies arising out of the implementation of the Seventh Pay Commissions recommendations

No.11/2/2016-JCA
Government of India
Ministry of Personnel, Public Grievances and pensions
Department of Personnel & Training
JCA Section

*************

North Block, New Delhi
Dated the 16th August, 2016

OFFICE MEMORANDUM

Subject: Setting up of Anomaly Committee to settle the Anomalies arising out of the implementation of the Seventh Pay Commission's recommendations.

The undersigned is directed to say that it has been decided that Anomaly Committees should be set up, consisting of representatives of the Officials Side and the Staff Side to settle the anomalies arising out of the implementation of the 7th Pay Commission's recommendations, subject to the following conditions, namely:

(1) Definition of Anomaly

Anomaly will include the following cases:

(a) where the Official Side and the Staff Side are of the opinion that any
recommendation is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the Commission assigning any
reason; and

(b) where the maximum of the Level in the Pay Matrix corresponding to the applicable Grade Pay in the Pay Band under the pre-revised structure, as notified vide CCS (RP) Rules 2016, is less than the amount an employee is entitled to be fixed at, as per the formula for fixation of pay contained in the said Rules".

(2) Composition:

There will be two levels of Anomaly Committees, National and Departmental, consisting of representatives of the Official Side and the Staff Side of the National Council and the Departmental Council respectively.

(3) The Departmental Anomaly Committee may be chaired by the Additional Secretary (Admn.) or the Joint Secretary (Admn.), if there is no post of Additional Secretary (Admn.). Financial Adviser of the Ministry / Department shall be one of the Member of the Departmental Anomaly Committee.

(4) The National Anomaly Committee will deal with anomalies common to two or more Departments and in respect of common categories of employees. The Departmental Anomaly Committee will deal with anomalies pertaining exclusively to the Department concerned and having no repercussions on the employees of another Ministry / Department in the opinion of the Financial Adviser.

(5) The Anomaly Committee shall receive anomalies through Secretary, Staff Side of respective Council upto six months from the date of its constitution and it will finally dispose of all the anomalies within a period of one year from the date of its  constitution. Any recommendations of the Anomaly Committee to resolve the anomaly shall be subject to the approval of the Government.

(6) Cases where there is a dispute about the definition of "anomaly" and those where there is a disagreement between the Staff Side and the Official Side on the anomaly will be referred to and "Arbitrator" to be appointed out of a panel of names proposed by the two sides. However, this arbitration will not be a part of the JCM Scheme.

(7) The Arbitrator so appointed shall consider the disputed cases arising in the Anomaly Committees at the National as well as Department level.

(8) Orders regarding appointment of the Arbitrator and constitution of Anomaly Committee at National Level will be issued separately.

All Ministries / Departments are accordingly requested to take urgent action to set up the Anomaly Committees for settlement of anomalies arising out of implementation of the 7th Pay Commission's recommendations, as stipulated above.

(G. Srinivasan)
Deputy Secretary (JCA)

DoPT order

7th Pay Commission: Allowances to be paid ahead of Dussehra

7th Pay Commission: Allowances to be paid ahead of Dussehra

New Delhi: 7th Pay Commission allowances for all central government employees under the new pay matrix will be paid ahead of festive season of Dussehra, a top Finance Ministry’s official told.

According to Union Cabinet decision, a Committee headed by Finance Secretary Ashok Lavasa and Secretaries of Home Affairs, Defence, Health and Family Welfare among others as its members was constituted on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance.

The Union Cabinet took this decision on June 29, when they approved 7th Pay Commission proposal.
“The new pay matrix is implemented as per a decision of the cabinet in light of notification and resolution for the implementation of the 7th Pay Commission recommendations was issued by the Finance Ministry on July 25,” he said in reply to a question from our reporter.

The pay fixation and arrears related Office Memorandum No.1-5/2016-IC and Corrigendum dated July 29 and dated August 1 respectively were issued, he added.

The hike in the salary component as recommended by the 7th Pay Commission was accepted by the cabinet with retrospective effect from January 1, 2016. The government decided to pay its 48 lakh employees and 52 lakh pensioners’ arrears arising from implementation of the 7th Pay Commission recommendations in one go in this month salaries and pensions.

The Finance Secretary committee was asked to submit its report within four months. Accordingly, a decision on increased allowances is to be come in November, but government decided to pay it with bonus ahead of festive season of Dussehra and the committee is bound to follow the government instruction.” official confirmed us.

So, the brightest diyas of coming Diwali will be lit outside houses of central government employees.
The pay commission headed by Justice A K Mathur had recommended abolition of 51 allowances and subsuming 37 others after examining 196 allowances.

“These measures are radical in nature, even the employees’ unions have given their suggestions in the matter and therefore the committee has been formed to look into it. Whatever the committee decides, it will go to the Cabinet,” Finance Minister Arun Jaitley said in Rajya Sabha on Tuesday.

This is noted that the first meeting of the committee already took place on August 4.

7th Pay Commission: Millions to get better pensions

7th Pay Commission: Millions to get better pensions

New Delhi: Millions of retired central government employees will be able to get better pensions under the new pension rules have been made on 7th Pay Commission recommendations.

This new pension rules should cheer retired employees. They will get a higher pension packet and arrears from this month from exchequer with the centre issuing on Thursday the Resolution and Office Memorandums the F.No 38/37/2016-P&PW(A)(i) and the F.No.38/37/2016-P&PW(A)(ii) respectively.
The revised pensions are higher than what the get now.

Although the move benefits the cross-section of retired employees, those in higher brackets have gained more in real terms. New pensions for defence and railway personnel will be notified separately.

Older pensioners have an added reason to rejoice. Those over 80 years will get an additional 20% of their basic pension. This goes up by 30%, 40%, 50% and 100% for those over 85, 90 95, and 100 respectively.
To get an idea of the quantum of hike, a person with a basic pension of Rs 12,600 — who used to get Rs 28,350 (with Dearness allowance 125%) in hand — will now receive a total pension of Rs 32,382. The new rates are effective from January 2016 and the arrears will be given out in one installment during this month.
The maximum gratuity too has been revised to Rs 20 lakh, up from the earlier Rs 10 lakh. The ceiling on gratuity will increase by 25 per cent whenever the dearness allowance rises by 50 per cent of the basic pay.
A payment of Rs 25 lakh, from existing Rs 10 lakh, will be given to the next of kin in case of death occurring due to accidents in course of performance of duties and those attributed to acts of violence by terrorists, anti social elements etc.

GOLDEN SMILES

• Minimum pension Rs Rs 9,000, up from earlier Rs 7,875 (with Dearness allowance 125%) in hand (revised pension to be effective from January 1, 2016). 
• Maximum pension Rs 1,25,000, up from Rs 1,01,250 (with Dearness allowance 125%). 
• Maximum gratuity up to Rs 20 lakh (depending on years of service and last salary drawn). 
• The ceiling on gratuity will increase by 25% whenever the dearness allowance rises by 50% of the basic pay. 
• Incremental additional pension for those 80 years and above. People over 100 to get double pension.

Goa to implement 7th Pay Commission recommendations from Nov 1

Goa to implement 7th Pay Commission recommendations from Nov 1

Panaji: Goa Chief Minister Laxmikant Parsekar has said the 7th Pay Commission recommendations would be implemented in the state from November 1.

“We have decided to implement the recommendations of Seventh Pay Commission from November 1 onwards. The pending arrears from January to October 2016 would be deposited in the employee provident fund (PF) and National Pension System (NPS),” Parsekar told the state Assembly yesterday while talking on the demand for grants.

He also said the order on implementation of the seventh pay commission would be issued around Ganesh Chaturthi, scheduled on September 5.

“The Ganesh Chaturthi will come with good news to the government employees. We will issue the order during that time. The implementation would be from November 1,” he said.

The chief minister said the government will have to spend an additional Rs 72 crore monthly towards salaries and pensions of government employees for implementation of recommendations of the new commission.
A provision of Rs 2,553 crore has been made towards seventh pay commission implementation in the state budget, Parsekar said.

The Chief Minister had a few days back informed the House that as per the revised pay scale, the state government will have to pay Rs 272 crore per month as against Rs 213 crore per month as per the existing scale, which will be an additional burden of Rs 59 crore.

During 2015-16, Rs 1,946 crore were earmarked for the salaries and pensions, which has now been hiked to Rs 2,553 crore to make up for the liability created by seventh pay.

PTI

Option for Revising 7th CPC pay on Increment date is Beneficial in Rare cases

Option for Revising 7th CPC pay on Increment date is Beneficial in Rare cases

Workout before Giving Option for Revising 7th CPC Pay

Giving Option for revision of 7th CPC Pay is a must and important thing to be done by Central Government Employees in respect of implementation of 7th Pay Commission recommendations

Your 7th CPC Pay will be revised as per the Option you choose to revise your Pay

There are Two options provided in option form
1 . I ___________________________________ hereby elect the revised pay structure with effect from 1st January 2016
2. I, __________________________________ hereby elect to continue on Pay band and Grade Pay of my substantive / officiating post mentioned below until:
* the date of my next increment/the date of my subsequent increment raising my pay to Rs ________________ / I vacate or cease to draw pay in the existing pay structure / the date of my next promotion/upgradation to the post of _________________________

Normally it has been advised by the administrative Department that …

For Option -I

The Government servants those who are not getting Promotion or Upgradation between 1st January 2016 to 1st July 2016 should select No.1 Option i.e electing to revise the Pay with effect from 1.1.2016

For Option -II

The Government servants those who got Promotion / upgradation in the Period between 2st January 2016 and 1st July 2016 will have to select any one of the conditions given in Option No.2 after working out their Pay as per the choices given. Because which Option is beneficial to them is depends on the Basic Pay and Period of Service in the Pre revised Scale. The cases may vary individual to individual.

It is to be noted that one can choose to revise his pay from his next Increment date in Normal Conditions also. Because if revising the pay after granting one increment is beneficial than revising pay from 1st January 2016, he will be allowed to choose the option of I elect to continue on Pay band and Grade Pay of my substantive post until the date of my next increment.

It is observed that selecting revising pay from the Date of next increment in second Option is beneficial in rare cases.

But one important thing to be kept in mind before opting Options other than 1st January 2016
In all Options other than 1st January 2016 YOU SHOULD BE READY TO FORGO ARREARS FOR THE PERIOD FROM 1ST JANUARY TO THE DATE YOU SELECT TO REVISE YOUR PAY.

If you are ready to forego arrears, then you calculate your pay on 1st January 2016 and 1st July 2016 with an increment and select which one is beneficial to you and go according to that.

How to calculate in normal conditions if there is no promotion involved…

A. As on 1.1.2016

Your Basic Pay x 2.57
And Select the Cell same or nearest Higher to this amount arrived at in corresponding Level

B. As on 1.7.2016 after One Increment in sixth CPC

Your Basic Pay x 2.57
And Select the Cell same or nearest Higher to this amount arrived at in corresponding Level

If A is Higher than B, you can select No. 1 option i.e Revising the Pay with effect from 1st January 2016.

If B is Higher than A , You can select the date of my next increment Date in Option no.2. i.e Revising the Pay with effect from 1st July 2016.

Source : http://govtstaffnews.in/

7th pay commission arrears not to push up car, house sales

7th pay commission arrears not to push up car, house sales

New Delhi: Car and house sales are not expected to go up after giving the seven months’ arrears of the 7th Pay Commission recommendations to central government employees on August 31.

As per the notification and resolution, central government employees will receive an average 14.27 per cent hike in basic pay effective from January 1, 2016.

The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

The hype around the 7th Pay Commission recommendations is completely unnecessary, as the real impact is going to be much lesser both in absolute and relative terms compared with the previous 6th Pay Commission. As such, the employees can’t spend more to buy a car or a house.

7th pay commission arrears, its nothing more than peanut for lower and middle level employees. A middle level employee will take home the 7th pay commission arrears that may range from Rs 40,000 to Rs 80,000 on August 31.

How can he purchase a car? With the take arrears salary of Rs 40,000, getting a car loan of Rs 4 lakh is a big deal for an employee. The employee has to bring in margin money to the tune of 15 per cent to 30 per cent of the loan amount, depending on banks.

So, an employee, who is to get arrears Rs 40,000, he will have to pay Rs 80,000, the margin amount for a car loan, which is 20 per cent of a car of Rs 4 lakh. It seems impossible for him to pay the margin money upfront.

Over 80 percent central government employees are working in middle and lower level rungs.

So, bankers say that the 7th pay commission arrears effect on retail lending will be a little.

The last such comprehensive hike in salaries did lead to a sharp increase in consumer spending. House, car and two-wheeler sales, for instance, recorded a sharp surge shortly after the sixth pay panel payouts.

The sixth pay commission report was submitted in 2008, with the higher salaries coming into effect retrospectively from January 1, 2006.

It entitled government employees to huge arrears, a part of which was spent on margin money for buying cars and houses.

The Finance ministry Office Memorandum No.1-5/2016-IC said on Friday, “The 7th Pay Commission arrears shall be paid in cash in one installment along with the payment of salary for the month of August 2016.”

Accordingly, The government’s overall arrears payout will be lower because of only seven months arrears this time, compared to the previous pay commission, which came in late.

It may be recalled that a month ago, Finance Minister Arun Jaitley had “congratulated” central government employees after the Union Cabinet accorded its approval to the 7th pay commission recommendations.

TST

7th CPC arrears to be paid in single installment along with the payment Of salary for the month Of Aug, 2016

7th CPC arrears to be paid in single installment along with the payment Of salary for the month Of Aug, 2016

New Delhi: Government has decided to pay its employees arrears arising from implementation of the 7th Pay Commission recommendations in one go in August salaries.

The government has already notified the 2.57-time hike in basic salary of one crore central government employees and pensioners as per the 7th Pay Commission recommendations. The pay hike has been made effective from January 1, 2016.

In an instruction, the Finance Ministry also said that the revised pay structure effective from January 1, 2016, would include the Dearness Allowance of 125 per cent provided in the pre-revised pay structure. The rate of the first installment of DA under revised pay will be announced later.

“The arrears as accruing on account of revised pay consequent upon fixation of pay under CCS (RP) Rules, 2016 with effect from January 1, 2016, shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, after making necessary adjustment on account of GPF and NPS, as applicable, in view of the revised pay,” said the Finance ministry Office Memorandum
No.1-5/2016-IC today.

In order to expedite disbursal of arrears, the instructions said the “arrear claims may be paid without pre-check of the fixation of pay in the revised scales of pay.”

However, it added, that the facilities to disburse arrears without pre-check of fixation of pay will not be available for those public servants who have retired, resigned or dismissed after the date of implementation of the Pay Commission recommendations.

The minimum pay in central government with effect from January 1, 2016 will now be Rs 18,000 per month, up form Rs 7,000 per month. At the highest level of Cabinet Secretary, the salary would go up from Rs 90,000 a month to Rs 2.5 lakh.

There shall be two dates for grant of increment – January 1 and July 1 every year – instead of the existing July 1 only.

The instruction further said that Income Tax would be deducted before payment of arrears.

PTI