Bonanza for babus! 23.55% Salary hike likely for central government employees

Bonanza for babus! 23.55% Salary hike likely for central government employees

The total outgo if this award is implemented from January 1, 2016, is pegged at Rs 1.02 lakh crore, providing a bid demand boost to the economy.

NEW DELHI: The much-anticipated Seventh Pay Commission bonanza for the government employees is likely soon with the Union Cabinet set to consider the panel’s recommendations on Wednesday.

The committee of secretaries tasked with reviewing the recommendations has given its report that would be considered by the government before deciding on the final award.

The Seventh Pay Commission has announced 23.55% increase in pay and allowances of serving central government employees and 24% increase in pension of retired officers.

A government official confirmed that the proposal is on the cabinet agenda for Wednesday.

The total outgo if this award is implemented from January 1, 2016, is pegged at Rs 1.02 lakh crore, providing a bid demand boost to the economy.

However, in view of fiscal constraints, the government is likely to go for a lower increase and also delay the implementation of the increase in allowances.

In the budget for FY17, the government has budgeted 32% increase in salary of its employees but only a meagre 1.9% rise in allowances.

Finance ministry officials have said that the budget has adequate provision for pay commission and the fiscal deficit target of 3.5% of GDP will not be under stress from implementation of the award.
In a report after the budget, Moody’s had said “Pay Commission recommendations of a 24% hike in public sector salary, allowances and pensions, is not fully accounted for in the budget” and will be a source of spending pressure.

The government can delay the implementation of increase in allowances to a later date but the salary increases will have to be given from January 1, 2016, which means employees will get arrears for these month, a potential boost to economy.

Car and property sales tend to rise after pay commission awards.

ET

Central Government Employees News: Expected DA from January 2014

Central Government Employees News: Expected DA from January 2014

The rate of Dearness Allowance payable to Central Government Employees is arrived from a prescribed formula. In which the main component is the Average AICPIN for Industrial Workers for twelve months prior to every January and July of every year. So it is quite obvious that everyone wants to know the Consumer Price Index Numbers for Industrial Workers of every month. So they can calculate the rate of Dearness Allowance approximately after every six months.

The AICPIN for Industrial workers for the month of July has been released by Labour Bureau to day. As this is the seventh month’s AICPIN , we need still five months AICPIN to calculate the rate of Dearness Allowance to be paid to central Government Employees from January 2014. But with these 7 months CPI points, the expected DA from January 2014 can be arrived approximately.

If we look at the increase rate of the AICPIN for the 12 months starting from January 2012 to December 2012, the AICPIN for the month of January 2012 was 198 and for the month of December 2012 was 219. The total increase for the year was 21 points.

For the next twelve months starting from July 2012 to June 2013, the AICPIN for July 2012 was 212 and June 2013 was 231 and the total increase was 19 points.

So we can expect that for these twelve months from January 2013 to December 2013 the increase will be more than 20 points. It should be noticed that the AICPIN is increased by 4 points for the month of July 2013. This trend is expected to be continued as the Rupee is falling against Dollar consistently. It will have a considerable impact on the prices of basket of essential commodities and Consumer Price Index too. The month of January has been started with 221 points, and this July 2013 touched 235 points level. Up to this month the total increase is 14 points. As this is the seventh month of these twelve months, the remaining 5 months will have a increase of 10 to 15 points level. So the total increase for this year will be of 24 to 29 points. According to this summary the Average AICPIN for these twelve months will be from 233 points to 234 points.

Taking all the above factors into consideration, if we apply this in the formula prescribed for calculating the rate of Dearness Allowance, the answer is as follows:

The Expected DA from January 2014 will be at 100% to 102% level

Source: www.gservants.com
[http://www.gservants.com/2013/08/30/expected-da-from-january-2014/]

CONSUMER PRICE INDEX: New Series for updation of Base of CPI(Industrial Workers) proposed

CONSUMER PRICE INDEX: New Series for updation of Base of CPI(Industrial Workers) proposed
Background of CPI-IW series:

The CPI-IW series on scientific lines was first introduced with base 1960=100 which was based on the results of Family Living Survey conducted in 1958-59 at 50 industrially important centres. The series was then, updated on base 1982=100 and a revision in 1999-2000 has further updated the base on 2001=100. The current series of CPI-IW  with base year 2001=100 covers 78 industrially important centers spread across the country.

Need for Base Updation:

The consumption pattern of the working class population undergoes change over a period of time and therefore, it becomes necessary that the consumption basket is updated from time to time to account for these changes and to maintain the representative character of the index. The need for frequent revision of base on account of fast changing consumption pattern of the target group has been recommended by International Labour Organisation, National Statistical Commission, National Commission on Labour and also Technical Advisory Committee on Statistics of Prices and Cost of Living. Also this recommendation was strongly reiterated by the Index Review Committee set up under the Chairmanship of Prof. Chadha which inter-alia stated that the intervening gap between the two series should not exceed 10 years. Labour Bureau accordingly, has proposed to revise the base year of the existing CPI-IW series 2001=100 to a more recent base year preferably, 2013-2014=100.

Scope and Coverage:

The current series of CPI-IW with base 2001=100 was constructed on the basis of employment data in seven sectors namely, Registered Factories, Mining, Plantations, Ports & Docks, Public Motor Transport, Electricity Generation & Distribution Establishments and Railways sector. The current series comprises of a basket of about 370 items and 289 price collection markets spread across 78 centres of the country. In the existing series, the Working Class Family Income & Expenditure Survey was conducted during 1998-99 by the NSSO and a sample size of 41040 family budget schedules and 15960 house rent schedules (i.e. about a total of 57000 schedules) were canvassed from 78 industrially important centres of the country. The price collection work was done by the Labour Bureau and the main survey work of income & expenditure data collection was conducted by NSSO.

In line with the recommendations of Index Review Committee (IRC), the possibilities of extending the  scope of the new series to two more additional sectors i.e. Handloom and Construction sectors are being considered. However, Labour Bureau expects an increase in the number of centres from existing 78 centres to around 88-95 centres approximately. Consequently, the total number of family budget enquiry schedules and house rent schedules to be canvassed would increase to 70,000 schedules approximately.

Committees:

i) Standing Tripartite Committee

The Index Review Committee (IRC) headed by Prof. G.K. Chadha recommended for constitution of a Standing Tripartite Committee (STC) of all the stakeholders.  Accordingly Ministry of Labour & Employment constituted a Standing Tripartite Committee (STC) vide order No. Y-12011/5/2010-ESA(LB), dated 12th January, 2011.

The Terms of Reference of the STC formed are as follows:

The Standing Tripartite Committee will

{i}       examine the various aspects of the base year revision of Consumer Price Index Number Series for Industrial Workers {CPI-IW} including the selection of Centres, sample size, sampling design, methodology for deriving the weighting diagram and linking factor;

{ii}      examine the method of price collection procedures and machinery of price collection;

{iii}     examine the centre specific weighting diagrams for all the centres, selection of base year, compilation of base year prices, trial indices; and

{iv}     consider any other relevant issue{s}/matter as may be necessary.

Secretarial assistance to the Standing Tripartite Committee will be provided by the Labour Bureau, Ministry of Labour.  The Committee may also enlist the assistance of subject matter experts within and/or outside the Government and may co-opt members according to necessity.

Source- http://labourbureau.nic.in/

Dearness Allowance from July 2013 : Consumer Price Index for Industrial Workers (CPI-IW) – January, 2013

Dearness Allowance from July 2013 :
AICPIN -Consumer Price Index for Industrial Workers (CPI-IW) – January, 2013

As it was almost confirmed that expected dearness allowance from January 2013 will be 80% and only issuing Government order for releasing additional installment of Dearness Allowance from January 2013 is awaited, here after  our focus will obviously be on expected dearness allowance from July 2013. All the Central Government employees have nothing to say about government decision on  not to increase  the Income Tax exemption limit. But it seems all of them were upset with this, as almost all of them will fall under 2lakh to 5lakh income bracket. Now their only hope and expectation to increase the take home pay will be on Dearness Allowance from July 2013. The AICPIN for Industrial Workers for the coming six months from January 2013 to June 2013 will decide the amount of increase in DA from July 2013. So it is quite obvious that the central government employees are very much interested to know the status of  AICPIN – IW  every month. The AICPIN for January 2013 rose by 2 points and pegged at 221 points

No. 5/1/2013-CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

DATED: the 28th February, 2013

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – January, 2013

The All-India CPI-IW for January, 2013 rose by 2 points and pegged at 221 (two hundred and twenty one). On 1-month percentage change, it increased by 0.91 per cent between December and January compared with 0.51 per cent between the same two months a year ago.

The largest upward contribution to the change in current index came from Housing Group which increased by 3.53 per cent, contributing 1.28 percentage points to the total change. This was followed by Miscellaneous and Food groups with 0.74 and 0.26 per cent increase respectively contributing 0.32 and 0.28 percentage points to the change. At item level, largest upward pressure came from Rice, Wheat & Wheat Atta, Groundnut Oil, Eggs (Hen), Fish Fresh, Goat Meat, Poultry (Chicken), Onion, Tea (Readymade), Firewood, Auto Rickshaw Charges, Bus Fare, Rail Fare, etc. However, this was compensated by Arhar Dal, Potato, Tomato, Other Green Vegetables, Sugar, Electricity Charges and Flower/Flower Garlands by putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 11.62 per cent for January, 2013 as compated to 11.17 per cent for the previous month and 5.32 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 14.08 per cent against 13.53 per cent of the previous month and 0.49 per cent during the corresponding month of the previous year.

At centre level, Durgapur recorded the largest increase of 18 points followed by Jharia (10 points), Godavarikhani (9 points), Goa and Surat (8 points each), and Chandigarh (6 points). Among others, 5 point rise was registered in 3 centres, 4 points in 6 centre, 3 points in 12 centres, 2 points in 13 centres and 1 point in 11 centres. On the contrary. Labac-Silchar and Mariani-Jorhat centres reported a decline of 2 points each. The indices of Jalandhar, Rourkela, Sholapur and Kolkata were also declined by 1 point each. Rest of the 21 centres’ indices remained stationary.

The indices of 39 centres are above All-India Index and other 38 centres’ indices are below national average. The index of Mysore centre was at par with all-India index.

The next index of CPI-IW for the month of February, 2013 will be released on Thursday, 28 March, 2013. The same will also be available on the office website www.labourbureau.nic.in.

sd/-
(S.S. NEGI)
DIRECTOR

INDWF proposals for General Budget 2013

General Budget 2013 – INDWF proposals for General Budget 2013

NDWF/PM/Budget/2013 19.01.2013

To
Hon’blePrime Minister,
Government of India,
New Delhi 110 011.

Sub: General Budget 2013 – INDWF proposals for General Budget 2013

Sir,
Indian National Defence Workers Federation affiliated to Indian National Trade Union Congress is the Federation of around 300 unions in the Defence Civilian Sector consisting of around more than 1 lac employees as its members

GENERAL BUDGET 2013 – Consideration of INDWF’s Proposals:

INDWF requests the Hon’ble Finance Minister to kindly consider the following proposals for inclusion in the General Budget 2013 which would provide relief to over 34 lac of Central Government Employees (including 3.5 lacs of Defence Civilian employee) and also other workers.

1. Annual income amounting to Rs.5 lacs may be exempted from the purview of income tax in view of steep rise in prices of essential commodities.

2. Since the percentage of Dearness Allowance has crossed 50% of pay long ago there is thus immediate need for setting up of VII Central Pay Commission, alternatively, the Government may consider setting up of Permanent Wage Revision Board.

3. 50% DA may be merged with pay as was done in the year 2004.

4. Bonus Act to be amended for ensuring payment of Bonus including that of Productivity Linked Bonus (PLB) on actual monthly wages, alternatively, the limit may be enhanced to Rs.10, 000 for payment of PLB to Defence Civilian Employees.

5. New Pension Scheme for the employees joined Government services after 01.01.2004 is anti-worker and anti-staff. NPS does not carry safe guards admissible under the Pension Rules 1993; The New Pension Scheme needs to be scrapped.

6. Additional pension be allowed to the retired Central Government employees on attaining 70 years of age.

7. INDWF proposed upward revision of retirement age on superannuation from 60 to 62 years in the wake of mass retirements during the coming years, as it is possible that there may be shortage of skilled and qualified personnel.

8. Thousands of contract workers have been engaged in the Public and Private Sector industries with a meager salary. This way, the exploitation of poor labourers is going on unabatedly. We are demanding abolition of contract labour system in all the industries, particularly the Government owned sectors. Till such time a policy is framed, we propose that the same remuneration as that of permanent workers be paid to the contract workers as well as outsourced workers.

9. The perks/fringe benefits presently being availed by the workers including private sector workers as incentive be considered for exemption from the taxes.

10. Transport Allowance paid to the Central Government employees including Defence Employees may be exempted from the purview of income tax.

11. Children Education Allowance being re-imbursed to all the employees for their school going children to the tune of Rs.15,000/- per child per year, but the same is being taxed, only a rebate of Rs.40 per annum. Hence, it is requested to exempt the Children Education Allowance from the purview of Income Tax to the full extent of the allowance paid to the employee.

12. For adequate career growth of Teachers and Lecturers of Central Government Institutions particularly in Ordnance Factories, the Modified Assured Career Progression Scheme (MACP) may be made applicable to them.

INDWF is confident that the Hon’ble Finance Minister would give serious consideration to the above proposals for making Budget announcements.

Thanking you,

Yours Sincerely,
(R.SRINIVASAN)
General Secretary.

Action Taken Report (ATR) on the minutes of the 21st meeting of Standing Committee of Voluntary Agencies (SCOVA)

Action Taken Report (ATR) on the minutes of the 21st meeting of Standing Committee of Voluntary Agencies (SCOVA)

F. No. 42/1/2013-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003

Date 6th February, 2013

OFFICE MEMORANDUM

Subject: Action Taken Report (ATR) on the minutes of the 21st meeting of Standing Committee of Voluntary Agencies (SCOVA).

Please find enclosed herewith a copy of Action Taken Report (ATR) on the decisions of the 21 meeting of the Standing Committee of Voluntary Agencies (SCOVA) held on 27’ September, 2012 in New Delhi under the Chairmanship of Hon’ble MOS(PP) for kind perusal.

Enclosure : As above.

( Sujasha Choudhu )
Deputy Secretary (P)

Action Taken Report (ATR) on the minutes of the 21st meeting of Standing Committee of Voluntary Agencies (SCOVA)