DA & Linking Factor : What is expected? : DA Announcement and linking factor explored

DA & Linking Factor  What's expected?  DA Announcement and linking factor explored.

As you all know that DA is calculated based on AICPIN.

AICPIN is calculated based on the inflation and the cost of living in various cities. So, what's going to happen in 7th Pay Commission, let's read.

In Pay Commission III, the base year was used as (1960 =100).
In 4th Pay Commission, the DA was decided to pay twice a year and also for calculating the DA value the percentage increase in the 12 monthly average of All India Consumer Price Index (base 1960). Also the base year was (1982=100) as the base year.

In 5th Pay Commission, the DA was decided based on (1982=100) as the base year.
In 6th Pay Commission, the DA was decided based on (2001=100) as the base year.
In 7th Pay Commission, should we expect to have the base year as (2011=100)?

When the DA calculation change happened from base year 1982 to base year as 2001, there were a steep increase in the DA percentage, this is because the cost of living has increased multifold and also various cities and items was also included while calculating the real DA.

So, what's been recommend in the 7th CPC Report
Keeping in mind that the present formulation of DA has worked well over the years, and there are no demands for its alteration, the Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance and also check out the gazette notification changes where the linking factor has been included as on AICPIN value as 2016.

IV. Dearness Allowance

Sl.No.	Recommendation of the Seventh Central Pay Commission	Decision of the Chief Justice of India
1.	Existing formula and methodology for calculating Dearness Allowance to continue (Para 8.17.37 of the Report)	Accepted. The reference base for calculation of Dearness Allowance after coming into force of the revised Pay Structure shall undergo change accordingly and will be linked to the average index as on 01.01.2016

Though in (2001=100) the linking factor was 4.63, this lead to the calculation of DA with the average index as 115.76 as per 2005. For example, (2005 , 12 Month Average Index  536, so the linking factor as per record was 4.63).

All India and Centre-wise Linking factors between New Series of Consumer Price Index Numbers for Industrial Workers on base 2001 = 100 and the previous series on base 1982=100 (General Index).

Table No. 9.01

GROUP WISE LINKING FACTORS BETWEEN CURRENT SERIES OF ALL INDIA CONSUMER PRICE INDEX NUMBERS

FOR INDUSTRIAL WORKERS ON BASE: 2001 = 100 AND THE PREVIOUS SERIES ON BASE: 1982 = 100

	Group	Linking Factor
I-A	Food Group	4.58
I-B	Pan. Supari, Tobacco & Intoxicants	6.16
II	Fuel & Light	4.77
III	Housing	6.18
IV	Clothing. Bedding & Footwear	3.22
V	Miscellaneous	4.55
	GENERAL INDEX	4.63

Note: Figures on previous base 1982 = 100 can be obtained by multiplying the Index Number on current base 2001 = 100 by the linking factor and rounding off the result to the nearest whole number.
As you all now understand that the linking factor play a major role in getting the DA value, but the linking factor for year 2016 .

I was not able to find this data in Labour Bureau . We assume that if the linking factor of 2016 used, then we expect to get a higher DA percentage (assumption). This means it would be a real DA value as it would include various cities and the current inflation and CPI.

We hope that when the results are out they would be using the linking factor of 2016 as the gazette notification has this mentioned. Normally the DA announcement is release in September 1st week or 2nd week and hope this is announced shortly.

Source :  7thpaycommissionnews.com

PLB to Railway staff will be disbursed before Pooja Festival

PLB to Railway staff will be disbursed before Pooja Festival

The Addl. Member Staff Railway Board, Shri Anand Mathur, has intimated today, i.e. 26.09.2016, AIRF leadership that, Railway Board's orders for Restructuring of Technicians, to which an agreement was arrived at in Full Board Meeting held on 22.07.2016, will be issued in this week, and payment of 78 day PLB @ Rs.7000 p.m. will be made to all the Group C and D railwaymen well before Pooja Festival.

Source: AIRF

IPS (Pay) Rules, 2016

IPS (Pay) Rules, 2016

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSION

(Department of Personnel and Training)

NOTIFICATION

New Delhi, the 23rd September, 2016

G.S.R. 910(E). In exercise of the powers conferred by sub-section (1) of section 3 of the All India Services Act, 1951 (61 of 1951) and in supersession of the Indian Police Service (Pay) Rules, 2007, except as respects things done or omitted to be done before such supersession, the Central Government after consultation with the Governments of the States concerned, hereby makes the following rules namely:

1. Short title and commencement. (1) These rules may be called the Indian Police Service (Pay) Rules, 2016.

3. Levels in Pay Matrix and appointment in these Levels : (1) Pay Matrix: The level of pay in the Pay Matrix admissible to a member of service which shall be deemed to have come into force from the 1st day of January, 2016 shall be as follows :

(a) Junior Scale Level 10 in the Pay Matrix
(b) Senior Scale

(i) Senior Time Scale Level 11 in the Pay Matrix
(ii) Junior Administrative Grade Level 12 in the Pay Matrix
(iii) Selection Grade Level 13 in the Pay Matrix

(c) Super Time Scale

(i) Deputy Inspector General of Police Level 13A in the Pay Matrix
(ii) Inspector General of Police Level 14 in the Pay Matrix

(d) Above Super Time Scale

(i)Additional Director General of Police Level 15 in the Pay Matrix
(ii) HAG + Level 16 in the Pay Matrix
(iii) Apex Scale Level 17 in the Pay Matrix

ILLUSTRATIONS: (1) Bunching of stages in the revised pay structure: If two members of Service drawing pay of Rs. 53,000 and Rs. 54,590 in the GP 10000 are to be fitted in the new pay matrix, the member of Service drawing pay of Rs. 53,000 on multiplication by a factor of 2.57 will expect a pay corresponding to Rs. 1,36,210 and the member of Service drawing pay of Rs. 54,590 on multiplication by a factor of 2.57 will expect a pay corresponding to Rs. 1,40,296. Revised pay of both should ideally be fixed in the first cell of level 14 in the pay of Rs. 1,44,200 but to avoid bunching the member of Services drawing pay of Rs. 54,590 will get fixed in second cell of level 14 in the pay of Rs. 1,48,500. [Proviso under rule 4(A)(ii)] (2) Additional increment for stagnation at the maximum of the Pay Band and Grade Pay or Scale:

Pay Band and Grade Pay or scale	PB-4 (37400 to 67000), GP 10000	HAG (67000 to79000)
Maximum of the applicable Pay Band and Grade Pay or scale	77000	Rs. 79000
Date on which pay fixed at maximum of the applicable Pay Band and Grade Pay or scale	01.07.2014	01.07.2013
Revised Pay in the applicable Level in the new Pay Matrix	199600	205100
No. of years completed at maximum as on 01.01.2016	1 year and 6 months	2 years and 6 months
No. of Increment (s) to be granted on 01.01.2016	Nil	01
Revised Pay after grant of increment on 01.01.2016	199600	211300

After fixation of pay on 01.01.2016 as indicated above, the date of increment shall be regulated as per the provisions of Rule 8 of IPS(Pay) Rules, 2016. [Proviso under rule 8(1)(b)]

Click to see the full notification

Extending CGHS facilities to Postal Pensioners

7th Pay Commission recommendation on CGHS to Postal Pensioners, NFPE writes to Got on Extending CGHS facilities to Postal Pensioners

National Federation of Postal Employees
1st Floor North Avenue Post Office Building, New Delhi 110 001
Ref: PF/CGHS/Pensioners

Dated: 23.09.2016

To
Shri B.V.Sudhakar
Secretary
Department Of Posts
Dak Bhawan, New Delhi 110 001

Sir,
Sub: Extending CGHS facilities to Postal Pensioners reg.

As you are aware, now the postal pensioners are not extended the facilities under CGHS. We have been taking up the case with the Government and also with the Department of Posts, but till date no favourable orders have been issued. In Kerala Postal Circle CGHS facility is extended to all postal pensioners also as per the judgment delivered by the Hon'ble High Court of Kerala, Ernakulam.

We have submitted memorandum to chairman 7th CPC also appealing to Consider out request judiciously and favourably. Fortunately, the 7th CPC has given the following favourable recommendations in its reports submitted to Government on 19.11.2015.

Para 9.5.18 (ii)
The commission recommends that remaining 33 Postal Dispensaries should be merged with CGHS. The Commission further recommends that all postal pensioners, irrespective of their participation in CGHS while in service, should be covered under CGHS after making requisite subscription.

In view of the above unambiguous recommendation of the 7th CPC and also the judgment of the Kerala High Court which already stands implemented in Kerala State, I request you to take up the case with appropriate authorities so that orders will be issued at the earliest extending the facilities of CGHS to all postal Pensioner and thereby ending the suffering of lakhs of postal pensioners.

Yours faithfully,
(R.K.Parashar)

Secretary General

Source: NFPE

Railway Bonus : Centre May Announce 78 Day Wages As Bonus

Good News For Railwaymen: Centre May Announce 78 Day Wages As Bonus
Ahead of the festive season, railway employees are likely to get 78 day wages as bonus this year, the same as in the last four years despite the financial crunch.

We have demanded 78 day wages as productivity linked bonus (PLB) for railway employee this year and expecting the government to declare the same next week,"National Federation of Indian Railwaymen General Secretary M Raghavaiah told Press Trust of India.

Productivity linked bonus is paid to about 12 lakh railway employees each year before the Dussehra festival.
Mr Raghavaiah said the 78 day wage is expected to be around Rs. 18,000 per employee. In 2011-12, 2012-13, 2013-14 and 2014-15 also, 78 day wages were also given as PLB to railway employees.
Facing a shortfall of about Rs. 10,000 crore in the earnings due to slowdown in loadings and drop of passengers in short train journey, the railways will get the cabinet approval for the 78 day bonus proposal next week.

The bonus decision is expected to cost the railways about Rs. 2000 crore.

All-India Railwaymen’s Federation General Secretary Shiv Gopal Mishra said the bonus is expected to motivate the employees to improve the financial position of the public transporter.

Mr Mishra said, "Since the PLB ceiling has been revised to Rs. 7000 from Rs. 3500, we expect each employee will get double the amount as against the last year’s bonus."

Last year, the minimum bonus paid was Rs. 8,975 per employee.

PLB covers all non gazetted railway employees (excluding RPF/RPSF personnel) spread over the entire country.

Source : NDTV

Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

The Sources Close to the Ministry of finance informed that there is proposal to Pay 1% DA from July as an interim Measure.It is said that the Central Government has not yet decided about the DA rates in Revised Pay scale.

Sources close to Finance Ministry told that the initial installment of DA to central government employees on the revised pay structure w.e.f 1.7.2016 is under consideration. Mean time there is a proposal to pay the DA from July 2016 at the rate of 1% to all CG Staffs. It will be a shocking news for CG Staff, since they are already expecting 2 to 3% DA from July 2016.

PRU is asked to submit Financial Implication of 1% DA

But the fact is the Department of Expenditure has directed the PRU of the Finance Ministry to furnish the details of additional Financial Implications for 1% increase of DA with effect from 1.7.2016 on the revised Pay Structure.

Further the Pay Research Unit has been requested to furnish financial implications for the Period of July 2016 to February 2017 on account of granting 1% DA from July 2016 to all central government employees including Armed Forces and UT Employees.

According to the above information, it is believed that announcement of 1% DA for July installment may be made any time soon.

Source: http://govtstaffnews.in/

Government Notification of 7th Central Pay Commission Recommendations Fixation of pay and arrears

Government Notification of 7th Central Pay Commission Recommendations Fixation of pay and arrears

No. Pay/Tech-01/7thCPC I

Dated: 21/09/2016

(All Cs FA)

Subject: Government Notification of 7th Central Pay  Commission Recommendations Fixation of pay/arrears.
Ref: (i) This office circular of even No. dated 11 Aug, 2016.

Please refer to this office Part I office order No. AT/02 circulated vide No. Pay/Tech 01 /7th CPC I dated 11.08.2016 through which a copy of CGDA New Delhi No. AT/II/2701/0rders dated 10 Aug, 2016 has been forwarded for necessary action.

2. It has been stated therein to ensure completion of post audit of fixation of pay/arrear claims within 3 months and the work relating to post audit should be monitored at PCsDA/CsDA level by instituting suitable reporting system for watching the progress of work. A Monthly Report in this regard in a format prescribed therein is required to be furnished to Headquarters office so as to reach by 15th of every month. The first report showing the position as on 31.08.2016 was due to reach HQrs office by 15th Sep, 2016. Kindly confirm its timely submission to HQrs office. Also please forward a copy of the said report to this office for our record & reference.

3. Please ensure submission of the report for the subsequent months within scheduled date with a copy endorsed to this office.

4. Please acknowledge receipt.

Sd/-
Astt. Controller of Accounts (Fys)

Source : http://pcafys.gov.in/

Understanding Minimum Wages and Bonus: Government Employees

Government Employees: Understanding Minimum Wages and Bonus

Press Information Bureau
Government of India
Ministry of Labour & Employment

A minimum wage is the lowest remuneration that employers may legally pay to workers or it is the price floor below which workers may not sell their labour.

The concept of minimum wages first evolved with reference to remuneration of workers in those industries where the level of wages was substantially low as compared to the wages for similar types of labour in other industries. As far back as 1928, the International Labour Conference of International Labour Organization, at Geneva, adopted a draft convention on minimum wages requiring the member countries to create and maintain a machinery whereby minimum rates of wages can be fixed for workers employed in industries in which no arrangements exist for the effective regulation of wages and where wages are exceptionally low. Also, at the Preparatory Asian Regional Labour Conference of International Labour Organisation held at New Delhi in 1947 and then at the 3rd session of the Asian Regional Labour Conference, it was approved that every effort should be made to improve wage standards in industries and occupations in Asian Countries, where they are still low. Thus, the need of a legislation for fixation of minimum wages in India received an impetus after World War II, on account of the necessity of protecting the interest of demobilized personnel seeking employment in industries.

The justification for statutory fixation of minimum wage is obvious. Such provisions which exist in more advanced countries are even necessary in India, where workers organizations are yet poorly developed and the workers bargaining power is consequently poor.

To provide for machinery for fixing and revision of minimum wages a draft Bill was prepared and discussed at the 7th session of the Indian Labour Conference in November, 1945. Thereupon the Minimum Wages Bill was introduced in the Central Legislative Assembly. The Minimum Wages Bill having been passed by the Legislature received the assent on 15th March, 1948. It came on the Statute Book as the Minimum Wages Act, 1948.

The Act provides for fixation by the appropriate Governments of minimum wages for employments covered by Schedule to the Act. The Central Government is the appropriate Government in respect of 45 scheduled employments in the Central Sphere. The minimum wages fixed for Central sphere are applicable to the scheduled employments in the establishments under the authority of Central Government, railway administrations, mines, oil-fields, major ports or any corporation established by a Central Act. Employments other than the scheduled employment for Central Sphere come under the purview of the State Government and accordingly State Government wages are applicable in such employments. The minimum wages for Central Sphere are revised from time to time based on the increase in Consumer Price Index effective from April and October.

According to Section 3(1)(b) of the Minimum Wages Act, 1948, the appropriate government shall review at such intervals, as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates if necessary.

The norms recommended by the Indian Labour Conference, in 1957, fox fixing the minimum wages are: (a) consumption units for one wage earner; (b) minimum food requirements of 2700 calories per average Indian adult; (c) clothing requirements of 72 yards per annum per family; (d) rent corresponding to the minimum area provided for under Government's Industrial Housing Scheme; and (e) fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage.

In 1991, the Hon'ble Supreme Court delivered a historic judgement and directed that children's education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage.

The Act envisages appointment of an Advisory Board, by the appropriate Government, for the purpose of advising the appropriate Government in the matter of fixing and revising minimum rates of wages.

The Central Government revises the wages in the scheduled employments from time to time in accordance with the provisions of the Minimum Wages Act, 1948. Draft Notifications for all the Scheduled Employments in the Central Sphere were issued on 1st September, 2016 simultaneously, in fact for the first time. The basic rate of minimum wages for an unskilled worker in the scheduled employment other than agriculture has been proposed at Rs.350 in Area 'C' from the current minimum wage (basic wage + variable dearness allowance) of Rs.246 resulting in an increase of about 42%. The basic rate of minimum wages for an unskilled worker in the scheduled employment 'agriculture' has been proposed at Rs.300 in Area 'C' from the current minimum wage (basic wage + variable dearness allowance) of Rs.211 resulting in an increase of about 42%.

The proposed revision in the rates of basic minimum wages would indeed provide much needed solace to the labour fraternity.

Bonus

Bonus payment is an extra payment given for doing one's job well also known as performance related pay or pay for performance.

The practice of paying bonus in India appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917. In certain cases of industrial disputes demand for payment of bonus was also included. In 1950, the Full Bench of the Labour Appellate Tribunal evolved a formula for determination of bonus. A plea was made to raise that formula in 1959. At the second and third meetings of the eighteenth Session of Standing Labour Committee (G.O.I) held in New Delhi in March/ April 1960, it was agreed that a Commission be appointed to go into the question of bonus and evolve suitable norms. A Tripartite Commission was set up by the Government of India to consider in a comprehensive manner, the question of payment of bonus based on profits to employees employed in establishments and to make recommendations to the Government. The Government of India accepted the recommendations of the Commission subject to certain modifications. To implement these recommendations the Payment of Bonus Act, 1965 was enacted, which came into force on 25.9.1965.

The objective of the Payment of Bonus Act, 1965 is to provide for the payment of bonus to the persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matter connected therewith.

It applies to (i) Every Factory; and (ii) Every other establishment in which 20 or more persons are employed on any day during an accounting year subject to the exemptions under section 32. Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year. While the minimum bonus is 8.33% of the salary or wage earned by the employee during the accounting year, the maximum bonus is 20% of such salary or wage.

Two ceilings are available under the said Act generally known as eligibility limit and calculation ceiling respectively. Clause 13 of Section 2 of Payment of Bonus Act, 1965 defines an employee based on salary or wage per mensem. This is usually taken as the 'eligibility limit' for computation of bonus. Similarly, Section 12 of the Payment of Bonus Act, 1965 provides for calculation of bonus of an employee based on salary or wage per mensem. This is known as 'calculation ceiling'.

The two ceilings are revised from time to time to keep pace with the price rise and increase in the salary structure. At present, the calculation ceiling has been enhanced to Rs.7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher and the eligibility limit has been enhanced to Rs.21,000/-.

Due to this revision, additional 55 lakh workers would be benefited. This would indeed, be a good gesture on the part of the Government towards the labour fraternity.

Source : PIB

Accumulation of NFIRs PNM Items due to non finalization

Accumulation of NFIRs PNM Items due to non finalization

No. NFIR/PNM/108

Dated: 22/09/2016

The Mernber Staff,
Railway Board,
New Delhi

Dear Sir,

Sub: Accumulation of NFIRs PNM Items due to non finalization - reg.

NFIR sends herewith a list containing 12 PNM Items which are pending from the year 2011 to 2016. Most of the items are relating to grant of financial upgradation under MACPS. Although it was agreed to arrange meeting at the level of MS & FC on MACPS issues, no such meeting has been convened and on the other hand, the issues have not been resolved through discussions with the Federation.

Federation is afraid that the number of pending items will continue to grow, if Board does  not devote for setting the issues through mutual discussions.

NFIR, therefore, requests the Railway Board (MS) to kindly see that speedy action is taken on all pending PNM items. Federation will be ready to discuss on dates convenient to both.

DA/As above

Yours faithfully,
(Dr.M.Raghavaiah)
General Secretary I

Source: NFIR

Scheme for Promotion of Adventure Sports & Similar Activities amongst Central Government Employees, Calendar of Programme to be conducted by Nehru Institute of Mountaineering, Uttarkashi

No.125/1/2015-16-CCSCSB
Government of India
Ministry of Personnel, Public Grievances & Pensions
(Department of Personnel & Training)

Lok Nayak Bhawan, New Delhi
Dated 22nd September, 2016.

OFFICE MEMORANDUM

Sub: Scheme for Promotion of Adventure Sports & Similar Activities amongst Central Government Employees, Calendar of Programme to be conducted by Nehru Institute of Mountaineering, Uttarkashi.

The undersigned is directed to refer to the Department of Personnel & Training Office Memorandum of even number dated 26th April 2016 regarding Scheme for Promotion of Adventure Sports & Similar Activities amongst Central Government Employees. The same may be seen at www.persmin.nic.in-Welfare-sports-general/recent circulars miscellaneous.

2. The Department of Personnel & Training has approved the following programme under the Scheme to be conducted by Nehru Institute of Mountaineering, Uttarkashi during November, 2016 to January, 2017:

S. No	Programme	Duration	Fee
1.	Mountain Craft, Trekking, Skiing, Adventure Courses	20 Nov 30 Nov 2016;	Rs. 1100/- per day plus 15% service tax*
		20 Dec 30 Dec 2016;
		31 Dec 16 to 10 Jan 2017

*Fee includes a wholesome and nutritious veg/non-veg meal, accommodation, equipment(less trekking shoe, socks, goggles, head gear), instructors, expenditure on porters, medical support and transportation within general area Uttarkashi.

3. The content of the courses are as under:

(a) Physical fitness training	(b) Multipurpose Obstacle
(c) Sports Climbing (Difficulty & Speed)	(d) Trekking on uneven routs
(e) Bouldering	(f) Anchoring & belaying
(g) Rappelling	(h) Jummaring
(i) Rock Climbing/Rock Craft	(j) Rope Knots, Coiling & Roping u
(k) Mountain Stream Crossing	(l) Lectures on adventure aspects
(m) Outdoor Camping	(n) Camp Cooking

4. The interested Government Employee may approach Registrar, NIM, Uttarkashi (01374-222123, 09411532901) or Training Clerk, NIM, Uttarkashi (01347-223580, 09412323226) and submit his/her application directly to them and a copy of the same endorsed to Secretary, CCSCSB, Lok Nayak Bhawan, Khan Market, New Delhi with Bank Details (Name of Bank, Account Number, Branch Name and IFSC Code) for smooth reimbursement of claim after completion of program.

5. In view of the above, it is requested that the contents of the Scheme (copy enclosed) may please be disseminated amongst the employees who are eligible to avail the benefits of the Scheme and encourage to participate in the Scheme.

(Md.Nadeem)
Under Secretary to the Govt. of India.

To
Director/Deputy Secretary (Administration) of all Ministries/Departments.

Source: ccis.nic.in