Central Government Employees: Challenges before the Seventh Pay Commission

Central Government Employees: Challenges before the Seventh Pay Commission
- by Raj Kumar Ray (Financial Express)

SUMMARY

Growth has fallen in the last couple of years eroding revenue while inflation remains stubbornly high. The new pay commission will have to factor in both concerns

Why does the government appoint a pay commission every decade?

A pay panel is appointed every decade to review and recommend the pay structure for central government employees taking into account various factors such as cost of living, inflation rate, revenue growth and fiscal deficit of the government, growth in workforce, private sector job scenario and wages, and economic growth. The government has so far appointed six pay commissions. The demand for a permanent pay commission set up through an Act of Parliament has been raised once but it was not accepted by the government.

Earlier this month, Prime Minister Manmohan Singh approved the constitution of the Seventh Pay Commission—to be headed by retired Supreme Court judge Ashok Kumar Mathur—to suggest the extent of hike in salaries of the 7-million-plus central government staff and pensioners with effect from 2016. Petroleum secretary Vivek Rae has been appointed as a full-time member, NIPFP director Rathin Roy will be part-time member and Meena Agarwal will be member-secretary of the new pay panel.

How did the process of pay hikes evolved?

The pay panel recommendations have evolved with time. The first central pay commission (CPC) adopted the concept of “living wage” to determine the pay structure of the government staff. The third CPC adopted the concept of “need-based wage”. The fourth CPC had recommended that the government constitute a permanent machinery to undertake periodical review of pay and allowances of its employees, but this was not accepted by the government. The sixth CPC suggested performance related incentive scheme (PRIS) to replace the ad hoc bonus and productivity-linked bonus schemes. The pay panel also suggested that the running pay band be extended to all grades of officers. Also, the sixth pay panel suggested slashing of the number of grades to 20 and one distinct pay scale for secretaries from the 35 existing earlier.

By how much have the public sector salaries increased every decade following the pay panels’ recommendations?

By and large, the salaries of central government staff have tripled every decade. The sixth CPC suggested 3 times increase in salaries from that of fifth CPC levels—it was 2.6 times for lower grade officials and slightly above 3 for higher grade staff. The increase in salary during fifth CPC was 3-3.5 times the fourth CPC levels.

What has been the fiscal implication of pay hikes?

Government finances have come under strain after implementations of each CPC. After the fourth CPC, the combined fiscal deficit of centre and states rose to 9.5% of GDP in FY87 from 7.7% in FY86. The impact was significantly harsh during the fifth CPC, especially for states—the combined fiscal deficit rose from 6.1% in FY97 to 7% in FY98 and then to 8.7% in FY99 with the aggregate deficit of states surging from 2.6% to over 4%.

In the case of the sixth CPC, the government expenditure increased by about Rs 22,000 crore during 2008-09—Rs 15,700 crore on the general budget and Rs 6,400 crore on the rail budget. The Rs 18,000 crore arrears were distributed in two years—40% in FY09 and 60% in FY10. The fiscal implication of sixth CPC coupled with fiscal stimulus in the form of higher spending and tax cuts after the Lehman crisis, increased Centre’s fiscal deficit to 6% in FY09 and 6.5% in FY10 from less than 3% in FY08.

What are the challenges before seventh CPC?

The new pay panel faces many challenges when it starts the process of reviewing the pay structures of babus. First, the economic growth has slowed sharply in the last 10 years—from over 9% between FY06 and FY08 to 4.5% in FY13. This means slower revenue growth and little room for scaling up expenditure on salaries.

Second, the Fiscal Responsibility and Budget Management (FRBM) target has already been revised more than twice after the Lehman crisis and the new target for lowering the fiscal deficit target to 3% of GDP is FY17. This again binds the government to restrict spending on salaries and wages.

Third and the most important factor, inflation has stayed high in the past few years—the CPI inflation (CPI-Industrial Workers and the new CPI) has averaged over 9% in the past eight years, which means cost of living has gone up significantly and hence necessitates higher compensation for workers. The dearness allowance of government staff has already touched 100%, which along with the rise in other allowances have more than doubled salaries since 2006.

Analysts expect the seventh pay panel to suggest 3-3.5 times hike in salaries across various grades from sixth CPC levels apart from a further rationalisation of government staff. Already, direct or permanent jobs in public sector have been shrinking while engagement of contract labour and outsourcing is on the rise. This trend is likely to continue given the fiscal imperatives of the government.

There is a perception that government salaries should rise faster at the higher grades and slowly at the lower grades to keep pace with private sector. It needs to be seen whether the seventh CPC retains the minimum:maximum ratio at sixth CPC level of 1:12. A hike in the ratio should not impinge the fisc much as the top level officials—joint secretaries and above—comprise less than 5% of the overall public sector workforce. The performance related incentives could also be reviewed to retain talent within the public sector. More than the fiscal implication, what matters is the productivity of the public sector. For instance, sluggish clearances needed for large projects have ruined investment and halved the growth rate in last three years. The silver-lining of the next CPC could be that it may boost the services sector growth and help revive the faltering economy from 2016 as higher salaries boost spending on housing, automobiles and consumer electronics.

Source: Challenges before the Seventh Pay Commission
[http://www.financialexpress.com/news/challenges-before-the-seventh-pay-commission/1226949/0]

Guidelines for providing certain facilities in respect of persons with disabilities for efficient performance of their duties

Guidelines for providing certain facilities in respect of persons with disabilities for efficient performance of their duties

No.36035/3/2013-Estt(Res)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training

Dated the 14th February, 2014.
North Block, New Delhi.

OFFICE MEMORANDUM

Subject: Guidelines for providing certain facilities in respect of persons with disabilities who are already employed in  Government for efficient performance of their duties.

The undersigned is directed to enclose a copy of draft guidelines for providing certain facilities in respect of persons with disabilities who are already employed in Government for efficient performance of their duties. It is requested that the draft guidelines may be examined and suggestions, if any, may be sent to this Department before 21 st February, 2014 as the guidelines will be issued very
shortly.

Enclo.: As above.

(G. Srinivasan)
Deputy Secretary to the Government of India

source : DOPT
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02est/18016_3_2011_Estt_L.pdf]

Highlights of Interim Budget 2014-2015

Highlights of Interim Budget 2014-2015

• ONE RANK ONE PENSION ACCEPTED FOR DEFENCE SERVICES.
  
• FISCAL DEFICIT FOR 2013-14 WILL BE 4.6 PERCENT OF GDP. CURRENT ACCOUNT DEFICIT (CAD) WILL BE PEGGED TO$45 BILLION.
  
• FOOD INFLATION STILL THE MAIN WORRY. DECLINES SHARPLY FROM 13.6 PERCENT TO 6.2 PERCENT.
  
• IN THE CURRENT YEAR, AGRICULTURE GROWTH UP AT 4.6 PERCENT.
  
• MERCHANDISE EXPORT  2013-14 $ 326 BILLION, UP BY 6.3 PERCENT.
  
• DEFENCE ALLOCATION UP BY 10 PERCENT.
  
• GOVERNMENT WILL CONTRIBUTE RS. 1000 CRORE TO NIRBHAYA FUND.
  
• BIG EXCISE RELIEF TO AUTOMOBILE AND CAPITAL GOODS INDUSTRY.  ATTEMPTS TO BOOST DOMESTIC PRODUCTION OF MOBILE HANDSETS.
  
• 67 CASES OF ILLEGAL OFF-SHORE ACCOUNTS DETECTED. ACTION UNDERWAY TO DETERMINE TAX LIABILITY. PROSECUTIONS FOR WILLFUL TAX EVASION LAUNCHED IN 17 OTHER CASES.

The Union Finance Minister Shri P. Chidambaram today sought to present UPA Government’s ‘unparalleled’ growth record, rejecting the argument of policy paralysis. He also outlined a vision for the future with ten major tasks that must be undertaken by the Government of the day. Keeping the fiscal deficit at 4.1 percent of GDP and acceding to the long-pending demand of one rank one pension among defence personnel were other key highlights of the Interim Budget presented by him.

The Minister enumerated path-breaking decisions taken by the Government in 2013-14. These include decontrol of sugar, gradual correction of diesel prices, rationalization of railway fare, starting the process for issue of new bank licenses and restructuring of DISCOMS.

Asserting that the economy is more stable today than what it was two years ago, the Minister said that the fiscal deficit is declining, the current account deficit has been contained, inflation has moderated, the quarterly growth rate is on the rise, the exchange rate is stable, exports have increased, and hundreds of projects have been unblocked.

The Cabinet Committee on Investment (CCI) and the Project Monitoring Group were setup. Thanks to the swift decisions taken by them, by the end of January, 2014, the way was cleared for completing 296 projects with an estimated project cost of Rs. 660,000 crore.

Shri Chidambaram stated that decline in GDP observed in the first quarter of 2013-14 will be arrested and the growth cycle will turn in the second quarter. He expressed the confidence that growth in Q3 and Q4 of 2013-14 will be at least 5.2 percent.

The Finance Minister stated that the annual GDP growth in the last ten years of UPA Government has been above the growth rate of 6.2 percent for the last 33 years. While it was 8.4 percent during UPA-I, it was 6.6 percent during UPA-II.

The Interim Budget estimates the plan expenditure in 2014-15 at Rs. 555,322 crore, almost the same as in the previous year. The non-plan expenditure has been raised slightly to Rs. 12,07,892 crore. Fiscal deficit for 2013-14 is likely to be contained at 4.6 percent of GDP and for 2014-15 at 4.1 percent.


PERFORMANCE
The Finance Minister Shri Chidambaram gave examples of fast growth in various sectors in the last ten years. India produces 263 million tonnes of foodgrains now as compare to 213 million tonnes ten years ago. Similar fast growths have taken place in coal production, power capacity and rural roads. Central Government’s expenditure on education has risen to Rs. 79,451 crore as compared to Rs. 10,145 crore ten years back. Expenditure on health has risen to Rs. 36,322 crore from Rs. 7,248 crore in a decade, the Minister said.

Agriculture sector has shown ‘stellar performance’ in 2013-14. Foodgrain production is estimated 263 million tonnes. Production of sugarcane, cotton, pulses, oilseeds and quality seeds has reached new records. Agricultural exports are likely to cross $ 45 billion. Agricultural credit is likely to touch 7,35,000 crore, exceeding the target of Rs. 7,00,000 crore. In the current year, agricultural GDP growth is estimated at 4.6 percent.

Merchandise exports rose by 6.3 percent in 2013-14 to $326 billion.
Eight National Investment and Manufacturing Zones (NIMZ) have been announced and another 5 NIMZ approved in-principle.

Infrastructure has grown by valuable addition to national highways, rural roads, railway tracks and port capacity. Besides, 19 oil and gas blocks were given out for exploration in 2013-14 and 7 new airports are under construction.

MAJOR PROPOSALS
The Government has accepted the principle of ‘one rank one pension’ for the defence forces and has allocated Rs. 500 crore for this purpose.

The target of agricultural credit has been raised to Rs. 8,00,000 crore. The effective rate of interest on farm loans, after interest subvention and incentive for prom payment, has been maintained at 4 percent.

Defence allocation has been enhanced by 10 percent to Rs. 2,24,000 crore. A moratorium period for all education loans taken upto 31.3.2009 has been proposed. It will benefit nearly nine lakh students borrowers by way of reduced interest burden.  Rs. 2,600 crore have been allocated for this purpose.

The Government will contribute Rs. 1000 crore to the Nirbhaya Fund on top of Rs. 1000 crore provided earlier.

Rs. 1200 crore Additional Central Assistance is being provided to the North-Eastern States, Himachal Pradesh and Uttarakhand.

A venture capital fund for Scheduled Castes is proposed to be set up with an initial capital of Rs. 200 crore.

The restructured  ICDS, which is being implemented in 400 districts, will be rolled out in the remaining districts.

Rs. 1000 crore is being proposed to the National Skill Development Cooperation in view of its success in providing skills to the youth.

A VISION FOR THE FUTURE

Among the tasks identified for the health of the economy in the years to come, the Minister called for keeping the fiscal deficit at 3 percent of GDP, promoting foreign investment, keeping inflation at a moderate level, and time- bound implementation of financial sector reforms. He also emphasized the need to rebuild infrastructure and promote manufacturing. Keeping subsidies under check, addressing the decay in cities and skill development will need to be given emphasis. States must share costs of flagship programmes so that more resources can be allocated to defence, railways etc.

REVENUE PROPOSALS

To give relief to automobile industry which is registering unprecedented negative growth, it is proposed to reduce the excise duty for the small cars, motor cycles, scooters and commercial vehicles by 4 percent. It will be cut from 12 percent to 8 percent.

The excise duty on SUVs is proposed to be reduced by 6 percent. From 30 percent to 24 percent.

In case of large and mid-segment cars, it is proposed to reduced excise duty by 3 percent i.e. 27/24% to 24/20%. All these reduced rates will be applicable upto June 30, 2014.

To stimulate growth in capital goods and consumer non-durable, it is proposed to reduce the excise duty from 12 to 10 percent on all goods for a period up to June 30, 2014. It is applicable to all goods falling under Chapter 84 and 85 of the Schedule to the Central Excise Act.

To encourage the domestic production of mobile handsets and reduce the dependence on imports, it is proposed to restructure the excise duty for category of mobile handsets. The rates will be 6 percent with CENVAT credit or 1 percent without CENVAT credit.

To boost domestic production of soaps and oleo chemicals, it is proposed to rationalize the customs duty structure on non-edible grade industrial oils and fractions, fatty acids and fatty alcohols at 7.5 percent.

It is proposed to withdraw the exemption from CVD on similar imported machinery to encourage domestic production of the specified road construction machinery.

The Government has succeeded in obtaining information in 67 cases of illegal Off-shore Accounts and action is underway to determine the tax liability as well as impose penalty. Prosecutions for willful tax evasion have been launched in 17 other cases.

Setting-up a Research Funding Organization that will fund research projects selected through a competitive process. Contributions to that organization will be eligible for tax benefit.

The Direct Taxes code (DTC) is ready and it will be placed on the website for a public discussion. The Finance Minister appeals to all political parties to resolve to pass the GST laws and the DTC in 2014-15.

Central Government Employees for Special concessions/facilities to working in Kashmir Valley

Central Government Employees for Special concessions/facilities to working in Kashmir Valley

 Dopt Orders - Special concessions/facilities to Central Government Employees working in Kashmir Valley in attached/subordinate offices or PSUs falling under the control of Central Government.

No. 18016/3/2011-Estt.(L)
Government of India
Ministry of Personnel, P.G. & Pensions
(Department of Personnel & Training)

New Delhi, the 17th February, 2014.

OFFICE MEMORANDUM

Subject:- Special concessions/facilities to Central Government Employees working in Kashmir Valley in attached/subordinate offices or PSUs falling under the control of Central Government.

The undersigned is directed to refer to this Department’s O.M. No. 18016/3/2011- Estt.(L) dated 27th June, 2012 on the subject mentioned above and to state that it has been decided to extend the package of concessions/incentives to Central Government employees working in Kashmir Valley for a further period of one year w.e.f. 01.01.2013. The revised package of incentives is as per annexure.

2. The package of incentives is uniformly applicable to all Ministries/ Departments and PSUs under the Government of India and they should ensure strict adherence to the rates prescribed in the package. The concerned Ministry/Department may ensure implementation and monitoring of the package in conformity with the approved package, and therefore, all Court cases in which verdicts are given contrary to the package would have to be contested by the Ministries/Departments concerned.

Hindi version will follow

sd/-
(Mukul Ratra)
Director

ANNEXURE to DOPT’ s O.M. No.18016/3/2011-Estt.(L) dt. 17th February, 2014

DETAILS OF PACKAGE OF CONCESSIONS/FACILITIES TO CENTRAL GOVERNMENT EMPLOYEES WORKING IN KASHMIR VALLEY IN ATTACHED/SUBORDINATE OFFICES OR PSUs FALLING UNDER THE CONTROL OF CENTRAL GOVERNMENT.

[Kashmir Valley comprises of ten districts namely, Anantnag, Baramulla, Budgam, Kupwara, Pulwama, Srinagar, Kulgam, Shopian, Ganderbal and Bandipora]

I. ADDITIONAL H.R A. AND OTHER CONCESSIONS :

(A) Employees posted to Kashmir Valley:

(i) These employees have an option to move their families to a selected place of their choice in India at Government expense. T.A. for the families allowed as admissible in permanent transfer inclusive of transportation of personal effects, lump-sum payment for packing etc.

(ii) Departmental arrangements for stay, security and transportation to the place of work for employees.

(iii) HRA as for Class ‘Y’ city applicable for employees exercising option at (i). Such employees will be eligible for drawing the normal HRA as well at their place of posting provided Departmental arrangement is not made for his/her stay.

(iv) The period of temporary duty extended to six months. For period of temporary duty daily allowance at full rate is admissible, apart from departmental arrangements for stay, security and transportation.

(B) Employees posted to Kashmir Valley who do not wish to move their families to a selected place of residence :

A per diem allowance of Rs.10/- is paid for each day of attendance to compensate for any additional expense in transportation to and from office etc. This will be in addition to the transport allowance, which the employee is otherwise eligible for under Ministry of Finance order No. 21(2)/2008-E.II(B) dated 29.08.2008.

II. MESSING FACILITIES :
Messing Allowance to be paid to the employees at a uniform rate of Rs.15/- per day by all Departments, or in lieu messing arrangements to be made by the Departments themselves. This rate of allowance will have to be adhered to uniformly by all the Ministries/Departments with effect from 01.07.1999. The slightly higher rate of Rs.25.50/- adopted by the Department of Telecom and Posts and allowed to be continued as a special case by the Department of Personnel in consultation with the Ministry of Finance, would, however, continue to be paid at the said rate.

III. PAYMENT OF MONTHLY PENSION TO PENSIONERS OF KASHMIR VALLEY
Pensioners of Kashmir Valley who are unable to draw their monthly pensions through either Public Sector Banks or PAO treasuries from which they were receiving their pensions, would be given pensions outside the Valley where they have settled, in relaxation of relevant provisions.

NOTE :-

1. The package of concession/facilities shall be admissible in Kashmir Valley comprising of ten districts namely, Anantnag, Baramulla, Budgam, Kupwara, Pulwama, Srinagar, Kulgam, Shopian, Ganderbal and Bandipora.

2. The package of concessions/facilities shall be admissible to Temporary Status Casual laborers working in Kashmir Valley in terms of Para 5(i) of the Causal Laborers (Grant of Temporary Status and Regularization) Scheme of Government of India, 1993.

3. The benefit of additional HRA admissible under the Kashmir Valley package shall be admissible to all Central Government employees posted to Kashmir Valley irrespective of whether they are natives of Kashmir Valley, if they choose to move their families anywhere in India subject to the conditions governing the grant of these allowances.

4. The facilities of Messing Allowance and Per Diem Allowance shall also be allowed to natives of Kashmir Valley in terms of the Kashmir Valley package.

sd/-
(Mukul Ratra)
Director

Source: www.persmin.nic.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02est/18016_3_2011_Estt_L.pdf]

Dopt issued orders on Lokpal and Lokayuktas (Removal of Difficulties) Order, 2014

Dopt issued orders on Lokpal and Lokayuktas (Removal of Difficulties) Order, 2014

The Lokpal and Lokayuktas (Removal of Difficulties) Order, 2014

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Personnel and Training)
 

ORDER

New Delhi, the 15th February, 2014

S.O. 409(E). - Whereas the Lokpal and Lokayuktas Act, 2013 (1 of 2014) (hereinafter referred to as the said Act) came into force on the 16th day of January, 2014;

And whereas Section 44 of the said Act requires making of a declaration of assets and liabilities by the public servant to the competent authority in the manner provided under the said Act;

And whereas Section 44 of the said Act requires furnishing of information relating to assets and liabilities, (i) by the public servant on the occasion of entering upon office within thirty days from the date of assumption of office, and
(ii) by a public servant holding his office as such within a period of thirty days from the date of coming into force of the said Act;

And whereas Section 44 of the said Act also requires the filing of annual return of such assets and liabilities with the competent authority, on or before the 31st day of July every year; and the competent authority in respect of each Ministry or Department shall ensure such statements are published on the website of such Ministry or Department by the 31st day of August of that year;

And whereas different set of rules such as—

(i) the Central Civil Services (Conduct) Rules, 1964;
(ii) the All-India Services (Conduct) Rules, 1968;
(iii) the Railway Services (Conduct) Rules, 1966,

and other relevant rules exist with respect to public servants on filing of property returns and making of declaration of assets by every public servant which have been framed by the President or the Central Government in exercise of powers under the Constitution or the relevant Acts of Parliament and are being complied with by each and every Government servant;

And whereas the modifications or amendments of the above said rules and other relevant rules in consonance
with the provisions of Section 44 of the said Act will need some time keeping the constitutional and other statutory requirements which are to be followed while modifying or amending of such rules which are in force;

And whereas the amendment of the Central Civil Services (Conduct) Rules, 1964 shall require consultation with the Comptroller and Auditor-General of India as per the constitutional provisions, and in case of the All-India Services (Conduct) Rules, 1968, the amendment or modification of the said rules shall require consultation with the Governments of the States concerned in terms of Section 3 of the All-India Services Act, 1951 (61 of 1951);

And whereas after following the above procedure, it is unlikely and may not be possible to complete the process of harmonising the provisions of section 44 of the said Act with other relevant Acts and the Constitutional provisions within the timeframe provided in Section 44 of the said Act;

And whereas difficulties have arisen in giving effect to the provisions of Section 44 of the said Act and harmonising its requirement with the above referred Constitutional provisions, Acts and the rules made thereunder before the rules are made by the Central Government for prescribing the form and manner of furnishing information and filing of annual returns by public servants under the said Section 44;

Now, therefore the Central Government, in exercise of the powers conferred by sub-section (1) of Section 62 of the Lokpal and Lokayuktas Act, 2013 (1 of 2014), hereby makes the following Order to remove the difficulties in respect of making of declaration of assets by public servants and filing of property returns in terms of Section 44 of the said Act, namely:—

1. Short title and commencement. - (1) This Order may be called the Lokpal and Lokayuktas (Removal of Difficulties) Order, 2014.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. Modification or amendment of relevant rules in consonance with Section 44 of said Act. - (1) The modification or amendment to the relevant rules referred to in this Order shall be carried out within a period not exceeding one hundred and eighty days from the date on which the provisions of the said Act came into force.

(2) The public servants who have filed the declarations, information and returns under the provisions of the
relevant rules shall file revised declarations, information or returns, as the case may be, in compliance of the rules framed under Section 44 of the said Act within the period specified therein.

[No. 407/12/2014-AVD-IV(B)]
DEEPTI UMASHANKAR, Jt. Secy.

Source: www.persmin.gov.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02ser/407_12_2014-AVD-IV-B-15022014.pdf]

Reservation for persons with disabilities- Computation of reservation- Implementation of the SC Judgement: DoPT Order

Reservation for persons with disabilities- Computation of reservation- Implementation of the SC Judgement: DoPT Order

 Reservation for persons with disabilities- Computation of reservation- Implementation of the judgement of Hon'ble Supreme Court in the matter of Union of India & Ann Vs. National Federation of Blind & Ors: DoPT Order

No. 36012/24/2009-Estt.(Res)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

North Block, New Delhi
dated the 14th February, 2014

OFFICE MEMORANDUM

Subject Reservation for persons with disabilities- Computation of reservation- Implementation of the judgement of Hon'ble Supreme Court in the matter of Union of India & Ann Vs. National Federation of Blind & Ors.

The undersigned is directed to refer to this Department's O.M. of even number dated the 3rd December, 2014 on the subject cited above conveying the judgement of the Hon'ble Supreme Court dated 8.10.2013 in the matter of Civil Appeal No.9096 of 2013 (arising out of SLP (Civil) No.7541 of 2009) titled Union of India & Anr. Vs. National Federation of Blind & Ors. and follow up action required to be taken thereon.


All the Ministries/Departments/Organizations were, inter alia, requested to compute the number of vacancies available in all the cadres under their control including attached offices, subordinate offices, public sector undertakings, Government Companies, Cantonment Board, etc. in accordance with the directions of the Hon'ble Supreme Court as per Para 5 of the aforementioned O.M. of this Department and further identify the posts for disabled persons within a period of three months from the date of the judgement of the Hon'ble Supreme Court (i.e. 8.10.2013) and implement the same without default. The National Federation of Blind has filed an application and the Hon'ble Court has directed to file a status report giving details of steps taken to implement the judgement of the Hon'ble Supreme Court including the appointments made, if any. The next date of hearing is 12th March, 2014. A copy of the correspondence received in this regard from the Central Government Standing Counsel is enclosed for reference.


This Department is required to file a status report on the action taken by the Ministries/Departments in connection with the next hearing to be held on 12th March, 2014 It is requested that status report on the action taken by the Ministries/Departments/Organizations may kindly be sent to this Department within a week's time i.e. by 21 st February, 2014 so that a consolidated report could be filed before the next date of hearing.

Sd/-
(Debabrata Das)
Under Secretary to the Government of India

Source: www.persmin.nic.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02adm/36012_24_2009-Estt.Res.-14022014.pdf]

Enhancement of Central Government Employees Group Insurance Scheme (CGEGIS) subscription

Enhancement of Central Government Employees Group Insurance Scheme (CGEGIS) subscription

Enhancement of Central Government Employees Group Insurance Scheme (CGEGIS) subscription to the employees of CGDA.

Controller General of Defence Accounts has issued orders regarding the subscription has been enhanced to Group ‘B’ Sr.Auditors from Rs.30 to Rs.60 per month with effect from 1.1.2014.

One Rank One Pension Accepted by Central Government - OROP

One Rank One Pension Accepted by Central Government - OROP

The Central Government has accepted the principle of ‘one rank one pension’ for the defence forces and has allocated Rs. 500 crore for this purpose.

The Government has allocated Rs. 500 crores to the Defence Pension Account in the current financial year itself for implementation of One Rank One Pension scheme for the Defence Forces of the country. Making the announcement in Parliament today during his Interim Budget Speech, the Finance Minister Shri P. Chidamram said that this decision will be implemented prospectively from the financial year 2014-15. The Finance Minister said the Government had decided to walk the last mile and close the gap for all retirees in all ranks. He said the demand of the Defence Services for One Rank One Pension (OROP) had been there for a long time and had been an emotive issue.

Extract of Budget Speech :

One Rank One Pension

56. Hon’ble Members are aware of the long standing demand of the Defence Services for One Rank One Pension (OROP). It is an emotive issue, it has legal implications, and it has to be handled with great sensitivity. During the tenure of the UPA Governments, changes in the pension rules applicable to the defence services were notified on three occasions in 2006, 2010 and 2013.

As a result, the gap between pre-2006 retirees and post-2006 retirees has been closed in four ranks (subject to some anomalies that are being addressed): Havildar, Naib Subedar, Subedar and Subedar Major. There is still a small gap in the ranks of Sepoy and Naik and a gap in the ranks of Major and above. We need a young fighting force, we need young jawans, and we need young officers. We also need to take care of those who served in the defence forces only for a limited number of years. Government has therefore decided to walk the last mile and close the gap for all retirees in all ranks.

I am happy to announce that Government has accepted the principle of One Rank One Pension for the defence forces. This decision will be implemented prospectively from the financial year 2014-15. The requirement for 2014-15 is estimated at Rs.500 crore and, as an earnest of the UPA Government’s commitment, I propose to transfer a sum of `500 crore to the Defence Pension Account in the current financial year itself.

Source: PIB News

Retirement Age 62 - Proposal for raising Retirement Age to 62 waits for Cabinet Nod

Retirement Age 62 - Proposal for raising Retirement Age to 62 waits for Cabinet NodRetirement Age 62 - Proposal for raising Retirement Age to 62 waits for Cabinet Nod

 We have heard it so many times . Every one of us got tired of hearing this rumour again and again. But this time this news may not fade away just as a rumour.

Because the series of events that had happened until now listed below are telling that it will be come true soon.

1. Though there is no any demand from any corner to raise the retirement age of central government employees to 62 years, a parliamentary panel has recommended a proposal to increase the retirement age of government servants to 65 years. The report of the standing committee of Parliament on social justice and empowerment tabled in the Parliament on 7th of this month. Ample justification also was given for their recommendation to increase the retirement age.

2. A reliable source close to a Cabinet Minister told that, the Cabinet Minister himself, while addressing to the Trade Union Wing of his party told ‘the Central Government would announce some important decisions in respect of central government employees within a week or two. This will be good news for all the central government employees.’

3. A close ally of a Central Minister told that, in a meeting held with the leaders of the state unit of his party day before yesterday, the Minister told the Leaders ‘a proposal of increasing retirement age of central government employees to 62 years has been waiting for Cabinet nod. It is expected that the cabinet will clear this proposal within a week. After it gets the Cabinet Nod, the formal announcement will be made by Central Government before the Election announcement.’

The above information clearly indicates that some Good News for Central Government Employees are waiting to be announced within a week or two. All the central government employees know what that good news is!

 The expected good news will be either increasing retirement age or Merging 50% DA with Basic Pay or Both!

Source: www.gservants.com
[http://www.gservants.com/2014/02/17/proposal-raising-retirement-age-62-waits-cabinet-nod/]

50% DA MERGER OR INTERIM RELIEF FOR CENTRAL GOVERNMENT EMPLOYEES

50% DA MERGER OR INTERIM RELIEF FOR CENTRAL GOVERNMENT EMPLOYEES

As everyone knows the Central Government has constituted the 7th Pay Commission and named its Chairmen recently. The decision of the government to constitute the 7th CPC has triggered many expectations among the central government employees. Among them was the merger of 50% DA with basic pay as done in the 5th CPC. But the 6th CPC did not recommended anything like that. It is understood that the employees are eagerly awaiting for an economic relief from the soaring prices of essential commodities. There are instances of announcing interim relief (I.R) to the employees apart from DA by a newly constitute pay commission prior to their implementations in the past.

 

Let us look into some of them

 

Interim relief prior to Second Pay

1ST PAYCOMMISSION

 

Details of interim relief in the past

Interim relief of Rs 5.p.m was granted by the 2nd pay commission with effect from the 1st july, 1957 to all employees drawing basic pay not exceeding Rs.250 per month.

Pay range	Dearness pay	Dearness allowance	Total of dearness allowance. Dearness pay and interim relief
	Rs	Rs	Rs
Up to Rs 50	20	25	45
Rs.51—— 100	25	30	55
Rs.101—– 150	27.50	32.50	60
Rs.151—– 200	30	35	65
Rs.251—- 300	32.50	37.50	70
Rs.301—- 500	35	35	70

 

Second Pay Commission

IInd Pay Commission

 

Interim relief as on 31.12.1972

Pay range	Dearness allowance	Portion treated as dearness pay	Interim relief
Below Rs.85	71	47	29
Rs.110-149	71	47	41
Rs.150-209	98	70	41
Rs.210-399	122	90	41
Rs.400-499	146	110	50

 

Third Pay Commission 

IIIrd Pay Commission

Interim relief (1.6.1983 and 1.3.1985)

 

Rates of interim relief from 1.6.1983

The staff side of the national council (joint consultative machinery) had raised a demand relating to the parity of scale of pay of central government employees with public sector pay scales and pending acceptance of this demand, an interim relief to all central government employees was sanctioned at the rates indicated below.

	Categories of employees/pay range	Amount of Interim Relief Sanctioned Rs.
i	For employees drawing pay below Rs.300 p.m	50 p.m
ii	For employees drawing pay of Rs.300 and above but below Rs 700 p.m	60 p.m
iii	For employees drawing pay of Rs.700 and above but below Rs 1600p.m	70 p.m
iv	For employees drawing pay of Rs.1600 and above but below Rs 2250 p.m	80 p.m
v	For employees drawing pay of Rs.1600 and above but below Rs 2250 p.m	100 p.m

 

Rates on interim relief from 1.3.1985

The Fourth Pay Commission had recommended an Installment of interim relief at the rate of 10% of the basic pay of the employees subject to minimum of Rs.50 per month to be paid with effect from 1st march 1985.

 

Fourth Pay Commission

IVth Pay Commission

 

Interim relief

First installment of interim relief to the central government employees from 16.9.1993

 

Interim relief of Rs.100/- p.m has been sanctioned to all central government employees w.e.f 16.9.1993.

 

The amount interim relief will neither be termed as ‘pay’ nor ‘allowance’ nor ‘wages’, accordingly this amount will not counted for any service benefit.

 

Second instalment of interim relief from 1st April 1995

The Fifth Central Pay commission have recommended a further instalment of interim relief at the rate of of 10% of the basic pay to the employees subject to minimum of Rs .100 per month to be paid with effect from 1st April, 1995.

 

Third instalment of interim relief from 1st April 1996

The Fifth Central Pay Commission in their interim report have recommended a further instalment of interim relief at the rate of 10% of the basic pay to the employees subject to minimum of Rs .100 per month to paid with effect from 1st April, 1995.

 

Fifth Pay Commission

Vth Pay Commission

 

The Fifth CPC, in para 105.11 of their report had recommended that DA should be converted into Dearness Pay each time the CPI increase by 50% over the base index used by the Pay Commission.

 

Merger of 50% of Dearness Allowance/Dearness Relief with basic pay/pension to Central Government employees/pensioners w.e.f. 01/04/2004.

 

6th Pay Commission

VIth Pay Commission

 The 6th pay commission after its constitution and implementation did not recommended or suggest any kind of interim relief or merging of DA with the basic pay. As of now the DA has touched 100% and its government is unable to satisfy employees. All federation and associations are pressing the government for the merger of 50% DA. They strongly suggest some kind of relief to the employees As the price of essential commodities are in the rise, the government should act now to fullfil the expectation of the employees. The government should come up with merger 50% DA merger or some interim relief to the employees as early as possible.

 

50% DA MERGER OR INTERIM RELIEF - ?

 

 Source: www.govtempdiary.com

[http://www.govtempdiary.com/2014/02/50-da-merge-or-interim-relief-for-central-government-employees/]