7th Pay Commission: Salary rises should be based on performance

7th Pay Commission: Salary rises should be based on performance

New Delhi: The Seventh Pay Commission is likely to recommend to rise the salary of central government employees should be based on performance in the office, rather than just time served.

The central government urged the Seventh Pay Commission to make proposal for enhanced pay and special incentives as performance based annual increments.

Appraisals for government employees were introduced since British period but didn’t affect pay. Eight years ago, the Sixth Pay Commission asked to link the performance of central government employees with their pay.

The Sixth Pay Commission had carried out a study through the Indian Institute of Management, Ahmedabad, on a performance-based incentive system, to ostensibly improve the performance outputs of Central government employees.

The study was aimed at working out a model whereby a base salary is attached to each post based on skills and responsibility and simultaneously, a second component would be payable over and above the salary on the basis of the productivity and performance of employees, either individually or as a group.

The government employees believe pay should reflect the cost of living while private sector workers believe pay should reflect performance.

Accordingly, the Narendra Modi government plans to move towards making increment programmes based on performance rather than on time-served through the Seventh Pay Commission and automatic annual incremental pay progression would be scrapped in central government ministries and departments.

The original idea behind performance incremental pay is that every central government employee takes a while to become fully competent in a role, so government can reward them as they grow in competence and experience.

Despite the government having powers to withhold increments, but nowadays, very few do, so there is a culture of government employees moving up the pay scale irrespective of their performance.

The bottom line is if government doesn’t get rid of automatic incremental progression, the government can’t control pay, and that is what the Modi government has realised.

The central government employees can play a vital role in this way in nation building.

Therefore, the Seventh pay commission may recommend up to 5 percent performance-based increment instead of automatic annual increment for central government employees.

TST

Grant of CSD Canteen Facilities to retired Defence Civilians: CGDA’s instructions

Grant of CSD Canteen Facilities to retired Defence Civilians: CGDA’s instructions

Consequent to the grant of CSD Canteen Facilities to the Defence civilians Pr. Controllers/Controller to nominate an Officer for countersigning the application forms 

Pr. Controllers/Controller to nominate an Officer for countersigning the application forms received from the retired Defence Civilians for grant of CSD Canteen facilities

Pr. Controllers/ Controllers are requested to nominate an Officer not below the rank of an Under Secretary to Govt of India or equivalent for countersigning the application forms received from the applicants of Defence Civilians for grant of CSD Canteen facilities.

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
DEFENCE ACCOUNTS DEPARTMENT

No.AN/VIl/7089/CSD/ Corr

Dated : 21.09.2015

To
    1. All PCsDA/ CsDA
    2. PCA(Fys) Kolkata

Subject: Grant of CSD Canteen Facilities to retired Defence Civilians,
Reference : This office letter of even No dated 14.08/2015

A copy of the DDGCS letter 96301/Q/DDGCS/Policy dated 12.08.2015 regarding CSD Canteen facilities to retired Defence Civilians. is forwarded herewith for information and necessary action. The letter is to be given wide publicity by displaying on the notice boards/ websites.

2. Further, attention is invited to point 7 and 9 of the letter wherein action to be taken on the part of the Department from where the Officer/ employee has retired has been mentioned. The Pr. Controllers/ Controllers are requested to nominate an Officer not below the rank of an Under Secretary to Govt of India or equivalent for countersigning the application forms received from the applicants.

The orders should be promulgated and the details be forwarded to DDGCS, Army Headquarters, New Delhi.

(Sangeet)
Dy.CGDA(AN)

Download Defence Accounts Department No.AN/VIl/7089/CSD/ Corr Dated 21.09.2015

Centre notifies hike in dearness allowance to 119%

Centre notifies hike in dearness allowance to 119%

New Delhi: Centre notified its decision to raise dearness allowance (DA) to 119%, from 113%, benefiting 50 lakh central government employees and 56 lakh pensioners including dependents.

The union cabinet had decided on 9 September, to release an additional instalment of DA and dearness relief (DR) to pensioners with effect from 1 July 2015. Thus, the central government employees as well as pensioners are entitled for DA/DR at the rate of 119% of the basic with effect from 1 July 2015.

“…the President is pleased to decide that DA payable to central government employees shall be enhanced from existing rate of 113% to 119% with effect from 1 July 2015,” the Finance Ministry’s Office Memorandum No.1/3/2015-E-II-(B) dated September 23, said.

According to the official order, the additional instalment of DA payable under these orders shall be paid in cash.

In regard to armed forces personnel and railway employees, separate orders will be issued by the ministry of defence and ministry of railways, it said.

The government has estimated that the combined impact on exchequer on account of both DA and DR would be Rs 4,436.76 crore in the remaining months of the current financial year and Rs 6,655.14 in a year.
The DA rate increase is based on an average of 12-month consumer price index-industrial workers (CPI-IW) from 1 July, 2014 to 30 June, 2015. This is in line with the Sixth Central Pay Commission.
In April, the government had hiked DA by six per cent to 113 per cent of their basic pay with effect from January.

Finance Minister Arun Jaitley said the Seventh Pay Commission will shortly submit its report to the government and will consider this amount of DA in its recommendations. Recently, its term was extended till December 31.

The commission was constituted in February 2014 and was to submit its recommendations within 18 months.

TST

DA Order July 2015 – Finmin issued orders for the payment of DA at 119% from 1.7.2015

DA Order July 2015 – Finmin issued orders for the payment of DA at 119% from 1.7.2015

Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.7.2015

No.1/2/2015-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated: 23rd September, 2015.

OFFICE MEMORANDUM

Subject: Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.7.2015

The undersigned is directed to refer to this Ministry’s Office Memorandum No.1/2/2015-E-II (B) dated 18th September, 2015 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 113% to 119% with effect from 1st July, 2015.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No. 1(3)/2008-E-II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.

4. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

5. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

Sd/-
(A. Bhattacharya)
Under Secretary to the Government of India

Authority: www.finmin.nic.in

DA ORDER 2015 FROM 1.7.2015

IBA’s Circular on Stagnation Increments to Clerical Staff – AIBEA

ALL INDIA BANK EMPLOYEES’ ASSOCIATION
Central Office: “PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001

 

 Circular Letter No.27/148/2015/44

Date 23-9-2015

Dear Comrades,

IBA’s Circular on Stagnation Increments to Clerical Staff

Further to the 10th BP Settlement, some of our units have been seeking clarification on implementation of the provisions relating to sanction of Stagnation Increments. We had taken up the issue with IBA for issuing their Circular to the Banks and accordingly IBA has now issued their Circular No. 1377 dt. 22-9-2015. Copy of the said Circular is furnished herein for the information of our units and for follow up with the respective managements.

With greetings,

Yours Comradely,

sd/-
C.H.VENKATACHALAM
GENERAL SECRETARY

Click to view the order

Seventh Pay Commission to submit report soon

7th Pay Commission to submit report soon

New Delhi: Seventh Pay Commission is ready with its recommendations on revising emoluments for nearly 50 lakh central government employees and 55 lakh pensioners, and will soon submit report to the Finance Ministry.

Earlier in August, the government had extended Commission’s term by another four months till December 31 to give recommendations.

“The Commission is ready with recommendations and the report will be submitted soon,” according to sources.

The Commission, whose recommendations may also have a bearing on the salaries of the state government staff, was given more time by the Union Cabinet just a day before its original 18-month term was coming to an end.

Headed by Justice A K Mathur, the Commission was appointed in February 2014 and its recommendations are scheduled to take effect from January 1, 2016.

The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often states also implement the panel’s recommendations after some modifications.
As part of the exercise, the Commission holds discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as defence services.

Meena Agarwal is the secretary of the Commission. Other members are Vivek Rae, a retired IAS officer of 1978 batch and Rathin Roy, an economist.

The Sixth Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and the fourth from January 1, 1986.

PTI

7th Pay commission likely to introduce health insurance

Seventh Pay commission likely to introduce health insurance

New Delhi: In a move that could benefit more than 50 lakh central government employees and 56 lakh pensioners, the Seventh Pay commission is planning to propose to introduce health insurance scheme to replace Central Government Health Scheme (CGHS) at highly subsidized rates.

The pay panel has already held detailed discussions about this with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services.

The pay panel will ask the central government to urge the insurance industry to come up with feasible health insurance solution for the central government employees and pensioners. The IRDA, the insurance regulatory body of India, will be compelled to ask the health insurance companies to offer a basic insurance to every central government employee and pensioner, regardless of age or medical condition and are not allowed to make a profit off this basic insurance.

The serving central government employees in non-CGHS areas are provided healthcare facilities under the CS(MA) Rules, 1994, but pensioners are not covered under these rules.

The pensioners are, however, entitled to a fixed medical allowance of Rs 500 per month. The pensioners residing in non-CGHS areas have the option to become a CGHS member in any CGHS-covered city of their choice to avail the medical facilities under the CGHS Scheme.

Health insurance would be available for central government employees and pensioners till death, with the insured employees and pensioners will have to pay 50% of the premium from their salaries and pensions and the remaining 50% premium may be paid by the central government.

The health insurance would cover a family of six the employee and pensioner himself or herself, the spouse, two children and two parents. The maximum sum assured for family in a year could up to Rs 5 lakh.

Under the CGHS, the annual per capita expenditure is more than Rs 5,000. In contrast, the National Rural Health Mission (NRHM), which caters to the rural masses, spends just Rs 180 per head.

The CGHS is financed mainly through the Centre’s tax revenues. Though beneficiaries do contribute a share of their wages towards premium, ranging from Rs 600 to Rs 6,000 a year depending on their pay scale, this accounts for just about 5 per cent of the total expenditure. The government shells out the remaining 95 per cent.

So, the central government also wanted for ending the CGHS in its current form and to move to an insurance-based health scheme to cut costs.

TST

Status of MACP in the 7th pay commission

Status of MACP in the 7th pay commission

Newspapers continuously update us with news about the recommendation of the 7th Pay Commission which holds the highest expectation levels at present. From such sources, we come to know that the recommendations of the 7th Pay Commission are going to be submitted on 31st of October and they may come to force from 1/4/2016.

Pay structure is very important and equally important is the promotion policy.

Assured Career Progression (ACP) which was introduced in the 5th Pay Commission, provided some comfort for the employees who suffered from lack of promotions for long years. Before this, promotion was just an illusion. Labour Unions and Federations of the Central government employees got these benefits for us after much struggle.

In the recommendations of the 6th Pay Commission, which came after this, ACP was changed to MACP (Modified Assured Career Progression) and it provided an opportunity for employees who were not promoted for the last ten years to enter the next Grade Pay.

In this, the benefit was very small as 1800, 1900, 2000, 2400, 2800, 4200, 4600, 4800 (excluding 2800-4200). Many issues in this method of Grade Pay still lie unresolved before the National Anomaly Committee.

Hence, lakhs of Central Government employees expect a favourable change in MACP at least through 7th Pay Commission. During his or her service period, an employee must have at least five promotions. This has been an important plea of the Central Trade Unions.

The benefit of the first MACP has to be given after 8 years of continuous service and the benefit of the successive MACP has to be given after 7,6,5 and 4 years of continuous service.

If the benefits of MACP were such, certainly all the central government employees will be highly encouraged and will work hard to make all the Central Government plans and activities a great success.

This will definitely increase the productivity of the Central Government and the associated industries. Due to this, the relationship between the government and the employees will become more harmonious and there will be a peaceful working environment.

Source-http://centralgovernmentemployeesportal.blogspot.in/2015/09/status-of-macp-in-7th-pay-commission.html

50% DA Merger and Retirement age 58 : Rumor Spreading in Social Networks

50% DA Merger and Retirement age 58 : Rumor Spreading in Social Networks

Order for Merger of 50% DA, Retirement age news.

Recently rumour mill went overdrive in social media with the following news that

1. Central Government decided to merge 50% DA with basic pay with effect from 1.1.2015.

2. It went on to say that age of Retirement will be on completion of 33 Years of service or at the age of 58 Years whichever is earlier.

The 7th CPC is expected to submit its report shortly and due to Bihar elections the Central Government cannot take any policy decisions in this regard. Hence it is clarified that none of the above news are correct.

Source: http://karnatakacoc.blogspot.in/

Highlights of 7th Pay Commission Report Spreads on Social Media and Leading Websites

Highlights of 7th Pay Commission Report Spreads on Social Media and Leading Websites

Rumors on 7th Pay Commission Report – Highlights of the report spreads on Social Media and Leading Websites

Photograph of 7th Pay Commission’s Document Spreads like Wildfire on Social Media

“A copy of one of the important letter pertaining to the 7th Pay Commission surfaced in the social media yesterday.”

A crucial document containing the signatures of four members, including the chairman and secretary of the 7th Pay Commission was released on the Social Media, creating a buzz. The document, titled “Report of Seventh Central Pay Commission Highlights” contained the seal of the Central Government, stated that it would be submitted on September 1, 2015. The report showed three pages of the document. At the end of it, there were signatures, along with names and designations of four members of the Pay Commission, including the chairman and secretary.

The document also contained the recommendations of Revised Pay Scale Structure for all groups of Central Government employees. In addition to abolishing the Grade Pay Structure, the new minimum pay scale has been fixed at Rs.21,200. There is also indicated to provide a six percent annual increment.

There is brief information on HRA, CEA, Pay Fixation and Increment. There is no information about the person/s who had released the document. Most importantly, the information provided in the document is hard to believe.

The 7th Pay Commission was all set to submit its report to the Central Government towards the end of September, but the Centre has given it an extension of four more months. According to the government, the decision was made after the committee requested for additional time to prepare the final report.

For the past few weeks, the curiosity of Central Government employees about the recommendations of the 7th Pay Commission has increased. This is reflected by the increased searches on the internet for any information on the new Pay Commission. They are eagerly reading up all kinds of reports, analysis, and comments on the recommendations of the 7th Pay Commission on topics like new pay scale, promotions, and revised allowances. They are also expressing their opinions on such articles.

There is nothing wrong in writing articles about the 7th Pay Commission based on personal opinions and aspirations. But, there is nothing funny about producing a fake document and releasing it on the internet.

Source: http://www.cgstaffnews.in/