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Tenure of 7th Pay Commission extended for four more months – Union Cabinet approved the extension of tenure of 7th CPC up to 31.12.2015

 

Press Information Bureau

Government of India

Cabinet

26-August-2015 18:51 IST

Extension of the term of the 7th Central Pay Commission

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for the extension of the term of the 7th  Central Pay Commission by four months up to 31.12.2015.

 

Background:

The 7th Central Pay Commission was constituted by the Central Government on 28.2.2014. According to the Resolution dated 28.2.2014, by which the Commission was constituted, it is to make its recommendations within 18 months of the date of its constitution that is by 27th August, 2015.

In view of its volume of work and intensive stake-holders’ consultations, the 7th Central Pay

7th Pay commission is not going to recommend lowering the retirement age – Reports

7th pay commission will submit its report by the end of September

The Vth CPC, headed by justice A.K. Mathur, has sought a one-month extension from the finance ministry and is preparing to submit its report by the end of September. The commission is unlikely to recommend the lowering of the retirement age as rumoured earlier or push for lateral entry and performance-based pay.

The commission, set up once in every 10 years to review pay, allowances and other benefits for central government employees, was appointed by the previous government on 28 February 2014 and was asked to submit its report in 18 months, which falls on 31 August.

“There are some data points that are missing, which we hope to get by this month end. We are trying to submit the report by 20 September,” an official of the commission said, speaking on condition of anonymity.

The Sixth Pay Commission had submitted its report a little ahead of its deadline on 24 March 2008. The revised pay scales were implemented retrospectively starting 1 January 2006, while recommendations relating to allowances were implemented prospectively.

The finance ministry apprehends that salary and pension expenditure will both rise by around 16% in 2016-17 as a result of the implementation of the Pay Commission recommendations. This may allow capital expenditure to grow by no more than 8% during the year, leaving little room to aggressively push for an infrastructure build-up.

“The Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will also be spanning out in this period. Thus, in the medium-term framework, the fiscal position will continue to be stressed,” the finance ministry said in the 2015-16 budget presented in February.

The official cited earlier said the Pay Commission report needs to be effective from 1 January 2016, or by April 2016 at the latest.

“It will be the government’s prerogative when to implement it. But beyond 1 January 2016, there will be arrears. But then, the government will be subject to criticism. Earlier, they had hidden behind Pay Commissions giving late reports,” he added.

However, the official said the commission is likely to maintain the status quo on the retirement age of CG employees, currently 60 years. “We are not going to either recommend lowering or raising the retirement age. If we lower the age limit, the pension burden will bust the government’s medium-term fiscal targets,” he added.

Asked whether government has sent any directives to the commission on the kind of hike it can afford, the official said the message it has got broadly is to keep the hikes low. “Merge the basic with dearness allowance, don’t stretch it beyond—that is the message. But that is a good message for the government to send. But there is no pressure otherwise. In fact, there is a lot of cooperation,” he said.

The official said merging basic pay with dearness allowance, which is mandatory, would itself mean a 155% rise for central government employees. “We have to decide how much to give above that. So, it will look good if you compare basic to basic,” he added.

On whether the commission will recommend performance-based pay bands, he said it will make some feasible recommendations, though he couldn’t guess if the government would accept them. The Sixth Pay Commission had also recommended performance-based pay revisions, but the government is yet to implement them.

“Eighty-eight percent of central government employees are industrial and non-industrial workers working with railways, post, paramilitary and army. So, performance-based pay revision is the wrong instrument for them. Biggest growth in government services is in paramilitary forces, where staffs in Central Reserve Police Force and Central Industrial Security Force have gone up by 75-80% in the last 10 years. By the time we have dealt with them, the bureaucracy is an afterthought. It does not affect anything,” he added.

D.K. Joshi, chief economist at rating agency Crisil Ltd, said the government is expected to be restrained in its pay hikes this time around, given the low inflation level and tepid growth momentum. “The last two Pay Commissions had significantly bumped up demand and fiscal deficit. But the government is unlikely to be populist this time. It has already showed restraint in the hike in minimum support prices for farmers,” he said.

However, Joshi said the Pay Commission will have a permanent income effect as well as a one-time impact through the payment of arrears, which will lead to increase in demand for consumer durables.

Source : Livemint.com

Report of Seventh Pay commission will be submitted by second week of September 2015

The Hindi daily Dainik Baskar quoted in its report published on 22.8.2015 about report of Seventh pay commission that the pay commission report will be submitted by second week of September 2015,

According to its report the Seventh Pay Commission report to be submitted to the government will be examined by  the senior CoS, which will take two months. Then it will be submitted to the Ministry of Finance, which will be  implemented from 1st  January, 2016,

According to sources the fitment formula 2.86 would be recommended by 7th pay commission.

The report published in Hindi is given below… 

7वें वेतनमान में दोगुना हो सकता है वेतन

सातवें वेतन आयोग की रिपोर्ट सरकार के सौंपे जाने के बाद वरिष्ठ सचिवों की समिति इसका परीक्षण करेगी, जिसमें दो महीने का समय लगेगा। इसके बाद इसे वित्त मंत्रालय को सौंपा जाएगा, जिसे वह अगले साल 1 जनवरी 2016 से लागू करने हरी झंडी देगा, इसे जस का तस मौजूदा वेतन का 2.86 गुना बढ़ाया जाने पर सरकार पर 1 लाख 28 हजार करोड़ रुपए का अतिरिक्त भार आएगा। इधर केंद्रीय अधिकारी कर्मचारियों के संगठन ने सरकार को चेतावनी भी दे दी है कि यदि सेंट्रल-पे- कमीशन (सीपीसी) की रिपोर्ट में ज्यादा कटौती होती है तो वे हड़ताल पर भी जाने का कदम उठा सकते हैं।

सातवें वेतन आयोग से केंद्र सरकार कर्मचारियों की तनख्वाह दोगुनी होने की संभावना है। आयोग की रिपोर्ट सितंबर के दूसरे सप्ताह में केंद्र सरकार को सौंपी जाना है। केंद्र सरकार के 55 लाख कर्मचारियों में से एक लाख मप्र में कार्यरत हैं। नया वेतनमान 1 जनवरी 2016 से लागू होना है। सूत्रों के अनुसार सातवें वेतन आयोग में ग्रेड-पे को खत्म किया जा रहा है, जिसके स्थान पर 15 नए स्केल बनाए जा रहे हैं। इन स्केल में वेतनमान रहेंगे और उस पर महंगाई भत्ता देय होगा। इसी के अनुसार अन्य सुविधाओं मकान भाड़ा और परिवहन भत्ता दिया जाएगा। फिलहाल लागू छठे वेतनमान में कर्मचारियों की 33 साल की सेवा पूरी होने के बाद रिटायरमेंट का फार्मूला लागू है। इसके पीछे कर्मचारियों को रिटायरमेंट पर साढ़े सोलह महीने के वेतन के बराबर ग्रेच्युटी का भुगतान किया जाना है। इस सेवा के बाद कर्मचारी पूरी पेंशन का हकदार होता है। इसे सातवें वेतनमान में भी लागू किया जाना प्रस्तावित है।

अभी सीपीसी की रिपोर्ट सरकार को सौंपी जाना है, उस पर वरिष्ठ सचिवों की समिति विचार करेगी। इसके बाद इसे अंतिम रूप दिया जाएगा। इसमें जो भी विसंगति होगी, उस पर चर्चा करेंगे। – केकेएन कुट्टी, अध्यक्ष, केंद्रीय कर्मचारी परिसंघ

यह है प्रस्तावित स्केल

छठे वेतनमान ग्रेड-पे पे- बैंड (मूल वेतन) सातवां वेतनमान ( प्रस्तावित)

पीबी-1 में 2400 से 2800 रुपए ग्रेड-पे 5200-8650 रुपए तक 21000- 46000 रुपए

पीबी-2 में 4200 से 5400 रुपए ग्रेड-पे 9300- 15600 रुपए तक 56000 – 78000 रुपए

पीबी-3 में 5400 से 7600 रुपए ग्रेड-पे 15600-21900 रुपए तक 88000- 1,20000 रुपए

पीबी-4 में 8900 से 10,000 रुपए ग्रेड-पे 37400-43000 रुपए तक 1,48000 -1,62000 रुपए

एचएजी 75500 से 80,000 रुपए तक 1,93000 रुपए

अपेक्स स्केल 80,000 रुपए फिक्स्ड 2 ,13000 रुपए

कैबिनेट सेक्रेटरी 90,000 रुपए फिक्स्ड 2,40000 रुपए

नोट : फिलहाल अधिकारी-कर्मचारियों को मूल वेतन, ग्रेड-पे पर 113 प्रतिशत डीए, एचआरए एवं ट्रांसपोर्ट अलाउंस मिल रहा है। इसके अलावा 6 प्रतिशत डीए जुलाई का बकाया है।

 

Source: Dainik Bhaskar

Bank Holidays on 2nd and 4th Saturdays – Notification issued

Finance Ministry has instructed RBI and IBA to declare  2nd and 4th Saturday as Holidays for Banks with effect from 1.9.2015, in line with the Agreement signed between IBA and Bank Employees Unions. This is applicable to banks In India, whether or not such banks are Included In the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934)

Banks will be closed on 2nd and 4th Saturdays from 1st September 2015 as per the Wage Negotiation Agreement

Ministry of Finance has announced that as per the Wage negotiation  between IBA Workmen Unions and Officers’ Association – 10th BPS – 2nd and 4th Saturday are declared as Holidays for Banks with effect from 01.09.2015.

F.No.4/1l7/2015-IR

Government of India

Ministry of Finance

Department of Financial Services

Jeevan Deep, IIIrd Floor,

Parliament Street. New Delhi

Dated the August 20. 2015

To

1. Dy. Governor,

Reserve Bank of India.

Central Office,

Mumbai.

2. Chief Executive,

Indian Banks’ Association,

Mumbai.

Subject: Wage Negotiation between IBA Workmen Unions and Officers’ Association – 10th BPS – 2nd and 4th Saturday as Holidays

Sir,

I am directed to refer to IBA’s letter No. HR&IR/XBPS/3/975 dated 25th June, 2015 and RBI’s letter No.DBR(Leg.)No.953/09.04.022/2015-16 dated 15.7.2015 on the subject cited above and to enclose herewith a copy of the Notification(in English and in Hindi) regarding declaring every second and fourth Saturday of every month as public holiday for banks in India with effect from 1st September, 2015.

2. RBI and IBA are requested to take necessary action accordingly.

3. This issues with the approval of Competent Authority.

Yours faithfully.

(Manish Kumar)

Under Secretary to the Government of India

Encl. As above

FM speaks on Implementation of 7th Pay Commission report in Parliament and tables Medium Term Expenditure Frame Work Statement – Central Government Employees Salary Expenditure to cross Rs. 1 lakh Crore.

Central government’s salary expenditure  will exceed Rs 1 lakh crore in the current fiscal  and is projected to increase further with the recommendations of 7th Pay Commission, posing risk to public finances, Finance Ministry said today.

According to the Medium-Term Expenditure Framework Statement tabled in Parliament, the salary outgo of central government employees will go up by 9.56 per cent to Rs 1,00,619 crore in currentfiscal.

The pace will increase further in 2016-17 at 15.79 per cent to Rs 1.16 lakh crore with the likely implementation of the 7th Pay Commission award, said the statement tabled by Finance Minister Arun Jaitley in Parliament.\

The outgo towards salary will further rise in 2017-18 to over Rs 1.28 lakh crore.

“The award of VII Central Pay Commission (CPC) and its impact on government finances poses a risk,” said the statement.

It also raised concerns about the rising pension bill of government employees saying it will rise to Rs 88,521 crore in current fiscal. It has been pegged at over Rs 1.02 lakh crore in 2016-17, and over Rs 1.12 lakh crore in 2017-18.

“Like in salaries, higher than normative growth has been provided for the projection of outlay on pensions during 2016-17. For the second year of the projection (2017-18), a normative growth has been assumed. Award of VII CPC and its impact on Government finances poses a risk,” it added.

The recommendations of the 7th Pay Commission, which was set up by in February 2014, is likely to be implemented from January 1, next year.

Source: The Economic Times

Central Employees Fear Delay In Getting Pay Hike

Central government employees are being promised bigger pay and allowances in fiscal 2016-17 as Finance Minister Arun Jaitley said in the Parliament on February 27, “the Seventh Pay Commission impact may have to be absorbed in 2016-17.”The Finance Ministry and the seventh central pay commission said nothing till date about this after the above announcement was made by Jaitley in his pre-budget speech for fiscal year 2015-16. Central government employees have expressed frustration at this, and are worried that the the seventh central pay commission’s recommendations might not be come out in time.

After getting pay panel recommendations, the finance ministry will review the recommendation and present the report to the cabinet but the car bazar and real estate markets will attempt to prevent the implementation pay panel in time because of the delayed implementation of the Pay Commission will not only employees getting more arrears but could also drive the car sales and real estate markets. Earlier, the central government employees got arrears for more than 30 months because of the delayed implementation of the Sixth Pay Commission in October 2008; it’s resulted in robust demand for car loans and house loans. The employees paid margin amount of loans from arrears and instalments from their new hike salaries.

According to Neelkanth Mishra of Credit Suisse, nearly one-third of India’s middle class is employed by the government and as the Seventh Central Pay Commission comes through, there will be an improvement in discretionary spending. “In Tier 3, Tier 4 towns where government employees are 50-60 per cent of the middle class, it is very likely that real estate markets will take off again,” he said.

If implantation of Seventh Pay Commission occurs in time, then car bazar and real estate markets, will have become sufferers.So, there are miles to go before the pay panel recommendations will be implemented for Central government employees and fund allocation in the next budget and other issues like pretext of Fourteenth Finance Commission recommendations are expected to prevent implementation of pay commission in time for giving benefit to the car bazar and real estate markets at the cost of central government employees.However, Union Railways Minister and Home Secretary have sought reforms and a better salaries and allowances for top Railways officials and paramilitary forces respectively.

TST

7th Pay Commission report may be delayed by a month – NC, Staff Side JCM reports after the meeting with Chairman, 7th CPC

 

No. NC/JCM/VII(CPC)

Dated: August 7, 2015

All Constituents Organisations,

National Councii(JCM)(Staff Side)

 Dear Comrades,

Sub: Brief of the meeting held today with the VII CPC

Today morning I met the Chairman, Seventh Central Pay Commission, Shri Ashok Kumar Mathur and Secretary, Mrs. Meena Agarwal.

It was assumed that the report of the VII CPC, as was promised for 28th August this year, may be delayed by one month.

I have impressed upon him once again for improvement in the service conditions of all the Central Government Employees working in different sectors with special emphasis in the matter of fixation of Minimum and other benefits.

This is for your information.

Comradely yours,

(Shiva Gopal Mishra)

Secretary Staff Side

NC/JCM

onfederation of Central Govt Employees and Workers issued strike notice for one day Central Government Employees Strike on 02.09.2015 – 11 Point charter of demands submitted to Government

Central Government Employees Strike on 02.09.2015 – Confederation of Central Govt Employees & Workers has issued strike notice  to the Cabinet Secretary in respect of One Day Strike on 2nd September 2015 on the demand of  implementing their Charter of Demands

 

CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS

1st Floor, North Avenue PO Building, New Delhi – 110001

Website: www.confederationhq.blogspot.com

Email: confederationhq@gmail.com

No. Confdn/Strike/2015                                                        

                                 Dated: 11tAugust 2015

To

The Cabinet Secretary,

Cabinet Secretariat,

Government of India,

Rastrapathi Bhawan,

NEW DELHI – 110004

Sir,

This is to give notice that the employees who are members of the affiliated organisations of the Confederation of Central Government Employees and Workers will go on one day’s strike on 2nd September, 2015.  The Charter of demands in pursuance of which the employees will embark upon the one day strike action is enclosed.

Thanking you,

Yours faithfully,

M. Krishnan,

Secretary General

ANNEXURE – I

CHARTER OF DEMANDS

1.   Urgent measures for containing price-rise through universalisation of public distribution system and banning speculative trade in commodity market.

2.   (a) Containing unemployment through concrete measures for employment generation.

(b) No ban on creation of new posts. Fill up all vacant posts.

3.   (a) Strict enforcement of all basic labour laws without any exception or exemption and stringent punitive measure for violation for labour laws. Withdraw the anti-worker Labour Law Amendments

(b) No labour reforms which are inimical to the interest of the workers.

4.   (a) Universal social security cover for all workers

(b) Scrap PFRDA Act and re-introduce the defined benefit statutory pension scheme.

5.   (a) Fix minimum wage  with provisions of indexation.

(b) Effect  wage  revision  of  the  Central  Government  Employees  from  01.01.2014  accepting memorandum of the staff side JCM; ensure 5-year wage revision in future; grant interim relief and merger of 100% of DA; Include Gramin Dak Sevaks within the ambit of 7th CPC. Settle all anomalies of 6th CPC.

6.  (a) Stoppage of disinvestment in Central/State PSUs. Stoppage of contractorisation in permanent perennial   work  and  payment  of  same  wage  and  benefits  for  contract  workers  as regular workers for same and similar work.

(b) No outsourcing, contractorisation, privatization of governmental functions; withdraw the

proposed move to close down the printing presses, the publications, form stores and stationery departments and medical stores Depots; regularize the existing daily-rated/casual and contract workers and absorption of trained apprentices.

7.   Removal  of  all  ceilings  on  payment  and  eligibility  of  bonus,  provident  fund; increase  the quantum of gratuity.

8.   (a)  Compulsory  registration  of  trade  unions  within  a  period  of  45  days  from  the  date  of submitting applications; and immediate ratification of ILO Convention C 87 and C 98.

(b) Revive the JCM functioning at all level as an effective negotiating forum for settlement of the demands of the Central Government Employees.

9.   (a) Against FDI in Railways, Insurance and Defence.

(b)  No Privatisation, PPP or FDI in Railways, Defence Establishment and no corporatization of

Postal services.

10. Remove arbitrary ceiling on compassionate appointment.

11. Ensure five promotions in the serve career.

Economic Analysts Expect 15 to 40 Percent hike likely to be recommended by 7th pay commission

Due to the co-relation between Pay Commissions and economic growth, many analysts are eagerly awaiting the 7th Pay Commission report   Bank of America estimates the salary raise to be at 15%, Religare puts it at 28 to 30%. Credit Suisse expects a salary hike of 40% 

Pay Commissions, which are regularly constituted to review salaries of Central government employees, give a fillip to the Indian economy, according to analysts. The sixth Pay Commission partly offset the after-effects of the 2008 Lehman crisis on India because of the 35% increase recommended. The implementation of the hike boosted two-wheeler and car sales and increased demand in the cement sector, according to global brokerage firm Bank of America Merrill Lynch.

Pay packages of government employees rose by an average of 35% as per the recommendations of 6th Pay Commission. They also received arrears of more than 30 months due to delay in the implementation. “The arrears resulted in robust demand for consumer discretionary products that resulted in sustained stock performance over 3-5 years,” Jai Shankar, chief India economist of Religare, told NDTV Profit.

Due to this co-relation between Pay Commissions and economic growth, many analysts are eagerly awaiting the 7th Pay Commission report. The 7th Pay Commission was appointed in February last year by the outgoing Congress-led UPA government, is likely to submit its recommendations by August-end or latest by October. The recommendations are likely to be implemented by the Central government next year.

About 50 lakh central government employees (including 15 lakh defence personnel) and more than one crore state and local government employees will gain from the recommendations to be made by 7th Pay Commission, according to Religare. Besides, it will also result in an upward revision of pension for about 30 lakh retired Central government employees.

While there is no consensus on the amount of salary hike likely to be recommended by the 7th Pay Commission, analyst expects it to be in the range of 15 to 40%.While Bank of America estimates the salary raise to be at 15%, Religare puts it at 28 to 30%. Credit Suisse expects a salary hike of 40%. Economists see the 7th Pay Commission as improving the economic activity in the country by increasing consumption. “The most important factor is economic activity itself which is gaining pace and, together with greater employment generation and policy reform, the 7th Pay Commission salary hike may help India enter a larger virtuous cycle,” said Religare.

“A 15 per cent salary increase would push up the central government’s salary bill by Rs 25,000 crore (or $4 billion), which is 0.2 per cent of India’s GDP. This will help in a consumption-driven recovery in the domestic economy,” said Indranil Sen Gupta of Bank of America Merrill Lynch.

Source: ibtimes

DoPTgrants funds for the modernisation of Departmental Canteens to Ministries/Deptts. and their attached/subordinate offices

Director (Canteens), Ministry of Personnel, PG. and Pensions issued an OM for the Grant of funds for modernisation  of Non-Statutory Departmental Canteens located in Central Government Offices.

No.20/1/2015-Dir.(C)

Government of India

Ministry of Personnel, PG. and Pensions

(Department of Personnel & Training)

Lok Nayak Bhawan, Khan Market,

New Delhi, dated 31st July, 2015

OFFICE MEMORANDUM

Subject : Grant of funds for Modernisation of Non-Statutory Departmental Canteens located in Central Government Offices.

The undersigned is directed to state that Department of Personnel and Training has initiated a scheme whereby financial assistance would be provided to individual Ministries/Deptts. and thei r attached/subordinate offices for the modernisation of Departmental Canteens under their administrative charge.

2.  Approved scheme for provision of funds to Ministries/Deptts. and their attached/subordinate offices is enclosed for ready reference. The funds will be provided on first-cum-first serve basis.

3. All Ministries/Deptts. and their attached/subordinate offices are requested to assess the need for modernisation of Departmental Canteens under their administrative charge and forward their proposal for grant of funds to this Department after obtaining the approval of respective IFDs.

(Pratima Tyagi)

Director(Canteens)