Certain Allowances to CG Employees should go up by 25% from 1-1-2014.

The VI CPC in their report had recommended that certain allowances, viz. Children Education Allowance, National Holiday Allowance, Daily Allowance, Washing Allowance, Breakdown Allowance, Special Compensatory Allowance, Cycle Maintenance Allowance, Fixed Conveyance Allowance, Road Mileage Allowance, Special Allowance to various categories of staff etc., should be increased by 25% whenever Dearness Allowance crosses 50%, and this recommendation was duly accepted by the Government of India.

 Based on the above recommendation of the VI CPC, these allowances have since been enhanced by 25% w.e.f. 01.01.2011, i.e. from the date, when the DA had crossed. 50%.

Now, Dearness Allowance has crossed 100% w.e.f. 01.01.2014, there is, therefore, gross justification that the above allowances be further enhanced by additional 25%, as Dearness Allowance has again crossed the value of 50% after enhancement of these allowances w.e.f.01.01.2011.




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CBEC receives minutes of DPC for promotion to AC cadre from UPSC

TIOL reports that CBEC has received  DPC minutes from UPSC and that clearance from  Election Commission would be taken on top priority basis. In Hyderabad CCA around 11 Superintendents are likely to be promoted. 

Govt. clarifies that cashless facility under CGHS to continue

Dismissing reports that some private hospitals refuse to accept CGHS cards for cashless transactions because of non-reimbursement of dues by the government, the Ministry of Health and family Welfare said on Monday that it would ensure that the CGHS-empanelled hospitals continued to extend cashless and credit facilities to the beneficiaries.

 The clarification came after some private hospitals, under the banner of the Association of Healthcare Providers withdrew cashless services to the CGHS beneficiaries from March 7 alleging long delays in payments. The delay in payments in the last year, due to budgetary constraints, is not a new phenomenon, and the hospitals are aware of it. The Ministry has taken special steps, and the pendency is likely to be cleared within a week, the statement said.

 The CGHS has already invited bids for revision of package rates through a transparent tender process, the Ministry said. Measures are already taken to resolve payment related issues in the ensuing empanelment process. 

The Hindu

Private CGHS recognised Hospitals stop cashless treatments for central government employees

Notwithstanding government’s assurance to hospitals that dues under the CGHS will be cleared in a week, the health-care service providers on Saturday decided to go ahead with the discontinuation of the cashless services.

The hospitals are demanding immediate clearance of pending outstanding of over Rs. 200 crore towards them under the Central Government Health Scheme.The government had on Friday said the pending amount is likely to be cleared “within a week” and had also announced a revision of payments as demanded by private hospitals association.

“Large and long pending payments which far exceeded the agreed upon time frame… It takes weeks and months for hospitals to receive the money,” the Association of Healthcare Providers (India) said in a statement on Saturday. Under the circumstances, it has become un-tenable for hospitals to continue giving cashless services as they are not getting paid for the services for months.

“CGHS own dashboard showed Rs. 202 crore as outstanding to hospitals as on January 31, 2014,” it said. Very little amount out of this has actually been received till now, whereas more bills have been raised and submitted by the hospitals, the statement said.

Hospitals are being threatened that they should continue with cashless services. “CGHS is very conveniently avoiding the fact that Memorandum of Understanding (signed between them) clearly provides with obligation on part of CGHS to pay the dues within 10 days,” the association said.

Hospitals very humbly want to know that with what legal and moral right, CGHS can ask hospitals about violating the terms and conditions, when CGHS itself has violated so openly the terms and conditions of the MoU. How can CGHS demand hospitals to continue cashless services when some of the hospitals in NCR have pending amount? they asked.

Hospitals, through their association, have been holding meetings with CGHS since March 2013. “There has not been any improvement in the working of CGHS. Only when hospitals have been pushed to wall as explained above, they have been forced to withdraw cashless services,” the statement said.The Union health ministry is working on resolving the crisis.


The Hindu



Government of India

Ministry of Finance

(Department of Economic Affairs)

New Delhi, the 4th March, 2014


It is announced for general information that during the year 2014-2015, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8.7% (Eight point seven per cent) per annum. This rate will be in force during the financial year beginning on 1.4.2014. The funds concerned are:—

1. The General Provident Fund (Central Services).

2. The Contributory Provident Fund (India).

3. The All India Services Provident Fund.

4. The State Railway Provident Fund.

5. The General Provident Fund (Defence Services).

6. The Indian Ordnance Department Provident Fund.

7. The Indian Ordnance Factories Workmen’s Provident Fund.

8. The Indian Naval Dockyard Workmen’s Provident Fund.

9. The Defence Services Officers Provident Fund.

10. The Armed Forces Personnel Provident Fund.

2. Ordered that the Resolution be published in Gazette of India.


(Peeyush Kumar)


Director (Budget)

10 facts about our CBEC

1. Central Excise is one of the oldest Department of India, established by Britishers in 1855.

2. "The Central Excise Act 1944" was known as "The Central Excise & Salt Act, 1944" before year 1996.

3. There were only 67 items mentioned in the original act on which Excise Duty was levied, but now the number is in thousands.

4. At present Central Excise Department has 23 Zones, 100 Commissionerates, 460 Divisions & 2614 Ranges for Tax Collection & Law Enforcement Activities across India.

5. "Power to Arrest" was given to Central Excise Officers in 1973 by Union Govt, whereas "Power to Arrest" in Service tax matters was given in 2013.

6. Central Excise Department has won "Best Anti Smuggling Agency of India" prize maximum times beating other Govt. agencies like BSF, ED, NCB, Income Tax, ITBP, etc.

7. Intelligence Agency of Central Excise, 'Directorate General of Central Excise Intelligence' (DGCEI) was established in the year 1979 & till year 2000 it was known as 'Directorate General of Anti Evasion'. With only 300 officers across India, DGCEI detects more Revenue Evasions cases than heavily staffed agencies like Enforcement Directorate & Income Tax Investigation.

8. At present there are 11,210 Superintendents & 14,704 Inspectors working in Central Excise, which are the backbone of Revenue Collection & Anti Smuggling Operations. These officers are deputed in Revenue Ranges, International Airports, Intelligence & Preventive wings, Anti Smuggling Wings, Land Customs Stations & Border Check Points.

9. The term 'Excise' is Latin word which means Inland Tax.

10. Till early 1954 Central Excise Department was known as "Customs, Excise & Tobacco Department". But after union Budget of 1954 the Department was renamed as "Indian Customs & Central Excise Department" & the production tax on Alcohol was transferred to State Government.

Gain for a Central Government Officer on account of 50% DA Merger if it all it is there.. the proposal seems to have been shelved for the time being

 Let us consider as if a government servant is working in one of the four metropolitan cities and rendered 10 years’ of service.

His Basic Pay is (7600+2400) 10,000
Dearness Allowance 100% 10,000
HRA 30% 3,000
Transport Allowance (1600+1600) 3,200
Total 26,200
The salary with same basic pay after 50% DA mergerwill be as fallows
Basic Pay (7600+2400) 10,000
Dearness Pay 5,000
Dearness Allowance (50%) 7,500
HRA 4,500
Transport Allowance (1600 + 800) 2,400
Total 29,400
Total Hike in Pay (29400 – 26200) 3,200
% of Hike is 12%

Govt. notifies constitution and TOR of 7th CPC

Ministry Of Finance

(Department of Expenditure)                                                    RESOLUTION

 New Delhi, the 28th Febraury,2014

 No.1/1/2013-E.III(A)— The Government of India have decided to appoint the Seventh CentralPay Commission comprsing the fallowing

 1.Chairman – Justice Shri Ashok kumar Mathur

2.Member – Shri Vivek Rae

3.Member – Dr. Rathin Roy

4.Secretary – Smt. Meena Agarwal

 2.The terms of reference of the commission will be as fallows

 a) To examine, review, evolve and recommend changes that are desirable and feasible regardingthe principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

§  i. Central Government employees-industrial and non-industrial;

§  ii. Personnel belonging to the All India Services;

§  iii. Personnel of the Union Territories;

§  iv. Officers and employees of the Indian Audit and Accounts Department;

§  v. Members of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of Parliament; and

§  vi. Officers and employees of the Supreme Court.

b) To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the Defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel.

c) To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d) To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.

e) To review the variety of existing allowances presently available to employees in addition topay and suggest their rationalization and simplification, with a view to ensuring that the paystructure is so designed as to take these into account.

 f To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g) To make recommendations on the above, keeping in view:

§  i. the economic conditions in the country and need for fiscal prudence;

§  ii. the need to ensure that adequate resources are available for developmental expenditures and welfare measures;

§  iii. the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications;

§  iv. the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and

§  v. the best global practices and their adaptability and relevance in Indian conditions.

§  h) To recommend the date of effect of its recommendations on all the above.


3.The Commission will devise its own procedure and may appoint such advisors, Institutional Consultants and Experts, as it necessary for any particular purpose. It may call for such information and take such evidence, as it may consider necessary. Ministries and Departments of Government of India shall furnish such information and documents and other assistance as may be required by the commission. The government of India trusts the State Governments, Service Associations and other concerned will extend to the Commission their fullest cooperation and assistance

 4.The Commission will have Headquarters in Delhi

5.The Commission will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.




No DA Merger..No increase in Retirement Age…but Interim Relief may be possible..

The proposals for DA merger and retirement age increase have not been considered by the central cabinet meeting held on Sunday evening.. As such, the t the proposals of Enhancement of Retirement age of Central Government Employees from 60 to 62 years and Merger of D.A to basic pay may not be materialized now before General elections.. But there is a possibility of  Interim Relief (I.R) before elections by the Pay Commission.