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Sunday, October 27, 2013

Draft Terms of Reference of 7th CPC

Finalized by the Staff Side at the meeting of 25.10.2013.
A.     To examine the existing structure of pay, allowances and other benefits/facilities, retirement benefits like Pension, Gratuity, other terminal benefits etc. to the following categories of employees.
1       Central Government employees – industrial and non industrial;
2       Personnel belonging  to  All India services;
3       Personnel belonging to the Defence Forces;
4       Personnel called as Grameen Dak Sewaks belonging to the Postal   Department;
5        Personnel  of Union Territories;
6      Officers and employees of the Indian Audit and Accounts                     Department;
7       Officers and employees of the Supreme Court;
8       Members of Regulatory bodies (excluding RBI) set up under Act of      Parliament.
B.     To work out the comprehensive revised pay packet for the categories of Central Government employees mentioned in (A) above as on 1.1.2014.
C.     The Commission will determine the pay structure, benefits facilities, retirement benefits etc. taking into account the need to provide minimum wage with reference to the recommendation of the 15th Indian Labour Conference (1957) and the subsequent judicial pronouncement of the honorable Supreme Court there-on, as on 1.1.2014.
D.     To determine the Interim Relief needed to be sanctioned immediately to the Central Government employees  and  Pensioners mentioned in (A) above;
E.     To determine the percentage of Dearness allowance/Dearness Relief immediately to be merged with Pay and pension 
F.      To settle the anomalies raised in various fora of JCM.                                                        
G.    To work out the improvements needed to the existing  retirement benefits, like pension, death cum retirement gratuity, family  pension and other terminal or recurring  benefits maintaining parity amongst past, present and future pensioners and family pensioners including those who entered service on or after 1.1.2004.
H.    To recommend methods for providing cashless/hassle-free Medicare facilities to the employees and Pensioners including Postal pensioners.



Dear Comrades,
VII-CPC – Terms of reference-

               The members of the National Secretariat of the Confederation available at New Delhi met on 23rd Oct. 2013 and again on 24th October, 2013 to discuss and formulate our views on the 7th CPC terms of Reference.  On the basis of the discussions, we prepared a draft terms of reference and submitted it for consideration of the Staff Side.  The important points we placed in our draft for the consideration of the staff side were:-

(a)    The Commission to examine the present structure of pay and allowances and suggest changes.
(b)    To give effect to its recommendations from 1.1.2011 i.e. wage revision must be after       every five years.
(c)    D.A (50%) to be merged with pay with effect from 1.1.2011.
(d)    To determine Interim relief taking into account the erosion in the value of wages over the years,
(e)    To include GDS within the ambit of the 7th Central Pay Commission.
(f)     To revise the retirement benefits and accord pension maintaining parity in quantum in respect of past, present and future pensioners.
(g)    To extend the statutory defined benefit pension to those who have entered service after 1.1.2004.
(h)    To settle the anomalies raised in various fora of JCM on a priority basis and within a specified time frame.
(i)      To provide cashless/hazzle free Medicare to employees and pensioners.

The Government of India had convened a meeting of the Staff side representatives on 24.10.2013 to discuss the terms of reference.  The meeting took place at 3.00PM on 24th under the Chairmanship of Secretary, Personnel.  Besides the points mentioned above, the staff raised many other matters connected with the setting up of the CPC. viz. the inclusion of labour Representative as a Member of the Commission; the anomalous  situation brought about by the Grade pay based MACP Scheme; the requirement of a mechanism to settle the 6th CPC related anomalies;  the need to allow the proposals of Cadre Review to be examined by the Government independently without referring it to CPC;  to have members in the Commission who have gained  expertise to impart to the Commission the nuances and functional requirements of various Departments;  to relook at the new Pay Structure brought in by the 6th CPC in the light of the experience between 2008 to 2013 etc.  In conclusion the staff side requested the Government to provide it with a draft terms of reference taking into account the views placed by them.  It was also proposed by the Staff Side that on exchange of the draft terms of reference prepared by the Staff Side and the Official Side, a meeting with the Secretary, Personnel and Secretary, Expenditure could be arranged to iron out the differences, if any.
The Staff Side met again on 25th at its office and deliberated upon various views presented by different organisations and finalised the draft terms of reference. We shall publish the said draft terms of reference as and when the same is submitted to the Government.
It is obvious that despite the unanimous position taken by all the organisations, the Government may not necessarily agree with many of the basic issues, viz. Date of effect, merger of  DA, Interim Relief, Coverage of GDS etc.  We appeal to our affiliates/ State COCs to continue the campaign amongst the employees to generate necessary sanctions.
With greetings,
Yours fraternally,

Secretary General.

Monday, October 21, 2013



(1) Inclusion of Gramin Dak Sevaks under the purview of 7th CPC

(2) Regularisation of Casual, Part-time, Contingent Employees and Revision of their wages with effect from 01.01.2006 (as per 6th CPC wage revision) & Grant of DA

(3) Merger of 50% DA with pay for all employees including GDS

The above decision was taken in the Central JCA Meeting held on 19.10.2013 at New Delhi under the Chairmanship of Shri. T. N. Rahate, President, FNPO.

M. Krishnan D. Theagarajan
Secretary General Secretary General

Thursday, October 17, 2013

CGHS Hospitals Rates

Corporate hospitals across the country have threatened to stop cashless treatment to lakhs of Central Government employees from January 1. This will impact about 45 lakh employees of the Central Government and public sector agencies who are benefiting from the insurance scheme.
Protesting against “unviable” rates being given to them under the Central Government Health Scheme (CGHS), the Association of Healthcare Providers (India) (AHPI) has said that it will give three months’ time to the Government to revise the rates.

“After that we will stop all cashless services at our hospitals. We will, however, continue to provide services on paying cash (at the hospital rates). They can seek reimbursement later,’’ said Alex Thomas, an AHPI leader.


Representatives of about 100 corporate hospitals held a meeting here on Saturday to discuss the challenges they face with regard to CGHS cases. AHPI said the Government should come out with a scientific method to arrive at proper packages for various treatments.

“They have not revised the tariff for various procedures for years, while the cost of operations has gone up significantly,” said Bhaskara Rao, President of the Andhra Pradesh Speciality Hospitals Association and Chief Executive Officer of Krishna Institute of Medical Sciences.

The Association will submit a memorandum to the Centre through CGHS authorities, demanding a hike in tariff for several packages.

Deviprasad Shetty, Chairman of Narayana Hrudayalaya, said hospitals are not being paid on time, and that the payments are below the actual cost (of procedures).

When asked about the alleged malpractices and inflation of bills by corporate hospitals, both Thomas and Rao said that all such violations should be probed into.

Monday, October 14, 2013

Comparission of World inflation with Indian inflation


Inflation in brief:

Inflation means a reduction in the value of money; in other words, a rise in general price levels. The literal meaning of the word inflation is to blow up or get bigger. If the amount of money in a country - the money supply - grows faster than production in that country, the average price will rise as a result of the increased demand for goods and services. Inflation can also be caused by higher costs being charged on to the end-user. These might be raw material costs or production costs which have risen, but could also be higher tax rates. These price rises cause the value of money to fall. You can therefore buy less with the same amount of money. But this does not need to have an immediate effect on purchasing power. Purchasing power only declines if wages rises less rapidly than prices.

Consequences of limited inflation:

Governments often strive for an inflation rate of around 2 to 3 percent per year. Such low inflation is beneficial for the economy. Low inflation encourages consumers to buy goods and services. Delaying will mean that they would have to pay more for the same product. Low inflation also makes it more appealing to borrow money, since interest rates are usually also low during periods of low inflation. Maintaining low inflation is therefore an important goal for governments and central banks because of the economic benefits.

Consequences of high inflation:

As indicated above, limited inflation is good for the economy. But high inflation is less beneficial. High inflation can cause the population’s confidence in their own currency and economy to decline, and it can be less appealing for foreign investors to invest in the country concerned. High inflation therefore often has a harmful effect on economic growth. If inflation gets too high, a country’s central bank will often intervene by raising its interest rates and thus discourage the creation of money.

Most recent CPI India (inflation figure) 10.748 %


 Summary of current inflation percentage by country or region

 Inflation figure country/region type period monthly basis yearly basis
 CPI Austria Austria cpi august 2013 0.093 % 1.796 %
 CPI Belgium Belgium cpi september 2013 0.057 % 0.888 %
 CPI Brazil Brazil cpi september 2013 0.350 % 5.859 %
 CPI Canada Canada cpi august 2013 0.000 % 1.067 %
 CPI Chile Chile cpi september 2013 0.536 % 1.963 %
 CPI China China cpi august 2013 0.503 % 2.515 %
 CPI Czech Republic Czech Republic cpi august 2013 -0.163 % 1.321 %
 CPI Denmark Denmark cpi september 2013 0.308 % 0.463 %
 CPI Estonia Estonia cpi september 2013 -0.354 % 2.022 %
 CPI Finland Finland cpi august 2013 -0.157 % 1.240 %
 CPI France France cpi august 2013 0.464 % 0.869 %
 CPI Germany Germany cpi august 2013 0.000 % 1.531 %
 CPI Great Britain Great Britain cpi august 2013 0.477 % 2.681 %
 CPI Greece Greece cpi september 2013 2.628 % -1.120 %
 CPI Hungary Hungary cpi september 2013 0.443 % 1.342 %
 CPI Iceland Iceland cpi september 2013 0.302 % 3.881 %
 CPI India India cpi august 2013 0.851 % 10.748 %
 CPI Indonesia Indonesia cpi september 2013 -0.349 % 8.397 %
 CPI Ireland Ireland cpi september 2013 -0.098 % 0.197 %
 CPI Israel Israel cpi august 2013 0.196 % 1.361 %
 CPI Italy Italy cpi september 2013 -0.278 % 0.939 %
 CPI Japan Japan cpi august 2013 0.300 % 0.905 %
 CPI Luxembourg Luxembourg cpi september 2013 0.174 % 1.499 %
 CPI Mexico Mexico cpi september 2013 0.376 % 3.390 %
 CPI Norway Norway cpi september 2013 0.522 % 2.820 %
 CPI Poland Poland cpi august 2013 -0.322 % 1.226 %
 CPI Portugal Portugal cpi september 2013 0.586 % 0.116 %
 CPI Russia Russia cpi august 2013 0.150 % 6.522 %
 CPI Slovakia Slovakia cpi august 2013 -0.122 % 1.358 %
 CPI Slovenia Slovenia cpi august 2013 0.302 % 2.219 %
 CPI South Africa South Africa cpi august 2013 0.385 % 6.435 %
 CPI South Korea South Korea cpi september 2013 0.186 % 0.841 %
 CPI Spain Spain cpi september 2013 -0.187 % 0.342 %
 CPI Sweden Sweden cpi september 2013 0.386 % 0.076 %
 CPI Switzerland Switzerland cpi september 2013 0.301 % -0.055 %
 CPI the Netherlands The Netherlands cpi september 2013 0.330 % 2.400 %
 CPI Turkey Turkey cpi september 2013 0.765 % 7.882 %
 CPI United States United States cpi august 2013 0.120 % 1.518 %
 HICP Austria Austria hicp august 2013 0.229 % 1.983 %
 HICP Belgium Belgium hicp august 2013 1.631 % 1.101 %
 HICP Czech Republic Czech Republic hicp august 2013 -0.164 % 1.246 %
 HICP Denmark Denmark hicp august 2013 0.086 % 0.086 %
 HICP Estonia Estonia hicp august 2013 -0.055 % 3.558 %
 HICP Eurozone Europe hicp august 2013 0.128 % 1.340 %
 HICP Finland Finland hicp august 2013 -0.125 % 2.046 %
 HICP France France hicp august 2013 0.505 % 0.980 %
 HICP Germany Germany hicp august 2013 0.000 % 1.580 %
 HICP Great Britain Great Britain hicp august 2013 0.477 % 2.681 %
 HICP Greece Greece hicp august 2013 -1.685 % -0.974 %
 HICP Hungary Hungary hicp august 2013 -0.055 % 1.563 %
 HICP Iceland Iceland hicp august 2013 -0.182 % 4.753 %
 HICP Ireland Ireland hicp august 2013 0.091 % 0.000 %
 HICP Italy Italy hicp august 2013 0.000 % 1.202 %
 HICP Luxembourg Luxembourg hicp august 2013 1.439 % 1.681 %
 HICP Poland Poland hicp august 2013 -0.238 % 0.884 %
 HICP Portugal Portugal hicp august 2013 -0.676 % 0.164 %
 HICP Slovakia Slovakia hicp august 2013 -0.179 % 1.419 %
 HICP Slovenia Slovenia hicp august 2013 0.226 % 2.234 %
 HICP Spain Spain hicp august 2013 0.249 % 1.634 %
 HICP Sweden Sweden hicp august 2013 0.141 % 0.797 %
 HICP the Netherlands The Netherlands hicp august 2013 -0.222 % 2.795 %
 HICP Turkey Turkey hicp august 2013 -0.048 % 8.019 %

Indian Inflation comparison:

Friday, October 11, 2013

Holiday on 14/10/2013 for Dussehra (Vijaya Dashami)

The DOPT has declared RH on 13th October 2013 for Dussehra (Maha Navami) and closed holiday on 13th October 2013 for Dussehra festival. Pl see web site DOPT CIRCULAR 2013How it can happen two festivals in a single day.

From the year 1982 onwards there is clear holiday orders giving holiday for Dussehra (Vijaya Dashami) and RH on Dussehra (Maha Navami) , please refer the holiday list of the year 2011 and 2012.  Dussehra (Vijaya Dashami) festival  and  Dussehra festival are one and the same . The world famous Mysore dasara festival  & Vijayadashami  falls on 14/10/13. Thereby denying the due holiday for Dussehra (Vijaya Dashami) which falls on 14/10/2013.  This is the first time that holiday for Dussehra (Vijaya Dashami) is denied.
 The Karnataka State Government has also declared holiday on 14th October 2013 for Dussehra festival vide 
The Railways under the industrial act has declared holiday on 14th October 2013 for Dussehra festival see 
CLICK HERE Railway Circular 

Similar problems are there for  1st November  holiday as Railways have declared holiday on 1st November 2013 for kannada rajyotsava.

 More over before 1982 the holiday were declared by local co-ordination committee, it would be ideal that local persons have more say in holidays rather than DOPT.  The only 3 holiday should   declared by DOPT and rest of the holidays the local Central Government Employees Welfare Co-ordination Committee or Head of Department should fix the holiday today it is reverse. Similar facility is available for Railways and Defense employees. 
As per the 5th and 6th Central Pay Commission similar recommendations are as follows:

Sixth Central Pay Commission view:

Holiday policy para no 4.5.6 As regards the issue of holidays, there can be no rationale for observing a large number of closed holidays in the Government along with a five day week.  It is also very true that in a secular nation, religious festivals should be treated as personal to each individual employee without the Government offices having to be closed on that account.  Keeping in view the recommendations of the Fifth Central Pay Commission in this regard, the Commission recommends that, henceforth, the Government offices should remain closed only on the 3 National holidays. No other closed holidays should be allowed.  To enable the Government employees the freedom to celebrate their festivals and other occasions of special significance to them, the number of Restricted Holidays available to an employee shall be increased to 8 with the list of Restricted Holidays being suitably enlarged to include all the erstwhile Gazetted Holidays therein.  The Commission is aware that on few occasions, it may not be possible to open the office due to local considerations like lack of availability of adequate transport facilities on that day or some other practical problem.  Every Head of Department (HOD) should, therefore, be allowed the option of declaring the office closed for a maximum of two Restricted Holidays in a year based on local considerations.  These days should be decided by the HOD at the beginning of the year in consultation with the Staff Side of the organization and be prominently displayed in the office premises. 

                                                                                                                           Comradely yours

                                                                                                               General Secretary