The All-India CPI-IW for December, 2015 decreased by 1 point and pegged at 269 (two hundred and sixty nine) and DA ason 1/1/2016 is 125.83 % and rounded out to 125% .
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Sunday, January 31, 2016
Saturday, January 30, 2016
7th CPC recommendations on Gazetted and Restricted Holidays – Dopt expects comments from NC JCM Staff Side
F. No.12/23/2015-JCA-2
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
Establishment (JCA – 2) Section
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
Establishment (JCA – 2) Section
North Block, New Delhi,
Date January 22, 2016
Date January 22, 2016
Shri Shiv Gopal Mishra
Secretary
National Council (Staff Side)Joint Consultative Machinery for Central
Government Employees
13-C, Ferozshah Road, New Delhi 110 001
Subject: Recommendations of the Seventh Pay Commission – Comments – regarding
Sir
Please find attached the extracts of para-9.2.19 on the above Report on ‘Gazetted and Restricted Holidays. The Cornmission has expressed opinion that the present system is working well and has recommended status-quo.
2. It is requested that your comments in this matter may please be provided to this Department, preferably, by 05.02.2016, so that a view can be taken.
Yours faithfully
sd/-
(G.Srinivasan)
Deputy Secretary to Government of India
sd/-
(G.Srinivasan)
Deputy Secretary to Government of India
Encl: As above
Friday, January 29, 2016
Meeting of Nodal Officers for 7th CPC implementation on 2nd Feb 2016
Meeting of Nodal officers of various
Departments - implementation of the
recommendations of the 7th CPC.
CLICK HERE FOR MEETING NOTICE
Departments - implementation of the
recommendations of the 7th CPC.
CLICK HERE FOR MEETING NOTICE
Wednesday, January 27, 2016
Constitution of Empowered Committee
Constitution of Empowered Committee of Secretaries for processing the Report of the Seventh Central Pay Commission.
CLICK HERE FOR ORDERS
Wednesday, January 20, 2016
Tuesday, January 19, 2016
7th CPC and Central Government finances
Comrades,
There
are various reports in the media about the impact of the 7th CPC
recommendations on the common man and the government resources at large, the
reports suggest that the Government may postpone the 7th CPC implementation
also till its finances are set right.
These reports
are totally wrong.
A) Let us examine the Revenue Secretary Shri
Hasmukh Adhia statements which are also published in the news papers.
“So
far, 1.8 crore refunds for assessment year 2015-16 have been processed, he
said. In the past, refunds have been held up for years as the government sought
to show healthier finances.”
“Data
released by the government showed that over Rs 5 lakh crore was locked up in
tax disputes at various levels, with some of the cases going back over 10
years. In value terms, over half the cases related to income tax with 30% of
the cases involving corporation tax.”
B) The crude oil prices has come down from 140 $ to just 30$ a barrel in one year thus the Central Government finances have improved a lot.
Source: CLICK HERE .
Finance Secretary Shri Ratan Watal
statement:
"The
pay commission award is from Januray 1. 2016 but it is likely to be implemented
from next years and employees paid arrears. By the time it is implemented,
it goes into next financial year and our growth prospects are good, our economy
is pretty robust"
The Revenue Secretary Shri Hasmukh Adhia
& Finance Secretary
Shri Ratan Watal statements
also indicate that the Government sought to show healthier finances
and the Central Government should accept the Staff side demands regarding
minimum wage, fitment formula & allowances.
If the
Government is serious about revenue collection then it can collect about 2.5
lakhs crores of pending tax dispute amount of more than 5 lakhs crores, this
will benefit the tax payer and the Government servant as well.
There is no
case for extension of time limit for extension of the 7th CPC implementation to
next year. This report will be implemented in May or June 2016.
The news paper
reports also suggest that additional amount of Rs one
lakh crores of public money has been spent for implementation of the 7thCPC
recommendations for 35 lakhs central Government employees, 15 lakhs defence
employees and 55 lakhs pensioners , perhaps the strongest criticism of Pay
Commission awards is that they play havoc with government finances and also
state government demand support to implement the 7th CPC
recommendations. At the aggregate level, these concerns are somewhat
exaggerated and which is totally wrong.
Let us note following
important points:
·
The DA amount increase is on basic pay only and also Transport
allowance is increasing .
· The
wage hike annually is around 15% .
· The
numbers of retired persons are more in the last 5 years compared to new
recruiters. Even the vast difference between the wages of new person joining
the Central Govt and retired person.
·
The 7th CPC has abolished many allowances, which is
not reflected in the actual impact on hike.
· The
difference between the actual wage hike as indicated in the 7th CPC
and the website of Government of India Ministry of Finance
Department of Expenditure Pay Research Unit for Brochure on Pay and Allowances
of Central Government Civilian Employees.
· The
difference between the actual wage hike as indicated in the 7th CPC
and the Finance Minster statement on the floor of the House on the Medium term
Expenditure Framework Statement laid before Parliament during August,
2015.
· PAY
RESEARCH UNIT DEPARTMENT OF EXPENDITURE MINISTRY OF FINANCE NEW DELHI brings
out a report on pay and allowances of Central Government civilian employees on
an annual basis which include the Ministry of Railways, Ministry of Home
Affairs, Department of Posts, Ministry of Defence (Civil), UNION TERRITORY and
other 100 departments. According to them the REGULAR CIVILIAN EMPLOYEES IN
CENTRAL GOVERNMENT AND UNION TERRITORY ADMINISTRATIONS AS ON 1.3.2013 is
31,80,608 persons.
· According
to the Defence Minister statement in Parliament is around 15 lakhs persons
(Army
Officers 38574, Other Ranks, 1132473, Navy Officers
8896
, Sailors 51608 , Air Force Officers 11918 , Airmen 130209)
* 18.6 lakh
Defence forces pensioners on 01.01.2014
The
7th CPC in its
report vide para no 16.1 has indicated that the total expenditure for the year
2016-17 towards Central Government Employees including, Civilians, Railways ,
Defence personnel, Ministry of Home, Department of Post etc before
implementation of the 7th CPC
report as Rs 4,33,
500.00 crores which include Pay of Rs 2,44,300.00 Crores , Allowances
which include HRA Rs 12,400.00 crores, other Allowances Rs 24300.00
crores, Pension Rs 142600.00 crores.
The 7th CPC
in its report vide para no 16.1 has indicated that the total expenditure for
the year 2016-17 (With VII CPC) as Rs 5,35, 600.00 crores
which include Pay of Rs 283400.00 Crores , Allowances which
include HRA Rs 29600.00 crores, other Allowances Rs 36400.00
crores, Pension Rs 176300.00crores.
The 7th CPC
has also stated that total financial impact in the FY 2016-17 is
likely to be ₹1,02,100 crore, an increase of nearly 23.55 percent over the Business
As Usual scenario.
Now with the
facts of the case is that the expenditure as stated in the above 7th CPC
report is not true in nature. This 7th CPC in its report vide para no
16.1 has indicated that the total expenditure for the year 2016-17 (With
VII CPC) as Rs 5,35, 600.00 is not all true the figure
is not likely to cross 3.5 lakhs crores including pension amount.
·
Expect HRA no other allowances has increased, HRA has increased by
just 106% over the existing amount.
- Out of the total expenditure of
Rs 5890.63 crore on HRA in 2013-14, the HRA expenditure for X
class cities is Rs 2541.55 crore which is around 43.14% of the total
expenditure on HRA.( Finance Ministry statement)
- Majority of the Central Govt Employees
don’t avail HRA and many employees reside in “C” class city. . Indian
defence personnel including Army personal stay in the military camp .
- The 7th CPC had indicate that the HRA
expenditure Rs
12400.00 crores against the Finance Ministry statement of Rs 5890.63
crore on HRA. It has also projected that Rs 29600.00 cores
expenditure on HRA which is not true as total expenditure on HRA is not
likely to be more than Rs
13,000/- crores.
Defence Salary and allowances Expenditurer Rs 75,000/- crores
Source: IDSA Institute of Defence Studies and Analyses
Please refer:
Expenditure Budget Vol. I, 2014-2015 (NON-PLAN EXPENDITURE 2014-2015)
Non-Plan expenditure covers all expenditure of Government not included in the Plan
Ref: http://indiabudget.nic.in/budget2014-2015/ub2014-15/eb/npe.pdf
10.07 Pensions amount (Rs 81,705 crore)
The Medium Term Fiscal Policy Statement - Union Budget
Pensions:
42. The expenditure on pension payments of the Central Government includes both defence as well as civil pensions. Pension payment, in nominal terms was estimated at Rs 74,076 crore in RE 2013-14 and at the year-end it was accounted at Rs 74,896 crore. In BE 2014-15, pension payment in nominal terms was estimated at Rs 81,983 crore. In RE 2014-15, it has been revised at Rs 81,705 crore. (18.6 lakh Defence forces pensioners on 01.01.2014)
Source : http://indiabudget.nic.in/ub2015-16/frbm/frbm2.pdf
Let us examine the 7th CPC report vide para no 3.65 and 3.66 and the website of Government of India Ministry of Finance Department of Expenditure Pay Research Unit for Brochure on Pay and Allowances of Central Government Civilian Employees visit website :http://finmin.nic.in/pru/BROCHURE/PayAllowance2013-14E.pdf.
finmin.nic.in
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The 7th CPC report para number 3.65 and 3.66
The Commission has obtained details of expenditure from each ministry/department for up to FY 2012-13. Of the total expenditure on pay and allowances of Rs 1,29,599 crore for the financial year 2012-13.
If you compare these figures with PAY RESEARCH UNIT DEPARTMENT OF EXPENDITURE MINISTRY OF FINANCE NEW DELHI expenditure statement for the year 2012-13 please refer websitehttp://finmin.nic.in/pru/BROCHURE/brochure2012-13.pdf
The total expenditure on Pay and Allowances (excluding Productivity Linked Bonus/ Ad-hoc Bonus, Honorarium, Encashment of Earned Leave and Travelling Allowance) for Regular Central Government Civilian employees including employees of the Union Territories Rs 108070.66 crore in 2012-13. This expenditure includes Ministry/ departments like Ministry of Railways, Ministry of Home Affairs, Department of Posts, Ministry of Defence (Civil), UNION TERRITORY and other 100 departments
Hence the 7th CPC para number 3.65 is wrong.
There are four possibilities of checking the 7th CPC statement of para no 16.1,
1st possibility is as follows:
The salary and allowance expenditure or the year 2013-14 is Of the total expenditure on pay and allowances of Rs 1,27,000 crore for the financial year 2013-14. Which include the Ministry of Railways, Ministry of Home Affairs, Department of Posts, Ministry of Defence (Civil), UNION TERRITORY and other 100 departments as per the PAY RESEARCH UNIT DEPARTMENT OF EXPENDITURE MINISTRY OF FINANCE NEW DELHI expenditure statement for the year 2013-14.
Add 35% increase expenditure Rs 44,000/ crores ( add 25% DA)
Add Pension amount of Rs 90,000/- crores
Add Defence employees salary expenditure of Rs 75,000/- crores
So total expenditure is Rs 3,36,000 /- crores
Add 14% increase in wage hike on 2.75 lakh crore for serving employees and 20% hike for pensioners . Add HRA amount Rs 13,000/- crores .Which works out to Rs 60,000/- crores increase not one lakhs crores. Deduct Rs 10,000/ cores as Income tax, CGEIS and increased CGHS, licensee fee rates. Deduct abolition of allowances amount of Rs 10,000/- crores. Net additional burden for Central Govt. is Rs 40,000/- crores.
DA amount increase (2nd possibility):
Press Information Bureau Government of India Ministry of Finance statement .
Press Information Bureau Government of India Ministry of Finance statement .
The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be in the order of Rs. 6655.14 crore per annum and Rs.4436.76 crore in the financial year 2015-16 (for a period of 8 months from July, 2015 to February, 2016).
DA increase for 50 lakhs employees is Rs. 6655.14 crores per annum * 12/ 8 = Rs 9982 crores for 6% increase in DA, for 14% wage hike it is 9982*14/6 = Rs 23292 crores.
Pension.
DA increase for 55 lakhs employees is Rs. 4436.76 crores per annum * 12/ 8 = Rs 6655crores for 6% increase in DA, for 14% wage hike it is *14/6 = Rs15528 crores.
So total additional expenses for wage hike is Rs 38820 crore add Rs 6,000/- towards HRA increase and additional pension hike of Rs 5,000/- so total hike is around Rs 50,000/- crores. Deduct Rs 10,000/ cores as Income tax, CGEIS and increased CGHS, licensee fee rates. Deduct abolition of allowances amount of Rs 10,000/- crores. Net additional burden for Central Govt. is Rs 30,000/- crores
3rd Possibility Pay commission statement :
Let us examine para no 3.66 of the 7th CPC report the expenditure per capita on pay and allowances for Civil Central Government personnel for FY 2012-13 was Rs 3.92 lakh per annum i.e Rs 32666/- per month taking into account of DA percentage as 80%. (take basic pay of Rs 15,000/-)
Add 45% DA for the period 1/4/2013 to 1/1/2016 average salary of Civil Central Government personnel as on 1/1/2016 at 125% DA which works around Rs 37500/- per month (Rs 4.50 lakhs per annum ) without 7th CPC recommendations .
Multiply by 50lakhs CEG employees including Defence employees , Railways , Home, Postal etc. it works out to Rs 2.25 lakhs crores. So total expenditure on salary as on 1/1/2016 is at RS 2.25 lakhs crores. Add pension amount of Rs 1 lakh crores hence total expenditure is at Rs 3.25 lakh cores .
The 7th CPC in its report vide para no 16.1 has indicated that the total expenditure for the year 2016-17 towards Central Government Employees including, Civilians, Railways , Defence personnel before implementation of the 7th CPC report as Rs 4,33, 500.00 crores , In this case the difference works out to more than one lakh crore .
Add 14% increase in wage hike on 1.75 lakh crore for serving employees and 20% hike for pensioners . Add HRA amount Rs 13,000/- crores. Which works out to Rs 60,000/- crores increase not one lakh crores. Deduct Rs 10,000/ cores as Income tax, CGEIS and increased CGHS, licensee fee rates. Deduct abolition of allowances amount of Rs 10,000/- crores. Net additional burden for Central Govt. is Rs 40,000/- crores.
4th Possibility is as follows:
Medium term Expenditure Framework Statement laid
Before Parliament by Minister of Finance August, 2015
Budget Projection for Estimates 2015-16: Revenue Expenditure
1) Salary Rs 100619 crores
2) Pension Rs 88521 crores.
3) Add for Railway employees Rs 45,000/- crores.
4) Add for Defence employees Rs 75000/ crores
Total Expenditure on salary and allowances including pension amount is 3,09,000 crores.
Add 14% increase in wage hike on 2.20 lakh crore for serving employees and 20% hike for pensioners Add HRA amount Rs 13,000/- crores . Which works out to Rs 61,000/- crores increase not one lakh crores. Deduct Rs 10,000/ cores as Income tax, CGEIS and increased CGHS, licensee fee rates. Deduct abolition of allowances amount of Rs 10,000/- crores. Net additional burden for Central Govt. is Rs 45,000/- crores.
Hence the net increase in salary and pension is just around Rs 40,000/- crores not Rs one lakhs crores as stated in the 7th CPC out of which 15,000/ crores is for Defence employees, Rs 15,000 crores by the Railway's . The 7th CPC projections of 5.5 lakhs cores expenditure is also wrong.
The 7th CPC recommendation's impact need not give jitters to the government because the rise in government wages will amount to only 0.4 per cent of GDP.
One more aspect is that technically, the recommendations of a Central Pay Commission are only for Central Government employees and States are not bound to follow suit. Indeed, up to the 1980s, States constituted their own Pay Commissions and prescribed their own pay scales, based upon their fiscal capacity.
The Central Governement should accept the Staff side demands regarding minimum wage, fitment formula & allowances. Hence the news paper reports are totally wrong. We need to educate the members and prepare for a strugle.
Comradely yours
(P.S.Prasad)
General Secretary
Friday, January 15, 2016
CGHS
Delegation of powers to Heads of Offices for treatment availed in emergency circumstances- relaxation of rules regarding
CLICK HERE FOR CGHS ORDERS
Constitution of an Empowered Committee of Secretaries to process the recommendations of the 7th Central Pay Commission
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval for setting up an Empowered Committee of Secretaries under the Chairmanship of Cabinet Secretary, in order to process the recommendations of 7th Central Pay Commission (CPC) in an overall perspective.
The Empowered Committee of Secretaries will function as a Screening Committee to process the recommendations with regard to all relevant factors of the 7th CPC in an expeditious detailed and holistic fashion.
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Raising of Bonus Payment Ceiling to the Central Government Employees - NC JCM
Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
For Central Government Employees
13-C, Ferozshah Road New Delhi – 110001
E Mail : nc.jcm.np@gmail.com
Shiva Gopal Mishra
Secretary
No. NC-JCM-2015/S.C
January 11,2015
The Secretary
Government of India
Department of Expenditure
North Block, New Delhi- 110 001
Subject: – Raising of Bonus Payment Ceiling to the Central Government Employees.
Reference: – The payment of Bonus (Amendment) Bill 2015.
Sir,
The Payment of Bonus (Amendment) Bill 2015 was passed by both the houses of the Parliament. The amendment provides that the existing Ceiling limit of Bonus for 30 days Rs. 3,500/- is enhanced to Rs. 7,000/- for 30 days. This amendment will take effect from 01.04.2014 (A copy of the Bill passed in the Parliament is enclosed for your kind ready reference).
You are aware that any change in Bonus Act would be an indicator while deciding the Payment of Bonus to the Central Government Employees. Accordingly, every time when Bonus Act is amended raising the payment ceiling limit, it is extended to Central Government Employees also. This issue was also raised by the Staff Side in the Standing Committee Meeting of National Council (JCM) held on 09th October, 2015.
It is therefore requested that steps may be taken for issuing Government Orders for enhancing the Bonus Payment Ceiling limit of Central Government Employees both PLB and Adhoc Bonus to Rs. 7,000/- w.e.f 01.04.2014 and arrears of PLB and Adhoc Bonus for the year 2014-2015 may be paid to the employees.
An earlier and favorable action is solicited.
Thanking you,
Yours Sincerely,
Sd/-
(Shiva Gopal Mishra)
Secretary
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