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Monday, March 17, 2014

Indian Tax System and Effect on Central Government Employees.

Comrades,
                 The Central Government has been informing the general public that crores  of  rupees were spent on salary and pension of  Central Government Employees. In fact the following are facts out of total revenue of Central Government the share of  CG Employees towards Salary, perks and pension amount is just 10.47 % of the total revenue of the Central Government which was earlier 16% at the.time of 6th CPC.   They are in forming that 7th CPC will cost exchequer Rs 25,000/ thousand crores which will effect Central Government finances. 
  

               Secondly the Central Government Employees are paying tax for every rupee they earn including the all allowances, in fact the 5th CPC has recommended that the Central Government should not deduct any Income tax on these allowances. apart from income tax, all other taxes are also imposed just like other employees. 

               Further the  Fifth Central Pay commission in its report vide para no105.12 has said that  Dearness allowance should be paid free of net taxes as the DA is paid for compensation against price rise. The all allowances should also be paid net of taxes which has been examined by 5th CPC in para no 167.   

              Today according to various media reports, only 2 to 3 percent of Indians pay any income tax at all. In December, India’s finance minister, Palaniappan Chidambaram, said that 2.89 percent of the population (about 36 million people) filed income taxes. (In contrast, in the U.S., about 45 percent of the population pays taxes, which means that, despite India’s much-larger population, more Americans than Indians actually pay taxes.)  CLICK HERE FOR DETAILS .

            Totally a Central Government employees pay upto 30% of their salary as all forms of tax to the Central Government, even if these is any increase of salary upto 40% then also,part of the increase will also go to  Central Government as revenue.

           India's tax revenues nearly  about Rs 14 lakh crore currently  can be increased to over Rs 40 lakh crore. if proper taxation policy is adopted , that means  majority of citizens of the country  should be uniformly taxed.           


              Corporate tax collection is  at Rs 2.05 lakh crore, the personal Income Tax collection, however, was  at Rs 1.19 lakh crore that is just 10% of the total revenue collection.

               According to Central Government sources  Corporates owe over Rs 2.46 lakh crore in taxes, total tax dues to the Central Government is around Rs 5 to 6 lakhs crores. The amount paid to CG employees for the 7th CPC is just 5% of tax dues to the Central Government.  CLICK HERE FOR REPORT   so there should not be much financial panic on  7th CPC impact on common man.


            If these dues are properly collected then Central Government can spend lot of money on the welfare schemes and also pay the Central Government Employees being a model employer handsomely pay us  on par with the global market,  Software companies.

           So comrades , the Indian tax   system should be re modeled so that proper tax system is there and every citizen of India should   have uniform tax policy and Central Government revenue should also improve and also the Government Employees are paid need based minimum wage or a decent wage, also filling up of vacant post in Central Government will also give employment  to younger generation. 

    Comradely yours

(P.S.Prasad)
 General Secretary
          
            


Sunday, March 16, 2014

Shiva Gopal Mishra GS AIRF, Unanimously elected as Secretary of Staff Side NC- (JCM)




PRESS RELEASE 

New Delhi: 13th March, 2014 – The Staff Side of the National Council (Joint Consultative Machinery), in its meeting held on 11th March, 2014 to condoled the sad demise of Late Shri Umraomal Purohit, Secretary, Staff(NC/JCM), had unanimously elected Shri Shiva Gopal  Mishra, General Secretary, All India Railwaymen’s Federation, as Secretary, Staff  Side, National Council (JCM).

This post was vacant due to sad demise of Com. Umraomal Purohit  on 27th February, 2014, who held this post for more than three and half decades.

The JCM is an umbrella organisation for about thirty six lakh Central Government employees working in different departments, such as Indian Railways, Defence(Civilian), Postal, Cabinet Secretariat,  Income Tax etc.

Thursday, March 6, 2014

7th CPC terms of reference and further struggles.

Comrades,
                   The union cabinet held on 28th February, 2014 has approved the terms of  7th CPC in its almost a last meeting of union cabinet, the following are the achievements of our movement in last three years and what we should do to rectify the terms of reference.

Let us start thinking about the 6th CPC and its implications, we all know that 6th CPC was constituted only in the year 2006, actually it should have been constituted in the year 2004. Now the Confederation has started its struggle in the last three years for the constitution on 7th CPC and major demands of CG Employees such as DA merger, 5 years wage revision, IR etc.

Now only the Confederation has started its struggle in last three years, whereas other unions has only extended support only by writing letters, no struggle was carried out others. Today we have won half battle that is constitution on 7th CPC . Further there is a possibility of date of effect change from 2016 to 2014, as in the terms of reference under (h) To recommend the date of effect of its recommendations on all the above. that means the 7th CPC commission may grant 2014 or not . If it grants 2014 then we can demand IR, DA merger etc even revision of TA rates & OTA rates.The 7th CPC can send an interim report on these. 

The Central Government has not  consulted the staff side of the JCM on the terms of reference. Many issues have not been settled by the  Central Government including GDS issue, Bank employees pay revision like so on, this shows the negative attitude of the  Central Government policy towards working class, in spite of all these negative attitude, we have achieved the constitution of  7th CPC through our struggles but for Confederation efforts we could not have got 7th CPC constituted.  Government being a model employer has to pay decently, as we are cream in the society.

The many unions  have today writing for change of terms of reference for making direct reference in 7th CPC for DA merger and IR, if these unions had co-operated with us from past one year through joint struggles, we could have had better terms of reference.

    Today also it is not too late we can demand IR, GDS inclusion. date of effect from 1/1/2014, DA merger by representing it to 7th CPC and through joint struggles of Central Government Employees in August 2014.

 Now let us not lose hope on DA merger, GDS inclusion ,IR and date of effect through more struggles  we will achieve all these. Earlier also during 5th CPC we got better deal after the Union Cabinet had to modify the recommendations of the 5th CPC fitment formula from 20% to 40%. Till next two years there shall be series of struggles till we succeed.  

Comradely yours

(P.S.Prasad)
General Secretary         

Wednesday, March 5, 2014

Womens Day on 10/3/13 at GPO

INTERNATIONAL WOMENS’ DAY CELEBRATION

ON 10.03.2014 AT MEGHDOOT AUDITORIUM, 5TH FLOOR, GPO BUILDING, RAJ BHAVAN ROAD, BANGALORE 560 001 FROM 3.00 PM TO 5.30 PM

ALL ARE CORDIALLY REQUESTED TO BE PRESENT AND PARTAKE IN THE PROGRAMME
by
Confederation of C.G.E.W Karnataka State &
AIPAEA BANGALORE.

GPF Rate of interest at 8.7%

Tuesday, March 4, 2014

Private hospitals to stop CGHS cashless scheme from March 7

States want Centre to share burden from 7th pay panel


CLICK HERE FOR REPORT 
The government has cleared the terms of reference for the for central , but the , which usually follow central norms in fixing for their employees, want to be adequately compensated for the hit they would have to take on their exchequer.

They want the to direct the to compensate states for implementing pay scales, to be recommended by the pay panel.

Although implementing central pay panel's recommendations is not mandatory for the states, most states might do so given the precedent. As such, they sought assistance from the Centre, while sending their inputs on the Commission to the Union government.

state governments such as Gujarat, Punjab ,  Bengal , Assam, Karnataka, Manipur and Himachal Pradesh wanted the 14th Finance Commission which would submit its report later this year - to adequately compensate those state governments which wish to implement the recommendations of the seventh pay commission.

http://timesofindia.indiatimes.com/india/Cant-afford-7th-pay-panel-burden-say-Gujarat-Bengal/articleshow/31014085.cms
 

Monday, March 3, 2014

Confederation Message for Action

Dear Comrades,

The Union Cabinet approved the Finance Ministry’s proposal on terms of reference of the 7thCPC.  We have placed the full text of the same on our website.  None of the suggestions made by the Staff Side was accepted by the Government. 
However, our concern over the date of effect seems to have been taken note of.  The terms of reference has left the effective date of its recommendations to be decided by the Commission itself.  A united stand backed up by struggles will enable us to clinch this demand in our favour.  Undoubtedly it has been our endeavours and the two days strike action that has compelled the Government to have a rethinking on their earlier stand of Decennial (Ten years} wage revision for Central Government employees and the date of effect as 1/1/2016

Unlike on the earlier occasion, the Government has not decided to grant Interim Relief and merger of Dearness allowance.  Nor has it asked the Commission to consider and make appropriate recommendation in this regard specifically.  As pointed out in our earlier communication, inclusion of a labour representative in the Commission being not an idea the UPA Government cherishes, for it is diametrically opposite to its economic policies and ideology, they have stuck to the position of sandwiching the Honourable Judge with bureaucrats.  In the light of the agreement penned by Com. Mahadeviah, the General Secretary of the recognised GDS union with the Postal Board to the effect that a separate one man committee will look into the service conditions of the Grameen Dak Sewaks, it is not surprising that the Government chose to ignore our demand to cover them within the ambit of the 7th CPC.   Our demands for parity between the past and present pensioners and scrapping of the new pension scheme also stand rejected. 

As you are aware, the 6th CPC (and the earlier Commissions also) had refused to entertain the demand for removal of anomalies despite Government referring the same to the Commission specifically.  Therefore, the omnibus clause in the terms of reference requiring the Commission to submit interim reports may not be of any help to us to raise the anomalies before the 7th CPC.

At the conclusion of the meeting held on 24/10/2013 by Secretary, DoPT, with the staff side on terms of reference of the 7th CPC, it was agreed that the Government will consider our suggestion in the matter and will convene another meeting with the presence of Secretary (Expenditure) to iron out the differences, if any, and explore the possibilities of an agreement in the matter. But no such meeting was convened and no attempt was made by the official side to arrive at an agreed Terms of Reference.

We must now react to the arbitrary and unilateral decision of the Government.  We appeal all the State Secretaries, District Secretaries and Branch Secretaries of the affiliated organisations and the State/District COCs to immediately send the following Savingram to the Prime Minister.

THE CENTRAL GOVERNMENT EMPLOYEES WORKING IN THE    ..........................................(NAME OF THE STATION)/ OFFICE OF...........................CONDEMN THE ATTITUDE OF THE GOVERNMENT IN NOT HONOURING ITS COMMITMENT OF HOLDING DISUCSSION WITH THE STAFF SIDE JCM NATIONAL COUNCIL BEFORE FINALISING THE TERMS OF REFERENCE OF THE 7TH CPC AND DEMAND IMMEIDATE ACCEPTANCE OF :

(i)            Interim Relief
(ii)          Merger of DA
(iii)         Bringing the Grameen Dak Sewaks within the ambit of the 7th CPC
(iv)         Date of effect from 1/1/2014
(v)          Parity in pension entitlement between the past and present pensioners
(vi)         Coverage of the existing defined benefit pension scheme to employees recruited on or after 1.1.2004.
(vii)       Include a representative of the Labour in the 7th Central Pay Commission.
(viii)     Settle the anomalies raised in the National Anomaly Committee

While the National Convention scheduled to be held at Nagpur will chalk out detailed and phased programmes of action, we call upon our State Committees and Affiliated Unions to organise massive demonstration in front of all offices and important centres on 7th  March, 2014 (Friday) or any other immediate convenient date. Kindly instruct all the Branches to mobilise their members so that the demonstration has the participation of cent per cent of the membership of the concerned branch.  The State Units and affiliated Unions may issue pamphlets and posters and ensure its wide circulation throughout the country.

As already declared by the National Secretariat of the Confederation, we shall have to go for an indefinite strike action immediately after the General Election if our demands are to be settled.

With Greetings,
Yours fraternally,
M. KRISHNAN.

Secretary General. 

7th CPC Notification Issued

Saturday, March 1, 2014

Comparison of Terms of Reference of 6th and 7th CPC


There is no much difference between both 6th & 7th CPC in terms of reference except to recommend the date of effect of 7th CPC  recommendations: 

Terms of Reference of the Sixth Central Pay Commission :-
A. To examine the principles, the date of effect thereof that should govern the structure of pay, allowances and other facilities/benefits whether in cash or in kind to the following categories of employees :-
1. Central government employees – industrial and non-industrial.
2. Personnel belonging to the All India Services.
3. Personnel belonging to the Armed Forces.
4. Personnel to the Union Territories.
5. Officers and employees of the Indian Audit and Accounts Department.
6. Members of the regulatory bodies (excluding the RBI) set up under Acts of Parliament*.
7. Officers and employees of Supreme Court of India**. 

B. To transform the Central Government Organisations into modern, professional and citizen-friendly entities that are dedicated to the service of the people. 

C. To work out a comprehensive pay package for the categories of Central Government employees mentioned at (A) above that is suitably linked to promoting efficiency, productivity and economy through rationalization of structures, organizations, systems and processes within the government, with a view leveraging economy, accountability, responsibility, transparency, assimilation of technology and discipline. 

D. To harmonize the functioning of the Central Government Organisations with the demands of the emerging global economic scenario. This would also take in account, among other relevant factors, the totality of benefits available to the employees, need of rationalization and simplification, thereof, the prevailing pay structure and retirement benefits available under the Central Public Sector Undertakings, the economic conditions in the country, the need to observe fiscal prudence in the management of the economy, the resources of the Central Government and the demands thereon on account of economic and social development, defence, national security and the global economic scenario, and the impact upon the finances of the States if the recommendations are adopted by the States. 

E. To examine the principles which should govern the structure of pension, death-cum-retirement gratuity, family pension and other terminal or recurring benefits having financial implications to the present and former Central Government employees appointed before January 1, 2004. 

F. To make recommendations with respect to the general principles, financial parameters and conditions which should govern payment of bonus and the desirability and feasibility of introducing Productivity Linked Incentive Scheme in place of the existing ad hoc bonus scheme in various Departments and to recommend specific formulae for determining the productivity index and other related parameters.

G. To examine desirability and the need to sanction any interim relief till the time the recommendations of the Commission are made and accepted by the Government. 

*A. vi substituted by Ministry of Finance Resolution No.5/2/20006-E.III (A) dated the 7th December, 2006.
**A. vii substituted by Ministry of Finance Resolution No.5/2/2006-E.III (A) dated the 8th August, 2007.

The Commission will devise its own procedure and may appoint such Advisers, institutional consultants and experts, as it may consider necessary for any particular purpose. It may call for such information and take such evidence, as it may consider necessary. Ministries and Departments of the Government of India will furnish such information and documents and other assistance as may be required by the Commission. The Government of India trusts that State Governments, Service Association and others concerned will extend to the Commission their fullest cooperation and assistance.

The Commission will have its headquarters in Delhi.
The Commission will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending reports on any of the matters as and when the recommendations are finalized.


7th Central Pay Commission Terms of Reference – Cabinet approved TOR of 7th CPC

7th Central Pay Commission
            The Union Cabinet today gave its approval to the Terms of Reference of 7th Central Pay Commission (CPC) as follows:-
 
a)      To examine, review, evolve and recommend changes that are desirable and feasible regarding the 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 to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure 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. 

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.
 
The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the 7th Central Pay Commission.
 
Background
 
            Central Pay Commissions are periodically constituted to go into various issues of emoluments’ structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required.