Big Expectations from 7th CPC and Low possibilities projected by Union Finance Minister!

Honourable Finance Minister Shri.Arun Jaitely had spoken about the possible impact of 7th CPC recommendations in Parliament.

The Speech is critically reviewed by Comrade Elangovan of DREU.

I am reproducing the comments of Comrade Elangovan for the consideration of our members: 

  

7TH CPC WIL INCREASE CENTRAL GOVERNMENT PAY ONLY BY 15%. SHOULD WE ACCEPT?

 R.ELANGOVAN,

WORKING PRESIDENT, DREU

 1.     The Medium Term Expenditure Framework statement has not yet been uploaded in Finance Ministry’s website. However I have taken the figures provided by print media including The Hindu. As per their statement the expenditure on salaries will rise by 9.56% in the fiscal 2015-16 as a result of 7th CPC implementation over the normal estimated expenditure in the 2015-16 budget to Rs.100619 crores. This means that the expenditure projected was Rs.91,839cr which if increased by 9.56% becomes Rs.100619 crores.

WILL 7TH CPC RECOMMENDS 15.79% INCREASE IN SALARY???

7 th Pay Commission seeks one-month time extension - Commission is unlikely to recommend the lowering of the retirement age

The Seventh Pay Commission, 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.

Government to incur additional expenses due to 7th Pay Commission

Government to incur additional expenses due to 7th Pay Commission : Pay and Allowances of Central Government employees will increase one lakh crore in the current financial year and also projected to increase further due to recommendations of 7th Pay Commission.

“Salary is a big question for even profit-minded private concerns. It is therefore not surprising that the employees of service-oriented Central Government departments are so obsessed about their pays and allowances. For a few central and state government organizations that rake in huge profits, salaries and allowances to their employees is no big issue.”

30% salary hike confirmed in 7th Pay Commission for CG Employees

“The wages of public sector bank employees are revised once every five years. The recent 10th Bipartite wage agreement gave them an increase of 15%.”

United Forum of Bank Unions (UFBU) had initially put forth a demand of 21% wage hike. It was only after an extensive series of negotiations that the Indian Bank Association agreed to settle for 15%.

For Central Government Employees, once every ten years, a high level committee is constituted by Central Government to revise the pay and allowances. The commission will examine pay structure, concessions and facilities/benefits as well as retirement benefits of Central Staff based on Terms of reference given to them. The Commission has to submit its recommendations within 18 months of the date of its constitution.

7th Pay Commission Recommendations has begun to emerge!

“It doesn’t come as a surprise that even bits and morsels of information about the recommendations, which is being eagerly expected by nearly 50 lakh employees and pensioners, make headlines.”

The recommendations of the 7th Pay Commission have slowly started to make their way to the media in the form of unconfirmed news. The information that was being extensively discussed by all for more than a week now has finally made it to the websites yesterday.

It has now been confirmed that the 7th Pay Commission will submit is report to the Government next month. With the report being given a final shape, certain pieces of information have already started to hit the media. Some of the workable recommendations of the commission are out.

Paycommission update - from Railway Union source !

Recently we came to know from Railway Employees Union sources that seventh cpc, which is likely to submit it's report in the next month is going to recommend uniform multiplication factor as 2.86. Further the source also said that the present Grade Pay system is going to be abolished. Minimum pay is likely to be Rs 21000 against the union's proposal of Rs 26000.

Another source described that pay commission is going to suggest early retirement. 33 years of service or attaining 60 years of age, whichever is earlier, will be the exit time.

It is also reported that HRA pattern and percentage is likely to remain unchanged.

We do not expect our viewers to accept these information as authentic as none of the news mentioned above has any strong base. Still it is published here as each and every central employees and pensioners are being restless after waiting for more that one and half years and looking for any news (whether authentic or not !).

PROPOSED NEW PAY SCALES MINIMUM (AFTER MERGER) SUBMITTED TO 7TH PAY COMMISSION – INDWF

Oral evidence submitted by National Council(JCM) Standing committee and the VII CPC on 23.03.2015, 24.03.2015 and on 31.03.2015 respectively.

The JCM(NC), JCM Constitutents including INDWF jointly prepared the memorandum on pay Structure, Pay determination, Allowances, leave, women issues, LTC, TA/DA and Retirement benefits etc., on 30.06.2014. Similarly, on behalf of INDWF, we have submitted matters relating to Defence Civilian Employees on service matters on 28.07.2014.

Defence Federations were invited from 30th to 31st march, 2015. INDWF met the VII CPC on 31.03.2015 in the VII CPC office, New Delhi from 1030 HRs to 1200 HRs. [Click here to view the issues discussed by the Staff side National Council Staff side Standing Committee (JCM) and by INDWF]

TODAY 6% OF DEARNESS ALLOWANCE APPROVED BY THE UNION CABINET

Release of additional installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 1.1.2015

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2015 at the rate of six percent increase over the existing rate of 107 percent.

Hence, Central Government employees as well as pensioners are entitled for DA/DR at the rate of 113 percent of the basic pay with effect from 01.01.2015. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both DA and DR would be of the order of Rs. 6762.24 crore per annum and Rs. 7889.34 crore in the Financial Year 2015-16 ( i.e. for a period of 14 months from January 2015 to February 2016).

This will benefit 48 lakh government employees and 55 lakh pensioners.

Will there be a HIKE in 6% DA this week?

The Union Cabinet is likely to approve hiking dearness allowance (DA) to 113 per cent from existing 107 per cent benefiting 30 lakh central government employees and 50 lakh pensioners in its meeting scheduled in this week.

“The Union Cabinet will take a proposal to hike Dearness allowance for its employees and dearness relief for its pensioners to 113 per cent in next week as per agenda listed for the meeting,” a source said. The hike in DA would be effective from the January 1st this year.

Modi Govt May Implement Seventh Pay Commission Report From April 2016

Modi Govt May Implement Seventh Pay Commission Report From April 2016.

The Seventh Pay Commission drafted in to make a new pay structure for the 30 lakh Central government employees would not be able to submit its report in August this year, the Commission is likely to seek extension till October.

The reports of Seventh Pay Commission will be implicated from April next year as Finance Minister Arun Jaitley said in the Parliament on February 27, “The 7th Pay Commission impact may have to be absorbed in 2016-17.”

7th Pay Commission : Highlights of the demands of Central Government Employees to 7th CPC

1. Pay scales are calculated on the basis of pay drawn pay in pay band + GP + 100% DA by employee as on 01-01-2014.

2. 7th CPC report should be implemented w.e.f. 01-01-2014.

3. Scrap New Pension Scheme and cover all employees under Old Pension and Family Pension Scheme.

4. JCM has proposed minimum wage for MTS (Skilled) Rs.26,000 p.m.

Seventh Pay Commission likely to submit report in October 2015

After 14th Finance Commission, 7th pay panel’s report looms : LiveMint

Finance ministry fears that its revenue will be affected in 2016-17 as it has to absorb new pay panel recommendations

New Delhi: After the recommendations of the Fourteenth Finance Commission (FFC) forced the government to reduce its plan expenditure in the 2015-16 budget, the Union finance ministry fears its revenues will remain constrained in 2016-17 as well since it has to absorb the recommendations of the Seventh Pay Commission (SPC) in that year. 

The Seventh Pay Commission will submit its report by October 2015. 

Click here for details of provision for 7th CPC in union Budget -2015-16

“The 7th 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 macroeconomic framework statement laid before Parliament along with the budget on Saturday.

Provision for 7th Pay Commission in Budget 2015-16

The Budget is also gravely silent on fund allocations for the Seventh Pay Commission award, due for implementation in 2016.  The budgetary documents are stressing upon likely burden from the report of the 7th Pay Commission.  However the funds are allocated for Commission'ss establishment.  The extract of budgetry documents which are related to 7th CPC are mentioned below:-

Speech of Finance Minister - Heading Fiscal Roadmap para 23:-

Budget  2015-2016

Speech  of

Arun Jaitley

Minister of Finance

February 28,  2015

Fiscal Roadmap

23. I want to underscore that my government still remains firm on achieving the medium term target of 3% of GDP.  But that journey has to take account of the need to increase public investment.  The total additional public investment over and above the RE is planned to be `1.25 lakh crore out of which `70,000 crore would be capital expenditure from budgetary outlays.  We also have to take into account the drastically reduced fiscal space; uncertainties that implementation of GST will create; and the likely burden from the report of the 7th Pay Commission.  Rushing into, or insisting on, a pre-set time-table for fiscal consolidation pro-cyclically would, in my opinion, not be pro-growth.  With the economy improving, the pressure for accelerated fiscal consolidation too has decreased.  In these circumstances, I will complete the journey to a fiscal deficit of 3% in 3 years, rather than the two years envisaged previously.  Thus, for the next three years, my targets are: 3.9%, for 2015-16; 3.5% for 2016-17; and, 3.0% for 2017-18.  The additional fiscal space will go towards funding infrastructure investment.

***

Expected DA from January 2015 WILL BE 113 %(6%INCREASE)

The All-India CPI-IW for november, 2014 remained stationary at 253 (two hundred and fifty three).

In the coming months, if the AICPIN value remains at 253 or 1 to 4 point increase or decrease based (249 to 257) then we may get up to 6% DA increase i.e. 113%.below 249 for example(incase 248) 5 point decrease only get 5% DA

Download excel sheet-Expected-da-from-january-20152

Central government employees waiting for Interim relief – CG Staff News

Mumbai bureau Venu Gopal Arya writes an article regarding Interim Relief, he said, the declaration by the government may be done during or before the budget session. We present his view here to our blog viewers for easy understanding…

Central government employees waiting for Seventh Pay commission and interim relief

Staff union making up pressure on the Seventh Pay commission

• Pay commission was formed in February 2014

• Workers waiting for Interim Relief

• Pay commission busy with the necessary process

• Conditions will be applicable from 01 January 2016

• More than 50 Lakh Central government employees will be benefitted

Even though the Seventh Pay commission was formed by the Manmohan Singh government before the advent of Election for the sake of a Political advantage, this was pleasant news for the Central Government Employees.

Soon after the formation, the Pay commission has also started meeting the relevant Employee Organisations. Meeting different organisations and obtaining their opinions are still in progress. The Pay commission has also visited various cities for this cause.

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CLARIFICATION ON ADDITIONAL INCREMENT TO OFFICERS/OFFICIALS WHOSE DOI FALLS BETWEEN FEB TO JUNE 2006

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Central Government is planning to raise the Income Tax exemption slab to Rs. 5 Lakhs

According to information from the Finance Ministry, the Government is giving serious thoughts about raising the income tax exemption slab from the current Rs. 2 lakhs to Rs. 5 lakhs. The information adds that Modi is planning to make the raising of income tax exemption slab from Rs. 2 lakhs to Rs. 5 lakhs as one of the achievements of his Government’s tenure. The Finance Ministry has, it seems, sought a report regarding this from the Income Tax department. A number of other financial incentives are also likely to be announced by the Modi Government.

The Government has also planned to raise the tax exemption on housing loans. According to sources from the Finance Ministry, there are also plans to increase the tax exemption on medical insurance premium.

The reports add that Modi is trying to impress as many people as possible with the very first budget that his government is going to present. The demand for raising income tax exemption level to Rs. 5 lakhs has been a long-standing one. Economists and experts suggest that the slab be fixed in accordance to the current price and inflation levels.

Memorandum to VII CPC on merger of DA with Pay and Interim Relief

National Council (Staff Side)

Joint Consultative Machinery

for Central Government Employees

13-C, Ferozshah Road, New Delhi - 110001

Shiva Gopal Mishra

General Secretary

No.NC4JCM/2O14/VII CPC
Dated: June 3, 2014

Justice Shri Ashok Kumar Mathur,
Chairman,
Seventh Central Pay Commission,
New Delhi

Dear Sir

Sub: Memorandum to VII CPC on merger of DA with Pay and Interim Relief