Monday 31 August 2015
Seventh Pay Commission Reports Coming Shortly, Says FM Jaitley
New Delhi: Finance Minister Arun Jaitley today said that reports of Seventh Pay Commission for central government employees was coming shortly.
Finance Minister Arun Jaitley
“The recommendations of Seventh central Pay Commission for government employees is coming shortly,” Jaitley told ET NOW.
The Seventh Pay Commission, which was set up by the UPA government, was required to submit its report by August-end.
The Seventh Pay Commission was ready to submit its report by the end of September but government gave nod to submit its report till December 31.
The reports of Seventh Central Pay Commission may be implicated from April next year as Finance Minister Arun Jaitley today said that he will get the pay panel reports shortly.
The central government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.
The revised pay scales will be implemented retrospectively starting 1 January 2016, while recommendations relating to allowances will be implemented prospectively.
The Commission has already completed discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services and is in the process of finalising its recommendations.
The recommendations of the Seventh Pay Commission are scheduled to come into effect from January 1, 2016.
The Commission is headed by Justice A K Mathur. Meena Agarwal is secretary of the Commission.
The Sixth Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and the fourth from January 1, 1986.
DOPT instruction for Representation from Government servant on service matters
F. No. 11013/08/2013-Estt(A-III)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
Establishment A-Ill Desk
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
Establishment A-Ill Desk
OFFICE MEMORANDUM
North Block, New Delhi
Dated August 31, 2015
Dated August 31, 2015
Subject: Representation from Government servant on service matters – reiteration of instructions – regarding.
The undersigned is directed to refer to O.M. of even number dated 6th June, 2013 wherein instructions have been issued on submission of representation by Government servants about their service matters. In spite of these instructions, it has been observed that Government servants including officers/ officials of para military forces and Army personnel continue to represent directly to the Prime Minister, Minister, Secretary (P) and
other higher authorities, directly.
other higher authorities, directly.
2. As per the existing instructions, wherever, in any matter connected with his service rights or conditions, a Government servant wishes to press a claim or to seek redressal of a grievance, the proper course for him is to address his immediate official superior, or Head of his office, or such other authority at the appropriate level who is competent to deal with the matter in the organisation.
3. Such submission of representations directly to other authorities by- passing the prescribed channel of communication, has to be viewed seriously and appropriate disciplinary action should be taken against those who violate these instructions. This can rightly be treated as an unbecoming conduct attracting the provisions of Rule 3 (1) (iii) of the Central Chill Services (Conduct) Rules, 1964. It is clarified that this would include all forms of communication including through e-mails or public grievances portal etc.
4. Attention in this connection is also invited to the provision of Rule 20 of CCS (Conduct) Rules, 1964 prohibiting Government servants from bringing outside influence in respect of matter pertaining to his service matter. Representation by relatives of Government servant is also treated as outside influence as clarified vide MHA OM No. F. 25/21/63-Estt.(A) dated 19.09.1963
5. It is reiterated that these instructions may be brought to the notice of all Govt servants including officers/ officials of para military forces and member of armed forces and action taken against those who violate these instructions.
(Mukesh Chaturvedi)
Director (E)
Director (E)
Friday 28 August 2015
STRIKE ON 2ND SEP, 2015: GOVT ASSURED ON BONUS ENHANCEMENT AND WAGES FORMULA.
Press Information Bureau
Government of India
Ministry of Labour & Employment
27-August-2015 21:05 IST
Inter Ministerial Committee Holds Wider Consultations with Trade Unions on Charter of Demands Appeals to Reconsider Proposed Call for Strike in View of Discussions
The Second meeting of Inter-Ministerial Committee (IMC) continued discussion on 12 Demands Charter of Trade Unions for the second day here today in continuation of discussions held yesterday. The Committee comprises Shri Arun Jaitley, Finance Minister, Shri Bandaru Dattatreya, MoS(IC) Labour and Employment, Shri Dharmendra Pradhan, MOS(IC) Petroleum and Natural Gas, Shri Jitendra Singh, MoS DOPT, and Shri Piyush Goel, MoS (IC), Power. During the discussions Trade Unions expressed concern and asked for clarifications on their demands. Addressing their concerns and expectations, the Finance Minister explained policies on which the Government is working and assured that the Government is committed to welfare of labour. Underlining the importance of role of Trade Unions, Shri Jaitely assured the Central Trade Unions that all labour laws reforms will be done with due discussions and tripartite consultations.
In view of the discussions held in conducive and cordial atmosphere, the IMC appealed to Trade Unions to reconsider the proposed call for strike on 2nd September, 2015.The Trade Unions have agreed to consider the appeal.
In view of the suggestions given by Central Trade Unions in the meetings held on 19th July, 26th August and 27th August, 2015, the Government assured the following:
1. Appropriate legislation for making formula based minimum wages mandatory and applicable to all employees across the country.
2. For the purposes of bonus the wage eligibility limit and calculation ceiling would be appropriately revised. Earlier in 2006-07 the calculation ceiling was decided at Rs.3500/- and eligibility limit was wage of Rs.10,000/- per month which is proposed to be revised to Rs.7,000 and Rs.21,000 respectively.
3. The Government is expanding the coverage of social security and working out ways to include construction workers, Aanganwari workers, ASHA workers and Mid Day Meal workers.
4. Regarding contract workers the Government assured that they will be guaranteed minimum wages. Moreover, the Government is working out ways so that workers of industries will get sector specific minimum wages.
5. Government has already enhanced minimum pension for EPFO members and every pensioner gets minimum pension of Rs.1000/- per month perpetually.
6. Labour laws reforms will be based on tripartite consultations as already stated by the Prime Minister. The States are also being advised to follow the tripartite process.
7. For strict adherence to labour law enforcement, advisory has been issued to the State/UT Governments and strict monitoring has been initiated by Central Government.
8. For employment generation Mudra Yojana, Make in India, Skill India and National Career Service Portal initiatives have been taken.
9. Abolition of interviews for all primary jobs which do not require any special knowledge/expertise, is being done for transparency and expediting the process of recruitment.
10. Inflation is lowest in the last many years excepting two items onion and pulses. Government is taking necessary steps to contain the higher prices of these two commodities also.
It was further clarified that there is no ban on filling up of vacancies in Government jobs and all concerned Departments are taking necessary action to fill-up these vacancies. It was further assured that the Government is committed to job security, wages security and social security to the workers. The issue of equal wages for equal work for contract workers is an issue requiring wider consultations and a committee will be constituted, if required.
Thursday 27 August 2015
Wednesday 26 August 2015
02.09.15
Dear Comrades,
I) As you are aware, the Central Trade Unions in the country have decided to organize yet another one day strike on 2nd September, 2015. They took the decision in the National Convention of the workers held at New Delhi on 26th May, 2015. The NDA Government, as expected, has intensified the pursuance of the neo-liberal economic policies. The two important enactments they had placed before the Indian Parliament seeks to (i) amend the existing labour welfare legislations, detrimental to the interest of the workers and (ii) virtually end the legislation passed by the UPA II Government in the matter of acquisition of land from farmers, both to favour the corporate houses. The amendments, once passed, will deprive the worker’s various welfare measures undertaken by the Government in the post independent era. It will, undoubtedly, have an adverse impact on the service conditions of the Central Government employees and officers in the days to come, as many of the present rules and regulations have been framed in consonance with the provisions of those enactments. The Confederation of Central Government Employees and Workers, to which most of the Civil Servants’ Associations and Federations are affiliated, being party to the National convention of the workers, have served the strike notice on 11th August, 2015 on 12 point Charter of Demands and would be mobilizing the employees in the strike action scheduled for 2nd September, 2015. As in the past, the strike will enlist the participation of a large number of Central Government employees.
In that background I appeal to all the constituent of JAC to extend moral/solidarity support to the Strike action on 02-09-2015 by conducting lunch hour’s demonstration at least on 02.09.15.
II) In the context of the continued procrastination on the part of the Central Board of Excise and Customs in settling the Department specific issues, especially the stagnation issues of all cadres and much delayed promotion to the different cadres, it is required to mount sustained and continuous programmes of actions under the banner of JAC
With fraternal regards,
Yours comradely,
LOKANATH MISHRA
Extension of the term of the 7th Central Pay Commission
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for the extension of the term of the 7th Central Pay Commission by four months up to 31.12.2015.
The 7th Central Pay Commission was constituted by the Central Government on 28.2.2014. According to the Resolution dated 28.2.2014, by which the Commission was constituted, it is to make its recommendations within 18 months of the date of its constitution that is by 27th August, 2015.
In view of its volume of work and intensive stake-holders’ consultations, the 7th Central Pay Commission had made a request to the Government for a four month extension up to 31.12.2015.
Thursday 20 August 2015
Selection of nominees for National Youth Leaders Awards for the yr. 2014-15 ( click below)
07-05-2015 new
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O.M. dt. 23-Apr-2015 regarding selection of nominees for National Youth Leaders Awards for the yr. 2014-15
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Wednesday 19 August 2015
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 recommedations in Parliament.
The Speech is critically reviewed by Comrade Elangovan of DREU.
I am reproducting 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% becomesRs.100619 crores.
2. While going through the earlier framework statements I have come to the conclusion that the ‘salaries’ shown is pay with normal increments plus DA projected.
3. As per the estimated strength and provision there of statement laid as part of finance budget,the normal projection as PAY was Rs.60731 cr and so DA is Rs 31,108 as deducted from Rs 91 839 cr.The budget document does not give the DA expenditure separately. It gives the total expenditure on all allowances. I have therefore arrived at the figure based on calculations. However I have sought the expenditure on DA, HRA, and Transport Allowance separately through RTI.
4. The increase proposed is Rs.100619 cr from Rs.91,839cr which means that there will be an increase of Rs.8780 cr. There won’t be any DA after 1-1-2016 up to 31-3-2016 in the fiscal 2015-16.Therefore the whole increase is on basic pay in this fiscal.
5. As we have already seen that the basic pay is Rs.60731 cr. the increase of Rs.8780 cr. is over this Rs.60731.This increase is 14.45% only.The expenditure projected for 2016-17 is Rs.1,12,000cr which is Rs.11,400 more over 2015-16 which works out to 11.32%. This is due to Increment, DA,HRA, TRA etc.The projection for 2017-18 is 1,16,000 cr.
6. If 40% of Basic Pay is to be given,the increase of expenditure in the fiscal 2015-16 must be Rs. 24000 cr as against the Rs. 8780 cr. The demand of JCM Staff side is that there must be an increase of 371% of basic pay as on 1-1-2016. With the 119% DA we would be drawing 219% already. The real increase demanded is 152% of Basic Pay.So not the 152% or 40% of 5th and 6th CPC is intended to be given to us. Only around 15% is going to be given.As The Terms Of Reference of 7TH CPC directs them to recommend only what is‘FEASIBLE AND DESIRABLE’to the Government.Now the Government InParliament states only 15% is FEASIBLE AND DESIRABLE. ARE WE TO ACCEPT IT.?Some PSUs got 15%. But that is for 5 years. But for Central Government Employees it is for Ten Years.Are We To Accept?
7. Pension expenditure for civilian pensioners was estimated to be Rs.27,145cr and defence pension Rs.54,500 cr. The total is Rs.81645 cr. This is expected to go up to Rs.88521 cr, which is an increase of Rs.6876 cr.As there will be no Dearness Relief for the fiscal 2015-16 the increase is to be accounted only to Basic Pension.
8. I have sought the expenditure break up for dearness relief under RTI. However the rough calculation shows a near increase of same 15% in Pension.
9. The impact of 6th CPC on expenditure as per estimated strength of establishment and provision there of in respect of Central Government civilian employees was as follows:
ARREARS Rs 26084 cr. For three years mostly on Pay and DA regular PAY Increase per annum: Rs 8685 cr. These are actual figures.The 219% ofRs. 8685 cris Rs.19000 cr. EVEN THIS IS NOT GIVEN.
10.We must issue a warning to the government afresh demanding acceptance of our demand.I recall my earlier note where in I had quoted BibekDebroy’s report that the 7th CPC will not be that destabilisingto the Government as that of 6th CPC. GOVERNMENT PROVES THAT.
The Speech is critically reviewed by Comrade Elangovan of DREU.
I am reproducting 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% becomesRs.100619 crores.
2. While going through the earlier framework statements I have come to the conclusion that the ‘salaries’ shown is pay with normal increments plus DA projected.
3. As per the estimated strength and provision there of statement laid as part of finance budget,the normal projection as PAY was Rs.60731 cr and so DA is Rs 31,108 as deducted from Rs 91 839 cr.The budget document does not give the DA expenditure separately. It gives the total expenditure on all allowances. I have therefore arrived at the figure based on calculations. However I have sought the expenditure on DA, HRA, and Transport Allowance separately through RTI.
4. The increase proposed is Rs.100619 cr from Rs.91,839cr which means that there will be an increase of Rs.8780 cr. There won’t be any DA after 1-1-2016 up to 31-3-2016 in the fiscal 2015-16.Therefore the whole increase is on basic pay in this fiscal.
5. As we have already seen that the basic pay is Rs.60731 cr. the increase of Rs.8780 cr. is over this Rs.60731.This increase is 14.45% only.The expenditure projected for 2016-17 is Rs.1,12,000cr which is Rs.11,400 more over 2015-16 which works out to 11.32%. This is due to Increment, DA,HRA, TRA etc.The projection for 2017-18 is 1,16,000 cr.
6. If 40% of Basic Pay is to be given,the increase of expenditure in the fiscal 2015-16 must be Rs. 24000 cr as against the Rs. 8780 cr. The demand of JCM Staff side is that there must be an increase of 371% of basic pay as on 1-1-2016. With the 119% DA we would be drawing 219% already. The real increase demanded is 152% of Basic Pay.So not the 152% or 40% of 5th and 6th CPC is intended to be given to us. Only around 15% is going to be given.As The Terms Of Reference of 7TH CPC directs them to recommend only what is‘FEASIBLE AND DESIRABLE’to the Government.Now the Government InParliament states only 15% is FEASIBLE AND DESIRABLE. ARE WE TO ACCEPT IT.?Some PSUs got 15%. But that is for 5 years. But for Central Government Employees it is for Ten Years.Are We To Accept?
7. Pension expenditure for civilian pensioners was estimated to be Rs.27,145cr and defence pension Rs.54,500 cr. The total is Rs.81645 cr. This is expected to go up to Rs.88521 cr, which is an increase of Rs.6876 cr.As there will be no Dearness Relief for the fiscal 2015-16 the increase is to be accounted only to Basic Pension.
8. I have sought the expenditure break up for dearness relief under RTI. However the rough calculation shows a near increase of same 15% in Pension.
9. The impact of 6th CPC on expenditure as per estimated strength of establishment and provision there of in respect of Central Government civilian employees was as follows:
ARREARS Rs 26084 cr. For three years mostly on Pay and DA regular PAY Increase per annum: Rs 8685 cr. These are actual figures.The 219% ofRs. 8685 cris Rs.19000 cr. EVEN THIS IS NOT GIVEN.
10.We must issue a warning to the government afresh demanding acceptance of our demand.I recall my earlier note where in I had quoted BibekDebroy’s report that the 7th CPC will not be that destabilisingto the Government as that of 6th CPC. GOVERNMENT PROVES THAT.
Tuesday 18 August 2015
7th Pay commission is not going to recommend lowering the retirement age – Reports
7th pay commission will submit its report by the end of September
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. The Sixth Pay Commission had submitted its report a little ahead of its deadline on 24 March 2008. The revised pay scales were implemented retrospectively starting 1 January 2006, while recommendations relating to allowances were implemented prospectively. The finance ministry apprehends that salary and pension expenditure will both rise by around 16% in 2016-17 as a result of the implementation of the Pay Commission recommendations. This may allow capital expenditure to grow by no more than 8% during the year, leaving little room to aggressively push for an infrastructure build-up. “The 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 2015-16 budget presented in February. The official cited earlier said the Pay Commission report needs to be effective from 1 January 2016, or by April 2016 at the latest. “It will be the government’s prerogative when to implement it. But beyond 1 January 2016, there will be arrears. But then, the government will be subject to criticism. Earlier, they had hidden behind Pay Commissions giving late reports,” he added. However, the official said the commission is likely to maintain the status quo on the retirement age of central government employees, currently 60 years. “We are not going to either recommend lowering or raising the retirement age. If we lower the age limit, the pension burden will bust the government’s medium-term fiscal targets,” he added. Asked whether government has sent any directives to the commission on the kind of hike it can afford, the official said the message it has got broadly is to keep the hikes low. “Merge the basic with dearness allowance, don’t stretch it beyond—that is the message. But that is a good message for the government to send. But there is no pressure otherwise. In fact, there is a lot of cooperation,” he said. The official said merging basic pay with dearness allowance, which is mandatory, would itself mean a 155% rise for central government employees. “We have to decide how much to give above that. So, it will look good if you compare basic to basic,” he added. On whether the commission will recommend performance-based pay bands, he said it will make some feasible recommendations, though he couldn’t guess if the government would accept them. The Sixth Pay Commission had also recommended performance-based pay revisions, but the government is yet to implement them. “Eighty-eight percent of central government employees are industrial and non-industrial workers working with railways, post, paramilitary and army. So, performance-based pay revision is the wrong instrument for them. Biggest growth in government services is in paramilitary forces, where staffs in Central Reserve Police Force and Central Industrial Security Force have gone up by 75-80% in the last 10 years. By the time we have dealt with them, the bureaucracy is an afterthought. It does not affect anything,” he added. D.K. Joshi, chief economist at rating agency Crisil Ltd, said the government is expected to be restrained in its pay hikes this time around, given the low inflation level and tepid growth momentum. “The last two Pay Commissions had significantly bumped up demand and fiscal deficit. But the government is unlikely to be populist this time. It has already showed restraint in the hike in minimum support prices for farmers,” he said. However, Joshi said the Pay Commission will have a permanent income effect as well as a one-time impact through the payment of arrears, which will lead to increase in demand for consumer durables.
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