New Delhi: With widespread resentment against the “meagre” pay hike implemented in the 7th Pay Commission and not get the the higher allowances, central government employees are annoyed with PM Modi government.

They are annoyed at little pay hike without allowances.

The Prime Minister Narendra modi government has fixed the minimum pay at a meagre Rs 18,000 in the 7th Pay Commission. In the last Pay Commission, the basic pay was Rs 7,000. The government multiplied it by 2.57 (fitment formula) and came to Rs 18,000. The employees unions are demanding 3.68 fitment formula.

The major contention is on the minimum pay, which unions are demanding to be Rs 26,000.

The employees unions had a meeting with a group of ministers, including the Home Minister Rajnath Singh, Finance Minister Arun Jaitley and Railway Minister Suresh Prabhu on the evening of June 30, 2016. The ministers said it will be considered and would be referred to High Level Committee.

The ministers assured the employees unions of hiking minimum pay but the government now decided not to appoint High Level Committee to examine the 7th Pay Commission recommendations in respect of minimum pay.

“The government will not clear any proposal on hike in minimum Pay including others pay related matter under the 7th Pay Commission recommendations because the cabinet had already passed it. Hence cabinet only will take higher allowances which was not given nod by it”, the top Finance Ministry sources told The Sen Times.

The government had set up the committee on allowances headed by Finance Secretary to examine the recommendations of 7th Pay Commission on allowances other than dearness allowance for cabinet nod in July, 2016 as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. The committee on allowances was given four months by the government to complete its task.

The government gave the extension of the term of the committee on allowances up to February 22, 2017 in November.

However, the committee on allowances head Finance Secretary Ashok Lavasa said in October, 2016, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”

The government gave the extension on the pretext of demonetisation for getting normalized the position of the cash crunch.

Now, the government said that the higher allowances may be announced in March after the completion of five states assemblies poll process as the model code of conduct has come into effect from January 4 and the implementation is to come in April after nine to ten months of getting basic pay hike of the central government employees.

The sources told us that the government had no plan to give allowances in arrears from August.

So, the 7th pay commission recommendations gave an agonizing pain for the central government employees.

TST

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New Delhi: Finance Minister Arun Jaitley told lawmakers on Friday that he would need more money in the current fiscal year to cover the cost of 7th Pay Commission Pay hike for 10 million central government employees and pensioners.

The government will require “some enhancement” for spending on salaries and pensions in 2016-17 to absorb the off-cycle pay hikes announced in June on the recommendation of the 7th Pay Commission.

The government faces a challenge to achieve its fiscal deficit target of 3.5 percent of GDP in the current fiscal year, but is “quite optimistic” of fully achieving the target of 3 percent in 2017/18, the finance ministry said in the Medium-Term Expenditure report tabled in parliament’s lower house.

Rating agencies such as Moody’s have said that the increase in wages would boost consumer demand, leading to inflationary pressures and making it difficult for the next governor of the Reserve Bank of India to achieve its inflation target.

Prime Minister Narendra Modi’s government has just confirmed a central inflation target of 4 percent, plus or minus 2 percentage points, that was agreed with departing governor Raghuram Rajan for the next five years.

Total federal spending on salaries and pensions is estimated to rise about 10 percent in the next fiscal year to 2.58 trillion rupees ($38.6 billion) compared with budget estimates for the current fiscal year.

Reuters

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Some good news for government employees anticipating Centre’s response to their demands on salary hike! As per reports, government may agree to reinstate some of the allowances that were subsumed by the 7th Pay Commission’s recommendations.

7th Pay Commission – If not Hefty Pay Hike, Govt Likely to Restore Allowances – The employees have been demanding that allowances which are stated to be subsumed and which are clubbed with others also need to be looked at.

Central government employees have been claiming that the 7th CPC has recommended to abolish large number of allowances and interest free advances without going into the exact relevance in certain departments where the allowances are provided for.

The employees have been demanding that allowances which are stated to be subsumed and which are clubbed with others also need to be looked at.

Pay commission had suggested abolition of many privileges and facilities including risk allowance, small family allowance, festival advance and motor cycle advance etc in its recommendations.

Following are the demands of the central government employees regarding reinstatement of allowances that were hit by the 7th CPC recommendations:

1. Retain the rate of house rent allowance in place of the recommendation of the Commission to reduce it.
2. Restructure the transport allowance into two slabs at Rs. 7500 and 3750 with DA thereof removing all the stipulated conditions.
3. Fixed conveyance allowance: This allowance had no DA component at any stage_ This allowance must be enhanced to 2.25 times with 25% DA thereon as and when the DA crosses 50%
4. Restore the island Special duty allowance and the Tripura Special compensatory remote locality allowance.
5. The special duty allowance in NE Region should be uniform for all at 30%
6. Overtime allowance whenever sanction must be based upon the actual basic pay of the entitled employee.
7. Cash handling /Treasury allowance. The assumption that every transaction in Government Departments are through the bank is not correct. There are officials entrusted to collect cash and therefore the cash handling allowance to be retained.
8. Qualification Pay to be retained.
9. Small family norms allowances to be retained.
10. Savings Bank allowance to be retained.
11. Outstation allowance to be retained.
12. P.O. & RMS. Accountants special allowance.
13. Risk allowance.
14. Break-down allowance.
15. Night patrolling allowance.
16. Special Compensatory hill area allowance.
17. Special allowance for Navodaya Vidyalaya Staff.
18. Dress Allowance ceiling to be raised to Rs. 32,400 per annum.
19. Nursing Allowance to be raised to 2.25 times of Rs 4800.
20. All fixed allowances must be raised to 2.25 times as per the principle enunciated by the Commission.

Restore the following advances and revise the same to 3 times.

• Natural calamity advance.
• Festival Advance.
• LTC and TA advances.
• Medical advance.
• Education advance.
• Vehicle advances including cycle advance.

Source: Zee News

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