Government is mulling an increase in the hike in pay to central government employees beyond 7th pay commission recommendations, a top Finance Ministry official, who did not wish to be named told The Sen Times here today.

Government will come out with a decision in this regard soon after consulting finance experts and weighing its pros and cons, he said.

Government is now considering to make only pay hike for its employees.

“The financial advisers of the government believe it could be tough to give arrears of the hike in pay as the government has been worried after the April-June GDP growth slipped to a three-year low of 5.7 percent but government believes it will bounce back in the second quarter. Among others, it observed that this year’s fiscal math is already stressed as public spending was front-loaded to offset slower private sector participation and cushion the impact of GST roll-out”, he revealed.

“All round development is possible only hike in basic pay with fitment factor 3.00 and minimum pay will be raised to Rs 21,000,” he said.

The 7th Pay Commission, led by Justice A K Mathur, earlier proposed minimum basic pay from Rs 7,000 to Rs 18,000 per month while the maximum basic pay from Rs 80,000 to Rs 2.5 lakh, which have been paid with arrears, effective from January 1, 2016.

The central government employees unions had expressed their dissatisfaction over the inadequate hike in basic pay in accordance to the pay panel recommendations.

They are demanding for hiking minimum pay Rs 18,000 to Rs 26,000 and the and asked to raising fitment factor 3.68 times from 2.57 times.

Stating that National Anomaly Committee (NAC) headed by Secretary, Department of Personnel and Training (DoPT) has been formed under pressure in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations, the official said, “The NAC meeting is likely to be held in October to confirm to hike the basic pay with fitment factor 3.00.”

Pointing out that the Finance Minister Arun Jaitley had promised to hike minimum pay after discussions with all stakeholders, he said, “government has made active efforts to fulfill the same”.

The proposal of hike in pay is likely to be sent to the Finance Minister Arun Jaitley from NAC, after which it will be placed before the cabinet. Official believes it will come into effect within January’ 2018.

TST

The post 7th Pay Commission: Government mulling over hike in pay without arrears appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Minimum wage and fitment formula hike issues

There are various reports in the news media, print media & social media regarding the hike in the minimum wage of Central Government employees from the existing Rs 18,000/-  to Rs 21,000/- and fitment formula from 2.57 to 3.00, which shall be implemented from 1st January 2018. The same shall be announced in the National Anomaly Committee due on 9th of October.

Comrades,

We cannot confirm this news, comrades we should concentrate on struggle path as the Confederation has given the series of programs , I hope the Government will implement the hike in minimum wage for CG employees and revise the fitment formula also from the existing 2.57 to 3.00 even though the Staff side JCM has demanded Rs 26,000/ as minimum wage and fitment formula of 3.56 , this hike should be from 1/1/2016 not 1/1/2018 as per media reports.

In fact the Central Government has to take the political decisions on the wage hike , in fact the group of ministers of the Central Government have agreed to raise the minimum wage for CG employees on 30th June 2016 . I hope the commitment of the union minsters shall be honoured now.

Secondly the economy of the country which was going very well during past three years has showed down ward trend in last one year as the GDP which was at 9.1 in 2015-16 has reduced to 5.7 in 2017-18 .The economic activity has to take place, it is also observed during the past one year, in spite of economic recessions, the Government revenue collection has increased considerably. To improve the economic activity of the country and increase the GDP the Central Government should spend its funds which is available with them .

If the Central Government increases the minimum wage and fitment formula for its employees, the Central Government employees gets back 40% of the wage increase through the Income Tax and GST . So hardly a Government servant is left out with 60% wage hike , here also he spends the amount credited to him , as such an economic activity is induced in the public which will help to create more demand and employment activity.

I hope the Central Government takes a political decisions on increase of minimum wage hike and fitment formula for more than one crore employees which will also benefit the public and the CG employees.

Issued by COC Karnataka

The post 7th CPC Minimum wage and fitment formula hike issues – CoC Karnataka appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

New Delhi: : A top most central government employees’ union leader on Friday said central government had been the villain in the implementation of the 7th Pay Commission recommendations in respect of higher allowances and employees had every right to demand arrears on higher allowances.

“The government had delayed in the implementation of the higher allowances. It had failed to handle the financial situation of the employees, according to arrears on higher allowances should be paid,” the leader said.

“Earlier the Finance Minister Arun Jaitley had claimed it must implement after four months of the basic pay hike but it failed to come true,” the leader added.

More than 18 to 19 months had passed since the 7th pay commission report was submitted and twelve months had elapsed since the union cabinet approved the 7th Pay Commission recommendations for salary hike of central government employees, but the Cabinet approved the recommendations on allowances on June 28 this year, which are being paid to the employees from July, 2017 without arrears.

The government has given higher basic pay in August 2016 with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance had referred to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

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

But the government had gave extension to the committee up to February 22, 2017 on the pretext of demonetisation and the government said that the cash crunch was the reason behind the delay in announcing higher allowances.

The announcement of assembly elections in five states had also given an excuse for the government as it couldn’t announce pay hikes till the model code of conduct is in place up to March 8.

The government was using delaying tactics to save the government money to pay higher allowances without arrears from August 16.

The delayed implementation of allowances have saved the government nearly Rs 40,000 crore.

The delay in the implementation of allowances is chiefly because of the financial gains of the government, while financial condition of the government is very sound.

The delay in implementation of the higher allowances has caused tremendous irritation and frustration among employees and they also expressed their resentment over the the announcement of non payment of arrears on allowances.

TST

The post 7th Pay Commission: Central government employees blame government for delay in higher allowances implementation appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

After the salary hike, as per the recommendations of the 7th Pay Commission was okayed for Bureau of Indian Standards, it is now the UPSC chairperson’s turn to get a massive three-fold hike in salary.

President Pranab Mukherjee on Wednesday cleared the proposal of salary hike of Union Public Service Commission (UPSC) chairperson as per the recommendations of the 7th Pay Commission. After President’s approval, UPSC chairman shall receive a pay of Rs 2,50,000 and each of the other members shall receive a pay of Rs 2,25,000 per mensem under the 7th Pay Commission.

Before the implementation of the 7th Pay Commission, chairman and members of the UPSC, a constitutional body that conducts the prestigious civil services examination, used to get a monthly salary of Rs 90,000.

“The hike in salary was necessitated due to implementation of the 7th Pay Commission (7CPC) recommendation that has resulted in increase of salaries of all Central government employees,” a senior government official said. “The salary of UPSC chief will now be that of Cabinet Secretary and members’ monthly remuneration will be that drawn by a secretary-level officer,” he said.

The 7th Pay Commission had recommended a 14 per cent hike in salary to government officials, which has been accepted by the government. As per the 7th Pay Commission recommendations, the minimum salary of a central government employees has been increased from the current Rs 7,000 per month to Rs 18,000 per month. The salary of cabinet secretaries has been increased up to a minimum of Rs 2.5 lakh per month against the current salary of Rs 90,000. The gratuity ceiling has been increased from Rs 10 lakh to Rs 20 lakh.

The chairperson and members will also be entitled for travel allowance, medical facilities, Leave Travel Concession, conveyance allowance and such other conditions of service as are for the time-being applicable to equivalent pay in the Central government, the norms said.

The post 7th Pay Commission : Centre Approves 300% increase in Salary for UPSC chief, members appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

The finance ministry has also made arrangements for those autonomous body employees who do not meet these criteria to get salaries as per the revised pay scale.

The Ministry of Finance has come up with some good news for employees of autonomous bodies that are present under various departments and ministries of the Central government: These workers will get benefits of the recommendations of the 7th Central Pay Commission (CPC) although there is a string of conditions attached to the implementation.

These employees have expressed frustration in the past saying their wages have not been increased despite repeated assurances since the middle of last year. They were also disappointed over the news that their dues could get delayed further due to various reasons.

Now, the Ministry of Finance has said in a memorandum that the employees of these autonomous bodies – which are expected to be “financially self-sufficient” so as not to burdent the state exchequer – may get a revised pay scale as per the part of their salaries that deals with allowances, including dearness, house-rent and transport.

According to the ministry’s memorandum, the allowances of these employees can be increased in correlation with the pay panel recommendations only on the following three conditions:

1. The “conditions of service” of employees of an autonomous body, in particular those that pertain to work hours and over-time payment, are same as to those of the Central government employees.

2. The revised pay scale will also apply to those who opt for the aforementioned “conditions of service.”

3. The pension and provident fund deductions of these employees will happen on the basis of their revised pay structure.

Payments on other components of the salary will be revised to the CPC recommendations, said the memorandum. For other autonomous body enmployees

For employees of autonomous bodies, the working conditions of which do not match those of Central government employees, the ministry has proposed setting up of a group of officers for each autonomous body – with the departmental or ministerial financial advisor acting as the finance ministry’s representative – to determine whether and how much of an increase these employees will get. Of course, their recommendations will be implemented only after the ministry approves it.

The memorandum added: “The Central government has not taken any decision so far in regard to various allowances based on the 7th Central Pay Commission in respect of Central government employees and, therefore, until further orders the existing allowances in the autonomous organisations shall continue to be admissible as per the existing terms and conditions, irrespective of the revised pay scales having been adopted.”

The post 7th Pay Commission: Good news for autonomous bodies as government may give them salary hike, but with conditions appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Union Finance Minister Arun Jaitley will move the proposal of hike in DA on the basis of accepted formula for calculation under the 7th Pay Commission recommendation.

In a good news for 10 million central government employees, Narendra Modi government is likely to hike dearness allowance (DA) by 2 per cent ahead of the Dusshera festival. Union Finance Minister Arun Jaitley will move the proposal of hike in DA on the basis of accepted formula for calculation under the 7th Pay Commission recommendation, while the Union Cabinet is expected to clear the proposal of hike in DA in the next meeting. The 7th Pay Commission recommended the merging of 125 percent dearness allowance into the basic pay.

The Central government is likely to hike dearness allowance (DA) by 2 per cent, based on the data of the Consumer Price Index- Industrial Workers ( CPI-IW). “Average rate of Consumer Price Index-Industrial Labour from July 2015 to June, 2016 was 2.90 per cent. Thus, the Centre will increase dearness allowance by two as per accepted formula for calculation,” a Finance Ministry official working on the implementation of the 7th Pay Commission recommendations was quoted as saying by the Sen Times.

Unlike the 6th Pay commission, which had recommended the basic pay based on the Consumer Price Index 115.76 in January 2006, 7th Pay commission recommended new pay matrix, based on the Consumer Price Index 261.42. The government will use the data of CPI-IW from July 1, 2015 to June 30, 2016. The CPI (IW) of the months July, August, September, October, November, December, January, February, March, April, May and June were 263, 264, 266, 269, 270, 269, 269, 267, 268, 271, 275 and 277 respectively.

The Centre revised DA twice in a year on the basis of one year average of retail inflation for industrial workers as per the accepted formula. Last times, the government had increased DA by 6 percentage points from 119 to 125. The new rate of DA will be implemented from July 1, 2016. The cabinet approved the 7th Pay Commission’s recommendations for central government employees on July 29, which will impact some 47 lakh central government employees and 53 lakh pensioners.

The 7th Pay Commission notification confirmed that central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. The Cabinet also approved the increase in minimum pay Rs 18,000 from existing Rs 7,000. The 7th pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. However no final decision has been taken on the allowances by the government. The allowances had been a major bone of contention amongst majority of the central government employees.

The post 7th Pay Commission: Achhe Din for government employees, Centre likely to hike Dearness Allowance by 2 per cent before Dussehra appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Government may disburse Rs 34,600 crore to its employees as salary hike in August as arrears because of implementation of the 7th pay panel recommendations, India Ratings and Research said on Wednesday.

The government had last month announced that it will pay its employees arrears arising out of implementation of the 7th Pay Commission award at one go in August salary.

“The combined outgo for the Centre on account of arrears for January to July and payments for August will total Rs 34,600 crore,” Ind-Ra said in a statement.
The outgo due to the hike in salary and pension is unlikely to cause significant systemic liquidity disruption, it said.

According to Ind-Ra, the banking system liquidity will experience transient frictional tightness ahead of the payment of arrears.

“The government is likely to go slow on spending as it gears up to meet lumpy payments. Temporal adjustments notwithstanding, the overall liquidity conditions will be cushioned as RBI will transfer its profit to the government of India,” it said.

In the current fiscal, the Reserve Bank will transfer its surplus profit of Rs 65,876 crore.

Out of the Rs 1.02 lakh crore gross impact of the 7th Pay Commission on the exchequer, the Budget has made a provision to the extent of Rs 93,325 crore.

“Any shortfall arising out of the salary hike payment is likely to be marginal and will not significantly affect the country’s fiscal position,” the rating agency said.

There shall be two dates for grant of increment – January 1 and July 1 every year – instead of the existing July 1 only.

Source: ET

The post Government may pay Rs 34,600 cr salary hike arrears in August salary – India Ratings and Research appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

New Delhi, June 24: Prime Minister Narendra Modi led government is likely to pay highest percentage of salary hike to the lower rank government employees with the implementation of the 7th Pay Commission recommendations. The Prime Minister’s Office (PMO) has reportedly asked Cabinet Secretary Pradeep Kumar Sinha led Empowered Committee of Secretaries, that is examining the 7th Pay Commission recommendations, to increase the pay of lower grade employees.

The PMO told the Empowered Committee that the salaries of employees in the lower ranks should rise by the highest percentage, reported The Sen Times. The government decided to give highest percentage salary hike to bottom grades employees and maintain parity of incomes between mid-level tier officers and the bottom grade employees.

Notably, all pay commissions in the past had not only recommended highest percentage of salary hike for top central government officials but also considered the disparity ratio between its highest and lowest paid employees. The ration of highest and lowest paid employees was about 1:12 in 2006.

The 7th Pay Commission, headed by Justice A K Mathur, had originally proposed hike of 14.27 in basic pay, 23.55 per cent in salary, allowances and pensions. The Empowered Committee of Secretaries has reportedly recommended a whopping 30 per cent hike in government employees’s salary, making the minimum amount Rs 23,500 and the maximum to Rs 3,25,000.

The Empowered Committee of Secretaries will submit its final report later this month and the Cabinet will take final call on the 7th Pay Commission recommendations in July. 47 lakh central government employees and 52 lakh pensioners will be benefited from the recommendations of 7th Pay Commission.

Source : http://www.india.com/

The post 7th Pay Commission: Lower rank employees to get highest percentage salary hike appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

7th Pay Commission: Double bonus for Government employees – salary hike from August, six month arrears in October – Social Media

The post 7th Pay Commission: Double bonus for Government employees – salary hike from August, six month arrears in October – Social Media appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Around 47 lakh central government employees and 52 lakh pensioners are eagerly waiting for their revised salaries which has been earlier promised by the Narendra Modi government.

New Delhi, June 15: The long wait for the central government employees is likely to over, as the 7th Pay Commission on Monday recommended 30 percent hike in salaries. As per the proposed hike salaries the government had already started working to credit hiked salaries on the account of employees from August 1, 2016.
Around 47 lakh central government employees and 52 lakh pensioners are eagerly waiting for their revised salaries which has been earlier promised by the Narendra Modi government. A news reports on Monday suggested that employees and pensioners are expected to get 30 per cent more than what has been recommended by the panel, which submitted its report earlier this year.

According to Financial Express source, “Central government employees could get the revised pay-scales with their July salaries that would be credited on August 1″.

However, there were indications that the central government will also credit arrears with revised pay, it is not clear whether the past dues will be given to the employees at one go or in installments.

According to reports the 7th Pay Commission had recommended a minimum monthly basic salary of Rs 18,000 and maximum of Rs 2,50,000. With the 30 per cent hike the minimum basic monthly pay will be Rs 23,500 and the maximum will be Rs 3,25,000.

The 7th Pay Commission will impact the Central Budget by Rs 73,650 crore and the Railway Budget by Rs 28,450 crore. The 7th Pay Commission’s Empowered Committee of Secretaries met in the month of April to give the final finishing touch to the recommendations before the report was handed over to the Finance Ministry.

Source: India.com

The post 7th Pay Commission: From August 1 government employees will get hiked salaries appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.