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Showing posts with label PAY. Show all posts
Showing posts with label PAY. Show all posts

Centre may raise age of retirement by 2 years to 62 General elections' dates may be notified on March 5

Centre may raise age of retirement by 2 years to 62

General elections' dates may be notified on March 5 

The Congress-led United Progressive Alliance (UPA) is likely to take a major decision of increasing the retirement age of Central government employees by two years, from 60 to 62 this week. This would be applicable from March 1. 

It would be one of the major decisions to be taken by the Cabinet before the model code of conduct for the general elections kicks in. In the Thursday meeting, the Cabinet is also likely to recommend dates for the elections. These could be notified on March 5. 

"The government may clear the increase in age this week," said a source. It is likely to be a part of the terms of reference of the Seventh Pay Commission, expected to file its report in 2017. The panel, however, can recommend an interim relief through the move. 

The increase in retirement age would be happening after 15 years. In 1998, it was increased to 60 from 58 following implementation of the Fifth Pay Commission. Experts said it would defer payment of retirement benefits. However, sources confirmed this would not be applicable for employees retiring on February 28. 

The cabinet is expected to discuss a proposal to increase the dearness allowance by 10 per cent from January 1, to make it 100 per cent and merge 50 per cent of the increased dearness allowance with basic pay. The terms and conditions of the panel include a proposal to merge 50 per cent of dearness allowance with basic pay. 

The move to increase the retirement age may pressure the states to follow. The department of personnel and training was working on the proposal for quite some time. The Budget estimate on the pension outgo for 2014-15 is Rs 80,982 crore, 0.6 per cent of the gross domestic product. 

Source: http://www.business-standard.com

Impact of Merger of 50% DA in Basic Pay

http://sapost.blogspot.com/


Impact of Merger of 50% DA in Basic Pay already first published by us on 2 years before i.e. Dec, 16 2012.  This probable post was as per 5th CPC DA Merger.  Some website & blog are showing less benefit in DA merger.  The contents published by Cgen.in [http://centralgovernmentemployeesnews.in/50-da-merger/] is reproduced below:-

Everybody thinking as more benefit on 50% of DA merge with basic pay...not like that..!

It is essential to CG Employees, of course for others, getting from some other way in hike in regular income...

For Example, an employee's basic pay Rs.10000 as on 1.1.2011, after merging of 50% dearness allowance the calculation is clearly shows the difference only 50 rupees per month...

Basic Pay
Dearness allowance 51%
Total
Basic Pay
Dearness Pay
Remaining percentage of DA 1%
Total
Difference

10,000

5100

15100

10000

5000

150

15150

50

"Note that the 50% of Dearness allowance will not merged with basic pay, instead of the amount showing only as 'Dearness Pay'. This amount will pay upto only the date of implementation of 7th pay commission. 

This is only as a advance hike for all employees before the implementation of 7th CPC. 

When fixation of pay on the recommendations of 7th CPC on 1.1.2016 according to the revised pay rules, the amount of ‘basic pay’ will be taken without dearness pay. 

For example, approximately basic pay of the above employee will be 12,250 as on 1.1.2016 . This amount only will be taken as Basic Pay for the calculation of pay fixation against the amount of 18,375. 

The enhanced amount will be given for us as ‘Interim Relief’ for the period between announcement and implementation...It is not at all merged with ‘Basic Pay’..!

We can hear, what about hike in HRA and other entitlements...

The rate of HRA is provided according to the cities, like 10, 20 and 30%. Don't think all Central Govt Employees are getting 30%. And one more important points is the percentage hike in HRA will not applicable to those who are living in Government Quarters. In major metropolitan cities, thousands of employees are residing with Government Accommodation. They will pay more as HRA to Government and they don’t bother about increasing in HRA. 

Transport Allowance is providing according to their GP and classified cites, the amount is vary from 400 to 3200 plus DA thereon. The TA amount may decrease when 50% of DA merged with basic pay. 

So, ultimately hike in Basic pay only the factor is more beneficial in DA Merger.

But in 6th CPC there was no recommendation to convert dearness allowance as dearness pay each time the CPI increase by 50% over the base index recommended in pay commission report. 

All Central Government employees federations are showing maximum effort to achieve the demand of "Merger of 50% Dearness Allowance with Basic Pay" at this time. 

 Federations sources said, there will be chance to announce before March...!
****

The above expectation is the matter of discussion on following facts:

Dearness Allowance:  The rate of Dearness allowance taken in above example is 51% but this time rate of DA is 90% and already calculated to increased to be 100%.  In view of this table shown above will be from 1st April, 2014 as shown below:- 
Basic Pay
Dearness allowance 51%
Total
Basic Pay
Dearness Pay
Remaining percentage of DA 50%
Total
Difference

10,000

5100

15100

10000

5000

7500

22500

2500

The logic of 1% benefit shown in Cgen.in is not wrong but it was the benefit as on as on 1.1.2011 now DA is 100% and Govt is to be announce the 100% from the 1st Jan 2014 with retrospective date hence counting of benefit from the date 1.1.2011 is not feasible.  But what is correct? We should wait for govt. announcement.  

Interim Relief: As per Interim Relief previously given by Govt was a fix amount not based on any calculation and also was recoverable in Pay Commission arrears.  At this time grant of Interim Relief as per 1% of Basic Pay is also not looking comfortable for CG Employees.  Think about low paid salaried employees who are falling in GP 1800.  Then what will be given as Interim Relief? We should wait for govt. announcement.  

Basic Pay:  In 5th CPC only Basic Pay was the part of Pay Scale but in 6th CPC the Basic Pay is the combination of Pay in Pay Band and Grade Pay.  

HRA: In 5th CPC Basic Pay and Dearness Pay was the part of calculation of HRA.  After merger of DA in 6th CPC HRA should be as 5th CPC.  Because HRA is not increasing at the rate of 25% as like other allowances.  So logic of merger of DA benefit would not be effected on HRA is also not practicable.   But what is correct? We should wait for govt. announcement.  

At the end all news items are confirming that the merger of dearness allowance is the part of 7th CPC terms of reference there are many questions arising: 
1.  Is the benefit of merger of DA is the part of 7th CPC?
2.  Will the DR for Pensioner merged or not?

The answer of all questions will be answered by the govt notification.  Hope in this week there will be any good news from Govt side.

Courtesy : http://karnmk.blogspot.in/

Please comment on this

Rounding off the amount of Increment to next multiple of 10 : Clarification by CGDA

Sub : Rounding off the amount of Increment to next multiple of 10 : Clarification regarding.
Attention is invited to this HQrs Circular No. AN/XIV/14162/6th CPC/Circular/Vol.IV, dt. 29/0212012 wherein it was directed to adopt the methodology stipulated in Rule 7(Note 2A), Rule 9 and Rule 11 of GoI, MoF notification, dated 29/08/2008 (RPR 2008) for rounding off at the time of fixation of pay while granting annual increment for the year 2006, 2007 and 2008 and implement the revised instructions issued by MoF, Department of Expenditure vide their OM, dated 29/01/2009 only for annual increments granted on or after 07/2009.


2. In this regard, a reference has been made by one of the controller offices bringing out the anomaly caused due to adoption of different methodologies by different controller offices in rounding off the amount of increment while carrying out refixation of pay due to implementation of MoF, Deptt. of Expenditure OM dated 19/03/2012.

3. To avoid any anomaly, it is reiterated that the instructions laid down under this HQrs circular dated 29/02/2012 are to be followed in-toto while refixation of pay on account of implementation of MoF, Dept. of Expenditure OM dated 19/03/2012 also. Accordingly, the instructions issued by MoF, Dept. of Expenditure vide their OM dated 29/01/2009 to round off any amount of a rupee or more to the next multiple of 10 is to be implemented only for calculation of increment under revise pay structure granted on or after 01/07/2009.

This is for your information, guidance and necessary action please.

Merger of DA with Basic Pay: Demands/Messages from AIRF, NFIR & BSNL Emp Union


Merger of 50% DA with Pay and grant of Interim Relief - NFIR letter
NFIR
National Federation of Indian Railwaymen

No.II/95/Pt. VI
Dated: 20/02/2014
The General Secretaries of
Affiliated Unions of NFIR.

Brother,
Sub: Merger of 50% DA with Pay and grant of Interim Relief.
NFIR has been writing to the Government of India (including Prime Minister, Finance Minister etc) for merger of 50% DA with pay through its letters dated 10/01/2013, 05/08/2013, 27/09/2013. Also in its 27th National Convention held at Visakhapatnam from 10th  to 12th December, 2013, the Federation had passed a resolution demanding merger of 50% DA with Pay and grant of interim relief to employees of Central Government including Railway employees.


NFIR feels happy to convey that the Central Government has conceded the demand of the employees raised by the Federation. 

Union Cabinet is likely to consider the issues to day for taking final decision. Federation will advise decision when taken by the Government. Federation expects that there may be Good News for all Central Government employees very soon.

Yours faithfully,
sd/-
(M.Raghavaiah)
General Secretary
Source: NFIR
AIRF Demanding Merger of 100% Dearness Allowance with Basic Pay through his Press Release:-
PRESS RELEASE 

New Delhi: February 21, 2014 - All India Railwaymen’s Federation(AIRF) has addressed the issue of merger of 100% Dearness Allowance with Basic Pay for all purposes w.e.f. 01.01.2014 to Hon’ble Prime Minister of India and the Finance Minister, Government of India, as Dearness Allowance will cross 100%. Unfortunately, there is no heed to this issue despite agitations at length over the Indian Railways by the AIRF. 
It is also unfortunate that due 10% Dearness Allowance w.e.f. 1st January, 2014 has still not been announced by the Government of India. 
AIRF earnestly requests the Government of India to immediately announce Dearness Allowance w.e.f. 1st January, 2014 all along with merger of 100% Dearness Allowance with Basic Pay. 

For General Secretary 
All India Railwaymen’s Federation
Source: AIRF

Central Government employees may get 50% DA merger - BSNL Employees Union
The Central Government has already formed the 7th Pay Commission for it's employees. The Commission will recommend wage revision for the 50 lakh Central Government employees, as well as pension revision for the 30 lakh pensioners. As per media reports, the Government may merge 50% DA with the basic pay, for which the unions are hard pressing the Government. 

As of now, the Central Government employees are getting 90% DA. They are going to get another 10% DA increase from next month, which will take their total DA to 100% of pay. The normal practice is that DA will be merged with pay, when it reaches 50%. Merger of 50% DA with basic pay was done by the 5th Pay Commission, while the 6th Pay Commission refused to do so. Now, as per media reports, the Government is likely to make a proposal in this regard to the terms of reference for the 7th Pay Commission. 

In respect of the BSNL employees, the BSNLEU has already raised the demand that 50% IDA should be merged with the basic pay. The recently held Rajkot CEC meeting of BSNLEU has passed a resolution, strongly demanding 50% IDA merger.

Soure: http://www.bsnleuchq.com/

Via : http://karnmk.blogspot.in/

Proposal for raising Retirement Age to 62 waits for Cabinet Nod : Hot News

Proposal for raising Retirement Age to 62 waits for Cabinet Nod : Hot News


We have heard it so many times . Every one of us got tired of hearing this rumour again and again. But this time this news may not fade away just as a rumour.

Because the series of events that had happened until now listed below are telling that it will be come true soon.

1. Though there is no any demand from any corner to raise the retirement age of central government employees to 62 years, a parliamentary panel has recommended a proposal to increase the retirement age of government servants to 65 years. The report of the standing committee of Parliament on social justice and empowerment tabled in the Parliament on 7th of this month. Ample justification also was given for their recommendation to increase the retirement age.

2. A reliable source close to a Cabinet Minister told that, the Cabinet Minister himself, while addressing to the Trade Union Wing of his party told ‘the Central Government would announce some important decisions in respect of central government employees within a week or two. This will be good news for all the central government employees.’

3. A close ally of a Central Minister told that, in a meeting held with the leaders of the state unit of his party day before yesterday, the Minister told the Leaders ‘a proposal of increasing retirement age of central government employees to 62 years has been waiting for Cabinet nod. It is expected that the cabinet will clear this proposal within a week. After it gets the Cabinet Nod, the formal announcement will be made by Central Government before the Election announcement.’

The above information clearly indicates that some Good News for central Government Employees are waiting to be announced within a week or two. All the central government employees know what that good news is!

 The expected good news will be either increasing retirement age or Merging 50% DA with Basic Pay or Both!

50 Percent DA Merger or Interim Relief

50% DA MERGE OR INTERIM RELIEF FOR CENTRAL GOVERNMENT EMPLOYEES:
As everyone knows the Central Government has constituted the 7th Pay Commission and named its Chairmen recently. The decision of the government to constitute the 7th CPC has triggered many expectations among the central government employees. Among them was the merger of 50% DA with basic pay as done in the 5th CPC. But the 6th CPC did not recommended anything like that. It is understood that the employees are eagerly awaiting for an economic relief from the soaring prices of essential commodities. There are instances of announcing interim relief (I.R) to the employees apart from DA by a newly constitute pay commission prior to their implementations in the past.


Let us look into some of them
Interim relief prior to Second Pay
1ST PAYCOMMISSION

Details of interim relief in the past
Interim relief of Rs 5.p.m was granted by the 2nd pay commission with effect from the 1st july, 1957 to all employees drawing basic pay not exceeding Rs.250 per month.


Pay range
Dearness pay
Dearness allowance
Total of dearness allowance. Dearness pay and interim relief
Rs
Rs
Rs
Up to Rs  50
20
25
45
Rs.51—— 100
25
30
55
Rs.101—– 150
27.50
32.50
60
Rs.151—– 200
30
35
65
Rs.251—- 300
32.50
37.50
70
Rs.301—- 500
35
35
70

Second Pay Commission
IInd Pay Commission
Interim relief as on 31.12.1972


Pay range
Dearness allowance
Portion treated as dearness pay
Interim relief
Below Rs.85
71
47
29
Rs.110-149
71
47
41
Rs.150-209
98
70
41
Rs.210-399
122
90
41
Rs.400-499
146
110
50

Third Pay Commission 
IIIrd Pay Commission
Interim relief (1.6.1983 and 1.3.1985)

Rates of interim relief from 1.6.1983
The staff side of the national council (joint consultative machinery) had raised a demand relating to the parity of scale of pay of central government employees with public sector pay scales and pending acceptance of this demand, an interim relief to all central government employees was sanctioned at the rates indicated below.


Categories of employees/pay range
Amount of interim relief sanctionedRs.
i
For employees drawing pay below Rs.300 p.m
50 p.m
ii
For employees drawing pay of Rs.300 and above but below Rs 700 p.m
60 p.m
iii
For employees drawing pay of Rs.700 and above but below Rs 1600p.m
70 p.m
iv
For employees drawing pay of Rs.1600 and above but below Rs 2250 p.m
80 p.m
v
For employees drawing pay of Rs.1600 and above but below Rs 2250 p.m
100 p.m

Rates on interim relief from 1.3.1985
The Fourth Pay Commission had recommended an Installment of interim relief at the rate of 10% of the basic pay of the employees subject to minimum of Rs.50 per month to be paid with effect from 1st march 1985.
Fourth Pay Commission
IVth Pay Commission

Interim relief
First installment of interim relief to the central government employees from 16.9.1993

Interim relief of Rs.100/- p.m has been sanctioned to all central government employees w.e.f 16.9.1993.

The amount interim relief will neither be termed as ‘pay’ nor ‘allowance’ nor ‘wages’, accordingly this amount will not counted for any service benefit.

Second instalment of interim relief from 1st April 1995
The Fifth Central Pay commission have recommended a further instalment of interim relief at the rate of of 10% of the basic pay to the employees subject to minimum of Rs .100 per month to be paid with effect from 1st April, 1995.

Third instalment of interim relief from 1st April 1996
The Fifth Central Pay Commission in their interim report have recommended a further instalment of interim relief at the rate of 10% of the basic pay to the employees subject to minimum of Rs .100 per month to paid with effect from 1st April, 1995.

Fifth Pay Commission
Vth Pay Commission

The Fifth CPC, in para 105.11 of their report had recommended that DA should be converted into Dearness Pay each time the CPI increase by 50% over the base index used by the Pay Commission.

Merger of 50% of Dearness Allowance/Dearness Relief with basic pay/pension to Central Government employees/pensioners w.e.f. 01/04/2004.

6th Pay Commission
VIth Pay Commission

The 6th pay commission after its constitution and implementation did not recommended or suggest any kind of interim relief or merging of DA with the basic pay. As of now the DA has touched 100% and its government is unable to satisfy employees. All federation and associations are pressing the government for the merger of 50% DA. They strongly suggest some kind of relief to the employees As the price of essential commodities are in the rise, the government should act now to fullfil the expectation of the employees. The government should come up with merger 50% DA merger or some interim relief to the employees as early as possible.

50%-da-merger-interim-relief
50% DA MERGER OR INTERIM RELIEF - ??


 Source: 
www.govtempdiary.com
[http://www.govtempdiary.com/2014/02/50-da-merge-or-interim-relief-for-central-government-employees/]
 
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