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Thursday, August 31, 2017


7th Pay Commission  (New Formula)
India Index
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Consumer Price Index for Industrial Workers (CPI-IW) – July, 2017
The All-India CPI-IW for July, 2017 increased by 5 points and pegged at 285 (two hundred and eighty five). In terms of monthly change, it increased by (+) 1.79 per cent between June, 2017 and July, 2017 when compared with the increase of (+) 1.08 per cent for the corresponding months of last year.

Monday, August 28, 2017

7th Pay Commission is the last Paycommission

Many sources confirmed that the 7th Pay Commission would be the last pay commission. It is too tedious a process and employees have to wait for long years for better salaries, higher HRA and good allowances. The latest news on the 7th Pay Commission is that it is likely to be the last.

Union government employees under the aegis of their respective unions are all set to begin an agitation demanding their pay be revised as per the 7th Pay Commission. Employees have expressed their frustration and have realised that the government intentionally delayed the implementation in order to save money. They say that they feel cheated and demoralised. Moreover there is no news on the 8th Pay Commission as well and this has led them to ask how their salaries will be revised or hiked in future.

How will salaries be hiked in future 

The government says that there would be a periodic review in future. In fact the decision to do away with pay commissions will benefit the employees. It would not take ten long years to wait for a pay increase or revision in allowances or HRA. The government would review the salary looking into the data available and also based on the price index.

Waiting for several years not necessary

 Earlier employees had to wait for several years to get good news on their pay hikes. A pay commission had to be set up and then various committees had to formed. The entire process would take several years and employees would be anxious. However this time the government says it wants to do away with most of the red tape in this issue and review the salary annually.

Aykroryd formula to replace pay panels 

The government will take into consideration the Aykroyd formula while reviewing salaries of government employees. This formula would take into consideration the change in prices of the commodities that constitute a common man's basket. The government feels that such a formula would make more sense and employees would be able to cope better with price rise and other fluctuations in the market.

Monday, August 14, 2017


The anomaly has arisen due to the non-grant of 3 per cent of pay towards annual increment following the implementation of the 7th Pay Commission. This was brought to the notice of the Railway Board by the NIFR. An explanation to this effect has also been provided.

Terms of reference

 Clause (c) of terms of reference of the National Anomaly Committee says that the Official Side and Staff Side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the commission itself without the commission assigning any reason, constitutes an anomaly. 

The recommendations of pay panel regarding Annual Increment state that Annual Increment- The rate of annual increment is being retained at 3%. The prevailing rate of increment is considered satisfactory and has been retained. The various stages within a pay level moves upwards at the rate of 3% per annum.

Retaining annual increment at 3 per cent The rate of annual increment is being retained at 3 per cent. The vertical range of each level denotes pay progress within that level. That indicates steps of annual financial progression of 3% within each level. However, contrary to the above principle laid down by pay panel, the actual increment rate in the following pay level of the pay matrix are less than 3% .
 However, contrary to the above principle laid down by pay commission, the actual increment rate in the  pay level of the pay matrix are less than 3% as illustrated in the Pay matrix table. 

The recommendations of commission regarding increment rate is in contravention of the principle or policy enunciated by pay panel hence it constitutes an anomaly. In many stages even though the increment rate shown is 3 per cent, it is rounded off to next below amount causing financial loss to the employees.

 In the 6th Pay Commission, while calculating increment, if the last digit as one or above, it used to be rounded off to next 10. So in this pay matrix, if the amount is 10 and above, it should be rounded off to next 100.

No rectification can lead to frustration 

The existing pay matrix the stages of pay are same in most of the levels such as level 2&3, 6&7, 7&8 etc. In this situation, if an employee is upgraded under MACP from one level to another level, his pay will be almost (Exactly) same as he may have drawn even without receiving the benefit under MACP. 

NFIR therefore requests the Railway Board to take necessary action for rectification of anomaly so as to ensure that the increment at 3 per cent of pay is granted to employees in whose cases where the actual amount is less than 3 per cent under the 7th Pay Commission.


Monday, June 5, 2017

Modi cabinet can decide on allowances this week

Central government employees, who have been waiting for updates on Seventh Pay Commission's recommendations, may finally get to hear from the Narendra Modi government this week.
According to reports, the Union cabinet may take a decision on revised allowance structure at a meeting on Wednesday.

The Empowered Committee of Secretaries (E-CoS) screened the Ashok Lavasa report on allowances at a June 1 meeting and has subsequently forwarded its suggestions to the Modi government.
The Union cabinet will now deliberate on the suggestions of the Empowered Committee of Secretaries at the meeting this week.

  1. If some reports are to be believed, the E-CoS meet discussed House Rent Allowance (HRA) and an increase in basic pay among other concerns of Central government employees. 
  2. The Empowered Committee of Secretaries has reportedly put a cap on HRA rates between 25 per cent and 27 per cent. 
  3. Central government employees have demanded that the HRA rates be left unchanged at 30 per cent, 20 per cent and 10 per cent depending on city category. The Seventh Pay Commission recommended reducing the HRA to 24 per cent, 16 per cent and 8 per cent of the basic pay.
  4. Some reports had hinted at the Ashok Lavasa-led Committee on Allowances taking a favourable view of employees' demand on the HRA. The Ashok Lavasa panel submitted its review report on Seventh Pay Commission to Finance Minister Arun Jaitley on April 27. 
  5. The Union cabinet may choose to look into the Central government employees' concerns regarding the HRA. The allowances once implemented will benefit nearly 50 lakh government employees. 
  6. The Seventh Pay Commission had also suggested axing 53 of the 196 allowances drawn by Central government employees, besides subsuming another 36 smaller allowances into bigger ones. 
  7. The Seventh Pay Commission recommended doing away or merging allowances such as assisting cashier, cycle, condiment, flying squad, haircut, robe, shorthand, soap, spectacle, uniform, vigilance and washing. 
  8. The Union Cabinet recently approved modifications in the Seventh Pay Commission's recommendations on method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions). 
  9. The pay hike of 14.27 per cent under the Seventh Pay Commission is the lowest Central government employees have received in the last 70 years.

Friday, May 19, 2017

Central government employees must wait another week for update on 7th Pay Commission

Central government employees will have to wait for yet another week to receive any update on the revised allowance structure as recommended by the 7th Central Pay Commission. The Empowered Committee of Secretaries (E-CoS) is expected to convene next week to ponder on the recommendations before being presented before the Union Cabinet for their nod.

The 7th pay commission had proposed a total of 196 allowances; a Committee of Allowances was formed under the Finance Secretary Ashok Lavasa to screen them. On April 24 this year, the Committee submitted its report to Finance Minister Arun Jaitley, recommending that 52 allowances suggested by the pay commission be entirely scraped and 36 of them be incorporated with other allowances instead of dealing with them separately.

The recommendations made by the Lavasa-led review committee regarding allowance structure were to be tabled before the E-CoS after consideration by Department of Expenditure. Following which committee of secretaries will table the proposal for implementing the recommendations made by the 7th pay commission, complete with the suggestions from Committee of Allowances, will be presented before the Cabinet for approval.

Cabinet Secretary PK Sinha will preside over the E-CoS meet, as per reports. Officials from Home Affairs, Finance, Health and Family Welfare, Railways, Personnel and Training and Post will also take part in the meeting.

Central government employees have been waiting since for an update on the allowances suggested by the 7th pay commission. It was rumored earlier this week that some union ministers might meet some senior officials to seek updates on the recommendations, inciting expectations in the Centre staff and pensioners.

However, reports of no such meeting were confirmed by either the Finance Ministry or officials who sat in the review committee, adding to the month-long frustration that central government employees waiting for an update since the report landed in the Finance Ministry.

Thursday, March 23, 2017

Committee on Allowances submits report, keeps HRA at 30 per cent

The Committee on Allowances, headed by Finance Secretary Ashok Lavasa, has submitted its report on higher allowances, under the 7th Pay Commission recommendations, to Union Finance Minister Arun Jaitley. The Committee on Allowances has suggested to keep the house rent allowance (HRA) as it was under the 6th Pay Commission–at 30 per cent, 20 per cent, and 10 per cent respectively.
“The Committee on Allowances has already submitted the report on higher allowance to Finance Minister Arun Jaitley. The final decision on allowance will be taken by the end of this month or in the next meeting scheduled on March 23,” said the Zee Business report, quoting sources. Minister of State for Finance Arjun Ram Meghwal, in his written reply to Lok Sabha on March 10 about the 7th Pay Commission, had said the ‘Committee on Allowance’ hasn’t submitted its report.
While the government is yet to approved the report of the Committee on Allowance, a senior Finance Ministry official had said the central government employees will start receiving higher allowance according to 7th Pay Commission recommendations from April 1.
Central government employees have been protesting against the abolition of 51 allowances and subsuming of 37 others out of 196 allowances, recommended by the 7th Pay Commission. Finance Minister Arun Jaitley then formed the Committee on Allowance to look into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations.
Central government employees are currently receiving all allowances except dearness allowance, according to the 6th Pay Commission recommendations. The National Joint Council of Action (NJCA), which has been negotiating with Centre over the 7th Pay Commission report, threatened to launch an agitation if the allowances are not hiked from April 1.

Wednesday, March 8, 2017

GPF Withdrawals – Amendment orders issued

Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-11 0003
Dated the 7th March, 2017.
Subject: Amendment to the provisions of General Provident Fund (Central Service )Rules 1960- liberalization of provisions for withdrawals from the Fund by the subscribers – regarding.
The General Provident Fund (Central Service )Rules came into force in 1960 and Rule 15 of the said rules provide for withdrawals by the subscribers. Some amendments have been made from time to time to address the concerns raised by the subscribers. However, the provisions, largely remain restrictive. There is a felt need to liberalize provisions, raise limits and simplify the procedure.
2. The provisions in the rules have been reviewed and it has now been decided to permit withdrawals from the fund by the subscriber for the following purposes:
(i) Education – This will include primary, secondary and higher education, covering all streams and institutions,
(ii) Obligatory Expenses viz. betrothal, marriage, funerals, or other ceremonies of self or family members and dependants,
(iii) Illness of self, family members or dependants,
(iv) Purchase of consumer durables.
3. It has been decided to permit withdrawal of upto twelve months payor three-fourth of the amount standing at credit, whichever is less. For illness, the withdrawal may be allowed upto 90% of the amount standing at credit of the subscriber. A subscriber may seek withdrawal after completion of ten years of service.
(v) Housing including building or acquiring a suitable-house or a ready-built flat for his-residence,
(vi) Repayment of outstanding housing loan,
(vii) Purchase of house site for building a house,
(viii) Constructing a house on a site acquired,
(ix) Reconstructing or making additions on a house already acquired,
(x) Renovating, additions or alterations of ancestral house.
4. A subscriber may be allowed to withdraw upto ninety percent of the amount standing at credit for the above purposes. It is also decided do away with the present instructions which lay down that subsequent to the sale of house for which GPF withdrawal has been availed, the amount. withdrawn has to be deposited back. GPF withdrawal for housing purpose will no longer be linked with the limits prescribed under HBA rules. A subscriber may be permitted to avail the facility at any time during his service.
(xi) Purchase of motor car/motor cycle/ scooter etc. or repayment of loan already taken for the purpose,
(xii) Extensive repairs /overhauling of motor car,
(xiii)Making deposit to book a motor car/motor cycle/scoter, moped etc.
5. A subscriber may be permitted to withdraw three- fourth of the amount standing at credit or cost of the vehicle, whichever is less for the above purposes. Withdrawal for the above purpose will be permitted after completion of 10 years of service.
6. Presently, withdrawal of upto 90% of balance without assigning reasons is allowed for Government servants who are due for retirement on superannuation within a year. It is proposed that this may be allowed for upto two years before superannuation.
7. In all cases of withdrawal from the fund by the subscriber, the declared Head of Department is competent to sanction withdrawal. No documentary proof will be required to be furnished by the subscriber. A simple declaration form by the subscriber explaining the reasons for withdrawal would be sufficient.
8. As per the GPF(CS) Rule 1960, no time limit has been prescribed for sanction and payment of withdrawal amount. Therefore, it has been decided to prescribe a maximum time limit of fifteen days for sanction and payment of withdrawal from the Fund. In case of emergencies like illness etc., the time limit maybe restricted to seven days.
9. Necessary amendment to the GPF(Central Service)Rules 1960, giving effect to the above provisions will be issued in due course.
10. In so far as persons serving in Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller and Auditor General of India.
11. This issues with approval of Department of Expenditure, vide their ID No. 4(1 )/EV/2017 dated 28.02.2017.
12. Hindi version of this OM will follow
(Sujasha Choudhu)