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Thursday, November 16, 2017

All Updates on NAC Meeting And Minimum Pay Hike

The central government employees and pensioners have been waiting for a hike in minimum pay beyond the recommendation of the 7th Pay Commission or 7th CPC since July 2016. While the government has given hints about raising minimum pay beyond the recommendation of the 7th Pay Commission, there is little clarity on release of higher minimum pay. The National Anomaly Committee (NAC), which was formed to resolve all matters related to the implementation of the 7th Pay Commission‘s recommendations, is yet to submit its report on higher minimum pay. 
The NAS was supposed to hold a meeting in October on a hike in minimum pay beyond the recommendation of the 7th Pay Commission. However, the got postponed after the Election Commission announced dates for Assembly polls in Himachal Pradesh and Gujarat. The committee is likely to submit its report on a hike in minimum pay by December 15, said a Sen Times report. The report will be further examined by the Empowered Committee of Secretaries headed by Cabinet Secretary P K Sinha and the Department of Expenditure.

The government has reportedly asked the NAC to go ahead for a hike in basic pay beyond the recommendation of the 7th Pay Commission with fitment factor 3.00 times. The NAC may suggest hiking minimum pay to Rs 21,000 from Rs 18,000, which was recommended by the 7th Pay Commission and approved by the Cabinet. The central government employees, however, have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times from 2.57 times.While the NAC meeting might be held in December, the higher minimum pay would be released from April 2018. Several reports earlier suggested that the government would raise minimum pay beyond the recommendation of the 7th Pay Commission from January. However, the sources in the Finance Ministry said the higher minimum pay will come into effect by April next year at the latest. The NAC report on minimum pay hike would be available by that day (January) and its implementation would be done afterwards in due process, they said.
The government had approved a hike in salary and allowances as per the recommendations of the 7th Pay Commission in June 2016 and July 2017 respectively. The 7th Pay Commission had recommended a 14.27 percent hike in basic pay — the lowest in 70 years and raised minimum pay from Rs 7,000 to Rs 18,000 month.

Wednesday, November 1, 2017

Journey to Headquarters on LTC in respect of dependent family members of the Government servant

No. 31011/5/2015-Estt.A-IV
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
Establishment A-IV Desk
North Block New Delhi.
Dated October 31, 2017
Subject: Journey to Headquarters on LTC in respect of dependent family members of the Government servant – Clarification reg.
The undersigned is directed to refer to this Department’s O.M. No. 31011/14/86-Estt.(A-1V) dated 08.05.1987, which inter alia provides that the Govt. servant and the members of the family may claim LTC independently, however, reimbursement in such cases will be restricted to the actual distance travelled by the family or the distance between the headquarters/place of posting of the Government servant and the place visited/hometown, whichever is less.
2. Restriction of reimbursement to the distance from the Headquarter/place of posting creates an anomalous situation where the Government servant seeks to avail of LTC in respect of members of the family to the Headquarters/place of posting either from the Home town of the Government servant or from anywhere else. For illustration, a dependent child of a Govt. servant (posted in Delhi) staying and pursuing studies in Mumbai may visit a Government servant at his Headquarters/place of posting (i.e. Delhi) on LTC, however, reimbursement in such case shall be admissible for distance between the Headquarters and place of visit (which in this case is Headquarters itself), which shall be NIL in this case.
3. To resolve the issue, the matter has been considered by this Department in consultation with Joint Consultative Machinery – Staff side and Department of Expenditure. It is clarified that full reimbursement as per the entitlement of the Government servant shall be allowed for journey(s) performed on LTC by the family members from any place in India to Headquarters/place of posting of the Government servant and back. When such journey is performed from the Home Town, the LTC shall be counted against ‘Home Town’ LTC and in case the journey is from any other place in India, then it shall be counted against ‘Any place in India’ LTC.
4. The provisions of this OM (para 3) will have prospective effect.
5. Hindi version will follow.
(Surya Narayan Jha)
Under Secretary to the Government of India

Monday, October 30, 2017

Transport Allowance (TPTA)

Transport Allowance (TPTA) : Report of the Committee on Allowances

Transport Allowance (TPTA) (Para 8.15.53)

Existing Provisions: Granted to cover the expenditure involved in commuting between place of residence and place of duty. The existing rates are as under:
Officers drawing GP 10000 and higher, who are entitled to the use of official car, have the option to avail of the existing facility or to draw TPTA @ ₹7000 + DA.
Differently abled employees are granted TPTA at double rates subject to a minimum of ₹1000+DA.
Recommendations of 7th CPC: Transport Allowance is already fully DA indexed. Therefore, following rates of Transport Allowance are recommended:
Officers in Pay Level 14 and higher, who are entitled to the use of official car, will have the option to avail themselves of the existing facility or to draw the TPTA at the rate of ₹15,750+DA pm.
Differently abled employees will continue to be paid at double rate, subject to a minimum of ₹2,250 plus DA.
I. National Council (Staff Side), JCM:
i. There should be only two levels for Transport Allowance, as under:
Level 9 and above
₹7500+DA (Higher TPTA Cities)
₹3750 + DA (Other Places
Below Level 9
₹3750+DA (Higher TPTA Cities)
₹1875 + DA (Other Places)
ii. Income Tax exemption, which was available for Transport Allowance, may be reintroduced.
II. Ministry of Health and Family Welfare: SAG Doctors should be paid Transport Allowance at the rates admissible to Joint Secretary in lieu of Staff Car.
Analysis and Recommendations of the Committee: The Committee notes that the Transport Allowance is fully indexed to Dearness Allowance and the rates have accordingly been revised by the 7th CPC. As the demands do not relate to any changes recommended by the 7th CPC, the recommendations of the 7th CPC on Transport Allowance may be accepted without any change.
When this allowance was introduced by 5th CPC, the entire amount was exempted from Income Tax. However, the Committee is not making any recommendations relating to raising of Income Tax ceiling on Transport Allowance as it is not within the purview of the Committee. The matter may be taken up separately with Department of Revenue.
Authority: www.doe.gov.in

Thursday, August 31, 2017


7th Pay Commission  (New Formula)
India Index
% of




Consumer Price Index for Industrial Workers (CPI-IW) – September, 2017

The All-India CPI-IW for September, 2017 remained stationary at 285 (two hundred and eighty five). On 1-month percentage change, it remained static between August, 2017 and September, 2017 when compared with the decrease of (-) 0.36 per cent for the corresponding months of last year.

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.