No indication of percentile increase in HRA, transport allowances

According to sources, the committee examining the suggestions of the 7th Pay Commission on allowances, is unlikely to make changes of percentage in house rent allowance (HRA).

The committee, headed by Finance Secretary Ashok Lavasa to examine the suggestions of the 7th Pay Commission on allowances, is working to make the new allowances structure keeping in mind the inflation. According to sources, the committee examining the suggestions of the 7th Pay Commission on allowances, is unlikely to make changes of percentage in house rent allowance (HRA). The committee will consider the high cost of housing rent in cities and charges of medical and other facilities before submitting its report on suggestions of the 7th Pay Commission on allowances structure.

According to the sources in the Finance Ministry, issues like inflation, the government’s financial position and new salary structure of central government employees would be examined before submitting the report on new allowances. The committee won’t make any change in the existing house rent allowance (HRA) percentage. (ALSO READ: 7th Pay Commission: NJCA to pitch for 3.68 fitment factor to revise minimum pay in meeting with National Anomaly Committee)

It means, central government employees living in ‘X’ class cities like Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, will get 30 percent of their pay matrix as house rent allowance (HRA), no increasing from the existing 30 percent, reported the Sen Times. Employees posted at ‘Y’ class cities covers near about 90 stations, will receive 20 percent of pay matrix, at the existing percentage. The HRA in ‘Z’ class cities will be 10 per cent.

The 7th Pay Commission had proposed the rate of House Rent Allowance (HRA) at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The committee will not propose to increase the rate of transport allowances of central government employees and it will be as per the recommendations of the 7th Pay Commission, said sources.

The government formed a committee headed by Finance Secretary Ashok Lavasa and Secretaries of Home Affairs, Defence, Health and Family Welfare among others as its members on July 22 for examination of the recommendations of 7th Pay Commission on allowances. The 7th Pay Commission headed by Justice A K Mathur had recommended abolition of 51 allowances and subsuming 37 others after examining 196 allowances. The committee is likely to submit its report by September and from October government employees are likely to get their revised allowances.

The government in July issued the notification for the implementation of the 7th Pay Commission recommendations. The 7th Pay Commission notification confirmed that central government employees 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The Cabinet also approved the increase in minimum pay Rs 18,000 from existing Rs 7,000. Many government employees are unhappy as the requested minimum wage was increased to Rs 18,000 and the demand was made of Rs 26,000. More than 47 lakh Central Government employees and 53 lakh pensioners have been eagerly waiting for implementation of 7th Pay Commission.

Gratuity to all NPS Employees

No. 7/5/2012-P&PW(F)/B
Ministry of Personnel, Public (Grievances and Pensions
Department of Pension and Pensioners Welfare

Lok Nayak Bhawan, Khan Market,
New Delhi-110 003, Dated the 26th August, 2016

OFFICE MEMORANDUM

Subject: Extension of benefit of Retirement Gratuity and Death Gratuity to the Central Government Employees covered by new Defined Contribution Pension System (National Pension System) – regarding.

The undersigned is directed to say that the pension of the Government servants appointed on or after 1.1.2004 is regulated by the new Defined Contribution Pension System (known as National Pension System), notified by the Ministry of Finance (Department of Economic Affairs) vide their O.M. No. 5/7/2003-ECB & PR dated 22.12.2003. Orders were issued for payment of gratuity on provisional basis in respect of employees covered under National Pension System on their retirement from Government service on invalidation or death in service, vide this Department’s O.M. No. 38/41/2006-P&PW(A) dated 5.5.2009.

2. The issue of grant of gratuity in respect of government employees covered by the National Pension System has been under consideration of the Government. It has been decided that the government employees covered by National Pension System shall be eligible for benefit of ‘Retirement gratuity and Death gratuity’ on the same terms and conditions, as are applicable to employees covered by Central Civil Service (Pension) Rulke,1972.

3. These orders issue with the concurrence of Ministry of Finance, Department of Expenditure, vide their .D. Note No. 1(4)/EV/2006-II dated 29.07.2016.

4. In their application to the persons belonging to the India Audit and Accounts Department, these orders issue after consultation with Comptroller and Auditor General of India.

5. These orders will be applicable to those Central Civil Government Employees who joined Government Service on or after 1.1.2004 and are covered by National Pension System and will take effect from the same date i.e. 1.1.2004.

Sd/-
(Harjit Singh)
Director (Pension Policy)

NEITHER TRANSPORT NOR TPT ALLOWANCE TO OFFICER WITH NFU GRADE PAY

Clarification on admissibility of Transport Allowance in the eases where the officers are drawing Grade Pay of Rs.10,000/- in PB-4

No. 21(2)/2016-E.II(B)
Government of India Ministry of Finance
Department of Expenditure

New Delhi, 19th August, 2016.

OFFICE MEMORANDUM

Subject:- Clarification on admissibility of Transport Allowance in the eases where the officers are drawing Grade Pay of Rs.10,000/- in PB-4 – regarding.

Reference is invited to this Department’s Office Memorandum No.21(2)/2008-E.11(B) dated 29.08.2008. Para `3′ of the O.M. stipulates that Officers drawing Grade Pay of Rs.10,000/- & above and those in the HAG+ Scale, who are entitled to the use of official car in terms of Department of Expenditure (DoE) O.M. No. 20(5)/E.II(A)/93 dated 28.01.1994, shall be given the option to avail themselves of the existing facility or to draw the Transport Allowance at the rate of Rs.7,000/- p.m. plus Dearness Allowance thereon.

2. Several references have been received in this Department seeking clarification on the admissibility of Transport Allowance to officers drawing Grade Pay Rs.10,000/- under Dynamic ACP Scheme or NFU Scheme. A few cases have also been filed in the Courts in this regard. Hon’ble Central Administrative Tribunal (CAT), Principal Bench, New Delhi, in Order dated 13.05.2014 in U.A. No.4062/2013 filed by Shri Radhacharan Shakiya & Others V/s Union of India & Others, held that the Applicants were not entitled to draw Transport Allowance @ Rs.7,000/- pm. plus DA thereon. The said order of the Tribunal has also been upheld by Hon’ble High Court of Delhi in their Order dated 03.09.2014 passed in Writ Petition (Civil) No. 3445/2014, filed by Shri Radhacharan Shakiya & Others,

3. Accordingly, it is clarified that the officers, who are not entitled for the use of official car for commuting between residence to office and back, in terms of DoE’s OM 20(5)/E-II(A)193 dated 28.01.1994, are not eligible to opt for drawal of Transport Allowance @ Rs.7000/- p.m. + DA thereon, in terms of DoE O.M. No.21(2)/2008-E.II(B) dated 29.08.2008, even though they are drawing Grade Pay of Rs.10,000/- in PB-4 under Dynamic ACP Scheme or under the scheme of Non-Functional Upgradation (NFU).

sd/-
(Nirmala Dev)
Deputy Secretary to the Govt. of India

Source : finmin.nic.in

7th Pay Commission Allowances From October

The new allowances for the central government employees is likely to be implemented from October 1, a senior Finance Ministry official told The Sen Times today on condition of anonymity

“Definitely, the new allowances on recommendations of 7th Pay Commission will be made effective soon. However, if its implementation is delayed it will be given effect from October 1,” the official told our reporter.

The finance ministry official said the Finance Secretary committee will submit its report by September end.

The official said alongside main allowances, the Finance Secretary committee will recommend various reforms in allowances hence it will take some time to implement those after scrutinising.

The Union Cabinet cleared the recommendations of 7th Pay Commission in respect of the hike in basic pay and pension on June 29 but decision on its suggestions relating to allowances has been referred to a Committee headed by Finance Secretary.

Accordingly, notification and resolution for the implementation of the 7th Pay Commission recommendations in respect of the hike in basic pay were issued on July 25.

The pay fixation and arrears  related  Office Memorandum No.1-5/2016-IC and Corrigendum dated July 29 and dated August 1 respectively were issued for paying arrears in one go in August salary.

According to Union Cabinet decision, a Committee headed by Finance Secretary Ashok Lavasa and Secretaries of Home Affairs, Defence, Health and Family Welfare among others as its members was constituted on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance.

The pay commission headed by Justice A K Mathur had recommended abolition of 51 allowances and subsuming 37 others after examining 196 allowances.

The scrapping of the allowances was opposed by the central government employees’ Unions and so it has been referred to a Committee of Secretaries.

Finance Minister Arun Jaitley said in Rajya Sabha in this month, “These measures are radical in nature, even the employees’ unions have given their suggestions in the matter and therefore the committee has been formed to look into allowances. Whatever the committee decides, it will go to the Cabinet.”

The first meeting of the Finance Secretary Committee on allowances already took place on August 4.

The once in a decade pay hike has seen burden on exchequer rise from Rs 17,000 crore in the 5th Pay Commission to Rs 40,000 crore in the 6th and Rs 1,02,100 crore in the 7th Pay Commission, Jaitley  earlier said.

“The Union government needs funds. The Pay Commission has put a burden of Rs 1.03 lakh crore,” Jaitley said in the Parliament in this month.

The hike in the salary component as recommended by the 7th Pay Commission was accepted with retrospective effect from January 1, 2016. The arrears will be paid to the Central government employees and pensioners on August 31, Jaitley added.

It is noted that no arrears for allowances will be paid, as per usual practice, the allowances would be paid from the date of implementation.

The recommendations of the 7th Pay Commission cover 48 lakh Central government employees and 52 lakh pensioners.

Two 'Anomaly Committee' for implementation of 7th pay commission

The centre on Wednesday announced setting up of an 'Anomaly Committee' to settle issues arising out of the implementation of the Seventh Pay Commission's recommendations from August 1.

This announcement came following concerns by unions of employees over the delay in setting up the high level committee, assured by the Group of Ministers to review the minimum wage and multiplication factor as well as anomalies which have crept in following implementation of the new Pay Commission recommendations.

A notification issued by the Department of Personnel said here that Anomaly Committee would consist of representatives of the official side and the staff side. It also said that the Committee would be guided by specified conditions.

It said that definition of Anomaly will include where the official side and the staff side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the Commission assigning any reason.

As per the notification there will be two levels of Anomaly Committees — National and Departmental, consisting of representatives of the Official Side and the Staff Side of the National Council and the Departmental Council respectively.

The National Anomaly Committee will deal with anomalies common to two or more Departments and in respect of common categories of employees. The Departmental Anomaly Committee will deal with anomalies exclusive to the Department concerned and having no repercussions on the employees of another Ministry/Department.

The Anomaly Committee shall receive anomalies through Secretary, the staff side of respective Council up to six months from the date of its constitution and it will finally dispose of all the anomalies within a period of one year from the date of its constitution. Any recommendations of the Anomaly Committee to resolve the anomaly shall be subject to the approval of the Government.

Cases where there is a dispute about the definition of "anomaly" and those where there is a disagreement between the staff side and the official side on the anomaly will be referred to and "arbitrator" to be appointed out of a panel of names proposed by the two sides. However, this arbitration will not be a part of the JCM Scheme.

On August 12 the National Joint Council of Action (NJCA) in a communication to all its constituents had said that it has asked the Cabinet Secretary to hold a Special discussion with on the issue.

It had said its representatives have conveyed strong `resentment’ over decision to allow the first option given to the pensioners be implemented subject to feasibility.

“We have reiterated that while we are open to discussion as to the methodology of verification of the claims of individual petitions in respect of Option No.l, we would not be able to countenance of the non implementation of the recommendation of the 7th CPC on the flimsy ground of non availability of records”.

It also had asked the Constituents Organisations to forward the various anomalies on the implementation of the Seventh CPC notification within in 15 days.

No New Pay Commission In Future

The government is mulling not to form new Pay Commission for increasing salaries and allowances of central government employees and and pensioners in future.

There would be an officer who would submit a report of inflation to the Finance Minister Arun Jaitley every three years.
There would be an officer who would submit a report of inflation to the Finance Minister Arun Jaitley every three years.

No new commission may be formed in future for increasing salaries of central government employees, a senior Finance Ministry official told The Sen Times on condition of anonymity.

“The government is going to take a policy decision in this regard,” official told our reporters after issuing the 7th Pay Commission notification.

Pay Commissions makes much impact on the fiscal deficit, since pay commission awards come once in 10 years, the two to three years subsequent to each award tend to be fiscally stressful for the central government. States also suffered major blows to their finances for implementation of pay commission report, he added.

Presenting an idea about an alternative arrangement, he said that the 7th Pay Commission Chairman Justice A K Mathur had earlier told The Financial Express in an interview, “The government should review the salary of central government employees every year looking into the data available to it and based on the price index.”

The 7th Pay Commission recommended that the pay matrix may be reviewed periodically without waiting for the long period of ten years. It can be reviewed and revised on the basis of the Aykroyd formula which takes into consideration the changes prices of the commodities that constitute a common man’s basket, which the Labour Bureau at Shimla reviews periodically.

The Pay Commission also suggested that this should be made the basis for revision of that pay matrix periodically without waiting for another Pay Commission.

So, it will not be necessary to form a new pay Commission after every 10 years for central government employees and pensioners and whether any change is required regarding pay and allowances would be made considering inflation.

Accordingly, the central government is to follow this proposal of the Pay Commission and to discontinue the practice of appointing pay commissions in future to suggest salary structure and other perks for all central government employees and pensioners, the official gave his views.

The official said there would be an officer who would submit a report of inflation to the Finance Minister Arun Jaitley every three years.

He added some changes regarding pay and allowance would be made considering inflation.

Special committee of allowances constituted on 22 July headed by the finance secretary as chairman

The Union cabinet will take a decision on the suggestions of a special committee, which has been set up to look into the provision of allowances under the Seventh Central Pay Commission recommendations, finance minister Arun Jaitley said on Tuesday.

Replying to a question on the pay commission in Rajya Sabha, the minister said the government has decided that the recommendations on allowances for central government employees, other than dearness allowance, will be examined by a committee headed by the finance secretary as chairman, and secretaries of home affairs, defence, health and family welfare among others as its members.

The committee, which was constituted on 22 July, has been asked to submit its report within four months. Its first meeting took place on 4 August. “As far as allowances are concerned, 51 have been abolished while 37 have been subsumed. As the measures are radical in nature, even the employees’ unions have given their suggestions in the matter and therefore a special committee has been formed to look into it. Whatever the committee decides, it will go to the cabinet,” Jaitley said.

The matters relating to pay and pension as decided by the government have been implemented with effect from 1 January this year.

7th CPC : Gazette Notification issued for pension and few other benefits

7th CPC : Gazette Notification issued for pensioners

Govt. issued the resolution adopted and accepted for revision of pension for pensioners.
The office order for payment of enhanced pension and arrears payment is likely to be issued shortly.
Click here for the resolution

7th Pay Commission Revision of pension of pre-2016 Pensioners/Family Pensioners

Implementation 7th Pay Commission Revision of pension of pre-2016 Pensioners/Family Pensioners

Dated the 4th August, 2016.

                                                    OFFICE MEMORANDUM

Sub: Implementation of Government's decisions on the recommendations of the Seventh Central Pay Commission – Revision of pension of pre-2016 pensioners/family pensioners etc.

The undersigned is directed to say that in pursuance of Government's decision on the recommendations of Seventh Central Pay Commission, sanction of the President is hereby accorded to the regulation, with effect from 01.01.2016, of pension/ family pension of all the pre-2016 pensioners/ family pensioners in the manner indicated in the succeeding paragraphs. Separate orders are being issued in respect of employees who retired/died on or after 01.01.2016.

2.1 These orders shall apply to all pensioners/family pensioners who were drawing pension/family pension before 1.1.2016 under the Central Civil Services (Pension) Rules, 1972, Central Civil Services (Extraordinary Pension) Rules and the corresponding rules applicable to Railway pensioners and pensioners of All India Services, including officers of the Indian Civil Service retired from service on or after 1.1.1973. A pensioner/family pensioner who became entitled to pension/family pension with effect from 01.01.2016 consequent on retirement/death of Government servant on 31.12.2015, would also be covered by these orders.

2.2 Separate orders will be issued by the Ministry of Defence in regard to Armed Forces pensioners/family pensioners.

2.3 These orders also do not apply to retired High Court and Supreme Court Judges and other Constitutional/Statutory Authorities whose pension etc. is governed by separate rules/orders.

3. In these orders:

a. 'Existing pensioner' or 'Existing Family pensioner' means a pensioner/family pensioner to whom these orders are applicable in terms of para 2.1 above.

b. 'Existing pension' or 'Existing Family Pension means the basic pension (inclusive of commuted portion, if any) or basic family pension, as had been fixed at the time of implementation of 6th CPC recommendations, which an existing pensioner or family pensioner was entitled to.

4.1 For existing pensioners, who have retired before 01.01.2016, the revised pension/family pension with effect from 01.01.2016 shall be determined by multiplying the pension/family pension, as had been fixed at the time of implementation of 6th Central Pay Commission (CPC) recommendations, by 2.57. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.

 Illustration:
Case I : Pensioner 'A' retired at last pay drawn of Rs. 79,000 on 31st May, 2015 under the 6th CPC regime in the scale of Rs. 67000-79000:

Amount in Rs.
1.	Basic Pension fixed in 6tH CPC	39,500
2.	Revised Pension fixed under 7tnCPC (using a multiple of 2.57)	1,01,515

Case II: Pensioner 'B' retired at last pay drawn of Rs. 4,000 on 31st January, 1989 under the 4th CPC regime in the pay scale of Rs. 3000-100-3500-125-4500:

Amount in Rs.
1.	Basic Pension fixed in 4th CPC	1,940
2.	Basic Pension as revised in 6th CPC	12,600
3.	Revised Pension fixed under 7th CPC (using a multiple of 2.57)	32,382

4.2 For this purpose, the existing pension/family pension will be the basic pension/family pension only without the element of additional pension available to the old pensioners/family pensioners of the age of 80 years and above. The additional pension/family pension payable to the old pensioners/family pensioners will be worked out in accordance with para 4.5 of this O.M.

4.3 Since the consolidated pension will be inclusive of commuted portion of pension, if any, the commuted portion will be deducted from the said amount while making monthly disbursements.

4.4 The minimum pension with effect from 01.01.2016 will be Rs. 9000/- per month (excluding the element of additional pension to old pensioners). The upper ceiling on pension / family pension will be 50% and 30% respectively of the highest pay in the Government (The highest pay in the Government is Rs. 2,50,000 with effect from 01.01.2016).

4.5 The quantum of pension/family pension available to the old pensioners/ family pensioners shall continue to be as follows:-

Age of Pensioner/family Pensioner	Additional quantum of Pension
From 80 years to less than 85 years	20% of revised basic pension/ family pension
From 85 years to less than 90 years	30% of revised basic pension / family pension
From 90 years to less than 95 years	40% of revised basic pension / family pension
From 95 years to less than 100 years	50% of revised basic pension / family pension
100 years or more	100% of revised basic pension / family pension

The amount of additional pension will be shown distinctly in the pension payment order. For example, in case where a pensioner is more than 80 years of age and his/her revised pension in terms para 4.1 above is Rs.10,000 pm, the pension will be shown as (i).Basic pension=Rs.10,000 and (ii) Additional pension = Rs.2,000 pm. The pension on his/her attaining the age of 85 years will be shown as (i). Basic Pension = Rs.10,000 and (ii) additional pension = Rs.3,000 pm. Dearness relief will be admissible on the additional pension available to the old pensioners also.

4.6 The revised pension/family pension arrived at as per paragraph 4.1 includes dearness relief sanctioned from 1.1.2016.

5. Where the revised pension/family pension in terms of paragraph 4.1 above works out to an amount less than Rs. 9000/-, the same shall be stepped up to Rs. 9000/-. This will be regarded as pension/family pension with effect from 1.1.2016.

6. The existing instructions regarding regulation of dearness relief to employed/re- employed pensioners/family pensioners, as contained in Department of Pension & Pensioners Welfare O.M. No. 45/73/97-P&PW(G) dated 02.07.1999, as amended from time to time, shall continue to apply.

7. The cases of Central Government employees who have been permanently absorbed in public sector undertakings/autonomous bodies will be regulated as follows:-

(a) PENSION : Where the Government servants on permanent absorption in public sector undertakings/autonomous bodies continue to draw pension separately from the Government, the pension of such absorbees will be updated in terms of these orders. In cases where the Government servants have drawn one time lump sum terminal benefits equal to 100% of their pensions and have become entitled to the restoration of one-third commuted portion of pension as per the instructions issued by this Department from time to time, their cases will not be covered by these orders. Orders for regulating pension of such pensioners will be issued separately.

(b) FAMILY PENSION : In cases where, on permanent absorption in public sector undertakings/autonomous bodies, the terms of absorption and/or the rules permit grant of family pension under the CCS (Pension) Rules, 1972 or the corresponding rules applicable to Railway employees/members of All India Services, the family pension being drawn by family pensioners will be updated in accordance with these orders.

8. The matter regarding Constant Attendant Allowance admissible to the existing pensioners shall be examined by a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Posts, Health & Family Welfare, Personnel & Training and Chairman, Railway Board as Members. Till a final decision is taken based on the recommendations of the Committee, Constant Attendant Allowance shall be paid at existing rates.

9. All Pension Disbursing Authorities including Public Sector Banks handling disbursement of pension to the Central Government pensioners are hereby authorised to pay pension/family pension to existing pensioners/family pensioners at the revised rates in terms of para 4.1 and 5 above without any further authorisation from the concerned Accounts Officers/Head of Office etc. Wherever the age of pensioner/ family pensioner is available on the pension payment order, the additional pension/ family pension in terms of para 4.4. above may also be paid by the pension disbursing authorities immediately without any further authorisation from the concerned Account Officer/ Head of Office, etc. A suitable entry regarding the revised pension shall be recorded by the pension Disbursing Authorities in both halves of the Pension Payment Order.

10 The pension/family pension as worked out in accordance with provisions of Para 4.1. and 5 above shall be treated as 'Basic Pension' with effect from 01.01.2016. The revised pension/family pension includes dearness relief sanctioned from 1.1.2016 and shall qualify for grant of Dearness Relief sanctioned thereafter.

11. Further orders in regard to revision of pension based on the recommendations of the Committee to be constituted in terms of the Government's decision on Item No. 11 of this Department's Resolution No. 38/37/2016-P&PW (A) dated 4th August, 2016, will be issued in due course.

12. After a decision as in para 11 above is taken by the Government and orders are issued in this regard, the Head of the Department of the Ministry, Department, Office, etc. from which the government servant had retired or where he was working prior to his demise will revise the pension/family pension of all pensioners/ family pensioners with effect from 1st January 2016 in accordance with those orders and issue revised Pension Payment Order (PPOs) accordingly.

13. It is considered desirable that the benefit of these orders should reach the pensioners as expeditiously as possible. To achieve this objective it is desired that all Pension Disbursing Authorities should ensure that the revised pension and the arrears due to the pensioners in terms of para 4.1. and para 5 above is paid to the pensioners or credited to their account by 31st August, 2016 or before positively.

14. In their application to the persons belonging to Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller and Auditor General of India.

15. Ministry of Agriculture etc. are requested to bring the contents of these Orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and subordinate Offices under them on a top priority basis. All pension disbursing offices are also advised to prominently display these orders on their notice boards for the benefit of pensioners.

Order for Pay Fixation and arrears

The arrears as accruing on account of revised pay consequent upon fixation of pay under CCS(RP) Rules 2016 with effect from 01.01.2016 shall be paid in cash in one installment alongwith the payment of salary for the month of August 2016, after making adjustment on account of GPF and NPS, as applicable."
Click here for the implementation order