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Friday, January 20, 2017

CGHS contribution enhanced w.e.f 01.01.2017


Consequent to revision in the pay structure of Central Govt. employees, CGHS contribution is going to be enhanced from 01.01.2017 at the following rate :
Sr. No.
Level in the Pay Matrix
Contribution per month (Rs)
1
Level 1 to 5
250
2
Level 6
450
3
Level: 7 to 11
650
4
Level 12 and above
1000


Click here to view the O.M. for change in other entitlements.

Tuesday, January 17, 2017

Good news for employees of Autonomous bodies

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 burden 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 employees
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."

Thursday, January 12, 2017

Central Employees Fear Delay In Getting Higher Allowances

Central government employees have raised concerns over announcing the higher allowances under the 7th Pay Commission award, saying this may further delay in announcement which will ultimately result into their financial health.
Arun Jaitley
Finance Minister Arun Jaitley may announce the higher allowances, most probably after ending the model code of conduct on March 8.
The employees have been promised for full 7th Pay Commission award along-with higher allowances in fiscal 2016-17 as Rs 70,000 crore has been provisioned in the Union Budget 2016-17 for implementation of the Pay Commission full award for government employees, a top finance ministry official said.
The Budget document states that “the 7th Pay Commission full recommendations is to be implemented during 2016-17 fiscal.”
The report of the 7th Pay Commission was presented to Finance Minister Arun Jaitley on November 19 last year with a recommendation for 14.27 per cent increase in basic pay. The overall increase in salary, allowances and pensions is 23.55%. The increase in allowances will be higher by 63% while pensions will rise 24%.
The government has given higher basic pay with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but referred hike in allowances other than dearness allowance to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination as The 7th pay commission had recommended for abolishing 51 allowances and subsuming 37 others out of 196 allowances.
It compelled the the central government employees to get the allowances according to the 6th Pay Commission recommendations until issuing of higher allowances notification.
The ‘Committee on Allowances’ has finalized the report on the allowances in October, however the government gave extension the committee till February 22, 2017 to submit its report.
Prime Minister Narendra Modi’s surprise decision on November 8 to scrap high-value banknotes had upset preparations for higher allowances under the 7th Pay Commission recommendations because of the the cash crunch compels the government to extend its announcement.
Central government employees have expressed frustration at this, and are worried that the higher allowances might not be implemented in time.
In the meantime, the model code of conduct, which is currently in place for five states assemblies’ poll that bars the central government from announcing the higher allowances.
We hope, the Finance Minister Arun Jaitley may announce the higher allowances, most probably after ending the model code of conduct on March 8, which will cover 48 lakh central government employees and 52 lakh pensioners.