National Anomaly Committee for disability pension for Defence Forces Personnel

The 1st meeting of the National Anomaly Committee was held on 01.12.2016 on the anomaly of calculation of the disability pension for Defence Forces Personnel as per the recommendations of the 7th CPC.

 The representative of the Armed Forces made a presentation in the meeting demanding that the recommendations of the 7th CPC to grand disability pension on a slab system if implemented will lead to an anomaly between the civilian side and the Defence Forces Personnel because the civilian side will continue to be governed under a percentage based system.

 After studying the presentation, the Staff Side of NC-JCM has suggested that the slab system will be beneficial to the lower Rank personnel and hence both the slab system and percentage system may be accepted by the Govt. on an optional basis, alternatively the slab amount recommended by 7th CPC can be increased to avoid the anomalous situation. 

Secretary (P) informed that the issue would be further studied in consultation with CGDA.

Central govt employees to get higher allowances from January 2017

In a latest development around 7th Pay Commission, the government will start giving higher allowances under the 7th Pay Commission recommendations from January, 2017.

According to sources in Finance Ministry, central government employees will get their higher allowances under 7th Pay Commission recommendations from January next. The cash crunch, following the demonetisation drive of Prime Minister Narendra Modi, compelled central government to keep in abeyance the higher allowances till things normalize.

The government will pay higher allowance, under 7th Pay Commission recommendations, with retrospective effect from August 2016, however central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016. There is official confirmation whether the arrears would be paid too. The development comes days after central government employees unions met Committee on Allowances headed by Finance Secretary Ashok.

The central government employees have been waiting for fatter allowance since July when the government issued the notification for the implementation of the 7th Pay Commission recommendations. The 7th pay commission recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances, which triggered a resentment among central government employees. Union Finance Minister Arun Jaitley then formed ‘Committee on Allowances’ for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance.

“The central government employees unions wanted that House Rent Allowance (HRA) be fixed at range 10, 20 and 30 per cent of the basic linked to the classification of the town of posting when the Pay commission recommended 24 per cent, 16 per cent and 8 per cent respectively of new pay matrix, the union also asked to enhance children education allowance of Rs 3,000 and hostel subsidy of Rs 10,000 with tax exempt.” a sources was quoted as saying by The Sen Times. “The union also demanded inclusion of post-graduate and professional courses in children education allowance and to hike the ‘Fixed Medical Allowance’ to Rs 2,000 with Dearness Allowance Indexation,” they added.

Sources also said that the Finance Ministry may scale down the higher allowances proposal due to ongoing cash chaos in the country. Until acceptance of higher allowances, under 7th Pay Commission, the allowances are now paid according to the 6th Pay Commission recommendations.

No hike in basic pay, allowances likely

It simply means, the National Anomaly Committee or Committee on Allowances won't suggest or approve any changes in the basic pay or allowance against the recommendations of the 7th Pay Commission.

The ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa, is yet to submit its report on fatter allowances recommended by the 7th Pay Commission, however the Finance Ministry sources said the government won’t consider any change in 7th Pay Commission recommendations. Sources confirmed that there will be no changes in basic pay and allowances recommended by the 7th Pay Commission. It simply means, the National Anomaly Committee or Committee on Allowances won’t suggest or approve any changes in the basic pay or allowance against the recommendations of the 7th Pay Commission.

Sources in the Finance Ministry have made it clear that the National Anomaly Committee on behalf of the government won’t consider any hike in basic pay and fatter allowances recommended by the 7th Pay Commission. The latest development contradicts with what Union Finance Minister Arun Jaitley had promised. Those who will hope over these issues will gain nothing but no change on 7th Pay Commission recommendations of pay scales and allowances are very much possible, said sources. 

Finance Minister Arun Jaitley had promised the government would consider the demand of an increase in basic pay and allowances of the central government employees. The government had said it will form a High Level Committee to review the new pa scales. However no such committee has been formed till date. Instead, the government formed a 22-member National Anomaly Committee headed by Secretary, Department of Personnel and Training (DoPT) to look into various pay related anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

Sources said the government has decided to stick to the recommendations of the 7th Pay Commission on basic pay and allowances. They also confirmed that the ‘Committee on Allowances’ won’t suggest any hike and is likely to stick with the recommendations of the 7th Pay Commission. The 7th Pay Commission notification confirmed that central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. The Cabinet also approved the increase in minimum pay Rs 18,000 from existing Rs 7,000. The 7th pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

DA from July 2016 is 2%

                                                 Press Information Bureau

                                                     Government of India

                                                          Cabinet

                                                                                                                 27-October-2016

Cabinet approves release of an installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 01.07.2016

The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has given its approval to release an installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Pensioners w.e.f. 01.07.2016 representing an increase of 2% of the revised Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 5622.10 crore per annum and in the Financial Year 2016-17 for the period of 8 months (i.e. from July 2016 to February 2017), it would be Rs.3748.06 crore. About 50.68 lakh Government employees and 54.24 lakh pensioners will be benefitted.

Source: Press Information Bureau

DA Likely to Come as Diwali Gift

The government is likely to announce the much awaited Dearness Allowance (DA)  for government employees just before Diwali.

The announcement of DA, which comes into effect from July, is already late by around a month. Usually, central government approves the allowance in the first week of September, and the order is released in the third or fourth week of September.

Earlier, official sources and media reports attributed the delay in announcement to extremely tight schedule of Finance Minister Arun Jaitley and his foreign visits.

During the first week of September, the Secretary of the JCM Staff side wrote to the Ministry of Finance with the subject “Future computation of Dearness Allowance and adoption base index figure to Revised Minimum Wage”,and sought granting  of 3% dearness allowance with effect from July 1.

The unions are of the view that after the implementation of 7th Pay Commission, the dearness allowance computation formula and the base year must be changed as it did when the 6th Pay Commission got implemented.

Meeting of revision of pension of pre-2016 pensioners

No.38/37/2016-P&PW(A)
Government of India
Ministry of Personnel, P.G.and Pensions
Department of Pension & Pensioners Welfare

3rd Floor, Lok Nayak Bhavan, Khan Market,
New Delhi, dated the 26th September, 2016

To,
The Secretary,
National Council (Staff Side)
JCM for Central Government Employees,
13C, Firozshah Road,
New Delhi – 110001

Subject: Meeting of the Committee set up to examine feasibility of implementation of recommendation of 7th CPC for revision of pension of pre-2016 pensioners – reg.

Sir/Madam,
I am directed to say that a Committee under the Chairmanship of Secretary (Pension) has been constituted to examine the feasibility of implementation of the first option recommended by the 7th CPC in para 10.1.67 (i) and para 10.2.87 applicable to the Central Civil pensioners and Defence pensioners respectively.

2. A meeting of the Committee with the JCM (Staff Side) for Central Government Employees is proposed to be held on 06.10.2016 at 3.00 p.m. at Conference Hall, 5th Floor, Sardar Patel Bhawan, New Delhi to discuss this issue. It is requested that the same of the member nominated to attend the said meeting may kindly be intimated.

3. This Department looks forward to your participation in the meeting.

sd/-
(Harjit Singh)
Director (Pension Policy)
Harjit.singh59@nic.in
s.chakrabarti75@gov.in

Allowances Committee Meeting on 13th Oct 2016

No.6/8/2016-PIC

Government of India

Ministry of Personnel, PG & Pensions

North Block, New Delhi

Dated 30.09.2016

Office Memorandum

Subject Meeting under the Chairmanship of Secretary (P) with the Secretary Staff Side, NC (JCM) to firm up the view on various allowances pertaining to Department of Personnel & Training on 13/10/2016 at 3.00 PM

The undersigned is directed to refer to Department of Expenditure’s OM No. 11/1/2016-IC dated 12/09/2016 regarding the minutes of the 2nd meeting of committee on Allowances held on 01.09.2016 and to say that a meeting to discuss the various allowances pertaining to DOPT is scheduled to be held under the Chairpersonship of Secretary (P) on 13th October, 2016 at 15.00 Hrs in Room No. 190, North Block, New Delhi

2. It is requested to kindly make it convenient to attend the meeting