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Monday, June 6, 2016

Special Press Release 04 Jun, 2016 from Jantar Mantar


1.  Maj Gen Satbir Singh had one to one meeting with Justice Reddy on 03 Jun, 2016. Meeting was held in very cordial environment and it lasted for one hour instead of scheduled half an hour as Justice Reddy evinced keen interest in all the points put up by Maj Gen Satbir Singh. 
2. Gen Satbir explained in ample measures the four major anomalies viz firstly equalization of pension every year instead of every five years, secondly fixation of pension at top of the bracket instead the average, thirdly implementing it from 01 Apr 2014 instead of 01 Jul, 2014 and fourthly the base year to be top of financial year 2013-2014 instead average of calendar year 2013 thus unfairly denying one increment to soldiers. Changing the very definition of OROP to periodic intervals from passing on any future enhancements in pension to past pensioners thus killing the very soul of OROP was also a topic of keen discussion.
3.  Justice Reddy appeared to be so impressed by the discussion that he promised another meeting after he goes through all the representation received from other sources. He also said that he will be going to all the command HQ and other places where density of ESM is maximum.

4.  Justice Reddy further apprised that he will be asking for an extension of two to three months to do full justice to the subject. His younger brother has also served in the Army therefore we should expect full empathy. Over all Justice Reddy appeared to be down to earth noble soul and JM is fully hopeful and satisfied with the talk.
By the kind courtesy of Report My Signal

Wednesday, June 1, 2016

PIL in Delhi HC for public hearing before OROP commission

The plea came up before a bench of Chief Justice G Rohini and Justice Jayant Nath which ordered that the matter be listed before another bench on Thursday.

A PIL for a public hearing on ex- servicemen’s grievances by the one-member judicial commission on OROP was on Wednesday moved before the Delhi High Court which is likely to hear the matter on Thursday.

The plea, which has also sought directions to the government to extend the duration of the commission headed by Justice (retired) L Narasimha Reddy, came up before a bench of Chief Justice G Rohini and Justice Jayant Nath which ordered that the matter be listed before another bench on Thursday.

The petition, filed by ex-serviceman S P Singh through advocates Vijender Mahndiyan and Satya Rajan Swain, has sought directions to the Ministry of Defence (MoD) and the commission “to give an effective public hearing to those affected or aggrieved by implementation of One Rank One Pension (OROP)”.

According to the petition, as per an MoD letter dated April 13, 2016, “Defence Forces pensioners/family pensioners, Defence Pensioners’ Associations can submit their representation, suggestions/views on the revised pension as notified, to the MoD, through post or by email within 15 days i.e. by April 29, 2016”.

The petitioner has contended that this information was not published in the newspapers and, therefore, people were not informed and added that even the time limit given to forward the representations was “very short”.

He has also contended that asking those aggrieved to forward their grievances to MoD was “unfair and violative of principles of natural justice” as representations would be against the government.

“…the basic lacuna in the whole mechanism is that the representations will go to the One-Member Judicial Commission through the Ministry of Defence; therefore, it is not fair as the representations will be against the Ministry only. Secondly, the affected persons will be hesitant to send their grievances through the ministry,” the petition has said.
It had also said that since mechanism adopted for consultation was written representations alone and no oral representation was allowed, it is “violative of the basic concept of effective hearing”.

Another grievance raised in the plea was that the government has not shared the correspondence address or contact details of the commission despite making several requests.

The petitioner has claimed that “due to non-availability of correspondence address, the aggrieved persons have not been able to share their concerns with the judicial commission, which is expected to finalise its report by mid June 2016”.


- See more at: http://indianexpress.com/article/india/india-news-india/pil-in-delhi-hc-for-public-hearing-before-orop-commission-2828925/#sthash.NHVaKAQt.dpuf

Monday, May 23, 2016

7th CPC: Arrears of salary hike under 7th Pay Commission to be paid in August

The central government is trying to balance out the burden of the 7th pay commission payout on the exchequer. As per reports, though the salaries of the government employees will be paid in July as per the 7th Pay Commission recommendations, the arrears from January 2016, will be disbursed only August onwards.


Implementation of new pay scales recommended by the 7th Pay Commission headed by AK Mathur estimated to put an additional burden of Rs 1.02 lakh crore, or 0.7 percent of GDP, on the exchequer in 2016-17, government has said. 
7th Pay Commission: PMO not insensitive to higher payout for central govt employees 
The recommendations of the Pay Commission will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.
There are reports doing the round that government will payout arrears of only the salary component and not allowances. 
The employees are anticipating at least Rs 24,000 take-home salary per month.
In a meeting with the  BJP's  labour  wing  Bharatiya  Mazdoor Sangh, Jitendra Prasad, Union Minister of State for Personnel, Public Grievances, Pensions, had told the delegation that government would positively look into the demand of the central government employees. "The minister said we will consider the proposal of minimum pay of 24,000”, said Pawan Kumar, Regional Organizing Secretary.

http://zeenews.india.com/business/news/economy/7th-cpc-arrears-of-salary-hike-under-7th-pay-commission-to-be-paid-in-august_1885788.html

Central govt employees say no unilateral decision on salary hikes under 7th Pay Commission acceptable

The central government employees lead by the National Council (Staff Side) Joint Consultative Machinery would like to have more say in the way their monthly salaries and allowances are shaped up by the Empowered Committee of Secretaries.

 

The Union Cabinet had, on January 13, given approval for setting up an empowered committee of Secretaries under the Cabinet Secretary to process the recommendations of the pay panel. The empowered committee has even invited the Joint Consultative Machinery (Staff side) to understand their view point, but the central employees union needs a bilateral negotiation on the matter.  
"Neither did the Government side make any commitment on any demands, nor did they indicate in the minutes that further discussion will be held with the staff side to arrive at a negotiated settlement on each demands. It seems that the Modi Government is moving ahead to issue unilateral orders taking the staff side for a ride", said M Krishnan, Secretary General of the central government employees confederation.
The employees are leaving no stone unturned to extract the highest pay out under the 7th CPC, "The staff side on the other hand has taken a position that if unilateral orders are issued, without taking the staff side into confidence, the NJCA shall go ahead with the indefinite strike from 11th July 2016 as already informed to the government", added Krishnan.

http://zeenews.india.com/business/news/economy/central-govt-employees-say-no-unilateral-decision-on-salary-hikes-under-7th-pay-commission-acceptable_1884690.html

Cabinet Secretary’s panel on 7th CPC to have key meeting on June 11; salary hikes unlikely to come in July

The Empowered Committee of Secretaries (CoS) headed by Cabinet Secretary P K Sinha processing the report of the Seventh Central Pay Commission is expected to meet on June 11 to finally wrap up its report on the remuneration of government employees.


It is reported that the secretaries panel will finally hear out all the stakeholders, including the Central ministries and Departments, and finalise its report, which will be handed over to the government on June 30.
Sources added that even the Prime Minister's Office is keen on a favourable pay hike for the central government employees, so the panel is likely to recommend a minimum salary at Rs 24,000 and the highest salary at Rs 2,70,000.

The 7th pay panel headed by AK Mathur had recommended the minimum salary at Rs 18,000 and maximum salary at Rs 2,50,000.

Sources added that the government is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel. The payout could be substantial with salary hike and arrears adding up to a Rs 1.02 lakh crore burden on government finances.

However, it seems that the government employees will have to wait more for the salary hike. Once the report moves from the table of the empowered group of committee to the cabinet, it is likely to take another month before the notification on pay hike will eventually come.
Even the Finance Ministry is keen that higher salaries reach government employees just before the festive season starting mid-August, as spurt in consumption during the festive period will have a domino effect on the economy.

http://zeenews.india.com/business/news/economy/secy-panel-on-7th-cpc-to-have-key-meeting-on-june-11-salary-hikes-unlikely-to-come-in-july_1887933.html



Issues To Be Considered By The Empowered Committee


7th Pay Commission Report – Areas which require Revision / Modification by Empowered Committee 

After 7th Pay Commission formed in February 2014, staff side JCM consisting of members who are also office bearers of various staff organisations had submitted detailed memorandum to the Commission and suggested the quantum of Minimum Pay, Fitment Formula, Annual Rate of Increment, Date of Effect, Ratio between Minimum Pay and Maximum Pay, Fixation of Pay on Promotion etc., for taking in consideration by 7th Pay Commission in its recommendations.

Many of the demands of the staff side were, however, considered unfavourably by the 7th Pay Commission in its recommendations.

Now, Staff Side have been impressing upon Empowered Committee, the need for rectification / modification / revision of many of retrograde recommendations of 7th Pay Commission.

We provide here a brief of the areas with respect to which Staff Side members will have to demand for revision / modification of the recommendations of 7th Pay Commission.

1. Minimum 7th Pay Commission Pay and Ratio between Minimum and Maximum Pay:

7th Pay Commission has proposed a basic pay of Rs. 18000 as minimum entry pay in Central Government Service (Pay of MTS). However, Staff Side JCM is of the view that as per approved methods such as Dr.Aykroyd Formula, minimum pay in Central Government Service should be Rs. 26,000.

2. Date of Effect and Fitment Formula:

Staff Side JCM had put forth before 7th Pay Commission that uniform fitment formula / multiplication factor of 3.7 to be applied while fixing the basic pay of existing employees.
With regard to Date of effect of 7th Pay Commission pay and allowances, members representing staff side submitted before 7th CPC that Central Government Employees are due for pay revision every ten years and that in order to rectify the delay in implementation of pay commission award in the past, the present pay commission award has to be given effect from 1st January 2014.

Contrary to Staff Side JCM’s suggestions, 7th Pay Commission has fixed the fitment formula / multiplication factor as 2.57. While mere merger of DA with existing pay in pay band and Grade pay would require a multiplication factor of 2.25, 7CPC proposed fitment formula / multiplication factor of 2.57 would result in increase in basic pay to an extent of 14.22% only.

Hence, convincing 7th CPC empowered committee for a higher multiplication factor / fitment formula would be the foremost concern of Staff Side JCM.

As far as date of effect of 7th Pay Commission award is concerned, the commission has not accepted the suggestion of Staff Side. It has observed that since the previous pay commission was given effect from 1st January 2006, the present pay commission award will have to be made effect only from 1st January 2016.

3. Annual Rate of Increment and Date of Increment:

Staff JCM in its memorandum before 7th Pay Commission suggested that since most of the PSUs including the banking industries provide the incremental rate at 5% and over a period of time it raised the salary level of the personnel, rate of annual increment for Central Government Employees will have to be fixed at 5%.

Further, uniform date of increment prescribed by the 6th CPC resulted in many anomalies, Staff Side JCM submitted that two specific dates as increment dates, Viz. 1st January and 1st July will have to be introduced. Those recruited/appointed/promoted during the period between 1st January and 30th June will have their increment date on 1st January and those recruited/appointed/promoted between 1st July and 31st December will have it on 1st July next year.

Also, staff side required that those who retire on 30th June or 31st December are granted one increment on the last day of their service, since they serve the entire one year of service required for an increment as on the date of retirement.

Recommendation of 7th Pay Commission on the rate of increment:

In spite of valid argument of staff side for recommending annual increment rate of 5%, 7th Pay Commission has not made revision in annual increment and Promotional increment which have been recommended at the rate of 3% of basic pay.

4. Scrapping of NPS:

Staff Side JCM is of the view that New Pension system (NPS) has to be scrapped and all the employees who have joined in Govt Service on or after 01.01.2004, are to be brought to defined pension scheme.

However, 7th Pay Commission observed that the NPS will have to be continued; that Govt should frame necessary law / Policy for proper investment of NPS fund in Equity and that a strong grievance redressel will have to be formed to serve NPS employees.

5. Transport Allowance:

With regard to Transport Allowance, Staff Side JCM presented the demand that if at all Transport allowance is meant to defray transport charges then low paid employees ought to have been paid higher transport allowance then higher level officers as they only travel from long distances to reach office. Hence, it was suggested by Staff Side that uniform transport allowance be paid irrespective of level of the cadre
Pay Range
X class cities
other places
Up to Rs.75,000
Rs. 7500 plus DA
Rs. 3750 plus DA

However, 7th Pay Commission has not modified the structure of Transport allowance on the basis of pay level. The existing DA on Transport Allowance has been proposed to be merged. The new rates of Transport Allowance suggested are as follows:
Pay Level
Higher TPTA Cities
(Rs. pm)
Other Places
(Rs. pm)
9 and above
7200+DA
3600+DA
3 to 8
3600+DA
1800+DA
1 and 2
1350+DA
900+DA

 

6. MACP:

It has been demanded by Staff Side JCM that five hierarchical promotions to be granted under MACP. Presently only 3 financial upgradations either in the form of promotion or time bound financial upgradation to next grade pay are being ensured under MACP.

7th Pay Commission has not made any proposal for revising the number of upgradations under MACP which is three at present.

With regard to the benchmark for performance appraisal for MACP as well as for regular promotion, 7th Pay Commission has recommended that in the interest of improving performance level, the same has to be enhanced from ‘Good’ to ‘Very Good.’

7th Pay Commission has also noted that introduction of more stringent criteria such as clearing of departmental examinations or mandatory training before grant of MACP can also be considered by the government.

Withholding Annual Increments of Non-performers:

7th Pay Commission has proposed that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.

The Commission has proposed for withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.

7. House Building Advance:

Staff Side JCM had demanded for increasing the advance to 50 times of the Salary and fixing the rate of interest not more than 5%.

As per 7th Pay Commission’s recommendations, 34 times of Basic Pay OR Rs.25 lakh OR anticipated price of house, whichever is least can be availed as House Building Advance.

The requirement of minimum 10 years of continuous service to avail of HBA has been proposed to be reduced to 5 years.

If both spouses are government servants, 7CPC has proposed that HBA should be admissible to both separately. Existing employees who have already taken Home Loans from banks and other financial institutions would be allowed to migrate to this scheme, as recommended by 7CPC.

8. Children Education Allowance:

Suggestions of Staff Side:
Presently the allowance is admissible for two children, for studying in a recognised school up to XII standard. The maximum ceiling is stipulated at Rs.18000/- since this allowance had been hiked by 50% because of the DA component in salary having been crossed 100% on 1.1.2014. It is suggested that doubling of this allowance and increasing the same by 50 % whenever the DA crosses over by 50%.

Further, it has been suggested that the CEA scheme may be extended to cover children studying for Graduate/Post Graduate and Professional courses.

7th Pay Commission’s recommendations on Children Education Allowance:
CEA (Rs. pm)
1500×1.5 = 2250
Whenever DA increases by 50%, CEA shall increase by 25%
Hostel Subsidy (Rs. pm)
4500 x 1.5 = 6750 (ceiling)
Whenever DA increases by 50%, Hostel
Subsidy shall increase by 25%

7th Pay Commission has not accepted the Staff Side’s demand that CEA to be applicable for children beyond class 12.

9. HRA:

House Rent Allowance suggested by Staff Side JCM

X classified cities
60%
Y classified towns
40%
Z classified/unclassified places
20%

House Rent Allowance recommended by 7th Pay Commission 

Population of Cities/Towns
Class of Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 lakh and above
X
24
50–5 lakh
Y
16
Below 5 lakh
Z
8

HRA when DA crosses 50% 

Population of 
Cities/Towns
Class of Cities/Towns
HRA rates as % of Basic Pay 
(including MSP and NPA)
50 lakh and above
X
27
50–5 lakh
Y
18
Below 5 lakh
Z
9

HRA when crosses 100% 
Population of Cities/Towns
Class of Cities/Towns
HRA rates as % of Basic Pay 
(including MSP and NPA)
50 lakh and above
X
30
50–5 lakh
Y
20
Below 5 lakh
Z
10

10. LTC:


Staff Side JCM demanded the following as far as Leave Travel Concession applicable to Central Government Employees is concerned
1. Permission for air journey for all categories of employees to and from NE Region.
2. Permission for personnel posted in NE Region for a journey within NE Region.
3. To increase the periodicity of the LTC once in two years.
4. Explore the possibility of allowing an employer to undertake tour outside India once in a service career in lieu of the LTC.
7th Pay Commission Report on LTC:
It could be found that suggestions of Staff Side JCM such as increasing the frequency of All India LTC, permission for air travel for all categories of employees in respect of NE Region etc., were not discussed in the report of 7th Pay Commission.
The proposal to split hometown LTC has been considered and it is recommended that splitting of hometown LTC should be allowed in case of employees posted in North East, Ladakh and Island territories of Andaman, Nicobar and Lakshadweep.
Also, it is obsered by 7th Pay Commission that LTC to foreign countries is not in the ambit of this Commission.

11. Gratuity:


Suggestions of Staff Side JCM:
Staff Side JCM suggested that in respect of gratuity payable to employees ceiling of 16.5 times and the quantum limit of Rs. 10 lakhs should also be removed. It was pointed out that in the banking industry there is no such ceiling of 16.5 months salary but the retiring bank employees are getting at the rate of ½ a month salary for every year of service even over and above 33 years of service. Hence, in respect of Central Government Employees also for a service span exceeding 33 years, the gratuity should be higher and the above ceiling be withdrawn.
7th Pay Commission’s recommendations on Gratuity:

It has been recommended by 7th Pay Commission that ceiling of gratuity is to be raised from the existing Rs.10 lakh to Rs. 20 lakh from 01.01.2016. Further, as per Commission’s recommendations, Gratuity is to be partially indexed to Dearness Allowance. It is proposed that the ceiling on gratuity may increase by 25% whenever DA rises by 50 percent.