02/07/2016
Creation of new Postal Circle named "Telengana Postal Circle" subsequent to the formation of Telengana StateCLICK HERE to view DOP ORDER .
The unions have been demanding Rs.26,000, higher than the Rs.18,000 approved by the cabinet on Wednesday on the Seventh Pay Commission’s report. The government said it was more than doubling minimum pay from Rs.7,000 after accepting the recommendations of the commission, which would put an extra Rs.1.02 trillion in the hands of 10 million government employees and pensioners.
“Three top ministers called us and we met at Rajnath Singh’s house for two hours till 11pm last night. We have been assured that the minimum wage issue is going to be referred to one of two committees that the government is setting up to rectify any anomalies in the pay commission recommendations’ implementation,” said Shiva Gopal Mishra, general secretary of the National Joint Council of Action (NJCA), a confederation of several government staff unions.
The council claims a membership of 3.3 million, including workers of Indian Railways, the country’s largest employer.
Mishra said Jaitley accepted their concern. “He said the government will try to rectify some of our demands, including minimum wage,” the NJCA general secretary said.
Union leaders claimed that the pay commission’s recommendation and the government’s announcement raising minimum pay from Rs.7,000 to Rs.18,000 had glossed over the fine print.
“Now, base pay plus dearness allowance (DA) makes the minimum wage Rs.15,700. They have increased it to Rs.18,000,” said K.K.N. Kutty, national president of the Confederation of Central Government Employees and Workers.
“When you are doing away with DA in the new system, the hike cannot be just Rs.2,000,” said C. Srikumar, general secretary of the All India Defence Employees Federation, a union of civilian workers in factories and establishments under the ministry of defence.
Mishra said the home minister assured them that “their interaction with us has the blessings of PM Narendra Modi”.
“On minimum wage, we are for a negotiated settlement and it seems there is some consideration at the highest level,” he added.
An office-bearer at an employees’ union said the government’s offer had posed a dilemma to union leaders, noting that it wasn’t a written assurance, “without which it will be tough to accept that the government is indeed serious in reworking the minimum wage”.
The offer had ended up dividing the unions on whether to proceed with the strike, this person said on condition of anonymity. “And we could not reach a conclusion on Friday on our next course of action,” he said, adding that the railway workers’ union was hesitant about going on strike.
Mishra, who is also the general secretary of All India Railwaymen’s Federation, sounded a conciliatory note.
“We are fighting for the welfare of our own workers...a strike is an option if government does not listen to us. There seems to be a political willingness to solve what we are demanding and that’s what was indicated last night,” Mishra told reporters in New Delhi.
On Friday, NJCA wrote to all unions that “government has proposed to refer the issue of minimum wage and fitment formula (for calculation of salary) to a committee for reconsideration. The NJCA will await communication in this regard from the government”.
It said that it will meet on 6 July again to decide on the proposed strike.
What is interesting is that increasing the minimum pay will change the salary fitment calculations. If the minimum wage is hiked from Rs.18,000 to even Rs.20,000, the fitment rate will be higher than the 2.57 times approved by the government based on the pay commission recommendations.
“If the 2.57 fitment formula is tinkered with, then salary and pension in general for all segments of employees will go up, putting further stress on the exchequer. So the government has to walk a fine balance and a lot of homework is required,” said a government official, who declined to be named.
The acceptance of the pay commission recommendations is a potential boost to the consumer economy.
A further hike could lift consumption further, but it will be tough on government finances, the official said.
Rating agency India Ratings and Research Pvt. Ltd said the gross impact of pay hike on the economy is likely to be Rs.94,775 crore.
“The central government will receive income tax on this payout and collect excise duty on consumption, after sharing the increase in income tax and excise duty with states. Thus the net impact on the central government finances is estimated to be Rs.80,641 crore,” said D.K. Pant, chief economist of India Ratings and Research.
Creation of new Postal Circle named "Telengana Postal Circle" subsequent to the formation of Telengana StateCLICK HERE to view DOP ORDER .
Department of Posts scouts for payments bank CEO, COO
The Department of Posts has written to chiefs of several public sector banks asking them to nominate officials to fill the posts of chief executive officer and chief operating officer at the department’s payments bank, which is to be unveiled soon.
“We have written to select public sector banks like Punjab National Bank, Canara Bank, Bank of Baroda, Bank of India (and) Union Bank to recommend their board-level officers or senior executives who may be interested in managing our payments bank as CEO on one-year deputation basis,” Department of Posts Secretary, S.K. Sinha, said.
The Secretary clarified that a similar request was not sent to State Bank of India to avoid conflict of interest as country’s largest lender has partnered with Reliance Industries, which has been granted a payments bank licence by the Reserve Bank of India.
March deadline
Since the government has set a March 2017 deadline for launching the payments bank's operations, the department wants to bring in top management quickly. The formal process of appointing a full-time CEO and COO will be initiated simultaneously, for securing approvals from competent authorities, including the Appointments Committee of the Cabinet.
Mr Sinha said: “We expect the board of IPPB to be in place within 30 to 45 days. If we get the name of the CEO, then we can have the board running.”
The India Posts Payment Bank (IPPB) will have 650 branches across the country.
Minimum wage for central govt employees may be hiked
New Delhi: Under pressure from the unions, the government has indicated that it may increase the minimum monthly pay of central government employees beyond theRs.18,000 suggested by the Seventh Pay Commission, seeking to defuse a strike threat.The assurance has divided several government unions on whether to go ahead with the indefinite strike starting 11 July.
Three cabinet ministers—finance minister Arun Jaitley, home minister Rajnath Singh and railway minister Suresh Prabhu—met representatives of several government staff unions late on Thursday for almost two hours and assured them that their demand would be looked into.The unions have been demanding Rs.26,000, higher than the Rs.18,000 approved by the cabinet on Wednesday on the Seventh Pay Commission’s report. The government said it was more than doubling minimum pay from Rs.7,000 after accepting the recommendations of the commission, which would put an extra Rs.1.02 trillion in the hands of 10 million government employees and pensioners.
“Three top ministers called us and we met at Rajnath Singh’s house for two hours till 11pm last night. We have been assured that the minimum wage issue is going to be referred to one of two committees that the government is setting up to rectify any anomalies in the pay commission recommendations’ implementation,” said Shiva Gopal Mishra, general secretary of the National Joint Council of Action (NJCA), a confederation of several government staff unions.
The council claims a membership of 3.3 million, including workers of Indian Railways, the country’s largest employer.
Mishra said Jaitley accepted their concern. “He said the government will try to rectify some of our demands, including minimum wage,” the NJCA general secretary said.
Union leaders claimed that the pay commission’s recommendation and the government’s announcement raising minimum pay from Rs.7,000 to Rs.18,000 had glossed over the fine print.
“Now, base pay plus dearness allowance (DA) makes the minimum wage Rs.15,700. They have increased it to Rs.18,000,” said K.K.N. Kutty, national president of the Confederation of Central Government Employees and Workers.
“When you are doing away with DA in the new system, the hike cannot be just Rs.2,000,” said C. Srikumar, general secretary of the All India Defence Employees Federation, a union of civilian workers in factories and establishments under the ministry of defence.
Mishra said the home minister assured them that “their interaction with us has the blessings of PM Narendra Modi”.
“On minimum wage, we are for a negotiated settlement and it seems there is some consideration at the highest level,” he added.
An office-bearer at an employees’ union said the government’s offer had posed a dilemma to union leaders, noting that it wasn’t a written assurance, “without which it will be tough to accept that the government is indeed serious in reworking the minimum wage”.
The offer had ended up dividing the unions on whether to proceed with the strike, this person said on condition of anonymity. “And we could not reach a conclusion on Friday on our next course of action,” he said, adding that the railway workers’ union was hesitant about going on strike.
Mishra, who is also the general secretary of All India Railwaymen’s Federation, sounded a conciliatory note.
“We are fighting for the welfare of our own workers...a strike is an option if government does not listen to us. There seems to be a political willingness to solve what we are demanding and that’s what was indicated last night,” Mishra told reporters in New Delhi.
On Friday, NJCA wrote to all unions that “government has proposed to refer the issue of minimum wage and fitment formula (for calculation of salary) to a committee for reconsideration. The NJCA will await communication in this regard from the government”.
It said that it will meet on 6 July again to decide on the proposed strike.
What is interesting is that increasing the minimum pay will change the salary fitment calculations. If the minimum wage is hiked from Rs.18,000 to even Rs.20,000, the fitment rate will be higher than the 2.57 times approved by the government based on the pay commission recommendations.
“If the 2.57 fitment formula is tinkered with, then salary and pension in general for all segments of employees will go up, putting further stress on the exchequer. So the government has to walk a fine balance and a lot of homework is required,” said a government official, who declined to be named.
The acceptance of the pay commission recommendations is a potential boost to the consumer economy.
A further hike could lift consumption further, but it will be tough on government finances, the official said.
Rating agency India Ratings and Research Pvt. Ltd said the gross impact of pay hike on the economy is likely to be Rs.94,775 crore.
“The central government will receive income tax on this payout and collect excise duty on consumption, after sharing the increase in income tax and excise duty with states. Thus the net impact on the central government finances is estimated to be Rs.80,641 crore,” said D.K. Pant, chief economist of India Ratings and Research.
Government decides not to withhold appointment letters pending the verification of character and antecedents of the successful candidates
The Government has decided that the issue of appointment letters need not be withheld pending the verification of character and antecedents of the successful candidates. The appointing authorities will issue provisional appointment letters after obtaining the attestation form and self declaration from the candidate.
In the appointment letter, it will be clearly mentioned that in case character and antecedents of the candidate is found not verified or any false information is given by the candidate in his/her self-declaration, the provisional appointment will be cancelled forthwith and other criminal/legal action will also be taken, as a consequence. This decision aims to achieve the Governments vision of Minimum Government and Maximum Governance and deliver citizen-centric good governance.
As per existing provisions, the appointing authorities undertake an exercise of verification of character and antecedents of the successful candidates before issuing the formal appointment order. The Government has decided that now the verification of character and antecedents will be carried out, but the issue of appointment letters need not be withheld pending such verification.
The necessary instructions in this regard have been issued to all Ministries/Departments and also brought to the notice of the State Governments/Administrators of Union Territories
As per existing provisions, the appointing authorities undertake an exercise of verification of character and antecedents of the successful candidates before issuing the formal appointment order. The Government has decided that now the verification of character and antecedents will be carried out, but the issue of appointment letters need not be withheld pending such verification.
The necessary instructions in this regard have been issued to all Ministries/Departments and also brought to the notice of the State Governments/Administrators of Union Territories
01/07/2016
7th Pay Commission minimum wage and Fitment formula – Govt to form a Committee for reconsideration of these two factors after NJCA met panel of ministers – Staff Side sought modification of minimum pay and Fitment Formula
National Joint Council of Action
4, State Entry Road New Delhi – 110055
No. NJCA/2016
Dated: July 1, 2016
Dear Comrade!
We are to inform you that the NJCA had a discussion with the Government of India yesterday, i.e.30.06.2016 over certain demands contained in our Charter of Demands. In the meeting, following ministers were present: –
Shri Rajnath Singh, Hon’ble Home Minster
Shri Arun Jaitley, Hon’ble Finance Minister
Shri Suresh Prabhakar Prabhu, Hon’ble Railway Minister
Shri Manoj Sinha, Hon’ble MoS Railway
On behalf of the NJCA, the following participated in the discussion: –
Shri Shiva Gopal Mishra, Convener NJCA (AIRF)
Shri M. Raghavaiah, Chairman NJCA (NFIR)
Shri K. K. N, Kutty Member NJCA (Confederation)
Shri C. Srikumar, Member NJCA (AIDEF)
The government has proposed to refer the issue of Minimum Wage and Fitment Formula to a Committee for reconsideration.
The NJCA will await communication in the regard from the government.
The NJCA will again meet on 6th July at 11:00 hrs., in JCM Office, 13-C, Feorzshah Road, New Delhi, for taking appropriate decision.
With Fraternal Greetings!
7th Pay Commission minimum wage and Fitment formula – Govt to form a Committee for reconsideration of these two factors after NJCA met panel of ministers – Staff Side sought modification of minimum pay and Fitment Formula
National Joint Council of Action
4, State Entry Road New Delhi – 110055
No. NJCA/2016
Dated: July 1, 2016
Dear Comrade!
We are to inform you that the NJCA had a discussion with the Government of India yesterday, i.e.30.06.2016 over certain demands contained in our Charter of Demands. In the meeting, following ministers were present: –
Shri Rajnath Singh, Hon’ble Home Minster
Shri Arun Jaitley, Hon’ble Finance Minister
Shri Suresh Prabhakar Prabhu, Hon’ble Railway Minister
Shri Manoj Sinha, Hon’ble MoS Railway
On behalf of the NJCA, the following participated in the discussion: –
Shri Shiva Gopal Mishra, Convener NJCA (AIRF)
Shri M. Raghavaiah, Chairman NJCA (NFIR)
Shri K. K. N, Kutty Member NJCA (Confederation)
Shri C. Srikumar, Member NJCA (AIDEF)
The government has proposed to refer the issue of Minimum Wage and Fitment Formula to a Committee for reconsideration.
The NJCA will await communication in the regard from the government.
The NJCA will again meet on 6th July at 11:00 hrs., in JCM Office, 13-C, Feorzshah Road, New Delhi, for taking appropriate decision.
With Fraternal Greetings!
01/07/2016
Don’t believe in rumors & media news. NJCA confirmed Strike schedule (JULY-11/07/2016) as stated earlier after press conference today. NJCA will meet on 06/07/2016 at JCM office.. Circle/Divisional /Branch Secretaries are requested to conduct the gate meetings daily from today
1)7th CPC Recommendation on CGEGIS is not accepted by Govt and the old scheme and rates continues:The 7th Pay Commission has recommended the following rates for Central government Employees Group Insurance Scheme (CGEGIS) . The subscription amount has been increased considerably to increase the Insurance amount .
Level of Employee Monthly Deduction (₹) Insurance Amount (₹)
10 and above 5000 50,00,000
6 to 9 2500 25,00,000
1 to 5 1500 15,00,000
This has been objected by NCJCM in its memorandum. The demanded to reduce the monthly deduction as it is much higher than the Premium rates available for Term life Insurance in Open Market. The Central Government accepted this demand and rejected this recommendation and asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.
” The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.
2)Cabinet accepts both two options for fixation of 7th CPC Revised Pension
7th CPC Recommended following Two options for fixation of Revised Pension:1. Pay Scale on Retirement and Number of Increment Earned in the scale of Retiring Grade will be taken for fixation of PensionIn this method Pension will be fixed in the Pay Matrix on the basis of the Pay Band and Grade Pay at which they retired
2. Using Multiplication Factor 2.57Existing Basic Pension to be multiplied by 2.57
When the NJCA met the Cabinet Secretary, they observed that Govt is not going to accept second option due to non-availability of Records to verify their Pay Level at the retiring stage. Objections were raised by Pensioners Association to this move and they requested the government to retain both two options to avoid disparity between Pre 2016 and Post 2016 Pensioners.The Central government in principle accepted the two options recommended for fixation of Revised Pension. But to address the issues anticipated when implementation in process, govt decided to constitute a committee to examine the feasibility of using First Option for fixation of Pension. It said, if found feasible, it will be implemented. The Committee has been given four months’ time to submit its report.The govt decision on Pension related issues is given below“The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.”
3)Cabinet decided to retain LTC advance and Medical Advance in 7th Pay Commission:7th Pay commission in its report, recommended that all the interest free advances should be abolishedWe have already raised concerns about abolishing the Advances for Medical Treatment and LTC
Since these advances are reimbursable in nature, the government has now considered to restore four advances out of 12 Interest free advances which 7th CPC recommended to abolish.After Cabinet Approval Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained.
4)The Central Government decision on the Advances is given below:“The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished”Percentage of HRA in 7th pay commission after cabinet approvalThe Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalising the percentage based allowances. The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent
5)The cabinet committee reviewed the recommendations on Allowances and they are not able to give a decision over the Allowances. Hence the Union Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. And it is said that the Committee will complete its work in a time bound manner and submit its reports within a period of 4 months.
In the press release issued by government said the following” The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.”The above press release concluded with a statement of ” Till a final decision, all existing Allowances will continue to be paid at the existing rates”Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively. Whether these existing rates of HRA will be paid based on revised pay or pre revised pay..? It needs to be clarified when implementation of 7th pay commission is in process.”
Don’t believe in rumors & media news. NJCA confirmed Strike schedule (JULY-11/07/2016) as stated earlier after press conference today. NJCA will meet on 06/07/2016 at JCM office.. Circle/Divisional /Branch Secretaries are requested to conduct the gate meetings daily from today
1)7th CPC Recommendation on CGEGIS is not accepted by Govt and the old scheme and rates continues:The 7th Pay Commission has recommended the following rates for Central government Employees Group Insurance Scheme (CGEGIS) . The subscription amount has been increased considerably to increase the Insurance amount .
Level of Employee Monthly Deduction (₹) Insurance Amount (₹)
10 and above 5000 50,00,000
6 to 9 2500 25,00,000
1 to 5 1500 15,00,000
This has been objected by NCJCM in its memorandum. The demanded to reduce the monthly deduction as it is much higher than the Premium rates available for Term life Insurance in Open Market. The Central Government accepted this demand and rejected this recommendation and asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.
” The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.
2)Cabinet accepts both two options for fixation of 7th CPC Revised Pension
7th CPC Recommended following Two options for fixation of Revised Pension:1. Pay Scale on Retirement and Number of Increment Earned in the scale of Retiring Grade will be taken for fixation of PensionIn this method Pension will be fixed in the Pay Matrix on the basis of the Pay Band and Grade Pay at which they retired
2. Using Multiplication Factor 2.57Existing Basic Pension to be multiplied by 2.57
When the NJCA met the Cabinet Secretary, they observed that Govt is not going to accept second option due to non-availability of Records to verify their Pay Level at the retiring stage. Objections were raised by Pensioners Association to this move and they requested the government to retain both two options to avoid disparity between Pre 2016 and Post 2016 Pensioners.The Central government in principle accepted the two options recommended for fixation of Revised Pension. But to address the issues anticipated when implementation in process, govt decided to constitute a committee to examine the feasibility of using First Option for fixation of Pension. It said, if found feasible, it will be implemented. The Committee has been given four months’ time to submit its report.The govt decision on Pension related issues is given below“The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.”
3)Cabinet decided to retain LTC advance and Medical Advance in 7th Pay Commission:7th Pay commission in its report, recommended that all the interest free advances should be abolishedWe have already raised concerns about abolishing the Advances for Medical Treatment and LTC
Since these advances are reimbursable in nature, the government has now considered to restore four advances out of 12 Interest free advances which 7th CPC recommended to abolish.After Cabinet Approval Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained.
4)The Central Government decision on the Advances is given below:“The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished”Percentage of HRA in 7th pay commission after cabinet approvalThe Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalising the percentage based allowances. The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent
5)The cabinet committee reviewed the recommendations on Allowances and they are not able to give a decision over the Allowances. Hence the Union Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. And it is said that the Committee will complete its work in a time bound manner and submit its reports within a period of 4 months.
In the press release issued by government said the following” The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.”The above press release concluded with a statement of ” Till a final decision, all existing Allowances will continue to be paid at the existing rates”Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively. Whether these existing rates of HRA will be paid based on revised pay or pre revised pay..? It needs to be clarified when implementation of 7th pay commission is in process.”
कोई टिप्पणी नहीं:
एक टिप्पणी भेजें