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  • Thursday, 16 August 2018

    7th Pay Commission: No hike in minimum pay, No change in fitment factor and No change in retirement age

    There was a bitter disappointment in store for fifty lakh Central government employees and an equal number of retirees, who have been waiting for a hike in minimum pay and fitment factor beyond the 7th Pay Commission recommendations. There was lot of speculation that PM Narendra Modi may give some good news in his last Independence Day budget in this term as PM. Many believed that looking at good monsoon and positive economic factors, a positive announcement may come months before the general elections. 
    While PM Modi spoke about how Indian economy will be a powerhouse in next three decades, he didn't have any news to offer for the government employees. 
    Minister of State for Finance P. Radhakrishnan earlier in Lok Sabha had said that the Prime Minister's Narendra Modi government is not planning to give any hike in minimum basic salary beyond the recommendations of the seventh pay commission. However, the Haryana government approved pay scale recommendations of teaching and non-teachings staff at government universities, government universities and govt-aided colleges with effect from Jan 1,2016.
    The Maha government also has announced a salary hike under 7th Pay Commission from January 2019 for 17 lakh state employees. . So obviously the Central government employees are also hoping for some positive news. It may be noted that the government at any time can announce such a decision, and it doesn't need to be on a special day. It may come closer in the heels to the election. 
    It is to be noted though that in the hopes of minimum pay hike beyond the recommendations of the 7th CPC might get a blow from the Central Bank itself. Earlier this month, RBI decided to increase the policy repo rate by 25 basis points to 6.5%. The reverse repo rate has been hiked to 6.25%, the RBI announced after its three-day Monetary Policy Committee (MPC) meeting.
    "RBI's Monetary Policy Committee has decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.5% Consequently, the reverse repo rate under the LAF stands adjusted to 6.25% and marginal standing facility rate and Bank Rate to 6.75%," the apex bank said in a statement. 
    RBI in its report mentioned that inflation rates have increased on account of implementation of 7th Pay Commission. The revised HRA structure came into place in July 2017 under the 7th Pay Commission.
    Currently, the Central government employees are getting basic pay according to the fitment formula of 2.57 of the basic pay and if this big step is taken, it will come as a massive news for the Central government employees. Fitment factor is a figure used by 7th CPC with which the basic pay in 6th CPC regime (i.e Pay in Pay band + Grade pay) is multiplied in order to fix basic pay in revised pay structure (i.e 7th CPC). Fitment factor formulated by 7th CPC is 2.57.
    There were talks about Modi raising the retirement age of central government employees. That also didn't come through

    Monday, 13 August 2018

    Increase of fitment factor from 2.57 to 3.68 under 7th CPC - Latest official statement before PM's Independence Day speech

    GOVERNMENT OF INDIA
    MINISTRY OF FINANCE
    RAJYA SABHA
    UNSTARRED QUESTION NO-2273
    ANSWERED ON-07.08.2018
    Increase of fitment factor under 7th CPC
    2273 . Shri Ravi Prakash Verma
    Shri Neeraj Shekhar
    (a) whether Government is contemplating to increase fitment factor from 2.57 to 3.68 under 7th CPC to all pay levels, as demanded by employees associations;
    (b) if so, the details thereof and by when it would be announced; and
    (c) if not, the reasons for betrayal from assurances given by Home Minister and Railway Minister etc. to employees associations in 2016?
    ANSWER
    MINISTER OF STATE IN THE MINISTRY OF FINANCE
    (SHRI P. RADHAKRISHNAN)
    (a) to (c): The Minimum Pay of Rs. 18,000 p.m. and Fitment Factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration.

    Tuesday, 7 August 2018

    Dearness Relief to re-employed Ex-servicemen/pensioners – PCDA Clarification


    Office of the Principal Controller of Defence Accounts (Pension),
    Draupadi Ghat, Allahabad-211014

    Circular No.179 
    Date:12.05.2015
    Sub: Payment of Dearness Relief to re employed pensioner: Clarification thereof.
    As per para l(a) of MOD letter No. 7(1)/95/D(Pen/Services) dated 28.8.2000, entire pension admissible to ex-servicemen who held post below commissioned officers (PBOR) at the time of retirement, is ignored and their pay on re-employment is to be fixed at the minimum of the pay scale of the post in which they are re-employed. Such pensioners will consequently be entitled to dearness relief on their pension.
    Deptt. of Pension and Pensioners Welfare, vide their UO No.41/42/2007/P&PW(G) dt. 03.04.2008, reproduced under this office circular No. 386 dt. 19.06.2008, further clarified that if the pay is fixed at a higher stage because of advance increments and no protection of last pay drawn is given, the pay should be treated as fixed at a minimum only for the purpose of ignoring the entire pension and allowing dearness relief on pension. For availing this benefit the ex-servicemen would have retired at post below commissioned officers Rank (PBOR) before attaining the age of 55 years.
    Now representations from the banks, where number of ex-clarify the elements to be taken into account for assessing the last pay drawn by the ex-servicemen for the purpose of last pay protection.
    The dearness relief on re-employment should be regulated by the Pension Disbursing Agencies on the basis of certificate issued by re-employer, clearly stating whether benefit of last pay protection has been given or not. However, on examination of cases submitted by the banks it has been found that pay scale in banks are still on old pattern, whereas ex-servicemen have been retired with Pay in Pay Band, Grade Pay, MSP, Group Pay etc. In such cases it is clarified that for the purpose of assessing the last pay drawn for last pay protection, the elements to be taken into account should be last pay in pay band i.e. Band Pay plus Grade Pay, last drawn before retirement as envisaged vide MOP, PG & P, DOPT OM NO. 3/19/2009 Estt. Pay II dt. 8th Nov 2010 and no other elements should be taken for this purpose.

    In view of the above, it is advised that all the cases of dearness relief where pay of ex-servicemen has been fixed at a higher stage because of advance increments may be reviewed and regulated accordingly.

    No. AT/Tech/263-XVIII 
    Date 12.05.2015
    (A.D. Mishra)
    Asst.CDA (P)

    Source: www.pcdapension.nic.in
    [http://pcdapension.nic.in/6cpc/Circular-179.pdf]

    Benefit of reservation to Ex-servicemen, who applies for various examinations/vacancies before joining civil posts

    No.36034/1/2014-Estt.(Res.)
    Government of India
    Ministry of Personnel, Pubic Grievances and Pensions
    Department of Personnel and Training
    North Block, New Delhi
    Dated the 14th August, 2014

    OFFICE MEMORANDUM
    Sub: Benefit of reservation to Ex-servicemen, who applies for various examinations/vacancies before joining civil posts/ services in the Government job on civil side.
    In terms of this Department’s Notification No.39016/10/79-Estt(C) dated 15th December, 1979 as amended from time to time and which was last amended vide Notification No. 36034/1/2006-Estt (Res) dated 4th October, 2012, the benefit of reservation to ex-servicemen is available at ten per cent of the vacancies in Group C posts and twenty per cent of the vacancies in Group D posts in all the Central Civil Services and posts. Benefit of reservation is also extended at ten per cent of the vacancies in the posts upto of the level of Assistant Commandant in all para-military forces to be filled by direct recruitment.

    2. Vide this Department’s O.M. No. 36034/27/84-Estt.(SCT) dated 02.05.1985, it was decided that once an ex-serviceman has joined the Government job on civil side after availing of the benefits given to him as an ex-serviceman for his re-employment, his ex-serviceman status for the purpose of re-employment in Government would cease. It was also decided that on his joining the civil employment, he would be deemed to be a civil employee and would accordingly be entitled to only such of the benefits like relaxation of age etc. as admissible to civil employees in the normal course. Vide this Department’s O.M. No. 36034/21/87-Estt.(SCT) dated 07.11.1989, it was clarified that the instructions of 02.05.1985 shall not apply to those ex-servicemen who have been re-employed or are re-employed by private companies/autonomous bodies/ public sector undertakings/ government offices on casual/contract/temporary ad-hoc basis and who can be removed from such service at any time by their employer concerned.
    3. An ex-serviceman at the time of his release or discharge from the armed forces normally applies for more than one vacancy, but in case he/she joins any civil employment due to early declaration of results/selection, he/she is ,not entitled for the benefit of reservation for ex-servicemen for subsequent employment. It has been brought to the notice of this Department that the aforesaid instructions are affecting the chances of ex-servicemen in the case of direct recruitment for subsequent suitable employment.
    4. The matter has, therefore, been considered in consultation with Department of Ex-servicemen, Ministry of Defence. It has now been decided that if an ex-serviceman applies for various vacancies before joining any civil employment, he/she can avail of the benefit of reservation as ex-serviceman for any subsequent employment. However, to avail of this benefit, an ex-serviceman as soon as he/she joins any civil employment, should give self-declaration/undertaking to the concerned employer about the date-wise details of application for various vacancies for which he/she had applied for before joining the initial civil employment. Further, this benefit wou’d be available only in respect of vacancies which are filled on direct recruitment and wherever reservation is applicable to the ex-servicemen.
    5.The above Orders shall take effect from the date of issue of this Office Memorandum.
    6.All the Ministries/Departments are requested to bring the above instructions to the notice of all appointing authorities under their control, for information and compliance.
    sd/-
    (G. Srinivasan)
    Deputy Secretary to the Government of India
    Source: www.persmin.gov.in

    Pay Fixation of Re-Employed Ex-Servicemen vs retired Gp A officer on re-employment: Clarification

    GOVERNMENT OF INDIA
    MINISTRY OF DEFENCE
    OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS (FYS)
    10-A, S.K. BOSE ROAD, KOLKATA: 700001
    No: Pay/Tech-l/069/XVII
    Dated: 02/08/2018 
    Sub: Pay fixation of re-employed Ex-Servicemen 
    Ref: HQ office letter No.AT/II/2455-VI dated 06.07.2018 
    Kindly find, enclosed, HQ office letter quoted under reference on the above subject alongwith its enclosure. 
    It has been inferred in Para 5 of the aforesaid letter that the provisions of Para 8(iii) of DoP&T OM No 3/3/2016-Estt (Pay-II) dated 01.05.2017 and hence Para 3(v) of DoP&T OM No 3/19/2009-Estt (Pay II) dated 05.04.2010, which is analogical to para 8(iii) of OM No 3/3/2016-Estt (Pay-II) dated 01.05.2017, are applicable only for the pay fixation of retired Gr A officers on re-employment and not for the pay fixation of PBORs on re-employment in civil posts. Accordingly, pay fixation of persons who retired as PBOR and got re-employed in civil posts, in the revised structure of 6th CPC is to be regulated as per the provisions laid down in para 4(b)(i), 4(b)(ii) read with para 4(d) of DoP&T OM No 3/19/2009-Estt (Pay II) dated 05.04.2010. 
    Affected cases may be dealt with accordingly. 
    PC of A (Fys) has seen. 
    Sd/- 
    Dy Controller of Accounts(Fys) 

    Wednesday, 1 August 2018

    Confirm 9% DA from July 2018:

    DA from July, 2018 is confirmed to be 9% in 7th CPC & 148% in 6th CPC pay structure with 2% increase in 7th CPC DA & 6% increase in 6th CPC DA after releasing of June, 2018 All India Consumer Price (Industrial Workers) Index Number [CPI(IW)].
    Employees who are in revised 7th CPC pay structure will get 9% Dearness Allowance from the month of January, 2018 and employees who are in pre-revised 6th CPC pay structure will get 148% Dearness Allowance from the month of July, 2018.  The revised Dearness Allowance for the second half of the year may be approved by the Govt in the month of September, 2018 as per previous trend. Monthly Dearness Allowance and Transport Allowance will enhanced from this increase in DA and pensioners will also be benefited by this increase.
    DA from July, 2018 calculated to be 9% in 7th CPC & 148% in 6th CPC pay structure as per  AICPIN of June-2018released.