7th Pay Commission: Pay hikes set to affect from new financial year

 

New Delhi: The lower-level employees working with Central government will get a boost in their pay starting in new financial year, as pay hikes take effect.

The government should not have broken FM Arun Jaitley ’s promise with respect to Parliament.

The government was committed to raising the minimum pay from Rs 18,000 per month, with the increase of fitment factor, under Finance Minister Arun Jaitley’s promise for hiking salaries of lower-level employees beyond the 7th Pay Commission recommendations in Rajya Sabha on July 19, 2016.
There is a proposal under consideration for raising pay of lower-level central government employees upto the pay matrix level 5 from current fitment factor 2.57 to 3.00, but the central government employees unions are demanding for hike fitment factor 3.68 and minimum pay above the current Rs 18,000 to Rs 26,000, a senior government official said on condition of anonymity.
Earlier, The 7th pay panel recommended minimum pay Rs 18,000 per month while the maximum pay from Rs 2.5 lakh, with a fitment factor of 2.57 times of basic pay of 6th pay commission uniformly for replacing the 6th pay commission pay scales, which was got cabinet nod on June 29, 2016.
A union leader said, it would help lower-level employees pay for necessities, where rising costs have long outpaced pay increases for the central government employees.
“The political parties have created a system where the government pays employees less but need them to spend more,” said the leader. “That causes middle-class families to fall down the economic ladder. It’s the reason our middle class is shrinking and the reason we are facing the largest gap between upper- and lower-income in India since Independence.”
The government formed the National Anomaly Committee (NAC) in September 2016 to resolve pay anomalies, following the promise of the Finance Minister Jaitley. The minimum pay Rs 21,000 with fitment factor 3.00 was likely to be given nod by the NAC in last year.
In the meantime, the Department of Personnel and Training (DoPT) issued a letter on October 30, last year stating that the demand for increase in minimum Pay and fitment formula do not appear to be treated as anomaly, therefore, these do not come under the purview of NAC, which hurt the central government employees, and debate now continues on whether government should respect FM Jaitley’s promise of increasing pay for employees, the government official said.
He added, the government should not have broken FM Jaitley’s promise with respect to Parliament, it now falls the Finance Ministry, to make good on FM’s pay hike pledge, so the ministry is mulling to increase the pay of employees, who get salaries from pay matrix level 1 to 5, from April, ignoring the DoPT letter on October 30.
http://www.tkbsen.in/2018/02/7th-pay 

PCDA Circular No.596 – 7th Central Pay Commission – Revision of Disability/ War Injury pension for Pre-01.01.2016 Defence Forces pensioners

PCDA Circular No.596 – 7th Central Pay Commission – Revision of Disability/ War Injury pension for Pre-01.01.2016 Defence Forces pensioners

 Circular No. 596

Dated: 09th February, 2018

To,

1. The Chief Accountant, RBI, Deptt. Of Govt. Bank Accounts, Central office C-7, Second Floor, Bandre- Kurla Complex, P B No. 8143, Bandre East Mumbai- 400051
2. All CMDs, Public Sector Banks including IDBI Bank
3. Nodal Officers, ICICl/ HDFC/ AXIS/ IDBI Banks
4. Managers, All CPPCs
5. Military and Air Attache, Indian Embassy, Kathmandu, Nepal
6. The PCDA (WC), Chandigarh
7. The CDA (PD), Meerut
8. The CDA, Chennai
9. The Director of Treasuries, All States
10. The Pay and Accounts Officer, Delhi Administration, RK Puram and Tis Hazari, New Delhi
11. The Pay and Accounts Office, Govt of Maharashtra, Mumbai
12. The Post Master Kathua (J&K)
13. The Post Master Camp Bell Bay
14. The Pr. Pay and Accounts Officer, Andaman and Nicobar Administration, Port Blair

Subject: Implementation of Government decision on the recommendations of the 7th Central Pay Commission (CPC)- Revision of Disability/ War Injury pension for Pre-01.01.2016 Defence Forces pensioners reg.

Reference: This office Circular No. 570 dated 31.10.2016, Circular No. 582 dated 05.09.2017 and Circular No. 585 dated 21.09.2017.

(Available on this office website www.pcdapension.nic.in)

Copy of GOI, MOD letter No. 17(01)/2017(01)/D(Pen/Policy) dated 23rd January, 2018 on the above subject, which is self-explanatory, is forwarded herewith for further necessary action at your end.

2. In terms of Para-2 of GOI, MOD letter No. 17(01)/2017(01)/D(Pension/ Policy) dated 04th September,2017, Disability Element of Disability Pension to Armed Forces Pensioners has to be revised by multiplying the existing rate of Disability Element as had been drawn on 31.12.2015 by factor of 2.57 to arrive at revised rate of Disability Element as on 01.01.2016. Further, in terms of Para-5.2 & 5.3 of GOI, MOD letter No. 17(01)/2017(02)/D(Pension/Policy) dated 05th September’ 2017, Disability Pensionary awards has to be revised on notional pay fixation method and benefits of broad banding will be given to discharge cases also as in invalided out cases and these will be done by issuing Corrigendum Pension Payment Order (PPO).

3. Now, consequent upon the issue of GOI, MOD letter dated 23rd January, 2018, the cases where Armed Forces Pensioners who were retired/ discharged voluntary or otherwise with disability and they were in receipt of Disability/ War Injury Element as on 31.12.2015, their extent of disability/ War Injury Element shall be re-computed in the following manner given below, before applying the multiplication factor of 2.57 on existing disability/ war injury element as on 31.12.2015 for getting the revised disability/ war injury element as on 01.01.2016 in accordance to Para-2 of GOI, MOD letter No. 17(01)/2017(01)/D(Pension/ Policy) dated 04th September’ 2017.

4.  The Note below Para-12 of GOI, MOD letter No. 17(01)/2016-D(Pen/Pol) dated  29th October, 2016 (circulated vide Circular No. 570 dated 31.10.2016) stands deleted. In other words, quantum of additional pension available to old age pensioners after attaining the age of 80 years and above shall also be admissible on revised disability/ war injury element.

5. It is also stated that PDAs may take utmost care during revision of Disability/War Injury Element as per this order in those cases where the pensioners who are in receipt of 50% of Disability/ War Injury Element of Disability/ War Injury Pension. If the individual has already been given rounding of benefit through PPO (in invalided out cases) then rounding of benefit in such cases should not be given. However, where his disability was assessed as 50% in discharge cases then it will be rounded to 75% as mentioned in Para-3 above. If the PDAs found any problem regarding identification of such cases the same may please be forwarded to Audit Section of this office.

6. All Pension Disbursing Agencies handling disbursement of pension to the Defence Pensioner are hereby authorized to pay benefit of rounding off disability/ war injury and additional pension as per Para 3 & 5 above without any further authorization from the concerned Pension Sanctioning Authorities.

7. Provisions of GOI, MOD letter No. 17(01)/2017(01)/D(Pen/Policy) dated 23rd January, 2018 shall take effect from 01.01.2016.

8. This circular has been uploaded on this office website www.pcdapension.nic.in  for dissemination to all alongwith Defence pensioners and Pension Disbursing Agencies.

S/d,
Dy. Controller(P)

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