DESW DISABILITY CIRCULAR FOR POST 2016 & PRE-2016 PENSIONERS

DESW SERVICE & DISABILITY PENSION CIRCULAR FOR POST 01/01/2016 RETIREES

DESW DISABILITY  CIRCULAR FOR PRE-2016 RETIREES

   

7th Pay Commission: Minimum pay to be hiked Rs 21,000

Published On: Mon, Sep 4th, 2017

New Delhi: Finance Ministry sources today said on condition of anonymity, that minimum pay of central government employees may be hiked Rs 21,000 from Rs 18,000 suggested by the 7th Pay Commission.

The sources came up with the remark while talking to us about hiking of pay scales of all central government employees and officials by the National Anomaly Committee than the 7th Pay Commission recommendations.
There is some scope to change in minimum pay to Rs 21,000 from Rs 18,000, which was approved by the cabinet, they added.
Replying to a question, the sources said, “The demands of central government employees over hiking minimum pay Rs 26,000, higher than the Rs 18,000 had approved by the cabinet on the 7th Pay Commission’s report, is likely not to be considered by the National Anomaly Committee on behalf of the government but they may agree to recommend the minimum pay Rs 21,000 with raising fitment factor 3.00 times from 2.57 times at the behest of the Finance Minister Arun Jaitley.”
However, economists have produced countless studies either supporting or disputing the wisdom of raising the minimum pay.
“The minimum pay of central government employees Rs 18,000 was made on recommendations of the 7th Pay Commission. But government will consider hiking it after discussions with all stakeholders,” Finance minister Arun Jaitley had earlier said in a meeting.
“Raising the minimum pay could also encourage central government employees to work harder and stay on the job longer. The government should treat its employees well tend to attract good employees and retain them longer,” a top central government employees’ union leader said.
The 7th Pay Commission had recommended the minimum from Rs 7,000 to Rs 18,000 per month while the maximum pay has been hiked from Rs 80,000 to Rs 2.25 lakh per month and Rs 2.5 lakh for the cabinet secretary—the senior-most civil servant and a fitment factor of 2.57 has been proposed to apply uniformly for all employees.
The central government employees unions are demanding for hiking minimum pay Rs 18,000 to Rs 26,000 and the and asked to raising fitment factor 3.68 times from 2.57 times.
The government had formed a 22-member National Anomaly Committee headed by Secretary, Department of Personnel and Training (DoPT) in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.
After due hearing and by majority vote of all its stakeholders, the National Anomaly Committee may recommend to hike minimum pay Rs 21,000 from Rs 18,000.

HIGH LIGHTS FROM THE CONCLUDING SESSION OF SYNERGY MEET ORGANISED BY CGDA

JS(ESW) 

1. In his concluding remarks JS brought out that Disability Pension orders based on percentage basis will be issued in next 10 days. 

2. He also brought out that ESM orders on pension based on notional pay will be out soon but 95% of ESM will be beneficial by 2.57 method. Very few will be benefited by the matrix system. Record offices of all ESMs have to provide Last pay and QS etc, to PCDA(P) for issue of corr PPO. This process will take some time for the implementation of Matrix system to those who stand to gain by this method. 

Addl CGDA Pts.

1. The points submitted by Participants were  were discussed in in length & breadth. The members present gave their views on these along with the comments by CGDA. 
2. Changes being implemented by CGDA. 
3. Centralisation of Pension Disbursement Authority(PDA) with Pension Sanctioning Authority(PSA) A centralisation authority is under creation, and will be ready by Jan 2018. All retiring wef Jan 2018, will receive their pension from this authority. It will be on lines of CDA(O) where all officers get their pay directly from CDA(P) into their account. Their will be service centres on required basis who will be processing any issues raised by any individual regarding entitlements. 
4. All PPOs will be in the form of ePPOs and practice of issue of hard copies will be discontinued. These can be down loaded for the personnel record if any ESM wants for him self. However one can access all his PPOs on line as and when required. 
5. Pension Portal as existing will be further improved.
6. A new project has been launched where in CDA will fwd all LPC on line to PCDA(P). Trial with 5 Records Offices is in progress and same will be extended to all Records on operationalisation of the same soon. This is to cut down delay and loss of LPC under post.

7th CPC Minimum Pay - Rs. 19670 and uniform multiplication factor - 2.81 at all levels - Notes submitted by JCM

National Council (Staff Side)

Joint Consultative Machinery

for Central Government Employees

13-C, Ferozshah Road, New Delhi - 110001

No.NC-JCM-2017/7th CPC /Fin 

August 14 2017

The Additional Secretary,

(Sh. Pramod Kumar Das)

Government of India,

Department of Expenditure,

Ministry of Finance,

North Block, New Delhi

Dear Sir,

We write this with reference to the discussions the staff side had with you on 21st July, 2017,when the official side explained the various recommendations of the Allowances Committee and the Government's decisions thereon. It is however, our considered opinion that the said allowances committee did not consider various submissions made by the Staff side both orally and in writing especially on those allowances, which has a universal application. Had it been really addressed, the reduction in the transport allowance in the case of employees in the lower strata of hierarchy would not have happened. No justification had been advanced by the 7th CPC for the reduction of the House rent allowance rates by a universal 0.8 factor. The Committee has also not enlightened us as to how the said factor had been applied while making cosmetic changes in the rates. The Committee did not consider the following glaring and untenable and incorrect conclusions of the 7‘h CPC despite that the Staff Side pointed out it in their written submissions.

(i) The house rent allowance is one such allowance which is not cost indexed. As on 1.1.2016, the date on which the pay was revised, the DA stood at 125%. What justification could be offered to reduce the rates by 0.8%is inexplicable. By deferring the date of revised allowance by 18 months, i.e. with effect from 1.7.2017, the Government has enormously gained financially. The actual financial outflow on account of the revision of pay and allowances has thus become less than even what was projected by the 7th CPC. The Committee should have known that on all previous occasions, where the date of effect of pay and allowances had differed, the Govt. had granted Interim Relief and merger of DA. No such decision had been taken by the Government, prior to the setting up of the 7th CPC. Even the precedence on which the committee wrongly relied upon, had been set aside by the Board of Arbitration, not once but twice.

(ii) The cosmetic changes effected in the rates of HRA which is published to have benefited about 7.5 Iakhs employees is not correct but exaggerated.

(iii) The Committee's decision to retain some of the department specific allowances was on the suggestion made by the concerned heads of departments. The Staff side view had not been considered at all.

(iv) The Pension committee’s recommendation to reject Option No. 1 on the ground of infeasibility is further reflective of the attitude of the Government towards the employees and pensioners.

On 30th June, 2016 the staff side had a meeting with the group of Ministers headed by Shri Rajnath Singh, the Honourable Home Minister, when an assurance was held out to revisit the computation of the Minimum wage and multiplication factor. We were informed that the Committee headed by you would consider as to how the assurance could be implemented. Despite three rounds of meeting with you, nothing tangible in this regard has happened. In our earlier submissions we had pointed out with facts and figures as to how the 7'h CPC erred in their computation of the Minimum wage and how could never be less than Rs.26000 as on 1.1.2016. We are afraid that the repetition thereof would not serve any purpose. However, as desired by you, we give hereunder certain glaring, iniquitous and unjustified factors, the rectification of which could be the least the Government could do while revisiting the computation of Minimum wage and multiplication factor.

1. Dr. Aykhroyd formula does not speak of any averages. The commodity prices of a particular date is to be taken into account for the computation of minimum wage as on that date. Since the pay is cost indexed, the fluctuation in prices of commodities in future is taken care of by grant of dearness allowance. The 7th CPC took the average prices of various commodities between 1.7.2014 to 30.6.2015 to compute the minimum wage. This is clearly impermissible. If this error alone is set right, the minimum wage shall work out at Rs. 19294 and the MF at 2.76 (See Annexure 1)

2. The 7th CPC reduced the housing component by 4.5%. This was in line with the computation formula adopted by the 6tth CPC. Such reduction on the specious plea that Central Government employees are given HRA separately was ostensibly incorrect as the quantum of HRA provided for is insufficient to meet the expenses incurred by an individual employee for hiring an  accommodation. The point however, we would like to mention is that the 7th CPC did not notice that the 6th CPC had increased / retained the rate of HRA whereas the 7th CPC for no valid reason reduced all the three rates by a uniform factor of 0.8. The said decision reduced the HRA in metro cities by 6% in classified cities by 4% and in unclassified towns by 2%. Averaging out to 4%. It must be in the fitness of things, that the unwarranted reduction of housing component is restored especially in the background of the Allowance Committee refusing to restore the erstwhile rates. The computation of the minimum wage if this correction is carried out would be as in annexure 2. The minimum wage would then work out to Rs. 20232 and the multiplication factor at 2.89. This is when the commodity price is taken not as the average for 12 months but the actual price as on 1.7.2015.

3. The Honourable Supreme Court had directed that 25% must be added to arrive at the actual minimum wage in order to enable the employees to meet out various social obligations. Children education was on of the minor components of the social obligations mentioned by Supreme Court. When the Supreme Court delivered its verdict, education in the country was in the public domain and was almost free up to the secondary level. The advent of the neo liberal economic policies, imparting education to the children has become one of the costly affairs. The reduction effected by the 7th CPC to the extent of 10% attributable to children education is totally unjustified and in our opinion even amounts to non adherence to the supreme Court directive in the matter. If this error is rectified, the Minimum wage would be Rs. 21873 (MF 3.12) , the commodity prices being Rs. 9885 (actual as on 17,2015) and would be Rs. Rs. 20391 if computation is done on the basis of the average of the commodity prices as was done by the 7thCPC. The MF In the said two cases would be 3.124 and 2.913 respectively. (See annexure 3 and 3A).

4. The 7th CPC has adopted the family at 3 Units. This is no doubt in consonance with Dr. Aykhroyd formula. The family is taken consisting of husband, wife and two children, value assigned being 1+,O.8,+O.6,+O.6. In the present day society to assign a lower value for women is a misplaced and outdated notion. The gender equality demands that the family unit must be taken at 3.2. ( 1+1+0.6+0.6) Two workings are given in Annexure 4 and 4A. In annexure 4 commodity price is what it should be i.e. the actual prices as on 1.7.2015 and in annexure4 A the same is what is taken by the 7th CPC. The minimum wage in Annexure 4 shall be Rs. 19981 (MF2.94) and in the latter case the MW shall be Rs. 19193 and the MF at 2.74) Please see annexure 4 and 4A for detailed working.

The 6th CPC while formulating the Pay band and Grade pay system had applied varying multiplication factors to create the four pay bands. They had relied upon the same argument that the skilled workers are entitled to have better pay packets than the unskilled or semi skilled labourers. The 7th CPC has advocated the same theory to apply varying Multiplications factors for creating pay levels. The successive application of different multiplication factors has disturbed the vertical relativity and if this theory is perennially adopted in the construction of pay scales the present equilibrium will be drastically altered. The ratio between the minimum and maximum pay in Government sector has been widening ever since the 5th CPC recommendations were adopted. The 7th CPC has relied upon the private sector wage pattern for justifying this practice. On quite a number of occasions, the previous Pay Commissions had advocated against the wage determination in Government and Public Sector on the basis of the fair wage comparison with the private sector as the functions and assigned responsibilities and objectives are essentially incomparable. Large scale contractorisation and outsourcing have already come into stay in Governmental organizations with consequent suppression of wages at the levels of semi skilled and unskilled levels. We are not presently on the ethical aspect of this unfair practice, which a welfare Government ought not have indulged in. We are to state that by application of different multiplication factors (i.e. Upto pay level 5 =2.57, pay level 6-9=2.62,Level 10-13A=2.67, Level 14-16 =2.72,Level 18:2.78 and level 17:2.81. By applying the multiplication factor at 2.81 for the Secretary level officers, the 7th CPC tacitly admitted that the minimum wage should not have been less than Rs. 19670. (i.e. 2.81 x 7000 = 19670) 

In this connection we would also like to bring to you notice that the Government has now unilaterally altered the multiplication factor and Pay matrix in respect of Level 13 from 2.57 to 2.67. Assigning a lower multiplication factor to the officers of level 13 appears to be a conscious decision of the 7th CPC as the Government’s executive order in 2008 to place the staid level of officers at a higher level had disturbed the then existing vertical relativity in the Governmental hierarchy. It is, therefore, the considered opinion and suggestion of the staff side that the Government must come forward to apply the uniform multiplication factor of 2.81 at all levels both for the construction of the pay levels as also for the pay fixation in the new Pay levels for the existing employees. If our suggestion is accepted, the Minimum wage would be raised to Rs. 19670 with the multiplication factor at 2.81.

We request you to kindly convene a meeting of the staff side to cause discussions on the above submissions and arrive at a mutually acceptable conclusion.

Thanking you,

Yours faithfully,

Shiv Gopal Mishra.

Secretary

FROM THE MEETING ORGANISED BY CGDA WITH PENSIONERS

 The meeting was chaired by JS (ESW), Additional CGDA, PCDA (P), Brig Rao from Pay Commission Cell, and One Vice Admiral.

1. Circular 568 Wrong Fixation - point was discussed in length and CGDA in the last said that we are just implementing authority. ( in another words they given an indication to knock the door of the court to get relief).

2. Non Implementation of Govt orders for Enhanced Rate of Family pension age limit from 65 to 67. - Rajeev Behal has given the live proofs by submitting his own Corrigendum Ppo of 6th CPC,, CGDA replied that they will look into and necessary orders will be issued and all the widows who were deprived of their entitlement will be paid with arrears.

3. Errors in OROP Tables - Errors were shown in person to CGDA and PCDA (P), and they asked us to meet separately and will be discussed on each table and will be rectified.

4. Revision of Disability Pension and 7th Cpc second option - JS (ESW) informed the house that both the files are completed in all respects and are pending with Defence Minister, and hopefully by next week letters will be issued for these two issues.

5. Development of Software to issue pension correctly as per rules and on time - This point was raised by Rajeev Behal during under payment of pension to many pensioners and widows. Since it is the duty of Govt to pay correct pension and a blame just cannot be thrown on banks. On this CGDA and JS(ESW) informed that, tenders are already flotted, today and will be implemented by next year. And even customer/ pension care centers will be setup.

6. Issue of PPOs under 7th Cpc - CGDA replied they are working and e-ppos will be issued and can be downloaded from the website once government orders are issued.

7. On Payment of Interest for Late payments by DPDO - they were not able to answer and deliberately they changed the topic to escape, by saying once digitisation will be done this kind of problems will eliminate.

8. Audit of Pensions- This point was raised by Rajeev Behal and asked them how, Audit Cards system which is mentioned in Office Manual of CGDA has been discontinued and what is the new system. CGDA were astonished to listen this, once question on thier internal working was raised and they quickly scrolled to next slide. And later during lunch, he said me, Sir, you are asking to fix responsibilities and questing something beyond his powers.

9. War Widows- Pension case was raised by Capt Liyakat Ali, and CGDA, assured once we will be given time to discuss OROP this also will be discussed. It was also apprised to JS (ESW) that wrong tables are effecting our pension under 7th cpc too.

10. One Man Judicial Commission Recommendations and Implementation - CGDA informed that thier office and DESW is working on the same and this will see the day light soon.

11. Issue of master circular - Arjun Singh ji suggested that whenever a revision is taken place, a master circular should be issued which should show previous entitlement and new entitlement.

12. And many issues were later raised with CGDA staff by Liyakat Ji regarding Hony NB SUB, and Hony Lt & Hony Capt.

WHERE GUNS DO NOT DISCRIMINATE , BUREAUCRACY DISCRIMINATES BY THE PAYMENT OF LOWER MILITARY SERVICE PAY TO SOLDIERS