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7th Pay Commission – Government Unlikely to Announce Dearness Allowance for January – Zee News :
7th Pay Commission – Government Unlikely to Announce Dearness
Allowance for January 2016 as the same has been proposed to be merged
with Pay – If the DA announced in January is higher than 125%,
government will be compelled to revise the new salaries.
As
per an article published in Zee News recently, which has also confirmed
GConnect’s view that if CPI-IW touches 272 in December 2015, 7th Pay Commission Pay Fixation
method is poised for revision. Zee news also reports that DA from
January 2016 may not be paid as DA of 125% has been proposed to be
merged with pay with effect from January 2016 by 7th Pay Commission.
GConnect is of the view that if 7th Pay Commission is implemented before April 2016, then increase in DA from January 2016 may not be announced separately as it is done normally. However, new pay on implementation of 7th pay Commission report would take care of this increase in DA with effect from January 2016 as DA as on 1st January 2016 would have been merged with Pay. If DA from January 2016 is 126% then we can expect revision of fitment factor to 2.58.
On the other hand, if 7th Pay Commission report is implemented after April 2016, then Central Government Employees including Railway Employees and Defence Personnel can expect the announcement of granting additional installment of DA with effect from January 2016, which will be adjusted in arrears of pay and allowance on account of revision of pay on implementation of 7th Pay Commission report with effect from January 2016.
It may be recalled that DA from January 2006 to July 2008 was paid as usual and when 6th Pay Commission was implemented in 2008, through due and drawn statement for payment of Arrears of pay from January 2006, DA paid on pre-revised pay was adjusted. It appears that Govt would follow the same procedure this time also
We have given below the text of the report of Zee News on this topic.
GConnect is of the view that if 7th Pay Commission is implemented before April 2016, then increase in DA from January 2016 may not be announced separately as it is done normally. However, new pay on implementation of 7th pay Commission report would take care of this increase in DA with effect from January 2016 as DA as on 1st January 2016 would have been merged with Pay. If DA from January 2016 is 126% then we can expect revision of fitment factor to 2.58.
On the other hand, if 7th Pay Commission report is implemented after April 2016, then Central Government Employees including Railway Employees and Defence Personnel can expect the announcement of granting additional installment of DA with effect from January 2016, which will be adjusted in arrears of pay and allowance on account of revision of pay on implementation of 7th Pay Commission report with effect from January 2016.
It may be recalled that DA from January 2006 to July 2008 was paid as usual and when 6th Pay Commission was implemented in 2008, through due and drawn statement for payment of Arrears of pay from January 2006, DA paid on pre-revised pay was adjusted. It appears that Govt would follow the same procedure this time also
We have given below the text of the report of Zee News on this topic.
Central government employees unhappy with the recommendations of the 7th Central Pay Commission on salary hike, may be waiting for the Labour Ministry to announce the All India Consumer Price Index or AICPIN (for Industrial workers) for the month of December with effect from January 2016Source: Zee News
On the basis of AICPIN, government announces the Dearness Allowance( DA) for Central Government employees. The DA is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay on account of inflation.
After all its a matter of one’s monthly salary hikes! It is not unfair to hope that AICPIN for December is high, resulting in the DA higher than 125%, which the 7th CPC pegged for calculating the minimum pay determination and the fitment factor for the new pay structure.
The government reviews the DA every six months. The Cabinet, in September, had approved a proposal to hike dearness allowance by 6 percent to 119 percent of the basic pay, effective from July 1, 2015.
If the DA announced in January is higher than 125%, government will be compelled to revise the new salaries.
Since the 7th PC has already merged the DA with the new pay, government is unlikely to announce DA in January 2016 at all.
When the 6th Pay Commission’s recommendations were implemented from January 2006 onwards, the DA for the months of January 2006 to June 2006 was not paid. DA was issued only from the month of June 2006.
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Directorate of Government Examination (DGE) is going to announce the Tamil Nadu 12th time table 2016
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2016 is available below. Expected DA from January 2016 – Two Point increase in Dec 2015 may change 7th Pay Commission fitment formula :
Expected DA from January 2016 – Two Point increase in CPI for Dec
2015 could take it to 126% which is 1% more than what was reckoned for
7th Pay Commission revised Pay fixation.
If DA from January 2016 touches 126%, 7th Pay Commission fitment formula and Multiplication factor of 2.57 may require upward revision
Consumer Price Index (Industrial Workers) for the month of November 2015 has been released recently by Govt. We have one point increase in CPI for November 2015 which has moved from 269 to 270.Consumer Price Index from January 2015 to November 2015
| Month | Actual AICPI-IW |
| Jan-2015 | 254 |
| Feb-2015 | 253 |
| Mar-2015 | 254 |
| Apr-2015 | 256 |
| May-2015 | 258 |
| Jun-2015 | 261 |
| July-2015 | 263 |
| Aug-2015 | 264 |
| Sep-2015 | 266 |
| Oct-2015 | 269 |
| Nov-2015 | 270 |
| Dec-2015 | Not released |
DA from January 2016 – Estimation for 125%:
Based on actual CPI-IW for 11 months from January 2015 to November
2015 which span from 254 to 270 and estimated index for the month of
December 2015, it is almost certain that Dearness Allowance from January
2016 payable to Central Government Employees including Railway Employees and Defence Personnel will not be less than 125% (6% increase).
Even a 12 point fall in CPI-IW from 270 to 258 in December 2015 will not affect the DA from January 2016 clocking 125%.
Even a 12 point fall in CPI-IW from 270 to 258 in December 2015 will not affect the DA from January 2016 clocking 125%.
| DA from Jan 2016= | [(254+253+254+256+258+261+263+264+266+269+270+258)-115.76]*100/115.76 |
| = | 125 % (6% increase in DA from Jan 2016) |
DA from January 2016 – Estimation for 126%:
Our Proposition discussed in the earlier article on the chances for
DA from January 2015 reaching 126% (7% increase) still holds good as two
point increase in the CPI-IW in December 2015 would take DA from
January 2016 to 126%.
Click here to read: DA from January 2016 may touch 126%
Click here to read: DA from January 2016 may touch 126%
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7th Pay Commission report on Fixed Medical Allowance:
Fixed Medical Allowance – The existing amount of Rs.500 p.m which was raised from 19.11.2014 to continue
The Commission has received representations seeking enhancement in
Fixed Medical Allowance, currently payable at the rate of ₹500 per month
for pensioners not covered under Central Government Health Service (CGHS).
It is granted to pensioners for meeting expenditure on day to day medical expenses that do not require hospitalization, presently payable at the rate of ₹500 pm. Demands have been received to increase the rate of this allowance to ₹2,000 pm.
Pensioners are not covered under the CS (MA) Rules. Pensioners residing outside CGHS areas are entitled to Fixed Medical Allowance (FMA) @ ₹500 per month for their OPD/IPD needs. Such pensioners can also avail IPD/OPD under CGHS subject to some conditions.
The Commission has received representations seeking enhancement in Fixed Medical Allowance, currently payable at the rate of ₹500 per month for pensioners not covered under Central Government Health Service (CGHS).
Analysis and Recommendations :
The Commission notes that this allowance was enhanced from ₹300 pm to ₹500 pm from 19.11.2014.
As such, further enhancement of this allowance is not recommended.
It is granted to pensioners for meeting expenditure on day to day medical expenses that do not require hospitalization, presently payable at the rate of ₹500 pm. Demands have been received to increase the rate of this allowance to ₹2,000 pm.
Pensioners are not covered under the CS (MA) Rules. Pensioners residing outside CGHS areas are entitled to Fixed Medical Allowance (FMA) @ ₹500 per month for their OPD/IPD needs. Such pensioners can also avail IPD/OPD under CGHS subject to some conditions.
The Commission has received representations seeking enhancement in Fixed Medical Allowance, currently payable at the rate of ₹500 per month for pensioners not covered under Central Government Health Service (CGHS).
Analysis and Recommendations :
The Commission notes that this allowance was enhanced from ₹300 pm to ₹500 pm from 19.11.2014.
As such, further enhancement of this allowance is not recommended.
7CPC Report – Detrimental to Central Government Employees – 5 Term MP says:
7CPC Report – Detrimental to Central Government Employees – 5 Term MP / MPLA observes in his blog – 7th Pay Commission’s Recommendations are not beneficial to low paid employees and tilted towards higher level officers
Mr.Ajay
Maken, Former Union Minister from Congress Party and five term Member
of Parliament and Legislative Assembly, observes that 7th Pay Commission
Report provides meagre benefits while comparing the salary increase
recommended by previous Pay Commissions.
The Chairman of Seventh Central Pay Commission Justice Ashok Kumar Mathur has since presented voluminous recommendation consisting of 875 pages to Hon’ble Finance Minister. When we go through the recommendations it appears that it anti low paid employees and failed to improve their financial condition, short of suggesting measures for better and encouraging working conditions for them. It is tilted towards higher level officers.
The Chairman of Seventh Central Pay Commission Justice Ashok Kumar Mathur has since presented voluminous recommendation consisting of 875 pages to Hon’ble Finance Minister. When we go through the recommendations it appears that it anti low paid employees and failed to improve their financial condition, short of suggesting measures for better and encouraging working conditions for them. It is tilted towards higher level officers.
2.The following important issues on which recommendations are made show the negative approach of the commission towards low level employees, which may be due to anti employee actions ofthe present Government. After independence seven Pay Commissions have been constituted all by Congress or Congress led Governments. NDA Government during the year 2003 was in power but refused to constitute 6th Pay Commission in spite of recommendation of 5th CPC to constitute 6th Pay Commission on 1st Jan, 2003 so that its recommendations could be implemented wef 1st Jan, 2006. This proves beyond doubt that the present BJP Government too is not serious to improve working condition and in financial upgradation of majority of employees. Brief details of main recommendations are:-Source: Ajay Maken Blog
Fitment: For fixation of pay effective from 1st Jan, 2016, fitment factor of 2.57 has been proposed for application uniformly for all the employees. It includes a factorof 2.25 is on account of Dearness Allowance neutralisation, assuming that DA would be 125 percent at the time of implementation of the new scale out of 2.57 of fitment formula recommended. The hike will only be 14.29 percent.
The enhancement of pay by 14.29% is very depressing for the employees in past after submission of 5th and 6th Pay Commissions report the minimum hike given was 40%.
(A) It has been our consistent demand to reduce gap between the lowest paid and the highest paid employees from 1:12, recommended by 6th CPC to 1:8 but instead of reducing the gap it has been further increased by the 7th Pay Commission to 1 to 14.
(B) As per para 5.1.27 of the report, “it is proposed that fitment factor of 2.57 is being applied uniformly for all employees.” Whereas at Table 5 : Pay Matrix (Civilian Employees) for level 1 to 5 it is 2.57 and in respect of remaining higher levels except level 13 it ranges between 2.62 to 2.81. It proves that senior officers have been favoured by the Commission in fitment process.
(C) 6th Pay Commission had recommended annual Increment between 3 to 4% of Pay plus Grade Pay whereas Seventh Pay Commission has restricted it to 3% only.
(D) The 7th Pay Commission has proposed to withhold annual increments of those employees who are not able to meet the benchmark either for MACP or regular promotion within first 20 years of service, under the given condition an employee will be left with no option but to leave the job and seek retirement.
(E)Recommendationto withdraw some benefits which employees are already availing:
(i) In the name of parity in the rank of Assistants, between the field staff and headquarter staff grade pay of Rs 4,600 of Asstts of CSS has been placed in the new pay matrix in Level 6, the level corresponds to pre-revised GP of Rs 4200. Similarly the corresponding posts in the Stenographers cadre willalso follow same parity and thus will be deprive of GP of 4600.
(ii) Non-functional selection scale with the GP of 4200 was granted to 30% Upper Division Clerks in CSS and Allied Offices, which is now being withdrawn at the cost of UDCs awaiting grant of NFSS.
(iii) At present two additional increments are granted at the time of promotion to Under Secy/PPS in CSS/CSSS it is suggested to abolish the benefit.
(F) Recommendation to abolish Allowances, reduce percentage, de-link benefit of DA:
(i) The quantum of percentage based allowances has been reduced, the 6th CPC had doubled it whereas 7th Pay Commission has suggested rationalisation by a factor of 0.8 (para 8.2.3). This will reduce present percentage based allowance for example House Rent Allowance which is at present 30, 20 and 10% in respect of Class X, Y and Z category of cities will come down to 24, 16 and 8% .In the same pattern percentage of other allowances will also be reduced.
(ii) All non-interest bearing Advances viz Festival etc have been abolished.
(ii)Motor Car, Motor Cycle/Scooter/Moped advances have been abolished.
(iii) 52 Allowances presently available to employees will discontinue.
(iv) Identities of 36 allowances have been abolished as separate and proposed to be subsumed with existing or newly introduced allowances.
(v) Transport Allowance which is at present linked with DA, with release of every additional instalment of Dearness Allowance, TA is also proportionally increases, this will be done away.
(G)Rates of contribution by various levels of employees towards insurance coverage have been exorbitantly increased, the details are:(H) Process of Cadre Review has been made very difficult.
Level of Employee Present Monthly Deduction Proposed Monthly Deduction 10 and above Rs 120/- Rs 5,000/- 6 to 9 Rs 60/- Rs 2,500/- 1 to 5 Rs 30/- Rs 1,500/-
In short Central Government Employees are frustrated and disappointed with the major recommendations of the Commission. It is unfortunate that the employees, who were given 40% hike in their respective pay has now been recommended only 14.29%. This is unjust and humiliating for the beneficiaries.
We have decided to express our resentment and demand at least 40% hike in the pay of various categories of employees.
7th pay commission report on Retirement Gratuity Vivek December 13, 2015 7th Pay Commission:
7th Pay Commission recommends for increasing Retirement Gratuity Ceiling limit from Rs.10 lakhs to Rs.20 lakhs from 1.1.2016
The Commission recommends enhancement in the ceiling of Retirement gratuity from the existing ₹10 lakh to ₹20 lakh from 01.01.2016.
A number of representations have been received by the Commission stating that there is a need to revise the existing ceiling of ₹10.00 lakh with regard to payment of service gratuity.
Analysis and Recommendations :
Rule 49 and 50 of the CCS (Pension) Rules provides that a government servant is entitled to get retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service subject to a maximum of 16.5 times of the last emoluments subject to a maximum of ₹10 lakh.
The Commission sought the views of the government in this regard. The Department of Pension and Pensioners Welfare stated that the VI CPC has increased the amount of gratuity from ₹3.5 lakh to ₹10 lakh w.e.f. 01.01.2006. This amount, in the view of the department, is not commensurate with emoluments that are available to senior officers at the time of retirement. The department has suggested to the Commission that a view could be taken to index gratuity with amount of DA admissible at the time of retirement.
The Commission notes that there is merit in the argument advanced to index the ceiling on gratuity so that the benefits of the enhanced ceiling are available to personnel in a manner which is more even over a time frame.
The Commission recommends enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh from 01.01.2016. The Commission further recommends, as has been done in the case of allowances that are partially indexed to Dearness Allowance, the ceiling on gratuity may increase by 25 percent whenever DA rises by 50 percent.
A number of representations have been received by the Commission stating that there is a need to revise the existing ceiling of ₹10.00 lakh with regard to payment of service gratuity.
Analysis and Recommendations :
Rule 49 and 50 of the CCS (Pension) Rules provides that a government servant is entitled to get retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service subject to a maximum of 16.5 times of the last emoluments subject to a maximum of ₹10 lakh.
The Commission sought the views of the government in this regard. The Department of Pension and Pensioners Welfare stated that the VI CPC has increased the amount of gratuity from ₹3.5 lakh to ₹10 lakh w.e.f. 01.01.2006. This amount, in the view of the department, is not commensurate with emoluments that are available to senior officers at the time of retirement. The department has suggested to the Commission that a view could be taken to index gratuity with amount of DA admissible at the time of retirement.
The Commission notes that there is merit in the argument advanced to index the ceiling on gratuity so that the benefits of the enhanced ceiling are available to personnel in a manner which is more even over a time frame.
The Commission recommends enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh from 01.01.2016. The Commission further recommends, as has been done in the case of allowances that are partially indexed to Dearness Allowance, the ceiling on gratuity may increase by 25 percent whenever DA rises by 50 percent.
7th Pay Commission Report on Leave Encashment of EL Vivek December 13, 2015 7th Pay Commission :
7th Pay Commission Report on Leave Encashment of EL – Existing Earned Leave ceiling of 300 days to continue.
7th CPC has received representations seeking raising the ceiling
limit of 300 days to 450 days for purposes of Leave encashment of Earned
Leave.
leave encashment permitted at the time of retirement :
leave encashment permitted at the time of retirement :
| CPC | Earned Leave |
| IV CPC | 240 days |
| V CPC | 300 days |
| VI CPC | 300 days # |
| # Excludes 60 days EL encashment during LTC | |
Analysis and Recommendations : The Commission noted
that serving employees are entitled for encashment of Earned Leave up to
60 days while in service. This will not to be deducted from the maximum
number of Earned Leave of 300 days encashable at the time of retirement.
The recommendations in relation to pay of both the civilian and defence forces personnel will also lead to a significant increase in the pay drawn and therefore in the total amount of leave encashment available for an employee.
Therefore the present ceiling of 300 days Earned Leave for encashment at the time of retirement will continue.
The recommendations in relation to pay of both the civilian and defence forces personnel will also lead to a significant increase in the pay drawn and therefore in the total amount of leave encashment available for an employee.
Therefore the present ceiling of 300 days Earned Leave for encashment at the time of retirement will continue.
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CELL No-9843175552
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