Congress warns govt on pay commission report

FOR PERSONAL ATTENTION OF

ALL GENERAL SECRETARIES OF NFPE UNIONS

        An urgent meeting like J.C.M. (D.C.) is being organized by the Postal Board at Dak Bhawan, New Delhi on Pay Commission related issues on 08.12.2015 at 11 A.M.

        All are requested to attend the meeting in time.

R.N. Parashar

                                                                                                         Secretary General

A T T E N T I O N    P L E A S E

ALL AFFILIATED ORGANIZATIONS OF CONFEDERATION

    Please read the following order and communicate to your Departmental heads, the modifications required in the Department specific recommendations of each Department.

      Regarding common demands JCM (Staff Side) will submit its views to the Government for modifications.

(M. Krishnan)

Secretary General

Confederation

CLICK HERE TO VIEW MINISTRY OF FINANCE ORDER

 

 

 

NFPE Leaders sitting on hunger fast

at Jantar Mantar , New Delhi

01 DECEMBER-2015

   

 

Further on 7th CPC Recommendations: Empowered Committee of Secretaries to seeks Comments/views from Departments, Staff Associations and JCM

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF EXPENDITURE

39-A. North Block. New Delhi-110001

November 21. 2015

D.O.No.1-4/2012-EIII(A)

Dear Sir.

The Report of the 7th Central Pay Commission was submitted to the Government on 19.11.2015. A COPY of the Report is placed on the website of Ministry of Finance (www.finmin.nic.in)

2. The process to examine the recommendations of the Commission has to commence immediately. An Empowered Committee of Secretaries chaired by cabinet Secretary is being constituted to consider the recommendations in its entirety and after considering the views of all the Departments as well as the Staff Associations and JCM. An implementation Cell is also being created In this Ministry to process the recommendations based on the views of the Ministries/Departments , Staff Associations and JCM for submitting the matter for consideration of the empowered Committee of Secretaries and thereafter for approval of the Cabinet based on the conclusions arrived at by the Empowered Committee of Secretaries.

3. Thus, the process to consider the, recommendations before it reaches a final shape for approval of the Cabinet requires consultation amongst all the Ministries/Departments who may formulate their opinion based on the views of Staff Associations under their administrative control.

Understanding the important Recommendations of 7th Pay Commission

4. Accordingly. it is requested that the following action may be taken on an urgent basis in your Department:

(i) A Nodal Officer at the level of a Joint Secretary may be nominated immediately. Whom the implementation Cell in this Ministry would be interacting with during the course of processing of the recommendations

(ii) The recommendations of the Commission may be examined in regard to issues concerning your Department and the views thereon may be furnished to this Ministry within three weeks.

(iii)The recommendations of the Commission may be examined in regard Posts/Cadre/service/ organization under your Department and the views thereon may be furnished to this Ministry within three weeks.

(iv) While formulating the views of your Department, the comments, if any of any of the recognized Staff Associations under the administrative control of your Department. may also be obtained and taken into account.

(v) In case your Department has any view on any of the recommendations contained in the Report, even though it may not directly pertain to your Department, may also be furnished under a separate category within three weeks.

(vi) In case you have any other suggestion to make in this regard, the same will be appreciated.

5. I request you, accordingly to kindly ensure that the action on the above points is given utmost priority and the same is completed within the stipulated timeline of three weeks.

With warm regards.

Yours sincerely.

sd/-

(Annie G Mathew)

View original DO Letter click here

Congress warns govt on pay commission report

Delhi Pradesh Congress Committee president, Ajay Maken, on Sunday said the Congress party will strongly oppose if the 125 percent increase in DA (Dearness Allowance), which will be due on 1 January, 2016, is not merged with the basic pay when the Central government implements the recommendations of the 7th Pay Commission for Government employees.

 

Maken said while the 7th Pay Commission has increased the salaries of higher grade officers by many folds, there will be no benefit for middle and lower level employees.

 

Maken said injustice was being done to the Central government employees, and the Congress will fight safeguard their interest. He said the Union government should protect the interests of the country and its people. "The Congress party is with the Government employees in this matter", Maken asserted.

 

Addressing two meetings to discuss the recommendations of the 7th Pay Commission at Sadiq Nagar and R K Puram today, Maken said the Congress party will spare no effort to protect the interests of the Government employees, who are its "eyes, ears and brains", inside and outside Parliament.

 

He said it was necessary to give a good deal to the Government employees to attract the best brains to Government service, as the government needs the services of the brightest, who come through tough competitions, for the best interest of the nation.

 

He said it was necessary to have the best brains in the government to ensure that in these days of globalisation, the multi-national companies do not push their way in and put such clauses, conditions and demands that would be detrimental to the interest of the nation and its people.

 

Meanwhile, reiterating his party's commitment to a strong Lokpal, Maken extended support to the move to bring DDA and Delhi Police, which are controlled by the Centre, under the purview of Delhi Lokayukta.

 

“As long as this applies to public functionaries of departments of Delhi government, DDA, MCD, NDMC, Delhi Police, and the Members of Parliament from Delhi and Union and state ministers from Delhi pertaining to their actions concerning people of Delhi, this provision in my opinion should be allowed,” Maken said.

 

The Congress leader, however, clarified that in the absence of any officially circulated draft, he would like to reserve his final comments on procedure and on other aspects of the Bill, till it is tabled in the Assembly on Monday.

 

The draft Janlokpal Bill, approved by the Delhi Cabinet, mandates the Lokayukta to look into complaints of corruption in MCD, DDA and Delhi Police.

 

This move has drawn flak from various quarters, including former AAP leader Prashant Bhushan who said it has been done to “provoke” the Centre.

 

Maken said his party had earlier also stated that under no circumstances it would support the dilution of the Janlokpal Bill as introduced by the AAP Government on February 13, 2014, in Delhi Assembly.

 

“Delhi Lokayukta should be allowed to look into acts of corruption directly impacting people of Delhi through the actions of MCD, DDA and Delhi Police also. The Congress party would again like to re-iterate its commitment for a strong Lokpal in Delhi,” he said.

“We believe in action and not just rhetoric. Delhi Government has wasted precious 10 months and we hope it would now fulfil its very important pre-poll promise by enacting a strong Jan Lokpal,” Maken said in a press statement.

Source : http://www.thestatesman.com

 

 

 

Check out top 10 points to clear all doubts in mind regarding the 7th Pay Commission pension, pay scales, MSP, MACP and more:

Check out top 10 points to clear all doubts in mind regarding the 7th Pay Commission pension, pay scales, MSP, MACP and more:

7th Pay Commission pension, pay scales – highlights, more: 

The 7th Pay Commission report has recommended an average 23.55% hike in salaries and allowances of Central government staff and the same is likely to be replicated in all the states too, except Puducherry where the same system as in Centre is already applicable – minimum pay set at Rs 18,000 per month and maximum pay at Rs 2,50,000 per month – recommended date of implementation: 01, January, 2016.

Here we provide all you ever wanted to know in 10 points on most crucial aspects of the 7th Pay Commission report:

1. 7th Pay Commission pension, pay scales, allowances – Minimum Pay: 

Based on the Dr Wallace Aykroyd formula (nutrition) , the minimum pay (salary) in government is recommended to be set at Rs 18,000 per month; Maximum Pay: Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level. If passed, the salary hikes this report is recommending are likely to boost demand for consumer goods across the spectrum, even though it could also be inflationary. (Reuters)

2. 7th Pay Commission pension, pay scales, allowances – Advances: 

a. All non-interest bearing Advances have been abolished; b. Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs 25 lakhs from the present Rs 7.5 lakhs. (PTI)

3. 7th Pay Commission pension, pay scales, allowances – Pension: 

The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement. The 7th Pay Commission received many grievances relating to New Pension System (NPS). It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism. (PTI)

4. 7th Pay Commission pension, pay scales, allowances – Performance Related Pay: 

The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes. (PTI)

5. 7th Pay Commission pension, pay scales, allowances – New Pay Structure: 

Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix. The rate of Annual Increment is being retained at 3 percent. (PTI)

6. 7th Pay Commission pension, pay scales, allowances – Modified Assured Career Progression (MACP): 

a. Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”; b. The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service; c. No other changes in MACP recommended. (Thinkstock)

7. 7th Pay Commission pension, pay scales, allowances – Military Service Pay (MSP): 

The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows: (Reuters)

8. 7th Pay Commission pension, pay scales, allowances – Short Service Commissioned Officers: 

Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. The Seventh Pay Commission also says they will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute to better their prospects in later life. (PTI)

9. 7th Pay Commission pension, pay scales, allowances – Allowances: 

The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix. a. Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance. (PTI)

10. 7th Pay Commission pension, pay scales, allowances – Financial Implications: 

The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, over the expenditure as per the “Business As Usual” scenario. Of this, the increase in pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore and increase in pension would be Rs 33,700 crore. In percentage terms the overall increase in pay & allowances and pensions over the “Business As Usual” scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent. (Image by PTI)

Source:  financialexpress.com

 

 

 

/

 

Government has decided to give pension payment order (PPO) and all other retirement benefits on the day of retirement

Government has decided to give pension payment order (PPO) and all other retirement benefits on the day of retirement

 The government has decided to give pension payment order (PPO) and all other retirement benefits on the day of retirement to all 50000 central government employees retiring every year, Union minister Jitendra Singh said on Thursday.

 

“The goal is to ensure 100 per cent payment of all retirement benefits and the delivery of pension payment order (PPO) to retiring employees on the day of retirement itself,” The Minister of State for Personnel, Public Grievances and Pensions Jitendra Singh said at the inauguration of a workshop on ‘Bhavishya ’, an online pension sanction and payment tracking system for central government retirees.

“Last year of a retiring employee is spent in preparation of pension payment order (PPO) and collecting no-dues certificates as he fears no one will let him in after he retires. The reputation of a retiring government servants becomes such that he is preparing to get his pension on time. This is just not done,” Singh said

“Our experience shows pension payments are considerably delayed. Retirees need a dignified exit from service and can’t be expected to run around for their pension payment order (PPO) and all retirement benefits or make requests to someone for it,” said an official on this occasion.

Bhavishya involves preparation of advance list of employees retiring in the next 12 months and sending each such employee a login and password for ‘ Bhavishya ‘ portal eight months before the date of his retirement on his mobile phone and e-mail ID.

The employee fills up his details on the portal and based on that information, pension forms are auto-generated by the software and submitted for processing. The system then sends SMS and e-mail alerts to the employee, his head of department and disbur...

The Minister said apart from ensuring timely disbursal of pension, the Department is also holding pre-retirement counselling for employees and considering various options on how best to utilize the experience of retired personnel who can contribute a lot to the government and society as they are energetic and resourceful for long beyond 60 years of age.

Source :http:// tkbsen.in

 

 

DECEMBER 1st & 2nd , 2015 STRIKE DEFERRED

DECEMBER 1st & 2nd , 2015 STRIKE DEFERRED

SECRETARY GENERAL AND ALL GENERAL SECRETARIES OF NFPE & AIPEU GDS (NFPE) WILL SIT ON TWO DAYS HUNGER FAST INFRONT OF DAK BHAWAN, NEW DELHI ON 1^st & 2^nd DECEMBER 2015.

ONE DAY MASS HUNGER FAST IN FRONT OF ALL CPMG / PMG & DIVISIONAL OFFICES ON 11^th DECEMBER 2015.

TO EXPRESS OUR ANGER, RESENTMENT AND STRONG PROTEST AGAINST THE REJECTION OF THE LEGITIMATE DEMANDS OF THREE LAKHS GRAMIN DAK SEVAKS BY THE NDA GOVT.

The Federal Secretariat of NFPE held at NFPE Office, New Delhi on 26-11-2015, reviewed the whole situation prevailing among the postal employees in general and the Gramin Dak Sevaks (GDS) in particular after the submission of the 7^th Central Pay Commission Report to the Govt and also after the appointment of a separate committee for GDS by the Govt, headed by a retired Postal Board Member as Chairman.

The Federal Secretariat  further reviewed the proposed two days strike call given by NFPE and AIPEU GDS (NFPE) for realization of the legitimate demands of the Gramin Dak Sevaks, which  include bringing the GDS also under the purview of 7^th CPC treating them as Civil Servants.

The main demand of NFPE and AIPEU GDS (NFPE) in the charter of demands submitted to Govt and Postal Board is “inclusion of GDS under the purview of 7^th CPC”. NFPE organized series of agitational programmes for the GDS demands including dharnas, hunger fast, GDS Parliament March, Parliament March under the banner of Postal JCA (NFPE & FNPO), one day strike on 12^th December 2012 and 48 hours strike on 12^th & 13^th February 2014. Due to our agitational programmes the Postal Board was compelled to submit the proposal for inclusion of GDS under 7^th CPC to Finance Ministry with favourable recommendations. But the Finance Ministry rejected the proposal three times and it is in this background NFPE & AIPEU GDS (NFPE) decided to go for two days strike on December 1^st & 2^nd demanding the Govt to include GDS under the 7^th Pay Commission.

Even though the Govt refused to include the GDS under the 7^th CPC, the 7^th CPC has suo moto examined the main demand of the GDS ie., treating them as Civil Servants and extending them all the benefits of the departmental employees, ofcourse proportionately. It is most unfortunate that the Pay Commission headed by a retired Supreme Court Justice as Chairman, has considered our demand and categorically stated that Gramin Dak Sevaks are holders of Civil Posts but outside the regular civil service and hence can not be treated at par with other civilian employees. After this observation of the Seventh CPC even if the GDS are included in the 7^th CPC they are not going to get a fair deal. This has compelled us to modify the demand placed by us before the Govt in the charter of demands.

NFPE, from the very beginning has opposed the appointment of an Officer Committee for GDS and NFPE & AIPEU GDS (NFPE) has tried their best to prevent appointment of an Officer Committee and compelled the department to make effort for inclusion of GDS under 7^th CPC itself. But now NDA Govt rejected our demand and has unilaterally appointed GDS Committee with a retired Postal Board Member as Chairman and cheated three lakh GDS employees. From our past experiences we know that the retired officers of the Postal Department will never do justice to the Gramin Dak Sevaks.

In view of the fact that 7^th CPC has rejected our demand for Civil Servant status and also the Govt has unilaterally imposed the officer committee on GDS, the Federal Secretariat felt that it is not appropriate to go for an immediate strike with the demands raised by us in the charter of demands, i.e., inclusion of GDS under 7^th CPC. Now GDS can get justice only if NDA Govt take a policy decision to regularize the services of GDS treating them as Civil Servants. Federal Secretariat is fully aware that we can not expect such a decision without the change in the policy of the Government towards GDS. To make a change in the policy decision of the Govt., a bigger mobilization and strike of all postal employees including GDS with the active support and solidarity of other central Govt employees under the banner of Confederation of Central Govt Employees and workers and also the JCM National Council Staffside organizations is required.

The Federal Secretariat decided to explore all possibilities and wider consultations for such a united struggle. The Federal Secretariat felt that to pave way for wider consultations, the independent strike call of NFPE & AIPEU GDS (NFPE) need to be deferred and all likeminded organizations are to be brought under a common platform. Accordingly Federal Secretariat unanimously decided to defer the proposed two days strike scheduled to be held on 1^st & 2^nd December 2015.

The Secretary General and all General Secretaries of NFPE shall sit on two days hunger fast in front of Dak Bhawan, New Delhi on 1^st & 2^nd December 2015 expressing our strong protest to the Govt and also demanding regularization of Gramin Dak Sevaks by granting them civil servant status with all consequential benefits of regular employees.

The Federal Secretariat, while saluting the grass root level workers for their intensive campaign and preparation for the strike, calls upon them to organize one day hunger fast infront of all CPMG / PMG and Divisional Offices throughout the country on 11^th December 2015 to ventilate our anger, resentment and strong protest against the callous and inhuman attitude of the NDA Govt towards three lakh Gramin Dak Sevaks who are the backbone of the Postal Department catering to the needs of the rural population of this country in postal sector.

Federal Executive of NFPE will meet shortly  to review the situation and shall decide future course of action.

=R.N.PARASHAR

SECRETARY GENERAL

 

7TH PAY COMMISSION ON PENSION, PAY AND MUCH ELSE

7th Pay Commission on pension, pay and much else: All you wanted to know about the top 4 disagreements between panel members

7th Pay Commission on pension, pay, allowancesand more has made many far reaching recommendations that will go a long way in making government servants some of the best paid employees in India. While the pay hike on an average is 23.55 per cent, government, last time round, had hiked the amount in excess of what the pay panel had asked for. Whether that will happen this time is still anyone’s guess. Justice A K Mathur was the Chairman of the Seventh Pay Commission. While there was mostly unanimity in the 7th Pay Commission, there were many disagreements too that split the panel straight down the middle. Here is all you wanted to know in 4 short points:

1. 7th Pay Commission – The Edge: An edge (read: superiority in service) is presently accorded to the Indian Administrative Service (IAS) and the Indian Foreign Service (IFS) at three promotion stages from Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and the NFSG. is recommended by the Chairman, to be extended to the Indian Police Service (IPS) and Indian Forest Service (IFoS).

Vivek Rae, Member is of the view that financial edge is justified only for the IAS and IFS. Dr. Rathin Roy, Member is of the view that the financial edge accorded to the IAS and IFS should be removed.

2. 7th Pay Commission – Empanelment: The Chairman and Dr. Rathin Roy, Member, recommend that All India Service officers and Central Services Group A officers who have completed 17 years of service should be eligible for empanelment under the Central Staffing Scheme and there should not be “two year edge”, vis-a-vis the IAS. Vivek Rae, Member, has not agreed with this view and has recommended review of the Central Staffing Scheme guidelines.

3. 7th Pay Commission – Non Functional Upgradation for Organised Group ‘A’ Services: The Chairman is of the view that NFU availed by all the organised Group ‘A’ Services should be allowed to continue and be extended to all officers in the CAPFs, Indian Coast Guard and the Defence forces. NFU should henceforth be based on the respective residency periods in the preceding substantive grade. Vivek Rae, Member and Dr. Rathin Roy, Member, have favoured abolition of NFU at SAG and HAG level.

4. 7th Pay Commission – Superannuation: Chairman and Dr. Rathin Roy, Member, recommend the age of superannuation for all CAPF personnel should be 60 years uniformly. Vivek Rae, Member, has not agreed with this recommendation and has endorsed the stand of the Ministry of Home Affairs.

Check out break 7th Pay Commission report break-up:

	2016-17 (Without VII CPC)	2016-17 (With VII CPC)	Financial Impact	Percentage Increase
1. Pay	244300	283400	39100	16
2. Allowances
HRA	12400	29600	17200	138.71
TPTA	9900	9900	0	0
Other Allowances	24300	36400	12100	49.79
3. Pension	142600	176300	33700	23.63
TOTAL:	433500	535600	102100	23.55
All figures in Rs lakh except for percentage increase SOURCE - financial express

 

Why we must not grudge them a pay hike - Article by the Professor, Indian Institute of Management, Ahmedabad - published in 'the Hindu' dt.24.11.2015

In the heyday of Indian socialism, the perception of government was benign. In today’s climate of liberalisation, the government is viewed with hostility. That must explain the negative reaction both in the media and amongst the public at large to the increases in pay for Central government employees recommended by the Seventh Pay Commission (SPC).

The pay hikes are modest — embarrassingly so in comparison with pay increases and bonuses in the private sector. Yet, media reports talk of a ‘bonanza for babus’. The impact on the fiscal can be easily digested by the Indian economy. Yet, analysts warn of slippages in the fiscal deficit, a possible boost to inflation, and a setback to public investment. Do we want to run the government — which comprises not just civil servants but the police, armed forces, nurses, doctors, regulators and academics — at all? Or have we persuaded ourselves that all of the government is simply money down the drain?

Setting pay in government

The SPC’s figures don’t come out of nowhere. The Commission has a rigorous basis for setting pay in government. It arrives at a figure for minimum pay in government with reference to norms laid down by the 15th Indian Labour Conference (ILC) in 1957. The ILC had said that the minimum wage should cover the basic needs of a worker and his family, that is, a spouse, and two children who are below the age of 14. The SPC has spelt out the norms it has used for determining basic needs. It has gone by food requirements specified by a well-known nutritionist. To this are added provisions for clothing, fuel and lighting, education, recreation, festivities, medical expenses, and housing. There is an addition of 25 per cent to the total of the above to provide for the skill factor (the basic needs having been determined for an unskilled person). The SPC report provides detailed computations for each of these items. No reasonable person can accuse the SPC of being overgenerous.

Based on these norms, the SPC arrives at a minimum wage of Rs. 18,000 for a government employee. This is 2.57 times the minimum pay in the Sixth Pay Commission. The increase over the projected pay on the current basis as of January 1, 2016 is 14.3 per cent. This is the second lowest increase recommended by any Pay Commission since the first one, and it is way below the 54 per cent increase following the last one. The multiplication factor of 2.57 is used to arrive at pay for all levels of government except for a few at the top where a slightly higher multiple is used.

As before, pay at the lower levels of government is higher than in the private sector; at the top, the position is reversed. In today’s context, this may not be a bad thing at all. Pay in the private sector today is contributing towards massive inequalities in Indian society. Having a very different structure in government is a useful corrective to trends in the private sector. It will help contain tensions created by rising inequality.

Good news

So far as the impact on government finances is concerned, the SPC numbers provide a stream of good news. First, the impact of the pay hike on the Central government (including the railways) will amount to 0.65 per cent of GDP. This is less than the impact of 0.77 per cent of GDP on account of the Sixth Pay Commission.

Second, the impact on the Central government (excluding Railways), which is what matters when it comes to the Union budget, is 0.46 per cent of GDP. As some of the increase in salary comes back to the government as taxes, the impact, net of taxes, will be even less — say, 0.4 per cent of GDP (assuming an average tax rate of around 20 per cent on government pay). This is a strictly one-off impact. The correct way to view it, therefore, would be to amortise it over a period of, say, five years. The annual impact then is 0.08 per cent of GDP. The impact on the fiscal at the central level is barely noticeable.

Trends in the wage burden in the government are worth noting. Pay and allowances in the Central government have remained stable since 2010-11 at around 1.8-2.0 per cent of GDP. Thus, pay and allowances have been rising at roughly the same level as nominal GDP or 11-12 per cent. This is the increase after taking into account increments, adjustments for dearness allowance and promotions. In the private sector, such an increase would be considered laughable at all but the lowest level.

Pay, allowances and pension (PAP) as a proportion of government expenditure has been declining sharply. In 1998-99, PAP was 38 per cent of revenue expenditure. The SPC estimates that this figure has fallen to 18 per cent in 2015-16. (It will go up to 22 per cent in 2017-17 consequent to the SPC award, but will decline thereafter, as pay grows at a lower rate than government expenditure). The implication is striking: in financial terms, the workforce in government has been effectively downsized by nearly half over the past 17 years.

Pay in the private sector is contributing towards massive inequalities in society. Having a different structure in government will help contain tensions created by this inequality

Even in terms of numbers, India’s central bureaucracy (including the Railways but excluding the armed forces) has neither been increasing in recent years nor hugely bloated in absolute terms. The number of employees grew to a peak of 41.76 lakh in 1994. It has declined since to 38.9 lakh in 2014. Of the total, 13.8 lakh is accounted for by security-related entities (police and defence civilians). Railways and Post, which perform commercial functions, account for 15 lakh personnel. There are other commercial departments as well, such as Communications. Excluding security and commercial functions, the total central employment is just 4.18 lakh. “The ‘core’ of the government…”, the SPC report notes, “is actually very small…”

The SPC substantiates its point by comparing India’s Central government workforce with that of the federal government workforce in the U.S. In 2012, the non-postal civilian workforce in the U.S. was 21.3 lakh. In India, the corresponding figure in 2014 was 17.96 lakh. The number of personnel per lakh of population in India was 139 in 2014, way below the figure of 668 for the U.S. India’s bureaucracy needs not so much downsizing as right-sizing — we need more doctors, engineers, IT specialists, tax experts, judges, and so on.

The government is not bound by the SPC’s recommendations. It can opt for higher pay hikes as happened with the previous Pay Commission. Assuming the government goes along with the SPC, what impact on growth can we expect? Increased pay for government employees means greater government expenditure and hence a fiscal stimulus — provided government expenditure on other counts is not reduced and the fiscal deficit rises. This happened at the time of the Sixth Pay Commission. Higher wages for government employees contributed to a higher fiscal deficit and helped stimulate growth in the short run.

This time round, the Finance Ministry insists that it will stick to its fiscal deficit target for 2016-17 after providing for the SPC pay hike. If it does so, the reduction in fiscal deficit will be contractionary. Hence, the pay hike will not lead to economic expansion in the aggregate. However, greater income in the hands of government employees could favourably impact sectors such as the real estate, automobiles and consumer goods.

(T.T. Ram Mohan is professor at IIM Ahmedabad)

//copy//Courtesy : The Hindu (dt.24^th Nov 2015)

 

 

Recommendations of Overtime Allowance (OTA) in 7th Pay Commission

Recommendations of Overtime Allowance (OTA) in 7th Pay Commission

7th CPC allowed Overtime Allowance (OTA) to continue in Industrial Establishments of Defence and Railway

Overtime Allowance (OTA) is granted to government employees for performing duties beyond the designated working hours.

Presently, OTA is paid in several ministries/ departments, up to a certain level, at varying rates.

Though the III, IV V and VI Pay commission recommended to abolish the Over time allowance except where it is a statutory requirement, it was continued in some departments even when it is not a statutory requirement.

But JCM-Staff Side has demanded that OTA should be paid to all government employees who are asked to work beyond office hours, on the basis of actual Pay, DA and Transport Allowance.

The commission obseved that 90% of total expenditure on Over time allowance is spent in Defence and Railway. So the recommendation on Over Time Allowance is expected very much by the employees of these two Ministries

The 7th pay commission suggested in its recommendation that

“…..government offices need to increase productivity and efficiency, and recommends that OTA should be abolished (except for operational staff and industrial employees who are governed by statutory provisions), at the same time it is also recommended that in case the government decides to continue with OTA for those categories of staff for which it is not a statutory requirement, then the rates of OTA for such staff should be increased by 50 percent from their current levels”.

A stricter control on OTA expenditure is also suggested

So the employees of Ministry of Railways and Defence breathed sigh of relief as the Pay commission recommended to continue the Over time allowance.

Source: http://www.gservants.com/

 

 

 

Black Day protest in Prakasam Dn., Ongole on 27-11-2015

   

 

Vacancy position for LGO Examination 2015-16 under 50% Promotional Quota

The Division wise tentative vacancy position pertaining to the Limited Departmental Competitive Examination (LGO-2015-16) for promotion to the cadre of Postal Assistants/Sorting Assistants under 50% Promotional Quota communicated by Circle office, Hyderabad is as follows.

P 

 

 

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