Analysis And Recommendations Of 7th Pay Commission On House Rent Allowance
Allowances related to Housing : House Rent Allowance (HRA) : Presently, HRA is payable at the following rates:
There are a large number of demands for paying HRA as a percentage of
(Basic Pay + DA), instead of as a percentage of Basic Pay alone, as at
present. Representations have also been received regarding enhancement
of percentage rates and having only two classifications of Metros and
Non-metros (instead of the present classification of X, Y and Z cities).
PBORs of uniformed forces have vehemently argued for doing away with the
concept of Authorized Married Establishment and the requirement of a
minimum age of 25 years for grant of Compensation in Lieu of Quarters
(CILQ).
Analysis and Recommendations: Compensation towards the housing needs of Central Government employees is covered in three ways:
1. As a component of Basic Pay when it is initially fixed (based upon the Aykroyd formula)
2. As a constituent of Dearness Allowance [the AICPI(IW), on which the
DA is currently based includes a weight of 15.27% towards housing], and
3. In the form of House Rent Allowance
In view of the fact that the DA calculation methodology that is being
followed does include a certain weightage for housing, the demand to pay
HRA as a percentage of Basic Pay + DA is not justified.
To arrive at the appropriate rates of HRA, the Commission used a
two-fold approach: (i) It compared the rise in housing compensation with
the cost of housing in major X, Y and Z category cities over the period
2006 to 2013, and (ii) It compared, de novo, the HRA after the rise in
Basic Pay proposed with representative house rents in major X, Y and Z
category cities.
For (i) above, the table of comparison (for a hypothetical employee whose Basic Pay was Rs.1000 in 2006) is given below:
As is clear from the above table, compensation for housing in 2013 was
1.79 times that in 2006 for Class X cities, 2.07 times for Class Y
cities and 2.92 times for Class Z cities.
During the same period, the weighted (by population of cities) average
rise31 in housing index for Class X cities was 1.69 times, for thirty
most populated Class Y cities it was 2.10 times, and for twenty-five
most populated Class Z cities it was also 2.10 times.
Thus, it can be safely concluded that the rise in housing compensation
has largely kept pace with the rise in rental values in all categories
of cities.
However, if a zero-based comparison of HRA with house rents is carried
out the Commission observed that today there are websites that give a
good idea of the prevalent house rents in various cities. From the
information available on the websites, it was observed that with the
increase in Basic Pay proposed (and consequent rise in HRA with the
rationalized percentages), most of the employees will be able to afford a
rented house as per their entitlement.
The Commission also took note of the link between increase in HRA and
increase in house rent. There was a sharp rise in the index from the
first half of 2009, immediately following VI CPC recommendations. The
All India House Rent Index32 chart given below demonstrates this:
Considering all these factors, and in line with our general policy of
rationalizing the percentage based allowances by a factor of 0.8, the
Commission recommends that HRA should be rationalized to 24 percent, 16
percent and 8 percent of the Basic Pay for Class X, Y and Z cities
respectively.
However, the Commission also recognizes that with the current
formulation, once the new pay levels are implemented, the compensation
towards HRA will remain unchanged until such time as the pay and
allowances are next revised. Going by the historical trend this event is
likely to be a decade away. Some representations have been received
stating that towards the later part of the ten year period the HRA
compensation falls considerably short of the requirement. Having regard
to this, the Commission also recommends that the rate of HRA will be
revised to 27 percent, 18 percent and 9 percent when DA crosses 50
percent, and further revised to 30 percent, 20 percent and 10 percent
when DA crosses 100 percent.
Currently, in the case of those drawing either NPA or MSP or both, HRA
is being paid as a percentage of Basic Pay+NPA or Basic Pay+MSP or Basic
Pay+NPA+MSP respectively. HRA is a compensation for expenses in
connection with the rent of the residential accommodation to be
hired/leased by the employee and is graded based on the level of the
employee, and therefore should be calculated as a percentage of Basic
Pay only. Add-ons like NPA, MSP, etc. should not be included while
working out HRA.
Keyword: HRA, House Rent Allowance, 7th CPC HRA, 7th CPC House Rent
Allowance, 7th Central Pay Commission, 7th CPC Report, HOUSE RENT
ALLOWANCE
Difference between National Pension System (NPS) and Atal Pension Yojana (APY)
DIFFERENCE BETWEEN NATIONAL PENSION SYSTEM (NPS) AND ATAL PENSION YOJANA (APY)
Recently
Central Government launched one more pension scheme called Atal Pension
Yojana. So what is the difference between existing National Pension
System (NPS) and Atal Pension Yojana (APY)?
DIFFERENCE OF NPS AND APY
Let us point one by one.
1) Age of joining–
The
age for joining the National Pension System (NPS) is 18-60 years.
Whereas for Atal Pension Yojana (APY) the age eligibility is 18-40
years.
2) Who can join?
All
Indian citizens can join NPS (whether they are resident or
non-resident). Whereas for APY only Resident Indians are allowed to
join.
3) Pension Slabs–
In
case of NPS, there is no such standard pension slab. However, in APY
the pension slabs are fixed like Rs 1,000/-, 2,000/-, 3,000/-, 4,000 and
5,000/- per month.
4) Types of Accounts–
In
case of NPS, you have two types of accounts. One is Tier I and Tier II.
Whereas, in case of APY there is no such differentiation.
5) Minimum and Maximum Contributions–
In case of NPS
For Tier I
You
must contribute a minimum of Rs. 6,000 per annum. The minimum of Rs.
500 per contribution is required. In addition, you must
contribute minimum 4 contributions per year. There is no maximum limit.
For Tier II
You have to contribute the minimum of Rs. 1,000 contribution at a time of account opening.
Subsequently,
you have to contribute a minimum of Rs. 250 per subsequent
contributions. Minimum Balance of Rs. 2,000 be maintained at the end of
Financial Year (April-March). There is no maximum limit.
In case of APY
In
case of APY, the minimum and range depends on the age. For example, the
minimum monthly contribution for 18 years of age person is Rs.42 to get
Rs.1,000 monthly pension. At the same time, the minimum monthly
contribution for 40 years age person is Rs.291.
There
is no upper limit of investment set for both NPS Tier I and Tier II
Account. However, in case of APY, the maximum limit for 18 years of age
is 210 to get a monthly pension of Rs.5, 000. At the same time, the
maximum monthly contribution for 40 years of age person is Rs.1, 454.
6) Premature Withdrawal–
For NPS–
Tier I
- You can withdraw at age 60, 40% of accumulated amount be used to buy annuities from an IRDA approved insurance company, A phased withdrawal is also allowed, but the lump sum balance should be withdrawn before the age of 70 years.
- To exit before 60 years age, only 20% of the lump sum to be cash withdrawal, 80% to be used to buy annuities from an IRDA approved insurance company.
- On death before the age of 60, the nominee receives a lump sum.
Tier II
There is no restriction and you can withdraw it at any point of time.
For APY–
- Once you attain the age of 60 years, then you have no option but to utilize 100% of the accumulated amount for a pension. No partial withdrawal is permitted.
- You cannot withdraw in APY. Withdrawal is available only in case death or terminal diseases.
7) Choice of investment–
In
case of NPS, you have primarily two choices. One is Auto Choice where
the asset allocation among equity, Corporate Bonds, and Government Bonds
are adjusted automatically based on age of a subscriber. Another is
Active Choice, where you select your asset allocation (subject to the
maximum of 50% in equity). In addition, you have a freedom to choose
fund managers to manage your money.
In case of APY, there are no such options.
8) Tax Benefit–
While Investing–
The tax benefit in NPS will be available only in case of Tier I account, but not for Tier II account.
Employer
contribution to the NPS on behalf of an employee will get a deduction
from his income (i.e. employer’s income) an amount equivalent to the
amount contributed or 10% of BASIC SALARY + DA of the employee,
whichever is less. (Section 36 (1) (iv a) of the Income Tax Act 1961).
Employer’s
contribution to NPS on behalf of the employee is treated as perquisite
in the hands of the employees. However, it is deductible u/s 80CCD (2)
of the IT Act, 1961 to the extent of 10% of basic salary. This deduction
is over and above the limit of Rs.1.5 lac u/s 80 CCD (1). This will
lessen the tax burden of the employee to the extent of amount deductible
u/s80CCD (2) of the IT Act, 1961.
Contribution
by an individual employee is eligible for a deduction from Income under
Section 80CCD (1) of the IT Act 1961 up to Rs 1.5 Lakhs. However,
investments under Section 80C Section 80CCC and 80CCD(1) should not
exceed Rs.1.5 lakhs per assessment year to claim the deduction.
An
additional tax benefit of Rs.50,000/- under section 80CCD (1B) per year
(applicable from FY 2015-16/AY 2016-17) for NPS investments.
There are no such tax benefits of investing in APY.
While receiving pension–
Both NPS and APY pension is treated as taxable income under the head of a salary.
9) Where to open an Account?
In
case of NPS, you have to open the account by visiting the nearest Point
of Presence (POP) branch to open the account. This account could also
be opened online through CAMS online, India Post etc.
In case of APY, you have to approach the bank/Post Office where your savings bank account is held.
10) Nomination facility-
In
case of NPS, the nomination is not mandatory. However, you can
nominate a maximum of 3 members. The total sum sharing of all these
nominees must be equal to 100%.
In case of APY, the nomination is mandatory. You have to provide nominee details while opening the account.
11) How much return you can expect?
In
case of NPS, returns are not guaranteed. It depends on the performance
of the fund. Whereas, in case of APY, returns not disclosed. But set the
fixed monthly pension.
12) Government contribution–
In
case of NPS, the Central Government and State Government employee’s
contribution are fixed at 10% of the Basic and Dearness Allowance (DA)
per month which is matched by an employer contribution of the same
amount. For the rest of the people, there is no Government contribution.
In
APY, the Government will also contribute 50% of the total contribution
or Rs. 1,000/- per annum, whichever is lower, to the eligible APY
account holders who join the scheme during the period 1st June, 2015 to
31st December, 2015. The Government contribution will be for 5 years
from FY 2015-16 to 2019-20. This contribution to APY will not be
applicable to those members who are-
- Income Tax Payers.
- Employees’ Provident Fund & Miscellaneous Provision Act, 1952.
- The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
- Assam Tea PlantationProvident Fund and Miscellaneous Provision, 1955.
- Seamens’ Provident Fund Act, 1966.
- Jammu Kashmir Employees’ Provident Fund & Miscellaneous Provision Act, 1961.
- Any other statutory social security scheme.
13) Who manages?
NPS is managed by PFRDA. The APY scheme is administered by the PFRDA/Government.
14) Permanent Account Number–
In
case of NPS, you will get the unique Permanent Retirement Number
(PRAN). By quoting this PRAN, you can operate NPS sitting across India.
There is no such facility in APY.
15) How many accounts, one can open?
For both NPS and APY an individual can open only ONE account.
Government proposes to construct houses for serving and retired CG employees
GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN POVERTY ALLEVIATION
LOK SABHA
STARRED QUESTION NO: 145
ANSWERED ON: 09.12.2015
Housing Scheme for Government Employees
CHARANJEET SINGH RORI
Will the Minister of HOUSING AND URBAN POVERTY ALLEVIATION be pleased to state:
(a) the housing satisfaction level of the Central Government employees in the country;
Will the Minister of HOUSING AND URBAN POVERTY ALLEVIATION be pleased to state:
(a) the housing satisfaction level of the Central Government employees in the country;
(b) whether the Government
proposes to construct houses for serving and retired Central Government
employees in various parts of the country;
(c) if so, the details thereof and the action taken/being taken by the Government in this regard;
(d) the details of schemes previously launched for serving and retired Central Government employees; and
(e) whether the Central
Government Employees Welfare Organization (CGEWHO) proposes any special
housing scheme for the Central Government employees and if so, the
details thereof ?
ANSWER
THE MINISTER OF HOUSING & URBAN POVERTY ALLEVIATION
[SHRI M. VENKAIAH NAIDU]
(a) to (c) Yes, Madam. As
part of fulfilling the housing satisfaction level of Government
employees in the country, CGEWHO addresses housing shortage issues by
providing housing to central government employees as per their demand,
availability of land, feasibility of the project etc. The Central
Government Employees Welfare Housing Organization (CGEWHO) has completed
30 projects consisting of 13927 Dwelling Units in various parts of the
country for central government employees. In 2009, CGEWHO had conducted a
demand survey in twenty cities across the country. Substantial demand
was received from the employees in Pune, Nagpur, Patna, Dehradun,
Chandigarh and Thiruvananthapuram as per details provided at Annexure-
I. A request for all the six stations has been made to the respective
State Governments for allotment of suitable land and the schemes will
progress on allotment of the same.
(d) The CGEWHO has already
completed 30 housing schemes consisting of 13927 Dwelling Units. It
also has four schemes under progress, consisting of additional 3211
Dwelling Units in various parts of the country, as per details at
Annexure-II.
(e) No, Madam.
*****
Annexure-I
DEMAND SURVEY OF CGEWHO IN 2009
Demand Survey for 20
cities of different states has been published in the ‘INDIAN EXPRESS’
All India Edition & CGEWHO’s official website www.cgewho.nic.in {NOW
cgewho.in} with the last date as 24/08/2009. Nos of applications
received in total are given here in under.
NAME OF STATION
|
Applications Received
| |
Assam
| ||
1. Guwahati
|
226
| |
Bihar
| ||
2. Patna
|
964
| |
Chhatisgarh
| ||
3. Raipur
|
69
| |
Goa
| ||
4. Goa
|
127
| |
Gujrat
| ||
5. Vadodra
|
170
| |
Himachal Pradesh
| ||
6. Shimla
|
244
| |
Jammu & Kashmir
| ||
7. Jammu
|
42
| |
Jharkhand
| ||
8. Ranchi
|
195
| |
Karnataka
| ||
9. Mysore
|
334
| |
Kerala
| ||
10. Thiruvananthapuram
|
630
| |
Maharashtra
| ||
11. Nagpur
|
794
| |
12. Pune
|
1610
| |
Madhya Pradesh
| ||
13. Bhopal
|
139
| |
14. Indore
|
73
| |
15. Jabalpur
|
239
| |
Uttar Pradesh
| ||
16. Agra
|
96
| |
17. Allahabad
|
90
| |
Uttara Khand
| ||
18. Dehradun
|
955
| |
Union Territory
| ||
19. Chandigarh
|
2249
| |
West Bengal
| ||
20. Siliguri
|
62
| |
Study of Demand Survey : CGEWHO
had categorized the pattern of the paid demand survey broadly in three
depending on the No(s) of responses received (i) <100 ii="">100
and <500 iii="">500. The SIX Stations which was having 500+ applications
were identified for future schemes and Response Amount cashed. Rest
applications of different stations were refunded forthwith; after
approval of GC.
NAME OF STATION Under Category-II
|
APPLICATIONS RECEIVED
|
NAME OF STATION Under Category-III
|
APPLICATIONS RECEIVED
|
1. Mysore
|
334
|
1. Agra
|
96
|
2. Shimla
|
244
|
2. Allahabad
|
90
|
3. Jabalpur
|
239
|
3. Indore
|
73
|
4. Guwahati
|
226
|
4. Siliguri
|
62
|
5. Ranchi
|
195
|
5. Jammu
|
42
|
6. Vadodara
|
170
|
6. Raipur
|
69
|
7. Bhopal
|
139
| ||
8. Goa
|
127
|
Annexure-II
The projects completed by CGEWHO are as under:
Project Name
|
Area (in acres)
|
No. of DUs
|
Chennai Ph-I
|
10
|
524
|
Nerul
|
6.2
|
384
|
Panchkula Ph-I
|
2
|
98
|
Noida Ph-I
|
12
|
692
|
Kolkata Ph-I
|
10
|
576
|
Kharghar
|
19
|
1230
|
Noida Ph-II
|
8.25
|
508
|
Gurgaon Ph-I
|
25
|
1088
|
Chandigarh
|
10
|
305
|
Bangalore
|
8.2
|
603
|
Hyderabad Ph-I
|
6.5
|
344
|
Kochi
|
3
|
43
|
Gurgaon Ph-II
|
13
|
852
|
Pune Ph-I
|
5
|
159
|
Noida Ph-III
|
16
|
980
|
Noida Ph-IV
|
13
|
720
|
Ahmedabad
|
6.41
|
310
|
Jaipur Ph-I
|
3
|
184
|
Hyderabad Ph-II
|
3
|
178
|
Panchkula Ph-II
|
5
|
240
|
Noida Ph-V
|
11
|
576
|
Lucknow Ph-I
|
4.5
|
130
|
Pune Ph-II
|
5
|
148
|
Chennai Ph-II
|
11.32
|
572
|
Jaipur Ph-II
|
6.8
|
572
|
Hyderabad Ph-III
|
6.5
|
380
|
Mohali Ph-I
|
9.56
|
603
|
Bhubaneswar Ph-I
|
5
|
256
|
Meerut Ph-I
|
1.91
|
90
|
Kolkata Ph-II
|
10.06
|
582
|
Following Projects are under construction as on date:
Station
|
Area (in acres)
|
No. of DUs
|
Bhubaneswar Ph-II
|
5
|
240
|
Greater Noida
|
38
|
2130
|
Mohali Ph-II
|
8.66
|
615
|
S A S Nagar
|
5.63
|
226
|
Special Campaign under Swachh Bharat Mission from 18th to 27th December, 2015
No. 18-41/2014-Bldg
Government of India
Ministry of Communications and Information Technology
Department of Posts
(Estates Division)
Dated: 17th December, 2015
To
All Heads of Circles
Sub: Special Campaign under Swachh Bharat Mission from 18th to 27th December, 2015.
Respected Sir/ Madam,
As
you are aware, Government attaches great importance to the need for
improving cleanliness including in the Government offices. Under Swachh
Bharat Mission, Circles and field units have been undertaking Action
Plan for furthering the cause of cleanliness. Futher, special focus
needs to be given to the regular cleaning and proper upkeep of office
premises, review and weeding of records and disposal of obsolete and
unused items as well as repair, paining and sprucing of the street
letter box and Post Office signage etc. Digitization of records and
documents would also ensure tidy workspaces.
Now Government of India had decided to observe a Special Campaign in all Ministries/Departments from 18th to 27th December, 2015. Accordingly, a day to day Action Plan for the said Special Campaign is enclosed compliance.
The undersigned is directed to request you to forward Action Taken
Report (attached) from time to time as mentioned therein as per the
enclosed format including through email(estatesdnsbm@gmail.com). You are
also requested to forward some good photographs of before and after
action taken for uploading in social media and website.
Yours faithfully,
(K.R. Sharma)
Director(E & MM)
Encl: (i) Action Plan
Annexure-I
Special Campaign (18th to 27th December 2015)
S.No
|
Activity
|
Period
|
Action Taken report to be sent by date
|
1
|
Cleaning of all Post Offices(Departmental building)/RMS Units/Postal Staff College/Postal Training Centers(PTCs)/PSDs
|
18th to 27th December 2015
|
28th December 2015
|
2
|
Cleaning of Post Offices (Rented building) & RMS Offices
|
21st to 27thDecember 2015
|
28th December 2015
|
3
|
Cleaning of Branch Post Offices
|
18th to 27thDecember 2015
|
28th December 2015
|
4
|
Cleaning of Administrative Offices
|
19th, 20th & 23rd to 26th December 2015
|
28th December 2015
|
5
|
Cleaning of Postal Colonies
|
26th and 27thDecember 2015
|
28th December 2015
|
6
|
Review & Weeding of Old records and obsolete/unused items with due procedure
|
19th to 24thDecember 2015
|
28th December 2015
|
7
|
Meeting for raising awareness of their Postal Staff (Post offices/RMS/Administrative Offices.
|
19th , 20th December 2015 and 23rd to 26thDecember 2015
|
28th December 2015
|
8
|
Display banners on ‘Special Campaign’ in Circle Offices/Regional Offices/ Major Head Post offices & major RMS units.
|
By 20th December 2015
|
21st December 2015
|
9
|
Joint cleaning of the surroundings of Postal units with Local authorities.
|
23rd & 24thDecember 2015
|
28th December 2015
|
10
|
Digitization of POSB and PLI/RPLI records
|
18th to 27thDecember 2015
|
28th December 2015
|
11
|
Tree Plantation
|
19th, 20th & 24th, to 27th December 2015
|
28th December 2015
|
