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Thursday, March 12, 2015

LTC to Some Countries-(SAARC countries ) Lok Sabha Q&A



A proposal to provide Leave Travel Concession (LTC) to Government employees to visit some SAARC countries is in its initial stage of consideration. The details are yet to be finalized.
 
 
The purpose behind the proposal is to enhance people-to-people contact and bilateral ties in the SAARC region through increase in tourism in the region.
 
 
As per the Government’s order dated 26.09.2014, the Government has extended the facility of conversion of home town LTC to visit the states in the North East Region, Jammu & Kashmir and the UT of Andaman & Nicobar Islands for a period of two years up to 25.09.2016. This facility was first introduced in the year 2008.
 
 
Presently, no other proposal is under consideration for including more places under the conversion of Home Town LTC to anywhere in the country.
 
 
This was stated by the Minister of State for Personnel, Public Grievances and Pensions and Minister of State in Prime Minister’s office Dr. Jitendra Singh in a written reply to a question by Shri M. Raja Mohan Reddy in the Lok Sabha today

Tuesday, March 10, 2015

Govt may implement Seventh Pay Commission report from April 2016

The Seventh Pay Commission drafted in to make a new pay structure for the 30 lakh Central government employees would not be able to submit its report in August this year, the Commission is likely to seek extension till October.
Finance Minister Arun Jaitley
Finance Minister Arun Jaitley

The reports of Seventh Pay Commission will be implicated from April next year as Finance Minister Arun Jaitley said in the Parliament on February 27, “The 7th Pay Commission impact may have to be absorbed in 2016-17.”

Finance Minister Arun Jaitley said above statement in his pre-budget speech. His statement indicates that the government may implement Seventh Pay Commission report from April 2016.

The UPA government formed the Seventh Pay Commission on 28 February 2014 under chairman justice Ashok Kumar Mathur with a timeline of 18 months to make its recommendations. According to present position, the commission will take at least 20-24 months.

However, the Sixth Pay Commission had submitted its report within 18 months.

As a result of the recommendations of the Sixth Pay Commission, pay and allowances of the central government employees more than doubled as per Fourteenth Finance Commission estimates.
As such, the central government employees are expected to get 100 percent salary hike under the recommendations of the Seventh Pay Commission.

Issues like inflation, the government’s financial position and salary structure of government employees in other countries would also be considered as parts of pay panel recommendations.
The Fourteenth Finance Commission asked the pay panel to link the pay with productivity, which will be the biggest hurdle for central government employees to be got over to get salary hike.

It is interesting to note that the earlier governments never accepted to link the pay with productivity

Monday, March 9, 2015

Special Pay for Paramilitary Personnel at PAR with Army



As informed by Central Armed Police Forces (CAPFs) and Assam Rifles (AR), the detail of strength of CAPFs and AR is as under:


ForceAUTHORISED STRENGTH

 
GOsSOsORsTotal
Central Reserve Police Force4,99739,123259,415303,535
Border Security Force5,03434,341212,684252,059
Central Industrial Security Force1,50624,789115,047141,342
Indo-Tibetan Border Police2,09512,68074,66389,438
Sashatra Seema Bal2,06112,04477,12991,234
Assam Rifles1,2694,60360,54066,412
Total16,962127,580799,478944,020

 
A proposal for grant of Para Military Service Pay (PMSP) to Central Armed Police Force personnel at par with Army personnel has been referred to the 7th Central Pay Commission vide MHA O.M. dated 05.11.2014. The rate of Para Military Service Pay requested is @ Rs. 2,000/- per month to Personnel Below Officer Rank (PBOR) and Rs.6,000/- per month to officers upto Dy. Inspector General of Police rank, based on the rates of Military Service Pay. State Armed Police Forces are under the administrative control of State Governments. As such, present proposal does not include State Armed Police Forces.
 
This was stated by the Minister of State for Home Affairs, Shri Kiren Rijiju in a written reply to Shri A.U. Singh Deo in the Rajya Sabha today

Monday, March 2, 2015

Seventh Pay Commission will submit its report by October 2015.

After 14th Finance Commission, 7th pay panel’s report looms
Finance minister Arun Jaitley at a press conference after the 14th Finance Commission report. The Seventh Pay Commission will submit its report by October 2015.
 
 
New Delhi: After the recommendations of the Fourteenth Finance Commission (FFC) forced the government to reduce its plan expenditure in the 2015-16 budget, the Union finance ministry fears its revenues will remain constrained in 2016-17 as well since it has to absorb the recommendations of the Seventh Pay Commission (SPC) in that year.
The SPC will submit its report by October 2015.
 
“The 7th Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will also be spanning out in this period. Thus, in the medium-term framework, the fiscal position will continue to be stressed,” the finance ministry said in the macroeconomic framework statement laid before Parliament along with the budget on Saturday.
 
 
The government appointed the Seventh Pay Commission on 28 February 2014 under chairman justice Ashok Kumar Mathur with a timeline of 18 months to make its recommendations. Though the deadline for submitting the report ends in August this year, the SPC is likely to seek extension till October.
 
The Sixth Pay Commission which was constituted in October 2006 had submitted its report in March 2008.
 
As a result of the recommendations of the Sixth Pay Commission, pay and allowances of the Union government employees more than doubled between 2007-08 and 2011-12—from Rs.74,647 crore to Rs.166,792 crore, according to the Fourteenth Finance Commission estimates.
 
“As a ratio of GDP, it jumped from a little over 0.9% in 2007-08 to 1.2% in 2008-09 and about 1.4% in 2009-10 on account of both pay revision and payment of arrears. However, it moderated to little over 1% in 2012-13,” the Finance Commission said.
 
The recommendations of the Sixth Pay Commission were implemented by states with a delay mainly between 2009-10 and 2011-12, with “significant expenditure outgo” in arrears on both pay and pension counts, the FFC said.
 
The FFC said that while the finance ministry projects an increase in pension payments by 8.7% in 2015-16, a 30% increase is expected in 2016-17 on account of the impact of the Seventh Pay Commission, followed by an annual growth rate of 8% in subsequent years.
 
However, it maintained that given the variations across states and the lack of knowledge about the probable design and quantum of award of the Seventh Pay Commission, it is neither feasible, nor practicable, to arrive at any reasonable forecast of the impact of the pay revision on the Union government or the states. “Further, any attempt to fix a number in this regard, within the ambit of our recommendations, carries the unavoidable risk of raising undue expectations,” added the Finance Commission.
 
A senior Pay Commission official, speaking under condition of anonymity, said its recommendations will surely have significant impact on the revenues of the central government. “The 14th Finance Commission was at a disadvantage since it did not have the benefit of the recommendations of the Pay Commission unlike its predecessors,” he added.
 
N.R. Bhanumurthy, professor at the National Institute of Public Finance and Policy, said the FFC has tried to factor in the impact of the recommendations of the SPC on the central government expenses. “The FFC report shows the capital outlay of the central government will dip in 2016-17 to 1.4% of GDP from 1.64% a year ago due to the implementation of the Pay Commission recommendation before it starts rising to 2.9% of GDP by 2019-20,” he added.
 
The FFC said that all states had asked it to provide a cushion for the pay revision likely during the award period. The FFC advocated for a consultative mechanism between the centre and states, through a forum such as the Inter-State Council, to evolve a national policy for salaries and emoluments
.
The FFC also recommended that pay commissions be designated as Pay and Productivity Commissions, with a clear mandate to recommend measures to improve productivity of employees, in conjunction with pay revisions. “We recommend the linking of pay with productivity, with a simultaneous focus on technology, skills and incentives. We urge that, in future, additional remuneration be linked to increase in productivity,” it said.
 
The Pay Commission official quoted earlier said it has been mandated to recommend incentive schemes to reward excellence in productivity, performance and integrity, which it will do. “Though previous Pay Commissions have talked about linking pay with productivity, the earlier governments have not accepted such recommendations. Since this government has shown strong political will, we hope they will accept our recommendations,” he added.

EXPECTED DA FROM JULY 2015 WILL BE 6 or 7 %

          Month      CPI       DA          
Jan 2015   254    114.52
Feb. 2015.  253   115.6
  Mar 2015 254     116.68
  Apr 2015  256    117.69
     May 2015 258    118.70  
Jun 2015  261   119.78
Jul 2015 263   120.57
Aug 2015 264.   121.36
Sep 2015 266 122.30

                                               AICPIN data for July 2015

Consumer Price Index for Industrial Workers (CPI-IW) for July 2015 increased by two points and stands at 263.

                         Consumer Price Index for Industrial Workers (CPI-IW) – May, 2015
The All-India CPI-IW for May, 2015 increased by 2 points and pegged at 258 (two hundred and fifty eight). On 1-month percentage change, it increased by (+) 0.78 per cent between April, 2015 and May, 2015 when compared with the increase of (+) 0.83 per cent between the same two months a year ago.


   Consumer Price Index for Industrial Workers (CPI-IW) – April, 2015


The All-India CPI-IW for April, 2015 increased by 2 points and pegged at 256 (two hundred and fifty six). On 1-month percentage change, it increased by (+) 0.79 per cent between March, 2015 and April, 2015 when compared with the increase of (+) 1.26 per cent between the same two months a year ago.
Aicpin for the month of February 2015








Aicpin for the month of February 2015 No. 5/1/2015- CPI GOVERNMENT OF INDIA MINISTRY OF LABOUR & EMPLOYMENT LABOUR BUREAU `CLEREMONT, SHIMLA-171004 DATED: the 31st March, 2015 Press Release Consumer Price Index for Industrial Workers (CPI-IW) – February, 2015 The All-India CPI-IW for February, 2015 decreased by 1 point and pegged at 253
EXPECTED DA FROM JULY 2015

If the AICPIN rises by 1 point each month in the coming five months, then the DA for July 2015 shall be 6 %. If the AICPIN rises few month 2 points other month 1 points, then in July 2015, we can expect to get a raised DA of 7 %.
The DA that we are about to receive may be the last one that we will get during the 6th CPC period (i.e. during the past 10 years). This is because from Jan 2016, the 7th CPC is expected to be put in to effect,then 7th cpc da will be continue.
Click here for a calculation sheet to compute the Expected DA based on the 6th CPC.
Table 1
Month-YearB.Y. 2001=100Total of 12 Months12 Months Average% Increase over 115.763App. DADA %
Jan-152542980248.33132.57114.52
Feb-15255*2997249.75133.99115.74
Mar-15256*3014251.17135.4116.97
April-15257*3029252.42136.65118.05
May-15258*3043253.58137.82119.05
Jun-15259*3056254.67138.9119.99119
Note *Expected value Aicpin
Table 2
Month-YearB.Y. 2001=100Total of 12 Months12 Months Average% Increase over 115.763App. DADA %
Jan-152542980248.33132.57114.52
Feb-15255*2997249.75133.99115.74
Mar-15256*3014251.17135.4116.97
April-15258*3030252.5136.74118.12
May-15260*3046253.83138.07119.27
Jun-15262*3062255.17139.4120.42120

Aicpin for the month of January 2015
No. 5/1/2015- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU
`CLEREMONT’, SHIMLA-171004
DATED: the 27 th February, 2015
Press Release
Consumer Price Index for Industrial Workers (CPI-IW) – January, 2015
The All-India CPI-IW for January, 2015 increased by 1 point and pegged at 254 (two hundred and fifty four). On 1-month percentage change, it increased by 0.40 per cent between December, 2014 and January, 2015 when compared with the decrease of (-) 0.84 per cent between the same two months a year ago.