Wednesday, December 02, 2015

CEPT FTP Access Error and Solution

CEPT FTP Access Problem

While access CEPT FTP it may shown the following error due to Network settings in browser.
The Connection was reset

Do the following to access FTP

  1. Open settings in Browser 
  2. Click on Advanced Tab > Network > Settings > Auto-detect proxy settings for the network.
  3. Click on Apply button to take effect.
Now we can access CEPT, FTP: ftp://cept.gov.in/

DB Analyser 09-06-2015 DbaPlus v8 dated 01.12.2015

DB Analyzer dated 09.06.2015 DBA Plus v8 dated 01/12/2015

DB Analyser revised dated 01 dec 2015 released by DMCC Chennai. The same should be updated before doing CBS migration.


Expected DA Jan 2016 : AICPIN for the month of October 2015

Consumer Price Index for Industrial Workers (CPI-IW) – October,2015 The All-India CPI-IW for October, 2015 increased by 3 points and pegged at 269 (two hundred and sixty nine).

No. 5/1/2015- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

CLEREMONV, SHIMLA-171004
DATED : 30th October, 2015

Press Release
Consumer Price Index for Industrial Workers (CPI-IW) – September, 2015
The All-India CPI-IW for September, 2015 increased by 2 points and pegged at 266 (two hundred and sixty six). On 1-month percentage change, it increased by (+) 0.76 per cent between August and September, 2015 which was static between the same two months a year ago.

The maximum upward pressure to the change in current index came from Food group contributing (+) 1.78 percentage points to the total change. At item level, Arhar Dal, Masur Dal, Moong Dal, Urd Dal, Mustard Oil, Onion, Cauliflower, Green Coriander Leaves, Potato, Tea (Readymade), Sugar, Electricity Charges, Private Tuition Fee, Flower/Flower Garlands, etc. are responsible for the increase in index. However, this increase was restricted by Wheat, Fish Fresh, Poultry (Chicken), Eggs (Hen), Apple, Coconut, Tomato, Petrol, Washing Soap, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 5.14 per cent for September, 2015 as compared to 4.35 per cent for the previous month and 6.30 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 5.71 per cent against 3.55 per cent of the previous month and 6.46 per cent during the corresponding month of the previous year.

At centre level, Chhindwara reported the highest increase of 10 points followed by Varanasi (9 points), Pune, Tripura, Jalpaiguri and Bhilwara (6 points each). Among others, 5 points rise was observed in 5 centres, 4 points in 7 centres, 3 points in 8 centres, 2 points in 16 centres and 1.point in 19 centres. On the contrary, Goa recorded a maximum decrease of 4 points followed by Ernakulam 3 points. Among others, 2 points decrease was observed in 4 centres and 1 point in 2 centres. Rest of the 9 centres’ indices remained stationary.
The indices of 36 centres are above All India Index and other 42 centres’ indices are below national average.
The next issue of CPI-IW for the month of October, 2015 will be released on Monday, 30th November, 2015. The same will also be available on the office website www. labourbureau.gov. in.

(S. S. NEGI)
DEPUTY DIRECTOR GENERAL

Meeting of NJCA is scheduled to be held on 08.12.2015 to discuss 7th CPC issues

As all of you are aware that, the NJCA is going to meet on 8th December, 2015, in New Delhi to decide the future course of action and strategy.

It would be quite pertinent, if you kindly send us your valuable input, enabling us to include the same in the discussion and preparation of the memorandum, to be submitted to Government of India, seeking improvements in the VII CPC report.
No.AIRF/24(C) Dated: December 1, 2015
The General Secretaries,
All Affiliated Unions,

Dear Comrades,
Sub: Meeting of the NJCA – 8th December, 2015
Thank you very much for observing “Black Day” in a befitting manner on 27th November, 2015 all over the Indian Railways.

I hope, by now, all of you have gone through the report of the VII CPC.

As all of you are aware that, the NJCA is going to meet on 8th December, 2015, in New Delhi to decide the future course of action and strategy.

It would be quite pertinent, if you kindly send us your valuable input, enabling us to include the same in the discussion and preparation of the memorandum, to be submitted to Government of India, seeking improvements in the VII CPC report.

With fraternal greetings!

Govt Likely To Give Better Pay Package Than Seventh Pay Commission

New Delhi: This give a great pleasure to central government employees, with the government is likely to modify the pay package of its employees, they can expect a higher package from next year. The coming revised pay will be higher than what the Seventh Pay Commission recommended.
Arun Jaitley 02122015
Finance Minister Arun Jaitley

The Seventh Pay Commission increased 16 per cent pay hike, which is significantly lower than what the Sixth pay commission had recommended which was close to a 40 percent increase in salaries. The extent of increase is actually on the lower side of expectations.
The Seventh Pay Commission report for pay package hiking submitted to the Finance Minister Arun Jaitley on November 19. However, the central government employees are in for disappointment as the report has been proposed a 16 percent hike in pay package starting January 1, 2016.
We understand from sources of Finance Ministry that the average increase in basic pay for all government employees will be in the region of 20-24%. This is a very rough average because for low paid employees, the payback could increase by more than 26%.

We understand that minimum basic salary is likely to hike at least Rs 20,000 from Rs 18,000 recommended by the Seventh pay commission.
We also understand from sources, in good news for about 50 lakh central government employees, the the government is likely to approve doubling of existing rates of allowances and advances, which has been recommended for abolition by Seventh Pay Commission like risk allowance, small family allowance, festival advance, motor cycle advance.
It is also added that the central government employees at various levels have been complaining of the abolition of the above allowances and advances.
They also demanded to make up pay gap between employees and higher officers because in its report, the Seventh Pay Commission has recommended to increase the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8, while all pay panels from second to sixth made up pay gap from 1:41 to 1:12.
Source :TST

BhuvanPOI - Geo Tagging Android Application

Geo Tagging Android Application 

A mobile application to map your neighbourhood. This is ISRO initiative to build a Point of Interest database in India using crowd sourcing technique of Bhuvan Geo-Platform. The App has features to collect mobile device GPS data, take Photographs of the point of interest and capture attribute details of the location. The app has facility to send the collected data to Bhuvan Server either immediately or later.
   BhuvanPOI- screenshot
The app also have facility to edit attribute and delete collected observations saved for send later or unsent data-sets in the mobile device. Each observation is tagged with user profile which is mandatory information to start collecting data.

Awards for best performs in Atal Pension Yojana (CBS offices only)

Atal Pension Yojana - Awards (CBS offices only)



What is Atal Pension Yojana (APY) : All you need to know

It is a new initiative which was announced by the Finance Minister in his budget speech. Atal Pension Yojana or APY is a scheme for all those people of the unorganized sector, who wish to join the National Pension System and are not a member of any other social security scheme.

In simple words, it is focused for those people who work in private sector and wish to have a fixed amount of pension after their retirement. Under this scheme, a person can get a fixed pension of Rs. 1000/2000/3000/4000/5000 per month, at the age of 60 years. However, the amount depends on their own contribution which varies on the age of joining the scheme.

Benefits of Atal Pension Yojana:

It is the government who has taken the guarantee for giving benefits under this scheme. One of the most important part of this scheme is that, the central government will contribute 50% of the user’s contribution or Rs. 1000 per year for a period of 5 years.
This benefit of government’s contribution is limited to all those members only who will join the National Pension Scheme before 31st December 2015 and who are not income tax payers.

When will this scheme be launched?

It will be launched form 1st June 2015 and the existing members of the Swavalamban scheme would be automatically transferred to this scheme.


Who all are eligible for this scheme?


It is open to all bank account holders and who are not a member of any statutory social security scheme. The minimum age for becoming a part of this scheme is 18 years and maximum age is 40 years which means the minimum period of contribution by you under this scheme would be 20 years or more.

How much do you need to contribute to get your pension under this scheme?

There are five plans under this scheme. You can avail any of the plan as per your choice. Each plan offers different pension at different age and you will have to contribute different amount of money. The monthly pension will be received by the user and his spouse. The indicative return which needs to be given to the nominee of subscriber is also mentioned in the table. For example: If you wish to get a pension of Rs. 3000 per month and you are 30 years old, then you will need to contribute Rs. 347 per month for 30 years.

Standard Operating Procedure of Atal Pension Yojana

Standard Operating Procedure of Atal Pension Yojana (APY) through CBS Post Offices

1. General

Any individual or existing Swavalamban Yojana subscriber who has completed 18 Years of age and is below 40 Years of Age on the day of applying can open APY account in any authorized CBS Post Office. The contribution for APY will be debited every month (if opted for monthly) or the first month of a quarter (if opted for Qutrly.) or first month of the Half Year (if opted for Half Yearly) from the subscriber Savings Account based on the Standing Instruction provided by the subscriber in APY Subscriber Registration Form. Under the APY, the subscribers would receive the fixed pension from Rs. 1000 to Rs. 5000 per month (Rs. 1000, 2000, 3000, 4000 and 5000), at the age of 60 years, depending on their contributions. The contributions would vary as per the age of the subscriber on the day of joining APY and the pension amount opted by the subscriber. In addition, Government co-contribution (50% of the total contribution or Rs. 1,000/- per annum, whichever is lower) will be made available for 5 years, i.e., from the Financial year 2015-16 to 2019-20 for the subscribers who join the scheme up to 31st December, 2015 and who are not covered by any Statutory Social Security Schemes and are not Income Tax payers.

1.1 At Post Office Level, following activities are to be undertaken:

Acceptance of Subscriber Registration Application and issuance of acknowledgement.
Capturing of minimum registration details in APY Module.
Handle requests for the subscribers such as Subscriber Details Modification, Issuance of Transaction Statement to the subscriber (based on request received)
Resolve the grievances/queries of the subscribers, if any

1.2 At Nodal Office Level, following activities are to be undertaken:

Download of PRAN Library from CRA system and updating in APY Module
Preparation &Upload of Subscriber Registration details in the CRA system
Receiving Response File from CRA system for Subscriber Registration 
Upload Subscriber Contribution File (SCF) in the CRA system
Remit the contribution amount to the Trustee Bank as per the SCF uploaded in the CRA system
(For APY, Sansad Marg HO of Delhi Circle will be the Nodal Office)

2. Activities to be carried out at authorized CBS Post Offices.

2.1 CBS Post Offices are being registered as NLCC for accepting subscription to APY. In first phase, all CBS HOs are being registered and list of CBS HOs with their NLCC number has already been sent to circles over mail from Director CBS. This will be extended to CBS SOs and then BOs under CBS Hos and SOs in a phased manner. Therefore, any Savings Account standing at any CBS SO or HO will be eligible for subscribing in APY but registration can be accepted only at authorized CBS HOs having NLCC number. For the time being, Accounts standing at BOs attached to CBS HOs and SOs should not be accepted for APY. SOP for handling Accounts standing at BOs attached to CBS SOs and HOs will be circulated separately.

2.2 Any Postal Official (including GDS attached to any CBS HO or SO) can pursue either a depositor having Savings Account in any EDBO/SO/HO migrated to CBS Platform or any Indian Citizen who is ready to open a Savings Account in any such post office which is migrated to CBS, to fill Atal Pension Yojana (APY) Subscriber Registration Form to get Guaranteed Pension after attaining age of 60 Year by paying Monthly/quarterly/half Yearly contribution as given in the attached table. Any existing Swavalamban Yojana Subscriber can also apply for APY registration on the prescribed form for Swalamban Yojana Subscriber. GDS who have already enrolled for Swalamban Yojana and are in the age bracket of 18-40 years should be encouraged to join APY as there is no guaranteed Pension in Swavalamban Yojana but in APY, Pension if guaranteed. Already deposited amount in Swavalamban Yojana will be automatically transferred to APY PRAN Account.

2.3 It has to be ensured that the Savings Account holder or Indian Citizen who wants to open new savings account for this purpose has already completed 18 Years of Age but not yet completed 40 years of Age (as per Date of Birth mentioned in any of the KYC Documents showing date of birth). The Account Holder has the option to select Pension Amount of his/her choice between Rs.1000/-, 2000/-, 3000/-, 4000/- and 5000/- per month. Contribution amount (monthly/Qtrly/Half Yearly) can be seen from the attached table.

2.4 First Contribution amount (as per table) will be deducted from the Savings Account Balance on the day of successful registration. For, subsequent contribution, the Savings Account Holder should be pursued to maintain balance (minimum balance+ Contribution amount as per table) in his/her Savings Account on any working day of the month (if contribution is to be deducted monthly) or any working day of the first month of a quarter i.e January or April or July or October ( if contribution is to be deducted quarterly) or any working day of the first month of a Half Year i.e January or July (if contribution is to be deducted Half Yearly). If sufficient balance will not be available in Savings Account in the required month, penalty fee will (@Rs.1/- per Rs.100/- contribution per month) will be added to the amount of contribution be charged and deducted from the Savings Account.

2.5. Postal Official (including GDS) who collects APY Subscriber Registration Form has to ensure that the depositor is above 18 Years and below 40 Years of age and has filled all fields with * mark. The official will fill his/her own details in the Form at “ To be filled by the official who collects form” part of the form and sign to become eligible for incentive. Incentive will be payable only on the successful registration of the subscriber.

2.6 When any POSB Account Holder or new customer attends post office either directly or through any messenger, Counter PA has to very carefully examine the Subscriber Registration Form and see that all the mandatory fields are filled by the depositor/customer. If Form is received through a Postal Official who has already filled details for becoming eligible for incentive, the Counter PA or BPM has to countersign the Form with name, designation, office of posting and HO from where pay is drawn to become eligible for incentive of their part.

Download Application Forms of Atal Pension Yojana


eMO instructions - CEPT, Mysore

Click below link to view the latest instructions received from CEPT, Mysore regarding eMOs (problems regarding non receipt/non transmission of eMOs)

Check Parcel COD Article Status in Postman 7.9.3

Postman 7.9.3 - Parcel COD Tracking

In Latest version of Postman 7.9.3, Parcel COD Status tracking is introduced to know the status of COD article.

New Features added for COD Articles in Parcel Net

  • Request - Resend Parcel COD Booking data (Ctrl+R)
  • Parcel COD Disaster Verification (Ctrl+V)
  • Change COD Article Types (Ctrl+C)
  • Parcel COD Article Status (Newly added)
  • Parcel COD Received from SOs.(Newly added)

Parcel COD Article Status

Parcel COD article status option available in Postman supervisor-Tools and check the COD article status.


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Govt Likely To Hike Minimum Pay Rs 20,000; Not To Abolish Any Advance, Allowance

New Delhi: The government is likely to give minimum basic salary Rs 20,000 of central government employees while the Seventh pay commission recommended fixing the lowest at Rs 18,000 for the central government employees on its report which was submitted to Finance Minister Arun Jaitley on November 19 by Justice A K Mathur, who heads the seventh pay commission.

An official of Expenditure Department Cell For implementation of Pay Commission recommendations said the government wants to make up pay gap between employees and higher officers and to hike Basic salary at least Rs 20,000 from Rs 18,000 recommended by the Seventh pay commission,

The government has no intention to cut current allowances and advances of any employees. The government motto is betterment must be done by protecting the current advances and allowances.

The Seventh pay commission has recommended for abolition of various allowances and advances like risk allowance, small family allowance, festival advance, motor cycle advance, he added.

He also said the government may not suggest any curtailment of the allowances and advances being now enjoyed by the central government employees, and the gazette of the pay hike, which is coming within six months, also would not do it.

The central government employees at various levels have been complaining of the abolition of the various allowances and advances.

They also termed the Seventh Pay Commission report as a width pay gap discrimination between employees and higher officers because in its report, the Pay Commission has recommended to increase the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8

Every pay commissions made up pay gap between employees and higher officers from second Pay Commission 1:41 ratio to Sixth pay commission 1:12.

TST

7th Pay Commission pension, pay scales, MSP, MACP, more

7th Pay Commission pension, pay scales, MSP, MACP, more: Here are top 10 points to clear all doubts

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 Seventh 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.

Seventh Pay Commission Implementation Likely Mid-2016: Macquarie India

According to the finance minister, the implementation of the seventh pay commission will impact the fiscal deficit by 0.65% of GDP.

The seventh pay commission that has recommended a 23.5 per cent hike in salaries for central government employees may only get implemented by the middle of next year, according to Rakesh Arora, managing director and head of research, Macquarie India.
However, there is no certainty that it would happen even in the next six months, he said.
"And still there is no guarantee that it is going to be implemented in the next six months, it is still for the government to really consider.

"So what we are saying is from the timing it can happen by middle of 2016 and not be pushed out too late."
The sixth pay commission was delayed by 2.5-3 years, Mr Arora pointed out.
The seventh pay commission, headed by Justice AK Mathur, last month submitted its report to Finance Minister Arun Jaitley. The recommendations, once cleared by the Cabinet, will lead to a substantial hike in salaries of central government employees and pensioners with effect from January 1, 2016.
However, there are worries on the fiscal deficit front due to the seventh pay commission, he said.
The government will incur an additional expenditure of Rs 1.02 lakh crore to pay higher salaries and pensions recommended by the seventh Pay Commission. Of this, Rs 28,000 crore will go for salary hikes of railway employees.

According to the finance minister, the implementation of the seventh pay commission will impact the fiscal deficit by 0.65 per cent of GDP.

However, it will ensure more money in the hands of the people, Mr Arora said. The salary hikes are expected to boost sales of affordable homes and consumer durables, which in turn will drive demand in the economy.

The seventh pay commission proposes a 16 per cent hike in basic salaries of 47 lakh serving government employees, and a 63 per cent hike in allowances. As a result, the overall hike in salaries will be 23.55 per cent. This compares with the 35 per cent salary hike central government employees got on implementation of the sixth pay commission in 2008.

The minimum salary for central government employees has been fixed at Rs 18,000 per month by the seventh pay commission.

Dependent of deceased GDS on compassionate grounds - clarification

Scheme for engagement of a dependent of deceased GDS on compassionate grounds - clarification


Postal Board calls an urgent meeting with unions to discuss 7th CPC related issues on 08.12.2015

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.

DoP seeks comments from unions on 7th CPC recommendations before 07.12.2015

From 02.12.2015, only up to 10 years age girl can open SSA accounts

From 02.12.2015, only up to 10 years age girl can open SSA accounts. Please see the SB order 2/2015 dated 25.03.2015 for reference

7th Pay Commission will not put economy under burden – RBI Governor

RBI Governor Raghuram Rajan

MUMBAI: RBI Governor Raghuram Rajan today said the Seventh Pay Commission recommendations will not upset fiscal maths as additional expenditures will be offset by either surplus revenues or expenditure cuts.

In the fifth bi-monthly monetary policy review for 2015-16, the Reserve Bank said the implementation of the Pay Commission proposals, and its effect on wages and rents, would be factored in by the RBI in its future deliberations.

“In the broad sense, yes there is going to be additional expenditure, but that will be offset presumably by either additional revenues raising or cuts elsewhere so that the fiscal consolidation path is maintained,” Rajan said while addressing reporters after the monetary policy statement.

The 7th Pay Commission has recommended increase in remuneration of about one crore government employees and pensioners which is estimated to impose an additional burden of Rs 1.02 lakh crore on the exchequer in 2016-17.

The new pay scales, subject to acceptance by government, will come into effect from January 1, 2016.

Rajan said the government had anticipated the consequences of Pay Commission recommendations and hence the fiscal path is expected to be maintained.

“We don’t feel there will be a significant effect on aggregate demand provided you maintain the fiscal path. Of course, investment in some ways may be (of) higher quality than certain kind of spending and therefore one would hope that you would uncover space elsewhere for the public investment which we really need,” Rajan added.

In the monetary policy statement, RBI said the direct effect of Pay Commission implementation and its “effect on aggregate demand is likely to be offset by appropriate budgetary tightening as the government stays on the fiscal consolidation path”.

The government had unveiled a fiscal consolidation roadmap in 2015-16 Budget under which fiscal deficit was to be brought down to 3.9 per cent of GDP this fiscal, 3.5 per cent in 2016-17 and 3 per cent by 2017-18, respectively.
Fiscal deficit in 2014-15 was 4 per cent of GDP.
RBI Deputy Governor Urjit Patel said the increase in the House Rent Allowance of government employees post Pay panel award would get reflected in the retail inflation data.

“But that is a one time level change and unless there are wider externalizes, we will most likely look through that… The impact will be felt from April onwards for 6-8 months. You will see an index change, but that will likely be looked through by RBI,” Patel said.

Several rating agencies and brokerages have said that a proposed 23.6 per cent hike in salaries and pensions of government employees could hurt India’s finances.
Source: Economics Times

Daily Allowance in 7th Pay Commission

Daily allowance is meant to cover living expenses when employees travel out of their headquarters for work. Presently it is in the form of reimbursement of staying accommodation expenses, travelling charges (for travel within the city) and food bills, payable at the following rates:
For journeys on foot, undertaken in organizations like FSI, Survey of India, GSI, etc. for data collection purposes, an additional allowance of ₹7.5 per km travelled on foot shall be payable.

The existing dispensation is different for Railway employees who are paid a flat sum because they are currently not entitled to stay in any accommodation other than Railway rest houses. The lump-sum rates for Railway personnel are as follows:
Representations received regarding this allowance primarily deal with the reimbursement procedure, as it is claimed that getting hotel bills (in small towns) and food bills is not always practical. 

Analysis and Recommendations by 7th CPC

The Commission considered the present model of this allowance, followed both in Railways and in other ministries. It is proposed to adopt the best from both of them so that the administration of the allowance can be simplified. Accordingly the following is recommended: 

a) Reimbursement of staying accommodation charges
For levels 8 and below, the amount of claim (up to the ceiling) may be paid without production of vouchers against self-certified claim only. The self-certified claim should clearly indicate the period of stay, name of dwelling, etc. The ceiling for reimbursement will further rise by 25 percent whenever DA increases by 50 percent. Additionally, it is also provided that for stay in Class ‘X’ cities, the ceiling for all employees up to Level 8 would be ₹1,000 per day, but it will only be in the form of reimbursement upon production of relevant vouchers.

b) Reimbursement of travelling charges
Similar to Reimbursement of staying accommodation charges, for levels 8 and below, the claim (up to the ceiling) should be paid without production of vouchers against selfcertified claim only. The self-certified claim should clearly indicate the period of travel, vehicle number, etc. The ceiling for levels 11 and below will further rise by 25 percent whenever DA increases by 50 percent. The rate of allowance for foot journeys shall be enhanced from the current rate of ₹7.5 per km to ₹12 per km traveled on foot. This rate also shall further rise by 25 percent whenever DA increases by 50 percent.

c) There will be no separate reimbursement of food bills. Instead, the lump sum amount payable will be as per Table 1 below and, depending on the length of absence from headquarters, would be regulated as per Table 2 below. Since the concept of reimbursement has been done away with, no vouchers will be required. This methodology is in line with that followed by Indian Railways at present (with suitable enhancement of rates)
  i. Lump sum amount payable


All the above provisions will apply to Railway personnel also