Sunday, December 06, 2015

House Rent Allowance (HRA)-7th Pay Commission Analysis and Recommendations

Presently, HRA is payable at the following rates:
Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 Iakh and aboveX30
50-5 IakhY20
Below 5 lakhZ10
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).

5 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).

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 to30 percent, 20 percent and 10 percent when DA crosses 100 percent.

Commission recommends that HRA

Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 Iakh and aboveX24
50-5 IakhY16
Below 5 lakhZ8

HRA when DA crosses 50%

Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 Iakh and aboveX27
50-5 IakhY18
Below 5 lakhZ9

HRA when DA crosses 100%

Population of
Cities/Towns
Class of
Cities/Towns
HRA rates as % of Basic Pay
(including MSP and NPA)
50 Iakh and aboveX30
50-5 IakhY20
Below 5 lakhZ10

Pay Fixation in the New 7thPay Structure

The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57. The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay. If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. A couple of examples are detailed below to make the process amply clear.

The pay in the new pay matrix is to be fixed in the following manner:

Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’.

Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.

Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level.

Example I

i. For example an employee H is presently drawing Basic Pay of ₹55,040 (Pay in the Pay Band ₹46340 + Grade Pay ₹8700 = ₹55040). After multiplying ₹55,040 with 2.57, a figure of ₹1,41,452.80 is arrived at. This is rounded off to ₹1,41,453.

ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.

iii. In the column for level 13, the figure closest to ₹1,41,453 is ₹1,41,600.

iv. Hence the pay of employee H will be fixed at ₹1,41,600 in level 13 in the new pay matrix as shown below:
GP 8700GP 8900GP 10000
Level 13Level 13ALevel 14
118500131100144200
122100135000148500
125800139100153000
129600143300157600
133500147600162300
137500152000167200
141600156600172200
145800161300177400
150200166100182700
As part of its recommendations if Commission has recommended any upgradation or downgrade in the level of a particular post, the person would be placed in the level corresponding to the newly recommended grade pay.

Example II

i. Take the case of an employee T in GP 4200, drawing pay of ₹20,000 in PB-2. The Basic Pay is ₹24,200 (20,000+4200). If there was to be no change in T’s level the pay fixation would have been as explained in Example I above. After multiplying by 2.57, the amount fetched viz., ₹62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at ₹62,200.

ii. However, assuming that the Commission has recommended that the post occupied by T should be placed one level higher in GP 4600. T’s basic pay would then be ₹24,600 (20000 + 4600). Multiplying this by 2.57 would fetch ₹63,222.

iii. This value would have to be located in the matrix in Level 7 (the upgraded level of T).

iv. In the column for Level 7 ₹63,222 lies between 62200 and 64100. Accordingly, the pay of T will be fixed in Level 7 at ₹64,100.

7th Pay Commission Report Likely To Be Implemented In J&K By Apr-May

There is good news for employees in Jammu and Kashmir as the government is planning to implement the 7th Pay Commission report by April-May next year. Right now the state government is keeping an eye on the development taking place in Delhi with regard to the implementation of the report. The move aims to placate around 5 lakh government employees in the state as government is the largest employer, and job giver in Jammu and Kashmir. The government in fact is waiting that once green signal comes for central government employees there would be no delay in implementing the report in Jammu and Kashmir. 

A meeting at the highest level headed no less than the chief minister has already discussed the proposal of implementing the recommendations of the pay panel. The move aims to mollify a large section of population in the state as atleast one member of a majority of households is directly or indirectly recruited by the state government. The political dispensation feels that offering pay hike will pacify, and neutralize the anti-incumbency factor which has already starting taking shape against the coalition government. The 7th pay commission offers around 23 per cent hike in salaries and DA of central government employees and has also fixed 18,000 as minimum salary of the employees hired by the state.
Source : Media Report

Tender for AMC for Pass book printers available in various POs

Tender for AMC for Pass book printers available in various POs under the control of Southern Region, Tamilnadu Circle

Tender ID : 2015_DOP_58441_1
Tender Ref : tech/pb printer/e_tender_amc/2014
Organisation : Department of Posts||Tamil Nadu Circle,Dept.of Posts||PMG,Southern Region,Madurai,POST || Technology Sec.,Southern Region,Madurai,POST

AMC for pass book printers under Southern Region Madurai Tamilnadu Circle

Annual Maintenance Contract work for Passbook printers available in various Post Offices under the control of Southern Region covering Dindigul, Kanniyakumari, Karaikudi, Kovilpatti, Madurai, Ramanathapuram,Sivaganga, Theni, Tirunelveli, Tuticorin, V 

To View Tender Details by Enter using below link then reach us using tender ID

One Rank One Pension (OROP)

Government order on One Rank One Pension (OROP) has been issued on 07.11.2015. 

Salient features of the OROP are as follows: 

  1. Pension of the past pensioners would be re-fixed on the basis of pension of retirees of calendar year 2013 and the benefit will be effective with effect from 01.07.2014. 
  2. Pension will be re-fixed for all pensioners on the basis of the average of minimum and maximum pension of personnel retired in 2013 in the same rank and with the same length of service. 
  3. Pension for those drawing above the average shall be protected. 
  4. Arrears will be paid in four equal half yearly instalments. However, all the family pensioners including those in receipt of Special / Liberalized family pension and Gallantry award winners shall be paid arrears in one instalment. 
  5. In future, the pension would be re-fixed every 5 years. 
Certain ex-servicemen associations have been demanding for changes in methodology for fixation of pension, periodicity of its revision, coverage of future PMR cases etc. The Government has decided to appoint a Judicial Committee to look into anomalies, if any, arising out of implementation of OROP. 

Personnel who opt to get discharged henceforth on their own request under Rule 13(3) 1(i)(b), 13(3)1(iv) or Rule 16B of the Army Rule 1954 or equivalent Navy or Air Force Rules will not be entitled to the benefits of OROP. It will be effective prospectively and in future, the pension would be re-fixed every 5 years.

Clarification on Media Reports on Gold Monetization Scheme


Some sections of the media have reported that Government will directly intervene to monetize the gold held by charitable, religious and other institutions. It is clarified that this is complete misinformation. The Gold Monetization Scheme is entirely voluntary and it is for individuals, institutions and others to take their own decision to monetize the gold held by them under the Scheme. The objective of the Scheme is to monetize the idle gold held within the country and promote financial savings. A good part of the monetized gold will also be made available to meet the domestic requirement of gold. This will help in reducing our gold imports and save foreign exchange and deal with the problem of Current Account Deficit. 

It is once again reiterated that the Gold Monetization Scheme is purely voluntary. It is expected that individuals and institutions will consider the merits and advantages of the Scheme and participate in it.