Monday, December 21, 2015

7th Pay Commission Report – failed to impress employees know why?

On November 19, the 7th Central Pay Commission submitted its report on the salaries, pensions, and benefits for more than 50 lakh Central Government employees.

Within hours, the websites and news media began to give their elaborate interpretations and opinions about the recommendations. Mr. Krishnan, the secretary of Confederation of Central Government Employees & Workers, on his website, gave a scathing review of the report, listing out all the drawbacks and disappointments. This was followed by similar opinions from almost all the other employees associations.

Employees’ expectations versus disappointments

Minimum wages : NCJCM demanded that the minimum wages be raised to Rs.26,000. Reports said earlier that the numbers range from Rs.24,000 to 21,000. But, the Pay Commission had fixed it as Rs.18,000. Criticism about the minimum wages that are going to be enforced for the next ten years is the great disappointment.

House Rent Allowance : House Rent Allowances have been brought down from the current 10, 20 and 30 percent to eight, 16, and 24 percent. NC JCM had asked for an increase to 20, 40, and 60 percent. Popular opinion says that even if the idea of increasing HRA was unacceptable, the commission shouldn’t have to reduce it.

Date of increment: There was disappointment because the report didn’t say anything about adding the date of increments, such as January 1 and July 1.

Date of implementation : NC JCM demanded that the new recommendations be implemented with effect from 01.01.2014, but the commission has prescribed 01.01.2016 as the date of implementation.

Multiplication Factor : The 6th Pay Commission recommended that the Grade Pay be calculated at 40 percent from the higher pay band and a Multiplication Factor of 1.86 be used on it. The 7th Pay Commission had recommended only 2.57 and has completely removed the Grade Pay structure. The NC JCM had insisted that it be fixed at 3.7.

Promotion and Increment : The Pay Matrix table was prepared only with 3 percent increment. Everybody expected in the benefit of promotion, there will be two increments or a 5 percent hike. The 7th Pay Commission instead made no changes to this. The employees are also disappointed that promotions are not likely to bring in a noticeable financial improvement. The Grade Pay hike, which was implemented in the 6th Pay Commission, has now been removed.

MACP Promotion Scheme : Four or five promotions were expected under the much-awaited MACP scheme. But the new report recommends the same 10, 20, and 30 years routine, with stricter guidelines for promotions. This could lead to complications for those who weren’t given any promotions for more than 10 years, to get one through the MACP upgradation.

Allowances and advances : The Pay Commission has recommended the abolishing of about 52 allowances, including the “Family Planning Allowances.” It has also recommended the abolishing of all kinds of advances, including the LTC advance.

And also disappointed in the recommendations of New Pension Scheme, LTC, Transport Allowance, Children Education Allowance, CGEGIS, Fixed Medical Allowance and GDS Issues.

Govt mulling hike minimum pay, doubling allowances and advances

The government is also considering doubling of existing rates of such allowances and advances, which has been recommended for abolition by the Seventh Pay Commission.

“The Central government is also positively considering for 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,” the sources said.
Mentioning that the Implementation cell of the Seventh pay commission recommendation in Finance Ministry, headed by Joint Secretary R K Chaturvedi, is examining to hike the minimum pay as the pay commission increased the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8.
The Cell is also processing for doubling allowances and advances being enjoyed by various cadres of central government employees, they added.

The Seventh Pay Commission was set up by the UPA government in February 2014, The Commission headed by Justice A K Mathur submitted its 900-page final report to Finance Minister Arun Jaitley on February 19, recommending 23.55 per cent hike in salaries and allowances of Central government employees and pensioners.

The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

The Seventh pay commission recommended fixing the highest basic salary at Rs 250,000 and the lowest at Rs 18,000and its increased the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8. The Pay Commission also recommended for abolition of allowances and advances like risk allowance, small family allowance, festival advance, motor cycle advance.

Trade Unions and central government employees at various levels have been complaining of the pay gap and abolition of risk allowance, small family allowance, festival advance, motor cycle advance.

However, the Pay Commission recommended for introduction of a health insurance insurance scheme for staff and pensioners and doubling the gratuity ceiling to Rs 20 lakh.

After receiving the pay Commission report, the Finance Ministry has set up a cell in the Expenditure Department headed by joint secretary R K Chaturvedi to implement the recommendations of the Seventh Pay Commission.

The cell will give all the inputs to the group of secretaries of revision pay panel report headed by cabinet secretary for examining the report before cabinet nod.
The Centre has expressed confidence that the implementation of the recommendation will not lead to a breach in the fiscal deficit targets.
The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and pensioners, often these are adopted by states after some modifications. However, the Seventh Pay Commission suggested to discontinue the practice of appointing pay commissions in future.

Change of closed holiday for "MILAD-UN- NABI" from 23.12.2015 to 24.12.2015 TN Circle

CHANGE OF CLOSED HOLIDAY FOR "MILAD - E - NABI" FROM 23.12.2015 TO 24.12.2015 - ORDER ISSUED BY CGEWCC, TAMILNADU 


Is attendance compulsory for Central Government employees on the implementation day (01.01.2016) of the 7th CPC recommendations?

Is attendance compulsory for Central Government employees on the implementation day (01.01.2016) of the 7th Pay Commission recommendations?

Central Government employees are wondering if there will be any consequences of taking leave on January 1, 2016, the date of implementation of the 7th Pay Commission report.

The recommendations of the 7th Pay Commission regarding the salaries and perks for the Central Government employees will come into effect from January 1, 2016 onwards. Many are curious to find out the connection between the date of implementation of 7th CPC and reporting to work on the day.

Normally, the date of joining work, date of getting the promotion, date of receiving the increments, transfer date, and retirement dates are very important for a Central Government employee. In the average service period of a Central Government employee, he/she is likely to witness two or three Pay Commissions. Keeping this in mind, it would be better to not absent oneself on January 1, 2016.

“All Central Government employees are advised to report to work on January 1, 2016 (Friday).”

“This is especially so for those who are on long leave. It will help them avoid a lot of problems in future.”

“If 01.01.2016 is announced as a holiday, it will be better to report to work the next day.”

If the recommendations of the 7th Pay Commission are going to be implemented from 01.01.2016 onwards, then the employees will have to come to work that day to accept these recommendations. If he/she is absent on the day, then the day they return to work will be treated as the day they had accepted the new recommendations.

If an employee not to report on the date of implementation of recommendations of new pay commission, this could delay the benefits of the 7th Pay Commission. This could also cause financial losses too due to pay revision as per the recommendations of new pay commission.

According to rules, in order to qualify for the annual increment, an employee has completed 6 months or more in the revised pay structure as per 6th CPC, as on 1st July. A delay of even a single day could deny you an increment, as per the rule.

Grant-in-aid for the provision of amenities or recreational or welfare facilities

Grant-in-aid for the provision of amenities or recreational or welfare facilities to the staff of the Central Govt.- regarding

Strengthening establishment of Single Handed Branch Post Offices

Strengthening establishment of Single Handed Branch Post Offices

Review of existing provisions for filling up of vacant GDS posts

Review of existing provisions for filling up of vacant GDS posts - Other than GDSBPM

Scheme for engagement of a dependent of deceased casual labourer engaged on or before 01.09.1993 on compassionate grounds to Gramin Dak Sevak Post

Scheme for engagement of a dependent of deceased casual labourer engaged on or before 01.09.1993 on compassionate grounds to Gramin Dak Sevak Post

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

Scheme for engagement of a dependent of deceased GDS on compassionate grounds - review of existing point based system of assessing indigence


Calling for Application of volunteer from Postal / Sorting Assitant cadre to work in PTC

Calling for Application of volunteer from Postal / Sorting Assistant cadre to work in PTC, Darbhanga as Office Assistant

Transfers/Postings in the Senior Administrative Grade(SAG) of the Indian Postal Service

Transfers/Postings in the Senior Administrative Grade(SAG) of the Indian Postal Service, Group A


Promotion and allotment of a Postal Service, Group 'B' officer

Promotion and allotment of a Postal Service, Group 'B'  to  Junior  Time  Scale (JTS)  of  Indian  Postal service,  Group'A'(Pay  Band-3:  Rs.  15500-39100+GP:  Rs.  5400/-



CSV Upload File-Service Tax related changes in McCamish

  • The last three columns of existing csv file will be utilized for updating records related to service tax as follows:
  1. First Year Tax : applicable for premiums collected in the first policy year
  2. Renewal Year Tax: applicable for premiums collected in the subsequent policy years
  3. Tax Type: 1 for first year tax and 2 for renewal year tax and 3 when S. tax is for first year as well as renewal year.
  • For Bulk Upload, service tax/sales tax amount should be calculated and validated as per issue circle and rate mentioned as per the upload date.
  • If the amount of service tax is incorrect, then error message will be displayed – Service tax amount incorrect. 
  • If tax type 1 is updated with renewal tax and tax type 2 is updated with first year tax, then error message will be displayed – Tax Type incorrect.

Example 1 :

If premium is collected for first year, then column -‘tax type’ to be updated as 1 and renewal year tax column will be updated as 0. S.tax to be calculated @3.50 % and updated in the column ‘First Year Tax’.  
Policy Issue date – 1-APR-2015
Paid to date-31.08.2015
Frequency- Monthly
Monthly Premium - 164
Premium due from 01.09.2015 till date
S.tax Calculation: Monthly premium * no. of months i.e. 164*4=656
                                S.tax: 656*3.50%=23
First_Year_Tax
Renewal_Year_Tax
Tax_Type
23
0
1

 Example 2 :

If premium is collected for subsequent year, then column-‘tax type’ to be updated as 2 and first year tax column will be updated as 0. S.tax to be calculated @1.75 % and updated in the column ‘Renewal Year Tax’.
Policy Issue date – 1-SEP-2014
Paid to date-31.10.2015
Frequency- Monthly
Monthly Premium - 164
Premium due from 01.11.2015 till date
S.tax Calculation: Monthly premium * no. of months i.e. 164*2=328
                                S.tax: 656*1.75%=6
First_Year_Tax
Renewal_Year_Tax
Tax_Type
0
6
2

 Example 3 :

If premium is collected for first year as well as subsequent year, then column-‘tax type’ to be updated as 3 and S.tax to be calculated @ 3.50% for first year and @1.75 % for renewal year. First year tax will be updated in ‘first year tax’ column and renewal year tax will be calculated in ‘renewal Year Tax’ column.
Policy Issue date – 1-SEP-2014
Paid to date-30.06.2015
Frequency- Monthly
Monthly Premium - 164
Premium due from 01.07.2015 till date
S.tax Calculation: First year Monthly premium * no. of months i.e. 164*2=328
                               First year S.tax: 328*3.50%=11
                               Second year monthly premium * no. of months i.e. 164*4=656
                               Renewal Year S.Tax : 656*1.75%=6
                                 First_Year_Tax
Renewal_Year_Tax
Tax_Type
11
6
3

Example 4  :

The total_receipt column in the file should include the service tax component as well.
If the total receipt amount does not include service tax, then error message will be triggered as – Total receipt amount does not include service tax.
For e.g. If First year premium due is 328 and s.tax calculated on it is 11/-, then Total receipt column will have the total of Premium and service tax i.e. 328+11=339/-.
PREM_AMNT
TOTAL_RECEIPT
First_Year_Tax
Renewal_Year_Tax
Tax_Type
328
339
11
0
1
1.    

Example 5

Value in this tax column needs to be saved in Data base without any calculations involved if uploaded through Meghdoot Upload. The Meghdoot / Bulk upload batch will do validations on the uploaded file to check if any excess premium is uploaded.