Thursday, January 19, 2017


Important Recommendations made by GDS Committee

Dear Comrades,
For the preliminary information to all our GDS Comrades & well-wishers, a gist of recommendations have been extracted from the GDS Committee Report submitted by Shri Kamalesh Chandra.

Categories of GDS:

Present Nomenclature Category
BRANCH POST MASTER All Branch Post Masters

Viability of GDS Post Offices:

  1. New norms for calculation of GDS Pos are recommended.
  2. Further Categorization of GDS POs based on proportion of Revenue / Expenditure
Category of GDS PO Revenue Norm
Urban & Rural (Normal) 100% of its expenditure
Rural (special) 50% of its expenditure

Category Colour Proportion of Revenue to expenditure
A Green 100% or more of prescribed form
B Orange 75% to 99% of prescribed form
C Pink 50% to 74.99% of prescribed form
D Red Less than 50% of prescribed form

Workload assessment:

In place of point system, the Committee recommends the new wage payment system. The new system linked to revenue generation and not to work load.

Rural Business Development and Marketing:

The Committee Recommended many items for successful realization of rural business potentials.

Committee recommends to improve the accessibility, visibility and infrastructure of GDS POs.

  • PO are with 10’ X 10’ dimensions in ground floor.
  • Building owned by Gram Panchayat
  • Building owned by Central Govt or State Govt. ie.,schools or offices BPM’s own house
  • Proper rented accommodation in a busy place of the village
  • Building owned by NGOs.
With all furniture and power supply.

Legal status of GDS:

  • The Committee observed that the matter is sub judice.
  • The Department should take suitable steps to increase security of job, prevent exploitation and increase income of GDSs so that they feel secure and live happily with in the GDS system and with the existing legal status.
  • Terms and conditions of engagement.
  • The Committee recommends changes in Rule-3A.
  • Introduce voluntary discharge scheme on willing to leave the post before 65 years
  • Discharge from the service on the last day of the month.
  • Relaxation on limited transfer facility.
Recommendations on wage structure and fixation of wages.
Committee recommends raising of minimum duty from 3 hours to 4 hours of all GDSs
Comparison : BPM = Postman
Asst. BPM & Dak Sevak = MTS
Minimum wage fixed at :
Rs.10,000- for 4 hours & Rs.12,000- for five hours. (Level-I)
Rs.12,000- for 5 hours & Rs.14,500- for five hours (Level-2)
Annual increase @ 3% on 1st January or 1st July
Wage matrix & Wage Level Table & Arrears calculation Table are given in detail.


  1. Dearness Allowance – no change
  2. % of DA with regular employees – no change
  3. Increased rate of DA – no change
  4. Recommended allowances :
  5. Composite Allowance
  6. Cash Conveyance Allowance
  7. Combined Duty Allowance
  8. Children Education Allowance
  9. Revenue linked Allowance for eligible BPMs
  10. Risk & hardship allowance

Allowances to be withdrawn:

  1. Office Maintenance Allowance
  2. Fixed Stationery Allowance
  3. Boat Allowance
  4. Cycle Maintenance Allowance
  5. Uttarakhand Allowance
  6. Split Duty Allowance.

Composite Allowance Includes:

Rent for housing GDS PO, Rent for Accommodation, washing-repairs-maintenance of premises, furniture, stationery charges, electricity usage charges for office, Mobile / Telephone usage charges, Boat Allowance/ CMA/ TA, Hospitality charges for drinking water, other incidental charges.

Performance Related Incentive

  • Revenue linked allowance along with the present system of incentives with automatic payment at the end of each month.

Ex-gratia Bonus:

Dept should re-examine the formula for payment of bonus and ex gratia bonus with reference to the share of revenue generated by the departmental as well as GDS POs.
Methods of engagement

  • Method of selection : on line method engagement should be introduced.
  • Recruiting Authority : appended to the GDS (Conduct & Engagement) Rules, 2011
  • Qualification :SSC/SSLC from State Board/CBSE/ICSE with certificate course or diploma course in IT
  • Knowledge of local language.
  • Maintenance of Reservation roster at divisional level.
  • Stop the security in the form of FG bonds, introduce 5 year TD or NSC as security.

Career Progression

There is need to increase the Direct Recuitment quota of GDS in Postman & Mail Guard because of large working strength of GDS and to provide them with better opportunities for getting into departmental posts.

Introduce a guaranteed special increase in wages after 12, 24 & 36 years of service with two annual increases.

Designation of GDSs should be changed after each financial upgradation.

Leave & substitute arrangement:

  • Paid leave should be renamed as ordinary leave and enhanced from 20 to 30 days in a year.
  • Introduce Encashment of Ordinary leave.
  • Introduce ‘emergency leave’ for 5 days in a calendar year, but no carry forward.
  • No full time substitute will be engaged.
  • Women GDS – 26 weeks of maternity leave and paid from salary head.
  • Paternity leave for 7 days.

Disciplinary Rules:

Department should add a new punishment of ‘compulsory discharge from the service’ in the list “major penalties’ and the content of Rule-9 of GDS (Conduct & Engagement)Rules 2011.

Social Security Schemes:

  • Severance Amount : @ Rs.4,000 from 01-01-2016 for every completed year of service subject to maximum of Rs.1,50,000-.
  • Service Discharge Benefit Scheme (SDBS):
  • GDS contribution should be revised as minimum of 3% and maximum of 10% of the basic wage per month.
  • Department contribution should be fixed as 3% of the basic wage.
  • Bring the GDS under the purview of Gratuity Act with an upper limit of Rs.5,00,000-
  • Group Insurance Scheme : enhance the rate of monthly subscription by Rs.500 per month with insurance coverage of Rs.5,00,000-.

Welfare Schemes:

  • GDS CWF subscription should be enhanced from Rs.20- to Rs.100- pm.
  • Department grant should be enhanced from Rs.100- to Rs.300- PA.
  • Point system should not be applied to the compassionate appointment of dependents of GDS.
  • Photo identity cards to all GDS with free of cost.

GDS Committee Report – Pay Scale, Fitment Factor and Arrears

Pay scales recommended by the GDS Committee :

Authority: GDS Committee Report

Gramin Dak Sevak Committee Report Major Recommendations are Summarised

The Committee’s major recommendations are summarised below

The Old system of payment of time related continuity Allowance (TRCA) is dispensed with and replaced with a new wage payment system. Under the new wage payment system, 11 TRCA slabs are subsumed into 3 wage scales with two levels each for BPMs and for other than BPMs. One wage scale would be common for both the categories of GDSs.

New Wage Scales

1. 10,000 – 24,470 (Other than BPM Level 1)
2. 12,000 – 29,380 (Other than BPM Level 2 & BPM Level 1)
3. 14,500 – 35,480 (BPM Level 2)
  • The minimum working hours of GDS Post Offices and GDS is increased to 4 hours from 3 hours.
  • The new working hours for GDS Post Offices will be 4 hours and 5 hours only.
  • The Level 1 GDS Post Offices/GDSs will have 4 hours as working hours and Level – 2 will have 5 hours as working hours.
  • The Point System for assessment of workload of BPMs has been abolished.
  • The new wage payment system is linked to revenue generation of GDS Post Offices. Under the new system, there will be no increase in wagess of BPMs from Level-1 to Level-2 on the basis of workload but the same will be increased based on achievement of prescribed revenue norms which is fixed at 100% for normal areas and 50% for special areas which presently have 15% anticipated income norms.
  • The GDS Post Offices not achieving the prescribed revenue norm within the given working hours will have to open GDS post offices for minimum of additional 30 minutes beyond the prescribed working hours.
  • The GDSs BPMs will be paid Revenue Linked Allowance @10% beyond Level 2 wage scale if they will be successful in achieving revenue beyond prescribed norms
  • The GDS Post Offices has been categorized into A,B,C and D categories based on the revenue generation norms. The GDS Post Office in A category will achieve 100% revenue. The Committee has recommended a set of actions for each category of GDS Post Offices.
  • The six approved categories of GDS are subsumed into two categories only. One category will be Branch Post Master and all other 5 categories of GDSs are subsumed into one multi tasking category.
  • The job profile of Multi Tasking GDS is expanded to include work such as Business Development and Marketing etc. Their jobs will no more be confined to their old designations. The Assistant BPM will assist BPMs for increasing revenue generation.
  • The GDSs working in the GDS Post Offices will be known as Assistant Branch Post Master (ABPMs) and those working in the Department Post Offices will be known as Dak Sevak (DS).
  • The minimum wage has been increased to Rs.10000/- per month and maximum to Rs.35,480/- per month.
  • The rate of annual increase is recommended as 3%.
  • A composite Allowance comprising of support for hiring accommodation for GDS Post Offices as well as mandatory residence, office maintenance, mobile and electricity usage charges etc. has been introduced for the first time.
  • Children Education Allowance @ Rs.6,000/- per Child per annum has been introducted for GDS.
  • Risk & Hardship Allowance @ Rs.500/- per month for GDSs working in the special areas has also been introduced.
  • A Financial upgradation has been introduced at 12 Years, 24 years and 36 Years of services in form of two advance additional annual increases.
  • The ceiling of ex-gratia gratuity has been increased from Rs.60,000 to Rs.5,00,000/-
  • The GDS contribution for service Discharge Benefit Scheme (SDBS) should be enhanced maximum up to 10% and minimum up to 3% of the basic wage per month, whereas the Department should contribute a fixed contribution of 3% of the basic wage of the GDSs.
  • The coverage of GDS Group Insurance Scheme has been enhanced from Rs.50,000/0 to Rs.5,00,000/-.
  • The contribution of Department in Circle Welfare Fund (CWF) has been increased from Rs.100/- per annum to Rs.300/- per annum.
  • The Scope of CWF is extended to cover immediate family members such as spouse; daughters, sons and dependent daughters in law in the scheme.
  • The Committee also recommended 10% hike in the prescribed limits of financial grants and assistance in the Circle Welfare Fund.
  • The Committee has recommended addition of Rs.10,000/- for purchase of Tablet/Mobile from the Circle Welfare Fund in the head ” Financial Assistance from Fund by way of loans with lower rate of interest (5%)”.
  • Provision of 26 weeks of Maternity Leave for women GDSs has been recommended.
  • The wages for the entire period of Maternity Leave is recommended to be paid from salary head from where wages of GDSs are paid.
  • The Committee has also recommended one week of Paternity Leave.
  • The Committee has recommended 5 days of emergency leave per annum
  • Leave accumulation and encashment facility up to 180 days has been introduced.
  • Online system of engagement has been recommended.
  • The maximum age limit of 50 years for Direct Recruitment of GDSs has been abolished.
  • Minimum one year of GDS service will now be required for GDSs for Direct Recruitment into Departmental cadres such as MTS/Postman/Mail Guard.
  • Alternate livelihood condition for engagement of GDSs has been relaxed.
  • Voluntary Discharge Scheme has been recommended.
  • The Discharge age has been retained at 65 years.
  • The Limited Transfer Facility has been relaxed from 1 time to 3 Time for male GDSs. There will be no restriction on number of chances for transfer of women GDSs. The power for transfer has been delegated to the concerned Divisional head.
  • The ex-gratia payment during put off period should be revised to 35% from 25% of the wage and DA drawn immediately before put off.
  • The committee has recommended preferring transfer before put off duty.
  • The compassionate Engagement of GDSs has been relaxed to give benefits to eligible dependents in all cases of death of GDS while in service.

Source: GDS Committee Report

Looking to save tax on House Rent Allowance? Here's all you need to know

For most employees, House Rent Allowance (HRA) is a common component of their salary structure. Although it is a part of the salary, HRA, unlike basic salary, is not entirely taxable. Subject to certain conditions, a part of HRA gets exempted under Section 10 (13A) of the Income-tax Act. 

The amount of HRA exemption is deductible from the total income before arriving at a taxable income. This helps the employee in saving tax. Remember, the HRA received is fully taxable if an employee is living in his own house or if he does not pay any rent. 

Who can avail HRA? 

The tax benefit on HRA is available only to a salaried individual who has the HRA component as part of his salary structure and is staying in a rented accommodation.Self-employed professionals cannot avail the deduction. 

How much is exempted? 

The exemption for HRA benefit is the minimum of: 
i) Actual HRA received 
ii) 50% of salary if living in metro cities, or 40% for non-metro cities; and 
iii) Excess of rent paid annually over 10% of annual salary 

For calculation purpose, the salary considered is 'basic salary'. In case 'Dearness Allowance (DA)' (if it forms a part of retirement benefits) and 'commission received on the basis of sales turnover' is applicable, they too are added to compute the minimum HRA exemption available. 

The tax benefit is available to the person only for the period in which the rented house is occupied. 

Example of HRA calculation 
Let's say an individual, with a monthly basic salary of Rs 15,000, receives HRA of Rs 7,000 and pays Rs 8,400 rent for an accommodation in a metro city. The tax rate applicable to the individual is 20 percent of his income. 
To avail HRA benefit, the least of the following amount (yearly) is exempted, rest is taxable: 
i) Actual HRA received = Rs 84,000 

ii) 50% of salary (metro city) = Rs 90,000 (50% of Rs 1,80,000) 

iii) Excess of rent paid annually over 10% of annual salary = Rs 82,800 (Rs 1,00,800 - (10% of Rs 1,80,000)) 

It shows that of Rs 84,000 actually received as HRA, Rs 82,800 gets tax exemption and only the balance of Rs 1,200 gets added to the employee's income, on which a tax of Rs 240 ( 20 per cent slab ) gets payable. 


HRA exemptions can be availed only on submission of rent receipts or the rent agreement with the house owner. 

It is mandatory for the employee to report the Pan Card of the 'landlord' to the employer if the rent paid is more than Rs 1,00,000 annually, or if it exceeds Rs 15,000 per month. 

Special cases 

There could be special scenarios in claiming HRA tax benefit, such as: 

1. Paying rent to family members 

The rented premises must not be owned by the person claiming the tax exemption. So if you stay with your parents and pay rent to them then you can claim that for tax deductions as HRA. However, you cannot pay rent to your spouse. As, in the view of the relationship, you are supposed to take the accommodation together. Thus, these transactions can invite the scrutiny from the Income -tax Department. 

2. Own a house, but staying in a different city 

One can avail the simultaneous benefit of deduction available for the home loan against 'interest paid' and 'principal repayment' and HRA in case your own home is rented out or you work in another city. 

Individuals who don't get HRA but pay rent 
There may be some employees who might not have HRA component in their salary structure. Also, a non-salaried individual might be paying rent. For them, Section 80 (GG) of the Income-tax Act offers help. 

An individual paying rent for a furnished/unfurnished accommodation can claim the deduction for the rent paid under Section 80 (GG) of the I-T Act, provided he is not paid HRA as a part of his salary by furnishing Form 10B. 

How much 
The least of the following is available for exemption from tax under Section 80GG: 
(i) Rent paid in excess of 10% of total income 
(ii) 25% of the total of the total income* 
(iii) Rs 5,000 per month 

*Under this section, the total income is calculated as gross total income minus long-term capital gains, the short-term capital where Securities Transaction Tax (STT) has been paid and deductions under Sections 80C to 80U, except Section 80GG. 

While claiming a tax deduction, one must remember that the individual himself or his/her spouse, or minor child, or as a member of the Hindu Undivided Family (HUF) must not own any accommodation. Also, if the individual owns any residential property at any place and earns rent from it then no deduction is allowed. 

One can avail the simultaneous benefit of deduction available for the home loan against 'interest paid' and 'principal repayment' and HRA in case your own home is rented out or you work in another city. However, the same is not available in case of Section 80GG. 

Source:-The Economic Times (With inputs from Sunil Dhawan)

Download GDS Committee Report in PDF format


Click here to view GDS Committee Report

FNPO & NUGDS have taken all the efforts for the publication of the report. Our actions are transparent and we are not afraid of any officers & any Government. Our sole aim is to improve the lifestyle of GDS without playing any politics. 

FNPO & NUGDS will work continuously to implement positive recommendations of Kamalesh Chandra report. Our views on the report will be published tomorrow.

Full GDS Pay Committee Report - Google drive download link updated

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GDS Pay Committee Report - Mirror Site
Total Pages :434Pages
Total Size   :160MB

Click here to view detailed report - GDS Pay Commission Report Updated 19:45

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Mirror Download

Click below link to View detailed report

GDS Pay Commission Report. Pay fixation details. Report contains 434 pages. For 3 Hrs GDS work entry level pay was fixed as Rs.10000.
Ordinary Leave : 15 days in every Jan and Jul and accumulated upto 180 days.
Emergency Leave : 5 days in a year cannot carry over.
ML : 26 weeks
Paternity Leave : 7 da

Cabinet approves the repealing of the obsolete and redundant laws

Press Information Bureau
Government of India
18-January-2017 15:23 IST

Cabinet approves the repealing of the obsolete and redundant laws 

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for introduction of the Repealing and Amending Bill, 2017 to repeal 105 Acts.

The two Member Committee constituted by the PMO, the Law Commission of India and the Legislative Department identified 1824 redundant and obsolete Central Acts for repeal. After careful examination and consultation with various Ministries/Departments in the Government of India, four Acts have been enacted to repeal 1175 Central Acts (during the period May, 2014 to August, 2016) by Parliament which are –

i) The Repealing and Amending Act, 2015 (17 of 2015) repealing 35 Acts; The Repealing and Amending (Second) Act, 2015 (19 of 2015) repealing 90 Acts;

ii) The Appropriation Acts (Repeal) Act, 2016 (22 of 2016) repealing 756;

iii) Appropriation Acts including Appropriation (Railways) Acts;

iv) The Repealing and Amending Act, 2016 (23 of 2016) repealing 294 Acts.

Out of the aforesaid 1824 Acts, 227 Acts (including Appropriation Acts enacted by Parliament for the States under President's Rule) are identified to be repealed by State Governments have been requested to take necessary action to repeal them.

A list of remaining 422 Central Acts was circulated among all the Ministries/ Departments for their comments on repeal of Acts pertaining to their respective Ministries/Departments. Till date, 73 Ministries/Departments including Legislative Department have given their comments whereby they have agreed to repeal 105 Acts and disagreed to repeal about 139 Acts. On the basis of the comments/concurrence received from the Ministries/Departments, 105 Acts have been identified for repeal by this Department.

Check availability of GDS Committee Report

Click on the following links to view the GDS Committee Report

Dear GDS Friends, The kamalesh Chandra Committee report is not available in India Post websites till now.

Here is a fresh link please Click Here to check availability of GDS Committee report.


​GDS Court Case proceedings in Pr.CAT, Delhi — our Advocate informed that the case is postponed to another date. Date will be intimated latter.


7th Pay Commission: Centre Directs States to Imply Recommendations Coming March

The centre today urged various States to implement the recommendations made by the 7th Pay commission for pay hikes in salaries and pensions coming this March. Although, the Union Cabinet did not much give a merry news earlier at the star of the new year as the revised salaries got delayed. But in a recent notification provided by the Centre, it has been stated that the Finance Ministry wants all the pledged States may imply the recommendation in every plausible way henceforth not affecting any of the autonomous body.

We earlier reported that the autonomous bodies are most likely not to get affected thus urging the organisations to work out with their affairs in such a way that it may not hamper functions and put an extra burden on the central chequer. Also, the administrative ministries concerns will be taken into consideration thus keeping such cases under recommended pay scale as well as being justified on the basis of functional procedures and recruitment qualification.

Till date, most of the States have nodded in favour of implementing 7th pay commission recommendation, but the date has not been finalised yet. So, the urge to close the date in an official manner by the end of March may help lakhs of Central Government employees and pensioners a breath of relief. Jammu & Kashmir being the first in the .list to agree with Honourable PMs effort was followed by Uttarakhand, Haryana, Uttar Pradesh and Goa.

Seeking proper salary for almost 58 lakhs employees, excluding pensioners, the respective recommendation suggests minimal hike of 14.27% in basic salary, however, the lowest in the past 70 years. As the previous government recommended a minimum of 20% hike in basic salary under the 6th pay commission which was favourably doubled up when the present government came to power in 2008.

The central government employees, on the other hand, have announced a day strike on February 15, 2017, with all force to enable the previously promised pay hikes in the basic pay. Though, with demonetisation probe going on across the nation, the Centre may face a good amount of economic cost which ought to be given to each State before implying the recommendations by 7th pay commission.

Meanwhile, States who have not yet agreed on implying recommendations, but still moving ahead with the new norms set by 7th pay panel tend to face strict offences as Punjab University, which going through a financial crisis hiked its fees of few courses by 12% to 13% whereas rest of traditional courses by 5% to 6%. The government issued a notice of bearing at least 30% of the fiscal liability aroused due to pay hike as per the recommendations.

Source :

Grant of Transport Allowance at double the normal to deaf and dumb employees of Central Government – Finmin Orders

“Transport Allowance at double normal rates would be admissible to the ‘Hearing Impaired employees having loss of sixty decibels or more in the better ear in the conversation range of frequencies’ as per Persons With Disabilities (Equal Opportunities, Protection of Rights and Fun Participation) Act, 1995”

Governmént of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated: 17.01.2017

Subject: Grant of Transport Allowance at double the normal to deaf and dumb employees of Central Government

In supersession of this Department O.M.No.21(2)/2011-E-II(B) dated 19.02.2014 regarding admissibility of Transport Allowance at double the normal rates to employees who are deaf and dumb. the undersigned is directed to say that the matter has been re-examined and it has been decided with the approval of Competent Authority that Transport Allowance at double the normal rates is admissible to Hearing Impaired employees also in addition to employees who are both deaf and dumb.

2. Transport Allowance at double normal rates would be admissible to the ‘Hearing Impaired employees having loss of sixty decibels or more in the better ear in the conversation range of frequencies’ as per Persons With Disabilities (Equal Opportunities, Protection of Rights and Fun Participation) Act, 1995.

3. The admissibility of Transport Allowance at double the normal rates to above categories of employees is subject to recommendation of the Head of ENT Department of a Government Civil Hospital and fulfilment of other conditions applicable in respect of other disabilities mentioned in D/o Expenditure’s O.M. No. 19029/1/78-E-lV (B) dated 31st August, 1978 read with dated 29.08.2008.

4. In so far as the persons serving in the Indian Audit and Accounts Departrnent are concerned, this order issues in consultation with the Comptroller And Auditor General of India.

5. These orders would be effective from 19.02.2014.

6. Hindi version is attached.

(Nirmala Dev)
Deputy Secretary (EG)