Monday, January 30, 2017

First two branches of India Post Payments Banks inaugurated - Video

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Welcome Kit of IPPB - Benefits of Banking

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Providing proper minimum wage of Rs 27000/- for CG Employees Pay fixation formula

The staff side of the JCM had given representation demanding Rs 10,000/- as minimum wage for Central Government Employees. The 6th CPC in its report vide para no 2.2.15 had calculated a minimum wage of Rs 5478/- today if we are calculate the minimum wage it should be more than Rs.21,000/- apart from HRA and other allowances. Hence there is three times increase in actual prices calculated by the 6th CPC and the current prices.The current wages of the CG Employees should be doubled at least including that of GDS.

The most comprehensive criteria for covering all the basic needs were evolved by the 15th Indian Labour Conference (ILC) in 1957 for fixing minimum wages. The norms are that a need-based minimum wage for a single worker should cover all the needs of a worker’s family consisting of a spouse and two children.

The food requirement was to be 2,700 calories, 65 grams of protein and around 45-60 grams of fat as recommended by Dr Wallace Aykroyd for an average Indian adult of moderate activity. Dr Aykroyd pointed out that animal proteins, such as milk, eggs, fish, liver and meat, are biologically more efficient than vegetable proteins and suggested that they should form at least one-fifth of the total protein.

Dr Aykroyd worked on nutrition for nearly 30 years and was director of the Nutrition Division, Food and Agriculture Organisation, United Nations. In 1935, he was appointed Director of the Government’s Nutritional Research Centre in India, situated in Coonoor in the south.

The 15th ILC further resolved that clothing requirements should be based on per capita consumption of 18 yards per annum, which gives 72 yards per annum for the average worker’s family. For housing, the rent corresponding to the minimum area provided under the government’s industrial housing schemes was to be taken. Fuel, lighting and other items of expenditure were to constitute an additional 20% of the total minimum wage.

The Supreme Court upheld these criteria in the case of Unichoy vs State of Kerala in 1961. In the later Raptakos Brett Vs Workmen case of 1991, the SC went one step further, and held that besides the five components enunciated by the 15th ILC, minimum wages should include a sixth component, amounting to 25% of the total minimum wage, to cover children’s education, medical treatment, recreation, festivals and ceremonies. The SC also observed that a wage structure including the above six components would be “nothing more than minimum wage at subsistence level” which the workers must get “at all times and under all circumstances”.

Minimum Salary-Analysis &Recommendations para 2.2.15

The Commission, however, agrees that the norms set by the 15th International Labour Conference (ILC) are appropriate for computing minimum salary. It is also observed that the minimum salary is applicable at the time a person joins the Government which will usually be at a young age when a person may be just married and will not have responsibility of parents or many children. Accordingly, the family unit for minimum salary can only be taken as three.

The Minimum Salary should be based on 6 units not three units as per 6th CPC calculation. As both parents and two children are depending on the salary of Government servant apart from spouse. the additional burden the employees will carry after a few years of service as his parents would have retired from service and are wholly dependent on him also his children would have stepped into school / college level, even small baby requirements are much unlike in the past years, the hence the minimum wage he gets will not compensate with the family financial burden Hence the whole calculations needs a undergo a drastic change in next CPC taking into account of 6 units rather than 3 units .

The Sixth Central Pay Commission has recommended a minimum wage of Rs 6600/- per month against the demand of Rs.10,000/- per month as worked out by Staff side of JCM. Today the minimum need based wage works out to Rs.21,000/ per month+ HRA+ allowances.The general minimum expenses per month for a family of four members are as follows when a Government servant joins the duty with two small children:
a) Vegetables Rs.3000/-
b) Food Grains /Groceries Rs.7000/-.
c) House rent single room Rs.6000/-
d) Clothing Rs.3000/-
e) Children education and their expenses Rs.2000/-
f) Electricity Chargers Rs.800/-
g) Water Charges Rs.250/-
h) Transportation charges Rs.1000/-
i) TV cable rent Rs.300/-
j) Medical Expenses Rs.500/-
k) Mobile expenses Rs.250/-
l) Cooking Gas Rs.450/-
m)Recreation charges Rs.500/-
n) Personal expenses Rs.1000/-
Total Rs 26500/-Hence minimum wage works out to Rs 27,000/-
The expenses will increase as the age of Government servant goes up and family responsibility will increase as he has to educate the children in professional courses, marriage of his children has to be performed, his medical expenses will increase, his parents will stay with him and now there are quite dependant on the Government servant for their lively hood. As such the salary should be more to meet his expenses. The Government is a model employer hence the wages should be provided with the needs.


Fixation of Minimum wage as on 1.1.2006 as per 15 ILC norms as per Table 2.2.1 of the 6th CPC report and the minimum wage as per current prices we compare minimum wage should be three times the 6th CPC recommendations.
Source: Average market rates in Kolkata, Chennai, Delhi and Mumbai as indicated in the Economic Times & Other major dailies (element of 20% has been added to cover the increase in cost in retail sale).
Notes PCU = Per day Consumption Unit 3CU = Three Consumption Units that is wife, husband and a child no parents or second child is taken into account.
* 20% Miscellaneous charges towards fuel, electricity, water etc.

** Additional Expense at the rate of 25% includes expenditure towards education, Medical treatment, housing, recreation, festivals etc.

# Has been taken as Rs.400 because separate allowances for education, medical
  • Treatment and housing exist in the Government. Consequently, only the expenditure
  • Towards recreation & festivals need to be taken in account.
^ Being the license fee chargeable for government accommodation at an average rate of 3% of the basic pay.
Total minimum wage is Rs 17225+ HRA Rs 7000/- + Transportation Allowance Rs 2500/-= Rs 26725 that is Rs 27,000/-
The fixation of minimum basic pay of Rs 21000/- is taking into the account of minimum skill and education requirement as 10th Standard as prescribed by the 6th CPC. As the education requirement is more such as Diploma in Engineering or Degree in Science or Commerce, then the minimum basic pay should be Rs.40,000/- (8700+4200) X 3 = Rs 39,000/-. For Engineering Graduates and Master Degree it should be Rs 65,000/- .

The pay scales should start with a minimum basic pay including Grade Pay of Rs 21,000/- to end with 2, 10,000 with a ratio of 1:10 of minimum scale and maximum scale. Since government is a model employer they should provide minimum wages as per the 15 ILO conference and other wages as per the educational qualification & skill requirement of the job.

The multiplying factor is calculated as below:

The existing basic pay + Grade pay+ DA 100%+ weightage of 100% ( that is the difference between the actual price rise and the DA paid) that is the multiplying factor works out to three.
Note: The actual price rise is over 200% the DA is only 90%.
The existing basic pay + grade pay+ DA 100%+DA merger = Net wage + weightage of 70% (that is the difference between the actual price rise and the DA paid).
The pay scales should have a multiplying factor of three, that means the existing pay scales and pay (basic pay + GP) should be multiplied by three.The pay scales arrived should not have any bunching of basic pay as done in the 5th CPC. The time scales should last for more than 10 years so that there is no stagnation.

The concept of fair wages has been deprived to CG Employees. Usually pay commissions had adopted a multiplying factor of 3.2 to 3.8 to arrive at the new scales compared to earlier scales. But the VI CPC adopted conversion factor of about 2.6 at the lowest where as it was about 3.6 at the highest scale. By this method well established ration 1:12 between the lowest scale and highest scale was disturbed by the VI CPC.

The minimum pay & band pay fixed by the 6th CPC was very low compared all other pay commissions for example a new recruit for the post of LDC his pay is Rs 5200+ 1900 = Rs 7100/- + allowances, that should have been actually Rs 3050 multiplied by 3.6 times which works out to Rs.11000/- .

In case of a Graduate or Diploma holder as per 6th CPC it is Rs 9300 + 4200= Rs 13500/- + allowances, that should have been actually Rs 5000 multiplied by 3.6 times which works out to Rs 18000/- .

In case of a Master degree holder as per 6th CPC it is Rs 9300 + 4800= Rs 14100/- + allowances, that should have been actually Rs 6500 multiplied by 3.6 times which works out to Rs 23000/- .

Hence the justification of multiplying factor of three is justified.

The ratio between the lowest and highest scales should not more than 1:10

The existing basic pay should be multiplied by factor three, so that there is no bunching of basic pay. The existing GP of Rs 2000/- and Rs 2800/- should be removed. Likewise there are GP of Rs 5400/- in both PB-2 and PB-3 one of them is to be removed.

There are 34 scales recommended by the 6th CPC, out of which four Grade Pay has been not in existence, as such 30 GP are right now available.

With the merger of pay scale from S9 to S12 into Grade Pay of Rs 4200/-

There are many pay scales which was merged into single GP of Rs.4200/- which has created anomalies, the promotions have been made in same grade pay without financial benefits.

There should be time scale rather than grade pay system, these time scales should long enough.

Regarding payment of Allowances to PS Group “B” officers whose grade pay has been up graded from Rs. 4800 to 5400

No. 7-6/2016-PCC
Government of India
Ministry of Communications
Department of Posts
Dak Bhawan, Sansad Marg,
New Delhi – 110001

Date : 11.01.2017

All the Heads of Circle

Office Memorandum

Sub : Regarding payment of Allowances to PS Group “B” officers whose grade pay has been up graded from Rs. 4800 to 5400.

Attention is invited to G.S.R. 721 (E) and copy of Resolution published under no. 1-2/2016-IC dated 25.7.2016 by Ministry of Finance circulated vide DP Posts OM No. 7-2/216-PCC and Para 4 of Ministry of Finance, Department of Expenditure OM No. 1-5/2016-IC dated 29.07.2016 circulated vide DG Posts No. 7-2/2016-PCC dated 01.08.2016 regarding implementation of recommendation of 7th Central Pay Commission.

2. In this connection various Circles and Associations have sought clarification regarding payment of Transport and other allowances to the officials whose Grade Pay has been upgraded on the implementation of the recommendations of the 7th Central Pay Commission.

3. The matter has been examined in consultation with Implementation Cell, Department of Expenditure and the clarification given by the Department of Expenditure vide the ID Note No. 30-1/7(ii)/2016-IC (Pt) dated 9.1.2017 is as under :-

“regarding admissibility of Transport Allowance and HRA to Superindentdent (Posts) as per up-graded Grade Pay of 5400 (PB-2) from GP 4800 w.e.f. 1.1.2016, consequent upon the up-gradation of post vide this Department notification dated 25.07.2016 of CCS (RP) Rule, 2016.

The issue has been examined by this Department. Accordingly, the Department of Posts is advised to reckon and pay the Allowances (other than DA) to Superindentdent (Posts) corresponding to their up-graded Post in re-revised pay structure w.e.f. 1.1.2016 at the existing rate under the terms and conditions prevailing in the pre-revised pay structure till the date of effect of allowances (other than Dearness Allowance) be notified by this Department”.

4. This may be brought to the notice of all concerned for necessary action.

(R.L. Patel)
Asst. Director General (GDS/PCC)

Authority: India Post

Promotion and postings of SAG Officers of IPoS, Group A to HAG

Promotion and postings of Senior Administrative Grade (SAG) officers of Indian Postal Service, Group 'A' to Higher Administrative Grade (HAG) of the Service and posting of an HAG officer of the Service 30-01-2017

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Chip Based ATM cum Debit Card from IPPB (India Post Payments Bank)

Chip Based ATM cum Debit Card from IPPB (India Post Payments Bank)
The India Post Payment Bank will issue chip-based ATM cum debit card to its customers in lieu of conventional magnetic tape based cards. A microchip is embedded on the card and contains all information in an encrypted format. It also comes with a personal identification number (PIN). 

When a chip-based card is used at the point of sale (POS) terminal, the terminal reads the encrypted format on the card and asks for a PIN and only then is the transaction processed. A chip-based card cannot be read unless you punch in the PIN.

Following is the first look of Rupay Debit of IPPB to be supplied to its account holders.
So far, only Axis Bank Ltd, HDFC Bank Ltd, State Bank of India (SBI), ICICI Bank Ltd and Kotak Mahindra Bank Ltd have launched chip-based cards in India. Some banks offer chip-based cards without a PIN; they use your signature for authentication.

The pilot branches of IPPB will be inaugurated at Raipur and Ranchi through video conferencing by Arun Jaitely and Manoj Sinha on 30th January 2017, at 5PM.

GST: Finance Minister may hike service tax to 16-18% in Budget

New Delhi: Finance Minister Arun Jaitley may hike service tax rate to 16-18 per cent from the current 15 per cent in the Budget, due on Wednesday, as a precursor to the Goods and Services Tax (GST) rollout. 

The move, that will make flying, eating out, phone bills and a host of other services expensive, would be an attempt to take the rates closer to the proposed tax slabs for GST.

GST, which will subsume central and state levies like excise duty, service tax and VAT, is scheduled to be rolled out from July 1.

The tax slabs decided for the GST are 5, 12, 18 and 28 per cent and taking service tax closer to one of the slabs is a logical move in the Budget, tax experts said.

Tax experts say, Jaitley, who had in his previous budget hiked service tax rate by 0.5 per cent to 15 per cent, may raise the levy by at least one percentage point to 16 per cent.

Some others feel there could be different service tax rates with a lower 12 per cent for basic services and a higher 18 per cent for the rest.

Also, a higher service tax for April-June will help the government garner more revenue to meet expenses on schemes and programmes it may be planning to contain the impact of demonetisation.

A service tax rate closer to the GST rate will also help consumers avoid a greater price shock when the new national sales tax is rolled out.

While service tax until now is a central levy, it will be equally split between the Centre and states under the new GST regime. Most services, except essential ones like primary healthcare and basic education, will be covered by GST.

Service tax was budgeted to provide Rs 2.31 lakh crore in 2016-17, more than 14 per cent of the Centre’s total tax revenues of Rs 16.30 lakh crore.

This will be the third time that Jaitley will raise service tax rate. Service tax from June 1, 2015 was hiked from 12.36 per cent to 14 per cent. A 0.5 per cent Swachh Bharat Cess was levied on all services, taking the total incidence of service tax to 14.5 per cent from November 15, 2015.

In the last Budget, he imposed a Krishi Kalyan Cess at the rate of 0.5 per cent on all taxable services to take the levy to 15 per cent.


IPPB Savings Account Charges and Remittance Charges Published

IPPB - Schedule of Charges
(Tariffs are excluding applicable taxes)
Savings account charges and features

  1. The above charges are in addition to the transaction charges (e.g. charges for AEPS are not included above). Please refer to the respective sections for transaction charges
  2. The higher of financial and non-financial transaction charges for doorstep banking will be levied in case a customer avails both the facilities in a single visit (e.g. If a customer avails cash deposit of INR 10,000 and balance enquiry in a single doorstep visit, the customer will be charged INR 20 for that visit)
  3. Only three transactions are allowed per visit. Fourth transaction would be treated as another visit, and charges would apply accordingly

First IPPB Inauguration at Raipur & Ranchi on 30th January 2017 at 5PM

Secretary, Department of Posts requests the please of your company at the inauguration of the pilot branches of IPPB at Raipur and Ranchi through video conferencing by Arun Jaitely and Manoj Sinha on 30th January 2017, at 5PM, National Media centre, New Delhi.

Click below to view or download the invitation

Observance of Silence on 30th January - DOP, TN Circle

Philately Bureau to get a makeover soon

CHENNAI: January 29, 2017
Visitors to the Electric Theatre, a heritage structure that now houses the Philately Bureau, will soon enjoy the art of stamp collection better as the Department of Posts has recently converted the space with audiovisual equipment.

Located on the premises of Anna Road Head Post Office, the Philately Bureau is a popular venue for several exhibitions and also space for customers to access ‘My Stamps’ facility. Officials of the Postal Department said the audiovisual room will regularly screen documentaries and movies related to post offices and philately during exhibitions. This initiative will also help educating school children about the history of the Postal Department and encourage them to take up philately as a hobby.


Moreover, a permanent philately exhibition will be set up in a portion of the hall in the Philately Bureau. The Department of Posts is also considering restoring the heritage structure with the help of Indian National Trust for Art and Cultural Heritage (INTACH). 

Citing historian S. Muthiah’s book on Madras Rediscovered, officials said that silent movies were screened in the Electric Theatre during 1913. The Posts and Telegraphs Department bought the theatre in 1915 and built the Mount Road post office and other buildings around it. 

In 1998, the building was developed into a philately bureau and comprised an exhibition hall.

A philatelic special cover has also been released to mark the restoration project of Electric Theatre. Mahesh Parekh of South India Philatelists Association welcomed the initiative as it would help spread information about the various features of philately. “A minimum of 15 philately exhibitions is held in the philately bureau every year. The audiovisual facility will help in creating more awareness about philately and postal service,” he said. 

Source :

Officers to face action for delay in GPF payments to retiring employees

New Delhi: Action will be taken against the officers concerned in cases of delay in processing payment of General Provident Fund (GPF) to retiring employees, the Centre has said.

The move comes after it was noticed that GPF final payment in many cases was not being made to the government servants immediately after retirement leading to payment of interest for the period delayed.

In an order, the Ministry of Personnel said in order to ensure timely final payment of GPF and to avoid unnecessary financial burden on account of interest, it has now been decided that every case, in which payment of interest on General Provident Fund becomes necessary beyond the date of retirement, shall be put up for consideration to the Secretary of the administrative ministry.
"In all such cases the Secretary of the administrative ministry or department will fix responsibility at all levels to take appropriate action against the government servant or servants who are found responsible for the delay in the payment of General Provident Fund," it said in the directive to all central government departments.

Senior Personnel Ministry officials also said there have been a few instances in which there were complaint of delay in giving final amount of GPF to the retiring employees.

Rules clearly provide that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make the payment.

The authority for the amount payable is to be issued at least a month before the date of superannuation, but payable on the date of superannuation, the rules say.

The Centre had in 1996 dispensed with the requirement of submitting a written application by the retiring government servant for GPF final payment.

As per the rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also.


2 arrested for fraud in postal department recruitment

LUCKNOW: Two members of a gang fleecing job aspirants were nabbed by sleuths of STF on Saturday. Those arrested were identified as Ram Praveen and Dharamraj Kumar, both of Nalanda, Bihar. The police also seized their two mobile handsets. 

SSP STF Amit Pathak said the gang leaked results of exam for selection of multi-tasking staff and postman conducted by Indian Postal services on a fake website ahead of official results. Preliminary investigations revealed the kingpin Dharamraj used to make calls and ask for money promising selection and charged Rs 30,000 from each candidate for the post of multi-tasking staff and postman.

They had duped around 300 students giving them different bank account numbers to deposit cash and had amassed Rs 90 lakh. "We are probing their bank details and also of others associated with the gang," police told TOI. 

The gang used to call up applicants who had scored less than qualifying marks and assured to increase their marks against payment of cash. The gang had leaked data of applicants and results from third party which conducted the examinations. 

They had created a fake website of Indian Postal Department Examination Results and duped thousands of applicants and eventually the exam had to be cancelled. The exam was conducted by Indian PostalServices in December 2015, at Agra, Allahabad, Bareilly and Lucknow. 

To win the confidence of aspirants, the miscreants formed a base in Nalanda, one of the most revered seats of learning in Bihar. STF inspector Abhinav Singh said the probe began when V K Gupta, vigilance officer of postal department lodged an FIR in 2016 regarding the fraud.