Central government employees may get minimum pension of Rs. 9000 per month

Central government employees may get minimum pension of Rs. 9000 per month : Media Reports

cg employees minimum pension

Source: govemplotees,in

Govt to factor in payout of 7th pay commission in deficit targets : Hindustan Times

Govt to factor in payout of 7th pay commission in deficit targets

The payout of the seventh pay commission recommendations will make finance minister Arun Jaitley walk a tight rope when he announces the fiscal deficit targets for 2016-17.

Expected to incur an additional expenditure of Rs 1.02 lakh crore to pay higher salaries and pensions recommended by the commission, Rs 28,000 crore alone will go for salary hikes of railway employees. In total, the implementation will impact the fiscal deficit by 0.65% of the GDP.

Experts feel that deficit figures shared in the medium-term fiscal policy statement had stated that the fiscal deficit target for FY17 and FY18 is 3.5% and 3.0%, respectively will have a significant impact from the pay commission pay out, leaving the government with higher deficit numbers.

“Achieving these targets in view of the likely acceptance and implementation of the recommendations of the Seventh Central Pay Commission will be difficult. We expect that the fiscal deficit of FY17 to come in at 3.9% of GDP. This will push the attainment of the fiscal deficit target of 3% of GDP to FY19, a year later than envisaged in the fiscal policy statement. In the past also, pay revisions have pushed fiscal consolidation targets. Accordingly, the fiscal deficit targets are likely to be 3.9%, 3.5% and 3.0% in 2016-17, 2017-18 and 2018-19 respectively,” said Sunil Kumar Sinha, principal economist, India Ratings & Research.

However, the pay commission revisions are yet to be accepted by the high-powered panel headed by cabinet secretary PK Sinha. The recommendations have a bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.

An empowered committee of secretaries was being decided to screen the recommendations with regard to all relevant factors of the Commission in an expeditious detailed and holistic fashion.

Though senior finance ministry officials feel that the pay-out which is likely to come only in the middle of 2016, might not be a big burden as the arrears would not be accounting to be much, unlike the past instances.

But, it is expected that the government, while putting a final seal on the recommendations, will keep in mind the tight fiscal position of the country.

“The government will not be generous in the pay out this time as they already are facing pressures from various fronts like disinvestment and poor direct tax collections,” said Dharmakirti Joshi, currently the chief economist at CRISIL.

Finance ministry till now has maintained a stand that it will be able to meet its target despite additional outgo on account of higher pay. But, finance minister Jaitley recently admitted that the impact of implementing the recommendations would last for two to three years.

The seventh pay commission had recommended an average 23.55% increase in salaries, allowances and pension, a move that will benefit 4.8 million staffers and 5.5 million pensioners. The hike will be effective from January 1, 2016.

A minimum pay of Rs 18,000 per month and a maximum of Rs 2.5 lakh has been recommended by the commission, headed by Justice (retired) AK Mathur, that presented its 900-page report to finance minister Arun Jaitley.

The government usually accepts the broad proposals for pay revision — due every 10 years — and state governments usually respond with their own hikes.

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IMPORTANT : Grant of MACPS benefits in the promotional hierarchy DOPT circulated Stay Order dated 08.08.2014 of the Hon'ble Supreme Court of India.

Grant of MACPS benefits in the promotional hierarchy DOPT circulated Stay Order dated 08.08.2014 of the Hon'ble Supreme Court of India.

No. 22034/04/2013-Estt.(D)

Government of India

Ministry of Personnel Public Grievance & Pensions Department of Personnel & Training

***

North Block, New Delhi

Dated: 20.01.2016

Office Memorandum

Subject :- References/Representations/Court Cases in various Ministries/Departments/ Organisations for grant of MACPS benefits in the promotional hierarchy - reg.

***

            The undersigned is directed to forward herewith a copy of the stay order dated 08.08.2014 passed by Hon'ble Supreme Court in CC No. 8271/2014 (converted to SLP No. 21803/2014) in the matter of UOI Vs. Shri M.V. Mohanan Nair on the order of the Hon'ble High Court of Kerala in OP(CAT) No. 2000/2013(Z) regarding grant of MACP benefit in the promotional hierarchy, for information.

Sd/-

(Gayatri Mishra)

Director (E-I)

Phone No. 23092479

All Ministries/Departments of the Government of India).

CLICK HERE FOR FULL OFFICEMEMORANDUM

Pay Matrix Recommended by 7th CPC is not final and subject to change – Sources

Pay Matrix Recommended by 7th CPC is not final and subject to change –  Sources

There are some News posted on different Blogs that Pay Matrix / table as recommended by 7th Central Pay Commission is not final and is subject to change by the Government. So, report is being submitted here:

The Constituent Unions of NCJCM has called for three days’ agitation Programme from 19-1-2016 to 21-1-2016 to draw the attention of central government to settle the Modified charter of demands. Recently they demanded the government to constitute an empowered Committee to settle their demands through negotiation. However, the Cabinet gave its approval for constitution of an Empowered Committee to study the 7th Pay Commission report for implementation Process.

We asked some Trade Union Leaders about theirexpectation from the Government in respect of 7th Pay Commission report. They told that so far they didn’t have any formal meeting over Pay commission report with Government after the report submitted by commission. When asked about their opinion about the Format of Pay Matrix recommended by 7th Pay Commission, they said ” We don’t think that thePay Matrix recommended by 7th CPC is Final, we won’t accept the Fitment factor recommended by the Commission”

They said, “Of course there will be some anomaly would arise when it is in the process of implementation in respect of Pay Matrix . That cannot be anticipated now. As of now Anomalies in bunching and Promotion benefits are expected. But we think this Pay scale recommended in 7th pay commission report is not FINAL and subject to change. Because it needs concurrence from both the end.”

They added further ” The central government may accept this recommendation without any modification. Because the central government itself told after giving four-month extension to the Pay Commission that the Seventh Pay Commission would be mindful of the fiscal concerns. It indicates the Central Government  intention. But the Central Government Employees’  Unions and Association are very much disappointed with this recommendation and we sought modifications in many recommendations. Our Federations declared it as retrograde recommendation. Hence it will not be easy for the central government to implement the report without doing any change in the recommendations”.

So the Unions Federations are not getting too much involved in 7th CPC Pay Scales. Because they are firm in their decision that percentage of increase recommended in minimum pay is far below the required level prescribed by Dr. Akhroid formula and 15th ILC norms for determining Minimum Pay and it need to be increased. However, NFIR has tried to establish that the take home pay is very much less when compared to previous pay commissions . If the Central Government accept to increase the Minimum Pay, then that would be the criteria for arriving subsequent pay scales. Hence expecting changes in Pay Matrix is inevitable.

Source: govemployees.in

Implementation of 7th Pay Commission may take some time : a Hindi Newspaper report has published regarding it

Implementation of 7th Pay Commission may take some time : a Hindi Newspaper report has published regarding it : Read Story here :

Source: govemployees.in