7th Pay Commission proposes to increase HRA of Central Government Employees

7th Pay Commission proposes to increase House Rent Allowance of Central Government employees

Seventh Pay Commission To Propose Higher HRA

New Delhi: The Seventh Pay Commission is likely to propose to increase House Rent Allowance (HRA) of central government employees, besides their basic salaries.

By giving House Rent Allowance hikes, the Pay Commission is likely to seek to encourage property owners to rent out their properties, reduce the shortage of dwellings and to provide ‘housing for all central government employees’.

Besides the basic salary, a large portion of central government employees’ salary is the House Rent Allowance; some changes will be made in that category this time.

Instead of the existing three areas for house rent, four are likely to be created. ‘X’ class cities Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, where employees will get 40 percent of their basic salary as House Rent Allowance (HRA), increasing from the existing 30 percent.

Employees posted at ‘Y’ class cities covers near about 90 stations, will receive 30 percent of basic salary, instead of the existing 20 percent.

A new area will be opened for the district towns; the central government employees will get 20 percent of their basic salary as House Rent Allowance (HRA) there.

In other areas, the house rent allowance will be 10 percent of basic, which is the existing rate of House Rent Allowance (HRA) of ‘Z’ class cities.

The existing qualifying threshold of population for HRA classification is 50 lakh and above for X, 5-50 lakh for Y and below 5 lakh for Z class cities.

However, the central government’s salary bill will rise by 9.56% to Rs 1,00,619 crore with the implementation of the recommendations of the Seventh Pay Commission, according to a statement tabled in Parliament by Union Finance Minister Arun Jaitley on August 12.

Source: TST

7th CPC - Regularisation of Retirement Age

7th Central Pay Commission – Regularisation of Retirement Age?

As the recommendation and implementation of the 7th Central Pay Commission is eagerly awaited by the central government employees, some points in the recommendations are slightly leaking in..It may not be authentically correct.

According to information from various sources, the Pay Commission may fix the minimum basic pay at Rs. 15000/- and it is assumed that a huge increase in the salaries of the employees cannot be expected. The term of the commission was extended for four months and they are in full swing giving final touches to the report to be submitted to the central government by the end of December 2015.

One more recommendation which is said to be an important one, is the regularisation of retirement age for the Central Government Employees. The Commission may recommend that an employee should retire after completing 33 years of service or at the age of 60 whichever comes first. For instance, if an employee joins a central government establishment at the age of 23, his retirement age will be 56. If this recommendation is true, it will definitely create panic among the employees and it will not be a wise decision by the pay commission. All Federations and Associations will strongly oppose these type of recommendations…

The 6th CPC had brought various changes in the Pay Structures and introduced Grade Pay. There was a moderate increase in the Basic Pay, House Rent Allowance and re-imbursement of tuition fees was also introduced. The minimum basic pay was Rs.5200+Grade Pay 1800=Rs. 7000/- while it was Rs. 2650/- in the 5th CPC.

Further, it is also said that, the 7th CPC may abolish the 6th CPC’s Pay Scales and may bring back the old pay scales. The overall increase in the Pay Scale will be around 15% to 20%…

Let us wait and see for the ultimate results…!

Source: http://www.govtstaffnewsportal.in/2015/09/14/7th-central-pay-commission-regularisation-of-retirement-age/

NC JCM Staff Side demands OROP from 7th Pay Commission

NC JCM Staff Side demands One Rank One Pension from 7th Pay Commission

Parity between Past and Future Pensioners : Com. Shiva Gopal Mishra secy. staff side/NCJCM has written a DO letter to chairman 7th Pay commission for pension Parity between past and future pensioners.

Shiva Gopal Mishra

Secretary

Ph: 23382286

National Council (Staff Side)

Joint Consultative Machinery

13-C, Ferozshah Road, New Delhi – 110001

E-Mail: nc.jcm.ni@gmail.com

No.

Dated 11.09.2015

Justice Shri Ashok Kumar Mathur,

Chairman,

Seventh Central Pay Commission,

New Delhi.

Dear Sir,

Sub: Parity between Past and Future Pensioners

While urging for parity in Pension; for past and future pensioners before the Seventh Central Pay Commission, Staff Side, National Council/JCM vide Chapter-IV, Para 4.1 submitted as follow:-

“The Government have recently announced that “One Pension’ shall be implemented in respect of Armed Forces so that the glaring disparity between the persons of equivalent rank and status do not draw vastly unequal pensions if they retire at different point of time is undone. Already there is a complete parity in pension among the Judges of Supreme Court, High Court and the Comptroller and Auditor General of India, irrespective of the date of their retirement”. Now the Government of India has accepted the demand for ‘One Rank One Pension’ in respect of Armed forces.

The detailed justification for the same has already been submitted in our aforesaid Memorandum, as well as during our Oral Evidence before the Central Pay Commission.

The Civilian employees of Central Government have been waiting anxiously for implementation of the same equally for them and hope that the Seventh Central Pay Commission would administer Justice by recommending “One Rank One Pension’ to all other past and future pensioners irrespective of their date of retirement and remove the injustice done to them so long.

Yours faithfully,

(Shiva Gopal Mishra)

Source: NCJCM Staff Side

Click to view the letter

One Rank One Pension : Modi Requests Withdrawal of Protests; Anna Hazare cancels hunger strike

OROP: Modi Requests Withdrawal of Protests; Anna Hazare cancels hunger strike

“It is worth mentioning the fact that the Centre had recently fulfilled the 40 year long pending demand of the ex-servicemen regarding their pensions.”

The government at the centre, under the leadership of Narendra Modi, has requested the ex-servicemen to withdraw their protests on OROP. The government has said that there was no point in carrying on with the protests, now that the issue has been resolved.

The government had recently accepted the 40 year long demand of the ex-servicemen to grant OROP. But the ex-servicemen are demanding that the scheme also be made applicable to those who had opted for voluntary retirement and that the pension be revised once every year. Protests are continuing for the implementation of these and a few other important demands.

Amit Shah, the national president of the BJP has accused the Congress of trying to manipulate every issue to gain political mileage. “We have fulfilled our promise to implement OROP. After keeping quite for all these days, why is Congress making noise now?” he asked.

Meanwhile, Anna Hazare has announced that he was withdrawing his earlier announced protests for OROP. He was planning to launch a massive fast on October 2 demanding the implementation of OROP and withdrawal of the Land Acquisition Bill. Since it has now become clear that there is no possibility of clearing an emergency bill on land acquisition, and since the government has accepted the OROP demands, he has said that he was withdrawing the protests.

6% Dearness Allowance hike from July 2015 – Central Cabinet approved yesterday

6% DA hike from July 2015 – Central Cabinet approved yesterday

“The central cabinet has given its approval yesterday to a six percent hike in dearness allowance from July 2015 onwards, for Central Government employees and pensioners.”

Central Government employees and pensioners get two dearness allowance hikes each year. The dearness allowance for the period of months between January to June is given in March; the DA hike for July to December is given in September.

Accordingly, the second installment of Dearness Allowance, for the months of July to December, has been fixed at 6 percent. The cabinet gave its approval yesterday. The current DA of 113% will, from 01.07.2015 onwards, increase to 119%.

Following the hike, Central Government employees will get a minimum increment of Rs.420 per month. The increase is dependent on the basic pay(Band Pay + Grade Pay) of the employees. For example, let us consider an employee who has been working for 25 years, and receives a basic pay of Rs.16,000 per month. He will get a DA hike of Rs.960.

The current method of calculation of DA was prescribed by the 6th Pay Commission. The method, which has been in effect for nearly ten years now, will be used one last installment to calculate the DA of January (01.01.2016). The subsequent Dearness Allowance calculations will be made based on the method recommnded by the 7th Pay Commission. The Commission is expected to submit its recommendations to the Centre by December this year. The recommended revised method of calculations for DA in the report will be follow to arrive DA from 1.1.2016.

Towards the end of this month, the Ministry of Finance will issue relevant orders to give out six percent DA payment to the Central Government employees and pensioners. Only then will the increased DA be given to the employees, along with the arrears of the past two months (July and August).

78 cities were selected from all over the country and the fluctuations in the prices of essential commodities in these cities are tracked. These fluctuations are used to calculate the monthly points (CPI-IW BY 2001 = 100), which are further used to arrive at the dearness allowance.

Source: Govtenews