Postal Employees Blog

Monday, 7 December 2015

7th Pay Commission Recommendations on Leave and Holidays

7th CPC Leave Rules : 7th Pay Commission has recommended on Holidays and Leave for Central Government Employees and Offices…

Holidays and Leave : Presently Central Government offices observe a five-day week which results in 104 holidays every year on account of weekends. In addition, there are three National Holidays, fourteen Gazetted Holidays and two Restricted Holidays. Further, civilian government
employees are entitled to 8 days’ Casual Leave, 20 days’ Half Pay Leave (commutable to Medical Leave) and 30 days’ Earned Leave. Besides the above, quite a few other types of leave are admissible.

The following paragraphs bring out, in alphabetical order, the different kinds of holidays and leave admissible, demands received (if any) and views of the Commission on each one of them. Unless otherwise stated, the existing terms and conditions regulating these holidays and leave shall remain unchanged.

Casual Leave (CL) : Casual Leave is granted to enable a government servant to attend to sudden/unforeseen needs/tasks. Presently 8 days CL is normally granted to a Central Government employee per calendar year. The number goes up to 10 days for Industrial Workers, 20 days for Defence
Officers and 30 days for Defence PBORs. Certain other categories of staff, particularly in the Railways, are granted CL ranging from 11 to 13 days in a year. Demands have been made to increase the number of CL to 15 days for Industrial Workers and 12 days for other employees. CAPFs have also sought parity with defence forces in matters of Casual Leave.

Analysis and Recommendations : Regarding the number of Casual Leave, the Commission is of the view that the present system is working well and need not be altered. As far as the case of CAPFs for parity with defence forces is concerned, the Commission notes that CAPFs are essentially civilian forces and their service conditions are different from defence forces. Hence parity in terms of number of casual leave cannot be considered. To sum up, status quo is recommended.

Child Adoption Leave : This leave is granted to female employees, with fewer than two surviving children on valid adoption of a child below the age of one year, for a period of 135 days immediately after the date of valid adoption.

Analysis and Recommendations : No demands have been received regarding this leave. Accordingly, status quo may be maintained.

Child Care Leave (CCL) : Child Care Leave (CCL) is granted to women employees for a maximum period of two years (i.e., 730 days) during their entire service for taking care of their minor children (up to eighteen years of age). There are several demands relating to CCL which include converting
the same into “family care” leave, extending the facility to male parents and many representations stressing that it should be extended at least to single male parents. Suggestions have also been received that in cases where the child is differently abled, the clause stipulating that the child should be minor, should be done away with. Single mothers have highlighted their unique problems and requested the Commission for liberalising the grant of CCL. Interestingly, representations have also been made for discontinuance of the CCL, primarily on the grounds that it disrupts office working and also because it promotes gender discrimination.

Analysis and Recommendations : When CCL was first introduced by the VI CPC it generated considerable interest as it represented a positive measure benefiting women employees. It also took a while to stabilise and it is seen that as many as five amendments/clarifications were issued within a short period of time. As it stands, it is meant for women employees “for taking care of up to two children whether for rearing the children or looking after their needs like examination, sickness etc.” It is treated akin to Earned Leave and is sanctioned as such. It may not, however, be granted in more than three spells in a calendar year.

In the first two years of its implementation the experience was that women employees tended to treat this as Casual Leave or an extension of the same, and the resultant frequent absences caused disruptions at work. To address this, in September 2010, a clarification was issued stipulating that CCL may not be granted in more than three spells in a calendar year and also that it may not be granted for less than 15 days at a time. However, the latter stipulation was subsequently withdrawn and as per the latest clarification issued on 5 June, 2014 the government has decided to remove the requirement of minimum period of 15 days CCL. It has been brought to the notice of the Commission that the capping of maximum three spells in a
calendar year has, to some extent, addressed the problems relating to disruption of work.

Notwithstanding that, in the course of discussions with various stakeholders, the sense that has come across is that what was introduced as a welfare measure to help employees in times of need, is seen as a benefit that has to be availed simply because it exists. There is, therefore, a palpable need to bring in some inhibiting feature so as to ensure that only genuinely affected employees avail of this scheme. Towards this end the Commission recommends that CCL should be granted at 100 percent of the salary for the first 365 days, but at 80 percent of the salary for the next 365 days. In making this recommendation the Commission has also kept in mind the fact the concept of a paid (whether 100% or 80%) leave solely for child care for a period of two years, is a liberal measure unmatched anywhere else.

The Commission notes that in the event a male employee is single, the onus of rearing and nurturing the children falls squarely on his shoulders. Hence extension of CCL to single male parents is recommended. Moreover, the Commission recognizes the additional responsibility on the shoulders of employees who are single mothers.Accordingly, it is recommended that for such employees, the conditionality of three spells in a calendar year should be relaxed to six spells in a calendar year.

Commuted Leave : Presently, Commuted Leave not exceeding half the amount of half-pay leave due can be taken on medical certificate. A demands have been made to do away with the need for medical certificate.

Analysis and Recommendations : The Commission does not find merit in the demand. Status Quo is recommended.

Earned Leave (EL) or Leave on Average Pay (LAP) : Presently 30 days EL per annum is granted to Civilian employees and 60 days to Defence
personnel. EL can be accumulated up to 300 days in addition to the number of days for which encashment has been allowed along with LTC. Suggestions have been made to increase the accumulation to 450 days, allow encashment of 50 percent of the accumulated EL after 20
years of service and delink encashment of leave from LTC. A novel concept of “gifting” has been put forward, wherein employee should be allowed to ‘gift’ certain number of days of leave to one’s spouse or one’s colleague. “Vacational” staff like teachers, principals, etc. have demanded restoration of 10 days EL, which was changed to 20 days Half Pay Leave by VI CPC.

Analysis and Recommendations : In many organizations, employees are encouraged to take leave on the premise that it revitalizes them and is beneficial for the organization in the long run. Such a system is not prevalent in the government sector in India, but substituting leave with cash is also not desirable. Hence, no change in encashment guidelines is recommended.

The Commission recognizes that Earned Leave is, as the name suggests, earned by an employee through the services rendered. Hence, it is personal to the employee and the concept of “gifting” cannot be considered. The demand of “Vacational” staff can, however, be agreed to. Hence, it is recommended that “Vacational” staff be granted 10 days EL in place of 20 days Half Pay Leave. Other than this no other change is recommended.

Extra Ordinary Leave (EOL) : EOL is granted to a government servant when no other leave is admissible or when other leave is admissible, but the government servant applies in writing for extraordinary leave. This leave is neither debited to leave account nor is any leave salary paid. No demands have been received regarding this leave. Accordingly, status quo may be maintained.

Furlough Leave : This leave is admissible only to defence officers for up to 60 days. It can be availed at half pay, once in a cycle of three calendar years. No demands have been received regarding this leave. However, the Commission is of the view that Furlough Leave is a legacy of the pre Independence era. Since defence officers are already entitled to double the Earned Leave and more than double the Casual Leave available to civilian employees, there is no justification for continuation of Furlough Leave. Hence, it is recommended that Furlough Leave be abolished.

Half Pay Leave (HPL) or Leave on Half Average Pay (LHAP) : Presently, government employees are entitled to 20 days of Half Pay Leave for each completed year of service, credited @10 days on the 1st of January and 1st of July every year. There are representations that encashment of HPL should be allowed at the time of superannuation.

Analysis and Recommendations : The demands lack merit. Elsewhere in the report it has been recommended that 20 days HPL granted to “Vacational” staff be converted into 10 days EL. Hence, HPL will henceforth not be available to them. No change other than this is recommended.

Hospital Leave : This leave is granted to Group `C’ Railway employees if they are suffering from illness or injuries directly due to risks incurred in the course of official duties, on production of medical certificate. Full pay is admissible for first 120 days and half pay thereafter. The leave may be combined with any other kind of leave due and admissible, provided total period of leave does not exceed 28 months. Demands have been received to increase this leave to an unlimited period of time as applicable to PBORs of defence forces.

Analysis and Recommendations : This has been discussed under Special Disability Leave

Leave Not Due (LND) : LND is granted when the employee has no half-pay leave at credit and he/she requests for the grant of Leave Not Due. It is granted only on medical certification, if the leave sanctioning authority is satisfied that there is a reasonable prospect of the employee returning
to duty on its expiry. LND during the entire service is limited to a maximum of 360 days and will be debited against the half-pay leave that the employee may earn subsequently.No demands have been received regarding this leave. Accordingly, status quo may be maintained.

Maternity Leave : Maternity leave is granted to women government employees–up to 180 days for pregnancy and 45 days in the entire service for miscarriage/abortion. Maternity leave can be combined with any other leave upto two years without medical certificate. The Commission has received representations for enhancement of Maternity leave to 240 days with full pay and further 120 days with half pay.

Analysis and Recommendations : It is noted that Maternity Leave was raised from 135 days to 180 days and ‘period in continuation’ raised from 1 year to 2 years by the VI CPC. No further increase is warranted. Status quo is recommended.

Paternity Leave : Presently, a male employee with less than two surviving children may be granted Paternity Leave for a period of 15 days during the confinement of his wife, up to 15 days before or six months from the date of delivery of child. Paternity leave may also be granted to a
government servant with less than two surviving children on valid adoption of a child below the age of one year, within a period of 6 months from the date of valid adoption. There are demands to increase the period to 30 days.

Analysis and Recommendations : Present dispensation of 15 days is adequate. Status quo may be maintained.

Sick Leave : This leave is admissible to defence personnel only on account of sickness attributable/ aggravated due to service conditions. Full pay is granted for the entire duration of hospitalization. Beyond that, defence officers are allowed Sick Leave with full pay and allowances for first six months and fully pay only for next 18-24 months, while there is no such limit for PBORs. There are demands from CAPFs for complete parity with defence forces in respect of provisions of Sick Leave.

Analysis and Recommendations : Discussed under Special Disability Leave.

Special Casual Leave (SCL) : SCL is granted to employees to cover their absence from duty for various occasions like sports events, cultural activities, participation in Republic Day Parade, voluntary blood donation, Trade Union meetings, etc. Full pay is granted during SCL and it can be sanctioned with retrospective effect also. There are demands to extend SCL to organ donors till the time they are fit to resume duty.

Analysis and Recommendations : The Commission would like to express its concern at the widespread use of SCL as a means of getting away from duty. However, because of the extensive scope and case specific nature of this leave, no concrete recommendations can be made. The government may, however, consider the following suggestions:
1. Review the purposes for which SCL is presently granted.
2. Limit the number of purposes for which an employee can be granted SCL in a year.
3. Limit the total number of days that an employee can be granted SCL in a year.

Special Disability Leave : It is admissible to civilian employees when disabled by injury intentionally or accidentally inflicted or caused by or in consequence of the due performance of official duties or in consequence of official position held. Full pay is admissible for the first 120 days and half pay thereafter. The leave may be combined with any other kind of leave due and admissible, provided the total period of leave does not exceed 24 months. There are demands to remove the ceiling limit of 24 months–the duration of leave may be left to the discretion of doctor and full pay paid for the entire period.

Analysis and Recommendations : There are three different kinds of leave admissible to civilian/defence employees which are granted for work related illness/injuries–Hospital Leave, Special Disability Leave and Sick Leave. It is an established worldwide practice that employees who suffer illness/injuries that are attributable to/aggravated in the course of their duty need to be adequately compensated. However, due to the inherent difference between the nature of duties of civilians and uniformed forces, a distinction needs be made in the level of compensation provided. Having said that, there is some similarity in the risks faced by different uniformed forces, and consequently parity amongst them may be considered as far as this leave is concerned.

The following is, therefore, recommended:
1. Hospital Leave, Special Disability Leave and Sick Leave should be subsumed in a new Leave named Work Related Illness and Injury Leave (WRIIL).
2. Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.
3. Beyond hospitalization, WRIIL will be governed as follows:
a. For Civilian employees, RPF employees and personnel of Police Forces of Union Territories: Full pay and allowances for the 6 months immediately following hospitalization and Half Pay only for 12 months beyond that. The Half Pay period may be commuted to full pay with corresponding number of days of Half Pay Leave debited from the employee’s leave account.
b. For Officers of Defence, CAPFs, Indian Coast Guard: Full pay and allowances for the 6 months immediately following hospitalization, for the next 24 months, full pay only.
c. For PBORs of Defence, CAPFs, Indian Coast Guard: Full pay and allowances, with no limit regarding period.
4. In the case of persons to whom the Workmen’s Compensation Act, 1923 applies, the amount of leave salary payable under WRIIL shall be reduced by the amount of compensation payable under the Act.
5. No Earned Leave or Half Pay Leave will be credited during the period that employee is on WRIIL.

Study Leave : Presently, Study Leave may be granted to all government employees with not less than five years’ service for undergoing a special course consisting of higher studies or specialized training in a professional or technical subject having a direct and close connection with the sphere of his duties as a civil servant. It is limited to 24 months, except for CHS officers who are allowed 36 months. No demands have been received regarding this leave. Accordingly, status quo may be maintained.

Source:http://7thpaycommissionnews.in/7th-pay-commission-recommendations-on-leave-and-holidays/

Govt not worried about fiscal deficit but 7th Pay Commission burden to stay for 2-3 years: Jaitley

Govt not worried about fiscal deficit but 7th Pay Commission burden to stay for 2-3 years: Jaitley

New Delhi: Finance Minister Arun Jaitley today said he was not worried about fiscal deficit and government would be able to meet its target despite additional outgo towards the implementation of the 7th Pay Commission.

He admitted however that the impact of implementing the pay commission's recommendations, which will result in an additional annual burden of Rs 1.02 lakh crore on exchequer, would last for two to three years.

"I am not particularly worried about the fiscal deficit target," he said while replying to questions on the impact of the recommendations on public finances at the HT Leadership Summit.

He further said that besides achieving the target, the government has also been able to improve the quality of fiscal deficit. The government proposes to bring down the fiscal deficit to 3.9 percent of GDP in 2015-16, 3.5 percent in 2016-17 and 3 percent by 2017-18.

"If you achieve a fiscal deficit by either cutting down expenditure or withholding tax returns, then you may strictly have statistical figure, but the quality of the fiscal deficit will always be suspected...we have concentrated on the quality of the fiscal deficit and we will probably be able to maintain it," he added.

As regards the impact of the Pay Commission award to Central government employees, Jaitley said the normal rule is that the expenditure on salary and pension should be 2.5 percent of the Gross Domestic Product.

The ratio will deteriorate in the initial years with the implementation, he said.

However, "...as the base of the GDP increases, by the third or the fourth year, the spikes come down and

(thereafter) you reasonably reach that 2.5 percent figure back... These pressures will be for the next 2-3 years," the minister said.

Jaitley expressed optimism that the economy would grow by 7.5 percent in the current fiscal and the rate would accelerate further in the coming years resulting in more revenues for the government.

Answering questions on rate cut on small savings scheme to bring them in line with the market rates, the Finance Minister said the government has to act "cautiously" with a sense of "political pragmatism".

Observing that even Reserve Bank Governor Raghuram Rajan publicly suggested cut in small savings rate, Jaitley said, "We as an elected government have to look at it, in addition to the economic principles, with a sense of political pragmatism, because there a lot of people who are depending on it.

"Some schemes were just launched, for instance the girl child scheme that gives the highest interest rate in the small saving scheme... (This was) to incentivise the people to invest in the name of the girl child. If after one year you immediately slash it down radically, (it) may not be very politically prudent...you have to move in that direction but you have to move a little cautiously."

"I am not particularly worried about the fiscal deficit target," he said while replying to questions on the impact of the recommendations on public finances at the HT Leadership Summit.

The ratio will deteriorate in the initial years with the implementation, he said.

However, "...as the base of the GDP increases, by the third or the fourth year, the spikes come down and

(thereafter) you reasonably reach that 2.5 percent figure back... These pressures will be for the next 2-3 years," the minister said.

Jaitley expressed optimism that the economy would grow by 7.5 percent in the current fiscal and the rate would accelerate further in the coming years resulting in more revenues for the government.

PTI

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7th CPC Increment : Recommendations on Annual and Promotional Increment

7th CPC Increment : Recommendations on Annual and Promotional Increment

7th CPC Increment : The 7th Pay Commission has recommended on the rate of annual increment is being retained at 3 percent.

Illustrative Examples in Respect of annual increment…

Withholding Annual Increments of Non-performers after 20 Years : There is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course. The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted. This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments. The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.

This will act as a deterrent for complacent and inefficient employees. However, since this is not a penalty, the norms for penal action in disciplinary cases involving withholding increments will not be applicable in such cases. This will be treated as an “efficiency bar”. Additionally, for such employees there could be an option to leave service on similar terms and conditions as prescribed for voluntary retirement.

Grant of First Annual Increment in Recruits Pay : The main demand of the Services in this connection is that the existing stipulation that next increment will be granted from the date of attestation or mustering be done away with. They have pointed out that trades whose skill requirements are low and whose entry level qualifications are lower invariably get attested or mustered earlier and thus are entitled to the next annual increment earlier than trades whose training period is longer.

Analysis and Recommendations : The Commission is of the view that grant of next increment in the case of recruits should not place those with higher entry level qualifications at a disadvantage. The Commission, accordingly recommends that the date of enrolment should be reckoned for the purposes of first increment for all recruits who are finally successfully attested/mustered.

Authority: www.7cpc.india.gov.in

Saturday, 5 December 2015

7th Pay Commission: Fresh hope for realty demand

After witnessing sliding profits over the past three years, the residential real estate market is in desperate need of a stimulus to revive the sector.

While the government’s decision to relax the foreign direct investment norms in real estate last month is expected to play a critical role in addressing the concerns on the supply side, the recommendations of the Seventh Central Pay Commission is being termed a potential game changer on the demand side. The pay panel proposes a hefty salary and pension hike for Central government employees and pensioners.

According to experts, with the real estate market burdened with a large volume unsold inventory, just removing the supply-side bottlenecks won’t help as the lack of demand will keep the markets under pressure. However, the demand might witness a surge as a higher disposable income in the hands of a substantial chunk of the population might just motivate investment in residential property.

A report prepared by Neelkanth Mishra, Prateek Singh and Ravi Shankar of Credit Suisse says that the Pay Commission recommendations will have a significant impact on the real estate cycle in small towns as more than 80 per cent of Central government employees reside in tier II, III cities.

The Pay Commission boost

The report analysing the impact of the recommendations point out that as state governments and Central PSUs follow through the CPC (recommended hike of 23.6 per cent) proposals, almost 3.4 crore individuals (employees and pensioners) will witness increase in their incomes. The housing and transportation sectors will be the biggest beneficiaries of the rise in income and spending capacity of government employees.

“Altogether around 80 per cent of the beneficiaries would see an increase of less than Rs10,000 per month and account for 50 per cent of the payout. The rest would get around Rs 24,000 more every month on an average,” said the report.

According to Credit Suisse, out of the total state and central employees, the 6O lakh, who will see around Rs 24,000 salary increase per month, are likely to be instrumental in lifting the housing sector demand.

The National Sample Survey Organisation (NSSO) classifies the country’s population into 12 classes (fractiles) demarcated by monthly per capita income.

The report states that while spending on food and transportation goes up the most when disposable incomes rise for those between the 10th and 11th fractiles, it also pointed to the fact that as households move from the 11th to the 12th fractile (8.3 per cent of households), the spend on rent rises 3.1 times and there is a similar impact on home ownership too.

“Most of this impact is likely in the smaller cities (only 20 per cent of central government employment is in the tier I cities). The Pay Commission recommendation, in our view, is an important milestone in the real-estate cycle in the smaller towns, recent weakness was likely the effect of the last pay commission fading,” said the Credit Suisse report.

While the Centre may take six months in implementing the recommendations, a 3-5 per cent higher increase than recommended would take the hike in the comprehensive wage bill to Rs 4.5-4.8 lakh crore which is expected to be spread over a period of two years starting from June 2016 as states and Central PSUs take their decisions. “We estimate 75 per cent of the increase should occur in FY17, and the rest in FY18,” said the report.

While the report says that impact on housing and real estate will be substantial and lift demand, there are some who feel that the benefits may not be huge.

“I think the Pay Commission recommendations will also be inflationary so the actual benefit that may come to employees may only be around 10 per cent as against a hike of 23.5 per cent. And if the developers decide to increase the price then it would be a dampener,” said Samantak Das, chief economist & national director, Knight Frank India.

The supply side effect

While the government had, in 2005, eased the foreign direct investment norms for real estate sector and allowed 100 per cent FDI in townships, housing and built-up infrastructure and construction developments, it had imposed certain conditions.

However, with ambitious targets like ‘Housing for All’ and Smart Cities in the pipeline, what the government needs is a thriving real estate market and thus, in November, the Centre decided to do away with some of the restrictive conditions.

While the earlier policy required a minimum of 20,000 square meters of development and a minimum capital of $5 million, the government has now removed those conditions and it is expected that these will result into higher investment flow into city-centric developments where the condition of 20,000 square metres was a dampener.

Along with this, the need to bring in investment within six months of commencement of the project has also been removed.

Das, however, said that FDI will not flow in till the time demand for residential housing picks up as investors will only come if the market is good.

“While the office market has picked up, residential market is expected to take at least 12 more months to pick up. The market is still full of unsold inventory and till the time it gets absorbed, the sector will remain weak,” said Das.

Source POTools blog

Government will cut rates on small savings cautiously: FM Arun Jaitley

Government will cut interest rate on small savings "cautiously" so as to protect vulnerable sections like retired employees, Finance Minister Arun Jaitley said today while expressing confidence that 7th Pay Commission report will not upset the fiscal deficit targets.

He said the government is using more than three-fold increase in cess on petrol and diesel to fund infrastructure projects like highways, but it will be a challenge to fund higher social sector spending due to increased outgo on salary and pension.

Speaking at the Hindustan Times Leadership Summit, he cited the example of the girl child scheme launched last year to saying that "if after one year you immediately slash it (interest rate) down radically, (it) may not be very politically prudent and therefore you have to move in that direction but you have to move a little cautiously".

As a lot of people depend on small savings schemes, the Finance Minister said, "we as an elected government have to look at it in addition to the economic principles with a sense of political pragmatism".

Bankers have passed on as little as 20 per cent of the biggest rate cut effected by RBI since 2009 as they fear becoming uncompetitive to small savings like PPF and Post Office deposits.

Most small saving instruments pay an interest rate of 8.75 per cent, compared to 7.5 per cent on deposits at SBI.

Bank deposit rate has to be lowered if the lending rate is brought down to allow transmission of 1.25 per cent interest rate cut by RBI.

aitley said the impact of the 7th Pay Commission recommendations for higher salary and pension for central government employees, which will result in an additional annual burden of Rs 1.02 lakh crore on exchequer, would last for two to three years.

The recommendations are to be implemented from January 1.
"I am not particularly worried about the fiscal deficit target," he said.

The government, he said, was confident of keeping spending within the the targeted fiscal deficit of 3.9 per cent for the current fiscal year ending March 31, 2016. Besides meeting the target, the quality of fiscal deficit too will be improved, he added.

Source:-The Economic Times

Health Insurance Scheme 7th CPC Recommendations

In this backdrop, the Commission opines that health insurance for the government employees and pensioners remains the most optimal route for ensuring complete coverage for all employees, pensioners and their dependents in the long run. The IV CPC had suggested that feasibility and modalities of an Insurance Scheme for government employees in lieu of medical reimbursement may be considered by the government. The VI CPC had recommended introduction of a health insurance scheme for Central Government employees and pensioners.

It had recommended that for existing employees and pensioners, the scheme should be available on a voluntary basis, subject to their paying the prescribed contribution. It had also been recommended that the health insurance scheme should be compulsory for new government employees who would be joining service after the introduction of the Scheme.

Similarly, it had recommended that those retiring after the introduction of the insurance scheme would be covered under the Scheme.

9.5.16 The Commission observes that in view of the recommendations of the earlier Pay Commissions and various high power committees, the government has been contemplating the introduction of a health insurance scheme on Pan-India basis. The Commission notes that although the Committee of Secretaries had given its ‘in principle’ approval way back in 2011,and an amount of ₹ 2,061 crore had been earmarked under the XII Five Year Plan, the Scheme has still not been implemented.

9.5.17 The Commission notes that given the tardiness in the introduction of the long awaited Insurance Scheme, as already mentioned earlier in this chapter, the pensioners residing outside CGHS area will continue to be at a disadvantage, in terms of medical facilities, compared to their counterparts residing in CGHS areas. As stated earlier in this chapter, according to existing provisions, pensioner residing outside CGHS area but subscribing to CGHS for OPD/IPD can avail medical facility from any hospital–private or public or empanelled under CS (MA)/ECHS–in his/her own city. However, in such cases, the pensioners have to make upfront payment to the hospital and claim reimbursement later. The Commission feels that this could be a limiting factor for many pensioners who may not have the resources to pay hospital expenses upfront. The Commission notes that under CS (MA) Rules/ECHS, there are empanelled hospitals in every part of the country, at least in all major locations. In this backdrop, after identification of some major centres/cities based on minimum population threshold of pensioners, these hospitals could be empanelled by CGHS as well, for extending medical facilities on a cashless basis.

Considering all the issues, the Commission makes the following recommendations:

i. The Commission strongly recommends the introduction of health insurance scheme for Central Government employees and pensioners. In the interregnum, for the benefit of pensioners residing outside the CGHS areas, the Commission recommends that CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis. This would involve strengthening of administrative capacity of nearest CGHS centres. However, this step will go a long way in ameliorating the pending grievances of these pensioners.

ii. The Commission recommends that the remaining 33 postal dispensaries should be merged with CGHS. The Commission further recommends that all postal pensioners, irrespective of their participation in CGHS while in service, should be covered under CGHS after making requisite subscription.

iii. Currently, there are various health care schemes in the Central Government catering to specific sets of employees. For example, apart from CGHS, there are Ex-Servicemen Contributory Health Scheme (ECHS) and Railways Employees Liberalized Health Scheme (RELHS) which cover ex-servicemen and Railway employees/pensioners, respectively. Although the patterns in these schemes vary, a combined entity of CGHSECHS-RELHS would result in a very strong network of health facilities for the Central Government employees across the length and breadth of the country. The Commission recommends that possibility of such a combined network of various medical schemes should be explored through proper examination.

Source: Potools blog

Barclays Bank London Wishes to Tie Up with India Post

Posted: 04 Dec 2015 08:58 AM PST

Barclays Plc is seeking a partnership with India’s postal department, which won preliminary approval to set up a payments bank, as the U.K. bank strives to widen its reach in the South Asian country.

A partnership with India Post, as the service is known, would give Barclays “access to areas where we do not have a physical presence,” George Cherian, a Mumbai-based spokesman for the bank, said by phone on Friday.

The U.K. bank and Deutsche Bank AG are among 17 firms including three insurers that want to use the postal service’s network to deliver financial services, according to a person familiar with the matter, who asked not to be identified as the information is private. A unit of the department will offer the services initially through 500 branches and will later expand the operation across the country, the person said.

A tie-up opens up the prospect for lenders and insurers to distribute products and offer financial services through a portion of a network that has about 155,000 post offices across India. By comparison, State Bank of India is the nation’s largest lender by branches with 16,400 outlets.

The Department of Posts was one of 11 entities that won “in-principle” approval from the central bank in August for a payments banking license, which allows companies to collect deposits, facilitate money transfers and sell insurance and mutual funds. Through these lenders, Prime Minister Narendra Modi hopes to eventually tap into savings from rural areas that currently have limited access to banking services, and bolster credit growth in the world’s second-most populous nation.

Banks such as Barclays could also use the postal network to provide cash-management services to clients. In cash management, a bank collects and disburses cash, and manages surplus funds to support a corporate customer’s day-to-day operations.

Linus Chettiar, a Mumbai-based spokesman for Deutsche Bank, couldn’t immediately comment. Postal department spokesman N. N. Kaul didn’t answer two calls to his mobile phone.

State Bank of India, Punjab National Bank, IDBI Bank Ltd. and Yes Bank Ltd. are among other lenders that are seeking to partner with India Post, according to the person.

Source: Post bank of India

Modified Assured Career Progression (MACP)-7th Pay Commission Report

Modified Assured Career Progression (MACP):

i. This will continue to be administered at 10, 20 and 30 years as before.

ii. In the new Pay matrix, the employees will move to the immediate next level in the hierarchy.

iii. In the interest of improving performance level, the benchmark for MACP has been recommended to be enhanced from ‘Good’ to ‘Very Good.’

iv. The Commission has proposed withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service. (paras 5.1.44-5.1.46)

Withholding Annual Increments of Non-performers after 20 Years

There is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course. The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted. This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments. The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.