7th Pay Commission proposes 23.55% pay hike for government employees

The 7th Pay Commission proposed the increase in pay, allowances and pension for 4.8 million government employees and 5.5 million pensioners

The previous UPA government appointed the Seventh Pay Commission on 28 February 2014 under chairman, Justice Ashok Kumar Mathur. Photo: HT

New Delhi: The 7th Pay Commission headed by Justice A.K. Mathur has proposed a hefty 23.55% increase in emoluments including pay, allowances and pension for 4.8 million government employees and 5.5 million pensioners, potentially providing a boost to the ailing consumer economy although it seems to have missed an opportunity to reform the hiring process for government services.

The impact on the finances of the centre and subsequently on the finances of state governments may force the governments to reduce their development expenses.

The basic salary hike recommended is 16%, while that of housing rent allowance, other allowances and pensions are 138.71%, 49.79% and 23.63% respectively.

Significantly, the Pay Commission passed on the opportunity to provide a mechanism for formal lateral induction to the government from the private sector. The vexed issue of parity of pay scales for officers from the Indian Administrative Services (IAS) and other civil services cadres such as Indian Revenue Service (IRS) and Indian Police Service (IPS) remained unchanged due to differences in opinion within the Pay Commission.

The previous United Progressive Alliance (UPA) government appointed the Seventh Pay Commission on 28 February 2014 under chairman, Justice Ashok Kumar Mathur.

The central government constitutes the pay commission every 10 years to revise the pay scales of its employees and these are usually adopted by states after some modifications.

The finance ministry had earlier expressed apprehension that the recommendations of the Seventh Pay Commission, expected this month, would significantly increase the revenue expenditure of the government in the next financial year, leaving it less money to spend on building capital assets.

In the medium-term expenditure framework statement laid before Parliament on 13 August, the finance ministry said salary and pension expenditure is expected to rise by 15.8% and 16%, respectively, in 2016-17, which may leave capital expenditure room to grow by no more than 8% during the year.

Total revenue expenditure is expected to jump 8.1% to Rs.16.6 trillion in 2016-17 against a budgeted growth of 3.1% in 2015-16. During the same period, growth in capital expenditure is expected to slow to 8%, at Rs.2.6 trillion, from a budgeted growth of 25.4%.

The finance ministry said award of the Seventh Pay Commission’s suggestions, with their consequent impact on government finances, “poses a risk”.

Still, it could be just what is needed to spur a revival of the consumption economy.

Rakesh Biyani, director at Future Group, said more cash in the hands of the middle class will boost consumption. “Better level of disposable incomes will help retailers at large,” he added. If hefty arrears are handed down to employees it “could clearly lead to one-time high-ticket purchases,” he added.

Anuj Puri, chairman and country head at real estate consultancy Jones Lang LaSalle India, said the prospect of increased disposable income in sufficient magnitude could even improve the appetite for buying a home since home-ownership remains one of the top priority for Indian households.

“There is also a lot of interest for buying second homes as investments among those who already have their primary residences squared away. Increased take-home salaries will definitely improve the overall sentiment for the right-priced residences,” he added.

Much like it did in 2008 when it was last announced, a pay revision will likely boost sales of consumer appliances and electronics. Indeed, back then, this helped stave off, albeit temporarily, the effects of the global financial sector on consumer markets.

Nilesh Gupta, managing Director, Vijay Sales, a consumer electronics and durables chain in West India, said additional payouts to government employees will help increase sales of automobiles, two wheelers and other consumer durables. “The festive season saw growth of 15% over last festive and now with the arrears payouts to government employees there will be a further consumption boost,” he added.

Sapna Agarwal in Mumbai and Suneera Tandon in Bengaluru contributed to this story.

Source Live Mint

HIGHLIGHTS OF 7TH CPC REPORT -FLASH NEWS FROM NDTV

14.7%  HIKE FOR CENTRAL GOVT EMPLOYEES

MINIMUM BASIC PAY START AT 18000 MAXIMUM 2.25 LAKHS

OVERALL INCREASE IN PAY  ALLOWANCES AND PENSION TO BE 23.55%

52 ALLOWANCES ABOLISHED 

RISK AND HARDSHIP ALLOWANCE INTRODUCED

NDTV NEWS

Source CGE portal blog

7th CPC Report is now available

Report of the Seventh Central Pay Commission  is available on the website of 7th CPC

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Seventh Pay Commission to submit report on November 19 (Tomorrow 19.30 Hrs.)

The Commission has completed its deliberations and will submit the report to the Government of India on 19.11.2015 at 19:30 hours Source :http://7cpc.india.gov.in/

UPSC Combined Defence Services (CDS) Examination - I Notification 2016

Union Public Service Commission (UPSC) published notification for recruitment for Various Vacancies in Indian Military Academy, Indian Naval Academy, Air Force Academy and Officers Training Academy through Combined Defence Services Examination (I), 2016 (Including SSC Women (Non-Technical) Course).


Examination Notice No.: 1/2016 CDS (I)

Posts :
Indian Military Academy: 200 Posts
Indian Naval Academy: 45 Posts
Air Force Academy: 32 Posts
Officers Training Academy (for Men): 175 Posts
Officers Training Academy (for Women & Non - Tech.): 05 Posts

Total no of Posts: 457

Educational Qualification: Degree from recognized University or equivalent for IMA & Officers Training Academy, Degree in Engineering & Degree from recognized university/ institution for Indian Naval Academy, Degree of a recognized university (with Physics and Mathematics at 10+2 level) or Bachelor of Engg for Air Force Academy.

Age Limit :

Sl no	Name of the Academy	Age Limit
1.	IMA	Born not earlier than 02-01-1993 and not later than  01-01-1998. (Unmarried male candidates)
2.	Indian Naval Academy	Born not earlier than 02-01-1993 and not later than  01-01-1998. (Unmarried male candidates)
3.	Air Force Academy	20-24 years as on 01-01-2017 (Born not earlier than 02-01-1993 and  not later than  01-01-1998) (Unmarried male candidates)
4.	OTA (SSC Course for Men)	Born not earlier than 02-01-1992 and  not later than  01-01-1998.(Male Candidates  (Married or Unmarried))
5.	OTA (SSC Women Non-Technical Course)	Born not earlier than 02-01-1992  and not later than  01-01-1998.

Examination Fee: Candidates need to pay Rs. 200/- through the following modes. No fee for Female/ SC/ ST candidates.

• Pay by cash Mode: Candidates have to pay the fee by depositing the money in any Branch of SBI on or before 03-12-2015 by 23:59 hrs.
• Net Banking Mode: Candidates have to pay the fee by using net banking facility of SBI (at relevant states).
• Online Mode: Candidates have to pay the fee by using Visa/ Master Credit/ Debit card on or before 04-12 by 23:59 hrs

How to Apply: Candidates are required to apply only, by using the website www.upsconline.nic.in

Notification : Click Here

Apply Online : Click Here

Overview of UPSC CDS I Exam : Click Here

Important Date:
Starting date of online application: 07-11-2015
Last date of online application: 04-12-2015
Written Examination: 14-02-2016 (Sunday)
Download e-Admit card: 3 weeks before the commencement of the examination.

Source:  Sa Post

Indians still prefer post office schemes

Post office savings schemes, a traditional favourite with Indians, are likely to retain their popularity, despite the launch of various schemes by banks and the government, including the Pradhan Mantri Bima Suraksha and Jeevan Jyoti. However, it is still too early to arrive at any conclusion.

“Post office savings are traditionally used by the masses who cannot get access to banks. It will continue to be popular and flourish with the addition of more technology like those offered by bank,” Kavery Benarjee, secretary, department of posts, told HT.

Going forward, India Post will introduce core banking services across India. The service is currently available only in select post offices.

“The growth in accounts is reflection of the faith and trust that consumers have on us despite banks opening new branches and introducing new schemes,” Banerjee said.

Post office schemes are attractive since only 5% of the corpus is invested in savings account. The remaining 95% is put in monthly income schemes and long-term deposits with higher rate of interest, she said.

Moreover, the new schemes introduced by the government are being extended to post office savings account holders.

Most of the Jan Surkasha schemes are already available at post offices. Post office account holders will also be able to subscribe to the Atal Pension Yojana (APY) in the next 4-5 days without any overdraft facility, similar to the Pradhan Mantri Jan Dhan Yojna.

“We are not mandated to give overdraft facility,” Banerjee said.

Account holders will be given ATM cards, besides availing money-transfer facility and anywhere anytime banking.

Banerjee is also confident that account holders will be able to encash a certificate anywhere in India within 15-20 minutes.

Source: hindustantimes, 30.10.2015

Courtesy SAPost blog

Counting of past service for admissibility in old pension scheme, new pension scheme, pay protection and leave accumulation -Clarification

Counting of past service for admissibility in old pension scheme, new pension scheme, pay protection and leave accumulation to All India Services officers: clarification by DoPT dated 04.11.2015

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Source SA Post Blog

“Expected DA Jan 2016” gets carefully scrutinized by the 7th Pay Commission

“Expected DA Jan 2016” gets carefully scrutinized by the 7th Pay Commission

"This time, it is not just the employees, but the members of the 7th Pay Commission too who are very eager to know about the Dearness Allowance from January 2016. "

'Expected DA January 2016' has the honour of making not just the Central Government employees and pensioners curious; it has even got the 7th Pay Commission on the list of eagerly waiting audience.

It is a well-known fact that Central Government employees love to read all kinds of information, analyses, orders, and predictions about the Dearness Allowance. Here are our fact- and trend-based predictions for the additional Dearness Allowance which will be announced from 01.01.2016. 

Calculation of DA : The Government of India presently calculates the level of inflation for purposes of grant of dearness allowance to Central Government Employees on the basis of the All India Consumer Price index Number for Industrial Workers (2001=100) (AICPI). The twelve monthly average of the AICPI (2001 base) as on 1st January and 1st July of each year is used for calculating the Dearness Allowance (DA).

Each month, the Central Government’s Labour Bureau releases price-related data called the CPI (IW) on Base Year 2001=100. 78 important cities and towns from all over the country were selected and the fluctuations in prices of essential commodities in all these places are noted. Based on these data, the points, abbreviated as AICPIN, are calculated. The Pay Commission will, in its report, explain in detail how the DA is calculated based on these statistics, known as the ‘DA Determination Formula.’

The Dearness Allowance of not just the Central Government employees, but also the state government employees, is being paid as per the method prescribed by the 6th Pay Commission. The DA calculation method was implemented from January 2006 and will continue to be in effect for ten years, until December 2015. This DA determination method comes to an end now due to the constitution of the 7th Pay Commission.

Implementation of 7th CPC : The 7th Pay Commission is expected to submit its recommendations to the government before December 2015. Its recommendations are expected to be implemented from January 2016 onwards. 

Dearness Allowance after 1.1.2016 : After 01.01.2016, Dearness Allowance will be issued based on the prices of essential commodities,as per the method recommended by the 7th Pay Commission. For example, the 6th Pay Commission’s recommendations were implemented from January 2006 onwards. The DA for the months of January 2006 to June 2006 was not paid. DA was issued only from the month of June 2006. 

DA Calculation Method of the 7th Pay Commission : Successive Pay Commissions have made changes to the DA formula, suggesting their own methodology for determining the quantum and frequency. The 7th Pay Commission will also expected to recommend a different methodology to determine the DA.

One cannot say for sure that the 7th Pay Commission will follow the method that was recommended by the 6th Pay Commission. It could modify the current CPI(IW) BY 2001-100 statistics index. It could also change the current “Linking Factor 115.76” method. It is difficult to predict how these factors would differ in the recommendations of the 7th Pay Commission report. 

Expected DA January 2016 : The Dearness Allowance from January 2016 will be calculated based on the AICPIN points for the six months starting from July 2015. The AICPIN points of only three months have been released as of now. Expected DA for January 2016 can be calculated only after the AICPIN points of October, November and December are released. On a fair guess, assuming that the AICPIN points remain the same for the remaining three months, one can expect Dearness Allowance of 6 percent and the total Dearness Allowance will increase by 125 percent. Unless there is a dramatic change in the AICPIN points, the total Dearness Allowance will very likely be around 125 percent. 

The relationship between the 7th Pay Commission and the DA : The quantum of Dearness Allowance mentioned above is an important aspect for 7th Pay Commission. It is based on this number that the much awaited Revised Basic Pay will be calculated. For instance, the amount of total DA percentage will be added to the current Basic Pay and to this, the weightage to be reommended by the 7th Pay Commission will be added and the new Basic Pay will be arrived at. 

The AICPIN points for the month of December 2015 will be released only in January 2016. Only then will it be possible to accurately calculate the Dearness Allowance from January 2016.

The 7th Pay Commission is expected to submit its report to the Central Government by December 2015. It remains to be seen how the 7th Pay Commission has calculated the final Dearness Allowance percentage.

Source:http://90paisa.blogspot.in/2015/11/expected-da-jan-2016-gets-carefully.html#more

Post Office to Act as Financial Literacy Hub in Rural Area

The government is looking to utilize the services of postmen to teach people in rural areas how to use banking services and access various state-sponsored financial inclusion schemes. The finance ministry is working on developing a structured programme as part of a new strategy for financial inclusion under which banks will pay a fee to use the services of the postal department.

"The idea is to turn a post office into a financial literacy hub. We will organize weekly literacy camps and selected post office employees will undergo a structured training programme developed by banks on financial literacy," said MS Ramanujan, member (banking and HRD), Department of Posts.

India Post is among the 11 successful entities that recently got in-principle approval for a payments bank license from the Reserve Bank of India. Tentatively named as 'India Post Payments Bank,' the entity will have an initial capital of Rs 300 crore.'

"We are looking to leverage our entire postal network," said Ramanujan. He said banks will pay a small fee to use the services of the postal department depending on the location, details of which are being worked out.

A senior finance ministry official said the government is looking to focus on financial literacy as part of its financial inclusion programme. "Now that the accounts have been opened, we want to ensure that people take advantage of all other schemes, including soft loans under the MUDRA Yojana," said the official, who did not wish to be named.

So far, about 18.86 crore accounts have been opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), with deposits of nearly Rs 25,700 crore.

"Around 40% of these accounts have zero balance. We want them to develop a habit of banking, so that they can have a credit history and use other services," the official said.

"Around 40% of these accounts have zero balance. We want them to develop a habit of banking, so that they can have a credit history and use other services," the official said.

The Centre had last year launched three social security programmes - the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY) - to bring the excluded under the fold of formal financial services. The drive is billed as 'Jandhan to Jansuraksha' or people's money to public security.

The government has set a target of Rs 1.22 lakh crore for loans to be given by state run banks to promote new entrepreneurs under the Pradhan Mantri Mudra Yojana, which will seek to "fund the unfunded".

Courtesy: The Economic Times

Source:  Post Bank Of India

BSNL PRODUCTS NOW AT POST OFFICES

Starting November 1, BSNL products like SIM card, top up and recharging vouchers would be available at Post Offices across the State.

The Bharat Sanchar Nigam Limited (BSNL) signed an MoU with the Department of Posts to this effect on Thursday here.

“As the BSNL is providing telecom services and the Department of Posts is providing postal services in the urban and rural areas, we felt for distribution of BSNL products at the India Post outlets.” Odisha Circle Chief Post Master General (CPMG) Tilak De told reporters here.

India Post would provide BSNL services to walk-in customers from November 1 from the undivided Cuttack district, he informed. This facility would be extended to all the districts of the State by the end of this year.

 “With this facility, the BSNL will be able to reach out to the remotest part of the State through the India Post outlets,” De said.

BSNL Odisha Circle Chief General Manager Bijoyananda Mishra said the reliability and transparency has been the key benchmark for both India Post and BSNL and, therefore, customers would be able to appreciate the synergy between the India Post and the BSNL.

A technology experience centre was also inaugurated at the BSNL Bhawan on the occasion. This centre would showcase the BSNL technologies that are used in various telecom services.

Source : www.dailypioneer.com.

Courtesy:  AIAIPASP blog

Notification for “Republic Day 2016- Stamp Design Competition”

Notification for “Republic Day 2016- Stamp Design Competition”

Click here to Download notification

Department of Posts is holding a Stamp Design Competition. The theme of the competition is “Vibrant India”.

Terms and Conditions to participate in “ Republic Day 2016- Stamp Design Competition”

1. Entries are invited for ‘Republic Day 2016- Stamp Design Competition’.The theme of the competition is “Vibrant India”. The participants are to make an original design on this subject (should not be copy of picture painted by someone else).

2. Any citizen of India can participate in this contest. The design could be in ink, water, colour, oil colour or any other medium (Computer printed/ printout will not be allowed). The design submitted should be such that can be depicted on the stamps in a visually appealing manner so as to be of interest to philatelic collectors.

3. Participants are free to use drawing paper, art paper or any other type of white paper of A4 size.

4. The following particulars should be written legibly on the reverse of the design:

5. An undertaking stating that ‘The artwork submitted is original and no copyright issues are involved’ should be sent along with the entry. In case of any legal dispute related to copyright issue, Department of Posts will not be liable for the same.

6. The design should be sent through “Speed Post” only, in 4 size envelope. The participants should mention “Republic Day 2016- StampDesign Contest” on the envelope in which the drawing is sent.

7. Selected designs will be considered for use on stamps and other philatelic material. The prize money will be as follows:-

1. First prize Rs. 10,000
2. Second prize Rs. 6,000
3. Third prize Rs. 4,000

8. The entries should reach on following address by 30.11.2015. The entries received after last date of receipt will not be entertained.

To,
ADG (Philately)
Room No. 108(B), Dak Bhawan
Parliament Street, New Delhi-110001

Source:  POTools blog