Common Use of Function Key (F1 to F12)in Windows

You might be Using Windows since long time but i am sure majority of you guys don’t know all the features and Uses of F1-F12 keys on your keyboard. We all know Common shortcuts like CTRL+C to Copy and CTRL+V to Paste, But you might not know what F1, F2,F3…….F12 keys actually do and where and when to use them.

In this article we will see Common features and Uses of F1-F12 keys , and also how these keys can be used with the Combination of CTRL and ALT keys.

USES OF F1 KEY:

• F1 key almost everywhere is used for “Help”. if you are using windows OS and want help anywhere then press F1 key, this will open up help window for you.
• Sometimes F1 key is used to enter the BIOS (press F1 when your computer is about to boot).
• Combination of Win + F1 keys will open the “Help and Support» Microsoft Windows.

USES OF F2 KEY:

• Rapidly rename the chosen file or folder. Works in all adaptations of Windows.
• Alt + Ctrl + F2 – Opens the Document as a Microsoft Word.
• Ctrl + F2 – Opens the Preview window in Microsoft Word.
• Frequently to enter the BIOS.

USES OF F3 KEY:

• In the MS-DOS charge line or in Windows, press F3 to rehash the last summon.
• Win + F3 – Advanced Search window opens in Microsoft Outlook.
• Shift + F3 – Changes the content in Microsoft Word, from upper to lower case or capital letters at the start of each one expression.
• In the event that I am not mixed up it is the F3 key which will cause the Application«Control» computers Apple, running Mac OS X.

USES OF F4 KEY:

• This opens the location bar, in the event that you press F4 in Windows Explorer and Internet Explorer.
• Rehash the last activity (MS Word )
• Ctrl + F4 – Closes the window open in the present window, for example, a tab in the program
• Alt + F4 – Closes the system window in Windows.

USES OF F5 KEY:

• Refreshes the present page (works in all advanced programs), and additionally redesign the desktop or open organizers in Windows.
• Running a slide demonstrate in Powerpoint.

USES OF F6 KEY:

• Move the cursor in the location bar (additionally works in numerous advanced programs).
• Ctrl + Shift + F6 – opens Document in Microsoft Word

USE OF F7 KEY:

• Mostly used for spelling and grammar in a document programs Microsoft (Word, Outlook, etc.)

USE OF F8 KEY:

• Pressing F8 key while your PC is about to boot will result into booting your PC in Safe mode.

USE OF F9 KEY:

• The F9 key does not have any functionality in Windows. It may, however be used in some individual programs. To find out if it is available in the program you are using, bring up the program’s help screen and type in the words function key.

USES OF F10 KEY:

• Activates “Menu” in the open organizer window.
• Shift + F10 – works same as the right mouse click.
• Pressing F10 while your system is booting will show you BIOS Information.
• F10 is used to enter the hidden recovery partition on computers Sony.

USE OF F11 KEY:

• F11 Key will take you to Full screen mode and it can be used and work in any Browser.

USES OF F12 KEY:

• Opens the “Save As” in Microsoft Word.
• Shift + F12 – Saves a document in Microsoft Word.
• Ctrl + Shift + F12 – Prints a document in Microsoft Word.
• F12 key will open up Inspect element box in any Browser.

Fn + F1 or F2 or …. F12 keys will normally do the task that is Printed on the respective keys, This is basically for Laptop Users.

With this it Concludes my list of uses of F1-F12 keys in windows, if you know any more uses then please add to this article by Commenting Below.

Source : Sa Post

7th Pay Commission recommendation on – Children Education Allowance (CEA)

8.17.11 CEA is paid to government employees to take care of schooling and hostel requirements of their children. The rates of CEA are double for a differently abled child.

8.17.12 Many demands have been received regarding CEA. It has been requested that the amount be suitably raised and CEA should be extended for Graduation/Post Graduation level studies also. The Commission has received an overwhelming number of requests for simplification of the procedure for reimbursement.

Analysis and Recommendations

8.17.13 Before VI CPC recommendations, the scheme was known as Children Education Assistance and provided at the following rates:-

8.17.17 On the whole, the Commission is of the view that quantum of CEA should be calibrated in such a manner that the main objective is met without the government entering into the field of subsidizing private education. Hence, taking into account the various items of expenditure that are reimbursed as a part of this allowance, the following is recommended:-

Simplification of Procedure for Reimbursement. This is a major area of concern. Many representations have been received by the Commission wherein employees have stated that due to cumbersome procedures, reimbursement has been held up for years. Another issue is the kind of voucher which will be accepted and which kind of voucher will not. The issue has been examined, and the apprehensions expressed are not without merit. 

It is recommended that reimbursement should be done just once a year, after completion of the financial year (which for most schools coincides with the Academic year). For CEA, a certificate from the head of institution where the ward of government employee studies should be sufficient for this purpose. The certificate should confirm that the child studied in the school during the previous academic year. For Hostel Subsidy, a similar certificate from the head of institution should suffice, with the additional requirement that the certificate should mention the amount of expenditure incurred by the government servant towards lodging and boarding in the residential complex. The amount of expenditure mentioned, or the ceiling as mentioned in the table above, whichever is lower, shall be paid to the employee.

Source : SA Post blog

One More Clarification Regarding NJCA's Stand On New Pension Scheme (NPS)

QUERY :  Just like the issues of Salary hike, Fitment formula or parity of Pension, the issue of NPS is common to all Central Govt. Departments. In spite of that, this issue appears to be less highlighted. I represent a unit where 80% of the employees belong to NPS and all of us are aware of the pros & cons of the scheme and we are really concerned about our future

Com. S. Das, Circle Secretary, AIPAEA (NFPE), Postal Accounts, Assam Circle, Guwahati.

REPLY :  Thanks for your concern. The problem of NPS employees are well taken care of by the NJCA.  Please see the Press Statement issued by NJCA on 6th July 2016 after taking the decision to defer the strike which is published in confederation website. The last paragraph reads as follows------- "The NJCA particularly notes that the Govt. has set up a separate committee for reviewing the New Pension Scheme, which has been a matter of concern to all employees and workers who are recruited to Govt. services after 01.01.2004." Please also see the para -12 of the Press Communique issued by the Govt. through Press Information Bureau immediately after the Cabinet decision on 29th June 2016 which reads as --------- "Para-12--- The Cabinet also decided to constitute a separate committee to suggest measures for streamlining the implementation of New Pension System (NPS)". Cabinet decision is taken as it is one of the important demand of the Charter of demands of NJCA submitted to Govt. NJCA shall take follow up action on this particular demand as all of us are very much concerned about this important demand. This demand is directly linked to the policy of the NDA Govt. as all of you are aware that it is the previous NDA Govt. which took a Cabinet decision in 2003 to implement New Contributory Pension Scheme to Central Govt. Employees from 01.01.2004.

M. Krishnan 

Secretary General

Confederation

Source: SA Post

40 FAQs and Answers about NPS

Frequently asked Questions & Answers about NEW PENSION SYSTEM (NPS)

1. What is the New Pension System (NPS)?

The NPS is a new contributory pension scheme introduced by the Central Government for employees joined in Government Service on or after 1.1.2004. During the year 2009, the NPS was kept open for public.

2. Who is covered by the NPS?

a. Employees who have joined central government service on or after 01 January 2004 including Railways, Posts, Telecommunication or Armed Forces (Civil), Autonomous Body, Grant-in-Aid Institution, Union Territory or any other undertaking whose employees were eligible to a pension from the Consolidated Fund of India., earlier.


b. This contribution pension scheme is also open to any Indian citizen between the age of 18 and 55.

3. I am covered by the NPS. Can I contribute to the GPF?

No. The General Provident Fund ( Central Service) Rules, 1960 is not applicable for employees covered by NPS.

4. I Am covered by the NPS. Am I eligible to Gratuity?

No. You will not be eligible to Gratuity.

5. How does the NPS work ?

When you join Government service, you will be allotted a unique Personal Pension Account Number (PPAN). This unique account number will remain the same for the rest of your life. You will be able to use this account from any location and also if you change your job. The PPAN will provide you with two personal accounts:

A mandatory Tier-I pension account, andA voluntary Tier-II savings account.

6. What is the difference between Tier-I and Tier-II accounts?

Tier-I account: You will have to contribute 10% of your pay in pay band + grade pay + DA into your Tier-I (pension) account on a mandatory basis every month. You will not be allowed to withdraw your savings from this account till you retire at age 60. Your monthly contributions and your savings in this account, subject to a ceiling to be decided by the government, will be exempt from income tax. These savings will only be taxed when you withdraw them at retirement.Tier-II account: This is simply a voluntary savings facility for you. Your contributions and savings in this account will not enjoy any tax advantages. But you will be free to withdraw your savings from this account whenever you wish.

7. How will I contribute to my Tier-I (pension) account?

Every month, the government will deduct 10% of your salary (10% of pay in pay band + grade pay + DA) and automatically transfer this amount to your Tier-I account in your name.

8. Will the Government contribute anything to my Tier-I (pension) account?

Yes. As your employer, the Government will match your contribution (10% of pay in pay band + grade pay + DA) and transfer this amount also to your Tier-I account in your name.

9. Can I contribute more than 10% into my Tier-I account?

Yes. You will be permitted to contribute more than the mandated 10% of pay in pay band + grade pay + DA into your Tier-I account – subject to any ceiling that may be decided by the Government.

10. Will the Government also contribute more than 10% into my Tier-I account?

No. The contribution of the Government will be limited to 10% of your pay in pay band + grade pay + DA.

11. What will happen if I am transferred to another city?

The PPAN number will stay the same and you will be able to use the same account.

12. If I leave Government service before I retire will the Government continue to contribute to my Tier-I account?

No. The 10% contribution by the Government will stop when you leave Government service. However, your savings in your Tier-I and Tier-II accounts will stay in your name and you will be able to continue using these accounts to save for your retirement.

13. What if I die or become permanently disabled during my service?

Additional Relief on death/disability of Government servants covered by the NPS(New Pension Scheme) recruited on or after 1.1.2004 has been discussed in this Office Memorandum No.38/41/06/P&PW(A) Dated 5th May, 2009

14. How will the money be invested?

The money you invest in NPS will be managed by professional fund managers. Currently, you have the choice of picking up one of the following six fund managers: ICICI Prudential Pension Management, IDFC Pension Fund Management, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Funds, and UTI Retirement Solutions. In addition to this there are three schemes for which you have to opt.

Scheme A This scheme will invest mainly in Government bonds
Scheme B This scheme will invest mainly in corporate bonds and partly in equity and government bonds
Scheme C This scheme will invest mainly in equity and partly in government bonds and corporate bonds.

15. Can I switch fund managers if I am not happy with my current fund manager?

Yes, you can switch fund managers. PFRDA, the pension fund regulator, will declare the value of your investment every year in April. At that point of time, if you are not satisfied with the performance of your fund manager, you can switch to another fund manager between May 1 and May 15.

16. What are the charges?

This is where NPS wins hands down against all other modes of creating a corpus to generate income after retirement. The fund management charge of NPS is 0.0009% of the value of the investment, every year. In comparison, pension plans of insurance companies charge 0.75-1.75% as fund management charge, which is 800-2000 times higher. The other expenses charged are also very reasonable.

17. I am covered by the NPS. Do the old Pension Rules apply to me?

No. The Central Civil Service Pension Rules (1972) will not be applicable to you.

18. Who will be responsible for the NPS and for protecting my interests?

The Government has set up a new dedicated regulatory authority known as Pension Fund Regulatory and Development Authority (PFRDA). The PFRDA will be responsible for the NPS and for protecting your interests in the NPS in consultation with Ministry of Finance.

19. Who in the Government will issue me a PPAN account and be responsible for the deductions?

When you join Government service, your Drawing and Disbursement Officer (DDO) will instruct you to fill out a NPS form. You will be required to provide your full professional and personal details including details of your nominee in this form. The DDO will issue you the PPAN number(PRAN) and will also be responsible for all administrative matters related to your NPS accounts including deduction of your contributions, transferring your contributions and the matching contribution of the Government to your Tier-I pension account.

20. What will happen to my contributions to my Tier-I account?

Your monthly contributions, and the matching contributions by the Government into your Tier-I account, will be transferred by the Government in your name to a Pension Fund Manager (PFM). The PFM will invest your contributions on your behalf. In this way, your savings will appreciate and grow over time.

21. Will I be permitted to select more than one Pension Fund Manager to manage my savings?

Yes. If you wish, you will be able to spread your savings across multiple PFMs – where a part of your savings are managed by 2 or more PFMs.

22. Am I guaranteed a certain rate of return?

No return is guaranteed as it is in case of EPF and PPF. The amount of money you make is dependant on how well the fund managers chosen by you perform. But, the extremely low charges in NPS sure give it an edge over the the pension plans of insurance companies.

23. Can I contribute more than 10 into my Tier-I account?

Yes. You will be permitted to contribute more than the mandated 10% of Basic+DA+DP into your Tier-I account – subject to any ceiling that may be decided by the Government.

24. Can I withdraw money from the account?

The NPS offers two accounts: tier I and tier II. Currently only tier I account is available. This is a non-withdrawable account and investments in this keep accumulating till you turn 60. Withdrawal is allowed only in case of death, critical illness or if you are building or buying your first house. In case of death the nominee can get 100% of NPS wealth in a lump sum. He can however continue with the NPS in case he wishes to.

25. What will happen to my savings in the Tier-I account when I retire?

You will be able to withdraw 60% of your savings as a lump sum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.

26. Can I use more than 40% of my savings to purchase the annuity?

Yes. You can use more than 40% of your savings to purchase annuity.

27. What will happen to my savings if I decide to retire before age 60?

You will be required to use 80% of your savings in your Tier-I account to purchase the annuity. You will be able to withdraw the balance 20% of your savings as a lumpsum. The other option is , you can continue to invest in NPS on monthly basis and then purchase annuity using 40% of your savings at the age of 60.

28. Will the annuity also provide a family (survivor) pension?

Yes. You will have an option of selecting an annuity which will pay a survivor pension to your spouse.

29. What will happen to my savings in the Tier-I account when I retire?

You will be able to withdraw 60% of your savings as a lumpsum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.

30. What happens at retirement?

NPS by default sets the retirement age at 60. Once you attain that age, you can use the money that has accumulated to generate a regular pension for yourself. In order to do this, you have to compulsorily buy immediate annuity from a life insurance company with 40% of the money that has accumulated. As explained at the beginning, buying an immediate annuity will assure a regular payment for you. Since a minimum of 40% needs to be used to buy an immediate annuity, a maximum of 60% of the money accumulated can be withdrawn. However, unlike other tax-saving instruments like Public Provident Fund (PPF) and Employees’ Provident Fund (EPF), wherein the amount at maturity is tax-free, in case of NPS this amount is taxable.

31. Whether a retiring Government servant is entitled for leave encashment after retirement under the NPS?

The benefit of encashment of leave salary is not a part of the retirement benefits admissible under Central Civil Services (Pension) Rules, 1972. It is payable in terms of CCS (Leave) Rules which will continue to be applicable to the government servants who join the government service on after 1-1-2004. Therefore, the benefit of encashment of leave salary payable to the governments/to their families on account of retirement/death will be admissible.

32. Why is it mandatory to use 40% of pension wealth to purchase the annuity at the time of the exit (i.e. after the age of 60 years) from NPS?

This provision has been made in the New Pension Scheme with an intention that the retired government servants should get regular monthly income during their retired life.

33. Whether any minimum age or minimum service is required to quit from Tier-I?

Exit from Tier-I can only take place when an inpidual leaves Government service.

34. Whether Dearness Pay is counted as basic pay for recovery of 10% for Tier-I?

As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.

35. Whether contribution towards Tier-I from arrears of DA is to be deducted?

Yes. Since the contribution is to be worked out at 10% of (Pay+ DP+DA), it needs to be revised whenever there is any change in these elements.

36. Who will calculate the interest PAO or CPAO?

The PAO should calculate the interest.

37. What happens if an employee gets transferred during the month? Which office will make deduction of Contribution?

As in the case of other recoveries, the recovery of contributions towards New Pension Scheme for the full month (both inpidual and government) will be made by the office who will draw salary for the maximum period.

38. Whether NPA payable to medical officers will count towards ‘Pay’ for the purpose of working out contributions to NPS?

Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practicing Allowance shall count as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.

39. Whether a government servant who was already in service prior to 1.1.2004, if appointed in a different post under the Government of India, will be governed by the CCS (Pension) Rules or NPS?

In cases where Government servants apply for posts in the same or other departments and on selection they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules, 1972. Since the Government servant had originally joined government service prior to 1-1-2004, he should be covered under the CCS (Pension) Rules, 1972.

40. Will I get a tax deduction for the investment?

Yes, under Section 80CCD of the Income Tax Act investments of up to Rs 1 lakh in the NPS can be claimed as tax deductions. Readers should remember that this Rs 1 lakh limit is not over and above the Rs 1 lakh limit available under Section 80C. In fact, the combined limit of investments made under Section 80C, 80CCD and section 80CCC (for investments made into pension plans of insurance companies) is Rs 1 lakh.

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7th Pay Commission: Government to study demands raised by employee unions

Seeking better pay and higher allowances, at least 33 lakh central government employees threatened to go on strike on July 11.

 Finance Minister Arun Jaitley receiving the report of Seventh Pay Commission from its Chairman Justice A K Mathur in New Delhi. Finance Minister Arun Jaitley receiving the report of Seventh Pay Commission from its Chairman Justice A K Mathur in New Delhi.

The Central Government Wednesday assured representatives of employee unions to look into the issues raised by them, following the implementation of the 7th Pay Commission’s recommendations.
Seeking better pay and higher allowances, at least 33 lakh central government employees threatened to go on strike on July 11.

The union members expressed unhappiness over the Government’s decision to increase the minimum pay to just Rs 18,000. They are currently demanding that the pay be raised to at least Rs 26,000 at a fitment formula of 3.68.

The government on its part has setup a High Level Committee to review the demands. The employees are also demanding withdrawal of the new national pension scheme (NPS), which came into effect from October 2004.

Read at  http://indianexpress.com/article/business/business-others/7th-pay-commission-central-government-employees-demands-strike-2897972/

COMBINED GRADUATE LEVEL EXAMINATION 2016 REVISED SCHEME OF EXAMINATION

Travel by private airlines has been extended only in case of LTC journey(s) to visit Jammu & Kashmir region

Source: KARNATAKA COC web

DoP on the lookout for IPPB CEO, COO

NEW DELHI: THE Department of Posts has asked Punjab National Bank, Canara Bank, Bank of Baroda, Bank of India, Union Bank to recommend board level officers or senior executives, who may be interested in managing the DoP’s payments bank as CEO of India Post Payments Bank (IPPB), on deputation basis.

The IPPB, will be operational from March 2017 with 2,000 employees and 50 branches, which it will  gradually increase to 650 by September 2017. It also plans to have five independent members and four in-house representatives in IPPB. Independent directors together will hold 51 per cent share in IPPB while 49 per cent will be held by the Government.

DoP will follow routine selection processes and recruit the CEO and COO through the Department of Financial Services. “We will have 650 branches co-located with post offices in most cities. We will also link all 1.55  lakh post offices as banking correspondents of IPPB,”said SK Sinha, Secretary, DoP.

My Stamp

Soon an individual or a corporate entity can get their photo or logo printed inside a postage stamp for Rs 12 lakh, the Department of Posts said, a move that is likely to help garner Rs 600 crore for the department.

The move is a step ahead in promoting philately in India. Earlier, India Post only allowed printing of photo or design next to postage stamp on a Rs 300 My Stamp sheet. Such  stamps were allowed for use in general postal mail.

“We have opened up customised printing of ‘My Stamp’ for individuals and corporates. Anyone can get his logo or photo printed inside the stamp for net cost of Rs 12 lakh. There will be 5,000 sheets comprising 60,000 postage stamps,” Sinha said.

My Stamp has so far been issued for Amazon India, Hindustan Aeronautics Limited and proposals are pending from various entities.

India Post is eyeing a jump of about Rs 100 crore in turnover at Rs 141 crore from the philately segment this fiscal and Rs 60 crore from  ‘My Stamp’ initiative.

Source : http://www.newindianexpress.com

For just Rs 300, leave stamp of yourself with India Post

NEW DELHI: You can now have your picture printed on a postal stamp. Be it a picture of a bride and groom or an infant on his first birthday or those of close buddies during a college reunion, the Indian postal department is ready to give a special touch to your cherished moments - a special stamp customised just for you.

And don't worry about the cost -it is as low as Rs 300 for a pack of 12 stamps.

"Philately is one of the core focus areas for the postal department and we have been looking at initiatives that take the postal department closer to the masses," Secretary (Posts) SK Sinha told.

In fact, the initiative has been in the offing for some time, but the postal department has now decided to give it a fillip. The facility is available at key post offices across major towns and cities. And the postal department has now decided to offer the service through the online channel and one can make a booking through the philately section of its website http:www.epostoffice.gov.in "We are receiving a good reaction to the move, and thus it is being offered at more and more locations. The online route is also gaining traction," Sinha said.

While the post office hands out the customised stamps right on the stamp after you hand them over your preferred picture, the online route could take at least three to four days.

"We also seek a government identification card and a declaration from the individual to ensure that the information and the picture provided to us is genuine," the top postal official said.

There are a variety of themes being offered to go with the customised stamps, including the Taj Mahal, Ajanta Caves, Port Blair Island, Mysore Palace, Hawa Mahal, the Fairy Queen train, the Ghats of Varanasi, Ellora Caves, Victoria Memorial, The Sun Temple of Konark and the Gateway of India.

The postal department has also introduced an offer for the corporate sector and private institutions.

Source : http://www.prameyanews7.com

Minimum wage for central govt employees may be hiked

Union representatives meet Arun Jaitley, Rajnath Singh and Suresh Prabhu, demanding increase in minimum monthly pay beyond Rs18,000 suggested by Seventh Pay Commission

New Delhi: Under pressure from the unions, the government has indicated that it may increase the minimum monthly pay of central government employees beyond the Rs.18,000 suggested by the Seventh Pay Commission, seeking to defuse a strike threat.

The assurance has divided several government unions on whether to go ahead with the indefinite strike starting 11 July.

Three cabinet ministers—finance minister Arun Jaitley, home minister Rajnath Singh and railway minister Suresh Prabhu—met representatives of several government staff unions late on Thursday for almost two hours and assured them that their demand would be looked into.

The unions have been demanding Rs.26,000, higher than the Rs.18,000 approved by the cabinet on Wednesday on the Seventh Pay Commission’s report. The government said it was more than doubling minimum pay from Rs.7,000 after accepting the recommendations of the commission, which would put an extra Rs.1.02 trillion in the hands of 10 million government employees and pensioners.

“Three top ministers called us and we met at Rajnath Singh’s house for two hours till 11pm last night. We have been assured that the minimum wage issue is going to be referred to one of two committees that the government is setting up to rectify any anomalies in the pay commission recommendations’ implementation,” said Shiva Gopal Mishra, general secretary of the National Joint Council of Action (NJCA), a confederation of several government staff unions.

The council claims a membership of 3.3 million, including workers of Indian Railways, the country’s largest employer.

Mishra said Jaitley accepted their concern. “He said the government will try to rectify some of our demands, including minimum wage,” the NJCA general secretary said.

Union leaders claimed that the pay commission’s recommendation and the government’s announcement raising minimum pay from Rs.7,000 to Rs.18,000 had glossed over the fine print.

“Now, base pay plus dearness allowance (DA) makes the minimum wage Rs.15,700. They have increased it to Rs.18,000,” said K.K.N. Kutty, national president of the Confederation of Central Government Employees and Workers.

“When you are doing away with DA in the new system, the hike cannot be just Rs.2,000,” said C. Srikumar, general secretary of the All India Defence Employees Federation, a union of civilian workers in factories and establishments under the ministry of defence.

Mishra said the home minister assured them that “their interaction with us has the blessings of PM Narendra Modi”.

“On minimum wage, we are for a negotiated settlement and it seems there is some consideration at the highest level,” he added.

An office-bearer at an employees’ union said the government’s offer had posed a dilemma to union leaders, noting that it wasn’t a written assurance, “without which it will be tough to accept that the government is indeed serious in reworking the minimum wage”.

The offer had ended up dividing the unions on whether to proceed with the strike, this person said on condition of anonymity. “And we could not reach a conclusion on Friday on our next course of action,” he said, adding that the railway workers’ union was hesitant about going on strike.

Mishra, who is also the general secretary of All India Railwaymen’s Federation, sounded a conciliatory note.

“We are fighting for the welfare of our own workers...a strike is an option if government does not listen to us. There seems to be a political willingness to solve what we are demanding and that’s what was indicated last night,” Mishra told reporters in New Delhi.

On Friday, NJCA wrote to all unions that “government has proposed to refer the issue of minimum wage and fitment formula (for calculation of salary) to a committee for reconsideration. The NJCA will await communication in this regard from the government”.

It said that it will meet on 6 July again to decide on the proposed strike.

What is interesting is that increasing the minimum pay will change the salary fitment calculations. If the minimum wage is hiked from Rs.18,000 to even Rs.20,000, the fitment rate will be higher than the 2.57 times approved by the government based on the pay commission recommendations.

“If the 2.57 fitment formula is tinkered with, then salary and pension in general for all segments of employees will go up, putting further stress on the exchequer. So the government has to walk a fine balance and a lot of homework is required,” said a government official, who declined to be named.

The acceptance of the pay commission recommendations is a potential boost to the consumer economy.

A further hike could lift consumption further, but it will be tough on government finances, the official said.

Rating agency India Ratings and Research Pvt. Ltd said the gross impact of pay hike on the economy is likely to be Rs.94,775 crore.

“The central government will receive income tax on this payout and collect excise duty on consumption, after sharing the increase in income tax and excise duty with states. Thus the net impact on the central government finances is estimated to be Rs.80,641 crore,” said D.K. Pant, chief economist of India Ratings and Research. 

Source: PO TOOLS Blog