Sunday, April 24, 2016

7th Pay Commission – How Govt will Save Rs 11,000 Crore – Allowances currently are roughly half of the Centre’s salary bill.

The Centre is likely to implement the 7th Pay Commission award from September-October, the beginning of the festive season, to give a consumption boost to the economy. However, in order to restrict the budgetary outgo, it would pay the revised allowances only prospectively, unlike the pay component that will be paid along with arrears from January 2016.

Allowances currently are roughly half of the Centre’s salary bill; as per the pay panel award, the steepest increase — 63% — was in allowances, while the overall rise in pay, allowances and pensions recommended was 23.55%.

If the revised allowances take effect only from September this year, the savings to the govt would be to the tune of Rs.11,000 crore, official sources said. Additionally, if the railway ministry decided to toe the Centre’s line, the national transporter will save around Rs.3,800 crore. The Budget in February had provided Rs.53,500 crore towards the pay panel-induced overall rise in pay, allowances and pension (PAP) and also to finance the one-rank-one-pension scheme for the armed forces. The 7th Pay commission had estimated the additional outgo in FY17 due to its award at Rs.73,650 crore.

The Centre’s additional bill on allowances in FY 17 due to the pay panel would have been about Rs.22,000 crore, but since it would release allowances only from September (and not with retrospective effect from January as envisaged by the commission), the actual outgo would be nearly half that.

Some analysts reckon that the consumption stimulus to the economy from the increased pay to government staff this time around could be somewhat muted.

Compared with the Sixth Pay Commission award — which led to an overall salary increase of 40% and was released first with arrears of 30 months paid over two years — the disbursement now includes only six months’ arrears in pay, they noted. “If the pay commission’s award is implemented across the board (including state governments as well as public institutions/enterprises), it would bring in an additional 0.9% of GDP growth in FY17,” said NR Bhanumurthy, professor at the National Institute of Public Finance and Policy. Even if states lag in implementing the pay revisions, Bhanumurthy said, GDP growth still could be at least 8% in the current fiscal, up from likely 7.6% last year.

Contrary to some reports that government employees could be asked to put part of the increased salary in bank capitalisation bonds to be issued by the Centre to infuse capital in the banks, officials said there was no such move. The government would like the employees to spend additional money in their hands to perk up the economy, sources added.

7th Pay CommissionThe seventh pay panel had projected the railways budget would bear the additional Rs.28,450 crore in FY17 due to its award. However, officials reckon that the actual requirement could be lower by about R3,800 crore for the railways due to prospective implementation of allowances.

Prepare for Joint Circle Council meeting of P3, P4 & GDS on 8-5-16

Dear Comrades,
It has been decided to convene Joint Circle Council Meeting of P3, P4 & GDS on 8-5-16 Sunday.

Details of venue will be declared in 2 days.

The main purpose of meeting will be about our final preparations for enrollment of maximum GDS employees in our AIPE Union GDS (NFPE) in process of verification of membership which is coming very soon.

We will definitely discuss all other major and minor problems faced by our staff in each divisions.

All are requested to bring list of problems of their divisions in writings with detail as well as copies of minutes of Monthly meetings and letters addressed to administration.

All Divisional Secretary must bring details & receipts/evidence for Quota sent to NFPE & CHQ during last 4 years. It is very sad that these higher ups are struggling hard for remittance of quota to them as per constitution. All DS must clear their quota otherwise, action as per constitution would be initiated as a last resort.

All DS must bring cheque or cash for clearing  arrears of quota of Circle union.

For signing letter of authorisation as an authorised Signatory from union, we must decide one name of Convener of our GDS union. All P3/P4/GDS leaders of division should decide one name of their division and bring that particular proposed convener with them in the meeting. This is very important. If a division has already an elected body of GDS union, like in Rajkot- Bharuch, DS of GDS Union should ne informed to attend meeting.


Dr Jitendra Singh urges State Governments to abolish interview for certain jobs

Press Information Bureau 
Government of India
Ministry of Personnel, Public Grievances & Pensions
22-April-2016 18:14 IST
Dr Jitendra Singh urges State Governments to abolish interview for certain jobs
Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh has urged State Governments to expedite the process of abolition of interview for selection to such posts where it is not required. He was addressing a meeting of Principal Secretaries of General Administration Departments (GAD) from different States and Union Territories here today.
Dr Jitendra Singh recalled that Prime Minister Shri Narendra Modi had suggested the abolition of interviews during Independence Day address from the ramparts of Red Fort on 15th August 2015 and the Department of Personnel & Training (DoPT) promptly followed it up by completing the exercise before the year end and ensuring that beginning from 1st January 2016, the practice of conducting interview was discontinued for selection to non-gazetted and junior posts, including C & D Group in the Central Ministries and Departments. However, the provision of skill test was allowed for such posts where a special skill was required, but this skill test was also of qualifying nature.
However, Dr Jitendra Singh regretted that many of the States have yet to make a satisfactory headway in this direction. He said, since today’s meeting was being attended by GAD Secretaries from most of the States ranging from Jammu & Kashmir to Kerala, it is expected that the officers will go back to their respective States with the message to carry forward this initiative in right earnest. Citing the example of States like Maharashtra, Rajasthan and Uttar Pradesh, which has made significant progress in abolishing interviews, Dr Jitendra Singh advised the Secretaries of other States also to try to understand and replicate the same in their respective States.
Dr Jitendra Singh also noted that the provision of self-attestation was adopted by certain States very late and exhorted the State Governments to follow the initiative of preparing a Single Page form for different applications which was started by DoPT on the occasion of “Sushasan Diwas” on 25th December 2015. Dr Jitendra Singh reiterated the government’s commitment to provide work-friendly environment for officers and added that, at the same time, the Centre was also keen that various administrative and governance reforms initiated during the last two years should be seriously carried forward in States and Union Territories because these are in the interest of common man and the poor and, at the same time, aimed at providing level playing field to the youth aspirants across the country.
DoPT Secretary Shri Sanjay Kothari, Additional Secretary Shri T. Jacob, Joint Secretaries of the Department, Principal Secretaries of GAD from different States and Delhi based Resident Commissioners of different States attended the meeting.

Government Decides to withdraw the 10th February 2016 Notification with Immediate Effect

Press Information Bureau
Government of India
Ministry of Labour & Employment
21-April-2016 17:51 IST
Government Decides to withdraw the 10th February 2016 Notification with Immediate Effect
Government had issued a notification dated 10th February 2016 regarding rules for withdrawal from EPF Funds by the members. Under the revised rules, the employee was permitted to withdraw the employees’ share from the fund (which is 12% of the wages). However, it was prescribed that the employers’ share of contribution towards the Provident Fund (which is 3.67% of wage) would be allowed to be withdrawn only at the age of retirement (58 years). The objective was to provide a minimum social security to the workers at the time of retirement. It was noticed that over 80% of the claims settled by EPFO belonged to pre-mature withdrawal of funds, treating the EPF accounts as savings accounts, and not a Social Security instrument.
In order to address the issues the amendment stated above was carried out with the consent of Trade Unions and with the intention of promoting a decent accumulation of provident fund for the members at the end of their working lifetimes.
However, considering the representations received from various quarters and after consultations with the various stakeholders, Minister of State (IC) Labour and Employment, Sh Bandaru Dattatreya announced that the government has decided to withdraw the said 10th February 2016 Notification with immediate effect.
Accordingly, the workers are now allowed to withdraw the entire amount from the provident fund as per existing provisions of the EPF Scheme 1952 including the employers’ share of 3.67%.
Source: PIB News

Provision of Five days week – NFPE

Government of India
Ministry of Communications & IT
Department of Posts
(SR Section)
Dak Bhavan, Sansad Marg,
New Delhi – 110001
Dated the 13th April, 2016
Subject : Provision of Five days week – request consideration
Kindly find enclosed letter No. PF/GENL/NFPE dated 11-02-2016 received from General Secretary, National Federation of Postal Employees on the above mentioned subject, for necessary action at your end. A reply may be sent to the association directly under intimation to this Division.
(V. Ramaswamy)
Assistant Director General (SR & Legal)
Source :