7th CPC: Expected Dearness Allowance from January 2015

7th CPC: Expected Dearness Allowance from January 2015

As all of us expected, 7% DA hike has been approved by Cabinet on 4th September 2014. Necessary order for payment of DA with effect from 1st July 2014 will be issued by Ministry of Finance soon. Here after our focus will be moving on to next instalment of dearness allowance which will be paid from 1st January 2015. We just analyse the trend of Consumer Price Index with the past seven months AICPCIN to arrive the expected DA from January 2015.

Since 2006, the AICPIN has witnessed second highest ever increase in July 2014. In 2009 the AICPIN increased by 7 points from 153 to 160 in the month of July. After that, an increase of 6 points over 246 points was declared in July 2014. It is the second highest monthly increase on AICPIN records from 2006. See the table below…

Year	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sept	Oct	Nov	Dec	MaxIncrease
2006	119	119	119	120	121	123	124	124	125	127	127	127	2
2007	127	128	127	128	129	130	132	133	133	134	134	134	2
2008	134	135	137	138	139	140	143	145	146	148	148	147	3
2009	148	148	148	150	151	153	160	162	163	165	168	169	7
2010	172	170	170	170	172	174	178	178	179	181	182	185	3
2011	188	185	185	186	187	189	193	194	197	198	199	197	4
2012	198	199	201	205	206	208	212	214	215	217	218	219	4
2013	221	223	224	226	228	231	235	237	238	241	243	239	4
2014	237	238	239	242	244	246	252						6

What is the impact of this highest increase of AICPIN on expected Dearness Allowance from January 2015?
It is observed that when it was 7 points increase in July 2009, it influenced very much on increasing the rate of DA to be paid from 1st January 2010 and 1st July 2010. The rate of Dearness Allowance had been enhanced by 8% from 25% to 35% with effect from 1.1.2010 and 10% increase from 35% to 45% was declared with effect from 1.7.2010. Though there was no considerable increase after those 7 points in that particular 12 months from July 2009 to June 2010, the rate of DA had been reached 8% and 10% increase level for  successive two instalments.

From this point of view, it is quite obvious that this one month increase on AICPIN is enough to play a vital role to have a considerable hike in rate of Dearness Allowance for forth coming two instalments. So this 6 points increase of AICPIN in July 2014, we can expect, will have a profound impact on increasing the rate of Dearness allowance to be paid, not only from 1st January 2015, but also from July 2015.

Let us see the three probabilities of  AICPIN trend, through which we can figure out approximately the expected DA from January 2015 

Probabilities (with AICPIN-IW points)	Expected DA from Jan 2015
Average increase of 3 points for remaining 5 months	9%
Average increase of 2 points for remaining 5 months	8%
If same points (252)continues for remaining  5 months	6%

Source: www.centralgovernmentnews.com

Unfortunate rumour-mongering about 7th Central Pay Commission’s visit to Ladakh

Unfortunate rumour-mongering about 7th Central Pay Commission’s visit to Ladakh

There were messages doing the rounds to the effect that Members of the 7th CPC are visiting Ladakh not for the purposes of analysing the conditions under which our men and women in uniform are deployed, but to enjoy a picnic at Pangong Tso lake at tax payers’ expense.

These messages are patently incorrect, malicious and unfortunate. Members of Pay Commission would, in fact, be visiting Siachen, Kargil, Mushkoh Valley, Chushul and Leh.

Similar whispers are at times heard about officers in the military hierarchy manning key positions related to pay, personnel and pensionary issues, including the pay commission cells of the three services. That too is demoralising.

Such rumours not only spread discontentment but also antagonize people who are working day and night for the betterment of serving personnel and veterans. Though change is the only constant and there is requirement of transformation of attitude at various ends, it can be said with great responsibility that the current military leadership and key appointments are extremely sensitised and sensitive towards the needs, requirements and aspirations of the military community and there is a consequent responsibility imposed on all of us to lend support to move towards the ultimate aim of betterment rather than creating an environment of negativity, that too based on a foundation of gossip.

Here is the official statement released by the Army on the subject of the visit of Members of 7th CPC to Ladakh:

We have noticed a number of malicious and ill informed comments being circulated on Social Media with regard to the visit of Justice Mathur, Chairman, 7th Central Pay Commission and other members of the Commission to Ladakh.

The Army wishes to clarify that Justice Mathur, Chairman, 7th Central Pay Commission and other members of the Commission are taking out very valuable time from their busy schedule to visit forward areas where our soldiers are serving in extremely difficult terrain, at our request.

Justice Mathur and members of the Commission would be visiting the Northern Glacier (Siachen), Kargil, Mushkoh Valley, Chushul apart from Leh, where they would be staying with various Army Detachments.
We are grateful to the 7 Pay Commission Team for personally experiencing the difficulties being faced by Army deployed in Ladakh.

On a lighter note though, I do feel we should not be so servile so as to thank Members of the Commission for “taking out very valuable time from their busy schedule”, since that my friends is their duty for what they are paid for and appointed, and not a favour extended to the society at large.

Source: www.indianmilitary.info

Cabinet committee today approved 7% additional Dearness Allowance to Central Government employees and Pensioners due from July 2014.

Cabinet committee today approved 7% additional Dearness Allowance to Central Government employees and Pensioners due from July 2014.

Release of additional installment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners due from 01.07.2014

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for the release of an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2014. This is an increase of seven percent over the existing rate of 100 percent of the Basic Pay/Pension, to compensate for price rise.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be of the order of approximately Rs. 7691 crore per annum and Rs.5127 crore respectively in the financial year 2014-2015 (i.e. for a period of eight months from July, 2014 to February, 2015).

CLICK HERE TO VIEW THE PRESS RELEASE OF AICPIN FOR THE MONTH JULY 2014 & DA TABLE

DA from July 2014 – Cabinet may declare 7% in this month for CG Staff

DA from July 2014 – Cabinet may declare 7% in this month for Central Government Staff

7% of Additional DA may declare in the this month for all CG Employees

Government to increase dearness allowance to 107 p.c

The Government is likely to approve a hike in dearness allowance (DA) to 107 per cent from the existing 100 per cent, benefiting around 30 lakh Centre’s employees and its 50 lakh pensioners including dependents.

“The average rate of retail inflation for industrial workers from July 1, 2013 to June 30, 2014 works out to be 7.25 per cent. Thus the Central government will hike dearness allowance for it employees by 7 per cent,” an official said.

He said the Finance Ministry will now put a Cabinet proposal for approval of 7 per cent DA hike from July 1 this year as the revised Consumer Price Index-Industrial Workers data for June was released by Labour Ministry on Saturday.

With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 107 per cent of basic pay.

The previous UPA government had increased DA to 100 per cent from 90 per cent with effect from January 1, 2014, on February 28 on the basis of agreed formula for revision of the allowance.

However, the central government employees’ union is not very enthused by the 7 per cent hike in the dearness allowance as their long pending demand of merger of DA with basic pay has not been given heed by 7th Pay Commission and the government.

“The erosion of value of wages is unbearable at 50 per cent dearness allowance. Now it will be 107 per cent. It is high time to merge DA with basic pay to provide relief to employees,” Confederation of Central Government Employees’ President KKN Kutty told PTI.

“We had summited our memorandum in this regard to 7th Pay Commission. They forwarded it to Central Government. We have apprised about the issue to the newly elected NDA government.

But no decision has been taken so far,” he said.

With merger of DA with basic pay, the salary and allowances paid in proportion of basic pay are increased. As per earlier practise DA was merged with basic pay once it breached 50 per cent mark. But the 6th Pay Commission has disallowed that.

Source : http://www.thehindu.com/news/national/govt-to-increase-dearness-allowance-to-107-from-100/article6366781.ece

Details of Meetings held by 7th CPC as on 22nd August 2014

Meetings held by 7th CPC (as on 22.08.2014) 

Date	Meeting with
16.06.2014	IPS Officers’ Association; Representative of Pay Commission cells of Army, Navy and Airforce; Indian Audit and Accounts Service Association; Cost Accounts Association; Civil Accounts Association; Federation of Railway Officers
17.06.2014	IAS Officers’ Association; Central Engineering Services Officers’ Association (Water+Power+Architecture); Central Engineering Services Officers’ Association (Civil+Electrical+Mechanical+Road Transport+Telecom); Income Tax Officers’ Association; Custom Officers Association; Central Excise Officers Association
18.06.2014	IFS Officers Association; PFRDA; Officers of Department of Financial Services, MOF; Officers of Department of Pension & Pensioners Welfare; P&T Finance Accounts Gr.A Officers Association; IRAS Officers Association; Central Health Service Association
19.06.2014	Indian Economic Service Officers Association; Indian Statistical Service Officers Association; IFS Officers Association; DGs of CAPFs (BSF+ITBP+Assam Rifles+Sashastra Seema Suraksha Bal); DGs of CAPFs (CISF+CRPF+NSC)
21.07.2014	Director, IB; Director, CBI; Director, RAW
22.07.2014	Police Commissioner, Delhi; DG Coast Guard; IOFS Officers Association
23.07.2014	Bharat Central Pensioners Federation; Bharat Pensioners Samaj; Group ‘B’ Indian Information Service Association; Indian Postal Service Officers Association; DANICS Officers Association; Group ‘B’ Indian Ordnance Gazetted Officers Association
24.07.2014	Confederation of Central Government Gazetted Officers Association; National Ex-Servicemen Co-ordination Committee; Indian Ex-Services League
20.08.2014	Commissioner, Kendriya Vidyalaya Sangathan; Commissioner, Navodaya Vidyalaya Sangathan

EXPECTED DA JAN 2015 – AICPIN FOR JULY 2014 – 6 POINTS HIKED AND STANDS AT 252

EXPECTED DA JAN 2015 – AICPIN FOR JULY 2014 – 6 POINTS HIKED AND STANDS AT 252

No. 5/1/2014-CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

`CLEREMONT’, SHIMLA-171004
DATED: the 29th August, 2014

PRESS RELEASE

Consumer Price Index for Industrial Workers (CPI-IW) – July, 2014

The All-India CPI-IW for July, 2014 increased by 6 points and pegged at 252 (two hundred and fifty two). On 1-month percentage change, it increased by 2.44 per cent between June, 2014 and July, 2014 when compared with the rise of 1.73 per cent between the same two months a year ago.

The largest upward pressure to the change in current index came from Food group contributing 4.42 percentage points to the total change. The House Rent index further accentuated the overall index by 1.08 percentage points. At item level, Rice, Eggs, Milk, Onion, Chillies Green, Tomato, Potato and other Vegetables & Fruits, Sugar, Tea (Readymade), Pan Finished, Doctors’ Fee, College Fee, Petrol, Rail Fare, etc. are responsible for the increase in index. However, this increase was restricted to some extent by Wheat, Soft Coke, Medicine (Allopathic), etc., putting downward pressure on the index.


The year-on-year inflation measured by monthly CPI-IW stood at 7.23 per cent for July, 2014 as compared to 6.49 per cent for the previous month and 10.85 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 8.11 per cent against 5.88 per cent of the previous month and 14.10 per cent during the corresponding month of the previous year.

At centre level, Nagpur recorded the maximum increase of 12 points followed by Ludhiana (10 points). Among others, 9 points rise was observed in 7 centres, 8 points in 3 centres, 7 points in 9 centres, 6 points in 23 centres, 5 points in 14 centres, 4 points in 10 centres, 3 points in 4 centres, 2 points in 4 centres and I point in 2 centres.

The indices of 35 centres are above and other 41 centres are below national average. The indices of Ernakulam and Varanasi are at par with all-India index.

The next index of CPI-IW for the month of August, 2014 will be released on Tuesday, 30 September, 2014. The same will also be available on the office website www.labourbureau.gov. in.

(S.S.NEGI)
DIRECTOR

Source: www.labourbureau.gov.in

Fixation of pay of State Government Employees on their appointment in Central Government, subsequent to implementation of CCS (RP) Rules, 2008

Fixation of pay of State Government Employees on their appointment in Central Government, subsequent to implementation of CCS (RP) Rules, 2008.

No.12/1/2009-Estt (Pay-I)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training

New Delhi the 28th August, 2014

OFFICE MEMORANDUM

Subject: Fixation of pay of State Government Employees on their appointment in Central Government, subsequent to implementation of CCS (RP) Rules, 2008.

The undersigned is directed to say that the method of fixation of pay of State Government employees on their appointment under the Central Government has been spelt out in this Department’s OM No.12/1/94-Estt(Pay-I) dated 24 March, 1994, 3rd January, 1996 and OM NO.13/2/99-Estt (Pay-I) dated 18.6.2001.

2. The question of fixation of pay in cases of appointment from State Govt. to Centrat Govt. consequent upon revision of pay scales on acceptance of the recommendations of the VI Central Pay Commission in the revised pay structure has been considered in consultation with the Department of Expenditure and the President is pleased to decide that in cases of appointment of State Government employees in Central Government on or after 1.1.2006, pay will be fixed in the following manner:-

(a) Where the State Government has revised the Pay scales of their employees on the pattern of VI Central pay Commission at the base index of 115.76 as per AICPI (IW) 2001 series w.e.f. 1.1.2006 the pay of these State Government employees on their appointment under the Central Government would be fixed as follows:

(i) When the appointment is to a post carrying higher Grade Pay, one increment equaI to 3% of the sum of the pay in the existing grade pay will be computed and rounded off to the next multiple of 10. This will then be added to the existing pay in the pay band. The grade pay corresponding to the higher post will thereafter be granted in addition to this pay in the pay band. In cases where the appointment involves change in pay band also, the same methodology will be followed. However. if the pay in the pay band after adding the increment is less than the minimum of the higher pay band to which the appointment is takihg place, pay in the pay band will be stepped up to such minimum.

(ii) Where the appointment is to a post involving identical Grade Pay, the individual shall continue to draw the same pay.

(b) Where the State Government have revised the pay scales of their employees after 1.1.2006 beyond the base index of 115.76 as per AICPI (IW) 2001 series, basic pay of the employees is to be determined first in the Central Scale by reducing the element of DA, ADA, IR etc. granted by the State Government after 1.1.2006 (beyond the base index of 115.76 as per AICPI (IW) 2001 series) and thereafter the pay would be fixed as provided in the clause (i) &(ii) under sub para (a) above.

(c) Where the state Government have either not revised or revised the pay scale of their employees on or after 1.1.2006 below the base index of 115.76 as per AlCPl (IW) 2001 series, basic pay of these employees shall be determined first in the Central scale, by adding the element of D.A. ADA upto base index of 115.76 as per AICPI (IW) 2001 series granted by the State Government and thereafter their pay would be fixed as provided in the clause (i) &(ii) under sub-para (a) above.

3. These orders are applicable to employees of the State Government and local bodies under the State including Emergency Divisional Accountants/Divisional Accountants / local bodies under the State Government appointed under Central Government on or after 1.1.2006.

4. In so far as the employees serving in the Indian Audit and Accounts Department are concerned, these orders issue after consultation with the Comptroller and Auditor General of India.

5. Hindi version will follow.

sd/-
(Mukesh Chaturvedi)
Director (Pay)

Source: www.persmin.gov.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02est/12_1_2009-Estt-Pay-1.pdf]

Confederation writes to Finance Ministry regarding Transport Allowance

Confederation writes to Finance Ministry regarding Transport Allowance to regulate to Faridabad Gurgaon, Ghaziabad and Nodia cities at par with Delhi rates

CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor, North Avenue PO Building, New Delhi – 110001
Website: WWW. Confederationhq.blogspot.com
Email: Confederationhq@yahoo.co.in

Ref: Conf/Genl/2014

Dated – 26.08.2014

To
The Secretary
Ministry of Finance
Department of Expenditure
New Delhi – 110001

Sub: Regulation of Transport Allowance at Faridabad Gurgaon, Ghaziabad and Nodia at par with Delhi rates.

Sir,
Your kind attention is invited to the OM No. 21(8)2010-E-II (B) dated 01.08.2012 of Ministry of Finance, Department of Expenditure regarding regulation of Transport Allowance at Faridabad, Gurgaon, Ghziabad and Noida wherein instructions have been issued to regulate the Transport Allowance at the rates applicable to ‘Other Cities’ i.e other than 13 classified cities as per the condition laid down in OM no. 21(2)12008-E-II (B) dated 29.08.2008. Issuance of the OM has created panics among the employees posted at these cities. Immediate action is required to be taken to avoid implementation of the OM.

In this connection following points are brought to your kind notice :

1. Ministry of Finance, Department of Expenditure had issued OM 2(4)-E.II (B)/65 dated 05.11.1974 vide which special dispensation was given to Faridabad at Delhi rates in respect of CCA & H RA.

2. 5th Central Pay Commission had made recommendations to grant of transport allowance to Central Government employees to compensate the cost incurred on commuting between the place of residence and the place of duty. Transport allowance was implemented vide 0M No. — 1(13)97-E-Il (B) dated 03.10.1997, according to which, transport allowance was to be regulated on the basis of classification of cities for the purpose of CCA. Para 3.1 of said order Is reproduced below-

The cities referred to as ‘A’ and ‘A-1’ in these orders shall be the same as those classified as such for the purpose of Compensatory (City) Allowance (CCA) in terms of the orders issued
separately regulating grant of CCA to the Central Government employees.

3. Vide para 4.2 8, 6 CPC had recommended abolition of CCA and increased the rates of transport allowance subsuming the element of CCA. The abolition of CCA was compensated by increasing the rates of transport allowance.

4. Faridabad has been given the status of A-1 city (as being part of the Urban Agglomerate of Delhiat par with NOIDA, Ghazia bad and Gurgan etc.) since 1974 for the purposes of HRA & CCA and since August, 1997 for the purpose of transport allowance as given above. These facilities are being extended to the Central Government employees/officers posted at Faridabad accordingly.

5. It may further be noted that, Ministry of Finance, vide No. 21 (2)/2008-E.ll dated 29.08.2008 has classified 13 cities as A-I/A which, inter-alia, includes Delhi (UA). Delhi (Urban Agglomerate) includes Faridabad, Ghaziabad, Noida & Gurgaon As such, the rates of Transport Allowance admissible for the City of Delhi, automatically stands extended to the other constituents of the Urban Agglomerate.

6. If rate of the transport allowance is reduced the rate payable to other cities, employees posted at Faridabad, Ghaziabad, Noida & Gurgaon will be deceived from the benefit given by the 6th CPC by subsuming the element of CCA in transport allowance as they were being paid CCA at Delhi rates.

7. In view of the above, it reveals that the transport allowance was being regulated on the basis of classification of cities for the purpose of CCA and payment of transport allowance at Delhi rates, to the employees posted at Faridabad is fully justified. This stands already concluded by the orders and judgments of the Hon’ble CAT Principal Bench, New Delhi (copy enclosed for ready reference) as given below-

1) OA No. 483/2005, Judgment dated 16.09.2005.

2) OA No. 2441/2005, Judgment dated 02.08,2006

3) RA No. 296/2010, Judgment dated 14.01.2011.

4) OA No. 368/2011, Judgment dated 21.07.2011.

5) OA no. 459/2011, Judgment dated 05.08.2011.

6) CP No. 302/2011, Judgment dated 30.03.2011.

8. These judgments squarely covers this issue wherein the Hon’ble CAT, Principal Bench, New Delhi had upheld the payment of Transport Allowance at par with Delhi (UA) and the said judgments were accepted by the Government and duly implemented. It appears that the Department of Expenditure has not noticed the above judicial pronouncement and issued the clarification vide OM dated 1” August, 2012, which seem to be in contravention of the directions of the Hon’ble CAT.

It is therefore, requested to kindly take cognizance of the facts and particularly the binding judgments of the Hon’bel CAT, New Delhi as mentioned above to withdraw the latest instructions issued vide ID No. 21 (8)12010-E-Il (B) dated 01.08.2012 for reducing the Transport Allowance on par with “Other Cities”.

An early action ¡n this regard is highly solicited.

DA: as above

Yours faithfully,
sd/-
(M. Krishnan)
Secretary General

Copy to: -
Corn, N. Somaiah, Vice President, Confederation of Central Government Employees & Workers c/o
Takshasila Vidyapeetham, Dasaigudam Road Shantinagar, Suryapet Dist. Nalgonda (A.P).

Source: http://confederationhq.blogspot.in/2014/08/confederation-writes-to-ministry-of.html

7th Pay Commission for Karnataka State Employees

7th Pay Commission for Karnataka State Employees

Karnataka govt keen to constitute 7th pay commission for govt employees

Chief minister Siddaramaiah on Friday said that the state government is positively inclined to constitute seventh pay commission for state government employees in addition to providing various facilities to them on the lines of central government.

Addressing state level government employees conference here, he said the employees are demanding the government to constitute new pay commission, but you should know that state government has implemented the recommendations of the sixth pay commission in 2012 and there is time till 2017 for constitution of the new pay commission.

As there is pressure from the experts to prepare from now itself to constitute the new pay commission government is working in that direction, he said adding that soon the state government may come out with a decision on the constitution of new pay commission. “However we are determined to provide facilities to the state employees on the lines of central government,” he said.

Speaking for more than one hour at this state level conference being organized after a gap of six years, that too at CM’s homeground, he said government is timely releasing the allowances and salaries of the employees. Referring to the demands of the government employees, chief minister said at the same time the employees should learn to work sincerely with a service motto. “Government employees should realize their responsibilities and duties” he said urging the workers to discharge their duties properly. “I am not here to give sermons to you, but if you want to command peoples respect you have to work seriously and sincerely,” he added.

Suggesting the employees to hold this conference once in every three years, Siddaramaiah said such conference will instill confidence you and make you to rededicate yourself for a public cause.

Releasing a souvenir on the occasion, housing minister Ambarish said the employees are the link between the government and people and is the responsibility of the workers to make the government programmes reach people. “This will happen only when employees realize that this itself is a great work and needs dedication,” he said.

Source : Times of India

7th Pay Commission proposes to visit Leh / Srinagar between 15th to 18th September 2014

7th Pay Commission proposes to visit Leh / Srinagar between 15th to 18th September 2014

Visit of the 7th CPC to Leh/Srinagar

The Commission has, in its first phase of interaction, been seeking the views of various stakeholders on its terms of reference. To this end, meetings have been held in Delhi with various organisations and heads of various agencies.

In its second phase of interaction, the Commission plans to hold meetings in different parts of the country to facilitate stakeholders staying in various areas to present their views personally before the Commission and ensure larger representation. This exercise is being undertaken to enable the Commission to get a firsthand impression about the functioning and the condition of service prevailing in different parts of the country.
Accordingly, the Commission, headed by its Chairman, Justice Shri A. K. Mathur, proposes to visit Leh/Srinagar between 15th September to 18th September, 2014. The Commission would like to invite various entities/associations/federations representing any/all categories of employees covered by the terms of Reference of the Commission to present their views.

Your request for a meeting with the Commission may be sent through e-mail to the Secretary, 7th Central Pay Commission at secy-7cpc@nic.in The memorandum already submitted by the requesting entity may also be sent as an attachment with this e-mail.

The last date for receiving request for meeting is 5th September, 2014 (1700 hours).

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