7th Pay Commission Pension, Pay scales, MSP, MACP and more

The 7th Pay Commission report has recommended an average 23.55% hike in salaries and allowances of Central government staff and the same is likely to be replicated in all the states too, except Puducherry where the same system as in Centre is already applicable – minimum pay set at Rs 18,000 per month and maximum pay at Rs 2,50,000 per month – recommended date of implementation: 01, January, 2016.

Here we provide all you ever wanted to know in 10 points on most crucial aspects of the 7th Pay Commission report:

1. 7th Pay Commission pension, pay scales, allowances – Minimum Pay:

Based on the Dr Wallace Aykroyd formula (nutrition) , the minimum pay (salary) in government is recommended to be set at Rs 18,000 per month; Maximum Pay: Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level. If passed, the salary hikes this report is recommending are likely to boost demand for consumer goods across the spectrum, even though it could also be inflationary. (Reuters)

2. 7th Pay Commission pension, pay scales, allowances – Advances:

a. All non-interest bearing Advances have been abolished; b. Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs 25 lakhs from the present Rs 7.5 lakhs. (PTI)

3. 7th Pay Commission pension, pay scales, allowances – Pension:

The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement. The 7th Pay Commission received many grievances relating to New Pension System (NPS). It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism. (PTI)

4. 7th Pay Commission pension, pay scales, allowances – Performance Related Pay:

The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes. (PTI)

5. 7th Pay Commission pension, pay scales, allowances – New Pay Structure:

Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix. The rate of Annual Increment is being retained at 3 percent. (PTI)

6. 7th Pay Commission pension, pay scales, allowances – Modified Assured Career Progression (MACP):

a. Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”; b. The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service; c. No other changes in MACP recommended. (Thinkstock)

7. 7th Pay Commission pension, pay scales, allowances – Military Service Pay (MSP):

The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows: (Reuters)

8. 7th Pay Commission pension, pay scales, allowances – Short Service Commissioned Officers:

Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. The Seventh Pay Commission also says they will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute to better their prospects in later life. (PTI)

9. 7th Pay Commission pension, pay scales, allowances – Allowances:

The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix. a. Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance. (PTI)

10. 7th Pay Commission pension, pay scales, allowances – Financial Implications:

The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, over the expenditure as per the “Business As Usual” scenario. Of this, the increase in pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore and increase in pension would be Rs 33,700 crore. In percentage terms the overall increase in pay & allowances and pensions over the “Business As Usual” scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent. (Image by PTI)

Source:  www.financialexpress.com

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No proposal to discontinue the Digital Life Certificate for the Pensioners

Press Information Bureau 

Government of India

Ministry of Personnel, Public Grievances & Pensions

No proposal to discontinue the Digital Life Certificate for the Pensioners

There is a report in a section of press that while inaugurating an Awareness Workshop on the online Pension Sanction and Payment Tracking System “BHAVISHYA”, Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances and Pensions, Atomic Energy and Space, Dr Jitendra Singh said that the practice of submitting Digital Life Certificate for continuation of pensions will soon be done away with.

Strongly rebutting the report, it is stated that Union Minister Dr Jitendra Singh has never ever expressed any opinion on the issue at any platform and, therefore, the question of having made such a statement does not arise at all.

It is clarified that, as of now, the government has no proposal to discontinue the Digital Life Certification for the pensioners.

It is to be stated that “Jeevan Pramaan” – a facility for submission of digital of life certificates by pensioners has been launched in November 2014. This is a voluntary facility provided in addition to existing provisions available for submission of life certificates. Till date 9,62,910 Digital Life Certificates have been furnished by pensioners.

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Rates of Night Duty Allowance w.e.f. 01.07.2015

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

RAILWAY BOARD

RBE No.149/2015

No.E(P&A)II-2015/HW-1

New Delhi, dated 23-11-2015

The General Managers/CAOs

All Indian Railways & Prod. Units etc.

Subject: Rates of Night Duty Allowance w.e.f. 01.07.2015

Consequent to sanction of an additional instalment of Dearness Allowance vide this Ministry’s letter No.PC-VI/2008/I/72/1 dated 24.09.2015, the President is pleased to decide that the rates of Night Duty Allowance as notified vide Annexures “A” and “B” of Board’s letter No.E(P&A)II-2015/HW-1 dated 08.06.2015 stand revised with effect from 01.07.2015 as indicated at Annexure “A” in respect of “continuous”, “Intensive”, ‘Excluded’ categories and workshop employees, and as indicated at Annexure ‘B’ in respect of ‘Essentially Intermittent’ categories.

2. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

(Sd/-)

(Salim Md. Ahmed)

Dy.Director/E(P&A) II

Railway Board.

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7th Pay Commission’s Report on Child Care Leave

Child Care Leave (CCL) is granted to women employees for a maximum period of 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.

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 365 Index recommended that for such employees, the conditionality of three spells in a calendar year should be relaxed to six spells in a calendar year.

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DECEMBER 1st & 2nd, 2015 TWO DAYS STRIKE DEFERRED by NFPE

DECEMBER 1st & 2nd, 2015 TWO DAYS STRIKE DEFERRED by NFPE

SECRETARY GENERAL AND ALL GENERAL SECRETARIES OF NFPE & AIPEU GDS (NFPE) WILL SIT ON TWO DAYS HUNGER FAST INFRONT OF DAK BHAWAN, NEW DELHI ON 1st & 2nd DECEMBER 2015

ONE DAY MASS HUNGER FAST IN FRONT OF ALL CPMG / PMG & DIVISIONAL OFFICES ON 11th DECEMBER 2015

TO EXPRESS OUR ANGER, RESENTMENT AND STRONG PROTEST AGAINST THE REJECTION OF THE LEGITIMATE DEMANDS OF THREE LAKHS GRAMIN DAK SEVAKS BY THE NDA GOVT.

The Federal Secretariat of NFPE held at NFPE Office, New Delhi on 26-11-2015, reviewed the whole situation prevailing among the postal employees in general and the Gramin Dak Sevaks (GDS) in particular after the submission of the 7th Central Pay Commission Report to the Govt and also after the appointment of a separate committee for GDS by the Govt, headed by a retired Postal Board Member as Chairman.

The Federal Secretariat  further reviewed the proposed two days strike call given by NFPE and AIPEU GDS (NFPE) for realization of the legitimate demands of the Gramin Dak Sevaks, which  include bringing the GDS also under the purview of 7th CPC treating them as Civil Servants.

The main demand of NFPE and AIPEU GDS (NFPE) in the charter of demands submitted to Govt and Postal Board is “inclusion of GDS under the purview of 7th CPC”. NFPE organized series of agitational programmes for the GDS demands including dharnas, hunger fast, GDS Parliament March, Parliament March under the banner of Postal JCA (NFPE & FNPO), one day strike on 12th December 2012 and 48 hours strike on 12th & 13th February 2014. Due to our agitational programmes the Postal Board was compelled to submit the proposal for inclusion of GDS under 7th CPC to Finance Ministry with favourable recommendations. But the Finance Ministry rejected the proposal three times and it is in this background NFPE & AIPEU GDS (NFPE) decided to go for two days strike on December 1st & 2nd demanding the Govt to include GDS under the 7th Pay Commission.

Even though the Govt refused to include the GDS under the 7th CPC, the 7th CPC has suo moto examined the main demand of the GDS ie., treating them as Civil Servants and extending them all the benefits of the departmental employees, ofcourse proportionately. It is most unfortunate that the Pay Commission headed by a retired Supreme Court Justice as Chairman, has considered our demand and categorically stated that Gramin Dak Sevaks are holders of Civil Posts but outside the regular civil service and hence can not be treated at par with other civilian employees. After this observation of the Seventh CPC even if the GDS are included in the 7th CPC they are not going to get a fair deal. This has compelled us to modify the demand placed by us before the Govt in the charter of demands.

NFPE, from the very beginning has opposed the appointment of an Officer Committee for GDS and NFPE & AIPEU GDS (NFPE) has tried their best to prevent appointment of an Officer Committee and compelled the department to make effort for inclusion of GDS under 7th CPC itself. But now NDA Govt rejected our demand and has unilaterally appointed GDS Committee with a retired Postal Board Member as Chairman and cheated three lakh GDS employees. From our past experiences we know that the retired officers of the Postal Department will never do justice to the Gramin Dak Sevaks.

In view of the fact that 7th CPC has rejected our demand for Civil Servant status and also the Govt has unilaterally imposed the officer committee on GDS, the Federal Secretariat felt that it is not appropriate to go for an immediate strike with the demands raised by us in the charter of demands, i.e., inclusion of GDS under 7th CPC. Now GDS can get justice only if NDA Govt take a policy decision to regularize the services of GDS treating them as Civil Servants. Federal Secretariat is fully aware that we can not expect such a decision without the  change in the policy of the Government towards GDS. To make a change in the policy decision of the Govt., a bigger mobilization and strike of all postal employees including GDS with the active support and solidarity of other central Govt employees under the banner of Confederation of Central Govt Employees and workers and also the JCM National Council Staffside organizations is required.

The Federal Secretariat decided to explore all possibilities and wider consultations for such a united struggle. The Federal Secretariat felt that to pave way for wider consultations, the independent strike call of NFPE & AIPEU GDS (NFPE) need to be deferred and all likeminded organizations are to be brought under a common platform. Accordingly Federal Secretariat unanimously decided to defer the proposed two days strike scheduled to be held on 1st & 2nd December 2015.

The Secretary General and all General Secretaries of NFPE shall sit on two days hunger fast in front of Dak Bhawan, New Delhi on 1st & 2nd December 2015 expressing our strong protest to the Govt and also demanding regularization of Gramin Dak Sevaks by granting them civil servant status with all consequential benefits of regular employees.

The Federal Secretariat, while saluting the grass root level workers for their intensive campaign and preparation for the strike, calls upon them to organize one day hunger fast infront of all CPMG / PMG and Divisional Offices throughout the country on 11th December 2015 to ventilate our anger, resentment and strong protest against the callous and inhuman attitude of the NDA Govt towards three lakh Gramin Dak Sevaks who are the backbone of the Postal Department catering to the needs of the rural population of this country in postal sector.

Federal Executive of NFPE will meet shortly  to review the situation and shall decide future course of action.

=R.N.PARASHAR

SECRETEARY GENERAL

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7th Pay Commission Report : More flaws than plus points

The much-awaited 7th Pay Commission report was submitted to the government last Thursday. The 900-page long report was perused swiftly within a day or two and criticisms have already started coming.

The very next day of submitting the report, M. Krishnan, the Confederation Secretary, gave a scathing criticism. “No other Pay Commission had submitted such a terrible report,” he said. At the very beginning of the press release, he had mentioned that the backward mindset of the recommendations of the Pay Commission have been a huge disappointment for the Central Government employees.

Contrary to all the wild speculations, a raise of only 14.29 percent was finally given to the Central Government employees. This increment is akin to two installments of the Dearness Allowance. He has strongly stated that more than 50 lakh Central Government employees and Defence Personnel have been cheated.

The 6th Pay Commission recommended 10 percent, 20 percent, and 30 percent House Rent Allowance for ten years starting from 01.01.2006. The intention behind reducing it to 24 percent, 16 percent and eight percent was not explained. Despite being very well aware of the fact that the recommendations will be in effect until 2026, the fact that the Pay Commission had tried to reduce the allocation has left the Central Government employees greatly disappointed.

MACP Promotions: Among the biggest disappointments of the 7th Pay Commission report is the fact that promotions, which are given once every ten years, so not earn any substantial benefits for the employees. They stand to gain only 3 percent hike. Another painful observation is the fact that the gap between Grade Pay 2800 and 4200 has been completely reduced.

The next big disappointment is the method of calculating the dearness allowance. This was one of the much-anticipated parts of the report. There is no clear explanation as to the reason why changes had to be made in the CPI IW BY 2001=100 method, or the 115.76 Factor.

On top of it all, the commission has introduced a new “Pay Matrix.” Our expectations of a detailed explanation about it were never fulfilled. 3 percent of the amount has been rounded off and given for each CELL.

In short, the 7th Pay Commission report is on the receiving end of lot of criticism. Central Government employees are now hoping that the Centre would intervene and do something positive for them.

Source: www.cgstaffportal.in

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New Pension Scheme(NPS) : Analysis of the Issues by the 7th Pay Commission

New Pension Scheme : Analysis of the Issues by the 7th Pay Commission

10.3.12 The Commission has examined these concerns raised by the stakeholders. The Commission also interacted with Chairman, PFRDA, and representatives of the Department of Pensions and Pensioners Welfare (DPPW), Department of Personnel and Training (DoPT), Department of Expenditure (DoE) and the Department of Financial Services (DFS).

10.3.13 In so far as the future value of pension under NPS is concerned, the Commission notes that this would depend upon a combination of factors:

(i) performance of the invested fund, which in turn would depend on the asset mix of the investment and general economic situation of the country,

(ii) cost of financial intermediation,

(iii) contribution rates,

(iv) period of contribution,

(v) performance of the fund manager and

(vi) development of the annuity market.

Grievances against the NPS

The NPS has now been in effect for over 10 years. During this period, there has been perceptible progress in putting together the architecture and providing information to subscribers. Major concerns, however, remain. Broadly, these are as under:

i. The larger federations and staff associations advocated scrapping the NPS on the ground that it discriminates between two sets of government employees.

ii. Individuals covered under NPS have pleaded for reverting to the OPS on the grounds of uncertainty regarding the actual value of their future pension in the face of market related risks.

iii. Individuals have pointed out that under NPS, the effective salary becomes less since the employee has to mandatorily contribute 10 percent of pay towards the pension fund.

iv. Individuals have stated that grievance redressal facility is not effective and consultation with stakeholders has been non-existent. This communication gap has generated insecurity in the minds of stakeholders including staff and Group ‘A’ officers of Central Government as well as All India Service Officers.

v. Associations have complained that Family Pension after the death of the employee is not ensured in the NPS. Moreover, if an employee dies at an early age, the family would suffer since annuity from the contribution would be grossly inadequate.

vi. Individuals have complained that NPS subscribers have no recourse to GPF for their savings. Their personal savings (10% of salary) are considered part of a larger corpus. It has been pointed out that the justify approach would be to consider only government’s contribution and the returns earned on it as the effective amount available for purchase of annuities.

vii. Associations have pointed out that unlike the facility under GPF, it is not possible to take refundable advances under NPS, even to meet obligatory social expenditure. This forces employees towards increased indebtedness as they have to borrow from elsewhere.

viii. Grievances also relate to tax treatment under NPS. While contributions and accumulations in NPS are exempt, lump sum withdrawals from NPS at any time are taxable at par with any other income. In addition, there is a service tax liability on any amount utilised for purchase of annuity.

ix. It has been pointed out that though NPS became effective from 2004, detailed instructions were issued only in late 2009 and in many cases the credit of contributions began from 2012. In the case of AIS officers in some States, contributions by the concerned State Government are yet to be fully made and deployed. The net result of this has been that contributions for the period 2004-2012 have not been made in full or have earned simple interest and did not get any market linked returns. Because of the prevailing confusion, contributions made by some AIS officer have been returned to them without interest. This will have a huge impact on the eventual corpus as the benefits of compounding were not available for the first 8 -9 years.

x. Individuals, in their presentation before the Commission, stated that annuities under NPS have no compensation for inflation unlike dearness relief under OPS. Further, in the case of OPS there is a revision in basic pension itself after every Pay Commission. This too is not available in respect of annuity of NPS subscribers.

xi. It has been pointed out that government employees are not given freedom of choice in choosing their fund manager based on performance and track record as the contributions are divided in a pre-specified ratio among selected Pension Fund Managers. It has been stated that government employees have no say in asset allocation of their money.

xii. Concerns were raised that the contribution of 10% + 10% will not be sufficient to create a corpus which provides reasonable assurance that pension will be 50 percent of the last pay drawn.

Source: http://7cpc.india.gov.in/

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7th Pay Commission Recommendations on LTC Advance and Medical Advance

7th Pay Commission Recommendations on LTC Advance and Medical Advance

Abolishing 12 Interest free advances recommended by 7th CPC

The 7th Pay Commission has , in a casual manner, recommended that all interest free advances to be abolished. The impact of this recommendation is yet un noticed by the central government employees

There are 12 Interest free advances are listed in that table provided in the 7th CPC Report. When hearing the news that 7th cpc has recommended to abolish interest free advances , every body thought that some advances like festival advances only will be abolished. But if you read the names of advances recommended for abolishment, it will give you little bit shock.

In general opinion, the amount that is paid for government servants in some occasions and for specific purposes and the same will be recovered through monthly instalments are considered advances.

But the advance paid for Medical treatment and LTC are not supposed to be included this list, since it is reimbursable in nature and will not be recovered by Government.

The amount paid as advances to the Medical treatment and LTC are not recoverable by government if there is no any default in the claim. since the expenses incurred should be reimbursed to the Govt servants according to their entitlements, the amount paid in advance can be adjusted against the claim of reimbursement is sanctioned. So there is no need of repaying the advance to government in respect of Medical and LTC advances.These should not be included in the list of interest free advances.

Eventually abolishing these advances will make the central government employees not to avail LTC facility and medical treatment in Private hospital, since the amount of 90 % of the expenses paid in advance will not be available for them any more due to this recommendation. By availing this advances they were able to manage the Medical Expenses and by availing this advance only they were able to bye Air or Train Tickets to go on LTC.

Without these advances, the Group C and B employees cannot imagine availing of LTC to visit some places in India with their family.

The Central Government should not accept the proposal of Abolishing these advances.

Source: GServants.com

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Briefcase Allowance of 7th Pay Commission

Briefcase Allowance of 7th Pay Commission

8.17.5 Certain categories of Central Government employees are entitled to reimbursement of expenditure incurred on purchase of briefcase/official bag/ladies’ purse as per the following provisions:

                            Pay Band/GP                                    Ceiling (Rs.)

                                  Apex                                       10000

                             HAG, HAG+                                        8000

                              GP 10000                                        6500

                      GP 7600 to GP 8700                                 5000

                      GP 4800 to GP 6600                                 4000

                      GP 4200 to GP 4600                                 3500

8.17.6 The periodicity of reimbursement is restricted to once in three years. No demands have been received regarding this allowance.

Analysis and Recommendations

8.17.7 The Commission is of the view that the present rates are adequate However, the ceiling shall further increase by 25 percent each time DA increases by 50 percent

Source: 7cpc.india.gov.in

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7th Pay Commission Shortcomings – BPS writes to FM

Bharat Pensioners Samaj, one of the oldest & the largest Federation of Indian pensioners writes to Finance Minister regarding the recommendations of 7th Pay Commission. The Federations insists to redress the eight serious shortcomings in the recommendations of 7th CPC. Particularly in the fitment factor issue, the Federation appeal to provide 2.81 fitment benefit for all employees without any discrimination. Read the detailed letter is reproduced and given below for your kind information…

BPS writes to Finance Minister pointing out 7th CPC shortcomings.

BHARAT PENSIONERS’ SAMAJ

(All India Federation of Pensioner’s Associations)

New Delhi -110014

SG/BPS/ 10/2015

New Delhi-Dt. 25-11-15

To

Dear Shri Arun Jaittleyji,

Honourable Minister of Finance

Government of India

Subject : 7th Central Pay Commission report released on 19.11.2015

Sir,

With deep resentment and pain BHARAT PENSIONERS SAMAJ( BPS) the oldest & the largest Federation of Indian pensioners which is a conglomerate of over 650 Pensioners Associations appeal to you to redress the following issues which 7th CPC failed address:

1. Ratio between minimum and maximum: Instead of reducing it is raised which is against the preamble of the Constitution of Indian Republic.

2. Minimum salary has been intentionally calculated to be lower to keep common fitment factor low. Counting employees’ wife as 0.80 unit is gender biase and is totally unjustified. Quantities & rates taken for the items in basket are unrealistic for example Rs 524.07 per month is provided Even the lowest category of Govt. accommodation is not available at this rate. Similarly rate of ‘Dal’ is taken to be 97.84 per Kg. No ‘ Dal‘ is or was available in the market at this rate. Quantity of Milk is taken to be 200 ml per unit per day which is too little for a vegetarian rate of Milk is taken to be Rs 37.40 per Kg which is lower than market rate.

3. According to 7th CPC 2.57 fitment factor is for all employees. But, in fact. 2.81 fitment has been given at Secy level. This is robbing Peter to pay Paul, violative of CPC own recommendation and that of Article 14 of the constitution of India. 2.81 fitment benefit should be provided to all employee without any discrimination.

4. Raising percentage of pension based on sustenance: Analysis given by CPC is silent on sustenance this is unjustified rejection.

5.OROP recommended by 7th CPC for all. But through the jugglery of pay matrix, for promotee officers and group ‘C.‘ it will end up only in modified parity. This needs rectification to ensure absolute parity for all.

6. Additional pension at 75 yrs of age is denied only because Defence Ministry did not agree this is rather absurd. If Defence Ministry does not want to have it, let them not have it. Why make others suffer on this account?

7. Medical facilities : While the Commission’s recommendations regarding merging of all postal dispensaries with CGHS dispensaries and inclusion of non CGHS covered postal Pensioners are welcome.

However, its recommendations regarding Health insurance for pensioners do not suit existing pensioners on account of no coverage of existing disease without lock-in period, no provision of OPD facility , payment of premium and less amount of coverage.

Undersigned, wish to draw your kind attention to para 9.5.18 (iii) of the 7th CPC and request you to create without delay a combined entity of CGHS, ECHS-RELHS which in terms of 7th CPC would result in a very strong network of health facilities for the Central Government employees/pensioners across the length and breadth of the country.

8.Scraping of New Pension scheme(NPS) :It has come out through 7th CPC report that though NPS was introduced more than a decade back Govt; to date could not firm up rules in this regard. With the result over 300000 employee recruited after 2004 may not have enough funds in their accounts at retirement to ensure financial security. Center and state Govt’s share of contribution is insufficient and these governments are not depositing their contribution in time, investments are subjected to service tax & withdrawals are taxable under Income Tax with the result there would not be enough money for reasonable post retirement financial security. Due to ever rising inflation, this situation will go on worsening year by year and will go out of hand by the time of retirement of the beneficiary. This is more than sufficient reason to scrap NPS & to revert to pre 2004 defined benefit Pension Scheme.

Thanking you in anticipation.

Sd/-

S.C.Maheshwari

Secy. General Bharat Pensioners Samaj

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Why we must not grudge them a pay hike

Why we must not grudge them a pay hike

In the heyday of Indian socialism, the perception of government was benign. In today’s climate of liberalisation, the government is viewed with hostility. That must explain the negative reaction both in the media and amongst the public at large to the increases in pay for Central government employees recommended by the Seventh Pay Commission (SPC).

The pay hikes are modest — embarrassingly so in comparison with pay increases and bonuses in the private sector. Yet, media reports talk of a ‘bonanza for babus’. The impact on the fiscal can be easily digested by the Indian economy. Yet, analysts warn of slippages in the fiscal deficit, a possible boost to inflation, and a setback to public investment. Do we want to run the government — which comprises not just civil servants but the police, armed forces, nurses, doctors, regulators and academics — at all? Or have we persuaded ourselves that all of the government is simply money down the drain?

Setting pay in government

The SPC’s figures don’t come out of nowhere. The Commission has a rigorous basis for setting pay in government. It arrives at a figure for minimum pay in government with reference to norms laid down by the 15th Indian Labour Conference (ILC) in 1957. The ILC had said that the minimum wage should cover the basic needs of a worker and his family, that is, a spouse, and two children who are below the age of 14. The SPC has spelt out the norms it has used for determining basic needs. It has gone by food requirements specified by a well-known nutritionist. To this are added provisions for clothing, fuel and lighting, education, recreation, festivities, medical expenses, and housing. There is an addition of 25 per cent to the total of the above to provide for the skill factor (the basic needs having been determined for an unskilled person). The SPC report provides detailed computations for each of these items. No reasonable person can accuse the SPC of being overgenerous.

Based on these norms, the SPC arrives at a minimum wage of Rs. 18,000 for a government employee. This is 2.57 times the minimum pay in the Sixth Pay Commission. The increase over the projected pay on the current basis as of January 1, 2016 is 14.3 per cent. This is the second lowest increase recommended by any Pay Commission since the first one, and it is way below the 54 per cent increase following the last one. The multiplication factor of 2.57 is used to arrive at pay for all levels of government except for a few at the top where a slightly higher multiple is used.

As before, pay at the lower levels of government is higher than in the private sector; at the top, the position is reversed. In today’s context, this may not be a bad thing at all. Pay in the private sector today is contributing towards massive inequalities in Indian society. Having a very different structure in government is a useful corrective to trends in the private sector. It will help contain tensions created by rising inequality.

Good news

So far as the impact on government finances is concerned, the SPC numbers provide a stream of good news. First, the impact of the pay hike on the Central government (including the railways) will amount to 0.65 per cent of GDP. This is less than the impact of 0.77 per cent of GDP on account of the Sixth Pay Commission.

Second, the impact on the Central government (excluding Railways), which is what matters when it comes to the Union budget, is 0.46 per cent of GDP. As some of the increase in salary comes back to the government as taxes, the impact, net of taxes, will be even less — say, 0.4 per cent of GDP (assuming an average tax rate of around 20 per cent on government pay). This is a strictly one-off impact. The correct way to view it, therefore, would be to amortise it over a period of, say, five years. The annual impact then is 0.08 per cent of GDP. The impact on the fiscal at the central level is barely noticeable.

Trends in the wage burden in the government are worth noting. Pay and allowances in the Central government have remained stable since 2010-11 at around 1.8-2.0 per cent of GDP. Thus, pay and allowances have been rising at roughly the same level as nominal GDP or 11-12 per cent. This is the increase after taking into account increments, adjustments for dearness allowance and promotions. In the private sector, such an increase would be considered laughable at all but the lowest level.

Pay, allowances and pension (PAP) as a proportion of government expenditure has been declining sharply. In 1998-99, PAP was 38 per cent of revenue expenditure. The SPC estimates that this figure has fallen to 18 per cent in 2015-16. (It will go up to 22 per cent in 2017-17 consequent to the SPC award, but will decline thereafter, as pay grows at a lower rate than government expenditure). The implication is striking: in financial terms, the workforce in government has been effectively downsized by nearly half over the past 17 years.

Pay in the private sector is contributing towards massive inequalities in society. Having a different structure in government will help contain tensions created by this inequality

Even in terms of numbers, India’s central bureaucracy (including the Railways but excluding the armed forces) has neither been increasing in recent years nor hugely bloated in absolute terms. The number of employees grew to a peak of 41.76 lakh in 1994. It has declined since to 38.9 lakh in 2014. Of the total, 13.8 lakh is accounted for by security-related entities (police and defence civilians). Railways and Post, which perform commercial functions, account for 15 lakh personnel. There are other commercial departments as well, such as Communications. Excluding security and commercial functions, the total central employment is just 4.18 lakh. “The ‘core’ of the government…”, the SPC report notes, “is actually very small…”

The SPC substantiates its point by comparing India’s Central government workforce with that of the federal government workforce in the U.S. In 2012, the non-postal civilian workforce in the U.S. was 21.3 lakh. In India, the corresponding figure in 2014 was 17.96 lakh. The number of personnel per lakh of population in India was 139 in 2014, way below the figure of 668 for the U.S. India’s bureaucracy needs not so much downsizing as right-sizing — we need more doctors, engineers, IT specialists, tax experts, judges, and so on.

The government is not bound by the SPC’s recommendations. It can opt for higher pay hikes as happened with the previous Pay Commission. Assuming the government goes along with the SPC, what impact on growth can we expect? Increased pay for government employees means greater government expenditure and hence a fiscal stimulus — provided government expenditure on other counts is not reduced and the fiscal deficit rises. This happened at the time of the Sixth Pay Commission. Higher wages for government employees contributed to a higher fiscal deficit and helped stimulate growth in the short run.

This time round, the Finance Ministry insists that it will stick to its fiscal deficit target for 2016-17 after providing for the SPC pay hike. If it does so, the reduction in fiscal deficit will be contractionary. Hence, the pay hike will not lead to economic expansion in the aggregate. However, greater income in the hands of government employees could favourably impact sectors such as the real estate, automobiles and consumer goods.

(T.T. Ram Mohan is professor at IIM Ahmedabad)

//copy//Courtesy : The Hindu (dt.24th Nov 2015)

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7th CPC Recommended Sports Related Allowance

7th CPC Recommended Sports Related Allowance

Allowances Covered

8.12.1 Alphabetical list of Allowances covered here is as under:

1. Out of Pocket Allowance

2. Refreshment Allowance

Out of Pocket Allowance

8.12.2 This allowance is paid to players and coaches of Indian Railways who participate in sports events abroad, in lieu of Daily Allowance on Foreign Travel, to take care of subsidiary expenses, at the rate of $35 per day. There is a demand to replace this allowance with Daily Allowance on Foreign Travel.

Analysis and Recommendations

8.12.3 The demand has merit. Accordingly it is recommended that Out of Pocket Allowance should be abolished and players and coaches participating in sports events abroad should be paid Daily Allowance on Foreign Travel.

Refreshment Allowance

8.12.4 This allowance is paid to players, coaches, technical officials and Railway Sports Promotion Board (RSPB) observers during National and Indian Railways’ camps and Championships, to support additional food requirements, at a uniform rate of Rs.240 per day. There are demands for three fold raise in the amount of this allowance.

Analysis and Recommendations

8.12.5 While Refreshment allowance is understandable for players/coaches/technical officials, it is not justified for observers of Railway Sports Promotion Board (RSPB). Therefore, since the allowance is not indexed to DA, it is recommended that Refreshment Allowance should be increased by a factor of 2.25 to Rs.540 per day. The amount will rise further by 25 percent each time DA crosses 50 percent. However, the allowance will be paid only to players, coaches and technical officials.

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Release of Funds on ‘Other Motor Conveyance Advance’

By FAX/ Speed Post

OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS (Fys)

1O-A. SHAHEED KHUDIRAM BOSE ROAD. KOLKATA-700001.

No.528/AN-VI (Central)/ Oth. Motor Con. Adv.

Date:19.11.2015.

To

All Cs F & A(Fvs)

Subiect: Release of Funds on ‘Other Motor Conveyance Advance’- (00/012/23) during 2015-2016.

In this connection, it is stated that a portion of Fund under the Head ‘Other Motor Conveyance Advance’- (00/012/23)’ received from the HQ Office CGDA, Delhi Cantt. In BE 2015-2016 is still available awaiting release.

To enable this Office to release the fund, projection, if any, along with the list of applications received from the eligible Officials willing to purchase Scooter/Motor Cycle/Moped of your Office and also sub Offices under your charge, is invited. Release of funds will be considered subject to availability and strictly on seniority basis of application of the individuals.

It is, therefore, requested that list of applicants. serving the Office under your Group Charge, stating Name, Designation, A/c. No., Date of Application. Nature of Purchase, Amount applied for and Name of Office where serving may please be furnished urgently by return Fax so as to reach this office by 17th December, 2015 positively. List/s received in this Office later shall not be entertained.

This may please be accorded on “TOP PRIORITY”.

Sd/-

(V.Nageswaraw Rao)

SR.Accounts Officer (AN)

Source:http://pcafys.nic.in/files/motor_car_advance.pdf

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7th CPC Report – NFIR Writes to FM and Cabinet Secretary

NFIR

National Federation of Indian Railwaymen

3, CHELMSFORD ROAD, NEW DELHI – 110 055

No.IV/NFIR/7th CPC/CORRES (MoF)

Dated: 23/11/2015

Shri Arun Jaitley,

Hon’ble Finance Minister,

134/North Block,

New Delhi

Respected Sir,

Sub: Seventh Central Pay Commission’s Report — serious resentment among employees against retrograde recommendations — reg.

There is widespread disappointment and resentment among all sections of Central Government employees against the retrograde recommendations of 7th Central Pay Commission.

In this connection, the National Federation of Indian Railwaymen (NFIR) places below core recommendations briefly which have generated unhappiness and anger among the employees in Railways as well as those in other departments of the Central Government:-

I. Minimum salary:

The Pay Commission has illogically recommended the minimum salary Rs.18,000/- p.m. We have explained our case through JCM Staff Side memorandum and also during the meetings with the Pay Commission that the minimum wage of the employees needs to be fixed at Rs. 26,000/- p.m. While the Pay Commission has briefly discussed our proposal in Chapter 4.2 of its report, ‘Determination of Minimum Pay’ in para 4.2.5 & 4.2.6 (at Page 61), it is sad to state that the 7th CPC has not only mutilated Dr.Aykroyd formula for determination of minimum wages but also changed Hon’ble Supreme Court’s decision wherein 25% to be added to the salary computed towards meeting the expenses on marriage, recreation, festivals, health, education etc. The housing component has also been reduced to 3%, with the aim to peg the minimum salary at Rs.18,000/- p.m.

II.Fitment formula:

(a) The multiplying factor 2.57 recommended by the 7th Central Pay Commission, vide para 5.1.27 (Page 77) of the Report, is totally illogical. Kind attention is invited to the pay increase granted pursuant to implementation of 5th & 6th Central Pay Commissions in the years 1996 & 2006 as placed below:-

Vth CPC – 40% hike with effect from 01/01/1996.

VIth CPC – over 32% hike (1.86 multiplying factor) w.e.f.01/01/2006

(b) The VIIth CPC has also admitted in its report vide Chapter 4.2, para 4.2.9 (Page 63) the percentage increase of pay in the past as below:-

Vth CPC 31% w.e.f. 01/01/1996

VIth CPC 54% w.e.f. 01/01/2006

VIIth CPC 14.3% (since recommended)

The above facts, reveal that the VIIth Pay Commission has given perverse recommendation on “Minimum Wage” and “fitment formula”, which has led to all – round dissatisfaction among employees.

III. Abolition of Allowances:

The pay Commission has recommended for abolition of various allowances without looking into the background and justification on which those allowances were granted initially.

IV. House Rent Allowance:

Reduction of House Rent Allowance from the present ceiling of 30,20 & 10 to 24, 16 & 8 percent for Classes X,Y & Z cities is not proper. The house rents are very exorbitant in cities and small towns.

The Railway employees are extremely unhappy over non-grant of improved pay scales inspite of the fact that their duties are unique, complex and hazardous.

NFIR, therefore, requests the Government to take steps to modify the recommendations suitably for enhancing the minimum wage and fitment formula through discussions with staff side Federations and see that the atmosphere of confrontation is avoided. There are also many anomalies and aberrations in the report which are required to be dealt through discussions for rectification.

Yours Sincerely,

Sd/-

(Dr.M.Raghavaiah)

General Secretary

Source: NFIR

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Meetings with 7th CPC and Cabinet Secretary – NC JCM Staff Side

Meetings with the VII CPC and the Cabinet Secretary – resentment conveyed to Govt. of India

Shiva Gopal Mishra

Secretary

Ph.: 23382286

National Council (Staff Side)

Joint Consultative Machinery

Central Government Employees

13-C, Ferozshah Road, New Delhi – 110001

E Mail : nc.jcm.np@gmail.com

No.NC/JCM/2015

Dated: November 20, 2015

All Constituents of the

National Council(JCM)

Dear Comrades,

Sub: Meetings with the VII CPC and the Cabinet Secretary

Today I met the Chairman, VII CPC, Justice Shri Ashok Kumar Mathur, and expressed our anguish against retrograde recommendations of VII CPC, particularly reg. Minimum Wage, reduction in HRA and CCL, non-redressal of NPS, abolition of various allowances, examination of MACP benefit, etc. etc.

Tough he had given argument, but I told him about the anguish of all the constituents of the JCM(Staff Side), who feel that they have been betrayed by the VII CPC.

Comrades! I have also met the Cabinet Secretary, Shri P.K. Sinha, in the afternoon and handed him over a copy of the attached letter and requested him to convene meeting of the NC/JCM at an earliest as well as to intervene in the matters raised by the JCA in case of report of VII CPC at an earliest. The Cabinet Secretary has promised that he would try to fix the meeting at an earliest and also look into the points raised by the NC/JCM(Staff Side) for VII CPC.

With fraternal greetings!

Yours faithfully,

Sd/-

(Shiva Gopal Mishra)

Secretary

Source : http://ncjcmstaffside.com/

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Setting up of Implementation Cell, 7th CPC in the Department of Expenditure – Finmin order

A-11019/8/2015-Ad.I

Government of India

Ministry of Finance

Department of Expenditure

North Block,

New Delhi. Dated 20 November, 2015

OFFICE MEMORANDUM

Subject: Setting up of Implementation Cell, Seventh Central Pay Commission in the Department of Expenditure.

An Implementation Cell for processing and implementing the accepted recommendations of the Seventh Central Pay Commission is set up in the Department of Expenditure, M/o Finance for a period of one year with effect from the 20th November, 2015, with the complement of staff structure as mentioned under:

       Sl .No.                              Category of Posts No. of Posts

          1                                                Director 1

          2                                   Under Secretary/ Desk Officer 2

          3                                            Private Secretary 2

          4                                            Personal Assistant 2

          5                                        MTS [Multi-Tasking Staff] 2

2. Joint Secretary (Personnel), Deptt. of Expenditure shall head the Implementation Cell in addition to her current responsibility till the post of Joint Secretary, Implementation Cell is created.

3. This issues with the approval of Hon’ble Finance Minister.

Sd/-

(S.K.Biswas)

Under Secretary to the Govt. of India

Source: www.finmin.nic.in

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Bonus Schemes and Performance Related Pay

Bonus Schemes in the Central Government : Apart from DAE/DoS, there are bonus payments to Group `B’ (non-gazetted) and Group `C’ Central Government employees. The bulk of these employees are covered under the Productivity Linked Bonus (PLB) Scheme, which is implemented in Railways, Posts and Telecommunications, production units under the Ministry of Defence and other establishments.

The functioning of the PLB Scheme was reviewed in 1982-83 by a Group of officers. The Group of officers also considered the demands for grant of bonus made by those Central Government employees who were not covered by the PLB Scheme. The Group suggested evolution of a productivity linked bonus scheme for Central Government employees as a whole. Based on the recommendations of the Group, and pending evolution of a single scheme of bonus for employees, an Adhoc Bonus Scheme was evolved and the remaining employees, who were not covered by the PLB Scheme, were allowed ex-gratia payment. The Commission notes that the financial outgo on these two bonus schemes stood at ?1847.08 crore for the year 2013-14.

These Bonus schemes have no clear, quantifiable targets and performance evaluation of any individual, therefore, is not possible in an objective fashion. The Commission notes that Ministry of Finance has been insisting on revision of the PLB Scheme. It has been suggested, inter-alia, that the PLB scheme should be on the basis of an input-output ratio, should be based on productivity and profitability and that productivity should be assessed on financial parameters based on profitability of the organisation.

The VI CPC too had recommended that all departments should ultimately replace the existing PLB Schemes with PRIS. The VI CPC further opined that in places where PLB is applicable and it is not found feasible to implement PRIS immediately, the existing PLB schemes may be continued in a modified manner where the formula for computing the bonus has a direct nexus with the increased profitability/productivity under well-defined financial parameters.

The Commission notes that since PRIS could not be implemented, it could not supplant the existing system of Performance Linked and Adhoc Bonus Schemes.

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7th CPC Allowance related to Working on Holidays

7th Pay Commission Recommendations Allowance related to Working on Holidays

Holiday Compensatory Allowance

2. Holiday Monetary Compensation

3. National Holiday Allowance

8.6.2 Employees, who are regularly required to work on holidays, are compensated in a variety of ways. Some, like the employees of Delhi Police and the CISF, are granted an extra month’s pay per year. Employees of other CAPFs are granted extra thirty days’ leave. Some other categories of staff are paid allowances, which are dealt with in this section. There are 3 such allowances.

Holiday Compensatory Allowance

8.6.3 It is a compensation for non-gazetted staff of IB who are required to perform duties on holidays and weekends; granted at the rate of one day’s (Basic Pay + DA) for up to thirty days in a financial year. No demands have been received regarding this allowance.

Analysis and Recommendations

8.6.4 The Commission notes that employees in almost all ministries/departments are, sometimes, required to work on weekends. They are usually compensated by providing a “compensatory off.” Thus, grant of an allowance for weekend working is not justified.

8.6.5 At the same time, the sensitive, and time bound nature of work done by IB should also be kept in mind. Therefore, it is recommended that the non-gazetted staff of IB, presently covered under Holiday Compensatory Allowance, should, henceforth, be covered by National Holiday Allowance. They will be granted this allowance for up to twelve holidays in a year (including the three National Holidays) at the rates prescribed. Accordingly, Holiday Compensatory Allowance, as a separate allowance, should be abolished.

Holiday Monetary Compensation

8.6.6 This allowance is granted in Department of Posts and is payable to postmen and other departmental staff who are required to perform duty on second holiday if three consecutive holidays occur. The existing rates are:

           Category                                          Rate of Remuneration

           Supervisor                            Rs.85 Per Holiday for 4 Hours

        Postal Assistant                            Rs.85 Per Holiday for 4 Hours

   Postmen/sorting Postmen                              Rs. 85 Per Holiday

      Multi – tasking Staff                     Rs. 60 Per Holiday for 4 Hours

8.6.7 Demands have been received to increase the rate of this allowance to Rs.600 per holiday.

Analysis and Recommendations

8.6.8 Since the allowance is not DA indexed, it is proposed to raise the amount to Rs.200 per holiday for Supervisors, Postal Assistants and Postmen/Sorting Postmen; and Rs.150 per holiday for Multi-tasking Staff. The rate of allowance will further increase by 25 percent each time DA increases by 50 percent.

National Holiday Allowance

8.6.9 This allowance is paid to non-gazetted Railway employees who are rostered to work on a “National Holiday.” The existing rates are:

          Pay in Pay Band + Grade Pay                                  Rate

                   Up to Rs. 7260                                 Rs. 256 per day

              Rs. 7261 – Rs. 9700                                 Rs. 318 Per day

Rs. 9701 and above (Limited to non-Gazetted Staff) Rs. 420 Per day

8.6.10 There are demands to increase the amount of this allowance to 1.5 x (one day’s Basic Pay + DA)

Analysis and Recommendations

8.6.11 The Commission notes that although there are only three National Holidays, this allowance is granted for twelve days in a year due to operational constraints. Also, the allowance is already partially indexed to the DA. Hence, it is recommended that the amount should be increased by 50 percent to the following:

                      Level                            Rate of Allowance (Per day)

                     1 and 2                                           Rs. 384

                      3 to 5                                           Rs. 477

    6 to 8 (Limited to non-gazetted Staff)           Rs. 630

8.6.12 The rate of allowance will further increase by 25 percent each time DA rises by 50 percent.

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Promotion of Government Servants exonerated after retirement – Procedure and Guidelines to be followed

No.22011/3/2013-Estt.(D)

Department of Personnel & Training

Establishment (D)

Dated: 23.11.2015

Subject:- Promotion of Govt. Servants exonerated after retirement – Procedure and Guidelines to be followed – Regarding.

The Department intends to issue instructions on the subject- “Promotion of Govt. Servants exonerated after retirement – Procedure and Guidelines to be followed”. Draft instructions proposed to be issued are enclosed. Ministries/Departments are requested to offer their comments/views, if any, in this regard latest by 22nd December, 2015 at the e-mail address dire1-dopt@nic.in

Sd/-

(S.K. Prasad)

Under Secretary

No.22011/3/2013-Estt (D)

Government of India

Ministry of Personnel, Public Grievances and Pensions

(Department of Personnel and Training)

North Block, New Delhi .

Dated: 23rd November, 2015

OFFICE MEMORANDUM

Subject:- Promotion of Govt. Servants exonerated after retirement — Procedure and Guidelines to be followed – Regarding.

The undersigned is directed to invite reference to the Department of Personnel and Training Office Memorandum No. 22011/4/91-Estt(A) dated 14th September, 1992 regarding procedure and guidelines to be followed by DPC in respect of Government servants against whom disciplinary/court proceedings are pending or whose conduct is under investigation. In case the Government servant is covered under any of the three conditions as mentioned in Para 2 of OM dated 14.09.1992, the recommendations of the DPC are to be kept in ‘sealed cover’ and subsequent action regarding opening of sealed cover will depend on the outcome of the disciplinary/criminal proceedings.

2. If on conclusion of the disciplinary/ criminal proceedings, the Government servant is exonerated, the procedure prescribed in para 3 of the OM dated 14-9-1992 is to be followed. This provides as under:-

“On the conclusion of the disciplinary case/criminal prosecution which results in dropping of allegations against the Govt. servant, the sealed cover or covers shall be opened. In case the Government servant is completely exonerated the due date of his promotion will be determined with reference to the position assigned to him in the findings kept in the sealed cover/covers and with reference to the date of promotion of his next junior on the basis of such position. The Government servant may be promoted, if necessary, by reverting the junior most officiating person. He may be promoted notionally with reference to the date of promotion of his junior. However, whether the officer concerned will be entitled to any arrears of pay for the period of notional promotion preceding the date of actual promotion, and if so to what extent, will be decided by the appointing authority by taking into consideration all the facts and circumstances of the disciplinary proceedings/criminal prosecution. Where the authority denies arrears of salary or part of it, it will record its reasons for doing so. It is not possible to anticipate and enumerate exhaustively all the circumstances under which such denials of arrears of salary or part of it may become necessary. However, there may be cases where the proceedings, whether disciplinary or criminal, are, for example delayed at the instance of the employee or the clearance in the disciplinary proceedings or acquittal in the criminal proceedings is with benefit of doubt or on account of non-availability of evidence due to the acts attributable to the employee etc. These are only some of the circumstances where such denial can be justified.”

3. The applicability of above provisions in so far as it relates to cases where the Government Servant, who has retired by the time he is exonerated of all the charges has been considered in respect of the following cases:

i. Where the promotion order pertaining to the relevant DPC has been issued and the officers empanelled have assumed charge prior to the date of superannuation of the retired Government Servant; and

ii. The retired Government Servant would have been in service and assumed charge of the post had the disciplinary proceeding not been initiated against him/her.

4. It has been decided in consultation with the Department of Expenditure, Department of Pensions & Pensioners’ Welfare and the Department of Legal Affairs that notional promotion and payment of arrears of pay, if any, for the period of notional promotion till the date of retirement, to such a retired Government servant if found fit on opening of the sealed cover is to be decided by the appointing authority in terms of Para 3 of OM No.22011/4/91-Estt.(A) dated 14/9/1992.

5. A retired Government employee who is considered for notional promotion from the date of promotion of his next junior after opening of the sealed cover would also be entitled to fixation of pension on the basis of such notional pay on his notional promotion.

6. The provisions contained in this Office Memorandum shall become operational from the date of issue of this Office Memorandum. Past cases settled in accordance with the earlier provisions shall not be reopened.

Sd/-

(G. Jayanthi)

Director(E-I)

Source: http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02est/22011_3_2013-Estt.D-23112015.pdf

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