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Thursday, June 30, 2016

Hike in Seventh Pay Commission salaries inadequate: Cong

 Congress tonight accused the Modi government of "letting down" Central government employees by "inadequate" hike in salaries and allowances in the Seventh Pay commission recommendations in time of run away inflation.
"98 lakh central government employees feel disillusioned, let down and short changed by the lopsided and inadequate hike in salaries and allowances by Modi government in these times of run away inflation and all round increase in prices", party's chief spokesman Randeep Surjewala said.
Claiming that the hike is the "lowest in the last seven decades", he said the hike in salaries and allowances is a mere 15 per cent on basic pay and not 23.5 per cent as is being wrongly claimed by the government.
"This gets even more stark when compared to the fact that 6th Pay commission had recommended a 20 per cent hike in salaries and allowances but the then Congress government doubled it to 40 per cent. 7th Pay Commission recommended a hike of 14.29 per cent and Modi government merely raised it to a pittance of 15 per cent", he said.
He said even the ratio between the lowest and the highest salary has increased instead of the gap being narrowed. "Naturally, employees at the lower rung of the salary will suffer the most", he added.
"7th Pay Commission implementation establishes the mal-intent and lack of sincerity of Modi government", he added.
For example, highest salary has increased from Rs 90,000 to Rs 2,50,000 but the lowest salary has been increased from Rs 7,000 to Rs 18,000 only, he said.
Earlier, the ratio was 1:12. Universal demand of all parties and employees federations was for a ratio of 1:8. On the contrary, Modi government has increased the ratio to 1:14.
The Congress Party has always stood with the workers who make India great, be they in the government sector or be they farmers or rural labourers, he claimed. SPG RG

Source:-The Times of India

7th Pay commission: RSS-affiliated BMS threatens stir

An RSS-affiliated labour union today raised a banner of revolt against the Centre's decision to hike the pay of its employees on 7th Pay Commission's recommendations, saying it will hold country-wide protests on July 8 against the move.
Rejecting the pay hike, Bharatiya Mazdoor Sangh (BMS) said government has "disappointed" the employees and it may lead to industrial unrest.
BMS also rejected the Model Shops and Establishments Bill, alleging that by approving it the government has gone back on its word of coming out with a draft bill and getting it approved at the tripartite consultations with labour unions.
The union charged the Centre with increasing disparity between minimum and maximum pay and demanded that there should be a uniform minimum pay of Rs 18,000 across the country, including in the private sector.
"Government has disappointed us by ignoring the objections raised by employees on recommendations of 7th Pay Commission. This will lead to industrial unrest for which the government will be responsible.
"The fitment formula should be 3.42 instead of 2.57 as approved by the government. Similarly, annual increment should be 5 per cent instead of 3 per cent given. The disparity between the minimum and maximum pay has also been increased," BMS general secretary Virjesh Upadhyay said in a statement.
He said, the Sangh will organise protests across the country in all districts on July 8 and will discuss at its national executive in August the alternative of going on a strike.
In a bonanza, one crore government employees and pensioners will get a 2.5 times hike in basic pay and pensions under the 7th Pay Commission recommendations that will cost the exchequer annually Rs 1.02 lakh crore, which the government says will have a multiplier effect on economy. The new scales of pay provide for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. Secretary, it would go up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary will be Rs 56,100. SKC SMJ RG SMJ.

Source:-The Times of India

Cabinet decisions on Implementation of the recommendations of Seventh Central Pay Commission

To view the Ministry of Finance release on Cabinet decisions on Implementation of the recommendations of Seventh Central Pay Commission please Click Here. 

Report of the Committee set up under the chairmanship of Dr. Devesh Chaturvedi, Joint Secretary, DoPT to examine the recommendations of the Committee of Experts on suo motu disclosure under Section 4 of the RTI Act, 2005.

To view please Click Here.

Cabinet approves Cadre Review of Group 'A' Officers of Central Reserve Police Force

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Cadre Review of Group 'A' Executive officers of Central Reserve Police Force (CRPF) with net creation of 90 posts of various ranks from Deputy Commandant to Special DG ranks. After creation of these posts in CRPF, the operational efficiency and capacity building of the Force including its administrative capabilities would be enhanced.

Under the cadre review, the increase in existing structure of Group 'A' posts from 4210 to 4300 posts is as under:-

1.     Increase of one post of Special DG (HAG + level).
2.     Net increase of 11 posts of Inspector General (SAG level).
3.     Net increase of 277 posts of DIG/Commandant/2-l/C (JAG level).                                         
4.     Net reduction of 199 posts of Deputy Commandants (STS level).

Background:

The Central Reserve Police Force (CRPF), is one of the Central Armed Police Forces. It was formed in 1939. The first Cadre Review of the service was conducted in 1983 and the second and last Cadre Review was conducted in 1991. Though no formal cadre review has been carried out after 1991, major augmentation-cum-restructuring were carried out in 2004 and 2009. During these augmentations, additional battalions were raised without proportionate addition of supervisory and support staff.

Source:-PIB

7th pay panel hike: Cabinet Secretary's Rs 2.5 lakh cheque no match for corporate biggies

Top jobs in India's bureaucracy just became a bit more lucrative with Cabinet approval for salary increases recommended by the Seventh Central Pay Commission, but they're still no match for what corner-office occupants of private companies are paid. The Cabinet Secretary, the government's top civil servant, will now draw Rs 2.5 lakh a month. 

In comparison, the chief executive officer in a Rs 1,000 crore company will get a "minimum Rs 10 lakh a month and this could easily go up to Rs 25 lakh a month," said R Suresh, managing director of RGF Executive Search. To be sure, bureaucrats get benefits such as bungalows with gardeners and security guards in central DELHI, among others. Comparisons are only of basic pay and exclude perks. 


"The lure of the top IAS (Indian Administrative Service) jobs goes beyond money. It is a highly prestigious opportunity where you are part of decision-making at a much macro level and creating a social impact," said a former IAS officer who did not wish to be identified. "There is a stark difference from the private sector, keeping in mind that bureaucrats manage much bigger assets for the government. 

However, bureaucrats get several perquisites such as housing in prime location, travel, medical, pension, which even private sector CEOs get, but that zamindari style is not there," said Suresh of RGF Executive Search. However, he said that with huge salaries comes big pressure. In the private sector you have to be at the cutting edge of things all the time. The pressure to perform and project that you are performing is very high, he added. 

According to a study by the Indian Institute of Management, Ahmedabad, commissioned by the Seventh Pay Commission, compensation of a CEO is positively related to profit. The study said that compensation strategies of companies and their ability to pay are also influenced by factors such as its prospects in the market and assessments by prospective employees of its viability and success. 

The IIM Ahmedabad report suggested the government has to be highest paymaster for roles that are important to society, the nation or have long-term value. Besides, it mentioned that pay commissions review emoluments once in adecade but corrective action may be required more frequently. "Private sector pay was low till the 1980s, but post liberalisation, compensation has taken off significantly, increasing more than 10-fold in 25 years," said K Sudarshan, managing partner at EMA Partners, executive search firm.

Source:-The Economic Times

Wednesday, June 29, 2016

7th Pay Commission:-15 things you need to know

1. The present system of pay bands and grade pay has been dropped and a new pay matrix as recommended by the commission has been approved. Separate pay matrices have been drawn up for civilians, defence personnel and for military nursing service.
By doing away with the pay bands and grade pay, the new pay matrix ensures that there are no abrupt jumps in salaries upon promotion in different pay bands.
2. All existing levels have been absorbed in the new structure; no new levels have been introduced.
3. The minimum pay has been increased from Rs 7,000 to Rs 18, 000 per month. Starting salary of a newly recruited employee at lowest level will now be Rs 18,000 whereas for a freshly recruited Class I officer, it will be Rs 56,100.
4. For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all levels in the pay matrices. After taking into account the DA at prevailing rate, the salary/pension of all government employees/pensioners will be raised by at least 14.29 % as on January 1, 2016.
5. Rate of increment has been retained at 3%. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.
6. The Cabinet approved further improvements in the defence pay matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.
7. Some other decisions impacting the employees including defence and Combined Armed Police Forces (CAPF) personnel include:
*Gratuity ceiling enhanced from Rs 10 to 20 lakh. The ceiling on gratuity will increase by 25% whenever DA rises by 50 %.
*A common regime for payment of ex-gratia lump sum compensation for civil and defence forces personnel payable to next of kin with the existing rates enhanced from Rs 10-20 lakh to Rs 25-45 lakh for different categories.
*Rates of military service pay revised from Rs 1,000, Rs 2,000, Rs 4,200 and Rs 6,000 to Rs 3,600, Rs 5,200, Rs 10,800 and Rs 15,500 respectively for various categories of defence forces personnel.
*Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit armed forces any time between seven and 10 years of service.
*Hospital leave, special disability leave and sick leave absorbed into a composite new leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalisation on account of WRIIL.
8. The Cabinet also approved the recommendation of the commission to enhance the ceiling of House Building Advance from Rs 7.50 lakh to Rs 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely advances for medical treatment, travel allowance on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.
9. The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs 1,470. However, considering the need for social security of employees, the Cabinet has asked ministry of finance to work out a customised group insurance scheme for central government employees with low premium and high risk cover.
10. The general recommendations of the commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed committee which is to submit its report within four months.
11. The commission examined a total of 196 existing allowances and, by way of rationalisation, recommended abolition of 51 allowances and subsuming of 37 allowances. Given the significant changes in the existing provisions for allowances, which may have wide ranging implications, the cabinet decided to constitute a committee headed by the finance secretary for further examination of the recommendations of the pay panel on allowances. The committee will submit its reports within four months. Till a final decision, all existing allowances will continue to be paid at the existing rates.
12. The cabinet also decided to constitute two separate committees: (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the commission’s report.
13. Apart from the pay, pension and other recommendations approved by the cabinet, it was decided that the concerned ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the commission has not been able to arrive at a consensus.
14. As estimated by the pay panel, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs 1,02,100 crore. There will be an additional implication of Rs 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.
15. Finance minister Arun Jaitley said the National Democratic Alliance government has taken the decision to implement the report of the 7th Pay Commission much faster than in the past.
Source:-The Hindustan Times

Unions reject pay hike, threaten to go on strike

New Delhi/Chennai, Jun 29 (PTI) The Confederation of Central Government Employees today rejected the pay hike announced by the government and threatened to go on a strike next week, a decision which got support from the central trade unions.

The Confederation said the pay hike approved by the Cabinet on the 7th Central Pay Commission's recommendations is "not acceptable".

RSS affiliate Bharatiya Mazdoor Sangh (BMS) and other trade unions also rejected the hike, saying this is the lowest increase in the past 17 years that would increase disparity between the minimum and maximum pay.

Central trade unions have also sided with government employees and have given a call to hold nationwide demonstrations against the pay hike.

"In the prevailing economic conditions, the proposed hike as per the Pay Commission is inadequate. It is not acceptable to us," M Duraipandian, General Secretary, Confederation of Central Government Employees and Workers, Tamil Nadu, said.

He added the Confederation will be forced to advance the indefinite strike call to July 4 instead of July 11, if the government does not heed to its demand of revising the hike.

Earlier in the day, its members staged a demonstration at Rajaji Bhavan in Chennai, home to several state government's offices.

All India Trade Union Congress Secretary D L Sachdev said: "It is the lowest increase in last 17 years. Central trade unions will support the strike call given by central government employees." 

While, BMS said it will organise country-wide protests on July 8 against the decision, adding the government has "disappointed" the employees and it may lead to industrial unrest.

"The formula should be 3.42 instead of 2.57 as approved by the government. Similarly the annual increment should be 5 per cent instead of 3 per cent given. The disparity between the minimum and maximum pay has also been increased," BMS General Secretary Virjesh Upadhyay said.

In a statement, he said the Sangh will organise protests across the country in all districts on July 8 and will discuss on the alternative of going on a strike at its national executive in August.

BMS also demanded for a uniform minimum pay of Rs 18,000 per month to all the workers including the private sector.

20 civil services now ask govt to end IAS supremacy

New Delhi, Jun 29 (PTI) Armed with the Union Cabinet's decision of accepting seventh pay commission recommendations, a confederation representing thousands of officers of 20 civil services, including Indian Police Service (IPS) today asked the government to give equal pay and job-related opportunities enjoyed by those in IAS.

"The government has accepted the panel's recommendation on pay and allowances in toto. It has given a very strong hope to all other services that they will get parity in service as recommended by two of three members of the commission.

"We request the government that the majority recommendation on the issue of pay and service parity are also implemented very soon.," said Jayant Mishra, convener of Confederation of Civil Services Association (COCSA).

The association comprises 20 services including IPS, Indian Revenue Service, Indian Forest Service, Indian Audit and Accounts Service and Federation of Railway Officers Association (representing nine railway services).

The three-member Seventh Central Pay Commission, which had submitted its report on November 19, 2015, was divided over the issue of financial and career-related edge given to IAS officers as against those belonging to the other services.

"Two of the members of the panel have given clear findings. Both are neutral as they are not from any of the services. They have come to the conclusion that proper justice has to be given on the issue of pay and services parity," said Mishra, an Indian Revenue Service (Income Tax cadre) officer.

IAS officers presently get a two-year edge over other services for getting empanelled to come on deputation at the Centre.

Besides, they also get two additional increments at the rate of 3 per cent over their basic pay at three promotion stages i.e., promotion to the Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and to the Non-Functional Selection Grade (NFSG) after putting in about four, eight and 13 years of service, respectively.

The pay panel chief Justice (retd) A K Mathur and one of its members Rathin Roy had said that the three all-India services--Indian Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFoS)--and central services Group A officers who have completed 17 years of service should be eligible for empanelment under the Central Staffing Scheme and the "two year edge" presently enjoyed by the IAS should be withdrawn.

Whereas Vivek Rae, third member of the pay panel and a former IAS officer, has said that the financial edge for IAS and those of Indian Foreign Service is fully justified but has not agreed with the view that it should be extended to the IPS and the IFoS.

7th Pay Commission:- Entry-level basic pay Rs 18,000, while at the highest level it would be Rs 2.5 lakh.

New Delhi, Jun 29 (PTI) The new scales of pay provide for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. Secretary, it would go up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary will be Rs 56,100.

The Union Cabinet on Wednesday accepted the recommendation of Justice A K Mathur headed panel due to which there would be a recurring burden of Rs 72,800 crore every year, while the current fiscal's burden would be Rs 84,933 crore in view of the fact that they would be implemented from January 1, 2016.

While the Cabinet in its meeting, chaired by Prime Minister Narendra Modi, accepted the recommendations in respect of the hike in basic pay and pension, a decision on its suggestions relating to allowances has been referred to a Committee headed by Finance Secretary.

Announcing the government's decision, Finance Minister Arun Jaitley said government salaries have to be respectable in comparison to private sector, for which the Commission had engaged IIM-Ahmedabad for making a comparison.

"The recommendations of the Pay Commission with respect to pay and pension, have been accepted by and large by the government. And those recommendations will be implemented with effect from January 1, 2016, and the arrears would also be paid in this year," he said.

The recommendations cover 47 lakh central government employees and 53 lakh pensioners. This include 14 lakh serving employees and 18 lakh pensioners in defence forces.

Allaying fears of government's fiscal maths going wrong, Jaitley said the budget has provided for the anticipated expenditure and it did not come as a surprise.

Concerns have also been expressed over the extra money in the economy pushing up inflation. The minister admitted that there will be some inflationary pressure.

Maintaining that government cannot grudge a hike in salary for government staff after 10 years, he said, "when people get more money, it comes back in the system in the form of taxation. Savings will increase ... spending will go up".

Pay hike: Demand to push growth

New Delhi, Jun 29 (PTI) Implementation of the much- awaited pay hike for over 1 crore central government employees and pensioners will be a positive for the economy as it will push up consumption although its impact on inflation is likely to be moderate, economists say.

The Cabinet, headed by Prime Minister Narendra Modi, today cleared the recommendations of the 7th Pay Commission according to which the overall hike in salary and allowance of central government employees and pensioners comes to 23.5 per cent.

Experts said the higher pay out will boost consumption demand, especially for consumer durables and services. This domestic demand push would help India clock 7.9 per cent growth rate in the current fiscal, up from 7.6 per cent in 2015-16.

"Implementation of the 7th Pay Commission recommendations will have a positive impact on demand for consumer durables and services. Overall it is positive for growth with modest risk on inflation," ICRA Senior Economist Aditi Nayar said.

Besides, at a time of global headwinds arising out of Britain's exit from European Union (commonly termed Brexit), the increased pay out to over 1 crore government employees and pensioners would boost GDP growth to 7.9 per cent in 2016-17, up from 7.6 per cent a year ago.

"The implementation of 7th Pay Commission comes in at a time when globally we are facing downside risk from brexit.

The domestic demand push as well as good monsoon will drive growth. We estimate GDP growth at 7.9 per cent in 2016-17.

Besides arrears pay out will also mildly support consumption demand," Crisil Chief Economist D K Joshi said.

The 7th Pay Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP. The recommendation would be effective from January 1, 2016.

As regards its impact on inflation, Nayar said there could be some uptick in services inflation, while the impact on manufactured inflation would be contained given moderate capacity utilisation.

Increased payout, including arrears, might lead to higher spending, which would in turn boost consumption demand, thereby spreading the risk of inflationary pressures.

"The decline in global crude and commodity prices as well as good monsoon would act as an offsetting factor for any pressure on prices as result of 7th Pay Commission," Joshi said.

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.


7th Pay Commission:- Cabinet approves 23.6% overall pay hike

NEW DELHI: The Cabinet on Wednesday approved a 23.6 per cent increase in government employees' overall pay - basic pay plus allowances - as recommended by the 7th Pay Commission.



There were reports yesterday that the increase would be higher than what the Commission recommended, but that didn't happen.



The Pay Commission's recommendations are to be implemented retroactively, from January 1, 2016. The increase in the basic pay is 14.27 per cent and with the hike proposed in allowances, the rise in remunerations comes to 23.6 per cent. The pay hike will benefit 47 lakh central government employees and 52 lakh pensioners.



It's estimated that the implementation of the new pay scales will put an additional burden of Rs 1.02 lakh crore annually on the exchequer. That comes to nearly 0.7 per cent of the GDP.



While the 2016-17 budget fiscal didn't provide an explicit provision for implementation of the 7th Pay Commission, the government had then said that the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries. That interim allocation amounts to Rs 70,000 crore.



Union Finance Minister Arun Jaitley, had in his Budget for 2016-17 , provisioned Rs. 70,000 crore towards the Pay Commission's implementation. That number is around 60 per cent of the incremental expenditure on salaries.



The Centre had in January set up a panel headed by Cabinet Secretary PK Sinha to process the recommendations of the Seventh Pay Commission. That report was discussed up by the Cabinet on Wednesday, before the Commission's hike was approved.


Source:-The Times of India

Tuesday, June 28, 2016

Notification in respect of threshold limit of annual income under Section 14 (1) (g) and Lokpal Act and competent authority in respect of Public servants referred in Section 14 (1) (g) and (h)

To view please Click Here.

Consolidated Deputation Guidelines for All India Services.


To view please Click Here.

Ministers can give 7-year foreign posting tenure to babus: Government

 IAS and IPS officers can now stay on foreign posting for seven-years at a stretch from existing five years with due permission from the ministers concerned. 

The Department of Personnel and Training (DoPT) has relaxed rules to allow any ministry to further extend the tenure of an officer beyond seven years provided "recruitment rules for such deputation post" are amended accordingly. 

The move comes after various ministries approached the DoPT for relaxation of the five-year deputation tenure condition citing exigencies, officials said. 

It has now been decided with the approval of the competent authority that if the administrative ministries or departments and other borrowing organisations wish to retain an officer beyond five years, they may extend the tenure of deputation where absolutely necessary in the public interest, upto a period not exceeding seven years at a stretch, the new rules said. 

"This shall be done with the approval of the Minister of the borrowing ministry or department concerned and in respect of other organisations with the approval of the Minister of the borrowing ministry or department with which they are administratively concerned, keeping in view the exigencies and subject to fulfilment of all other requirements," it said. 

In a directive to all state governments and central government ministries, the DoPT has said that no case of extension shall be referred to it. 

"In cases where the necessity to have deputation tenures longer than seven years is felt, the concerned administrative ministries, departments or borrowing organisations may amend the relevant recruitment rules of such deputation post accordingly, after following the requisite procedure. 

"No extension of deputation beyond 7 years is to be allowed unless provided in the relevant recruitment rules of such deputation post. It is reiterated that no case for extension beyond five years shall referred to DoPT," the communique said. 

The new rules are applicable to the officers of all India services only--Indian Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFoS).

Source:-The Economic Times

7th Pay Commission: Cabinet may clear higher increase tomorrow


New Delhi, Jun 28 () The Cabinet tomorrow is likely to approve higher increase in basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners.
The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.
After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.
"Considering the tight fiscal position this year, the government may improve upon the Pay Commission recommendation for basic pay to 18 per cent or at best 20 per cent," a senior official said.
The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments.
A secretaries' panel, headed Cabinet Secretary P K Sinha, has already vetted the 7th Pay Commission recommendation and its report is being translated into a note for Cabinet.
"It in most likelihood will come up before the Cabinet tomorrow," the official said.
The government had in January set up the high-powered panel to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.
The Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP.
The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.
The secretaries' panel may have recommended raising minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.
While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.
Around Rs 70,000 crore has been provisioned for it, the official said. 


Source:-The Times of India

Enhanced Financial Powers to different Ministries

Government of India has decided to revise the financial limits for appraisal and approval of Non-Plan Schemes/Projects by competent authorities. As per the revised delegation, the Committee on Non-Plan Expenditure (CNE), which serves as an appraisal forum for all non-plan proposals of Central Government Ministries/Departments, will now appraise proposals involving expenditure of Rs.300 crore and above. The earlier limit for this was Rs.75 crore. Non-plan Schemes/projects of less than Rs.300 crore can now be appraised by Ministry / Standing Finance Committee of the Ministry concerned. 

The financial power of the Minister-in-charge of the administrative Ministry for approval of the Non-Plan schemes/projects has also been enhanced and the schemes/project costingless than Rs.500 crore can now be approved at his/her level. Earlier, the Minister-in-charge could approve projects costing less than Rs.150 crore. Finance Minister shall be competent financial authority for approving scheme/projects having financial implications of Rs.500 crore and above and upto Rs.1000 crore. 

Proposal having financial limits of Rs.1000 crore and above shall require approval of the Cabinet/Cabinet Committee on Economic Affairs. Concurrently, financial limits regarding appraisal and approval of increase in cost estimates have also been revised. Increase in cost upto 20% of the firmed up cost estimates can now be appraised by the Financial Adviser and approved by Secretary of the administrative Department, if the absolute cost escalation is upto Rs.75 crore, and by the Administrative Minister-in-charge if absolute cost escalation is above this. 

With this enhancement of financial powers, the financial limits for appraisal and approval of plan and non-plan schemes/projects of Central Government Ministries and Departments have been brought almost at par. This is expected to expedite appraisal and approval process in the Central Government Ministries/Departments. 

Source:-PIB

20% pay hike likely for govt servants

NEW DELHI: The Centre is likely to announce the implementation of the seventh pay commission recommendations soon after a panel headed by Cabinet secretary P K Sinha to examine the proposals submitted its report.


"Committee of secretaries has finalised its report on pay commission recommendations... We will soon draft a Cabinet note based on the report," finance secretary Ashok Lavasa said. Government sources said the proposal is likely to be taken up by the Cabinet later this week.
"We will soon announce it. The increase would be a little below 20%," a source said but did not elaborate. The Centre has said adequate provisions have been made in the 2016-17 Budget to absorb the impact recommendations.


In November last year, the seventh pay commission had recommended a 23.55% increase in pay and allowances, a 24% rise in pensions and one-rank-one-pension for central employees and paramilitary personnel - estimated to cost the government Rs 1.02 lakh crore in 2016-17.

Source:-The Times of India