Monday 22 August 2016
New allowances from October says Finmin: 7th Pay Commission
New Delhi: The new allowances for the central government employees is likely to be implemented from October 1, a senior Finance Ministry official told.
“Definitely, the new allowances on recommendations of 7th Pay Commission will be made effective soon. However, if its implementation is delayed it will be given effect from October 1,” the official told our reporter.
The finance ministry official said the Finance Secretary committee will submit its report by September end.
The official said alongside main allowances, the Finance Secretary committee will recommend various reforms in allowances hence it will take some time to implement those after scrutinising.
The Union Cabinet cleared the recommendations of 7th Pay Commission in respect of the hike in basic pay and pension on June 29 but decision on its suggestions relating to allowances has been referred to a Committee headed by Finance Secretary.
Accordingly, notification and resolution for the implementation of the 7th Pay Commission recommendations in respect of the hike in basic pay were issued on July 25.
The pay fixation and arrears related Office Memorandum No.1-5/2016-IC and Corrigendum dated July 29 and dated August 1 respectively were issued for paying arrears in one go in August salary.
According to Union Cabinet decision, a Committee headed by Finance Secretary Ashok Lavasa and Secretaries of Home Affairs, Defence, Health and Family Welfare among others as its members was constituted on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance.
The pay commission headed by Justice A K Mathur had recommended abolition of 51 allowances and subsuming 37 others after examining 196 allowances.
The scrapping of the allowances was opposed by the central government employees’ Unions and so it has been referred to a Committee of Secretaries.
Finance Minister Arun Jaitley said in Rajya Sabha in this month, “These measures are radical in nature, even the employees’ unions have given their suggestions in the matter and therefore the committee has been formed to look into allowances. Whatever the committee decides, it will go to the Cabinet.”
The first meeting of the Finance Secretary Committee on allowances already took place on August 4.
The once in a decade pay hike has seen burden on exchequer rise from Rs 17,000 crore in the 5th Pay Commission to Rs 40,000 crore in the 6th and Rs 1,02,100 crore in the 7th Pay Commission, Jaitley earlier said.
“The Union government needs funds. The Pay Commission has put a burden of Rs 1.03 lakh crore,” Jaitley said in the Parliament in this month.
The hike in the salary component as recommended by the 7th Pay Commission was accepted with retrospective effect from January 1, 2016. The arrears will be paid to the Central government employees and pensioners on August 31, Jaitley added.
It is noted that no arrears for allowances will be paid, as per usual practice, the allowances would be paid from the date of implementation.
The recommendations of the 7th Pay Commission cover 48 lakh Central government employees and 52 lakh pensioners.
TST
PLI Child Policy - Bal Jiwan Bima
Main Features-
To provide insurance cover to the two children of each existing PLI /RPLI policy holder provided that only one such policy will be allowed for an insured against one policy.
Eligibility :
This is an independent policy, however this policy can not be issued of its own to any child.
If the father/mother (insured) of the child has already taken policy or is proposing to take policy on their life either as whole life or endowment Assurance for a sum assured not less than the sum assured of children policy then children policy shall be issued to such insured.
Not more than one policy will be allowed for one child.
The policy can be taken by insured for his/her own child only.
Not more two children in a family shall be covered under this policy.
The same child should not be covered under more than one policy.
Any PLI or RPLI policy holder can apply for Child Policy for his two children's. Premium table is same for PLI or RPLI policy holder’s children policy.
Minimum & Maximum Age at Entry:-
Mini. age at entry of children is 5 years and the maxi. age at entry is 20 years on next birthday.
The Main insured shall not be aged 45 years and above at the time of taking/issue of children policy.
Sum Assured:-
The minimum Sum Assured is Rs 20,000 and the maximum Sum Assured is Rs 3 Lakh. Additional sum assured in multiple of Rs 10,000/-
Medical Examination :
No need of medical examination of children.
Loan :
No loan is admissible to children policy.
Surrender:- Surrendered and made paid up on usual conditions as applicable to main policy provided at least 5 years premiums have been paid.
The amount is admissible as per surrender Table/Factor which would be a fraction of premium paid.
Term :
The outstanding term of the main policy shall not be less than the premium paying period of children policy. Premium ceasing age at 18, 19, 20, 21, 22, 23,24 &25 yrs.
Claim :
Sum assured shall be payable on children policy on its Maturity or earlier on death of the child In the event of the death of the insured before the expiry of the children policy, no further premium shall be payable for the balance period of the child policy.
CHILDREN POLICY (Premium Table)
Children Add on with profit(Policy of Sum Assured of INR 1000/-)
For Sum Assured INR 20,000/- a rebate of INR 1/- Per month is admissible on premium.
For the purpose of ‘age at entry’ the age on next birth day will be taken for fixing premium.
For taking policy minimum age at entry will be 5 years & maximum 20 years
Rebate of 2% of the Premium is allowed on annual premium & 1% on half year premium
Source:- www.postallifeinsurance.gov.in
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