Casual labourers with temporary status — clarification regarding contribution of GPF and Pension under the Old Pension Scheme.

Casual labourers with temporary status — clarification regarding contribution of GPF and Pension under the Old Pension Scheme.

No.49014/2/2014-Estt(C) 
Government of India 
Ministry of Personnel, P.G. & Pensions 
Department of Personnel & Training

North Block, New Delhi, 
Dated the 28th July, 2016

OFFICE MEMORANDUM

Subject: Casual labourers with temporary status — clarification regarding contribution of GPF and Pension under the Old Pension Scheme.

The undersigned is directed to refer to this Department’s OM of even number dated 26th February, 2016 on the above subject and to say that some references have been received in this Department from various Ministries/Departments seeking a clarification with regard to the Para 7 of the referred OM.

2. The OM was issued in consultation with Department of Expenditure and the Department of Pension and PW. It was clarified vide that OM that this Department’s 0.M dated 26th April, 2004 had been quashed in a series of Orders/Judgements. The OM dated 26th February, 2016 restores the provisions of the Scheme as it existed prior to the OM dated 26 April, 2004. The benefit of GPF and Old Pension Scheme is applicable to all those casual labourers who are covered under the Scheme of the 10th September, 1993 even if they have been regularized on or after 01/01/2004.

3. As the benefit of Old Pension Scheme and GPF is admissible only to those Casual workers who are covered under the Scheme of 1993, all Ministries/ Department may strictly ensure that it does not lead to demand by regularly recruited fresh employees appointed on or after 1.1.2004  for similar benefit in place of NPS.

4. This issues with the concurrence of Department of Expenditure vide their I.D.No.1(15)/E-V/2015 dated 27.07.2016

(Mukesh Chaturvedi)
Director(E)
Tele: 23093176

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WISH YOU VERY HAPPY JANMASHTAMI 2016

7th Pay Commission Latest News: No hike in minimum pay of Rs 18,000, central government employees might go on strike

In a bad news for central government employees, the government has reportedly refused to hike the minimum pay of Rs 18,000 as recommended by the 7th Pay Commission and approved by the Union Cabinet.

New Delhi, Aug 23: In a bad news for central government employees, the government has reportedly refused to hike the minimum pay of Rs 18,000 as recommended by the 7th Pay Commission and approved by the Union Cabinet. The central government employees are not going to get more than minimum pay of Rs 18,000 as the public sector workers have also demanded minimum pay of Rs 18,000 which will bring extra burden on government. Finance Ministry sources working on the implementation of the 7th Pay Commission recommendations, has made clear that there is no scope to change in minimum pay Rs 18,000.

“The demand of central government employees through National Joint Council of Action (NJAC) for hiking minimum pay Rs 18,000 to Rs 26,000 may be considered by the National Anomaly Committee but they can do nothing,” a Finance Ministry source was quoted as saying by the Sen Times. The central government employees unions have threatened to carry out an indefinite strike if their demand of hike in minimum pay is not fulfilled. But the government is in no mood to change mind on central government employees’ demand. 

While the central government employees want hike is minimum pay of Rs 18,000, the government cannot accept their demand. It is because Public Sector Undertaking employees, who used to get less than the central government employees, are now demanding pay hike equivalent to central government employees. Since the government is not in position to bear this extra burden, it would not accept the demand of central government employees to increase minimum pay of Rs 18,000.

“Now, it is generally seen that Public Sector Undertaking employees get less pay than the central government employees and they will demand to hike pay equivalent to central government employees. So, the focus has now shifted to PSUs- whether they would implement a similar pay hike for their employees or not,” Finance Ministry officials were quoted as saying. “If they hike pay for their employees, the central government is likely to face difficulty in bearing this extra financial burden. Accordingly, central government employees demand for hiking minimum pay of Rs 18,000 will not be accepted,” they added.

The government in July issued the notification for the implementation of the 7th Pay Commission recommendations. The 7th Pay Commission notification confirmed that central government employees 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The Cabinet also approved the increase in minimum pay Rs 18,000 from existing Rs 7,000. But the central government employees want to increase minimum pay from Rs 18,000 to Rs 26,000. The employees’ unions have threatened to go on strike if their demands are not met.