7th Pay Commission: Top 2 developments before Budget 2017 raise hopes for Central Government Employees

Arun Jaitley addressing a press conference in New Delhi on November 12, 2016.PIB India

The finance ministry seems better placed now after demonetisation to decide on raising allowances as recommended by the 7th Pay Commission.

With the dust at least partly settled over demonetisation and the subsequent disruption at the finance ministry, there seems to be renewed cheer among Central government employees of a decision on allowances as recommended by the 7th Central Pay Commission (CPC). Two developments in this regard are worth taking note of, even as Budget 2017 is about a month away.

As has been reportedly earlier, the second amnesty scheme for tax defaulters — Pradhan Mantri Garib Kalyan Yojana, 2016 — estimated to net the Modi government a substantial amount, the financial outgo of Rs 1,02,100 crore no longer seems to be a hurdle.

However, the note ban decision and the spate of activities that followed the decision about raising allowances to the back burner made employees restive.

Now they hope the government will quickly move on the issue that involves about 47 lakh Central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

While a website claiming to represent bureaucrats said that the finance ministry is likely to pay the enhanced allowances (possibly along with arrears) after Budget 2017 in February, another said that employees have sought a meeting with the ministry to resolve the issue at the earliest.

"Government is very pleased to pay the higher allowances to its employees after Budget. The acute cash crunch in banks and ATMs that prevailed for a month following the demonetization move of the government has eased from January 1, as the daily withdrawal limit from ATMs has been increased from Rs 2,500 to Rs 4,500. Hence, the Finance Ministry felt it would be wiser to announce of higher allowances after Budget," the Sen Times quoted a senior finance ministry official as saying.

Another significant development is a communication by the staff side National Council of the Joint Consultative Machinery (JCM) seeking an early redressal of the issue.

"Almost four months have passed (since September 1, 2016 meeting) without any outcome. All the Central Government Employees are quite agitated as well as are having mental agony because allowances of the VII CPC, have not been implemented. You are therefore, requested to fix-up a meeting of the Committee on Allowances, at an earliest to resolve the issues placed in the memorandum of the Staff Side(JCM) on various allowances," the letter read.

The CPC examined 196 allowances and gave its recommendations on abolishing or raising some of them while recommending others to be subsumed with other perks. It had proposed 138.71 percent hike in HRA and 49.79 percent for other allowances, while submitting its voluminous report in November 2015.

The Budget for the financial year 2017-18 is likely to be presented on February 1 by Finance Minister Arun Jaitley.

Calculation of financial implications by the 7th CPC.7th Central Pay Commission

Source : http://www.ibtimes.co.in/

Higher Allowances: Central Employees Have No Option But To Wait For Cash Flow To Ease

New Delhi: The central government wants to announce higher allowances under 7th Pay Commission award for its 48 lahk employees and 52 lakh pensioners, after taking the steps to ease the cash flow, that has been a major problem ever since demonetisation was announced for higher allowances announcement, official sources said.

Finance Minister Arun Jaitley may announce the higher allowances in his budget speech for 2017-18.

The hike in basic pay without allowances is not helpful for maintaining central government employees’ living standard, Finance Ministry sources told The Sen Times on Friday.

They had also said the allowances of government employees besides basic pay should increase which would give them some financial comfort, a step they had hoped might be taken after next budget, when the cash crunch would ease.

They added that the decision on higher allowances to push since getting of payments to made ease and without facing cash crunch. Hence, the Finance Ministry felt it would be wiser to announce of higher allowances when the cash flow to ease.

In the current financial year, the government has given higher basic pay with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance referred to the ‘Committee on Allowances’.

It compelled the the central government employees to get the allowances according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

“The committee on Allowances headed by the Finance Secretary Ashok Lavasa has finalized the report on the allowances in October but the government don’t want to announce it now, so the government gave extension the committee till February 22, 2017 to submit the report on higher allowances for getting normalized the cash crunch position, ” the Finance Ministry sources said.

They also added that Finance Minister Arun Jaitley may announce the higher allowances in his budget speech for 2017-18.

Promotion to the grade of Director General Postal services in the Department of Posts.

Sri T.Murthy, Member(O), Postal services Board is promoted as Director General, Dept of Posts in place of Sri A.K.Tiwari retiring on 31.12.2016.

To view please Click Here

Promotion and posting in the grade of Member, Postal Services Board, Indian Postal Service,Group'A' and transfer/posting as Member, Postal Services Board'

Ms. Usha Chandra Sekhar, CPMG Karnataka circle is promoted and posted as Member (O) Postal Services Board. 

Shri A. K. Dash, Member (Personel) Postal Services Board is transferred and posted as Member (PLI) Postal Services Board and Chairman PLI Investment Board.

Ms. Achala Bhatgnagar, Member (PLI) Postal Services Board and Chairman PLI Investment Board is transferred and posted as Member (P) Postal Services Board.

Click here to view the Directorate memo dated 29.12.2016 on the above subject matter.

FELICITATION OF SHRI ASHUTOSH TRIPATHI DIRECTOR GENERAL DEPARTMENT OF POSTS ON 30th DECEMBER-2016

Shri Ashutosh Tripathi: Director General Department of Posts is going to retire on 31^st December-2016.

            Felicitation was given by NFPE, Secretary General & President at Dak Bhawan today on 30^th December-2016 and extended best wishes on behalf of NFPE for his happy, healthy and peaceful retired life.

            Shri Ashutosh Tripathi is an officer of positive approach and during his period  as Member(P) and DG, Post, so many problems of staff were  settled and  he never gave opportunity to staff  side to go on strike or on any  serious  agitational programmes. Whenever there was any problem in Circles also he invited NFPE leadership and settled.

            We as NFPE wish all the best for his retired life:

One more CAT case filed at Allahabad Bench i/c/w PS Gr. B examination