Central Civil Services (Revised Pay) Rules, 2008 - the re-exercise of option under Rule 6 of the Central Services (Revised Pay) Rules, 2008 in case of employees covered under the OM dated 19.3.2012.

No. 10/2/2011-E-III(A)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 3rd January, 2013.

OFFICE MEMORANDUM

Subject: Central Civil Services (Revised Pay) Rules, 2008 - the re-exercise of option under Rule 6 of the Central Services (Revised Pay) Rules, 2008 in case of employees covered under the OM dated 19.3.2012.

   The undersigned is directed to invite a reference to Rules 5 & 6 of the CCS(RP) Rules, 2008, as per which a Central Government employee had an option to elect to come over to the revised pay structure either from 1.1.2006 or from the date of his next increment or from the date of promotion, upgradation of pay scales. Such an option was to be exercised within 3 months from the date of publication of CCS (RP) Rules, 2008. The rule also provides that the option once exercised shall be final.

   2. This Ministry issued instructions vide this Department’s OM No.10/2/2011-E-IIIA dated 19.3.2012, providing that those Central Government employees who were due to get their annual increment between February, 2006 to June, 2006 may be granted one increment on 1.1.2006 in the pre-revised pay scale as a onetime measure and, thereafter, they will get the next increment in the Revised Pay structure on 1.7.2006 as per Rule 10 of the CCS (RP) Rules,
2008.

Trade Union Demanded: Constitution of the seventh Pay Commission to be announced in the Budget.

   Pressing for a people-friendly Budget for 2013-14, trade unions today urged Finance Minister P Chidambaram and his team to announce the constitution of the seventh pay commission along with raising the income tax threshold to Rs 5 lakh in a year from the present Rs 2 lakh.

   The demand was raised by the unions at a pre-Budget consultations in the North Block, even as the government is struggling hard to rein in its fiscal deficit.

   After the meeting, Harbhajan Singh Siddhu of Hind Mazdoor Sabha said already seven years of the sixth pay commission have passed and any new commission will take two-three years to study. "The revision of wages and various service conditions of the government employees is already due. Constitution of the seventh Pay Commission be announced in the Budget," joint recommendations of trade unions, including CPI (M)-affiliated CITU, CPI-linked AITUC, INTUC of the Congress and Bharatiya Mazdoor Sangh to the Finance Minister said.

   Also, the unions have demanded the income tax exemption ceiling for the salaried persons should be raised to Rs 5 lakh per annum and fringe benefits like housing, medical and educational facilities should be exempted from the income tax net in totality.

Expected Dearness Allowance from January 2013 vs AICPIN-IW

   The rate of dearness allowance payable to central government employees might be enhanced from 72% to 80% with effect from January 2013

   All India Consumer Price Index Number for Industrial Workers is the only Index watched keenly by each and every Central Government Employees now. Because the rate of Dearness allowance granted twice in a year for cg employees is determined by this Index only. It is irony that no one is happy to see the hike in prices of essential commodity, but all the government servants are eagerly awaiting to know how much the rate of Dearness allowance will be increased at the end of every 12 months from the month of January and July. The interesting thing to be noted in dearness allowance vs AICPIN_IW is that the AICPIN-IW reflects the increase in the prices of basket of essential commodities, whereas, the rate of dearness allowance reflects the increase or decrease in AICPIN-IW. It is quite obvious that the AICPIN – IW is always in the trend of increasing mode due to the price rise, so as the rate of dearness allowance is also increasing twice in a year.