Centre to hike DA by 10% for second time, will make it 100%

Centre is likely to announce next month a hike in dearness allowance by 10 per cent to 100 per cent, benefiting about 50 lakh employees and 30 lakh pensioners.

It would be the second double digit DA hike in a row. The government had announced a hike of 10 per cent to 90 per cent in September last year, effective from July 1, 2013.

According to an official source, the preliminary assessment suggests that dearness allowance hike will not be less than 10 per cent and would be effective from January 1 this year.

He said the exact percentage hike in DA could be calculated only when the revised all India Consumer Price Index for Industrial Workers (CPI-IW) for December is released on February 28.

According to the provisional data released by government on January 31, the retail inflation for factory workers for the month of December stood at 9.13 per cent.

As per practice, the government uses CPI-IW data of the past 12 months to arrive at a quantum for the purpose of any DA hike. Thus, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter.

"It would be 10 per cent this time and would be announced in March," Confederation of Central Government Employees President K K N Kutty told PTI.

"Besides, raising DA to 100 per cent, the government should revise the pay and merge DA with basic pay", he said.

As per practice, the DA is merged with basic pay when it breaches the 50 per cent mark. DA merger helps employees as their other allowances are paid as a proportion of basic pay.

Kutty informed the central government employees would go on a two-day strike from February 12 and demand pay revision which would be possible through constituting the 7th Pay Commission. The government has announced setting up of the commission last year.

He said: "This DA hike won't help much as actual rise in the cost of living is about 300 per cent as on January 1, 2014. But they would pay us 100 per cent as DA."

Source:http://economictimes.indiatimes.com/news/economy/finance/centre-to-hike-da-by-10-for-second-time-will-make-it-100/articleshow/29757806.cms

Fixation of pay on promotion to a post carrying higher duties and responsibilities but carrying the same grade pay

CIRCULAR

Office of the Principal Controller of Accounts (Fys)

10-A, S.K. BOSE ROAD, KOLKATA-700001

No. Pay/Tech-1/01 (6th CPC) /2014/01

Date: 30-01-2014

To

All Group Controllers

Subject: Fixation of pay on promotion to a post carrying higher duties and responsibilities but carrying the same grade pay.

References hove been received from different Br. AOs and Factories regarding extension of benefit of 3% increment in terms of MoF, Deportment of Expenditure OM No. 10/02/2011-E.III/A dtd 07.01.2013 [click here to view] to those employees who were promoted f rom CM-II to CM-l/AF to JWM/MCM to CM on or ofter 1.1.2006.

In this connection, it may be stated that as per MoF, Deptt of Expenditure OM No. 10/02/2011-E.III/A dtd 07.01.2013, benefit of fixation of pay under FR 22(1) (a) (l) can be extended when both the feeder and promotional grades were placed in the identical revised pay scales based on the recommendation of the 6th CPC and where the existence of both the erstwhile posts are continued in 6 CPC and at the same time the promotional post also involves assumption of higher responsibilities as envisaged in the MoF OM No. 169/2/2000-lC dtd 24.11.2000.

In this context, it is also significant to mention that after 6th CPC, the posts of CM-II & I and AF & JWM have been merged and replaced by a single grade of CM or JWM with a grade pays of Rs. 4200/- and Rs. 4600/- respectively. Therefore, promotion between these grades after 6th CPC remains no more available and no movement within merged grade is practically possible and the basic conditions stipulated in G of I, MoF OM dtd 24-11-2000 including assumption of higher charge and existence of feeder and promotion grade are not fulfilled. Thus the benefit of 3% increment for movement from CM-II to CM-I and AF to JWM is not admissible in terms of proviso to para 2 of the aforesaid OM dtd 7.1.2013.

Whereas, in case of movement from MCM to CM, it may be stated that prior to 1.1.2006, the MCM grade was not a hierarchical post. The MCMs were part of HS cadre during 5th CPC. After the restructuring of Artisan cadre w.e.f 1.1.2006, the MCM grade has become a separate hierarchical post and cannot be treated within the strength of the HS. Hence, the condition stipulated under proviso to para 3 of MoF OM dtd 7-1-2013, that the promotional movement should be between two different posts of feeder and promotion post prior to 1 /1/2006 now carrying some grade pay, is not fulfilled in the case of the MCM also w.e.f 01-0.l -2006.

As such, promotionol benefit in terms of MOF OM dtd 7.1.2013 to the CM-l & JWM on their promotion from CM-II/MCM & AF respectively on or after .l.1.2006 may not be considered for admittance.

Br. AOs under your control may please be intimated accordingly.

Addl. C of A (Fys) has approved.

Sd/-

Asst. Controller of Accounts (Fys)

Source: http://www.pcafys.gov.in/files/Same%20grade.pdf

EPFO to raise retirement age of organised sector workers

EPFO’s apex decision making body the Central Board of Trustee (CBT) will consider a proposal to raise the retirement age of organised sector workers to 60 years for its pension at a meeting scheduled for Wednesday.

Besides, the CBT in this meeting will also deliberate on a proposal to withdraw two years bonus under the pension scheme provided to subscribers after rendering 20 years of pensionable service.

These proposals are included in the agenda for the CBT meeting scheduled on February 5 to be chaired by Labour Minister Oscar Fernandes.

At present, under the Employees’ Pension Scheme(EPS-95), the subscribers of Employees’ Provident Fund Organisation (EPFO) cease to be a member of the pension scheme and can apply for fixation of his/her pension. Thus, he cannot contribute to the scheme after the age of 58 years.

However, there is no age bar for contributing to the Employees’ Provident Fund Scheme (EFF) 1952 and Employees’ Deposit Linked Insurance (EDLI) Scheme 1976 run by the EPFO, an official said.

The Finance Ministry in its memorandum to Labour Ministry has proposed these amendments in the EPS-95 after giving its concurrence for providing a minimum entitlement of Rs 1,000 minimum monthly pension under the scheme.

The Finance Ministry is of the view that raising the retirement age for this purpose will help subscribers accumulate a bigger corpus while delaying the pay-out by two years.

The proposal, if approved, would immediately benefit 27 lakh pensioners. At present, there are about 44 lakh pensioners. Of this 27 lakh, including 5 lakh widows, get less than Rs 1,000 a month.

The Finance Ministry has already agreed to pay Rs 1,217 crore during 2014-15 for ensuring minimum pension of Rs 1,000 per month under the pension scheme.

During the meeting the, CBT is likely to approve the proposal for amending the the EPS-95, EPF and EDLI scheme to enhance the maximum wage ceiling to Rs 15,000 per month from Rs 6,500 per month.

At present, EPFO does not cover organised workers under its social sector schemes whose basic wages including basic pay and dearness allowance exceed Rs 6,500 at the time of joining of service.

Besides other things, the trustees will also consider the proposal for computing the pensionable salary. It is proposed to calculate pensionable salary on the basis of average of salary last 60 months instead of 12 months presently.

The pensionable salary is used for fixing pension of the EPFO subscribers after attaining the age of 58 years.

Source- Economic times