7th Pay Commission pay hike creates millions of unhappy employees


It seems that nobody is satisfied with their 7th Pay Commission pay hike. At every level there appears to be an upward pressure on salaries and allowances, everyone deserve more pay than 7th Pay Commission pay hike. The 7th Pay Commission pay hike has got recent media attention, while, at the other end, there has been debate about the hiking of pay on the recommendations 7th Pay Commission is proper or not.

According to the commission’s recommendations, the minimum pay has been fixed at Rs.18,000 and the maximum at Rs.2.5 lakh for the cabinet secretary, the country’s senior-most civil servant. The commission had recommended a 14.28% increase in basic pay and the cabinet went with ditto to it.
The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

There has been widespread demand from central government employee unions to hike the minimum pay to Rs.26,000; but the government has not accepted the demand till date.
After the central government employees union had threatened to carry out an indefinite strike, the government had promised hiking minimum pay but they are not now in mood for hiking the minimum pay.

Inequalities in pay can be damaging. Excessive remuneration of top bureaucrats has been made to unnecessarily drive up average pay in middle-lower ranks, and dramatic differences between levels throughout government business can undermine motivation. In a wider social sense, perceived inequalities between groups leads to huge discontent and instability.
Aaccording to the notification  of cabinet approved 18 pay matrices, the rate of increase of cabinet Secretary’s basic pay is 178 per cent as he got Rs 90,000 (fixed) in the immediate past under 6th pay commission recommendations, while middle-lower ranks employees will now only get 157% increase of their basic pay merging dearness allowances.

The pay ratio between the Indian top most bureaucrat and the lowest grade employees in the 7th Pay Commission recommendations is 1:13.9, which was 1:12 in the 6th Pay Commission recommendations.

All pay commissions except 7th Pay Commission made up pay gap between lower paid employees and top bureaucrats from second Pay Commission 1:41 ratio to Sixth pay commission 1:12.
The first pay commission was recommended pay of the top bureaucrats 41 times higher than the government employees at the bottom. The top bureaucrats were given salary Rs 2,263 while the lowest earning employees got Rs 55.

Subsequent pay commissions reduced the ratio of pay between lowest earning employees and top bureaucrats from 1:41 in 1947 to about 1:12 in 2006, while 7th Pay Commission made it higher about to 1:14.

The cabinet has approved the hike of the basic pay but decided to defer the recommended 63% allowances hike in the government employees pay package and refer the matter to a committee headed by Finance Secretary Ashok Lavasa.

Allowances contribute a lot in the pay hike recommendation. If the allowance is not taken into consideration it will mean fewer amounts because the allowance which the commission proposed is very substantial.

The hike in allowances, which will give them more money in the pocket, the compensatory perks for all central government employees, which is likely to be paid from October 1 and no arrears for allowances (except Dearness Allowance) is paid, as per usual practice, the allowances is paid from the date of implementation. This also a cause of unhappiness in central government employees.
However, Finance Minister Arun Jaitley said in the Parliament in this month, “The Pay Commission has put a burden of Rs 1.03 lakh crore.”
source: The Sen times

Seven CPC Pension Arrears Tool officially released by CEPT on 23.08.16

PENSION ARREARS CALCULATOR FOR PRE-2006 PENSIONERS

Official Link:
ftp://cept.gov.in/Seven_CPC_Pension_Arrears-Tool/
  • Upgrade the Schedule database using pensionarear7paycommn.exl (which is in the Pension Arrears Calculator folder) .
  • Run the PensionArrearCalculator.exe on the machine where Account PBS module is installed. 
  • Income Tax wherever applicable may be recovered before arrears payment. 
  • This application is applicable for only those pensioners who retired before 01.01.2016. 
  • An Intimation regarding disbursement of revised pension may be sent by the pension disbursing authorities and Accounts officer which had issued the PPO so that the latter can update the Pension payment order register maintained by him.


    Working of Application: 

    • Select the PPO Number from the combo box.
    • If the desired PPO Number is not present in the combo box, then you need to add the Pensioner through Account PBS’ Pension Payment module.
    • If the Selected Pensioner is retired after 1.1.2016 then, you need to enter Revised Basic Pension and Commuted Pension Amount (fixed by the Competent Authority) in the Revised Pension textbox and Commuted Pension amount text box. If the selected Pensioner is retired before 1.1.2016, then automatically Revised Pension will be calculated and Old Basic Pension and Revised Basic Pension will be shown in the respective text boxes. 
    • Then, select the period for which you want to calculate the arrears.
    • After the selection of period, click on Calculate Arrear button and Save the arrears for generation of report.
    • If you calculated the arrears for the pensioner whose arrears are already calculated and went for saving the arrears, the message will be popped with the details of the arrears and you will be asked if you want to delete the earlier record for the purpose of new calculation of the arrears. If you click on yes, it will delete the old records. Then again select the period, calculate the arrear and save the records.

    Generation of Report:

    • For printing the arrear details, you must first, calculate the arrears for specific period and save the records
    • When you click on Report button, it will open a new window where you need to select the PPO number.
    • If you want to view the arrear details then select the Screen option and then click on OK button. It will open the arrear details. There you can see the details as well as print the details

    MODIFICATION:

    • In case, if you want to modify any records for particular month, then go to Modify tab, Select the PPO Number of Pensioner whose arrears are already calculated , click on the record which you want to modify.
    • At the bottom, you will find the existing entries in respective textboxes.
    • You are restricted to modify Old Basic Pension
    • After entering new data in the above fields, click on Calculate New Basic and then finally click on Update button.

    Reports:-

    Under reports we have three options:-
    Detail Arears Report:-
    • Select the PPo number
    • The name of pensioner is displayed
    • Click on OK .
    • The detail arear report of that particular pensioner is displayed

    Arears Voucher:-

    Select the PPo number
    • The name of pensioner is displayed
    • Click on OK .
    • The arear voucher of that particular pensioner is displayed

    Pension Schedule:-

    The pension schedule is generated under this option.

    Delete Arears:-
    By selecting the PPO number the arear generated for particular PPO number is deleted.

    Adjustment:-

    • Select the PPO number
    • Enter the short or excess amount if any.
    • The amount will be added or subtracted from the arear amount of that PPO number

    Click below link to download

    Download


    Solution for the SSA deposit error - "Error:This office account can only be inquired from other SOL's" in DOP Finacle


    • When we accept the deposit for SSA accounts sometimes we will get the error "Error :This office account can only be inquired from other SOL's" in DOP Finacle.
    • This error we in general will face when we are accepting the deposits for inter SOL accounts in DOP Finacle.
    • The error screen shot will be appeared as shown in the below figure


    • From the above screen shot it is clear that system is showing the above said error.

    Root cause of the above problem :- 

    • The above said error will occur when we accept the SSA deposits of inter SOL accounts and also if that inter sol account is having the defaults then the system will not accept to pay the pending installments in other SOLs other than the HOME SOL.
    • To know whether the account is having the default installments or not we can check in DOP Finacle by using the menu TIPM (Transaction Inquiry in Finacle Post Migration ).
    • For operating guidance to use the TIPM users can click here

    Solution for the above problem :- 

    • In order to accept the deposits of SSA account in any SOL first clear the pending installments in HOME SOL then the system will allow to deposit the amount anywhere in DOP Finacle application.

    Some important Tips for the users :- 

    • Always check the status of the SSA accounts in HACCDET before accepting the deposits of inter sol accounts.
    • If the status is Discontinued for the inter SOL account then advise the customer to deposit in the HOME sol to clear defaulted  installments.
    • Always be careful while entering the deposits for any scheme in DOP Finacle as the transactions will get posted immediately after creation of transaction by the counter PA.Deletion is not possible for posted transactions.
    • By mistake if amount is wrongly fed or fed in wrong account then we have to escalated to SSPO's take the permission and proceed for reversal procedure.
    • For operating procedure of reversal of SSA transactions users can click here

    7th Pay Commission Pension Arrears calculation Patch released by CEPT

    PENSION ARREARS CALCULATOR FOR PRE-2006 PENSIONERS




    Testing Version: Please take necessary backup before applying patches. Full version will be on official  FTP shortly.
    • Upgrade the Schedule database using pensionarear7paycommn.exl (which is in the Pension Arrear Calculator folder) .
    • Run the PensionArrearCalculator.exe on the machine where Account PBS module is installed.
    • Income Tax wherever applicable may be recovered before arrear payment.
    • This application is applicable for only those pensioners who retired before 01.01.2016.
    • An Intimation regarding disbursement of revised pension may be sent by the pension disbursing authorities and Accounts officer which had issued the PPO so that the latter can update the Pension payment order register maintained by him. 

    Working of Application: 

    • Select the PPO Number from the combo box.
    • If the desired PPO Number is not present in the combo box, then you need to add the Pensioner through Account PBS’ Pension Payment module.
    • If the Selected Pensioner is retired after 1.1.2016 then, you need to enter Revised Basic Pension and Commuted Pension Amount (fixed by the Competent Authority) in the Revised Pension textbox and Commuted Pension amount text box. If the selected Pensioner is retired before 1.1.2016, then automatically Revised Pension will be calculated and Old Basic Pension and Revised Basic Pension will be shown in the respective text boxes. 
    • Then, select the period for which you want to calculate the arrears.
    • After the selection of period, click on Calculate Arrear button and Save the arrears for generation of report.
    • If you calculated the arrears for the pensioner whose arrears are already calculated and went for saving the arrears, the message will be popped with the details of the arrears and you will be asked if you want to delete the earlier record for the purpose of new calculation of the arrears. If you click on yes, it will delete the old records. Then again select the period, calculate the arrear and save the records.

    Generation of Report:

    • For printing the arrear details, you must first, calculate the arrears for specific period and save the records
    • When you click on Report button, it will open a new window where you need to select the PPO number.
    • If you want to view the arrear details then select the Screen option and then click on OK button. It will open the arrear details. There you can see the details as well as print the details

    MODIFICATION:

    • In case, if you want to modify any records for particular month, then go to Modify tab, Select the PPO Number of Pensioner whose arrears are already calculated , click on the record which you want to modify.
    • At the bottom, you will find the existing entries in respective textboxes.
    • You are restricted to modify Old Basic Pension
    • After entering new data in the above fields, click on Calculate New Basic and then finally click on Update button.

    Reports:-

    Under reports we have three options:-
    Detail Arears Report:-
    • Select the PPo number
    • The name of pensioner is displayed
    • Click on OK .
    • The detail arear report of that particular pensioner is displayed

    Arears Voucher:-

    Select the PPo number
    • The name of pensioner is displayed
    • Click on OK .
    • The arear voucher of that particular pensioner is displayed

    Pension Schedule:-

    The pension schedule is generated under this option.

    Delete Arears:-

    By selecting the PPO number the arear generated for particular PPO number is deleted.

    Adjustment:-

    • Select the PPO number
    • Enter the short or excess amount if any.
    • The amount will be added or subtracted from the arear amount of that PPO number

    Click below link to download


    R S Sodhi selected as Independent Director for IPPB

    R S Sodhi

    Name : R S Sodhi
    MANAGING DIRECTOR AT GCMMF Ltd(AMUL)Ahmedabad Area, IndiaDairy
    Current 
    Independent Director, IPPB


    Previous 
    GCMMF (AMUL) GCMMF LTD, GCMMF ltd( AMUL)
    Education IRMA

    Experience
    MANAGING DIRECTOR GCMMF (AMUL)
    June 2010 – (6 years 3 months)
    CGM GCMMF LTD
    June 2004 – June 2010 (6 years 1 month)
    working with GCMMF for the last 32 yrs. joined as Sr Executive(sales),
    Worked in sales at for 12 yrs at various positions and locations.
    Since 1994 working at corporate HQ at Anand, at various positions as Group Product manager , AGM ( Mktg) , GM ( mktg) , Chief General Manager , was responsible for Marketing , Sales, commercial , Purchase ,IT etc.
    General Manager (Marketing)
    GCMMF ltd( AMUL)
    April 2000 – May 2004 (4 years 2 months)
    Responsible for marketing of dairy products

    Skills
    FMCG Business Strategy Key Account Management Food Agribusiness Dairy Dairy Products HACC PTeam Management Distributed Team Management Agriculture Quality Assurance Market Research Food Industry New Business Development Food Processing

    Education
    IRMA
    PGDRM
    1980 – 1982
    Govt school sector 3 , R K Puram
    BE(AG), PGDRM(IRMA)
    1975 – 1980

    Induction Training Period can be Taken for Counting Service for MACPs - Clarification

    Clarification has been given by the office of Postmaster General, Hyderabad Region in connection with the question whether pre appointment period can be taken into account for calculating service for MACPs.

    Following are the copy of original clarification given by the PMG Office and the letter given by SRM, RMS Z Division who sought this clarification.



    7th Pay Commission - Pension Calculator (with calculation of arrears from Jan-2016 to Jul-2016) and Option Calculator - Excel file download



    Download Link 1

    Download Link 2 (For Sify network)
    (Rename the file after download)


    "If Google-Drive download link is not opened in Sify network, please send email to email ID ---  dhamotharan@outlook.com so as to receive the file through email.

    Procedure to block(Hot listing) POSB ATM card in DOP Finacle

    • Generally in DOP for POSB customer we have started issuing the ATM cards.
    • ATM cards in DOP are of 2 types they are Instant cards and Personalized cards.
    • Insant cards will be supplied by CPC Bangalare  to the repective post office then the respective post office can be issued directly using the menu CCMM process.In order to know the step by step procedure to issue ATM cards in DOP Finacle users can CLICK HERE
    • Personalized cards will be requested at the Post office level using the menu CCMM in the counter PA and verify. Then the Personalized ATM card will be despatched to the address of the customer hence make sure address details are correct in CMRC with in 10 days from the request.
    • There are some norms in DOP to issue we have to follow the following requirements before requesting for an ATM card in DOP Finacle they are liested below.
    1. Minimum balance in the POSB account should be Rs 50/-.
    2. Name of the customer should be maximum of 21 charecters and there should not be any special charecters hence check thoroughly in CMRC menu.If it wrong modify the name of the customer in CMRC and HAALM menus at CIF and Account level respectively.
    3. CIF id should be updated with latest address in CMRC and verify the same.

    Scenario :- 


    •  Now if the customer approached the post office that he/she lost ATM card number and requesting for blocking the ATM card then we have to follow the below mentioned step by step procedure in DOP Finacle.

    Step by Step Procedure to request new PIN number  

    • Generally for all the ATM related modifications we use the menu CCMM in DOP Finacle
    • Invoke the menu CCMM in the counter PA login then the system will show the below screen as shown 

    • In the next screen enter the following details 
    1. select the function as "MODIFY"
    2. Enter the CIF id of the customer in the column CIF ID  _____________________
    3. Enter the ATM card number in the field Card Number ___________ as shown in the below figure



    •  Then click on GO then the system will show the customer details as mentioned in the below screen shot


    •  From the above screen shot it is clear system is showing all the details such as Account number, name of the customer,kit number,card number,card type and status of the card.
    • Then click on the field action  then the system will show the list of options available as shown in the below screen




    •  From the above list select the Action field as "Hot Listing " from the list of options shown in the above screen shot.






    • Then finally submit then the system will display the message customer records modified successfully. Hence counter PA work will be completed
    • Finally we have to verify in the supervisor login using the menu CCMM.

    Some of the important clarifications regarding POSB ATM cards in DOP :- 



    • POSB cards should not be issued to Illiterate customers as per the instuctions of Directorate in DOP Finacle.
    • Multiple cards should not be issued to multiple accounts of same customer i..e, same card should be linked to multiple accounts. This scenario will aride when a pensioner having pension account and general account then we have to issue only one ATM card for both the accounts using the Action as "LINK" in CCMM.
    • Multiple cards can be issued for Joint B customer for suppose if the account is having 2 customers with 2 different CIF ids then we can issue 2 cards using the menu CCMM for 2 CIF ids in DOP Finacle.
    • For joint A accounts ATM cannot be issued in DOP Finacle.
    • For minor accounts i..e, self operated accounts we can issue ATM cards.

    India Post Payments Bank Incorporated









    Press Information Bureau 
    Government of India
    Ministry of Communications & Information Technology 

    18-August-2016 16:18 IST
    India Post Payments Bank Incorporated
    The India Post Payments Bank Limited has received the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs yesterday under the Companies Act 2013. This would be the first PSU under the Department of Posts. This has happened in the wake of Prime Minister Shri Narendra Modi’s Independence Day address, raising the expectations of the people from the soon to be set up India Post Payments Bank. With this move the Department of Posts has cleared an important milestone on this journey. 

    With the incorporation, the Board of the India Post Payments Bank Limited is likely to be constituted soon. The incorporation of the IPPB Ltd is a significant step forward as this also paves the way for the bank to begin hiring of banking professionals to set up the bank and begin its operations in 2017. The Department of Posts is expected to complete the roll out of its branches all over the country by September 2017. This could be the fastest roll out for a bank anywhere in the world. 

    The aspiration for the India Post Payments Bank is to become the most accessible bank in the world riding on state of the art banking and payments technology. Coupled with the physical presence across 1.55 lakh post offices and the reach of “The Dakiya”, the India Post Payments Bank aims to become a powerful and effective vehicle of real financial inclusion in the country. It is poised to create a national payments architecture riding on a modern payments platform and ubiquitous information and communication technologies that can be accessed by all users and service providers like never before. The stakeholders of the India Post Payments Bank within the Government and outside are looking at this new entity as a catalyst to social and financial inclusion.

    India Post very soon provides internet banking facility for DOP customers




    India Post is on a technology upgradation mode to provide a host of financial services to the public, besides strengthening its hold on the logistics sector.

    As part of its strategy to get closer to people and make India Post one stop shop for logistics and financial services, including banking and insurance, it plans to provide internet banking facility shortly, reveals its Senior superintendent of Ongole postal division T.A.V. Sarma.

    “The online banking facility is presently available to its agents who can generate token number on their own online and transact on behalf of their customers,” he says in a conversation with The Hindu here.

    “The facility will be provided to all account holders in a month or two after setting right teething troubles so that the account holders can log into indiapost.gov.in and transact without any hassles,” he adds.

    In Ongole division, all the 98 post offices have migrated to the Core Banking Solutions (CBS) to offer a host of insurance products and banking services real-time, he explains.

    All savings bank account holders will be provided with Automated Teller Machine (ATM) cards to avoid the unpleasant practice of standing in long queues to transact, he says.

    All post offices in the division are provided with sufficient number of ATM cards to cover pensioners and other savings bank account holders and make ATMs the preferred mode of transaction by customers from any India post ATMs from anywhere in the country.

    Negotiations are on at the highest level for setting up Post Bank of India and also enable its account holders to withdraw money from any public or private bank ATMs soon with ATM cards issued by the department, he says.

    The department has so far set up five ATMs in the division. “More ATMs will be rolled out in the coming months,” he says.

    Customers can now track the postal articles from the time of booking to delivery by just giving the details of the mobile numbers of themselves and that of the receivers.

    Purchasing stamps online

    They can also purchase stamps online from the e-post office by registering on the portal epostoffice.gov.in and also download android app to transact with their mobile phones.

    Procedure to isse Duplicate ATM card in DOP Finacle

    • Generally in DOP for POSB customer we have started issuing the ATM cards.
    • ATM cards in DOP are of 2 types they are Instant cards and Personalized cards.
    • Insant cards will be supplied by CPC Bangalare  to the repective post office then the respective post office can be issued directly using the menu CCMM process.In order to know the step by step procedure to issue ATM cards in DOP Finacle users can CLICK HERE
    • Personalized cards will be requested at the Post office level using the menu CCMM in the counter PA and verify. Then the Personalized ATM card will be despatched to the address of the customer hence make sure address details are correct in CMRC with in 10 days from the request.
    • There are some norms in DOP to issue we have to follow the following requirements before requesting for an ATM card in DOP Finacle they are liested below.
    1. Minimum balance in the POSB account should be Rs 50/-.
    2. Name of the customer should be maximum of 21 charecters and there should not be any special charecters hence check thoroughly in CMRC menu.If it wrong modify the name of the customer in CMRC and HAALM menus at CIF and Account level respectively.
    3. CIF id should be updated with latest address in CMRC and verify the same.

    Scenario :- 


    •  Now if the customer approached the post offic that he/she lost ATM card number and requesting for a new ATM card (Duplicate card) then we have to follow the below mentioned step by step procedure in DOP Finacle.

    Step by Step Procedure to request new PIN number  

    • Generally for all the ATM related modifications we use the menu CCMM in DOP Finacle
    • Invoke the menu CCMM in the counter PA login then the system will show the below screen as shown 

    • In the next screen enter the following details 
    1. select the function as "MODIFY"
    2. Enter the CIF id of the customer in the column CIF ID  _____________________
    3. Enter the ATM card number in the field Card Number ___________ as shown in the below figure



    •  Then click on GO then the system will show the customer details as mentioned in the below screen shot


    •  From the above screen shot it is clear system is showing all the details such as Account number, name of the customer,kit number,card number,card type and status of the card.
    • Then click on the field action  then the system will show the list of options available as shown in the below screen




    •  From the above list select the Action field as "Hot Listing and Replacing " from the list of options shown in the above screen shot.


    • Then finally submit then the system will display the message customer records modified successfully. Hence counter PA work will be completed
    • Finally we have to verify in the supervisor login using the menu CCMM.
    • Within 10 days from the request CPC Bangalore will despatch the New ATM card  to customer addess and PIN number to the respective post office. Finally hand over the new PIN number by taking the signature in the register.

    Some of the important clarifications regarding POSB ATM cards in DOP :- 



    • POSB cards should not be issued to Illiterate customers as per the instuctions of Directorate in DOP Finacle.
    • Multiple cards should not be issued to multiple accounts of same customer i..e, same card should be linked to multiple accounts. This scenario will aride when a pensioner having pension account and general account then we have to issue only one ATM card for both the accounts using the Action as "LINK" in CCMM.
    • Multiple cards can be issued for Joint B customer for suppose if the account is having 2 customers with 2 different CIF ids then we can issue 2 cards using the menu CCMM for 2 CIF ids in DOP Finacle.
    • For joint A accounts ATM cannot be issued in DOP Finacle.
    • For minor accounts i..e, self operated accounts we can issue ATM cards.

    Setting up of Anomaly Committee to settle the Anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

    Setting up of Anomaly Committee to settle the Anomalies arising out of the implementation of the 7th  Pay Commission’s recommendations.


    No.11/2/2016-JCA
    Government of India
    Ministry of Personnel, Public Grievances and pensions
    Department of Personnel & Training
    JCA Section
    North Block, New Delhi
    Dated the 16th August, 2016
    OFFICE MEMORANDUM

    Subject: Setting up of Anomaly Committee to settle the Anomalies arising out of the implementation of the Seventh Pay Commission’s recommendations.

    The undersigned is directed to say that it has been decided that Anomaly Committees should be set up, consisting of representatives of the Officials Side and the Staff Side to settle the anomalies arising out of the implementation of the 7th Pay Commission’s recommendations, subject to the following conditions, namely:
    (1) Definition of Anomaly
    Anomaly will include the following cases:
    (a) where the Official Side and the Staff Side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the Commission assigning any reason; and
    (b) where the maximum of the Level in the Pay Matrix corresponding to the applicable Grade Pay in the Pay Band under the pre-revised structure, as notified vide CCS (RP) Rules 2016, is less than the amount an employee is entitled to be fixed at, as per the formula for fixation of pay contained in the said Rules”.
    (2) Composition: 
    There will be two levels of Anomaly Committees, National and Departmental, consisting of representatives of the Official Side and the Staff Side of the National Council and the Departmental Council respectively.
    (3) The Departmental Anomaly Committee may be chaired by the Additional Secretary (Admn.) or the Joint Secretary (Admn.), if there is no post of Additional Secretary (Admn.). Financial Adviser of the Ministry / Department shall be one of the Member of the Departmental Anomaly Committee.
    (4) The National Anomaly Committee will deal with anomalies common to two or more Departments and in respect of common categories of employees. The Departmental Anomaly Committee will deal with anomalies pertaining exclusively to the Department concerned and having no repercussions on the employees of another Ministry / Department in the opinion of the Financial Adviser.
    (5) The Anomaly Committee shall receive anomalies through Secretary, Staff Side of respective Council upto six months from the date of its constitution and it will finally dispose of all the anomalies within a period of one year from the date of its constitution. Any recommendations of the Anomaly Committee to resolve the anomaly shall be subject to the approval of the Government.
    (6) Cases where there is a dispute about the definition of “anomaly” and those where there is a disagreement between the Staff Side and the Official Side on the anomaly will be referred to and “Arbitrator” to be appointed out of a panel of names proposed by the two sides. However, this arbitration will not be a part of the JCM Scheme.
    (7) The Arbitrator so appointed shall consider the disputed cases arising in the Anomaly Committees at the National as well as Department level.
    (8) Orders regarding appointment of the Arbitrator and constitution of Anomaly Committee at National Level will be issued separately. All Ministries / Departments are accordingly requested to take urgent action to set up the Anomaly Committees for settlement of anomalies arising out of implementation of the 7th Pay Commission’s recommendations, as stipulated above.
    (G. Srinivasan)
    Deputy Secretary 

    Non Payment of HRA as per the Rates Recommended by 7th Pay Commission – A Great Disappointment

    Non Payment of HRA as per the Rates Recommended by 7th Pay Commission – A Great Disappointment

    The Seventh Pay Commission submitted its report to the Central Government in November 2015. Among the most eagerly-anticipated topics was the recommendations regarding the House Rent Allowances. Typically, an employee spends more than a third of his/her salary on house rent. Keeping in mind this huge and unavoidable expense for Central Government employees living in major cities, the Sixth Pay Commission had recommended that 10, 20 and 30 percent of the Basic Pay be given as HRA.

    The various Central Government employee unions and Federations requested the Seventh Pay Commission to recommend to the government that the percentage of HRA be increased. To everybody’s surprise, the Seventh Pay Commission recommended that the government reduce the HRA to 8, 16, and 24 percent. Although many reasons were given for this recommendation, the employees were hugely disappointed. Since the recommendations will be applied for the next ten years, there was a strong demand for the previous HRA levels to continue. As a consequence, all the Central Govt Employee’s Federations began to put pressure on the Central Government to increase the percentage of HRA. This also became one of their most important demands.

    The Central Government, meanwhile, bought time for itself by announcing the formation of an Empowered Committee to look into the recommendations of the Seventh Pay Commission. There is no news about the Empowered Committee report, as of this date.

    On June 29, the central cabinet gave its approval to the recommendations of the Seventh Pay Commission. It was announced that a committee would be constituted under the leadership of the Finance Secretary, to look into the issue of various allowances, including the HRA. The committee would be advised to present its report in four months. Until then, HRA will be issued as per the pre-revised pay and rates.

    During the negotiations that were held to prevent a nationwide indefinite strike(July 11), this issue was discussed in detail. The government agreed to constitute a high-level committee. It was said that the government had “indirectly accepted” the recommendations made by the high-level committee regarding the HRA.

    On July 25, the government confirmed the implementation of the Seventh Pay Commission by publishing it in the official Notification & Gazette. There was no change regarding the HRA.

    The employees meanwhile recollect, with surprise, the four months’ time that was given to the special committee for discussing the HRA issue. The announcement that the Sixth Pay Commission recommendations will be followed until the committee announces its decision, is considered to be the biggest disappointment of them all.

    HRA plays the most important role in salary increment. The employees feel that as per the percentages recommended by the Seventh Pay Commission, the HRA should be given from this month’s salary onwards. Some feel that the arrears in the HRA could have been paid later.

    Why is the government hesitating to implement it?