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Wednesday, 6 July 2016

How will Seventh Pay Commission impact finances of state governments?

According to a study commissioned by the 7th Pay Commission, during the implementation of 6th Pay Commission, eight states opted for switching expenditure to meet additional expenditure demand. Photo: HT
According to a study commissioned by the 7th Pay Commission, during the implementation of 6th Pay Commission, eight states opted for switching expenditure to meet additional expenditure demand. Photo: HT
New Delhi: With the central government announcing the implementation of the 7th Pay Commission report which will have an initial impact of Rs.1.1 trillion on government coffers in 2015-16, it is only natural that states will follow suit soon.
After the previous 6th Pay Commission submitted its report in March 2008, except for Andhra Pradesh, Kerala, Punjab and Karnataka, which constituted their own pay commissions, most other states accepted the central pay commission recommendations with some variations.
By 2008, most states had implemented the Fiscal Responsibility and Budgetary Management Act, putting caps on their deficits and compelling them to be more fiscally prudent. However, with the global financial crisis in 2008 after the collapse of Lehman Brothers, revenue collections dipped, affecting state governments for the first few years. Some state governments opted for reduction in other revenue spending and moderation in capital expenditure growth. Deficit indicators for most states deteriorated immediately after adoption of the recommendations. However, fiscal sustainability did not get out of control as within two years, states were able to absorb the initial impact.
According to a study commissioned by the 7th Pay Commission and conducted by the Indian Institute of Management, Calcutta, during the implementation of 6th Pay Commission, eight states opted for switching expenditure to meet additional expenditure demand. Though state-level deficit indicators significantly worsened initially for 22 states, 12 states showed resilience and got out of the fiscal stress within two years of completion of payouts.
However, the study warned that if socially important revenue expenditures are squeezed and capital assets creation foregone, the impact on the nation’s economy could be as adverse as in the earlier case, “perhaps even more so as far as long-term consequences are concerned.”
The 7th Pay Commission in its report urged states to calibrate the speed and the extent of their own awards depending on their fiscal condition. “In the case of states that have been in chronic revenue deficit, there is no doubt that even the awards with the level of fiscal prudence of Seventh CPC will cause a fiscal strain to these states. These states must cut their coat according to their cloth,” it said.
The Reserve Bank of India (RBI) reports that the consolidated revenue deficit of all states (budget estimates) is expected to be -0.4% for 2015-16.
However, states will be in a better position as the Fourteenth Finance Commission has increased the ratio of states’ untied share in the divisible pool of receipts to 42% from 32% earlier. States as a whole are expected to maintain this healthy trend, particularly since the macroeconomic outlook is now expected to be better than in the recent past.
Yes Bank, in an analysis on the impact of 7th Pay Commission on state governments released on 30 June, concluded that Gujarat and Jharkhand are most favourably placed in terms of both having a relatively smaller share of public sector employees and lower liability on pension, wages and salaries, while Kerala and Punjab are most vulnerable due to higher pension and wage liability and relatively higher share of state government employees in the organized sector.
The study said although West Bengal and Maharashtra have a relatively smaller size of public sector employees, their liability in terms of wages, salaries and pensions is high. Chhattisgarh and Haryana, despite being relatively small states, have a relatively high share of public sector employees, making them more vulnerable than large states like Uttar Pradesh and Madhya Pradesh. Haryana has already budgeted for pay scale revision in FY17 and is also expected to post a revenue deficit in 2016-17. The study found that Bihar, Odisha and Rajasthan are states that are relatively more vulnerable to pay scale revisions as they have a higher share of government employees and relatively higher liability in terms of pension, wages and salaries.
Source : http://www.livemint.com/Politics/gAR6dGdlFf8lVp9sdW0seN/How-will-7th-Pay-Commission-impact-finances-of-state-governm.html

Indefinite Strike from July 11 - NJCA not yet decided

Indian Military Veterans
Indefinite Strike from July 11 - NJCA not yet decided

DATED – 06.07.2016

The National Joint Council of Action (NJCA) met at the Staff Side office, JCM, New Delhi today at 11:30 AM as scheduled. During the discussions, the Convener received an invitation from the Honourable Home Minister, Shri Rajnath Singh. The following members of the NJCA met the Home Minister in a delegation.

1. Dr. M. Raghavaiah (NFIR), 2. Shiv Gopal Misra (AIRF), 3. Rakhal Dasgupta (AIRF), 4. Guman Singh (NFIR), 5. K. K. N. Kutty (Confederation), 6. C. Srikumar (AIDEF), 7. M. Krishnan (Confederation), 8. Ashok Singh (INDWF), 9. R. Srinivasan (INDWF), 10. M. S. Raja (Confederation), 11. J. R. Bhosale (AIRF), 12. Bhatnagar (NFIR), 13. R. N. Parashar (NFPE), 14. Giriraj Singh (NFPE), 15. Satish Chander (FNPO), 16. Shiv Kumar (FNPO), 17. N. Kannaiah (AIRF).

The issues in the Charter of demands were discussed with special reference to the 7th CPC related demands. The delegation brought to the notice of the Honourable Home Minister that the NJCA has not received a communication from the Government over the assurances held out on 30th June, 2016, when the NJCA delegation met the Honourable Home Minister, Finance Minister and the Railway Ministers. On 30th June 2016, the Government had assured to refer the revision of Minimum wage and fitment formula to a Committee. The Finance Minister has also clarified that the Government has taken the decision to implement the recommendation of the 7th CPC to bring about parity between the past and present pensioners. They added that such a communication in confirmation of the assurances will enable them to take a decision over the strike action which is to commence from 11th July, 2016.

The Honourable Home Minister assured the delegation that the Government will honour the assurances held out to the NJCA leaders on 30th June, 2016 and accordingly the Honourable Finance Minister, Shri Arun Jaitly will issue a Press Statement today, with copy to NJCA.

After receipt of the copy of the Press Communique issued by the Honourable Finance Minister, the NJCA will take a final decision.

M. KRISHNAN
Secretary General
Confederation

Source: Confederation

Eid Mubarak

Indian Military Veterans

Image result for Eid Mubarak

Dear Friends,

  On this auspicious day, I greet my friends Eid Mubarak!! Considering the recent happenings all over the world, I am positive that my Muslim friends will definitely introspect and redefine their faith, in projecting it as the Religion of Peace.

Pay Matrix Table for Defence Personnel

Indian Military Veterans
Pay Matrix Table for Defence Personnel : 7th Pay Commission has recommended the new pay structure for Defence Personnel with minimum of Rs.21700 and maximum of 250000. We compiled the table with Pay Band wise and given below for your information…Just scroll and click the images

7th Pay Commission Pay Calculator for Defence Personnel

Indian Military Veterans
th Pay Commission Pay Calculator for Defence Personnel
7th Pay Commission Defence Pay Scale Calculator
Basic Pay as on Jan 2016
(Including Grade Pay)
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and Grade Pay
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Details given below*
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Group X Pay*
*Note: 7th CPC refers 19 Cities as Higher TPTA Cities:Delhi, Hyderabad, Bengaluru, Greater Mumbai, Chennai, Kolkata, Ahmedabad, Surat, Nagpur, Pune, Jaipur, Lucknow, Kanpur, Patna, Kochi, Kozhikode, Indore, Coimbatore and Ghaziabad
*GroupX Pay: 7th CPC recommended for JCO/ORs in Group X at 6200 pm for having Diploma recognised by AICTE and 3600 for not having Technical Qualification recognised by AICTE
[Disclaimer: This calculator gives only approximate value on the basis of the recommendations of 7th Central Pay Commission and also shown the estimate figures only basis on your inputs. Reader are req

Unions to decide today regarding indefinite strike


Leaders of National Joint Council of Action, the umbrella organization of central Govt. associations in different Dept.s/ Ministries will sit together to decide future course of action. There is already a call for indefinite strike from 11th July exists but during a meeting on 30th June, central ministers assured leaders about consideration of minimum pay hike and betterment in fitment factor. They promised to refer these matters to any of the committees which will look after certain issues of pay report. But till date no written communication or press release detailing these have been issued. The leaders need to solve these issues before declaring any deferment of strike.
Since the Leaders of NJCA are meeting today (6th July 2016) at 11:00 hrs., in JCM Office at New Delhi, the expectations are at high to know the recent development in implementation of 7th CPC recommendations and of course about Indefinite Strike also.

7th Pay Commission and the military - By Nitin Gokhale

Indian Military Veterans

7th Pay Commission and the military - By Nitin Gokhale

Since 29 June, the day when the Central government announced the acceptance of the 7th Pay Commission report, there have been quite a few voices of concern, anguish and plain anger have been emanating from military veterans over the issue of continuing degradation of the military’s status in the overall government hierarchy. Most of the anger is justified but some of the contentions are not, simply because they are not based on facts as they obtain at the moment.

Take the case of allowances and the case of non-functional financial upgrade have NOT been accepted by the government and remain on table for discussions and their eventual resolution. Unfortunately, in absence of the actual notification, the old issue about disparity in allowances to be given to a civil service officer posted in the north-east vis-a-vis a soldier posted in Siachen continues to be cited as fact when in reality, the government has refused to accept this anomalous recommendation. However, many write-ups, discussions, WhatsApp and Facebook messages continue to harp on this single point, creating confusion in the minds of majority of serving and retired personnel.

The need right now is to have patience and not hasty conclusions, past experience notwithstanding. The 7thPay Commission had made some completely absurd recommendations which, the government, after proper analysis aided by the three service headquarters, has NOT accepted. Contrary to several emails and WhatApp messages going around, rations to the military personnel have NOT been discontinued. Neither has the disability pension been reduced. But many of seem to ignore this. 
Yes, several anomalies carried over from the 6th Pay Commission continue to remain unresolved; yes the Central Armed Police Forces (CAPFs) are becoming increasingly vocal demanding parity or even higher status from that of the military; yes, the bureaucrats will try their best to degrade the military. But, like their predecessors, the current military leadership is doing its best to fight the onslaught. Some battles will be won; some others will result in stalemate and a few will be lost. The trick is to lend full support to those who are leading the battle and not ridicule them.
But I am sorry to say many seniors are—wittingly or unwittingly—running down the current leadership across the three services without full knowledge of what they are trying. The best course forthe moment, in my view, is to hold the horses and wait for the notification to be available in writing before rushing to pronounce judgement.
I write this even as I get an earful every week from my 84-year old father—who retired as Subedar Major in 1982, for those who don’t know—for not being able to find out why his bank account does not show any enhanced pension more than six months after the announcement of the One Rank One Pension award! Despite my so-called reach and contacts, I am still waiting for a satisfactory answer from the department of Ex-servicemen (non) Welfare. That personal frustration notwithstanding, I feel the need is to wait a little more before deciding on the next course of action and not forward half-baked posts and ill-informed opinions without application of mind.
If considered judgement is not applied, the military community will once again look foolish as it did in forwarding—on a large scale– a fictitious interview with former IAS officer Vivek Rae (who was member of the 7th CPC), which ostensibly displayed his total contempt for the uniform. That is just one instance. As someone who has had the privilege of reporting on the government and especially on the MoD for over three decades, all that I can say is: don’t play into the hands of those inimical to the services. By making rash comments, sweeping generalisations and fictional charges, the military community is only aiding those who wish to see a servile, subservient and demoralised military.
This post is sure to anger many seniors and the perpetually ‘on the boil’ veterans but please view this issue in a broader perspective and introspect whether hasty conclusions are in the best interest of the organisation all of you had the privilege of serving.
Disclaimer: The opinions, beliefs and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs and views of ABP News Network Pvt Ltd.

(The writer is one of South Asia’s well-known Security & Strategic Affairs analysts)

Updated 7th CPC Calculator for Defence Personnel as on 1st July ‘2016 (Including one increment)

Indian Military Veterans

Updated 7th CPC Calculator for Defence Personnel as on 1st July ‘2016 (Including one increment)

Select Present Pay Band / GP
Enter your present pay in pay band (exclude Grade Pay)
Select present MSP (6cpc)
Select X – Pay
Are you Eligible for NPA?
Select present HRA% (6CPC)
Select City for TA


NJCA says No to implementation of 7th CPC, until Govt increase the Minimum Pay and Fitment Factor.

Indian Military Veterans

NJCA says No to implementation of 7th CPC, until Govt increase the Minimum Pay and Fitment Factor.

The NJCA will be meeting today to decide the future course of action on Indefinite Strike and Government decision on implementation of 7th Pay commission recommendation. The Leaders of NJCA are so discontented with Government’s unilateral decision on implementing 7th Pay Commission.
The Leaders told, “Just Rs.2250 hike recommended in 7th CPC minimum pay has been hyped by Govt and Media as multi folded increase is given to CG Employees in 7th Pay Commission. They obviously tried to create a false public opinion that the CG employees are overpaid. It is totally irrelevant and wrong news being publicized excessively by the Government and Media”.
They further told that arriving Minimum Pay need to be justified by Dr. Akhroyd Formula and 15th ILC norms. But this Rs.18000/- minimum pay recommended by 7th pay Commission is not at par with the Minimum wage to be paid to meet the living standard prescribed by WHO or by Dr. Akhroyd Formula and 15th ILC Principles.
It is said that when NJCA Leaders met the Group of Ministers on 30th June 2016, they actually conveyed their views to GOM to postpone the implementation of 7th Pay Commission until negotiated settlement is arrived at the issue of Minimum Wage and Fitment factor. Because they feel that if recommendations of 7th pay commission are implemented without any increase, it would be difficult to force or convince the Government to revise the Minimum Pay after implementation
It seems that the Central Government Employees and their Federations won’t compromise on this Minimum Wage and Fitment factor issue.
Since the Leaders of NJCA are meeting today (6th July 2016) at 11:00 hrs., in JCM Office at New Delhi, the expectations are at high to know the recent development in implementation of 7th CPC recommendations and of course about Indefinite Strike also.

FM suggested out on the issue of Minimum Pay and Multiplication Factor may be referred to a committee

Indian Military Veterans
7TH CPC PAY CALCULATOR 
FM suggested out on the issue of Minimum Pay and Multiplication Factor may be referred to a committee
“On 30.06.2016, the NJCA was informed to meet Finance Minister and some ministers at Home Minister residence. Accordingly, few NJCA members met the ministers at 09.30 p.m. The views of NJCA and the disappointment of Central Government employees placed before them. Then Finance minister suggested out on the issue of minimum pay and multiplication factor may be referred to a committee. But NJCA leaders said that if any official meeting is convened or official communication issued, it may be placed before the NJCA and consider to meet and discuss otherwise, we do not agree and continue with our Strike proposal.”

CONTINUATION OF STRIKE ON 11.07.2016

INTUC 
INDIAN NATIONAL DEFENCE WORKERS FEDERATION
R. Srinivasan 
General Secretary
INDWF/Circular/025/2016
Date 05.07.2016
To
All Affiliated Unions of INDWF,
Office Bearers & Working Committee members of INDWF
Dear Colleague,
INDWF vide its circular No.24 Dt 28.06.2016 communicated to all our affiliated unions to continue the momentum generated, to hold demonstrations, rallies etc in all work places every day from 4th July, 2016 to 10th July, 2016 to intensify the Indefinite Strike w.e.f.11.07.2016 from 0600 Hrs as per the decision of NJCA.
After the Cabinet meeting of Government of India held on 29.06.2016 approved the 7th CPC recommendations without any change in the Empowered committee’s recommendations which has disappointed the Central government employees as a whole. The Cabinet further considered appointing committees for the following issues to a committee to decide within a period of 4 months.
1.)The commission examined a total of 196 existing Allowances and by way of rationalisation, recommended abolition of 51 Allowances and subsuming of 37 allowances. Given the significant changes in the existing provisions for allowances which may have wide ranging implications the cabinet decided to constitute a committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on allowances. The committee will submit its report within 4 months in a time bound manner. Till a final decision, all existing allowances will continue to be paid at the existing rates.
2) Cabinet decided to constitute two separate committees.
a) To suggest measures for streamlining the implementation of National Pension System (NPS).
b) To look into anomalies like to arise out of implementation of the commission’s report.
Main features of the adverse recommendations of VII CPC and cabinet approval.
Minimum pay increased from Rs.7000/- to Rs.18000/- only against Rs.26000/- increase of total pay on revision is 7000 + 125% of DA Rs.8750 =Rs.15750/-. Total minimum pay Rs.18000 —Rs.15750 = increase only Rs.2750/-. Out of Rs.2750/- 10% Pay towards NPS = Rs.1800 – balance Rs.950/- Total increase amounts only Rs.950/- for next 10 years. No increase in allowances, All interest free advances abolished. This has caused very serious discontentment among Central Government employees.
* CCL — 1st year 100% salary 2nd year only 80% salary
*Meagre increase in minimum pay.
*Fitment Factor is 2.57 to apply for pay revision.
* CGIES (insurance) no change.
* Rate of annual increment retained at 3%.
After the approval of VII CPC report by Government of India on 29.6.2016, the NJCA met on 30.06.2016 at Delhi and unanimously decided to continue the Indefinite Strike w.e.f.11.07.2016.
On 30.06.2016, the NJCA was informed to meet Finance Minister and some ministers at Home Minister residence. Accordingly, few NJCA members met the ministers at 09.30 p.m. The views of NJCA and the disappointment of Central Government employees placed before them. Then Finance minister suggested out on the issue of minimum pay and multiplication factor may be referred to a committee. But NJCA leaders said that if any official meeting is convened or official communication issued, it may be placed before the NJCA and consider to meet and discuss otherwise, we do not agree and continue with our Strike proposal.
Then the NJCA met on 01.07.2016 again the above views were adopted and decided to meet on 06.07.2016 awaiting for any official communication from the Government of India.
Hence, it is intimated to all our affiliated unions, the attitude of Government of India without holding any discussions and not willing to settle the demands through mutual discussions and deciding unilaterally ignoring the National Council JCM is considered a highly objectionable and not agreeable. Thus, NJCA decided to proceed with our decision to commence Indefinite Strike w.e.f.11.07.2016 from 6.00 a.m. onwards.
Any progress before 10.07.2016 takes place, it will be accordingly intimated but till such time you have to proceed with all action for the success through Indefinite Strike.
Yours Sincerely,
Sd/- 
(R.SRINIVASAN) 
General Secretary
Source: INDWF

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