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Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits

, by indianmilitaryveterans

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation. Earlier, in June, 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of Rs 84,933 crore for 2016-17 (including arrears for 2 months of 2015-16). The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be Rs.1,76,071 crore. Some of the important decisions of the Cabinet are mentioned below: 1. Revision of pension of pre – 2016 pensioners and family pensioners The Cabinet approved modifications in the recommendations of the 7th CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet. The modified formulation of pension revision approved by the Cabinet will entail an additional benefit to the pensioners and an additional expenditure of approximately Rs.5031 crore for 2016-17 over and above the expenditure already incurred in revision of pension as per the second formulation based on fitment factor. It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners. While approving the implementation of the 7th CPC recommendations on 29th June, 2016, the Cabinet had approved the changed method of pension revision recommended by the 7th CPC for pre-2016 pensioners, comprising of two alternative formulations, subject to the feasibility of the first formulation which was to be examined by the Committee. In terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as per the second formulation multiplying existing pension by a fitment factor of 2.57, though the pensioners were to be given the option of choosing the more beneficial of the two formulations as per the 7th CPC recommendations. In order to provide the more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner. The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases. The Committee reached its findings based on an analysis of hundreds of live pension cases. The modified formulation will be beneficial to more pensioners than the first formulation recommended by the 7th CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies. 2. Disability Pension for Defence Pensioners The Cabinet also approved the retention of percentage-based regime of disability pension implemented post 6th CPC, which the 7th CPC had recommended to be replaced by a slab-based system. The issue of disability pension was referred to the National Anomaly Committee by the Ministry of Defence on account of the representation received from the Defence Forces to retain the slab-based system, as it would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount of disability pension for future retirees when compared to percentage-based disability pension. The decision which will benefit existing and future Defence pensioners would entail an additional expenditure of approximately Rs. 130 crore per annum.

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Implementation of the recommendations of the Seventh Central Pay Commission. — Dress Allowance.

, by indianmilitaryveterans

No.19051/1/2017-E.IV
Government of India Ministry of Finance Department of Expenditure New Delhi, the 2nd August 2017
OFFICE MEMORANDUM
Subject: – Implementation of the recommendations of the Seventh Central Pay Commission. — Dress Allowance.

Consequent upon the decisions taken by the Government on the recommendations of the Seventh Central Pay Commission, in super session of the existing orders relating to Uniform related Allowances viz. Clothing Allowance, Initial Equipment Allowance, Kit Maintenance Allowance, Robe Allowance, Robe Maintenance Allowance, Shoe Allowance, Uniform Allowance and Washing Allowance which have been subsumed in a single Dress Allowance, the President is pleased to decide the rates of Dress Allowance in r/o the following categories of Central Government employees as under:-

1.Special Protection Group (SPG) Operational27,800/-
Special Protection Group (SPG) Non-operational21,225/-
2.Officers of Army /IAF/ Navy/CAPFs/CPOs RPF/RPSF/IPS/Coast Guard.20,000/-
3.MNS officers, Officers of DANIPS/ACP of Delhi Police/other Union Territories.15,000/-
4.Executive staff of Customs, Central Excise and Narcotics Department (both in summer and summer-cum-winter), Indian Corporate Law Service (ICLS) Officers, Legal officers in NIA, Bureau of Immigration Personal (in Mumbai, Chennai, Delhi, Amritsar, Kolkatta and all check points of Bureau of Immigration) PBORs of Defence Services CAPFs/PF/Police Forces of Union Territories and Indian Coast Guard, Station Masters of Indian Railways.10,000/-
5.Other categories of staff who were supplied Uniforms and are required to wear them regularly like Trackmen, Running staff of Indian Railways, Staff Car Drivers, MTS, Canteen staff of Non-Statutory Departmental Canteens, etc.5,000/-
6.Nurses1,800/- per month

2.Allowances related to maintenance, washing of Uniform are subsumed in. Dress Allowance and will not be payable separately.

3.Further categories of staff who were earlier being provided Uniforms, will henceforth not be provided with Uniforms.

4 The amount of Dress Allowance shall be credited to the salary of employees directly once a year in the month of July.

5.This allowance covers only the basic uniform of the employees. Any special clothing like that provided at Siachen Glacier or inside submarine or fluorescent clothing provided to Trackmen or Indian Railways or to IB personnel posted at high altitudes will continue to be provided by the concerned Ministry as per existing norms.

6.Outfit Allowance, paid to Indian Foreign Service officers and employees will continue to be provided as before, is enhanced by 50%.

7.The rates of Dress Allowance will go up by 25% each time Dearness Allowance rises by 50%.

8.These orders shall take effect from 01st July, 2017.

9. Separate orders will be issued by Ministry of Defence, Ministry of Home Affairs, Ministry of Railways, Ministry of Health & Family Welfare, Ministry of Corporate Affairs, Ministry of External Affairs, Department of Revenue, Department of Personnel & Training and Cabinet Secretariat in respect of employees of these Ministries/ Departments.

10. In so far as the persons serving in the Indian Audit & Accounts Department are concerned, these orders issue in consultation with the Comptroller & Auditor General of India.

sd/- (Annie George Mathew):
Joint Secretary to the Government of India

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