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Tag: 7th Pay Commission

  • 7th Pay Commission: This government approves 27.5 percent salary hike for seven lakh employees | Personal Finance News

    BENGALURU: The Karnataka cabinet on Monday decided to implement the recommendations of the seventh Pay Commission effective from August one, official sources said. The Chief Minister is expected to make an announcement regarding the pay hike to more than seven lakh state government employees in the Legislative Assembly on Tuesday, the sources said.

    The 7th Pay Commission, headed by former chief secretary K Sudhakar Rao, has recommended a 27.5 percent hike on basic salary of government employees. This is expected to cost the government exchequer an additional Rs 17,440.15 crore annually. Siddaramaiah government was under pressure to decide on a pay hike, after the Karnataka State Government Employees Association announced its plans to go on an indefinite strike from August.

    In March 2023, the then Chief Minister Basavaraj Bommai gave employees an interim 17 per cent salary hike, to which the Siddaramaiah administration is likely to add a 10.5 percentage points hike, which will total to 27.5 per cent hike on basic salary, as per the recommendation of the 7th Pay Commission, the sources said.

  • Good News For Central Government Employees; Union Cabinet Approves 4% DA Hike

    The hike in DA aims to provide relief to government employees and pensioners.

  • Central authorities prone to enhance dearness allowance to 45% for workers and pensioners

    The central authorities is prone to enhance the dearness allowance (DA) for its over 1 crore staff and pensioners by 3 proportion factors to 45% from the present 42%, as per the agreed method for the aim.

    The determination is prone to be taken by the Union Cabinet quickly, after the expenditure division of the Finance Ministry formulates a proposal to hike DA together with its income implication. The proposal will then be put up earlier than the Cabinet for approval.

    Dearness Allowance Revision

    The DA is revised twice a 12 months, in January and July, based mostly on the Consumer Price Index for Industrial Workers (CPI-IW). The newest CPI-IW knowledge for June 2023 exhibits that inflation has risen by 3.24% up to now one month. This implies that the DA is prone to be elevated by 3%.

    The DA hike can be efficient from July 1, 2023. This will imply that central authorities staff and pensioners will get an extra 3% of their primary pay as DA.

    The DA hike is a welcome aid for central authorities staff and pensioners, who’ve been going through rising inflation in latest months. The enhance in DA will assist them to fulfill the rising price of dwelling.

    The DA is offered to staff and pensioners to compensate them for the rising price of dwelling. The CPI-IW is a measure of the costs of products and providers which are generally bought by industrial staff. The DA is calculated by taking the common of the CPI-IW for the previous 12 months.

    DA hike affect

    The DA hike is prone to have a constructive affect on the economic system. It will increase the spending energy of central authorities staff and pensioners, which can result in elevated demand for items and providers. This will assist to create jobs and increase financial progress.

    The DA hike can also be prone to have a constructive affect on the inventory market. Central authorities staff and pensioners are a big group of traders, and the DA hike will give them more cash to take a position. This will result in elevated demand for shares, which can push up inventory costs.

    Overall, the DA hike is a constructive growth for the economic system. It will assist to spice up spending, create jobs, and increase inventory costs.

     

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    Updated: 07 Aug 2023, 08:59 AM IST

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  • DA could also be hiked by 4%: Here’s how dearness allowance in your wage will rise

    The authorities is prone to elevate the dearness allowance for multiple crore workers and pensioners by one other 4%. This would take DA to 42% from the present 38%. DA is revised periodically twice a yr on a half-yearly foundation, and it’s calculated as a proportion of the fundamental wage of workers.

    DA means a cost-of-living adjustment that’s supplied to those workers. The authorities pays DA to assist workers address stubbornly rising costs which is because of excessive inflation. However, in latest months, there was vital easing in client value index (CPI) inflation.

    Shiva Gopal Mishra advised PTI on Sunday, “the CPI-IW for December 2022 was released on January 31, 2023. The dearness allowance hike works out to be 4.23 per cent. But the government does not factor in hiking DA beyond decimal point. Thus DA is likely to be increased by four percentage points to 42 per cent.”

    Generally, the cost on account of DA involving fractions of fifty paise and above could also be rounded to the following larger rupee and the fractions of lower than 50 paise could also be ignored, as per Finance Ministry tips.

    Further, Mishra defined that the expenditure division of the Ministry of Finance will formulate a proposal to hike DA together with its income implication and can put up the proposal earlier than the Union Cabinet for approval.

    Dearness allowance calculation:

    For central authorities workers: The DA is calculated as — (Average of the All-India Consumer Price Index (Base yr -2001 =100) for the final 12 months -115.76)/115.76 x 100.

    For central public sector workers, the DA is calculated as — (Average of the All-India Consumer Price Index (Base yr -2001 =100) for the final 3 months -126.33)/126.33 x 100.

    Last yr, in September, the federal government raised DA by 4%, taking the speed to 38% with impact from July 1, 2022. This was a rise from 34% between January to June 2022.

    If DA is hiked to 42%, then workers’ dearness allowance on their wage will even leap. Notably, DA is totally different relying upon the extent of the pay matrix of an worker. The larger your pay matrix, the upper is DA!

    For instance:

    Level 1 grade pay:

    For occasion, the fundamental wage underneath stage 1 of the 1800 grade pay scale for workers, is ₹18,000 monthly.

    With DA at 42%, the dearness allowance would come at ₹7,560 on the talked about wage (42% of 18,000 pm).

    At 38%, the dearness allowance comes round to ₹6,840 (38% of ₹18,000 pm).

    This can be a rise of ₹720 in dearness allowance at 42%.

    Level 9 grade pay:

    Under stage 9 of 5400-grade pay, the fundamental wage is ₹53,100 monthly. At 42%, the dearness allowance can be ₹22,302 on this fundamental wage, whereas at 38% — it could be ₹20,178.

    Hence, DA will rise by ₹2,124 from January 1, 2023, in comparison with the dearness allowance obtained between July 1, 2022, to December 31, 2022.

    The Labour Ministry revises DA in view of the inflation of many vital issues within the AICPI (All India Consumer Price Index) index.

    At current, India’s inflation is at 5.72% in December 2022, turning into the second month in a row when CPI has stayed beneath RBI’s higher tolerance restrict of 6%. This is the bottom studying in CPI since December 2021. CPI was above RBI’s tolerance restrict from January 2022 to October 2022 earlier than easing.

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  • Central govt clarification on Dearness Relief that pensioners ought to know

    Dearness Relief for pensioners: The central authorities has issued clarification in regard to Dearness Relief (DR) for central authorities pensioners. The Department of Pension & Pensioners’ Welfare underneath the Ministry of Personnel, Public Grievances & Pensions has issued clarification in regard to DR profit being given to retired central authorities staff and stated that Dearness Relief is payable on authentic primary pension earlier than commutation. The involved division has challenge Office Memorandum (OM) on this regard as effectively.

    Issuing clarification on pension calculation, the Department of Pension & Pensioners’ Welfare stated, “References/Representations have been received in this Department seeking clarification whether the Dearness Relief is payable on original basic pension or on pension as reduced after commutation. It is clarified that dearness relief is payable on the original basic pension before commutation or such basic pension before commutation as revised on implementation of recommendations of Pay Commission etc. and not on the pension as reduced after deduction of commuted pension.”

    The clarification is anticipated to place relaxation on the confusion whether or not DR profit is payable on authentic primary pension earlier than commutation or on the diminished pension after commutation.

    Under Rule 52 of CCS (Pension) Rules, 2021, DR profit being given to retired central authorities staff and household pension beneficiaries is granted to pare the value rise. The profit consists of even those that are drawing compassionate allowance underneath Rule 41. It is payable half-yearly and central authorities introduced DR allowance together with the Dearness Allowance (DA). each DA and DR will increase in tandem the place DA hike is relevant on working central authorities staff whereas DR hike is relevant on central authorities pensioners that embody household pensioners as effectively.

    Under seventh Central Pay Commission (seventh CPC), current or present DR charges for central authorities pensioners is 38 per cent, which is calculated on the essential pension earlier than commutation and never on the diminished pension after commutation. The DR fee of 38 per cent is relevant from 1st July 2022 as central authorities not too long ago introduced 4 per cent DA and DDR hike.

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  • Dearness Allowance hiked for central govt staff, pensioners forward of Diwali

    The Union Cabinet on Thursday permitted a rise of three proportion factors on the Dearness Allowance (DA) Dearness Relief (DR) for central authorities staff and pensioners from 28%. After this hike, the DA will improve to 31%. The hike comes into impact from 1 July, 2021, introduced union minister Anurag Thakur in a press briefing in New Delhi.

    The new hike comes simply days forward of Diwali and is aimed to learn over 47 lakh staff and 68.62 lakh pensioners. The mixed influence on the exchequer on account of each Dearness Allowance and Dearness Relief can be Rs.9,488.70 crore every year, the federal government stated in a press release. 

    Earlier this 12 months, the federal government had determined to hike the DA for central authorities staff by 11 proportion factors from 17% to twenty-eight%. The improve displays the extra instalments arising on 1 January, 2020, 1 July 2021 and 1 January 2021.

    The DA and DR instalments are due for 4 intervals specifically January 1, 2020, July 1, 2020, January 1, 2021 and July 1, 2021.

    The authorities had frozen all such hikes final 12 months as coronavirus had dented its income. The DA hike for central authorities staff is prone to price the federal government about ₹34,400 crore yearly.

    During the press briefing, Thakur additionally talked about India’s feat of attaining the milestone of administering 100 crore Covid-19 jabs until now. 

    “I congratulate everybody for attaining 100 crore vaccination mark. We achieved it regardless of an environment of apprehensions,” he stated.

    The Cabinet additionally cleared the PM Gati Shakti – National Master Plan for multi-modal connectivity to financial zones. This comes per week after Prime Minister Narendra Modi launched the ₹100 lakh crore nationwide grasp plan for multi-modal connectivity.

     

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  • Dearness Allowance (DA) elevated from 17% to twenty-eight%: 10 issues to know

    The Centre on Wednesday elevated the Dearness Allowance (DA) and Dearness Relief (DR) for central authorities staff and pensioners by 11% from the present charge to convey it to twenty-eight% efficient from 1 July, 2021.

    The authorities had frozen all such hikes, which had been due from January 1, 2020, July 1, 2020 and January 1, 2021 as coronavirus had dented its income.

    Here are key factors to be aware of:

    -The charge at which the Centre gave Dearness Allowance was 17% earlier, which has now been elevated to twenty-eight%.

    -The enhance displays the extra instalments arising on 1 January, 2020, 1 July 2021 and 1 January 2021.

    -The charge of Dearness Allowance/Dearness Relief for the interval 01.01.2020 to 30.06.2021 shall stay at 17%.

    -The enhance within the DA and DR will impose a further annual burden of ₹34,401 crore on the exchequer, Minister of Information and Broadcasting Anurag Thakur advised reporters after the cabinet assembly.

    -The transfer, Thakur mentioned, will profit about 48.34 lakh central staff and 65.26 lakh pensioners.

    -“The government has decided to increase DA to central government employees and DR to pensioners with effect from July 1, 2021 representing an increase of 11 per cent over the existing rate of 17 per cent of the basic pay/pension,” mentioned a launch.

    -“#Cabinet approves restoring of three instalments of Dearness Allowance and Dearness Relief with effect from 01.07.2021 representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension. No arrears for the period from 01.01.2020 till 30.06.2021 shall be paid,” the official deal with of PIB tweeted.

    -The finance ministry had in April 2020 determined to placed on maintain increment in dearness allowance (DA) for 50 lakh central authorities staff and 61 lakh pensioners until July 2021 because of the COVID-19 disaster.

    -“In view of the crisis arising out of Covid-19, it has been decided that the additional instalment of dearness allowance (DA) payable to central government employees and dearness relief (DR) to central government pensioners, due from 1st January, 2020 shall not be paid. Additional instalments of DA & DR from 1 July 2020 & 1 Jan 2021 shall also not be paid,” the Ministry of Finance had mentioned in a memo. However, DA and DR at present charges will proceed to be paid.

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  • Good information for central govt workers! Union Cabinet hikes DA from 17% to twenty-eight%

    In what comes as an enormous reduction to the central authorities workers, the Union Cabinet on Wednesday restored the proposal of giving them the Dearness Allowance (DA) and Dearness Relief (DR) hike with impact from July 1, 2021.

    Announcing the restoration and hike on DA, I&B Minister Anurag Thakur mentioned that Union Cabinet has hiked the Dearness Allowance from 17% to twenty-eight% for central authorities workers. “The Central government has decided to increase the dearness allowance for central government employees and pensioners by 11% to 28%,” mentioned Thakur.

    The DA and DR instalments are due for 4 intervals specifically January 1, 2020, July 1, 2020, January 1, 2021 and July 1, 2021.

    The authorities froze all such hikes final 12 months as coronavirus had dented its income. The DA hike for central authorities workers is prone to value the federal government about ₹34,400 crore yearly.

    Currently, the central workers get DA of 17%. Last 12 months, the Union Cabinet had permitted a 4% improve in DA for presidency workers and pensioners to 21%. This was to be efficient from January 1, 2021.

    However, the finance ministry had in April 2020 determined to placed on maintain increment in dearness allowance (DA) for 50 lakh central authorities workers and 61 lakh pensioners until July 2021 because of the COVID-19 disaster.

    “In view of the crisis arising out of Covid-19, it has been decided that the additional instalment of dearness allowance (DA) payable to central government employees and dearness relief (DR) to central government pensioners, due from 1st January, 2020 shall not be paid. Additional instalments of DA & DR from 1 July 2020 & 1 Jan 2021 shall also not be paid,” the Ministry of Finance had mentioned in a memo. However, DA and DR at present charges will proceed to be paid.

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  • seventh pay fee: 5 newest bulletins for govt workers, pensioners

    seventh pay fee newest information in the present day: The central authorities has introduced numerous reduction measures for close to 52 lakh central authorities workers and round 60 lakh pensioners. Restoring seventh pay fee DA (Dearness Allowance) and seventh CPC DR (Dearness Relief) profit, simplifying seventh CPC pension guidelines, and so on. are among the newest bulletins that heart made to make life simple for close to 1.12 crore central authorities workers and pensioners.

    We listing out high 5 newest bulletins that’s going to elevate seventh pay fee pay matrix of a central authorities worker and seventh CPC pension:

    1] seventh CPC DA, DR restoration: As per the announcement made by Minister of State (MoS) on the Ministry of Finance within the Rajya Sabha, heart has restored seventh pay fee DA and seventh pay fee DR advantage of the central authorities workers and pensioners respectively from 1st July 2021. However, the federal government is but to make announcement in regard to resumption of this seventh CPC DA and seventh CPC DR profit. However, National Council of JCM — a Government of India (GoI) recognised platform that fights for the reason for central authorities workers — has claimed that Cabinet Minister has assured them to renew DA and DR from September 2021.

    2] House Building Advance (HBA) profit: To assist these central authorities workers who wish to assemble their very own home, the central authorities within the month of June 2020 introduced House Building Advance (HBA) profit to all central authorities servants (CGS). The fundamental rate of interest charged on this HBA is 7.9 per cent and the HBA profit will stay obtainable until thirty first March 2022. Keeping seventh pay fee pay matrix and seventh CPC approval provisions in focus, heart just lately up to date the HBA pointers for the central authorities workers.

    3] Change in time-limit for submission of Travelling Allowance on retirement: The Central authorities just lately introduced extension of time-limit for submission of Travelling Allowance (TA) claims from 60 days to 180 days. This resolution’s resolution to vary time-limit for TA submission on retirement grew to become efficient from fifteenth June 2021. The transfer is predicted to assist retiring central authorities workers as submission of TA claims inside 60 days was little hectic for central authorities servants (CGS).

    4] Pensioners to get pension slip through e mail, SMS, WhatsApp: With an goal to make sure ‘Ease of Living’ for close to 60 lakh pensioners, the central authorities just lately directed the pension disbursing banks to concern pension slip to the pensioners with full break up. The heart additionally directed the respective banks to concern pension slip through SMS on the registered cellular variety of the pensioners. Banks are additionally suggested the pension disbursing banks to concern pension slip on the given e mail ID of the pensioner and if wanted, use social media platforms like WhatsApp, and so on. as properly. This initiative has turn out to be efficient from 1st July 2021.

    5] Simplification of seventh pay fee pension profit: The central authorities just lately introduced to simplify the household pension guidelines for central authorities servants. Announcing in regards to the adjustments in guidelines made by the Department of Pension & Pensioners Welfare (DoP&PW), Union Minister Dr. Jitendraa Singh stated that within the modified rule provisional household pension can be sanctioned instantly on receipt of declare for Family Pension and Death Certificate from the eligible member of the family with out ready for different formalities or procedural necessities to be accomplished.

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  • seventh pay fee newest information: New household pension guidelines defined

    seventh pay fee newest information as we speak: The central authorities has simplified the seventh pay fee household pension rule for partner or members of the family of the deceased central authorities pensioners. The Department of Pension & Pensioners’ Welfare has directed the pension disbursing banks for expeditious settlement of seventh CPC household pension profit by simplifying the seventh pay fee household pension norms. The central authorities’s transfer is anticipated convey reduction for round 60 lakh central authorities pensioners.

    The Department of Pension & Pensioners’ Welfare knowledgeable concerning the resolution from its official twitter deal with and mentioned, “Department of Pension & PW has issued instructions for Expeditious settlement of family pension cases by banks.” The tweet additionally carried the round issued by the division directing banks for expeditious settlement of household pension.

    Department of Pension & PW has issued directions for Expeditious settlement of household pension circumstances by banks. pic.twitter.com/3XO0UbY5q3— D/o Pension & Pensioners’ Welfare , GoI (@DOPPW_India) July 1, 2021

    The DoPPW letter learn, “…… instances have been brought to the notice of this Department where, on death of a pensioner, the spouse/family members of the deceased pensioner are asked by the Pension Disbursing Banks to submit details and documents, which are otherwise not required for commencement of family pension. This amounts to harassment of the spouse and family members and often leads to avoidable delay in commencement of family pension by the Banks.”

    The DoPPW letter went on so as to add that the partner/member of the family, whose title is included within the PPO issued to the deceased pensioner, is required to submit solely the next particulars/ paperwork for graduation of household pension to him/her:

    1] In circumstances the place the deceased pensioner and partner have been holding a joint account:

    a) A easy letter/utility for graduation of household pension;

    b) Death certificates in respect of the deceased pensioner;

    c) Copy of PPO issued to the pensioner, if obtainable; and

    d) Proof of age/date of beginning of the applicant.

    2] In circumstances the place the partner didn’t have the joint account with the deceased pensioner:

    a) Application in Form 14 bearing the signatures of two witnesses;

    b) Death certificates in respect of the deceased pensioner;

    c) Copy of PPO issued to the pensioner, if obtainable; and

    d) Proof of age/date of beginning of the applicant.

    Now, Form 14 isn’t required to be attested by a Gazetted officer, and so forth. The paying financial institution will determine the partner/member of the family based mostly on the knowledge given within the PPO and its personal “Know Your Customer” procedures.

    3] In circumstances the place, on loss of life of the pensioner and partner, household pension has to cross over to a different member of the family;

    a) If the opposite member of the family has been co-authorized for household pension within the PPO, the identical process as in sub-para II above shall be adopted.

    b) If the title of the opposite member of the family isn’t included within the PPO, he/she could also be suggested to method the workplace which the Government servant/pensioner final served, for difficulty of a contemporary PPO.

    Issuing tips to the pension disbursing banks the DoPPW round mentioned, “You are requested to issue suitable instructions to the CPPC(s) and the pension paying branches of your Bank to obtain only the minimum essential details/documents, as mentioned above, from the claimants of family pension, and to ensure that they are not subjected to any harassment by seeking unnecessary details and documents. The details of family members, other than the Applicant, are not relevant for commencement of family pension by the bank and the same should not, therefore, be sought from the Applicant under any circumstances.”

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