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Tag: 7th pay commission allowance

  • seventh Pay Commission: CAG audit finds fraudulent LTC claims

    seventh Pay Commission: The Comptroller and Auditor General (CAG) of India has discovered fraudulent Leave Travel Concession (LTC) claims by some central authorities staff. The CAG report identified tweak in seventh CPC LTC guidelines for air journey and mentioned that varieties of fraudulent LTC claims embody change in authentic quantity talked about in authentic air ticket to larger quantity, deleting the title of unauthorised journey agent via which air ticket was booked and in some instances air tickets have been booked via authorised mode however the precise quantity paid to the airline was discovered to be altered.

    The CAG report went on so as to add that the air ticket had ample indications that air tickets have been cast viz. absence of mode of cost, absence of title of reserving companies, quantity of service tax not tallied with the bottom fare proven on the ticket, absence of break up air fare on the tickets, point out of phrase ‘Under LTC 80 Fare’ within the ticket of personal airline, and so forth.

    Taking the officers to the duty who authorized these fraudulent LTC claims the CAG report mentioned, “The officials responsible for passing and paying the bills, reimbursed the amount without applying due diligence.”

    While reminding in regards to the seventh pay fee LTC rule for air journey, the CAG report added, “Air tickets were to be purchased either directly from the airline or through the authorised agents only.”

    Taking a dig on the intent of the central authorities staff indulged in fraudulent LTC claims the CAG report mentioned, “Efforts should be made by the Government Servants to book air tickets at the cheapest fare possible.” The report suggested all ministries and departments to deliver it to the discover of their staff that any misuse of this seventh CPC perk will likely be views severely and the central authorities staff will likely be answerable for applicable motion below the foundations.

    The CAG workplace has additionally directed its inside audit wings to look at the LTC claims paid throughout 2010-11 onwards together with their common audit and compliance report back to be submitted to its workplace by thirtieth September 2021.

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  • seventh Pay Commission: Travel Allowance (TA) hike for CGS not coming in July 2021

    seventh Pay Commission newest information: The media has been buzzing with hypothesis that central authorities workers’ Travel Allowance (TA) will rise from this July after the middle’s announcement to revive Dearness Allowance (DA) of the central authorities workers. However, for info to the central authorities servants (CGS), their TA will not rise in sync with the DA hike as the present DA will not be 25 per cent or above. As per the seventh CPC pay matrix calculation rule, TA hike will not be relevant in seventh pay fee pay matrix from July 2021 as present DA of central authorities workers is 17 per cent solely.

    Highlighting the seventh CPC pay calculation rule for central authorities workers’ TA Shiv Gopal Mishra, Secretary — Staff Side at National Council JCM stated, “It’s true that central government employees’ TA rises in sync with the DA hike. But, this is possible only when the DA is 25 per cent of above. Currently, central government employees’ DA is at 17 per cent that means their TA won’t rise as some media houses are reporting.” Mishra went on so as to add that after the DA restoration in July 2021, DA will probably be greater than 25 per cent and therefore when the DA hike announcement for July to December 2021 will probably be introduced then solely TA hike might be anticipated.

    The Secretary — Staff Side at National Council JCM went on so as to add that at present, the DA hike announcement for January to June 2021 continues to be anticipated. So, a central authorities worker can count on DA hike announcement getting due from 1st July 2021 by Dusshehra to Diwali means the DA hike affect will lastly mirror in central authorities workers’ seventh CPC Pay Matrix by the top of 2021.

    Due to the Covid-19 pandemic unfold, the middle had freezed CGS’s DA until June 2021. This led to non-restoration of three DA installments introduced for the interval of 1.1.2020 to 30.6.2020, 1.7.2020 to 31.12.2020 and 1.1.2021 to 30.6.2021. When the freezing of DA was introduced, central authorities workers’ DA was at 17 per cent of their fundamental wage.

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  • seventh Pay Commission: How DA restoration will change seventh CPC pay matrix of CGS

    seventh Pay Commission wage calculator: After the announcement of Dearness Allowance (DA) restoration for round 52 lakh central authorities workers, central authorities servants (CGS) are busy calculating the way it will change their seventh pay fee matrix. The purpose for CGS’ seventh CPC wage calculation is as a result of modifications happening of their seventh CPC pay matrix. As per the Narendra Modi Government’s announcement, heart goes to revive DA good thing about central authorities workers from 1st July 2021. The Ministry of Finance (MoS) Anurag Thakur made an announcement final month on this regard within the Rajya Sabha in a written reply to a query.

    DA hike impression on seventh Pay Commission Matrix

    As the middle has declared to subsume all three pending DA installments from 1st July 2021, a central authorities worker’s DA is anticipated to leap from present 17 per cent to twenty-eight per cent. This contains 3 per cent DA hike efficient from 1st January 2020, 4 per cent DA hike efficient from 1st July 2020 and anticipated 4 per cent DA hike due from 1st January 2021.

    seventh Pay Commission fitment issue

    As per the Seventh Pay Commission guidelines, a central authorities worker’s wage is split in three elements — fundamental wage, allowances and deductibles. Net CTC is a central authorities worker is summation of fundamental wage multiplied by the seventh CPC fitment issue plus all allowances. However, internet wage is distinction of Net CTC and deductibles like PF contribution, Gratuity, and many others.

    Since, seventh pay fee fitment issue is 2.57. A central authorities worker’s CTC aside from allowance is a a number of of fundamental wage with 2.57. Suppose, a central authorities workers fundamental month-to-month wage is ₹20,000. In that case, that central authorities worker’s month-to-month CTC aside from allowance shall be ₹51,400 ( ₹20,000 x 2.57).

    Now comes different a part of CTC means allowance. This allowance contains Dearness Allowance (DA), Travel Allowance (TA), House Rent Allowance (TA), medical reimbursement, and many others. Since, DA could rise from 17 per cent to twenty-eight per cent from 1st July 2021, a central authorities shall be eligible for 28 per cent DA, which is calculated on the premise of 1’s fundamental wage. Similarly, one’s Travel Allowance (TA) will rise in sync with the DA. so, one’s TA will even rise. So, after the rise in DA, a central authorities worker’s allowance can also be going to extend. So, this anticipated rise in DA of a central authorities worker goes to end in massive leap in a single’s month-to-month wage. aside from that, three installments of DA arrears are additionally going to do icing on the cake for CGS.

    The doable DA hike will impression a central authorities worker’s month-to-month PF, Gratuity contribution too as a result of CGS’ PF and gratuity contribution is calculated on the premise of fundamental wage plus DA. As DA goes to rise from 1st July 2021, an worker’s month-to-month Pf and gratuity contribution will even go northward. meaning extra money accumulation within the retirement-oriented funds like PF and Gratuity.

    So, DA restoration goes to vary seventh CPC pay matrix of a central authorities worker and the change is optimistic for them.

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  • seventh Pay Commission: How seventh CPC fitment issue finalises CGS’ wage

    seventh Pay Commission: After the implementation of seventh CPC (Central Pay Commission), fitment issue was one of the talked about matter among the many central authorities staff. Reason for a lot thrust on Seventh Pay Commission fitment issue was its position in ultimate calculation of a central authorities servants (CGS) wage. According to the Seventh Pay Commission suggestions, a central authorities worker’s wage apart from allowance is determined by one’s fundamental wage and fitment issue.

    seventh CPC Salary: Fitment issue

    According to seventh CPC suggestions, the fitment issue is 2.57. While deciding a central authorities worker’s wage apart from allowances like Dearness Allowance (DA), Travel Allowance (TA), House Rent Allowance (HRA), and many others., one’s foundation wage is multiplied with the seventh CPC fitment issue, which is 2.57. For instance, if a central authorities worker’s fundamental wage is ₹18,000; then its wage apart from allowance will probably be ₹46,260 ( ₹18,000 X 2.57).

    Seventh Pay Commission: DA hike calculation

    Once, a central authorities worker’s month-to-month wage apart from allowance is finalised. Then there are numerous allowances like DA, TA, HRA, medical re-imbursement, and many others. A central authorities worker’s DA is hedge towards inflation. It is introduced twice in a 12 months for January to June and from July to December interval. While saying DA, middle makes averaging of inflation rise throughout the first six month of the 12 months after which subsequent six month of the 12 months. On the premise of that, they announce the closest spherical determine as DA hike, which is larger than the typical inflation. Currently, common inflation is round 3.5 per cent (as per the AICPI) for July to December 2020 interval. That’s why hypothesis is rife that DA hike due for January to June 2021 could be not less than 4 per cent.

    Once DA hike is introduced, a central authorities worker’s TA goes as much as the tune of DA hike mechanically. So, DA hike is linked to TA additionally. Similarly, HRA and medical reimbursement is calculated and as soon as all heads beneath the allowance is calculated, a central authorities worker’s month-to-month CTC is determined.

    PF, Gratuity deduction

    After all allowance and wage different allowance is finalised. Then comes the deductible portion like month-to-month Provident Fund (PF), Gratuity contribution, and many others. Since PF and gratuity contribution is linked to fundamental wage and DA. One’s PF and gratuity contribution is determined utilizing this system. After all deductibles are finalised, then the web month-to-month wage is determined by deducting the PF, Gratuity and different month-to-month contributions from one’s internet CTC. After this deduction, a central authorities worker’s month-to-month take dwelling wage is determined.

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  • seventh Pay Commission: Your month-to-month PF contribution could change from July

    The central authorities has frozen Dearness Allowance (DA) for the central authorities staff until June 2021. While saying the choice, Centre stated that they may proceed to announce DA on time however it will not get added in central authorities servant’s wage until June 2021.

    However, they made it clear that after, the DA is restored, all three instalments of DA arrears — January to June 2020, July to December 2020 and January to June 2021 — will likely be added in CGS’ wage. Since, month-to-month Provident Fund (PF) contribution is calculated on the idea of a central authorities’s fundamental wage plus DA. The DA hike will result in rise in a single’s month-to-month PF contribution or PF stability within the long-term.

    How will DA go northward:

    If there isn’t any additional extension within the DA profit being given beneath seventh CPC (Central Pay Commission) to the central authorities servants (CGS), there will likely be big bounce in central authorities staff’ DA. As per the AICPI (All India Consumer Price Index) newest knowledge, one can count on at the least 4 per cent DA hike for January to June 2021 interval. Apart from this, 3 per cent DA introduced for January to June 2020 and 4 per cent DA introduced for July to December 2020 can also be anticipated to get added in central authorities staff’ current DA, which is presently at 17 per cent. So, in case of no furtehr extension nof DA freeze, a central authorities worker’s DA could be anticipated to go as much as 28 per cent from current 17 per cent.

    How DA rise will result in extra PF contribution:

    As month-to-month PF contribution is set on the idea of 1’s fundamental wage plus DA. The rise in DA from current 17 per cent to twenty-eight per cent won’t solely result in rise in central authorities staff’ month-to-month wage. It will result in rise of their month-to-month PF contribution as effectively. And it is a well-known undeniable fact that rise in PF contribution means rise in PF stability in the long term as extra PF curiosity will get added in a single’s PF account.

    Benefit for pensioners

    Like 52 lakh central authorities staff, 58 lakh retired central authorities staff or pensioners are additionally eagerly ready for his or her Dearness Relief (DR) profit restoration as heart has freezed each DA and DR until June 2021. Pensioners’ DR profit may get restored from July 2021 if there isn’t any additional extension in DR profit freezed until June 2021. Like DA for central authorities staff, heart offers DR profit to the retired central authorities staff to assist them beat the warmth of inflation. In this DR profit, a pensioner’s DR will get elevated robotically when the DA hike is introduced. So, DA restoration may carry cheer on the face of neasr 58 lakh central authorities pensioners.

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