7th Pay Commission: Inflation demands more HRA

New Delhi: House rent allowance or HRA is a core component of central government employees' salary. It is given to every central government employee towards meeting the cost of renting of house in the city of work.

Finance Minister Arun Jaitley said, “Whatever the committee on allowances decides, it will go to the Cabinet.”

But the present rate of house rent allowance — of 30, 20 and 10 per cent — has been reduced to 24, 16 and 8 per cent respectively by the by the 7th Pay Commission.

The Commission also recommended, that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

The central government employees' unions leader said that the proposed house rent is not enough for employees to make a living in cities. They had demanded a hike in House rent allowance 30, 20 and 10 per cent respectively according to new pay matrix. They urged government to hlke the new HRA keeping in mind the House Rent prices prevalent in the market.

The increase in house rent allowances does contribute to inflation. The food inflation constitutes a major chunk of our inflation, when food inflation is moderating, any increase in other factors will get absorbed reasonably, said the Economic Affairs Secretary Shaktikanta Das.

However, The Reserve Bank of India (RBI) expects implementation of the recommendation regarding house rent allowance by the 7th Pay Commission could have an impact on retail inflation.

The sources in the Finance Ministry said that the quantum of House Rent and others allowances may not vary from those proposed by the 7th Pay Commission.

“The committee on allowances headed by Finance Secretary Ashok Lavasa is likely to stick with the 7th Pay Commission’s recommendations on allowances and the government is likely to accept it.” the sources added.

The 7th Pay Commission has recommended abolition of 51 allowances, and subsuming 37 others after examining 196 allowances.

The government has already accepted most of the 7th Pay Commission’s recommendations on advances, with the changes have been put in the office memorandums on October 7.

The abolished advances include bicycle advance, warm clothing advance, advance of pay on transfer, festival advance, natural calamity advance, advance of leave salary and advance for law suits, while interest-free advances that have been retained are medical treatment, travelling allowance (TA) for family of deceased, TA on tour or transfer and Leave Travel Concession (LTC) overriding the 7th Pay Commission’s recommendation.

The interest bearing advances relating to motor car advance and motorcycle/scooter/moped advance has been discontinued and computer advance has been enhanced to Rs. 50,000 as proposed by the 7th Pay Commission.

TST

7th Pay Commission: Fatter allowances report this week “surely”

New Delhi: All the central government employees will get reason to smile soon. Reportedly, much awaited fatter allowances report under the 7th Pay Commission recommendations will be submitted to Finance Ministry this week itself. If sources in Finance Ministry are to be believed then the report will be surely submitted to Finance Minister Arun Jaitley in this week.

The fatter allowances report will be surely submitted to Finance Minister Arun Jaitley in this week.

The sources revealed that the quantum of allowances may not vary from those recommended by the 7th Pay Commission. The committee on allowances sticks with the 7th Pay Commission’s recommendations on allowances.

The fatter allowances is scheduled to be implemented from August 2016 with the hike in basic pay of the 7th Pay Commission recommendations. But the pay commission headed by Justice A K Mathur had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. so, there was resentment among employees over suggestions to scrap some allowances.

Hence, the government had set up a ‘Committee on Allowances’ under the chairmanship Finance Secretary on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance and asked to submit its report with in four months.

However, the committee is ready to submit its report even two months in advance as Finance Secretary Ashok Lavasa recently said, “A committee headed by me is currently examining the Pay Commission’s recommendations on allowances and it will submit its report soon.”

As part of the exercise, the committee held discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services, sources added.

“The cabinet is likely to approve the proposal of committee on allowances and the higher allowances will be implemented with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016,” the sources confirmed.

“Moreover, arrears for higher allowances will be paid from August,” the source assured.

The 4.8 million central government employees and 5.2 million pensioners got theirs arrears of basic pay and pension arising from implementation of the 7th Pay Commission recommendations in one go in August salaries and pension respectively. The hike in basic pay and pension has been made effective from January 1, 2016.

TST

7th Pay Commission: Surgical strikes may delay fatter allowances by a month

New Delhi: Fatter allowances under 7th Pay Commission award may be delayed by a month following surgical strikes carried out by the Army on terror launching pads across the LoC and the government is in a high state of alertness and preparedness to meet any eventuality.

Finance Minister Arun Jaitley is likely to approve the proposal of committee on allowances.

“The process of fatter allowances, which is likely to be implemented within a month, which may be delayed by a month on account of increasing defence activities after surgical strikes,” A Finance Ministry top official told The Sen Times on Friday on condition of anonymity.

He further said “the issue of increased defence activities after surgical strikes in Pakistan may compel the government to keep in abeyance the higher allowances as the position would take a month to get normalized. However the government wants to implement the higher allowances speedily…in a time bound manner.”

“Fearing any eventual terrorism incident in the country and in view of the current scenario and respecting public sentiments, the government has decided to delay the announce of higher allowances by a month,” the official added.

He said that there is pressure on the part of the government to announce the higher allowance even this difficult situation.

India has conducted “surgical strikes” on September 28 in Pakistan-occupied Kashmir in the aftermath of the Uri terror attack which claimed the lives of 19 jawans.

The committee on allowances, which was set up in July this year on the direction of the cabinet, is looking into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

The basic salaries of government employees has been increased on the recommendations of 7th Pay Commission with retrospective effect from January 1, 2016. Till a final decision on allowances is taken based on the recommendations of committee on allowances, all allowances are continue to be paid at 6th Pay Commission rates in 6th Pay Commission pay structure.

The committee on allowances headed by Finance Secretary Ashok Lavasa, already met with employees unions leaders on August 4 and September 1 respectively and the committee prepared its report, the central government employees’ unions leaders said.

“The committee on allowances is ready to submit its report even two months in advance, when the Finance minister calls up, the committee will submit its report,” the official assured.

The official also confirmed the Finance Minister Arun Jaitley is likely to approve the proposal of committee on allowances which will stick to the 7th Pay Commission’s recommendations on allowances like glue and the fatter allowances will be implemented with prospective effect.

However, the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.

TST

7th Pay Commission: No scope to change in minimum pay of Rs 18,000

New Delhi: Finance Ministry sources today said on condition of anonymity, there is no scope to change in minimum pay Rs 18,000, recommended by the 7th Pay Commission and approved by the cabinet.

After cabinet nod of 7th Pay Commission recommendations, Finance Minister Arun Jaitley said central government employees salaries have to be respectable in comparison to public or private sector.

The sources came up with the remark while talking to us about hiking of minimum pay Rs 18,000 by the pay related National Anomaly Committee more than the the cabinet approval of the minimum pay.

Those who will hope over this issue will gain nothing, there is no scope to change in minimum pay Rs 18,000, which was approved by the cabinet, they added.

Replying to a question, the sources said, “The demand of central government employees through National Joint Council of Action (NJAC) for hiking minimum pay Rs 18,000 to Rs 26,000 may be considered by the National Anomaly Committee but they can do nothing.

They said adding “Though government had promised hiking minimum pay after the central government employees unions had threatened to carry out an indefinite strike but now public sector workers demand minimum pay of Rs. 18,000, similar to the central government employees. They now get minimum pay less than Rs 18,000.”

They also told us, “Public Sector Undertaking (PSU), Coal India Limited (CIL) workers set to join the general strike on September 2 for hiking minimum pay of Rs 18,000 equivalent to central government employees.”

“Now, it is generally seen that Public Sector Undertaking employees get less pay than the central government employees and they will demand to hike pay equivalent to central government employees. So, the focus has now shifted to PSUs- whether they would implement a similar pay hike for their employees or not.”

“If they hike pay for their employees, the central government is likely to face difficulty in bearing this extra financial burden. Accordingly, central government employees demand for hiking minimum pay of Rs 18,000 will not be accepted,” they confirmed.

After cabinet nod of 7th Pay Commission recommendations, Finance Minister Arun Jaitley said central government employees salaries have to be respectable in comparison to public or private sector.

TST

OROP panel hearing ex-servicemen issues: Government tells High Court

New Delhi: The Centre today told the Delhi High Court that it has extended by six months the term of the one-member judicial commission on OROP which has commenced public hearings on grievances of ex-servicemen from yesterday.

OROP panel headed by Justice (retired) L Narasimha Reddy.

The submission was made by the government before a bench of justices Badar Durrez Ahmed and Ashutosh Kumar which was hearing a PIL for public hearing of ex-servicemen's grievances as well as extension of the term of the commission, headed by Justice (retired) L Narasimha Reddy.

Central government standing counsel Anurag Ahluwalia told the court that the first public hearing was held at Chandigarh yesterday and would be held at various other places across the country, ending on September 21.

He said the hearing in Delhi would be held on August 19, after which the petitioner's lawyer, Satya Ranjan Swain, said details of the time and venue of the hearing have not been disclosed.

Pursuant to the submission by the petitioner's lawyer, the court directed the government to provide the time and venue details of the public hearing in Delhi to the petitioner today itself and listed the matter for hearing on August 24.

After the hearing and order by the court, Swain said he received an email from the government stating that the public hearing in Delhi would be held on August 19 at 11 AM at Vasundhra Vatika, Raj Rif Centre, Delhi Cantonment here.

The petitioner, S P Singh, who is an ex-serviceman, has sought directions to the Ministry of Defence and the commission "to give an effective public hearing to those affected or aggrieved by implementation of One Rank One Pension (OROP)".

According to the petition, as per a Ministry letter dated April 13, "Defence Forces pensioners/family pensioners, Defence Pensioners' Associations can submit their suggestions/ views on the revised pension as notified, to the MoD, through post or by email within 15 days i.e. by April 29, 2016".

The petitioner has contended that this information was not published in the newspapers and, therefore, people were not informed and added that even the time limit given to forward the representations was "very short".

The Centre today told the court that the date for forwarding suggestions and representations was later extended to May 15.

It also told the court that the commission which was set up in December last year and had to give its report by June this year, can now do so by December.

PTI

Form panels to remove pay related anomaly: Government to departments

New Delhi: All central government departments have been asked to set up committees to look into various pay related anomalies arising out of the implementation of the Seventh Central Pay Commission's recommendations.

Minister of State for Personnel Jitendra Singh

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.

The Departmental Anomaly Committee may be chaired by the Additional Secretary or the Joint Secretary (Administration). If there is no such post, then Financial Adviser of the ministry or department shall be one of the member of the Departmental Anomaly Committee, an order issued by Personnel Ministry said.

"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 or department in the opinion of the Financial Adviser," it said.

The Anomaly Committee shall receive anomalies through Secretary, staff side of respective council up to 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, the Ministry said.

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, it said.

The Arbitrator will consider the disputed cases arising in the Anomaly Committees at the national as well as department level, the order issued to secretaries of all central government departments said.

"All ministries or 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," it said.

The Centre has accepted most of the recommendations of the 7th Pay Commission, to be implemented from January 1, 2016.

PTI

PM Modi announces hike in freedom fighters pensions

New Delhi: Prime Minister Narendra Modi on Independence Day announced a 20 per cent hike in the pension of freedom fighters.

"Pension for our freedom fighters will be increased by 20 per cent. So those who are receiving Rs 25,000 will now get Rs 30,000," Modi said from the Red Fort.

"Pension for our freedom fighters will be increased by 20 per cent. So those who are receiving Rs 25,000 will now get Rs 30,000," Modi said in his third Independence Day address to the nation from the Red Fort here on the 70th Independence Day.

"Tribals played an important role in out freedom struggle. Our government is planning to open museums all over the country to glorify their role so that future generations can know about their sacrifices," Modi said in the Independence Day speech on Monday.

The government, last August, on the 73rd anniversary of the Quit India Day also increased the pension for freedom fighters by hiking dearness relief by 218 per cent.

The present rate of pension is Rs 23,309 per month for political prisoners jailed in the Andamans, Rs 20,1291 for freedom fighters/spouses, Rs 4,770 for unmarried/unemployed daughters and Rs 10,064 for two spouses.

The total number central freedom fighters pensioners as on January 1, 2015 is 35,900.

TST

Demand in Rajya Sabha for a hike in MPs’ salaries, allowances

New Delhi: A demand for raising salaries and allowances of MPs was made in the Rajya Sabha today with members demanding that their salaries should be higher than the revised scale of the Cabinet Secretary.

Ram Gopal Yadav (SP) said after the implementation of the 7th Pay Commission, wages of MPs was less than a PA in the government.

Raising the issue through a Zero Hour mention, Ram Gopal Yadav (SP) said after the implementation of the 7th Pay Commission, wages of MPs was less than a PA in the government.

It is less than the salary a legislator in Delhi Assembly gets. It is not even half of the revised salary of Maharashtra legislators and one-third of those in Telengana, he said.

Yadav said while inflation has soared, the salaries of MPs, who also have to entertain a lot of public visitors, has remained static.

Last month too, SP had raised the demand for early implementation of the recommendations of a Parliamentary Committee headed by Yogi Adityanath on wages and allowances of MPs.

Yadav said the salary of MPs should be higher than the revised scale of Cabinet Secretary after the implementation of the 7th Pay Commission.

PTI

7th Pay Commission: Allowances panel report soon - Manisha Sen

New Delhi: The Allowances committee formed to examine the 7th Pay Commission recommendations on allowances, is likely to submit its report soon.

"Union Cabinet will take a decision on the suggestions of the Allowances committee," Finance Minister Arun Jaitley said.

The Union Cabinet took a decision in June to constitute a Committee for further examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance.

The committee, which was constituted on July 22 headed by Finance Secretary Ashok Lavasa and Secretaries of Home Affairs, Defence, Health and Family Welfare among others as its members, has been asked to submit its report within four months.

Its first meeting took place on August 4.

“The Allowances committee is likely to submit its report soon on allowances under the 7th Pay Commission recommendations,” a senior Finance Ministry official told The Sen Times on Wednesday on condition of anonymity.

7th Pay Commission headed by Justice A K Mathur recommended to abolish 51 allowances and to subsume 37 allowances.

"These measures are radical in nature, even the employees' unions have given their suggestions in the matter and therefore allowances committee has been formed to look into it. Whatever the committee decides, it will go to the Cabinet," Finance Minister Arun Jaitley said in Rajya Sabha on Tuesday.

However, the Union government has decided to pay central government employees arrears of seven months arising from implementation of the 7th Pay Commission recommendations in one go in August salaries excluding allowances.

TST

One-fourths ministers in states educated up to class XII but their average net worth is Rs 9 crore by Ila Choudhary

New Delhi: According to a recent study, out of the 609 ministers analysed from State Assemblies, about 160 ministers have studied up to class XII or below and 76 per cent of them are crorepatis with average assets of Rs 8.59 crore, while 34 per cent of ministers from state assemblies have declared criminal cases against them.

Among the ministers in states with the highest assets is Ponguru Narayana of the Telugu Desam Party with Rs 496 crore.

There are nine ministers who have studied up to class V or lower. A total of 59 ministers have cleared class X while 77 have passed class XII.

Only 157 ministers have attended colleges and are graduates.

The list also comprises those ministers who have postgraduate (125) and doctorate (26) degrees.

The analysis by Association for Democratic Reforms (ADR) said 462 (76%) of them are crorepatis. While there is no dearth of millionaire ministers in the states, Andhra Pradesh is at the top (20 ministers) with average assets of Rs 45.49 crore, followed by Karnataka (31 ministers) at Rs 36.96 crore and Arunachal Pradesh (7 ministers) at Rs 32.62 crore.

On the other hand, north-eastern state Tripura (12 ministers) is at the bottom with average assets of Rs 31.67 lakh, with Kerala (19 ministers) above it at Rs 78.72 lakh and then Manipur (11 ministers) at Rs 83.92 lakh.

Among the ministers with the highest assets is Ponguru Narayana of the Telugu Desam Party with Rs 496 crore, followed by DK Shivakumar of the Congress at Rs 251 crore, says the ADR report.

Three state assemblies — Arunachal Pradesh, Punjab and Puducherry — have the distinction of 100 per cent crorepati ministers.

They are followed by 97 per cent ministers of Karnataka and 92 per cent ministers from Rajasthan, Goa, Meghalaya and Chhattisgarh who also have declared assets valued at Rs 1 crore and above.

The study said 113 (19%) ministers have declared serious criminal cases including of murder, attempt to murder, kidnapping, crimes against women, etc.

The states with the highest percentage of ministers with serious criminal cases include nine from Jharkhand, four from Delhi, nine from Telangana, 18 from Maharashtra, 11 from Bihar and two from Uttarakhand.

The study revealed a dearth of female ministers, as out of the 609 examines, just 51 are women.

The highest number of female ministers is from Madhya Pradesh and Tamil Nadu, with five each.

State cabinets of Arunachal Pradesh, Delhi, Mizoram, Nagaland, Puducherry, Punjab and Telangana have no female ministers.

As far as age goes, a majority of them are between 50 and 60 years old and a few are in the range of 80 to 90 years.

A total of 226 ministers are in the 50-60 age group, 144 are between 60 and 70 years of age, 23 are between 70-80 years and five are more than80 years old.

A total of 609 ministers out of 620 have been analysed from 29 state assemblies and two Union Territories.

Inputs with Mail Today

Government working to roll out GST from April 1, 2017

New Delhi: Setting a target of April 1, 2017 for rollout of the Goods and Services Tax, the government today unveiled a detailed roadmap for its implementation and said it is aiming for an "optimal" rate of taxation though the final decision will be taken by the GST Council.

Finance Minister Arun Jaitley

"What we need is an optimal (GST) rate," Finance Minister Arun Jaitley said while addressing a press conference a day after the Rajya Sabha approved the historic Constitution Amendment Bill, paving way for a complete overhaul of the indirect tax regime in the country.

Once implemented, the GST will subsume various taxes including excise, services tax, octroi and other levies and the proceeds will be shared between the Centre and states.

On what would be the GST rate, Jaitley said the GST Council, which will comprise representatives of the Centre and states, will take a view and "draw a balance" taking into account the revenue requirements and the need to keep the tax rates low.

Talking about the roadmap for the GST rollout, Revenue Secretary Hasmukh Adhia said the government is looking at April 1, 2017 as the target date for implementation.

"Within the next 30 days, we expect 50 per cent of the states -- about 16 -- to approve the Constitution Amendment Bill," he said.

The Bill, which was cleared by the Rajya Sabha last night, is likely to be approved by the Lok Sabha this week after incorporating changes made by the Upper House.

Jaitley said the government is working to roll out the GST as "reasonably quick" as possible.

"It is always good to set a stiff target," Jaitley said when asked about the April 2017 deadline.

PTI

Pensioners need not go to banks to give proof of life: Government

New Delhi: Pensioners need not visit banks to give proof of their life for continuation of pension, the Centre informed the Rajya Sabha today.

Minister of State for Personnel, Public Grievances and Pensions Jitendra Singh

There is no procedural complication in the disbursement of pension or family pension of a central government pensioner or family pensioners. It is credited regularly to their pension account and it does not require the pensioners' physical presence in the pension disbursing bank, Minister of State for Personnel, Public grievances and Pensions Jitendra Singh said in a written reply.

"Further, a pensioner or family pensioner need not visit the bank even for submitting life certificate, which can either be submitted online through Aadhaar-based biometric authentication or be signed by a person designated by the government for this purpose," he said.

In case a pensioner sends intimation about his serious illness or incapacitation supported by a medical certificate, a nominee of the paying branch of the bank visits the pensioner at home or hospital for recording his life certificate, Singh said.

The are about 58 lakh central government pensioners.

Prime Minister Narendra Modi had in November 2014, launched 'Jeevan Pramaan' --an Aadhaar-based digital life certificate for pensioners.

The certification was launched to do away with the requirement of a pensioner having to submit a physical life certificate each year, in order to ensure continuity of his or her pension.

PTI

‘One nation one tax’ will eliminate corruption: FM Jaitley on GST

New Delhi: As the government gears up for a fresh push to get the long-pending GST law passed, Finance Minister Arun Jaitley today said the 'one nation, one tax' regime will reduce the taxation levels and also eliminate corruption.

Finance Minister Arun Jaitley today delivering the 1st Dr A P J Abdul Kalam Memorial Lecture, in New Delhi.

Stressing that India cannot afford the kind of spectrum or coal mines controversies of the past, he said: "This whole idea of one nation one tax is extremely important for India, in not only reducing the level of tax but also for providing an ease (of doing business) and eliminating any forms of corruption".

He said India cannot afford to have an indirect tax system where one is taxed at every point.

Jaitley was delivering the 1st Dr A P J Abdul Kalam Memorial Lecture at India Islamic Cultural Centre here.

The proposed Goods and Services Tax (GST) will subsume most of the indirect taxes. Government has listed the Constitutional Amendment Bill for introduction of GST in Rajya Sabha for consideration and passage next week.

The Finance Minister further said India will need all forms of investments.

"Now investment from private sector ... will come only if India becomes best possible investment destination. For that India has to get rid of corruption, India has to have a quicker decision making process, India has to have business environment which is extremely easy," he said.

He also said that despite easing foreign investment process, there are delays at states level.

"... every time we delay a project, every time we put hurdles, you create an adverse environment where you lose jobs, ancillary units, and revenue which sends a bad picture of India to other future investments," Jaitley said.

PTI

Protect citizens amid ‘rising intolerance’: US to India

Washington: Expressing concern over reports of "rising intolerance and violence" in India, the US has asked the Indian government to do "everything in its power" to protect citizens and to bring to justice the perpetrators.

Two Muslim women carrying buffalo meat were assaulted at the Mandsaur railway station in Madhya Pradesh Tuesday.

Responding to questions on reports of alleged violence against people eating beef and assault on two Muslim women carrying buffalo meat in Madhya Pradesh, State Department Spokesman John Kirby said, "We stand in solidarity with the people and Government of India in supporting exercise of freedom of religion and expression and in confronting all forms of intolerance."

"We're obviously concerned by reports of rising intolerance and violence...As we do in countries facing such problems around the world, we urge the government to do everything in its power to protect citizens and to hold the perpetrators accountable," he said.

Kirby said the US looks forward to continuing to work with the Indian people to realise their tolerant-inclusive vision, which is so deeply in the interests of both India and the US.

In an instance of cow vigilantism earlier this week, two Muslim women who were carrying buffalo meat were assaulted by people at a railway station in Mandsaur on suspicion that it was beef in the presence of police which arrested the duo.

The incident came close on the heels of the attack on dalit youths in Gujarat by cow vigilantes for skinning a dead cow.

PTI

Cabinet approves changes to GST Constitutional Amendment Bill

New Delhi: The Cabinet today approved the amendments to the Goods and Services Constitutional Act. The GST bill, intends to convert 29 states into a single market through a new indirect tax regime.

State finance ministers in a meeting with the finance minister Arun Jaitley on Tuesday had agreed to not including the GST rate in the Constitution.

The amendments were taken up by the Cabinet after FM Jaitley's assurance to state FM that the government will include in the Bill the mechanism of compensating states for all the loss of revenue for 5 years.

However, the Select Committee of the Rajya Sabha had recommended 100% compensation for the likely loss of revenue during that period.

Post the amendments, the Centre will now constitutionally guarantee states against any loss of revenue from the GST subsuming all indirect taxes, including VAT, in the first five years.

The Cabinet, headed by PM Modi, decided to include in the Constitutional Amendment bill that any dispute between states and the Centre will be adjudicated by the GST Council, which will have representation from both the Centre and states.

Among the amendments approved include the abolishment of 1 per cent additional tax levy which was demanded by the Opposition parties led by the Congress.

It also approved the compensation for states for five years instead of the earlier 'up to' five years as proposed in the draft GST bill.

The Cabinet also dropped a 1 per cent manufacturing tax.

The empowered council of state finance ministers in a meeting with the finance minister Arun Jaitley on Tuesday had agreed to not including the GST rate in the Constitution.

The amendments approved will now isolate the Congress which has been demanding the inclusion of the GST rate in the Constitution.

The other demands of including GST rate in the statute and a Supreme Court judge-headed dispute resolution body has not been accepted. It remains to be seen if meeting of its demands halfway will persuade the Congress to support the legislation.

With states on board and the Cabinet approving the amendments, the government hopes to get the long-pending Bill passed in the ongoing monsoon session of Parliament.

According to Nomura, the expected timeline for the passage of GST is by August 12 and there is a 60 per cent probability for this, a PTI report said.

"We believe a constitutional amendment that allows for a goods and services tax (GST) is more likely than not to be passed during the ongoing Monsoon Session of parliament (July 18-August 12)," Nomura was quoted by PTI.

The GST was supposed to be implemented from April 1, 2016 but strong opposition from Congress led to the delay.

There is, however, talk of mentioning the GST rate in one of the two supporting legislations that need to be passed after the Constitution is amended, a move that may pacify the Congress.

The Bill has already been passed by the lower house of Parliament and awaits the passage from the Upper House. It requires two-third vote to get passed from both the houses. Once the Upper House approves the legislation, the amended Bill will have to go back to the Lower House again for approval.

PTI

7th Pay Commission notification at a glance

New Delhi: In a bonanza for 4.8 million central government employees, the government on Monday issued notification and resolution for implementation of the 7th Pay Commission, which had given an overall hike 14.29 percent in basic pay.

Union Finance Minister Arun Jaitley said, “the financial impact of the 7th Pay Commission recommendations is less than that of the 6th Pay Commission.”

Check out the followings to know the benefits and losses of Central government employees under 7th Pay Commission notification and resolution at a glance.

1. The government has notified a 2.57-time hike in basic pay

2. The minimum pay of central government employees with effect from January 1, 2016 will now be Rs 18,000 per month, from existing Rs 7,000 per month.

3. The highest level of Cabinet Secretary, the salary would hike up from Rs 90,000 a month to Rs 2.5 lakh.

4. The new pay structure has dropped the pay band and grade pay and okayed a new pay matrix.

5. A fitment factor of 2.57 will be applied across all levels in the pay matrices. After taking into account the DA at prevailing rate 125 per cent.

"With regard to fixation of pay of the employee in the new Pay Matrix as on 1st day of January, 2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31st day of December, 2015 shall be multiplied by a factor of 2.57," the notification said.

6. There shall be two dates for grant of annual increment, January 1 and July 1, every year instead of the existing July 1 only. However, the rate of annual increment has been retained at 3%.

7. Central government Employees will be entitled to only one annual increment on either of these two dates depending on the date of appointment, promotion or grant of financial up-gradation.

8. Central government Employees will get no new allowances (except Dearness Allowance) with their new pay structure as the cabinet referred the 7th Pay Commission recommendations relating to allowances to a committee headed by Finance Secretary.

The Committee will submit its report within a period of four months, till a final decision, all existing allowances to be paid as per the existing rates in existing pay structure.

9. Dearness Allowance after coming into force of the revised Pay structure shall undergo change accordingly and will be linked to the average index as on January 1, 2016.

10. The Modified Assured Career Progression (MACP) scheme will continue to be administered at 10, 20 and 30 years of service as before.

11. The benchmark for performance appraisal for MACP has been enhanced from Good to Very Good.

12. The annual increments will be withheld in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.

13. Chiefs of regulatory bodies including SEBI and TRAI will now get a consolidated pay package of Rs 4.5 lakh per month, while their full-time members will get Rs 4 lakh each.

The Union Finance Minister Arun Jaitley said in in the Rajya Sabha during Budget session, "the financial impact of the 7th Pay Commission recommendations is less than that of the 6th Pay Commission."

TST

No annual increment for non-performing employees: Government

New Delhi: Non-performing Central government employees will not get annual increment if their performance is not upto the mark, the Centre has said.

The pay panel headed by Justice Ashok Kumar Mathur had in its report to the Centre said that there is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course.

The benchmark for performance appraisal for promotion and financial upgradation has been enhanced to "very good" from "good" level, the Finance Ministry said in an order notifying implementation of Seventh Central Pay Commission's recommendations.

The Modified Assured Career Progression (MACP) scheme will continue to be administered at 10, 20 and 30 years of service as before, the Ministry said as it "accepted" the pay panel's recommendations.

The recommendation of "withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service" has been "accepted", it said.

The pay panel had in its report to the Centre said that there is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course.

"The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted. This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.

"The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service. This will act as a deterrent for complacent and inefficient employees," it had said.

There are about 50 lakh Central government employees.

PTI

‘Not appropriate to compare 7th Central Pay Commission with previous ones’ by Manisha Sen

New Delhi: The government today said it is "not appropriate" to compare the increase in minimum pay suggested by the 7th Central Pay Commission with that of the previous commissions.

Minister of State for Finance Arjun Ram Meghwal

According to the 7th Pay Commission, the real increase given in 1996 and 2006 in minimum pay was 31 per cent and 51 per cent. As compared to that, the commission recommended an increase of 14.29 per cent.

"The 7th Central Pay Commission has worked out its recommendations on pay based on all relevant factors having a bearing on the prevailing circumstances and, therefore, viewing the increase on this occasion in the light of the circumstances obtaining 10 and 20 years ago is not appropriate," Minister of State for Finance Arjun Ram Meghwal said in a written reply to the Rajya Sabha.

He further said that the ratio between the minimum pay of Rs 18,000 per month and pay of Rs 2,25,000 per month in the apex grade works out to be 1:12.5.

"In order to enhance the income of other categories of workers, both central and state governments are required to fix, review and revise the minimum wages of the workers employed in scheduled employment under their respective jurisdictions at an interval not exceeding five years.

"The minimum rate of wages are also applicable for the workers engaged on contract basis," he said while replying to another question.

The pay commission, he added, recommends changes regarding the principles governing the emoluments structure of central government employees and allied services.

Meanwhile, the government today notified the recommendations of the Pay Commission, which will be effective January 1.

PTI

Centre notifies 7th Pay Commission for its employees

New Delhi Central government has issued notification and resolution for the implementation of the 7th Pay Commission recommendations, giving nearly 48 lakh central government employees 2.57 times hike in basic pay.

7th Pay Commission report will be effective from January 1, Finance Minister Arun Jaitley said during a press conference following a Cabinet meeting on June 29.

The minimum pay in central government with effect from January 1, 2016 will now be Rs 18,000 per month; at the highest level, it will be Rs 2.5 lakh.

"With regard to fixation of pay of the employees in the new Pay Matrix as on January 1, 2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on December 31, 2015, shall be multiplied by a factor of 2.57," the notification said.

There shall be two dates for grant of increment - January 1 and July 1 every year - instead of the existing July 1 only.

Employees will be entitled to only one annual increment on either of these two dates depending on the date of appointment, promotion or grant of financial upgradation, it said.

The Cabinet had last month decided on pay increase for central government employees and pensioners, that is estimated to cost the exchequer Rs 1.02 lakh crore annually.

PTI

7th Pay Commission salary from August 1

New Delhi: 7th Pay Commission salary for all central government employees under the new pay matrix will be implemented from August 1, 2016, a top Finance Ministry's official today told the Sen Times.

Finance Minister Arun Jaitley directed to notify the 7th Pay Commission recommendations shortly.

"The new pay matrix will be implemented as per a decision of the cabinet in light of recommendations made in the reports of the 7th Pay Commission," he said in reply to a question from our reporter.

"The Finance Minister Arun Jaitley directed to notify the 7th Pay Commission recommendations shortly," the official said, adding that the notification to this effect will be issued within this week.

“Central government employees could get the revised pay under new pay matrix from their August salaries and arrears are to be paid ahead of festive season of Dussehra,” he confirmed us.

Accordingly, the brightest diyas of coming Diwali will be lit outside houses of central government employees.

Central government employees are now busy counting their new salaries under the new pay matrix along with the hard cash they will receive ahead of Dussehra as arrears from January 2016.

The several central government establishments such as the railways, telecom, air force, army, CPWD, CRPF, DRDO, CISF, Income Tax, Survey of India, customs and excise, among others are in happy mood.

These would perhaps live up to the ‘happy and prosperous’ Diwali greeting. After all, they will get arrears as well as bonus ahead of festive season.

However, they will not get new allowances like HRA, Transport Allowance with their new pay structure as the cabinet referred the 7th Pay Commission recommendations relating to allowances to a committee headed by Finance Secretary.

The committee will complete its work in a time bound manner and submit its reports within a period of 4 months, till a final decision, all existing allowances to be paid as per the existing rates in existing pay structure, the cabinet note says.

No arrears for allowances will be paid, as per usual practice, the allowances would be paid from the date of implementation.

No Dearness allowance (DA) will be paid in the new pay matrix (basic pay) as the existing dearness allowance 125 per cent has been merged with the new basic pay.

A fitment factor of 2.57 will be applied across all levels in the pay matrices. After taking into account the DA at prevailing rate 125 per cent, accordingly, the salary of all government employees will be raised by at least 14.28 % as on January 1. However, the rate of annual increment has been retained at 3%.

The central government employees unions are disappointment as the cabinet approved a 14.28 per cent hike in basic pay, which is significantly lower than what the 6th pay commission had recommended. Sixth Pay Commission had recommended a 20 per cent hike in basic pay which the government doubled while implementing it in 2008.

The government assured them to consider their demands through a High Level Committee, which will soon be set up and the government will take steps accordingly but it will not affect issuing of notification for implementation of 7th Pay Commission.

TST