7th Pay Commission to bump up inflation temporarily, says HSBC report

7th Pay Commission to bump up inflation temporarily, says HSBC report

7th Pay Commission: The Seventh Pay Commission and implementation of GST has put inflation in an uncertain zone, and prices are expected to rise temporarily, says an HSBC report. 

The Seventh Pay Commission and implementation of GST has put inflation in an uncertain zone, and prices are expected to rise temporarily, says an HSBC report. Both GST and HRA increase have kicked in from July 1 and though the pay commission allowances are likely to bump up inflation, the Reserve Bank is expected to cut repo rate by 25 bps in its August meeting. The HSBC report said as the centre implements HRA increase, headline inflation is likely to rise by about 65 bps for a year and if the states follow suit and implement the increase as one block, inflation would rise by another 65 bps. However, if the centre implements the HRA immediately and the states in a staggered manner over two years, then inflation would rise quickly at first, but would go back to the 4 per cent target in 2019, as the statistical impact fades.

On the contrary, the report said, GST is expected to help lower inflation by 10-50 bps over time. “The tax rates have been set such that, if over time tax cuts are passed on to final consumers, and the input tax credit mechanism works smoothly, the GST could actually lower inflation by 10-50 bps,” the report said. Regarding RBI’s policy stance, HSBC expects a 25 bps cut in repo rate in the August meeting. “…our assessment is that once the statistical impact wears off, inflation will return to 4 per cent handle in 2019, we continue to expect the RBI to cut the repo rate by 25 bps in the August meeting,” HSBC said.

On the fiscal front, the allowances are likely to cost the centre 0.1 per cent of GDP more than budgeted in 2017-18, HSBC said adding that for now this could be managed with “cuts elsewhere”. The Union Cabinet on June 28 approved recommendations of Seventh Pay Commission with 34 modifications which will impose an additional annual burden of Rs 30,748 crore on the exchequer. The increased allowances are based on the recommendations of the Committee on Allowances (CoA).

Source: financial express

Cabinet’s Decision On Allowance To Central Government Employees

Cabinet’s decision on Allowance to central Government Employees

No.014/1014/NC(JCM)/AIDEF/17

Dated: 30.06.2017

To
Comrade Shiva Gopal Mishra,
Secretary/ Staffside,
National Council (JCM),
13-C, Ferozsha Road, New Delhi.

Subject : Cabinet’s decision on Allowance to central Government Employees.

Dear Comrade,

After the decision taken by the Cabinet on the Lawasa Committee’s recommendation on the CPC Allowances including HRA, there is a total discontentment amongst the Central Govt. Employees. The Govt. assured NJCA that within 4 months they will settle all the 7th CPC related demands. However the Govt. made the Central Govt. Employees to wait for more than an year and ultimately has decided to implement what the 7th CPC has recommended with some minor changes here and there. The demand of the NJCA and Staffside to revise the Allowances from 1/1/2016 has been rejected and Govt. has decided to revise the same only from 01/07/2017, thereby denying the arrears on Allowances to the Central govt. Employees.

The Govt. is remaining silent on the demand of minimum pay, fitment factor and NPS. The Govt has already rejected the option No.1 recommended by Th CPC to the pre-2016 pensioners.

In this situation this Federation is of the view that you may urgently call a meeting of the NJCA or Staff Side to discuss the entire issue and to take decision on future course of action considering the anger, dissatisfaction and discontentment amongst the Central Govt. employees. We hope you will appreciate the seriousness of the situation.

With regards,

Yours Comradely,

S/d,

(C. Sri kumar)

General Secretary. 

Source : ConfederationHq

7th Pay Commission: Higher Allowances From This Month Salary; Govt Employees To Get Maximum HRA Hike Of 157%

7th Pay Commission: Higher allowances from this month salary; govt employees to get maximum HRA hike of 157%

Know how more than 48 lakh central government employees will start getting maximum HRA hike (House Rent Allowance) of 157 percent from July month salary.

7th Pay Commission: Higher allowances from this month salary; govt employees to get maximum HRA hike of 157%

New Delhi: More than 48 lakh central government employees will start getting HRA (House Rent Allowance) hike in range of 106 percent to 157 percent from this month (July, 2017) salaries as the Union Cabinet chaired by the Prime Minister Narendra Modi on last Wednesday approved the recommendations of the 7th CPC on allowances with some modifications.

While approving the recommendations of the 7th CPC on 29th June, 2016, the Cabinet had decided to set up the Committee on Allowances (CoA) in view of substantial changes in the existing provisions and a number of representations received.

7th Pay Commission on allowances: Where govt employees will get maximum HRA- check out city-wise

The modifications are based on suggestions made by the CoA in its Report submitted to Finance Minister on 27th April, 2017 and the Empowered Committee of Secretaries set up to screen the recommendations of 7th CPC.

“HRA is currently paid @ 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities. 7th CPC has recommended reduction in the existing rates to 24 percent for X, 16 percent for Y and 8 percent for Z category of cities,” the government said in a statement 

Population of city			DA above
	Present	Proposed	50%	100%
Above 50 lakh (Class X)	30%	24%	27%	30%
5 lakh to 50 lakh (Class Y)	20%	16%	18%	20%
Below 5 lakh (class Z)	10%	8%	9%	10%

“As the HRA at the reduced rates may not be sufficient for employees falling in lower pay bracket, it has been decided that HRA shall not be less than Rs 5,400, Rs 3,600 and Rs 1,800 for X, Y and Z category of cities respectively. This floor rate has been calculated @ 30%, 20% and 10% of the minimum pay of Rs 18,000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3,” it added.

“7th CPC had also recommended that HRA rates will be revised upwards in two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and 10% when DA crosses 100%. Keeping in view the current inflation trends, the Government has decided that these rates will be revised upwards when DA crosses 25% and 50% respectively. This will benefit all employees who do not reside in government accommodation and get HRA,” it said. 

Net impact on HRA

As the Cabinet has accepted the recommendations of A K Mathur-led 7th Pay Commission on allowances so the HRA component of central government employees will increase ranging between 122 percent and 157 percent.

Take, for instance, a central government employee at the very bottom of the pay scale, where the basic pay (pay of pay band + grade pay) is now Rs 7,000, would currently be entitled to an HRA of Rs 2,100 in a Class X city. As per 7th Pay Commission, the new entry level pay at this level is Rs 18,000 per month against which the new HRA for a Class X city would be Rs 5,400 per month, that is 157 percent more than the existing level.

Similarly, at the highest level of the pay scale, the Cabinet Secretary and officers of the same rank have a basic pay of Rs 90,000, which means they are entitled to current HRA of Rs 27,000 in Class X towns. After the revised pay scale, the new basic pay is Rs 2.5 lakh, for which the HRA would be Rs 60,000, meaning a hike of 122 percent.

Existing Basic Pay (6 th) CPC	HRA (6 th CPC )			Entry Pay as per 7 th CPC	Revised HRA as per 7 th CPC (after Cabinet approval)
	Class X	Class Y	Class Z		Class X	Class Y	Class Z
7000	2100	1400	700	18000	5400	3600		1800
13500	4050	2700	1350	35400	8496	5664		2832
21000	6300	4200	2100	56100	13464	8976		4488
46100	13830	9220	4610	118500	28440	18960		9480
90000	27000	18000	9000	250000	60000	40000		20000

Existing Basic Pay

As far as other allowances are concerned, the Union Cabinet has decided not to abolish 12 of the 53 allowances which were recommended to be abolished by the 7th CPC.

“The decision to retain these allowances has been taken keeping in view the specific functional requirements of Railways, Posts and Scientific Departments such as Space and Atomic Energy. It has also been decided that 3 of the 37 allowances recommended to be subsumed by the 7th CPC will continue as separate identities. This has been done on account of the unique nature of these allowances,” as per the govt statement.

“The rates of these allowances have also been enhanced as per the formula adopted by the 7th CPC. This will benefit over one lakh employees belonging to specific categories in Railways, Posts, Defence and Scientific Departments,” it said.

Clarification In Respect Of Encashment Of Earned Leave To Re - Employed Pensioners – DoPT

Clarification in respect of encashment of Earned Leave to reemployed pensioners – DoPT

No.14028/1/2017-Estt(L)

Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Personnel & Training

Old JNU Campus, New Delhi 110 067
Dated: 27.06.2017

OFFICE MEMORANDUM

Subject:- Clarification in respect of encashment of Earned Leave to reemployed pensioners- Reg.

This Department has been receiving several references requesting for clarification relating to CCS (Leave) Rules, 1972 regarding eligibility for leave encashment to Government servants who are re-employed after retirement.

2. In this regard, it is clarified that persons re-employed after retirement may be governed by rule 39(6)(a)(iii) of the said Rules and they may be granted leave encashment up to a maximum of 300 days including the period for which encashment was allowed at the time of retirement. The cases already decided otherwise in consultation with this Department need not be reopened.

3. This issues with the approval of JS(E).

sd/-

(Navneet Misra)

Under Secretary to the Government of India

Original Order

Authority: www.dopt.gov.in

Instructions On Booking Of Tickets From An Agency Other Than The Authorized Travel Agents

Instructions on booking of tickets from an agency other than the authorized Travel agents

Controller General of Defence Accounts
Ulan Batar Raod, Palam, Delhi Cantt-110010

IMPORTANT CIRCULAR

No.AN/XIV/14162/TA/DA/LTC/Devaition/Vol-V

Dated : 27/06/2017

To
All PCsDA/CsDA/PCDA/CFA/PIFA/SFA

Sub: Instructions on booking of tickets from an agency other than the authorized Travel agents

Attention is invited to references received from various controllers on the above subject. In this connection, please refer to Ministry of Finance, Deptt of Expenditure 0M No.19024/1/2009-E-IV dated 16.09.2010 reiterating guidelines on Air Travel on TOUR/LTC circulated vide this HQrs office circular bearing No.AN/XIV/VIth CPC/Circu1ar/Vol-IV dated 16/09/2010 and No.AN/XIV/14162/TA/DA/LTC dated 24.08.2011 & dated 23.01.2012, wherein it was requested to give wide publicity to the guidelines issued by the Ministry of Finance, Deptt of Expenditure concerning air travel and booking of air tickets only from authorized travel agents by Officers/Staff of the Defence Accounts Department.

2. Inspite of repeated instructions/important circulars is sued by this HQrs office on the above matter, some cases are still being received in this HQrs offce for clarification/relaxation on admissibility of TA/DA/LTC claims, on journeys performed by Air India/Private airlines by officers on Tour/LTC by purchasing air tickets through private travel agent i.e other than authorized travel agents viz. M/S Balmer Lawrie & Company, M/S Ashok Travels and Tours, IRCTC in violation of the guidelines laid down in Ministry of Finance, Deptt of Expenditure; 0M dated 16/09/2010 and also instruction issued on 09.07.2013 and 19.06.2014.

3. This has been viewed very seriously by the Competent Authority and once reiterated that in terms of the provisions contained in MOF, Deptt of Expenditure 0M dated 16/09/2010 and dated 09.07.2013 & 19.06.2014, air tickets may be purchased directly from authorized Airlines (at Booking Counters/ Website of Airlines) or by utilizing the services of authorized Travel Agents viz M/S Balmer Lawrie & Company, M/s Ashok Travels and Tours & IRCTC.

4. The contents of this important circular may please be given wide publicity and brought to the notice of all concerned serving under your office/organization. It is further directed that all cases of air travel where the guidelines issued by MoF, Deptt of Expenditure have not been followed, are to be disallowed at your end without any reference being made to this HQrs Office.

5. Please acknowledge receipt.

sd/-

(Kavita Garg)

Sr.Dy.CGGA

Authority: http://cgda.nic.in/adm/circular/AN-XIV-LTC040717.pdf