SCOVA meeting on 29 Sept

27th meeting of  Standing Committee of Voluntary Agencies (SCOVA) under the Chairmanship of Hon’ble MOS(PP) is scheduled on 29th September, 2015, Tuesday, at  11.00 AM.  Venue not announced. 

OROP - 77th day of protest

No solution yet ! And not anything visible too !!
The Hindu carries an Editorial today. Here it is.

It seems , no editorial can bring a solace to the ExServicemen.

Pre-2006 retirees - Revised Pension

Here is a table of  "Revised Pension / Family pension " for Pre-2006 pensioners of various grades/pay scales. Ref : OM No. 38/37/08-P&PW(A) dated 30-07-2015.
This is the LATEST applicable pensions  are is applicable with effect from 1-1-2006,  The revised PPOs and arrears (to those applicable) will be coming.

Good news from ISRO

Lets all be happy with the good news from ISRO.  Though not  directly to us, we are concerned about the developments !

Here is the news (as taken from The Hindu).

Achaa din may never aayega

OROP- The fight  -- Government Vs ExServicemen -- is going on !  ExServicemen (read Senior Citizens )  are planning to enter an "Awareness campaign " in the States due for election.

What does this men to us ?  "Buraa din ahead "  and "Achaa din may never aayega ".

Congratulations Naughty Boy ! Congratulations ISRO !!

"The naughty boy is now tamed.  He is the most adored boy now ! And that's the Onam gift to the Nation"

This is what an official said in his breif speech over Doordarshan, after the successful launch of GSLV-D6 yesterday.

ISROfef  congratulates all at ISRO for doing this great job !  And ISROfef  is too happy that atleast one from the teamISRO acknowledged the contributions of the former ISROites.  Thank you Umamaheswaran  !!

Let me quote the graphic and report in The Hindu today.

7CPC - Report will be delayed

Here is the latest news !

Tenure of 7CPC extended for four more months 

– Union Cabinet approved the extension of tenure of 7CPC up to 31.12.2015.

The issue of OROP also is being referred to 7CPC.

OROP - Missing the bigger picture

Please read the full article appeared in TheHindu today.

News of the day

While OROP protests mount, here are the main news of the day !

O R O P  likely on 28th August – NDTV report indicates announcement regarding OROP on 50th anniversary of 1965 war with Pakistan

7th Pay Commission will submit the report by the end of September as reported by 7th CPC Chairman Mr. A.K.Mathur to PTI

The Seventh Pay Commission set up by the government to revise remuneration of about 48 lakh central government employees and 55 lakh pensioners will submit its report next month, said its chairman Justice A K Mathur.

The Union Cabinet, according to sources, is expected to extend the term of theCommission by two months until 31 October at its meeting on Wednesday. The term of the Commission ends this month.

Onam Greetings

ISROfef wishes all ISRO retirees and associates a 

VERY HAPPY ONAM 

And with a reminder !

7CPC - report by Sept 20

7th Pay Commission may be submitted in Second Week of September 2015

7th Pay Commission may recommend for Permanent Pay Panel

A permanent body for reviewing Pay and Allowances of Central Government Employees will facilitate regular examination of pay related issues so that constitution of pay commission once in ten years will not be necessary.

The Seventh Pay Commission is likely to recommend the government to form a permanent pay panel to give recommendations to the government from time to time on issues pertaining to pay structure of central government employees.

The permanent pay panel would recommend regular salary hikes in keeping with the rate of inflation. The formation of the permanent pay panel would help raise the salaries and allowances of centralgovernment officials and employees

The recommendations of the Seventh Pay Commission, is likely to be implemented in April, next year.

7CPC report is likely to be submitted in Second Week of September 2015.

7CPC also indicates :

- abolition Grady Pay System

- introduction of 15 new pay scales

- expected to double the salaries 

7CPC Report is to be submitted to the central government in the second week of September. The new pay scales will be implemented January 1, 2016.

The pay will include pay in the pay scale plus the applicable Dearness Allowance. Based on this pay, allowances such as HRA and transportation allowance will be determined.

As per the 6th Pay Commission, presently in force, the employees get the full benefit of retirement after completion of 33 years of service. After retirement, they get gratuity to the extent of 16 1/2 months of pay. The retirement policy and benefits are expected to be the same in the 7CPC also.

Read the full news in gconnect.in

Reminder ! Filing your IT Return

Reminder !

Last date for filing your Income Tax Returns is 31st August.

Just 7 days left.  Act now, if not you have already filed.

Playing politics

Will the presence of the daughter of a Minister ( a retired General ) at the fasting venue make any change in the OROP issue ?

Must be a time-pass for the ExService men at the venue ! Can't hope any better ! Afterall, its all politics !

Why OROP issue is difficult to deal with ?

A very interesting article in gconnect.in

Click below to read !

Why OROP issue is difficult to deal with ? – Livemint Article discusses the complexity of one rank OROP issue and the need for gradually moving to Contributory Pension Fund system

Expected Pension wef 1-1-2016, for Pre-2006 Retirees in PB4

(Tables for other PayBands can be given, on demand )

Expected Pension wef 1-1-2016,  for  Pre-2006 Retirees in PB4
Grade 6 CPC - Pay Scale Grade Pay Pension by 6 CPC  Revised Pension wef 1-1-2006  @@ with  DA 125% merged (X 2.25 ) with 125% DA and 15 % additional ( X 2.4 ) with 125% DA and 25 % additional ( X 2.5 ) S 24 37400 - 67000 8700 23050 23050 51863 55320 57625 S 25 37400 - 67000 8700 23050 24195 54439 58068 60488 S 26 37400 - 67000 8900 23150 24295 54664 58308 60738 S 27 37400 - 67000 8900 23150 24295 54664 58308 60738 S 28 37400 - 67000 10000 23700 23700 53325 56880 59250 S 29 37400 - 67000 10000 23700 27350 61538 65640 68375 @@  Implemented wr to OM No. 38/37/08-P&PW(A)  dtd 30-7-2015 Note :   For  "Full Parity  in   Pension", if approved later (a dream now ! ),  the pension will improve/modified  corresponding to your length of service in the grade from which you have retired.

Bank Unions joining Sept 2 strike

All major Bank Unions are joining the STRIKE on Sept 2.

How to loot public money

The graphic shown above (from TheHindu) gives highlights of the latest example of looting the National exchequer.

1.65 Lakh Crores !  That's being given to Bihar !  That too for votes in return !
More than a tenth of all tax collections !
More than a fourth of total national plan expenditure !

This is a day-light robbery !!

Listen dear friends, this happens when the Minister says that employees and pensioners are eating away a lot !

GSLV-D6

Best Wishes to

G S L V - D 6

due for launch on 27th August

Update on OROP

Senior ExService men are on fast !
Defense Minister is expected to meet the Prime Minister on 23/24 August. He requested the veterans to postpone their fast until 24th.
Let's watch what happens .

A bit of history

Here is a news item appeared in the newspaper on 19 th August, 1965 (from TheHindu )

Read the report ..

Merge Basic + DA only ?

The grapevine quotes a 7CPC official as  saying :

 “Merge the basic with dearness allowance, don’t stretch it beyond—that is the message. But that is a good message for the government to send. But there is no pressure otherwise. In fact, there is a lot of cooperation,” he said.

Source : gconnect.in

So, Estimated Pay scales ?  Take it with a pinch of salt !

7CPC- Estimated pay scales

GConnect.in   had estimated the pay scales as on 1-1-2016 (based on certain assumptions.


Click below to know !

Estimated 7CPC pay scales based on the methods adopted in 6CPC pay revision 

Estimation of 7th CPC Pay in pay band and Grade Pay as on01.01.2016.

7CPC Report by end Sept 2015

7CPC seeks one month extension for submitting its recommendations
Report likely to be submitted before end of September 2015

gconnect.in

Railway Employees demand OROP

Railway Employees demand One Rank One Pension .

7CPC seems to be not inclined to grant OROP

While the Seventh Pay Commission, in its internal deliberations, is understood to have not taken a favourable view of the OROP because of the financial implications, any formal examination of the same will have to depend on the government’s position on the issue. The government is now expected to set up a committee on the issue.

(   Taken from gconnect.in   )

OROP Vs FULL PARITY

OROP    vs   FULL PARITY

One Rank One Pension  means "uniform pension to be paid to the Armed Forces personnel retiring in the same rank with same length of service , irrespective of their date of retirement. "

This is an accepted definition of OROP  by the Judiciary and Parliament.

When it comes to the Central Govt employees, why should this principle change ? 
FULL PARITY , therefore should mean :

"uniform pension to be paid to the Government employees retiring in the same grade with same length of service , irrespective of their date of retirement "

Let's hope all Associations of Retired employees takeup the issue with more vigour , immediately.

OROP - Fight intensified

People who fought for our Nation's security and freedom are now fighting for justice.

Former Service Chiefs wrote to PM. Many newspapers wrote editorials. But finance minister is still stubborn ! Excuse quoted is "technical difficulties".  But,  for the Exservicemen, its very clear .

OROP - Ex-service-men let down

Ex-Service men starts HUNGER STRIKE.

And the question arises . Why do the Government continue to let down the Ex-servicemen ?

OROP - Last hope too recedes

There was an expectation among Defense pensioners that the much awaited OROP will be announced  by the PM in is Independence Day speech.  But , leaving no doubts, the DM (Mr.Parrikar) yesterday clearly told that it's not coming in the near future. He threw the carrot away to another 4 more years. He said, the OROP implementation will be done before the term (4 years more).  That's a clear message "OROP may not atall coming " !
The DM said " there are some "technical difficulties" that needed to  be addressed". He also quoted the "huge financial burden" for this.

So, That's it !

That tells us, Central pensioners, that  never ever hope for the "FullParity "  !! ???

Pre-2006 - Pension calculator

All those Pre-2006 pensioners who are benefited by the recent Govt order may make use of the Pension and Arrears calculator (gconnect.in). Please click link below.

Pre-2006 Pension Arrears Calculator for Pension Arrears from January 2006

Good and Bad news on 7CPC

The latest on 7CPC is the comments from  the Finance Minister.
The paper report says that 7CPC will be presenting their report by next month end, recommending a salary hike of 15 %. That would cost an additional salary outgo of 15.79 % in the next Fin Year.

But how did the FM  decide that the recommended increase is 15% ? Its now very clear that the recommendations of 7CPC are orchestrated by the FM (and Government). 

He also says that the 7CPC award would pose a risk on the exchequer.  How and why does he say it is a risk ?  Was it not a known parameter ? Is it not something which should be and should have been planned ?  Does he mean that this risk means a wasteful expenditure for the Govt ?

Dear FM, can you avoid the risk by not increasing the wages and pensions?  When every worker in this country  gets increase in their wages and other benefits,  how can the Govt employee survive without an increase ?
Today, an average semi-skilled worker in Kerala gets over 1000/- a day as wages. That is about 25000+ per month . The Govt should be a model employer in every respect.

When you know that you have to pay wages , you have to find sources of its income. That's very basic.  Don't say that the wages paid to the employees are a burden on the Nation.


News from GConnect.in

FM speaks on Implementation of 7th Pay Commission report in Parliament and tables Medium Term Expenditure Frame Work Statement – Central Government Employees Salary Expenditure to cross Rs. 1 lakh Crore.

And the full report from TheHindu follows.

Anyway, the news is good ! The Govt is preparing for the implementation. But what and how much is still unknown.  A fact remains highlighted ... 7CPC and its positive implementation is very risky in the hands of our FM.

Positives of Salary/Pension hike

7th Pay Commission and Country’s Economic Growth – More reports by analysts co-relating 7th central pay commission and consumption driven growth

Pay Commissions, which are regularly constituted to review salaries of Central government employees, give a fillip to the Indian economy, according to analysts.

The sixth Pay Commission partly offset the after-effects of the 2008 Lehman crisis on India because of the 35% increase recommended.

The implementation of the hike boosted two-wheeler and car sales and increased demand in the cement sector, according to global brokerage firm Bank of America Merrill Lynch.

Pay packages of government employees rose by an average of 35% as per the recommendations of 6th Pay Commission. They also received arrears of more than 30 months due to delay in the implementation.

“The arrears resulted in robust demand for consumer discretionary products that resulted in sustained stock performance over 3-5 years,” Jai Shankar, chief India economist of Religare, told NDTV Profit.

Due to this co-relation between Pay Commissions and economic growth, many analysts are eagerly awaiting the 7th Pay Commission report.

The 7th Pay Commission was appointed in February last year by the outgoing Congress-led UPA government, is likely to submit its recommendations by August-end or latest by October. The recommendations are likely to be implemented by the Central government next year.

About 50 lakh central government employees (including 15 lakh defence personnel) and more than one crore state and local government employees will gain from the recommendations to be made by 7th Pay Commission, according to Religare.

Besides, it will also result in an upward revision of pension for about 30 lakh retired Central government employees.

While there is no consensus on the amount of salary hike likely to be recommended by the 7th Pay Commission, analyst expects it to be in the range of 15 to 40%.

While Bank of America estimates the salary raise to be at 15%, Religare puts it at 28 to 30%. Credit Suisse expects a salary hike of 40%.

Economists see the 7th Pay Commission as improving the economic activity in the country by increasing consumption.

“The most important factor is economic activity itself which is gaining pace and, together with greater employment generation and policy reform, the 7th Pay Commission salary hike may help India enter a larger virtuous cycle,” said Religare.

“A 15 per cent salary increase would push up the central government’s salary bill by Rs 25,000 crore (or $4 billion), which is 0.2 per cent of India’s GDP. This will help in a consumption-driven recovery in the domestic economy,” said Indranil Sen Gupta of Bank of America Merrill Lynch.

(from Gconnect.in )

7CPC - Grapevine

Some news from grapevine !


7CPC report will be submitted on or before  14th August 2015.

1. There will be no running Pay band and Grade Pay System
2. The uniform multiplication factor for arriving revised pay will be 2.86
3. The Pay scales will be open ended to avoid stagnation in the scales
4. The Minimum Pay will be Rs. 21000
5. The CCA will be separated into two components as it was in the fifth CPC
6. Percentage of HRA will remain same.
7. The Criteria for retirement age will be either completion of 33 Years of service or at the age of 60 Years whichever is earlier.
8. CGEGIS Insurance Coverage and Monthly premium will be increased
9. Classification of Posts will be Modified
10. The 7th Pay Commission recommendation will be implemented with effect from 1.1.2016.

Following submission of report,  Government is expected to appoint a Committee of Secretaries to study various aspects of implementation.

You may try the site :   7CPC News 

7 CPC pay to boost Economy

A very interesting article !  from GConnect

The two sides of 7th Pay Commission on its implementation 
– Positive side is 7th CPC would be a boost to Economy and
- Negative side is, it may invite inflation and fiscal pressure

Here is the extract of this article
The 6th Pay Commission played a key role in insulating the Indian economy from the shocks of the Lehman crisis of 2008. According to Bank of America Merrill Lynch, higher salaries – resulting from the implementation of the 6th Pay Commission – drove two-wheeler and car sales, and led to a recovery in cement demand.

Salaries of government employees went up by an average of 35 per cent on the back of the 6th Pay Commission recommendations; employees also got arrears for more than 30 months because of the delayed implementation of the 6th Pay Commission in October 2008.

“The arrears resulted in robust demand for consumer discretionary products that resulted in sustained stock performance over 3-5 years,” wrote Jai Shankar, chief India economist of Religare.

It is for these economic linkages that the 7th Pay Commission report is being eyed by analysts. The 7th PayCommission report is likely to be submitted by August-end or in October, according to media reports.

Pay Commissions are meant to review the salary structure of central government employees and are set up every 10 years. The 7th Pay Commission will revise salaries effective January 1, 2016.

According to Religare, nearly 50 lakh central government employees (including 15 lakh defence personnel) and over 1 crore state and local government employees will benefit from the 7th Pay Commission.

There’s no consensus about how much salaries will go up — Bank of America expects a modest 15 per cent increase, while Religare expects salaries to go up by 28-30 per cent. Credit Suisse says salary hikes can be as high as 40 per cent.

Economists, however, agree that the 7th Pay Commission will help kick-start the domestic economy, which continues to be plagued by weak demand and excess capacity.

How the 7th Pay Commission can fire up the Indian economy?

1) A 15 per cent salary increase would push up the central government’s salary bill by Rs 25,000 crore (or $4 billion), which is 0.2 per cent of India’s GDP, says Indranil Sen Gupta of Bank of America Merrill Lynch. This will help in a consumption-driven recovery in the domestic economy, he added.

2) According to Neelkanth Mishra of Credit Suisse, nearly one-third of India’s middle class is employed by the government and as the 7th Pay Commission comes through, there will be an improvement in discretionary spending.

“In Tier 3, Tier 4 towns where government employees are 50-60 per cent of the middle class, it is very likely that real estate markets will take off again,” he said.

3) Bank of America Merrill Lynch also expects the 7th Pay Commission to double subsidized loans for cars to Rs 3.60 lakh and housing loans to Rs 15 lakh. This will push up demand for autos and housing.

4) According to Religare, “The most important factor is economic activity itself which is gaining pace and, together with greater employment generation and policy reform, the 7th Pay Commission salary hike may help India enter a larger virtuous cycle.”

Large-scale salary hikes, however, are also expected to stoke inflation and fiscal pressures.

“Clearly if you see a third or 35 per cent of your middle class getting a 40 per cent or 30 per cent jump in compensation in one shot, the fears of inflation will rise,” Mr Mishra warned. He added that expectations of rate cuts can get pushed out and some possible fiscal pressures can emerge.

According to Jai Shankar of Religare, the salary bill (centre plus state combined) will be much higher at $50 billion or Rs 3.12 lakh crore if the Pay Commission recommend a 28-30 per cent salary hike. “The total amount will be in excess of $50 billion, making deficit reduction extremely challenging in FY17,” he said.

From gconnect.in