New Year Greetings നവ വത്സരാശംസകൾ

ISROfef  wishes all  its  visitors, a

Very Happy and Prosperous New Year

ISROfef wish you a healthy wealthy and  peaceful year ahead

എല്ലാവര്ക്കും   നവ വത്സരാശംസകൾ 

54 to 50

I hope the readers would recollect that ISROfef  hinted at the large order difference in Pay (and so Pension) between the PB3 and PB4 bands in the 6CPC recommendations and implementation.

The point was mainly regarding the  difference between SE (in PB3) and SF (in PB4)  scales.  Such large difference doesnot exist  between other succeeding scales. Accordingly, suggestions were given to 7CPC to rectify this, by improving on SE scale. Infact, they considered it and attempted to smooth out the large difference, by using a  higher Multiplication factor.  ie. 2.67 against 2.57 ( Refer 7CPC- PayMatrix).

In 6CPC,  SF (PB4)  pay was  54 % more than  SE (PB3) pay.  Therefore,  Pensions too !

In 7CPC, this difference is brought down to  50 % !!

Merry Christmas

ISROfef 

wishes all associates and visitors 

a very Happy Christmas

Dil Maange More

“I wish I Could Make Everyone Happy – Everyone wanted a huge hike. ...... "

“It’s Dil Maange More for everyone in the government, We can’t give everything to everyone. If we conceded, the government of India will go bankrupt. Even then, if our recommendations are accepted as they are, the government will need Rs.1,02,100 crore. That’s a huge burden.”

These are the words of  Justice AK Mathur, 7CPC Chairman, during a recent interview.

Would you like to say something here ???

From Fishing Hamlet to Red Planet

This precious book is a must for every ISRO Engineer's collection.

You may have the free e-book. But a hard-copy is always very precious and will boost your prestige as an ISROite.  Your grand-children will thank you for your smart decision .


Harper Collins is now ready with the print and for distribution of this Book. It's available from Amazon  at a  25 % discount.

Please order your copy right now !  Click here to order. 

From Fishing Hamlet to Red Planet

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• M.R.P.:    999.00
• You Save:    250.00 (25%)
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Cash on Delivery eligible.

This title will be released around December 30, 2015. 
Pre-order now.

SpaceX's Falcon 9 - The challenge

Today's report on  SpaceX's Falcon 9  should inspire ISRO, on every count.
Its great ! It's marvellous !!

I hope ISRO must be watching these technological jumps.   Please read a report from "BusinessLine".

The oily thing - Crude and 7CPC

If you wonder what Crude oil is to do with 7CPC and OROP, don't get confused anymore. This "BusinessLine " report clearly tells you how the Government is looking at Crude oil prices before thinking on the proposed 7CPC implementation.

Let's all wish and pray , the crude trades below 50 $ for the next couple of years. It's 36.05 $ today !! That's too good indeed !  But, its oil.... always slippery !!

Cooling off period for retirees halved to one year

The cooling off period for bureaucrats seeking commercial employment after their retirement has been cut to ONE year, from the current TWO years.
Read on the full "BusinessLine " report today.

Law for Senior Citizens not being implementd

Kerala State, who have the highest percentage of elderly in our country,  have framed rules and notified the "Maintenance and Welfare of  Parents and Senior Citizens Act, 2007. But it's not being implemented effectively. For various reasons !

Kindly read  "TheHindu" report, and judge yourself how miserable is the life of Seniors, particularly the economically downtrodden.

Pensioners Day

Today is Pensioners' Day !

Today is 17 December !!

Congrats ISRO

ISROfef congratulates ISRO 

on the occasion of the successful launch of 

PSLV - C29

and accomplishing all the flight objectives

Delay tactics strengthen

Several States like West Bengal, Odisha , TamilNadu, AP, and UP, among others, have written to the Prime Minister, Cabinet Secretary and Finance Ministry to delay implementation of the 7CPC recommendations.

They sought more time to assess implications on their finances of implementing the 23.5 per cent (??)  hike in pay and pension for their employees in sync with the  7CPC recommendations for the central government staff.

7CPC Report is Detrimental to Central Government Employees

7CPC Report  is Detrimental to Central Government Employees – says Mr.Ajay Maken, Former Union Minister from Congress Party. He observes that 7CPC recommendations are not beneficial to low paid employees and tilted towards higher level officers.

Booster - 7CPC boosts the economy

What it does not boost ?  Nothing  !

It boosts everything ! This is about 7CPC !!

7CPC implementation will boost everything. From StockMarket to some people's envy !!

That's what CREDIT SUISSE says now. They have its reasons to prove.  I don't write any more. Its upto you to read this BusinessLine report.

7CPC - Increase in salary is 14.2 % and some loses !

7CPC – The whole of the media was & is busy in publishing as the increase in salary as 23.55%. However, the real calculation puts it to 14.29%.

The recommended pay hike for the Central staff by the 7CPC, though widely criticized by the employees have received a contrasting response by the media. Many of the media reports described it as a Bonanza for the Government employees without going into the facts or without any basic knowledge regarding the crucial calculations.

The whole of the media was & is busy in publishing as the increase in salary as 23.55%. However, the real calculation puts it to 14.29%. There is a vast difference in minimum pay between the 7CPC and its predecessor panel. However, none of the media reports reveal it.

The media is unaware of the shocking fact that once the 7CPC  comes into effect from January 1, 2016, many of the government servants will actually be taking home lower salary than what they are currently drawing under the 6CPC ! This would be primarily because of increase in deductions like CentralGovernment Employees Group Insurance Scheme and NPS.

As per the 7CPC  report, close to 88% of all the employees is Group C while only 3% is Group A and 9% from Group B. Now let us see how the 88% percent of the Central Government Employees have been deceived by the 7CPC.

Let us take an example of a Group C employee appointed in GP Rs.1800 on 1st August 2015, and let us assume he has been provided a government quarter.

What he would be drawing before the implementation of 7CPC ?

His basic Pay : Rs.5200 – 20200 + GP Rs.1800/- = Rs.7000/-
Add DA 125% = Rs.8750/-
HRA = NIL (Availed Government quarter)
TA = Rs.600 + DA = Rs.1350/-
Total Gross Income = Rs.17,100/-

Deductions :-

NPS 10% of basic Pay  =  Rs.700/-
CGEGIS   =  Rs.30/-
Total Deduction ; Rs.730/- (700 + 30)

Net Pay – Rs.17100 – RS.730  = Rs.16370/-

What he would be drawing after the implementation of 7CPC?

Minimum Basic Pay  = Rs.18,000/-
HRA = NIL (Availed Government quarter)
DA = NIL
TA = Rs.1350/-

Total Gross Income = Rs.19,350/-

Deductions :-

NPS = Rs.1800/-
CGEGIS = Rs.1500/-
Total Deduction ; Rs.3300/- (1800 + 1500)

Net Pay – Rs.19350 – Rs.3300 = Rs.16050/-

Now Calculate, he was earning Rs.16,370/- before the implementation of the 7CPC. However, after the implementation of the 7CPC in its present form, he will start earning Rs.16,050/-. What Bonanza he gets ?

He loses Rs.320/- ; do you call this a pay hike?

{ from GConnect.in  }

7CPC News

7CPC – Armed Forces Raise Concerns

Officers say that if the Pay Commission is implemented in the present form, it will position them much below their civilian counterparts in terms of salaries, facilities and status.

7CPC report on determination of minimum pay.

7CPC fixed the Minimum Pay at Rs.18000/- as per Indian Labor Conference recommendations considering 3 units of a family of 2 + 2. The amount was arrived by the prices sourced from Labor Bureau, Shimla. 7CPC claims that this amount is more than twice than that of a private sector employee.

7CPC - Fitment Formula Spoiled – Recommendations are Detrimental to Large Section

When we go through the recommendations of the 7CPC report, it appears that it is anti to low paid employees and failed to improve their financial conditions.

7CPC – Centre to Cushion Pay Panel Impact – Implementation Likely by Mid-2016

The financial burden of the 7CPC recommendations is large but the Govt has planned to cushion its impact by opting for its implementation in stages and not at one go.  The strategy involves pushing back the date of implementation of the pay commission award so that the government saves on payment of allowances.

From GConnect.in

Indefinite strike from 1st March 2016

If negotiated settlement on 7CPC related issues has not reached by 1st week of Feb 2016, Central Government Employees including Railway Employees and Defence Civilian Employees will go on indefinite strike from 1st March 2016

What the Economists say

These days, as you might ave read, comments/views of  Economists on 7CPC recommendations have come  through the media.  Here I have a couple of them (Ref : BusinessLine)

Thomas Bookmaaker, Director of Fitch ratings Asia Pacific , in an interview, expressed his views on Indian Economy, our Finances, and also on the implications of 7CPC implementation. He suggests how the Govt should plan the spending to meet the higher wage bills.  He says, "one of the options for the Govt to meet the hiked wages is to extend the FRBM ( Fiscal Responsibility and Budget Management )  target by a year."

Tushar Poddar, of Goldman Sachs, in an interview says that GST is key to pick-up in Indian economy. He also says : " If the Govt wants to implement the 7CPC rcommendations, then the path of fiscal consolidation that it has outlined in the FY16-17 budget is not going to be easy."

7CPC report may not be taxing

Here is a BusinessLine report, quoting Fin Ministry, on the financial aspects of implementing the 7CPC recommendations.
This confirms that the 7CPC implementation will not be a huge burden on the Govt finances, as the media have been trumpeting.
Please read on ......

7CPC – Pensioners to Gain the Most !

Financial Express wrote an article saying that :

7CPC – Pensioners to Gain the Most – While the 7th Pay Commission pay scale increase of serving employees is 16%, pensioners will see a 23.63% rise.

7th Pay Commission on pay and pension: Once the recommendations of the 7CPC are implemented, the biggest gainers will be pensioners. While the 7CPC pay increase of serving employees is 16%, pensioners will see a 23.63% rise. However, the big gain per se is in allowances, which rise by as much as 63%. Here is an elaboration of the 7th Pay Commission pension recommendations:

This report, does not qualify on any account. It lacks sense. I wish the reporter could have studied the true facts and figures well, before writing such invalid comments.

OROP - Mediator

Union minister and former Army Chief, General (Retd) V K Singh is mediating between the protesting ex-servicemen and the defence ministry to resolve the differences on OROP issue. Singh’s name as the mediator was agreed upon at a meeting between the veterans and Defence Minister Manohar Parrikar last Tuesday. 

FM not worried

Finance Minister Sri. Arun Jaitley today said he was not worried about fiscal deficit and Government would be able to meet its target despite additional outgo towards the implementation of the 7CPC.

He admitted however that the impact of implementing the pay commission’s recommendations, which will result in an additional annual burden of Rs 1.02 lakh crore on exchequer, would last for two to three years.

gConnect.in

JCM working on a memorandum on 7CPC

National Joint Council Action will meet on 8th December to discuss on a Memorandum submission to Govt, regarding  7CPC recommendations.

DA increase 7% wef 1-1-2016

Estimates based on WPI (October '15)  shows that the DA increase wef  1-1-2016  will be 7 %   (against an earlier estimate of 6 %).
Thus the total DA will be 126 % (against 125 %, estimated earlier )

OROP - ExServicemen to take Legal route

Govt's attitudes to OROP   and the 7CPC recommendations ! Both are making heart-burn for the Exservicemen. They are approaching the Court , through the Lawyer Ram Jethmalani.

7CPC and RBI

The fifth bi-monthly Monitory-Policy review by RBI yesterday did not change any key rates. But that's not the interesting point here.  RBI Governor stated the following, as related to 7CPC recommendations .


Pay Commissions proposals impact ; Outgo likely to be offset by budgetory tightening.

On the 7CPC, in the broad sense, there is going to be additional expenditure but it will be offset , presumably, by either additional revenue raising or cuts elsewhere so that the fiscal consolidation path is maintained. so, in that sense, we don't feel there will be a significant effect on aggregate demand provided , ofcourse, you maintain the fiscal path. .....   And I think the Govt has taken a number of these factors into account while anticipating the consequences of the Pay Commission proposals.



The message  :  7CPC implementation  is not a problem. Heavens are not going to fall if 7CPC recommendations are implemented.

7CPC Report -- Implementation

An Empowered Committee is being formed to seek views and suggestions for implementing 7CPC Report from all Central Govt Departments and JCM..

Why the Govt must hire more, and Pay more ?

TheHindu, today carries an article titled "Why Govt must hire more", authored by Sri. Nitin Pai (Director,  Takshasila Institution).

These days, we know that the Central employees and Pensioners are being cursed by the Media and public. They accuse that the Central staff and Pensioners eat away all in the National exchequer.  Thank God, there are a few economists, thinkers, and Policy specialists who say otherwise.

Last day, ISROfef quoted an article here saying that the increase in wages for the govt employees and pensioners are doing good for the economy. Though it seems a lot of money is spent, the economists proved that it does a good impact on the total economy. It drives demand, production, and further income for the Govt. And such pay increases must be well understood as the additional cost of running the Govt machinery. Thus the cycle of exchanging values takes place. That's the core behind the economic dynamism of a country. The wage revision for the large block of people who serve the rest of population thus further pushes the economic dynamism.

In today's article the author says " India should combine the pay and administrative reforms commission, reflecting a new mindset -- one that is ready to pay its public officials well, increase their numbers and invest in building competency."
He adds that " In a country , the economy and society are usually ahead of the Government, which causes a governance gap to emerge. In India , this gap is wide and growing. The only way to narrow it is by increasing the quality and quantity of public officials".

My fellowmen, .....  Are you all listening ?
My dear Mediamen, Are you noting this ?

Please..Please .. communicate this truth and wisdom to the public. please tell them that the 7CPC expenditure is essential and is GOOD for them !! Not only for Govt staff and pensioners, but also for the whole of the public.


Please read the full article (reproduced from TheHindu below) .

NPS is better

It's GOOD NEWs for the govt employees.

Yesterday,  BusinessLine  published a news /report "Govt employees make better returns in NPS".
The secret behind this better performance is EQUITY investments. If this is done efficiently, I believe the post-2004 employees would be at a better edge than others. Let's hope the best.
Please read the full report...