Economy
Highlights of 7th Pay Commission recommendations
The 7th Pay Commission on Thursday recommended a 16-percent salary hike for government servants with an estimated 47 lakh serving central government employees and 52 lakh pensioners expected to benefit from the recommendations. Following are some of the highlights:
 
. A 16-percent salary hike recommended
 
. A 24-percent hike in pension, besides a minimum pay of Rs.18,000 per month for all entry-level employees
 
. Rs.2.5 lakh for the seniormost serving officer, the cabinet secretary.
 
. Increase in pay will be 16 percent, increase in allowances will be 63 percent
 
. Annual increment of 3 percent recommended
 
. An estimated 47 lakh serving central government employees and 52 lakh pensioners will be impacted
 
. Proposals will entail an outflow of Rs.102,100 crore from the exchequer during the next fiscal
 
. One rank one pension proposal recommended for all employees, including the defence personnel, retiring before January 1 next year
 
. Rate of house rent allowance be revised to 27 percent, 18 percent and 9 percent when dearness allowance crosses 50 percent, and to 30 percent, 20 percent and 10 percent when it crosses 100 percent
 
. House building advance ceiling proposed at Rs.25 lakh against Rs.7.5 lakh.
 
. Health insurance scheme for central government employees and pensioners h
 
. Ceiling of gratuity recommended at a higher rate of Rs.20 lakh, against Rs.10 lakh. 
 
. For defence personnel, against the existing pay of Rs.6,000 per month for service officers, the proposal is for Rs.15,500. 
 
. Performance-related pay for all categories of central government employees
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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7th Pay Commission recommends OROP for civilians, armed forces
In what may result in 'One Rank One Pension' (OROP) for all, the 7th Pay Commission on Thursday recommended a revised pension formulation for employees of civil government, Central Armed Police Forces, as well as defence personnel to bring "parity between past pensioners and current retirees with same length of service", retiring before January 1 next year.
 
It, however, refrained from using the term OROP for it.
 
"The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016," an official statement said after the 7th Pay Commission submitted its recommendations to the finance ministry.
 
"This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement," it read.
 
"The past pensioners shall first be fixed in the pay matrix being recommended by the Commission on the basis of pay band and grade pay at which they retired, at the minimum of the corresponding level in the pay matrix.
 
"This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent," it said.
 
The statement further said: "In the case of defence forces personnel, this amount will include military service pay as admissible."
 
This comes after the defence ministry announced OROP for defence personnel, which was dismissed by protesting veterans.
 
Retired personnel of CAPFs also staged a protest at Jantar Mantar recently demanding OROP.
 
An agitation by veterans, who called the defence ministry's scheme 'one rank five pension' continues at Jantar Mantar in the national capital and in several other cities across the country.
 
Col. Anil Kaul (retired), spokesperson of the Indian Ex-Servicemen Movement (IESM), said the question was not of "parity" but that the armed forces must have an edge over others.
 
"Go ahead and give OROP to all... The question is not of parity, armed forces must retain its edge," Col. Kaul said.
 
"Increase the pension for armed forces to 90 percent (of last salary) for the JCOs and ORs and 70 percent to officers," the veteran said.
 
The 'Military Service Pay', which is a compensation for the various aspects of military service, was recommended to be doubled, and the panel also suggested that Short Service Commissioned Officers should be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service.
 
For a serving officer, the MSP has been recommended to be increased from present Rs.6,000 to Rs.15,500.
 
It also recommended that the allowances relating to risk and hardship shall be governed by the newly proposed nine-cell risk and hardship matrix.
 
The commission also suggested increasing current monthly Siachen allowance from present the Rs.21,000 to Rs.31,500 for service officers and Rs.21,000 from the present Rs.14,000 for JCOs and ORs.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Obama names Indian-origin Swati Dandekar as ADB director
President Barack Obama has nominated India-born Swati A. Dandekar, a Nagpur and Bombay University alum, to be United States director of the Asian Development Bank, with the rank of ambassador.
 
The nomination of Dandekar who will replace Robert M. Orr was announced by the White House along with eight other key Administration posts:
 
"I am confident that these experienced and hardworking individuals will help us tackle the important challenges facing America, and I am grateful for their service. I look forward to working with them," Obama said
 
Dandekar, who received a BS from Nagpur University and a Post-Graduate Diploma from Bombay University, is a former Iowa state legislator and member of the Iowa Utilities Board, according to her White House biography.
 
She served on the Iowa Utilities Board from 2011 to 2013. Prior to joining the Utilities Board, Dandekar served in the Iowa State Senate from 2009 to 2011 and in the Iowa State House of Representatives from 2002 to 2008. 
 
From 2000 to 2003, she was a member of the Vision Iowa Board of Directors. Dandekar also served on the Linn-Mar Community School District Board of Education from 1996 to 2002 and was a member of the Iowa Association of School Boards from 2000 to 2002. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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