HIGHLIGHTS OF "MODIFIED ASSURED CAREER PROGRESSION SCHEME” (MACPS)
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
S.No.PC-VI/110 RBE No.101 /2009
No. PC-V/2009/ACP/2 New Delhi, dated 10 .06.2009
The General Managers
All Indian Railways & PUs
(As per mailing list)
Sub: Recommendations of the Sixth Central Pay Commission – Modified Assured Career Progression Scheme (MACPS) for Railway Employees
Download MACP
1. Scheme would be known as "MODIFIED ASSURED CAREER PROGRESSION SCHEME” (MACPS) FOR THE CENTRAL GOVERNMENT CIVILIAN EMPLOYEES.
2. The Scheme comes into effect from 1.9.2008 & is in supersession of previous ACP Scheme.
3. Three financial up-gradations shall be given from the direct entry grade on completion of 10, 20 and 30 years’ service respectively.
4. Financial up-gradation will be given in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay, not as per the hierarchy available in the cadre.
5. Benefit of pay fixation available at the time of regular promotion shall also be allowed at the time of financial up-gradation under the Scheme. (3% increment plus difference in the Grade pay).
6. Promotions earned / up-gradation granted under ACP Scheme in the past to those grades which now carry the same grade pay due to merger of pay scales / up-gradations of posts recommended by the Sixth Pay Commission shall be ignored for the purpose of granting up-gradations under Modified ACPS.
7. The grade pay of Rs. 5400 in PB-2 and Rs.5400 in PB-3 shall be treated as separate grade pays for the purpose of grant of up-gradations under MACP Scheme.
8. 'Regular service' for the purposes of the MACPS shall commence from the date of joining of a post in direct entry grade on a regular basis either on direct recruitment basis or on absorption/re-employment.
a) Screening will be done for grant financial up-gradation under MACP.
b) Benchmark of 'good' would be applicable till the grade pay of Rs. 6600/- in PB-3.
c) Screening Committees shall be formed by the respective departments / Cadre Controlling authority.
d) Screening Committee will take up in first week of January the financial up-gradation cases maturing during the first-half (April- September). Similarly the Screening committee will take up in first week of July the financial up-gradation cases maturing during the second-half (October- March)
e) Cadre Controlling Authorities shall constitute the first Screening committee within a month from the date of issue of these instructions to consider the cases maturing up-to 30th June, 2009 for grant of benefits under the MACPS.
9. Financial up-gradation would be on non-functional basis subject to fitness, in the hierarchy of grade pay within the PB-1.Thereafter for up-gradation under the MACPS the benchmark of 'good' would be applicable till the grade pay of Rs. 6600/- in PB-3.
10. Illustration
1. Recruitment in Rs. 4200 GP – with no promotion for 10 years
1st Financial up-gradation after 10 years with GP - Rs. 4600.
2nd Financial up-gradation after (10+10) 20 years with GP - Rs. 4800.
3rd Financial up-gradation after (10+10+10) 30 years with GP - Rs. 5400.
11. Illustration 2. Recruitment in Rs. 4200 GP – with 1st promotion in 5 years with GP - Rs. 4600.
2nd Financial up-gradation after (5+10) 15 years with GP - Rs. 4800.
3rd Financial up-gradation after (5+10+10) 25 years with GP - Rs. 5400.
12. Illustration 3. Recruitment in Rs.4200 GP - 1st promotion in 5 years with GP - Rs. 4600.
2nd promotion after 8 years, (5+8=13 years) GP, Rs.4800.
3rd Financial up-gradation after (5+8+10) 23 years, GP, Rs.5400.
Tuesday, December 8, 2009
Wednesday, November 18, 2009
PROMOTION WITHOUT PAYHIKE
A promotion unless to a honorary posting, should fetch some monetary benefit to the employee. But it’s no so after implementation of Sixth Pay Commission report. You would get a promotion and yet you are not sure of receiving any pay hike.
I feel this disorder has been caused not because of the government orders but the wrong interpretation of the same. It is causing considerable financial loss to certain employees in the form of denial of increment at the time of promotion.
This is the Audit Observation of SRU and PAOs that causes the problem:
“As per Rule 13 of CCS Revised Pay Rules 2008, fixation will be done only in case of promotion from one grade pay to another in the revised pay structure. As such, no fixation benefit in the form of increment equal to 3% of Pay Band +Grade pay should be allowed where there is no change in grade pay due to promotion.”
The cadres affected by this wrong interpretation are :
Case 1: When Superintendents who got the grade pay of Rs.5400 as on 1.1.2006, are granted ACP to the pre-revised scale of 8000-14000 from the pre-revised scale of 7500-12000, pay fixation with 3% increment is denied to them, on the notion that it is only an ACP to the next grade that carries same grade pay.
Case 2: Administrative Officers promoted from DOS cadre, DOS from STA cadre, Inspectors from STA cadre, and Havildars promoted from Sepoys cadre have been badly affected by this wrong interpretation.
Case 3: A Deputy Office Superintendent after completion of service of more than 18 years, which includes the service of a decade or more in the junior cadres like TA/STA/UDC/LDC etc, is promoted now as AO and transferred from one end to the other end of the State. Do you how much his pay hike will be for this promotion? A Big Zero !
Case 4 : So is the case of a Senior Tax Assistant who has been promoted as Deputy Office Superintendent and under the orders of transfer from one end to the other end of the State without any change in his pay as a result of the promotion.
A close look at Rule 13 of CCS Revised Pay Rules 2008, that provides the procedure for fixation on promotion after 01/01/2006 could throw some light on this issue.
“ 13.fixation of pay on promotion on or after 1.1.2006- in the case of promotion from one grade pay to another in revised pay structure, the fixation will be done sa follows:-
(i) one increment equal to 3% of the sum of the pay in the pay band and the existing grade pay will be computed and rounded off to the next multiple of 10.This will be added to the existing pay in the pay band. The grade pay corresponding to the promotion post will thereafter be granted in addition to this pay in the pay band. …”
The portion where the audit team got stranded was put in the bold letters above, viz., Promotion from one grade pay to another “. However they have not given attention to the clear wordings under the same Rule (i) which is also put in the bold letters above – “the Grade pay corresponding to the promotion post”. At the time of release of 6CPC notification itself we discussed the adverse effect of this Rule in GConnect, especially in the case of uneven merger of three or four non-gazetted and gazetted cadres under one Grade Pay.
By understanding the field level problems, a Clarification was issued in OM No.F. No.1/1/2008 IC dated 13/09/2008 by the Government which reads as follows
“Clarification 2: The method of fixation of pay on promotion after 01.01.2006
On promotion from one grade to another/financial upgradation under ACP, a Government servant has an option under FR 22(I)(a)(1) to get his pay fixed in the higher post either from the date of his promotion, or from date of his next increment, viz. 1st July of the year. The pay will be fixed in the following manner in the revised pay structure:-
(a) in case the Government servant opts to get his pay fixed from his date of next increment, then, on the date of promotion, pay in the pay in the pay band shall continue unchanged, but the grade pay of the higher post will be granted…”
The words coined under Rule 13 as “Promotion from one Grade Pay to another” has been changed in the form of clarification dated 13.09.2008 mentioned above to the extent that “On promotion from one Grade to another grade”, to rectify the mistake that is causing the pay fixation problem we are discussing so far. So, if an employee promoted from one grade to the other, he is entitled for pay fixation with an increment of 3% irrespective of the fact that both the grades from and to which the employee was promoted carry same grade.
With the clarifications issued further by the Government, even the very little ambiguity that prevailed has been sorted out now. Thus the audit /SRU teams are to review their stand on this issue.
If the audit/SRU teams and PAOs are still persisting with those 7 words i.e. promotion from one grade pay to another, following fundamental things are under Question.
What will be the use of forming a DPC for promotion, if no pay benefit accrues to the promoted employee?
What is the fun in shuffling the employee across the State in the name of a promotion without any pay Benefit?
I feel this disorder has been caused not because of the government orders but the wrong interpretation of the same. It is causing considerable financial loss to certain employees in the form of denial of increment at the time of promotion.
This is the Audit Observation of SRU and PAOs that causes the problem:
“As per Rule 13 of CCS Revised Pay Rules 2008, fixation will be done only in case of promotion from one grade pay to another in the revised pay structure. As such, no fixation benefit in the form of increment equal to 3% of Pay Band +Grade pay should be allowed where there is no change in grade pay due to promotion.”
The cadres affected by this wrong interpretation are :
Case 1: When Superintendents who got the grade pay of Rs.5400 as on 1.1.2006, are granted ACP to the pre-revised scale of 8000-14000 from the pre-revised scale of 7500-12000, pay fixation with 3% increment is denied to them, on the notion that it is only an ACP to the next grade that carries same grade pay.
Case 2: Administrative Officers promoted from DOS cadre, DOS from STA cadre, Inspectors from STA cadre, and Havildars promoted from Sepoys cadre have been badly affected by this wrong interpretation.
Case 3: A Deputy Office Superintendent after completion of service of more than 18 years, which includes the service of a decade or more in the junior cadres like TA/STA/UDC/LDC etc, is promoted now as AO and transferred from one end to the other end of the State. Do you how much his pay hike will be for this promotion? A Big Zero !
Case 4 : So is the case of a Senior Tax Assistant who has been promoted as Deputy Office Superintendent and under the orders of transfer from one end to the other end of the State without any change in his pay as a result of the promotion.
A close look at Rule 13 of CCS Revised Pay Rules 2008, that provides the procedure for fixation on promotion after 01/01/2006 could throw some light on this issue.
“ 13.fixation of pay on promotion on or after 1.1.2006- in the case of promotion from one grade pay to another in revised pay structure, the fixation will be done sa follows:-
(i) one increment equal to 3% of the sum of the pay in the pay band and the existing grade pay will be computed and rounded off to the next multiple of 10.This will be added to the existing pay in the pay band. The grade pay corresponding to the promotion post will thereafter be granted in addition to this pay in the pay band. …”
The portion where the audit team got stranded was put in the bold letters above, viz., Promotion from one grade pay to another “. However they have not given attention to the clear wordings under the same Rule (i) which is also put in the bold letters above – “the Grade pay corresponding to the promotion post”. At the time of release of 6CPC notification itself we discussed the adverse effect of this Rule in GConnect, especially in the case of uneven merger of three or four non-gazetted and gazetted cadres under one Grade Pay.
By understanding the field level problems, a Clarification was issued in OM No.F. No.1/1/2008 IC dated 13/09/2008 by the Government which reads as follows
“Clarification 2: The method of fixation of pay on promotion after 01.01.2006
On promotion from one grade to another/financial upgradation under ACP, a Government servant has an option under FR 22(I)(a)(1) to get his pay fixed in the higher post either from the date of his promotion, or from date of his next increment, viz. 1st July of the year. The pay will be fixed in the following manner in the revised pay structure:-
(a) in case the Government servant opts to get his pay fixed from his date of next increment, then, on the date of promotion, pay in the pay in the pay band shall continue unchanged, but the grade pay of the higher post will be granted…”
The words coined under Rule 13 as “Promotion from one Grade Pay to another” has been changed in the form of clarification dated 13.09.2008 mentioned above to the extent that “On promotion from one Grade to another grade”, to rectify the mistake that is causing the pay fixation problem we are discussing so far. So, if an employee promoted from one grade to the other, he is entitled for pay fixation with an increment of 3% irrespective of the fact that both the grades from and to which the employee was promoted carry same grade.
With the clarifications issued further by the Government, even the very little ambiguity that prevailed has been sorted out now. Thus the audit /SRU teams are to review their stand on this issue.
If the audit/SRU teams and PAOs are still persisting with those 7 words i.e. promotion from one grade pay to another, following fundamental things are under Question.
What will be the use of forming a DPC for promotion, if no pay benefit accrues to the promoted employee?
What is the fun in shuffling the employee across the State in the name of a promotion without any pay Benefit?
ENHANCED GRADE PAY FOR INSPECTORS
In line with the enhanced grade pay of Rs.4600/- granted to certain cadres such as income tax, customs and central excise Inspectors who were drawing pay in the pre-revised scale of Rs.6500-10500, Assistants and PA of CSS, Armed Forces Headquarter service, Indian Foreign Service “B” and Railway Secretariat Service and counter part stenographer Services have also now been granted the grade pay of Rs.4600/-
Monday, November 2, 2009
Do Govt Employees need Health Insurance ?
“Why should I go for a Health Insurance if I am a Government Employee? I am already covered by either CGHS or Medical Attendance Rules.” This may be your thought process when you start reading this article.
But the reality is in case of an unfortunate event like you or your family members had to be admitted in a good hospital for a medical treatment, the present health schemes such as CGHS or Medical Attendance Rules might not cover the entire medical expenditure as these schemes have a cap in the form of package or schedule rates. And the net result is you will not be reimbursed with what you had actually paid to Hospital. Willhealth Insurance schemes could come in handy at these kind of situations ?
Answer for this question may not be affirmative if you had asked this question last year. Because till last year Government norms for claiming medical reimbursement and Health Insurance claim simultaneously was bit stringent as the total of reimbursement from the government and the health insurance claim shall not exceed the package rate prescribed by the Government. In other words there was no additional benefit in taking a health insurance policy if you are a government employee.
However, this year this condition has been relaxed. We can claim medical reimbursement from Government as well the hospitalization expenses from the Insurance Company, provided the total claim should not exceed the actual expenditure.
Click here to go through this earlier article on GConnect about Govt orders on claiming medical reimbursement as well as insurance claim
Be an early bird:
Also most people tend to think that Health Insurance is something that they need to think about only when they grow old.
However, the fact is Health insurance premium tends to increase with age - more the age, higher the premium. So insure at a young age. So that your insurance gets fixed at a low cost and by the time you grow old and the money become dearer, your insurance premium cost will be almost negligible.
Stay insured:
The other truth is that health insurance protects you in case you become seriously ill or meet with an accident. A sudden accident, loss of health or natural disaster can happen to anyone. Such situations can drastically alter a person’s life, causing loss of income and inability to pay bills. So, it makes sense to stay insured
Cost of Health Insurance:
A health insurance policy not only covers the cost of financial losses when disaster strikes, but also helps you tide over emergency medical bills due tohospitalization. If you think your health insurance premium is expensive, just wait till you receive a medical bill.
Even if someone is down with jaundice or malaria and requires hospitalization for a couple of days, his hospital bill could range from anywhere between Rs 15,000 and 25,000 depending on the hospital. And in these days of rising health care costs, imagine a chronic diabetic who needs insulin injections everyday, some one who needs frequent dialysis/chemotherapy or someone who needs continuous medication to keep living.
While taking a survey of the Health Insurance premium cost, we just found that at a cost ranging from Rs. 100 to Rs 200 per member per month, a family consists of 4 members viz., husband in the age of 40, wife in the age of 36 and two kids in the age of 12 and 7, could be covered with thehealth insurance benefits of Rs.2 lakhs per year. The following is the chart containing premium cost per year for a sum assured amount of Rs.2 lakhs for the family consists of 4 members as narrated above.
health-insurance-1
Please note that this is not a campaign to the insurance companies mentioned in the chart. There may be other insurance companies which could offer good rates than the premium cost mentioned in this chart. This is just an indication to emphasize thatinsurance premium costs are affordable. Readers are advised to verify the health insurance schemes offered by various companies before choosing the right one that suits them.
What are the other benefits of taking a Health Insurance policy?
The immediate benefit of taking up a Health Insurance policy is the Tax benefit that you can enjoy under section 80 D of the Income Tax Act.
Do not worry if you do not have adequate money to pay for sudden hospitalization or surgery. Your health insurance policy offers a cashless hospitalization facility. This facility is a great help since one doesn’t have to run around in the middle of the night to collect cash for paying up large deposits prior to admission.
If a person gets hospitalized all his medical expenses 30 days prior to hospitalization and 60 days post hospitalization will be covered. This includes nursing expenses, diagnostic and medical expenses, surgery, anesthesia cost, doctor’s expense, specialist fees, scanning, x-ray, ambulance expense, oxygen, operation theatre expenses, and cost of surgical appliances, room expenditure, day care expense and similar expenses.
There are few treatments which due to technological advancement are done as an outpatient, that is, you need not have prolonged hospitalization. These treatments are also covered under health insurance.
Reduced Health Insurance Cost over the period if no claim now:
If you are a non-claimant don’t think that your money is wasted. In fact, a Health Insurance policy is most advantageous to you when you do not claim for the first few years and stay insured continuously. You will not only enjoy the Incometax benefits under Section 80D of the IT Act, but also your sum insured gets increased without paying any extra premium by way of cumulative bonus. Or you can keep the sum assured constant and start paying lesser premium.
But the reality is in case of an unfortunate event like you or your family members had to be admitted in a good hospital for a medical treatment, the present health schemes such as CGHS or Medical Attendance Rules might not cover the entire medical expenditure as these schemes have a cap in the form of package or schedule rates. And the net result is you will not be reimbursed with what you had actually paid to Hospital. Willhealth Insurance schemes could come in handy at these kind of situations ?
Answer for this question may not be affirmative if you had asked this question last year. Because till last year Government norms for claiming medical reimbursement and Health Insurance claim simultaneously was bit stringent as the total of reimbursement from the government and the health insurance claim shall not exceed the package rate prescribed by the Government. In other words there was no additional benefit in taking a health insurance policy if you are a government employee.
However, this year this condition has been relaxed. We can claim medical reimbursement from Government as well the hospitalization expenses from the Insurance Company, provided the total claim should not exceed the actual expenditure.
Click here to go through this earlier article on GConnect about Govt orders on claiming medical reimbursement as well as insurance claim
Be an early bird:
Also most people tend to think that Health Insurance is something that they need to think about only when they grow old.
However, the fact is Health insurance premium tends to increase with age - more the age, higher the premium. So insure at a young age. So that your insurance gets fixed at a low cost and by the time you grow old and the money become dearer, your insurance premium cost will be almost negligible.
Stay insured:
The other truth is that health insurance protects you in case you become seriously ill or meet with an accident. A sudden accident, loss of health or natural disaster can happen to anyone. Such situations can drastically alter a person’s life, causing loss of income and inability to pay bills. So, it makes sense to stay insured
Cost of Health Insurance:
A health insurance policy not only covers the cost of financial losses when disaster strikes, but also helps you tide over emergency medical bills due tohospitalization. If you think your health insurance premium is expensive, just wait till you receive a medical bill.
Even if someone is down with jaundice or malaria and requires hospitalization for a couple of days, his hospital bill could range from anywhere between Rs 15,000 and 25,000 depending on the hospital. And in these days of rising health care costs, imagine a chronic diabetic who needs insulin injections everyday, some one who needs frequent dialysis/chemotherapy or someone who needs continuous medication to keep living.
While taking a survey of the Health Insurance premium cost, we just found that at a cost ranging from Rs. 100 to Rs 200 per member per month, a family consists of 4 members viz., husband in the age of 40, wife in the age of 36 and two kids in the age of 12 and 7, could be covered with thehealth insurance benefits of Rs.2 lakhs per year. The following is the chart containing premium cost per year for a sum assured amount of Rs.2 lakhs for the family consists of 4 members as narrated above.
health-insurance-1
Please note that this is not a campaign to the insurance companies mentioned in the chart. There may be other insurance companies which could offer good rates than the premium cost mentioned in this chart. This is just an indication to emphasize thatinsurance premium costs are affordable. Readers are advised to verify the health insurance schemes offered by various companies before choosing the right one that suits them.
What are the other benefits of taking a Health Insurance policy?
The immediate benefit of taking up a Health Insurance policy is the Tax benefit that you can enjoy under section 80 D of the Income Tax Act.
Do not worry if you do not have adequate money to pay for sudden hospitalization or surgery. Your health insurance policy offers a cashless hospitalization facility. This facility is a great help since one doesn’t have to run around in the middle of the night to collect cash for paying up large deposits prior to admission.
If a person gets hospitalized all his medical expenses 30 days prior to hospitalization and 60 days post hospitalization will be covered. This includes nursing expenses, diagnostic and medical expenses, surgery, anesthesia cost, doctor’s expense, specialist fees, scanning, x-ray, ambulance expense, oxygen, operation theatre expenses, and cost of surgical appliances, room expenditure, day care expense and similar expenses.
There are few treatments which due to technological advancement are done as an outpatient, that is, you need not have prolonged hospitalization. These treatments are also covered under health insurance.
Reduced Health Insurance Cost over the period if no claim now:
If you are a non-claimant don’t think that your money is wasted. In fact, a Health Insurance policy is most advantageous to you when you do not claim for the first few years and stay insured continuously. You will not only enjoy the Incometax benefits under Section 80D of the IT Act, but also your sum insured gets increased without paying any extra premium by way of cumulative bonus. Or you can keep the sum assured constant and start paying lesser premium.
MNS wing protests university's fee hike
MNS wing protests university's fee hike
MUMBAI: Activists of the Maharashtra Navnirman Vidyarthi Sena (MNVS), the students' wing of the MNS, stormed Mumbai University's office at Fort
on Saturday afternoon and gheraoed registrar K Venkatramani to protest against a fee hike.
MNVS vice-president Sainath Durge, who heads the Mumbai University cell of the students' wing, said, "The varsity has increased the fees for courses, such as MCom, MA, MSc and PhD, by 50% to 300%. They claimed that they had hiked the amount as the government had implemented the Sixth Pay Commission.'' The MCom fees, which was Rs 3,000, has now been raised to Rs 11,000. A student said, "The hike came all of a sudden. The officials announced the rise of fees for 15 post-graduate courses, including MSc in computers and MCom. The fees of some of the courses have been hiked by as much as 300%.''
A discussion on the rise of fees was first held in February and subsequently, the final decision was taken on August 7. A circular on the hiked amounts was issued on October 6. "What surprised us is that the authorities are now collecting the arrears from students. We decided to take up their cause after many of them complained to us. We told the university officials that it was unfair to collect the fees after the academic year had already started,'' said Durge.
The MNVS activists sat outside Venkatramani's office for nearly three hours and left only after being assured that the varsity would look into the matter. The police were also called but no one was arrested.
"The vice-chancellor is currently not in town. She will be back on Monday, after which we will request her to look into the matter,'' said registrar K Venkataramani.
Through this move, the MNVS seems to have earned a brownie point over the Shiv Sena-sponsored Bharatiya Vidyarthi Sena, a political source said. The two students' wings are vying with each other to control the campus and this time around, the MNS wing took the lead.
MUMBAI: Activists of the Maharashtra Navnirman Vidyarthi Sena (MNVS), the students' wing of the MNS, stormed Mumbai University's office at Fort
on Saturday afternoon and gheraoed registrar K Venkatramani to protest against a fee hike.
MNVS vice-president Sainath Durge, who heads the Mumbai University cell of the students' wing, said, "The varsity has increased the fees for courses, such as MCom, MA, MSc and PhD, by 50% to 300%. They claimed that they had hiked the amount as the government had implemented the Sixth Pay Commission.'' The MCom fees, which was Rs 3,000, has now been raised to Rs 11,000. A student said, "The hike came all of a sudden. The officials announced the rise of fees for 15 post-graduate courses, including MSc in computers and MCom. The fees of some of the courses have been hiked by as much as 300%.''
A discussion on the rise of fees was first held in February and subsequently, the final decision was taken on August 7. A circular on the hiked amounts was issued on October 6. "What surprised us is that the authorities are now collecting the arrears from students. We decided to take up their cause after many of them complained to us. We told the university officials that it was unfair to collect the fees after the academic year had already started,'' said Durge.
The MNVS activists sat outside Venkatramani's office for nearly three hours and left only after being assured that the varsity would look into the matter. The police were also called but no one was arrested.
"The vice-chancellor is currently not in town. She will be back on Monday, after which we will request her to look into the matter,'' said registrar K Venkataramani.
Through this move, the MNVS seems to have earned a brownie point over the Shiv Sena-sponsored Bharatiya Vidyarthi Sena, a political source said. The two students' wings are vying with each other to control the campus and this time around, the MNS wing took the lead.
Thursday, August 27, 2009
6 TH PAY COMMISSION- 2ND INSTALMENT
The Finance Ministry today decided to release the balance 60 per cent of revised pay arrears to all government employees. By the end of September, the government will shell out Rs 17,500 crore to its 50 lakh employees — a kind of mini stimulus before the festival season.
The arrears are part of the Sixth Pay Commission awards that were implemented with retrospective effect from January 1, 2006.
The Department of Expenditure issued a notification asking administrative ministries to release the money sanctioned to them in the Budget for 2009-10. The Department has recommended that employees retain at least a part of the arrears in their government provident fund accounts.
Pensioners too will receive their second instalment of arrears. After these payouts are made, the government will have given its employees a total of nearly Rs 30,000 crore in arrears.
The arrears are part of the Sixth Pay Commission awards that were implemented with retrospective effect from January 1, 2006.
The Department of Expenditure issued a notification asking administrative ministries to release the money sanctioned to them in the Budget for 2009-10. The Department has recommended that employees retain at least a part of the arrears in their government provident fund accounts.
Pensioners too will receive their second instalment of arrears. After these payouts are made, the government will have given its employees a total of nearly Rs 30,000 crore in arrears.
Thursday, August 13, 2009
Raising retirement to 62 for Central Govt. Employees
Wednesday, August 12, 2009
Raising retirement to 62 for Central Govt. Employees ? May be announced on Independence day.
Prime Minister Manmohan Singh is keen on extending the retirement age of civil servants to 62, one of his aides told this columnist in Delhi recently. He had apparently been keen to do so earlier this year, but such a change was thought politically risky at a time when the Congress party was using Rahul Gandhi’s youth as its electoral strategy (how do you convince voters that the party is going to harness the energy of the youth if you propose to keep all the old babus for another two years?). It may seem unreal now, but back then many in government feared that the Congress might lose power (even national security advisor M K Narayanan apparently threw a farewell party!), so the PM’s plan was shelved. It is being revived again, with the PM himself taking great interest.This proposal has two justifications. First and foremost is fiscal. As had happened when the retirement age was raised from 58 to 60 in 1998, the expenditure on pensions would be curbed. In this year’s budget, finance minister Pranab Mukherjee earmarked non-Plan expenditure for pensions at Rs 25,085.49 crore. That is a growth of almost 40 per cent (39.4 per cent). It is a major contributor to the total spending that was announced by Pranab, a little over Rs 10 trillion, a hike of around 36 per cent from last year. Of course, coming at the time of a global economic slowdown this massive expenditure is possibly a good risk to take; but the prime minister is obviously looking for ways to keep costs from running away.Of course, worse than the central finances are those of many of the States; their governments are far more reckless than the Centre’s. In the decade after New Delhi raised the age of superannuation to 60, the States slowly but surely followed suit. The States would likely follow the Centre’s lead again and that would help them manage their fiscal problems.The other reason the PM wants to push retirement back another two years is that he wants to make tap the valuable human resource that bureaucrats represent. For one thing, life expectancy in India has gone up. According to UNICEF, in 2007 it was 64 years, and this is a figure that the average bureaucrat would have pulled upwards. Thus, when a civil servant retires at 60, she or he is still at their mental peak, and each acts as an institutional storehouse of government policy and programme implementation. Retaining them for another two years would possibly enrich functioning of the government. At the very least, it would keep some of the hypocrites off the boob tube — it’s very bizarre that the same bureaucrats who set government policy for 30 years or so, start abusing the government at the nearest TV station studio the moment they find themselves jobless. (Maybe it’s their pique at not getting a post-retirement sinecure).The PM is not the first person to have such a brainwave. Almost a year ago, the University Grants Commission appointed a committee under G K Chadha to study pay revision, and he made a suggestion that teachers’ retirement age be raised to 65. This is timely advice considering that India is currently set to expand education in a major way under the stewardship of the dynamic Kapil Sibal. It is not just a matter of filling the ranks of teachers, but imparting quality teaching to India’s children.If the PM wants to extend the retirement age then he would only be following a global trend. The retirement age in the US is 65; in Japan it is 60 and the government is gradually raising it to 65 by 2013, but people anyway continue working till 65 on reduced wages. By 2033, Austria’s retirement age will be 65. In Denmark it will be 67 years by 2027. Hungary plans to make it 69 years by 2050. Israel is already raising it to 67 years for men. All these countries and many others are increasing the retirement age because of an increasingly alarming problem — their ageing populations. By 2020, a quarter of Japan’s population will be 65 and over. Life expectancy in the US is about 77, and by 2050 is expected to go up to 83. Japan’s is already 82.4 years. Indeed, the life expectancy in some of the advanced countries, according to 2009 OECD data, are: France 80.9 years, Canada 80.4 years, Sweden 80.8 years, Italy 80.9 years and Spain 81.1 years. You would have to think that as India gets wealthier — which it undoubtedly is — our population’s life expectancy will similarly increase.Imagine a person retiring at 60, but living till at least 80 (if not more), perhaps physically weakened as she or he passes 75, but still mentally at the top of his or her game. What do they do with such a long retirement? And besides the fact that the increase in life expectancy leaves retirees with too much time on their hands and their skills unutilised, it also places a great burden on the working population, which has to finance the social security and health benefits that the elderly need. In the West it costs much more to maintain an elderly person than it does to raise a child; and health care costs in the rich world are projected to be those countries’ biggest finance headache (much more than the costs of the stimulus to end the current economic crisis). Thus it is not surprising that there are an increasing number of voices in the West and Japan who are talking of increasing the retirement age to 75. Doing so would engage the older citizens, contribute to the state exchequer in terms of taxes from older workers, and reduce the social security burden on the young. It is a surprisingly obvious solution.With the PM politically on the defensive after the all-round criticism of his joint statement with his Pakistani counterpart at Sharm-el-Sheikh, it is unclear when he may undertake the change in retirement age, though he is said to be very enthusiastic about it. Sharm-el-Sheikh will pass however; party boss Sonia Gandhi can manage the naysayers in the Congress, and the BJP is still shell-shocked from its electoral defeat to do serious damage to the government. And even within the BJP it is thought that currently the coming assembly elections in Maharashtra favour the Congress. Manmohan Singh will soon enough have the political wind at his back to make this proposal. Good thing, for it is an eminently sensible one.
Source : Column of Sri Aditya Sinha for express buzz.
An Update
The government is actively considering raising the retirement age of all central government employees, including those in the armed forces, from the present 60 to 62 years.
Finance Minister Pranab Mukherjee has submitted a report to the prime minister outlining all the pros and cons of the move, including the “cascading effects” on government employment and the huge savings, at least for two years, on account of retirement payouts.
If the Department of Personnel and Training (DoPT) and the prime minister find the arguments forwarded by the finance ministry credible and convincing, the announcement may come as early as August 15, as part of Manmohan Singh’s Independence Day speech.
The Cabinet may discuss the matter tomorrow.
Although the finance ministry is making a strong case for the move, the DoPT is taking time to make up its mind, possibly out of consideration for the 1979 batch of the Indian Administrative Service (IAS) and other central services. Officers of the 1979 batch have been empanelled for promotion to the ranks of additional secretary and secretary but can take up their posts only after the present incumbents retire. If an announcement extending the retirement age comes before November, a batch of empanelled joint secretaries stand to lose their future ranks. In turn, this will also affect those who joined the central administrative services in 1980. The DoPT also says that the age profile of Indian bureaucrats, instead of becoming younger, will become older, out of tune with the rest of the world.
For the finance ministry, the gains from the move are clear. The pension payout of all armed forces personnel of the rank of Lieutenant General and equivalent who were to retire this year will be postponed by 24 months; the government will also defer by two years the liability of paying pension to more than 100,000 employees. While salaries will have to continue to be paid, this will be cheaper than paying upfront benefits like gratuity.
This is all the more important given the government’s other financial liabilities on account of stimulus spending and one drought, though the effects of the latter will kick in only in the next fiscal year. The fiscal deficit is 6.8 per cent of gross domestic product this year and a two-year lag in paying pensions will help in bridging this.
In 1998, the National Democratic Alliance government had raised the retirement age from 58 to 60, a move that benefitted 90,000 government servants and 50,000 defence personnel. At the time, the logic was: the retirement of 140,000 employees would have cost Rs 5,200 crore whereas paying salaries cost only Rs 1,493 crore.
That move came in the wake of the 5th Pay Commission report which had just been implemented by the then United Front government. In 2003, the government also right-sized the central government employee workforce by 30 per cent.
Every time the Centre announces an increase or concession on pay packages, both public-sector units and state governments follow suit. If the prime minister does decide to raise the retirement age, state governments and Public Sector Units (PSUs) will mirror this action. This has its own implications for many cash-strapped states like Punjab.
If the decision is finally taken, it will only be the third time the government will have raised the retirement age. Jawaharlal Nehru was the first prime minister to have increased the age of superannuation from 55 to 58 following the 1962 war with China. The Atal Bihari Vajpayee government did it a second time in 1998.
Source : Business Standard.
at 9:23 PM
0 comments:
Raising retirement to 62 for Central Govt. Employees ? May be announced on Independence day.
Prime Minister Manmohan Singh is keen on extending the retirement age of civil servants to 62, one of his aides told this columnist in Delhi recently. He had apparently been keen to do so earlier this year, but such a change was thought politically risky at a time when the Congress party was using Rahul Gandhi’s youth as its electoral strategy (how do you convince voters that the party is going to harness the energy of the youth if you propose to keep all the old babus for another two years?). It may seem unreal now, but back then many in government feared that the Congress might lose power (even national security advisor M K Narayanan apparently threw a farewell party!), so the PM’s plan was shelved. It is being revived again, with the PM himself taking great interest.This proposal has two justifications. First and foremost is fiscal. As had happened when the retirement age was raised from 58 to 60 in 1998, the expenditure on pensions would be curbed. In this year’s budget, finance minister Pranab Mukherjee earmarked non-Plan expenditure for pensions at Rs 25,085.49 crore. That is a growth of almost 40 per cent (39.4 per cent). It is a major contributor to the total spending that was announced by Pranab, a little over Rs 10 trillion, a hike of around 36 per cent from last year. Of course, coming at the time of a global economic slowdown this massive expenditure is possibly a good risk to take; but the prime minister is obviously looking for ways to keep costs from running away.Of course, worse than the central finances are those of many of the States; their governments are far more reckless than the Centre’s. In the decade after New Delhi raised the age of superannuation to 60, the States slowly but surely followed suit. The States would likely follow the Centre’s lead again and that would help them manage their fiscal problems.The other reason the PM wants to push retirement back another two years is that he wants to make tap the valuable human resource that bureaucrats represent. For one thing, life expectancy in India has gone up. According to UNICEF, in 2007 it was 64 years, and this is a figure that the average bureaucrat would have pulled upwards. Thus, when a civil servant retires at 60, she or he is still at their mental peak, and each acts as an institutional storehouse of government policy and programme implementation. Retaining them for another two years would possibly enrich functioning of the government. At the very least, it would keep some of the hypocrites off the boob tube — it’s very bizarre that the same bureaucrats who set government policy for 30 years or so, start abusing the government at the nearest TV station studio the moment they find themselves jobless. (Maybe it’s their pique at not getting a post-retirement sinecure).The PM is not the first person to have such a brainwave. Almost a year ago, the University Grants Commission appointed a committee under G K Chadha to study pay revision, and he made a suggestion that teachers’ retirement age be raised to 65. This is timely advice considering that India is currently set to expand education in a major way under the stewardship of the dynamic Kapil Sibal. It is not just a matter of filling the ranks of teachers, but imparting quality teaching to India’s children.If the PM wants to extend the retirement age then he would only be following a global trend. The retirement age in the US is 65; in Japan it is 60 and the government is gradually raising it to 65 by 2013, but people anyway continue working till 65 on reduced wages. By 2033, Austria’s retirement age will be 65. In Denmark it will be 67 years by 2027. Hungary plans to make it 69 years by 2050. Israel is already raising it to 67 years for men. All these countries and many others are increasing the retirement age because of an increasingly alarming problem — their ageing populations. By 2020, a quarter of Japan’s population will be 65 and over. Life expectancy in the US is about 77, and by 2050 is expected to go up to 83. Japan’s is already 82.4 years. Indeed, the life expectancy in some of the advanced countries, according to 2009 OECD data, are: France 80.9 years, Canada 80.4 years, Sweden 80.8 years, Italy 80.9 years and Spain 81.1 years. You would have to think that as India gets wealthier — which it undoubtedly is — our population’s life expectancy will similarly increase.Imagine a person retiring at 60, but living till at least 80 (if not more), perhaps physically weakened as she or he passes 75, but still mentally at the top of his or her game. What do they do with such a long retirement? And besides the fact that the increase in life expectancy leaves retirees with too much time on their hands and their skills unutilised, it also places a great burden on the working population, which has to finance the social security and health benefits that the elderly need. In the West it costs much more to maintain an elderly person than it does to raise a child; and health care costs in the rich world are projected to be those countries’ biggest finance headache (much more than the costs of the stimulus to end the current economic crisis). Thus it is not surprising that there are an increasing number of voices in the West and Japan who are talking of increasing the retirement age to 75. Doing so would engage the older citizens, contribute to the state exchequer in terms of taxes from older workers, and reduce the social security burden on the young. It is a surprisingly obvious solution.With the PM politically on the defensive after the all-round criticism of his joint statement with his Pakistani counterpart at Sharm-el-Sheikh, it is unclear when he may undertake the change in retirement age, though he is said to be very enthusiastic about it. Sharm-el-Sheikh will pass however; party boss Sonia Gandhi can manage the naysayers in the Congress, and the BJP is still shell-shocked from its electoral defeat to do serious damage to the government. And even within the BJP it is thought that currently the coming assembly elections in Maharashtra favour the Congress. Manmohan Singh will soon enough have the political wind at his back to make this proposal. Good thing, for it is an eminently sensible one.
Source : Column of Sri Aditya Sinha for express buzz.
An Update
The government is actively considering raising the retirement age of all central government employees, including those in the armed forces, from the present 60 to 62 years.
Finance Minister Pranab Mukherjee has submitted a report to the prime minister outlining all the pros and cons of the move, including the “cascading effects” on government employment and the huge savings, at least for two years, on account of retirement payouts.
If the Department of Personnel and Training (DoPT) and the prime minister find the arguments forwarded by the finance ministry credible and convincing, the announcement may come as early as August 15, as part of Manmohan Singh’s Independence Day speech.
The Cabinet may discuss the matter tomorrow.
Although the finance ministry is making a strong case for the move, the DoPT is taking time to make up its mind, possibly out of consideration for the 1979 batch of the Indian Administrative Service (IAS) and other central services. Officers of the 1979 batch have been empanelled for promotion to the ranks of additional secretary and secretary but can take up their posts only after the present incumbents retire. If an announcement extending the retirement age comes before November, a batch of empanelled joint secretaries stand to lose their future ranks. In turn, this will also affect those who joined the central administrative services in 1980. The DoPT also says that the age profile of Indian bureaucrats, instead of becoming younger, will become older, out of tune with the rest of the world.
For the finance ministry, the gains from the move are clear. The pension payout of all armed forces personnel of the rank of Lieutenant General and equivalent who were to retire this year will be postponed by 24 months; the government will also defer by two years the liability of paying pension to more than 100,000 employees. While salaries will have to continue to be paid, this will be cheaper than paying upfront benefits like gratuity.
This is all the more important given the government’s other financial liabilities on account of stimulus spending and one drought, though the effects of the latter will kick in only in the next fiscal year. The fiscal deficit is 6.8 per cent of gross domestic product this year and a two-year lag in paying pensions will help in bridging this.
In 1998, the National Democratic Alliance government had raised the retirement age from 58 to 60, a move that benefitted 90,000 government servants and 50,000 defence personnel. At the time, the logic was: the retirement of 140,000 employees would have cost Rs 5,200 crore whereas paying salaries cost only Rs 1,493 crore.
That move came in the wake of the 5th Pay Commission report which had just been implemented by the then United Front government. In 2003, the government also right-sized the central government employee workforce by 30 per cent.
Every time the Centre announces an increase or concession on pay packages, both public-sector units and state governments follow suit. If the prime minister does decide to raise the retirement age, state governments and Public Sector Units (PSUs) will mirror this action. This has its own implications for many cash-strapped states like Punjab.
If the decision is finally taken, it will only be the third time the government will have raised the retirement age. Jawaharlal Nehru was the first prime minister to have increased the age of superannuation from 55 to 58 following the 1962 war with China. The Atal Bihari Vajpayee government did it a second time in 1998.
Source : Business Standard.
at 9:23 PM
0 comments:
Monday, July 6, 2009
Sixth Pay Commission’s award to its serving and retired employees.
For all the impression of being a populist exercise, Ms Mamata Banerjee’s 2009-10 Rail Budget is actually a pretty practical response to the prevailing business environment in which the public sector transport behemoth is operating. Consider this. In 2008-09, the economic slowdown resulted in the Indian Railways’ (IR) freight loading falling short of its budgeted target of 850 million tonnes (mt) by 17 mt.
Simultaneously, it had to fork out an additional Rs 13,600 crore following the implementation of the Sixth Pay Commission’s award to its serving and retired employees. The current fiscal, too, will see an outgo of Rs 14,600 crore on this account.
This double whammy has severely dented the IR’s finances. After meeting all its expenses, including provisions towards dividend and statutory appropriations, the Railways will be left with an investible surplus of just Rs 8,631.04 crore during 2009-10 — as against Rs 19,972.43 crore in 2007-08.
Despite this setback, beyond any Rail Minister’s control, Ms Banerjee has not compromised on the Plan outlays. For the current fiscal, the total investment Plan has been pegged at an all-time-high of Rs 40,745 crore. This is not only higher than the Rs 36,336 crore of 2008-09, but even the Rs 30,145.34 crore of 2007-08, when the IR was in the pink of financial health!
This strategy of maintaining, or rather enhancing, capital investments, even in a downturn scenario, may reap dividends in the coming fiscals. By 2010-11, the arrears against the Sixth Pay Commission award would have been fully paid up. Also, by then, an economic recovery would have set in, reversing the present vicious cycle of soaring costs and sluggish revenues into a virtuous cycle for the IR.
Ms Banerjee’s focus now should be on ensuring that the budgeted capital outlays get spent, so that the stage is set for the Railways to capitalise on the better times ahead. But on the whole, one cannot doubt that the strategy laid out in the Rail Budget is both sound as well as bold (in most cases, the immediate response of firms to revenue pressures is a cut-back on capex).
Higher Plan size
How has Ms Banerjee managed to project a higher Plan size? Well, to an extent, the credit goes to the Finance Minister, Mr Pranab Mukherjee. Call it the Bengal connection, but the fact is that Mr Mukherjee has bestowed Ms Banerjee with an extra Rs 5,000 crore of support from the exchequer.
Budget support to the Railways’ Plan has been pegged at Rs 15,800 crore, which is more than the Rs 10,800 crore pledged in the Interim Budget for 2009-10. Mr Mukherjee has further helped Ms Banerjee’s cause by allowing the Indian Railway Finance Corporation (IRFC) to float Rs 5,000 crore worth of tax-free bonds this fiscal.
The tax-free bond facility to the IR’s fund-raising arm was withdrawn after 2003-04 by Mr Mukherjee predecessor, Mr P. Chidambaram. IRFC officials say that the renewed permission to issue tax-free bonds would enable a 100 to 150 basis point reduction in its cost of funds. That, in turn, has given the Railways the leeway to target borrowings of Rs 9,170 crore in the current fiscal, more than the Rs 7,190 crore raised in 2008-09.
IRFC raises funds for IR at close to sovereign debt cost levels and a margin of 50-70 basis points. The higher budget support of Rs 15,800 crore, along with IRFC’s borrowings of Rs 9,170 crore, together will help fund over 61 per cent of the IR’s budgeted Plan of Rs 40,745 crore this fiscal.
Big outlays
It is only the balance of Rs 15,775 crore that the Railways will have to raise from internal and other sources. Ms Banerjee has clearly tied up the funds for her ambitious Plan; what remains to be seen is whether the investments actually happen on the ground. Of the total Rs 40,745-crore Plan, Ms Banerjee has allocated Rs 12,393 crore to rolling stock acquisition. The IR’s procurement plans include 18,000 wagons, 3,041 conventional coaches, 144 LHB coaches, 855 electric multiple units, 444 DEMUs and MEMUs, 250 electric locomotives and 250 diesel locomotives.
The other big outlay is Rs 5,135 crore towards track renewals. Ms Banerjee has also provided Rs 1,880 crore towards the dedicated freight corridor, which is Rs 1,100 crore more than what was allocated last fiscal.
On the services front, instead of making mega announcements, Ms Banerjee has tried widening the number of stations where basic amenities and low-cost food will be made available.
She has also decided to experiment with some new services, like the 12 non-stop passenger trains (which will have operational halts but no commercial halts), three premium parcel services and premium services for container train operators with transit time guarantees.
The premium services will be priced higher, though the exact levels have not yet been finalised. “The exact fares have not yet been decided,” Mr S. S. Khurana, Chairman, Railway Board, said when contacted.
The Minister has not stressed big-ticket projects much, and has qualified her eastern industrial corridor plan by suggesting a “robust business plan”. The lack of a valid business plan for both the eastern and western corridors is perceived as one of the reasons for the delay in the projects.
Related Stories:
Rail Budget: Long on passengers and short on freight
Is Mamata plan more realistic than Lalu’s?
Simultaneously, it had to fork out an additional Rs 13,600 crore following the implementation of the Sixth Pay Commission’s award to its serving and retired employees. The current fiscal, too, will see an outgo of Rs 14,600 crore on this account.
This double whammy has severely dented the IR’s finances. After meeting all its expenses, including provisions towards dividend and statutory appropriations, the Railways will be left with an investible surplus of just Rs 8,631.04 crore during 2009-10 — as against Rs 19,972.43 crore in 2007-08.
Despite this setback, beyond any Rail Minister’s control, Ms Banerjee has not compromised on the Plan outlays. For the current fiscal, the total investment Plan has been pegged at an all-time-high of Rs 40,745 crore. This is not only higher than the Rs 36,336 crore of 2008-09, but even the Rs 30,145.34 crore of 2007-08, when the IR was in the pink of financial health!
This strategy of maintaining, or rather enhancing, capital investments, even in a downturn scenario, may reap dividends in the coming fiscals. By 2010-11, the arrears against the Sixth Pay Commission award would have been fully paid up. Also, by then, an economic recovery would have set in, reversing the present vicious cycle of soaring costs and sluggish revenues into a virtuous cycle for the IR.
Ms Banerjee’s focus now should be on ensuring that the budgeted capital outlays get spent, so that the stage is set for the Railways to capitalise on the better times ahead. But on the whole, one cannot doubt that the strategy laid out in the Rail Budget is both sound as well as bold (in most cases, the immediate response of firms to revenue pressures is a cut-back on capex).
Higher Plan size
How has Ms Banerjee managed to project a higher Plan size? Well, to an extent, the credit goes to the Finance Minister, Mr Pranab Mukherjee. Call it the Bengal connection, but the fact is that Mr Mukherjee has bestowed Ms Banerjee with an extra Rs 5,000 crore of support from the exchequer.
Budget support to the Railways’ Plan has been pegged at Rs 15,800 crore, which is more than the Rs 10,800 crore pledged in the Interim Budget for 2009-10. Mr Mukherjee has further helped Ms Banerjee’s cause by allowing the Indian Railway Finance Corporation (IRFC) to float Rs 5,000 crore worth of tax-free bonds this fiscal.
The tax-free bond facility to the IR’s fund-raising arm was withdrawn after 2003-04 by Mr Mukherjee predecessor, Mr P. Chidambaram. IRFC officials say that the renewed permission to issue tax-free bonds would enable a 100 to 150 basis point reduction in its cost of funds. That, in turn, has given the Railways the leeway to target borrowings of Rs 9,170 crore in the current fiscal, more than the Rs 7,190 crore raised in 2008-09.
IRFC raises funds for IR at close to sovereign debt cost levels and a margin of 50-70 basis points. The higher budget support of Rs 15,800 crore, along with IRFC’s borrowings of Rs 9,170 crore, together will help fund over 61 per cent of the IR’s budgeted Plan of Rs 40,745 crore this fiscal.
Big outlays
It is only the balance of Rs 15,775 crore that the Railways will have to raise from internal and other sources. Ms Banerjee has clearly tied up the funds for her ambitious Plan; what remains to be seen is whether the investments actually happen on the ground. Of the total Rs 40,745-crore Plan, Ms Banerjee has allocated Rs 12,393 crore to rolling stock acquisition. The IR’s procurement plans include 18,000 wagons, 3,041 conventional coaches, 144 LHB coaches, 855 electric multiple units, 444 DEMUs and MEMUs, 250 electric locomotives and 250 diesel locomotives.
The other big outlay is Rs 5,135 crore towards track renewals. Ms Banerjee has also provided Rs 1,880 crore towards the dedicated freight corridor, which is Rs 1,100 crore more than what was allocated last fiscal.
On the services front, instead of making mega announcements, Ms Banerjee has tried widening the number of stations where basic amenities and low-cost food will be made available.
She has also decided to experiment with some new services, like the 12 non-stop passenger trains (which will have operational halts but no commercial halts), three premium parcel services and premium services for container train operators with transit time guarantees.
The premium services will be priced higher, though the exact levels have not yet been finalised. “The exact fares have not yet been decided,” Mr S. S. Khurana, Chairman, Railway Board, said when contacted.
The Minister has not stressed big-ticket projects much, and has qualified her eastern industrial corridor plan by suggesting a “robust business plan”. The lack of a valid business plan for both the eastern and western corridors is perceived as one of the reasons for the delay in the projects.
Related Stories:
Rail Budget: Long on passengers and short on freight
Is Mamata plan more realistic than Lalu’s?
Tuesday, June 30, 2009
GREAT OPPORTUNITY IN R & D
MINISTRY OF Human Resource Development (MoHRD) and Ministry of Science and Technology (MoS&T) assert that talented researchers should be selected for research and teaching. Top administration in these ministries think that they are doing enough to motivate and entice top talents of the country who study in IITs and other high profile academic institutions. However, on surface level, as usual, only money speaks and since money-package to young researchers is not enough and never comparable to packages offered in jobs, especially in private sector, talented pools from top institutions in our country prefer to avoid joining R&D sector as a viable career option.
Since B Tech and M Tech graduates from IIT and other top engineering institutes are offered high-package jobs where they receive Rs 30,000 - 50,000 salary in hands and other perks, they could not opt for joining research where a Junior Research Fellow (JRF) gets a meager Rs 12,000 and a Senior Research Fellow gets Rs 14,000 with no other incentives and an indirect deduction for regular registration fees for about four years (during a crucial phase) in one's life. Moreover, those students, who are not getting high-package job from IIT and keep research as good career option, meticulously opt for joining PhD programmes abroad where they easily gets US 2000 dollars on an average while a foreign degree will rather help them to be the first preference for teaching and research jobs in our academic institutions too.
In the recent sixth pay commission, salary package of Central government has seen abrupt hikes and now employees in research and teaching in India also seem satisfied with their jobs and job packages. Therefore, just because of the generous sixth pay commission, reports say for the first time 12 per cent of the 500 recruitments at DRDO has been from top IIT whose students are primarily known to grab six-figure dollar salaries across the world. But for a great surprise, in previous years the 52 DRDO labs, conducting R&D in naval, aeronautical, life sciences and other sectors, could manage to recruit just one or two engineering graduates from IIT. Though DRDO recruits employees through an entry test and through campus recruitment across 40 IIT, central universities and other engineering schools, the IIT graduates are recruited on campus. Not for big surprise, the sixth pay commission has also helped DRDO to get 30 non-resident Indians recruited last year. Nevertheless, this success of DRDO in recruiting so-called talents is mainly attributed to the recession and lack of high package jobs in the market and only figures in coming years and after recession will tell where country's so-called top talents prefer to move for jobs.
You will definitely be surprised to know that seven IITs together produce on an average 1,500 – 2,000 PhD in an year despite having big structures whereas a single university in America like Princeton University or MIT has intake of 1,500 students for MS and PhD programs in an year. On an average, India produces only 5,000 – 7,000 Science PhD in a year whereas the figure is about 30,000 and more in America. Usually, master and doctoral programme students in the US are paid good stipends during the research and are in great demand for high profile jobs. This keeps the standards and innovation in each sector. Universities as well as industries both marvelously entice students to join higher studies in America.
Therefore, our young researchers after obtaining PhD from IIT and IIS always look for joining post doctoral research or jobs abroad despite there are number of vacancies in teaching and research sectors. Administration opts a foreign degree holder should join or a local PhD pass out should have some years of industrial experience or post doctoral experience in foreign labs whereas as work-environment at home is pathetic in attitude and do not motivate or even allow researchers to implement their ideas properly. A person starts earning US 3,000 - 4,000 dollars on joining job or even research in foreign country, so it is difficult to assume that he or she would prefer to come back to work on a low package and in poor work-environment at home. There are good number of cases when scientists and academic faculties of this country quit jobs to move to foreign countries as there has been large volume of reports on brain drain and talents moving to green pasture. Even employed scientists and faculties from IIT, IISc and top laboratories usually take many year leave to work abroad only for earning good amount of bucks and for the matter of prestige also.
Since B Tech and M Tech graduates from IIT and other top engineering institutes are offered high-package jobs where they receive Rs 30,000 - 50,000 salary in hands and other perks, they could not opt for joining research where a Junior Research Fellow (JRF) gets a meager Rs 12,000 and a Senior Research Fellow gets Rs 14,000 with no other incentives and an indirect deduction for regular registration fees for about four years (during a crucial phase) in one's life. Moreover, those students, who are not getting high-package job from IIT and keep research as good career option, meticulously opt for joining PhD programmes abroad where they easily gets US 2000 dollars on an average while a foreign degree will rather help them to be the first preference for teaching and research jobs in our academic institutions too.
In the recent sixth pay commission, salary package of Central government has seen abrupt hikes and now employees in research and teaching in India also seem satisfied with their jobs and job packages. Therefore, just because of the generous sixth pay commission, reports say for the first time 12 per cent of the 500 recruitments at DRDO has been from top IIT whose students are primarily known to grab six-figure dollar salaries across the world. But for a great surprise, in previous years the 52 DRDO labs, conducting R&D in naval, aeronautical, life sciences and other sectors, could manage to recruit just one or two engineering graduates from IIT. Though DRDO recruits employees through an entry test and through campus recruitment across 40 IIT, central universities and other engineering schools, the IIT graduates are recruited on campus. Not for big surprise, the sixth pay commission has also helped DRDO to get 30 non-resident Indians recruited last year. Nevertheless, this success of DRDO in recruiting so-called talents is mainly attributed to the recession and lack of high package jobs in the market and only figures in coming years and after recession will tell where country's so-called top talents prefer to move for jobs.
You will definitely be surprised to know that seven IITs together produce on an average 1,500 – 2,000 PhD in an year despite having big structures whereas a single university in America like Princeton University or MIT has intake of 1,500 students for MS and PhD programs in an year. On an average, India produces only 5,000 – 7,000 Science PhD in a year whereas the figure is about 30,000 and more in America. Usually, master and doctoral programme students in the US are paid good stipends during the research and are in great demand for high profile jobs. This keeps the standards and innovation in each sector. Universities as well as industries both marvelously entice students to join higher studies in America.
Therefore, our young researchers after obtaining PhD from IIT and IIS always look for joining post doctoral research or jobs abroad despite there are number of vacancies in teaching and research sectors. Administration opts a foreign degree holder should join or a local PhD pass out should have some years of industrial experience or post doctoral experience in foreign labs whereas as work-environment at home is pathetic in attitude and do not motivate or even allow researchers to implement their ideas properly. A person starts earning US 3,000 - 4,000 dollars on joining job or even research in foreign country, so it is difficult to assume that he or she would prefer to come back to work on a low package and in poor work-environment at home. There are good number of cases when scientists and academic faculties of this country quit jobs to move to foreign countries as there has been large volume of reports on brain drain and talents moving to green pasture. Even employed scientists and faculties from IIT, IISc and top laboratories usually take many year leave to work abroad only for earning good amount of bucks and for the matter of prestige also.
Thursday, February 5, 2009
House Building Advance to Central Government Employees
House Building Advance to Central Government Employees
January 22nd, 2009
1. The Scheme of House Building Advance to Central Government Employees is aimed at providing assistance to the Government employees to construct/acquire house/flats of their own. The scheme was introduced in 1956, as a welfare measure. Ministry of Urban Development & Poverty Alleviation act as the nodal Ministry for the same.
2. House Building Advance is admissible to all those temporary employees also who have rendered 10 years of continuous service. The Ministries/Departments are delegated powers to sanction House Building Advance to their employees in accordance with the House Building Advance Rules.
3.With effect from 27-11-2008, the following provisions of grant of House Building Advance shall be in operation, until further orders:-
(i).The maximum limit for grant of HBA shall be 34 months’ of pay in the pay band subject to a maximum of Rs. 7.50 lakh or cost of the house or the repaying capacity whichever is the least, for new construction/purchase of new house/flat.
(ii).The maximum limit for grant of HBA for enlargement of existing house shall be 34 months’ pay in the pay band subject to a maximum of Rs. 1.80 lakh or cost of the enlargement or repaying capacity, whichever is the least.
(iii).The cost ceiling limit shall be 134 times the pay in the pay band subject to a minimum of Rs.7.50 lakh and a maximum of Rs.30 lakh relaxable up to a maximum of 25% of the revised maximum cost ceiling of Rs.30 lakh.
4. The rate of interest on House Building Advance is between 5% to 9.5% ,depending on the loan amount.
5. The repaying capacity of Govt. servants who have more than 20 years of remaining service has been revised from 35% to 40% of pay. (Pay means pay in the pay band).
6. The salient features of House Building Advance Rules are as follows-
1. ELIGIBILITY
Permanent Government employees.
Temporary Government employees who have rendered at least 10 years continuous service.
To be granted once during the entire service.
If both the husband and wife are Government of India employees and eligible for HBA, it shall be admissible to only one of them.
2. PURPOSE
HBA is granted for:
Constructing a new house on the plot owned by the official or the Official and the Official’s wife/husband jointly.
Purchasing a plot and constructing a house thereon.
Purchasing a plot under Co-operative Schemes and Constructing a house thereon or acquiring house through membership of Co-operative Group Housing Scheme.
Purchasing /construction of house under the Self-Financing scheme of Delhi, Bangalore, U.P., Lucknow etc.
Outright purchase of new ready-built house/flat Housing boards, Development Authorities and other statutory or semi-Government bodies and also from private parties.*
Enlarging living accommodation in an existing house owned by the official or jointly with his/her wife/husband. The total cost of the existing structure (excluding cost of land) and the proposed additions should not exceed the prescribed cost ceiling.
Repayment of loan or advance taken from a Government or HUDCO or Private source even if the construction has already Commenced, subject to certain conditions.
Constructing the residential portion only of the building on a Plot which is earmarked as a shop-cum-residential plot in a Residential colony.
* Private party means registered builders but not private individuals.
3. CONDITIONS:
a) The applicant or spouse or minor child should not already own a house in the town/Urban agglomeration where the house is proposed to be constructed or acquired.
b) The title to the land should be clear. The land may be owned either:
- by the Government employee; or
- jointly by the Government employee and spouse.
c) COST CEILING
134 times of pay in the pay band subject to a minimum of Rs. 7.50 lakh and a maximum of Rs.30 lakh
Administrative Ministry may relax the cost ceiling to 25% of cost ceiling mentioned above in the individual cases on merits.
(Effective from 27th November, 2008)
d) AMOUNT OF ADVANCE:
will be the LEAST of the following:-
(i) 34 times the pay in the pay band.
(ii) The cost of construction.**
(iii) Rs. 7,50,000/- ***
(iv) Repaying Capacity.
** 80% of cost in rural areas.
*** Rs. 1,80,000/- in case of enlargement of existing house.
e) REPAYING CAPACITY:-
Repaying Capacity is computed on the following basis:-
S. No.
Length of remaining service of the applicant.
Repaying Capacity
1.
Retiring after 20 years.
40% of pay @
2.
Retiring after 10 years but not later than 20 years.
40% of pay @ plus 65% of * Retirement Gratuity
3.
Retiring within 10 years
50% of pay @ plus 75% of * Retirement Gratuity.
@ Pay means pay in the pay band
4. DISBURSEMENT OF ADVANCE:
S. No.
Purpose of HBA
Disbursement
(1)
(2)
(3)
(i)
For construction/enlargement (single or double storeyed).
50% -
50%
on execution of mortgage deed
on construction reaching plinth level (Ground Floor).
(ii)
For purchase of land and construction (Single storeyed)
40% or -
actual cost
30% -
30% -
for purchase of plot on execution of agreement and production of Surety Bond.
On execution of Mortgage deed.
On construction reaching plinth level.
(iii)
For purchase of land and construction (Double storeyed)
35% or actual cost
32.5% -
32.5% -
for purchase of plot on execution of agreement and production of Surety bond.
On execution of the mortgage deed.
On construction reaching the plinth level.
(iv)
For purchase of ready built house/flat
100% - in one lumpsum.
(v)
For acquiring flat/house from Co-operative Group Housing Society.
20% -
80% -
Towards purchase of land by the Society.
in suitable installments on receipt of demand (pro-rate basis)
(vi)
For purchase of flat under SFS of Development Authorities etc.
No payment for initial registration Deposit.
May be released in not more than 5 instalments. But the fifth and final instalment should not be less than 10% and is to be released for making final payment.
5. TIME SCHEDULE FOR UTILISATION OF HBA:
S. No.
Purpose
Time limit
(a)
Purchase of registered plot on which construction can commence immediately.
Sale deed to be produced within 2 months.
(b)
Purchase of ready built house.
Acquisition and mortgage to Government to be completed within 3 months.
(c)
Purchase/construction of new flat
Should be utilised within one month of sanction.
6. REPAYMENT OF ADVANCE:
The recovery of advance shall be made in not more than 180 monthly installment and interest shall be recovered thereafter in not more than 60 monthly installments. In case Government servant is retiring before 20 years, repayment may be made in convenient installments and balance may be paid out of Retirement Gratuity.
7. INTEREST
The rate of interest on Housing Building Advance with effect from 1st April, 2003 are as follows:-
S. No.
Amount of Advance sanctioned to a Government Servant
Rate of Interest on HBA (Per Annum).
1.
Upto Rs. 50,000/-
5%
2.
Upto Rs. 1,50,000
6.5%
3.
Upto Rs. 5,00,000/-
8.5%
4.
Upto Rs. 7,50,000/-
9.5%
8.COMMENCEMENT OF RECOVERY:
Construction of a house or enlargement of living accommodation
* From pay for the month following the completion.
Or
The pay for the 18th month after date of payment of the 1st installment, whichever is earlier.
Purchase of land and construction.
* From pay for the month following the completion of the house.
Or
The pay for the 24th month after date of drawl of instalment for purchase of land, whichever is earlier.
COMMENCEMENT OF RECOVERY (CONT’D):
Ready built flat.
* Pay for the month following the month in which advance was drawn.
Purchase of Flat under SFS from Development Authority/Housing Society.
* From the pay for the 18th month after date of payment of 1st instalment.
* The sanctions of HBA should invariable stipulate a higher rate of interest at 2.5% above prescribed rates with the stipulation that if conditions attached to the sanction are fulfilled, rebate of interest to the extent of 2.5% will be allowed.
9. CREATION OF SECOND MORTGAGE:
The Government servants who have obtained HBA from the Government may be permitted to create a second charge on the property provided they obtain prior permission of the Head of the Department and the draft deed of second mortgage is submitted to the Head of the Department for scrutiny. Such a second charge may be created only in respect of loans to be granted for meeting the balance cost of houses/flats by recognised financial institutions.
10.PROVISIONS FOR SAFE RECOVERY OF HOUSE BUILDING ADVANCE:
(i). As a safeguard of the House Building advance, the loanee Government employee has to insure the house immediately on completion or purchase of the house, as the case may be, at his own cost with Life Insurance Corporation of India and its associated units. The house/flat constructed/purchased with the help of House Building advance can also be insured with the private insurance companies which are approved by Insurance Regulatory Development Authority(IRDA). However, the insurance should be taken for a sum not less than the amount of advance against damage by fire, flood and lightning, and has to be continued till the advance together with interest is fully repaid to Government.
(ii).The house constructed/purchased with the help of House Building Advance has also be mortgaged in favour of the President of India within a stipulated time unless an extension of time is granted by the concerned Head of the Department. After completion of the recovery of the advance together with interest thereon, the mortgage deed is re-conveyed in a proper manner.
January 22nd, 2009
1. The Scheme of House Building Advance to Central Government Employees is aimed at providing assistance to the Government employees to construct/acquire house/flats of their own. The scheme was introduced in 1956, as a welfare measure. Ministry of Urban Development & Poverty Alleviation act as the nodal Ministry for the same.
2. House Building Advance is admissible to all those temporary employees also who have rendered 10 years of continuous service. The Ministries/Departments are delegated powers to sanction House Building Advance to their employees in accordance with the House Building Advance Rules.
3.With effect from 27-11-2008, the following provisions of grant of House Building Advance shall be in operation, until further orders:-
(i).The maximum limit for grant of HBA shall be 34 months’ of pay in the pay band subject to a maximum of Rs. 7.50 lakh or cost of the house or the repaying capacity whichever is the least, for new construction/purchase of new house/flat.
(ii).The maximum limit for grant of HBA for enlargement of existing house shall be 34 months’ pay in the pay band subject to a maximum of Rs. 1.80 lakh or cost of the enlargement or repaying capacity, whichever is the least.
(iii).The cost ceiling limit shall be 134 times the pay in the pay band subject to a minimum of Rs.7.50 lakh and a maximum of Rs.30 lakh relaxable up to a maximum of 25% of the revised maximum cost ceiling of Rs.30 lakh.
4. The rate of interest on House Building Advance is between 5% to 9.5% ,depending on the loan amount.
5. The repaying capacity of Govt. servants who have more than 20 years of remaining service has been revised from 35% to 40% of pay. (Pay means pay in the pay band).
6. The salient features of House Building Advance Rules are as follows-
1. ELIGIBILITY
Permanent Government employees.
Temporary Government employees who have rendered at least 10 years continuous service.
To be granted once during the entire service.
If both the husband and wife are Government of India employees and eligible for HBA, it shall be admissible to only one of them.
2. PURPOSE
HBA is granted for:
Constructing a new house on the plot owned by the official or the Official and the Official’s wife/husband jointly.
Purchasing a plot and constructing a house thereon.
Purchasing a plot under Co-operative Schemes and Constructing a house thereon or acquiring house through membership of Co-operative Group Housing Scheme.
Purchasing /construction of house under the Self-Financing scheme of Delhi, Bangalore, U.P., Lucknow etc.
Outright purchase of new ready-built house/flat Housing boards, Development Authorities and other statutory or semi-Government bodies and also from private parties.*
Enlarging living accommodation in an existing house owned by the official or jointly with his/her wife/husband. The total cost of the existing structure (excluding cost of land) and the proposed additions should not exceed the prescribed cost ceiling.
Repayment of loan or advance taken from a Government or HUDCO or Private source even if the construction has already Commenced, subject to certain conditions.
Constructing the residential portion only of the building on a Plot which is earmarked as a shop-cum-residential plot in a Residential colony.
* Private party means registered builders but not private individuals.
3. CONDITIONS:
a) The applicant or spouse or minor child should not already own a house in the town/Urban agglomeration where the house is proposed to be constructed or acquired.
b) The title to the land should be clear. The land may be owned either:
- by the Government employee; or
- jointly by the Government employee and spouse.
c) COST CEILING
134 times of pay in the pay band subject to a minimum of Rs. 7.50 lakh and a maximum of Rs.30 lakh
Administrative Ministry may relax the cost ceiling to 25% of cost ceiling mentioned above in the individual cases on merits.
(Effective from 27th November, 2008)
d) AMOUNT OF ADVANCE:
will be the LEAST of the following:-
(i) 34 times the pay in the pay band.
(ii) The cost of construction.**
(iii) Rs. 7,50,000/- ***
(iv) Repaying Capacity.
** 80% of cost in rural areas.
*** Rs. 1,80,000/- in case of enlargement of existing house.
e) REPAYING CAPACITY:-
Repaying Capacity is computed on the following basis:-
S. No.
Length of remaining service of the applicant.
Repaying Capacity
1.
Retiring after 20 years.
40% of pay @
2.
Retiring after 10 years but not later than 20 years.
40% of pay @ plus 65% of * Retirement Gratuity
3.
Retiring within 10 years
50% of pay @ plus 75% of * Retirement Gratuity.
@ Pay means pay in the pay band
4. DISBURSEMENT OF ADVANCE:
S. No.
Purpose of HBA
Disbursement
(1)
(2)
(3)
(i)
For construction/enlargement (single or double storeyed).
50% -
50%
on execution of mortgage deed
on construction reaching plinth level (Ground Floor).
(ii)
For purchase of land and construction (Single storeyed)
40% or -
actual cost
30% -
30% -
for purchase of plot on execution of agreement and production of Surety Bond.
On execution of Mortgage deed.
On construction reaching plinth level.
(iii)
For purchase of land and construction (Double storeyed)
35% or actual cost
32.5% -
32.5% -
for purchase of plot on execution of agreement and production of Surety bond.
On execution of the mortgage deed.
On construction reaching the plinth level.
(iv)
For purchase of ready built house/flat
100% - in one lumpsum.
(v)
For acquiring flat/house from Co-operative Group Housing Society.
20% -
80% -
Towards purchase of land by the Society.
in suitable installments on receipt of demand (pro-rate basis)
(vi)
For purchase of flat under SFS of Development Authorities etc.
No payment for initial registration Deposit.
May be released in not more than 5 instalments. But the fifth and final instalment should not be less than 10% and is to be released for making final payment.
5. TIME SCHEDULE FOR UTILISATION OF HBA:
S. No.
Purpose
Time limit
(a)
Purchase of registered plot on which construction can commence immediately.
Sale deed to be produced within 2 months.
(b)
Purchase of ready built house.
Acquisition and mortgage to Government to be completed within 3 months.
(c)
Purchase/construction of new flat
Should be utilised within one month of sanction.
6. REPAYMENT OF ADVANCE:
The recovery of advance shall be made in not more than 180 monthly installment and interest shall be recovered thereafter in not more than 60 monthly installments. In case Government servant is retiring before 20 years, repayment may be made in convenient installments and balance may be paid out of Retirement Gratuity.
7. INTEREST
The rate of interest on Housing Building Advance with effect from 1st April, 2003 are as follows:-
S. No.
Amount of Advance sanctioned to a Government Servant
Rate of Interest on HBA (Per Annum).
1.
Upto Rs. 50,000/-
5%
2.
Upto Rs. 1,50,000
6.5%
3.
Upto Rs. 5,00,000/-
8.5%
4.
Upto Rs. 7,50,000/-
9.5%
8.COMMENCEMENT OF RECOVERY:
Construction of a house or enlargement of living accommodation
* From pay for the month following the completion.
Or
The pay for the 18th month after date of payment of the 1st installment, whichever is earlier.
Purchase of land and construction.
* From pay for the month following the completion of the house.
Or
The pay for the 24th month after date of drawl of instalment for purchase of land, whichever is earlier.
COMMENCEMENT OF RECOVERY (CONT’D):
Ready built flat.
* Pay for the month following the month in which advance was drawn.
Purchase of Flat under SFS from Development Authority/Housing Society.
* From the pay for the 18th month after date of payment of 1st instalment.
* The sanctions of HBA should invariable stipulate a higher rate of interest at 2.5% above prescribed rates with the stipulation that if conditions attached to the sanction are fulfilled, rebate of interest to the extent of 2.5% will be allowed.
9. CREATION OF SECOND MORTGAGE:
The Government servants who have obtained HBA from the Government may be permitted to create a second charge on the property provided they obtain prior permission of the Head of the Department and the draft deed of second mortgage is submitted to the Head of the Department for scrutiny. Such a second charge may be created only in respect of loans to be granted for meeting the balance cost of houses/flats by recognised financial institutions.
10.PROVISIONS FOR SAFE RECOVERY OF HOUSE BUILDING ADVANCE:
(i). As a safeguard of the House Building advance, the loanee Government employee has to insure the house immediately on completion or purchase of the house, as the case may be, at his own cost with Life Insurance Corporation of India and its associated units. The house/flat constructed/purchased with the help of House Building advance can also be insured with the private insurance companies which are approved by Insurance Regulatory Development Authority(IRDA). However, the insurance should be taken for a sum not less than the amount of advance against damage by fire, flood and lightning, and has to be continued till the advance together with interest is fully repaid to Government.
(ii).The house constructed/purchased with the help of House Building Advance has also be mortgaged in favour of the President of India within a stipulated time unless an extension of time is granted by the concerned Head of the Department. After completion of the recovery of the advance together with interest thereon, the mortgage deed is re-conveyed in a proper manner.
Modification in the Travelling Allowance - New order dated 22.01.09
Modification in the Travelling Allowance - New order dated 22.01.09
January 24th, 2009 At last CG Officers working in field formations could breath easy after this new stand taken by the department on TA Rules.
As you are all aware of the modified Travelling Allowance Rules as per Office Memorandum dated 23.09.08 consequent on Sixth pay commission recommendations, which was based on reimbursement principle (i.e) Officers have to produce receipts for the amount spent on accommodation, food, transportation etc.
This principle may be fine for the officers who travel to a cities, as the charges for lodging, transportation etc could be claimed at actuals subject to a maximum ceiling.
However, Officers who had to travel on duty to remote places like villages sea shores were really put to hardship because they could not get the receipts for the amount spent by them for food as it would be meaningless to ask for serially numbered bill from a small Hotelier or “Dhabawala” in those places. Even for those who travel long distances in trains in which fare is not inclusive of food, it would be very difficult to get receipts for food from pantry car or railway platform salesmen.
Now, this hardship has been done away with by the issue of new Ofice Memorandum dated 22.01.2009, as the Govt has decided to sanction daily allowance on tour, based on earlir office memorandum dated 17.04.1998 in case the officers opted to claim slab rate based daily allowance instead of reimbursement based travelling allowance prescribed vide office memorandum dated 23.09.08.
In a nutshell, this new order provides the choice to the Officers for claiming the Travelling allowance either based on old TA rates as per the office memo dated 17.04.98 or at actuals using the bills for food etc as per the office memorandum dated 23.09.08. However, Officers can not mix up these two orders for a single tour.
January 24th, 2009 At last CG Officers working in field formations could breath easy after this new stand taken by the department on TA Rules.
As you are all aware of the modified Travelling Allowance Rules as per Office Memorandum dated 23.09.08 consequent on Sixth pay commission recommendations, which was based on reimbursement principle (i.e) Officers have to produce receipts for the amount spent on accommodation, food, transportation etc.
This principle may be fine for the officers who travel to a cities, as the charges for lodging, transportation etc could be claimed at actuals subject to a maximum ceiling.
However, Officers who had to travel on duty to remote places like villages sea shores were really put to hardship because they could not get the receipts for the amount spent by them for food as it would be meaningless to ask for serially numbered bill from a small Hotelier or “Dhabawala” in those places. Even for those who travel long distances in trains in which fare is not inclusive of food, it would be very difficult to get receipts for food from pantry car or railway platform salesmen.
Now, this hardship has been done away with by the issue of new Ofice Memorandum dated 22.01.2009, as the Govt has decided to sanction daily allowance on tour, based on earlir office memorandum dated 17.04.1998 in case the officers opted to claim slab rate based daily allowance instead of reimbursement based travelling allowance prescribed vide office memorandum dated 23.09.08.
In a nutshell, this new order provides the choice to the Officers for claiming the Travelling allowance either based on old TA rates as per the office memo dated 17.04.98 or at actuals using the bills for food etc as per the office memorandum dated 23.09.08. However, Officers can not mix up these two orders for a single tour.
Sunday, January 25, 2009
Expected DA for Central Government Employees from 1.1.2009 - 22%
Expected DA for Central Government Employees from 1.1.2009 - 22%
All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of November, 2008 remained stationary at 148 (one hundred and fortyeight).
During November, 2008, the index recorded maximum increase of 5 points each in Quilon and Madurai centres, 3 points each in Mysore, Ernakulam, Bhilwara and Coonoor centres, 2 points in 13 centres and 1 point in 14 centres. The index decreased by 1 point in 19 centres and 2 points each in Jalandhar, Nasik, Bhavnagar, Siliguri, Asansol and Howrah centres, while in remaining 20 centres the index remained stationary.
The maximum increase of 5 points in Quilon centre is mainly due to Fish, Fresh Vegetable Items and Washing Soap etc., while that in Madurai centre is mainly due to Rice and Vegetable Items. The increase of 3 points each in Mysore, Ernakulam, Bhilwara and Coonoor centres is due to Rice, Onion, Fish Fresh, Vegetable Items, Tea Readymade, Toilet Soap etc. While the decrease of 2 points each in Jalandhar, Nasik, Bhavnagar, Siliguri, Asansol and Howrah centres is due to decrease in the prices of Vegetable items, Mustard Oil, Groundnut Oil etc.
The point to point rate of inflation for the month of November, 2008 remained constant 10.45% at the level of October, 2008.
The CPI-IW for December, 2008 will be released on the last working day of the next month, i.e. 30th January, 2009.
All India Consumer Price Index Industrial Workers BASE YEAR 2001 = 100
Month Base year 2201=100 Total of 12 Months 12 Month Average % Increase over 115.76 for DA
Nov2007 134 1562 130.17 12.45
Dec2007 134 1569 130.75 12.95
Jan-2008 134 1576 131.33 13.45
Feb-2008 135 1583 131.92 13.96
Mar2008 137 1593 132.75 14.68
Apr-2008 138 1603 133.58 15.39
May2008 139 1613 134.42 16.12
Jun-2008 140 1623 135.25 16.84
Jul-2008 143 1634 136.17 17.63
Aug2008 145 1646 137.17 18.50
Sep-2008 146 1659 138.25 19.43
Oct-2008 148 1673 139.42 20.44
Expected Dearness Allowance for Central Government Employees from 1.1.2009 - 22% (As per Swamy's News - Jan-2009)
All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of November, 2008 remained stationary at 148 (one hundred and fortyeight).
During November, 2008, the index recorded maximum increase of 5 points each in Quilon and Madurai centres, 3 points each in Mysore, Ernakulam, Bhilwara and Coonoor centres, 2 points in 13 centres and 1 point in 14 centres. The index decreased by 1 point in 19 centres and 2 points each in Jalandhar, Nasik, Bhavnagar, Siliguri, Asansol and Howrah centres, while in remaining 20 centres the index remained stationary.
The maximum increase of 5 points in Quilon centre is mainly due to Fish, Fresh Vegetable Items and Washing Soap etc., while that in Madurai centre is mainly due to Rice and Vegetable Items. The increase of 3 points each in Mysore, Ernakulam, Bhilwara and Coonoor centres is due to Rice, Onion, Fish Fresh, Vegetable Items, Tea Readymade, Toilet Soap etc. While the decrease of 2 points each in Jalandhar, Nasik, Bhavnagar, Siliguri, Asansol and Howrah centres is due to decrease in the prices of Vegetable items, Mustard Oil, Groundnut Oil etc.
The point to point rate of inflation for the month of November, 2008 remained constant 10.45% at the level of October, 2008.
The CPI-IW for December, 2008 will be released on the last working day of the next month, i.e. 30th January, 2009.
All India Consumer Price Index Industrial Workers BASE YEAR 2001 = 100
Month Base year 2201=100 Total of 12 Months 12 Month Average % Increase over 115.76 for DA
Nov2007 134 1562 130.17 12.45
Dec2007 134 1569 130.75 12.95
Jan-2008 134 1576 131.33 13.45
Feb-2008 135 1583 131.92 13.96
Mar2008 137 1593 132.75 14.68
Apr-2008 138 1603 133.58 15.39
May2008 139 1613 134.42 16.12
Jun-2008 140 1623 135.25 16.84
Jul-2008 143 1634 136.17 17.63
Aug2008 145 1646 137.17 18.50
Sep-2008 146 1659 138.25 19.43
Oct-2008 148 1673 139.42 20.44
Expected Dearness Allowance for Central Government Employees from 1.1.2009 - 22% (As per Swamy's News - Jan-2009)
Anomaly Committee to settle the Anomalies arising out of the implentation of the 6th CPC recommendations.
Setting up of Anomaly Committee to settle the Anomalies arising out of the implentation of the 6th CPC recommendations.
The Government has released orders for constituting National Anomaly Committee and Departmental Anomaly Committees for settlement of anomalies arising out of implementation of 6th CPC recommendations.
No.11/2/2008-JCA
OFFICE MEMORANDUM
Dated the 12th January, 2009
Subject:- Setting up of Anomaly Committee to settle the Anomalies arising out of the implentationof the 6th CPC recommendations.
Definition of AnomalyAnomaly will inculde the folllwing cases:
(a) Where the Official Side and the Staff Side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the 6th CPC itself without the Commissionassigning any reason: and
(b) Where the maximum of the revised scale is less than the amount at which one is entitled to be fixed except in those cases where the same is as a result of modified fixation formula adopted by theGovernment and
(c) Where the amount of revised allowance is less than the existing rate.
(2) Composition: There will be 2 levels of Anomaly Committees, National and Departmental, consisting of reprensentativesof the Official Side and the Staff Side of the National Council and the Departmental Council respectively.
(3) The Departmental Anomaly Committee may be chaired by the Additional Secretary (Admn.) or the JointSecretary (Admn.), if there is no post of Additional Secretary (Admn.). Financial Adviser of the Ministry/Departmentshall be one of the Members of the Departmental Anomaly Committee.
(4) The National Anomaly Committee will deal with anomalies common to two or more Departments and inrespect of common categories of employees. The Departmental Anomaly Committee will deal with anomaliespertaining exclusively to the Department concerned and having no repercussions on the employees of anotherMinistry/Department in the opinion of the Financial Adviser. The items already taken up by the Fast Track Committeewill not be considered by the Anomaly Committee.
(5) The Anomaly Committee shall receive anomalies through Secretary, Staff Side of respective Council upto six months from the date of its constitution an it will finally dispose of all the anomalies within a period of one yearfrom the date of its constitution. Any recommendations of the Anomaly Committee to resolve the anomaly shallto the approval of the Govenment.
(6) Cases where there is a dispute about the definition of "anomaly" and those where there is a disagreementthe staff side and the official side on the anomaly will be referred to and "Arbitrator" to be appointed out of apanel of names proposed by the two sides. However, this arbitration will not be a part of the JCM scheme.
(7) The Arbitrator so appointed shall consider the disputed cases arising in the Anomaly Committees at the National as well as Departmental level.
(8) Orders regarding appointment of the Arbitrator and constitution of Anomaly Committee at NationalLevel will be issued separately.
(9) All Ministries/Departments are accordingly requested to take urgent action to set up the Anomaly Committeesfor settlement of anomalies arising out of implementation of the 6th CPC recommendations as stipulated above.
The Government has released orders for constituting National Anomaly Committee and Departmental Anomaly Committees for settlement of anomalies arising out of implementation of 6th CPC recommendations.
No.11/2/2008-JCA
OFFICE MEMORANDUM
Dated the 12th January, 2009
Subject:- Setting up of Anomaly Committee to settle the Anomalies arising out of the implentationof the 6th CPC recommendations.
Definition of AnomalyAnomaly will inculde the folllwing cases:
(a) Where the Official Side and the Staff Side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the 6th CPC itself without the Commissionassigning any reason: and
(b) Where the maximum of the revised scale is less than the amount at which one is entitled to be fixed except in those cases where the same is as a result of modified fixation formula adopted by theGovernment and
(c) Where the amount of revised allowance is less than the existing rate.
(2) Composition: There will be 2 levels of Anomaly Committees, National and Departmental, consisting of reprensentativesof the Official Side and the Staff Side of the National Council and the Departmental Council respectively.
(3) The Departmental Anomaly Committee may be chaired by the Additional Secretary (Admn.) or the JointSecretary (Admn.), if there is no post of Additional Secretary (Admn.). Financial Adviser of the Ministry/Departmentshall be one of the Members of the Departmental Anomaly Committee.
(4) The National Anomaly Committee will deal with anomalies common to two or more Departments and inrespect of common categories of employees. The Departmental Anomaly Committee will deal with anomaliespertaining exclusively to the Department concerned and having no repercussions on the employees of anotherMinistry/Department in the opinion of the Financial Adviser. The items already taken up by the Fast Track Committeewill not be considered by the Anomaly Committee.
(5) The Anomaly Committee shall receive anomalies through Secretary, Staff Side of respective Council upto six months from the date of its constitution an it will finally dispose of all the anomalies within a period of one yearfrom the date of its constitution. Any recommendations of the Anomaly Committee to resolve the anomaly shallto the approval of the Govenment.
(6) Cases where there is a dispute about the definition of "anomaly" and those where there is a disagreementthe staff side and the official side on the anomaly will be referred to and "Arbitrator" to be appointed out of apanel of names proposed by the two sides. However, this arbitration will not be a part of the JCM scheme.
(7) The Arbitrator so appointed shall consider the disputed cases arising in the Anomaly Committees at the National as well as Departmental level.
(8) Orders regarding appointment of the Arbitrator and constitution of Anomaly Committee at NationalLevel will be issued separately.
(9) All Ministries/Departments are accordingly requested to take urgent action to set up the Anomaly Committeesfor settlement of anomalies arising out of implementation of the 6th CPC recommendations as stipulated above.
House Building Advance to Central Government Employees
House Building Advance to Central Government Employees
1. The Scheme of House Building Advance to Central Government Employees is aimed at providing assistance to the Government employees to construct/acquire house/flats of their own. The scheme was introduced in 1956, as a welfare measure. Ministry of Urban Development & Poverty Alleviation act as the nodal Ministry for the same.
2. House Building Advance is admissible to all those temporary employees also who have rendered 10 years of continuous service. The Ministries/Departments are delegated powers to sanction House Building Advance to their employees in accordance with the House Building Advance Rules.
3.With effect from 27-11-2008, the following provisions of grant of House Building Advance shall be in operation, until further orders:-
(i).The maximum limit for grant of HBA shall be 34 months' of pay in the pay band subject to a maximum of Rs. 7.50 lakh or cost of the house or the repaying capacity whichever is the least, for new construction/purchase of new house/flat.
(ii).The maximum limit for grant of HBA for enlargement of existing house shall be 34 months' pay in the pay band subject to a maximum of Rs. 1.80 lakh or cost of the enlargement or repaying capacity, whichever is the least.
(iii).The cost ceiling limit shall be 134 times the pay in the pay band subject to a minimum of Rs.7.50 lakh and a maximum of Rs.30 lakh relaxable up to a maximum of 25% of the revised maximum cost ceiling of Rs.30 lakh.
4. The rate of interest on House Building Advance is between 5% to 9.5% ,depending on the loan amount.
5. The repaying capacity of Govt. servants who have more than 20 years of remaining service has been revised from 35% to 40% of pay. (Pay means pay in the pay band).
6. The salient features of House Building Advance Rules are as follows-
1. ELIGIBILITY
Permanent Government employees.
Temporary Government employees who have rendered at least 10 years continuous service.
To be granted once during the entire service.
If both the husband and wife are Government of India employees and eligible for HBA, it shall be admissible to only one of them.
2. PURPOSE
HBA is granted for:
Constructing a new house on the plot owned by the official or the Official and the Official's wife/husband jointly.
Purchasing a plot and constructing a house thereon.
Purchasing a plot under Co-operative Schemes and Constructing a house thereon or acquiring house through membership of Co-operative Group Housing Scheme.
Purchasing /construction of house under the Self-Financing scheme of Delhi, Bangalore, U.P., Lucknow etc.
Outright purchase of new ready-built house/flat Housing boards, Development Authorities and other statutory or semi-Government bodies and also from private parties.*
Enlarging living accommodation in an existing house owned by the official or jointly with his/her wife/husband. The total cost of the existing structure (excluding cost of land) and the proposed additions should not exceed the prescribed cost ceiling.
Repayment of loan or advance taken from a Government or HUDCO or Private source even if the construction has already Commenced, subject to certain conditions.
Constructing the residential portion only of the building on a Plot which is earmarked as a shop-cum-residential plot in a Residential colony.
* Private party means registered builders but not private individuals.
3. CONDITIONS:
a) The applicant or spouse or minor child should not already own a house in the town/Urban agglomeration where the house is proposed to be constructed or acquired.
b) The title to the land should be clear. The land may be owned either:
- by the Government employee; or
- jointly by the Government employee and spouse.
c) COST CEILING
134 times of pay in the pay band subject to a minimum of Rs. 7.50 lakh and a maximum of Rs.30 lakh
Administrative Ministry may relax the cost ceiling to 25% of cost ceiling mentioned above in the individual cases on merits.
(Effective from 27th November, 2008)
d) AMOUNT OF ADVANCE:
will be the LEAST of the following:-
(i) 34 times the pay in the pay band.
(ii) The cost of construction.**
(iii) Rs. 7,50,000/- ***
(iv) Repaying Capacity.
** 80% of cost in rural areas.
*** Rs. 1,80,000/- in case of enlargement of existing house.
e) REPAYING CAPACITY:-
Repaying Capacity is computed on the following basis:-
S. No.
Length of remaining service of the applicant.
Repaying Capacity
1.
Retiring after 20 years.
40% of pay @
2.
Retiring after 10 years but not later than 20 years.
40% of pay @ plus 65% of * Retirement Gratuity
3.
Retiring within 10 years
50% of pay @ plus 75% of * Retirement Gratuity.
@ Pay means pay in the pay band
4. DISBURSEMENT OF ADVANCE:
S. No.
Purpose of HBA
Disbursement
(1)
(2)
(3)
(i)
For construction/enlargement (single or double storeyed).
50% -
50%
on execution of mortgage deed
on construction reaching plinth level (Ground Floor).
(ii)
For purchase of land and construction (Single storeyed)
40% or -
actual cost
30% -
30% -
for purchase of plot on execution of agreement and production of Surety Bond.
On execution of Mortgage deed.
On construction reaching plinth level.
(iii)
For purchase of land and construction (Double storeyed)
35% or actual cost
32.5% -
32.5% -
for purchase of plot on execution of agreement and production of Surety bond.
On execution of the mortgage deed.
On construction reaching the plinth level.
(iv)
For purchase of ready built house/flat
100% - in one lumpsum.
(v)
For acquiring flat/house from Co-operative Group Housing Society.
20% -
80% -
Towards purchase of land by the Society.
in suitable installments on receipt of demand (pro-rate basis)
(vi)
For purchase of flat under SFS of Development Authorities etc.
No payment for initial registration Deposit.
May be released in not more than 5 instalments. But the fifth and final instalment should not be less than 10% and is to be released for making final payment.
5. TIME SCHEDULE FOR UTILISATION OF HBA:
S. No.
Purpose
Time limit
(a)
Purchase of registered plot on which construction can commence immediately.
Sale deed to be produced within 2 months.
(b)
Purchase of ready built house.
Acquisition and mortgage to Government to be completed within 3 months.
(c)
Purchase/construction of new flat
Should be utilised within one month of sanction.
6. REPAYMENT OF ADVANCE:
The recovery of advance shall be made in not more than 180 monthly installment and interest shall be recovered thereafter in not more than 60 monthly installments. In case Government servant is retiring before 20 years, repayment may be made in convenient installments and balance may be paid out of Retirement Gratuity.
7. INTEREST
The rate of interest on Housing Building Advance with effect from 1st April, 2003 are as follows:-
S. No.
Amount of Advance sanctioned to a Government Servant
Rate of Interest on HBA (Per Annum).
1.
Upto Rs. 50,000/-
5%
2.
Upto Rs. 1,50,000
6.5%
3.
Upto Rs. 5,00,000/-
8.5%
4.
Upto Rs. 7,50,000/-
9.5%
8.COMMENCEMENT OF RECOVERY:
Construction of a house or enlargement of living accommodation
* From pay for the month following the completion.
Or
The pay for the 18th month after date of payment of the 1st installment, whichever is earlier.
Purchase of land and construction.
* From pay for the month following the completion of the house.
Or
The pay for the 24th month after date of drawl of instalment for purchase of land, whichever is earlier.
COMMENCEMENT OF RECOVERY (CONT'D):
Ready built flat.
* Pay for the month following the month in which advance was drawn.
Purchase of Flat under SFS from Development Authority/Housing Society.
* From the pay for the 18th month after date of payment of 1st instalment.
* The sanctions of HBA should invariable stipulate a higher rate of interest at 2.5% above prescribed rates with the stipulation that if conditions attached to the sanction are fulfilled, rebate of interest to the extent of 2.5% will be allowed.
9. CREATION OF SECOND MORTGAGE:
The Government servants who have obtained HBA from the Government may be permitted to create a second charge on the property provided they obtain prior permission of the Head of the Department and the draft deed of second mortgage is submitted to the Head of the Department for scrutiny. Such a second charge may be created only in respect of loans to be granted for meeting the balance cost of houses/flats by recognised financial institutions.
10.PROVISIONS FOR SAFE RECOVERY OF HOUSE BUILDING ADVANCE:
(i). As a safeguard of the House Building advance, the loanee Government employee has to insure the house immediately on completion or purchase of the house, as the case may be, at his own cost with Life Insurance Corporation of India and its associated units. The house/flat constructed/purchased with the help of House Building advance can also be insured with the private insurance companies which are approved by Insurance Regulatory Development Authority(IRDA). However, the insurance should be taken for a sum not less than the amount of advance against damage by fire, flood and lightning, and has to be continued till the advance together with interest is fully repaid to Government.
(ii).The house constructed/purchased with the help of House Building Advance has also be mortgaged in favour of the President of India within a stipulated time unless an extension of time is granted by the concerned Head of the Department. After completion of the recovery of the advance together with interest thereon, the mortgage deed is re-conveyed in a proper manner.
1. The Scheme of House Building Advance to Central Government Employees is aimed at providing assistance to the Government employees to construct/acquire house/flats of their own. The scheme was introduced in 1956, as a welfare measure. Ministry of Urban Development & Poverty Alleviation act as the nodal Ministry for the same.
2. House Building Advance is admissible to all those temporary employees also who have rendered 10 years of continuous service. The Ministries/Departments are delegated powers to sanction House Building Advance to their employees in accordance with the House Building Advance Rules.
3.With effect from 27-11-2008, the following provisions of grant of House Building Advance shall be in operation, until further orders:-
(i).The maximum limit for grant of HBA shall be 34 months' of pay in the pay band subject to a maximum of Rs. 7.50 lakh or cost of the house or the repaying capacity whichever is the least, for new construction/purchase of new house/flat.
(ii).The maximum limit for grant of HBA for enlargement of existing house shall be 34 months' pay in the pay band subject to a maximum of Rs. 1.80 lakh or cost of the enlargement or repaying capacity, whichever is the least.
(iii).The cost ceiling limit shall be 134 times the pay in the pay band subject to a minimum of Rs.7.50 lakh and a maximum of Rs.30 lakh relaxable up to a maximum of 25% of the revised maximum cost ceiling of Rs.30 lakh.
4. The rate of interest on House Building Advance is between 5% to 9.5% ,depending on the loan amount.
5. The repaying capacity of Govt. servants who have more than 20 years of remaining service has been revised from 35% to 40% of pay. (Pay means pay in the pay band).
6. The salient features of House Building Advance Rules are as follows-
1. ELIGIBILITY
Permanent Government employees.
Temporary Government employees who have rendered at least 10 years continuous service.
To be granted once during the entire service.
If both the husband and wife are Government of India employees and eligible for HBA, it shall be admissible to only one of them.
2. PURPOSE
HBA is granted for:
Constructing a new house on the plot owned by the official or the Official and the Official's wife/husband jointly.
Purchasing a plot and constructing a house thereon.
Purchasing a plot under Co-operative Schemes and Constructing a house thereon or acquiring house through membership of Co-operative Group Housing Scheme.
Purchasing /construction of house under the Self-Financing scheme of Delhi, Bangalore, U.P., Lucknow etc.
Outright purchase of new ready-built house/flat Housing boards, Development Authorities and other statutory or semi-Government bodies and also from private parties.*
Enlarging living accommodation in an existing house owned by the official or jointly with his/her wife/husband. The total cost of the existing structure (excluding cost of land) and the proposed additions should not exceed the prescribed cost ceiling.
Repayment of loan or advance taken from a Government or HUDCO or Private source even if the construction has already Commenced, subject to certain conditions.
Constructing the residential portion only of the building on a Plot which is earmarked as a shop-cum-residential plot in a Residential colony.
* Private party means registered builders but not private individuals.
3. CONDITIONS:
a) The applicant or spouse or minor child should not already own a house in the town/Urban agglomeration where the house is proposed to be constructed or acquired.
b) The title to the land should be clear. The land may be owned either:
- by the Government employee; or
- jointly by the Government employee and spouse.
c) COST CEILING
134 times of pay in the pay band subject to a minimum of Rs. 7.50 lakh and a maximum of Rs.30 lakh
Administrative Ministry may relax the cost ceiling to 25% of cost ceiling mentioned above in the individual cases on merits.
(Effective from 27th November, 2008)
d) AMOUNT OF ADVANCE:
will be the LEAST of the following:-
(i) 34 times the pay in the pay band.
(ii) The cost of construction.**
(iii) Rs. 7,50,000/- ***
(iv) Repaying Capacity.
** 80% of cost in rural areas.
*** Rs. 1,80,000/- in case of enlargement of existing house.
e) REPAYING CAPACITY:-
Repaying Capacity is computed on the following basis:-
S. No.
Length of remaining service of the applicant.
Repaying Capacity
1.
Retiring after 20 years.
40% of pay @
2.
Retiring after 10 years but not later than 20 years.
40% of pay @ plus 65% of * Retirement Gratuity
3.
Retiring within 10 years
50% of pay @ plus 75% of * Retirement Gratuity.
@ Pay means pay in the pay band
4. DISBURSEMENT OF ADVANCE:
S. No.
Purpose of HBA
Disbursement
(1)
(2)
(3)
(i)
For construction/enlargement (single or double storeyed).
50% -
50%
on execution of mortgage deed
on construction reaching plinth level (Ground Floor).
(ii)
For purchase of land and construction (Single storeyed)
40% or -
actual cost
30% -
30% -
for purchase of plot on execution of agreement and production of Surety Bond.
On execution of Mortgage deed.
On construction reaching plinth level.
(iii)
For purchase of land and construction (Double storeyed)
35% or actual cost
32.5% -
32.5% -
for purchase of plot on execution of agreement and production of Surety bond.
On execution of the mortgage deed.
On construction reaching the plinth level.
(iv)
For purchase of ready built house/flat
100% - in one lumpsum.
(v)
For acquiring flat/house from Co-operative Group Housing Society.
20% -
80% -
Towards purchase of land by the Society.
in suitable installments on receipt of demand (pro-rate basis)
(vi)
For purchase of flat under SFS of Development Authorities etc.
No payment for initial registration Deposit.
May be released in not more than 5 instalments. But the fifth and final instalment should not be less than 10% and is to be released for making final payment.
5. TIME SCHEDULE FOR UTILISATION OF HBA:
S. No.
Purpose
Time limit
(a)
Purchase of registered plot on which construction can commence immediately.
Sale deed to be produced within 2 months.
(b)
Purchase of ready built house.
Acquisition and mortgage to Government to be completed within 3 months.
(c)
Purchase/construction of new flat
Should be utilised within one month of sanction.
6. REPAYMENT OF ADVANCE:
The recovery of advance shall be made in not more than 180 monthly installment and interest shall be recovered thereafter in not more than 60 monthly installments. In case Government servant is retiring before 20 years, repayment may be made in convenient installments and balance may be paid out of Retirement Gratuity.
7. INTEREST
The rate of interest on Housing Building Advance with effect from 1st April, 2003 are as follows:-
S. No.
Amount of Advance sanctioned to a Government Servant
Rate of Interest on HBA (Per Annum).
1.
Upto Rs. 50,000/-
5%
2.
Upto Rs. 1,50,000
6.5%
3.
Upto Rs. 5,00,000/-
8.5%
4.
Upto Rs. 7,50,000/-
9.5%
8.COMMENCEMENT OF RECOVERY:
Construction of a house or enlargement of living accommodation
* From pay for the month following the completion.
Or
The pay for the 18th month after date of payment of the 1st installment, whichever is earlier.
Purchase of land and construction.
* From pay for the month following the completion of the house.
Or
The pay for the 24th month after date of drawl of instalment for purchase of land, whichever is earlier.
COMMENCEMENT OF RECOVERY (CONT'D):
Ready built flat.
* Pay for the month following the month in which advance was drawn.
Purchase of Flat under SFS from Development Authority/Housing Society.
* From the pay for the 18th month after date of payment of 1st instalment.
* The sanctions of HBA should invariable stipulate a higher rate of interest at 2.5% above prescribed rates with the stipulation that if conditions attached to the sanction are fulfilled, rebate of interest to the extent of 2.5% will be allowed.
9. CREATION OF SECOND MORTGAGE:
The Government servants who have obtained HBA from the Government may be permitted to create a second charge on the property provided they obtain prior permission of the Head of the Department and the draft deed of second mortgage is submitted to the Head of the Department for scrutiny. Such a second charge may be created only in respect of loans to be granted for meeting the balance cost of houses/flats by recognised financial institutions.
10.PROVISIONS FOR SAFE RECOVERY OF HOUSE BUILDING ADVANCE:
(i). As a safeguard of the House Building advance, the loanee Government employee has to insure the house immediately on completion or purchase of the house, as the case may be, at his own cost with Life Insurance Corporation of India and its associated units. The house/flat constructed/purchased with the help of House Building advance can also be insured with the private insurance companies which are approved by Insurance Regulatory Development Authority(IRDA). However, the insurance should be taken for a sum not less than the amount of advance against damage by fire, flood and lightning, and has to be continued till the advance together with interest is fully repaid to Government.
(ii).The house constructed/purchased with the help of House Building Advance has also be mortgaged in favour of the President of India within a stipulated time unless an extension of time is granted by the concerned Head of the Department. After completion of the recovery of the advance together with interest thereon, the mortgage deed is re-conveyed in a proper manner.
Thursday, January 22, 2009
'Govt to take decision on pending armed forces' pay issues'
'Govt to take decision on pending armed forces' pay issues'
New Delhi
Asserting that"sincere" efforts to resolve pay anomalies were being made, the government today assured the armed forces that it would soon take a decision on the pending issues relating to the 6th Pay Commission.
The government has already taken decisions on the"genuine grievances" of the defence personnel"one after the other"even after the Pay Commission report was implemented, Defence Minister A K Antony told media."By now it must be clear to everyone on the sincerity of the government (on pay issues).
The remaining issues, we are examining."Because, we are very clear and particular that we must give the best available equipment to the armed forces on the one side, and regarding their welfare and their pay, whatever is their genuine demand, we are always willing to give,"he said.
The Prime Minister's Office had earlier this month written to the Defence Ministry on the government deciding to retain 70 per cent pensionary weightage to the jawans.It had also said that the government would accord Pay Band-4 salaries to Lieutenant Colonels and their equivalents in the Navy and the Air Force, provided they were in"combat or ready-to-combat"roles.
This PMO decision was based on recommendations of a ministerial committee headed by External Affairs Minister Pranab Mukherjee and with Antony and Home Minister P Chidambaram as members.
New Delhi
Asserting that"sincere" efforts to resolve pay anomalies were being made, the government today assured the armed forces that it would soon take a decision on the pending issues relating to the 6th Pay Commission.
The government has already taken decisions on the"genuine grievances" of the defence personnel"one after the other"even after the Pay Commission report was implemented, Defence Minister A K Antony told media."By now it must be clear to everyone on the sincerity of the government (on pay issues).
The remaining issues, we are examining."Because, we are very clear and particular that we must give the best available equipment to the armed forces on the one side, and regarding their welfare and their pay, whatever is their genuine demand, we are always willing to give,"he said.
The Prime Minister's Office had earlier this month written to the Defence Ministry on the government deciding to retain 70 per cent pensionary weightage to the jawans.It had also said that the government would accord Pay Band-4 salaries to Lieutenant Colonels and their equivalents in the Navy and the Air Force, provided they were in"combat or ready-to-combat"roles.
This PMO decision was based on recommendations of a ministerial committee headed by External Affairs Minister Pranab Mukherjee and with Antony and Home Minister P Chidambaram as members.
Can’t afford gratuity, hike: private schools
Can’t afford gratuity, hike: private schools
New Delhi Private schools fear they might not be in a position to pay the enhanced pay scales of teachers for very long. Under the Delhi Education Act, however, private schools have to pay the same scale as government schools so that they are not derecognised.
The Sixth Pay Commission would have wide-ranging effects on the financial health of private schools. From a direct impact on salaries and arrears, the Pay Commission will also signal increased maternity leave and special child care leave of two years and a hiked gratuity payment of Rs 10 lakh — a correction of almost 64 per cent over the previous Rs 3.5 lakh.
S K Bhattacharya, president, School Action Committee, a body of all school organisations in the Capital, said the government spends about Rs 1,800 per child per month towards the salary of teachers in government schools.
Given those numbers, it is understandable that the private schools will also need funds to comply with the Sixth Pay Commission’s recommendations, he said. Private schools have been demanding a tuition fee hike of up to 50 per cent, but the Education Minister has suggested categorising schools in slabs and reviewing their financial health before any hike is approved.
“We now have to create a fund for gratuity and from the fees I have to earmark a certain amount for it. Our entire budget will go up by 100 per cent,” Bhattacharya said.
While the SC Bansal Committee’s report is being studied by the Directorate of Education before it submits it to the Cabinet, speculation over the upper limit of the fee hike to be considered by the government is at best disappointing.
The average salaries of teachers in the city range from Rs 16,000 to Rs 35,000, according to school officials. After correction, and that is when the schools clear arrears and upgrade salaries, the financial burden on schools will go up by almost 100 per cent. Factor in special child care leave, the cost of substitute teachers and the enhanced gratuity, and the schools will need substantial funds to meet the new standards, National Progressive Schools Conference Chairman S L Jain said.
“It will (the impact) will be substantial,” Jain said. But first the government should allow them to hike tuition fees in order for the schools to clear the arrears and salaries, he said.
The new rates are effective from January 2006 and the arrears will be given in two instalments — 40 per cent during the current fiscal, the deadline for which has already passed, and 60 per cent in 2009-10.
In the case of the special child care leave, schools have some room. Rajni Arora, principal of Ramjas School, Anand Parbat, said the leave can only be given with the management’s approval and therefore schools have some discretion over how many teachers can go on leave at a time and whether that leave will hamper the education of children, in which case it can be cancelled.
“It is not as easy. We will have to work out a criterion,” she said. But in the case of gratuity, the school has no choice, she said. “Let us first work out salaries and then we will go to gratuity. We can’t look beyond the hike, at the moment,” Arora said.
After the Centre approved the special child care leave, the department of training and personnel modified the earlier order saying women employees cannot demand the special leave as a matter of right and can avail themselves of it only after they have exhausted their earned leave. The special child care leave is over and above the existing six-month maternity leave.
New Delhi Private schools fear they might not be in a position to pay the enhanced pay scales of teachers for very long. Under the Delhi Education Act, however, private schools have to pay the same scale as government schools so that they are not derecognised.
The Sixth Pay Commission would have wide-ranging effects on the financial health of private schools. From a direct impact on salaries and arrears, the Pay Commission will also signal increased maternity leave and special child care leave of two years and a hiked gratuity payment of Rs 10 lakh — a correction of almost 64 per cent over the previous Rs 3.5 lakh.
S K Bhattacharya, president, School Action Committee, a body of all school organisations in the Capital, said the government spends about Rs 1,800 per child per month towards the salary of teachers in government schools.
Given those numbers, it is understandable that the private schools will also need funds to comply with the Sixth Pay Commission’s recommendations, he said. Private schools have been demanding a tuition fee hike of up to 50 per cent, but the Education Minister has suggested categorising schools in slabs and reviewing their financial health before any hike is approved.
“We now have to create a fund for gratuity and from the fees I have to earmark a certain amount for it. Our entire budget will go up by 100 per cent,” Bhattacharya said.
While the SC Bansal Committee’s report is being studied by the Directorate of Education before it submits it to the Cabinet, speculation over the upper limit of the fee hike to be considered by the government is at best disappointing.
The average salaries of teachers in the city range from Rs 16,000 to Rs 35,000, according to school officials. After correction, and that is when the schools clear arrears and upgrade salaries, the financial burden on schools will go up by almost 100 per cent. Factor in special child care leave, the cost of substitute teachers and the enhanced gratuity, and the schools will need substantial funds to meet the new standards, National Progressive Schools Conference Chairman S L Jain said.
“It will (the impact) will be substantial,” Jain said. But first the government should allow them to hike tuition fees in order for the schools to clear the arrears and salaries, he said.
The new rates are effective from January 2006 and the arrears will be given in two instalments — 40 per cent during the current fiscal, the deadline for which has already passed, and 60 per cent in 2009-10.
In the case of the special child care leave, schools have some room. Rajni Arora, principal of Ramjas School, Anand Parbat, said the leave can only be given with the management’s approval and therefore schools have some discretion over how many teachers can go on leave at a time and whether that leave will hamper the education of children, in which case it can be cancelled.
“It is not as easy. We will have to work out a criterion,” she said. But in the case of gratuity, the school has no choice, she said. “Let us first work out salaries and then we will go to gratuity. We can’t look beyond the hike, at the moment,” Arora said.
After the Centre approved the special child care leave, the department of training and personnel modified the earlier order saying women employees cannot demand the special leave as a matter of right and can avail themselves of it only after they have exhausted their earned leave. The special child care leave is over and above the existing six-month maternity leave.
Saturday, January 17, 2009
Anomaly committee for 6th pay panel
Centre decides to set up anomaly committee for 6th pay panel
New Delhi, Jan 15 (PTI) The Government has decided to set up an Anomaly Committee to settle disputes arising out of implementation of the sixth pay commission recommendations. The panel will receive anomalies upto six months from the date of its constitution and will dispose them within one year, the Department of Personnel, Public Grievances and Training said in its order.
DoPT sources today said the items already taken up by the Fast Track Committee will not be considered by the anomaly committee.
They said there will be two Anomaly Committees -- national and departmental.
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 handle cases pertaining exclusively to the department concerned and will have no repercussions on the employees of another ministry or department.
The anomaly will include cases where the maximum of the revised scale is less than the amount at which one is entitled to be fixed and where the amount of revised allowance is less than the existing rate, they said. PTI
New Delhi, Jan 15 (PTI) The Government has decided to set up an Anomaly Committee to settle disputes arising out of implementation of the sixth pay commission recommendations. The panel will receive anomalies upto six months from the date of its constitution and will dispose them within one year, the Department of Personnel, Public Grievances and Training said in its order.
DoPT sources today said the items already taken up by the Fast Track Committee will not be considered by the anomaly committee.
They said there will be two Anomaly Committees -- national and departmental.
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 handle cases pertaining exclusively to the department concerned and will have no repercussions on the employees of another ministry or department.
The anomaly will include cases where the maximum of the revised scale is less than the amount at which one is entitled to be fixed and where the amount of revised allowance is less than the existing rate, they said. PTI
ORISSA TEACHER'S-- 6TH PAY COMMISSION
Pyari regarded as ‘Lord’ by teachers
Statesman News Service
BHUBANESWAR, Jan 16: Primary teachers invoked their “Lord” and they succeeded as “He” turned up to assure them that he would do his best to get their demands fulfilled by the government. The living incarnation of the Lord was none other than ruling BJD heavyweight and BJD MP Mr Pyari Mohan Mohapatra.
All this took place on the main thoroughfare leading to the state secretariat here today. Leaders of the Nikhil Utkal Primary Teachers Federation staged a rally and demonstration demanding proper pay fixation as one of their major demands. "For us Pyari babu is chalanti pritima (living incarnation), the one who runs the government," said one of the teachers in the course of their speeches..
The implementation of the Sixth Pay Commission in the state had put the primary teachers at one of the lowest rungs of pay and this needs to be corrected, they said.
"But more than voicing their demands, the teachers were busy eulogising Pyari babu. He refused to come saying he had many important engagements but when we told him that 50,000 teachers were waiting for him, he agreed," said one of the leaders.
Pyari babu, was however at his modest best saying his strength stands doubled by the support of teachers. "I will be your liaison assistant, not liaison officer," he said while assuring to take up the demands with the finance minister.
"The society should hold primary school teachers is high esteem as they are the ones who lay the foundation of a student," he said.
Implicitly referring to the restrictions imposed by the model code of conduct due the municipal elections at Cuttack, Mr Mohapatra said that the state cabinet is likely to meet after 6 February and decisions in favour of teachers will be taken.
His speech was greeted with blowing of conchs and no sooner had he finished the demonstration which was originally planned for the entire day was called off.
Statesman News Service
BHUBANESWAR, Jan 16: Primary teachers invoked their “Lord” and they succeeded as “He” turned up to assure them that he would do his best to get their demands fulfilled by the government. The living incarnation of the Lord was none other than ruling BJD heavyweight and BJD MP Mr Pyari Mohan Mohapatra.
All this took place on the main thoroughfare leading to the state secretariat here today. Leaders of the Nikhil Utkal Primary Teachers Federation staged a rally and demonstration demanding proper pay fixation as one of their major demands. "For us Pyari babu is chalanti pritima (living incarnation), the one who runs the government," said one of the teachers in the course of their speeches..
The implementation of the Sixth Pay Commission in the state had put the primary teachers at one of the lowest rungs of pay and this needs to be corrected, they said.
"But more than voicing their demands, the teachers were busy eulogising Pyari babu. He refused to come saying he had many important engagements but when we told him that 50,000 teachers were waiting for him, he agreed," said one of the leaders.
Pyari babu, was however at his modest best saying his strength stands doubled by the support of teachers. "I will be your liaison assistant, not liaison officer," he said while assuring to take up the demands with the finance minister.
"The society should hold primary school teachers is high esteem as they are the ones who lay the foundation of a student," he said.
Implicitly referring to the restrictions imposed by the model code of conduct due the municipal elections at Cuttack, Mr Mohapatra said that the state cabinet is likely to meet after 6 February and decisions in favour of teachers will be taken.
His speech was greeted with blowing of conchs and no sooner had he finished the demonstration which was originally planned for the entire day was called off.
Thursday, January 15, 2009
NEWS --- 6TH PAY COMMISSION
Fee hike in pvt schools: Delhi government forms special committee
Zeenews Bureau
New Delhi, Jan 13: Delhi government on Tuesday announced to form a special committee to look into the demand put forth by the private schools to hike fees.
Private schools have earlier asked government to raise the fees by 30 to 40 percent. The special committee will look into the feasibility of the demand made by schools.
The issue of raising the fees has been attributed to a suggestion made by the Sixth Pay Commission to give 50 percent raise to all schoolteachers.
Zeenews Bureau
New Delhi, Jan 13: Delhi government on Tuesday announced to form a special committee to look into the demand put forth by the private schools to hike fees.
Private schools have earlier asked government to raise the fees by 30 to 40 percent. The special committee will look into the feasibility of the demand made by schools.
The issue of raising the fees has been attributed to a suggestion made by the Sixth Pay Commission to give 50 percent raise to all schoolteachers.
NEWS --- 6TH PAY COMMISSION
Fee hike in pvt schools: Delhi government forms special committee
Zeenews Bureau
New Delhi, Jan 13: Delhi government on Tuesday announced to form a special committee to look into the demand put forth by the private schools to hike fees.
Private schools have earlier asked government to raise the fees by 30 to 40 percent. The special committee will look into the feasibility of the demand made by schools.
The issue of raising the fees has been attributed to a suggestion made by the Sixth Pay Commission to give 50 percent raise to all schoolteachers.
Zeenews Bureau
New Delhi, Jan 13: Delhi government on Tuesday announced to form a special committee to look into the demand put forth by the private schools to hike fees.
Private schools have earlier asked government to raise the fees by 30 to 40 percent. The special committee will look into the feasibility of the demand made by schools.
The issue of raising the fees has been attributed to a suggestion made by the Sixth Pay Commission to give 50 percent raise to all schoolteachers.
NEWS-SIXTH PAY COMMISSION
Fee hike in pvt schools: Delhi government forms special committee
Zeenews Bureau
New Delhi, Jan 13: Delhi government on Tuesday announced to form a special committee to look into the demand put forth by the private schools to hike fees.
Private schools have earlier asked government to raise the fees by 30 to 40 percent. The special committee will look into the feasibility of the demand made by schools.
The issue of raising the fees has been attributed to a suggestion made by the Sixth Pay Commission to give 50 percent raise to all schoolteachers.
Photo Gallery
Click here for more pictures
Zeenews Bureau
New Delhi, Jan 13: Delhi government on Tuesday announced to form a special committee to look into the demand put forth by the private schools to hike fees.
Private schools have earlier asked government to raise the fees by 30 to 40 percent. The special committee will look into the feasibility of the demand made by schools.
The issue of raising the fees has been attributed to a suggestion made by the Sixth Pay Commission to give 50 percent raise to all schoolteachers.
Photo Gallery
Click here for more pictures
BIHAR-SIXTH PAY COMMISSION
PATNA: The state government on Tuesday enhanced the pay scales of six cadres — Bihar administrative, police, finance, health, veterinary and
engineering services.
Their pay scale will now be Rs 8,000-13,500 and they will get benefit of Sixth Pay Commission on this basis. It also increased the payscales of teachers of primary, middle and high schools.
The primary teachers pay scales has been increased from Rs 4,500-7,000 to Rs 6,500-10,500, of trained graduate teachers from Rs 5,500-9,000 to Rs 7,459-11,500 and of trained PG teachers from Rs 6,500-10,500 to Rs 7,500-12,000. They will get the arrears from April 1, 2006 and benefit of pay panel recommendation will be on basis of this pay scale.
engineering services.
Their pay scale will now be Rs 8,000-13,500 and they will get benefit of Sixth Pay Commission on this basis. It also increased the payscales of teachers of primary, middle and high schools.
The primary teachers pay scales has been increased from Rs 4,500-7,000 to Rs 6,500-10,500, of trained graduate teachers from Rs 5,500-9,000 to Rs 7,459-11,500 and of trained PG teachers from Rs 6,500-10,500 to Rs 7,500-12,000. They will get the arrears from April 1, 2006 and benefit of pay panel recommendation will be on basis of this pay scale.
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