Wednesday, 28 September 2016

Cabinet approves Productivity Linked Bonus to railway employees

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has given its approval to pay Productivity Linked Bonus (PLB) equivalent to 78 days wages to eligible non-gazetted railway employees (excluding RPF/RPSF personnel) for the financial year 2015-16. The approval entails a financial implication of approximately Rs.2090.96 crore. 

Payment of PLB would result in motivating a large number of railway employees to improve the performance of the Railways and enhance the productivity levels further besides maintaining industrial peace. 

The payment of this Bonus to eligible Railway Employees will be made before Dussehra/Puja holidays. 


(Release ID :151187)

Counting of Pre-appointment Training for Direct Recruit PA/SA for MACPs - Clarification dtd 27/09/2016

AIAPS will submit the PM Cadre restructure revised proposal shortly.!!!

Dear Postmasters,
       We are all much aware that PM cadre restructure proposal was returned by the Department of Expenditure by mentioning not completion of 5 years by the newly created PM Cadre while it was submitted. Hence Department is in the move of resubmitting the cadre restructure proposal. 

     For that revised proposal was prepared by  the Team AIAPS and same shall be submitted to the directorate within 2 days. After submission scanned copy of the same shall be published shortly.

   At present draft copy was published below for the PM cadre officials kind reference.....

        The Honorable Secretary Posts,
        Department of Posts,
        Dak Bhawan, Sansad Marg,
        New Delhi – 110001

Sub : Request to implement the Postmaster Cadre restructure immediately since glaring anomaly “One work two Pay” is raising because of not implementing the Postmaster Cadre restructure along with Group C cadre restructure- reg

Ref 1: This association letter even no AIAPS/GS/CHQ Corr/15-16  dated at New Delhi the 18.06.2016
Ref 2: Group – C cadre restructure D.G. Post letter No. 25-04/2012-PE-I dated 27th May, 2016.
Ref 3: Para ‘F’ of Cadre restructure bilateral agreement with department and staff side dated 28.04.2014

Respected sir,
        A kind reference is invited to the above references and vide              Ref 2, Group-C Postal wing cadre restructure order is released and LSG/HSG-II/HSG-I/HSG-I (NFG) posts are enhanced and their Grade Pay is upgraded for general line.

Vide Ref 3, it is assured that after implementation of cadre restructure in group-C, Postmaster cadre related cadre restructure also would have been examined in the light of the same.

Vide Ref 1, This association is also already requested to implement the Postmaster cadre restructure by enhancing and upgraded the Postmaster Grade I/II/III posts in the light of the same at Par with general line HSG II/HSG I/HSG I(NFG) posts as assured in the bilateral agreement.

But unfortunately, we came to know that Cadre restructure proposal was returned by mentioning that not completion of 5 years by the newly created Postmaster cadre while the proposal was submitted. As a result glaring anomaly is raising that general line posts shall be placed with G.P Rs.4200 and for the same work Postmaster line posts shall be placed with G.P Rs.2800. Now already 5 years 10 months were completed after the creation of Postmaster cadre hence to sort out the above glaring anomaly this association bring the fresh following proposal and few logical points for your benign consideration and early favorable orders please.


        1. In the Postmaster cadre creation introductory paragraph of Postal directorate, it was mentioned that in order to improve/upgrade the functioning of the Post Offices, meet the present day requirement of specialization in Postal office management in the wake of introduction of technology, challenges from market and to increase productivity it has absolutely become essential to ensure that key Post Offices are headed by professional managers. Thus, in order to ensure that professionally qualified, trained and meritorious officials head the key Post Offices, it has been decided to introduce a separate cadre of Postmasters comprising the following grades Postmaster cadre was introduced on 22nd November 2010, by carving out 1/3 of the already available general line supervisory posts with the following breakup figure posts.

Table 1 :

Sl. NoName of the postNo of posts allottedMethod of selection
1.Postmaster Grade I
“Group C cadre”
20975 years experienced Postal Assistants have to clear the Limited Department competitive examination with merit.
2.Postmaster Grade II
“Group B non gazetted cadre”
5116 years of Postmaster Grade I experience
3.Postmaster Grade III
“Group B non gazetted cadre”
4955 years of Postmaster Grade II experience
4.Senior Postmaster
“Group B gazetted cadre”
29 (25% of total no 116 Sr.PM posts)2 years of Postmaster Grade III experience

 2. As expected by the preamble of Postmaster cadre creation, in the wake of technology, Postmaster Grade I/II/III offices are running with professionally skilled incumbents and achieving the allotted targets to each and every corner of India. Postmaster cadre officials are in the good books of the department because of their progressive work and by the way they are professionally managing the key post offices.  We could see their glittering performances virtually through all the MIS of eService sites. But unfortunately even after 5 years 10 months from creation of the Postmaster cadre, nothing was given to boost the devoted and promising Postmaster cadre officials till now.

3. At present promotional opportunities and number of Posts to Postmaster Grade II/Grade III/Sr.PM are very meager, recently promoted Postmaster Cadre officials are in drench to get their next stage of promotion in the postmaster hierarchy because of acute stagnation.

4. In this juncture, if only general line posts are enhanced and upgraded without upgrading the Postmaster cadre which may add salt to the burning wounds. Postmaster cadre people shall be totally demoralized with lower pay for the same work.       

5. Vide Ref 3, our department is also gave assurance to implement the Postmaster cadre restructure on the light of the same with Group-C cadre restructure posts.

How PM Grade I post is differed with present General Line LSG post??

6. Postmaster Grade I post is differed with General line LSG post because of the following reasons…
  • As mentioned in the above table 1, LSG promotion is being given to the 5 years service completed senior PA officials whereas for Postmaster Grade I promotion is being given  to the 5 years service completed PA officials only after clearing the Limited Departmental Competitive Examination (LDCE) with merit.
  • So Postmaster Grade I posts should be definitely distinguished between LSG and Postmaster Grade I/II/III posts should be treated at par with HSG II/HSG I/HSG I(NFG) posts respectively.
  • To strengthen the above demand, by the virtue of Group-C cadre restructure also, now LSG posts are too upgraded as HSG-II posts in addition to ‘A’ Class offices.

7. So by considering above all facts, and as already assured by the Postal directorate in the bilateral agreement this association is systematically giving the following proposals to the hon’ble Secretary Posts, to implement the Postmaster Grade I/II/III restructure immediately in the light of the same with HSG II/HSG I/HSG I (NFG) cadre restructure as follows:

Proposal 1 :

Table 2:
CadreExisting Grade payRevised Grade PayRemarks
Postmaster Grade IRs. 2800Rs.4200Since norm based LSG posts are now upgraded as HSG-II with G.P Rs.4200 after Group- C cadre restructure and Postmaster Grade I posts are also carved out only from previous norm based LSG posts“Under same work same pay concept”
Postmaster Grade IIRs. 4200Rs.4600“Under same work same pay concept” at par with HSG II posts are now  upgraded as HSG-I with G.P Rs.4600.
Postmaster Grade IIIRs.4600Rs.4800“Under same work same pay concept” at par with some HSG I posts are now  upgraded as HSG-I(NFG) with G.P Rs.4800.
Senior PostmasterRs.4800Rs.54007th CPC is already upgraded the Grade pay of PSS Group B (identical cadre to Sr.PM). Hence to match up anomaly it is inevitable to upgrade the Grade Pay of the Sr.PM at Par with PSS Group B cadre.

Proposal 2 :

8. As per the relevant recruitment rules of Postmaster cadre 1/3 of HSG II/HSG I/HSG I(NFG) posts may kindly be enhanced to Postmaster Grade I/II/III respectively since LSG posts are now elevated to HSG II after cadre restructure. All the then administrative cadre Head post offices may kindly be identified as Senior Postmaster posts to maintain the pyramidal structure in promotion and to remove the bottle neck.

Table 3 :

Postmaster Grade IPostmaster Grade IIPostmaster Grade IIISenior Postmaster
Before cadre restructureAfter Cadre restructureBefore cadre restructureAfter Cadre restructureBefore cadre restructureAfter Cadre restructureBefore cadre restructureAfter Cadre restructure

  • 1/3 Posts of 8579 HSG-II posts may additionally be carved out for PM Grade I 
  • 1/3 Posts of 2123 HSG-I posts may additionally be out for PM Grade II
  • 1/3 Posts of 235 HSG-I (NFG) posts may additionally be carved out for PM Grade III
  • Previously 141 operative head post offices are manned by the administrative cadre(IP/ASP) officials. But those posts are now purely allotted to the General line officials. Since those posts are already having one or two HSG-I deputy postmasters, that office in-charge post should be higher than the HSG-I deputy postmasters i.e., as Senior Postmaster rank. Since those Sr.PM posts are purely in the hierarchy of Postmaster Cadre, those all the re-designating head post offices posts may kindly be allotted to Postmaster Cadre.

Proposal 3 :

9. To enhance the Postmaster Grade I/II/III/Sr. Postmaster posts the following strategies may kindly be adopted to the better and steady growth of our department.
Table 4 :
CadreTotal number of posts after cadre restructureAlready availableAdditional posts/offices should be identififed.
PM Grade I495720971/3 of  important A class offices may kindly be earmarked for PM Grade I.
For remaining posts, all the ASPM posts of PM Grade II offices may be earmarked for PM Grade I.
PM Grade II12195111/3 of newly upgraded HSG I may be additionally carved out for Grade II. 1/3 of the HSG I deputy postmasters may be identified as Grade II at HPOs
PM Grade III5734951/3 off HSG I(NFG) posts may additionally be carved out for PM Grade III and left out all the HPO Postmaster posts may be earmarked for PM Grade III.
Senior Postmaster17029All the 141 HPOs having Deputy Postmaster establishment and previously managed by the administrative line should be earmarked for Senior Postmaster cadre.

 Proposal 4 :

10. Vide proposal 3, till filling up the newly arising vacant Postmaster Grade I/II/III/Senior posts with relevant recruitment rules, if sufficient PM Grade I/II/III officials are not available then general line MACP II/III/HSG –II/HSG I senior officials may kindly be allowed to officiating those posts as like utilized while implementation of postmaster cadre during 2010.


11. Without implementing the above proposals it is not possible to implement the justified cadre restructure proposal among the employees of postal wing.

12. To honor the department call only General lines LSG officials were opted the Postmaster cadre, and for honoring the department call, Postmaster cadre cannot be on a biased side with lower pay for a same work.


So this association once again requests the hon’ble Secretary Posts, to do the needful to implement the above Postmaster cadre restructure proposal immediately along with Postal wing Group C cadre restructure to avoid the glaring anomaly of “one work two pay”.

Moreover ignoring the front runners of our department - Postmaster cadre officials which shall directly demoralize the already reaping progress growth of our department.

A line in reply would be highly solicited and in this regard this association may kindly be given with an appointment immediately with our All India Association of Postal Supervisors - representatives to discuss the above proposal matter in detail.

Enclosures: Cited above references 1, 2, 3

Thanking you.
Noida                                                                        Yours faithfully

    (Manoj Bhardwaj)

Tuesday, 27 September 2016

DA & Linking Factor – What’s expected?

DA & Linking Factor – What’s expected? – DA Announcement and linking factor explored.

As you all know that DA is calculated based on AICPIN. AICPIN is calculated based on the inflation and the cost of living in various cities. So, what’s going to happen in 7th Pay Commission, let’s read.
In Pay Commission III, the base year was used as (1960 =100).
  • In 4th Pay Commission, the DA was decided to pay twice a year and also for calculating the DA value the percentage increase in the 12 monthly average of All India Consumer Price Index (base 1960). Also the base year was (1982=100) as the base year.
  • In 5th Pay Commission, the DA was decided based on (1982=100) as the base year.
  • In 6th Pay Commission, the DA was decided based on (2001=100) as the base year.
  • In 7th Pay Commission, should we expect to have the base year as (2011=100)?

When the DA calculation change happened from base year 1982 to base year as 2001, there were a steep increase in the DA percentage, this is because the cost of living has increased multifold and also various cities and items was also included while calculating the real DA.

So, what’s been recommend in the 7th CPC Report

Keeping in mind that the present formulation of DA has worked well over the years, and there are no demands for its alteration, the Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance.

and also check out the gazette notification changes where the linking factor has been included as on AICPIN value as 2016.

Though in (2001=100) the linking factor was 4.63, this lead to the calculation of DA with the average index as 115.76 as per 2005. For example, (2005 , 12 Month Average Index – 536, so the linking factor as per record was 4.63).
All India and Centre-wise Linking factors between New Series of Consumer Price Index Numbers for Industrial Workers on base 2001 = 100 and the previous series on base 1982=100 (General Index).

As you all now understand that the linking factor play a major role in getting the DA value, but the linking factor for year 2016 .

I was not able to find this data in Labour Bureau . We assume that if the linking factor of 2016 used, then we expect to get a higher DA percentage (assumption). This means it would be a real DA value as it would include various cities and the current inflation and CPI.

We hope that when the results are out they would be using the linking factor of 2016 as the gazette notification has this mentioned. Normally the DA announcement is release in September 1st week or 2nd week and hope this is announced shortly.

Monday, 26 September 2016



Govt is actively considering central D.A. increase from 01.07.2016

  • Sources close to Finance Ministry told that the initial installment of DA to central government employees on the revised pay structure w.e.f 1.7.2016 is under consideration.
  • There is a confusion about percentage of D.A. payable from 1st July 2016 to Central Govt. employee and pensioners. There may be a hike of 2 to 3 percentage point, which is to be announced very soon, probably in this week.
  • Meanwhile Govt asked the Pay Research Unit to calculate exact financial implication for every percentage of D.A. increase, which is a routine matter.

Posting of Medical Officers to the Postal Dispensaries - order date 23.09.2016

Posting of Medical Officers to the Postal Dispensaries - order date 23.09.2016

Government decides to shift the issue date of the Sovereign Gold Bonds 2016-17 Series-II from September 23, 2016 to September 30, 2016

Press Information Bureau
Government of India
Ministry of Finance

23-September-2016 11:32 IST

Government decides to shift the issue date of the Sovereign Gold Bonds 2016-17 Series-II from September 23, 2016 to September 30, 2016 in view of large number of applications being received by banks and post offices 

The Government of India in consultation with the Reserve Bank of India(RBI), had notified the issuance of Sovereign Gold Bonds, 2016-17 Series II vide Notification F.No.4(7)-W&M/2016 dated August 29, 2016. The tranche was open for subscription from September 01, 2016 to September 09, 2016. The bonds were to be issued on September 23, 2016.

Large number of applications have been received by banks and post offices. To enable smooth uploading of applications into RBI’s E- Kuber system, particularly by the post offices, it has since been decided to shift the issue date of the Sovereign Gold Bonds from 23rd September,2016 to 30th September, 2016.

All other terms and conditions of the above Notification remain unchanged.

Understanding Minimum Wages and Bonus

Press Information Bureau
Government of India
Ministry of Labour & Employment

24-September-2016 10:35 IST 

Understanding Minimum Wages and Bonus

*Bandaru Dattatreya

The concept of minimum wages first evolved with reference to remuneration of workers in those industries where the level of wages was substantially low as compared to the wages for similar types of labour in other industries. As far back as 1928, the International Labour Conference of International Labour Organization, at Geneva, adopted a draft convention on minimum wages requiring the member countries to create and maintain a machinery whereby minimum rates of wages can be fixed for workers employed in industries in which no arrangements exist for the effective regulation of wages and where wages are exceptionally low. Also, at the Preparatory Asian Regional Labour Conference of International Labour Organisation held at New Delhi in 1947 and then at the 3rdsession of the Asian Regional Labour Conference, it was approved that every effort should be made to improve wage standards in industries and occupations in Asian Countries, where they are still low. Thus, the need of a legislation for fixation of minimum wages in India received an impetus after World War II, on account of the necessity of protecting the interest of demobilized personnel seeking employment in industries. 

The justification for statutory fixation of minimum wage is obvious. Such provisions which exist in more advanced countries are even necessary in India, where workers’ organizations are yet poorly developed and the workers’ bargaining power is consequently poor. 

To provide for machinery for fixing and revision of minimum wages a draft Bill was prepared and discussed at the 7th session of the Indian Labour Conference in November, 1945. Thereupon the Minimum Wages Bill was introduced in the Central Legislative Assembly. The Minimum Wages Bill having been passed by the Legislature received the assent on 15th March, 1948. It came on the Statute Book as the Minimum Wages Act, 1948. 

The Act provides for fixation by the appropriate Governments of minimum wages for employments covered by Schedule to the Act.  The Central Government is the appropriate Government in respect of 45 scheduled employments in the Central Sphere. The minimum wages fixed for Central sphere are applicable to the scheduled employments in the establishments under the authority of Central Government, railway administrations, mines, oil-fields, major ports or any corporation established by a Central Act. Employments other than the scheduled employment for Central Sphere come under the purview of the State Government and accordingly State Government wages are applicable in such employments.  The minimum wages for Central Sphere are revised from time to time based on the increase in Consumer Price Index effective from April and October. 

According to Section 3(1)(b) of the Minimum Wages Act, 1948, “the appropriate government shall review at such intervals, as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates if necessary. 

The norms recommended by the Indian Labour Conference, in 1957, fox fixing the minimum wages are: (a) consumption units for one wage earner; (b) minimum food requirements of 2700 calories per average Indian adult; (c) clothing requirements of 72 yards per annum per family; (d) rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme; and (e) fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage. 

In 1991, the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage. 

The Act envisages appointment of an Advisory Board, by the appropriate Government, for the purpose of advising the appropriate Government in the matter of fixing and revising minimum rates of wages. 

The Central Government revises the wages in the scheduled employments from time to time in accordance with the provisions of the Minimum Wages Act, 1948. Draft Notifications for all the Scheduled Employments in the Central Sphere were issued on 1st September, 2016 simultaneously, in fact for the first time. The basic rate of minimum wages for an unskilled worker in the scheduled employment other than agriculture has been proposed at Rs.350 in Area ‘C’ from the current minimum wage (basic wage + variable dearness allowance) of Rs.246 resulting in an increase of about 42%. The basic rate of minimum wages for an unskilled worker in the scheduled employment “agriculture” has been proposed at Rs.300 in Area ‘C’ from the current minimum wage (basic wage + variable dearness allowance) of Rs.211 resulting in an increase of about 42%.

The proposed revision in the rates of basic minimum wages would indeed provide much needed solace to the labour fraternity.


Bonus payment is an extra payment   given for doing one's job well also known as  performance-related pay or pay for performance.

The practice of paying bonus in India appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917.  In certain cases of industrial disputes demand for payment of bonus was also included.  In 1950, the Full Bench of the Labour Appellate Tribunal evolved a formula for determination of bonus.  A plea was made to raise that formula in 1959.  At the second and third meetings of the eighteenth Session of Standing Labour Committee (G.O.I) held in New Delhi in March/ April 1960, it was agreed that a Commission be appointed to go into the question of bonus and evolve suitable norms.  A Tripartite Commission was set up by the Government of India to consider in a comprehensive manner, the question of payment of bonus based on profits to employees employed in establishments and to make recommendations to the Government.  The Government of India accepted the recommendations of the Commission subject to certain modifications.  To implement these recommendations the Payment of Bonus Act, 1965 was enacted, which came into force on 25-9-1965.

The objective of the Payment of Bonus Act, 1965 is to provide for the payment of bonus to the persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matter connected therewith.

It applies to (i) Every Factory; and (ii) Every other establishment in which 20 or more persons are employed on any day during an accounting year subject to the exemptions under section 32. Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year. While the minimum bonus is 8.33% of the salary or wage earned by the employee during the accounting year, the maximum bonus is 20% of such salary or wage.

Two ceilings are available under the said Act generally known as eligibility limit and calculation ceiling respectively. Clause 13 of Section 2 of Payment of Bonus Act, 1965 defines an employee based on salary or wage per mensem. This is usually taken as the “eligibility limit” for computation of bonus. Similarly, Section 12 of the Payment of Bonus Act, 1965 provides for calculation of bonus of an employee based on salary or wage per mensem. This is known as “calculation ceiling”. 

The two ceilings are revised from time to time to keep pace with the price rise and increase in the salary structure. At present, the calculation ceiling has been enhanced to Rs.7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher and the eligibility limit has been enhanced to Rs.21,000/-.

Due to this revision, additional 55 lakh workers would be benefited.  This would indeed, be a good gesture on the part of the Government towards the labour fraternity.
*Author is Minister of State (Independent Charge) Labour and Employment, Government of India

Payment of Allowances in Revised pay may satisfy the Government Staff

Payment of Allowances in Revised pay may satisfy the Government Staff

It is believed that Payment of Allowances in Revised pay may at least satisfy the Government Staff, despite the fact that the Pay Hike is not sufficient.7th CPC Allowances

Bapus are annoyed about the inordinate delay in announcing Allowances. Talks are doing rounds that the government is deliberately playing the delaying tactics to make the CG Staff to accept the decisions of Allowance Committee.

Central Staff upset with Pay Hike

Already the Central Government Staff are very much upset with Pay Hike recommended for next Ten Long years. They in fact are not happy about the Arrears paid to them. Though the Govt has defended that the Pay Revision arrears will not be as high as in previous Pay Commission, because Arrears for couple of years had been paid in previous Pay Commission. But this time Pay Revision took place within seven months from the due date. So obviously the Pay Revision Arrears will be lesser than previous Pay Commission.

Though a Committee was formed to review the Minimum Pay and Fitment Factor, it is believed that it was wrapped up already. But the federations are Optimistic. They expect somehow the Committee will help them to pacify the Govt Servants on this particular issue.

But nonpayment of Allowances in revised Pay will certainly axe the feel good factor in Central Government Offices. They are started losing patience over it and expect the government to announce it soon. Because the take home pay after pay revision is unbelievably very low comparing to the previous Pay commission. The Central government should not reduce the rate of Allowances and it should be implemented with effect from 1.1.2016

Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

The Sources Close to the Ministry of finance informed that there is proposal to Pay 1% DA from July as an interim Measure.It is said that the Central Government has not yet decided about the DA rates in Revised Pay scale.

Sources close to Finance Ministry told that the initial installment of DA to central government employees on the revised pay structure w.e.f 1.7.2016 is under consideration. Mean time there is a proposal to pay the DA from July 2016 at the rate of 1% to all CG Staffs. It will be a shocking news for CG Staff, since they are already expecting 2 to 3% DA from July 2016.

PRU is asked to submit Financial Implication of 1% DA

But the fact is the Department of Expenditure has directed the PRU of the Finance Ministry to furnish the details of additional Financial Implications for 1% increase of DA with effect from 1.7.2016 on the revised Pay Structure.

Further the Pay Research Unit has been requested to furnish financial implications for the Period of July 2016 to February 2017 on account of granting 1% DA from July 2016 to all central government employees including Armed Forces and UT Employees.

According to the above information, it is believed that announcement of 1% DA for July installment may be made any time soon.

Inauguration of “TELANGANA POSTAL CIRCLE” on 26.09.2016 at Hyderabad.

Thursday, 22 September 2016

Casual Labourers with temporary status - clarification regarding contribution to GPF and Pension under the Old Pension Scheme

7th Pay Commission: Central Govt Employees In Wait For Fatter Allowances

New Delhi: The central government is likely to announce fatter allowances under the 7th Pay Commission recommendations for its 4.8 million employees, in a bid to ease the inflationary pressure, Finance Ministry official sources said.

In fact, it’s the only hike in basic pay is not helpful for maintaining central government employees’ living standard, Finance Ministry sources told The Sen Times on Tuesday.
“The basic salaries of government employees has been increased on the recommendations of 7th Pay Commission, which are giving them some financial comfort,” they said and added, a step they had hoped might be taken next month, when government will announce the fatter allowances.
Sources in the Prime Minister’s Office (PMO) said a formal announcement on fatter allowances will be made soon.

The Finance Ministry official sources confirmed the Finance Minister Arun Jaitley is likely to approve the proposal of committee on allowances headed by Finance Secretary Ashok Lavasa which will stick to the 7th Pay Commission’s recommendations on allowances like glue and the fatter allowances will be implemented with prospective effect.
The committee on allowances, which was set up in July this year on the direction of the cabinet, is looking into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.
“The central government employees now get a little hike in basic pay, the overall hike percentage in basic pay 14.28 while according to the 7th pay commission recommendation, allowances contribute 63 percent hike, which was recommended a substantial improvement.” sources said.
“With the current basic pay hike and steep inflation, it is not possible for employees to make ends meet. It is also impossible to sustain with their current basic pay without hike in allowances. Inflation has climbed steadily over the past few years, which the fatter allowances will help to compensate.
Accordingly, the fatter allowances will hopefully attract the employees to live with dignity and the committee on allowances is likely submit its report in this week, which will be forwarded to the cabinet in October ,” assured the officials.

One day paid weekly off for casual workers - implementation of the Order of Hon'ble CAT, Ahmedabad bench

Cabinet approves merger of rail budget with general budget

Press Information Bureau
Government of India
Ministry of Finance

21-September-2016 15:59 IST

Cabinet approves merger of rail budget with general budget; 
advancement of budget presentation and merger of plan and non-plan classification in budget and accounts  
The Union Cabinet has approved the proposals of Ministry of Finance on certain landmark budgetary reforms relating to (i) the merger of Railway budget with the General budget, (ii) the advancement of the date of Budget presentation from the last day of February to the 1st of February and (iii) the merger of the Plan and the Non-Plan classification in the Budget and Accounts. All these changes will be put into effect simultaneously from the Budget 2017-18.

Merger of Railway Budget with the General Budget:

The arrangements for merger of Railway budget with the General budget have been approved by the Cabinet with the following administrative and financial arrangements-
(i)  The Railways will continue to maintain its distinct entity -as a departmentally run commercial undertaking as at present;
(ii) Railways will retain their functional autonomy and delegation of financial powers etc. as per the existing guidelines;
(iii)The existing financial arrangements will continue wherein Railways will meet all their revenue expenditure, including ordinary working expenses, pay and allowances and pensions etc. from their revenue receipts;
(iv)The Capital at charge of the Railways estimated at Rs.2.27 lakh crore on which annual dividend is paid by the Railways will be wiped off. Consequently, there will be no dividend liability for Railways from 2017-18 and Ministry of Railways will get Gross Budgetary support. This will also save Railways from the liability of payment of approximately Rs.9,700 crore annual dividend to the Government of India;
The presentation of separate Railway budget started in the year 1924, and has continued after independence as a convention rather than under Constitutional provisions.
The merger would help in the following ways:
·         The presentation of a unified budget will bring the affairs of the Railways to centre stage and present a holistic picture of the financial position of the Government.
·         The merger is also expected to reduce the procedural requirements and instead bring into focus, the aspects of delivery and good governance.
·         Consequent to the merger, the appropriations for Railways will form part of the main Appropriation Bill.

Advancement of the Budget presentation:

The   Cabinet   has   also   approved, in principle, another   reform   relating   to   budgetary   process,   for advancement of the date of Budget presentation from the last day of February to a suitable date.  The exact date of presentation of Budget for 2017-18 would be decided keeping in view the date of assembly elections to be held in States.
This would help in following ways:
·         The advancement of budget presentation by a month and completion of Budget related legislative business before 31st  March would pave the way for early completion of Budget cycle and enable Ministries and Departments to ensure better planning and execution of schemes from the beginning of the financial year and utilization of the full working seasons including the first quarter.
·         This will also preclude the need for seeking appropriation through 'Vote on Account' and enable implementation of the legislative changes in tax; laws for new taxation measures from the beginning of the financial year.

Merger of Plan and Non Plan classification in Budget and Accounts:

The third proposal approved by the Cabinet relates to the merger of Plan and Non Plan classification in Budget and Accounts from 2017-18, with continuance of earmarking of funds for Scheduled Castes Sub-Plan/Tribal Sub-Plan. Similarly, the allocations for North Eastern States will also continue.
This would help in resolving the following issues:
·         The Plan/Non-Plan bifurcation of expenditure has led to a fragmented view of resource allocation to various schemes, making it difficult not only to ascertain cost of delivering a service but also to link outlays to outcomes.
·         The bias in favour of Plan expenditure by Centre as well as the State Governments has led to a neglect of essential expenditures on maintenance of assets and other establishment related expenditures for providing essential social services.
·         The merger of plan and non-plan in the budget is expected to provide appropriate budgetary framework having focus on the revenue, and capital expenditure.