Decrease in Take Home Salary from 6th to 7th Pay Commission – IRTSA

Decrease in Take Home Salary from 6th to 7th Pay Commission – IRTSA

7th CPC PAY HIKE – IS IT A HIKE OR A FARCE ?
THE CAUSE IS HIDDEN
THE EFFECT IS VISIBLE TO ALL

7th CPC has submitted its report to the Government and the additional expenditure projected by the PAY Commission is of 1.02 lakh rupees. As outsiders many of the country men started crying hoarse that the Govt. employees are taking away lions’ share of its income.

Out of the projected 1.02 lakh hike, just above 1/4th is going to be borne by Indian Railways within its own budget; centre has to bear 1/4th towards pension, 1/4th towards allowances and only 1/4th towards Pay. Govt. need to borne only Rs.27,750 crores towards increase in pay. Allowances need not be taken as higher expenditure since they are part of compensation towards inflation and expenditure incurred in discharge of official duties.

7th CPC itself observed that financial impact on account of increase in pay, allowances & pension will be 23.55%. Increase on account of Pay & DA (excluding other allowances) will be to the tune of 16%. At present, without implementing 7th CPC Report, Year on year increase in the expenditure in both pay and pension has averaged about 11% of the Central Expenditure. Thus real increase on account of increase in pay, all allowances & pension will be only 12.55% (23.55% – 11% = 12.55%). Real increase on account of Pay & DA will be only 5% (16% – 11% = 5%).

IS THERE A REAL INCREASE IN TAKE HOME PAY?

Real increase in minimum wage between 6th CPC & recommended 7th CPC scales will be Rs.2250. Employees’ contribution to National Pension scheme will increase from Rs.700 to Rs.1800 and for CGEGIS it will increase from present Rs.30 to Rs.1500. Therefore increase in real wage (take home pay) of Rs.2250 will be eaten away by Rs.900 increased contribution for NPS plus Rs.1500 for CGEGIS. Net take home pay will have a negative growth of Rs.320 (Rs.1100 + Rs.1470 – Rs.2250 = Rs. – 320) as illustrated in the table below:

WILL THERE BE ANY ADDITIONAL EXPENDITURE DUE TO PAY HIKERECOMMENDED BY 7TH CPC?

Government will take back into its treasury Rs. 6500 crores from increased monthly contribution towards CGEGIS and another Rs.2500 crores towards employees’ contribution for NPS from 11 lakh employees appointed after 1.1.2004. After reducing Rs.9000 crore from Rs.27,750 crore (projected increase in pay), net additional expense towards Pay will be around Rs.18,750 crores only. Even this additional expenditure is not true.

Total Expenditure on Pay & Allowance in FY 2012- 13 was Rs.1,29,599 crore. If it is indexed by 11% increase year on year, in the FY 2015-16 even without implementing 7th CPC recommendations increase on account of Pay & Allowances will be around Rs.19,500 crore. Therefore Government is not going to have any additional expenditure on account of Pay increase after the implementation of 7th CPC Report as per its recommendations.

For 2012-13, revenues foregone through various concessions to various sections are estimated at a total of Rs.5,73,627 crore which was 10 per cent higher than the total fiscal deficit of the Central Government, financial experts say, concessions must be given to have accelerated economic growth. Government employees are exposed to negative growth in their real wage – but who cares?

Source : Voice of Rail Engineers – Editorial

Trade Unions On Monday Asked The Government To Increase The Income Tax Exemption Limit To Rs 5 Lakh

Trade unions on Monday asked the government to increase the income tax exemption limit to Rs 5 lakh and the minimum wage to Rs 18,000 besides raising the minimum monthly pension to Rs 3,000 for all.

They also sought a special package for victims of the recent Tamil Nadu floods.

These demands were raised under a 15-point charter submitted by 11 central trade unions to Finance Minister Arun Jaitley during pre-Budget consultations held here. The Union Budget for the next financial year, 2016-17, is slated to be presented in Parliament in February end. It will take effect from April 1.

“We have demanded a minimum wage of Rs 18,000 per month which is higher than our earlier demand of Rs 15,000,” Bharatiya Mazdoor Sangh Zonal Organisation Secretary Pawan Kumar said after the meeting.

The 7th Pay Commission has recommended Rs 18,000 as minimum monthly wage for central government workers and it should be the benchmark, he said.

All Indian Trade Union Congress Secretary DL Sachdev said: “We have also demanded Rs 3,000 minimum monthly pension for all and asked for a special package for flood ravaged Tamil Nadu to provide relief to workers as well as industry in the next Budget.”

Sachdev said that in view of price rise “we have also demanded from the government to increase the income tax exemption limit to Rs 5 lakh per annum”.

The union have also asked that fringe benefits like housing, medical and educational facilities and running allowances in railways should be exempted from Income Tax.

Unions also demanded that PSUs should be strengthened and expanded and the disinvestment of government shares in profit making PSUs should be stopped.

Besides, they said that the budgetary support should be provided for revival of potentially viable sick PSUs.

On the price rise, the charter said: “Take effective measures to arrest the spiralling price rise especially of food and essential items of daily use. Ban speculative forward trading in essential commodities, check on hoarding and universalise and strengthen Public Distribution System.”

Expressing concerns over steel and aluminium sectors, the unions said: “Relentless and increasing flow of import of industrial commodities including capital goods must be contained and regulated to prevent dumping and also to protect and promote domestic industries and prevent loss of employment.”

It also said that “FDI should not be allowed in crucial sectors like defence production, Railways, financial sector, retail trade and other strategic sectors. In other areas, terms and conditions for FDI should be made public.

7th CPC : Arrears to be paid in one instalment

New Delhi: The central government employees and pensioners will get arrears of the Seventh Pay Commission in one instalment, besides their pay hike.

The Implementation Cell in Finance ministry will submit a report to Finance Minister Arun Jaitley to pay the arrears of the Seventh Pay Commission in one instalment.

According to sources, the Implementation Cell in Finance ministry will submit a report to Finance Minister Arun Jaitley on arrears payment of the Seventh Pay Commission in a single instalment along with the reviews of whole pay commission report.

The entire concept of ‘arrears of pay’ has shot into the lime light as a result of the recommendations of the Seventh Pay Commission that has been released in November, proposed a 23.55% increase in pay, allowances and pension for 4.8 million central government employees and 5.5 million pensioners, which have resulted in a pay hike of central government employees with a retrospective effect from January 1, 2016.

According to reports,The recommendations of the Seventh Pay Commission are expected to add Rs 73,650 crore or 0.65 percent of the GDP in the first year, to the government’s expenditure. In line with the recommendations of the Commission, the government will pay hike salaries as well as pensions.

Also, the recommendations of the Commission come into effect from 1 January, 2016. They will be implemented from 1 April, 2016. Hence, arrears for the three months of January to March 2016 will also have to be paid. This is likely to amount to Rs 18,412.5 crore (Rs 73,650 divided by four). This pushes up the total extra expenditure due to the recommendations of the Seventh Pay Commission to Rs 92,062.5 crore (Rs 73,650 crore plus Rs 18,412.5 crore).

Over and above this, the Railways has requested the government to fund the extra money it would have to spend in order to meet the recommendations of the Seventh Pay Commission. This is estimated to be Rs 28,450 crore.

The Pay Commission in its reports expected the Railways to meet this extra expenditure out of its own revenues. But with the revenues of the Railways not growing as fast as they were expected to, this may not happen now.

Further, arrears of the first three months of 2016 will also have to be paid by the Railways and this will push the total extra expenditure of the Railways to be funded by the government to Rs 35,562.5 crore (Rs 28,450 crore plus Rs 28,450 crore divided by four).

Hence, the total extra expenditure of the government due to the recommendations of the Seventh Pay Commission will come to Rs 1,27,625 crore (Rs 92,062.5 crore plus Rs 35,562.5 crore).

But, along with this big bonanza, there is also a question that is dwelling in the minds of central government employees. The question arises that how much Income tax is payable on the salary and arrears and is there any relief available?

The tax on hike pay and arrears will be deducted in the next fiscal and sources confirmed that there is no relief available in taxation on pay hikes and arrears as payment will be made in the same fiscal.

According to finance ministry sources, the central government employees will be paid their higher pay and arrears in the fiscal 2016 and arrears that will be paid in a single instalment. The taxation, accordingly will be implemented at the time of payment.

The rate of income tax will be implemented according to the next budget 2016-17.

Disable USB Ports On Windows PC Via Registry

Disable USB Ports On Windows PC Via Registry

With this trick, you can disable access to your USB(Universal Serial Bus) ports on your Windows based PC to prevent people from taking out data without permission or spreading viruses through the use of USB (pen and flash) drives. 
To use this trick to disable USB ports, follow the steps given below:-

1. Click on Start.
2. Click on Run. If you cannot find RUN, type it in the search box.
3. Type "regedit" without quotes. This will launch the Registry Editor.
4. Navigate to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\usbstor.
5. In the work area, double click on Start.
6. In the Value Data box, enter 4.
7. Click on OK.
8. Close Registry Editor and refresh your desktop.
9. To re-enable access to your USB ports, enter 3 in the Value Data box in Step 6

Step by Step procedure of RD account closure having loan in DOP Finacle

When an RD account having loan approached for closure then there will be 2 cases they are mentioned below

1. RD account having loan account approaches for before maturity period (Premature closure).
2. RD account having loan approaches after maturity period (Mature closure).

Case 1:- 

RD account closure having loan before maturity period (Premature Closure) 

1. If the customer approaches for RD account closure having loan before maturity period (Premature closure) then as per the POSB norms we will not collect the loan interest from the customer
2. In Counter PA login invoke the account closure menu CRDCAAC and close the account.
3. Then the system will auto calculates the Net amount i..e, it will deduct loan amount and net balance to be paid to the customer will displayed by the system.
4. Supervisor has to verify the account closure using the menu CRDCAAC.

Case 2:- 

RD account having loan approaches after maturity period (Mature closure).

1. Counter PA has to invoke loan repayment using HLAUPAY menu.
2. Supervisor has to verify the transaction done in HLAUPAY menu.
3. Counter PA has to invoke the menu HPAYOFF to make the loan amount '0'(zero) and system will calculates the loan interest.
4. Supervisor has to verify the transaction done in HPAYOFF.
5. Counter PA has to invoke the menu CAACLA to close the loan account.
6. Supervisor has to verify the transaction done in CAACLA. Now the loan account is closed we have to proceed for account closure in the next step.
7. Counter PA has to invoke the menu CRDCAAC to close the account.
8. Supervisor has to verify the transaction done in CRDCAAC. Then the system will calculates the net amount to be paid to the customer after deducting the loan amount and interest on loan amount.
9. Note:- In Case 2 if the customer repaid total loan amount in Sanchay Post then the system will not generate the loan account number during migration. For loan interest system will mark LIEN hence we have to modify the LIEN amount to '0'(zero) and the same should be charged under RD loan interest then proceed for RD account closure.

CCS (Conduct) Rules, 1964 - Submission of Declaration of Immovable Property Returns by the Government servants - regarding.

The Annual Property Returns required to be filed under the Central Civil Services (Conduct) Rules, 1964 for the year 2015 which is required to be filed by the 31st January, 2016, may be filed in the forms prescribed under the CCS (Conduct) Rules, 1964.

Status of Cadre Review Proposal as on 31.12.2015

In Dept of Post CRP is pending.

CRC meeting held on 28.12.2015.
Minutes are awaited.