Thursday, February 26, 2009

6% hike in DA for Central govt employees

The Union Cabinet on Thursday raised the Dearness Allowance for Central government employees from the existing 16% to 22% with effect from Jan 1, 2009.

The Cabinet met today and cleared the hike which will increase the burden on the exchequer to over Rs 6,000 crore.

The move is significant since elections are round the corner and notification from the Election Commission is expected shortly.

In other decisions, the Cabinet cleared Rs 8,160 crore for upgrading roads in Naxal-affected areas. It also allowed states to let their fiscal deficit go up to 3.5% as compared to 3% earlier.

On Tuesday, more sops were announced by stand-in finance minister Pranab Mukherjee, who declared cuts of 2% in service tax and in excise duties on most goods. Ahead of Lok Sabha polls, the sops are estimated to cost the government over Rs 29,000 crore.

Announcing that the 4% cut in central excise duties made in December 2008 would continue for the next fiscal, the FM said excise rates at 10% would be cut by a further 2% to bring them down to 8%. Other excise slabs like 4% or 8% or items taxed at more than 10% would be unaffected by the cut. Experts said while only one slab had been slashed, it accounted for almost 96% of all items, which makes the cut almost across-the-board.

Tuesday, February 24, 2009

ACP (Assured Career Progression) clarification will be expected in next week

The committee meeting was held on 19-Feb-2009 at New Delhi. The following points were finalized as per the information received.

1. Assured Career Promotion (III – ACP) order will be announced next week.

2. Grade Pay of Rs. 4200 for Pharmacist will be discussed in the next meeting.

3. Grade Pay of Rs. 4200 will be given to Master Crafts Man (MCM), agreed by the Finance Ministry.

Monday, February 23, 2009

Remaining arrears likely in August only.

Government employees, waiting for the balance of the sixth pay commission arrears are likely to be disappointed. More than 8.3 million central government employees and pensioners will have to wait till at least August 2009 to receive the second instalment of Sixth Pay Commission arrears This became clear from the Interim Budget presented last week, which has not sought Parliamentary approval in its expenditure estimates for the first four months of the next fiscal starting April 2009, said a senior finance ministry official.
“The new government will have to seek Parliament approval when they submit the budget,” said the same official.

Office Memorandum - CGHS - Payment / Reimbursement of Medical Expenses

Office Memorandum from Ministry of Health and Family Welfare on 19-February-2009.
CGHS - Payment / Reimbursement of Medical Expenses to Beneficiaries under CGHS and Central Services (Medical Attendance) Rules, 1944 from two sources - from Insurance Agencies and from the CGHS or from the Ministry / Department.
The Ministry of Health and Family Welfare carefully considered and it has been dicided, with the approval of the Compentent Authority that beneficiaries who have subscribed to Medical Insurance Policies in addition to availing CGHS facilities / Central Services (Medical Attendance) Rules, 1944, may be allowed to calim reimbursement sources should not exceed the total expenditure incurred by the beneficiary first on the insurance company, which would issue a certificate indicating the amount reimbursed to the Director, CGHS or Head of Department of the Ministry / Department concerned.

Saturday, February 21, 2009

Revision of provisions regulating gratuity

No.7/7/2008-P&PW (F)
Government of India
Ministry of Personnel Public Grievances and Pensions
Department of Pension and Pensioners Welfare

Lok Nayak Bhawan,
Khan Market, NewDelhi-110 003
dated 13th February, 2009


Subject : Implementation of Government’s decision on the recommendation ofthe Sixth CPC – Revision of provisions regulating gratuity .

The undersigned is directed to saythat in terms of para 7.1 of this Department’s O.M. No.38/37/2008-P&PW(A)dated the 2nd September, 2008 issued in implementation of thedecision taken on the recommendation of the Sixth Central Pay Commission, thebenefit of adding years of qualifying service for the purpose of computation ofpension shall stand withdrawn with effect from the date of issue of the O.M.

2. Sixth Central Pay Commission in Para5.1.33 of its Report made the following recommendation:

“Linkage of fullpension with 33 years of qualifying service should be dispensed with. Once an employee renders the minimumpensionable service of 20 years, pension should be paid at 50% of the averageemoluments received during the past 10 months or the pay last drawn, whicheveris more beneficial to the retiring employee. Simultaneously, the extant benefit of adding years of qualifying servicefor purposes of computing pension/related benefits should be withdrawn as itwould no longer be relevant.”

This recommendation was acceptedby Government of India vide Resolution No.38/37/2008-P&PW (A) dated 29thAugust, 2008.

3. It is clear from the above recommendations/decisions, thatthe benefit of adding years of qualifying service is withdrawn for the purposeof computing pension as well as other related benefits such as gratuity.

4. This issues with the concurrence of the Ministry of Finance,Department of Expenditure U.O. No.4.2/40/2009-ICdated 12.2.2009

5. Ministry of Agriculture etc. are requested to take intoconsideration the above position while computing pension and gratuity ofgovernment servants who have retired since 2.9.2008.

Friday, February 20, 2009

Leave Travel Concession Rules as per 6th CPC - (w.e.f. 01.09.2008)

1. LTC Rules is allowed all Government servants irrespective of the distance between headquarters and their home town.
2. LTC Rules is allowed Hometown" means the town, village or any other place declared as such by the servant and accepted by the controlling officer.
3. LTC Rules is allowed only to those who have completed one year of service on the date of journey.
4. LTC Rules is allowed for self and family.
5. LTC Rules is allowed only to the family (in the case of an employee under suspension).
6. LTC Rules is allowed to journey to “Home Town” once in a block of two years.
7. LTC Rules is allowed journey to “Any place in India” once in a block of four years.
8. LTC Rules is allowed to expression "any place in India" will cover any place within the territory of India whether it is on the mainland, or overseas.
9. LTC Rules is allowed journey to “Any place in India” in lieu of one journey to Home Town.
10. LTC Rules is allowed availing during all leave periods
11. LTC Rules is allowed all journeys to travel by Rail/Road/Air/Ship.
12. LTC Rules is allowed privilege not availed during a block may be availed before end of the next year.
13. LTC Rules is allowed allow family members independently in any number of batches.
14. LTC Rules is allowed traveling to “Any place in India” the employee and or members of the family may travel either to the same place or different places of their choice.
15. LTC Rules is allowed traveling to visit “Any place in India” or can visit his same Home Town also.
16. LTC Rules is allowed in the same two-year block, some members of family can avail Home Town concession while other “Any place in India”.
17. LTC Rules is allowed reimbursement by the entitled class or actually traveled class, whichever is less.
18. LTC Rules is allowed 90 per cent of the anticipated reimbursement amount may be granted as advance.
19. LTC Rules is allowed Grade Pay holders of Rs.2400,2600 and 2800 can go AC-II Tier class by train.
20. LTC Rules is allowed Grade Pay holders of below Rs.2400 can go AC-III Tier / First Class / AC-Chair Car class by train.
Earned Leave Encashment Facility :-
1. Earned Leave up to a maximum of ten days at a time may be enchased, subject to the condition that at least an equivalent duration of Earned Leave.

2. This is limited to a maximum of 60 days during the entire career and the total number of days so enchased will not be included for computing maximum quantum of leave encashable at the time of quitting service.
3. The balance at credit should be but less than 30 days after deducting the total of leave availed plus leave for which encashment was availed.
4. Where both husband and wife are government servants, encashment of leave will continue to be available to both, subject to maximum limit of 60 days.

Block Year :-
1. The LTC to home town is allowed once in a block of two calendar years, such as 2006-2007, 2008-2009 and so on.
2. The LTC to “Any Place in India” is allowed once in a block of four calendar years, such as 2006 - 2009 and so on.
Husband and Wife
When both the husband and wife are Central Government servants:
1. They can declare separate Home Town independently.
2. They can claim LTC for their respective families, viz,. While the husband can claim for his parents / minor brothers / sisters, the wife can avail for her parents / minor brother / sisters.
3. Either of the parents can claim the concession for the children in a particular block;
4. The husband / wife who avails LTC as a member of the family of the spouse, cannot claim independently for SELF.
Family – definition
1. The Government servant’s wife or husband and two surviving unmarried children or stepchildren wholly dependent on the Government servant, irrespective of whether they are residing with the Government servant or not.
2. Married daughters divorced, abandoned or separated from their husbands and widowed daughters and are residing with the Government servant and wholly dependent on the Government servant.
3. Parents and / or step-parents (stepfather and stepmother) whole dependent on the Government servant, whether residing with the Government servant or not:
4. Unmarried minor brothers as well as unmarried divorced abandoned, separated from their husbands or widowed sisters residing with and wholly dependent on the Government servant provided their parents are either not alive or are themselves wholly dependent on the Government servant.
Change of Home Town
“The hometown once declared and accepted by the controlling officer shall be treated as final. In exceptional circumstances, the Head of the Department or if the Government servant himself is the Head of the Department, the Administrative Ministry, may authorise a change in such declaration provided that such a change shall not be made more than once during the service of a Government servant.”
The CCS Rule allow an employee to change the Permanent Address given in their Service Records for once in their service.

The employee can apply for this through their respective Head of Section enclosing the relationship and residential proof of the new address.
Care to be taken before applying for the change of address as this facility will be available only once in their service. After changing the Permanent Address the employee is eligible to apply for Home Town LTC.
Those employees who are residing on the outskirts of their work place, automatically they are ineligible for LTC HomeTown. For the benefit of these employees, a male employee can give the address of his wife’s native place or opposite, after the marriage of son or daughter, their residing place like that…
But the respective Head of Section has the right to turndown the application.

Travelling Allowance - Correction

Travelling Allowance Rules-Implementation of the Sixth Central Pay Commission.
In para 4 (C) column (3) of O.M. No. 19030/3/2008 – E.IV dated 23-09-2008 on the above subject, the following may be corrected:-

Rage per km. for transport
by road (Rs. Per km.)
(Rs.0.30 per kg in per km.
(Rs. 0.003 per kg/per km.)
(Rs.0.30 per kg per km.
(Rs. 0.003 per kg/per km.)
(Rs.0.31 per kg per km.
(Rs. 0.0031 per kg/per km.)
(Rs.0.31 per kg per km.
(Rs. 0.003 per kg/per km.)