8% DA for central government employees

NEW DELHI: The Cabinet on Friday okayed increasing Dearness Allowance for central government employees and pensioners by 8% to compensate for price rise.

The increase is in accordance with the accepted formula based on the recommendations of the Sixth Central Pay Commission, information & broadcasting minister Ambika Soni said.
The hike would be over the existing rate of 27% of basic pay or pension and the additional instalment of DA would be released with effect from January this year. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be to the tune of Rs 6,969.36 crore per annum and Rs 8,131.20 crore in the financial year 2010-2011.
The Cabinet also approved revised cost estimates (RCE) for setting up of six new AIIMS-like Institutions and upgradation of 13 existing government medical colleges under Pradhan Mantri Swasthya Suraksha Yojana PMSSY (Phase I) for an outlay of Rs 9,307.62 crore. The Cabinet Committee on Economic Affairs had earlier approved the scheme for Rs 3,975.99 crore.

Govt decides to release final installment of pay arrears

NEW DELHI: Ahead of the festival season, the government on Tuesday decided to release the second and last installment of salary arrears to

government servants numbering about 50 lakh which will put a burden of over Rs 17,500 crore on the exchequer. Pensioners will also get their final installment of arrears. Remaining 60% of the total arrears have to be paid as the government implemented the new pay scales with effect from January 1, 2006 after the 6th Pay Commission report was approved by the Cabinet with modifications. The first installment of 40% of the total arrears were paid during the last fiscal. "It has now been decided that the remaining 60% of the arrears may now be paid to the concerned government servants," said a finance ministry's office memorandum. The memorandum is, however, silent on the date for payment of the final installment of arrears. According to the government calculations, the total arrears are estimated to cost Rs 29,373 crore to the government kitty. The memorandum further said that the government servants are encouraged to deposit their arrears in general provident fund (GPF) account. "As in the case of the first installment of the arrears, government servants would be permitted to deposit their arrears in their GPF accounts," the memorandum said.

For the Implementation of the SPC report State govt employees set to boycott work

LUCKNOW: The state employees will go on a one day strike on August 20 in support of their demand for the implementation of the Sixth Pay Commission report. The call for the strike has been given by the State Employee’s Joint Council, Uttar Pradesh. Prior to this the council members will hold a call attention dharna relating to their other demands at all district headquarters on August 8. Memorandums will be handed to the district magistrates to be forwarded to the chief minister. Mass awakening programmes will be held between July 20 and August 7. As a result, employees in banks, insurance companies, railways and medical representatives in the state will all boycott work in support of the nation-wide strike call. General secretary of UP Medical and Sales Representatives' Association (UPMSRA) Subodh Awasthi squarely blamed the Central government’s pro-American policies for inflation. He alleged that the measures being taken by the government to arrest price rise were faulty. He said Union finance minister P Chidambaram’s explanation that the unprecedented price rise was due to the soaring prices of petroleum products in international market was also illusory. Their main demands are implementation of PDS all over the country, immediate ban on forward trading on all essential commodities, slashing of taxes on petrol and diesel, stern action against hoarders.

Pay panel review: All eyes now on PM

NEW DELHI: Millions of central government employees, including those from defence and paramilitary forces, are eagerly waiting for Prime Minister Manmohan Singh's response to the changes suggested by a high-level committee that examined the proposals of the 6th Pay Commission. On Monday, the committee, headed by cabinet secretary K M Chandrasekhar and comprising secretaries of other key ministries, apprised the PM of the modifications made in the original recommendations, besides telling him about the financial burden that the implementation of the pay report would entail. Top government sources, however, maintained that the changes were "only minor" as the original report was in itself a complete exercise and the hikes suggested were "already satisfactory". They, however, indicated "some changes" in salaries and allowances of defence, paramilitary and police personnel. The review report is expected to be presented at the next meeting of the Union Cabinet and, if cleared, implemented thereafter. Sources said the entire exercise should not take "more than 10 days", provided the Cabinet does not call for clarifications. The implementation of the report's key financial proposals is likely to further aggravate the inflationary pressure that is already impacting the economy adversely. According to the original report, submitted on March 24, the proposals are to be implemented with effect from January 2006 and the employees are anxiously waiting to receive the arrears of 31 months (till July), which should be a good amount at all levels. The arrear payment burden itself would be over Rs 18,000 crore, but employee associations have argued that at the current salary levels, government servants are finding it hard to cope with rising prices.