Date of next Increment - Clarification from Finance Ministry

Very important order has been publishe by Finance Ministry regarding the date next increment...

F.No.1/1/2008-IC
Government of India
Ministry of Finance
Department of Expenditure
(Implementation Cell)
******

New Delhi, the 13^thSeptember, 2008

OFFICE MEMORANDUM

Subject:    Clarifications on CCS(Revised Pay) Rules, 2008

           The undersigned is directed to refer to the Central Civil Services (Revised Pay) Rules, 2008, notified vide G.S.R. No. 622(E) dated 29t August, 2008 and to state that clarifications are being sought regarding the date of next increment, the method of fixation of pay on promotion after 01.01.2006, use of fitment tables for cases of pay fixation under Rule 11 of CCS(RP) Rules, 2008, fixation fo pay of government servants who were on deputation on 1.1.2006 and got promoted in the cadre subsequently while still on deputation, etc.

2.      In this connection, the following clarifications are issued :- Clarification 1: The date of next increment

(i) As per Rule 10 of CCS(RP) Rules, 2008 there will be one uniform date of annual increment, viz. 1st July of every year. Government servants completing 6 months and above in the revised pay structure as on 1st of July will be eligible to be granted the increment. Accordingly, all Government servants who earned their last increment between 02.01.2005 and 01.01.2006 would get their next increment on 01.07.2006.

(ii) For those employees whose date of next increment falls on 01.01.2006, the instructions already provide for granting an increment in the pre-revised pay scale as on 01.01.2006 and then fixing their pay in the revised pay scales. Such Government servants would also get their next increment on 01.07.2006.

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 servants has an option under FR 22(I)(a)(1) to get his pay fixed in the higher post either form 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 band shall continue unchanged, but the grade pay of the higher post will be granted. Further re-fixation will be done on the date of his next increment i.e. 1st July. On that day, he will be granted two increments: one annual increment and the second on account of promotion. While computing these two increments, basic pay prior to the date of promotion shall be taken into account. To illustrate, if the basic pay prior to the date of promotion was Rs.100, first increment would be computed on Rs.100 and the second on Rs.103.

b) In case of Government servant opts to get his pay fixed in the higher grade from the date of his promotion, he shall get his first increment in the higher grade on the next 1st July if he was promoted between 2nd July and 1st January. However, if he was promoted between 2nd January and 30th June of a particular year, he shall get his increment on 1st July of next year.

Clarification 3: Use of fitment tables for cases of pay fixation under Rule 11 of CCS (RP) Rules, 2008

Rule 11 of CCS(Revised Pay) Rules, 2008 provides for fixation of pay in the revised pay structure subsequent to the 1st day of January, 2006. When the pay of a Government servant will be fixed as per Rule 11 on a date subsequent to 01.01.2006, the fitment tables annexed with this Department's O.M. of even number dated 30.08.2008 will be used as prescribed in the relevant provisions contained in para 2 of the O.M. The pre-revised pay to be reckoned in such cases will be the pay of the Governement servant on the day of such fixation.

Clarification 4: Fixation of pay of government servants who were on deputation and got promoted in the cadre subsequently while still on deputation

(i) In case the Government servant was on deputation on 1.1.06 and got promoted to a higher post in his cadre after 1.1.06, but was not granted proforma promotion under the 'Next Below Rule', his pay will get fixed w.e.f. 1.1.06 in the grade which he was holding on 1.1.06.

(ii) In case the Government servant had been granted proforma promotion under the 'Next Below Rule', his pay will be fixe using the provisions of the 'Next Below Rule' as explained in (iii) below.

(iii) In the revised pay structure, the pay of a government servant would be regulated in the following manner on grant of proforma promotion to him under 'Next Below Rule'.

(a) In case a Government servant on deputation to a post gets promoted in his cadre to a post in a higher grade, his pay in the pay band will be fixed with reference to the pay in the pay band of the employee immediately junior to him in the cadre of his service. However, the government servant in question would continue to draw the grade pay attached to the deputation post for the remaining duration of the deputation.

(b) In case a Government servant on deputation to a post in PB-4 gets promoted in his cadre to a post in HaG+, his basic pay will be fixed with reference to the basic pay of the employee immediately junior to him in the cadre of his service, but the total of pay in the pay band and grade pay of the deputation post will not exceed Rs.79,000.

(c) In case a Government servant on deputation to a post in PB-4 gets promoted in his cadre to a post in the apex scale, his basic pay will be fixed with reference to the basic pay of the employee immediately junior to him in the cadre of his service, but the total of pay in the pay band and grade pay of the deputation post will not exceed Rs.79,000.

(d) In case a Government servant on deputation to a post in HAG+ gets promoted in his cadre to a post in the apex scale, his basic pay will be fixed with reference to the basic pay of the employee immediately junior to him in the cadre of his service.

Clarification 5 : Fixation of pay of government servants who go on deputation to a lower post

(i) In case a Government servant goes on deputation to a post carrying a lower grade pay, his pay in the pay band would continue unchanged, but he will be granted the grade pay of the lower post for the entire duration of the deputation.

(ii) In case a Government servant in HAG+ scale goes on deputation to a lower post in PB-4, his basic pay in the deputation post will be fixed at a stage equal to his basic pay in the cadre of his service, but the total of pay in the pay band and grade pay of the deputation post will not exceed Rs.79,000.

(iii) In case a Government servant in the apex scale goes on deputation to a lower post in PB-4, his pay in the pay band will be fixed at the maximum of PB-4 (Rs.67000) and he will be granted the grade pay attached to the deputation post, but the total of pay in the pay band and grade paya of the deputation post will not exceed Rs.79,000. In case deputation is from the apex scale to a post in HAG+, the basic pay will be protedted in HAG+.

Clarification 6 : Procedure for placing employees in upgraded scales in case of merger of scales/upgradations recommended by the Sixth CPC.

(i) Where all posts in one or more pre-revised scales are merged with a higher pre-revised scale and given a common replacement scale/grade pay, the suitability of the incumbents need not to be assessed for granting them the higher replacement scale/grade pay and the incumbents will automatically be granted the replacement pay scale/grade pay recommended by the Commission. Their pay will be fixed in the accordance with the fitment table annexed to this Department's O.M. of even number dated 30.08.2008.

(ii) Similarly, in the case of upgradations recommended by the Pay Commission, i.e. where all posts in a particular grade have been granted a higher replacement pay scale/grade pay, the suitability of the incumbents need not be assessed for granting them the higher replacement scale/grade pay. The incumbents will automatically be granted the replacement pay scale/grade pay recommended by the Commission. Their pay in the pay band will be fixed with reference to their fitment table corresponding to pre-revised pay scale. However, the grade pay corresponding to the upgraded post will be granted.

Note: CCS(Revised Pay) Rules, 2008 define the term "basic pay" in the revised pay structure as the pay drawn in the prescribed pay band plus the applicable grade pay but does not include any other type of pay like special pay, etc. In the case of Government servants in the pay scales of HAG+ and above, basic pay means the pay in the prescribed scale.

3. Hindi version will follow.

(Alok Saxena)
Director

Source: www.persmin.nic.in

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State Government implement 6th paycommission

State Government implement 6th paycommission

There is good news for state government employees in Jharkhand as state government has decided to implement 6t Pay commission in the state.The decision by cabinet in Jharkhand comes on the heel of several other states deciding to implement the 6th Pay Commission recommendations in those states.The union government last month had decided to accept the 6th pay Panel recommendations.

It also issued notification on 30th August last month regarding the implementation of the pay panel recommendations.But unlike central government Jharkhand government will not implement the 6th pay panel report from 1st January 2006.

The Jharkhand government will implement the pay panel recommendations from April last year.P.K. Jajoria, secretary of the cabinet coordination committee of the state said, “The state government will implement the recommendations of the Pay Commission from April 2007”.He went on to add, “By implementing the recommendations, the state will bear additional financial burden of Rs.17.70 billion per annum.

The state will also bear burden of Rs.19.58 billion to pay arrears to the employees.”Unlike the union government, Jharkhand government will pay 60 percent of arrears in the current financial year and remaining 40 percent in 2009-2010.Uttar Pradesh chief minister has also announced to implement the sixth pay commission recommendations. She has also formed a committee to look into the issue of implementation of the report.

Professors, Lecturers may get heavy pay hike

Professors, Lecturers may get heavy pay hike

Professors and lecturers are all set to get hefty pay hike. Following the 6th Pay Commission implementation there was some disappointment among university and colleges teachers over the delay in implementation of the pay panel recommendation, but finally they too are set for substantial salary hikes.If everything goes well university teachers will get approximately 30 percent pay hikes on the lines of the Sixth Pay Panel recommendations.

University grants commission had set up a committee under a former vice chancellor of prestigious JNU to recommend the pay revision needed in teaching fraternity in the universities.

The GK Chadha committee was under fire recently for not being able to submit its report on time, the same day when Sixth Pay Commission presented its report.But Chadha committee has some good news for teachers besides pay raise. It has reportedly favoured raising of retirement age to 65, flexibility to accommodate talent through incentives, grant for working in remote and inaccessible areas and also emphasis on research.Chadha while making the announcement said, “We will ask all states to invoke a uniform policy on the age of retirement and re-employment of teachers. The uniformity is essential to rid India’s higher education sector of inter-regional disparities.

Chadha went on to add, “We will focus at the entry level, on those just completing their academics and contemplating a life of teaching. We want to lure them into the profession.”He added, “We cannot offer the red-carpet treatment that the corporate sector can, but we plan to offer them better research facilities to keep them (faculty) in our universities.”

Maternity Leave enhanced to 180 days and introduction of Child Care Leave

No.130l8/212008-Estt.(L)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
****

New Delhi, the 11th September, 2008.

OFFICE MEMORANDUM

Subject: Recommendations of the Sixth Central Pay Commission relating to enhancement of the quantum of Maternity Leave and introduction of Child Care Leave in respect of Central Government employees.

Consequent upon the decisions taken by the Government on the recommendations of the Sixth Central Pay Commission relating to Maternity Leave and Child Care Leave, the President is pleased to decide that the existing provisions of the Central Civil Services (Leave)Rules, 1972 will be treated as modified as follows in respect of civilian employees of the Central Govemment:-

(a) The existing ceiling of 135 days Maternity Leave provided in Rule 43(1) of Central Civil Services (Leave) Rules, 1972 shall be enhanced to 180 days.

(b) Leave of the kind due and admissible (including commuted leave for a period not exceeding 60 days and leave not due) that can be granted in continuation with Maternity Leave provided in Rule 43(4)(b) shall be increased to 2 years.

(c) Women employees having minor children may be granted Child Care Leave by an authority competent to grant leave, for a maximum period of two years (i.e. 730 days) during their entire service for taking care of upto two children whether for rearing or to look after any of their needs like examination, sickness etc. Child Care Leave shall not be admissible if the child is eighteen years of age or older. During the period of such leave, the women employees shall be paid leave salary equal to the pay drawn immediately before proceeding on leave. It may be availed of in more than one spell. Child Care Leave shall not be debited against the leave account. Child Care Leave may also be allowed for the third year as leave not due (without production of medical certificate). It may be combined with leave of the kind due and admissible.

2. These orders shall take effect from 1st September, 2008.

3. In view of paragraph 2 above, a women employee in whose case the period of 135 days of maternity leave has not expired on the said date shall also be entitled to the maternity leave of 180 days.

4. Formal amendments to the Central Civil Services (Leave) Rules, 1972 are being issued separately.

5. In so -far as persons serving in the Indian Audit & Accounts Departments are concerned, these orders are issue in consultation with the Comptroller & Auditor General of India.

6. Hindi version will follow.

TAX ON 6th CPC ARREARS

TAX ON ARREARS - GOVT.REQUIRES TO CLARIFY SERVICE

Thanks to 6CPC report implementation all Central Government employees expect to receive the arrears of salary (the increased wages) shortly. A part of this increase would be paid in the current financial year and the balance will be paid in the next financial year. An issue arises as to the taxability of the income likely to be received by the employees.

The income chargeable to tax under the head ‘salaries’ includes:Salary due from an employer in the financial year, whether paid or not; salary paid or allowed to an employee in a financial year, even though not due; any arrears of salary paid or allowed to an employee in a financial year.

Therefore, an issue arises whether only the partial income that is received in the current financial year would be liable to tax or whether the entire income which the employee is likely to receive in the current financial year and the next financial year would be liable to tax now.In this context, it is important to note the provisions of Section 192 of the Income-tax Act, 1961 (the ‘Act’), which specify the deduction of tax on salary by the employer.

As per these provisions, an employer responsible for paying salary shall at the time of payment deduct income tax on the amount payable to the employee. It is pertinent to note that employer is required to deduct tax only at the time of payment of salary.

Therefore, if no payment is made, no tax is required to be deducted by the employer.By implication, if only partial payment is made in current financial year then the government is required to withhold tax only in respect of part amount paid in the current financial year.

However, an issue still remains that even if the balance portion which is not paid by the government and on which no tax is deducted, whether the said amount would still be liable to tax in the hands of the employees in the current financial year. This issue requires deliberations as to whether the phrase ‘allowed to’ would cover the payment which is yet to be made to the employees and hence this requires further clarifications from the government.

It is also important to note that government employees are also entitled to relief u/s 89 in respect of salaries received in arrears in any one financial year which relates to earlier financial years. Briefly, relief is calculated by spreading the arrears over the past years to which they pertain i.e., the tax payer can get the benefit of relief at the time of the deduction of tax at source by requesting his employer concerned.

Special Allowance for child care for women with disabilities and Education Allowance for disabled children

No.1201l/04/2008-Estt. (Allowance)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances and Pensions

(Department of Personnel & Training)

New Delhi, the 11th Sep 2008

OFFICE MEMORANDUM

Sub: Recommendations of the Sixth Central Pay Commission- implementation of decisions relating to Special Allowance for child care for women with disabilities and Education Allowance for disabled children of Govt. employees.

Consequent upon the decision taken by the Government on the recommendations made by the Sixth Central Pay Commission for providing extra benefits to women employees with disabilities especially when they have young children and children with disability, the President is pleased to issue the following instructions:-
(i) Women with disabilities shall be paid Rs.lOOO/-per month as Special Allowance for Child care. The allowance shall be payable from the time of the child's birth till the child is two years old.
(ii) It shall be payable for a maximum of two children.
(iii) Disability means a person having a minimum Disability of 40% as elaborated in Ministry of Welfare's Notification No. 16-18/97-NI.I dated 1.6.2001. (Annexure)
(iv) The above limit would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%.

2. Reimbursement of Education Allowance for disabled children of Government employees shall be payable at double the normal rates prescribed. The annual ceiling fixed for reimbursement of Children Education Allowance for disabled children of Government Employees is Rs.24000. The rest of the conditions will be the same as stipulated vide OM No.l201l/03/2008-Estt. (Allowance) dated 2nd September, 2008 on the subject. OM No.12011/03/2008-Estt.(Allowance)dated 2nd September 2008 on the subject.

3.Disability means a perso having a minimum Disability of 40% as elaborated in Ministry of Welfare's Notification No.16-18/97-NI.I dated 1.6.2001. (Annexure).

4. These orders shall be effective from 1st September, 2008.

5. Insofar as persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller and Audit General of India.

6. Hindi version will follow.

Children Education Allowance Scheme - DOPT order issued...

Recommendations of the Sixth Central Pay Commission- implementation of decisions relating to the grant of Children Education Assistance and Reimbursement of Tuition Fee.

No.120 1l/03/2008-Estt. (Allowance)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances and Pensions

(Department of Personnel & Training)

New Delhi, the 13th Sep 2008

OFFICE MEMORANDUM

Sub: Recommendations of the Sixth Central Pay Commission- implementation of decisions relating to the grant of Children Education Assistance and Reimbursement of Tuition Fee.

Consequent upon the decisions taken by the Government on the recommendations made by the Sixth Central Pay Commission and in supersession of all earlier orders on the subject of Children Education Allowance and Reimbursement of Tuition Fee, the President is pleased to issue the following instructions: -

(a) Children Education Allowance and Reimbursement of Tuition Fee which were hitherto payable separately will be merged and will henceforth be known as 'Children Education Allowance Scheme'.

(b) Under the Scheme of Children Education Allowance reimbursement can be availed by Government Servants upto to a maximum of 2 children.

(c) Reimbursement as indicated above will be applicable for expenditure on the education of school going children only i.e., for children from classes nursery to twelfth,including classes eleventh and twelfth held by junior colleges or schools affiliated to Universities or Boards of Education.

(d) Henceforth, the reimbursement of Children Education Allowance shall have no nexus with the performance of the child in his class. In other words, even if a child fails in a particular class, the reimbursement of Children Education Allowance shall not be stopped.

(e) Reimbursement for the following items can be claimed under this Scheme:

Tuition Fee, admission fee, laboratory fee, special fee charged for agriculture, electronics, music or any other subject, Fee charged for practical work under the programme of work experience, fee paid for the use of any aid or appliance by the child, library fee, games/sports fee and fee for extra-curricular activities . This also includes reimbursement for purchase of one set of text books and notebooks, two sets of uniforms and one set of school shoes which can be claimed for a child, in a year.

(f) The annual ceiling fixed for reimbursement of Children Education allowance is Rs.12000.

(g) Under this scheme, reimbursement can be claimed once every quarter. The amount that can be claimed in a quarter could be more than Rs.3000, and in another quarter less than Rs.3000, subject to the annual ceiling of Rs.12000 per child being maintained.

(h) In case both the spouses are Government servants, only one of them can avail reimbursement under Children Education Allowance.

(i) Hostel subsidy will be reimbursed upto the maximum limit of Rs.3000 per month per child subject to a maximum of 2 children. However, both hostel subsidy and Children Education Allowance cannot be availed concurrently.

(j) The above limits would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by50%. 

2. In order to ensure that Government servants have no difficulty in claiming reimbursement, the procedure under this Scheme is being kept simple. Reimbursement should henceforth be made on the submission of original receipts on the basis of self-certification by the Government servant. 

3. These orders shall be effective from 1st September, 2008. 

4. Insofar as persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller and auditor General of India. 

6. Hindi version will follow.

INCREMENT ONLY ON 1st JULY EACH YEAR

INCREMENT ONLY ON 1st JULY EACH YEAR

HINDI VERSION STANDS REJECTED - ENGLISH VERSION REIETERATED BY MOF

CONFEDERATION CHARTER OF DEMANDS WILL INSIST INCREMENT DATE

Today The MOF issued a clarificatory order on date of increment, method of fixation of pay on promotion after 1.1.2006, Use of fitment table for cases fixex under Rule 11, Fixation of pay for those on deputation etc.

Accordingly the date of increment will be only 1st July every year. For Officials who have been in the Revised Pay Structure for six months from 1.1.2006 to 1.7.2006 for six months are eligible for increment on 1.7.2006. It is clarified clearly that those who have drawn their earlier incerment between 2.1.2005 and 1.1.2006 would be given their next increment on 1.7.2006. Those officials whose date of increment is 1.1.2006, they would be given increment in old scale before fixation in Revised Pay and then again on 1.7.2006 another increment in the Revised Pay.

However this clarification is not totally satisfactory to us. The increment of those officials fallilng between 2.1.2006 and 30.06.2006 is getting postponed. The increment of other officials falling between 1.8.2006 and 31.12.2006 is getting advanced. From the Confederation it has been decided to insist for the demand already placed before the Cabinet Secretary so that all officials get their increment in Revised Pay on 1st January instead of 1st July. This will eliminate postponing of increment for some officials while preponing for some others. The Revised Charter of Demands under preparation will be exhibited in the Confederation Website shortly will contain this demand also for our 19th September 2008 programme of 'Strike Declaration Day'.

Another Clarification for the officials on promotion who opt for fitment in Revised Pay Structure from the date of their next increment, the clarification of MOF is that on the day of promotion the official will get the same pay in his pay band but the grade pay of his promotional level will be granted and the further re-fixation would be done on the day of his new increment viz, 1st July when he would get two increments - one annual increment and the other the promotional increment.

There are other clarifications also about officials who opt for revised pay from the date of their promotion; Fitment under Rule 11 of CCS[RP]Rules 2008, Fixation for officials on deputation, Procedure to be adopted for placing the officials in cases of merger of scales / upgradations recommended by the 6th CPC.

As for as the merger of scales / upgradations are concerned, it is clarified that in cases where all posts in one cade or more in pre-revised scales are merged with a higher pre-revised scale of pay the officials would be granted the replacement pay scale/Grade Pay. In cases where all posts in particular cadre have been granted a higher replacement scale then the officials would be fixed in their pre-revised pay scale with the Grade Pay of the higher replacement scale.