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Clarification on increase in certain allowances 25% as a result of enhancement of Dearness Allowance w.e.f 01-01-2011

RBE No.78/2011
PC - VI No.261
Government of India
Ministry of Railways
(Railway Board)
New Delhi, Dated:01-06-2011
The General Manager (P),
All Indian Railways & PUs.
Sub: Clarification on increase in certain allowances 25% as a result of enhancement of Dearness Allowance w.e.f 01-01-2011.
   Please refer to Railway Board's letter of even number dated 01.10.2008 containing revised policy instructions on Children Education Allowance and Hostel Subsidy admissible to Railway servants based on the recommendations of Sixth Central Pay Commission as per DOP&Ts OM No.1201l/03/2008-Estt.(Allowance) dated 02.09.2008. Reference is also invited to Railway Board’s letter E(W)2008/ED-2/5 dated 13-10-2008 containing instructions on Special Allowance for child care for women with disabilities and Education Allowance for disabled children as per DOP&T’s OM NO.12011/04/2008-Estt.(Allowance) dated 11.09.2008. As per revised scheme, reimbursement limits on Children Education Allowance and Hostel subsidy would be raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%.
   2. Railway Board vide letter No.PC-VI/2008/1/7/2/1 dated 25-03-2011 has enhanced the Dearness Allowance payable to Railway employees from the existing rate of 45% to 51% with effect from 1st January, 2011.
   3. Consequent to aforesaid enhancement in Dearness Allowance to 51%, limits on reimbursement of Children Education Allowance & Hostel Subsidy shall go up by 25% w.e.f. 1st January, 2011. DOP&T vide Office Memorandum No.12011/01/2011-Estt.(Allowance) dated 04-05-2011 (copy enclosed) has issued clarification to this effect that Children Education Allowance and Hostel Subsidy allowance shall be enhanced by 25% as a result of enhancement of Dearness Allowance to 51% from w.e.f. 1st January, 2011. The clarification issued by DOP&T shall apply mutatismutandis in respect of Railway employees.
   Please acknowledge receipt.
(Debasis Mazumdar)
Joint Director Estt.(Welfare)
Railway Board
Source: AIRF
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Pay commission gains may not come from back date

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Pay commission gains may not come from back date

The windfall government employees receive by way of pay commission award arrears may no longer be forthcoming. The government is examining a proposal to implement pay commission awards prospectively on the lines of finance commission awards, as large arrears throw the finances of both the Centre and states in disarray.
"We are examining the suggestion," a finance ministry official told ET. He, however, added that the final call on the issue would be taken when the next pay commission is constituted. Pay commissions are usually set up at intervals of 10 years. The Sixth Pay Commission, the most recent, gave its recommendations in March 2008. It had proposed pay raises between 20% and 40% for government employees.

The finance ministry had told a parliamentary panel last week that the issue should be deliberated upon as retrospective implementation of pay commission awards has had adverse impact on the finances of the Centre as well as the states, a government official privy to the meeting said. Many state governments had expressed concerns over the issue of arrears. States set up pay commissions for their own employees after the pay commission for the central government employees submits its report.

"While many reforms can and should be contemplated to end this self-inflicted distortion, one action that could be taken immediately is that of making the pay award commence from the date on which the recommendations of future pay commissions are accepted by the government," the 13th Finance Commission had said in its report.

The burden of arrears on the central government from the Sixth Pay Commission award was Rs 28,160 crore on a salary base of Rs 44,360 crore. This was because the recommendations of the panel announced in 2008 were implemented retrospectively from January 1, 2006.

To save itself from a larger fiscal trouble, the Centre disbursed the arrears in two installments: 40% in 2008-09 and 60% in 2009-10. The arrears contributed significantly to the Centre overshooting its target in 2008-09, ending the year with a fiscal deficit of 6% of the gross domestic product (GDP) against the budgeted 2.5%. The fiscal deficit rose to 6.4% of GDP in 2009-10 as pay commission arrears pushed up the expenditure when the government was battling slowdown in revenues.

The Centre had to readjust its fissense but can work only if pay commission reports come well in time for implementation prospectively," said D K Srivastava, director, Madras School of Economics. Unlike the private sector, the government does not give annual salary hikes to its employees. Instead, it gives out dearness allowance twice a year to compensate for the rise in prices. The periodic pay commissions help adjust government salaries to market benchmarks. Most experts find the system flawed, as the performance benchmarks are not included in the salary revisions. The Sixth Pay Commission had recommended a performance related pay for government employees.

cal goal post for the subsequent years. It has budgeted a fiscal deficit of 4.6% of GDP for 2011-12, which is projected to drop to 3.5% in 2013-14. The finance commission had said if the Centre implemented pay awards prospectively, it would give state governments an opportunity to time their awards in a way that the need for arrears does not arise.

"If finance commissions are able to present their inter-governmental recommendations without any need for retrospective fiscal transactions, then the same should be possible in the case of pay commission as well," the commission had reasoned in its report.

Source : The Economic Times

Job Highlights in Employment News From 04 June 2011 to 10 June 2011

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Job Highlights in Employment News From 04 June 2011 to 10 June 2011

1. Bank of Baroda requires Specialist Officers in various disciplines.

2. Saptagiri Grameena Bank requires Officers Scale-II, Officers Scale-I, Group ‘A’ and Office Assistants-Group ‘B’.

3. The Indian Navy invites applications from unmarried male Indian citizens for permanent Commission Officers in Law Cadre of Executive Branch.

4. Employees’ State Insurance Corporation, Raipur requires Stenographer (Hindi) and Lower Division Clerks.

5. Staff Selection Commission, Western Region invites applications for various posts.

6. Bhabha Atomic Research Centre Facilities, Kalpakkam requires Stipendiary Trainees Category-II.

7. Pondicherry University requires Professors, Associate Professors and Assistant Professors.

8. Indian Bureau of Mines, Nagpur requires Senior Technical Assistants, Electrician, Assistant Store Keepers etc.

9. Indian Government Mint, Mumbai invites applications to recruit Skilled Technicians.

10.Steel Authority of India Limited, Bhilai requires Attendant-cum-Junior Staff Assistants (Trainee) and Attendant-cum-Technicians (Trainees).

Source : Employment News

Extension to the scheme of “Honorary Visiting Specialists” in all the Railway Hospitals all over Indian Railways

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New Delhi, dated 01/06/2011

The General Managers,
All Indian Railways and Production Units,
DG/RSC/Vadodra,DG/RDSO, Lucknow,

Subject:- Extension to the scheme of “Honorary Visiting Specialists” in all the Railway Hospitals all over Indian Railways.

Reference:- Railway Board’s letter no.2001/H-1/l2/40 dated 15.12.2005, even letter of even no. dated 27.06.2006 and 29.06.2009.

   In continuation of the above mentioned letters to introduce the scheme of ‘Honorary Visiting Specialists” sanction of the Ministry of Railways is hereby accorded for further extension of the scheme from 01.07.2011 to 30.06.2012 in all the Railway Hospitals all over Indian Railways.

   Honorary Visiting Specialists who have been engaged or accorded sanction for extension up to 30.06.2011, their term may now be extended for a period of one year w.e.f. the date they have taken charge of their posts.

   All other terms and conditions, remain the same as given in the office order no. 2001/H-1/l2/40 dated 15.12.2005 and 2005/H-l/12/34 dated 27.06.2006.

   This issues with the Concurrence of Finance Directorate of the Ministry of Railways.

Executive Director, Health (Plg.)
Railway Board.

New Delhi, dated 01.06.2011

Source : AIRF


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