22 March 2011

Cabinet Approves 6% DA Hike for Central Govt Staff

New Delhi | Mar 22, 2011
 
In a bid to provide relief from high inflation, the government today increased dearness allowance (DA) by 6 per cent to 51 per cent, benefiting over 50 lakh central government employees and 38 lakh pensioners.

"The decision to hike DA was taken by the Union Cabinet at its meeting here," a Union minister said.

The combined impact of the hike will be Rs 5,715.90 crore per annum. However in the next financial year, the burden on the exchequer would be Rs 6,668.52 crore after the additional 6 per cent DA payout is factored in from January 1 to March 31 this year.

The increased DA, which will be effective from January 1, is provided to government staff and pensioners to compensate them for rising prices.

Presently, the DA is paid at 45 per cent of basic pay. The increase in DA by 6 per cent would be in accordance with the formula prescribed by the Sixth Pay Commission for central government employees.

The decision will provide direct relief to around 50 lakh employees and 38 lakh pensioners.

The DA is revised twice a year, on January 1 and July 1.

The relief came amid high retail prices, as inflation has been ruling above 9 per cent.

The Consumer Price Index (Industrial Workers), which is the basis for revising dearness allowance, was 9.47 per cent in December and 9.30 per cent in January.

Headline inflation, based on movement in wholesale prices, was 8.31 per cent in February, much above the comfort level of 5-6 per cent. Food inflation, too, was hovering above 9 per cent.

07 March 2011

Professor Kehar Singh's letter to Secretary (Finance), Govt. of Punjab against Wrong Fixation of Pensions/Family Pension of University and College Teachers.

To

The Secretary,

Department of Finance,                                    

(Pension Policy & Coordination Branch,                   

Government of Punjab,                                   

Chandigarh                                                                                                                    Subject: Wrong Fixation of Pensions/Family Pension of University and College Teachers.

Sir/Madam,

This is in reference to your letter No. 3/39/09-3FPPC/1568 dated 30.12.10.  In the Annexure-B of this letter the pension of the teachers is supposed to have been fixed as per the criteria notified in Para 4.2 by the Pb. Government letters No. 3/23/09 3FPPC/885 dated 17th August 2009 and 3/23/09 3FPPC/201 dated 22nd Feb. 2010.  Para 4.2 of the letter dated 22nd February, 2010 was a clarification of the para with the same number in the earlier letter issued on 17th of August 2009.  The relevant portion of Para 4.2 reads as under:

 "the benefit of fixation of revised pension envisaged in para 4.2 of the aforesaid letter will be subject to the condition that full pension, in no case shall be less than 50% of the initial pay shown in column 8 of the schedule of the Punjab Civil Services (revised pay) rules 2009, against relevant Pay Band and Grade Pay corresponding to the pre-revised scale of pay in which the pensioner had last worked." 

The 22nd February, 2010 letter was aimed at removing the confusion, if any, in making calculations for the fixation of pension of pre 01-01-2006 pensioners. But unfortunately, while fixing the pension of the University and College teachers Para 4.2 has not been followed.
The proper connotation of the term initial pay in the revised pay scales of the teachers as per Punjab Government Notification No. 10/3/09-3 edu.1/3321 dated 02.09.2009 has not been kept in view as has been done in the case of Punjab Government employees. This is a discrimination against the Punjabi University Teachers because the pension rules applicable to them are same as for other Punjab Government Employees (Pension Scheme Rule 10,P.95 Punjabi University Calendar Volume I). Initial Pay is not necessarily the sum total of Basic Pay in the Pay Band and Grade Pay. In certain grades it may be so whereas in some other grades it may be quite higher than this (Annexure A) of the Pb. Govt. letter No. 3/39/09-3fppc/201 dated 22nd February 2010). To illustrate as to how Annexure B dated 30-12-2010 discriminates against the teachers we may take the case of pension for grade 31 employees in Annexure A for Punjab Government pensioners and pension of a Professor as per the Annexure B.

Annexure A
Serial No.
Pre-revised Scales of Pay
Revised Pay Structure w.e.f. 1.1.2006
Pension 50% of the Initial Pay.
Pay Band
 Grade Pay
 Initial Pay
31
16,350-20100
37400-67000
8900
48590
24295
Annexure B
Professor
16400-22400
37400-67000
10000
50890
23700


From the above table discriminatory application of the term Initial Pay as per para 4.2 of the aforesaid Government Notification is evident.

 In Annexure A there are 3 sub heads under the Revised Pay Structure w.e.f. 1.1.2006 viz. Pay Bands, Grade Pay and Initial Pay  where as in Annexure B only 2 sub heads that is Pay Bands and Grade Pay has been taken into consideration and the crucial sub head of Initial Pay has not been kept in view. This seems to have been done on the presumption that Initial Pay is equal to sum total of the Initial of the Pay Band and Grade Pay. As is evident from Annexure A this is not the case.

Till January 2011 Panjab University, Chandigarh and Punjabi University, Patiala have been rightly admitting pensions to their teachers in the light of the para 4.2 as per the table given below: 

Sr. No.
Designation
Pre-revised scales of pay w.e.f. 1.1.1996
Revised Pay Structure w.e.f. 1.1.2006
Pension (50% of the Initial Pay in col 5)
Family Pension (30% of the Initial Pay in col 5)
Pay Bands
Grade Pay
Initial Pay
1
2
3
4
5
6
7
8
1
Lecturer
8000-13500
15600-39100
6000
21600
10800
6480
2
Lecturer (Sr. Scale)
10000-15200
15600-39100
7000
25600
12800
7680
3
Lecturer (SG)
12000-18300
15600-39100
8000
30320
15160
9096
4
Lecturer (SG) with 3 years
12000-18300
37400-67000
9000
46400
23200
13920
5
Professor
16400-22400
37400-67000
10000
50890
25445
15267


Following your letter dated 30.12.2010 now they have lowered the pensionary benefits to the level of teachers working in Central Universities and Colleges.  This is violative of para 4.2 applicable to the College and University teachers in the State of Punjab.  Your letter of 30.12.2010 clearly states that "the benefit of revised pension/family pension envisaged in para 4.2 of the aforesaid letters (i.e. 17.8.2009 and 22.2.2010) will be available for fixation of pensioner/family pensioner of teachers and equivalent cadres in government colleges in the State".  Our contention is that the figures in the table fixing the pension have not been rightly worked out.  This is a computing mistake which can be rectified by taking basic pay (initial pay) of the teachers shown in tables 1 to 5 of Punjab Government notification No. 10/3/2009-Edu.1/3321 dated 2.9.2009 as has been done in the case of pre 1.1.2006 pensioners of Punjab Government.  Our main point is that if the same policy decision is applicable to the Punjab Government pensions and the teachers working in the Colleges and Universities of the State how come the teachers with higher basic pay in the pre-revised scales as well as the revised scales are entitled for lower pension as compared to the nearest scales of pay shown in Annexure-A fixing the pension for Punjab Government employees retiring before 1.1.2006.

In view of the above, it is requested that Annexure B of the letter No. 3/39/09-3 FPPC/1568 dated 30.12.10 be suitably amended in the light of the correct connotation of the term Initial Pay in Para 4.2.                        



Thanking You.

Yours faithfully

(Kehar Singh)

Followers

About Me

My photo
1080 Sector 39-B, Chandigarh, Punjab,, India
formerly Professor of English, Department of English, Punjabi University, PATIALA