Saturday, November 28, 2015


The  13th Kerala Philately exhibition KERAPEX 2016 is scheduled to commence from 7th Jan to 9th Jan 2016 at  Sree Sankara Hall Thrissur. For prospectus and other details please visit

Tuesday, November 24, 2015

7th CPC recommends to reduce HRA

The 7th Central Pay Commission has been recommended to reduce the percentage of House Rent Allowance for all categories of Central Government employees rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

 To read more on this please Click here

Setting up of implementation cell for 7th CPC report by MOF

India post payment bank

1.1 In the Budget 2015-16 speech in the Parliament, the Hon’ble Finance Minister announced the Government’s intention to set up the Payments Bank by Department of Posts to promote financial inclusion and ease access of the people to the formal financial system. The Department of Posts has received ‘In Principle’ approval from RBI on 7th Sept, 2015 for setting up of a Payments Bank.
1.2 The Payments Bank will be set up on a lean operating model. It will focus on financial inclusion by harnessing low-cost technology based solutions to extend access to formal banking especially in rural areas and among unbanked and under banked segments of the society.
1.3 The main objectives of the India Post Payments Bank will be to bring a large number of individuals and small businesses into formal banking channel by facilitating
 Demand Deposits - Savings account of upto Rs. 1 lac and
- Current Accounts with special focus on MSMEs, Small entrepreneurs / merchants, Village Panchayats, SHGs etc.
·         Direct Benefits Transfer (DBT) of social security payments of various Ministries to beneficiaries.
·         Utility bill payments for electricity, water, telephone, gas etc.
·         Payments of various Central and State Govt & Municipal dues and fees of various Universities / Educational institutions.
·         Person to Person remittances both domestic and cross-border with special focus on migrant labourers, low income households.
·         Distribution of third party financial products such as insurance, mutual funds, Pension & credit products.
1.4 Present status:
The Department of posts is seeking necessary Governmental approvals and preparing an implementation plan to set up the payments bank.

Easy steps to calculate new pension as per 7th CPC report

We here illustrate the method through easy 5 Steps to calculate your Basic Pension in  7th CPC  Recommendation

Easy steps to Calculate your Basic Pension in 7th Pay Commission

There are Two options have been given to Pensioners

First They have to calculate the Two options and whichever is benefit for them They can select higher amount as their Pension

Option No.1 .  The existing Pension may be multiplied by 2.57

Option No.2 . The Pay Scale  on their retirement and Number of increments they earned  to be taken for calculation

In that Case they should know their Pay Scale and Basic Pay drawn on the date of their Retirement and number increments they earned

By referring the Corresponding Pay scale in successive Pay Commission, they should identify their Sixth pay commission Pay band. If they Know their corresponding Pay Band in sixth Pay commission then it will be easy for them to arrive their Basic Pension to be fixed in VII pay commission.

After calculating the Basic Pension from the above two options, they can choose whichever is beneficial for them

Calculation for arriving your 7th CPC Basic Pension is described below through 5 Easy Steps

 Assume You retired at last pay drawn of
4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of 3000-100-3500-125-4500:

              Your Basic Pension as revised in VI CPC = 12,543

Calculation Option –I


Multiply Your Basic Pension with 2.57

                    Basic Pension (VI CPC)   x   2.57

= 12543 x 2.57 = 32235.70 ( Paisa to be rounded off rupee)

Your basic Pension As per VII CPC = Rs.32236

Calculation Option-II


–    Identify your corresponding Pay Level in Pay Matrix
–    For that you should know your Pay Band in VI pay commission

[The Pay scale details will be informed you by Concerned Pension Paying Authorities when ever your basic Pension was revised as per the successive Pay commission Recommendation ]

for example for this pay scale of
3000-100-3500-125-4500,  the corresponding  Pay Scale  and   pay band for Fifth and Sixth CPC respectively is given below

[Visit : To see the III, IV , V CPC Pay Scale ]

In IV Pay Commission Your Pay Scale is 3000-100-3500-125-4500
In V pay Commission Your Pay scale is 10000-325-15200
In Sixth Pay Commission Your Pay Band is 15600-39100 – Grade Pay is 6000

         In Seventh Pay commission your Pay Matrix Level is 11

Step –III

Minimum Pay at this level -11 is Rs. 67700

Total increment earned on your initial pay on the date of Retirement is 9

So Count nine cells from the cell assigned as Minimum Pay in that Level 11

your index number in that Particular Pay matrix Level 11 = 10

The figure in Level 11 and Index 10 = 88400

             50% of this Pay will be fixed as your Basic Pension

Hence your Basic Pension will be fixed at Rs.44200/-

Step- IV

Choose whichever is higher to fix your Basic Pension
Basic Pension in Option -1 = 32236
Basic Pension in Option -2 = 44200

You can select option 2 as the fixation for Basic Pension in 7th Pay commission

Your basic Pension in 7th Pay commission = 44200/-

Note : 1.

Those who are retired in Sixth Pay commission regime would be aware of their increment and Pay Band details. It will be easy for them to calculate their Basic pension in VII Pay Commission using this matrix.
For other it will be very difficult to find out their Pay scale and quantum of increment details as of now. Also It will take little time for Concerned Department to verify the Pensioners record to ascertain the number of increments earned in the retiring level

Note –II

So 7th pay commission recommended that in the first instance the revised pension may be calculated using Calculation Option -I and the same may be paid as an interim measure

[Your Present Basic Pension to be Multiplied by 2.57 = Rs .32236 ]

So Rs.32236 will be paid as Basic Pension as Interim Measure

After Checking the records of concerned individuals As per calculation Option –II

Then Rs.44200 will pe Paid as your Basic Pension

Subsequently the difference of higher amount also will be Paid as Arrears

Calculation of annual increment as per 7th CPC report

7th Pay Commission recommends 3% of the basic Pay for Annual Increment

Annual Increment in Seventh Pay commission remains same. 3% of Basic Pay has been recommended as Annual Increment. But calculation of Annual Increment differs in a way that Pay matrix has been evolved.

In the pre revised Pay, the exact 3 % of the Pay band + Grade Pay would be added in the Pay band on account of Annual Increment on 1st July of every year.

But here in 7th pay commission there is a possibility to get little more or Less than the three percent of Basic Pay. Because here our Basic Pay has to be moved one stage higher in the same Level. In Pay Matrix, each cell in that particular level is calculated such a way that it is 3% higher than the next cell. Since the figure rounded off to nearest hundred, exact three percent increase cannot be expected.
7th Pay Commission gave an Illustrative Example in Respect of Granting Annual Increment.

Suppose, Ms. ABC, who, after having been fixed in the Pay Matrix, is drawing a Basic Pay of Rs.32,300 in Level 4.

When she gets an annual increment on 1st of July, she will just move one stage down in the same Level.
Hence, after increment, her pay will be Rs.33,300.

Trade Unions fuming over 7th CPC report- 10 reasons why

While the 7th Pay Commission report recommendations have been a source of joy for hundreds of thousands of government employees, for the national trade unions linked to the Bharatiya Janata Party (BJP) and the Left, the hike has not been high enough and they have not kept quiet about it.

Trade unions have protested vehemently against the 7th Pay Commission and are looking for redressal of their grievances and contemplating action. They have also looked at strong industrial action to indicate their unhappiness and will be indicating soon what their future course of action can be. Here are the top 10 reasons why, they say, they are angry with the Seventh Pay panel report:

1. Proposed 7th Pay Commission hike is lowest in many decades and not in sync with inflation - least hike (proposed) in the last 30 years. Considering the inflation, it is unsatisfactory.

2. 7th Pay Commission has recommended a 16 per cent hike in net pay against projected 23.55 per cent.

3. There is a huge gap in maximum and minimum pay in the 7th Pay Commission report recommendations.

4. The gratuity ceiling recommended by 7th Pay Commission has been raised from Rs 10 lakh to Rs 20 lakh, the benefit of this will go to senior officials only.

5. 7th Pay Commission report has ignored sharp increase in prices justifying substantial upward revision in HRA and other allowances. Instead the commission has reduced rates of HRA from 30 per cent to 24 per cent of the basic pay in A Class cities and corresponding decrease in other cities which is a retrograde recommendation.

6. Doubts about the way the 7th Pay Commission has calculated the figures. For example, they calculated House Rent Allowance (HRA) at 3 per cent against the mandated 7 per cent.

7. As per commodity prices on Agriculture Ministry's website and on the basis of Labour Bureau data, the Basic Pay comes at Rs 11,341 while 7th Pay Commission calculation shows it at Rs 9,218. There is a lot of gap.

8. There is no clarity in the 7th Pay Commission report on the pay revision for lakhs of contract workers in government ministries as well as 3 lakh Grameen Dak Sewaks.

9. 7th Pay Commission is the only commission, which has reduced the allowances and due to which the growth in net income is only 14.28 per cent. (PTI).

10. 7th Pay Commission report is totally disappointing and beats logic. Employees and workers will meet on November 27 to protest against the recommendations of the 7th Pay Commission and discuss the issue.

NOTE: The 900-page report of the 7th Pay Commission headed by Justice A K Mathur was presented to Finance Minister Arun Jaitley with a recommendation that the new scales be implemented from January 1, 2016. The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.