Monday, May 15, 2017

7th CPC HRA Rate: Logic behind demand of 30%, 20%, 10% instead of 24%,16%, 8%

JCM (Staff Side) has explored the logic behind demand of House Rent Allowance at the existing rate, the 7th CPC has recommended the reduced rate.  A note on HRA has been sent to Committee on Allowances by the JCM (Staff Side).  Full text of note on HRA by JCM (Staff Side) is furnished below:-

House Rent Allowance to Civil Servants
Housing accommodation is provided to a small segment of the Civil Servants. While the percentage of satisfaction is very high at the senior level Officers, Employees at the lower levels are to depend upon the market for a dwelling place. Of late recruitment at Gr B and C levels in Central Govt Offices is on the basis of an all India Examination and the regional recruitment which was in prevalence a decade back has been dispensed with. Once, recruited, he/she is perforce to be posted outside his/her home state making it necessary to search for a dwelling unit at the place of his/her posting and compete with those workers in the private sector whose salary levels in certain cases are phenomenally high. Housing in the country, despite introduction of various projects, tax concessions etc, continues to be a seller‟s paradise. A simple scrutiny of the rate of increase in the cost of construction and the rates quoted by the property dealers, real estate agents and tenant facilitators will reveal the extent of escalation in rent over the last a decade.

7th CPC has made a bald statement on HRA

In Para 8.7.14 the 7th CPC has made a bald statement that with the increase in Basic pay, most of the employees will be able to afford rented houses as per their entitlement. The Chart given under Para 8.7.14 indicates the rent increases over a period between 2006-14. The rent is shown to have gone up by 118% by 2014. The Commission has sourced the House Rent Index figures from AICPI (IW). We have no hesitation to state that the Commission's observation based upon the most unreliable data must be discarded. Even according to the said data, which only indicates the figures up to 2014, the registered increase was 118%. The progression between 2009 to 2014 from 136 to 168 gives an average increase of 22 points. This reads as much similar to the progression of the AICPI (IW) prepared by the Indian Labour Bureau Shimla, whose commodity prices have been adopted by the 7 CPC for minimum Wage computation.

How divorced those rates are from the reality in the market has been explained with facts and figures in our letter dated 10.12.2015 to the Chairman, Empowered Committee of Secretaries. Even if one bases the computation on such unreliable data, the hypothetical progression of the housing index by end of 2015 shall be 279-290 which warrant an increase by 136%.

Relation of Index figures with HRA
Relating the index figures indicated in chart under Para 8.7.14 to the DA percentage as on 1.1.2016 (125%), the ratio obtaining both in H1 and H2 i.e. 123 to 260 (2014) and 126 to 268 (2014) are 2.11 and 2.13 respectively. If the same is calibrated to 125% as on 1.1.2016, the ratio shall be 2.64 and 2.66. This will necessitate to raise the HRA to 33.13% in Metro Cities, 22% in Y Class Cities and 11.12% in Z class towns.

"The hypothetical progression on average basis will also make it necessary to compensate housing expenses at 29.7% in Metro Cities and 19.74% in Y class Cities and 9.87% in Z class towns."

The Commission is on record to state that the house rent factor in AICPI (IW) is on an average 15.27. The 6th CPC has indicated the factor at 8.67 and has been on record to state that the factor is not uniform at all places. The rates between Metro cities and small towns vary violently. This apart the Commission has applied a factor of 0.8 to all allowances, which are not cost indexed on the specious plea that wages per- se has been increased. While the Basic wages registered a paltry rise of 14% over a period of ten years (1.4% per annum) how justified is the stand of 7th CPC to apply a factor 0.8 to suppress the quantum of allowances is beyond comprehension. The Commission has proceeded with the assumption that the grant of 30,20 and 10% of the determined basic pay was a full and perfect reimbursement of expenses incurred by the Government employees on housing, which is undoubtedly erroneous as could be evidenced from the observation of the 6th CPC itself. Even if all these untenable contentions of 7 CPC and the unreliable statistics are taken into account, still it is clear that in order to maintain the present compensation level, the commission ought to have maintained the status quo in respect of rates of HRA and should not have reduced it by the application of 0.8 factor.

Request to retain HRA @ 30, 20 and 10 percent
We, therefore, request for the reasons adduced above, that the HRA may be retained at the levels determined by 6th CPC i.e. 30, 20, and 10 per cent of Basic pay for X,Y, Z class of cities and towns respectively.

Dearness Allowance

01.01.2007 = 06%
01.01.2008 = 12%
01.01.2009 = 22%
01.01.2010 = 35%
01.01.2011 = 51% (25% increase in certain allowances)
01.01.2012 = 65%
01.01.2013 = 80%
01.01.2014 = 100% (25+25 = 50% increase in certain allowances)
01.01.2015 = 113%
01.01.2016 = 125%

HRA (as per para 8.7.9 of VII CPC report)
X 1.791.79x12580= 2.80
 = 3.23
= 4.56

HRA (as per para 7.8.14 of VII CPC report)

2006H-1=123Ratio 2.11 at 100 point
2006H-2=126Ratio 2.13 at 100 point

HRA at 125 points
2014 – H/1
= 2.64
2014 – H/2

Friday, May 5, 2017

Supply of POS (Swipe Machines) to all HOs in India

Supply of POS (Swipe Machines) to all HOs in India

Click below to download the detailed report

Click Here to view the list of Head Offices to which SBI POS machines are being supplied for use in MPCM counter of Head Post Offices for booking of registers/speed post articles.

Saturday, April 15, 2017

Implementation of Cadre Review Coimbatore Division

Implementation of Cadre Review
Coimbatore Division

SSPOs memo No A-1/ Cadre Restructuring/LSG dated at Coimbatore 641001 the 11.04.2017

T/S PA Posts Upgraded to LSG from 15.04.2017

1. Single Handed SOs                        - 24 
2. Double Handed SOs                       - 14 
3. In Divisional Office                        - 01 
4. Head Post offices                            - 01  
5. In Postmaster Grade III  offices     - 01
6. In Postmaster Grade II    offices    - 02
7. Treasurers                                       - 31
8. In CPC                                            - 02
9. In BPC                                             -01

Total LSG Posts Created                  77

Consequently 77 PA Posts has been treated as Abolished.......

Impact on rotational Transfer 2017

1. Only PA Posts can be rotated for 2017
2. Preference would be given for those who have completed their tenure..
3. Transfer at Request will also be considered.
4. PAs cannot apply for transfer to SPM Posts or PA officials cannot be transferred to SPM Posts even at Request or on interest of service.

Filling of SPM Posts..

1. Will be on Promotional Hierarchy ..
2. Those who have been promoted to LSG Cadre can alone apply for the Post of SPMs in single and double handed Offices.

Filling up of Treasury Posts ..

3. LSG Officials can apply for the Post of Treasurer in identified offices ( Treasury Tenure will be likely to get modified as 4 years )

Other Posts 

4. LSG Officials can also apply for the newly created Posts in DO, CPC, BPCs

Cases where Posts Cannot be filled up 

1. When there would be Posts lying vacant after Posting of LSG Officials within the Division, the vacant posts can be filled up by..

a. LSG Officials of other Divisions .
b. Senior most T/S PAs on Adhoc Basis..

Cases where Officials cannot be housed in the same Division..

There may be instances where the number of officials would be higher than the Promotional Posts, then in that case the officials have to opt for the nearest Divisions..

Filling of LSG Posts under Circle Cadre...

Since the LSG Posts are Circle Cadre and liable for allocation within the circle , Initial allotment for the Promoted officials would be within the Region and within the Division as well..

This allotment would be based on the number of Posts created in the Parent Division of the Official.

If the Official falls junior most in the Promotion list for a DIVISION and if there is no sufficient LSG Posts in the Division , the official may be allotted to the Divisions where there is sufficient Posts . This would be within the Region Only..

Surplus Officials of the Region 

If there are officials surplus after filling up of all the LSG Posts in the Region , there are chances that an Officials would be alloted to the next Region.

Cases of Declination and Impact on the Officials..

1. Officials Declining regular Promotion would not be able to get their next MACPs and likely to get postponed until promotion is accepted.

2. Officials likely to Retire within a year or three and if there is no chance of MACPs may opt to Decline their Promotion.

3. Officials like to get MACP within 6 Years should accept the Promotion or else there would be heavy financial loss in the Retirement Benefits.

4. There are wider chances that those officials retiring within 10 years would get promoted upto HSG I level within 10 years.  

5. Officials who have completed 14 to16 years of service should accept the Promotion if listed and get a wider chance to get promoted to HSG II with their next MACP.

Financial Impact on officials Posted to Rural Areas where the HRA is lesser than the Actual Drawn and Offices with quarters facility.

1. Considerable loss to income / allowances would be there for officials posted in stations with lesser HRA than actually drawn by the Official. 

2. Officials may also have to loose full HRA allowance if the Post Office in a rural area is being attached with Quarters . ( Of course many quarters are resided by ghosts) 

3. Shifting of Family and creation of new establishment at the new place would also cost them more.

4. Many Officials have to spend a lot for transportation daily.

5. It is Advised to Consult a Good Financial Adviser before proceeding on transfer / Promotion to the new Place.

6. Studies to children would also get affected during the period...

Remedies ...

1. Officials should be Posted in a Manner that they are not dislocated and resulting in financial loss.  This will also reduce the number of officials declining the Promotion.

2. Officials should be occupied within the Division .

3. Surplus officials should be provided with nearest Division and should be provided  Transfer to parent Division as and when Vacancy arises .

4. A Separate waiting list should be maintained at Regional level for Transfer and Posting of officials who where provided nearest Division in the original transfer process.

5. Preference should be given to surplus officials posted in nearest divisions in the Yearly RT.

6. LSG Cadre should be Brought Down to Regional Cadre .

Wednesday, January 18, 2017