Interim Relief – A 44 Years Old Struggle ..... !!!

Interim Relief – A 44 Years Old Struggle ..... !!!

In any nation, the contribution of government employees, in the welfare schemes and in other activities leading to the growth and development of the nation is very crucial. No one can deny this statement and it holds good for India also.

The 6th Pay Commission for the Central Government employees was implemented from 1.1.2006. Thought it contained many good aspects, it did not include recommendation for 50% DA. This terribly disappointed all Central Government employees. One question that arises in everyone’s mind is:

Why the 50% DA Merger, which was given in the 5th Pay Commission, was not given in the 6th Pay Commission?

They also ask if there is any valid reason for this.

1970 – 2014

Confederation and unions have been fighting continuously for the demands of 50% DA merger and Interim Relief. The Interim Relief problem is not a new one. Even in 1970, it was got by employees only after a lot of struggle. From 1970 to 1996 Interim Relief was provided in many occasions to compensate for the rising inflation.

Only in the in the 5th Pay Commission, Interim Relief was not provided. This is because 50% DA Merger was implemented. But in the 6th Pay Commission, as suitable recommendations were not made, problems related to 50% DA Merger and Interim Relief have begun to surface.

Important Reasons for the Problem

The problem began solely due to the fact that the Pay Commission is set up only once in ten years, which is really a long gap!

Only to cope with inflation in the big time gap of ten years, do employees need 50% DA Merger and Interim Relief.

In the previous Pay Commission, Central Government employees got these favours. If the Pay Commission or Pay Revision happens once in five years, situations like this will not arise.

Will it happen at least in 7th CPC ?

All the Central Government employees expect if this problem, which began in 1970 and continues till date will be solved through the 7th Central Pay Commission.

I have included a table below for your view, which shows the Interim Relief orders and other related details which were provided to employees from 1970s.

Sl.No	Office Memorandum	Subject	Dated
1	7(23)/E.III/96	Grant of Interim Relief to the Central   Government employees	06-09-1996
2	7(13)-E.III/96	Grant of Interim Relief to the Central Government employees – Clarification	06-05-1996
3	7(26)/E.III/93	Grant of Interim Relief to the Central Government employees – Clarification	19-08-1994
4	7(26)/E.III/93	Grant of Interim Relief to the Central Government employees	27-09-1993
5	7(32)-E.III/85	Grant of Interim Relief to Central Government employees on the basis of the 4th Pay Commission – question whether the benefit is applicable to employees of Autonomous bodies	14-05-1985
6	7(32)-E.III/85	Grant of Interim Relief to the Central Government employees	29-04-1985
7	5(56)-E.III/93	Notification – Amendment to Terms of Reference for providing Interim Relief	16-02-1985
8	7(39)-E.III/83	Grant of Interim Relief to the Central Government employees	24-08-1984
9	7(39)-E.III/83	Grant of Interim Relief to Central Government employees – question whether the benefit is applicable to employees of Autonomous bodies	28-11-1983
10	7(39)-E.III/83	Grant of Interim Relief to the Central Government employees	15-10-1983
11	7(39)-E.III/83	Grant of Interim Relief to the Central Government employees	02-08-1983
12	8(5)-E.III(A)/70	Interim Report of the Third Pay Commission – Grant of Interim Relief	07-10-1970
13	8(5)-E.III(A)/70	Interim Report of the Third Pay Commission – Grant of Interim Relief	30-09-1970

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Bank staff may come under Seventh Pay Commission ..... ????? -- NEWS

Even after several rounds of talks between bank employee unions and the Indian Banks Association (IBA), there seems to be no consensus on the quantum of salary hike for over 800,000 employees at different public sector lenders.

While the IBA has indicated that the maximum hike that can be offered to employees is about 11%, unions are demanding a 25% raise.

With the stalemate still continuing, sources said a proposal could also be considered to bring them under the purview of the Seventh Pay Commission, which has already been constituted. A large section of bank employees are, however, unwilling to do the same.

“There needs to be an end to the stalemate and this is an option that has also come up,” an official source who refused to be identified said.

IBA chairman, TM Bhasin, however, told HT that there was no proposal to bring bank employees under the purview of the pay commission. “IBA has no such consideration and no proposal has come to the IBA,” he said.

“There have been some reports of bringing the bank employees under the purview of the pay commission but we are completely opposed to such a move,” said CH Venkatachalam, general secretary, All India Bank Employees Association.

Hindusthan Times…..//copy//

MNREGA provisions should not be diluted: Economists write to PM Modi

New Delhi: Several leading economists have said that Prime Minister Narendra Modi should not dilute the provisions of the rural work guarantee programme, MNREGA, which has provided economic security to millions of poor.

The signatories to an open letter to the Prime Minister include Dilip Abreu (Princeton University), Pranab Bardhan (University of California Berkeley), V Bhaskar (University of Texas at Austin), Jean Drèze (Visiting Professor, Ranchi University), Abhijit Sen (former Member, Planning Commission) and Dilip Mookherjee (Boston University).ters

The MNREGA, they said, was enacted in 2005 with unanimous support from all political parties and it will have a "far reaching" impact on the much-needed economic security to the lives of millions of people who are on the margins of subsistence.

"For the first time, the Central Government is imposing caps on MNREGA expenditure on state governments, undermining the principle of work on demand," they said in the letter.

"The message seems to be that the new government is not committed to MNREGA and hopes to restrict it as much as possible. We urge you to reverse this trend and ensure that the programme receives all the support it requires to survive and thrive," it added.

MNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act.

The letter, signed by 28 economists, said the Central Government appears to be considering an amendment aimed at restricting MNREGA to the country's poorest 200 districts.

The economists have opined that the programme could and should do even better but said that the gains that have been achieved are substantial and amply justify further efforts to make it a success.

"This runs against a fundamental premise of the Act: gainful employment that affords basic economic security is a human right. Even India's relatively prosperous districts are unlikely to be free from unemployment or poverty in the foreseeable future," the letter added.

PTI

Indian Pension System Among ‘World’s Worst’ -- NEWS

New Delhi: India, China Japan and South Korea are among the worst-ranked countries on Pension system, while Denmark has the world’s best pension system, followed by Australia and the Netherlands, a survey by consultants Mercer released on Monday showed.

The United States scored a C, with 57.9 out of 100 points, in the global Pensions Index of 25 countries, on par with France, Poland and South Africa.

The top three scorers retained their positions from 2013, with 82.4 for Denmark, 79.9 for Australia, and 79.2 for the Netherlands. 

The rankings are based on factors such as adequacy, sustainability and integrity of the retirement income system.(survey report)

Britain ranked ninth, below Sweden, Canada and Chile, the annual survey showed.

China, India, Indonesia and South Korea fared among the worst, with scores of 35 to 50, as their retirement income systems are in the early stages of development.

The Indian statutory retirement age is 60 for men and women, while Denmark has raised the retirement age to 67 from 65 for citizens born in 1955 or later, while it will be hiked further for those born after 1962.

Britain’s plan to abolish a 55 percent tax levied on pension savings is likely to hurt the country’s global pension ranking next year, Mercer said.

Britain improved its ranking this year, with a score of 67.6 versus 65.4 in 2013, helped by “higher contributions through the continued introduction of auto enrolment,” Mercer said.

“The results highlight that introducing mandatory auto-enrolment can contribute to the UK’s efforts in ensuring an adequate and sustainable retirement system,” said Deborah Cooper, partner at Mercer.

Citing proposals by UK Chancellor of the Exchequer George Osborne, Mercer cautioned that radical reforms to abolish restrictions on accessing pension savings before the age of 55 would “likely negatively impact on the UK score next year.”

Osborne caught Britain’s pensions industry by surprise in March when he said he would scrap a rule forcing many people to buy an annuity, a Financial product which converts a retiree’s pension pot into a guaranteed income.

As of April, people will also face much less of a tax penalty if they access their pension savings early at the age of 55.

The study is published by the Australian Centre for Financial Studies (ACFS) in conjunction with Mercer and is funded by the Victorian State Government.

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