Friday, July 29, 2016


A miserable 2 per cent

On June 30, headlines across newspapers were on the Union government having approved the Seventh Pay Commission recommendations. The Economic Times headline read, "Central staff hit pay dirt: An early Diwali". The newspaper said the government had accepted the recommendations doling out 'hefty' pay hikes. The salaries were expected to increase in the range of 14 per cent to 23 per cent. The bold fonts also announced that the lowest salary was to increase from Rs 7,000 per month to Rs 18,000. The highest salary, received by the cabinet secretary, was to go up to Rs 2,50,000 from Rs 90,000.
Sounds huge, does it not? But we need to analyse this. What is the bonanza and what are the hefty pay hikes which are speculated to be “fuelling inflationary pressures"?
Actually, the salary of Rs 7,000 and Rs 18,000 are not comparable. The equivalent of the Rs 7,000 basic salary, which was fixed 10 years ago and currently applicable with the dearness allowance added on, is Rs 15,750 (Rs 7,000 basic plus 125 per cent DA). In the salary of Rs 18,000 now announced, the DA is subsumed. Thus, a more accurate comparison would be the present salary of Rs 15,750 and the new salary of Rs 18,000. Similarly, the cabinet secretary at present receives Rs 2,02,500. The newspapers also announced that the total outgo as a consequence of the hike was expected to be Rs 1 lakh crore.
The comments on social media are more expressive! They question whether government employees actually deserve higher salaries: "Being paid more for what?", "More pay for less and less work", and "Babus don't deserve a hike." In fact, it is speculated that these increases will fuel inflation. Another school of thought believes that it will kickstart spending, thus generate demand and hence increased economic activity.
CANDID TALKIllustration: Bhaskaran
The Pay Commission is announced once in ten years. Thus any increase in basic salary comes about once in ten years. Even if we were to assume that this Pay Commission has brought about a hike of 20 per cent, it would tantamount to a simple rate of 2 per cent per annum. Which employee in the private sector would be content with a 2 per cent per annum hike? A couple of years ago, I was pleasantly surprised to hear of the bonus received by one of the youngsters in the family. I found that his annual bonus alone was more than the sum of the total salary earned by me over my entire career! He could afford at least two vacations abroad for himself and his kids every year, travelling business class. My wife and I have never been on any vacation as yet. At most, every year we visited our parents using up my earned leave or she would accompany me if I travelled on work. For him the weekend is a total break from work—he gets no official calls over the weekend. Mine was a 24x7 job when I could not refuse anyone who called me. Once when my wife reminded the caller that he had called on a holiday, he had the gumption to remind her that official phones were given to government functionaries so that they could be contacted all the time!
There is then the fear that the pay increase will cause financial difficulties to state governments. True, it will. However, prudent financial management requires constant mobilisation of resources. However, considering the fact that we have just about an election every year, to local bodies or state legislatures or the general election, very few governments can take appropriate measures to increase taxes or tap methods to raise resources. If you cannot take harsh decisions to raise resources, why blame government employees who get a paltry increase of 2 per cent per annum?
I acknowledge that government employees are not the most popular guys. To a large extent, we are to blame for this. This perception needs to be addressed and only we can do that with our own endeavours and actions. However, if the general public still continues to grudge the paltry increase, they must realise that if you pay peanuts you get only ..........!
Former comptroller and auditor general, Rai is chairman of Banks Board Bureau.

Tuesday, July 26, 2016

7th Pay Commission hikes notified, to bring cheers to 1 crore govt employees
Updated: Jul 26 2016 11:12 AM | Written by FE Online

7th Pay Commission hikes notified: The hike will result in increase in salaries in the range of Rs 7000 to Rs 18,000 per month. (PTI Photo)

Clearing the final hurdle towards payout of the 7th Pay Commission hike in salaries, the government has issued notification giving effect to the panel's recommendations. The notification was issued on Monday.

Monday, July 18, 2016


Pension Fund Regulatory and Development Authority (PFRDA) has introduced new features for
the benefit of National Pension System (NPS) subscribers, including an mobile app.
According to the statement, through the mobile app, ‘NPS by NSDL e-Gov’, subscribers can raise a request for transaction statement for a particular financial year that will be sent to the registered mail ID at end of the day.
Now, the NPS subscribers can view his/her NPS account, latest details of scheme wise units along with latest NAV and the total value of the schemes, details of the last five contributions credited, can change contact details (Telephone/Mobile no/Email ID), change password/security Question add/modify his/her password and set security question (for password reset) through Mobile App, it added.
×The subscribers also can now update/modify their address on their own using Aadhaar based authentication.
The statement said a subscriber whose bank has not confirmed (rejected) his/her KYC verification request can now update the address details and confirm KYC using Aadhaar based authentication.
Besides, the eNPS subscribers can now access the Central Recordkeeping Agency (CRA) system immediately after registering without waiting for physical I-PIN to be dispatched.
Currently, NPS has over 1.13 crore subscribers with total asset under management of more than Rs 1.08 lakh crore.
PFRDA is mandated to promote old-age income security and has been entrusted with the responsibility to regulate, promote and ensure orderly growth of NPS and other pension schemes not regulated under any other enactment.
Mobile app is now available in Google Play store.

Thursday, July 14, 2016

INDIAN BANK P.O. recruitment announcement!

PRESS RELEASE 12.07.2016
All India Bank Strike on 29th July, 2016
By 10 lacs Bank Employees and Officers.
At the call of United Forum of Bank Unions
Against Central Government's retrograde banking reforms
At the call of UNITED FORUM OF BANK UNIONS consisting of 9 trade unions of bank employees and bank officers ( AIBEA , AIBOC, NCBE, AIBOA, BEFI, INBEF, INBOC, NOBW, NOBO), 10 lacs of bank employees and officers working in Public Sector Banks, old Private Banks, Regional Rural Banks, Foreign Banks and Co-operative Banks will observe One Day Protest Strike on 29th July, 2016 to oppose the anti-people banking reform policies of the Central Government.
Demands: Halt retrograde Banking Sector reforms
1. Do not privatise banks

Monday, July 11, 2016

AIBEA, AIBOA & SSBEA : 12th and 13th July, 2016 Strike Deferrred.