Enhancement in the rate of various allowances by 25% as a result of enhancement of dearness Allowance w.e.f. 01.01.2011

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

PC-VI No.263
RBE No. 87

No.F(E)I/2011/AL-28/18

New Delhi, dated 13.06.2011

The General Managers,
All Indian Railways etc,
(As per Standard Mailing List)
Sub: Enhancement in the rate of various allowances by 25% as a result of enhancement of dearness Allowance w.e.f. 01.01.2011.
In accordance with the recommendations of 6th CPC, the rates of various allowances admissible to different categories of railway staff were revised/doubled. The 6th had also recommended that the rates of these allowances will be increased by 25% every time the Dearness Allowance goes up by 50%. Railway Board accordingly issued instructions in respect of various allowances listed in the enclosed Annexure alongwith the letter references under which Railways were authorized to implement the same.
2. Subsequent to enhancement in the rate of Dearness Allowance to 51%, the matter regarding revision in the rate of various allowances has been considered by the Board. In order to dispel any doubts that may arise in the Railways, it is reiterated that the rates of allowances listed in the enclosed Annexure shall increase by 25% with Dearness Allowance now having gone up by 50% w.e.f. 01-01-2011.
3. The terms and conditions for grant of these allowances will remain the same.
4. Hindi version is enclosed.
5. Kindly acknowledge receipt.

sd/-
(Sonali Chaturvedi)
Dy. Dir.Finance(Estt.)II,
Railway Board.

DA : as above

ANNEXURE

LIST OF THE VARIOUS ALLOWANCES THAT STAND REVISED W.E.F. 01.01.2011 ON ACCOUNT OF ENHANCEMENT IN THE RATE OF DA TO 5l%.

S.No.	Name of the Allowance	Authority number and date
1.	Daily Allowance	F(E)I/2008/AL-28/14 dated 01.12.2008 (Para 3 of the Annexure to the letter)
2.	Mileage for road journey by taxi/own car/auto-rickshaw/own scooter/bicycle etc.	F(E)I/2008/AL-28/14 dated 01.12.2008 (Para 2 D (b) and (c) of the Annexure to the letter)
3.	Road Mileage Allowance and rates for transportation of House-hold effects on transfer.	F(E)I/2008/AL-28/15 dated 01.12.2008 (Para (A) 3 & (4) and para C of the Annexure to the letter)
4.	Fixed Conveyance Allowance	F(E)I/2008/AL-7/3 dated 03.10.2008
5.	Cycle Maintenance Allowance	F(E)I/2008/AL-7/2 dated 18.09.2008
6.	Washing Allowance	F(E)I/2008/AL-29/1 dated 30.09.2008
7.	Special Compensatory (Scheduled/Tribal Area) Allowance	F(E)I/2008/AL-4/7 dated 18.09.2008
8.	Special Compensatory (Hill Area) Allowance	F(E)I/2008/AL-4/4 dated 16.09.2008
9.	Special Compensatory (Bad Climate) Allowance	F(E)I/2008/AL-4/5 dated 16.09.2008
10.	Special Compensatory (Remote Locality) Allowance	F(E)I/2008/AL-4/6 dated 22.09.2008

Source: http://www.scresangh.org
[http://www.scresangh.org/ScreAdmin/downloaddoc/File(1).PDF]

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News at Head Quarters by Kayveeyes, General Secretary

On 06.07.2011, the General Secretary and Com. Balwinder Singh, Financial Secretary, met the officers at the Directorate as follow up action after strike settlement. DDG (Establishment) assured to release the Sorting Postman orders positively within two days. In respect of other items, he informed that files are being moved positively from his branch.

Director (SPN) assured that the orders on officiating pay which includes old cases also and other two or three items will be released within couple of days. Orders on recommending and relieving leave up to 3 days by HSG I postmasters will be considered shortly.

The following issues are also discussed with him.

(i) Irregular issue of RT guidelines in U. P. Circles stating that the officials retiring within six months should not be posted as SPMs – Directorate is issuing orders set asiding the local guidelines.

Irregularities in the LSG gradation list of U. P. & Odisha Circles – Report will be called for from the respective circles Proper guidelines will also the communicated.

Irregularities in the results of FTP and extending favouritism case of Jharkhand circle – It will be processed to set aside the irregularities.

Separate cadre and promotions for Account lines – will be pursued.

Further we discussed the following with ADG (PCC)

(i) Immediate communication of orders on treasury allowance.

Revision of pay to Hindi translators from 01.01.2006 – Case of H. P. Circle.

Revision of Grade Pay on MACP to Pharmalists – Case of Vijayawada.

He assured to process the files immediately

Today (07.07.2011) we met Director (Establishment) and discussed the items related to him. There is a positive move and it was assured to take follow up action.

Director (SR) informed that file has been submitted for approval to the Secretary for the reformation of cadre review committee and expected to be released shortly. Similarly committee for review of Speed Post Hub and MNOP will be finalized next week. He assured to release the instructions in respect of non bringing of staff on Sundays and holidays within couple of days. He further informed that as per the instructions of Secretary, Department of Posts, review on all Strike Charter items will be made with her every Friday evening and the Secretary& Director (SR) will monitor personally on all the agreed items for its implementation. This reflected in the official minutes communicated on 06.07.2011 also.

- Kayveeyes, General Secretary

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Minutes of the Strike Charter - VERY IMPORTANT ORDER ON CONTRIBUTORY NEGLIGENCE

The minutes and the covering letter of the department is furnished in the following link. It is stated in the last para interalia:

“It is requested to take necessary follow up action urgently under intimation to SR Section. The items will be reviewed by Secretary (P) every Friday at 1600 hours.”

Please download the minutes from the following link

ØMinutes: No. 08/09-2011-SR Dated 06.07.2011

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Expected DA from July 2011

We feel features, expectations and calculations are on the forefront for most of the central government employees regarding the additional Dearness Allowance from July, 2011 to be announced soon.

Thee will be no change in the 7% DA unless a huge change takes place in the month of June AICPIN (i.e.if the AICPIN falls below 180 points or increase above 195, a change of DA can take place, but chances are very remote.) AICPIN now stands at 187.
Surprisingly, some employees are eager to know if the DA crosses 100%, it will merge with the basic pay or not.
The is no such recommendations said in the 6th CPC.The allowances only will be increased by another 25%, every time the DA crosses 50%.
As of now, the important increase in the allowance is Children Education Allowance and Hostel Subsidy. It was increased from Rs.12000 to Rs.15000 from 1.1.2011. This will be increase upto Rs.18750 after the Da crosses 100% and some other allowances also will be enhanced by 25% from the existing rates.
Assumption are that the DA will touch 100% in the next three years. Before the 7th CPC, which will be from 2016, the DA surely crosses 100%.
The DA was merged with the basic pay as happened in the year 2004, the 5th CPC had recommended that DA should be converted into Dearness pay each time the CPI increase by 50% over the base index used by the Pay Commission.

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For your information :-
Have a look the order published from Finance Ministry on 1st March, 2004 regarding the Merger of 50% of DA and DR with basic pay / pension to Central government employees / pensioners w.e.f.01.04.2004.

F.No. 105/1/2004-IC
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, dated the 1st March, 2004

OFFICE MEMORANDUM

Subject: Merger of 50% of Dearness Allowance/Dearness Relief with basic pay/pension to Central Government employees/pensioners w.e.f. 01/04/2004.
The Fifth CPC in para 105.11 of their report had recommended that DA should be converted into Dearness Pay each time the CPI increase by 50% over the base index used by the Pay Commission.
2. This recommendation of Fifth CPC has been considered and the President is pleased to decide that, with effect from 01/04/2004, DA equal to 50% of the existing basic pay shall be merged with the basic pay and shown distinctly as Dearness Pay (DP) which would be counted for purposes like payment of allowances, transfer grant, retirement benefits, contribution to GPF, Licence fee, monthly contribution to CGHS, various advances, etc. The entitlements of LTC, TA/DA while on tour and transfer and government accommodation shall, however , continue to be governed on the basis of the basic pay alone without taking into account Dearness Pay. In case of existing pensioners, Dearness Relief equal to 50% of the present pension will, w.e.f. 01/04/2004, be merged with pension and shown distinctly as Dearness Pension. Dearness Allowance/Dearness Relief converted into Dearness Pay/Dearness Pension respectively would be deducted from the existing rate of Dearness Allowance/Dearness Relief.
3. To ensure that pensioners retiring between 01.04.2004 to 31.01.2005 do not face any loss in fixation of pension, as a special dispensation in their case, DA equal to 50% of the basic pay would be treated as basic pay for purposes of computation of pension in respect of basic pay received by them prior to 01.04.2004. Consequently, element of dearness pension will exist only for pensioners retired/retiring from Government of India up to 31.03.2004.
4. Insofar as the persons serving in the Indian Audit & Accounts Department are concerned, these orders issue after consultation with the Comptroller & Auditor General of India.

(SUSHMA NATH)
Joint Secretary to Government of India

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Post Office Savings Accounts to be taxed from current fiscal

The government has decided to levy tax on the interest obtained on Post Office savings schemes from the current financial year.

The Central Board of Direct Taxes ( CBDT )) has brought out a notification in this regard recently, which stipulates that any interest earned beyond Rs 3,500 (in case of individual accounts) and Rs 7,000 (in case of joint accounts) will be taxable from the running fiscal.

The CBDT-- which is the administrative authority of the Income Tax Department-- has issued the notification to all the tax collection ranges across the country for implementation.

Taxpayers will have to reflect this investment on their income tax returns.

"Taxpayers who now invest in the post office saving accounts schemes will now have to show the interest earned on this scheme while filing their income tax returns. Interest upto Rs 3,500, in case of single accounts and and Rs 7,000 in case of joint accounts, is exempted," a senior I-T official said.

The Assessing Officer (AO) will compute the tax on the interest earned, beyond the exemption limit, accordingly, he said.

The current interest rates for Post Office savings deposits is 3.5 per cent per annum.

The minimum investment limit in this scheme is Rs 50 while the maximum limit is Rs one lakh for an individual account and Rs 2 lakh in case of a joint account.

Source: The Economic Times

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Introduction of Core Banking & Wiping out of minus balances

The CHQ has presented a detailed note to Secretary on this issue today vide letter No. P/4-5/Core Banking Dt. – 07.07.2011 about the cause, effect, reality and solution on this serious problem.

Let us be optimistic & have belief that Department will look in to it.

ØView CHQ letter No. P/4-5/Core Banking Dt. – 07.07.2011

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Flash News - MINUTES ON STRIKE CHARTERS

The minutes of the meetings on strike charter of demands held on 27.06.2011, 29.06.2011, 30.06.2011 and 01.07.2011 is furnished in the following link.

Please download and communicate to all members.

Click Here to View The Minutes of the Meeting

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05.07.2011 Indefinite Strike deferred - ಮುಂದೂಡಲ್ಪಟ್ಟ 05.07.2011 ರ ಸ್ಟ್ರೈಕ್

Click here for Gist ofDiscussion  ಚರ್ಚೆಯ ಸಾರಕ್ಕಾಗಿ ಇಲ್ಲಿ ಕ್ಲಿಕ್ ಮಾಡಿ

Click here for orders on Demands ಬೇಡಿಕೆಗೆ ಆದೇಶಗಳನ್ನು ಇಲ್ಲಿ ಕ್ಲಿಕ್ ಮಾಡಿ 

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The Central JCA decided unanimously to intensify the strike preparations and ensure 100% participation of the employees in the indefinite strike

POSTAL JOINT COUNCIL OF ACTION

NATIONAL FEDERATION OF POSTAL EMPLOYEES

FEDERATION OF NATIONAL POSTAL ORGANISATIONS

ALL INDIA POSTAL EXTRA DEPARTMENTAL EMPLOYEES

NATIONAL UNION OF GRAMIN DAK SEVAKS

NEW DELHI – 110001

NO SETTLEMENT

Today (30.06.2011) Secretary, Department of Posts, held another round of discussion with Central JCA Leaders. The Secretary level discussion was restricted to the Mail Network Optimization Project (MNOP) and lasted for one hour only. No settlement could be reached on the first item of the Charter of demands i.e; implemental of Speed Post hubs, 1^st Class Mails hubs and delivery hubs. The staff side demanded the Secretary, Department of Posts, to have full fledged discussion on all items of the charter of demands including the first item.

Yesterday (29.06.2011) there was a discussion with Member (Operations) on the same subject. No consensus could be reached in that meeting also. The Central JCA decided unanimously to intensify the strike preparations and ensure 100% participation of the employees in the indefinite strike. The entire Postal and RMS offices shall remain closed from 5^th July 2011.

The Central JCA call further calls upon on all Circle/Divisional/Branch Secretaries to organize protest demonstration in front of all offices on all days from 1^stJuly 2011.

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Attention of all Divisional/Branch Secretaries please take a copy of the following and hand it over to all the public personalities, people representatives and Trade Union Centers Seeking their support for the ensuing strike - Please ensure immediate Action

DRAFT LETTER

No. JCA/Postal/2011 Dated: 28.06.2011

To,

___________________

____________________

____________________

Sir,

Sub: - Indefinite Postal Strike from 05^th July-2011.

The Postal Services in India is the biggest in the world, with a tradition of serving the people of this country for the last 150 years. There are about 1,55,000 Post Offices , 392 Railway Mail Service Sorting Offices. Collection, Processing, Conveyance and delivery of Postal articles including Speed Post , Registered Post, Parcels, Periodicals, Ordinary letters etc. is the main function of the Postal Department. In addition to this the INDIA POST is running the largest Bank called Post offices Savings Bank and also Postal Life Insurance including Rural Postal Life Insurance, as the agency functions of the Finance Ministry, Govt. of India. There are about 5,50,000 employees working in the Postal Department out of which 3,00000 are Gramin Dak Sevaks mostly in the rural Post Offices.

The Postal Joint Council of Action comprising National Federation of Postal Employees (NFPE) , Federation of National Postal Organizations (FNPO), All India Postal Extra Departmental Employees Union (AIPEDEU) and National Union of Gramin Dak Sevaks(NUGDS)' representing 95% of the employees, has decided to go on Indefinite All India Strike from 5^th July 2011. The Bhartiya Postal Employees Federation (BPEF) affiliated to BMS has also given separate notice for indefinite strike from 6^th July, 2011. The memorandum regarding the decision for indefinite strike was given to the Secretary, Department of Posts, on 20^th April, 2011 itself and the formal Strike Notice was served on 14.06.2011.Three rounds of discussions with Secretary, Department of Posts, took place on 06.06.2011, 07.06.2011 and 27.06.2011, but failed due to the adamant position taken by the Postal authorities.

The Postal Board has appointed the Chicago-based multi-national Consultancy called Mckinsey for optimizing the mail network of INDIA POST. The Department has now started implementing the Mail Network Optimization Project (MNOP) recommended by the Mckinsey. As a first step speed Post hubs are introduced. As per this scheme the existing 315 National Speed Post Centres (NSPC) has been reduced to 89 speed post hubs. Speed post articles booked for delivery in the same district or nearby districts are unnecessarily

Dispatched to hubs situated hundreds of miles away for processing. From there articles are again back-routed to the delivery post offices. This has resulted in heavy delay in transmission and delivery of speed post articles. Articles which are delivered on the next day earlier are now delayed for 2 to 5 days. Time bound and speedy delivery could not be ensured and this has resulted in erosion of the customer faith in the Postal services which in turn has resulted downfall in the number of speed post articles booked and also in the revenue realized through speed post.

In-spite of the failure of the Speed Post hub experiment, the department is not ready to revert back to the old system. Instead the Postal Board now proposes to introduce hub system for first class mails including registered articles and also for delivery. The existing 366 mail sorting offices are to be closed and 89 first class mail hubs are to be introduced, just like speed post articles first class mails including registered articles of 5 or 6 revenue districts are to be pooled in hubs situated hundreds of miles away and from there they are processed and back-routed for delivery. Similarly the delivery of letters in urban areas at present done from town sub post offices are to be withdrawn and it will be concentrated in delivery hubs. The department also issued instruction to all Chief Postmaster Generals for closure and merger of 9797 urban post offices in the name of optimization. The introduction of first class mail hubs, delivery hubs and closure of offices will further aggravate the delay in transmission and delivery of postal articles and curtailment of postal facilities to the public. Naturally public will loos their faith in the postal services and will be compelled to depend upon courier services.

The JCA has demanded the Postal Board to roll back the speed post hubs and also to reject the proposal to introduce first class mail hubs and delivery hubs and stop closure of offices. But the Postal Board has taken an adamant stand and is unilaterally going ahead with the implementation of Mckinsey recommendations.

The JCA has also demanded the Postal Board to concede the legitimate sectional demands of the Gramin Dak Sevaks, Casual Labourers and other cadres of the Postal department such as Postal Assistants, Sorting Assistants, Postmen, Mail guard, Multi-tasking Staff, System Administrators, PO & RMS Accountants, Postal Accounts Employees, Administrative Staff, SBCO Staff, MMS and Civil Wing employees. The 25 point Charter of demands submitted to the Secretary, Department of Posts, is enclosed herewith

As employees of all the Federations and Unions irrespective of their union affiliations are participating in the strike, the entire postal services will be paralyzed from 5^thJuly, 2011.

We earnestly solicit your support for the justified demands of the Postal employees and intervention at Government level for settlement of the demands raised in the Charter of Demands.

Yours Sincerely

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