New Pension Calculator | Arrears Details Calculator

Kindly visit the following link to calculate your new pension as per VI Pay Commission:

PENSION CALCULATOR

 for pre-01-01-2006 pensioners

Read the following info for instructions :

“Revise Your Pension and know Arrears under VI CPC “ 

Ø    Know your inputs:

o       Current Pay Scale: Refers to the Pay Scale of the post held on the date of retirement / death, under the V CPC. If you are not aware of the pay scale, it can be ignored. This pay scale is required to arrive at the minimum pension admissible based on the 50% of the minimum of the Pay Band under the VI CPC. This input is optional.

o      Current Pension (Gross): Denotes the pension authorized on the PPO, inclusive of the commuted portion. Dearness pension should not be added if the retirement is prior to 01/04/2004. For retirements after 01/04/2004, the DP having been added while computing the pension, the gross pension shall include the DP. This input is compulsory.

o       Commuted Value:  Refers to the portion of pension commuted by you. Please do not validate this input if the commuted portion is already restored as on 01/01/2006. If it is restored after 01/01/2006, this input is required. This input is optional.

o       Date of Restoration: This input is required if the restoration of commuted portion, (ie if 15 years has passed after the date of commutation) falls between the arrear period 01/01/2006 to 31/08/2008. This input is optional.

o       Date of Birth of Pensioner : This input is required to determine the age of the pensioner, based on which additional pension is to be allowed. This  input is compulsory.

o       Date of Retirement / Death: This input determines the fitment to be adopted viz if the date of retirement / death is on or after 01/04/2004, it assumes that the current pension includes the DP element otherwise, the current pension is exclusive of DP and accordingly the fitment is done. This input is compulsory.

o       General: The Dearness relief rates are applied on the gross pension both on the ‘due’ side and the ‘drawn’ side, as applicable from time to time. The calculation is only indicative and it is observed during evaluation that there is a minor error in rounding off to an extent of Re.1/-, and the additional pension is computed from the first of the month following the date of birth on which the age of 80/85/90 is attained – the errors are under debugging. Inconvenience is regretted. 

Now click on Revise Your Pension and know Arrears under VI CPC to go in.

 Possibly Related Posts – 

Six Pay Commission | Table of Content

Other Interesting Posts

Its the Uniform Arrears Calculator New Pension Rules Revised Allowances Salary Calculator Pension Calculator The War Of Wages Gazette Notification Teachers on War – Path Implication Of SPC Report Clarification By Govt. on ACP The Service Chief’s Protests Disbanding the Army of Clerks DRDO facing attrition Problems Performance Based Incentives UGCs’ Pay Review Committee Report Forces Unwilling to Implement 6th CPC UGC Pay Panel recommends 70 pc Hike Final Pay Bands – Enhanced Grade Pays Circulars Related to 6th Pay Commission Army guns For babu — A Literal Letdown Teachers’ body not happy with the pay hike Six Pay Commission Report – Summary of Information (September 2008)

India on Moon U.S. Elections Cartoon Global Economic Crisis Raj Thackeray Initiative AIRTEL launches Digital TV Google Chrome Comic Download 1000 Awesome Things About India Confessions of a Banned Book Lover New 7 Wonders of Nature Campaign 6th CPC – Creamy Layer gets Creamier Fighting Terrorism – What we CITIZENS can do. Technical Posts Windows 7 Preview Google’s latest Products Is it time to buy a Macbook?  FREE SMS updates for you!!! PDF to Word – Easy and Online    A look into the past : Google You Tube to Offer TV Shows Google Android Phone’s Premier Google’s G1 Android phone – 1.5 Million Pre-Orders Google Adsense – Tips and Tricks for better utilisation All About Google (All posts tagged with Google in my Blogs)

Subscribe to Tarun Reflex and information on Pay Commission by Email Subscribe to Tarun Reflex | Personal,Political and Technical (The Citizen Reporter) & latest update on Six Pay Commission by Email

Six Pay Commission | Performance-based incentive scheme now on a voluntary basis

The department of science and technology (DST) that took the lead in formulating a performance-related incentive scheme for research organizations it funds, now plans to implement the scheme on a voluntary basis because some beneficiary organizations are still not convinced of the efficacy of the scheme.The dept of science and technology proposes to scrap annual confidential reports

The Sixth Pay Commission had carried out a study through the Indian Institute of Management, Ahmedabad, on a performance-based incentive system, to ostensibly improve the performance outputs of Central government employees.

The study, according to the official website of the pay commission, was aimed at working out a model whereby a base salary is attached to each post based on skills and responsibility and simultaneously, a second component would be payable over and above the salary on the basis of the productivity and performance of employees, either individually or as a group.

The study recommended an annual bonus of up to 20% to employees whose achievements exceed certain targets, which has been accepted by the cabinet.The government has also given in-principle approval to contractual postings in government departments of employees hired from private sector.As reported previously in Mint, a finance ministry official who didn’t wish to be identified had recently said that DST has already moved to put in place an incentive-based system.“Once DST implements it, we expect there will be pressure on other government departments to follow suit,” this official had added.

“Some people aren’t convinced yet and so we will be implementing this on a voluntary basis,” said a senior official in the ministry of science and technology, who didn’t want to be identified.DST is the largest funder, excluding the atomic energy and space ministries, of basic research programmes in the country. It is the most important source of funds for nearly 17 autonomous organizations that are working in a range of fields from astronomy to biology.

“But I’m confident that once a few adopt, the rest will come around,” the same official added.

One major change the scheme proposes is to do away with the current annual confidential reports and bring in annual performance management reports.

Here a 12-point criteria matrix would be drawn up, that evaluate criteria such as the number of articles published in peer-reviewed journals, impact factors of the journals, (These measures refer to how often a particular research paper is cited by peers in the field, and the frequency of well-cited research papers appearing in a particular journal) and the quality and impact of new schemes initiated (by scientists on the managerial side).

“One of the measures suggested for annual review is impact factor of a journal, and citation indexes. However, it would be unfair to use the same scale to compare output in veterinary sciences to (that in) nanotechnology, as nanotech is a much hotter field than vet sciences. A good paper on vet sciences will never be highly cited. That’s how the system works,” said a scientist, who didn’t want to be identified given the sensitivity of the issue, at the Wadia Institute of Himalayan Geology, one of the autonomous research institutes funded by the DST.

Another proposal in the scheme that hasn’t gone down well is to have independent experts from other institutions rate scientists, which, the formulators of the scheme say,will help remove bias and infuse transparency in the rating system, said a DST official familiar with discussions on the scheme.

Moreover, the scheme is expected to be budget-neutral, meaning no extra funds will be provided. “Finance committees are extremely tight anyway. So obviously the extra money will come from cuts in laboratory tests, and stricter controls in procuring equipment,” the scientist from the Wadia institute added.

The department currently plans to allot Rs60-70 crore in the first phase, beginning this year.

However, many scientists seem to be receptive of performance incentives, as the only way they can hope for substantial increments is to get promoted.

In government labs, scientist grades vary from A to G, the latter being the highest, and on an average it takes about 20 years to go from A to G.

“I think it would be welcome. Even at F and G, pay hikes are not substantial. There are more perks like allowances for subscribing to journals, and increased funds for attending international conferences,” said Madhavan Rajeevan, a scientist at the Indian Space Research Organisation and formerly with the India Meteorological Department, which follows a pay structure similar to DST.

————————————————

Possibly related Posts :

• Its the Uniform 
• Arrears Calculator
  
• New Pension Rules 
• Revised Allowances 
• Salary Calculator 
• Pension Calculator 
• Gazette Notification 
• Implication Of SPC Report 
• Clarification By Govt. on ACP 
• Disbanding the Army of Clerks 
• Forces Unwilling to Implement 6th CPC 
• UGC Pay Panel recommends 70 pc Hike 
• Final Pay Bands – Enhanced Grade Pays 
• Circulars Related to 6th Pay Commission 
• Six Pay Commission Report – Summary of Information 

Other Interesting Posts :

• U.S. Elections Cartoon 
• Google Chrome Comic Download 
• 1000 Awesome Things About India 
• Confessions of a Banned Book Lover 
• New 7 Wonders of Nature Campaign 
• Fighting Terrorism – What we CITIZENS can do. 

Six Pay Commission | Clarification by Govt on ACP/Promotion after 1.1.2006

In light of (F.No: 1/1/2008-IC dated 13.9.08) clarification, the common option under Rule 5 of CCS Revised Pay Rules 2008 for 6CPC Pay fixation as well as pay fixation for ACP/Promotion is not warranted now.

Those who get ACP/Promotion will have the option of getting their 6CPC pay fixed on 1.1.2006 or on the date of their pre-revised increment based on the option exercised by them under Rule 6 of CCS Revised Pay Rules 2008. Afterwards, for the purpose of fixing the Pay on account of ACP/Promotion they can exercise one more option under FR 22 (I) (a) (1) to get his pay fixed in the higher post either from the date of his promotion, or from the date of his next increment, viz., July of the year.

Now, let’s see the method to be adopted in these two options

Option 1 : Pay Fixation from the date of next increment:

On the date of promotion pay in the pay band shall continue unchanged, but the grade pay of the higher post will be granted. Further re-fixation will be done on the date of his next increment ie. 1st July. On that day he will be granted two increments; one annual increment and the second on account of promotion.

Option 2: Pay fixation on the date of promotion/ACP

The increment on account of promotion will be granted on the day of promotion, but the employee has to wait for another 12 months to get his annul increment. In other words, he shall get his first annual increment in the higher grade on the next 1st July of he was promoted between 2nd July and 1st January. If he was promoted between 2nd January and 30th June of the particular year, he shall get his increment on 1st July of the next year.

Consequent upon, this clarification we have now revised the Calculator posted in GConnect for 6CPC Pay fixation opted on 1.1.2006 in the case of ACP/Promotion after 1.1.2006. This application will cater to the two options available in the event of ACP/Promotion, while the keeping 6CPC pay fixation date constant viz., on 1,1,2006.

Comparison of Options:

Those who get their promotion between 2nd Jan and 30th June will get the additional benefit of one annual increment in the ACP/Promotion year itself, if they opt to defer their pay fixation for promotion to next grade to 1st July of the year at the loss of fixation benefit from promotion month to July of that year. This onetime loss will be very minimal while comparing long term benefit we get out of addition of one more increment in the year. Anyway, this onetime loss has also been minimized by the Govt to the extent possible as the grade pay gets revised on the date of ACP/Promotion though we prefer to defer it to July.

On the contrary, for those who get the their promotion between 2nd July and 1st January, deferring their pay fixation to next July will not fetch any additional benefit as they will earn their annual increment prior to their promotion in July during that year. So they can opt for fixing the pay on their regular date of promotion which would fetch them an additional increment in the same year.

We feel that this comparison will be applicable only to straight cases and may tend to vary in special cases.

Six Pay Commission Gains | Cut taxes to benefit staff

Government employees are upbeat over the Sixth Pay Commission report, little realizing that more than them it is the Government which is the main beneficiary. Of the Rs 16,000-crore benefit that the panel is supposed to give over Rs 5,300 crore would go back to the Government by way of income-tax at 33 per cent alone. In fact, some employees would now be subjected to an additional tax as their salaries would touch the Rs 10-lakh per annum mark.

In its latest report, the Reserve Bank of India has come up with the desired suggestion of reducing the income-tax rate and raising exemption limits, for increasing the disposable income and ease inflationary pressure. The high inflation rate, around 13 per cent on wholesale price index (more on the basis of consumer price index) has already eroded substantial part of the pay panel benefit. The taxes would eat up the rest.

It is well-known that wage revision is undertaken primarily to neutralise the effect of price rise. One, it is dearness allowance component which takes care of it marginally. Two, it keeps the market going at an even pace. For with higher wages one is expected to increase purchases and help other sectors of the market.

It is no secret that the market is highly depressed owing to high inflationary pressure. Industrial growth too has slid. “There are also some downside risks to the industrial growth momentum during 2008-09″, admits the RBI. Growth in other sectors too has fallen including infrastructure, power and the core sector. Thus raising, what RBI says are “apprehensions regarding sustainability of industrial and manufacturing growth”.

Clearly, the central bank is concerned that inflation has eroded the disposable income of the middle-class, supposedly the “engine” for overall growth. It has, in no uncertain terms, expressed concern that the Government has not taken any step to rectify this and is circumspect on the benefit to the market of the so-called ‘higher wages‘ of Central Government employees. Moreover, the RBI is wary that as the salaried class is in a tight spot, it may default on repayment of EMIs and pose a risk to the banking system.

In the face of the above, the RBI has thus vociferously suggested “adjustment” – the bank’s euphemism for reduction – in the income tax and excise duty for increasing the disposable income of the middle-class. “It may have a possible impact on consumption demand for industrial goods,” is the RBI’s guess.

In all fairness, higher salaries were expected to surge other economic activities. But with the government policy eating into the kitty itself, that opportunity is lost. Therefore, it is time the Government has a re-look at its tax policy. The taxes, be it corporate or personal income-tax, remain at a very high level. Over the years, big time industrialists–Rahul Bajaj, Arun Bharat Ram or Sanjiv Goenka, Nusli Wadia, or Ajay Piramal–have expressed concern over the high tax regime. There is unanimity that high taxes only lead to avoidance and evasion. And yet our Government has unfortunately not tied up the taxes with its liberalisation policy.

Moreover, often taxes are unproductive and unimaginative. The answer lies in lowering the taxes and abolishing the personal income tax, which unfortunately has come to be known as the “impoverishing tax“. The Kelkar committee had estimated that 48 per cent of the direct tax collected goes into tax administration! It is certainly one of the most expensive systems of realisation of resources. Any corporate would simply go bust at this kind of a cost.

Let’s study the scenario. Today, there are more I-T commissioners and naturally the administration costs have gone up. In addition, the income-tax department has started spending on decorative and unrelated activities. As such, the Government not only needs to review the size of the department but also prune it. This apart, extra staff in a department means not so clean operations, as some instances have shown.

Many a times the large official force ends up causing harassment to the public simply because it is under pressure to justify its existence. This again adds up to the cost. Then there are the subsequent litigation and appeal processes, which too are a burden on the economy, other than causing loss to productive man hours. The cumbersome I-T rules only make the process more difficult. A Mahabharata of rules are eventually added every yea and each has several interpretations.

In the past, the Government has had the experience of overall higher tax accrual following tax rates being moderated from 97 per cent to 33 per cent. This meant an erosion of over one-third income in direct tax. And, there are umpteen cases of indirect taxes, which rob an average Indian of almost another 40 per cent of his/her income.

Thus, it is crystal clear: tax rates need to be cut. Finance Minister P Chidambaram must examine the pros and cons of a high tax regime carefully, so that all the money that is being generated is gainfully utilized and not burnt up. The Government should, in fact bring it down to the level of five per cent for an income up to Rs 5 lakh a year and beyond that to a maximum level of 10 per cent. Even the corporate incomes should not be taxed at more than 15 per cent.

Let’s face the fact that if the taxes were low, people would voluntarily prefer to pay rather than avoid these. At the same time, the Government’s coffers would get bulkier as more and more people would be integrated with the system. As of now most taxpayers are out of it and the taxmen are well aware.

What is being suggested is no revolutionary step. It only makes the tax system more imaginative, less exploitative and interwoven with market realities. At the end, an affordable tax regime would reduce the cost of tax policing, boost the market and bury inflation.

HP India to cut 1,000 jobs?

Hewlett-Packard’s decision to eliminate nearly 25,000 of its 320,000 jobs worldwide is expected to have a significant impact on its Indian operations too.

Analysts in India believe that in the short term, the company could see off some 1,000 people, and that in a three year period this could go up to 6,000 of its nearly 60,000 people in the country.

The computer and printer maker’s job cuts come as part of its plan to integrate Electronic Data Systems (EDS), the computer services giant that HP acquired for $13.9 billion in August as part of an effort to match IBM in the services space.

Following the acquisition, a workforce reduction was seen as inevitable, but the figure HP has announced is way beyond anybody’s expectations.

Kapil Dev Singh, managing director of research firm IDC India, said HP’s announcement mostly stems from the global economic scenario. “It’s an instant fall out of what’s happening on Wall Street. The IT accounts of banking and financial institutions (BFSI) have been shrinking. So hiring for this space has been put on a slow burner by global companies,” he said.

Mohan Lal Menon, managing director of strategy advisory firm Sentient, said a lot of overlapping was expected with the integration of HP and EDS Mphasis (in India, EDS had previously acquired Mphasis).

“Most of it would have been in the areas of HR, administration, sales and marketing. But the trigger for HP is definitely the precarious conditions in the BFSI space across the US, Europe and Asia. HP seems to be ahead of the curve, towards planning for the economic downturn,” he said.

Till the time of going to print, HP had not responded to questions sent by TOI on the impact HP’s workforce reduction move would have on India.

However, a senior official at Mphasis said no immediate impact was expected on Mphasis. “We have been hiring junior to top talent. We have been expanding our footprint across the country. So its business as usual,” he said.

Ordinary Employee get 20% hike and president gets 300%

The Government of India has enhanced the emoluments of the President of India, the Vice President and state governors to Rs 1.5 lakh, Rs 1.25 lakh and Rs 1.10 lakh per month respectively. The hike comes close on the heels of Government announcing a bonanza for its employees by implementing the recommendations of the Sixth Pay Commission report under which an ordinary employee gets a hike of 20%. Is this justified? We are not seeing the amount of hike but the percentage. Will this help to improve the morale of ordinary employees. Post your comments here.

Sixth Pay Commission | Group `D` staff may not require to pay tax on Arrears

Group ‘D’ employees of the Central government, including peons and drivers, can heave a sigh of relief as they are likely to get their 40 percent salary arrears in full without any income tax deduction on implementation of Sixth Pay Commission recommendations. 

While the Group ‘D’ government employees will not have to pay tax on arrears, those belonging to higher levels can also claim marginal benefit by filing Form 10E of the Income Tax Returns, said a senior official of the Central Board of Direct Taxes (CBDT). 

Among the Group ‘D’ employees, drivers receive highest salary because of over-time allowance, the tax official said, adding, “even they will fall short of the taxing limit by a whisker.” 

High ranking officials would not get as much benefit as their Group ‘D’ counterparts get as they already are in a larger tax bracket and may also be required to pay a “surcharge” on their salaries, Chartered Accountant Subhash Lakhotia said. 

The government while approving the Pay Commission’s recommendations said 40 percent of the arrears would be paid in the current year, while the remaining 60 percent would be disbursed in the next financial year. The arrears are with effect from January 2006. 

On income tax liability on salary arrears, the official said, government employees would be required to pay taxes only on arrears which they would receive during the current year along with the benefits entitled under Section 89 and Rule 21 AA of the Income-Tax Act. 

Lakhotia said senior officials “will only get a marginal benefit after filing Form 10E as the income-tax exemption limit for current year has increased.”

Six Pay Commission | Govt puts payout of arrears on fast track

To expedite the payment of salary arrears to lakhs of its employees after implementation of the Sixth Pay Commission’s report, the government has waived any “pre-check” of the claims they would be submitting.

This has been done to ensure that arrears are cleared at the earliest when the salary for September is paid to employees on the last working day of the month.

The employees would, however, be required to furnish an undertaking so that the government can later deduct any excess payment made to them due to any miscalculation.

Usually, the drawing and disbursement officer in a government office is supposed to verify the salary and arrear bills of every employee but the one-time exception will save the accounts section the additional burden. It will, however, work out the details of the dues later.

After the new salaries were notified on August 29, the government came out with a detailed “ready reckoner” that took into account each earlier pay scale and the corresponding change in it.

“The calculation of new salary has become easy but some error may occur while calculating the arrears because increments are involved. It is good that the pre-check requirement has been dispensed with,” an officer said.

Although the employees will have to pay income tax on the arrears, most of them are now busy calculating their dues. Only 40% of the arrears are to be paid during the current fiscal and the remaining 60% will be disbursed in 2009-10. The employees have the option to deposit the arrears in their GPF accounts after deduction of tax. For the payment of the hiked salaries, the employees have been asked to submit a statement of fixation of pay after tallying it with the ready reckoner.

The buzz in government offices is also on a possible “anomaly” in the new scales. The pay band system, officers said, is likely to dilute the motivation for promotion because an employee’s salary will, anyway, go on increasing annually.

Under the new rules, there are only four pay bands for all employees and officers with assured annual increments. As a result, a large number of employees, despite their in-cadre seniority, would be placed in the same pay band for a considerable period.

“The financial premium on promotions will certainly get diluted. We need to see what impact the new system has on the motivation levels of employees,” a director dealing with accounts said.

Six Pay Commision |Government to tax entire salary arrears | 100% this year

For 5.5m government staff looking forward to take home the 40% of the accumulated arrears on their increased salary next month, in time for some festive spending on Diwali and Eid, here’s a sad news. The government has decided to levy tax on the entire amount of arrears – even for the 60 % which will be paid next year, in the current fiscal itself. 

For most employees, the decision would virtually wipe out almost the entire amount of 40% arrears to be paid to them this year. Senior bureaucrats will suffer the most as their tax would be topped with a surcharge of 10%, applicable on an income of Rs 10 lakh and above. 

A senior finance ministry official said the surcharge to be paid by officers of the rank of joint secretary and above ranges between Rs 24,600 and Rs 52,500. The impact would be less on the lower grades.

6th Pay Commission will have no impact on India’s Economy

Contrary to widespread misperception that 6th Pay Commission will have adverse impact on India’s economy, a report says that it wouldn’t have any negative impact. The report comes at a time when many economists and analysts both with India and abroad had said that it will be increase deficit and may aggravate inflation.

Central government that is all set to issue notification for the implementation of the pay panel recommendations must have heaved a sigh of relief over the finding of Fitch Ratings India.

The Fitch Ratings India’s finding totally negates the economists who had been ranting that it will be counter productive for the nation and that it will be very difficult for the country to absorb the financial impact of the increased pending on the pay panel implementation.

Around 5.5 million central government employees are going to benefit from the pay panel recommendations. A larger number of state government employees too will benefit from the recommendations if their respective state governments implement the recommendations.

It is estimated that the wage hike would increase the financial implication for the Centre by Rs 17,798 crore annually and the arrears with effect from January 2006 would cost Rs 29,373 crore, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting. The financial implication of Pay Commission on the General Budget would be Rs 15,717 crore and Rs 6414 crore on Railway Budget in 2008-09. The government’s present salary bill is over Rs 70,000 crore and the pension bill is over Rs 30,000 crore.

Dr Devendra K. Pant of  Fitch Ratings India says, “In 1997, the fiscal situation was grimmer for Indian states when increased expenditure on wages and salaries resulted in increased borrowing, engulfing some states in a fiscal crisis and trapping them in a vicious cycle of debt”.

He says that the country was in a far stronger economic condition and that it has the ability to absorb such government largesse. “Now, there is a marked difference in present growth and the states’ fiscal situations. Even with a forecasted slowdown in FY09, economic growth is expected to be 7.7%, whereas economic growth in FY97 was a comparatively meager 4.3%” he says.

Another Fitch official says, “Fitch considers that buoyancy in VAT collection and continued tax buoyancy would help states manage the negative impact of the pay revision on their finances”.