7th Pay Commission: Latest updates and how to calculate your bonus
Following the implementation of the 7th Pay Commission, the government has announced 5 per cent DA and also a list on travel entitlements for the Central Government employees.
On Wednesday the government also announced the productivity linked bonus for the Railway employees.
The government clarified that the travel entitlements of Government servants for the purpose of LTC shall be the same as TA entitlements as notified vide Ministry of Finance's O.M. dated 13.07.2017, except the air travel entitlement for Level 6 to Level 8 of the Pay Matrix, which is allowed in respect of TA only and not for LTC.
i. No daily allowance shall be admissible for travel on LTC.
ii. Any incidental expenses and the expenditure incurred on local journeys shall not be admissible.
iii. Reimbursement for the purpose of LTC shall be admissible in respect of journeys performed in vehicles operated by the Government or any Corporation in the public sector run by the Central or State Government or a local body.
iv. In case of journey between the places not connected by any public/Government means of transport, the Government servant shall be allowed reimbursement as per his entitlement for journey on transfer for a maximum limit of 100 Kms covered by the private/personal transport based on a self-certification from the Government servant. Beyond this, the expenditure shall be borne by the Government servant.
v. Travel by Premium trains/Premium Tatkal trains/Suvidha trains is now allowed on LTC. Further, reimbursement of tatkal charges or premium tatkal charges shall also be admissible for the purpose of LTC.
vi. Flexi fare (dynamic fare) applicable in Rajdhani/Shatabdi/Duronto trains shall be admissible for the journey(s) performed by these trains on LTC.
This dynamic fare component shall not be admissible in cases where a non-entitled Government servant travels by air and claims reimbursement for the entitled class of Rajdhani/Shatabdi/Duronto trains.
Productivity linked bonus
The Union Cabinet chaired by the Prime Minister Narendra Modi gave its approval to pay Productivity Linked Bonus (PLB) equivalent to 78 days wages to eligible non-gazetted railway employees (excluding RPF/RPSF personnel) for the financial year 2016-17.
About 12.30 lakh non-gazetted Railway employees are likely to benefit from the decision. This payment will be made before Dussehra/Puja holidays, bringing a smile to lakhs of families ahead of the festive season. The payment of PLB would serve as an incentive, and result in motivating a large number of Railway employees, particularly those involved in execution and operations of railways, to improve their productivity and ensure safety, speed and service for Railway customers. Indian Railways operates on the principle of maximum public welfare, and in this context, this bonus payment will help in improving accountability and efficiency in railways operations.
The financial implication of payment of 78 days' PLB to railway employees has been estimated to be Rs. 2,245.45 crores. The wage calculation ceiling prescribed for payment of PLB is Rs. 7,000/- p.m. The maximum amount payable per eligible railway employee is Rs. 17,951 for 78 days.
Bonus for regular and GDS employees
The calculation for the purpose of payment of bonus under each category will be done as indicated below:-
REGULAR EMPLOYEES: Productivity Linked Bonus will be calculated on the basis of the following formula:- Average emoluments X Number of days of bonus 30.4 (average no. of days in a month). The terms "emoluments" for regular Departmental employees includes Basic Pay in the Pay Band plus Grade Pay, Dearness Pay, Personal Pay, Special Pay (Allowances) S.B. Allowance, Deputation (Duty) Allowance, Dearness Allowance and Training Allowance to Faculty Members in Training Institutes. In case of drawal of salary exceeding Rs.7000/- (of 6th CPC) (Rupees Seven Thousand only) in any month during the accounting year 2016-17, the emoluments shall be restricted to Rs.7000/- (Rupees Seven Thousand only) per month only.
"Average Emoluments" for a regular employee is arrived at by dividing by twelve, the total salary drawn during the year 2016-17 for the period from 1.4.2016 to 31.06.2017 by restricting each month's salary to Rs. 7000/- per month. However, for the periods of EOL and Dies-Non in a given month. Proportionate deduction is required to be made from the ceiling limit of Rs.7000/-. In case of those employees who were under suspension, or on whom dies-non was imposed or both, during the accounting year, the clarificatory orders issued vide Paras 1 & 3 respectively of this officer order No. 26-8/80-PAP (Pt.I) dated 11.6.1981 and No. 26-4/87-PAP (Pt.II) dated 8.2.1988 will apply. Those employees who have resigned/retired or left services or proceeded on deputation within the Department of Posts or those who have proceeded on deputation outside the Department of Posts after 1.4.2016 will also be entitled to bonus. In case of all such employees, the Productivity Linked Bonus admissible will be as per provisions of Paras 2.1 to 2.3 above.
GRAMIN DAK SEVAKS: In respect of GDS employees who were on duty throughout the year during 2016-17, Average Monthly Time Related Continuity Allowance will be calculated taking into account the Time Related Continuity Allowance (TRCA) plus corresponding Dearness Allowance drawn by them for the period from 1.4.2016 to 31.3.2017 divided by 12. However, where the Time Related Continuity Allowance exceeds Rs. 7000/- in any month during this period, the allowance will be restricted to Rs 7000/- per month. Ex-gratia payment of bonus may be calculated by applying the bonus formula as mentioned below Average TRCA X Number of days of bonus / 30.4 (average no. of days in a month). The allowance drawn by a substitute will not be counted towards bonus calculation for either the Substitutes or the incumbent GDSs.
In respect of those GDS who were appointed in short terms vacancies in Postmen / Group ‘D' Cadre, the clarificatory orders issued vide Directorate letter No. 26-6/89-PAP dated 6.2.1990 and No. 26-7/90-PAP dated 4.7.1991 will apply.3.3 If a GDS has been on duty for a part of the year by way of a fresh appointment, or for having been put off duty, or for having left service, he will be paid proportionate ex-gratia bonus calculated by applying the procedure prescribed in Para 3.1 above. Those Gramin Dak Sevaks who have resigned discharged or left service after 01.04.2017 will also be entitled to proportionate ex-gratia Bonus. In case of all such Gramin Dak Sevaks, the Ex-gratia Bonus admissible will be as per provisions of Para 3.1 above.
3.5 In case of those Gramin Dak Sevaks who were under put off, or on whom dies-non was imposed, or both, during the accounting year, the clarificatory orders issued vide Paras 1 & 3 respectively of this office order No 26-08/80-PAP (Pt-I) dated 11.6.1981 and No. 26-04/87-PAP(P.II) dated 8.2.1988 will apply.
Full Time Casual Labourers (including Temporary Status Casual Labourers who have worked for 8 hours a day, for at least 240 days in a year for three consecutive years or more (206 days in each year for three years or more in case of offices observing 5 days a week) as on 31.03.2017) will be paid ad-hoc bonus on notional monthly wages of Rs. 1200/- (Rupees Twelve hundred only). The maximum ad-hoc bonus will be calculated as below:
(Notional montly wages of Rs.1200) X (Number of days of bonus) /30.4 (average no. of days in a month). Accordingly, the rate of bonus per day will be worked out as indicated below:
Maximum ad-hoc bonus for the year /365
The above rate of bonus per day may be applied to the number of days for which the services of such casual labourers had been utilized during the period from 1.4.2017. In cases where the actual wages in any month fall below Rsw. 1200/- during the period 1.4.2016 to 31.3.2017, the actual montly wages drawn should be taken into account to arrive at the actual ad-hoc bonus due in such cases.
The amount of Productivity Linked Bonus/ex-gratia payment/Ad-hoc bonus payable under this order will be rounded off to the nearest rupee. The payment of productivity Linked Bonus as well as the ex-gratia payment and ad-hoc payment will be chargeable to the Head "Salaries" under the relevant Sub-Head of account to which pay and allowances of the staff are debited. The payment will be met from the sanctioned grant for the year 2017-18. After payment, the total expenditure incurred and the number of employees paid may be ascertained from all the units by Circles and consolidated figures be intimated to the Budget Section of the Department of Posts. The Budget Section will furnish consolidated information to PAP Section about the toal amount of bonus paid and the total number employees (Category-wise) to whom it was disbursed for the Department as a whole.
7th Pay Commission DA
After the 7th Pay Commission recommendations were implemented, the Cabinet said that the DA to CG employees shall be enhanced from the existing rate of 4 per cent to 5 per cent. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).
The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant Head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India.