Employee Today

Tuesday, 29 April 2014

Good news - Rates of various allowances, Increased by 25%


Enhancement in the rates of various allowances by 25% as a result of enhancement of Dearness Allowance upto 100% - Effective Date 01.01.2014 - RBE 39/2014

GOOD NEWS - Children Education Allowance Increased

Government of India
Ministry of Personnel, Public Grievances and Pension
Department of Personnel & Training
Block-IV, Old JNU Campus
New Delhi, 28th April, 2014.

OFFICE MEMORANDUM
Subject: Clarification on increase in certain allowances by further 25% as a result of enhancement of Dearness Allowances w.e.f. 1.1.2014 —

The undersigned is directed to refer to para 1(j) of this Department’s O.M. No.12011/03/2008-Estt (Allowance) dated 2.9.2008. This provides that the limits of Children Education Allowance would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%. References are being received from various quarters with regard to the amount of Children Education Allowance admissible consequent upon enhancement of Dearness Allowance payable to Central Government employees @ 100% w.e.f. 1 s` January, 2014 announced vide Ministry of Finance, Department of Expenditure O.M. No.1/1/2014-E-II (B) dated 27th March, 2014.

2. In accordance with the above, the following shall be the revised limits:

a) The annual ceiling lfmit for reimbursement of Children Education Allowance shall be Rs.18,000/- per child. Accordingly, the quarterly claim

could be more than Rs.4500/- in one quarter. The Hostel Subsidy shall be Rs.4500/- per month per child;

b) The rates of Special Allowance for Child Care to women with disabilities stands revised to Rs.1500/- per month; and

c) The annual ceiling for reimbursement of Children Education Allowance for disabled children of Government employees shall be treated as

revised to Rs.36,000/- per annum per child and the rates of Hostel Subsidy for disabled children of Government employees shall be treated as revised to Rs.9000/- per child per month.


3. These revisions are applicable with effect from l g January, 2014

4. These revisions shall be subject to other terms and conditions mentioned in this Department’s O.M. No.12011/03/2008-Estt (Allowance) dated 2.9.2008, O.M. No.12011/04/2008 dated 11.9.2008 and 12011/07(0/2011-Estt.(AL) dated 21.2.2012.

(Mukul Ratra)
Director

Parliamentary panel recommends increasing retirement age to 65



New Delhi: A parliamentary committee has recommended that retirement age should be increased from 60 years to 65 years, citing the increase in ageing population and their productivity.

In its report tabled in Lok Sabha today, the committee also advocated a host of benefits to the geriatric population, including upping their income tax exemption limit and setting up of super-speciality hospitals in all states exclusively for them. 

"The committee would like the Ministry (Social Justice and Empowerment) to seriously consider the various options which would include reviewing the age of retirement, re-employment opportunities for the retired persons... And setting up a Directorate of Employment and Rehabilitation for Senior Citizens," it said. 

It asked the government to look at the continuity of employment up to 65 years of age. 

The Standing Committee headed by Hemanand Biswal noted that the population of senior citizens is expected to rise to 12.4 per cent by 2026 against 7.5 per cent in 2001 and the numbers of those above 60 and 80 years of age would see a whopping increase of 326 per cent and 700 per cent respectively by 2050. 

The senior citizens should get a pension of at least Rs 1,000 per month, it said, adding that the criteria for it may be universalised for all non-income tax payers. It has also reiterated its earlier recommendation that old-age homes be set up in all districts of the country. 

It has urged the Finance Ministry to periodically raise income tax exemption keeping in view the increasing cost of living and prohibitive cost of healthcare for senior citizens. 

The committee also recommended that the government should try to adopt best practices from the Scandinavian countries, which are noted for their welfare facilities for the elderly population. 



PTI

IMF for increasing retirement age to 62 years



ISLAMABAD - The International Monetary Fund (IMF) has urged the federal government to increase superannuation age to 62 years, from 60 years at present, to cut huge expenditures being incurred on pensions of the government employees. According to reports, the IMF has asked the government to introduce reforms primarily to control ballooning expenditures under public wages and to increase productivity of the public sector. In the current fiscal year alone, an estimated Rs450 billion will be spent on salaries of the federal government employees alone.
The amount include over Rs170 billion under the head of pensions.
IMF, which has just completed a review of the Pakistan's economy under its extended fund facility worth over $6 billion, has noted that there is incremental growth under public wage expenditures and to control it retirement age of government employees should be increased to 62 years.

Source - nation.com

Monday, 28 April 2014

Bharat Pensioners Samaj Draft Reply to 7th CPC questionnaire for comments & Suggestions highlighting OROP, FMA, NPS Withdrawal, Merger of DR, Exemption from IT etc.



Ms Meena Agarwal
Secretary  GOI Seventh  Central Pay Commission
Post Box No 4599 Hause Khas
P.O. New Delhi -110016
e.mail: secy-7cpc@nic.in

Madam,

Subject: 7th Questionnaire
Reference: D.O. No 7cpc/15/questionnaire   dated 9th April 2014
‘Bharat Pensioners Samaj’. One of the identified Pensioners Federation by GOI  M/O Personnel,  PG & Pensions-DOPPW and a stake holder. In its capacity as one of the oldest &  largest  Pensioners Organization with over 500 Affiliated associations, submits here under reply to items Nos 10.1 &  10.1.2 under the head ‘Pension’ in the questionnaire
However, as Pension is not independent of Salary suggestions for basic structure are for Salary/Pension.

Item No 10.1 New pension Scheme i.e The retirement benefits of all Central Government employees appointed on or after 1.1.2004 are covered by the New Pension Scheme (NPS). What has been the experience of the NPS in the last decade?

Withdraw New Pension Scheme: for following reasons:
(i) Pension of Govt. employees is a deferred wage. Since wage paid out to them during the course of work tenure is kept low by design, to cater for pension. 
(ii) He/She forgoes with interest 8.33% of govt. matching contribution to PF.
(iii) Pension is a social security measure & cannot be subjected in any way to Market risks (iii) It does not guarantee minimum return & thus lacks the basic fiber of Social Security Scheme (iv). It is in no way better than the existing Scheme (vi)It does not provide guaranteed Family Pension to dependents & disabled siblings which exist in present scheme, even in case of spouse & dependent parents where death of the employee occur in early years of service there is no adequate social security.

Item 10.1.2  i.e.  As for as pre 2004 appointees are concerned, what should be the principles that govern thestructure of pension and retirement benefits?

Basic structure of Pay/ Pension
1. Keeping in view the Socialistic structure of the country , constitutional provisions & to reduce vast  inequality between have & have lots, it is proposed:  The Ratio between maximum & minimum of Salary/ Pension be brought down to  9:1. Ensuring uniformly equal rise in Salary/Pension of all employees/pensioners, irrespective of pre- retiral status. By adopting common multiplication factor for revision of Pension/Pay, as raising the ratio between minimum & maximum of salary/pension to 1:12.85 by 6thCPC  , instead of reducing it,  was  unconstitutional .

In order to cater to the need of talent attraction in all cadres 7th pay commission is requested to  first workout the top most revised salary/pension, divide it by 9 to arrive at the minimum revised salary & then derive a uniform multiplication factor  by dividing minimum of revised Salary/Pension by minimum of pre-revised salary/Pension for  revision of  Pay & Pension with the condition that Pension shall not in any case be less than 65% & family Pension 45% of the last Pay  in Pay Band i.e. Pay in Pay Band+ GP  /Pay scale or of average of last 10 months emoluments (Whichever is more beneficial) as was worked out & recommended by TECS (Tata Economic Consultancy Services)  consultant to Vth CPC (Para 127.9 Vol III 5th CPC report)

2.One Rank one pension: ‘Justice must be equal for all’. Otherwise, it breeds contempt, discontentment, inefficiency, corruption & finally the insurgency. We have seen it happening in Tribal areas of N.E, Chhatishgarh, Jharkand, Orisa, MP etc.

Vast inequality of income and wealth between lowest & the highest paid, violation of Article 14 has already induced contempt, discontent, inefficiency & corruption, in Civil services.

Govt. granted One Rank One Pension (OROP) to Armed forces, Judges granted it to themselves even a period of private practice of lawyer judges, to be counted towards qualifying service. Higher Bureaucracy got it through modified parity.   All other Central Govt. employees & Pensioners are definitely not the 2nd grade citizens!  One Rank one Pension to all retirees is constitutional requirement to ensure equality.

Defence Pensioners:  As far as Armed forces are concerned they do the supreme sacrifice for the country & must be the highest paid .For them the ratio between highest & lowest paid must not be more than 1:5 and instead of being thrown out at an early age they must be transferred to paramilitary/police force after active tenure in armed forces. Otherwise, if these retired army personnel trained in all sort of weaponry are left uncared, they may fall prey to undesirable anti National outfits. In their case it is also essential that retirees from uniformed cadre & civilian defence Pensioners are treated at Par for all purpose

2.Dearness relief : 100% neutralization with automatic Merger with Pension whenever it goes to 50%  :The Pension of Central Government Pensioners undergo revision only once in 10 years during which period the pensionstructure gets seriously dis-aligned; 50% increase in price takes place even in less than 5 years. This results in considerable erosion of the financial position of the pensioner. DR does not adequately take care of inflation at this level. Working employees are getting automatic relief by way of 25% increase in their allowances with every 50% rise in Dearness Allowance. As pensioners do not get any allowances, they feel discriminated against. In order to strike a balance, DR may be automatically merged with Pension whenever it goes to 50% .

3.Additional old age Pension :  5% upward enhancement in pension be granted every five years’  after the age of 60 years & upto 80 years & thereafter as per existing dispensation.       As in the present scenario of climatic changes, incidence of pesticides and rising pollution old age disabilities/diseases set in by the time an employee retires and go on manifesting very fast, needing additional finances to take care of these disabilities and diseases, especially as the cost of health care has gone very high.

4. Pension to be net of Income Tax :  The purchase value of pension gets reduced day by day due to continuously high inflation and steep rise in cost of food items and medical facilities. Retired persons/Senior citizens do not enjoy fully public goods and services provided by Government for citizens due to lack of mobility and many other factors. Their ability to pay tax gets reduced from year to year after retirement due to ever-increasing expenditure on food and medicines and other incidentals. Their net worth at year end gets reduced considerably as compared to the beginning of the year. Inflation, for a pensioner is much more than any tax. It erodes the major part of the already inadequate pension. To enable pensioners, at the far end of their lives, to live in minimum comfort and to cater for ever rising cost of living, they may be spared from paying Income Tax.

5. Restoration of commuted value of Pension in 12 years: Commutation value in respect of employee superannuating at the age of 60 years between 1.1.1996 and 31.12.2005 and commuting a portion of pension within a period of one year would be equal to 9.81 years Purchase. After adding thereto a further period of two years for recovery of interest, in terms of observation of Supreme Court in their judgment in writ petitions No 395-61 of 1983 decided in December 1986, it would be reasonable to restore commuted portion of pension in 12 years instead of present 15 years. In case of persons superannuating at the age of 60 years after 31.12.2005 and seeking commutation within a year, numbers of purchase years have been further reduced to 8.194. Also, the mortality rate of 60 plus Indians has considerably reduced ever since Supreme Court judgment in 1986; the life expectancy  stands at 76 years now. Therefore, restoration of commuted value of Pension after 12 years is fully justified.

6. The 6th Central Pay Commission’s improved benefits, e.g. full pension for 20 years of service/10 years in superannuation cases, last pay drawn or average of last 10 months’ pay whichever is beneficial to the retiring employee as emoluments for computation of pension etc., have been limited only to post-1.1.2006 retirees.  This is in violation of the letter and spirit of Hon’ble Apex Court judgment in Nakara Case. 

We appeal to the 7th CPC to extend the above benefits to all pre-1.1.2006 retirees with monetary benefit from 1.1.2006 to do them equal justice. And that new/improved benefits which 7th CPC may recommend, too be made equally applicable to present & past pensioners

7..Medical facilities: “Health is not a luxury” and “not be the sole possession of a privileged few”. It is a Fundamental Right of all present & past Employees!
To ensure hassle free health care facility to Pensioners/family pensioners, Smart Cards be issued irrespective of departments to all Pensioners and their Dependents for cashless medical facilities across the country. These smart cards should be valid in
  • all Govt. hospitals
  • all NABH accredited Multi Super Specialty hospitals across the country which have been         allotted land at concessional rate or given any aid or concession by the Central or the State govt.
  • all CGHS, RELHS & ECHS empanelled hospitals across the country.
  • Medical attendants. For  reimbursement of bills for treatment & for hospitalization . No referral should be insisted in case of medical emergencies. For the purpose of reference for hospitalization & reimbursement of expenditure thereon in other than emergency cases Doctors/Medical officers working in different Central/State Govt. department dispensaries/health units should be recognized as Authorized medical attendant.

The enjoyment of the highest attainable standard of health is recognized as a fundamental right of all workers in terms of Article 21 read with Article 39(c), 41, 43, 48A and all related Articles as pronounced by the Supreme Court in Consumer Education and Research Centre & Others vs Union of India (AIR 1995 Supreme Court 922) The Supreme court has held that the right to health to a worker is an integral facet of meaningful right to life to have not only a meaningful existence but also robust health and vigour. Therefore, the right to health, medical aid to protect the health and vigour of a worker while in service or post retirement is a fundamental right-to make life of a worker meaningful and purposeful with dignity of person. Thus health care is not only a welfare measure but is a Fundamental Right.

            We suggest that, all the pensioners, irrespective of pre-retiral class and status, be treated as same category of citizens and the same homogenous group. There should be no class or category based discrimination and all must be provided Health care services at par .

8. Hospital Regulatory Authority: To ensure that the hospitals do not avoid providing reasonable care to smartcard holders and other poor citizens, a Hospital Regulatory Authority should be created to bring all NABH-accredited hospitals and NABL-accredited diagnostic Labs under its constant monitoring of quality, rates for different procedures & timely bill payments by Govt. agencies and Insurance companies. CGHS rates be revised keeping in mind the workability and market conditions.

9.Fixed Medical allowance (FMA): As is recorded in Para 5 of the minutes of Committee of Secretaries (COS) held on 15.04.2010 (Reference Cabinet Secretariat, Rashtrapati Bhavan No 502/2/3/2010-C.A.V Doc No. CD (C.A.V) 42/2010 Minutes of COS meeting dated 15.4.2010) which discussed enhancement of FMA: CGHS card estimates for serving Personnel since estimates are not available separately for pensioners M/O Health & Family Welfare had assessed the total cost per card p.a. in 2007-2008 = Rs 16435 i.e. Rs.1369 per month for OPD. Adding to its inflation the figure today is well over Rs 2000/- PM. Ministry of Labour & Employment, Govt. of India vide its letter no. G-25012/2/2011-SSI dated 07.06.2013 has already enhanced FMA to Rs 2000/- PM for EPFO beneficiaries. Thus, to help elderly pensioners to look after their health, Adequate raise in FMA will encourage a good number of pensioners to opt out of OPD facility which will reduce overcrowding in hospitals. OPD through Insurance will cost much more to the Govt. As such the proposal for raising Fixed Medical allowance to Pensioners is fully justified and is financially viable.

            We suggest that FMA for all C.G. Pensioners be raised to at least Rs 2000/- PM without any distance restriction linking it to Dearness Relief for automatic further increase. We further demand that FMA be exempted from INCOME TAX: Fixed Medical Allowance (FMA) is a compensatory allowance to reimburse the medical expenses. As Medical Reimbursement is not taxable, FMA should also be exempted from Income Tax.

10.Grievance redressal Mechanism: Pensioners/Family Pensioners are exploited, harassed and humiliated by their own counterparts in chair, who at the sight of an old person adopt a wooden face and indifferent attitude. Pensioners do not have representation even in Forums & Committees wherein pension policies and connected matters are discussed. The forum of Pension Adalat too is not of much avail as it meets only once a year which is too long a period for an elderly nearer to his end. Moreover, these Adalats deal with settlement claims only. SCOVA too meets only twice a year for about 3 hours at each occasion. Moreover, the scope of SCOVA is limited to feedback on Government policies. DOP (P&PW) is perceived as a toothless authority which lacks direct Service Delivery Capability. It has been striving over the years to redress the Pensioners’ grievances through the ‘Sevottam’ model of the Department of Administrative Reforms & Public grievances; in the absence of strict timeline with punitive clause it is, however, proving to be a failure. Grievances are either not resolved for years or closed arbitrarily without resolving.

We therefore, appeal that for resolving Pensioners complaints of all pensioners,

(i) A strict time line with punitive clause be introduced in “Sevottam model”
(ii) Grievances are not allowed to be closed without resolving.
(iii) SCOVA be upgraded to JCM level covering all Pensioners by introducing suitable legislative amendment if required.


11. Representations in various committees : As recommended vide Vth CPC report Vol III para 141.30 Pensioners’ representatives should be included in various committees & other Fora of Govt where issues relating to the welfare of pensioners are likely to be discussed &debated: Discussing, debating and deciding the matters / Policies relating to Pensioners, with representatives other than those of pensioners, is unfair & against the Rules of ‘Natural Justice’. At present various Committees like National Anomaly Committee (NAC) and JCM (on Pensioner matters), are there wherein matters / policies relating to pensioners’ welfare are discussed and decided, but they do not have pensioners’ representatives with the result their viewpoints, hardships & anomalies are not properly represented. As pensioners are a homogenous class, there is an urgent need to constitute separate Committees for pensioners wherein matters / policies / anomalies relating to pensioners of all Groups, categories &departments may be discussed.

With regards
Truly Yours,

ER.S.C.Maheshwari
Secy.Genl. Bharat Pensioners Samaj

NOO
Copy: Sh.Shiv Gopal Mishra Secretay JCM (Staff side) for necessary favourable action.

S.C.Maheshwari
Secy. Genl. BPS

Sunday, 27 April 2014

Computation of reservation - Implementation of the judgment of Hon’ble Supreme court in the matter of Union of India & Anr. Vs. National Federation of Blind & Ors.

No.36012/24/2009-Estt.(Res.)
Government of India
Ministry of Personnel, Pubic Grievances and Pensions
Department of Personnel and Training

North Block, New Delhi
Dated the 17th April, 2014

OFFICE MEMORANDUM

Sub: Computation of reservation — Implementation of the judgment of Hon’ble Supreme court in the matter of Union of India & Anr. Vs. National Federation of Blind & Ors.

The undersigned is directed to refer to this Department’s OM. of even no. dated 20.03.2014 regarding judgment of the Hon’ble Supreme Court pronounced on 08.10.2013 in the matter of Civil Appeal No.9096 of 2013 (arising out of SLP(civil) No.7541 of 2009 titled Union of India & Anr. Vs. National Federation of Blind & Ors. and this Department’s O.M. of even no. dated 03.12.2013.


2. The Ministries/Departments/Organisations of the Government of India were requested to furnish data on vacancies available and posts identified for persons with disabilities in all the cadres under their control, including attached offices, subordinate offices, public sector undertakings/Government companies, cantonment board and the services under their administrative control so that consolidated Status Report could be filed before the Hon’ble High Court of Delhi before the next date of hearing on 28.04.2014.

3. The Ministries/Departments who have already furnished requisite information may furnish data in regard to the Services, if any, which are being administered by them.

sd/-
(Debabrata Das)
Under Secretary to the Govt. of India

Source: www.persmin.gov.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02adm/36012_24_2009-Estt-Res.pdf]

Registration of Government employees aged 60 years and above under National Pension System (NPS)

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY 
22 April, 2014 
PFRDA/2014/3/PDEX/12 

Subject: Registration of Government employees aged 60 years and above under National Pension System (NPS) 

The Authority has been receiving several requests from various governments (central & state) to approve the registration of subscribers under National Pension System (NPS) who are aged 60 years and above and which are being approved on case by case basis by PFRDA at present. 

Keeping in view of the difficulties being faced by subscribers, now the Authority has decided to enroll all eligible Government employees (central & state) who are on the rolls of the government in to NPS, irrespective of the age at the time of entry, subject to the condition that the total period of contribution to NPS account shall not be more than 42 years. The NPS applications of such subscribers need to be submitted through the appropriate nodal officer of the Govt/ Deptt, in line with the procedure adopted for NPS registration for Government employees aged below 60 years. Also, the responsibility for ensuring that the employee is eligible for being covered under NPS and that the NPS contribution is not paid beyond 42 years during the entire service period for such an employee, lies with the department submitting the subscriber registration form. 

This is for the information of all concerned. 

Sd/- 
Venkateswarlu Peri 
General Manager 

Source : www.pfrda.org.in
[http://www.pfrda.org.in/writereaddata/linkimages/Registration%20of%20Govt%20employees%20aged%2060%20years%20and%20above763537413.pdf] 

EXPECTED PAY STRUCTURE OF 7TH CPC

EXPECTED 7TH CPC PAY SCALE :-

7th CPC Pay Scale is fast becoming the most mesmerizing phrase among Central Government employees these days. 

Every Central Govt Employee is waiting to find out the changes in their pay scale that the 7th CPC would recommend to the pay structure. Sensing this eagerness, Bloggers have been regularly coming up with their own versions of what the pay structure could be. Do not take those writings seriously sand authentically. 

Based on all the changes right from the 1st CPC, until the 6th CPC, we have predicted a pay structure. Even though we weren’t keen on it, we have been receiving requests by email and comments. At a point, it became unavoidable. We just had to give our own interpretation too. 
Since the basic pay of an ordinary employee has evolved from 260-950-3050-7730, the next change is expected to increase the salary by 2.5 times. Our Projected Pay Scale is expecting an increase of no more than 3 times. 

It could be 260-950-3050-7730-22500..!

More than the hike, everybody is hoping that the Grade Pay would be in proper series. 

And, everybody wants and hopes for a recommendation that prescribes a uniform Multiplication Factor (6th CPC 1.86) to all categories of employees. 
6th CPC PAY STRUCTURE
EXPECTED PAY STRUCTURE OF 7TH CPC
Pay Band
Pay Bands
Grade Pay
Pay in the Pay Band
Pay Scale
Pay Band
Grade Pay
Pay in the Pay Band
Pay Scale
PB-1
5200-20200
1800
5200
7000
15000-60000
5000
15000
20000
PB-1
5200-20200
1900
5830
7730
15000-60000
5500
17000
22500
PB-1
5200-20200
2000
6460
8460
15000-60000
6500
20000
26500
PB-1
5200-20200
2400
7510
9910
15000-60000
7500
23000
30500
PB-1
5200-20200
2800
8560
11360
15000-60000
8500
26000
34500
PB-2
9300-34800
4200
9300
13500
30000-100000
10000
30000
40000
PB-2
9300-34800
4600
12540
17140
30000-100000
13500
35000
48500
PB-2
9300-34800
4800
13350
18150
30000-100000
15000
40000
55000
PB-3
15600-39100
5400
15600
21000
50000-150000
16500
50000
66500
PB-3
15600-39100
6600
18750
25530
50000-150000
20000
60000
80000
PB-3
15600-39100
7600
21900
29500
50000-150000
23000
70000
93000
PB-4
37400-67000
8700
37400
46100
100000-200000
26000
100000
126000
PB-4
37400-67000
8900
40200
49100
100000-200000
27500
110000
137500
PB-4
37400-67000
10000
43000
53000
100000-200000
30000
120000
150000

Source - 90paisa



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