As the Budget 2024-2025 approaches, Central Government Employees are eagerly awaiting the resolution of several important issues. They hope the following points will be considered and addressed. This article presents the key demands of the Central Government Employees for the upcoming budget in a clear and simple manner, making it easy for everyone to understand.
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Restoring the Old Pension Scheme.
The Old Pension Scheme should be restored as it is a matter of Social Security. The introduction of the New Pension System (NPS) with effect from 01.01.2004 has created an atmosphere of insecurity for their families. All the employees are frustrated and demotivated as they are unsure of how the NPS will unfold after 25-30 years when they retire.
The Staff Side, therefore, requests the restoration of the Old Pension Scheme for all Central Government Employees.
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Constitution of the 8th Central Pay Commission
The 7th CPC was implemented with effect from 01.01.2016, and as per past practice, CPCs are implemented every 10 years. Since the DA element has crossed 50%, there is an urgent need to revise the Pay Matrix, Allowances, and Pensionary benefits based on the current situation and inflation.
The Staff Side demands that the 8th Central Pay Commission be considered immediately so that, after thorough study and analysis, the recommendations could be implemented with effect from 01.01.2026. Delays in implementing the recommendations result in financial hardship for employees.
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Staff Benefit Fund – Increase in per-capita contribution over the Indian Railways
An annual grant of Rs. 800/- per capita is provided by the Indian Railways on 1st April for the Staff Benefit Fund. The per capita contribution was enhanced to Rs 800/- with effect from 01.04.2014. It is worth mentioning here that, for the past ten years, no revision has been done. With this meager grant, it is very difficult to manage scholarships for higher professional studies, provide financial aid to staff in distress or due to natural calamities, and arrange activities related to sports, trekking, women empowerment, Ayurvedic and Homeopathic dispensaries, etc.
No revision was done even after the 7th Central Pay Commission recommendations, which were implemented with effect from 01.01.2016.
The Staff Side, therefore, demands that the grant of per capita contribution for the Staff Benefit Fund in Indian Railways be enhanced to meet the expenses incurred to run the aforementioned activities for the staff.
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Restoration of Commutation of Pension
Many employees opt for the Commutation of Pension on their superannuation. As per current rules, the commuted value of the pension is restored after 15 years. It is worthwhile to mention that, due to a decline in interest rates, the commuted value and interest thereon at present rates are recovered in 12 years.
The Staff Side submits that the recovery of the commuted value of the pension beyond the period of 12 years is unjustified and an unnecessary burden on the pensioners. It is, therefore, requested that the restoration of the commuted value of the pension be done after 12 years instead of 15 years.
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Income Tax Slabs
All the Central Government Employees are covered under Income Tax Slabs and are paying it despite facing financial crises.
The Staff Side requests that the Income Tax Slabs be rationalized to provide relief to employees. Standard deductions, deductions under Section 88C, and other exemptions should also be provided in the new Income Tax Structure to encourage employees to save, which will ultimately benefit the Government and help expand mega infrastructure plans for the development of our country.
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Income Tax Exemption for Pensioners
On superannuation, pensioners receive 50% of the last pay drawn. To augment their earnings and meet requirements, they invest their retirement corpus in Bank FDs and other investment tools. The interest earned is taxable, which erodes their earnings. Technically, Income Tax on interest and the erosion of money value due to inflation leave them with no earnings literally from their money parked in the banks.
Moreover, due to old age, expenditures on medical bills increase, costs of attendants are incurred, and they also have to incur expenses on social occasions. Keeping in view the reduced earnings on retirement and increased expenditures, it is requested to exempt all pensioners from Income Tax.
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Medical Facilities for Employees
Presently, medical facilities are being provided to all employees under CGHS, and Railway Employees are provided medical facilities under RELHS.
It has been noticed that, whenever specialized treatment is required, employees are referred to the Empaneled Hospitals. It is very difficult to admit them to Specialized Hospitals that have earmarked few beds for CGHS Employees, and the patient has to run from one hospital to another. Another reason for facing this problem is the low rates fixed for specialized treatment by CGHS.
It is, therefore, requested that specialized treatment facilities be augmented in Government Hospitals and Railway Hospitals, which will eradicate this problem and also be financially viable as huge and inflated bills, raised on referred cases, will be eliminated.
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Capacity Augmentation in Railways
A special enhanced budget should be provided for the Railways to meet capacity augmentation. Many stations require upgrades, introduction of additional lines for smooth operation, and increasing the speed of trains.
“KAVACH” needs to be implemented Pan Indian Railways in phases to ensure enhanced safety.
Passenger amenities at the platform, retiring room complexes at the main stations need to be developed, keeping in view passenger satisfaction and the increase in the number of passengers.
Training facilities for the staff need to be augmented by having institutes fully equipped to meet changing technology and keep pace with future research and transformation.
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Home Loan – Methodology of Recovery
As per current provisions, if House Building Advance is taken from the department, then the recovery of the principal amount is done first. Upon its completion, the total interest accrued is deducted in equated monthly installments.
In the present scenario, the budget allotted for HBA is insufficient to cater to needs, and employees are forced to avail House Building Advance from the banks. Banks deduct interest along with the principal from the starting EMI, and it is noticed that very little amount towards the principal is deducted, thus interest is charged heavily as the principal reduces minimally in the initial years.
It is requested that the recovery of House Building Allowance should be done in the same manner as computed departmentally, i.e., the 1st EMI should reduce the principal, and after the recovery of the principal, the due interest may be deducted. This will help employees to avail House Building Allowance and they will feel comfortable while repaying it.
The Central Government Employees hope that these pressing issues will be addressed in the upcoming Budget 2024-2025. Resolving these concerns will boost their morale and enhance their efficiency, ultimately benefiting both the employees and the nation.