Appeal of Confederation to make the 2nd September, 2015 All India Strike a historic success

Dear Comrades,

                We have placed on our website the synopsis of the discussion the leaders of the Central Trade Unions had with the Group of Ministers on the 12 point charter of demands. The Central Trade Unions evaluated the Government’s response to the strike call and have come to the conclusion that in the absence of any tangible result, the strike action must take place.  The only issue on which there had been a concrete proposal from the Government was on the question of raising the bonus ceiling.  In fact such an assurance has been given by the earlier Government also.  Due to the pressure exerted by the employing class, the said assurance could not be translated into reality.  To have the assurance to be put into practice, the Bonus Act has to be amended and that is possible only in the next session of the parliament.  In other words, if one is to believe the assurance held out by the Government on the question of raising the ceiling for bonus computation, it can only have prospective effect i.e. for the next year 2016.  We firmly believe that the corporate would not allow the present government to give effect to this assurance.  The acrimonious ceiling on bonus while allowing unlimited extraction of profit for the companies is to be fought out through bitter struggles.

                There had been no word from the Government on the question of rolling back its proposals on the labour reforms. The proposed labour reforms will hurt the working class most.  The regularization of contract workers, payment of minimum wage, ensuring statutory Pension benefit, the registration or recognition of trade unions within a stipulated time limit to enable the workers to have the right to collective bargaining, the non implementation of the agreements reached at the various tripartite Labour conferences were some of the significant issues on which the working class sought settlement. Introduction of 100% FDI in Railways, 49% in Defence, corporatisation & privatisation of government entities, end for contract/casual temporary employment also met with stoic silence or rejection.  The Group of Ministers has successfully eluded the issues. The BMS unions have declared that they would withdraw from the strike action.  Their decision being political based is understandable, but is difficult to appreciate. We can only hope against hope that they would realize the reality of the situation in the days to come and become part of the joint struggles very soon.

 

                The 7^th CPC has sought further time to submit its report.  They are now likely to submit their report by 31^st December, 2015.  Given the way the commission had acted on this vital issue, we are not certain of it.  It is on the specious plea that they would be submitting their report within the stipulated time, they had rejected our demand for interim relief.  They ought to have submitted an interim report to the Government before seeking further time on the memorandum submitted by the Staff Side on merger of DA and Interim relief.  Even if the report is submitted say by 31^st December, 2015,  which we feel is unlikely, the Government is bound to take another six months to take a view on the Commission’s recommendations.   It is incumbent upon the National JCA to meet immediately and take appropriate decision in the light of the unexpected step taken by the Commission in seeking further time to submit its report.  They must go ahead with the decision to go on strike from 23^rd November, 2015 demanding the Commission to submit urgently an interim report on merger of DA and Interim relief.

                There had been no positive steps taken by the government to revive the functioning of the JCM at National or Departmental levels.  There appears to be no intention on their part to cause discussion on our charter of demands.   In this background we must revitalize and rejuvenate the functioning of our   Organizations at all levels.  We have received excellent reports of the strike preparation from all over the country.

DO EVERYTHING NEEDED TO MAKE THE 2^ND SEPTEMBER, STRIKE A STUPENDOUS SUCCESS.

With greetings,

Yours fraternally,

M.Krishnan

Secretary General

APPEAL

APPEAL

ALL POSTAL, RMS & GDS (NFPE) COMRADES ARE

REQUESTED TO MAKE MAXIMUM EFFORTS TO MAKE 

THE ALL INDIA ONE DAY GENERAL STRIKES,

          2NDSEPTEMBER, 2015 A HISTORIC SUCCESS.

LEAVE NO STONE UNTURNED

KEEP TEMPO HIGH

 (R.N. Parashar)

Secretary General

       NFPE

HAPPY RAKSHA BANDHAN TO ALL

पबित्र  रक्षाबंधन के शुभ अबसर पर सभी  भारतीओं को  हमारे तरफ से हार्दिक सुभकामनाएँ 

Regards :-
All Members of AIPEU POSTMEN & MTS, Phulbani Divisional Branch, Phulbani-762001

Appeal to make the one day nationwide strike successful on 2.9.2015

Inter Ministerial Committee Holds Wider Consultations with Trade Unions on Charter of Demands

Press Information Bureau Government of India

Ministry of Labour & Employment

27-August-2015 21:05 IST
Inter Ministerial Committee Holds Wider Consultations with Trade Unions on Charter of Demands Appeals to Reconsider Proposed Call for Strike in View of Discussions 
The Second meeting of Inter-Ministerial Committee (IMC) continued discussion on 12 Demands Charter of Trade Unions  for the second day here today in continuation of discussions held yesterday.   The Committee comprises Shri Arun Jaitley, Finance Minister, Shri Bandaru Dattatreya, MoS(IC) Labour and Employment, Shri Dharmendra Pradhan, MOS(IC) Petroleum and Natural Gas, Shri Jitendra  Singh, MoS DOPT, and Shri Piyush Goel, MoS (IC),Power. During the discussions Trade Unions expressed concern and asked for clarifications on their demands. Addressing their concerns and expectations, the Finance Minister explained policies on which the Government is working and assured that the Government is committed to welfare of labour.  Underlining the importance of role of Trade Unions,  Shri Jaitely  assured the Central Trade Unions that  all labour laws reforms will be done with due discussions and tripartite consultations.  
In view of the discussions held in conducive and cordial atmosphere, the IMC appealed to Trade Unions to reconsider the proposed call for strike on 2^nd September, 2015.The Trade Unions  have agreed to consider the appeal. 
In view of the suggestions given by Central Trade Unions in the meetings held on 19^th July, 26^thAugust and 27^th August, 2015, the Government assured the following : 

1.        Appropriate legislation for making formula based minimum wages mandatory and applicable to all employees across the country.  
2.       For the purposes of bonus the wage eligibility limit and calculation ceiling would be appropriately revised. Earlier in 2006-07 the calculation ceiling was decided at Rs.3500/- and eligibility limit was wage of Rs.10,000/- per month which is proposed to be revised to Rs.7,000 and Rs.21,000 respectively. 
3.        The Government is expanding the coverage of social security and working out ways to include construction workers, Aanganwari workers ,ASHA workers  and Mid Day Meal workers..  
4.       Regarding contract workers the Government assured that they will be guaranteed minimum wages.  Moreover, the Government is working out ways so that workers of industries will get sector specific minimum wages.  
5.        Government has already enhanced minimum pension for EPFO members and every pensioner gets minimum pension of Rs.1000/- per month perpetually.
6.       Labour laws reforms will be based on tripartite consultations as already stated by the Prime Minister.  The States are also being advised to follow the tripartite process.
7.       For strict adherence to labour law enforcement, advisory has been issued to the State/UT Governmaents and strict monitoring has been initiated by Central Government.
8.        For employment generation Mudra Yojana, Make in India, Skill India and National Career Service Portal initiatives have been taken.
9.       Abolition of interviews for all primary jobs which do not require any special knowledge/expertise, is being done for transparency and expediting the process of recruitment.
10.    Inflation is lowest in the last many years excepting two items onion and pulses. Government is taking necessary steps to contain the higher prices of these two commodities also.It was further clarified that there is no ban on filling up of vacancies in Government jobs and all concerned Departments are taking necessary action to fill-up these vacancies. It was further assured that the Government is committed to job security, wages security and social security to the workers. The issue of equal wages for equal work for contract workers is an issue requiring wider consultations and a committee will be constituted, if required.

Channelising Emails addressed to DOP NOC from locations

From: Ashish Dash <ashish.dash@sifycorp.com>
Date: 25 August 2015 at 11:43

Subject: Channelising Emails addressed to DOP NOC from locations

To: adpmu-odi <adpmu-odi@indiapost.gov.in>, "adtech-bmp.dop" <adtech-bmp@indiapost.gov.in>, PMG Sambalpur Region <pmg_sambalpur@indiapost.gov.in>, rit.sambalpur@indiapost.gov.in, "Regional IT Team, Behrampur Region" <rit.berhampur@indiapost.gov.in>, "Circle IT Team, Orissa Circle" <cit.od@indiapost.gov.in>, spocodisha@gmail.com, Odisha Dmcc <odishadmcc@gmail.com>, CPMG Orissa Circle <cpmg_ori@indiapost.gov.in>, PMG Behrampur Region < pmg_berhampur@indiapost.gov.in>

Cc: satyabrata.banamali@sifycorp.com, hemanta.kumar@sifycorp.com, Dinesh Mohapatra <mohapatra.dinesh@sifycorp.com>, Ashish Dash <ashish.dash@sifycorp.com>

Dear Sir/Madam,

 

We are seeing that all  locations are marking initial mail for reporting incidents to both NOC and Helpdesk. This is resulting in delicacy of work and in the midst important escalations from circles / Divisions and service requests from other SI partners get delayed or missed out.  

Kindly circulate to your divisions/post offices that initial reporting of incident be done only to DOP Helpdesk (dop.helpdesk@sifycorp.com).  

If after raising a ticket post office wants to get an update, they can do so by logging into service desk with their WEG Code to get the updates. Some divisions / region are already doing this.  

Thanks in advance for your co-operation.   

Warm regards, 

Ashish Dash

SIFY Technologies Ltd
Bhubaneswar

REVISION OF FIXED MONETARY COMPENSATION (FMC) TO DELIVERY STAFF AND REMUNERATION TO OTHER STAFF

·         D.G. Posts No. 10-7/2001-PE-II dated 14^th August, 2015.

 I am directed to refer to Directorate letters of even number dated 04.09.2002, 20.01.2003 and 24.11.2010 on the above mentioned subject.

2.           The Department has revived a number of references from the staff Associations requesting for upward revision of Fixed Monetary Compensation (FMC) admissible to Postman Staff. A Committee of Senior Officers  was constituted for looking into the issue and the  report of the Committee has been examined  carefully in consultation with Integrated  Finance  Wing  and the Competent Authority has ordered enhancement of the  Fixed Monetary  Compensation (FMC) admissible  to Postmen staff. The details are as under:

S.L. No.	Item	Existing Rate	Revised Rate
(a)	When one Postman performs duty of an absentee Postman by combination of duties.	Rs.50 per day	Rs. 94 per day
(b)	When two Postmen perform duty of an absentee Postman by sharing the beat.	Rs.24 per day	Rs.47 per  day

3.           The Competent  Authority  has also ordered fixation / revision of Holiday/Sunday Monetary  Compensation payable to Postmen  Staff and other  Departmental Staff brought on duty on 2^nd consecutive Holiday if three consecutive  holidays occur or duty performed on Sunday as shown under:

Cadre	Item	Existing Rate	Revised	Remarks
Postmen/Sorting Postmen	When duty performed on Holiday/Sunday	Rs.85	Rs.282/- per day for full day duty.	Nil
MTS	When duty performed on Holiday/Sunday	Rs.60	Rs.29/-per hour, subject to maximum of 3 hours	If duty performed above 3 hours, the employee is eligible to claim for 3 hours pay only.
Postal Assistant	When duty performed on Holiday/Sunday	Rs.85	Rs.41/-per hour, subject to maximum of 3 hours
Supervisor	When duty performed on Holiday/Sunday	Rs.85	Rs.47/-per hour, subject to maximum of 3 hours

4.           All other conditions for payment of Fixed Monetary Compensation (FMC) issued vide OM No. 10-23/87-PE-I dated 21.12.1993 and delivery of Unregistered letters on Holidays issued  under 9-25/92-C1 dated 10.09.92 will remain unchanged.

 5.          The expenditure on account of revision has to be met from the allocated funds of the units under the prescribed Head of Account.

  6.         These orders will take effect from the date of issue.

7.           This issues in consultation with the Integrated Finance Wing vide their diary number 118/FA/2015/CS dated 14.08.2015.

                                                                                                                       

                                                                                           Sd/-

                                                                                                   (Maj)S.N.Dave)

Assistant Director General (Estt.

Physical standard for habitats of Odisha willing to join Army Postal Services against the posts of MTS

SR-1

A Web-Based Portal VIZ. Vidya Lakshmi (www.vidyalakshmi.co.in) Launched for Students Seeking Educational Loans

A Web-Based Portal VIZ. Vidya Lakshmi (www.vidyalakshmi.co.in)  Launched for Students Seeking Educational Loans;

First Portal of Its Kind Providing Single Window for Students to Access Information and Make Application for Educational Loans Provided by Banks as well as for Government Scholarships

A web-based portal viz. Vidya Lakshmi (www.vidyalakshmi.co.in) was  launched on the occasion of Independence Day i.e. 15^th August, 2015 for the benefit of  students seeking Educational Loans. The Portal has been developed and maintained by NSDL e-Governance Infrastructure Limited (NSDL e-Gov) under the guidance of Department of Financial Services, Ministry of Finance, Department of Higher Education, Ministry of Human Resource Development and Indian Banks’ Association (IBA).

 

Earlier the Union Finance Minister Shri Arun Jaitley in the Union Budget for 2015-16inter-alia had proposed to set-up a fully IT based Student Financial Aid Authority to administer and monitor Scholarship as well as Educational Loan Schemes, through the Pradhan Mantri Vidya Lakshmi Karyakram (PMVLK) to ensure that no student misses out on higher education for lack of funds. The launch of the aforesaid Portal is a first step towards achieving this objective,

 

Vidya Lakshmi Portal is a first of its kind portal providing single window for Students to access information and make application for Educational Loans provided by Banks as also Government Scholarships. The Portal has the following features:

 

·         Information about Educational Loan Schemes of Banks;

·         Common Educational Loan Application Form for Students;

·         Facility to apply to multiple Banks for Educational Loans;

·         Facility for Banks to download Students’ Loan Applications;

·         Facility for Banks to upload loan processing status;

·         Facility for Students to email grievances/queries relating to Educational  

·         Loans to Banks;

·         Dashboard facility for Students to view status of their loan application and   

·         Linkage to National Scholarship Portal for information and application for

·         Government Scholarships.

 

So far, 13 Banks have registered 22 Educational Loan Schemes on the Vidya Lakshmi Portal and 5 Banks viz; SBI, IDBI Bank, Bank of India, Canara Bank & Union Bank of India have integrated their system with the Portal for providing loan processing status to students. This initiative aims to bring on board all Banks providing Educational Loans. It is expected that students throughout the country will be benefited by this initiative of the Government by making available a single window for access to various Educational Loan Schemes of all Banks.

Source : PIB Release, 20.08.2015

Government committed to reviving postal department: Ravi Shankar Prasad

The government will revive the postal department by using over 1.5 lakh post offices for furthering financial inclusion. 

NEW DELHI: Communications Minister Ravi Shankar Prasad today said the government will revive the postal department by using over 1.5 lakh post offices for furthering financial inclusion and payments bank is a step towards it. 
The Reserve Bank of India has granted 'in-principle' approval to Postal Department to set up payments bank. 
"We have to make all the preparations in 18 months, which we will do. The Modi government is going to revive the postal segment and post payment bank is an indication to that," Prasad told reporters here. 
He said that the 1.50 lakh post offices from Kashmir to Kanyakumari will play an important role in financial inclusion. 
Prasad said since becoming the Communications Minister, he has tried that postal department should move forward. 
"You know in e-commerce, postal department is moving forward, they have done business of about Rs 600 crore in the last 2 months," he said. 
The government will soon give handheld devices to all rural post offices, he added. 
The payments bank licence will enable the Department of Post (DoP) to offer banking services to the masses through its vast network of 1,54,000 post offices, of which 1,30,000 are in rural areas. 
As per RBI guidelines, payments bank would offer a limited range of products such as demand deposits and remittances. They will be allowed to issue ATM or debit cards as other prepaid payment instruments, but not credit cards.Meanwhile, regarding electronic manufacturing the Minister said, under MSIPS scheme proposals worth Rs 30,000 crore have come and approval has been given to around Rs 12,000-13,000 crore. 

Read more at:
http://economictimes.indiatimes.com/articleshow/48556337.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

RBI gives in-principle nod to 11 applicants including RIL, Aditya Birla Nuvo

RBI gives in-principle nod to 11 applicants including RIL, Aditya Birla Nuvo

MUMBAI: Reliance Industries, India Post, Bharti Airtel, Vodafone and Paytm are among  11 applicants that have got 'in principle' approval for setting up payments  banks that will provide barebones facilities aimed at covering the vast swathe  of population that has no access to financial services. 

They will take deposits,  convey remittances and dispense payments to recipients, making them ideal for  migrant workers who need to send money home, for instance. They will not engage in lending. Apart from India's top phone companies and the  post office, others that have got initial Reserve Bank of India approval out of  42 applicants include Sun Pharma founder Dilip Shanghvi, Aditya Birla Nuvo, Fino PayTech, Tech  Mahindra, National Securities Depository and Cholamandalam Finance.

Applicants that sought licences have tied up with a range of partners. "The  applications were screened for financial soundness, i.e., five-year track record  of the promoter and the key entities of the promoter group," RBI said in a statement. "The assessment also included

governance issues with a focus on 'fit and proper' criteria for promoters based  on due diligence reports and/or any other information indicating deliberate and  repeated violations of law/regulations."

Those that didn't make the cut include Muthoot Finance, Future Retail's Kishore  Biyani and Videocon. The central bank chose the applicants based on their  assessed ability to reach customers with technology along with the financial  strength to roll out services in areas that remain uncovered, RBI said.

The central bank kept the hopes of many applicants alive by promising to move to  a process of "on-tap" licensing. This means applicants can seek licences  whenever they want to do so. "We will do every justice to this opportunity,"  said Paytm founder Vijay Shekhar Sharma. "Led by technology and a lean structure  at Paytm, we will bring half-a-billion Indians to the mainstream economy by  2020.

We want to be the driver of financial inclusion. It will be a vibrant  ecosystem."
EXISTING BANKS MAY SUFFER 

Existing  banks may lose some business, even though some of the bigger ones have launched  wallets and other app-based functions. Companies that provide wallet services  such as Oxigen or Itz Cash could also face pressure.

RBI Governor Raghuram Rajan had promised to end the era of unified banking  licences, of which very few have been issued, which kept more than half the  nation unbanked until Prime Minister Narendra Modi's Jan Dhan Yojana made it  possible for nearly every household to have an account. If payments banks  succeed, rural India could be sold more financial products such as insurance and  mutual funds, channelising savings into productive purposes.

Payments banks can distribute third-party financial products but can't lend or  issue credit cards. They will have to invest most of their deposits in  government securities and keep the balance with banks. Promoters need to have  least Rs 100 crore in capital. "We see this licence as an opportunity to promote  financial inclusion by providing banking and transaction services to unbanked,  underbanked and small businesses," said SBI Chairman Arundhati Bhattacharya.

LEVERAGING REACH OF MOBILE TECH

 "With over 90,000  m-pesa agents, we are already providing people in remote areas a convenient way  to transfer money and make payments in a safe and secure manner," said Sunil  Sood, managing director and CEO of Vodafone India. "We remain committed to  actualise the government's vision of financial inclusion by leveraging the reach of mobile technology to service the unbanked and under serviced sections of the  society."

GV Nageswara Rao, MD & CEO of NSDL, said, "The payment landscape is poised  for disruption. Over time, we have to move electronic. We have a track record of  innovation to make changes in the way the common man is able to transact, make  or receive payments. The card payment system has not taken off because there is  a cost to the merchant. The advent of smartphones opens up the opportunity for  payments banks."

Rishi Gupta, MD & CEO of Fino PayTech, said, "Our existing structure is  ready for payments bank challenges. We plan to raise about Rs 350 crore to scale  up business at Fino Payments Bank. At present, we have over 30 million customers  in our business correspondence business and about 5 million in the remittance  business."

Dipak Gupta, joint managing director of Kotak Mahindra Bank,  said, "Broadly, telcos have a large customer base and thus we get an opportunity  to service a different product.

The challenge is how do you make e-payments a  normal part of life compared with cash.""This is a very good combination. It  combines our knowledge of financial management, and telecom expertise of Telenor  and Shanghvi's business acumen. Shanghvi will be the single largest  shareholder," Rajiv Lall, vicechairman & MD-designate, IDFC Bank told ET.

Source : http://economictimes.indiatimes.com/

A Meeting of Postal Recreation Club of Phulbani was held on Date18.08.2015 in the campus of Phulbani HO.

The Following office bearers were unanimously elected :-

PRC Secretary  :- Com. Sunil Kumar Ratha,                         OA.DO.Phulabani

   Asst. Secreary   :- Com. Ajit Kumar Panda, PA. Phulbani HO
   Treasurer          :- Com. Kali Prasanna Hota, PA. Phulbani HO
   Asst. Treasurer:- Com.Malaya Mishra, PA. Phulbani HO

Organising  Secretary :- Com. Swarnamayee Subudhi OA. DO Phulbani
                                    :- Com. Manas Kumar Dutta, O/S Mail Phulbani
                                    :- Com. Budhadev Sahu, Postman Phulbani HO
                                    :- Com. Arun Kumar Sahoo, MTS O/o The SPOs Phulbani

The AIPEU POSTMEN & MTS, Phulbani Divisional Branch, Phulbani Heartily Congratulates All The Office Bearers on The said occasion  

Regards Secreatry, AIPEU, Postmen & MTS, Phulbani Divisional Branch, Phulbani

Seventh Pay Commission seeks one-month extension from finance ministry

Seventh Pay Commission seeks one-month extension from finance ministry

The panel headed by A.K. Mathur is unlikely to recommend lowering of the retirement age or push for lateral entry and performance-based pay

Finance minister Arun Jaitley. The Seventh Pay Commission was supposed to submit its report and recommendations to the finance ministry on 31 August. Photo: HT

New Delhi: The Seventh Pay Commission, headed by justice A.K. Mathur, has sought a one-month extension from the finance ministry and is preparing to submit its report by the end of September. The commission is unlikely to recommend the lowering of the retirement age as rumoured earlier or push for lateral entry and performance-based pay.

The commission, set up once in every 10 years to review pay, allowances and other benefits for central government employees, was appointed by the previous government on 28 February 2014 and was asked to submit its report in 18 months, which falls on 31 August.

“There are some data points that are missing, which we hope to get by this month end. We are trying to submit the report by 20 September,” an official of the commission said, speaking on condition of anonymity.

The Sixth Pay Commission had submitted its report a little ahead of its deadline on 24 March 2008. The revised pay scales were implemented retrospectively starting 1 January 2006, while recommendations relating to allowances were implemented prospectively.

The finance ministry apprehends that salary and pension expenditure will both rise by around 16% in 2016-17 as a result of the implementation of the Pay Commission recommendations. This may allow capital expenditure to grow by no more than 8% during the year, leaving little room to aggressively push for an infrastructure build-up.

“The Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will also be spanning out in this period. Thus, in the medium-term framework, the fiscal position will continue to be stressed,” the finance ministry said in the 2015-16 budget presented in February.

The official cited earlier said the Pay Commission report needs to be effective from 1 January 2016, or by April 2016 at the latest.

“It will be the government’s prerogative when to implement it. But beyond 1 January 2016, there will be arrears. But then, the government will be subject to criticism. Earlier, they had hidden behind Pay Commissions giving late reports,” he added.

However, the official said the commission is likely to maintain the status quo on the retirement age of central government employees, currently 60 years. “We are not going to either recommend lowering or raising the retirement age. If we lower the age limit, the pension burden will bust the government’s medium-term fiscal targets,” he added.

Asked whether government has sent any directives to the commission on the kind of hike it can afford, the official said the message it has got broadly is to keep the hikes low. “Merge the basic with dearness allowance, don’t stretch it beyond—that is the message. But that is a good message for the government to send. But there is no pressure otherwise. In fact, there is a lot of cooperation,” he said.

The official said merging basic pay with dearness allowance, which is mandatory, would itself mean a 155% rise for central government employees. “We have to decide how much to give above that. So, it will look good if you compare basic to basic,” he added.

On whether the commission will recommend performance-based pay bands, he said it will make some feasible recommendations, though he couldn’t guess if the government would accept them. The Sixth Pay Commission had also recommended performance-based pay revisions, but the government is yet to implement them.

“Eighty-eight percent of central government employees are industrial and non-industrial workers working with railways, post, paramilitary and army. So, performance-based pay revision is the wrong instrument for them. Biggest growth in government services is in paramilitary forces, where staffs in Central Reserve Police Force and Central Industrial Security Force have gone up by 75-80% in the last 10 years. By the time we have dealt with them, the bureaucracy is an afterthought. It does not affect anything,” he added.

D.K. Joshi, chief economist at rating agency Crisil Ltd, said the government is expected to be restrained in its pay hikes this time around, given the low inflation level and tepid growth momentum. “The last two Pay Commissions had significantly bumped up demand and fiscal deficit. But the government is unlikely to be populist this time. It has already showed restraint in the hike in minimum support prices for farmers,” he said.

However, Joshi said the Pay Commission will have a permanent income effect as well as a one-time impact through the payment of arrears, which will lead to increase in demand for consumer durables.

Source : http://www.livemint.com/