Pension contribution to be recovered at the rate of 14% of basic pay plus dearness allowance

ANALYSIS: NON-BPA ADMINISTRATIVE CIRCULAR

Document Type: Commissioner's Circular (Administrative / Accounts & Audit)

Subject Matter: Pension contribution recovery and supervision fee calculation for State Excise Department employees

IMPORTANT CLARIFICATION

This is NOT a Maharashtra Prohibition Act amendment gazette. This is an internal administrative circular from the Commissioner of State Excise to Divisional Deputy Commissioners regarding:

1. Pension contribution recovery at revised rates
2. Supervision fee calculations based on revised allowances
3. Employee salary component adjustments following 7th Pay Commission implementation

SUMMARY OF CIRCULAR

Circular Reference: Accounts Branch / Office Order No. 13 / Supervision Fee Recovery / 2, dated 31.12.2021

Issuing Authority: Commissioner of State Excise, Maharashtra State, Mumbai

Recipients: Divisional Deputy Commissioners of State Excise at Thane, Pune, Nashik, Aurangabad, Kolhapur, Nagpur

KEY POLICY CHANGES IMPLEMENTED

1. Dearness Allowance (DA) Revision:

• New Rate: 28% (previously 17%)
• Effective Date: 01.07.2021
• Basis: 7th Pay Commission revised pay structure
• Authority: Finance Department GR No. MBVA-2019/Pr.Kr.30/Seva-9, dated 07.10.2021

2. House Rent Allowance (HRA) Revision:

• X-Class Cities: 27% (previously 24%)
• Y-Class Cities: 18% (previously 16%)
• Z-Class Cities: 9% (previously 8%)
• Trigger: When DA exceeds 25%
• Effective Date: 01.01.2019
• Authority: Finance Department GR No. GHBHABH-2019/Pr.Kr.2/Seva-5, dated 05.02.2019

3. Pension Contribution (Employer's Share) Increase:

• New Rate: 14% of (Basic Pay + DA) [previously 10%]
• Applicability: Employees appointed on/after 01.11.2005 under Defined Contribution Pension Scheme / National Pension Scheme
• Effective Date: 01.04.2019 (with retrospective effect)
• Arrears Recovery: April 2019 to July 2019 arrears to be recovered in September 2019 salary
• Authority: Finance Department GR No. ANANIYO-2019/Pr.Kr.266/Seva-4, dated 19.08.2019

SUPERVISION FEE CALCULATION METHODOLOGY

The circular provides three detailed formats (Prapat 1, 2, 3) for calculating supervision fees for five employee categories across different city classifications:

Employee Categories Covered:

1. Deputy Superintendent (Pay Level L-15)
2. Inspector (Pay Level L-14)
3. Sub-Inspector (Pay Level L-12)
4. Assistant Sub-Inspector (Pay Level L-7)
5. Jawan (Pay Level L-6)

City Classifications:

X-Class Cities (Prapat-1):

• A-1 Class: Greater Mumbai cluster (Mumbai, Thane, Navi Mumbai, Kalyan-Dombivli, Ulhasnagar, Mira-Bhayandar, Ambarnath, Badlapur)
• A Class: Pune cluster (Pune city, Pimpri-Chinchwad, cantonment areas)
• HRA: 24% (now 27% post-revision)

Y-Class Cities (Prapat-2):

• A Class: Nagpur cluster
• B-1 Class: Nashik cluster
• B-2 Class: Aurangabad, Solapur, Kolhapur, Amravati, Bhiwandi, Vasai-Virar clusters
• K Class: Malegaon, Nanded-Waghala, Sangli clusters
• HRA: 16% (now 18% post-revision)

Z-Class Cities (Prapat-3):

• All other cities/towns not included in X or Y classification
• HRA: 8% (now 9% post-revision)

SALARY COMPONENTS INCLUDED IN SUPERVISION FEE

For each employee category, the circular calculates:

1. Revised Average Salary (2.57 multiplier from 5th to 7th Pay Commission)
2. Dearness Allowance (12% effective 01.01.2019; 28% effective 01.07.2021)
3. Urban Supplement Allowance (city-wise differentiation)
4. House Rent Allowance (24%/16%/8% initially; 27%/18%/9% post-revision)
5. Transport Allowance (₹1200 for Deputy Superintendent in A-1/A cities; ₹400 for others)
6. Washing Allowance (₹40-20)
7. Leave Salary Contribution (19% of Basic + DA)
8. Pension Contribution (14% of Basic + DA, effective 01.04.2019)

SAMPLE CALCULATION (Deputy Superintendent - X-Class Cities)

INCENTIVE ALLOWANCE SCHEDULE

The circular also includes a phased incentive allowance based on old basic pay scales:

Note: This incentive to continue at old basic pay rates until new GR is issued.

CIRCULATION LIST

The circular was forwarded to:

• Home Department (Revenue & Excise-1 and Finance-1 sections)
• Accountant General, Mumbai
• Deputy Commissioner (Inspection), State Excise
• Office Superintendent No. 7

PRACTICAL EFFECT

This circular does NOT amend any licensing fees or provisions of the Bombay Prohibition Act. Instead, it:

1. Adjusts internal accounting for supervision fees collected from license holders to cover salaries of excise enforcement staff
2. Implements 7th Pay Commission salary revisions with retrospective effect
3. Ensures pension contribution recovery reflects increased employer contribution rates
4. Provides standardized calculation formats for 6 divisional offices to ensure uniform fee recovery

The supervision fees calculated here are likely recovered from license holders as part of administrative costs, but this is a salary/accounts circular, not a statutory amendment under the Bombay Prohibition Act.