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S.ravi
Advanced Member
India
4205 Posts |
 Posted - 07/31/2008 : 19:40:49
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Salary revisions may take time
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30 July, 2008 04:15:46
BY MUKESH RANJAN
New Delhi
July 30: The hopes of millions of Central government employees, including those from defence and paramilitary forces, for early implementation of their long-pending wage revision are likely to be dashed, as the government is set to refer the Sixth Pay Commission report to the 13th Finance Commission for evaluation and possible impact on the fiscal health of the country.
Sources in the government confirmed that the pay commission report is going to be taken up by the Union Cabinet for consideration during its meeting on Thursday. But as the Cabinet notes suggest, the report is most likely to be referred to the 13th Finance Commission to asses the impact on government treasury, they added.
Interestingly, issues relating to oil bonds worth Rs 39.5 thousand crores and fertiliser subsidies worth about more than Rs 1 lakh crore are also slated to be referred to the Finance Commission.
These issues have been referred to the commission with a set of terms of reference, which include cost assessment in case of the Sixth Pay Commission report. While in case of oil and fertiliser subsidies, the commission has to decide how to stager in repayment and minimise the impact on government exchequer.
The Finance Commission is headed by Mr Vijay L. Kelkar, former Union finance secretary and adviser to the finance minister.
The other members include Ms Indira Rajaraman, emeritus professor, National Institute of Public Finance and Policy, Mr Abusaleh Shariff, chief economist, National Council of Applied Economic Research and Mr Atul Sarma, former vice-chancellor, Rajiv Gandhi University (formerly Arunachal University). Mr Sumit Bose is the secretary to the commission, while Mr B.K. Chaturvedi, member, Planning Commission, is a part-time member.
Incidentally, Prime Minister Manmohan Singh on Tuesday had a presentation session on the Sixth Pay Commission report with Cabinet Secretary K.M. Chandrashekhar.
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 07/31/2008 : 19:48:18
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Good politics does not always make good economics. The farm loan waiver and the Sixth Pay Commission payout will put a huge strain on the government's finances and as a result, the global rating agencies are now downgrading India.
Sitting inside his office in Singapore's central business district, Tahakira Ogawa - director of global agency Standard and Poors keeps one eye on India.
The deteriorating economic environment over the past few months has forced Ogawa to issue a warning that India may lose its investment grade rating and it may be downgraded to what is called the junk rating.
Rating agencies say the government pay panel payout, higher oil and fertiliser subsidies, farm loan waiver and cut in duties on petroleum products are all putting a strain on the government's finances.
"The policy to give farm loan waiver and some other policies due to election year have out a lot of strain on the government's finances and we are being forced to re-rate India," says Ogawa.
"We don't expect growth beyond 7-7.5 per cent as there is a lot of stress on the fiscal position," says Aninda Mitra, VP, Moody's.
Back home, even the RBI that has issued a clear warning that India's balance sheet is taking a beating due to high government spending and ballooning subsidies.
And now with major downgrade warnings kicking in North Block officials are working overtime to ensure that India does not to lose the hard earned investment rating it received only 18 months ago.
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/01/2008 : 21:05:39
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Fiscal deficit at 64.6% of Budget estimate
Our Bureau
New Delhi, July 31 The Centre’s fiscal deficit has touched Rs 86,126 crore in the first quarter ended June 30, 2008. This represented 64.6 per cent of the budget estimate of Rs 1,33,287 crore for 2008-09, according to the Controller General of Accounts (CGA).
Analysts and economists expect the government’s fiscal deficit during the current fiscal to exceed the budget estimate on account of additional expenditure arising from farm loan waiver scheme and implementation of the Sixth Pay Commission.
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/03/2008 : 19:20:46
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The Finance Ministry has welcomed the latest tightening of monetary policy and says it is a signal to banks for moderating credit growth, having regard to the need to moderate aggregate demand. Banks should be able to meet credit demands for productive sectors if loans are carefully appraised and credit is allocated prudently. Government expects all measures taken over the last two months including the Reserve Bank’s announcements on July 29 to help in moderating and containing inflation.
At the same time, RBI in its statement has also emphasized the importance of “close and careful” monitoring of fiscal developments in view of growing enhanced subsidy expenditures and off-budget liabilities (like bonds for oil companies), farmer loan waivers and salary revisions under the sixth pay commission report during the year. Increases in non-plan spending adds to demand pressures, apart from widening budget deficits. (Courtesy: Press Information Bureau)
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/06/2008 : 09:32:33
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August 05, 2008 03:13 IST
Last Updated: August 05, 2008 11:25 IST
The government may defer the implementation of the Sixth Pay Commission award by a year or even two to reduce the fiscal burden of the recommendations that proposed a 28 per cent across-the-board salary increase for an estimated 4.5 million central government employees.
The report of the commission headed by Justice BN Srikrishna was submitted to the government on March 24 this year, nearly a fortnight before its 18-month tenure was to end.
All about the 6th Pay Commission report
Senior government sources said that the government's current fiscal position may well see the arrear payments deferred to January 1, 2008, two years later than originally recommended. However, a relaxation may be granted to employees who have retired in the interim period.
Lower-level government staff in central government service, which comprises a large part of the employee base, may also get some relaxation, although it is not clear what it will be.
The panel had recommended implementing the revised pay scales from January 1, 2006. The new pay scales, if implemented as originally recommended, would have cost the exchequer Rs 7,975 crore (Rs 79.75 billion) in fiscal 2008-09. However, the one-time additional outgo on account of the retrospective revision of salaries is estimated to be at Rs 18,060 crore (Rs 180.60 billion). The arrears were to be given in instalments, which would have lessened the fiscal burden.
All about the 6th Pay Commission report
Before the report was submitted, finance ministry officials had said the impact of the recommendations would be within 0.4 per cent of Gross Domestic Product in 2008-09. Other experts have said the impact would not exceed 0.5 per cent of GDP, unlike the previous fifth Pay Commission award when the impact was much higher.
In Budget 2008-09, the finance ministry has estimated the fiscal deficit at 2.5 per cent of GDP, which is in line with the Fiscal Responsibility and Budget Management Act, 2003. This included headroom for the likely impact of the Pay Commission award. However, subsequent developments have led to the fear that the Centre's fiscal position may have taken a beating during the year on account of the farm loan relief package and higher crude oil prices leading to an increase in the subsidy burden.
In fact, risk rating agency Moody's today forecast a deterioration of central government finances and pointed out that the central government's true borrowing need - which equals the reported fiscal deficit plus off-Budget borrowing - could reach 10 per cent of GDP, up from 8 per cent projected earlier this fiscal if global crude oil prices average $110/120 a barrel in 2008-09 and domestic retail fuel prices are not raised further.
Soon after the report was published, the defence services had opposed its recommendations on the grounds that it gave short-shrift to their demands. The matter was referred to a committee of secretaries. It is believed that the issue has been discussed and a final proposal may be put up for Cabinet consideration, officials said.
They added that a final decision could be taken as early as next month, well before six states head for elections to their legislatures. Of these, the Congress-ruled Delhi is crucial, being home to a large percentage of the country's central government employees.
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/09/2008 : 10:10:09
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TN police officials submit memorandum to Chidambaram
Chennai (PTI): A team of police officials led by Chennai City Police Commissioner R Sekar and suburban Commissioner S R Jangid, on Saturday met Union Finance Minister P Chidambaram and submitted a petition on the Sixth Pay Commission, seeking pay parity between IPS and IAS officers. The officers met the Finance Minister at the airport while he was waiting to board a New Delhi-bound flight, after coming from Madurai.
While Chidambaram acknowledged that he had received the petition from the officials, he, however, did not disclose the contents of the petition.
However, a member of the delegation said that they had stressed for treating IPS officers on par with IAS officers regarding wages.
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/12/2008 : 19:27:21
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PM to chair meeting on armed forces’ pay package
Aug 12th, 2008 | By Sindh Today | Category: India
New Delhi, Aug 12 (IANS) Prime Minister Manmohan Singh will chair a high-level meeting here Wednesday to take a final decision on increasing salaries and perks for armed forces personnel following their dissatisfaction over the Sixth Pay Commission report, an official said.
‘The meeting will finalise a notification on this and the prime minister will later announce it during his address to the nation on Independence Day (Aug 15),’ the official told IANS.
Defence Minister A.K. Antony, Finance Minister P. Chidambaram and Cabinet Secretary K. Chandrashekhar will be among those who will attend the meeting.
Resentment has been brewing in the armed forces ever since the pay commission submitted its report May 24, with what was initially seen as a 40 percent hike in salaries being whittled down to 20 percent after taxes.
The armed forces submitted a joint memorandum on this to Antony, who promised them a fair deal. The three service chiefs also met the minister on a number of occasions to press for improvements in the pay commission’s recommendations.
The service chiefs are unhappy with the commission’s recommendations on several counts, sources say.
Firstly, they feel that their demand for parity with civilian employees has not been addressed. They are also not happy with the military service pay that has been recommended in a bid to reduce this disparity, the sources said.
Then, the service chiefs believe that after taking into account taxes and other deductions, the wage hike in real terms would amount to only 20 percent.
Besides, the service chiefs contend that personnel below officer rank (PBOR) have received a raw deal in the commission’s recommendations, the sources said.
An umbrella organisation of military veterans even wanted to organise a silent protest at the India Gate memorial to the Unknown Soldier but was prohibited from doing so.
The veterans were upset that the pay commission report did not adequately address their concerns.
The defence forces apart, the widespread anger among the government’s civilian employees prompted the appointment of a committee under the cabinet secretary to study the issue.
The recommendations for the 1.2 million defence personnel, in their present form, will entail an additional annual expenditure of Rs.63.86 billion ($1.5 billion).
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/13/2008 : 10:20:25
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Government to approve pay panel report tomorrow
Press Trust Of India / New Delhi August 13, 2008, 19:45 IST
Civil servants, armed forces and paramilitary personnel will get to rejoice this Independence Day with the government all set to approve the Sixth Pay Commission report in its Cabinet meeting tomorrow.
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Prime Minister Manmohan Singh today chaired a meeting attended by External Affairs Minister Pranab Mukherjee, Defence Minister A K Antony and Finance Minister P Chidambaram and discussed the pay commission report and the recommendations of the empowered committee of Secretaries that went into the anomalies.
"The Cabinet is likely to take up the sixth pay panel report for approval tomorrow and the matter was discussed at a meeting chaired by the PM today," official sources said.
Though the sources refused to share details of the meeting or the amendment to the pay panel report submitted by its chairperson Justice Sri Krishna earlier this year, the increase over the commission's recommendations are likely to be the tune of 1.83 times of the net pay for the armed forces personnel and a substantial raise for civil servants too.
The pay commission had originally recommended that the pay for the armed forces be hiked by 1.74 times, calculated on the basis of the inflationary factors.
When the Sixth Pay Commission had submitted its report, armed forces personnel had expressed their resentment, openly that also led to protest rallies by retired personnel, demanding a better deal considering the hardship factor involved in their services.
The tri-services top bosses too had done some hard lobbying with the Defence Minister, who in turn had batted on behalf of the armed forces with the Finance Ministry.
The government then set up a high-powered committee headed by Cabinet Secretary K M Chandrasekhar to look into the anomalies pointed out by different sections of the government servants, including those from the defence services.
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/13/2008 : 19:29:21
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Cabinet may approve Pay Panel proposals
NDTV Correspondent
Wednesday, August 13, 2008, (New Delhi)
Prime Minister Dr Manmohan Singh held a closed meet with his senior Cabinet colleagues on Wednesday regarding the pay commission recommendations.
It is learnt that the Cabinet is all set to clear the Sixth Pay Commission recommendations on Thursday. The Prime Minister will announce details during his independence day speech.
About 5.4 million government employees will get their pay hikes and the government will have to shell out an extra Rs 20,000 crore.
The armed forces were unhappy with the pay hikes but now sources say a compromise has been reached between the government and the services.
The government has accepted the demands of the defence forces. But it's a bit less than the 15% extra they had demanded. So, if in April the promised hike for a colonel was 15 thousand rupees, now it's going to be about 19 thousand.
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/14/2008 : 13:20:12
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Implementation of the recommendations of Sixth Central Pay Commission
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13:58 IST
The Union Cabinet today gave its approval for implementation of the recommendations of the Sixth Central Pay Commission. The revised pay scales will come into effect from 1/1/2006 and revised rates of allowances from 1/9/2008. The Cabinet has also decided that arrears will be paid in cash in two instalments – first instalment of 40% during the current year (2008-09) and the remaining 60% in the next financial year (2009-10).
2. The Cabinet has broadly accepted the recommendations of Sixth CPC with some modifications in the wake of representations received from various sections/Associations of Central Government employees. The new system of four Pay Bands with 20 Grade Pays recommended by the Commission has been accepted with some minor modifications.
3. The minimum Basic Pay for a Government servant has been increased to Rs.7000 from Rs.6660 recommended by the Sixth CPC. Consequently, the total emoluments of an employee at the lowest level will exceed Rs.10,000 p.m., including allowances.
4. The other highlights of the Cabinet decision covering all Government employees including the Defence Forces are:-
(i) Enhancement in the fitment in revised pay bands, which was recommended by the Sixth CPC to be based on multiplication factor of 1.74 to 1.86. This would result in increased emoluments for Government employees.
(ii) Increase in the rate of annual increment from 2.5% to 3%.
(iii) Removal of Campus restriction for grant of Transport Allowance.
(iv) Increase in Transport Allowance at the lowest level to Rs.600 (from Rs.400 in A-1/A class cities recommended by the Sixth CPC) and Rs.400 (from Rs.300 in other cities recommended by the Sixth CPC).
(v) At least three promotions have been assured for all Defence Forces’ personnel and civilian employees under the modified Assured Career Progression (ACP) Scheme. While the civilians would get it after 10, 20 and 30 years of service, the Defence Forces Jawans would get ACP in 8, 16 and 24 years.
5. For the Armed Forces personnel, the Commission, for the first time recommended a Military Service Pay (MSP). The Cabinet has increased the rate of MSP for PBORs to Rs.2000 from Rs.1000 recommended by the Commission. The Officers of the Defence Forces would get an MSP of Rs.6000 over and above their Pay.
6. The middle level officers of the Defence Forces namely Colonels and Brigadiers have been placed in the highest Pay Band of PB-4.
7. Senior Lt. Generals overlooked for promotion as Army Commanders due to lack of residual service would now get the grade of Army Commander (Secretary’s grade). In the case of existing Major Generals/Lt. Generals, MSP will be taken into account notionally for fixation of pay on 1/1/2006.
8. As replacement of the pay scale of Rs.24050-26000, a separate pay scale has been carved for DGPs, PCCFs, GM (Railways), members of the Boards of Income Tax, Customs & Central Excise, Postal and Ordnance Factories, among others, who were in this pre-revised scale. This would take them to the level of Rs.80000 in two years as against three years in the pre-revised scale.
9. Further, the IPS Pay Rules and the Indian Forest Service Pay Rules will be appropriately modified to provide in each State cadre one post of DGP and one post of PCCF at the apex level of Rs.80000 for heading their respective Forces.
10. Middle level Police and Civilian officers i.e. DIGs, Conservator of Forests, Scientists E & F, Superintending Engineers, Directors, Additional Commissioners of Income Tax and Central Excise and posts in equivalent grades have also been placed in PB-4.
11. Other salient decisions taken by the Cabinet are:-
(i) The lower limits of Disability Pension for Defence personnel to be doubled from Rs.1550 to Rs.3100. War Disability Pension to be granted at 60%;
(ii) The rates of Special Forces Allowance for Army and Air Force to be equated with navy’s Marine Commando Allowance;
(iii) For the officers of Central Para Military Forces, all the posts of Additional DIG upgraded to DIG level by the Pay Commission to continue to be manned by the cadre officers of CPMFs;
(iv) For the Railway employees who are in receipt of Running Allowance, this allowance will be taken into account while fixing their pay in revised pay bands;
(v) Government has continued the present position of granting Group A scale to Group B officers after 4 years of service and these officers would be placed in PB-3 instead of PB-2 recommended by the Sixth CPC. This would benefit Group B officers of the Railways, Accounts Services, CSS, CSSS and DANICS & DANIPS.
(vi) For Doctors, the Cabinet has approved promotions under the Dynamic ACP Scheme upto Senior Administrative Grade (Joint Secretary level) for Doctors with 20 years of service. Counting of Dearness Allowance (DA) on Non-Practicing Allowance (NPA) as on 01.01.2006 for fixing their pay in revised pay bands has also been approved;
(vii) For the scientists, continuation of the existing system of grant of Special Pay of Rs.2000 p.m. to Scientists G on promotion and doubling of the amount to Rs.4000 p.m. in Departments of Space and Atomic Energy and Defence Research & Development Organisation (DRDO) has been recommended.
12. The financial implications in 2008-09 on account of the implementation of the recommendations of the Sixth Central Pay Commission as modified by the Cabinet will be around Rs.15700 crore on the Central Budget and Rs.6400 crore on the Railway Budget.
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AD/LV/CS
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/14/2008 : 13:32:11
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Govt's I-Day bonanza for civil, defence staff
AgenciesPosted online: Thursday, August 14, 2008 at 1546 hrs Print Email
New Delhi, August 14:: Offering a bonanza to its about 55 lakh employees, the government on Thursday approved new pay scales that would give them an average increase of 21 per cent, a move that would cost the exchequer Rs 22,131 crore.
Pay Wage
Financial Budget
The windfall pay revision, announced on the eve of the country's 62nd Independence Day, would be implemented from September 1, this year and the government employees would get 32 months' arrears, that too with significant improvements over the Sixth Pay Commission recommendations.
The Union Cabinet approved the effective date for the pay revision as January 1, 2006 and central government employees and armed forces personnel would get 40 per cent of the arrears this fiscal and the remaining 60 per cent next fiscal.
Finance Minister P Chidambaram said the impact of revised pay scales on inflation was taken into account when the government cleared the recommendations and the Budget deficit targets would also be adhered to.
Both the Union Budget and Railway Budget have a capacity to bear the burden on account of implementation of revised pay scale for central government employees, he told reporters after the Cabinet meeting.
He said the burden on Union Budget will be Rs 15,717 crore and Rs 6,414 crore on Railway budget for 2008-09.
Following the revision of pay scales, total emoluments of a government employee including allowances at the lowest level will exceed Rs 10,000 per month.
Government has also fixed the annual increment for employees at 3 per cent, up from 2.5 per cent recommended by the Commission, which had submitted its report in March.
While modifying the recommendations, the government has accepted the suggestion of the pay panel for four pay bands with 20 grade pays.
"The overall average increase is 21 per cent," Expenditure Secretary Sushma Nath said. The fitment rate will be 40 per cent as against 28 per cent recommended by the Sixth Pay Commission.
The government's present salary bill is over Rs 70,000 crore and the pension bill is over Rs 30,000 crore.
At least three promotions have been assured for all defence forces' personnel and civilian employees under the modified Assured Career Progression (ACP) scheme. While the civilians would get it after 10, 20 and 30 years of service, the defence forces' jawans would get ACP in 8, 16 and 24 years.
The Commission, for the first time, recommended Military Service Pay (MSP) for armed forces personnel. The Cabinet has increased the rate of MSP for PBORs to Rs 2000 from Rs 1000.
Officers of the defence forces would get an MSP of Rs 6,000 over and above their pay per month.
Middle level officers of the defence forces namely colonels and brigadiers have been placed in the highest pay band of PB-4. Senior Lt.Generals overlooked for promotions as Army Commanders due to lack of residual service would now get the grade of Army Commander (Secretary's Grade), an official statement said.
In the case of Major Generals/Lt Generals, MSP will be taken into account notionally for fixation of pay as on January 1, 2006.
Other decisions taken by the Cabinet with regard to the pay scale includes the doubling of lowest limit of disability pension for defence personnel to Rs 3100 a month.
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Edited by - S.ravi on 08/14/2008 13:36:47 |
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/14/2008 : 13:41:50
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A wage hike higher than those recommended by the Sixth Pay Commission, marginal increase in annual increments and the payment of arrears in cash are some of the sweeteners incorporated in the proposal for Thursday's Cabinet meeting after Prime Minister Manmohan Singh’s intervention
The new pay package for the 55 lakh Central government employees, to be announced on August 15, proposes a 20 per cent raise over the pay bands suggested by the Commission. The panel in May suggested a gross 40 per cent hike, which means an effective 25 per cent after taxes. “The net jump in pay would be upwards of 30 per cent with the additional increase more for lower grade staff to narrow their difference with the (pay of) senior officials,” said sources.
This raise takes into account the Commission’s miscalculation of the dearness allowance - absorbed in the new basic pay—as 74 per cent whereas it should have been 83 per cent, they said. The proposed annual increment in the basic pay would also be a tad higher than the 2.5 per cent suggested by the Commission.
The Cabinet proposal talks of a uniform 3 per cent raise every year. The current norm is a Rs 500-increase in the basic pay annually within the grade scale.
But what would be music to the bureaucrats’ ears is that the PM has shot down Finance Minister P Chidambaram’s suggestion that the new wage be effective from January 2007 instead of January 2006 because of the heavy run on this year’s Budget. Chidambaram had also wanted that the past dues be parked in the General Provident Fund to be provided as pension after retirement of the employees so that this year’s outgo from the Budget would be limited to Rs 12,500 crore.
But the PM would have none of that. He has ensured that the new pay would be effective from January 2006, as recommended by the Commission, with 40 per cent of the arrears paid in the current fiscal and the remaining 60 per cent next year.
The actual pay-out would come in November after the monsoon session of Parliament in September passes the Finance Ministry’s supplementary Demand For Grant to fund the wage bill, said sources.
What has also been shot down, though by the Committee of Secretaries, is the inclusion of heads of other services in the rank of Cabinet Secretary. The CS will remain primus inter pares, the first among equals, and that position would not be granted to the head of Intelligence Bureau, the three service chiefs or the Chairman Railway Board—as had been demanded.
There would also be no scrapping of Group D personnel (peons in ministries and coolies in Indian Railways). The Commission had suggested that these posts be subsumed in Group C of clerks, fresh induction be stopped and jobs be outsourced.
As for the armed forces, the good news is that military service pay for persons below the officer rank (POBR) would be Rs 2,000 per month. The forces had demanded Rs 3,000 as against Rs 1,000 introduced by the commission.
There would also be a significant improvement in the salaries of Brigadiers as the government has agreed to put them in Pay Band 4 (Rs 39,200-67,000) as against the suggested pay band 3 (Rs 15,600 - 39,100).
For the Indian Police Service and Indian Forest Service, relief would come in the form of abolition of the Deputy Inspector General scale. There would also be no discrimination between Group B and Group A service officers in the form of a differential basic pay at the time of joining, as suggested by the Commission. They would both start at the same scale, as is prevalent now, said sources.
Key Points :
A 20 % raise over the pay bands suggested by the Commission
Uniform 3% raise in basic pay every year. The norm is a Rs 500-increase annually within grade scale
New wages to be effective from January 2006
No Cabinet Secretary rank for Intelligence Bureau chief, the three Service chiefs or the Chairman, Railway Board
Group D personnel to stay (peons in ministries and porters in Railways)
Military service pay for persons below the officer rank (POBR) would be Rs 2,000 per month
Significant hike in salaries of Brigadiers: they move to Pay Band 4 (Rs 39,200-67,000) from the suggested Pay Band 3 (Rs 15,600-39,100)
DIG-scale abolished in IPS and Indian Forest Service
(Indian Express 14/08/08 Delhi Edition)
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/15/2008 : 08:25:20
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Finance Minister P Chidambaram said the impact of revised pay scales on inflation was taken into account when the government cleared the recommendations and the Budget deficit targets would also be adhered to.
Both the Union Budget and Railway Budget have a capacity to bear the burden on account of implementation of revised pay scale for central government employees, he told reporters after the Cabinet meeting.
The government has also fixed the annual increment for employees at 3 per cent, up from from 2.5 per cent recommended by the Commission, which had submitted its report in March.
While modifying the recommendations, the government has accepted the suggestion of the pay panel for four pay bands with 20 grade pays.
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/15/2008 : 08:52:32
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The Pay Scale of Rs. 24050-26000 has been dissolved and created a separated pay scale for DGPs, PCCFs and GM (Railways). The members of board of income tax, Customs and Central Excise, Postal and Ordinance Factories, who were earlier in dissolved pre-revised scale would now touch the level of Rs.80,000 per month in just two years as against earlier three years.
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S.ravi
Advanced Member
India
4205 Posts |
Posted - 08/15/2008 : 09:10:45
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Sixth Pay Commission expected pay scales
Sixth Pay Commission update
Sixth Pay Commission - Pay Scales Released
6th Pay Commission delayed till 2010?
culture
Posted by Irus Extremus on August 14, 2008
Today the Cabinet ratified the recommendations of the Sixth Central Pay Commission with minor modifications. The jump in pay is expected to be upwards of 30 per cent after taxes. The system of four Pay Bands with 20 Grade Pays recommended by the commission has been accepted.
The median salary for central government employees in India currently stands at Rs 250,092 per annum, while that of private sector companies at Rs 408,605. It is expected that the figure for government employees will rise to Rs 352,611 — which would leave a small gap of Rs 50,000 compared to the private sector.
However, as in the past, post pay commission most private sector companies revise their pay scales upwards which further increases this ever widening gap.
So far the highlights of the report are
Minimum basic Salary - Rs. 7000
New allowances to be effective from 1st September 2008
IRS officers demand to be considered a superior service to IAS and IPS rejected
Education Allowances for employees for upto two children - Rs. 1,000 (Earlier, it was Rs. 100)
Maximum Basic Salary - Rs. 90,000 (Cabinet Secretary)
National Holidays - 3
Gazette Holidays to be canceled
Pay hike will be implemented from January 01, 2006
Maternity Leave : 6 Months
HRA in A-1 Cities - 30% (Unchanged)
HRA in A, B, B-1 Cities - 20%
Incentive Schemes to be announced
New Medical Insurance Scheme to be launched for government employees
Market-driven pay for scientists and all other jobs that require professional skill set.
Total number of salary grades to be reduced from 35 to 20.
The wage hike would increase the financial implication for the Centre by Rs 17,798 crore annually and the arrears with effect from January 2006 would cost Rs 29,373 crore, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.
The government increased the minimum entry level salary of a government employee to Rs 7,000 against Rs 6,660 recommended by the Commission headed by Justice B N Srikrishna who submitted the report in March this year.
Consequently, it would push up the total emoluments of an employee at the lowest level beyond Rs 10,000 per month including allowances.
It also increased the rate of annual increment from 2.5 per cent to 3 per cent.
In the defense sector, it approved at least three assured promotions for all defense forces personnel and civilian employees under the modified Assured Career Progression scheme.
While civilians would get this after 10, 20 and 30 years of service, defence forces jawans would be promoted under ACP after 8, 16 and 24 years.
The hiked salary would be given to the employees beginning September this year and the arrears from January 2006 would be given in cash in two installments - 40 per cent this fiscal and 60 per cent in 2009-10.
The financial implication of Pay Commission on the General Budget would be Rs 15,717 crore and Rs 6414 crore on Railway Budget in 2008-09.
The government’s present salary bill is over Rs 70,000 crore and the pension bill is over Rs 30,000 crore.
Finance Minister P Chidambaram said the budget deficit target would be adhered to, despite the implementation of the Pay Commission recommendations.
The government for the first time approved Military Service Pay for armed forces personnel, under which officers would get Rs 6,000 over and above their pay per month.
The lowest limit of disability pension for defence personnel would be doubled to Rs 3100 a month.
No Cabinet Secretary rank for Intelligence Bureau chief, the three Service chiefs or the Chairman, Railway Board
Group D personnel to stay (peons in ministries and porters in Railways)
Military service pay for persons below the officer rank (POBR) would be Rs 2,000 per month
DIG-scale abolished in IPS and Indian Forest Service
The salaries of Brigadiers will be in Pay Band 4 (Rs 39,200-67,000) as against the suggested pay band 3 (Rs 15,600 - 39,100) previously.
It is expected that the actual pay-out would come in November after the monsoon session of Parliament in September passes the Finance Ministry’s supplementary Demand For Grant to fund the wage bill.
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pay commission’s
