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S.ravi
Advanced Member

India
4205 Posts |
Posted - 08/31/2008 : 19:38:35
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Pay panel revises education allowance
New Delhi: The modified recommendations of the Sixth Central Pay Commission, notified by the government on Friday, also ensures a rise in the children education allowance besides an increase by 21 per cent on an average in the salaries of the government employees.
Retrospective effect
The revised salaries will reflect in next month’s pay though the report is to be implemented with retrospective effect from January 1, 2006.
The arrears would be given in cash – 40 per cent this financial year and 60 per cent in the next fiscal.
Reimbursement
According to the notification, children education allowance will be reimbursed up to maximum Rs.1,000 per child per month subject to a maximum of two children from the present Rs. 50 per child.
Hostel subsidy
Besides, hostel subsidy has been raised to the maximum limit of Rs. 3,000 per month per child from Rs. 300 currently.
Also, these reimbursements would be automatically raised by 25 per cent once dearness allowance on the revised pay bands become 50 per cent of the basic salary, the notification said.
As such, an Remployee getting Rs. 1,000 would get Rs
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 08/31/2008 : 19:58:40
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| Finance Ministry has notified the Sixth Pay Commission Award. It has come out with recommendations on the implementation of revised pay scales from January 1 2006. It introduces running pay bands for all government posts in scales of Rs 26,000. It proposed a distinct grade pay for all posts barring the Cabinet Secretary. It also proposed performance related incentive to replace ad hoc bonus and that most allowance rates be doubled for defence and civilian staff. Military services pay for ranks up to brigadier or equivalent is at Rs 6,000 per month |
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/01/2008 : 12:09:11
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There will be a uniform date of annual increment, viz. 1st July of every year. Employees completing 6 months and above in the revised pay structure as on 1st of July will be eligible to be granted the increment. The first increment after fixation of pay on 1.1.2006 in the revised pay structure will be granted on 1.7.2006 for those employees for whom the date of next increment was between 1st July, 2006 to 1st Jan 2007.
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/01/2008 : 12:15:28
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Sixth Central Pay Commission Implementation New
Office Memorandum/Allowances related to Sixth Central Pay Commission Recommendations: » Decision of Government relating to grant of Dearness Allowances to Central Government Servant - Revised rates effective from 1.1.2006, 1.7.2006, 1.1.2007, 1.1.2008 and 1.7.2008 » Special (Duty) Allowances for Civilian Employees of the Central Government serving in the North Eastern Region (including Sikkim) and Ladakh » Construction Projects-Grant of Project Allowance-Revision of rates » Bad Climate Allowance » Grant of House Rent Allowance (HRA) and Compensatory (City) Allowance (CCA) » Special Compensatory (Hill Area) Allowance » Grant of Split Duty Allowance to Sweepers and Farashes in Central Secretariat and Allied Offices » Grant of Transport Allowance to Central Government employees » Grant of Hard Area Allowance to the Central Government employees posted in the Nicobar group of Islands and Minicoy in Lakshadweep Islands » Island Special (Duty) Allowance for Civilian Employees of the Central Government serving in the Andaman & Nicobar & Lakshadweep group of Islands » Discontinuation of Border Area Allowance to the Central Government employees serving on the International Border of Rajasthan Scheduled/Tribal Area Allowance » Revision in the rates of Cycle (maintenance) Allowance under SR-25 » Special Compensatory (Remote Locality) Allowance
Implementation New http://finmin.nic.in/6cpc/order_6cpc.html http://pensionersportal.gov.in/sixthcpc/pensiontable_sixthpc.pdf
Office Memorandum/Allowances related to Sixth Central Pay Commission Recommendations:
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Edited by - S.ravi on 09/01/2008 12:33:18 |
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/01/2008 : 19:51:56
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Tamil Nadu
Salaries raised, but still lagging behind
Priscilla Jebaraj
Pay commission hikes earnings, but inflation means little rise in real incomes
Photo: M. Vedhan Done for the day Secretariat staff leaving for home at the end of the day, in Chennai. Inflation is bound to eat into their incomes.
It is the best of times and the worst of times for government employees. They have the crucial job security needed to last out the storm of rising prices. However, when it comes to inflation, they don’t have the weapons at the disposal of private sector employees — bargaining for promotions or pay hikes, job hopping in favour of a better salary.
“A tahsildar has as much responsibility as any corporate executive. His job profile would daunt even an MBA graduate. And still he only gets Rs. 6,500 per month (basic), and he can’t bargain for more. How can he hope to handle inflation?” asks Amudha Krishnan*, a senior official in the Commerce department who did not wish her real name to be used like most of those quoted in this article.
“What an entry-level marketing executive gets will be what a joint secretary gets after 20 years of service. Even at Cabinet Secretary level, officers were getting less than Rs. 30,000.”
The government has attempted to correct the skewed salaries by approving the Sixth Pay Commission’s recommendations which promises hikes of at least 21 per cent. The Cabinet Secretary’s salary has tripled, for example. However, many are not very impressed with their Independence Day gift.
“Prices have shot up over the last three months. But the Pay Commission made its decisions long before that,” points out S. Anandan*, who works as an Inspector with the Railways. He expects a 40 per cent increase in gross pay, but says most of it will be eaten up by daily expenses. Economists say there is no way the Pay Commission could have anticipated the spurt in rising prices. “At best, the Commission report would have taken into account the situation till 2006. You must remember that the experience of the first half of the decade was an inflation rate of 5 per cent and that was also the target rate…In essence, the report is already dated,” says D. K. Srivastava, director of the Madras School of Economics.
Allowances
“Neither the pre-revision allowances, nor post-revision allowances reflect the price rise,” says Ms. Krishnan. She points out that the revised transport allowance is about three per cent of basic pay. “For a mid-level official getting about Rs. 25,000, that would mean an allowance of Rs. 800 per month. How is that reasonable when petrol is Rs. 55 per litre?” asks Ms. Krishnan.
She adds that the Pay Commission’s ceiling for house rent allowance even for top officials is only Rs. 10,000 per month. “For those without government quarters, is that reasonable in today’s context? Do they expect all of us to live in the suburbs?”
That is exactly what is happening, according to D.B. Immanuel, who works as a manager with the public sector dairy enterprise Aavin. “Many of my colleagues have been forced to shift out of the city, but now their transport costs have gone up, because petrol prices have shot up,” he says.
His wife, Jebaseeli, a government nurse, is not sure that is enough. “What is the use of job security when inflation is so high? We hardly have any savings for emergencies. It’s a hand to mouth existence,” she complains. During her husband’s hospitalization in March, they were forced to pay bills with a loan as his public sector employer did not provide health coverage.
Apart from health, education is a big concern for most families. In this regard, most government employees welcome the increase from Rs. 50 to Rs. 1,000 per child per month. “This is more realistic. The average schools charge that amount for monthly fees, although it does not take care of admission fees,” says D. Ranjini*, a mid-level official with the state government whose daughter has just entered LKG.
Mid-level officials get the least benefit from the new recommendations, according to Dr. Srivastava. Peons, attenders, sweepers and drivers, who fall in the lowest of the four basic pay bands, will see a tripling of basic pay in many cases. Most of them, along with government teachers, get a better deal than their private sector counterparts, not only in terms of salary, but also stability, leave and working hours and conditions.
Those in the highest pay band, from joint secretaries and above, have also been given a substantial hike, although their salaries will still not compare with their private sector counterparts. It is mid-level employees, especially those in Pay Band III who get the bottom half of the averages. “Most of these are young IAS officers in their early postings. This is the time their creativity and contribution is highest, but they get the worst rewards,” says Ms. Krishnan.
The clerical cadre are worst affected, according to P. Rajalakshmi*, a clerk with the Railways. “At least the officers are assured of a higher grade pay and their promotion pay within four years. But only a percentage of the clerical cadre will be part of the modified assured career progression programme. At least 60 per cent of clerical staff will continue to be stuck in their old pay bands,” she says.
Dr. Srivastava says the government’s lack of flexibility is its biggest handicap in making competitive personnel policies in a time of rising prices. “Private sector policies are variable and linked to price movement. The government will also experience a positive impact in terms of higher tax revenues, but that cannot be quickly translated into salary hikes,” he says.
*Names changed
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/02/2008 : 12:39:31
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Forces "unwilling" to implement 6th Pay Commission report New Delhi (PTI): The Armed Forces have communicated to Defence Minister A K Antony that they were "unwilling to implement" the Sixth Central Pay Commission (CPC) report without "anomalies" being removed to restore their status and parity of pay scales.
"A high level delegation from the Chiefs of Staff Committee (COSC) made a presentation to Defence Minister A K Antony and top officials on anomalies, as introduced in the notified CPC report for officers, though it expressed satisfaction over the pay hikes for personnel below officer rank," Defence Ministry's top sources said here on Tuesday.
After witnessing the presentation, Antony was quoted as assuring the Armed Forces that he would take up "the anomalies" with the government and get them addressed, sources said.
The presentation comes in the wake of Chairman of COSC and Navy chief Admiral Sureesh Mehta meeting Antony on Friday evening just hours before the CPC report was notified seeking to stop the government order as "the anomalies" were not removed.
When Mehta was on a visit to Japan and South Korea early last week, then acting Chairman of COSC and IAF chief Air Chief Marshal Fali Homi Major had written to Antony pointing out that the extant parities of Lieutenant Colonels and their equivalents in the Navy and Air Force were lowered by retaining them in Pay Band-3, while raising similarly placed civilian and paramilitary officers to Pay Band-4.
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S.ravi
Advanced Member

India
4205 Posts |
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/03/2008 : 10:22:15
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Govt to levy income-tax on 40 per cent pay arrears this year New Delhi, Sep 3 (PTI) Government today said it would tax only 40 per cent of salary arrears to be paid to central government employees in the current fiscal on implementation of Sixth Pay Commission recommendations. Generally speaking income earned in a year is taxed in that particular year, official sources said.
A section of the media today reported that the entire amount of arrears would attract tax this fiscal.
As per the notification issued by the government last month, central government employees will get 40 per cent of arrears during the current financial year and the remaining amount in the next financial year.
Government instructions issued on August 30, 2008, regarding fixation of pay and payment arrears consequent to implementation of the Sixth Central Pay Commission recommendations clearly states that in authorising the arrears income tax as due may also be deducted and credited to the government.
The arrears with effect from January 2006 would cost Rs 29,373 crore. Of the arrears, 40 per cent would be paid during the current year to the 50 lakh employees of the central government.
The revised pay scales will add Rs 4,500-5,500 crore to the government exchequer this fiscal in the form of personal income tax.
Besides, some money would also come through indirect taxes as some of the increased pay would go into buying products and services, official sources said here. PTI
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/03/2008 : 10:25:18
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Govt promises to look into armed forces' pay panel grievances 3 Sep 2008, 0402 hrs IST,TNN NEW DELHI: Rattled by the stand of the armed forces that implementation of the Sixth Pay Commission for them be “withheld” till their parity with civilian and paramilitary counterparts is restored, the government has promised to look into the issue on “a fast-track basis”.
As reported by TOI earlier, simmering anger in the armed forces against the Centre for notifying the Sixth Pay Commission report has now erupted over the “raw deal” given to Lt-Colonels and their equivalent ranks in IAF (Wing Commander) and Navy (Commander), who form the “bulk” of the officer cadre in Army, Navy and IAF.
After a presentation to Defence Minister A K Antony by the chiefs of staff committee, the armed forces also briefed top ministry officials on Tuesday about the “extant parity”of Lt-Col rank officers being lowered by retaining them in Pay Band-3 (Rs 15,600-39,100), while raising similarly placed civilians and paramilitary officers to PB-4 (Rs 37,400-67,000).
“This is simply not acceptable. If the government wants it can go ahead with implementation of the pay commission for other ranks but it should not happen for officers till the anomalies are sorted out,” said a top officer.
After all, of the 54,770 officers in the 13-lakh strong armed forces, almost 19,000 are Lt-Cols. These include 11,187 in the Army, 4,216 in IAF and 3,528 in Navy.
This “big bulge” has come about due to implementation of Phase-I of the Ajai Vikram Singh (AVS) Committee report in December 2004 -- which was basically aimed at arresting “the greying profile” of operational commanders through faster promotions -- without concomitant increase in ranks in the upper echelons.
As reported earlier, the government is now on the verge of clearing implementation of AVS report Phase-II, which will create 140 new posts of two and three-star generals and another 1,022 posts for Brigadier and Colonel rank officers in the three Services.
The forces are also angry at the pay commission notification which places all director-generals of police and their equivalents over Lt-Generals by the creation of a new “higher administrative grade-plus”.
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/03/2008 : 19:59:01
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Government instructions issued on August 30, 2008, regarding fixation of pay and payment arrears consequent to implementation of the Sixth Central Pay Commission recommendations clearly states that in authorising the arrears income tax as due may also be deducted and credited to the government.
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/04/2008 : 08:41:55
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Thursday, September 4, 2008 Govt puts payout of arrears on fast track 17 comments at 8:20 AM To expedite the payment of salary arrears to lakhs of its employees after implementation of the Sixth Pay Commission's report, the government has waived any “pre-check” of the claims they would be submitting.
This has been done to ensure that arrears are cleared at the earliest when the salary for September is paid to employees on the last working day of the month.
The employees would, however, be required to furnish an undertaking so that the government can later deduct any excess payment made to them due to any miscalculation.
Usually, the drawing and disbursement officer in a government office is supposed to verify the salary and arrear bills of every employee but the one-time exception will save the accounts section the additional burden. It will, however, work out the details of the dues later.
After the new salaries were notified on August 29, the government came out with a detailed “ready reckoner” that took into account each earlier pay scale and the corresponding change in it.
“The calculation of new salary has become easy but some error may occur while calculating the arrears because increments are involved. It is good that the pre-check requirement has been dispensed with,” an officer said.
Although the employees will have to pay income tax on the arrears, most of them are now busy calculating their dues. Only 40% of the arrears are to be paid during the current fiscal and the remaining 60% will be disbursed in 2009-10. The employees have the option to deposit the arrears in their GPF accounts after deduction of tax. For the payment of the hiked salaries, the employees have been asked to submit a statement of fixation of pay after tallying it with the ready reckoner.
The buzz in government offices is also on a possible “anomaly” in the new scales. The pay band system, officers said, is likely to dilute the motivation for promotion because an employee's salary will, anyway, go on increasing annually.
Under the new rules, there are only four pay bands for all employees and officers with assured annual increments. As a result, a large number of employees, despite their in-cadre seniority, would be placed in the same pay band for a considerable period.
“The financial premium on promotions will certainly get diluted. We need to see what impact the new system has on the motivation levels of employees,” a director dealing with accounts said.
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/04/2008 : 12:24:33
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Thursday, September 4, 2008 Armed forces want cabinet to consider pay revision 13 comments at 7:20 PM Contending that dilution of parity with the bureaucracy and paramilitary forces will hinder their operations, the armed forces want the cabinet, rather than the anomalies committee, to consider their demands over the pay panel report.The Chiefs of Staff Committee chairman and Indian Navy chief Admiral Sureesh Mehta wrote a letter to Defence minister A.K. Antony Sep 1 saying these core issues, if left unaddressed, will result in “despondency” among the armed forces.
Mehta said in the letter that the erosion of parity between the armed forces officers and their civilian and paramilitary counterparts would affect the joint operations.
“The command and control functions will be seriously hampered between army, BSF (Border Security Force) and CPMF (Central Paramilitary Forces), where infighting will jeopardize operations,” the letter says.
The reviewed report of the Sixth Pay Commission has upgraded the civilian and paramilitary counterparts of the officers of the ranks of lieutenant colonel and equivalent to the higher pay band.
Because of this, the civilian officers who were in the lower pay bracket and were hitherto drawing lesser pay than lieutenant colonels and officers of equivalent ranks would now draw a higher basic salary.
In fact, subsequent to the revised report even a short service commissioned officer in paramilitary forces will get a higher pay than most permanent commissioned officers in the armed forces.
Besides drawing a higher pay the civilian and paramilitary officials have gained ascendancy in terms of ranks on their armed forces counterparts.
As the armed forces and paramilitary forces have to work in tandem, Mehta has underscored that this lack of parity is “unacceptable” to the officers belonging to the senior services, that is the army, navy and air force.
He urged the defence minister that the relativities between the armed forces and paramilitary and bureaucracy be “immediately restored”.
Earlier, the Personnel Below Officer Ranks (PBORs) used to draw a pension in proportion to their years of service, but after the reviewed report of the finance ministry the PBORs will get pension half of their last pay drawn.
“The PBOR are put at a disadvantage as due to truncation of career they retire early and draw lesser pay relatively and hence ending up getting lesser pension,” Mehta said in the letter.
The letter is seen as the move to preempt the defence ministry’s move to send the demands of the armed forces to the finance ministry’s anomalies committee, set up to look into the grievances arising out of the pay panel’s recommendations.
Mehta has also asked for inclusion of the officers of the rank of Lt. Gen. and equivalent in the “Higher Administrative Grade Plus” category, created in all services except the armed forces. The director generals have been placed in the HAG plus category.
Earlier, Indian Air Force chief Air Chief Marshal Fali H. Major, as officiating chairman of the Chiefs of Staff Committee, had written to Antony urging him to intervene before the government implemented the pay panel recommendations.
The report of the Sixth Pay Commission, headed by Justice (retd) B.N. Srikrishna, was submitted to Finance Minister P. Chidambaram March 24.
It led to protests from both civilian and defence personnel, following which the government appointed a committee under Cabinet Secretary K. Chandrashekhar to study the various demands for financial corrections.
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/04/2008 : 19:54:53
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Pay panel award to put pressure on Govt finances, says RBI 4 Sep, 2008, 2120 hrs IST, PTI NEW DELHI : The RBI on Thursday warned that the government finances will come under pressure due to the Sixth Pay Commission, as also farm-loan waiver and subsidies, and said it will continue tight monetary policy even as inflation eased for the second successive week to 12.34 per cent.
"The finances of the Central Government may come under pressure during 2008-09 on account of implementation of the Sixth Pay Commission award including payment of arrears, higher oil subsidies, increase in fertiliser subsidy due to a sharp rise in the price of raw materials and fertiliser in the international market," RBI said in its report on Currency and Finance 2006-08.
In addition to this, the RBI further said that volatile food and energy prices are other causes of concern that call for attention on urgent basis.
Projecting an eight per cent economic growth, the bank said that the overall stance of monetary policy would be to ensure a monetary and interest rate environment that accords a high priority to price stability.
"It is critical at the prevailing juncture to demonstrate on a continuing basis a determination to act decisively, effectively and swiftly to curb any signs of adverse developments in regard to inflation expectations," the RBI stressed.
The Reserve Bank has gradually raised the Cash Reserve Ratio (CRR) and reserve repo rate to nine per cent to tame rising inflation.
While sounding a word of caution on going ahead with fuller capital account convertibility of rupee by 2011, the report said "the banking sector requires to develop appropriate capabilities to manage the varied and enhanced risks".
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/05/2008 : 09:45:29
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Flash:Gazette Notification of Ministry of Railways on 6th Pay Commission (RBENo.103/2008) Hindi / English |
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S.ravi
Advanced Member

India
4205 Posts |
Posted - 09/05/2008 : 10:13:00
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Gazette Notification of Ministry of Railways on 6th Pay Commission (RBENo.103/2008) Hindi / English http://indianrailways.gov.in - S.RAVI AXEN/works/CN/MS ... 05-09-08 |
Edited by - S.ravi on 09/05/2008 10:56:47 |
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