Sixth Pay Commission report

[Ravi Chandran.K]

NEW DELHI - The Cabinet today approved the Sixth Pay Commission
report on wage hike for central government employees.
Following is the text of the press release issued by the Press
Information Bureau on the Cabinet decision:

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 Jan 1, 2006 and revised rates of
allowances from Sep 1, 2008. The Cabinet also decided that arrears
will be paid in cash in two instalments--first instalment of 40%
during the current financial year (2008-09) and the remaining 60% in
the next financial year (2009-10).
The Cabinet has broadly accepted the recommendations of the Sixth
Pay Commission 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.
The minimum basic pay for a government servant has been increased
to 7,000 rupees from 6,600 rupees recommended by the Commission.
Consequently, the total emoluments of an employee at the lowest level
will exceed 10,000 rupees per month, including allowances.
The other highlights of the Cabinet decision covering all
government
employees including the defence forces are:
* Enhancement in the fitment in revised pay bands, which was
recommended by the commission to be based on multiplication factor of
1.74 to 1.86. This would result in increased emoluments for
government employees.
* Increase in the rate of annual increment from 2.5% to 3.0%.
* Removal of campus restriction for grant of transport allowance.
* Increase in transport allowance at the lowest level to 600 rupees
(from 400 rupees in A-1/A class cities recommended by the commission)
and 400 rupees (from 300 rupees in other cities recommended by the
commission).
* At least three promotions have been assured for all defence forces'
personnel and civilian employees under the modified Assured Career
Progression 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.

For the armed forces personnel, the commission, for the first time
recommended a Military Service Pay. The Cabinet has increased the rate
of MSP for people below officers rank to 2,000 rupees from 1,000
rupees recommended by the commission. The officers of the defence
forces would get an MSP of 6,000 rupees over and above their pay.
The 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 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 Jan 1, 2006.
As replacement of the pay-scale of 24,050-26,000 rupees, a
separate pay scale has been carved for Director General of Police,
Principal Chief Conservator of Forests, General Manager (Railways),
members of boards of income tax, customs and central excise, postal
and ordinance factories, among others, who were in this pre-revised
scale. This would take them to the level
of 80,000 rupees in two years as against three years in the pre-
revised scale.
Further, the IPS pay rules and the India Forest Service pay rules
will be appropriately modified to provide in each state cadre one post
of DGP and one post of Principal Chief Conservator of Forests at the
apex level of 80,000 rupees for heading their respective forces.
Middle level police and civilian officers, that is, 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.
Other salient decisions taken by the Cabinet are:
* The lower limits of Disability of Pension for defence personnel to
be
doubled from 1,550 rupees to 3,100 rupees. War Disability Pension
granted at 60%.
* The rates of Special Forces Allowance for Army and Air Force to be
equated with Navy's Marine Commando Allowance.
* For the officers of central para-military forces, all posts of
additional DIG upgraded to DIG level by the commission to continue to
be manned by the cadre offices of central para-military forces.
* For the railway employees who are in the receipt of running
allowance, this allowance will be taken into account while fixing
their pay in revised pay bands.
* Government has continued the present position of granting Group A
scale to Group B officers after four years of service and these
officers would be placed in PB-3 instead of PB-2 recommended by the
commission. This would benefit Group B officers of the railways,
accounts services, central secretariat services, CSSS and DANICS &
DANIPS.
* For Doctors, the Cabinet has approved promotions under the Dynamic
ACP Scheme up to Senior Administrative Grade (Joint Secretary level)
for doctors with 20 years of service. Counting of Dearness Allowance
on non-practice allowance as on Jan 1, 2006 for fixing their pay in
revised pay bands has also been approved.
* For the scientists, continuation of the existing system of grant of
Special Pay of 2,000 rupees per month to Scientists G on promotion and
doubling of the amount to 4,000 rupees per month in Departments of
Space and Atomic Energy and DRDO has been recommended.

The financial implications in 2008-09 on account of the
implementation of the recommendations of the Sixth Central Pay
Commission as modified by Cabinet will be around 157 bln rupees on
the central Budget and 64 bln rupees on the Railway Budget.

Ravichandran K.
www.kences1.blogspot.com