New Delhi, Dec. 23 India’s top two compact car makers have been able to more than double their sales through their special schemes for Government and public sector employees.
Since October, Maruti and Hyundai had launched discount schemes to lure Government employees to buy cars. The strategy to harp on sales to Government employees was also considering the fact that overall car industry has been on a slow lane with banks being stringent in lending.
“Normally we sell 3,000 to 4,000 cars to Central Government and public sector employees. But in October we sold 10,000 cars to Government staff,” Mr Mayank Pareek, Executive Officer, Sales, Maruti Suzuki India, told Business Line.
‘Wheels of India’
He said that since February, when the implementation of the Sixth Pay Commission was announced, Maruti had launched the “Wheels of India” campaign. It was aimed at offering higher discounts to Government employees than what was applicable for ordinary car buyers.
For example, this month Maruti is offering almost Rs 50,000 as discount on Wagon R to Government employees and for non-government employees, it comes to about Rs 47,000. Similarly, for Alto the discount for PSU employees is at Rs 28,000 as compared to Rs 25,500 for non-government buyers.
Hyundai too could sell 2,000 to 2,500 more cars to Government employees through its discounts.
“In the first month we sold about 3,000 cars and in the second month, it increased to around 3,500,” said a Hyundai Motor India spokesperson.
Last month, Hyundai offered a discount of Rs 17,000 to Rs 22,000 on its hatchback Santro variants. However, for non-government employee it was insurance and a three-year warranty that was the lure. Similarly, Government employees were entitled to a discount of Rs 10,000 on its premium compact car i-10, Rs 22,000-27,000 on Getz and Rs 31,000 on its sedan Verna.
For non-government customers of i-10, the concession was reduced by almost half to Rs 5,000 and in case of Getz, it was between Rs 4,000 and Rs 8,000.
Encouraging signs
While the numbers appear small when compared to the estimated 55 lakh beneficiaries of the Sixth Pay Commission, industry officials still look at it as encouraging considering the current industry scenario.
“Although Government has announced the revised pay scale many of the employees are yet to get the benefit. So demand has been relatively lukewarm. Moreover, this being a year-end, customers prefer to wait to buy next year’s model. But we hope demand to pick up from January onwards,” said Mr Prem Bagga, President of Automobile Dealers Association of Delhi, who also has dealerships for Bajaj and Maruti.
Tuesday, December 23, 2008
Sunday, November 30, 2008
LATEST ON 6TH PAY COMMISSION-UP GOV.
Pay hike burden to make a dent in development plans
29 Nov 2008,
LUCKNOW: The welfare of 16 lakh government employees
and teachers has virtually negated the development interest of the 17 crore population of
Uttar Pradesh. This is because the hefty financial burden, caused by their pay-hike under the Sixth Pay Commission report, has forced the government to slash the state's annual plan size fixed at Rs 35,000 crore for the current financial year.
If sources within the finance department are to be believed, then a plan outlay of Rs 1,115 crore for the year of 2008-09 would be curtailed. This is a part of various measures planned to meet the financial obligations on account
of pay-hikes.
This is beside the order already issued to freeze Rs 900 crore deposited with the Public Ledger Account (PLA) before March 31, 2007. The PLA amount is a fund that could not be utilised on earmarked schemes by departments concerned within a financial year ending on March 31 every year. Reasons could be varied for this. But in any case, the fund is carried over for the next year and utilised as per needs. However, after its freeze, it would be no longer available for development purpose. This means many schemes would either be put off or delayed for their execution.
The pay-hike decision has virtually sent the state exchequer bleeding under a hefty financial burden of Rs 18,336 crore. Since it comes as a popular measure to keep state employees happy ahead of the Lok Sabha poll, the government has chosen to rely on soft options for its fund management. While so far no new taxes have been imposed, the government has gone in for dovetailing of available resources.
This way, the government has already raised Rs 2,015 crore from the cut in the plan size. But still there is a yawning gap, as it needs an additional equal amount to meet its financial obligation. But then the financial officials put it that the liability would be spread mainly for the next financial year, as this financial year has only four more months to go.
What makes the situation difficult is the shortfall in the revenue collection, which is earmarked at Rs 33,813 crore during the current financial year. By the end of October, the total tax recovery stood at Rs 15,000 crore as against that of a target set for Rs 16,000 crore revenue. The collection though the major source of the VAT regime dipped to Rs 8,883 crore as against the target of Rs 9,712 crore and the land revenue tax touched a shortfall of 10% till October.
The recovery through stamp and registration fee, however, has shown an increase of 2.5 per cent by collecting Rs 3,005 crore as against the target of Rs 2,506 crore for the above period. This also holds true about the excise department, which has collected 2,567 crore as against the target of Rs 2,480 crore.
The depletion of its own resources would increase the state's dependence on its share in the Central taxes that stands at well over Rs 33,000 crore and the Central grants-in aid of about Rs 12,000 crore. This may lead to a fiscal deficit and in case it increases more than 3% of the state's GDP, then there will be a severe financial crisis
.
29 Nov 2008,
LUCKNOW: The welfare of 16 lakh government employees
and teachers has virtually negated the development interest of the 17 crore population of
Uttar Pradesh. This is because the hefty financial burden, caused by their pay-hike under the Sixth Pay Commission report, has forced the government to slash the state's annual plan size fixed at Rs 35,000 crore for the current financial year.
If sources within the finance department are to be believed, then a plan outlay of Rs 1,115 crore for the year of 2008-09 would be curtailed. This is a part of various measures planned to meet the financial obligations on account
of pay-hikes.
This is beside the order already issued to freeze Rs 900 crore deposited with the Public Ledger Account (PLA) before March 31, 2007. The PLA amount is a fund that could not be utilised on earmarked schemes by departments concerned within a financial year ending on March 31 every year. Reasons could be varied for this. But in any case, the fund is carried over for the next year and utilised as per needs. However, after its freeze, it would be no longer available for development purpose. This means many schemes would either be put off or delayed for their execution.
The pay-hike decision has virtually sent the state exchequer bleeding under a hefty financial burden of Rs 18,336 crore. Since it comes as a popular measure to keep state employees happy ahead of the Lok Sabha poll, the government has chosen to rely on soft options for its fund management. While so far no new taxes have been imposed, the government has gone in for dovetailing of available resources.
This way, the government has already raised Rs 2,015 crore from the cut in the plan size. But still there is a yawning gap, as it needs an additional equal amount to meet its financial obligation. But then the financial officials put it that the liability would be spread mainly for the next financial year, as this financial year has only four more months to go.
What makes the situation difficult is the shortfall in the revenue collection, which is earmarked at Rs 33,813 crore during the current financial year. By the end of October, the total tax recovery stood at Rs 15,000 crore as against that of a target set for Rs 16,000 crore revenue. The collection though the major source of the VAT regime dipped to Rs 8,883 crore as against the target of Rs 9,712 crore and the land revenue tax touched a shortfall of 10% till October.
The recovery through stamp and registration fee, however, has shown an increase of 2.5 per cent by collecting Rs 3,005 crore as against the target of Rs 2,506 crore for the above period. This also holds true about the excise department, which has collected 2,567 crore as against the target of Rs 2,480 crore.
The depletion of its own resources would increase the state's dependence on its share in the Central taxes that stands at well over Rs 33,000 crore and the Central grants-in aid of about Rs 12,000 crore. This may lead to a fiscal deficit and in case it increases more than 3% of the state's GDP, then there will be a severe financial crisis
.
Haryana to implement sixth pay commission
Haryana to implement sixth pay commission sclaes from Jan 2006
Punjab Newsline Network
Saturday, 29 November 2008
CHANDIGARH: The Haryana Chief Minister Bhupinder Singh Hooda today said that the revised pay scales according to the recommendations of sixth pay commission to all State Government employees would be implemented from January 2006. The State Government had already made a provision of Rs. 1500 crore in the annual budget
this financial year.
The Chief Minister while replying the questions of Media Persons at Rohtak said that a committee had been formed under the Chairmanship of Haryana Chief Secretary to look into the matter and to decide the revised pay scales as per the recommendations of sixth pay commission.
He said that the committee had received about 225 suggestions from different departments about the revision in the pay scales. For the transparency in the fixation of pay scales the committee had given personal hearing to all the request and suggestions. He assured that the new pay scales would be satisfactory and justifiable to each and every category of employees.
Hooda said that "employees are the back bone of the administration set up and the present Congress Government is well-wisher of the employees". He said that almost all the retrenched employees by the previous Government had been merged in the various departments by this Government only. They had also been given relaxation to appear again in the departmental examinations.
He said that keeping in view the interest of the employees the Government had made the ex-gratia scheme more effective for their dependents. This scheme would provide financial security besides giving social security to the employees.
Punjab Newsline Network
Saturday, 29 November 2008
CHANDIGARH: The Haryana Chief Minister Bhupinder Singh Hooda today said that the revised pay scales according to the recommendations of sixth pay commission to all State Government employees would be implemented from January 2006. The State Government had already made a provision of Rs. 1500 crore in the annual budget
this financial year.
The Chief Minister while replying the questions of Media Persons at Rohtak said that a committee had been formed under the Chairmanship of Haryana Chief Secretary to look into the matter and to decide the revised pay scales as per the recommendations of sixth pay commission.
He said that the committee had received about 225 suggestions from different departments about the revision in the pay scales. For the transparency in the fixation of pay scales the committee had given personal hearing to all the request and suggestions. He assured that the new pay scales would be satisfactory and justifiable to each and every category of employees.
Hooda said that "employees are the back bone of the administration set up and the present Congress Government is well-wisher of the employees". He said that almost all the retrenched employees by the previous Government had been merged in the various departments by this Government only. They had also been given relaxation to appear again in the departmental examinations.
He said that keeping in view the interest of the employees the Government had made the ex-gratia scheme more effective for their dependents. This scheme would provide financial security besides giving social security to the employees.
Monday, November 10, 2008
NEWS 6TH PAY COMMISSION
Government has proposed to raise income tax exemption limit for gratuity funds to Rs 10 lakh from the present Rs 3.5 lakh for both government and private sector employees consequent on implementation of sixth pay commission report which fixed the maxium limit of gratuity that payable to Central Government employees at Rs.10 lakhs against the earlier limit of Rs. 3.5 lakhs.
The industry and trade unions have supported the government proposal to raise the tax exemption limit for gratuity funds to Rs 10 lakh from the present Rs 3.5 lakh for both government and private sector employees.
The Federation for Indian Chambers of Commerce and Industry (Ficci), for instance, wants it to be implemented as early as possible.
“The increase in tax exemption limit translates into increase in entitlement of the employee in most cases,” a Ficci spokesperson said. Many employees who were eligible for more than Rs 3.5 lakh were not getting it so far. This will change with the change in the ceiling, Ficci said.
In a communication to trade unions and employers in October, the Union labour ministry had asked for views on whether the ceiling should be raised to Rs 10 lakh. Three weeks time was given to the stakeholders for submitting their responses.
An Assocham official said the organisation had written to its members that it was in favour of the increase. The companies had responded positively to it, the trade body said.
Labour Secretary Sudha Pillai said that the ministry was yet to take a view on the matter. “We will take a stand depending on the response of the employees and employers groups,” she said.
The ministry’s move follows the Sixth Pay Commission recommendation to extend the limit for central government employees. Officials said the ministry seeks to bring parity between the government and private sector employees.
Trade unions have already sent their assent to the proposal. Hind Mazdoor Sabha national secretary R A Mittal said: “We got the letter from the ministry in October and we replied promptly that we are in favour of it.”
“Why would trade unions oppose it,” he asked.
CITU national secretary W R Varadarajan said that the union had always been demanding raising of the exemption ceiling. “We have supported the move,” he said.
The Payment of Gratuity Act, 1972, applies to factories and other establishments employing 10 or more persons. On completion of five years service, the employees are entitled to payment of gratuity at the rate of 15-day wages for every completed year of service or part of it in excess of six months subject to a maximum of Rs 3.5 lakh, the law says. However, the gratuity is considered an income and the employee who receives it is liable to pay taxes on it. However, gratuity up to Rs 3.5 lakh is exempt from tax under the provisions of Section 10(10) of the Income Tax Act, 1961.
Employers also enjoy tax exemption under the Income Tax Act on any sum paid by way of contribution towards an approved gratuity fund. Till now the payment could not exceed Rs 3.5 lakh.
Ficci said this move would not benefit the employers by way of a source of parking more funds in a tax exempt source. “It has to be paid to the employee. Even if the employee leaves without completing five years, the use of the money has to be accounted for,” said an official.
“Though under the Gratuity Act, gratuity funds were supposed to be set up by companies, not all have done it and gratuity is paid out of the general account. Therefore, there is no tax exemption unless the sum is shown as having been paid as gratuity,” he said.
Source : Business Standard
The industry and trade unions have supported the government proposal to raise the tax exemption limit for gratuity funds to Rs 10 lakh from the present Rs 3.5 lakh for both government and private sector employees.
The Federation for Indian Chambers of Commerce and Industry (Ficci), for instance, wants it to be implemented as early as possible.
“The increase in tax exemption limit translates into increase in entitlement of the employee in most cases,” a Ficci spokesperson said. Many employees who were eligible for more than Rs 3.5 lakh were not getting it so far. This will change with the change in the ceiling, Ficci said.
In a communication to trade unions and employers in October, the Union labour ministry had asked for views on whether the ceiling should be raised to Rs 10 lakh. Three weeks time was given to the stakeholders for submitting their responses.
An Assocham official said the organisation had written to its members that it was in favour of the increase. The companies had responded positively to it, the trade body said.
Labour Secretary Sudha Pillai said that the ministry was yet to take a view on the matter. “We will take a stand depending on the response of the employees and employers groups,” she said.
The ministry’s move follows the Sixth Pay Commission recommendation to extend the limit for central government employees. Officials said the ministry seeks to bring parity between the government and private sector employees.
Trade unions have already sent their assent to the proposal. Hind Mazdoor Sabha national secretary R A Mittal said: “We got the letter from the ministry in October and we replied promptly that we are in favour of it.”
“Why would trade unions oppose it,” he asked.
CITU national secretary W R Varadarajan said that the union had always been demanding raising of the exemption ceiling. “We have supported the move,” he said.
The Payment of Gratuity Act, 1972, applies to factories and other establishments employing 10 or more persons. On completion of five years service, the employees are entitled to payment of gratuity at the rate of 15-day wages for every completed year of service or part of it in excess of six months subject to a maximum of Rs 3.5 lakh, the law says. However, the gratuity is considered an income and the employee who receives it is liable to pay taxes on it. However, gratuity up to Rs 3.5 lakh is exempt from tax under the provisions of Section 10(10) of the Income Tax Act, 1961.
Employers also enjoy tax exemption under the Income Tax Act on any sum paid by way of contribution towards an approved gratuity fund. Till now the payment could not exceed Rs 3.5 lakh.
Ficci said this move would not benefit the employers by way of a source of parking more funds in a tax exempt source. “It has to be paid to the employee. Even if the employee leaves without completing five years, the use of the money has to be accounted for,” said an official.
“Though under the Gratuity Act, gratuity funds were supposed to be set up by companies, not all have done it and gratuity is paid out of the general account. Therefore, there is no tax exemption unless the sum is shown as having been paid as gratuity,” he said.
Source : Business Standard
Thursday, November 6, 2008
Teachers not Happy with 70% increase in Pay?
Teachers not Happy with 70% increase in Pay?
Various teachers’ organisations have expressed resentment over the UGC-Pay Review Committee’s recommendations, saying the report has fallen short of
their expectations as it has several “anomalies”.
The Delhi University Teachers’ Association has said major demand of teachers for higher pay scale to lecturers so as to attract talent to the university system has not been accepted.
“The demand for introduction of professorship/professor’s grade in all colleges to retain talent has not been considered by the committee headed by Prof G K Chadha,” it said.
DUTA representatives on Monday met UGC Chairman Sukhadeo Thorat to air their grievances, its president Aditya Narayan Mishra said.
Democratic Teachers’ Front, a teachers’ organisation in Delhi University, said the recommendations of the Pay Review Committee with regard to pay scales and service conditions failed to reflect its objective of making the teaching profession more attractive.
It said the UGC had earlier suggested 25 per cent higher entry pay for teachers in comparison to the Group A services and three promotions for all teachers so that teachers could have parity with Group A services in terms of career earnings.
The college teachers have been explicitly downgraded by the recommendations which denied them promotion till professor’s grade, it claimed. The DTF demanded a review of the report.
Delhi University Principal’s Association, which had asked for senior principals’ scale for those principals who have already completed eight to 10 years of service, said the committee has remained silent on the issue.
The Committee has recommended “Sabatical Leave” for college teachers but has not mentioned about “principals” categorically, it said.
Professors’ posts have been created in colleges having post-graduate teaching in respective subjects. Similar provisions should be made for colleges offering honours programmes, its president S K Garg said.
Indian National Teacher Congress has said teachers have been denied the third promotion in colleges in the form of professorship/professor’s grade as demanded since the last 20 years.
The committee’s chairperson Rashmi Bhardwaj will meet HRD Minister Arjun Singh to apprise him the anomalies in the pay structure.
Meanwhile, the UGC members on Tuesday started a two-day meeting to discuss the recommendations. UGC will submit the report to the government by Thursday after its consideration.
The UGC-Pay Review Committee, which submitted its report to the UGC on Friday, has recommended a whopping over 70 per cent pay hike with additional allowances and new positions to academicians.
As per the recommendations, at the entry level, a faculty member will join as an assistant professor, not as a lecturer as earlier, and his new pay band will be between Rs 15,600 to Rs 39,100. The teacher at the entry level will be entitled for a grade pay of Rs 6,600. At present, a lecturer’s pay scale is between Rs 8,000 to Rs 13,500.
A teacher will be entitled for annual increment of three per cent of the basic salary with compounding effect. Certain teachers with good performance record can get four per cent annual increment.
Similarly, the committee has recommended a new band pay between Rs 37,400 to Rs 67,000 for professor against the existing scale of Rs 16,400 to Rs 22,400.
Various teachers’ organisations have expressed resentment over the UGC-Pay Review Committee’s recommendations, saying the report has fallen short of
their expectations as it has several “anomalies”.
The Delhi University Teachers’ Association has said major demand of teachers for higher pay scale to lecturers so as to attract talent to the university system has not been accepted.
“The demand for introduction of professorship/professor’s grade in all colleges to retain talent has not been considered by the committee headed by Prof G K Chadha,” it said.
DUTA representatives on Monday met UGC Chairman Sukhadeo Thorat to air their grievances, its president Aditya Narayan Mishra said.
Democratic Teachers’ Front, a teachers’ organisation in Delhi University, said the recommendations of the Pay Review Committee with regard to pay scales and service conditions failed to reflect its objective of making the teaching profession more attractive.
It said the UGC had earlier suggested 25 per cent higher entry pay for teachers in comparison to the Group A services and three promotions for all teachers so that teachers could have parity with Group A services in terms of career earnings.
The college teachers have been explicitly downgraded by the recommendations which denied them promotion till professor’s grade, it claimed. The DTF demanded a review of the report.
Delhi University Principal’s Association, which had asked for senior principals’ scale for those principals who have already completed eight to 10 years of service, said the committee has remained silent on the issue.
The Committee has recommended “Sabatical Leave” for college teachers but has not mentioned about “principals” categorically, it said.
Professors’ posts have been created in colleges having post-graduate teaching in respective subjects. Similar provisions should be made for colleges offering honours programmes, its president S K Garg said.
Indian National Teacher Congress has said teachers have been denied the third promotion in colleges in the form of professorship/professor’s grade as demanded since the last 20 years.
The committee’s chairperson Rashmi Bhardwaj will meet HRD Minister Arjun Singh to apprise him the anomalies in the pay structure.
Meanwhile, the UGC members on Tuesday started a two-day meeting to discuss the recommendations. UGC will submit the report to the government by Thursday after its consideration.
The UGC-Pay Review Committee, which submitted its report to the UGC on Friday, has recommended a whopping over 70 per cent pay hike with additional allowances and new positions to academicians.
As per the recommendations, at the entry level, a faculty member will join as an assistant professor, not as a lecturer as earlier, and his new pay band will be between Rs 15,600 to Rs 39,100. The teacher at the entry level will be entitled for a grade pay of Rs 6,600. At present, a lecturer’s pay scale is between Rs 8,000 to Rs 13,500.
A teacher will be entitled for annual increment of three per cent of the basic salary with compounding effect. Certain teachers with good performance record can get four per cent annual increment.
Similarly, the committee has recommended a new band pay between Rs 37,400 to Rs 67,000 for professor against the existing scale of Rs 16,400 to Rs 22,400.
Friday, October 31, 2008
TEACHER'S PAY
Teachers’ team meets Arjun Singh
The All India Federation of University and College Teachers’ Organisations has, in a 17-point charter on modifications in the sixth University Grants Commission (UGC) pay review report, demanded placement of readers/selection grade lecturers in pay band four, assured ‘third promotion’ for all teachers, professorship in undergraduate department and full parity between teachers and librarians/directors of physical education.
The organisations delegation led by its president Thomas Joseph and general secretary Asok Burman presented the demand to the Union Human Resource Development Minister Arjun Singh in New Delhi the recently.
According to a press release, Mr. Singh assured the delegation that the pay review report’s recommendations would be implemented soon.
Source : The Hindu.
The All India Federation of University and College Teachers’ Organisations has, in a 17-point charter on modifications in the sixth University Grants Commission (UGC) pay review report, demanded placement of readers/selection grade lecturers in pay band four, assured ‘third promotion’ for all teachers, professorship in undergraduate department and full parity between teachers and librarians/directors of physical education.
The organisations delegation led by its president Thomas Joseph and general secretary Asok Burman presented the demand to the Union Human Resource Development Minister Arjun Singh in New Delhi the recently.
According to a press release, Mr. Singh assured the delegation that the pay review report’s recommendations would be implemented soon.
Source : The Hindu.
Wednesday, October 8, 2008
TEACHER'S PAY HIKE - AFTERMATH
NEW DELHI: Parents may well have to bear the brunt of the hike in salaries of school teachers after the Sixth Pay Commission. Not only will they
have to prepare for an increased fee structure, if schools have their way, parents may also have to cough up arrears for the past two years.
Several city schools have approached the Directorate of Education (DoE) for permission to enforce the fee hike with effect from January 1, 2006, saying they would be unable to bear the entire financial burden on their own and would have to pass it on to the parents. "We have written to the DoE asking for permission to charge the arrears from parents. This is our only demand. The salaries for the teachers have to be paid from September 2008 but schools need to work out the source for paying the arrears,'' said S L Jain, chairperson, National Progressive Schools Conference (NPSC).
Jain had earlier said that a fee hike was inevitable but the quantum would be decided only after discussions with other schools and the DoE. "If the DoE allows, parents may either have to pay up a certain part of the arrears to be paid to teachers if not the whole amount,'' Jain said.
Meanwhile, schools have started warning parents about the enormous amount they may have to shell out. For instance, Tagore International School, Vasant Vihar issued a circular to parents before the autumn break, informing them that there would be an average salary increase of 50-55% for teachers. "Over and above this, the arrears of the increased salary have to be paid backdated from January 1, 2006 i.e. for the last two years and nine months too. The figures are enormous and cannot be borne by the school's current fees income... a supplementary bill will be sent to you later following the Directorate's guidelines and instructions,'' said the circular. The school authorities could not be reached for comment.
Laxman Public School, Hauz Khas, had a PTA meeting recently to work out the new fee structure. "We will introduce the hike in consultation with the parents. If the directorate allows us to charge the arrears, parents can pay in instalments,'' said principal, Usha Ram.
Schools usually ask for three months fee at the time of admission, which includes tuition, development and annual charges, besides the caution money, registration fee and admission charges that have to be paid as well. Individual schools meanwhile are drawing up new salary structures that the Sixth Pay Commission has made available to teachers, to decide how much of the increase can be passed off to the parents. The minimum increase, according to school authorities, is going to be in the region of 20-30%. "That is the least that parents should expect. After the last Pay Commission recommendations, the court had allowed 40% hike in fee. This time, we need to hike fee by at least 30%, though the exact amount will be discussed with all schools before taking a final decision,'' added S C Baveja, principal, Bal Bharti.
According to schools, the student fee is the only source of income for them because of which a hike in fees cannot be avoided if the teachers' salaries have to be increased. Added Suraj Prakash, principal, CRPF school, "The new salary structure that will be in effect for teachers has made it imperative for us to increase the fee.''
have to prepare for an increased fee structure, if schools have their way, parents may also have to cough up arrears for the past two years.
Several city schools have approached the Directorate of Education (DoE) for permission to enforce the fee hike with effect from January 1, 2006, saying they would be unable to bear the entire financial burden on their own and would have to pass it on to the parents. "We have written to the DoE asking for permission to charge the arrears from parents. This is our only demand. The salaries for the teachers have to be paid from September 2008 but schools need to work out the source for paying the arrears,'' said S L Jain, chairperson, National Progressive Schools Conference (NPSC).
Jain had earlier said that a fee hike was inevitable but the quantum would be decided only after discussions with other schools and the DoE. "If the DoE allows, parents may either have to pay up a certain part of the arrears to be paid to teachers if not the whole amount,'' Jain said.
Meanwhile, schools have started warning parents about the enormous amount they may have to shell out. For instance, Tagore International School, Vasant Vihar issued a circular to parents before the autumn break, informing them that there would be an average salary increase of 50-55% for teachers. "Over and above this, the arrears of the increased salary have to be paid backdated from January 1, 2006 i.e. for the last two years and nine months too. The figures are enormous and cannot be borne by the school's current fees income... a supplementary bill will be sent to you later following the Directorate's guidelines and instructions,'' said the circular. The school authorities could not be reached for comment.
Laxman Public School, Hauz Khas, had a PTA meeting recently to work out the new fee structure. "We will introduce the hike in consultation with the parents. If the directorate allows us to charge the arrears, parents can pay in instalments,'' said principal, Usha Ram.
Schools usually ask for three months fee at the time of admission, which includes tuition, development and annual charges, besides the caution money, registration fee and admission charges that have to be paid as well. Individual schools meanwhile are drawing up new salary structures that the Sixth Pay Commission has made available to teachers, to decide how much of the increase can be passed off to the parents. The minimum increase, according to school authorities, is going to be in the region of 20-30%. "That is the least that parents should expect. After the last Pay Commission recommendations, the court had allowed 40% hike in fee. This time, we need to hike fee by at least 30%, though the exact amount will be discussed with all schools before taking a final decision,'' added S C Baveja, principal, Bal Bharti.
According to schools, the student fee is the only source of income for them because of which a hike in fees cannot be avoided if the teachers' salaries have to be increased. Added Suraj Prakash, principal, CRPF school, "The new salary structure that will be in effect for teachers has made it imperative for us to increase the fee.''
Thursday, September 25, 2008
MODIFIED ALLOWENCES FOR --- TRAVEL
NEW DELHI: First class travel on international airlines has become a reality for top officials with the government issuing orders to substantially improve all travel rules in line with the Sixth Pay Commission's recommendations.
The high-end journeys can be undertaken by cabinet secretary and secretaries while officials a notch below can enjoy business class and all others can travel economy class.
For domestic official tours, all officers with a grade pay of Rs 10,000 or above can travel in business class or by AC first in trains. The entitlements of other officials have been revised from September 1 with the minimum being AC-III for those drawing Rs 4,200 or less as grade pay. The government has taken a strong view on personal use of "mileage points" of frequent-flier officials and ordered that these points would accrue to the department concerned for concessional travel by others on official tours.
"Any usage of these mileage points for purposes of private travel by an officer will attract departmental action. This is to ensure that the benefits out of official travel, which is funded by the government, should accrue to the government," the order says. To ensure that tours are taken judiciously, the government has clarified that no additional funds would be provided on account of revision in entitlements. The departments are expected to restrict official tours only to "absolutely essential" requirement.
Journeys undertaken in buses and taxis, including air-conditioned ones, will be reimbursed on the basis of actual expenses for officers in grade pay up to Rs 4,200.
Official tours in own cars or taxis can be reimbursed at the rate of Rs 16 per km. It would be Rs 8 per km for auto-rickshaws and scooters. The highest daily expense for hotel stay would be Rs 5,000 now with additional food bills up to Rs 500. The limit goes down as per grade pay to a minimum daily entitlement of Rs 300.
A composite transfer grant equal to one month's basic pay can be taken for change of stations beyond 20 km. The weight limit for shifting household goods has been revised upwards.
If an officer's spouse is working, he or she can claim 50% of the transfer grant if moving between same stations within six months but after 60 days of the spouse's transfer.
The high-end journeys can be undertaken by cabinet secretary and secretaries while officials a notch below can enjoy business class and all others can travel economy class.
For domestic official tours, all officers with a grade pay of Rs 10,000 or above can travel in business class or by AC first in trains. The entitlements of other officials have been revised from September 1 with the minimum being AC-III for those drawing Rs 4,200 or less as grade pay. The government has taken a strong view on personal use of "mileage points" of frequent-flier officials and ordered that these points would accrue to the department concerned for concessional travel by others on official tours.
"Any usage of these mileage points for purposes of private travel by an officer will attract departmental action. This is to ensure that the benefits out of official travel, which is funded by the government, should accrue to the government," the order says. To ensure that tours are taken judiciously, the government has clarified that no additional funds would be provided on account of revision in entitlements. The departments are expected to restrict official tours only to "absolutely essential" requirement.
Journeys undertaken in buses and taxis, including air-conditioned ones, will be reimbursed on the basis of actual expenses for officers in grade pay up to Rs 4,200.
Official tours in own cars or taxis can be reimbursed at the rate of Rs 16 per km. It would be Rs 8 per km for auto-rickshaws and scooters. The highest daily expense for hotel stay would be Rs 5,000 now with additional food bills up to Rs 500. The limit goes down as per grade pay to a minimum daily entitlement of Rs 300.
A composite transfer grant equal to one month's basic pay can be taken for change of stations beyond 20 km. The weight limit for shifting household goods has been revised upwards.
If an officer's spouse is working, he or she can claim 50% of the transfer grant if moving between same stations within six months but after 60 days of the spouse's transfer.
Thursday, September 18, 2008
6TH PAY COMMISSION --- MAIN ITEMS
After the recommendations of the Sixth Pay Commission, here is the brief list of Perks, Arrears, Increments & Key Points of the Sixth Pay Commission, as listed in the official report of the Sixth Pay Commission. How much of these perks, arrears and Increments are you elgible to receive depends upon your Pay Band and the salary. You may also check the Online Calculators for Sixth Pay Commission Salary Calculations.
Sixth Commission Government Salary Calculators
State Wise Salary Hike details are covered in the links of the article: State Wise Salary Hike Details of Sixth Pay Commission. Please refer to the article and click on your respective state wise link for news and other information.
Link To: Revised Pay Scales, New Pay Bands Finalized by the Government
Union Government notified Sixth Pay Commission Friday. Following are some key points after notification.
Government has accepted most of the points but has rejected three recommendations and has put some other contentious issues to be taken up in future.
Pay Band and Grade pay:
* Grade Pay up to PB2 recommended by 6CPC accepted as such.
* Revised Grade pay from PB3 and above. Check New pay band and Grade Pay
* The basic pay drawn as on 1.1.2006 on the existing Fifth CPC pay scales will be multiplied by a factor of 1.86 and then rounded off to next multiple of 10. This will be the pay in the revised running Pay Band. Grade Pay, as approved by the Government, corresponding to the pre-revised pay scale, will then be added to the Pay in the revised Pay Band. The total of pay in the Pay Band and grade pay will be the revised Basic Pay as on 1.1.2006.
* Rate of annual increments will be 3% and the rate of variable increment for high achievers in PB-3 will be 4%.
* 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.
DA and other Allowances
* AICPI (IW) with base 2001 may, henceforth, be used for the purpose of calculating DA till it gets revised. The base using the 2001 series works out to be 115.76. Based on this index the revised DA as on Jan-06, July-06, Jan-07, July-07, Jan-08 and July-08 are estimated to be 0%, 3%, 6%, 9%, 12%, and 16% respectively (based on the calculation made as per index - Exact DA rates are yet to be confirmed by the Government).
* “Campus” restriction for grant of Transport Allowance will be removed. Consequently, employees living in campuses will also be eligible for Transport Allowance. Further, Transport Allowance for the employees at the lowest levels will be increased to Rs.600 (from Rs.400) in A-1/A class cities and Rs.400 (from Rs.300) in other towns.
* New TA - Employees drawing grade pay of Rs. 5400 and above will be eligible to receive TA of Rs.3200 and DA thereon (A1/A class cites) and Rs.1600 and DA thereon (other places. Similarly Employees drawing grade pay of Rs.4200 to Rs.4800 will be eligible to receive TA of Rs. Rs.1600 and DA thereon (A1/A class cites) and Rs.800 and DA thereon (other places). Employees drawing grade pay of below Rs. 4200 will be eligible to receive TA of Rs. 600 and DA thereon (A1/A class cites) and Rs.400 and DA thereon (other places).
* City Compensatory Allowance abolished.
* Employess living in X (Earlier classified as A-1), Y (Earlier classified as A, B-1 & B-2), and Z (Earlier classified as C and Unclassified) will be eligible for HRA of 30%, 20% and 10% (on Fixed Pay and Grade Pay) respectively.
* Children Education Allowance and Reimbursement of Tuition Fee are merged and reimbursement of Children Education allowance will be paid upto the maximum of Rs.1000 per child per month subject to a maximum of 2 children. Hostel subsidy will be reimbursed upto the maximum limit of Rs.3000 per month per child. The limits would be automatically raised by 25% every time the Dearness Allowance on the revised pay bands goes up by 50%.
* Cycle Allowance, Washing Allowance, Cash Handling Allowance, Special Allowance, Night Duty Allowance and Split Duty Allowance have been doubled. Similarly, rates of allowances specific to different Ministries/Departments/Organisations not covered in this Report will also be doubled. The rates of these allowances will be increased by 25% every time the Dearness Allowance payable on revised pay scales goes up by 50%.
* All provisions concerning travel under LTC are to be retained except frequency of travel in home town concession (up to three times during the first two blocks of 4 years after joining the service).
* The revised allowances, other than dearness allowance, will be effective from 1st day of September, 2008.
ACP (Assured Career Progression):
* Three upgradations will be granted under Assured Career Progression (ACP) Scheme at 10, 20 and 30 years as per the modified ACP Scheme recommended by the Commission. ACP Scheme will also be applicable to Group A employees.
* Financial upgradation through ACP will be available whenever a person has spent 10 years continuously in the same grade.
* Benefit of pay fixation available at the time of normal promotion shall be allowed at the time of financial upgradations under the scheme. Thus, an increase of 3% of pay and grade pay shall be available as financial upgradation under the scheme.
Other Points accepted by the Government:
* The Commission’s recommendation regarding payment of arrears has been modified to the extent that the 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 Government has approved setting up of Anomalies Committees to examine individual, post-specific and cadre-specific anomalies. The Anomalies Committees should endeavour to complete their work in one year.
Recommendations not accepted by the Government in Sixth Pay Commission:
* Liberal ‘severance package’ for those employees who want to leave service without pension with more than 15, but less than 20 years of service.
* Recommendation relating to Holiday Policy that there should only be three closed holidays for Government employees.
* Flexi-hours for women employees and flexi-weeks for employees with disabilities.
Recommendations of Sixth CPC which will be examined separately :
* Recommendation related to Bonus and Over Time Allowance.
* Recommendation related to General Provident Fund for Central Government employees and Central Government Employees Group Insurance Scheme.
* Introduction of Health Insurance Scheme for Central Government employees and pensioners.
Sixth Commission Government Salary Calculators
State Wise Salary Hike details are covered in the links of the article: State Wise Salary Hike Details of Sixth Pay Commission. Please refer to the article and click on your respective state wise link for news and other information.
Link To: Revised Pay Scales, New Pay Bands Finalized by the Government
Union Government notified Sixth Pay Commission Friday. Following are some key points after notification.
Government has accepted most of the points but has rejected three recommendations and has put some other contentious issues to be taken up in future.
Pay Band and Grade pay:
* Grade Pay up to PB2 recommended by 6CPC accepted as such.
* Revised Grade pay from PB3 and above. Check New pay band and Grade Pay
* The basic pay drawn as on 1.1.2006 on the existing Fifth CPC pay scales will be multiplied by a factor of 1.86 and then rounded off to next multiple of 10. This will be the pay in the revised running Pay Band. Grade Pay, as approved by the Government, corresponding to the pre-revised pay scale, will then be added to the Pay in the revised Pay Band. The total of pay in the Pay Band and grade pay will be the revised Basic Pay as on 1.1.2006.
* Rate of annual increments will be 3% and the rate of variable increment for high achievers in PB-3 will be 4%.
* 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.
DA and other Allowances
* AICPI (IW) with base 2001 may, henceforth, be used for the purpose of calculating DA till it gets revised. The base using the 2001 series works out to be 115.76. Based on this index the revised DA as on Jan-06, July-06, Jan-07, July-07, Jan-08 and July-08 are estimated to be 0%, 3%, 6%, 9%, 12%, and 16% respectively (based on the calculation made as per index - Exact DA rates are yet to be confirmed by the Government).
* “Campus” restriction for grant of Transport Allowance will be removed. Consequently, employees living in campuses will also be eligible for Transport Allowance. Further, Transport Allowance for the employees at the lowest levels will be increased to Rs.600 (from Rs.400) in A-1/A class cities and Rs.400 (from Rs.300) in other towns.
* New TA - Employees drawing grade pay of Rs. 5400 and above will be eligible to receive TA of Rs.3200 and DA thereon (A1/A class cites) and Rs.1600 and DA thereon (other places. Similarly Employees drawing grade pay of Rs.4200 to Rs.4800 will be eligible to receive TA of Rs. Rs.1600 and DA thereon (A1/A class cites) and Rs.800 and DA thereon (other places). Employees drawing grade pay of below Rs. 4200 will be eligible to receive TA of Rs. 600 and DA thereon (A1/A class cites) and Rs.400 and DA thereon (other places).
* City Compensatory Allowance abolished.
* Employess living in X (Earlier classified as A-1), Y (Earlier classified as A, B-1 & B-2), and Z (Earlier classified as C and Unclassified) will be eligible for HRA of 30%, 20% and 10% (on Fixed Pay and Grade Pay) respectively.
* Children Education Allowance and Reimbursement of Tuition Fee are merged and reimbursement of Children Education allowance will be paid upto the maximum of Rs.1000 per child per month subject to a maximum of 2 children. Hostel subsidy will be reimbursed upto the maximum limit of Rs.3000 per month per child. The limits would be automatically raised by 25% every time the Dearness Allowance on the revised pay bands goes up by 50%.
* Cycle Allowance, Washing Allowance, Cash Handling Allowance, Special Allowance, Night Duty Allowance and Split Duty Allowance have been doubled. Similarly, rates of allowances specific to different Ministries/Departments/Organisations not covered in this Report will also be doubled. The rates of these allowances will be increased by 25% every time the Dearness Allowance payable on revised pay scales goes up by 50%.
* All provisions concerning travel under LTC are to be retained except frequency of travel in home town concession (up to three times during the first two blocks of 4 years after joining the service).
* The revised allowances, other than dearness allowance, will be effective from 1st day of September, 2008.
ACP (Assured Career Progression):
* Three upgradations will be granted under Assured Career Progression (ACP) Scheme at 10, 20 and 30 years as per the modified ACP Scheme recommended by the Commission. ACP Scheme will also be applicable to Group A employees.
* Financial upgradation through ACP will be available whenever a person has spent 10 years continuously in the same grade.
* Benefit of pay fixation available at the time of normal promotion shall be allowed at the time of financial upgradations under the scheme. Thus, an increase of 3% of pay and grade pay shall be available as financial upgradation under the scheme.
Other Points accepted by the Government:
* The Commission’s recommendation regarding payment of arrears has been modified to the extent that the 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 Government has approved setting up of Anomalies Committees to examine individual, post-specific and cadre-specific anomalies. The Anomalies Committees should endeavour to complete their work in one year.
Recommendations not accepted by the Government in Sixth Pay Commission:
* Liberal ‘severance package’ for those employees who want to leave service without pension with more than 15, but less than 20 years of service.
* Recommendation relating to Holiday Policy that there should only be three closed holidays for Government employees.
* Flexi-hours for women employees and flexi-weeks for employees with disabilities.
Recommendations of Sixth CPC which will be examined separately :
* Recommendation related to Bonus and Over Time Allowance.
* Recommendation related to General Provident Fund for Central Government employees and Central Government Employees Group Insurance Scheme.
* Introduction of Health Insurance Scheme for Central Government employees and pensioners.
Sunday, September 14, 2008
OPTION FOR --- PAY FIXATION
When you have to fix your pay in the case of ACP/Promotion after 1.1.2006?
Service - 6pc matters
E-mail Print PDF
New Pay Fixation consequent on implementation of Sixth Pay Commission, is the raring topic among all Central Government Employees. The four important factors that are involved in the New Pay Fixation are our basic pay as on 1.1.2006, the pre-revised pay scale where we are placed now, date of our pre-revised increment and the date of New Pay fixation. We could see that any changes in these four factors will have an impact on our new pay as on Sept 2008 and the pay arrears for the period between 1.1.2006 to 31.8.08. Obviously, we have no option to change the first three factors, i.e. our basic pay as on 1.1.2006, pre-revised pay scale, and date of pre-revised increment. The other factor is the date of New Pay Fixation.
Those who have not got their promotion or ACP after 1.1.2006 or have no change in their pay scale after 1.1.2006, can either opt for pay fixation on 1.1.2006 or on the date of their pre-revised increment. Check New Pay Fixation on 1.1.2006 or on the date of increment - A Comparison for an in depth analysis on this aspect.
For those who have got ACP or promotion after 1.1.2006, the other option is they can also opt for fixing the new pay on the date of their ACP/Promotion if it is beneficial to them. We have now made a comparison of illustrative new pay fixation done for 12 employees. Let us assume that these employees have got their ACP/Promotion on the date of their pre-revised increment. The following table contains two sets of the their New pay as on Sept -2008 and Pay arrears, the one being the pay fixed on 1.1.2006 and the other being the pay fixed on the date of their ACP/Promotion.
Employee Old Pay details
Fixation on 1.1.2006 irrespective of date of promotion/ACP Fixation on the date of ACP/Promotion
Emp B.P on 1.1.2006 and Pay scale New Pay Scale on ACP /Promotion ACP /Promotion Year & Month Sept-08 Fixed Pay Arrears Sept-08 Fixed Pay Arrears
X1 7500 (6500-200-10500) HRA 30%, TA - Rs.1600 8000-275-13500 Feb 06 32638 160809 32586 158365
X2 April 06 32638 161869 32586 149935
X3 June 06 33347 176019 32586 141505
X4 Aug 06 32613 163498 33532 150126
Aug 07 32592 150006 35586 99531
Y1 12275 (10650-15850) HRA 30%, TA - Rs.3200 12000-375-16500 Feb 06 53684 263073 53386 254667
Y2 April 06 53684 263873 53386 240757
Y3 June 06 54841 286029 53386 226847
Y4 Aug 06 53638 264609 54904 240317
Aug 07 53604 242846 57999 158672
Z1 5000 (4000-100-6000)HRA 30%, TA - Rs.600 4500-125-7000 Feb 06 20561 99578 20382 95162
Z2 April 06 20561 99600 20382 89866
Z3 June 06 21042 108480 20382 84570
Z4 Aug 06 20542 99284 20987 90175
Aug 07 20539 90970 22231 60220
Service - 6pc matters
E-mail Print PDF
New Pay Fixation consequent on implementation of Sixth Pay Commission, is the raring topic among all Central Government Employees. The four important factors that are involved in the New Pay Fixation are our basic pay as on 1.1.2006, the pre-revised pay scale where we are placed now, date of our pre-revised increment and the date of New Pay fixation. We could see that any changes in these four factors will have an impact on our new pay as on Sept 2008 and the pay arrears for the period between 1.1.2006 to 31.8.08. Obviously, we have no option to change the first three factors, i.e. our basic pay as on 1.1.2006, pre-revised pay scale, and date of pre-revised increment. The other factor is the date of New Pay Fixation.
Those who have not got their promotion or ACP after 1.1.2006 or have no change in their pay scale after 1.1.2006, can either opt for pay fixation on 1.1.2006 or on the date of their pre-revised increment. Check New Pay Fixation on 1.1.2006 or on the date of increment - A Comparison for an in depth analysis on this aspect.
For those who have got ACP or promotion after 1.1.2006, the other option is they can also opt for fixing the new pay on the date of their ACP/Promotion if it is beneficial to them. We have now made a comparison of illustrative new pay fixation done for 12 employees. Let us assume that these employees have got their ACP/Promotion on the date of their pre-revised increment. The following table contains two sets of the their New pay as on Sept -2008 and Pay arrears, the one being the pay fixed on 1.1.2006 and the other being the pay fixed on the date of their ACP/Promotion.
Employee Old Pay details
Fixation on 1.1.2006 irrespective of date of promotion/ACP Fixation on the date of ACP/Promotion
Emp B.P on 1.1.2006 and Pay scale New Pay Scale on ACP /Promotion ACP /Promotion Year & Month Sept-08 Fixed Pay Arrears Sept-08 Fixed Pay Arrears
X1 7500 (6500-200-10500) HRA 30%, TA - Rs.1600 8000-275-13500 Feb 06 32638 160809 32586 158365
X2 April 06 32638 161869 32586 149935
X3 June 06 33347 176019 32586 141505
X4 Aug 06 32613 163498 33532 150126
Aug 07 32592 150006 35586 99531
Y1 12275 (10650-15850) HRA 30%, TA - Rs.3200 12000-375-16500 Feb 06 53684 263073 53386 254667
Y2 April 06 53684 263873 53386 240757
Y3 June 06 54841 286029 53386 226847
Y4 Aug 06 53638 264609 54904 240317
Aug 07 53604 242846 57999 158672
Z1 5000 (4000-100-6000)HRA 30%, TA - Rs.600 4500-125-7000 Feb 06 20561 99578 20382 95162
Z2 April 06 20561 99600 20382 89866
Z3 June 06 21042 108480 20382 84570
Z4 Aug 06 20542 99284 20987 90175
Aug 07 20539 90970 22231 60220
Saturday, September 13, 2008
6TH PAY COMMISSION -- ALLOWANCES
The government has increased the transport allowance. In Group A+/A category cities transport allowance for lowest employee will be Rs 600 while for other cities it will be Rs 400.
The central government employees were fearful that the government may accept reducing gazetted holidays to just three as suggested by the pay panel. Luckily for the central government employees the central government has turned down the proposal.
It is probably because of the anticipated backlash from 5.5 central government employees that government turned downed the proposal.
But government has significantly improved over the original suggestions of the sixth pay panel.
The final government notification says that rate of annual increment will be 3 percent instead of 2.5% as originally recommended by the pay commission.
The rate of variable increment for high achievers in PB-3 will be 4% instead of 3.5% recommended by the commission.
The government has removed campus restriction for grant of transport allowance. Consequently employees living in campuses will also be eligible for transport allowance. Further transport allowance for the employees at the lowest levels will be increased to Rs 600 from existing Rs 400 in A-1/A class cities and Rs 400 from existing Rs 300 in other towns.
The central government employees were fearful that the government may accept reducing gazetted holidays to just three as suggested by the pay panel. Luckily for the central government employees the central government has turned down the proposal.
It is probably because of the anticipated backlash from 5.5 central government employees that government turned downed the proposal.
But government has significantly improved over the original suggestions of the sixth pay panel.
The final government notification says that rate of annual increment will be 3 percent instead of 2.5% as originally recommended by the pay commission.
The rate of variable increment for high achievers in PB-3 will be 4% instead of 3.5% recommended by the commission.
The government has removed campus restriction for grant of transport allowance. Consequently employees living in campuses will also be eligible for transport allowance. Further transport allowance for the employees at the lowest levels will be increased to Rs 600 from existing Rs 400 in A-1/A class cities and Rs 400 from existing Rs 300 in other towns.
Saturday, August 30, 2008
SIXTH PAY COMMISSION GAZETTED NOTIFICATION( HIGHLIGHTES)
New Delhi, Aug 30, 2008: Finally Sixth Pay Commission has been implemented by the government as it issued notification with some significant changes. The government has improved significantly over the original draft presented by the 6th pay panel.
The central government employees were fearful that the government may accept reducing gazetted holidays to just three as suggested by the pay panel. Luckily for the central government employees the central government has turned down the proposal.
It is probably because of the anticipated backlash from 5.5 central government employees that government turned downed the proposal.
But government has significantly improved over the original suggestions of the sixth pay panel.
The final government notification says that rate of annual increment will be 3 percent instead of 2.5% as originally recommended by the pay commission.
The rate of variable increment for high achievers in PB-3 will be 4% instead of 3.5% recommended by the commission.
The government has removed campus restriction for grant of transport allowance. Consequently employees living in campuses will also be eligible for transport allowance. Further transport allowance for the employees at the lowest levels will be increased to Rs 600 from existing Rs 400 in A-1/A class cities and Rs 400 from existing Rs 300 in other towns.
Grade pay will determine seniority of posts only within a cadre’s hierarchy and not between various cadres.
With regard to fixation of pay in the revised pay bands, the basic pay drawn as on 1.1.2006 on the existing fifth CPC pay scales will be multiplied by a factor of 1.86 and then rounded off to next multiple of 10. This will be the pay in the revised running pay band. Grade pay as approved by the corresponding to the pre-revised pay scale will then be added to the pay in the revised pay band. The total of pay in the pay band and grade pay will be the revised basic pay as on 1.1.2006.
Three upgradation will be granted under assured career progression (ACP) scheme at 10, 20 and 30 years as per the modified ACP scheme recommended by the commission. ACP scheme will also be applicable to group A employees.
Administrative ministries concerned will take an administrative view on the recommendation of sixth pay commission in central paramilitary forces at the level of deputy inspector general (DIG) and above. The posts of additional DIGs upgraded to the grade of DIG will however be continued to be manned by the cadre officers of the CPMFs.
Empanelment and cadre reviews for Central Group A Services will be brought up to date within an year.’
Regarding group B cadres the commision’ recommendation will be modified in the following manner:
After 4 years of regular services in the entry grade of Rs 4800 in PB-2 officers belonging to Delhi and Andaman and Nicobar islands police service will be granted the non-functional grade of Rs 5400 in PB3 and not in PB-2.
After 4 years of regular service in the section officer/ private secretary/equivalent grade of Rs 4800 grade pay in PB-2 officers of central secretrait service, central secretrait stenographers service and other similarly placed HQ services will be granted the non-functional grade of Rs 5400 in PB3 and not in PB-2.
In the IA & AD and all organized accounts cadres, posts of section officers and Assistant Audit/ Account officers will be merged and placed in PB-2 with grade pay of 4800 as recommended by the commission. In modification of Sixth CPC’s recommendations, Audit/ Account (AO)officers will be placed in Pay Band2 with grade pay of Rs 5400 and senior Aos will be placed in PB-3 with grade pay of Rs 5400.
Group B officers of Ministry of railways in the pre revised scales of Rs 8000-13500 will be granted grade pay of Rs 5400 in PB-3 instead of PB-2.
Group B officers of Departments of Posts, Revenue etc will be granted Grade Pay of Rs 5400 in PB-2 on non- functional basis after 4 years of regular service in the grade pay of Rs 4800 in PB-2.
The commission’s recommendations and government decision thereon with regard to revised scales of pay and dearness allowance for civilian employees of the central government and personnel of all Indian services as detailed in Part A of annexe-1 will be made effective from 1st day of January 2006.
The revised allowances other than dearness allowance will be effective from 1st day of September 2008.
The commission’s recommendation regarding payment of arrears has been modified to the extent that the arrears will be paid in cash in two instalments- first instalment of 40% during the current financial year 2008-09 and the remaining 60 percent in the next financial year 2009-10.
The government has agreed to refer the recommendations of the commission in regard to pay scales of master craftsmen in the ministry of railways to fast track committee to be constituted by the government. In the meantime normal replacement scales will apply in the case of master craftsmen.
The government has approved setting up of anomalies committee to examine individual, post specific and cadre specific anomalies. The anomalies committee should endeavour to complete their work in one year.
The commission’s recommendations regarding higher pay packages of Rs 2.5 lakh and 3 lakh pm (without house and car) for chairperson and full time members of five specific regulatory bodies viz telecom regulatory authority of India, insurance regulatory and development authority, central regulatory commission, securities and exchange board of India and competition commission of India have been acceptd.
The government has agreed in principle approval to a scheme of allowances for CPMF officers of the rank of commandant and below and other ranks in the battalions deployed in difficult areas/counter insurgency areas and in high altitude areas keeping in view the allowances granted to defence forces personnel in such or similar areas and detachment and other allowances granted to the CPMF personnel at present to be worked out in consultation with department of expenditure.
The dynamic ACP scheme for doctors will be extended upto the senior administrative grade (Grade pay of Rs 10000 in pB-4) for medical doctors having 20 years of regular service, or seven years of regular service in he non functional selection grade of Rs 8700 grade in pay band –4.
The government while modifying the recommendations has accepted the suggestion of the pay panel for four pay bands with 20 grade pays.
Tags: 6th Pay Commission,Sixth Pay Commission latest News,Sixth Pay Commission
Source: http://www.khabrein.info/
The central government employees were fearful that the government may accept reducing gazetted holidays to just three as suggested by the pay panel. Luckily for the central government employees the central government has turned down the proposal.
It is probably because of the anticipated backlash from 5.5 central government employees that government turned downed the proposal.
But government has significantly improved over the original suggestions of the sixth pay panel.
The final government notification says that rate of annual increment will be 3 percent instead of 2.5% as originally recommended by the pay commission.
The rate of variable increment for high achievers in PB-3 will be 4% instead of 3.5% recommended by the commission.
The government has removed campus restriction for grant of transport allowance. Consequently employees living in campuses will also be eligible for transport allowance. Further transport allowance for the employees at the lowest levels will be increased to Rs 600 from existing Rs 400 in A-1/A class cities and Rs 400 from existing Rs 300 in other towns.
Grade pay will determine seniority of posts only within a cadre’s hierarchy and not between various cadres.
With regard to fixation of pay in the revised pay bands, the basic pay drawn as on 1.1.2006 on the existing fifth CPC pay scales will be multiplied by a factor of 1.86 and then rounded off to next multiple of 10. This will be the pay in the revised running pay band. Grade pay as approved by the corresponding to the pre-revised pay scale will then be added to the pay in the revised pay band. The total of pay in the pay band and grade pay will be the revised basic pay as on 1.1.2006.
Three upgradation will be granted under assured career progression (ACP) scheme at 10, 20 and 30 years as per the modified ACP scheme recommended by the commission. ACP scheme will also be applicable to group A employees.
Administrative ministries concerned will take an administrative view on the recommendation of sixth pay commission in central paramilitary forces at the level of deputy inspector general (DIG) and above. The posts of additional DIGs upgraded to the grade of DIG will however be continued to be manned by the cadre officers of the CPMFs.
Empanelment and cadre reviews for Central Group A Services will be brought up to date within an year.’
Regarding group B cadres the commision’ recommendation will be modified in the following manner:
After 4 years of regular services in the entry grade of Rs 4800 in PB-2 officers belonging to Delhi and Andaman and Nicobar islands police service will be granted the non-functional grade of Rs 5400 in PB3 and not in PB-2.
After 4 years of regular service in the section officer/ private secretary/equivalent grade of Rs 4800 grade pay in PB-2 officers of central secretrait service, central secretrait stenographers service and other similarly placed HQ services will be granted the non-functional grade of Rs 5400 in PB3 and not in PB-2.
In the IA & AD and all organized accounts cadres, posts of section officers and Assistant Audit/ Account officers will be merged and placed in PB-2 with grade pay of 4800 as recommended by the commission. In modification of Sixth CPC’s recommendations, Audit/ Account (AO)officers will be placed in Pay Band2 with grade pay of Rs 5400 and senior Aos will be placed in PB-3 with grade pay of Rs 5400.
Group B officers of Ministry of railways in the pre revised scales of Rs 8000-13500 will be granted grade pay of Rs 5400 in PB-3 instead of PB-2.
Group B officers of Departments of Posts, Revenue etc will be granted Grade Pay of Rs 5400 in PB-2 on non- functional basis after 4 years of regular service in the grade pay of Rs 4800 in PB-2.
The commission’s recommendations and government decision thereon with regard to revised scales of pay and dearness allowance for civilian employees of the central government and personnel of all Indian services as detailed in Part A of annexe-1 will be made effective from 1st day of January 2006.
The revised allowances other than dearness allowance will be effective from 1st day of September 2008.
The commission’s recommendation regarding payment of arrears has been modified to the extent that the arrears will be paid in cash in two instalments- first instalment of 40% during the current financial year 2008-09 and the remaining 60 percent in the next financial year 2009-10.
The government has agreed to refer the recommendations of the commission in regard to pay scales of master craftsmen in the ministry of railways to fast track committee to be constituted by the government. In the meantime normal replacement scales will apply in the case of master craftsmen.
The government has approved setting up of anomalies committee to examine individual, post specific and cadre specific anomalies. The anomalies committee should endeavour to complete their work in one year.
The commission’s recommendations regarding higher pay packages of Rs 2.5 lakh and 3 lakh pm (without house and car) for chairperson and full time members of five specific regulatory bodies viz telecom regulatory authority of India, insurance regulatory and development authority, central regulatory commission, securities and exchange board of India and competition commission of India have been acceptd.
The government has agreed in principle approval to a scheme of allowances for CPMF officers of the rank of commandant and below and other ranks in the battalions deployed in difficult areas/counter insurgency areas and in high altitude areas keeping in view the allowances granted to defence forces personnel in such or similar areas and detachment and other allowances granted to the CPMF personnel at present to be worked out in consultation with department of expenditure.
The dynamic ACP scheme for doctors will be extended upto the senior administrative grade (Grade pay of Rs 10000 in pB-4) for medical doctors having 20 years of regular service, or seven years of regular service in he non functional selection grade of Rs 8700 grade in pay band –4.
The government while modifying the recommendations has accepted the suggestion of the pay panel for four pay bands with 20 grade pays.
Tags: 6th Pay Commission,Sixth Pay Commission latest News,Sixth Pay Commission
Source: http://www.khabrein.info/
SIXTH PAY COMMISSION --- SOME POINTS ON NOTIFICATION
The notification means that the central government employees are all set to receive the revised pay as approved by the government from September 1, giving a much needed relief to central government employees who like others have been hit hard by increasing inflation and spiraling prices.
The implementation of the pay panel recommendations would require huge amount of money that experts say would increase the deficit. 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
It is being said that modification of the Pay Commission award will cost the exchequer an additional Rs 5,000 crore towards annual wages and Rs 6,000 crore towards arrears, said Expenditure Secretary Sushma Nath.
The notification issued by the government today says, “With regard to fixation of pay in the revised pay bands, the basic pay drawn as on 1.1.2006 on the existing fifth CPC pay scales will be multiplied by a factor of 1.86 and then rounded off to next multiple of 10. this will be the pay in the revised running pay band. Grade pay as approved by the corresponding to the pre-revised pay scale will then be added to the pay in the revised pay band. The total of pay in the pay band and grade pay will be the revised basic pay as on 1.1.2006.
Increment: rate of annual increment will be modified from 2.5% recommended by the commission to 3% and the rate of variable increment for high achievers in PB-3 will be 4% instead of 3.5% recommended by the commission.
Campus restriction for grant of transport allowance will be removed. Consequently employees living in campuses will also be eligible for transport allowance. Further transport allowance for the employees at the lowest levels will be increased to Rs 600 from existing Rs 400 in A-1/A class cities and Rs 400 from existing Rs 300 in other towns.
Three up gradation will be granted under assured career progression (ACP) scheme at 10, 20 and 30 years as per the modified ACP scheme recommended by the commission. ACP scheme will also be applicable to group A employees.
After 4 years of regular services in the entry grade of Rs 4800 in PB-2 officers belonging to Delhi and Andaman and Nicobar Islands police service will be granted the non-functional grade of Rs 5400 in PB3 and not in PB-2.
After 4 years of regular service in the section officer/ private secretary/equivalent grade of Rs 4800 grade pay in PB-2 officers of central secretariat service, central secretariat stenographers service and other similarly placed HQ services will be granted the non-functional grade of Rs 5400 in PB3 and not in PB-2.
The commission’s recommendation regarding payment of arrears has been modified to the extent that the arrears will be paid in cash in two installments - first installment of 40% during the current financial year 2008-09 and the remaining 60 percent in the next financial year 2009-10.
Notification of sixth pay commission exhibits huge anomalies and differences in pay enhancements of class III &class II. Anomalies are as follows:-
1) IN class I grade pay has been exorbitantly changed but same has not been done for class III & class II. For example grade pay of class I of 6100 has been changed to 6600, 6600 to 7600 7600 to 8700, 9000to 10000, 11000 to %of whole structure and 12000.WHY SO GREAT DICRIMINATIO WITH CLASS III&CLASS II WHICH CONSTITUTE95% of total workforce and are the real earner of all department where as class one has nothing to do except seating in ac chamber pastime.
2) Class I employees will get to additional increment on promotion but the same are not available for class III & class II employees.
3) Pay band of all class one has been exorbitantly enhanced but poor class III & class II has been provided to live on bras and salt to survive in this great inflationary 13% economy.
IF GEADE PAY OF CLASS III AND CLASS II IS NOT INCREASED THIS IMPLEMENTATION HAS NO MEANING FOR OUR BROTHRENS.BE PREPARED FOR AGITATION AGAINST THIS TORTUROUS DISCRIMINATION.
The implementation of the pay panel recommendations would require huge amount of money that experts say would increase the deficit. 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
It is being said that modification of the Pay Commission award will cost the exchequer an additional Rs 5,000 crore towards annual wages and Rs 6,000 crore towards arrears, said Expenditure Secretary Sushma Nath.
The notification issued by the government today says, “With regard to fixation of pay in the revised pay bands, the basic pay drawn as on 1.1.2006 on the existing fifth CPC pay scales will be multiplied by a factor of 1.86 and then rounded off to next multiple of 10. this will be the pay in the revised running pay band. Grade pay as approved by the corresponding to the pre-revised pay scale will then be added to the pay in the revised pay band. The total of pay in the pay band and grade pay will be the revised basic pay as on 1.1.2006.
Increment: rate of annual increment will be modified from 2.5% recommended by the commission to 3% and the rate of variable increment for high achievers in PB-3 will be 4% instead of 3.5% recommended by the commission.
Campus restriction for grant of transport allowance will be removed. Consequently employees living in campuses will also be eligible for transport allowance. Further transport allowance for the employees at the lowest levels will be increased to Rs 600 from existing Rs 400 in A-1/A class cities and Rs 400 from existing Rs 300 in other towns.
Three up gradation will be granted under assured career progression (ACP) scheme at 10, 20 and 30 years as per the modified ACP scheme recommended by the commission. ACP scheme will also be applicable to group A employees.
After 4 years of regular services in the entry grade of Rs 4800 in PB-2 officers belonging to Delhi and Andaman and Nicobar Islands police service will be granted the non-functional grade of Rs 5400 in PB3 and not in PB-2.
After 4 years of regular service in the section officer/ private secretary/equivalent grade of Rs 4800 grade pay in PB-2 officers of central secretariat service, central secretariat stenographers service and other similarly placed HQ services will be granted the non-functional grade of Rs 5400 in PB3 and not in PB-2.
The commission’s recommendation regarding payment of arrears has been modified to the extent that the arrears will be paid in cash in two installments - first installment of 40% during the current financial year 2008-09 and the remaining 60 percent in the next financial year 2009-10.
Notification of sixth pay commission exhibits huge anomalies and differences in pay enhancements of class III &class II. Anomalies are as follows:-
1) IN class I grade pay has been exorbitantly changed but same has not been done for class III & class II. For example grade pay of class I of 6100 has been changed to 6600, 6600 to 7600 7600 to 8700, 9000to 10000, 11000 to %of whole structure and 12000.WHY SO GREAT DICRIMINATIO WITH CLASS III&CLASS II WHICH CONSTITUTE95% of total workforce and are the real earner of all department where as class one has nothing to do except seating in ac chamber pastime.
2) Class I employees will get to additional increment on promotion but the same are not available for class III & class II employees.
3) Pay band of all class one has been exorbitantly enhanced but poor class III & class II has been provided to live on bras and salt to survive in this great inflationary 13% economy.
IF GEADE PAY OF CLASS III AND CLASS II IS NOT INCREASED THIS IMPLEMENTATION HAS NO MEANING FOR OUR BROTHRENS.BE PREPARED FOR AGITATION AGAINST THIS TORTUROUS DISCRIMINATION.
GAZETTED NOTIFICATION --- SIXTH PAY COMMISSION
Over 50 lakh government employees, including the armed forces personnel, will be receiving an enhanced pay packet beginning September 1, with the government today notifying the revised recommendations of the Sixth Central Pay Commission (CPC).
The much-awaited CPC proposals had received a seal of approval from the union cabinet a fortnight ago after it amended certain recommendations of the Justice Sri Krishna-led Pay Commission that submitted its report to the government on March 24 this year.
The CPC recommendations and the subsequent governemnt decision with regard to revised scales of pay and dearness allowance for civilian employees of the central government would be made retrospectively effective from January 1, 2006, the notification said.
However, the revised allowances, other than dearness allowance, would be effective only from September 1 this year. On payment of arrears, the government has modified to the extent that the arrears would be paid in cash in two instalments - first instalment of 40 per cent this financial year (2008-09) and the remaining 60 per cent in the next financial year (2009-10).
The much-awaited CPC proposals had received a seal of approval from the union cabinet a fortnight ago after it amended certain recommendations of the Justice Sri Krishna-led Pay Commission that submitted its report to the government on March 24 this year.
The CPC recommendations and the subsequent governemnt decision with regard to revised scales of pay and dearness allowance for civilian employees of the central government would be made retrospectively effective from January 1, 2006, the notification said.
However, the revised allowances, other than dearness allowance, would be effective only from September 1 this year. On payment of arrears, the government has modified to the extent that the arrears would be paid in cash in two instalments - first instalment of 40 per cent this financial year (2008-09) and the remaining 60 per cent in the next financial year (2009-10).
Thursday, August 28, 2008
SIXTH PAY COMMISSION --- NOTIFICATION
The much-awaited official notification of the revised central government pay rules is expected to be issued this Friday. The notification with regard to the Sixth Pay Commission award is ready and is currently being approved by statutory authorities.
Sources said the dearness allowance effective this July is also likely to be announced the same day.
On August 14, the Union Cabinet had approved an improved and tweaked version of the Sixth Pay Commission award with effect from January 1, 2006.
Consequently, an estimated 4.6 million central government employees will receive a raise of 28-40 per cent over their existing basic pay. Employees will start receiving their higher salaries and allowances with effect from this September.
Sources added the first instalment of arrears of Rs 11,748 crore will be paid in cash with effect from September as announced earlier. There had been some apprehensions that with the upcoming fifteenth session of the Lok Sabha scheduled to begin on October 17, Parliamentary sanction for the additional spending sought under the supplementary demand for grants would somehow delay the arrears payment.
However, sources said the arrears would be paid from the salary account of the government.
The Cabinet had decided to issue arrears in cash over two years — 2008-09 and 2009-10 — with the first instalment of 40 per cent being paid by September and the balance next year.
As a consequence of the revised salaries and allowances, the central government's wage bill is expected to increase 21 per cent on account of an additional expenditure of Rs 22,100 crore in the current financial year (2008-09). Of this, Rs 15,700 crore will be accounted for by the central government employees and Rs 6,400 crore by the railway staff.
Of the Rs 15,700 crore, the first installment of arrears will account for Rs 8,048 crore. Of the Rs 6,400 crore impact on the railway budget, Rs 3,700 crore will be arrears.
The annualised impact of the new salary structure is estimated at Rs 17,798 crore, adding to the approximate Rs 1,04,000 crore annual pay, allowances and pension bill of the Centre.
(Source: Business Standard 28.8.08)
Sources said the dearness allowance effective this July is also likely to be announced the same day.
On August 14, the Union Cabinet had approved an improved and tweaked version of the Sixth Pay Commission award with effect from January 1, 2006.
Consequently, an estimated 4.6 million central government employees will receive a raise of 28-40 per cent over their existing basic pay. Employees will start receiving their higher salaries and allowances with effect from this September.
Sources added the first instalment of arrears of Rs 11,748 crore will be paid in cash with effect from September as announced earlier. There had been some apprehensions that with the upcoming fifteenth session of the Lok Sabha scheduled to begin on October 17, Parliamentary sanction for the additional spending sought under the supplementary demand for grants would somehow delay the arrears payment.
However, sources said the arrears would be paid from the salary account of the government.
The Cabinet had decided to issue arrears in cash over two years — 2008-09 and 2009-10 — with the first instalment of 40 per cent being paid by September and the balance next year.
As a consequence of the revised salaries and allowances, the central government's wage bill is expected to increase 21 per cent on account of an additional expenditure of Rs 22,100 crore in the current financial year (2008-09). Of this, Rs 15,700 crore will be accounted for by the central government employees and Rs 6,400 crore by the railway staff.
Of the Rs 15,700 crore, the first installment of arrears will account for Rs 8,048 crore. Of the Rs 6,400 crore impact on the railway budget, Rs 3,700 crore will be arrears.
The annualised impact of the new salary structure is estimated at Rs 17,798 crore, adding to the approximate Rs 1,04,000 crore annual pay, allowances and pension bill of the Centre.
(Source: Business Standard 28.8.08)
Tuesday, August 26, 2008
ALLOWANCES --- 6TH PAY COMMISSION
New Delhi, Aug 27, 2008: Following are the list of allowances as suggested by Sixth Pay Commission:
4.1.3 The Fifth Central Pay Commission recommended uniform neutralization of DA at 100% to employees at all levels; conversion of DA into Dearness Pay each time the CPI increases by 50% over the base index with Dearness Pay counting for all purposes including retirement benefits; and Dearness Allowance including Dearness Pay being paid net of tax. The Commission did not favor the option of employing separate indices for each category of employee because of the sheer impracticality of the task and, therefore, recommended using the 12 monthly average of All India CPI (IW) with base 1982 for calculating DA.
• DA should be paid net of taxes on the same line asrecommended by the 5th CPC to make the concept of 100% neutralization somewhat meaningful. Determining the level of inflationmethodology 4.1.7 While considering the issue of the quantum of DA admissible, the Commission considered at length the procedure for estimation of inflation. Presently, inflation as determined by the AICPI (IW), is estimated using the Laspeyere’s Fixed base methodology. The inflation index using this methodology captures the cost of buying a basket of goods (fixed in the base year) at current prices relative to the cost of buying the same basket of goods at base year prices.
4.1.11 Presently, the estimation of DA for Central Government Employees is based on the movements in the AICPI (IW) (1982=100). The Fourth Central Pay Commission, while considering the issue of suitability of the AICPI, opined that the Government should examine whether a more suitable index could be prepared for Government employees taking into account their consumption pattern and other relevant factors. This recommendation was based on the view that the AICPI does not truly represent the consumption pattern of all central Government employees. On the other hand, the Fifth Central Pay Commission took the view that consumption patterns of Group A,B,C,D employees within Government are bound to be different due to different income levels and hence a suitable index based on consumption pattern for Government employees as recommended by the Fourth Central Pay Commission is likely to suffer from the same set of problems which the AICPI(IW) suffers. The Fifth Central Pay Commission opined that even though the option of employing separate indices for each category of employees did exist, it was devoid of merit because of the sheer impracticality of the task as well as needless suspicion such an arrangement was likely to arouse between various groups. Therefore, they recommended that the AICPI (IW) should continue to be the index used for calculating DA for Government employees.4.1.15 The rate of dearness allowance is calculated in terms of the percentage increase in 12 monthly average of AICPI (base 1982) over the average index of 306.33, which was the reference base for the existing scales of pay recommended by the Fifth Central Pay Commission.
4.2.4 City Compensatory Allowance (CCA) is granted to Central Government employees to adjust the high cost of living in certain specified localities.
4.2.9 Special Compensatory Allowance (Hill Areas/Remote Locality/Border Area/Gandhinagar) - Special Compensatory Allowances are paid on account of exceptionally difficult local conditions in various places.
4.2.10 Hill Area allowance - It is granted to Central Government employees posted at Hill stations located at an altitude of 1000 Mtrs. or more above sea level. The rates of Special Compensatory (Hill Area) Allowance vary between Rs.40 to Rs.300 per month. 4.2.11 Special Compensatory (Remote Locality) Allowance - It is payable to the employees serving in specified remote localities at rates varying between Rs.40 to Rs.1300 per month.
4.2.17 Tribal Area Allowance – It is paid in certain Tribal Talukas and pockets in certain States and is payable at rates varying between Rs.40 to Rs.200 per month.
The rates of all the components of Daily Allowance shall automatically increase by 25% whenever the Dearness Allowance payable on the revised pay bands goes up by 50%.
4.2.44 Simultaneously, the existing condition which prohibits grant of Transport Allowance to the employees who have been provided with official accommodation within one Kilometer of the office should also be removed because this creates an artificial distinction between the employees living in private accommodation within one Kilometer of the office vis-Ã -vis those living within one Kilometer of the office in Government accommodation. Other conditions regulating the grant of this allowance shall remain unchanged. Physically disabled employees shall continue to draw this allowance at double the normal rates. This, however, will be further subject to the condition that Transport Allowance in the case of physically disabled employees shall, in no case, be less than Rs.1000 per month plus the applicable rate of dearness allowance. Employees in pay band PB-4 who are entitled to the use of official car for travel between residence and office may be given the option to draw transport allowance at a higher rate of Rs.7000 p.m. plus dearness allowance provided they give up the use of official car for travel between residence and office.
Non-Practicing
4.2.45 Presently, Doctors are given Non-Practicing Allowance (NPA) at the rate of 25% of the basic pay subject to the condition that NPA + basic pay + dearness pay does not exceed Rs.44,250. NPA is counted as pay for all service and pensionary benefits.
4.2.55 The Fifth CPC had recommended a high increase in the HRA of Metropolitan towns like Delhi & Mumbai in view of the inordinate increase in monthly rents for residential accommodation in the period upto 1995 in these cities. The Fifth CPC also persisted with the population criteria for classification of cities and towns and recommended creation of a new category of A-1 cities for cities having a population of 50 lakh and above.
Demands 4.2.56 The Commission has received many demands relating to payment of HRA. Most of the demands seek an increase in the rates of HRA especially in cities other than A-1. Demands have also been received for granting A-1 status to the cities of Bengaluru and Hyderabad. This demand was, however, conceded by the Government during the term of the Commission and Bengaluru and Hyderabad already stand classified as A-1 cities.
Risk Allowance 4.2.65 Risk Allowance is presently given to employees engaged in hazardous duties or whose work will have deleterious effect on
health over a period of time. Risk Allowance is also paid to
Sweepers and Safaiwalas engaged in cleaning of underground
drains, sewer lines as well as to the employees working in trenching
grounds and infectious diseases hospitals.
The Commission, recommends continuation of the five day week in the offices of the Central Government. Holiday policy 4.5.6 As regards the issue of holidays, there can be no rationale for observing a large number of closed holidays in the Government along with a five day week. It is also very true that in a secular nation, religious festivals should be treated as personal to each individual employee without the Government offices having to be closed on that account. Keeping in view the recommendations of
the Fifth Central Pay Commission in this regard, the Commission 270 recommends that, henceforth, the Government offices should remain closed only on the 3 National holidays. No other closed holidays should be allowed. To enable the Government employees the freedom to celebrate their festivals and other
occasions of special significance to them, the number of
Restricted Holidays available to an employee shall be increased
to 8 with the list of Restricted Holidays being suitably enlarged
to include all the erstwhile Gazetted Holidays therein.
4.7.2 Keeping in view the dual responsibilities borne by working
women and the increasing practical difficulties in balancing work
and family responsibilities, previous Pay Commissions made
recommendations for providing special facilities for women in terms
of provision of residential accommodation for single women,
provision of transport facilities, introduction of concepts such as
flexi-time and flexi-place on trial basis, options for working half
time during the period that children are young , etc. The provisions
made by the Central Government for women employees include age
relaxation for appointment in Group ‘C’ and ‘D’ posts, exemption
from educational qualifications for compassionate appointments to
widows of deceased Government employees, maternity and
paternity leave benefits, guidelines for provision of crèche facilities
as well as for posting of husband and wife at the same station.
Demands of the Staff Side
Recommendations 4.7.5 The Commission has studied the facilities provided in other
countries and taken into account the demands made in this regard.
It is the considered opinion of the Commission that adequate
facilities need to be provided to ensure that more women take up public employment and to enable them to balance the dual responsibilities of looking after children and work. In pursuance of this, the Commission makes the following recommendations: -
(i) The concept of staggered working hours needs to be introduced for women employees as it would give flexibility to employees to work either early or late depending on their requirements at the home front. Under this scheme, 11 AM to 4 PM will be core hours during which all women employees will necessarily need to be present in the office. They will, however, have the option of either coming upto one and a half hours earlier or
leaving upto two hours late depending upon the actual time
they have clocked in.
(ii) The concept of child care leave exists in countries like Japan & Netherlands where women employees are allowed leave to look after the needs of their children. A similar facility needs to be extended in Central Government as it will facilitate women employees to take care of their children at the time of need. All women employees having minor children may, therefore, be allowed total leave of upto two years (i.e. 730 days) for taking care of upto 2 children whether for rearing the children or looking after any of their needs like examination, sickness, etc. Child care leave should also be allowed for the third year as leave not due. However, no child care leave shall be given for a child who is eighteen years of age or older.
(iii) Although instructions exist in regard to setting up of daycare- centers/crèches in offices or major residential areas, most Departments have not created such facilities. The setting up of these crèches should be made mandatory in offices where the employees, male and female, have preschool or primary school going children. This will enable male employees also to keep their children in such crèches. These crèches could also be run on contributory basis so that appropriate standard of facilities is maintained.
(iv) Maternity leave of 135 days is presently permitted to women employees for two children. Further, leave up to a 279 period of one year can be availed of in continuation of maternity leave. Keeping in view the guidelines of Ministry of Health & FW which recommends nursing of children till the age of 6 months, the Commission recommends that maternity leave should be increased from 135 days at present to 180 days. Further, the period of leave which can be availed of in continuation of maternity leave should be increased to 2 years instead of one year at present.
Medical facilities for serving employees & pensioners
Introduction 4.11.1 Presently, serving Government employees paid from civil estimates other than those working in Railways and Delhi
Administration are covered under the Central Government Health
Scheme (CGHS) which is a compulsory scheme for all Central
Government employees residing within the area covered by the
CGHS Dispensaries. CGHS is a contributory scheme and the
Government employees have to contribute varying sums between
Rs.15 to Rs.150 p.m. for this facility. Pensioners/family pensioners
can also avail CGHS facilities on payment of registration fee. It is
not necessary for pensioners/family pensioners to be living in the
areas covered under the CGHS for joining it. Railways and Defence
have their own medical infrastructure and their
employees/pensioners are not covered under CGHS. Presently, the
coverage of CGHS is available in 24 cities. Central Government
employees living outside these cities are not covered under CGHS.
Employees and their family members living outside the CGHS
areas are entitled to reimbursement for medical attendance and
treatment under the Central Services (Medical Attendance) Rules
[CS(MA) Rules]. These CS (MA) Rules, however, are available
only to the serving Government employees and the pensioners are
not covered under these rules. Pensioners living in non-CGHS
areas are allowed a sum of Rs.100 p.m. for meeting their medical
expenditure that does not require hospitalization. The amount of
Rs.100 was recommended by the Fifth CPC and has remained
unchanged since then. Pensioners living in non-CGHS areas are,
however, eligible for reimbursement of expenditure incurred on
hospitalization in accordance with the prescribed rules.
Demands 4.11.2 Some associations of Government employees in their
submissions to the Commission have lamented the poor quality of
service available under CGHS and sought an alternative to it. The
Central Government pensioners living in non-CGHS areas and
their associations have demanded reimbursement of medical
expenditure under the CS (MA) Rules on par with what is available
to the serving employees. Substantial enhancement in the amount
Chapter 4.11
323
of medical allowance of Rs.100 presently payable to pensioners
living in non-CGHS areas has also been demanded.
Analysis and
recommendations
4.11.3 The Commission is aware that there is increasing pressure
on CGHS which sometimes results in less than satisfactory services
being provided to its beneficiaries. On the obverse, CGHS is
appreciated by a number of employees and most of the pensioners.
In fact, most of the pensioners associations, in their submissions to
the Commission, have requested continuance of CGHS facilities.
The need of the hour may, therefore, be to retain the existing
scheme of CGHS while simultaneously providing optional inpatient
facilities (IPD) through medical insurance. This will
provide an alternative to such of those employees/ pensioners who
are not satisfied or are not living in the areas covered by CGHS.
The Commission, therefore, recommends that the Government
should revise entitlements for treatment in IPD for CGHS card
holders so that private ward facilities are available at least to the
employees in PB-2 pay band. The Commission is not in favour of
extending CS(MA) Rules to the pensioners as not only it will
prove to be very costly (estimates given by the Government peg
it at Rs.1,820 crore p.a.) but will also suffer from problems
relating to submission of bills, its verification and subsequent
payment, etc. This will pose additional problems for the
pensioners claiming reimbursement and will generate additional
administrative work with attendant problems for the
Government. The Commission is of the view that an insurance
scheme should be devised for meeting the OPD needs as well. In
the interregnum, the Government should consider enhancing the
amount of medical allowance for pensioners living in non-CGHS
areas appropriately.
Health insurance for Government employees & pensioners
4.11.4 Availability of health service providers in the private sector
has increased discernibly in the recent past. Therefore, making
available the in-patient facilities through a set up outside CGHS is
now viable. CGHS, by way of referrals, is already using this both
private and Government network. CS (MA) Rules, in any case,
operate through a system of Authorized Medical Attendants
(AMA) where adequate number of Government Doctors is not
available. CS (MA) Rules also provide for a set of empanelled
hospitals where the concerned employees can take treatment. The
Commission was informed that the Government is in the final
stages of introducing a health insurance scheme for its employees
so as to provide them with wider facilities and quality health care
without directly burdening the Government with the
administrative responsibility of verifying bills and/or expanding
public sector medical infrastructure. The scheme being formulated
by the Government, however, had not been formalized till the time
of finalization of this Report. Accordingly, the Commission is
324
recommending a scheme of health insurance for Central
Government employees and pensioners in this Report.
Recommendations 4.11.5 The Commission, accordingly, recommends introduction
of a Health Insurance Scheme for Central Government
employees/pensioners as under :-
i) For the existing employees and pensioners, the Insurance
Scheme would be available on voluntary basis subject to
paying the prescribed contribution. Contributions should
be based on the actual premium paid. Group A, B and C
employees should contribute 30%, 25% and 20% of the
annual premium respectively with the Government
paying the remainder. This arrangement should be
reviewed periodically.
ii) The Health Insurance Scheme would be compulsory for
new Government employees who would be joining
service after the introduction of the Scheme. Similarly,
new retirees after the introduction of the Insurance
Scheme would be covered under the Scheme. The new
recruits and pensioners will consequently not be provided
CGHS / CS (MA) facilities. The new recruits and the new
retirees may be paid an appropriate amount for meeting
their OPD expenditure till the time an insurance scheme
for providing OPD facilities is devised.
iii) Serving employees and existing pensioners shall have the
option to opt out of CGHS and subscribe only to the
Insurance Scheme, thus making their own arrangements
for OPD needs. In such cases, they will not pay
contributions to the CGHS. On par with new recruits,
they will need to contribute only the amounts prescribed
for similarly placed class of employees/pensioners under
CGHS and may also be paid an appropriate amount for
their OPD expenditure till the time an insurance scheme
for providing OPD facilities is devised. The serving
employees in non-CGHS areas may also opt for Health
Insurance Scheme and subscribe to the same.
iv) All personnel of the Central Government including All
India Service officers, serving and retired, and others who
are covered under the existing CGHS and under CS (MA)
Rules may be offered the health insurance scheme on a
voluntary basis.
Railways &
Defence
(combatants)
4.11.6 The aforesaid scheme has been recommended for
Government employees paid from civil estimates other than those
working in Railways. However, Railways and Defence
(combatants), who are having their own medical infrastructure,
should also devise a similar scheme for their employees.
4.1.3 The Fifth Central Pay Commission recommended uniform neutralization of DA at 100% to employees at all levels; conversion of DA into Dearness Pay each time the CPI increases by 50% over the base index with Dearness Pay counting for all purposes including retirement benefits; and Dearness Allowance including Dearness Pay being paid net of tax. The Commission did not favor the option of employing separate indices for each category of employee because of the sheer impracticality of the task and, therefore, recommended using the 12 monthly average of All India CPI (IW) with base 1982 for calculating DA.
• DA should be paid net of taxes on the same line asrecommended by the 5th CPC to make the concept of 100% neutralization somewhat meaningful. Determining the level of inflationmethodology 4.1.7 While considering the issue of the quantum of DA admissible, the Commission considered at length the procedure for estimation of inflation. Presently, inflation as determined by the AICPI (IW), is estimated using the Laspeyere’s Fixed base methodology. The inflation index using this methodology captures the cost of buying a basket of goods (fixed in the base year) at current prices relative to the cost of buying the same basket of goods at base year prices.
4.1.11 Presently, the estimation of DA for Central Government Employees is based on the movements in the AICPI (IW) (1982=100). The Fourth Central Pay Commission, while considering the issue of suitability of the AICPI, opined that the Government should examine whether a more suitable index could be prepared for Government employees taking into account their consumption pattern and other relevant factors. This recommendation was based on the view that the AICPI does not truly represent the consumption pattern of all central Government employees. On the other hand, the Fifth Central Pay Commission took the view that consumption patterns of Group A,B,C,D employees within Government are bound to be different due to different income levels and hence a suitable index based on consumption pattern for Government employees as recommended by the Fourth Central Pay Commission is likely to suffer from the same set of problems which the AICPI(IW) suffers. The Fifth Central Pay Commission opined that even though the option of employing separate indices for each category of employees did exist, it was devoid of merit because of the sheer impracticality of the task as well as needless suspicion such an arrangement was likely to arouse between various groups. Therefore, they recommended that the AICPI (IW) should continue to be the index used for calculating DA for Government employees.4.1.15 The rate of dearness allowance is calculated in terms of the percentage increase in 12 monthly average of AICPI (base 1982) over the average index of 306.33, which was the reference base for the existing scales of pay recommended by the Fifth Central Pay Commission.
4.2.4 City Compensatory Allowance (CCA) is granted to Central Government employees to adjust the high cost of living in certain specified localities.
4.2.9 Special Compensatory Allowance (Hill Areas/Remote Locality/Border Area/Gandhinagar) - Special Compensatory Allowances are paid on account of exceptionally difficult local conditions in various places.
4.2.10 Hill Area allowance - It is granted to Central Government employees posted at Hill stations located at an altitude of 1000 Mtrs. or more above sea level. The rates of Special Compensatory (Hill Area) Allowance vary between Rs.40 to Rs.300 per month. 4.2.11 Special Compensatory (Remote Locality) Allowance - It is payable to the employees serving in specified remote localities at rates varying between Rs.40 to Rs.1300 per month.
4.2.17 Tribal Area Allowance – It is paid in certain Tribal Talukas and pockets in certain States and is payable at rates varying between Rs.40 to Rs.200 per month.
The rates of all the components of Daily Allowance shall automatically increase by 25% whenever the Dearness Allowance payable on the revised pay bands goes up by 50%.
4.2.44 Simultaneously, the existing condition which prohibits grant of Transport Allowance to the employees who have been provided with official accommodation within one Kilometer of the office should also be removed because this creates an artificial distinction between the employees living in private accommodation within one Kilometer of the office vis-Ã -vis those living within one Kilometer of the office in Government accommodation. Other conditions regulating the grant of this allowance shall remain unchanged. Physically disabled employees shall continue to draw this allowance at double the normal rates. This, however, will be further subject to the condition that Transport Allowance in the case of physically disabled employees shall, in no case, be less than Rs.1000 per month plus the applicable rate of dearness allowance. Employees in pay band PB-4 who are entitled to the use of official car for travel between residence and office may be given the option to draw transport allowance at a higher rate of Rs.7000 p.m. plus dearness allowance provided they give up the use of official car for travel between residence and office.
Non-Practicing
4.2.45 Presently, Doctors are given Non-Practicing Allowance (NPA) at the rate of 25% of the basic pay subject to the condition that NPA + basic pay + dearness pay does not exceed Rs.44,250. NPA is counted as pay for all service and pensionary benefits.
4.2.55 The Fifth CPC had recommended a high increase in the HRA of Metropolitan towns like Delhi & Mumbai in view of the inordinate increase in monthly rents for residential accommodation in the period upto 1995 in these cities. The Fifth CPC also persisted with the population criteria for classification of cities and towns and recommended creation of a new category of A-1 cities for cities having a population of 50 lakh and above.
Demands 4.2.56 The Commission has received many demands relating to payment of HRA. Most of the demands seek an increase in the rates of HRA especially in cities other than A-1. Demands have also been received for granting A-1 status to the cities of Bengaluru and Hyderabad. This demand was, however, conceded by the Government during the term of the Commission and Bengaluru and Hyderabad already stand classified as A-1 cities.
Risk Allowance 4.2.65 Risk Allowance is presently given to employees engaged in hazardous duties or whose work will have deleterious effect on
health over a period of time. Risk Allowance is also paid to
Sweepers and Safaiwalas engaged in cleaning of underground
drains, sewer lines as well as to the employees working in trenching
grounds and infectious diseases hospitals.
The Commission, recommends continuation of the five day week in the offices of the Central Government. Holiday policy 4.5.6 As regards the issue of holidays, there can be no rationale for observing a large number of closed holidays in the Government along with a five day week. It is also very true that in a secular nation, religious festivals should be treated as personal to each individual employee without the Government offices having to be closed on that account. Keeping in view the recommendations of
the Fifth Central Pay Commission in this regard, the Commission 270 recommends that, henceforth, the Government offices should remain closed only on the 3 National holidays. No other closed holidays should be allowed. To enable the Government employees the freedom to celebrate their festivals and other
occasions of special significance to them, the number of
Restricted Holidays available to an employee shall be increased
to 8 with the list of Restricted Holidays being suitably enlarged
to include all the erstwhile Gazetted Holidays therein.
4.7.2 Keeping in view the dual responsibilities borne by working
women and the increasing practical difficulties in balancing work
and family responsibilities, previous Pay Commissions made
recommendations for providing special facilities for women in terms
of provision of residential accommodation for single women,
provision of transport facilities, introduction of concepts such as
flexi-time and flexi-place on trial basis, options for working half
time during the period that children are young , etc. The provisions
made by the Central Government for women employees include age
relaxation for appointment in Group ‘C’ and ‘D’ posts, exemption
from educational qualifications for compassionate appointments to
widows of deceased Government employees, maternity and
paternity leave benefits, guidelines for provision of crèche facilities
as well as for posting of husband and wife at the same station.
Demands of the Staff Side
Recommendations 4.7.5 The Commission has studied the facilities provided in other
countries and taken into account the demands made in this regard.
It is the considered opinion of the Commission that adequate
facilities need to be provided to ensure that more women take up public employment and to enable them to balance the dual responsibilities of looking after children and work. In pursuance of this, the Commission makes the following recommendations: -
(i) The concept of staggered working hours needs to be introduced for women employees as it would give flexibility to employees to work either early or late depending on their requirements at the home front. Under this scheme, 11 AM to 4 PM will be core hours during which all women employees will necessarily need to be present in the office. They will, however, have the option of either coming upto one and a half hours earlier or
leaving upto two hours late depending upon the actual time
they have clocked in.
(ii) The concept of child care leave exists in countries like Japan & Netherlands where women employees are allowed leave to look after the needs of their children. A similar facility needs to be extended in Central Government as it will facilitate women employees to take care of their children at the time of need. All women employees having minor children may, therefore, be allowed total leave of upto two years (i.e. 730 days) for taking care of upto 2 children whether for rearing the children or looking after any of their needs like examination, sickness, etc. Child care leave should also be allowed for the third year as leave not due. However, no child care leave shall be given for a child who is eighteen years of age or older.
(iii) Although instructions exist in regard to setting up of daycare- centers/crèches in offices or major residential areas, most Departments have not created such facilities. The setting up of these crèches should be made mandatory in offices where the employees, male and female, have preschool or primary school going children. This will enable male employees also to keep their children in such crèches. These crèches could also be run on contributory basis so that appropriate standard of facilities is maintained.
(iv) Maternity leave of 135 days is presently permitted to women employees for two children. Further, leave up to a 279 period of one year can be availed of in continuation of maternity leave. Keeping in view the guidelines of Ministry of Health & FW which recommends nursing of children till the age of 6 months, the Commission recommends that maternity leave should be increased from 135 days at present to 180 days. Further, the period of leave which can be availed of in continuation of maternity leave should be increased to 2 years instead of one year at present.
Medical facilities for serving employees & pensioners
Introduction 4.11.1 Presently, serving Government employees paid from civil estimates other than those working in Railways and Delhi
Administration are covered under the Central Government Health
Scheme (CGHS) which is a compulsory scheme for all Central
Government employees residing within the area covered by the
CGHS Dispensaries. CGHS is a contributory scheme and the
Government employees have to contribute varying sums between
Rs.15 to Rs.150 p.m. for this facility. Pensioners/family pensioners
can also avail CGHS facilities on payment of registration fee. It is
not necessary for pensioners/family pensioners to be living in the
areas covered under the CGHS for joining it. Railways and Defence
have their own medical infrastructure and their
employees/pensioners are not covered under CGHS. Presently, the
coverage of CGHS is available in 24 cities. Central Government
employees living outside these cities are not covered under CGHS.
Employees and their family members living outside the CGHS
areas are entitled to reimbursement for medical attendance and
treatment under the Central Services (Medical Attendance) Rules
[CS(MA) Rules]. These CS (MA) Rules, however, are available
only to the serving Government employees and the pensioners are
not covered under these rules. Pensioners living in non-CGHS
areas are allowed a sum of Rs.100 p.m. for meeting their medical
expenditure that does not require hospitalization. The amount of
Rs.100 was recommended by the Fifth CPC and has remained
unchanged since then. Pensioners living in non-CGHS areas are,
however, eligible for reimbursement of expenditure incurred on
hospitalization in accordance with the prescribed rules.
Demands 4.11.2 Some associations of Government employees in their
submissions to the Commission have lamented the poor quality of
service available under CGHS and sought an alternative to it. The
Central Government pensioners living in non-CGHS areas and
their associations have demanded reimbursement of medical
expenditure under the CS (MA) Rules on par with what is available
to the serving employees. Substantial enhancement in the amount
Chapter 4.11
323
of medical allowance of Rs.100 presently payable to pensioners
living in non-CGHS areas has also been demanded.
Analysis and
recommendations
4.11.3 The Commission is aware that there is increasing pressure
on CGHS which sometimes results in less than satisfactory services
being provided to its beneficiaries. On the obverse, CGHS is
appreciated by a number of employees and most of the pensioners.
In fact, most of the pensioners associations, in their submissions to
the Commission, have requested continuance of CGHS facilities.
The need of the hour may, therefore, be to retain the existing
scheme of CGHS while simultaneously providing optional inpatient
facilities (IPD) through medical insurance. This will
provide an alternative to such of those employees/ pensioners who
are not satisfied or are not living in the areas covered by CGHS.
The Commission, therefore, recommends that the Government
should revise entitlements for treatment in IPD for CGHS card
holders so that private ward facilities are available at least to the
employees in PB-2 pay band. The Commission is not in favour of
extending CS(MA) Rules to the pensioners as not only it will
prove to be very costly (estimates given by the Government peg
it at Rs.1,820 crore p.a.) but will also suffer from problems
relating to submission of bills, its verification and subsequent
payment, etc. This will pose additional problems for the
pensioners claiming reimbursement and will generate additional
administrative work with attendant problems for the
Government. The Commission is of the view that an insurance
scheme should be devised for meeting the OPD needs as well. In
the interregnum, the Government should consider enhancing the
amount of medical allowance for pensioners living in non-CGHS
areas appropriately.
Health insurance for Government employees & pensioners
4.11.4 Availability of health service providers in the private sector
has increased discernibly in the recent past. Therefore, making
available the in-patient facilities through a set up outside CGHS is
now viable. CGHS, by way of referrals, is already using this both
private and Government network. CS (MA) Rules, in any case,
operate through a system of Authorized Medical Attendants
(AMA) where adequate number of Government Doctors is not
available. CS (MA) Rules also provide for a set of empanelled
hospitals where the concerned employees can take treatment. The
Commission was informed that the Government is in the final
stages of introducing a health insurance scheme for its employees
so as to provide them with wider facilities and quality health care
without directly burdening the Government with the
administrative responsibility of verifying bills and/or expanding
public sector medical infrastructure. The scheme being formulated
by the Government, however, had not been formalized till the time
of finalization of this Report. Accordingly, the Commission is
324
recommending a scheme of health insurance for Central
Government employees and pensioners in this Report.
Recommendations 4.11.5 The Commission, accordingly, recommends introduction
of a Health Insurance Scheme for Central Government
employees/pensioners as under :-
i) For the existing employees and pensioners, the Insurance
Scheme would be available on voluntary basis subject to
paying the prescribed contribution. Contributions should
be based on the actual premium paid. Group A, B and C
employees should contribute 30%, 25% and 20% of the
annual premium respectively with the Government
paying the remainder. This arrangement should be
reviewed periodically.
ii) The Health Insurance Scheme would be compulsory for
new Government employees who would be joining
service after the introduction of the Scheme. Similarly,
new retirees after the introduction of the Insurance
Scheme would be covered under the Scheme. The new
recruits and pensioners will consequently not be provided
CGHS / CS (MA) facilities. The new recruits and the new
retirees may be paid an appropriate amount for meeting
their OPD expenditure till the time an insurance scheme
for providing OPD facilities is devised.
iii) Serving employees and existing pensioners shall have the
option to opt out of CGHS and subscribe only to the
Insurance Scheme, thus making their own arrangements
for OPD needs. In such cases, they will not pay
contributions to the CGHS. On par with new recruits,
they will need to contribute only the amounts prescribed
for similarly placed class of employees/pensioners under
CGHS and may also be paid an appropriate amount for
their OPD expenditure till the time an insurance scheme
for providing OPD facilities is devised. The serving
employees in non-CGHS areas may also opt for Health
Insurance Scheme and subscribe to the same.
iv) All personnel of the Central Government including All
India Service officers, serving and retired, and others who
are covered under the existing CGHS and under CS (MA)
Rules may be offered the health insurance scheme on a
voluntary basis.
Railways &
Defence
(combatants)
4.11.6 The aforesaid scheme has been recommended for
Government employees paid from civil estimates other than those
working in Railways. However, Railways and Defence
(combatants), who are having their own medical infrastructure,
should also devise a similar scheme for their employees.
Sunday, August 24, 2008
ALLOWENCES OF SIXTH PAY - COMMISSION
Under Sixth Pay Commission government has approved many allowances. It has also withdrawn several allowances and has reduced or increased them.
In the meantime the government has forwarded the report to Department of Personal and Training for the implementation of the report. This shows government’s sincerity in implementing the report.
In the meantime more and more state government are coming forward to implement the report in heir respective states. Though there are questions as to whether how the state governments already their economy in tatters can absorb the burden of thousands of crore of rupees on the implementation of the report.
Nonetheless it gives hope to millions of state government employees that sooner than later they too are going to benefit from sixth Pay Commission recommendations.
1. Dearness Allowance:
* the AICPI (IW) will continue to be the index used for calculating DA for Government employees.
* Merger of dearness allowance with basic pay is not recommended.
* DA will continue to be sanctioned twice a year as on 1st January and 1st July payable with the salary of March and September, respectively.
2. City Compensatory Allowance (CCA):
* City Compensatory Allowance to be abolished.
3. Other Compensatory allowances:
* Rates of Special Compensatory (Hill Area/Remote Locality), Tribal Area Allowance, Project Allowance and Bad Climate Allowance revisied as follows :
* Project Allowance: Rs.1500 p.m. For posts in the grade pay of Rs.5400 and above; Rs.1000 p.m.For posts in the grade pay of less than Rs.5400
* The rates of all the above allowances shall automatically increase by 25% whenever the Dearness Allowance payable on the revised pay bands goes up by 50%.
* Abolition of Special Compensatory Allowance for Gandhinagar and Special Compensatory (Border Area) Allowance.
* As regards Special (Duty) Allowance for postings to North East Regions, the allowance at the existing rates should be paid to all Central Government employees on their posting on transfer to any North East Region irrespective of whether the transfer is from outside the North East Region or from another area of that region.
* The condition that the employees have all India transfer liability should also be dispensed with. This will ensure that all employees, irrespective of their group, get the benefit of this allowance on their posting to a new city in North East on transfer.
* The Special (Duty) Allowance as well as other concessions allowed to the Government employees in North East region to be extended to the Government employees posted in Ladakh.
* Island Special (Duty) allowance: No change is recommended in respect of this allowance. However, this allowance should, henceforth, also be paid to all Central Government employees on their posting on transfer to any place in these Islands without insisting on an all India transfer liability.
* Hard Area Allowance to the employees posted in the Nicobar group of Islands to be paid separately along with Island Special (Duty) Allowance. Further, this allowance should also be extended to the Lakshadweep group of islands.
Project Allowance
In the meantime the government has forwarded the report to Department of Personal and Training for the implementation of the report. This shows government’s sincerity in implementing the report.
In the meantime more and more state government are coming forward to implement the report in heir respective states. Though there are questions as to whether how the state governments already their economy in tatters can absorb the burden of thousands of crore of rupees on the implementation of the report.
Nonetheless it gives hope to millions of state government employees that sooner than later they too are going to benefit from sixth Pay Commission recommendations.
1. Dearness Allowance:
* the AICPI (IW) will continue to be the index used for calculating DA for Government employees.
* Merger of dearness allowance with basic pay is not recommended.
* DA will continue to be sanctioned twice a year as on 1st January and 1st July payable with the salary of March and September, respectively.
2. City Compensatory Allowance (CCA):
* City Compensatory Allowance to be abolished.
3. Other Compensatory allowances:
* Rates of Special Compensatory (Hill Area/Remote Locality), Tribal Area Allowance, Project Allowance and Bad Climate Allowance revisied as follows :
* Project Allowance: Rs.1500 p.m. For posts in the grade pay of Rs.5400 and above; Rs.1000 p.m.For posts in the grade pay of less than Rs.5400
* The rates of all the above allowances shall automatically increase by 25% whenever the Dearness Allowance payable on the revised pay bands goes up by 50%.
* Abolition of Special Compensatory Allowance for Gandhinagar and Special Compensatory (Border Area) Allowance.
* As regards Special (Duty) Allowance for postings to North East Regions, the allowance at the existing rates should be paid to all Central Government employees on their posting on transfer to any North East Region irrespective of whether the transfer is from outside the North East Region or from another area of that region.
* The condition that the employees have all India transfer liability should also be dispensed with. This will ensure that all employees, irrespective of their group, get the benefit of this allowance on their posting to a new city in North East on transfer.
* The Special (Duty) Allowance as well as other concessions allowed to the Government employees in North East region to be extended to the Government employees posted in Ladakh.
* Island Special (Duty) allowance: No change is recommended in respect of this allowance. However, this allowance should, henceforth, also be paid to all Central Government employees on their posting on transfer to any place in these Islands without insisting on an all India transfer liability.
* Hard Area Allowance to the employees posted in the Nicobar group of Islands to be paid separately along with Island Special (Duty) Allowance. Further, this allowance should also be extended to the Lakshadweep group of islands.
Project Allowance
Friday, August 22, 2008
LATEST ON 6TH PAY-COMMISSION
The sixth pay commission recommendations which was approved by the Govt of India on Aug 14th 2008 and announced on Aug 15th has left many people searching for answers for their new pay scales, arrears, pay bands etc. I tried to update the last article on sixth pay commission as much as possible.
Everyone can check their latest pay structure and arrears due to them by just providing the necessary information. The result shows the old pay scale along with the new pay scale and arrears after the implementation of sixth pay commission. You can also check the previous post on sixth pay commission which brings out the key highlights of the 6th pay commission,pay structures and pay bands.
SALARY CALCULATOR :---
skip to main | skip to sidebar
Hip Celeb
Saturday, August 23, 2008
Sixth pay commission latest news: DIY : Calculate your new Salary
DIY : Calculate your new Salary
Fixation of Pay as on 01.01.2006:
Old basic = 7500 ( in pre revised scale S-14 = 7500 - 250 - 12000)
Revised Pay Band = PB-2 = 9300-34800
Grade Pay = 4800
New Basic pay as on :
01.01.2006 = Old basic pay X 1.86 + Grade Pay = 7500 X 1.86 + 4800 = 18750
01.07.2006 = 18750 X 1.03 = 19313
01.07.2007= 19313 X 1.03 = 19892
01.07.2008 = 19892 X 1.03 = 20489
Transport allowance for A1 city from 01.09.2008= 1600
HRA for A1 city = 30 % of new basic from 01.09.2008 = 0.3 x 20489 = 6147
DA on new basic and transport allowance( but TA will be given from 1.09.2008) = revised DA is 16 % effective from 01.07.2008 = 0.16 X ( 20489 + 1600) = 3524
Total Emoluments from 01.09.2008 = New basic pay + TA + HRA + DA ( on new basic pay + TA) = 20489+1600+6147+3524
= Rs 31760
Total Revised Gross Pay from 01.09.2008 = Rs 31760.
Total Pre revised gross pay as on 01.08.2008
= old basic X 1.5 X 1.54( 7% additional DA will be effective from 01.07.08 in pre revised scale 47+ 7 = 54%) + TA + HRA + CCA = (7500X1.5 X 1.54)+ 400 + (0.3 X 7500 X1.5) + 300
= 17325 + 400 + 3375 + 300 = 21400
Gross pre revised Pay as on 01. 08. 2008 = 21400
Absolute hike in gross salary = Gross revised salary - gross pre revised salary = 31760 - 21400 = 10360
Percentage (%) hike in Gross salary = (10360/21400 ) X 100 = 42 %
Notes:
1. It is assumed that he has not got any promotion between 01.01.2006 to 01.09.2008. If one got promotion between 01.01.2006 and 01.09.2008, one additional increment of 3% of new basic pay will be given plus his revised grade pay after promotion will be added for calculating new basic pay. In above sample calculation, if someone got promotion in 01.08.2007 from pre revised scale S-14 (= 7500 - 250 - 12000) to S-15 scale (8000 - 275 - 13500), this scale is now upgraded in PB-3 ( 15600 - 39100) with grade pay 5400.
Therefore he will get one additional ancrement on 01.08.2007
New Basic pay as on
01.08.2007 = 19892 X 1.03 + 5400 ( new grade pay) - 4800 (old grade pay) = 21089
01.07.2008 = 21089 x 1.03 = 21721
Remaining calculation for TA, HRA and Da will remain as it is.
2. He is staying in Class A-1 city.
3. He is not using official transport, therefore eligible for transport allowance.
4. Revised Da will be effective 2% from 01.07.2006, 6% from 01.01.2007, 9% from 01.07.2007, 12 % from 01.01.2008 and 16 % from 01.07.2008.
Everyone can check their latest pay structure and arrears due to them by just providing the necessary information. The result shows the old pay scale along with the new pay scale and arrears after the implementation of sixth pay commission. You can also check the previous post on sixth pay commission which brings out the key highlights of the 6th pay commission,pay structures and pay bands.
SALARY CALCULATOR :---
skip to main | skip to sidebar
Hip Celeb
Saturday, August 23, 2008
Sixth pay commission latest news: DIY : Calculate your new Salary
DIY : Calculate your new Salary
Fixation of Pay as on 01.01.2006:
Old basic = 7500 ( in pre revised scale S-14 = 7500 - 250 - 12000)
Revised Pay Band = PB-2 = 9300-34800
Grade Pay = 4800
New Basic pay as on :
01.01.2006 = Old basic pay X 1.86 + Grade Pay = 7500 X 1.86 + 4800 = 18750
01.07.2006 = 18750 X 1.03 = 19313
01.07.2007= 19313 X 1.03 = 19892
01.07.2008 = 19892 X 1.03 = 20489
Transport allowance for A1 city from 01.09.2008= 1600
HRA for A1 city = 30 % of new basic from 01.09.2008 = 0.3 x 20489 = 6147
DA on new basic and transport allowance( but TA will be given from 1.09.2008) = revised DA is 16 % effective from 01.07.2008 = 0.16 X ( 20489 + 1600) = 3524
Total Emoluments from 01.09.2008 = New basic pay + TA + HRA + DA ( on new basic pay + TA) = 20489+1600+6147+3524
= Rs 31760
Total Revised Gross Pay from 01.09.2008 = Rs 31760.
Total Pre revised gross pay as on 01.08.2008
= old basic X 1.5 X 1.54( 7% additional DA will be effective from 01.07.08 in pre revised scale 47+ 7 = 54%) + TA + HRA + CCA = (7500X1.5 X 1.54)+ 400 + (0.3 X 7500 X1.5) + 300
= 17325 + 400 + 3375 + 300 = 21400
Gross pre revised Pay as on 01. 08. 2008 = 21400
Absolute hike in gross salary = Gross revised salary - gross pre revised salary = 31760 - 21400 = 10360
Percentage (%) hike in Gross salary = (10360/21400 ) X 100 = 42 %
Notes:
1. It is assumed that he has not got any promotion between 01.01.2006 to 01.09.2008. If one got promotion between 01.01.2006 and 01.09.2008, one additional increment of 3% of new basic pay will be given plus his revised grade pay after promotion will be added for calculating new basic pay. In above sample calculation, if someone got promotion in 01.08.2007 from pre revised scale S-14 (= 7500 - 250 - 12000) to S-15 scale (8000 - 275 - 13500), this scale is now upgraded in PB-3 ( 15600 - 39100) with grade pay 5400.
Therefore he will get one additional ancrement on 01.08.2007
New Basic pay as on
01.08.2007 = 19892 X 1.03 + 5400 ( new grade pay) - 4800 (old grade pay) = 21089
01.07.2008 = 21089 x 1.03 = 21721
Remaining calculation for TA, HRA and Da will remain as it is.
2. He is staying in Class A-1 city.
3. He is not using official transport, therefore eligible for transport allowance.
4. Revised Da will be effective 2% from 01.07.2006, 6% from 01.01.2007, 9% from 01.07.2007, 12 % from 01.01.2008 and 16 % from 01.07.2008.
NEWS --SIXTH PAY COMMISSION
New Delhi, Aug 21, 2008: Sixth Pay Commission recommendations have given some hope to government employees. Pay scales have changed and so the income. To central government employees it gives an immediate succor and for state government employees it gives hope that with its implementation in their respective state they would be able to see better days ahead.
Read more:
Salient features of 6th Pay Commission
But all people are not very happy. They think that sixth pay commission has not been very fair to them. Take the case of one Mr Farooqi (name changed) a central school teacher. Initially he had thought that his salary would almost double, but now he is realizing that the difference may well not be just about 5-6 thousand rupees, making no significant change in his lot.
He says that he had taken a house loan for 10 lakhs hoping that with six pay commission in place he would be able to control his expenses and anyhow sixth pay commission hike would give him a breathing space. But adds Mr Farooqi that the hike in salary is not as much as they had anticipated. His wife Rana adds that they never fought on monetary issue, but as financial crisis looms over them fights have ensued. She says that they can cut their budget to any extent, but how can they deny their kids one doing his engineering and another doing high school, their basic expenses.
She says that their hope has turned into despair. Mr and Mrs Farooqui are not alone. There are any number of central government employees who are suffering from a similar problem.
Read more:
Salient features of 6th Pay Commission
But all people are not very happy. They think that sixth pay commission has not been very fair to them. Take the case of one Mr Farooqi (name changed) a central school teacher. Initially he had thought that his salary would almost double, but now he is realizing that the difference may well not be just about 5-6 thousand rupees, making no significant change in his lot.
He says that he had taken a house loan for 10 lakhs hoping that with six pay commission in place he would be able to control his expenses and anyhow sixth pay commission hike would give him a breathing space. But adds Mr Farooqi that the hike in salary is not as much as they had anticipated. His wife Rana adds that they never fought on monetary issue, but as financial crisis looms over them fights have ensued. She says that they can cut their budget to any extent, but how can they deny their kids one doing his engineering and another doing high school, their basic expenses.
She says that their hope has turned into despair. Mr and Mrs Farooqui are not alone. There are any number of central government employees who are suffering from a similar problem.
Subscribe to:
Posts (Atom)
Posts
