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
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Saturday, August 30, 2008
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-à-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-à-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 :---
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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.
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