Govt notifies revised Sixth pay panel recommendation

For implementing the modified Sixth Pay Panel report on the schedule time, the Government of India on Friday night issued the notification regarding Sixth Pay Panel recommendation. This notification refers that government is on the move of ‘salary fixation’ as per final report of the panel and is going to implement it on its schedule time on September 01, 2008.

The government has accepted most of the recommendations of Sixth Pay Panel while four recommendations have been rejected and some are still under examination that will be either implemented or scrapped depending upon scrutiny committee report.

In the issued notification government has said, “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.”

It means the basic pay of 5th pay scale on January 1, 2006, would be multiplied by 1.86 and then rounded off by next multiplication of 10. This will be the pay in the revised running pay band.

The union cabinet had approved it on August 14, 2008, with slight modifications and this final report will be implemented from September 01, 2008, which will be effective from January 01, 2006, as per recommendation.

This implementation of Sixth Pay Revision (SPR) will benefit over 5-millions of Central employees.

The government has hiked the average salary by 21% while the arrears- the difference between the disbursed salaries and overdue in the payments- would be given in cash bifurcating 40% in this fiscal while remaining 60% in the next fiscal.

This SPR would put additional burden on Central Government budget of Rs. 15,700-crore and on Railway of Rs.6,400-crore.

Here is the highlight of notification of Sixth Pay Scale:

Accepted Recommendation

Four Pay bands have accepted comprising 20 pay scales. Government has revised four pay bands by reducing 3 and introducing new higher pay band- pay band – 4.

The Pay Band–1: Rs. 5,200-20,2000 Pay Band–2: Rs.9,300- 34,800 Pay Band-3: Rs.37,400- 67,000 Pay Band–4: Rs. 75,500- 80,000 (with annual increment of 3%)

The government has approved the annual increment of 3% in the salary of defence and civil employees.

Three promotions have been assured in 10, 20 and 30 years of service for the civil employees, while for the defence personnel it will be 8, 16 and 24 years.

Minimum Basic Pay of the employee will be Rs. 7,000 which would exceed Rs. 10,000 after including allowances.

The chairpersons and members of five regulators - Telecom Regulatory Authority of India (TRAI), Insurance Regulatory and Development Authority (IRDA), Central Electricity Regulatory Commission (CERC), Securities and Exchange Board of India (SEBI) and Competition Commission of India (CCI) — will get salary in the range of Rs 2.5 lakh to Rs.3 lakh per month.

The Union Cabinet Secretary will get Rs. 90,000/- while others top secretaries will get Rs. 80,000 per month.

Travel allowance (TA) will be eligible for those employees who live in the campus, and government has hiked the TA by Rs. 200 for A1 and A class cities and Rs. 100 for others. Now, it would be Rs. 6,00 for A-1 and A class cities and Rs. 400 for other cities.

Pension is now applicable for only 20-year of job tenure.

Recommendation Rejected

City Compensatory Allowance: A special compensation to hill area, remote locality, tribal area and band climate areas employees, while those who will go anywhere for specific project will also get the special compensation for that tenure.

Severance Package: Those who would leave service between the tenure of 15 –20 years.

The recommendation of reducing government holidays to only 3 and flexi hours duty for women and disable persons.

Under Consideration

Bonus and Over Time Allowance, corporatising Indian Railways, lateral shift of defence personnel to Central paramilitary forces, introduction of a health insurance scheme, merger of accounts services, ending of the Indian Telecom Service and the Telecom Commission, outsourcing commutation of pension to a public sector undertaking, bank or institution.