Sixth Pay Commission recommends bonanza offer for Govt Employees

Mon, 24 Mar 2008: 

It’s a dual celebration for the government babus by enjoying Diwali at the fest of colourful Holi as the sixth pay commission on Monday has submitted its salary structure report to Union Finance Minister P Chidambaram recommending a hefty increment in the basic salaries benefiting of over four million Central vernment employees.

The new salary package would inhabit government employees equivalent to its private counterparts in the salary and living status.

Justice B N Srikrishna, the head of sixth pay commission has submitted its report today asking 40% hike in the basic salary of the upper-class employees along with significant increment in the lower-class employees. It would cost the cumulative one time burden of Rs.181-billion in terms of arrear on the Central Government for the 2008-09 if it were accepted by the government in its presented form.

The Commission has recommended to impose the new salary structure from January 01, 2006, the date of setting up the commission.

The sixth pay commission has fixed the maximum beginning basic salary of Cabinet Secretary at Rs 90,000 (with 50 per cent merged dearness pay and 47 per cent DA) a month and Secretary at Rs 80,000 (with 50 per cent merged dearness pay and 47 per cent DA) per month, while Rs 6,660 would be the minimum entry-level salary of the lowest level of Central Government employee.

Earlier, the approved beginning basic salary of the Cabinet Secretary was Rs.30,000 and the Secretary’s salary was Rs.26,000 excluding the merger of dearness pay and DA.

Cabinet Secretary is the biggest Indian Government officer while Secretary is the second top-most job in Indian Government. On the other hand, the group ‘D’ job is the lowest level government’s job, while group ‘C’ is considered as the mid-level non-gazetted job. The designation of the gazetted officer begins with the Group ‘B’ level jobs and Group ‘A’ is assessed as the top-level post.

The pay commission earlier fixed the minimum salary structure and then the maximum, on the basis of the difference; it becomes easy for the commission to set up the remaining salary structure. The new revised pay structure would cost exchequer Rs. 12,561 crore in 2008-09, if government accepts it’s all terms and conditions.

Pay commission has also recommended the handsome increment in the pension and family pension plan that would provide some relief to senior citizens of India. As per, sixth pay commission report; now a retired government employee would also be benefited from the 40% surge in their current pension.

The commission has also recommended raising the salary at the rate of 2.5% per annum and the commencement of this would begin from every July 01. Besides this, Commission has also introduced a scheme of Performance Related Incentive Scheme (PRIS) in the place of bonus, honorarium, overtime allowances and other perks to boost the eligible candidate and to make competitive like private sector jobs. This step would also cut the extra burden of government that was essential to award everyone.

Commission has sustained the House Rent Allowance, as earlier for the A1 cities employees while other cities’ employees will get 20% HRA allowance as against at present’s 10% HRA.

Sixth Pay Commission Recommendations

• The minimum Government salary will begins with Rs 6,660/- per month • The maximum Government employee salary to be Rs 80,000 per month • No change in HRA for A1 cities employee while other cities’ employee will get 20% HRA as against present 10% • One-time burden on treasury of Rs.181-billion on arrears • Revised pay to cost exchequer Rs 12,561 crore in 2008-09. • Pensioners will also get 40% more and will get 50% of last pay drawn • The minimum salary of any Group ‘D’ employee would begin now Rs. 8,000 including allowances and perks while the highest starting pay in non-gazetted grade (Group 'C') might be Rs 20,000 • Same like this, the expected beginning pay for gazetted Group 'A' and Group 'B' officers might be Rs 26,000 and Rs 22,000 respectively • The scheme of Performance Related Incentive Scheme (PRIS) can be introduced to make neck-to-neck competition with private sectors.