Cabinet has approved higher wages for government employees, following on the recommendations of Sixth Pay Commission.
"The cabinet has approved the pay commission report," Law Minister Hansraj Bhardwaj told reporters after the cabinet meeting held today.
- The pay panel recommendations will come into effect from January 1, 2006.
- All recommendations for hike in salaries of civil and defence personnel accepted.
- Rate of annual increment increased from 2.5 per cent to 3 per cent.
- Arrears to be paid in two installments in cash — 40 per cent this fiscal (september-2008) and 60 per cent in the next financial year,I&B Minister P R Dasmunsi said.
- Enhancement in the fitment in revised pay bands recommended by the pay commission to be based on multiplication factor of 1.74 to 1.86 to result in increased emoluments for government employees.
- Minimum entry level pay raised to Rs 7,000 from Rs 6,660 per month recommended by the Commission. Total emoluments of an employee at the lowest level beyond Rs 10,000 per month including allowances.
- At least three assured promotions for all defence forces personnel and civilian employees under the modified Assured Career Progression scheme. While civilians would get this after 10, 20 and 30 years of service, defence forces jawans would be promoted under ACP after 8, 16 and 24 years.
- The lowest limit of disability pension for defence personnel would be doubled to Rs 3100 a month.
- The government for the first time approved Military Service Pay for armed forces personnel, under which officers would get Rs 6,000 over and above their pay per month.
Financial implication of Pay Commission on General Budget Rs 15,700 crore; Rs 6400 crore on Railway Budget in 2008-09. The wage hike would increase the financial implication for the Centre by Rs 17,798 crore annually and the arrears with effect from January 2006 would cost Rs 29,373 crore, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting. The government’s present salary bill is over Rs 70,000 crore and the pension bill is over Rs 30,000 crore.
Keep watching this page for more details, which are yet to come.