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Highlights of approved Sixth Pay Commission Report

These are Highlights of Sixth Pay Commission Report finally approved by Cabinet on 14.08.2008. It is expected that the Prime Minister Mr.Manmohan Singh would give the details of the Pay Commission report approved by Cabinet during his independence day speech tomorrow.

  • Minimum basic Salary – Rs. 7000
  • Education Allowances for employees for upto two children – Rs. 1,000 per month (Earlier, it was Rs. 100)
  • Maximum Basic Salary – Rs. 90,000 (Cabinet Secretary)

  • National Holidays – 3
  • Gazette Holidays to be canceled
  • Pay hike will be implemented from January 01, 2006
  • Maternity Leave : 6 Months
  • HRA in A-1 Cities – 30% (Unchanged)
  • HRA in A, B, B-1 Cities – 20%
  • Increase in Transport Allowance at the lowest level to Rs.600 (from Rs.400 in A-1/A class cities recommended by the Sixth CPC) and Rs.400 (from Rs.300 in other cities recommended by the Sixth CPC).
  • Incentive Schemes to be announced
  • New Medical Insurance Scheme to be launched for government employees
  • Market-driven pay for scientists and all other jobs that require professional skill set.
  • Total number of salary grades to be reduced from 35 to 20.
  • Government has continued the present position of granting Group A scale to Group B officers after 4 years of service and these officers would be placed in PB-3 instead of PB-2 recommended by the Sixth CPC. This would benefit Group B officers of the Railways, Accounts Services, CSS, CSSS and DANICS & DANIPS.
  • The government increased the minimum entry level salary of a government employee to Rs 7,000 against Rs 6,660 recommended by the Commission headed by Justice B N Srikrishna who submitted the report in March this year.
  • Consequently, it would push up the total emoluments of an employee at the lowest level beyond Rs 10,000 per month including allowances.
  • It also increased the rate of annual increment from 2.5 per cent to 3 per cent.
  • In the defence sector, it approved 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.
  • Group D personnel to stay (peons in ministries and porters in Railways).
  • For the Railway employees who are in receipt of Running Allowance, this allowance will be taken into account while fixing their pay in revised pay bands;
  • For Doctors, the Cabinet has approved promotions under the Dynamic ACP Scheme upto Senior Administrative Grade (Joint Secretary level) for Doctors with 20 years of service. Counting of Dearness Allowance (DA) on Non-Practicing Allowance (NPA) as on 01.01.2006 for fixing their pay in revised pay bands has also been approved;
  • For the scientists, continuation of the existing system of grant of Special Pay of Rs.2000 p.m. to Scientists G on promotion and doubling of the amount to Rs.4000 p.m. in Departments of Space and Atomic Energy and Defence Research & Development Organisation (DRDO) has been recommended.
  • Further, the IPS Pay Rules and the Indian Forest Service Pay Rules will be appropriately modified to provide in each State cadre one post of DGP and one post of PCCF at the apex level of Rs.80000 for heading their respective Forces.
  • Middle level Police and Civilian officers i.e. DIGs, Conservator of Forests, Scientists E & F, Superintending Engineers, Directors, Additional Commissioners of Income Tax and Central Excise and posts in equivalent grades have also been placed in PB-4.
  • The rates of Special Forces Allowance for Army and Air Force to be equated with navy’s Marine Commando Allowance;
  • For the officers of Central Para Military Forces, all the posts of Additional DIG upgraded to DIG level by the Pay Commission to continue to be manned by the cadre officers of CPMFs;
  • As replacement of the pay scale of Rs.24050-26000, a separate pay scale has been carved for DGPs, PCCFs, GM (Railways), members of the Boards of Income Tax, Customs & Central Excise, Postal and Ordnance Factories, among others, who were in this pre-revised scale. This would take them to the level of Rs.80000 in two years as against three years in the pre-revised scale.
  • The hiked salary would be given to the employees beginning September this year and the arrears from January 2006 would be given in cash in two installments – 40 per cent this fiscal and 60 per cent in 2009-10.
  • 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.
  • The lowest limit of disability pension for defence personnel would be doubled to Rs 3100 a month.
  • No Cabinet Secretary rank for Intelligence Bureau chief, the three Service chiefs or the Chairman, Railway Board.
  • Military service pay for persons below the officer rank (POBR) would be Rs 2,000 per month.
  • Significant hike in salaries of Brigadiers: they move to Pay Band 4 (Rs 39,200-67,000) from the suggested Pay Band 3 (Rs 15,600-39,100).
  • DIG-scale abolished in IPS and Indian Forest Service.
  • The salaries of Brigadiers will be in Pay Band 4 (Rs 39,200-67,000) as against the suggested pay band 3 (Rs 15,600 – 39,100) previously.
    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 financial implication of Pay Commission on the General Budget would be Rs 15,717 crore and Rs 6414 crore on Railway Budget in 2008-09. The government’s present salary bill is over Rs 70,000 crore and the pension bill is over Rs 30,000 crore. Finance Minister P Chidambaram said the budget deficit target would be adhered to, despite the implementation of the Pay Commission recommendations.

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