Benefits derived from 6th Pay Commission

Benefits derived by Central Government Employees from 6th Pay Commission

Addendum to earlier article ” What we expect from 7th Pay Commission” written by Mr.M.Dorai, Deputy Director, ESIC Model Hospital, Bangalore (Ministry of Labour, Government of India)

Although I stand by what I said about the anomalies under 6th Pay Commission in my article “What we expect from 7th Pay Commission?’’ especially with regard to the 3 methods of pay fixation policy, pay band concepts, and vast variations in fitment benefits, but I retreat from the conclusion drawn by me in the above article that the earlier Pay Commission recommendations upto 5th Pay Commission were far better than 6th Pay Commission recommendations because a thorough analysis of the various recommendations of the 6th Pay Commission undoubtedly shows that the 6th Pay Commission actually championed the cause of the central government employees in many matters in providing various benefits and welfare measures. I would like to cite few of those recommendations by which the central government employees have been deriving immense benefits:

1. In earlier Pay Commission recommendations up to 5th Pay Commission, the employees with long years of service in a particular cadre were not given pay fixation in the revised pay at the stage relevant to them for the number of increments earned by them. They got very little benefit in pay fixation because the revised initial pay scale (after merger of Pay, D.A. Interim Relief and fitment benefit) was either almost equal or little higher than what they were drawing. This was because of wrong bunching formula adopted by the earlier pay commissions. The newly joined as well as the employees with very less number of years of service were the real beneficiaries to a large extent. Whereas the 6th Pay Commission had taken care to fix the pay of the employees as on 1/1/2006 at the relevant stage in 6th Pay Commission Fitment Table taking into account the number of increments drawn by an employee in the pre-revised 5th Pay Commission pay scale.

2. Not only that, the employees with long years of service in a particular cadre got very less arrears but the employees with less years of service got more arrears in the earlier Pay Commission recommendations upto 5th Pay Commission because of the unfair bunching formula for employees with long years of service. This was not the case under 6th Pay Commission.

3. The 6th Pay Commission had increased the percentage of HRA from (5%, 7.5%, 15% & 30% under 5th Pay Commission) to (10%, 20% and 30%). Those who were getting 5% HRA got 10%, those who were getting 7.5% and 15% HRA got 20% HRA.

4. The Transport Allowance was increased by 400%(i.e. 4 times than what was provided under 5th Pay Commission. For example those who were getting Rs.800 got Rs.3200/-

5. D.A on Transport Allowance: The 6 monthly increase in D.A as per Consumer Price Index have been granted on Transport Allowance also. This is a very new feature.

6. Children Education Allowance: Steep hike in tuition fee from Rs.40 upto X Std. and Rs.50 upto XII Std to Rs.1000/- per month plus 25% increase every time the D.A. crosses 50%(presently Rs.18000 since D.A. crossed 100%).

7. Hostel Subsidy: Increased from Rs.300 per month to Rs.3000 per month(Rs.36,000/- per annum) under 6th Pay Commission plus 25% increase every time the D.A. crosses 50%.

8. Encashment of 10 days EL during LTC upto 60 days in total career and non deduction of EL encashment period during LTC from the 300 days EL encashment on retirement. Liberalisation in LTC for fresh recruits.

9. Air travel for all cadres of employees( including their members of family) drawing Rs.5400 Grade pay and above for LTCs, Transfers, and Official tours.

10. Child Care Leave for women employees with full pay for 2 years to take care of children upto 18 years of age.

11. Increase of Maternity Leave from 135 days to 180 days.

12. Full pension for 20 years of service by doing away with the 33 years of service condition.

13. Increase in Gratuity amount from Rs.3.5 lakhs to Rs.10.00 lakhs.

14. Steep hike in Insurance Cover under Central Government Employees Group Insurance Scheme(CGEGIS)

15. Steep increase in Hotel D.A: The Daily Allowance upto 5th Pay Commission were very meagre for food and hotel accommodation. It has been increased by many fold by 6th Pay Commission almost to the extent of Corporate level.

The details of benefits heaped upon the central government employees by the 6th Pay Commission goes on. Therefore the anomaly in pay fixation policy under 6th Pay Commission does not appear to be a deliberate one to put the employees in a disadvantageous position. Perhaps the 6th Pay Commission would not have anticipated the anomalies that may result.

Mr.M.Dorai, Deputy Director, ESIC Model Hospital, Bangalore (Ministry of Labour, Government of India, is the author of this article.

The views expressed in this article are those of the Guest Author and the same may not represent the views of GConnect.