THIRUVANANTHAPURAM: The Cabinet on Thursday approved the major recommendations of the Pay Revision Commission without any modifications.

The decision would be subject to the approval of the Election Commission of India, as the model code of conduct for the Assembly elections has come into effect.

The decision covers recommendations such as one-rank pension for Government employees. However, the Cabinet has not considered suggestions of the Pay Commission regarding raising of the pension age for certain categories of employees and merit-based promotions.

Chief Minister Oommen Chandy told mediapersons after the Cabinet meeting that the employees would get the salaries in accordance with the revised scales from April (salary for March 2006). Arrears would be granted from April 1, 2005 as recommended by the Commission. The Finance Department would decide the modalities for disbursement. Initially, the arrears would be merged with the Provident Fund. The Chief Minister said the Cabinet could not consider the demand for retrospective effect from July 2004 or rectification of anomalies in the scales, because of the code of conduct for the elections. It had wished to rectify the palpable anomalies in the pay scales proposed, especially if the increase in salary was nominal for any category of employees. These would now be a matter to be considered by the next Government. There was no question of considering an increase in the age of retirement.

Mr. Chandy said the additional financial commitment to the Government on account of pay revision would be about Rs.1,601 crores as per the estimates of the Finance Department. This was higher than what was assessed by the Commission. He said that the Government had already contacted the Election Commission regarding implementation of the pay revision. A written note would be sent on Thursday seeking its approval.

The Chief Minister said the Government would fully comply with the code of conduct. There would not be any attempt to influence the elections. However, the Government would continue to function to address the needs of the people. It would not shy away from its responsibilities. Wherever the Election Commission's clearances were required, that would be sought. Matters that need be discussed with the Opposition would be discussed.

He said that there would not be any inaugurations or other functions. The Government order on agreement with the Dubai Internet City authorities for the Smart City Project had been issued on Wednesday itself. The Government would go ahead with its signing with the concurrence of the Election Commission.

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