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Tuesday, Mar 25, 2008
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Bonanza for Central government staff

Ashok Dasgupta

Commission recommends 40% hike in salary

NEW DELHI: In a major post-Holi bonanza, the Sixth Pay Commission on Monday recommended an average 40 per cent increase in the salary of over 40 lakh Central government employees and a doubling of most of their allowances that would impose a burden of Rs. 12,561 crore on the exchequer in 2008-09.

Submitting its report to the government, the Commission, headed by Justice B.N. Srikrishna, however, noted that the net financial implications of the recommendations would be about Rs. 7,975 crore in the new fiscal, owing to a savings of Rs. 4,586 crore that was likely to accrue on implementation of various other measures.

The Commission, however, held out a warning that partial implementation of the recommendations “will bring in several anomalies and inconsistencies.” It suggested implementation of the revised salary package with effect from January 1, 2006 along with payment of arrears in two instalments during the year.

After presenting the report to Finance Minister P. Chidambaram, Mr. Justice Srikrishna said: “I have recommended something which is good for the nation ... the average hike will be 40 per cent.”

The proposals, to be implemented after Cabinet approval, include benefits for defence personnel. Their salary will be on a par with civilian staff while making them eligible for a special monthly allowance of up to Rs. 6,000. The total number of salary grades have been reduced to 20 — spread over four distinct bands — against 35 standard pay scales as of now.

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