The Hindu : New Delhi News : Centre notifies pay commission proposals

Online edition of India's National Newspaper
Sunday, Aug 31, 2008
ePaper | Mobile/PDA Version

New Delhi

New Delhi

Centre notifies pay commission proposals

Aarti Dhar

There will be an overall increase of 21 per cent in salaries

At least three promotions assured for employees
Recommendation on liberal “severance package” rejected

NEW DELHI: The Union Government has notified the recommendations of the Sixth Central Pay Commission, benefiting over 50 lakh employees.

The Central Civil Services (Revised Pay) Rules, 2008 come into force from January 1, 2006, though the pay hike will be made effective from September 1. There will be an overall increase of 21 per cent in the salaries. Forty per cent of the arrears will be paid in cash this financial year while the remaining will be paid in the next fiscal.

Four pay bands

There will be four pay bands and a new pay scale of Rs. 75,500-Rs. 80,000 (Joint Secretary and above) designated as Higher Administrative Grade) that will be carved out of Pay Band-IV. Apart from an average hike of 21 per cent, the minimum basic pay for an employee has been increased to Rs. 7,000. Consequently, the total emoluments at the lowest level will exceed Rs. 10,000, including allowances. The fitment rate also stands revised to 40 per cent and the rate of annual increment hiked to three per cent.

At least three promotions have been assured for all defence personnel and civilian employees under the Modified Career Progression scheme. Promotions are ensured after 10, 20 and 30 years of service.

The government has accepted the Commission’s recommendation of a new performance-based pecuniary benefit, over and above the regular salary. The detailed guidelines of the Performance Related Incentive Scheme will be issued by the nodal Ministry.

CCA abolished

The City Compensatory Allowance has been abolished and instead rates of special compensation (hill area, remote locality, tribal area, band climate and project allowance) have been enhanced. Hard Area Allowance applicable to the Nicobar group of islands will be extended to Lakshadweep also.

However, the government has rejected the recommendation for a liberal “severance package” for those employees who want to leave service without pension with more than 15, but less than 20 years of service. The recommendation that there should be only three holidays for government employees, flexi-hours for women and flexi-weeks for employees with disabilities, too, has been rejected.

Bonus, OT allowance

The recommendation relating to bonus and overtime allowance, lateral shift of defence personnel to Central paramilitary forces, introduction of a health insurance scheme, merger of accounts services, corporatisation of the Railways and outsourcing commutation of pension to a public sector undertaking, bank or institution would be examined separately.

Printer friendly page
Send this article to Friends by E-Mail

New Delhi