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Saturday, September 29, 2007

6500 as new minimum Basic Pay

An article that came in Malayalam daily - Mathrubhumi

It is known that the sixth pay commission has decided to unify the increment dates and retirement dates for all the central govt. employees. Accordingly the retirement date will be December 31st and the increment falls on January 1st. The minimum basic pay will be 6500.

The pay commission chaired by Justice B N Shrikrishna has decided to reduce the number of pay scales from existing 39 to 16. The retirement ages will stay at existing 60 years.

Based on the speculation of the mid-term poll, the finance ministry has asked the commission to submit the pay structure alone. The detailed report will only be submitted later

The recommendations will be to implement the scales with effect from January 2006. However the arrears due to the additional allowance will be calculated with effect from January 2007. The commission has recommended from 6pc DA from January 2007 and 14pc from January 2008.

As per the recommendations, the minimum basic scale for the central government employees will be 6500-150-9500(Group D). The existing scales which starts with 2650 and 2750 will be merged to a new scale of 7500-250-12500 for the group D staff. The scales starting with 4000 and 4500 will be merged and made into 10300-300-17500.

The employees in the A1 cities comprising of Delhi, Mumbai, ChennaI, Kolkotta and Bangalore will get an HRA of 30pc of the basic pay subject to a maximum of 12000. The HRA for AB1, B2 and other places will be 15pc(6000 max), 7.5pc(3000 max) and 5pc(2000 max) respectively. The CCA will be 4pc(1200max),3pc(900max),2pc(600max) and 1pc(600max) respectively.  The conveyance allowance in the A1 and A cities will be 6pc of basic(2400max for gazetted and 1200 for non-gazetted). At other places this will be 3pc(1200/600 max).

The employees will have to contribute 10pc of the basic pay towards the PF.The employees in different groups will have to pay 400/200/100/50 towards the Insurance schemes.

While retiring the employees can encash 360 days (currently  300 days) of accumulated leaves. The pension commutation can be done for 60pc against the existing 40pc.