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Showing posts from October, 2007

Opinion : Money for nothing?

The Sixth Pay Commission will raise government salaries. What about cutting the flab? The Prime Minister was critical of the pay packages of corporate honchos some time ago and a debate on the subject was ignited. Now there is news that the Sixth Pay Commission has something to say about pay structures in the government sector, with the thrust being unidirectional. Quite naturally there is umbrage, given the mindset about the functioning of the public sector. The main objective of a Pay Commission, broadly defined, is to revise the pay structure of government employees with every decade; and the justification, among other factors, is to establish some kind of parity with the private sector. The impact of the past Pay Commissions has been manifold — they have reduced the incentive for the better candidates interested in joining the bureaucracy, made lower level government staff far better paid than their private sector counterparts, with no accountability, and put the central and …

Pensioners dharna on negative attitude of the Sixth Pay Commission

All-India Organisation of Pensioners (Civil and Military) will organise a dharna and demonstration in front of the Central Government Health Services (CGHS) Office at Kesavadasapuram from 10.30 a.m. to 12.30 p.m. on October 30 in protest against the alleged negative attitude of the Sixth Pay Commission and the Central Government. The demands of the organisation included sanction of an amount of Rs 1,000 as interim relief to the pensioners per month and steps to improve the functioning of the CGHS Office, the organisation said in a statement here on Saturday.

Examining the Feasibility of Performance Related Pay (PRP) in Government

The studies made by Sixth Central Pay Commission.Pay and allowances in the Government are linked to service-incremental salary scales and promotions under different service rules. Promotions have been used as a tool to provide incentive especially at senior management levels. Pay increases are based on annual increments and the salaries depend more on length of service and grades rather than the performance of an individual employee. The aim of the study is to examine the feasibility of working out a model whereby a base salary is attached to each post based on the conventional criterion of skills and responsibility; simultaneously, a second component is introduced that is payable as a percentage of the salary on the basis of productivity and the performance of the employees, either individually or as a group. Terms of reference: The study should examine the correct basis of pay increases and their relation, if any, to performance and productivity of the employees; and examine possi…

Sixth pay commission : The new rumors

Here are some talks hear on street on sixth pay commission. These are only rumors and not heard from any reliable sources.The commission is to submit report by January 2008Provision for extending service of professionalsTechnical employees retirement age may increase to 65 from 60.Deputation between Government and Private Sector can be possible.Performance based incentives (not pay) to be introduced.This topic is meant and open for discussion and you are welcome to post any such talks in the comments.

Election on the horizon. What does it mean?

With the stand off between the UPA and the Left continuing, the political parties have begun the preparations for the elections to the parliament. The question is how the situation help employees. In general the elections are not in national interest. It will cost a lot to the exchequer.But the election mean a lot of hope to the government employees who are expecting the sixth pay commission report. In India, an impending election is nearly always a trigger for populist fiscal spending. And considering the huge size of employees - 3.3 million and their dependents, its not easy to ignore the demands made by them."Early elections could even prompt announcement of some recommendations ahead of schedule," JP Morgan economists wrote in a note last week on sixth pay commission. Party sources have already said the government had instructed the Sixth Pay Commission to expedite the process of finalising increased salaries and allowances for the 3.3 million central government employee…

Sixth Pay Commission Report in December?

Due to the prevailing political uncertainty the central government is poised to unveil a string of welfare measures which some Congress sources say may be a way of preparing for elections despite announcements to the contrary.Party sources said the government had instructed the Sixth Pay Commission to expedite the process of finalising increased salaries and allowances for the 3.3 million central government employees by December. The announcement was originally to be made by April next year. Due to elections preparation, central government may give better rocommendations and want earlier report of sixth pay comission. Employee may get increase of 100-150 % increase in their basic pay that may result in arround 35% increase in total salary.
And so that lowest Group - D , employee's salary crosses 10000 Rs. monthly
And highest beuracrate cabinet secratary's salary reaches rupees 100000 ( one lack) monthly. Secrataries may get double salary.
Child education allowance may increase…

Central, state govt employees to strike work on Oct 30

Central and state government employees will go on a nation-wide strike on October 30 in support of their charter of demands. The strike call has been given by the Confederation of Central and State Government Employees Associations and more than one crore employees would be on strike, organising secretary of the Confederation M Durai Pandian said. The government should pay an interim relief of Rs 1,000 per month to each and every central government employee pending submission of the Sixth Pay Commission report, Pandian told reporters here today. The relief should be available retrospectively from January 1, 2006, he added. Staff and employees coming under the categories of 'B', 'C' and 'D' in both the Central and State administrations would observe the strike. The strike is also aimed at persuading the Centre to raise the interest rate for the General Provident Fund and small savings and restoration of status quo ante without delay. The trend of outsourci…

6th pay panel set to outdo 5th

An article that came in Business Standard
Some grades could be merged, likely pay figures after 6th Pay Commission are assumptions.
The Sixth Pay Commission is likely to significantly raise basic salaries for an estimated 4.5 million central government employees.
The recommendations are expected to be submitted in January, a few months ahead of schedule, and the award is likely to come into effect from January 2006.
If salaries are revised to this extent, a central government secretary could see his or her salary go up to around Rs 75,000 – exclusive of other allowances and perks, approximately 36 per cent of current total salary.
(GoI &equivalent
services)5th Pay
2004 revision
(50% hike) and
DA at 41 %
from 6th Pay
Commission*Secretary26000 fixed5499075000Addl secretary22400-2450047376-5181764512-70500Joint secretary18400-2240038916-4737652992-64512Super time scale12000-1830025380-3870434560-52…

Unions play safe on new pay plan

Major unions such as the CPI(M)-affiliated CITU,  AITUC of the CPI, INTUC (Congress) and BMS (Sangh Pariwar) on Monday said they would react to the  Sixth Pay Commission’s recommendations only after getting “authentic” information.There have been lot of report on media about the new pay scaleThe BMS and CITU said they are not happy with the hike recommended for Class IV staff. CITU president and CPI(M) politburo member MK Pandhe  refused to comment before studying the recommendations, but said:  “If what media is saying is true, the Class IV staff has been given a raw deal.” AITUC president Gurudas Dasgupta said: “Let there be a report from the panel. All the stories published in the newspapers are not correct.” INTUC president Sanjiv Reddy denied that the recommendations have been finalised. He said the pay panel will announce the hike around December-January.

Nod from finance ministry key to pay scale reform

NEW DELHI:  The Sixth Pay Commission, chaired by former Supreme Court judge BN Srikrishna, who also carried out the inquiry into the 1993 Mumbai riots, was originally expected to submit its report in April next year. But sources indicate that the Commission is speeding up the work in the light of the uncertainties surrounding the longevity of the UPA government. A crucial step in finalising the new pay structures for the central government employees, is the nod from the finance ministry for the proposals. The ministry has to study the proposals to see if they are financially viable, and come within a reasonable fiscal discipline for the government. And, most importantly, it has to assess if the further drain on the exchequer can be managed when similar revisions are carried out in states and public sector units. This is particularly relevant in the context of the problems faced with the Fifth Pay Commission, whose recommendations were partially implemented in 1998. The commission had…

Sixth pay commission will have no bonanza for babus

An  article that came in Daily News and AnalysisNEW DELHI: For over four million government employees, including military personnel, the Sixth Pay Commission may not usher in a dramatic new era where salaries are more in tune with skyrocketing wages in the private sector. DNA has procured details of the draft salary structure that is now under discussion between the commission and the finance ministry. These indicate that even at the top-most level — the Union cabinet secretary — the fixed salary will be just about Rs80,000 per month, up from Rs30,000 earlier. As head of the Indian bureaucracy, the cabinet secretary notionally runs India’s largest corporation of almost 3.3 million people, excluding over a million men in military uniform. His proposed salary wouldn’t be a patch on CEO salaries in the corporate sector, where annual compensation packages run into crores of rupees for even medium-sized companies. At the bottom of the totem pole, starting salaries for Class IV employees …

Sixth Pay Commission to recommend hire on contract

A report that came in Asian Age on 13th October 2007 on the 6th CPC

New Delhi, Oct.12: The Sixth Pay Commission headed by Justice B.N.Srikrishna (Retd) plans to recommend to the government that it hire bureaucrats in future on a contract basis in order to increase the efficiency of the administration.

The commission, whose recommendations are, however, not binding on the government, is expected to submit them formally by March or April next year.

Justice Srikrishna, when asked if he was advocating a "hire-and-fire" policy for senior government officials, said: "Why not? If you want to end the security of tenure, then such an alternative (contractual approach) needs to be examined. It is a logical corollary that needs to be looked at."

Justice Srikrishna said there was a "dire need" to develop "a sprit of competitiveness in governance in order to end the prevailing 'mai baap' attitude." In a no-holds-barred interview to this newspaper…

Amar Ujala Report on sixth pay commission report

These days Newspaper across the country, publishing News item about Six Pay Commission and its recommendations. Speculative reports about how much increase in the pay of the Central Government Employees will be as well other allowances and other effects are being continuously published. After Deccan Herald and Malayala Manorama in Kerala, its now turn of the Hindi News Papers Amar Ujala and Rajasthan Patrika. Amar Ujala has published a special report yesterday and Rajathan Patrika has published article on the same line today. These News item in Hindi News Papers only confirm various information already in the circulation among employees. Some of the Fine prints of the reports are :
Retirement Age is going to be 62 years
Basic salary will be increased by 100-150%
Net effect will be 30-40% only
Lowest salary will be more than Rs.10000
Government has asked the commission to give its report early
Child Education allowance will be Rs.200-300
HRA increased by 15% i.e. 45%
Less Government Holidays

Pay Commission Denies reports on "interim report"

The Pay Commission has denied the submission of any interim report to the Government on pay scales and other issues as has been reported by a section of the Press। The new pay scales has been posted on many of the regional News papers and transalted version posted in this blog ( The denial has come on 10th October, 2007. The denial has been posted in commission website.
Disclaimer : Reports have appeared in a section of the media that the Sixth Central Pay Commission has submitted interim reports and some newspapers have even published replacement scales supposedly recommended by the Commission. It is clarified that the Commission has not submitted any interim report or recommendations. It may be recalled that the Commission was notified on October 5, 2006 and is expected to give its report within the stipulated time of eighteen months.


Space, atomic energy department chiefs retirement age increased to 66

The union cabinet Thursday gave the go-ahead for a four-year extension in service to the chairman of the Space Commission, the Atomic Energy Commission, and the secretary, Department of Space and Atomic Energy, from the present age of 62 to 66.The cabinet would make the necessary amendment soon, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters.The extension is in the interest of the public and would ensure effective implementation of the plans and programmes of vital national importance in the field of space application and atomic energy, he said.The cabinet also approved rewarding scientists and engineers for excellence, enhancing their housing facilities, and giving them the necessary promotions as a means to encourage them.'The approved career attractions will benefit the Department of Space and Department of Atomic Energy to attract and thereafter retain scientists and engineers,' the cabinet said.

Group ‘D’ staff to join nationwide strike

The Puducherry Government Group ‘D’ Employees (central) Association on Wednesday announced its decision to join the proposed nationwide strike called by the Central trade unions and the Confederation of Central Government Employees Union to highlight their demands.

Addressing reporters here, general secretary of the association G. Madhialagan said the association leaders would hand over the strike notice to the authorities on October 17 after staging a demonstration in front of the Chief Secretariat. The association demanded an interim relief of Rs. 1,000 pending recommendation of the Sixth Pay Commission, implementation of the earlier pension scheme and to stop appointment of private security guards in government departments. The association wanted the government to fill the posts of record keepers in various departments.

Babus want pvt sector salary with govt perks

An articlke that came in Business Standard

Officers of the elite Indian Administrative Service (IAS) want their pay scales to be determined on the basis of prevailing market rates, quite like what happens in the private sector.

However, they are not ready to give up the substantial perks they enjoy, like palatial bungalows in city centres, number of attendants, guards, drivers and other assorted facilities.

In its reply to a questionnaire from the Sixth Central Pay Commission, the Delhi-based Indian Administrative and Civil Service (Central) Association has said, “The basic pay of a Secretary to the Government of India should be such that he can afford to take at least one international private trip per year with his family and travel long distances within the country for social cause, without seeking any obligations or favours from any private or other agencies.”

The Commission is in the process of finalising its recommendations on pay hikes for central government employees. Its repo…

What kind of a pay raise can we expect out of the Sixth Pay Commission?

About 35 percent! The Deccan Herald report quotes "sources familiar with the draft recommendations," so this estimate is speculative. But it's also in line with our experience with the previous Pay Commission. As per a draft recommendation prepared by the Pay Commission, gross salary increases which would be implemented with retrospective effect from January 1, 2006, would be in the range of 30 to 35 per cent of the existing salaries. According to sources familiar with the draft recommendations already prepared by the Pay Commission, the basic salary of the Cabinet Secretary — the topmost civil servant of the Government of India — is proposed to be Rs 80,000 as against the existing basic pay of Rs 30,000. Coming back to academic salaries, a fresh recruit at the Assistant Professor level can expect a gross salary (without house rent allowance) of about Rs. 35,000 from the current Rs. 25,000. Clearly, this sort of raise, while it does have its benefits (!), is nothing to…

Left opposes performance-linked salaries

Yet another idea mooted during the United Progressive Alliance government — to introduce performance-linked salaries for government employees — has raised the hackles of the Left-backed trade unions.
Reacting angrily, the unions said any move to this end would hurt the interests of employees at lower levels of the hierarchy.
“The proposal of performance-linked salary for a government employee is illegal, illegitimate and unconstitutional. Basic salary cannot be linked with performance. There can be a performance bonus, as prevalent in some industries, but that should not be a part of the salary,” said Gurudas Dasgupta, general secretary, All-India Trade Union Congress (AITUC), which is affiliated to the Communist Party of India (CPI).
However, even as the Left-supported trade unions expressed strong opposition, the Congress-linked Indian National Trade Union Congress (INTUC) supported the idea.
The Sixth Pay Commission is examining the feasibility of introducing performance-linked pay…

"Shape Up or Ship Out" - Will the Sixth Pay Commission have shocks for Indian 'Babus'?

From what the Chairman Justice B N Srikrishna has stated in an interview to Gfiles, the magazine, exclusively devoted to the 'Babus', it looks as if the Indian bureaucracy may have shocks when he submits the Sixth Pay Commission Report next April. Justice B N Srikrishna, who is nationally known as the head of the Court of Inquiry of the Report on the 1992 Bombay riots, has told the Gfiles that his message to the Government of India civil servants is to "Shape Up or Ship Out". That would be his "Mantra" in preparing the Report. He has the terms of reference to go by in preparing the Report: focus on 'good governance' which will seek to 'spruce up' to provide cutting edge administration. He hopes to rationalize existing pay structures and work out a pay package that will promote efficiency and productivity. Please do not bank on automatic increase in scales. He is keen on "performance related incentives" that are over and above th…

New Pay Scales recommended by Sixth Pay Commission

The new pay scales as provided in Malayala Manorama.
Please note that there may be some mistakes as the chart provided in the daily was not very clear Old ScaleNew ScaleGroup1.2550-55-2660-60-3200S16500-150-9500Auxiliary Staff- Gr D2.2610-60-3150-65-35403.2650-65-3300-70-4000S27000-200-130004.2750-70-3800-75-4400(D)2750-70-3800-75-4400 (C)S37500-250-12500Supporting Staff – C5.3060-75-3950-80-45006.3200-85-49007.4000-100-6000S410000-300-175008.4500-125-70009.5000-150-8000 C/B N/GS512500-400-22500Supervisory Staff, B/NG10.

Pay Commission Recomentations

Today one of the leading vernacular dailies of the country - Malayalam Manorama also published the recommendations of the sixth pay commission. Most of the recommendations are same as that cam in Mathrubhumi last week ( ). It says that the commission had recommended to make the minimum basic scale as 8500-275-11,800. But the Finance ministry didn't accept that. Following this  the commission recommended for 8000 as minimum basic, which was also not accepted by the ministry. As per the initial recommendation the pay scale Cabinet Secretary was 1,25,000 which was not accepted.The main points in the recommendations are The number of pay scales would be reduced from existing 38 to 16After implementation from 2006 Jan to Dec, no DA will be given. DA will be given from 2007 JanThe retirement date of the employees will be unified as on Dec 31 irrespective of the month they joined.The increments for all employ…

Pay Commission mulls pay for performance

IIM-A group to study feasibility of new salary model.
The sixth central Pay Commission is examining the feasibility of introducing performance-linked salaries for government employees.
The commission has constituted a study group headed by Indian Institute of Management -Ahmedabad Professor Biju Varkkey to develop a model on these lines.
The study group has submitted interim reports and was expected to send its final report soon, a Pay Commission official told Business Standard. The group is expected to evolve a system of linking performance-based pay to the actual delivery of services to citizens.
Declining to reveal details of the interim findings, the official added that the Pay Commission’s report will be submitted next March, slightly ahead of the original deadline of April 2008.
Performance-linked pay is a marked departure from the present practice. If implemented, it will align government pay more closely to corporate sector compensation practices.
Pay increases for both centra…