Tuesday, February 26, 2008

Employees’ ambition: 6th Pay Commission

With union budget 2008 drawing nearer, the government employees are eagerly awaiting the announcement on the Sixth Pay Commission likely to be made by the Union Finance Minister P Chidambaram.
 The sixth pay commission headed by Justice B N Srikrishna has made a number of employee-friendly recommendations. Apart from recommending 30 to 40 percent hike in the central government employees' basic salaries the commission has proposed some major amendments in the pay structures and the services of the employees.
 Currently there are 38 pay scales. The commission has recommended they be reduced to 16.
 It recommends the dearness allowances should be given from January 2007. The 6th pay commission will seeks to bring uniformity in the date of the employees' retirement. It proposes that the retirement date of the employees should be December 3 irrespective of the their joining date/month.
 Similarly the commission proposes that the increment of all the employees should be given in January. "A notional increment should be given for every three years of service with maximum of three such increments," it says.
 It recommends the percentage of the salary that goes into the general provident (GP) fund should be increased to ten per cent.
 Similarly, it proposes that the house rent allowances in A-class cities should be a maximum of Rs 12000, in B1 and B2 cities it should be 15 per cent not exceeding Rs 8000, in C class cities 7.5 per cent not exceeding Rs 3000, while in case of unclassified cities it should be five per cent not exceeding Rs 2000.
 It proposes the city compensatory allowances at four percent in A-class cities but not more than Rs 1200, three percent in B class but not exceeding Rs 900, two percent in case of B2 class cities but not more than Rs 600.
 The commission recommends that retirement age should stay at 60. Mention to be made that in 1998, when the Fifth Pay Commission recommendations were accepted, the government raised the retirement age of the central government employees to 60 from 58 years.
 It recommends that the maximum pension a retired employee take should be 50 percent of his last salary but not exceeding Rs 40,000. It proposes the leave encashment for 360 days.
 Many employees who spoke to Greater Kashmir said the government should announce the implementation of the commission without any further delay. "The steep inflation has made the life of a common man very difficult. It is high time that government implemented the recommendations," said a central government employee.
Report : Greater Kashmir