Thursday, August 14, 2008

Pay panel award modification to cost additional Rs. 11,000 crore

Government will pay its 50 lakh strong workforce an additional Rs 11,000 crore over the pay hike of Rs 30,000 crore, including arrears recommended by the Sixth Pay Commission in March.

The modification of the Pay Commission award will cost the exchequer an additional Rs 5,000 crore towards annual wages and Rs 6,000 crore towards arrears, said Expenditure Secretary Sushma Nath.

The original recommendations of the Sixth Pay Commission would have entailed an additional expenditure of Rs 12,000 crore in annual wage bill and Rs 18,000 crore towards arrears.

However, prompted by the protest from several quarters, including representations from the defence forces, the government appointed a high-powered committee under the chairmanship of Cabinet Secretary K M Chandrasekhar to suggest improvement in the Pay Commission award.