Monday, September 1, 2008

Pay panel revises education allowance

The modified recommendations of the Sixth Central Pay Commission, notified by the government on Friday, also ensures a rise in the children education allowance besides an increase by 21 per cent on an average in the salaries of the government employees.
Retrospective effect

The revised salaries will reflect in next month’s pay though the report is to be implemented with retrospective effect from January 1, 2006.

The arrears would be given in cash – 40 per cent this financial year and 60 per cent in the next fiscal.

According to the notification, children education allowance will be reimbursed up to maximum Rs.1,000 per child per month subject to a maximum of two children from the present Rs. 50 per child.
Hostel subsidy

Besides, hostel subsidy has been raised to the maximum limit of Rs. 3,000 per month per child from Rs. 300 currently.

Also, these reimbursements would be automatically raised by 25 per cent once dearness allowance on the revised pay bands become 50 per cent of the basic salary, the notification said.

As such, an employee getting Rs. 1,000 would get Rs. 1,250 per child per month and hostel subsidy would increase up to Rs. 3,750 when Dearness Allowance becomes 50 per cent of the basic salary.