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Friday, February 29, 2008

Chidambaram talks positievly

The Sixth Central Pay Commission will submit its report by March 31 this year.

Presenting the Budget proposals for 2008-09, Finance Minister P Chidambaram expressed confidence about this year's people friendly budget.

Chidambaram stressed that the report will meet the ''legitimate expectations'' of government employees.

Submission dates are officially announced

Sixth central pay commission to submit report by March 31, 2008. FM in Budget speach 

25% pay hike for govt staff? PC will give some hints today

Government employees, get ready to hear the first word on the much-awaited pay hike!

While the Sixth Pay Commission is yet to finalise its report and it's likely to come in only in April, Union Finance Minister P Chidambaram is expected to provide the first indications on the Union Budget on Friday as to what kind of a pay increase is on the cards for the 40 lakh government employees.

The government on Wednesday said the Sixth Pay Commission would submit its report by April 4.

The Railway Budget has made an ad hoc provision of Rs 5,000 crore for 2008-09 to meet additional liability towards employees and pensioners in anticipation of the Pay Commission recommendations. The Union Finance Minister is also going to announce a similar provision in the Union Budget.

Reading from the Railway Budget provision of Rs 5,000 crore for 14 lakh employees on an estimated current outgo of Rs 46,379 crore, analysts say the pay hike for the government employees could be in the order of 20-25 per cent.
Source : http://www.ibnlive.com/news/25-pay-hike-for-govt-staff-pc-will-give-some-hints-today/60086-3.html

Wednesday, February 27, 2008

So you have a big increase... : Planning Commission Chairman

Deputy Chairman of Planning Commission Montek Singh Ahluwalia has said that an advance on salaries of state government employees would not seem to disrupt state finances.

”I don't think that the impact of this disruption is going to be all that crucial,” he said on the possible impact of adoption of the Sixth Pay Commission award by the state governments.

The report is likely to be submitted by early April.

“The state governments would be under pressure to revise the salary of state employees once the Pay Commission submits the report. Pay Commissions are constituted once in 10 years and blind adoption of the Pay Commission award by the state governments will not be a good idea,” Ahluwalia said.

“Since the Dearness Allowance (DA) does not adequately take care of inflation, the government was made to affect a big increase in salaries of its employees at the end of 10 years. So at the end of 10 years, the government will be benefiting from a squeeze in real pay because the DA was never enough... So you have a big increase," he said.

In anticipation of the Pay Commission recommendations, the Railway Budget has made an ad hoc provision of Rs 5,000 crore for 2008-09 to meet additional liability towards employees and pensioners.

Sixth Pay commission : Some Calculations

The recommendations of the Sixth Pay commission are expected to cost the exchequer a minimum of Rs 18,000 crore, if the Rs 5,000 crore provisions in the Railway budget towards this end are any indication. The Sixth Pay Commission is expected to submit its report by April 4, 2008.

The government’s total employee strength is around 5.4 million and the Railways employ 1.5 million. The Defence forces employ over 2 million personnel. This would mean that the additional burden for non-defence personnel would be about Rs 6,600 crore. This apart, the additional cost of implementing the recommendations for about 2 million Central government employees would be another Rs 6,600 crore. Though comparable, this is slightly lower that the Fifth Pay Commission’s recommendation of around Rs 21,000 crore. The Fifth Pay Commission submitted its report in 1996.

Railway minister Lalu Prasad had made a provision of Rs 1,250 crore for the interim Pay Commission report last year. The commission did not, however, give any such award. In a written reply in the Rajya Sabha today, minister of state for finance K Bansal said, “The Pay Commission headed by Justice B N Srikrishna is to finalise and submit its Report within 18 months of its constitution, that is by April 4, 2008.”

The RBI has sounded a word of caution by suggesting that the state governments should not adopt the pay panel recommendations unmindful of their capacity to bear the additional burden. The states need to base their decisions relating to salary levels after due consideration to their fiscal capacity, employee strength, population size and required complementary expenditure for productive employment, the RBI said in its recent analysis of the state government finances.
Source : Indian Express

Tuesday, February 26, 2008

Government Clarifies : Sixth Pay Commission will submit its report by April 4.

The government on Tuesday said the Sixth Pay Commission will submit its report by April 4.

"The Commission is to finalise and submit its report within 18 months of its constitution, that is 4th April, 2008," Minister of state for Finance P K Bansal told Rajya Sabha in a written reply.

About implementation of the Pay Commission's recommendations, Bansal said, "since the report is to be submitted, the time frame for its implementation cannot be stated".

With regard to the terms of reference of the Sixth Pay Commission, he said the Commission is examining the desirability and need to sanction any interim relief till the time its recommendations are made.

On media reports about a huge hike in salaries of civil service staff, Bansal added that the Commission is yet to finalise and submit its report, so the information doing the rounds in media might be speculative.
Source : http://www.hindu.com/thehindu/holnus/000200802261621.htm

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

Sunday, February 24, 2008

Sixth Pay Commission - Implementation likely in the recess in the Budget Session : Zee News

The article in Zee News suggest that the sixth pay commission recommendations may be implemented next month

It seems the party has already made up its mind, as Finance Minister P Chidambaram has reportedly asked for the Sixth Pay Commission’s report to have a look at its recommendations. The government is planning to implement the recommendations during the recess in the Budget Session of Parliament so as to please government employees.

Article : http://www.zeenews.com/articles.asp?aid=426438&sid=ZNS

A.K. Antony hopeful of better pay

Defence Minister A.K. Antony Sunday hoped for a better pay package for the armed forces, and said government would spare no efforts to modernise India's military speaking during the visit to Laungewala (Rajasthan) on 24 February 2008.

"We are now expecting a better package (from the Sixth Pay Commission that has been set up to revise pay and other benefits of government employees)," he added.

"In an age of nuclear families, it becomes very difficult for your loved one back home. We are making sincere efforts to construct more married accommodation so that families are adequately taken care off when you serve in field areas," the minister said.

RBI cautions states against blindly following 6th Pay panel

Ahead of the Sixth Pay Commission report, the Reserve Bank of India (RBI) has sounded a word of caution by suggesting that the state governments should not adopt the pay panel recommendations unmindful of their capacity to bear the additional burden.

RBI's suggestion comes about a month and a half before the Sixth Pay Commission is scheduled to submit its report on a new pay structure for the central government employees and pensioners.

The states need to base their decisions relating to salary levels after due consideration to their fiscal capacity, employee strength, size of population and the required complementary expenditure for productive employment, the RBI said in its recent analysis of the state government finances.

Referring to the general tendency of states to by and large follow the central pay commissions, the report by the apex bank has pointed out that the state finances experienced deterioration in the latter part of 1990s subsequent to adopting the recommendations of the Fifth Pay Commission for their employees.
News : Economic Times

Wednesday, February 20, 2008

Sixth Pay Commission - Indication in 10 days : Times of India

The long wait of lakhs of Central government officers and staff is about to end as the Sixth Pay Commission is expected to finalise its report "very soon," well before its term ends on April 4.

Even before the pay panel submits its recommendations to the government, the first indication of what is in store for officialdom could be available in 10 days' time when Finance Minister P Chidambaram makes his Budget speech.

Since the employees' fortunes are almost certain to be touched upon, the commission is keeping its recommendations a closely guarded secret, although speculation on the quantum of salary hike have ranged from a moderate 30% to a highly optimistic 165%.

Apart from his speech itself, the actual allocation by the Finance Minister under the head: salaries and pensions, may well be another indicator of what is in store for employees. But even before the February 29 Budget, the Rail Budget, commission sources said, could come as an eye-opener as well as the "profit-making" railways is looking for ways to meet its expected salary and pension bill of Rs 9,000 crore in the light of possible salary changes and a tight-fisted Finance Ministry.

A pre-Budget meeting of the commission is being awaited and this could be scheduled to consequently enable the Finance Minister to make a mention of possible hikes for lakhs of employees, including those in defence and paramilitary forces. Sooner or later, the state governments across the country revise salary structures of their employees in accordance with what is accepted at the Centre.

Commission sources did not rule out a pre-Budget formal presentation before Chidambaram but added that the panel was "unlikely" to make a mention of any change in the present retirement age of 60 years.

"There are two distinct processes - the commission recommending a salary structure and the government accepting the proposals. The commission has interacted with a large range of players, held wide-ranging meetings, received petitions and paid visits to different parts of the country. The outcome of this prolonged process would be reflected in the recommendations," the sources said.

Tuesday, February 19, 2008

The pen drive rumour on sixth pay commission

From comment to the previous post posted by Mr Sudhir
JUSTICE S.N. Srikrishna, chairman of the Sixth Pay Commission, on Tuesday handed over a pen drive containing the panel’s interim report to finance minister P. Chidambaram.

Ministry officials were tight-lipped about the report. “It will not be announced as we are in the midst of preparation for the 2008 Budget. Wait till February 29,” said an official.

Members of the pay commission, including Srikrishna, are likely to meet Chidambaram on Saturday to explain the details of the interim report to senior officials of the ministry. According to indications, finance secretary D. Subba Rao, expenditure secretary Dr Sanjiv Mishra and other senior officials will be present at the meeting.JUSTICE S.N. Srikrishna, chairman of the Sixth Pay Commission, on Tuesday handed over a pen drive containing the panel’s interim report to finance minister P. Chidambaram.

Ministry officials were tight-lipped about the report. “It will not be announced as we are in the midst of preparation for the 2008 Budget. Wait till February 29,” said an official.

Members of the pay commission, including Srikrishna, are likely to meet Chidambaram on Saturday to explain the details of the interim report to senior officials of the ministry. According to indications, finance secretary D. Subba Rao, expenditure secretary Dr Sanjiv Mishra and other senior officials will be present at the meeting.

http://www.mailtoday.in/epapermain.aspx?queryed=9&querypage=2&boxid=278554936&parentid=2718&eddate=02/13/08

Sixth Pay Commission - 40% hike + retire at 62 : The Economic Times

Government officials could expect a hint of their new pay structure in the Budget. Finance minister P Chidambaram is likely to make an indicative announcement with regard to implementation of the Sixth Pay Commission recommendations.

While the actual report may be given later, the commission headed by Justice B N Srikrishna is understood to have conveyed the relevant information to the finance ministry. The government may make an announcement on its intent to implement the recommendations in the Budget, sources said.


This is the last Budget of the UPA government and, politically, it wants to give out the right signals to government employees. The commission was set up by the finance ministry following an announcement by Prime Minister Manmohan Singh.

The Sixth Pay Commission's recommendations are expected to result in a hike of 30-40% in basic salary of central government employees in various categories. In the current fiscal, the outgo on account of pay and allowances for the government — with an employee strength of over 3 lakh — has been pegged at Rs 46,379 crore.

Sources said the recommendations could also include increase in the retirement age of government employees to 62 years from 60. The commission had called senior bureaucrats to give a presentation. A hike in retirement age would help the government in postponing its pension liabilities by two years. However, a final decision on this would be taken at the highest political level. The government had last raised the retirement age in 1998 to 60 from 58 years when the Fifth Pay Commission recommendations were accepted.

In fact, a number of ministries had written to the department of personnel & training (DoPT) about increasing the retirement age for select categories. DoPT forwarded the proposals to the ministry of finance, which in turn asked the Sixth Pay Commission to look into it.

Some of the state governments also understood to be in favour of increase in retirement age. This is because they can suit if the Centre decided to implement the recommendations.

On the other hand, many young civil servants in various ministries are seriously thinking of leaving the government and seek greener pastures in the corporate sector if there is no noticeable increase in their compensation. Some fear that the Commission might end up making some restructure of various components without a significant increase in their salaries.

Besides evolving a comprehensive package including retirement benefits for all government employees excluding RBI officials, the commission is also expected to recommend how to make government organisations more people-friendly and sophisticated. The commission will also advice the government on whether there should be performance linked bonus for employees instead of the present ad hoc bonus scheme. The commission will also assess the impact on central and state government finances if they are to implement the recommendations.

Sunday, February 17, 2008

Govt banks on pay panel to stop flight of IAS officers

The recommendations of the Sixth Pay Commission on salary hike for government employees may not be able to stop IAS officers from leaving their coveted service to join the corporate sector. Many IAS officers are expecting not more than 30 to 35% hike in gross salary, which they say, would not be enough for them to continue in the service, sources close to the development told SundayET.

The Sixth Pay Commission will submit its recommendations next month, and the pay hike will be effective from January 1, 2006. The government is, however, banking on the forthcoming pay commission’s recommendations on salary hike to improve retention in the Indian Administrative Service (IAS) among other central services.

Satyananda Mishra, secretary, ministry of personnel, hoped that the retention in the service would increase once the forthcoming pay commissions recommendations are implemented.

“The number of officers who have put in their resignations is not so large as to be a matter of great concern for the government. The pay commission is looking into the issue of incentives to the government servants, which should improve the retention in the service,” the secretary said.

In fact, many not-so-happy IAS officers, mostly at the level of directors and joint secretaries in the Central government, have been waiting for the right opportunities.

“Even after the pay commission, the wide disparity between the pay package of a top private sector executive and a senior government official will remain. I feel, more and more officials will join the corporate sector in coming years,” said a serving IAS on the condition of anonymity.

Whereas the performance-based variable pay-outs are likely to be introduced for the first time in the government, the government has already worked out a few initiatives to make the IAS and other central services officers happy.

In fact, the All India Services (performance appraisal) rules, 2007, was notified mainly to motivate good officers, and to ensure that better performance or lack of performance gets fairly reflected. “It will establish a more clearly defined linkage between the performance appraisal system and the experience of officers,” said the secretary.

Thursday, February 14, 2008

IAF hopes for better pay packets to tackle pilot shortage

The Indian Air Force is hoping for higher pay packages to overcome the shortage of around 300 pilots in its ranks.

"There is a slight shortage, between 250 and 300, of pilots in the force but the situation is not alarming," Air Chief Marshal F.G. Major said here Thursday.

Better pay packages for pilots will help attract talent and overcome the shortage, he told reporters on the sidelines of the International Flight Test Seminar organised by the Aircraft and System Testing Establishment (ASTE) here. "We hope the Sixth Pay Commission will give a boost in this regard," Major said.

The Air Force has also introduced a short-term service of 14 years for pilots as part of the plan to overcome the shortage, he said.

This will also help the growing civil aviation sector as there will be a pool of trained pilots discharged from the Air Force after the short term service, Major said.

Earlier, Minister of State for Defence M.M. Pallam Raju inaugurated the seminar. Speaking at the function, he said the three armed forces - Army, Navy and Air Force - together were short of 12,000 officers.

Raju urged the state governments to look after the Sainik Schools as they were the major contributors of talent to the armed forces. The support to the armed forces in several states on this matter was inadequate, he said.

RBI for raising govt revenue for meeting pay panel liability

Raising concerns over the likely impact of Sixth Pay Commission on economic growth, the Reserve Bank on Thursday said the government should meet the additional outgo by increasing its revenues.

"In the interest of continuing with the growth momentum, it is essential that the impact of the Sixth Pay Commission (SPC) be absorbed without impairing the process of fiscal consolidation," RBI deputy governor Rakesh Mohan said while delivering a lecture at the Institute of Economic Growth (IEG) here.

Pointing out that the Pay Commission award could increase the expenditure of the Centre and states by one per cent of Gross Domestic Product, he said the government should continue its efforts to improve tax compliance.

In addition, he said, the government should endeavour to contain subsidies and levy appropriate user charges to augment non-tax revenues to adhere to the targets prescribed in the Fiscal Responsibility and Budget Management Act.

He also said that unlike the situation that prevailed at the time of the Fifth Pay Commission (1996-97), the SPC would be implemented when the economy is on a high growth trajectory, coupled with tax buoyancy.

The SPC, appointed by the UPA government for central government employees and pensioners, is expected to submit its report in the next few months.

Monday, February 11, 2008

Sixth Pay Commission report this week?

Is the sixth pay commission report to be tabled this week?  The report by financial Express published indicates that the sixth pay commission headed by Justice BN Srikrishna is expected to submit its report this week.
Report : http://www.financialexpress.com/news/Pay-panel-estimates-150--civil-service-salary-hike/270980/

Sixth Pay commission to gear up for a spending spree

Pay commission awards are celebration time for government employees and the companies selling goods and services to this class of consumers.

When the government implemented the Fifth Pay Commission (FPC) awards, it resulted in a mad rush at car showrooms and a boom in sales of consumer durables. Marketers hope the families of the 4-million-strong central government workforce will fuel consumption once again.

The finance minister is expected to announce an interim award in anticipation of the final report by the Sixth Pay Commission (SPC), which is likely to reach his table by April ’08. This may be one way for the government to spread cheer among voters in the run-up to next year’s general election.

SPC recommendations are expected to be very generous. Early indications are that the commission may recommend a three-and-a-half times jump in the basic salary of central government employees. The increase will be subsequently applicable for state government employees, defence personnel and those working in public sector undertakings (PSUs).

In all, it is estimated to affect nearly 20 million families and households. Previous pay commissions increased salaries by approximately three times that of the existing ones. Considering past record, we can assume that the government’s wage bill based on SPC recommendations will increase three-fold.

Even if the FM agrees to pass on a fraction of the expected award in the budget recommendation, it will lead to thousands of crores of additional disposable income in the hands of government employees. While they may choose to save part of this windfall, a significant proportion of this is likely to be spent on new purchases, as had happened when the FPC recommendations were implemented in 1999-00.

The FPC had recommended a 31% increase in base salaries, effective from 1996. As the arrears of payments recommended by this commission were also made during 1999-00, this significantly improved the level of personal disposable incomes.

The impact of this can immediately be felt on consumption of consumer durables. The revenues of companies selling white goods, bikes and cars showed a 15% jump on average during FY00 (see adjacent chart). This was despite a general economic slowdown in the economy during 1997-01.

The growth was most striking in the case of car and two-wheeler makers, probably because personal transport has a higher aspiration level compared to home electronics and white goods. Bajaj Auto, Maruti Suzuki, Hero Honda and TVS Motor posted improved sales for FY00. If Hero Honda is excluded from the list, the trend emerges more clearly, showing a higher spending for FY00 than the later years.

There’s no reason to believe why the situation will be any different this time. In fact, SPC’s impact on corporate earnings is likely to be even better, as the economy is chugging along nicely, unlike 1999-00.

Among listed companies, Maruti Suzuki is likely to be the biggest gainer, followed by Tata Motors, Hero Honda and Bajaj Auto. Hence, it’s no surprise that ’08 is likely to see maximum number of new product launches by auto makers. Home builders such as DLF, Unitech and Sobha Developers are also likely to be on the watch list.

And how can we forget consumer durable makers such as Videocon Industries and Mirc Electronics, among others? Higher disposable incomes can also induce households to upgrade to premium brands in personal care and non-durable consumer goods. This will be positive for companies like ITC, Hindustan Unilever, Dabur, Marico and Godrej Consumer, etc.
Source : Economic Times

Saturday, February 9, 2008

Pay panel estimates 150% civil service salary hike

Government salaries may literally give India Inc a run for its money, if one of the latest estimates of salary revisions by the Sixth Pay Commission is to be believed. Basic salaries are likely to rise by over 150%. However, the actual payout may be more moderated, as inclusive of all allowances, existing salaries are not far below the new slabs.

Section officers will get a starting basic salary of Rs 20,000, while their department heads, joint secretaries, would get a fixed basic salary of Rs 60,000 a month. Basic pay for section officers currently begins at Rs 8,000 a month.

Secretaries to the government would earn a fixed salary of Rs 75,000 a month. A cabinet secretary’s monthly salary would also be fixed at Rs 80,000. At each grade, the 5.5 million central government employees would earn an inflation-neutralising dearness allowance (DA) of 6% of basic. The minimum scale for non-executives is likely to be hiked to Rs 6,500 a month, from the present Rs 2,550 a month.

The buzz around the Sixth Pay Commission has grown louder with the panel headed by Justice BN Srikrishna expected to submit its report next week. The good news, however, may just stop here. Contrary to expectations, government officials will continue to retire at 60 years. The plan to increase the retirement age has been shelved, according to the Pay Commission estimates, a copy of which is with FE. The Commission, though, is expected to recommend that officials will now retire on December 31 of the year they reach age 60.

Other allowances—including DA, house rent and travel benefits, linked to basic pay—would also increase. DA would be hiked by 6% retrospectively from January 1, 2007 and 14% from this year, according to this estimate. House rent is proposed to be hiked by 30% of basic for metros, but with a cap of Rs 12,000. While the recommendations are effective from January 1, 2006, arrears would be given only from January 1, 2007.
Source: Financial Express

The outlook for Babus, as visualized by the Department of Personnel Chief Satyanand

The gulf between the salary structures of the private and government sectors is likely to continue even after the implementation of the next pay commission, if one is to go by the views of Satyanand Mishra, Secretary of the Department of Personnel and Training.

Satyanand Mishra, interviewed by the G Files, argued against comparing the salaries of government officials with those in the private sector. He said: “In the private sector, every activity of every individual is monitored in monetary terms. In government, such a system does not exist. Here, work is work.”

He pointed out that the fundamentals of private and government jobs differ. “The government is socially oriented while private entrepreneurs are profit-oriented. After implementation of the Fifth Pay Commission, the pay structure has changed considerably. The Group A-service officers get transport, accommodation, telephone and job security,” Mishra added.

As the Sixth Pay Commission is due to submit its report in March. Satyanand Mishra, in a meeting with the Commission, has presented the major concerns of government officers.

“The Sixth Pay Commission will submit its report in March. We were the first to interact with the Commission. I told them what my colleagues feel. Our present pay scale is incremental. But, when you start your career you need more money for marriage, old parents and growing children. Ironically, when the requirement is high, the money is less. After 30-40 years of service, you have money but the requirement is less.”

Satyanand Mishra reflected the government’s concern over increasing number of officers wanting to shift to the private sector. He pointed out that on November 28 last year a circular was issued to the effect that no IAS officer can work in a company registered under the Companies Act. Now all that Babus can hope is to work for Public Sector Undertakings and semi-Government organizations. One reason put forward for this was that when the government official returned to his desk in the Government there was a ‘sense of mistrust’. The clock has been put back.

The government is also concerned about ‘political victimization’ of civil servants. Satyanand Mishra says “The Prime Minister himself is concerned”. The only answer is to provide for a two-year tenure for all the cadres.

But how to implement them is the concern of all. The recent controversy when some young IAS officers were suspended became a subject of public exchanges between the Governor of the State and the Chief Minister. The Department of Personnel is asking the State Governments to record justification of transfers before the two year term ends.

Meanwhile, as Satyanand Mishra accepts, “more officers are going on leave and rejoining” The officers, who leave, say that they want job satisfaction, to stay at one place, and to give better education for children

Do not expect any dramatic change in the present system, even after the next -- that is the Sixth-- Pay Commission submits its recommendations. As another article in the issue points out the Fifth Pay Commission gave its recommendations on the eve of Parliamentary elections and even the Left Parties wholeheartedly supported the implementation of the recommendations.

Monday, February 4, 2008

Army chief hopeful of 'decent' pay package for personnel

Army chief General Deepak Kapoor on Monday said the military was expecting a "fairly decent" pay package for its personnel after the Sixth Pay Commission comes out with its recommendations.

"We are awaiting the Sixth Pay Commission recommendations. We hope for a fairly decent package to make the armed forces attractive to the youth who are entering the job market," Kapoor, who is here on an official visit, said.

Admitting that young officers were leaving the army for more lucrative offers, especially in the private sector, Kapoor hoped that a revised salary package would attract more youth to join the force.

The army chief said he had already met with officials of the Pay Commission and their response to the army's demands for a pay hike was positive.

"We need to have a reasonably large pool of educated youth available and emoluments have to be attractive to attract them as the corporate sector was giving a much better package," he noted.

Source : The Hindu

GoM to take up paramilitary pay

The demand to separate hardship and counter-insurgency allowances to para-military forces would be discussed at a meeting of the Group of Ministers headed by Union minister Mr Pranab Mukherjee.
The meeting would consider the demand of the Central para-military forces to treat them at par with the Army, whose personnel were treated differently in matters pertaining to their post-retirement benefits. The demand was that their pension scheme be commensurate with the difficult service conditions.
It may be recalled that the last meeting of the GoM was held in August last year but no decision was taken.
The para-military forces, both the BSF and the CRPF, which was posted in several states to fight terrorism and insurgency in several states, have sought grant of special allowances for their personnel to cover the risk factor.
The demands are among a host of proposals submitted by the forces, engaged in counter-insurgency operations in the North-East, Jammu and Kashmir and also fighting extreme left groups was before the Sixth Pay Commission. The suggestions, aimed at attaining parity with defence personnel included increase in disability pension for those injured, hike in percentage of family pension paid to widows and also to change the pension rules. The BSF, it was understood to have sought hardship allowance amounting to 40 per cent of the basic pay to those posted in "extreme hard areas" like Jammu and Kashmir and 35 and 30 per cent respectively for those deployed in hard and very hard areas. It has said the force posted in border areas face all sorts of hardships like "isolation, natural hazards, limited facilities and adverse climatic conditions." It has categorised North-East as a "very hard area" and the western frontier as "hard".
An internal survey conducted by the force has found that the satisfaction among its personnel posted in border areas with regard to accommodation and working hours was as low as 12.5 per cent.
The CRPF also wants 10 per cent of the basic pay as hardship allowance to those personnel deployed in Jammu and Kashmir and the Naxal-infested Chhattisgarh. This itself covers nearly 86 per cent of the Force.
A hike in compensation package has been sought for those dying in action to Rs 30 lakh from the present Rs 7.5 lakh. Increase has also been sought in pay-scale and provision of a pension scheme.
Both the forces are of the view that inclusion of its personnel who have joined the service on or after 1 January 2004, in the new contributory pension scheme launched by the government was unfair.

Sunday, February 3, 2008

CANSSEA brings out key points of pay commission

The Confederation of All Nagaland State Services Employees' Association has brought out what it stated are 'key indicators' recommended in the summery report of the Sixth Pay Commission. The report was submitted to the Government of India by the commission chaired by Justice BN Srikrishna. Vice president of the CANSSEA AC Hazarika in a note highlighted the recommendations. They include the new scale stated to be operative from 1st January 2006; the reduction of the number of pay scale from 38 to 16 as well as the retaining of the disparity ratio of salary between minimum and maximum at 1: 1.2.3. The note also mentioned that for the 'top-most' civil servants in the country, the basic pay is recommended to go up from Rs. 30,000 to Rs. 80,000 per month. At the lowest end, the existing basic of Rs.2550 is proposed to Rs. 6500 for Group 'D' employees. The report also highlighted that all employees are to get an annual increment on January 1 every year while all retirements are to take place on the last day of December.

Further, it was recommended that DA be given once in a year in January instead of present two installments on January and July while Provident Fund is proposed to be revised to 10% of basic pay and DCRG at16.5 M/33 BP +DA is proposed to go up from Rs. 3.5 Lakh to Rs.9.00 Lakh. Pension is retained at 50% of LPD subject to a maximum of Rs. 40, 000 against Rs. 15,000 at present. Family pension is retained at the same rate 30% subject to a maximum of Rs. 24, 000 per month in place of Rs.9, 000 at present. No change is proposed in regard to commutation of pension which is retained at the same rate of 40% as the past.

Further, Earned Leave is recommended to be enhanced to 360 in place of 300 days at present while the fitment benefit from 1st January 2006 shall be 30% B.P. + D.P. +D.A. However, the usual provision (Rule) of granting 1 increment for 3 increments is proposed to be done away with. Also, the overall benefit in the pay package is estimated to be minimum 35 percent against 50 percent as demanded by Unions/Associations. "However, some changes on the recommended structure and package in due course of time cannot be totally ruled out since experiences in the past have proved amply so" the CASSEA added.

Source : Morung Express