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A 40% hike and retire at 62?

The government is considering an increase in the retirement age of government employees to 62 years from 60. The proposal, that would benefit a large number of central and state government employees, is being looked into by the Sixth Pay Commission. Some senior bureaucrats have already given presentations to the commission, explaining how a hike in retirement age would help the government in postponing its pension liabilities by two years. If the proposal goes through, an announcement in this regard can be expected in the Budget, sources said. A number of ministries had written to the department of personnel and 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. The commission asked top bureaucrats to make presentations. It is understood that some state governments are in support of increase in retirement age. If the Centre decides to go ahea...

CPM starts campaign : Asks Govt. to implement sixth pay commission

The CPM on Tuesday said it was closely watching the performance of the UPA government and will continue to guide the government to pursue policies keeping in mind the interest of common man. The CPM has asked the government to implement sixth pay commission. Speaking at a Jan Vikalp Rally organised by the state unit of CPM here on Tuesday, senior leader Sitaram Yechury said the party was forcing UPA government to adopt polices which are in the interest of the common people. He said the CPM prevailed upon the Union government not to implement policies of retrenchment and privatisation. Yechury claimed that UPA government can not function without the support of Left parties. Criticising the BJP, Yechury described it as a communal party. He said BJP was dividing people on the basis of religion and caste for gaining political power. Speaking on the occasion senior party leader Nilotapal Basu said farmers are facing great hardship because they are not getting remunerative prices of th...

Congress may be forced to announce sops

The Gujarat battle has come to an end with the congress in a pathetic condition. Everybody is looking forward towards the next lok sabha elections. Its quite obvious that the UPA - Left will not make a mistake by calling for an early election. The government is expected to announce more sops to satisfy the masses. And the sixth pay commission report may be one such medium. It can also be noted one of the agenda that the BJP fought on Gujarat is the development issue. If the congress also want to project its development achievements, the results of those has top be passed on to the sections on the society. Logically thinking a beneficial report is expected from panel. There are talks that a pay hike of 40-45% can be expected. Also the government has indicated that it does want to retain efficient employees - of course through better packages. The report is expected to be out by March end.

BMS rally in Delhi for interim relief

More than 5,000, Bharatiya Mazdoor Sangh (BMS) workers representing railways, defence, postal, central secretariat, armed forces headquarters, IMD, audit and accounts, currency and coins, etc., under the banner of Government Employees National Federation (GENC) staged massive protest at the Parliament Street in New Delhi on December 11. They were demanding immediate interim relief and publication of the Sixth Pay Commission report with a grant of Rs 10,000 minimum wage per month, scrapping of new pension scheme, stopping of privatisation, lifting ban on recruitment, 100 per cent recruitment on compensate ground to the wards of affected government employees died in service and stopping of outsourcing. They said the recommendations of the Pay Commission should also equally be made applicable to the state government employees and the employees of autonomous bodies. The constitution of a new ministry was also demanded at the central level to look after the functioning and welfare of the em...

Gujarat over and now?

For the political parties, the show on the Gujarat battlefield is over and now it time to capture the hearts of the people before the parliment election which may happen in a short time. One of the main thing that the current government will lookforward is the sixth pay commission report which is going to effect 10 million central and state government employees, besides those in the defence services. And with early trend of the Gujarat going away from the congress, it is expected that the central government will leave no thought in providing better packages to the staff. This has been already told by Union Minister for Urban Development Ajay Maken. He told "The Sixth Pay Commission report will be good for the employees. We do not want efficient employees to leave government services to join the private sector,"

Sixth Pay panel report will be good for employees: Union Minister Maken

The Centre on Sunday promised that the sixth pay commission report would be "good" for the employees as government is keen to provide comprehensive salary packages to attract quality human resource. "The Sixth Pay Commission report will be good for the employees. We do not want efficient employees to leave government services to join the private sector," Union Minister for Urban Development (State) Ajay Maken said. Maken said both Prime Minister Manmohan Singh and Finance Minister P Chidambaram want to provide "comprehensive and good salary packages" to employees as for good governance efficiency of the employees is paramount. He said the report would be ready by March 31 next year.

Sixth Pay Commission in Gujarat Election campaign

To exploit the dissatisfaction in a section of the government employees against the present administration, the Congress, in another advertisement, “reminded” them about the administration running as a “one-man show, treating the employees as slaves, misusing the government employees for useless programmes and functions for personal publicity, misappropriation of public funds,” and other “misbehaviour” of the Modi administration. It promised “justice” and restoration of their “self-respect” and implementation of the recommendations of the Sixth Pay Commission at the earliest.

Now, working for a PSU means you can tell your boss off

Mumbai: Some days, Ashok Sinha spends up to four hours reviewing what employees think of him. In September, the chairman and managing director of Bharat Petroleum Corp. Ltd (BPCL) and senior managers took two weekends to review staff performance and decide on rewards and new roles. Retaining talent: Executives of BPCL at a training session. Oil PSUs are trying to hold back employees with higher pay and promises of overseas travel, more training, growth opportunities and job rotations. “If I don’t do this, I probably won’t have a team left,” says Sinha. BPCL, the country’s second largest public sector refinery, has become proactive in applying new personnel management tools to engage employees. The firm is facing one of the highest attrition rates in the Indian oil industry, although officials declined to say how bad it’s gotten. “Let me just say it has doubled over the last two years,” says S.A. Narayanan, human resources director. With the entire industry troubled by rising attrition...

The Finance Commission (FC) & the Sixth Pay Commission

Comparing the Finance Commission (FC) with the Pay Commission is a bit like comparing an accountant with a movie star. They’re just not in the same league. The Pay Commission hands out goodies by the bagful to a large and vocal section of the population. The Finance Commission, in contrast, does the more prosaic job of, among other things, picking up the pieces after the Pay Commission has done the damage! Even so, when the appointment of the Thirteenth Finance Commission evokes so little interest, even among financial dailies, it can mean only two things. One, the mandate of the Commission, to determine the sharing of tax revenues between the Centre and the states and between states, is seen as a largely settled issue, now that we’ve had twelve FCs and the broad contours of the sharing process have been laid down. Two, buoyant tax revenues, both at the Centre and the states have taken the edge off what has traditionally been a highly contentious issue. Add to this the preoccupation ...

Antony reitrates persuance of better deal for defence personals

"The last Pay Commission has not done justice to the armed forces personnel. We are now trying to get a better deal from the Sixth Pay Commission," defence minister A.K. Antony who is visiting border areas of Sikkim told. Asked about reports of alleged removal of a Buddha statute in the Tawang sector in Arunachal Pradesh, he said though such an incident indeed had taken place, there was no evidence that China had done it.

Heard on Street : Sixth pay commission report by Jan 1st week

        It is heard that the sixth pay commission will submit its report before January first week. The government wants to implement the recommendations before April. The recommendations of the commission is likely to be same as published here. There are also recommendations to retain professional talent. The government is also decided on increasing the retirement age. But this is not under the scope of the pay commission.

Sixth pay commission should take into account inflation

Expressing the view that the present salaries of the Railway employees were not commensurate with inflation, the Southern Railway Mazdoor Union has sought interim relief. In a release here, the Divisional secretary of the Union R.Kesavan said the Sixth Pay Commission should take into account inflation while formulating the recommendations. "The railway employees should be paid on par with the other Public sector undertakings," he said. The recommendations of the commission was likely to be released by April next, he said and demanded that they be implemented immediaetly,failing which they would be forced to resort to agitations, he said.

Indian Railwaymen seeks four-fold increase in the emoluments

The National Federation of Indian Railwaymen (NFIR) will soon chalk out an action plan to achieve its primary demand of a four-fold increase in the emoluments of the estimated 14-lakh workforce by the proposed Sixth Pay Commission. M. Raghavaiah, NFIR general secretary, was speaking to presspersons on Friday after addressing a meeting of employees in connection with the first-ever ‘secret ballot’ of recognised trade unions in the history of railways. The elections will be held from November 26 to 28 in the 16 zones of the railways. Over 13.5 lakh employees will cast their votes. While the main contestants are NFIR and All-India Railwaymen Federation (AIFR), any union that gets 30 per cent of the votes will be declared as ‘recognised’. Mr. Raghavaiah, who is also general secretary of SCR Employees’ Sangh, justified the demand saying a working day of a railway employee was uncomparable with any other job. “About 60 per cent of railway employees work in places that are far away from ha...

Retire at 62, counter pension liability

If implemented, the central government's proposal to hike the age of retirement of its employees from 60 to 62 will defer by two years its pension liabilities of around Rs 14,749 crore (Rs 147.49 billion), according to the Invest India Economic Foundation (IIEF). At the same time, the salary burden on account of the 1,70,000 employees whose retirement will be deferred immediately by two years will be to the tune of Rs 9,784 crore (Rs 97.84 billion) for the two-year period. This includes increments and indexation for future dearness allowance. The calculation, based on data from Invest India Market Solutions (the consulting practice of the IIEF), assumes an average monthly salary of Rs 21,800 under the forthcoming Sixth Pay Commission. The central government had estimated 3,321,210 employees (excluding defence personnel) on its rolls in 2007, with the number projected to go up marginally to 3,329,682 in 2008. According to the Budget estimate for the current fiscal, the total ou...

Debate on for Unified Civil Service

There is no unanimity between different Group-A central services and associations representing the All India Service officers (IAS/IPS) on whether a Unified Civil Service will suit India better. The Sixth Central Pay Commission had sought response from different services on the case for a unified civil service by merging all Central (both technical and non-technical) and All India Services and whether there should be two distinct streams, one embracing all technical services and another for non-technical services. The Indian Revenue Service (Customs and Central Excise) and the Indian Information Service associations supported the idea of unified civil services. The IRS (C&CE) in its memorandum submitted to the Sixth Pay Commission has said "The recommendations of the IRS (C&CE) is to request the Pay Commission to recommend to constitute a Unified Civil Services pool or an Integrated Management Pool, by empanelling officers from various participating Group 'A' se...

Increasing retirement age to 62 : A thought on it

The move to increase the retirement age of government employees from 60 to 62 years, as reported in this newspaper yesterday, can be endorsed on many counts. The average Indian's life expectancy at birth has gone up to over 66 years for men and 71 years for women. The last decision to increase the retirement age of government employees, to 60 years, was taken in 1998, when life expectancy for the average Indian was 63 years. Another increase in the retirement age now, on grounds of improved life expectancy, is therefore quite logical. There is also a social reason for postponing the age of retirement: as youngsters study for more years, they are dependent on their parents for far longer than used to be the case. Many family budgets get strained today because the main breadwinner retires before the next generation is settled in life.   The global practice also argues in favour of an upward revision in the retirement age. Several developed and developing countries hav...

Govt finalising proposal to raise the retirement age to 62

Ten million govt officials, besides defence personnel, to benefit.   In a move that will benefit over 10 million central and state government employees, besides those in the defence services, the ministry of personnel is finalising a proposal to raise the retirement age of central government officials from 60 to 62 years.   If approved by the Cabinet, this will be the second time in nine years that the retirement age will be raised.   "Those who support the proposal feel it should be implemented in order to retain the collective experience. But there are people who say more young people shuld be brought into government services. We are discussing the matter," minister of state for personnel Suresh Pachauri told Business Standard. He declined to specify when the proposal would come before the Cabinet.   In 1998, the retirement age was raised from 58 years to 60, principally as a means of easing pension payments caused by a hefty increase in govern...

Top retired army man suggests pay hike

With the Sixth Pay Commission working on its recommendations, a top former army officer has made a strong case for a 'generous' pay hike to defence personnel saying their turbulent lifestyle, limited career prospects and possibility of loss of life or limb should be taken into account for the purpose. Maintaining that the average number of army men killed annually in active operations was 415 'when no war is being waged', former Vice Chief of Army Staff Lt Gen Vijay Oberoi said almost 5,000 personnel were invalidated on medical grounds every year due to stringent physical standards. Observing that Indian Army had heavy counter-insurgency and counter-terrorism commitments, he said the average length of service of soldiers in such operations amounted to 10.87 years, compared with those in Western nations where it is not more than one year. "Even those who volunteer for additional duties in some western countries do so for a maximum of two to three years throughout...

Scrap Fiscal Act Target to compensate revenue defict by Sixth Pay Commission implementation

The Planning Commission, in its 11th Plan (2007-12) draft, has urged side-stepping the zero-revenue deficit aim by 2009 that is mandated by the Fiscal Responsibility and Budget Management (FRBM) Act. The 11th Plan draft document, which was recently approved by the full Planning Commission, held that maintaining zero-revenue deficit will substantially limit the government''s ability to fund flagship schemes. Finance Minister P Chidambaram has made it clear that the government is bound by the FRBM Act, 2003, which mandates it to cut the revenue deficit by a minimum of 0.5 percentage points every year. In 2006-07, the Centre''s revenue deficit stood at 2 per cent of the gross domestic product. The government has to eliminate this by March 2009. A zero-revenue deficit can restrict expenditure on health and education, which creates human capital. Revenue deficit is the difference between revenue expenditure and revenue receipts. The Prime Minister''s Economic Advisor...

Sixth Pay Commission will not recommend raising retirement age.

The Sixth Pay Commission for central government employees will not recommend raising the retirement age. " No ," finance minister P. Chidambaram said today when asked whether the age, now at 60 years, would be increased. The minister, speaking at a conference of economic editors today, said the commission's report would be handed in by April. Former Supreme Court judge B.N. Srikrishna, who authored the report on the 1993 communal riots in Mumbai, is heading the pay commission. The blow to hopes of a higher retirement age comes days after Planning Commission deputy chairman Montek Singh Ahluwalia argued against revision of salaries by the commission. "There is no case for a pay increase now because erosion of income (because of inflation) is taken care of by indexation (dearness allowance)," Ahluwalia had said. Earlier, the Eleventh Plan (2007-12) document had warned of problems for government finances if the pay hikes were not capped. "With the commiss...

S&T and R&D to be liberalised ?

Planning Commission has admitted that India's investment in R&D remains far below the level required for a country aspiring to emerge as an economic and knowledge superpower. The draft of 11th Plan,likely to be put for National Development Council's approval early next month, also stresses upon the promotion of basic research in science, engineering and medicine as a "critical input" for development. "To promote basic science research in academic and research institutions, there is need of a well-defined focussed approach for building an infrastructure of equipment, facilities in colleges/universities/institutions," says the draft in its chapter 'Innovation and Technology'. Mere investments, the plan panel asserts, would help only partially and there is also a need to increase the efficiency of the delivery system so that resources are made available to R&D groups much faster. It has also called for a "mechanism" which would fo...

No reason to raise pay of govt employees: Panel

The Planning Commission sees no reason to increase the salary of government employees as it feels that wages are already linked to price rise. "There is no case for pay increase (of government employees) because erosion of income is taken care of by indexation," panel's Deputy Chairman Montek Singh Ahluwalia told reporters after the end of the full plan panel meet. "With the Sixth Pay Commission's impact looming large, hard-won gains (on fiscal front) could easily be jeopardised," according to the draft Eleventh Plan document approved by the the Commission. Pointing out that the Pay Commissions were relevant earlier when a large portion of the salary was not indexed, Ahluwalia said the sixth pay panel would take into account the fiscal circumstances while making its recommendations, likely sometime in April next year. The document further stressed it is imperative that utmost vigilance be maintained against any deterioration in the fiscal situation.

Retirement Age

There were rumors in same news papers the the retirement age to be increased to 62 as per the recommendations of the sixth pay  commission. This assumptions was made on the basis of extension of services of space and atomic energy chairmen. However it is learnt the commission does not wish to propose the change of retirement age from the existing 60. Also it is difficult to think that the the government will take a positive step von this ignoring the opposition from the left. However the retirement date will be unified to December 31st. That means an effective increment of of one year for those whose date of birth falls in January. Also the sixth pay commission is planning for an option of re-employment - to utilize the service of experienced professionals. But this will not be an detention of service, rather it will be like a contact.

Performance linked pay. What does it mean?

In his interview Hon'ble Justice Sri Krishna hinted about the performance linked incentives to the central government employees in the sixth pay commission recommendation. It is neither appropriate nor desirable to introduce such a thing. It will give chance to 'chamchagiri' and create a lot of heart burn. Earlier in one of the autonomous scientific organizations such a scheme called "Merit Promotion" was introduced but later withdrawn. Let us hope that the Commission will not provide any loopholes for the employers (superiors) to use more powers at their whims and fancies. The CRs itself is a waste and if we introduce another angle to it, it will create even more problems.

Maharashtra to implement Sixth Pay Commission recommendations without much fuss and delay

It is good news for two million employees of the Maharashtra government as senior officials of the state government have indicated that the state will implement the recommendations of the Sixth Pay Commission without much fuss and delay. But, this means the state exchequer takes a hit of around Rs 4,000 crore to Rs 5,000 crore. The confidence of senior state government officials arose from the booming economy and buoyancy in the tax revenues who had a horrid time while managing the state’s finances at the time of the implementation of the Fifth Pay Commission report. Earlier this week by going on a one-day token strike, by both the Centre and state government employees, for implementation of the Sixth Pay Commission recommendations, unions have managed to bring the issue to the fore. With the shadow of the mid-term poll looming large over the Centre, it is expected that the announcement of the acceptance of pay commission’s recommendations by the Centre will be done sooner than later. ...

Sixth Pay Commission : Does Govt have money for implementation?

The government of India is a big gainer from the surge in the Sensex. The gains are sufficiently large to take care of the potential impact on the exchequer of the recommendations of the Sixth Pay Commission. In conceptual, if not in practical terms, the government is sitting pretty. The market capitalisation of 29 listed PSUs has soared from Rs 2,34,000 crore on June 1, 2004, shortly after the UPA government took over, to Rs 10,90,000 crore on October 24, 2007. The current value of the government’s shareholding in these PSUs works out to a colossal Rs 8,80,000 crore — enough to wipe out a quarter of the total public debt. A mere 10% sale of its portfolio would fetch the government over Rs 88,000 crore. That is around 2% of GDP, more than adequate to cover the immediate impact of the Sixth Pay Commission on GDP, which is expected to be of the order of 1% of GDP. It is the impact of any wage award in the initial two or three years that is lethal. Over time, as nominal GDP rises at aro...

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 s...

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 poss...

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 2008 Provision for extending service of professionals Technical 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 govern...

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 incr...

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 outsourcin...

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. ANOTHER GRAVY TRAIN Designation   (GoI &   equivalent   across   services) 5th Pay Commission   scale   (Rs/month) Including   2004 revision   (50% hike) and     DA at 41 %   (Rs/month)   Likely   increase   from 6th Pay Commission*   Secretary 26000 fixed 54990 75000 ...

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 scale The 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 ...

Sixth pay commission will have no bonanza for babus

An  article that came in Daily News and Analysis NEW 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 emplo...

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 newspape...

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 Hol...

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 ( http://paycommissionnews.blogspot.com/2007/10/new-pay-scales-recommended-by-sixth-pay.html ). 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. 10.10.2007

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 re...

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 t...

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 the...

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 Scale New Scale Group 1.     2550-55-2660-60-3200 S1 6500-150-9500 Auxiliary Staff- Gr D 2.     2610-60-3150-65-3540 3.     2650-65-3300-70-4000 S2 7000-200-13000 4.     2750-70-3800-75-4400(D)   2750-70-3800-75-4400 (C) S3 7500-250-12500 Supporting Staff – C 5.     3060-75-3950-80-4500 6.     3200-85-4900 7.     4000-100-6000 S4 10000-300-17500 8.     4500-125-7000 9.     5000-150-8000 C/B N/G S5 12500-400-22500 Supervisory Staff, B/NG 10.     5500-175-9000 C/B N/G ...