Central Government Employees News :: Seventh Pay Commission

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.

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

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...

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...

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, howe...

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

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 ...

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

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.

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 recommendatio...

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 ...

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 ...

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 g...

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 concer...

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...

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 ...

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/

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...

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 aro...

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. Sat...

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 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 e...

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 ...