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The Union cabinet had issued the much awaited notification for implementing revised recommendations of the Sixth Central Pay Commission (CPC) on Friday night and approved the recommendations made on 14 August. Giving a relief to over 50 lakh government employees, including the armed forces personnel, an enhanced pay packet will be received by them beginning from September 1.

There had been made several improvements over the original suggestions made by the central pay panel. On payment of arrears, the government has modified to the extent that the arrears would be paid in cash in two installments - first installment of 40 per cent this financial year (2008-09) and the remaining 60 per cent in the next financial year (2009-10).

The CPC recommendations and the subsequent government decision with regard to revised scales of pay and dearness allowance for civilian employees of the central government would be made retrospectively effective from January 1, 2006, the notification said.

Experts say that approval of recommendations will require require huge amount of money. It is being said that modification of the Pay Commission award will cost the exchequer an additional Rs 5,000 crore towards annual wages and Rs 6,000 crore towards arrears, said Expenditure Secretary Sushma Nath. The financial implications in 2008-09 on account of the implementation of the recommendations of the Sixth Central Pay Commission as modified by the Cabinet will be around Rs.15700 crore on the Central Budget and Rs.6400 crore on the Railway Budget.

On August 14, the Union Cabinet had approved an improved version of the Sixth Pay Commission award with effect from January 1, 2006.

Tags: arrears, CPC, Notification, pay commission, Pay Hike, Salary Hike, Sixth Commission, Sixth CPC, Sixth Pay, sixth pay commission, sixth pay notification

The Union Cabinet approved the Sixth Pay Commission recommendations on Thursday as an Independent Day bonanza for the civil servants and defense staff. The report states an average increase of 21 % in salaries of over 50 lakh government employees with effect from January 1, 2006.

Information and Broadcast Minister Priya Ranjan Dasmunshi said that arrears will be paid in two installments, 40 per cent this fiscal and 60 per cent in the next financial year.

He added that the new system includes four pay bands and the mid-level officers have been placed in the highest pay band. The formal announcement however will be made by Prime Minister on the 61st Independence Day eve from the ramparts of the Red Fort in Delhi.

Main points of the recommendations are as follows:

- It will be effective from January, 2006 as the term of the Fifth Pay Commission ended on December 31, 2005.

- The arrears will be paid in two installments, 40 per cent this fiscal and 60 per cent in the next financial year.

- The revised pay scale will be effective from next month.

- The entry level salary for government employees has been revised to Rs 7000 against the earlier pay of Rs 6,660, while the minimum salary per month at the lowest level will now be Rs 10000.

- Financial implication of Pay Commission on General Budget Rs 15,700 crore; Rs 6,400 crore on Railway Budget in 2008-09.

- It raises basic pay every year by 3% against the norm is a Rs 500-increase annually within grade scale.

- At least 3 promotions for both civilian and defense personal will be given. In case of civilians it will be at the 10th, 20th and 30th year and in case of defense forces by 16th, 18th and 24th year.

- A separate pay scale for DGPs and others high rank police personnel. IPS and Indian Forest Service pay packages have been appropriately modified.

- Military service pay for persons below the officer rank (POBR) would be Rs 2,000 per month. Hike in salaries of Brigadiers as they will now be in Pay Band 4 (Rs 39,200-67,000) from the suggested Pay Band 3 (Rs 15,600-39,100)

- The financial implications, with the implementation of the new structure, for the central government for the year 2008-09 will be Rs 15,700, while for the railways it will be to the tune of Rs 6400.

Tags: arrears, pay commission, Pay Hike, Salary Hike, Sixth Commission, Sixth Pay, sixth pay commission

Unhappy with the 6th Pay commission’s recommendation for the Armed Forces, the three Service Chiefs on Thursday met Defence Minister, A K Antony, to propose a 40 to 60 per cent increase over and above the hike suggested by the panel, saying they deserved a better deal.

The chiefs believe that the pay panel had not done justice to soldiers and middle rung officers. Defence personnel should be given higher salaries which will also help to attract the people to make a career in this field in the backdrop of shortage of officers.

Chairman of Chiefs of Staff Committee, Admiral Sureesh Mehta, want modifications in the Pay Commission proposals including military service pay (MSP) be fixed at 25 per cent of the basic pay for soldiers, personnel below officer rank (PBOR) and middle rung officers.

It will also bind the officers and men to forces since there are about 1.2 million personnel in the Armed Forces.

A meeting was held for more than 90 minutes and was attended by Army Chief General Deepak Kapoor, Air Chief Fali Homi Major and Defence Secretary Vijay Singh.

The Services, according to sources, were also up in arms against the Panel’s recommendation of single pay band for soldiers, PBOR and for officers up to the rank of Brigadiers.

Written request is also submitted to the Minister, the Services have asked the government to consider “three pay bands” each for soldiers and PBOR and for officers from rank of Lieutenant to Brigadiers.

Though there was no official comment on the submissions made, it is understood that the Service Chiefs suggested that the report be supplemented by a separate pay commission for the Armed Forces.

Tags: 6th Pay Commission, Indian Army, pay commission, Salary Hike

It is supposed that salaries of Indian employees will be given average increment of around 12.2 % this year in India. Such a high rate of increment has not been recorded in any other country. Real estate people will earn pretty good money. They can be benefited with 25% increment in their salaries. This would the highest increment among all the increments of other sector, though it is 0.2 % less than last year’s increment.

According to Havitt Association Survey, telecommunication will provide 17.6 % increment in salary and 17.5 % is estimated in energy sector. People working in Banking and Finance sector will get 16.9% increment and those in retail will be benefited by 16.2 % increment. 16.1 % rise in salary is supposed to be considered in Accounting, Consulting and Legal sectors.

Sandeep from Havitt Association said that people working in India are in search of better options in their respective jobs. Good offers and better chances attract them towards other organizations. Companies used to provide better offers to prevent their employees to change their jobs.

Surveys said that though this year is providing heavy increments in the salary but it will show a slow increase in coming years. With a gradual decrease in increments, it will stabilize on 9-10 % by 2010. This survey has considered 19 business and 540 organizations.

IT enabled services are among those three sectors whose estimated salary increment is lowest. Other sectors include Electronics, Electrical and Vehicle Manufacturing sectors. Electronic and electrical sector will show 12.8 increments, 13.5 % in Vehicle manufacturing and 14% in ITes. Technology and services outsource sector will increase the salary by 13-14%. These two sectors are already providing good salary packages.

Tags: Business, Careers, Salary Hike