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The Armed Forces are furious over the government’s inaction to revise of the clauses of sixth pay commission report that are related to armed forces. The armed forces have refused to accept the sixth pay commission report after their demands were rejected by the government.

Due to the strong negative feelings of the armed forces against the 6th Pay commission’s recommendation for the Armed Forces, Prime Minister Mr. Manmoham Singh has set up a committee to look into the matter. This committee, which includes the defense minister Pranab Mukherjee, is set up to propose a 40 to 60 per cent increase over and above the hike suggested by the panel. The committee will look into “anomalies” in the notification of new pay scales for the armed forces by the 6th Pay Commission. It is expected to submit its report by the end of October.

The government has announced ad hoc payment of arrears to all ranks. These range from Rs 25,000 for jawans to Rs 50,000 for subedar-majors. Lieutenants can expect Rs 55,000 and Lt-Generals Rs 2.25 lakh.

The major reason for not accepting the Six pay commission’s report is that while the Lt-Colonel rank officers have been lowered by retaining them in Pay Band-3 (Rs 15,600-39,100), the civilians and paramilitary officers have been raised to level PB-4 (Rs 37,400-67,000).

Demand of Defense forces is to renew the parity of grade pay for lower and middle rung Service officers with their civilian counterparts, who are going to get more as per the new pay scales. Then, of course, the armed forces are also angry that all director-generals of police and their equivalents have been placed over Lt-Generals by the creation of a new “higher administrative grade-plus”.

Tags: 6th Pay, 6th Pay Commission, Armed Forces, Commission 6th Pay, pay commission, Pay Commission Report, Sixth Commission, sixth pay commission

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

The sixth pay commission has suggested a 40% hike in salaries of Central Governmant staff anf officers along with their counterparts in defence and paramilitary forces. The report is submitted to Finanace Minister P Chidambaram on Monday by Justice B N Srikrishna.

The current HRA in A1 cities is asked to retain the same according to reports but for HRA in non-A1 cities, the panel has recommended a hike of 10-20%.

50 per cent of salary is recommended as pension at the age of 80, 90, 95 and 100. Retirement age is increased to 62. Further, the Commission has recommended that the pay scales of Central government staff and officers, and their counterparts in the defence and paramilitary forces be revised from January 1, 2006.

Central government employees’ remuneration includes a basic salary, a 50% dearness pay merged with the basic and a 47% dearness allowance of the total.

Five working days are suggested with only three national holidays ending all other gazetted leaves. However, Maternity leave is increased to six months.

Pay hike to cost Rs 13,000 to 16,000 crores to government exchequer is recommended.

Excluding the arrears that would accrue to the 55 lakh employees, the annual impact of the new wage jump is estimated at Rs 12,561 crore.

The Commission, headed by Justice B N Srikrishna, was constituted in October 2006 and it had been given 18 months to submit its report. The panel’s recommendations are likely to benefit an estimated 4.5 million Central government employees.

Tags: Commission, Governement, P Chidambaram, pay commission, sixth pay commission