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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