Friday, October 19, 2007

Many rumours about sixth pay comission

A new pay scale

It is known that the sixth pay commission has decided to unify the increment dates and retirement dates for all the central govt. employees. Accordingly the retirement date will be December 31st and the increment falls on January 1st. The minimum basic pay will be 6500.

The pay commission chaired by Justice B N Shrikrishna has decided to reduce the number of pay scales from existing 39 to 16. The retirement ages will stay at existing 60 years.

Based on the speculation of the mid-term poll, the finance ministry has asked the commission to submit the pay structure alone. The detailed report will only be submitted later.

The recommendations will be to implement the scales with effect from January 2006. However the arrears due to the additional allowance will be calculated with effect from January 2007. The commission has recommended from 6pc DA from January 2007 and 14pc from January 2008.

As per the recommendations, the minimum basic scale for the central government employees will be 6500-150-9500(Group D). The existing scales which starts with 2650 and 2750 will be merged to a new scale of 7500-250-12500 for the group D staff. The scales starting with 4000 and 4500 will be merged and made into 10300-300-17500.

The employees in the A1 cities comprising of Delhi, Mumbai, ChennaI, Kolkotta and Bangalore will get an HRA of 30pc of the basic pay subject to a maximum of 12000. The HRA for AB1, B2 and other places will be 15pc(6000 max), 7.5pc(3000 max) and 5pc(2000 max) respectively. The CCA will be 4pc(1200max),3pc(900max),2pc(600max) and 1pc(600max) respectively. The conveyance allowance in the A1 and A cities will be 6pc of basic(2400max for gazetted and 1200 for non-gazetted). At other places this will be 3pc(1200/600 max).

The employees will have to contribute 10pc of the basic pay towards the PF.The employees in different groups will have to pay 400/200/100/50 towards the Insurance schemes.

While retiring the employees can encash 360 days (currently 300 days) of accumulated leaves. The pension commutation can be done for 60pc against the existing 40pc.

A new pay scale-
6500-150-9500
7000-200-11000(auxiliary staff- Gr D)
7500-250-12500
10000-300-17500(supporting staff - C)
12500-400-22500
15000-500-27000
(supervisory staff,B,non-gazetted)
17500-650-30500 (asst. officer)
20000-8000-36000 (junior scale)
25000-1000-40000 (senior scale under secretary)
30000-12000-48000 (deputy secretary)
42000-1400-55000 (director)
60000 (fixed) (joint secretary)
65000 (fixed) (additional secretary)
70000 (fixed) (special secretary)
75000 (fixed) (secretary)
80000 (fixed) (cabinet secretary)

As expected, the scales are just a lolipop to government employees. The actual resulting increase will be just between 25%-35% range of the present pay in hand of govt. employees. And the even this meagre increase will be further nullified with income tax liabilities arising out of increase. Thus, the SPC will prove just a "square one" exercise. Many thanks to our veteran FM for the lolipop. If any further scope remains for govt. employee to rejoice, that will be washed out by the maket hypes and further brutal inflationary trends at the behest of increase in pay scale of employees by businessmen (who loot the commonman and show 45% net profits and make our FM happy). Thus, in wholesome, the SPC would rather prove to be a negative effect for employees. Thus, stop enjoying. Start, worrying.

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