[AI] Highlights of the Sixth Pay Commission's Report.
dineshkaushal at hotmail.com
Tue Mar 25 01:44:54 EDT 2008
It would be really good as performance based increments will motivate people
to work better.
From: accessindia-bounces at accessindia.org.in
[mailto:accessindia-bounces at accessindia.org.in] On Behalf Of Amiyo Biswas
Sent: Monday, March 24, 2008 8:31 PM
To: accessindia at accessindia.org.in
Subject: [AI] Highlights of the Sixth Pay Commission's Report.
The said report has some special recommendations for disabled employees. I
think, list members serving under the Central Government will find these
features useful, if implemented, of course. I am pasting below the
highlights for you. The pdf file did not have the menu options. So I simply
had to use ctrl+a and ctrl+c to copy the text. The formatting will look very
bad, however, it is sufficient for Jaws users.
REPORT OF THE SIXTH CENTRAL PAY COMMISSION HIGHLIGHTS Report submitted to
the Government on March, 24, 2008. The 18 month tenure of the Commission was
Full text of the Report available at http://india.gov.in and
http://www.finmin.nic.in Salient features of the Report .
Implementation of the revised pay scales from January 1, 2006.
Recommendations relating to allowances to be implemented prospectively.
To remove stagnation, introduction of running pay bands for all posts in the
Government presently existing in scales below that of Rs.26,000 (fixed).
Four distinct running pay bands being recommended - one running band each
for all categories of employees in groups 'B' and 'C' with 2 running pay
bands for Group A posts.
The posts of Secretary to Government of India/equivalent and Cabinet
Secretary/equivalent to be kept in distinct pay scales.
A separate running pay band, designated as -1S scale, is not to be counted
for any purpose as no future recruitment is to be made in this grade and all
the present Group D employees not possessing the prescribed qualifications
are to be upgraded and placed in the Group 'C' running pay band PB-1 after
they are suitably retrained. Group D employees possessing the minimum
prescribed qualifications to be placed in PB-1 pay band straightaway.
Minimum salary at the entry level of PB-1 pay band to be Rs.6660 (Rs.4860 as
pay in the pay band plus Rs.1800 as grade pay). Maximum salary at the level
of Secretary/equivalent to be Rs.80000. The minimum: maximum ratio 1:12.
Every post, barring that of Secretary/equivalent and Cabinet
Secretary/equivalent to have a distinct grade pay attached to it. Grade pay
(being a fixed amount attached to each post in the hierarchy) to determine
the status of a post with a senior post being given higher grade pay.
The total number of grades reduced to 20 spread across four distinct running
pay bands; one Apex Scale and another grade for the post of Cabinet
Secretary/equivalent as against 35 standard pay scales existing earlier.
At the time of promotion from one post to another, the grade pay attached to
posts in different levels within the same running pay band to change.
Additionally, increase in form of one increment to be given at the time of
promotion. A person stagnating at the maximum of any pay band for more than
one year continuously to be placed in the immediate next higher pay band
without any change in the grade pay.
Annual increments to be paid in form of two and half percent of the total of
pay in the Pay Band and the corresponding grade pay. The date of annual
increments, in all cases, to be first of July. Employees completing six
months and above in the scale as on July 1 to be eligible.
Another form of variable increments for Group A Pay Band PB-3, where annual
increments in the band will vary depending upon the performance. Eighty
percent or more employees in the grade to be allowed normal increment at the
rate of 2.5% with the high performers (not exceeding 20 percent) during the
year being allowed increment at the higher rate of 3.5%. Government advised
to extend the scheme of variable increments in running pay bands PB 1 and PB
The following scheme of revised pay bands is being recommended:- (In Rs.)
table with 5 columns and 18 rows
Corresponding Pay Bands
*Employees in these scales to be eventually placed in pay band PB-1
table with 5 columns and 22 rows
Corresponding Pay Bands
8000-275-13500 (Group A Entry)
Cab. Sec./ Equ.
Defence Forces given running pay bands and grade pay on par with those
recommended for civilians.
In addition, Military Service Pay for all personnel of Defence Forces till
the rank of Brigadier/equivalent @ Rs. 6000 p.m.for officers, Rs.4200 p.m.
for Military Nursing Service officers and Rs. 1000 p.m. for Personnel Below
Officer Ranks. The Military Service Pay to count for all purposes excluding
Director General (Armed Force Medical Services) placed in the Apex grade of
In Defence Forces, only two trade groups to be retained for Personnel Below
Officer Ranks with the earlier trade groups Y and Z being merged. The
personnel in trade group X to have an additional X Group Pay of Rs. 1400 per
Certain posts in Senior Administrative Grade (SAG) and Higher Administrative
Grade (HAG) requiring technical or specialized expertise and not encadred in
any of the services to be opened up for being filled by suitable officers
within the Government as well as by outsiders on contract. Shift from career
based to post based selection in the higher echelons of Government in order
to get the best domain based expertise.
Creation of additional posts in Senior Administrative Grade/equivalent/
higher grades in future to be strictly on functional considerations with
such posts invariably being created outside the cadre to be filled by method
of open selection including contractual appointment from within or outside
Introduction of Performance Related Incentive Scheme (PRIS) in the
Government under which employees to be eligible for pecuniary remuneration
over and above the pay. PRIS to replace ad-hoc bonus scheme immediately and
eventually replace Productivity Linked Bonus. PRIS to be budget neutral.
System put in place for giving market driven compensation package to young
scientists and posts requiring special expertise and professional skills.
Parity established between Field and Secretariat Offices .
The Secretariat and Stenographers cadres to stand merged in future. All
future recruitment in Secretariat to be made as Executive Assistants with
minimum qualifications of Graduation and one year Diploma in Computers.
Executive Assistants to discharge the functions presently being carried out
by Assistants as well as the Private Secretaries.
Scale of Rs.26,000 (fixed) corresponding to the revised pay scale of
Base year of the Consumer Price Index (CPI) for computation of dearness
allowance to be revised as frequently as feasible. Formulation of a separate
CPI for Government employees by National Statistical Commission for
computation of dearness allowance suggested.
Existing rates of most of the allowances to be doubled both in case of
Defence Forces as well as civilian employees.
Existing rate of HRA to be retained for A-1 cities. A, B-1 & B-2 cities to
be given this allowance at the higher rate of 20%. C and Unclassified cities
to be given the allowance at the higher rate of 10%.
CCA to be subsumed in Transport Allowance and the rates of this allowance to
be increased by 4 times.
Travel entitlements to be paid on actuals.
Reimbursement of education allowance to be raised from existing Rs.50 to
Rs.1000 per child per month, subject to the maximum of two children. Hostel
subsidy to be raised from existing Rs.300 p.m. to Rs.3000 p.m.
Risk allowance to be replaced by risk insurance.
All fixed allowances made inflation proof with provisions of automatic
revision whenever dearness allowance payable on revised pay bands goes up by
Transport Allowance to be increased every year on the basis of the increase
in the dearness allowance.
Encashment of Earned Leave in case of Defence Forces personnel delinked from
the number of years of service. All Defence Forces personnel to be eligible
for leave encashment of upto 300 days at the time of retirement/discharge.
A new medical insurance scheme recommended for Government employees. The
scheme to be optional for existing Central Government employees and
New Government employees and new pensioners to be compulsorily covered by
Fitment formula recommended for serving employees to be extended in case of
existing pensioners/family pensioners.
Rates of Constant Attendant Allowance for disabled pensioners to be
increased by five times to Rs.3000 p.m.
Pension to be paid at 50% of the average emoluments/last pay drawn
(whichever is more beneficial) without linking it to 33 years of qualifying
service for grant of full pension.
A liberal severance package for employees leaving service between 15 to 20
years of service.
Higher rates of pension for retirees and family pensioners on attaining the
age of 80, 85, 90, 95 and 100 years.
Revision of the commutation table suggested for commutation of pension.
In case of Government employees dying in harness, family pension to be paid
at enhanced rates for a period of 10 years.
Framing of an appropriate insurance scheme suggested for meeting the OPD
needs of pensioners in non-CGHS areas.
A new mechanism for grant of advances under which an employee will take the
advance from an approved bank and the Government will give an interest
subsidy equal to two percentage points on the rate of interest being charged
by the bank to the employee. Existing limits of various advances increased
and provisions made for their automatic revision periodically.
Continuation of five day week. Government offices to remain closed only on
the three national holidays. All other gazetted holidays to be abolished and
compensated by increasing the number of restricted holidays from two to
eight days in a year.
Benefits like staggered working hours, special leave for child care,
enhanced maternity leave of 180 days, better accommodation facilities in the
form of working women's hostels, etc. specifically for women employees.
Government employees with disabilities recommended various benefits like
enhanced number of casual leave, special aids and appliances for
facilitating office work, higher interest subsidy for automobile loans,
liberal flexi hours, higher rate of transport allowance, better prosthetic
aids and proper grievance redressal machinery. Extra allowance for disabled
women employees to take care of young child till the time the child attains
the age of two years.
Lateral movement of all Defence Forces personnel (both Personnel Below
Officer Ranks & Short Service Commission Officers) at appropriate levels in
Central Police Organizations/Central Para Military Forces as well as to the
various posts of defence civilians in Ministry of Defence.
Steps leading to improvement in the existing delivery mechanisms by more
delegation, delayering and an emphasis on achieving quantifiable and
concrete end results. Emphasis to be on outcomes rather than processes.
Greater emphasis on field offices/organisation at the cutting edge of
Enhanced pay scales for Nurses, Teachers, Constabulary and Postmen with whom
the common citizen has most frequent interaction. Forest Guards also to get
higher pay scale.
Better deal for training academies.
Normal replacement pay band, grade pay and allowances for the existing
Members of regulatory bodies. A revised method of selection with a higher
pay package to those recruited through the revised process of selection in
All the recommendations to be treated as an organic whole as partial
implementation will bring in several anomalies and inconsistencies.
The recommendations contained in the Report to cost Rs.12,561 crore in the
year 2008 09.
Savings of Rs.4,586 crore likely to accrue on account of various measures
suggested in the Report. The net financial implications of the
recommendations contained in the Report estimated to be Rs.7,975 crore for
the year 2008-09. An additional, one-time burden of Rs.18,060 crore on
payment of arrears.
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