- All fixed allowances made inflation proof with provisions of automatic revision whenever
dearness allowance payable on revised pay bands goes up by 50%. 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 pensioners. New
Government employees and new pensioners to be compulsorily covered by the scheme.
- 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 delivery.
- 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 selected organisations.
- 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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