In what could be a major bonanza for over four million Central government employees, the sixth pay commission on Monday recommended an average hike of 40 per cent in salaries and doubling most allowances that would cost the exchequer Rs 12,561 crore in 2008-09. On the heels of substantial benefits to tax payers in the budget, the revised pay would benefit employees to the tune of Rs 18,060 crore by way of arrears as the commission wanted implementation of the package from January 1, 2006.
Immediately after submitting the report to Finance Minister P Chidambaram, Commission Chairman Justice B N Srikrishna said, "I have recommended something which is good for the nation... The average hike will be 40 per cent."
The Cabinet Secretary would be the biggest beneficiary with a fixed revised salary of Rs 90,000 a month, followed by Rs 80,000 for Secretary. The minimum entry level monthly salary would be Rs 6,660 in the pay structure that seeks to guard against any stagnation.
The recommendation, to be considered by the cabinet, pays special attention to defence personnel whose pay has been brought on par with civilian staff, besides making them eligible for special allowance up to Rs 6,000 per month.
Women and disabled
Women and disabled employees have been given a special treatment in the report through a recommendation for improved leave and working conditions.
The commission also recommended increase in benefits for women employees including maternity leave of 180 days, besides flexi-timings in certain cases.
Performance pay
The commission paves the way for awarding performers through a higher 3.5 per cent rate of increment against the normal 2.5 per cent.
At the same time, a performance related incentive scheme is sought to be introduced to replace the ad-hoc bonus scheme immediately, the report said, adding that the scheme was budget neutral.
Pensioners
The commission also sought to give major benefits to the pensioner, particularly as they grow older by recommending higher rates on attaining the age of 80, 85, 90, 95 and 100. It sought pension to be paid at 50 per cent of the higher of the average emoluments or last drawn pay without linking it to 33 years of service.
Contrary to reports, the panel seeks to retain the superannuation age at 60 years, while recommending concession on this count for scientists and medical specialists. The report also recommends bringing in experts on contract employment for posts requiring higher skills.
Justice Srikrishna said, "the biggest highlight of the report is to revise the salary structure in such a way to make the government machinery more efficient," and pointed to the recommendations relating to performance related incentive scheme and variable increments to promote high performance.
"Existing rates of most of the allowances will be doubled both in case of defence forces as well as civilian employees," the report said and added that education allowance reimbursement would be Rs 1,000 per child per month for the existing Rs 50 and recommended 10-fold increase in hostel subsidy to Rs 3,000 a month.
Costs
Justice Srikrishna clarified that though the annual cost of the recommendations was Rs 12,561 crore, savings of Rs 4,586 crore could accrue through implementation of various measures suggested by the panel, thus bringing down the net financial implication to Rs 7,975 crore.
Later, Commission Chairman Srikrishna told reporters that the average hike in salary would be 40 per cent, though for high skilled professionals such as of scientists, the commission has recommended market-linked salary packages with a provision for contractual employment.
"We have also recommended at variable annual increment of 2.5 to 3.5 per cent of basic salary for government employees depending upon their performance," he said, adding that for the armed forces, it has recommended a military allowance of Rs 1,000 to Rs 6,000 per month.
Hike in salaries for SC employees
"The same scheme of running pay bands and grade pay as being recommended for Central government employees is recommended for the Supreme Court employees," the commission, said.
All the posts in the Supreme Court that are presently in the scale of Rs 6,500-10,500 have been upgraded and placed in the scale of Rs 8,700-34,800 along with grade pay of Rs 4600, the report, submitted today to Finance Minister P Chidambaram, said.
The commission has recommended merger of the posts of Additional Registrar and Joint Registrar in the scale of Rs 18,400-22,400, which would be revised in the pay band of Rs 39,200-67,000 along with grade pay of Rs 9,000.
The sixth-pay commission also accepted the demand for grant of the scale of Rs 8,000-13,500 on completion of four years of service to all posts like Senior Judicial Assistants, Senior Personal Assistants, Readers, Senior Judicial Translators and court officers, which are presently in the pay scale of Rs 6,500-10,500.
The commission has recommended that these posts be extended the scale of Rs 8,000-13,500 corresponding to the revised pay of Rs 8,700-34,800 along with the grade pay of Rs 5,400.
The commission also recommended that the merger of posts like PPS to the Chief Justice, Chief Librarian and Assistant Editor in the pay scale of Rs 12,000-16,500 to be revised in the proposed scale of Rs 15,600-39,100 along with grade pay of Rs 6,600.
Special pay for armed forces
The pay commission recommended an up to two-fold increase in the salaries of defence personnel that would include a military service pay of up to Rs 6,000 a month and grade pay, apart from suggesting their direct entry into Central para-military forces.
"We have observed that government is spending on the training of these jawans (defence personnel), which are left on the street in their prime age at the age of 33-34. The lateral entry will provide them longer career and lesser burden on government," Srikrishna told reporters.
However, the panel made it clear that for the military service pay (MSP), the government will not have to pay any arrears.
In the officers category, it has recommended a pay scale of Rs 15,600-Rs 39,100 for lieutenant, along with a grade pay of Rs 5,400 and MSP of Rs 6,000 a month. Accordingly, the total revised monthly pay of Lieutenant, Sub-Lieutenant or Flying Officer will be Rs 25,760 to Rs 28,890.
The Major-General/Rear Admiral/Air Vice Marshal have been put in the pay scale of Rs 39,200-rs 67,000 besides a grade pay of Rs 9,000, but without any MSP. They will be getting a monthly salary of Rs 52,280-rs 54,480 as per the revised pay scales.
Further, it has recommended a direct entry in the Central para-military forces that will provide them a service for longer period and save the government of immediate pension burden.
"We have observed that government is spending on the training of these jawans, who are left on the street in their prime age of 33-34... The lateral entry will provide them a longer career," he said.
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