The armed forces on Monday initiated the move to issue draft notification for their new pay-packages (Sixth Pay Commission) following the formation of a high-level three-member ministerial committee to take up the issue of disparities in salaries of armed forces personnel vis-a-vis the paramilitary forces and civilian bureaucracy.
The government had announced the new packages for the armed forces in August after making certain modifications in the recommendations of the Sixth Central Pay Commission report.
The armed forces had earlier refused to implement their new pay-packages in protest against these pay-disparities.
Indian Navy Chief and Chairman of the Chief of Staffs Committee Admiral Sureesh Mehta had earlier written to all naval personnel explaining the reasons for delay in the issue of the draft notification. But the Indian Army, Navy and Air Force have now initiated the move to issue the draft notification.
While the process would take time, the government had moved swiftly on Saturday to announce ad hoc payment of arrears for the current year to all ranks of the services at the earliest. This is in view of the forthcoming festive season.
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Tuesday, September 30, 2008
Sunday, September 28, 2008
Forces Pay Hike vs Sixth Pay Commission.
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After the Armed Forces expressed huge disappointment over the Sixth Pay Commission report and rejected it outright, the PMO intervened and formed a 3-member committee to look into their grievances.
After consulting with the PM, who is away on a foreign visit, External Affairs Minister Pranab Mukherjee formed a committee with two other members Finance Minister P Chidambaram and Defence Minister A K Antony. Mr. Pranab Mukherjee will head the committee.
The committee will look into objections raised by armed forces over the Sixth Pay Commission recommendations. Defence Minister AK Antony expressed hope that armed forces will get their pay in new scales by Diwali.
He also assured that all anomalies in the pay will be duly addressed. The Defence Services have decided to accept the revised pay scales and submit the salary bills to the ministry until the committee submits its report the cabinet.President Dr. Pratibha Patil took note of the concerns of the armed forces and gave her sanction to the order for ad-hoc payment of arrears, which will help the defence personnel to manage their Diwali expenses.
Armed forces chiefs had made it public that they are not going to implement the 6th Pay Commission recommendations in its present form. They had clearly said that the discrimination in payment of officials in armed forces viz a viz civilian officials was unacceptable.There was also talked of armed forces personnel going to celebrate Divali as black day.
But luckily it seems that the direct intervention of Prime Minister Dr Manmohan Singh from New York broke the ice and defence minister AK Antony gave his consent to form a panel to look into the anomalies in pay structure of armed forces.
There was also pressure from Defence Minister AK Antony on armed forces chief to implement the 6th pay commission from this month. He had made it amply clear that if the forces chief do not implement it, defence ministry will issue order in this regard.Luckily things seem to have been sorted out for now with armed forces chiefs deciding to toe the government line for now as the panel headed by External Affairs Minister Pranab Mukherjee has been formed to look into the anomalies.I
n the meantime Army Chief General Deepak Kapoor on Sunday clarified that there were no differences between Government of India and armed forces over the anomalies in the Sixth Pay Commission report.
Army Chief said, “I want to clarify that talks of differences between armed forces and Indian Government is not correct and has been played up incorrectly”.“The fact that the Defence Ministry, Defence Minister and the Prime Minister are with us shows that he (Antony) is also part of the government, as we are. So there are no differences.
I think it has been played up a little incorrectly," General Deepak Kapoor said.He went on to add, “we have made our recommendations and government has set up a committee and let see how the deliberations go."After Prime Minister’s direct intervention on the issue the Centre hurriedly constituted the committee, which also includes Finance Minister P Chidambaram and Defence Minister A K Antony. The committee is expected to give interim relief within a week.
The Centre also said that all pending issues of the armed forces on pay hike would be resolved by the end of October.
Giving defence personnel reasons to cheer before Diwali, the government had yesterday ordered release of their ad-hoc arrears for the current year this week, even as the government said the armed forces would submit fresh salary vouchers tomorrow, paving the way for the 1.5 million personnel to take home the revised pay on October 1.
But the "discriminatory" pay commission report would come under fresh scrutiny with Prime Minister Manmohan Singh, who is abroad, setting up a high-level ministerial committee yesterday to address their grievances. In the meantime after the setting up of the committee, the three service chiefs have decided to accept the revised salaries as per the sixth pay commission report.
They would submit the revised salary bills to the Union defence minister on Monday.Armed forces have claimed several anomalies in the revised pay structure. One of them being in the Lt Colonel rank and below. “A Lt Colonel is now paid Rs 10,000 less than his civilian counterparts. Over 19,000 officers are in this rank. Colonels and equivalent will get at least Rs 10,000 less than their counterparts in civil services and other Central organisations,” a senior army officer said.
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After the Armed Forces expressed huge disappointment over the Sixth Pay Commission report and rejected it outright, the PMO intervened and formed a 3-member committee to look into their grievances.
After consulting with the PM, who is away on a foreign visit, External Affairs Minister Pranab Mukherjee formed a committee with two other members Finance Minister P Chidambaram and Defence Minister A K Antony. Mr. Pranab Mukherjee will head the committee.
The committee will look into objections raised by armed forces over the Sixth Pay Commission recommendations. Defence Minister AK Antony expressed hope that armed forces will get their pay in new scales by Diwali.
He also assured that all anomalies in the pay will be duly addressed. The Defence Services have decided to accept the revised pay scales and submit the salary bills to the ministry until the committee submits its report the cabinet.President Dr. Pratibha Patil took note of the concerns of the armed forces and gave her sanction to the order for ad-hoc payment of arrears, which will help the defence personnel to manage their Diwali expenses.
Armed forces chiefs had made it public that they are not going to implement the 6th Pay Commission recommendations in its present form. They had clearly said that the discrimination in payment of officials in armed forces viz a viz civilian officials was unacceptable.There was also talked of armed forces personnel going to celebrate Divali as black day.
But luckily it seems that the direct intervention of Prime Minister Dr Manmohan Singh from New York broke the ice and defence minister AK Antony gave his consent to form a panel to look into the anomalies in pay structure of armed forces.
There was also pressure from Defence Minister AK Antony on armed forces chief to implement the 6th pay commission from this month. He had made it amply clear that if the forces chief do not implement it, defence ministry will issue order in this regard.Luckily things seem to have been sorted out for now with armed forces chiefs deciding to toe the government line for now as the panel headed by External Affairs Minister Pranab Mukherjee has been formed to look into the anomalies.I
n the meantime Army Chief General Deepak Kapoor on Sunday clarified that there were no differences between Government of India and armed forces over the anomalies in the Sixth Pay Commission report.
Army Chief said, “I want to clarify that talks of differences between armed forces and Indian Government is not correct and has been played up incorrectly”.“The fact that the Defence Ministry, Defence Minister and the Prime Minister are with us shows that he (Antony) is also part of the government, as we are. So there are no differences.
I think it has been played up a little incorrectly," General Deepak Kapoor said.He went on to add, “we have made our recommendations and government has set up a committee and let see how the deliberations go."After Prime Minister’s direct intervention on the issue the Centre hurriedly constituted the committee, which also includes Finance Minister P Chidambaram and Defence Minister A K Antony. The committee is expected to give interim relief within a week.
The Centre also said that all pending issues of the armed forces on pay hike would be resolved by the end of October.
Giving defence personnel reasons to cheer before Diwali, the government had yesterday ordered release of their ad-hoc arrears for the current year this week, even as the government said the armed forces would submit fresh salary vouchers tomorrow, paving the way for the 1.5 million personnel to take home the revised pay on October 1.
But the "discriminatory" pay commission report would come under fresh scrutiny with Prime Minister Manmohan Singh, who is abroad, setting up a high-level ministerial committee yesterday to address their grievances. In the meantime after the setting up of the committee, the three service chiefs have decided to accept the revised salaries as per the sixth pay commission report.
They would submit the revised salary bills to the Union defence minister on Monday.Armed forces have claimed several anomalies in the revised pay structure. One of them being in the Lt Colonel rank and below. “A Lt Colonel is now paid Rs 10,000 less than his civilian counterparts. Over 19,000 officers are in this rank. Colonels and equivalent will get at least Rs 10,000 less than their counterparts in civil services and other Central organisations,” a senior army officer said.
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Saturday, September 27, 2008
Military pay hike: Govt sets up panel.
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The government has finally responded to Army's continued displeasure over the pay hike.It has decided to form 3-member committee headed by External Affairs Minister Pranab Mukherjee.
The committee will also have Defence Minister AK Anthony and Finance Minister P Chidambaram as its members.The proposed committee will look into the grievances of the Armed Forces related to the remuneration being offered to them in the Sixth Pay Commission.
The decision was taken after PM was consulted in the US on the issue.All pending issues of Army on pay hikes will be addressed and resolved latest by October end.
All service headquarters - Army, Navy and Air Force - will issue notification on Monday to hand out the revised payscale according to the Sixth Pay Commission.
Source NDTV.COM
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The government has finally responded to Army's continued displeasure over the pay hike.It has decided to form 3-member committee headed by External Affairs Minister Pranab Mukherjee.
The committee will also have Defence Minister AK Anthony and Finance Minister P Chidambaram as its members.The proposed committee will look into the grievances of the Armed Forces related to the remuneration being offered to them in the Sixth Pay Commission.
The decision was taken after PM was consulted in the US on the issue.All pending issues of Army on pay hikes will be addressed and resolved latest by October end.
All service headquarters - Army, Navy and Air Force - will issue notification on Monday to hand out the revised payscale according to the Sixth Pay Commission.
Source NDTV.COM
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Friday, September 26, 2008
‘Black Diwali’ for armed forces.
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It will be a ‘Black Diwali’ for the armed forces as they have refused to accept the new pay scales till the anomalies are corrected. Other Central services, including the Indian Police Service (IPS), are awaiting word from the government on their plea for rectification of defects in the Sixth Pay Commission’s pay scales.
While the armed forces have refused to accept the revised salaries that were to be given this month, IPS officers too will continue to draw the old pay scales. “Set right anomalies”
The three service chiefs have refused to accept the revised salaries till the anomalies, especially for the ranks of Lieutenant Colonels and Lieutenant Generals are corrected.
The intense feeling of having been let down at the Lt. Col level in all the three services prompted the service chiefs not to implement the Pay Commission’s recommendations across all ranks.
The service chiefs are wary of getting their grievances addressed by bureaucrats and want a decision at the political level.
The distrust with civilian officers has its genesis with the formation of the Pay Commission when the services pointed out that retired and serving personnel formed the largest component of Central government employees. Therefore, they pleaded for representation in the Indian Administrative Service (IAS)-dominated Sixth Pay Commission by pointing out that civilians would not be able to grasp the circumstances in which armed forces personnel operated. However, their demand was rejected.
Since then, they again felt short-changed by the bureaucracy when a review committee was set up to look into their complaints over the pay scales recommended by the Commission.
This review panel, again comprising IAS officers, failed to measure up to their expectations.
Since then, Defence Minister A.K. Antony, Chairman of the Chiefs of Staff Committee Admiral Sureesh Mehta and the other two service chiefs have separately approached the Prime Minister for redressal.
Source The Hindu
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It will be a ‘Black Diwali’ for the armed forces as they have refused to accept the new pay scales till the anomalies are corrected. Other Central services, including the Indian Police Service (IPS), are awaiting word from the government on their plea for rectification of defects in the Sixth Pay Commission’s pay scales.
While the armed forces have refused to accept the revised salaries that were to be given this month, IPS officers too will continue to draw the old pay scales. “Set right anomalies”
The three service chiefs have refused to accept the revised salaries till the anomalies, especially for the ranks of Lieutenant Colonels and Lieutenant Generals are corrected.
The intense feeling of having been let down at the Lt. Col level in all the three services prompted the service chiefs not to implement the Pay Commission’s recommendations across all ranks.
The service chiefs are wary of getting their grievances addressed by bureaucrats and want a decision at the political level.
The distrust with civilian officers has its genesis with the formation of the Pay Commission when the services pointed out that retired and serving personnel formed the largest component of Central government employees. Therefore, they pleaded for representation in the Indian Administrative Service (IAS)-dominated Sixth Pay Commission by pointing out that civilians would not be able to grasp the circumstances in which armed forces personnel operated. However, their demand was rejected.
Since then, they again felt short-changed by the bureaucracy when a review committee was set up to look into their complaints over the pay scales recommended by the Commission.
This review panel, again comprising IAS officers, failed to measure up to their expectations.
Since then, Defence Minister A.K. Antony, Chairman of the Chiefs of Staff Committee Admiral Sureesh Mehta and the other two service chiefs have separately approached the Prime Minister for redressal.
Source The Hindu
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Defence Forces reject revised salaries under Pay Panel.
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The Defence Forces today did not submit their revised salary bills to the ministry's accounts office, effectively deferring implementation of the 6th Pay Commission report "with the existing anomalies" that affect personnel across all ranks.
"The Armed Forces have not raised their pay vouchers in the revised scales in accordance with the 6th Central Pay Commission (CPC) notification and have submitted bills in the old pay scales," a Defence Ministry source told PTI here.
Though the government had yesterday in principle accepted the Services' demand for restoring 70 per cent "extant pensionary weightage" to jawans on the basis of their last drawn pay, the Armed Forces are cut up with the Finance Ministry over the rejection of their three other demands concerning officers.
The CPC had recommended that the jawans be given 50 per cent "pensionary weightage" and provided an option of lateral entry into paramilitary and central police forces.The Armed Forces wanted the lateral entry scheme to be first approved and implemented by the government before the CPC recommendation on the 50 per cent "pensionary weightage" came into effect.
"We have accepted salaries this month under the old pay scales, as we expect the government to take a quick decision on all our demands soon after Prime Minister Manmohan Singh returns from his US visit on October 1," an Armed Forces officer said.
Source PTI
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The Defence Forces today did not submit their revised salary bills to the ministry's accounts office, effectively deferring implementation of the 6th Pay Commission report "with the existing anomalies" that affect personnel across all ranks.
"The Armed Forces have not raised their pay vouchers in the revised scales in accordance with the 6th Central Pay Commission (CPC) notification and have submitted bills in the old pay scales," a Defence Ministry source told PTI here.
Though the government had yesterday in principle accepted the Services' demand for restoring 70 per cent "extant pensionary weightage" to jawans on the basis of their last drawn pay, the Armed Forces are cut up with the Finance Ministry over the rejection of their three other demands concerning officers.
The CPC had recommended that the jawans be given 50 per cent "pensionary weightage" and provided an option of lateral entry into paramilitary and central police forces.The Armed Forces wanted the lateral entry scheme to be first approved and implemented by the government before the CPC recommendation on the 50 per cent "pensionary weightage" came into effect.
"We have accepted salaries this month under the old pay scales, as we expect the government to take a quick decision on all our demands soon after Prime Minister Manmohan Singh returns from his US visit on October 1," an Armed Forces officer said.
Source PTI
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Thursday, September 25, 2008
Top babus will now fly first class.
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First class travel on international airlines has become a reality for top officials with the government issuing orders to substantially improve all travel rules in line with the Sixth Pay Commission's recommendations.
The high-end journeys can be undertaken by cabinet secretary and secretaries while officials a notch below can enjoy business class and all others can travel economy class.
For domestic official tours, all officers with a grade pay of Rs 10,000 or above can travel in business class or by AC first in trains. The entitlements of other officials have been revised from September 1 with the minimum being AC-III for those drawing Rs 4,200 or less as grade pay.
The government has taken a strong view on personal use of "mileage points" of frequent-flier officials and ordered that these points would accrue to the department concerned for concessional travel by others on official tours. "Any usage of these mileage points for purposes of private travel by an officer will attract departmental action.
This is to ensure that the benefits out of official travel, which is funded by the government, should accrue to the government," the order says. To ensure that tours are taken judiciously, the government has clarified that no additional funds would be provided on account of revision in entitlements.
The departments are expected to restrict official tours only to "absolutely essential" requirement. Journeys undertaken in buses and taxis, including air-conditioned ones, will be reimbursed on the basis of actual expenses for officers in grade pay up to Rs 4,200. Official tours in own cars or taxis can be reimbursed at the rate of Rs 16 per km. It would be Rs 8 per km for auto-rickshaws and scooters.
The highest daily expense for hotel stay would be Rs 5,000 now with additional food bills up to Rs 500. The limit goes down as per grade pay to a minimum daily entitlement of Rs 300. A composite transfer grant equal to one month's basic pay can be taken for change of stations beyond 20 km.
The weight limit for shifting household goods has been revised upwards. If an officer's spouse is working, he or she can claim 50% of the transfer grant if moving between same stations within six months but after 60 days of the spouse's transfer.
Source The Times Of India.
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First class travel on international airlines has become a reality for top officials with the government issuing orders to substantially improve all travel rules in line with the Sixth Pay Commission's recommendations.
The high-end journeys can be undertaken by cabinet secretary and secretaries while officials a notch below can enjoy business class and all others can travel economy class.
For domestic official tours, all officers with a grade pay of Rs 10,000 or above can travel in business class or by AC first in trains. The entitlements of other officials have been revised from September 1 with the minimum being AC-III for those drawing Rs 4,200 or less as grade pay.
The government has taken a strong view on personal use of "mileage points" of frequent-flier officials and ordered that these points would accrue to the department concerned for concessional travel by others on official tours. "Any usage of these mileage points for purposes of private travel by an officer will attract departmental action.
This is to ensure that the benefits out of official travel, which is funded by the government, should accrue to the government," the order says. To ensure that tours are taken judiciously, the government has clarified that no additional funds would be provided on account of revision in entitlements.
The departments are expected to restrict official tours only to "absolutely essential" requirement. Journeys undertaken in buses and taxis, including air-conditioned ones, will be reimbursed on the basis of actual expenses for officers in grade pay up to Rs 4,200. Official tours in own cars or taxis can be reimbursed at the rate of Rs 16 per km. It would be Rs 8 per km for auto-rickshaws and scooters.
The highest daily expense for hotel stay would be Rs 5,000 now with additional food bills up to Rs 500. The limit goes down as per grade pay to a minimum daily entitlement of Rs 300. A composite transfer grant equal to one month's basic pay can be taken for change of stations beyond 20 km.
The weight limit for shifting household goods has been revised upwards. If an officer's spouse is working, he or she can claim 50% of the transfer grant if moving between same stations within six months but after 60 days of the spouse's transfer.
Source The Times Of India.
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Government gives 'in principle' nod to pay demand for jawans.
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The government has agreed to restore 70 per cent "pensionary weightage" to jawans, even as Defence chiefs on Thursday intensified efforts to get "anomalies" in the 6th Pay Commission notification removed.
"The government has given in principle approval to reverting to the 70 per cent pensionary weightage, as demanded by the Services, overruling the 50 per cent recommended by the Central Pay Commission (CPC), providing much-needed relief just before this Diwali," top Defence Ministry sources told reporters here. Espousing their cause, the Services chiefs today apprised Cabinet Secretary K M Chandrasekhar and officials in the Prime Minister's Office (PMO) on the issues.
Earlier, jawans used to get 70 per cent of their last drawn pay as pension calculated on the basis of their 10-month average salary before retirement. Under the CPC notification, the jawans, who form the backbone of the Armed Forces but retire at a relatively young age, are to be provided with the option of lateral entry in to the Central police forces and paramilitary and in return, they would get reduced "pensionary weightage" of 50 per cent.
In order to resolve this issue, Defence Minister A K Antony had written a strong letter to both Prime Minister Manmohan Singh and Finance Minister P Chidambaram, particularly batting for the jawan's pensionary benefits, reduced by the CPC.
Source The Economic Times
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The government has agreed to restore 70 per cent "pensionary weightage" to jawans, even as Defence chiefs on Thursday intensified efforts to get "anomalies" in the 6th Pay Commission notification removed.
"The government has given in principle approval to reverting to the 70 per cent pensionary weightage, as demanded by the Services, overruling the 50 per cent recommended by the Central Pay Commission (CPC), providing much-needed relief just before this Diwali," top Defence Ministry sources told reporters here. Espousing their cause, the Services chiefs today apprised Cabinet Secretary K M Chandrasekhar and officials in the Prime Minister's Office (PMO) on the issues.
Earlier, jawans used to get 70 per cent of their last drawn pay as pension calculated on the basis of their 10-month average salary before retirement. Under the CPC notification, the jawans, who form the backbone of the Armed Forces but retire at a relatively young age, are to be provided with the option of lateral entry in to the Central police forces and paramilitary and in return, they would get reduced "pensionary weightage" of 50 per cent.
In order to resolve this issue, Defence Minister A K Antony had written a strong letter to both Prime Minister Manmohan Singh and Finance Minister P Chidambaram, particularly batting for the jawan's pensionary benefits, reduced by the CPC.
Source The Economic Times
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Tuesday, September 23, 2008
Revision of Conveyance Allowance.
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The revise the rates of Fixed ConveyanceAllowance admissible under SR-25 as indicated below:
...................................................... Fixed Conveyance Allowance
.................................For journeys by own car....journey by other modes
Average monthly travel
on official duty.......................... (in Rupees) .................. (in Rupees)
--------------------------------------------------------------------------------------------
201-300 Kms ..............................1120....................................... 370
301-450 Kms ............................. 1680........................................ 480
451-600 Kms ..............................2070........................................640
601-800 kms ..............................2430 .......................................750
Above 800Kms.........................3000......................................... 850
2. - These rates shall automatically increase by 25% whenever the DearnessAllowance payable on the revised pay structure goes up by 50%.
3. These orders will be effective from 1" September 2008.
The revise the rates of Fixed ConveyanceAllowance admissible under SR-25 as indicated below:
...................................................... Fixed Conveyance Allowance
.................................For journeys by own car....journey by other modes
Average monthly travel
on official duty.......................... (in Rupees) .................. (in Rupees)
--------------------------------------------------------------------------------------------
201-300 Kms ..............................1120....................................... 370
301-450 Kms ............................. 1680........................................ 480
451-600 Kms ..............................2070........................................640
601-800 kms ..............................2430 .......................................750
Above 800Kms.........................3000......................................... 850
2. - These rates shall automatically increase by 25% whenever the DearnessAllowance payable on the revised pay structure goes up by 50%.
3. These orders will be effective from 1" September 2008.
Recommendations relating to LTC.
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Consequent upon the acceptance of the recommendations of Sixth Central PayCommission, it has been decided to make necessary additions/changes in the CCS(LTC)Rules, 1988 as indicated below:-
The parents and lor step parents (stepmother and stepfather)who are wholly dependenton the Government employees shall be included in the definition of family for the purpose ofLTC, irrespective of whether they are residing with the Government employee or not.
The definition of dependency will be linked to the minimum family pensionprescribed in Central Government and dearness relief thereon. The extant conditions inrespect of other relations included in the family including married/divorced/abandoned/separated/widowed daughters shall continue without anychange.
Fresh recruits to Central Government may be are allowed to travel to their home townalong with their families on three occasions in a block of four years and to any place in Indiaon the fourth occasion. This facility shall be available to the Government officers only forthe first two blocks of four years applicable after joining the Government for the first time.The blocks of 4 years shall apply with reference to the initial date of joining the Governmenteven though the employee changes the job within Government subsequently. The existingblocks will remain the same but the entitlements of the new recruit will be different in thefirst eight years of service. All other provisions concerning frequency of travel under LTCare retained.
Travel entitlements, for the purpose of official tour/transfer or LTC, will be the samebut no daily allowance shall be admissible for travel on LTC. Further, the facility shall beadmissible only in respect of journeys performed in vehicles operated by the Government orany Corporation in the public sector run by the Central or State Government or a local body.Air Journey by Private Airlines will however, continue to be admissible as per Ministry ofFinance O.M. No. 19024/1/E-IV/2005 dated the 24th March, 2006 and in terms of the ordersof DOPT in this regard ..
Government officers are allowed to encash ten days earned leave at the time ofavailing of LTC to the extent of sixty days during the entire career. The leave encashed atthe time of LTC will not be deducted from the maximum amount of earned leave encashableat the time of retirement. It is further clarified that where both husband and wife areGovernment servants, the present entitlement for availing LTC shall remain unchanged, andencashment of leave equal to 10 days at the time of availing of LTC will continue to beavailable to both, subject to a maximum of sixty days each during the career.
3. The LTC claim pertaining to the period prior to 318t August, 2008 shall be regulatedas per rules applicable on the date of journey and LTC claims already settled will not be re-opened.
Consequent upon the acceptance of the recommendations of Sixth Central PayCommission, it has been decided to make necessary additions/changes in the CCS(LTC)Rules, 1988 as indicated below:-
The parents and lor step parents (stepmother and stepfather)who are wholly dependenton the Government employees shall be included in the definition of family for the purpose ofLTC, irrespective of whether they are residing with the Government employee or not.
The definition of dependency will be linked to the minimum family pensionprescribed in Central Government and dearness relief thereon. The extant conditions inrespect of other relations included in the family including married/divorced/abandoned/separated/widowed daughters shall continue without anychange.
Fresh recruits to Central Government may be are allowed to travel to their home townalong with their families on three occasions in a block of four years and to any place in Indiaon the fourth occasion. This facility shall be available to the Government officers only forthe first two blocks of four years applicable after joining the Government for the first time.The blocks of 4 years shall apply with reference to the initial date of joining the Governmenteven though the employee changes the job within Government subsequently. The existingblocks will remain the same but the entitlements of the new recruit will be different in thefirst eight years of service. All other provisions concerning frequency of travel under LTCare retained.
Travel entitlements, for the purpose of official tour/transfer or LTC, will be the samebut no daily allowance shall be admissible for travel on LTC. Further, the facility shall beadmissible only in respect of journeys performed in vehicles operated by the Government orany Corporation in the public sector run by the Central or State Government or a local body.Air Journey by Private Airlines will however, continue to be admissible as per Ministry ofFinance O.M. No. 19024/1/E-IV/2005 dated the 24th March, 2006 and in terms of the ordersof DOPT in this regard ..
Government officers are allowed to encash ten days earned leave at the time ofavailing of LTC to the extent of sixty days during the entire career. The leave encashed atthe time of LTC will not be deducted from the maximum amount of earned leave encashableat the time of retirement. It is further clarified that where both husband and wife areGovernment servants, the present entitlement for availing LTC shall remain unchanged, andencashment of leave equal to 10 days at the time of availing of LTC will continue to beavailable to both, subject to a maximum of sixty days each during the career.
3. The LTC claim pertaining to the period prior to 318t August, 2008 shall be regulatedas per rules applicable on the date of journey and LTC claims already settled will not be re-opened.
ASSAM : Pay hike to State govt staff likely before polls.
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Assam Government is likely to announce a new pay package for its employees ahead of the Lok Sabha polls. According to sources, the State Pay Commission that was to submit its report by December 31 has been asked by the State Government to expedite the submission of the report.
“The idea is to ensure that we announce the revised pay package ahead of the polls,” said a top State Government official.Meanwhile, Chief Minister, Tarun Gogoi parried questions about the revising the pay package of his employees.
He said Assam Government was among the first States to announce a pay hike. “We have already announced merger of 50 per cent D.A with Basic, besides providing 10 per cent interim relief,” he added.Financially because of our economic growth, we are in a much better position,” he said, adding that more funds were now available for planning and development.
Meanwhile, Assam Government is unlikely to invite the Tatas to shift its Nano project because of the land crunch. Replying to question, Gogoi said that he has only 2000 acres of available land. “We want to use this land for the knowledge city,” he said.“We have requested Tatas to invest in the education sector in Assam because through education, we can create jobs,’ he said.
Replying to questions, he clarified that unless the State had lands, he could offer it to the Tatas. “How can I acquire the land,” he asked.
Source: The Assam Tribune
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Assam Government is likely to announce a new pay package for its employees ahead of the Lok Sabha polls. According to sources, the State Pay Commission that was to submit its report by December 31 has been asked by the State Government to expedite the submission of the report.
“The idea is to ensure that we announce the revised pay package ahead of the polls,” said a top State Government official.Meanwhile, Chief Minister, Tarun Gogoi parried questions about the revising the pay package of his employees.
He said Assam Government was among the first States to announce a pay hike. “We have already announced merger of 50 per cent D.A with Basic, besides providing 10 per cent interim relief,” he added.Financially because of our economic growth, we are in a much better position,” he said, adding that more funds were now available for planning and development.
Meanwhile, Assam Government is unlikely to invite the Tatas to shift its Nano project because of the land crunch. Replying to question, Gogoi said that he has only 2000 acres of available land. “We want to use this land for the knowledge city,” he said.“We have requested Tatas to invest in the education sector in Assam because through education, we can create jobs,’ he said.
Replying to questions, he clarified that unless the State had lands, he could offer it to the Tatas. “How can I acquire the land,” he asked.
Source: The Assam Tribune
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Income Tax on Pay Arrears.
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Along with the bonanza of receiving the pay arrears following the recommendations of the Sixth Pay Commission, there is also a worry among the employees who are going to receive this pay money as pay arrears. The worry is How much Income tax is payable on the pay arrears?.
There have been some news items on television as well as in the newspapers that most of the pay arrears will go towards payment of income tax once the employees receive the arrears.
However, the government recently, has clarified its stand on the taxation of the pay arrears for the current financial year.Income tax on Pay arrears Sixth CommissionGovernment
representative said that they would tax only 40 per cent of salary arrears to be paid to central government employees in the current fiscal on implementation of Sixth Pay Commission recommendations.
Usually, the income earned in a year is taxed in that particular year, hence whatever the employees receive in this financial year woul be taxed this year. A lot of media sources reported that the entire amount of arrears would attract tax this fiscal.As per the notification issued by the government last month, central government employees will get 40 per cent of arrears during the current financial year and the remaining amount in the next financial year.
Government instructions issued on August 30, 2008, regarding fixation of pay and payment arrears consequent to implementation of the Sixth Central Pay Commission recommendations clearly states that in authorising the arrears income tax as due may also be deducted and credited to the government.
The arrears with effect from January 2006 would cost Rs 29,373 crore. Of the arrears, 40 per cent would be paid during the current year to the 50 lakh employees of the central government.The revised pay scales will add Rs 4,500-5,500 crore to the government exchequer this fiscal in the form of personal income tax.Besides, some money would also come through indirect taxes as some of the increased pay would go into buying products and services, official sources said here.
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Along with the bonanza of receiving the pay arrears following the recommendations of the Sixth Pay Commission, there is also a worry among the employees who are going to receive this pay money as pay arrears. The worry is How much Income tax is payable on the pay arrears?.
There have been some news items on television as well as in the newspapers that most of the pay arrears will go towards payment of income tax once the employees receive the arrears.
However, the government recently, has clarified its stand on the taxation of the pay arrears for the current financial year.Income tax on Pay arrears Sixth CommissionGovernment
representative said that they would tax only 40 per cent of salary arrears to be paid to central government employees in the current fiscal on implementation of Sixth Pay Commission recommendations.
Usually, the income earned in a year is taxed in that particular year, hence whatever the employees receive in this financial year woul be taxed this year. A lot of media sources reported that the entire amount of arrears would attract tax this fiscal.As per the notification issued by the government last month, central government employees will get 40 per cent of arrears during the current financial year and the remaining amount in the next financial year.
Government instructions issued on August 30, 2008, regarding fixation of pay and payment arrears consequent to implementation of the Sixth Central Pay Commission recommendations clearly states that in authorising the arrears income tax as due may also be deducted and credited to the government.
The arrears with effect from January 2006 would cost Rs 29,373 crore. Of the arrears, 40 per cent would be paid during the current year to the 50 lakh employees of the central government.The revised pay scales will add Rs 4,500-5,500 crore to the government exchequer this fiscal in the form of personal income tax.Besides, some money would also come through indirect taxes as some of the increased pay would go into buying products and services, official sources said here.
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Monday, September 22, 2008
Sixth Pay Commission: Perks, Arrears, Increments & Key Points.
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After the recommendations of the Sixth Pay Commission, here is the brief list of Perks, Arrears, Increments & Key Points of the Sixth Pay Commission, as listed in the official report of the Sixth Pay Commission. How much of these perks, arrears and Increments are you elgible to receive depends upon your Pay Band and the salary. You may also check the Online Calculators for Sixth Pay Commission Salary Calculations.
Following are some key points after notification.Government has accepted most of the points but has rejected three recommendations and has put some other contentious issues to be taken up in future.Pay Band and Grade pay:
* Grade Pay up to PB2 recommended by 6CPC accepted as such.
* Revised Grade pay from PB3 and above. Check New pay band and Grade Pay
* The basic pay drawn as on 1.1.2006 on the existing Fifth CPC pay scales will be multiplied by a factor of 1.86 and then rounded off to next multiple of 10. This will be the pay in the revised running Pay Band. Grade Pay, as approved by the Government, corresponding to the pre-revised pay scale, will then be added to the Pay in the revised Pay Band. The total of pay in the Pay Band and grade pay will be the revised Basic Pay as on 1.1.2006.
* Rate of annual increments will be 3% and the rate of variable increment for high achievers in PB-3 will be 4%.
* There will be a uniform date of annual increment, viz. 1st July of every year. Employees completing 6 months and above in the revised pay structure as on 1st of July will be eligible to be granted the increment. The first increment after fixation of pay on 1.1.2006 in the revised pay structure will be granted on 1.7.2006 for those employees for whom the date of next increment was between 1st July, 2006 to 1st Jan 2007.DA and other Allowances
* AICPI (IW) with base 2001 may, henceforth, be used for the purpose of calculating DA till it gets revised. The base using the 2001 series works out to be 115.76. Based on this index the revised DA as on Jan-06, July-06, Jan-07, July-07, Jan-08 and July-08 are estimated to be 0%, 3%, 6%, 9%, 12%, and 16% respectively (based on the calculation made as per index - Exact DA rates are yet to be confirmed by the Government).
* “Campus” restriction for grant of Transport Allowance will be removed. Consequently, employees living in campuses will also be eligible for Transport Allowance. Further, Transport Allowance for the employees at the lowest levels will be increased to Rs.600 (from Rs.400) in A-1/A class cities and Rs.400 (from Rs.300) in other towns.
* New TA - Employees drawing grade pay of Rs. 5400 and above will be eligible to receive TA of Rs.3200 and DA thereon (A1/A class cites) and Rs.1600 and DA thereon (other places. Similarly Employees drawing grade pay of Rs.4200 to Rs.4800 will be eligible to receive TA of Rs. Rs.1600 and DA thereon (A1/A class cites) and Rs.800 and DA thereon (other places).
Employees drawing grade pay of below Rs. 4200 will be eligible to receive TA of Rs. 600 and DA thereon (A1/A class cites) and Rs.400 and DA thereon (other places).
* City Compensatory Allowance abolished.
* Employess living in X (Earlier classified as A-1), Y (Earlier classified as A, B-1 & B-2), and Z (Earlier classified as C and Unclassified) will be eligible for HRA of 30%, 20% and 10% (on Fixed Pay and Grade Pay) respectively.
* Children Education Allowance and Reimbursement of Tuition Fee are merged and reimbursement of Children Education allowance will be paid upto the maximum of Rs.1000 per child per month subject to a maximum of 2 children. Hostel subsidy will be reimbursed upto the maximum limit of Rs.3000 per month per child. The limits would be automatically raised by 25% every time the Dearness Allowance on the revised pay bands goes up by 50%.
* Cycle Allowance, Washing Allowance, Cash Handling Allowance, Special Allowance, Night Duty Allowance and Split Duty Allowance have been doubled. Similarly, rates of allowances specific to different Ministries/Departments/Organisations not covered in this Report will also be doubled. The rates of these allowances will be increased by 25% every time the Dearness Allowance payable on revised pay scales goes up by 50%.
* All provisions concerning travel under LTC are to be retained except frequency of travel in home town concession (up to three times during the first two blocks of 4 years after joining the service).
* The revised allowances, other than dearness allowance, will be effective from 1st day of September, 2008.ACP (Assured Career Progression):
* Three upgradations will be granted under Assured Career Progression (ACP) Scheme at 10, 20 and 30 years as per the modified ACP Scheme recommended by the Commission. ACP Scheme will also be applicable to Group A employees.
* Financial upgradation through ACP will be available whenever a person has spent 10 years continuously in the same grade.
* Benefit of pay fixation available at the time of normal promotion shall be allowed at the time of financial upgradations under the scheme. Thus, an increase of 3% of pay and grade pay shall be available as financial upgradation under the scheme.Other Points accepted by the Government:
* The Commission’s recommendation regarding payment of arrears has been modified to the extent that the arrears will be paid in cash in two instalments – first instalment of 40% during the current financial year (2008-09) and the remaining 60% in the next financial year (2009-10).
* The Government has approved setting up of Anomalies Committees to examine individual, post-specific and cadre-specific anomalies. The Anomalies Committees should endeavour to complete their work in one year.Recommendations not accepted by the Government in Sixth Pay Commission:
* Liberal ‘severance package’ for those employees who want to leave service without pension with more than 15, but less than 20 years of service.
* Recommendation relating to Holiday Policy that there should only be three closed holidays for Government employees.
* Flexi-hours for women employees and flexi-weeks for employees with disabilities.Recommendations of Sixth CPC which will be examined separately :
* Recommendation related to Bonus and Over Time Allowance.
* Recommendation related to General Provident Fund for Central Government employees and Central Government Employees Group Insurance Scheme.
* Introduction of Health Insurance Scheme for Central Government employees and pensioners.
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After the recommendations of the Sixth Pay Commission, here is the brief list of Perks, Arrears, Increments & Key Points of the Sixth Pay Commission, as listed in the official report of the Sixth Pay Commission. How much of these perks, arrears and Increments are you elgible to receive depends upon your Pay Band and the salary. You may also check the Online Calculators for Sixth Pay Commission Salary Calculations.
Following are some key points after notification.Government has accepted most of the points but has rejected three recommendations and has put some other contentious issues to be taken up in future.Pay Band and Grade pay:
* Grade Pay up to PB2 recommended by 6CPC accepted as such.
* Revised Grade pay from PB3 and above. Check New pay band and Grade Pay
* The basic pay drawn as on 1.1.2006 on the existing Fifth CPC pay scales will be multiplied by a factor of 1.86 and then rounded off to next multiple of 10. This will be the pay in the revised running Pay Band. Grade Pay, as approved by the Government, corresponding to the pre-revised pay scale, will then be added to the Pay in the revised Pay Band. The total of pay in the Pay Band and grade pay will be the revised Basic Pay as on 1.1.2006.
* Rate of annual increments will be 3% and the rate of variable increment for high achievers in PB-3 will be 4%.
* There will be a uniform date of annual increment, viz. 1st July of every year. Employees completing 6 months and above in the revised pay structure as on 1st of July will be eligible to be granted the increment. The first increment after fixation of pay on 1.1.2006 in the revised pay structure will be granted on 1.7.2006 for those employees for whom the date of next increment was between 1st July, 2006 to 1st Jan 2007.DA and other Allowances
* AICPI (IW) with base 2001 may, henceforth, be used for the purpose of calculating DA till it gets revised. The base using the 2001 series works out to be 115.76. Based on this index the revised DA as on Jan-06, July-06, Jan-07, July-07, Jan-08 and July-08 are estimated to be 0%, 3%, 6%, 9%, 12%, and 16% respectively (based on the calculation made as per index - Exact DA rates are yet to be confirmed by the Government).
* “Campus” restriction for grant of Transport Allowance will be removed. Consequently, employees living in campuses will also be eligible for Transport Allowance. Further, Transport Allowance for the employees at the lowest levels will be increased to Rs.600 (from Rs.400) in A-1/A class cities and Rs.400 (from Rs.300) in other towns.
* New TA - Employees drawing grade pay of Rs. 5400 and above will be eligible to receive TA of Rs.3200 and DA thereon (A1/A class cites) and Rs.1600 and DA thereon (other places. Similarly Employees drawing grade pay of Rs.4200 to Rs.4800 will be eligible to receive TA of Rs. Rs.1600 and DA thereon (A1/A class cites) and Rs.800 and DA thereon (other places).
Employees drawing grade pay of below Rs. 4200 will be eligible to receive TA of Rs. 600 and DA thereon (A1/A class cites) and Rs.400 and DA thereon (other places).
* City Compensatory Allowance abolished.
* Employess living in X (Earlier classified as A-1), Y (Earlier classified as A, B-1 & B-2), and Z (Earlier classified as C and Unclassified) will be eligible for HRA of 30%, 20% and 10% (on Fixed Pay and Grade Pay) respectively.
* Children Education Allowance and Reimbursement of Tuition Fee are merged and reimbursement of Children Education allowance will be paid upto the maximum of Rs.1000 per child per month subject to a maximum of 2 children. Hostel subsidy will be reimbursed upto the maximum limit of Rs.3000 per month per child. The limits would be automatically raised by 25% every time the Dearness Allowance on the revised pay bands goes up by 50%.
* Cycle Allowance, Washing Allowance, Cash Handling Allowance, Special Allowance, Night Duty Allowance and Split Duty Allowance have been doubled. Similarly, rates of allowances specific to different Ministries/Departments/Organisations not covered in this Report will also be doubled. The rates of these allowances will be increased by 25% every time the Dearness Allowance payable on revised pay scales goes up by 50%.
* All provisions concerning travel under LTC are to be retained except frequency of travel in home town concession (up to three times during the first two blocks of 4 years after joining the service).
* The revised allowances, other than dearness allowance, will be effective from 1st day of September, 2008.ACP (Assured Career Progression):
* Three upgradations will be granted under Assured Career Progression (ACP) Scheme at 10, 20 and 30 years as per the modified ACP Scheme recommended by the Commission. ACP Scheme will also be applicable to Group A employees.
* Financial upgradation through ACP will be available whenever a person has spent 10 years continuously in the same grade.
* Benefit of pay fixation available at the time of normal promotion shall be allowed at the time of financial upgradations under the scheme. Thus, an increase of 3% of pay and grade pay shall be available as financial upgradation under the scheme.Other Points accepted by the Government:
* The Commission’s recommendation regarding payment of arrears has been modified to the extent that the arrears will be paid in cash in two instalments – first instalment of 40% during the current financial year (2008-09) and the remaining 60% in the next financial year (2009-10).
* The Government has approved setting up of Anomalies Committees to examine individual, post-specific and cadre-specific anomalies. The Anomalies Committees should endeavour to complete their work in one year.Recommendations not accepted by the Government in Sixth Pay Commission:
* Liberal ‘severance package’ for those employees who want to leave service without pension with more than 15, but less than 20 years of service.
* Recommendation relating to Holiday Policy that there should only be three closed holidays for Government employees.
* Flexi-hours for women employees and flexi-weeks for employees with disabilities.Recommendations of Sixth CPC which will be examined separately :
* Recommendation related to Bonus and Over Time Allowance.
* Recommendation related to General Provident Fund for Central Government employees and Central Government Employees Group Insurance Scheme.
* Introduction of Health Insurance Scheme for Central Government employees and pensioners.
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Saturday, September 20, 2008
Antony: Remove pay anomalies for Armed forces.
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Defence Minister A. K. Antony has written to Union Finance Minister P. Chidambaram seeking early resolution of the anomalies affecting the armed forces in the Sixth Pay Commission report.
Mr. Antony took up cudgels on behalf of the armed forces after the issue did not figure in two Cabinet meetings despite service chiefs indicating their disinclination to implement the recommendations till the anomalies were corrected.
Four issues highlighted
In his letter to Mr. Chidambaram, Mr. Antony has highlighted four issues that have caused concern in the armed forces. The failure of a high-level committee to resolve them led to the three service chiefs sending a joint representation to the government. The Chairman of the Chief of Staff Committee and Chief of the Naval Staff, Admiral Sureesh Mehta, also wrote to Prime Minister Manmohan Singh pointing out the anomalies.
Mr. Antony has touched upon the incorrect fixing of grade pay of officers up to the rank of Brigadier (and equivalent in the other two services), lower pay band for Lieutenant Colonels as compared to their civilian counterparts, reinstating pensionary weightage for personnel below officer rank and same status to Lt. Generals who are not commanders.
A Lt. Col. was equal in pay to NFSG (non functional selection grade) Director of the IAS and a commandant of the paramilitary forces.
All the three had an annual increment of Rs. 400. But now, the IAS director will get over Rs. 11,000 more per month than the Lt. Col and a commandant nearly Rs. 10,000 more.
Even if the military pay of Rs. 6,000 is added, the paramilitary forces, the IAS and the IPS would draw a higher salary.
Service officers said they were not asking for more pay than others but at least equal to them.
This has had two major ill-effects. First, civilian officers working under Lt. Col.s (such as superintending engineers or commandants in paramilitary services) would become senior requiring an organisational overhaul. Second, paramilitary and central police organisations would become for the youth.
Mr. Antony has also sought retention of the existing 70 per cent pensionary weightage for personnel below the officer rank (PBOR) when seeking lateral entry for the retired men in the paramilitary and the Central police forces or re-employment.
Lateral entry
The Sixth Pay Commission proposes lateral entry for PBORs into the paramilitary and Central police forces but they would forego 50 per cent of their pension. As the government is yet to approve the proposal for lateral entry, which has led to a situation where the PBORs lose out both on re-employment and pension fronts.
Mr. Antony has also sought removal of grade pay disparities for the ranks of captains to colonels as compared to civilian counterparts and creating of a new pay band of Higher Administrative Grade (HAG) plus for all Lt. Generals (and their equivalents) as has been done for all the Director General level officers of civil services and the paramilitary forces.
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Defence Minister A. K. Antony has written to Union Finance Minister P. Chidambaram seeking early resolution of the anomalies affecting the armed forces in the Sixth Pay Commission report.
Mr. Antony took up cudgels on behalf of the armed forces after the issue did not figure in two Cabinet meetings despite service chiefs indicating their disinclination to implement the recommendations till the anomalies were corrected.
Four issues highlighted
In his letter to Mr. Chidambaram, Mr. Antony has highlighted four issues that have caused concern in the armed forces. The failure of a high-level committee to resolve them led to the three service chiefs sending a joint representation to the government. The Chairman of the Chief of Staff Committee and Chief of the Naval Staff, Admiral Sureesh Mehta, also wrote to Prime Minister Manmohan Singh pointing out the anomalies.
Mr. Antony has touched upon the incorrect fixing of grade pay of officers up to the rank of Brigadier (and equivalent in the other two services), lower pay band for Lieutenant Colonels as compared to their civilian counterparts, reinstating pensionary weightage for personnel below officer rank and same status to Lt. Generals who are not commanders.
A Lt. Col. was equal in pay to NFSG (non functional selection grade) Director of the IAS and a commandant of the paramilitary forces.
All the three had an annual increment of Rs. 400. But now, the IAS director will get over Rs. 11,000 more per month than the Lt. Col and a commandant nearly Rs. 10,000 more.
Even if the military pay of Rs. 6,000 is added, the paramilitary forces, the IAS and the IPS would draw a higher salary.
Service officers said they were not asking for more pay than others but at least equal to them.
This has had two major ill-effects. First, civilian officers working under Lt. Col.s (such as superintending engineers or commandants in paramilitary services) would become senior requiring an organisational overhaul. Second, paramilitary and central police organisations would become for the youth.
Mr. Antony has also sought retention of the existing 70 per cent pensionary weightage for personnel below the officer rank (PBOR) when seeking lateral entry for the retired men in the paramilitary and the Central police forces or re-employment.
Lateral entry
The Sixth Pay Commission proposes lateral entry for PBORs into the paramilitary and Central police forces but they would forego 50 per cent of their pension. As the government is yet to approve the proposal for lateral entry, which has led to a situation where the PBORs lose out both on re-employment and pension fronts.
Mr. Antony has also sought removal of grade pay disparities for the ranks of captains to colonels as compared to civilian counterparts and creating of a new pay band of Higher Administrative Grade (HAG) plus for all Lt. Generals (and their equivalents) as has been done for all the Director General level officers of civil services and the paramilitary forces.
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Goa Cabinet to decide on pay hike on September 23.
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The state government is likely to implement the 6th Pay Commission's recommendations with effect from November 2008. The state cabinet will formally decide on the issue when it meets on September 23.
The finance secretary Udipta Ray, along with joint secretary Suresh Shanbogue gave a presentation to the cabinet about the implications of the 6th Pay Commission for Goa on Thursday.
Sources in the finance department said that the 46,000 strong government workforce will get hiked salaries from the month of November, which will be paid on November 30. The average jump in salary for any government servant ranges from 30 to 35 per cent. This includes house rent allowance (HRA) which has gone up by around 15 to 20%. The city compensatory allowance (CCA) has been abolished and travelling allowance (TA) put in its place. As the dearness allowance increases , so does the travelling allowance, sources said. The annual increment will be 3% of basic pay, and the date of increments is uniformly set for July 1 every year to all employees. Full pension will be given after completion of 20 years, that is, 50% of last 10 months average emoluments, sources said.
Implementing the 6th Pay Commission recommendations will entail an additional burden of around Rs 25 crore per month on the government . The overall liability on the government in terms of salaries and arrears for the period from January 1, 2006, to August 31, 2008, is around Rs 800 crore.
While these are some of the salient features of the 6th Pay Commission recommendations to be implemented in Goa, government employees are eagerly waiting for the cabinet to give its formal nod to the recommendations during its meeting on September 2.
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The state government is likely to implement the 6th Pay Commission's recommendations with effect from November 2008. The state cabinet will formally decide on the issue when it meets on September 23.
The finance secretary Udipta Ray, along with joint secretary Suresh Shanbogue gave a presentation to the cabinet about the implications of the 6th Pay Commission for Goa on Thursday.
Sources in the finance department said that the 46,000 strong government workforce will get hiked salaries from the month of November, which will be paid on November 30. The average jump in salary for any government servant ranges from 30 to 35 per cent. This includes house rent allowance (HRA) which has gone up by around 15 to 20%. The city compensatory allowance (CCA) has been abolished and travelling allowance (TA) put in its place. As the dearness allowance increases , so does the travelling allowance, sources said. The annual increment will be 3% of basic pay, and the date of increments is uniformly set for July 1 every year to all employees. Full pension will be given after completion of 20 years, that is, 50% of last 10 months average emoluments, sources said.
Implementing the 6th Pay Commission recommendations will entail an additional burden of around Rs 25 crore per month on the government . The overall liability on the government in terms of salaries and arrears for the period from January 1, 2006, to August 31, 2008, is around Rs 800 crore.
While these are some of the salient features of the 6th Pay Commission recommendations to be implemented in Goa, government employees are eagerly waiting for the cabinet to give its formal nod to the recommendations during its meeting on September 2.
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Thursday, September 18, 2008
Clarification issued by Govt on Increment and promotions after 1-1-2006
Clarification 1: The date of next increment
(i) As per Rule 10 of CCS (RP) Rules, 2008 there will be one uniform date of annual increment, viz. 1St July of every year. Government servants completing 6 months and above in the revised pay structure as on 1St of July will be eligible to be granted the increment. Accordingly, all Government servants who earned their last increment between 02.01.2005 and 01.01.2006 would get their next increment on 01.07.2006.
(ii) For those employees whose date of next increment falls on 01.01.2006, the instructions already provide for granting an increment in the pre-revised pay scale as on 01.01.2006 and then fixing their pay in the revised pay scales. Such Government servants would also get their next increment on 01.07.2006.
Clarification 2: The method of fixation of pay on promotion after 01.01.2006 On promotion from one grade to another/ financial upgradation under ACP, a Government servant has an option under FR 22(I)(a)(1) to get his pay fixed in the higher post either from the date of his promotion, or from date of his next increment, viz. 1st July of the year.
The pay will be fixed in the following manner in the revised pay structure:-
a) In case the Government servant opts to get his pay fixed from his date of next increment, then, on the date of promotion, pay in the pay band shall continue unchanged, but the grade pay of the higher post will be granted. Further re-fixation will be done on the date of his next increment i.e. 1St July. On that day, he will be granted two increments; one annual increment and the second on account of promotion. While computing these two increments, basic pay prior to the date of promotion shall be taken into account. To illustrate, if the basic pay prior to the date of promotion was Rs.100, first increment would be computed on Rs.100 and the second on Rs.103.
b) In case the Government servant opts to get his pay fixed in the higher grade from the date of his promotion, he shall get his first increment in the higher grade on the next 1St July if he was promoted between 2nd July and 1st January. However, if he was promoted between 2nd January and 30th June of a particular year, he shall get his increment on 1St July of next year.Clarification 3: Use of fitment tables for cases of pay fixation under Rule 11 of CCS (RP) Rules, 2008 Rule 11 of CCS (Revised Pay) Rules, 2008 provides for fixation of pay in the revised pay structure subsequent to the 1st day of January, 2006. When the pay of a Government servant will be fixed as per Rule 11 on a date subsequent to 01.01.2006, the fitment tables annexed with this Department's O.M. of even number dated 30.08.2008 will be used as prescribed in the relevant provisions contained in para 2 of the O.M. The pre-revised pay to be reckoned in such cases will be the pay of the Government servant on the day of such fixation.
Clarification 4: Fixation of pay of government servants who were on deputation and got promoted in the cadre subsequently while still on deputation
(i) In case the Government servant was on deputation on 1.1.06 and got promoted to a higher post in his cadre after 1.1.06, but was not granted proforma promotion under the 'Next Below Rule', his pay will get fixed w.e.f. 1.1.06 in the grade which he was holding on 1.1.06.
(ii) In case the Government servant had been granted proforma promotion under the 'Next Below Rule', his pay will be fixed using the provisions of the 'Next Below Rule' as explained in below
(iii) In the revised pay structure , the pay of a government servant would be regulated in the following manner on grant of proforma promotion to him under 'Next Below Rule':
(a) In case a Government servant on deputation to a post gets promoted in his cadre to a post in a higher grade, his pay in the pay band will be fixed with reference to the pay in the pay band of the employee immediately junior to him in the cadre of his service. However , the government servant in question would continue to draw the grade pay attached to the deputation post for the remaining duration of the deputation.
(b) In case a Government servant on deputation to a post in PB-4 gets promoted in his cadre to a post in HAG+, his basic pay will be fixed with reference to the basic pay of the employee immediately junior to him in the cadre of his service , but the total of pay in the pay band and grade pay of the deputation post will not exceed Rs.79,000.
(c) In case a Government servant on deputation to a post in PB-4 gets promoted in his cadre to a post in the apex scale, his basic pay will be fixed with reference to the basic pay of the employee immediately junior to him in the cadre of his service, but the total of pay in the pay band and grade pay of the deputation post will not exceed Rs.79,000.
(d) In case a Government servant on deputation to a post in HAG+ gets promoted in his cadre to a post in the apex scale, his basic pay will be fixed with reference to the basic pay of the employee immediately junior to him in the cadre of his service.Clarification
5: Fixation of pay of government servants who go on deputation to a lower post
(i) In case a Government servant goes on deputation to a post carrying a lower grade pay, his pay in the pay band would continue unchanged, but he will be granted the grade pay of the lower post for the entire duration of the deputation.
(ii) In case a Government servant in HAG+ scale goes on deputation to a lower post in PB-4 , his basic pay in the deputation post will be fixed at a stage equal to his basic pay in the cadre of his service , but the total of pay in the pay band and grade pay of the deputation post will not exceed Rs.79,000.
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(i) As per Rule 10 of CCS (RP) Rules, 2008 there will be one uniform date of annual increment, viz. 1St July of every year. Government servants completing 6 months and above in the revised pay structure as on 1St of July will be eligible to be granted the increment. Accordingly, all Government servants who earned their last increment between 02.01.2005 and 01.01.2006 would get their next increment on 01.07.2006.
(ii) For those employees whose date of next increment falls on 01.01.2006, the instructions already provide for granting an increment in the pre-revised pay scale as on 01.01.2006 and then fixing their pay in the revised pay scales. Such Government servants would also get their next increment on 01.07.2006.
Clarification 2: The method of fixation of pay on promotion after 01.01.2006 On promotion from one grade to another/ financial upgradation under ACP, a Government servant has an option under FR 22(I)(a)(1) to get his pay fixed in the higher post either from the date of his promotion, or from date of his next increment, viz. 1st July of the year.
The pay will be fixed in the following manner in the revised pay structure:-
a) In case the Government servant opts to get his pay fixed from his date of next increment, then, on the date of promotion, pay in the pay band shall continue unchanged, but the grade pay of the higher post will be granted. Further re-fixation will be done on the date of his next increment i.e. 1St July. On that day, he will be granted two increments; one annual increment and the second on account of promotion. While computing these two increments, basic pay prior to the date of promotion shall be taken into account. To illustrate, if the basic pay prior to the date of promotion was Rs.100, first increment would be computed on Rs.100 and the second on Rs.103.
b) In case the Government servant opts to get his pay fixed in the higher grade from the date of his promotion, he shall get his first increment in the higher grade on the next 1St July if he was promoted between 2nd July and 1st January. However, if he was promoted between 2nd January and 30th June of a particular year, he shall get his increment on 1St July of next year.Clarification 3: Use of fitment tables for cases of pay fixation under Rule 11 of CCS (RP) Rules, 2008 Rule 11 of CCS (Revised Pay) Rules, 2008 provides for fixation of pay in the revised pay structure subsequent to the 1st day of January, 2006. When the pay of a Government servant will be fixed as per Rule 11 on a date subsequent to 01.01.2006, the fitment tables annexed with this Department's O.M. of even number dated 30.08.2008 will be used as prescribed in the relevant provisions contained in para 2 of the O.M. The pre-revised pay to be reckoned in such cases will be the pay of the Government servant on the day of such fixation.
Clarification 4: Fixation of pay of government servants who were on deputation and got promoted in the cadre subsequently while still on deputation
(i) In case the Government servant was on deputation on 1.1.06 and got promoted to a higher post in his cadre after 1.1.06, but was not granted proforma promotion under the 'Next Below Rule', his pay will get fixed w.e.f. 1.1.06 in the grade which he was holding on 1.1.06.
(ii) In case the Government servant had been granted proforma promotion under the 'Next Below Rule', his pay will be fixed using the provisions of the 'Next Below Rule' as explained in below
(iii) In the revised pay structure , the pay of a government servant would be regulated in the following manner on grant of proforma promotion to him under 'Next Below Rule':
(a) In case a Government servant on deputation to a post gets promoted in his cadre to a post in a higher grade, his pay in the pay band will be fixed with reference to the pay in the pay band of the employee immediately junior to him in the cadre of his service. However , the government servant in question would continue to draw the grade pay attached to the deputation post for the remaining duration of the deputation.
(b) In case a Government servant on deputation to a post in PB-4 gets promoted in his cadre to a post in HAG+, his basic pay will be fixed with reference to the basic pay of the employee immediately junior to him in the cadre of his service , but the total of pay in the pay band and grade pay of the deputation post will not exceed Rs.79,000.
(c) In case a Government servant on deputation to a post in PB-4 gets promoted in his cadre to a post in the apex scale, his basic pay will be fixed with reference to the basic pay of the employee immediately junior to him in the cadre of his service, but the total of pay in the pay band and grade pay of the deputation post will not exceed Rs.79,000.
(d) In case a Government servant on deputation to a post in HAG+ gets promoted in his cadre to a post in the apex scale, his basic pay will be fixed with reference to the basic pay of the employee immediately junior to him in the cadre of his service.Clarification
5: Fixation of pay of government servants who go on deputation to a lower post
(i) In case a Government servant goes on deputation to a post carrying a lower grade pay, his pay in the pay band would continue unchanged, but he will be granted the grade pay of the lower post for the entire duration of the deputation.
(ii) In case a Government servant in HAG+ scale goes on deputation to a lower post in PB-4 , his basic pay in the deputation post will be fixed at a stage equal to his basic pay in the cadre of his service , but the total of pay in the pay band and grade pay of the deputation post will not exceed Rs.79,000.
..
6th pay gains: Cut taxes to benefit staff.
Government employees are upbeat over the Sixth Pay Commission report, little realizing that more than them it is the Government which is the main beneficiary. Of the Rs 16,000-crore benefit that the panel is supposed to give over Rs 5,300 crore would go back to the Government by way of income-tax at 33 per cent alone. In fact, some employees would now be subjected to an additional tax as their salaries would touch the Rs 10-lakh per annum mark.
In its latest report, the Reserve Bank of India has come up with the desired suggestion of reducing the income-tax rate and raising exemption limits, for increasing the disposable income and ease inflationary pressure. The high inflation rate, around 13 per cent on wholesale price index (more on the basis of consumer price index) has already eroded substantial part of the pay panel benefit. The taxes would eat up the rest.
It is well-known that wage revision is undertaken primarily to neutralise the effect of price rise. One, it is dearness allowance component which takes care of it marginally. Two, it keeps the market going at an even pace. For with higher wages one is expected to increase purchases and help other sectors of the market.
It is no secret that the market is highly depressed owing to high inflationary pressure. Industrial growth too has slid. "There are also some downside risks to the industrial growth momentum during 2008-09", admits the RBI. Growth in other sectors too has fallen including infrastructure, power and the core sector. Thus raising, what RBI says are "apprehensions regarding sustainability of industrial and manufacturing growth".
Clearly, the central bank is concerned that inflation has eroded the disposable income of the middle-class, supposedly the "engine" for overall growth. It has, in no uncertain terms, expressed concern that the Government has not taken any step to rectify this and is circumspect on the benefit to the market of the so-called 'higher wages' of Central Government employees. Moreover, the RBI is wary that as the salaried class is in a tight spot, it may default on repayment of EMIs and pose a risk to the banking system.
In the face of the above, the RBI has thus vociferously suggested "adjustment" - the bank's euphemism for reduction - in the income tax and excise duty for increasing the disposable income of the middle-class. "It may have a possible impact on consumption demand for industrial goods," is the RBI's guess.
In all fairness, higher salaries were expected to surge other economic activities. But with the government policy eating into the kitty itself, that opportunity is lost. Therefore, it is time the Government has a re-look at its tax policy. The taxes, be it corporate or personal income-tax, remain at a very high level. Over the years, big time industrialists--Rahul Bajaj, Arun Bharat Ram or Sanjiv Goenka, Nusli Wadia, or Ajay Piramal--have expressed concern over the high tax regime. There is unanimity that high taxes only lead to avoidance and evasion. And yet our Government has unfortunately not tied up the taxes with its liberalisation policy.
Moreover, often taxes are unproductive and unimaginative. The answer lies in lowering the taxes and abolishing the personal income tax, which unfortunately has come to be known as the "impoverishing tax". The Kelkar committee had estimated that 48 per cent of the direct tax collected goes into tax administration! It is certainly one of the most expensive systems of realisation of resources. Any corporate would simply go bust at this kind of a cost.
Let's study the scenario. Today, there are more I-T commissioners and naturally the administration costs have gone up. In addition, the income-tax department has started spending on decorative and unrelated activities. As such, the Government not only needs to review the size of the department but also prune it. This apart, extra staff in a department means not so clean operations, as some instances have shown.
Many a times the large official force ends up causing harassment to the public simply because it is under pressure to justify its existence. This again adds up to the cost. Then there are the subsequent litigation and appeal processes, which too are a burden on the economy, other than causing loss to productive man hours. The cumbersome I-T rules only make the process more difficult. A Mahabharata of rules are eventually added every yea and each has several interpretations.
In the past, the Government has had the experience of overall higher tax accrual following tax rates being moderated from 97 per cent to 33 per cent. This meant an erosion of over one-third income in direct tax. And, there are umpteen cases of indirect taxes, which rob an average Indian of almost another 40 per cent of his/her income.
Thus, it is crystal clear: tax rates need to be cut. Finance Minister P Chidambaram must examine the pros and cons of a high tax regime carefully, so that all the money that is being generated is gainfully utilized and not burnt up. The Government should, in fact bring it down to the level of five per cent for an income up to Rs 5 lakh a year and beyond that to a maximum level of 10 per cent. Even the corporate incomes should not be taxed at more than 15 per cent.
Let's face the fact that if the taxes were low, people would voluntarily prefer to pay rather than avoid these. At the same time, the Government's coffers would get bulkier as more and more people would be integrated with the system. As of now most taxpayers are out of it and the taxmen are well aware.
What is being suggested is no revolutionary step. It only makes the tax system more imaginative, less exploitative and interwoven with market realities. At the end, an affordable tax regime would reduce the cost of tax policing, boost the market and bury inflation.
Shivaji Sarkar, -INFA
..
In its latest report, the Reserve Bank of India has come up with the desired suggestion of reducing the income-tax rate and raising exemption limits, for increasing the disposable income and ease inflationary pressure. The high inflation rate, around 13 per cent on wholesale price index (more on the basis of consumer price index) has already eroded substantial part of the pay panel benefit. The taxes would eat up the rest.
It is well-known that wage revision is undertaken primarily to neutralise the effect of price rise. One, it is dearness allowance component which takes care of it marginally. Two, it keeps the market going at an even pace. For with higher wages one is expected to increase purchases and help other sectors of the market.
It is no secret that the market is highly depressed owing to high inflationary pressure. Industrial growth too has slid. "There are also some downside risks to the industrial growth momentum during 2008-09", admits the RBI. Growth in other sectors too has fallen including infrastructure, power and the core sector. Thus raising, what RBI says are "apprehensions regarding sustainability of industrial and manufacturing growth".
Clearly, the central bank is concerned that inflation has eroded the disposable income of the middle-class, supposedly the "engine" for overall growth. It has, in no uncertain terms, expressed concern that the Government has not taken any step to rectify this and is circumspect on the benefit to the market of the so-called 'higher wages' of Central Government employees. Moreover, the RBI is wary that as the salaried class is in a tight spot, it may default on repayment of EMIs and pose a risk to the banking system.
In the face of the above, the RBI has thus vociferously suggested "adjustment" - the bank's euphemism for reduction - in the income tax and excise duty for increasing the disposable income of the middle-class. "It may have a possible impact on consumption demand for industrial goods," is the RBI's guess.
In all fairness, higher salaries were expected to surge other economic activities. But with the government policy eating into the kitty itself, that opportunity is lost. Therefore, it is time the Government has a re-look at its tax policy. The taxes, be it corporate or personal income-tax, remain at a very high level. Over the years, big time industrialists--Rahul Bajaj, Arun Bharat Ram or Sanjiv Goenka, Nusli Wadia, or Ajay Piramal--have expressed concern over the high tax regime. There is unanimity that high taxes only lead to avoidance and evasion. And yet our Government has unfortunately not tied up the taxes with its liberalisation policy.
Moreover, often taxes are unproductive and unimaginative. The answer lies in lowering the taxes and abolishing the personal income tax, which unfortunately has come to be known as the "impoverishing tax". The Kelkar committee had estimated that 48 per cent of the direct tax collected goes into tax administration! It is certainly one of the most expensive systems of realisation of resources. Any corporate would simply go bust at this kind of a cost.
Let's study the scenario. Today, there are more I-T commissioners and naturally the administration costs have gone up. In addition, the income-tax department has started spending on decorative and unrelated activities. As such, the Government not only needs to review the size of the department but also prune it. This apart, extra staff in a department means not so clean operations, as some instances have shown.
Many a times the large official force ends up causing harassment to the public simply because it is under pressure to justify its existence. This again adds up to the cost. Then there are the subsequent litigation and appeal processes, which too are a burden on the economy, other than causing loss to productive man hours. The cumbersome I-T rules only make the process more difficult. A Mahabharata of rules are eventually added every yea and each has several interpretations.
In the past, the Government has had the experience of overall higher tax accrual following tax rates being moderated from 97 per cent to 33 per cent. This meant an erosion of over one-third income in direct tax. And, there are umpteen cases of indirect taxes, which rob an average Indian of almost another 40 per cent of his/her income.
Thus, it is crystal clear: tax rates need to be cut. Finance Minister P Chidambaram must examine the pros and cons of a high tax regime carefully, so that all the money that is being generated is gainfully utilized and not burnt up. The Government should, in fact bring it down to the level of five per cent for an income up to Rs 5 lakh a year and beyond that to a maximum level of 10 per cent. Even the corporate incomes should not be taxed at more than 15 per cent.
Let's face the fact that if the taxes were low, people would voluntarily prefer to pay rather than avoid these. At the same time, the Government's coffers would get bulkier as more and more people would be integrated with the system. As of now most taxpayers are out of it and the taxmen are well aware.
What is being suggested is no revolutionary step. It only makes the tax system more imaginative, less exploitative and interwoven with market realities. At the end, an affordable tax regime would reduce the cost of tax policing, boost the market and bury inflation.
Shivaji Sarkar, -INFA
..
Wednesday, September 17, 2008
Let's not demoralise defence forces.
.
Prior to the appointment of a Sixth Central Pay Commission (CPC) for better pay scales for Central Government employees including the defence services, the three Services chiefs had asked the Government for a separate Pay Commission for defence services. The reason: there are different service conditions, which have not been appreciated by the previous pay commissions.
The Service chiefs have been proved right. They are "unwilling to implement" the Sixth CPC report as it is. Recent media reports state that the three Chiefs have apprised Defence Minister AK Antony and want the "anomalies" removed and the status and parity of payscales to be restored.
After sensing the mood, Antony is learnt to have assured the Chiefs that he would take up the matter with the Government. Till then, the three Chiefs have sought that implementation for officer ranks be "held in abeyance." They have, however, thanked the Government for hiking salaries of Personnel Below Officer Ranks (PBORs) as desired. But, their grievance that the disparity between service officers and their civil service counterparts not only remains, but has increased. Basically they point out:
* Disparity in Pay Bands: The chiefs claim the Committee of Secretaries (CoS) moved the Director rank into Pay Band 4 but retained Lt. Col and its equivalent in other services in Pay Band 3. Earlier, they claim, a Lt Col got the same pay as an IAS Director and Rs 800 more than a non-IAS Director. Now he gets Rs 14000 less than an IAS director and Rs 11000 less than a non-IAS director.
* Disparity in Grade Pay: The CoS agreed to their demand to an increase in grade pay across middle-rank officers but also increased the grade pay of civil servants, thereby retaining disparity, the chiefs say. For example, he Pay Commission recommended Rs 6600 for a civil servant equivalent to a Major who was to get Rs 6100. After review, a Major will now get Rs 6600 but his equivalent in the civil service will get Rs 7600.
* Restricting elite list: The new category of HAG-plus (Higher Administrative Grade) includes all DGs and DGPs but only Army Commanders and their equivalents in other services, the chiefs complain. Their demand: all Lt. Gen officers be included in this category. The Defence Ministry is said to have conveyed that the objections are being looked into and a response will be given soon.
While Antony appears to be sympathetic, the Finance Ministry has strongly denied any "injustice" to the Armed forces in this new pay structure. Its officials are emphatic: "In no way are the defence personnel getting any lesser pay than their civilian counterparts. In fact, they will carry home fatter pay packets than civilian services and paramilitary under the new salary structures of the CPC."
Quoting the new feature of Military Service Pay (MSP) in the CPC, officials say the Armed forces officers would uniformly get Rs 6,000 more, whereas such a pay was not offered to the civilians and the paramilitary. "Under the 5th CPC there was no compensation provided for the risk factor involved in the defence personnel's job profile. MSP has taken care of that lacuna in the 6th CPC."
Also, the MSP would be counted along with the Basic Pay of Armed Forces officers for calculating the Dearness Allowance (DA). "That would provide them with Rs 960 DA and the amount would increase as the DA is hiked," is another argument. In addition, defence officers posted in Siachen would get an allowance of Rs 14,000 and an High Altitude Allowance of Rs 8,000, which adds up to a total of Rs 22,000. Earlier, the personnel were getting only Rs 7,000 as Siachen Allowance and Rs 4,000 as High Altitude Allowance, adding up to Rs 11,000.
Citing an example of the entry-level defence officers in the rank of Lieutenants and equivalent in Navy and Air Force, the officials explain that under the 5th CPC under the pay scale of Rs 8,250-10,500, they received a salary totalling Rs 15,252 as on December 31, 2005 . "On January 1, 2006 , from when the 6th CPC would be effective, a Lieutenant under the Pay Band-3 will receive an additional Grade Pay of Rs 5,400 and MSP of Rs 6,000, making his or her total emoluments Rs 27,000. As on September 1, 2008 , when the 6th CPC was implemented, a Lieutenant would get total emoluments of Rs 28, 947," the officials add. As against this, their civilian counterparts in the pay scale of Rs 8,000-13,500 under 5th CPC had received a pay of Rs 14,880.
Another argument put forth is: A Lt Colonel under the 5th CPC received a Gross Pay of Rs 28,086. But under the 6th CPC, he would receive a Grade Pay of Rs 7,600 and MSP of Rs 6,000 under Pay Band-3. His pay as on January 1, 2006 , would be Rs 41,690. From September 1, 2008 , when 6th CPC was implemented, Lt Colonel's emoluments stood at Rs 45,000.
With the Finance Ministry virtually rejecting their demands, the Armed Forces' chiefs rightly have asked that the issues raised by them should be addressed by the country's political leadership and not Anomalies Committee. "The CPC created disparities are not just pay anomalies, but core issues. Hence, these cannot be left to the Anomalies Committee. But the Cabinet must consider them and issue a corrigendum to the CPC notification," Navy chief Admiral Sureesh Mehta, in his capacity as the Chairman of the Chiefs of Staff Committee, insists.
Clearly, the issues such as "extant parities of pay" to Lieutenant Colonels and equivalent officers vis-Ã -vis their civilian and paramilitary counterparts, is not just related to the CPC, but could seriously jeopardise "operational" and "functional" harmony of the defence forces, whenever and wherever they worked alongside the civilian and paramilitary forces officers. .
Let us face the facts that the disparity "badly demoralise" the officers of the Armed Forces and if these persist, it could lead to "despondency" among the defence cadre. Admiral Mehta has even met Prime Minister Manmohan Singh to press for the removal of anomalies, explaining that it has serious implications of the command and control element during Unified Command Operations if not addressed. Singh is learnt to have promised that he will personally look into the issues raised.
Let us hope that the Cabinet Committee on Security removes these disparities so that the soldiers do not get demoralised and save the nation from a serious catastrophe. A demoralised force cannot save the sovereignty, security and integrity of the country.
Col (Dr) PK Vasudeva (Retd) -INFA
..
Prior to the appointment of a Sixth Central Pay Commission (CPC) for better pay scales for Central Government employees including the defence services, the three Services chiefs had asked the Government for a separate Pay Commission for defence services. The reason: there are different service conditions, which have not been appreciated by the previous pay commissions.
The Service chiefs have been proved right. They are "unwilling to implement" the Sixth CPC report as it is. Recent media reports state that the three Chiefs have apprised Defence Minister AK Antony and want the "anomalies" removed and the status and parity of payscales to be restored.
After sensing the mood, Antony is learnt to have assured the Chiefs that he would take up the matter with the Government. Till then, the three Chiefs have sought that implementation for officer ranks be "held in abeyance." They have, however, thanked the Government for hiking salaries of Personnel Below Officer Ranks (PBORs) as desired. But, their grievance that the disparity between service officers and their civil service counterparts not only remains, but has increased. Basically they point out:
* Disparity in Pay Bands: The chiefs claim the Committee of Secretaries (CoS) moved the Director rank into Pay Band 4 but retained Lt. Col and its equivalent in other services in Pay Band 3. Earlier, they claim, a Lt Col got the same pay as an IAS Director and Rs 800 more than a non-IAS Director. Now he gets Rs 14000 less than an IAS director and Rs 11000 less than a non-IAS director.
* Disparity in Grade Pay: The CoS agreed to their demand to an increase in grade pay across middle-rank officers but also increased the grade pay of civil servants, thereby retaining disparity, the chiefs say. For example, he Pay Commission recommended Rs 6600 for a civil servant equivalent to a Major who was to get Rs 6100. After review, a Major will now get Rs 6600 but his equivalent in the civil service will get Rs 7600.
* Restricting elite list: The new category of HAG-plus (Higher Administrative Grade) includes all DGs and DGPs but only Army Commanders and their equivalents in other services, the chiefs complain. Their demand: all Lt. Gen officers be included in this category. The Defence Ministry is said to have conveyed that the objections are being looked into and a response will be given soon.
While Antony appears to be sympathetic, the Finance Ministry has strongly denied any "injustice" to the Armed forces in this new pay structure. Its officials are emphatic: "In no way are the defence personnel getting any lesser pay than their civilian counterparts. In fact, they will carry home fatter pay packets than civilian services and paramilitary under the new salary structures of the CPC."
Quoting the new feature of Military Service Pay (MSP) in the CPC, officials say the Armed forces officers would uniformly get Rs 6,000 more, whereas such a pay was not offered to the civilians and the paramilitary. "Under the 5th CPC there was no compensation provided for the risk factor involved in the defence personnel's job profile. MSP has taken care of that lacuna in the 6th CPC."
Also, the MSP would be counted along with the Basic Pay of Armed Forces officers for calculating the Dearness Allowance (DA). "That would provide them with Rs 960 DA and the amount would increase as the DA is hiked," is another argument. In addition, defence officers posted in Siachen would get an allowance of Rs 14,000 and an High Altitude Allowance of Rs 8,000, which adds up to a total of Rs 22,000. Earlier, the personnel were getting only Rs 7,000 as Siachen Allowance and Rs 4,000 as High Altitude Allowance, adding up to Rs 11,000.
Citing an example of the entry-level defence officers in the rank of Lieutenants and equivalent in Navy and Air Force, the officials explain that under the 5th CPC under the pay scale of Rs 8,250-10,500, they received a salary totalling Rs 15,252 as on December 31, 2005 . "On January 1, 2006 , from when the 6th CPC would be effective, a Lieutenant under the Pay Band-3 will receive an additional Grade Pay of Rs 5,400 and MSP of Rs 6,000, making his or her total emoluments Rs 27,000. As on September 1, 2008 , when the 6th CPC was implemented, a Lieutenant would get total emoluments of Rs 28, 947," the officials add. As against this, their civilian counterparts in the pay scale of Rs 8,000-13,500 under 5th CPC had received a pay of Rs 14,880.
Another argument put forth is: A Lt Colonel under the 5th CPC received a Gross Pay of Rs 28,086. But under the 6th CPC, he would receive a Grade Pay of Rs 7,600 and MSP of Rs 6,000 under Pay Band-3. His pay as on January 1, 2006 , would be Rs 41,690. From September 1, 2008 , when 6th CPC was implemented, Lt Colonel's emoluments stood at Rs 45,000.
With the Finance Ministry virtually rejecting their demands, the Armed Forces' chiefs rightly have asked that the issues raised by them should be addressed by the country's political leadership and not Anomalies Committee. "The CPC created disparities are not just pay anomalies, but core issues. Hence, these cannot be left to the Anomalies Committee. But the Cabinet must consider them and issue a corrigendum to the CPC notification," Navy chief Admiral Sureesh Mehta, in his capacity as the Chairman of the Chiefs of Staff Committee, insists.
Clearly, the issues such as "extant parities of pay" to Lieutenant Colonels and equivalent officers vis-Ã -vis their civilian and paramilitary counterparts, is not just related to the CPC, but could seriously jeopardise "operational" and "functional" harmony of the defence forces, whenever and wherever they worked alongside the civilian and paramilitary forces officers. .
Let us face the facts that the disparity "badly demoralise" the officers of the Armed Forces and if these persist, it could lead to "despondency" among the defence cadre. Admiral Mehta has even met Prime Minister Manmohan Singh to press for the removal of anomalies, explaining that it has serious implications of the command and control element during Unified Command Operations if not addressed. Singh is learnt to have promised that he will personally look into the issues raised.
Let us hope that the Cabinet Committee on Security removes these disparities so that the soldiers do not get demoralised and save the nation from a serious catastrophe. A demoralised force cannot save the sovereignty, security and integrity of the country.
Col (Dr) PK Vasudeva (Retd) -INFA
..
Sixth Pay Commission Summary and Highlights.
With so much discussion around the 6th Pay Commission report and implementation - I thought of sharing some highlights of the sixth CPC report and how it actually makes a difference to your monthly salaries and the taxes.
Most of the central government employees are very eager to know the new salary details and have been using the new Salary Calculator to compute their new salaries.
Other highlights of the Pay commission report and how the states and different sectors are interpreting and implementing
Big raise on cards for university teachers.
Judge’s Salary set to go up Three-Fold.
30-50% hike for Rajasthan state staff.
Orissa sets up panel to study Sixth Pay Commission report.
Rajasthan Govt to take up Pay Commission proposal next week.
Pondicherry to seek grants from Centre.
Madhya Pradesh Govt to implement Sixth Pay Commission from Sept 1.
Group `D` staff may not require to pay tax on Arrears.
Working Mothers get a well-deserved break.
How this Sixth Pay Commission change your take home salary and the taxes that you pay - read below
1. Full pension only after 20 years: You are entitled to full pension after completing 20 years of service. This offer is really attractive to those government employees who joined at an early age and now want to enter the private sector. Pension will act as a cushion after they give up the secure government job. The government has tried to attract young talent by incorporating this flexibility.
2. Gratuity limit enhanced: Gratuity cap has been raised to Rs 10.00 lakhs from the present Rs 3.5 lakhs – a cool jump of approximately 300 percent! Of course gratuity is a function of the service put in by the employee and the last salary drawn. But it will provide adequate relief to employees retiring in the near future in the context of the scorching inflation of over 12 percent ruling for sometime now. They can invest this lump sum in any bank and generate over 10 percent by way of interest. It is a double bonanza for those on the verge of becoming senior citizens.
3. Enhanced pension cap and floor limit: Government has raised the minimum pension of its employees from Rs 2,813/- to Rs 4,060/-. The upper ceiling has been raised to Rs 52,200/- from Rs 33,075/- at present. So the cap has been raised by a whopping 58 percent while the floor (minimum) has been raised by an impressive 44 percent. So employees in the higher salary bracket will benefit more when they retire.
4. Live long and enjoy more: A new and unique dimension has been added to the new pension scheme. If you remain healthy post-retirement and hence live longer, your pension will increase proportionately. So once you turn 80, your pension will rise by 20 percent; similarly if you turn 85, your pension will rise by 30 percent; each additional five years there from will entitle you to a rise of over 10 percent.
5. Arrears will not be taxed in the same year: Some confusion prevails with regard to computation of income tax in respect of arrears. Arrears would be released in two installments of 40 percent and 60 percent in two financial years, viz., 2008-09 and 2009-10. Earlier it was reported that even though the arrears would be released in two installments, the employee should reckon the arrears fully as income in financial year 2008-09.
It spoiled the employees’ party since most of the first installment of arrears released would have been gobbled up by the taxman this year. But the Finance Minister has reportedly clarified that only the arrears released this year, viz., 40 percent will be taxed.
6. Benefits enhanced if employees dies while on duty: Ex gratia paid to the family of an employee killed in terrorist attacks or attacks by anti-social elements has been enhanced to Rs 10.00 lakhs. The family will be paid Rs 15.00 lakhs by way of ex-gratia if the employee dies fighting a war or battling militants or working at high altitudes characterized by hostile weather.
..
Most of the central government employees are very eager to know the new salary details and have been using the new Salary Calculator to compute their new salaries.
Other highlights of the Pay commission report and how the states and different sectors are interpreting and implementing
Big raise on cards for university teachers.
Judge’s Salary set to go up Three-Fold.
30-50% hike for Rajasthan state staff.
Orissa sets up panel to study Sixth Pay Commission report.
Rajasthan Govt to take up Pay Commission proposal next week.
Pondicherry to seek grants from Centre.
Madhya Pradesh Govt to implement Sixth Pay Commission from Sept 1.
Group `D` staff may not require to pay tax on Arrears.
Working Mothers get a well-deserved break.
How this Sixth Pay Commission change your take home salary and the taxes that you pay - read below
1. Full pension only after 20 years: You are entitled to full pension after completing 20 years of service. This offer is really attractive to those government employees who joined at an early age and now want to enter the private sector. Pension will act as a cushion after they give up the secure government job. The government has tried to attract young talent by incorporating this flexibility.
2. Gratuity limit enhanced: Gratuity cap has been raised to Rs 10.00 lakhs from the present Rs 3.5 lakhs – a cool jump of approximately 300 percent! Of course gratuity is a function of the service put in by the employee and the last salary drawn. But it will provide adequate relief to employees retiring in the near future in the context of the scorching inflation of over 12 percent ruling for sometime now. They can invest this lump sum in any bank and generate over 10 percent by way of interest. It is a double bonanza for those on the verge of becoming senior citizens.
3. Enhanced pension cap and floor limit: Government has raised the minimum pension of its employees from Rs 2,813/- to Rs 4,060/-. The upper ceiling has been raised to Rs 52,200/- from Rs 33,075/- at present. So the cap has been raised by a whopping 58 percent while the floor (minimum) has been raised by an impressive 44 percent. So employees in the higher salary bracket will benefit more when they retire.
4. Live long and enjoy more: A new and unique dimension has been added to the new pension scheme. If you remain healthy post-retirement and hence live longer, your pension will increase proportionately. So once you turn 80, your pension will rise by 20 percent; similarly if you turn 85, your pension will rise by 30 percent; each additional five years there from will entitle you to a rise of over 10 percent.
5. Arrears will not be taxed in the same year: Some confusion prevails with regard to computation of income tax in respect of arrears. Arrears would be released in two installments of 40 percent and 60 percent in two financial years, viz., 2008-09 and 2009-10. Earlier it was reported that even though the arrears would be released in two installments, the employee should reckon the arrears fully as income in financial year 2008-09.
It spoiled the employees’ party since most of the first installment of arrears released would have been gobbled up by the taxman this year. But the Finance Minister has reportedly clarified that only the arrears released this year, viz., 40 percent will be taxed.
6. Benefits enhanced if employees dies while on duty: Ex gratia paid to the family of an employee killed in terrorist attacks or attacks by anti-social elements has been enhanced to Rs 10.00 lakhs. The family will be paid Rs 15.00 lakhs by way of ex-gratia if the employee dies fighting a war or battling militants or working at high altitudes characterized by hostile weather.
..
Tuesday, September 16, 2008
Government clears doubt on tax on pay arrears.
The lack of clarity over taxation of arrears that government employees will receive following the implementation of the 6th Pay Commission recommendations has finally cleared. The tax on first installment will be deducted in the current fiscal and that on the second installment will be deducted next year when they receive the actual payment. Confusion had arisen about the tax treatment of the pay arrears that central government employees are about to get as part of their latest wage revision.
According to finance ministry sources, only the first installment of the arrears would be taxed this fiscal. The taxation, they would be akin to the tax treatment in 1997 when the fifth pay commission recommendation was implemented wherein the tax was deducted at the time of payment. If the tax is deducted, employees who do not fall in the slab of 30% rate of income tax, would have to bear a surcharge, as their total income, including both installments would have been higher. As per the current income tax slab, income over Rs 2,50,000 attracts a tax rate of 30% and income above Rs 10,00,000 attracts a rate of 30% as also 10% surcharge.
The government had last month announced an average increase of 21% in the wages of its employees. It had decided to pay 40% arrears of their increased salaries this year and the rest next year to reduce the burden on the exchequer.
According to finance ministry sources, only the first installment of the arrears would be taxed this fiscal. The taxation, they would be akin to the tax treatment in 1997 when the fifth pay commission recommendation was implemented wherein the tax was deducted at the time of payment. If the tax is deducted, employees who do not fall in the slab of 30% rate of income tax, would have to bear a surcharge, as their total income, including both installments would have been higher. As per the current income tax slab, income over Rs 2,50,000 attracts a tax rate of 30% and income above Rs 10,00,000 attracts a rate of 30% as also 10% surcharge.
The government had last month announced an average increase of 21% in the wages of its employees. It had decided to pay 40% arrears of their increased salaries this year and the rest next year to reduce the burden on the exchequer.
States want Centre to bear 50 pc burden of pay revision.
The VAT panel wants the Union Government to bear at least half of the financial burden that the states will have to bear following the implementation of the Sixth Pay Commission recommendations."At least 50 per cent of the additional financial burden of the states as a result of the Centre's decision on the Sixth Central Pay Commission should be shared by the Central Government," Chairman of Empowered Committee of State Finance Ministers on VAT Asim Dasgupta told reporters here today.
The pay panel's recommendation on pay revision of the Central Government employees is to be implemented from the current month itself.Many states like Uttar Pradesh, Haryana, Chhattisgarh and Tamil Nadu have also decided to go for pay revision of their employees.
However, in case of special category and north-eastern states, the VAT panel asked the Centre to bear the entire additional burden of the pay revision.Dasgupta said another option was that financial burden was fully accommodated by the Thirteenth Finance Commission, while assessing expenditure needs of the states.
He stressed the Commission should work on modalities, which would provide a more justified relief to the states.Referring to the royalty on coal and other minerals, the VAT panel asked the Thirteenth Pay Commission to revise it frequently and wanted that the states were not denied their legitimate share on royalties on oil and power.
The pay panel's recommendation on pay revision of the Central Government employees is to be implemented from the current month itself.Many states like Uttar Pradesh, Haryana, Chhattisgarh and Tamil Nadu have also decided to go for pay revision of their employees.
However, in case of special category and north-eastern states, the VAT panel asked the Centre to bear the entire additional burden of the pay revision.Dasgupta said another option was that financial burden was fully accommodated by the Thirteenth Finance Commission, while assessing expenditure needs of the states.
He stressed the Commission should work on modalities, which would provide a more justified relief to the states.Referring to the royalty on coal and other minerals, the VAT panel asked the Thirteenth Pay Commission to revise it frequently and wanted that the states were not denied their legitimate share on royalties on oil and power.
Report from PTI
UGC pay panel delay likely to hit UPA’s election plans.
Much to the chagrin of the UPA government, the University Grants Commission’s pay review committee is unable to “estimate” how much more time it will require to finalise its recommendations. The committee headed by Professor G K Chadha was supposed to submit its report on September 5. The HRD ministry has given it a month’s extension, but professor Chadha is unwilling to commit himself to a public deadline. The UPA government would like to wrap up the pay review before elections are announced.
College and university teachers are an important electoral constituency and the government would rather give them the expected pay hike in time so that it can reap electoral dividends. However, the Chadha Committee does promise “radical” changes which will help the Indian higher education sector meet the socio-economic and cultural challenges in the era of globalisation, even as Professor Chadha is unwilling to commit a deadline. He says that the committee will take “no longer than is necessary”. One of the reasons, the chairman has cited for the delay is that the committee is yet to reach at a consensus on three or four issues. These include changes in the “layers” of the faculty at the college and university levels — the choice is to continue with the current gradation from lecturer to reader to professor or to introduce new levels. Professor Chadha said that should changes be introduced, suitable time scales will also have to be introduced.
Other unresolved issues include whether the UGC pay committee should replicate the central pay commission’s system for grade pay and pay bands, and the manner in which to resolve the anomalies of the previous committee’s — the Rastogi Committee — recommendations. Another area that the committee members feel needs more attention is the manner in which stagnation of college and university professors can be addressed. At present, it seen that often college professors achieve the top of their scale and then continue to remain there without any possibilities of advancement.
Former IISc director Professor G Padmanaban, who is member of the committee, said that there was a strong view within the panel that no teacher should suffer from stagnation. Now, the committee needs to work out a way to compensate these members of the teaching community, and to do so they will need to find parallels within the sixth pay commission’s recommendation. In light of the vast higher education expansion plans of the government, the committee has suggested a uniform retirement age of 65 years across the country. At present, there is a “great discrepancy” in the retirement age that ranges for 55 to 65 years. “We are in a situation when availability of teaching faculty is critical to the government’s plans.
This issue can be addressed to some measure through a retirement age that is uniformly set across the entire higher education system,” Professor Chadha said. Professor Chadha said that at the entry level the higher education sector is competing with the corporate sector and civil services for the best minds. “We need to offer an attractive package. While we can’t compete with the corporate sector it should be such that 10 years down the road, the academic has no regrets.” Stating that the choice was clear, Professor Chadha said, “We can’t give the red carpet welcome but we can provide a decent living condition”. The effort to attract the best minds to join the academic circuit will include “unprecedented financial support” and improved research facilities.
..
Monday, September 15, 2008
Professors, lecturers may get hefty pay hike after 6th Pay Commission
Professors and lecturers are all set to get hefty pay hike. Following the 6th Pay Commission implementation there was some disappointment among university and colleges teachers over the delay in implementation of the pay panel recommendation, but finally they too are set for substantial salary hikes.
If everything goes well university teachers will get approximately 30 percent pay hikes on the lines of the Sixth Pay Panel recommendations.
University grants commission had set up a committee under a former vice chancellor of prestigious JNU to recommend the pay revision needed in teaching fraternity in the universities.
The GK Chadha committee was under fire recently for not being able to submit its report on time, the same day when Sixth Pay Commission presented its report.
But Chadha committee has some good news for teachers besides pay raise. It has reportedly favoured raising of retirement age to 65, flexibility to accommodate talent through incentives, grant for working in remote and inaccessible areas and also emphasis on research.
Chadha while making the announcement said, “We will ask all states to invoke a uniform policy on the age of retirement and re-employment of teachers. The uniformity is essential to rid India’s higher education sector of inter-regional disparities”.Chadha went on to add, “We will focus at the entry level, on those just completing their academics and contemplating a life of teaching. We want to lure them into the profession.”He added, “We cannot offer the red-carpet treatment that the corporate sector can, but we plan to offer them better research facilities to keep them (faculty) in our universities.”
By KhabreinInfo Correspondent
..
If everything goes well university teachers will get approximately 30 percent pay hikes on the lines of the Sixth Pay Panel recommendations.
University grants commission had set up a committee under a former vice chancellor of prestigious JNU to recommend the pay revision needed in teaching fraternity in the universities.
The GK Chadha committee was under fire recently for not being able to submit its report on time, the same day when Sixth Pay Commission presented its report.
But Chadha committee has some good news for teachers besides pay raise. It has reportedly favoured raising of retirement age to 65, flexibility to accommodate talent through incentives, grant for working in remote and inaccessible areas and also emphasis on research.
Chadha while making the announcement said, “We will ask all states to invoke a uniform policy on the age of retirement and re-employment of teachers. The uniformity is essential to rid India’s higher education sector of inter-regional disparities”.Chadha went on to add, “We will focus at the entry level, on those just completing their academics and contemplating a life of teaching. We want to lure them into the profession.”He added, “We cannot offer the red-carpet treatment that the corporate sector can, but we plan to offer them better research facilities to keep them (faculty) in our universities.”
By KhabreinInfo Correspondent
..
Sunday, September 14, 2008
Remarks of Prof. G.K Chadha, Chairman UGC Pay Review Committee
Opening Remarks of Prof. G.K Chadha, Chairman UGC Pay Review Committee in the Press interaction on Status of the work of Pay Review Committee .
Let me welcome you all this afternoon to this press conference on behalf of the Pay Review Committee that, as you are well aware, has been constituted by the University Grants Commission to review the pay scales and other issues of service and working conditions of university and college teachers in the country.
I wish to share with you and through you with my lakhs of university and college teacher colleagues spread in various parts of the country—some really remote and far flung— the progress of the functioning of the Pay Review Committee, particularly the range of issues on which the Committee has been dilating with a view to giving the teachers a very ‘decent deal’.
As you are aware, the Pay Review Committee was appointed in the larger context of the VI Central Pay Commission appointed by the Government of India for recommending the revised scales of pay for central government employees.
Now that the recommendations of the VI Central Pay Commission have finally been accepted and notified by the Government of India, the concern of the university and college teachers about the recommendation of our Pay Review Committee and their implementation is quite understandable and the Pay Review Committee is quite conscious of this concern.
The Pay Review Committee, however, also knows that it is only on August 29th and 30th, 2008 that is only about two weeks ago that the final recommendations of the VI Central Pay Commission as accepted by the Government of India became available. A large number of recommendations of Pay Review Committee, particularly those in relation to the revision of scales of pay and pension and other terminal benefits being dependent on those recommendations could not have been discussed and firmed up meaningfully before this.
The terms of Reference of our Pay Review Committee, thanks to the farsight of the University Grants Commission, for which the entire Pay Review Committee compliments the UGC, cover practically every single aspect of teachers service and working conditions ranging from pay and allowances to recruitment policy, opportunities for career advancement, availability of infrastructure and related facilities for teaching and research in university and colleges, special needs of women teachers and there work in rural and remote areas. Various kinds of leave facilities admissible to teachers, their academic accountability and the age of retirement and terminal benefits like pension, provident fund and gratuity.
In addition, the Pay Review Committee has also been asked to, look into the anomalies arising out of the implementation of the last Pay Review Committee and suggest redressal for these.
To identify these issues which related to over 200 universities and over 6000 colleges affiliated to the University Grants Commission was in itself a gigantic task and for this, the Pay Review Committee decided to use a multi pronged methodology that involved interacting with various stakeholders like the Professors, Readers, lecturers—particularly those who have been appointed recently—in both universities and colleges, the Directors of Physical Education, Librarians, Vice Chancellors and various teachers’ Associations and Federations. Also consulted were Eminent Educationists, Public Persons, Ministers of Education in various states and Educations Secretaries and Directors of Public Instruction.
Also, special questionnaires were devised—one for universities and another for colleges—which were sent to over 200 universities and 6000 colleges for eliciting information regarding diverse issues and the those general conditions relating to higher education that has a direct bearing on teachers’ service and working conditions.
The Pay Review Committee has also received nearly five hundred representations and memoranda from individuals, institutions and teachers’ associations and federations which too have been scrutinized carefully to know about the concerns and aspirations of the teaching community in universities and colleges.
Having done this—which as you can appreciate was a formidable task in itself—the Pay Review Committee has held a series of meetings—some lasting over several days-to discuss and arrive at a consensus about various issues. In fact, we have just finished one such significant meeting that started yesterday morning and I am glad to share with you the fact that the members of the Pay Review Committee present here with me this afternoon have arrived at significant decision about these issues that can be divided into the following broad categories:
Revised structure of Pay and allowances for various categories of teachers, D.P.Es and Librarians
Pension and other related benefits for social security of teachers, including the age of retirement and reemployment of teachers.
The quantum of Central government financial assistance to states for implementing these recommendations of the Pay Review Committee
A uniform date and manner of implementation of the recommendations throughout the country Recruitment policy and eligibility conditions for various categories of teachers and Principals of colleges.
Opportunities for promotion under Career Advancement Scheme of both university and college teachers.
Infrastructure and other support facilities for improving the quality of teaching and research.
Teaching work load and academic accountability of teachers.
Residual anomalies from the last Pay Review Committee and their redressal.
Each of these broad categories and many more issues were further subdivided into more focussed issues, including some of which are entirely new and innovative and are being considered for the first time to attract and retain talent in the field of higher education. Again these range from a better financial package to providing better academic environment for teaching and research.
1. Pay and Allowances
These include, among others--
(a) The possibilities of granting some additional incentives at the entry level, some kind of academic allowance or allowance for working in remote and inaccessible areas, etc.
(b) Questions relating to pay fixation and stagnation
2. Pension and other related benefits…
These include, among others—
(a) the question of invoking a uniform policy about the age of retirement and reemployment of teachers, to rid India’s higher education sector of the existing unhealthy inter regional disparities in this regard.
(b) Exploring the possibility of extending benefits like medical and general group insurance to all university and college teachers.
3. The Quantum of financial assistance…
These include the most crucial questions, among others—
a. How much assistance should the central government extend to states for a smooth implementation of the recommendations of the Pay Review Committee.
b. The period for which such assistance needs to be extended to the states.
c. Incentives that could be given to states for successful implementation of the entire package of recommendations of the Pay Review Committee.
4. The Date and manner of implementation…
The issues under this broad category include, among others---
(a) 01-01-2006 to be the date from which the recommendations of the Pay Review Committee should be implemented throughout the country.
(b) The manner in which it should be implemented so that benefits can be derived uniformally by all teachers without inter regional or inter- institutional deviations.
5. Recruitment policy…
The issues include, among others,
a) How to extend better financial and otherincentives to attract and retain better talent in the field of teaching in higher education, particularly at the entry level.
b) How new categories of teaching position need to be created to make the profession of teaching more attractive.
c) How and means can be devised to give a better financial deal to those who are working as contract teachers and guest faculty.
6. Opportunities for Career Advancement of teachers in both universities and colleges…
This is one of the most crucial issues before the Pay Review Committee. It includes, among others,
a) The manner in which the CAS can be made more teacher friendly especially in terms of creating more opportunities. The need for a third promotion for college teachers is engaging our attention in particular.
b) To look into the present conditions of eligibility and selection processes and suggest ways and means of making it more expeditions.
7. Infrastructure and other facilities…
This category of issues includes, among others,
a) examining the existing infrastructure and support facilities for teaching and research, particularly in colleges and recommendations for their upgradation.
b) To explore ways and means for providing some seed money to teachers both in universities and colleges for promoting research.
8. Teaching workload...
a) The issue of workload and academic accountability of teachers includes whether the classroom teaching load of teachers needs to be revisited
b) What kind of criteria need to be evolved for effective, transparent assessment of teachers’ work.
9. Anomalies from the previous…
One of the most challenging tasks before the Pay Review Committee has been to look at the anomalies of the previous Pay Review Committee and suggest redressal for some of most glaring ones. The total number of issues –some of them most crucial for the future of higher education and economic development of India –runs into no fewer than 100 odd issues. I am glad to say that a consensus on all issues has been reached in a series of meetings, including those held yesterday and today.
I can only say with utmost sincerity that the recommendations would give my fellow teachers more than what any rational thinker would call ‘a very decent’ deal.
This committee has deliberated on issues connected with higher education in a socio-economic and cultural milieu qualitatively so much different from what it was a decade ago, particularly in view of the demands of new global challenges in the higher education sector especially at the level of college education. It needs to be asserted that at the present juncture we have to think the best for the teaching profession vis-Ã -vis corporate sector and civil services. The committee is fully conscious of the criticality of time for the report to reach its final destination. That is why we have been working very hard to ensure that what is due to the teaching committee as a result of pay scales and improved working conditions should not come to them even a day later.
Let me welcome you all this afternoon to this press conference on behalf of the Pay Review Committee that, as you are well aware, has been constituted by the University Grants Commission to review the pay scales and other issues of service and working conditions of university and college teachers in the country.
I wish to share with you and through you with my lakhs of university and college teacher colleagues spread in various parts of the country—some really remote and far flung— the progress of the functioning of the Pay Review Committee, particularly the range of issues on which the Committee has been dilating with a view to giving the teachers a very ‘decent deal’.
As you are aware, the Pay Review Committee was appointed in the larger context of the VI Central Pay Commission appointed by the Government of India for recommending the revised scales of pay for central government employees.
Now that the recommendations of the VI Central Pay Commission have finally been accepted and notified by the Government of India, the concern of the university and college teachers about the recommendation of our Pay Review Committee and their implementation is quite understandable and the Pay Review Committee is quite conscious of this concern.
The Pay Review Committee, however, also knows that it is only on August 29th and 30th, 2008 that is only about two weeks ago that the final recommendations of the VI Central Pay Commission as accepted by the Government of India became available. A large number of recommendations of Pay Review Committee, particularly those in relation to the revision of scales of pay and pension and other terminal benefits being dependent on those recommendations could not have been discussed and firmed up meaningfully before this.
The terms of Reference of our Pay Review Committee, thanks to the farsight of the University Grants Commission, for which the entire Pay Review Committee compliments the UGC, cover practically every single aspect of teachers service and working conditions ranging from pay and allowances to recruitment policy, opportunities for career advancement, availability of infrastructure and related facilities for teaching and research in university and colleges, special needs of women teachers and there work in rural and remote areas. Various kinds of leave facilities admissible to teachers, their academic accountability and the age of retirement and terminal benefits like pension, provident fund and gratuity.
In addition, the Pay Review Committee has also been asked to, look into the anomalies arising out of the implementation of the last Pay Review Committee and suggest redressal for these.
To identify these issues which related to over 200 universities and over 6000 colleges affiliated to the University Grants Commission was in itself a gigantic task and for this, the Pay Review Committee decided to use a multi pronged methodology that involved interacting with various stakeholders like the Professors, Readers, lecturers—particularly those who have been appointed recently—in both universities and colleges, the Directors of Physical Education, Librarians, Vice Chancellors and various teachers’ Associations and Federations. Also consulted were Eminent Educationists, Public Persons, Ministers of Education in various states and Educations Secretaries and Directors of Public Instruction.
Also, special questionnaires were devised—one for universities and another for colleges—which were sent to over 200 universities and 6000 colleges for eliciting information regarding diverse issues and the those general conditions relating to higher education that has a direct bearing on teachers’ service and working conditions.
The Pay Review Committee has also received nearly five hundred representations and memoranda from individuals, institutions and teachers’ associations and federations which too have been scrutinized carefully to know about the concerns and aspirations of the teaching community in universities and colleges.
Having done this—which as you can appreciate was a formidable task in itself—the Pay Review Committee has held a series of meetings—some lasting over several days-to discuss and arrive at a consensus about various issues. In fact, we have just finished one such significant meeting that started yesterday morning and I am glad to share with you the fact that the members of the Pay Review Committee present here with me this afternoon have arrived at significant decision about these issues that can be divided into the following broad categories:
Revised structure of Pay and allowances for various categories of teachers, D.P.Es and Librarians
Pension and other related benefits for social security of teachers, including the age of retirement and reemployment of teachers.
The quantum of Central government financial assistance to states for implementing these recommendations of the Pay Review Committee
A uniform date and manner of implementation of the recommendations throughout the country Recruitment policy and eligibility conditions for various categories of teachers and Principals of colleges.
Opportunities for promotion under Career Advancement Scheme of both university and college teachers.
Infrastructure and other support facilities for improving the quality of teaching and research.
Teaching work load and academic accountability of teachers.
Residual anomalies from the last Pay Review Committee and their redressal.
Each of these broad categories and many more issues were further subdivided into more focussed issues, including some of which are entirely new and innovative and are being considered for the first time to attract and retain talent in the field of higher education. Again these range from a better financial package to providing better academic environment for teaching and research.
1. Pay and Allowances
These include, among others--
(a) The possibilities of granting some additional incentives at the entry level, some kind of academic allowance or allowance for working in remote and inaccessible areas, etc.
(b) Questions relating to pay fixation and stagnation
2. Pension and other related benefits…
These include, among others—
(a) the question of invoking a uniform policy about the age of retirement and reemployment of teachers, to rid India’s higher education sector of the existing unhealthy inter regional disparities in this regard.
(b) Exploring the possibility of extending benefits like medical and general group insurance to all university and college teachers.
3. The Quantum of financial assistance…
These include the most crucial questions, among others—
a. How much assistance should the central government extend to states for a smooth implementation of the recommendations of the Pay Review Committee.
b. The period for which such assistance needs to be extended to the states.
c. Incentives that could be given to states for successful implementation of the entire package of recommendations of the Pay Review Committee.
4. The Date and manner of implementation…
The issues under this broad category include, among others---
(a) 01-01-2006 to be the date from which the recommendations of the Pay Review Committee should be implemented throughout the country.
(b) The manner in which it should be implemented so that benefits can be derived uniformally by all teachers without inter regional or inter- institutional deviations.
5. Recruitment policy…
The issues include, among others,
a) How to extend better financial and otherincentives to attract and retain better talent in the field of teaching in higher education, particularly at the entry level.
b) How new categories of teaching position need to be created to make the profession of teaching more attractive.
c) How and means can be devised to give a better financial deal to those who are working as contract teachers and guest faculty.
6. Opportunities for Career Advancement of teachers in both universities and colleges…
This is one of the most crucial issues before the Pay Review Committee. It includes, among others,
a) The manner in which the CAS can be made more teacher friendly especially in terms of creating more opportunities. The need for a third promotion for college teachers is engaging our attention in particular.
b) To look into the present conditions of eligibility and selection processes and suggest ways and means of making it more expeditions.
7. Infrastructure and other facilities…
This category of issues includes, among others,
a) examining the existing infrastructure and support facilities for teaching and research, particularly in colleges and recommendations for their upgradation.
b) To explore ways and means for providing some seed money to teachers both in universities and colleges for promoting research.
8. Teaching workload...
a) The issue of workload and academic accountability of teachers includes whether the classroom teaching load of teachers needs to be revisited
b) What kind of criteria need to be evolved for effective, transparent assessment of teachers’ work.
9. Anomalies from the previous…
One of the most challenging tasks before the Pay Review Committee has been to look at the anomalies of the previous Pay Review Committee and suggest redressal for some of most glaring ones. The total number of issues –some of them most crucial for the future of higher education and economic development of India –runs into no fewer than 100 odd issues. I am glad to say that a consensus on all issues has been reached in a series of meetings, including those held yesterday and today.
I can only say with utmost sincerity that the recommendations would give my fellow teachers more than what any rational thinker would call ‘a very decent’ deal.
This committee has deliberated on issues connected with higher education in a socio-economic and cultural milieu qualitatively so much different from what it was a decade ago, particularly in view of the demands of new global challenges in the higher education sector especially at the level of college education. It needs to be asserted that at the present juncture we have to think the best for the teaching profession vis-Ã -vis corporate sector and civil services. The committee is fully conscious of the criticality of time for the report to reach its final destination. That is why we have been working very hard to ensure that what is due to the teaching committee as a result of pay scales and improved working conditions should not come to them even a day later.
Saturday, September 13, 2008
Jharkhand govt. to implement 6th Pay Commission in the state.
There is good news for state government employees in Jharkhand as state government has decided to implement 6t Pay commission in the state.The decision by cabinet in Jharkhand comes on the heel of several other states deciding to implement the 6th Pay Commission recommendations in those states.
The union government last month had decided to accept the 6th pay Panel recommendations.It also issued notification on 30th August last month regarding the implementation of the pay panel recommendations.
But unlike central government Jharkhand government will not implement the 6th pay panel report from 1st January 2006. The Jharkhand government will implement the pay panel recommendations from April last year.P.K. Jajoria, secretary of the cabinet coordination committee of the state said, “The state government will implement the recommendations of the Pay Commission from April 2007”.He went on to add, “By implementing the recommendations, the state will bear additional financial burden of Rs.17.70 billion per annum. The state will also bear burden of Rs.19.58 billion to pay arrears to the employees.”Unlike the union government, Jharkhand government will pay 60 percent of arrears in the current financial year and remaining 40 percent in 2009-2010.
Uttar Pradesh chief minister has also announced to implement the sixth pay commission recommendations. She has also formed a committee to look into the issue of implementation of the report.
The union government last month had decided to accept the 6th pay Panel recommendations.It also issued notification on 30th August last month regarding the implementation of the pay panel recommendations.
But unlike central government Jharkhand government will not implement the 6th pay panel report from 1st January 2006. The Jharkhand government will implement the pay panel recommendations from April last year.P.K. Jajoria, secretary of the cabinet coordination committee of the state said, “The state government will implement the recommendations of the Pay Commission from April 2007”.He went on to add, “By implementing the recommendations, the state will bear additional financial burden of Rs.17.70 billion per annum. The state will also bear burden of Rs.19.58 billion to pay arrears to the employees.”Unlike the union government, Jharkhand government will pay 60 percent of arrears in the current financial year and remaining 40 percent in 2009-2010.
Uttar Pradesh chief minister has also announced to implement the sixth pay commission recommendations. She has also formed a committee to look into the issue of implementation of the report.
NMC appeals Gov to implement 6th pay commission in J&K .
A prominent employees' association has asked Jammu and Kashmir Governor N N Vohra to implement recommendations of the Sixth Pay Commission in the state so as to mitigate the problems of employees and pensioners.
"We hope that the Governor will take steps in implementing recommendations of the commission at the earliest to meet the genuine demands of state government employees and pensioners," President of National Mazdoor Conference (NMC), Subash Shastri, said while addressing a meeting of NMC workers here yesterday.
Shastri also expressed solidarity with daily wage earners working in various government departments and sought regularisation of their jobs besides enhancement of wage rate from Rs 70 to Rs 150. Meanwhile, Jammu and Kashmir Awami Congress (JKAC) has also asked the state government to implement the Sixth Pay Commission recommendations to mitigate the suffering of the state government employees.
JKAC projected this demand through a memorandum submitted to the Divisional Commissioner here, according to the President of the party, Sat Pal Sharma.
Bureau Report
"We hope that the Governor will take steps in implementing recommendations of the commission at the earliest to meet the genuine demands of state government employees and pensioners," President of National Mazdoor Conference (NMC), Subash Shastri, said while addressing a meeting of NMC workers here yesterday.
Shastri also expressed solidarity with daily wage earners working in various government departments and sought regularisation of their jobs besides enhancement of wage rate from Rs 70 to Rs 150. Meanwhile, Jammu and Kashmir Awami Congress (JKAC) has also asked the state government to implement the Sixth Pay Commission recommendations to mitigate the suffering of the state government employees.
JKAC projected this demand through a memorandum submitted to the Divisional Commissioner here, according to the President of the party, Sat Pal Sharma.
Bureau Report
Friday, September 12, 2008
Judges set for a hefty pay hikes following Sixth Pay Commission
Judges are set for a hefty pay hikes if all goes well. Sixth Pay Commission seems to have opened the floodgates of pay rise in every sector. Thy are set to get pay hikes in proximity of around 300 percent.
It was only two days ago when the union government had decided to raise the salaries of President, Vice President and governor by around three hundred percent.Presdient Patil who used to get Rs 50000 as monthly salary will take away a monthly salary of Rs 150000.Central government employees’ much touted pay hike will pale in the eyes of the pay increment given to president, vice president and governors. Now judges across the board will also get hefty pay rise if Parliament approves the recommendations of the three member committee of Supreme Court of India that was constituted by the Chief Justice of India.If the recommendations of the committee are approved and set to look to be approved, Chef Justice of India’s monthly salary with go up from Rs 33,000 to Rs 1.10 lakh while that of other Supreme Court judges-judges and CJs of High Courts will increase to Rs 1 lakh from the present 30,000. Sitting judges of the HCs will get Rs 90,000 as against the present Rs 26,000.
It was only two days ago when the union government had decided to raise the salaries of President, Vice President and governor by around three hundred percent.Presdient Patil who used to get Rs 50000 as monthly salary will take away a monthly salary of Rs 150000.Central government employees’ much touted pay hike will pale in the eyes of the pay increment given to president, vice president and governors. Now judges across the board will also get hefty pay rise if Parliament approves the recommendations of the three member committee of Supreme Court of India that was constituted by the Chief Justice of India.If the recommendations of the committee are approved and set to look to be approved, Chef Justice of India’s monthly salary with go up from Rs 33,000 to Rs 1.10 lakh while that of other Supreme Court judges-judges and CJs of High Courts will increase to Rs 1 lakh from the present 30,000. Sitting judges of the HCs will get Rs 90,000 as against the present Rs 26,000.
Thursday, September 11, 2008
New Updates of Gazette Notification on 6th Pay Commission by Ministry of Railway.
New updates of Gazetted Notification on 6th Pay Commission by Railway Ministry.
Please click below to download.
Fixation of pay for Running staff.
(12-09-08)
Railway Services (Revised Pay) Rules, 2008.
(11-09-2008)
Decision of Government relating to grant of D A to Railway Servants.
(08-09-2008)
Revision of pension of pre-2006 pensioners/family pensioners. (RBE.105/2008)
(08-09-2008)
Revision of pension of pre-2006 pensioners/family pensioners. (RBE.105/2008)
(01-09-2008)
Gazette Notification on 6th Pay Commission in Hindi.
(04-09-2008)
Gazette Notification on 6th Pay Commission in English.
(04-09-2008)
Please click below to download.
Fixation of pay for Running staff.
(12-09-08)
Railway Services (Revised Pay) Rules, 2008.
(11-09-2008)
Decision of Government relating to grant of D A to Railway Servants.
(08-09-2008)
Revision of pension of pre-2006 pensioners/family pensioners. (RBE.105/2008)
(08-09-2008)
Revision of pension of pre-2006 pensioners/family pensioners. (RBE.105/2008)
(01-09-2008)
Gazette Notification on 6th Pay Commission in Hindi.
(04-09-2008)
Gazette Notification on 6th Pay Commission in English.
(04-09-2008)
Wednesday, September 10, 2008
New Pay and Pension Arrears Calculators
New Pay and Arrears Calculators based on orders issued by Govt for implementation of Six Pay Commission report.
Click here for New Pay and Arrears Calculator
Pension and arrear based on orders issued by Govt for implementation of Six Pay Commission report.
Click here for New Pension and Arrears Calculator
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Click here for New Pay and Arrears Calculator
Pension and arrear based on orders issued by Govt for implementation of Six Pay Commission report.
Click here for New Pension and Arrears Calculator
Don,t forget to send your comment.
Saturday, September 6, 2008
INDIA - The Land of Netas ( Ministers )
Parliament takes 5 minutes to HIKE the Salary of MP. But to hike the salary of employee after 10 years gap... Six Pay Commission took 18 months to calculate wrong fitman formula of 1.74. Review committee took 5 months to correct it to 1.86. And now Ministry of Railways took 7 days to just change the word "Government Servant" from the original notification to "Railway Servant". MERA BHARAT MAHAN
6th Pay Commission Gazette Notification of Ministry of Railway
Ministry of Railway has announced Gazette Notification on 6th Pay Commission
Download Gazette Notification on 6th Pay Commission in Hindi
Download Gazette Notification on 6th Pay Commission in English
Download Gazette Notification on 6th Pay Commission in Hindi
Download Gazette Notification on 6th Pay Commission in English
Friday, September 5, 2008
Latest Calculator for Pay Fixation and arrear Calculator
Here is latest Calculator for Pay Fixation and Arrear. There are some errors, You can try this and send comment for correction.
Click here to download
Click here to download
Tuesday, September 2, 2008
Special Duty Allowance ( SDA )for the North East including Sikkim and Ladakh
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, the 29th August, 2008.
OFFICE MEMORANDUM
Subject:-Special (Duty) Allowance for Civilian Employees of the CentralGovernment serving inthe NorthEastern Region (includingSikkim) and Ladakh -
Recommendationsof Sixth Central Pay Commission.
The undersigned is directed to state that certain allowances and special facilities have been granted toCentral Govt. employees including officers of the All India Services, serving in the North Eastern Region States(including Sikkim) and Union Territories of A&N and Lakshadweep group of Islands.2. Special (Duty) Allowance is admissible in North Eastern Region @ 12.5% of the basic pay as prescribedin Para 2(iii) of this Ministry's O.M. No.11(2)/97-E.II(B),dated 22.7.1998 as amended from time to time, to thoseemployees who are posted from outside the region having `All India Transfer Liability'. In partial modification ofO.M. dated 22.7.1998, and O.M.No.I1 (5)/97-E.II (B), dated 29.5.2002, on the recommendations of Sixth CentralPay Commission, the President is now pleased to decide that this allowance shall be admissible to the Centralgovernment employees @ 12.5% of (the revised Basic Pay + NPA where applicable) irrespective of whether thetransfer( including on initial appointment) is from outside the North Eastern Region or from another area of thatregion. The existing condition that employees should have All India Transfer Liability has also been dispensedwith.
Ministry of Finance
Department of Expenditure
New Delhi, the 29th August, 2008.
OFFICE MEMORANDUM
Subject:-Special (Duty) Allowance for Civilian Employees of the CentralGovernment serving inthe NorthEastern Region (includingSikkim) and Ladakh -
Recommendationsof Sixth Central Pay Commission.
The undersigned is directed to state that certain allowances and special facilities have been granted toCentral Govt. employees including officers of the All India Services, serving in the North Eastern Region States(including Sikkim) and Union Territories of A&N and Lakshadweep group of Islands.2. Special (Duty) Allowance is admissible in North Eastern Region @ 12.5% of the basic pay as prescribedin Para 2(iii) of this Ministry's O.M. No.11(2)/97-E.II(B),dated 22.7.1998 as amended from time to time, to thoseemployees who are posted from outside the region having `All India Transfer Liability'. In partial modification ofO.M. dated 22.7.1998, and O.M.No.I1 (5)/97-E.II (B), dated 29.5.2002, on the recommendations of Sixth CentralPay Commission, the President is now pleased to decide that this allowance shall be admissible to the Centralgovernment employees @ 12.5% of (the revised Basic Pay + NPA where applicable) irrespective of whether thetransfer( including on initial appointment) is from outside the North Eastern Region or from another area of thatregion. The existing condition that employees should have All India Transfer Liability has also been dispensedwith.
New Revised Rates - Dearness Allowance
New rates of DA has been announced as :-
From 1-1-2006 : No Dearness Allowance
From 1-7-2006 : 2% of Basic Pay and NPA, where applicable
From 1-1-2007 : 6% of Basic Pay and NPA, where applicable
From 1-7-2007 : 9% of Basic Pay and NPA, where applicable
From 1-1-2008 : 12% of Basic Pay and NPA, where applicable
From 1-7-2008 : 16% of Basic Pay and NPA, where applicable
From 1-1-2006 : No Dearness Allowance
From 1-7-2006 : 2% of Basic Pay and NPA, where applicable
From 1-1-2007 : 6% of Basic Pay and NPA, where applicable
From 1-7-2007 : 9% of Basic Pay and NPA, where applicable
From 1-1-2008 : 12% of Basic Pay and NPA, where applicable
From 1-7-2008 : 16% of Basic Pay and NPA, where applicable
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