Pay Panel for hefty hike in salary wef Jan ’06

The revised pays fixed the salary of Cabinet Secretary at Rs 90,000 a month and Secretary at Rs 80,000 per month, while making Rs 6,660 as the minimum entry level salary.

Recommending a substantial increase in allowances and other benefits, the Commission also suggested a 40 per cent increase in pension and family pension.

The bonanza to employees would take effect once the Cabinet considers the recommendations of the Sixth Pay Commission that was set up in 2006.

While the Finance Minister did not announce any provision in the Budget for the increased wage bill in 2008-09, he had maintained that there was enough head-room to meet the additional expenditure.

Recommending a 40 per cent hike for fitment in pre-revised basic pay, the report said: “The Commission is recommending a new structure of running pay bands and grade pay. In the structure, grade pay has been normally taken as 40 per cent of the maximum of the pre-revised pay scales.”

“I have recommended something which is good for the nation”, Justice Srikrishna told reporters after submitting the report to the Finance Minister.

The panel recommended the annual increment of pay at the rate of two-and-half per cent and the date for it as July 1.

Seeking a substantial hike in different allowances, the Commission recommended payment of arrears in two installments and said that out of the total one-time expenditure of Rs 18,060 crore, as much as Rs 12,642 crore will have to be borne in the union budget and the balance of Rs 5,418 crore in the Railway budget.

Recognising the hardships faced by the defence personnel, the panel put the military services’ pay on par with those recommended for civilians, while suggesting an allowance of Rs 6,000 per month for officers till the rank of Brigadier and equivalent.

“A scheme of PRIS (performance related incentive scheme) has been recommended… PRIS should also work as a substitute for bonus, honorarium and overtime allowances,” the report said.

Following are the highlights of the Sixth Pay Commission’s recommendations submitted to the government on Monday.

* Pay substantially hiked by an average 40%

* Revised pay to be effective from Jan 1, 2006

* To cost exchequer Rs 12,561 cr in 2008-09

* Additional one-time burden of Rs 18,060 cr toward arrears

* Minimum entry level pay Rs 6,660; Cab Sec to get Rs 90,000

* Mkt driven compensation for young scientists & special posts

* Contract appointment for select posts requiring high skills

* Current age of 60 for superannuation to be maintained

* No exceptions barring scientists & medical specialists

* Number of grades reduced to 20 against prevailing 35

* Existing parity between IAS and IFS to be maintained

* Defence forces at par with civilians in pay and grades

* Rs 6,000 allowance a month for officers up to brigadier rank

* 5-day work week to continue; Only 3 national holidays allowed

* Other gazetted holiday to go, adjusted in restricted holiday* High performers to get 3.5% increment against normal 2.5%

* Enhanced pay scales for nurses, teachers and constabulary

* Existing rates of most of the allowances to be doubled

* Education allowance reimbursement at Rs 1,000 per child a month against Rs 50 now

* Hostel subsidy to be increased 10 times to Rs 3,000

* Person stagnating at maximum of any pay band for more than a year to be placed in immediate next higher pay band without change in grade

* Performance linked incentive scheme to be introduced

* All fixed allowances to be made inflation proof

* All recommendations to be treated as an ‘organic whole’ as partial implementation will bring in several anomalies and inconsistencies.