Govt notifies sixth Pay Panel report

Over 50 lakh government employees, including the armed forces personnel, will be receiving an enhanced pay packet beginning September 1, with the government today notifying the revised recommendations of the Sixth Central Pay Commission (CPC).

The much-awaited CPC proposals had received a seal of approval from the union cabinet a fortnight ago after it amended certain recommendations of the Justice Sri Krishna-led Pay Commission that submitted its report to the government on March 24 this year.

The CPC recommendations and the subsequent government decision with regard to revised scales of pay and dearness allowance for civilian employees of the central government would be made retrospectively effective from January 1, 2006, the notification said.

However, the revised allowances, other than dearness allowance, would be effective only from September 1 this year. On payment of arrears, the government has modified to the extent that the arrears would be paid in cash in two installments - first installment of 40 per cent this financial year (2008-09) and the remaining 60 per cent in the next financial year (2009-10).
The government has approved the setting up of a committee to examine individual, post-specific and cadre-specific anomalies. The committee should try to complete the work in one year, the notification said.

Providing for post-notification changes in the CPC report, the government said "the department specific recommendations" will be processed by concerned departments and ministries and approval of the government obtained in consultations with the Finance Ministry or Department of Personnel and Training.
This decision, the notificaion said, was taken keeping in view the allowances granted to defence forces personnel in such or similar areas and other allwances granted to central paramilitary forces.

However, the government did away with the provision of Suraksha Sahayaks to central paramilitary forces officers with effect from a date to be fixed later.

"Meanwhile, absolutely necessary posts may be created on the basis of functional justification. The decision will also apply to similarly placed categories in other departments," the notification said.

The government has improved Pay Bands 1, 2 and 4, as recommended by the CPC, and modified it. While Pay Band-1 of Rs 4,800-20,200 has been modified to Rs 5,200-20,200 and Pay Band-2 from Rs 8,700-34,800 to Rs 9,300-34,800, the government improved Pay Band-4 from Rs 39,200-67,000 to Rs 37,400-67,000.

A new pay scale of Rs 75,500 (annual increment of 3 per cent)-80,000 designated as 'HAG+' will be carved out of Pay Band-4.

With regard to fixation of pay in revised pay bands, the basic pay drawn as on January 1, 2006 on the existing 5th CPC, pay scale 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 pay band. Grade Pay, as approved by the government corresponding to the pre-revised pay scale will be then added to the Pay in the revised Pay Band. The total of pay in the pay band and grade pay will be the revised pay as on January 1, 2006," the notification said.

"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.
Source : The Economic Times