SIXTH PAY COMMISSION AT A GLANCE

Date of implementation: Revised pay scales to implemented retrospectively from January 1, 2006. Allowances to be paid prospectively.

Running Pay Bands :Introduction of four distinct running pay bands- one running band each for all categories of employees in groups ‘B’ and ‘C’ and 2 running pay bands for Group A posts. Every post have a distinct grade pay attached to it. Grade pay is fixed amount attached to each post in the hierarchy. The total number of grades reduced to 20 spread across four distinct running pay bands against 35 existing scales. At the time of promotion, Grade Pay to be changed with additional increase of one increment. Persons stagnating for more than one year in a pay band shall be placed in next higher pay band without any change in Grade pay.

Group’D’ employees: No further recruitment of Gr.’D’ employees. All Gr’D’ employees to be placed in Gr’C’ scale of PB-1 straightway or after training. Group’D’ jobs to be carried out through persons on contract.

Formula for Basic on 1st Jan 2006: Basic on 1-1-2006 in old scale + 86% of this Basic + Grade Pay as attached to each post

Annual increment: 2.5%of total of pay in the Pay Band plus grade pay. Provision of higher increment of 3.5% to maximum 20% of employees in Pay Band-3, depending on performance.

Date of annual increments: In all cases, to be first of July. Eligibility is six months and above in the scale as on July 1.

HRA: 30% for A-1, 20% for A, B-1 & B-2 and 10% for C/Unclassified cities.

CCA and Transport Allowance: CCA to be subsumed in Transport Allowance and the rates of this allowance to be increased by 4 times. Transport Allowance to be increased every year on the basis of the increase in the dearness allowance.

Dearness allowance Base year of the Consumer Price Index (CPI) to be revised as frequently as feasible. Formulation of a separate index for Government employees suggested. Till revision CPI with base 2001 to be used for calculation of DA.

GPF: Investment to be voluntary. No minimum prescribed for employees covered under CCS (pension) 1972 rules.

PRIS: Introduction of Budget neutral Performance related scheme (PRIS). Employee to be eligible for pecuniary remuneration over and above Pay. PRIS to replace Ad-hoc Bonus and PLB.

Other allowances: Existing rates of most of the allowances to be doubled both in case of Defence Forces as well as civilian employees. Travel entitlements to be paid on actual. Rates of Education allowance reimbursement to be raised from existing Rs.50 to Rs.1000 per child per month, subject to the maximum of two children. Hostel subsidy to be raised from existing Rs.300 p.m. to Rs.3000 p.m. Risk allowance to be replaced by risk insurance. All the fixed allowances made inflation proof with provisions of automatic revision whenever dearness allowance payable on revised pay bands goes up by 50%.

Medical facilities A new medical insurance scheme. The scheme to be optional for existing Central Government employees and pensioners but compulsory for new Government employees and pensioners.

Pension : (1). Pension to be paid at 50% of the average emoluments/last pay drawn (whichever is more beneficial) after qualifying service of 20 years without linking it to 33 years for grant of full pension. (2). Rates of Constant Attendant Allowance to be increased by five times to Rs.3000 p.m. (3). Fitment formula recommended for serving employees to be extended in case of existing pensioners/family pensioners. (4) Higher rates of pension for retirees and family pensioners on attaining the age of 80, 85, 90, 95 and 100 years. (5). Revision of the commutation table for commutation of pension. (6) Framing of an appropriate insurance scheme suggested for meeting the OPD needs of pensioners in non-CGHS areas.

Voluntary Retirement: Persons seeking voluntary retirement on completing qualifying service of 15 years but less than 20 years to be paid one time lump-sum retirement benefit of 80 months’ salary.

Payment of Gratuity: The maximum pecuniary limit of payment of Rs. 3.5 lakh raised to Rs. 10.00 lakh

Leave encashment: Number of EL (60 days) encashed while in service excluded from overall ceiling of encashment of 300 EL at the time of retirement. Both EL and HPL eligible for encashment subject to overall limit of 300 days but no commutation of HPL for making up shortfall of EL.

Public holidays: Continuation of five-day week, three national holidays, No gazetted holidays. Eight restricted holidays.

Women employees: Benefits like staggered working hours, special leave for child care, enhanced maternity leave of 180 days.

Advances: A new mechanism for grant of advances under which an employee will take the advance from an approved bank and the Government will give an interest subsidy equal to two percentage points on the rate of interest being charged by the bank to the employee. Existing limits of various advances doubled for subsidy and provisions made for their automatic revision periodically. Eligibility for taking advances removed.

ITS Absorption: No necessity of retaining Indian Telecom Service (Group A) since function of providing Telecom services corporatised. Existing officers of this service either to be absorbed in BSNL/MTNL or else to be sent to surplus pool.

Financial implications: The recommendations to cost Rs.12561 crore in the year 2008-09. Savings of Rs.4586 crore likely to accrue on account of various measures suggested.The net financial implications estimated to be Rs.7975 crore for the year 2008-09 with one-time burden of Rs.18060 crore on payment of arrears.