Saturday, November 29, 2008

Uttar Pradesh Cabinet nod to recommendations of Sixth Pay Commission

Big buck awaits the state Govt. employees with the state cabinet formally endorsing the implementation of the Sixth Pay Commission on Thursday.

Chief Minister Mayawati said the cabinet accepted the report of the pay parity committee set up in August. The new pay scale, which would benefit nearly 18 lakh state employees, will be applicable from December 1.

The revision of the pay scales — dearness allowance (DA) and pension — will cost the state exchequer an annual recurring burden of Rs 4,674 crore. The pay scale will come in force with retrospective effect from January 1, 2006. The arrears of salary, DA and pension will be paid in three instalments in the next three years. The total burden on account of the arrears is Rs 13,662 crore.

Twenty per cent of the arrears will be paid in cash during the current fiscal 2008-09. The remaining 80 per cent will be deposited in the provident fund account of the employees in two equal instalments in 2009-10 and 2010-11. The arrears of the pensioners will be paid during the current fiscal. Mayawati said that the state government had decided to pay the house rent allowance as recommended by the Sixth Pay panel.

This is the first time the government has also decided to pay compensatory allowance to the employees posted in cities with a population of 1 lakh and above.

In order to meet the additional burden on the exchequer, the chief minister has taken several measures, which includes a curb on the budgetary provisions of Rs 1,115 crore to the various departments. Besides, the purchase of new vehicles by all government departments will be banned. All departments have been asked to reduce the size of their fleet of vehicles by five per cent by the next financial year. The chief minister said the compensation for death on duty has been raised to Rs 10 lakh, while the compensation for death in terrorists or extremist attacks would be Rs 15 lakh.

Source : Indian Express

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