Monday, April 20, 2009

Punjab Pay Commission submits report, 27 percent average hike for all employees

The Chairman of the Fifth Punjab Pay Commission SK Tuteja Monday submitted the report to the State Chief Secretary Ramesh Inder Singh here at latter’ s office. Tuteja was accompanied by the members of the Commission Amarjit Singh Oberoi and Prof. BS Ghuman and the Member Secretary RC Nayyar.

The Punjab Pay Commission has recommended to implement the revised pay scales from January 1,2006. Recommendations relating to allowances to be implemented from the date of notification by the Governmen

The highlights of the Fifth Punjab Pay Commission’s Repot are enumerated below:
Pay Scales, Allowances and Pensions of Punjab Government employees revised. Average increase to be around 27%.The Retirement age for all employees to be 60.Implementation of the revised pay scales from January 1,2006. Recommendations relating to allowances to be implemented from the date of notification by the Government.Five distinct running pay bands with longer spans being recommended-one running band each for all categories in groups D,C and B and 2 running pay bands for Group ‘A’.

Each post has a distinct Grade Pay attached to it. Grade pay is linked to its seniority in the hierarchy.Total number of Pay Scales to remain 32, spread across five distinct running pay bands.Several categories of employees such as Teachers, Nurses, and Constabulary to get higher pay scales.

A person stagnating at the maximum of any pay band for more than one year continuously to be placed in the immediate next higher pay band without any change in the grade pay.
Source :

Download Punjab Fifth pay Commission Report.

After submission of the report, the commission noticed some typographical mistakes at pages 85, 102, 159-162. The same has been corrected and forwarded to the Govt on 21.04.2009.

View the Corrections

Highlights of Fifth Pay Commission

  • Salary of school teachers, headmasters, principals, nurses and constabulary raised.
  • Dearness allowance hiked to 22 per cent.
  • House rent allowance to range between 10 percent to 30 percent according to location.
  • Employees allowed 10 days of leave for LTC.
  • Education allowance of Rs 500 per child per month for two children.
  • Fixed medical allowance raised to Rs 500 per month.
  • Mobile allowance varying from Rs 100 to Rs 500 recommended for all employees.
  • Non-Practicing allowance of 25 per cent of basic pay for ayurvedic, homoeopathic and veterinary doctors also.
  • Officers on deputation as faculty members to training institutions to get 30% deputation allowance.
  • Risk insurance to replace risk allowance.
  • One increment recommended for Group ‘C’ and ‘D’ employees for limiting family size to two children; additional increment if employee has only two daughters.
  • Ex-gratia to be increased from Rs1 lakh to Rs 3 lakhs in case of death in harness and from Rs 3 lakh to Rs 10 lakh for death while on duty.
  • Payment of interest subsidy of 2 percent by the government on bank loans.
  • Increase in entitlements on road travel, train and air travel.
  • Interest-free marriage loan for daughters increased to Rs 50,000.


rajdeep said...

The pay commission has not recommended transport allowance to the Govt employees stating that its an exchequer on the state govt and further state govt is not responsible for transporting employees from home to work place. I would like to mension here that either the transport from residence to work place for all the ministers, MLAs and senior govt officers should also be stopped and they should be told to come to office by their own vehicles.

eSekhon said...

The Fifth Punjab Pay Commission Report has in Para 7.27, Chapter 7 on PENSION (reproduced below) could not avoid committing the mistake that the Sixth Central Pay Commission did:

Fitment benefit to the Past Pensioners
7.27 For extending fitment benefit to the past pensioners, the Commission would recommend the same formula as finalized by the Sixth Central Pay Commission. Presently there exists a modified parity between pre and post 01.01.1996 pensioners.
Moreover, full neutralization of price rise on or after 01.01.1996 has also been extended to all the pensioners. However, in order to maintain the existing modified parity between present and future retirees, it will be necessary to allow the same fitment benefit as is being recommended for the existing Punjab Government
employees. The Commission, therefore, recommends that all past pensioners should be allowed fitment benefit equal to 40% of the pension excluding the effect of merger of 50% dearness allowance/dearness relief as pension (in respect of pensioners retiring on or after 01.04.2004) and dearness pension (for other pensioners) respectively. The increase will be allowed by subsuming the effect of conversion of 50% of dearness
relief/dearness allowance as dearness pension/dearness pay. Consequently, dearness relief at the rate of 74% on pension (excluding the effect of merger) should be taken for the purposes of computing revised pension as on 01.01.2006. The fixation as per this fitment formula will be subject to the provision that the revised pension, in no case, shall be lower than fifty percent of the sum of the minimum of the pay in the pay scale and the grade pay thereon corresponding to the pre-revised pay scale from which the pensioner had retired.
The Dearness Relief as on 01.01.2006 to be used as a multiplier for working out pension on January 01, 2006 works out to be 86% [50+(150*24/100)]= 50% +36%= 86%, and not 74% as mentioned by the Commission.

I hope they rectify it.


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