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New Delhi: Hefty salary rise await some four million employees of the federal government with effect from January 2006 if the recommendations of the sixth Pay Commission get the official nod.
The recommendations are expected to enlarge the government's wage bill by about Rs79 billion ($2 billion; Dh7.34 billion) during the next fiscal year with an additional one-time burden of Rs180 billion as per official estimates.
The recommendations - which cover all new, existing and retired employees of the federal government as also serving and superannuated members of the armed forces - have been made with effect from January 1, 2006.
The report of the Pay Commission, headed by Justice B.N. Srikrishna, was submitted to Finance Minister P. Chidambaram here and suggests higher pay to an estimated four million government employees.
For the cabinet secretary, the top civilian official, the pay is now proposed at Rs90,000 a month, a sharp rise from the present Rs30,000. For civilians, the commission has suggested a salary of Rs6,600 at the entry level, compared with Rs2,550 now. At the level of secretaries, the recommendation is for a fixed emolument of Rs80,000, against Rs26,000.
The panel has also suggested that while the house rent allowance for grade A cities such as the four metros be retained, a higher allowance of 20 per cent be paid in grade A, B1 and B2 and 10 per cent in grade C cities.
The defence personnel should be entitled to a military service pay of Rs6,000 up to the rank of brigadiers, Rs4,200 for nursing officers, Rs1,000 for all personnel below the rank of officials.
In another bonanza for defence forces, the panel says encashment of leave must be de-linked from the number of years the person is in service, and be eligible for up to 300 days of such benefit at the time of retirement.
Cabinet action
Officials in the rank of director generals in medical services should get a fixed pay of Rs80,000, the pay panel has said. "The report will be presented before the union cabinet for appropriate action," a finance ministry spokesperson said, after Chidambaram received the report.
The pay panel has also suggested that fixed allowances must be made inflation proof with provisions for automatic revision whenever the dearness allowance, payable on revised pay bands, goes up by 50 per cent.
Importantly, the panel has said that its recommendations be implemented in full as anomalies and inconsistencies could crop up otherwise.
Highlights
Other benefits
- Reduction in total grade number to 20 from the present 35.
- A new medical insurance scheme for government employees.
- Pension be paid at 50 per cent of the average pay.
- No linking of pension with 33 years of qualifying service.
- Higher pension for those above 80 years of age.
- Liberal severance package for those leaving service after 15-20 years.
- System for market-driven compensation to young scientists.
- Existing rates of most allowances be doubled.
- Reimbursement of education allowance be raised from Rs50 to Rs1,000.
- Hostel subsidy be raised from Rs300 to Rs3,000.
- Risk allowance be replaced by risk insurance.
- More pay to nurses, teachers, constabulary, postmen and forest guards.
- IANS
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