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Pay commission

(Querist) 15 March 2012 This query is : Resolved 
Is the recommendations of 6th Pay Commission Report are binding on private organisations? Ours is an educational institution. Do we have to pay salaries as per the 6th pay commission/state pay commission report? Also, does the Gratuity Act applies to educational institutes situated in Punjab?
Guest (Expert) 15 March 2012
You have not mentioned whether your educational institution is an aided institution or is run purely on private funds.
CA. Deepak Narula (Querist) 15 March 2012
It is run on private funds.
Guest (Expert) 15 March 2012
If run purely on private funds, in that case 6th Pay Commission scales would not be binding on the institution. That depends solely at the discretion of the management committee to adopt or not, but would be subject to the other Rules of the concerned State Government. But in any case the scales should not go below the minimum wages for each class of employees, as declared by the Government from time to time.
Deepak Nair (Expert) 15 March 2012
Agree with the views of Dhingra Sir.
Ajay Bansal (Expert) 15 March 2012
As advised above.
Sudhir Kumar, Advocate (Expert) 15 March 2012

An educational institution even if run by private fund is bound to pay the scales as applicable to Giovt teachers as condition of recorgnition.
Guest (Expert) 15 March 2012
Dear Sudhir,

It would be nice on your part, if you kindly facilitate providing reference to any such Government order binding the private schools, run by private funds, to give Government scales to their teachers. This would definitely enhance my knowledge please.
Isaac Gabriel (Expert) 15 March 2012
Neverthles,Gratutiy act will apply and the private schools are covered for the purpose of payment of gratuity.Implementation of the 6th pay rules is only optional for private schools.
ashutosh srivastava (Expert) 20 August 2012
Mr. Sudhir is right as regulations of AICTE regarding pay scales and service conditions of the year 2000 and 2010 are binding and applicable on private technical institutes.


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