Pay Commission Recommendations

THE Pay Commission has recommended an annual increment of 2.5% of the total of pay in the Pay Band and the corresponding grade pay. The date of annual increments, in all cases, to be 1st of July. Employees completing six months and above in the scale as on July 1 to be eligible. Variable increment in pay has been proposed- 2.5% and 3.5%. Eighty percent or more employees in the grade to be allowed normal increment at the rate of 2.5% with the high performers (not exceeding 20 percent) during the year being allowed increment at the higher rate of 3.5%. The proposal sounds good for increasing efficiency. Existing rate of HRA to be retained for A-1 cities. A, B-1 & B-2 cities to be given this allowance at the higher rate of 20%. C and Unclassified cities to be given the House Rent allowance at the higher rate of 10%. City Compensatory Allowance to be mearged in Transport Allowance and the rates of this allowance to be increased by 4 times. Travel entitlements to be paid on actuals. Reimbursement of education allowance ia proposed 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 revised from existing Rs.300 p.m. to Rs.3000 p.m. Encashment of Earned Leave in case of Defence Forces personnel delinked from the number of years of service. All Defence Forces personnel to be eligible for leave encashment of upto 300 days at the time of retirement/discharge. Certain posts in Senior Administrative Grade (SAG) and Higher Administrative Grade (HAG) requiring technical or specialized expertise and not encadred in any of the services to be opened up for being filled by suitable officers within the Government as well as by outsiders on contract. Shift from career based to post based selection in the higher echelons of Government in order to get the best domain based expertise. Benefits like staggered working hours, special leave for child care, enhanced maternity leave of 180 days, better accommodation facilities in the form of working women’s hostels, etc. specifically for women employees. Greater emphasis has been laid on field offices/organisations at the cutting edge of delivery. Enhanced pay scales for Nurses, Teachers, Constabulary and Postmen with whom the common citizen has most frequent interaction. Forest Guards also to get higher pay scale. HIGHLIGHTS: ++ Minimum salary proposed to be Rs 6660/- per month; ++ Highest salary to be Rs 80,000/- fixed per month for secretary (Rs 90,000/- for the Cabinet Secretary); ++ No change in HRA rate for A1 cities; ++ HRA for other cities hiked. 20% at the place of 15% and 10 at the place of 7.5%. ++ Revised pay to be effective from Jan 1, 2006; ++ Defence forces to be treated at par with civilians for running pay bands and grades; ++ Revised pay to cost exchequer Rs 12,561 Cr in next fiscal; ++ An additional one-time burden of Rs 18,060 crore worked out towards arrears from the effective date; ++ Five-day work week to continue; offices to be closed only on three national holidays; all other gazetted holidays to be abolished and adjusted in restricted holidays. ++ Performance linked incentive scheme to be introduced, 20% of the employees can get higher increament of 3.5% at the place of 2.5%; ++ all fixed allowances to be made inflation proof with automatic revision of DA; ++ a new medical insurance scheme. The proposed recommendation fails to develop any efficiency yard stick for the government servant. Further, it imposes a heavy burden on the exchequer- and consequently on the tax payers. How much the tax payers pay for inefficient governance?

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