Retirement issue sent to CPC : FM

Finance Minister P.Chidambaram informed the Lok Sabha on Friday (23/11/2007) the the Sixth Central Pay Commission (CPC) is expected to give its report before 4th April 2008. Finance Minister said that while the specific issue of retirement age did not figure in the terms of the Pay Commission, the government, however, had forwarded references of the matter to Pay Commission for examination. Altlthough the Pay Commissionm, set up last year has not been asked to consider the issue of raising the retirement age from 60, the commission is assessing existing and future liabilities for government on pay and pensions over next 3 to 4 decades. To ensure that the state governments are able to take the impact of any wage revision, the Pay Commission has also sent a questionnaire seeking details on several counts.

Debate on for Unified Civil Service

There is no unanimity between different Group-A central services and associations representing the All India Service officers (IAS/IPS) on whether a Unified Civil Service will suit India better.

The Sixth Central Pay Commission had sought response from different services on the case for a unified civil service by merging all Central (both technical and non-technical) and All India Services and whether there should be two distinct streams, one embracing all technical services and another for non-technical services.

The Indian Revenue Service (Customs and Central Excise) and the Indian Information Service associations supported the idea of unified civil services.

The IRS (C&CE) in its memorandum submitted to the Sixth Pay Commission has said "The recommendations of the IRS (C&CE) is to request the Pay Commission to recommend to constitute a Unified Civil Services pool or an Integrated Management Pool, by empanelling officers from various participating Group 'A' services to fill up posts of Joint Secretaries and higher level posts in ministries/departments of the center. The Government could lay guidelines, uniform for all services and conduct a screening by the UPSC."

The Indian Information Service Group 'A' Officers' Association has responded saying "There is a case for unified civil service. All those who come through the common civil service examination conducted by UPSC, be merged to a single service. This is the first step to end disparity among services and render equal treatment to all the services."

The Indian Revenue Service (Income Tax) differs from the IRS (C&CE) on the issue.

The IRS (IT) Association has said "In the age of specialisation or super-specialisation, the case for a unified civil service would be difficult to support. In fact, it is more important to end the glaring inter-service disparity and monopoly of one service over senior positions irrespective of the suitability of officers of that service for the post."

The Indian Administrative and Civil Service (central) association has recommended saying "There cannot be a complete unified civil service system. in fact, such an attempt will blur the focus from the IAS."

(Published in Hindustant Times on 19/11/2007)

Interview of Justice B N Srikrishna Chairman CPC

Justice B N Srikrishna, Chairman Sixth Central Pay Commission has givev an Interview to the magazine 'Gfiles' which is exclusively devoted to the 'Babus' published by http://www.indianbuzz.com/ . We have got permission to reproduce this interview for our readers.


"Shape up or Ship Out is our Mantra, Chairman Sixth Pay Commission Justice B N Srikrishna "

Q. What terms of reference were provided to the Sixth Pay Commission?
A. Our terms of reference were to focus on good governance as also to ensure the bureaucracy can be spruced up to provide cutting edge administration. We would be interested in seeing how these qualities can be achieved in the day-to-day administration of the country. Our objective is to effect rationalization of existing structures and work out a pay package that will promote efficiency and productivity.


Q. What is the methodology being used by your team?
A. We believe performance should be incentivised. While we are not depressing pay or giving negative performance incentives, the approach of this Commission is that most of the growth in emoluments should come in form of performance related incentives that are over and above the normal pay. The underlying idea is that good performances must also carry pecuniary reward. Any growth in the compensation should come on account of better productivity. All future growth should be attributable only to better end results with non-performers being denied any growth. Shape up or Ship Out is our mantra. We are presently working out the parameters on how such a policy can be implemented.

Q. This will obviously cause a lot of heart burn?
A. Rewarding performers will inspire employees to perform better which can only result in better delivery for the common man. Only non-performers will be unhappy with such a dispensation. With the right incentives, the bureaucracy can be enthused to give ever improving results. The question to be asked is why a private company provides results whereas this is not the case within the government. We keep talking about making India a super power with growth rates exceeding nine per cent. To bring this about, every aspect of the nation needs to gear up to achieve these results. We cannot have a BMW engine attached to a khatara gadi. I’m an optimist. I believe ki yah kyoon nahi ho sakta hai.

Q. A performance mantra for the central government employees is bound to impact the state government employees also?
A.This is bound to have a ripple effect on state governments also. The State governments should also benefit in terms of better delivery as they cannot give, give, give all the time without expecting better performance. What this will translate into will be more discipline, more conscientiousness and extreme accountability from their employees. The employee must be able to account for every rupee that the government spends.


Q. Is the Sixth Pay Commission going to advocate a hire and fire policy for government employees?
A. The terms of appointment of existing employees cannot be changed to their disadvantage. What the Government can do is to adopt a contractual approach for hiring of government employees for specific jobs at certain levels. It is a logical corollary for ensuring better performance that needs to be looked at. The spirit of competitiveness in the world of trade and commerce must be introduced in governance.


Q. How will contract jobs work for defence service officers?
A. I am not suggesting all government servant jobs should be made contractual. I believe that many posts can be identified for contractual appointment, especially at a higher level or those requiring special skills. It does not imply that majority of posts would be on contract but that for some top level posts above a certain level Government should have the choice of the best talent available.


Q. How much more will the recommendations of the pay commission cost the exchequer? The public are fed up of government servants being paid more and more for non-performing?
A. The successive Pay Commissions have increased salaries of the employees. We believe that every rupee being paid to central government employees is coming out of taxes being paid for by the common man. Each time they received a pay hike, the taxes go up accordingly. Every time a small section of society is placated, the man-on-the street (who pays for this) is going to get upset. Hence, any increase should result in better delivery to the common man. We are working towards achieving this end. We are also trying to ensure that the additional burden on the government is well within its means. We are also well aware of the fact that Central employee salary hikes are bound to have a spiraling effect on state governments who will also be forced to increase salaries even though some of them are already (financially) in a bad shape and are facing deficits. The impact of our recommendation on State governments is also included in our Terms of Reference.


Q. Most of their money is spent on paying salaries?
A. The exact proportion would vary from State to State. As per the information available with us, out of 20 State following the Central pay scales, 14 States are in a comfortable fiscal position. If the citizen gets every rupees worth, we are working towards an ideal government.


Q. Where are the states going to raise the money from?
A. These recommendations are not binding on the states. Infact, these recommendations are not binding on the central government – it is within their discretion to accept or reject. Pressure from the unions forced the government to further enhance salaries beyond what had even been recommended by the Fifth Pay Commission. That is one of the main reasons why states like Kerala and Maharashtra went in the red. Maharashtra has just recently managed to come out of its deficit.


Q. Are government pay scales going to be made at par with private companies?
A. There is the general expectation that government pay scales be brought at par with salaries in the private sector. It will not possible to match private sector salaries. Boys coming out of school are getting salaries of over Rs one lakh per month and more. We have to look into this whole issue to see how much parity we can achieve.


Q. There is a strong rumour that salaries of government secretaries going to be made Rs one crore and more?
A. (laughs) I don’t think too much credence should be given to rumours. All sections are demanding a substantial increase (in salaries).

Q. Has the Finance Ministry instructed you to work within the framework of the budget or will your exercise end up being open-ended?
A. We have to keep the financial implications of our recommendations in mind. What is the comfort level of the Finance Ministry going to be ? Can they afford our recommendations or not. There is no point in recommending an increase of Rs 50 when all they can afford is Rs ten.

Q. You must be facing pressure from all quarters to increase salaries. How are you coping?
A. There is no doubt that everybody wants a larger slice of the cake – the question of course is just how much more can be given. I’m working with a team of efficient people who are doing most of the work. I guide them wherever it is necessary in that sense it is not very different from judicial work. Wherever there are conflicting interests, I step in to try and hold the balance.

Q. By when do you expect to make these recommendations?
A.The Sixth Pay Commission recommendations should be out by next March-April.

Q .If government employees have contractual jobs, how will they receive pension benefits?
A. Persons on contract would be entitled to a higher compensation package and not to pension for the contractual period. Those employed prior to 1/1/2004 would continue to get pension. Those employed on or after 1/1/2004 will continue to be governed by the New Pension Scheme.

Q. India is a complex country with different political interests. Do you see your recommendations actually being put into action?
A. My job ends the day I submit the report. I am looking at the whole situation objectively and on that basis will make my recommendations. How the government puts these recommendations into action is not a concern of mine.

Based on this interview in the 'Gfiles', the Yahoo Business News has also made a news article. Read it here.

Taxmen want corporate salaries

Encouraged by an unprecedented 40% growth in direct tax collections, the income tax officials have sought salaries at par with corporate sector from the Sixth Pay Commission.

"In order to have the best minds in public sector the pay scales and perquisites should be at par with private sector" income tax employees said in their representation to the pay commission, which is expected to submit its report to the government early next year.

Referring to high salaries of tax officials at international level, the IT department officials said though a well-paid bureaucracy may not eradicate corruption, it would certainly remove the perceived feeling of discrimination.

"There is no full neutralisation in respect of HRA anywhere in the country" the IT officials said. They have also reportedly asked that annual confidential reports be made open documents.

Sources said over 60 Class-I officials have already left the IT Department, which is facing shortage of staff due to restrictions on recruitment and unremunerative salary packages in comparison to the private sector.

The officials who left government service to join private consultancy firms or corporates are earning more than double the salaries then their counterparts in the department.

Although Finance Minister P.Chidambaram has announced one per cent incentive to the tax employees out of tax collections over and above the budget target, and said over 7000 posts would be filled, the IT Department is losing revenue due to shortage of competent staff, the source said.

They said though government is ready to pay better salary packages to the tax employees, it will wait for the recommendations of the Pay Commission.

Since it was hopeful to surpass the budget target of tax collection at the Rs.548000 crore in 2007-08, it would not find it difficult to pay high salaries to attract better talent in the tax department, they said.

(PTI news published in News papers 15/10/07)

Another News Item about CPC

These days Newspaper across the country, publishing News item about Six Pay Commission and its recommendations. Speculative reports about how much increase in the pay of the Central Government Employees will be as well other allowances and other effects are being continuously published. After Deccan Herald and Malayala Manorama in Kerala, its now turn of the Hindi News Papers Amar Ujala and Rajasthan Patrika. Amar Ujala has published a special report yesterday and Rajathan Patrika has published article on the same line today. These News item in Hindi News Papers only confirm various information already in the circulation among employees. Some of the Fine prints of the reports are :

• Retirement Age is going to be 62 years
• Basic salary will be increased by 100-150%
• Net effect will be 30-40% only
• Lowest salary will be more than Rs.10000
• Government has asked the commission to give its report early
• Child Education allowance will be Rs.200-300
• HRA increased by 15% i.e. 45%
• Less Government Holidays
• Six day week office working
• Pay of Cabinet Secretary will be One Lac

Till final report comes, you will see more and more such News Items in various news paper.

Read Amar Ujala news article at http://www.amarujala.com/Vishesh/detail.asp?newsid=4962518

Many pay-scale charts in circulation

These days many charts for new Pay Scales are in circulation in the world of Government Employees. I have received some of the such charts where new proposed pay scales are listed. One such Pay Scale chart already posted on this blog earlier. After seeing all these charts, I have come to the conclusion that all these are imaginary work of fun loving Babus'. These new proposed pay scales are contradicting each other. Some current pay scales are missing in these charts. These Pay Scales are prepared with the assumption that Six Pay Commission will give new Pay Scale by 2.5 times to 3.4 times of the current Pay Scales. So, just to have some fun, people are preparing imaginary pay scales and circulating. Till final recommendations of the Six Pay Commission comes, several more new charts with proposed pay scales will be in the circulation.

Only Government can decide on pay Commission : SC

While Government employees waiting anxiously for the Sixth Pay Commission's report, the Supreme Court (SC) has held that it is the sole discretion of the government to accept or reject the recommendations of such commissions and court can not order their implementation.

A bench headed by Justice H.K. Sema said "Although the Pay Commission is an expert body, the state in its wisdom and in furtherance of its valid policy may or may not accept its recommendations"

The bench upheld an appeal filed by the Central Government against the order of the Central Administrative Tribunal (CAT) and the Calcutta High Court, directing the government to give increased pay scales with retrospective effect and merge certain cadres of typist with the clerical staff in the Indian Railways. The High Court and the CAT had passed the orders on a batch of petitions by typist who wanted the higher scales on basis of the recommendations by the Fifth Pay Commission with effect from 1993, instead of from 2000 as decided by the Central Government.

The Central Government had agreed to implement the higher pay scales for a cadre of typists from 2000. The decision was based on recommendations made by the Anomalies Committee.

This ruling of SC has clarify that the Government has every right to accept and reject the recommendations of the forthcoming report of Six Pay Commission.

No Interim Relief for Central Govt. Staff

Finally it is clear that there will not be any Interim Relief (IR) to the government employees.

The Sixth Central Pay Commission does not intend awarding an Interim hike (IR) in salaries of Central Government Employees, Finance Minister P. Chidambaram told the Rajya Sabha today (14/08/2007).

In a written reply, Chidambaram said that the commission has informed the Government that it expects to submit its final report within the stipulated date of April 4, 2008.

No interim report has therefore been contemplated.

This blog has already predicted earlier that there may not be any IR for the employees.

Supreme court Employees covered in 6 CPC

New Delhi : 2/8/07

The Centre on Thursday said salaries of Supreme Court employees will also come under the purview of the Sixth Central Pay Commission, which is set up to review the wages of government staff.

"The Union Cabinet has given its approval to amend the terms of reference of Sixth Central Pay Commission that will now cover the employees of the Supreme Court while making recommendations," Minister of Information and Broadcasting Priyaranjan Dasmunshi told reporters after the Cabinet meeting.

Constituted last year, the four-member Commission has been asked to submit its report within 18 months. Also, it has to look into the desirability and need to sanction interim relief, if any, till the time its recommendations are submitted and accepted by the government.

BSF Presentation to CPC

Recently, while surfing the internet, I found a web page exclusively for BSF's demand and presentation to the Sixth Pay Commission (CPC). This page has a presentation and suggestions made by the DG BSF to the CPC and I found it very interesting and informative. It has some facts which probably none of us might be aware of. The best part is the page is the 101 point recommendations to the Sixth Pay Commission by the BSF. Some of the points are very interesting and applies to other categories of the employees also. It also has employees perception survey and a questionnaire about the hardship of the policemen face.

Visit this page here.

IR before Diwali?

There are speculations in media that there may be some Interim Relief (IR) to the Central Government Employees before comming Diwali. Recently a news article has come in the Hindi Daily "Dainik Jagran" about this development. If this report has something correct in it then it may be good news to the lakhs of Central Government employees eagerly waiting for IR. This report gives indication of employees getting at least Rs.1000/- as IR. It is clear from this report that there is some thinking going on in the Government to give IR to the employees.

The scanned copy of this news paper article is available here.

States want Center to bear financial burden

States have responded to the Six Pay Commission's (CPC) questionnaire to the states about the financial impact of any pay hike of Government employees on the states.

The questionnaire has sought to know the impact of accepting the recommendations of the Fifth CPC on the finances of the state Government. The questionnaire has also sought to know whether the state government has set up any Pay Commission for considering the salaries of its employees either in the past or currently.

Some of the States has responded to this questionnaire, and want that Center should bear the burden of any Financial burden, which may arise with the acceptance of the recommendation of the Six Pay Commission. For example, Orissa Government is of the view that any financial implications arising out of the increase in salaries and allowances of the Government employees should be borne by the Center. This view is endorsed by many states at the meeting of state finance ministers. Majority of the state gone nearly bankrupt due to the recommendations of the Fifth Pay Commission and with great difficulty, states have achieved and economic turnaround and there is fear that any increase in salaries and allowances of government employees can shatter the government's finances.

States have been asked by Six CPC to send data for the past five years on the expenditure incurred on account of salaries, allowances and pensions of state state government employees, employees of local bodies and autonomous organisations.

Scientists Leaving DRDO

A news article in Indian Express dated 14/06/2007 has reported that there is a shortage of the Technical persons in the DRDO as Scientists are leaving to the greener avenues available in the Private Sectror. More than 300 Scientists and Technical staff has left DRDO in the year 2006.

Therefore, DRDO has made a presentation to the Sixth Pay Commission that the condition of working should be made better so that Scientist may stay for longer time say 15 to 20 years as DRDO projects are for longer duration.

Complete new article can be read at http://governmentjob.googlepages.com/IE140607.pdf

More Army Officers wants to leave

According to the some reports in media, if recommendations of the Sixth Pay Commission are not up to the expectations of the Officers in the Armed Forces, there will be a problem of shortage of officers and staff in all 3 Armed forces and to the security of the country. Thousands of officers in the forces are ready to apply to leave the service of the armed forces if salary is not raised up to satisfactory level.

According to the reports, high placed sources in the Army has said that in Army itself, around 1000 to1500 officers from the rank of Lt. Col to Col. level can resign. Some of the desperate officers are just waiting for the final report of Sixth Pay Commission only, so that they can decide. Army requires at least 46 thousand officers, where only 35 thousand are serving currently, so there is a shortage of 11 thousand officers. So if some of these officers, specially young and experienced officers, leave the forces then there will be a big blow to the army. It would have been more shortage if the recommendations of the Ajay Vikram Singh Committee would not have been accepted. Young Officers are more prone to resign and wants to leave.

The recommendation of the Sixth Pay Commission are being seen as "Time Bomb" in the forces, because if salary is increased up to the mark, then it is ok, otherwise there will be a rise in the resignations. This situation is same for Scientist and Technical manpower of the civil organisations also.

To deal with this situation, the resignations of the officers will be rejected as has happened in the Air Force. More than 250 pilot left Air Force in just one year, so now pilots are not allowed to leave. For the last 2-3 years, there is a spurt in the attrition rate in the Army. Those officers who think that there will not be much increase in salary by the recommendations of the Sixth Pay Commission or salary will not be increased up to their desired level, wants to leave Armed Force as of now so that if their resignation would be accepted. The number of officers who wants to leave army in the year 2006 rose to 811 in comparison to the year 2004 when 436 officers applied to leave.

Create Saperate pay commission for forces : Parliament Committee

Permanent Parliamentary Committee on defense matters has strongly recommended saperate Pay Commission for the Armed Forces.

Committee has said that Armed Forces are fighting against Terrorist activities, insurgencies and dangers from within and outside the country, besides giving support in the natural disturbances, therefore a saperate pay commission is required to be created for the forces. According to the Committee, there were many anomalies in the recommendations of the Fifth Pay Commission for armed forces. For example, pension of Major General was less than Brigadier, not only this but the pension of the Jawan (Sainik) was recommended less than the pension of peon of the Central Government. So, Fifth Pay Commission totally neglected the need and the aspirations of the Armed Forces. Fifth Pay Commission did not pay attention to the problems of the Armed Forces personnels like promotion avenues, living away from family for a longer time, Difficult conditions and danger to the life etc.

According to the Parliamentary Committee, the recommendation of last pay commission has made services of Armed Forces unattractive to the brilliant young men of the country. Because of this, number of Officers in the forces has reduced. In the Army, more than 2000 officers has requested to leave the Army from 2001 to 2004 only. It comprises application of 2 Lt. General, 10 Major General, 84 Brigadier Position of Air Force is more alarming, where most of the pilots want to leave. But on the other hand very few IPS and IAS has left the service.

In the Sixth Pay Commission, no member is included from Armed Forces. Therefore, Parliamentary Committee has decided to make Sixth Pay Commission aware of the service condition of the Armed Force.

40 percent jobs may be cut

Sixth Pay Commission may recommend reduction in the work force by 40% to compensate the probable increase in the payments to the employees.

According to a news published in the Dainik Jagran News Paper, Center for Economic Studies and Policy, which is going to give its report to the Pay Commission, finalising its suggestions that the employee strength should be reduced. Sixth Pay Commission has enthrusted the responsibility to the Centre to study the various financial implications for Terminal Benefits to the employees, in which analysis of the the financial burden on the Government in present and for the the coming 2-3 decades is to be done and to suggest the ways to come out of the the financial mess after implementing the recommendations of the pay Commission are included.

The Centre is of the opinion that financial burden on the government after implementing the possible increase in the salaries can be nullified by cutting employee strength by 40%. Additionally, specialists of the Centre are in the favour of reducing specialist jobs in the Government. They want to abolish the vacant posts in the government. Centre has not finalised its opinion about the nature of the posts to be abolished. Specialists of the Centre will give its report to the Pay Commission with some examples. It will be clealy mentioned that if only the recommendations of the improvement of the financial increment are accepted then it can be disastrous. According to the sources of the Centre, some State governments have directly approached the Centre and given it opinion.

Double our salary, asks forces

A news article has been published in the The Times of India dated 18/04/2007, which says that Security forces wants inclrease of at least double in the salaries, giving reasons "High Risk, Trauma and Turbulence of Services".

the exceprts of the articles are here.

Armed Forces are seeking a hike of over 400% in their salaries and allowances from amounts fiexd by the 5th Central Pay commission, wchich came into ieefect on january 1, 1996."

Since 1996, our salaries have gone up by almost two times, with 50% of the DA being merged with the basic pay and other things. Hence we are looking for a hike by another 200%, roughly double of what we are getting now", said a Fauji.

The three Service chiefs made a joint presentation to Defence minister A K Antony for recommendations to be made to the 6th CPC. Seniors officers say that they have come up with "a mathematical formula" for the pay hike, keeping the country's GDP growth and the rise in the prise index in mind.
Armed forces are pressing for a hike of "4 to 4.5 times" in the 6th CPC over the 5th CPC, with a special "military servicce pay" for the hardship they face.

The armed force are also looking for the implementation of the long-sought one-rank one pension principle, which every political party promises in the run-up to elections but the junks soon after.

The main contention of the armed forces, who are finding it difficult to attract bright youngsters to join as officers due to "poor pay packages and hard lives" is that they deserve to be treated better since teir terms and conditions of service are totally different from other government jobs.


Link : See original articel in ToI here.

DRDO seek four times salary hike

According to a news article published in the Daily Hindustan Times dated 19/04/2007, The Defence Research and Development Organisation (DRDO) expects a 400 percent hike in the salaries of the scientists from Sixth Pay Commission to check the rising attrition and to attract talent.

This is the content of article, which I am reproducing here.

In presentation made to Defence Minister, A.K. Antony, DRDO raised demands including "intellectual capital" pay, enhancing study leave from three years to four years and a provision for sending scientists abroad to attend international conferences every two years.

Arresting the exodus of its best brains - over 1400 scientists have quit the DRDO in the last 10 years - has surfaced as big challenge for the organisation. Attrition was particularly high last year when 501 scientists left the DRDO. Led by its head and scientific advisor to the defence minister, M. Natarajan, the DRDO pressed its case for more incentives showcasing the "impressive qualifications" of its scientists in the presentation.

DRDO has sought a share of monetary benefits accuiring from commercialisation of products for scientists, apart from a special incentive for papers published internationally.

In its 14th report tabled in the Parliament last month, the Standing Committee on Defence had advocated formulating a comprehensive national policy to recruit and retain talented scientists.

"The government will have to loosen its purse string for that", a scientist said.

It is clear that at lesat 400% hike is sought by Scientific organisations as salary has been almost double from 1996 so only 200% more required to be increased.

Link : Kindly see original article in HT here.

IR Unlikely

It is learnt from our sources that there may not be any Interim Relief (IR)(as some of you may be waiting) because the Sixth Pay Commission is expected to give its report within this year.

Commission is going to get reports of various studies being done by Management experts and various institutes sometimes in the second part of this year and these reports may be included in the final report of the Commission. This report is exepcted to be submitted to the Govt. at the end of this year. Therefore, it is unlikely that the IR may be announced by the Government.

Pay commission wants to punish Balck Sheeps

According to a article published in Hindi Daily 'Dainik Jagran', Sixth Pay Commission is considering concept of 'Performance based Salary'. Six Pay Commission can be little tough for pay increment hopeful Central Government employees. In the Performance base Pay structure, pay can be reduced for non-committed and irresponsible employees. Pay commission is consulting Indian Institute of Management (IIM), Ahmedabad in this regard.

It is first time in the history of Pay Commission, that a Management Institute is being consulted for fix the responsibility of the employee for their work. IIM in its part has constituted several team, which are visiting various Central Government Ministries and analysing working pattern and salary structures of the visited Ministry. According to the report, these teams may suggest financial fine for non-performing employees.

The IIM teams may give its recommendations at the end of the June after studying all aspect of Pay structures based on the performance of the employees. Pay Commission will decide how to incorporate these recommendations in its final report.

Sources says, teams of Management experts from IIM wants to adopt Corporate Culture in the Ministries to improve the capabilities of the employees of the various Departments and Ministries. They want that while performing and responsible employees should be rewarded, those who are non-performing should be punished as well. IIM teams have discussed these matters with employees and officers in the ministries. Management experts are of the opinion that employees should have the fear of losing some thing if they do not perform well.

According to the report IIM experts have not reached the conclusion whether concept of 'Performance base Pay' should be introduced at the top level or should be implemented for all classes of the employees.

Our sources in the Ministries have also confirmed that IIM team are visiting their Ministries these days.

Link : Article published in 'Dainik Jagran'

Commission study on terminal benefit to employees

As mentioned earlier by this blog that Six Pay Commission is taking various case studies before comming to any conclusion. The Commission is now studying the various Terminal Benfits of the Central Government Employees to study Long Term Measures for Achieving Reduction in the Liability of the Government towards Terminal Benefits of Central Government Employees.

The study is being conducted by the Institute for Social and Economic Change, Bangalore and is expected to be completed within a period of 7 months by September 2007.

Complete detail is available at http://india.gov.in/govt/cpc_studies.php#3

Babus' having new pay scale charts

lo! Pay Commission is still discussing with various organisations and studying various reports and meanwhile Babus' in the departments are having a ciculation of imaginary expected New Pay Scales from Sixth Pay Commission. We have received one such copy from our sources and putting this for you to download and see it your self.

Pay Commission Studies the cost to the Govt.

As mentioned earlier by this blog that Six Pay Commission is taking various case studies before comming to any conclusion. The Commission is now studying the Estimate of the the Compensation Package for Government Employees and the Cost to the Government. The aim of this study is to assess the total cost incurred by the Government for Government employees in various grades and sectors. The study will take into account salary, various allowances as well as the other benefits provided by the Government to their employees.

This study is being conducted by the Xavier Labour Relations Institute (XLRI), Jamshedpur.

The Terms of Reference and methodology is available at http://www.india.gov.in/govt/cpc_studies.php#2.

Wait more for IR

Entire January of new year 2007 has been passed and no signal from Government side about interim relief to the employee. Central Govt. employees are eagerly waiting for IR. Our sources has informed that there is some file movement in the Ministry, but no action has been taken yet. Meanwhile there are many rumours regarding IR are floating around in the employee circle :

• that there will be IR @10% of the Basic Pay.
• that there will be a flat Rs. 1000/- IR
• that IR will in the two groups viz. Rs.1000/- and Rs.2000/- flat depending upon the category of the employee/officers.
• that total IR will be 10-20% of the Basic Pay for the entire term of Six Pay Commission, so Govt. will give this IR in phases and first phase will have 7.5% of the Basic Pay.

Insiders say that chances are more for the number 3 rumour.

But it has emerged that no IR is comming before end of March or early April. Since inflation is rising more that 6%, Govt. has to give DA also to the employee at the higher side, so for IR Govt. has make arrangement in the budget itself.

Give incentives to Scientists - PM

India's top sceintists last month rang alrm bells, pointing the steady attrition of scientists from Government institutions to the the private sector.

Responding the crisis Prime Minister Manmohan Singh on Wednesday advocated incentivising research productivity of scientist and greater freedom for the bright young sparks.

"We can consider incentive payments related to the research productivity of scientists measured in terms of a variety of criteria" Singh added at a meeting of the CSIR Society on Wednesday. The PM also called for a review of the efficacy of the existing arrangements that provides for handling consultancy project and selling intellectual property right.

"Talent in today's world is very mobile" he acknowledged, noting the "concern" among leaders in the science and technology community about attrition of scientists to the private sector.

The PM's prescription went deeper into problems afflicting research in the country. For, one he made clear that scientists playing the role of administrators at research institutes may not always be a very good idea and suggested "managerial reform" at CSIR as well as other universities.

This also shows growing opinion among leaders and scientific community that Scientists should get some thing special by the Sixth Pay Commission.

Pay Commission started studies

It is learnt that the Sixth Pay Commission has initiated the studies for reaching some conclusion in the pay related matters. Floowing studies are being taken right now:

• Study on Feasibility of Performance Related Pay (PRP)-
• Study on Compensation Package
• Study on Terminal Benefits of the Central Government Employees

The first study is being done by by Indian Institute of Management, Ahmedabad (IIM-A). It is to be recalled that one of the member of the commission is Prof. Ravindra Dholakia, who is from IIM-A. We will go through these studies in the comming months.