CPC report on 31 March 2008

Sixth Pay Commission will submit its report on 31st March 2008 as stated by Finance Minister P. Chidambaram in his Budget speech. He hoped that the pay commission report will fulfill the expactations of lacs of Central Government Employees.

He also proposed to change the Income Tax rate in view of the Sixth Pay Commission report. It will also benfit the employees. New rate of tax slabs are as follows:

1. 0 - 1.50 lac : Nill Tax (1.80 lac for woman)
2. 1.50 lac (1.80 lac for woman) to 3.00 lac : 10%
3. 3.00 lac to 5.00 lac : 20%
4. 5.00 and above : 30%

All eyes are on the Budget

Everybody is waiting to see the allocation of fund in this Budget towards additional liability to the Government for anticipated increase in the salary of Government employees after Sixth Pay Commission recommendations.

Earlier this week, the Railway Budget has made and ad hoc provision of Rs.5000/- crore for 2008-09 to meet the additional liability towards employees and pensioners in anticipation of the Pay Commission's recommendations.

Not much impact to State Governments

The Planning commission does not foresee any significant disruption on account of increase in salaries of state government employees.

'I don't think that this disruption is going to be all that cruicial,' Planning Commission Dy. Chairman Montek Singh Ahluwalia said to the Hindustant Times on the possible impact of the adoption of the Sixth Pay Commission award by state government.

Pointing out that blind adoption of the Pay Commission's award by the state government was not a good idea, Ahluwalia said Pay Commission were constituted once in 10 years and the states can do many things to neutralise the impact.

The government, he said was made to effect a big increase in salaries of its employees at the end of 10 years as the dearness allowance does not adequately take care of inflation. 'So at the end of 10 years, the government will be benefitting from a squeeze in real pay because the DA was never enough, so you have a big increase,' he said.

Report soon says TOI

The long wait of lakhs of central government officers and staff is about to end as the Sixth Pay Commission is expected to finalize its report ‘‘very soon,’’ well before its term ends on April 4.

Even before the pay panel submits its recommendations to the government, the first indication of what is in store for officialdom could be available in 10 days’ time when finance minister P Chidambaram makes his Budget speech. Since the employees’ fortunes are almost certain to be touched upon, the commission is keeping its recommendations a closely guarded secret, although speculation on the quantum of salary hike have ranged from a moderate 30% to a highly optimistic 165%.


Apart from his speech itself, the actual allocation by the finance minister under the head: salaries and pensions, may well be another indicator of what is in store for employees. But even before the February 29 Budget, the Rail Budget, commission sources said, could come as an eyeopener as well as the ‘‘profitmaking’’ railways is looking for ways to meet its expected salary and pension bill of Rs 9,000 crore in the light of possible salary changes and a tight-fisted finance ministry.

A pre-Budget meeting of the commission is being awaited and this could be scheduled to consequently enable the finance minister to make a mention of possible hikes for lakhs of employees, including those in defence and paramilitary forces. Sooner or later, the state governments across the country revise salary structures of their employees in accordance with what is accepted at the Centre.

Commission sources did not rule out a pre-Budget formal presentation before Chidambaram but added that the panel was ‘‘unlikely’’ to make a mention of any change in the present retirement age of 60 years.

‘‘There are two distinct processes — the commission recommending a salary structure and the government accepting the proposals. The commission has interacted with a large range of players, held wide-ranging meetings, received petitions and paid visits to different parts of the country. The outcome of this prolonged process would be reflected in the recommendations,’’ the sources said.

‘‘There are two distinct processes — the commission recommending a salary structure and the government accepting the proposals. The commission has interacted with a large range of players, held wide-ranging meetings, received petitions and paid visits to different parts of the country. The outcome of this prolonged process would be reflected in the recommendations,’’ the sources said.

Appeared in the Time of India, Delhi edition on 20/02/08

No equality in allowance with Centre in UP

UP Government said on wednesday in the Vidhan sabha that allowances of the State government employees can not be equal to the Central Government employee in UP. Therefore, the question of merging 50% of DA in the basic day does not arise. Finance Minister Mr. Lalji Verma in a written reply to question of Mr. Sudhir kumar of Samajawadi Party said that the economic condition of the state is not in position to bear this additional burden and hence HRA, CCA etc. can not given equal to the central government employees.