Thursday, August 14, 2008

Decks clear for CPC implementation

A wage hike higher than those recommended by the Sixth Pay Commission, marginal increase in annual increments and the payment of arrears in cash are some of the sweeteners incorporated in the proposal for Thursday's Cabinet meeting after Prime Minister Manmohan Singh’s intervention

The new pay package for the 55 lakh Central government employees, to be announced on August 15, proposes a 20 per cent raise over the pay bands suggested by the Commission. The panel in May suggested a gross 40 per cent hike, which means an effective 25 per cent after taxes. “The net jump in pay would be upwards of 30 per cent with the additional increase more for lower grade staff to narrow their difference with the (pay of) senior officials,” said sources.

This raise takes into account the Commission’s miscalculation of the dearness allowance - absorbed in the new basic pay—as 74 per cent whereas it should have been 83 per cent, they said. The proposed annual increment in the basic pay would also be a tad higher than the 2.5 per cent suggested by the Commission.

The Cabinet proposal talks of a uniform 3 per cent raise every year. The current norm is a Rs 500-increase in the basic pay annually within the grade scale.

But what would be music to the bureaucrats’ ears is that the PM has shot down Finance Minister P Chidambaram’s suggestion that the new wage be effective from January 2007 instead of January 2006 because of the heavy run on this year’s Budget. Chidambaram had also wanted that the past dues be parked in the General Provident Fund to be provided as pension after retirement of the employees so that this year’s outgo from the Budget would be limited to Rs 12,500 crore.

But the PM would have none of that. He has ensured that the new pay would be effective from January 2006, as recommended by the Commission, with 40 per cent of the arrears paid in the current fiscal and the remaining 60 per cent next year.

The actual pay-out would come in November after the monsoon session of Parliament in September passes the Finance Ministry’s supplementary Demand For Grant to fund the wage bill, said sources.

What has also been shot down, though by the Committee of Secretaries, is the inclusion of heads of other services in the rank of Cabinet Secretary. The CS will remain primus inter pares, the first among equals, and that position would not be granted to the head of Intelligence Bureau, the three service chiefs or the Chairman Railway Board—as had been demanded.

There would also be no scrapping of Group D personnel (peons in ministries and coolies in Indian Railways). The Commission had suggested that these posts be subsumed in Group C of clerks, fresh induction be stopped and jobs be outsourced.

As for the armed forces, the good news is that military service pay for persons below the officer rank (POBR) would be Rs 2,000 per month. The forces had demanded Rs 3,000 as against Rs 1,000 introduced by the commission.

There would also be a significant improvement in the salaries of Brigadiers as the government has agreed to put them in Pay Band 4 (Rs 39,200-67,000) as against the suggested pay band 3 (Rs 15,600 - 39,100).

For the Indian Police Service and Indian Forest Service, relief would come in the form of abolition of the Deputy Inspector General scale. There would also be no discrimination between Group B and Group A service officers in the form of a differential basic pay at the time of joining, as suggested by the Commission. They would both start at the same scale, as is prevalent now, said sources.

Key Points :

  • A 20 % raise over the pay bands suggested by the Commission
  • Uniform 3% raise in basic pay every year. The norm is a Rs 500-increase annually within grade scale
  • New wages to be effective from January 2006
  • No Cabinet Secretary rank for Intelligence Bureau chief, the three Service chiefs or the Chairman, Railway Board
  • Group D personnel to stay (peons in ministries and porters in Railways)
  • Military service pay for persons below the officer rank (POBR) would be Rs 2,000 per month
  • Significant hike in salaries of Brigadiers: they move to Pay Band 4 (Rs 39,200-67,000) from the suggested Pay Band 3 (Rs 15,600-39,100)
  • DIG-scale abolished in IPS and Indian Forest Service

(Indian Express 14/08/08 Delhi Edition)

6 comments:

  1. Anonymous1:30 PM

    Cabinet approves Sixth Pay Commission report
    NDTV Correspondent
    Thursday, August 14, 2008, (New Delhi)
    The Union Cabinet on Thursday approved recommendations of Sixth Pay Commission. The pay panel recommendations will come into effect from January 1, 2006.

    Arrears will be paid in cash in two installments: 40 per cent will be paid this year and the rest next year.

    Now, minimum basic pay of a government employee has been raised to Rs 7000.

    ReplyDelete
  2. Anonymous4:32 PM

    Transport Allowance put to minimum as Rs.600/-. This seems to be very megre compared to others. It should be atleast 1000 to lower grades.

    ReplyDelete
  3. Anonymous8:02 PM

    Im very surprised at this talk of service chiefs not receiving the same rank as Cab Secretary. Theyve always had the same pay scale. I dont know what this reporter is talking about, but the Cabsec and service chiefs are all in the scale of 90000 (fixed).

    ReplyDelete
  4. Anonymous8:03 PM

    Im very surprised at this talk of service chiefs not receiving the same rank as Cab Secretary. Theyve always had the same pay scale. I dont know what this reporter is talking about, but the Cabsec and service chiefs are all in the scale of 90000 (fixed).

    ReplyDelete
  5. REMOVAL OF DISPARITIES OF DEFENSE PERSONNEL.
    1. It may be noted that the defense services persons, while putting across their grievances while quoting pay parities, they never mean any thing against the IAS officers, Para Military Services officers or any one else. Rather, they are happy to note that all these officers have been given their legitimate due for which they are fully satisfied.
    2. It is needless to emphasize that the financial benefits to the defense persons definitely have to be kept in mind. This is emphatically important considering their service conditions and low retirement age. However, may they be officers or PBOR, their prestige, dignity and honor is rather that of more importance, which must not be compromised, destroyed, degraded and tarnished as has been done in the notified 6th Pay Commission Report. This statement is evident from the fact that the seniority and status of all the Govt. employees will be determined by the Grade Pay of all the officials in accordance with the 6th pay commission report.
    3. Nevertheless, the three Chiefs of Defense Services have pointed out the Pay Parities with vivid disparities in the Gde. Pay of some of the defense officers of the rank of Lt. Cols., Lt. Gens. and equivalent ranks of all three services, especially in comparison to IAS Officers and Para Military Officers. It has been categorically pointed out by the three Chiefs of Defense Services, the proposed pay parities will have adverse effects during the joint operations.
    4. With due apology, this is to point out that in addition to the above disparities, there are still number of more grave disparities in the cases of officers of the ranks of Majors, captains and Lieutenants, and equivalent ranks of all three services as well as trainees of these services.
    5. You may kindly see that the pre-revised scales of pay of civil services officers falling in S-21, S-22, and S-23 and equivalent posts of officers of Para Military Forces were much less then the pay scale of Majors and equivalent ranks of all three services. Irrespective of this fact; in accordance with the 6th pa commission report notifications, the Civilian Officers of the categories mentioned ibid are given the Grade Pay of Rs. 7600/-, where as all officers of the rank of Majors and equivalent ranks of all three services have been given the Grade pay of Rs. 6600/- only. Further, the Chief Nursing Officers of Para Military Services, the Principals of schools, Education Officers, Assistant Directors and Managers, whose pre-revised scales were 10000-15200; all of them have now been given the Grade Pay of Rs. 7600/-, whereas, the officers of the rank of Majors and equivalent ranks of all three services, earlier drawing much higher pay scale than them, have been given the Grade pay of Rs. 6600/- only.
    6. The degradation of Defense Services Officers does not end here itself. If you peruse the VI CPC report and notifications thereto. You will see that the ‘Vice Principal Grade I’ and Post Graduate Teacher Grade I of schools whose pre-revised scale was 8000-13200 are now given the Grade Pay of Rs. 6600/-, but in the case of the officers of the rank of Captains and equivalent ranks of all three services, whose pre-revised pay was much higher than the officials mentioned above are given Grade Pay of 6100/- only. Likewise, the pre-revised pay scale of the officers of the rank of Lieutenants and equivalent ranks of all three services was starting from Rs 8250/ which is more than the officials mentioned ibid, their Grade Pay is given just Rs. 5400/- only.
    7. It is emphatically and forcefully verbalized that all the Pay Bands and Grade pay given to the Defense Officers should be made applicable to them after rendering the same period of service as that is applicable to the IAS Officers and Para Military Officers. There must not be any discrimination in this regard.
    8. Further, it may be seen that when any officers or officials of Central or State Govt. join any service in any post, they start getting their full pay and allowances from the day they join the service. Their entire service is counted for increments, promotions and retirement from the first very day. They are paid their full pay and allowances and all other benefits of service during their training period, irrespective of duration of their training. Contrary to this, the Officers and PBOR of Defense services are paid just stipend only during the period of their initial training. Also, this period is not counted for giving increments, promotions and retirement. Such a big discrimination and injustice must not be done to the defense services personnel alone.
    9. The 6th Pay Commission and the Govt. has very kindly recommended and accepted the prolonged and long standing/awaited demand of Military Service Pay (‘MSP’) of defense personnel. But, it is highly unjustified as to why the MSP should not be applicable w. e. f. the day, the 6th pay commission is effective. Were the soldiers not the part of defense forces and/or they have not been performing their duties from 1 Jan 2006 onward? If they are legitimate part of defense forces and have been performing their duties since 1 Jan 2006 and the 6th Pay commission is since effective from 1 Jan 2006, the MSP must be given to them w.e.f that very date and the arrears whatever may be due, should be paid accordingly.
    10. Further, Military Service Pay is since the Pay, it is highly illogical not to consider it to calculate dearness allowance and increments on this pay. It may be noted that the Central Govt. has agreed to pay dearness allowance on the Transport Allowance. It is surprising to note that when the tpt. allowance is an allowance and not the pay, the dearness allowance is permitted on it, but the MSP is the Pay, yet, it is not considered for the purpose. Hence, the Govt. must reconsider its decision to pay dearness allowance on MSP as well as, it must be included to calculate increments w.e.f. 01 Jan 2006 please.
    11. One Rank One-Pension issue has been long outstanding. This matter is most judicious and deserving since the service personnel including officers retire at a very early age and none of them finds any avenues for discharging their entire responsibilities and living after their retirement. They are totally dependent on their pension only.
    12. At the time of implementation of pay commission report, there occurs a big disparity in the pension of present and previously retired ex-service persons retired from the same rank. The pension of presently retired person is fixed based on 50% of last 10 months average pay after rendering total period of service by him. In the case of persons retired before the implementation of pay commission report, their pension is re-fixed based on minimum of the new pay scale of the rank/post from which they retired, irrespective of any amount of period of service they had rendered before their retirement. The entire period of service they rendered before their retirement is completely ignored. Consequently, there becomes a wide gap of eligibility of pension between the present/future and previously retired persons, though in both cases, they retired or will retire from the same rank. This is absolutely in contravention to the Apex Court’s recent decision. Considering this fact as well as Apex court judgement, the authorities must bear in mind the rank and period of rendered service while re-fixing the pension of all persons who retired before implementation of pay commission report. In accordance with this analogy, the authorities must consider the pensionable pay of a serving person after the period of service that was rendered by a retired person for re-fixing his pension on implementation of any pay commission report. If pension is ever re-fixed against this principle, it will be contrary to the Apex Court judgement.
    13. Previously, the defense service officers, who could not get selection grade rank of Lt. Col and equivalents rank; they used to get this rank after rendering 21 years of service. Such officers were denied rank pay of Lt. Col and their pension was fixed without including the rank pay of this rank. It is of utmost importance to note that presently, all officers of defense services attain the rank of time scale Lt. Col after rendering 13 years of service, and they are entitled full pension, considering their basic pay and rank pay. Further, after implementation of sixth pay commission report, they will get their full pension after including running pay of applicable “band pay, grade pay and MSP’. The previously retired officers since attain the rank in question after 21 years and present ones, get this rank after 13 years, there must not be any discrimination in the past and present officers of the rank of Lt. Col. while fixing/re-fixing the pension in either case.
    14. The present minimum service required for officers to be eligible for pension is 20 years. The short service commissioned officers, who are asked to leave service after 10/14 years, are not eligible for pension. The pension for such officers should be considered, though it may not be full pension as is applicable for the officers who retire after rendering 20 years or more service. It can be commensurately less in comparison to minimum 20 years requirement. However, such short commissioned officers, who voluntarily seek retirement after stipulated period or before 20 years may not be considered for this purpose.
    15. In view of the foregoing, a most sincere and earnest appeal is made to the Prime Minister, External Affairs minister, who is the Chairman of special review committee for the purpose, Defense Minister, Finance Minister and all other authorities to do justice to the Defense Officers and PBOR of all three services to look into the matter judiciously, restore their status and dignity and give them their due as suggested below:-
    (a). In the cases of Lt. Generals, Lt. Colonels and PBOR, as taken up by the Chiefs of three Defense Services.
    (b). In the case of the officers of the rank of Majors and equivalent ranks of all three services, the Grade pay of Rs. 7600/- be given.
    (c). In the case of the officers of the rank of Captains and equivalent ranks of all three services, the Grade pay of Rs. 6600/- be given.
    (d). In the case of the officers of the rank of Lieutenants and equivalent ranks of all three services, the Grade pay of Rs. 6100/- be given.
    (e). Give full pay, allowances and Grade Pay to all the Officers and PBOR of Defense services during the period of their initial training as is being done in the case of other Central and State Govt. Officials.
    (f). The Pay Bands and Grade pay given to the Defense Officers should be made applicable after rendering the same period of service as that is applicable to the IAS Officers and Para Military Officers. There must not be any discrimination in this regard.
    (g). In accordance with Hon’ able Apex Court’s recent decision; the Govt. must bear in mind to ensure to fix the pension of officers previously retired or retiring hereafter in the same rank of Lt Col. may it be time scale or previous selection grade or any other same rank without any discrimination.
    (h). The short service commissioned officers, who are asked to leave service after rendering 10/14 service years, be made eligible for pension, which may be commensurately less in comparison to 20 years.
    (i). Considering the fact explained at Para 12 above as well as recent Apex Court judgement, the authorities must bear in mind the rank and period of rendered service while re-fixing the pension of all persons who retired before implementation of pay commission report. In accordance with this analogy, the authorities must consider total pensionable pay of a serving person after the period of service that was rendered by a retired person for re-fixing every retired person’s pension on implementation of any pay commission report.
    17. If suggestions above are accepted, it is assured that it will have great impact to raise the morale of Defense Services Personnel and attract desired, rather better talents to join Military Services, thus huge vacancies of officers, existing since long, will be made up. This will prove to be in the best interest of the nation and national security.
    Thanks.
    Yours truly,
    Jassu

    ReplyDelete
  6. REMOVAL OF DISPARITIES OF DEFENSE PERSONNEL.
    1. It may be noted that the defense services persons, while putting across their grievances while quoting pay parities, they never mean any thing against the IAS officers, Para Military Services officers or any one else. Rather, they are happy to note that all these officers have been given their legitimate due for which they are fully satisfied.
    2. It is needless to emphasize that the financial benefits to the defense persons definitely have to be kept in mind. This is emphatically important considering their service conditions and low retirement age. However, may they be officers or PBOR, their prestige, dignity and honor is rather that of more importance, which must not be compromised, destroyed, degraded and tarnished as has been done in the notified 6th Pay Commission Report. This statement is evident from the fact that the seniority and status of all the Govt. employees will be determined by the Grade Pay of all the officials in accordance with the 6th pay commission report.
    3. Nevertheless, the three Chiefs of Defense Services have pointed out the Pay Parities with vivid disparities in the Gde. Pay of some of the defense officers of the rank of Lt. Cols., Lt. Gens. and equivalent ranks of all three services, especially in comparison to IAS Officers and Para Military Officers. It has been categorically pointed out by the three Chiefs of Defense Services, the proposed pay parities will have adverse effects during the joint operations.
    4. With due apology, this is to point out that in addition to the above disparities, there are still number of more grave disparities in the cases of officers of the ranks of Majors, captains and Lieutenants, and equivalent ranks of all three services as well as trainees of these services.
    5. You may kindly see that the pre-revised scales of pay of civil services officers falling in S-21, S-22, and S-23 and equivalent posts of officers of Para Military Forces were much less then the pay scale of Majors and equivalent ranks of all three services. Irrespective of this fact; in accordance with the 6th pa commission report notifications, the Civilian Officers of the categories mentioned ibid are given the Grade Pay of Rs. 7600/-, where as all officers of the rank of Majors and equivalent ranks of all three services have been given the Grade pay of Rs. 6600/- only. Further, the Chief Nursing Officers of Para Military Services, the Principals of schools, Education Officers, Assistant Directors and Managers, whose pre-revised scales were 10000-15200; all of them have now been given the Grade Pay of Rs. 7600/-, whereas, the officers of the rank of Majors and equivalent ranks of all three services, earlier drawing much higher pay scale than them, have been given the Grade pay of Rs. 6600/- only.
    6. The degradation of Defense Services Officers does not end here itself. If you peruse the VI CPC report and notifications thereto. You will see that the ‘Vice Principal Grade I’ and Post Graduate Teacher Grade I of schools whose pre-revised scale was 8000-13200 are now given the Grade Pay of Rs. 6600/-, but in the case of the officers of the rank of Captains and equivalent ranks of all three services, whose pre-revised pay was much higher than the officials mentioned above are given Grade Pay of 6100/- only. Likewise, the pre-revised pay scale of the officers of the rank of Lieutenants and equivalent ranks of all three services was starting from Rs 8250/ which is more than the officials mentioned ibid, their Grade Pay is given just Rs. 5400/- only.
    7. It is emphatically and forcefully verbalized that all the Pay Bands and Grade pay given to the Defense Officers should be made applicable to them after rendering the same period of service as that is applicable to the IAS Officers and Para Military Officers. There must not be any discrimination in this regard.
    8. Further, it may be seen that when any officers or officials of Central or State Govt. join any service in any post, they start getting their full pay and allowances from the day they join the service. Their entire service is counted for increments, promotions and retirement from the first very day. They are paid their full pay and allowances and all other benefits of service during their training period, irrespective of duration of their training. Contrary to this, the Officers and PBOR of Defense services are paid just stipend only during the period of their initial training. Also, this period is not counted for giving increments, promotions and retirement. Such a big discrimination and injustice must not be done to the defense services personnel alone.
    9. The 6th Pay Commission and the Govt. has very kindly recommended and accepted the prolonged and long standing/awaited demand of Military Service Pay (‘MSP’) of defense personnel. But, it is highly unjustified as to why the MSP should not be applicable w. e. f. the day, the 6th pay commission is effective. Were the soldiers not the part of defense forces and/or they have not been performing their duties from 1 Jan 2006 onward? If they are legitimate part of defense forces and have been performing their duties since 1 Jan 2006 and the 6th Pay commission is since effective from 1 Jan 2006, the MSP must be given to them w.e.f that very date and the arrears whatever may be due, should be paid accordingly.
    10. Further, Military Service Pay is since the Pay, it is highly illogical not to consider it to calculate dearness allowance and increments on this pay. It may be noted that the Central Govt. has agreed to pay dearness allowance on the Transport Allowance. It is surprising to note that when the tpt. allowance is an allowance and not the pay, the dearness allowance is permitted on it, but the MSP is the Pay, yet, it is not considered for the purpose. Hence, the Govt. must reconsider its decision to pay dearness allowance on MSP as well as, it must be included to calculate increments w.e.f. 01 Jan 2006 please.
    11. One Rank One-Pension issue has been long outstanding. This matter is most judicious and deserving since the service personnel including officers retire at a very early age and none of them finds any avenues for discharging their entire responsibilities and living after their retirement. They are totally dependent on their pension only.
    12. At the time of implementation of pay commission report, there occurs a big disparity in the pension of present and previously retired ex-service persons retired from the same rank. The pension of presently retired person is fixed based on 50% of last 10 months average pay after rendering total period of service by him. In the case of persons retired before the implementation of pay commission report, their pension is re-fixed based on minimum of the new pay scale of the rank/post from which they retired, irrespective of any amount of period of service they had rendered before their retirement. The entire period of service they rendered before their retirement is completely ignored. Consequently, there becomes a wide gap of eligibility of pension between the present/future and previously retired persons, though in both cases, they retired or will retire from the same rank. This is absolutely in contravention to the Apex Court’s recent decision. Considering this fact as well as Apex court judgement, the authorities must bear in mind the rank and period of rendered service while re-fixing the pension of all persons who retired before implementation of pay commission report. In accordance with this analogy, the authorities must consider the pensionable pay of a serving person after the period of service that was rendered by a retired person for re-fixing his pension on implementation of any pay commission report. If pension is ever re-fixed against this principle, it will be contrary to the Apex Court judgement.
    13. Previously, the defense service officers, who could not get selection grade rank of Lt. Col and equivalents rank; they used to get this rank after rendering 21 years of service. Such officers were denied rank pay of Lt. Col and their pension was fixed without including the rank pay of this rank. It is of utmost importance to note that presently, all officers of defense services attain the rank of time scale Lt. Col after rendering 13 years of service, and they are entitled full pension, considering their basic pay and rank pay. Further, after implementation of sixth pay commission report, they will get their full pension after including running pay of applicable “band pay, grade pay and MSP’. The previously retired officers since attain the rank in question after 21 years and present ones, get this rank after 13 years, there must not be any discrimination in the past and present officers of the rank of Lt. Col. while fixing/re-fixing the pension in either case.
    14. The present minimum service required for officers to be eligible for pension is 20 years. The short service commissioned officers, who are asked to leave service after 10/14 years, are not eligible for pension. The pension for such officers should be considered, though it may not be full pension as is applicable for the officers who retire after rendering 20 years or more service. It can be commensurately less in comparison to minimum 20 years requirement. However, such short commissioned officers, who voluntarily seek retirement after stipulated period or before 20 years may not be considered for this purpose.
    15. In view of the foregoing, a most sincere and earnest appeal is made to the Prime Minister, External Affairs minister, who is the Chairman of special review committee for the purpose, Defense Minister, Finance Minister and all other authorities to do justice to the Defense Officers and PBOR of all three services to look into the matter judiciously, restore their status and dignity and give them their due as suggested below:-
    (a). In the cases of Lt. Generals, Lt. Colonels and PBOR, as taken up by the Chiefs of three Defense Services.
    (b). In the case of the officers of the rank of Majors and equivalent ranks of all three services, the Grade pay of Rs. 7600/- be given.
    (c). In the case of the officers of the rank of Captains and equivalent ranks of all three services, the Grade pay of Rs. 6600/- be given.
    (d). In the case of the officers of the rank of Lieutenants and equivalent ranks of all three services, the Grade pay of Rs. 6100/- be given.
    (e). Give full pay, allowances and Grade Pay to all the Officers and PBOR of Defense services during the period of their initial training as is being done in the case of other Central and State Govt. Officials.
    (f). The Pay Bands and Grade pay given to the Defense Officers should be made applicable after rendering the same period of service as that is applicable to the IAS Officers and Para Military Officers. There must not be any discrimination in this regard.
    (g). In accordance with Hon’ able Apex Court’s recent decision; the Govt. must bear in mind to ensure to fix the pension of officers previously retired or retiring hereafter in the same rank of Lt Col. may it be time scale or previous selection grade or any other same rank without any discrimination.
    (h). The short service commissioned officers, who are asked to leave service after rendering 10/14 service years, be made eligible for pension, which may be commensurately less in comparison to 20 years.
    (i). Considering the fact explained at Para 12 above as well as recent Apex Court judgement, the authorities must bear in mind the rank and period of rendered service while re-fixing the pension of all persons who retired before implementation of pay commission report. In accordance with this analogy, the authorities must consider total pensionable pay of a serving person after the period of service that was rendered by a retired person for re-fixing every retired person’s pension on implementation of any pay commission report.
    17. If suggestions above are accepted, it is assured that it will have great impact to raise the morale of Defense Services Personnel and attract desired, rather better talents to join Military Services, thus huge vacancies of officers, existing since long, will be made up. This will prove to be in the best interest of the nation and national security.
    Thanks.
    Yours truly,
    Jassu

    ReplyDelete