Read Full report of Pay Commision

Complete report of Pay commission is available at http://finmin.nic.in/7cpc/7cpc_report_eng.pdf

Pay Commission Report Today evening 7.30 PM

The official 7th Pay Commission web site says :

The Commission has completed its deliberations and will submit the report to the Government of India on 19.11.2015 at 19:30 hours

Now CPWD Engineers want salary parity

After ex-servicemen, it is now the turn of CPWD engineers to register their disgruntlement over lack of pay parity with other all India services like IAS and IFS.

In a letter to the PM, the Central Engineering Services Group A Association has talked about the disconnect between the crucial role of engineers in making Congress’s development poll plank a reality, their importance for preparation of Commonwealth Games and the fact that their demands have been pending for so long. ‘‘The present election is being fought on the plank of development. It is rather unfortunate that the officers in government who have been contributing in development on a very rich scale are getting neglected and are demoralized progressively,’’ the letter dated April 13 reads.

The sixth pay commission had recommended pay parity for engineers with other services with a twoyear gap and the government had accepted that recommendation in August last year but a formal order is yet to be implemented.

(Time of India, Delhi - 15/04/2009)

Armed Forces grievance to Prime Minister

In a rare departure, Navy Chief Admiral Sureesh Mehta has taken the Armed Forces grievance on the pay panel to Prime Minister Manmohan Singh. The Admiral, who is also Chairman of the Chiefs of Staff Committee, met the PM late on Thursday night and brought up ‘core issues’ in the pay commission relating to lowering of pay scales of Defence personnel in comparison to their civilian counterparts.

It is learnt that while Mehta visited the PM to brief him on his recent visits to Japan and South Korea, the issue of anomalies in the pay commission that has led to the ‘lowering of status of Defence officers and men’ was brought up at the end of the meeting.

The Navy chief handed over a detailed representation to the Prime Minister highlighting the perceived anomalies and once again sought the intervention of the Union Cabinet to resolve the issues.

The incident may lead to a little embarrassment for the Defence Ministry that had earlier raised objections over a letter written by the Army Chief to President Pratibha Patil over the pay panel.

“The focus was on the core issues of lowering of status of Defence personnel that will infringe on operational aspects in the field where officers will need to interact with their civil counterparts,” a senior officer said.

The main problem being a lowering of parity of Lt Col and equivalent officers with their counterpart in the paramilitary forces. With the new pay panel norms, central paramilitary officers who were till now ranked lower to Armed Forces officers have been placed in a higher pay band.

On Monday, the three service chiefs had met Defence Minister A K Antony and urged him for the intervention of the Cabinet, rather than a committee to consider its demands on the pay panel report.

In a letter to the Defence Minister, Mehta had said any disruption in the existing parities of pay would lead to serious operational problems for the Armed Forces whenever they would need to work along with paramilitary and civilian officers.

The Armed Forces are angry over the ‘degradation’ of officers of the rank of Lt Cols who have been placed in the Pay Band 3, a grade lower than the PB 4 that their civilian counterparts have been given. They have also demanded that Lt Gen rank officers should be put in the new Pay Band of Higher Administrative Grade (HAG) Plus, in which Director General level officers of civil services and paramilitary have been placed.

(Indian Express Delhi edition 06/09/08)

Committee of Secretaries to study CPC recommendations.

The government on Friday announced the constitution of a high-level official committee of secretaries to study and review the report of the Sixth Pay Commission.

The committee will be headed by the Cabinet Secretary K M Chandrasekhar and has been directed to submit its report to the Cabinet at the earliest possible.

The 12 member committe will comprise secretaries of ministries of home, defence, revenu and expenditure, department of post, security, deputy CAG and financial commissioner and member secretary of the Railway Board.

The committee will mainly function as a screening committee for the pay panel's report and submit its final recommendations to the Cabinet for approval.

The Government has already constituted a committee headed by Finance Secretary D Subbarao to look into the grievances of armed forces and IPS officers.

Service Chiefs to meet Minister

With anger mounting over the ‘‘raw deal’’ given to them by the Sixth Central Pay Commission, the armed forces are planning to petition the government to ensure officers and jawans get better pay packages than the ones recommended. The matter is likely to be raised when Admiral Sureesh Mehta, General Deepak Kapoor and Air Chief Marshal F H Major meet defence minister A K Antony on Thursday.

Admiral Mehta said, ‘‘There are always anomalies in the pay commissions, which need to be corrected. We will take it up directly with the pay commission.’’ General Kapoor, in turn, said, ‘‘We are studying the proposals... We will come out with cogent suggestions to the defence ministry. There is always scope for improvement in everything.’’

While the recommendation for a special ‘military service pay’ (MSP) has been welcomed, the huge difference between Rs 6,000 as MSP for officers and only Rs 1,000 for jawans, NCOs and JCOs has attracted sharp criticism.

(Based on News Paper reports)

Unions preparing demonstration

Two days after the Sixth Pay Commission submitted its report to the Finance Minister, employee unions organised demonstration and preparing for more demonstration against the recommendations.

The Confederation of Central Government Employees (CCGE) dubbed the report “totally unacceptable”, the CSSS Gazetted Officers’ Association (CSSSGOA) called for a review as “there are unreasonable differentiations made between the same running pay bands and even the instrument of grade pay has not been able to neutralise the impact”.

The Central Secretariate Non-Gazetted Employess Union organised a demonstration out side Krishi Bhawan on Wednesday terming the recommendations as betrayal of the right of the workers. "We are just getting 10.4 hike which is totally unjustified" said Dalip Singh, general Secretaty of the union.

“The alarming level of growing disparity can be seen between the recommended pay scales. After having a look at the minimum Rs 2,550 (total Rs 5,740) and the highest pay (Rs 90,000), we find that the minimum is only about 6.4% of the maximum,” CSSSGOA president R S Rawat said in a draft memorandum prepared for employees’ preview. “Therefore 1:12 (minimum-maximum pay ratio) is not a reasonable formula when tested on democratic principles of equity, justice and good governance.”

(Based on News Paper reports)

CPC report dissapoints employees

Now that the Sixth Pay Commission report is submitted to the Government and the complete report is available at http://www.india.gov.in/govt/paycommission.htm, at least wait time for report is over. Only implementation part is required. Now since every point is clear, reading the comments in this blog, it seems that most of Central Government Employees are not satisfied with the report. Most of the Group C & D employee are feeling let down. Only Senior class A officers got good pay, but even that is very small compared to corresponding Private Sector pay packaets of Senior Managers/MDs. There are many shocker in report for employess.


Even media, which till yesterday was making noise about increase in the pay in the range of 40%-60% is now realising that the actual increase is much less than that. Times of India , Dainik Jagran and Indian Express have come up with stories of this nature in today's edition.

Pay Commission Report Details

The Sixth Central Pay Commission submitted its Report to the Government on 24th March, 2008. The Report and main highlights can be viewed through the following links:

• Highlights of the Report
• Report of the Sixth Central Pay Commission
• Annex to the Report of the Sixth Central Pay Commission

Pay Commission Submits Report

Over 4 lakh central government employees are now a step closer to getting higher salaries.

The much-awaited report of the sixth Pay Commission has been submitted to the finance ministry by Justice Srikrishna who heads the commission.

Details are yet not available.

(Source : www.ndtv.com)

Times of India report

Like earlier reports and same salary prediction patterns, Times of India has also predicted upto 42% without HRA and upto 52% with HRA hike in the salary of Central Government Staff. It has predicted that the final report will be submitted on Tuesday. Read full report here.

42% hike in salary : Indian Express

There will be 42% hike in the salary, reported Indian Express Delhi edition today.  It has predicted report will be submitted tomorrow i.e. 20/03/08.

Key point of the Indian Express report:

• Number of salary grades will be pruned to 18 from the existing 33,
• Salary proposed is 35 to 42% higher than what each employee currently gets, inclusive of dearness pay and dearness allowance.
• The house rent allowance will become city-specific with those living in metros getting the full 30% of the basic salary. But for other towns, the HRA could be capped at 15% of the basic salary.

Read full report at http://www.indianexpress.com/story/286200.html

Report after Holi : Times of India

Time of India has predicted in its report that the final report of the CPC is ready and  will be out any day after Holi.

Lakhs of central government employees will know their new salary scales any day after Holi as the Sixth Pay Commission is almost ready with its final report, subject to some possible changes in the wake of formal or informal interactions with finance ministry. 
   Commission sources, however, remained tightlipped on the quantum of salary hike. “It is a closely guarded secret at our highest levels and may undergo last-minute changes,” they said. 
   The sources, however, indicated a “moderate” jump despite the soaring hopes of most government employees — ranging from 20% to 120% of their present gross emoluments — when corporate salaries are at an all-time high. “The finance minister has said that ‘legitimate expectations’ of government employees would be met. The commission, in consultation with the finance ministry, has to ensure that their definitions of ‘legitimate expectations’ do not clash. This, because the money, after all, will be provided by a tight-fisted finance ministry,” the sources said. 
   The new scales would also decide the emoluments of defence and paramilitary forces, besides post-retirement benefits of all employees and officers, including the pension they would draw. That the countdown has begun was indicated in the Rajya Sabha on Tuesday when minister of state for finance, P K Bansal, said that no proposal for grant of interim relief to the employees was under government’s consideration. The government has recently hiked the employees’ DA from 41% to 47%, calculated on their basic pay taken with 50% (of basic) merged dearness pay. 
   Figures apart, the commission has taken the help of three leading institutes to work out exhaustive compensation and pension regimes. IIM-A has done a study on the feasibility of performancerelated pay (PRP) to government employees while XLRI-Jamshedpur has advised on the total cost incurred by government on its employees in all grades (equivalent of the corporate cost-to-company). 
   The third study, done by Institute of Social and Economic Change (Bangalore), has focused on the government’s oft-stated principle of reducing its post-retirement liabilities in the “long-term”.

(Published in Time of India dated 19/03/08 Delhi edition)

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%

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

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.

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

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.

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.