Monday, August 18, 2008

Government rules out compulsory military service for youths




The Tatal Reports Of The Sixth Pay Commission

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Government approve the pay pannel report


Civil servants, armed forces and paramilitary personnel will get to rejoice this Independence Day with the Central Cabinet approving the Sixth Pay Commission report in its Cabinet meeting today. Further Details awaited.

Union Cabinet Approval: the offcial press release

The union cabinet today announced the implementation of the recommendations of the pay commission for all central government employees, including the defence services personnel. The two-page official press communiqué can be downloaded at http://pib.nic.in/archieve/others/2008/aug/r2008081405cab.pdf

The details given in the above press release are strewn all over the media. However, one has to await a detailed government notification to work out the fine print of the implementable recommendations.


Sixth Pay Commission Report: What will employees get on April 4, 2008

The government has declared that the Sixth Pay Commission would submit its report by April 4, 2008. In a written reply to the Rajya Sabha, Mr. P K Bansal, the Minister of State for Finance said, �The Commission is to finalise and submit its report within 18 months of its constitution, that is 4th April, 2008.�

About effectuation of the Pay Commission�s suggestions, Mr. Bansal stated, �Since the report is to be submitted, the time frame for its implementation cannot be stated.�

Regarding the terms of reference of the Sixth Pay Commission, he said that the Commission was analyzing the interest and requirement to approve any interim relief until its commendations were completed.

Employees can expect a decent rise in salary as the Elections are coming near. Government may not miss this chance to give additional benefits to employees in all pay scales to grab a bigger vote bank. The salary increase in Sixth Pay commission report 2008 may bring cheer among various government departments.

The new 6th pay commission pay scale table may also result in increase in salary for employees in private sector. Big companies are paying well but there are still many workers in small companies who are finding it very difficult to run their house on meagre income.

On media reports regarding big increase in salaries of civil service staff, Mr. Bansal told that the Commission is yet to settle down and present its report, so the media might be doubtful.

In October 2006, the Sixth Pay Commission was formed to suggest comprehensive changes in salary structure of the government employees.

It would also provide suggestions regarding the pay arrangement of government workers including industrial as well as non- industrial central government employees, Armed Forces personnel, All India Services, and employees in the Union Territories.

Additionally, the Commission would study the pay structure for Indian Audit and Accounts Department, regulatory bodies establish by Act s in the Parliament and Supreme Court employees, Mr. Bansal said.

Central 6th pay commission scales may trigger state governments to offer salary hike to their employees. The expectations are higher and things may be clear by April 4, when the expected pay scale tables 2008 under VIth pay commission will be unveiled.

Sixth Pay Commission pay scale revision
Indian Economy is booming and the prices have been rising for the past two years at a much faster rate. The price of Real estate is rising. A common man can’t buy a house unless he takes a huge loan. The loan he will need all his life to re-pay.

There are shopping malls coming up (which are only increasing the spending of middle income groups).

The stock markets witnessed a very fast increase in valuations in year 2007. The start of 2008 wasn’t good for Indian markets, but still many stocks are near their all time highs.

The government should revise the pay scales for Government employees with the Sixth Pay commission recommendations at the earliest. The cost of living for every household is rising with every passing day. The wages for government employees are the same.

Sixth Pay Commission has been set up to revise the pay scales for the following category of employees

(a) Central government employees – industrial and non-industrial
(b) Personnel belonging to the All India Services
(c) Personnel belonging to the Armed Forces
(d) Personnel of the Union Territories
(e) Officers and employees of the Indian Audit and Accounts Department
(f) Officers and employees of the regulatory bodies set up under Acts of Parliament.

Persons working in private companies are getting paid much more. I can agree that they work a lot and offer a good value of work for the money paid to them.

Indian government employees should be offered decent salary based on the work they are doing.

It will be good to keep the age of retirement at 58. Making it 60 isn’t a very wise decision while many government departments came up with VRS scheme recently. Chance should be given to the young generation. Most of them are only working in some private companies or have left India for better wages abroad.

The sixth pay commission may cause a big burden on government, but the employees have not seen revision for pay scales for a long time.

The address for communication for the VI pay commission is

Sixth Central Pay Commission
2nd Floor, ICADR Building ,Plot No.6, Vasant Kunj Institutional Area, Phase II New Delhi-110070.

Inquiries and suggestions can also be sent to >> PO Bag No.001, Vasant Kunj Post Office, New Delhi-110070

Sixth Pay Commission Report: What will employees get on April 4, 2008

The government has declared that the Sixth Pay Commission would submit its report by April 4, 2008. In a written reply to the Rajya Sabha, Mr. P K Bansal, the Minister of State for Finance said, �The Commission is to finalise and submit its report within 18 months of its constitution, that is 4th April, 2008.�

About effectuation of the Pay Commission�s suggestions, Mr. Bansal stated, �Since the report is to be submitted, the time frame for its implementation cannot be stated.�

Regarding the terms of reference of the Sixth Pay Commission, he said that the Commission was analyzing the interest and requirement to approve any interim relief until its commendations were completed.

Employees can expect a decent rise in salary as the Elections are coming near. Government may not miss this chance to give additional benefits to employees in all pay scales to grab a bigger vote bank. The salary increase in Sixth Pay commission report 2008 may bring cheer among various government departments.

The new 6th pay commission pay scale table may also result in increase in salary for employees in private sector. Big companies are paying well but there are still many workers in small companies who are finding it very difficult to run their house on meagre income.

On media reports regarding big increase in salaries of civil service staff, Mr. Bansal told that the Commission is yet to settle down and present its report, so the media might be doubtful.

In October 2006, the Sixth Pay Commission was formed to suggest comprehensive changes in salary structure of the government employees.

It would also provide suggestions regarding the pay arrangement of government workers including industrial as well as non- industrial central government employees, Armed Forces personnel, All India Services, and employees in the Union Territories.

Additionally, the Commission would study the pay structure for Indian Audit and Accounts Department, regulatory bodies establish by Act s in the Parliament and Supreme Court employees, Mr. Bansal said.

Central 6th pay commission scales may trigger state governments to offer salary hike to their employees. The expectations are higher and things may be clear by April 4, when the expected pay scale tables 2008 under VIth pay commission will be unveiled.

Sixth Pay Commission Report May Bring Cheers To Central Govt Employees

The eyes of the central government employees will be firmly glued on the forthcoming 6th Pay Commission Pay Scale, which is likely to be announced on Friday, Aug 15.

The central government has sanctioned the setting up of the sixth pay commission to revise salary structures plus other perks for its 5.5 million staff across the country.

The sixth pay commission is estimated to cost the government an additional Rs 20,000 crore.

The Centre assured that the sixth pay commission report would be "beneficial" for the employees as administration is keen to provide comprehensive and fine salary packages to attract quality human resource.

The upcoming pay commission would give recommendations regarding the pay structure of government employees including industrial as well as non- industrial central government employees, all-India services, armed forces personnel and employees in the Union Territories.

Moreover, the commission would consider the pay structure for Indian audit and accounts department, regulatory bodies established by Acts in Parliament and Supreme Court employees.

Normally, a central government employee’s total salary comprises a basic salary, a 51% dearness pay along with basic and a 41% dearness allowance of the total.

The sixth pay Commission will result in a hike of 28% in basic salary of central government staff in various categories. The central 6th pay commission scales may also help employees to fight with the growing inflation.

The expected pay scale table of the sixth pay commission pay structure may also result in a decent increase in the salaries of employees working in private sector.

A high level meeting on Wednesday led by Prime Minister Dr. Manmohan Singh along with External Affairs Minister Pranab Mukherjee, Defence Minister AK Antony and Union Finance Minister P Chidambaram discussed the pay commission information and the suggestions of the empowered group of Secretaries that entered the anomalies and other subjects.

A senior Union minister said that Cabinet is ready to sanction the Sixth Pay Commission recommendations today.

The commission had recommended several changes like staggered timings for women, introduction of performance related incentives, forcing central para-military services to recruit personnel from ex-servicemen after they complete 17 years of service in the armed forces and cutting down the number of gazetted holidays after nearly 17 days to three.

But all things get cleared after the submission of the sixth commission report

Pay Commission recommends hefty increase in salaries of government employeess


New Delhi, Mar 24 : The Sixth Pay Commission headed by Justice B. N. Srikrishna has recommended a hefty increase in salaries with effect from January 1, 2006 for as many as 4.5 million central government employees.

The Commission�s recommendations, submitted to Union Finance Minister P. Chidambaram this morning, would cost the exchequer Rs 12,561 crore in 2008-09 and impose an arrear payout burden of Rs 18,060 crore on the Government.

The pay panel proposals revised pays that fixed the salary of the Cabinet Secretary at Rs 90,000 a month and a Secretary at Rs 80,000 per month, while making Rs 6,660 as the minimum entry level salary.

The existing House Rent Allowance (HRA) rate has been retained for A-1 cities while it is higher by 20 per cent for A, B-1 and B-2 cities. For C and unclassified cities the allowance is higher by 10 per cent.

The report recommends that City Compensatory Allowance (CCA) be subsumed in Transport Allowance, and the rate be increased by four times. In other changes, travel is to be paid on actual.

The Commission also suggested a 40 per cent increase in pension and family pension.

The panel placed the military services' pay on par with those recommended for civilians, while suggesting an allowance of Rs 6,000 per month for officers till the rank of Brigadier and equivalent.

"A scheme of Performance Related Incentive Scheme (PRIS) has been recommended. PRIS should also work as a substitute for bonus, honorarium and overtime allowances," the report said.

The Finance Ministry will consider the report and will submit its recommendations to the Union Cabinet.

While Chidambaram did not announce any provision in the Budget for the increased wage bill in 2008-09, he had maintained that there was enough head-room to meet the additional expenditure. (ANI)

Increase in salary not a disruption for state finances: Montek


New Delhi, Feb 27: Deputy Chairman of Planning Commission Montek Singh AhluwaliaDeputy Chairman of Planning Commission
Montek Singh Ahluwalia has said that an advance on salaries of state government employees would not seem to disrupt state finances.

”I don't think that the impact of this disruption is going to be all that crucial,” he said on the possible impact of adoption of the Sixth Pay Commission award by the state governments.

The report is likely to be submitted by early April.

“The state governments would be under pressure to revise the salary of state employees once the Pay Commission submits the report. Pay Commissions are constituted once in 10 years and blind adoption of the Pay Commission award by the state governments will not be a good idea,” Ahluwalia said.

“Since the Dearness Allowance (DA) does not adequately take care of inflation, the government was made to affect a big increase in salaries of its employees at the end of 10 years. So at the end of 10 years, the government will be benefiting from a squeeze in real pay because the DA was never enough... So you have a big increase," he said.

In anticipation of the Pay Commission recommendations, the Railway Budget has made an ad hoc provision of Rs 5,000 crore for 2008-09 to meet additional liability towards employees and pensioners. (ANI)

Inflation Can Effect Growth, Says Montek


Planning Commission deputy chairman Montek Singh Ahluwalia said that Planning Commission deputy chairman Montek Singh AhluwaliaIndia is not the only country to be affected
by the inflation. All countries are facing economic problems due inflation. He emphasized that world is in middle of a dramatic change in the world price distribution. Hence Indians should get used to the high energy prices.

"Controlling inflation is a short term challenge and would not affect growth rate on a medium to long term basis," Ahluwalia said, adding, "Though this fiscal, we may see a slightly lower growth rate... at about 8%... or a little less than that, say around 7.9%... that is not bad," he said.

However, he added, "If properly handled, inflation should not affect average growth objective of 9%. He said that surging oil prices have pushed up inflation not only in India but also in other countries.


6th Pay Commission to submit its report by April 4


New Delhi, Feb 26 (ANI): Minister of State for Finance P K Bansal on Tuesday said that the Sixth Pay Commission would submit its report by April 4.

The commission was constituted in October 2006 to recommend changes in salary structure of the government employees.

"The Commission is to finalise and submit its report within 18 months of its constitution, that is 4th April, 2008," Bansal told Rajya Sabha in a written reply.

Commenting on the implementation of the commission's recommendations, Bansal said that as the report was yet to be submitted "the time frame for its implementation cannot be stated."

Talking about media reports that there would be a good hike in salaries of civil service staff, the minister said that it might be speculative. (ANI)


Montek Singh Ahluwalia to be awarded with “Lokmanya
Tilak Puraskar


PuneMontek Singh Ahuwalia, Aug 1: Planning Commission Deputy Chairman and noted economist Montek Singh Ahuwalia will be awarded with “Lokmanya Tilak Puraskar” here today for his contribution to the country’s economic growth.

The award includes a gold medal, a citation and Rs one lakh.

Earlier, Chairman of Lokmanya Tilak Trust Deepak Tilak had said, “Ahluwalia would be awarded on the death anniversary of the freedom fighter Balgangadhar Tilak whom the British described as the ‘father of Indian unrest’”.

Maharashtra Chief Minister Vilasrao Deshmukh and Union Power Minister Sushil Kumar Shinde will be present on the occasion.

Ahuwalia who assumed the post in 2004, has also worked as an additional secretary to former premier Rajiv Gandhi between 1985 and 1990.

Besides, he also served in the World Bank for three years. (ANI)

India To Achieve 9% GDP Growth By Next Five Years, Says Montek

Deputy Chairman of Planning Commission, Montek Singh Ahluwalia said Montek Singh Ahluwalia that India has to attain its objective of 9 percent
GDP growth within the next five year regardless of economic slowdown.

While addressing the convocation function of Indian Institute of Management, Ahmedabad (IIM-A), he said, “We are well set to achieve the target of nine per cent growth rate in the next five years.”

"There is a talk in newspapers about slowdown of our economy. There is a slowdown, but India seems poised to have sustained growth for a long period," he said.

Ahluwalia stated that the IIM-A graduates that they are passing out of the top B-schools at a time when India is rising quickly.

He said more advanced technical education institutions have the need to uphold the country's economic development.

Ahluwalia also told that the Centre had also announced the establishment of new IIMs and IITs, which is really a good step forward.

"These institutes should be set up as fast as possible." Ahluwalia said it also required to guarantee growth of subsisting higher educational institutes.

The Centre has made an evaluation committee to inspect the performance of IIMs, and it would be a good chance for these institutions to obtain what they wish for, he said.

On government’s role in present circumstances, he said, It is sometimes said the economic reforms have reduced the role of government. But it is not the case. The role of the government has not been reduced but transformed. It is good the government is not running business which private parties can do."

"Government has now become a growth facilitator. It has to look after social development and infrastructure.


Consumer Price Index Will Also Come Down, Says Montek Singh Ahluwalia



Mumbai: A top Government functionary said that the inflation rate based on the wholesale-price-index dropped, and the consumer price index (CPI) would also go down.

Montek Singh Ahluwalia, Deputy Chairman of Planning Commission said, “The wholesale price index (WPI) operates with a two-week lag and the CPI with a three-month lag....CPI will also come down.”

Mr. Ahluwalia said that bringing inflation down was a key sign of macro-economic success and the RBI has done this extremely well.

For the week ended September 8, inflation rate has dangled to 3.32 per cent from 5.22 per cent in the corresponding period of the last year (2006).

Point-to-point inflation rate, which is based on the CPI-AL and CPI-RL augmented from 8.60 per cent and 8.02 per cent in July to 8.80 and 8.51 per cent correspondingly during August.

Asked about Chidambaram’s acoustic projection of a 10 per cent GDP growth, the well-known economic expert stated, “continuing the (economic) reforms process, we can take the economy to 10 per cent growth at the end of the 11th Five Year Plan period (2007-12).”

Planning Commission chief Ahluwalia to talk on “India” at ASEAN Business Summit 2007


New Delhi, Nov. 16: Dr. Montek Singh AhluwaliaIndia will get special focus this weekend at
the 2007 ASEAN Business and Investment Summit this year. The Confederation of Indian Industry (CII) is hosting the “India Lunch” where Dr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission will pitch for India on Saturday, coinciding with the ‘2007 ASEAN Business & Investment Summit’ in Singapore.

This summit is an annual affair held just prior to the political summit by the host ASEAN country attracts high-level businessmen and senior economic officials from ASEAN and dialogue partner countries China, India, South Korea and Japan.

N Kumar, Past President, CII and Vice Chairman, Sanmar Group who will represent Indian Industry at the Business Summit said “ASEAN provides Indian companies with exciting opportunities and we are working to capitalize on these opportunities and build lasting partnerships here”

He further added that “It is clear that the India-Asean Partnership is a win-win situation. India also brings to the partnership some unique comparative advantages and will broaden the range of complementarities. For instance, all and Southeast Asian countries specialise in manufacturing and hardware capabilities, India's comparative advantage is more in services and software, and in knowledge-based manufacturing. However, to fully enjoy these benefits measures should be put in place to eradicate the impediments standing in the way of full economic cooperation. ”

The CII luncheon meeting is aimed at promoting mutual investment, and spurring enterprises to focus on opportunities and prospects offered within the region. With sustained engagement over the years and as a part of India’s Look East Policy, the ASEAN region has become a preferred destination for Indian enterprises, and many corporates have already set up operations in the region. Their interests extend to almost all sectors in manufacturing and services

India, with its huge consumer market, and infrastructure requirement that is estimated to involve an investment of about 500 billion dollars over the next five years, presents a formidable opportunity for companies of the ASEAN region. With sustained economic growth over the next two decades, it is predicted, India would become one of the three largest economies of the world with large consumer markets and service and manufacturing industries.

The ASEAN Business and Investment Summit provides a great opportunity to build connectivity and relationship with high-level business representatives, government leaders and economic officials of the partner countries. It also presents a platform to showcase promising Small and Medium enterprises of India, which could be global players of the future. (ANI)

ASEAN urged to hold emergency summit on food security


Manila- Leaders of the Association of South-East Asian Nations (ASEAN) must hold an emergency summit to address the looming food shortages in the region, a senior Philippine legislator said Saturday.

Senator Mar Roxas said the 10-member grouping must come up with concerted efforts to address the issue of shortages in staple food and runaway prices of basic commodities.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

"ASEAN has in its membership the world's two biggest rice exporters and the world's biggest rice importer," Roxas said in a statement.

"The proposed summit has the opportunity to ease the fear and the crisis that is gripping both the producing farmers and consumer families across the ASEAN and the region," he added.

Roxas said the summit can include ASEAN's partners like China, South Korea and Japan and multinational financial institutions that have interests on "both the consumer and the producer sides of the current crisis." (dpa)

Inflation Surges To 12.44 Pc


The wholesale index-based inflation rate is further increased to 12.44 per cent. It was Inflation Surges To 12.44 Pc recorded 12.01 per cent in the previous week. The inflation rate was 4.39 per cent in the corresponding period in 2007. The growing rates of food, fruits and fuel prices have contributed in the increased inflation rate.

The prices of fruits increased by 8.9 per cent for the week ended August 2. The prices of maize, moong, urad and other spice went up by 4 per cent and 3 percent respectively. The prices of textile and cement were also increased during this week.

The finance ministry has expressed concerns over the ever increasing price rate. It apprehended further rise in inflation after the implementations of recommendations of 6th pay commission. The government has decided to increase the salaries of center government employees from August 15. The salary hike will further put pressure on exchequer by Rs 21,000 crore. The finance ministry has termed this price rise as shocking because the prices remained stable during last four weeks.

The former Chairman of Prime Minister's Economic Advisory Council C Rangarajan has also expressed concerns over price rise. He said that the price rise can touch 13 per cent in near future. Some other economists also blamed turbulence in some parts of country for price rise.


NHRC asks West Bengal Government to submit report on Nandigram



New Delhi, Nov 12 : The National Human Rights Commission (NHRC) today issued a notice to the West Bengal Government directing it to submit a factual report on the conditions prevailing in Nandigram within 10 days.

The Commission is also sending its own team to the disturbed areas "to study the situation and suggest remedial measures", NHRC officials stated.

The Union Ministry of Home Affairs has also been asked by the Commission to take all necessary steps to restore peace in the area, and has been asked to submit an action taken report within two weeks.

The move by the Commission comes, as situation in Nandigram remains tense with incidents of gunfiring reported almost daily.

The area remains cut-off from the rest of the country with CPI (M) cadres and activists belonging to Trinamool Congress party supported Bhumi Uched Praitirodhi Committee continue fighting for control over the surrounding areas.

The Commission had received messages from different social activists, including Medha Patkar, who was allegedly attacked by CPI (M) cadres in the State when she tried to enter Nandigram.

"Patkar had expressed fear that the gherao of Nandigram might lead to serious and unprecedented bloodshed. She had expressed apprehension whether the State government would be willing to stop the violence or not," a release issued by the Commission stated. (ANI)

Inflation Rate Declines Marginally To 11.89%


The wholesale price index (WPI)-based annual rate of inflation stood at Inflation Rate Declines Marginally To 11.89%11.89 per cent for the week ended July 12, marginally lower than the 11.91 per cent reported in the previous week.

Inflation was 4.76 per cent during the corresponding week a year-ago.

According to official figures, the moderation was due to fall in prices of food items like potato, maize, sea fish, tea and imported edible oils, though other commodities like coffee, fruits and vegetables, mutton and certain pulses like urad, moong and arhar became expensive during the week ended July 12.

On a week-on-week basis, the WPI rose to 239 for the week ended July 12, from 238.7 in the previous week, prompting the finance ministry to say that inflation remains stable.

RBI is expected to raise CRR rate by 25-50 basis points next week from 8.5%, in order to cool knock-on effects of higher fuel prices.

Asia's security forum urges ASEAN, China to keep peace in Spratlys


Singapore - Asia's main security forum on Thursday urged the Association of South-East Asian Nations (ASEAN) and China to expedite the formulation of guidelines governing the conduct in the disputed Spratly Islands in the South China Sea.

The ministers attending the 27-country ASEAN Regional Forum (ARF) encouraged all countries which stake claims on the area to exercise self-restraint.

They noted that while the Declaration on the Conduct of Parties in South China Sea of 2002 (DOC) was effective in building mutual trust and confidence among claimant countries, the ministers urged the "expeditious" formulation of guidelines to implement the document.

"They reiterated the hope that ASEAN and China would expeditiously conclude the guidelines on the implementation of the DOC," said Singapore Foreign Minister George Yeo, outgoing chairman of the ASEAN.

The Spratlys group of islands straddles key shipping lanes in the South China Sea and are believed to be rich in oil, marine and mineral resources. It is considered a potential flashpoint in the region.

Th Spratlys is claimed in whole or in part by the Philippines, China, Brunei, Malaysia, Taiwan and Vietnam. (dpa)

Medha Patkar on a 48-hour hunger strike for peace in Nandigram


Kolkata, Nov 10 : Social activist Medha Patkar today began a 48-hour hunger strike demanding Central government’s intervention to restore peace in the violence-hit Nandigram in West Bengal’s East Midnapore District.

Patkar, joined by the representatives of Forum of Artistes, and other social forums, including groups of cultural activists and intellectuals, is demanding withdrawal all cadres, apparently belonging to the Communist Party of India-Marxist (CPI-M), from Nandigram.

Patkar, whose convoy was allegedly attacked by CPI-M supporters when she was on her way to Nandigram on Thursday, met Governor Gopalkrishna Gandhi on Friday and submitted a memorandum demanding "urgent intervention by the Governor as well as the Government of India to open up Nandigram by ensuring withdrawal of siege and stopping outsiders from entering."

Patkar also alleged that the police there behaved in a partisan manner.

She has also called a mass rally on November 14 without any political banner.

Meanwhile, the CPI (M) state committee is holding a meeting on Governor Gopalkrishna Gandhi’s statement on Nandigram violence issued on Friday.

Gandhi termed as “unlawful and unacceptable” the manner of recapture of villages in Nandigram that has become a “war zone”.

“The manner in which the recapture of Nandigram villages is being attempted is totally unlawful and unacceptable,” the Governor said in a statement to the media without naming the CPI-M-led State government.

There are reports of forcibly recapture of most areas in Nandigram.

A new turf war between the CPI-M cadres and Trinamool Congress workers has already claimed four lives, besides leaving thousands homeless and dozens injured.

Earlier, Prime Minister Manmohan Singh expressed concern over Nandigram violence and asked Union Home Minister Shivraj Patil to look into it urgently.

Nandigram has been the scene of recurring clashes since January resulting in deaths, including 14 in police firing and violence on March 14 when villagers resisted the police from entering.

Sporadic clashes between rival groups have continued despite the State government's decision against the setting up of a chemical hub in the area in the face of protests from a section of the people there. (ANI)

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Ex-servicemen protest against pay hike



IPS officers unhappy over pay report




Will salary hike improve efficiency?




In ex-soldiers protestdian



Pay Commission recommends hefty increase in salaries of government employeess

New
Delhi, Mar 24 : The Sixth Pay Commission headed by Justice B. N.
Srikrishna has recommended a hefty increase in salaries with effect
from January 1, 2006 for as many as 4.5 million central government
employees.

The Commission’s recommendations, submitted to Union Finance Minister
P. Chidambaram this morning, would cost the exchequer Rs 12,561 crore
in 2008-09 and impose an arrear payout burden of Rs 18,060 crore on the
Government.

The pay panel proposals revised pays that fixed the salary of the
Cabinet Secretary at Rs 90,000 a month and a Secretary at Rs 80,000 per
month, while making Rs 6,660 as the minimum entry level salary.

The existing House Rent Allowance (HRA) rate has been retained for A-1
cities while it is higher by 20 per cent for A, B-1 and B-2 cities. For
C and unclassified cities the allowance is higher by 10 per cent.

The report recommends that City Compensatory Allowance (CCA) be
subsumed in Transport Allowance, and the rate be increased by four
times. In other changes, travel is to be paid on actual.

The Commission also suggested a 40 per cent increase in pension and family pension.

The panel placed the military services' pay on par with those
recommended for civilians, while suggesting an allowance of Rs 6,000
per month for officers till the rank of Brigadier and equivalent.

"A scheme of Performance Related Incentive Scheme (PRIS) has been
recommended. PRIS should also work as a substitute for bonus,
honorarium and overtime allowances," the report said.

The Finance Ministry will consider the report and will submit its recommendations to the Union Cabinet.

While Chidambaram did not announce any provision in the Budget for the
increased wage bill in 2008-09, he had maintaine
Union Cabinet may approve Sixth Pay Commission report today


New Delhi, Aug 14 : The Union Cabinet is likely to put its seal on the Sixth Pay Commission Report, which was tabled in the Parliament earlier this year, but not implemented till now.

A high level meeting chaired by Prime Minister Dr. Manmohan Singh last evening discussed the pay panel report and the recommendations of the empowered committee of Secretaries that went into the anomalies and other issues.

External Affairs Minister Pranab Mukherjee, Defence Minister AK Antony and Union Finance Minister P Chidambaram attended the meeting.

The Prime Ministers is likely to make an announcement regarding the implementation of the Pay Commission Report during his Independence Day speech on Friday.

It is expected that the Pay Commission would result in an increase of around 1.83 times of the net pay for the defence personnel, though details regarding the amendment to the report are not clear. It is likely that civil servants may also get a substantial raise.

The new pay scales, if implemented, will cost the exchequer Rs 7975 crore in fiscal 2008-09. However, the one-time additional outgo on account of the retrospective revision of salaries is estimated to be Rs 18,060 crore. The arrears are to be given in installments.

The Sixth Pay Commission Report, submitted by Justice B N Srikrishna on March 24, had recommended an effective 28 per cent salary hike for an estimated 4.5 million Central Government employees.

Expressing resentment over the report, armed forces personnel had demanded a better deal considering the hardship factor involved in their services, followed by protest rallies by retired personnel. The three service chiefs also lobbied with the Defence Minister.

The Government then set up a high-powered committee headed by Cabinet Secretary K M Chandrasekhar to look into the anomalies pointed out by different sections of the government servants, including those from the defence services. (ANI)

Finance Minister P. Chidambaram receives Sixth Pay Commission report

The Sixth Pay Commission headed by Justice B. N. Srikrishna today submitted its report to Union Finance Minister P. Chidambaram presumably recommending a 40 per cent hike in salary for the central government employees.

"I have recommended something for the good of the country. The Finance Minister will give the latest highlights," said Justice Srikrishna.

Over 4.5 million central government employees are expecting a bounty from the report which is likely to recommend major changes in salaries and terms of employment, including performance-linked pay and incentives.

"A senior secretary gets Rs 52,000 as monthly salary. I do not expect it to go up to more than Rs 60,000. Salaries of top officials will not be more than that of governors," a secretary-level official of the Central Government said.

The hike, which is with retrospective effect from January 2006, was necessitated by the fact that members of Parliament were drawing Rs 68,000, more than the Vice-President, who is the Chairman of the Rajya Sabha.

In his budget speech last month, Chidambaram had said the pay panel’s recommendations would meet the legitimate expectations of government employees. The railway budget for 2008-09 has kept aside Rs 50,000 million for implementing the Sixth Pay Commission's recommendations for its 1.4 million employees.

According to budget estimates of GDP for 2008-09, the financial impact of the proposal has been estimated to be within 0.4 per cent of the Gross Domestic Product (GDP), which amounts to about Rs 2,10,000 million.

The Commission was constituted in October 2006 to recommend changes in salary structure of the government employees. (ANI)

Pay Panel Report To Face Cabinet Test Today


Prime Minister Dr. Manmohan Singh held a meeting with defence minister A.K. Antony and finance minister P. Chidambaram on Wednesday, regarding the pay commission recommendations for Central government employees, armed forces employees as well as paramilitary staff.

A senior Union minister stated that Cabinet is ready to sanction the Sixth Pay Commission recommendations today.

Prime Minister Dr. Manmohan Singh will declare the award during his Independence Day speech on Friday, August 15.

Around 5.4 million government workers will get their pay increases and the administration will have to distribute an additional Rs 20,000 crore.

The armed forces were sad with the new pay structures but now sources said that a compromise has been made between the administration and the services.

The government has accepted the demands of the defence forces.

But it's a bit less than the 15% extra they demanded earlier.

So, if in April the promised hike for a colonel was Rs 15,000, now it's going to be about Rs 19,000.

Bonanza For 50 Lakh Govt Employees


On the eve of country’s 61st Independence Day, the UPA government under the Bonanza For 50 Lakh Govt Employeesleadership of Prime Minister Manmohan Singh sanctioned a wage hike higher than the recommendations of Sixth Pay Commission for the country’s civil and defence staff.

After the meeting of the Union Cabinet chaired by the Prime Minister made the announcement that there would be an average increase of 21 per cent in salaries of over 50 lakh government employees with effect from January 1, 2006.

Briefing media persons information and broadcasting minister P.R. Dasmunsi said that the wage hike would increase the financial implication for the Centre by Rs 17,798 crore annually and the arrears with effect from January 2006 would cost Rs 29,373 crore.

The minimum entry level salary of a government has also been increased to Rs 7,000 as against proposed by the commission headed by Justice B.N. Srikrishna, who submitted the report in March this year. This means that the employee at the lowest level would have a salary that would be beyond Rs 10,000, including allowances. The rate of annual increment has also been hiked from 2.5 per cent to the 3 per cent by the government.

The government under the modified Assured Career Progression scheme has also approved at least three assured promotions for all defence forces personnel and civilian employees. While civilians would get this after 10, 20 and 30 years of service, defence forces jawans would be promoted under the ACP after 8, 16 and 24 years.

The salaries of the Brigadiers has also been increased as the government have 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). A separate pay scale for the DGPs, PCCFs, GM (Railways), members of the boards of income tax, customs and central excise, postal and ordnance factories among others have also been carved out.

As against the pay scale of Rs 24,050-26,000 the revised pay scale would take them to the level of Rs 80,000 in two years as against three years.

PM Approves Changes To Pay Panel
Recommendations


Armed forces, civil servants and paramilitary staff will get to rejoice this PM Approves Changes To Pay Panel RecommendationsIndependence Day with the administration ready to approve the Sixth Pay Commission Report that was postponed in the Parliament earlier this year, but not implemented up till now.

A high level conference on Wednesday (August 13) led by Prime Minister Dr. Manmohan Singh discussed the pay panel details and the suggestions of the empowered group of Secretaries that went into the anomalies and other matters.

The meeting was also attended by the External Affairs Minister Pranab Mukherjee, Defence Minister AK Antony and Union Finance Minister P Chidambaram.

According to official sources, “The Cabinet is likely to take up the sixth pay panel report for approval tomorrow and the matter was discussed at a meeting chaired by the PM today.”

Though the sources denied to share other details of the conference or the modification to the pay commission report, the addition over the commission’s proposals would result in an increase of 1.83 times of the net pay for the armed forces staff and a considerable increase for civil servants also.

The pay commission, submitted by Justice B N Srikrishna on March 24, had originally advocated that the pay for the defence forces be hiked up by 1.74 times, computed on the basis of the inflationary factors.

Showing anger over the pay commission report, armed forces staff called for a better deal considering the adversity factor involved in their services, followed by protest rallies by retired personnel.

The tri-services chiefs also lobbied with the Defence Minister.

The Government then set up a dynamic group led by Cabinet Secretary K M Chandrasekhar to investigate the anomalies signalized by various sections of the government servants, including those from the defence services

Centre hikes DA rate by 6 percent
New Delhi, Mar 7 :dearness allowance The Union Cabinet today gave its approval to hike the rate of dearness allowance (DA) by six per cent.

The cabinet gave not to release of additional instalment of to the Central Government employees and dearness relief to pensioners due from January 1 this year at the rate of 6 per cent over the existing rate of 41 per cent, thus, the rate of DA from January 1 this year will be 47 per cent.

The Central Government employees and pensioners will become entitled to higher amount of dearness allowance and relief respectively January 1 this year.

The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs. 3297.12 crore in a full year and Rs. 3846.66 crore in the financial year 2008-2009 ( for a period of 14 months from January 2008 to February, 2009). (AN

PM To Chair Meeting On Armed Forces’ Pay Package

The government may announce the new pay package on 15 August for armed forces.

Armed forces had expressed dissatisfaction over the Sixth Pay Commission report and sought the revise of pay structure recommended by commission. The country has a total of 12 lakh personnel of the armed forces.

A meeting to discuss about salaries and perks of armed forces is scheduled on Wednesday. Prime Minister Manmohan Singh will chair the high-level meeting to take final decision on the salary issue. The meeting will also be attended by Defence Minister A.K. Antony, Finance Minister P. Chidambaram and Cabinet Secretary K. Chandrashekhar.

The pay commission had submitted the report on May 24 and recommended 40 percent hike in the salaries. The hike becomes 20 per cent after imposing some taxes on hiked salaries. The armed forces had sought the intervention of defence ministry and submitted a joint memorandum to defence minister Antony. Defence minister had assured them some improvements in the original recommendations of commission.

The service chiefs and personnel below officer rank (PBOR) had also expressed their dissatisfaction on the pay structure issue. The army is should, now, be ready to get revised pay structure in terms of independence gift.

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