Since the first round of calculations after notification of Govt. decisions is over, there is a sinking feeling amongst many of the employees. The Pay Commission benefits which appeared to be too good to be true to some at one stage, now seem to be gradually slipping away after realization of the Income Tax liabilities. Since the tax on the entire amount of arrears is to be paid in this financial year and there is no precise commitment about the date by which the balance of arrears would be paid, the picture is a bit despondent. Here are some sample calculations to find out as to how much would be left out to employees. (These are just random sample calculations which were attempted for sake of having a clear picture . Please do not make requests for advice on individual cases). Since all circulars are available on the net (and some calculators have also been hosted on individual blogs) making individual calculations is not difficult. There is possibility of calculation errors also.If any mistakes are noted,suggestions would be welcome. Income Tax calculations would differ for each case .What is shown here is only approximation.
The decisions of the Govt. Of India on recommendations of the Sixth Central Pay Commission (CPC) were notified on 29th August 2008 by the Department of Expenditure , Ministry Of Finance.
The recommendations which are modified include changes in Pay Bands PB-1 (now pushed higher at Rs.5200-20200), PB-2 (now increased to Rs. 9300-34800) and PB-4 (now starting lower at Rs.37400-67000)
Grade pay has been increased in several cases over the recommendations oF VIth CPC, the increase ranges from Rs.500/- to Rs.1000/-,
A new grade is carved out of PB-4 which is to be designated as HAG (Rs.75500-80000/-).
Govt. have approved a multiplication factor of 1.86 (to be rounded off to next multiple of 10) for calculation of corresponding stage in the new scales and rate of annual increment is increased to 3% (4% for achievers) of the sum total of basic pay and Grade Pay.
The Group B Services OF Delhi & Andaman Nicobar Islands Civil & Police Services as well as the cadre of Section Officers in the Central Secretariat Service and Department of Posts shall be placed in PB-2 at induction stage and shall move to PB-3 after 4 years of regular service in Grade Pay of Rs. 5400/- on non functional basis. Somewhat similar benefits have been approved for IAAD officers in whose case all posts of Section Officers , Asstt Accounts/Audit Officers are to be merged into one .
The Gr, B Officers in Railways and the Audit/Accounts Officers in IAAD are to get grade pay of Rs.5400/-in PB-3 instead of PB-2 as recommended by the Commission.
Scientists in Space, Atomic Energy and Defence Research & Development Organisations have been given various benefits ranging from Rs.1000/- to 2000/- for recognition of good performance.
The Govt’s approval for revised pay-scales is to be implemented w.e.f 1st Jan. 2006. However the arrears for various allowances such as Transport Allowance,HRA shall be payable at the revised rates from 1st Sept.08 only . As announced earlier 40% of the arrears are payable in Fy 2008-09 and rest 60% in subsequent year.
For the Purpose of Calculation Of Dearness Allowance the All India Consumer Price Index 2001 is to be adopted This index presently stands somewhere around 140 and was around 116 in 2006. (The approximate rate of DA payable was found on a Govt Officials’ blog.)
Other major decisions concerning administrative reforms relate to approval Of Assured Career Progression Scheme (ACP) with provision for promotion after 10,20 and 30 years and setting up of Anomalies Committees to take care of grievance regarding unfair treatment Cadre review and empanelment of Gr.A Services is to be updated in one year.
The CPMF Officers of the rank of Commandant and below are to be considered for payment of allowances comparable to Army while deployed in terrorism infested/difficult areas. However the officers would be losing some personal privilege since the posts of personal attendants known as Suraksh Sahayak are to be abolished . The posts of Addl.DIG upgraded to DIG level in CPMF shall continue to be manned by their Officers.
The Ministry of Finance has subsequently brought out Revised CCS Pay Rules 2008 for Central Govt. Employees which were followed with instructions Dt. 30th August 2008 which provide the tables for calculation of matching pay and Grade Pay and the methodology for calculation and payment of arrears. This we shall take up in subsequent posts.
Later…..Please see the latest post on this site for exact rates for DA and other allowances
SINGH seems to have again proved that he is the KING. After winning the confidence vote in the Parliament and having firmed up his grip on the Government PM Manmohan Singh managed to steer the Sixth Pay Commission Report through the Cabinet seemingly with benefits for everyone. While detailed report on the final decisions is yet to trickle down, the first reports indicate that the matter was tackled in a humanitarian spirit and some harsh suggestions from FM Chidabaram were overruled (including the suggestion for locking up 60% of the arrears in the GPF till retirement).
At this hour when Central Para Military Forces are engaged in tough operations at more than one place in the country and the hardships involved are reportedly taking a heavy toll on the morale of the security forces , the decision to give benefits to Jawans over and above the recommendations of the Central Pay Commission (CPC) and a handsome Military Service Pay to officers was the most sensible decision to be taken by the Govt while considering the report.
Increase in annual increment rate to 3% (against 2.5% recommended by the CPC ) and a higher fitment benefit is another decision which will take the sting out of one major criticism of the report and shall be giving a reason for cheer to everyone.
The reshuffling of various categories of employees to Pay Bands higher than the ones recommended by the CPC would also take care of the wide ranging dissatisfaction in middle level officers who had complained about the benefits for top level functionaries being much higher than those of others. Special mention needs to be made about opening of the PB-4 for middle level officers- a move which shall ensure that PB-4 shall not be an exclusive domain for top civil servants .
One decision which may appear retrograde to progressive minded mangement experts however stands out. That decision is to discard the recommendation of the CPC for ending further recruitments for the Gr.D category staff and upgrading the peons and khallasis to semi skilled Gr. C staff. The Govt. could not agree on that and so the humble relics of medieval ages shall hang around for a decade or so, till some Govt. understands the need for dispensing with this organ of governance.
For the Forest and Police Services there are a few benefits in addition to what the CPC had sought to give , such as the creation of Posts of Principal Chief Conservator of Forests and Director General Of Police for every State. But these have apparently not gone down too well and some officers gave vent to their frustration in media over the unfair deal which successive pay commissions have meted out to them.
The Indian Media as usual wants to paint the Pay Commission benefits as monstrous assault on national economy.On the other hand there was a tough looking guy on the TV who used this opportunity for being projected in national media, for IAS bashing saying that all officers are unworthy of the service !
The recommendations concerning Central Paramilitary Forces (CPMFs) are covered under Ministry of Home Affairs in Chapter 7.19 of the Sixth CPC report .The CPMFs comprise of the following 7 outfits.
Assam Rifles which originated as Cachar Levy in 1835 is presently having more than 63000 personnel (46 Battalion) .The force working under operational Control of Army guards Indo Myanamar border .
The Border Security Force (157 battalions) has been deployed on international borders since 1965 and also in anti insurgency operations.
The Central Industrial Security Force (CISF) created in 1969 has more than 1 Lakh personnel deployed for guarding Airports (54), PSU Establishments (269) and several Govt. Buildings (49) including North Block , Part of South Block and CGO complex. It also provides technical consultancy for security and related matters.
Central Reserve Police Force (CRPF) (201 Battalions) having replaced Crown Representative Police of pre independence era is the oldest CPMF. The personnel from this force are engaged in major anti insurgency/ terrorism / militancy related operations in the country.
Indo Tibetan Border Police (ITBP) assists in Disaster Management related work in Central & Western Himalayan Regions and also in providing security cover for Kailash Mansarovar Yatra.
National Security Guard (NSG) tackles high risk security operations.The personnel are drawn from Army (as Special Action Group) and CPMFs (as Special Rangers Group). The NSG commandos provide security cover for VIPs and take charge of security on special occasions.
Sashastra Sena Bal which started as Special Services Bureau (SSB) in 1963 is deployed along Indo Nepal & Bhutan border covering stretch of more than 1900 kms in 20 Districts.
The major demand from CPMFs for being given status of organized Group A Services has not been agreed to on the ground that these services do not fulfill the pre requisites for such declaration as fixed by MHA. In support of it’s recommendations the Commission has pointed out that substantial number of posts in these forces including those in pay scale of 18400-22400 are filled up by drawing officers on deputation from IPS and also pointed out that many intermediate grades do not exist in the hierarchy of these organizations. The Sixth CPC has also reiterated it’s philosophy of avoiding creation of too many services.
Commission has also not agreed to creation of certain additional posts demanded by CPMFs for creating promotional avenues on the ground that there should also be functional justification for posts . It has felt that the provision of ACPs and the system of Running Pay Bands would minimize the grievances of such nature.
On the positive side the Commission has recommended the merger of the post of Addl DIG with that of DIG (16400-200000) . It has recommend that all posts upto the rank of DIG and 50% posts in the grade of IG and equivalent should be filled by promotion from officers of CPMF.
The following pay structure has been recommended for non gazetted executive cadres of CPMFs.
Commission has also noted that except for CISF all CPMFs are not filling up posts of ASI in the executive cadre .This step being contrary to order Dt.10/10/97 is affecting the structural parity within the forces . It has suggested that all CPMFs should continue the post of ASI since this is a functional necessity.
Other recommendations made by the Commission include payment of ration money at par with Armed Forces to existing beneficiaries and doubling of the rates for Detachment Allowance (without linkage to DA) . Rates of Kit Maintenance Allowance are proposed to be doubled with increase of 25% after every hike up to 50% in DA. The rates of Uniform Grant are recommended as Rs.13000/-(initial) and Rs.6000/- (renewal-every 3 yrs).
For taking care of housing needs, facility of Compensation in lieu of Quarters (CILQ) has been recommended for all personnel in SO grade also. Commission has also recommended a new Family Accommodation Allowance at the lowest rate of HRA payable to all CPMF personnel who do not qualify for benefit HRA or CILQ or rent free accommodation for reason of their stay in barracks. This will also be a DA linked Allowance.
Commission has rejected the demand of one month’s extra pay for CPMFs having benefit of 60 days earned leave in a year on the ground that the personnel are already compensated by this 30 days extra leave.
Another major change suggested is for stopping further recruitments to the cadre of followers and absorbing the existing cadres to -1S pay band with the objective of converting them to Gr.C combatant staff after suitable training. It has been suggested that all non essential jobs handled by followers should be outsourced.
Recommendations also suggest that the practice of attaching Constables (Suraksha Sahayaks) / combatants at the residence of Officers for attending to Telephone calls or other such personal responsibilities should be stopped. If any cases of violations of these instructions are found, the salary of constables deployed should be recovered from the Officer concerned. The report states that if any posts are required for such personal tasks the appropriate sanction should be taken and the jobs should be outsourced.
Regarding Allowances other than Deraness Allowance, the Commission has offerd a mixed bag of benefits and also recommended some cuts in existing package .
(i) For City Compensatory Allowance which was being paid @ Rs.90-300/- for A-1 Category cities and at lower rates for A (Rs. 65-240/-), B-1 (Rs.45-180/-) & B-2 (Rs.25 -120/-) category cities to compensate for higher cost of living in these cities, the Commission has noted that the benefit provided is too low (1% to 5% of BP) and the criteria followed is not scientific enough to justify it’s continuation. It has noted that Housing and Transport are two major expenditure heads in larger cities but these are being compensated enough under HRA & Transport Allowance. Abolition of CCA has been recommended.
(iii) For travel on tour and transfer the following scale of admissibility have been recommended:
For travel outside the country the travel entitlements would remain the same. However the Commission has recommended that the benefits of mileage points earned by the government servants on official tours would be transferred to the respective departments (for utilisation for official tour of other employees). Utilization of these mileage points by the respective government servant for private journeys would invite disciplinary action.
For travel by road by means of public transport reimbursement to the extent of entitled class train fare is recommended.
(iv) The Commission has noted that the present rates for reimbursement of daily allowances for officials on tours are grossly inadequate. The recommendations are as follows
(v)The findings are similar for composite transfer grant payable to employees on transfer involving change of residence in public interest. It has been noted that some of the rates presently adopted are illogical and cause financial hardship to employees. The following rates have been recommended in order to rationalize the structure.
For employees serving in Andaman & Nicobar Islands any further concessions are not found admissible.
The Commission has made the rates for both the above cases dynamic i.e. the rates would increase by 25% whenever the the DA payable on revised pay increases by 50%.It has also suggested that in future the budget for travels should be kept to minimum and unnecessary travels should be avoided.
(vi) In respect of Transport Allowance the following revised rates are recommended to compensate for the increase in fuel cost.
The employees staying in official accommodation within proximity of workplace would also be entitled for this allowance. For the physically challenged employees the rates remain double of the rates subject to minimum of Rs.1000/- pm. The Officers in PB=4 have the choice to avail Transport Allowance @ Rs.7000/- pm on condition of giving up the facility of using official transport for traveling between home and workplace .
(vi) The Non Practicing Allowance (NPA) presently paid to Doctors in Govt. Service to compensate for loss of private practice has been recommended to be continued for historical reasons and also for the reason that the entry into govt. service is at a relatively late stage for medical professionals and also due to the reason that the working conditions are comparatively difficult. NPA shall be paid @ 25% of sum total of band pay +grade pay subject to ceiling 85000/- on this amount (BP+GP). NPA has not been found admissible for any other category of government employees.
(vii) For considering the demands for increase in House Rent Allowance (HRA) the Commission has taken note of increase in rental values in smaller unclassified towns and attempted to mitigate sufferings of employees on this account by clubbing unclassified towns with Gr. C towns. The rates of HRA recommended are as below.
(viii) Commission has recommended for merger of Children education allowance with Tuition fees reimbursement. Henceforth reimbursement is permissible up-to Rs.1000/- for education and upto Rs.3000/- pm for hostel charges per child subject to ceiling of two children.
(ix) For employees in hazardous posts involving health risks ,the risk allowance has been discontinued and the employees are now proposed to be covered by free medical insurance ranging from Rs. 5 Lakhs to 10 Lakhs depending on respective category at govt cost .The insurance cover is proposed to be dynamic subject to 50% increase whenever DA increses by 50%.
(x) For Uniformed forces the revised rates of initial grant for uniform allowance shall be Rs.14000/- (Rs.16000/- for coast guards) against earlier rate of Rs.6500/-.Renewal is recommended every three years (instead of earlier 5 years) @ Rs.3000/- (Rs.5000/- for coast guards) .The rates of kit maintenance allowane for all other categories are also proposed to be doubled.
(xi) For all other allowance such as cycle, washing, cash handling, machine, Night duty, Split duty Allowances the rates are recommended to be doubled and shall be dynamic being linked to increase in DA as for other allowances mentioned at sl.no.(v) above.
(xii) The rates of Deputation (Duty) Allowance and Central (Deputation On Tenure) Allowance shall continue to be paid @ 5,10 & 15 % of the aggregate of pay and grade pay without any limits . However aggregate of grade pay and Deputation allowance should not exceed Rs.39,2000/- which is the starting pay for PB-4. The Central (Deputation On Tenure) will continue to be be payable only up-to Director level posts.
Next Post: Retirement benefits
Chapter 2.3 of the Report briefly recaptures the historical developments in reference to determination of pay structure for the Armed Forces, starting from constitution of the Post War Pay Committee in 1947 which for the first time attempted to establish relative parameters in reference to Indian Police Service (IPS) and the Central Class I Services but also brought down the pay scales of many Indian Commissioned Officers. The Government subsequently modified pay structure for Armed Forces in 1960 when the Raghuramaiya Committe endorssed the concept of parity with the above referred services as conceived earlier.
The pay structure for Army was for the first time referred to Central Pay Commission (CPC) at the time of Third CPC which recommended merger of the Special Disturbance Allowance (being paid to army personnel since 1950 as a temporary compensatory measure) with the pay, there by making the pay structure for Army slightly better than civilian pay scales. The Fourth CPC accepted the demand for running pay bands and rank pay up to the scale of Brigadier, but the structure was subsequently realtered by Fifth CPC which gave scales on pattern of civilian establishment to the Armed Forces with a slight edge due to difficult working conditions. The recommendations of Fifth CPC which form the basis for existing pay structure are reflected below.
The Sixth CPC has recmmended restoration of Running Pay Bands on the ground that similar structure is now recommended for Civil Services and the possibility of disparity on that account is ruled out .Another important benefit is that this measure would facilitate smoother absorption of ths Short Service Commission Officers (SSCOs) and Personnel below Officer’ Ranks (PBORs) in Central Paramilitary Forces (CPMFs) by identification of analogous posts in the two structures (e.g.Major and Deputy Commandant in Army and CRPF). It has however added a new component to the salary of armymen under the title of Military Service Pay(MSP) which would be admissible to all ranks upto Brigadier.
The Commission foresees that the MSP shall ensure that the edge enjoyed by the army pay structure vis a vis the pay scales for civillian employees continues . MSP shall be counted as pay for all practical purposes. Although MSP shall not be admissible beyond the rank of Brigadier yet the edge provided by MSP shall continue at subsequent stages since it would be embedded in the pay at subsequent fitment stage. However for purposes of determination of comparative seniority the indicator shall be the grade pay. MSP being a new addition to pay, arrears would not be payable for the past. The Pay Structure as recommended by Sixth CPC is as follows.
Some other major recommendations relate to upgradtion of Scale of pay admissible to Director General of Armed Forces Medical Service to Rs.80000/-(fixed) and the decision to allow the non functional scale of Army Commander to Lt. Generals who do not get the post due to age bar. Similar benefit has been recommended for ofiicers of other ranks who are similarily deprived of promotion due to shortage of tenure. Commsision has however not agreed to increase the scales for Principal Staff Officers posted at Army HQs on the ground that this would affect the relativity with Corps Commanders operating in the field.
Commission has also recommended continuation of existing higher entry grade pay to Lieutant in Army Medical Corps (AMC) as compared to Lieutant in the Army. Higher pay to the extent of 7.5% for Lieutant and 10% for the Captain has been recommened. Regarding Military Nursing Services (MNS) the recommendation is for maintainig parity with the Service cadre Officers. Extension of time bound promotion scheme upto level of Lt. Col. has been recommended for the Officers of MNS and MSP to the extent of Rs.4200/- has also been recommended alongwith benefit of one pay fixation increment at the stage of promotion .The Pay Scales recommended for MNS are given below.