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6 Centr Al Pay Commi Ssion: BY: Amit Rana Chandani Rajpal Singh Isha Makhija Shruti Saroha Ashmin Arora

The document discusses the key aspects of the 6th Central Pay Commission for Indian Railways. It outlines that the basic pay will be multiplied by 1.86 factor and rounded to the next multiple of 10 to determine pay in the revised pay band. Grade pay will be added to calculate revised basic pay. Annual increments will be 3% and transport allowance has been increased for lower level employees. Allowances like city compensatory, cycle, and washing have been doubled.

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103 views27 pages

6 Centr Al Pay Commi Ssion: BY: Amit Rana Chandani Rajpal Singh Isha Makhija Shruti Saroha Ashmin Arora

The document discusses the key aspects of the 6th Central Pay Commission for Indian Railways. It outlines that the basic pay will be multiplied by 1.86 factor and rounded to the next multiple of 10 to determine pay in the revised pay band. Grade pay will be added to calculate revised basic pay. Annual increments will be 3% and transport allowance has been increased for lower level employees. Allowances like city compensatory, cycle, and washing have been doubled.

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© Attribution Non-Commercial (BY-NC)
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A L PAY

th CENT R
6 I O N
M M I S S
CO
BY:
AMIT RANA
CHANDANI RAJPAL SINGH
ISHA MAKHIJA
SHRUTI SAROHA
ASHMIN ARORA
PAY COMMISSION
The Pay Commission is an administrative system /
mechanism that the government of India set up in 1956
to determine the salaries of government employees. 

Pay Commission comprises of a panel of members of the


Union Cabinet of India who decide on and are responsible
for increasing the salaries of government employees.

The sixth pay commission was set up in July 2006 under


the chairmanship of Justice B.N.Srikrishna. The
recommendation of the commission cost the government
about Rs. 20,000 crore.
SIXTH PAY
COMMISSION
Members of the Sixth Pay Commission

Chairman : Mr. Justice B.N.Srikrishna 
Members : Prof.Ravindra Dholakia,
Mr. J.S.Mathur 
Member-Secretary : Smt. Sushama Nath
SIXTH PAY COMMISSION
The pay commission suggested that arrears be paid to
all government employees from January 2006 to
September 2008. 40% of these arrears were paid by
the government in 2008 and the remaining 60% were
paid in 2009. The primary goal of the Sixth Pay
Commission was to iron out complications in respect to
various pay scales. In fact it recommended the
removal of pay scales and introduction of pay bands.
 The government employees had threatened to go on a
strike if their salaries were not raised. The govt
employee want a hike in their salaries mainly because
the Indian economy is facing a serious problem called
inflation.
SIXTH CENTRAL PAY COMMISSION
TO REVISE SALARIES
The central government approved the setting up of
the sixth pay commission to upwardly revise
salaries and perks for its 550,000 employees
across the country.

A cabinet meeting headed by Prime Minister


Manmohan Singh decided that the term of the
commission would be for 18 months.
HIGHLIGHTS
 Total number of grades reduced to 20 against the prevailing 35.

 Substantial increase in allowances like education and HRA; a new

medical insurance scheme recommended.


 Performance linked incentive scheme to be introduced.

 5 day work week to continue; offices to be closed only on 3 national

holidays; all other gazetted holidays to be abolished and adjusted in


restricted holidays.
 Cabinet secretary and secretaries to be kept in distinct pay scales at

Rs 90,000 and Rs 80,000 a month, respectively.


 Defence forces to be treated at par with civilians for running pay

bands and grades; in addition Rs 6,000 per month for officers up till
HIGHLIGHTS OF 6TH CPC
DATE OF EFFECT FROM 01 JAN 2006

ARREARS EXCEPT DA, FROM 01 SEP 2008. PAYMENT

OF ARREARS- 40% IN 2008-09 AND 60% IN 2009-10.


TWO GPS RETAINED i.e. ‘X’ & ‘Y’ GPS.

RUNNING PAY BANDS RE INTRODUCED FOR DEF

FORCES
RATE OF INCREMENT 3% OF PAY BAND & GRADE PAY.

NEXT YRLY INCREMENTS FROM 01 JUL.


DEARNESS ALLCE
FROM INCREASE IN BASIC PAY
01 JAN 2006 Nil
01 JUL 2006 2%
01 JAN 2007 6%
01 JUL 2007 9%
01 JAN 2008 12%
01 JUL 2008 16%
Positive Effects
The positive effect it would have are : More money in the
hands of the people would result in more spending in malls
and retail outlets, thereby giving a push to slagging demand
in consumer durables and two wheelers.
Quality of employees in the public sector and administration
would hopefully improve, because of higher pay packets.
 Public sector units would be able to give better incentivs
their employees and could hope to retain outperformers
The armed forces, which are facing a shortage of middle
level personnel would be better placed to hire capable junior
officers and other staff.
Negative Effects
The negative effects it would have on the economy are : An
already stretched Fiscal Deficit could worsen further, giving
rise to downgrades by international rating agencies.
However the Government could try to manage the situation
by means like increased revenue from spectrum sale to
telecom companies and by disinvestment of shares in PSU's
to the public.
 Inflation fires could be further stoked by more disposable
income in the hands of the people. This should be more
worrisome to a Government already battling high inflation
and could lead to further tightening of liquidity by RBI.
6th PAY COMMISSION
FOR DEFENCE
PERSONNEL
FEATURES OF VICPC
 Integrated pay structure replacing the erstwhile horizontal pay
structure; removing stagnation.
 Annual increment @ 3% of basic pay on 1st Jul each year.
 All ranks, except those in Apex scale, entitled to promotion
increment @ 3% of Basic Pay on each promotion.
 Existing three pay groups of PBOR reduced to two. ‘Z’ merged with
‘Y’ group.
 Common pay scales for PBOR introduced wef 01 Jan 2006 enabling
Army PBOR to draw pay at par with Naval and Air Force PBOR.
 Most allces doubled.
Eligibility condition for grant of Tpt Allce, CEA, Travel
entitlement etc is liberalized.
 PBOR given the option to claim HRA.
 Leave encashment delinked from No of years of services and
encashment of leave while in service libralised.
 Ceiling on DCRG raised to 10 Lakhs.
 Pension to be calculated at 50% of emoluments last drawn.
Minimum pension Rs 3500/-
 CCA abolished.
 Addl Pension/Family Pension above 80 years of age.
 Commutation of pension at 50% instead of 43%/45% for
Offrs/PBOR respectively.
X AND Y GPS RETAINED
ONLY TWO TRADE GPs i.e. X & Y.

Y & Z GPs BEING MERGED

PAY BANDS AND GRADE PAY FOR SAME RANKS


IN BOTH GPs.

SEPARATE ‘X’ GP PAY OF Rs.1400


PAY SCALES
Ranks Pre- revised pay Revised pay
Scale inclu Rank pay Pay band Grade pay MSP

Lt 8250-300-10050 15600-39100 5400 6000

Capt 10000-300-11800 15600-39100 6100 6000

Maj 12800-325-16050 15600-39100 6600 6000

Lt Col 15100-400-18700 15600-39100 7600 6000

37400-67000 8000 6000

Col 17100-450-19350 37400-67000 8000 6000

Brig 19100-450-20450 37400-67000 8900 6000

Maj Gen 18400-500-22400 37400-67000 10000 0

Lt Gen 22400-525-24500 67000-79000 - 0


75500-80000

VCOAS/ Army Cdr 26000 (fixed) 80000 (fixed) - 0

COAS 30000 (fixed) 90000 (fixed) - 0


NEW SCALES OF PAY for other ranks
Rk Pay Band Grade MSP X Gp Pay
Pay
Sep 4860-20200 2000 2000 1400
Nk 4860-20200 2400 2000 1400
Hav 4860-20200 2800 2000 1400
Nb/Sub 8700-34800 4200 2000 1400

Sub 8700-34800 4600 2000 1400

Sub Maj 8700-34800 4800 2000 1400


HRA
X CITIES - 30%

Y CITIES - 20% (INCL VIZAG)

Z CITIES - 10%

For HRA, BP+ Gde Pay+ MSP shall be taken into acct.
CEA & TA
 CEA
maximum to Rs 1000/- for upto 2 children
 TA
increased 4 times
Offc: Rs 3200 + DA
JCO: Rs 1600 + DA
Rs 800 + DA

 DA- 40%
OTHER ALLOW
 CIE
 Field Area Allc
 High Altitude Allc
 Flying Allc
 Separate family Allc
 Siachen Allc
 Family Planning Allc
6 CPC FOR
th

RAILWAYS
ARREARS PAYMENT FOR INDIAN RAILWAY
EMPLOYEES
According to the arrear payment plan,Railways would
make 40 percent of arrear payment in the current
financial year.Rest 60% would be made in the next
fiscal.
It is expected that each railway employee will take
home an average of 21% higher salary from the next
month.
The salary increase for Group A officers will be much
more than 21 per cent and in cases of some senior
Railway Board officials, the hike is almost 50 per cent
LIST OF THE FINAL NEW PAY BANDS
PAY BAND AND GRADE PAY
* The basic pay drawn as on 1.1.2006 on the
existing Fifth CPC pay scales will be multiplied by
a factor of 1.86 and then rounded off to next
multiple of 10. This will be the pay in the revised
running Pay Band. Grade Pay, as approved by the
Government, corresponding to the pre-revised pay
scale, will then be added to the Pay in the revised
Pay Band. The total of pay in the Pay Band and
grade pay will be the revised Basic Pay as on
1.1.2006.
*Rate of annual increments will be 3% and the rate
of variable increment for high achievers in PB-3
DA AND OTHER ALLOWANCES
“Campus” restriction for grant of Transport Allowance will be
removed. Consequently, employees living in campuses will
also be eligible for Transport Allowance. Further, Transport
Allowance for the employees at the lowest levels will be
increased to Rs.600 (from Rs.400) in A-1/A class cities and
Rs.400 (from Rs.300) in other towns.

* New TA - Employees drawing grade pay of Rs. 5400 and


above will be eligible to receive TA of Rs.3200 and DA thereon
(A1/A class cites) and Rs.1600 and DA thereon (other places.
Similarly Employees drawing grade pay of Rs.4200 to Rs.4800
will be eligible to receive TA of Rs. Rs.1600 and DA thereon
(A1/A class cites) and Rs.800 and DA thereon (other places).
CONTD….
Employees drawing grade pay of below Rs. 4200 will be eligible to receive
TA of Rs. 600 and DA thereon (A1/A class cites) and Rs.400 and DA
thereon (other places).

* City Compensatory Allowance abolished.

Cycle Allowance, Washing Allowance, Cash Handling Allowance, Special


Allowance, Night Duty Allowance and Split Duty Allowance have been
doubled. Similarly, rates of allowances specific to different
Ministries/Departments/Organisations not covered in this Report will also
be doubled. The rates of these allowances will be increased by 25% every
time the Dearness Allowance payable on revised pay scales goes up by
50%.
ASSURED CAREER
PROGRESSION
Three upgradations will be granted under Assured Career
Progression (ACP) Scheme at 10, 20 and 30 years as per the
modified ACP Scheme recommended by the Commission.
ACP Scheme will also be applicable to Group A employees.

* Financial upgradation through ACP will be available


whenever a person has spent 10 years continuously in the
same grade.

* Benefit of pay fixation available at the time of normal


promotion shall be allowed at the time of financial
upgradations under the scheme. Thus, an increase of 3% of
pay and grade pay shall be available as financial upgradation
under the scheme

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