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| Pay packets fatter by 21% | | Independence Day Bonanza for Central Government Employees | | New Delhi | Aug 14
Offering a bonanza to its about 55 lakh employees, the government on Thursday approved new pay scales that would give them an average increase of 21 per cent, a move that would cost the exchequer Rs 22,131 crore.
The windfall pay revision, announced on the eve of the country's 62nd Independence Day, would be implemented from September 1, this year and the government employees would get 32 months' arrears, that too with significant improvements over the Sixth Pay Commission recommendations.
The Union Cabinet approved the effective date for the pay revision as January 1, 2006 and central government employees and armed forces personnel would get 40 per cent of the arrears this fiscal and the remaining 60 per cent next fiscal.
Finance Minister P Chidambaram said the impact of revised pay scales on inflation was taken into account when the government cleared the recommendations and the Budget deficit targets would also be adhered to.
Both the Union Budget and Railway Budget have a capacity to bear the burden on account of implementation of revised pay scale for central government employees, he told reporters after the Cabinet meeting.
He said the burden on Union Budget will be Rs 15,717 crore and Rs 6,414 crore on Railway budget for 2008-09.
Following the revision of pay scales, total emoluments of a government employee including allowances at the lowest level will exceed Rs 10,000 per month.
Government has also fixed the annual increment for employees at 3 per cent, up from from 2.5 per cent recommended by the Commission, which had submitted its report in March.
While modifying the recommendations, the government has accepted the suggestion of the pay panel for four pay bands with 20 grade pays.
"The overall average increase is 21 per cent," Expenditure Secretary Sushma Nath said. The fitment rate will be 40 per cent as against 28 per cent recommended by the Sixth Pay Commission.
The government's present salary bill is over Rs 70,000 crore and the pension bill is over Rs 30,000 crore.
At least three promotions have been assured for all defence forces' personnel and civilian employees under the modified Assured Career Progression (ACP) scheme. While the civilians would get it after 10, 20 and 30 years of service, the defence forces' jawans would get ACP in 8, 16 and 24 years.
The Commission, for the first time, recommended Military Service Pay (MSP) for armed forces personnel. The Cabinet has increased the rate of MSP for PBORs to Rs 2000 from Rs 1000. Officers of the defence forces would get an MSP of Rs 6,000 over and above their pay per month.
Middle level officers of the defence forces namely colonels and brigadiers have been placed in the highest pay band of PB-4. Senior Lt.Generals overlooked for promotions as Army Commanders due to lack of residual service would now get the grade of Army Commander (Secretary's Grade), an official statement said.
In the case of Major Generals/Lt.Generals, MSP will be taken into account notionally for fixation of pay as on January 1, 2006.
Other decisions taken by the Cabinet with regard to the pay scale includes the doubling of lowest limit of disability pension for defence personnel to Rs 3100 a month. |
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