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Cabinet nod to pay revision, ‘no’ to retirement age hike
2/19/2009 10:58:57 PM

EarlY Times report

Jammu, Feb 19: A crucial meeting of the state cabinet held here this afternoon under the chairmanship of Chief Minister Omar Abdullah cleared the pay revision issue of employees on lines on agreement reached between the employees and the cabinet subcommittee. However, the made it almost clear that it was not in favour of conceding the demand of increasing retirement age of government employees from existing 58 years to 60 years.
Quoting Chief Secretary, an official spokesman said that State Cabinet approved the recommendations of the Cabinet Subcommittee on the implementation of the 6th Pay Commission with the improvement that there shall be no lock-in period for withdrawal of arrears deposited to the GP Fund.
He said that the revised pay structure in the State will be made effective from July 1, 2009 with notional increments from January 1, 2006. The salaries for the month of July, 2009 will be drawn in the revised pay structure and disbursed to the State Government employees on August 1, 2009. Arrears will be admissible will be admissible from January 1, 2006.
However, the issue of payment of pay revision arrears to the State Government employees will be considered for settlement only after a proper and full funding for the same becomes available. As soon as funding becomes available to the State Government, for which it shall make all necessary and sincere efforts for seeking the required financial assistance from the Central Government, to meet the expenditure on account of pay revision arrears, will be made in the following manner:
Payment of arrears after, these are crystallized, shall be made to the State Government employees in five equal annual instalments; Such payments, however, shall be made in a non-cash manner, i.e., the arrears shall be credited into the GPF; and Each instalment of the arrears so paid would be credited in the GPF accounts of the subscribers (employees). The modalities of withdrawal of amounts so credited to the GPF accounts will be worked out separately by the Finance Department.
The Cabinet decided that the benefit of pay revision would also be extended to the employees working in the Public Sector Undertakings (PSUs) and made effective from July 1, 2009. For this purpose, detailed modalities will be worked out by the Finance Department in consultation with the other stakeholders.
The Cabinet also decided that the long pending demands of the employees of PSUs for conversion of COLA into DA will be given a serious consideration by the Finance Department. The daily-wage rates will be increased to a reasonable level after further consultations, as may be necessary and made effective from July 1, 2009.
By another decision, the Cabinet decided that a Committee comprising the Advocate General, Principal Secretary, Law and Parliamentary Affairs, Commissioner/Secretary, Finance and Commissioner/Secretary, GAD, will examine the legal and financial issues involved in the regularization of the ad hoc, contractual and consolidated employees and submit its report/findings in a time-bound manner before August, 2009.
The Cabinet also constituted a Subcommittee to go into the extent/magnitude of financial, legal and administrative problems related to causal workers that may arise in the regularization of such temporary workers and work out an appropriate policy in this regard.

The Minister for Finance, Law and Parliamentary Affairs will be the Convenor of the Subcommittee with Minister for School Education and Public Enterprises, Minister for Rural Development and Panchayats, Minister for Public Health Engineering, Irrigation and Flood Control and Minister for Industries and Commerce, Labour and Employment as Members.
About the demand for enhancement in the retirement age of the State Government employees, there was a consensus that it may not be possible to be taken independent of the problem of rising levels of unemployment amongst the educated youth in the State. Therefore, with a view to ensuring that a balanced view is taken in the matter, it was decided that the matter be debated at a much wider level involving all concerned stakeholders.
In another important decision the State Government today approved the extension in the term of contractual appointees till July, 2009.



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