Post on 12-Jul-2015
6th pay commision would bring the
Minimum wages to be Rs 10,000 per
month
45 lakh employees are to benefit from
this hike which has taken effect from
January 2006
DEF SOUGHT FOUR & HALF TIMES INCREASE
21% RISE ON AN AVERAGE GIVEN
ALLCES EXCLUSIVE TO DEF
◦ FD AREAS ALLCES, COMPO ALLCES ETC
ALLCES COMMON WITH CIV
◦ DA, CCA, TPT ALLCE, CEA, CVY ALLCE, NPA
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 REINTRODUCED FOR DEF
FORCES
RATE OF INCREMENT 3% OF PAY BAND & GRADE
PAY. NEXT YRLY INCREMENTS FROM 01 JUL.
ALL ALLCES TO AUTOMATICALLY INCREASED BY
25% ON DA GOING UP BY 50%.
MSP INTRODUCED FOR DEF PERS. RANK PAY
ABOLISHED.
NO ARREARS FOR MSP.
ON SWITCHING OVER TO CPMFs, MSP WILL BE
COUNTED FOR FIXATION OF PAY
MSP SHALL COUNT AS PAY FOR ALL PURPOSES
EXCEPT INCREMENTS
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%
COMMON ALLCES
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
PBORs GIVEN STIPEND DURING TRG PD.
ON COMPLETION OF TRG, FULL SALARY
LESS STIPEND PAID.
NO CHANGE IN STIPEND.
Rank X Scale Y Scale Difference
Sep 3675-4725 3325-4375 350
Nk 4150-5200 3900-5175 250
Hav 5000-6500 4320-5820 680
Nb/Sub 6000-8520 5620-8140 380
Subedar 6750-9790 6600-9320 150
Sub Maj 7400-10200 6750-9550 650
DIFFERENCE BETWEEN PAY SCALES ‘X’ & ‘Y’ GPS VARY BETWEEN Rs.150 TO Rs.680. AVG DIFF Rs 410. DA & DP ALSO PAYABLE.
HENCE DIFFERENCE OF Rs 1400/- KEPT BETWEEN X & Y GPs
Rk Pay Band Grade Pay
MSP X Gp 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
Grade Pay Rate in Metro cities
Other cities
Rs 5400 & above Rs 3200 + DA
Rs 1600 + DA
(i) Rs 4200,4600,4800
(ii) Gde Pay Below 4200 but pay band = or above Rs 7440 (JCOs)
Rs 1600 + DA
Rs 800 + DA
Below 4200 & pay in pay band below 7440 (OR)
Rs 600 + DA
Rs 400 + DA
Pay Range Travel Entitlements
Grade pay Rs.9000 and above
J Class by air/ AC First Class by Train
Rs.6600 to Rs.8400 Y Class by air/ AC First Class by Train
Rs.5400 to Rs.6500 Y Class by air/ AC II Tier Class by Train
Rs.4200 to Rs.4800 (JCOs) AC II Tier Class by Train
Less than Rs.4200 (OR) First Class/ AC III Tier/AC Chair Car by Train
Grade Pay Hotel Taxi Food
Rs.9000 above
Rs.5000 50 Kms (AC) Rs.500
Rs.6600-8400
Rs.3000 50 Kms
(Non-AC)
Rs.300
Rs.5400-6500
Rs.1500 Rs.150 per diem
Rs.200
Rs.4200-4800 (JCOs)
Rs.500 Rs.100 Per diem
Rs.150
Below 4200
(OR)
Rs.300 Rs.50 per diem
Rs.100
X CITIES - 30%
Y CITIES - 20% (INCL VIZAG)
Z CITIES - 10%
For HRA, BP+ Gde Pay+ MSP shall be taken into
acct.
CEA & TUTION FEE COMBINED .
Rs 1,000 PM FROM EXISTING Rs 50 PM PER
CHILD TO MAX OF TWO CHILDREN
HOSTEL SUBSIDY RAISED FROM Rs 300 TO Rs
3,000 PM PER CHILD
INCOME TAX EXEMPTION ON ALLCES
PECULIAR TO SERVICES
INCREASE IN RETIREMENT AGE
POLICY ON LATERAL SHIFT TO CPMFs
COMMON RATION FOR 3 SERVICES
PRI SCHEME & ALLCES
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 better incentivisetheir 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.
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 divestment
of shares in PSU's to the public.
Both these measures are on the anvil and could help the
Government in bridging the gap between revenue and
expenditure.