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Sunday, October 7, 2007

Pay Commission Recomentations

Today one of the leading vernacular dailies of the country - Malayalam Manorama also published the recommendations of the sixth pay commission. Most of the recommendations are same as that cam in Mathrubhumi last week (http://paycommissionnews.blogspot.com/2007/09/6500-as-new-minimum-basic-pay.html ).

It says that the commission had recommended to make the minimum basic scale as 8500-275-11,800. But the Finance ministry didn't accept that. Following this  the commission recommended for 8000 as minimum basic, which was also not accepted by the ministry. As per the initial recommendation the pay scale Cabinet Secretary was 1,25,000 which was not accepted.

The main points in the recommendations are

  • The number of pay scales would be reduced from existing 38 to 16
  • After implementation from 2006 Jan to Dec, no DA will be given. DA will be given from 2007 Jan
  • The retirement date of the employees will be unified as on Dec 31 irrespective of the month they joined.
  • The increments for all employees will be given on January. A notional increment will be given for every 3 years of service. An employee will be eligible for a maximum of three such increments
  • 10pc of basic will go to PF
  • HRA - A1 cities 30pc of basic subjected to a maximum of 12000. B 1 and 2 15pc (max 8000). C 7.5pc(max 3000) Unclassified 5pc(max 2000)
  • CCA - A1 4pc(max 1200), A 3pc(max 900), B1 2pc(max 600), B2 1pc(max 300)
  • Insurance premium to be paid by different groups : A -40, B-200, C-100, D-50
  • Pension age to stay at 60. Maximum pension - 50pc of last salary (max 40000). Family pension -30pc(24000)
  • Leave encashment - 360 days
  • Commutation - 40pc