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Showing posts from September, 2007

6500 as new minimum Basic Pay

An article that came in Malayalam daily - Mathrubhumi It is known that the sixth pay commission has decided to unify the increment dates and retirement dates for all the central govt. employees. Accordingly the retirement date will be December 31st and the increment falls on January 1st. The minimum basic pay will be 6500. The pay commission chaired by Justice B N Shrikrishna has decided to reduce the number of pay scales from existing 39 to 16. The retirement ages will stay at existing 60 years. Based on the speculation of the mid-term poll, the finance ministry has asked the commission to submit the pay structure alone. The detailed report will only be submitted later The recommendations will be to implement the scales with effect from January 2006. However the arrears due to the additional allowance will be calculated with effect from January 2007. The commission has recommended from 6pc DA from January 2007 and 14pc from January 2008. As per the recommendations, the minimum ba

New Proposed scales

The new pay scales to be proposed by the sixth pay commission 6500-150-9500 7000-200-11000(auxiliary staff- Gr D) 7500-250-12500 10000-300-17500(supporting staff - C) 12500-400-22500 15000-500-27000 (supervisory staff,B,non-gazetted) 17500-650-30500 (asst. officer) 20000-8000-36000 (junior scale) 25000-1000-40000 (senior scale under secretary) 30000-12000-48000 (deputy secretary) 42000-1400-55000 (director) 60000 (fixed) (joint secretary) 65000 (fixed) (additional secretary) 70000 (fixed) (special secretary) 75000 (fixed) (secretary) 80000 (fixed) (cabinet secretary) source : http://www.mathrubhumi.com/php/newsFrm.php?news_id=1246813  (Malayalam)

Tenth anniversary of Fifth Pay commission

This month is the tenth anniversary of the United Front (UF) government’s profligate decisions on the report of the Fifth Pay Commission (FPC). It’s an event worth recalling (though not celebrating) for at least two reasons. First, these decisions had serious adverse consequences for India’s economy and public finances lasting through most of the Ninth Plan period (1997-2002). Second, with the Sixth Pay Commission (SPC) launched last year and its report expected in late 2008 or early 2009, it is interesting to speculate about the possible outcome, which could impact significantly on India’s future development trajectory. Back in 2001 I wrote “the FPC effects constitute the single largest adverse shock to India’s strained public finances in the last decade, with corresponding negative consequences for aggregate savings and investment in the economy”. Six years later I stand by that assessment. The September 1997 decisions resulted in pay and pension increases of 40 per cent and higher

Pay commission could derail government finances

A fresh wave of fiscal profligacy threatens to undermine four years of hard-won improvements in Indian public finances. The Sixth Pay Commission, set up last year to recalibrate the wages of 5.5 million federal government workers, is scheduled to submit its report in April 2008. If the panel is anywhere near as generous as its predecessor 10 years ago -- the Fifth Pay Commission recommended a 31 percent increase in base salaries, effective from 1996 -- the economy will pay a heavy price.   Such wage increases would crimp the Reserve Bank of India's ability to cut interest rates next year, should slowing global growth and rising risk aversion warrant monetary easing. The ruling Congress Party's alliance with Marxist groups is in trouble over the latter's opposition to an India-U.S. civilian nuclear agreement, and many analysts expect Prime Minister Manmohan Singh to call for elections some time in 2008, one year ahead of schedule. It's quite likely, therefore, tha