Friday, September 12, 2008

SIXTH PAY COMMISSION:GRATUITY ,LEAVE ENCASHMENT:EFFECTIVE DATE


on Friday, September 12, 2008

In sixth pay commission report some of the benefits are given from the date 01.01.2006 and balance are given from 01.09.2008 and from date of office memo publication and am trying to sum up the position in the post.

Effective from 01.01.2006

  1. Fitment of basic pension and basic pay in new scale ,the basic formula for fitment is 1.86 of old basic ,I have created calaculator for pay fixation as well as pension you can check them for details
  2. New DA rates are also given from date 01.01.2006 rates arrears are also admissible for 1.01.06 — 0 %
    1.07.06 — 2%
    1,01.07 — 6 %
    1.07.07 — 9 %
    1.01.08 — 12%
    1.07.08 — 16%
  3. Gratuity:Increased Rate of gratuity will be allowed to persons who are retired from from the job from 01.01.2006,if gratuity is already sanctioned to you ,it will be revised
  4. Minimum Pension:Normal & family pension has been fixed minimum at 3500Pm basic.
effective date 01.09.2008
  1. All allowances Increased from the 01.09.2008.and no arrears will be paid for them , the major allownces are 
    1. TRANSPORT ALLWANCE:Campus restriction for grant of transport allownce has been removed now employee living in campus also eligible to get Transport allowncewe
      EMPLOYEE DRAWING PAY/GRADEPAY
      A-1/A CLASS CITY(RS)
      OTHER PLACES
      GRADE PAY5400 & ABOVE IN NEW PAY BANDS &HAG AND CABINET SECT 
      3200+dA there on
      1600+ da thereon
      old basic 4000 or more or new basic 7440 or more in pb-1 not covered in above one
      1600+da there on
      800+ da there on
      other less than old basic 4000 and 7440 ne pay
      600+da there on
      400 +da thereon
    2. House Rent Allwance:
      Revised classification of cities and towns on population criteria
      revised categories(old categories)
      HRA AS %of [BASIC PAY+GRADE PAY +MILITRY SERVICSE PAY (MSP*) +NPA*] *(IF APPLICABLE)
      50 lakhs & above
      X New cat(earlier named as A-1)
      30%
      50-5 lakhs
      Y new name(earlier as A,B-1,B-2)
      20%
      below 5 lakhs
      Z (earlier c or unclasified)
      10%
      House Rent Allwance:
      Revised classification of cities and towns on population criteria
      revised categories(old categories)
      HRA AS %of [BASIC PAY+GRADE PAY +MILITRY SERVICSE PAY (MSP*) +NPA*] *(IF APPLICABLE)
      50 lakhs & above
      X New cat(earlier named as A-1)
      30%
      50-5 lakhs
      Y new name(earlier as A,B-1,B-2)
      20%
      below 5 lakhs
      Z (earlier c or unclasified)
      10%

    3. Details of all allowances can be checked from here

  2. Miltary Service pay:Military service pay is allowed prospectively from 01.09.2008 ,no arrears allowed,however for fitment of basic pension of person who retires from job before 01.09.2008 ,the military pay also to be considered fo checking of 50 % of the minimum pay band .
  3. Enhanced maternity leave and child care leave of 2 year (check details from here)
  4. Leave Encashment:now you can add half pay leave if your earned leave is less than 300 days at the time of leave encashment at the time of retirement but the payment in respect of number of days adjusted on account of half pay leave will be same as it would have been paid if leave has been been availed by the person in service .and in no case it will be commuted for the purpose of leave encashment.suppose you have 250 days EL and 100 Half pay leave at the time of retirement than leave encashment will be paid for 250 days full and for 50days (300-250 days) will be paid according to half pay leave rules .and you can not commute 100 days half pay  leave in to 50 days full pay leave .(this as per circulaor dated 23.09.2008)
  5. Earned leave at the time of Ltc:purson can now avail 10 days earned leave encashment at the time of availing ltc and total in whole service restricted to 60 days .this encashment now  will not be deducted from earned leave encashment of 300 days at the time of retirement.Further It has also been clarified that  If husband & wife both are working ,then ltc leave encashment will be available to both husband & wife seprately though TA for ltc will be governed by ealier rule in this regard ( as per circular dated 25.09.2008)
  6. Family Planning allownce :fixed as per grade pay and and pay band as per detail given below
effective from 02.09.2008
  1. Linkage of qualifying service for pension:Full minimum pension 50% of last pay drawn of acg of last ten month will be allowed if service is 20 year earllier the limit was 33 years ,the persons who retires after 01.01.2006 but before publication of OM (office memo published on 2.09.2008) will be governed by the old system means qualifying service rule remain 33 year .
  2. Commutation of pension:The Commuation table has been Changed and new table is not favourable to employee ,in this table recovery rate has been increased ,but good news is this will be applicable for person who retires after 02.09.2008 .employees who has retires after 01.01.2006 to to the date of office memo are continue to be governed by old rules.However if employee want to draw the enhanced commutation on account of pay revision it will be commuted according to new table means onl;y arrear part will be commuted at new rate and old commuation will be done at old commuation rate.In berif new recovery rate has been enhanced to 8%,it means you have taken a loan at a rate of 8 % for fifteen years

required office memo is given in side bar under pay commission encyclopedia

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  1. whether a central govt employee is elligible for gratutiy who joined on or after 01-04-2004? please reply

    ReplyDelete
    Replies
    1. YES THEY WILL GET GRATUITY ,bUT PENSION IS CONTRIBUTORY

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