UPDATE ADOPTED BY GOVT ON 14.08.2008
PRESS RELEASE 14.08.2008-------------------------------------------------------
download above press release in word 31kb
press release on implementation 6th pay commissionwe are regulary updting information on sixth pay commission so subscribe free for new sixth pay commission and other tax related information.If don't like the information,you can unsbscribe any time .The subscription is totally free.
SIXTH PAY CALCULATION AFTER GAZETTE NOTIFICATIONSIXTH PAY COMMISSION PENSION CALCULATORBENEFIT TO PENSIONERS (BUSINESS STANDARD)
In a development that could well encourage more civil servants and armed forces personnel to opt for careers in the private sector, the government has decided to grant full pension benefits to all government employees
who leave after 20 years in service, against the current 33 years.(check effective date of this rule)The Union Cabinet has accepted this proposal, along with other recommendations of the Sixth Pay Commission on pension benefits for the estimated 3.84 million central government pensioners at a meeting here on Thursday. Experts said the reduction in the number of years of service to 20 years to earn full pension benefit was a liberal move and would end stagnation in government service.
Government officials told Business Standard that several other recommendations have also been accepted.
These include raising the gratuity limit to Rs 10 lakh, higher pension for octogenarians, exclusion of earned leave encashed while in service from the overall limit, clubbing of earned leave and half-day pay leave for encashment.
Pensioners to get 40% raise, more gains for octogenarians.
Octogenarians will now be paid an additional 20 per cent of their basic pension,
while those aged 85 will get 30 per cent more,
rising to 100 per cent additional pension for centurions.Officials said the final award for pensioners accepted by the government implied that central government pensioners would receive an overall increase of 40 per cent in pension. As a result the total estimated pension liability of nearly Rs 29,900 crore of the central government will go up by nearly Rs 1,400 crore annually.
Based on the Invest India Incomes and Savings Survey, 2007, it is estimated that 5.3 per cent central government employees (170,000) are likely to retire in the two years till 2009-10.
Another proposal to change the commutation formula and outsource the process to public sector banks, which would have saved the government Rs 2,344 crore annually, is also likely to have been accepted. If implemented, the government will bear only a notional subsidy on account of the interest payable to banks by employees who decide to commute a part of their pension, against the entire amount plus interest.
The central government had estimated 3,321,210 employees (excluding defence personnel) on its rolls in 2007, with the number projected to go up marginally to 3,329,682 in 2008.
MAIN FEATURES OF ORIGINAL REPORT:(read allownces rate excepted by the govt in notification)
* High performers to get 3.5% increment against normal 2.5%
(now 3% as per cabinet approval)* Enhanced pay scales for nurses, teachers and constabulary
*
Existing rates of most of the allowances to be doubled* Education allowance reimbursement at Rs 1,000 per child a
month against Rs 50 now
* Hostel subsidy to be increased 10 times to Rs 3,000
* Person stagnating at maximum of any pay band for more than a year to be placed in immediate next higher pay band without change in grade
* Performance linked incentive scheme to be introduced
*
All fixed allowances to be made inflation proof* All recommendations to be treated as an 'organic whole' as
partial implementation will bring in several anomalies and
inconsistencies.
-- Revised pay to be effective from Jan 1, 2006
-- Mkt driven compensation for young scientists & special posts
-- Contract appointment for select posts requiring high skills
-- Current age of 60 for superannuation to be maintained; no exceptions barring scientists & medical specialists
-- Number of grades reduced to 20 against prevailing 35
-- Existing parity between IAS and IFS to be maintained
-- Defence forces at par with civilians in pay and grades
-- Rs 6,000 allowance a month for officers up to brigadier rank
--
5-day work week to continue; only 3 National holidays allowed(update:not accepted by govt)--
Other gazetted holiday to go, adjusted in restricted holiday more-- Person stagnating at maximum of any pay band for more than a year to be placed in immediate next higher pay band without change in grade
--a new medical insurance scheme recommended
-- Performance linked incentive scheme to be introduced; all fixed allowances to be made inflation proof with automatic revision whenever DA on revised scales goes up by 50 per cent
* In addition, Military service Pay for all personnel of Defence Forces till the rank of Brigadier/equivalent @Rs 6000 pm for officers, Rs 4200 pm for Military Nursing Services officers and Rs 1000 pm for Personnel below Officers ranks. The Military Service Pay to count for all purposes excluding increments.
(check defence pay scale accepted by the Govt)* Base year of the Consumer Price Index (CPI) for computation of dearness allowance to be revised as frequently as feasible. Formulation of a separate CPI for government employees by National Statistical Commission for computation of dearness allowance suggested.
* Existing rates of most of the allowances to be doubled both in case of Defence Forces as well as civilian employees.
- # HRA in A-1 Cities - 30% (Unchanged)
- # HRA in A, B, B-1 Cities - 20%
- # HRA other cities 10%
*
CCA to be subsumed in Transport Allowance and the rates of this allowance to be increased by 4 times.* Travel entitlements to be paid on actuals.
* Risk allowance to be replaced by risk insurance.
* All fixed allowances made inflation proof with provision of automatic revision whenever dearness allowance payable on revised pay bands goes up by 50%. Transport allowance to be increased every year on the basis of the increase in the dearness allowance.
*
Encashment of earned leave in case of defence forces personnel delinked from the number of years of service. All defence forces personnel to be eligible of leave encashment of up to 300 days at the time of retirement/discharge.* A new medical insurance scheme recommended for government employees. The scheme to be optional for existing central government employees and pensioners. New government employees and new pensioners to be compulsorily covered by the scheme.
* Fitment formula recommended for serving employees to be extended in case of existing pensioners/family pensioners.
* Rates of Constant Attendant Allowance for disabled pensioners to be increased by five times to Rs 3,000 per month.
*
Pension to be paid at 50% of the average emoluments/last pay drawn (whichever is more beneficial) without linking it to 33 years of qualifying service for grant of full pension.* A liberal severance package for employees leaving service between 15 to 20 years of service.
*
Higher rates of pension for retirees and family pensioners on attaining the age of 80, 85, 90, 95 and 100 years.* Revision of the commutation table suggested for commutation of pension.
* In case of government employees dying in harness, family pension to be paid at enhanced rates for a period of 10 years.
* Framing of an appropriate insurance scheme suggested for meeting the OPD needs of pensioners in non-CGHS areas.
* A new mechanism for grant of advances under which an employee will take the advance from an approved bank and the government will give an interest subsidy equal to two percentage points on the rate of interest being charged by the bank to the employee. Existing limits of various advances increased and provisions made for their automatic revision periodically.
*
Continuation of five-day week. Government offices to remain closed only on the three national holidays. All other gazetted holidays to be abolished and compensated by increasing the number of restricted holidays from two to eight days in a year.* Benefits like staggered working hours, special leave for child care,
enhanced maternity leave of 180 days, better accommodation facilities in the form of working women's hostels, etc specifically for women employees
.(check datils from here update 16.09.2008)* Government employees with disabilities recommended various benefits like enhanced number of casual leave, special aids and appliances for facilitating office work, higher interest subsidy for automobile loans, liberal flexi hours, higher rate of transport allowance, better prosthetic aids and proper grievance redressal machinery. Extra allowance for disabled women employees to take care of young child till the time the child attains the age of two years.
* Lateral movement of all Defence Forces personnel (both personnel below officer ranks and short service commission officers) at appropriate levels in Central Police Organisations/central Para military Forces as well as to the various posts of defence civilians in the ministry of defence.
