Analysis of the 7th Pay Commission's recommendations.
Police officers, criticising the recommendations of the sixth Pay Commission have told the government that the commission has overlooked the fact that the threats to internal security are perhaps more recurrent and damaging today than actual threats of aggression from external enemies. IPS officers have also criticised the commission for not only maintaining, but increase the edge that is given to IAS officers over them.
The Pay Commission is an administrative system/mechanism that the government of India set up in 1956 to determine the salaries of government employees. The First Pay Commission was established in 1956, and since then, every decade has seen the birth of a commission that decides the wages of government employees for a particular time-frame.
The government may defer the implementation of the sixth Pay Commission award by a year or even two to reduce the fiscal burden of the recommendations that proposed a 28 per cent across-the-board salary increase for an estimated 4.5 million central government employees. The report of the commission headed by Justice BN Srikrishna was submitted to the government on March 24 this year, nearly a fortnight before its 18-month tenure was to end.
India Inc has welcomed the Sixth Pay Commission report that suggested an average increase of 40 per cent in salaries of central government employees and said the move will not lead to a rise in inflation and revenue deficit of the government. Industry body Ficci said the pay hike would not add to inflationary conditions and revenue deficit due to buoyant revenue collections. Also, Ficci said the hike would reduce the problem of governance and attract talented personnel.
Prime Minister Manmohan Singh has approved composition of the 7th Pay Commission, which will revise the salaries of over 50 lakh Central government employees.
The setting up of the Commission, whose recommendations will benefit about 50 lakh (5 million) central government employees, including those in defence and railways, and about 30 lakh (3 million) pensioners, comes ahead of the Assembly elections in 5 states in November and the general elections next year.
In a major New year bonanza for the armed forces, the Prime Minister's Office has informed the defence ministry that the armed forces personnel would henceforth have a separate pay commission, which is delinked from the civilian pay panel.
Govt is likely to find it hard to meet deficit target next year.
'The high court notice could go some way in easing the vitiated civil-military relationship, and the trust deficit between civil servants and the military.'
Sixth Pay Commission has urged the government that all Indian Telecom Service (Group A) officers be absorbed in the public sector telecom service providers, Bharat Sanchar Nigam Ltd & Mahanagar Telecom Nigam Ltd, or sent to the surplus pool. It has also suggested winding up of the Telecom Commission saying BSNL and MTNL now provide extensive services along with several private sector operators. The report states there is no need to retain the 2400 cadre strong-ITS (Group A).
BSE 200 companies together paid 5,819.75 crore as remuneration to their CEOs and directors in FY25, up from 5,352.8 crore a year earlier.
The notification with regard to the Sixth Pay Commission award is ready and is currently being approved by statutory authorities. Sources said the dearness allowance effective this July is also likely to be announced the same day.
Madhya Pradesh has nearly 750,000 employees who would share the benefit of the pay hike.
Former chief secretary Indu Kumar Pande, the chairman of the commission, has been left with only seven months to complete the recommendations.
Ratcheting up their protests one notch, the three service chiefs met Defence Minister AK Antony today to tell him the Sixth Pay Commission's recommendations relating to the services were inadequate and would not prevent attrition. The three chiefs said they wanted an average increase of 50 to 60 per cent in salaries, whereas all the pay commission offered was 28 to 33 per cent hike.
The Commission will now have time until December 31 to submit its report.
The Planning Commission does not foresee any significant disruption of state finances on account of increase in salaries of state government employees.
Railway Minister Lalu Prasad has asked PM Manmohan Singh to review the sixth pay commission report. He said recommendations in the report would promote disparities among the different sections of government employees. The review should be made with regard to the Railways, as there was a lot of unrest among the rail employees and they were threatening to go on strike. A representative of the Railways -- the Finance Commissioner or Member Secretary -- would be on the committee.
The Sixth Pay Commission on Monday submitted its report to the government presumably recommending a 40 per cent hike in salary for the central government employees. The commission, headed by Justice B N Srikrishna, submitted its report to Finance Minister P Chidambaram on Monday morning.
A committee headed by Cabinet Secretary BK Chaturvedi has turned down the request for constituting the Sixth Pay Commission to review the salaries and perks of all central government employees.
Do you think the new pay panel proposals will cripple India's economy? Are political compulsions overriding economic sense? Or do you think this is a fair move? Tell us.
The Centre on Tuesday asked the UPSC to withdraw the latest advertisement for lateral entry in bureaucracy, amid a row over reservation in the advertised posts.
Civil servants, armed forces and paramilitary personnel will get to rejoice this Independence Day with the government all set to approve the Sixth Pay Commission report in its Cabinet meeting on Thursday.
Uttar Pradesh Chief Minister Mayawati on Monday announced the state would revise the salary of an estimated 721,000 employees on the lines of the pay panel recommendations. The state commission, headed by Jagmohan Lal Bajaj, will submit a report on pay revision by December. The additional financial burden is estimated at Rs 5,189 crore (Rs 51.89 billion) per annum excluding arrears payment, which is pegged at Rs 14,775 crore (Rs 147.75 billion).
The Defence sector is unhappy with the Sixth Pay Commission. The points of discontent include the fact that the Military Service Pay will only begin from the date of acceptance of the award possibly 3 months from now even as their civilian counterparts will get salary arrears from January 2006 onwards. Defence officers want to be compensated for the interim period vis--vis their civilian colleagues. They are also unhappy with the quantification of arduous service conditions.
The Centre will set up a high-level committee of secretaries for processing the Sixth Pay Commission's report for its employees. The Empowered Committee of Secretaries will be headed by Cabinet Secretary K M Chandrasekhar, Science and Technology Minister Kapil Sibal said after the Cabinet meeting.
IIM Ahmedabad will provide a performance-linked pay model to the Sixth Pay Commission which has been assigned the task of recommending revised pay scales for central government staff.
The Sixth Pay Commission on Monday recommended an increase in the salary of chairpersons of regulators, including Sebi, Trai and Irda, to up to Rs 300,000 per month and delink them from government salaries, a move to attract expertise from outside the government. Those appointed as members through the revised process should be paid a consolidated salary of Rs 1,50,000 per month, while the chairperson may be paid Rs 2,00,000 per month, in case a car and house are provided.
After army personnel and IPS officers, other government employees have now voiced their grievances against the Sixth Pay Commission report, saying the recommendations do not correspond to the increased cost of living but will increase inequality.
Faculty of top academic institutions like the Indian Institutes of Technology (IITs), the Indian Institutes of Management (IIMs), and central universities say the Sixth Pay Commission's recommendations do not have a direct bearing on their compensation levels. The new pay structure of assistant professors, associate professors and professors will be finalised by an internal committee of the Ministry of Human Resource Development, which would take a couple of months at least.
Expecting brickbats from Babus for recommending only about 40 per cent hike in pay, the Sixth Pay Commission chairman Justice B N Srikrishna on Monday said his recommendations would displease everbody.
The recommendations of the 6th Pay Commission, if implemented by the Central government, could result in major negative impact for the fiscal position of the country, though it could be positive for consumption, according to a leading investment banker. The review said assuming the 6th Pay Commission's recommendations were implemented fully, "we judge the impact on the economy should not be as negative this time round". Impact of 5th pay commission was unambiguously negative.
A confrontation is brewing up between the Jammu and Kashmir government and its over four lakh employees over the implementation of the sixth pay commission recommendations.
It is not that the government has not done anything to change the format of the annual performance appraisal report, but it is hard to tell what difference these will make.
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