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.
Since most of the States' coffers are depleting the hike in salaries in states is unlikely to match the central government. The payout is likely to be deferred levels. Besides, many states have their own pay commissions. However, state govt employees are assessing whether it is the central pay commission's recommendations that will be more beneficial for them or the state govt's own, as state commission's recommendations are reviewed every 5 years and centre's every 10 years.
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).
The government on Wednesday said it would tax only 40 per cent of salary arrears to be paid to central government employees in the current fiscal on implementation of Sixth Pay Commission recommendations.
The reason for the largesse, a first in the revenue department, is on account of direct and indirect tax collections exceeding the target (Budget estimate) for 2006-07. Total revenue collections stood at Rs 470,987 crore (Rs 4,709.87 billion) for the year, against the targeted Rs 439,952 crore (Rs 4399.52 billion).
India's chief statistician Pronab Sen has said there is no need to construct a separate price index for government employees as suggested by the Sixth Pay Commission.
In an obvious bid to be one up on her latest number one political foe, the Congress, Uttar Pradesh Chief Minister Mayawati on Monday declared in the State Assembly that her government would promptly implement the recommendations of the Sixth Pay Commission.
While IIM-A hiked its fee in the last academic session, IIM-K recently announced to increase its fee up to Rs 900,000. The move to hike fee is being made following the Centre's decision to stop bloc grant to the institute.
Pensioners to get 40% raise, more gains for octogenarians. 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.
The government on Thursday approved the Sixth Pay Commission recommendations, heaping civil and defence staff with a salary hike bonanza on the eve of the country's 61st Independence Day.
The Rs 10,807-crore (Rs 108.07 billion) budget for implementation of Sixth Pay Commission recommendations and to fund various ongoing projects was passed by a voice vote. Some members were not satisfied with the budget. The BJD members walked out alleging that Orissa had been ignored.
The welfare of the common man continues to be the top priority. The minister has reduced fares for the fourth successive year.
The action was expected to affect the general efficiency levels of the Railways and could also eat into its profit margins estimated at a minimum loss of around 20 per cent margins compared to last year, claimed IRPOF. It, however, clarified that the officers will not take any action that will cause inconvenience to the general public.
The Centre was mulling more incentives for paramilitary personnel, especially those deployed in the border areas, and bring parity among all the forces in terms of pay and other perks
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.
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 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 over 1.6 million employees of central public sector companies are demanding a salary increase of over 100 per cent, saying the average 40 per cent raise recommended by the Sixth Pay Commission for government employees is not enough. Salaries of public sector workers were last revised in 1997 and were scheduled for the next revision on January 1, 2007. The average gross monthly salary an ONGC executive earns today is between Rs 40,000 and Rs 50,000.
In far-reaching reform measures to the salary structure of an estimated 4.5 million central government employees, the sixth Pay Commission report submitted to the finance ministry today recommended an across-the-board effective salary hike of about 28 per cent, performance-linked increments, fewer holidays and a new medical insurance scheme.
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.
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.
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 central government babus have been given a big hike in TA/DA (travel allowance/dearness allowance) as part of implementation of the Sixth Pay Commission, but it may be only illusory as ministries and departments will get no additional funds to foot their bills.
Income tax at source would be deducted only on 40 per cent of salary arrears to central government employees in the current fiscal on implementation of Sixth Pay Commission recommendations, government said on Tuesday.
The Planning Commission does not foresee any significant disruption of state finances on account of increase in salaries of state government employees.
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.
Both the forces were of the view that inclusion of its personnel who have joined the service on or after January 1, 2004 in the new contributory pension scheme launched by the government was unfair.
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.
The minimum wage of Rs 80, which is applicable to central public sector undertakings, will see a 30 to 40 per cent jump in a single year once the changes are notified. The decision to hike the minimum wage level was taken by the Central Advisory Board at its meeting chaired by Minister for Labour and Employment Oscar Fernandes last week. The National Floor Level Minimum Wage of Rs 80 is likely to cross Rs 100 once the notification is issued.
Resources alone will not make the Indian armed forces the envy of its adversaries. It is the policy direction that is set by the military leadership and the quality of training imparted to its manpower that will make the difference. The debate on the wide-ranging changes that India's defence set-up needs should have been initiated long back by the armed forces themselves.
Despite the government's efforts to control prices, inflation continues to rise and is now at its highest in over thirteen years, as prices of pulses, spices, eggs, fish and meat among other things continued to rise.
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 is likely to significantly raise basic salaries for an estimated 4.5 million central government employees. The recommendations are expected to be submitted in January, a few months ahead of schedule, and the award is likely to come into effect from January 2006.
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.
While the Cabinet secretary, who can be equated to a CEO of a company, has been recommended a Rs 90,000 salary per month (over Rs 1 crore or Rs 10 million per annum), all others, despite the hefty hikes recommended will still earn less than Rs 1 crore a year.
In a significant gesture to the men in battle fatigue, the Sixth Pay Commission on Monday elevated the three defence services chiefs to be among the highest paid public servicemen drawing a salary of Rs 90,000 per month equivalent to the cabinet secretary. The 3 chiefs were drawing a fixed monthly pay of Rs 30,000 per month. The Commission elevated the rank of the Director General Armed Forces Medical services to the Secretary, Government of India, with a salary of Rs 80,000.
The Sixth Pay Commission on Monday submitted its report to the government, presumably recommending a 40 per cent hike in salary for central government employees.
Trade unions on Wednesday opposed divestment in public sector undertakings and hike in foreign direct investment in telecom, insurance and aviation sectors
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