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Pros and cons of Sixth Pay Commission and its impact on people

New Delhi, Tue, 25 Mar 2008 Noor En Ahmed

The sixth pay commission yesterday submitted its report to Union Finance Minister P Chidambaram recommending hefty increment in the current salary of Central Government Employees to establish the government employees equivalent to private sectors’ employees, as per sixth pay commission claimed in its report.


The Commission has recommended hiking 20- 40% salary from the current salary structure and it would now be two to three folds in terms of gross salary as against the current basic salary. This margin increment would put an additional burden on Central Exchequer of Rs. 7,975-crore per year while a lump sum of Rs. 18,060-crore will be spent in paying the credit money of employees in the form of arrears as the commission has recommended to implement the salary structure from January 01, 2006 and the difference of this period would be paid in the ‘arrear’ form, as per the commission’s submitted report.

The minimum salary, as per commission’s recommendation would be Rs.6,600 while the maximum salary would be Rs. 80,000 (except Central Secretary’s salary that is recommended to Rs.90,000-per month) that will be two to three times from the current basic salary and will damage the exchequer of states as now the states will also have to follow the Central’s pay structure because the states’ employees will demand the similar status from their government.

As per pay commission’s record, the recommendations of the second pay commission had put the additional average burden on exchequer of Rs. 39-crore that were extended after every pay commission’s recommendation. It rose to Rs 144 crore, Rs 1,282 crore and Rs 17,000 crore in the third, fourth and fifth recommendations respectively.

Now, it is estimated that it may go to Rs.20,000-crore (excluding savings of the states) in the 2008-09, while pay commissions earlier reported that up to 90% of the total revenue were spent only in paying the salary and pension of the employees and beneficiaries. This recommendation might prove the ‘panic’ decision for the state governments.

On the other hand, for the employees and pensioners, this recommendation can be proved as a ‘golden hen’ that can boost the living status of the government’s employees and can also eradicate the complaint of the beneficiaries who always accuse ‘government’ for giving such low salary in which they can hardly survive in these inflammatory circumstances.

A lower and lower-middle class family (the maximum number of persons belongs to these categories and highly depended on their salary) usually seeks the normal living standard including bread-and-butter, cheap and best shelter, moderate clothes, good education for their children, sufficient medical facilities, average status of marriage of their children, reasonable living status and adequate money after retirement. The pay commission evaluates all these things and decides the parameter of the salary scale as it claims.

According to sixth pay commission report, ‘It was mandatory to raise the broad increment in the government employees’ salary to prevent the migration and to compete with the private sectors.’ The trend of migrating from government jobs to private sectors jobs have been increased since last four-five years as the salary difference between both the sector’s employee were increasing rapidly.

What is Pay-Commission and why government needs to establish it?

A pay commission is a group of some honorary members of selected areas that is organised by the Union Cabinet to examine several aspects of government’s employees’ compensation package and living standard that include pay and allowances, retirement benefits, conditions of service, promotion policies. The Central Pay Commissions have been set up so far at the gap of 10 to 13 years. The first pay commission was established in 1946, second in 1957, third in 1970, fourth in 1983, fifth in 1994 and sixth pay commission was set up at a largest gap of 22 years in 2006.

While fixing the salary of the government’s employees, the pay commission analyses the growth rate of the nation, the rate of inflation, the growth rate of per capita income, the changing trend in the living standard and the employees’ share in the respective field of working.

The general criteria of fixing salary

Usually, pay commission first fixes the lowest level of salary and then the highest; after this it becomes easier to determine other salary brackets. The commission also considers about the gap between the post-tax salary of minimum and maximum and set up according to requirement.

In the first pay commission’s recommendation, the difference ratio was 1:55 times while it became 1:16 in 1996. Now, in this newly recommended report, commission has established the salary ratio of 1:12 (minimum Rs.6,600-maximum Rs.80,000).

Useful Links: Sixth Pay Commission has updated the salary calculator. User can calculate their salary by clicking the following links: http://6pc.in/calc/


Read More: Chidambaram

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Comments:

K.SREENIVAS

August 31, 2010 at 12:00 AM

Is sixth pay commission notimplementing in army schools?why?Why there is huge discrimination in salaries from KV PRINCIPAL TO ARMY SCHOOL PRINCIPAL? PLEASE CLARIFY MY DOUBT TO MY ID.

s.manju

November 13, 2008 at 12:00 AM

Sir, Iam teacher in KENDRIYA VIDYALAYA SANGATHAN I would explain teachers with graduate qualification have no promotional chances except change of grade after every 12 years.This also our orgonisation not giving next scale to grade II which in justice Please enlighten by sending e-mail to my ID.

D. MAGESH PETER

November 10, 2008 at 12:00 AM

I AM A STAFF OF NATIONAL INSTITUTE OF OCEAN TECHNOLOGY I HAVE BEEN A CONTRACT STAFF SINCE YEAR 2002 AND I GOT PROMOTION IN MY POSTING IN THE YEAR 2005 IN THESE SAME INSTIUTE AND CONTINUNG THE SERVICE IN THE SAME INSTITUTE AND BECOME PERMANENT WITH THE CONTINUING PAY SCALE AS CONTINOUS SERVICE AM I ELIGLIBLE TO GET MY AREARS FROM 2006 ONWARDS ARE NOT.

R.Shankar

September 21, 2008 at 12:00 AM

Data Entry Post was created to give better prospects to LDCs. A competative examination was conducted and promotion was given accordingly. But now in sixth pay commission the plight of Data Entry Operator 'B' is very horrible. The junior who had failed in the competative exam then has already been promoted to scale of 5000-150-8000. But DEO 'B scale is only 4500-125-7000. The DEOs are repending for passing the competative exam and getting a low scale by sixth pay commission. The government needs to look into the matter regarding upgradation of the scale of DEO 'B' to 5000-150-80000.

Sunil

September 12, 2008 at 12:00 AM

I have been awarded ACP in 2004 on completion of 12 Yrs. My pay scle revised to Rs 5500-175-9000 from old pay scle Rs 5000-8000.

As per sixth cpc (10,20,30)promotion policy, my juniors those who are completing their ten Yrs of service in Jan 06 will get a promotion, step up in grde pay Rs 4600. This mean my juniors will draw higher pay than me and also enjoy the higher status as per pay scale formation.
kindly advice me what will be my pay if my juniors gets higher pay scale than me? Please tell mee when will be my next promotion as per promotion policy?

thanks

Shreedharan Nair

September 11, 2008 at 12:00 AM

This is regarding Data Entry Operator?s miserable plight.
The initial pay fixed for DEO-A (Rs.4000-100-6000) which was higher than that of Adm Asst ?A?, (Rs.3050-75-4900) and when an Adm Asst achieves the grade of ?C? their pay becomes equal to that of DEO ?C? (Rs.5000-150-8000) and thereby not maintaining the proportional pay status and thus nullifying the initial difference given to the DEO?s. (In fact the govt lured the employ to join the DEO cadre by giving higher pay scale, to ease the stagnation in the LDC Cadre, and subsequently the DEO Cadre just dumped and ignored as if DEOs are unwanted.
The Vth Pay Commission gave even worse blow by placing the pay scale of Rs 4500-125-700 in the PB-1. Many of the DEO?s lost their valuable earlier service before changing to DEO cadre, thus affecting their ACPS also. Thereby from both sides, DEOs are made to suffer.
Anybody in the Pay Scale Review Committee will look into this injustice injected to DEOs.

a.prakash

September 2, 2008 at 12:00 AM

disabled ex servicemen having 50% or more disability attributable and/or aggravated by military service may be sanctioned suitable transport allowance to meet the urgent and inescapable requirements. at present some of them can't take themselves/their families who also invariably are senior citizens even to the hospital for medical treatment etc

s.k.sinha

August 24, 2008 at 12:00 AM

i have a basic salary of Rs.8500 and Rs.12750 after DA.what would be my gross salary after the sixth pay commission?

Rawat

August 20, 2008 at 12:00 AM

It is very bad for Data Entry Operators in the Pay Scale Rs 4500-125-7000, becoz we take the dictation, designing of web pages, software designing, making presentation, letter and noting drafting, filing, statistical reports, maintaining data, entry of data, programming, work for administrative and account departments and looking and helping to each person of the organisation to resolve the problems. Working on special assignments, field work, late sitting till 10.00 pm. What the pay Commission give us.... nothing just a Small Peny...... We request Sixth Pay Commission kindly includes for the payscale of Rs 4500-125-7000 to Pay Band - II, Rs 8700 and Grade Pay - 4200. We are recruited Direct with the Minimum Qualifications of Graduation and We have Post Graduation and there is no promotion avenue,

R.B.GAUTAM

August 16, 2008 at 12:00 AM

I HAVE BASIC SALARY 6600 RS AND TOTAL GROSS INCOME 19000RS SO WHAT SALARY I WILL GET AFTER THE IMPLEMENT OF 6TH PAY COMMISSION

G.C.Mouliswer

August 1, 2008 at 12:00 AM

The 6th CPC will disourage the educated to join in the Government Service. In A.P State Government appointed 9th pay commission.What is the sanctity in appointing Central P.C. and State P.Cs separately.It appears that Govt. is likely to implement the scales w.e.f 1st. July, 2007. What is the fate of employees retired in between 1.1.2006 and 30.6.2007

R.sridharan

July 19, 2008 at 12:00 AM

it is only an eyewash business that too catagory like Group-B is the most affected catogory. let the Govt make arrangenents to merge the TWo grades in Gr.B

pjs

July 6, 2008 at 12:00 AM

when atlast the government will declare the reviewed report of the 6th cpc. its high time now, as any time the govt. may tremble due to withdrawal of support by t he left parties.

AD

June 15, 2008 at 12:00 AM

6th Pay Commission was wastage of time for everybody except 3 or 4 influential services. Those who have no influence will never get better deal irrespective of their contribution, as their efforts are taken as a credit by dominant services. It was not worked out that what % of these services is actually taken interest in performing.
( i.e. ground performance and not in paper or ppt.slide, the content of which is actually sourced by other men.)
Pay Commission has taken no interest to identify such area and also where a small no. of cadre is performing for better goal without enjoying status as these are not authorized to them. Then who is corrupt and who is generating corruption?

manoj

May 30, 2008 at 12:00 AM

GOVERMENT OF INDIA LAMENTS THAT SCIENCE EDUCATION AND STATE OF SCIECNE IS IN DISMAL STATE IN OUR CONTRY . HOW CAN YOU IMPROVE THIS STATE IF SCIENCE EDUCATION WITHOUT GIVING GOOD SALARY TO LAB ASSISTANT OF DELHI SCHOOLS. THEIR SALARY IS CONTINUOUSLY GOING DOWN AND DOWN AFTER FOURTH PAY COMISSION AS COMPARED TO TEACHERS

P S JAGTAP

May 23, 2008 at 12:00 AM

the position af any lab. asst. in indian schools is that of neither / nor. schools of autonomous bodies are run more badly then schools of fully govt. bodies. you will find anarchy in shools of autonomous bodies. unruly transfer and promotion policy prevails here. harassment of the sub-ordinate staff has become a rule . psychophants are given more weightage than a hardworker. the working condition has dampen a lot. this very aspect of school system was totally neglected by the 6th pay commission. this feeling of insecurity among the staff has led to further degradation of real education. justice was never their for indian school staff right from gaining india's independence. the condition of the staff is becoming pathetic day by day. that's the reason talented staff never turn up for this job.

T.N.RAO

April 10, 2008 at 12:00 AM

Sir,
Iam teacher in KENDRIYA VIDYALAYA SANGATHAN I would explain teachers with graduate qualification
have no promotional chances except change of grade
after every 12 years.This also our orgonisation not giving next scale to grade II which in justice
Please enlighten by sending e-mail to my ID.

Sanjay Sahani

April 7, 2008 at 12:00 AM

Why is the so hype created by the Government about the increse? If you see the actual gross it is actually only 20-25% of salary. Is it enough? This is the structure which will remain for the next 10 years. With this increse govt. should not expect good talents from reputed engg./medical institutes to join the scientific jobs. With the pay package in the private you just fooling the people. Good talents surely cannot cope with the frustrated pay pacakge. Then why to stay in ISRO/DRDO/DAE.

BC MISHRA

April 4, 2008 at 12:00 AM

dearness relief may be entitled to def officer pensioner on reemployment. Pension is an indep issue & paid for service rendered in the past under difficult situation.May be considered. regards

Pandiarajan.S

March 28, 2008 at 12:00 AM

There is a wide disparity in pay structure in Sixth Pay Commission when the officials promoted from lower cadre to higher cadre especially from B to A Grade are losing the benefits.Regarding Transport Allowances,the cost of Fuel & Maintenance does not vary much for urban (cities)and rural/Town areas.

Sushanta

March 28, 2008 at 12:00 AM

Why the commision stopped the CCA?What is the banifit for Group 'D'&'C' Employees.After 10 years they have benifited only 20%on there present seleray. This is not a correct sixth pay commission.

Kamal Nain

March 26, 2008 at 12:00 AM

The main loosers in the report are UDCs as they have given 400 as Tpt. allowance and abolish CCA of Rs.200/-. Can anybody travel for 22 days even in city bus with this meagre sum of Rs.400/-

Amarnath Sharma

March 26, 2008 at 12:00 AM

6th Pay Commission has very cleverly cheated lakhs of central employees.By ignoring DP employees have been denied what they were actually getting on 01.01.2006.

JAI PRAKASH

March 25, 2008 at 12:00 AM

SPC has shown a way to Private Sector with this disappointing pay structure. Engineers & Scientist will love to leave the govt. bodies easily and this easier way is given by the SPC.

MD RAZIA SULTANA

March 25, 2008 at 12:00 AM

SIR,

THIS IS NOT CORRECT SIXTH PAY COMMISSION. INDAI IS A POOR COUNTRY. THEY WILL INCREASE ONLY GR.C GR D. OTHERWISE INCREASING HIGHER SALARIES LIKE 80,000, 90,000 INCREASING ONLY 50,000 & 60,000. LOWER CLASS EMPLOYEES ONLY POOR SALARIES GIVEN THE GOVT. ALL ESSENTIAL ITEMS AS LIKE PROVISIONS TOO MUCH INCREASING. HOW CAN MANAGE THE LOWER CLASS PEOPLE. FESTIVALS WAS CUT. R.H. ONLY GIVEN. THIS IS NOT CORRECT. ALL FESTIVALS WILL GIVE HOLIDAYS SAME AS PREVIOUSLY

S.K.DASTIDAR

March 25, 2008 at 12:00 AM

Actual increase is very less only 15-20%.This will only attract ordinary people to join in central services.

CL DIVAKAR

March 25, 2008 at 12:00 AM

Why the commision stopped the CCA? Another funny recommedation made is combining the transport allowance with DA! Media is talking much about the financial commitment. Imagine how much revenue we spent unnecessarily in maintaining these stupid politicians.How much revenue and effort we spent in maitaining Kashmir. The amazing thing is not even a single person wanted to be with India. We are nuts ! Coconuts

vishal

March 25, 2008 at 12:00 AM

this is not a good pay commission , i m already tempted to leave DRDO, goverment may not get the people with the good skills , in fact all people are not BABUS , we are some of the young enginereein graduate people who have joint DRDO , but i feel nobody will continue in DRDO

jacob

March 25, 2008 at 12:00 AM

i dont understand why there is so much of hue n cry about this pay commission. we are getting what we deserved 10 years back and nt now..
this report is going to benefit just one body ie government.
while a cosolidated memorandum was placed by armed forces , none of the demands have been met. a 40 % increase after 10 years is injust specially when country is doing leaps n bound in economy. pay commission recommendations are not even half of what deserved, none of the new incentive like retention pay, better HR plicy more transparent policy on retirement has been made. while armed forces asked for 450% hike from previous scale which would have doubled the take home salary and would have done something to do the injustice.
only a margin has been recoommended for increment.
the other area which was bad was annual increment.
as an class one officer i got an increment of rs 300 annualy this report has just sprayed some salt on the wounds ny taking it to 2.5 % or about 500 rupees i can only buy peanuts with.
the other point is starting from lieutenantto colonel , all have been placed in same pay group, which translates into the fact that there is nothing to look upto for being promoted. you remain in same group. yu are taking just one annual increment extra, which is bad as i told.
coming to the allowances. all the allowances have been recommended to increase by 100 % . sounds good..
it aint.
this is the amount which we should have already be getting if the allowances were catered for inlation at moderate rate..
hence there is no increment in allowances.
coming to flying allowance it has met the same fate. by just doubling it has taken it to level which was aready recommended in fifth pay commission. though that was rolled back later to present scale.
which effectively means this is not going to settle the disgruntlement amongst the pilots who are already paid one tenth of their civil conterparts inspite f working condition and risk being ten times higher.( the stastics of accident / incident in civil and military clearly proves this)
i think it will again arouse the people who were waiting for the recommendation on line with the defence memorandum.
ii think the ball is in finance minister curt to take a review and take the decision accordingly.
while its also for media to bring out the correct picture and not the hyped one.
if you want i can send you the joint services memorandum to sixth CPC.

prakash

March 25, 2008 at 12:00 AM

the govt.should consider opening the doors once again for premature retirees of the armed forces
who had left in 2004,2005 ,2006
this would get back talent and the shortage of officers would get fulfilled soon

ramesh

March 25, 2008 at 12:00 AM

What is so great in giving a 2000-3000 Rs hike for an engineer/scientist with 10-15 years of experience and also after a span of 12 years.
The annual hike of an IT employee is far more than this.
Even a data entry operator gets more than what an engineer gets in private sector.
Does the public ever think that their basic services can not be met if genuine pay is not provided for qualified people.
Why the media is so panic about a meeger 10% increase from present levels?

Sunil Ku Sahoo

March 25, 2008 at 12:00 AM

There is nothing for contract ( Year wise contract or 179 days contract ) employee.

A K GUPTA

March 25, 2008 at 12:00 AM

The CPC recommendations are not better for employees. It will force to intelligent employees to leave the govt sector and to go to private sector. Only a minor increment of Rs. 2000-4000 has been given however the inflation is very high.

Must be revised in old pattern and increment as per the inflation rate.


 

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