Tarun Reflex

August 14, 2008

Sixth Pay Commission Report With Salary Calculator

Justice Srikrishna has submitted the much-awaited sixth Pay Commission report to Finance Minister P Chidambaram. According to media reports, Justice B. N. Srikrishna has recommended over 40 percent hike in the basic salary for the government employees at the senior level.
There will be a substantial hike for government employees in other categories as well. The hike may take effect from the earlier date of January 01, 2006. That means, all government employees will get huge bonanza in terms of arrears.
While the report suggested that DA (Dearness Allowances) to be hiked to 14% of basic pay, HRA in Mumbai, Delhi will remain unchanged at 30% of the basic salary. The government has also decided to merge 50 per cent of the Dearness Allowances (DA) in the basic pay of its employees. The Pay Commission report will benefit 55 lakh Central Government employee, which might the cost the government Rs.13,000 – Rs. 16,000 crore per annum. The commission was set up by government in 2006.
We just received the latest update on some of the important recommendations in the sixth Pay Commission report.
Here are those key features:
1) Lowest Salary – Rs. 7,000.
2) Education Allowances for employees having two children – Rs. 1,000/ (Earlier, it was Rs. 100/)
3) Highest Salary – Rs. 90,000/ (Cabinet Secretary)
4) National Holidays – 3
5) Gazetted Holidays to be canceled

6) Pay hike will be implemented from January 01, 2006
7) Maternity Leaves: 6 Months
8) Employees living in A-1 Cities – 30% HRA (Unchanged)
9) Employees living in A, B, B-1 Cities – 20% HRA
10) Incentive Schemes will be announced
11) New Medical Insurance Scheme to be launched for government employees
12) Market-driven pay for scientists and all other jobs that require professional skill set.
13) Total number of salary grades to be reduced from 35 to 20.

The wage hike would increase the financial implication for the Centre by Rs 17,798 crore annually and the arrears with effect from January 2006 would cost Rs 29,373 crore, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.
The government increased the minimum entry level salary of a government employee to Rs 7,000 against Rs 6,660 recommended by the Commission headed by Justice B N Srikrishna who submitted the report in March this year.
Consequently, it would push up the total emoluments of an employee at the lowest level beyond Rs 10,000 per month including allowances.
It also increased the rate of annual increment from 2.5 per cent to 3 per cent.
In the defence sector, it approved at least three assured promotions for all defence forces personnel and civilian employees under the modified Assured Career Progression scheme.
While civilians would get this after 10, 20 and 30 years of service, defence forces jawans would be promoted under ACP after 8, 16 and 24 years.
The hiked salary would be given to the employees beginning September this year and the arrears from January 2006 would be given in cash in two installments – 40 per cent this fiscal and 60 per cent in 2009-10.
The financial implication of Pay Commission on the General Budget would be Rs 15,717 crore and Rs 6414 crore on Railway Budget in 2008-09.
The government’s present salary bill is over Rs 70,000 crore and the pension bill is over Rs 30,000 crore.
Finance Minister P Chidambaram said the budget deficit target would be adhered to, despite the implementation of the Pay Commission recommendations.
The government for the first time approved Military Service Pay for armed forces personnel, under which officers would get Rs 6,000 over and above their pay per month.
The lowest limit of disability pension for defence personnel would be doubled to Rs 3100 a month.

READ MORE
DOWNLOAD Full Sixth Central Pay Commission Report (March 2008).
DOWNLOAD Sixth Pay Commission Salary Calculator(You can mail your concerns regarding the calculator at guru@css.nal.res.in) :

2576022
2576022.xls
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NEW UPDATE :: 15/August/2008 : 03:30 PM

The Union Cabinet on Thursday approved recommendations of Sixth Pay Commission. The pay panel recommendations will come into effect from January 1, 2006.Arrears will be paid in cash in two instalments, 40 per cent will be paid this year and the rest next year.Now, minimum basic pay of a government employee has been raised to Rs 7000.
All the details of new approval are available at http://pib.nic.in/archieve/others/2008/aug/r2008081405cab.pdf and/or at http://pib.nic.in/release/release.asp?relid=41333
You can download these from the links given at last of this post.
Some of the readers have asked for detailed report which has been approved by the Government. In this regard refer para 2 of the above links (reports) which states that “The Cabinet has broadly accepted the recommendations of Sixth CPC with some modifications in the wake of representations received from various sections/Associations of Central Government employees” i.e. Government has Broadly accepted same recommendations as prescribed by the CPC. These detailed recommendations are lying at http://www.india.gov.in/govt/paycommission.php. Kindly view detailed report here. The points of the approval of the are available at the above links.
DOWNLOAD PRESS RELEASE

CALCULATION OF NEW SALARY AS PER 14 AUGUST REPORT (as posted in comment)

so many employees want to know the formula for calculating new pay.
The exact amount of gross pay on 1st october 2008 will follow:—
A=basic on 1-1-2006.
B=1.86*A adding 86% DA in A. NOW B wiil be the pay in the appropriate band.
C=B + G where G is the GRADE pay against pay-band of your POST.
D=1.03*C after 3% increment,basic on 1-7-2006
E=D*1.0p if p% DA is added
F=E*1.0p again p% DA released on 1-1-2007
H=F*1.03 increment on 1-7-2007 inflation neutralised!!
J=H*1.0p DA on 1-7-2007
K=J*1.0p DA on 1-1-2008
L=1.03*K increment added on 1-7-2008
M=L*1.0p latest DA on 1-7-2008
Now add HRA, EDu etc allowances applicable to you in M ===that will give your GROSS PAY

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