BN SriKrishna justice on Monday submitted the Sixth Pay Commission’s report to the Finance Minister P. Chidambaram.
The Commission, headed by Justice B N Srikrishna, was constituted in October 2006. It had been given 18 months to submit its report. The report is expected to benefit an estimated 4.5 million central government employees.
Compared to the 200 percent hike recommended by the Fifth Pay Commission, the increase this time is believed to have been deliberately kept at a moderate level as the inflationary impact is anyways being neutralised since July 1996 through revisions in the Dearness Allowance.
These revisions, twice every year from January 1 & July 1, are in line with the formula advocated by the Fifth Pay Commission. A Central government employee’s remuneration includes a basic salary, a 50 percent dearness pay merged with the basic and a 47 percent dearness allowance of the total.
The Sixth Pay Commission probably recommending a 40 per cent hike in salary for Central government employees. With the government deciding to merge 50 per cent of the Dearness Allowance in the basic pay of its employees, the recommendation, if it is accepted, will lead to a substantial hike in salary.
Highlights of sixth pay commission:
- 45 lakh govt sector employees to benefit.
- 40% hike in salary of senior government employees.
- Substantial hike in salary of other govt employees.
- Govt to merge 50% DA with basic.
- Transport allowance to be 6% of basic for gazetted officers.
- Pay hike to cost Rs 13,000 to 16,000 crores to govt exchequer.
- Pay panel puts max govt salary at Rs 80,000 and min salary at Rs 6,660.
- 10-20% hike in HRA in Non A1 cities.
- Pension to be 50% of last pay.
- Pension revision after the age of 80, 90, 95, 100.
- New pay scale applicable from Jan 1, 2006.
- Recommends doubling of most incentive schemes.
- Recommendation for intensive scheme.
- Equal status to defence services.
- End of all gazetted leaves except three national holidays.
- Increase of maternity leave to six months.
- 5 working days a week.
- Total number of grades reduced to 20 against the prevailing 35.
- Retirement age to be increased to 62 year.