PSU-NEW PAY SCALE DETAIL

PAY BONANZA FOR EXECUTIVES OF CPSU
The Government has approved the Ministry of Heavy Industry’s recommendation for
pay revision of the executives of the Central Public Enterprises. The Minister of Heavy
Industry and Public Enterprises, Shri Santosh Mohan Dev highlighted a few important aspects
of this pay revision at a press conference in New Delhi .
He said, “this was the best ever package given by any Central Government to the executives of CPSE. The entire exercise was based on the premise that the existing disparity between the salary of private sector and the salary of the public sector executives should be minimized as far as practicable. This will certainly lower the feeling of deprivation amongst the Central PSU executives and also arrest the attrition of employees who are migrating to private sectors.”
The Minister said this package has been finalized in the fastest possible mode. The 2nd
Pay Revision Committee was constituted in November, 2006 with Justice Rao as the
Chairman and Dr. Nitish Sen Gupta, Dr. Parakh and Shri Bhaskarudo as Members. The
Committee submitted its report on 30th May, 2008.
Shri Santosh Mohan Dev said that in this package, the ministry has taken care of not
only the salary structure but also the future growth, so that the executives are encouraged to
perform better.
The salient feature of the decisions of the Government which have been taken today for pay revision of CPSE executives are as follows:-
􀂾 There would be a single set of pay scales for below Board level executives with an
elongated span, which includes the Risk Pay at the minimum and maximum level
instead of 5 sets of scales of pay. The revised pay scales are being circulated to you
separately.
􀂾 The Government has decided to give uniform fitment @ 30% of Basic Pay + DA as on
01.01.2007 to all executives, instead of graded fitment of 3% to 42%.
􀂾 Government has decided to give running pay scales for Directors and CMDs
depending upon the schedule of the CPSE, by including Risk Pay at the maximum
instead of Fixed Pay, which was suggested by the Committee.
􀂾 The existing categorization of CPSEs into 4 schedules will continue.
􀂾 The Government has accepted the recommendations of the 2nd Pay Revision
Committee with regard to Dearness Allowance, House Rent Allowance, Leased
Accommodation, City Compensatory Allowance, other allowances/ perks, Variable
Pay/ Performance Related Pay, Performance Management System, Remuneration
Committee, Long Term Incentives, Cost to the Company, retirement age and
Superannuation Benefits.
􀂾 The benefit of one additional increment for every two increments would be provided to
mitigate the problem of junior and senior executive getting the same pay.
􀂾 A uniform rate of annual increment as well as stagnation increment @ 3% of Basic
Pay in all CPSEs will be adopted.
􀂾 The Government has even provided pay increase to the marginally profit making
CPSEs at the fitment of 10% or 20% of their existing pay + DA, depending upon the
affordability of concerned CPSE.
􀂾 A big demand by CPSEs employees regarding raising the limit of gratuity has been
accepted by the Government and the ceiling of gratuity for the executives would now
stand increased to Rs. 10 lakhs. So far the said ceiling was Rs. 3.5 lakhs.
􀂾 Appropriate compensation package in respect of non unionized supervisors would be
decided by the respective Board of Directors of CPSEs.
􀂾 Expenditure on account of pay revision would be borne by the CPSEs, out of their
earnings.
􀂾 Even if there is any specific issue/problem of CPSEs employees, government has also
constituted Anomalies Committee to look into such issues.
􀂾 The effective date of pay revision will be 01.01.2007.
REVISED SCALES OF PAY AT BOARD AND BELOW BOARD LEVELS IN CPSEs
*E7 only in CPSEs of Schedule A, B & C.
* E7 only in CPSEs of Schedule A,B & C.
*E8 only in CPSEs of Schedule A & B.
*E9 only in CPSEs of Schedule A.
REVISED PAY SCALES

GRADE	EXISTING	REVISED
EO	6550-200-11350	12600-32500
E1	8600-250-14600	16400-40500
E2	10750-300-16750	20600-46500
E3	13000-350-18250	24900-50500
E4	14500-350-18700	29100-54500
E5	16000-400-20800	32900-58000
E6	17500-400-22300	36600-62000
E7	18500-450-23900	43200-66000
E8	20500-500-26500	51300-73000
E9	23750-600-28550	62000-80000
Directer(D)	18500-450-23900	43200-66000
CMD(D)	20500-500-25000	51300-73000
Directer(C)	20500-500-25000	51300-73000
CMD(C)	22500-600-27300	65000-75000
Directer(B)	22500-600-27300	65000-75000
CMD(B)	25750-650-30950	75000-90000
Directer(A)	25750-650-30950	75000-100000
CMD(A)	27750-750-31500	80000-125000

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NEW PENSION SCHEME-PFRDA

New Pension Scheme-Features
The NPS is a new contributory pension scheme introduced by the Central Government for its own new employees. Under the new pension system, each new central government employee will open a personal retirement account on joining service. Every month, and till the employee retires or leaves government service, a part of the employee's salary will be transferred into this account. When the person retires, he will be able to use these savings to take care of the needs and expenses of his family during old age.
Pension Fund Regulatory and Development Authority was established by the Government of India on 23rd August 2003 to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto.
When you join Government service, you will be allotted a unique Personal Pension
Account Number (PPAN). This unique account number will remain the same for the rest of your life. You will be able to use this account and this unique PPAN from any location and also if you change your job. The PPAN will provide you with two personal accounts:
1. A mandatory Tier-I pension account, and
2. A voluntary Tier-II savings account.
1. Tier-I account: You will have to contribute 10% of your basic+DA+DP into your Tier-I (pension) account on a mandatory basis every month. You will not be allowed to withdraw your savings from this account till you retire at age 60. Your monthly contributions and your savings in this account, subject to a ceiling to be decided by the government, will be exempt from income tax. These savings will only be taxed when you withdraw them at retirement.
2. Tier-II account: This is simply a voluntary savings facility for you. Your contributions and savings in this account will not enjoy any tax advantages. But you will be free to withdraw your savings from this account whenever you wish.
Main Features and Architecture of the New Pension System
The new pension system would be based on defined contributions. It will use the existing network of bank branches and post offices etc. to collect contributions. There will be seamless transfer of accumulations in case of change of employment and/or location. It will also offer a basket of investment choices and Fund managers. The new pension system will be voluntary.
The system would, however, be mandatory for new recruits to the Central Government service (except the armed forces). The monthly contribution would be 10 percent of the salary and DA to be paid by the employee and matched by the Central Government. However, there will be no contribution from the Government in respect of individuals who are not Government employees. The contributions and returns thereon would be deposited in a non-withdrawable pension account. The existing provisions of defined benefit pension and GPF would not be available to the new recruits in the central Government service.
In addition to the above pension account, each individual can have a voluntary tier-II withdrawable account at his option. Government will make no contribution into this account. These assets would be managed in the same manner as the pension. The accumulations in this account can be withdrawn anytime without assigning any reason.
Individuals can normally exit at or after age 60 years from the pension system. At exit, the individual would be required to invest at least 40 percent of pension wealth to purchase an annuity. In case of Government employees, the annuity should provide for pension for the lifetime of the employee and his dependent parents and his spouse at the time of retirement. The individual would receive a lump-sum of the remaining pension wealth, which she would be free to utilize in any manner. Individuals would have the flexibility to leave the pension system prior to age 60. However, in this case, the mandatory annuitisation would be 80% of the pension wealth.
There will be one or more central record keeping agency (CRA), several pension fund managers (PFMs) to choose from which will offer different categories of schemes.
The participating entities (PFMs, CRA etc.) would give out easily understood information about past performance & regular NAVs, so that the individual would able to make informed choices about which scheme to choose.
Individual will not be eligible to Gratuity
The General Provident Fund (Central Service) Rules, 1960 also do not apply to them. They will not be permitted to contribute towards GPF
more details:http://www.pfrda.org.in/index.asp

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CHILD CARE LEAVE -NEW TURN

CCL –Clarification-fear of staff shortage
The CCL, which is over and above the existing six-month maternity leave, will now be available only after the women employees exhaust their earned leave or EL.
The CCL was announced two months ago on the recommendations of the Sixth Pay Commission to help women employees take better care of their children and family. But the more virtually backfired with several central government departments being flooded with applications from women employees for CCL.
Alarmed, department heads then petitioned the government, arguing that granting such leave for long periods would cause acute staff shortage.
The department of training and personnel (DoPT) has now modified the earlier order saying women employees cannot demand the special leave as a matter of right and can avail themselves of it only after they have exhausted their EL.
“The intention of the pay commission in recommending CCL for women employees was to facilitate them to take care of their children at the time of need. However, this does not mean that CCL should disrupt the functioning of central government offices. The nature of this leave was envisaged to be the same as that of earned leave.
Accordingly, while maintaining the spirit of the pay commission’s recommendations and also harmonising the smooth functioning of the offices, clarifications are issued. CCL can be availed only if the employee concerned has no EL to her credit,” the new DoPT circular says.
Accordingly, CCL will be treated like EL and Saturdays, Sundays, gazetted holidays falling during the period of leave would also be counted in it, as is the case with EL.

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BONANZA TO CPSU OFFICERS

50 to 300 percent increase in pay package
In a bonanza to officers of Central Public Sector Undertakings, the government on Thursday announced a hefty 50 to 300 per cent increase in pay-packages with effect from January 1, 2007.A Cabinet meeting, chaired by Prime Minister Manmohan Singh, approved the new scales for 1,20,000 non-unionized supervisory staff and 2,58,000 board level officers in 216 operational Central PSUs.It approved uniform fitment of 30 per cent of basic pay plus dearness allowance for profit making PSUs with effect from January 1, 2007. For weak and non-profitable PSUs, the fitment will depend on their affordability and will range between 10 per cent and 20 per cent.The package would include revision in other allowances like house rent allowance, besides performance related incentives, Minister of State in Prime Minister's Office Prithviraj Chavan told reporters in New Delhi"The revised pay scales would be implemented by issue of Presidential Directive in respect of each CPSE separately by the administrative ministry concerned," he said.While the new pay structure would be implementable from January 1, 2007, the new allowances would accrue to employees only after the decision is notified by individual units.The Cabinet relied on the Committee of Secretaries recommendations to classify PSUs into four categories - A, B, C and D, instead of five categories - A+, A, B, C and D recommended by the Rao Committee in May.The chairman of 'A' category PSU will now be eligible for Rs 80,000 to 1,25,000 pay scale as against Rs 18,500 to 23,900 currently.
source:NDTV

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PSU PAY REVISION- PRESS RELEASE

Pay Revision of Executives ( Board level Executives, below Board level Executives and Non-Unionized Supervisors) of Central Public Sector Enterprises (CPSEs) w.e.f. 1.1.2007
14:29 IST
The Union Cabinet today gave its approval for accepting the recommendations of 2nd Pay Revision Committee (PRC) as a package with regard to Dearness Allowance, House Rent Allowance, Leased Accommodation, City Compensatory Allowance, other allowances / perks, Variable Pay / Performance Related Pay, Memorandum of Understanding, Performance Management System, Remuneration Committee, Long Term Incentives, Cost to the Company, retirement age, Non Unionized Supervisory staff, pay of executives moving from holding companies to subsidiary companies or vice-versa on deputation / transfer, pay of Government officers on deputation to CPSEs and Superannuation Benefits. The decision has been approved on the recommendations of Committee of Secretaries (CoS). The revised pay scales would be implemented by issue Presidential Directive in respect of each CPSE separately by the concerned Administrative Ministry / Department. The revised pay scales will be effective from 1.1.2007. The payment of HRA, perks and allowances based on the revised scales will, however, be from the date of issue of Presidential Directives. The expenditure on account of pay revision has to be entirely borne by the CPSEs, out of their earnings and therefore, no financial outgo from the Government on account of pay revision is envisaged. An Anomalies Committee consisting of Secretaries of DPE, DOE and DoPT may be constituted to look into further specific issues / problems that may arise in implementation.
MORE DETAIL:
http://pib.nic.in/release/release.asp?relid=44922

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GOVT APPROVED PSU PAY REVISION

PSU PAY REVISION FROM JAN-2007
The government has given its approval to increase pay for officers of central Public Sector Undertakings(PSUs) with effect from January 1, 2007. The decision, taken by the Cabinet at a meeting chaired by Prime Minister Manmohan Singh today, was based on recommendations given by the Second Pay Revision Committee. The package would include revision in dearness allowance and other allowances, besides performance related incentives. Extra outgo on account of the new pay structure would be borne by individual CPSUs and no budgetary support is involved. While the new pay structure would be implementable from January 1, 2007, the new allowances would accrue to employees only after the decision is notified by individual units.
SOURCE:Business Standard

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CASUAL LEAVE - DOP&T ORDER

12 Days Casual leave for Disabled
DOPT issued an order dated 19-11-2008 regarding 12 days casual leave for CG employees with disabilities
(Sixth Central Pay Commission Recommendation - Special
Dispensation in the form of Special Casual Leave to Central
Government Employees with disabilities)
The Sixth Central Pay Commission had recommended that the number of Casual Leave available for employees with disabilities should be 12 days as against 8 days for other employees and it has been decided that the additional benefit of 4 days leave shall be granted in the form of Special Casual Leave. The Central Government employees with disabilities as defined in the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 may be granted Special Casual Leave for 4 (four)days in a calendar year for specific requirements relating to the disability of the official.
more details:-
http://persmin.gov.in/WriteData/CircularNotification/ScanDocument/25011_1_2008-Estt(A).pdf

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RETIREMENT AGE FOR CG EMPLOYEES

No change in RetirementAge
The cabinet secretaryK. M. Chandrasekhar informed that there is no plans to revise the retirement age for Central Government employees. After the sixth pay commission implementation, employees were hoping for the rise in pension age, as doing so can reduce the burden of the additional payment to some extend. However the government decided other stopping all the rumours associated.
Shri. K. M. Chandrasekhar clarified that the government has no intentions in changing the retirement age and the current system will be followed.
“I tried to find out. But there is no file in (Department of) Expenditure, no file in DoPT (Department of Personnel and Training). There is nothing. It is more of a wishful thinking,” he said in an interview.
At present the retirement age for the Central Government employees is 60.
He also added that there is no plans to unify the retirement age of the state government staff across the states.
“The states will decide their own retirement age,” he said. All states have their own retirement age - starting from 55 years (Kerala) to 60 years (Uttar Pradesh, Assam etc). The Madhya Pradesh government teachers retire at the age of 62 years.

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CHILD CARE LEAVE

Child Care Leave-another clarification
DOP&T issued a clarification dt 18-11-2008 regarding availing CCL. It is as follows;-

Subject: Child Care Leave in respect of Central Government employees as
a result of Sixth Central Pay Commission - clarification regarding –

The order regarding introduction of Child Care leave (CCL) in respect of Central Government employees were issued vide this Department's O.M. of even number dated 11th September, 2008. Subsequently, clarification in this regard were also issued vide O.M. dated 29th September, 2008.

2. Consequent upon the implementation of orders relating to Child Care Leave, references has been received from various sections regarding the procedure for grant of this leave etc. In this connection, it is mentioned that the intention of the Pay Commission in recommending Child Care Leave for women employees was to facilitate women employees to take care of their children at the time of need.
However, this does not mean that CCL should disrupt the functioning of Central Government offices. The nature of this leave was envisaged to be the same as that of earned leave. Accordingly, while maintaining the spirit of Pay Commission's recommendations intact and also harmonizing the smooth functioning of the offices, the following clarifications are issued in consultation with the Department of Expenditure (Implementation Cell) with regard to Child Care Leave for Central Government employees:-

i) CCL cannot be demanded as a matter of right. Under no circumstances can any employee proceed on CCL without prior proper approval of the leave by the leave sanctioning authority.

ii) The leave is to be treated like the Earned Leave and sanctioned as such.

iii) Consequently, Saturdays, Sundays, Gazetted holidays etc. falling during the period of leave would also count for CCL, as in the case of Earned Leave.

iv) CCL can be availed only if the employee concerned has no Earned
Leave at her credit.

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HEALTH MINISTRY'S AFFIDAVIT ON 'POOR'

WHO IS POOR?-A Shocking statistics
The sharp erosion in the value of money and the spiraling prices of essential items may have played havoc with people's lives making it difficult for them to maintain their living standards, but the government is stubbornly sticking to its definition of who is `poor'.
In an astounding position before the Supreme Court the government has held that one has to earn only Rs 455 a month in urban areas and Rs 328 in rural areas to escape the poor tag. "At present, on 1999-2000 prices, the poverty line at all India level is Rs 327.56 and Rs 454.11 for rural and urban people per capita per month respectively," said the health and family welfare ministry in a recent affidavit which stood out for the ridiculously low figures.
In the government's scheme, the poverty line drawn on the basis of monthly income varies widely from state to state and from urban areas to rural areas. To classify as poor in the four metros -- Delhi, Mumbai, Kolkata and Chennai -- the person's monthly income has to be less than Rs 506, Rs 540, Rs 410 and 475, respectively. Which means, if your daily earnings cross Rs 17 in Delhi, Rs 18 in Mumbai Rs 14 in Kolkata and Rs 16 in Chennai, you are among those fortunate not to be counted by the government as poor.
The health ministry's affidavit was in response to a petition filed by an NGO `Azadi Bachao Andolan', which had accused the government of being utterly non-serious towards alleviating poverty and its failure to control the rapidly increasing population. Despite using these ridiculously low monthly incomes to classify a person as poor, the government has identified a huge chunk -- over 26 crore -- as poor because they do not even earn these paltry sums.
Orissa and Bihar account for more than one-fifth of the total poor in India. In Orissa, where to be counted as poor one has to earn less than Rs 474 per month in urban areas and Rs 324 in rural areas, a whopping 47.15% of the population is classified as poor. In Bihar, where corresponding monthly income figures are Rs 380 and Rs 333, as much as 42.6% of the population lives below the poverty line. As per the health ministry's affidavit, Jammu and Kashmir is least afflicted by poverty. The northernmost state, where urban and rural poverty lines are demarcated by a monthly income figure of Rs 421 and Rs 368, only 3.48% of its population is classified as poor. After narrating several steps to counter poverty in rural areas, the affidavit stated, "Reduction and alleviation of urban poverty, if not its complete eradication, has long been one of the objectives of planning. There have been encouraging trends in the reduction of urban poverty in both percentage and numeric terms though the urban poor still face age-old problems at the ground level."
Source-Times Of India-14-11-2008

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CHILD CARE LEAVE

Child Care Leave-clarification
DOP&T issued a clarification regarding child care leave. With reference to Para l(c) of this Department's O.M. of even number dated 11th September, 2008 according to which Child Care Leave can be granted to women employees having minor children below the age of 18 years, for a maximum period of 2 Years (i.e. 730 days) during their entire service, for taking care of up to two children whether for rearing or to look after any of their needs like examination, sickness etc. The question as to whether child care leave would be admissible for the third child below the age of 18 years and the procedure for grant of child care leave have been under consideration in this Department, and it has now been decided as follows:-
(i)Child care leave shall be admissible for two eldest surviving children only.
(ii) The leave account for child care leave shall be maintained in the proforma enclosed, and it shall be kept along with the Service Book of the Government servant concerned.

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CHILDREN EDUCATION ALLOWANCE

Children Education Allowance- Clarification
Subsequent to issue of DOP&T OM No. 12011/3/2008-Estt(Allowance) dated 2nd Sept, 2008 allowing Children Education Allowance / Hostel Subsidy, clarifications on certain points have been sought by Govt. servants / Ministries / Departments.The doubts raised by various authorities are clarified as under:
1."Year" means academic year i.e. twelve months of complete academic session.
2.The amount of reimbursement of Children Education Allowance may be calculated on prorata basis @ maximum of Rs. 1000 per month per child w.e.f. 1st September, 2008.
3.In cases where minimum qualifications for admission in the two years Diploma course in Polytechnic is 10th class and the student joins the polytechnic after passing 10th class, the reimbursement of tuition fees shall also be allowed for the 1st and 2nd year classes of the above course.
4.Restriction of classes Nursery to class Twelfth as applicable for Children Education Allowance is also applicable for drawing hostel subsidy.
5.The Children Education Allowance is admissible, if the number of children exceeds two as a result of second child birth resulting in twins or multiple births.6.The Children Education Allowance shall be admissible to a Govt. servant while he/she is on duty or is under suspension or is on leave (including extra ordinary leave)
More informations click the link:http://persmin.gov.in/WriteData/CircularNotification/ScanDocument/12011_03_

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PENSIONERS FEEL UNHAPPY

Qualifying Years for full pension
Its unfortunate for those who retired after1-1-2006 but before 1-9-2008; eventhough they completed 20 years of service , they cannot claim full pension.
The OM dt.3rd Oct.2008 cites two clauses Viz.5.1.33 &6.5.3 and 5.2 & 5.3 of OM dt.2nd Sep.2008 are related to the persons retired after 1-1-2006 who do not have the required number of years and can not claim full pension on the basis of sixth pay commission recommending 20 years of qualifying service and is applicable for only to staff retiring on or after 2nd sep 2008. Hence the main issue in these clauses is the qualifying service and not the last pay drawn or average emoluments. Hence for the post 2006 retirees with 33 and above years of qualifying service pension should be fixed based either on the last emoluments or 10 months average pay whichever is more. This point is clearly brought out in the clause 6.5.3 that all other recommendations relating to pension will take effect retrospectively from 1-1-2006.We feel that there can be only one cut of date for the implementation of CPC recommendations i.e. from 1-1-2006 and cut of date not be issue based.

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INCOMETAX EXEMPTION FOR GRATIUTY

Income exemption limit for gratuity
Government has proposed to raise income exemption limit for gratuity funds to Rs 10 lakh from the present Rs 3.5 lakh for both government and private sector employees consequent on implementation of sixth pay commision report which fixed the maxium limit of gratuity that payable to Central Government employees at Rs.10 lakhs against the earlier limit of Rs. 3.5 lakhs.
The industry and trade unions have supported the government proposal to raise the tax exemption limit for gratuity funds to Rs 10 lakh from the present Rs 3.5 lakh for both government and private sector employees.
The Federation for Indian Chambers of commerce and Industry (Ficci), for instance, wants it to be implemented as early as possible.
“The increase in exemption limit translates into increase in entitlement of the employee in most cases,” a Ficci spokesperson said. Many employees who were eligible for more than Rs 3.5 lakh were not getting it so far. This will change with the change in the ceiling, Ficci said.
In a communication to trade unions and employers in October, the Union labour ministry had asked for views on whether the ceiling should be raised to Rs 10 lakh. Three weeks time was given to the stakeholders for submitting their responses.
An Assocham official said the organisation had written to its members that it was in favour of the increase. The companies had responded positively to it, the trade body said.
Labour Secretary Sudha Pillai said that the ministry was yet to take a view on the matter. “We will take a stand depending on the response of the employees and employers groups,” she said.
The ministry’s move follows the Sixth Pay Commission recommendation to extend the limit for government employees. Officials said the ministry seeks to bring parity between the government and private sector employees.
Trade unions have already sent their assent to the proposal. Hind Mazdoor Sabha national secretary R A Mittal said: “We got the letter from the ministry in October and we replied promptly that we are in favour of it.”
“Why would trade unions oppose it,” he asked.
CITU national secretary W R Varadarajan said that the union had always been demanding raising of the exemption ceiling. “We have supported the move,” he said.
The Payment of Gratuity Act, 1972, applies to factories and other establishments employing 10 or more persons. On completion of five years service, the employees are entitled to payment of gratuity at the rate of 15-day wages for every completed year of service or part of it in excess of six months subject to a maximum of Rs 3.5 lakh, the law says. However, the gratuity is considered an income and the employee who receives it is liable to pay taxes on it. However, gratuity up to Rs 3.5 lakh is exempt from tax under the provisions of Section 10(10) of the Income Tax Act, 1961.
Employers also enjoy tax exemption under the Income Tax Act on any sum paid by way of contribution towards an approved gratuity fund. Till now the payment could not exceed Rs 3.5 lakh.
Ficci said this move would not benefit the employers by way of a source of parking more funds in a tax exempt source. “It has to be paid to the employee. Even if the employee leaves without completing five years, the use of the money has to be accounted for,” said an official.
“Though under the Gratuity Act, gratuity funds were supposed to be set up by companies, not all have done it and gratuity is paid out of the general account. Therefore, there is no tax exemption unless the sum is shown as having been paid as gratuity,” he said.
Source : Business Standard

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6CPC-ARMED FORCES PAY ANOMOLIES

New pay anomolies -Armed Forces
As the Minister Mr.Pranab Mukherjee-led ministerial committee is grappling with armed forces’ pay-related grievances, the three Services have now taken a fresh controversy to A K Antony’s doors over “issues created” by Defence Ministry bureaucrats.
The Defence Ministry’s special instructions on the 6th Central Pay Commission notification, the Services say, have “back-stabbed” the armed forces personnel by introducing seven fresh “anomalies” last week.
The “anomalies” include re-defining of the military service pay and rank pay, which actually subverted the purpose for which the pay commission had recommended it in the first place, sources in the Services’ headquarters said here today.
“The Services headquarters approached Defence Minister Antony against the mischief and back-stabbing in the special instructions issued by the ministry officials and have sought removal of these provisions. The new anomalies are different from the four core issues that we raised earlier,” sources said.
“The changes in the definition and meaning of key pay commission recommendations have been done on the sly to deal a blow to the armed forces’ morale and to deny them their due,” they alleged.
The special instructions, issued by the Defence Ministry on the pay commission notification, was received by the armed forces on October 20.
Source : Economic Times (02-11-08)

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PAY REVISION FOR PSU EMPLOYEES

Thanks to 6cpc-PSU Employees
The government has finally decided to revise the payscales of employees working in 69 public sector undertakings (PSUs) on the lines of the Sixth Pay Commission offered to central government staff.
The benefit of pay revision will be allowed only to employees of those CPSUs that are not making losses and are in a position to absorb the additional expenditure from their own resources without any budgetary support.
The PSUs include Mahanagar Telecom Nigam (MTNL), Indian Tourism Development Corporation (ITDC), NHPC and North-Eastern Electric Power Corporation (Neepco) among others. These PSUs follow the central dearness allowance pattern and are governed by a separate high power pay committee.
“The pay scales of the employees will be revised with effect from January 2006. It will be now up to the board of directors of the respective PSU company to consider the pay revision, keeping in mind the affordability and capacity of the CPSU. They’ll have to submit a proposal to their respective administrative ministry, which will approve the proposal with the concurrence of its financial advisor,” a department of public enterprise official said.
As per the recommendations, there will also be a revision in city compensatory allowance, house rent allowance and dearness allowance (DA).
Already in April this year, the government had increased the DA for PSUs by 6% with effect from January this year.
“This will make a stronger case for the early implementation of the second pay revision committee report for the companies following the industrial dearness allowance pattern. However, not all companies following the CDA pattern will be able to adopt the new pay revisions as some of them are sick or loss-making units,” the official said.
source : Economic Times

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MOTORCAR,SCOOTER ADVANCE

INTEREST BEARING ADVANCES
The implementation of the recommendations of the sixth central pay commission relating to interest bearing advances granted to central government employees.To purchase of motor car, motorcycle, scooter, moped and personal computer would continue to be in operation. The eligibility criteria will be as follows ;
Eligibility Criteria
Motor Car (including Personal Computer)-Pay in the payband:19530 and above
Motorcycle, Scooter, Moped -Pay in the payband:8560 and above
The quantum of advances would be detemined with reference to pay in the pay band and existing ceilings would remain unchanged.
Rate of Interest for Purchase of Conveyances
Rate of Interest per annum
Advance for purchase of Bicycle: 5.5%
Advance for purchases of Motorcycle, Scooter, Moped: 8%
Advance for purchases of Motor Car: 11.5%

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ACP ORDERS

GOODNEWS
ACP orders are almost ready and will be issued by 15th November.
BAD NEWS
It is worst than old ACP scheme. Orders are prepared on the line of Resolution dated 29.08.08. On ACP every one will get next higher grade pay in the hierarchy of Grade pay instead of hierarchy of posts

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