PSU Employees Pay Hikes approved by Cabinate: Sixth Pay Commission Pay Hike

The latest news on the Sixth Pay Commission: It is regarding the Pay Hike for PSU Employees. It is in continuation of our previously reported article on 26th October, where we mentioned that there can be a Pay Hike for PSU Employees and the good news it has been approved by the cabinate. Wikipedia on Sixth Pay Commission Site
It is the time when all the employees in the private sector, especially those burdened with loans, are wishing not to loose their jobs. Their counterparts in the government companies like the PSU or Public Sector Undertaking companies, are laughing all the way. Any why shouldn't they, because today the cabinate has given its approval to hike the salaries of employees of the Government PSU.

How many employees will benefit from this PSU Employees Pay Hike?
Around 2.5 lakh employees are expected to benefit from the PSU Employees Pay Hikes.

Which company employees will benefit from the PSU Employees Pay Hike?
It is learnt that more than 200 company employees will beenfit from the PSU Employees Pay Hike. However, some news sources have quoted the no. of companies to be around 270. Though there are doubts about it.
Image Courtesy: The Hindu.
Which date will PSU Employees Pay Hike be effective?
The new compensation package become effective from January 1, 2007.

What range is the PSU Employees Pay Hike offered?
As per the news the basic pay of chiefs of central PSUs will now range from Rs 55,000 to Rs one lakh.
Performance-related incentives and stock options could also be part of the revised pay package. The government’s decision is aimed at stopping the switching of jobs of talented CPSU employees to the private sector.

What other benefits can be expected by the PSU Employees Pay Hike?
The pay hike package will include revision in dearness allowance performance related-incentives and other perks, said Prithviraj Chavan, Minister of State in Prime Minister's Office. Money for the pay hike would come from individual companies.

There are 247 central public sector undertakings, of which 216 are in operation. The companies employ around 16,14,000 people, of whom 12,36,000 negotiate their wages directly with their respective companies.
However, it is reported that only Profit making PSU employees will be given a PSU Employees Pay Hike. Not sure whether this news is true and whether the loss making PSU employees will have any pay hike.

Orissa Fitment Committee revises Govt Pay Hike: Sixth Pay Commission Pay Hike

The latest news on from the Sixth Pay Commission. It is regarding the Implementation of Sixth Pay Commission Recommendations in Orissa. It is reported that the Orissa Fitment Committee which was having Development Commissioner R N Bohidar as its head, has completed the revision of pay scales or salary scales of the Orissa State Government employees.
Wikipedia on Sixth Pay Commission Site

It is learnt that the report will be submitted within a week by Bohidar who was assigned this task beign a member of the Orissa State Human Rights Commission. The work took 3 months to complete.

What will happen further with the Orissa Pay Hike as per Sixth pay Commission Recommendations?
Its not the end of the road - the report will first be sent to the Chief Minister of Orissa and after that it will be reviewed by the Finance Ministry of Orrissa. Then, there will be a requirement for State cabinate to approve the report and then something can be expected. So still a long way to go.

How did the Fitment committee work for Orissa Pay Hike as per Sixth pay Commission Recommendations?
As per the news, The committee received memoranda from Government employees service associations and discussed pay anomalies between the recommendations of the Fifth Pay Commission and the revised salaries paid to various categories of employees and other complaints relating to cadre restructuring and pay fixation accordingly from October 23 to November 4.

How much financial burden will hit the state in this Orissa Pay Hike as per Sixth pay Commission Recommendations?
Around 1400 Crore Rupees additional burden will hit the Orissa state.
Besides, the State will have to incur an expenditure of another Rs 2,100 crore as arrear dues as the revised pay will be implemented from January 1, 2006.

Related: Orissa Govt makes budget for Pay Hike

Home Secretary TK Mishra, Water Resources Secretary Aurobinda Behera, Agriculture Secretary UP Singh, Finance Special Secretary DP Dash and additional secretary KC Mishra are the other members of the committee

Child Care Leave: Sixth Pay Commission Pay Hike

The latest news on from the Sixth Pay Commission. It is regarding the Child Care Leave:
Below, we presnt the text as it appears on the Office Memorandum Ministry of Personnel, Public Grievances and Pensions Department of Personnel & Training. Though utmost care has been taken to replicate teh text as it is, but E&OE. Wikipedia on Sixth Pay Commission Ministry Site

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.

Encashment of Earned Leaves: Sixth Pay Commission Pay Hike

The latest news on from the Sixth Pay Commission. It is regarding the Encashment of Earned Leaves:
Below, we presnt the text as it appears on the Office Memorandum Ministry of Personnel, Public Grievances and Pensions Department of Personnel & Training. Though utmost care has been taken to replicate teh text as it is, but E&OE. Wikipedia on Sixth Pay Commission Ministry Site

Subject: Rocommendations of the Fifth Central Pay Commission - Decisions relating to Enhancement of the ceiling on accumulation and encashment of Earned Leave in respect of Central Government employees.


The undersigned is directed to say that constituent upon the decisions taken by Government on the recommendations of the Fifth Central Pay Commission relating to leave, the President is pleased to decide that h'1Q existing provisions of the Central Civil Services a.save) Rules, 1972.may be modified as follows in respect of civilian employees of the Central Govemment:-

(a:) The existing ceiling of 240 days on accumulation of earned leave provided in Rules 26 & 28 ibid shrill be ~nhcmcoo to 300 days:

(b) The existingceiling of 240 days for availing of the benefit of encashment of unutilised earned leave shall be increased to 300 days in respect of the following categorles:

(i) Retirement on attaining the age of super annuation [Rule 39(20]

(ii) cases where the service of a Government servant has been extended in the interest of public Service beyond the date of retirement on superannuation [Rule 39(4)];

(iii) Voluntarty/ pre-mature retirement [Rule39(5)]

(iv) where the services of a Government servant are terminated by notice or by payment of pay & allowances in lieu of notice, or otherwise in accordance with the terms and conditions of his appointrnent [Rule 39(6)(a)(i) ];

(v) in the case of tarrnination of re-empioyrnent after retirement [Rule 39(6) (a) (iil) ];

(vi) in the case of death of a Govemmont Servant while in service, to the Family the deceased [Rule 39A]

(vii) in the case of lec.1e preparatory to retirement [sub-rule (l) of Rule 38];

(viii) in the case oi transfer of a Government servant to an industrial establishment [Rule 6]; and

(ix) on absorption of a Government servant in the Central Public Sector Undertaking/autcmomcus body wholly or substantially owned or controlled by the Centrall State Government [Rule 39D];

(c) A Government servant who resigns or quits service shall be entitled to Cash equivalent in respect of earned leave at credit on the date of cessation service, to the extent of half of such leave at his credit, subject to a maximum of 150days mule 39(6)(a)(ii)).

2. The above orders will be effective from 1 July 1997.

3. The Fifth Pay Commission has also recommended that all employees may be permitted to encash 10 days earned leave at the time of availing of Leave TravelConcession, subject to the conditions that:-

(a) the total leave so encashed during the entire career does not exceed days in the aggregate;

(b) earned leave of atleast an equivalent duration is also availed simultaneously by the employee;

(c) a balance of at least 30 days of earned leave is still available to the of the employee after taking into account the period of encashmen t CIS
as leave; and

(d) the period of leave encashed shall be deducted from the quantum of leave that can be normally encashed by him at the time of superannuation,

This recommendation has also been accepted by the Government and, according encashment of earned leave may be cLllowed by the Ministries/Departments subject to prescribed conditions. 'The total encGshment of Earned Leave allowed to a Government servant alongwith LTC while in service and as per the provisions of the Central Service (Leave) Rules, 1972, should not exceed the maximum limit/ceiling of 300 or 150 days, as the case may be, .

5. The orders as per paragraphs 1 to 4 above shall also apply to Government servants serving in Vacation Departments.

6. Formal amendments to the Central Civil Services (Leave) Rules, 1972, are to be issued separately.

7. In so far as persons uerving in the Indkm Audit and Accounts Department concerned,these orders in consulation with the Comptroller and Auditor General of India.

Chairpersons Members of Regulatory Authorities/ Bodies IRDA, SEBI, TRAI, CERC, CCI: Sixth Pay Commission Pay Hike

The latest news on from the Sixth Pay Commission. It is regarding the Clarification on Children Education Allowance:
Below, we presnt the text as it appears on the Office Memorandum Ministry of Personnel, Public Grievances and Pensions Department of Personnel & Training. Wikipedia on Sixth Pay Commission Ministry Site

Subject: Revision of pay of the Chairpersons and Members of the Regulatory Authorities/Bodies consequent to the implementation of the Sixth Central pay Commission Recommendations.

Consequent upon the implementation of the Report of the Sixth Central Pay Commission by the Government, the provisions relating to pay of Chairpersons and Members of Regulatory Authorities/Bodies, laid down in this Department's a.M. No. 3/6/97-Estt. (Pay II) dated 29th January, 1998 read with Corrigendum dated 13th February, 1998, shall be substituted with the following:

1. Pay - The Chairperson would be eligible for pay not exceeding Rs. 80,000/- p.m. (fixed) and Members would be eligible for pay in the Pay Band of Rs. 37400-67000 (PB 4) with a Grade Pay of Rs. 12000/-. The pay will be fixed in accordance with the prevailing orders viz. pay minus pension.

2. The pay and allowances of Chairperson and full-time Members of five specified Regulatory Bodies, viz., Telecom Regulatory Authority of India TRAI, Insurance Regulatory and Development Authority IRDA, Central Electricity Regulatory Commission CERC, Securities and Exchange Board of India SEBI and the Competition Commission of India CCI which have been delinked from Government salaries will be governed by the orders issued by the Department of Expenditure.

3. These orders will come into effect from 1.1.2006

Sixth Pay Commission: Ministry of Defence Controversy with Armed forces Pay hike

The game that begun with the Sixth Pay Commission recommendations is not getting clear any furhter, especially with respect to what the Armed Forces or Defence Forces are trying to ask for. The latest news on Sixth Pay Commission is that there is a fresh controversy erupting between the Ministry of Defence and the Armed Forces. It may further delay the implementations of the Sixth Pay Commission. Leaders of various political parties have already made it a big agenda to highlight the Sixth Pay Commission recommendations. Wikipedia on Sixth Pay Commission News.

As per the news that had come in earlier, a high-level committee comprising of three Cabinet ministers was looking at the four "core issues" that the armed forces have raised after the Sixth Pay Commission report was released. To add salt to injuries, a new controversy has erupted. The Ministry of Defence (MoD) and the Armed forces are learnt to be at loggerheads with each other once again over salary related issues that have cropped up in the past one week.

There were already many anomalies that were reported to be corrected by the armed forces, but even after the high level committee instructions, the forces have now found some more new anomalies in the special instructions that were not there in the Sixth Pay Commission report approved by the Cabinet and notified by the government. Angered at being "short-changed", the chief of personnel officers committee (COPOC) of the three forces has shot a letter to the MoD asking it to remove seven aberrations that include the dilution of the provisions of the pay commission as approved by the Cabinet and in some cases restore the deleted portions. These are separate from the four core issues being examined by the ministerial committee headed by Pranab Mukherjee.

The adjutant general at present heads the COPOC that also comprises the personnel officers of the Air force and the Navy. Out of the many serious anomalies, the key ones are: the dilution of the definition of the military service pay; the subversion of the definition of rank pay and the fixing of the initial pay scale for Colonels and Brigadiers at a level that is lower than what is due.

The foremost issue is of the rank pay that will result in a lesser hike in waoges of all officers. The adjutant general has pointed out that the Fourth Pay Commission onward the rank pay is counted part of the basic pay. This is the government policy to club the two increases, thus affecting the quantum of house rent allowance, travelling allowance and DA. Under new orders, the MoD has delinked the rank pay from the basic pay. Hence, effectively reducing the HRA, travelling allowances and DA for each officer.

In case of the military service pay (MSP), the Sixth Pay Commission explains it as "compensation for difficulties specific to military life". The MoD in its latest orders to implement the pay commission report refers it to as a type of hardship allowance to "security forces" in forward areas. The personnel officers have questioned as to why the definition of the MSP has not been adopted from the pay commission itself.

Furthermore, on the MSP, the pay commission says that "in case of employees drawing the same grade pay, the priority (for status) should be on the total emoluments, including non-practising allowance for doctors and the MSP for forces".

The personnel chiefs have pointed out that the MoD has said the MSP shall not be linked to status and rank.

The initial pay fixation for Colonels and Brigadiers was to be done as per scale "S-25" of the pay commission. Under the new instructions, the Colonels and Brigadiers have been given scale "S-24" that is applicable to a grade that is lower in the civil ranks. This means the initial pay of a Colonel will be reduced by Rs 1,300 while a Brigadier will lose Rs 3,000.

PSU Employees get Pay Hike: Sixth Pay Commission

It's time for the government companies or PSU company employees to cheer for Diwali season. The reason - government has finally agreed to revise the pay scales of employees working in 69 public sector undertakings (PSUs) on the lines of the Sixth Pay Commission offered to central government staff.
However, there is a catch - The pay hike benefit will be given ONLY to the employees of those CPSUs that are NOT making losses, as reported in the news and also, these PSU's should be in a position to absorb the additional expenditure from their OWN resources without any budgetary support from the government.


So, what's the message in a nut-shell - basiscally, this being the election year, the government has done its task by announcing the pay revision for the employees of the PSU's, but the government is not going to bear the cost of the expenditure for the raised pay hikes. The company or the PSU, which is running in profit will have to shell out the money from its own balance sheet to make adjustments for the Pay Hike or Salary hike of PSU company employees.

Where will this PSU Employees get Pay Hike have an effect?
This would mean that the balance sheet of the PSU will be hurt, and hence the stock prices will be hurt.

As per the news, 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 public sector 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.

Sixth Pay Commission: Central Police Forces Against Armed Forces Demands For Lt Col Rank

The circus after the Sixth pay Commission Recommendations and its implementation is not coming to and end, it seems. The Latest News on Sixth Pay Commission is that there are complexions and comparisons between various departments on the government itself, especially the Armed Defence Forces and the Police Force. This may further delay the implementation of the Sixth Pay Commission recommendations.Wikipedia on Sixth Pay Commission News.

As per the news reported on Indian Express, the tug-of-war seems to continue between the central police organisations (CPO) have strongly opposed some of the demands being made by the Armed Forces, including a proposal to elevate the rank of a Lieutenant Colonel above that of a commandant in central paramilitary forces (CPMF). All these oppositions refer to the recommendations of the Sixth Pay Commission report.

It is learnt that the CPO's have submitted an memorandum submitted to the Minister of External Affairs Pranab Mukherjee, who heads the committee to look into the grievances of the Armed Forces on the pay commission recommendations. It has been claimed in the memorandum that the demands & justification of the Armed Forces was entirely unjustified and would result in operational difficulties if accepted.

A delegation comprising officials from BSF, CRPF, ITBP and CISF met Mukherjee on Wednesday and explained why they were opposed to certain proposals, sources said. The delegation told the minister that the Armed Forces were using pressure tactics to get their demands met.

The Armed Forces have openly expressed their dissatisfaction with the pay commission recommendations and one of their demands has been to elevate the rank of a Lt Colonel above that of a commandant in a central police force. Both Lt Colonel and a commandant are placed as the commanding officer of a battalion but during times of joint operations, the Armed Forces commander takes precedence. The Armed Forces have used this to argue that a Lt Colonel should be treated as a higher rank.

We can only expect that these issues should be resolved as soon as possible. Sixth pay Commission Recommendation has brought cheers to millions of employees all over India, but such conflicting issues among the various departments of the government are making it a fruitless effort.

Sixth Pay Commission CPO CPMF: Central Police Organisations Paramilitary Forces Second-in-Command

First it was the three armed forces, who raised there concerns about the implementation of the Sixth Pay Commission recommendations. It then went onto the UGC teaching staff. And now, the matter has propogated to the central police organisations (CPO) and paramilitary forces (CPMF) to raise their voice seeking demand or "parity" in pay scales comparable to their military counterparts. Wikipedia on Sixth Pay Commission.

The protest by the armed forces have promised some fruits as the the government had set up a 3-member ministerial committee led by External Affairs Minister Pranab Mukherjee to consider the armed forces' plea. Hence, looking at the developments, the officers of CPOs and paramilitary forces also have taken their turn to seek a political intervention to resolve issues concerning the pay scales of paramilitary forces & central police organisations.

It is decided that the heads or cheifs of ITBP, BSF, CRPF and SSB will meet Home Secretary Madhukar Gupta to submit a memorandum seeking a political decision on the lines of Mukherjee committee for inclusion of their "second-in-command" rank officers in Pay Band-4, if the tri-services Lieutenant Colonels and equivalents are included in this pay bracket.

The Pay Band-4 for Lt Cols is among the four "core issues" raised by the Army, Navy and Air Force in the 6th Central Pay Commission (CPC) and that led to Services refusing to implement the CPC, a decision taken by the Cabinet in August this year.

"The Director Generals (DGs) of all the CPOs and CPMFs will present a memorandum to the Home Secretary this week. We will urge Home Minister Shivraj Patil to request his cabinet colleague, Pranab Mukherjee, to include 'Second-in-Command' ranks also in Pay Band-4," Home Ministry sources said.
Here are the other related links on the Sixth pay Commission Recommendations and the government orders on the same.
New Pay Band of Defence Force Officers: Sixth Pay Commission

Sixth Pay Commission: Armed Forces Pay panel Grieviences

Link: Revised Pay Scale IAS (Administrative) IFS (Foreign) Officers: Sixth Pay Commission

Link: New Revised Pay Scale Indian Police Services IPS : Sixth Pay Commission

Link To: Maternity Leave, Child Care Leave: Sixth Pay Commission

Link To:LTC Leave Travel Concession Recommendations: Sixth Pay Commission

Link To:Special Allowance for child care for women with Disabilities

Link: Sixth Pay Commission: Income Tax on Pay Arrears