Saturday, February 9, 2008

Pay panel estimates 150% Civil Service salary hike

Government salaries may literally give India Inc a run for its money, if one of the latest estimates of salary revisions by the Sixth Pay Commission is to be believed. Basic salaries are likely to rise by over 150 percent. However, the actual payout may be more moderated, as inclusive of all allowances, existing salaries are not for below the new slabs.
Section officers will get a starting basic salary of Rs. 20,000, while their department heads, joint secretaries, would get a fixed basic salary of Rs.60, 000 a month. Basic Pay for sections officers currently begins at Rs. 8,000 per month. Secretaries to the government would earn a fixed salary of Rs. 75,000 a month. A cabinet secretary’s monthly salary would also be fixed at Rs.80, 000 per month. At each grade, the 5.5. Million central government employees would earn an inflation neutralizing dearness allowance (DA) of 6 percent of basic. The minimum scale for non-executives is likely to be hiked to Rs. 6, 500 a month, from the present Rs.2, 550 a month.
The buzz around the Sixth Pay Commission has grown louder, with the panel headed by Justice BN.Srikrishna expected to submit its report next week. The good news, however, may just stop here. Contrary to expectations, government officials will continue to retire at 60 years The plan to increase the retirement age has been shelved, according to the Pay Commission estimates. The Commission, though, is expected to recommend that officials will now retire on December 31 of the year they reach age 60.
Other allowances – including DA house rent and travel benefits, linked to basic pay- would also increase. DA would be hiked by 6 percent retrospectively from January, 1, 2007, and 14 percent from this year, according to this estimate. House rent is proposed to be hiked by 30 percent of basic for metros, but with a cap of Rs.12, 000. While the recommendations are effective from January 1, 2006, arrears would he given only from January 1, 2007.

(Source: The Indian Express dt. 9.2.08)