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Commission Implementation
In an Independence
Day-eve bonanza, the central government on Thursday gave
its
50 lakh employees, including defence personnel, a
significantly bigger pay packet improving on the
recommendations of the Sixth Pay Commission with
retrospective effect from January, 2006.
The Union Cabinet, which met on Thursday, approved the new
pay scales that would give the employees an average increase
of 21 per cent, a decision that would cost the exchequer Rs
22,131 crore -- Rs 15,717 crore on the General Budget and Rs
6,414 crore on the Railway Budget -- in 2008-09.
 "The overall average increase is 21 per cent," Expenditure
Secretary Sushma Nath said. The fitment rate will be 40 per
cent as against 28 per cent recommended by the Sixth Pay
Commission.
In a significant modification of the Pay Commission
recommendation, the government has raised the fitment rate,
which helps in arriving at higher allowances in view of
merger of 50 per cent DA with basic pay, in revised pay
bands to 40 per cent as against 28 per cent.
The minimum basic pay for a government servant at the lowest
level has been increased to Rs 7,000 against Rs 6,660 per
month awarded by the Commission. Consequently, the total
emoluments of this class of employees would exceed Rs 10,000
including allowances.
Officials say that the increase in the higher brackets of
pay will not be much compared with the Commission's
recommendation. However, in the category of defence
personnel, the recommendations of the Commission, which had
led to large-scale discontent, the modifications on the
basis of an empowered committee's suggestions have been
significant.
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