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Tuesday, August 26, 2008

What the CoS did about sixth pay commission report

A review on the major changes / addition on CPC report by the CoS


Modification Comments
1 Enhanced the revised pay bands recommended by the pay commission to be based on multiplication factor of 1.74 to 1.86 The fitment had to be (Basic + DP)*24%.
The CPC members could not make out this simple calculation?
2 The Armed Forces Personnel below Officers Rank will get a Military Service Pay (MSP) of Rs 2,000 per month, Rs 1,000 more than that recommended by the Commission. The Officers of the Defence Forces would get an MSP Rs 6000 over and above their salary. The forces had dedicated and sincere minister to bargain for them.
3 Increase in the rate of annual increment for 2.5% to 3%. Removed the performance based increment. After all performance has got a different meaning at government.
4

The middle level officers of the Defence Forces, namely Colonels and Brigadiers, have been placed in the highest pay band of PB-4.
Middle level police and civilian officers — DIGs, Conservator of Forests, Scientists E and F, Superintending Engineers, Directors, Additional Commissioners of Income Tax and Central Excise and posts in equivalent grades — have also been placed in the highest pay brand.

The higher level officers benefit from the increased grade pay.
5

Increase in Transport Allowance at the lowest level to Rs 600 (from Rs 400 in A-1/A class cities recommended by the Sixth CPC) and Rs 400 (from Rs 300 in other cities recommended by the sixth CPC).

Removal of Campus restriction for grant of Transport Allowance.
Minor benefit for the lowest level
6 At least three promotions have been assured for all Defence Forces personnel and civilian employees under the modified Assured Career Progression (ACP) Scheme. While the civilians would get it after 10, 20 and 30 years of service, the Defence Forces Jawans would get ACP in 8, 16 and 24 years. Only 3 promotions i

1 comment:

Ashwini Kumar said...

Hi All,

It seems people have misconception about the fitment benefit... blogger himself seems confused about the same.

In article 1.2.3 CPC describes the Fitment Benefit as under -
Fitment benefit 1.2.3 The efforts of the Commission have been to devise a
suitable pay package which will not only provide enough
incentive to retain the brightest officers but also attract the best
to join it in future. The quantum of fitment has been decided,
accordingly. At the time of Fifth Central Pay Commission,
fitment of 20% of the pre-revised basic pay was recommended.
This was subsequently raised by the Government to 40%. The
Commission is recommending a new structure of running pay
bands and grade pay. In the structure, grade pay has been
normally taken at 40% of the maximum of the pre-revised pay
scale. Grade pay is, therefore, in the nature of fitment benefit.
The pay in the running pay band, as on 1/1/2006, has been
computed by adding the basic pay and dearness allowance at
the rate of 74% that would have been payable on the existing
Fifth CPC pay scales w.e.f. 1/1/2006 had merger of dearness
allowance equal to 50% of the basic pay not been allowed from
1/4/2004.

At another place again CPC says -
Rates of grade pay have been generally
computed at the rate of forty percent of the maximum of the
corresponding pre-revised pay scale which is rounded off to the
next multiple of hundred.

As per blogger if we are going to get multiplier of 1.86 then The fitment had to be (Basic + DP)*24%.

Which is incorrect as CPC clearly mentioned that fitment benefit is being computed at the rate of 40% of the maximum of the
corresponding pre-revised pay scale which is rounded off to the
next multiple of hundred. So in no case it can be (Basic + DP)*24%.


It seems blogger has not read the important parts of the report.

Another thing which is not clear is regarding DA, CPC clearly mentions in article 4.1.18 as follows -

4.1.18 The corollary to this merger should necessarily have been
a revision in the existing reference base of price index of 306.33.
The new reference base, therefore, should have been the 12
monthly average index when the index increased by 50 percent.
The reference base index would have, therefore, been higher than
306.33, given the uptrend in price levels, which would translate to
a lower DA rate compared to the extant rates. Logically, therefore,
conversion of dearness allowance as dearness pay should
invariably be accompanied with simultaneous revision of the
base index. This conversion, however, is not necessary in the
revised structure being recommended where increments are
payable as a percentage of the pay in the pay band and grade pay
thereon and provision has been made for all allowances/benefits
to be revised periodically linked to the increase in the price
index. The Commission is, therefore, not recommending merger
of dearness allowance with basic pay at any stage.

Then how the recommended calculators using da rates which are to be computed and declared accordingly?

I think everybody is just guessing the things.

So please please please.... don't play with feelings or emotions of the Govt employees and please dont try to create hypes among all of them.

Before writing any thing on such blogs, Please, first, make sure its correct to the extents of the information. Because whatever you are writing is going to be read by millions of people all over the world.

Thanks.

Ashwini Kumar.

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