No Good News For Babus

The empowered committee examining the 6th pay commission's proposals is unlikely to "rewrite" the original report in any big way. The committee was formed on an assurance from PM Manmohan Singh who said that the concerns of government employees would be accounted for before implementing the salary proposals.

The committee, headed by cabinet secretary K M Chandrasekhar, has progressed well in its work and is expected to submit its much awaited report by July first week of 2008. The pay panel's recommendations, effective from January 2006, are likely to be accepted and implemented "very soon" after that.

The committee will definitely not go into the nitty-gritty of the entire report but may recommend very minor changes here and there

Inflation has been on a continuous uptrend. The fact is that prices of not just petrol, diesel and LPG, but of essential commodities, foodgrain and vegetables have been rising. The pay hike recommend is nothing in comparison to inflation. So Babus should prepare themselves to live with less money!

Sources said the government is being extra cautious in taking a final decision on the pay report proposals and this is believed to be the cause for the delay.

Modification in pay scale only for Defence Personnel and Police

Under pressure on account of mounting expenditure, the government is likely to make only marginal changes in the recommendations made by the Sixth Pay Commission. Changes are likely only in the case of defence personnel and police forces, it is understood.

The committee of secretaries headed by Cabinet secretary K M Chandrashekhar looking into the commission’s recommendations is expected to submit its report by the end of July. These would then go to the Cabinet for approval.


Another panel headed by finance secretary D Subbarao is separately looking into the grievances of defence and police forces. This committee will give its inputs to the committee of secretaries that has secretaries of the departments of home, defence, revenue, expenditure, post, security as well as deputy comptroller and auditor general and member secretary of Railway board as its members.

full report

pay revision committee proposal for PSU staff

Over 210,000 executives in estimated 240 central public sector undertakings are in for a bonanza with a pay revision committee recommending a massive hike in their annual cost-to-company. The hike ranges between 379 per cent at the highest level and 57 per cent at the lowest across companies and levels

The proposed pay structure seeks to reduce the disparity between public sector executives and their private sector counterparts and introduce a performance-based compensation culture.

n another far-reaching recommendation, the award calls for complete delinking of public sector and government pay scales. PSU employees are proposed to get much more than government officials.

For instance, the chairman and managing director of a company like ONGC, NTPC or Bharat Sanchar Nigam Ltd is proposed to be paid Rs 52.20 lakh a year, Pay panel's other recommendations Employee stock options, linked to performance pay Performance-related payout amounting to 40-200 per cent of basic pay Risk pay of Rs 1,100 to Rs 25,000 per month New pay scale of Rs 65,000 - 75,000 of E-10 in A+ companies Sick companies to be allowed pay revision (without risk pay or variable pay) if they make cash profit Central PSUs not making cash profits to be examined by the Board for Reconstruction of Public Sector Enterprises CMDs and directors of sick central PSUs which have seen a turnaround will retire at 60 No upper limit on gratuity Separate fund for post-retirement medical treatment and to meet emergency needs of those who have retired Revision of pay for non-unionised supervisors to be decided by board of directors Retirement benefit of 30 per cent of basic pay, which includes CPF, pension, gratuity and post-retirement medical benefits Full report

Goa Employees protest 6th PC

VASCO : A joint massive rally was held by the three unions in Vasco to protest against the recommendations of sixth central pay commission.

About 500 employees of the three unions namely- MES Employees Union, Goa Naval Employees Union and Goa Defence Civilian Employees Union affiliated to All India Defence Employees Federation, Pune took part in the rally.

The protest rally comprising of about 500 employees was taken from the CWE (N) office, Mangor Hill and culminated opposite MMC building with a public meeting.

All the three unions have jointly submitted a memorandum with regard to the sixth central pay commission to the Union Defence Minister, Mr A K Antony.(Full report)