490992 634185848452607500

6th pay commision would bring the

Minimum wages to be Rs 10,000 per

month

45 lakh employees are to benefit from

this hike which has taken effect from

January 2006

DEF SOUGHT FOUR & HALF TIMES INCREASE

21% RISE ON AN AVERAGE GIVEN

ALLCES EXCLUSIVE TO DEF

◦ FD AREAS ALLCES, COMPO ALLCES ETC

ALLCES COMMON WITH CIV

◦ DA, CCA, TPT ALLCE, CEA, CVY ALLCE, NPA

DATE OF EFFECT FROM 01 JAN 2006

ARREARS EXCEPT DA, FROM 01 SEP 2008. PAYMENT

OF ARREARS- 40% IN 2008-09 AND 60% IN 2009-10.

TWO GPS RETAINED i.e. ‘X’ & ‘Y’ GPS.

RUNNING PAY BANDS REINTRODUCED FOR DEF

FORCES

RATE OF INCREMENT 3% OF PAY BAND & GRADE

PAY. NEXT YRLY INCREMENTS FROM 01 JUL.

ALL ALLCES TO AUTOMATICALLY INCREASED BY

25% ON DA GOING UP BY 50%.

MSP INTRODUCED FOR DEF PERS. RANK PAY

ABOLISHED.

NO ARREARS FOR MSP.

ON SWITCHING OVER TO CPMFs, MSP WILL BE

COUNTED FOR FIXATION OF PAY

MSP SHALL COUNT AS PAY FOR ALL PURPOSES

EXCEPT INCREMENTS

FROM INCREASE IN BASIC PAY

01 JAN 2006 Nil

01 JUL 2006 2%

01 JAN 2007 6%

01 JUL 2007 9%

01 JAN 2008 12%

01 JUL 2008 16%

COMMON ALLCES

ONLY TWO TRADE GPs i.e. X & Y.

Y & Z GPs BEING MERGED

PAY BANDS AND GRADE PAY FOR SAME RANKS IN BOTH GPs.

SEPARATE ‘X’ GP PAY OF Rs.1400

PBORs GIVEN STIPEND DURING TRG PD.

ON COMPLETION OF TRG, FULL SALARY

LESS STIPEND PAID.

NO CHANGE IN STIPEND.

Rank X Scale Y Scale Difference

Sep 3675-4725 3325-4375 350

Nk 4150-5200 3900-5175 250

Hav 5000-6500 4320-5820 680

Nb/Sub 6000-8520 5620-8140 380

Subedar 6750-9790 6600-9320 150

Sub Maj 7400-10200 6750-9550 650

DIFFERENCE BETWEEN PAY SCALES ‘X’ & ‘Y’ GPS VARY BETWEEN Rs.150 TO Rs.680. AVG DIFF Rs 410. DA & DP ALSO PAYABLE.

HENCE DIFFERENCE OF Rs 1400/- KEPT BETWEEN X & Y GPs

Rk Pay Band Grade Pay

MSP X Gp Pay

Sep 4860-20200 2000 2000 1400

Nk 4860-20200 2400 2000 1400

Hav 4860-20200 2800 2000 1400

Nb/Sub 8700-34800 4200 2000 1400

Sub 8700-34800 4600 2000 1400

Sub Maj 8700-34800 4800 2000 1400

Grade Pay Rate in Metro cities

Other cities

Rs 5400 & above Rs 3200 + DA

Rs 1600 + DA

(i) Rs 4200,4600,4800

(ii) Gde Pay Below 4200 but pay band = or above Rs 7440 (JCOs)

Rs 1600 + DA

Rs 800 + DA

Below 4200 & pay in pay band below 7440 (OR)

Rs 600 + DA

Rs 400 + DA

Pay Range Travel Entitlements

Grade pay Rs.9000 and above

J Class by air/ AC First Class by Train

Rs.6600 to Rs.8400 Y Class by air/ AC First Class by Train

Rs.5400 to Rs.6500 Y Class by air/ AC II Tier Class by Train

Rs.4200 to Rs.4800 (JCOs) AC II Tier Class by Train

Less than Rs.4200 (OR) First Class/ AC III Tier/AC Chair Car by Train

Grade Pay Hotel Taxi Food

Rs.9000 above

Rs.5000 50 Kms (AC) Rs.500

Rs.6600-8400

Rs.3000 50 Kms

(Non-AC)

Rs.300

Rs.5400-6500

Rs.1500 Rs.150 per diem

Rs.200

Rs.4200-4800 (JCOs)

Rs.500 Rs.100 Per diem

Rs.150

Below 4200

(OR)

Rs.300 Rs.50 per diem

Rs.100

X CITIES - 30%

Y CITIES - 20% (INCL VIZAG)

Z CITIES - 10%

For HRA, BP+ Gde Pay+ MSP shall be taken into

acct.

CEA & TUTION FEE COMBINED .

Rs 1,000 PM FROM EXISTING Rs 50 PM PER

CHILD TO MAX OF TWO CHILDREN

HOSTEL SUBSIDY RAISED FROM Rs 300 TO Rs

3,000 PM PER CHILD

INCOME TAX EXEMPTION ON ALLCES

PECULIAR TO SERVICES

INCREASE IN RETIREMENT AGE

POLICY ON LATERAL SHIFT TO CPMFs

COMMON RATION FOR 3 SERVICES

PRI SCHEME & ALLCES

The positive effect it would have are : More money in the hands of the people would result in more spending in malls and retail outlets, thereby giving a push to slagging demand in consumer durables and two wheelers.

Quality of employees in the public sector and administration would hopefully improve, because of higher pay packets.

Public sector units would be able to better incentivisetheir employees and could hope to retain outperformers

The armed forces, which are facing a shortage of middle level personnel would be better placed to hire capable junior officers and other staff.

The negative effects it would have on the economy are

: An already stretched Fiscal Deficit could worsen

further, giving rise to downgrades by international

rating agencies.

However the Government could try to manage the

situation by means like increased revenue from

spectrum sale to telecom companies and by divestment

of shares in PSU's to the public.

Both these measures are on the anvil and could help the

Government in bridging the gap between revenue and

expenditure.