6th cpc presentation

8/3/2019 6th CPC Presentation

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SALIENT FEATURES OF SIXTH PAYCOMMISSION RECOMMONDATIONS

By

-V.Natarajan

Secy,WRPOA,BCT



Constitution of 6th CPC• The fifth pay commission had recommended that the sixth pay

commission should be constituted by 2003, so that itsrecommendations are ready by 2006. But, the sixth paycommission was constituted on 5.10.06 and given about 18months to submit the report ie by 31.3.2008

• The sixth pay commission had the with following members

Justice S.N.Srikrishna, chairman

Prof.Ravindra Dholakia, member

J.S.Mathur, Member

Smt.Sushmanath, member secretary

aided by a secretariat of 17 officers

• The members of 6th CPC Visited to 17 countries in around 18months



Salient features• Implementation of pay scales w.e.f 1.1.2006

• Implementation of allowances prospectively ie.from date therecommendations are accepted/modified by the Govt.

• To remove stagnation, introduction of running pay bands for all posts in the government below that of Rs.26000(Fixed)

• Total grades reduced from 35 to 22 running across four running bands (PB-1 to PB-4) with distinctive grade pays.

• All Gr`D’ categories to be upgraded to Gr`C’. Initially existingemployees to be placed in pay scale 1-S for the purpose of initial fixation only. Gr`D’ staff who already possess theminimum qualification of metric to be placed in PB-1 w.e.f 1.1.06 and those who do not possess the required minimumqualifications to be retrained before absorption in PB-1.Further recruitment will be only from PB-1.



New pay structure

New PB New scales Pre-revised

scales

Old

Desig

Remarks

Pay bands Gradepay

1S 4440-7440 1300

2550-3200 S-1 Khalasi, safaiwala,

2610-3540 S-2 Gangman-III, Safaiwala,

2610-4000 S-2A

2650-4000 S-3 BTM, Khalasi Helper, Gang man-II, Safaiwala

PB-1

(5 GP) 4680-20200

1800 2750-4400 S-4 Gang man-I, Key men

1900 3050-4590 S-5 Artisan Gr.III, mate

2000 3200-4900 S-6

2400 4000-6000 S-7 Artisan Gr.II

2800 4500-7000 S-8 Artisan Gr.I, PWM



New pay structure

NewPB

New scales Pre-revisedscales

OldDesig

Remarks

Pay bands GP

PB-2

(4GPs)

8700-34800

4200 5000-8000 S-9 JE Gr.II,

4200 5500-9000 S-10 JE Gr.I,

4200 6500-6900 S-11

4200 6500-10500 S-12 SE, OS

4600 7450-11500 S-13 SSE, COS

4800 7500-12000 S-14 Asst scale officers

5200 8000-13500 S-15 Asst Scale officers (After 3 yrsfor 80% officers)



New pay structure

New PB New scales Pre-revised

scales

Old

Desig

Remarks

Pay bands GP

PB-4

(3 GPs)

39200-67000

9000 14300-22400 S-28

9000 18400-22400 S-29 SAG

11000 22400-24500 S-30 PHOD/AGM

13000 22400-26000 S-31

13000 24050-26000 S-32 GM

Apex scale80000 (Fixed) 26000 (Fixed) S-33 Board members

Cabinetsecy/Equivalent

90000(Fixed) 30000 (Fixed) S-34



Pay fixation

The VIth CPC in table 2.2.2 of the report has

given the tables for fixation which is

explained in the next slide



7700 13400 4200 17600 8650 15060 4200 19260 10100 17580 4200 21780 11500 20010 4600 24610

7850 13660 4200 17860 8825 15360 4200 19560 10300 17930 4200 22130

8000 13920 4200 18120 9000 15660 4200 19860 10500 18270 4200 22470

Prerevised

pay

Revised

pay

Grade

pay

Total Prerevised

pay

Revised

pay

Grade

pay

Total Prerevised

pay

Revised

pay

Grade

pay

Total Prerevised

pay

Revised

pay

Grade

pay

Total

8000 13920 5400 19320 8000 15600 5400 21000 10000 17400 6100 23500 12000 20880 6600 27480

8275 14400 5400 19800 8275 15600 5400 21000 10325 17970 6100 24070 12375 21540 6600 28140

8550 14880 5400 20280 8550 15990 5400 21390 10650 18540 6100 24640 12750 22190 6600 28790

8825 15360 5400 20760 8825 15990 5400 21390 10975 19100 6100 25200 13125 22840 6600 294409100 15840 5400 21240 9100 16390 5400 21790 11300 19670 6100 25770 13500 23490 6600 30090

9375 16320 5400 21720 9375 16390 5400 21790 11625 20230 6100 26330 13875 24150 6600 30750

9650 16800 5400 22200 9650 16800 5400 22200 11950 20800 6100 26900 14250 24800 6600 31400

9925 17270 5400 22670 9925 17270 5400 22670 12275 21360 6100 27460 14625 25450 6600 32050

10200 17750 5400 23150 10200 17750 5400 23150 12600 21930 6100 28030 15000 26100 6600 32700

10475 18230 5400 23630 10475 18230 5400 23630 12925 22490 6100 28590 15375 26760 6600 33360

10750 18710 5400 24110 10750 18710 5400 24110 13250 23060 6100 29160 15750 27410 6600 34010

11025 19190 5400 24590 11025 19190 5400 24590 13575 23630 6100 29730 16125 28060 6600 34660

11300 19670 5400 25070 11300 19670 5400 25070 13900 24190 6100 30290 16500 28710 6600 35310

11575 20150 5400 25550 11575 20150 5400 25550 14225 24790 6100 30890

11850 20620 5400 26020 11850 20620 5400 26020 14550 25320 6100 31420

12125 21100 5400 26500 12125 21100 5400 26500 14875 25890 6100 31990

12400 21580 5400 26980 12400 21580 5400 26980 15200 26450 6100 32550

12675 22060 5400 27460 12675 22060 5400 27460

12950 22540 5400 27940 12950 22540 5400 27940

13225 23020 5400 28420 13225 23020 5400 28420

13500 23490 5400 28890 13500 23490 5400 28890

Prerevised

pay

Revised

pay

Grade

pay

Total Prerevised

pay

Revised

pay

Grade

pay

Total Prerevised

pay

Revised

pay

Grade

pay

Total

18400 43280 9000 52280 22400 48990 11000 59990 24050 52770 13000 65770

18900 44370 9000 53370 22925 50220 11000 61220 24700 55450 13000 68450

19400 44370 9000 53370 23450 51480 11000 62480 25350 46840 13000 59840

19900 45480 9000 54480 23925 52770 11000 63770 26000 58270 13000 71270

20400 45480 9000 54480 24500 54090 11000 65090

20900 46620 9000 55620

21400 46620 9000 55620

21900 47790 9000 56790

22400 48990 9000 57990

Prerevised

pay

Revised

pay

Grade

pay

Manifold

26000 80000 0 80000

PB-2 (8700-34800)

26000 (Fixed) members

PB-4 (39200-67000)

18400-22400 (SAG) 22400-24500 (PHOD/AGM) 24050-26000(GM)

8000-13500 (Gr B' entry grade) 8000-13500 (Gr A' entry grade) 10000-15200 (Sr.Scale) 12000-16500 (JAG)

PB-3 (15600-39100)



Formula for fixation of pay

Generally the following formula has been adopted to work out the revisedpay though this is not universal

Your existing basic x 1.74 rounded off to nearest ten = new basic

Note:-

Multiplication factor of 1.74 is adopted considering 50% DP and 24% DA as on1.1.06. Since we were getting DA on DP, it should have been 1.86 instead of

1.74

The commission has given their explanation for adopting for adopting themultiplying factor of 1.74 instead of 1.86 in 4.1.5 of the report which is as under:-

The government merged 50% of DA with basic pay as D.P w.e.f 1.4.04 anddearness allowance even thereafter was continued to be calculated with

reference to All India Consumer price Index for industrial workers average of 306.33 as on 1.1.1996 without changing the base to average index as on 1.4.04consequent to the merger and as a result salaries of government servants wereneutralized by more than 100%.



Formula for fixation of grade pay

Generally the following formula has been adopted to work out

the revised pay though this is not universal

Grade pay = Max of the scale x 40% rounded off to nearest 100

Where two scales are merged, the maximum of the largest

scale is considered.



Salient features of pay structure• Minimum salary at PB-1 is Rs.4860+1800(GP) = Rs.6660/- (considering 3

units) and maximum for cabinet secretary/equivalent is Rs.90,000/- Pmwhich is 1:13.5 (increased from from 1:11.76 in Vth CPC instead of

reducing this gap in a socialistic society).• Every post barring secretary/equivalent and joint secretary/equivalent has agrade pay attached to it. Grade pay determines the status of the post withsenior post given a higher grade pay.

• Annual increments to be paid at 2.5% of the total pay in the pay band andthe corresponding grade pay. The date of annual increments should be first

of July and employees completing six months and above in the scale areeligible.

• Another form of variable increment to group`A’ officers (PB-2 & PB-3)wherein 20% of high performers will be given increment at higher rate of 3.5%. Govt advised to extend this scheme to PB-1 & PB-2 as well.

• At the time of promotion from one post to the other , the grade pay attachedto the posts in different levels within the same running band to change. Oneincrement to be given at the time of promotion.

• Allowances will be based on grade pay and the allowances will increase by25% when the DA exceeds 50%.

• A person stagnating at the maximum of the scale for more than an year continuously to be placed in the next higher pay band without any change of grade pay.



Dearness allowance• DA was calculated with reference to All India Consumer price index for

industrial workers . The %age increase is calculated from index of Jan’96 ie306.33 (1982=100). Formula adopted is

Before merger of DA -[(12 months average index)-306.33]/306.33 x 100After merger of DA-{[(12 months average index)-306.33]/306.33}-50 x 100

• The present method of calculation of DA based is called Laspeyere’s fixedbase methodology. The inflation index using this methodology captures thecost of buying a basket of goods (fixed in the base year) at current prices

relative to the cost of buying the same basket of goods at base year prices.

• However economic theories postulate that if a price of commodity increasesviz-a-viz other goods the consumer adjusts his consumption basket to buyless of the goods- the prices of which have increased more and more of goods – the prices of which have increased lesser or has fallen. Further

some new goods could also get included in his basket. The shift inconsumption pattern is therefore not envisaged in the above formula. Thechain based technique in calculation of the index for inflation considerschange in quantity of the materials as well as their cost and therefore 6 th CPC has recommended this method. The increase calculated by thismethod will be lesser than the existing method.



Allowances House rent allowance

The rates of HRA are as under:-

Revised cityclassification onpopulation criteria

Revised classification of cities & towns

Rates of HRA as a%age of pay + GP +MSP + NPA

50 lacs & above X (Earlier classified as A1) 30%

5 lacs and below 50lacs

Y (Earlier classified as A,B1& B2)

20%

Below 5 lacs Z (Earlier classified as C’

and unclassed)

10%



Allowances • Transportation allowance

CCA is abolished and merged with transportation allowance whose rates per

month are as under:-

Employees drawing grade pay of Rs.

A1 & A class cities Other cities

5200/- and above including apexgrade & cabinet secretary grade

Rs.3200/- + DAthereon

Rs.1600/- + DA thereon

Rs.4200/- to Rs.4800/- Rs.1600/- + DAthereon


Below Rs.4200/- Rs.400/- + DAthereon


• The restrictions of 1Km distance from place of residence to office are lifted.

• For physically handicapped the rates are double and in no case less than

Rs.1000+DA thereon.

• Officers in PB-4 who are eligible for staff car can draw transportation allowance of

Rs.7000+DA thereon provided they give up their official vehicle for travel between

residence and office.



Allowances • Travel entitlement while on tour/transfer

The travel entitlement while on tour or transfer is as under:-

Employees drawinggrade pay of

Entitlement

Rs.9000 & above `J’ class by air/AC first class in train

Rs.6600-/ to Rs.8400/- `Y’ class by air/AC first class in train

Rs.5400/- to 6500/- `Y’ class by air/AC II tier in train

Rs.4200/- to Rs.4800/- AC II tier in train

Less than Rs.4200/- First class/AC III tier/ AC chair car by train

• No change for travel outside india

• In case of road travel between places connected by rail, travel by any means of

public transport is allowed provided the fare by train for class entitled is notexceeded.

• In case of road travel between places not connected by rail, travel by AC buses for all entitled by 2AC & above in train and deluxe and ordinary buses for those entiledfor first class/AC III tier/AC chair car/sleeper class

All



Allowances• Entitlement of daily allowance

The entitlement of daily allowance is as under:-Grade pay of Hotel expenses

up to RsTaxi charges Food bills

up to Rs.

Rs.9000 & above 5000/- per day AC taxi charges up to 50Km travel within city

500/- per day

Rs.6600-/ to s.8400/- 3000/-per day Non AC taxi charges upto 50 Km travel within city

300/- per day

Rs.5400/- to 6500/- 1500/-per day Rs.150/- per day 200/- per day

Rs.4200/- to Rs.4800/- 500/-per day Rs.100/- per day 150/- per day

Less than Rs.4200/- 300/- per day Rs. 50/- per day 100/- per day

• In case of travel by government ship/boat or journey by foot/mules etc..dailyallowance is to be paid at the rate of allowances of food bills. In this caseamount will be sanctioned irrespective of the actual expenditure with approvalof controlling officer/HOD.

• For journey on foot, an allowance of Rs.5/- per Km will be payable additionally.



All



Allowances The rates of hill area, Bad climate & tribal allowance per month are as under:-Employees drawing grade pay of Rs. Hill allowance Bad climate/tribal allowance

5400/- and above including apex grade

& cabinet secretary grade

Rs.400/- Pm Rs.600/- Pm

Other posts Rs.240/- Pm Rs.480/- Pm

The rates of remote locality allowance per month are as under:-Employees drawing grade pay of Rs. Part-A Part-B Part-C Part-D

5400/- and above including apex grade& cabinet secretary grade

2600/- 2100/- 1500/- 400/-

Other posts 2000/- 1600/- 1200/- 320/-

The rates of project allowance per month as under:-

Employees drawing grade pay of Rs. Project allowance

5400/- and above incl. apex grade & cabinet secretary grade Rs.1500/- Pm

Other posts Rs.1000/- Pm



Allowances Educational allowance

Educational allowance :- Max of Rs.1000/- Pm per child up to two children

Hostel subsidy :- Max of Rs.3000/- pm per child up to two children

Risk allowance

For those engaged in risky occupation, free medical & life insurance will be as

under:-

Insurance

PB-1 Rs.5.00 lacs

PB-2 Rs.7.00 lacs

PB-3 Rs.10.00 lacs

• Amount of insurance to be increased to 50% once DA goes up by 50%

• Additional health checkup every quarter and enhanced leave for recuperations

• Minimise risk by technology



Allowances Non-practicing allowances for doctors

25% of aggregate of basic pay and grade pay subject to the condition that

basic pay & NPA does not exceed Rs.85,000/-

Deputation allowance

Will continue at rates of 5%, 10% & 15% of pay & grade pay without any

pecuniary limits. But the aggregate of pay & allowance not to exceed

Rs.39,200/- being the maximum pay in pay band-4

Other allowances

Cycle allowance up from Rs.30/- Pm to Rs.60/- Pm

Washing allowance up from Rs.30/- Pm to Rs.60/- Pm

All other allowances to be doubled.



Over time & Bonus

OVER TIME

• The fifth pay commission had recommended abolition of OT to all category of

staff except staff car driver, operational staff and industrial employees and allother staff except supervisory staff should be given compensatory rest instead.

This was not accepted by the government & status quo was maintained.

• Now the sixth pay commission has also recommonded abolishion of OT to all

categories of staff except operational & industrial staff who are governed by

statutory provisions.

BONUS

• The Productivity linked bonus should be gradually replaced by Performance

related incentive scheme. Till such time the PLB should be continued in a

modified manner where formula for computing the bonus has a direct nexus with

increased profitability/productivity under well defined financial parameters. Theexisting formula is detailed in para 4.4.11 of the report (page 265 & 266 of the

report). The new formula for calculation of PLB for the railway is given in

annexure 4.4.1 of the report (page 84 of annexure)



ADVANCES

• All Interest free advances to be doubled.

• Advances for typewriters (being outdated) and table fans (available only to

Gr`D’ which is now gradually abolished) which were available interest free to bediscontinued.

• The advances for bicycle and clothing which were not interest free now to be

made interest free.

• The advances which are not interest free to be dispensed hence forth and govt

should enter into agreements with leading PSU banks to extend the facility at

predetermined competitive rates. An interest subsidy of 2% as applicable to

bank of employees and interest subsidy of 4% for physically challenged as

applicable in banks to be given. The employee will take advances directly from

the bank after taking approval of competent authority and repay installments

directly to the bank. The existing limit of these advances to be doubled. The

limit should be increased by another 25% when DA goes up to 50%.• The eligibility for taking advances which are not interest free should be removed

and this will be decided by the bank as per repayment capacity at the time of

processing loan application. This will also extend to the ceiling of 18 lacs

presently prescribed on cost of house for purpose of HBA and this ceiling

should also be removed.



FACILITIES FOR WOMEN EMPLOYEES

• Staggered working hours giving flexibility to work early or late. Under this scheme

11.00 Hrs to 16.00Hrs will be the core working hours during which all women

employees should be present. They will have the option of either coming either

up to 1 ½ Hrs earlier or leaving up to two hours late depending upon the actualtime they have clocked in. The time may be adjusted if office have different

working hours.

• Child care leave up to 2 years ( 730 days) for taking care up to 2 children at the

time of need like examination, sickness etc. Child care leave should also be

allowed for the third year as leave not due. However no child care leave can begiven once the child is more than 18 years old.

• Setting up of day care centres/creaches on contributory basis in offices where

employees have preschool/primary school going children

• Maternity leave to be increased from 135 days to 180 days up to two children.

Further leave up to two year period in continuation can be availed instead of

existing one year period.• Working hostel for women during initial years of service.

• Service conduct rules for protection of women

• 50% of transfer grant on transfer if transfer of either of the spouse takes place

within six months but not lesser than 60 days



FACILITIES FOR HANDICAPPED

• No of casual leaves to be 12 instead of 8.

• Aids and appliances like hearing aids, dictaphones, braille writing equipments

CDplayer, tape recorder, low vision aids and other learing equipments to be

provided free of cost to discharge official duties better.

• Barrier free entries at all places

• Higher subsidy (4%) for loans

• Liberal flexi hours of employment.

• Special allowance for child care of Rs.1000/- per month for women with

disabilities payable from the time of child birth up to two years and for two

children.

• Transport allowance at double the normal rates subject to minimum of Rs.1000/-

per month.

• Modifications in extant provisions to provide for government providing 50% of

the cost exceeding the prescribed limits in case the employees with disabilitiesopts for better quality prosthetic aids/appliances whose value exceeds the

prescribed limit

• A proper grievance redressal machinery to be set up in each office where one

or more employees with physically handicapped are posted



Group insurance & PF

• Rate of monthly subscription and insurance covered shall be as under:-

Group Monthly subscription Insurance cover

A Rs.720/- Rs.7.20 lacs

B Rs.360/- Rs.3.60 lacs

C Rs.180/- Rs.1.80 lacs

D Rs.180/- Rs.1.80 lacs

• Investments in Central Provident fund to be made voluntary.



HEALTH• Health insurance scheme to employers and pensioners on voluntary

basis with contribution of 30%, 25% & 20% by Gr`A’, `B’ & `C’

employees with government paying the remainder. The arrangement tobe reviewed periodically.

• Health insurance scheme to be made compulsory for new employees

who will be joining service after introduction of the scheme. Similarly

new retirees after introduction of the scheme would be covered under this scheme. The new recruits and these retirees will not be provided

with CGHS/CS(MA) facilities, but will be provided an appropriate

amount till insurance scheme for OPD facilities are devised.

• Serving employees & existing pensioners can opt out of CGHS andsubscribe to insurance scheme and make their own arrangements for

OPD needs and will be provided an appropriate amount till insurance

scheme for OPD facilities are devised.



RETIREMENT BENEFITS

• Pension at 50% of 10 months average pay or last pay drawn which ever is higher

without any reference of qualifying service of 33 years for full pension to enable

railway servants to leave service at an young age if they have opportunities outside

and simultaneously government will be able to tap best available expertise for senior

positions from within and outside. Benefit of adding qualifying service of five years will

no longer be applicable.

• Pension & family pension to be increased to pensioners as under:-

On attaining age of Additional quantum of pension

80 years 20% of basic pension85 years 30% of basic pension

90 years 40% of basic pension



• Commutation calculations modified as per annexure 5.1.2 of the report and to be

reviewed periodically based on interest rates and morality rates. This activity of

making payments should be outsourced to any PSU bank which would extend the

commutated amount to pensioners and get appropriate rate of interest on such

amount. Government could extend an interest subsidy on the interest rates so

charged.

• No change in maximum %age of commutation allowed or in period of restoration(15



RETIREMENT BENEFITS

• Maximum pecuniary limit for gratuity to be increased from limit of Rs.3.50 lacs to

Rs.10.00 lacs

•No change in the maximum no of earn leave that can be accumulated ie 300 days.However the no of earn leave encashed while in service to be excluded from the

overall ceiling of encashment of 300 days earn leave at the time of retirement

• Both earned leave & half pay to be considered for encashment of leave subject to

overall ceiling of 300 days. Half pay leave leave will be encashable at the rate equal

to half the amount of leave salary payable during earned leave without any reduction

made on the amount of pension payable. To make up short fall of earned leave, no

commutation of half pay leave will be permissible

• In case of Govt employee dying in harness, family pension may be paid at enhanced

rates for period of 10 years. The dependency criteria will be minimum family pension

along with dearness allowance thereon. This should be followed in cases relating to

payment of family pension as well.

• For 100% disability attendant allowance to be provided on same lines being provided

to defense personals.• Rates of exgratia to be doubled and raised to Rs.10 lacs for death on accidents in

course of performance of duty attributable to acts of violence of terrorists, antisocial

elements etc.. And Rs.15 lacs in case of enemy action in international war or

skirmishes on borders, militant acts, extremists in border posts, extreme climate

conditions at high altitudes, inacessable border posts etc..

RETIREMENT BENEFITS



RETIREMENT BENEFITS• The fixation for pensioners is given in table 5.1.1 of the report and in no case this

shall be lower than the sum of 50% of the minimum of the pay band and the grade

pay thereon corresponding to the pre-revised pay scale in which the pensioner had

retired.

• Medical facilities to be provided to dependent daughters irrespective of their age onpar with the facilities provided for dependent sons.For purpose of the medical

facilities, the definition of family to be expanded to cover minor & dependent children

of the widowed/divorced daughters.

• For family pension & other related benefits widowed daughters to be placed in first

category.

• For encashment of leave for persons dying in harness,the amount shall be paid to therelatives in following order. Widow or eldest surviving widow or husband, eldest

surveying son or adopted son, eldest surviving unmarried daughter, eldest surviving

widowed daughter, father, mother, eldest surviving married daughter, eldest

surviving brother below 18 years of age, eldest surviving unmarried sister, eldest

surviving widowed sister and eldest child of eldest predeceased son.

• Childless widow of deceased govt employee to be paid family pension even after remarriage subject to the condition that family pension will cease once her

independent income from all sources becomes equal or higher than minimum

prescribed family pension in Central Govt.

• All central government employees opting to voluntarily retire after 15 years service,

should be paid one lumpsum retirement benefit equal to 80 months slary last drawn/

average salary during preceding 12 months which ever is higher.

Oth f t



Other features• Improvised entry grades

• Shift from career based selection to post based selection in higher echelons of the government to get bestdomain based expertise. For Gr`B’ & `C’ a fast track promotion mechanism by LDCE.

• No more cadre reviews for up gradations. Creation of additional posts in SAG & above to be strictly onfunctional considerations and these posts created outside the cadre to be filled by method of open selection.

• Up gradation for categories like nurses, teachers, constabulary & postmen looking into their importance inwork.

•Bunching of pay only where higher higher start has been recommended like for Gr`A’ entry grade and band

pay of 4860-20200 where Gr`D’ staff will be accommodated.

•Incase where employees have been placed under higher pay scale between 1.1.06 & date of notification of revised pay bands, employees can be given option to switch over to revised pay band and grade pay fromdate of promotion or up gradation.

•Decadering with 20% in grades SAG & above to be filled from any source by the government. If this is donein any service 20% posts will be allowed in non-functional basis in addition to the existing posts to be filled up

by promotions from lower grades.

•Promotions for HAG on non-functional basis w.e.f 1st Jan when officer becomes due not withstanding anydelay in DPC.

•Design & planning allowances for Eng officers in planning/design wings to be doubled.



THANKS

6th cpc presentation

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