Monday, April 20, 2009

Punjab Fifth Pay Commission Full Details, 27 Percent Hike For All Employees

Fifth Punjab Pay Commission report has been submitted to the government. As expected there is a massive revision of Pay Scales, Allowances and Pensions of around 3.5 lakh Punjab Government employees. The pay commission recommendations report was submitted by the Chairman of the Fifth Punjab Pay Commission SK Tuteja to the government.

Salient features of 5th Punjab Pay Commission
Main recommendations of the pay commission report are as below :

1. 27% salary hike to all employees on average.
2. Retirement age pushed to 60 years.
3. Revised pay scales will implemented of the from January 1,2006.
4. Recommendations relating to allowances to be implemented from the date of notification by the Government.
5. Five distinct running pay bands with longer spans being recommended-one running band each for all categories in groups D,C and B and 2 running pay bands for Group ‘A’.

6. Each post has a distinct Grade Pay attached to it. Grade pay is linked to its seniority in the hierarchy.
7. Total number of Pay Scales to remain 32, spread across five distinct running pay bands.
8. Several categories of employees such as Teachers, Nurses, Constabulary to get higher pay scales.
9. A person stagnating at the maximum of any pay band for more than one year continuously to be placed in the immediate next higher pay band without any change in the grade pay
10. Uniform Annual increment to be 3% of pay for all employees.

11. The present system of Dearness Allowance on Central pattern to continue.
12. Existing fixed amount of allowances to be doubled and made inflation proof with a provision of 25% automatic increase whenever dearness allowance payable on revised pay scales goes up by 50%.
13. 5 percentage points increase in House Rent Allowance (HRA) for all areas in Punjab. However, City Compensatory Allowance to be discontinued.
14. Rural Area Allowance to continue at 6%.
15. TA/DA rates revised upwards.

16. Transport Allowance for blind and orthopedically handicapped employees to continue with enhanced limit of Rs. 450/-.
17. Employees allowed to encash 10 days of leave at the time of availing LTC with a maximum of 60 days during the entire career.
18. 60 days leave encashed not to be deducted from accumulated leave of 300 days.
19. Education allowance of Rs. 500/- per child per month upto 2 children recommended.
20. Fixed Medical Allowance raised to Rs. 500/- per month.

21. Mobile allowance varying from Rs. 100 to 500 recommended for all employees.
22. Non-Practicing Allowance of 25% of Basic Pay (NPA) to be given to Ayurvedic, Homeopathic and Veternary Doctors besides PCMS Doctors and Dentists.
23. Officers on deputation as Faculty Members to Training Institutions to get 30% Deputation Allowance. Risk allowance to be replaced by risk insurance cover for employees ranging from Rs. 5 lakhs to Rs. 15 lakhs.
24. One increment recommended for Group ‘C’ and ‘D’ employees for limiting Family size to two children. An additional increment recommended for restricting family size to two children even when both children are girls.
25. Ex-gratia to be increased from Rs. one lakh to Rs. 3 lakhs in case of death in harness and from Rs. 3 lakhs to Rs. 10 lakhs for death in the case of performance of duty such as dealing with riots, terrorist attack or enemy action.

26. A new mechanism for grant of advances to employees through approved banks suggested with an interest subsidy equal to two percentage points (4 percentage points for disabled employees) by the Government. Existing limits of various advances also increased with a provision made for their automatic revision periodically.
27. All pensioners to have a fitment benefit on Central Pattern.
28. Pension to be paid at 50% of the average emoluments/last pay drawn after 20 years of service without linking it to 33 years of qualifying service for grant of full pension.
29. A liberal severance package recommended for employees leaving service between 15 to 20 years of service.
30. Higher rates of pension for retirees and family pensioners on attaining the age of 80, 85, 90, 95 and 100 years while continuing with the existing old age allowance on attaining 65 and 75 years.

31. In case of Government employees dying in riots or terrorist attack or enemy action, family pension to be paid at enhanced rate for 10 years.
32. Devising of an appropriate insurance scheme suggested for meeting the medical needs of existing employees and pensioners.
33. Citizen’s Charter to be compulsory for all the departments.
34. E-governance and use of new information technology recommended for delivery of public services.
35. Toll free help lines to be set up by the departments for effective delivery of Government Services.

36. Use of Lok Adalats for dispute resolution encouraged.
37. Specifically designed Training Programmes recommended for officers to ensure success of Public Private Partnership (PPP) initiatives.
38. In-service training made necessary for promotion to higher grades after completion of 9 and 14 years of service.
39. Multi-skilling of Group ‘D’ employees to encourage.
40. Merger of the Secretariat and Personal Staff cadres suggested in the Civil Secretariat. All future recruitment to be made as Executive Assistants with minimum qualifications of Graduation and one year Diploma in Computers. Executive Assistants to discharge the functions presently being carried out by Assistants as well as the Personal Staff.

Further, the pay commission has said that all the recommendations to be treated as an organic whole as partial implementation will bring in anomalies and inconsistencies.

How much will is cost to implement recommendations of Fifth Pay Commission ?
The implementation will incur an additional burden of Rs 2700 cr annually out of which Rs. 2050 crores will be for serving employees and Rs. 650 crores for pensioners. If you ask about burden arrears, 5th Pay Commission will cost government an additional Rs 3,450 crore for serving employees and Rs 1,350 crore for pensioners.

When will 5th Pay Commission recommendations be implemented ?
The implementation of pay commission recommendations have to wait til elections are over. An implementation committee is being set up to brainstorm on recommendations, which would then have to await cabinet nod.

What is the reaction so far from employee unions ?
The recommendations of the 5th pay commission have not been fully appreciated by some employee union leaders who say that in several scales, central government recommendations are much better.

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