Mar 21, 2008

Upto 35% Wage increase expected in Sixth Pay Commission, CNBC Reports

CNBC Awaaz reported recently that there may be an increase of 30 - 35 % in wages of employees in Sixth Pay Commission. If this happens, it will be a great news for the middle class in India. Main tax payers in the country are salaried employees. So giving benefit to a common man will help the Congress government to get more votes in upcoming elections. I expect the Finance Minister to pass the recommendations of salary revision from Sixth Pay commission panel.

I just wanted to share some basic concepts about the pay commission. There may be certain things which many of us may not be aware of. Sixth Pay Commission is an administrative group of members of the Union Cabinet of India for increasing the salaries of government employees.

Everyone is now waiting for the government to announce the 6TH Pay Commission 2008 proposed pay scales. Looking for more Sixth Pay Commission News and Pay structure for 2008.

5.5 Million government employees will be directly benefit from the Sixth Pay Commission. It may result in wage increase in private sectors as well. Also, it will prompt state governments to extend benefits to their employees. Sixth pay commission pay scales may help employees to fight with the ever increasing inflation.

The first pay commission was constituted in May 1946, which submitted its report within 12-months. The second panel had been set up in August 1957, which submitted its report after two years. The financial impact of the second pay commission was Rs 396 million.

The third pay commission, which was established during April 1970 gave its report in March 1973, and formed plans, which cost the government Rs 1.44 billion.

The fourth commission that constituted in June 1983 submitted its report in three different stages within four years and the financial burden to the government was Rs 12.82 billion.

The Fifth Pay Commission, constituted during Narasimha Rao's regime in 1994, was executed in 1997 at a cost of Rs 17,000 crore.

In July 2006, the Cabinet sanctioned setting up of the sixth pay commission. According to it, the cost of increase in salaries is projected to be around Rs 20,000 crore for a total of 5.5 million government employees.

The report on Sixth Pay Commission, formed by the Union Cabinet, chaired by Prime Minister Manmohan Singh, would be 'beneficial' for the employees as government is desperate to offer complete salary packages to attract quality human resource.

Ajay Maken, Union Minister for Urban Development (State) said, "The Sixth Pay Commission report will be good for the employees. We do not want efficient employees to leave government services to join the private sector."

The Sixth Pay Commission, likely to submit its report by early April, would give recommendations regarding the pay structure of government employees comprising industrial as well as non- industrial central government employees, all-India services, armed forces personnel and employees in the Union

Territories. Additinally, the commission would examine the pay structure for Indian audit and ac-counts department, regulatory bodies set up by Acts in Parliament and Supreme Court employees. Sixth pay commission pay structure will help decide the pay structure for various private sector employees as well.

The expected pay scale table for Sixth Pay commission will also offer pending arrears to employees.

"The Sixth Pay Commission will have a multiplier effect in the economy; those salaries that are benchmarked against central government will also increase. The relativities are disturbed" a senior government functionary said.

For the railways, out of the Rs 5,000 crore allocated, Rs 500 crore is for pension and the remaining Rs 4,500 crore for salaries, wages and other allowances. For a staff strength of 14 lakh, therefore, the additional Rs 4,500 crore expenditure amounts to an average monthly hike of over Rs 2,000 irrespective of the various grades of employees and officers.

6TH Pay Commission Pay Scale Table should be released in first week of April. I will also request TopNews Media to keep us updated with the Sixth central pay commission latest news and expected central 6th Pay Commission Scales.

As the government announced many good things for Farmers and Tax Payers in its Election Budget, i hope the Sixth Pay commission report will also recommend a decent rise in pay scales for central government employees.