Efforts to resolve the “anomalies” in the new pay scales for armed forces gained momentum with External Affairs Minister Mr.Pranab Mukherjee on Tuesday discussing the matter with Finance Minister Mr.P. Chidambaram.

Mukherjee, who is heading a three-member ministerial committee looking into the issue, held discussions with Chidambaram after holding consultations with Prime Minister Mr.Manmohan Singh.

Mr.Mukherjee and Mr.Chidambaram were together for about an hour during which they are understood to have explored ways to address the issue to the satisfaction of the forces.

The Defence Services, led by their Chiefs, are up in arms over the 6th Pay Commission recommendations, alleging that it compromised their status and honour.

Emerging from the meeting at the External Affairs Minister’s South Block office, Mr.Chidambaram refused to comment on the deliberations, saying it was his first meeting with Mr.Mukherjee on the issue.

Mr.Mukherjee yesterday said he had discussed the matter with the Prime Minister and that he hoped the issue would be settled shortly.

The committee, which also includes Mr.Antony and Mr.Chidambaram, was set up by the Prime Minister on September 25 in the wake of deep resentment in the armed forces, who complained that there were “anomalies” in the Sixth Pay Commission recommendations and that it had lowered the status of their officers.

Source: The Hindu (14-10-08)

The model code of conduct for elections may affect education minister Mr.Arjun Singh’s plans to announce a raise for university and college teachers by Diwali.

Top officials in the ministry went into a huddle today to discuss the likely delay amid fears that it could hurt the UPA in the elections.

Sources said, on October 8, Mr.Singh had asked his department to finalise the pay hikes proposed for over five lakh college and university teachers in time for Diwali.

But any announcement of a raise now may be described as a measure against the model code of conduct which is in force, officials said.

The model code came into effect when elections to five states — Delhi, Mizoram, Rajasthan, Madhya Pradesh and Chhattisgarh — were announced. It will remain in force till December 4, the last day of polling.

Mr.Singh was hauled up by the Election Commission in 2006 for promising OBC quotas in central higher education institutions just ahead of state polls that year. He is unlikely to risk a repeat, sources said.

A University Grants Commission pay panel headed by G.K. Chadha had earlier this month recommended pay hikes ranging from 75 per cent to over 100 per cent for teachers. The recommendations have been accepted by the UGC and the ministry is finalising them, the sources said.

“But now, even if we finalise the salary hikes, we will in all probability be unable to implement the raise till December 4,” a senior official said.

These concerns were debated at a late afternoon meeting of ministry officials under higher education secretary Mr.R.P. Agrawal, the sources said.

The promised raise will be valid not just for central university teachers but also for state-run colleges or universities recognised by the UGC.

Source : The Telegraph (15-10-2008)

There have been some news items on television as well as in the newspapers that most of the pay arrears will go towards payment of income tax once the employees receive the arrears. However, the government recently, has clarified its stand on the taxation of the pay arrears for the current financial year.Income tax on Pay arrears Sixth Commission
Government representative said that they would tax only 40 per cent of salary arrears to be paid to central government employees in the current fiscal on implementation of Sixth Pay Commission recommendations.The Khabrein info. writes-

Usually, the income earned in a year is taxed in that particular year, hence whatever the employees receive in this financial year woul be taxed this year. A lot of media sources reported that the entire amount of arrears would attract tax this fiscal.

As per the notification issued by the government last month, central government employees will get 40 per cent of arrears during the current financial year and the remaining amount in the next financial year.

Government instructions issued on August 30, 2008, regarding fixation of pay and payment arrears consequent to implementation of the Sixth Central Pay Commission recommendations clearly states that in authorising the arrears income tax as due may also be deducted and credited to the government

Orders issued by Governement for revision of pay scale and allowances, Pension Benefits, LTC, and other financial benefits granted to Central Government Officers consequent upon implementation of Sixth Pay Commission report can be downloaded from here

New Pay and Bonus

Revised Pay Rules - Notification (html format) Revised Pay Rules - Notification (PDF format)



New Pay and Arrears - Resolution (html format) New Pay and Arrears - Resolution (pdf format)


New Pay- Office Memorandum

Railways Revised Pay Rule - Notification

Clarification

CSIR 6CPC Report

Revised PLB and Adhoc-bonus

Allowances

Revised DA,HRA,TA

Deputation Allowance

Travelling Allowance

Family Planning Allowance

Leave

Maternity Leave

LTC

Revised LTC

As the committee headed by External Affairs Minister Pranab Mukherjee is looking into the armed forces’ grievances over their new pay scales, the army on Wednesday said any decision by the government on the issue will be for the good of the country and the Services.

“The pay anomalies issues is currently with the Cabinet and I am sure it will take care of it. Whatever it decides, it will be for the good of the country and the armed forces,” Vice-Chief of the Army, Lieutenant-General M L Naidu, said on the sidelines of an Army Postal Service Awards ceremony ihn New Delhi.

“They (the committee members) are our national leaders and they will keep all issues in mind before taking a decision. It (pay issues) is not a matter of our expectations,” Naidu said, replying to a query on the course of action the armed forces would take if all their expectations are not met by the Mukherjee committee.

Prime Minister Manmohan Singh had late last month set up the Mukherjee committee with Defence Minister A K Antony and Finance Minister P Chidambaram as members to consider the four “core issues” raised by the armed forces on what they called a “discriminatory” 6th Central Pay Commission (CPC) report.

In fact, the issues had snowballed into a controversy over the armed forces’ reluctance to implement the Cabinet decision on the CPC taken last month.

Consequently, the 1.5 million armed forces personnel took home their old pay scales in October, while their 3.5 million civilian counterparts got their revised pay scales under the CPC.

To another query, Naidu said pointing out some discrepancies in the CPC was not “defiance”, but professional duty (of the armed forces).

The armed forces are demanding that the government place Lieutenant-Colonels and their equivalents in Pay Band-4, ensure parity in Grade Pay of officers from Captains to Brigadiers with their civilian counterparts, accord the Higher Administrative Grade Plus status in pay scales to Lieutenant Generals and restore 70 per cent pensionary benefits to jawans.

To another question over the misuse of army’s combat fatigues by paramilitary and police forces, Naidu said the army had already informed the Centre and the state governments about it.

“Now, the state governments have taken very strict action, because they have realized that by not insisting on this, it is causing some confusing. Now they have done it (enforce laws against misuse of army uniforms). And hopefully it will be sorted out,” Naidu said.

Asked about the uniforms and camouflages being freely available in the open market, the army vice-chief said as far as clothes, low-quality products are concerned, they were available (but not the Army’s).

“A solution is being worked out and the Home Ministry is doing what is necessary to curb such sales. By law, sale of military uniform in the open market is banned. It should not be available. If it is, there is a separate enforcement agency working on curbing the sale of military uniform. In J&K, they are very actively curbing the sale,” he added.

There is some latest updates which came regarding the sixth pay commission about the clarifications on the Increment and Promotions of Government Employees after Jan 1st,2006. This office memorandum was released on 13th Sept,2008 on the Govt OF India website. It basically deals with some issues where the employees needed a clarification like the date of next increment. Now there will be one uniform datej1st of every year.

As per it, all the employees who got their last increment between 02.01.2005 and 01.01.2006 would be getting their increment on 01.017.2006. There are some clarifications on the method of fixation of pay on promotion after January 1st 2006. Two more issues that it deals with are fixation of pay of the govt employees who were on deputation and who got promoted in the cadre subsequently while still on deputation.The last issue deals with a procedure of placing employees in the new upgraded pay scale in case of merger of scales which were recommended by the 6th pay commission.

A complete detailed report can be found out over here: You can read the complete analysis of 6th pay commission, pay calculator and much more.

Group 'D' employees of the Central government, including peons and drivers, can heave a sigh of relief as they are likely to get their 40 percent salary arrears in full without any income tax deduction on implementation of Sixth Pay Commission recommendations.

While the Group 'D' government employees will not have to pay tax on arrears, those belonging to higher levels can also claim marginal benefit by filing Form 10E of the Income Tax Returns, said a senior official of the Central Board of Direct Taxes (CBDT).

Among the Group 'D' employees, drivers receive highest salary because of over-time allowance, the tax official said, adding, "even they will fall short of the taxing limit by a whisker."

High ranking officials would not get as much benefit as their Group 'D' counterparts get as they already are in a larger tax bracket and may also be required to pay a "surcharge" on their salaries, Chartered Accountant Subhash Lakhotia said.

The government while approving the Pay Commission's recommendations said 40 percent of the arrears would be paid in the current year, while the remaining 60 percent would be disbursed in the next financial year. The arrears are with effect from January 2006.

On income tax liability on salary arrears, the official said, government employees would be required to pay taxes only on arrears which they would receive during the current year along with the benefits entitled under Section 89 and Rule 21 AA of the Income-Tax Act.

Lakhotia said senior officials "will only get a marginal benefit after filing Form 10E as the income-tax exemption limit for current year has increased."

Unhappy with modified Sixth Pay Commission award, taxmen have pointed out discrepancies in the revised pay scale and have sought Prime Minister Manmohan Singh's intervention in the matter.

Pointing out the discrepancies in the revised pay scale, income tax officials said when compared with their counterparts in some other departments, it amounted to virtually "lowering of status" of senior revenue officials.

"We are shocked at the decision of the government to ignore recommendations of the Pay Commission to upgrade the pay scale of members of CBDT to Rs 80,000 (fixed), even though the pay scales of Directors General of Police and Principal Chief Conservators of Forests have been upgraded without any recommendation," said a memorandum submitted by the Indian Revenue Service Association.

• Commission has recommended a minimum of 3330 rs pension except DA instead of earlier Basic plus DP.
• But further it has also qualify that basic pension should not be less than 50 % of the initial pay plus grade pay to be fixed corresponding to his old scale in which pensioner has retired basic start corresponding scale .
• As the govt has now enhanced the minimum basic pay +grade pay to 7000 from 6660 so new basic minimum pension should be 50 % of the basic pay i.e 50 % of 7000=3500
  
• so in my opinion (NOW CONFIRMED)as explained above no pensioner will get less than 3500 basic pay as on 01.01.2006
• The fixation as per this table will be subject to the provision that the revised pension, in no case, shall be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay thereon corresponding to the prerevised pay scale from which the pensioner had retired.
  

How to Fix new pension:Maximum of this will be your basic pension

• 2.26 of (old Basic pen )
• 3500 rs(as explained above)
• 50 % of minimum( Basic + grade pay )of new pay band corresponding to pay scale from which the pensioner retires
• maximum pension 50% of highest pay i.e 50 % of 90000=45000 basic
• Maximum Family pension 30% of 90000 i.e 27000.

so after calculation as above take maximum figure as your basic pension as on 01.01.2006 and then reduce the amount by commutation amount as earlier deducted from your old pension

EXAMPLE:1(PLEASE COMMENT IF WRONG WITH DETAIL)
	old (DETAIL)
scale(AT THE TIME OF RET)	4000-100-6000(S-7)
Basic at the time of retirement	5000
Pension fixed(50%)	2500
DP	1250
DA (as on 01.01.2006)	900
less commutaion(suppose)	600
pension befor allownaces	4050
MAXIMUM OF THREE WILL BE UR BASIC PENSION
AS ON 01.01.2006
CASE ONE	3500 (MINIMUM)
CASE TWO
(OLDBASICPEN*2.26	5650
CASE THREE
MINIMUM PAY BAND CORRESPONDING TO OLD SCALE
PAY BAND PB2 5200-20200
NOTIONAL BASIC	5200
GRADE PAY	2400
50 % OF BASIC & GRADE PAY	3800
NEW BASIC PENSION AS ON 01.01.2006=CASE TWO=5350
EXAMPLE:2(PLEASE COMMENT IF WRONG WITH DETAIL)
	old (DETAIL)
scale(AT THE TIME OF RET)	9000-275-9550(S-18)
Basic at the time of retirement	9000
Pension fixed(50%)	4500
DP	2250
DA (as on 01.01.2006)	1620
less commutaion(suppose)	1000
pension befor allownaces	7370
MAXIMUM OF THREE WILL BE UR BASIC PENSION
AS ON 01.01.2006
CASE ONE	3500 (MINIMUM)
CASE TWO
old basic pension*2.26	10170
CASE THREE
MINIMUM PAY BAND CORRESPONDING TO OLD SCALE
PAY BAND PB-3 15600-39100
NOTIONAL BASIC	15600
GRADE PAY	5400
50 % OF BASIC & GRADE PAY	10500
NEW BASIC PENSION AS ON 01.01.06 =CASE 3=10500

fill only two fileds first code relating to your old pay scale or new pay pand given below(1 to 36 in yellow cells) and basic pension(without dp ,if merged with it as on 01.01.2004) as on 01.01.2006 and get your arrers calculation .The old age allwance has not been considered(new rate given below) ,more over commutation has no impact on arrears ,hence not considered.
If you want to simple arrears calculation and your pension is not going to be fit at minimum of pay band that your arrears will jan .2006 to august 2008

Basic pension * 11.725135=arrears from 01.01.2006 to 31.08.2008
40% of arrears is to be given with September,2008 pension and balance in 2009-10
for exact calculation check calculator below

OLD SCALE		Revised New Scale	PAY BAND	GRADE Pay	code
S-1	2550-55-2660-60-3200	4440-7440	-1S	1300	1
S-2	2610-60-3150-65-3540	4440-7440	-1S	1400	2
S-2A	2610-60-2910-65-3300 -70-4000	4440-7440	-1S	1600	3
S-3	2650-65-3300-70-4000	4440-7440	-1S	1650	4
S-4	2750-70-3800-75-4400	5200-20200	PB-1	1800	5
S-5	3050-75-3950-80-4590	5200-20200	PB-1	1900	6
S-6	3200-85-4900	5200-20200	PB-1	2000	7
S-7	4000-100-6000	5200-20200	PB-1	2400	8
S-8	4500-125-7000	5200-20200	PB-1	2800	9
S-9	5000-150-8000	9300-34800	PB-2	4200	10
S-10	5500-175-9000	9300-34800	PB-2	4200	11
S-11	6500-200-6900	9300-34800	PB-2	4200	12
S-12	6500-200-10500	9300-34800	PB-2	4200	13
S-13	7450-225-11500	9300-34800	PB-2	4600	14
S-14	7500-250-12000	9300-34800	PB-2	4800	15
S-15	8000-275-13500	9300-34800	PB-2	5400	16
NEW	8000-275-13500	15600-39100	PB-3	5400	17
S-16	9000	15600-39100	PB-3	5400	18
S-17	9000-275-9550	15600-39100	PB-3	5400	19
S-18	10325-325-10975	15600-39100	PB-3	6600	20
S-19	10000-325-15200	15600-39100	PB-3	6600	21
S-20	10650-325-15850	15600-39100	PB-3	6600	22
S-21	12000-375-16500	15600-39100	PB-3	7600	23
S-22	12750-375-16500	15600-39100	PB-3	7600	24
S-23	12000-375-18000	15600-39100	PB-3	7600	25
S-24	14300-400-18300	37400-67000	PB-4	8700	26
S-25	15100-400-18300	37400-67000	PB-4	8700	27
S-26	16400-450-20000	37400-67000	PB-4	8900	28
S-27	16400-450-20900	37400-67000	PB-4	8900	29
S-28	14300-450-22400	37400-67000	PB-4	10000	30
S-29	18400-500-22400	37400-67000	PB-4	10000	31
S-30	22400-525-24500	37400-67000	PB-4	12000	32
S-31	22400-600-26000	75500-3%-80000	HAG	NIL	33
S-32	24050-650-26000	75500-3%-80000	HAG	NIL	34
S-33	26000(Fixed)	80000(Fixed)	APEX	0	35
S-34	30000(Fixed)	90000(Fixed)	CABSECT	0	36
OLD SCALE		Revised New Scale	PAY BAND	GRADE Pay	code
S-1	2550-55-2660-60-3200	4440-7440	-1S	1300	1
S-2	2610-60-3150-65-3540	4440-7440	-1S	1400	2
S-2A	2610-60-2910-65-3300 -70-4000	4440-7440	-1S	1600	3
S-3	2650-65-3300-70-4000	4440-7440	-1S	1650	4
S-4	2750-70-3800-75-4400	5200-20200	PB-1	1800	5
S-5	3050-75-3950-80-4590	5200-20200	PB-1	1900	6
S-6	3200-85-4900	5200-20200	PB-1	2000	7
S-7	4000-100-6000	5200-20200	PB-1	2400	8
S-8	4500-125-7000	5200-20200	PB-1	2800	9
S-9	5000-150-8000	9300-34800	PB-2	4200	10
S-10	5500-175-9000	9300-34800	PB-2	4200	11
S-11	6500-200-6900	9300-34800	PB-2	4200	12
S-12	6500-200-10500	9300-34800	PB-2	4200	13
S-13	7450-225-11500	9300-34800	PB-2	4600	14
S-14	7500-250-12000	9300-34800	PB-2	4800	15
S-15	8000-275-13500	9300-34800	PB-2	5400	16
NEW	8000-275-13500	15600-39100	PB-3	5400	17
S-16	9000	15600-39100	PB-3	5400	18
S-17	9000-275-9550	15600-39100	PB-3	5400	19
S-18	10325-325-10975	15600-39100	PB-3	6600	20
S-19	10000-325-15200	15600-39100	PB-3	6600	21
S-20	10650-325-15850	15600-39100	PB-3	6600	22
S-21	12000-375-16500	15600-39100	PB-3	7600	23
S-22	12750-375-16500	15600-39100	PB-3	7600	24
S-23	12000-375-18000	15600-39100	PB-3	7600	25
S-24	14300-400-18300	37400-67000	PB-4	8700	26
S-25	15100-400-18300	37400-67000	PB-4	8700	27
S-26	16400-450-20000	37400-67000	PB-4	8900	28
S-27	16400-450-20900	37400-67000	PB-4	8900	29
S-28	14300-450-22400	37400-67000	PB-4	10000	30
S-29	18400-500-22400	37400-67000	PB-4	10000	31
S-30	22400-525-24500	37400-67000	PB-4	12000	32
S-31	22400-600-26000	75500-3%-80000	HAG	NIL	33
S-32	24050-650-26000	75500-3%-80000	HAG	NIL	34
S-33	26000(Fixed)	80000(Fixed)	APEX	0	35
S-34	30000(Fixed)	90000(Fixed)	CABSECT	0	36