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Assam 7th Pay Commission to be implemented from April next year

| | Nov 29, 2016, at 12:34 am
Guwahati, Nov 28 (IBNS) : Around 5 lakhs state government employees of Assam will get benefit after the state government has accepted the recommendation of the 7th Pay Commission in principal and it would be implemented by April next year.

Assam Finance minister Dr Himanta Biswa Sarma on Monday said that, to implement the 7th Pay Commission around 5 lakhs state government employees will get benefit.

“It would bring in an additional burden of Rs3238 crore on the state exchequer,” the Assam finance minister said.

Sarma said in a press conference that, Pay Commission has suggested increasing the minimum pay scale of a state government employee from the existing Rs. 6000 to Rs. 15900.

“The Assam government intends to implement it from April next year and form it around 5 lakhs state government employees would be benefited,” Sarma said.

“The Commission used the Aykroyd Formula for determining the minimum pay, as has been done by the 7th CPC. According to this analysis the minimum pay has been fixed at Rs.15900 which is 2.62 times the minimum pay recommended by the Assam Pay Commission 2008. This implies a real increase of 16.44% over the previous minimum pay. The Commission has recommended a maximum pay of Rs.1,30,000 as fixed pay and with this the ratio of the maximum pay to minimum pay has become 8.18 as against 9.08 in case of the earlier Pay Commission,” the Assam minister said.

According to the recommendations of the Pay Commission, the rate of increment has been recommended as 3% to be added on July 1 every year and employees completing three months or above in the grade as on July 1 shall be eligible for such increment.

“In the existing system an employee on reaching the maximum of the PB, spends two years from the date of last increment at that stage without further movement. At the end of two years he is eligible to move into next higher PB as a measure of financial upgration and given the increment. The Commission has recommended that on reaching the maximum of the PB the employee will continue to get the increment subject to crossing of EB in accordance with the provisions of FR 25,” Sarma said.

The Commission said in their recommendations that, the Commission considered the recommendations of 7th CPC to replace the PB-GP system introduced by 6th CPC by a new system of pay matrix. After examining all the issues the Commission has preferred and recommended the PB-GP system with suitable modifications in the light of the experience of last ten years in the State. Though it has recommended PB-GP system, it has prepared a Pay Matrix also for alternative consideration of the Government, if needed.

The Assam minister said that, the proposed pay structure accordingly has five pay bands and one fixed pay with total 24 GP. While the number of PB is same as before, the number of GP have been reduced by 6. While determining the minimum and maximum of a PB and the level of each GP, a relationship has been created between the previous PB and GP. The entire DA as on 1.1.2016 i.e. 125% of the basic, has been taken into account while creating this relationship.

“The gap between the GPs, thus determined, has been increased and by and large equalized. The range of the pre-revised GP was Rs.1500 to Rs.8700 with an average gap of Rs.248 which was not evenly distributed. The minimum gap was Rs.100 while in few cases the gap was Rs.500, Rs.600 and Rs.1100. In the revised system the range of GP is Rs.3900- Rs.18500 with an average gap of Rs.608. The minimum and maximum of the gaps is Rs.500 and Rs.1000,” Sarma said.

The Assam minister further said that, the minimum pay of the 5 revised PBs is 2.5 to 2.75 times of the minimum of the earlier corresponding minimum pay. Similarly the maximum of the 5 revised PBs is 2.43 to 2.75 times the corresponding previous figures. The span of the PBs are fairly comparable to that of the previous PBs.

“The Commission has recommended City Compensatory Allowance for employees working in Guwahati and Special Allowance for the Special Branch personnel. Additional quantum of pension equivalent to 20% of the pension drawn by the pensioners above 80 years of age has been recommended. Ceiling of DCRG has been increased to Rs.15.00 lakhs. Simplified procedure for medical reimbursement of pensioners has been suggested,” Sarma said.

“Family pension equal to the orginal pension is recommended till 7 years after the death of the pensioner or till the date the pensioner would have attained the age of 67 years, whichever isearlier. However in case of an employee who dies before retirement, the original pension will continue for ten years with a ceiling of 67 years of age. Benefit of increment, change in DA and pay revision if any, is also recommended for special family pensioners. Simplified procedure for grant of familypension to disabled children of the pensioner is also recommended. The Commission has also proposed equalization of pay for the ministerial staff of district establishments and director level establishments. This proposal is linked to a system of centralized recruitment through a Staff Selection Commission and a new model of transfers of such staff. A number of issues, raised by different departments have been examined and necessary recommendations have made in respect of these issues. The matter relating to productivity pay has been closely examined and it is recommended that before introducing any scheme for such pay certain other preliminary actions should be taken,” the Assam minister said.

The Assam Finance minister said that the financial implication of the recommendations for the year 2017-18 is estimated to be Rs.3238.28 crore of which Rs.2942.07 crore are for the revision of salary and pension.

“This also includes Rs.60 crore for the additional quantum of pension recommended for personers above 80 years of age. The Commission has taken 1.1.2016 as the date for calculation minimum pay etc. and has recommended 1st April 2017 as the date of effect for these recommendations. All allowances and benefits recommended by the Commission shall have prospective effect,” Sarma said.


(Reporting by Hemanta Kumar Nath)

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