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Implications of the Sixth Central Pay Commission Report

The Sixth Central Pay Commission (CPC) was released recently leading to much analysis and talk among the bureaucracy. Having a tough time sifting through the highlights?

Glowfriend is writing a series of detailed posts of the CPC’s implications. Part 1, 2, 3, and 4 are already out. Keep an eye out for more.

If you liked our recommended link, subscribe to our full content.

9 comments

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V K Das
March 31st, 2008, 10:52 pm | #

Implications are of the report for the employees.Please get your English right.

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Patrix
April 1st, 2008, 12:47 am | #

Right you are..sometimes sometimes English not coming.

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Aswathi
April 9th, 2008, 12:07 am | #

Discrimination against employees joining Central Government service after January 2004, and not eligible for old pension scheme

The 6th pay commission has totally ignored the interests of employees who have joined Central Government service after 01-01-2004, and hence are not covered by the attractive old pension scheme. The interests of employees of autonomous societies under central government, who are not offered the attractive old pension scheme are also ignored.

The value of pension granted by the Government to employees who joined before 01-01-2004, is much higher than the 10% contribution being made by the Government for CPF for the new employees. The pay commission should have proposed additional compensation for the central government employees, who are not eligible for the old pension scheme, so that both get the same total benefits for the same work being performed.

The employees in private companies get 12% monthly contribution from employer for EPF, which is higher than what the new central Government employees get. But the pay commission report states “mere comparison of the pay or pay scale without taking cognizance of the total package of allowances and benefits available within the Government may not be appropriate especially as the value of pension granted by the Government and the value of job security provided cannotbe undermined since they form major components of the total package.”

It may be noted that the new central Government employees are getting very much less pension benefits compared to both old central government employees as well as the private sector employees. But the pay commission has totally and conveniently forgotten this point, maybe because the the IAS officers in powerful positions are interested only in making their existing pension schemes more attractive.

Hence, it is requested that the Government should initiate an actuarial study on the old pension scheme, and provide additional compensation to the new employees so that the pension savings of the new employees after 20 years, should be equal to the value of life long full pension with benefits of commutation, DA increases, and pay revisions. If the Government feels that the benefits under the old defined benefits pension scheme is not having much higher value compared to that offered by the new contributory scheme, then the Governemnt may offer option to the new employees to opt for the old pension scheme.

If that is not possible, the Government should atleast not give any more pension related benefits to employees covered by old pension scheme, without giving equal benefits to the new employees not covered by the old pension scheme.

Does the pay commission want the new employees, not covered by the attractive old pension scheme, to go to court and fight for natural justice? Natural justice demands that persons doing the same job under the same employer should get the same total salary and benefits.

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Arup Das
April 12th, 2008, 8:00 am | #

Concerns of Technical Civilian officers in Army working under the Army officers were always neglected. Beacause of their minority nature in Army, they were bound to work extra times frequently to avoid any hot conversation with CO/Commandant.Most of the solution for technical/ground problems were provided by them in their est. They have no promotional scope. But MoD. is also deserious about their pay and structures.

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krishnendu roy chowdhury
April 21st, 2008, 1:13 am | #

I totally agree with this write up about new pension scheme. Myself, I am a Stenographer under NEW PENSION SCHEMe. I shy away from telling my friends that though i am a central govt. employee (Rail) i dont have either gratuity or PF, let alone pension. Even private ltd. companies offer gratuity and any one who has worked there for a continuous period of 5 years gets Gratuity if he or she wants to leave the company after 5 years.

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js
April 21st, 2008, 11:35 pm | #

I totatlly agree with the views on New Pension Scheme. I think the employees are suffering because of their minorities(as the number of employees joining after 1-1-2004 is very less.) Also the 6 th pay commision as not even found worth mentioning the employees under new pension scheme.

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YJP
July 24th, 2008, 4:02 am | #

If an employee working under central govt. autonomous body resigns in Aug-2007 (after putting 6 years of service i.e. 2001-2007). Will he be entitled to get arrears of pay (difference of 5th and 6th pay commission) from Jan-2006?

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paul
August 10th, 2008, 9:30 pm | #

Regarding the new pension scheme also dont forget the fact that it has not yet been passed in the parliament..even the govt is implementing it..its high time some one has gone to court…

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darya singh
August 11th, 2008, 11:09 pm | #

When is going to announce 6th CPC revised pay sacales and date of effect, anybody knows, pl inform

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