6th Pay Commission - Indian Railways

TH 6

PAY Indian COMMISSION Railways

Ravishankar Duvvuri – MBA HR, 2007-09

Introduct ion • Social Welfare focus • 14 departments • Revised Pay Scales & Bands with retrospective effect from 1/1/06 • Allowances with effect from 1/9/08 • Arrears Payment: 40 % 2008-09 & 60 % 2009-10 • Only current fiscal year’s arrears taxable

Organizational Structure & Levels - Railways

Group D employees (-1S)

•No future recruitment in this grade •All present Group D employees not possessing the prescribed qualifications are to be upgraded and placed in the Group ‘C’ running pay band PB-1 after they are suitably retrained •Group D employees possessing the minimum prescribed qualifications to be placed in PB-1 pay band straightaway. •Grade Pay for all Bands to determine seniority of posts within a cadre’s hierarchy & not between cadres

Group ‘C’(PB-1) & ‘B’ (PB-2)

• • •

Fitment – Increasing the lower end of scale April 2004- DA merged with basic pay 6th pay Commission set 24% as dearness pay Instead of compounding the two DA components — 50% as on April 1, 2004 and 24% as on January 1, 2006 — the commission added them, yielding a figure of 74% composite DA

New DA: 16% of Basic Pay (from 1.7.2008) •Base year of the Consumer Price Index (CPI) for computation of dearness allowance to be revised as frequently as feasible. •Formulation of a separate CPI for Government employees by National Statistical Commission for computation of dearness allowance suggested.

Group ‘A’ (PB-3 & PB-4)

Group ‘A’ & higher grades

Annual Increment & PRIS*

•RecommendedRate of annual increment: 2.5 % •Rate of variable increment for high achievers : Only for PB-3 (Group A) – 3.5% Approved Rate : 3 % Approved Rate for high achievers : 4% •Uniform date of annual increment-1st July of every year. •Employees completing 6 months and above in the revised pay structure as on 1st of July will be eligible to be granted the increment •High achievers up to 20% of PB-3 * Performance Related Incentive Scheme

Allowances (effective from 1.9.08)

• City Compensatory Allowance abolished • House Rent Allowance

• Leave Travel Concession – LTC to home town (in India) 3 times in 4 year block not exceeding once a year

•Transport Allowance: Newly introduced

•Deputation Allowance: Appointments made in public interest outside the normal field of deployment

Within Same Station : 5% of Basic pay subject to a maximum of Rs 2000 p.m In other cases: 10% of Basic pay subject to a maximum of Rs 4000 p.m

• Children Education Allowance Scheme

(Children Education Allowance and Reimbursement of Tuition Fee are merged) (nursery to 12th) – Children education Allowance (previously up to Rs.50 per child p.m) Revised up to Rs 1000 per child p.m – Annual ceiling per child limit Rs. 12000 – Hostel subsidy (previously Rs.300 p.m per child)reimbursed up to maximum of Rs. 3000 p.m per child – Both cannot be availed concurrently – Maximum limits would be raised by 25% every time DA on revised pay structure goes up by 50%

• Quantum of Maternity Leave & Child Care Leave – – – –

Maternity Leave existing ceiling enhanced from 135 to 180 days (Liberalized leave Rules, 1949) Child Care Leave introduced (admissible for eldest 2 surviving children only) Women can avail upto 2 years (730 days) to look after their minor children Leave may be allowed for 3rd year as leave not due

• ACP (Assured Career Progression): – Three upgradations will be granted under Assured Career Progression (ACP) Scheme at 10, 20 and 30 years – ACP Scheme will also be applicable to Group A employees – Financial upgradation through ACP will be available whenever a person has spent 10 years continuously in the same grade.

Pension & Gratuity

•Railways – 10.18 Lakh pensioners •Employees now entitled to full pension after completing 20 years of service (earlier 33 years) •Minimum pension raised from Rs. 2813 to Rs. 4060 •Upper Ceiling raised from Rs. 33075 to Rs. 52200 •So Cap has been raised 58 % while floor raised 44% •Higher rates of pension for retirees and family pensioners on attaining the age of 80, 85, 90, 95 and 100 years. •Gratuity cap raised from Rs. 3.5 lakhs to Rs.10 lakhs

Recommendations not accepted by Govt. • • •

Liberal ‘severance package’ for those employees who want to leave service without pension with more than 15, but less than 20 years of service. Recommendation relating to Holiday Policy that there should only be three closed holidays for Government employees. Flexi-hours for women employees and flexi-weeks for employees with disabilities

Recommendations to be considered separately •Recommendation related to Bonus and Over Time Allowance

•Recommendation related to General Provident Fund for Central Government employees and Central Government Employees Group Insurance Scheme •Introduction of Health Insurance Scheme for Central Government employees and pensioners.

Referen ces

• 6th Pay Commission Report & Annexure • Indian Railways Notifications RBE No. 103 to 162-appr implemented • Committee of Secretaries Report • Insights through personal experience & knowledge – Worked in Indian Railways from September 2004 to December 2006