6th Pay Commission - Indian Railways

Ravishankar Duvvuri – MBA HR, 2007-09

• Social Welfare focus Group In Position (Railway • 14 departments employees) 31/3/2005 • Revised Pay Scales & Bands with A 8285 retrospective effect from 1/1/06 B 7247 • Allowances with effect from 1/9/08 C 873536 • Arrears Payment: 40 % 2008-09 & D 521578 60 % 2009-10 Total 1410646 • Only current fiscal year’s arrears taxable • Age of Super-Annuation-60 years

Old Levels Revised Top to Bottom (Stores Dept. Assumed) Railway Board members Zonal Chief Group ‘A’ PB-3 & General Manager (Railway) Officers PB-4 Controller Of Stores Dy. COS DCOS Group ‘B’ PB-2 Sr. Material Manager -officers Asst. Material Manager/ Asst. Controller of Stores Gr. C- PB-1 Office Superintendent 1 Supervisor Office Superintendent 2 y Staff Gr. C – Head Clerk clerical PB-1 Senior Clerk Grade Junior Clerk Group D -1S Auxiliary Staff

Pre-Revised Revised Approved Band Pay Scale Band Pay Scale Grade Pay Pay Scale Grade Pay 2550-55-2600-60- 4440-7440 4440-7440 S-1 -1S 1300 1300 3200 2610-60-3150-65- 4440-7440 4440-7440 S-2 -1S 1400 1400 3540 2610-60-2910-65- 4440-7440 4440-7440 S-2A -1S 1600 1600 3300 2650-65-3300-70- 4440-7440 4440-7440 S-3 -1S 1650 1650 4000 •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

Pre-Revised Revised Approved Band Pay Scale Band Pay Scale Grade Pay Pay Scale Grade Pay 2750-70-3800-75- 4860-20200 5200-20200 S-4 PB-1 1800 1800 4400 3050-75-3950-80- 4860-20200 5200-20200 S-5 PB-1 1900 1900 4590 3200-85-4900 4860-20200 5200-20200 S-6 PB-1 2000 2000 4000-100-6000 4860-20200 5200-20200 S-7 PB-1 2400 2400 4500-125-7000 4860-20200 5200-20200 S-8 PB-1 2800 2800 5000-150-8000 8700-34800 9300-34800 S-9 PB-2 4200 4200 5500-175-9000 8700-34800 9300-34800 S-10 PB-2 4200 4200 6000-200-9800 8700-34800 9300-34800 S-11 PB-2 4200 4200 6500-200-10500 8700-34800 9300-34800 S-12 PB-2 4200 4200 7450-225-11500 8700-34800 9300-34800 S-13 PB-2 4600 4600 7500-250-12000 8700-34800 9300-34800 S-14 PB-2 4800 4800 8000-275-13500 8700-34800 9300-34800 S-15 PB-2 5400 5400

• 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 Basic Pay calculation since 1/1/2006 (Amount in Rs.) Basic Pay DA DA % Pre -April 2004 100 50 50% 150 From 1/4/2004-Merged Basic Pay 6th pay effective date- 1/1/2006 150 36 24% 186 Govt approved Merged Basic Pay 6th Pay Commission added % instead of compounding 6th Pay commission calculated 100 74 74% 174 6th comm-Merged Basic Pay

New lower end basic pay calculation old BP DA (86%) Total Rounded off PB1 2750 2365 5115 5200 PB2 5000 4300 9300 9300 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.

Pre-Revised Revised Approved Band Pay Scale Band Pay Scale Grade Pay Band Pay Scale Grade Pay 9000 15600-39100 15600-39100 S-16 PB-3 5400 PB-3 5400 9000-275-9550 15600-39100 15600-39100 S-17 PB-3 5400 PB-3 5400 10325-325-10975 15600-39100 15600-39100 S-18 PB-3 6100 PB-3 6600 10000-325-15200 15600-39100 15600-39100 S-19 PB-3 6100 PB-3 6600 10650-325-15850 15600-39100 15600-39100 S-20 PB-3 6500 PB-3 6600 12000-375-16500 15600-39100 15600-39100 S-21 PB-3 6600 PB-3 7600 12750-375-16500 15600-39100 15600-39100 S-22 PB-3 7300 PB-3 7600 12000-375-18000 15600-39100 15600-39100 S-23 PB-3 7600 PB-3 7600 14300-400-18300 15600-39100 37400-67000 S-24 PB-3 7600 PB-4 8700 15100-400-18300 15600-39100 37400-67000 S-25 PB-3 8300 PB-4 8700 16400-450-20000 15600-39100 37400-67000 S-26 PB-3 8400 PB-4 8900 16400-450-20900 15600-39100 37400-67000 S-27 PB-3 8400 PB-4 8900

Pre-Revised Revised Approved Band Pay Scale Band Pay Scale Grade Pay Band Pay Scale Grade Pay 14300-450-22400 39200-67000 37400-67000 S-28 PB-4 9000 PB-4 10000 18400-500-22400 39200-67000 37400-67000 S-29 PB-4 9000 PB-4 10000 22400-525-24500 39200-67000 37400-67000 S-30 PB-4 11000 PB-4 12000 22400-600-26000 39200-67000 75500-3%- S-31 PB-4 13000 HAG Nil 80000 + Scale 24050-650-26000 39200-67000 75500-3%- S-32 PB-4 13000 HAG Nil 80000 + Scale 26000 (Fixed) 80000 (Fixed) 80000 (Fixed) S-33 Apex Nil Apex Nil Scale Scale 30000 (Fixed) 90000 (Fixed) 90000 (Fixed) S-34 Cab. Nil Cab. Nil Sec. Sec.

•Recommended Rate 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

• City Compensatory Allowance abolished • House Rent Allowance Classification of Rate of HRA as % of (Basic towns/cities +NPA where applicable) X = A1 30 % Y = A, B-1 & B-2 20 % Z = C & unclassified 10 % • 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 • Travel entitlements to be paid on actuals

• 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. •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

• 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 •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.

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

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6th Pay Commission - Indian Railways

by Ravishankar Duvvuri

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