New Delhi, Aug 14 : The Union Cabinet as an Independence Day bonanza for the civil servants, armed forces, paramilitary personnel and central government employees, approved the Sixth Pay Commission recommendations on Thursday.
The revised pay structure will ensure that there will be a 40 percent increase in the salary of government as well as defence employees.
The Sixth Pay Commission, which was headed by Justice B N Srikrishna, had in March submitted its report to the government, recommending an average 28 per cent hike for central government staff and defence personnel.
Prime Minister Manmohan Singh had on Wednesday held a meeting with External Affairs Minister Pranab Mukherjee, Defence Minister A K Antony and Finance Minister P Chidambaram to discuss the pay commission report and the recommendations of the empowered committee of Secretaries that went into it.
The new pay commission's recommendations will be effective from January 1, 2006 as the term of the Fifth Pay Commission ended on December 31, 2005. However, the arrears will not be disbursed in one go but will be divided into two components to be given by the end of next year. Forty percent of the arrears will be disbursed in 2008, while the remaining 60 percent will be doled out after March 2009.
As per the cleared proposal, the minimum basic pay for government employees has been revised to Rs 7000, while the minimum salary per month at the lowest level will now be Rs 10000.
At least three promotions will be ensured for both civilian and defence personnel. In case of civilians it will be at the 10th, 20th and 30th year and in case of defence by 16th, 18th and 24th year.
The financial implications, with the implementation of the new structure, for the central government for the year 2008-09 will be Rs 15,700, while for the railways it will be to the tune of Rs 6400.