In the new pay structure, Grade Pay has been normally taken as 40 per cent of the maximum of the pre-revised pay scales.  Every post barring that of the rank of the Secretary and the Cabinet Secretary, will have a distinct Grade Pay attached to it. Grade Pay, which will be a fixed amount attached to each post in the hierarchy, will determine the status of a post with a senior post being given higher Grade Pay.

The Commission also recommended that annual increments would be paid in the form of two-and-a-half per cent of the total pay in the Pay Band and the corresponding Grade Pay.

As the Commission has explained, the idea behind introducing running Pay Bands for all posts barring that of a Secretary and the Cabinet Secretary is to remove stagnation.

Significantly, the Pay Commission recommended that Dearness Allowance (DA), all other allowances like HRA and Transport Allowance and facilities like pension be calculated on the basis of sum of Pay Band and Grade Pay. The date of annual increments in all cases will be July 1 every year. The pay panel while recommending abolition of Compensatory City Allowance (CCA) proposed its merger with the Transport Allowance, which is proposed to be increased by four times.  Significantly, in a bid to offset the adverse impact of inflation on the salaries, the Commission recommended all fixed allowances made inflation proof with provisions of automatic revision whenever DA payable on revised Pay Bands goes up by 50 per cent.

It also recommended that Transport Allowance be increased every year on the basis of increase in the DA. 

Showing that Commission attached importance to education employees’ wards, it recommended an increase in the reimbursement of education allowance from existing Rs 50 to Rs 1000 per child per month —subject to the maximum of two children. It also proposed a massive hike in hostel subsidy from the existing Rs 300 per month to Rs 3000 per month.  

In a bid to promote qualitative improvement of specialised high skilled service in the higher echelons, the Commission recommended market-oriented salary packages with a provision of contractual employment.

The idea is to attract high skilled professionals such as scientists.

As part of exercise to promote performance-based award system the pay panel has recommended a scheme of Performance Related Incentive Scheme (PRIS). “PRIS should also work as a substitute for bonus, honorarium and overtime allowances,” the Commission recommended.

The Commission proposed that the government offices remain closed only on three national holidays.

While proposing that all other gazetted holidays be abolished, it recommended that these be compensated by increasing the number of restricted holidays from two to eight days in a year. 

Retirement age

Contrary to reports, the panel seeks to retain the superannuation age at 60 years, while recommending concession on this count for scientists and medical specialists. The panel cautioned that partial implementation of the recommendation “will bring in several anomalies and inconsistencies”.