Suggestions - All India Federation of Pensioners' Association
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Sixth Central Pay Commission:Suggestions
User Name: All India Federation of Pensioners' Association Chennai
Comparison with public/private sectors
Should there be any comparison/parity between pay scales and perquisites in Government and the public/private sector?
At the time of Independence, there were no public sector undertakings. Except Tatas and Birlas there were no notable private sector undertakings. During the early plan periods, the government wanted to create infrastructure for future development of the country. As there were no entrepreneurs who could take up such big projects, public sector undertakings were created. Most of the public sector undertakings were initially manned by manpower drawn from the government. The administrative set up was similar to government but with better scales of pay. The Nationalisation of Banks, the Nationalization of Life Insurance, were able to partly finance the government expenditure on major projects. Loans from World Bank, IMF, Colombo plans etc. were also available. Later, the Unit Trust of India came into existence. They did boost up the economy. The present day entrepreneurs owe a lot for their fast development and they are now in a position to take up major projects on their own or in collaboration with foreign firms not only in India but in other countries also Thanks to liberalization, not only in India but in other countries also foreign money is flowing heavily into the country through Foreign Direct Investment and Foreign Institutional Investments Disinvestments from public sector undertakings and lowering the limit of govt. holding in public sector undertakings, make available enough funds. The private sector is profit oriented. They attract the best available talent in the country and pay heavily. The entire cost is absorbed in the cost of products including the profit elements The booming IT industry and out sourcing had further raised the level of pay scales and private sector is coping up with them in improving the scales of pay of their executives. To some extent, the scales may be compared with that of public sector undertakings. The public sector undertakings/enterprises is service oriented and to some extent profit oriented. Of late to prevented migration of talent, they are also forced to revise the scales of pay of their executives. The Govt. departments are totally service oriented and there is no element of profit. Hence it is not at all possible to induct the pay scales prevalent in public sector / private sector. Therefore, it is not possible for the government to adopt the scales of pay available in private sector. To some extent, the scales may be compared with that of public sector undertakings. At present, the govt. scales are for below the PSUS and with the revision of pay scales in PSUS in Jan 2007, the gap will be further widened. While fixing the scales of pay of top most executives in the government the ratio between the minimum of the highest scales and the minimum of the lowest scales will have to be maintained at a decent level say 10.1
Is it possible to quantify all other benefits, excluding pay, derived by employees in Government and the public and private sectors from security of tenure, promotional avenues, retirement packages, housing and other invisibles? In view of these benefits, can there be any fair comparison between the salaries available in the government vis-ŕ-vis the salaries in the private sector?
It is not possible to quantify all the benefits other than pay in the govt. and other public or private sectors. There are no definite standards in private sectors and varies from one company to other. It may be pertinent to note that the pensionary benefit of government establishment is not available to those in private sector/public sector units, which also has to be considered.
In order to ensure a fair comparison based on principles of equity and social justice, would it not also be appropriate to take into account the economic conditions of large sections of the community that are less privileged than Government employees and many of whom live below the poverty line?
The problems of economic conditions of large sections of the community those are less privileged than government employees and many of who live below the poverty line are gigantic, and should be tackled by the Planning Commission and the National Development Council. Are these factors taken into account by the private sector or the public sector, in fixing the remuneration of their employees? The Members of Parliament of both houses who are nearest in touch with those below the poverty line had got a hike in their pay and allowances recently, and they serve the nation for a period of five/six years only. The impact which a modest revision of pay scales of Central Govt. employees will have on those below the poverty line is negligible. Hence no reference should be made to those living below the poverty line.
International comparisons
Some countries have raised civil service pay scales almost to levels prevalent in the private sector on the hypothesis that a well-paid bureaucracy is likely to be honest and diligent. To what extent would such a hypothesis be valid and how far would such a course of action be desirable?
Economically advanced countries may afford such an exercise but not a developing country. In America, the ratio of the minimum of the highest scale to that of the minimum of the lowest scale is 140:1. It is stated "that the indexing chasm between the highest and lowest paid employee is a matter of concern to the corporate. Finally upper level management in India is increasingly receiving pay packages that were unthinkable a few years ago. They are conscious of pay standards and are adopting their compensation in the global context. Very often the compensation in the US/UK act as bench marks. And in the bargain , the super rich are now becoming marvelously rich." (Business India - 5th November 2006 page 5) If such standard are applied to top executives of the govt. The ratio of 10:1 should be applied uniformly.
Impact on other organizations
Salary structure in the Central and State Governments is broadly similar. The recommendations of the Pay Commission are likely to lead to similar demands from employees of State Governments, municipal bodies, panchayati raj institutions & autonomous institutions Their paying capacity is considerably limited. To what extent should this factor be considered in devising a reasonable remuneration package for Central Government employees?
The comparison or consideration of the pay scales of State Governments is a rise to down grade the possible enhancement of the C.G. employees pay structure. India is a Federal Country and in a federal set up. the States enjoy autonomy in several fields. The pay scales of Central Govt. differs from the pay scales of State Governments who have not opted to Central scales of pay. Further the pay scales differ from State to State. Some of the States like Kerala, Kamataka and Andhra, have set up their own pay commissions and they have not consulted the Central government. The Tamilnadu Govt. set up its sixth Pay Commission after the fifth pay commission recommendations were implemented by the Central Government. The Second Pay Commission has noticed that in America, Canada and Australia, where there is federal set up the pay scales of the federal govt. differed from those in the States and among the States themselves, there was no uniformity. Further, Defence is the responsibility of the Central Government. When 50% of the C.G.Employees are in the defence department, and there is no corresponding structure in State Governments how can a comparison be made? It is understandable that the state government employees claim Central Scales of pay. But that cannot be the reason as to why Central Govt. should consider this issue with reference to the States.
Salaries
How should we determine the salary to be paid to a Secretary in the Central Government? Please suggest an appropriate basic pay for a Secretary? Can appointment to this post be made on a contractual basis where salaries and tenure are linked to the performance in terms of achieving defined targets?
The ratio between the minimum of the highest and lowest scales as per the previous pay commission are given below. 2nd CPC: 900 : 75 = 12:1 3rd CPC: 3500 : 232 = 15:1 4th CPC: 9000 : 750 = 12:1 5th CPC : 24050 : 2550 = 9:4 We have no objection for the salary of the secretaries of Central Govt. is raised substantially and the ratio of 10:1 is maintained in fixing the remuneration of the lowest scale. The ratio 10.1 is between the minimum of the highest scale and the minimum of the lowest scale. This distorts the relativity between other scales. The minimum of the lowest scale in Gr.C should be 3 times the minimum of the lowest scale. The minimum of Gr. B scale should be 6 times the minimum of the lowest scale. Regarding contractual employment basis, we state as follows. Is it the intention to get suitable men for these posts from private and public sector? Then we are opposed to this scheme. In private sector, the top-level executives are answerable only to their company. But our secretaries are answerable to the parliament and the people. The executives in private/public sector are conversant with only the policies of their companies, which are limited. In a vast country like ours, with various states, it is not possible. The Central Govt. laws, and functioning is the result over 200 years of experience and only persons who serve the govt. for over 20 years can have the knowledge to run an efficient government. Such knowledge and experience will be wanting if such secretaries are imported for a few years and, it is also not sure whether they will stick to their job. It may be due to lack of job satisfaction and /or remuneration, which they will get by switching back to private/public sector. We are not therefore in favour of such a scheme. Their commitment to service in govt. is only to get higher remuneration and not service motivated.
Relativities
Employees in the Secretariat and analogous establishments are entitled to higher pay scales than the corresponding field functionaries. This was supposed to compensate them for the loss of certain facilities available to them in field assignments and the extra effort required for decision-making at the policy level. Are these factors valid even today particularly in the context of decentralization and devolution of administrative powers? Is this discrimination between field and secretariat functionaries even justified today?
Yes they are valid. The Secretariat is a storehouse of laws and regulation and practices. The lower level of administration should be conversant with those practices. Field experience may be an additional qualification for such employees.
Group-A Services
Is there a case for a Unified Civil Service, merging therein all Central (both technical and non-technical) and All India Services, allowing vertical and horizontal movement ? Or should there be two distinct streams, one embracing all the technical services and the other for non-technical services?
The existing set up should continue as this affords specialization in different fields. The technical field should not be combined with non technical fields.
Do you feel that the pattern of pay scales for all Group A Services should be redesignated so as to attract candidates of the requisite caliber? Keeping in view some of the compensation packages being offered to fresh professionals by the private sector, what emoluments would you suggest for an entrant to a Group-A Service in Government?
6.2 There is definitely a case for betterment in the pattern of pay scales for all Group 'A' officers. The starting pays for a group I officer, after passing IAS is Rs.8000 This salary, is far less than the pay of an employee at the lowest grade in B.P.Os' and far less in r/o persons who are recruited in campus interviews. At the same time the relativity to the lowest scale is 10.1 should also be maintained.
Professional personnel
Should there be a higher compensation package for scientists in certain specialized streams/departments like Department of Space, Department of Atomic Energy? If so, what should be the reasonable package in their case?
Yes their knowledge and experience as also keeping secrets are essential for the country's development. In the 5th CPC exception was made in the case of Chairman of Atomic energy commission. Such exception may be made in r/o lower categories also keeping in view of defence needs and secretary.
Classification of posts
Presently, civilian posts in the Central Government are classified into four Groups (A, B, C and D) with reference to their scales of pay. The Fifth Central Pay Commission had recommended their reclassification into Executive, Supervisory, Supporting and Auxiliary Staff. Would you suggest any changes in the existing classification or should the classification recommended by Fifth Central Pay Commission be adopted with/without modifications?
The existing classification of posts is satisfactory. It need not be changed.
Restructuring of Group C & D posts
Should all lower Group C functionaries in the Secretariat be replaced by multi-functional Executive Assistants, who would be graduates and well versed in office work, secretarial skills and use of modern office equipment including computers? Should Similar arrangements can be evolved for Group C posts in other organisations of Government?
Yes group C&D employees also should be given the same training which will increase the efficiency in their work.
Pay Scales
How should a pay scale be structured? What is a reasonable ratio between the minimum and maximum of a pay scale?
The maximum of each scale to the minimum of such scales may be fixed at 50% to group D, 40% Group C,B and 30% to Group A.
The successive Pay Commissions have progressively reduced the number of distinct pay scales. The number of scales has therefore come down from more than 500 scales at the time of the Second Central Pay Commission to 51 scales before Fifth Central Pay Commission, which was brought down to 33 scales by the Fifth Central Pay Commission. The reduction in the number of pay scales brings in attendant problems like the promotion and the feeder grades coming to lie in the same pay scale, etc. Do you feel whether the existing number of pay scales should be retained or increased or decreased or whether the same should be replaced by a running pay scale?
The pay scales recommended by the pay commissions, and the no. of pay scales introduced by the government in the interim periods are furnished below. 156 scales 517 u 140 u 536 it 80 u 153 » 42 K 33 tl 1. 1st pay commission recommended 2. When the 2nd PC was constituted It was increased to 3. 2nd CPC reduced it to 4. When 3rd CPC was constituted 5. 3rd CPC reduced it to 6. When 4th CPC was constituted 7. 4th CPC reduced it to 8. 5th CPC reduced it to 9. After the 5th CPC a few scales were revised in the Engineering side in Rlys'. Revenue (income tax, central excise and customs) and Accounts cadre. Based on the experience of the previous Pay Commissions. It is our view that the no. of pay scales should be raised to at least 50. Running pay scales is not conducive for efficiency. At the same time, in promotional cadre the minimum of the highest scale should be at least 75% over the minimum of the lower scale or 25% of the maximum of the lower scale. In case a few scales are bunched, the persons in the lowest scale derive the maximum benefited. To offset this it is suggested that the pay of the employee in highest scale be raised by the difference between minimum of the highest and minimum of the lowest scale which are bunched Similar method can be adopted in respect of the scales which are in between the highest and the lowest scale merged
Increments
What should be the criteria for determining the rates and frequency of increments in respect of different scales of pay? Should these bear a uniform or varying relationship with the minima and/or maxima of the scales?
The existing procedure may continue. Advance increments may be recommended to induce efficiency.
Revision of pay scales
Is there any need to revise the pay scales periodically especially when 100% neutralization for inflation is available in form of dearness allowance?
The 100% neutralization is to keep in line with the increase in cost of living. In fact, our feeling is that the cost of living index as calculated now in not reflecting reality. There is vide variance between consumer price index and whole sale price index. A new index has been introduced w.e.f. 1.1.2004 as basis with the multiplying factor of 4.63 to bring the index to 1982 base. This revision of calculation of index was done unilaterally by the govt. without taking into account the views of the affected parties(stake holders).The Prime Minister had promised to review the case. The revision of pay scales has nothing to-do with the neutralization. We are demanding upward revision of the scales to be in tune with the national productivity during the last decade. It is this factor that made the Govt. to increase the basic wage to 40% instead of 20% recommended by the 5th CPC Point to point fixation is the correct way. The seniors getting less pay then the juniors, can be stepped up, if such cases come to notice. This practice is being followed now.
Compensatory Allowances
Is City Compensatory Allowance a sufficient compensation for the problems of a large city? If DA and HRA provide full neutralization, do you think CCA should continue? Is there a need for changing the basis of classification of cities and the rates of CCA? If so, please suggest the revised basis and rates.
A part from DA and HRA which are granted to neutralize increased cost of living, and accommodation, there are several factors that making living costly in cities. Such as transport, entertainment, tuition fees, medical expenditure. The 5th CPC has stated "Deamess allowance, thus, does not seek to provide compensation for the relative costliness of cities. Secondly the All India Price Consumer Index (Industrial worker (AICPI (IW) in use for the payment of dearness allowance does not include services like education, medical services, health etc. though housing, fuel and electricity are included, while there do exist separate allowances to reimburse these services, none of these is fully reimbursed CCA is paid as a correction factor for compensating the employees for the relative costliness of cities. To compensate them compensatory allowance should be granted. The rates of CCA should be increased. The classification of cities may be reviewed in the basis of next census. Pay scales of Armed Forces should be based on the broad parity with Civil Services of equivalent cadre. They may be compensated for special and hazardous nature of duties by grant of special pay, at different rate for different cadres, which should be counted of pension. The services of the armed forces when there is no war should be availed for nation building activities such as construction of Bridges, Roads, strengthening of river bunds etc.
Abolition of feudalism
Should all vestiges of feudalism in the country like huge residential bungalows sprawling over several acres, large number of servant quarters, retinues of personal staff, bungalow peons, use of uniformed personnel as batmen or on unnecessary security or ceremonial duties etc. be abolished? Please make concrete suggestions.
The vestiges of feudalism cannot totally abolished. They may be reduced consistent with the post held. Monetary compensation may be given to them to have their personal staff such as drivers, cooks, servants etc.,
Specific proposals
In what manner can Central Government organizations functioning be improved to make them more professional, citizen-friendly and delivery oriented?
There should b e a training and refresher course for all the class III & II cadres to familiarize them with modern methods of management. This should be a continuous process which can be provided by staff training colleges. Field visits should also be arranged so that the problems of the Urban, and rural population are understood and remedial measures adopted. Corruption is the frame of mind and officials should be properly educated to have a corruption free government which will be able to deliver goods cheaper and faster.
Please outline specific proposals, which could result in: (i) Reduction and redeployment of staff, (ii) Reduction of paper work, (iii) Better work environment, (iv) Economy in expenditure, (v) Professionalisation of services, (vi) Reduction in litigation on service matters, (vii) Better delivery of service by government agencies to their users.
(1) Reduction and redeployment of staff. There is a wrong notion that there surplus staff in central government. May be true in certain pockets but not in general. It should be remembered that 50% of staff are in the Defence department and considering the external threats and internal disturbances due to naxalite and other terrorist groups, there is no scope for reduction. The next highest employer is the Railways. The Railway minister is stating that thousands of crores are to be spent in the next fiveYears. Even if the work is entrusted to private parties the maintenance of the assets created and the increase in passenger and freight traffic will definitely require more employees. Hence reduction in railways is not possible. It is stated that the Railway Minister has lifted the ban in recruitment. This itself indicates that there are no surplus staff in Railways. Consequent on the formation of BSNL there is a fall in the no. of central govt. employees. As per the fifth pay commission recommendation 3 lakhs posts which were vacant for 3years were abolished. The finance minister has stated that thousands of persons are to be recruited next year to cope up with increased volume of work. The no. of posts in each office/department is sanctioned on the basis of specific standards approved by govt. after time test. The staff sanctioned by each department are critically evaluated by the staff inspection unit of the Ministry of Finance and excess staff, if any, ordered to be deployed. There had been ban on recruitment since 1984, and the retirement vacancies were also not filled up. The savings on a/c of non filling up of these posts during the past twenty years, which is hidden in the accounts, will be sufficient to meet the cost of Pay Commission recommendations. The Finance Ministry cell may be required to furnish the details of no. of retirees each year no. of posts sanctioned each year, no. of posts remaining unfilled from 1995 to 2005. The Finance Ministry (Pay Research Unit) is publishing a brochure in this regard and they will reveal the true position. The brochure also indicates the various scales of State Govt. posts with comparable posts in Central government This will clearly indicate that sufficient reduction in the establishment had already been made, and in view of large scale development of infrastructure in the 11th plan period, there is more scope for increasing employment opportunities than for reduction of employees. As per "Business today" sep. 2006 issues no. of posts lying vacant in various Central Govt. Ministries and departments in the country is 4.32 lakhs which is approximately 121/2% of the no. of serving employees. As per the 5th CPC recommendations the savings on a/c of abolition/non filling up of posts should be utilized to increase the earnings of the remaining employees. If the calculation are made correctly, there will be enough funds though hidden, to meet the extra cost on a/c of implementation of 6th CPC Reduction of papers work: A study can be made in consultation of the staff side of JCM and common efforts made in this direction. 11 Hi Better work environment no comments. iv Economy in expenditure: There is always scope for economy in expenditure (non-plan) But this should not been done by reduction of staff, curtailing improved scales of pay, etc. The heavy expenditure in the Central govt. is mainly due to grant of subsidies & payment of interest. Though the white paper issued by the present finance minister, white he was Finance Minister earlier had discussed this issue thread bare and have suggested various measures to reduce the burden of subsidies, due to socio-economic and political reasons, they have not been implemented. It may be stated that the State Governments are in the habit of granting freebies to the people such as free electricity to farmers and handloom workers, subsidized rice, free colour TV sets, 2 acres of land, free gas stoves, free cows etc to the electorate at Govt. expense. They do not consult the centre while doing so. But fro implementing Central scales of pay, they require Centres assistance. V No comments Vi Reduction in litigation on service matters The Central administrative tribunals were established to deal with service matters. This was done on a/c of specialization in service matters and reduction of burden in the already over burdened High courts. But there is a recent move to empower the government to abolish the C.A.Ts. This is quite against the government s' own views. The largest litigant in service matters is he government. The reasons are lacunae in framing rules, improper understanding of the rules and the adverse judgments passed against the government in a majority of cases. In fact, several cases where judgments were delivered by the courts, they have been only honored in the specific cases, but not extended to similarly placed persons, when such judgement are based on merits. This is a conspiracy of the executive which is contrary to govt. intentions. The Fifth CPC recommendations are clear in this regard. Instead of abolishing the tribunals , the govt. should be advised to implement the judgements in letter and spirit in r/o similarly placed persons even though such judgements were not "in Rem". Vii No comments : The training suggested in previous para, may include this aspect.
New concepts
Do you think the concepts of contractual appointment, part-time work, flexible job description, flexi time etc. need to be introduced in Government to change the environment, provide more jobs and impart flexibility to the working conditions of employees?
The Hire and fire method that is widely prevalent in private sector should not be introduced in government. The govt. employees should be loyal, and security of tenure is essential. More jobs cannot be created by dismissing the existing staff. The labour reforms should not be extended to govt. establishment.
For improving punctuality/introducing new concepts like flexi time, should biometric entry/exit be introduced?
Any scheme for imparting punctuality is welcome. As said earlier, this aspect should also be taken while imparting training.
What steps should be taken to ensure that scientists, doctors, engineers and other professionals with sophisticated education and skills are retained in their specialized fields in Government? Should they be appointed on contract with a higher status and initial pay, advance increments, better service conditions, etc.?
Recently, the Central Govt. had raised the retirement age of teachers to 62, as also the doctors in CGHS. This is not the correct solution. In fact, this discriminates the other employees in the age of retirement and will be struck down if referred to a court of law. The solution would be to grant attractive scales of pay, which should be commensurate with their educational and technical fields and also the experience . Higher initial start in the prescribed scales is not against rules and may be resorted to in recruiting such staff for government employment.
Should there be lateral movement from Government to non-Government jobs and vice versa? If so, in which sphere(s) and to what extent ?
Shift from govt. to non government jobs may be done but not the reverse. "In 1954, the government formulated a policy that allowed bureaucrats to move out of their fold and return after a short stint. The original idea must have been to enrich other sectors, service the bureaucracy them attracted the best talent in the country. The rule, was long forgotten, for opportunities, especially in the Private Sector, were few and for between today however, this, the legalese of which is articulated in sec(2) (2) of The All India Service Rules (con—) rules 1968, happens to be the most prized ticket in the Civil Services. The outflow of top-level executives from public sector to private sector is on the increase of late. This is affecting the top executives in govt. sector also. The creation of special economic zones has opened great opportunities to top level government executives as they are well versed in govt. laws and practice and the no. of applications for such movement is increasing. This cannot be stopped-even if the pay of top executives is increased. "Business Today, OCT 22, 2006 issue".
It has been suggested that existing Government employees should be encouraged to shift to employment on contract for specified periods in return for a substantially higher remuneration package. Would you agree?
We are opposed to the scheme
Performance Appraisal
In what way should be present system of performance appraisal be changed? Should be ACR be an open document?
Existing procedure may continue
How far has the introduction of self-assessment helped in the process of appraisal?
Existing procedure may continue
Should appraisal be done for an entire team instead of for individuals?
Existing procedure may continue
In what manner can Government employees be made personally accountable for their acts of omission or commission, without any special safeguards? Would you recommend any amendments to Article 311 of the Constitution, Section 197 of the Code of Criminal Procedure, Section 17 and 19 of the Prevention of Corruption Act, 1988 and various rules relating to conduct of Government servants and disciplinary proceedings?
There are enough rules and regulations to get rid of inefficient or disloyal govt. servants. They may be implemented following the due courses of law
Holidays
Kindly comment on the appropriateness of adopting a five-day week in Government offices when other sectors follow a six day week. Please also state whether the number of Gazetted holidays in Government offices should be reduced? Please also comment on the appropriateness of declaring Gazetted holidays for all major religious festivals.
(1) Existing procedure may continue. (2) Already suggested, training at the time of recruitment and periodical in service training will be sufficient.
