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Big jump in perks across the board

business Updated: Mar 24, 2008 21:52 IST
Pay commision

The pay commission has proposed that the existing rates of most of the allowances be doubled for the defence forces as well as civilian employees. Women employees have been given the benefit of staggered working hours, special leave for child care, enhanced maternity leave of 180 days and better accommodation in the form of working women’s hostels.

While proposing continuation of a five-day week, it has been suggested that government offices should remain closed only on three national holidays. All other gazetted holidays should be abolished and compensated by increasing the number of restricted holidays from two to 8 days in a year.

The panel has also proposed a liberal severance package for employees leaving service between 15 and 20 years of work.

Significantly, the commission has suggested the formulation of a separate of consumer price index for government employees for computing dearness allowance and has favoured paying travel entitlements on actual costs. A person stagnating at the maximum of any pay band for more than one year continuously will be placed in the higher pay band.

While retaining the existing rates of house rent allowance for A-1 cities, the allowance for A, B-1 and B-2 cities will be at the rate of 20 per cent and C/ unclassified cities it will be 10 per cent.

City compensatory allowance is to be subsumed in transport allowance and the rates have been increased by four times. “Rates of education allowance reimbursement to be raised from Rs. 50 to Rs. 1,000 per child per month, subject to a maximum of two children,” the report states. The hostel subsidy is to be raised from Rs. 300 per month to Rs. 3,000.

A new medical insurance scheme has been recommended for government employees. The scheme has been made optional for existing central government employees, but new staff and pensioners will be compulsorily covered by the scheme.