OFFICIAL PAY COMMITTEE REPORT

THE OFFICIAL PAY COMMITTEE REPORT HAS BEEN PUBLISHED ON THE WEB

http://www.kar.nic.in/finance

http://www.finance.kar.nic.in

Kannada Recommendations

SUMMARY OF RECOMMENDATIONS

The Official Pay Committee constituted in June 2011 by Government of Karnataka to go into the pay revision of its employees has examined and considered the demands of various employees’ associations as well as heard the representatives of those associations. Various issues relating to existing as well as proposed revision of pay structure, master scale, pay scales, D.A. formula, allowances and pensionary benefits in comparision with employees of Government of India and neighbouring states have been examined and discussed in detail. The Committee has also analysed the impact of pay revision on the State Government’s fiscal position considering the State Government’s commitment for plan, non-plan expenditure, developmental and other programmes.

Keeping all the above in view, the recommendations of the Committee are summarised as follows.

1.1 Revised Pay Structure & Pay Scales

(i) The State should continue to have its own Pay Structure for its employees.

(ii) The new Pay Structure is related to the index level of 191.5 points obtainable on 1.1.2012 (base 2001=100).

(iii) The concept of Master Scale with 91 stages are retained.

(iv) The Fitment Benefit is 22.5 per cent inclusive of 15 per cent Interim Relief.

(v) To retain the existing 25 standard scales, segments from the Master Scale.

(vi) The new pay structure includes the Dearness Allowance as on 1.1.2012 at the index level of 191.5 points.

(vii) The revised Pay Scales, Allowances and Pensions are effective from 1.4.2012.

(viii) To revise the Minimum pay scale from Rs.4800-7275 to Rs.9600-14550.

(ix) To revise the Maximum pay scale from Rs.28275-39900 to Rs.56550-79800.

(x) The existing rates of increments have been doubled.

(xi) The new pay shall be fixed w.e.f. 1.4.2012 as follows.

1) Basic Pay as on 1.4.2012

2) DA of 76.75 per cent as on 1.1.2012

3) Fitment benefit of 22.5 per cent of basic pay inclusive of 15 per cent Interim Relief.

(xii) The DA from 1.7.2012 is to be allowed with multiplication factor of 0.604 for

every 1 per cent of DA sanctioned by Government of India.

1.2 Allowances, Special Allowance & Other Benefits

These are recommended to be implemented with effect from 1.4.2012.

Part 1 Allowances

(i) For purposes of HRA, classification of cities/ towns /other places reduced from six groups to four groups. The minimum rate of HRA increased from 6 per cent to 7 per cent. Rural allowance of Rs.100 is removed.

(ii) The existing rates of CCA is increased from Rs.80 - 300 to Rs. 250 - 400 per month.

(iii) The rate of Medical Allowance for group C & D employees is increased from Rs.50 per month to Rs.100 per month.

(iv) The existing rate of Conveyance Allowance is increased from Rs.100 – 400 to Rs.200 - 600.

(v) Rates of Road Mileage, Daily Allowance, Special Daily Allowance, Transfer grant hiked substantially.

(vi) The existing rates of FTA is increased from Rs.150 - 700 to Rs.225 - 750.

(vii) Out of State Allowance to be 25 per cent in the revised pay scale for the officials working in Delhi and 10 per cent of the revised pay scale for officials working in Varanasi, Thirumala, Srisailam and other offices located outside the state.

(viii) Rate of Charge Allowance enhanced from 5 per cent to 7.5 per cent in the revised pay scale and the ceiling limit of Rs.1000 removed.

(ix) Rates of Hill Station Allowance are revised from Rs.150 - 250 to Rs.200 – 300 per month.

(x) The rates of Initial Grant, Renewal Grant, Maintenance Allowance under Uniform Allowance increased substantially.

Part 2 Special Allowance

(i) The rates of Special Allowance to about 380 cadres enhanced.

(ii) Special Allowance ranging from Rs.100 to Rs.300 per month for Veterinary Officers, Veterinary Inspectors, Veterinary Assistants, Deputy Range Forest Officers, Forest Guards, Forest Watchers, Cooks and Pourakarmikas is suggested.

(iii) Special Allowance revised from Rs.200 to Rs. 500 per month to Lecturers in P.U. Colleges.

Part 3 Other Benefits

(i) The limit on accumulation of Earned Leave enhanced from 240 days to 300 days. Maximum limit of Earned Leave that can be encashed at the time of retirement enhanced from 240 days to 300 days.

 (ii) Encashment of Earned Leave upto 15 days every year.

(iii) Leave Travel Concession to be granted twice during the service

(iv) Period of Maternity Leave to be increased from the existing 135 days to 180 days.

(v) Government servants stagnating in the same post without promotion for 25 years to get additional increment and those stagnating without promotion for 30 years and above, to get one more additional increment.

(vi) The number of stagnation increments increased from the existing five to eight.

Part 4 Loans and Advances

The amount of loans and advances to be revised as follows:

(i) Advance for House Building and House Purchase from Rs. 5.00 lakh to Rs.15.00 lakh.

(ii) Advance for purchase Motor Car from Rs.2.50 lakh to Rs. 3.00 lakhs

(iii) Advance for purchase of Motor Cycle / Scooter form Rs. 30,000 to Rs. 50,000.

(iv) Advance for purchase of Computer from Rs. 35,000 to 40,000.

(v) Festival Advance from Rs.3,500 to Rs. 5,000.

(vi) Advance for purchase of Bicycle from Rs. 2,000 to Rs. 3,000.

Part 5 Benefits for the Persons with Disabilities

(i) Conveyance Allowance to employees with locomotor disability and blindness to be 6 per cent in the revised pay scale and the ceiling limit of Rs.400 to be removed.

(ii) Government to reimburse 25 per cent of the cost, subject to a maximum of Rs.25,000 of the motorised / mechanical vehicles purchased by the Government servants with disabilities once in their service.

(iii) Children Education Allowance for two disabled children of employees at Rs.500 per month.

(iv) With a view to enable Government servants to bring up two children with disabilities who are unable to go to school, allowance of Rs.500 per month.

(v) Flexi-hours for Government servants with disabilities.

1.3 Retirement Benefits

(i) Minimum and maximum pension to be Rs. 4,800 per month and Rs.39,900 per month respectively.

(ii) Minimum and maximum family pension to be Rs.4,800 per month and Rs.23,940 per month respectively.

(iii) Pension / Family pension of past retirees to be calculated by adding to basic pension/family pension as on 1.4.2012, DA at 76.75 per cent and fitment benefit of 22.5 per cent subject to a minimum of Rs.4,800 per month.

(iv) The ceiling limit on DCRG is raised from Rs. 6.00 lakh to Rs. 10.00 lakh.

1.4 Other Issues

(i) The Committee has made several recommendations with regard to restructuring of the staff in the State Government.

(ii) The Committee recommends for introducing five day work week.

1.5 Financial Implication

The additional financial implication per year on account of revision of Pay and Allowances of the employees of State Government, Aided Educational Institutions and Local Bodies and Non-teaching Staff of Universities and Pensioners is estimated to be Rs.4450 crore


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