KARNATAKA STATE PAY COMMISSION REPORT : PAY STRUCTURE RECOMMENDATIONS…

7.1 Government of Karnataka has been evolving its own pay structure for employees, based on the recommendations of the State Pay Commissions and Committees in the past.  The general recommendation has been to continue with this basic system, while effecting improvements from time to time.  In particular, adoption of Central Pay Scales has not been favoured because of fundamental differences in the conditions of service, designations, eligibility criteria, mode of recruitment, duties and jurisdictions.

7.2 The popular impression that more and more states have adopted the ‘Central Scales’ does not appear to be true on closer scrutiny of the pay scales and allowances.  Most of the states which appear to have adopted the Government of India pay structure have not given parity in case of a large number of posts.  For example, the categories like Second Division Assistant, Primary School Teachers, Secondary School Teachers, Assistant Engineers have not been given the same pay and grade pay as in the case of Government of India.  While Group-D posts have been abolished in Government of India, States have retained these posts.

7.3 In the matter of allowances also, there are variations.  While some states like Maharashtra and Punjab have given HRA/Transport Allowance at the Central rates, Gujarat has adopted a different rate of Transport Allowance.  As per the HRA slabs in Tamil Nadu, for example, employees of Group-D and Group-A are eligible for Rs. 560 p.m and Rs. 2,600 p.m. respectively only in Chennai whereas it is 25% of Basic in Bangalore.  Kerala has also adopted a different HRA pattern.

7.4 Another important factor to be noted is the index level which a particular State or Central Government takes as base for revising scales and merger of DA.  The States of Andhra Pradesh and Kerala which have been revising pay scales of employees once in five years have adopted their own pay structure at different index levels.  State and Central Governments have got different frequencies of pay-revision.  The Government of India, for example, has appointed five Pay Commissions in the last five decades, whereas the Government of Karnataka during the same period has appointed five Pay Commissions and four Pay Committees.  Thus the apparent difference in pay scales at any given point of time needs to be seen in the perspective of differing frequencies of pay-revision.

7.5 Economic conditions of a State, the need of resources for development of infrastructure and building human capital, and finally, the fiscal capacity have to guide decision-making on the matters of pay-revision.  The previous Pay Commissions and Committees have also gone into this fundamental issue of ‘the capacity to pay’.  The Terms of Reference of the present Official Pay Committee also clearly prescribe that the recommendations should be made keeping in view the resources of the State Government and Government commitments for various development programmes and other statutory and regulatory functions within the overall mandate of the Karnataka Fiscal Responsibility Act, 2002.

7.6 The current structure of pay scales and allowances are based on the recommendations of the Fifth State Pay Commission with effect from 1.7.2005.  The pay scales had then been revised linking with the cost of living index as represented by the average of 524 points in the AIACPI numbers for industrial workers (General Base 1982=100).  There are at present 25 scales of pay with a Master Scale.

7.7 After taking into account the relevant facts and financial implications, the Committee recommends as follows.

1. The Government of Karnataka shall continue to retain its own pay structure for its employees.

2. The concept of Master Scale with 91 stages are to be retained.

3. To retain the existing 25 standard scale segments from the Master Scale.

4. To retain the existing 16 increment stages. The existing  increment rates increased from Rs.100 – 850 to Rs. 200 – 1700 respectively.

5. The existing vertical and horizontal relativities among the existing pay scales have been retained.

6. To give 22.5% of basic pay as Fitment Benefit while fixing the pay in the revised scales of pay. The Fitment Benefit includes 15% of Interim Relief
sanctioned w.e.f. 1.11.2011.

7. To merge the DA as on 01.01.2012 at the index level of 191.5 points in the new pay structure recommended by it.

8. The existing minimum pay of Rs.4800/- is increased to Rs. 9600/- and the maximum pay of Rs. 39,900/- is revised to Rs. 79800/-. The revised pay would include 76.75% DA as of 01.01.2012 at the index level of 191.5 points (Base:2001=100).

9. The recommended Master Scale and 25 Pay Scales corresponding to the existing Master Scale and pay scales are as follows:

Existing	Recommended
1. Master Scale	1. Master Scale
4800-100-6000-125-6500-150-7100-175-7800- 200-8600-225-9500-250-10500-300-12300- 350-14400-400-16800-450-19500-525- 22650-600-26250-675-30300-750-34800- 850-39900 Minimum-4800; Maximum-39900 Number of Pay Stages-91	9600-200-12000-250-13000-300-14200- 350-15600-400-17200-450-19000-500- 21000-600-24600-700-28800-800-33600- 900-39000-1050-45300-1200-52500- 1350-60600-1500-69600-1700-79800 Minimum-9600; Maximum-79800 Number of Pay Stages-91
2. Annual Increment Rate 100,125,150,175,200,225,250,300,350, 400,450,525,600,675,750,850	2. Annual Increment Rate 200,250,300,350,400,450,500,600,700, 800,900,1050,1200,1350,1500,1700
3. Pay stages of Increment rates 4800,6000,6500,7100,7800,8600,9500, 10500,12300,14400,16800,19500,22650, 26250,30300,34800, 39900	3. Pay stages of Increment rates 9600,12000,13000,14200,15600,17200, 19000,21000,24600,28800,33600,39000, 45300,52500,60600,69600,79800
4. Minimum and Maximum                                  1:8.31	4. Minimum and Maximum                            1:8.31

Existing and Recommended Pay Scales 

Sl.No.	Existing Pay Scales	Span	Sl.No.	Recommended Pay Scales	Span
1	4800-100-6000-125-6500-150-7100-175-7275	21	1	9600-200-12000-250-13000-300- 14200-350-14550	21
2	5200-100-6000-125-6500-150-7100-175-7800-200-8200	22	2	10400-200-12000-250-13000-300- 14200-350-15600-400-16400	22
3	5500-100-6000-125-6500-150-7100-175-7800-200-8600-225-9500	25	3	11000-200-12000-250-13000-300- 14200-350-15600-400-17200-450-19000	25
4	5800-100-6000-125-6500-150-7100-175-7800-200-8600-225-9500-250-10500	26	4	11600-200-12000-250-13000-300- 14200-350-15600-400-17200-450-19000-500-21000	26
5	6250-125-6500-150-7100-175-7800-200-8600-225-9500-250-10500-300-12000	27	5	12500-250-13000-300-14200-350- 15600-400-17200-450-19000-500-21000-600-24000	27
6	6800-150-7100-175-7800-200-8600-225-9500-250-10500-300-12300-350-13000	26	6	13600-300-14200-350-15600-400- 17200-450-19000-500-21000-600-24600-700-26000	26
7	7275-175-7800-200-8600-225-9500-250-10500-300-12300-350-13350	24	7	14550-350-15600-400-17200-450- 19000-500-21000-600-24600-700-26700	24
8	8000-200-8600-225-9500-250-10500-300-12300-350-14400-400-14800	24	8	16000-400-17200-450-19000-500- 21000-600-24600-700-28800-800-29600	24
9	8825-225-9500-250-10500-300-12300-350-14400-400-16000	23	9	17650-450-19000-500-21000-600-24600-700-28800-800-32000	23
10	9500-250-10500-300-12300-350-14400-400-16800-450-17250	23	10	19000-500-21000-600-24600-700- 28800-800-33600-900-34500	23
11	10000-250-10500-300-12300-350-14400-400-16800-450-18150	23	11	20000-500-21000-600-24600-700- 28800-800-33600-900-36300	23
12	10800-300-12300-350-14400-400-16800-450-19500-525-20025	24	12	21600-600-24600-700-28800-800- 33600-900-39000-1050-40050	24
13	11400-300-12300-350-14400-400- 16800-450-19500-525-21600	25	13	22800-600-24600-700-28800-800- 33600-900-39000-1050-43200	25
14	12000-300-12300-350-14400-400-16800-450-19500-525-22650	25	14	24000-600-24600-700-28800-800- 33600-900-39000-1050-45300	25
15	13000-350-14400-400-16800-450-19500-525-22650-600-23850	24	15	26000-700-28800-800-33600-900- 39000-1050-45300-1200-47700	24
16	14050-350-14400-400-16800-450-19500-525-22650-600-25050	23	16	28100-700-28800-800-33600-900- 39000-1050-45300-1200-50100	23
17	15200-400-16800-450-19500-525-22650-600-25650	21	17	30400-800-33600-900-39000-1050- 45300-1200-51300	21
18	16400-400-16800-450-19500-525-22650-600-26250	19	18	32800-800-33600-900-39000-1050- 45300-1200-52500	19
19	18150-450-19500-525-22650-600-26250-675-26925	16	19	36300-900-39000-1050-45300- 1200-52500-1350-53850	16
20	19050-450-19500-525-22650-600-26250-675-27600	15	20	38100-900-39000-1050-45300- 1200-52500-1350-55200	15
21	20025-525-22650-600-26250-675-28275	14	21	40050-1050-45300-1200-52500-1350- 56550	14
22	22125-525-22650-600-26250-675-30300	13	22	44250-1050-45300-1200-52500-1350-60600	13
23	24450-600-26250-675-30300-750-31800	11	23	48900-1200-52500-1350-60600-1500-63600	11
24	26250-675-30300-750-34800-850-36500	14	24	52500-1350-60600-1500-69600-1700- 73000	14
25	28275-675-30300-750-34800-850-39900	15	25	56550-1350-60600-1500-69600-1700-79800	15

AN OVERVIEW OF RETIREMENT BENIFITS TO CENTRAL GOVERNMENT SERVANTS

Let’s have a look at the retirement benefits for a central government emplyee. These benefits are also applicable for an employee who intends to quit

Pension

The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive superannuation pension on completion of at least 10 years of qualifying service.

In the case of Family Pension the widow is eligible to receive pension on death of her spouse after completion of one year of continuous service or before even completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.

W.e.f 1.1.2006, Pension is calculated with reference to average emoluments namely, the average of the basic pay drawn during the last 10 months of the service or last basic pay drawn whichever is beneficial. Full pension with 20 years of qualifying service (10 years in special cases) is 50% of the average emoluments or last basic pay drawn whichever is beneficial.

Minimum pension presently is Rs. 3500 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 45,000) per month. Pension is payable up to and including the date of death.

Commutation of Pension

A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment with effect from 1.1.1996. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under go medical examination by the specified competent authority.

Lump sum payable is calculated with reference to the Commutation Table constructed on an actuarial basis.  The monthly pension will stand reduced by the portion commuted and the commuted portion will be restored on the expiry of 15 years from the date of receipt of the commuted value of pension. Dearness Relief, however, will continue to be calculated on the basis of the original pension (i.e. without reduction of commuted portion).

The formula for arriving for commuted value of Pension (CVP) is

CVP = 40 % (X) Commutation factor* (X)12

Death/Retirement Gratuity

Retirement Gratuity

This is payable to the retiring Government servant. A minimum of 5 years qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a month’s Basic Pay plus Dearness Allowance drawn before retirement for each completed six monthly period of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable is 16½ times the Basic Pay, subject to a maximum of Rs. 10 lakhs.

Death Gratuity

This is a one-time lump sum benefit payable to the widow/widower or the nominee of a permanent or a quasi-permanent or a temporary Government servant, including CPF beneficiaries, dying in harness. There is no stipulation in regard to any minimum length of service rendered by the deceased employee. Entitlement of death gratuity is regulated as under:

Qualifying Service	Rate
Less than one year	2 times of basic pay
One year or more but less than 5 years	6 times of basic pay
5 years or more but less than 20 years	12 times of basic pay
20 years of more	Half of emoluments for every completed 6 monthly period of qualifying service subject to a maximum of 33 times of emoluments.

Maximum amount of Death Gratuity admissible is Rs. 10 lakhs w.e.f. 1.1.2006

Service Gratuity

A retiring Government servant will be entitled to receive service gratuity (and not pension) if total qualifying service is less than 10 years. Admissible amount is half month’s basic pay last drawn for each completed 6 monthly period of qualifying service. There is no minimum or maximum monetary limit on the quantum. This one time lump sum payment is distinct from and is paid over and above the retirement gratuity.

General Provident Fund and Incentives (For employees joined Government Service before 1.1.2004)

As per General Provident Fund (Central Services) Rules, 1960, all temporary Government servants after a continuous service of one year, all re-employed pensioners (Other than those eligible for admission to the Contributory Provident Fund) and all permanent Government servants are eligible to subscribe to the Fund. A subscriber, at the time of joining the fund is required to make a nomination, in the prescribed form, conferring on one or more persons the right to receive the amount that may stand to his credit in the fund in the event of his death, before that amount has become payable or having become payable has not been paid. A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension. Subscriptions to the Provident Fund are stopped 3 months prior to the date of superannuation. Rates of subscription shall not be less than 6% of subscriber’s emoluments and not more than his total emoluments. Rate of interest on GPF accumulations with effect from 1.4.2009 is 8% compounded annually and the rate of interest will vary according to notifications of the Government. The Rules provide for drawal of advances/ withdrawals from the Fund for specific purposes.

Deposit Linked Insurance Revised Scheme

Under the GPF Rules, on the death of subscriber, the person entitled to receive the amount standing to the credit of the subscriber shall be paid an additional amount equal to the average balance in the account during the 3 years immediately preceding the death of the subscriber subject to certain conditions provided in the relevant Rule. The additional amount payable under that Rule shall not exceed Rs. 60,000/-. To get this benefit, the subscriber should have put in at least 5 years service at the time of his/her death.

Contributory Provident Fund

The Contributory Provident Fund Rules (India), ,1962 are applicable to every non-pensionable servant of the Government belonging to any of the services under the control of the President. A subscriber, at the time of joining the Fund is required to make a nomination in the prescribed Form conferring on one or more persons the right to receive the amount that may stand to his credit in the Fund in the event of his death, before that amount has become payable or having become payable has not been paid.

A subscriber shall subscribe monthly to the Fund when on duty or Foreign Service but not during the period of suspension. Rates of subscription shall not be less than 10% of the emoluments and not more than his emoluments. The employer’s contribution at that percentage prescribed by the Government will be credited to the subscriber’s account and this is 10%. Rate of interest with effect from 1.4.2009 is 8% compounded annually. The Rules provide for drawal of advances/ withdrawals from the CPF for specific purposes. As in GPF Rules, the CPF Rules also provide for Deposit Linked Insurance Revised Scheme.

Leave Encashment

Encashment of leave is a benefit granted under the CCS (Leave) Rules and not a pensionary benefit. Encashment of Earned Leave/Half Pay Leave standing at the credit of the retiring Government servant is admissible on the date of retirement subject to a maximum of 300 days. There is no provision under the Rule for payment of interest on delayed payment of Leave Encashment.

Central Government Employees Group Insurance Scheme

A portion of monthly contributions paid while in service is credited in a Saving Fund, on which interest accrues. A Government servant while entering service has to apply in Form No. 4 of the above Scheme to the Head of Office, who shall issue a sanction for the payment of subscriber’s accumulation in the Savings Fund segment together with interest and arrange for its disbursement, soon after retirement. Payments under this Scheme are made in accordance with the Table of Benefit which takes in to account interest up to the date of cessation of service. Insurance cover benefit under this Scheme is available to the family in the event of death of the subscriber. No interest is payable on account of delayed payments under this Scheme.

Guidelines for submitting leave application and for proceeding on leave

 A large number of discrepancies and irregularities were noticed among the staffs in submitting their leave application and in availing the leave. Therefore all the staffs are instructed to follow the guidelines given below:

Submission of leave application:

01.  Leave application along with the recommendations in SR1 form may be submitted through concerned Postmasters, well in advance.

02.  Postmaster will furnish ‘EC’ and forward all the leave letters with SR1 to this office immediately. Leave letters received without SR1 or without ‘EC’ will not be considered by this office.

03.   Leave address must be mentioned in the SR1 form and the necessary charge reports/MC/Fitness may be forwarded in due course without fail. Non receipt/ belated submission will be viewed seriously.

04.   MC should be obtained only from the AMA (Authorised Medical Attendant) as per the Rule-19(ii) of CCS leave rules.  MC obtained from any other than AMA will not be considered and it will be rejected by this office.

Proceeding on leave:

01.   The HPMs/SPMs should not relieve the officials without proper grant of leave or prior permission from the leave sanctioning authority.

02.  Extension of leave, if any, required the leave application must reach this office before the expiry of previous leave spell.

03.   Availing CL and producing MC or proceeding on leave without proper grant from the Competent Authority is highly irregular and it is against the Rule-19(5) of CCS Leave Rules. If any such practices noticed it will be viewed very seriously and it is liable to initiate any kind of disciplinary proceedings against the concerned official.

      The contents of this letter should be brought to the notice of all the officials working in your office including those who are on leave/deputation/training under proper acquittance.

Revised Train Fares for Journey in AC-First Class, AC-2 Tier, Executive Class & First Class from Tomorrow

The Ministry of Railways has revised passenger fares with effect from tomorrow i.e. 1st April 2012 in AC-First Class, AC-2 tier, Executive Class and First Class only. There is no revision in other classes of travel. The revised fares in these classes would be applicable to all types of trains on Indian Railways network. 

The revised fares will also apply to tickets issued in advance for journeys to commence on or after 1st April 2012. In the case of tickets already issued at pre-revised rates, the difference in fares from 1st April 2012 will be recovered from passengers either by TTEs in the trains or by the booking offices before commencement of the journey by the passengers as per the usual practice in case of such fare revisions.

The revised list of fares for the information of the public is being displayed at the stations and has been made available to the railway staff well in time. The revised passenger fare table is also available on the website of the Ministry of Railways i.e. indianrailways.gov.in