PRC recommends 7.5% fitment for employees

In its report submitted to the Telangana government recently, the PRC recommended a minimum pay of ₹19,000. File photo for representational purpose only.  

The Pay Revision Commission, the first one constituted after the formation of Telangana, has recommended a fitment of 7.5% for employees at different levels, much to their disappointment. Now, employees have submitted representations seeking 65% fitment.

PRC recommends 7.5% fitment for employees

In its report submitted to the government recently, the PRC recommended a minimum pay of ₹19,000. The 7.5% fitment should be added to the total basic pay and to this, the dearness allowance admissible as on July 1, 2018, estimated at 30.39% should be added. The PRC cited the financial constraints faced by the State as the reason behind considering the 7.5% fitment.

The commission, however, said that the revised pay scales should come into force from July 1, 2018, much to the relief of employees who can now expect arrears. The PRC recommended enhancement of retirement age from the existing 58 to 60 years.

The commission said that the previous PRC had recommended a minimum pay of ₹13,000, which in effect was revised to ₹13,825 due to enhancement of fitment from 29% to 43%. The minimum pay has now been revised to ₹19,000 (₹13,825 + DA 30.392% + fitment 7.5%).

Employees’ salaries should be fixed based on the relevant revised scale at the next stage, the commission said, adding that if an employee’s pay when fixed falls short of the minimum in the revised scale, it should be fixed at the minimum scale. If the amount fixed exceeds that, the excess should be treated as personal pay and should be absorbed in future pay increases or in the stagnation of increments sanctioned.

The commission said it retained the master scale concept with 32 grades and 80 segments. The new scale was evolved by merging DA with basic pay as on July 1, 2018. The maximum pay in the master scale was worked out to ₹1,62,070 a month representing the minimum maximum ratio of 1:8.53.

The master scale had been formulated with an annual increment to range from 3.36% of the pay in the initial stages to 2.33% finally and the periodicity of the increase in increment would be at three years. The commission said the government could take a view on the date from which the financial benefit would accrue keeping in view its resource position and the various demands thereon.

The existing practice of sanctioning DA twice a year should continue and the commission recommended conversion factor of 0.91% for sanction of DA with effect from January 1, 2019. This would mean that for every 1% increase in DA sanctioned by the Central government, the DA sanctioned to State government employees would be 0.91%.

The PRC however, revised the house rent allowance, dropping the existing rates of 30%, 20%, 14.5% and 12% in different parts of the State based on population to 24%, 17%, 13% and 11% respectively. And, it said this had been done keeping in view the seventh Central Pay Commission recommendations. Additional HRA in lieu of rent free accommodation had been retained at 8% basic pay, but the monetary ceiling should be increased from ₹2,000 to ₹2,500.

It also recommended streamlining the cashless treatment under employees’ health scheme by collecting 1% of basic pay from employees and 1% of basic pension from pensioners and creating a separate reserve as in the case of Aarogya Bhadrata. The expenditure should be met from the reserve initially and the same should be recouped from the reimbursement by the government.

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Printable version | Mar 9, 2021 3:37:47 AM |

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