The federal government on Monday notified 15 – 20 per cent increase in salaries and pensions of all civilian employees with effect from July 1, after merging five temporary increments since 1999 into the basic pay scales. As a result, the basic pay scales have improved by about 65 per cent for lower grade employees and between 55 – 62 per cent for grade 17 to 22, although the monetary impact of such increases would not go up much because the employees were already getting these allowances in the name of ad hoc, dearness, relief or special allowances. After merger of allowances, the Basic Pay Scales-2008 would be replaced with BPS-2011. Besides the 15 per cent increase in salaries, the employees will also get substantial increases in allowance, including more than 300 per cent hike in ‘miscellaneous’ allowances. They will also get significant financial benefits in the form of point-to-point salary adjustments and retirement benefits, over and above the 15 per cent salary increase. For example, the starting basic salary of grade-22 will increase from Rs27,680 per month to Rs43,000 while the maximum basic pay will go up from Rs55,470 to Rs85,700 per month, a hike of 55 per cent. The annual increment for BPS-22 will increase from Rs1,985 to Rs3,050 per month. According to the notification, ad hoc allowance of 2010 at the rate of 50 per cent of the running basic pay shall stand frozen at the level of its admissibility as on June 30 this year and the same facility will be available to new entrants into government service. It said the ad hoc relief allowance 2011 at the rate of the running basic pay of BPS-2008 to all civil servants of the federal government and civilians paid out of defence estimates, including contingent paid staff and contract employees against civil posts, shall be allowed with effect from July 1, 2011. Medical allowance admissible to civil servants in BPS-16 to 22 at the rate of 15 per cent of existing basic pay in BPS-2008 shall continue to be paid at the frozen level of June 30, 2011. However, all special pays and allowances, including house rent, special allowance equal to one month of basic pay shall stand frozen at June 30, 2011. The conveyance allowance for all employees in scale 1 to 15 has been increased by 25 per cent. PENSION: The government also notified 15 per cent increase in net pension of employees who retired on or after July 1, 2002 and 20 per cent for those retired before that date. The 15 per cent increase will also be applicable to those retiring after July 1, 2011.
By: Dawn News