In a pre-election bonanza to 16 lakh employees in government schools, the government’s pay parity committee has advised payment of allowances as per the Sixth Pay Commission recommendations.
This will include the city compensatory allowance and house rent allowance and the revised pay scale will come into force from December 1.
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This is the first time that state employees will be paid allowances on the Central scale, causing an annual burden of Rs 1,500 crore on the state exchequer.
The committee, headed by SAT Rizvi, was constituted in August by the state government to suggest measures for the implementation of the pay panel recommendations. It was to submit its report within three months.
Alok Ranjan, principal secretary of urban development and a member of the committee, said the committee has finalised its report, which will be presented to Chief Minister Mayawati when she returns from her campaign tour.
The committee has, however, made no recommendations regarding arrears and pension, which is likely to be announced during the presentation of the budget in February.
The arrears and pensions for the period of January 2006 to November 2008 would entail a one-time additional expenditure of Rs 14,775 crore. The salary arrears amount to Rs 11,051 crore and Rs 3,724 crore for pension.
The implementation will be done with retrospective effect from January 1, 2006. The additional expenditure will be Rs 5,189 crore annually, which includes Rs 3,789 crore on account of salary and Rs 1,400 crore for pension.
Welfare and development schemes are expected to suffer in consequence.
As an immediate measure, the state government has decided to cut down non-plan expenditure by five per cent, ensure effective measures to check tax evasion and mobilise additional resources.
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In August, Mayawati had announced the government’s in-principle decision to implement the sixth pay panel recommendations.
But the new pay scale was to contain only the revised salary and dearness allowance. The change of stance came following strong protest by the employees’ unions.
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