On the eve of country’s 61st Independence Day, the UPA government under the leadership of Prime Minister Manmohan Singh sanctioned a wage hike higher than the recommendations of Sixth Pay Commission for the country’s civil and defence staff.

After the meeting of the Union Cabinet chaired by the Prime Minister made the announcement that there would be an average increase of 21 per cent in salaries of over 50 lakh government employees with effect from January 1, 2006.

Briefing media persons information and broadcasting minister P.R. Dasmunsi said that the wage hike would increase the financial implication for the Centre by Rs 17,798 crore annually and the arrears with effect from January 2006 would cost Rs 29,373 crore.

The minimum entry level salary of a government has also been increased to Rs 7,000 as against proposed by the commission headed by Justice B.N. Srikrishna, who submitted the report in March this year. This means that the employee at the lowest level would have a salary that would be beyond Rs 10,000, including allowances. The rate of annual increment has also been hiked from 2.5 per cent to the 3 per cent by the government.

The government under the modified Assured Career Progression scheme has also approved at least three assured promotions for all defence forces personnel and civilian employees. While civilians would get this after 10, 20 and 30 years of service, defence forces jawans would be promoted under the ACP after 8, 16 and 24 years.

The salaries of the Brigadiers has also been increased as the government have agreed to put them in pay band 4 (Rs 39,200-67,000) as against the suggested pay band 3 (Rs 15,600 - 39,100). A separate pay scale for the DGPs, PCCFs, GM (Railways), members of the boards of income tax, customs and central excise, postal and ordnance factories among others have also been carved out.

As against the pay scale of Rs 24,050-26,000 the revised pay scale would take them to the level of Rs 80,000 in two years as against three years.