Download 10th PRC Report, One of the terms of reference fixed for the PRC is to examine, as to what extent the existing Dearness Allowance may be merged in the pay as to evolve consequent new set of pay scales merging Dearness Allowance therein and suggest the mode of pay in the revised pay scales. Regarding the merger of Dearness Allowance with the basic pay, the issue has been discussed in the earlier chapter.
The revised scales are worked out based on merger of Dearness Allowance with Basic pay and fixation of minimum pay based on certain accepted principles which are discussed earlier.
The new master scale is evolved by arriving at the minimum of the scale and the maximum of scale and working out reasonable increments at various stages between.
An important aspect of Revised Pay Scales is the ‘Fitment’ formula for determining the pay of existing employees in the Revised Pay Scales, to confer reasonable monetary benefit on the employees.
The 1978 Pay Revision Commission recommended for weightage of one increment for every 3 years of service, based on the service rendered by the employees.
In subsequent revisions of 1986, 1993, 1999, 2005, 2010 the Commission preferred fixation of a uniform percentage as the criteria for fitment in the Revised Pay Scales as it will spread the advantage evenly for all employees. While recommending the new pay scales, the successive PRCs also took into consideration the financial position of the State Government.
Major Associations have now represented for percentage of fitment on Basic pay ranging from 40% ‐ 60%. Some of the Associations have represented for service weightage as fitment for determining the pay scales.
The Telangana Gazetted Officers Central Association in their representation has stated that during the period from 1.7.2008 to 31.7.2013, the accumulated inflation had increased to 104.9% where as the Dearness Allowance sanctioned to State Government employee was just 63.344% and as such there was a loss of more 41.596%.
There was another loss of 27.504% in the calculation of Dearness Allowance as it was based on the basket of family living survey conducted in the year 1999‐2000 and since them the consumption basket had totally changed and thus the quantum of fitment of 69.10% was essential for the employees to have a comfortable living without financial hardship.
The A.P. Non‐Gazettted Officers Association in their representation has sought for a fitment of 69% on Basic pay on the basis of difference in the rate of inflation between 2012‐13 and 2013‐14, using the following formula.
i) D.A.as on 1.1.2013 = 54.784%
ii) Fitment required = Difference in inflation X D.A on 1.1.2013
Average inflation in 2012‐13
1.305/10.43 X 54.784 = 68.54 or 69%
The Progressive Recognized Teachers Union, AP(PRTU) in their memorandum has requested for a fitment of 60% on Basic pay by calculating a rise of 58% in the consumer price index from July, 2008 to February, 2013.
The Government Junior Lecturers Association in their representation has requested for a fitment of 69% on Basic pay by calculating a) a loss of 25% to the employees due to a difference between the accumulated inflation and the Dearness Allowance sanctioned and b) a change in the consumption basket of employees requiring addition of another 43% in Dearness Allowance to fully nullify the existing inflation.
It is evident from the representation of employees associations that in deciding the percentage of fitment two important factors have to kept in mind viz a) increase in the prices of consumer items and b) change in the consumption pattern and addition of new items of expenditure.
While working out the Minimum Pay, the Commission has taken both these factors into account. The price of food and clothing are taken on the basis of market rates prevailing as on 1.7.2013.
Additional expenditure of 10% of total expenditure on food and clothing and other miscellaneous items is now incorporated in the Minimum Pay to also provide for new items of expenditure and changing pattern of consumption.
Minimum Pay now fixed is, in our view, a realistic assessment of the money that will be required by an employee of initial cadre to maintain himself and his family in reasonable comfort and with due dignity.
Keeping in view the raise in the quantum of minimum pay, the Commission recommends a fitment of 29% on Basic Pay. The Commission further recommends that the fitment in the revised scale may be made in the following manner:
(1) D.A. admissible as on 01/07/2013 i.e., 63.344% may be added to the Basic pay.
(2) 29% of the basic pay may be added to the total of Basic pay + D.A. arrived at (1) above;
(3) The pay of the employees should be fixed in the relevant revised scale at the stage next above the amount arrived at as at (2) above;
(4) If an employee’s pay when fixed as above falls short of the minimum in the revised pay scale, it shall be fixed at the minimum of the scale;
(5) If the amount so fixed exceeds the maximum, the excess shall be treated as personal pay and it should be absorbed in future pay increases or in the stagnation increments sanctioned.
The Commission recommends that the revised pay scales should come into force from 1.7.2013. As regards giving monetary benefit we deem it appropriate to leave the date from which it would come into effect to the Government keeping in view its resource position and the demands on those resources.
|10th PRC Volumes||Andhra Pradesh||Telangana State|
|10th PRC Volume I Book 2014 Master Scale Details on Page No.28,29,30 and 31||Download||Download|
|10th PRC Volume II – 1 Book 2014||Download||Download|
|10th PRC Volume II – 2 Book 2014||Download||Download|
|10th PRC Volume III Book 2014||Download||Download|
|10th PRC Volume IV Book 2014||Download||Download|
|10th PRC Volume V Book 2014 Non Teaching Staff of Universities||Download||Download|