Gazette Notification of Sixth Pay Commission Released

On 29th August 2008 the Sixth Central Pay Commission has finally been notified by the government.

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With this a long wait comes to an end. Congratulations to all concerned.

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6th Pay Commission delayed till 2010?

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The government may defer the implementation of the Sixth Pay Commission award by a year or even two to reduce the fiscal burden of the recommendations that proposed a 28 per cent across-the-board salary increase for an estimated 4.5 million central government employees.

In Budget 2008-09, the finance ministry has estimated the fiscal deficit at 2.5 per cent of GDP, which is in line with the Fiscal Responsibility and Budget Management Act, 2003. This included headroom for the likely impact of the Pay Commission award.

However, subsequent developments have led to the fear that the Centre’s fiscal position may have taken a beating during the year on account of the farm loan relief package and higher crude oil prices leading to an increase in the subsidy burden.

A final decision could be taken as early as next month, well before six states head for elections to their legislatures.