More pay commission guesswork

The Indian government has announced a 6% hike in dearness allowance for its employees. This will increase the salaries and pensions bill of the government by Rs. 3297.12 crore for one full year.

A quick calculation from the third pointer in the earlier post on pay commission guesswork. The government has 0.5% of GDP, i.e., Rs. 27,000 crore for the pay commission outgo for the whole year. If 6% of basic pay for all employees and pensioners equals Rs. 3300 crore, Rs 27,000 crore translates into a real increase of 49% of the basic pay. This calculation ignores the payment of any arrears from the outgo. If the arrears are also paid from this amount, the figure for actual increase may go down further. So, if you are a Flight Lieutenant with a basic salary of Rs.10,000 per month [excluding the DP and the DA], my estimated guess is that the maximum real increase is likely to be Rs 4,900 per month. Let me reiterate that this figure is educated guesswork, and this blogger would be much happier to see an even greater pay rise for the uniformed soldier.

If you are feeling dispirited or angry after ascertaining your “guesswork” pay hike, take solace in these words of wisdom from Michael Pritchard:

“No matter how rich you become, how famous or powerful, when you die the size of your funeral will still pretty much depend on the weather.”

Update[08 March]- Shishir Gupta, writing in the Indian Express about the Sixth Pay Commission, revisits a lot of ground covered at this blog.

Although civil and armed service officers make a case for salaries at par with the private sector employee, they do not realise that the latter risks the pink slip for both the bad decision taken and the good decision not taken. There is, therefore, a good case for introducing selectivity and merit in bureaucratic promotions. Why should only seniority and proximity to political power be the criterion for bureaucratic appointments? Even the British, who left India this legacy, have changed and started inviting private sector employees for key assignments through advertisements in the media.

In the present globalised and highly competitive environment, only nations with fast decision-making capabilities are likely to catch the opportunities for development and investment. Reform is urgently needed. Or the present system of spoils and political patronage in the garb of seniority could ensure the collapse of what Lord Nicholas Kaldor, Dr Singh’s teacher at Cambridge, 50 years ago referred to as the key decisionmakers of a nation.[IE]

21 Responses

  1. Final Pay Scales for Army Offrs out. Effective from 01 Oct 2007.
    Rank BP – Incr – Max
    Lt 30000-1000-45000
    Capt 34000-1200-48000
    Major 38000-1500-53000
    Lt Col/ Col TS 41000-1700-56000
    Col 47500-1850-59000
    Brig 51000-2000-63000
    Maj Gen 53000-2200-66000
    Lt Gen 56500-2400-68500
    Army Cdrs/VCOAS 57000-2100-70000
    COAS 72000 (Fixed)

  2. @Witto:

    Source please or else it is likely to be dismissed as a rumour.
    In any case, this could be [if true] the recommendation of the CPC. It is finally up to the Cabinet to take a call on this.

  3. @ Witto

    Thanks for bringing happiness to many for a microsecond. Incidentally CPC makes its recommendation on ‘Grades’ (or something similar) as applicable to civil services and not as per Army rank structure.

    What you have quoted is in line with most of the rumors doing the round. Unfortunately what you are forgetting is that the Armed Forces Personnel are put together in ‘blocks’. Finally what you will get is what the GC you trained at IMA will get.

    The ‘non pay’ part will get dictated by the top brass. They strongly believe that if they had to wait for donkey years to get such and such privilege, then how the hell can a youngster get it so early – I slaved; you bloody will!

  4. dear witto
    you know nothing about army

    an officer (only 20percent) becomes col at the service of 16/17 years and he bocome brig only after 24–26 years of service
    just see the payscale you have given
    how is it possible?

  5. Dear Pragmatic, I can’t give you the source as the document i have is still ‘classified’. Sorry. take it or leave it. I also have finally approved basic pay scales for JCO and OR’s.
    Thanks Vineet. This has approval of one of the senior pers in Fin. min. Lets hope it is final and no more changes.
    Dear kartik , I AM in army with 17 yrs service and still a lt col. you are only talking of arms and not services dear.
    I could have given you some more inputs but I cann’t back them up so let it go, like amt of mil service pay etc.

  6. @Witto:

    Another three weeks and your inputs would be either vindicated or railed against. Thanks anyways.

  7. DO YOU HAVE IT IN YOU?
    1. Would you like to join an organisation which you join at the age of 21-24 yrs and it tells you at your age of 38/41 years that now you are now unwanted in this org.(IT MEANS NO PROMOTION FOR 75-80 PERCENT of officers AFTER THIS )
    Not only this the org also tells you at your age of 44/45 that now you will not get any increase in your pay( PAY SCALE FOR Lt Col is 15100-400-18300 and it starts at the service of 13 years and reaches to its max at 21 years of service)
    then when you are 54 years of age it just throws you out.
    and this treatment is given to atleast 75 percent of you who join together.

    At the age of 45 why should you be forced to start looking for a new career. at the age of 22 only why do’nt you join an org which looks you after till your age of 60 years
    2. AND ON THE TOP OF ALL THIS YOU ARE NEVER TOLD ABOUT THE FACTS ABOVE before joining the org . BECAUSE ORG knows the repercussions
    3. In other services all the officers reach to the so called supertimescale after 16/17 years of service(18400—22400) In army the individual is finished at the service of 16/17 years(at least 70-75 percent of those who join)
    4. Now if army officer is not a class one officer why the fact is being hidden from the young boys they must be told about all these facts before joining. In fact it should be advertised properly so that all those who join inspite of knowing the fact they never leave army.

  8. in some other site

    it was mentrioned that for

    jt sec starting is 60000
    and for cab sec it is 80000

    you mean to say they have degraded
    a maj gen and coas this time

  9. @ Kartik:
    We are hopeful that AVS II will look into the prospects of senior offrs and promotions will be faster and more. Hopeful.
    There are lots of drawbacks in army as pointed out by you but at the same time life is still beautiful in army. Comrades in arms. I can go on talking about it for hrs but it is not that forum. I am a 3G army offr and i love this org. and who told you that army offrs are not cl 1 offrs !! my god !! Anyway, lets hope the pay scales are better than expected for ppl in this wonderful org.

  10. Hope they have not degraded the position of coas, as thought by you. lets see.

  11. @ witto
    who told you that army offrs are not cl 1 offrs !! my god !! Anyway, lets hope the pay scales are better than expected for ppl in this wonderful org.

    just because you are a 3G officer does it make you authority on army subject

    and moreover if you say army officer is a class I can you give a convincing reply for the question i have raised that only army officers (at least 75% of them)are sealed at the pay scale of 15100-18700 and all other class one officer(100% of them) go to minimum 16400–22400

    i tell you what is the exact problem. because every time the projection for pay scale is seen by the officers who are already General and and it is made by the officers who think they are General so both of them are not bothered about the other officers

  12. I am impressed with all this discussion about armed forces. I am part of it, but would love to get out immediately. The problem is-it is almost IMPOSSIBLE. Ask the guys who are fighting court cases. I feel like a bonded labour. I made the MISTAKE of joining,but will not let the same happen to my kids.It is FRUSTRATING, to say the least. Your basic rights have been taken away. Thanks guys, anyway.

  13. @ baron

    You would be further disappointed to know that very recently the Delhi court dismissed the petition (during 2005) of 3 IAF officers who petitioned against the denial of PMR.

    Unfortunately the top brass is yet to realise that such repressive policies are further going to dilute the quality of intake. While the ’seats can always be full’, what needs to be understood is that the people who will occupy those seats will be those who who were of no use to man or beast.

  14. Hey!
    Let’s just freak out on the rumours till the time the ‘Cat is out of the Bag!!!’ Anywayz where will you get 80 days off in a year plus other benefits? Just control ur Egos friends.

  15. its a nice discussion that is going on here . I have put in 1 year of service in army ….. and I must say iTs a WONDERFUL ORGANISATION …. One can be sad and unhappy in a corporate sector earning laks a month …So it can be anywhere.. Iam yet to meet a man who doesnt crib about his /her boss .. Army is no different NAD Army offiecrs are class 1 officers … Its the elite class.

  16. dear ronny
    just for few years. you are just born in army wait for the realities to come to you.
    best of luck to you

  17. ASDF/asdf

    Cynical are we?

  18. Army is good for those who are good & bad for those who are bad.Army is not a money making organization.The main problem with the army is internal rather than external..Since good people in enough numbers are not joining the army , bad decision making is affecting the army.Where does one find persons like Fd Marshal Cariappa. in the services.After retirement I have seen many army offciers cheating other army officers (serving & retired).Go and see how Narne estates (started by an army Col) is treating its members so far as East City in Hyderabad is concerned

  19. HEY
    Life never becomes bettter in the indian army.One step forward three steps backaward.
    nothing happens
    wives stay in SF ( SF lately changed to some other fancy name….blah)
    They get shitty houses in cariappa vihar….
    dripping laundry overhead
    railway cubicle …for bedrooms
    and of course sometimes the high and mighty come to look you up …..aka ….the MRS BIG BOSS
    and of course for the 3G ….Bhaiya abhi tak akal nahin aayi

    Sorry
    No takers
    where is the money
    where is the promotions???

  20. Interesting to see a posting about Narne. I see him and other defense personal working for him cheating other defense personal and civilians without boundaries. I had immense respect for people working for army prior to meeting these folks. I seriously think these guys must have sold our secrets to enemy when they were in service. How good is army looking into these issues? I hope someone can dig into their records

  21. can anyone educate others about this narne case