NEW DELHI, May 14: The Committee of 11 Secretaries has cleared the decks for immediate implementation of new pay scales for Central Government employees. An increase of 30 per cent in House Rent Allowance (HRA) will come into force in November, this year, while a recommendation to increase age of superannuation from 58 to 60 years has been pushed aside for the moment.

The Committee of Secretaries headed by the Finance Secretary has prepared a final report on the recommendations of the Fifth Pay Commission. While accepting most of the recommendations of the Commission, the Committee is understood to have suggested that those recommendations which have few financial implications be taken up first.

Some contentious issues, like reverting to six-day-week working schedule, separate examination for the IAS and an increase in age of retirement, have been presented in the report. The final decision lies with the Central Government. Administrative reforms as suggested by the Fifth Pay Commission are also likely to take a backseat, as the Committee of Secretaries is by and large mum on these issues.

The Committee, which will present its report to the Group of Ministers later this month, has suggested the implementation the Pay Commission report in ``parts''. All the recommendations, however, will be implemented with retrospective effect from January 1, 1996.

Sources in the Finance Ministry said that the Central Government will be in a position to revise pay scales by mid-June. The last revision in Central Government pay scales had taken place in 1986. The Group of Ministers will take up the Committee's report in the first week of next month. Once the Group gives its approval to the report, it will be a formality for the Union Cabinet to notify implementation of the report. The implementation process is set to begin by mid-June, the sources said.

The implementation of new pay scales is going to cost the Government exchequer over Rs 1,000 crore with retrospective effect. Since the Government has already given two interim reliefs and the new pay scales will essentially mean merger of Dearness Allowance, the Government will not have to spend much on activating the new pay scales recommendation. The Government employees thus do not stand to gain anything substantial, the sources said.

But since the recommendation about increasing HRA by 30 per cent in Class A-I cities will mean a substantial burden, its implementation will be notified sometime in October-November. The HRA will most likely be revised as part of Diwali bonanza in November, the sources said. The Union Government had allocated about Rs 4,000 crore for the implementation of the Fifth Pay Commission for the budget 1997-98.

Another important recommendation, that will be enforced straightway is the multi-pronged strategy to cut down on workforce. The expenditure department of the Finance Ministry has already been put on the job to collect information about the backlog of 3.5 lakh vacant posts and also the number of Government servants who retire this financial year.

The Pay Commission had suggested the abolition of vacant posts and a freeze on further employment.

The Committee could not decide on the increase in age of retirement from 58 to 60 years.

Several Central Government employees associations, in their respective representations to the Committee, had opposed this recommendation, although Indian Police Service Associations had demanded that age of retirement for the policemen should also be increased to 60 years.

Similarly, the issue of reverting back to six days a week working schedule was also opposed by Department of Personnel in the Central Government.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.