Latest news with #SixthPayCommission
Indian Express
12 hours ago
- Business
- Indian Express
HC order to make Sixth Pay Commission report public triggers new row over DA
A FRESH controversy has erupted over Dearness Allowance (DA) for West Bengal government employees, after the Sixth Pay Commission report was made public by the state government on Wednesday. This comes after a Calcutta High Court directive that the report should be published online by July 1. The controversy centres around a key recommendation made in the report — specifically in paragraph 12.4 — pointing out that the state is not bound to follow the All India Consumer Price Index (AICPI) to determine DA increases. The Commission, chaired by economist Abhirup Sarkar, said the state may determine DA on the basis of its own financial capacity. The court order was issued by Justice Amrita Sinha in response to a petition filed by government employee Debaprasad Halder. The petitioner had argued that while the state cited the Sixth Pay Commission in its defence in the ongoing DA litigation, the report itself had never been made publicly available. The court instructed the government to upload the document on the official website of the State Pay Commission. The Commission, chaired by economist Abhirup Sarkar, said the state may determine DA based on its own financial capacity. 'In view of the above, the Commission recommends that the State Government may from time to time decide the quantum of Dearness Allowance to be given to the employees, taking into consideration the financial resources available to the State Government. The State Government shall not be required to adhere to the prevailing All India Consumer Price Index for the purpose of granting/or fixing and /or enhancing the quantum of Dearness Allowance,' the report states. This has drawn sharp criticism from employee organisations, who allege that the recommendation legitimises the state's reluctance to align with central DA rates. They also allege that it formed the basis for the government's decision to reduce House Rent Allowance (HRA) from 15% to 12% of basic pay. 'It was our long-standing demand to make the report public. Now, it is clear why the government has been saying it is not bound to match central DA rates or maintain earlier HRA levels,' said Malay Mukhopadhyay, leader of the Confederation of State Government Employees, West Bengal, which is one of the petitioners in the legal battle. Dearness Allowance is extra money given to government employees and pensioners to help them deal with rising prices, calculated as a percentage of the basic salary or pension. The DA issue has been a long-standing point of contention in West Bengal. The state currently pays 18 per cent DA, following a 4 per cent hike announced by Chief Minister Mamata Banerjee in this year's budget. In contrast, central government employees receive 55 per cent DA. 'The revised House Rent Allowance of the employees… may be fixed at 12 per cent of the revised Basic Pay,' the Commission report states. The matter gained renewed urgency after the Supreme Court, on May 16, ordered the state to release 25 per cent of outstanding DA arrears within three months. A bench of Justices Sanjay Karol and Sandeep Mehta passed the interim order while hearing the state's appeal against a 2022 Calcutta High Court ruling that had directed parity with central government DA rates. The Supreme Court specified that the interim relief would apply to arrears accumulated between 2009 and 2019, affecting nearly 10 lakh state employees. 'We are of the considered view that the petitioner-State should release at least 25% of the amount due and payable… within a period of six weeks from today,' the court said in its order. Meanwhile, the deadline for this payment ends on Friday, June 27, but the state government has not yet made any announcement. 'The Sixth Pay Commission has misled the government. Our fight in court will continue,' Mukhopadhyay said. Atri Mitra is a Special Correspondent of The Indian Express with more than 20 years of experience in reporting from West Bengal, Bihar and the North-East. He has been covering administration and political news for more than ten years and has a keen interest in political development in West Bengal. Atri holds a Master degree in Economics from Rabindrabharati University and Bachelor's degree from Calcutta University. He is also an alumnus of St. Xavier's, Kolkata and Ramakrishna Mission Asrama, Narendrapur. He started his career with leading vernacular daily the Anandabazar Patrika, and worked there for more than fifteen years. He worked as Bihar correspondent for more than three years for Anandabazar Patrika. He covered the 2009 Lok Sabha election and 2010 assembly elections. He also worked with News18-Bangla and covered the Bihar Lok Sabha election in 2019. ... Read More
Indian Express
17-06-2025
- Politics
- Indian Express
Calcutta HC directs govt to publish 6th Pay Commission report
The Calcutta High Court on Tuesday directed the West Bengal government to publish the report of the Sixth Pay Commission by July 1. The order was passed in response to a case filed by government employee Debaprasad Halder, who alleged that despite repeated appeals, the report had not been made available online. He argued that while the state claims to follow the Sixth Pay Commission in its submissions in the Daily Allowance case, no corresponding documentation is publicly accessible. Justice Amrita Sinha's single-judge bench ordered that the recommendations be uploaded on the official website of the State Pay Commission, making it accessible to the public. During the hearing, Justice Sinha questioned the state's silence on the matter and observed, ' Why is it not in the public domain? Why won't the recommendations be on the website? This is government information meant for government employees. What is so secret about it that it must remain confined to the state government? Is there any court order restraining its publication?' The court set July 1 as the next date of hearing and instructed the state to ensure the report is published by then. Speaking to the mediapersons, petitioner Halder said, 'State employees have been waiting for this report for nearly a decade. The report contains vital information regarding DA and HRA. After repeated requests to the state government for the report's publication were met with resistance, the Unity Forum was compelled to seek legal intervention.'
Time of India
17-06-2025
- Politics
- Time of India
HC directs state to make Pay Commission report public
Kolkata: Calcutta High Court on Tuesday directed the state to make the recommendations of the Sixth Pay Commission public. Acting on a petition by an employee of the state correctional home, Justice Sinha directed the state to upload the complete report in the state website to ensure its public access. Tired of too many ads? go ad free now Justice Sinha also directed to hand over a copy of the report to the petitioner. Economist Abhirup Sarkar was the chairman of the Commission. Justice Sinha observed that the Pay Commission report was not a secret document. "Withholding it for an extended period is improper and also an injustice to employees whose livelihoods are directly affected by the recommendations of the Pay Commission," Justice Sinha said.
Mint
26-05-2025
- Business
- Mint
Life of a soldier: A secure job, but financial literacy lags
'As a young officer, personal finances were never top of mind," recalls Colonel Ajit Kumar Singh Chauhan, a 63-year-old Indian Army veteran. 'Juggling duties, official commitments, physical training, games with troops and mandatory evening parties there was hardly any time to focus on financials." Financial awareness has always been low in the army and seniors hardly discussed money or investments, he added. Chauhan's views reflect a broader pattern among defence personnel in the Army, Air Force, and Navy, where financial awareness has traditionally been low. 'Financial ignorance and lack of time combined, saving in provident fund (called Defence Service Officers Provident Fund or DSOP) was an end in itself during my service years." DSOP is the provident fund scheme for defence personnel that requires a mandatory minimum contribution of 6%, with no employer contribution. Its current interest rate is 7.1%. However, Chauhan's story has a positive ending. Now retired in Bareilly, he lives comfortably on a military pension and systematic withdrawal plan from his mutual fund (MF) portfolio. 'I started SIPs in 2004 after learning about MFs. On retiring at 54 in 2016, I invested my entire corpus in equity funds and have averaged over 15% annual return." A stable pension to fall back on allowed him to take market risks. Rising salaries, but frugality remains Salaries in the armed forces have considerably improved after the Sixth Pay Commission (2006) and the Seventh Pay Commission (2016). Before that, the salaries were barely enough to keep heads above water, Chauhan recalled. Before the Sixth Pay Commission, Chauhan, with two daughters and 23 years into the service, was earning merely ₹26,500. 'Had my wife not been working, making ends meet would have been a tall order. Back then, it was routine for defence officers posted in Delhi-NCR to dip into their provident funds to complement the salary," he said. 'My salary under the sixth Pay commission rose to about ₹80,000 and provided financial stability." Currently, a colonel in the Army after 15-25 years of service and corresponding rank officers in Navy and Air Force get an average gross salary of about ₹2.3 lakh. Starting gross salaries for defence officers are about ₹1.1 lakh, while for other rank (OR) soldiers, salaries start from ₹40,000 and go up to ₹1.1 lakh across different ranks. These salary figures can increase by 10-40% based on HRA and other additional allowances that are granted during field postings in combat zones. Abraham Cherian, a retired Army officer who is now a Sebi-registered investment advisor (RIA), says defence personnel lead a frugal lifestyle due to relatively low salaries and even lower cost of living. 'A colonel after 18-20 years of service will earn the same post-tax salary that someone with 10 years of service in the private sector earns. So, they are used to spending less. Moreover, these men and their families mostly live in smaller cities, so aspirational lifestyle expenses are also low," said Cherian, founder of 360° wealth advice. In addition, there are other financial benefits like free of cost medical services, which also covers dependent parents, subsidised school fees and accommodation, life insurance coverage and discounted FMCG goods, electronics and vehicles through canteen. Armed forces insurance coverage, especially, is a crucial benefit as defence personnel don't easily get term insurance that covers operational hazards. Even if they are eligible, the premiums are 50-100% more expensive. At monthly premiums of ₹5,000-15,000, the armed forces insurance provides coverage against death and disability, no questions asked. These benefits provide a financially comfortable life to serving personnel. Karan Kalra is a retired officer from the Navy working in the cybersecurity industry post retirement for a higher absolute salary. He says earnings can't be compared. 'As it is said, defence forces are not a job but a way of life. The pay is indeed better in the private sector, but defence forces provide a good standard and quality of life," said the 35-year-old. Despite the inherent dangers of operational deployments, serving and retired personnel say financial worries rarely cross their minds during action. 'The mindset is very different," says Lt Col T.S. Anand (retd). 'In training, we are broken down and rebuilt to focus on fighting under overwhelming odds. In an operational area, you are constantly processing mission-critical information—there's no room to think about personal finances." 'The government extends support in the form of lump-sum payments, pensions and accommodation provisions to widows of armed forces personnel. This financial security gives us inherent strength to discharge our duties and not worry about the financial future of the family," said Chauhan, who has spent one-third of his service in combat zones. Also Read: Fund houses suggest these four tweaks to make mutual funds even more sahi Secure but early retirement Permanent commission officers enjoy significant financial security through pensions and medical benefits post-retirement. A one-time premium of ₹30,000-1.2 lakh secures lifetime medical cover. Officers receive a retirement corpus comprising DSOP funds, gratuity, insurance payouts, leave encashment, and commuted pension, which means upto 50% of the monthly pension is paid out as a lump sum on retirement. Officers typically receive ₹1.2–2 crore on retirement, while soldiers get ₹50–80 lakh, depending on rank and service withdrawals. However, this cushion must last long since military retirement comes much earlier than in civilian careers. 'Defined pensions and lifetime medical care shifts retirement planning focus from basic sustenance to lifestyle sustenance," said Sanjeev Govila, a retired colonel in the Army and Certified Financial Planner, CEO, Hum Fauji Initiatives, an RIA. Officers and jawans typically retire between the ages of 35 and 54. 'This necessitates alternative career planning and bridging income gaps until civilian employment begins. Early retirement also means they have to fund major life events like buying a house, children's higher education and marriage after their regular service income ceases," said Govila. Retired group captain Sudhir Nasiar took up a job with the Haryana government after his retirement from the Air Force in 2017 at 49 years of age to supplement his pension. 'After retiring, defence personnel still have 10 to 25 years left to work. While pension takes care of the basic necessities, additional income from either investments or additional work helps in maintaining a good quality of life," he said. This is especially crucial for ORs who retire in their late-30s to mid-40s and often underestimate future expenses like children's education or marriage. 'Soldiers don't plan well thinking pension and retirement corpus will sustain them for life, but it's a wrong approach. It can fall short if one retires in a city and while expenses of children's education and marriage are still pending," Anand said. The biggest challenge is faced by short service commission (SSC) officers who complete service in 10-14 years and don't get pension (except disability pension, if applicable) or medical benefits after retirement. They have the option for permanent commission after 14 years, but barely 30% are made permanent. Kalra, who retired as an SSC officer at 33 years of age, knew this well and made sure to prepare for the career transition. 'I started building skills and getting shorter duration certifications which could be undertaken with work," he said. 'The DSOP, NGIF (Naval Group Insurance Fund), and gratuity did give me a financial cushion, but even the combined corpus was not enough as the responsibilities for people in my age group keeps increasing with growing children and ageing parents." Around 1,000 retired SSC officers across the three armed forces are pursuing a legal case in the apex court demanding pro-rata pension and medical benefits post retirement on the premise that they perform similar duties and face equal risk as permanent commission officers. Lack of financial awareness and miss-selling Veterans who are now working as financial advisors and conduct financial planning seminars for armed forces personnel say financial awareness continues to be low. 'Social norms discourage financial discussions. Combined with a lack of financial education, this can lead to over-reliance on safe, low-return instruments," said Govila. Anand said, while appetite for stock markets, MFs is taking off, preference for traditional investment tools like land, bank deposits, insurance cum savings plans and provident fund continues to be the preferred route. 'In the private sector, people are better financially educated as they don't have job security or pension, so they have to proactively plan. Also, there is higher disposable income and access to a financially aware peer circle," said Kalra who has worked in both the armed forces and the private sector. Lack of accessibility to quality financial advice compounds the issue. Retired colonel Sumesh Seth, who conducts financial awareness seminars for armed forces personnel, said banks and insurance agents are often the only ones offering advice as they have access to cantonments. 'Both of them are driven by commissions and mis-sell traditional insurance plans promising assured returns." Exposure to the internet and social media for financial advice with limited financial literacy is a new risk. Serving personnel often fall prey to risky trading and personal loans. 'There is a concerning trend of both soldiers and officers taking to trading and futures & options (F&O) and racking up huge losses. They are also piling up EMIs for every small purchase because personal loans are easily accessible," said Anand. Also Read: How to combat misselling in life insurance
