Thursday, April 05, 2012

Karnataka Pay Commission : Committee recommends the Pay Fixation Formula

Karnataka Pay Commission : Committee recommends the Pay Fixation Formula
Pay Fixation Formula
The Committee recommends that the revised pay scales of the Government employees be effective from 1-4-2012 and the pay in the revised scale shall be fixed as follows:

(a) Basic Pay as on 1-4-2012.

(b) Dearness Allowance of 76.75%  at the index level of  191.5 points i.e., DA as on 01.01.2012.

(c) Fitment  benefit  of  22.5% of  Bas i c  Pay as  on 1-4-2012  inclusive  of 15% IR.

(d) After computing the total emoluments as above, the pay be fixed in the revised   scale at the stage next above the amount so computed.

The pay in the revised pay scale may be fixed from  1-4-2012.

The payment of Interim Relief shall be discontinued from 1-4-2012.

Dearness Allowance
The terms of reference of the Committee require the Committee:

(i) "To examine and determine the Dearness Allowance formula with reference to existing Central Dearness Allowance formula adopted by the State Government and to suggest changes which may be feasible".
(ii) The Fifth State Pay Commission, after examining the pattern of payment of  DA by all the other States, has recommended to follow the pattern of Dearness Allowance formulated by the Central Government.
(iii) The Central Government, on the recommendation of the Sixth Central Pay Commission, adopted new series of All India Consumer Price Index for Industrial Workers using the 2001 as the base year with Consumer Price Index at 100 points. Consequently, the State Government, having adopted the Dearness Allowance pattern of Central Government, revised the ratio of 1:0.875 to 1:1.02 for calculation of the Dearness Allowance with effect from 1.7.2008, by an Order dated 12th November 2008.
(iv) The Committee has noted that all the State Governments have been following Central Dearness Allowance formula and pattern. Accordingly, the Committee recommends for continuance of Central Dearness Allowance pattern. The Central Government revised pay structure relates to Index Level of 115.76 points as per AIACPI (IW) 2001 series. The revised pay structure recommended by the Committee relates to Index Level of 191.5 points in AIACPI (IW) 2001 series by merger of DA sanctioned w.e.f. 01.01.2012 at this index level and accordingly the Committee recommends to sanction the Dearness Allowance to State Government employees at the rate of 0.604% for every 1% of DA sanctioned by the Government of India to its employees w.e.f. 01.07.2012.

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