To cost state exchequer Rs 2700 cr annually.
The recommendations of the Fifth Punjab Pay Commission (FPPC) constituted by the state government would lead to an additional burden of Rs 2,050 crore per annum for serving the employees and Rs 650 crore for pensioners on the state exchequer.
Further, there would be an additional burden of payment of arrears — Rs 3,450 crore for serving employees and Rs 1,350 crore for pensioners — as the commission had recommended revised pay scales from January 1, 2006.
FPPC chairman SK Tuteja submitted the recommendations on Monday. The Punjab government did not implement the recommendations of the Sixth Pay Commission as the state had constituted its own commission.
The commission stated that all recommendations should be implemented in whole as partial implementation would bring in anomalies and inconsistencies. The average increase is around 27 per cent and the commission also recommended increasing the retirement age for all employees from 58 to 60.
The commission also recommended that teachers, nurses, constabulary be paid higher scales and a person stagnating at the maximum of any pay band for more than one year continuously be placed in the immediate next higher pay band without any change in the grade pay.
In 2008-09, Punjab finance minister Manpreet Singh Badal presented a revenue deficit of Rs 1,000.18 crore. The Budget for the year 2009-10 would be announced after the elections.
It also recommended uniform annual increment of three percent, continuing the present system of dearness allowance on central pattern, five percentage points increase in house rent allowance for all areas in Punjab, rural area allowance to continue at 6 per cent, employees allowed to encash 10 days of leave at the time of availing LTC with a maximum of 60 days during the entire career.