REPORT OF THE COMMITTEE OF SECRETARIES HEADED BY
THE CHIEF SECRETARY TO THE GOVERNMENT
TO EXAMINE RECOMMENDATIONS OF THE
11TH PAY REVISION COMMISSION
REPORT OF THE COMMITTEE OF SECRETARIES HEADED BY THE CHIEF SECRETARY TO THE GOVERNMENT TO EXAMINE RECOMMENDATIONS OF THE 11TH PAY REVISION COMMISSION
1. The Government of Andhra Pradesh has constituted the 11th Pay Revision Commission (PRC), vide the G.O. Ms. No.75, General Administration (SC-A),
dated 28-05-2018. The terms of reference (ToRs) of the 11th PRC are as mentioned
hereunder.
i. To evolve the principles which may govern the structure of emoluments and
the conditions of service of various categories of employees of the State
Government, Local Bodies and Aided Institutions, Non-teaching staff of
the Universities including Acharya N.G. Ranga Agricultural University,
Jawaharlal Nehru Technological University, Work charged employees and
full-time contingent employees, which have a financial bearing taking into
account the total packet of benefits available to them and suggest changes
therein which may be desirable and feasible;
The Commission, however, shall not deal with the teaching staff in
Government Colleges and Government Aided Private Colleges drawing
UGC/AICTE and ICAR scales. The Commission shall also not deal with
the officers of A.P. State Higher Judicial Service and A.P. State Judicial
Service who are drawing Pay Scales as recommended by the First National
Judicial Pay Commission.
ii. To examine as to what extent the existing DA may be merged in pay and to
evolve consequent new set of pay scales merging DA therein and to suggest
the mode of fixation of pay in the Revised Pay Scales.
iii. To study the Automatic Advancement Scheme as modified from time to
time keeping in view the anomalies that have arisen during the
implementation of the said scheme and also to examine whether the said
scheme should continue in its present form and to make the
recommendations in this regard.
iv. To examine the need for various Special Pays, Compensatory and various
other Allowances and other perquisites in cash or kind now allowed and to
make recommendations regarding their continuance or otherwise and if
continuance is recommended what modifications, if any, are deemed
desirable with regard to their rates, terms and other conditions which should
govern them in future.
v. To examine and review the existing pension structure for pensioners and
make recommendations which may be desirable and feasible.
vi. Review of the existing human resources of all departments in tune with the
contemporary requirements including contract/outsourcing personnel
particularly in the context of State bifurcation.
vii. To give its recommendations on any other matter referred to it by the State
Government during the tenure of its office.
viii. In formulating its recommendations, the Commission may take in to
account the overall financial position of the State.
2. Further, vide the G.O.Rt.No.1491, General Administration (SC-A) Department,
dated 03-07-2018 the Government has appointed Sri Ashutosh Mishra IAS (Retd.)
as the Pay Revision Commissioner
3. Subsequently, the Government, vide the G.O.Rt.No.566, General Administration
(SC.A) Department, dated 17-03-2020 have entrusted additional term of reference
relating to the employees of Public Transport Department to the 11th Pay Revision
Commission. The Fresh Terms of Reference are as follows:
i. To evolve the principles which may govern the structure of emoluments and
the conditions of service of various categories of employees of Public
Transport Department which have a financial bearing taking into account
the total packet of benefits available to them and suggest changes therein
which may be desirable and feasible;
ii. To examine as to what extent the existing DA may be merged in pay and to
evolve consequent new set of pay scales merging DA therein and to suggest
the mode of fixation of pay in the Revised Pay Scales;
iii. To study the Automatic Advancement Scheme as modified from time to
time keeping in view the anomalies that have arisen during the
implementation of the said scheme and also to examine whether the said
scheme should continue in its present form and to make recommendations
in this regard;
iv. To examine the need for various Special Pays, Compensatory and various
other Allowances and other perquisites in cash or kind now allowed and to
make recommendations regarding their continuance or otherwise and if
continuance is recommended what modifications, if any are deemed
desirable with regard to their rates, terms and other conditions which should
govern them in future;
v. To examine and review the existing pension structure for pensioners and
make recommendations which may be desirable and feasible;
vi. In formulating its recommendations, the Commission may take into
account the overall financial position of the State.
4. The 11th Pay Revision Commission has submitted its report to the Government on
05-10-2020.
5. In the G.O.Ms.No.22, Finance (PC -TA) Department, dated 01-04-2021, the
Government constituted a Committee of Secretaries to examine recommendations
of the 11th PRC with the following members:
i. Dr. Sameer Sharma, Chief Secretary
ii. Sri Ajeya Kallam, (Retd.) Principal Advisor to CM
iii. Dr. Rajat Bhargava, Special Chief Secretary, Revenue
iv. Sri Shamsher Singh Rawat, Principal Finance Secretary
v. Sri Shashi Bhushan Kumar, Principal Secretary (Services), GAD
vi. Dr. K.V.V. Satyanarayana, Secretary, Finance (Budget)
6. The first meeting of the Committee of Secretaries was held on 01-12-2021. The
Chief Secretary welcomed all the members and briefly explained the mandate of
the 11th PRC.
7. The Principal Finance Secretary has explained all aspects of the 11th PRC report in
detail & made a presentation on various recommendations of the report. The
recommendations of 11th PRC are summarised below.
Recommendations of 11th PRC
Government Employees
Pay Scale & Fitment:
a. Retention of the concept of Master Scale with 32 Grades and 83 stages (increase
from 81)
b. Evolution of new pay scale by merging 100% of Dearness Allowance (as on 01.07.
2018) with Basic Pay and adding a fitment benefit of 27 % on Basic Pay.
c. Formulation the Master scale with the following features:
i. Minimum Pay ₹.20,000/- per month.
ii. Maximum Pay in the Master scale ₹. 1,79,000/- p.m.
iii. Ratio between Minimum and Maximum of the Scale 1: 8.95.
iv. Annual increment to range from 3% of the pay in initial stages to 2.34%
at the end.
v. Periodicity of increase in increment is recommended to be 3 years up
to stage 72 in the Master Scale
vi. Continue grant of stagnation increments beyond time scale up to 5.
vii. The new pay scales to come into effect from 1.7.2018.
viii. Monetary benefit implementation date left to Government
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Major Allowances
a. Dearness Allowance: Recommended a conversion factor of 0.91 for sanction of
DA from 1.1.2019 for every 1 % increase in DA sanctioned by the Government of
India
b. House Rental Allowance: While continuing the existing classification and rates of
HRA, introduced a new class of cities with a population above 10 lakhs and
increased their HRA slab from 20% to 22%.
c. City Compensatory Allowance: Recommended two slab rates, one for
Visakhapatnam and Vijayawada and the second for the 12 other Municipal
Corporations. The quantum of allowance is increased for all the pay ranges
(Municipal Corporations of Visakhapatnam and Vijayawada ₹400-1000 and other
Municipal Corporations ₹,300-750
Pensionary Benefits
• To consolidate pension/family pension with dearness relief as on 1.7.2018. 27% of
the basic pension/family pension is to be treated as fitment benefit.
• A revised scale of additional quantum of pension starting from 70 years of age has
been suggested.
• The maximum amount of Gratuity payable at the time of retirement is
recommended to be enhanced from ₹.12 lakh to ₹.16 lakh.
Other Category of Employees
a. Contract: Recommended minimum of the time scale, in the now revised pay scale
b. Outsourcing: Recommended new pay which is an enhancement of 30% in each
of the existing category.
c. Home Guards: Daily Allowance at the rate of 1/30th of the Minimum Pay (in the
Revised Pay Scale recommended in this report for the Police Constables) plus
Dearness Allowance thereon at the rates applicable to the Government employees
from time to time.
d. Full-time Contingent/Daily Wage/ Consolidated Pay/NMR employees:
Enhanced to 20,000+DA
APSRTC
a. Pay Scale: Make the Revised Master Scale comprising of 32 Grades and 83 stages,
applicable to the PTD employees also.
b. Assignment of equivalent Government Pay Scales: Assigning a corresponding
revised pay scale to each category of PTD employee. Assign the Special Grade Post
Pay Scale and Special Promotion Post Scale I-B/ Special Adhoc Promotion Post
Scale I-B (under the Automatic Advancement Scheme-AAS) corresponding to the
RPS 2018 scale assigned by this Commission against the basic post held by the
employee in APSRTC RPS-2017.
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c. Principle of pay fixation in RPS-2018 with effect from 01-01-2020: Pay fixation
of the PTD employees, who were in service prior to 01-07-2018, be done in a two-
step process i.e. first by fixing the pay notionally in RPS-2018 as on 01-07-2018 and
then by re-fixing the pay in RPS-2018 as on 01-01-2020.
i. For the first step a fitment benefit of 1.6% % on the Basic Pay as on 01-07-
2018 in the APSRTC RPS-2017 be allowed.
ii. A prescription in respect of pay fixation of employees who have joined duty
in the APSRTC between 01-07-2018 and 01-01-2020.
d. Dearness Allowance: Allow the Dearness Allowance (D.A.) with effect from 01-
01-2020 (date of absorption) at the same rate as fixed by the State Government for
all its employees
e. House Rent Allowance (HRA): Apply the same rates of HRA, as recommended
for the State government employees to the PTD employees also with effect from
01-01-2020. In addition, the PTD employees, whose work stations have been fixed
at Hyderabad, Bengaluru and Chennai, to draw HRA @ 30% of Basic Pay subject
to a maximum of ₹.26,000/- per month.
f. City Compensatory Allowance (CCA): Allow the City Compensatory allowance
to the PTD employees at the same rates of CCA as those recommended for the
other State Government employees stationed in different Municipal Corporation
areas. Separates rates have also been indicated for the PTD employees head
quartered in Hyderabad, Bengaluru and Chennai Municipal Corporations.
g. Other Allowances, Special Pay, Perquisites and Incentives The other Allowances,
Special Pay, Perquisites and Incentives etc. have been rationalised after examining
the rationale for extending such benefits.
h. Protection of total emoluments of PTD employees: In case, for any PTD
employee the gross total emoluments (sum total of Pay and Allowances), as fixed
on 01-01-2020 in the RPS-2018, falls short of his/her total emoluments in the
existing APSRTC scale, such shortfall may be treated as Personal Pay to be
absorbed in future increases in pay and allowances
i. Pensionary Benefits: PTD employees, absorbed in Government service on 01- 01-
2020, be given an option to either continue with EPS-95 or join the CPS. The PTD
employees, who opt for CPS, automatically be covered under the DCRG Scheme
applicable to the other Government employees. In case, they opt to continue under
EPS-95, they may get the benefit under the APSRTC Gratuity formula as before.
8. The recommendations of the 11th PRC were discussed by the Committee in
extensive detail.
9. The Committee has also examined the aspects relating to the impact of State
bifurcation on the financial position of the State ; Employee welfare measures taken
by the Government such as sanction of interim relief, increase in salaries for various
categories of employees, Minimum Time Scale for contract employees; absorption
of APSRTC employees into State Government; Expenditure on human resources;
issues relating to Village/Ward Secretariat employees, formation of Andhra
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Pradesh Corporation for Outsourced Services (APCOS) for the welfare of
Outsourced employees & other such measures. The members have noted that the
Government incurred substantial expenditure on these measures for the welfare of
employees.
10. The Principal Finance Secretary had also informed the Committee of Secretaries
that the Finance Department has worked out the financial implications arising
from the following different scenarios.
Scenario 1: 11th PRC recommendations with fitment @ 23% - Rs. 11,557
crore/annum
Scenario 2: 11th PRC recommendations with fitment @ 27% - Rs. 13,422
crore/annum
Scenario 3: 11th PRC recommendations with fitment @ 14.29%, HRA and
Additional Quantum of Pension as per 7th CPC – Rs. 9,150
crore/annum
Scenario 4: 11th PRC recommendations with fitment @ 23%, HRA and Additional
Quantum of Pension as per 7th CPC - Rs. 10,211 crore/annum
Scenario 5: 11th PRC recommendations with fitment @ 23.5%, HRA and
Additional Quantum of Pension as per 7th CPC - Rs. 10,773
crore/annum
Scenario 6: 11th PRC recommendations with fitment @ 27%, HRA and Additional
Quantum of Pension as per 7th CPC - Rs. 11,413 crore/annum
Scenario 7: 11th PRC recommendations with fitment @ 30%, HRA and Additional
Quantum of Pension as per 7th CPC - Rs. 12,736 crore/annum
In addition to the above, the additional financial implication on account of
implementation of 11th PRC for PTD employees will be around Rs. 225 crore to
Rs. 250 crore/annum as worked out by 11th PRC. Further, the additional financial
burden due to implementation of pay scales for Village/Ward Secretariat
employees will be around Rs. 1,800 crore/annum.
11. It was also decided in the aforesaid meeting to consult the representatives of State
Government employees so that their views can also be obtained.
12. The Committee of Secretaries held detailed consultations on 3-12-2021 with the
representatives of the following employees’ associations:
i. Andhra Pradesh Non-Gazetted Officer’s Association
ii. Andhra Pradesh Secretariat Association
iii. State Teachers’ Union, Andhra Pradesh Association
iv. Andhra Pradesh Teachers’ Federation
v. Andhra Pradesh United Teachers’ Federation
vi. Andhra Pradesh Revenue Services Association
vii. Andhra Pradesh Government Employees Association
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viii. Andhra Pradesh Treasury Services Association
ix. Andhra Pradesh Cooperative Service Association, Amaravati
x. Andhra Pradesh Survey Employees’ Association
xi. Andhra Pradesh Commercial Taxes Non-Gazetted Officers’ Association
xii. Andhra Pradesh Live Stock Service Association
xiii. Andhra Pradesh State Typists and Stenographers’ Association
13. In the above meeting, the associations requested for giving a fitment ranging from
40% to 60%. Certain other demands on continuation of stagnation increments,
raising of minimum pay to Rs. 26,000 and maximum pay to Rs. 2,25,000,
enhancement of retirement age of Group D employees to 62 years, revising the
child care leave to 2 years on lines of the CPC, etc. were also put forward.
14. After the conclusion of the above deliberations, the Committee has summarised
its observations and recommendations as hereunder.
I. Observations on the Financial Position of the State
Impact of State Bifurcation
a) The bifurcation of the State of Andhra Pradesh has caused structural changes
in the State’s economy & led to the emerging of the successor State of Andhra
Pradesh as revenue deficit compared to the erstwhile State which was revenue
surplus.
b) During the bifurcation, division of liabilities was done on population basis
instead of on GSDP basis, whereas the division of assets was done on location
basis.
c) Considering that virtually all the major assets are located in and around
Hyderabad city, which has since become an integral part of Telangana State,
notwithstanding it being the common capital, Andhra Pradesh has forfeited
major economic assets, lost several institutions, lost revenue, lost substantial
strength in service sector, lost industries, and inherited massive amount of
liabilities without having the wherewithal to service them.
d) Thus, the damage inflicted by the bifurcation of the State of Andhra Pradesh
has had disastrous impact on economic and financial parameters of the State.
e) Tax revenue of successor state was only 46 % of the combined State on the date
of state bifurcation. The population, however, of the successor state was 58.32%
From the 2020-21 RE figures, it is evident that the successor State of AP, with
its agrarian economy, could mobilize only 39 % of the combined revenues of
AP and Telangana. This declining share also demonstrates the negative impact
of loss of Hyderabad –an economic hub.
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f) Per Capita Income (PCI) is one of the most important macro-economic
indicators which indicates the standard of living of people. It determines the
purchasing power of the people which impacts on the revenue receipts of the
exchequer. The PCI of the state has reached Rs.1,70,215 during 2020-21 which
is lowest amongst the southern states, the highest being Telangana at
Rs.2,37,632.
g) Further, the increase in revenues has been lower due to agrarian nature of the
state economy. The Government, is therefore having to inevitably stretch its
financial resources causing an increase in deficit as well as outstanding debt,
straining the fiscal position further.
h) The State of Andhra Pradesh has further suffered financial hardships due to
freezing of funds to the extent of Rs.2,232.33 crore by Telangana of certain
institutions in Schedule IX and Schedule X of the APRA. Further, the state has
lost access to institutions under Schedule IX with as asset value of Rs. 1.06 lakh
crore and those under Schedule X with an asset value of Rs. 39,191 crore.
Telangana State Power Utilities have unpaid power dues towards APGENCO.
Outstanding dues as on 31.08.2021 amounts to Rs.6,284 crore.
i) Only Rs. 3,979.5 crore towards revenue deficit grant has been received against
the expected revenue deficit grant of Rs. 22,948.76 cr. The balance amount of
Rs. 18,969.26 crore is yet to be released by GoI.
j) Further, several provisions of Andhra Pradesh Reorganisation Act, 2014,
relating to industrial incentives, establishment of Kadapa Steel Plant,
Ramayapatnam Port, etc. are yet to materialise, which has led to slow
economic growth of the State.
Impact of Covid-19
a) The strain on State finances was further compounded by the outbreak of Covid-
19 pandemic since December 2019 which has caused an additional burden of
more than Rs. 20,000 crore on account of loss of anticipated revenues and
additional expenditure towards Covid mitigation measures.
Net Impact
a) The net impact of all the above has led to deterioration of fiscal health of the
State. The State from a revenue surplus position in the combined state has
become revenue deficit. The revenue deficit stood at Rs. 34,927 crore and fiscal
deficit at Rs. 54,370 crore in FY 2020-21.
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II. Observations on steps taken by Government for Employee Welfare
1. Sanction of Interim Relief
a) The Government has already sanctioned 27% Interim Relief (IR) vide G.O.
Ms. No. 60 Finance (PC&TA) Dept. dated 6-7-2019, in fulfilment of the
promise made by the Hon’ble Chief Minister and the request of the employees
and various service associations, pending finalisation of the 11th PRC.
b) Accordingly, the benefit of IR at 27 % of basic pay is being accorded, with effect
from 1st July 2019, to all the Government Employees, including the employees
of the Local Bodies (PR & ULBs), the institutions receiving Grants-in-Aid from
the Government, Work Charged Employees and Full-Time Contingent
Employees who are currently drawing pay in the Revised Scales, 2015.
c) Similarly, for the welfare of pensioners, the Government vide G.O. Ms. No. 61
Finance (HR-3-Pension-I) dated 18-7-2019 sanctioned interim relief at the rate
of 27% of basic pension w.e.f. 1st July 2019 to all Government Pensioners/
Family Pensioners including the pensioners of the Local Bodies (PR & ULBs),
the institutions receiving Grants-in-Aid from the Government, Work Charged
Establishment & erstwhile Full-Time contingent employees, who are currently
drawing pension in the Revised Scales of Pay 2015.
d) So far, the Government has paid Interim Relief, to a tune of Rs.11,270.21 crores
for employees and Rs.4,569.78 crores for pensioners totalling to Rs.15,839.99
crores from 01-07-2019 to till date.
2. Increase in Salaries of various categories of employees
a) The Government has increased salaries of 3,01,021 employees in various
categories like Anganwadi workers, Asha workers, etc. as shown in the table
below. The yearly expenditure on account of salaries to these categories of
employees has gone up from Rs. 1,198 crore to Rs. 3,187 crore.
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Table 1: Increase in salaries of various category of employees
S.No Department Job Previous
Salary
Enhanced
Salary G.O. Emps
1 WCD&SC
Anganwadi Workers 10,500 11,500 G.O.MS.No.13 Dated:
26-06-2019
47,476
Mini Anganwadi Centre 6,000 7,000 6,526
Anganwadi Helpers 6,000 7,000 45,175
2 PR&RD
Village Organization
Assistants/Sangamitras/
Animators
2,000 10,000 G.O.RT.NO.699
Dated: 11-11-2019 28,152
3 MA&UD
Sanitary workers
(15.08.2020) 8,000 18,000 G.O.MS.No.233
Dated: 26-08-2019 29,800
Supervisors 12,000 18,000
4 HM&FW Asha Workers
4000 to
8500 10,000 G.O.MS.No.87
Dated: 07-08-2019 41,416
5 LET&F
MNO 6,700 17,746
G.O.MS.No.6
Dated:26-04-2021
2
ANM 10,020 28,000 1
Dhobi 6,700 13,000 (as per
PRC-2015) 2
Barber 6,700 13,000 (as per
PRC-2015) 2
6 Tribal welfare Community Health
Workers 400 4,000 G.O.MS.No.117
Dated:03-12-2019 2,652
7 Home Daily Duty Allowance to
Home Guards 600 710 G.O.MS.No.876
Dated:12-10-2019 14,984
8 School Edu Cook-cum-Helpers 1,000 3,000 G.O.MS.No.61
Dated:15-09-2019 84,833
Total 3,01,021
3. Minimum Time Scale (MTS) & other benefits for Contract Employees
a) Keeping in view the welfare of the contract employees, in supersession of all
the orders issued earlier, regarding the remuneration & other benefits to be paid
to persons who have been appointed on contract basis, comprehensive orders
were issued vide G.O. Ms. No.40, Finance (HR-I Plg. & Policy) Department,
dated 18-06-2021 for payment of Minimum of Time Scale (MTS) in Revised
Pay Scales 2015 to the contractual employees engaged in the Government
Departments, Universities, Societies, KGVB and Model School of the relevant
posts in which the employees are working.
b) Further, orders were issued providing for 180 days of paid maternity leave for
women married employees engaged on contractual basis in the Government
Departments, Universities, Societies, KGVB and Model Schools for the first
two child births.
c) Orders were also issued for sanction of Ex-gratia to the contract employees i.e.
Rs.5.00 lakhs (Rupees five lakhs only) for accidental death & Rs.2.00 lakhs
(Rupees two lakhs only) for natural death to legal heir of deceased Contract
employees, who die in harness, while in service.
d) The per annum additional benefit to the contract employees on account of these
measures is approximately Rs. 360 cr per annum.
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4. Absorption of APSRTC employees into State Government.
The Government of A.P. has absorbed all APSRTC employees into
Government service w.e.f., 01-01-2020 by creating a new Public Transport
Department (PTD) under the administrative control of T,R&B Department.
About 53,500 employees of APSRTC were absorbed into Government
service. Salaries are paid to all PTD employees from January, 2020 onwards
by the Government. An expenditure of Rs.5,380 crores has been incurred
towards salaries of PTD employees from Jan 2020 to Oct 2021.
5. Recruitment of Village & Ward Secretariat Employees
To take governance to the last-mile and to provide services at the doorsteps to
the citizens, 1.28 lakh regular employees were recruited in the newly
established Village/Ward Secretariat system in the State.
The financial implication of the above measure is Rs. 2,300 crore per annum.
6. Fresh recruitment with special focus on Health Sector
13,677 employees in various categories like Doctors, Nurses & Other
paramedical staff have been recruited in the Health Medical & Family Welfare
Department to strengthen the public health care system in the State.
This has an estimated additional financial impact of Rs. 820 crore per annum
on the State ex-chequer.
7. Andhra Pradesh Corporation for Outsourced Services (APCOS)
i) With an intention to prevent corruption in recruitment and to create a
seamless, hassle-free system of payment of salaries to the outsourced
employees on the 1st working day of every month, it was decided to establish
a pay roll agency under the Government. Accordingly, Government formed
Andhra Pradesh Corporation for Outsourced Services (APCOS) to
completely do away with the private outsourcing agencies to meet the
requirement of outsourced manpower vide G.O.Ms.No.126, General
Administration (SU.I) Department, Dt:18.10.2019 and G.O.Ms.No.136,
General Administration (SU.I) Department, Dt:04.11.2019.
ii) 98,016 employees have benefited through APCOS. Salaries are being paid
through APCOS on 1st working day of every month to the Bank Accounts of
all candidates. Statutory benefits like EPF & ESI are also being paid on time.
iii) An expenditure of Rs. 2,040 crore is being incurred per annum through
APCOS.
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8. Other Welfare Measures to the Employees
a) Resolving of promotional channel to MPDOs
Long pending issue of finalization of seniority among Mandal Parishad
Development Officers (MPDOs) of different feeder categories appointed
between 1995 to 2011 has been resolved and the promotion channel has been
finalized to MPDOs in the ratio of 5:3:3 for Direct Recruited MPDOs,
MPDOs promoted from the feeder category of EO RD and MPDOs
promoted from feeder category of Women and Child Welfare Department
vide Memo No. PRR01-PEST(MPDO)/18/2021-ESST-V, PR & RD (Esst-
V) Dept. dated 05-08-2021.
b) Creation of promotional channel to VROs (Gr-I):
Vide G.O.Ms.No.154, Revenue (Ser.III) Department, dated 5-7-2021 orders
have been issued for creation of promotional channel for the category of
Village Revenue Officers (Gr-I) as Senior Assistants in supersession of the
orders issued vide the G.O.Ms.No.132, Revenue (Ser.III) Department, dated
08-05-2020.
c) Filling up of 3,795 posts of VROs with VRAs
Government in the G.O.Ms.No.13, dt. 27.01.2020 accorded permission to all
the District Collectors in the State to fill 3795 posts of Grade-II Village
Revenue Officers from the cadre of VRAs in relaxation of relevant Rules on
the subject such as 3(iv) and Rule 4(iv)(a)(ii) and (iii) of AP VRO Service
Rules 2008 as one time measure.
d) Extending benefit of five days Spl. Causal Leave to women employees:
Government have issued orders for extending the benefit of availing five (5)
days Special Casual Leave in addition to the existing (15) days Casual Leaves
and (5) Optional Holidays per calendar year to all the Women Employees
working under the control of State Government vide G.O.Ms.No18, Finance
(HR.IV-FR&LR) Department dt.10.03.2021.
e) Continuing of payment of 30% of HRA to relocated employees:
The payment of 30% HRA to relocated employees from Hyderabad working
in AP Secretariat and HODs is continued till date.
Increase in HR expenditure
a) The Committee observed substantial increase in the salaries and pensions
expenditure of the state. The expenditure on human resources has increased
from Rs.52,513 crore in 2018-19 to Rs. 67,340 crore in 2020-21. The
expenditure on salaries and pensions has surpassed (111%) the State Own
Revenues in 2020-21 as depicted in the table below.
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Table 2: Increase in HR expenditure (Rs. crore)
Category FY 18-19 FY 19-20 FY 20-21
Salaries 31,165 33,102 37,458
Pensions 18,112 21,491 21,936
Other Salaries 3,235 6,297 7,947
Total Salaries + Pensions 52,513 60,890 67,340
State Owned Revenue 62,503 60,934 60,688
Revenue Expenditure 1,28,569 1,37,475 1,51,148
Total Expenditure 1,63,960 1,73,701 1,85,626
% of SOR 84% 100% 111%
b) Further, it is observed that in comparison to various States of India, the HR
expenditure as a percentage of overall expenditure in Andhra Pradesh is
consistently very high as tabulated below:
Table 3: HR expenditure as per cent of overall expenditure
(Salary + Pension)
% of Total Exp. 2018-19 2019-20 2020-21
AP 32% 35% 36%
Chhattisgarh 31% 33% 32%
Maharashtra 17% 20% 31%
West Bengal 25% 27% 31%
Odisha 27% 29% 29%
Madhya Pradesh 23% 23% 28%
Haryana 30% 29% 23%
Telangana 27% 27% 21%
Study of 7Th CPC report of Government of India and PRC of other States
15. The Committee also examined the 7th CPC report of the Government of India and
the reports of Pay Revision Commissions of other States in order to understand the
procedure and obtain a comprehensive view on the pay revision scenarios followed
by the Government of India and other States.
16. The Committee also undertook a comparative study across GoI, other States with
reference to Andhra Pradesh of key parameters like periodicity of the PRCs,
fitment, HRA slabs and additional quantum of pensions which influence the pay
revision as detailed below.
A. Fitment
a) The Fitment sanctioned over the past few years has been consistently high in
the State. In the 9th PRC, a 39% fitment was sanctioned against the
recommended 27% & in the 10th PRC a fitment of 43% was sanctioned against
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the recommended 29%. Thus, in the last 10 years (2 PRCs), the fitment
sanctioned to the State Government employees was 82%, whereas the fitment
sanctioned for Central Government employees for a period of 10 years (7th
CPC) was only 14.29%.
Table 4: Fitment recommended and sanctioned in AP
Sl. No PRC Fitment Recommended (%) Fitment Sanctioned (%)
1 1974 5 5
2 1986 10 10
3 1993 10 10
4 1999 20 25
5 2005 10 16
6 2010 27 39
7 2015 29 43
b) The fitment recommended in the other States is lower than that of the Andhra
Pradesh. It is also observed that many states are adopting the Central Pay
Commission recommendations as tabulated below:
Table 5: Fitment Comparison - GoI and States
c) The Committee observed that one of the key purposes of constituting PRCs by
the States and by the Government of India is to recommend a suitable fitment
benefit to employees to neutralise inflationary impact on prices of essential
items of consumption effected through the merger of dearness allowance with
basic pay. The procedure supposed to be adopted by the PRCs is also broadly
similar i.e. by following the ILC norms. However, the Committee observed that
the recommendations made by the latest CPC, latest PRC of Telangana and
Andhra Pradesh are at wide variance. The 7th CPC has recommended 14.29%
fitment for a period of 10 years, the Telangana PRC has recommended a 7.5%
fitment for a period of 5 years, whereas the 11th PRC of Andhra Pradesh has
recommended a 27% fitment for a period of 5 years. This wide variation in the
fitment recommendations indicates that the process of pay revision is highly
subjective and open to interpretation.
Government Effective from Fitment (%)
Andhra Pradesh NA 23 (27)
Kerala 1st July 2019 10
Tamil Nadu 1st January 2016 2.57 factor
Central Government 1st January 2016 14.29
Uttar Pradesh 1st January 2016 14.29
Gujarat 1st August 2016 14.29
Rajasthan 1st October 2017 14.29
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B. House Rental Allowance (HRA)
a) The HRA rates in Andhra Pradesh are higher, when compared with other
States and that of the Government of India, as seen in the table below.
Table 6: HRA rates comparison
Population 10th PRC
(Existing)
11th PRC
( Proposed )
Telangana
PRC 7th CPC Karnataka PRC
50 lakhs and above - - 24% 24% 24%
25 lakhs to 50 lakhs - - - 16% -
10 lakhs to 25 lakhs 20% Max.
Rs.15,000
22% Max.
Rs 22,500 17% 16% 16%
5 lakhs to 10 lakhs 20% Max.
Rs.15,000
20% Max.
Rs.20,000 17% 16% 16%
2 lakhs to 5 lakhs 20% Max.
Rs.15,000
20% Max.
Rs.20,000 17% 8% 8%
50,000 to 2 lakhs 14.5% Max.
Rs.15,000
14% Max.
Rs.20,000 13% 8% 8%
Others 12% Max.
Rs.15,000
12% Max.
Rs.17,000 11% 8% 8%
Shifted from
Hyderabad
30% Max.
Rs.20,000
30% Max.
Rs.26,000 - - -
C. Pensions
a) The 11th PRC has recommended to consolidate pension/family pension with
dearness relief as on 1-7-2018. 27% of the basic pension/family pension is to
be treated as fitment benefit.
b) A revised scale of additional quantum of pension starting from 70 years of
age has been suggested as shown in the table below. It is to be noted that the
6th and 7th Central Pay Commissions have recommended additional quantum
of pension only from the age 80 years and above, which is also being followed
by many other states.
Table 7: Additional Quantum of Pension rates
Age of the Pensioner 10th PRC AP
(Existing)
11th PRC AP
(Proposed)
7th CPC
From 70 and less than 75 10% 10% -
From 75 and less than 80 15% 15% -
From 80 and less than 85 20% 20% 20%
From 85 and less than 90 25% 30% 30%
From 90 and less than 95 30% 35% 40%
From 95 and less than 100 35% 40% 50%
100 years and above 50% 50% 100%
.
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17. In view of the above, the Committee observed that the recommendations of the 11th
PRC has to be examined in conjunction with the overall fiscal position of the State,
the welfare measures already extended to the employees, the report of the 7th
Central Pay Commission, the latest PRC report of Telangana and the pay
fixation/fitment followed in other States of the Union viz. Gujarat, Maharashtra,
Uttar Pradesh, etc.
18. After detailed analysis of the salient features of the report of the 11th PRC as per the
framework mentioned above, the Committee of Secretaries has made the following
recommendations regarding implementation of 11th PRC recommendations.
18.1 Pay Scales
11th PRC Recommendation
a) The Master Scale concept is retained with 32 Grades and 83 stages (increased from 81
stages). The Master scale is formulated with the following features:
i. Annual increment to range from 3% of the pay in initial stages to 2.34% at the end.
ii. Periodicity of increase in increment is recommended to be 3 years up to stage 72 in the
Master Scale, 4 years for stage 73-80 and 2 years thereafter.
b) The New Pay Scale is evolved by merging 100% of Dearness Allowance (as on 01-07-
2018) with Basic Pay and adding the fitment benefit.
c) The ‘Minimum Pay’ for the lowest paid employee is to be ₹.20,000/- per month.
d) The ‘Maximum Pay’ in the Master scale is worked out to Rs1,79,000/- p.m. which
represents a Maximum to Minimum ratio of 8.95.
e) In the event of stagnation in pay scale, grant of up to 5 stagnation increments is
recommended.
f) The Master Scale structure recommended is as follows:
20000-600-21800-660-23780-720-25940--780-28280-850-30830-920-33590-990-36560-
1080-39800-1170-43310-1260-47090-1350-51140-1460-55520-1580-60260-1700-
65360-1830-70850-1960-76730-2090-83000-2240-89720-2390-96890-2540-104510-
2700-112610-2890-121280-3100-130580-3320-140540-3610-154980-3900-170580-
4210-179000 (83 stages)
g) The assignment of pay scales to the different categories of employees would be as
recommended by the Commission in Volumes II, III and IV of this Report.
Observations/recommendations of the Committee of Secretaries: The 11th PRC
recommendations are acceptable in view of the enhancement of retirement age from
58 to 60 years and which justifies the key recommendation of increase of stages from
the existing 81 stages to 83 stages. The other key recommendation regarding
enhancement of minimum and maximum pay to Rs. 20,000 and Rs. 1,79,000
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respectively are also found to be reasonable. Therefore, the Committee recommends
to accept the PRC recommendations on pay scale at para 1(a) to 1(g) in toto.
18.2 Fitment
11th PRC Recommendation: The Commission has recommended a fitment benefit of
27 % on Basic Pay. 11th Pay Revision Commission arrived at 23% fitment benefit as per
their calculations based on ILC norms. However, it recommended a 27% fitment
benefit as Interim Relief of 27% is already being given by the State Government. The
11th PRC report reads:
“The fitment benefit should be allowed so as to bridge the gap between the increase in
Minimum Pay, as determined in the previous chapter based on the ILC norms, on 01-
07-2018, over that fixed as on the date of implementation of the last RPS (i.e. 01-07-
2013) less the neutralization of inflationary impact on prices of essential items of
consumption effected through the merger of Dearness Allowance with Basic Pay. Based
on this principle, in the present case the fitment works out to 23%
“Keeping in view the fact that the Government has already approved an Interim Relief
of 27%, which is higher than the fitment percentage arrived at by the Commission based
on the ILC norms, as mentioned above, the Commission deems it proper to recommend
a fitment benefit of 27% “
Observations/recommendations of the Committee of Secretaries: The Committee
observed that the Fitment sanctioned over the past few years has been consistently high
in the State. In the 9th PRC a 39% fitment was sanctioned against the recommended
27% and in the 10th PRC fitment of 43% was sanctioned against the recommended
29%. Thereby, in the last 10 years (2 PRCs), the fitment sanctioned to State
Government employees was 82%, whereas the fitment sanctioned for Central
Government employees for a period of 10 years (7th CPC) was only 14.29%. Further,
the Committee also noted that the Telangana PRC has recommended a 7.5% fitment
for a period of 5 years, whereas the 11th PRC of Andhra Pradesh has recommended a
27% fitment for a period of 5 years. This wide variation in the fitment
recommendations indicates that the process of pay revision is highly subjective and
open to interpretation. Further it is also observed that, increasingly, many states are
dispensing with the constitution of State Pay Commissions and have either adopted or
are moving towards adoption of Central Pay Commission recommendations.
After examining the above, the Committee is of the considered view that the higher
fitments over the years have led to increase in HR expenditure beyond state own
revenues and the State cannot sustain five yearly periodic pay revisions with
abnormally high fitment benefits. Therefore, the Committee recommends to adopt a
fitment of 14.29% as followed by the 7th Central Pay Commission.
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18.3 Date of Effect of New Pay Scale
11th PRC recommendation: The new pay scales may come into effect from 1-7-2018.
Government may however take a view regarding the date from which the monetary benefit would
accrue keeping in view its resource position and the various demands thereon.
Observations/recommendations of the Committee of Secretaries: The Committee
recommends the following on Date of effect of New Pay Scale,
a) The Revised Pay Scales 2021 (RPS 2021) may be implemented w.e.f. 1-7-2018 as
recommended by the 11th PRC.
b) The Revised Pay Scales for PTD employees (erstwhile APSRTC employees) may
be implemented w.e.f. 01-01-2020.
c) The monetary benefit may be implemented w.e.f. 01-10-2022 i.e. salary for the
month of October 2022 payable in November 2022.
d) No arrears will accrue since the Interim Relief will continue to be paid till the
implementation of the monetary benefit.
18.4 Dearness Allowance
11th PRC recommendation
a) The existing practice of revising the Dearness Allowance (DA) twice a year, on 1st January
and 1st July, in tandem with the sanction of DA by the Government of India may be
continued.
b) Since the Central rates of DA are based on the DA merged scales of 1-1-2016 while in the
State DA is recommended to be fully merged on 1-7-2018, the Commission recommends a
conversion factor of 0.91 for sanction of DA from 1-1-2019. It means that for every 1 %
increase in DA sanctioned by the Government of India, the DA to be sanctioned by the State
to its employees would be 0.91% starting from 1-1-2019.
Observations/recommendations of the Committee of Secretaries: The
recommendation of the PRC is only a continuation of the present policy of
sanctioning additional DA twice a year.
The conversion formula to be adopted for release of DA based on Central DA has
been worked out by PRC duly taking into the account the DA that exists as on
01.7.2018. The Committee recommends that the Conversion factor of 0.91% for
sanction of DA from 1-1-2019 may be accepted in toto.
18.5 House Rent Allowance
11th PRC Recommendation
a) HRA may be allowed at the following rates
(i) @ 30% of basic pay subject to a ceiling of ₹.26,000/- p.m. for employees
shifting from Hyderabad on bifurcation of State.
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(ii) @ 22% of pay basic pay subject to a ceiling of ₹.22,500/- p.m. in cities with
population above 10 lakh
(iii) @ 20% of pay basic pay subject to a ceiling of ₹.20,000/- p.m. in cities with
population of above 2 lakh and up to 10 lakh.
(iv) @ 14.5% of pay basic pay subject to a ceiling of ₹.20,000/- p.m. in cities
with population of above 50,000 and up to 2 lakh
(v) Rest of the employees @12% subject to a limit of ₹.17,000 p.m.
The Commission however does not concur to the view of certain sections of employees
that the same rate of HRA should be allowed for the staff recruited/ posted newly
after shifting of the capital, since such employees have faced no unexpected disruption
and have joined at Amaravati with full knowledge of all the extant service conditions;
b) Additional HRA in lieu of rent free accommodation is retained at 8 % of basic pay,
but the monetary ceiling is recommended to be increased from ₹.2,000/- to ₹.2,600/-
p.m.
Observations/recommendations of the Committee of Secretaries: The Committee
examined the structure of HRA being followed by the Central Government and
other States like Tamil Nadu, Karnataka, Rajasthan, etc. The 7th CPC followed a
two-fold approach to arrive at appropriate rates of HRA. 1. It compared the rise in
housing compensation with the cost of housing in major category cities. 2. It
compared de novo the HRA after the rise in basic pay proposed with representative
house rents in major category cities. The 7th CPC safely concluded that the rise in
housing compensation has largely kept pace with the rise in rental values of all
categories of cities.
In view of the above, the Committee recommends to adopt the HRA slabs being
followed by Government of India (7th Central Pay Commission) as presented below.
• Employees in cities having a population up to 5 lakh: 8% of basic pay
• Employees in cities having a population from 5 to 50 lakh: 16% of basic pay
• Employees in cities having a population more than 50 lakh: 24% of basic pay
The Committee also observed that the benefit of higher HRA was accorded for a
limited period to mitigate the immediate impact of the relocation of employees from
Hyderabad as a temporary measure for a limited period. The continuance of the
same after the elapse of a period of more than 6 years may not be reasonable.
Therefore, the Committee recommends to discontinue the same.
The Committee noted that there may be a likelihood of reduction in the gross pay
of some employees due to revision of the HRA slabs. Therefore, the Committee
recommends to protect the gross pay of such employees as on the date of
implementation of monetary benefit to avoid any financial loss and inconvenience.
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This may be done by granting Personal Pay (PP) equivalent to the differential
amount.
18.6 City Compensatory Allowance
11th PRC Recommendation: For the purpose of grant of City Compensatory Allowance, the
Commission has recommended two slab rates, one for Visakhapatnam and Vijayawada and the
second for the 12 other Municipal Corporations. The quantum of allowance is increased for all
the pay ranges (Municipal Corporations of Visakhapatnam and Vijayawada ₹400-1000 and
other Municipal Corporations ₹,300-750).
Observations/recommendations of the Committee of Secretaries: The Committee
noted that the Government of India and several other States have discontinued the
concept of City Compensatory Allowance (CCA). The 6th CPC while recommending
the abolition of CCA has noted that “the classification of regions for the purposes of CCA is
mainly based on the size of the population. It has been contended that size of the population
cannot be an adequate index of the expensiveness of the localities. The Commission also notes
that the Consumer Price Index numbers measure the changes in the price level over a period of
time at a given place and do not indicate variations in the price levels from place to place at one
time. The index, therefore, does not provide any criteria for classifying cities on the basis of relative
expensiveness. This show that CCA does not really address the problem of providing proper
compensation for relative expensiveness of a particular region/city. The Commission also notes
that, apart from the problems of Housing and Transportation, larger cities and towns have much
better facilities than smaller places. As such, no rationale may now exist for compensating any
other factor other than accommodation and transportation in order to meet the high cost of living
in large cities”
In view of the above, the Committee recommends to discontinue the CCA in Andhra
Pradesh as well in line with the practice being followed by Government of India.
18.7 Advance Increments
11th PRC Recommendation: The Commission has recommended not to grant in the normal
course any special increment for possessing higher qualifications.
Observations/recommendations of the Committee of Secretaries: The Committee,
after examination of the recommendation, proposes that the same may be accepted in
toto.
18.8 Loans and Advances
11th PRC Recommendation
a) The Commission has recommended that the Government tie-up with financial institutions
for grant of House Building/Personal Conveyance loans and link up repayment to salary
disbursement. Back-ended subsidy of 2.5% has been recommended on such loans;
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b) Pending such tie up, revised eligibilities, amounts and floating rate of interest linked to Repo
Rate have been recommended in respect of all types of advances;
c) It is recommended that the eligibility for ‘Advance for purchase of Personal Computer’ may
be increased to a maximum of 3 times during the entire service career subject to a minimum
gap of 7 years between the purchase of two successive computers and complete repayment of
previous computer advance.
Observations/recommendations of the Committee of Secretaries: The Committee
recommends that the Government may facilitate tie up of loans with financial
institutions for grant of House Building/Personal Conveyance/Personal Computer
loans and link up repayment to salary disbursement, duly negotiating the most
favourable interest rates for the employees.
Till the above tie-up is made, the Committee proposes that the existing arrangement
may be continued.
18.9 Leave Benefits
11th PRC Recommendation
a) Additional 5 days Casual Leave has been recommended in favour of non-teaching women
employees on par with the teaching women employees;
b) Child Adoption Leave up to 180 days is recommended for woman employee having less than
two surviving children if she legally adopts a child up to one year of age. Subject to the same
conditions, paternity leave up to 15 days may be extended to ‘single’ male employees
(unmarried/widower/divorcee) within a period of 6 months of child adoption;
c) Child Care Leave has been recommended to be increased to 180 days in a maximum of three
spells. It may also be extended to ‘single’ male employees (unmarried/widower/divorcee);
d) Special Casual Leave of up to 7 days in a year is recommended for orthopedically challenged
employees needing to change prosthetic aides. Same duration of Special Casual Leave has
also been recommended for Nursing staff working in high risk ward;
e) Revised rates have been prescribed for Ex-gratia Allowance payable to the employees who are
granted extraordinary leave for the treatment of certain diseases.
Observations/recommendations of the Committee of Secretaries: The Committee
observed that 11th PRC has recommended additional leaves for women and
orthopedically challenged employees which are justified and progressive in nature.
Hence, the Committee recommends to accept the recommendations of 11th PRC on
Leave Benefits in toto.
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18.10 Medical Benefits
11th PRC Recommendation
a) In order to ensure financial sustainability of EHS, the quantum of employees’ contribution
should be increased in steps over a period of time along with similar step-up in the
Government contribution;
b) The pending claims of the network hospitals should be settled expeditiously by releasing
additional funds to the Arogyasri Trust;
c) The facility of Annual Health check-up may be extended to the Pensioner and his/her spouse;
d) The Dr. YSR Arogyasri Trust may hold talks with a few hospitals in Hyderabad, Bangalore
and Chennai, empanelled by the concerned State Governments, for inclusion under the EHS;
e) Medical Allowance to Service Pensioners / Family Pensioners is recommended to be
enhanced to ₹.500/- p.m.
Observations/recommendations of the Committee of Secretaries: The Committee,
after examination of the recommendation, proposes that the same may be accepted in
toto.
18.11 Special Pays
11th PRC Recommendation: The quantum/rate of Special Pay for the existing category of
employees has been recommended to be suitably enhanced. In respect of a few categories, we have
recommended its discontinuance.
Observations/recommendations of the Committee of Secretaries: The 11th PRC has
inter alia recommended constituting a separate Committee of senior secretaries and HR
experts by the Government to review granting of special pay to the employees and
pending the same 11th PRC recommended increase in rates of special pay in certain
cases. The Committee has observed that the approach of the 11th PRC is adhoc as the
recommendations are not in consonance with the ToR and therefore opines that a
comprehensive view needs to be taken so that there is no discrepancy in the grant of
special pays. Therefore, the Committee accepts the recommendation of 11th PRC to
the extent of constitution of a separate committee of senior secretaries and HR experts
to examine the issue of Special Pay and the existing guidelines on special pays are
recommended to be continued till the recommendations of the aforementioned
committee are finalised.
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18.12 Other Allowances
11th PRC Recommendation
a) Mileage Allowance is recommended to be increased to ₹.15.50 per k.m. for petrol driven
vehicles, ₹.11.50 per k.m. for diesel driven vehicles and ₹.6.40 per k.m. for motor cycles/
scooters.
b) Rates of Daily Allowance and Lodging Charges may be enhanced by 33 % to ₹.300-600 per
day for tours inside the State and ₹.400-800 per day for tours outside the State
c) For the purpose of payment of lodging charges a fresh classification of places, inside and
outside the State, has been drawn up and lodging charges have been fixed from ₹.300/- to
₹.1700/- per day.
d) Conveyance charges to Court Masters and Personal Secretaries to Hon’ble Judges of A.P.
High Court/ APAT has been increased to a maximum of ₹.5000/- per month.
e) Fixed Travelling Allowance enhanced to a maximum of ₹.1700/- per month from the
existing ₹.1200/- per month. The rates applicable for minimum 20 days touring in a month
have been rationalised pro rata compared to the rates fixed for minimum 15 days touring in
a month. Several new categories of employees from the Departments of Animal Husbandry,
Cooperation, Sericulture, School Education and Panchayatiraj/Tribal Welfare Engineering
have been recommended to be added to the list to get FTA.
f) The limit for Tuition Fee reimbursement has been enhanced to ₹.2500/- per annum per
child, subject to a maximum of two children.
g) Funeral Charges of deceased employee has been recommended for increase to ₹.20,000/-.
h) Special Compensatory Allowance payable for working in the Tribal areas has been increased
from the existing minimum and maximum of ₹.500/- per month and ₹.1275/- per month
respectively to ₹. 700/- per month and ₹.1800/- per month.
i) Substantial increases have been suggested in Uniform Allowance, Uniform Maintenance
Allowance and Stitching Charges.
j) Enhanced admissibility of Risk Allowance has been suggested and new categories have been
added to the existing list of employees eligible for ‘Risk Allowance’ in the Departments of
Animal Husbandry and Forest.
k) ‘Ration Allowance’ has been recommended at enhanced rates. New categories have been
suggested for inclusion in the Insurance Medical Service and HM&FW departments.
l) Increases have been recommended in ‘Emergency Health Care Allowance’, PG Degree and
Diploma Allowance, Non Private Practice Allowance, Tribal Allowance and Rural
Allowance for several categories of employees in Medical related Departments.
m) ‘Readers Allowance’ to Visually Challenged teacher and lecturers is recommended to be
enhanced by 33 percent, up to a maximum of ₹. 1200/- per month.
n) ‘Delhi Allowance’ / ‘Special Compensatory Allowance’, to the staff working in the Andhra
Pradesh Bhavan at New Delhi, has been recommended to be enhanced to 15% of Basic Pay
subject to a maximum of ₹.5000/- per month.
o) ‘Special Gratuity Allowance’ to drivers of AP Bhavan has been recommended to be increased
to ₹.30/- per hour subject to a ceiling of 100 hours in a month.
p) ‘Conveyance Allowance’ to physically challenged employees has been enhanced to 10% of
Basic Pay subject to a maximum of ₹.2000/- per month.
Observations/recommendations of the Committee of Secretaries: The Committee,
after examination of the recommendation, proposes that the same may be accepted in
toto especially since it is beneficial to women and differently abled employees and are
progressive in nature.
18.13 Pensionary Benefits
11th PRC Recommendation: In respect of pensionary benefits our recommendations are the
following:
a. To consolidate pension/family pension with dearness relief as on 1.7.2018. 27% of the basic
pension/family pension is to be treated as fitment benefit.
b. To continue the existing provision of full pension after 33 years of qualifying service with 5
years of service weightage. Similarly, no change is recommended in the formula for fixation
of pension/family pension.
c. A revised scale of additional quantum of pension starting from 70 years of age has been
suggested
d. If a government servant dies while in service, enhanced family pension is recommended to be
paid to his dependants for a period of up to 10 years without any upper age limit. In case of
death after retirement the enhanced family pension should be payable for a period of seven
years or up to the date on which he would have attained 67 years, had he survived, whichever
is earlier.
e. The conditions of 45 years age limit in respect of unmarried/ widowed/ divorced daughter
of family pensioners may be rescinded and the stipulation regarding having children may be
altered so as to exclude widowed/divorced daughter having a child who has attained 25 years
of age or started earning.
f. To allow Dearness Relief on both the basic pensions (Service and Family) received by the
same pensioner.
g. The quantum of minimum pension/ family pension is recommended to be increased to
₹.10000/- p.m.
h. The maximum amount of Gratuity payable at the time of retirement is recommended to be
enhanced from ₹.12 lakh to ₹.16 lakh.
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i. The maximum limit for Death Relief amount on the death of a service pensioner/ family
pensioner is recommended to be enhanced to ₹.20,000/-.
j. The financial assistance is recommended to be increased to the level of minimum service
pension/family pension (₹.10,000 per month) with dearness relief thereon after 1.7.2018.
k. The existing ceiling limit of commutation at 40% of basic pension and provision regarding
restoration of commuted portion of pension after 15 years should be continued.
Observations/recommendations of the Committee of Secretaries: The Committee
recommends to accept the 11th PRC recommendations on pensionary benefits as
mentioned in 13(b), 13(d), 13(f) to 13(k) in toto.
Regarding recommendation on fitment i.e. 13(a), the Committee recommends to
accept to consolidate pension/family pension with dearness relief as on 1.7.2018.
However, the committee recommends 14.29% of the basic pension/family pension to
be treated as fitment benefit.
Regarding recommendation on additional quantum of pension (AQP) i.e., 13 (c), the
Committee observed that the intention of providing AQP is to mitigate the additional
expenditure on healthcare for the pensioners who are in advanced age. The GoI has
introduced AQP in the 6th CPC i.e. from the year 2006 only for the pensioners who are
aged 80 years and above in different slabs duly considering the additional expenditure
towards healthcare with increase in age beyond 80 years. The same age criterion was
continued in the 7th CPC also. However, in contrast, basing on the recommendation
of the 9th PRC in the year 2008 in the State of Andhra Pradesh, the AQP was
introduced for the pensioners older than 75 years itself duly modifying the AQP slabs
also. The entry age for AQP was further reduced to 70 years in 10th PRC along with
rates and slabs. These changes adopted by the Govt of AP has led to substantial
additional burden on state exchequer.
The Committee observed that the entry age of 80 years and the slabs being
implemented for AQP by the GoI are based on the reasoning that the older pensioners
require a better deal because their needs, especially those relating to health increase
with age. Keeping in view the general improvements in the nutritional standards,
extensive availability of healthcare facilities including super speciality care and the
support given by the Government of AP in the form of EHS and additional medical
allowance to all the pensioners, the Committee is of the view that the AQP slabs
followed by GoI shall be adopted in toto by the Government of Andhra Pradesh and
recommends the adoption of the same.
The Committee also noted that there is likelihood that the adoption of GoI slabs for
AQP may reduce the gross pension to the pensioners in the age range of 70 to 79 years.
Therefore, the Committee recommends to protect the gross pension of such pensioners
as on the date of implementation of monetary benefit. This may be done by granting
Personal Pension (PP) equivalent to the differential amount.
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Regarding the recommendation on rescinding the age limit of 45 years in respect of
unmarried/ widowed/ divorced daughter i.e., 13(e), the Committee is of the view of
that under normal circumstances no person shall be dependent on their parents even
after the age of 45 years. Therefore, extending pensionary benefits irrespective of age
limit shall be extended only to those dependent children of government
employees/pensioners who are physically/mentally disabled. Therefore, the
Committee recommends that the 11th PRC recommendation of rescinding the age limit
of 45 years in respect of unmarried/ widowed/ divorced daughter i.e., 13(e) may not
be accepted.
18.14 Work Charged Establishment
11th PRC Recommendation: The scales of pay of Work Charged establishment have been
rationalised keeping in view the qualifications prescribed at the entry level and the service
conditions.
Observations/recommendations of the Committee of Secretaries: The Committee,
after examination of the recommendation, proposes that the same may be accepted in
toto.
18.15 Full Time Contingent Employees and Contract Employees
11th PRC Recommendation
i. The Commission recommends a remuneration of ₹.20,000/p.m. (i.e. the minimum pay of
Last Grade Employees in the proposed RPS) plus DA to the Full-time Contingent/Daily
Wage/ Consolidated Pay/NMR employees whose services have not been regularized and
who are already drawing a remuneration of ₹.13,000/p.m. + DA in the 2015 RPS.
ii. In respect of Contract employees also the remunerations may be fixed at the minimum of the
time scale, in the now revised pay scale, of the equivalent category in regular employment in
the Government.
iii. The revision in remuneration in respect of these employees may be given effect to
simultaneously (with effect from the same date) with the regular Government employees.
Observations/recommendations of the Committee of Secretaries: The Committee,
after examination of the recommendation, proposes that the same may be accepted in
toto.
18.16 Home Guards
11th PRC Recommendation
i. They may be paid Daily Allowance at the rate of 1/30th of the Minimum Pay (in the Revised
Pay Scale recommended in this report for the Police Constables) plus Dearness Allowance
thereon at the rates applicable to the Government employees from time to time.
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ii The Home Guards may be allowed to draw TA/DA at the rates applicable to Police
Constables when they are sent on bandobaust duty to a place which is more than 8 km. from
their normal place of duty.
Observations/recommendations of the Committee of Secretaries: The Committee
has noted that the fixation of pay of Home Guards is not in the ToR of 11th PRC. By
making recommendations regarding the revision of honorarium of the Home Guards,
the 11th PRC has traversed beyond its jurisdiction.
Further, the Committee has observed that the daily duty allowance to Home Guards
was only Rs. 400 per day up to 2018 which was increased Rs. 600 per day w.e.f
18.06.2018 and further increased to Rs. 710 per day w.e.f 12.10.2019. Thus, the daily
duty allowance for home guards has already increased by 77.5% within last 2-3 years.
Therefore, the Committed is of the view that there is no case for any further
enhancement of daily duty allowance for home guards.
In view of the above, the Committee recommends that the recommendation of the 11th
PRC w.r.t. home guards may not be accepted.
18.17 Automatic Advancement Scheme
11th PRC Recommendation
The existing scheme of AAS may continue with the following modifications:
(1) The present SPP Scale II/SAPP ScaleII, eligible after 24 years of service in the same post,
may be rechristened as SPP Scale IIA/SAPP ScaleIIA
(2) An employee, on completion of 30 years of service in a particular post, may be granted one
increment in the SPP Scale IIA/ SAPP Scale IIA, as the case may be, which shall be called
the Special Promotion Post Scale II-B/ Special Adhoc Promotion Post Scale II-B.
(3) The benefit of Automatic Advancement Scheme may be continued up to and inclusive of
Grade25 in the revised scales i.e., ₹.76730-162780.
Observations/recommendations of the Committee of Secretaries: The Committee,
after examination of the recommendation, proposes that the same may be accepted in
toto.
18.18 Human Resources to Meet Contemporary Requirements of Governance
11th PRC Recommendation
a. Each department should draw up a Recruitment Plan, updated on annual basis, containing
details of existing vacancies in staff and officers, vacancies likely to arise in future due to
retirement/ promotion etc. and phase wise recruitment to be made through APPSC / DSC
or through Contract.
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b. In future Contract staff may be appointed only against positions which are temporary in
nature and not against permanent positions. Those of the qualified Contract employees, who
have been appointed on merit after following transparent and competitive recruitment process,
may be regularised in service against available vacancies in permanent posts.
c. Outsourcing should be only of services such as cleaning and maintenance, security/ watch
and ward, bill collection, managing reception desks, supply of vehicles/drivers etc. These
functions should be outsourced to Agencies on competitive tendering and in future no
individual personnel should be hired on outsourcing basis.
d. Gaps in training should be identified, department wise, by a Committee constituted under
the auspices of the Andhra Pradesh HRD Institute, Bapatla and budgetary support provided
for planning and conducting induction/ refresher training programmes for different categories
of employees.
e. General Administration (Services) Department may constitute a Committee to review, in a
time bound manner, the Service Rules of all the departments in consultation with the
respective Heads of Departments. While doing so adequate attention should be given to the
aspect of career planning.
f. Executive staff at the field level may be provided with mobile phones with CUG connectivity
to quicken the process of decision making, problem solving and to monitor progress.
g. Increasing number of ‘Government to Citizen’ (G2C) services should be brought under the
umbrella of ‘Mee Seva’.
Observations/recommendations of the Committee of Secretaries: The Committee
recommends that the observations made by PRC on “Human Resources to Meet
Contemporary Requirements of Governance” may be examined and acted upon
appropriately as and when the polices are formulated concerning the same.
19. Other Recommendations of the Committee of Secretaries: The Committee further
made the following recommendations.
19.1 Shifting to Central Pay Commissions
i. The Government of India has historically appointed Central Pay Commissions
as multi-member bodies with strong secretarial support staff. Such
arrangements have enabled the Commissions to benefit from the experience,
expertise, scholarly knowledge of members & staff, which contribute towards
insightful recommendations, duly factoring in financial and economic
intricacies while determining the fitment & other benefits.
ii. The recommendations of the Central Pay Commissions, based on multiple
inputs & rigorous processes are on a firmer footing.
iii. It has been observed that, increasingly, many States of the Union are adopting
the Central Pay Commission’s recommendations for their employees.
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iv. In view of the reasons stated supra, the Committee recommendsthat, as is done
by several other States, the Government of Andhra Pradesh may also align the
subsequent revision of pay and pensions of the employees/pensioners with that
of the Central Pay Commissions. The practice of constituting State Pay
Revision Commissions may be discontinued.
19.2 Village/Ward Secretariat
The Committee noted that the subject relating to pay/revision of the pay of
Village/Ward Secretariat employees, was not under the scope of the PRC, as this
category of employees did not exist at time of the constitution of the 11th PRC, that
this cadre was created subsequently with consolidated pay of Rs 15,000 per month
& service rules were framed for (17) of the (19) cadres.
The Committee felt that as Village/Ward Secretariat employees play an important
role in governance at the cutting-edge level, & though the matter relating to the
pay/revision of pay of Village/Ward Secretariat employees, was not under the
scope of the PRC, it would not be desirable to leave the matter unaddressed as this
would lead to unwarranted anxiety among these employees.
Therefore, after careful examination of the matter, the Committee considered it just
& proper to recommend that the pay scales as per the service rules issued for the
various cadres of the Village/Ward Secretariat employees be confirmed as the pay
scales of the concerned cadres for the purpose of the 11th PRC.
The regularisation of the Village & Ward Secretariat employees at these scales
would lead to an additional expenditure of around Rs 1,800 crore on an annual
basis upon the State exchequer.
The pay scales are as mentioned in Table 8.
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Table 8: Pay for Village & Ward Secretariat Employees
S.No Designation Scale
1 Panchayat Secretary Grade V 15030-430-15460-470-16870--510-
18400-550-20050-590-21820-640-
23740-700-25840-760-28120-820-
30580-880-33220-950-36070-1030-
39160-1110-42490-1190-46060
2 Panchayat Secretary Grade VI
(Digital Assistant)
14600-430-15460-470-16870--510-
18400-550-20050-590-21820-640-
23740-700-25840-760-28120-820-
30580-880-33220-950-36070-1030-
39160-1110-42490-1190-44870
3 Mahila Police
4 Animal Husbandry Assistant
(AHA)
5 Fisheries Assistant
6 ANM
7 Engineering Asst
8 Village Agriculture Assistant
(Gr-II)
9 Village Horticulture Assistant
10 Village Sericulture Assistant
11 Village surveyor
12 VRO
13 Welfare assistant
14 Ward Administrative
Secretary
15030-430-15460-470-16870--510-
18400-550-20050-590-21820-640-
23740-700-25840-760-28120-820-
30580-880-33220-950-36070-1030-
39160-1110-42490-1190-46060
15 Ward Amenities Secretary
14600-430-15460-470-16870--510-
18400-550-20050-590-21820-640-
23740-700-25840-760-28120-820-
30580-880-33220-950-36070-1030-
39160-1110-42490-1190-44870
16 Ward Education & Data
processing Secretary
17 Ward Planning & Regulation
Secretary
18 Ward Sanitation &
Environment Secretary
19 Ward Welfare & Development
Secretary
19.3 Cadre Rationalisation
The Committee also considered that the there is an imminent need to streamline the entire
work force of the State across Departments and align the existing human resources of all
Departments in tune with contemporary requirements of the State, & the Committee has
recommended to take up the following activities in a time-bound manner.
a) Cadre Rationalisation-Formulating criteria to determine the nature of recruitment
to all cadres, eliminating/suppressing redundant cadres & posts, and redeploying
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people currently working in those cadres, formulate guidelines for
implementation of the same by all Departments, including suppression of posts
and the creation of supernumerary posts, as required.
b) Study the existing system of engaging personnel on contract basis and formulate
a policy to standardize contract employment practices across all Departments,
HoDs & other Autonomous Organizations.
c) Study the existing system of compassionate appointments, evaluate its
performance till date, costs and benefits, and formulate a policy that meets its
objective of supporting the family of deceased government employees of certain
categories.
20. 11th PRC Recommendations on Public Transport Department (APSRTC)
20.1 Pay Scale: The Commission is of the view that a proper and full integration of the former
APSRTC employees in the Government service, on their absorption in PTD with effect from 01-01-
2020, presupposes that they have uniform pay structure and pay scales with that of the other
Government employees. Accordingly, the Commission recommends that the Revised Master Scale
comprising of 32 Grades and 83 stages, suggested by us in Vol-I of this Report, be made applicable to
the PTD employees also.
20.2 Assignment of equivalent Government Pay Scales: Each category of PTD employee
has been assigned a corresponding pay scale in RPS-2018. The Commission has also recommended
that the employees drawing the 9 or 18 year Stagnation Grade pay scales in the APSRTC may be
assigned the Special Grade Post Pay Scale and Special Promotion Post Scale I-B/ Special Adhoc
Promotion Post Scale I-B (under the Automatic Advancement Scheme-AAS) corresponding to the
RPS- 2018 scale assigned by this Commission against the basic post held by the employee in APSRTC
RPS-2017.
20.3 Principle of pay fixation in RPS-2018 with effect from 01-01-2020: The Commission
has recommended that the pay fixation of the PTD employees, who were in service prior to 01-07-
2018, be done in a two-step process i.e. first by fixing the pay notionally in RPS-2018 as on 01-07-
2018 and then by re-fixing the pay in RPS-2018 as on 01-01-2020. For the first step the Commission
has recommended a fitment benefit of 1.6% % on the Basic Pay as on 01-07-2018 in the APSRTC
RPS-2017. A prescription has also been made in respect of pay fixation of employees who have joined
duty in the APSRTC between 01-07-2018 and 01-01-2020.
20.4 Dearness Allowance: Dearness Allowance (D.A.) with effect from 01- 01-2020 (date of
absorption) shall be the same as the Dearness Allowance fixed by the State Government for all its
employees following the prescription in Chapter-7 of Vol-I of our Report.
20.5 House Rent Allowance (HRA): The same rates of HRA, as already recommended for the
State Government employees in Chapter-7 of Vol-I, are recommended for application to the PTD
employees also with effect from 01-01-2020. In addition, we have recommended that PTD employees,
whose work stations have been fixed at Hyderabad, Bengaluru and Chennai, shall also be eligible to
draw HRA @ 30% of Basic Pay subject to a maximum of ₹.26,000/- per month
20.6 City Compensatory Allowance (CCA): The Commission has recommended for the PTD
employees the same rates of CCA as those recommended for the other State Government employees
stationed in different Municipal Corporation areas. Separates rates have also been indicated for the
PTD employees head quartered in Hyderabad, Bengaluru and Chennai Municipal Corporations.
20.7 Other Allowances, Special Pay, Perquisites and Incentives: The other Allowances,
Special Pay, Perquisites and Incentives etc. have been rationalised after examining the rationale for
extending such benefits.
20.8 Protection of total emoluments of PTD employees: In case, for any PTD employee the
gross total emoluments (sum total of Pay and Allowances), as fixed on 01-01-2020 in the RPS-2018,
falls short of his/her total emoluments in the existing APSRTC scale, such shortfall may be treated
as Personal Pay to be absorbed in future increases in pay and allowances.
20.9 Automatic Advancement Scheme (AAS): The Commission recommends that the PTD
employees may be extended the benefits of AAS, in lieu of the existing Stagnation Grade Scale Scheme
of APSRTC, in the following manner:
a) The benefit of AAS Scales may be given on absorption into Government Service i.e. 01-01-
2020, on satisfying the eligibility conditions and following the guidelines stipulated under
the Scheme;
b) As in the case of other Government employees, the benefit of Automatic Advancement
Scheme may be allowed up to and inclusive of Grade25 (₹.76730-162780) in the revised
scales;
c) The total qualifying service in any category put in by a PTD employee i.e., including the
APSRTC service prior to 01-01-2020 and Government service from 01-01-2020, may be
counted towards determining eligibility for AAS Scales.
20.10 Other Service Benefits: All service benefits including leave benefits, advances, medical
facilities and special benefits for Differently Abled Employees, Compassionate Appointment Scheme,
Insurance Coverage under APGLI/GIS etc, which are available to the other Government employees,
may be made applicable to the PTD employees also with effect from 01-01- 2020 (date of absorption).
Similarly, the past regular service rendered in the APSRTC should be counted for all purposes on
absorption in the Government.
20.11 Pensionary Benefits: PTD employees absorbed in Government service on 01- 01-2020, be
given an option to either continue with EPS-95 or join the CPS. The PTD employees, who opt for
CPS, will automatically be covered under the DCRG Scheme applicable to the other Government
employees. In case, however, they opt to continue under EPS-95, they may be allowed get the benefit
under the APSRTC Gratuity formula as before.
20.12 Other Retirement Benefits: It is recommended that the PTD employees, who are absorbed
into Government service on 01-01-2020, should be entitled, after their retirement, to the following
other benefits on par with other Government employees:
a) Encashment of accumulated Earned Leave
b) Coverage under EHS
c) Death Relief
d) Medical Allowance
e) Benefits applicable on voluntary retirement/retirement on medical grounds
Observations/recommendations of the Committee of Secretaries: The Committee, after
examination of the recommendations, proposes that the same may be accepted in toto
with the exception of those relating to fitment, HRA and CCA.
In respect of the recommendations made by 11th PRC for PTD employees relating to
fitment, HRA, and CCA, the Committee of Secretaries is of the view that the
recommendations made by it with respect to fitment, HRA, and CCA for Government
employees may be adopted for PTD employees as well so that there is uniformity with
Government employees post the full integration of former APSRTC employees in to PTD
w.e.f. 1-1-2020.
Further, the Committee also recommends that the Revised Pay Scales for PTD employees
(former APSRTC employees) may be implemented w.e.f. 01-01-2020.
Sd/- Sd/- Sd/-
Dr. K.V.V. Satyanarayana Shashi Bhushan Kumar Shamsher Singh Rawat
Secretary, Finance (Budget) Principal Secretary (Services) Principal Finance Secretary
(Member) (Member) (Convenor)
Sd/- Sd/-
Ajeya Kallam Dr. Rajat Bhargava
Principal Advisor to CM Special Chief Secretary, Revenue
(Special Invitee) (Member)
Sd/-
Dr. Sameer Sharma
Chief Secretary to Government
(Chairperson)
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