Implementation of the recommendations of the Sixth Central Pay Commission as accepted by the Central Government – revision of pay scale of the employees of the Corporation.

EMPLOYEES’ STATE INSURANCE CORPORATION  `PANCHDEEP BHAWAN’, C.I.G. ROAD, NEW DELHI – 110 002



Subject : Implementation of the recommendations of the Sixth Central Pay Commission as accepted by the Central Government – revision of pay scale of the employees of the Corporation. 


The ESI Corporation in its 144 th  meeting held on 09-09-2008 has given approval to amendment  of the First Schedule of the ESIC (Staff and Conditions of Service) Regulations, 1959 giving effect to the  implementation of the 6 th  Central Pay Commission’s recommendations in the ESI Corporation, as  accepted by the Central Government.  
2. In accordance with the said approval of the ESI Corporation, the revised pay bands as well as  Grade Pay corresponding to existing scales of pay applicable to various categories of employees of ESI Corporation are given at  Annexure – 1 & 2.    

3. A copy of the Central Civil Services (Revised Pay) Rules, 2008 as notified by the Central Govt.  vide Ministry of Finance (Department of Expenditure) Notification No.GSR-622(E) dated 29.08.2008  (may please be downloaded from Government portal) may be referred to for the purpose of  fixation of pay in the revised pay scales (i.e. Pay Band + Grade Pay).  The revised scales of pay  alongwith the CCS (Revised Pay) Rules, 2008 may kindly be brought to the notice of all employees  immediately. The employees may exercise their options in writing in the prescribed proforma given at  Annexure – 3 within three months of the issue of this Memorandum as per Rule 5 & 6 of the CCS  (RP) Rules, 2008. Option once exercised shall be final. It should be ensured that the contents of this Order are noted by all employees including those who are on leave and those who have since retired  from the services of the Corporation after 01.01.2006 so that, the need for extending the date for  exercising the option does not arise. 
 4. Following guidelines are given for expediting the fixation of pay in the revised pay structure  regulating the payment of arrears of pay as a result of implementation of the recommendations of the  6 th  Central Pay Commission.  
(i) Those employees, who give timely option to switch over to the revised pay bands, pay may be fixed  in the applicable Pay Bands plus Grade Pay.  Pay and allowances for the month of September, 2008  may be drawn and paid on the basis of revised pay structure and the applicable Allowances, after  deduction of enhanced subscription to the Provident Fund, which will be calculated with  reference to the revised  basic pay (Pay drawn in the prescribed pay band plus the  applicable Grade Pay). In so far as the employees who have joined on or  after 01.01.2004 are  concerned, the enhanced deduction under the New Pension Scheme will be calculated w.r.t. the  revised Basic Pay and DA thereon.  Here, the definition of `Basic Pay’ will be the same as above.  
(ii) In terms of CCS (Revised Pay) Rules, 2008, there shall be a uniform date of increment i.e. 1 st  July of  the year, after implementation of the revised pay structure.  For drawing the annual increment, the  rule position stated in the respected CCS (RP) Rule, 2008 may be referred to.  For fixation of pay,  table enclosed with Government of India  O.M. No. 1/1/2008-IC dated 30.08.2008  (may  please be downloaded from Government portal).  In order to ensure correct and  systematic fixation of pay in the revised pay structure, a proforma for the purpose (Statement of  Fixation of Pay) is enclosed (Annex-II) of the O.M. dated 30.08.2008.  The statement should be  prepared in triplicate and one copy thereof should be pasted in the Service Book of the Government  servant concerned and another copy made available to the concerned accounting authorities for  post-check. Attentions is also invited in this connection to the Government decision contained at      Sl. No. 2(iii) of the Part ‘A’ of the  Resolution No. 1/1/2008-IC dated 29.08.2008  (may  please be downloaded from Government portal) regarding the adjustment of the  instalments of Dearness Allowances paid  between 01.07.2006 and 30.06.2008.  
(iii) Bills may be drawn separately in respect of arrears of pay and allowance for the period from 1 st January, 2006 (or the date opted by the employee) to 31 st  August, 2008.  The aggregate arrears,  computed after deduction of subscription to GPF and NPS on revised Basic Pay, may be paid in two  installments,  the first one being restricted to 40% of the aggregate arrears, to be paid in the  current financial year. The remaining 60% arrears will be paid during the next financial year 2009- 2010, for which separate order will follow.  DDOs will ensure that action is taken simultaneously in  regard to Corporations’ contribution towards enhanced subscription of New Pension Scheme.  Income Tax, as may be due, will be deducted before payment of arrears.
(iv) The  revised rates of all the Allowance, such as House Rent Allowance, Transport Allowance,  Children Education Allowance, Special Compensatory Allowance, etc., will be paid prospectively  w.e.f. 01.09.2008.  Accordingly, no arrears will be paid in respect of these Allowances.  However,  Dearness Allowance as applicable and Non-Practising Allowance for Medical Doctors at 25% of the  aggregate of the band pay and grade pay (subject to the condition that the Basic Pay + NPA does not exceed             Rs. 85,000), will be payable w.e.f. 01.01.2006 or the date of option as per  Annexure-3.  
(v) With a view to expediting the authorization and disbursement of arrears, it has been decided that  the arrear claims may be paid without pre-check of the fixation of pay in the revised scales of  pay.  The facility to disburse arrears without pre-check of fixation of pay, will not, however, be  available in respect of those Corporation employees who have relinquished service on account of  Dismissal, Resignation, Discharge, Retirement, etc., after the date of implementation of the Pay  Commission’s recommendations but before the preparation / drawal of the arrear claim as well as in  respect of those employees who have expired prior to drawal of pay in the revised scales.  (vi) The requirement of pre-check of pay fixation having been dispensed with, it is not unlikely  that the arrears due in some cases be computed incorrectly, leading to overpayments that might  have to be recovered subsequently.  The Drawing and Disbursing Officers should, therefore, make it  clear to the employees under their administrative control, while disbursing the arrears, that the  payments are being made subject to adjustment from  amounts that may be due to them  subsequently should any discrepancies be noticed later.  For this purpose,  an Undertaking  (Annexure-4) may also be obtained in writing from every employee at the time of disbursement of  the arrears/pay and allowances for September, 2008  to the effect that any excess payment  that may be found to have been made as a result of  incorrect fixation of pay in the  revised pay scales, will be refunded by him / her to the Corporation either by adjustment  against future payments or otherwise.  
 (vii) Government of India  O.M. No.1(3)/2008-E.II(B) dated 29.08.2008 relating to grant of  Dearness Allowance to the Central Government employees at revised rates effective from  01.07.2006, 01.01.2007, 01.07.2007, 01.01.2008 and 01.08.2008, Government of India, Ministry of  Finance, Department of Expenditure O.M. No.2(13)/2008-E.II(B) dated 29.08.2008 relating to  Grant of House Rent Allowance at the revised at rates and Govt. of India, Min. of Fin., Deptt. of Exp. O.M. No.21(2)/2008-E.II(B) dated 29.08.2008 relating to Transport Allowance at the revised  at rates (may please be downloaded from Government portal) may be implemented  for drawal of revised salary.  These allowances may be paid in the revised rate from September,  2008. However, in the case of DA & NPA to the Doctors those shall be payable from 01.01.2006. (viii) Officer In charge of Finance and Accounts Branch of each Field Office is hereby authorized to concur  the pay fixation for implementation of 6 th  Central Pay Commission recommendations as accepted by  the Central Government, wherever Joint Director (Finance) is not posted. Pay as per the above  instructions is to be fixed and arrear shall be drawn for employees from place of their  present posting.  Thereafter, copy of “Due and Drawn” statement may be sent to the concerned offices (where the official has been working since  01.01.06), immediately after release of first  installment of arrears, for making necessary entry in the relevant registers.  (ix)       (a) In the case of Sr. Hindi Translators they will continue to draw pay and arrears in the  replacement  scale of 9300-34800 in PB-2 with grade pay of Rs.4200/, corresponding to their pre-revised scale of  Rs.5500-175-9000 . However, once the amended Recruitment Rules revising their pay to Rs.6500- 200-10500 in the pre-revised scale are notified they will be given the replacement scale of 9300- 34800 in PB-2 with grade pay of Rs.4600/- from 1.7.2007.   (b) In the case of Asst. Director (OL) they will continue to draw the pay and arrears in the replacement  scale of 9300-34800 in PB-2 with grade pay of Rs.4200/- corresponding to the pre-revised scale of  Rs.6500-200-10500.  However, once the amended Recruitment Rules revising their pay to Rs.7500- 250-12000 in the pre-revised scale are notified they will be given the replacement scale of Rs.15600- 39100 in PB-3 with grade pay of Rs.5400/- from 1.7.2007.  (c) In respect of Jr. Hindi Translators and Personal Assistant are concerned since the replacement scale  for their original pay scale of Rs.5000-150-8000 in the pre-revised scale and their revised pay scale  of Rs.5500-175-9000 in the pre-revised scale are given the same replacement scale of Rs.9300- 34800 in PB-2 with grade pay of Rs.4200/- they will  draw the pay and arrears in the replacement  scale of Rs.9300-34800 in PB-2 with grade pay of Rs.4200/- w.e.f. 1.1.2006.


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