6th Pay Commission-Govt.decision about fitment formula

In a significant modification of the Pay Commission recommendation, the government has raised the fitment rate, which helps in arriving at higher allowances in view of merger of 50 percent DA with basic pay, in revised pay bands to 40 percent as against 28 percent.
Assured Career Promotion- Govt. decision
At least three promotions have been assured for all defence forces' personnel and civilian employees under the modified Assured Career Progression (ACP) scheme.
While the civilians would get it after 10, 20 and 30 years of service, the defence forces' jawans would get ACP in 8, 16 and 24 years.
Annual increment 3%
Government has also fixed the annual increment for employees at 3 percent, up from from 2.5 percent recommended by the Commission, which had submitted its report in March.
The windfall pay revision, announced on the eve of the country's 62nd Independence Day, would be implemented from 1st September this year and the government employees would get 32 months' arrears.

"The overall average increase is 21 percent," Expenditure Secretary Sushma Nath said. The fitment rate will be 40 percent as against 28 percent recommended by the Sixth Pay Commission.In a significant modification of the Pay Commission recommendation, the government has raised the fitment rate, which helps in arriving at higher allowances in view of merger of 50 percent DA with basic pay, in revised pay bands to 40 percent as against 28 percent.

The wage hike would increase the financial implication for the Centre by Rs 17,798 crore annually and the arrears with effect from January 2006 would cost Rs 29,373 crore, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting on Thursday.
The government's present salary bill is over Rs 70,000 crore and the pension bill is over Rs 30,000 crore.