CHAPTER - I

Introduction

01.01. The present Pay Revision Commission was constituted by the

Government of Andhra Pradesh under G.O.Ms.No. 438, General Admn.
(Spl.A) Department, dated: 7.7.2008. The Order states that the Commission
has been constituted in response to the representations received from various
Service Associations requesting for a Commission to review the pay scales of
the Government employees. The Pay Revision Commissioner was also
appointed in the same Order. The Terms of Reference of the Commission are
as follows:

1. “To evolve the principles which may govern the structure of

emoluments and those 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.

2. 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.

3. 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.
 2

4. To examine the need for the 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.

5. To examine and review the existing pension structure for

pensioners, and make recommendations which may be desirable
and feasible.

6. To give its recommendations on any other matter referred to it

by the State Government during the tenure of its office.”

01.02. Subsequently, in G.O.Ms.No. 483, General Administration

(Special.A) Department, dated 12.10.2009, the following two additional
Terms of Reference have been referred to the Commission.

“(i) To evolve principles / norms / criteria / guidelines for making

any category of post as gazetted and give suggestions on the
recommendations made by Shri N. Rangachary Committee
(Anomalies Committee 2008) in respect of categories proposed
for making gazetted and also in respect of the other categories
on which the administrative departments proposed for making
certain categories of posts as gazetted.

(ii) Time bound promotions after completion of 8 years and 16

years as the case may be, to all the non-teaching doctors.”

01.03. The Pay Revision Commissioner assumed office on 25.07.2008.

The Secretary to Pay Revision Commissioner could be appointed only on
29.11.2008 who assumed office on 10.12.2008. In order to proceed with the
preliminary work relating to pay revision, the Commission requested for the
services of an Officer on Special Duty and a Consultant who assumed office
in September, 2008.

01.04. A questionnaire on various aspects covered in the Terms of

Reference was prepared by the Commission and sent to various Service
Associations, Unions, the Secretaries to Government and Heads of
Departments and also placed on the Website of the Finance Department. A
copy of the questionnaire circulated is placed in Volume IV of the Report.
The Commission requested the Associations to submit their Memoranda
before the end of November, 2008. While many of the Associations adhered
to the deadline of November, 2008, a few Associations made their written
 3

submissions even subsequent to that date. The Pay Revision Commissioner

followed a flexible approach with regard to the receipt of representations and
allowed considerable time and freedom to the individuals and the
Associations to present their memoranda and make their presentations in
person.

01.05. The Commission also addressed the Heads of Departments

requesting them to furnish detailed information relating to the sanctioned
strength, the staff actually in position, and the pay scales for each category
along with a copy of the service rules. The Heads of Departments were
requested to furnish this information by 30.11.2008. The reports were
received long after the due date and some of them were even presented to the
Commission after the hearings were completed.

01.06. The Commission received 712 representations from 430 sources

and a number of Associations appeared before the Commission and made
their oral presentations. The Commission organized meetings with the
Service Associations, Unions and even individuals who had given
representations in writing. These meetings were mostly held between
17.1.2009 to 2.6.2009. The contents of the written representations received
were analysed in advance and an analysis of the requests was done and the
points on which the clarifications are required, were also identified. These
meetings have been found to be extremely useful and a number of issues were
clarified by the Associations as also by the Heads of Departments.

01.07. The Commission thought it would be advantageous to have the

benefit of advice of the previous Pay Revision Commissioners and the
Secretaries to those Pay Revision Commissioners. A meeting was therefore
convened with those who functioned as Pay Revision Commissioners from
1986 onwards and the Secretaries to those Commissioners. It is heartening to
note that out of 4 Pay Revision Commissioners 2 of them could attend while
the Secretaries to all the 4 Commissioners participated in the meeting. This
provided an opportunity to look at the developments over a period of nearly
20 years in the evolution of the pay structure, the challenges faced by each
Commission and the manner in which they had overcome those challenges.
The Commission found this meeting extremely beneficial and would like to
thank the former Pay Revision Commissioners and the Secretaries to those
Commissioners who responded to our invitation and shared their valuable
experiences.

01.08. We have found that there are large number of posts in the
Medical Department other than the practicing doctors. The Department has
also a large number of para medical staff in addition to supporting staff in
various disciplines. They perform varied functions. The Commission thought
that it would be useful to have discussions with the Heads of Departments of
 4

Medical and Health Departments for understanding the nature of the duties
performed by the Para medical staff the quality of work expected of them and
their relative positions and importance in the overall hierarchy of the
Department. A special meeting was arranged with the Directors, Health,
Medical Education and Commissioner, Family Welfare to obtain insights into
the role and the relative position of various functionaries who come under the
umbrella of Para-Medical staff. Similarly meetings were also held with
Engineers-in-Chief of all the Engineering Departments to understand the
position of employees who come under the Work Charged Establishment
and the developments that have taken place in the last 25 years in the
evolution of the Work charged Establishment and the future role of this
establishment in the context of large scale out sourcing that is going on and is
contemplated in future in the Engineering Departments. The Commission has
benefitted immensely from these interactions.

01.09. In view of the serious complaints with regard to the manner in

which the medical reimbursement scheme is being operated we had tried to
explore the possibility of suggesting an alternative health insurance scheme
for which we sought the assistance of the Arogyasri Trust which developed
expertise in handling the medical insurance scheme for the poor. We have
borrowed extensively from the experience of this organization in preparing
our scheme. We hope that the alternative scheme we have suggested to the
present medical reimbursement scheme in the form of a Health Insurance
Scheme with some financial contribution coming from the employees would
finally be accepted and would provide grater satisfaction and fully address the
medical concerns of the employees of the State. We also hope that the success
of this venture would enthuse the employees in other States to adopt the
insurance scheme. We would like to convey our grateful thanks to the
officials of the Trust for helping us in finalizing the Scheme.

01.10. The Commission had occasion to come across a number of

instances where the promotion scale and the special grade post for that post
happened to be the same. In order to identify the magnitude of this problem a
special meeting was held with Heads of Departments to identify various
categories of posts where the special grade post and the promotion post
happened to be the in same scale of pay. While we had made an effort to
rectify this situation it should be admitted that we have only succeeded in
minimizing the problem but not in eliminating the same.

01.11. The Pay Revision Commission was initially expected to give its
report within one year from the date of assumption of the office by the Pay
Revision Commissioner. The report should, therefore, have been submitted
by end July 2009. The Commission sought an extension of three months for
completion of the report and an additional one month’s extension was sought
when the two additional Terms of Reference were communicated to the
 5

Commission for examination. The Commission felt that the two additional
Terms of Reference will have to form an integral part of its report and they
cannot be dealt with separately. Hence the need for extension till end
November, 2009.

01.12. The Government had, after the constitution of the Commission,

declared an Interim Relief of 15% payable from 1-10-2008 and an additional
7% payable from 1.1.2009. Thus, a total Interim Relief of 22% was extended
to all the Government and local body employees and pensioners during the
period, when the Commission was examining the request of the various
Associations for revision of pay scales.

01.13. The Government of India’s pay revision and the high order of
Interim Relief given by the State have naturally raised great expectations
among the employees and the pensioners. The State Government did not
seem to have reckoned with the changing economic scenario while
announcing the interim relief though the signs were in evidence. So far as
Government of India is concerned, their pay revision preceded the crisis.

01.14. While India was not as severely affected as the rest of the world
the contagion effect of the financial market collapse in USA and Europe on
the Indian economy is now being felt in the form of economic slowdown,
declining revenue inflows, job losses and loss of purchasing power. The State
revenues have suffered a setback and the inflows from the Centre have
reduced while the expenditure commitments remain unaltered, and in fact
increased due to severe natural calamities that affected the State. In these
circumstances a balance has to be necessarily struck between the high
expectations of the employees and the increasing expenditure commitments of
the Government in various sectors. It is against this backdrop that the
Commission formulated its recommendations. We have tried to balance the
developmental needs of the State with the expectations of the employees. We
hope both parties appreciate the effort.
 6

CHAPTER-II
Pay Revision Commissions – An Overview

02.01. Since the formation of Andhra Pradesh there have been, so far,
nine Pay Commissions while the Government of India had only six Pay
Commissions. The constitution of a Pay Commission, at regular intervals, is
necessitated because of absence of a mechanism within the Government to
examine the pay structure on a continuing basis and revise it based upon the
availability or otherwise of trained man-power and arrive at a wage structure
to meet changing requirements. Since Government is a continuing institution
and there is hardly any free movement between the Government and the rest
of the economy, so far as man-power is concerned, the expectation within the
employee community is that their pay should be increased by the Government
from time to time keeping in view the increase in the cost of living, increased
expectations with regard to life style and in the case of the retired government
servants the increase in life span with consequent problems arising out of age
related diseases and inconveniences. While the Government of India has been
constituting a Commission once in 10 years the practice in the State since
1974 has been to have a Commission once in 5-6 years.

02.02. The Indian Economy had witnessed high levels of inflation with
low level of growth in the first fifty years since independence and a
mechanism had to be found by the Government to neutralize the effect of
inflation on the wages of its employees to cover the interregnum between the
Pay Commissions. Sanction of Dearness Allowance at periodic intervals
according to a pre-determined formula was the Government response to
counter the effect of increase in prices on the wages of the employees.

02.03. While neutralization for increases in cost of living was extended

in full to certain categories of employees others were compensated only
partially till the year 1996. The 5th Central Pay Commission pointed out that
in the absence of 100% neutralization for increase in cost of living to all
sections of government servants there will be an erosion in the wages of the
people who are not fully compensated for such increases resulting in
distortion in the pay structure violently disturbing the ratio of maximum to
minimum which was established in the first year of implementation of a Pay
Commission’s award. They therefore, recommended 100% neutralization for
the increase in cost of living for all sections of government servants and
pensioners. There, however, remained the issue of erosion in the real value of
other allowances which are related to salary and the employees, therefore
demanded an increase in other allowances also commensurate with the
increase in cost of living. Since the Government of India was appointing a
Commission once in 10 years they addressed this issue by providing for
 7

increases in other allowances when the DA, as a percentage of the pay,

exceeded 50%. In our State, however, since the pay revisions are taking place
almost every 5-6 years the necessity for considering a part of D.A., as pay for
purposes of allowances has not arisen so far.

02.04. The last Pay Commission of the State merged DA as on

1-7-2003 with basic pay and arrived at revised pay scales. Since then, the DA
was increased at 6 monthly intervals as in the case of Government of India
and the DA as % of the pay as on 1-7-2008 reached 42% of the basic pay. The
state had also sanctioned interim relief in two spells at the rate of 15% from 1-
10-2008 and 7 % from 1-1-2009.

02.05. A brief history of the Pay Commissions constituted by the State

Government is given below:

02.06. After the formation of Andhra Pradesh the 1st Pay Revision was
initiated in 1958 under the Chairmanship of Sri K.Brahmananda Reddy, the
then Finance Minister. The 2nd Pay Revision Commission was constituted in
1965 as a One Man Commission under Justice N.D.Krishna Rao. The 3rd Pay
Revision Commission was headed by Sri R.Prasad, I.C.S., (Retd)., the 4th Pay
Revision Commission by Sri A. Krishna Swamy, I.A.S., (Retd).., the 5th Pay
Revision Commission by Sri K.Subrahmanyam, IAS., the 6th Pay Revision
by Sri D.Shankaraguruswamy, IAS.,. (Retd)., the 7th Pay Revision
Commission by Sri R.K.R. Gonela, IAS, (Retd.) and the 8th Pay Commission
by Sri J.Rambabu, IAS., (Retd). The following table indicates the dates of
constitution, time taken by the Commission and other details relating to
various Commissions appointed since 1958.

Statement showing the particulars of Pay Revision from time to

time
Sl. PRC Date / Year Date of Time Date of Financial
No of Submission taken Implementa- Implications
Constitution of the tion
report
1 1958 NA NA NA NA NA
2 1965 NA NA NA NA NA
3 1974 06-06-1974 29-14-1975 Nearly 111-1-1974 with Rs.7.50 cr.
months monetary
benefit from
1-1-1975.
4 1978 Pay 01-01-1978 17-09-1979 Nearly 1 1-4-1978 with Rs.31.15 cr.
Scale + year 8 monetary
Pensions months benefit from
1-3-1979
5 1986 10-05-1985 13-07-1986 Nearly 1 1-7-1986 Rs.75 cr.
year 2
months
 8

Sl. PRC Date / Year Date of Time Date of Financial

No of Submission taken Implementa- Implications
Constitution of the tion
report
6 1993 03-05-1991 08-04-1993 Nearly 1 1-7-1992 with Rs.210.50
year 11 monetary cr.
months benefit from
(Univer- 1-4-1993
sities Non-
teaching
staff are
included
in Terms
of
Reference)
7 1999 01-02-1998 21-07-1999 Nearly 1 1-7-1998 with Rs.1257.82
Pay (Govt. Emp.) year 5 Monetary cr.
Scales + 25-08-1999 months benefit from
Pensions (Universities) (Govern- 1-4-1999
ment
Employees)
after 1
month
(University
Employees)
8 2005 23-02-2004 30-06-2005 Nearly 1-7-2003 with Rs.1199.62
Scales + one year 4 Monetary cr.
Pensions moths benefit w.e.f.
1-4-2005

02.07. An interesting feature of our pay revisions has been the

appointment of an Anomalies Committee immediately after the
implementation of the report of the Pay Commission. We have perhaps, as
many Anomalies Committees as there are Pay Revision Commissions. A
perusal of the Anomalies Committees’ Reports reveal that their examination
was not confined to the anomalies that arose out of the Report of the Pay
Commission but also addressed a number of issues which were not conceded
by the Pay Commission. The employees thus used the Anomalies Committee
as another window available to them beyond the Pay Revision Commission to
ventilate their grievances and sometimes succeeded in getting favorable
findings though the PRC had rejected them. Obviously this is not the intention
of the Government and is a case of undue advantage taken by the Unions and
unbridled exercise of discretion by the Anomalies Committee. This has
happened primarily because those who approached the Anomalies Committee
were not specifically asked by the Committee to precisely identify the
anomaly which has arisen as a result of the recommendations of the Pay
Commission. The Anomalies Committees enlarged the scope of their enquiry
to nullify, at times, the parities established by the Pay Commission and in the
process created new anomalies. They made recommendations on issues not
referred to them and were totally outside the scope of their examination. We
 9

have pointed out some instances of this nature while dealing with specific
cases. This is not a desirable trend and deserves to be discouraged through an
appropriate institutional mechanism.

02.08. The 1978 Pay Commission called “anomaly” as the new pay
disease. We totally endorse this view. It is not uncommon for the
Associations to ventilate the same grievance at various fora and complain that
their legitimate concerns were not addressed by the P.R.C., the Anomalies
Committee and the Government. There is a Perception problem here. The
PRC / Anomalies Committee may not perceive it as a disparity while the
affected parties think that they are not getting a sympathetic response. Most of
the complaints relating to anomalies fall in this category. One common
complaint is that a pay parity that existed at one time between officers of one
Department and another in a different Department is disturbed by the P.R.C.,
and it should be restored. This Commission had occasion to come across a
number of representations citing the parity in pay scales of 1974 as the basis
for claiming restoration of parity with those who got improved scales in the
subsequent revisions.

02.09. The Pay Revision Commissions are meant to assess at periodic

intervals, the changes taking place in priorities of Government which find
expression in the form of new schemes, the mechanism for implementation of
these schemes, the availability of qualified manpower to achieve the
objectives of the schemes and the incentives to be built in through an
appropriate pay structure to enthuse existing incumbents and attract new
talent into the service. In this process the pay scales get revised and the
parities that once existed in pay may get altered. If the job of the P.R.C., is to
merely arrive at a DA merged pay scale and suggest a fitment formula with all
employees getting equivalent pays, it would freeze relativities at a given point
of time and the PRC can easily be replaced by a qualified statistician who can
generate the statements and leave the judgment regarding fitment to
Government. That, obviously, is not what the Government expects of a PRC
nor is it the expectation of the Associations/Unions. Hence citing one time
parity in the pay scale as an anomaly has been found by many Commissions
and even Anomalies Committees as a cause not warranting their intervention.

02.10. The other common representations seeking parity in scales are

based on similar academic qualifications, entry into Government service
through a common entrance examination, size of the territorial jurisdiction
etc., These issues were examined by several Commissions/Committees and
not held to be valid as academic qualifications alone cannot constitute the
basis for determination of pay as in such an event the R.D.O. and the Deputy
Superintendent of Police should be placed in the same scale of pay as the
Assistant Section Officer in the Secretariat, that common entrance
examination is a matter of convenience and cannot be the justification for
 10

equal pay and that territorial jurisdiction is determined with reference to the
intensity and quality of work and cannot become a bench mark for pay scales
etc,. What determines the pay scale ultimately is a combination of all these
factors and not a single feature as is made out by the Associations that present
their case before various Commissions / Committees.

02.11. While we have dealt with a few instances of what do not

constitute “prima-facie” an anomaly, it is only fair that we indicate what, in
our opinion constitutes an anomaly. The most obvious case is same category
of people working in different Organizations getting different pay scales. The
classic case is the SGB Teachers in PR institutions getting a scale of pay
different from SGB Teacher working in Jails or Juvenile Welfare Department.
These arise more due to oversight than as a matter of deliberate policy. The
next case of an anomaly arises if the promotion post and the feeder category
are in the same scale or the promotion post carries a lower pay. The exception
to this, of course, is the case where some one from one line of activity moves
into another line of activity. An example of this exception is the Teachers in a
particular scale moving into administrative line, which according to us is a
matter of deliberate choice. Same is the case with officers from HOD and
Secretariat seeking field assignments. Normally when some one progresses in
his own Department to higher levels he should be moving into a higher scale.
When he moves away from his normal course of progression and seeks
opportunities outside the wing to which he was recruited, he should be willing
to settle for an equal or less pay as he has the choice to either follow or reject
that course of alternative progression.

02.12. We believe that the present cycle of Pay Revision

Commission followed by an Anomalies Committee which, in turn, is
followed by another Pay Commission even before the conclusion of the
sessions of the Committee appointed to look into the anomalies of the
earlier Pay Revision Commission should cease. The reports of the earlier
Anomalies Committees reveal that their examination is as extensive as the
examination by the Pay Revision Commission. As pointed out by us earlier,
the Anomalies Committee should restrict itself only to an anomaly that has
arisen as a result of recommendations of the Pay Revision Commission whose
report is being reviewed by the Committee. It should not entertain
representations already made to the earlier Pay Revision Commission and
reopen issues which have already been settled by the PRC. We recommend
that to achieve this objective the Committee should insist on every
representation being accompanied by a standard proforma which should
be published by the Committee in advance and a perusal of the replies to
the proforma should reveal whether the anomaly is attributable to the
recommendations of the Pay Revision Commission or not. The petitioner
should be able to establish clearly that his position has been altered, only
as a result of the recommendation of the Pay Revision Commission. This
 11

will ensure that the Committees enquiry would be limited to the problem that
arose due to the current Report of the P.R.C. This will also ensure that the
issues of historical parities are not raised “adnauseam” for gaining a hearing
from the Committee. Further if the Pay Commission in its report had given
reasons for the changes effected for a particular group of personnel, this
cannot, prima facie, be called anomaly even if it affects others who happened
to be in the same pay scale. Obviously the Commission decided to effect
changes and did not wish to grant the same benefit to others who are placed in
the same scale. Such cases should only be taken up before the next Pay
Commission as and when constituted. If the Anomalies Committee deals
with it and gives a finding contrary to that of the P.R.C., it would amount
to the Committee substituting its judgment in place of the judgment of
the P.R.C. That is not the role of the Anomalies Committee. If the above
suggestions are adhered to it will leave sufficient time for the Committee to
examine genuine cases of anomaly, if any, caused by the recommendations of
the PRC whose report is being examined by them. We also suggest that the
officers, who assisted the Committee may be continued with a small
supporting staff to assist the PC Section and provide the circumstances that
led to the conclusions of the Commission and the implication of changes, if
any, contemplated by the Committee.

02.13. Since the examination will be a focused one, there will be no

need to have a separate Chairman for this Committee. A Committee of
Secretaries including a Secretary from the Finance Department may be
entrusted with the job of attending to anomalies pointed by individuals or
Associations with the Finance (PC) Section assisting that Committee
instead of a full time Anomalies Committee. This will result in a speedy
disposal of the representations and redressal of genuine grievances. This
will be far more effective and will serve the interests of the employees better
than the existing system of an exclusive Chairman who feels morally
obligated to examine every petition received by him whether relevant or not
relevant to the terms of reference and take a year or so to submit his report.
This will ensure not only a speedy disposal but also end uncertainty and give
finality to the issue of pay scales so far as that Commission is concerned.

02.14. We have made an attempt in this Report to look at various

aspects affecting the emoluments of the employees and work out an
appropriate package consisting of a streamlined Master Scale, a span of scales
that avoids stagnation, ensures that the quantum of increment is consistent
with the increases in the quantum of pay and that there is a reasonable
increase in other allowances etc. We also worked out appropriate pay
packages for a set of employees where we thought streamlining is called for.
We tried to bring the Minimum Pay scale of the lowest paid employee in
the State Government on par with the pay scale evolved by the Sixth
Central Pay Commission for category ‘D’ employees for initial fixation
 12

before they are integrated into category ‘C’ as they suggested eventual
abolition of category ‘D’ in G.O.I. However, the States that adopt the
Central scales had continued with Class IV which is equivalent to D
category in Government of India, and adopted the corresponding pay
scale of ‘D’ category for their Class IV employees. We are, therefore, on
par with the States that adopt Central Pay Scales so far as Minimum pay
is concerned.

02.15. As we have equalized the pay scales at the lowest level and our
DA is aligned to Government of India we feel that a pay revision should be
contemplated by the State only when the next Pay Commission of G.O.I. is
about to submit its Report for their employees. It would be advantageous to
align the DA merger with that of the G.O.I. employees at least in the next
revision. Meanwhile when the DA on the revised pay scales reaches 50%
of the basic pay, we recommend that all allowances including special pay
may be increased by 25% so that employees are adequately compensated
for the increase in the cost of living and will not nurse a grievance that a
PRC would have addressed this issue had it been constituted after 5 years
as has been the case so far.

02.16. Several Pay Commissions in the past had recommended pay

revision once in ten years. Frequent pay revisions raise expectations, disrupt
normal work, create additional work load on all organizations with no
tangible benefits. Five years is too short a period for a major reassessment of
the activities of the Government and the role played by its employees.

02.17. We firmly believe that revisions at short intervals should be

avoided and the scales should be allowed to settle down and there should
be reasonable certainty about the scale and the emoluments that go with
it. We strongly urge the Government to give up the present practice and
follow the G.O.I practice of appointing a Pay Commission once in ten
years. Our recommendations regarding compensating the employees
through increase in other allowances when DA crosses 50% of basic
should assure the employees that their financial interests are protected in
the interregnum.
 13

CHAPTER-III
State Economy- An Overview

Introduction:

03.01. The terms of reference of the Pay Commission specifically

enjoin the Commission to make recommendations relating to revision of pay
and other allowances keeping in view the state of the economy, the resource
endowment, the ability of the State to convert those resources into realizable
revenues, and the competing demands on those resources. The Associations,
on the other hand, contend that the Commission should recommend a fair
wage and the manner in which the financial commitment would be met should
be left to the ingenuity of the State. We do not fully subscribe to this view.
While the employees have to have reasonable pay package sufficient to attract
the talented people into government service and retain them, the larger role of
the government to facilitate development of the State and ensure that its
citizens have access to food, clothing and housing at reasonable prices, cannot
be lost sight of. The state of finances and their present deployment along with
future requirements therefore become critical to arrive at a reasonable
package of emoluments for government servants and those who work in the
local bodies and a number of welfare Corporations which also follow the
wage structure evolved by the Commission for government servants.

03.02. It is well recognized that Andhra Pradesh virtually acts as a link

between the North and the South due to its strategic geographical location.
For a long time, under various parameters, the State had indicators which
were above the average of the most populous States in the North and below
the levels attained by the States in the South. Over a period of time, there
seems to be a shift away from this trend and an attempt is made in this chapter
to briefly outline the performance of the State’s economy and the lessons
that one can draw from it for arriving at a reasonable wage structure for the
employees of the State , local bodies, Universities and the Welfare
Corporations.

Growth Performance:
03.03. The growth of Gross State Domestic product (GSDP) of the
State which remained lower than the growth of Gross Domestic Product
(GDP) for the country till the seventies improved in the eighties. The GSDP
growth in AP in the eighties at 6.1 per cent was marginally higher than the
GDP growth of the country (5.6 per cent). AP was one of the top performing
States in the eighties with only three states, namely, Rajasthan, Haryana, and
Maharastra registering higher growth than A.P. The higher than the national
average growth could not be sustained for long. The growth of the State
economy slipped below the national average during the mid-nineties and this
 14

became more pronounced in later years. In the nineties, AP was ranked eighth
in terms of GSDP growth. Apart from the above three States, Gujarat,
Karnataka, Tamil Nadu and West Bengal had growth rates higher than that of
AP. The GSDP growth was lower than the national average in all the years
from 1995-96 to 2002-03, except in the years 1999-2000 and 2000-01. The
higher than national average growth in 1999-2000 was following a negative
growth in the previous year and the higher growth in 2000-01 was facilitated
by a higher growth of the agricultural sector. Since 2003-04 there has been a
turnaround in the State economy and the growth of the economy has
consistently been higher than the national average in all the years, with the
exception of 2008-09. Lower growth of the economy in 2008-09 was on
account of steep fall in the growth of agriculture and industry, more
particularly in the latter sector. Growth of agriculture and industrial sectors
largely contributed to the higher growth of the economy since 2003-04.

03.04. There was a marginal shift in the composition of GSDP

between 1999-2000 and 2008-09. During this period, while the share of
agriculture declined by nearly five percentage points to 23.9 per cent, those of
the industry and service sectors improved by nearly one percentage point to
24.9 per cent and by nearly four percentage points to 51.2 per cent,
respectively. Table-1 presents the trend in the growth of GSDP in the State.

Table-1: Aggregate and Sectoral Growth Rates-Andhra Pradesh and

India
Period/ Andhra Pradesh (Sectoral growth %) Growth
years Agriculture Industry Services GSDP of GDP
(%)
1960-71 1.07 5.15 3.59 2.26 3.55
1970-81 1.18 5.97 5.02 3.08 2.63
1980-91 3.79 7.20 8.26 6.11 5.62
1990-2001 2.95 6.56 6.43 5.29 5.77
1999-2000 -0.70 3.51 8.88 5.64 6.44
2000-01 12.91 1.08 7.73 7.94 4.35
2001-02 -1.53 4.63 7.69 4.22 5.81
2002-03 -7.76 8.21 6.30 2.73 3.84
2003-04 15.14 6.16 7.92 9.35 8.52
2004-05 4.44 12.20 8.27 8.15 7.47
2005-06 8.84 13.22 9.53 10.24 9.52
2006-07 2.73 17.66 12.29 11.16 9.75
2007-08 14.85 11.11 8.37 10.62 9.01
2008-09 2.27 0.12 10.06 5.53 6.70

Note: Figures from 1999-2000 onwards are at 1999-2000 prices. Others

are at 1993-94 prices.
Source: Government of Andhra Pradesh, Planning Department, ‘Socio
Economic Survey 2008-09’.
 15

03.05. The per capita income of the State, which remained below the
national average till 1999-2000, witnessed a turnaround since 2000-01. Since
2000-01, the per capita income of the State has consistently been higher than
the national average. The higher growth of per capita income in the State
during the nineties, despite a lower than all-India growth of the economy, was
entirely on account of the deceleration in the growth of population in the
State. During the decade 1991-2001, the population of the State grew by 1.46
per cent per annum as compared with the country’s average of 2.15 per cent
per annum. In the year 2008-09 for which the latest figures are available, the
per capita income of the State at constant prices (1999-2000 prices) was Rs.
26,983 as compared with the national average of Rs.25,494. Trends in per
capita income of the State are presented in Table-2

Table-2: Trends in Per Capita Income-Andhra Pradesh and All-India

Period/ Average annual Per Average annual Ratio of per

years capita income (Rs) growth of per capita capita income
income (%) of AP to all-
AP India AP India India (%)
1960-71 4422 4965 0.26 1.23 89.1
1970-81 4904 5575 0.94 1.12 88.0
1980-91 6160 6788 3.04 3.24 90.7
1990-2001 8865 9587 4.01 3.98 92.5
1999-2000 15507 15881 4.26 4.56 97.6
2000-01 16574 16173 7.44 1.84 102.5
2001-02 17213 16769 3.86 3.69 102.6
2002-03 17340 17109 0.74 2.03 101.3
2003-04 18819 18301 8.53 6.97 102.8
2004-05 19963 19331 6.08 5.63 103.3
2005-06 21728 20868 8.84 7.95 104.1
2006-07 23898 22580 9.99 8.20 105.8
2007-08 26195 24295 9.61 7.60 108.2
2008-09 26983 25494 3.01 4.94 105.8

Note: Figures from 1999-2000 onwards are at 1999-2000 prices and

others are at 1993-94 prices.
Source: Government of Andhra Pradesh, Planning Department, ‘Socio
Economic Survey 2008-09’.

03.06. The global downturn being witnessed since September 2008

has cast its shadow on the Indian economy. The growth of GDP in the country
slipped to 6.7 per cent in the year 2008-09, the lowest in the last six years.
The Reserve Bank of India’s forecast of GDP growth in 2009-10 is about 6
per cent. In Andhra Pradesh, the decline in the growth of GSDP in 2008-09
 16

was much sharper. The growth of GSDP in 2008-09 declined by over 5

percentage points to 5.53 per cent. Uncertainty regarding economic
recovery in 2009-10 has been compounded by the significant shortfall in
rainfall in the current year in most parts of the State and the country. In the
current uncertain situation, it would be difficult for the State to maintain
the momentum of growth. Given the uncertainties, it would be difficult to
estimate the extent of slowdown in the State economy and the duration of
the slow down. This is an important development with a significant
bearing on State finances.

Section-2: Fiscal situation of the State

03.07. The finances of the Government of Andhra Pradesh started

deteriorating towards the middle of the nineties as in other States. The main
factors contributing to such deterioration in general were low and declining
buoyancies in tax and non-tax revenues, losses of public enterprises,
particularly those of the State electricity board, declining resource transfers
from the Centre and pay revision of government employees. In addition to
these general factors, the introduction of full prohibition in the State and the
revival of the Rs. 2 per kg rice scheme in the year 1995-96 greatly contributed
to the deterioration of State finances in Andhra Pradesh. These factors
resulted in higher revenue and fiscal deficits and consequent build up in the
outstanding public debt of the State and interest burden. The quality of
expenditure also suffered a great deal with the share of revenue deficit in
fiscal deficit increasing from 16.3 per cent in 1990-91 to over 47 per cent in
1998-99. This indicates that nearly 50 per cent of the borrowed resources
were used to finance current expenditure. The revenue deficit of the State
which deteriorated from 0.45 per cent of GSDP in 1990-91 to 3.55 per cent of
GDSP in 1996-97 slightly moderated to 2.48 per cent of GSDP in 2000-01.
The fiscal deficit of the State reached the peak level of 5.04 per cent of GSDP
in 2000-01 from a modest level of 2.73 per cent in 1990-91. The outstanding
debt of the State increased to 27.04 per cent in 2002-03 from 19.05 per cent in
1990-91. Proportion of interest payments to revenue expenditure reached a
level of 23.5 per cent in 2002-03 from 10.6 per cent in the year 1990-91.
State’s own tax revenue which declined from 7.47 per cent of GSDP in
1990-91 to 5.16 per cent 1995-96 recovered to reach the 1990-91 level in
2000-01.

03.08. Faced with the deteriorating fiscal situation, the State

Government took a number of steps. These included reverting to partial
prohibition in the year 1996-97 and its total lifting in the year 1997-98, raising
the issue price of rice to Rs.3.50 per kg from Rs.2 per kg, raising water rates
and electricity tariff. These measures helped in arresting the deterioration in
the fiscal situation.
 17

03.09. Since about 2003-04, the State has been witnessing a major
improvement in its finances along with other States. The major contributory
factor for such an improvement was the turnaround in economic growth in the
country. There was a major shift in the trajectory of growth in the case of the
national economy as well as the economy of the State. While GDP growth at
the national level increased from 3.84 per cent in 2002-03 to 8.52 per cent in
2003-04, the growth of GSDP at the State level rose from 2.73 to 9.35 per
cent in the same period. Along with the pick up in the growth of the economy,
tax revenues started becoming more buoyant. The fiscal situation in the State,
in a nutshell, is reflected at Table 3.
Table-3: Fiscal situation in Andhra Pradesh - 2003-04 to 2008-09
(Rs. Crore)
2003- 2004- 2005- 2006- 2007- 2008- 2009- Change:
04 05 06 07 08 09 10 2008-09
(RE) (BE) Over
2003-04
I. Total 26869 28749 34851 44245 54142 69686 78963 42817
revenue
(1+2)
a)Own 17411 20010 23208 30414 35858 44138 53610 26727
revenue
b)Own tax 13806 16254 19611 23926 28794 35740 40664 21934
revenue
c)Own 3605 3756 3597 6488 7064 8398 12946 4793
non-tax
revenue
2)Transfers 9458 8739 10548 13831 18284 25548 25353 16090
from the
Centre
29830 31307 34915 41437 53984 67619 76557 37789
II. Revenue 6856 7091 7008 7280 7589 8335 9104 1479
expenditure
III. -2961 -2558 -64 2808 158 2067 2407 5028
Revenue
deficit
IV.Fiscal -7450 -8192 -8300 -5643 -9019 -10427 -16162 2977
deficit
V. -594 -1101 -1292 1637 -1430 -2092 -7059 1498
Primary
deficit
VI.outstan 58770 66393 70408 75421 82479 92465 110093 33695
-ding debt
As Percentage of GSDP at Current Prices
I.Total 14.08 13.50 14.48 15.88 16.49 18.78 19.35 4.70
revenue
(1+2)
a)Own 9.12 9.40 9.64 10.91 10.92 11.89 13.14 2.77
revenue
b)Own tax 7.23 7.63 8.15 8.58 8.77 9.63 9.96 2.40
revenue
 18

2003- 2004- 2005- 2006- 2007- 2008- 2009- Change:

04 05 06 07 08 09 10 2008-09
(RE) (BE) Over
2003-04
c)Own 1.89 1.76 1.49 2.33 2.15 2.26 3.17 0.37
non-tax
revenue
2)Transfer 4.95 4.10 4.38 4.96 5.57 6.88 6.21 1.93
s from the
Centre
II.Revenue 15.63 14.70 14.51 14.87 16.44 18.82 18.76 3.19
expenditure
of which 3.59 3.33 2.91 2.61 2.31 2.32 2.20 -1.27
interest
payments
III. -1.55 -1.20 -0.03 1.01 0.05 0.56 0.31 -1.86
Revenue
deficit
IV. Fiscal -3.90 -3.85 -3.45 -2.02 -2.68 -2.81 -3.96 -1.09
deficit
V. -0.31 -0.52 -0.54 0.59 -0.36 -0.56 -1.73 0.25
Primary
deficit
VI. 30.79 31.18 29.25 27.06 25.12 24.92 26.97 -5.87
outstand-
ing debt

03.10. As shown above, the fiscal improvement in Andhra Pradesh

between 2003-04 and 2008-09 was entirely revenue led. The improvement
in the revenue position of the State during this period was by 4.70
percentage points of GSDP, largely contributed by own tax revenues of the
State and transfers from the Centre. There was no compression of revenue
expenditure during this period. In fact, revenue expenditure of the State
during this period increased by 3.19 percentage points of GSDP. The
increase in the revenue expenditure would have been much higher but for
the reduction in the interest burden by 1.27 percentage points of GSDP
mainly on account of the debt swap scheme and the debt consolidation and
write-off facility recommended by the Twelfth Finance Commission.

Expenditure on Salaries, Wages and Pensions:

03.11. Government’s capacity to incur expenditure on salaries,
wages and pensions is constrained by its own revenue generating
capacity. State government’ revenue resources consist of own revenue
and transfers from the Central government. Own revenues of the State
consist of tax and non-tax revenues and the transfers from the Centre
consist of share in Central taxes and grants, the latter invariably linked
to specific expenditure needs. The task of eliminating deficit and
maintaining a surplus on the revenue as mandated by the Fiscal
 19

Responsibility and Budget Management Act (FRBMA) is challenging for

any State government. This is particularly so given the competing claims
on the limited resources of the government. Because of the focus on
inclusive growth and human resource development, the State government is
required to focus more on education, health, and social welfare programmes,
which are revenue expenditure intensive, besides meeting the inevitable
expenditure on interest payments and maintenance of law and order.
Therefore, any analysis of salary expenditure cannot ignore other competing
claims on the resources of the State government.
03.12. Expenditure on salaries and pensions as a percentage of
own revenue receipts moderated from 74.80 per cent in 1990-91 to 52.85
per cent in 2009-10. As a percentage of revenue expenditure the
moderation is modest from 46.53 per cent to 37.01 percent in the same
period. The decline in the proportion of expenditure on salaries and
pensions to own revenue and revenue expenditure is mainly on account of
higher growth of own revenue and revenue expenditure in relation to the
expenditure on salaries and pensions over the last 20 years. Trends in the
expenditure on salaries and pensions are presented in the following
Table.
Table-4: Expenditure on Salaries and Pensions as Proportion of
State’s Revenue and Expenditure
Year Expenditure on salaries, wages Expenditure on establishment as
and pensions as % of % of
Own Total Revenue Own Total Revenue
revenue Revenue expenditure revenue revenue expenditure
1990-91 74.80 47.90 46.53 4.44 2.84 2.76
1991-92 72.56 46.62 45.39 5.11 3.29 3.20
1992-93 72.38 45.76 44.98 4.58 2.89 2.84
1993-94 70.46 44.27 45.56 4.35 2.73 2.81
1994-95 76.71 50.27 46.42 4.83 3.17 2.92
1995-96 82.28 47.70 44.38 3.79 2.20 2.04
1996-97 80.91 47.03 36.58 4.51 2.62 2.04
1997-98 66.82 42.97 40.90 3.22 2.07 1.97
1998-99 69.49 47.80 40.22 3.24 2.23 1.88
1999-00 73.28 49.93 46.52 2.65 1.81 1.68
2000-01 76.13 51.97 43.88 3.42 2.34 1.97
2001-02 66.65 46.53 41.11 3.71 2.63 2.32
2002-03 66.41 46.62 41.15 3.31 2.33 2.05
2003-04 65.47 42.42 38.21 3.37 2.18 1.97
2004-05 60.44 42.07 38.63 3.29 2.29 2.10
2005-06 58.82 39.96 39.10 2.59 1.76 1.72
2006-07 53.61 36.85 39.35 2.40 1.65 1.76
2007-08 51.13 33.86 33.96 2.28 1.51 1.51
2008-09 49.53 31.37 32.33 2.31 1.46 1.51
(RE)
2009-10 52.85 35.88 37.01 2.10 1.43 1.47
(BE)
 20

03.13. The ratios of expenditure on salaries and pensions to own

revenue, total revenue and total revenue expenditure remained high till the
year 2000-01. In that year, the ratios of expenditure on salaries to own
revenue, total revenue and revenue expenditure were 76.13 per cent 51.97
per cent and 43.88 per cent, respectively. These ratios were higher than the
respective ratios in the year 1990-91, except the ratio to revenue
expenditure. This was due to the higher growth of revenue expenditure in
relation to the growth of revenue. The moderation in the ratio started from
the year 2001-02 onwards. The declining trend in the ratios continued till
2008-09. By 2008-09, the ratios of expenditure on salaries and pensions to
own revenue, total revenue and revenue expenditure had come down to
49.53 per cent 31.37 per cent and 32.33 per cent, respectively. The declining
trend was mostly on account of the buoyant revenue growth in these years.
The declining trend is being reversed in 2009-10. The proportion of
salaries and pensions to State revenues and the revenue expenditure is
registering an increase. The estimated jump in all these three ratios in
2009-10 is about four percentage points. This is both on account of the
slow down in the revenues of the State government and the payment of
interim relief to the employees. This will get further accentuated if the
decline in revenues persists. The expenditure will continue to rise as in the
previous years. This is a situation causing concern.
03.14. In recent years, there has been declining trend in the ratio of
establishment expenditure to own revenue, total revenue and revenue
expenditure. This was entirely on account of buoyant revenue growth and
not on account of any reduction in the establishment cost. This is a
significant development in view of the contraction of the government
employees.

Salary expenditure of the Central Government:

03.15. It may be relevant to compare the trends in salary expenditure

in the State with those of the Central Government. The comparison may not
be easy because of a number of differences. Firstly, the salary expenditure
of the Centre as reported in the budget documents is exclusive of the
salaries of defence services personnel. Secondly, expenditure on pensions
reported in the budget documents of the Centre is inclusive of defence
pensions but exclusive of the pensions of Railways and Department of Posts
which are treated as the operating expenses of these departments. Still
certain broad trends in respect of the salary and pension expenditure of the
Central Government presented below give some indication of the vast
difference that exists between the Centre and the State so far as impact of
salaries on the Budget is concerned.
 21

Table-5: Expenditure of the Central Government on Salaries and Pensions

Salaries Expenditure on salaries and Expenditure on pensions as

and Pensions allowances as percentage of percentage of
allowan- Net tax Net Total Net tax Net Total
ces revenue revenue revenue revenue revenue revenue
(Rs. Crore) receipts expendi- receipts expenditure
ture
1997 25930 6881 27.10 25.06 14.38 7.19 6.65 3.82
-98
1998 28904 10057 27.62 23.38 13.35 9.61 8.13 4.65
-99
1999 31500 14286 24.56 20.77 12.65 11.14 9.42 5.73
-00
2000 27588 14379 20.19 17.81 9.93 10.52 9.28 5.18
-01
2001 29925 14436 22.41 18.84 9.93 10.81 9.09 4.79
-02
2002 31420 14496 19.82 16.74 9.28 9.14 7.72 4.28
-03
2003 32155 15905 17.20 14.93 8.88 8.51 7.38 4.39
-04
2004 35154 18300 15.64 13.94 9.15 8.14 7.26 4.76
-05
2005 37262 20256 13.85 16.64 8.48 7.53 7.41 4.61
-06
2006 39854 22104 11.35 11.54 7.74 6.29 6.40 4.29
-07
2007 44361 21261 10.09 10.16 7.46 4.84 4.87 3.58
-08
2008 69083 23690 14.83 15.91 8.60 5.08 5.46 2.95
-09
(RE)
2009 85075 34980 17.94 18.17 9.48 7.38 7.47 3.90
-10
(BE)

Note: Salary expenditure includes payment of arrears amounting to

Rs.11,277 crore in 2008-09 and Rs.16,883 crore in 2009-10.
03.16. The ratios of expenditure on salaries and pensions to revenue
and expenditure of the Central government are much lower as compared
with AP. This is because of the fact that the States are assigned more
functional responsibilities than the Centre under the Constitution
necessitating employment of more personnel. Lower ratios are also
reflective of the higher resource base of the Centre. By 2007-08, the ratios
of salary expenditure to net tax revenue, net revenue receipts and revenue
expenditure more than halved as compared with those prevailing in the late
nineties. The sharp increase witnessed in the ratios in the years 2008-09 and
2009-10 is on account of the revision of pay scales and the payment of
 22

arrears of pay following the implementation of the recommendations of the

Sixth Central Pay Commission. It may be observed that going by B.E. 2009-
10 even after absorbing the impact of the Sixth Pay Commission the
expenditure on salaries constitutes only 18% of the net tax revenues of the
Centre while they constitute 53% of the own tax revenues of the State.
Net Availability of borrowed Funds:
03.17. One of the important indicators of debt sustainability is the
ratio of debt redemption (repayment +interest payments) to total debt
receipts in the State. The ratio of debt redemption to fresh debt raised in a
year indicates the net debt available for financing the deficit of the State
government. The higher the ratio, higher will be the borrowings of the State
government. The following Table presents the trend in the debt redemption
ratios.
Table-6: Trends in Debt Redemption Ratios
(Rs. Crore)
Debt 2002- 2003- 2004 2005- 2006 2007- 2008- 2009-10
03 04 -05 06 -07 08 09 (BE)
(BE)
Internal Debt
Loans raised 9479 14865 7992 3448 4236 10223 12811 20453
Repayments 8506 13652 3059 9783 8632 9981 11062 14383
and interest
payments
Net loan 973 1213 4933 -6335 -4396 242 1749 6070
available
Debt 0.90 0.92 0.38 2.84 2.04 0.98 0.86 0.70
redemption
ratio
Loans from
GOI
Loans raised 2548 3118 1841 522 315 909 1170 2481
Repayments 4653 6054 6595 2046 2437 1978 1968 1942
and interest
payments
Net loan -2105 -2936 - -1524 - -1069 -798 539
available 4754 2122
Debt 1.83 1.94 3.58 3.92 7.74 2.18 1.68 0.78
redemption
ratio
Loans from
NSSF
Loans raised 2661 3548 6281 4914 4144 387 1000 1000
Repayments 2446 3797 2582 1914 2191 2585 2737 2955
and interest
payments
Net loan 215 -249 3699 3000 1953 -2198 -1737 -1955
available
Debt redemp- 0.92 1.07 0.41 0,39 0.53 6.68 0.37 0.3
tion ratio
 23

03.18. The debt redemption ratio in respect of internal debt of the

government which remained less than one till 2004-05 became more than two
in the years 2006-07 and 2007-08. A debt redemption ratio higher than one
indicates that the outflow in terms of loan repayments and interest payments
are higher than the fresh loans raised. In the years 2005-06 and 2006-07 the
reverse flow from the state government was Rs.6335 crore and Rs.4396 crore,
respectively as the fresh loans raised were inadequate to service the past
debts. Though the redemption ratios in respect of internal debt are less than
one in the years 2007-08 and 2008-09, the trend is unlikely to continue in the
subsequent years. Nearly 58 per cent of the outstanding market borrowings of
the State government are due for repayment in the next seven years beginning
2009-10. Therefore, the redemptions are expected to be higher in the coming
years putting pressure on State’s resources.

03.19. There is a continuous negative flow of resources in respect of

the Central loans. The higher redemption ratios in recent years is on account
of the termination of the system of extending Central loans to States from the
year 2005-06, following the recommendation of the Twelfth Finance
Commission. In lieu of Central loans, States are being allocated higher market
borrowings which have a short tenor of about ten years. In contrast, loans
from the Centre had a repayment period of 25 years with a moratorium of five
years. Because of the termination of Central loans, redemption pressure will
continue to be higher in the next few years.

03.20. The situation in respect of loans from the NSSF is even

worrisome. In recent years, net loans have turned negative because of the
lower small saving collections in the State.

Subsidies:

03.21. Focus on inclusive growth, the welfare of the weaker sections

of society and farmers has resulted in the expenditure on subsidies increasing
year after year. Food subsidy and subsidy to the Andhra Pradesh
Transmission Corporation (APTRANSCO) are the major subsidies
administered by the Government of Andhra Pradesh. The food subsidy is on
account of distribution of rice at Rs. 2 per kilogram to the weaker sections of
the society. Subsidy to APTRANSO is on account of supply of free electricity
to farmers. Trends in these subsidies are presented below.
 24

Table-7: Expenditure on Major Subsidies by the State Government

(Rs. Crore)
Type of 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009-
subsidy 03 04 05 06 07 08 09(RE) 10
(BE)
Power 1554 1552 1816 1696 1367 1175 2385 6040
subsidy
Rice subsidy 242 341 500 541 704 880 1980 3500
Total 1796 1893 2316 2237 2071 2055 4365 9540
Expenditure 6.89 6.35 7.40 6.41 5.00 3.81 6.46 12.49
on major
subsidies as
% of
revenue
expenditure

03.22. Expenditure on major Subsidies has remained at around 6 per

cent of the total revenue expenditure in recent years. But this ratio has almost
doubled to 12.49 per cent in 2009-10 on account of the new policy decisions
taken by the Government in May 2009. Free power supply to farmers has
been increased from seven to nine hours daily. The entitlement of rice at Rs. 2
per kilogram to persons below the poverty line has been raised from 4 to 6
kgs per person. Additional expenditure following these decisions is estimated
at Rs. 3000 crore per annum in respect of power supply and Rs. 4000 crore
per annum in respect of rice subsidy.

Conclusion:

03.23. The foregoing analysis of the State’s economy establishes that

the year 2003-04 was a major milestone in the march of the State towards a
higher growth path. While there were a few years in 1980s and 90s when
State’s GDP growth was higher than that of the country, it could not be
maintained and it is only from 2003-04 that we could clearly see a steady and
sustained improvement in GSDP which is higher than the country’s GDP.
This coupled with deceleration in population, which in itself is a major
breakthrough, the per capita income has risen sharply. The dramatic fall in
rural poverty represented by a sharp reduction in the percentage of population
below the poverty line is another happy augury. That a similar improvement
in poverty ratios could not be achieved in the urban areas is a matter of regret
and a pointer to the need for laying special emphasis on reduction of poverty
levels in urban areas.

03.24. The unprecedented rise in the state Domestic Product is

accompanied by an equally massive increase in expenditure in the last one
decade. The revenue expenditure of the State increased from Rs. 29,830
crores in 2003-04 to Rs. 76,557 crores in 2009-10. It would have been much
 25

more but for the reduction in interest burden as a result of the debt swap
scheme of the Government of India and the Debt Consolidation and Write-off
recommended by the 12th Finance Commission. The Financial position of the
State did not come under severe strain inspite of the substantial increase in the
revenue expenditure due to an impressive increase in State’s own revenue
which registered an increase from Rs.17,411 crores in 2003-04 to Rs.53,610
crores in 2009-10. During the same period the transfers from the Centre had
also increased from Rs.9458 crores to Rs. 25,353 crores. The combined effect
of the increase in State’s own resources coupled with larger devolution from
the Centre moderated the strain on the budget caused by the increase in
revenue expenditure.

03.25. A happy feature of the increase in Revenue expenditure, has,

however, been reduction of expenditure on salaries, wages and pensions from
82.28% of State’s own revenues in 1995-96 (highest in the last 20 years) to
52.85% in 2009-10. As pointed out earlier, it is the revenue receipts and
not containment of expenditure which caused this reduction in
percentage terms. Even in the year 2003-04, the expenditure on salaries,
wages and pensions as a percentage of State’s own revenues was as high
as 65.47%. Since expenditure cannot easily be reduced as commitments
once made cannot easily be given up, any variation in State’s own
revenues or transfers from the Centre will substantially alter the position
and create a serious problem in managing the State’s resources. The
declining trend in the ratio of expenditure on salaries, establishment and
pension to the State’s own revenue may get easily reversed and we may
return to the position obtaining in the middle 90s when it was as high as
80-82%. If revenue collections decline as a result of the adverse economic
scenario now evident not only in the country but in the world as a whole, we
will be faced with a situation of lack of support for meeting the expenditure
obligations. At the same time the State has made additional commitments
towards subsidy on Power and Food resulting in a situation of declining
revenues and increasing subsidy commitments. We cannot draw comfort
from what we had seen in the last 5 years and they may be more of an
exception than the rule. In the current year itself the adverse seasonal
conditions coupled with economic slowdown is a cause for serious concern.

03.26. In the context of declining resources both at the State and the
Centre and the various commitments of the Government on development of
irrigation projects for serving the needs of the hitherto underdeveloped areas
of the State, the Commission has to arrive at a judgement on how much of the
State’s resources can be spared for providing increase in wages to the State
employees. On the revenue expenditure side there are inevitable
commitments with regard to subsidy both on food and power and on the
capital expenditure, a large number of long gestation projects are in the
pipeline requiring enormous resources for their completion. The State’s
 26

performance in so far as the human development is concerned, is rather poor.

It is lagging behind its Southern counterparts for a long time and even to catch
up with them, the allocation of resources on primary health, education,
women empowerment and child development will require to be stepped up.

03.27. The Commission is of the view that a reasonable wage

increase is essential to retain the existing crop of employees and attract
people with enthusiasm and commitment to enter Government service.
We have tried to balance the welfare of the people of the State with the
need for fair increase for the Government employees. We hope that our
recommendations will meet the legitimate aspirations of the employees
and the State in turn would be able to meet the additional financial
commitment without compromising on the developmental goals of the
State as a whole.
 27

CHAPTER IV
Approach to Pay Revision

04.01. The Pay Commissions both at the Centre and the States had,
over the years, refined the process for determination of pay scales for
Government employees. The Central Government had appointed six Pay
Commissions while the State Government had appointed nine Pay
Commissions (including the present Commission) so far to look at the pay
structure of the Central and State employees respectively. These
Commissions had extensively studied the process of determination of pay of
the government servants and laid down the basic principles to be followed
while evolving a pay structure. These principles are known widely and need
no repetition.

04.02. In a complex organization like the Government a large number

of activities are performed by different functionaries with different skill sets
and it is the job of the Pay Revision Commissions to evaluate these skills and
recommend appropriate compensation packages for the employees. Over a
period of time certain relativities have been established and a hierarchical
structure has also been built up in the pay scales which are broadly followed
by different Pay Commissions. There is however, nothing sacrosanct about
this structure and instances are not wanting where modifications have been
made to this hierarchical structure depending upon the exigencies arising out
of Government policies and priorities at different points of time. Whenever
changes are effected and the pay scales are revised upwards for one set of
employees, those who are enjoying a pay scale similar to that category would
automatically raise the issue of an anomaly and agitate their case to obtain the
same benefit. Since modifications are made atleast in some pay scales with
resultant hue and cry from the aggrieved employees, the Governments
invariably responded with the appointment of Anomalies Committees. It is
unfortunate that, in our State, there was an Anomalies Committee for almost
every Pay Commission that was appointed so far. This is not a happy trend
and requires to be curbed. We have dealt with the issue of anomalies and
elaborated our approach to dealing with them elsewhere in the Report.

04.03. Suffice it to say that every pay revision commission is faced

with the dilemma of maintaining either the existing parities or alter some of
the parities depending upon the changing needs of the Government and
perceptions about the availability of the skilled man power and the ability of
the Government to attract those skilled people into Government service. The
Pay Commission is criticized if the statusquo is maintained on the ground
that the inequities that existed till then were not attended to and appropriate
 28

consideration not given to the changing role of Government and the additional
load thrust on some sections of the employees. If any alterations are made it is
subjected to criticism of conferring a benefit on some sections leaving the rest
who are similarly placed (salary-wise) without any change. The choice before
the Commission is not whether proactive measures should be taken or
maintain statusquo but undertake what needs to be done to attract and retain
employees and motivate them to put in their best efforts. The fear of criticism
should not, in our opinion, deter the Commission from making
recommendations which it considers reasonable, appropriate and just.

Indian economy and job market:

04.04. The Government does not function in a vacuum. The Pay

Commission has to necessarily take into account the state of the economy, the
priorities of the Government, the skills required to translate policies and
priorities into concrete actionable points and the manpower that can achieve
these objectives and the reasonable wage structure to motivate the employees
to deliver the results. The wage structure should be sustainable as the
cornerstone of Government employment is the stability that is assured to the
employee and his family. This is also the main attraction for those who seek
government employment.

04.05. The rapid strides made in recent times by the Indian economy as
a result of the opening up of the economy to the global competition has
brought in its wake new challenges in the employment market. Till the end of
1980s Government or the Public Sector was the main source of employment
for those competing in the organised job market. The growth of the
economy with services sector spearheading the GDP growth has shifted the
focus from employment in Government and the public sector to seeking jobs
in the Private Sector. The boom in out sourcing has brought employment
opportunities to India and the Indian job market got integrated into the world
market. The Government has therefore, become one of the employers
scouting for talent in the job market along with others who had the
ability and willingness to pay more as they had the contracts on hand and
had to hunt for the manpower to execute those contracts. This is a
phenomenon that one has to live with in future; though the job opportunities
in the private sector may fluctuate depending upon the state of the world
economy and the policies pursued by the Governments in different parts of
the World.

04.06. In the background of the winds of change sweeping the Nation,

we have to assess and determine an equitable wage structure for state
government employees. The reference points are (i) the wage structure
adopted by the Central Government reflected in their pay scales (ii) the
manner in which they were adopted by the States that follow the Central
 29

scales, (iii) the evolution of pay scales in States that follow their own pattern
and (iv) the market driven wages of the private sector with all its
uncertainties.

State Pay Scales versus Central Pay Scales

04.07. The issue normally raised before every State Pay Commission is
the comparison with the pay scales obtaining in the other States, the Central
Government and the private sector. It is also pointed out that many State
Governments have adopted the Central pay scales and there should, therefore,
be no hesitation for our State to broadly draw upon the recommendations
made by the Central Pay Commission. It is further mentioned that Hyderabad
and some major towns in the State have become hubs for I.T. industry and the
liberal pay packages obtaining in those companies have had an effect on
prices of essential commodities affecting thereby the purchasing power of the
Government servants. This development, it is urged, has also to be factored
in by the Commission while working out a fair wage for Government
employees.

04.08. The Commission has carefully considered these arguments. The

parity with the Central pay scales was discussed by several State Pay
Commissions and their reports indicate how the circumstances of the State are
different from those of the Centre and it was not feasible to adopt the Central
pay scales for State Government employees. The general perception that
some States have adopted the Central pay scales has to be qualified as all
those State Governments had appointed their own Committees to arrive
at the equivalence between the Central pay scales and their applicability
to the State employees. Instances are galore where modifications have
been made by the States to the pay scales recommended by the Central
Government while adopting them to their employees. We have also
noticed that a drastic reduction has been made in respect of allowances to
offset the additional financial commitment on the State arising out of the
adoption of the Central pay scales even with modifications. Hence, when
viewed as a package, the total emoluments accruing to a State Government
employee where Central pay scales have been adopted may not be radically
different from those available to our State Government employees even
without adoption of the Central pay scales.

04.09. We have done a study to compare the evolution of pay between

similarly placed Central and State Government employees. We have taken
the examples of Attender, Junior Assistant and Senior Assistant and traced
their emoluments (pay + DA) from 1.7.1986. The reason for the reference
date of 1.7.1986 is that the DA was merged with pay on 1.1.1986 both at the
Centre and at the State level. Hence comparison between emoluments
becomes easy. Though we had Automatic Advancement Scheme and the
possibility of normal promotion with G.O.I. having only the latter, we
 30

presumed that the persons appointed as Attender, Junior Assistant and Senior
Assistant on 1.1.1986 had continued in the same post and traced the growth of
emoluments from 1.1.1986 to 1.7.2008. The results are at Tables 1 (a) (b) and
(c). A negative figure in the last column indicates that the State employee is
drawing less to the extent of the amount indicated therein than his counterpart
at the Centre.

04.10. It is seen from these Tables that the Attender in the State was
drawing emoluments lower than his Central counterpart for 9 years out of 23
years and in all other years his emoluments were substantially higher. In the
case of Junior Assistant, the years covered by lower emoluments was 8 and
for the Senior Assistant it is 12 years out of 23 years. In the final analysis it
would work out that the State employees are either at par or better off than
their counterparts in Government of India. It should also be remembered that
our HRA and Automatic Advancement Scheme are far more liberal than that
of the Central Government.

Table 1(a) COMPARISON OF EMOLUMENTS IN STATE AND CENTRAL

SCALES FROM 1.7.1986
Attender
Emoluments in State Emoluments in Centre Difference
(State-
Pay Pay + DA Pay Total Centre)
Rs.740-15-950-20-1150 Rs.750-12-870-14-940
1.7.1986 740 770 750 780 -10
1.7.1987 755 853 762 861 -8
1.7.1988 770 947 774 952 -5
1.7.1989 785 1052 786 1053 -1
1.7.1990 800 1144 798 1141 3
1.7.1991 815 1304 810 1296 8
1.7.1992 830 1519 822 1504 15
1-7-1992 Rs.1375-25-1475-30-1625-
State Pay 40-1825-50-2075-60-2375
Revision
Pay 830
DA( 83%) 689
10% of Pay 100
Total emoluments 1619
Next Stage 1625 1625 822 1504 121
1-71993 1665 1790 834 1643 147
1.7.1994 1705 2003 846 1810 193
1.7.1995 1745 2254 858 2025 229
1.1.1996 Rs.2550-55-1660-60-
Central Pay 3200
Revision
Pay 858
DA (146%) 1270
Interm Relief 200
Fitment 40% 343
Total 2671
 31

Emoluments in State Emoluments in Differenc

Centre e (State-
Pay Pay + DA Pay Total Centre)
Rs.740-15-950-20-1150 Rs.750-12-870-14-
940
Next stage 2720
1.1.1996 1745 2369 2720 2720 -351
1.7.1996 1785 2518 2780 2891 -373
1.7.1997 1825 2819 2840 3209 -390
1.7.1998 1875 3113 2900 3538 -425
State Pay Rs.2550-50-2750-60-3050-
Revision 80-3450-100-3950-120-4550
Pay 1875
DA 1238
Fitment 469
Total 3581
Next stage 3650
1.7.1998 3650 3650 2900 3538 112
1.7.1999 3750 4210 2960 4055 155
1.7.2000 3850 4448 3020 4258 190
1.7.2001 3950 4693 3080 4466 227
1.7.2002 4070 5069 3140 4773 296
1.7.2003 4190 5458 3200 5088 370
State Pay Rs.3850-100-4150-110-
Revision 4480-115-4825-125-5200-
135-5605-145-6040-155-
6505-170-7015-185-7570-
200-8170-215-8600
Pay 4190
DA 1268
Fitment 670
6129
Next stage 6195
1.7.2003 6195 6195 3200 5088 1107
1.7.2004 6350 6649 3260 5575 1074
1.7.2005 6505 7240 3320 6026 1214
Central Pay Rs.4440-7440+130 IS
Revision Scale is take to make
apt comparison as
existing Last Grade
Service is being
continued.
1.1.2006 6505 7424 7480 7480 -56
1.7.2006 6675 7933 7710 7864 69
1.7.2007 6845 8908 7950 8666 242
1.7.2008 7015 9989 8190 9500 489
 32

Table 1(b) COMPARISON OF EMOLUMENTS IN STATE AND CENTRAL

SCALES FROM 1.7.1986
Junior Assistant

Emoluments in State Emoluments in Centre Difference

(State-
Pay Total Pay Total
Centre)
Rs.910-30-1240-1625 Rs. 950-20-1150-25-1400
1.7.1986 910 946 950 988 -42
1.7.1987 940 1062 970 1096 -34
1.7.1988 970 1193 990 1218 -25
1.7.1989 1000 1340 1010 1353 -13
1.7.1990 1030 1473 1030 1473 0
1.7.1991 1060 1696 1050 1680 16
1.7.1992 1090 1995 1070 1958 37
1-7-1992 Rs.1745-40-1825-50-
State Pay 2075-60-2375-75-2750-
Revision 90-3200-110-3420

Pay 1090
DA(
83%) 905
10% of
Pay 109
Total
Emolume
nts 2104
Next
Stage 2135 2135 1070 1958 177
1-71993 2195 2364 1090 2147 217
1.7.1994 2255 2639 1110 2375 264
1.7.1995 2315 2990 1130 2667 323
1.1.1996 Rs.3050-75-3950-80-4590
Central
Pay
Revision
Pay
DA
(146%)
Interm
Relief
Fitment
40%
Total
Next
stage 2315 3143 3500 3500 -357
1.7.1996 2375 3368 3575 3718 -350
1.7.1997 2450 3784 3650 4125 -341
1.7.1998 2525 4192 3725 4545 -353
 33

Emoluments in State Emoluments in Centre Difference

Pay Total Pay Total (State-
Centre)
Rs.910-30-1240-1625 Rs. 950-20-1150-25-1400
1.7.1998 Rs.3290-80-3450-100-
State Pay 3950-120-4550-150-
Revision 5300-170-6150-200-
6550
Pay 2525
DA 1667
Fitment 631
Total 4823
Next
stage 4850 4850 3725 4545 305
1.7.1999 5000 5614 3800 5206 408
1.7.2000 5150 5950 3875 5464 486
1.7.2001 5300 6297 3950 5728 569
1.7.2002 5470 6812 4030 6126 686
1.7.2003 5640 7347 4110 6535 812
1-7-2003 Rs.4825-125-5200-135-
State Pay 5605-145-6040-155-
Revision 6505-170-7015-185-
7570-200-8170-215-
8815-235-9520-255-
10285-280-10845
Pay 5640
DA 1707
Fitment 902
Total
Emolume
nts 8249
Next
stage 8385 8385 4110 6535 1850
1.7.2004 8600 9005 4190 7165 1840
1.7.2005 8815 9811 4270 7750 2061
1.1.2006 Rs.5200-20200+1800
Central
Pay
Revision
1.1.2006 8815 10061 9850 9850 211
1.7.2006 9050 10755 10146 10551 204
1.7.2007 9285 12084 10450 11390 694
1.7.2008 9520 13556 10770 12493 1063
 34

Table 1 (c) COMPARISON OF EMOLUMENTS IN STATE AND CENTRAL

SCALES FROM 1.7.1986
Senior Assistant
Emoluments in State Emoluments in Centre Difference
(State-
Pay Total Pay Total
Centre)
Rs.1100-40-1500-50-
Rs.1200-30-1540-40-2040
2050
1.7.1986 1100 1144 1200 1248 -104
1.7.1987 1140 1288 1230 1390 -102
1.7.1988 1180 1451 1260 1550 -99
1.7.1989 1220 1635 1290 1729 -94
1.7.1990 1260 1802 1320 1888 -86
1.7.1991 1300 2080 1350 2160 -80
1.7.1992 1340 2452 1380 2525 -73
1-7-1992 Rs.2195-60-2375-75-
State Pay 2750-90-3200-110-
Revision 3750-130-4400-160-
4560
Pay 1340
DA( 83%) 1112
10% of Pay 109
Total
Emoluments 2561
Next Stage 2600 2600 1380 2525 75
1-71993 2675 2881 1410 2778 103
1.7.1994 2750 3219 1440 3082 137
1.7.1995 2840 3668 1470 3469 199
1.1.1996 Rs.4000-100-6000
Central
Pay
Revision
Pay 1470
DA (146%) 2176
Interm
Relief 291
Fitment
40% 588
Total
Emoluments 4525
Next stage 2840 3855 4600 4600 -745
1.7.1996 2930 3855 4700 4888 -733
1.7.1997 3020 4664 4800 5424 -760
1.7.1998 3110 5163 4900 5978 -815
1.7.1998 Rs.4190-120-4550-
State Pay 150-5300-170-6150-
Revision 200-7150-250-8400-
300-8700
Pay 3110
DA 2053
Fitment 778
Total 5941
 35

Emoluments in State Emoluments in Centre Difference

(State-
Pay Total
Pay Total Centre)
Next stage 5980 5980 4900 5978 2
1.7.1999 6150 6905 5000 6850 55
1.7.2000 6350 7337 5100 7191 146
1.7.2001 6550 7782 5200 7540 242
1.7.2002 6750 8406 5300 8056 350
1.7.2003 6950 9053 5400 8586 467

1-7-2003 Rs.6195-155-6505-
State Pay 170-7015-185-7570-
Revision 200-8170-215-8815-
235-9520-255-10285-
280-11125-315-
12700-330-13030

Pay 6950
DA 2103
Fitment 1112
Total
Emoluments 10165
Next stage 10285 10285 5400 8586 1699
1.7.2004 10565 11063 5500 9405 1658
1.7.2005 10845 12071 5600 10164 1907
1.1.2006 Rs.5200/-20200 +Rs.2400/-
Central Grade Pay
Pay
Revision
1.1.2006 10845 12071 12080 12080 -9
1.7.2006 11125 13221 12450 12699 522
1.7.2007 11340 14758 12830 13985 773
1.7.2008 11655 16596 13220 15335 1261

04.11. The other aspect that one has to keep in view while looking at
the Central pay scales is that the employees are drawn from all over the
country and many of the offices of the Central Government are located at
State headquarters or in major cities or towns across the country with varying
levels of development while the jurisdiction and the spread of employees at
the State level is limited to the residents of the state or even the zones. Hence,
the problem faced by the Central Government employees is definitely more
complex than those of the State employees. It is also to be recognized that
Central Government employees at certain levels are liable for transfer outside
the State resulting in hardships which are not that acute in the case of State
employees who are liable for transfer mostly within the district or the zone
and in a few cases within the State. Moreover, as explained earlier our study
indicates that the State Government employees are not at a great disadvantage
vis-à-vis their counterparts in the Central Government. In fact, we find that
they are better off than their Central Government counterparts after every pay
revision and often without a revision as the structure of increments is better in
 36

the State than in the Centre and they get upgraded every five years thanks to
pay revision.

State Pay Scales versus Private Sector emoluments:

04.12. The parity with private sector, though not pressed vigorously, is
an issue that comes up quite often in various discussions. The sixth Central
Pay Commission got a study made about the package of benefits extended by
the private sector compared to the Central Government. There is a general
argument specially in the technical services that the employment
opportunities available in the private sector have made the Government
Service quite unattractive for talented people coming out of the prestigious
institutions in India. It would be worthwhile mentioning that the talented
students of IITs and IIMs have their sights set not in India but in other
countries in the West and in USA and jobs in India even in private sector are
given second preference by most of them. It is, therefore, not surprising that
very few of them are available for Government Service at the State level.
The recent economic slowdown has, however, brought home the point
that any amount of attractive pay package cannot be an effective
substitute for the security of tenure provided by Government service.
Moreover, the overall package offered in the private sector is worked out on a
“cost to the company basis” quantifying most of the benefits to the
employees. In the case of the Government, they are provided indirectly in the
form of perquisites like a Government Quarter, a car for Government use, a
telephone etc., which are not part of the pay. In a study Commissioned by the
6th Central Pay Commission and conducted by XLRI, Jamshedpur, it emerged
that while the compensation provided by the Government is higher at group C
& D levels, private sector compensation packages are marginally higher for
employees comparable to Group B employees and substantially higher for
posts comparable to Group A Officers in the Central Government. The study
also pointed out that the job security offered by the Government has
immense value that cannot be easily quantified and quantification will
only serve to underestimate the advantage it offers. It also pointed out that
fabulous salaries that are offered and find a mention in various papers and
magazines are extended to only a few of the students on campus recruitment.
It constitutes a very small portion of the total recruitment process and is
offered to the best students in the top end management schools. These are not
reflective of industry average. The recent reports that appeared in various
newspapers and magazines indicate that the uncertainties associated
with employment in the private sector have resulted in a renewed interest
in Government service by people coming out of top management and
technical institutions in India.

04.13. In view of the foregoing discussion the Commission feels that it

is not appropriate to compare the salary structure obtaining in the private
 37

sector with that provided in the State Governments or even in the Central
Government. It should also be remembered that the Government servants, in
general, also derive immense satisfaction implementing challenging
programmes that benefit various segments of the population. The private
service is primarily aimed at subserving the interests of the promoters of the
industry at any cost. The fact that even the listed companies are substantially
owned and controlled by a few families leads one to believe that the activities
of the company subserve the expansion of a private empire with little or no
benefit to the vast masses of the country. The dignity, the social status
enjoyed by the Government servant, the enormous job satisfaction, host
of perquisites that go with office and the job security coupled with
pension (available to those recruited prior to 1.9.2004) taken together
make the employment in Government as attractive as the highly paid
jobs in the private sector.

04.14. The comparison with the central pay scales was dealt with at
length and we have established that even those States that adopt the central
pay scales modify them to suit their requirements. It has also been noticed
that in addition to the modification of the scales the allowances are
substantially curtailed to limit the financial commitment of the State. States
that follow their Pay pattern are tuned to their special requirement and it
would be difficult to draw general lessons. We see an increasing trend to wait
for the Central Pay Commission Report and adopt it with such modification as
are necessary to suit the States’ needs. This only confirms our belief that each
state has to evolve its own pay scales for its employees or modify the central
pay pattern keeping in view the priorities of the Government, availability of
the skilled manpower and the historical evolution of the pay structure and the
relativities between Departments and the ability to raise resources to sustain
the wage bill.

Master Scale versus Pay Band and Grade Pay

04.15. As mentioned earlier the eight Pay Commissions who preceded

this Commission examined the pay structure of the State Government
employees. One of the major shifts in the determination of pay scales was
achieved in the year 1993 when the Pay Commission evolved a Master Scale.
The Master Scale was perhaps first introduced in the year 1974 in Karnataka
by its second Pay Commission with the 5th Pay Commission of Kerala (1989)
following it and later by the Government of Punjab. The Government of India
however, had distinct pay scales till the concept of pay band and grade pay
was evolved by the 6th Pay Commission which came into force from 1.1.2006.
The Government of A.P., however adopted the concept of the Master Scales
in 1993 itself. The master scale has a unique feature, namely, the increment
at any given pay point is the same in all scales because the individual scales
are nothing but segments of the master scale. Conversion of different pay
 38

scales into a Master Scale with no major problem to the various sections of
the employees was, in itself, a major achievement. The Master Scale which
was evolved by the 1993 Pay Commission has withstood the test of time. The
acceptance of the Master Scale was so overwhelming that the successive Pay
Commissions were requested by the Associations for the continuation of the
Master Scale. When the present Pay Commission held discussions with the
various Associations, they were requested for their views regarding the
concept of Pay Band and Grade Pay evolved by the 6th Pay Commission. All
the Associations, without exception have suggested continuation of the master
scale and expressed serious reservations about the new concept of pay band
and grade pay adopted by the Government of India.

04.16. The master scale evolved in the 1993 Pay Commission was
adopted without modifications by the 1999 Pay Commission. It was only in
the 2005 Pay Commission that it was modified. Though the number of grades
remained the same, modifications were made to the span and the rate of
increment which created discontentment among some sections of the
employees leading to the appointment of a One Man Commission to examine
the need for rectification of the discrepancies that have crept into the master
scale resulting in the increments in the revised scale being less than those
obtaining in the pre-revised pay scale of 1999.

04.17. The One Man Commission observed that while endorsing the
concept of the master scale, the Associations urged the reduction of the stages
from 84 to the existing 71 stages with consequent increase in the rate of
increment. The main grievance placed before the O.M.C. was that on fixation
of pay in the revised pay scale in respect of some grades the quantum of
increment on pay revision would be less than or equal to the increment they
would have drawn in the old pay scale. They also pointed out that the average
rate of increment was only 2.5% where as it should have been 2.96% as was
the case in the earlier pay scales. The Unions pleaded that the rate of
increment should reflect the increase due to fitment benefit and merger of DA
with pay. The One Man Committee pointed out that the master scale has been
evolved keeping in view a basic minimum and a maximum of pay and
therefore, the rate of increment had to be adjusted within the predetermined
maximum and the minimum. Keeping these two points in view and also the
fact that increases are provided in the quantum of increment once in three
years against the earlier 5 year intervals the PRC had evolved the revised
Master Scale. It also pointed out that by providing for an increase in the
quantum of increment every 3 years compared to the earlier 5 years span, the
employees would be able to get a higher amount of money earlier than in the
previous pay scale. The Committee however noticed that at some stages
consequent to the pay fixation as per the fixation formula the rate of
increment both in pay scales of 1999 and the revised pay scales of 2005
 39

happen to be the same. In a few instances the rate of increment was also less
than that obtaining in 1999 pay scales.
04.18. The Committee felt that a wholesale restructuring of the master
scale was neither required nor desirable. The Committee recommended to
retain the rate of increment as suggested by the 2005 P.R.C., up to the stage of
a pay of Rs.11,125/-. It suggested that for the pay beyond this limit the rate of
increment be increased and the periodicity be reduced. The number of stages
have been reduced to 79 as against 84 stages recommended by the P.R.C.
The revised master scale commencing from Rs.11,125/- up to Rs.30,765/-
with modifications in the rate of increment and the periodicity was accepted
by the Government. Thus the revised pay scale which is now in operation is
the scale as modified by the One Man Committee. The Committee had also
suggested that to overcome stagnation which was inevitable in some sections
of the employees stagnation increments up to 5 increments may be sanctioned
wherever warranted. The Committee also observed “The concept of a master
scale and all segment scales merging into it is a well thought out one and
therefore should not be easily discarded. This Committee feels that an
examination of the revision of the master scale any further than what it has
recommended should not be attempted adhoc but should be the subject matter
of an examination by the next Pay Commission”.
04.19. The foregoing discussion on approach to Pay Commission and
the observations of the OMC, 2006 point to the strides made by the State in
evolving an appropriate pay structure for its employees. Obviously the
Master Scale has the widest acceptance among the employees. They want it
to be retained. They would, however, like to see that the scale should also
contain an appropriate component of increase in the increments so that the
benefit of pay fixation is also reflected in the quantum and the size of
increments. It is heartening that we have a structure that is acceptable. The
attempt should be to protect it.
04.20. We have over the years succeeded in working out a package
which was independent of the Government of India. We have established
that non-adoption of Government of India Scales had in no way hurt the
employees as in majority of the years, their emoluments happened to be
higher than their counterparts at the Centre. What, therefore, remains
to be done is to retain the core principles of pay fixation that we have
evolved so far and look at relativities among employees keeping in view
the changing needs of the Government and the shifting profile of the job
market.
Uniformed Services, Teachers, Doctors of Ayush and Veterinarians: Our
Approach:

04.21. We have as a part of the exercise dealing with relativities,

looked at the pay structure of the Uniformed Services, Teachers, Doctors of
 40

the Ayush Department and the Veterinarians and worked out an appropriate
package for them. This has been done keeping in view the rapid
developments in this field in the last couple of decades and the way the other
States and the GoI have responded to these changes. We have also looked at
the structure of Pay Scales of the Para medical staff and made improvements
keeping in view the alternate employment opportunities available to them.

04.22. The earlier Commissions normally dealt with the representations

of the Departments in Volume II of the report. We are following a similar
pattern. However, we consider it necessary to broadly indicate our approach
in respect of three categories of employees who, in our opinion, constitute
distinct categories requiring special treatment. These categories are (1)
Uniformed Services (2) Teachers, (3) Doctors other than Allopathy. In
respect of Uniformed Services there was a general representation for parity
with the Police from various other Uniformed Services. In the case of teachers
there was a representation for an improvement in the pay scales for the
teacher community as a whole keeping in view the special accent on universal
primary education, professionalization of education and the need for restoring
the parities that existed with others in 1982 which were disturbed in the
subsequent revisions. As regards Doctors, the demand from Ayush Doctors
was for parity with Doctors in modern medicine while the Veterinarians
demanded one stage below the Allopathy Doctors.

04.23. While we have dealt with individual posts and the pay scales in
Volume II, we have in this chapter, broadly outlined our approach which
guided our final conclusions reflected in Volume II.

Uniformed Services:

04.24. While it is unusual to discuss the demands of individual

Departments in Part I of the Pay Revision Commission Report, we have made
an exception in this case as a number of issues have been raised by a group of
Departments coming together and presented a uniform stand before the
Commission seeking parity with Police. As the issues are similar and the
arguments advanced are identical we propose to discuss them together in this
Volume to avoid repetition when individual Departments are considered in
Volume II. Yet another reason for dealing with the Uniformed Services in
this Volume is the recommendations made by the Anomalies Committee,
2008 who have made some specific recommendations on this issue which are
at variance with the conclusions of Pay Commissions over two decades. The
Departments concerned are: The Department of Prisons, the Department of
Fire and Emergency Services, the Department of Forests, the Department
Excise & Prohibition and the Department of Transport, who are all seeking
parity in the pay scales of either some or all personnel with that of the pay
scales of the police personnel. The main point raised by most of these
 41

departments, particularly, the Department of Prisons and the Department of

Fire and Emergency Services is that the parity existed between the
Warder/Fireman, Chief Warder/Head Fireman of their Department with the
Police constable and Head Constable, which was disturbed by the Pay
Revision Commission of 1986 and that there is need for restoring the parity.
In some cases, the improvement in educational qualifications prescribed is
cited as the reason for parity while in others, the arduous nature of the work is
advanced as the argument for grant of pay scales on par with the Police
Constable / Head Constable.

04.25. Admittedly, the change in the pay scale of the Police Constable
vis-à-vis the Fireman in the case of Fire Department, the Warder in the case
of Prisons Department, the Constable in the case of the Excise Department,
and the Forest Beat Officer in the case of Forest department, arose as a result
of the recommendations of the Pay Revision Commission in 1986. We,
however, noticed that in some cases, there was no parity prior to 1986 but the
Departments have started representing for parity later on the ground that the
work is arduous, the rules were amended to equate the educational
qualifications on par with Constable, the training is similar etc. Since 1986
these departments have been presenting their case for parity with the Police
Constable and the rest of the people in their Departments with the hierarchy in
the Police Department and three Pay Revision Commissions, viz., the Pay
Revision Commissions of 1993, 1999 and 2005 have consistently rejected this
demand. It is also interesting to note that the submissions for parity made by
these Departments before the Anomalies Committees constituted in 1989,
1995 and 2004 to look into the anomalies, if any, in the recommendations of
the Pay Revision Commissions of 1986, 1993 and 1999 had also
unequivocally rejected parity and upheld the views of the Pay Commissions
which held that the nature of duties performed by the constable and the rest of
the Police hierarchy is different from those performed by equivalent cadres in
other departments and the difference in the pay structure was justified keeping
in view the various problems and difficulties faced by the Police in the
discharge of their duties. This should have normally set at rest any demand
for parity as obviously three Pay Revision Commissions and three Anomalies
Committees could not have been wrong in presuming that the Police
hierarchy deserved a higher pay scale than its counterparts in the departments
mentioned above.

04.26. However, unfortunately, the issue has been revived again by the
recommendations of the Anomalies Committee which was appointed
subsequent to the Pay Revision Commission in 2005. This Committee also
acted as One Man Committee immediately after the 2005 Pay Revision
Commission’s Report. Though the terms of reference of the One Man
Committee did not call upon the Committee to look into any representation
relating to anomalies, this Committee made certain recommendations relating
 42

to change in pay scales which obviously were rejected summarily by the

Government. The One Man Committee which submitted its report in 2006,
rejected the demand of the Fire and Emergency Services Department for
parity with the Police hierarchy starting from Fireman to the Assistant
Divisional Fire Officer but recommended pay scales on par with Police
Department in respect of the Prisons Department for the Warder, the Head
Warder, and the Chief Warder. The Committee suggested that they should be
put on the pay scale of Constable, Head Constable, and Assistant Sub
Inspector of Police respectively. As mentioned earlier, this recommendation
was not accepted. Another Committee headed by the same chairman, was
appointed as the Anomalies Committee. They submitted the report in the year
2008 wherein they recommended a parity in Pay Scales between Fireman and
the Constable, Station Fire Officer with Sub Inspector of Police, Assistant
Divisional Fire Officer with Inspector of Police and Divisional fire Officer
(District Fire Officer) with Deputy Superintendent of Police. This is in
contrast to the One Man Committee’s earlier Report rejecting parity between
the Police and the Fire Services. The only argument that was advanced in
favour of parity is that modern equipment is being procured for the Fire
Services Department and the personnel from the Police Department and the
Fire Services Department attend to similar work i.e., protection of life and
property and hence they should be put on the same pay scale. Similarly, they
reiterated their earlier recommendation for equating the pay scales of the
Warder, the Head Warder and the Chief Head Warder with Police constable,
Head Constable and the Assistant Sub Inspector of Police. They also
recommended similar parity between Excise constable, Head Constable and
Sub Inspector with Police constable, Head constable and the Sub Inspector.
They were silent so far as Forest & Transport is concerned.

04.27. In order to understand and evaluate the recommendations of the

Anomalies Committee of 2008, it would be necessary to look into the terms of
reference of the Committee. Para III of G.O.Ms.No. 219, GA (Spl A)
Department dated 7.4.2007 specifically stipulates that representations
regarding anomalies arising out of the recommendations of the Pay
Revision Commission 2005, shall only be considered.

04.28. Obviously, the so-called anomalies in respect of various

departments where parity was recommended between Police Department and
the other Departments in certain categories are not covered by the terms of
reference of the Anomalies Committee. The variations in pay scales are not
the creations of PRC 2005 but, have been in existence since 1986 or even
earlier in the case of some Departments. As already pointed out, the request
of the various departments for parity with the hierarchy in the Police
Department was considered subsequently by three Pay Revision Commissions
and was rejected. There were also three Anomalies Committee Reports of
1989, 1995 and 2004 which supported the stand of the Pay Revision
 43

Commission and held that the demand for parity is not justified and there
were sufficient and cogent reasons for maintaining the distinction between the
pay scales of the Police personnel and the personnel belonging to Fire and
Emergency Services, Forest Department, Excise & Prohibition Department,
Prisons Department etc.

04.29. It is high time that we set at rest this entire issue of parity
between the Police and the other Departments. This Commission is of the
view that simply because the personnel are called upon to don a uniform it
does not entitle them to get the same scale of pay. Similarly, educational
qualifications being similar also cannot be the sole criteria for determining the
pay scales of employees. While these two are relevant, there are other
overriding considerations which prompt the Pay Revision commission to
suggest the pay scale. It is well established by the three Pay Revision
Commissions that while the jobs performed by various Departments which
sought parity with the Police Department are involved in stressful duties, the
Police department is having duties and responsibilities of wider scope and
range and in a larger sense, it would be more strenuous and risky to perform
the duties in the Police Department. They stated that the marginal difference
in Scales which exists between the Police personnel and the other departments
which are claiming parity, is justified. This has been the view of not merely
one Commission, but the consistent stand of all Commissions that came after
1986 and as earlier stated, of the Anomalies Committees which followed
these Pay Revision Commissions. It is only the Anomalies Committee of
2008 which differed from this view and recommended parity. We have gone
through the recommendations of the Committee carefully and find that there
is no merit in these recommendations and the Government have already
rejected the recommendations. We agree with the views of the earlier
Commissions that the difference that exists between the pay scales of the
Police department and the other Departments which are claiming parity
like Fire and Emergency Services Department, Forest Department,
Prisons Department, Excise Department and Transport Department is
justified and the demand for parity deserves no consideration.

04.30. However, we are aware of the difficulties faced by the various

Departments that pleaded for parity. Keeping the nature of the job in view we
have worked out an appropriate salary structure for the Uniformed Service
and in doing so ensured that the relative positions between Police and the
other Uniformed Services that have come to stay over the years are kept in
view. In this process we have noticed that there are considerable variations
within the Uniformed Services. While some Departments have purely
regulatory and enforcement functions as in the case of Police, Prisons, Fire
Services and Forest, others like Excise and Transport have both regulatory
and revenue collection functions. In the case of Transport there are also
technical and non-technical categories. Consequently there are differences in
 44

the various levels at which the officers are inducted, the qualifications
prescribed for entry into those departments which are revenue earning and
this hierarchy does not conform to the Police hierarchy. We have tried to
factor these variations in arriving at the pay scales for the posts in Excise and
Transport. The specific details are contained in Volume II of the Report.

04.31. Broadly the approach adopted by us was to equate the Head

Constable with UD Revenue Inspector and the Sub-Inspector with Deputy
MRO. In respect of Uniformed Services with mostly regulatory functions, we
have maintained certain equations which are indicated in Table 2.

Table -2

Pay Scales among various cadres in the Uniformed cadres visa vis Police
Department

Department Categories
Police Police Police Head Sub- Inspector
Constable Constable Inspector
(each is one stage below the designation of Police Officer mentioned
above)
Forest Forest Beat Forest Section Deputy Range Range
Department Officer Officer Officer Officer
Prisons
Warder Head Warder Deputy Jailor Jailor
Department
Assistant
Leading Station Fire Divisional
Fire Services Fireman
Fireman Officer Fire
Officer

04.32 The Commission would like to state that the package is evolved
keeping in view the socio economic environment in which the police
personnel and the other Uniformed Service have to work and as a matter of
deliberate policy they are placed in scales which are considered appropriate
by the Commission. If in that process those with similar pay scales in the pre-
revised pay scales in other Departments of the Government have not got any
increase or only a modest increase, it would not, according to us, constitute an
anomaly. We consider that the earlier correspondence in scale was more of
an accident than a matter of deliberate choice specially when the posts are not
analogous and the functions discharged are different.

Teachers
04.33. The teachers were regrouped into 3 categories and 3 distinct pay
scales were evolved by the Government in 1982. At the lowest level of the
ladder is the Secondary Grade Teacher with the School Assistant above him
 45

and the Head Master of the High School above the School Assistant. In the
year 1982 when regrouping was done the Secondary Grade Teacher was
placed in the pay scale of Rs.530-850, while the School Assistant was given a
pay scale of Rs.700-1200 and the Head Master was placed in the pay scale of
Rs.900-1500. In the case of SGT the 2005 pay scale was Rs.5470-12385 and
it is noticed that in all the pay revisions the equivalent scale alone was
awarded to this category. In the case of the School Assistant and the Head
Masters there were some improvements made on some occasions resulting in
their being placed in scales slightly higher than the normal replacements
scales. The Teachers Unions pointed out that while fixing the minimum in
the scale of SGT in some pay revisions, injustice was meted out to them by
fixing it at a level lower than what should have been fixed after merging the
DA with basic pay and adding the fitment benefit. According to the Unions
the basic pay for SGT should have been Rs.1080-1800 in 1986 revision while
it was fixed only at Rs.1010-1800 as a result of which there was a loss of 2
increments. They further pointed out that even in 1998 and 2003 the basic
pay of the revised pay scales was less than what should have been awarded
after merging D.A. with pay and adding the amount as per fitment formula
resulting in loss of one increment each.

04.34. It is true that the successive pay revisions largely gave

equivalent pay scales while working out the revised pay scales with hardly
any improvements. On the other hand, those in similar pay scales in the year
1982 had been able to overtake the teachers and got the benefit of higher
scales due to improvements made by the various commissions over their
normal replacement scales.

04.35. The Teacher Unions and the Representatives of the teachers in

the Legislative Council pleaded for a review of the structure and suggested
sanction of a better set of pay scales for the teachers keeping in view the
improvements that have been effected by the Central Government to the
teachers through the 6th Pay Commission and substantial improvements
recommended by the UGC for the College and University teachers. They
pointed out that world over teachers enjoy a special status and are paid well
in view of the enormous responsibilities that they carry towards building
human character that results in emergence of a more ‘just and humane
society’.

04.36. The Commission is convinced that there is need for treating the
teachers as a distinct and independent category and extend a special treatment
to them. The Government itself felt the need for such an approach and way
back in 1982 regrouped them into three categories and devised a special pay
structure. There was, however, no comprehensive review of these scales after
1982 and it is time that such an exercise is attempted at least now as nearly 25
years have gone by since this reorganization. The Commission feels that the
 46

present regrouping is sound and needs no change. There is, however, need to
improve the pay scales keeping in view the increase in the work load,
mutifarious activities entrusted to the Teachers and the need for attracting and
retaining people with good qualifications in the teaching profession. Our
recommendations on this issue are available in Volume II.

04.37. The Commission is conscious that our recommendation would

result in teachers getting higher scales than others who might be in equivalent
scales. However, since this is a special dispensation consciously arrived at
for Teachers who have been recognized as a distinct category we believe there
should be no scope to entertain any representations from others for extension
of these scales or further improvements to their scales on the ground that they
were on par with teachers in the 2005 pay scales and the parity that existed
was disturbed. We are of the view that parity, if any, was accidental and there
was no deliberate attempt by the Pay Commissions to equate the Teachers
with any other category of Government servants.

04.38. The change in pay scales of the Teachers raises another issue of
the scales of pay of the executives in the School Education since there is a
channel of Promotion available to the teachers into the executive line.
Wherever it fits into our normal scheme of fixation of pay scales, we effected
changes in the pay scales of those executives. There may be a few instances
where the feeder category and the promotion category are in the same pay
scale or the pay in the promotion category is less than that in the feeder
category. We do not consider it as an anomaly as the teachers have this
additional line of promotion into the executive hierarchy while their normal
activity is teaching and are selected for that purpose. Even the Head Master is
expected to teach while supervising the work of the other teachers. He is not a
pure Administrator. If, therefore, the teacher chooses to change track and
move from teaching to pure administration, it is a conscious decision of
the teacher and he should therefore be willing to accept the consequential
changes in pay even if it is disadvantageous to him at the stage when
switch to administrative line takes place. If he changes into executive line
it is either due to an inclination or flair for administration or based on
expectation of better promotional opportunities. It is also, often, inspired
by a desire to exercise control. Since the teacher is recruited primarily to
teach and a separate dispensation for teachers was given way back in
1982, on grounds of ensuring academic excellence we considered it
appropriate to look into the pay structure of Teachers treating them as a
separate homogenous group and improved it. It is not our intention to
confer additional benefits on executives in the School Education stream,
who have to be naturally compared with the other similarly placed
employees in Administrative line in Government Departments.
 47

04.39. The Teachers Associations had drawn the attention of the

Commission to a special feature obtaining only in respect of teachers. They
pointed out that teachers selected through prescribed process are paid only
consolidated amount for a period of two years after which they are placed on
a regular pay scale. The Commission feels that if a person is appointed after
following the prescribed process for selection and given an appointment order
it would be unfair to provide him only a stipend or a nominal amount instead
of placing him in a regular pay scale. This amounts to discrimination as all
other employees when recruited and appointed are placed in regular pay scale.
There is no reason why teachers alone should be singled out for a special
treatment of this nature. We recommended separately that this period of two
years also be counted for purposes of pension.

04.40. It is no doubt true that teachers are recruited on a large scale

which is partly due to ever increasing demand for primary education and
partly owing to the Centrally Sponsored Schemes supporting the expansion of
the reach of primary education. The high numbers cannot be quoted as the
reason for low wages for the first two years. The Commission recommends
that the teachers, as in the case of other State Government employees,
should be placed on a regular pay scale from the time they join service if
they are recruited following the prescribed process.

04.41. The Associations have also mentioned that a large number of

aided private schools and colleges are reaching the stage of extinction in view
of the Government policy to discontinue the grant-in-aid whenever the teacher
/lecturer covered by the grant-in-aid retires from service. They pointed out
that these institutions were set up by the philanthropists in response to the
demand for school/higher education and as substitute for the Government
starting a full-fledged school or a Government college. It is obvious that
these institutions served the needs of the area and many of them were
recognized as leading educational institutions surpassing even some of the
Government schools and colleges. In case the grant-in-aid is discontinued
there will be a reduction in the admissions and that itself, we understand, is
cited as the reason for further discontinuance of grant. While this is an issue
concerning policy of the Government towards the school and higher
education, the Commission would only like to state that these private
institutions were in fact substitute for Government institutions and there is
every need to strengthen them through appropriate monetary support from the
Government. The discontinuance of grant and the consequent non-filling up
of vacancies or appointment of contract teachers on meagre remuneration who
do not have adequate interest would lead to a vicious circle of fall in strength
leading to abolition of posts and the abolition of posts in turn leading to a
further fall in students strength. We are also aware that the winding up of
these institutions may indeed benefit the management as they can easily
convert them into shopping malls or commercial establishments or transform
 48

into corporate educational institutions and reap huge benefits. It is the general
public that will suffer as they will be driven to seek admission in corporate
schools and colleges on whose fee structure the Government has no control.
Though it is a matter which is in the realm of policy, we would still
recommend that Government should get this whole issue examined in
depth and appropriate solution found to ensure that educational
institutions built over a period of time are not allowed to fall by the way
side.

Medical Officers of Ayush and Veterinarians

04.42. There have been several representations from the Doctors

belonging to the Department of Ayush for parity with the Doctors under the
Department of Medical & Health. The post graduate doctors in the Ayush
Department who are on the teaching line have represented for UGC pay scales
on the ground that the Allopathy doctors in the teaching line have been
assigned the UGC pay scales. They have also pointed out that even the 5th
Central Pay Commission equated them with the doctors belonging to
Allopathy and the 6th Central Pay Commission continued that practice.
Veterinary doctors have represented to us for placing them at least one stage
below the Allopathy doctors on the ground that they enjoyed that position till
almost 1999 when it was disturbed and the Allopathy doctors have been given
a substantial hike in the pay scale and also other perquisites.

04.43. The Commission has given serious consideration to the

submissions made by the doctors from Ayush and the Veterinary
Department. One significant feature that we have noticed is that while at
different points of time the veterinary doctors were one stage below the
Allopathy doctors, such an equation was disturbed frequently and the orders
issued in 2001 were not the only exception. Based on the recommendations of
the Anomalies and Regrouping Committee of 1989 the equation between
Veterinarians and the allopathy doctors was disturbed. The relative position
between the Civil Asst.Surgeon, Veterinary Assistant Surgeon, Medical
Officer of Ayush and the Agricultural Officer over various Pay Commissions
is given below.

Comparative Statement of pay scales of the Medical Officers, Veterinarians and

Agricultural Officers from time to time:

Sl. 1969 1974 1978 1986 1993 1999 2005

Category
No (Rs.)
1 Civil 400- 600- 900- 1810- 3640- 6950- 11755-
Assistant 800 1100 1500 3230 7580 14425 26300
Surgeon (XVII) (XVII) (XVIII) (XVII) (XX) (XX) (XXII)
1980- 7900-
3500 15475
(XVIII) (XXII)
 49

Sl. 1969 1974 1978 1986 1993 1999 2005

Category
No
2 Veterinary 300- 530- 800- 1550- 3310- 6350- 9285-
Assistant 600 1050 1450 3050 6840 13000 21550
Surgeon (XV) (XVI) (XVII) (XVI) (XIX) (XIX) (XIX)
3 Agricultur 250- 480- 750- 1380- 3110- 5980- 9285-
al Officer 500 900 1300 2750 6380 12100 21550
(XIV) (XV) (XVI) (XV) (XVIII) (XVIII) (XIX)
4 Medical 200- 430- 750- 1550- 3310- 6350- 9285-
Officer 400 800 1300 3050 6840 13000 21550
under (XII) (XIV) (XVI) (XVI) (XIX) (XIX) (XIX)
Ayush

04.44. It may thus be seen that the equation between Civil Asst.
Surgeon and Veterinary Asst. Surgeon varied considerably in different Pay
Commissions. Even when the Pay Commission tried to establish a parity it
was immediately set-aside by either a Regrouping Committee or a Task Force
which recommend higher pay scales for the Civil Asst. Surgeons.

04.45. As regards Ayush it is a relatively new department and they

have been enjoying an equation with the Veterinary Officers since 1986.

04.46. We do not subscribe to the view that the Ayush doctors should
be placed at par with their counter parts in the M&H Department. As regards
the request of teaching faculty of Ayush Department for UGC pay scales we
would like to say that it does not fall within the purview of this Commission.

04.47. We however, feel that the Ayush doctors and the Veterinarians
will have to be treated as distinct category and will have to be assigned pay
scales which are independent of other departments. A modest attempt was
done in this direction by 2005 Commission. They have tried to distinguish
the Veterinary doctors at the level of Asst. Director and Deputy Director from
the Asst. Director and Deputy Director of Agriculture Department by
assigning a higher pay scale to the former. However, this was undone by the
recommendations of the Anomalies Committee which again equated the AD
& DD (Agriculture) with Assistant Director and Deputy Director of
Veterinary Department.

04.48. We feel that the doctor’s community will have to be dealt with
separately and within this community there can be hierarchies. Doctors
dealing with different systems can have different pay scales. We have to
necessarily distinguish those who deal with Indian system of Medicine from
those that administer modern system of Medicine like Allopathy and another
set of Doctors who deal with the ailments of animals. That is what we
propose to do now.
 50

04.49. We propose to assign pay scales to the Medical Officer, the

Senior Medical officer and the Chief Medical Officer of Ayush on par with
the pay scales of the Veterinary Asst. Surgeon, the Asst. Director and the Dy.
Director of the Veterinary Department. These constitute distinct categories
within the medical fraternity and we have placed them in a set of pay scales
based on the parities which the Ayush and the Veterinary Department have
enjoyed over years. We have equated the Assistant Director (Animal
Husbandry) and the Senior Medical Officer of Ayush with Civil Assistant
Surgeon of Allopathy and the Deputy Director (Animal Husbandry) and Chief
Medical Officer of Ayush with Deputy Civil Surgeon of Allopathy. We have
improved the scale of Veterinary Assistant Surgeon and Medical Officer of
Ayush by one grade. The pay scales we have assigned are higher than the pay
scales of other development departments or those that are involved in
extension and research. But that is a conscious decision taken by the
Commission, keeping in view the changing role of these functionaries in the
last two decades.

Para Medical Services:

04.50. These services play a critical role as support services for
delivery of high quality medical care. The vast improvements in Technology
coupled with the need to acquire and frequently replace sophisticated
equipment has increased the demand for people with high order of skills. The
sudden expansion of the medical care industry in the last two decades has also
brought into focus the need to train and retain qualified people in Government
service. In the area of public health the role of the field functionaries has
expanded due to emphasis on containment of both common epidemics and
dreaded diseases like AIDS. It is in this backdrop that we reviewed the pay
scales of the support structure of the curative and preventive branches of
Medicine.
 51

CHAPTER V
Recommended Pay Structure

05.01. The overwhelming support to the Master Scale from all

Associations is heartening and it is a matter of great satisfaction that way back
in 1993 we were able to conceive of a structure which has withstood the test
of time and continues to be relevant even today. The concept of Pay Band
and Grade Pay evolved by the 6th Central Pay Commission found no support
from the State Associations. The Master Scale has therefore come to stay.
What the present Pay Commission is charged with is the responsibility of
reviewing this master scale and restructure it in such a way that the grades,
the span and the rate of increments etc., are determined scientifically to avoid
a recurrence of the problem that was encountered in the last Pay Commission.
This is expected to be done keeping the essential ingredients of the Master
Scale in view as the successive Commissions and the One Man Committee
2006 have found them to be sound, and reasonable. As mentioned earlier all
the staff Associations unequivocally recommended the continuation of the
concept of the Master Scale.

05.02. The present Commission has taken into account the experience
of the evolution of the Master Scale from 1993 and the special problems
encountered in the implementation of the Master Scale as devised by the 2005
P.R.C. As was pointed out by many of the Associations the major drawback
of Master Scale of 2005 was that the quantum of increment was less than
what was available in corresponding pay scale of 1999 in some segments of
the scale. The Associations felt that this problem arose because of the
enhancement of the stages from the erstwhile 71 to 84 and increase in the
stages of increment from 13 to 27. The reason advanced by the P.R.C., for
enhancing the stages from 71 to 84 was to remove stagnation and the
increase in the stages of increments was conceived to enable the employees
to get rises in increment at more frequent intervals than before. While the
quantum of increment was being revised once in 5 years under the 93 and 99
Pay Commission the time span was reduced to 3 years in 2005. Our own
understanding is that the problem for the Master Scale arose not out of the
increase in the stages or the reduction in the span for the increment. It is the
quantum of increment which was the cause of grievance of the employees.

05.03. We are convinced that the employees would like to have

increases in the quantum of increment once in 3 years instead of 5 years and
would like to continue to draw increments without facing the prospect of
stagnation. The crux of the problem therefore, lies in the quantum of
increment rather than the stages in the pay scale or the stages in the
increment. The Commission therefore recommends the continuation of
 52

the Master Scale as it has not only stood the test of time but has also the
widest acceptance among the employees.

05.04. The Associations have brought to the notice of the Commission

that the O.M.C., had not provided relief to the employees who were in the pay
range of Rs.3850-11,125/-. The O.M.C., which examined the whole issue
found that there was a skewness in the pay scale beyond Rs.11125/- which
required to be attended to. Obviously there were no distortions in the pay
scale upto that point. Hence the grievance of the Associations that employees
at the lower end of the pay scale suffered as a result of O.M.C., not giving
them relief is not well founded. The JAC in its memorandum had provided a
table showing loss suffered by the employees upto the pay range of
Rs.11125/- on the assumption that if the rate of increment had been retained at
2.96% of the pay they would have drawn a much higher level of emoluments.

05.05. The conclusion is not supported by facts. The assumption made

in this inference is that the 1993 and 1999 Commissions had maintained a
uniform 2.96% increment to the basic pay at every stage of the pay scale.
This is not true. While the average rate of increment was 2.91% and 2.96% in
the 1993 and 1999 revisions respectively, it was not maintained throughout
the pay scale. The average rate of increment as a percentage of pay upto
Rs.10845 (of 2005) was 2.56% in 2005 pay scale while for equivalent pay of
Rs.3880 (1993) it was 2.63% and 2.73% in 1999 (Rs.7650). Thus the
argument that grave injustice was done for those in the Pay range upto
Rs.11,125 in 2005 pay scale only is misleading. We cannot arrive at an
average for the pay scale as a whole and expect every employee starting from
the lowest rank to the highest rank to have the same benefit of increment. This
would amount to ignoring the structure of the scale of pay and the need for
better remuneration for more skilled services or for higher responsibilities.
Moreover an average, if it is to be taken, has to be taken for the Pay Scale as a
whole and not a segment and if that norm is applied, the section of the
employees referred to in the Memorandum have a rate of increment which is
on par with what was obtaining in 1993 and 1999. This is not a distortion
created by the 2005 Commission. The Commission therefore rejects the
contention that the employees in the lower range of Pay Scales suffered
substantial loss as a result of 2005 Pay Commission’s recommendation.

05.06. We have not found any inherent drawback in the existing

Master Scale and we, therefore, adopted it and made changes wherever
necessary.

05.07. The next issue we addressed in designing the Master Scale is the
intervals at which the quantum of increment should be increased. There was a
five year interval built into the Scale when it was first evolved in 1993which
was continued by the 1999 Commission. In 2005 the interval was reduced to
 53

3 years. We had given serious consideration to the issue of reverting to

the 5 year interval as evolved by the 1993 Commission, keeping in view
the opposition of the Associations to the changes effected by the 2005
Commission. We felt that it would be a retrograde step and should be
avoided. We felt that the concern of the Association was more about the
quantum and would obviously welcome the increases in quantum every 3
years. We have, therefore, retained the 3 yearly step up in quantum of
increment.

05.08. We have also ensured that there is a reasonable increase in the

quantum of increment in absolute terms so that at no point the employee
would face a situation of reduced quantum of increment as a result of fixation
of pay in the revised pay scales. We have, in fact, ensured that the quantum
of increment is not only reasonable but also attractive. We have also
increased the span of the scales to accommodate people with long service so
that they would not stagnate and will continue to get the benefit of
increments. In the event of stagnation which should not normally arise, we
recommend grant of three stagnation increments.

Minimum Pay

05.09. The JAC in its Memorandum requested that the minimum pay
may be fixed at Rs.8120/- on the ground that the lowest paid employee in
Government of India will be getting Rs.8120/- on appointment on 1.7.2008
and that the same minimum pay should be applied to the State Government
employees. It would be necessary to view this demand in the overall context
of the recommendations of the Sixth Pay Commission. The sixth Pay
Commission had identified the minimum amount required based upon the
criteria set by the 15th International Labour Conference. According to them,
the minimum salary should be in the vicinity of Rs.5479/- per month as on
1.1.2006 (para 2.2.1. of the Report of the 6th Central Pay Commission).
Based upon this approach, the S1 Scale which was the starting scale of the
lowest paid employee in the Government of India, which was Rs.2550-3200
in the pre-revised scale was to be revised as Rs.4440-7440 + Rs.1300 as grade
pay. The Commission, however, recommended separately that Group D
category which consists of the scales S1 to S3 in Government of India should
cease to exist and that there should be no further recruitment to Group D.
05.10. The 6th Central Pay Commission pointed out that most of the
jobs in Government are skilled and that skill has to manifest in the form of
pay scales and the minimum qualifications prescribed for jobs. They pointed
out that jobs which are not actually of a skilled nature are either infructuous or
can be outsourced or can be easily performed by skilled workers in addition to
their existing duties. They, therefore, recommended that future recruitment to
Government would be only for category C employees and the Category D
would stand abolished. Since there are a large number of employees in
 54

category D, they suggested that they be placed in PB-1 scale if they already
have necessary qualifications for Group C employment and those who do not
have the qualifications should be trained to acquire skills, which will facilitate
a useful performance of functions in the Government. This in effect means
that all those presently performing functions which are akin to those
discharged by Class IV will discontinue them and get absorbed as LDCs,
Typists, Stenographers etc.

05.11. In our interaction with the Associations a specific point was

raised by the Commission about the desirability of abolishing Class IV as was
done in Government of India. The Unions and various Service Associations
have opposed this suggestion and stressed the need for continuing the Class
IV service. The question, therefore, arises as to how to determine the
minimum pay in the context of disappearance of last grade service altogether
in the Government of India pay scales which, however, will continue in the
State Govt. We are aware that some of the State Governments adopt the
Government of India pay scales with suitable modifications. Our examination
of the revised pay scales of those States indicate that they had retained Class
IV as a distinct category and applied pay scales starting from S1 to S3 of
Government of India to their employees who were in Class IV service instead
of applying pay scale of PB 1 which is the scale given to the employees in
Government of India after the abolition of category D and upgrading the
existing incumbents to category C. It is, therefore, pertinent for us to look at
the pay band and grade pay as given for S-1 for determination of the
minimum pay as we do not propose nor are Associations agreeable to the
abolition of Class IV and stoppage of further recruitment to that category.
Applying the formula mentioned above, the minimum pay would be as
follows:
Pay Scale of S1 Category under Sixth Central Pay Commission:

Pay in Pay Band - Rs. 4440

Grade Pay - Rs. 1300
---------------
Rs. 5740
DA on the revised pay scale as on
1.7.08 (16%) Rs. 918
--------------
Rs. 6658 or Rs.6660/-
05.12. This is in contrast to the claim of the JAC that a minimum pay
of Rs.8120/- should be fixed on the ground that PB1 has a basic pay of
Rs.5200 and Grade Pay of Rs.1800 totaling to Rs.7000/- and with the DA of
Rs.1120/- (16% as on 1.7.2008) it would work out to Rs. 8120/-. As pointed
out above, the comparison made by the JAC is not between the two
similarly placed categories and hence not valid. The appropriate way of
 55

looking at a comparison with the pay scales of Government of India is to

look at S1 category of pay scale which is the basic pay scale of the lowest
paid employee in the Government of India indicated by the Sixth Pay
Commission and taking into account its equivalent pay scale for the
purpose of comparing the minimum pay of the lowest paid employee in
the State Government. We cannot compare the salary of an upgraded
service with the lowest category in the State when we are of the firm view
that Class-IV will continue unlike in Government of India.

05.13. We have also looked at the validity of this minimum pay of

Rs.6660/- with reference to the cost of essential commodities etc., which were
taken into account by the Government of India while arriving at a minimum
pay of Rs.5478/- as on 1.1.2006. The table below gives details of the cost of
various commodities taken into account by our Commission which indicates
that as on 1.7.2008, the minimum requirement of pay for the lowest paid
employee would be around Rs.6690/-.
Need based Minimum Wage

Items @ Per Day PCU Per Month 3 Price per KG Total cost
in gms @ CU (in Kg) as per rates on
01.07.2008#
Rs.
A. Food Items
Rice 475 42.75 20 855
Dal 80 7.2 40 288
Vegetables * 300 27 30 710
Fruits * 120 10.8 40 440
Milk 200 ML 18 Lt 24 432
Sugar and 56 5 25 125
Jaggery
Edible Oil 40 3.6 78 280
Fish 2.5 65 163
Meat 5 185 925
Egg 90 2.5 225
Total 4443
Add 20% for variation in prices 889
Total on food items – A 5332
B. Clothing * 5.5 Mt 90 Per Mt. 550
Detergents etc 200 200
Total Clothing 750
B
Total Expenditure Food & Clothing A + B 6082
C Other Expenditure $ 608
10% on Total Expenditure on Food and Clothing
Minimum Wage Required A+B+C 6690
 56

@ as adopted by the Sixth Central Pay Commission. PCU stands for Per Day
Consumption Unit. 3 CU stands for three consumption units
#Source : Average Monthly Consumer Prices for Industrial Workers
Published by the Labour Bureau, Simla. The centers are Godavarikhani,
Guntur, Hyderabad, Vijayawada, Visakhapatnam, Warangal. The highest
price is taken.
Additional expenditure is taken at only 10% as medical reimbursement,
educational concession are available.

* Items not covered by the publication of Labour Bureau. Adopted from the
Sixth Central Pay Commission Report with reasonable increase.
$The other expenditure does not include expenditure on items for which
either reimbursement or compensation either fully or partially is admissible.

05.14. We also scrutinized the calculation of minimum wage contained

in the Memorandum of the A.P. Secretariat Employees Federation wherein
they argued in favour of a minimum pay of Rs.8,500/- against an expenditure
of Rs.8886/- worked out by them. To support this figure they gave a table at
pages 13-15 of their Memorandum. While we do not endorse either the items
of consumption, the number of Units mentioned in the Table or the rates
adopted by them, we tried broadly to see how our own working of the
minimum wage as per our table compared with the table given by the
A.P.Secretariat Employees Federation. The essential difference is that the
Secretariat Employees Federation assumed that the family consisted of 4
members, while the Central Pay Commissions 5th and 6th adopted a family
unit of 3 and not 4. They stated that normally the minimum salary is
applicable at a time when a person joins Government which will usually be at
young age and may not even be married and will not have responsibility of
parents or children. We accept this approach of the Central Pay
Commissions and if we reduce proportionately the total expense per month
of Rs.8886/- for 4 members to a family unit of 3, the amount required
would work out to Rs.6665/- per month. Even this calculation thus supports
our contention that the minimum salary should be around Rs.6700/- per
month. This figure also reinforces the minimum pay arrived at notionally for
the lowest paid employee of the Central Government had Group D remained
in existence. As earlier pointed out by us the State Governments which have
adopted the Central Government’s pay scales for their employees have also
adopted equivalent of S-1 namely Rs.4400 plus Grade Pay of Rs.1300 as on
1.1.2006 for its Class IV employees.

05.15. The foregoing discussion established that the minimum pay

should be around Rs.6700/- p.m. The Commission, therefore,
recommends a minimum pay of Rs.6700/- p.m. as on 1-7-2008.
 57

Maximum Pay:
05.16. The Minimum Pay having been decided, the Commission
addressed the issue of Maximum Pay keeping in view the representations
received from various Associations which pleaded for an increase in the ratio
in view of the enormous responsibilities shouldered by senior functionaries in
the Government. The JAC, in its Memorandum, suggested a ratio of 1:9.5
between the minimum and the maximum pay while the Secretariat Employees
Federation suggested 1:8.7. The previous Pay Commission recommended a
ratio of 1:7.99. As pointed out by us earlier, the study conducted at the
instance of the Sixth Central pay Commission pointed out that the salaries in
the private sector are lower than the corresponding emoluments in the case of
Government employees in lower and middle segments. In the case of the
higher segments private sector emoluments are far higher than those available
to senior level functionaries in Government. Since Government will have to
set the benchmark for salaries for the lowest paid employees, we have
suggested a fair wage based on various parameters as the Minimum Pay. As
regards the Maximum Pay, we had in our earlier discussion on the issue,
pointed out how the job security is an invaluable asset to the Government
servant and hence any comparison with the pay scales of the private sector at
the higher levels should take this vital factor into account. Keeping in view
the need to attract and retain qualified and committed people in
Government service, we recommend a maximum pay of Rs.55,660/-
which represents a minimum to maximum ratio of 1:8.31. We feel that
this modest increase in the ratio over the recommendations of the last
Pay Commission is reasonable and should satisfy all sections of the
employees and the officers.

Master Scale and its segments:

05.17. The minimum and the maximum having been fixed the issue
now for consideration is the number of scales which are to be carved out of
the Master Scale as evolved and the span of each one of the scales. There are
at present 32 scales and we propose to continue the same number of scales.
As regards the span we have made an effort at increasing the span beyond
what is already in operation to take care of possible cases of stagnation,
specially in the lower segments of the pay scale. As earlier mentioned, we had
devised an appropriate increment structure and it would ensure that there is a
reasonable increase in the quantum of increment at every stage of the Scale.

05.18. Since the tradition in the State has been to revise the pay after
every five years, the D.A. sanctioned as on 1.7.2008 was subsumed in the
Revised Pay Scale and the new scale would come into effect from 1.7.2008.
 58

05.19. The new Master Scale which we recommend for adoption from
1.7.2008 is as follows:

6700-200-7300-220-7960-240-8680-260-9460-280-10300-300-11200-330-
12190-360-13270-390-14440-420-15700-450-17050-490-18520-530-20110-
570-21820-610-23650-650-25600-700-27700-750-29950-800-32350-850-
34900-900-37600-970-40510-1040-43630-1110-46960-1200-51760-1300
55660(80)

05.20. A comparative statement giving the existing Master Scale and

the corresponding segments in the revised Master Scale and the span of each
of these scales is given in the following Table.

Grade Existing Scales Grade Revised Scale

Master 3850-100-4150-110-4480-115- 6700-200-7300-220-7960-240-

Scale 4825-125-5200-135-5605-145- 8680-260-9460-280-10300-300-
6040-155-6505-170-7015-185- 11200-330-12190-360-13270-
7570-200-8170-215-8815-235- 390-14440-420-15700-450-
9520-255-10285-280-11125- 17050-490-18520-530-20110-
315-12700-330-13030-360- 570-21820-610-23650-650-
13750-425-15025-475-16925- 25600-700-27700-750-29950-
550-19675-625-22800-700- 800-32350-850-34900-900-
27000-750-30000-765-30765 37600-970-40510-1040-43630-
(79) 1110-46960-1200-51760-1300
55660(80)

I 3850-100-4150-110-4480-115- I 6700-200-7300-220-7960-240-
4825-125-5200-135-5605-145- 8680-260-9460-280-10300-300-
6040-155-6505-170-7015-185- 11200-330-12190-360-13270-
7570-200-8170-215-8600 (33) 390-14440-420-15700-450-
17050-490-18520-530-20110-
(40)

II 3950-100-4150-110-4480-115- II 6900-200-7300-220-7960-240-
4825-125-5200-135-5605-145- 8680-260-9460-280-10300-300-
6040-155-6505-170-7015-185- 11200-330-12190-360-13270-
7570-200-8170-215-8815 (33) 390-14440-420-15700-450-
17050-490-18520-530-20110-
570-20680(40)

III 4050-100-4150-110-4480-115- III 7100-200-7300-220-7960-240-

4825-125-5200-135-5605-145- 8680-260-9460-280-10300-300-
6040-155-6505-170-7015-185- 11200-330-12190-360-13270-
7570-200-8170-215-8815-235- 390-14440-420-15700-450-
9050 (33) 17050-490-18520-530-20110-
570-21250 (40)
 59

Grade Existing Scales Grade Revised Scale

IV 4260-110-4480-115-4825-125- IV 7520-220-7960-240-8680-260-
5200-135-5605-145-6040-155- 9460-280-10300-300-11200-
6505-170-7015-185-7570-200- 330-12190-360-13270-390-
8170-215-8815-235-9520 (33) 14440-420-15700-450- 17050-
490-18520-530-20110-570-
21820-610-22430 (40)

V 4370-110-4480-115-4825-125- V 7740-220-7960-240-8680-260-
5200-135-5605-145-6040-155- 9460-280-10300-300-11200-
6505-170-7015-185-7570-200- 330-12190-360-13270-390-
8170-215-8815-235-9520-255- 14440-420-15700-450-17050-
9775 (33) 490-18520-530-20110-570-
21820-610-23040 (40)

VI 4595-115-4825-125-5200-135- VI 7960-240-8680-260-9460-280-
5605-145-6040-155-6505-170- 10300-300-11200-330-12190-
7015-185-7570-200-8170-215- 360-13270-390-14440-420-
8815-235-9520-255-10285 15700-450-17050-490-18520-
(33) 530-20110-570-21820-610-
23650(40)

VII 4825-125-5200-135-5605-145- VII 8440-240-8680-260-9460-280-

6040-155-6505-170-7015-185- 10300-300-11200-330-12190-
7570-200-8170-215-8815-235- 360-13270-390-14440-420-
9520-255-10285-280-10845 15700-450-17050-490-18520-
(33) 530-20110-570-21820-610-
23650-650-24950(40)

VIII 5200-135-5605-145-6040-155- VIII 9200-260-9460-280-10300-300-

6505-170-7015-185-7570-200- 11200-330-12190-360-13270-
8170-215-8815-235-9520-255- 390-14440-420-15700-450-
10285-280-11125-315-11755 17050-490-18520-530-20110-
(33) 570-21820-610-23650-650-
25600-700-27000 (40)

IX 5470-135-5605-145-6040-155- IX 9460-280-10300-300-11200-
6505-170-7015-185-7570-200- 330-12190-360-13270-390-
8170-215-8815-235-9520-255- 14440-420-15700-450-17050-
10285-280-11125-315-12385 490-18520-530-20110-570-
(33) 21820-610-23650-650-25600-
700-27700(40)
 60

Grade Existing Scales Grade Revised Scale

X 5750-145-6040-155-6505-170- X 10020-280-10300-300-11200-
7015-185-7570-200-8170-215- 330-12190-360-13270-390-
8815-235-9520-255-10285- 14440-420-15700-450-17050-
280-11125-315-12700-330- 490-18520-530-20110-570-
13030 (33) 21820-610-23650-650-25600-
700-27700-750-29200 (40)

XI 6195-155-6505-170-7015-185- XI 10900-300-11200-330-12190-
7570-200-8170-215-8815-235- 360-13270-390-14440-420-
9520-255-10285-280-11125- 15700-450-17050-490-18520-
315-12700-330-13030-360- 530-20110-570-21820-610-
13750-425-14175 (33) 23650-650-25600-700-27700-
750-29950-800-31550 (40)

XII 6505-145-6040-155-6505-170- XII 11530-300-11200-330-12190-

7015-185-7570-200-8170-215- 360-13270-390-14440-420-
8815-235-9520-255-10285- 15700-450-17050-490-18520-
280-11125-315-12010-315- 530-20110-570-21820-610-
12700-330-13030-360-13750- 23650-650-25600-700-27700-
425-15025 (33) 750-29950-800-32350-850-
33200 (40)

XIII 6675-170-7015-185-7570-200- XIII 11860-330-12190-360-13270-

8170-215-8815-235-9520-255- 390-14440-420-15700-450-
10285-280-11125-315-12010- 17050-490-18520-530-20110-
315-12700-330-13030-360- 570-21820-610-23650-650-
13750-425-15025-475-15500 25600-700-27700-750-29950-
(33) 800-32350-850-34050 (40)

XIV 7200-185-7570-200-8170-215- XIV 12550-360-13270-390-14440-

8815-235-9520-255-10285- 420-15700-450-17050-490-
280-11125-315-12010-315- 18520-530-20110-570-21820-
12700-330-13030-360-13750- 610-23650-650-25600-700-
425-15025-475-16925 (33) 27700-750-29950-800-32350-
850-34900-900-35800 (40)

XV 7385-185-7570-200-8170-215- XV 12910-360-13270-390-14440-
8815-235-9520-255-10285- 420-15700-450-17050-490-
280-11125-315-12010-315- 18520-530-20110-570-21820-
12700-330-13030-360-13750- 610-23650-650-25600-700-
425-15025-475-16925-550- 27700-750-29950-800-32350-
17475(33) 850-34900-900-36700 (40)
 61

Grade Existing Scales Grade Revised Scale

XVI 7770-200-8170-215-8815-235- XVI 13660-390-14440-420-15700-
9520-255-10285-280-11125- 450-17050-490-18520-530-
315-12010-315-12700-330- 20110-570-21820-610-23650-
13030-360-13750-425-15025- 650-25600-700-27700-750-
475-16925-550-18575 (33) 29950-800-32350-850-34900-
900-37600-970-38570(40)

XVII 8385-215-8815-235-9520-255- XVII 14860-420-15700-450-17050-

10285-280-11125-315-12010- 490-18520-530-20110-570-
315-12700-330-13030-360- 21820-610-23650-650-25600-
13750-425-15025-475-16925- 700-27700-750-29950-800-
550-19125 (31) 32350-850-34900-900-37600-
970-39540 (38)

XVIII 8815-235-9520-255-10285- XVIII 15280-420-15700-450-17050-

280-11125-315-12010-315- 490-18520-530-20110-570-
12700-330-13030-360-13750- 21820-610-23650-650-25600-
425-15025-475-16925-550- 700-27700-750-29950-800-
19675-625-20300 (31) 32350-850-34900-900-37600-
970-40510 (38)

XIX 9285-235-9520-255-10285- XIX 16150-450-17050-490-18520-

280-11125-315-12010-315- 530-20110-570-21820-610-
12700-330-13030-360-13750- 23650-650-25600-700-27700-
425-15025-475-16925-550- 750-29950-800-32350-850-
19675-625-21550(31) 34900-900-37600-970-40510-
1040-42590 (38)

XX 10285-280-11125-315-12010- XX 18030-490-18520-530-20110-
315-12700-330-13030-360- 570-21820-610-23650-650-
13750-425-15025-475-16925- 25600-700-27700-750-29950-
550-19675-625-22800-700- 800-32350-850-34900-900-
24200 (31) 37600-970-40510-1040-43630
(35)

XXI 10845-280-11125-315-12010- XXI 19050-530-20110-570-21820-

315-12700-330-13030-360- 610-23650-650-25600-700-
13750-425-15025-475-16925- 27700-750-29950-800-32350-
550-19675-625-22800-700- 850-34900-900-37600-970-
25600 (31) 40510-1040-43630-1110-45850
(35)

XXII 11755-315-12700-330-13030- XXII 20680-570-21820-610-23650-

360-13750-425-15025-475- 650-25600-700-27700-750-
16925-550-19675-625-22800- 29950-800-32350-850-34900-
700-26300 (29) 900-37600-970-40510-1040-
43630-1110-46960(33)
 62

Grade Existing Scales Grade Revised Scale

XXIII 12385-315-12700-330-13030- XXIII 21820-610-23650-650-25600-
360-13750-425-15025-475- 700-27700-750-29950-800-
16925-550-19675-625-22800- 32350-850-34900-900-37600-
700-27000-750-27750 (29) 970-40510-1040-43630-1110-
46960--1200-48160(32 )

XXIV 13390-360-13750-425-15025- XXIV 23650-650-25600-700-27700-

475-16925-550-19675-625- 750-29950-800-32350-850-
22800-700-27000-750-28500 34900-900-37600-970-40510-
(27) 1040-43630-1110-46960-1200-
49360 (30 )

XXV 14600-425-15025-475-16925- XXV 25600-700-27700-750-29950-

550-19675-625-22800-700- 800-32350-850-34900-900-
27000-750-29250 (25) 37600-970-40510-1040-43630-
1110-46960--1200-50560 (28)

XXVI 15500-475-16925-550-19675- XXVI 27000-700-27700-750-29950-

625-22800-700-27000-750- 800-32350-850-34900-900-
30000 (24) 37600-970-40510-1040-43630-
1110-46960--1200-51760(27)

XXVII 16925-550-19675-625-22800- XXVII 29200-750-29950-800-32350-

700-27000-750-30000-765- 850-34900-900-37600-970-
30765 (22) 40510-1040-43630-1110-
46960-1200-51760-1300-53060
(25)

XXVIII 18025-550-19675-625-22800- XXVIII 31550-800-32350-850-34900-

700-27000-750-30000-765- 900-37600-970-40510-1040-
30765 (20) 43630-1110-46960-1200-
51760-1300-53060 (22)

XXIX 19675-625-22800-700-27000- XXIX 34050-850-34900-900-37600-

750-30000-765-30765 (17) 970-40510-1040-43630-1110-
46960-1200-51760-1300-
54360(20)

XXX 21550-625-22800-700-27000- XXX 37600-970-40510-1040-43630-

750-30000-765-30765 (14) 1110-46960--1200-51760-1300-
54360 (16)
 63

Grade Existing Scales Grade Revised Scale

XXXI 23500-700-27000-750-30000- XXXI 41550-1040-43630-1110-
765-30765 (11) 46960-1200-51760-1300-55660
(13)

XXXII 25600-700-27000-750-30000- XXXII 44740-1110-46960-1200-

765-30765 (8) 51760-1300-55660 (10)

05.21. In the proposed scale the highest is to be assigned to Law

Secretary besides Secretaries of the Legislature, Additional Secretaries to
Government and some Heads of Departments. If the Law Secretary is from
Judicial Department, as is the current practice, he will continue to remain in
the scale recommended by the National Judicial Commission and adopted by
the State.
 64

CHAPTER VI
Principles of Fitment

06.01. An important feature of revision of Pay Scales is the fitment

formula for determining the pay of existing employees in the revised Pay
Scales. As in the case of previous revisions, a number of suggestions have
been made by various Associations on how this shift should take place from
the present scales to the new scales. We are aware that the financial outgo
will largely depend upon the formula that we suggest for fitment.

06.02. The Associations had advanced various arguments in favour of

their suggestions regarding pay fixation. While some suggested a point to
point fixation, others pleaded for percentage increase with weightage given
through additional increments for the period of stay in the existing scales
subject, however, to some restrictions. We find that a vast majority are in
favour of percentage increase as it would spread the benefit evenly. The
previous State Commissions and the Central Pay Commissions found the
percentage increase as the most equitable way of conferring financial benefit
on the existing employees. We agree with this approach.

06.03. The JAC in its memorandum requested that fitment at the rate of
56% should be extended to neutralize the effect of inflation on the employees.
The argument advanced by the JAC in support of their demand is that there
has been a phenomenal increase in inflation between June 2008 and October
2008 (11.83%) and that the difference of 7.17% between the present rate of
inflation and 4.66% which was the average rate of inflation for the year 2007-
08 should be provided as fitment as per the following formula :

7.17 / 4.66 x 42.390 = 65.22%

06.04. The JAC argued that since the Government is announcing

measures to contain inflation and are confident of arresting it at 10%, the
formula for fitment could be moderated by taking 10.72% which is the
inflation for week ending 06.11.2008 and reworking as per the above formula,
(6.06 / 4.66 x 42.39). The revised fitment then works out to 55.12% or 56%.
The 6th Central Pay Commission’s average fitment benefit is also around
52.5%.

06.05. I have tried to ascertain the logic behind these computations and
failed to get a reasonable explanation.

06.06. Inflation is measured based on the movement of Wholesale

Price Index and it is calculated taking into account a basket of goods and
 65

services. It is often the complaint of the general public that the wholesale
price index does not reflect the actual cost paid by the consumer at the market
place and a more appropriate way of measuring the effect of prices on the
living standards of the public is through monitoring the movement of
Consumer Price Index. The Consumer Price Index has a set of goods and
services of common consumption and reflects the market prices more
accurately than the Wholesale Price Index. The D.A. is, therefore, sanctioned
based on the movements in the Consumer Price Index. Mixing it with
inflation for purposes of determining employee compensations is not only
incorrect but also misleading. Further the base for inflation taken for
calculation by the JAC is for the period June 2008 to Oct. 2008, a period
which goes beyond 1.7.08 which the JAC has separately pleaded as the date
from which the present PRC recommendations should come into effect. This
amounts to taking developments beyond the cut off date into reckoning by
PRC which falls outside its jurisdiction. Moreover these increases in prices
beyond 1.7.2008 are captured separately through the movements in the
Consumer Price Index and DA is sanctioned by the State as per the formula
devised and implemented by the Government of India for its employees. The
State Government have already sanctioned two doses of DA as on 1.1.2009
and 1.7.2009 of 9.42% and 8.478% respectively. The employees would
continue to get the benefit of DA increases post merger of DA from 1.7.2008
in the revised pay scales.

06.07. For the reasons mentioned above the Commission is of the

view that there is no justification for considering the request for taking
into account 56% for purposes of fitment.

06.08. The other point mentioned in the memorandum of the JAC

is about the fitment benefit derived by the employees of the Central
Government as a result of the recommendations of the 6th Pay Revision
Commission. They pointed out that the average benefit spread across the
entire spectrum of the Central Government employees is around
52.515% over their basic pay of the 1996 pay scales. This fixation benefit
extended by the Central Government will have to be viewed in the context of
the 10 year lag between two Pay Commissions compared to pay revisions
after every 5/6 years in the State. While discussing the approach to Pay
Revision we had separately established how the State Government employees
had been drawing higher level of emoluments as pay plus DA compared to
their counterparts in the Central Government in most of the years.

06.09. It would be worthwhile recalling that in 1986 both Centre and

State had pay revision with DA as on 1.1.1986 merged into the basic pay. At
that time the pay of the lowest paid employee in both Government of India
and the State was almost at par. While it was Rs.740/- p.m. in the State, it
was Rs.750/- p.m. in Government of India. Since then the Central
 66

Government employees had two Pay Revisions in 1996 and 2006 while the
State employees had three pay revisions in 1992, 1998 and 2003 with another
Pay Revision due from 1.7.2008. The 1993 Pay Commission had brought
about a major shift in determination of Pay Scales with the introduction of
Master Scales. The pay fixation benefit that was extended in the Pay
Revisions subsequent to 1986 are as follows:

State Centre
1992 10% --
1996 -- 40% + 10% I.R. + Rs.100 I.R.
1998 25% @ --
2003 16% --
2006 -- 52% (average)

@ It actually works out to 46% as this 25% fitment is on a pay which had
been arrived at by PRC in 1992 after merging DA of 83% that accrued after
1.1.86.

06.10. The combined effect of the increases effected in 1992 and

1998 above would straightaway make the increase in fitment 56% leaving
aside the increases arising out of the switch from stand alone scales to
Master Scale. The State employees having got the benefit of increase from
1.7.92 after the revision in 1986 had the benefit of an earlier rise in pay than
their Central Government counterparts (3 ½ years) which would also offset
the loss, if any, suffered due to the implementation of the second revision at a
later date i.e., from 1.7.98 (1 ½ years after the Central revision). This is
amply demonstrated in the information given at Tables I (a) (b) & (c) in the
Chapter on Approach to Pay Revision which traces the growth in the pay of
similar category of employees of State and Central Government from 1.1.86.

06.11. The above discussion brings out in clear and unambiguous

terms how the fitment formula of 1992 and 1998 had the effect of not only
neutralizing the fitment given by the Central Pay Commission of 1996
but also conferred a larger benefit on the State employees.

06.12. The JAC had pointed out that the average fitment as a
consequence of the implementation of the recommendations of the 6th
Central pay Commission was 52%.

06.13. Taking into account the fitment of 16% given on 1.7.2003, the
present Commission has decided to work out a fitment formula that does not
leave the State employees far behind the Central employees. In the approach
to the pay revision we have explained how we have tried to fix a minimum
pay which is on par with the lowest paid employee in States which adopted
Central Pay Scales. We had to necessarily draw comparison with those States
 67

as the Government of India, based on the 6th Pay Commission’s

recommendations abolished Category ‘D’ which is equivalent to our Class IV.
The PRC had, however, given equivalent pay of Category ‘D’ employee in
the revised pay scales for initial fitment of the Central Government employees
in that category and later upgradation to Category ‘C’. It is that scale which
the States that follow the Central Pay Scales have adopted for their Class IV
employees. We also adopted that scale for comparison and established
separately in the Report how what we recommended as the minimum pay
compares favourably with the scales recommended by the 6th Central Pay
Commission for the lowest paid employees.

06.14. We have also explained in our approach that it is unrealistic to

expect the State to compete with the Centre in terms of pay and other facilities
for their employees in view of the limitation of resources as also the
differences in the nature of the functions performed and the conditions under
which they have to be performed. The endeavour of the Commission is,
however, to provide as much benefit to the State employees as is possible
within the constraints of the State resources and the competing demands on
these limited resources.

06.15. Keeping in view the resource availability and the reasonable

requirements of the employees and the pensioners, the Commission
recommends a fitment benefit of 27%. The Commission recommends that the
fitment in the revised scale may be made in the following manner:

(1) D.A. admissible as on 1.7.2008 may be added to the basic pay

drawn by the employee;

(2) 27% of the basic pay may be added to the total of basic pay + D.A.
arrived at (1) above;

(3) The pay of the employee should be fixed in the relevant revised
scale at the stage next above the amount arrived at as at (2) above;

(4) If an employee’s pay when fixed as above falls short of the

minimum in the revised pay scale, it shall be fixed at the minimum
of the scale;

(5) If the amount so fixed exceeds the maximum, the excess shall be
treated as personal pay and it should be absorbed in future pay
increases or in the stagnation increments sanctioned.

06.16. The combined effect of the fitment of 16% that the State
employees got from 1.7.2003 coupled with the fitment of 27% suggested
by us would result in a cumulative benefit of 48% as fitment for the State
 68

employees. This compares reasonably with the fitment given by the

Central PRC to its employees as the average 52% benefit is given on 1996
pay scales while the State had given the first instalment of rise in 2003
and the second instalment now in 2008.

06.17. We recommend that the revised pay scales should come into
force from 1.7.2008. As regards giving monetary benefit we deem it
appropriate to leave the date from which it would come into effect to the
Government keeping in view its resource position and the demands on
those resources.

06.18. Majority of the Associations requested for restoring the benefit

of advancement of increment of the senior to that of the junior, in case where
the junior was drawing pay in lesser stage in the existing scale but the pay of
the Senior and Junior got fixed at the same stage in the Revised pay scales
and the date of increment of the junior happens to fall earlier than that of the
senior. The Revised Pay Scales Rules, 1974, 1978, 1986 and 1993 provided
for advancement of the increment of the senior in such contingencies. This
provision was not found in the Rules issued for implementing the
recommendations of 1999 and 2005 pay revision. With the introduction of
Master Scales instances of the nature referred to would be few. The Rules
issued by the Government of India adopting 6th Pay Revision Commission’s
Report makes a provision for advancement of increment in such cases. We
suggest that a similar facility may be provided. We, therefore, recommend
provision being made for advancement of the date of increment of the
senior to that of the junior subject to the satisfaction of the conditions
indicated earlier.

06.19. Before we conclude we would like to refer to an issue which the

Associations placed before us where the junior is drawing higher pay than the
senior as a result of a shift in the Automatic Advancement Scheme
recommended by the 2005 Pay Commission. The various Associations
expressed serious reservations about the orders issued by the Finance
Department vide Govt. Memo. No. 2620/A/65/FRII/07, dated 20.2.07
negativing their demand for issue of orders to step up the pay of the senior to
that of the junior in case the junior happens to draw higher pay. We have
dealt with this issue while making recommendations relating to Automatic
Advancement Scheme. While our suggestions would take care of any
aberrations that may arise in future the issue that requires to be
addressed is how to deal with the present situation where the junior is
drawing more pay and its consequences on the senior when he migrates
from the present scale to the new scale.

06.20. We are aware that instances of junior drawing more pay than the
senior was not a new phenomenon and the Finance Department had, on earlier
 69

occasions, issued Circulars to step up the pay of the senior to bring it on par
with that of the junior. The Orders issued in Govt. Memo. No.
2620/A/FRII/07, dated 20.2.07 are a departure from this well established
practice. We have no intention of reopening this issue so far as it relates to
the period covered by the recommendations of the previous Commission. We
feel that this phenomenon would continue even when the employees move
into the new pay scales recommended by us if the problem is not addressed at
the time of migration into the new scale. We are convinced that the senior
should be on par or above his junior so far as pay is concerned and where this
principle gets affected the senior’s pay should be protected subject to the
normal conditions which the Finance Department had traditionally laid down
when such protection was extended. There are normally very few
circumstances when such aberration may creep in and such instances are
likely to be more when there are changes effected in the principles of fixation,
revision of pay scales or alterations made in principles governing Automatic
Advancement Scheme etc.

06.21. We recommend that in respect of all those seniors who, as

on 1.7.2008 are drawing less pay than their juniors, their pay should be
stepped up and brought on par with their juniors and only then their pay
should be fixed in the revised pay scales. This exercise should, however, be
limited only to those cases which are covered by the conditions laid down in
Para 2 of G.O.Ms.No. 297 Fin. & Plg. (F.W. PRC.I) Department dated
25.10.83 as subsequently reiterated in G.O.(P) No. 75 Fin. & Plg. (F.W.
PC.II) Dept., dated 22.2.94 and G.O. (P) No. 223 Fin. & Plg. (FW.PC II)
Dept., dated 10.09.96. Such an exercise would ensure that this aberration
does not automatically get transmitted from the present scale to the new
scale so far as the affected employees are concerned.

06.22. As regards the future contingencies arising out of the

implementation of the recommendations relating to pay scales made by
this Commission where the junior draws higher pay than the senior we
suggest that Finance Department should cover such contingencies
through the Rules whereby the senior’s pay is stepped up to be on par
with that of the junior subject to the satisfaction of the conditions
mentioned in the earlier Circulars of the Finance Department.
 70

CHAPTER – VII
Major Allowances

07.01. There is a host of allowances today which are paid to different

categories of Government employees for various reasons. Some of them can
be categorized as major allowances as they are claimed by most of the
Government servants and are also intimately connected to the quantum of
pay. Some of them are in the nature of compensatory allowances given as
compensation for price rise, higher cost of living due to higher rents and
increased expenses due to stay in cities and major towns. These allowances
are paid on a monthly basis along with the salary. These are Dearness
Allowance, H.R.A., Additional H.R.A., in lieu of rent free quarters and
City Compensatory Allowance. Other than these allowances there are
nearly 46 allowances which are paid to different categories and at varying
rates. In this chapter we propose to deal with only the four major allowances
while other allowances are dealt with in another Chapter.

Dearness Allowance:

07.02. The Dearness Allowance is a compensatory allowance to

neutralize the rise in the Cost of Living Index.

07.03. The Pay Revision Commission 1986, recommended the State

Government to follow the Central pattern of sanction of Dearness Allowance
including quantum and level of neutralization. The successive Pay Revision
Commissioners have also been recommending continuation of this practice
and the State Government accordingly, has been sanctioning Dearness
Allowance on the pattern of Government of India.

07.04. In Central Government, Dearness Allowance is being

sanctioned twice a year; on First January and First July every year. The
percentage of rise in the twelve monthly moving average of Cost of Living
Index over the Cost of Living Index to which the Revised Scales are related is
being sanctioned as Dearness Allowance. 100% neutralization is being
allowed to all the employees in pursuance of the recommendations of the
Fifth Central Pay Commission. The State Government, in pursuance of the
recommendations of the Pay Revision Commissioner, 1999 have been
allowing 100% neutralization to all employees.

07.05. The Government of India evolved their scales by merging

Dearness Allowance as on 1.1.2006, with Basic Pay. We have, as is the
practice in the State, recommended merging of Dearness Allowance in Basic
 71

Pay as on 01.07.2008. Since the Basic Pay has been worked out by us by
merging Dearness Allowance at a higher level than the Government of India,
the rate of Dearness Allowance sanctioned to the employees of the
Government of India can not be adopted directly in respect of the employees
of the State Government. For this purpose, the State Pay Revision
Commissioners have been recommending a conversion formula, to ensure that
the quantum of Dearness Allowance sanctioned is at par with what was
sanctioned by the Centre.

07.06. The Commission accordingly recommends that the Dearness

Allowance be regulated at 0.856% (536:626) for the State employees for
every one percent of Dearness Allowance sanctioned to the employees of
Government of India with effect from 01-01-2009.

House Rent Allowance:

07.07. The House Rent Allowance is sanctioned to Government

employees to meet to a certain extent, the additional burden on employees by
way of higher rents. It was first sanctioned in 1969 to Government
employees and it has been extended from time to time. In 1975 apart from the
large cities and towns a small amount was also given to those living in sub
taluk, taluk and municipal towns. By the time the PRC 1978 was constituted,
Hyderabad and four other major cities were classified into one group and the
House Rent Allowance was fixed at the rate of 15% of the basic pay subject
to a maximum of Rs.400/- per month. For employees working in medium /
small towns including district headquarters towns, the HRA was fixed at 7.5%
of the basic pay. For employees at other places an amount of Rs.5/- per month
up to a basic of Rs.250 per month and at Rs.7/- per month from Rs.251-400
was allowed. The PRC 1978 reviewed the scheme and recommended an
increase of Rs.5/- for those who are in receipt of Rs.5/- and Rs.13/- for those
who were drawing Rs.7/- per month. By 1986, the HRA was being paid at
15% in all cities with a population of above 2 lakhs i.e., Hyderabad and 9
other towns. Employees at Tirupati were also declared eligible for receipt of
Rs.15/- as a special case. In respect of other specified towns with a
population 50,000 above and below 2 lakhs, HRA was fixed at 7.5% and in
all other places it was at 4% of basic pay.

07.08. The 1986 PRC recommended increase of HRA to 20% for

places where 15% was being paid and 10% in all other places. Accordingly
orders were also issued.

07.09. Subsequently, the quantum of House Rent Allowance payable to

Government employees in certain places was revised from 1st July 1986. In 14
District headquarters, the HRA was revised to 12.5% of basic pay and for
other places it was fixed at 10% of basic pay. The 1993 PRC, who had
 72

evolved DA merged pay scales by merging 83% of the D.A., recommended

payment of HRA at 16% in 12 major towns including the twin cities, 10% in
respect of 13 district headquarters and for the remaining places 8% of basic
pay. All this was subject to a ceiling of Rs.1,000/- p.m. Government
subsequently revised the percentage rates and also the ceiling limit w.e.f.
1.1.1994.

07.10. The criteria for assigning HRA all along was the population of
the cities / towns. The PRC 1999 recommended 20% of basic pay for those
employees who are residing in cities / towns where the population is 2 lakhs
and above and for those employees who are residing in District Headquarters
and other municipal towns other than the above cities, the HRA was fixed at
12.5% and in respect of other places the payment of HRA was fixed at 10% of
basic pay. All of them were subject to a maximum of Rs.2,000 per month.

07.11. In G.O.Ms. No.456, Finance (PC-I) Department, dt.8.12.2005

Kamareddy and Tandur were also declared eligible for HRA at 12.5%. The
PRC 2005 continued the pattern adopted by the PRC 1999 but had
recommended enhancing the ceiling to Rs.3,000/- which was raised later to
Rs.4,000/- per month by the O.M.C.

07.12. Subsequently, based on the declaration of the Hyderabad city as

Greater Hyderabad Municipal Corporation and in consequence of the
population having crossed more than 50 lakhs, the Government of India
classified Hyderabad as A1 City. Government of Andhra Pradesh have also
declared Hyderabad as A1 City and the employees working in Greater
Hyderabad Municipal Corporation were made eligible for drawal of HRA at
30% of basic pay, subject to maximum of Rs.6,000/- vide G.O. (P) No.10,
Finance (PC-I) Department, dt.17.1.2008. These rates of HRA are also
extended to the places located within the periphery of 8 kms. The final
details of Corporations, cities and towns which have been classified into four
grades and the rates of HRA admissible to the employees thereon are as
follows:

Criteria Rate of HRA

Hyderabad and Secunderabad classified 30% of Basic Pay subject to
as A1 City. a ceiling of Rs.6,000/- p.m.

Visakhapatnam, Gajuwaka, 20% of Basic Pay

Vijayawada, Warangal, Guntur, subject to a ceiling of
Rajahmundry, Nellore, Kakinada, Rs.4000/- p.m.
Kurnool, Tirupati, Nizamabad,
Eluru, Kadapa, Ananthapur,
Karimnagar, Ramagundam.
 73

Criteria Rate of HRA

Srikakulam, Vijayanagaram, 12.5% of basic pay, subject
Machilipatnam, Ongole, Chittoor, to a maximum ceiling of
Ananthapur, Adilabad, Kareemnagar, Rs.4000/- pm
Mahaboobnagar, Khammam,
Sangareddy, Nalgonda.

(With effect from 1-1-1992 (These

towns were sanctioned originally from
01-09-1994 based on High Power
Committee’s recommendations.
Subsequently basing on the High Court
Judgment date of effect altered to 1-1-
1992).

Anakapalli, Tadepalligudem,
Tanuku, Palakollu, Narsapuram,
Gudivada, Tenali, Narasaraopeta,
Chilakaluripeta, Bapatla,
Mangalgiri, Ponnur, Chirala, Kavali,
Guduru, Madanapalli, Srikalahasti,
Proddutur, Rayachoty, Guntakal,
Hindupur, Dharmavaram, Tadipatri,
Kadiri, Adoni, Nandyala,
Yemmiganuru, Siddipet, Bodhan,
Bellampalli, Mandamarri, Nirmal,
Kagaznagar, Mahceriyal, Jagityal,
Sirishilla, Kothagudem, Palavancha,
Miryalaguda, Suryapet,
Bheemavaram, Kamareddy and
Tandur.
All other places 10% of basic pay subject to
a ceiling of Rs.4000/-

07.13. Several associations including Joint Action Committee of the

employees, Teachers and Workers have requested for payment of HRA at
30% of basic pay without any ceiling in all municipalities, villages included
in Greater Hyderabad Municipal Corporation City / HMDA. They have also
requested for HRA at 20% of basic pay without any ceiling for all District
Headquarters and places within periphery of 15 KMs. For other places HRA
at 12.5% basic pay without any ceiling has been requested. Different
associations have requested for payment of HRA at different percentage rates,
ranging from 10% to 30% of basic pay.

07.14. According to the orders issued by the Government of India

based on the recommendations of 6th Central Pay Commission, the rates of
HRA to their employees is based on the classification of the cities and towns
on population criteria. According to these orders if population is more than
 74

50 lakhs, the HRA is admissible at 30% of basic pay, 20% where population
is between 5 and 50 lakhs and at 10% if it is below 5 lakhs.

07.15. If the above criteria is followed, only the employees working in

the Greater Hyderabad Municipal Corporation will be entitled to 30% of the
basic pay and in all other places it would be 10% except in Visakhapatnam,
Vijayawada, Guntur and Warangal where the eligibility would be 20% of
basic pay. The Commission noticed that the system of classification of
cities and towns in the A.P. State is liberal and any change of
classification of cities and towns on par with classification made by
Government of India will lead to a position disadvantageous to the
employees.

07.16. The Commission, taking all factors into consideration,

recommends that the existing classification of cities and towns as also the
rates of allowance be retained for the purpose of admissibility of HRA.
The existing ceiling of Rs.6000/- be enhanced to Rs.12000/- for Greater
Hyderabad Municipal Corporation. For other places where ceiling is
Rs.4000/-, the same is recommended to be enhanced to Rs.8000/- per
month.

07.17. The Commission also recommends that the existing rules with
regard to the payment of HRA at the rates applicable to the places located
within the periphery of 8 KMs for the towns / cities concerned be continued.

Classification of City/ Town for drawal of HRA:

07.18. The Government of India sanctions House Rent Allowance

based on classification of cities and towns on decennial population basis. But
the PRC 1978 recommended the mid census population figures once in five
years may be taken into consideration so as to include any town for eligibility
to HRA if the population of such town exceeds 50000 instead of waiting for
the decennial figures. Although he has recommended to take cognigence of
mid census population figures he did not himself take into account the mid
census population figures. The PRC 1986 also did not adopt the mid census
figures of population. PRC 1993 did not favour adopting the mid census
figures as it might lead to avoidable confusion. The 1999 PRC also agreed
with the approach of PRC 1993. The PRC 2005 did not discuss the issue of
adoption of mid census figures for purposes of declaring the town / city for
drawal of HRA.

07.19. In fact, there are no mid census population figures as such but
they are only mid census estimates which are based on projections and it is
not correct to adopt the above figures for declaring a town or city for
eligibility to draw HRA at higher rate. The Commission recommends that
 75

only decennial census figures should be taken into consideration for

classification under the different categories for purposes of drawal of
HRA.

Additional HRA in lieu of Rent Free Accommodation:

07.20. Government have been declaring certain posts in several

departments which are eligible for rent free accommodation. This is because
their presence is essential for the discharge of duties not only during normal
office hours but also beyond those hours. At times the supervisory authorities
are required to stay in the hospitals, projects, institutions etc., through out the
day and night. But Government may not be in a position to provide
accommodation on the premises or in the vicinity of the institution.
Therefore, the Government officials are required to stay in a private
accommodation near their place of duty. Government had declared various
categories of employees who are entitled for rent free accommodation from
time to time. If rent free accommodation is not provided, Government have
been allowing Additional HRA to meet the additional cost.

07.21. At present the Government employees who are eligible for rent
free accommodation are in receipt of 8% of their basic pay subject to a
maximum of Rs.500/- per month with effect from 15.10.2005. These orders
were issued based on the recommendations of the PRC 2005. The list of
categories of posts eligible for Rent Free Accommodation specified in the
Manual of Special Pay and Allowances is not being updated from time to
time. The Commission is unable to get the comprehensive list of officers and
staff who are eligible for rent free accommodation as of now inspite of best
efforts. The Commission, therefore, recommends to take steps to update the
list in Manual of Special Pays and Allowances.

07.22. The Commission, recommends that in the context of increase

in the house rents in various cities and towns and in order to meet the
additional burden the existing rate of Additional HRA of 8% of basic pay
subject to a maximum of Rs.500/- be continued at 8% of the basic pay
subject to a maximum of Rs.1000/- per month.

City Compensatory Allowance:

07.23. City Compensatory Allowance is sanctioned to the employees

to meet a portion of additional cost of living in addition to the Dearness
Allowance and HRA for those employees who are residing in cities. The
rationale behind CCA is that there is an additional cost of living which is not
amenable for calculation like HRA and DA. It was first sanctioned to the
employees in Hyderabad and Secunderabad in the year 1966 and then
onwards the State Government have been following the pattern adopted by
 76

the Government of India while sanctioning CCA to the State Government

employees. In 1979, it was extended to the employees working in
Visakhapatnam and in 1993 it was extended to the employees working in
Vijayawada. The PRC 1986 recommended adoption of the 4th Central Pay
Commission rates of CCA. The PRC 1993 recommended the same increase
in the rates keeping in view the increase in the cost of living. Subsequently,
the allowance was further extended to the employees working in the towns of
Guntur, Rajahmundry and Warangal w.e.f. 1.9.1994. The PRC 1999
recommended sanctioning the rates of CCA as sanctioned by the Government
of India based on the recommendations of the 5th Central Pay Revision. The
PRC 2005 before whom several associations demanded linking the CCA to
population and also to fix it as a percentage of salary without any upper limit
has observed that the PRCs and Central Pay Commissions did not favour the
linking of CCA with population and also did not agree for its sanction as
percentage of salary without any limit.

07.24. The PRC 2005 recommended various rates of CCA for the
employees working in twin cities, Visakhapatnam and Vijayawada, Guntur,
Rajahmundry,Warangal and other Municipal Corporations. The One Man
Committee 2008 has recommended revised rates of CCA for those employees
who are working in the Greater Hyderabad Municipal Corporation.

07.25. Thus the existing position of CCA to the employees working in

various Municipal Corporations is as indicated below.
(in Rupees)
Pay Range Greater Greater Other
Hyderabad Visakhapatnam Municipal
Municipal Municipal Corporations
Corporation Corporation /
Vijayawada
Below Rs.4825 100 60 50
Rs.4825 to Rs.7769 150 80 60
Rs.7770 to 200 125 70
Rs.10564
Rs.10565 and 300 200 80
above

07.26. The Joint Action Committee of Employees, Teachers and

Workers and other various associations have requested for sanction of
Transport Allowance in lieu of CCA, which is existing in Central
Government. The Telangana Government Drivers Centre Association has
requested for 5% basic pay as CCA to those employees working in cities and
3% of the basic pay to those employees working in towns and district
headquarters. The Employees Coordination Committee, Udyogakranti has
requested for sanction of Transport Allowance in lieu of CCA.
 77

07.27. The Sixth Pay Commission recommended abolition of CCA on

the ground that their recommendations relating to HRA and Transport
Allowance addresses the problem faced by employees in cities and large
towns. We have elsewhere in this report discussed the rationale in not
recommending the transport allowance. As regards, payment of CCA as a
percentage of basic pay this was not followed by Government of India and
also by State Government. Therefore the Commission does not see any reason
to sanction CCA at percentage rates.

07.28. C.C.A. is admissible to employees who are working in twin

cities (i.e.) Greater Hyderabad Municipal Corporation, Greater Municipal
Corporation of Visakhapatnam, Vijayawada and in 13 Municipal
Corporations at different rates.

07.29. We believe that CCA should be continued with enhanced

rates. The Commission recommends that the existing rate of CCA be
raised by 100% for those in the 1st and 2nd pay ranges and around 75%
for others as indicated below.

The following table gives the revised rates for various pay ranges
(in Rupees)
Greater Other
Greater
Visakhapatnam Municipal
Hyderabad
Pay Range Municipal Corporations
Municipal
Corporation and
Corporation
Vijayawada
Pay Up to Rs. 8200/- 200 120 100
Pay above Rs.8200/-
300 160 120
and up to Rs.13270/-
Pay above Rs.13270/-
350 220 130
and up to Rs.18030/-
Pay above Rs.18030/- 525 350 140
 78

Index to Special pays

Page No.

1. Special Pays for Peshi Staff in Peshis of CM, 82

Ministers, Chief Secretary and Secretaries.

2. Special Pay in Vigilance and Enforcement 84

Department.

3. Special Pay in Intelligence Department. 86

4. Special Pay in Anti Corruption Bureau. 88

5. Special pay in Farms run by Agriculture, Animal 90

Husbandry, Fisheries, Horticulture & Sericulture
Departments.

6. Special Pays to the Typists and Stenographers. 91

7. Special Pays to Teachers in Schools for the 93

Handicapped.

8. Special Pays to Drivers/ Attenders driving vehicles. 94

9. Special Pay for Section Officers and others. 95

10. Special Pays for other categories in different 96

Departments.

11. Special Pay for Training Institutes. 114

 79

CHAPTER – VIII
Special Pays

08.01. FR 9(25) defines “Special Pay” as an addition in the nature of

the pay, to the emoluments of a post or of a Government servant, granted
inconsideration of -
a) the specially arduous nature of the duties; or
b) a specific addition to the work or responsibility;

08.02. As per ruling (8) of the Rulings under FR 9(25), the following
principles are to be followed in the matter of granting special pay.

a) Special pay should be granted only when the conditions of Rule

9(25) strictly apply. It should not be given merely for the
purpose of improving the prospects of a service or for the
purpose of serving as a substitute for or an addition to, a
selection grade pay.

b) The posts in the ordinary time-scale of service will naturally

vary in intensity and responsibility, but this is no ground
ordinarily for granting special pays to the holders of the heavier
charges. If owing to circumstances a junior officer has to hold
one of the more responsible regular charges he is thereby given
an opportunity of proving his fitness for higher posts.

c) The placing of an officer on special duty does not necessarily

mean that his work becomes specially arduous or so increased
in quantity and responsibility to justify special pay. An officer’s
posting is in the hands of Government and he has no right to
refuse a post, which Government in the cause of the public
service, allots him. This applies also to officers transferred by
agreement between two Governments from one Government to
another. A protest against a posting should be formally
admitted only on the ground of loss of pay or prospects and
even on these grounds Government is the final arbiter.

d) A comparison between the circumstances of one officer and

another or of one service and another should not be accepted
necessarily as an argument for the grant or for the enhancement
of special pay.
 80

08.03. For certain regular posts it has been found convenient not to fix
a specific rate of pay but to remunerate their holders in the form of grade pay
plus special pay. The Government of India have observed that while the main
principles set out above apply to such special pay, there are certain obvious
differences between the circumstances of such posts and the class of posts to
which frequent proposals to attach special pay arise.

08.04. The key words in the definition of Special Pay are “arduous
nature of duties” or “additionality” to the responsibilities or work. From the
definition it is clear that all the posts in a particular category do not have
duties which are arduous in nature. This is a mechanism to compensate
persons who are required to perform duties in addition to the normal duties
performed by their peer group and are required to face arduous nature of work
in a particular post.

08.05. The primary purpose of sanctioning Special Pays is to create an

inbuilt flexibility in deployment of Government personnel in various positions
of different degrees of load of work, without creating different grades or
additional posts for achieving the same result. The Special Pays, therefore,
provide the Government a mechanism through which the employees working
in certain posts of arduous nature are motivated through monetary
compensation.

08.06. The Pay Revision Commission, 1986 reviewed the existing

Special Pays and recommended the abolition of Special Pays sanctioned to
posts above the level of Assistant Directors. The subsequent commissions by
and large, continued the existing Special Pays duly modifying the quantum.

08.07. Several requests have been received from various categories of

personnel for sanctioning fresh Special Pays and also to increase the existing
rates of special pay. Most of the functions in the Government in almost all
the Departments are projected as arduous in nature or having special
circumstances that warrant sanction of Special Pay. Special pay once
sanctioned has the tendency to remain permanent. As the pay scales are
designed keeping in view the parities between various categories and several
comparable categories have been evolved over a period of time, the
employees are seeking more in the nature of special pay as the scope for
getting separate scales or upgradation of scales is getting diminished.

08.08. This Commission tried its best to review the existing special
pays. In the course of review it is noticed that in certain cases special pays
were continued in addition to a host of incentives provided for inducing
people to work in difficult areas. It is also observed that Training Incentives
are available in the form of certain percentage of basic pay to some categories
and at fixed rates of special pay to some other categories. There has been a
 81

persistent demand from the ministerial staff belonging to Intelligence, C.I.D.

and D.G.P. Office to grant them incentive on par with the staff in ACB.

08.09. This Commission also tried to rationalize the various special

pays. Yet the Commission feels that it is desirable to have a detailed
study of all the special pays and various types of allowances objectively
and decide the need for their continuance or otherwise. The Pay Revision
Commission does not have the mechanism to do that exercise and the
commission, therefore, recommends to entrust the above exercise to a
separate agency like Centre for Good Governance or any specialised
agency as recommended by PRC 2005.

08.10. The Commission also noticed that the administrative

departments are issuing orders granting various kinds of special
pays/allowances/incentives. In this process there is scope, in certain cases
of incentives/allowances/ special pays sanctioned by the administrative
departments, escaping review by PRCs. It is therefore desirable that the
Finance Department, being the nodal department for the regulation of
pay and allowances, should issue all orders granting/revising the special
pays/allowances/incentives etc. The Commission, therefore, recommends
that the administrative departments may move the proposals and after
obtaining final approvals pass them on to the Finance Department for
issue of orders. There will thus be a centralized repository in the Finance
Department which facilitates easy reference and periodical review.

08.11. We have recommended increase in rates where necessary. We

have excluded certain categories from the list and included certain new
categories. The Commission did not find any merit in respect of the claims of
many categories of employees for special pay. Where no mention has been
made they should be deemed to have been rejected.

08.12. Our examination has revealed that under the broad heading of
special pays a number of unrelated allowances were clubbed resulting in
avoidable confusion. We have therefore reviewed the orders and removed
from this chapter (1) Anti Naxalite Squad Allowance, (2) Delhi allowance and
(3) Double Lock Key Allowance and referred to them in the chapter on
Allowances.

08.13. Our recommendations regarding special pays are contained

under the following broad headings.

1. Special Pay for Peshi Staff in Peshis of CM, Ministers, Chief

Secretary and Secretaries.
2. Special Pay in Vigilance and Enforcement Department.
 82

3. Special Pay in Intelligence Department.

4. Special Pay in Anti Corruption Bureau.
5. Special pay in Farms run by Agriculture, Animal Husbandry,
Fisheries, Horticulture & Sericulture Departments.
6. Special Pays to the Typists and Stenographers.
7. Special Pays to Teachers in Schools for the Handicapped.
8. Special Pays to Drivers/ Attenders driving vehicles.
9. Special Pay for Section Officers and others.
10. Special Pays for other categories in different Departments.
11. Special Pay for Training Institutes.

1. Special Pays to the staff working in the Peshis of Chief

Minister, Ministers, Chief Secretary and Secretaries to Govt.
etc.:
08.14. The existing Special Pays admissible to the staff working in the
Peshis of Chief Minister, Ministers, Chief Secretary & Other Secretaries are
recommended to be increased as shown against each. In the case of Private
Secretaries to the Chairman and Members of A.P. Public Service
Commission, Private Secretary to the State Election Commissioner, Personal
Secretaries / Personal Assistants to Chief Information Officer, & Information
Officers and P.S/P.A./Jamedar working in the Peshis of Presiding & Political
Officers of Legislative Assembly & Legislative Council Special Pays are
recommended now.
Existing Recommended
Sl.
Category Amount Amount Remarks
No.
Rs. Rs.
1. Private Secretary in C.M’s 350/- 400/- p.m.
Office, Ministers & C.S’s Office p.m.
2. Personal Assistant in C.M’s 325/- 375/- p.m.
office, Ministers Office & C.S’s p.m.
Office
3. Private Secretary to Spl.C.S./ 150/- 200/- p.m.
Principal Secretary/Secretary/ p.m.
Special Secretary
4. Junior Steno/Senior Steno/SC 150/- 200/- p.m.
Steno working in the peshis of p.m.
CM/ Ministers/ C.S/ Spl. C.S./
Principal. Secretary/ Secretary/
Special Secretary to Government.
(for one post only in each Peshi)
5. Record Asst./Jamedar working in 150/- 200/- p.m.
peshis of CM/ Ministers/ C.S/ p.m.
Spl.C.S./ Principal Secretary /
Secretary / Special Secretary/
Additional Secretary to Govt.
 83

Existing Recommended
Sl.
Category Amount Amount Remarks
No.
Rs. Rs.
6. Office Sub-ordinate working in 125/- 175/- p.m.
the Peshis of CM/Ministers/ C.S/ p.m.
Spl.C.S./Principal Secretary/
Secretary/Special Secretary/
Additional Secretary to Govt.
7. Office Sub-ordinate working in
the Peshis of Honourable Lok 125/-
175/- p.m.
Ayukta & Upa Lok Ayukta and p.m.
Registrar
8. Office Sub-ordinate working in
the Peshis of Commissioner & 125/-
175/- p.m.
Additional Commissioner of p.m.
A.P.Bhavan, New Delhi.
9. P.S. to Governor 350/-
400/- p.m.
p.m.
10. P.A. to Governor 325/-
375/- p.m.
p.m.
11. Private Secretary/ S.C. Steno 150/- 200/- p.m.
attached to Chief Commissioner, p.m.
Land Administration (w.e.f.
10-8-06)
12. P.S./ S.C. Steno attached to 150/-p.m.
Secretary to Chief Commissioner, (w.e.f. 200/- p.m.
Land Administration 10-8-06)
13. Special Category Stenographer
attached to Special Commissioner
150/-p.m.
and Principal Secretary to
(w.e.f. 200/- p.m.
Government of the office of the
27-9-08)
Chief Commissioner of Land
Administration.
14. Private Secretaries to the On par with
Chairman and Members of A.P. --- 400/- p.m. Private
Public Service Commission Secretary to
15. Private Secretary to the State Chief
--- 400/- p.m.
Election Commissioner Secretary
16. Personal Secretaries to On par with
Chief Information Officer Private
and Information Officers --- 400/- p.m. Secretary to
(for one post only in each Peshi) Chief
Secretary
17. Personal Assistants to On par with
Chief information Officer Private
and Information Officers --- 375/- p.m. Secretary to
(for one post only in each Peshi) Chief
Secretary
18. Private Secretary to the On par with
Presiding & Political Officers of Private
--- 400/- p.m.
Legislative Assembly & Secretary to
Legislative Council Minister
 84

Existing Recommended
Sl.
Category Amount Amount Remarks
No.
Rs. Rs.
19. Personal Assistant to the On par with
Presiding & Political Officers of Personal
--- 375/- p.m.
Legislative Assembly & Assistant to
Legislative Council Minister
20. Jamedar working in the Peshis of On par with
Presiding & Political Officers of Jamedar in
--- 200/- p.m.
Legislative Assembly & the peshi of
Legislative Council Minister

Note: The following are the Presiding and Political Officers of Legislative
Assembly & Legislative Council.

(i) Speaker of the Legislative Assembly.

(ii) Leader of the Opposition in the Legislative Assembly.
(iii) Deputy Speaker of the Legislative Assembly.
(iv) Government Chief Whip & Whips in the Legislative Assembly.
(v) Chairman of the Legislative Council.
(vi) Leader of the Opposition in the Legislative Council.
(vii) Deputy Chairman of the Legislative Council.
(viii) Government Chief Whip & Whips in the Legislative Council.

2. Special Pay, Additional HRA & Conveyance Allowance to the staff

of Vigilance & Enforcement Department
08.15. Government sanctioned special pay, Additional HRA &
Conveyance allowance to the various categories of posts in Vigilance and
Enforcement Department by equating them with the posts in Anti Corruption
Bureau (vide G.O.Ms.No.432 G.A. (V & E) Department, Dt.13-08-86).
Basing on the recommendations of PRCs, the rate of special pay to the staff of
Anti Corruption Bureau has been increased from time to time. Thus the staff
of Vigilance and Enforcement Department are drawing the special pay at the
rates as applicable in Anti Corruption Bureau.

08.16. Since the staff of Anti Corruption Bureau are allowed 30%
incentive by the Government from the year 2003, the special pay admissible
to the staff of Anti Corruption Bureau is recommended to be discontinued
elsewhere in this report.
 85

08.17. It is reported that Vigilance and Enforcement Department

meanwhile created several other categories in the department either by
upgradation or by creation of new posts. The request is for sanction of special
pay, additional HRA & Conveyance Allowance to these new posts.

08.18. The Vigilance & Enforcement Department requested to allow

special pay to all the new categories. The commission recommends the
revised rates of special pay to all the categories of posts in this
department keeping in view the existing rates of special pay for certain
categories of posts and the scales of pay of the new categories of posts for
which special pay is not admissible at present. The details of posts and the
revised rate of Special pay recommended are at Annexure.

08.19. A request has been received for the sanction of additional HRA
for the staff of Vigilance and Enforcement Department. It may be noted that
payment of additional HRA is admissible only to the specified categories of
posts where rent free accommodation is to be provided. Since the orders to
this effect were not produced we do not propose payment of additional HRA.

08.20. The further request is for sanction of conveyance allowance in

Vigilance and Enforcement Department. Conveyance Allowance is
sanctioned where TA and DA is not admissible as per rules. The Department
is therefore advised to obtain orders of the Government prescribing the nature
of conveyance to be maintained together with the jurisdiction to such of those
persons who are expected to tour several places without the eligibility of TA
and DA.
Annexure
Statement showing the rates of Special Pay recommended for the various
categories of posts belonging to Vigilance & Enforcement Department
Existing Recommended
Sl.
Category Rate Rate Remarks
No
Rs. p.m. Rs. p.m.
A. Head Office:
1. Addl. Director (Engg) - 450/-
Chief Engineer -
2. Addl. Director (Rev) - 450/-
(Addl. Commissioner C.T)
3. Deputy Secretary to Govt. - 425/-
(N.C.)
4. Deputy Commissioner (C.T) - 425/-
5. Special Grade Deputy Collector - 425/-
6. Deputy Director (T.P) - 400/-
7. Deputy Director (Engg) - 400/-
(Executive Engineer)
8. Asst. Secretary to Govt. - 400/-
9. Divisional Forest Officer - 375/-
Asst. Conservator of Forests
 86

Existing Recommended
Sl.
Category Rate Rate Remarks
No
Rs. p.m. Rs. p.m.
10. Deputy Supdt. of Police 325/- 375/-
11. Deputy Exe. Engineer 325/- 375/-
12. Commercial Tax Officer - 375/-
13. Asst. Director (Mines - 300/-
& Geology)
14. Inspector of Police 250/- 300/-
15. Asst. Audit Officer - 300/-
(State Audit)
16. Mandal Development Officer - 300/-
17. Asst. Registrar (Co.op) - 300/-
18. Dy. Mandal Revenue Officer - 200/-
19. Head Constable 100/- 150/-
20. Police Constable 65/- 100/-
B. RV&EO Units
1. Regl. Vig. & Enf. Officer 375/- 425/-
2. Deputy Supdt. of Police 325/- 375/-
3. Deputy Exe. Engineer - 375/-
4. Asst. Director (Agl) - 300/-
Agrl. Officer
5. Inspector of Police 250/- 300/-
6. Dy. Commercial Tax Officer 250/- 300/-
7. Tahsildar (Civil Supplies) 250/- 300/-
8. Asst. Geologist - 300/-
9. Asst. Exe. Engineer - 300/-
10. Mandal Development Officer - 300/-
11. Forest Range Officer 250/- 300/-
12. Asst. Registrar (Co-op). - 250/-
13. Sub Inspector of Police 200/- 250/-
14. Head Constable 100/- 150/-
15. Police Constable 65/- 100/-

3. Special Pay to the staff of Intelligence Department

08.21. The Intelligence Department consists of the following four

wings
(1) General Intelligence,
(2) Security Wing,
(3) Special Intelligence Branch, and
(4) Counter Intelligence Cell

08.22. The staff working in General Intelligence and Security wing are
eligible for special pay at the rates specified in G.O.Ms.No.264 Fin (TA)
Department dated:15-10-2005 based on the recommendations of PRC 2005.
The staff belonging to Special Intelligence Branch are eligible for Special
Allowance, Ration Allowance and Special Uniform grant on par with the staff
belonging to “Grey hounds” wing. The recommendations relating to the
 87

continuance of the special allowance to the staff of the Special Intelligence

Branch and Counter Intelligence Cell Staff are made separately in this report.
The recommendations relating to the continuance of the Ration Allowance
and special uniform grant to the Special Intelligence Branch staff are also
included in the recommendations relating to “Ration Allowance” and
“Uniform Allowance / Uniform Maintenance Allowance” made in this report
separately.

08.23. The Intelligence Department has requested for “Intelligence

Allowance” to all the staff working in Intelligence and security wings at 30%
of basic pay + DA, duly disallowing the special pay being allowed at present
to some of the staff in view of the nature of duties being performed by them.
It is stated that all the staff drafted for Anti Corruption Bureau are being
allowed 30% of pay as incentive. The Commission feels that the nature of
work performed in Intelligence Department is different and is not
comparable to the work performed in Anti Corruption Bureau. Two
wings of the Intelligence Branch i.e., SIB and counter Intelligence are
treated on a separate footing keeping in view the nature of the job
performed by those wings. We propose to maintain that distinction and
recommend that for the other two wings the special pay as now
recommended may be extended.

Statement showing the Special Pay now admissible and amount

recommended for the various categories belonging to Intelligence
Department:

Existing Recommended
Sl.
Category amount amount Remarks
No
Rs. p.m. Rs. p.m.
A. General Intelligence
i. Superintendent of 450/-p.m. 500/- p.m.
Police (NC)
ii. Addl. S.P. 425/-p.m. 475/- p.m.
iii. Admin. Officer 275/-p.m. 325/- p.m.
iv. Dy. S.P./A.C.P. 350/-p.m. 400/- p.m.
v. Inspector of Police 275/-p.m. 325/- p.m.
vi. Reserve Inspector 250/-p.m. 300/- p.m.
vii. Sub-Inspector of 230/-p.m. 280/- p.m.
Police
viii. Reserve Sub-Inspector 225/-p.m. 275/- p.m.
ix. Asst. Sub-Inspector 200/-p.m. 250/- p.m.
x. Asst. Reserve Sub- 200/-p.m. 250/- p.m.
Inspector
xi. Head Constable 100/p.m. 150/- p.m.
xii. Police Constable 65/-p.m. 100/- p.m.
 88

Existing Recommended
Sl.
Category amount amount Remarks
No
Rs. p.m. Rs. p.m.
xiii. Asst. Admn. Officer 250/p.m. 300/- p.m.
(Int.)
xiv. Manager 250/p.m. 300/- p.m.
xv. Asst. Manager 200/-p.m. 250/- p.m.
xvi. I.B. Assistant 150/p.m. 200/- p.m.
xvii Asst. Photographer 50/-p.m. 100/- p.m.
B. Security Wing
i. Addl.S.P. 425/- p.m. 475/- p.m.
ii. Dy.S.P. 350/- p.m. 400/-p.m.
iii. Inspector of Police 275/- p.m. 325/-p.m.
iv. Sub-Inspector of 230/- p.m. 280/-p.m
Police
v. Head Constable 100/- 150/-p.m
p.m.
vi. Police Constable 65/- p.m. 100/-p.m

4. Special Pay / Incentive to the Staff of Anti Corruption Bureau

08.24. Based on the recommendation of P.R.C. 2005, orders were

issued in G.O.Ms.No.264 Fin (TA) Dept., Dt.15-10-05, enhancing the rate of
special pay to certain categories of staff working in Anti Corruption Bureau as
detailed in the statement, WEF 15-10-05. This special pay was admissible
earlier to PRC 2005 also. During the successive revision of scales of pay in
1993 & 1999, the rate of special pay was enhanced suitably based on the
recommendations of P.R.Cs.

08.25. In G.O.Rt.No.2104 GA (Spl.C) Department, dt.09-05-2003,

orders were issued sanctioning 30% of pay as incentive to all the staff of ACB
for a period of one year from 09-05-2003. This was continued for another
year from 9.5.2004 in G.O.Rt.No.2973 G.A.(Spl.C) Department, Dt.7-06-
2004. Again in G.O.Rt.No.3507 G.A.(Spl.C) Department, dt.23-05-2005 it
was continued for another one year beyond 9-5-2005. In G.O.Rt.No.4592 GA
(Spl-C) Department, Dt.7-09-2006, it was ordered to be continued from
8-5-2006 to 31-3-2007. Finally in G.O.Rt.No.1383 G.A. (Spl-C) Department,
dt.7-3-2008, it was continued for a period of 3 years from 1-4-2007 i.e. upto
31-03-2010. Therefore the sanction of 30% of pay as incentive to all the
staff of Anti Corruption Bureau is in force now.

08.26. It is noticed, from the files leading to the issue of the G.Os.
sanctioning 30% incentive to the entire staff in Anti Corruption Bureau, that
the fact of existence of special pay to certain categories of posts, at the time of
 89

consideration of 30% incentive was not taken into account since there was no
discussion on this point in the files.

08.27. As all the staff of ACB are allowed 30% of basic pay as
incentive, the commission, recommends the discontinuance of the special pay
to those categories specified in G.O.Ms.No.264 Fin.(TA) Dept., Dt. 15-10-05.
(Vide statement appended) It is obviously not the intention of the Government
to sanction special pay as also the incentive allowance.

08.28. The Incentive of 30% to all the staff was allowed on the ground
that the nature of duties in Anti Corruption Bureau are of specialised nature
and a monetary incentive was needed to attract employees with proven record
of integrity into the organisation. While this argument is valid for those who
are drawn into the Bureau from the regular police establishment or from other
organised services for limited period, in respect of staff recruited exclusively
for the Anti Corruption Bureau there is hardly any justification for grant of
incentive of this magnitude. There is need to maintain a distinction between
those who are drawn on deputation to Anti Corruption Bureau from any
service including police personnel and those posted permanently in the Anti
Corruption Bureau. The Commission, however feels that staff belonging to
the regular establishment of the Anti Corruption Bureau are also oblized to
maintain strict confidentiality and also have to work with integrity, and are
often called upon to perform arduous and unpleasant jobs. The commission,
therefore, feels that it is desirable to provide some incentive to them also
though not on par with the persons drafted from other departments.

08.29. The commission recommends to continue the existing rate of

30% of Incentive to such of the employees drafted to Anti Corruption
Bureau from other departments on deputation basis for a specific tenure,
as long as they work in Anti Corruption Bureau. As earlier
recommended they would not be eligible for special pay and should be
discontinued forthwith. In respect of the employees recruited exclusively
to work for the Anti Corruption Bureau the Commission recommends
the payment of Incentive allowance of 10% of basic pay. We understand
informally that all those working in Anti Corruption Bureau are
presently drawn on deputation only. This distinction is being drawn
specifically to address any contingencies that might arise during the
currency of the recommendations of this commission.
 90

Special Pay to be discontinued for those working in A.C.B.

Sl. Category Rate of

No. Special Pay
Rs.
i. Chief Legal Adviser 350/- p.m.
ii. Addl.Chief Legal Adviser 350/- p.m.

iii. Legal Adviser-cum-Spl. Public 350/- p.m.

Prosecutor (A.P.P.Gr.I & II)

iv. Government Counsel 350/- p.m.

v. Addl. Govt. Counsel 350/- p.m.
vi. Dy. Director 375/-p.m.
(Addl. S.P. (Non-Cadre)
vii. Deputy Director (Forests) 375/-p.m.
viii. Deputy Director (Engg.) 375/-p.m.
(Executive Engr. Cadre)
ix. Dy. Director (Rev.) 375/-p.m.
x. Dy. Director (C.T.) 375/-p.m.
xi. Chartered Accountant/ 375/-p.m.
Accounts Officer
xii. Dy. Supdt. Of Police 325/-p.m.
xiii. Dy. Executive Engineer 325/-p.m.
xiv. A.D(Admin.) (formerly P.A. to 225/- p.m.
Director General)
xv. S.B.Manager 200/- p.m.
xvi Asst. Executive Engineer 275/- p.m.
xvii. Inspector of Police 250/- p.m.
xviii. S.B. Clerk 150/- p.m.
xix. Draughtsman (Civil) Gr-I Discontinued
xx Sub-Inspector of Police 200/- p.m.
xxi Asst. Sub-Inspector of Police 100/- p.m.
xxii Head Constable 100/- p.m.
xxiii Police Constable 65/- p.m.

5. Special pay to the staff working in Farms

08.30. The Staff working in the Farms belonging to Agriculture,
Animal Husbandry, Fisheries & Horticulture Departments are now eligible for
 91

the special pay at 5% of basic pay per month subject to the condition that the
Farms are located outside 8 kms from the Municipal limits and where the staff
also stay outside 8 kms from Municipal limits. This Special Pay is
recommended to be paid at 4% of basic pay subject to the maximum of
Rs.1,000/- p.m. to the staff working in the Farms belonging to
Agriculture, Animal Husbandry, Fisheries and Horticulture
Departments. It is also recommended that the staff working in the Farms
belonging to Sericulture Department may also be allowed special pay at
the same percentage of the basic pay subject to a maximum of Rs.1,000/-
p.m.

08.31. It is further recommended that this special pay be paid

subject to the condition that the Farms are located outside 8 kms from
the Municipal limits.

6. Special Pays to the Typists and Stenographers:

08.32. Special pays are sanctioned by the Government to the

employees working as Typists, Junior/Senior/Special category Stenographers,
Personal Assistants, Private Secretaries to Chief Secretary / Special Chief
Secretary/ Principal Secretary, Secretary to Government, Reporters of
Legislature, Reporters of Shorthand Bureau of Police Intelligence Department
and Court Masters of High Court of A.P./Lok-Ayukta/A.P.A.T. etc.,

The rates of Special Pay are recommended to be increased as shown below:

Existing Recommended
Sl. Department
Amount Amount Remarks
No. & Category
Rs. Rs.
1. Typist (including Typists-cum-Assistants)
i) Lower Grade in 80/-p.m 110/- p.m
English
ii) Lower Grade in 90/-p.m 120/- p.m
Telugu/Urdu
iii) Higher Grade in 120/-p.m 150/- p.m.
English
iv) Higher Grade in 130/-p.m 160/- p.m
Telugu/Urdu
v) Lower Grade in both 150/-p.m 180/- p.m
English and Telugu /
Urdu
vi) Lower Grade in 175/-p.m 200/- p.m
Telugu/ Urdu plus
Higher Grade in
English or Lower
Grade in English plus
Higher Grade in
Telugu/Urdu.
 92

Existing Recommended
Sl. Department
Amount Amount Remarks
No. & Category
Rs. Rs.
vii) Higher Grade in 180/-p.m 210/- p.m
English plus Higher
Grade in Telugu/Urdu.
2. Stenographer:
i) Lower Grade in
80/- p.m. 130/- p.m
English Shorthand
ii) Lower Grade in
Telugu /Urdu 90/- p.m. 140/- p.m
Shorthand
iii) Higher Grade in
120/- p.m. 170/- p.m
English Shorthand
iv) Higher Grade in Stenographers
Telugu/Urdu 130/- p.m. 180/- p.m who have both
Shorthand shorthand and
v) Lower Grade in Typewriting
both Telugu/Urdu qualifications
150/- p.m. 200/- p.m
and English may be
shorthand allowed
vi) Lower Grade in special pays
Telugu / Urdu for both the
Shorthand and qualifications
Higher Grade in in accordance
English Shorthand with the rates
150/- p.m. 200/- p.m prescribed.
or Lower Grade in
English Shorthand
and Higher Grade
in Telugu /
Urdu Shorthand
vii) Higher Grade in
Shorthand in both
175/- p.m. 225/- p.m
Telugu/Urdu and
English
viii)High speed of 150
words per minute
400/- p.m. 450/- p.m
in English Persons
Shorthand drawing this
ix) High speed of 180 special pay
words per minute in 450/-p.m. 500/- p.m shall not be
English Shorthand eligible for
x) High Speed of 80 special pay of
words per minute stenographer
in Telugu 450/- p.m. 500/- p.m separately
Shorthand/
Urdu Shorthand
 93

7. Special Pays to the Teachers working in Visually Handicapped and

Hearing Handicapped Children
08.33. Based on the recommendation of PRC 2005, orders were issued
in G.O.Ms.No.264 Fin (TA) Dept., Dt.15-10-05, increasing the rates of
special pay to the following categories of Teachers working in the
Government Residential Schools for Hearing Handicapped and visually
Handicapped children at the rates shown against each WEF 15-10-05.
(i) L.T. Assistants & Gr.I Language Pandits …Rs.125/- p.m.
(ii) Secondary Grade Teachers …Rs.100/- p.m.
(iii) Higher Elementary Grade Teachers
& Special Teachers …Rs. 65/- p.m.
08.34. Based on the recommendation of O.M.C.2006, orders were
issued in G.O.Ms.No.233 Fin. (TA) Dept., Dt.10-08-2006, sanctioning special
pay to the following categories of Teachers also working in the Government
Residential Schools for Hearing & Handicapped and Visually Handicapped
children at the rates shown against each WEF 10-08-2006.
(i) Principal …Rs.150/- p.m.
(ii) Post Graduate Teacher …Rs.125/- p.m.
(iii) Trained Graduate Teacher …Rs.125/- p.m.
08.35. The Anomalies Committee 2008 in its report recommended to
extend the special pay to the teachers working in Aided Schools for Hearing
Handicapped and Visually Handicapped at the same rates as applicable to the
teachers working in Government Schools for Hearing Handicapped &
Visually handicapped children. But, Government issued orders in
G.O.Ms.No.288 Fin (TA) Dept., Dt.27-09-08 sanctioning different rates of
special pay as shown below WEF 27-09-08.

(i) Special Teachers (craft, PET & Music) ..Rs.200/- p.m.

(ii) Secondary Grade Teachers & Grade II
Pandits ..Rs.300/- p.m.
(iii) L.T. Assts. (School Assts) & Grade I ..Rs.500/- p.m.
Pandits
08.36. It is noticed from the disposal leading to the issue of
G.O.Ms.No.288 Fin (TA) Dept., Dt.27-09-08, that the rates of special pay
sought by the petitioners was inadvertently mentioned as the
recommendations of the Anomalies Committee 2008. The Anomalies
Committee merely recommended extension of the benefit of special pay
available to those Government Teachers to the Teachers working in aided
institutions also. As such, the Teachers working in Aided Schools for
Hearing Handicapped & Visually Handicapped children got an unintended
 94

benefit of higher rates of special pay than the Teachers working in

Government Schools.

08.37. The Teachers working in the Government Schools, represented

to this commission to extend the rates of Special Pay sanctioned to the
Teachers working in Aided Schools to them also.

08.38. As the Teachers working in Aided schools were allowed the

unintended benefit, it is not correct to extend the same to the Teachers
working in Government Schools. The Commission, therefore, recommends
the following uniform rates of Special Pay to the teachers working in
both the Government Schools and Aided Schools for Hearing
Handicapped & Visually Handicapped Children.

(i) Principal ..Rs.300/-p.m.

(ii) Post Graduate Teacher ..Rs.250/-p.m.
(iii) Trained Graduate Teachers/L.T.Assts./
School Assts.& Gr.I Languages Pandits ..Rs.250/-p.m.

(iv) Secondary Grade Basic Training \

Teachers & Grade II Languages Pandits ..Rs.200/-p.m.
(v) Higher Elementary Grade Teachers ..Rs.130/-p.m.
(vi) Special Teachers: ..Rs.130/-p.m.

a) Mobility Orientation Training

Teacher (MOTT)
b) Craft Teacher
c) Music Teacher
d) Physical Education Teacher (PET)

08.39. The Commission also makes it clear that the Special Pay
drawn by the staff in aided schools need not be protected as they will all
draw the special pay now recommended from the date of issue of orders.

8. Special Pays to the Drivers etc

a) Drivers

08.40. The existing rate of special pay of Rs.275/- p.m admissible to

the Drivers of all Government Vehicles is recommended to be enhanced to
Rs.350/- p.m. This special pay is also payable to all the Drivers belonging to
work charged Establishment working in all Engineering Departments of
Irrigation / Projects / Roads & Building / Panchayat Raj / Public Health
Municipal Engineering, and also to the Drivers of Tractors and other moving
vehicles and to the regular operators of Road Rollers.
 95

08.41. Taking into account the nature of work, this special pay at
Rs.350/- p.m is also now recommended to be extended to the following
categories of posts belonging to work charged establishment.

1. Assistant Drivers of Launches / Boats/ Steamers.

2. Road roller operators.
3. Launch Drivers.

08.42. The request for reckoning Special pay as pay for purpose of
calculation of D.A. & H.R.A. and the other request to grant Motor Cycle
allowance to Drivers does not merit any consideration.

08.43. The Drivers Association also represented that special pay now
admissible to them is not being paid for the period when the vehicles are
under repair. It is seen from the instructions issued by the Govt. in Irrigation
& CAD Dept., in G.M.No.14481/ Ser-V-2/2008-1, Dt:22-10-2003, that the
special pay to the Drivers is payable as per the eligibility notwithstanding the
fact that the vehicle is found not road worthy temporarily due to repairs
subject to the condition that the Drivers attend the office during the said
period. In view of the above instructions Special pay has to be paid to the
Drivers during the period covered by the repairs of the vehicle. The
Commission therefore reiterates the instructions contained in the aforesaid
G.M. Dt: 22-10-2003.

b) Attenders driving Vehicles

08.44. The existing special pay of the Rs.150/-p.m. sanctioned in

G.O.Ms.No.278 Fin.(TA) Department, dt.15-10-05, to the Office subordinates
(Attenders) who are required to perform the duties of Drivers, is
recommended to be increased to Rs.225/- p.m. If the period is less than a
month, the amount of Special pay shall be proportionate. The certificate
prescribed in G.O.Ms.No.278 Fin.(TA) Department, Dt.15-10-05 may be
continued to be prescribed.

9. Special Pay to the Section Officers and others

08.45. The existing rate of special pay of Rs.275/- p.m. admissible to

the Section Officers working in Secretariat is recommended to be enhanced to
Rs.325/- p.m. This special pay is also payable to the following categories at
the same rate of Rs.325/- p.m.

1. Section officers working in Legislature Secretariat.

2. Section officers working in Raj Bhavan Secretariat.

 96

3. A.P. High Court.

i) P.Ss to the Hon’ble Judges,

ii) Court Masters,
iii) Section Officers,
iv) Court Officers,
v) Scrutiny Officers,
vi) Accounts Officers, and
vii) P.Ss to Registrar.

4. A.P. Administrative Tribunal

i) Court Masters,
ii) Section Officers,
iii) Court Officers,
iv) Scrutiny Officers, and
v) Personal Assistants to the Hon’ble Chairman and members.

5. Institution of Lok Ayukta & Upa Lokayukta

i) Section Officers,
ii) Accounts Officer, and
iii) Personal Assistants.

6. Special Court under A.P. land Grabbing (Prohibition) Act:

i) Section Officers,
ii) Court Masters,
iii) Court Officers,
iv) P.S. to Chairman,
v) P.A. to Chairman, and
vi) Assistant Accounts Officer.

10. Special Pays to the various categories of posts in several

Departments

08.46. There are a large number of Departments where some of the

Officer / Staff are eligible for special pay. While we have dealt with a few
individual categories/ Departments separately, in this section we have
incorporated the special pay of different categories of employees spread over
a large number of Departments as indicated in the statement given below:
 97

Special Pays to the various categories of posts in several Departments

Existing Recommend
Sl. Department &
amount ed amount Remarks
No. Category
Rs. Rs.
1 Advocate General Office

P.S. to Advocate
150/- p.m 200/- p.m
General
2 Agriculture Department

i. P.A. to 125/-p.m. 150/- p.m.

Commissioner (For Officer (For Officer
posted from posted from
Revenue Revenue
Dept. on Dept. on
tenure basis. tenure basis.
The The
Departmental Departmental
officers are officers are
not eligible not eligible
for this). for this).

ii. Compositor 80/- p.m. for

all 100/- p.m
Compositors

iii. Agri. Extension 100/- p.m.

Officer (Sub- for the
Assistants existing and 125/- p.m
working in Soil future
Conservation Entrants
Scheme)
3 Animal Husbandry Department

Sweeper-cum-
Post Mortem
125/- p.m. 150/- p.m
Attendant/ Post
Mortem
Attendant
4 Common Categories
Telephone
i. 100/- p.m. 125/- p.m
Operator
ii. Cycle Orderly 60/- p.m. 75/- p.m
Motor Cycle 75/- p.m
iii. 60/- p.m.
Messenger
 98

Existing Recommend
Sl. Department &
amount ed amount Remarks
No. Category
Rs. Rs.
iv. Office Sub- 60/- p.m. 75/- p.m.
ordinate s who (Not more (Not more
attend to Roneo than one than one
work where Attender in Office Sub-
there are no posts office shall be ordinate in
of Roneo allowed this office shall be
Operator Special Pay). allowed this
Special Pay).
v) Shroff and (a)80/- p.m. (a)100/-p.m
Cashier and other (if the average (if the
Ministerial monthly cash average
personnel in the disbursed is monthly cash
pay scale of above disbursed is
Rs.10900-31550 Rs.10,000 but above
(2008 Pay scale) less than Rs. Rs.10,000 but
and below who 2,00,000/-) less than Rs.
handle cash and 2,00,000/-)
who have
furnished cash
security or (b)Rs.140/-
(b) 115/-p.m
Fidelity Bond. p.m (If
(If the average
the average
monthly cash
monthly cash
disbursed is
disbursed is
above Rs.2.00
above Rs.2.00
Lakhs but less
Lakhs but less
than Rs.10.00
than Rs.10.00
Lakhs)
Lakhs)
(c)Rs.175/-
(c) Rs.150/-
p.m.
p.m. (if the
(if the
average
average
monthly cash
monthly cash
disbursed is
disbursed is
Rs.10 lakhs
Rs.10 lakhs
and above)
and above)
5 Intermediate Education
Principals of As there are no
Govt. junior 225/-p.m. such colleges with
Colleges with - attached high
attached schools now this is
High Schools discontinued

6 School Education

Headmasters of
i.
Primary 60/- p.m. 75/- p.m.
Schools
 99

Existing Recommend
Sl. Department &
amount ed amount Remarks
No. Category
Rs. Rs.

Headmasters of
ii.
Upper 75/- p.m. 100/- p.m.
Primary Schools
Language
iii. Pandits Gr.II/
S.G.B.T.
75/- p.m. 100/- p.m.
Teachers (for
handling High
School
Headmasters in
iv.
Single 40/- p.m. 50/- p.m.
Teacher Schools

7 Endowments Department

Goldsmith 100/- p.m. 125/- p.m.

8 Forest Department

i. Asst. 250/-p.m. 300/- p.m.

Conservator of (for those (for those
Forest and Dy. working in working in
Conservator of D.F.O. flying D.F.O. flying
Forest Squad Squad
division). division).
Head Animal
ii. 100/- p.m. 150/- p.m.
Keeper
iii. Animal Keeper 75/- p.m. 100/- p.m.

iv. Mahavat 100/- p.m. 150/- p.m.

v. Keeper (Lion) 100/- p.m. 150/- p.m.
vi Booking Clerk at
Nehru
65/- p.m. 75/- p.m.
Zoological Park,
Hyd.

9 Government Pleaders’ Office

Administrator 350/- p.m 400/- p.m.

10 Institution of Lok Ayukta & Upa Lok Ayukta
i. Roneo Operator 65/- p.m. 75/- p.m.
 100

Existing Recommend
Sl. Department &
amount ed amount Remarks
No. Category
Rs. Rs.

ii. Jamedar 150/- p.m. 175/- p.m.

11 Legislature Secretariat

i. Secretary 700/- p.m. 750/- p.m.

On Par with
ii Special Secretary Nil 750/- p.m.
Secretary

iii Estate Officer 275/-p.m. 300/-p.m.

iv Watchman Nil 100/-p.m.

On Par with
Chowkidar of
Secretariat

12 AYUSH (formerly Indian Medicine & Homeopathy) Department

Principals of
Ayur, Unani &
i. 275/-p.m. 325/- p.m.
Homeo Medical
Colleges
Superintendent
of Teaching
ii. 275/-p.m. 325/- p.m.
Hospitals (Ayur,
Unani & Homeo)

Lecturer P.G.
iii. 275/-p.m. 325/- p.m.
(Ayur, Unani)

Medical Officers
iv. posted as
Lecturers in
Ayurveda, Unani
and Homeo
Medical colleges
200/-p.m. 250/- p.m.
with Post
Graduate Degree
Qualification.
 101

Existing Recommend
Sl. Department &
amount ed amount Remarks
No Category
Rs. Rs.
v. Under Graduation:
(a)Asst. 275/- p.m. 325/- p.m.
Professor (subject to
with P.G. possessing
P.G. qualifi-
cation)
(b)Professor with 275/- p.m. 325/- p.m.
P.G. (subject to
possessing
P.G qualifi-
cation)

vi. Post Graduation:

(a) Technical 200/- p.m. 250/- p.m.
Asst. with (subject to
P.G possessing
P.G qualif-
cation)
(b) Reader with 325/- p.m.
275/- p.m.
P.G.
(subject to
possessing
P.G qualifi-
cation)
275/- p.m.
(c) Professor (subject to 325/- p.m.
with P.G. possessing
P.G
Qualification

vii. Compounders 60/- p.m. 75/- p.m.

(Ayurveda,
Unani & Homeo)
viii. Sweeper-cum-
Post Mortem
Attendant/Post
125/- p.m. 150/- p.m.
Mortem
Attendant

ix. Compounder
(Ayurveda,
Unani posted in
100/- p.m. 125/- p.m.
Pharmacy
Manufacturing
units)
 102

Existing Recommend
Sl Department &
amount ed amount Remarks
No. Category
Rs. Rs.
13 Insurance Medical Services
a) 250/-p.m
Special Grade a) 200/-p.m. (Supdt.
Civil (Supdt. ESI ESI
Surgeon Hospital, Hospital,
Sanath Sanath
Nagar) Nagar)
b) 150/- p.m. b) 175/-
(Superintende p.m.
nts of other (Superinten
Hospitals of dents of
less than 100 other
Beds) Hospitals of
less than
100 Beds)
14 Medical Education Department
i. Superintendents 500/- p.m.
of Teaching
Hospitals
ii. Principal of 500/- p.m.
Dental
College of
Hyderabad
iii. Superintendent,
Nilofur 500/- p.m.
Hospital
iv. Superintendent,
Mental Hospital 500/- p.m. Since the Doctors
working in the
v. Civil Asst. 300/-p.m. teaching
Surgeons institutions are
holding the post allowed UGC
of Scales of pay the
Anaesthetist in Special Pays are
Teaching recommended to
Hospitals be discontinued.
vi. Principals of 500/- p.m.
Medical
Colleges
vii. Professor in 500/- p.m.
Medical
Colleges who
attends
to work in a
Teaching
Hospital as Civil
Surgeon
 103

Existing Recommend
Sl. Department &
amount ed amount Remarks
No Category
Rs. Rs.
viii. Civil Asst. i) 500/- p.m.
Surgeon/ for those with
Dy. Civil M.Ch./DM
Surgeon/ qualifications
Dy. Surgeon in the subject
employed as concerned
Asst. Professor / ii) 450/- p.m.
Lecturer / Tutor for those with
in Medical Post Graduate
Colleges. Degree in the
subject
concerned.
Iii) 400/- p.m.
for those with
P.G. Diploma
qualification
in the subject
concerned.
iv) 275/- p.m.
for others.

ix Professors Rs.400/-p.m.
working in w.e.f.
Non-Clinical 1-11-2001
Department

x. Lady Medical 275/- p.m. 325/- p.m.

Officer / Health
Officer
xi Sweeper-cum- 125/- p.m. 150/- p.m.
Postmortem
attendant / Post
Mortem
Attendant

15 National Cadet Corps (Accounts Branch)

i.
Junior Accounts
Officer (formerly 100/- p.m. 125/- p.m.
Superintendent)

Senior
ii. Accountant
75/- p.m. 100/- p.m.
(formerly Senior
Assistant)
 104

Existing Recommende
Sl. Department &
No
amount d amount Remarks
Category
Rs. Rs.
Junior
iii. Accountant
65/- p.m. 75/- p.m.
(formerly Junior
Assistant)
16 Police Department (other than the specific wings detailed below).

A. i. Director (FSL) 425/- p.m. 475/- p.m.

ii. Store Keeper 275/- p.m. 300/- p.m.

Asst. Admn.
iii. 275/- p.m. 300/- p.m.
Officer
iv. Manager 275/- p.m. 300/- p.m.
Chief Drill
Instructor/
v. 275/- p.m. 300/- p.m.
Chief Law
Instructor
vi. Asst. Chief Drill
Instructor
200/- p.m. 250/- p.m.
(RSI)/Asst. Law
Instructor
Sub-Inspector
vii. 65/- p.m. 75/- p.m.
(Draughtsman)
Band Master
viii 125/- p.m. 150/- p.m.
(ARSI)
Asst. Drill
ix. 100/- p.m. 125/- p.m.
Instructor
Head Constable
x. (Fitter 50/- p.m. 75/- p.m.
Electrician)
Head Constable
xi. 50/- p.m. 75/- p.m.
(Carpenter)
Head Constable
xii. 50/- p.m. 75/- p.m.
(Painter)
Head Constable
xiii 50/- p.m. 75/- p.m.
(Blacksmith)
xiv Head Constable
(Driver)
200/- p.m 250/- p.m.
(who drive four
(**) (**)
wheeler
etc.,)
 105

Sl. Department & Existing Recommended

Remarks
No Category amount amount
Rs. Rs.
xv.
Police Constable
200/- p.m.
(Driver) (who
(**) 250/- p.m. (**)
drive four
wheeler etc.,)
xvi Head Constable
(Driver) (Who 65/- p.m.
75/- p.m. (**)
drive Motor (**)
Cycles etc.,)
xvii Police Constable
(Driver)
(who drive 65/-p.m. (**) 75/- p.m. (**)
Motor Cycles
etc.)
Photographer
xviii (Rs.10900- 100/- p.m. 125/- p.m.
31550)

** Payment of this special pay will be restricted to the cadre strength of Head
Constable / Police Constable Drivers in all the wings of the Police Department
sanctioned by the Government. Any Other Allowance/ Spl. Pay now being
allowed for driving vehicles stands discontinued.
xi E.D.P. 100/-p.m. -- It is reported
x Manager that he retired
(DSP) from ser-vice.
(Sri A.Mohan Hence it is to
Krishna) be deleted
B. City Police

i. Addl. S.P. 250/- p.m. 300/- p.m.

ii. Commandant, 250/- p.m. 300/- p.m.

A.P.S.P.
C. Police Recruiting School
i. Vice-Principal
(PRS) As per G.O.Ms.No.262 Home
Amberpet, 375/- p.m. (Police- B) Department dated 26-
Hyderabad and 06-1993 orders were issued
Vizianagaram changing the name of Police
Recruit School as Police Training
ii. Dy.S.P./A.C.P. 300/- p.m.
College. Separate
iii recommendation is made for
Medical Officer 300/- p.m.
. police training colleges. Hence no
Inspector of recommendation is made.
iv. 225/- p.m.
Police
 106

Sl. Department & Existing Recommended

Remarks
No Category amount amount
Rs. Rs.
v. Reserve Inspector 225/- p.m. As per G.O.Ms.No.262 Home
(Police- B) Department dated 26-
vi. Sub-Inspector 200/- p.m. 06-1993 orders were issued
changing the name of Police
Reserve Sub- Recruit School as Police Training
vii. 200/- p.m.
Inspector College. Separate
viii. Head Constable 100/- p.m. recommendation is made for
police training colleges. Hence no
ix. Police Constable 100/- p.m. recommendation is made.
D. C.I.D.

i. Addl.S.P. 375/- p.m. 425/- p.m.

ii. Dy.S.P./A.C.P. 325/- p.m. 375/- p.m.

Inspector of
iii. 250/- p.m. 300/- p.m.
Police

iv. Sub-Inspector 225/- p.m. 275/- p.m.

v. Head Constable 100/- p.m. 125/- p.m.

vi. Police Constable 65/- p.m. 75/- p.m.

E. Police Transport Organisation:

i. Inspector of 160/- p.m. 200/- p.m.
Police
ii. Sub-Inspector 125/- p.m. 150/- p.m.
iii Head Constable 45/- p.m. 60/- p.m.
.
iv. Police Constable 45/- p.m. 60/- p.m.
v. Police Constable 275/- p.m. ** 350/- p.m. **
vi. Head Constable 275/- p.m.** 350/- p.m. **
** who are actually discharging the duties of Driver of Police Department
 107

Existing Recommende
Sl. Department &
amount d amount Remarks
No Category
Rs. Rs.
F. Police Communications
i. Inspector of 200/- p.m. 250/- p.m.
Police
ii. Sub-Inspector 200/- p.m. 250/- p.m.
iii. Asst. Sub- 145/- p.m. 175/- p.m.
Inspector
iv. Head Constable 120/- p.m. 150/- p.m.
v. Police Constable 75/- p.m. 100/- p.m.

G. Finger Print Bureau

i. Inspector of 135/- p.m. 160/- p.m.

Police
ii. Sub-Inspector 120/- p.m. 150/- p.m.
iii. Asst. Sub- 65/- p.m. 75/- p.m.
Inspector

H. DSB, DCB, RDSB, RDCB, City S.B., City C.B.

Inspector of
i. 225/- p.m. 275/- p.m.
Police

ii. Sub-Inspector 160/- p.m. 180/- p.m.

Asst. Sub-
iii. 100/- p.m. 125/- p.m.
Inspector

iv. Head Constable 100/- p.m. 125/- p.m.

v. Police Constable 65/- p.m. 75/- p.m.

17 Ports Department

i. Director 250/- p.m. 300/- p.m.

ii. Port Officer 225/- p.m. 275/- p.m.
iii. Port Conservator 100/- p.m. 125/- p.m.
Asst. Port
iv. Conservator/ 100/- p.m. 125/- p.m.
Wharf Supervisor
150/-p.m.
v. Sarang (w.e.f. 200/- p.m.
10-08-06)
 108

Existing Recommende
Sl. Department &
amount d amount Remarks
No Category
Rs. Rs.
Operator – Grade
vi. 275/- p.m. 325/- p.m.
II
vii. Oilman (Fireman) 125/- p.m. 150/- p.m.

viii. Lascar 125/- p.m. 150/- p.m.

ix. Mazdoor 125/- p.m. 150/- p.m.

18 Printing, Stationery & Stores Purchase Dept.

i. Manager (works) 200/- p.m. 250/- p.m.
(formerly Asst.
Director (Tech.)
ii. Typographer 125/- p.m. 150/- p.m.
(formerly Tracer-
cum-Artist)
iii. Dy. Director, 225/- p.m. 275/- p.m.
Kurnool
iv. Compositor 75/- p.m. 100/- p.m.

19 Protocol Department (Formerly Government House Department)

i. Additional
Director of 300/- p.m. 350/- p.m.
Protocol
(formerly Addl.
ii. Deputy Director
of Protocol
200/- p.m. 250/- p.m.
(formerly Deputy
Comptroller)
iii. Asst. Director of
Protocol
150/- p.m. 200/- p.m.
(formerly Asst.
Comptroller)
iv. Protocol Officers - 350/- p.m.
v. Manager, 150/- p.m. - Post is not in
Catering CM’s existence
Annexe

vi. Butlers - 100/- p.m.

 109

Existing Recommended
Sl. Department &
amount amount Remarks
No Category
Rs. Rs.

20 A.P. Engineering Research Labs

i. Director 500/- p.m. 500/- p.m.

ii. Joint Director 425/- p.m. 425/- p.m.

iii. Dy. Director

325/- p.m. 325/- p.m.

iv. Research Officer

325/- p.m. 325/- p.m.
Asst. Research
v. Officer/ Standard Increases are
Officers 250/- p.m. 250/- p.m.
not
recommended
Research
since the
Assistant/
existing
vi. Observer/
200/- p.m. 200/- p.m. amounts are
Mechanical
found to be
Supervisor
adequate
vii. Work Supervisor
200/- p.m. 200/- p.m.
(Computer)
Supervisor
viii.
(Computer) 200/- p.m. 200/- p.m.
ix. Computer 200/- p.m. 200/- p.m.
Assistant
x. 100/- p.m. 100/- p.m.
Computer
125/- p.m.
Draughtsman
xi. (w.e.f 125/- p.m.
Grade-I
10-8-06)
125/- p.m.
Draughtsman
xii. (w.e.f 125/- p.m.
Grade-II
10-8-06)

Engineering Departments (Irrigation & Command Area Development

21
Dept. etc. Designs, Research & Investigation Wings)
i. Superintending
425/- p.m. 600/- p.m.
Engineer
ii. Reception 450/- p.m.
425/- p.m.
Engineer (as personal to
(as personal
(Srisailam the existing
to the
Project) incumbent)
existing
incumbent)
 110

Existing Recommended
Sl. Department &
amount amount Remarks
No Category
Rs. Rs.
Executive
iii. 325/- p.m. 500/- p.m.
Engineer
Dy. Executive
iv. 250/- p.m. 350/- p.m.
Engineer
Asst. Executive
v. Engineer/Asst. 200/- p.m. 300/- p.m.
Engineer
Overseer/Draught
vi. 125/- p.m. 200/- p.m.
sman
vii. Store Keeper Gr.I 150/- p.m. 200/- p.m. Only to those
who are in-
Store Keeper
viii. 125/- p.m. 175/- p.m. charge of
Gr.II
Engineering
material of
Store Keeper Engineering
ix. 100/- p.m. 150/- p.m.
Gr.III Stores

22 Rajbhavan

i. Jamedar 140/- p.m. 175/-p.m.

on par with
ii. Daffedar - 175/-p.m.
Jamedar
Office Sub-
iii. 125/- p.m. 150/-p.m.
ordinate

Garage - 100/-p.m. on par with

iv. Supervisor Head Driver of
Secretariat
G.A. Dept.

23 Resident Commissioner, Government of A.P., New Delhi

(i) Assistant -- 350/- p.m.

Commissioner
(ii) L.A.O. -- 350/- p.m.
(iii) Protocol -- 350/- p.m.
Officer
(iv) Assistant -- 250/- p.m.
Liaison Officer
(v) Assistant -- 250/- p.m.
Reception Officer
(vi) Lift Operator 75/- p.m. *100/- p.m.
* on par with Lift
Operator in
Secretariat
 111

Existing Recommended
Sl. Department &
amount amount Remarks
No Category
Rs. Rs.

24 Chief Commissioner Land Administration

i. M.R.O 200/- P.M. 300/- p.m.
(Only for (Only for
M.R.Os M.R.Os
discharging discharging the
the duties of duties of
Executive Executive
Magistrates) Magistrates)

ii. Roneo Operator 75/- p.m. 100/- p.m.

25 Commercial Taxes Department

Joint
i. Commissioner 400/- p.m. 450/- p.m.
(Enforcement)
Joint
ii. Commissioner 400/- p.m. 450/- p.m.
(Legal)
State
iii. Representative
400/- p.m. 450/- p.m.
before Sales Tax
Appellate Tribunal
Dy. Commissioner
iv. 400/- p.m. 450/- p.m.
(Legal)

v. Asst.
Commissioner 125/- p.m. 150/- p.m.
(Services/ Legal)

26 Registration & Stamps Department

100/- p.m. 125/- p.m.
i. Sub-Registrar Gr.I
(Working as
Superintendent in
I.G. Office and
D.I.G‘s Office)

ii. Sub-Registrar Gr.II

(Working as
75/- p.m. 100/- p.m.
Superintendent
in I.G’s Office)
 112

Existing Recommended
Sl. Department &
amount amount Remarks
No Category
Rs. Rs.

27 Secretariat
i. Dy. Secretary/
300/- p.m
Joint Secretary/ 400/- p.m.
(one post
Addl. (one post only)
only)
Secretary(AIS)
ii. Asst. Secretary to
Govt. 250/- p.m. 300/- p.m.
(AIS) GAD
iii. Dy. Director
(RES)
275/- p.m. 325/- p.m.
(E.F.E.S. &T.
Dept.)
iv. Roneo Operator 75/- p.m. 100/- p.m.

v. Chowkidars 75/- p.m. 100/- p.m.

Asst. Section
vi.
Officer
65/- p.m. 90/- p.m.
(Caretaker),
Finance Dept.
Asst. Section
vii. Officer
(Caretaker), 65/- p.m. 90/- p.m.
Industries &
Commerce Dept.
Supervisory
viii. Driver 55/- p.m. 100/- p.m.
(Finance Dept.,)
ix. Head Driver,
G.A. Department 55/- p.m. 100/- p.m.

x. Asst. Section
Officer 175/- p.m 200/- p.m.
(SC Section)

Section Officer
xi 300/- p.m. 350/- p.m.
(SC)
xii. Section
Officer(SC)
G.A.D. incharge 125/- p.m. 150/- p.m. -
of Cipher
 113

Existing Recommended
Sl. Department &
amount amount Remarks
No Category
Rs. Rs.

xiii Two Asst. 90/- p.m. 120/- p.m.

Section Officers
who assist the
Section
Officer,GAD
(SC) in-charge
Of Cipher
100/- p.m.
xiv Lift Operator 75/- p.m.
xv. Record Assistant 50/- p.m. 75/- p.m.
(Working in (To be (To be
Genl.Admn. continued to continued to the
(Spl.A/Spl.B) the existing existing
Dept incumbent as incumbent)
sanctioned in
G.O. Ms.661,
Dt. 14.10.80.)
xvi Typist (working
in S.C. Sections
65/- p.m. 75/- p.m.
of Genl. Admn.
Dept. & Home
xvii Lift Operator (Sri 125/- p.m. - It is reported
V.V.Satyanaraya (Personal to that he retired
na Murthy, incumbent) from the
G.A.D.) service. Hence
it is to be
deleted.
28 Text Book Press
75/- p.m.
Compositor 100/- p.m.
for all
29 Translation & Other Departments
i. Senior Translators/ 125/- p.m. 150/- p.m.
Translators (Law (For those (For those who
Dept.) who are Sr. are Sr.
Translator/ Translators/
Translators Translators
(Law) in the (Law) in the
scale of scale of
Rs.7200- Rs.14860-
16925 and 39540 and
above) above)
 114

Existing Recommended
Sl. Department &
amount amount Remarks
No Category
Rs. Rs.

ii. Junior Translators, 90/-p.m. 120/- p.m.

Assistant (For those (For those who
Translator who are Jr. are Jr.
Translator/ Translator/
Asst. Asst. Translator
Translator in in the
the scale below Rs.
scale below 14860-39540)
Rs.7200-
16925)

30 Municipal Corporation of Hyderabad

75/- p.m.
i. Compositor 100/- p.m.
for all

11. Training Incentive / Special Pay to the Staff working in Training

Institutes

08.47. With a view to attracting talented persons as Faculty members

in the Training Institutes, Government used to sanction Training Incentive /
Special Pay, so that the quality of training would be of high standard and the
trainees, after undergoing the Training, would be able to discharge their duties
efficiently. In some cases, fixed amounts were sanctioned as special pay
(vide G.O.Ms.No.264 Fin. (TA) Dept., dt.15-10-05) while in other cases
Training Incentive was sanctioned as a percentage of Basic Pay (vide
GO.Ms.No.227 GA (AR&T.III) Department, 4-7-2000 & G.O.Ms.No.339,
Fin.(TA) Dept., Dt.3-11-2005).

08.48. It is noticed that the faculty members deputed to work in

Dr.M.Channa Reddy Human Resources Development Institute from other
Departments are eligible for Training Incentive at 15% of basic pay, while the
faculty members & other staff borne on the establishment of the Institute are
not allowed any incentive. In the case of A.P. Police Academy, Training
Incentive is allowed at 20% of basic pay to the faculty members and at 10%
of basic pay to other than faculty members irrespective of whether the faculty
members or others are drafted on deputation or were recruited exclusively for
the Institute. Similar is the case with the Police Training Colleges in the
State. It is also observed that while some categories of Police Training
College, Ananthapur, are eligible for Training Incentive at 15% of basic pay
some other categories in the same college are allowed special pay at fixed
rates. It is further noticed that the staff belonging to the Departments of
Panchayat Raj & Rural Development, Prohibition & Excise, Commercial
 115

Taxes, Survey, Settlements & Records, Fire & Emergency Services, Fisheries,
Forest and Tribal Welfare, who are working in the Training Academy /
Institute of the respective departments are allowed either Training Incentive
or Special Pay. Thus the Training Incentives are not uniform.

08.49. The Government of India in its O.M.No.13024/I/2008-Trg-I, dt.

5-9-2008 of Department of the Personnel & Training (Trg. Division) Ministry
of P.P.G. & Pension, issued orders raising the Training allowance to 30% of
basic pay for the trainers drawn from Government, Universities and academic
Institutions, in the National / Central Training Academies & Institutes for
Group ‘A’ Officers. In respect of other training establishments the incentive
of 15% of basic pay is sanctioned.

08.50. In the State of Andhra Pradesh, Dr. MCR HRD Institute, A.P.
Police Academy, A.P. Judicial (Law) Academy & WALAMTARI are Apex
Training Institutions and they are classified as category-I Institutions in
G.O.Ms.No.188 GA (AR&T–III) Department,Dt.29-03-1988 while the
Training Institutions belonging to other Departments are classified as
category-II Institutions in the above Government Order.

08.51. With a view to having uniformity between the four Apex

Training Institutes referred to above, which are categorised as category-I
institutions, the Commission recommends that Training Incentive @ 20%
of basic pay be paid to the faculty members drafted on deputation from
other departments. In respect of the other Training Institutions of the
various departments which are categorised as category-II Institutions in
G.O.Ms.No.188 G.A. (AR&T-III) Dept., Dt.29-03-1988, and also the
Training Institutes of other departments not covered by the above G.O.
the Commission recommends that training incentive be paid @ 15% of
basic pay to those faculty members drawn on deputation from other
departments/organizations. If the Training Institutions are a part of the
department and the persons are Inter-transferrable from Training Wing
to the regular departmental work, the members posted to work in such
Training Wings of the Departments as faculty members may be allowed
an incentive of 15% of their basic pay, for the period they work in the
Training Wing.

08.52. In so far as non faculty members are concerned, the

commission recommends recruitment of persons required on a regular
basis or get the work done through outsourcing. For the existing
incumbents who are on deputation to the training institutes, they may be
paid 5% of the basic pay as deputation allowance.

08.53. We feel that the present classification of the training institutes is

sound. We are, however, unable to understand why the faculty members and
 116

non faculty members recruited exclusively for the institute should be given
training incentive. We recommend that this training incentive be withdrawn
for permanent faculty of the institutes where the members were recruited for
the institute. If any allowance is being given for other than permanent faculty
who are on the rolls of the institute it should also be withdrawn. Training
incentive at 20%/15% of the basic pay, as the case may be, should be given
only to those faculty members who are drawn on deputation.

08.54. It is also recommended that, in addition to the training

incentive recommended above, no deputation allowance is payable to the
faculty members and others drafted on deputation. The existing amounts
of Special Pays indicated in the annexure should be withdrawn. We
presume that this list is exhaustive. If there are other orders sanctioning
any training allowance etc., they should all be withdrawn and replaced
by what has now been recommended by the commission.

ANNEXURE

List of Special Pays in Training Institutes proposed for deletion

Name of Training Rate of special pay Rs.

Sl. Authority
Institute p.m.
No
(1) (2) (4) (5)

1. A.P. Police Academy

1. Head Constable 100/-p.m G.O.Ms.No. 264,

Fin. (TA)
2. Police Constable 100/-p.m Department, Dt.15-
10-05

2. Police Training College at Ananthapur

1. Sub-Inspector 200/-p.m

2. Reserve Sub 200/-p.m

Inspector G.O.Ms.No. 264,
3. Head Constable 100/-p.m Fin. (TA)
Department, Dt.15-
4. Police Constable 100/-p.m 10-05

5. Medical Officer 300/-p.m

 117

Sl. Name of Training Rate of special pay Rs.

Authority
No Institute p.m.
3. VDO’s Training Centre.
1. Principal 300/- p.m
2. Asst. Director of
Animal Husbandry 200/-p.m

3. Asst. Director of G.O.Ms.No. 264,

200/-p.m
Agriculture Fin.(TA)
4. Vety. Officer 125/-p.m Department, Dt.15-
5. Chief Instructress 125/-p.m 10-05
6. Agriculture
125/-p.m
Officer (Trg.)
7. Agriculture
125/-p.m
Officer (Farm)
4. Survey, Settlement & Records
1. Director 300/- p.m
2. Senior Faculty 200/- p.m
G.O.Ms.No. 339,
Members
Fin.(TA)
3. Other Faculty 150/- p.m
Department, Dt.3-
members
11-05
including Training
Associates
5. Fire & Emergency Services, State Training & School
1. Asst. Divisional 125/-p.m G.O.Ms.No. 264,
Fire Officer Fin. (TA)
2. Leading Fireman 65/-p.m Department,
Dt.15-10-05
6. Fisheries Department Training Institute
1. Principal (F.T.I) 250/-p.m G.O.Ms.No.
264,Fin.(TA)
2. Lecturer (F.T.I) 125/-p.m Department, Dt.15-
10-05
7. Forest Department
Principal, Forest 300/-p.m G.O.Ms.No. 264,
School, Yellandu Fin.(TA)
Department, Dt.15-
10-05
8. Tribal Welfare Department
Tribal Cultural Training & Research Institute
Director 250/- p.m. G.O.Ms.No. 264,
Fin.(TA)
Department, Dt.15-
10-05
 118

CHAPTER - IX
Automatic Advancement Scheme

09.01. The Automatic Advancement Scheme was introduced in May

1981 as partial response to the demands of the various Associations for
ensuring adequate promotional opportunities in their career. It is well known
that the promotional opportunities vary from Department to Department and
are largely dependent upon the thrust of the Governmental programmes at
different points of time. Since the focus may vary from time to time it is
possible that rapid promotional opportunities available in one Department at a
particular point of time may not be sustained as a result of a shift in the
emphasis in the programmes implemented by the Government. Since it is not
possible for Government to ensure adequate promotional opportunities for all
employees it was decided in 1981 to introduce a scheme of Automatic
Advancement by which the employees are at least monetarily compensated
for lack of promotional opportunities. The scheme that was introduced in
1981 was reviewed by successive Pay Revision Commissions. While some
modifications were made over time the main components of the programme
remained, by and large, the same.

09.02. The Scheme as it now exists, covers both those who have
opportunities for promotion in their hierarchical structure and those who do
not have any promotion channels. The scheme varies depending on whether
the post in which the employee is working has opportunities for promotion or
not. In the first instance, all employees who remained in the same scale for a
continuous period of 8 years would be placed in a special grade post which is
a scale immediately higher than the scale in which he was working. If he
continues without promotion for a continuous period of 16 years he would be
placed in the Special Promotion Post I which carries a scale of pay of the first
promotion post in the hierarchy to which he would be normally promoted had
he got his promotion. If the employee continues in the same post for a
continuous period of 24 years, he would be placed in Special Promotion Post
II which carries a scale of pay in the second level promotion post in his
Department’s hierarchy. In case there is no promotional post available in the
Department the member of the service would be placed in the Special Adhoc
Promotion Post after 16 years of continuous service in the same post. This
carries a scale which is immediately higher than the 8 year scale. If he
continues to remain in the same post for a continuous period of 24 years, he
would be placed in a scale which is immediately higher than the scale in
which he was placed after 16 years.

09.03. The various Associations desired that the Automatic

Advancement Scheme should continue. They have however, suggested some
 119

modifications to the scheme to make it more attractive. The following are

some of the important improvements suggested to the Scheme.

1. Reduce the waiting period under the Automatic Advancement

Scheme and also increase the number of upgradations. The
requests regarding periodicity of upgradation varied from every
5 years to 8 years and the number of upgradations varied from 3
to 5.

2. The upgradation may be made whether the employee is

qualified for promotion or not on the ground that there is no
change in the work turned out by the employee.

3. It was suggested that pay fixation benefit in each one of these

cases may be given under F.R. 22-B.

4. The benefit under Automatic Advancement Scheme may be

extended upto Grade XXVIII.

5. In case the application of the scheme results in the senior

drawing less pay than the junior at any time, the senior’s pay
may be brought on par with that of his junior.

09.04. Before considering the above suggestions it will be

advantageous to briefly look at the evolution of the Automatic Advancement
Scheme. This Scheme was introduced in 1981 and was first reviewed by the
Pay Commission in 1986. The Scheme, as worked out by the 1986
Commission, envisaged that every employee, after putting in a service of 10
years in a particular scale, shall be eligible for the next higher scale, which is
called the Special Grade Post. When promotion posts are available under
normal service rules, if an employee continued in the same post for a period
of 15 years, he/she shall be eligible for appointment to the SPP.I Scale,
which is the promotion post in the regular line of promotion from the post
held by him. The second level promotion post scale is given to those, who for
a continuous period of 22 years, continue in the same post without promotion.
The Automatic Advancement Scheme covered improvements in Scale after
10, 15, and 22 years of continuous service in the same scale. This benefit of
Automatic Advancement Scheme to SPP I & SPP II was available only to
such of those employees who were qualified to hold the promotion post
under the relevant service rules but could not get promotion for want of a
vacancy. Since there were several posts under Government where promotion
channels did not exist, special adhoc promotion posts were allowed for the
benefit of those who have completed 15 years of service and they were placed
in the special adhoc promotion post which carried a scale of pay, which is one
grade above the special grade post held by the employee. After completion of
 120

22 years of service, there was a further upgradation with a similar increase to

the next higher scale. It may, thus, be seen that the special grade was
available to every one without any pre-conditions and the special promotion
post at both the levels (15 years and 22 years) were available only to those
who were qualified. If promotion posts were not available in that Department
special adhoc promotion posts were granted where the scale of pay might be
equal to or lower than the scale of pay available to the promotion post. The
1993 Commission noted that the scheme in that form had some distinct
problems.

1. There were a number of instances where the junior started

drawing higher pay than the senior if he happened to get regular
promotion after availing himself of the benefit of the special
promotion post. Since a senior normally is expected to get the
promotion earlier, such instances were numerous.

2. As regards SPP II, it was noticed that the benefit enjoyed by

people in different departments varied substantially. Very few
people got the benefit under the scheme as it was unlikely that a
person would remain in the same post without regular
promotion for a continuous period of 22 years. Further, since
the scales in the promotion posts varied from department to
department, the quantum of benefit derived, varied based upon
the department in which an employee is placed. There were
instances where an employee who was in receipt of benefit
under SPP II had to work under a person who got a regular
promotion which carried a pay scale equivalent to SPP I.

09.05. In order to remove this anomaly, the 1993 Pay Commission

modified the scheme as follows:

(i) Special grade pay scale was to be given after 8 years; SPP I
after 16 years; and an increment after completion of 24 years.

(ii) The Commission also recommended that the benefit of FR 22-B

may be made available only to those who got promotion without
getting the benefit of Automatic Advancement Scheme;

(iii) In the case of departments where there are no promotional posts,

they were to be given the next higher scales after 8 and 16 years
and an increment after 24 years. This dispensation broadly
addressed the problem of a senior drawing less pay than the
junior.
 121

09.06. The 1999 Commission continued the Scheme without any

modification.

09.07. The 2005 Pay Commission after a review of the scheme,

recommended the continuation of the special grade after 8 years and the
special promotion post scale / special adhoc promotion post scale after 16
years. In place of an increment at the end of 24 years, the Commission
recommended a second level promotion post called the special promotion post
scale II / special adhoc promotion post scale II for those who have completed
24 years of service without any promotion. They also recommended that
those who get promoted to the regular post be given pay fixation benefit
under FR 22-B even if they had availed of the benefit of SG/SPP-I.

09.08. The modifications to the Automatic Advancement Scheme

made by the 2005 P.R.C., has lead to a spate of representations which were
considered by the Government and also by the Anomalies Committee. It was
pointed out by the Unions that an anomaly has been created between Seniors
who availed the benefit of A.A Scheme prior to 1.7.2003 and their juniors
who were given the benefit of the revised scheme after 1.7.2003. The
anomaly has been created primarily due to the reintroduction of pay fixation
under F.R. 22-B w.e.f.1.7.2003 as recommended by the P.R.C., 2005 which
enabled the juniors to get a better pay fixation under this scheme compared to
their seniors who got only the benefit of pay fixation under F.R. 22 (a) (i) read
with FR 32(2). A number of examples have been cited by the Unions which
clearly brought out instances where the juniors got a higher pay fixation than
their seniors. The request to bring the pay of seniors on par with their juniors
who were drawing a higher pay scale was rejected by the Government
through their Circular Memo No. 2620-A/65/FR II/07 dt.20.2.2007. The
request of the unions was to rectify this anomaly. We shall revert to this at a
later stage.

09.09. The point that was urged before the Commission was the need
for revision of the time span for getting the benefit of A.A. Scheme. It was
pointed out that 8, 16 and 24 years was introduced at a time when the age of
entry to the Government service was between 24 to 28 years. In the absence
of the regular recruitment and substantial relaxations with regard to the age of
entry into Government service, a large number of people are entering the
Government service at a fairly advanced stage and would be retiring without
the benefit of getting A.A. Scheme if the time intervals for A.A. Scheme are
not substantially reduced. The Commission feels that the solution lies in
annual recruitment of personnel with a clear cut off date with regard to the
age of entry into Government service rather than modify the scheme to
accommodate people entering Government service at an advanced age. It
should be remembered that A.A.Scheme is not a stand alone scheme and is a
substitute for those who are entitled to get promotions but are unable to get
 122

them at regular intervals because of stagnation and lack of expansion of the

Department. Some times the number of people entering the Department at a
lower level in a single recruitment is so large that only a few people are able
to advance through the hierarchy and get promotions at appropriate stages.
This is commonly seen in categories where the recruitment is not done at
regular intervals. Often, the economy instructions are cited as the reason for
postponing direct recruitment. This not only violates the Service Rules which
stipulate a certain percentage of vacancies to be filled in through direct
recruitment but also create distortions in the hierarchical structure. Since the
AA scheme is a monetary substitute for regular promotions, the Commission
feels that the Government should address the basic problem rather than deal
with the fall out of faulty recruitment policy. We, therefore, urge the
Government to subject the cadres to periodic review and build in a policy
whereby employees get promotions at reasonable intervals.

09.10. We have gone through the Memorandum submitted by all the

major Associations and all of them are in favour of the continuation of the
present Automatic Advancement Scheme at intervals of 8 years. This Scheme
has also stood the test of time and has substantially met the concerns of those
who, though qualified, are unable to get promotion for want of vacancies.
The Scheme as it stands today provides at least a monetary compensation in
lieu of regular promotion. We, therefore, endorse the existing scheme of
Special Grade after 8 years, Special Promotion Post-I after 16 years and
Special Promotion Post-II after 24 years. In respect of those who do not
have the promotional opportunities, they will continue to be covered by
the Special Grade after 8 years, the Special Adhoc Promotion Post I after
16 years and Special Adhoc Promotion Post II after 24 years.

09.11. The second issue is the demand for upgradation without

reference to the qualifications required for promotion. This assumes that the
salary revisions should take place at periodical intervals without reference to
the promotional opportunities within the Department and the qualifications to
be fulfilled to be eligible for promotion. Since the Automatic Advancement
Scheme is to compensate those who are not able to get promotions, though
qualified, for want of vacancies, the Commission is not prepared to accept the
plea that Career Progression should take place at periodical intervals without
reference to qualifications required for promotion. There, has to be,
necessarily, a linkage between the Career Advancement and qualifications.
We are however, conscious of the fact that the Government, as a matter
of policy, announces relaxations from time to time to enable the
employees to get promotions without passing some departmental tests.
Where such relaxations are made available for regular promotion, the
Commission recommends that this should automatically be applied to the
Automatic Advancement Scheme and the upgradations should be
effected with reference to those relaxations.
 123

09.12. A related issue that was raised by some of the Associations,

deals with the issue of amendments issued to the Service Rules varying the
eligibility criteria for the promotion posts after the incumbents joined service
in the lower posts. The issue that was raised was that these amendments
which involve some times acquisition of additional academic qualifications
have effectively prevented them from getting either promotion or the benefit
of Automatic Advancement Scheme as the Automatic Advancement Scheme
becomes applicable only if the employee is qualified for promotion. It is
noticed that the Departments have been varying the requirements both
academic and technical qualifications for direct recruitment as well as
promotion in order to deal with increasing complexities arising out of the
advancements that are taking place in various fields. While improvement in
qualifications is desirable to cope with the emerging challenges of the
department, it is indirectly affecting the fortunes of the serving employees
who joined the department assuming that they would be able to reach higher
echelons in their service with their existing qualifications. Such instances
may be rare but they do exist. The Commission gave a serious consideration
to the issue of how to provide relief to such categories of employees. It is
obvious that those who are not eligible for promotion cannot be given special
promotion scales I & II. The issue for consideration is whether they can be
considered for special adhoc promotion post which gives them the benefit
of the next higher scale. The Commission feels that such a special
dispensation should be given only to those categories of employees who
are adversely affected by an amendment to the required qualifications
for promotion after they joined service. The criteria of judging whether
an employee would be eligible for this special benefit is to examine
whether he has been denied the opportunity of getting the promotion
only because of the variation in the qualifications effected for the
promotion post subsequent to his appointment. In other words, it means
that when he joined service, the conditions were such that he could have
got promotion to the higher post and he is now being denied the higher
post because of change in the qualifications. We recommend that in cases
of the nature indicated above they be given Special Adhoc Promotion
scales I & II with the restrictions already stipulated. We would also like
to stress that those who benefited from this dispensation cannot claim the
benefit of SPP-I or II even if they acquire the necessary qualification at a
later date.

09.13. The next major issue is whether the benefit of fixation of pay
should be allowed under FR 22-B in case an employee gets a regular
promotion after availing the benefit of SPP I or SPP II. This benefit was
available prior to 1993. The PRC 1993 made an extensive study of the impact
of pay fixation under FR 22-B on the senior employees and came to the
conclusion that it is not desirable to have pay fixation under FR 22-B in case
 124

an employee gets promoted after getting the benefit under the Automatic
Advancement Scheme. While this position was maintained in the subsequent
Pay Commission in 1999, the Pay Commission of 2005 reintroduced the
benefit of pay fixation under FR 22-B from 1.7.2003. This has caused a
considerable problem between those who got promoted prior to 1.7.2003 and
those promoted subsequent to that date. While those who got promoted prior
to 1.7.2003 got the benefit of fixation under 22 (a) (i) read with FR 31(2), the
juniors who got promoted after 1.7.2003 got a substantial benefit in terms
of FR 22-B. This resulted in the junior drawing a higher pay than the senior.
When this issue was represented to the Government, it did not favour
reopening of the issue and gave categorical orders to the effect that there
would be no stepping up of pay of the senior on par with the junior as it
would amount to reopening a PRC decision of 1993 endorsed by the 1999
Commission. The employees feel aggrieved that a peculiar situation that has
arisen as a result of the change effected by the PRC in 2003 which resulted in
an anomalous situation of senior drawing less pay than the junior was not
addressed sympathetically by the Government. There was, in fact, a serious
demand made before this Commission for reopening the pay fixations
effective from 1.7.2003 and rectifying the situation by stepping up the pay of
the senior to match that of the junior wherever the junior was drawing higher
pay than the senior. This request obviously is outside the purview of this
Commission. This Commission has neither the competence nor mandate to
reopen a settled issue. However, we are seized of the seriousness of the
situation and are conscious of the fact that in the present dispensation under
the Automatic Advancement Scheme such occurrences are not going to be
one time occurrences arising out of the shift in policy between 1993 and 2005
but will continue to arise as there would be instances where a junior after
drawing the benefits under Automatic Advancement Scheme may get his
promotion while the senior may get promotion without getting the benefit
under the 16 / 24 year rule.

09.14. The problem of Senior drawing less pay than the Junior has
largely arisen due to the change in the manner of fixation of pay on
promotion. The pay fixation under the Provisions of FR 22-B would definitely
confer a larger financial benefit to those who get promoted after availing of
the benefit of Special Grade or SPP-I. One obvious solution lies in reverting
to the pattern obtaining prior to the last pay revision wherein the benefit of FR
22-B was available only to those who were promoted without getting the
benefit of SPP-I or SPP-II. Though such a solution looks attractive, it will
amount to withdrawing a benefit already conferred on the employees and will,
as in the case of 2003, create two classes of people with different financial
benefits. We do not, therefore, propose to revert to the pre 2003 pattern of the
pay fixation. We recommend that the pay of those who get promoted may
be fixed under FR 22-B. At the same time we would also like to address the
problem of the Junior drawing higher pay than the Senior. The Commission
 125

recommends that Government should revisit the orders issued in Govt.

Memo.No.2620-A/65/FR.II/07 dated 20.02.2007 by which the request for
extending the benefit of refixation of pay of the senior when it happens to be
less than the junior was negatived. The Commission recommends that in
case the pay fixation under FR 22-B results in the senior drawing less pay
than the junior, the senior’s pay should be stepped up to bring it on par
with the pay of the junior. The conditions for such refixation would be
the same as spelt out in para 2 of G.O.Ms.No. 297, Finance & Planning
(FW-PRC.I) Dept. dated 25.10.1983.

09.15. The Associations have represented for extending the benefit of

AA Scheme upto Grade XXVIII. The grounds urged are that there is
considerable stagnation at various levels beyond the present levels covered by
the AA Scheme leading to frustration as they continue in the same scale and
perform the same functions for a long number of years and that such a
situation leads to fatigue and lack of interest. The problem of stagnation
arises in some Departments because of a large number of senior posts at the
base level with a considerable shrinkage of posts as the pyramid rises. The
classic examples are that of the Civil Assistant Surgeons, Veterinary Assistant
Surgeons, Agriculture Extension Officers and Mandal Development Officers.
These are categories of employees who are directly recruited in large
numbers to man the positions at the lowest level, namely the Mandal. Even if
some posts are created at the Divisional, District and Zonal level the
proportion of those posts to the posts which are at the base level would still be
small. This problem has to be solved by the Administrative Department and
can not be resolved by the P.R.C. The complexity of the service rules
specially with the classification of posts as District, Zonal, inter zonal &
state level posts further compounded by the judicial pronouncements make
the whole exercise of rationalizing the cadre structure quite daunting. The
P.R.C., can only provide monetary relief through the A.A. Scheme. The issue
is the level up to which the scheme should be made applicable. As of now,
the scheme is available up to Grade XXI. Though a large number of
employees are covered under the AA scheme, there may be a few instances
where the direct recruit officers on getting their first promotion may go out of
the scheme and may also stagnate with no chances of promotions. Such
employees also deserve to be covered under the A.A scheme. We, therefore,
propose to extend the benefit of coverage of the scheme upto the existing
grade XXV.

09.16. There are a number of procedural issues on which there appears

to be lack of clarity and consistency in the interpretation given in respect of
the scheme. A few of those issues which came to the notice of the
Commission are dealt with in the following paras for ensuring that the
intended benefit of the scheme reaches the targeted group and there are no
hassles at the implementation stage.
 126

09.17. One of the issues that came to our notice is that of an employee
who got the benefit of Special Grade, and the Special Promotion Post I after
which he was appointed to the higher post on actual promotion. After getting
the promotion the individual, on completion of 8 years was placed in the next
higher grade. On further completion of another 8 years the employee had to
be placed in Special Promotion Post II. The issue raised is whether this
amounts to four distinct benefits when the automatic Advancement Scheme
contemplated promotions in Scale of at least three times as indicated at Para
2(b) of G.O.Ms.241 Finance (PC II) Department dated 28.9.05. We are of the
firm view that the three upgradations referred to in the cited G.O. is
indicative and not restrictive in nature. We, therefore, feel that on
completion of the specified periods, if the employee is qualified he/she
should be entitled to the benefit contemplated under the Scheme. The
other issues that were brought to our notice related to the following:

(a) What is the date that should be taken into account for counting
the years when the date of increment varies from the date of
promotion due to fixation of pay under FR 22-B from the date
of normal increment in the lower category or from the date of
pay fixation under FR 22 a (i) read with FR 31(2). The
Commission is of the view that the date to be reckoned is the
date of fixation of pay under FR 22 a(i) read with FR 31(2) as
otherwise it would amount to ignoring the service rendered by
him in the promotion post.

(b) Whether the increment should have been actually drawn to

count the years of 8,16 & 24. If the increment is not drawn as a
measure of punishment, it would automatically be eliminated
even under the present guidelines. There may, however, be
instances where the employee had reached the maximum and
exhausted even the stagnation increments, if any. To cover such
cases, we recommend that the service to be reckoned/ years to
be counted, shall be the service that would normally count for
increment even if it is not drawn due to the exigencies
mentioned above. The physical drawl of increments need not
be insisted upon for extending the benefit of Automatic
Advancement Scheme.

09.18. In conclusion we recommend that the Automatic Advancement

Scheme may be implemented as indicated below :

(1) The existing Special Grade, SPP I/ SAPP I/ SPP II/ SAPP II
may be continued with the Special Grade after 8 years, SPP-
I/SAPP-I after 16 years and SPP-II/SAPP-II after 24 years.
 127

(2) If service rules are changed imposing additional

qualifications for promotion after the entry of the individual
into service thereby depriving him of the benefit of
promotion he may be given the benefit of the next scale
contemplated under the special Adhoc Promotion Post I &
II.

(3) The benefit of pay fixation under FR22-B be continued on

promotion even if the employee had derived the benefit
under SG or SPP I and if this results in the senior drawing
less pay than the junior the pay of the senior be stepped up
to that of the junior subject to the conditions enumerated in
G.O.Ms. No. 297, Fin. (PRC I) Dept., dated 25-10-1983.

(4) Where rules are relaxed to enable regular promotion, they

should be automatically extended to the Automatic
Advancement Scheme for purposes of extending the benefit
of SPP-I / SPP-II.

(5) In certain categories like Attender, Dafedar, Jamedar and

Record Assistants it was decided that the services rendered
by them in these categories together shall be reckoned for
purpose of Automatic advancement Scheme. We
recommend continuation of this special dispensation.

(6) The benefit of Automatic Advancement Scheme be extended

upto and inclusive of Grade-XXV in the revised scales i.e.,
Rs.25,600 – 50,560.
 128

CHAPTER - X
Leave Benefits

10.01. State Government employees are governed by the Andhra

Pradesh Leave Rules and the various executive instructions issued by
Government from time to time liberalizing the provisions relating to earning
of leave, grant of leave etc., Employees are also permitted to surrender a
portion of Earned Leave while in service subject to certain conditions and to
get the leave salary in lieu thereof. Provision is also there for the payment of
the value of earned leave at credit and Leave on Half pay at credit, at the time
of retirement or on the date of death (in the case of death of the employee
while in service). Keeping in view the existing provisions and the requests
made by the Associations, the following recommendations are made.

1. Sanction of earned leave at a time to the employees.

10.02. As per rule 11 of A.P. Leave Rules the maximum earned leave
that may be granted at a time to a regular Govt. servant in superior service
shall be 120 days. The same provision applies to the employees belonging to
last grade service also in view of the orders issued in G.O.Ms.No.329 Finance
Dept. Dt: 17-12-1982, read with G.O.Ms.No.9 Finance Dept. Dt: 10-1-1983.
As of date, the maximum accumulation of earned leave to the employees is
300 days. The limit of 120 days referred to in the above rule might have been
prescribed at the time when the accumulation of earned leave was 120 days
only. Subsequently the maximum accumulation of leave was raised to 180
days in the year 1964 and it was further raised to 240 days in the year 1983
and finally it was enhanced to 300 days w.e.f. 16-9-2005. The maximum
accumulation of leave was enhanced from time to time basing on the orders
issued by the Govt. of India to its employees. As per Rule 26 (2) of the leave
rules applicable to the employees of Govt. of India, the maximum earned
leave that may be granted at a time shall be 180 days. Since the State Govt. is
broadly following the Fundamental rules and Leave rules of the Govt. of
India, it is appropriate that the employees of the State Govt. are also granted
earned leave at a time upto a period of 180 days. The Commission,
accordingly, recommends that the regular State Govt. employees may be
granted earned leave at a time upto 180 days on par with the employees
of the Govt. of India.

2. Maternity leave to married women employees:

10.03. As per the existing orders the married women employees are
eligible for the sanction of Maternity Leave upto 120 days upto two surviving
children. The Government of India earlier issued orders enhancing it to 135
 129

days and it was further enhanced to 180 days based on the recommendations
of 6th CPC. The employees associations have requested to extend the same to
the Women employees working in the State Government also. PRC 2005 did
not recommend the extension of this leave from 120 to 135 days on the
ground that a period of 120 days is considered adequate and since paternity
leave is also recommended. The recommendation of 6th CPC upto 180 days
was based on the guidelines of Ministry of H & FW which recommends
nursing of children upto the age of 6 months. The Commission therefore
recommends grant of Maternity leave to the married women employees
of the State upto 180 days on par with the employees of Government of
India subject to the condition that the same would be available upto 2
surviving children only.

3. Child Care Leave to the Women Employees:

10.04. At present the Women employees of the State Government are

not eligible for the grant of Child Care leave. Based on the recommendation
of the 6th Central Pay Commission the Government of India issued orders
permitting the Women employees of the Government of India having minor
children, to avail of Child Care leave for a maximum period of 2 years (i.e.
730 days) during their entire service for taking care upto 2 children whether
for rearing or to look after any of their needs like examination, sickness etc.
Child Care leave shall not be admissible if the child is eighteen years of age
or older. (vide O.M.No. 10318/2/2008-Estt.(L) dated:11-9-2008 of
Department of Per. Trg. Government of India) It was further clarified by the
Government of India that this child care leave shall be admissible for the two
eldest surviving children only. The Joint Action Committee of employees
requested to extend the same benefit to the Women employees of the State
Government also.

10.05. The Commission has separately recommended enhancement of

the period of maternity leave from the existing 120 days to 180 days. The
Departments have been repeatedly complaining of inadequate staff due to
vacancies and delays in completing recruitment and deployment of personnel.
Absence of employees for long spells disrupts the smooth execution of Govt.
programmes. The Commission is therefore not inclined to consider the
request for sanction of Child Care leave for the women employees

4. Additional Casual Leave of 5 days to the women employees on par

with Women Teachers

10.06. At present the Women Teachers are eligible for extra casual
leave of 5 days in a calendar year as per G.O.Rt.No.374 Education (Ser-V)
Dept. dated: 16-3-1996. The associations requested to extend the same to all
the Women employees (i.e., other than Women Teachers) also. The Women
 130

Teachers have limited facility of earned leave of only six days in a year while
the other women employees will earn 30 days per year. Therefore,
comparison with Women Teachers in the matter of allowing additional casual
leave of five days does not deserve consideration. The Commission sees no
merit in the demand and is therefore not inclined to recommend the extra
casual leave of five days to the women employees on par with Women
Teachers.

5. Encashment of Leave on Half Pay- revised formula:

10.07. As per the existing orders the cash equivalent of leave salary on
account of encashment of leave on half pay shall be calculated in the manner
indicated below.

Leave salary on half pay

(+) D.A thereon if
admissible (-) pension (+) Number of days of
pension equivalent of Leave on half pay
Cash payment gratuity and Dearness
in lieu of LHP due, subject to the
Relief on pension limits prescribed in
encashed = X
the rules.
30

10.08. The above formula was adopted based on the orders issued by
Government of India to its employees.

10.09. Based on the recommendations of 6th CPC, the Government of

India issued revised orders changing the formula in the following manner-
(vide O.M.No.14028/3/2008- Estt. (L) dated:25-9-08 of Department of
personnel & Training Ministry of P.PG & Pension, Government of India).

Half pay leave salary No. of days of half

Cash admissible on the date of pay leave at credit
payment retirement plus D.A. subject to the total
in lieu of half admissible on that date of earned leave and
pay leave = x half pay leave at
Component 30 credit not
exceeding 300
days.

10.10. The Employees’ Associations requested to adopt the above

formula in the case of encashment of L.H.P. of the State Government
 131

employees. The Commission after examining the above requests

recommends to adopt the same formula in the case of encashment of
Leave on Half Pay at the time of retirement / death in the case of State
Employees also subject to the condition that the total number of days of
earned leave + leave on half pay put together should not exceed 300 days
for encashment.

6. Payment of D.A. during the period of Leave on half pay :

10.11. Several associations represented that in G.O.Ms.No.21 Fin (PC

I) Dept. dated: 19-1-94 orders were issued allowing full DA during leave on
half pay to such of the employees drawing pay upto and inclusive of the scale
of pay of Rs.3110-6380 in RPS 1993 and that though the pay scales were
revised in 1999 and again in 2005 similar orders were not issued. Though the
One Man Commission 2006 and Anomalies Committee 2008 in their reports
made a specific recommendation to issue similar orders in the corresponding
scales of PRC 1999 and PRC 2005 no orders were issued by the Govt.

10.12. As per the instructions contained in O.M.No.18011/1-E-II(B)/76

dated 21-11-1977 read with O.M.No.1(13)/97-E.II(B) dated 3-10-1997 of
Ministry of Finance, Govt. of India, the allowance during leave will be based
on the leave salary actually drawn for the purpose of monetary limits within
which the allowance is admissible and for calculation of the amount of the
allowance. In matters relating to application of Fundamental Rules and Leave
Rules the State Govt. is following broadly the pattern obtaining in the Govt.
of India.

10.13. The Commission therefore feels that the employees of State

Government may be allowed DA based on the leave salary admissible while
on leave on half pay on par with the employees of Government of India.

10.14. Accordingly, the Commission recommends that the

employees of the State Govt. may be allowed D.A. based on the amount of
leave salary admissible while on leave on half pay on par with the
employees of Govt. of India.

7. Payment of H.R.A. / C.C.A. during the period of leave:

10.15. S.R.(4) of F.R.44 permits the payment of local allowances i.e.

HRA and CCA for a period not exceeding 4 months while the employee is on
leave. However, ruling (14) under the above rule permits the payment of
above allowances upto a period of 8 months, if the leave is sanctioned for the
treatment of Tuberculosis/ Cancer and also other ailments such as Mental
Illness, Heart Diseases, Leprosy and Renal failure.
 132

10.16. The associations have represented for sanction of local

allowances during the entire period of leave on the ground that the employee
continues to incur the expenditure on payment of House Rent and withholding
of the allowances beyond 4 months causes considerable hardship.

10.17. The restriction of 4 months specified in the above rule might

have been incorporated when the maximum period of accumulation of earned
leave was 120 days. Subsequently, the maximum accumulation of earned
leave was enhanced to 180 / 240 days and finally it is 300 days at present. The
leave rules specify that the earned leave should not be granted for more than
120 days at a time. But the same rules permit the sanction of other leave such
as leave on half pay, commuted leave, leave not due and extraordinary leave
in continuation of earned leave of 120 days. This is subject to the condition
that the total continuous period of absence on leave should not exceed five
years. The employee is eligible for leave salary on full pay when commuted
leave was sanctioned. The leave salary for the period of leave on half pay/
leave not due is half of the pay. No pay is admissible during the period of
extraordinary leave. Therefore, if leave on half pay/ leave not due is
sanctioned in continuation of the earned leave upto 120 days, the local
allowances are to be restricted upto 120 days only based on the existing rules.

10.18. As per the rules applicable to the employees of Govt. of India,

the payment of H.R.A. and C.C.A. are admissible during leave upto a period
of 180 days at the same rates at which the employee was drawing these
allowances before proceeding on leave. Further, the limit of 180 days shall be
extended to 8 months for the purpose of the grant of H.R.A. & C.C.A. in the
case of employees suffering from T.B., Cancer or other ailments during the
period of their leave taken on Medical Certificate when such certificates are in
the forms prescribed. It is immaterial whether the leave is on medical
certificate from the very commencement or is in continuation of other leave.
In the case of employees suffering from T.B., Cancer or other ailments, who
remain on leave for a period exceeding 8 months, the grant of H.R.A. and
Compensatory (City) Allowance for the period of leave beyond 8 months,
may be decided by the respective Controlling Authorities without consulting
the Ministry of Finance irrespective of the period of leave involved so long as
the medical certificate in the prescribed form is available. (Vide O.M.No.F.2
(37) E-II (B)/64 dated 27.11.1965 as amended from time to time including
O.M.No.2 (21)/ E.II (B)/2004 dated18.11.2004 of Ministry of Finance, Govt.
of India).

10.19. As in the case of regulation of D.A. while on leave, the

payment of H.R.A. & C.C.A. may also be allowed to State Govt.
employees as applicable to the employees of Govt. of India. The
Commission therefore recommends the payment of H.R.A. / C.C.A. upto
180 days during leave of all kinds in the normal course. However, in case
 133

the leave is granted to the employees who are suffering from Cancer and
other ailments such as Mental illness, Heart diseases, Leprosy, Renal
failure and HIV Aids they may be paid H.R.A. / C.C.A. upto a period of 8
months. The Commission further recommends that if the employees are
suffering from the above ailments, & who remain on leave for a period
exceeding 8 months, the grant of H.R.A. / C.C.A. for the period of leave
beyond 8 months may be decided by the Head of the Department
concerned so long as the period of leave is supported by the Medical
Certificate in the prescribed form. The Commission feels that since T.B.
is easily curable with advances in medicine there is no need to extend the
facility to patients suffering from T.B.

8. Payment of Ex-gratia Allowance to the employees who were

granted Extra-ordinary leave for the treatment of certain diseases:

10.20. Note(4) under Rule 28 of Andhra Pradesh Leave Rules permits

the payment of Ex-gratia allowance to the Non-Gazetted Government
Servants, while on extra-ordinary leave for the treatment of T.B/ Leprosy/
Cancer/ Mental illness / Heart diseases and Renal Failure. This allowance is
equal to half of his pay subject to the minimum and maximum amount
specified therein. Similarly, the note under Rule 29 of Andhra Pradesh Leave
Rules, also permits the payment of Ex-gratia allowance to Government
Servants in Last Grade Service while on Extra Ordinary Leave for the
treatment of the above diseases. This is also equal to half of the pay subject to
the maximum specified therein. As and when the pay scales of the employees
are revised Government used to issue orders revising the pay limit of Non-
Gazetted Government Servants eligible for this and the minimum and
maximum limits, the latest being the order issued in G.O.Ms.No.234 Fin &
Plg (FW-FRI) Dept dated: 27-5-1994 basing on the Revised Scales of pay of
1986 and 1993. Subsequently the scales of pay of the employees have been
modified from 1-7-98 and again from 1-7-2003. Government did not issue
amendments to the above two rules changing the limits of pay
correspondingly presumably on the ground that there was no recommendation
of PRC to that effect. Since it is a question of amendment to the rules
incorporating the revised pay limits and the minimum and maximum amounts
of Ex-gratia allowance admissible, there was no need for a recommendation
by the PRCs. However, as this is a Welfare measure, the Commission
recommends the issue of orders by Government for the payment of Ex-
gratia allowance to the Non Gazetted Officers and Last Grade Servants
as and when the scales of employees are revised, raising the monetary
limits corresponding to the revised scales.
9. Paternity Leave:

10.21. In G.O.Ms.No.231 Fin (FR I) Department dt.16-09-05, orders

were issued permitting the grant of paternity leave on full pay to the married
 134

male Government employees for a period of 15 days. In Circular Memo

No.14601/371/FRI/2006,dt.24-06-2006 of Finance Department it was
clarified that the paternity leave has to be availed by the married male
Government employee with less than two surviving children from the date
his wife has delivered the baby.

10.22. As per the clarification issued by Government of India in

O.M.No.13018/2/98-Estt(L), Dt.16-07-1999 the employees of Government of
India can avail paternity leave either before 15 days or within a period of 6
months from the date of delivery.

10.23. The clarificatory instructions issued by the State Government in

its memo dt.24-06-2006 are not in accordance with the instructions issued by
Government of India in the matter of grant of Paternity leave. Generally State
Government is following the rules applicable to the employees of
Government of India in the matter of leave. The commission, therefore,
recommends to issue revised clarificatory instructions on the lines issued by
the Government of India in its O.M. Dt.16-07-1999 in so far it relates to the
grant of paternity leave.

10. Grant of Special Casual Leave to the Medical Officers working in

Government for attending to Examination Work:

10.24. In G.O.Ms.No.2492 Education Department, Dt.31-10-1969 read

with G.O.Ms.No.1165 Education Department, Dt.06-06-1970 orders were
issued to the effect that the staff working in Government colleges drafted for
the University Examination work such as invigilation, scrutiny, tabulation,
spot valuation etc. shall be permitted to avail 15 days special casual leave
without any limitation i.e. even exceeding 10 days at a time when they attend
to the work of University Examination. Apparently, the orders are applicable
in the cases of examination work of the universities within the state only. The
orders issued in G.O.Ms.No.1165, Education Department, Dt.06-06-1970
were extended to the staff working in the Colleges/Hospitals in Indian
Medicine and Homeopathy Department. (vide G.O.Rt.No.618 H.M & F.W(I-
2) Department, dt.12-04-1991). Thus the Doctors belonging to “AYUSH”
Department and are working in Government Colleges are now eligible for
special casual leave of 15 days if they attend to the Examination Work within
the state.

10.25. In G.O.Ms.No.106, H.M.&F.W.(A2) Department, Dt.10-04-02

the following orders were issued based on the demands of A.P. Government
Doctors Association (Modern Side) permitting. “The doctors in various
categories who go as Examiners to various Medical / Dental Colleges
outside the state to avail 15 days special casual leave in an academic
year”
 135

10.26. The A.P. Ayurvedic Medical Officers Association represented

to this commission to recommend to Government to permit them to avail
special casual leave of 15 days even in cases where they attend to
Examination Work outside the State on par with the Medical Officers of
Allopathic Wing. The Director, ‘Ayush’ Department also requested the
Government to issue orders extending the orders contained in G.O.Ms.No.106
H.M. & F.W.(A2) Department, Dt.10-04-2002 to the Doctors working in
Government Ayurvedic Medical Colleges in Andhra Pradesh State.

10.27. It is felt that the request of the Association is reasonable and

deserves consideration. The Commission, therefore, recommends to issue
comprehensive orders permitting the Doctors working in Government
Colleges under all streams i.e., Allopathic, Ayurvedic, Homeo & Unani
Wings, to avail special casual leave not exceeding 15 days, in an academic
year, for attending to the University Examination work either within the
State or outside the State. It is further recommended to specify in the
orders to grant special Casual Leave of 15 days even if the continuous
period of absence on this work exceeds 10 days at a time.

11. Child Adoption Leave:

10.28. As per Rule 43-B of the Leave Rules applicable to the

employees of Government of India, a female Government Servant with fewer
than two surviving children, on valid adoption of a child below the age of one
year may be granted Child Adoption Leave for a period of 135 days
immediately after the date of valid adoption provided that this facility shall
not be admissible in case she is already having children at the time of
adoption.

10.29. This issue has come to the notice of the Commission and we
have examined whether there is need to extend this facility. Adoption of
children is a matter of conscious choice and we feel that there is no need for
State to support it through extension of leave facility for this purpose. We,
therefore, do not find any merit in adopting the Government of India pattern
so far as leave for adoption is concerned.

12. Grant of Special casual leave for attending seminars and workshops:

10.30. The A.P. Government Doctors Association requested for the

grant of Special Casual Leave of 20 days to attend to conferences &
workshops in a calendar year, without stipulation of presenting a paper, while
continuing to give deputation in view of the regulation of Medical Council of
India stipulating recertification for renewal of registration with the Medical
Council of India based on the credit hours of attending to scientific sessions &
workshops.
 136

10.31. They are already eligible for the grant of special casual leave for
15 days for attending university examination work. Any further concession in
special casual leave will lead to absence of doctors in case of need. The
commission is therefore, not in favour of recommending this request.
 137

Index to Other Allowances

Page No.

1) Travelling Allowance 141

2) Transport Allowance 160

3) Concessional Bus Pass facility to N.G.Os. 161

4) Reimbursement of Tuition Fees in respect 161

of the Children of N.G.Os.

5) Funeral Charges of deceased Government employees. 163

6) Remuneration to the Drivers, Roneo Duplicating 164

Operators and Lift Operators for attending to
the official duties on holidays.

7) Special Compensatory Allowance 164

8) Uniform Allowance and Uniform Maintenance 168

Allowance

9) Risk Allowance 187

10) Conveyance Allowance to certain categories 199

11) Conveyance Allowance to Blind and 202

Physically handicapped employees

12) Conveyance charges to the staff of Protocol 202

Department.

13) Conveyance charges to the staff of Cultural 202

affairs Department.

14) E.S.I. Allowance 203

15) Ration Allowance 203

16) Night Duty Allowance 205

17) Emergency Health Care Allowance 207

 138

Page No.

18) P.G. Degree and P.G. Diploma Allowance 209

19) Non Private Practice Allowance 210

20) Academic Allowance 214

21) Tribal Allowance 215

22) a) Rural Allowance 216

b) Rural Allowance (To be discontinued) 217

23) Special Allowance to certain categories 218

24) Anti-Naxalite Squad Allowance 220

25) Double Lock Key Allowance 221

26) Computer Allowance 221

27) Clerical Allowance 222

28) N.G.G.Os Clinic Allowance 222

29) Leprosy Allowance 223

30) Slaughter House Allowance 223

31) Supervisory Allowance 224

32) Sub-Jail Allowance 224

33) Office Allowance and Maintenance Allowance 224

34) Reader’s Allowance 225

35) Blood Bank Allowance 226

36) Difficult Sanitation Service Allowance 226

37) Theatre Allowance 226

38) Machine Allowance 227

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Page No.

39) Library Allowance 227

40) Special Allowance to the staff working in 227

Sub-ordinate Courts

41) Incentive Allowance 228

42) Scout Allowance 228

43) Intensive Care Unit Allowance 229

44) Delhi Allowance / Special Compensatory 229

Allowance to the Staff of A.P. Bhavan New Delhi.

45) Construction Allowance 231

46) Incentive to the Ministerial Staff of C.I.D. 232

branch of Police Department

47) Supply of Dress, Shoes to the Drivers of 232

Government Vehicles.

48) Ex-gratia/Compensation in the case of 233

death/disablements of the employee.

49) Staggered working hours for women employees. 234

 140

CHAPTER – XI
Other Allowances

11.01 FR. 44 empowers the State Government to grant compensatory

allowances to any Government servant under its control subject to the general
rule that the amount of compensatory allowance is not, on the whole, a source
of profit to the recipient. The same rule permits the State Government to
make rules prescribing the amounts and the conditions under which the
allowances may be drawn.

11.02. We have, in a separate Chapter dealt with major allowances like

DA, HRA, Addl. HRA and CCA which are meant to compensate the
employee for price rise and for incurring additional costs due to the location
of his place of work. While the first two allowances are available to all
employees the remaining two are related to the nature of his duties and the
place of work.

11.03. Over a period of time, Government sanctioned several

allowances to the different categories of employees. The grant of a particular
allowance to one category of employees lead to the demand from other
categories to extend the same to them also. In the case of Risk allowance,
several associations of employees put forth the demand that the duties of their
members are risk prone and therefore Risk allowance has to be granted. There
are requests from several employees’ Associations to grant Fixed Travelling
Allowance/ Conveyance Allowance on the plea that they are not getting
regular T.A. & D.A, due to budgetary constraints.

11.04. The other allowances which are nearly 46 in number can

broadly be classified into 6 – 7 groups. Allowances like Uniform allowance,
Dhobi and Kit maintenance allowance are related to certain requirements
associated with the need for distinguishing them from others based on the jobs
they perform. Many Government servants are required to perform tours and
are also transferred from one work place to another. Travel and Daily
allowances and transfer related allowances are meant to meet expenses on
account of these requirements. Risk allowance is expected to partly
compensate the employee for the inconvenience caused due to exposure to
risk which does not affect him immediately but may harm him over a long
period of exposure. Project allowance, Tribal allowance, Rural allowance
etc., are location specific and meant to compensate the person for the hardship
associated with stay in places where they are deprived of access to certain
basic facilities. Leave Travel Concession, Concessional Bus Passes, Tuition
fee reimbursement are in the nature of concessions extended to either all
sections or sometimes to only a few sections of the employees. There are also
 141

a few allowances which are extended to certain sections of employees to

persuade them to work in certain areas where their services are urgently
required. There are certain allowances which are paid not for services
rendered but for preventing them from doing something, as in the case NPPA.

11.05. Several requests have been received from various categories of

personnel for sanctioning fresh allowances and also to increase the rates of
existing allowances. Any allowance once sanctioned has the tendency to
remain permanent.

11.06. This Commission tried to review and rationalize the various

allowances. But it could do to some extent only. Therefore, the
Commission feels that it is desirable to have a detailed study of all the
allowances objectively and decide the need for their continuance or
otherwise. The Pay Revision Commission is not having the necessary
mechanism or the time to do that exercise and the commission, therefore,
recommends to entrust the above exercise to a separate agency like
Centre for Good Governance or any outside specialised agency as
recommended by PRC 2005.

11.07. The existing rates of allowances were recommended to be

increased wherever necessary, in the following paras. The Commission
excluded certain categories and included certain new categories from the lists
of various types of allowances. The Commission did not find any merit in
respect of the claims by other categories of employees for extension of the
allowances / sanctioning of new allowances made by several associations and
if they are not specifically included they should be deemed to have been
rejected.

11.08. The Commission further recommends that no allowance is

to be paid to any category over and above what is recommended now.
However, if in any case there is a need to sanction any of these allowances
or a set of new allowances the concerned administrative departments
have to examine such cases and the Finance Department alone may be
authorized to issue orders. We have come across instances where the
orders issued by individual Departments have been lost sight of by the
previous commission. Centralisation of the power to issue sanction orders
only in Finance Department would ensure that they come up for review
before every commission.

1. Travelling Allowance:

11.09. Travelling Allowance is an allowance given to Government

employees to defray the expenditure incurred while on tour to perform official
duties. The rules governing such payment should, in the opinion of the
 142

commission, be less cumbersome and capable of easy interpretation. It is true

that it is not always possible to provide for all types of situations in the rules.
That is why certain generalisations are bound to arise. Since the intention of
the Government in permitting an employee to go on tour is to get official
work done it should be ensured that the employee is paid adequately to defray
reasonable expenditure while away from his headquarters. It should also be
the endeavour of the Government to see that the employee does not have to
pay from his pocket while on such tours. The Commission, considered the
revision of rates of T.A. and related matters with these views as a back-drop
and made the following recommendations.
a) Grades of Employees

11.10. All the employees are grouped into three grades depending on
the scale of pay in which they are drawing. The existing gradation is as
follows:

1. Grade-I – Employees drawing pay in the scale of pay of

Rs.14600-29250 and above.

2. Grade-II – Employees drawing pay in the scale of pay of Rs.7770-

18575 and upto and inclusive of Rs.13390-28500.

3. Grade-III – Rest of the employees.

11.11. The existing classification of the employees into three grades

is quite reasonable and needs no revision. Therefore, while incorporating
the corresponding scales in the proposed revised scales the three grades
may be continued.

11.12. The grade to which an employee belongs has to be decided

with reference to the scale of pay attached to the post but not with
reference to the higher scale of pay being drawn by any individual under
Automatic Advancement Scheme.

b) Entitlement to travel by Air

11.13. According to the present rules all officers drawing pay in the
scale of pay of Rs.19675-30765 and above and All India Service Officers are
eligible to travel by air in connection with their official tours. All Heads of
Departments if their scale of pay is less than the above scale and Deputy
Secretaries to Govt. are also permitted to travel by air after obtaining prior
permission of the Secretary to Govt. concerned.

11.14. The Transport Officers Association and other associations

requested to link the permission to travel by air to the basic pay of an
employee but not to the scale of pay.
 143

11.15. In fact, till the PRC 2005 the air travel is linked to basic pay.
Govt. issued orders changing the pattern to scale of pay instead of basic pay
keeping in view the recommendations of the PRC 2005. The air travel is
expected to be performed by a certain level of officers. If the basic pay is to
be adopted as criterion for purpose of air travel even the junior level officers
may have to be allowed to travel by air if they happen to reach a certain level
of basic pay due to afflux of time. Therefore, the commission recommends
that only the scale of pay should be the criterion for purpose of air travel.
As such the commission recommends that all officers drawing pay in the
corresponding revised scale of pay to the existing scale of pay of
Rs.19675-30765 and above may be permitted to travel by air in
connection with their official work and the All India Service Officers and
all Heads of Departments irrespective of their scale of pay may also be
allowed to travel by Air in connection with their official work. The
Deputy Secretaries to Govt. are now permitted to travel by Air on official
work with the prior permission of the secretary to Government. The
Commission, further recommends that Secretaries to Government may
permit their subordinate officers upto the level of Deputy Secretary to
travel by Air on official work to any place outside the state keeping in
view the exigencies of work. Similarly Heads of Departments may permit
officers not below the rank of Deputy Directors to travel by air outside
the State if the exigencies of work warrant such a relaxation.

11.16. The commission also recommends that travel by air within the
State should be prohibited except in certain special circumstances warranting
the immediate presence of officers at the out station.

11.17. The Commission further recommends that all the All India
Service Officers who are in PB4 with Grade pay of Rs.12,000/- and those
in HAG+ and the State Government Officers drawing pay in the
corresponding revised scale of pay to the existing scale of pay of
Rs.25600-30675 (RPS 2005) be allowed to travel by Business/Club class
while the other Officers be allowed to travel by Economy class in
Aeroplanes.

11.18. The existing provision of eligibility to travel in A.C. I-class by

train by such of the employees who are eligible to travel by air, may continue.

c) Entitlement to travel by train

11.19. At present the employees drawing pay in the scale of pay of

Rs.7770-18575 and above are eligible to travel by train in I-class as per rule
27 (1) (a) of T.A. rules. All other employees are eligible to travel by second
class. However a concession was allowed to the officers who are eligible to
travel in I-class by train, to travel by A.C. II tier/ A.C. III tier/ A.C. chair car
 144

while on official tour as per note (2) to the above rule. Similarly, the
employees who are eligible to travel by second class are also permitted to
travel by sleeper class while on tour as per sub rule (2) of the above rule.

11.20. Several requests have been received for inclusion of some more
categories also for eligibility to travel by I-class by train. The present norms
linked to the scale of pay are rational and they may be continued. No changes
are recommended. The eligibility to travel by I-class will be to the
corresponding scale being recommended by this commission to the
existing scale of Rs.7770-18575.

11.21. It is also pertinent to state here that the pay scales assigned
under Automatic Advancement Scheme shall not be taken into account for the
purpose of deciding the eligibility of class of travel. Only the pay scales
attached to the posts shall be taken into account for deciding the eligibility of
class in which the officers are entitled to travel in train. At present the
railways have dispensed with I-class in several trains. It is therefore
recommended that wherever I-class is available in the train the employees
who are eligible to travel by I-class may travel either in I-class or in A.C. II
tier/ A.C. III tier/ A.C. Chair Car. If there is no I-class in the train they may
travel in A.C. II tier/ A.C. III tier/ A.C. Chair Car. The employees who are
eligible to travel by II Class may also travel by sleeper class. These
eligibilities are applicable in the case of journeys to be performed either on
tour or on transfer or in the case of journeys connected with L.T.C.

11.22. There are also requests to include the extra charges incurred on
purchase of tickets under ‘Tatkal Scheme’ and the service charges incurred in
connection with online booking of tickets. Under Tatkal Scheme the tickets
are issued from starting point to terminal point in addition to Tatkal charges
which will be an extra expenditure to the exchequer especially in cases where
the employee has to perform the journey to any intermediary place other than
the terminal point. Further, the claims of Rail fare under Tatkal Scheme are
not susceptible of verification. Therefore, the commission is not inclined to
recommend for allowing the Tatkal charges except in cases of journeys
between the originating station and the terminating station, that too in
cases where there is no sufficient time for the employee to purchase the
tickets in advance which should be certified by the controlling officer.

11.23. In the case of service charges for online booking the charges
will be incurred for the sake of convenience of the employee. However, such
cases may not be many and the amount actually spent is also not high.
Therefore, the Commission recommends reimbursement of the service
charges wherever they were actually incurred and on production of proof
of incurring of the expenses.
 145

11.24. Railways have introduced several types of express trains viz.

Super Fast, Sampark Kranti, Rajadhani, Jana Sathabdi, Garib Rath, etc. Travel
by these trains, except in the case of Garib Rath is costlier than the travel by
ordinary express trains. It is therefore necessary to permit the employees to
travel by those expresses also. Accordingly the Commission recommends
to permit the employees to travel by all types of express trains in
connection with their journeys on official tour/ transfer/ L.T.C.

d) Travel by A.C. buses of A.P.S.R.T.C.

11.25. When a Govt. employee performs a journey by a regular public

motor service between places not connected by railway, but connected by
regular public motor service, he is entitled for the actual bus fare paid.

Note:- The journey may be made either by ordinary, express, semi-

luxury, deluxe or super deluxe buses, but not by Air
conditioned bus (Vide rule 23 (2) of A.P. T.A. rules).

11.26. According to rule 23 (1) of the T.A. rules, if an employee

performs a journey by a regular public motor service between two places
connected by rail, he is entitled to either the actual bus fare paid or the railway
fare of the entitled class whichever is less. By virtue of this rule the
employees are at liberty to perform journeys by air conditioned buses also
since the claim has to be restricted to the actual railway fare of the entitled
class.

11.27. But in cases of journeys between places not connected by

railway but connected only by road the employees have to necessarily
perform journey by bus only. Then the restriction of travelling by air
conditioned bus arises as per the restriction contained in note to rule 23 (2) of
T.A. rules referred to above.

11.28. The employees’ associations have made a fervent appeal to

permit all the Govt. employees, who are eligible to travel by air/ A.C. I Class/
A.C. II Tier/ A.C. III Tier/ A.C. chair car, to travel by A.C. buses of
A.P.S.R.T.C. also for their journeys between the places not connected by rail
but connected by road. As of now, they cannot travel by A.C. Buses, thought
for train travel they are eligible for A.C. Class. Hence the request.

11.29. The Commission feels that there is need to give choice to the
employees to travel by train or by road. It is reasonable to allow the
employees belonging to Grade-I of Annexure-I of T.A. rules, to travel by
A.C. buses of A.P.S.R.T.C. while on tour. The Commission accordingly
recommends that the employees belonging to Grade-I of Annexure-I of
T.A. rules may be permitted to travel by A.C. buses of A.P.S.R.T.C. while
on tour, irrespective of whether the place is connected by rail or not.
 146

Similarly the employees belonging to Grade II and Grade III may be

permitted to travel by A.P.S.R.T.C. buses of any type, except by
A.C.Buses, between the places connected by train also and claim the
actual Bus charges paid for. It should also be made clear in the orders that
the claims for journeys by private buses or hired taxis will not be entertained.

e) Mileage Allowance

11.30. When a journey between the places not connected either by

railway or by a regular public motor service, is performed the employees are
eligible for mileage allowance at the rates indicated below provided the place
visited is situated outside a radius of 8 k.m. from headquarters or from one
camp place to another camp place.

Grade – I Rs.5/- per k.m.

Grade – II Rs.3.50/- per k.m.
Grade – III Rs.3/- per k.m.

11.31. In view of the increase in the cost of transport the Commission

recommends the following revised rates of mileage allowance

Grade Revised rate recommended

Grade-I Rs.6/- per K.M.

Grade-II Rs.4.50 per K.M.
Grade-III Rs.4/- per K.M.

f) Officers eligible to use their own conveyances while on tour

11.32. As per rule 24 of A.P. Civil Services (T.A.) Rules 1996, the
employees who are entitled to maintain and use motor car, motor cycle/
scooter as indicated in Annexure-IV of the rules, may perform the journeys,
while on tour, in their own motor car, motor cycle/ scooter as the case may be
between the places connected by train/ road provided that the distance
travelled exceeds 8 K.M. As per Annexure - IV of the T.A. Rules the officers
 147

who are authorized to maintain their own conveyances is as shown below.

Category Officers Nature of Conveyance

Officers who are drawing

pay in the scale of Pay of
(1) Rs.3880-8140 and above Motor Car
in A.P. Revised Pay
Scales, 1993

Officers who are drawing

pay in the scale of Pay of
Rs.2600-5580 and above
Motor Cycle/
(2) but below the scale of Pay
Scooter
of Rs.3880-8140 in the
A.P. Revised Pay Scales,
1993

11.33. The scales of pay of employees were revised in 1999 and again
in 2005 and further modified by the One Man Commission 2006. But neither
executive instructions nor amendments were issued to the scales of pay
contained in the Annexure-IV replacing the scales of pay as and when the
scales were revised leading to confusion to ascertain the level of officers who
are expected to use and maintain motor car, motor cycle/ scooter unless
individuals/ departments themselves replace the scales after every revision.

11.34. The Commission therefore recommends that as and when

the scales are revised Govt. may issue amendment simultaneously to
annexure-IV of the T.A. rules incorporating the revised scales, to avoid
confusion in the departments.

g) Mileage Allowance for using own conveyances

11.35. Annexure-IV of the A.P. C.S. (T.A.) Rules, 1996, contains the
level of officers who are eligible to maintain and use their own conveyances
i.e. Motor Car, Motor Cycle/ Scooter while on tour. If they actually use their
own Conveyances while on tour they are eligible for the payment of Mileage
allowance at the following rates.

1. Motor Car --- Rs.10/- per k.m.

2. Motor Cycle/ Scooter --- Rs. 3/- per k.m.

(Vide rule 24 (2) read with G.O.Ms.No.336 Fin. (T.A.) Dept. Dt:29-10-2005).
 148

11.36. In G.O.Ms.No.205 Finance (T.A.) Dept. Dt: 21-7-2008, orders

were issued increasing the rate of mileage from Rs.5/- per k.m. to Rs.10/- per
k.m. for petrol driven vehicles and from Rs.3/- per k.m. to Rs.6/- per k.m. for
diesel driven vehicles to the Hon'ble Ministers and their equivalent ranks and
also to Grade-I Officers. Apparently these orders were issued keeping in view
the rates of mileage allowance applicable to Hon’ble Ministers contained in
part-II of Annexure-V of A.P. Civil Services (T.A.) rule 1996. As stated
above the Grade-I Officers are already eligible for the mileage allowance at
Rs.10/- per k.m. if they use their own motor car while on tour. There is no
variation in the rate of mileage between the petrol driven vehicles or diesel
driven vehicles as per the orders issued in G.O.Ms.No.336 Finance (TA)
Dept. Dt: 29-10-2005. The distinction in the rates of mileage between petrol
driven and diesel driven vehicles is justified as the market has witnessed
release of a large number of diesel driven cars. We find that there is no
increase in the rates of Petrol or Diesel between 2005 and now (Sept. 2009).
We, therefore, feel that the only increase that is warranted is due to increase in
other Vehicle maintenance costs. We, therefore, suggest increase to Rs.11/-
per k.m for Petrol driven vehicles and Rs.7/- per km in the case of diesel
driven vehicles. As regards, motor cycle / scooter the increase would be
from Rs.3/- per km to Rs.4/- per km..

11.37. The officer using his own motor car should furnish a certificate
whether he used Petrol driven car or Diesel driven car, along with the claim
for mileage allowance.

h) Daily Allowance

11.38. The existing rates of Daily Allowance are as follows:

---------------------------------------------------------------------------------------------
Grade D.A. for tours D.A. for tours to
Within the State any place Outside the State
----------------------------------------------------------------------------------------------
Grade-I Rs.200/- Rs.250/-
Grade-II Rs.125/- Rs.150/-
Grade-III Rs.100/- Rs.125/-
---------------------------------------------------------------------------------------------

11.39. Requests have been made to increase the Daily Allowance

substantially to meet the increase in cost of stay while on tour. The
Commission accepts the need for upward revision of this allowance. Keeping
in view the continuing rise in prices, the Commission recommends the
 149

following rates:
---------------------------------------------------------------------------------------------
Grade D.A. for tours D.A. for tours to
Within the State any place Outside the State
----------------------------------------------------------------------------------------------
Grade-I Rs.300/- Rs.400/-
Grade-II Rs.200/- Rs.300/-
Grade-III Rs.150/- Rs.200/-

i) Reimbursement of Lodging Charges

A. For places with in the State:

11.40. Government servants are normally expected to stay in

Government accommodation while on tour wherever it is available. In case,
the employees could not secure accommodation in Government Travellers
bungalows or Govt. Guest houses, they are eligible for the reimbursement of
lodging charges in certain places. At present the Government servants visiting
Visakhapatnam, Vijayawada, Tirupati, Twin cities (Hyderabad &
Secunderabad), Warangal, Guntur and Kurnool on official duties are entitled
for reimbursement of lodging charges actually spent by them subject to the
maximum amount shown below against each grade:

a) Grade-I ... Rs.250/-

b) Grade-II ... Rs.200/-
c) Grade-III ... Rs.100/-

B. For places outside the State:

11.41. At present, the Government servants visiting places outside the

State on official duty are eligible for the reimbursement of lodging charges
where ever Government accommodation is not available subject to the
maximum limits indicated against each grade:
-------------------------------------------------------------------------------------
Grade A Class B Class Other Classes
-------------------------------------------------------------------------------------
a) Grade-I Rs.300/- Rs.240/- Rs.210/-
b) Grade-II Rs.210/- Rs.180/- Rs.150/-
c) Grade-III Rs.120/- Rs.90/- Rs.75/-
-------------------------------------------------------------------------------------
The classification of cities of Government of India is to be followed for
this purpose.
 150

11.42. Further 75% increase in reimbursement of lodging charges is

now permitted in respect of their stay at Delhi, Mumbai, Chennai, Benguluru
and Kolkata.

11.43. Number of representations have been received for increasing

this substantially to meet the realistic lodging charges prevailing at various
places.

11.44. The lodging charges have to be incurred by an employee

wherever there is no possibility of securing Govt. accommodation for his/her
stay. It is therefore recommended that the lodging charges actually spent by
them in all the Municipal Corporations either within the State or outside
the state be reimbursed at the rates not exceeding the maximum amount
indicated against each grade as shown below.
-------------------------------------------------------------------------------------
Grade Amount
-------------------------------------------------------------------------------------

a) Grade-I Rs.500/-
b) Grade-II Rs.300/-
c) Grade-III Rs.200/-
-------------------------------------------------------------------------------------

(a) The maximum lodging charges admissible for reimbursement at

Hyderabad / Secunderabad be increased by 50% over the above rates.

(b) The maximum lodging charges admissible for reimbursement at

Delhi, Mumbai, Chennai, Kolkota, Benguluru be increased by 75% over the
rates mentioned in para 5.

7. Keeping in view the above recommendations, the maximum lodging

charges that can be reimbursed at various places are as shown below:
Maximum amount of reimbursement of
Lodging charges at various places
At Municipal Corporations At Delhi,
either within the state or Mumbai,
At Hyderabad/
Grades outside the state except those Chennai,
Secunberabad
cities mentioned in columns Kolkota,
(3) & (4) Benguluru
(1) (2) (3) (4)
I 500 750 875
II 300 450 525
III 200 300 350
 151

8. The PRC 2005 has made the following suggestions.

i. In case of visits to Delhi, arrangements may be made for booking

outside accommodation through A.P Bhavan to avoid possible
wastage of money.

ii. For allowing full reimbursement of lodging charges, where

suitable Government accommodation is not available, detailed
guidelines need to be worked out. It is suggested that a nodal
agency like A.P Tourism Development Corporation may identify
lodges in various cities for this purpose and enter into a rate
contract. The rates thus approved may be allowed for full
reimbursement. Graded Classes of accommodation may be
permitted for various grades of Government Servants.

9. It is not known whether any action has been taken on the above
recommendations. If action is not taken so far, this commission also
recommends to take early action on the above recommendation.

j) Conveyance charges within the State

11.44. At present, the employees working in twin cities are eligible for
the payment of conveyance charges in connection with the journeys
performed by them within the twin cities on official work. The employees are
normally expected to perform journey by public conveyance i.e. A.P.S.R.T.C.
buses. When a journey by public conveyance is not possible within the twin
cities of Hyderabad and Secunderabad the employees are permitted to claim
actual charges incurred at the rate of Rs.1/- per k.m. subject to the limit of
Rs.15/- each way.

11.45. In view of the increase in the cost of living the Commission

recommends to increase the actual charges to Rs.1.50/- per k.m. subject to a
maximum of Rs.25/- each way.

11.46. In the case of journeys by the Govt. employees to go to A.P.

High Court, A.P. A.T. and other Courts and also to the Govt. Pleaders’
Offices the maximum amount permissible at present is Rs.40/- per each trip
subject to a ceiling of 20 trips per month or to a maximum of Rs.800/- per
month (vide G.O.Ms.No.269 Finance (T.A.) Dept. Dt: 15-10-2005).

11.47. The Commission recommends to increase the maximum

amount of Rs.40/- per each trip to Rs.50/- per each trip subject to the
ceiling of 20 trips per month or to a maximum amount of Rs.1000/- p.m.
 152

k) Conveyance Charges outside the State

(a) Taxi/ Auto charges incurred by the Govt. employees while on

tour to any place outside the State, from the arrival point to the
place of stay and ‘vice-versa’ are reimbursable to them subject
to production of actual vouchers or a certificate of payment
(vide rule 40 (6) of T.A. rules).

(b) The Govt. employees are also eligible to claim actual Taxi or
Auto fare, subject to a maximum of Rs.200/- per day for visiting
the offices of Govt. of India and Ministries or any other office,
situated at the places outside the State, while on tour. In such
cases they have to furnish a certificate to the effect that Govt.
vehicle was not provided to them (vide rule 40 (7) of T.A. rules
read with G.O.Ms.No.336 Finance (T.A.) Dept. Dt: 29-10-05).

11.48. In view of the increase in the cost of transport, the Commission

recommends to increase the maximum ceiling of Rs.200/- referred to in
sub para (b) above to Rs.400/- per day while retaining the provisions
contained in rule 40 (6) of T.A. rules referred to in sub para (a) above.

l) Conveyance charges to the Court Masters and Personal

Secretaries to the Hon’ble Judges of A.P. High Court and A.P.
Administrative Tribunal

11.49. As per the orders issued in G.O.Ms.No.73 Finance (T.A.) Dept.

Dt: 2-4-2007, the Court Masters and Personal Secretaries to the Hon’ble
Judges of High Court are allowed Conveyance charges at Rs.75/- per trip with
an outer limit of Rs.3000/- p.m. when they visit the residences of Hon’ble
Judges on official work. These orders were also extended to the Court
Masters/ Personal Secretaries to the Hon’ble Chairman/ Vice Chairman and
members of A.P.A.T. in G.O.Ms.No.17 Finance (T.A.) Dept. Dt: 21-1-2008.

11.50. It is ascertained that there was an increase of Auto charges by

20% from June 2008. As such the commission recommends to increase the
conveyance charges to Rs.90/- per trip with an outer limit of Rs.3600/-
p.m.
m) Charges for the transport of personal effects
 153

11.51. As per rule 58 of the T.A. rules the Govt. employees may
transport their personal effects upto the following maximum limits
consequent on transfer involving change of station.

Maximum weight that can be

Grade of the Govt. employee
transported
Grade-I 5000 Kilograms
Grade-II 4000 Kilograms
Grade-III 3000 Kilograms

11.52. The Commission recommends to continue the limits of

maximum weight as shown above.

11.53. Normally the employees are expected to transport the personal

effects by goods train. However, the employees are permitted to transport the
personal effects by a public transport company or even by a private lorry in
which case the actual cost of transport of personal effects has to be limited to
the amount admissible had the personal effects been transported by goods
train.
11.54. Now, the railways are not booking the personal effects for being
transported by goods train. Further, the railways are refusing to furnish
information regarding the rate of charge for the transport of personal effects
by goods train. Therefore, it is impossible for the authorities to restrict the
actual cost of transport by private lorry to that of the goods fare. In view of
that the employees associations have suggested payment of transport charges
at Rs.0.60/- per k.g. per k.m. The rate suggested by them is abnormally high.
The Government of India in O.M.No.19030/3/2008.E.IV, Dt.23-9-2008 of the
Ministry of Finance issued orders fixing the rate of mileage for the transport
of personal effects by its employees at Rs.0.003 per kg/per k.m. The
commission recommends to adopt the same rates to the employees of State
Government also. At the above rates the mileage allowance would be
admissible as follows:

Maximum Weight
Grade Rate
permissible
I. 5000 Kgs @ Rs.0.003 per kg/per km,
subject to a maximum of Rs.15/-
per k.m.
II. 4000 Kgs @ Rs.0.003 per kg/per km,
subject to a maximum of Rs.12/-
per k.m.
III. 3000 Kgs @ Rs.0.003 per kg/per km,
subject to a maximum of Rs.9/-
per k.m.
 154

11.55. The commission therefore recommends to allow the actual

charges spent by the employee for the transport of personal effects
subject to the maximum amount admissible at the above rates as per the
Grade to which the employee belongs. These charges may be allowed on
the above principle irrespective of the mode of transport of personal
effects between the two places either fully connected by rail, or fully not
connected by rail but fully connected by road, or partly connected by rail
and partly connected by road.

n) Packing/ loading and unloading/ unpacking charges

11.56. In addition to the payment of charges towards the cost of

transport of personal effects, Govt. employees are allowed actual charges
towards packing/ loading and unloading/ unpacking of personal effects
subject to the maximum limits indicated in the table below. The Commission
recommends the revised rates against each grade in the table in view of
general increase of charges.

Transfer within the State Transfer outside the State

Grade Transfer within the Transfer outside the
Zone Zone
Existing Revised Existing Revised Existing Revised
Rs. Rs. Rs. Rs. Rs. Rs.
Grade-I 250 500 500 1000 3500 5000
(at each (at each (at each (at each [Rs.5400 for [Rs.7000
end) end) end) end) those in the for those in
scale pay of the scale
Rs.16925- pay of
30765 & Rs.29200 –
above] 53060 &
above]
Grade-II 150 300 300 600 3000 4000
(at each (at each (at each (at each
end) end) end) end)
Grade-III 100 200 200 400 2000 3000
(at each (at each (at each (at each
end) end) end) end)

11.57. The above charges are to be allowed in addition to the cost of

transport of personal effects.

o) Disturbance Allowance or Lumpsum Grant on transfer

11.58. In the case of transfer of an employee from any place within the
State to Delhi and any other place outside the State and also in the case of
transfer from Delhi and places outside the State to any place within the State,
 155

the employees are eligible at present for the payment of this allowance at the
following rates for each such transfer.

(a) Grade-I : Rs.7500/- (However, employees drawing pay in the

scale of pay of Rs.16925-30765 and above,
shall be allowed Rs.8500/- for carrying
personal effects by road)
(b) Grade-II : Rs.5000/-
(c) Grade-III: Rs.2500/-

11.59. Taking into consideration the increase in prices, the

Commission recommends the following revised amounts:

(a) Grade-I : Rs.10000/- (However, employees drawing pay in the

scale of pay of Rs.29200 – 53060 and above,
shall be allowed Rs.12000/- for carrying
personal effects by road)

(b) Grade-II : Rs.7500/-

(c) Grade-III : Rs.5000/-

p) Applicability of T.A. Rules to the All India Service Officers serving

the affairs of the State

11.59. As per notes (i) & (ii) under Annexure-I of A.P. Civil Service
(Travelling Allowance) Rules, 1996, officers of All India Services drawing
pay in Junior time scale of pay shall be treated as Grade-II officers while
other All India Service officers shall be treated as Grade-I officers for
purposes of regulation of D.A., reimbursement of lodging charges and
mileage allowance. For purposes of Air travel all officers, including All India
Services, drawing pay in the scale of pay for Rs.19675-30765 are eligible to
travel by Air while on tour as per rule 33 of A.P.T.A. Rules read with
G.O.Ms.No.46 Fin (T.A.) Dept. Dt: 2-3-07. For purposes of travel by train, no
mention was made about All India Services officers in rule 27 of A.P.C.S.
(T.A.) Rules, wherein it was stated that all Govt. servants drawing pay in
Revised scale of pay of Rs.7770-18575 and above are entitled to travel by I-
Class/ AC-II Tier/ A.C.-III Tier/ A.C. Chair Car.

11.60. The pay and allowances and grant of leave and payment of
leave salary, pensionery benefits to the All India Service Officers are being
regulated in accordance with the rules of Govt. of India. Even in the case of
grant of House Building Advance, to All India Service officers, this
Commission, elsewhere recommended that the All India Service officers may
be allowed an option to choose the rules by which they would like to be
governed i.e. either State Govt. rules or rules of Govt. of India whichever is
 156

advantageous. Similarly, the Commission feels that the All India Service
officers may be given an option to choose the rules by which they would like
to be governed for purposes of regulating their Traveling Allowance on tour/
transfer/ L.T.C. Accordingly, the Commission recommends that the All
India Service officers serving the affairs of the State may be allowed an
option to choose either the rules of Govt. of India or the State Govt. rules
for regulating their tour T.A., Transfer T.A. and T.A. for L.T.C.

q) Fixed Traveling Allowance

11.61. Government have identified certain categories of posts which

require regular touring, for a minimum period of 15/20 days in a month for
sanction of Fixed Traveling Allowance. All those categories are listed in
Annexure II of the A.P.C.S (T.A.) Rules, 1996.

The existing rates of Fixed Traveling Allowance are as follows:

Rates of Fixed Traveling Allowance to be

Minimum allowed if the jurisdiction is
Classi- Details number of Within Within three Revenue
fication days required the Mandals but Division
to be toured in Mandal in one
a month Revenue
Division
Officers 15 days 400 450 500
I on a pay
scale 20 days 500 550 600
upto
Rs.5200-
11715
Officers 15 days 450 500 550
II on a pay
scale of
Rs.5470- 20 days 550 600 650
12385
and
above

11.62. Requests have been made by innumerable associations that they

may be sanctioned F.T.A. instead of regular T.A. & D.A. solely on the ground
that due to budget constraint they are not able to get their T.A. bills approved.

11.63. Fixed Traveling allowance is admissible only to such of the

categories of posts which require regular touring for a minimum period in a
month within the jurisdiction. It is not correct to extend the same to others to
overcome budgetary restrictions. The earlier PRCs also observed that it is not
desirable to extend F.T.A. to any more categories since it would ultimately
result in loss of budgetary control on this item of expenditure. PRC 1999
 157

further observed that it is not in the interests of employees themselves as

some of them, depending on the exigencies of work may have to tour more
extensively in some months. On such occasions Fixed Traveling Allowance
will be less than the amount of T.A. & D.A. for which they are entitled to as
per rules. PRC 2005 while endorsing the same view suggested to Govt.
Departments to identify the categories who, in their view should be allowed
Fixed Traveling Allowance in place of regular T.A. & D.A. and that such
cases could be examined by the Govt. on merits.

11.64. It appears that no exercise has been done in this direction by the
Govt. Departments. The Commission, therefore, recommends that the
Annexure-II to the A.P.C.S (T.A.) Rules, 1996 should be reviewed and
suitable corrections be incorporated either adding new posts or deleting
existing posts depending on the changed circumstances.

11.65. As regards the amount of Fixed Traveling Allowance, the

revised rates recommended are as shown below, keeping in view the general
increase in the cost of transport and other charges.
Minimum Rates of Fixed Traveling Allowance
number of to be allowed if the jurisdiction is
Classifi- Details days required Within Within three Revenue
cation to be toured the Mandals but in Division
in a month Mandal one Revenue
Division
Officers on a 15 days 450 550 650
I pay scale upto
and inclusive of
Rs.9200-27000 20 days 550 650 750
Officers on a 15 days 500 600 700
II pay scale of
Rs.9460-27700 20 days 600 700 800
and above

11.66. If the jurisdiction is more than a Revenue division regular T.A.,

D.A. and mileage allowance as per rules has to be allowed.

r) Leave Travel Concession

11.67. At present, the employees are eligible to avail leave travel

concession once in a block of four consecutive calendar years, along with
their family members. Out of the four years, this concession has to be availed
to go to “Home Town” during the first block of two years. During the second
block of two years the employees can avail this concession to visit any place
with in the State (including Home Town). During the availment of this
concession, the journeys have to be performed by train if the places are
connected by train. However, they may also perform the journey by
A.P.S.R.T.C. buses between the two places connected by train, in which case,
 158

the claim is to be restricted to either the actual expenditure incurred or to the

amount admissible had the journey been performed by train, whichever is
less. In cases where the places are not connected by train but are connected by
road only, the journeys have to be performed only by A.P.S.R.T.C. buses. The
entitlement of class of travel/ different kinds of busses, shall be in accordance
with the entitlements in the case of journeys on official tour. If the journeys
are performed by air, the claim shall be restricted to what is admissible had
the journey been made by rail or bus as the case may be. Travel by private
buses, taxis, etc. is prohibited. However, travel by A.P. Tourism development
corporation buses is allowed. In support of the actual charges incurred by the
employee, while availing the L.T.C., the used original Air/ Rail/ Bus tickets
have to be enclosed to the T.A. claim.

11.68. The term “Family” for this purpose shall be the same as
admissible in connection with the transfer of the Govt. employee with the
following exceptions.

i. The parents of Gazetted Officers shall not be treated as family

members.
ii. The parents of Non - Gazetted Officers shall not be treated as
dependents, if either of them is a pensioner (including family
pensioner).
iii. The children born on or after 1-4-1996, will not be treated as
members of the family, if the number of children born prior to 1-4-
1996 were two or more for whom the claim is made.

Note: The parents of married female Non-Gazetted Govt. employees will be

treated as members of family provided they are dependent on them.

11.69. Several employees associations have requested to pay lumpsum

amount towards leave travel concession. They have also requested to permit
them to avail the concession to go outside the State, but with in India once in
the entire service. They have further suggested to arrange to issue warrants
making them eligible to travel by Trains/ A.P.S.R.T.C. buses without payment
of the amount.

11.70. Similar requests were placed before the earlier PRCs also. PRC
1993, PRC 1999 and PRC 2005 have unanimously opined that payment of
lumpsum amount towards L.T.C. is not considered since the essential point in
L.T.C. is extension of the facility of actual travel to different places with
Government meeting the travel cost but not a cash allowance. It was also
observed that if cash is paid in lieu of claim, it would defeat the very purpose
of the scheme which enables the employees to visit Home Town/ any place
within the State. They have also suggested to work out a fool proof system of
 159

reimbursement of the travel expenses incurred by the employees since the

railways are not agreeing for issuing warrants.

11.71. As already observed by the earlier PRCs, this is a concession

allowed to the employees to enable them to claim the charges actually
incurred by them, along with their family members, in connection with their
journeys to visit their Home Towns/ any place within the State. If a lumpsum
amount is paid to the employees it would amount to grant of one more
allowance amongst the list of allowances in place now. This Commission is
therefore not inclined to recommend the payment of any lumpsum amount on
this account.

11.72. Regarding the other request to permit the employees to visit any
place outside the State, but within the country once in the entire service, the
Commission feels that the state has adequate areas to be covered within the
service period and there is no need to extend the facility to cover the whole
country. However, there may be no objection to permit the employees to
visit any place outside the State but within the country during the second
block of the four years block, subject to the condition that their claim
shall be restricted to the last point in that direction within the State. This
will facilitate the employees not necessarily to visit a place situated within the
State only during the second two year block of four years but also to visit any
place outside the state. As such the Commission recommends to permit the
employees to avail this concession to go to any place outside the State also
but within the country, together with eligible family members, during the
second block of two years subject to the condition that their claim shall be
restricted to the last point in that direction within the State.

11.73. Regarding the third request relating to the arrangement of issue

of warrants by the railways/ A.P.S.R.T.C. buses, the Commission advises the
Govt. to explore the possibilities of arranging for the issue of warrants by the
railways/ A.P.S.R.T.C. buses.

11.74. It is noticed from the existing rules that the used original tickets
of Air/ Train/ A.P.S.R.T.C. buses have to be enclosed to the L.T.C. claim.
The employees are expected to surrender their tickets to the railway
authorities while coming out of the railway station. This issue may also be
taken up with the Railway authorities.

11.75. As per the existing rules if the journeys are performed by the
employees by air, the claim has to be restricted to the amount admissible had
the journey been made by train/ A.P.S.R.T.C. buses. In cases where the
employees are entitled to travel by air while on official tour, they along
with their family members, may be permitted to travel by air and claim
 160

the actual amount paid for the journey in L.T.C. also. The Commission
therefore recommends to issue revised instructions accordingly.

11.76. In the existing rule, the criteria for dependency for the family
members on the Govt. employee is not clearly laid down. It is therefore
desirable to put a monetary limit for the purpose of dependency of the family
members on the Govt. employee. As per the L.T.C. rules applicable to the
employees of Govt. of India, the definition of dependency of the family
members is linked to the minimum family pension prescribed by the Govt.
and dearness relief there on – vide O.M.F.No.31011/4/2008-Estt.(A) dated
23-09-2008 of Department of Personnel & Training, Ministry of Personnel,
Public Grievances & Pension Govt. of India. It is desirable to adopt the same
principle in the case of L.T.C. claims of State Govt. employees. The
Commission, therefore, recommends that a member of the family whose
income from all sources, including stipend, pension (including dearness
relief thereon) does not exceed the minimum family pension and dearness
relief thereon, shall be deemed as dependent on the employee.

11.77. The existing provision of travel by A.P. Tourism Development

corporation buses may be continued.

2. Transport Allowance:

11.78. Many associations requested for the payment of Transport

Allowance on par with the employees of Government of India. This
allowance is being paid to the employees of Government of India from 1-1-
1996 basing on the recommendation of 5th CPC. Basing on the
recommendations of the 6th CPC, the quantum of this allowance was
enhanced by the Government of India and C.C.A. was altogether
discontinued. The scales of pay of the State Govt. employees were revised
from 1-7-98 and again from 1-7-2003. The earlier PRCs did not recommend
payment of Transport Allowance. In the Government of India, the offices are
mainly located at cities and big Towns while in the A.P. State, most of the
offices are located at small Towns and even in Villages and the employees
working in those places will not incur any major expenditure towards
transport charges to go to office. Further, the non-Gazetted and class-IV
employees working in Twin cities, Visakapatnam, Vijayawada and Warangal
(including Hanumakonda and Kazipet) are being allowed concessional bus
pass to go to their offices. Such a facility is not available to the employees of
G.O.I.

11.79. It is also recommended elsewhere to allow this concession to

the employees working in the offices which are located in all the Municipal
Corporations in the State. More over the Commission has recommended that
the system of payment of CCA to the employees working in cities and major
 161

towns be continued in the State and recommended an appropriate revision of

the rates besides continuing the facility of concessional bus pass to attend to
their offices.

11.80. The Commission, therefore, is not inclined to recommend

the payment of Transport Allowance to the employees of the State. In so
far as C.C.A. is concerned, the commission, elsewhere in this report made
necessary recommendations.

3. Concessional Bus Pass facility to the NGOs:

11.81. At present the employees drawing pay in the scale of Pay of

Rs.8385-19125 (RPS 2005) and working in Twin Cities, Hanamkonda /
Warangal/ Kazipet, Visakhapatnam and Vijayawada are eligible for the
facility of Concessional bus pass to travel in APSRTC city service. In this
scheme, the employee will bear 1/3 of the cost of pass while the State will
bear 2/3 of the cost. Some Associations represented to extend the same
facility to the employees working in other places also where the APSRTC is
running city services. There is a rapid growth in several urban areas leading to
upgradation of the municipalities into Municipal Corporations and the
employees may have to reside at a sufficiently distant places to their offices.
The commission therefore recommends to extend this facility to the
employees working in the limits of all the Municipal Corporations in the
State if the A.P.S.R.T.C. is running city services in those places.

11.82. The other request in this regard is to permit the employees to

travel by Metro Expresses, Metro-liners & A/c Buses also. Already orders
were issued permitting the employees to travel by Metro- expresses subject to
the condition that the Government will bear only 2/3 of the cost of bus pass
by the ordinary bus service while the remaining amount will be borne by the
employee. The Commission is in agreement with the request and accordingly
recommends to accord permission to the employees to travel by Metro liners
and A/C Buses also subject to the condition that the share of Government
should not exceed 2/3 cost of travel by ordinary buses and the remaining cost
is borne by the individual.

4. Reimbursement of Tuition Fees in respect of the Children of

NGOs:

11.83. The employees associations have requested to enhance the

amount of reimbursement of Tuition fees paid by the employees in respect of
their children from the existing limit of Rs.400/- p.a. to Rs.12000/- p.a. as
applicable to the employees of Govt. of India.
 162

11.84. In the Govt. Schools no tuition fees is collected from the

students. In the case of girls no tuition fees is collected upto graduation level
in Govt. Colleges. In case the employees send their children to private schools
tuition fees has to be paid. As a gesture, Govt. are reimbursing some portion
of tuition fees to the N.G.G.Os from the year 1978 onwards. This scheme is
limited only to the N.G.G.Os. This is restricted to only upto two children.
Based on the recommendations of PRCs from time to time, Govt. are issuing
orders enhancing the maximum amount of re-imbursement of fees and also
specifying the scale of pay of N.G.G.Os upto which this facility is extended.
The latest orders were issued in G.O.Ms.No.119 Education (Ser-IV) Dept.
dated: 22-09-2005 enhancing the rate of reimbursement of fees from Rs.300/-
to Rs.400/- per pupil per annum and this is admissible to such of the
employees who are in the scale of pay of Rs.7770-18575 and below.

11.85. In G.O.Ms.No.212 Education (Ser-IV) Dept. Dt:11-7-1994,

while enhancing the amount of reimbursement of tuition fees for the children
of N.G.Os from Rs.105/- to Rs.200/- p.a. per pupil, it was stated in Para 1 of
that G.O. that the facility of reimbursement of tuition fees was available for
children studying upto graduate level (i.e. from L.K.G., U.K.G. classes to
Intermediate classes). In G.M.No.665/Ser-IV-2/94 Dt: 18-10-94 of Education
Dept. it was clarified that the enhancement of the amount of tuition fees
ordered in G.o.Ms.No.212 Education (Ser-IV) Dept., Dt: 11-7-94 applies only
where the reimbursement of fee earlier fixed is Rs.105/- p.m. It was also
stated in the last para of that Govt. memo that in respect of other categories
the previous orders issued by Govt. fixing the reimbursement of Rs.65/- and
Rs.75/- remains the same. Again in para 2 of G.O.Ms.No.73 Education (Ser-
IV) Dept. Dt: 28-10-99, it was ordered to enhance the amount of
reimbursement of tuition frees from Rs.200/- to Rs.300/- uniformly for all the
classes I to X. It was also stated in para 3 of that G.O. that in respect of other
categories the previous orders of Govt. fixing the reimbursement of Rs.65/- &
Rs.75/- remains the same. In G.M.No.17531/Ser-IV-2/2002-1 Dt: 23-9-2002,
it was clarified to the effect that reimbursement of tuition fee of Rs.300/- p.a.
is permissible in respect of children of N.G.Os who are studying Intermediate
1st & 2nd year. Again in G.O.Ms.No.119 Edn. (Ser-IV) Dept. Dt: 22-9-05, it
was ordered to enhance the amount of reimbursement of tuition fees from
Rs.300/- to Rs.400/- p.a. per pupil uniformly for all the classes I to X. It was
also stated in para 3 of that G.O. that in respect of other categories the
previous orders of Govt. fixing the reimbursement of Rs.65/- & Rs.70/-
remains the same. It is not clear from the orders of Govt. referred to above in
which cases the maximum reimbursement of Rs.65/- & Rs.70/- is applicable.

11.86. The Education Dept. was requested to inform whether the

reimbursement of tuition fees paid by the N.G.Os in respect of their children
studying in classes L.K.G., U.K.G. and Intermediate classes is permissible
since nothing was stated about this in G.O.Ms.No.119 Education (Ser-IV)
 163

Dept. Dt: 22-9-2005. The Dept was also requested to inform as to the
categories to which the rate of reimbursement of Rs.65/- & Rs.70/- is
admissible. No information is received by the Commission from Education
Dept.

11.87. Based on the recommendations of 6th C.P.C. the Govt. of India

issued orders sanctioning the reimbursement of maximum tuition fees of
Rs.12000/- p.a.

11.88. The demand for parity with Central Government employees

cannot be obviously met. The employees have to bear the expenditure from
their own resources when they decide to admit their children in reputed
private schools which are charging high rates of fees. However, keeping in
view the increase in the rates of tuition fees the Commission recommends
reimbursement of the tuition fees amount at the rate of Rs.1000/- p.a. per
pupil subject to the condition that the reimbursement should be made in
respect of two children only. This scheme of reimbursement of tuition
fees shall be allowed to all the Class-IV employees and Non-Gazetted
officers and that the claim is permissible in respect of children studying
in all the classes upto graduation level i.e. from L.K.G. upto and inclusive
of the Intermediate/ 12th Class. The other conditions regarding the
submission of receipts, certificates, etc. would continue.

5. Funeral Charges of deceased Govt. employees:

11.89. The Head of the office is permitted to sanction not more than
Rs.5,000/- towards the expenditure on obsequies or transport of deceased
Govt. employees, as per the orders issued in G.O.Ms.No.1669 G.A. Dept. Dt:
15-9-1965 as amended from time to time, the latest being G.O.Ms.No. 596
G.A. (Ser. Wel-I) Dept.Dt: 6-8-07.

11.90. The employees’ Associations have represented to enhance this

amount upto Rs.10,000/- in view of the increase in the expenses besides the
cost of transportation of the body to the native place.

11.20. Although the order of enhancement of the amount from

Rs.2,000/- to Rs.5,000/- was issued in the month of August 2007 only, the
Commission feels that there is some justification in their request and
therefore recommends to increase the amount to Rs.10,000/-.

11.21. As regards the other request of the association to pay the cost of
transportation of the body the Commission is of the view that due to
implementation of Presidential order on six point formula majority of the
posts are either localized or zonal cadre posts. As such the Commission is not
 164

in favour of recommending payment of the cost of transportation of the body

additionally.
6. Remuneration to the Drivers, Roneo Duplicating Operators and
Lift Operators for attending to the Official duties on holidays:

11.22. As per the orders issued in G.O.Ms.No.280 Fin (TA)

Department, dated 15-10-05 the Drivers of Government Vehicles are allowed
a remuneration of Rs.50/- per day W.E.F. 15-10-2005, if they perform official
duties on a holiday and if a compensatory holiday could not be granted in lieu
thereof.

11.23. The lift operators of Secretariat / Legislature Departments who

perform official duties on a holiday and who could not be granted a
compensatory holiday in lieu thereof are allowed a remuneration of Rs.25/-
per day W.E.F. 6-10-1994 as per G.O.Ms.No.347 Finance and Planning (F.W.
TA) Department, W.E.F.dt.6-10-1994. This rate was not revised after words.

11.24. The Roneo duplicating operators requested to allow the

remuneration on par with drivers if they attend to the official duties on a
holiday.

11.25. The commission recommends that the Drivers of the

Government Vehicles, Roneo duplicating operators of all the
Government Departments and the Lift Operators of all the Government
Departments who are paid salary in a regular scale of pay may be paid a
remuneration at Rs.75/- per day. This remuneration would be payable if
they are directed to perform official duties on a public holiday and if they
could not be granted a compensatory holiday in lieu thereof. The certificate
prescribed in G.O.Ms.No.313, Finance & Planning (FW-TA) Department,
dt.27-09-1989 read with G.O.MS.No.219, Finance & Planning (FW-TA)
Department, dt.27-05-1993 and G.O.Ms.No.347 Finance & Planning
(FW.TA) Department, Dt. 06-10-1994 may be continued to be insisted to be
furnished by the concerned controlling officers.

7. (a) Special Compensatory Allowance:

11.26. Based on the Government of India’s order, the State
Government, issued orders in the year 1971, renaming the then special pay
admissible in unhealthy localities as “Bad Climate Allowance” and treated it
as a Special Compensatory allowance. Since then orders were issued by
different departments of Government sanctioning special allowances some of
them are as follows:
A. Finance Department have issued orders regarding the Bad Climate
Allowance
 165

B. (i) Revenue Department later issued orders for Payment of agency

allowance where bad climate allowance was not payable.

(ii) Irrigation Department issued orders for payment of

project/construction allowance, rent free quarters of Addl. H.R.A. in
lieu thereof; which is paid because of difficult living and working
conditions faced by employees working in projects.

(iii) Social Welfare Department also issued orders for payment of Special
Compensatory Allowance, enhanced Addl.HRA in lieu of Rent free
quarters in Class I & Class II Agency tracts for employees working in
Scheduled areas.
11.27. With a view to have a comprehensive approach on Special
Compensatory Allowance the Government constituted a High Power
Committee with Sri K.V.Natarajan I.A.S, as chairman & six other members in
G.O.Rt.No.1224 Fin & Plg. (FW-TA) Dept., dt.15-5-1990.
11.28. The High Power Committee recommended payment of Special
Compensatory Allowance for the employees working in scheduled areas.
Based on that report orders were issued by Government in G.O.Ms.No.298
Fin. & Plg. (F.W.T.A) Dept., dt.28-12-1991, and in G.O.Ms.No.9 Fin. & Plg.
(F.W.T.A.) Dept., Dt.17-01-1992 for the payment of Special Compensatory
Allowance at slab rates with reference to the basic pay in RPS, 1986 for
employees working in the scheduled areas. In G.O.Ms.No.228 Fin. & Plg.
(FW-TA) Dept., Dt.29-05-1993, and in G.O.Ms.No.153 Fin. & Plg. (FW-TA)
Dept., Dt.10-09-1999 orders were issued continuing the said allowance duly
modifying the basic pay slabs in the respective pay revisions. This issue was
not examined by any of the PRCs from 1993 to 2005.
11.29. Government in G.O.Rt.No.1648 G.A.(Spl.A) Dept.,Dt.24-03-
2006, referred the issue of review of the Special Compensatory Allowance to
the One Man Commission 2006. Based on the recommendations of One Man
Commission 2006, Government issued orders in G.O.Ms.No.6 Fin (TA) Dept.
Dt.12-01-2007, sanctioning the Special Compensatory Allowance at Slab
rates on the basic pay in RPS 2005 as shown below:

Basic Pay Rate of Special Rate of Special Rate of Special

range in the Compensatory Compensatory Compensatory
Revised Pay Allowance admissible Allowance Allowance
Scales, 2005 in Non-Mandals admissible in admissible in
Mandals Hills/Hill tops
(Rs) per month (Rs) per month (Rs) per month
1 2 3 4
Upto Rs.300/- Rs.375/- Rs.450/-
Rs.6040/-
 166

Basic Pay Rate of Special Rate of Special Rate of Special

range in the Compensatory Compensatory Compensatory
Revised Pay Allowance admissible Allowance Allowance
Scales, 2005 in Non-Mandals admissible in admissible in
Mandals Hills/Hill tops
(Rs) per month (Rs) per month (Rs) per month
Rs.6041/- and Rs.375/- Rs.450/- Rs.525/-
above upto
Rs.7770/-
Rs.7771/- and Rs.450/- Rs.550/- Rs.600/-
above upto
Rs.9775/-
Rs.9776/- and Rs.550/- Rs.600/- Rs.675/-
above upto
Rs.12070/-
Rs.12071/- Rs.600/- Rs.650/- Rs.750/-
and above
upto
Rs.16450/-
Rs.16451/- Rs.650/- Rs.700/- Rs.825/-
and above

11.30. The List of Villages/ Hamlets in Scheduled areas located in

Non-Mandals, Mandal Head Quarters and Hills / Hill tops are detailed in
Annexure I, II & III respectively of G.O.No.6., Fin(TA) Dept., Dt:12-01-07.
In G.O.Ms.No.295 Fin (TA) Dept., Dt.4-10-2008, orders were issued
extending the Special Compensatory Allowance to the applicants working in
the agency areas mentioned in several O.As detailed in para 5 of G.O.295.
Neither the names of villages/Hamlets nor the names of applicants to whom it
is extended was indicated in the Government Order. Again in G.O.Ms.No.163
Fin (TA) Department, Dt.4-6-2009 Special Compensatory Allowance was
extended to the applicants in some more O.As. filed in A.P.A.T. and in one
W.P. filed in A.P. High Court. In this Government Order also the names of
villages/ Hamlets and the names of the petitioners in the O.As. / W.P. were
not specified.

11.31. Requests have been made to this commission to recommend

Special Compensatory Allowance as a percentage of basic pay instead of at
slab rates.

11.32. The Commission opines, that it is desirable to continue to pay

the Special Compensatory Allowance on slab rates only. As the rates were
arrived at as recently as in 2007 the Commission recommends a modest
increase in the rates of Special Compensatory Allowance. The increased rates
are as mentioned below.
 167

Basic Pay range Rate of Special Rate of Special Rate of Special

in the Revised Compensatory Compensatory Compensatory
Pay Scales, 2008 Allowance Allowance Allowance
admissible in Non- admissible in admissible in
Mandals Mandals Hills/ Hill tops.
(Rs) per month (Rs) per month (Rs) per month
1 2 3 4
Upto Rs.325/- Rs.400/- Rs.475/-
Rs.10600/-
Rs.10601/- Rs.400/- Rs.475/- Rs.550/-
and above upto
Rs.13660/-
Rs. 13661/- Rs.475/- Rs.575/- Rs.625/-
and above upto
Rs. 17050/-
Rs.17051/- Rs.575/- Rs.625/- Rs.700/-
and above upto
Rs. 21250/-
Rs.21251/- Rs.625/- Rs.675/- Rs.775/-
and above upto
Rs. 28450/-
Rs.28451/- Rs.675/- Rs.725/- Rs.850/-
and above

11.33. The Commission suggests that the names of Villages / Hamlets

covered by G.O.Ms.No.295 Fin (TA) Dept.,Dt.4-10-2008 and
G.O.Ms.No.163 Fin (TA) Dept., Dt. 4-6-2009, should also be specified and
communicated along with the Government Orders. This would make it easy
for the Officers processing the Claims to ascertain the correctness of the
claim. The Commission, also recommends to issue amendments to Annexures
I, II & III of G.O.Ms.No.6, incorporating the names of villages / Hamlets, in
Non-Mandals and the names of Mandal Headquarters and names of
Villages/Hamlets located in Hills / Hill tops so that the list would be
exhaustive and comprehensive.

11.34. It is also noticed by the Commission that the orders issued in

G.O.Ms.No.295 Fin (TA) Department, dt.04-10-2008 and in G.O.Ms.No.163
Fin (TA) Dept., Dt.4-6-2009 are made applicable only to the applicants who
filed O.As in A.P.A.T. and W.P. in A.P. High Court. Equity demands that the
orders issued in the above two Government Orders are made applicable to all
the employees working in the Villages / Hamlets in Non-Mandals, at Mandal
Head quarters and in the Villages / Hamlets located in Hills / Hill Tops
uniformly. The Commission, therefore, recommends to issue orders
extending Special Compensatory Allowance to all the employees working in
the Villages /Hamlets in Non-Mandals, Mandal Headquarters and Villages /
Hamlets located in Hills / Hill tops covered by the above two Government
Orders without restricting it only to those employees who approached courts.
 168

(b) Tribal Allowance for Doctors

11.35. In G.O.Ms.No.411 H.M. & F.W. (A2) Dept, Dt.5-11-2001,

orders were issued increasing the rate of Tribal Allowance from Rs.1500/-
p.m. to Rs.2000/- p.m. to the doctors working in tribal areas. In respect of
Lady doctors working in tribal areas the rate of this allowance is Rs.2500/-
p.m. This is admissible from 1-11-2001. As the rates of Tribal allowance are
higher than the rates of special compensatory allowance suggested above and
as drawal of both special compensatory allowance and tribal allowance by the
doctors working in tribal areas is not correct the commission recommends that
the doctors who are eligible for the Tribal allowance as per G.O.Ms.No.411
H.M. & F.W (A2) Dept., Dt.5-11-2001, would not be eligible for the payment
of this Special Compensatory Allowance.

8. Uniform Allowance and Uniform Maintenance Allowance:

11.36. Based on the recommendation of PRC 2005, orders were issued

in G.O.Ms.No.263 Fin (TA) Dept., Dt.15-10-2005, enhancing the rate of
Uniform Allowance WEF 15-10-2005. In pursuance of the recommendation
of O.M.C. 2006 orders were also issued in G.O.Ms.No.233 Fin (TA) Dept.,
dt.10-08-06 enhancing the rate of allowance to some categories and uniform
allowance was also sanctioned afresh for the post of Assistant Sub Inspector
of Police WEF 10-08-2006. The categories of posts / Departments, rate of
allowance now admissible and the periodicity of payment of the allowance
are detailed in Annexure I.

11.37. It is noticed that different rates of uniform allowance are in

vogue for various categories of posts in several departments. Further, the
periodicity of payment of this allowance is also not uniform. It varies from
one year to five years for different categories.

11.38. In addition, it is understood, that clothing allowance @Rs.225/-

per annum is admissible to the staff working in C.I.D. and District Special
Branches of Police Department (vide G.O.(P)No.511 Fin (TA) Department
Dt.11-06-04) which was sanctioned based on the recommendation of
Anomalies Committee 2003. The categories of personnel to whom this
allowance is admissible in those departments was not specified either in the
recommendation of Anomalies Committee 2003 or in the Government Order.
Though PRC 2005 recommended to increase the rate from 225/-p.a to Rs.
250/- p.a. orders issued, if any, by Government on this recommendation are
not brought to the notice of this Commission. It is also noticed that Special
Uniform grant of Rs.4500/- per annum is admissible to the staff working in
“Grey Hounds” unit of Police Department as per G.O.Ms.No.195 Fin. & Plg.
(FW-TA) Department Dt.24-11-99 and it was ordered to be continued in RPS
2005 also in G.O.Ms.No.510 Fin (TA) Dept., Dt. 28-12-05. The same rate of
 169

Special Uniform grant of Rs.4500/- p.a. was extended to the “Special

Intelligence Branch” personnel of Police Department in G.O.Ms.No.290
Home (Courts-C) Department dt.08-09-2000 and it was ordered to be
continued in RPS 2005 also as per G.O.Ms.No.511 Fin (TA) Dept., Dt.28-12-
05.

11.39. It is also noticed that while uniform allowance (cash) is allowed

to the higher level of posts in the Departments, uniform is being supplied to
the lower level of posts including Last Grade Service employees.

11.40. The Departmental Manuals and the specific orders issued by the
administrative departments lay down the categories of posts for which
uniform is prescribed to be worn while discharging their official duties.

11.41. The employees’ associations pointed out that uniform is not

being supplied regularly by the Departments for the lower level categories of
posts and requested for the payment of uniform allowance in lieu of supply of
cloth or stitched uniforms as is being done in the case of the higher level
categories.

11.42. Supply of uniform by the Departments would normally be more

economical than the payment of uniform allowance as procurement in large
volumes has its advantages. But the supply of uniform by the departments
has got its own inherent problems like absence of budgetary provision
coupled with reductions in provisions even if they are made on grounds of
economy, delay in procurement of cloth and its supply after getting it stitched,
in addition to complaints relating to quality of material supplied. With the
discontinuance of supply of dress by the Department of Printing, Stationery &
Stores Department, the respective departments are expected to supply the
uniforms to the persons who are entitled to it. We notice that inadequate
budget provisions, economy cuts and delays in procurement, have virtually
resulted in denial of supply of uniform to those covered in the stationery
manual. The only exception is those who belong to the Uniformed Services.
Even here the Excise Constables and Head Constables represented that the
Department has not been supplying Uniform to them for a long time. We feel
that the present system is riddled with uncertainties and inadequacies which
require to be addressed.

11.43. There is need for a radical change in the approach to the

supply of Uniforms. In the first instance we recommend that the
entitlements as per stationery manual should be reviewed and those who
are not governed by a prescribed dress code may be eliminated from the
list of those to whom cloth / uniform is to be supplied. We have done
some exercise and a list of personnel who should be governed by a dress
code is placed at Annexure-II. In respect of those who are covered by a
 170

dress code/ uniform, the present distinction of supplying cloth, shoes etc.,
to the subordinate staff while allowing uniform allowance for senior
functionaries should be dispensed with. All those who are governed by
the dress code shall be given allowance to procure the Uniform and any
other equipment like belts, shoes, cap etc. Instead of prescribing
different periods for the payment of this allowance, the commission is of
the view that payment of allowance once a year would serve the purpose
for which it is allowed. We recommend that the amount may be
disbursed along with salary for the month of March which is paid in
April. This would ensure proper budgeting and release of funds on time.

11.44. Taking into account the existing rates of allowance and the
approximate cost of the uniform including equipment to go with the
Uniform the following rates of Uniform Allowance are recommended.

1. (a) For employees belonging to uniformed

services, (viz) Police, (except Grey hounds,
S.I.B. Personnel, C.I.D., & Dist. Spl.
Branches) Prohibition & Excise, Forest, Fire
Rs.2000/-p.a.
& Emergency Services, Prisons & correctional
services Transport, Legal metrology, Ports
departments and the employees belonging to
Municipalities.
(b) For the Operational Staff in “Grey Hounds”
Rs.5000/- p.a.
and S.I.B. Units of Police Department
(c) For the Staff in C.I.D. and Dist. Special
Branches covered by G.O.(P)No.511 Fin (TA) Rs.300/- p.a.
Dept., Dt. 11-06-04.
2. For the Nursing personnel working in all the
Medical Departments, i.e. Medical Education,
Health, Family Welfare, Institute of Preventive Rs.1,500/- p.a.
Medicine, Insurance Medical Services & Ayush
Departments.
3. For the employees of A.P. High Court, APAT and
other courts for whom wearing of Black Coat is
Rs.1,000/-p.a.
compulsory as per the orders of
A.P.H.C./A.P.A.T.
4. For the staff who have to wear Apron
compulsorily in Laboratories / Dispensaries / Rs.500/- p.a.
Hospitals etc.,

11.45. In respect of Sl.Nos. 1, 2 and 3 the categories of posts for which

Uniform Allowance is to be paid is given at Annexure-II. In respect of the
staff working in the Laboratories / Dispensaries / Hospitals etc., covered by
Sl.No.4. the categories of posts for which this allowance is payable may be
notified by the respective administrative departments of Government in
 171

consultation with Finance Department as that information is not readily

available with the Commission.

11.46. In respect of the staff belonging to Protocol Department and Raj

Bhavan, for whom separate dresses are prescribed, the existing procedure of
supplying the uniform is recommended to be continued for Officers and other
employees. Similarly, in the case of staff belonging to A.P. Bhavan, New
Delhi, for whom separate dresses are prescribed for summer season and
winter season, the existing procedure of supply of dress to the class IV
employees is recommended to be continued. It is reported that in respect of
other staff summer/winter Uniform Allowance is being paid as shown below
as per G.O.Ms.No.410 G.A.(GH.I) Dept.,dt.12-10-2001.

a. Summer Uniform Allowance at Rs.1,500/- per head once in

3 years.

b. Winter Uniform Allowance at Rs.2,000/- per head once in

3 years.

11.47. In view of the increase in the cost of cloth and stitching charges,
the Commission recommends to revise the rates as shown below:

a. Summer Uniform Allowance at Rs.750/- per head per annum.

b. Winter Uniform Allowance at Rs.1,000/- per head per annum.

11.48. The Commission also recommends to pay this allowance along

with the salary for the month of March which is paid in April every year.
Uniform Maintenance Allowance
11.49. Based on the recommendation of the PRC 2005, orders were
issued in G.O.Ms.No.260 Fin (TA) Department Dt.15-10-05, enhancing the
rate of Kit Maintenance Allowance by 50% over the existing rates to the
categories of posts to which it was admissible earlier.

11.50. Further, washing allowance is admissible at Rs.22.50 p.m. to

Dark room Assistant and Radiographer of Ayush Department as per
G.O.(P)No.511 Fin (TA) Dept., dt.11-06-04. The details of posts for which
Kit Maintenance Allowance/ Dhobi Allowance is admissible now are
indicated in Annexure III.

11.51. There are at present varying rates of Kit Maintenance/ Dhobi

Allowance and Washing Allowance for different categories in different
departments. The commission, feels that it is desirable to replace the
multiplicity of allowances by a Uniform Maintenance Allowance. All those
who are eligible for Uniform allowance would automatically be eligible for
 172

Uniform Maintenance Allowance. Accordingly, the Commission

recommends payment of Uniform Maintenance Allowance at Rs.100/-
p.m. to all the categories who have to wear Uniforms as specified in items
(A) (B) & (C) of Annexure II and at Rs.50/- p.m. for all other categories
who have to wear only Aprons / Coats etc. (vide item (D) of Annexure II
and Staff of Laboratories / Dispensaries / Hospitals etc,.) This Uniform
Maintenance Allowance is payable only to such of the categories to whom
uniform allowance is admissible or those exceptional cases as in the case of
Raj Bhavan, A.P. Bhavan, Protocol Department, etc., where Uniform is
supplied.

11.52. It is noticed that the Kit Maintenance Allowance is being

allowed to the several categories of posts in Institute Preventive Medicine
listed in Annexure IV. At present they are not eligible for the payment of
Uniform Allowance. Information was not made available to the commission
whether uniform is being supplied by the Department periodically. It is
therefore recommended that the payment of Uniform Allowance or supply of
Uniform, if it is being made, and Uniform Maintenance Allowance be
discontinued to those categories. However, if the Departmental codes or any
orders of Government prescribed wearing of uniform the Institute of
Preventive Medicine is advised to approach Government in Finance
Department through it’s Administrative Department and if on a detailed
examination it is considered necessary to insist on their wearing Uniform /
Apron separate orders may be issued extending the rates of Uniform
Allowance and Uniform Maintenance Allowance now recommended by this
commission to the corresponding categories.

11.53. It is further recommended that suitable instructions may be

issued to the concerned administrative authorities to insist on compulsory
wearing of uniform by the employees and that stringent punishments have to
be imposed in cases where the employees fail to wear the Uniform while
discharging their official duties.

11.54. While we have tried to capture the correct information about the
categories eligible for supply of Uniform / Uniform allowance it is possible
that we have overlooked the claims of some of them for Uniform allowance
and Uniform maintenance allowance. Similarly, requests were made by
several employees’ associations to sanction Uniform Allowance. But the
codal provisions or the orders of Government prescribing uniform for those
categories were not made available. It is therefore for the concerned
administrative Departments to examine the omissions and requests for fresh
inclusions with reference to the departmental instructions and obtain the
orders of Government in consultation with Finance Department sanctioning
the Uniform Allowance and Uniform Maintenance Allowance at the rates
recommended by this Commission. We have no doubt that there would be a
 173

thorough examination of these claims with reference to the present

requirements before considering their claims. Receipt of these allowances in
the past by earlier Government orders cannot be the sole justification for their
continuance.
ANNEXURE I

Existing Rates of Uniform Allowance

Amount of
Sl. Periodicity of
Department & Category Allowance
No. Payment
Rs.
1 FOREST DEPARTMENT
Once in 5
3375
(i) Forest Range Officer years
Once in 5
3375
(ii) Deputy Range Officer years

2 HIGH COURT OF A.P.

(i) Court Masters * 900 Once in a year

(ii) Court Officers * 900 Once in a year
(iii) P.Ss. To Hon'ble Judges * 900 Once in a year
(iv) Section Officers * 900 Once in a year
* Who attend the Courts and
who are required to wear Black
coat in accordance with
Standing Order No.10 of Andhra
Pradesh High Court

3 (A) MEDICAL & HEALTH DEPARTMENT

(i) Nursing Tutors Gr.I 1013 Once in a year
(ii) Principal, ANM Training Once in a year
1013
school/ Nursing Officer
(iii) Head Nurses 1013 Once in a year
(iv) Asst. Supdt., H.V. Training Once in a year
1013
School/ Sister Tutors
(v) Staff Nurses Once in a year
1250
(vi) Health Visitor 1013 Once in a year
(vii) Principal (Nursing) & Once in a year
Tutors 1013

(viii) A.N.Ms./ M.As. 1013 Once in a year

(ix) Ayahs/ Lab Technician/ 3 pairs of uniform
Animal Attendant/ Lab - per annum
Attendant/ Lab Asst.
 174

Amount of
Sl. Periodicity of
Department & Category Allowance
No. Payment
Rs.
(B) INDIAN MEDICINE&HOMEOPATHY DEPARTMENT(AYUSH)
(i) Sr. Sister/ Staff Nurse 1013 Once in a year
(ii) Auxiliary Nursing Midwives 1013 Once in a year
(iii)Nurse 1013 Once in a year
(C) INSTITUTE OF PRVENTIVE MEDICINE DEPARTMENT
Staff Nurse 1013 Once in a year
(D) INSURANCE MEDICAL SERVICES DEPARTMENT
(i) Head Nurses/ Staff Nurses 1013 Once in a year
(ii) A.N.Ms./ Maternity
1013 Once in a year
Assistant
4 (A) POLICE DEPARTMENT
(1) Commandant, A.P.S.P. 3375 Once in 2 years
(2) Addl. Commandant, 3375
Once in 2 years
A.P.S.P.
(3) Addl. Supdts. Of Police 3375 Once in 2 years
(4) Commandant, Home Guards 3375 Once in 2 years
(5) Deputy Supdt. Of Police, 3375
Once in 2 years
Category-II
(6) Deputy Supdt. Of Police, 3375
Once in 2 years
Category-III
(7) Deputy Supdt. Of Police 3375
Once in 2 years
Communications
(8) Police Transport Officer/
P.A. to Police Transport
Officer/ Director Police 1688 Once in a year
Communications/ Supdt.,
Police Communications
(9) Inspector of Police
1688 Once in a year
(Category I of Class I)
(10) Inspector (Selected from
among Probationary Asst. 1688 Once in a year
Prohibition Officers)
(11) Sub-Inspectors of Police
recruited directly (Category 1688 Once in a year
2 of Class I)
(12) Sub-Inspectors of Police
promoted (Category 2 of 1688 Once in a year
Class I)
(13) Sub-Inspectors (Selected
from among the Asst.
1688 Once in a year
Prohibition Officer &
Prohibition S.Is.)
(14) Inspector of Police
Shorthand Bureau 1688 Once in a year
(Category 1 of Class II)
(15) Sub-Inspectors of Police
recruited direct 1688 Once in a year
(Category 2 of Class II)
 175

Amount of
Sl. Periodicity of
Department & Category Allowance
No. Payment
Rs.
(16) Inspectors Police
Communications 1688 Once in a year
(Category 1 of Class V)
(17) Radio Supervisors recruited
direct (Category 1 of 1688 Once in a year
Class V)
(18) Radio Supervisors
promoted (Category 2 of 1688 Once in a year
Class V)
(19) Inspectors of Police
Transport Organization 1688 Once in a year
(Category 1 of Class VI)
(20) Sub-Inspectors of Police,
Police Transport
Organization, recruited 1688 Once in a year
direct (Category 2 of
Class V)
(21) Sub-Inspectors of Police,
Police Transport
1688 Once in a year
Organization promoted
(Category 2 of Class VI)
(22) Sub-Inspector of Police,
Women Police (Category 1 1688 Once in a year
of Class VII)
(23) Sub-Inspector – Women
Police (Category1 of 1688 Once in a year
Class VII)
(24) Finger Print Sub-Inspector
(Designation of Tester Sub
1688 Once in a year
-Inspector is changed as
Finger Print Sub-Inspector)
(25) Asst. Sub-Inspector of
1688 Once in a year
Police
(B) FINGER PRINT BUREAU
(i) Inspector FPB 1688 Once in a year
(ii) Dy. S.P.FPB 3375 Once in 2 years
(iii) Director (FPB) 3375 Once in 2 years
(C) SPECIAL PROTECTION FORCE
(i) Commandant 2250 Once in 2 years
(ii) Addl. Commandant 2250 Once in 2 years
(iii) Asst. Commandant 2250 Once in 2 years
5 PORT DEPARTMENT
(i) Asst. Port Conservator-
600 Once in a year
cum-Wharf Supervisor
(ii) Port Conservator 600 Once in a year
 176

Amount of
Sl. Periodicity of
Department & Category Allowance
No. Payment
Rs.
6 PRISONS DEPARTMENT
(i) Additional Inspector
3000 Once in 5 years
General *
(ii) Deputy Inspector General * 3000 Once in 5 years
* Vide G.M.No.45187/ Pri-B/98-3, Dt:18-5-99 of Home (Prisons-B)
Dept. read with Lr.No.WB/8/95 Dt:3-12-98/19/4/95 of Inspector General
of Prisons
(iii) Supdt. Of Jails
6750 Once in 5 years
(Central Prisons)
(iv) Deputy Supdt. Of Jails/
District Sub-Jail Officer/
Principal S.I.C.A./ Supdt. of 3375 Once in 5 years
Borstal School/Supdt. Of
District Jails.
(v) Jailors/ Chief Drill
Instructor/ Chief Law
Instructor/ Jailor (Women) 3375 Once in 5 years
in Central Prisons and
District Jails.
(vi) Deputy Jailors/ Asst. Law
Instructor/ Asst. Drill
3375 Once in 5 years
Instructor/ Reserve Asst.
Matrons.
(vii)Asst. Supdt., Borstal School/
3375 Once in 5 years
Asst. Matron
7 PROHIBITION & EXCISE DEPARTMENT
(i) Deputy Commissioner 6750 Once in 5 years
(ii) Asst. Commissioner 3375 Once in 5 years
3375
(iii) Excise Supdt. Once in 5 years
3375
(iv) Asst. Excise Supdt. Once in 5 years
3375
(v) Excise Inspector Once in 5 years
(vi) Excise Sub-Inspector 3375 Once in 5 years
8 PROTOCOL DEPARTMENT
Asst. Comptroller (Now 338 Once in a year
redesignated as Asst. Director)
9 TRANSPORT DEPARTMENT
(i) Deputy Transport
6750 Once in 5 years
Commissioner
(ii) Asst. Transport
4388 Once in 5 years
Commissioner
(iii) R.T.O./ Secretary to R.T.A. 3375 Once in 3 years
(iv) Motor Vehicles Inspector 3375 Once in 3 years
(v) Asst. Motor Vehicles
3375 Once in 3 years
Inspector
 177

Amount of
Sl. Periodicity of
Department & Category
Allowance
No. Payment
Rs.
10 WEIGHTS & MEASURES DEPARTMENT
(i) Senior Inspector 3375 Once in 5 years
(ii) Inspector 3375 Once in 5 years
11 MUNICIPALITIES
(i) Maternity Assistant 1013 Once in a year
(ii) Health visitors 1013 Once in a year
(iii) Sanitary Inspector 338 Once in a year
(iv) Bill Collectors 338 Once in a year

Special Uniform Grant to the “Grey Hounds” & S.I.B.

Wings of Police Department

Sl.
Category Rate Periodicity
No.
1 Grey Hounds (Special Security Force)
i) Group Commander Rs.4,500/- per annum
ii) Squadron Commander Rs.4,500/- per annum
iii) Assault Commander / D.S.P. Rs.4,500/- per annum
(Communications)
iv) Dy. Assault Commander/ Rs.4,500/- per annum
Inspector (Communications)
v) Asst. Assault Commander/ Rs.4,500/- per annum
S.I & ASI Communications)
2 S.I.B. Personnel Rs.4,500/- per annum

ANNEXURE II

List of Posts for which Uniform Allowance is Admissible

(A) Uniformed Services

(i) Police Department. (other than “Grey Hounds” & “S.I.B”).

(a) Superintendent of Police (Non Cadre) and equivalent ranks.

(b) Additional Superintendent of Police (Non Cadre) and equivalent
ranks.
(c) Deputy Superintendent of Police and equivalent ranks
(d) Inspector of Police and equivalent ranks
(e) Sub-Inspector of Police and equivalent ranks
(f) Assistant Sub Inspector of Police and equivalent ranks
(g) Head Constable and equivalent ranks
(h) Police Constable and equivalent ranks
 178

(ii) “Grey Hounds” Unit of Police Department

(i) Group Commander

(ii) Squadron Commander
(iii) Assault Commander D.S.P. (Communications)
(iv) Dy. Assault Commander/ Inspectors (Communications)
(v) Asst. Assault Commander/ S.I & ASI (Communications)
(vi) Sr. Commandos, H.C (communications)H.C. (Dog Squad)
(vii) Jr. Commandos, P.C/F.E. (communications) Dog Boys,
P.C.(Dog Squad)
(j) S.I.B. Personnel
(k) Staff in C.I.D. and District Special Branches

(iii) Prisons & Correctional Services Department:

(a) Additional Inspector General.

(b) Deputy Inspector General.
(c) Superintendent of Jail and equivalent ranks.
(d) Deputy Superintendent of Jail and equivalent ranks.
(e) Jailors and equivalent ranks.
(f) Deputy Jailors and equivalent ranks.
(g) Assistant Superintendent Borstal School
(h) Assistant Matron
(i) Chief Head Warder
(j) Head Warder
(k) Warder

(iv) Prohibition & Excise Department

(a) Deputy Commissioner

(b) Assistant Commissioner
(c) Prohibition and Excise Superintendent
(d) Assistant Excise Superintendent
(e) Prohibition and Excise Inspector
(f) Prohibition and Excise Sub. Inspector
(g) Excise Head Constable
(h) Excise Constable
(i) Tree Markers
(j) Drivers

(v) Forest Department:

(a) Forest Range Officer

(b) Deputy Range Officer
(c) Forest Section Officer
 179

(d) Forest Beat Officer

(e) Assistant Beat Officer
(f) Keeper (lion) / Head Animal Keeper
(g) Animal Keeper / Mahavit
(h) Zoo Sergeant
(i) Watchman
(j) Gate Keeper

(vi) Transport Department:

(a) Deputy Transport Commissioner

(b) Regional Transport Officer / Secretary to R.T.A.
(c) Motor Vehicles Inspector
(d) Assistant Motor Vehicles Inspector

(vii) Legal Metrology Department

(a) Senior Inspector

(b) Inspector
(c) Maistriy
(d) Manual Assistants

(viii) Fire & Emergency Services Department

(a) Additional Director

(b) Regional Fire Officer
(c) Divisional Fire Officer
(d) Assistant Divisional Fire Officer
(e) Station Fire Officer
(f) Leading Fireman
(g) Firemen and equivalent ranks

(ix) Ports Department

(a) Port Conservator

(b) Assistant Port Conservator-cum-Wharf Supervisor

(B) Staff of Municipalities

(a) Sanitary Inspector
(b) Maternity Assistants
(c) Health Visitor / Health Assistant
(d) Sanitary Maistries
 180

(C) Nursing Personnel

(a) Nursing Superintendents

(b) Head Nurses
(c) Staff Nurses
(d) Auxiliary Nurse Midwives/ Maternity Assistants
(e) Ayas
(f) Sister Nurse
(g) Health Visitor
(h) MNO/FNO

(D) (i) Staff of A.P. High Court

(a) Court Master,

(b) Court Officer,
(c) Section Officer
(d) Scrutiny Officer
(e) Accounts Officer
(f) P.S to Hon’ble Judges,
(g) P.S. to Registrar
(h) Driver of the Vehicles of Hon’ble Judges & Registrars
(i) Office Subordinate (Attender) attached to the Hon’ble
Judges & Registrars.

(ii) Staff of A.P.A.T.

(a) Section Officer

(b) Scrutiny Officer
(c) Court Officer,
(d) Court Master,
(e) P.A to Hon’ble Chairman, Vice Chairman, Members and
Registrar.
(f) Driver of the Vehicles of Hon’ble Chairman, Vice Chairman,
Members and Registrar.
(g) Office Subordinate (Attender) attached to the Hon’ble
Chairman, Vice Chairman, Members and Registrar.

(iii) Staff of Special Court Under AP Land Grabbing (Prohibition)

Act.

(a) P.Ss to Hon’ble Chairman and Members

(b) P.As to Hon’ble Chairman and Members
(c) Court Master
(d) Court Officer
 181

ANNEXURE III

Existing Rates of Kit Maintenance / Dhobi Allowance

Amount of
Sl.
Department/ Category Allowance Remarks
No
Rs. p.m.
1. FIRE AND EMERGENCY SERVICES DEPARTMENT
(i) (a) Director
(Departmental Officer)
(b) Regional Fire Officer 68
(c) Deputy Director of
Fire Services
(d) Divisional Fire
Officer
(e) Asst. Divisional
Officer
(ii) (a) Station Fire Officer 51
(b) Engine Fire Officer
(a) Leading Fireman
(iii) (b) Firemen and other
equivalent ranks in Fire 34
Service Department who are
required to be in Uniform.
2. FOREST DEPARTMENT

(i) Forest Guards, Foresters, 34

Beat Officer & Asst.
Beat Officer
(ii) Forest Range Officer 34
(iii) Deputy Range 34
Officer
(iv) Forester 34
(v) Animal Keeper 34
(vi) Watchman 34
(vii)Zoo Sergeant 34
(viii)Gate Keeper 34
3. HIGH COURT OF ANDHRA PRADESH
(i) Court Masters 45
(ii) Court Officers 45
(iii) Personal Secretaries 45
to Hon’ble Judges
(iv) Section Officers 45
(v) Driver 34
(vi) Attender 34
 182

Amount of
Sl.
Department/ Category Allowance Remarks
No
Rs. p.m.
4. (a) MEDICAL AND HEALTH DEPARTMENT
(i) Auxiliary Nurse 34
Midwives and Health
Visitors
(ii) Medical employees
who are in receipt of 34
Kit Maintenance/
Dhobi Allowance
(iii) Nursing Personnel 100 w.e.f.
including Pupil 10-8-06
Nurses
(b) INDIAN MEDICINE AND HOMEOPATHY (AYUSH)
DEPARTMENT
(i) Staff Nurses of Indian
Medicine and Homeopathy 34
Department
(ii) Nursing Orderly 100 w.e.f.
10-8-06
(c) INSTITUTE OF PREVENTIVE MEDICINE, P.H. LABS,
AND FOOD (HEALTH) ADMINISTRATION
DEPARTMENT
(i) Junior Analyst 34
(ii) Lab Technician Grade-I 34
(iii) Lab Technician 34
Grade-II
(iv) Sr. Technician 34
Assistant
(v) Sample Custodian 34
(vi) Chemist 34
(vii) Asst. Bio-Chemist 34
(viii) Research Chemist 34
(ix) Chemical Assistant 34
(x) Lab Attendant 34
(xi) Roneo Operator 34
(xii) Office Attender 34
(xiii) Kamaties including Labour,
Kamati Sealer
(xiv) Sweeper 34
(xv) Head Nurse 34
(xvi) Thoti 34
(xvii) Staff Nurse 34
 183

Amount of
Sl.
Department/ Category Allowance Remarks
No
Rs. p.m.
(xviii) Chowkidar 34
(xix) Male Nursing Orderly 34
(xx) Scavenger 34
(xxi) Photographer-cum- 34
Typist
(xxii) Jr. Boiler Attendant 34
(xxiii) Dhobi 34
(xxiv) Barber 34
(xxv) Animal Attender 34
(xxvi) Vaccinator 34
(xxvii) Sr. Boiler Attendant 34
(xxviii) Boiler Mechanic 34
(xxix) Asst. Sergeant 34
(xxx) Sergeant 34
(xxxi) Animal Caretaker 34
(xxxii) Tailor 34
(xxxiii) Sealer 34
(xxxiv) Packer 34
(xxxv) Driver 34
(xxxvi) Cleaner 34
(xxxvii) Sample Taker 34
(xxxviii) Calf Watchman 34
(xxxix) Mali 34
(xxxx) Pharmacist 34
(xxxxi) Mechanic 34
(xxxxii) Electrician 34
(xxxxiii) Helper 34
(xxxxiv) Carpenter 34
(xxxxv) Sr. Mechanic 34
(xxxxvi) Mechanic Grade-I 34
(xxxxvii) Mechanical 34
Supervisor
(xxxxviii) Multipurpose Health 34
Education Officer
(d) INSURANCE MEDICAL SERVICES DEPARTMENT

Nursing Personnel 51
 184

Amount of
Sl.
Department/ Category Allowance Remarks
No
Rs. p.m.
5. (a) POLICE DEPARTMENT
(i) A.P. State Police Service
Officers including Director,
Police Communications,
Superintendent of Police
Communications, Deputy
Superintendent of Police
Communications, Police 135
Transport Officer and other
Officers in the Police
Transport Organization
equivalent to the category of
Deputy Superintendent of
Police.
(ii) Inspector of Police,
Sub-Inspector of Police,
Reserve Inspectors, Asst. 102
Reserve Inspectors and
equivalent ranks in the Police
Department
(iii) Head Constables and Police
Constables and equivalent
ranks in all the Branches of 100
the Police Department who
are required to be in Uniform
(b) ANTI-CORRUPTION BUREAU
(i) Deputy Superintendent of 90
Police
(ii) Inspector/ Sub-Inspector 68
(iii) Head Constable/ Police 45
Constable
6. PORT DEPARTMENT
(i) Port Conservator 169
(ii) Asst. Port Conservator 169
(iii) Wharf Supervisor 169
7. PRISONS DEPARTMENT
(i) Additional Inspector General 60*
(ii) Depty Inspector General 60*
* vide G.M.No.45187/ Prisons B/
98-3 Dt: 18-5-1999 of Home Dept.
(Lr.No.W3/8/95 Dt:3-12-98 & 19-
4-95 of I.G. of Prisons.
 185

Amount of
Sl.
Department/ Category Allowance Remarks
No
Rs. p.m.
(iii) Deputy Superintendent and
other Executive categories of
equivalent Rank who are 68
required to be in uniform.
(iv) Superintendent, Central 68
Prison
(v) Deputy Jailors and Jailors
(vi) Asst. Matron/ Chief Drill
Instructor/ Chief Law
Instructor/ Asst. Law 51
Instructor/ Asst.
Superintendent of Borstal
School, Case worker, Asst
Chief Drill Instructor
(vi) Chief Head Warder/ 100
w.e.f.
10-8-06
(vii) Head Warder 100
w.e.f.
10-8-06
(vi) Warder 100
w.e.f.
10-8-06
8. TRANSPORT DEPARTMENT
(i) Motor Vehicle Inspectors 100
w.e.f.
10-8-06
(ii) Asst. Motor Vehicle 100
Inspectors w.e.f.
10-8-06
(iii) R.T.O./ Secretary to R.T.A. 100
w.e.f.
10-8-06
9. WEIGHTS AND MEASURES DEPARTMENT
Maistries and Manual Assistants 34
 186

ANNEXURE IV

List of posts in Institute of Preventive Medicine for which Uniform

Allowance or supply of Uniform, if it is being made, and Uniform
Maintenance Allowance to be discontinued

S.No. Category

1. Senior Technical Assistant

2. Chemist
3. Asst. Bio-Chemist
4. Research Chemist
5. Chemical Assistant
6. Roneo Operator
7. Office Attender
8. Kamatis including Labour, Kamati Sealer
9. Sweeper
10. Thoti
11. Chowkidar
12. Scavenger
13. Photographer-cum-Typist
14. Jr. Boiler Attendant
15. Dhobi
16. Barber
17. Animal Attender
18. Vaccinator
19. Sr. Boiler Attendant
20. Boiler Mechanic
21. Asst. Sergeant
22. Sergeant
23. Animal Caretaker
24. Tailor
25. Sealer
26. Packer
27. Driver
28. Cleaner
29. Calf Watchman
30. Mali
31. Pharmacist
32. Mechanic
 187

33. Electrician
34. Helper
35. Carpenter
36. Sr. Mechanic
37. Mechanic Grade-I
38. Mechanical Supervisor

9. Risk Allowance:

11.55. Risk Allowance was sanctioned by the Government to certain

categories of employees belonging to Medical, Animal Husbandry, Police,
Fire Services, Ground Water, Mines and Geology and Printing departments
including A.P. Text Book Press. This allowance is sanctioned mainly on the
ground that the health of the employee will be affected due to attending to the
care of patients suffering from contagious diseases, due to continuous
exposure to hazardous chemicals and also due to radiation which is common
in Medical & Animal Husbandry Departments. In the case of exposure to
hazardous chemicals which is used in Printing activity there is scope for
deterioration of the health of the employees. In these cases, the deterioration
of health is not sudden but it is gradual and insidious. Unless sufficient
precautionary measures are taken by the employees their lives are at risk in
the long run.

11.56. In the case of employees belonging to Police and Fire Service

Departments, their duties are such that at any moment anything can happen to
their lives. In these cases the risk is not gradual but it is sudden. Similar is
the case of employees who are attending to Drilling operations in Ground
Water and other Engineering Departments.

11.57. There were several requests from various associations of the

employees to grant risk allowance stating that their duties are risk prone. At
the time of entering into service itself the employees know very well that the
duties attached to those posts are prone to risk. Therefore, risk to life is not a
new phenomenon which the employee would know only after joining the
service. Keeping in view the qualifications and nature of duties the scales of
pay of such risk prone posts are fixed by the Government. Therefore it is not
correct to allow any allowance exclusively meant to avoid Risk. Further, by
paying any amount to any employee whose duties are prone to risk, the risk to
life is not reduced. Additional allowance would result in increase in monthly
salary but may not eliminate the risk involved.

11.58. In the case of Police Department, there are separate

compensations in respect of those killed in extremist activities, violence by
anti-social elements. This compensation includes the payment of salary in
 188

full till the scheduled date of superannuation of the individual killed. This is
in addition to providing for compassionate appointment to the Kith & Kin of
the deceased employee. There is also a provision to pay Ex-gratia in the case
of employees who perish while discharging official duties.

11.59. In the case of employees belonging to Medical, Animal

Husbandry, and Printing Departments, whose exposure to infections and
hazardous chemicals is normal, it would be desirable to have a separate
insurance scheme to meet any eventuality that may occur at a later date. The
commission, therefore, suggests that a separate insurance scheme for such of
the employees whose duties are exposed to Risk in the long run, may be
formulated. Pending formulation of such a scheme, the Risk Allowance is to
be continued.

11.60. With a view to review the Risk Allowance now admissible, the
respective Heads of Departments were requested to furnish the nature of
duties of the posts involving risk. Taking into account the views of the
Heads of Departments and the nature of duties being performed by the
employees a revised list of categories of posts in various departments that
are eligible for sanction of risk allowance has been worked out and is
appended duly deleting certain posts and adding certain new categories.
The revised rates of risk allowance are also mentioned against each
category. The list was enlarged in the case of Animal Husbandry Department
based on consultations about risk exposure. Since special pay is separately
available for those working in Live Stock Farms and Training Centres, we did
not find it proper to include them in this list as it would amount to
compensating them twice.

ANNEXURE
Existing Recommended
Sl.
No. Department & Amount Department & Amount Remarks
Category Rs. Category Rs

ANIMAL HUSBANDARY DEPARTMENT

Dy. Director Dy. Director
1. (posted in the 250/- (Posted in Super 300/-
Hospital/ p.m Specialty Veterinary p.m
Dispensary/ Rural Hospital & Veterinary
Livestock Units) Poly Clinic)
 189

Existing
Recommended
Sl.
Remarks
No. Department & Amount Department & Amount
Category Rs. Category Rs.

2. Asst. Director 250/- Asst. Director 300/-

(posted in the p.m (Posted in the Super p.m
Hospital/ Specialty Veterinary
Dispensary/ Rural Hospital , Veterinary
Livestock Units) Poly Clinic, Veterinary
Hospital, Frozen Semen
Bull Station, Centralized
Semen Collection Center,
Veterinary Biological
Research Institute and
Animal Disease
Diagnostic Laboratory)
3. Veterinary Asst. Veterinary Asst. Surgeon
Surgeon 200/- (Posted in the Super 250/-
(posted in the p.m Specialty Veterinary p.m
Hospital/ Hospital , Veterinary
Dispensary/ Rural Poly Clinic, Veterinary
Livestock Units) Dispensary, Frozen
Semen Bull Station,
Centralized Semen
Collection Center,
Veterinary Biological
Research Institute and
Animal Disease
Diagnostic Laboratory)
4. Junior Veterinary Junior Veterinary
Officer, 100/- Officer, 125/-
(posted in the p.m (Posted in Rural Live p.m
Hospital/ Stock Units and
Dispensary/ Rural Veterinary Biological
Livestock Units) Research Institute)

5. Radiographers 125/- Radiographers working 150/-

working in all p.m in all Veterinary p.m
Veterinary Hospitals in the State
Hospitals in the
State
 190

Sl. Existing
Recommended Remarks
No.
Department & Amoun Department & Amoun
Category t Rs. Category t Rs.
6. Veterinary 75/- Veterinary Assistants 100/-
Assistants p.m (Posted in Rural Live p.m
working in the Stock Units, Super
Hospitals/ Specialty Veterinary
Dispensaries/ Rural Hospital , Veterinary
Livestock Units. Poly Clinic, Veterinary
Hospital , Veterinary
Dispensary, Veterinary
Biological Research
Institute, Frozen Semen
Bull Station and
Centralized Semen
Collection Center)

7. Live Stock 75/- Live Stock Assistant 100/-

Assistant p.m (Posted in Rural Live p.m
(working in the Stock Units, Veterinary
Hospitals/ Poly Clinic, Super
Dispensaries/ Rural Specialty Veterinary
Live Stock Units) Hospital and Veterinary
Biological Research
Institute)

8. Attender 65/- Lab Attender / Lab 80/-

p.m Assistant (Posted in the p.m
Super Specialty
Veterinary Hospital ,
Veterinary Poly Clinic,
Veterinary Hospital,
Veterinary Dispensary,
Rural Live Stock Units,
Veterinary Biological
Research Institute,
Animal Disease,
Diagnostic laboratory,
Frozen Semen Bull
Station and Centralised
Semen Collection
Centre)
 191

Existing Recommended
SI. Department &
Amount Amount Remarks
No. Category
Rs. Rs.

FIRE AND EMERGENCY SERVICES DEPARTMENT

1. Station Fire Officer 100/- 125/- p.m.

p.m
2. Leading Fireman 65/- p.m 80/- p.m.
3. Driver Operator 65/- p.m 80/- p.m.
4. Fireman 65/- p.m 80/- p.m.
5. Fireman-Carpenter 65/- p.m 80/- p.m.
6. Fireman Orderly/ 65/- p.m 80/- p.m.
Fireman Sentry
FOREST DEPARTMENT
Animal Keeper Zoo 80/- p.m.
-
GROUND WATER DEPARTMENT
This allowance will be
1. Driller 200/- 250/- p.m. applicable to those who
p.m actually work on Rigs, in
Mines and Geology and
other Engineering
Departments
2. Asst. Driller 130/- 150/- p.m.
p.m
3. Helper 75/- p.m 100/- p.m.

HEALTH & FAMILY WELFARE DEPARTMENT (M.N.J. CANCER HOSPITAL

AND RADIUM INSTITUTE, HYDERABAD)

1. Occupational
Therapist 55/- p.m 75/- p.m.

2. Theatre Assistant 55/- p.m 75/- p.m.

3. Technical
Assistant (T.B) 55/- p.m 75/- p.m.
4. Scavenger 55/- p.m 75/- p.m.
5. Lab Technician 55/- p.m 75/- p.m.
Gr.II
6. Lab Attendant 45/- p.m. 60/- p.m.
 192

Existing Recommended
SI. Department &
Amount Amount Remarks
No. Category
Rs. Rs.
7. Head Nurse/ - 100/- p.m. These allowances are
P.H.Nurse allowed on par with the
8. Staff Nurse 125/- p.m. similar posts in Medical
- Education Dept., since
9. Radiographer - 150/- p.m. these posts are included in
the list of posts for which
10. Dark Room Asst. - 125/- p.m. Risk allowance is
admissible as furnished by
11. X-Ray Attendant - 80/- p.m. the Director of Health.
12. Ward Boy 75/- p.m. This is in lieu of Risk
- allowance admissible to the
Ward Attendant which is
now recommended to be
discontinued.
13. Bio-Chemist 70/- p.m -
Nursing
14. 70/- p.m -
Superintendent
15. Mould Technician 55/- p.m -
Mould Technician
16. 55/- p.m -
(Jr.)
17. Curator 55/- p.m -
Health Sub- Recommended to be
18. 55/- p.m -
Inspector discontinued as these posts
19. M. Dresser 55/- p.m - are not included by the
20. Tutor 55/- p.m - Director of Health in the
21. Ward Attendant 55/- p.m - list of posts for which risk
22. Kamaton 55/- p.m - allowance is admissible
23. Lasker 55/- p.m -
24. Lift Attendant 55/- p.m -
25. Barber 55/- p.m -
26. Dental Technician 65/- p.m -
Lab Technician -
27. 65/- p.m
Gr.I
MEDICAL EDUCATION DEPARTMENT
Staff Nurse 100/- p.m
1. From 125/- p.m.
10-8-06
(G.O.233
T.A.
10-08-
06)

2. Nursing Tutor 75/- p.m 100/- p.m.

Grade-I
 193

Existing Recommended
SI. Department &
Amount Amount Remarks
No. Category
Rs. Rs.
Recommended to be
3. Lecturer in 75/- p.m - discontinued as this post is
Psychiatry Nursing not included by the D.M.E.
in the list of posts for
which risk allowance is
admissible
Head Nurse
4. 75/- p.m 100/- p.m.
P.H. Nurse
5. Chief Radiographer 100/- p.m 125/- p.m.
6. Radiographer 125/- p.m 150/- p.m.
Dark Room
7. 100/- p.m 125/- p.m.
Assistant
X-Ray /Dark Room
8. Attendant/ X-Ray
65/- p.m 80/- p.m.
Attendant
9. Mould Technician 65/- p.m 80/- p.m.
10. Physicist 135/- p.m 150/- p.m.
Lecturer in
11. Radiological 135/- p.m 150/- p.m.
Physics
Lecturer in Nuclear
Medicine
12. Techniques and 135/- p.m 150/- p.m.
Radiation Safety
Officer
13. Lab Technician 65/- p.m 80/- p.m.
Gr.I
Lab Technician
14. 55/- p.m 75/- p.m.
Gr.II
45/- p.m 60/- p.m.
15. Lab Attendant

INSURANCE MEDICAL SERVICES DEPARTMENT

1. Chief Radiographer 100/- p.m 125/- p.m.
100/- p.m
2. Staff Nurse (From 125/- p.m.
10-08-06)
3. X-Ray Technician 100/- p.m 125/- p.m.
Dark Room
Attendant/
4. 65/- p.m 80/- p.m.
X-Ray Attendant/
X-Ray Assistant
5. Radiographer 125/- p.m 150/- p.m.
Dark Room 100/- p.m
6. 125/- p.m.
Assistant
 194

Existing Recommended
SI. Department &
Amount Amount Remarks
No. Category
Rs. Rs.
Lab Technician
7. Gr.I 65/- p.m 80/- p.m.

Lab Technician
8. 55/- p.m 75/- p.m.
Gr.II
9. Lab Attendant 45/- p.m 60/- p.m.
AYUSH DEPARTMENT
1. X-Ray Attender 45/- p.m 60/- p.m.
On par with Dark Room
Dark Room
2. 65/- p.m 125/- p.m. Asst. in Medical Education
Assistant
Dept.
3. Radiographer 125/- p.m 150/- p.m.
4. Lab Technician 65/- p.m 80/- p.m.
Gr.I
Lab Technician
5. 55/- p.m 75/- p.m.
Gr.II
6. Lab Attendant 45/- p.m 60/- p.m.
7. Staff Nurse - 125/- p.m. On par with Nurse in
Medical Edn. Dept.

INSTITUTE OF PREVENTIVE MEDICINE, PUBLIC HEALTH LABS AND

FOOD (HEALTH) ADMINISTRATION DEPARTMENT
Lab Technician
1. 65/- p.m 80/- p.m.
Gr.I
Lab Technician
2. 55/- p.m 75/- p.m.
Gr.II
3. Lab Attendant 45/- p.m 60/- p.m.
DRUG CONTROL ADMINISTRATION DEPARTMENT
Lab Technician
1. 65/- p.m 80/- p.m.
Gr.I
Lab Technician
2. 55/- p.m 75/- p.m.
Gr.II
3. Lab Attendant 45/- p.m 60/- p.m.
MINES AND GEOLOGY DEPARTMENT
Explosive Van 100/- -
Post not in existence
Driver p.m
POLICE DEPARTMENT
200/-
1. Sub-Inspector 225/- p.m.
p.m
Reserve Sub- 200/-
2. 225/- p.m.
Inspector p.m
 195

Existing Recommended
Sl. Department &
Amount Amount Remarks
No. Category
Rs. Rs.
3. Asst. Sub-Inspector 125/- p.m 150/- p.m.
4. Asst. Reserve Sub-
125/- p.m 150/- p.m.
Inspector
5. Head Constable 125/- p.m 150/- p.m.
6. Police Constable 125/- p.m 150/- p.m.
7. Head Constable
125/- p.m 150/- p.m.
(Driver)
8. Police Constable
125/- p.m 150/- p.m.
(Driver)
9. Asst. Assault
200/- p.m 225/- p.m.
Commando
10. Senior Commando 125/- p.m 150/- p.m.
11. Asst. Chief Drill
200/- p.m -
Instructor
12. Asst. Law
200/- p.m -
Instructor
13. S.I.
200/- p.m -
Communication
Recommended to be
14. Band Master
200/- p.m - discontinued as the nature
(A.R.S.I)
of
15. A.S.I.,
duties performed are not
Communications/ 125/- p.m -
risk prone.
F.P.A.S.I.
16. Asst. Band Master
125/- p.m -
(A.R.S.I)
17. Asst. Drill
125/- p.m -
Instructor
PRINTING, STATIONARY AND STORES PURCHASE DEPARTMENT
1. Plate Printer Grade-
45/- p.m 60/- p.m.
I
2. Plate Printer Gr.II 45/- p.m 60/- p.m.
3. Offset Cameraman 45/- p.m 60/- p.m.
4. Asst. Manager 45/- p.m -
(formerly Foreman
(Process)
5. Process 45/- p.m -
Cameraman
Recommended to be
6. Junior Process 45/- p.m -
discontinued since the
Operator
machines are reported as
7. Rotary Stereo 45/- p.m -
not functioning
Caster
8. Asst. Process 45/- p.m -
Operator (formerly
Etcher)
 196

Existing Recommended
Sl. Department &
Amount Amount Remarks
No. Category
Rs. Rs.
9. Watt Man 45/- p.m -
Chromium
10. 45/- p.m -
Assistant
11. Wax Moulder 45/- p.m -
Graining Machine Recommended to be
12. 45/- p.m -
Man discontinued since the
13. Process Operator 45/- p.m - machines are reported as
14. Engraver 45/- p.m - not functioning

15. Chief Designer 45/- p.m -

16. Asst. Manager
(formerly Foreman 45/- p.m -
Chromium)

TEXT BOOK PRESS

1. Etcher 45/- p.m 60/- p.m.

Process
2. 45/- p.m 60/- p.m.
Cameraman
Process Operator
3. 45/- p.m 60/- p.m.
(BMS)
4. Asst. Cameraman 45/- p.m 60/- p.m.
Process
5. 45/- p.m 60/- p.m.
Cameraman (BMS)

Stereo Process
6. Hydro Machine 45/- p.m 60/- p.m.
Operator
7. Helio Printer 45/- p.m 60/- p.m.
8. Plate Printer 45/- p.m 60/- p.m.
Camera Assistant
9. 45/- p.m 60/- p.m.
(BMS)
10. Chief Cameraman 45/- p.m 60/- p.m.
WORK CHARGED ESTABLISHMENTS, DREDGERS WING
(Drainage Mechanical Division Irrigation Circle, Eluru).
1. Helper, Gr.II 4% of basic - Recommended to be
pay subject discontinued since it is
to maximum reported that the dredgers
of Rs. 300/- are not working /
2. Helper, Gr.I p.m functioning under the
control of Superintending
Engineer Irrigation Circle,
Eluru.
 197

Existing Recommended
Sl. Department &
Amount Amount Remarks
No. Category
Rs. Rs.
3. Asst. Dredger -
[formerly Dredger
Sarang Gr.III]
4. Watchman 4% of basic - Recommended to be
pay subject to discontinued since it is
5. Dredger Sarang maximum of - reported that the dredgers
Gr.II Rs.300/-p.m are not working /
6. Dredger Sarang - functioning under the
Gr.I control of Superintending
Engineer Irrigation Circle,
7. Operator Gr.III -
Eluru
8. Operator Gr.II -
9. Operator Gr.I -
10. Engine Operator -
Gr.III
11. Engine Operator -
Gr.II
12. Engine Operator
Gr.I
13. Electrician Gr.II
14. Electrician Gr.I
15. Tradesman Gr.II
(Welding & Note: This
Blacksmith) Risk
16. Tradesman Gr.I Allowance is
not
17. Tradesman Spl. admissible to Not indicated any amount
Grade or % of Basic Pay against
Drivers (HV
18. Fitter Grade-II & LV) these posts in
(Launch Driver) (Workshop & G.O.Ms.No.270 Fin.(TA)
19. Fitter Grade-I construction) - Department, dt.15-10-05.
(Workshop as they are Hence recommended to be
&Construction) eligible for discontinued
20. Mechanic Gr.II Special Pay.
21. Mechanic Gr.I
22. Work Inspector Gr.
IV
23. Work Inspector Gr.
III
24. Work Inspector
Gr.II
25. Operator Special
Grade
26. Mechanic Special
Grade
27. Assistant Foreman
 198

Existing Recommended
Sl. Department &
Amount Amount Remarks
No. Category
Rs. Rs.
Not indicated any amount
28. Foreman Note: This
or % of Basic Pay against
Risk
these posts in
Allowance is
G.O.Ms.No.270 Fin.(TA)
29. Work Inspector not
Department, dt.15-10-05.
Grade-I admissible to
Hence recommended to be
Drivers (HV
discontinued
& LV) -
30. Lasker (Workshop &
construction)
as they are
31. Mazdoor eligible for
Special Pay.

(b) Risk Allowance to the Employees working in Dam Galleries of

Srisailam Project:

11.61. The A.P. Projects & Constructions Employees & Mazdoor

Union represented that they were paid Risk Allowance at 10% of Basic pay
subject to a ceiling of Rs.150/- p.m. in RPS 1993 and Rs.250/- p.m. in RPS
1999 as per G.O.Ms.No.676 Finance (TA), dt.19-10-2004 and that they were
not paid the same allowance in RPS 2005. Therefore, they requested for
sanction of risk allowance to the workmen working in N.S.R.S. Srisailam
Project at the following points.

1. Penstock Bulk Head Gates

2. Cable ways
3. Foundation of Toe Gallery
4. Dam Gallery
5. ‘C’ Shaft

11.62. Since there was no recommendation by the PRC 2005 in this

regard further continuation orders were not issued by the Government. The
Anomalies Committee 2008, recommended sanction of Risk Allowance
@375/- p.m. in RPS 2005. But, Government did not issue orders on that
recommendation. The project workers also filed O.A. in APAT. The APAT
in its order dated 07-09-2009 directed the Government to consider the
recommendation of the Anomalies Committee for payment of Risk
Allowance to the applicants.

11.63. Since the nature of work in galleries is arduous the commission

feels that they should be paid Risk Allowance. The commission, therefore,
 199

recommends payment of Risk Allowance to the workmen working in the

Dam Galleries of the Srisailam Project at 6% of Basic Pay with a ceiling
of @ Rs.500/-p.m. In order to ensure that this allowance is not misused,
the Department should identify the staff who would be eligible to receive
this allowance and notify it in consultation with the Finance Department.
The Commission, further recommends that the Department should
examine similar requests for risk allowance if any, received from workers
of other Dams and if the conditions are similar to that of Srisailam Dam,
the Department should extend the benefit of Risk Allowance to the
employees working in those Dams also after obtaining specific orders in
consultation with Finance Department.

10. Conveyance Allowance to Certain categories:

11.64. Government have identified certain categories of posts the

holders of which are required to maintain a conveyance of their own i.e.
Motor car, / Motor Cycle / Bicycle and also allowed conveyance allowance at
different rates. All such cases are detailed in Annexure III of Manual of
Special Pay and allowances (compiled as on 31-08-1995). This is provided to
enable them to discharge their official duties within their jurisdiction which
requires moving from place to place for which they are not eligible for T.A. &
D.A. as per T.A. Rules. The rates contained in Annexure III of the Manual of
Special Pay Allowance were ordered to be increased on percentage basis as
per the recommendations of PRC 1999 & 2005 ( vide G.O.Ms.No.135 Fin
(TA) Department, Dt.30-08-99 & G.O.Ms.No.276 Fin (TA) Department,
dt.15-10-05).

11.65. Several requests were received by this Commission to sanction

them Conveyance Allowance and also to increase the existing rate of
Conveyance Allowance.

11.66. Pay Revision Commission 1999 while recommending to

increase the rate of allowance suggested to review the categories mentioned in
Annexure III of the Manual of Special Pays & Allowances duly pointing out
the inconsistencies in the amount of conveyance allowance admissible to
different categories within the same jurisdiction. Pay Revision Commission
2005 also reiterated the same view while suggesting the increased rates. But
no review seems to have been undertaken by Government.

11.67. With a view to examining the desirability of continuing the

allowance, the concerned Heads of Departments were requested to inform
whether any facility of providing conveyance at the cost of Government was
extended to any of the categories listed in Annexure III to the Manual of
Special Pays & Allowances. Basing on the replies furnished by the
 200

Departments the posts indicated in the statement enclosed are recommended

to be deleted.

11.68. After deleting those posts the rates of conveyance allowance

for the remaining categories are recommended to be increased as follows:

(i) For maintaining a Motor Car / Motor Cycle: 20% increase

over the existing rate rounded off to the nearest Ten Rupees
subject to a maximum of Rs. 850/- p.m.

(ii) For maintaining Bicycle: Rs.200/- p.m. uniformly.

11.69. In the case of requests for sanction of Conveyance Allowance

afresh to the new categories, the commission recommends that the concerned
administrative departments have to examine in consultation with Finance
Department duly explaining the necessity of regular touring within the
jurisdiction and the nature of conveyance to be maintained by them and then
issue orders fixing the rate of conveyance allowance admissible on par with
the officers of equivalent rank to whom such allowance is admissible.

11.70. This commission also suggests to review the necessity of

continuance of payment of conveyance allowance to the remaining categories
of posts in Annexure III of Manual of special pay and allowances in view of
the inconsistencies pointed out by P.R.C. 1999.

Statement showing the categories of posts for whom Conveyance

Allowance is recommended to be deleted from the list of posts detailed in
Annexure-III of Manual of Special Pay and Allowances.

1. Commercial Taxes Department

Commercial Tax Officer.

2. Economics & Statistics Department

Assistant statistical officer at Moffusil places.

3. Forest Department

a) Range Officer
b) Deputy Range Officer
c) Foresters Working in Range Offices
d) Forest Guard
e) Watcher-cum-worker
f) Reserve Watchers
 201

4 Handlooms & Textile Department

Attender working at Muffasil Offices.

5. Judicial Department

a) At Dt. Head Quarters – District additional sessions judge.

b) At Nellore –Special Judge for Anti Corruption Bureau Cases.

6. Labour Department

Bill Collector at Hyderabad.

7. Medical & Health Department

One Attender in each medical institution at Hyderabad.

8. Municipal Administration Department C.

(i) Selection Grade Municipal Commissioner

(ii) Special Grade Municipal Commissioner
(iii) First Grade Municipal Commissioner
(iv) Second Grade Municipal Commissioner
(v) Third Grade Municipal Commissioner

9. Police Department

a) At Hyderabad

C.I.D./Special Armed Reserve/City Commissioner of Police/

Intelligence / Special Police.

(i) Additional Superintendent

(ii) Deputy Superintendent of Police
(iii) Inspector of Police
(iv) Reserve Inspector of Police

b) City Commissioner of Police

Superintendent of Police.
 202

c) Civil Defence & Emergency Relief Training Institute

Hyderabad.

(i) Principal
(ii) Inspector of Police

11. Conveyance Allowance to blind and Physically handicapped

employees:

11.71. Based on the recommendation of PRC 2005, orders were issued

in G.O.Ms.No.276 Fin (TA) Department, Dt.15-10-05 continuing the rate of
this allowance as 10% of basic pay subject to the maximum of Rs.500/- p.m.
Again, based on the recommendation of OMC 2006, orders were issued in
G.O.Ms.No.142 Fin (PC-I) Department, Dt. 06-06-2006 continuing the rate of
this allowance as 10% of basic pay subject to the maximum of Rs.650/-p.m.
Several requests were made to increase this allowance substantially. The
commission recommends the continuation of this allowance at 10% of
basic pay subject to a maximum of Rs.900/- p.m.

12. Conveyance charges to the staff of Protocol Department:

11.72. The Department of Protocol requested for sanction of fixed

conveyance allowance per month to the staff of the Department on the ground
that there are no sufficient Government Vehicles or hired Vehicles to go to
the Airport/ Railway Station to receive the VIPS, Guests and other dignities
and also to see them off. They therefore represented that they are going to
the Airports etc. by engaging private conveyances at their own cost.

11.73. Normally whenever any official work is entrusted to any staff

member conveyance is being provided by the department i.e., either a
Government Vehicle or a hired Vehicle. However, at times a situation may
arise that due to shortage of vehicles, the staff may have to reach the
destination by travelling in a private conveyance. In such cases it is
reasonable that the conveyance charges actually spent by them are
reimbursed. The commission, therefore, recommends that the staff of
Protocol Department who are deputed to attend to the VIPs, may be
allowed the auto charges actually spent by them subject to the maximum
of Rs.400/-p.m. in cases where they are not provided with a Government
Conveyance. (Government Vehicle or Hired Vehicle).

13. Conveyance Charges to the staff of cultural affairs Department:

11.74. The staff members of Cultural affairs Department requested to

sanction Programme Transport Allowance on the ground that they have to
stay in the office upto mid night when ever Cultural Programmes are
 203

conducted by the Department and that they have to incur huge expenditure to
reach their residences on the ground that they are not provided with
Government vehicles.

11.75. Normally beyond 9-30 p.m. there will be inadequate public

Transport and therefore it will be very difficult for the Staff Member to reach
their residences. The Commission, therefore, recommends payment of
Conveyance Charges not exceeding Rs. 50/- to the staff members who are
actually held up due to the Programme organized by the Department on
any day, provided they are actually retained beyond 9-30 p.m. subject to
the condition that the payment of these charges is certified by the
superior officer.

14. E.S.I. Allowance:

11.76. This allowance is allowed to the staff in the I.M.S. Department

as an incentive in the beginning to join this Department from Department of
Medical & Health as they were originally recruited for Health Department
and could even join the Teaching stream if they had continued with that
Department. The Commission feels that there is no need to pay this allowance
to the employees who are recruited by the Department exclusively to work in
this Department or got absorbed in it. In view of that the Commission
recommends to review the necessity to continue this allowance. Pending
review and decision by Government, the Commission recommends to
continue this allowance at the existing rates only.

15. Ration Allowance:

11.77. This is an allowance of 2nd world war vintage and stated to be in

force from 1944. This is paid to the Nursing personnel to meet their
nutritional requirements. In the case of staff belonging to Grey Hounds and
Special Intelligence Branch of the Police Department the Government granted
separate rate of this allowance.

11.78. The commission is of the view that this allowance was primarily
intended to provide additional nutritional support for ANMs, Nurses and
Health Visitors etc. who are called upon to perform arduous duties at all times
of the day and night and are directly connected with patient care. Applying
this Principle, we do not find any justification for continuing this allowance
for the following category of posts.

Medical Education Department:

1. Lecturer in Psychiatry Nursing

2. Principal & Professor of Nursing
 204

3. Public Health Nurse

4. Lecturer
5. Nursing Tutor Gr.II
6. Assistant Professor (Nursing)
7. Nursing Tutor Gr.I
8. Medico Social Worker Gr.I
9. Medico Social Worker Gr.II

11.79. The commission further feels that there is no need to continue to

pay this allowance to the Radiographer, Chief Radiographer and House
Keeper Gr.II belonging to Medical Education Department in view of the
nature of duties they are supposed to perform. Similarly, there are no valid
reasons for continuing to pay this allowance to the Dietician belonging to
Insurance Medical Services Department. As such the commission
recommends to discontinue the payment of this allowance to the above
categories.
11.80. There were several representations from the employees to grant
this allowance. Out of that the commission feels that it is reasonable to allow
this allowance to Auxiliary Nurse Midwives belonging to AYUSH
Department on par with ANMs on the Allopathy side. In respect of other
categories of posts for which this allowance is admissible the commission
recommends to increase the existing rate by 50% in respect of staff belonging
to Medical Departments. In the case of staff of Grey Hounds and Special
Intelligence Branch Personnel of Police Department, the commission
recommends to increase the existing rate of Rs.360/- p.m to Rs.450/- p.m.

11.81. Basing on the above recommendations a statement showing the

existing rate of Ration Allowance and the revised rates recommended is given
in the following Annexure appended.

Ration Allowance
ANNEXURE
Existing
Sl. Revised Amount
Department & Category Amount
No. Rs.
Rs.
1 HEALTH & FAMILY WELFARE DEPARTMENT
(i) A.N.M. MPHA (F) 112.50/-p.m. 170/-p.m.
(ii) Health Visitor 112.50/-p.m. 170/-p.m.
(iii) Public Health Nurse 150/-p.m. 225/-p.m.
2 MEDICAL EDUCATION DEPARTMENT
(i) Staff Nurse 150/-p.m. 225/-p.m.
(ii) Nursing Supdt. Gr.I 150/-p.m. 225/-p.m.
(iii) Nursing Supdt. Gr.II 150/-p.m. 225/-p.m.
(iv) Head Nurse 150/-p.m. 225/-p.m.
 205

Existing
Sl. Revised Amount
Department & Category Amount
No. Rs.
Rs.
AYUSH DEPARTMENT
3
(FORMERLY INDIAN MEDICINE & HOMEOPATHY)
(i) Staff Nurse 150/-p.m. 225/-p.m.
(ii) Senior Sister 150/-p.m. 225/-p.m.
(iii) A.N.Ms. - 170/-p.m.
4 INSURANCE MEDICAL SERVICES DEPARTMENT
A.N.Ms. 112.50/-p.m. 170/-p.m.
5. GREY HOUNDS WING OF POLICE DEPARTMENT
(i) Group Commander 360/-p.m. 450/- p.m.
(ii) Squadron Commander 360/-p.m. 450/- p.m.
(iii) Assault Commander/ Deputy
Supdt.of Police 360/-p.m. 450/- p.m.
(Communications)
(iv) Deputy Assault Commanders/ 360/-p.m. 450/- p.m.
Inspector (Communications)
(v) Asst. Assault Commander/ Sub-
Inspector & Asst. Sub-Inspector 360/-p.m. 450/- p.m.
(Communications)
(vi) Sr. Commandos/ Head Constable
(Communications)/ Head 360/-p.m 450/- p.m.
Constable (Dog Squad)
(vii)Jr. Commandos/ Police Constable
(Communications/ FE Dog Boys/ 360/-p.m. 450/- p.m.
Police Constable (Dog Squad)
SPECIAL INTELLIGENCE
6. BRANCH PERSONNEL OF 360/-p.m. 450/- p.m.
POLICE DEPARTMENT

16. Night Duty Allowance:

11.82. This allowance is sanctioned for certain categories of employees

in Medical and Printing Departments who are required to work in the night to
meet the cost of bread, tea / coffee etc. The existing rate is Rs.15/- per night
as per the orders issued in G.O.Ms.No. 268 Fin (TA) Dept., dt.15-10-2005
based on the recommendation of P.R.C. 2005.

11.83. It is recommended to increase the rate to Rs. 25/- per night.

11.84. The list of posts for which this allowance is admissible at

present is reviewed and it is recommended to extend this allowance to the
following categories also.

1. Staff Nurse
2. A.N.M belonging to AYUSH Department
3. F.N.O / M.N.O.
 206

4. Pharmacist- Grade II belonging to all Medical Departments.

5. Radiographer / Dark Room Assistant belonging to all Medical
Departments.

11.85. In respect of Printing Departments, the categories of posts for

which this allowance is admissible are specified.

11.86. It is recommended to delete the following posts from the list of

posts for which this allowance is admissible at present.

1. Nursing Tutor Grade I /

Grade II
2. Medico Social Worker Belonging to Medical Education Dept.
3. Health Visitor

11.87. A revised and comprehensive list of posts for which this

allowance is admissible is appended.

11.88. The claim for this allowance shall be supported by a certificate

of the Drawing officer to the effect that the individual actually attended to the
night duties on the dates for which the claim is made.

Night Duty Allowance

APPENDIX

Sl.
Category of the post
No.
1. HEALTH & FAMILY WELFARE DEPARTMENT
(i) A.N.Ms/ Maternity Assistants (M.P.H.S.(F))
(ii) Staff Nurse/ M.P.H.A.(F)/ P.H. Nurse
iii) Head Nurse
iv) Pharmacist Grade II
v) Radiographer / Dark Room Assistant
2. MEDICAL EDUCATION DEPARTMENT
(i) Nursing Superintendent Gr.I/ Gr.II
(ii) M.P.H.As (F)/ A.N.Ms.
iii) P.H. Nurse
(iv) Staff Nurse
(v) Head Nurse
(vi) Chief Radiographer
(vii) Pharmacist Grade II
(viii)Radiographer/Dark Room Assistant
 207

SI.
Category of the Post
No.
3. INSURANCE MEDICAL SERVICES DEPARTMENT
(i) Staff Nurse
(ii) Head Nurse
(iii) Pharmacist Grade II
(iv) Radiographer/Dark Room Assistant
4. AYUSH DEPARTMENT
i) Staff Nurse
II) A.N.M
III) Nursing Orderly (FNO/MNO)
iv) Pharmacist Grade II

(v) Radiographer/Dark Room Assistant

5. PRINTING, STATIONERY & STORES PURCHASE

DEPARTMENT
i) Plate Printer Grade I
ii) Plate Printer Grade II
iii) Offset Cameraman
6. TEXT BOOK PRESS
i) Etcher
ii) Process Cameraman
iii) Process Operator (BMS)
iv) Assistant Cameraman
v) Process Cameraman (BMS)
vi) Sterio Process Hydro Machine Operator
vii) Helio Printer
viii) Plate printer
ix) Camera Assistant (BMS)
x) Chief Cameraman

7. MUNICIPAL CORPN., VISAKHAPATNAM

(i) Watchman/ Electrical Inspector/ pump House Driver

17. Emergency Health Care Allowance:

(a) Doctors belonging to Medical & Health Services:

11.89. The State, Government, in G.O.Ms.No.387, HM&FW (A-2)

Department, dated:27/10/2008 issued orders sanctioning Emergency Health
Care Allowance at Rs.3000/- p.m. to all the non-teaching Doctors belonging
to A.P. M&H Services in the State.

11.90. The Government doctors Association requested to continue this

allowance in the proposed revision of scales. The Commission, agrees to the
request of the Association and accordingly recommend to continue the
 208

payment of this allowance at the same rate of Rs.3000/- p.m. even in the
revised scales also.

(b) Doctors belonging to Ayush Department:

11.91. The Doctors belonging to Ayush Department requested to

extend to them the Emergency Heath Care Allowance as is allowed to their
counter parts belonging to the Medical & Health services at the same rates.

11.92. The Commission, after considering all factors, is convinced that

the Doctors belonging to this department are not under as much pressure as in
the case of Allopathy Doctors. However, in view of the patient Care being
attended to by them, the Commission recommends payment of Emergency
Health Care Allowance to the Teaching & Non-Teaching Doctors
belonging to Ayush Department @ Rs.1000/- p.m.

(c) Doctors belonging to Insurance Medical Services Department:

11.93. Government vide G.O.Ms.No.107 L.E.T. & F(IMS)

Dept.,dt:24/11/09, extended the Emergency Health Care Allowance @
Rs.3000/- p.m. on par with Non-Teaching Doctors belonging to Medical &
Health Services.

11.94. The Government Doctors Association requested this allowance

in the proposed revision of scales. The Commission, agrees to the request of
the Association and accordingly recommends to continue the payment of this
allowance at the same rate of Rs.3000/- p.m. in the revised scales also.

(d) Veterinary Doctors belonging to the Animal Husbandry Dept.:

11.95. The Veterinary Doctors belonging to the Animal Husbandry

Department also requested for the payment of Emergency Health Care
Allowance. The Commission knows that the Doctors belonging to M&H
Department attend to the cases of human beings while the Veterinary Doctors
belonging to A.H. Department attend to the cases of animals. However, the
demands on the Veterinary Doctors while treating the animals are not as
exacting and pressing as those relating to human beings. The Commission is
of the view that Veterinary Doctors need to be compensated for this service.
Accordingly, the commission recommends payment of Emergency Health
Care Allowance to the Non-Teaching Veterinary Doctors belonging to
Animal Husbandry Department @ Rs.1000/- p.m.
 209

18. P.G. Degree and P.G. Diploma Allowance:

(a) Doctors belonging to Medical & Health Services:

11.96. The State, Government, in G.O.Ms.No.387, HM&FW (A-2)

Department, dated:27/10/2008 issued orders sanctioning the P.G. Degree
Allowance and P.G. Diploma Allowance @ Rs.1500/- p.m. and Rs.1000/-
p.m. respectively to all the non teaching doctors belonging to Medical &
Health Services in the State.

11.97. The Government doctors Association requested to continue

these allowances in the proposed revision of scales. The Commission, agrees
to the request of the Association and accordingly recommend to continue
the payment of these allowances at the same rates in the revised scales.

(b) Doctors belonging to Ayush Department:

11.98. The Doctors belonging to Ayush Department requested to

extend to them the P.G. Degree Allowance @ Rs.1500/- p.m. as is allowed to
their counter parts belonging to the Medical & Health service.

11.99. The Commission, after considering all factors, is convinced that

the Doctors both teaching & non teaching belonging to this department be
made eligible for the payment of P.G. Degree Allowance. The Commission,
therefore, recommends the payment of P.G. Degree Allowance to all the
Doctors, both teaching & non teaching, belonging to Ayush Department
@ Rs.750/- p.m.

(c)Doctors belonging to I.M.S. Department:

11.100. Government vide G.O.Ms.No.107 L.E.T. & F(IMS) Dept.,

dt:24/11/09, extended the P.G. Degree Allowance @ Rs.1500/- p.m. & P.G.
Diploma Allowance @ Rs.1000/- p.m. on par with Non-Teaching Doctors
belonging to Medical & Health Services.

11.101. The Government Doctors Association requested to continue

these allowance in the proposed revision of scales. The Commission, agrees
to the request of the Association and accordingly at the same rates of
Rs.1500/- p.m. for P.G. Degree and Rs.1000/- p.m. for P.G. Diploma in the
revised scales also.

(d) Veterinary Doctors belonging to Animal Husbandry Department:

11.102. The doctors belonging to the Animal Husbandry Department

also requested for the payment of P.G. Degree & P.G. Diploma allowance.
 210

Possession of higher degree / diploma qualification will enable them to give

better treatment of the animals. As such the commission recommends to
extend the P.G. Degree allowance at Rs.750/- p.m. and P.G. Diploma
allowance at Rs.500/- p.m. to the Veterinary Doctors belonging to Animal
Husbandry Department.

19. Non Private Practice Allowance:

(a) Doctors belonging to Medical & Health Department (Allopathic):

11.103. Annexure XIV of the Manual of Special Pays and Allowances

contains the list of Medical Officers who shall not engage themselves in
private practice. Subsequently it was reviewed and revised orders were issued
by Government in G.O.Ms.No.119 H.M. & F.W. Department, dt.13-04-2006
specifying the doctors who are prohibited from doing Private Practice. Hence,
the holders of the posts specified in Annexure to the G.O.119, dated:
13/4/2006 are eligible for the payment of N.P.P.A.

11.104. As per the orders issued in G.O.Ms.No.318, HM & FW (A2)

Department, dated 14-08-2001 the following are the rates of N.P.P.A. to the
doctors in Medical & Health Department who were appointed prior to 27-07-
1987.

Category Amount
Civil Surgeons Rs.750/- p.m.
Dy. Civil Surgeon Rs.600/- p.m.
Civil Asst. Surgeon Rs.500/- p.m

11.105. P.R.C.2005 recommended the enhancement of the rate of the

above allowance as follows:

1. Civil Surgeons Rs.1000/-p.m.

2. Dy. Civil Surgeons Rs.750/- p.m.
3. Civil Asst. Surgeons Rs.600/- p.m.

11.106. The Medical and Health Department informed that orders were
not issued based on the recommendation of PRC 2005.

11.107. The Allopathic Doctors belonging to Medical and Health

Services requested for the N.P.P.A. @25% of basic pay on par with Doctors
in Government of India or to enhance the amount of N.P.P.A. substantially.

11.108. It is noticed that Government issued orders in G.O.Ms.No.387,

H.M.&F.W.(A2) Department, dated:27/10/2008 sanctioning Emergency
 211

Health Care Allowance at Rs.3000 p.m. to the Non-Teaching Doctors

belonging to A.P. Medical & Health Services in the State.

11.109. Emergency Health Care Allowance, it is presumed, is for

availability of the Doctors at all times to attend to patients.

11.110. Consequent on sanctioning Emergency Health Care Allowance

to all the Non-Teaching Doctors, the Commission is convinced that there is
no need to continue to pay the Non Private Practice Allowance to those Non-
Teaching Doctors who were prohibited from undertaking private practice as
detailed in the annexure to G.O.Ms.No.119 H.M.&F.W.(A2) Department,
dated:13/4/2006. However, if for any of the categories of Doctors to whom
the Emergency Health Care Allowance is not admissible and if they are
prohibited to do Private Practice as per G.O.Ms.No.119 H.M.&F.W.(A2)
Department, dated:13/4/2006 there is need to enhance the rate of N.P.P.A.
Keeping in view the inflation the Commission recommends the
enhancement of rates of N.P.P.A. as indicated below.

(i) Doctors in the category of Civil Assistant

Surgeons -- Rs.800/- p.m.
(ii) Doctors in the category of Deputy Civil
Surgeons -- Rs.1000/- p.m.
(iii) Doctors in the category of Civil Surgeons -- Rs.1200/- p.m.
and above

11.111. It is once again re-iterated that the N.P.P.A. at the above rates is
to be allowed only to such of the Doctors who are not eligible for Emergency
Health Care Allowance as sanctioned in G.O.Ms.No.378 H.M.&F.W.(A2)
Department,dated:27/10/2008 and who were prevented from undertaking
private practice as specified in Annexure to G.O.Ms.No.119 H.M.&F.W.(A2)
Department, dated:13/4/2006.

11.112. Since Medical Colleges Doctors are covered by UGC pay scales
all the Medical Professionals who are in receipt of UGC pay scales would no
longer be eligible for N.P.P.A.

(b) Doctors belonging to Ayush Department:

11.113. In G.O.Ms.No.254, M.&H. Department, dated:29/4/1983,

G.O.Ms.No.256,H.M&H Department, dated:29/4/1983 and in
G.O.Ms.No.450, H.M&H Department, dated:28/9/1987 orders were issued
imposing a total ban on Private Practice by the Government Doctors in the
Andhra Pradesh Indian Medicine and Homeopathy Services. Consequently, in
G.O.Ms.No.454,HM&FW(I-2) Department, dt:1/10/1987, orders were issued
by the Government for the payment N.P.P.A. to all the categories of the
 212

Doctors in the A.P. Indian Medicine Service and A.P. Homeopathy Service at
the rates indicated below:

(1) Additional Directors (Ayurveda, -- Rs.1020/- p.m.

Unani and Homeopathy)
Principals (Ayurveda, Unani &
Homeopathy) and Professors
(PG. Units, Ayurveda and Unani).

(2) Deputy Directors (Ayurveda, Unani -- Rs.880/- p.m.

and Homeopathy) Regional Deputy
Directors (Ayurveda, Unani and
Homeopthy), Research Officers
(Ayurveda, Unani and Homeopathy),
Superintendents of the Hopitals
(Ayurveda, Unani and Homeopathy),
Chief Superintendent, Indian
Medicine Pharmacy (Ayurveda, Unani)
Herbarium, Superintendent,
Inspector, Board of Indian Medicine,
Resident Medical Officers (Ayurveda,
Unani), chief Medical Officers/ Professors
(Ayurveda, Unani and Homeopathy) and
Readers (PG. Unit-, Ayurveda, Unani).

(3) Senior Medical Officers/ Assistant -- Rs.750/- p.m.

Professors (Ayurveda, Unani and
Homeopathy), Ayurveda Assistant, Unani
Assistant, Museum Assistant / Lecturers,
P.G. Unit (Ayurveda and Unani),
Assistant Research Officer (Homeopathy)
and Medical Officer for Pharmacy and
Herbal Garden.

(4) Medical Officers / Lecturers (Ayurveda, -- Rs.630/- p.m.

Unani and Homeopathy), Technical
Assistants (P.G.Unit- Ayurveda, Unani),
Medical Officer, Drugs Inspector (Ayurveda,
(Ayurveda, Unani and Homeopathy).

11.114. However, in G.O.Ms.No.25,HM&FW (I-2) Department,

dated:16/1/1988 the orders issued in G.O.No.454, dated:1/10/1987 were kept
in abeyance from 1-1-1998. Therefore, the Ayurvedic Doctors are now
requesting to sanction N.P.P.A. on par with Allopathic Doctors.
 213

11.115. Information is not made available to this Commission, on

whether the orders issued in G.O.Ms.No.25, dated:16/1/1988 were
subsequently cancelled or not. Since the Ayurvedic Doctors are not now
drawing N.P.P.A. it is evident that the orders of abeyance are not cancelled
but are still in force.

11.116. This Commission recommended elsewhere in this report, for the

payment of Emergency Health Care Allowance to the Doctors belonging to
Ayush Department separately. In view of that the Commission feels that
there is no need to pay any N.P.P.A. separately in addition to Emergency
Health Care Allowance to the doctors of this department.

(c)Doctors belonging to Insurance Medical Services Department:

11.117. As per G.O.Ms.No.251 L.E&T.E. Department, dated:1/10/1987,

N.P.P.A. is admissible to the Doctors belonging to I.M.S. Department, as
shown below w.e.f. 1-10-1987.

Sl.
Category Amount
No.
1. Director @ Rs.1230/ p.m.
2. Special Grade Civil Surgeon @ Rs.1070/-p.m.
3. Deputy Directors/ Civil Surgeon Specialists @ Rs.980/- p.m.
including Civil Surgeon (R.M.Os)
4. Deputy Civil Surgeon (including Junior @ Rs.800/- p.m.
Specialists and Dentals)
5. Civil Asst. Surgeons / Dental Asst. @ Rs.690/- p.m.
Surgeon

11.118. In G.O.Ms.No.119 H.M. & F.W. Dept., dt:13/4/2006 orders

were issue permitting all the Doctors, except those specified in the annexure
to the G.O., belonging to Medical & Health Services to engage themselves in
private practice. In G.O.Ms.No.2135 L.E.T. & F (IMS) Dept., dt:20/9/2007
orders were issued permitting all the Doctors, except those who are working
in administrative posts, belonging to Insurance Medical Services to engage
themselves in private practice. Therefore, N.P.P.A. is admissible at present at
the above rates to the Doctors belonging to this Department who are working
in administrative posts. However, if any category is eligible to draw
Emergency Health Care Allowance that category should not draw NPPA.
Those who are not eligible to draw Emergency Health Care Allowance they
may draw NPPA at the existing rates.
 214

(d) Veterinary Doctors belonging to Animal Husbandry Department:

11.119. At present the Veterinary Doctors are not eligible for the
payment of N.P.P.A. since there are no orders preventing them from doing
Private Practice. As long as a ban is not imposed on undertaking Private
Practice the question of payment of N.P.P.A. to Veterinary Doctors does not
arise. Moreover the commission has recommended Emergency Health Care
Allowance which is a new allowance allowed to this category of employees.

20. Academic Allowance:

(a) Doctors belonging to Medical & Health Services:

11.120. Orders were issued in G.O.Ms.No. 411 HM & FW (A2) Dept.,

dt: 5-11-2001 sanctioning academic allowance to the Doctors belonging to
Medical & Health Services at the rates shown below against their respective
categories.

1) CAS/Asst.Prof./ Dental Asst.Surgeon …… Rs.300/-p.m.

2) Dy. CS/Asso.Prof./Dental Dy.Surgeon …… Rs.400/- p.m.
3) CS/Prof./CS (Dental)/Prof. (Dental) …… Rs.500/- p.m.
4) Spl.Gr.CS/SG Prof./SG Prof. (Dental) …… Rs.600/-p.m.
5) Regl.Dir./Addl.Dir./Prl. Dental college …… Rs.700/-p.m.
6) Director of Health/D.M.E …… Rs.800/-p.m.

11.121. The purpose for which this allowance was sanctioned was not
indicated in the above G.O. However, in their representation the A.P. Govt.
Doctors Association stated that it was sanctioned for updating the growing
knowledge in Medical field and to keep them abreast of the latest
developments.

11.122. The Doctors working in Teaching Colleges were already

allowed U.G.C. Scales of pay in the year 2006. Hence, the commission
recommends discontinuance of this allowance to those who are governed by
UGC Scales of pay. The Non-teaching Doctors also are expected to improve
their knowledge in the Medical field so that they can treat the patients more
efficiently. The Commission, therefore, feels that it is necessary to
continue the payment of this allowance, and recommends payment of this
allowance at the existing rates to the Non-teaching Doctors.

(b) Doctors belonging to Ayush Department:

11.123. The A.P. Ayurvedic Medical Officers Association requested to

extend this allowance to the Medical Officers belonging to their Department.
 215

11.124. The commission feels that the total package of emoluments to

the Ayush Doctors has been increased substantially. There is, therefore, no
need to consider additional allowances of this nature.

(c) Doctors belonging to I.M.S. Department:

11.125. The A.P. Govt. Doctors Association requested to extend this

allowance to the Doctors belonging to Insurance Medical Services
Department

11.126. The Doctors of this Department are eligible for E.S.I.

Allowance exclusively. Further Government extended Emergency Health
Care Allowance @ Rs.3000/- p.m. and P.G. Degree Allowance at Rs.1500/-
p.m. and P.G. Degree Allowance at Rs.1000/- p.m. to these Doctors also.
Hence, the Commission feels that there is no need to extend the Academic
Allowance to the Doctors in I.M.S. Department.

d) Veterinary Doctors belonging to Animal Husbandry Dept.:

11.127. The Veterinary Doctors of Animal Husbandry Department

requested to extend the academic allowance to them also.

11.128. The commission feels that the total package of emoluments to

the Veterinary Doctors has been increased substantially. There is, therefore,
no need to consider additional allowances of this nature.

21. Tribal Allowance:

(a) Doctors belonging to Medical & Health Services:

11.129. Doctors working in Tribal areas have earlier represented for the
sanction of an allowance to meet the extra costs associated with living in
those areas. A task force committee constituted by the Government examined
the matter. Based on its report, orders were issued in G.O.Ms.No. 411 HM &
FW (A2) Dept., dt: 5-11-2001 increasing the rate of Tribal allowance from
Rs.1500/- p.m. to Rs.2000/- p.m. to the male Doctors working in Tribal areas
including Doctors working on Contract basis. Lady Doctors working in Tribal
Areas are allowed an additional amount of Rs.500/- p.m. (i.e., Rs.2500/-
p.m.).

11.130. The A.P. Government Doctors Association requested to enhance

this amount to Rs.7500/- p.m. to the Doctors working in tribal areas and to
Rs.10,000/- p.m. to the Doctors working in remote tribal areas.
 216

11.131. The basis for classification of tribal areas and remote tribal
areas is neither indicated by the Association nor is available with this
Commission. In addition to this allowance, the Doctors are eligible for Rural
Allowance also who are working in the P.H.Cs and C.H.Cs. located in rural
areas. Apparently the Doctors working in the tribal areas are not eligible for
Rural Allowance in addition to Tribal Allowance since the tribal areas are
located only in rural sector. Since the orders increasing the Tribal Allowance
were issued in the year 2001 and in view of the escalation of the cost of living
since then, the Commission, recommends an increase of Rs.500/- p.m.
uniformly i.e., at Rs.2500/- p.m. to the Male Doctors and at Rs.3000/-
p.m. to the Lady Doctors working in the tribal areas.

11.132. The Commission also recommends that the Rural Allowance

sanctioned in G.O.Ms.No. 411 HM & FW (A2) Dept., dt: 5-11-2001 is not
admissible to such of the Doctors to whom this Tribal Allowance is
admissible. It is further recommended that the Special Compensatory
Allowance (ranging from Rs.300/-p.m. to Rs.825/-p.m. in PRC 2005
scales) admissible to the employees working in Agency areas/ Hill
Stations as per the orders issued in G.O.Ms.No.6, Finance (TA) Dept.,
dt:12/1/2007, (the rates of which are recommended to be increased by this
Commission elsewhere in the report) should also be not admissible to the
Doctors to whom this Tribal allowance is admissible as it would amount
to compensating them twice/ thrice respectively.

(b) Doctors belonging to Ayush Department:

11.133. The A.P. Ayurvedic Medical Officers Association requested to

extend this allowance to its members working in tribal areas.

11.134. As the doctors belonging to Ayush Department are eligible for

the payment of special compensatory allowance in tribal areas the
commission feels that this tribal allowance need not be extended to them.

22. A. Rural Allowance:

(A) Doctors belonging to Medical & Health Services:

11.135. Based on the report of the Task Force Committee constituted by

Government, orders were issued in G.O.Ms.No. 411 HM & FW (A2) Dept.,
dt: 5-11-2001 sanctioning Rural Allowance @ Rs.1000/- p.m.as an incentive
to the Doctors working in PHCs and CHCs. The Lady Doctors were allowed
were allowed this allowance at Rs.1500/- p.m. in the same G.O. While issuing
the above orders, the then existing rate of Rural Allowance already admissible
to C.A.S. / D.C.S of the M & H Departments (Allopathy) @Rs.200/- p.m. (as
ordered in G.O.Ms.No.144, Finance & Planning (FW TA)Dept.,dt:30/8/1999
 217

based on the recommendation of PRC 1999) was not taken into account.
Based on the recommendation of PRC 2005 orders were issued In
G.O.Ms.No.268, Finance (TA) Department, dt:15/10/2005, enhancing the rate
of this allowance from Rs.200/- p.m. to Rs.350/- p.m. to the Civil Assistant
Surgeons and Deputy Civil Surgeons belonging to Medical & Health
Department for the period they work in the Hospitals / Dispensaries located in
rural areas. At the time of this recommendation by PRC 2005 the orders
issued in G.O. No.411 grating Rural Allowance separately was not taken into
account. As such the Commission elsewhere recommended in the report to
discontinue the payment of Rural Allowance sanctioned in G.O.Ms.No.268,
Finance (TA) Department, dt:15/10/2005.

11.136. The A.P. Government Doctors Association requested

enhancement of this allowance sanctioned in G.O.No.411, dtd.5-11-2001,
considerably on the ground that it will encourage the Doctors to work in rural
areas.

11.137. Since, the rate of Rural Allowance sanctioned in

G.O.Ms.No.411, was fixed in the year 2001 and in view of the escalation of
the prices since then, the Commission recommends to increase the rate of this
allowance to Rs.1500/- p.m. to the male Doctors and at Rs.2000/- p.m. to the
Lady Doctors working in PHCs and CHCs located in non tribal rural areas.
The Commission again reiterates that if the P.H.Cs / C.H.Cs are located
in Tribal Areas only the Tribal Allowance is admissible but not this
Rural Allowance and Special Compensatory Allowance separately.

(b) Doctors belonging to I.M.S. Department:

11.138. The A.P. Government Doctors Association requested to extend

Rural Allowance to the Doctors belonging to Insurance Medical Services
Department also. It is ascertained from the Department that there are about 36
Dispensaries located at rural areas in the State. The doctors of IMS
Department are governed by a separate set of allowances and there is no
need to provide any additional incentives by way of rural allowance.

22. B. Rural Allowance (To be discontinued)

11.139. Based on the recommendation of PRC 1999, Government issued

orders in G.O.Ms.No.144, Fin. & Plg. (F.W.-TA) Department, Dt.30-08-1999
enhancing the rate of Rural Allowance from Rs.150/- p.m. to Rs.200/- p.m. to
the Civil Assistant Surgeons and Deputy Civil Surgeons belonging to Medical
& Health Department for the period they work in the hospitals / dispensaries
located in rural areas.
 218

11.140. In G.O.Ms.No.411 H.M.&F.W.(A2) Department, Dt.5-11-2001,

orders were issued granting Rural Allowance for the doctors working in
P.H.Cs and C.H.Cs @ Rs.1000/- per month to the male doctors and @
Rs.1500/- p.m. to the lady doctors W.E.F. 1.11.2001. In this order, the orders
issued earlier in G.O.Ms.No.144 Fin. & Plg. (F.W.-T.A.) Department, Dt.30-
08-1999 wherein the rate of rural allowance was increased, were neither
referred nor discussed.

11.141. Keeping in view the recommendations of PRC 1999, P.R.C.

2005, recommended to increase the rate of Rs.200/- p.m. (as sanctioned in
G.O.Ms.No.144 Fin. & Plg. (FW-TA) Department, dt.30-08-1999) to
Rs.350/-p.m. and Govt. also issued orders to the above effect in
G.O.Ms.No.268 Fin (TA)Department, Dt.15-10-2005. It is evident that the
orders issued in G.O.Ms.No.411, H.M. & F.W. (A2) Department, Dt.5-11-
2001 were not brought to the notice of P.R.C. 2005.

11.142. Since the Government had already sanctioned Rural allowance

@Rs.1000/1500p.m in G.O.Ms.No.411, HM & FW (A2) Depot, dt.5-11-2001
the orders issued in G.O.Ms.No.268 Fin (TA) Department Dt.15-10-2005
@Rs.350/-p.m. have become redundant. The commission, therefore,
recommends to discontinue the payment of Rural Allowance of Rs.350/-
p.m. sanctioned in G.O.Ms.No.268 Fin (TA) Dt.15-10-2005. The
recommendation regarding the continuance of the Rural allowance sanctioned
in G.O.Ms.No.411, H.M.& F.W.(A2) Department, dt.5-11-2001 is made
elsewhere in the report.

23. Special Allowance to Grey Hounds, Special Intelligence Branch

Personnel and Counter Intelligence Cell of Police Department:

11.143. In G.O.Ms.No.195 Fin. Plg. (FW-TA) Department, Dt.24-11-99

orders were issued sanctioning Special Allowance to the following categories
of posts belonging to Grey Hounds Unit of Police Department and it was
ordered to be continued at the same rates in RPS 2005 in G.O.Ms.No.510 Fin
(TA) Department, dt.28-12-05.

Rate of Special
Sl.No. Category of Post
Allowance
1. Group Commander 50% of Pay + DA per
2. Squadron Commander month
Assault Commander/ Deputy
3. Superintendent of Police
(Communications)
Deputy Assault Commander/Inspector 50% of Pay + DA and
4.
(communications) 10% of pay per month
Asst. Assault Commander / Sub-
5. Inspector & Asst. Sub-Inspector
(Communications)
 219

Rate of Special
Sl.No. Category of Post
Allowance
Sr. Commandos / Head Constable
6. (Communications) / Head Constable 50% of Pay + DA and
(Dog Squad) 10% of pay per month
Jr. Commandos /Police Constable
7. (Communications)/ FE Dog Boys/
Police Constable (Dog Squad)

11.144. The I.G. of Police Grey Hounds represented to continue the said
allowance in the proposed revised scales and also to extend the Special
Allowance to the Medical Officer and his staff and to the last grade staff who
accompany them on operation duty. He had also requested to allow Special
Allowance at 15% of Basic Pay to the Cooks and Assistant Cooks of Grey
Hounds Department on par with Cooks of Armed reserve & A.P. Special
Police. The commission recommends to continue the Special Allowance
to the Grey Hounds Staff referred to above in the proposed revised
scales.

11.145. The Medical Officer & his staff and the last grade staff will
move upto base camp only while the Assault staff will move into interior
places. As such, the Commission, recommends to allow Special Allowance
to the Medical officer& his staff, to the Last Grade Staff and also to the
Cooks & Assistant Cooks who actually accompany the Assault teams, at
15% of Basic Pay + D.A. thereon.

11.146. In G.O.Ms.No.290 Home (Courts-C) Department, Dt.08-09-

2000 orders were issued extending the Special Allowance as admissible to the
Staff of Grey Hounds to the Special Intelligence Branch Personnel of the
Intelligence Department at the same rates. In G.O.Ms.No.511 Fin. (TA)
Department, dt.28-12-2005, it was ordered to continue the Special Allowance
at the same rates in RPS 2005 also. The commission, therefore,
recommends to continue the Special Allowance to Special Intelligence
Branch Personnel, at the same rates in the proposed revised scales also.

11.147. In G.O.Ms.No.53 Home (Pol. Bud) Department, dt.26-03-07,

orders were issued sanctioning Special Allowance at 50% of basic pay to the
following categories of posts of Counter Intelligence Cell of Intelligence
Department W.E.F.1-4-2007.

1. I.G. of Police
2. D.I.G. of Police
3. Superintendent of Police
4. Additional Superintendent of Police
5. Deputy Superintendent of Police
6. Inspector of Police
 220

7. Sub-Inspector of Police
8. Head Constables
9. Police Constables / (Drivers)

11.148. The commission recommends to continue the same in the

proposed revised scales.

11.149. In G.O.Ms.No.50 Law (LA & J – Home Courts–D) Department,

Dt.23-04-2009 orders were issued sanctioning Special Allowance @Rs.100/-
p.m. to the Staff working in Record Room / Property Room of Subordinate
Courts. The Commission recommends to continue the allowance at the
same rate of Rs.100/- p.m. in the proposed revised scales also.

24. Anti Naxalite Squad Allowance:

(Special Task Force, Anti Naxalite Squad
[Both Civil Armed Reserve and APSP] of Police Department)

11.150. This Allowance is sanctioned to the Police Personnel working in

the Special Task Force, Anti-Naxalite Squad (both Civil Armed Reserve &
APSP) as shown below. The existing rate is 15% of basic pay as sanctioned in
G.O.Ms.No.264 Fin(TA) Department, dt:15/10/2005, based on the
recommendations of PRC 2005. The Commission recommends to continue
this allowance at the same rate of 15% of basic pay.

Existing Amount
(as per
Sl. Revised
Department & Category G.O.Ms.No. 264 Remarks
No. amount
Fin.(TA) Dept.,
dt.15-10-05)
i. Inspectors
15% of Basic Pay 15% of
ii. Sub-Inspectors Basic Pay
iii. Head Constable
iv. Police Constable
v. Armed Reserve Sub 15% of Basic Pay 15% of
Inspector [for the actual Basic Pay
period they are [for the
deployed for actual period
combing they are
operations in deployed for
Naxalite affected combing
vi. Cook areas] operations in
Naxalite
affected
areas]
 221

25. Double Lock Key Allowance in Treasuries & Accounts

Department:

11.151. This allowance is sanctioned to the employees working against

the following categories of posts in T&A Department for holding the Double
Lock Key of the strong rooms in Treasuries. The existing rates are as per the
orders issued in G.O.Ms.No.264, Fin(TA) Dept, dt:15/10/2005 based on the
recommendations of PRC 2005. This rates of this allowance are
recommended to be increased as shown below:

Existing amount
(as per
Sl. Department & Revised
G.O.Ms.No. 264 Remarks
No. Category amount
Fin.(TA) Dept.,
dt.15-10-05)
(i) In Sub Treasuries.
i. Sub-Treasury 225/- p.m Rs.275/- p.m.
Officer
ii. Accountant 150/- p.m. Rs.200/- p.m.
(Double lock
Officer in Sub
Treasuries)
(ii) In Treasuries in Revenue Division
i. Assistant Treasury 250/- p.m Rs.300/-p.m.
Officer
ii. Sub Treasury 225/- p.m Rs.275/- p.m.
Officer

26. Computer Allowance:

11.152. In G.O.Ms.No.187 Fin & Plg (FW-TA) Department Dated: 20-

6-91 Computer allowance at Rs.100/- PM. Was sanctioned for the first time
W.E.F. 1.6.1991, to the staff working in Treasuries for attending to Data
Entry Work. This was subsequently enhanced to Rs.200/- p.m. from 1-3-
1996 in G.O.Ms.No.32 Fin & Plg. (FW-TA) dated 15-2-1996 and extended to
sub treasuries also. Afterwards it was not enhanced further. The Director of
Treasuries and Accounts informed that instructions were issued by him to pay
the computer allowance to the Junior Accountants / Senior Accountants who
are actually engaged in Data Entry Work on Computers limiting it to the
number of computers actually available.

11.153. The A.P. Treasury Services Association requested to enhance

this allowance to Rs.1000/- p.m. and to pay this allowance to all the personnel
of the Treasuries and Accounts department. There is also a request from
Commercial Taxes department association to pay Computer allowance at
 222

Rs.2500/- p.m. to the staff who are attending to the work on computer for data
preparation etc.

11.154. Prior to the introduction of the Computers the entire data work
in the Treasuries was being done manually. After introduction of computers
the work is being done on the computers. In fact, attending to the work of
Data Preparation and updating it on computers is less laborious when
compared to the work done manually. To that extent the work load of Senior
Accountants / Junior Accountants in the Treasuries Department, in so far as
data entry work is concerned, has to be considered as less strenuous to a large
extent.

11.155. This computer allowance was sanctioned for the first time in
1991 when the use of the computers in Government Departments was not in
vogue. The computers are now in extensive use in all the Government
departments not only by the computer operators / Typists / Stenos but also by
all the employees at all levels. There is no justification for continuing the
payment of computer allowance any more. The Commission, therefore,
recommends to issue orders for discontinuing the payment of computer
allowance to the staff working in Treasuries and Accounts department
and any other Departments if it is being paid. The Commission further
recommends that computer allowance should not be sanctioned to any of
the categories of the employees working in Government Departments.

27. Clerical Allowance

11.156. This allowance is sanctioned to Pharmacists in Medical

Education Department as they are required to attend to clerical duties in
addition to their normal technical duties. The current rate is Rs. 75/- p.m as
per G.O.Ms.No. 268, Fin (TA) Dept., dt.15-10-2005. There is a request to
increase the rate. The Commission recommends the enhancement of this
allowance from Rs.75/- a month to Rs. 100/- a month.

28. N.G.G.Os Clinic Allowance:

11.157. Currently, Civil Assistant Surgeons/Deputy Civil Surgeons and

Staff Nurse are sanctioned this Allowance for attending to work at NGGO
clinic. The existing rates of this Allowance are as per G.O.Ms.No. 268, Fin
(TA) Dept., dt.15-10-2005. They may be enhanced as noted against each.

Existing Recommended
1. Civil Assistant Surgeon/
Deputy Civil Surgeon Rs.125/- p.m. Rs.150/- p.m.
2. Staff Nurse Rs. 75/- p.m. Rs.100/- p.m.
 223

11.158. The Commission further recommends to review the functioning

of the N.G.G.Os Clinics in the Hospitals under the control of Medical and
Health Departments and also under the control of Andhra Pradesh Vidya
Vidhana Parishad to see that these clinics attend to the cases of all
Government employees in service (including Gazetted employees) and also
the retired Government employees.

29. Leprosy Allowance:

11.159. This allowance is sanctioned to the following categories of posts

under the Department of Health. The existing rates are as per
G.O.Ms.No.284, Fin(TA) Dept., dt.15-10-2005 and as per G.O.Ms.No. 233
Fin (TA) Dept., dt.10-8-2006. The Commission recommends to increase this
allowance at the rates noted against each category.

Category Existing Rate Revised Rate

1. Medical Officer (Leprosy
Eradication Programme) Rs. 600/- p.m. Rs.650/- p.m.

2. Physiotherapist Rs. 250/- p.m. Rs.300/- p.m.

3. Non Medical Supervisor Rs. 200/- p.m. Rs.250/- p.m.

4. Deputy Health Education Officer/

Deputy Paramedical Officer Rs. 200/- p.m. Rs.250/- p.m.

5. Non Medical Assistant Rs. 100/- p.m. Rs.125/- p.m.

6. Health Educator Rs. 100/- p.m. Rs.125/- p.m.

7. Dresser/Sweeper/Nursing
Orderly (ward boy) Rs. 80/- p.m. Rs.100/- p.m.

8. Para Medical Officers Rs. 200/- p.m. Rs.250/- p.m.

9. Health Education Officer

(Leprosy) Rs. 200/- p.m. Rs.250/- p.m.
(WEF 10.8.2006)

30. Slaughter House Allowance:

11.160. This allowance is given to Veterinary Assistant Surgeons for

attending to antemortem/postmortem duties at Slaughter Houses. The existing
rates are as follows:
 224

1. For those working in Municipal areas ... Rs.400/- p.m.

2. For those working in Gram Panchayat areas ... Rs.200/- p.m.

(vide G.O.Ms.No.265 Fin.(TA) Dept., Dt. 15-10-2005)

11.161. The Commission recommends enhancement of this allowance

as noted below.
1. For those working in Municipal areas ... Rs.500/- p.m.

2. For those working in Gram Panchayat areas ... Rs.300/- p.m.

31. Supervisory Allowance:

11.162. This allowance is given to the following categories of

employees in Local Bodies, Municipalities and Municipal Corporations,
Hyderabad, Vishakapatnam and Vijayawada who perform the duties of
supervising sanitary work.

Sl.
Institution Category
No.
1. Local bodies Daroga
2. a) Local bodies Sanitary Maistry
b) Municipalities
c)Municipal Corporations
Visakhapatnam & Vijayawada
3. Municipal Corporation Hyderabad Sanitary Jawan

11.163. The existing rate of Rs.80/- p.m. is as per G.O.Ms.

No.258, Fin (TA) Dept., dt.15-10-2005. The Commission recommends to
increase the amount from Rs.80/- p.m. to Rs.100/- p.m.

32. Sub-Jail Allowance

11.164. This allowance is given to Civil Assistant Surgeons who

perform duties of attending to sub-jail. The existing rate of Rs.150/- p.m. is as
per G.O.Ms.No. 273, Fin (TA) Dept., dt.15-10-2005. This allowance is
recommended to be increased from Rs.150/- p.m. to Rs.200/- p.m.

33. Office Allowance and Maintenance Allowance:

11.165. These allowances are sanctioned to Assistant Public Prosecutor

Grade-I and Grade-II and Legal officers of Anti-Corruption Bureau. The
existing rates are as per the orders issued in G.O.Ms.No. 266 Fin (TA) Dept.,
dt.15-10-2005.
 225

Existing rates

--------------------------------------------------------------------------------------------
Category Office Maintenance
Allowance Allowance
--------------------------------------------------------------------------------------------
1) Assistant Public Prosecutor, Grade-I Rs.150/-p.m. Rs.250/-p.m.
2) Assistant Public Prosecutor, Grade-II Rs.100/-p.m. Rs.250/-p.m.
3) Legal officers of A.C.B Rs.100/-p.m. Rs.250/-p.m.
--------------------------------------------------------------------------------------------

11.166. The Association of Public Prosecutors requested to increase the

rate of allowance and to extend this allowance to the following posts also.

1. Additional Public Prosecutor Grade II

2. Additional Public Prosecutor Grade I
3. Public Prosecutor / Joint Director

11.167. It is seen from their representation and the schedule of

sanctioned posts that the designations of Asst. Public Prosecutor Grade I &
Grade II were changed as Asst. Public Prosecutor and Senior Asst. Public
Prosecutor respectively.

The Commission recommends the following revision of

Allowances:
----------------------------------------------------------------------------------------------
Category Office Maintenance
Allowance Allowance
----------------------------------------------------------------------------------------------
1) Public Prosecutor / Joint Director Rs.350/-p.m. Rs.300/-p.m
2) Additional Public Prosecutor Gr.I Rs.300/-p.m. Rs.300/-p.m.
3) Additional Public Prosecutor Gr.II Rs.250/-p.m. Rs.300/-p.m.
4) Senior Assistant Public Prosecutor, Rs.200/-p.m. Rs.300/-p.m.
5) Assistant Public Prosecutor, Rs.150/-p.m. Rs.300/-p.m.
6) Legal officers of A.C.B Rs.150/-p.m. Rs.300/-p.m.
----------------------------------------------------------------------------------------------

34. Readers Allowance:

11.168. Blind Teachers and Lecturers are given this allowance.

Presently, Junior Lecturers and above are paid @ Rs.500/- per month, School
Assistants are paid @ Rs.400/- per month and Secondary Grade Teachers
(including Craft Instructors) are paid @ Rs.300/- per month as per
G.O.Ms.No. 333, W.D. & C.W. & D.W (DW) Dept., dt.5-10-2005. The
 226

Commission recommends enhancement of this allowance at the rates

noted against each:

1. Junior Lecturers and above ... Rs.600/- per month.

2. School Assistants ... Rs.500/- per month.

3. Secondary Grade Teachers ... Rs.400/- per month.

(including Craft Instructors)

35. Blood Bank Allowance

11.169. This allowance is given to Staff Nurses belonging to Institute of

Preventive Medicine, P.H. Labs and Food (Health) Administration
Department. The existing rate is Rs. 125/- P.m. as per G.O.Ms.No. 275, Fin
(TA) Dept., dt. 15-10-2005. This allowance is recommended to be
increased to Rs.150/- p.m. It is further recommended that this allowance
may be extended to the Staff Nurses working in the Teaching and Non-
Teaching Hospitals where Blood Banks are functioning under the control
of Medical Education, Health, Family Welfare, Ayush and Insurance
Medical Services Departments.

36. Difficult Sanitation Service Allowance:

11.170. This allowance is given to Kamaties, Malaria Field Workers,

Drainage Gang Mazdoors, Scavengers and Thoties working in Municipal
Corporation of Hyderabad. The existing rate is Rs. 100/- P.m. as per
G.O.Ms.No. 274, Fin (TA) Dept., dt. 15-10-2005. This allowance is
recommended to be increased to Rs.125/- p.m. to the above categories
working in Municipal Corporation, Hyderabad.

37. Theatre Allowance:

11.171. This allowance is given to the Staff Nurses belonging to

Medical Education Dept., and Staff Nurse/Head Nurse belonging to Family
Welfare and Insurance Medical Services Departments. The existing rate is Rs.
75/- P.m. as per G.O.Ms.No. 268, Fin (TA) Dept., dt. 15-10-2005. This
allowance is recommended to be increased to Rs.100/- p.m. It is further
recommended that this allowance may be extended to the Head Nurses of
Medical Education Department, Nurses and Head Nurses of Ayush Dept.,
and also to the Theatre Assistants belonging to all Medical Departments
i.e., Medical Education, Health/Family Welfare, Ayush and Insurance
Medical Services Departments at the same rate if they attend to theatre
work.
 227

38. Machine Allowance:

11.172. This allowance is given to Copyists working in Judicial

Department for whom Typewriters were not provided by the Government and
it shall cease from the day on which Typewriters are provided by
Government. The existing rate is Rs. 100/- P.m. as per G.O.Ms.No. 277, Fin
(TA) Dept., dt. 15-10-2005. This allowance has to be dispensed with in all
the Courts which are supplied with Computers / Photo Copying
Machines. In those Courts which do not have the facility of Computers
or Photo Copying it is recommended that this allowance may be
continued at the present rate of Rs.100/- p.m. This allowance may be
withdrawn from the month subsequent to the month in which the
Computer / Photo Copying Machine is supplied.

39. Library Allowance:

11.173. The Association of Public Prosecutors requested to sanction an

amount of Rs.5,000/- per annum as Library Allowance to all the public
prosecutors on the ground that the public Prosecutors have to refer various
cases to prepare and conduct prosecutions in the Court and they have to
necessarily maintain a Library. The Commission recommends payment of
Library Allowance at Rs.1000/- per annum to the following categories of
posts in the Department of prosecutions.

i) Assistant Public Prosecutor

ii) Senior Assistant Public Prosecutor
iii) Additional Public Prosecutor Gr.II
iv) Additional Public Prosecutor Gr.I
v) Public Prosecutor / Joint Director

40. Special Allowance to the staff working in Sub-ordinate Courts:

11.174. In G.O.Ms.No.290 Home (Courts-C) Department, Dt.08-09-

2000 orders were issued extending the Special Allowance as admissible to the
Staff of Grey Hounds to the Special Intelligence Branch Personnel of the
Intelligence Department at the same rates. In G.O.Ms.No.511 Fin. (TA)
Department, dt.28-12-2005, it was ordered to continue the Special Allowance
at the same rates in RPS 2005 also. The commission, therefore,
recommends to continue the Special Allowance to Special Intelligence
Branch Personnel, at the same rates in the proposed revised scales also.
 228

41. Incentive Allowance:

11.175. Based on the recommendations of Anomalies Committee 2003,

incentive allowance was sanctioned in G.O.(P) No. 511, Fin (TA) Dept.,
dt.11-6-2004 to the following categories of Police Dept., at the rates noted
against each.

1) Armored Head Constable @ Rs.75/-p.m

2) Armored Police Constable @ Rs.50/-p.m

11.176. Pay Revision Commission 2005 recommended to increase the

above rates as noted against each.
Existing Revised
1) Armored Head Constable Rs.75/-p.m Rs.85/-p.m
2) Armored Police Constable Rs.50/-p.m Rs.60/-p.m

11.177. Orders issued, if any, by Government on this recommendation

are not brought to the notice of this Commission. Keeping in view the
general increase in rates, the Commission recommends to increase the rate
of this allowance to the following categories at the rates noted against
each.

1) Armored Head Constable Rs.100/- p.m

2) Armored Police Constable Rs. 75/- p.m

42. Scout Allowance:

11.178. The rate of Scout Allowance of Rs.15/- p.m. is admissible to the

Teachers working in Government Secondary Schools, Government Training
Schools, as per G.O.Ms.No.46, Fin & Plg (FW-TA) Dept., dt.6-2-1980.
Based on the recommendation of Anomalies Committee 2003, orders were
issued in G.O. (P) No.511 Fin (TA) Dept., dt.11-6-2004, enhancing the rate
from Rs. 15/- p.m. to Rs. 50/- p.m. to the teachers in Government Secondary
Schools, Government Training Schools, who are fully qualified as Scout
Masters and A.C.C Officers provided they are actually running at least a
patrol of 24 Scouts and Guides and A.C.C. Officer has to raise a minimum
number of 50 cadets as per G.O.Ms.No.46 Fin (TA) Dept., dt.6-2-1980.

11.179. Pay Revision Commission 2005, recommended to increase the

above rate from Rs.50/- p.m. to Rs.65/- p.m. Orders issued if any by
Government on this recommendation are not brought to the notice of this
Commission. Keeping in view, the general increase of rates, the
Commission recommends to increase the rate of this allowance to Rs.75/-
 229

p.m. subject to the same conditions specified in G.O.Ms.No.46 Fin (TA)

Dept., dt.06-02-1980.

43. Intensive Care Unit Allowance:

11.180. The A.P. Government Nurses Association requested to sanction

Intensive Care Unit Allowance at Rs.300/- p.m. to the Staff Nurses and Head
Nurses for the period they serve in the Intensive Care Units. This is sought on
the ground that there is considerable mental stress and physical strain
associated with duties in Intensive Care Units.

11.181. This is a new allowance requested by the Nurses Association.

11.182. The Commission feels that the demand is reasonable. The

Commission, therefore, recommends payment of Intensive Care Unit
Allowance to the following categories at the rates noted against each.

1. Head Nurse @ Rs. 75/- p.m

2. Staff Nurse @ Rs. 50/- p.m
3. Nursing Orderly @ Rs. 25/- p.m
(M.N.O / F.N.O.)

11.183. The payment of this allowance shall be restricted only for

the period they actually work in the Intensive Care Units of the Hospitals
under the control of Medical Education, Health and Family Welfare,
Insurance Medical Services and AYUSH Departments.

44. Delhi Allowance / Special Compensatory Allowance and other

items relating to the staff working in A.P. Bhavan New Delhi:

1. Delhi Allowance:

11.184. The Staff working in A.P. Bhavan, New Delhi are allowed to
draw 20% of Basic Pay subject to a maximum of Rs.2000/- p.m. as per the
orders issued in G.O.Ms.No.264 Fin. (TA) Dept., dt.15-10-2005. It was also
mentioned in the G.O. that the said allowance is as per G.O.Ms.No.148 GA
(GH1) Dept., dt.29-04-1998. The request is to sanction this allowance @25%
of Basic Pay subject to a minimum of Rs.2000/- p.m. This allowance was
originally allowed at 25% of Basic Pay subject to a ceiling of Rs.375/-p.m.
w.e.f. 1-8-91. The ceiling limit was increased to Rs.1500/- p.m. It was further
revised as 20% of Basic Pay with ceiling limit of Rs.2000/-p.m. from 15-10-
05 as per the recommendation of the PRC 2005. As per the orders issued
sanctioning the Delhi Allowance in G.O.Ms.No.674 GA (GH1) Dept. dt.27-
09-93 this allowance is applicable to those employees who are appointed in
A.P. Bhavan in the state scales of pay and also to those who opted for state
 230

scales of pay from central pay scales. The Commission recommends to

revise this allowance as 15% of Basic Pay subject to a maximum of
Rs.2500/- p.m. since the scales are revised merging D.A. and also allowing
fitment in fixation of pay in the revised scales. This allowance is applicable
only to the staff recruited at Delhi and are working in A.P. Bhavan but
not to such of the staff who were deputed from State Government to
work at A.P. Bhavan, New Delhi, since they are eligible for the payment of
special compensatory allowance for the period of deputation.

2. Special Compensatory Allowance:

11.185. Special Compensatory Allowance was sanctioned to the staff

deputed from the State Government @40% of Basic Pay in G.O.Ms.No.700
GA (GH1) Department, dated 10-10-77. It was revised to 25% in the year
1980. In the year 1993 this was continued @20% of Basic Pay subject to a
maximum of Rs.1000/-. Though there was revision of scales in 1999 & 2005
neither the rate nor the maximum amount was changed. The Commission,
therefore, recommends to revise this allowance as 15% of Basic Pay
subject to a maximum of Rs.2500/- p.m. This allowance is permissible
only to such of the staff who were deputed from the State Government to
work at A.P. Bhavan, New Delhi, but not to the staff who are eligible for
Delhi Allowance specified in item 1 above.

3. The other request is to extend the facility of L.T.C. every year to all the
staff. Government already examined and negatived this request in the case of
employees who were recruited at Delhi. However, the employees deputed
from State Government to work at New Delhi are already allowed this facility
once a year. Since the staff recruited at Delhi have made a conscious decision
to apply for the job in Delhi there is no reason to extend this facility of yearly
home town LTC for them. As such the commission is not inclined to
recommend permission to avail L.T.C. once in an year to other than the staff
working on deputation from State Government.

4. There was a request to sanction special pay to all the staff members on
the ground that due to heavy inflow of V.I.Ps the staff have to work without
availing public holidays and have to work for almost through out the year to
attend to the protocol and Liason duties. Basing on the information furnished
by the Resident Commissioner, the Commission recommends to pay
Special Pay to the following categories of posts only at the rates shown
against each which was included in the list of Special Pays.

a) Assistant Commissioner … Rs.350/- p.m.

b) L.A.O. … Rs.350/- p.m.
c) Protocol Officer … Rs.350/- p.m.
d) Asst. Liason Officer … Rs.250/- p.m.
 231

e) Asst. Reception Officer … Rs.250/- p.m.

5. At present the Lift Operator working in A.P. Bhavan is eligible for a
Special Pay of Rs.75/- p.m. on par with the Lift Operator working in
Secretariat. It is recommended in the list of special pays elsewhere in this
report that the amount of Special Pay be paid @Rs.100/- p.m. to the Lift
Operator working in A.P. Bhavan, New Delhi, on par with Lift Operator
working in the Secretariat which was included in the list of Special Pays.

6. In respect of the Special Pay to the Attenders working in the Peshis of

Commissioner and Additional Commissioner necessary recommendation is
made in a separate item where in special pays are recommended for the staff
working in the Peshis of C.M., Ministers, C.S. etc.

45. Construction Allowance:

11.186. In G.O.Ms.No.301, Fin & Plg. (FW-TA) Dept., Dt.28-12-1991

orders were issued for the payment of Construction Allowance on the slab
rates based on the pay in R.P.S.1986 to the employees engaged in
Construction activities in the Projects mentioned therein. In G.O.Ms.NO.229,
Fin & Plg. (FW-PC II) Dept., dt.29-5-1993 Government issued orders for the
payment of the said allowance at the same rates duly changing the pay slabs
in R.P.S.1993. Similarly in G.O.Ms.No.154, Fin & Plg (FW-TA) Dept.,
Dt.10-9-1999, Government issued orders for the payment of the said
allowance at the same rates duly changing the pay slabs in R.P.S., 1999.
Thereafter no orders were issued by Government continuing the payment of
the said allowance after the introduction of R.P.S.2005.

11.187. On the representation of Project employees the Government

referred the matter to the One Man Committee 2006. The O.M.C.2006 in
para 3.82 of its report observed as follows:

“The Committee therefore is of the view that no construction

allowance needs to be paid on any of the existing schemes. However
in future when projects are sanctioned and are in construction mode
and in areas where ordinary facilities are not available and the
conditions already laid down by the Government are satisfied, viz.,
these should not be within 8 kms of a town and 2 kms of mandal, an
allowance as indicated below can be considered.”

Sl. Rate of Construction

Basic pay range in 2005 Scale of Pay
No. Allowance p.m.
1. Upto Rs.6040/- Rs.150/-
2. Rs.6041/- and above upto Rs.7770/- Rs.190/-
3. Rs.7771/- and above upto Rs.9775/- Rs.240/-
4. Rs.9776/- and above upto Rs.12070/- Rs.280/-
5. Rs.12071/- and above Rs.300/-
 232

11.188. The Government agreed with the O.M.C.2006 that no

construction Allowance needs to be paid further to the 12 Projects which have
been completed and have become operational. Government viewed that any
decision on construction allowance for future projects is premature at this
stage.

11.189. The JAC has made a representation for recommending payment

of Construction Allowance at enhanced rates on the ground that the
employees who are working in Projects are not in receipt of Construction
Allowance.

11.190. This commission endorses the views of the OMC 2006 which
examined the issue in detail. The OMC came to the conclusion that none of
the existing projects qualify for project allowance.

46. Incentive to the Ministerial Staff of C.I.D. Branch of Police

Department:

11.191. The C.I.D. Ministerial Staff Association, A.P., Hyderabad,

represented to recommend 30% incentive on basic pay to the ministerial staff
working in C.I.D. branch of Police Department on the ground that their
counter parts in Anti Corruption Bureau, Intelligence and A.P. Police
Academy are getting the same. They have further stated that they are striving
every nerve in discharging their duties to support the executive staff who are
investigating complicated and sensational cases. They have also stated that a
proposal has been made to Government for sanction of 30% of basic pay as
incentive to the executive staff in C.I.D. branch.

11.192. Crime investigation is the normal function of the police

Department. C.I.D. branch is doing exactly that work. The proposal to
sanction incentive to the ministerial staff of Intelligence Department has not
been recommended by this commission. The comparison with the nature of
duties of ministerial staff in Anti Corruption Bureau and A.P. Police
Academy is not acceptable. The commission, therefore, is not inclined to
recommend any incentive to the ministerial staff of C.I.D. branch of
Police Department.

47. Supply of Dress, Shoes to the Drivers of Govt. Vehicles:

11.193. It is brought to the notice of this Commission that in

G.O.Ms.No.630 Home (Printing –A) Dept. Dt:17-11-1984 orders were issued
to supply terry cotton Khaki color cloth of 9 meters for each driver (at the rate
of 5 meters for the pants and 4 meters for the bush shirts) once in two years
and it was also ordered therein that the individual departments should bear the
stitching charges of the uniform. The Drivers Association requested to
recommend the supply of uniform as per the above orders.
 233

11.194. Similarly, in G.M.No.532/ Expr-HG/85-1 Dt:7-5-85 of Finance

& Plg (FW-Expr H.G.) Dept. the scale of expenditure for the supply of one
pair of shoes to the Drivers & Motor Cycle Messengers & Lift operator etc.
was fixed at Rs.100/- once in a year. The Drivers Association requested to
recommend for the supply of shoes every year regularly.

11.195. We have observed and also are informed by various associations

that the winding up of the Department of Stationary has lead to disruption in
the supply of uniforms and shoes. Since the dress and equipment is to be
supplied from out of the Budget released to the Head of Office and the
competing demands on the limited resources, the funds are invariably utilized
for meeting other office expenses. Moreover the budgeting itself is not done
properly as supply of uniform is not an annual feature and as the budgetary
outlays are determined with reference to the outlay/ expenditure in the
previous year, there is a possibility of requirement of funds for uniforms
being ignored at the time of budget formulation. In order to overcome this
problem we suggest that 2½ meters of pant cloth and 4 meters of shirting
cloth may be supplied every year to the drivers along with supply of a pair of
shoes/ chappals. The stitching charges may be paid in cash to the employee.

11.196. The Commission also suggests that if the Govt. vehicle is

available and is not condemned and there is a driver attached to the vehicle,
hiring of private vehicle should be discouraged. Only in cases where
additional vehicles are required or where the vehicle itself is condemned the
departments should resort to hiring of vehicles.

48. Ex-Gratia / Compensations in the case of Death / Disablements of

the employee:

11.197. The JAC of employees, Teachers & workers represented to

make recommendations for suitable enhancement in the amounts of Ex-
gratia/compensation payable to the employees in the following cases where
there is death or disability caused to the employees while in service.

1. Group personnel accident policy for police personnel.

2. Group insurance in the case of death of Drivers while on duty.
3. Compensation in respect of the employees who lost their lives
while discharging the risk borne duties.
4. Compensation in respect of the employees who lost their lives/
sustained injuries while performing election duties.
5. Ex-gratia to the families of the employees who met with accidental
death while performing official duties.
6. Compensations to the families of Police Personnel/ Government
Officers of other departments killed by extremists/ Anti Social
elements.
 234

11.198. These compensations were allowed by Government as a welfare

measure to the employees. They are not covered by any recommendations of
P.R.Cs. In view of the request of the J.A.C. of Employees, Teachers &
Workers, the commission recommends review of the existing
compensation packages and revision of the amounts keeping in view the
increase in the cost of living and the increase in the needs of the average
Indian family.

49. Staggered working hours for Women employees:

11.199. The 6th Central Pay Commission has recommended introduction

of staggered working hours for women employees as it would give flexibility
to employees to work either early or late depending on their requirements at
the home front. Under this scheme, 11 AM to 4 PM will be core hours during
which all women employees will necessarily need to be present in the Office.
They will, however, have the option of either coming 1 ½ hours earlier or
leaving after 2 hours depending upon the actual time they have checked in.

11.200. The Joint Action Committee of employees have requested to

extend the same to the women employees of the State Government. The
working hours in the State Government are from 10:30 AM to 5:00 PM while
the working hours in the Government of India are from 9:00 AM to 6:00 PM.
The system of flexibility to the women employees to attend the office either
before 10:30 A.M. or to leave the office beyond 2 hours after 5:00 PM will
not only disturb the office work but also create a situation where the women
employees may not be able to attend to their house hold duties. Further, if
such flexibility of attendance is allowed, the women employees working in
supervisory capacity may find it difficult to attend to their work without the
supporting staff. The Govt. of India has also not accepted the
recommendations of the 6th Pay Commission regarding flexi hours for women
employees and flexi weeks for employees with disabilities. This Commission
is also of the view that the staggered working hours exclusively for
women employees is neither feasible nor desirable.
 235

CHAPTER – XII
Advance Increments

12.01. The Advance Increments for higher qualifications was adopted

by the State to reward people who joined Government service even though
they had qualifications in excess of the requirements as prescribed in the
Rules for the job. This was justified in the initial years after independence
when the Rules framed provided for basic minimum qualifications for entry
into Government service and the higher level posts were mostly occupied by
the Officers of the Crown. There was obviously a reluctance to enhance the
qualifications as that would have adversely impacted those who were already
in Government service. The solution found to pay higher remuneration
without changing the qualifications for the job or the pay scale was to award
increments for possession of higher qualifications.

12.02. The practice of Advance Increments that was introduced since

the formation of the State continued for a long time. Pay Revision
Commission, 1993 analyzed the history of the concessions given by the
previous Commissions and felt that the continuance of such incentive was no
longer valid as persons possessing higher qualifications were available in
plenty seeking Government employment. The Commission suggested an
alternative of increasing the minimum qualifications for recruitment where it
was considered necessary or desirable. The Commission suggested a review
of the incentive scheme. As a result a Committee of Senior Officers was
constituted in G.O.Ms.No.356, General Administration (Spl.A) Department,
dt.22.6.1993 to undertake a review of the functioning of the scheme of
allowing advance increments to various categories of employees. As the said
Committee could not submit its report before the constitution of the 1999 Pay
Revision Commission, the subject was again included in the Terms of
Reference of the said Commission.

12.03. The Pay Revision Commission, 1999 after reviewing the

Incentive Scheme over a period of time has come to the conclusion that the
incentive should be done away with. The Commission felt that there is a
large pool of qualified personnel seeking entry into Government service and
therefore there is no need to provide an extra incentive by way of additional
increments to attract persons possessing higher qualifications into those
services. The Commission however felt that in specialized areas like
Medicine, higher qualifications would be given weightage for the purpose of
promotion. The Commission analyzed the result of litigation in the High
Court leading to sanction of Incentive Increments to certain categories of
employees within the High Court by invoking Article 14 of the Constitution
of India. The Commission cautioned the possibility of invocation of Article
 236

14 by other categories in the Government service for getting Advance

Increments for possession of higher qualifications. The Commission in the
end recommended that the service rules be amended prescribing suitable
qualifications in the changed circumstances and based on recommendations of
One Man Commission. The Commission suggested sanction of Incentive
Increments in exceptional cases. The Commission also felt that a nexus
between specific qualifications possessed and the duties performed should be
established before the incentive is sanctioned. The Commission advised
against sanction of incentive incase the qualifications are acquired with
Government assistance.

12.04. Several Associations have represented for restoration of

Advance Increments for higher qualifications. The reasons advanced by
the three Commissions that preceded our Commission for a thorough
review of the Advance Increments continues to be valid. We are
convinced that there is no case for sanction of Advance Increments and
wherever necessary the minimum qualification should be modified to suit
the job requirements. The Commission therefore re-iterates the
recommendations of the 2005 Commission that each Department should
identify the posts where a clear nexus is established between possession of
higher qualifications and the needs of the job performed by them. It is
only in extra ordinary cases that Advance Increments should be
considered for sanction, for higher qualifications and we would suggest
that such decision should be taken at the Cabinet level.
 237

CHAPTER-XIII
Loans and Advances

13.01. Government is providing funds in the budget towards the

payment of recoverable advances to the employees for (i) purchase/
construction of houses, (ii) repairs/ improvements to the existing houses, (iii)
purchase of the conveyances, (iv) celebration of marriages (v) purchase of
personal computer. All these advances bear a lesser rate of interest when
compared to the rate of interest charged by the Banks / Financial Institutions.
In addition, non interest bearing advances like Festival advance, Education
advance etc., are also being allowed to the employees. Government have also
permitted the employees to obtain additional loans for construction of houses
from Banks / financial institutions by mortgaging the same property. In
addition, Government have also allowed certain banks to pay advances to the
employees for construction / purchase of house by meeting the difference in
rate of interest, between the Bank rate and the Government rate, from State
Funds. Keeping in view the existing provisions and the requests received
from the Associations, the following recommendations are made on each of
the advances.

Advances to the employees

13.02. Among the advances payable to the employees the following are
the interest bearing advances.

A. Advance for purchase of House site / construction of a house on

the site already owned by the employee / purchase of Ready
Built House (including flat) / repairs, additions improvements
etc. to the house already owned by the employee/ for purchase
of site –cum-- construction of the house/Flat thereon.
B. Advance for purchase of conveyances.
C. Advance for celebration of marriages.
D. Advance for purchase of personal computers.

I. HOUSE BUILDING ADVANCE:

13.03. In the case of advance for house building activity the following
are the limits of maximum amount of advance permissible to the employees at
present.
 238

For For For For construction of new For

purchase purchase purchase house/ flat on the site already undertaking
of only of Ready of site- owned by the employee repairs
site Built cum extensions,
House/ constructi enlargements,
Flat on of new improvement
house/ flat s etc.
a. Employees drawing -- 72 times of pay or W
pay upto Rs.7770 Rs.3.50 Lakhs H
p.m. I
b. Employees drawing -- 72 times of pay or C
7 times of pay of more than Rs.4.00 Lakhs H 15 times of
Basic pay Rs.7770 p.m. & pay or
or upto Rs.12385 p.m. E Rs.90000
Rs.35000 V which ever is
which c. Employees drawing -- 72 times of pay or E less
ever is pay of more than Rs.4.50 Lakhs R
less Rs. 12385 p.m. &
upto Rs.18025 p.m. I
S
d. Employees on a pay -- 72 times of pay or
of more than Rs.5.50 Lakhs L
Rs.18025 p.m. E
e. A.I.S. Officers for -- 50 times of pay or S
construction/ Ready Rs.7.50 Lakhs S
Built House

13.04. The maximum number of monthly installments for recovery of

the advance is 60 for the principal and 12 for the interest in respect of the
advance for the purchase of House Site only. In respect of advance granted for
undertaking the repairs etc., it is 75 in respect of principal and 15 in respect of
interest. The advances sanctioned for purchasing the ready built house / flat,
for construction of a house on the site already owned by the employee and for
purchase of site-cum-construction of the house/flat thereon, the maximum
number of monthly installments for recovery of principal is 240 and 60 for the
recovery of interest. After the expiry of the recovery of the principal amount
of advance, the recovery of the interest has to be commenced. The rate of
interest is 8.5% for the advance granted for undertaking the repairs etc. and in
respect of advance granted for other purposes the rate of interest is 7.5% to
the class IV employees while it is 8.5% for other than class IV employees.

13.05. The employees associations have requested for increasing the

quantum of advance in view of the escalation of the cost of land and cost of
construction.

13.06. The Govt. have already permitted the employees to obtain loans
from the commercial banks and financial institutions and has agreed to bear
the difference in between the rate of interest permissible as per HBA rules and
the rate of interest charged by the banks. In spite of that, the employees are
 239

approaching the Govt. for the sanction of advances. The payment of this
advance is subject to the availability of the budget provision. In view of the
developmental programmes taken up by the Govt. there is constraint on the
part of the Govt. to make increased provisions in the budget for this purpose.
Several guidelines were issued for distribution of this amount of advance
among the employees working in Secretariat, Directorates, Regional/ District
Level Offices and other Sub-Ordinate Offices. Inspite of that, it is not possible
to the departments to sanction this advance upto the maximum amount
permissible in the rules. There is also criticism that those working in mofussil
areas are not able to get the advances in time. As a result the employee is
forced to obtain further advances from local persons or other banks. Besides
that, the employee has to mortgage the title deeds of the houses with the
department. After the expiry of the recovery of the principal and interest the
mortgage deeds have to be reconveyed to the concerned employee. At times it
becomes difficult to the department to locate the original title deeds
mortgaged due to frequent change of offices, reorganization of the
departments etc. In addition, after the complete repayment of the amount with
interest a clearance certificate from the A.G.A.P. has to be obtained failing
which the pensionery benefits are withheld to some extent. This commission
suggests to explore the possibilities of sanctioning advances to the
employees by several banks and the difference in rate of interest if any
between bank rate and Govt. rate may be subsidized by the Govt.
Pending making such an arrangement the quantum of advances as
suggested below are recommended.

a. For purchase of only site: Ten times of basic pay or Rs.1.00

Lakh which ever is less.
b. For undertaking the repairs, extensions, etc. Twenty times of
basic pay or Rs.2.00 Lakhs which ever is less.
c. For the purchase of ready built house/ flat, for purchase of
site-cum-construction of new house/ flat and for the
construction of new house/ flat on the site already owned by
the employee:

i. Employees drawing pay upto Rs.13660 p.m. it may be

either 72 times of pay or Rs.5.00 Lakhs which ever is
less.
ii. Employees drawing pay of more than Rs.13660 p.m. and
upto Rs.21820 p.m. it may be either 72 times of pay or
Rs.6.00 Lakhs which is ever is less.
iii. Employees drawing pay of more than Rs.21820 p.m. and
upto Rs.31550 p.m. it may be either 72 times of pay or
Rs.7.50 Lakhs which is ever is less.
 240

iv. Employees drawing pay of more than Rs.31550 p.m. it

may be either 72 times of pay or Rs.10.00 Lakhs which is
ever is less.
v. All India Service Officers working in the State may be
allowed either 50 times of pay or Rs.15.00 Lakhs which
is ever is less.
d. All India service officers working in the State may be given
the option to choose either the State Govt. ceiling or to
adopt the Govt. of India rules.

II. Advance for the purchase of conveyances:

13.07. The employees are eligible for the sanction of advances for the
purchase of Motor Car, Motorcycle / Scooter, Moped and Bicycle. The
Officers eligible, the amount of advance, the number of installments of
recovery of the advance and interest and the rate of interest at present is as
follows:
Item Motor Car Motor Cycle / Moped Bicycle
Scooter
a) Eligibility Officers Employees 1) Employees All
whose basic whose basic whose basic pay employees
pay is pay is is Rs.6505 and including
Rs. 15,975 Rs. 6,505 and above class IV
and above above (except to
2) All Drivers who those for
have completed whom
2 years of advance for
service the purchase
irrespective of of Motor Car
their basic pay / Motor Cycle
was
sanctioned
earlier).
b) Amount of 15 months’ 7 months’ basic 7 months’ basic pay Rs.2,500 or
Advance basic pay or pay or or Rs. 15,000 or actual cost
Rs. 3.00 Rs.40,000 or actual cost whichever is
Lakhs or actual cost whichever is less less
actual cost whichever is
whichever is less
less
c) Number of Principal..13 Principal.. 80 Principal.. 60 Principal.. 26
Installments 5 Interest.. 16 Interest.. 16 Interest.. 04
of recovery Interest..65

d) Rate of 8.5% p.a. 7.5% p.a. 7.5% p.a. 6.5% p.a.

Interest

13.08. The associations have requested to enhance the monetary limits

on the ground that the prices of conveyances have increased.
 241

13.09. As already observed in the case of advances to House Building

purposes the employees have to be encouraged to avail of advances from
banks/ financial institutions for their requirements of conveyances. Pending
formulation of a scheme of understanding with the lending institutions the
following increases in the quantum of advance is recommended.

i. Purchase of car:

Officers whose basic pay is Rs.27700 p.m. and above may be

sanctioned either 15 months’ basic pay or Rs.4.50 Lakhs or
actual cost which ever is less.

ii. Purchase of Motor cycle/ Scooter:

Employees whose basic pay is Rs.11530 p.m. and above may be

sanctioned either 7 months basic pay or Rs.60,000/- or actual
cost which ever is less.

iii. Purchase of Mopeds:

a. Employees whose basic pay is Rs.11530 p.m. and above may be

sanctioned either 7 months basic pay or Rs.25,000/- or actual
cost which ever is less.

b. All drivers who have completed 2 years of service irrespective

of their pay may be allowed the advance as suggested in item
(a) above.

iv. Purchase of bicycle:

All employees including class IV (except to those for whom

advance for the purchase of Motor Car/ Motor Cycle/ Moped
was sanctioned earlier) may be sanctioned either Rs.5000/- or
actual cost which ever is less.

III. Advance for celebration of marriages:

13.10. Advances can be sanctioned to the employees in connection

with the celebration of marriages of the employees themselves and / or for the
celebration of the marriages of the children of the employees. The amount of
advance, the number of monthly installments of recovery of principal and
interest and the rate of interest at which the advance has to be recovered at
present are detailed below.
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a) Amount of Advance:

Class –IV Others

i) For the marriage of male Either 15 Either 15
employees themselves or for the months pay or months pay or
marriage of sons of the male / Rs.10000/- Rs.15000/-
female employees. which ever is which ever is
less less
ii) For the marriage of female Either 15 Either 15
employees themselves or for the months pay or months pay or
marriage of daughter of the male Rs.20000/- Rs.30000/-
/ female employees. which ever is which ever is
less less

B) Number of installments of recovery

a) Principal ………………………...70
b) Interest ………………………….10

C) Rate of interest
a) Gazetted Officers …… 8.5% p.a.
b) Non-Gazetted Officers …… 7.5% p.a.
c) Class-IV Employees …… 6.5% p.a.

13.11. The associations requested for enhancing the maximum limit in

view of the increase in the cost of living and since the expenses connected
with the celebration of marriages are considerably increased. Keeping in
view the request the following limits are recommended.

S. Class –IV Others

No.
i) For the marriage of male Either 15 Either 15
employees themselves or for the months pay or months pay or
marriage of sons of the male / Rs.30000/- Rs.50000/- which
female employees. which ever is ever is less
less
For the marriage of female
ii) employees themselves or for the Either 15 Either 15
marriage of daughters of the months pay or months pay or
male / female employees. Rs.50000/- Rs.75000/- which
which ever is ever is less
less

IV. Advance for the purchase of personal computers:

13.12. As per the existing rules the advance for the purchase of
personal computers can be sanctioned to the officers whose basic pay is
Rs.15,025 p.m. or more. The amount of advance shall be either the actual cost
 243

of the computer or Rs. 50,000/- whichever is less. The principal amount of the
advance is recoverable in not more than 135 monthly installments and the
interest portion is recoverable in not more than 65 monthly installments. The
rate of interest for this advance is 8.5% per annum.

13.13. The request of the associations is to allow this advance not only
to officers but also to all the employees who belong to superior service.

13.14. The request of the association is reasonable and this benefit

may be extended not only to officers but also to all the employees
drawing basic pay of Rs.26300 and above. The amount of advance will be
either the actual cost or Rs.50000/- whichever is less since the cost of
Personal Computer has not increased and the prices are in fact declining.

V. Number of installments of recovery of the interest bearing advances:

13.15. The commission feels that the existing number of monthly

installments for the recovery of the principal and interest in respect of all the
four types of interest bearing advances referred to above are reasonable and
do not require any alteration.

VI. Rate of interest:

13.16. The existing rates of interest are indicated under the relevant
advances listed above.

13.17. The employees associations requested for the reduction in the

rate of interest as noted below for all the four types of advances on the ground
that the present rates of interest were fixed when the employees were paid
interest @ 12% p.a. on their balances under GPF accounts and that the rate of
interest on GPF is now reduced to 8% p.a.

i. For Class-IV employees 5.00%

ii. For other than Class-IV employees 5.50%

13.18. The Commission feels that the request of the employees is

reasonable. The Commission therefore recommends, to fix the rate of interest
on all kinds of interest bearing advances to the employees uniformly as
indicated below:

i. For class IV employees @ 5.00% p.a.

ii. For other than class IV employees @ 5.50% p.a.

13.19. These rates may be revised periodically keeping in view the

interest paid by the Govt. on G.P.F. accounts of employees. The suggested
 244

gap of 3% or 2.5% that is now proposed between the interest paid by the
Govt. on G.P.F. and the interest levied on advances may be maintained.

VII. Penal Interest:

13.20. The existing rules provide for the recovery of the penal interest
at one and half times to the normal rate of interest in cases where the advance
was either misutilized or not utilized and also for not observing the formalities
such as mortgage, insurance, etc.

13.21. Unless deterrent punishments are imposed in cases where the

advances were either misutilized or not utilized the tendency for misuse of
advance cannot be checked. To take disciplinary action against the employees
for misuse of advance the elaborate procedure contemplated in the C.C.A.
rules has to be followed. As such it is necessary that the rate of penal interest
has to be increased to avoid misuse of advances by the employees. The
commission therefore recommends to levy penal interest at double the rate of
normal interest in case the advances are misutilized or not utilized at all and at
1½ times the normal rates for non compliance with formalities.

VIII. Non interest bearing advances:

13.22. Among the advances payable to the employees the following are
the non interest bearing advances.

A. Festival Advance.
B. Special Festival Advance for purchase of APCO cloth etc;
C. Education Advance.
D. Advance of Pay
E. Advance of T.A.
F. Medical Advance.

A. Festival Advance:

13.23. At present, employees drawing pay in the scale of Rs. 7770-

18575 or below are eligible for the sanction of festival advance of Rs.2000
and the Class IV employees are eligible for the same at Rs. 1500. This is to be
sanctioned once in a financial year and it shall be recovered in 10 equal
monthly installments.

13.24. The employees associations have requested for the increase of

the amount upto Rs.3000/- for Class-IV employees and upto Rs.5000/- to
other than the Class-IV employees.
 245

13.25. In view of the general increase in the cost of living the

following amounts are recommended.

i. For Class-IV employees -- Rs.2000/-

ii. For other than Class-IV employees drawing pay

in the scale of pay of Rs.13360- 38570 or below -- Rs.3000/-

13.26. The other conditions regarding the number of installments of

recovery and sanctioning this advance once in a financial year have to be
continued.

B. Special Festival Advance for purchase of APCO cloth etc.:

13.27. This is a temporary scheme being extended by the Government

from year to year. As per the latest orders issued in G.O.Rt.No.
3038 Fin (A&L) Dept., Dt:14-07-2008, the following are the
monetary limits.

a. Gazetted Officers Rs. 4,000.

b. Non-Gazetted Officers Rs. 3,000.
c. Class IV Employees Rs. 2,000.

13.28. This is also payable once in a financial year and the amount is
recoverable in 10 equal monthly installments.

13.29. The Commission, keeping in view the prevailing prices,

recommends the following monetary limits.

a. Gazetted Officers Rs. 5,000/-

b. Non-Gazetted Officers Rs. 4,000/-
c. Class IV Employees Rs. 3,000/-

13.30. The other conditions for the sanction, disbursement and

recovery may be continued to be followed.

C. Education Advance. :

13.31. At present the Non-Gazetted employees including class IV

employees are eligible for the payment of this advance at Rs.3000. once in an
academic year to meet the expenses in connection with the education of the
children of the employee. This is also recoverable in 10 equal monthly
installments.

13.32. The associations have requested for the increase in the amount.
 246

13.33. Keeping in view the expenses connected with the education of

the children of the employees the commission recommends to increase the
amount of advance to Rs.5000/- once in an academic year to be recovered
in ten equal monthly installments.

D. Advance of pay:

13.34. As per existing rules when employees are transferred involving

change of station, they are eligible for the sanction of advance of pay not
exceeding one month’s basic pay to be recovered in three equal monthly
installments commencing from the salary of the employee from next month
onwards.

E. Advance of T.A:

13.35. As per existing rules whenever any employee is transferred

involving change of station or whenever any employee has to go on official
tour, advance of T.A., not exceeding the amount of travelling allowance
admissible, is payable to the employee. The entire amount of advance has to
be adjusted in the T.A. bill of the employee, provided the T.A. bill is
preferred with in the time limit. If it is not preferred in time, the entire amount
of advance is to be recovered form the salary of the employee. Similarly,
employees who were permitted to avail leave travel concession as per rules,
advance of T.A. not exceeding 80% of the amount admissible as per the rules,
can be paid. This advance also has to be adjusted in the T.A. bill of the
employee after completion of the Journey.

F. Medical Allowance:
13.36. As per A.P. Integrated Medial Attendance Rules existing now,
the employees are eligible for the sanction of Medical advance to meet the
expenses of medical attendance and requirements of himself or any member
of his family for which he is entitled for reimbursement. In G.O.Ms.No.74,
HM & FW (K1) Dept., Dt:15-03-2005, the medical advance facility is
extended to all the employees for the following diseases.
1. Acute Mycardial Infracture,
2. Acute Coronary Disease / Acute Renal Failure,
3. Severe Cases of Head and Spinal Injury / Road Accident,
4. In cases of Coma,
5. PTCA Stent,
6. Open Heart Surgery,
7. Pace Maker,
8. All organ transplants,
9. Plastic Surgery done for accident cases and burns and
10. Mitral Valve replacement.
 247

13.37. The amount of advance shall be based on the package rates of

NIMS, Hyderabad and SVIMS, Tirupati depending on the estimation given by
them. This advance is adjustable from the claim relating to reimbursement of
the medical expenses by the employee.

13.38. In respect of items D, E, & F referred to above the commission

recommends to continue the facility of the present position.
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CHAPTER XIV
Medical Facilities

14.01. Government employees including pensioners are eligible for the

medical facilities under the provisions of A.P. Integrated Medical Attendance
Rules, 1972, as amended from time to time. The rules, among other things,
prescribed the details of the family members of the Government Servants for
whom reimbursement is available, list of drugs and medicines and other items
for which reimbursement is not available. Government have issued various
orders from time to time. As per the Comprehensive orders issued in G.O.Ms.
No. 74, HM & FW(K1) Dept., Dt. 15-03-2005 as subsequently amended by
G.O.Ms.No.180, HM&FW, (K1) Dept., Dt.:11-05-2006 and G.O.Ms. No.
105, HM &FW (K1) Dept., Dt : 09-04-2007, the following are the important
facilities now available to the employees / pensioners.

1. The employees / pensioners including their dependent family

members and family pensioners are eligible to get free treatment in
all the Government Hospitals. In cases where the medicines are
required to be purchased by the patients the cost of the same is
reimbursable in full.

2. For the purpose of reimbursement of medical expenditure incurred

by the employees / pensioners and their family members in respect
of the treatment taken in the private hospitals recognized by the
Government within the state, the rates prescribed by the
Government of India in the C.G.H.S. package rates of Hyderabad
are applicable.

3. In respect of the treatment obtained in NIMS Hyderabad / SVIMS,

Tirupati, for the major ailments of bye pass heart surgery,
C.A.B.G.S., Double valve replacements, Open heart procedure,
Aorotic Valve replacement, Kidney Transplantation, Cancer and
Neuro Surgery to Brain, irrespective of the package rates of
C.G.H.S., either the actual cost of the treatment or the maximum
ceiling limit of Rs.2.00 Lakhs, whichever is less, is reimbursable.

4. Where package rates in C.G.H.S/ NIMS, Hyderabad / SVIMS,

Tirupati, are not available for certain treatments (other than dental
ailments) the ceiling limit is Rs.1.00 Lakh in the case of employees
in service and it is Rs.75000. in the case of pensioners.

5.(a) All types of outpatient treatment, including Diagnostics and follow

up treatment including Chemotherapy, Radio Therapy, Regular
 249

dialysis for kidney are allowed for reimbursement if the treatment

is obtained in NIMS, Hyderabad and SVIMS, Tirupati and in all
Govt., Hospitals

(b) In respect of outpatient treatment obtained in private recognized

hospitals, reimbursement is allowed for Chemotherapy and Radio
Therapy for Cancer, and regular Dialysis for Kidney and also for
Cardinal Diseases like cardiac Diseases and severe Neurological
problems and AIDS.

(c) In respect of life long follow up treatment to certain diseases i.e, for
post operative cases, reimbursement is admissible on submission of
scrutiny report by the scrutinizing authority.

6. In any road accident cases, if the employee or his dependants are

admitted in nearby private hospitals which are not recognized as
referral hospitals, under emergency conditions, to save the life of
the patients, reimbursement is permissible, up to a limit of
Rs.25,000. after necessary scrutiny by the scrutinizing authorities.
However if the amount is more than Rs.25000. reimbursement is
permissible with the approval of Government,

7. The reimbursement claims in respect of treatment obtained in

Government Hospitals / NIMS, Hyderabad / SVIMS, Tirupati, do
not require any further scrutiny by DME / Other competent
authorities.

8. The Superintendents of Teaching Hospitals/ District Hospitals, are

authorized to scrutinize the medical reimbursement claims upto a
value of Rs.25,000/-.

9. All the District level officers of all the Departments are competent
to sanction the reimbursement claims up to an amount of
Rs.25,000. Over and above Rs.25000. the Head of the Department
is competent to sanction after scrutiny by the scrutinizing
authorities.

10. In respect of treatment obtained in private recognized hospitals

without obtaining the referral letter from Government Hospitals /
NIMS / SVIMS the claims are eligible with a cut of 10% on the
eligible amount.

11. Master Health check up to employee who crossed the age of 40

years and before retirement is permitted only for three times with
an interval of one year between each checkup. The ceiling limit is
Rs.3000/-.
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12. The facility of reimbursement for CABGS, Kidney Transplantation,

Cancer, Neurosurgery, PTCA stent is restricted to three spells for
each of the disease.

14.02. In spite of this very liberal medical reimbursement scheme

available to serving and retired employees there is considerable dissatisfaction
with the manner in which it is being operated today. The main problem faced
by the beneficiaries is the upfront payment at the hospital when a person
undergoes treatment and the difficulties encountered by them in obtaining
reimbursement from the Governmental agencies. Both Government Servants
and Pensioners requested introduction of a “cashless treatment scheme”
wherein the hospitals recognized as referral hospitals provide treatment based
on an identity card issued by the Government and the hospitals obtain
payment directly from the Government without any involvement of the
patient.

14.03. As a concept a “cashless facility” for the beneficiary is the most

attractive scheme. The main issue is how to operationalise it. The basic issue
that one should recognize is that the hospitals are under no obligation to
provide treatment first and seek reimbursement later. They would adopt it if
they find that the reimbursement is prompt and the payments are made within
a short period after the discharge of the patient, that no cuts are imposed on
the bills raised and there is no undue interference and prior approvals required
for various procedures or in proceeding with treatment of the patient. The
issue is whether the present Governmental machinery with all its limitations
including budgetary constraints can undertake this task successfully?

14.04. The Insurance Companies were in the business of selling

medical covers and so long as the business was confined to the four public
sector insurance companies. They follow exactly the same reimbursement
procedure that Government has been following now. However, with
increasing competition from private sector, reducing income from other lines
of business and a surge in demand for health covers due to boom in service
sector employment, the companies had to make their schemes attractive to the
public and in the process garner larger amounts of premium. They realized
that prompt settlement of claims is the key to selling more health policies.
They, therefore, introduced a Third Party Administrator who took over the
responsibility of identifying hospitals for extending treatment to patients on a
cashless basis, negotiate and settle for packages where amounts are specified
for various procedures and the insured would have the benefit of “facilitation
counter” which helps at the time of admission and later at the time of
discharge. Some of the insurance companies had taken up this work
“inhouse” and have a set of competent doctors who help process claims.
Incidentally it is the Third Party Administrator who pays the hospital and
obtains reimbursement from the Insurance company. The Insurance
 251

companies have been able to extend their reach as a result of these

innovations and medical premium is perhaps the second largest component of
the total premium collected by the Insurers.

14.05. The Arogyasri scheme of the State has borrowed extensively

from the above experience of the Insurance Companies and has, by all
accounts, been a resounding success. The employees and the pensioners want
the extension of the Arogyasri Scheme. The Commission, therefore,
requested the Arogyasri Trust to prepare a scheme which was then placed
before the Associations of the employees and the pensioners. While the
scheme drew considerable support from the pensioners, the serving
employees have opposed it.

14.06. The reservations to the scheme seem to be based on

apprehension that (i) the Government is withdrawing from their commitment
to provide medical facilities to the serving and retired employees; (ii) that the
cover is limited and would involve the beneficiaries meeting a part of the
expenditure if he repeatedly gets hospitalized in the same year or he and his
family members require hospitalization where the limit of Rs. 2 lakhs is
exceeded; and (iii) the employee has to meet the cost of cover through
payment of a fixed amount to the Government

14.07. The above reservations can easily be addressed. In some cases

these are mere apprehensions which require clarification. In the first instance
there is no withdrawal by the Government from its commitment to provide
health facilities to the employees. In the proposed scheme, the Government
purchases a group insurance cover on behalf of its employees and it is,
therefore, a transaction between the Government and insurance company.
The Company thus administers the scheme on behalf of the Government. The
Commission’s own understanding is that there is great discontent with the
manner in which the scheme is administered by the Government at present.
The experience of Public and Private Sector Companies who have a medical
scheme for their employees have adopted the pattern now suggested with
encouraging results. The satisfaction levels among the beneficiaries is quite
high more so with a number of Insurance Companies vying with each other
for business. Many Companies give greater weight to quality of service than
the quantum of premium while deciding on the entrustment of the scheme to
the insurer. In all those cases there is a cashless facility that is assured to the
beneficiary. The apprehension that the Government is withdrawing from the
scheme is not true and it is the Government that buys the insurance and not
the employees or pensioners. Since insurance contracts are annual contracts,
the Government can always revert to the existing system if the experiment
does not find favour with the employees or the results are not encouraging.
 252

14.08. The second issue relates to possible inadequacies in the extent

of cover. The premium is charged with reference to the type of cover
purchased. The higher the cover the greater will be the financial outgo.
Instances where repeated hospitalization for self or a family are rare
occurrences. Instead of purchasing high cover for all by paying a premium,
Government can set apart some amount to meet such contingencies on a case
to case basis. What is required is a streamlining of the process and
constitution of a separate Fund for this limited purpose.

14.09. The third issue relates to individual contributions which are

proposed to be collected by the Government as part of the scheme. This is not
unusual. If the Factory workers and Central Government employees can
contribute for their medical facilities, there is no reason why the State
employees should not pay some contribution for this purpose. As regards
quantum, it depends on the type of facilities sought by the employees and the
ease with which they would like to access those facilities.

14.10. We believe that the present drawbacks in the medical

reimbursement scheme can be overcome not by tinkering with it on the
periphery but by replacing it by a more modern and sophisticated system
which luckily is available now. The advancements in modern medicine and
the proneness to diseases due to work related stresses and strain and the
increasing costs of treatment call for radical solutions and a shift from the
traditional approach. We have, therefore, appended a Scheme at the end of
this Chapter, which the Government might like to introduce starting from
2010-2011. If the employees have reservations, a beginning may be made
with pensioners, if the Insurance Companies are able to offer a cover at
affordable rates to that section of the population.

14.11. While we would have liked to see the ushering in of the new
scheme, we are aware that it may take some time to get it implemented. In
the interregnum we have made the following recommendations in respect of
the existing scheme in response to the representations received by the
Commission from the various Associations.
1. Deletion of provision relating to 10% cut on the amount admissible
14.12. At present 10% cut is imposed on the amount admissible for the
reimbursement of medical expenses by the employee/ pensioner in cases
where the treatment was taken in a recognized hospital without any referral
letter from Govt. Hospital/ NIMS/ SVIMS.
14.13. The associations represented to remove this cut of 10% on the
ground that the hospitals have to charge only at the package rates of C.G.H.S/
NIMS/ SVIMS and that in cases where the hospitals charge more than the
package rates, the scrutinizing authorities are admitting the claim only as per
the package rates.
 253

14.14. As per the consolidated instructions issued in G.O.Ms.No.74

HM & FW Dept. Dt:15-3-05 as further modified, the claim for reimbursement
is permissible only as per the package rates of C.G.H.S/ NIMS/ SVIMS. In
such a situation, there is no need to impose any further cut of 10% solely on
the ground that the employee obtained treatment without any referral letter
from Govt. Hospital/ NIMS/ SVIMS. Even in cases where the treatment is
obtained after obtaining a referral letter from the Govt. Hospital/ NIMS/
SVIMS, the claim has to be restricted to C.G.H.S/ NIMS/ SVIMS package
rates only. We are of the view referral places an unnecessary burden on the
family which is already under severe strain due to the indisposition of the
family member. The commission feels that imposition of any cut in the
admissible amount is not justifiable. PRC 2005 also recommended not to
impose10% cut. The Commission, accordingly recommends the removal of
the provision relating to imposition of cut of 10% on the amount admissible
where treatment was obtained in the recognized hospitals.
2. Recognition of some Private Hospitals in semi urban areas as
referral Hospitals
14.15. Some of the pensioner Associations have requested to
recommend recognition of some Private Hospitals in semi-urban areas so that
it will be possible for the pensioners living in nearby villages to undergo
treatment in those hospitals without necessarily coming to the District
Headquarters or other far off places.
14.16. Govt. had already recognized some private hospitals situated in
some of the district headquarters, towns, and in some urban areas also. The
Commission is in agreement with the request and accordingly recommends to
explore the possibility of recognizing some more hospitals located in semi-
urban areas as referral hospitals, where there are facilities for undergoing the
treatment.
3. Entitlement of wards for the in-patient treatment

14.17. In para 9(2) of G.O.Ms.No.74 H,M, F&W Dept. Dt:15-3-2005,

the entitlement of wards for the inpatient treatment of the State Govt.
employees was specified wherein all the employees are categorized into three
grades based on their scales of pay as mentioned below:
(i) Scale of pay upto - Rs.5000-10,600 - General Ward.
(ii) Scale of pay - Rs.5300-11300 to
Rs.8400-16525 - Semi Private Ward.
(iii) Scale of pay - Rs.9000-16525
and above - Private ward.
(The scales are
1999 PRC scales)
 254

14.18. The pensioners Associations have requested that the pensioners

also be made eligible for entitlement of wards on the basis of the post in
which the pensioner retired or on the basis of the gross pension.

14.19. The scale of pay of the serving employees undergoes revision

once in five years. It, therefore, becomes necessary to issue amendments to
the entitlement of wards in respect of serving employees also as and when the
scales are revised. Already the scales of pay were revised in PRC 2005 and
were modified by OMC 2006. But no amendment seems to have been issued
incorporating the revised scales. If such an amendment is not issued in time,
these orders will become inoperative. As such the Commission recommends
categorization of the serving employees as also pensioners into the following
three categories for purpose of entitlement of wards for inpatient treatment.

Sl. Serving Pensioners Entitlement of

No. employees wards
1 Gazetted Pensioners whose gross pension is Private ward
Officers Rs.15000/- p.m. and above
2 Non- Pensioners whose gross pension is Semi-Private
Gazetted more than Rs.7500/-p.m. but less ward
Officers than Rs.15000/- p.m.
3 Last grade Pensioners whose gross pension is General ward
employees less than Rs.7500/- p.m.

14.20. If however, any employee/ pensioner prefers other than the

entitled ward, his claim may be restricted to the charge relating to the ward to
which he is eligible.

4. Essentiality Certificate

14.21. As per the existing rules, essentiality certificate has to be

enclosed to the claim of reimbursement of medical expenses incurred by an
employee/ pensioner either in the Govt. hospital/ Private hospital. It is
brought to the notice of the Commission that the recognition was issued to
certain hospitals upto a particular period only. Thereafter the employees/
pensioners do not know whether the recognition issued is continuing on the
date of treatment or not and also at the time of passing of the bills the treasury
officers are insisting on the individual for furnishing the number of the
recognition and date upto which the recognition is valid. The associations
therefore suggested to issue instructions to all the recognized private hospitals
to compulsorily note the order number and the date in which it was
recognized and the date upto which the recognition is valid on the essentiality
certificate itself. This Commission agrees to the request of the Associations
and accordingly recommends to issue instructions to all the recognized private
hospitals to compulsorily note the order number and the date in which it was
 255

recognized and the date upto which the recognition is valid on the essentiality
certificate itself.
5. Medical reimbursement to the dependents of family pensioners
14.22. As per para 9(1) (a) of G.O.Ms.No.74 H,M & FW Dept. Dt:15-
3-2005 as amended in G.O.105 H,M & FW Dept. Dt:9-4-2007 reimbursement
of medical expenses incurred by the State Govt. employees both in service/
retired and their dependents, family pensioners, M.L.A’s and their family
members and all other eligible categories as per A.P.I.M.A. Rules is
permissible. Therefore, the dependents of family pensioners are not included
in the above rule.

14.23. The employees associations have requested to allow medical

reimbursement to the dependents of family pensioner also.

14.24. The obligation of the Government is towards its employee while

he is in service and also after his retirement. The Government, as a welfare
measure extended to the spouse the benefit of family pension and medical
reimbursement. The concept of welfare has its limitations and extension of
benefits to dependents of family pensioner would be a classic example of
excessive concern for one small section of the population when the State has
larger responsibility of providing welfare to a vast majority of people who do
not have any support except the daily wages they earn.

14.25. The Commission is not in favour of including the dependents of

family pensioners for purpose of eligibility to reimburse the medical expenses
incurred by the family pensioners towards their treatment.

6. Dispensing with the scrutiny certificate separately in cases where

treatment is obtained in NIMS/ SVIMS:

14.26. As per para 9 (13-A) of G.O.Ms.No.74 HM & FW Dept. Dt:15-

3-2005 as amended in G.O.105 HM & FW Dept. Dt:9-4-2007, NIMS
Hyderabad and SVIMS Tirupathi should also issue a separate scrutiny
certificate with final bills on the net eligibility of the claim. This will enable
the department to take necessary action for sanctioning the claim for
reimbursement without any further scrutiny by Medical authorities.

14.27. The employees association requested to dispense with the

system of obtaining scrutiny certificate separately in those cases.

14.28. When the treatment is obtained in NIMS/ SVIMS, the hospitals

are obliged to charge the bills as per their rates only. When such is the
position, it is not clear as to why a separate scrutiny certificate has to be
furnished by the hospitals themselves. Therefore, the claims can be admitted
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straight away by the sanctioning authority without insisting upon separate

scrutiny certificate. The Commission accordingly recommends to dispense
with the procedure of insisting on a scrutiny certificate separately in cases
where treatment is obtained in NIMS/ SVIMS.

7. Reimbursement of the cost of O.P. treatment in the recognized

private hospitals

14.29. In the Govt. hospitals O.P. treatment is free to the employees/

pensioners but in NIMS/ SVIMS or in recognized private hospitals the
employees/ pensioners have to pay consultation charges etc. for out patient
treatment.

14.30. The employees associations have requested to allow

reimbursement of the cost of out patient treatment for all the diseases in the
recognized private hospitals. They have further requested not to insist on the
counter signature of Govt. doctor for the O.P. treatment obtained from a
Specialist doctor of the recognized private hospitals for the post operative
cases in respect of certain specified diseases.

14.31. As per para 9(4) of the G.O.Ms.No.74 HM & FW Dept. Dt:15-

3-2005,
“All types of out patient (treatment) including diagnostics, and
follow up treatments including Chemotherapy, Radiotherapy,
Regular Dialysis for Kidney are allowed for reimbursement when
the treatment (is) obtained at Nizam’s Institute of Medical
Sciences, Panjagutta, Hyderabad and Sri Venkateswara Institute
of Medical Sciences Tirupati and all Govt. Hospitals. In respect
of the treatment obtained as Out-Patients in private hospitals
recognized by State Govt., medical reimbursement is allowed for
chemotherapy and radiotherapy for cancer, and regular dialysis
for Kidney and also Out Patient treatment for Cardinal diseases
like cardiac diseases and severe neurological problems and
A.I.D.S. are included. The length of out patient treatment period
should be recommended by the specialist doctor concerned and
shall be scrutinized by the Director of Medical Education,
Nizams Institute of Medical Sciences, Hyderabad, Sri
Venkateswara Institute of Medical Sciences, Tirupati or other
scrutinizing authorities as prescribed”.

As per para 9 (5) of the above G.O.

“In respect of life long follow up treatment to certain diseases, for
every follow up treatment for post operative cases, who requires
life long treatments, the concerned patient has to get revalidation
of prescriptions once in six months from the specialist Govt.
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doctor and reimbursement be allowed on submission of scrutiny

report of the Director of Medical Education or other scrutinizing
authorities concerned.”

14.32. Thus the O.P. treatment of serious diseases is already covered in

para 9(4) & (5) of the G.O. For other than those diseases the possibility of
misuse is high and we are not inclined to recommend reimbursement in those
cases. As regards the second request i.e. to dispense with the counter
signature of Govt. doctor the Commission apprehends that such a facility may
avoid the hassle of getting initial approval but there is a distinct possibility of
claims being rejected due to difference in perception about the essentiality of
a drug or a procedure between the treating physician and the scrutinizing
officer. This can be avoided if the counter signature is obtained in the initial
stage itself. We, therefore, do not recommend any change in the present
position.

8. Delegation of enhanced powers of scrutiny and sanction

14.33. As per para 9(6) of G.O.Ms.No.74 HM & FW Dept. Dt:15-3-05

scrutiny of the claims of medical reimbursement upto a value of Rs.25000/-
has been delegated to the District Hospital Superintendent/ Superintendent of
Teaching Hospitals. Similarly, as per para 9(7) of G.O.Ms.No.74 HM & FW
Dept. Dt:15-3-2005, powers were delegated to all District level Officers of all
the departments to sanction the medical reimbursement claims upto a value of
the Rs.25000/- after they are scrutinized by the District Hospital
Superintendent/ Superintendent of Teaching Hospital.

14.34. The employees/ pensioners associations have requested to

enhance the power of scrutiny and sanction from the existing limit of
Rs.25000/- to Rs.50000/-

14.35. The Commission sees there is some justification in the request

of the associations in view of the increase in the cost of treatment and cost of
medicines etc. The Commission, therefore, recommends delegation of the
powers of scrutiny of claims of medical reimbursement upto Rs.50000/- to
District Hospital Superintendents/ Superintendents of Teaching Hospitals and
for the delegation of sanction of claims of medical reimbursement upto
Rs.50000/- to the District Level Officers.

9. Master health checkup for the pensioners/ Family Pensioners

14.36. As per the existing provisions Master Health checkup to the

serving employees who crossed the age of 40 years and before retirement/ life
time is permitted only for three times with an interval of one year between
each checkup. The ceiling limit for each Master Health checkup is Rs.3000/-
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14.37. The pensioners Associations have requested to extend the

provision of Master Health checkup to the Pensioners/ Family pensioners also
once in an year. We feel that all the benefits available to serving employees
cannot be extended to pensioners. This is one such case. We are unable to
support the proposal.

10. Treatment of all accident cases and all emergent cases in the
unrecognized private hospitals

14.38. As per para 9 (9) of G.O.74 in respect of “Road accident” cases

if an employee/ pensioner or their dependents are admitted in an emergency
condition, in a nearby unrecognized private hospital to save the life of patient,
the claim can be considered for reimbursement upto a limit of Rs.25000/- by
the Head of the Department concerned. For claims over and above Rs.25000/-
the claim has to be sanctioned by the concerned Administrative Dept. in
Secretariat for obtaining relaxation of rules duly consulting the Finance Dept.
The pensioner’s Associations and the associations of serving employees have
requested to recommend deletion of the word ‘road’ occurring in the para so
that all types of accident cases can be got treated in the unrecognized private
hospitals in emergencies to save the life of the patient. They have further
requested to recommend for treatment in unrecognized private hospitals in
cases of emergencies with a view to save the lives of patients.

14.39. The Commission feels that the intention in permitting treatment

even in unrecognized hospitals is that when accidents occur the treatment has
to be given immediately. Hence the restriction to limit it only to road
accidents is not justified. The Commission therefore recommends deletion of
the word ‘road’ occurring in para 9(9) of G.O.74. As regards the other request
to permit the treatment in unrecognized private hospitals in case of
emergencies the Commission is unable to accept it as it is difficult to define
‘emergency’.

11. Dispensing with the essentiality certificate in certain cases

14.40. As per the existing provision, for purpose of claim of

reimbursement of the medical expenses by an employee/ pensioner in the case
of tests, medicines or surgical procedure by a specialist doctor in Govt.
hospital an essentiality certificate has to be enclosed.

14.41. The associations of employees/ pensioners requested to dispense

with obtaining of essentiality certificate in the above cases since those were
prescribed by a Specialist doctor in the Govt. hospital.

14.42. PRC 2005 has suggested to dispense with the requirement of

essentiality certificate where tests, medicines or surgical procedures were
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prescribed by the concerned specialists in the Govt. hospitals. It was not

brought to the notice of this Commission whether any action was taken by the
Govt., in this regard. Apparently no orders were issued by the Govt. in this
regard since the employees/ pensioners have renewed their request made to
PRC 2005. This Commission therefore reiterates that where tests, medicines
or surgical procedures are prescribed by the concerned specialist doctor in the
Govt. hospital, the requirement of further essentiality certificate may be
dispensed with.

12. Issue of letter of credit in the case of pensioners

14.43. As per para 9(14) of G.O.Ms.No.74 HM & FW Dept. Dt:15-3-

2005, the Heads of Departments and the District level officers are permitted
to issue letter of credit to the private hospitals recognized by State Govt. for
treatment/ operations to their employees and their dependents for the major
ailments specified in this para based on the submission of estimate and
acceptance of the credit from the recognized private hospitals subject to the
ceiling limit as per package rates prescribed by the Govt. For this purpose,
Govt. also directed the departments to issue I.D. cards to all the eligible State
Govt. employees and their dependents for availing of letter of credit facility.

14.44. The pensioners associations have requested to extend the system

of letter of credit in the case of treatment of pensioners and their dependents
also in the recognized private hospitals.

14.45. In view of the operational difficulties in dealing with such

advances which have to be settled with the submission of final bills, we are
unable to accept the request of the pensioners for issue of letter of credit.

13. Extension of medical facilities to the staff of aided institutions/

universities

14.46. Several associations including the Hon’ble M.L.Cs representing

Teacher constituencies have requested to extend the medical facilities to the
employees/ pensioners belonging to the aided institutions as admissible to the
Govt. employees/ pensioners.

14.47. This is a long standing demand and as pointed out by the

commission elsewhere in the Report these institutions were set up as a
substitute for Government opening schools and colleges to meet increasing
demand for educational facilities. The Commission feels that there is need for
extension of the medical facilities to the serving employees who are covered
by grant in aid and those who retired and are drawing pension from
Government.
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14.48. We are aware that many of the Universities have dispensaries to

meet the immediate needs of its employees. It is not clear whether the
Universities have any scheme for reimbursing expenditure incurred by their
employees / pensioners for meeting their medical needs involving
hospitalization etc. If they are not covered by any scheme, they also deserved
same assistance.

14.49. The Commission is aware that there are financial implications to

the immediate extension of the scheme to the above categories of employees.
They may, therefore, be brought into the fold of medical benefits when the
insurance scheme is launched by the Government.

14. Payment of medical allowance

14.50. Almost all the associations of employees and pensioners are

unanimous regarding payment of medical allowance to meet the day to day
medical expenses. The quantum of allowance requested for differed from
Rs.100/- p.m. to Rs.2000/-p.m. from different associations.

14.51. It is possible for the employees in service, to go to the Govt.

Hospitals/ Dispensaries and have consultation/ obtain medicines required for
their ailments. But it is not possible for the Pensioners/ Family Pensioners to
have such a facility in view of their advanced age and difficulties in their
mobility. As such the Pensioners/ Family Pensioners deserve sympathetic
consideration in the matter. The Commission therefore recommends payment
of Medical Allowance of Rs.200/- p.m. to the Pensioners/ Family Pensioners.
This may be disbursed along with their monthly pension.

15. Removal /enhancement of ceiling limit

14.52. At present the maximum ceiling limit for the following major
ailments is Rs.2.00 Lakhs irrespective of the package rates of C.G.H.S.

1. Bypass heart surgery,

2. C.A.B.G.S.,
3. Double valve replacement,
4. Open heart procedure,
5. Aortic valve replacement,
6. Kidney transplantation,
7. Cancer; and
8. Neuro surgery to brain.

14.53. In the case of treatment of other than the above ailments and
also other than dental ailments, if package rates in C.G.H.S., NIMS/ SVIMS
 261

are not available, the ceiling limit is Rs.1.00 lakh for serving employees and
Rs.75000/- for pensioners.

14.54. The associations have requested to remove the ceiling limits and
to allow only C.G.H.S. rates. Some associations have requested to enhance
the ceiling limit ranging from Rs.3.00 lakhs to Rs.5.00 lakhs. In support of
their argument they have mentioned some individual cases costing more than
Rs.5.00 lakhs for their treatment of multiple diseases simultaneously by the
same employee in the same recognized private hospital.

14.55. If there is no ceiling the tendency among the recognized private

hospitals would be to inflate the charges. The particular instances quoted by
the association are rare ones. In such cases they can as well approach the
Govt. for relaxation of rules explaining the circumstances and claim full
amount. Therefore, the Commission is not in favour of either increase in the
ceiling limit or to remove the ceiling limit.

16. Removal of the restriction of three times in the entire service for
the treatment of the same disease

14.56. In para 9(22) of G.O.Ms.No.74 HM & FW Dept. Dt:15-3-2005,

it was stated that no restriction is imposed for the treatments obtained in
private recognized hospitals for different ailments operations/ treatments.
Medical reimbursement facility for major ailments i.e. CABGS, kidney
transplantation, cancer, neurosurgery, PTCA STENT be restricted to three
spells for each of these diseases. Three spells means, three surgeries for the
same ailments, except for Orthopedic and Plastic Surgeries, where more
number of operations are warranted for the treatment of the same cause. A
Justification Certificate issued by the concerned specialist treating doctor of
the private hospital recognized by Govt. / Govt. hospital should be submitted
for the second and third spell claims.

14.57. The employees associations have requested to remove the

restriction of three times in the entire service for the treatment of the same
disease.

14.58. The existing position referred to above is quite adequate and the
Commission therefore recommends to continue the same provision.

17. Dispensing with the method of scrutiny by the Director of Medical

education or other officials of the medical department

14.59. As per the existing provisions the claims of medical

reimbursement by the employees/ pensioners have to be scrutinized by the
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Superintendents of District Hospitals/ Director of Medical Education

depending on the amount of claim.

14.60. The pensioners/ employees associations requested to dispense

with the procedure of scrutiny by the medical authorities by communicating
the C.G.H.S. package rates to the sanctioning authorities to check before
sanction.

14.61. The claims of medical reimbursement have to be restricted to

the C.G.H.S. package rates/ NIMS/ SVIMS package rates. In cases where the
package rates of the above institutions are not available for any particular
treatment, the medical authorities are the proper authorities to check the
admissibility of the claim. The CGHS rates are indicative and it is not
necessary in all cases that the patient would be required to obtain treatment to
cover the entire expenditure indicated in the rates. Therefore, it is inevitable
that the claims of the employees/ pensioners for reimbursement of medical
expenses have to be scrutinized by the medical authorities before sanction.
The Commission therefore, declines to accept the request.

18. Extending the facilities of reimbursement of medical expenses as

applicable to the State Higher Judicial Officers
14.62. It was proposed by some organizations that the facilities
extended to the Judicial Officers regarding medical treatment may be
extended to Government Servants and also to pensioners.

14.63. The orders issued in G.O.Ms.No.107 Law Department, Dt:14-7-

2006, are based on various judgments of courts. The Govt. employees/
pensioners are already governed by A.P. Integrated Medical Attendance Rules
as subsequently modified in G.O.Ms.No.74 HM & FW Dept. Dt:15-3-2005,
and are amended from time to time. The Government has been quite liberal
in extending medical facilities to its employees and pensioners. We feel that
the existing facilities are adequate and if any change is required it should be in
the direction of moving away from Government lead medical reimbursement
to a more refined and sophisticated system that provides for cashless facility.

19. Maximum limit for dental treatment

14.64. As per sub para 3(a) of para 9 of G.O.Ms.No.74 HM & FW

Dept. Dt:15-3-2005, as amended in G.O.Ms.No.105 HM & FW Dept. Dt: 9-4-
2007 the following procedure has to be followed in respect of dental treatment
cases.

a. “The employee should approach Govt. Hospital, i.e. Teaching Hospital

or District Headquarters Hospital or APVVP Area Hospital for Dental
treatment or where facilities are not available, obtain referral letter
 263

before approaching any recognized Dental Hospital for treatment.

With prior permission of the concerned Govt. Hospital only, one
should obtain dental treatment in recognized dental hospitals.

b. Reimbursement in respect of treatment for dental diseases to each of the

employee or their dependents separately in the entire service or life as
the case may be, shall be limited to three times and the ceiling limit
shall be Rs.10,000/- (Rupees then thousand only) for each time.
i. No relaxation of rules be accepted for sanction of claim beyond
Rs.10,000/- (Rupees then thousand only) in any case.

ii. With regard to cosmetic dental surgery, claims regarding Cosmetic

dental surgery are not eligible for any medical reimbursement,
except in case of Road Traffic accidents involving upper and lower
jaws.”
14.65. The associations of the employees and pensioners have
suggested to enhance the maximum limit for dental treatment from
Rs.10000/- to Rs. 30000/- and further requested not to restrict the number of
chances to three times in the life time.

14.66. The commission feels that the existing scheme is adequate and
requires no further relaxation.

20. Medical advance to the pensioners

14.67. In G.O.Ms.No.445 HM & FW Dept. Dt:19-7-91 orders were

issued permitting the Heads of Departments to sanction medical advance to
serving Govt. employees for treatment obtained in NIMS Hyderabad. This is
based on the estimation at package rates of NIMS and is applicable for the
following ailments/diseases.

1. Acute Mycardial Infracture,

2. Acute Renal Failure,
3. Severe Cases of Head and Spinal injury, Road accident, and
4. Cases pertaining to Coma.

14.68. In para 9 (12) of G.O.Ms.No.74 HM & FW Dept. Dt:15-3-2005,

the following major diseases are also added for the sanction of medical
advance.

1. PTCA-STENT,
2. Open Heart Surgery,
3. Pace maker,
4. All organs transplant,
5. Plastic surgery done for accident cases and burns, and
6. Mitral valve replacement.
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14.69. It was also stated in G.O.Ms.No.74, that the advance can be

sanctioned at the package rates of NIMS Hyderabad/ SVIMS Tirupathi based
on the estimation given by them.

14.70. The pensioners associations requested to extend the facility of

medical advance to the pensioners/ Family pensioners also as is applicable to
Govt. employees in service.

14.71. The issue was dealt with while examining the request for issue
of Letter of Credit in the case of private hospitals. The considerations are not
different here. The commission is unable to accept this request for the
reasons already referred to earlier.
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APPENDIX
Health Insurance Scheme for Government Employees & Retired
Pensioners

1. Introduction: The employees of the State Government are currently

governed by the A P Integrated Medical Attendance Rules, 1972, amended
from time to time, for all aspects relating to treatment of diseases through
investigative, diagnostic, medical and surgical services, provided by an
authorized medical attendant. The salient features of the existing scheme are
as follows:

a. Treatment includes provision of investigative, diagnostic, medical,

surgical, nursing and blood transfusion services besides accommodation
and diet in the hospital.

b. Entitlement extends to the employees of the government, local bodies,

MLAs, pensioners and family pensioners, including work charged
establishment.

c. Entitlement also extends to dependants of the above categories, excepting

the dependants of family pensioners.

d. Treatment can be given in Government hospitals, recognized private

hospitals and hospitals outside the State visited by the employees on duty
or on leave. There are about 350 private hospitals recognized by the DME
for this purpose.

e. Treatment abroad is permissible with prior approval. List of medicines

inadmissible for reimbursement has been specified.

f. A system of treatment by recognized private hospitals on the strength of a

Letter of Credit issued by HOD is in vogue. Ceiling of Rs. 2 Lakhs is
applicable for each episode of treatment.

g. Employees of Police and Excise departments are currently covered under

the Suraksha scheme, which provides for an improvement over the IMA
scheme to the extent of being nearly cashless, through a contributory
mechanism, involving payment of Rs. 65 per month by each employee.

2. The number of employees/ pensioners availing benefit under the

existing scheme is indicated below:
 266

Sl Total Deduct Net No. of

No Category Number Police & Beneficiaries
In Lakhs Excise In Lakhs
1 Gazetted Employees 1.06 0.03 1.03
2 Non - Gazetted 6.02 0.95 5.07
Employees
3 Other Employees 1.26 0.05 1.21
4 Service Pensioners 2.91 - 2.91
5 Family Pensioners 1.91 - 1.91
TOTAL 13.16 1.03 12.13

3. Problems of the Present System: The present system suffers from several
disadvantages like the following:

a. Employees / pensioners have to pay first for the treatment taken in

authorized private hospitals and this creates problem when disease is
serious and the treatment thereof expensive.

b. Procedural delay in obtaining reimbursement and uncertainty in quantum

of reimbursement pains the employees / pensioners.

c. Hospitals are not subject to any meaningful regulation either in terms of

quality of services rendered or the money charged for the treatment.

The above problems have prompted the need to undertake reforms in the
area. The reforms should improve efficiency of the existing scheme and also
provide significant benefit to the employees/ pensioners.

4. Rajiv Aarogyasri Scheme that has been implemented in the State with
effect from 1.4.2007 to provide to BPL families facility for treatment of
serious ailment can be taken as a guide to formulate a new scheme to benefit
employees. Cashless arrangement with network hospitals is one of the key
elements of this scheme whereby a beneficiary once registered does not have
to pay for his treatment at all. This has become possible by evolving an all
inclusive ‘Package Rate’ for the medical treatment. The rate includes the cost
to the hospital of conducting health camps, screening of patients, diagnostics,
testing, treatment, food, transport and follow-up. Adoption of package rates
has enabled economy from the scale of operation and in securing to BPL
patients standard treatment in hospitals.

5. A new scheme is accordingly outlined in the following pages to

provide medical cover to government employees and retired pensioners to
gain following advantages:

a. Cashless treatment
b. Free consultation and prescription
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c. MOU with hospitals for better and specialized services

d. Network of hospitals to choose from for treatment;
e. IT technology for paperless process;
f. Medical records in electronic format for use at all time; and
g. Round the clock ‘Call Center’ and ‘Facilitation service’ for patients.

Scheme for Health Insurance of Government Employees & Retired Pensioners

1.0 Name:
The name of the scheme is ‘Health Insurance Scheme for Government
Employees & Pensioners’.

2.0 Objective:
To provide to government employees, pensioners and to their family
members easy access to quality medical care for treatment of pre - identified
diseases requiring hospitalization, through an identified network of hospitals.

3.0 Beneficiary Coverage:

a. The scheme will be applicable to all government employees, working

as well as retired who are physically residing within the state of Andhra
Pradesh. Employees working outside the State will continue to be governed
by the existing IMA Rules.

b. It is estimated that the families of 7.31 lakh employees and 4.82 lakh
pensioners will be benefited by this Scheme. The scheme will have to be
applied to all the employees/ pensioners compulsorily, so as to maintain
financial viability.

c. An electronic health card containing the bio-metric data of the

employee/ pensioner and their family members along with a unique ID will be
issued to all employees and pensioners before the start of the scheme.

d. For any particular category of govt. employees entitled for special

treatment and facilities, the proposed scheme may not suit and for such
categories, present reimbursement scheme may continue.

e. Employees of the Police, excise, Universities and State PSUs are not
covered.

4.0 Disease Coverage

a. A list of diseases for coverage under scheme is to be pre-identified.

Aarogyasri scheme provides for cashless treatment of 942 medical and
surgical procedures and follow-up treatment for one year for 121 procedures.
This list covers majority of serious illness requiring hospitalization.
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Hospitalization for treatment is a pre- condition. Pre-existing disease load will

be covered.

b. Diseases under Aarogyasri scheme are selected on the criteria of life

threatening requiring specialist doctors and equipments and treatment
following a defined protocol with verifiable pre- operative and post operative
diagnostic indications. Specific exclusions are heart & liver transplant, knee
& hip bone replacement, normal delivery and c sections and diseases covered
by national program such as leprosy, TB, HIV/ AIDS etc., and also common
diseases for the treatment of which there is no verifiable protocol, and which
do not require hospitalization.

c. The list of diseases to be covered under the scheme can be modified.

This will, however, directly impact the financial outgo. Any additions have to
be carefully thought out or this may lead to heavy leakage and misuse of
funds. Experience gained from Tamil Nadu indicates possibility of such
misuse in diseases like cataract ( fixation of IOL), removal of uterus/ ovary,
hernia, appendecectomy, implants, certain brands of medicines etc.

d. For diseases/ treatments not covered by the scheme, a separate buffer

amount can also be set apart or employees can be allowed to continue to seek
reimbursement from government as per the existing rules or the employees in
such cases be asked to undergo treatment in government hospitals.

e. General and specialist consultations and prescriptions by network

hospitals can be built into the scheme. However, no provision can be made for
supply of medicines on such OP prescriptions.

f. In case of chronic diseases such as Hepatitis, hypertension, diabetes

and metabolic dis-order requiring continuous medication for life, separate
arrangements would have to be worked out.

5.0 Hospital Services:

a. Choice of hospital for treatment from among empanelled hospitals will

be given to patient. Appropriate procedure will be laid for empanelment of
hospitals, based on pre-fixed criteria of availability of infrastructure,
equipment and qualified personnel.

b. Hospitals located within the state of Andhra Pradesh will be eligible to

participate in the scheme. This is so to ensure proper regulation of hospitals
and ensuring their compliance to laws of Andhra Pradesh.

c. Patient facilitation will be done through a dedicated ‘Call Center’ and a

‘Help Desk’ at each network hospital.
 269

d. Treatment to be provided in hospitals will be as per pre-fixed medical

protocols and it will be uniform for all, irrespective of the grade of the
employee/ pensioner.

e. Single or shared room or General ward accommodation will be

provided as per the entitlement under the AP Integrated Medical Attendance
Rules and also depending on the hospital and its availability.

f. Hospital should be in a position to provide following for the

beneficiaries of the scheme:

i. Provide free ambulance for emergency patient, free OPD

consultation and free diagnostic tests and medical treatment to
beneficiaries irrespective of surgery/ treatment.

ii. Provide services of a medical officer to work as Medical

Coordinator for the scheme for various activities including Health
Camps, Follow-up of referred patients from camps, diagnosis, out
patient details, E Preauthorization, Surgeries, Feed back on the
patient’s condition etc.

iii. Conduct minimum one free Health Camp in a month for screening
of patient. Hospital may have a mobile team with diagnostic
equipments and team of doctors for this purpose. Hospital shall
provide services of a medical Camp Coordinator for organisation
of health camps.

iv. Provide follow-up free consultation diagnostics and medicines

under follow-up packages for identified procedures.

v. Provide space and separate counter/kiosk and Computer with

networking i.e. dedicated broadband with minimum 1mbps speed,
printer, scanner, bar code reader and digital camera.

6.0 Sum Insured

a. The scheme shall provide coverage for meeting expenses of

hospitalization and surgical procedures of beneficiary members up to Rs.1.50
lakhs per family per year subject to limits, in any of the network hospitals.
The benefit to family will be on floater basis i.e. the total reimbursement of
Rs.1.50 lakhs can be availed of individually or collectively by members of the
family.
 270

b. A separate fund shall be maintained as Buffer / corporate floater to

take care of expenses; if it exceeds the original sum i.e. Rs 1.50 lakhs per
Individual/family. In such cases an amount up to Rs. 50000/- per
individual/family shall be additionally provided. Quantum of fund can
initially be Rs. 10 crores.

7.0 Administration
a. The Scheme will be administered through an autonomous body, to be
established on the lines of Aarogyasri Health Care Trust with a whole time
Chief Executive Officer and other appropriate number of staff drawn from
medical, administration and finance on deputation or on contract.
b. Organization structure and infrastructure requirements of the new Trust
will have to be formulated separately. Trust will have the authority to engage
needed specialists and to put in place required infrastructure and staff for
implementing the scheme and maintain accounts.

8.0 Implementation by Insurance Company

a. An insurance company will undertake the health insurance of
employees and provide risk cover, on payment of premium. Selection of
insurance company will be done through a process of competitive bidding
(technical & financial) and quote of lowest premium, similar to what is now
being followed for Aarogyasri scheme.
b. Implementation of scheme will be on line through an IT portal for
efficiency, transparency and accountability. An IT company will construct
and maintain software, hardware and all data and medical records pertaining
to the scheme. Expenditure required for developing the software and data
centre and the annual maintenance cost will have to be borne by the scheme.
9.0 Cash less Transaction
For each hospitalization the transaction shall be cashless for covered
procedures. Enrolled beneficiary will go to hospital and come out without
making any payment to the hospital for the procedures covered under the
scheme. The same is the case for diagnostics if eventually the patient does not
end up in doing the surgery or therapy.

10.0 Online Claim settlement

Insurance Company shall settle the claims of the hospitals online
within 7 days of receipt of the bills along with discharge summary and
satisfaction letter of the patient.
11.0 Packages

a. The insurer should ensure that the empanelled hospitals follow the
packages worked out by the Trust. The package includes consultation,
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medicine, diagnostics, implants, food, cost of transportation, hospital

charges etc. In other words the package should cover the entire cost of
patient from date of reporting to his discharge from hospital 10 days after
surgery, making the transaction truly cashless to the patient.

b. The Package rate will be based on the package rates approved for
Aarogyasri scheme, suitably adjusted to meet employees requirements
such as better category of accommodation etc.

12.0 Arogyamithras (Health workers) in Network Hospitals:

The Insurance company will appoint at least three Arogyamithras

(Health workers) at all network hospitals to facilitate admission, treatment
and cashless transaction of patient round the clock. The Arogyamithras
should also help hospitals in pre-auth, claim settlement and follow-up. They
should also ensure proper reception and care in the hospital and send regular
MIS. Insurance Company shall provide all Arogyamithras with cell phone
having CUG connectivity with SMS based reporting framework for effective
and instant communication. The insurance company shall ensure that
prefabricated Arogyamithra kiosks with all additional requirements as per the
design approved by the Administering Authority is put up in all hospitals.

13.0 Online MIS and 24 Hour E-Preauthorisation.

The Insurance Company should post enough dedicated staff, so as to

ensure free flow of daily MIS and ensure that progress of scheme is reported
to Administering Agency in the desired format on a real-time basis. The
company should establish proper networking for quick and error-free
processing of preauthorisation. This will be done through a dedicated website.
The up gradation and maintenance cost of the software, hardware,
connectivity and data centre will be borne by the Insurance Company.
Preauthorisation has to be done round- the-clock in co-ordination with
Administering Authority i.e., by a team of doctors from the Administering
Agency and the Insurance Company. The preauthorization team shall have all
the specialists concerned with the systems covered in the scheme on a
permanent basis.

The website will be a repository of information and will have the

following features:

a. General Information on the scheme.

b. Details of patients reporting to the Hospitals on daily basis.
c. Details of Health Camps and daily reporting of health camps.
d. Details of patients getting referred from the health camps.
e. Details of in-patients and out patients in the network hospitals.
f. Costing of the Tests done in the network hospitals.
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g. E-preauthorisation.
h. Surgery details.
i. Discharge details.
j. Real-time reporting.
k. Claim settlement.
l. Electronic clearance of bills with payment gateway.
m. Follow-up of patient after surgery.
n. Distribution of Follow-up medicines.

14.0 State Level Co-Ordination

A Project Office of the Insurance Company shall be separately
established for better coordination. The following departments shall be
established by the Insurance Company in the Project Office:

a. 24 hour call centre with toll free help line

b. MIS Dept. to collect, collate and report data on real-time basis.
c. IT Dept. to ensure website with e-preauthorisation, claim settlement and
follow-up is maintained and updated on 24-hour basis.
d. Pre-authorisation Dept. with specialist doctors to work round the clock
to process preauthorization within 12 working hours.
e. Claims settlement Department with electronic clearance facilities.
f. Health Camp Department to plan, implement and follow-up camps.
g. Publicity Department to undertake all the publicity activities.
h. Grievance Department to be manned by doctors and other staff to
address the grievances from time to time.
i. Follow-up Department to coordinate the follow-up consultation and
distribution.
j. Hospital-Networking department to empanel hospitals in network and
monitor the compliance.
k. Feedback Department to send feedback formats, collect and analyse
feedback of the patients.
l. Legal Department exclusively for the project.
m. Other departments as may be required for Office work.

15.0 Funding of the Scheme:

Funds required for the scheme are to be provided by the Government

to the autonomous body in advance. It is quite essential that a highly efficient
system is designed for remittance of funds to the autonomous body as the
viability and sustainability of the scheme depends on the prompt payment to
be made to the insurance company/ network hospitals.

16.0 Financial Estimates:

Under Aarogyasri scheme, in a select district of Guntur with BPL

families numbering about 12 lakhs, in 9 months of Aarogyasri scheme
 273

implementation, 16,200 persons underwent hospitalization and surgical/

medical intervention at an average cost of about Rs. 35,000 in each case, with
an average stay of 8 days in hospital. For one year, number of expected
surgeries will work out to 21,600. Allowing for higher awareness of selected
group of 12.13 lakh government employees and their physical nearness to
hospitals but with better nutritional standard and hygiene, it is estimated that
around the same number of employees cases will come up annually to seek
treatment under the scheme.

Average cost of treatment per case for government employees is

estimated to go up by Rs. 17,500 per case on the average cost of Rs. 35,000
per case incurred on treatment and general ward stay of an Aarogyasri patient.
The increase will be up to 30 % on account of single / double room
occupancy; up to 10 % for pre-operative investigations and up to 10 % for
health check and specialist consultations. Thus the annual medical bill under
the new scheme is likely to be of the order of Rs. 113.40 crores (21,600
employee patients multiplied by Rs. 52,500 the average cost of treatment of
each employee). In addition, some funds will have to be provided towards the
working and profit margin of insurance company and the administrative
expenses of the Trust. Thus, the total financial outgo under the new scheme
for 12.13 lakh employees is estimated to be around Rs. 120 crores annually.
In terms of premium, this roughly works out to Rs. 900 per family per year.
 274

CHAPTER - XV
Work Charged Establishment

15.01. Long ago, Government delegated powers to the Engineers to

employ temporary staff to assist them in their routine duties and to keep a
watch on the execution of work by the contractors. The establishment
charges of such staff were charged to the Works under Petty Supervision
charges. Such employees are called Work Charged Employees. On
completion of the work on one Project, they are supposed to be transferred to
another ongoing Project or to a new Project depending upon the need. They
are supposed to be temporary employees and the service rules that were
applicable to the regular employees were not made applicable to them.

15.02. Orders were issued in G.O.Ms. No. 407, Public Works

Department dated 27.3.1972, provincialising the services of the Work
Charged Establishment of all categories and branches of Public Works
Department including Public Works (Projects Wing) Department employed in
Maintenance Work, who have put in ten years of service. They were also
extended the benefits such as Leave Travel Concession, Joining time,
Travelling Allowance etc., admissible to similar grades of employees in
Government. Thereafter, Government standardized the categories and pay
scales of the Work Charged vide G.O. Ms. No.. 107, Public Works
Department dated 7.2.1974.

15.03. Government constituted a Committee vide G.O. Rt. No. 577,

General Administration Department dated 6.2.1979 under the Chairmanship
of Sri I.J. Naidu, IAS., the then Chief Secretary to Government to look into
the demands of the Work Charged, NMR and Contingent employees.
Government after examining the report of the said Committee and the
demands of the Work Charged employees, issued the following orders in G.O.
Ms. No. 212, Irrigation and Power Department dated 29.3.1979 read with
Memo No. No. 1300/PAC II/79-1 Irrigation and Power Department dated
23.4.1979:

1. All work-charged employees who have completed 10 years of total

service be made eligible to all benefits like leave, pension etc., on
par with Government employees;

2. All work-charged employees with more than 5 years of service be

made eligible for the benefits now extended to provincialised work
charged establishment under G.O.Ms.No.407, PWD, dated 27-3-
1972 and
 275

3. NMR workers be absorbed in work-charged establishment as and

when vacancies arise.

15.04. The Committee also recommended among other things that

whatever concessions are admissible to temporary employees (Emergency
employees) for absorption as regular employees may also be made applicable
to work-charged employees for absorption into Government service. The
Government accepted the recommendations of the Committee vide
G.O.Ms.No.566, Irrigation and Power Department, dated 5-10-1979.

15.05. A clarification was also issued specifying the benefits that are
admissible to work-charged employees consequent on the issue of the above
orders.

15.06. The Government issued orders in G.O.Ms.No.69, Irrigation and

Power Department, dt.9-2-1981 that the work-charged employees who have
completed 10 years of total service as on 29-3-1979 shall be eligible for
regular or temporary appointment to Government posts (which constitutes
direct requirement) in the departments in which the work-charged personnel
are working without the media of Employment Exchange if they were
originally appointed temporarily through the Employment Exchange,
provided they satisfy the following conditions:

(i) the technical and/or educations qualifications prescribed for the

post by direct recruitment;

(ii) the age qualification prescribed for direct recruitment (they are
not allowed to deduct the service rendered under emergency
provisions of rules for purposes of computing the age limit) and
are selected by the competent authority/ Agency for
appointment.

15.07. Subsequently Government in G.O.Ms.No.130, Irrigation and

Power Department, dt.18-3-1981 ordered that all Work Charged Employees
who have completed 10 years of total service will be regarded as Government
Servants with effect from 20-3-1979 or such subsequent date as and when
they complete 10 years of total service on their existing scale of pay and their
present conditions of work. Consequent to this they are required to retire at
the age of 58 years if they belong to superior service and 60 years if they
belong to inferior service. Exercising of an option is also provided in the
rules.

15.08. Government in G.O.Ms.No.352, Irrigation and Power

Department, dt.7-8-1981, consequent to issuance of orders in G.O.Ms.No.130,
Irrigation and Power Department, dt.18-3-1981, ordered that the Work
 276

Charged Employees who become Government employees in pursuance of the

orders issued in G.O.Ms.No.130, Irrigation and Power Department, dt.18-3-
1981 of Engineering departments of State Government shall be designated as
follows:

1. On Maintenance side as “Maintenance Establishment”

2. On Project Side as “Project Establishment”
3. Other establishments as “Works Establishment”.

15.09. The Work Charged Establishment was also extended

Construction allowance, HRA, loans, Bus Pass Concessions, Drivers Special
Pay, Availment of public holidays to the Work Charged Employees who
opted to become Government servants, including applicability of CCA and
conduct rules, grant of advances, Family Planning increment, maternity leave
for female Work Charged Employees, compassionate appointments on
medical grounds, payment of obsequies charges to the family of deceased
Work Charged Employees, Conveyance allowance, Automatic Advancement
Scheme etc.

15.10. The various submissions made by the Work Charged employees

and their Associations are briefly indicated below:-

a) Appoint qualified work charged personnel to provincial

posts.

b) Assign equal pay scales to the Work Charged Establishment

on par with the provincial establishment, keeping in view of
the qualifications prescribed and the nature of duties
entrusted to that particular post.

c) Change the nomenclature of the Work Charged

Establishment as Engineering Subordinate Establishment

d) Extend the Gallery Allowance allowed to Srisailam Project

employees at 10% of basic pay subject to a maximum of
Rs.250/- to the employees of N.S.P.L. and other projects on
par.

e) Recommend for additional allowance to the employees

working in farms of various departments as conveyance
allowance at 6 to 10% of basic pay.

f) Implementation of the new common category pay scales to

applicants, and to recommend the Govt. assigning the new
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common category pay scale of Rs.1010-1800(in R.P.S.1986)

to all the qualified work charged employees including the
category of Work Inspectors.

g) Uniform pay scales to similar categories working in

Irrigation, R&B and Panchayat Raj Department.

h) The benefits like Special Pay, allowances are not altered to

the disadvantage of the employee holding the respective
posts.

15.11. The main grievance of the Work charged establishment is that

the classification of work charged establishment as “maintenance
establishment” “project establishment” and “works establishment” which was
agreed to in 1981 has not been implemented till now. Consequently the
pressure on the existing employees is increasing as the retirement vacancies
are not filled up. The temporary recruitment for which the powers were earlier
exercised by the Engineers has been withdrawn and ban on recruitments has
further compounded the problem. As a result each one is having jurisdiction
which should normally be covered by 3-4 employees. If on the other hand,
regular employment had taken place after identifying the requirements of the
staff under the above 3 categories the strain on the existing employees would
be considerably reduced. They feel that they are under-paid while being
made to take on additional load of work. This is a genuine grievance which
has to be addressed by the administrative department. Though most of the
projects including the Nagarjuna Sagar project are shown as projects under
execution, they are virtually completed and have been in maintenance phase
for long. There is no reason why the department should not identify the
requirements in maintenance based on an objective criteria, adjust the existing
staff wherever possible and follow the prescribed recruitment process for
filling up of remaining vacancies. We recommend that this exercise may be
undertaken expeditiously.

15.12. The next issue raised is payment of salaries based on Court

directions which held that those with ITI qualifications should be paid scales
based on the common category pay scales of 1986. The common category
was given up by 1993 Pay Commission itself. However, a number of people
who went to the Court seem to have obtained favorable orders which have
become final. This is also an issue which should be examined by the
department as it is a purely administrative issue. The concept of new
common categories was raised by the Anomalies Committee and some orders
seem to have been issued in the year 2004. Any action that is required in
pursuance of these orders may be taken up on priority basis. We have
however, not recommended any pay scales for common categories as the
 278

Government orders issued in 2004 do not seem to have been operationalised

even after a lapse of 4 years

15.13. The Associations have also demanded that there should be

uniform pay scales for similar categories working in the Irrigation, R&B and
P.R.Department. The nature of the work in these departments varies though
the posts may have the same nomenclature. This is an exercise that requires
to be undertaken by the Board of Chief Engineers and make their
recommendations on common categories across various departments which
can then be allowed the same scale of pay. It would be difficult for the Pay
Commission to undertake this exercise given the constraints of time and non
availability of expert inputs.

15.14. The request with regard to the pay scales raised by different
categories are discussed in Volume II of the Report. The general issues
relating to pensions, medical reimbursement, special pays, risk allowance,
leave etc., are covered in separate chapters in this Volume.
 279

CHAPTER - XVI
Full Time Contingent Employees

16.01. Article 63 and 93 of A P Financial Code Volume-I stipulates the

procedure of creation for temporary establishment. The Heads of Departments
and others who are empowered to draw the contingent bills are authorized to
employ unskilled workers at rates of remuneration laid down from time to
time. Contingent employees are classified into two categories. The full time
contingent employees are required to work for 8 (eight) hours a day while the
Part time contingent employees, are required to work for 4 (four) hours or less
per day.

16.02. The issue of regularizing the services of full time contingent

employees has first been addressed by a Committee constituted under the
Chairmanship of Sri I.J. Naidu, IAS (Retd.), former Chief Secretary. Based
on the recommendations of the Committee, Government issued orders in
G.O.Ms.No.38, Finance and Planning (FW-PRC-VI) Department, dated 1-2-
1980. As per these orders, all Full Time Contingent Employees created under
specific Government orders and who have been continued for a period of 10
years or more and are required to be retained on a permanent basis be
converted into regular employees in the last grade services. The orders also
explicitly prohibited further appointment of Full Time Contingent Employees
in all the Departments of Government and Local Bodies.

16.03. Subsequently, Government issued orders in G.O. Ms.No.9,

Finance and Planning (FW) Department, dated 8.1.1981 for conversion of full
time contingent posts which have been in existence for a period of 5 years or
more as on 1st April, 1981. This order has been followed by another order
vide G.O.Ms.No.233 of Finance Department, dated 19.8.1983 wherein it is
ordered that all other full time contingent employees in Government,
including those in Projects not covered by the earlier two orders, be paid a
remuneration of Rs.290/- per month from the date of completion of 5 (five)
years of contingent service as full time contingent employees. DA, HRA and
CCA were also admissible counted on this remuneration. This order has been
modified by G.O.Ms.No.344 of Finance Department, dated 13.11.1989 based
on the agreement reached between the Government and the Joint Action
Committee of the employees, increasing the remuneration to Rs.740/- per
month in 1986 pay scales and permitting them to claim DA, HRA and CCA at
rates applicable.

16.04. Subsequently as per G.O.Ms.No.184, Finance Department,

dated 28-6-1991, the full time contingent employees working in various
 280

projects who fulfilled certain conditions were converted into regular last grade
Government employees in the last grade pay scale of Rs.740-1150.

16.05. The Government issued orders in G.O.(P).No.259, Finance

Department, dt.18-6-1993, for conversion of fulltime contingent employees
into regular Government posts in the Last Grade Service in the scale of
Rs.1375-2375 who were already governed by the orders issued in G.O.No.233
and 344 subject to conditions laid down therein.

16.06. The full time contingent employees who could not be converted
into last grade posts were drawing the minimum basic pay of Rs.740/- p.m.
and DA, HRA and CCA at the revised rates in the successive PRCs. Their pay
was not revised to Rs.1375 in 1993 and to Rs.2550 in 1999.

16.07. The full time contingent employees made a representation to the

Pay Revision Commission, 1999 for enhancement of remuneration as
applicable to the last grade employees. The Pay Revision Commission did not
make any recommendations in respect of Full time Contingent Employees and
recommended for continuation of status quo.

16.08. The Pay Revision Commission, 2005 obtained the information

regarding the number of employees involved who are 7607 as on 1st January,
2000. As per the Director of Treasuries and Accounts, the total number of
full time contingent employees is 4330 and there are 805 vacant posts as on
01-01-2004.

16.09. The PRC, 2005 recommended a minimum remuneration of

Rs.3850/-p.m. i.e., the pay of last grade employee i.e., Attender in the revised
scale and they may be paid HRA, DA and CCA as applicable. Accordingly
orders were issued as per G.O(P).No.238, Finance (PC-III) Department,
dated:23-9-2005.

16.10. Several representations have been received from various

Associations/ Individuals for enhancement of remuneration of fulltime
contingent employees/ part time contingent employees who are drawing a
fixed remuneration of Rs.2080/-p.m. and Rs.1298/-p.m. Another request is
also for regularization their services in the category of fulltime contingent
employee or part time contingent employee as the case may be.

16.11. Another request is for allowing annual increments to those full

time contingent employees who have completed more than 10 years of service
and drawing a remuneration of Rs.3850/- p.m. along with admissible
allowances.
 281

16.12. The Government enacted Act-2 of 1994 for prohibition of

irregular appointments in the offices and establishments under the State
Government with effect from 25-11-1993. Based on the judgment of Supreme
Court of India, the State Government formulated a scheme for regularization
of services of NMR/ daily wages employees who completed 5 years of service
as on 25-11-1993 subject to fulfillment of certain conditions laid down vide
G.O.Ms.No.212, Finance & Planning (FW, PC-III) Department, dated: 22-4-
1994.

16.13. Subsequently the Government issued orders in G.O.Ms.No.112,

Finance & Planning (FW, PC-III) Department, dated: 23-7-1997 for
regularization of services of fulltime contingent employees and part time
contingent employees who have completed 10 years of service as on 25-11-
1993, subject to certain conditions laid down.

16.14. The proposals regarding regularization of services of full time

contingent employees and part time contingent employees is not within the
purview of PRC and only Government can take a decision.

16.15. Government have been enhancing the remuneration for full time
contingent employees and part time contingent employees from time to time.

16.16. Sanction of increments does not arise unless the services of the
person is regularized in a sanctioned post.

16.17. The Commission gathered information from the Director of

Treasuries and Accounts Department and we understand that 1433 full time
contingent employees are presently drawing a minimum remuneration of
Rs.3850/- p.m. along with admissible allowances i.e., DA, HRA and CCA.

16.18. The Commission recommends a remuneration of Rs.6700/-

p.m., and HRA, DA and CCA to the full time contingent employees
whose services were not regularized and already drawing a remuneration
of Rs.3850/- p.m. on par with Last Grade Employee with admissible
HRA, D.A and CCA as applicable.
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CHAPTER-XVII
Pensionary Benefits

17.01. The terms of reference of the Commission require it to examine

the existing pension structure and to make recommendations on changes if
any, which are desirable and feasible. The views and suggestions of the
employees’ associations and pensioners’ associations were sought for by this
Commission. Number of associations of pensioners and the associations of
the serving employees also furnished their views and put forth several
demands before the Commission. Even some individuals have also
approached this Commission making various suggestions. The demands are
mainly based on the recommendations of the Sixth Central Pay Commission
and the orders issued by the Government of India thereon. A major demand
is to adopt the quantum of additional pension to the aged pensioners as was
ordered by the Government of India, basing on the recommendations of the
Sixth Central Pay Commission, to take into account the amount of D.A. along
with pay for the purpose of calculation of Retirement Gratuity, and to increase
the maximum ceiling of Retirement Gratuity to Rs.10 lakhs as is applicable to
the employees of the Government of India. Another major demand was to
revert to the system of service pension for those employees who joined
Government after 01-09-2004.

17.02. The State Government employees are at present governed by the

A.P. Revised Pension Rules, 1980 and also the A.P. Civil Service
(Commutation) Rules. It is generally observed that the State Government are
broadly following the rules of Government of India in the matter of pension.

17.03. However, keeping in view the existing rules and the requests
made by the associations and individuals the following recommendations are
made on each item.

1. Consolidation of Pension/ Family Pension & Dearness Relief

thereon
17.04. The amounts of pension / family pension were being
consolidated from 1-7-92 onwards adopting the same formula applicable for
refixing the pay of employees in the Revised scales of pay recommended by
the PRCs. i.e, adding D.R. and fitment percentage on par with serving
employees and arriving at the consolidated pension/consolidation Family
Pension. The associations requested for continuing the same practice of
consolidation of pension by adding D.R. as on 1-7-2008 and fitment at
varying rates from 56% to 65%.
 283

17.05. Keeping in view, the practice followed by earlier PRCs this

Commission also recommends to consolidate the pension/ family pension
from 1-7-2008 onwards applying the same formula adopted for the
refixation of pay in the case of revision of scale of pay of employees in
service, i.e. by adding the amount of Dearness Relief as on 1-7-2008
admissible on the basic pension/ family pension and 27% of the basic
pension/ family pension as fitment. The revised amount may be termed as
Revised consolidated basic pension w.e.f.1-7-2008 / Revised consolidated
basic family pension w.e.f. 1-7-2008.

17.06. After consolidating the pension / Family Pension as

recommended above, the commission further recommends to continue to
pay the Dearness Relief on such revised Consolidated Basic Pension /
Revised consolidated basic Family Pension WEF 1-7-2008 at the same
rates as are applicable to serving employees.

17.07. It is noticed by the commission that while issuing orders for the
release of increased rate of D.A. from every 1st January / 1st July of each year
to the serving employees after a delay of 4 or 5 months the Government is
ordering for crediting the arrears of D.A. to the G.P.F. and to pay in cash only
from a prospective date. In the case of pensioners also the arrears of D.R. are
ordered to be credited to the pensioners account after a lapse of 4 or 5 months.
Since the pensioners have limited access to financial resources it is
recommended that an exception may be made in the case of pensioners
and the Dearness Relief released to pensioners immediately after the
announcement is made by the Government of India about sanction of
D.A / D.R.

2. Quantum of Pension

17.08. At present the pension is calculated with reference to the length

of qualifying service, subject to a maximum of 33 years, and basing on the
average emoluments subject to the minimum pension of Rs.1925/- p.m.

The associations requested the following:

a) To allow full pension after 20 years of service instead of 33

years on par with Government of India employees.

b) For every additional year of service increase of pension by 2%

over and above the eligible pension.

c) To maintain parity in pension between old retirees and those

retired after 1-07-2003.
 284

d) The pension should not be less than 50% of the minimum of the
revised scale of pay of the post from which the employee
retired.

e) Additional pension at 10% of pension after the age of 75 years

and from 80 years onwards as per the orders of Government of
India based on the recommendations of 6th CPC.

f) Full Pension after 18 years and at 60% of last pay.

g) To pay pension at 75% of pay last drawn.

h) For existing pensioners increase the amount by 50%.

i) Fitment of 56% may be allowed.

17.09. PRC 1999 exhaustively discussed the issue of parity in pension.

He had recommended following weightages for the enhancements in the basic
pension and accordingly orders were also issued:

Periods of Retirement Weightages suggested

a) Pensioners retired prior to 1-1-1974 6%

b) Pensioners retired between

1-1-74 and 31-3-78 3%

c) Pensioners retired between

1-4-78 and 30-6-1986 2%

17.10. PRC 2005 also discussed this item and did not make any
specific recommendation on this issue. He however recommended the fixation
of minimum pension at Rs.1925 a month.

17.11. The Government of India, as a result of the recommendations of

th
the 6 CPC, allowed full pension to its employees after completion of 10
years of service and also issued orders granting additional pension for those
attaining the age of 80 years onwards as shown below:

Age of Pensioner/Family Pensioner Additional quantum of pension

From 80 years to less than 85 years 20% of revised basic pension/ Family
Pension
From 85 years to less than 90 years 30% of revised basic pension/ Family
Pension
From 90 years to less than 95 years 40% of revised basic pension/ Family
Pension
 285

Age of Pensioner/Family Pensioner Additional quantum of pension

From 95 years to less than 100 years 50% of revised basic pension/ Family
Pension
100 years or more 100% of revised basic pension/
Family Pension

17.12. The main thrust of the recommendation of the 6th Central Pay
Commission allowing 50% of the last pay drawn as pension after completion
of 20 years of service is that a Government Servant should have the option of
a mid career change without losing the benefit of pension in case he had put
in atleast 20 years of service in Government. This has to be also viewed in
the context of their recommendation that certain positions in the Government
should be thrown open to the market to encourage those who are inclined to
join Government at fairly high level positions and in order that serving
Government employees are not denied the benefit of applying for those posts
it was recommended that they could apply for such positions and if selected
they should resign from their existing positions and accept contract
appointment. In the absence of a provision for pension for past service there
would be hesitation for the serving employee to compete for those posts. It is
by no means the intent of the 6th Pay Commission to allow the benefit of full
pension to anyone who has become eligible for pension (after completion of
10 years service). The Associations, in our state, on the other hand, argued
that there is need for a more liberal dispensation for pension as the entry age
for Government Service has been enhanced and very few people become
eligible for full pension due to late entry into Government service. The
arguments advanced in the state for relaxations are, therefore, for different
reasons than the ones that prompted the 6th pay commission to allow liberal
pension dispensation for voluntary retirement. Hence the G.O.I. dispensation
is not a proper guide for the state to arrive at a decision.

17.13. The age relaxations are often offered by the Government to

make up for delay in initiating the recruitment process. If the recruitment is
held annually, as is the case with Government of India, the need for age
relaxation ceases. The Commission is of the view that it is appropriate to
induct people at an early age as they would be in a position to make
maximum contribution at that age. It is precisely for this reason that the
Private companies resort to campus selection. The tendency to avoid direct
recruitment due to economy instructions does not lead to real economy but
results in postponement of recruitment process giving rise to bunching of
recruitment with large batches competing for positions and the consequential
cadre management problems. Since the posts at certain critical levels cannot
be kept vacant the vacancies are often filled by promotion leading to litigation
at a later stage on issues relating to seniority etc. We are, therefore, of the
view that the solution to the problem lies in systematic, annual recruitment
process with no relaxations regarding age. For many of the posts in
Government in the Class-II and the lower categories, the maximum age could
 286

be reduced to 24 years with 28 years being the maximum age for Class-I
services. We believe that these limits should be strictly adhered to and this
would largely solve the problem relating to length of qualifying service for
eligibility to full pension.

17.14. The Commission feels that if the above suggestions are

implemented and the maximum age for entry into Government service is
limited to 28 years all those who entered the Government service at the age of
28 years should be able to earn full pension since they will put in 30 years of
qualifying service by the time they attain the age of superannuation i.e. 58
years and with the present weightage of 3 years they should be able to get full
pension. Further the employees due to retire in the next 5 to 10
years would have joined the Government Service during the years 1978
to 1983. The age relaxations for entry into Government Service upto
33/34 years were issued during the last 10 years on account of ban on
recruitments. Further, in spite of the age relaxations, majority of the persons
recruited would be in the age group of 25 to 28 years. We feel that any
further relaxation would remove the distinction between those who have
put in a long years of service in Government and those who had put in
barely 10 years of service if we are to follow the Government of India
dispensation regarding payment of full pension. It is obviously not the
intent of the Government to reward birds of passage by placing them on
the same plank as those who spent decades in Government service. We
also feel that those who take advantage of the age relaxation and compete for
Class-II and Class-I posts are mostly those who are already in employment at
lower level or in an organization from where they would like to migrate and it
is likely that they carry with them the benefit of past service for pension
purposes as per existing rules. As earlier stated we believe that the real answer
to the problem lies in streamlining the recruitment process and limit the age of
entry into Government service rather than relax the existing provisions
relating to qualifying service for pension.

17.15. The Commission, therefore, feels that the existing provision

of full pension after 33 years of qualifying service is quite justified and
need not be changed. We have separately recommended while dealing
with the issue of weightage that 5 years may be added to the Qualifying
Service even in the case of retirement on attaining the age of
superannuation by removing the distinction between weightage for
voluntary retirement and normal superannuation retirement.

17.16. This should be take care of cases of entry into Government

service by those upto the age of 30 years. We also feel that the suggestion
that pension should be more than 50% of the last pay drawn deserves no
consideration.
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Parity in pension between old and new retirees:

17.17. A major demand of the Association is that there are wide

disparities in the pension drawn by those who retired at different points of
time though they occupied the same position and enjoyed the same status
when they were in service and there should be equalized. Thus officers who
retired as Deputy Secretary to Government or Joint Director in a Department
in the 70s, 80s, and 90s would be drawing varying pension and sometimes the
pension drawn by them may be less than the pension of a lower level category
of officer like the Assistant Secretary/Assistant Director. This is to some
extent inevitable for two reasons. The frequent pay revisions result in
refixation of pay and it is not necessarily in the corresponding pay scale.
Often there are improvements in the pay scale, partly based on the assessment
of the present work load and improved qualifications prescribed for the posts
and partly because of the change in the nature of work. Even in cases where
only corresponding scale is awarded, the fixation benefit coupled with
substantial increase in the quantum of increment automatically brings in
variations in pension between those who retired prior to pay revision and
those who retire subsequently and at varying points of time. These are
inevitable and cannot be wished away.

17.18. If the arguments of the Association of parity between old and

new pensioners is to be accepted it would amount to introduction of the
concept of “One rank one pension” which had been rejected by successive
Pay Commissions on the ground that the cost of such revisions is beyond the
means of the Government. We also share that view. The Government of India
had addressed this problem through a process by which they ensure that the
pension is not less than 50% of the starting scale in the revised pay scale
for the post in which the pensioner retired. This is an extremely tedious
process where the pension has to be recalculated after every pay revision with
reference to the service records. An exercise done in recent years for the
limited number of All India Service pensioners is still incomplete and in a
large number of cases the State Government is unable to trace the service
registers which form the basis for refixation of pension. We feel that it is not
practical and we are also convinced that except in a few cases the revised
pension does not fall short of 50% of the “minimum” of the revised pay scale
unless there are cases where the pensioners did not have full qualifying
service. Hence we feel that instead of following the elaborate routine of
refixing pension as was attempted after the 5th and 6th Central Pay
Commissions, the pension of those who are above 75 years may be refixed
in the following manner:
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Age of the pensioners Additional quantum of pension

From 75 years to less than 80 years 15% of basic pension
From 80 years to less than 85 years 20% of basic pension
From 85 years to less than 90 years 25% of basic pension
From 90 years to less than 95 years 30% of basic pension
From 95 years to less than 100 years 35% of basic pension
100 years or more 50% of basic pension

17.19. Similarly, the Commission recommends that the same

percentages of additional quantum of pension may be allowed to the family
pensioners also.

17.20. The additional quantum of pension / family pension suggested

above may be worked out on the pension / family pension that would be
consolidated with effect from the date of introduction of Revised scales after
merging dearness relief and fitment suggested elsewhere in this report.

17.21. In the case of Pensioners who have attained the age of more
than 75 years by 1-7-2008, it is recommended that their basic pension may be
consolidated in the first instance by merging D.R. as on 1-7-2008 and adding
percentage of fitment, as recommended earlier, and then the additional
quantum of pension has to be worked out on that consolidated pension.

17.22. The amount of Additional Quantum of pension has to be shown

distinctly in the P.P.O. For example, in case where a pensioner is more than
75years of age and his/her revised consolidated basic pension / Revised
Consolidated Basic Family Pension as stated in the above recommendation on
“Consolidation of Service Pension/ Family Pension” is Rs.10,000/- p.m. the
pension will be shown as (i) Basic Pension = Rs.10,000/- p.m. and (ii)
Additional Pension = Rs.1500/-p.m. The pension on his / her attaining the age
of 80 years will be shown as (i)Basic Pension = Rs.10,000/- p.m. and (ii)
Additional Pension = Rs.2,000/- p.m.

17.23. The Additional Quantum of Pension / Family Pension, on

attaining the age of 75 years and above, would be admissible from the 1st day
of the month in which his/ her date of birth falls. For example if a pensioner /
Family Pensioner completes age of 75 years in the month of August 2008, he
will be entitled to Additional Pension/ Additional Family Pension WEF 1-8-
2008. Those pensioners / Family Pensioners whose date of birth is 1st August
will also be entitled to Additional Pension / Family Pension WEF 1-8-2008 on
attaining the age of 75 years and above.

17.24. The Dearness Relief admissible from time to time shall be

allowed on the total of basic pension and Additional Pension.
 289

17.25. We are of the firm view that the recommendation we have made
largely addresses the problems of the pensioners who retired a long time ago
and is administratively feasible to implement in short span of time.

3. Qualifying Service

17.26. The maximum qualifying service is restricted to 33 years as per

the existing rules for the purpose of computation of pension.

17.27. The associations requested the following:

(a) To take into account the entire service without restricting it to

33 years for purpose of arriving at the total qualifying service
for calculation of pension.

(b) To count the service in un-aided post also for arriving at the
qualifying service.

(c) To count the service rendered by the teachers as “Apprentice”

before allowing them the regular scale of pay.

17.28. As regards (a), the formula for determination of pension has

been evolved after considerable thought and it was accepted in Government
of India and in most State Governments that pension cannot exceed 50% of
the basic pay. If the request of the Association is conceded it would violate
the above principle. The commission is not inclined to modify the formula
already in existence.

17.29. At present the service put in by an employee in aided post only

counts for purpose of pension. The salary for the period of service in unaided
post is not being met from State funds which is one of the conditions for
eligibility for pension. Therefore, it is not correct to count the service in
unaided post also for arriving at the qualifying service. The Commission is,
therefore, not inclined to recommend to count the service in unaided post for
arriving at the qualifying service.

17.30. As regards the request for counting the period of “Apprentice”

of 2 years in respect of teachers the Commission feels that if a person is
recruited through a well defined process like calling for a list from
Employment Exchange or by conducting a D.S.C. or by constituting a
committee for selection or through A.P.P.S.C. etc, and if the appointment
order is issued by the competent authority, the date from which he/ she joined
the service should be taken into account for reckoning qualifying service.
The commission accordingly recommends the training period of Police
Constables, the apprentice period of teachers and any other section of the
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employees for whom training or apprenticeship is a pre-requisite be

reckoned as qualifying service for purposes of pension. Pending
amendment of Rule 16 of A.P.R.P.Rs 1980 the above recommendation for
counting the service for pension may be given effect to.

4. Weightage

17.31. At present the addition to service is 3 years for retirement on

superannuation and it is 5 years for voluntary retirement.

17.32. Several serving employees’ associations requested to increase

the qualifying service by adding 5 years in the case of persons retiring on
superannuation and by adding 7 years in the case of persons retiring on
voluntary retirement.

17.33. PRC 2005 did not accept the request to enhance the weightage
for voluntary retirement stating that the weightage now given is itself a
gesture on the part of the Government.

17.34. We are aware of the recommendations of the 6th Pay

Commission providing a liberal dispensation of 50% of last pay drawn as
pension for those seeking voluntary retirement after 20 years. The
Government of India, while accepting this recommendation extended the
benefit of 50% of last play drawn as pension to those who are otherwise
eligible for pension on superannuation (those who have completed 10 years of
service). We have given our reasons for not accepting this recommendation
while dealing with the issue of quantum of pension.

17.35. We do, however, feel that there is need for facilitating those
who retired on superannuation to have the benefit of higher pensionery
benefits. We, therefore, recommend that weightage for those who retired
on superannuation may be increased to 5 years on par with those seeking
voluntary retirement. This benefit would be available to those who retire
from 01-07-2008 only.

5. Average Emoluments

17.36. At present the average emoluments are worked out on the last
drawn pay provided officiation in a promoted post during last two months
preceding the retirement is in a regular vacancy (vide G.O.Ms.No.87 Fin &
Plg (Fw-Pen I) Department dated: 25-5-1998). It was clarified in
Government’s letter No.108/A2/Pen II/99dated:22-6-1999 to the effect that
the person promoted in a regular vacancy is eligible for the benefit,
irrespective of the number of days he/she worked in the promoted post.
17.37.
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The following requests were made by the associations.

(a) To allow 50% of last drawn pay or 10 months average

whichever is more as pension.

(b) Only last drawn pay has to be taken into account

(c) To delete the condition of working for 2 months in a

regular post.

(d) To calculate pension at half of the pay by withdrawing

SLP in the Supreme Court of India.

(e) To add Personal Pay, DA, Special Pay, NPPA for purpose
of emoluments.

17.38. The pension is now admissible at 50% of the last drawn pay in
the case of employees who worked in a regular vacancy of atleast a period of
two months irrespective of the number of days the employee worked in the
promoted post. The question of working out ten months average arises only in
cases where the employee faced reversion during the period of ten months
prior to the date of retirement or the vacancy is not a regular vacancy of two
months. The orders issued in 1998 are a major relaxation and we do not
propose to extend it further or enlarge the scope.

17.39. As regards, the calculation of pension at half of the pay in the

case of employees who retired prior to 25-5-1998 by extending the benefit of
50% of the last pay drawn ordered in G.O.Ms.No.87 Finance Dept. Dt: 25-5-
1998 duly withdrawing S.L.P. in the Supreme Court of India, the Commission
declines to make any recommendation as the issue is reported as pending in
Supreme Court of India.

17.40. As regards treating personal pay as emoluments for purpose of

calculation of pension, Government in G.O.Ms.No.87 Fin. & Plg. (FW-Pen I)
Department, Dt.25-05-1998, issued general orders permitting to treat Personal
pay granted to protect the emoluments to be absorbed in future increments as
emoluments. The issue for consideration is how to treat this amount in case
there is no scope for absorption as there are no future increments in the scale
or the individual retires prior to the absorption of the amount. In all cases,
where the pay is fixed beyond the maximum of the scale of pay, by treating
the amount over & above the maximum of the scale, as personal pay either
due to revision of scale or due to fixation of pay on promotion / appointment
to another post or due to allowing higher scales under Automatic
Advancement Scheme, we feel that it should be treated as personal pay to
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be reckoned as emoluments for purpose of pension. The Commission

therefore recommends issue of orders, to the above effect, to all the
departments and also to take action to amend Rule 31 of A.P.R.P.Rs 1980
suitably.

17.41. As regards, adding of D.A., Special Pay and NPPA for purpose
of arriving at the emoluments, the existing provision in the rules is that only
the basic pay has to be treated as emoluments. We see no reason to deviate
from the existing method of arriving at emoluments for arriving at pension
payable. As such the Commission recommends continuance of the existing
position of calculating pension only on the basic pay & personal pay referred
to in the above para.
6. Quantum of pension to those retiring on medical invalidation

17.42. As per the existing rules, the pension is admissible basing on the
qualifying service put in by the employee upto the date of retirement and
basing on the average emoluments.

17.43. The associations have requested to allow pension at 60% of the

last drawn pay in respect of the employees who retire on medical invalidation.

17.44. As per APRPRs 1980, pension has to be worked out in all cases
of retirements including those retired on medical invalidation, as per the
formula contained in Rule 45(2). However, as per sub-rule(7) of Rule 45, the
amount of invalid pension shall not be less than the amount of normal family
pension. This provision is similar to the provision contained in the pension
rules applicable to the employees of Government of India.

17.45. The Commission, therefore, recommends to continue the

existing provision.

7. Anticipatory Pension

17.46. As per rule 51 (A) of APRPRs 1980, anticipatory pension shall

be drawn by the Head of Office concerned irrespective of the fact whether the
pension papers have been sent to the Accountant General or not and disburse
the same to the pensioner. The amount of anticipatory pension is 4/10ths of the
last drawn pay provided the Govt. servant has put in 33 years of qualifying
service by the time of retirement. If the Govt. servant has put in less than 33
years of qualifying service, the Anticipatory Pension shall be such proportion
of 4/10ths as 33 years bears to the qualifying service put in by the Govt.
servant. As per the above rule, the anticipatory pension works out to 80% of
the service pension if the qualifying service is 33 years.
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17.47. The associations represented to recommend to pay 100% of

proposed pension as anticipatory service pension.

17.48. The Commission feels that the payment of full pension as

anticipatory pension will lead to laxity in the matter of finalization of the
pensionery benefits admissible to the Govt. employees. Further, after
verification by the A.G. A.P., if it is found that the amount of pension is less
than the amount of pension worked out by the department, there will be
difficulty in recovering the excess payment already made. The delay in
processing of pension papers and even sanctioning of Anticipatory pension
arises mostly due to inability to determine the quantum of pensionable service
rendered by the employee as in a large number of cases service verification is
not done on a regular basis. The other reason is that recovery certificates are
not received or reconciled with A.G’s accounts in respect of advances to
enable processing of papers. To overcome this problem a declaration may be
obtained from the employee about the length of service countable
towards pension and about the recovery of advances along with details
available with him based on which the anticipatory pension may be
sanctioned to the extent of 90% of the pension payable without waiting
for independent confirmation.

8. Provisional Pension

17.49. According to rule 52 of APRPRs 1980 and Circular Memo No.

979-B/5/A2/Pen-I/94 Department dated: 02-02-1994, the amount of
Provisional Pension should not be less than 75% of admissible pension.

The following requests were made by the associations.

(a) To pay balance of 25% of the provisional pension in respect of

those who died before finalization of enquiry.

(b) Instead of provisional pension, full pension may be paid while

with holding other retirement benefits.

17.50. If the pensioner died before the conclusion of disciplinary /

judicial proceedings, any pecuniary loss caused to the Government can be
recovered from the Retirement Gratuity – Vide sub rule (7) of rule 9 of the
pension rules. As regards pension, however, in the case of death of the
pensioner before conclusion of the proceedings it is not possible to establish
whether the deceased pensioner was at fault or not, since the proceedings
abate due to the death of the pensioner. However, since the pensioner died
resulting in the abatement of the proceedings, benefit of doubt may be passed
on to the pensioner in those cases. As such, the Commission recommends to
 294

pay the balance of 25% of the full pension to the family pension
beneficiary or to the legal heir in cases where the pensioner died before
the finalization of the enquiry and the further proceedings have abated.

17.51. As regards the other request, as per rule 9 of APRPRs, 1980 the
pension can be withheld either fully or partly or for a specific period. If
provisional pension is paid in full as requested by them, there would be no
scope to invoke that rule in cases where it is found that the pensioner is guilty
of the offence and that the competent authority comes to a conclusion to
either withhold the pension fully or partly or for a specific period. The
Commission, therefore, is not in favour of paying full pension as
provisional pension in cases where the departmental/ judicial proceedings
are pending against the pensioner. The existing provision of payment of
Provisional pension at 75% of the pension may be continued.

9. Quantum of Family Pension

17.52. According to rule 50 of APRPRs, 1980 the Enhanced Family

Pension is 50% of pay last drawn.

17.53. The following requests were made by the Associations.

(a) The quantum of Enhanced Family Pension may be increased

from 50% to 60% of last pay to meet the increasing financial
liabilities due to the high rates of inflation.

(b) The enhanced family pension should be 75% and normal family
pension should be 40%.

17.54. The service pension itself is subject to maximum of 50% of pay

last drawn. If Family Pension is to be considered at 75% or 60% of pay last
drawn it would be more than service pension drawn by the employee.

17.55. PRC 1979 recommended for a uniform rate of 30% of pay

towards Family Pension. PRC 1999 did not recommend the enhancement of
the percentage. PRC 2005 recommended the continuation of the existing rates
of the Family Pension.

17.56. According to the Government of India pension Rules, the

normal Family Pension is 30% of the pay last drawn and the enhanced family
pension is 50% of the pay last drawn. We feel that the present dispensation is
reasonable and the Commission recommends to continue the existing rates of
normal/ enhanced family pension and the widowed daughter is dependent on
the pensioner.
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10. Period upto which enhanced family pension is payable

17.57. As per rules, the Enhanced Family Pension at 50% of the pay
last drawn is payable to the Family Pension beneficiary for a maximum period
of either 7 years from the date following the date of death of employee/
Pensioner or till the employee / pensioner attains the age of 65 years had he
been alive, whichever is earlier.

17.58. The Government of India, basing on the report of 6th CPC,

increased the period of payment of Enhanced Family Pension from 7 years to
10 years in the case of death of the employee in service. But similar orders are
not issued in the case of death of the pensioner since it was not recommended
by 6th CPC.

17.59. It was requested that the period of payment of Enhanced Family

Pension to the eligible Family Pensioner may be increased from 7 years to 10
years.

17.60. The commission is of the considered view that the existing

scheme is liberal and requires no further modifications.

11. Family pension to whom payable

17.61. As per the existing rules, the Family pension is payable to:

(i) The spouse until her remarriage or death whichever is earlier.

(ii) The son till he attains the age of 25 years or starts earning a sum
of Rs.2440/- p.m. from all sources whichever is earlier.

(iii) Unmarried daughter till she attains the age of 25 years, or her
marriage or starts earning a sum of Rs.2440/- p.m. from all
sources whichever is earlier.

(iv) Mentally disabled/ physically crippled children for their life

time.

(v) Widowed/ divorced daughter until her remarriage or starts

earning a sum of Rs.2440/- p.m. from all sources whichever is
earlier.

The associations made the following requests.

(a) To pay life long to the divorced, widowed and unmarried

daughter.
 296

(b) Divorced daughter to be placed in first group.

(c) To remove the condition that the disability should have

manifested before the death of the Government employee in the
case of family pension payable to the disabled children.

(d) To pay enhanced family pension in the case of persons who

disappear.

(e) To pay family pension to the childless widow even after her
remarriage.

(f) To extend the benefit contained in G.O.Ms.No.523 Finance

(Pension-I) Dept. Dt: 22-6-2004 and G.O.Ms.No.231 Finance
(Pension-I) Dsept. Dt: 8-8-2008 to the pensioners also.

17.62. As regards the request contained in item (a) above, it is noticed

that as per the orders issued in G.O. (P) 523 Fin (Pen-I) Department dated:
22-06-2004, in cases where the deceased employee left behind neither a
widow nor a child eligible for Family Pension, the Family Pension is
admissible to the widowed/ divorced daughter and parents if they are wholly
dependent on the deceased employee while he was alive. It is further noticed
from the orders issued in G.O.Ms.No.231 Finance (Pension-I) Dept., Dt:8-8-
2008 that there will be no age restriction in the case of divorced/ widowed
daughter for the payment of Family Pension subject to the condition that the
family pension ceases when such daughter gets remarried or starts earning. As
the Govt. has already issued orders, the Commission feels that there is no
need to make any recommendation in this regard.

17.63. As regards the request contained in item (b) above it is observed

that based on the recommendation of 6th CPC the Government of India issued
orders dividing the eligible beneficiaries of family pension into two groups as
shown below:

Category-I:

(i) Widow or widower, upto the date of death or remarriage which

ever is earlier.

(ii) Son / daughter (including widowed daughter) upto the date of

his/ her marriage / remarriage or till the date he/ she starts
earning or till the age of 25 years, which ever is the earliest.
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Category-II:

(iii) Unmarried/ widowed/ Divorced daughter, not covered by

category-I above, upto the date of marriage/ remarriage or till
the date she starts earning or upto the date of death whichever is
earliest.

(iv) Parents who were wholly dependent on the Government servant

when he/ she was alive, provided the deceased employee has
left behind neither a widow nor a child.

17.64. The categorization made by the Government of India in the

pension rules relating to Government of India employees is rational and the
Commission recommends to adopt similar categorization in the case of
payment of family pension as per A.P.R.P.Rs 1980 also.

17.65. As regards the request contained in item (c) above the retiring
Govt. employee is expected to submit his pension papers 18 months before
the date of retirement. While submitting them if there is any mentally
disabled/ physically crippled children on that date he has to indicate the same
in the pension papers and submit them. In cases where the eligible children
become mentally disabled or physically crippled after retirement of the
employee but before the death, the pensioner has to submit the same to the
A.G.A.P., through the Pension Sanctioning Authority for incorporating the
same in P.P.O. Therefore, if the disability occurs after the death of the Govt.
employee there is no possibility for including such children for the eligibility
of payment of family pension. The Commission feels that adequate
opportunities are already there in the present system. There is no need for
further relaxation.

17.66. As regards the request contained in item (d) above it is noticed

that the existing rules provide for the payment of family pension in the case of
employees/ pensioners disappeared (vide para 14 of Appendix-I to
A.P.R.P.Rs 1980). Therefore the same provisions may be continued.

17.67. As regards the request contained in item (e) above it is noticed

that basing on the recommendations of the 6th CPC the Govt. of India in their
O.M.F.No.38/37/08-P&PW (A) Dt:2-9-2008 issued orders as follows.

17.68. “The Childless widow of a deceased Govt. employee shall

continue to be paid family pension even after her remarriage
subject to the condition that the family pension shall cease once
her independent income from all other sources becomes equal
to or higher than the minimum prescribed family pension in the
central Govt. The Family pensioner in such case would be
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required to give a declaration regarding her income from other

sources to the pension disbursing authority every six months”.

17.69. In view of the orders of the Govt. of India the Commission

recommends to follow the same in the case of State Govt. employees also.

17.70. As regards the request contained in item (f) above, it is seen

from the G.O.Ms.No.523 Fin. (Pension-I) Dept. Dt: 22-6-04, that orders were
issued for the inclusion of widowed/ divorced daughters and parents who
were totally dependent on a Govt. servant while he was alive and where the
deceased employee left behind neither widow nor a child as eligible members
for the sanction of family pension which was limited upto the age of 25 years.
Again in G.O.Ms.No.231 Fin. (Pension-I) Dept. Dt: 8-8-2008, it was ordered
that the payment of family pension to the widowed/ divorced daughter shall
be without any age restriction.

17.71. In view of the above orders, the employees while submitting the
pension forms have to include divorced / widowed daughters and parents
along with spouse and children. Based on that information the AGAP will
issue authorization for the payment of Family Pension to the eligible family
member.

17.72. The pensioner’s association requested to permit the pensioners

to include cases of daughters who became widowed or divorced after the
retirement of the employee.

17.73. The question of payment of Family Pension to the widowed /

divorced daughter arises only in cases where either the spouse or sons/
daughters are not eligible for the receipt of Family Pension on account of
death / remarriage of the spouse, or sons/ daughters become ineligible due to
attaining the age of 25 years or starts earning or marriage of the daughter, as
the case may be. There may be cases where the daughters may become
widowed / divorced after the retirement of the employee also and
consequently they may become dependent on the pensioner. Therefore, in
cases where the spouse predeceases the pensioner, and the sons/daughters are
not eligible for Family Pension as per rules it is reasonable to extend the
benefit of Family Pension to such of the widowed / divorced daughter
irrespective of the fact whether they became widowed/ divorced daughters,
either before or after the retirement of Government employee, provided they
are wholly dependent on the employee / pensioner. The commission,
therefore, recommends to allow Family Pension to the widowed /
divorced daughter, irrespective whether she became widowed / divorced
daughter either before or after the retirement of employee, provided the
spouse predeceases the pensioner and sons/ daughters become ineligible
for the Family Pension.
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12. Applicability of the orders issued in G.O.Ms.No.523 Fin (Pen-I)

Dept. Dt.22-06-04 to those who became pensioners after 22-06-04.

17.74. In G.O.Ms.No.523 Fin (Pen-I) Department Dt. 22-06-04, orders

were issued to include the widowed / divorced daughters and parents who
were totally dependent on the Government Servant, while he was alive and
where the deceased employee left behind neither widow nor a child, in the
definition of ‘family’ for purposes of Family Pension under Sub-Rule 12 of
Rule 50 of A.P.R.P.Rs 1980. It was specified in the G.O. that those orders
will come into force with immediate effect i.e. from 22-06-04. Subsequently
in G.O.Ms.No.231 Fin (Pen.I) Dept. Dt. 08-08-2008 an amendment was
issued to G.O.523 to the effect that there will be no age restriction in the case
of the divorced / widowed daughter who shall be eligible for Family Pension
even after attaining the age of 25 years. It was specified in this G.O. also that
those orders will come into force with immediate effect i.e. 08-08-2008.

17.75. The A.P. State Government Retired Employees Association

represented to recommend to extend the benefit to those retired prior to 22-
06-2004 also on the ground that the widowed daughters of the pensioners
retired prior to 22-06-04 will be put to untold hardship after the death of the
Pensioner if the benefit is not extended to them.

17.76. As long as the Pensioner is alive, the widowed / divorced

daughter will be taken care of by the Pensioner. If the pensioner dies,
then the spouse of the pensioner, who will get Family Pension will take
care of such daughters. In cases where the spouse dies and if the other
children are ineligible for Family Pension, then the Family Pension is to
be paid to the divorced / widowed daughter. We recommend that, such
of the daughters who became widowed / divorced either before or after
the date of issue of the G.O. 523 i.e. 22-06-04 be made eligible for family
pension. Further, this be made applicable to all pensioners i.e. to those
who retired before or after 22-6-2004. The Commission, recommends to
issue necessary modification to the existing orders duly deleting para 6 of
G.O.Ms.No.523 Fin (Pen-I) Dept. Dt.22-06-04 and para 6 of
G.O.Ms.No.231 Fin. (Pen-I) Dept. Dt.08-08-2008 wherein the date of
effect of the two G.Os was indicated.

13. Minimum Service pension/ Family Pension

17.77. The existing minimum pension is Rs.1925/- which is 50% of the

minimum of the existing master scale i.e., Rs.3850/-.
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17.78. The associations requested as follows.

(a) It may be fixed at 50% of the minimum of the proposed master

scale.

(b) To fix the same ranging from Rs.5000 to Rs.7000 p.m.

17.79. PRC 1979 fixed the minimum pension at Rs.100/- p.m. on the
ground that 50% of the minimum of the last grade scale + relief there on
would be more than Rs.100/-. PRC 1999 suggested to adopt the yardstick
prescribed by the Government of India that minimum pension should be 50%
of the minimum salary of the lowest post. PRC 2005 recommended for
continuation of the same principle. Even in the Government of India, the
minimum pension is Rs.3500/- which is equivalent to 50% of the minimum of
the revised pay band in the pay band (Rs.5200 + Grade Pay of Rs.1800) from
1-1-2006 i.e., Rs.7000/-.

17.80. This Commission also feels that it is desirable to continue to fix

the minimum pension/ family pension at 50% of the minimum of the
proposed master scale. The proposed minimum of the Master scale is
Rs.6,700/-. The Commission, therefore, recommends that the minimum
pension/ family pension may be fixed at Rs.3350/- p.m.

14. Dearness Relief on Family Pension and D.A. on Pay

17.81. At present Dearness Relief on service pension/ Family pension

is paid at the same rates as applicable to the employees in service.

17.82. The pensioners associations have requested to allow dearness

relief on service pension as well as family pension in the case of persons who
are entitled for both the pensions and also to extend the benefit of drawl of
D.A. and D.R. on family pension in cases where the spouses or any other
family pension beneficiary is working as a Govt. employee in the same Govt.

17.83. The payment of D.A/ D.R. is to neutralize the extra expenditure

consequent on the increase of cost of living. If D.A. and D.R. is allowed to the
same person it amounts to conferring benefit in excess of the increase in cost
of living. Govt. had earlier allowed D.R. in the case of family pensioners
appointed as a regular employee on compassionate grounds. Subsequently
those orders were withdrawn by the Govt. for very valid reasons.

17.84. The Commission, therefore, is not in favour of

recommending drawal of D.A. and D.R. separately by the same employee
from State Funds.
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15. Financial Assistance

17.85. At present Financial assistance is admissible to such of the

survivors to whom either service pension or family pension is not admissible
i.e., teachers and Non Teaching Staff of Aided Educational Institutions and
Ex-District Boards who retired or died while in service prior to 01-04-1961.

17.86. The following requests were made by the associations.

(a) To extend the benefit of Family pension scheme of 1964 to

those living spouses (to be paid either from 22-09-1977 or from
the date following the date of the death of Financial Assistance
grantee).

(b) To raise it to the amount of minimum family pension and to pay

dearness relief on it.

17.87. Financial assistance was sanctioned only to such of the persons

who are not eligible for either service pension or family pension. Therefore, it
is not correct to bring the financial assistance grantee on par with the family
pensioner. The Commission, therefore, is not in favour of allowing family
pension to the financial assistance grantees.

17.88. The other request is to increase the amount of financial

assistance to the amount of minimum family pension and to pay dearness
relief on Financial Assistance. The number of financial assistance grantees is
negligible. They are also a vanishing category. The Commission feels that
the financial assistance should be revised and placed at the minimum of
family pension with no Dearness relief after 1-7-2008. This would, while
providing relief, also distinguish them from regular family pensioners.

16. Retirement Gratuity

17.89. As per the existing Rule 46 of APRPRs 1980, the formula for
calculation of Retirement Gratuity is as follows:

(a) 1/4th of the emoluments for every completed

six monthly periods of Qualifying service., or
Whichever
(b) 16 ½ times of pay last drawn or is less.

(c) Maximum of Rs. 3.50 lakhs.

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17.90. The following requests were made by the associations.

(a) To add DA also for working out the amount of Gratuity.

(b) To enhance the maximum limit of Retirement Gratuity from

Rs.3.50 lakhs to Rs.10.00 lakhs.

(c) To dispense with the choice of 16 ½ times of monthly pay.

(d) To revise it as 25 months’ pay

(e) To pay interest for delay in payment of Gratuity at 8.5% for

delay upto 1 year and at 9.5% thereafter.

17.91. As per the existing rules DA will not form part of emoluments
for calculating gratuity. At present interest is payable on the delay in the
payment of Gratuity at 4.5% per annum for the period beyond 3 months and
upto 1 year and at 5% P.A. beyond 1 year if the delay is on account of
administrative lapse or for reasons beyond the control of the concerned
employee.

17.92. The Commission finds no valid reason to change the existing

formula for calculating the amount of Retirement Gratuity and the gratuity
may be continued to be calculated at the rate of 1/4th of emoluments for every
completed six monthly periods of qualifying service or 16½ times of the
monthly emoluments whichever is less as per the existing rules only.

17.93. Basing on the recommendation of 5th Central Pay Commission,

the Government of India issued orders to Count D.A. also for determining the
amount of Retirement Gratuity. The same principle is being followed in
respect of Government of India even after the scales of pay of the employees
of Government of India were revised W.E.F. 1.1.2006 basing on the
recommendations of 6th Central Pay Commission. It is further ordered by the
Government of India, to take into account the Grade pay also in addition to
D.A. along with basic pay for purpose of calculation of Retirement Gratuity
basing on the recommendation of 6th Central Pay Commission. As such the
Commission feels that it is reasonable to allow D.A. also for arriving at the
amount of Gratuity admissible. The Commission, therefore, recommends
that the amount of D.A. admissible as on the date of retirement / on the
date of death of the employee while in service, may be treated as
“emoluments” in addition to the basic pay for purpose of arriving at the
amount of Retirement Gratuity admissible. As regards enhancing the
existing maximum amount of Retirement Gratuity, the commission
recommends to enhance the maximum amount from the existing Rs.3.50
lakhs to Rs.7.00 lakhs.
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17.94. The employee is oblized to submit the pension forms 18 months

in advance to the date of retirement. If this is done it should be possible to get
the amount of Retirement Gratuity immediately after the retirement of the
employee. Further the existing rules provide for the payment of Anticipatory
Gratuity also in cases where there are no Departmental / Judicial proceeding
pending against the employee. We have separately recommended delegation
of powers of sanction of pension to the Heads of Offices which would
expedite pension sanction benefit to almost all the employees. We also
recommended that anticipatory pension should be paid on the basis of an
affidavit by the employee about the length of the service and repayment of
loans and interest. The same authority should be delegated with the power to
sanction gratuity / anticipatory gratuity on the basis of the same affidavit.
This should ensure that the gratuity is sanctioned on the day of retirement. If
there are delays the Head of the Office should be made fully accountable. In
view of the above, the commission sees no justification to increase the rate of
interest for the delay in payment of Retirement Gratuity, as suggested by the
associations.

17. Quantum of Commutation

17.95. At present the maximum commutation permissible is 40% of the

service pension.
17.96. The associations have requested to recommend the enhancement
of commutation of pension from 40% to 60% of the pension.

17.97. PRC 1979 did not agree to increase percentage of the

commutation of pension on the ground that the reduced monthly pension after
commutation may not be sufficient to have a comfortable living for the
pensioner. PRC 1999 also did not agree for enhancement of percentage of
pension to be commuted on the same ground. PRC 2005 suggested to follow
the Govt. of India pattern as and when changed by the Govt. of India.

17.75. At present the maximum commutation permissible is 40% even

in the Govt. of India. The Commission therefore sees no reason to
recommend for increase in the commutation of pension beyond 40%.

17.78. The Govt. of India revised the commutation table w.e.f. 2-9-
2008 vide O.M.F.No.38/37/08-P&PW (A) Dated 2-9-2008 of Dept. of
Pensions and Pensioners Welfare Govt. of India. A copy of the revised
commutation table is appended. The Commission recommends to adopt the
same table in the case of State Govt. employees also. We recommend that
this table may be applied prospectively from the date of issue of orders only.
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Commutation Value for a pension of Re.1 per annum

Age Commutation Age Commutation Age next Commutati

next value next value expressed birthday on value
birthday expressed as birthday as number of expressed as
number of year’s purchase number of
year’s year’s
purchase purchase
20 9.188 41 9.075 62 8.093
21 9.187 42 9.059 63 7.982
22 9.186 43 9.040 64 7.862
23 9.185 44 9.019 65 7.731
24 9.184 45 8.996 66 7.591
25 9.183 46 8.971 67 7.431
26 9.182 47 8.943 68 7.262
27 9.180 48 8.913 69 7.083
28 9.178 49 8.881 70 6.897
29 9.176 50 8.846 71 6.703
30 9.173 51 8.808 72 6.502
31 9.169 52 8.768 73 6.296
32 9.164 53 8.724 74 6.085
33 9.159 54 8.678 75 5.872
34 9.152 55 8.627 76 5.657
35 9.145 56 8.572 77 5.443
36 9.136 57 8.512 78 5.229
37 9.126 58 8.446 79 5.018
38 9.116 59 8.371 80 4.812
39 9.103 60 8.287 81 4.611
40 9.090 61 8.194

[Basis: LIC (94-96) Ultimate Tables and 8.00% interest]

18. Restoration of commuted portion of the pension

17.79. As per the existing rules, restoration is permissible only after

completion of 15 years from the date on which the reduced pension is being
disbursed.

17.80. The following requests are made by the associations.

(a) To restore the commuted portion of pension after 12 years on

the ground that the entire amount with interest at 4.75% will be
realised in about 12 years.

(b) To restore it by installments i.e., 1/3 after every 4 years.

17.81. PRC 1999 did not agree for reducing the period of restoration
on the ground that the age of retirement in the State Government is 58 years
but not 60 years as is being followed in other states like Kerala, Orissa,
 305

Punjab and Madhya Pradesh. The Commission also did not agree for
restoration in three equated installments on the ground that the commuted
value cannot be taken as fully adjusted in 5 or 10 years. PRC 2005 suggested
to follow the principles which are followed by Government of India. In the
case of pensioners of Govt. of India, the restoration is permissible only after
15 years. The Commission, therefore, recommends to continue the
existing position and revise it as and when Government of India modifies
the period for restoration.

19. Voluntary Retirement

17.82. As per Rule 43 of A.P.R.P. Rs 1980, employees are permitted to

seek voluntary retirement after a qualifying service of 20 years (excluding the
period of E.O.L. availed on any ground other than for prosecuting higher
studies).

17.83. Several associations have requested to reduce the period from

20 years to 15 years for purpose of voluntary retirement. They have also
requested to pay 80 months basic pay to those who seek voluntary retirement
after 15 years of service but less than 20 years, in addition to other Pensionary
Benefits as recommended by 6th CPC.

17.84. PRC 1999 observed that any further reduction in the period of
service for voluntary retirement is likely to create difficulties in the retention
of trained manpower besides casting upon Government the additional liability
as was observed by the 5th Central Pay Commission in this regard.

17.85. Retirements, in general, cause vacancies and it takes a long time

for Government to fill up the vacancies. The problem gets acute if the service
specified for voluntary retirement is further reduced. Vacancies cause
disruptions which is not conducive for efficient discharge of Government
functions. We do not wish to add to it by facilitation of early retirement. We
do not, therefore, propose any change in the present provisions relating
to voluntary retirement.

17.86. As regards payment of 80 months basic pay to those seek

voluntary retirement after 15 years of service it is noticed that though sixth
Central pay commission recommended for this payment the Government of
India did not accept. This commission also is not in favour of the request.

20. Date of Retirement

17.87. As per section 3 (1) of the A.P. Public Employment (Regulation

of Age of Superannuation), Act 84 (Act No.23 of 1984 as amended in Act
No.3 of 1985) every employee belonging to other than last grade service shall
 306

retire from service on the afternoon of the last date of the month in which he
attains the age of 58 years. Similar is the provision in respect of the last grade
employees whose age of superannuation is 60 years.

17.88. The employees’ associations requested to make a

recommendation to the effect that if the date of birth of any employee
happens to be first of a month such employee may be allowed to retire on the
last day of that month.
17.89. The attainment of the age of retirement is normally reckoned
based on the date of birth. For purpose of convenience the end of the month
is taken into account for purpose of retirement in Government. If the date of
birth of any employee happens to be the first day of any calendar month he
will be completing 58/60 years on the last day of the previous month. Since
the month is taken as the basis for retirement it would amount to extending
the service for one more month if the proposal is accepted. The State
Government pattern is also in line with the practice followed in Government
of India.

17.90. In view of the above, the Commission recommends to

continue the existing provision.

21. Relief on medical invalidation / compulsory retirement

17.91. As per Article 455 of the A.P. Pension Code, an officer who has
submitted the medical certificate of incapacity for further service shall, if he is
on duty be invalidated from service from the date of relief of his duties, which
should be arranged without delay on receipt of the medical certificate.

17.92. The associations have requested that the employees who have to
be retired on medical invalidation / compulsory retirement, may be relieved
on the last day of the month and also to give them the benefit of increment if
it is due on the next day. We find no merit in this suggestion.

17.93. When the employee is not found fit for further service by the
medical authorities, he must be retired without any delay since continuing him
in service is neither fair to the employee nor is it in the interests of the
Government. The Commission therefore suggests that soon after the
receipt of medical certificate finding the employee unfit for further
service, the employee should be relieved without any delay but in any
case not beyond fifteen days from the date of receipt of medical
certificate. If the employee is on leave on the date of receipt of medical
certificate, the leave already sanctioned to him if any, has to be revised
and such person has to be retired immediately in any case not beyond
fifteen days from the date of receipt of medical certificate. The
 307

Commission, therefore, recommends to issue suitable instructions to the

authorities concerned to take action accordingly.

17.94. In the case of employees who were awarded the punishment of

compulsory retirement, the employees have to retire soon after the receipt of
orders of the punishment. However, there may be cases where the employees
might be on leave on the date of issue of the orders of punishment. In such
cases the orders of leave already granted should be cancelled and the
employee shall be deemed to have been compulsorily retired from service
from the date of issue of the orders. The Government should view any non
compliance with the procedure outlined above as a cause for inviting
disciplinary action for imposing major punishment.

22. Processing of Pension Papers

17.95. As per the existing procedure, the service book of every

employee who completed 25 years of Qualifying Service has to be sent to the
A.G. A.P. for verification of service. The employee has to submit the pension
forms 18 months in advance to the date of retirement. The Head of Office/
Head of the Department should process the papers and send them to the A.G.
A.P. 6 months before the date of retirement.

17.96. The following requests were made by the associations.

(a) To dispose of the disciplinary cases within a period of 6 months,

otherwise pay Pensionary Benefits in full and punish the
officers responsible for delay.

(b) Not to withhold pension for want of no due certificate and on

flimsy grounds.

(c) The periods of leave/ suspension have to be regularized before

retirement.

(d) To send proposals by the head of the office in all cases.

17.97. Government are issuing instructions from time to time on the

speedy settlement of pension cases. Yet there are delays.

17.98. PRC 2005 observed that the Heads of Departments have to be

made responsible for the delay in finalizing the cases, in cases where there are
no disciplinary cases pending. This Commission also reiterates the above
recommendations. In G.O.Ms.No.365 Finance (Pen-I) Dept. Dt: 11-11-2008,
orders were issued constituting a committee of officers together with the
representatives of the A.P. State Govt. Employees Association to examine and
 308

settle the problems of the pensioners. It is hoped that the Committee would
facilitate early settlement of pension cases.

17.99. There was some suggestion that the pension proposals may be
ordered to be sent to A.G. A.P. by the Head of the Office in all cases. This has
not been possible as the existing procedure stipulates that while forwarding
the pension proposals to the A.G. A.P., the pension sanctioning authority has
to sign the sanction order contained in part – II (B) of the revised pension
forms ordered in G.O.Ms.No.263 Finance & Planning (FW. PSc) Dept. Dt:
23-11-1998. Based on this sanction the A.G. A.P. will straight away issue the
P.P.O./ G.P.O., if the pension proposals are found to be in order.

17.100. As per the existing orders the Head of the office is competent to
accord sanction of pensions only in the case of all N.G.Os & Class-IV
employees and in the case of initial Gazetted category of State Services the
Regional/ Zonal Officers are competent to accord sanction of Pension. It is
noticed that in several departments the Regional/ Zonal Officers are headed
by Joint Director/ Additional Directors. It is therefore desirable to authorize
the Regional/ Zonal Officers, also to accord sanction for pension in respect all
the Gazetted officers also working under their control. The Head of the
Department may be authorized to accord sanction for Pension in respect of
Regional/ Zonal Officers only. If in any department there are no Regional/
Zonal Officers, but only District level officers, the cases of pensions of such
District level officers may be sanctioned by the Head of the Department. The
Commission recommends delegation of powers to the authorities
indicated by us to sanction pension to avoid delays in processing of
pension papers. The officers enjoying the delegated powers may process the
papers and send them directly to the authority competent to scrutinize and
authorize the pension viz., A.G. or Director of State Audit.

23. Verification/ Authorization of Pensionary Benefits

17.101. At present the A.G. A.P. is the authority competent to verify and
issue P.P.O./ G.P.O./ Commuted value of pension in respect of all employees
except in the case of Class-IV and other low paid employees. The work of
verification and issue of Pension Payment Orders in respect of class-IV
employees and other low paid employees was entrusted to the State Audit
Department in the year 1979. Similarly the work of verification and issue of
Pension Payment Orders relating to Lower Grade/ Higher Grade/ Secondary
Grade teachers in Kurnool, Krishna & Hyderabad Districts under all
managements viz. Government, Local Bodies, Municipalities, and Aided
Schools was also entrusted to the State Audit Department on an experimental
basis.
 309

17.102. Some associations requested to decentralize the work of

verification and Authorization of Pensionary Benefits and entrust it to either
State Audit Department or to create a new Department at State level / District
level.

17.103. The suggestion to create a new department at State level with

branches at district level to attend to the work of verification and
authorization of the pensionery benefits would not only lead to an additional
expenditure to the State exchequer but will also not result in simplification of
the process. If the work of verification and issue of Pension Payment Orders
relating to Lower Grade/ Higher Grade/ Secondary Grade teachers in
Kurnool, Krishna & Hyderabad Districts is found to be working well, the
Commission recommends to extend the same to all the teachers working
in all the Districts to the State Audit Department so that a majority of the
pension cases of employees can be settled at District level itself. The
Commission, therefore, recommends to continue the existing arrangements of
authorization of pensionery benefits by the A.G.A.P. in respect of those cases
which are not entrusted to State Audit Department.

24. Non - Payment of Leave Salary & Pensionary Contribution –

Settlement of Pension

17.104. As per FR 115 (a), while a Govt. servant is on Foreign Service

contributions towards the cost of his pension must be paid. FR 115(b) states
that contributions towards the cost of leave salary also must be paid.

17.105. As per the definition contained in F R 9(7) “Foreign Service”

means - service in which a Govt. servant receives his pay, with the sanction of
Govt., from any source other than the consolidated fund of the Union or the
State or of the Union Territory.

17.106. As per the standard terms and conditions of deputation on

foreign service the Foreign employer shall pay to Govt., Leave salary and
pension contributions at the rates specified – vide para 2(ix) of G.O.(p) No.10
Finance & Planning (FW-FR II) Dept. dated 22-1-1993. In view of the above
provision, if any Government employee is deputed to work in any Public
Sector Undertaking / Local body / University etc., whose salary is not
debitable to the consolidated fund of the state, Pension Contribution has to be
realized by the Govt., for the period he works in such body since the liability
for payment of pension, to such individual after his retirement rests with the
Govt. To meet that liability, pension contribution is being realized.
 310

17.107. According to Para 8 of Appendix-I to the A.P.R.P. Rs. 1980,

“Non payment of pension contribution by the borrowing

organizations, where such payment is the responsibility of the borrowing
organizations, in respect of the employees whose services were lent on
foreign service terms and conditions shall not delay the settlement of
pension claim of a retiring employee. It is for the lending department to
claim this in time.”

17.108. Inspite of the above, it is brought to the notice of this

commission that pension cases are not being settled in several cases on the
ground that pension contribution has not been paid by the borrowing
organizations. With a view to ensuring that the pension is settled early, the
commission recommends that in cases where the Government employees
are deputed to work in Public Sector Undertakings which are wholly
owned or controlled by State Government or to any State Government
company where the State Government has a major share, or to any Local
body or University or to any aided institution which is under the control
of the State Government, the contributions towards pension and leave
salary may be waived since the amount towards salaries etc., though
initially met from the funds of the institutions, it is ultimately the State
Govt. that bears the salary expenditure etc,. Even in respect of State
Government Companies where there is no grant in aid, since the
Government has a major share, it should be treated as an extension of
Government service and contribution may be waived. In respect of
deputation of officers from one grant-in-aid institution to another grant-
in-aid institution, it is suggested that leave salary and pensionary
contributions may also be waived as in the final analysis the expenditure
is met by the Govt. In cases where officers from grant-in-aid institutions
are deputed to work in Govt. or in Quasi Govt. organizations these
contributions should be waived on the same analogy.

17.109. Government issued orders waiving the payment of Leave

Salary Contribution and Pension Contribution in the case of deputation
of employees to certain institutions such as DRDA, ITDA etc. Extension
of similar concession to the category of Institutions mentioned earlier
would ensure that pension papers are not delayed on the ground of non
receipt of Pension Contribution from the borrowing institution. The
commission therefore suggests that para 2(ix) of G.O.(P) No.10 Fin & Plg.
(FW – FRII) dated 22-1-1993 may be deleted and a specific clause regarding
recovery of pension and leave salary contribution may be indicated only in
those exceptional cases where the Government feels that recovery of leave
salary and pension contribution is warranted. In all other cases it would be
presumed that such a recovery is waived.
 311

17.110. Verification regarding recovery of Pension Contribution

may be waived in respect of all pension cases presently under
consideration and also the future cases if the officers worked on
deputation in the establishments mentioned earlier above even though
their original deputation orders stipulated recovery of leave salary and
pension contribution.

25. Interest on delay in payment of pension

17.111. The associations have requested to pay interest on pension if it

is not paid on the date of retirement.

17.112. At present, there is no provision in the pension rules for the

payment of interest on pension. Even in the case of delay in payment of
Gratuity interest is payable only in cases where it is clearly established that
the payment of retirement gratuity was delayed on account of administrative
lapse or for reasons beyond the control of the Govt. servant concerned - vide
rule 46 [1-A] (iv) of A.P.R.P.Rs 1980. To establish delay in the sanction of
pension various aspects have to be considered. The Commission observed that
periodical instructions are being issued by the Govt. for expeditious
settlement of pension cases. Pension Adalat was also constituted to attend to
the grievances of pensioners. Further, Govt. issued orders in G.O.Ms.No.365
Finance (Pension-I) Dept. Dt:11-11-2008 constituting an officers committee
to go into the problems of pensioners. If follow up action is taken at different
levels there should not be any delays in the settlement of pension.

17.113. The Commission is of the view that the existing instructions

regarding expeditions disposal of pension cases are quite adequate and if
followed strictly there should not be any difficulty in payment of pension
without any delay.

17.114. The Commission, therefore, recommends to issue

instructions to the pension sanctioning authorities to strictly adhere to
the existing instructions in the matter of expeditious settlement of pension
cases.
26. Disbursement of Pension

17.115. The Treasury officers in the districts and the Pension Payment
officer in the Twin cities are the authorities competent to disburse the
pensionery benefits basing on the authorization issued by the A.G. A.P. The
pensioners have to submit Annual Verification Certificate during the months
of November/ December every year to the Pension disbursing officers.
 312

17.116. The following requests were made by the associations.

(a) Annual Verification Certificate to be obtained from the

pensioner at their houses in cases where the pensioners are aged
more than 75 years and are not able to move.

(b) Not to insist for legal heir certificate for the payment of Family
Pension after the death of the pensioner.

(c) The Pensionary Benefits of Municipal/Gram Panchayats &

library staff also to be disbursed through Treasuries.

17.117. As per the existing rules, in the case of old pensioners above the
age of 75 years and those who are ill or invalid, a team consisting of the
Treasury Officer & Mandal Revenue Officer / Revenue Inspector have to
select a central place in the town and obtain the certificate from the
pensioners. In this process the pensioner has to come to that central place. If
the pensioner can move from his residence upto a central place, he can as well
go upto the bank/ Treasury. Therefore, the existing provision will not solve
the problem of old pensioners who are ill or not able to move. In such cases
the Annual Verification Certificate may be got attested by a Gazetted Officer.
In case such Pensioners / Family Pensioners are living in rural areas, the
certificate may be got attested by the Executive Officer of the concerned
Gram Panchayat . The certifying officers, in such cases, have to personally
verify the Physical condition of the Pensioner/Family Pensioner and append a
certificate to the effect that the Pensioner/Family Pensioner is physically not
in a position to move from the bed. The Commission recommends to issue
instructions on the lines suggested above to the Pension disbursing authorities
which, in our view, would provide relief to the sick and disabled pensioners.

17.118. As regards the other request regarding dispensing with legal heir
certificate for the payment of Family Pension after the death of the pensioner
the Govt. in Circular Memo.No.743/147/PSC/2009, Dt: 29-05-2009 of the
Finance Dept. issued modified instructions to the effect that a single
application requesting for release of family pension with effect from the next
day of the date of death of the service pensioner is enough. In view of that
there would be no difficulty in the payment of family pension after the death
of the pensioner.

17.119. As regards the other request of disbursement of pensionery

benefits of Municipal/ Gram Panchayats and Library staff also through the
treasuries the Commission is not inclined to make any recommendation since
it is a policy matter of the Govt. involving State funds.
 313

27. Procedure for Claiming Family Pension after the demise of the
spouse

17.120. As per the existing provisions contained in A.P.R.P.Rs1980,

Family pension is payable to the spouse until the death or remarriage which
ever is earlier. Thereafter it is payable to the son until he attains the age of 25
years or starts earning his livelihood whichever is earlier. In the case of
daughter, it is payable until her marriage, or attaining the age of 25 years or
till she starts earning her livelihood. If the son/unmarried daughter are not
eligible then it is payable to the widowed/divorced daughter till their life or
starts earning their livelihood or remarriage whichever is earlier.

17.121. In the application form for pension, the retiring employee has to
furnish the list of family members, along with the descriptive rolls of the
pensioner and the spouse or if there is no spouse, the other eligible family
pension beneficiary. The pensioner does not furnish the descriptive rolls of
all the other family pension beneficiaries. Basing on the information
available in the list of family members & the descriptive rolls, the A.G. A.P./
DAOs of State Audit are indicating the name of the family pension
beneficiary and the amount of family pension admissible in the event of death
of the pensioner at the time of issue of authorization for the payment of
service pension.

17.122. The payment of family pension arises only after the demise of
the pensioner. Therefore, after the demise of the service pensioner, the
pension disbursing officers can straightaway start paying family pension to
the family pension beneficiary to whom authorisation was already issued by
the A.G. A.P. This is done immediately on receipt of simple application from
the family pension beneficiary duly enclosing the death certificate of the
pensioner. In cases, where such family pension beneficiary either predeceases
the pensioner or in cases when he/she becomes ineligible for family pension
either due to death or due to other conditions imposed in the rules, the family
pension is payable to the remaining family pension beneficiaries if they are
otherwise eligible as per rules. For this purpose, the authorization of A.G.
A.P./DAO State Audit is necessary authorizing the payment of Family
Pension to that beneficiary. As such, in cases where the Family Pension
Beneficiary to whom authorization was already issued by the A.G A.P./DAO
of State Audit, either predeceases the pensioner or becomes ineligible for the
Family Pension, the other eligible Family Pension Beneficiary has to submit
an application form together with the descriptive rolls, in quadruplicate, and
death certificate in case of death, to the A.G.A.P./DAO of state Audit, through
the Pension sanctioning authority, for issuing fresh authorisation to the
Pension Disbursing Officer. At present, this procedure is not incorporated in
the procedure for processing pension papers contained in Annexure I to the
A.P.R.P. Rs.1980. The clarificatory instructions issued in Circular Memo
 314

No.743/147/PSC/2009, Dt.29-05-2009 in the matter of payment of family

pension do not cover this detailed procedures.

17.123. The Commission therefore, recommends that detailed

instructions be given for the issue of fresh authorization to the Pension
Disbursing Officer to pay Family Pension to the other eligible family pension
beneficiary. This will be done in such cases where the Family Pension
Beneficiary to whom authorization has already been issued by the A.G.A.P. /
DAO of State Audit, either predeceases the pensioner or becomes ineligible
for the Family Pension. This will be applicable only in cases where there are
no other persons eligible to receive Family Pension as per rules. The other
eligible Family Pension Beneficiary has to submit an application form
together with the descriptive rolls, in quadruplicate, and death certificate in
case of death of the Pensioner/ Family Pensioner, as the case may be, to the
A.G.A.P./DAO of State Audit, through the Pension Sanctioning Authority, for
issuing fresh authorization. The Commission further recommends to get
those instructions incorporated in Annexure I to AP Revised Pension Rules
1980.

28. Communication of basic pension / Family Pension to the

Pensioners

17.124. Several Associations of Pensioners represented that the amount

of basic pension (both service pension and Family Pension) is not being
communicated to the pensioners as and when the basic pension is revised due
to revision of pension basing on the recommendations of successive PRCs. It
is noticed that while issuing orders for consolidation of Pension basing on the
recommendations of the 1999 and 2005 PRC, Govt. issued specific
instructions to the pension disbursing officers, to the effect that “at the time
of noting Revised Consolidated pension on the Pension Payment Order,
the Pension Disbursing Officer shall simultaneously calculate and note
the corresponding Revised Consolidated Normal Family Pension on the
Pension Payment Orders. Similarly, in case where Enhanced Family
Pension is being paid, the Normal Family Pension to be payable in future,
would also be consolidated and noted on the Pension Payment Orders.”
The Treasury Officers and Pension Disbursing Officer were also requested to
implement the orders of consolidation without any authorization from the
A.G. A.P.(A&E) Hyderabad. Govt. had also directed the Treasury Officers
and Pension payment Officer to communicate the amount of Revised Basic
Pension / Family Pension to the pensioners/ Family Pensioners. Inspite of
those instructions, it was brought to the notice of the commission that the
quantum of basic pension / Family pension is not being communicated to the
pensioners. Thus the pensioners are unaware of the quantum of their basic
pension from time to time.
 315

17.125. The Commission recommends the constitution of a committee

at District level to oversee whether the information relating to the
communication of the amount of basic pension, is being sent to the pensioners
/ Family pensioners as and when it is revised. The Committee may be headed
by the District Treasury Officer and a few representatives of the Pensioners
Association may be nominated as the members of the committee. So far as the
Twin Cities are concerned, the Pension Payment Officer, Hyderabad may
chair the committee with representatives of the pensioners as the members of
the Committee. Similarly, at the state level also a committee may be
constituted with the Secretary to Government in the Finance Department as
Chairman and Director of Treasuries and Accounts as the Convener and a few
representatives of the State Pensioners’ Association as members of the
committee. The State Level Committee may review the functioning of the
District level Committees periodically at least once in a quarter.

29. Allowing pension to those resigned or dismissed from service

17.126. The associations requested for allowing pension to those

resigned or dismissed from service if they have completed seven years of
qualifying service.

17.127. In view of the New Contributory Pension scheme applicable to

such of the employees who joined service on or after 1-9-2004, the question
of counting of past service on resignation/ dismissal does not arise. In the case
of employees who entered Government service prior to 1-9-2004, the existing
rules prohibit the payment of pension to the employees who have resigned or
been dismissed from service. However, if an employee resigned from the
service with the prior permission to take up another employment, under the
Govt., where service is pensionable, then the service put in by him in the
earlier post will also qualify for pension. However, in cases where an in
service employee who was covered under the earlier pension rules joins
another organization/ Department where the same rules are applicable, after
submitting technical resignation, such employees will be treated as outside the
purview of New Contributory Pension scheme and they would continue to
remain under the earlier Pension Rules (Vide G.M.No.21944/379/A2/Pen-
I/2005 Dt:26-9-2005).

17.128. As per Rule 24 of A.P.R.P.Rs 1980 dismissal or removal of

Government servant from a service or post entails forfeiture of his past
service. Further, an employee dismissed from service is debarred from any
further employment in the Government Service. Therefore, the question of
counting of qualifying service in the case of an employee who was dismissed
from service does not arise.
 316

17.129. The Commission sees no justification in allowing pension for

any person who joined prior to 1-9-2004 and who has resigned on his own
accord in view of the existing rule position stated above.

17.130. Employees are dismissed from service when grave charges are
proved. So such employees deserve no sympathy. The Commission therefore,
is not in favour of allowing pension to the employees who joined the service
prior to 1-9-2004 and who have resigned of their own accord or dismissed
from service. However, there is a provision in Rule 40 of A.P.R.P.Rs 1980,
which enables the authority competent to dismiss or remove any employee
from service, to sanction compassionate allowance if the case deserves special
consideration. We have no doubt that the competent authority would continue
to exercise discretion in determining whether the dismissed or removed
employee could be sanctioned compassionate allowance.

30. New pension scheme from 1-9-2004

17.131. The Government introduced new contributory pension scheme

in respect of the employees who joined the service on or after 1-9-04. This is
based on the introduction of similar scheme by the Government of India in
respect of its employees who joined the service on or after 1-1-04.

17.132. The following requests are made by the associations with regard
to the contributory pension scheme applicable to the employees who joined
the Govt. service on or after 1-9-2004.

(a) To review the new scheme

(b) The Employees’ contribution should be 5% while the
Governments’ Contribution should be 10%.
(c) To allow G.P.F. in addition to this scheme.
(d) To scrap this and to allow old pension scheme.
(e) Operation of the fund should be under the direct control and
superintendence of the State Government.

17.133. PRC 2005 has expressed his inability to make any comments
since it is a policy matter of the Government. Even in Government of India,
the employees who joined on or after 1-1-2004 are governed by the
contributory pension scheme. Many State Governments seem to have adopted
this scheme including those that do not follow Central pay scales. The
Government of India have recently operationalised the scheme by authorizing
the interim Pension Regulator to appoint Fund Managers and the Central
Depository. The Regulator has invited the States to join in the scheme and the
State Government also agreed to join the scheme and authorized the Director
 317

of Treasuries and Accounts A.P. to enter into agreement with the New
Pension System Trust on behalf of the State Government. We are inclined to
believe that the new experiment deserves a fair trial.

31. Issue of ID cards

17.134. The pensioners associations requested for the issue of identity

cards to enable them to secure the facilities if any extended by any
organization and also to facilitate the easy identification of the pensioner by
the pension disbursing authority.

17.135. In G.O.Ms.No.555 Finance (P.S.C.) Dept. Dt: 30-4-2002, orders

were issued to issue laminated identity cards to the State Govt. retired
employees on an experimental basis initially in the districts of Kurnool, West
Godavari, and Nizamabad w.e.f. 1-6-2002. In G.O.Ms.No.134 Finance
(P.S.C.) Dept. Dt: 13-5-2009, orders were issued by the Govt. extending the
scheme of issue of laminated identity cards to the State Govt. retired
employees in the remaining districts of the State.

17.136. But it is seen from the guidelines issued for the issue of these
cards, that the cards are issued to the pensioners when the pensioner
approaches the pension disbursing officer to receive his first pension from the
pension disbursing officer i.e. Treasury Officer/ Pension Payment Officer.
The guidelines issued in the above G.O. are silent with regard to the issue of
the identity cards to the existing pensioners who retired prior to the issue of
above G.O. and are already in receipt of pension for the last several years.
The Commission, recommends the issue of laminated identity cards by
the pension disbursing officer to all the pensioners/ family pensioners
who are already receiving the pension/ family pension to facilitate not only
easy identification of the pensioner but also help in obtaining medical
facilities etc. The card may be designed carefully in such a manner that it
caters to all the requirements of the pensioner.

32. Constitution of family security fund

17.137. The associations have requested to recommend constitution of the

Family Security Fund.

17.138. The employees are eligible for pension after retirement. Family
pension is also admissible after the demise of the employee while in service
or after retirement. A scheme of compassionate appointment to the
spouse/children is also there in case the employee dies while in service or
retires on medical invalidation. There is provision for the payment of Death
Relief in the case of employees dying in service or after retirement. All the
above facilities constitute welfare measures to the family of the employee /
 318

pensioner. As such, the commission feels that there is no need to constitute

a family security fund separately.

33. New Items

17.139. The following requests are also made by the associations.

(1) To rectify the loss in pension due to the implementation of PRC

2005/OMC 2006 scales.

(2) To pay constant attendant allowance for 100% disabled

pensioners on the lines as admissible to defence personnel under
Government of India.

(3) To pay domestic help allowance of Rs.1250/- per month as

applicable to Judicial Officers as per G.O.M.S.No.108 Law
dated: 14-7-2008, and

(4) Pension structure should be evolved in accordance with master

scale.

17.140. As regards item (1) the Commission is of the view that there is
no merit in the demand. After every revision a revised pay scale is announced
by the Government and the employees are given an option to continue in the
existing scale or migrate to the new scale. Similar procedure was followed by
the Government after the submission of the report in 2005 by the
Commission. The employees associations were unhappy with the
recommendations made and demanded a modification of the scale suggested
by the PRC. This was acceded to and the One Man Commission, after an
extensive study, in consultation with the associations recommended a
modified scale which was accepted by the Government. This has lead to the
replacement of the scale recommended by the PRC by the scale recommended
by the OMC. Obviously some employees benefited from the scale
recommended by the OMC while some others have suffered a pecuniary loss
compared to what they would have received had the PRC scales been allowed
to remain unchanged. We cannot have a situation where individuals are
allowed the options to choose between PRC scale and OMC scale which
would be the case if the demand is accepted. We feel that this is a totally
unsustainable position. We also feel that the Government decision to
adhere to the principle of only one revised scale after a PRC report is
absolutely right. The question of rectification of loss suffered does not,
therefore, arise.

17.141. As regards item no.(2) above i.e. regarding constant Attendance

allowance, the facility in G.O.I. was intended to help those Defence service
 319

personnel, who are in receipt of Disability pension and the disability is 100%.
It is not intended to cover disability acquired unconnected with the service.
Hence there is no valid ground and the commission, is therefore not inclined
to recommend the same.

17.142. As regards item no.(3) above, i.e. Domestic Help allowance, the
Govt. sanctioned this domestic help allowance to the retired State Higher
Judicial Officers based on the Shetty Commission Report and on the orders of
Supreme Court of India. The State Higher Judicial Officers are eligible for
utilizing the services of Class-IV employees for domestic help while in
service, while the officers of other departments are not eligible for the same
while in service. The Shetty commission in its report says that it will not only
be embarrassing but also a pathetic scene for the retired judicial officers to
stand in long queue to pay electricity and water bills and hence recommended
for the payment of Rs.1250/- p.m. Even in the case of retired AIS Officers,
and also those officers of State Government who retired as Heads of
Departments etc., the same principle is applicable. Previously the State
Government sanctioned peon compensatory allowance to the touring Gazetted
Officers in the first instance so that they could attend to the official work of
disposal of files at home on return from tour. Subsequently, it was extended
to all Gazetted Officers. Though it was cancelled in the year 1988, it was
restored again in 1990 due to the litigations in the courts. P.R.C. 1993,
recommended to dispense with this payment on the following grounds.

(1) There are a large number of Gazetted Officers in the state.

(2) There is complete transformation of work culture due to the

improvement in the communication facilities.

(3) This little amount of Rs.200/-p.m. is not really sufficient to

engage a person exclusively to attend to the official work at
home, and

(4) Only A.P. & Tamilnadu States are following this type of
payment.

17.143. Based on that, Government discontinued this allowance.

Further, provision of Class IV employees for domestic help is a vestige of the
Colonial era and it does not deserve revival in the form of restoration of the
peon facility at house or provide monetary compensation for the officers in
lieu thereof whether serving or retired.

17.144. As regards item no.(4) above, it is not explained as to how the

pension has to be worked out on a master scale basis. There is no rationale to
be followed to fix the pension on a scale basis. In fact the pensions are now
 320

fixed on the basis of pay drawn by the employees who are allowed the scales
of pay on a master scale basis. The proposal is not clear and the Commission
sees no merit in the request.

34. General Issues

17.145. The following items of requests are also received from the
associations.

1. To pay H.R.A. to the pensioners.

2. To pay Pilgrimage allowance equal to one months pension
including dearness relief to pensioners/ family pensioners once
in a block of two years to go to any pilgrim center either within
the State or out the State but within the Country.
3. To pay festival grant of Rs.500/- once in a year.
4. To arrange for supply of essential commodities for the
pensioners at concessional rates through fair price shops.
5. To construct oldage homes to the pensioners.
6. To pay grants to the pensioners’ association.
7. To recognize the pensioners association.
8. To allow 30% concession in A.P.S.R.T.C. buses to the
pensioners.

17.146. The above requests were made to the earlier PRCs also. After
examination, the earlier PRCs observed that these issues will not come under
the purview of the Pay Revision Commissions.

17.147. This Commission feels that the above requests ultimately result
in extending all the facilities they enjoyed while in service though they are not
actually in service. The Commission, is therefore not inclined to make any
positive recommendation on the above requests.

35. Relief in the case of death of pensioners who are in receipt of

service pension

17.148. A lumpsum amount equal to one month’s pension subject to a

minimum of Rs.5000/- is payable to the nominee in the case of death of a
retired Govt. servant who is in receipt of service pension as per
G.O.Ms.No.504 Finance Dept. Dt:10-2-1976 as amended from time to time
the latest being G.O.(P).No.250 Finance (Pension) Dept. Dt:4-10-2005. This
relief was extended in the case of death of Non-Government pensioners also
 321

w.e.f. 16-8-2008 whose service pension is being charged to Consolidated

Fund of the State.

17.149. The pensioners associations have made the following requests.

1. To enhance the minimum amount from Rs.5,000/- to

Rs.10,000/-

2. To extend the relief in the case of death of the spouse of the

pensioner also; and

3. To extend the relief in the case of death of family pensioners

also.

17.150. In view of the general increase in the expenses the obsequies

charges in the case of death of employees while in service was else where
recommended to be enhanced to Rs.10000/-. Accordingly in the case of the
death of the service pensioner also the Commission recommends that the
minimum of Rs.5000/- be enhanced to Rs.10000/-.

17.151. As regards the second request i.e. payment of similar relief

in the case of death of the spouse, the Commission is in full agreement
with the request and feels that it is reasonable to allow the same death
relief since such cases will arise only where the spouse predeceases the
pensioner and the pensioner’s financial condition requires such a relief.
The Commission therefore recommends to extend the similar relief in
cases where the spouse of the pensioner predeceases the pensioner. The
intention here is to ensure that while he is alive he is able to discharge the
minimum obligation of ensuring that the obsequies of his spouse are
performed properly.

17.152. As regards the third request i.e. to extend the similar relief in the
case of death of the family pensioner also, the Commission is not inclined to
recommend to extend relief in the case of death of the Family pensioner.
 322

CHAPTER- XVIII
Declaration of posts as Gazetted

18.01. The Pay Revision Commission was given two additional Terms
of Reference vide G.O.Ms.No.483, GA(Special A) department, dt.12.10.2009.
One of them relates to the issue of making certain category of posts Gazetted.
The Government had directed the Commission to (i) evolve
principles/norms/criteria/guidelines for making any post as Gazetted (ii)
review the recommendations made by Sri N.Rangachary (Anomalies
Committee 2008) where certain posts were proposed for making Gazetted and
(iii) examine any other categories which Administrative Departments
proposed for making the post Gazetted. The issue of making posts Gazetted
was examined by two committees earlier and both happened to be the
Anomalies Committees, one appointed after 1999 Pay Revision and the other
appointed after 2005 Pay Revision.

18.02. The Anomalies Committee 2004 submitted its Report giving its
views on the proposals received from 28 Departments / Institutions. Similarly
the Anomalies Committee 2008 reviewed the requests from 14 Departments /
Organizations and made their recommendations.

18.03. The issue relating to according Gazetted status to different posts

was also discussed by 1993 Pay Commission. They pointed out that a
Gazetted Officer should act as a part of the management setup of the
Government and should normally contain only those posts where the Officers
are called upon to take important decisions. They went on to add that “to be
eligible for being conferred this status the duties and responsibilities attached
to the post should be on par with the duties and responsibilities of the senior
organized services of the State Government. Such a requirement could be
judged on the basis of the level of responsibility, jurisdiction, span of control,
whether the person is required to act as Head of large and important office,
scope of exercise of discretion and extent of contact with the public.” The
above description of what a Gazetted post should be is fairly comprehensive.

18.04. The Commission has noticed a tendency among officers to seek

Gazetted status more as a status symbol than as an opportunity to enable them
to effectively discharge their duties and translate Government policies into the
concrete actions. There is competition among the various functionaries to
acquire the status. Though initially the status was given without improvement
in salary the assignment of a higher scale by 2005 PRC for those who were
conferred Gazetted status had also generated large demand for Gazetted
status. They hope that at some stage the Government or a PRC would grant
them a better scale. The declaration of Gazetted status in one Department for
 323

a particular category of employees automatically generates demands for a

similar treatment in other departments as a whole. The classic case is that of
Superintendent where many officers have forwarded the proposals for making
the posts Gazetted as the Anomalies Committee, 2008 recommended Gazetted
status to this category in cases where the Administration supported such a
proposal.

18.05. Gazetted status is something that we inherited from the Colonial

past and is unique perhaps to this Country. They were mostly officers
appointed by the Crown. Initially Gazetted officers used to be few in number
and so important as to find a mention in the official gazette every time they
are appointed, promoted or transferred. In view of the proliferation of the
Gazetted Officers there is no mention about any of them in the Gazettes
issued by the Government now. If the original concept of making a mention
about the transfers, promotions, appointments of Gazetted Officers in the
Official gazette is to continue, we would perhaps require an exclusive
Department to deal with it and a printing press which will work over time in
issuing the Gazettes!

18.06. The 2004 Anomalies Committee ascertained the practices

obtaining in various southern states as regards Gazetted status for their
employees. In the case of Karnataka the officers are classified into four
groups from A to D based upon the salary structure and the posts in groups A
and B are treated as Gazetted while those in Groups C and D are treated as
Non-Gazetted. It is learnt that the Tamilnadu Government had completely
given up the concept of Gazetted or Non-Gazetted and they have merely
classified the employees into groups A to D based upon their salary structure.

18.07. The suggestion for abolishing the distinction between Gazetted

and Non Gazetted was made even in 2004 by the Anomalies Committee but
no action seems to have been taken in pursuance of those recommendations.
The reference to the Anomalies Committee 2008 for examining the issue of
Gazetted status has given new phillip to the demands for making posts
Gazetted. The recommendations of the Anomalies Committee 2008, most of
which have not been acted upon, have lead to a further spate of
representations before this Commission specially from the category of
Superintendents for declaring them as Gazetted.

18.08. The Commission has been charged with the responsibility of

evolving the principles and the guidelines for making a post Gazetted. We
feel that the following criteria should form the basis for making an
assessment about the need or otherwise of making a post Gazetted.

1. The statutory powers vested in the post;

2. The area of jurisdiction over which the officer exercises control;
 324

3. Powers of independent decision making vested in the post;

4. The position the officer occupies in the departmental hierarchy;
5. The level at which the officer interacts with other officers in the
discharge of duties.
6. The Scale of Pay attached to the post.

18.09. As regards the statutory powers, the officer should have the
power to invoke the provisions of a statute, issue necessary notices and pass
orders on the basis of the replies received to those notices. If he is not the
authority to pass the orders, he should, at least, have the power to file the
cases in the appropriate courts or make a reference to his immediate superior
authority who, in turn, should be able to initiate action on such proposals.

18.10. In respect of jurisdiction, it would be preferable to have the

jurisdiction covering at least a Revenue Division for small departments.

18.11. So far as the independent decision making power is concerned,

he should be able to exercise discretion and arrive at conclusions and take
decisions and not merely submit papers to a higher authority seeking orders.

18.12. As regards his position in the departmental hierarchy, it should

be, at least, the third level promotion for the individual concerned. This, in
effect, means that when a person gets his third promotion in his career in the
service in which he was recruited, he would move into a Gazetted Post. The
exceptions, of course, would be those Group II Services where the
recruitment takes place at the second level in a hierarchy in which case it
could be the 2nd level promotion post.

18.13. So far as interaction with other officers is concerned, the job

should be such that he would be able to interact on an equal basis with other
Gazetted Officers at Mandal level like the MRO, Mandal Development
Officer, various Extension Officers etc.

18.14. As regards the Scale, he should be have minimum of Rs.8385 –

19125 (2005).

18.15. We believe that the above mentioned criteria could form the
basis for a judgement on whether the post deserves Gazetted Status. It is not
necessary that all the six should get reflected in the job. If, at least, three of
the six criteria are satisfied and if the department feels that the services of a
person in that post can be better utilized by conferring Gazetted status, the
proposals for making the post Gazetted should be taken up for consideration.
We would also like to add that a mere compliance with these broad
 325

parameters should not lead to a claim for conferring the Status. The further
test is whether it would add to his ability to discharge his duties more
effectively and how this post compares with those in other Departments.

18.16. One of the aspects that requires to be taken into consideration

while considering the post as Gazetted is the stipulation relating to reservation
of a certain percentage of the posts filled by direct recruitment to the local
candidates. According to A.P. Public Employment (Organization of Local
Cadre and Regulation of Direct Recruitment) order, 1975 (Presidential Order)
which was renotified in G.O.Ms.No.674, GA (SPF) Department,
dt:20/10/1975, about 70% of the non-gazetted posts, above the cadre of Junior
Assistant are reserved for locals in direct recruitment under para 8(2) of the
Presidential Order. When a post is made gazetted, they become state wide
posts and lose their original character. This will affect the interests of the local
candidates. The Government reviewed the position and in order to maintain
reservation in direct recruitment for locals administrative orders were issued
to preserve the local character of these posts even if some of the posts which
were Non-Gazetted are made Gazetted subsequent to the Presidential order of
1975. It is not clear whether such an administrative order would be sufficient
or any further notification is required to be issued. It would be better to get the
legal position verified before any orders are issued making posts Gazetted.

18.17. As earlier indicated the administrative system is based on the

requirements of an earlier era and there is need for replacing the existing
management system by a new managerial order. The trend appears to be to
move away from the concept of Gazetted status for employees and organize
them into distinct cadres based upon their pay structure and the tasks assigned
to them. There seems to be some merit in following this pattern as it would
remove the high profile symbol of Gazetted Status which an employee
entering Government service hopes to acquire one day in his career. Even
now each employee getting into Government service has a pre-determined
growth path charted out for him in his Department with a distinct salary
structure and an appropriate title for the post in an established hierarchy. The
officers have to look at the progression in their hierarchy rather than look at
an artificial Gazetted Status which has nothing to do with the functions
performed by them. The Commission suggests that we should move away
from the present pattern of treating employees as Gazetted or Non-
Gazetted and classify them into Senior Management Services, Junior
Management Services, Support Services and office sub-ordinate service.
If attestations etc., are required as is now being done by the Gazetted Officers,
the first two categories could be authorized to attest copies etc.

18.17. We are aware that it would take time to consider the above
suggestion. Meanwhile one has to manage with the existing structure. It is in
the context of the criteria laid down by us that we have looked at the present
 326

proposals before us and also reviewed the recommendations of the Anomalies

Committee 2008.

18.18. The Anomalies Committee, 2008 recommended that the

following posts may be made Gazetted.

1. Physical Director - Intermediate Education

Department

2. Librarian (Junior College) - Intermediate Education

Department

3. Pharmacy Supervisor - Director of Health

4. Municipal Commissioner Grade III - Municipal Administration

Department

5. Hydrologist / Research Assistant - Fisheries Department

6. Assistant Para Medical Officer - Director of Health

7. Health Educator - Director of Health

8. Superintendent - Govt. Life Insurance Dept

9. Superintendent - Information & Public

Relation Dept.

10. Superintendent - Panchayati Raj & Rural

Development Dept.

11. Superintendent - Pay & Accounts Office

12. Superintendent - Director of Works &

Accounts

18.19. We understand that in respect of first two posts viz., Physical

Director and Librarian of the Intermediate Education Department, orders have
already been issued declaring them as Gazetted. As regards Superintendents,
there are 5 posts recommended for Gazetted Status by the Committee. We
would like to deal with Superintendents as a separate category along with
proposals received by us and whatever decision is taken there would be
applicable to all the Superintendents. This leaves us with the following posts
where the committee had earlier recommended conferring of Gazetted Status.
 327

In respect of Assistant Engineer, the Committee left it open as the issue was
covered by litigation.

1. Municipal Commissioner Grade III - Municipal Administration

Dept.
2. Pharmacy Supervisor - Director of Health
3. Assistant Para Medical officer - Director of Health
4. Health Educator - Director of Health
5. Hydrologist / Research Assistant - Fisheries Department

18.20. We recommend the Gazetted status for the post of Pharmacy

Supervisor and Municipal Commissioner, Grade III as recommended by
the Anomalies Committee, 2008. In respect of Assistant Engineer, the
Committee in its Report indicated that though Chief Engineer
(Panchayat Raj) recommended Gazetted status, it did not consider it
appropriate to decide on the issue as the matter was in the High Court.
The Commission has now been informed that the decision was in favour
of Assistant Engineers. We recommend Gazetted Status to the post of
Assistant Engineer from the time they join service and our
recommendation covers all Engineering Wings.

18.21. We are not in agreement with recommendations of the

Committee with regard to the remaining three categories. The reasons for not
accepting Gazetted Status for these categories is given at Annexure I.

18.22. Annexure-II contains our recommendations in respect of

categories where fresh proposals for making the posts Gazetted were received
by us from the Administrative Departments. Annexure III contains
recommendations in cases where we received proposals from the Heads of
Department. In view of shortage of time we could not consult the
Administrative Departments. We have no doubt that our
recommendations will be further examined by the Department before taking a
view.

18.23. Annexure-IV contains a list of posts where the representations

were received directly by us and comments have not been received from the
Heads of Department. For want of information we decided not to take them
up for examination.

18.24. This leaves us with a large number of cases of Superintendents

where representations were considered by the Anomalies Committee and also
those which were received by us with or without the comments of the HoD.

18.25. Our considered view is that based on the criteria we had

enumerated for determining whether a post should be made Gazetted, this
 328

category does not qualify for Gazetted Status. The Superintendent is often a
second level promotion post for those who directly joined as Junior
Assistants. The post in itself, has a supporting role and hardly any
independent decision making powers. There is very limited interaction with
others involved in the decision making process. The Commission can,
however, understand the legitimate aspiration of a person entering
Government service as a Junior Assistant hoping to retire as a Gazetted
Officer, at least, at the fag end of his career. In the present scheme of things,
if he does not move away into an administrative line for which openings are
generally available, he would end up as a Superintendent and retire thereafter.
To avoid this problem, we would recommend that in all offices where there
are more than 5 Superintendents, the post of an Administrative Officer may
be created as a Gazetted Post, which is a promotion post for Superintendents
by upgrading one of the posts of Superintendents. This being the third level
promotion post, at least, two of the criteria we have laid down out of 6 would
be satisfied. It should also be possible for the head of the office to delegate
some powers to the Administrative Officer. This has already happened in
some of the offices where there are Administrative Officers and also Chief
Administrative Officers. We suggest that possibility of building up a
structure of Administrative Officers and Chief Administrative Officers may
be explored to see that the aspirations of this category of employees is met.

18.26. We understand that a problem has arisen in respect of some

departments where Superintendent in the District Office was made Gazetted
while in the office of the Head of the Department the post has remained Non-
Gazetted. At present both are eligible for consideration for the 1st level
Gazetted post in the executive line of posts. With the Gazetted Status
accorded to the District level Superintendent, the position changes and the
District level Superintendent can lay claim to the 2nd level Gazetted post while
the officer in HoD will be eligible for the 1st level Gazetted Post. These
issues may be handled through appropriate changes in the Rules and the
solution does not lie in extending Gazetted Status to others.

18.27. A list of cases of Superintendents where the proposals were

earlier recommended by Anomalies Committee, the list forwarded to us by
the HoDs and the cases where the proposals were received by us directly is at
Annexure V and is placed there for information. We feel that none of them
deserve Gazetted Status and this applies equally to the 5 cases where the
Anomalies Committee, 2008 had recommended Gazetted Status.
 329

18.28. The following is the list of posts which we recommend for

conferring Gazetted Status:

1. Municipal Commissioner, Grade III - Municipal Administration

Dept.
2. Pharmacy Supervisor - DME, DH & FW
3. Assistant Engineer - All Engineering Departments
4. Sub Registrar, Grade II & I - Registration Department
5. Assistant Motor Vehicle Inspector - Transport Dept.
6. Sub Inspector / RSI - Police Dept.
7. Manager, Text Book Press - Text Book Press

Annexure-I

List of cases recommended by Anomalies Committee, 2008 but not

agreed to by PRC

18.29. There are three cases other than 5 cases of Superintendents

which were recommended by Anomalies Committee, 2008 for conferring
Gazetted Status. As regards Superintendents, they are covered by our general
recommendations relating to Superintendents. Regarding the remaining three,
we have given below our reasons for not considering them fit for conferring
the Gazetted Status.
Director of Health

Assistant Para Medical Officer : Rs.6675-15500

18.30. The post is located at the Primary Health Centre and is entrusted
with the responsibility of organizing Health Education Programmes and
coordinating with Voluntary Organizations for the implementation of
National Health Programmes. The Director of Health and the Administrative
Department recommended the proposal.

18.31. The appointment to this post is by direct recruitment or by

promotion of in service candidates belonging to A.P. Medical & Public
Health Sub-Ordinate Service. The qualifications prescribed are SSLC with 6
months training for in service candidates and graduation with 6 months
training in Leprosy for direct recruitment. This is a feeder category for the
posts of Deputy Para Medical Officer / Deputy Health Education Officer
which was already made Gazetted. The Anomalies Committee, 2008
recommended conferring Gazetted status for this post on the ground that
 330

“there has been a significant change in the nature of work done by these
Officers and eradication of HIV/AIDS programme is a major task entrusted to
them.” In view of this the Committee went to the extent of stating that they
were prepared to relax their own stipulation that Gazetted status can be
considered only where there is minimum pay scale of Rs.7770-18575.

18.32. We have examined the proposal in great detail. There are a large
member of employees in Public Health and Family Welfare with the same
scale of pay and with even higher educational qualifications and larger
responsibilities who are not considered for conferment of Gazetted status. To
assume that conferment of Gazetted status to the Assistant Para Medical
Officer would result in elimination or containment of the dreaded HIV
disease is stretching the argument to suit a conclusion.

18.33. The educational qualifications, the present salary structure and

the official responsibilities entrusted to this post do not support conferment of
Gazetted status. Any special dispensation in this case would trigger requests
for similar status from a host of employees not only in Health Department but
also from various other departments.

18.34. The Commission, for reasons mentioned above, disagrees with

the conclusion of the Anomalies Committee and rejects the proposal for
conferment of Gazetted status.

Health Department
Health Educator : Rs.8385-19125

18.35. The Proposal for making the post of Health Educator Gazetted
was placed before the Anomalies Committee, 2008 which supported the
proposal. The main argument advanced by this category for Gazetted Status is
that the Health Educator is involved in organizing publicity regarding various
Public Health Programmes to bring awareness among the people, educate
them about the health risks that they face, the ways to overcome etc. In this
process they come in contact with various officers who are at the Mandal
Level and they happen to be Gazetted Officers. Since he has to deal with
senior functionaries, his effectiveness would increase if the post is made
Gazetted. The other argument advanced by the Association is that the Deputy
Health Education Officer (Leprosy) who carries the same scale of pay has
been made Gazetted.

18.36. The Commission has examined the role and functions of the
Health Educator in the context of the assignment of appropriate scale. We
came to the conclusion that the scale assigned to him in the last revision was
disproportionately high compared to his peers and we therefore moderated it.
Comparison with the officers dealing with leprosy is not correct as those
 331

working in leprosy were always given higher scales and better status to
compensate them for working in an area where many were not willing to
work.

18.37. The Commission is of the view that there is no justification for

conferring Gazetted Status to this category.

Fisheries Department

Hydrologist/Research Assistant : Rs.7770-18575

18.38. The Commissioner of Fisheries and the Department have both

supported the request for conferring Gazetted Status on these two posts. The
Anomalies Committee, 2008 recommended Gazetting of these posts on the
ground that both the Head of Department and the administrative Department
supported such a move. The Committee had not given any justification for
supporting the Department’s proposals.

18.39. The Commission has gone through the proposal. The only
argument advanced by the Department in support of their proposal is that
Fisheries Development Officer’s post was made Gazetted and since the
Hydrologist and Research Assistant are equivalent posts forming feeder
category for the post of A.D. (Fisheries) they should also be made Gazetted.
The decision to declare a post as Gazetted depends not merely on the scale of
pay or the posts falling into a group which are considered together for
promotion but on the tasks and duties to be performed by the incumbents of
the posts, the level of responsibilities they have to undertake the authorities
with whom they have to interact and the extent of public contact. Viewed in
this perspective the duties of Hydrologist/Research Assistant are confined to
the laboratory while the Fisheries Development Officers have considerable
interaction with public and other District Officers. It is obviously for this
reason that the post of Fisheries Development Officer was made Gazetted.

18.40. For the reasons mentioned above, the Commission finds no

merit in the proposal for making the posts of Hydrologist / Research Assistant
Gazetted.

Annexure-II

Posts recommended to the Commission by the Administrative

Departments for consideration by the Commission.

18.41. In this category there are 6 posts where proposals were received
from the Administrative Departments. Out of these 6 posts, we have already
dealt with three cases of Health Educator, Assistant Para Medical Officer and
 332

Pharmacy Supervisor which were examined also by the Anomalies

Committee, 2008. The Commission’s views on these posts are at Annexure I
and in the main Report. The remaining three cases are discussed below:

Registration & Stamps Department

Sub Registrar Grade I - Rs.8385-19125

Sub Registrar Grade II - Rs.7770-18755

18.42. The request from the A.P. Sub Registrar Association is for
conferring gazetted status on both posts of Sub Registrar Grade II and Grade
I. The arguments advanced in favour of making the Sub Registrar gazetted is
that the Sub Registrar is (1) an ex-officio Collector under certain sections of
the Indian Stamp Act 1899; (2) a Registrar of Chits under Chit Funds Act; (3)
a Registrar of Marriages under the Hindu and Special Marriages Act; (4) a
stamp vender of the Sub Depots; and (5) Drawing and Disbursement Officer
in the Registration Sub District. In addition, he discharges the duties of
registration of documents and issue of Encumbrance Certificates and Certified
Copies. The Sub Registrar is, thus, an independent officer vested with many
statutory functions and is discharging certain quasi judicial functions. It is
learnt that nearly 400 Offices of Registration are headed by Sub Registrars
Grade I & II.

18.43. The Association has also pointed out that their counterparts like
Sub Treasury Officers, Forest Rangers, Assistant Social Welfare Officers,
Junior Employment Officers, Assistant Labour Officers and Cooperative Sub
Registrars have already become gazetted and it is appropriate that they should
also have the benefit of gazetted status.

18.44. There is direct recruitment for the post of Sub Registrar, Grade
II in addition to direct recruitment for the Post of District Registrar. Both are
under the purview of Andhra Pradesh Public Service Commission. Sub
Registrar Grade I is a promotion post for Sub Registrar Grade II and for the
District Registrar there is both direct recruitment and promotion channel from
Sub Registrar Grade I.

18.45. The I.G., Registration and the Revenue Department have

endorsed the proposals.

18.46. It is, no doubt, true that the Sub Registrars are in-charge of
independent offices in addition to working in the Offices of the District
Registrar. They perform a number of statutory and quasi judicial functions by
virtue of the powers conferred on them by various Acts. Considering that
they are heads of Offices and there is considerable amount of interaction with
the general public and keeping in view the statutory nature of the work
 333

performed by them, the Commission recommends conferring of Gazetted

Status on Sub Registrar Grade I and Sub Registrar Grade II.

Transport Department

Assistant Motor Vehicle Inspector : Rs.8815-20300

18.47. The Assistant Motor Vehicle Inspector is a basic level

functionary positioned in the Head Office, the District Offices and even in the
Revenue Divisions besides working in check posts. The recruitment for this
post is through the A.P. Public Service Commission where the minimum
qualification is a Diploma in Automobile Engineering or Mechanical
Engineering. The Assistant Motor Vehicle Inspector is responsible for
licensing and registration, testing of vehicles and is also in charge of
enforcement of various provisions of Motor Vehicles Act. It is learnt that the
functions and duties of AMVs are concurrent with that of the M.V.I.

18.48. The Transport Commissioner and the administrative

Department have both supported the proposal.

18.49. In view of the administrative and enforcement functions

performed by the Asst. Motor Vehicle Inspector the Commission recommends
conferring of Gazetted status on this post.

18.50. As regards proposed changes relating to designation the

administrative Department may take a view.

Ayush Department

Treatment Supervisor : Rs.6195-14175

18.51. This is more of a representation from the present

incumbent than a representation from the department or from a group of
employees for conferring Gazetted status on the post. The main contention of
the petitioner is than he has been stagnating in that post for the last 30 years
and in view of the dedicated services rendered by him, he may be conferred
Gazetted status and placed in the pay scale of Rsr.9285-21550.

18.52. The post of Treatment Supervisor in Nature Cure Hospital is

filled by promotion of Supervisor in the pay scale of Rs.4825-10845 or by
direct recruitment if no suitable or eligible Supervisor is available. It appears
that there are no promotional avenues for this post.

18.53. The post is presently on par with Senior Assistant in the

common categories. The problem appears to be lack of promotion avenues for
 334

this post. The solution does not lie in upgrading the scale or conferring
Gazetted status. The Administrative Department has to find an appropriate
channel of promotion. The Officer, is however, eligible for higher scale under
SAPP-I and SAPP-II.

18.54. The Commission does not find this a suitable post worthy of
being upgraded to the Gazetted status.

Annexure-III
Proposals for Gazetted Status received from Heads of Departments
(other than Superintendent)

18.55. When the additional terms of reference were communicated to

us to examine the issue of according Gazetted Status, we addressed the Heads
of Departments for their remarks. Where representations were received, we
also referred them for their comments. The proposals covered under this
category are examined below:

Adult Education Department

1. Assistant Project Officer : Rs.7770-18575

18.56. The Director, Adult Education proposed that the post of

Assistant project Officer, Adult Education may be made Gazetted. He
pointed out that it is a Divisional level post and he coordinates the Literacy
programmes at that level. He is in charge of the Divisional Literacy Cell and
assists the RDO / Sub Collector in implementing the programmes.

18.57. The post is presently filled up by promotion of an Upper

Divisional Clerk working in the Department or Supervisors or by promotion
from the category of Deputy Inspectors of Schools. It can also be filled up by
drawing on officers from equivalent cadre from the Departments of Higher
Education, Agriculture, Animal Husbandry, Medical and Health Services etc.
The qualifications prescribed for the Supervisor which also forms the feeder
category for promotion is SSC. The posts of APO and below are covered
presently by adhoc Rules. The Director has recently sent draft Rules which
are under consideration of the Government.

18.58. At the District level the Department has a Deputy Director with
a Project Officer assisting him. The present structure as also the
qualifications prescribed for the post do not warrant upgradation to a Gazetted
level. There are at present two Gazetted level officers who are available at the
District level to guide, supervise and monitor the programme.
 335

18.59. The Commission does not find any compelling reasons

warranting declaration of the post of Assistant Project Officer as Gazetted
Officer.

Commissioner of Survey and Settlements

2. Inspector of Survey & Land Records : Rs.7770-18575

18.60. The A.P. Survey Employees Association requested Gazetting of

the post of Inspector of Survey and gave the detailed justification for that
purpose. The main job of the Inspector of Survey is to check the maintenance
of survey records and keep the survey records up to date. He assists the
Assistant Director of Survey and inter acts with the senior functionaries like
the Collector, Joint Collector, R.D.Os., and M.R.Os. The Commissioner of
Survey Settlements and Land Records supported the proposal.

18.61. The Department and Associations have requested for aligning

their pay scales with those of the technical officers of the Irrigation and other
Works Departments. We have separately examained their representation and
made certain recommendations. Our enquiries in the Irrigation and Forest
Departments reveal that officers of an equivalent rank are not made Gazetted
in those Departments. We consider it appropriate that when posts with same
designations, similar qualifications with identical pay scales are available
across Departments a uniform view has to be taken.

18.62. We, therefore, feel that it is premature to consider the

representation and an interdepartmental Committee may examine the issue
and make recommendations to the Government.

Police Department

3. Sub Inspector / RSI : Rs.7200-16925

18.63. The request from the A.P. Police Officers Association is for
conferring gazetted status on the ground that other Mandal level officers like
Revenue, Education are recognized as Gazetted posts. The assumption that
the Sub-Inspector is a Mandal level officer comparable to other Officers at the
same level is not correct. There are Police Stations at the Mandal level which
are headed by Circle Inspectors. It is obviously not the case of the Association
that the Sub-Inspector is at par with Circle Inspector as both are heads of
Police Stations at Mandal level. The Commission, therefore, does not
consider this as a valid argument for conferring Gazetted status for this post.
At the Mandal level, there are officers carrying different pay scales with a
Gazetted Status. It does not mean that all of them are equal. This is equally
 336

true at the District level. What is common is the Gazetted Status and nothing
more.

18.64. The Director General of Police supported the proposal.

18.65. The pay scale of the Sub-Inspector is now Rs.7200-16925. The

Commission has separately recommended an improvement in the scale to
bring it on par with the Deputy Mandal Revenue Officer. We have separately
laid down the criteria that should be considered before taking a decision on
the Gazetted Status. The criteria is listed out and explained in the main
Chapter dealing with Gazetted Status. The Sub-Inspector/RSI satisfies most
of the criteria laid down by us.

18.66. The Commission, therefore, recommends conferring Gazetted

Status on the Sub-Inspector.

Text Book Press

4. Manager : Rs.7700 – 18575

18.67. The Director, Government Text Book Press informed that

Manager is Head of the District Sales office of the concerned district and is a
district level post located in each of the districts under whom other ministerial
staff such as Senior Assistant, Typist, Warehouseman and other Class-IV
employees work. The duties are to receive Nationalised Text Books, supplied
from Head Office as well as by private printers and arrange for smooth
distribution of these books to various agencies viz., Welfare departments,
Mandal Education Officers and Societies as per the Government policy laid
down on free distribution of Nationalised Text Books to the students.
Manager has also to arrange for sales and has to remit the sale proceeds to
Government account with proper maintenance of accounts. He is a member
of District Text Book Distribution Committee, the Committee constituted to
finalize Tenders for transportation of books to the mandal points and to school
points. He handles all matters such as preparation of district requirement of
Nationalised Text Books in consultation with the District Education Officers.
The Manager is also a Public Relations Officer in regard to distribution of text
books. He has to regularly contact the Director, Government Text Book
Press, Hyderabad and Special Officer (Text Books) at State level, Director of
School Education, Hyderabad, District Social Welfare Officer, Deputy
Director of Social Welfare, District Tribal Welfare Officer and District
Cooperative Officer at district level.

18.68. Appointment to the post is made by promotion from Senior

Assistant including the other posts included as such in rule 2 of the rules etc.
 337

18.69. The Director, Government Text Book Press recommended

conferring gazetted status on the post of Manager, District Government Text
Book Sales Office. The Education Department has supported the proposal
when it was considered by the Anomalies Committee, 2004.

18.70. This is an executive post involving considerable coordination

with various district officers and Gazetting of the post would definitely help
in improving coordination with other Departments with resultant
improvement in efficiency.

18.71. The Commission, therefore, recommends making the post

Gazetted.

Fisheries Department

5. Hydrologist / Research Assistant : Rs.7770-18575

18.72. This was examined as part of the recommendations made by

Anomalies Committee, 2008 and is covered in Annexure-I.

Tribal Welfare Department

6. Research Assistant
Field Officer
Technical Assistant - Rs. 7770 - 18575
Evaluation Assistant
Statistician

18.73. The Director, Tribal Cultural Research & Training Institute

suggested that the above mentioned posts may be made Gazetted.

18.74. According to the note circulated by the Director, TCR&TI,

these Officers undertake field work and assist the Officers of the Institute in
preparing the calendar of Research Projects, assist in preparation of research
design, methodology, collection of Statistics, investigations relating to tribal
status, undertake ethnographic studies etc. We do not find that any of the
above activities can be performed better if Gazetted status is conferred. Nor is
the performance impaired due to absence of Gazetted status.

18.75. The proposal to consider the above mentioned Officers for

Gazetted status is, therefore, not supported by the Commission.
 338

Town Planning Department

7. Town Planning Assistant : Rs. 8385 – 19125

8. Town Planning Officers : Rs. 9285 – 21550
(Municipalities)

18.76. The Director, Town and Country Planning has sent the proposal
for making the above two posts Gazetted. We have perused the detailed letter
sent by the Director vide his Letter No. 5547/2001/E1-4 dated 21.3.
wherein there was considerable discussion on the implications of the AD
(Town Planning) if included in specified Gazetted category under Schedule-C
of the Presidential Order which was suggested by GAD as it happens to be the
first level Gazetted Post and how it would deny promotional avenues to a
particular class or category of people in a certain region. The impression we
gather from the Note is that effort should be made to keep the AD(TP) as a
statewide post instead of bringing it into the fold of Specified Gazetted
Category to ensure regional balance. The proposal is to make the Town
Planning Assistant and Town Planning Officer the first level Gazetted posts to
ensure that AD(TP) becomes a second level Gazetted post and consequently a
State level post. This, obviously, cannot be the sole justification for making
posts Gazetted.

18.77. The Commission feels that there is no functional justification

advanced for making the post Gazetted. We are, therefore, unable to support
the proposal.

Director of Medical Education

9. Cordiology Technician Rs.6675-15500

18.78. The A.P. Medical and Health Non Gazetted Officers

Association requested that the pay of Cordiology Technician may be
enhanced and kept on par with Perfusionist and given a gazetted status. The
arguments advanced were based on the recommendation of the Anomalies
Committee 2008 which recommended an enhanced pay scale of Rs.9285-
21500 to the Cordiology Technician. But this recommendation of the
Anomalies Committee was not accepted by the Government. The criteria
outlined by us for Gazetted Status for the post are not met. The proposal for
Gazetted Status is, therefore, negatived.
 339

Forest Department

10. Head Draughtsman : Rs.8815 – 20,300

18.79. The proposal of the Association of Technical staff of Forest

Department is to reorganize the Technical Wing of the Forest Department and
create promotional opportunities on par with what is obtaining for Clerical
and Accounting Wings in the Forest Department.

18.80. As a part of this exercise what they suggested is a complete

reorganization of the set up including upgradation of posts with consequent
increase in pay and declare all Technical officers in the Scale of Rs.8815-
20,300 who completed 16 years of service as Gazetted.

18.81. This is more a reorganization of the Technical set up than a

proposal for creation of Gazetted Status based on functional responsibilities.
As indicated by us while dealing with the issue of Inspector of Survey of
Revenue Department, there are equivalent posts in other Departments with
similar hierarchy, pay scales, categorization and qualifications. An isolated
view in respect of one Department cannot be taken as it has implications for
others. The Principal CCF also indicated administrative difficulties if a large
number of posts are made Gazetted.

18.82. The Commission, for the reasons stated above suggests that the
statusquo be maintained.

Annexure – IV

Proposals for Gazetted Status from Associations and Comments

not received from Heads of Departments

Name of the Name of the Post Sought for Scale of Pay

Sl.No. Remarks
Department Gazetted Status Rs.

1 Panchayat Raj Assistant Engineer 8815-20300 Examined

Engineering Separately
Department
2 Medical Medico Social Workers 9285-21550
Education (Working Siddhartha Medical
Department College Vijayawada)
3 Commercial Assistant Commercial Tax 7770-18575
Taxes Dept. Officer
4 Institute of Food Inspector (Non- 7200-16925
Preventive Gazetted)
Medicine
 340

Name of the Name of the Post Sought for Scale of Pay

Sl.No. Remarks
Department Gazetted Status Rs.
5 Department Industrial Promotion Officers 9285-21550
of Industries (Tech.Asst.)
6 Jawahar Bal Secretary (LW) 10285-
Bhavan 24200
7 Inspector of Assistant Inspector of 7770-18575
Factories Factories
8 Municipalities Community Organizer, 7770-18575
Dy.Project Officers, 9285-21550
Project Co-ordinators (not
mentioned in 2005 schedule)
Project Officers. 10845-
25600
9 Employment Training Officer's of Govt. 7770-18575
and Training I.T.Is and DLTC
10 Medical and Deputy Statistical Officer 7770-18575
Health
Department

Annexure – V
LIST OF DEPARTMENTS WHERE SUPERINTENDENTS ARE
PROPOSED FOR GAZETTED STATUS
Sl.No. Name of the Department
I. Cases where Anomalies Committee, 2008 recommended
Gazetted Status
1 I & PR Department
2 Finance (Works and Projects)
3 Commissioner of Panchayat Raj Department (working in
Commissioner of Panchayat Raj)
4 Pay and Accounts Office
5 A.P.Govt. Life Insurance Department
II. Cases where Heads of Departments Recommended Gazetted
Status
1 Police Department
2 Social Welfare Dept.
3 Mines and Geology
4 Commissioner of Printing
 341

Sl.No. Name of the Department

5 Commissioner of Panchayat Raj Department (working in Zilla Praja
Parishads and Mandal Praja Parishads)

6 Commissioner of Survey Settlements and Land Records

7 Drugs Control Administration
8 NCC
9 Director of Protocol
10 Animal Husbandry Dept.
11 Insurance Medical Services
12 Director of Protocol
Sl.No. Name of the Department
13 Additional Industrial Tribunal, Hyderabad
14 Industrial Tribunal - I
15 Industrial Tribunal cum Presiding Officer Labour Court
Visakapatnam
16 Chairman cum Presiding Officer, Industrial Tribunal cum Labour
Court Anantapur
17 Chairman cum Presiding Officer, Karimnagar

18 Irrigation and CAD Department

19 Commissioner of Labour
20 Commissioner and Prohibition & Excise
III. Cases where remarks of Heads of Departments not received

1 Jawahar Bal Bhavan

2 Commissioner of Industries
3 Forest Department
4 Commercial Taxes Dept.
 342

CHAPTER - XIX
Non Teaching Doctors – Time Bound Promotions

19.01. One of the additional terms of reference made to this

Commission on 12.10.2009 relates to the Time Bound Promotions to Non
Teaching Doctors after completion of 8 years and 16 years.

19.02. The proposal is based on the recommendations of the Report of

the Committee constituted vide G.O.Ms.No.122, HM&FW (A-2) Dept., dated
23.4.2008 and G.O.Rt.No.576, HM&FW (A-2) Dept., dated 2.5.2008. This
Committee pointed out that in view of the limited number of vacancies of
Deputy Civil Surgeons and Civil Surgeons, there would be instances where
some of the Doctors retire as Civil Assistant Surgeons only. The Committee,
therefore, recommended two time bound promotions to the non-teaching
Doctors, first as Deputy Civil Surgeon after completion of 8 years and another
as Civil Surgeon after completion of another 8 years. This, it is stated, should
be delinked from the availability of vacancies and they should be given insitu
promotions. It is pointed out that even after the promotions the officers will
continue to do what they have been doing earlier and there would be no
change in the work entrusted to them.

19.03. The Doctors in their Memorandum to this Commission

explained in detail the meagre promotional opportunities available to them
and requested consideration of the proposals made in the Report of the
Committee of Officers. In support of their demand they cited the arrangement
in the GoI where similar facility exists and officers at the level of Medical
Officer, Senior Medical Officer and Chief Medical Officer do the same work
in the same Unit. Comparison has also been drawn with the cadre strength of
other technical Departments like Engineering, Animal Husbandry, and
Agriculture, to establish that the promotion prospects are very limited in
Health Department compared to other Departments mentioned above.

19.04. There is no denying that the problem relating to inadequate

promotional chances exists in Medical Department. Recruitment of Doctors
at the level of Civil Assistant Surgeon takes place for placement in the
Primary Health Centres and various hospitals at the Taluk and District level.
Since career progression involves not merely drawal of a higher pay but also
assumption of higher responsibilities involving supervision over subordinate
formations, the posts at the higher level can be created only when functional
justification for creation of the posts is established. This becomes extremely
difficult in areas like primary health care where the basic support at the
Mandal level is provided by the Government with concentration on preventive
aspects of medical care while the curative care has largely moved from
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Government to Private Sector. It is here that the block is created in career

progression of Doctors who remain at the Primary Health Centre referring
cases to public and private hospitals if the patients require hospitalization or
specialized treatment. The Government hospitals being limited, he continues
to discharge the same functions for a long period.

19.05. A review of the Governmental activities reveals that the position

obtaining in Medical Department is replicated in various other Departments
where direct recruitment of professionals takes place for the jobs created at
the Mandal level. The differences could be in degree but the problem is
almost universal. Cases where the recruitment takes place of professionals for
Mandal level posts cover Agricultural Officers and Veterinary Officers
besides Civil Assistant Surgeons who are posted at Primary Health Centres.
A statement was provided by the A.P. Govt. Doctors Association in the
Memorandum submitted by them which indicates the career progression of
these professionals.

19.06. The Statement shows the career progression from one level to
another level as a percentage of the cadre strength in each of these levels.
Since Doctors, Veterinarians and Agricultural Officers are all recruited after
completing their professional courses, another way of looking at the issue is
what percentage of the people recruited to the initial level post rises to various
levels in their hierarchy. We have reworked the table where we have also
indicated the pay scale of the posts to which they rise over a period of time.
We have not taken into account the Engineers as they are not stationed at the
Mandal level and there is more than one Department with Engineering
hierarchy. The results there may not be different. Incidentally in the
Statement given by the Association the Assistant Engineer’s post is shown as
a feeder category for promotion to Assistant Executive Engineer. The correct
position is that A.E. and AEE together are considered for promotion to the
post of D.E.E. These two have to be added when the promotion to DEE is
considered.

Animal Husbandry Non Teaching Doctors with

Agriculture Department
Department M.B.B.S.
Designa- Pay No. of Designa- Pay No. of Designa- Pay No. of
tion Scale posts tion Scale posts tion Scale posts
Veterinary Civil
Agriculture 9285- 9285- 11755-
2112 Asst. 1985 Asst. 6325
Officer 21550 21550 26300
Surgeon Surgeon
Asst. 10845- 512 Asst. 10845- 503 Dy. Civil 14600- 434
Director 25600 (24%) Director 25600 (25%) Surgeon 29250 (7%)
13390- 84 Dy. 13390- 55 Civil 18025- 173
Dy. Director
28500 (4%) Director 28850 (2.7%) Surgeon 30765 (2.7%)
Joint 15500- 29 Joint 15500- 25
Director 30000 (1.4%) Director 30000 (1.25%)
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Animal Husbandry Non Teaching Doctors with

Agriculture Department
Department M.B.B.S.
Designa- Pay No. of Designa- Pay No. of Designa- Pay No. of
tion Scale posts tion Scale posts tion Scale posts
Addl. 19675- 5 Addl. 18025- 3 Addl. 23500- 17
Director 30765 (0.24%) Director 30765 (0.15%) Director 30765 (0.26%)
25600- 1
Director
30765 (0.01%)
* Percentage are calculated based on the number of posts at the entry level.
Source : Annexure VII of Memorandum of A.P. Doctors' Association.

19.07. It may be seen from the above statement that there is a

semblance of progression in the case of Agricultural Officers and Veterinary
Officers at the first level promotion post while the percentage of Agricultural
Officers and Veterinary Officers who reach the level of D.D. is significantly
less than the position of their counterparts in Medical Department. Even if
they manage to reach the 2nd level promotion post, they would be reaching a
position where the scale of pay is Rs.13390 - 28500 which is less than the
Deputy Civil Surgeon’s Scale (Rs.14600 – 29250). The Civil Assistant
Surgeons not only start on a higher scale but also reach, on first promotion, a
scale which their counterparts in Agriculture and Veterinary would not get
even after two promotions.

19.08. The above analysis has been made not with a view to
underestimating the problem of Doctors but to explain that the issue is not
limited to the non teaching doctors alone. Such problems arise when large
scale recruitment takes place at the base level which is quite large and the
progression is slow due to limited vacancies at the higher levels of the
administrative hierarchy.

19.09. The issue of inadequate opportunities for promotion was

recognized by the earlier Pay Revision Commissions and, therefore, they
introduced the Scheme of Automatic Advancement Scheme. This Scheme is
applicable up to pay scale XXI which in the 2005 pay scales worked out to
Rs.10845 – 25600. As the Civil Assistant Surgeon is in XXII Pay Scale
(Rs.11755 - 26300) the category went out of the Automatic Advance Scheme
from the year 2001. The problem of poor promotion opportunity is
compounded by non-coverage under the Automatic Advancement Scheme.

19.10. As earlier explained the problem of limited access to higher

posts is spread over a large number of Departments. The Commission has
separately recommended liberalization of the Automatic Advancement
Scheme by recommending coverage upto and inclusive of Grade XXV from
the present coverage upto XXI. This addresses two problems. In the first
instance it brings in Civil Assistant Surgeons into the fold of Automatic
Advancement Scheme. Secondly in the scheme as it existed when the
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coverage is limited to Grade XXI, the officers get the benefit of the scheme at
all the three levels of Special Grade, SPP-I & SPP-II if they did not get a
promotion. If, however, they got a regular promotion and the scale in the
promotion category was more than Rs.10,845 - 25600 they automatically
went out of the scheme and had to wait for a regular promotion to get a
further improvement in the scale. If the coverage of the scheme is extended
to Grade XXV, the scheme would cover all those who have pay scales upto
and inclusive of that scale. Thus it would cover not only the Civil Assistant
Surgeons but also the Deputy Civil Surgeons as they are in Grade XXV.
Those Deputy Civil Surgeons who for want of vacancies, are unable to get
promotion will now be able to get the scale of the Civil Surgeon under the
Automatic Advancement Scheme.

19.11. The Commission, while scrutinizing the Memoranda submitted

by various Associations belonging to different services has come across a
recurring theme which is lack of promotion posts and delay in filling them up
by the Government. While part of the problem rests with the Government,
some portion of the blame has to borne by the employees who frequently
approach courts on issues of seniority resulting in delays in filling up even
limited vacancies. We believe that these issues relating to seniority have to be
sorted out and an element of finality reached without dragging it through the
entire hierarchy of the judicial system. The Government should desist from
filing appeals when the dispute is between two groups of employees taking
the side of one party unless the implementation of the court order results in a
huge drain on the exchequer.

19.12. The Commission does not favour cadre-centric solutions or

solutions to address the problems of employees of a single Department when
it is known that the problem is spread over a large number of Departments. In
our Chapter on Approach to Pay Revision we expressed our views against the
adoption of Central Scales that too in a selective fashion. The Commission is
aware that the problem of meagre promotion chances runs across most
Departments and the solution lies in arriving at a scheme that covers all
sections of the employees. If the Government accepts the
recommendations made by this Commission in the Chapter on
Automatic Advancement Scheme it would substantially address the
concerns of the non teaching medical Doctors. We believe that it benefits
the non teaching medical community and can be implemented without
any repercussions on other Departments.

19.13. The Doctors who went out of the Automatic Advancement

Scheme in 2001 would not only get back into the Scheme but would also
be entitled to the enlarged benefit with coverage of even Deputy Civil
Surgeon under the Scheme. The Commission, therefore, does not wish to
propose any scheme separately for the category of Non Teaching Doctors.
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CHAPTER – XX

General Remarks

Recording of outstanding efforts of government employees:

20.01. It has been our experience that there are no institutionalized

measures to appreciate the extra efforts put in by conscientious employees.
While the conduct rules and CCA rules take care of the irregularities
committed by an employee, there are no corresponding provisions
commending the services rendered by an employee well beyond the call of
duty. For instance according to the existing rules, employees are expected to
attend office on all working days from 10.30 a.m. to 5.00 pm with a brief
lunch break. They can also take holidays on all public holidays and are not
expected to attend office those days. But there are any number of instances
where conscientious employees render services beyond the normal working
hours including attending to work on a number of holidays. One also finds
that a number of employees do not avail of leave for years together. There are
also instances, where certain employees acquire extra knowledge or
proficiency in subjects relating to their professional work. There are many
instances where employees render valuable services during natural calamities
and outbreak of diseases etc. There are also efforts put in by employees and
officers who by diligent follow up have been responsible for protecting/
augmenting the revenues and resources of the Government and the State. It is
suggested that there should be an institutional mechanism of recognizing
outstanding performances by making suitable entries in the annual
performance reports of the officers. The Commission is aware of the fact that
it may not always be possible to financially reward such efforts. But, it is not
very difficult to record such outstanding / diligent performance by making
suitable entries in the performance appraisal of the individual. For this
purpose, the performance appraisal reports have to be suitably modified.
There is need for building an institutional mechanism for conveying
appreciation for good work.

20.02. The present system of appraisal of an officer / employee does

not leave much scope for an officer to make a comprehensive assessment of
the individual. The present reports of employees are primarily aimed at
extracting answers which are in the nature of ‘Yes’ / ‘No’ and do not admit
of a critical overall assessment of the officer / employee. One of the existing
institutions could be directed to undertake a study in this regard.

Amendment of the Service Rules in the context of Emergence of

information Technology as a major tool:
 347

20.03. It is noticed that the service rules of number of departments

have not been amended duly taking note of the increasing role of Information
Technology as a major tool. For instance, there are number of services which
are rendered by the State Government offices across the counter. The
integration of Information Technology in all these services is a major factor.
The service rules particularly those relating to the Ministerial Services have
not kept pace with the Information Technology professionals that are freely
available in the market for delivery of services across the counter.

20.04. It is hoped that for rendering better services to the citizens and
for increasing the online services for them, the existing service rules might
require change and persons with knowledge of computers would have to be
inducted into Government service at various levels in much larger numbers.
In the transition phase, this gap can be filled by outsourcing. The need for a
greater induction of the Information Technology professionals in various
Government departments has been acutely felt and it is hoped that this would
be addressed with expedition. Amendment to Rules will be the first step in
that direction.

Compassionate appointments on medical invalidation:

20.05. Government have recently issued orders in the month of

December 2008 reviving the scheme of compassionate appointment to the
dependents of Government employees who retire on medical grounds. It is to
be pointed out this gives undue advantage to those who are already part of the
system to the exclusion of large numbers who are outside and seeking
government jobs. This eliminates whatever element of competition is
available and perpetuates not only monopoly but also mediocrity. It may also
result in filling up vacancies that deserve to be abolished or replaced by
people with better qualifications. The Government of India have already
initiated steps to abolish category ‘D’ and decided that those who would be
inducted should be only skilled persons as unskilled jobs can always be easily
outsourced. Government may like to examine this aspect before the next Pay
Revision Commission is appointed. We suggest replacement of
compassionate appointment by payment of exgratia in the case of death or
medical invalidation.

Adoption of Pay Scales of Central Organisations:

20.06. It is noticed that some categories of Government employees are

assigned pay scales of University Grants Commission, AICTE, ICAR etc.,
Government have been selectively assigning these pay scales to sections of
employees/ officers. This selective adoption of pay scales of central
government Organisations is giving rise to the demand of pay parity by other
state government employees. This is particularly seen in the case of College
 348

Lecturers, including those of polytechnics, and doctors. Sections of these

categories have been given pay scales of UGC/ AICTE. It is not known
whether the conditions attached to such Pay scales are strictly enforced while
adopting them to the State employees. This has to be ensured so that those
who benefit by these Scales are those who have the requisite qualifications to
get that Scale. The state government have not so far accepted the parity of pay
scales of central employees with the state government employees. In the
absence of this, adoption of pay scales of Central Organisations / Institutions
selectively to some categories give rise to an anomalous situation.

20.07. There are some States which have adopted the central pay scales
to their own employees. Even in such States, the adoption of central pay
scales is not automatic. There is a process of equalization of state pay scales
with central pay scales duly taking note of the similarity of the working
conditions and the other benefits which are extended by the state government.
Such an equalization process is not in place in our state in the case of
adoption of UGC/ AICTE pay scales for various categories.

20.08. The Commission would like to point out that the conditions of
service of employees in Central Organisations are entirely different from the
conditions of the service of the State Government/ State Institutions. As
mentioned elsewhere in the Report, the vast resources available to
Government of India are not available to the State Government. The
Commission, therefore, suggests that we may not selectively adopt pay scales
of Central Organizations to employees of the State Government thus creating
an anomalous situation.
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CHAPTER-XXI
Financial Implications

21.01. The net additional expenditure on account of implementation of

our recommendations is Rs.1629.78 Crores as indicated below:

Sl. Particulars (Rs. in crs)

No.

A Serving Employees
(i) Pay as a result of 27% Fitment and Fixation
benefit 2384.24
(ii) House Rent Allowance 571.96
(iii) Other Allowances including City 113.81
Compensatory Allowance and Special Pay

(iv) Total - Pay and Allowances 3070.01

B Pensioners
(iv) Pension 886.70
(v) Medical Allowance to Pensioners 120.00
(vi) Total – Pension & Medical Allowance 1006.70
(vii) Total Expenditure (A+B) 4076.71
(viii) Less Interim Relief (-) 2446.93
(ix) Net Expenditure
1629.78

21.02. The figures of actuals for the year 2007-08 are taken as base
as the new scales are evolved by merging the Dearness Allowance which
existed as on 1.7.2008.

21.03. There will be 50% of additionality on other Benefits viz., on

Retirement Gratuity and Commutation on account of merger of Dearness
Allowance.