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AP PRC Report: పి.ఆర్.సి రిపోర్టు విడుదల చేసిన ప్రభుత్వం..

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AP PRC Report: ఈ రోజు జరిగిన విలేకరుల సమావేశం లో ప్రభుత్వం పి.ఆర్.సి. రిపోర్టును అంద చేసింది. ఈ నెల 7 వ తేదీ నుండి ఉద్యోగ సంఘాల ఆందోళనలు చేస్తున్న నేప

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REPORT  OF THE COMMITTEE OF SECRETARIES HEADED BY THE CHIEF SECRETARY TO THE GOVERNMENT

TO EXAMINE RECOMMENDATIONS OF THE

11TH PAY REVISION COMMISSION

AP PRC Report: ఈ రోజు జరిగిన విలేకరుల సమావేశం లో ప్రభుత్వం పి.ఆర్.సి. రిపోర్టును అంద చేసింది. ఈ నెల 7 వ తేదీ నుండి ఉద్యోగ సంఘాల ఆందోళనలు చేస్తున్న నేపథ్యం లో ప్రభుత్వం అంతర్గత చర్చలు జరిపి ఎట్టకేలకు నివేదికను విడుదల చేసింది.

ఇక్కడ క్లిక్ చేసి పి.ఆర్.సి రిపోర్టును డౌన్లోడ్ చేసుకోగలరు.

REPORT  OF THE COMMITTEE OF SECRETARIES HEADED BY THE CHIEF SECRETARY TO THE GOVERNMENT TO EXAMINE RECOMMENDATIONS OF THE 11TH PAY REVISION COMMISSION

1. The Government of Andhra Pradesh has constituted the 11th Pay Revision Commission (PRC), vide the G.O. Ms. No.75, General Administration (SC-A), dated 28-05-2018. The terms of reference (ToRs) of the 11th PRC are as mentioned hereunder.

i. To evolve the principles which may govern the structure of emoluments and the conditions of service of various categories of employees of the State Government, Local Bodies and Aided Institutions, Non-teaching staff of the Universities including Acharya N.G. Ranga Agricultural University, Jawaharlal Nehru Technological University, Work charged employees and full-time contingent employees, which have a financial bearing taking into account the total packet of benefits available to them and suggest changes therein which may be desirable and feasible;

The  Commission,  however,  shall  not  deal  with  the  teaching  staff  in

Government Colleges and Government Aided Private Colleges drawing UGC/AICTE and ICAR scales. The Commission shall also not deal with the officers of A.P. State Higher Judicial Service and A.P. State Judicial Service who are drawing Pay Scales as recommended by the First National Judicial Pay Commission.

 

 

ii. To examine as to what extent the existing DA may be merged in pay and to evolve consequent new set of pay scales merging DA therein and to suggest the mode of fixation of pay in the Revised Pay Scales.

 

 

iii. To study the Automatic Advancement Scheme as modified from time to time keeping in view the anomalies that have arisen during the implementation of the said scheme and also to examine whether the said scheme should continue in its present form and to make the recommendations in this regard.

 

 

iv.       To examine the need for various Special Pays, Compensatory and various other Allowances and other perquisites in cash or kind now allowed and to make recommendations regarding their continuance or otherwise and if continuance is recommended what modifications, if any, are deemed desirable with regard to their rates, terms and other conditions which should govern them in future.

 

 

v. To examine and review the existing pension structure for pensioners and make recommendations which may be desirable and feasible.


vi.       Review of the existing human resources of all departments in tune with the contemporary requirements including contract/outsourcing personnel particularly in the context of State bifurcation.

 

 

vii.      To give its recommendations on any other matter referred to it by the State

Government during the tenure of its office.

 

 

viii.     In  formulating  its  recommendations,  the  Commission  may  take  in  to account the overall financial position of the State.

 

 

2.  Further, vide the G.O.Rt.No.1491, General Administration (SC-A) Department, dated 03-07-2018 the Government has appointed Sri Ashutosh Mishra IAS (Retd.) as the Pay Revision Commissioner

 

3.  Subsequently, the Government, vide the G.O.Rt.No.566, General Administration (SC.A) Department, dated 17-03-2020 have entrusted additional term of reference relating to the employees of Public Transport Department to the 11th Pay Revision Commission. The Fresh Terms of Reference are as follows:

 

i. To evolve the principles which may govern the structure of emoluments and the conditions of service of various categories of employees of Public Transport Department which have a financial bearing taking into account the total packet of benefits available to them and suggest changes therein which may be desirable and feasible;

 

ii. To examine as to what extent the existing DA may be merged in pay and to evolve consequent new set of pay scales merging DA therein and to suggest the mode of fixation of pay in the Revised Pay Scales;

 

iii. To study the Automatic Advancement Scheme as modified from time to time keeping in view the anomalies that have arisen during the implementation of the said scheme and also to examine whether the said scheme should continue in its present form and to make recommendations in this regard;

 

iv.     To examine the need for various Special Pays, Compensatory and various other Allowances and other perquisites in cash or kind now allowed and to make recommendations regarding their continuance or otherwise and if continuance is recommended what modifications, if any are deemed desirable with regard to their rates, terms and other conditions which should govern them in future;

 

v. To examine and review the existing pension structure for pensioners and make recommendations which may be desirable and feasible;


vi.     In  formulating  its  recommendations,  the  Commission  may  take  into account the overall financial position of the State.

 

4.  The 11th Pay Revision Commission has submitted its report to the Government on

05-10-2020.

 

5. In the G.O.Ms.No.22, Finance (PC -TA) Department, dated 01-04-2021, the Government constituted a Committee of Secretaries to examine recommendations of the 11th PRC with the following members:

i.     Dr. Sameer Sharma, Chief Secretary

ii.     Sri Ajeya Kallam, (Retd.) Principal Advisor to CM

iii. Dr. Rajat Bhargava, Special Chief Secretary, Revenue iv.     Sri Shamsher Singh Rawat, Principal Finance Secretary

v.     Sri Shashi Bhushan Kumar, Principal Secretary (Services), GAD

vi.     Dr. K.V.V. Satyanarayana, Secretary, Finance (Budget)

 

6.  The first meeting of the Committee of Secretaries was held on 01-12-2021. The Chief Secretary welcomed all the members and briefly explained the mandate of the 11th PRC.

 

7.  The Principal Finance Secretary has explained all aspects of the 11th PRC report in detail & made a presentation on various recommendations of the report. The recommendations of 11th PRC are summarised below.

Recommendations of 11th PRC Government Employees

Pay Scale & Fitment:

 

a. Retention of  the concept of Master Scale with 32 Grades and 83 stages (increase from 81)

 

b.   Evolution of new pay scale by merging 100% of Dearness Allowance (as on 01.07.

2018)  with Basic Pay and adding a fitment benefit of 27 % on Basic Pay. c.       Formulation the Master scale with the following features:

i.      Minimum Pay .20,000/- per month.

 

ii.      Maximum Pay in the Master scale . 1,79,000/- p.m.

 

iii.      Ratio between Minimum and Maximum of the Scale 1: 8.95.

 

iv.      Annual increment to range from 3% of the pay in initial stages to 2.34%

at the end.

 

v. Periodicity of increase in increment is recommended to be 3 years up to stage 72 in the Master Scale

 

vi.      Continue grant of stagnation increments beyond time scale up to 5. vii.  The new pay scales to come into effect from 1.7.2018.

viii.  Monetary benefit implementation date left to Government


Major Allowances

 

a.  Dearness Allowance: Recommended a conversion factor of 0.91 for sanction of DA from 1.1.2019 for every 1 % increase in DA sanctioned by the Government of India

b.  House Rental Allowance: While continuing the existing classification and rates of

HRA, introduced a new class of cities with a population above 10 lakhs and increased their HRA slab from 20% to 22%.

c.   City   Compensatory   Allowance:   Recommended   two   slab   rates,   one   for

Visakhapatnam and Vijayawada and the second for the 12 other Municipal Corporations. The quantum of allowance is increased for all the pay ranges (Municipal Corporations of Visakhapatnam and Vijayawada 400-1000 and other Municipal Corporations ,300-750

 

Pensionary Benefits

 

To consolidate pension/family pension with dearness relief as on 1.7.2018. 27% of the basic pension/family pension is to be treated as fitment benefit.

A revised scale of additional quantum of pension starting from 70 years of age has been suggested.

The  maximum  amount  of  Gratuity  payable  at  the  time  of  retirement  is recommended to be enhanced from .12 lakh to .16 lakh.

Other Category of Employees

 

a.  Contract:  Recommended minimum of the time scale, in the now revised pay scale b.  Outsourcing:   Recommended new pay which is an enhancement of 30% in each

of the existing category.

c.   Home Guards:  Daily Allowance at the rate of 1/30th of the Minimum Pay (in the Revised Pay Scale recommended in this report for the Police Constables) plus Dearness Allowance thereon at the rates applicable to the Government employees from time to time.

d.  Full-time   Contingent/Daily   Wage/   Consolidated   Pay/NMR   employees:

Enhanced to 20,000+DA

 

 

APSRTC

 

a.  Pay Scale: Make the Revised Master Scale comprising of 32 Grades and 83 stages, applicable to the PTD employees also.

b.   Assignment of equivalent Government Pay Scales:  Assigning a corresponding

revised pay scale to each category of PTD employee. Assign the Special Grade Post Pay Scale and Special Promotion Post Scale I-B/ Special Adhoc Promotion Post Scale I-B (under the Automatic Advancement Scheme-AAS) corresponding to the RPS 2018 scale assigned by this Commission against the basic post held by the employee in APSRTC RPS-2017.


c. Principle of pay fixation in RPS-2018 with effect from 01-01-2020: Pay fixation of the PTD employees, who were in service prior to 01-07-2018, be done in a two- step process i.e. first by fixing the pay notionally in RPS-2018 as on 01-07-2018 and then by re-fixing the pay in RPS-2018 as on 01-01-2020.

i.  For the first step a fitment benefit of 1.6% % on the Basic Pay as on 01-07-

2018 in the APSRTC RPS-2017 be allowed.

ii.  A prescription in respect of pay fixation of employees who have joined duty in the APSRTC between 01-07-2018 and 01-01-2020.

d.  Dearness Allowance: Allow the Dearness Allowance (D.A.) with effect from 01-

01-2020 (date of absorption) at the same rate as fixed by the State Government for all its employees

e.   House Rent Allowance (HRA):  Apply the same rates of HRA, as recommended for the State government employees to the PTD employees also with effect from

01-01-2020. In addition, the PTD employees, whose work stations have been fixed at Hyderabad, Bengaluru and Chennai, to draw HRA @ 30% of Basic Pay subject to a maximum of .26,000/- per month.

f.   City Compensatory Allowance (CCA): Allow the City Compensatory allowance

to the PTD employees at the same rates of CCA as those recommended for the other State Government employees stationed in different Municipal Corporation areas.    Separates rates have also been indicated for the PTD employees head quartered in   Hyderabad, Bengaluru and Chennai Municipal Corporations.

g.   Other Allowances, Special Pay, Perquisites and Incentives The other Allowances,

Special Pay, Perquisites and Incentives etc. have been rationalised after examining the rationale for extending such benefits.

h.  Protection  of  total  emoluments  of  PTD  employees:    In case, for any PTD

employee the gross total emoluments (sum total of Pay and Allowances), as fixed on 01-01-2020 in the RPS-2018, falls short of his/her total emoluments in the existing APSRTC scale, such shortfall may be treated as Personal Pay to be absorbed in future increases in pay and allowances

i.   Pensionary Benefits: PTD employees, absorbed in Government service on 01- 01-

2020, be given an option to either continue with EPS-95 or join the CPS. The PTD employees, who opt for CPS, automatically be covered under the DCRG Scheme applicable to the other Government employees. In case, they opt to continue under EPS-95, they may get  the benefit under the APSRTC Gratuity formula as before.

 

8. The recommendations of the 11th PRC were discussed by the Committee in extensive detail.

 

9.  The Committee has also examined the aspects relating to the impact of State bifurcation on the financial position of the State ; Employee welfare measures taken by the Government such as sanction of interim relief, increase in salaries for various categories of employees, Minimum Time Scale for contract employees; absorption of APSRTC employees into State Government; Expenditure on human resources; issues  relating  to  Village/Ward  Secretariat  employees,  formation  of  Andhra


Pradesh Corporation for Outsourced Services (APCOS) for the welfare of Outsourced employees & other such measures. The members have noted that the Government incurred substantial expenditure on these measures for the welfare of employees.

 

10. The Principal Finance Secretary had also informed the Committee of Secretaries that the Finance Department has worked out the financial implications arising from the following different scenarios.

 

Scenario 1: 11th  PRC recommendations with fitment @ 23% - Rs. 11,557 crore/annum

 

Scenario 2: 11th  PRC recommendations with fitment @ 27% - Rs. 13,422 crore/annum

 

Scenario 3: 11th PRC recommendations with fitment @ 14.29%, HRA and Additional Quantum of Pension as per 7th  CPC  Rs. 9,150 crore/annum

 

Scenario 4:  11th PRC recommendations with fitment @ 23%, HRA and Additional

Quantum of Pension as per 7th CPC - Rs. 10,211 crore/annum

 

Scenario 5: 11th  PRC recommendations with fitment @ 23.5%, HRA and Additional Quantum of Pension as per 7th  CPC - Rs. 10,773 crore/annum

 

Scenario 6:  11th PRC recommendations with fitment @ 27%, HRA and Additional

Quantum of Pension as per 7th CPC - Rs. 11,413 crore/annum

 

Scenario 7:  11th PRC recommendations with fitment @ 30%, HRA and Additional

Quantum of Pension as per 7th CPC - Rs. 12,736 crore/annum

 

In addition to the above, the additional financial implication on account of implementation of 11th  PRC for PTD employees will be around Rs. 225 crore to Rs. 250 crore/annum as worked out by 11th PRC. Further, the additional financial burden due to implementation of pay scales for Village/Ward Secretariat employees will be around Rs. 1,800 crore/annum.

 

11. It was also decided in the aforesaid meeting to consult the representatives of State

Government employees so that their views can also be obtained.

 

12. The Committee of Secretaries held detailed consultations on 3-12-2021 with the representatives of the following employees’ associations:

i.     Andhra Pradesh Non-Gazetted Officer’s Association

ii.     Andhra Pradesh Secretariat Association

iii. State Teachers’ Union, Andhra Pradesh Association iv.     Andhra Pradesh Teachers’ Federation

v.     Andhra Pradesh United Teachers’ Federation vi.     Andhra Pradesh Revenue Services Association

vii.     Andhra Pradesh Government Employees Association


viii.     Andhra Pradesh Treasury Services Association

ix.     Andhra Pradesh Cooperative Service Association, Amaravati x. Andhra Pradesh Survey Employees’ Association

xi.     Andhra Pradesh Commercial Taxes Non-Gazetted Officers’ Association

xii.     Andhra Pradesh Live Stock Service Association

xiii.     Andhra Pradesh State Typists and Stenographers’ Association

 

13. In the above meeting, the associations requested for giving a fitment ranging from

40% to 60%. Certain other demands on continuation of stagnation increments, raising of minimum pay to Rs. 26,000 and maximum pay to Rs. 2,25,000, enhancement of retirement age of Group D employees to 62 years, revising the child care leave to 2 years on lines of the CPC, etc. were also put forward.

 

14. After the conclusion of the above deliberations, the Committee has summarised its observations and recommendations as hereunder.

 

 

I.  Observations on the Financial Position of the State

 

Impact of State Bifurcation

 

a)  The bifurcation of the State of Andhra Pradesh has caused structural changes in the State’s economy & led to the emerging of the successor State of Andhra Pradesh as revenue deficit compared to the erstwhile State which was revenue surplus.

 

 

b)  During the bifurcation, division of liabilities was done on population basis instead of on GSDP basis, whereas the division of assets was done on location basis.

 

c) Considering that virtually all the major assets are located in and around Hyderabad city, which has since become an integral part of Telangana State, notwithstanding it being the common capital, Andhra Pradesh has forfeited major economic assets, lost several institutions, lost revenue, lost substantial strength in service sector, lost industries, and inherited massive amount of liabilities without having the wherewithal to service them.

 

d)  Thus, the damage inflicted by the bifurcation of the State of Andhra Pradesh has had disastrous impact on economic and financial parameters of the State.

 

 

e)  Tax revenue of successor state was only 46 % of the combined State on the date of state bifurcation. The population, however, of the successor state was 58.32% From the 2020-21 RE figures, it is evident that the successor State of AP, with its agrarian economy, could mobilize only 39 % of the combined revenues of AP and Telangana. This declining share also demonstrates the negative impact of loss of Hyderabad –an economic hub.


f) Per  Capita  Income  (PCI)  is  one  of  the  most  important  macro-economic indicators which indicates the standard of living of people. It determines the purchasing power of the people which impacts on the revenue receipts of the exchequer. The PCI of the state has reached Rs.1,70,215 during 2020-21 which is lowest amongst the southern states, the highest being Telangana at Rs.2,37,632.

 

g)  Further, the increase in revenues has been lower due to agrarian nature of the state economy. The Government, is therefore having to inevitably stretch its financial resources causing an increase in deficit as well as outstanding debt, straining the fiscal position further.

 

 

h)  The State of Andhra Pradesh has further suffered financial hardships due to freezing of funds to the extent of Rs.2,232.33 crore by Telangana of certain institutions in Schedule IX and Schedule X of the APRA. Further, the state has lost access to institutions under Schedule IX with as asset value of Rs. 1.06 lakh crore and those under Schedule X with an asset value of Rs. 39,191 crore. Telangana State Power Utilities have unpaid power dues towards APGENCO. Outstanding dues as on 31.08.2021 amounts to Rs.6,284 crore.

 

 

i) Only Rs. 3,979.5 crore towards revenue deficit grant has been received against the expected revenue deficit grant of Rs. 22,948.76 cr. The balance amount of Rs. 18,969.26 crore is yet to be released by GoI.

 

j) Further,  several  provisions  of  Andhra  Pradesh  Reorganisation  Act,  2014, relating to industrial incentives, establishment of Kadapa Steel Plant, Ramayapatnam Port, etc. are yet to materialise, which has led to slow economic growth of the State.

 

 

Impact of Covid-19

 

 

a)  The strain on State finances was further compounded by the outbreak of Covid-

19 pandemic since December 2019 which has caused an additional burden of more than Rs. 20,000 crore on account of loss of anticipated revenues and additional expenditure towards Covid mitigation measures.

 

Net Impact

 

 

a)  The net impact of all the above has led to deterioration of fiscal health of the State. The State from a revenue surplus position in the combined state has become revenue deficit. The revenue deficit stood at Rs. 34,927 crore and fiscal deficit at Rs. 54,370 crore in FY 2020-21.


II.  Observations on steps taken by Government for Employee Welfare

 

 

1.   Sanction of Interim Relief

 

 

a)  The Government has already sanctioned 27% Interim Relief (IR) vide G.O.

 

Ms. No. 60 Finance (PC&TA) Dept. dated 6-7-2019, in fulfilment of the promise made by the Hon’ble Chief Minister and the request of the employees and various service associations, pending finalisation of the 11th PRC.

 

 

b)  Accordingly, the benefit of IR at 27 % of basic pay is being accorded, with effect from 1st July 2019, to all the Government Employees, including the employees of the Local Bodies (PR & ULBs), the institutions receiving Grants-in-Aid from the Government, Work Charged Employees and Full-Time Contingent Employees who are currently drawing pay in the Revised Scales, 2015.

 

 

c)  Similarly, for the welfare of pensioners, the Government vide G.O. Ms. No. 61

 

Finance (HR-3-Pension-I) dated 18-7-2019 sanctioned interim relief at the rate of 27% of basic pension w.e.f. 1st July 2019 to all Government Pensioners/ Family Pensioners including the pensioners of the Local Bodies (PR & ULBs), the institutions receiving Grants-in-Aid from the Government, Work Charged Establishment & erstwhile Full-Time contingent employees, who are currently drawing pension in the Revised Scales of Pay 2015.

 

 

d)  So far, the Government has paid Interim Relief, to a tune of Rs.11,270.21 crores for employees and Rs.4,569.78 crores for pensioners totalling to Rs.15,839.99 crores from 01-07-2019 to till date.

 

2.  Increase in Salaries of various categories of employees

 

 

a)  The Government has increased salaries of 3,01,021 employees in various categories like Anganwadi workers, Asha workers, etc. as shown in the table below. The yearly expenditure on account of salaries to these categories of employees has gone up from Rs. 1,198 crore to Rs. 3,187 crore.


Table 1: Increase in salaries of various category of employees

 

 

S.No

 

Department

 

Job

Previous

Salary

Enhanced

Salary

 

G.O.

 

Emps

 

1

 

WCD&SC

Anganwadi Workers

10,500

11,500

 

G.O.MS.No.13 Date

26-06-2019

d    47,476

Mini Anganwadi Centre

6,000

7,000

6,526

Anganwadi Helpers

6,000

7,000

45,175

 

2

 

PR&RD

Village Organization

Assistants/Sangamitras/ Animators

 

2,000

 

10,000

 

G.O.RT.NO.699

Dated: 11-11-2019

 

28,152

 

3

 

MA&UD

Sanitary workers

(15.08.2020)

 

8,000

 

18,000

 

G.O.MS.No.233

Dated: 26-08-2019

 

29,800

Supervisors

12,000

18,000

 

4

 

HM&FW

 

Asha Workers

4000 to

8500

 

10,000

G.O.MS.No.87

Dated: 07-08-2019

 

41,416

 

 

 

5

 

 

 

LET&F

MNO

6,700

17,746

 

 

 

G.O.MS.No.6

Dated:26-04-2021

2

ANM

10,020

28,000

1

 

Dhobi

 

6,700

13,000 (as per

PRC-2015)

 

2

 

Barber

 

6,700

13,000 (as per

PRC-2015)

 

2

 

6

 

Tribal welfare

Community Health

Workers

 

400

 

4,000

G.O.MS.No.117

Dated:03-12-2019

 

2,652

 

7

 

Home

Daily Duty Allowance to

Home Guards

 

600

 

710

G.O.MS.No.876

Dated:12-10-2019

 

14,984

 

8

 

School Edu

 

Cook-cum-Helpers

 

1,000

 

3,000

G.O.MS.No.61

Dated:15-09-2019

 

84,833

Total

3,01,021

 

 

 

3.  Minimum Time Scale (MTS) & other benefits for Contract Employees

 

a)  Keeping in view the welfare of the contract employees, in supersession of all the orders issued earlier, regarding the remuneration & other benefits to be paid to persons who have been appointed on contract basis, comprehensive orders were issued vide G.O. Ms. No.40, Finance (HR-I Plg. & Policy) Department, dated 18-06-2021 for payment of Minimum of Time Scale (MTS) in Revised Pay Scales 2015 to the contractual employees engaged in the Government Departments, Universities, Societies, KGVB and Model School of the relevant posts in which the employees are working.

 

b)  Further, orders were issued providing for 180 days of paid maternity leave for women married employees engaged on contractual basis in the Government Departments, Universities, Societies, KGVB and Model Schools for the first two child births.

 

c)  Orders were also issued for sanction of Ex-gratia to the contract employees i.e.

Rs.5.00 lakhs (Rupees five lakhs only) for accidental death & Rs.2.00 lakhs (Rupees two lakhs only) for natural death to legal heir of deceased Contract employees, who die in harness, while in service.

 

d)  The per annum additional benefit to the contract employees on account of these measures is approximately Rs. 360 cr per annum.


4.  Absorption of APSRTC employees into State Government.

 

 

The Government of A.P. has absorbed all APSRTC employees into Government service w.e.f., 01-01-2020 by creating a new Public Transport Department (PTD) under the administrative control of T,R&B Department. About 53,500 employees of APSRTC were absorbed into Government service. Salaries are paid to all PTD employees from January, 2020 onwards by the Government. An expenditure of Rs.5,380 crores has been incurred towards salaries of PTD employees from Jan 2020 to Oct 2021.

 

 

5.  Recruitment of Village & Ward Secretariat Employees

 

 

To take governance to the last-mile and to provide services at the doorsteps to the citizens, 1.28 lakh regular employees were recruited in the newly established Village/Ward Secretariat system in the State.

 

 

The financial implication of the above measure is Rs. 2,300 crore per annum.

 

 

6.  Fresh recruitment with special focus on Health Sector

 

 

13,677 employees in various categories like Doctors, Nurses & Other paramedical staff have been recruited in the Health Medical & Family Welfare Department to strengthen the public health care system in the State.

 

This has an estimated additional financial impact of Rs. 820 crore per annum on the State ex-chequer.

 

 

7.  Andhra Pradesh Corporation for Outsourced Services (APCOS)

 

 

i) With  an  intention  to  prevent  corruption  in  recruitment  and  to  create  a seamless, hassle-free system of payment of salaries to the outsourced employees on the 1st working day of every month, it was decided to establish a pay roll agency under the Government. Accordingly, Government formed Andhra Pradesh Corporation for Outsourced Services (APCOS) to completely do away with the private outsourcing agencies to meet the requirement of outsourced manpower vide G.O.Ms.No.126, General Administration (SU.I) Department, Dt:18.10.2019 and G.O.Ms.No.136, General Administration (SU.I) Department,  Dt:04.11.2019.

ii) 98,016 employees have benefited through APCOS. Salaries are being paid through APCOS on 1st working day of every month to the Bank Accounts of all candidates. Statutory benefits like EPF & ESI are also being paid on time.

iii)  An expenditure of Rs. 2,040 crore is being incurred per annum through

APCOS.


8.  Other Welfare Measures to the Employees

 

 

a)  Resolving of promotional channel to MPDOs

 

 

Long pending issue of finalization of seniority among Mandal Parishad Development Officers (MPDOs) of different feeder categories appointed between 1995 to 2011 has been resolved and the promotion channel has been finalized to MPDOs in the ratio of 5:3:3 for Direct Recruited MPDOs, MPDOs promoted from the feeder category of EO RD and MPDOs promoted from feeder category of Women and Child Welfare Department vide Memo No. PRR01-PEST(MPDO)/18/2021-ESST-V, PR & RD (Esst- V) Dept. dated 05-08-2021.

 

b)  Creation of promotional channel to VROs (Gr-I):

Vide G.O.Ms.No.154, Revenue (Ser.III) Department, dated 5-7-2021 orders have been issued for creation of promotional channel for the category of Village Revenue Officers (Gr-I) as Senior Assistants in supersession of the orders issued vide the G.O.Ms.No.132, Revenue (Ser.III) Department, dated

08-05-2020.

 

c)  Filling up of 3,795 posts of VROs with VRAs

Government in the G.O.Ms.No.13, dt. 27.01.2020 accorded permission to all the District Collectors in the State to fill 3795 posts of Grade-II Village Revenue Officers from the cadre of VRAs in relaxation of relevant Rules on the subject such as 3(iv)  and Rule 4(iv)(a)(ii) and (iii) of AP VRO Service Rules 2008 as one time measure.

 

d)  Extending benefit of five days Spl. Causal Leave to women employees: Government have issued orders for extending the benefit of availing five (5) days Special Casual Leave in addition to the existing (15) days Casual Leaves and (5) Optional Holidays per calendar year to all the Women Employees working under the control of State Government vide G.O.Ms.No18, Finance (HR.IV-FR&LR) Department dt.10.03.2021.

 

e)  Continuing of payment of 30% of HRA to relocated employees:

 

 

The payment of 30% HRA to relocated employees from Hyderabad working in AP Secretariat and HODs is continued till date.

 

Increase in HR expenditure

 

 

a)  The Committee observed substantial increase in the salaries and pensions expenditure of the state. The expenditure on human resources has increased from Rs.52,513 crore in 2018-19 to Rs. 67,340 crore in 2020-21. The expenditure on salaries and pensions has surpassed (111%) the State Own Revenues in 2020-21 as depicted in the table below.


Table 2: Increase in HR expenditure (Rs. crore)

 

Category

FY 18-19

FY 19-20

FY 20-21

Salaries

31,165

33,102

37,458

Pensions

18,112

21,491

21,936

Other Salaries

3,235

6,297

7,947

Total Salaries + Pensions

52,513

60,890

67,340

State Owned Revenue

62,503

60,934

60,688

Revenue Expenditure

1,28,569

1,37,475

1,51,148

Total Expenditure

1,63,960

1,73,701

1,85,626

% of SOR

84%

100%

111%

 

 

b)  Further, it is observed that in comparison to various States of India, the HR expenditure as a percentage of overall expenditure in Andhra Pradesh is consistently very high as tabulated below:

 

 

Table 3: HR expenditure as per cent of overall expenditure

 

(Salary + Pension)

% of Total Exp.

 

2018-19

 

2019-20

 

2020-21

AP

32%

35%

36%

Chhattisgarh

31%

33%

32%

Maharashtra

17%

20%

31%

West Bengal

25%

27%

31%

Odisha

27%

29%

29%

Madhya Pradesh

23%

23%

28%

Haryana

30%

29%

23%

Telangana

27%

27%

21%

 

 

 

Study of 7Th CPC report of Government of India and PRC of other States

 

15. The Committee also examined the 7th CPC report of the Government of India and the reports of Pay Revision Commissions of other States in order to understand the procedure and obtain a comprehensive view on the pay revision scenarios followed by the Government of India and other States.

 

16. The Committee also undertook a comparative study across GoI, other States with reference to Andhra Pradesh of key parameters like periodicity of the PRCs, fitment, HRA slabs and additional quantum of pensions which influence the pay revision as detailed below.

 

 

A. Fitment

 

 

a)  The Fitment sanctioned over the past few years has been consistently high in the State. In the 9th  PRC, a 39% fitment was sanctioned against the recommended 27% & in the 10th PRC a fitment of 43% was sanctioned against


the recommended 29%. Thus, in the last 10 years (2 PRCs), the fitment sanctioned to the State Government employees was 82%, whereas the fitment sanctioned for Central Government employees for a period of 10 years (7th CPC) was only 14.29%.

 

 

Table 4: Fitment recommended and sanctioned in AP

 

 

Sl. No

PRC

Fitment Recommended (%)

Fitment Sanctioned (%)

1

1974

5

5

2

1986

10

10

3

1993

10

10

4

1999

20

25

5

2005

10

16

6

2010

27

39

7

2015

29

43

 

 

b)  The fitment recommended in the other States is lower than that of the Andhra Pradesh. It is also observed that many states are adopting the Central Pay Commission recommendations as tabulated below:

 

 

Table 5: Fitment Comparison - GoI and States

 

Government

Effective from

Fitment (%)

Andhra Pradesh

NA

23 (27)

Kerala

1st July 2019

10

Tamil Nadu

1st January 2016

2.57 factor

Central Government

1st January 2016

14.29

Uttar Pradesh

1st January 2016

14.29

Gujarat

1st August 2016

14.29

Rajasthan

1st October 2017

14.29

 

 

c)  The Committee observed that one of the key purposes of constituting PRCs by the States and by the Government of India is to recommend a suitable fitment benefit to employees to neutralise inflationary impact on prices of essential items of consumption effected through the merger of dearness allowance with basic pay. The procedure supposed to be adopted by the PRCs is also broadly similar i.e. by following the ILC norms. However, the Committee observed that the recommendations made by the latest CPC, latest PRC of Telangana and Andhra Pradesh are at wide variance. The 7th CPC has recommended 14.29% fitment for a period of 10 years, the Telangana PRC has recommended a 7.5% fitment for a period of 5 years, whereas the 11th PRC of Andhra Pradesh has recommended a 27% fitment for a period of 5 years. This wide variation in the fitment recommendations indicates that the process of pay revision is highly subjective and open to interpretation.


B.  House Rental Allowance (HRA)

 

 

a)  The HRA rates in Andhra Pradesh are higher, when compared with other

States and that of the Government of India, as seen in the table below.

 

Table 6: HRA rates comparison

 

 

Population

10th PRC

(Existing)

11th PRC

( Proposed )

Telangana

PRC

 

7th CPC

 

Karnataka PRC

50 lakhs and above

-

-

24%

24%

24%

25 lakhs to 50 lakhs

-

-

-

16%

-

 

10 lakhs to 25 lakhs

20%  Max. Rs.15,000

22% Max. Rs 22,500

 

17%

 

16%

 

16%

 

5 lakhs to 10 lakhs

20%  Max. Rs.15,000

20%  Max. Rs.20,000

 

17%

 

16%

 

16%

 

2 lakhs to 5 lakhs

20%  Max. Rs.15,000

20% Max. Rs.20,000

 

17%

 

8%

 

8%

 

50,000 to 2 lakhs

14.5%  Max. Rs.15,000

14% Max. Rs.20,000

 

13%

 

8%

 

8%

 

Others

12%  Max. Rs.15,000

12% Max. Rs.17,000

 

11%

 

8%

 

8%

Shifted from

Hyderabad

30% Max. Rs.20,000

30% Max. Rs.26,000

 

-

 

-

-

 

 

 

C. Pensions

 

 

a) The 11th PRC has recommended to consolidate pension/family pension with dearness relief as on 1-7-2018. 27% of the basic pension/family pension is to be treated as fitment benefit.

 

b) A revised scale of additional quantum of pension starting from 70 years of age has been suggested as shown in the table below. It is to be noted that the

6th and 7th Central Pay Commissions have recommended additional quantum

of pension only from the age 80 years and above, which is also