REPORT OF THE COMMITTEE OF SECRETARIES HEADED BY THE CHIEF SECRETARY TO THE GOVERNMENT TO EXAMINE RECOMMENDATIONS OF THE ITH PAY REVISION COMMISSIONREPORT OF THE COMMITTEE OF SECRETARIES HEADED BY THE CHIEF SECRETARY TO THE GOVERNMENT TO EXAMINE RECOMMENDATIONS 1. OF THE 11TH PAY REVISION COMMISSION The Government of Andhra Pradesh has constituted the 11" 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 11" PRC are as mentioned hereunder. 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. 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. 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. 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. To examine and review the existing pension structure for pensioners and make recommendations which may be desirable and feasible. ax wo vi. vii. viii. 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. To give its recommendations on any other matter referred to it by the State Government during the tenure of its office. In formulating its recommendations, the Commission may take in to account the overall financial position of the State. . 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 . 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 1 Ith 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; 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; To study the Automatic Advancement Scheme as modified from time to time keeping in view the anomalies that have arisen during the n of the said scheme and also to examine whether the said implementatio1 mmendations scheme should continue in its present form and to make recot in this regard; To examine the need fo other Allowances and other perquisites in cash or kind now all make recommendations regarding their continuance or otherwise and if vontinuance is recommended what modifications, if any are deemed desirable with regard to their rates, terms and other conditions which should govern them in future; mine and review the existing pension structure for may be desirable and feasible; 1 various Special Pays, Compensatory and various lowed and to pensioners and To exal make recommendations which v \vi. In formulating its recommendations, the Commission may take into account the overall financial position of the State. 4. The 11" Pay Revision Commission has submitted its report to the Government on 05-10-2020. . 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 11 PRC with the following members: i Dr. Sameer Sharma, Chief Secretary Sri Ajeya Kalam, (Retd.) Principal Advisor to CM |. Dr. Rajat Bhargava, Special Chief Secretary, Revenue jv. Sri Shamsher Singh Rawat, Principal Finance Secretary vy. 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 11" PRC. 1. The Principal Finance Secretary has explained all aspects of the 11 PRC report in detail & made a presentation on various recommendations of the report. The recommendations of 11 PRC are summarised below. Recommendations of 11" 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 ben fit of 27 % on Basic Pay. c. Formulation the Master scale with the following features: Minimum Pay %.20,000/- per month. ii | Maximum Pay in the Master scale &. 1,79,000/- p.m. Ratio between Minimum and Maximum of the Scale 1:8.95. Annual increment to range from 3% of the pay in initial stages to 2.34% at the end. y. _ Periodicity of increase in increment is recommended to be 3 years up to stage 72 in the Master Scale increments beyond time scale up to 5. ct from 1.7.2018. yi. Continue grant of stagnation vii. The new pay scales to come into effe i t viii. Monetary benefit implementation date left to GovernmentMajor Allowances a. De : pamess Allowance: Recommended a conversion factor of 0.91 for . rom 1.1.2019 for every 1 % increase in DA sanctioned b: ae aa ied by the Government of . House Rental Allowance: Whil nui k ance: le continuing the existing classificati HRA, introduced a new class of cities with a population ab Serine increased their HRA slab from 20% to 22%. nes 3 eee Allowance: Recommended two slab rates, one fc ak es . us japacnam and Vijayawada and the second for the 12 other Munici i cau The quantum of allowance is increased for all the pay es nicipal Corporations of Visakhapatnam and Vijayawada %400-1000 and othe Municipal Corporations %,300-750 “ Pensionary Benefits * To consolidate pension/| family pension with dearness relief as on 1.7.2018. 27% of the — pension/family pension is to be treated as fitment benefit. * Arevised 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 Employces 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. 4. Full-time Contingent/Daily Wage/ Consolidated Pay/NMR employees: Enhanced to 20,000+DA APSRTC a. Pay Scale: Make the Revised Masi applicable to the PTD employees also. b. Assignment of equivalent Governmen' \ : ‘ revised pay scale to each catepory ofPTD employee. Assign the Special Grade Post Pay Scale and Special Promotion Post Scale 1-B/ Special Adhoc Promotion Post Scale 1-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. ter Scale comprising of 32 Grades and 83 stages, t Pay Scales: Assigning a correspondingnthe Basic P; $-2017 be allowed. ic Pay as on 01-07- of pay fixation of em, iployees who have joi 01-07-2018 and 01-01-2020, ee UY - House Rent Allowance CARA): Apply the for the State governmer ply the same rates of HRA, as recommended nt employees to the PTD employees also with effect from City Compensatory Allowance (CCA): Allow the City Compensatory allowance to the PTD employees at the same tates 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. 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. . 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 Pensionary Benefits: PTD employees, absorbed in Government service one f i 2020, be given an option to either continue with EPS-95 or join whe ee weer employees, who opt for CPS, automatically be covered under 7 “ ae applicable to the other Government employees. In case, they opt a EPS-95, they may get the benefit under the APSRTC Gratuity i mittee in The recommendations of the 11" PRC were discussed by the Commit extensive detail.ee 9 The Commitee has also examined the Aspects relating to the impact of bifurcation on the financial position of the State mployee welfare Measure: by the Government stich as sanction interim rele, increase in slates fore Categories OF employee Minimum Time Scale for Contract employees; absi ae of APSRTC employees into State Governme: ‘Xpenditure on human poe issues relating to Village/Ward Secretariat employees, formation of Andhe Pradesh Corporation for Outsourced Services (APCOS) for the welfare a 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: 11" PRC recommendations with fitment @ 23% - Rs. 11,557 cTore/annum Scenario 2; 11" PRC Tecommendations with fitment @ 27% - Rs. 13,422 crore/annum Scenario 3; 11® PRC tecommendations with fitment @ 14.29%, HRA and Additional Quantum of Pension as per 7* CPC ~ Rs, 9,150 crore/annum Scenario 4: 11% PRC recommendations with fitment @ 23%, HRA and Additional Quantum of Pension as per 7" CPC - Rs. 10,211 crore/annum Scenario 5: 11% PRC recommendations with fitment @ 23.5%, HRA and Additional Quantum of Pension as per 7® CPC - Rs. 10,773 crore/annum Scenario 6: 11° PRC recommendations with fitment @ 27%, HRA and Additional Quantum of Pension as per 7" CPC - Rs, 11,413 crore/annum Scenario 7: 11° PRC recommendations with fitment @ 30%, HRA and Additional Quantum of Pension as per 7* CPC - Rs. 12,736 crore/annum In addition to the above, the additional financial implication on account of implementation of 11* PRC for PTD employees will be around Re. 225 crore to Rs. 250 crore/annum as worked out by 11 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, IL. It was also decided in the aforesaid meeting to consult the Tepresentatives 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 Tepresentatives of the following employees’ associations: ; i. Andhra Pradesh Non-Gazetted Officer's Associationi, 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 Employces Association 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 mecting, the associations Tequested 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. viii. 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. Considering that virtually all the major assets are located in and around which has since become an integral part of Telangana State, notwithstanding it bein, common capital, Andhra Pradesh has forfeited iB pital, a ig the mi t several institutions, lost revenue, lost sul bstantial lost industries, and inherited massive amount of them. ° Hyderabad city, major economic assets, lost i i ctor, strength in service sector, s ee liabilities without having the wherewithal to service cation of the State of Andhra Pradesh eae meinen eee smi and financial parameters of the State. has had disastrous impact on economic©) Tax revenue of successor state was only 46 % of the combined State on the of state bifurcation. The population, however, of the successor state was 58. ve From the 2020-21 RE figures, its evident thatthe successor State of ap, na its agrarian economy, could mobilize only 39 % of the combined Tevenucs of AP and Telangana. This declining share also demonstrates the negative impac, 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. 8) 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 Jost 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. )) 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 Gol, 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) ee aiges of all the above has led to deterioration of fiscal health of the ‘ate. The State from a revenue surplus position in the combined state has become revenue deficit. The revenue deficit n icit stood at Rs. deficit at Rs. 54,370 crore in FY 2020-21. SOP core and fiscal 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.0. 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 Ist 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. Ist 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. i i i 11,270.21 crores So far, the Government has paid Interim Relief, to a tune of! Rs. . 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 nn a jeazious categories like Anganwadi workers, Asha workers, etc. as oe he rable below. The yearly expenditure on account of salaries to these Bi employees has gone up from Rs. 1,198 crore to Rs. 3,187 crore.Table 1: Increase in salaries of various catego of employees Anganwadi Workers | 10,500 | _11,500 Mini Anganwadi Centre | 6,000 | 7,000 -O-MS.No.13 Date Anganwadi Helpers | 6,000 | 7,000 P0019 526 > |p Village Organization 45.195 R&RD Assistants/Sangamitras/| 2,000 | 10,000 _ | G-0-RT.NO.699 Animators : Dated: 11-11-2019 | 28.152 Sanitary workers 3 |Masup — | (15.08.2020) 8,000 | 18,000 | G.0.MS.No.233 Supervisors 12,000 | 18,000] Pste#: 2608-2019 | 9-00 4 | HMarw 4000 to G.O.MS.No.a7 Asha Workers 8500 |_ 12.00 | areas 708.2019 | 4416 MNO 6,700 | _17,746 2 ANM 10,020 |__28,000 1 S | LET&F Dhobi 6,700 | 13,000 (as per] G-O.MS.No.6 é PRC-2015) | Dated:26-04-2021 2 Bove 73,000 (as per = — 6,700 | pRC-2015) e 6 laa "ommunity Hea Tribal welfare | Comm 400 4000 | BOMSNolI7 T2652 Daily Duty All c j ly Duty Allowance to G.0.MS.No. Home Home Guards = ean Davest21o20i9 | 14984 8 | School Edu CookcumHtelpers | 1,000 | 3,000 | GOMSNoSI | | 5, 955 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. The per annum additional benefit to the contract employees on account of these d measures is approximately Rs. 360 cr per annum. 10Table 1: Increase in salaries of various category of employees : Anganwadi Workers | 10,500 | 11,300 WCD&SC [Mini Anganwadi Cenc 6,000 7,000 -O-MS.No.13 Date was Anganwadi Helpers 6,000 7,000 ee, a eee Village Organization 75 e Assistants/Sangamitras/| 2,000 10, G.O.RT.NO.699 aitnataee 1000 | Dated: th-1-z019 | 28.152 Sanitary workers MASUD | (15.08.3020) 8.000 | 18,000 | G.0.Ms.No.233 SipEGn 12,000 } 18,000 | Dated: 26.08.2019 | 29.800 HM&Fw 40000 ate cor 10,000 | GO.MS.No.a7 ace MNO 6,700 | _17,746 2 ANM 10,020 | 28,000 1 LET&F i Dhobi 6,700 | 13.000 as per] G-0.MS.No.6 a PRC-2015) | Dated:26-04-2021 2 Bee 13,000 (as per Communiiy HEE 6.700 PRC-2015) 2 Tribal welfare munity Healt 4 G.O.MS.No.117 Worker - oY 4000 | Datea-o3.z2010 | 2652 Hose y Allowance to G.0.MS.No.876 : . Home Guards eo ae Dated:12-10-2019 | 14,984 School Edu Cook-cum-Helpe: 1,000 G.O.MS.No.61 peels 7.000 Datea:13.09.2019 | 24.833 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 b) °) d) 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. Further, orders were issued providing for 180 days of paid matemity 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. 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. The per annum additional benefit to the contract employees on account of these measures is approximately Rs. 360 cr per annum. 104. Absorpti rption of APSRTC employees into State Government. The Government Of A.P. has ab: Government servic ‘as absorbed all APSRTC emp e w.e.F., 01-01-2020 b: js mployees into Departm Y creating a new Publi About 3.500 om bnder the administrative contol of T Ra Depurere . ” employees of AP: “ 7 Service. Salaries are paid to all BTC ere absorbed into Government PTD employees from J; ne r yes from January, 2020 onwards ¥ the Government. An expenditure of Rs.5,380 crores has been incurred loyees 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. 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 Ist 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 ean ‘ neva Administration (SU.I) Department, Dee AaTe .O.Ms.No.136, ministration (SU.I) Department, Dt-02.07 £0" : / ii) eri leaibpes have benefited through APCOS. Salaries ee ia 7 through PCOS on 1 working day of every month to the be counts 0 all candidates. Statutory benefits like EPF & ESI are ave Lae ae iii) An expenditure of Rs. 2,040 crore is being incurred pe! APCOS.8. Other Welfare Measures to the Employees 4) Resolving of promotional channel to MPDOs Long pending issue of finalization of seniority among Mandal Parishag 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 ! for Direct Recruited MPDOs, MPDOs promoted from the feeder category of KO RD and MPDOs promoted from feeder category of Women and Child Welfare Department vide Memo No. PRROI-P! ST(MPDO)/18/2021-BS V, PR & RD (Lsst- V) Dept. dated 05-08-2021, Creation of promotional channel to VROs (Gr-I); Vide G.O.Ms.No.154, Revenue (Ser,1I1) E tment, 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.I11) Department, dated 08-05-2020, ¢) 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. €) 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.ey Other Salaries B12 er Salaries p—18.112 T2149) a pl | 21,936 Total Salaries + Pensions San a a Wwned Revenue 62,503 soe seat enditure [1,285 See as ; 128,569 1,37,475 151,148) 163,960 1,73,701 | 1,85,626 84% 100% 111% b) Further, it is i cxpentien a a hat in comparison to various States of India, the HR : ntage of overall expenditure i . i Consistently very high as tabulated below: wm Anahea Pradesh i Table 3: HR expenditure as per cent of overall expenditure AP 32% 35% 9 (Chhattisgarh 31% 33% a [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 7™ CPC report of Government of India and PRC of other States 15. The Committee also examined the 7" 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 Gol, 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 s has been consistently high in a) The Fitment sanctioned over the past few years i : i the State. In the 9" PRC, a 39% fitment was sanctioned against the recommended 27% & in the 10" PRC a fitment of 43% was sanctioned against 13the recommended 29%, Thus, in the last 10 years (2 PRCS), the firme sanctioned to the State Government employces was 82%, whereas the ftmen, sanctioned for Central Government employees for a period of 10 years (7 CPC) was only 14.29%, Table 4: Fitment recommended and sanctioned in AP 1974 1986 1993 1999 ~ 2005 2010 | - aes 2015 a a __ is lower than that of the Andhra b) The fitment recommended in the other Stat Pradesh. It is also observed that ma ¢ adopting the Central Pay Commission recommendations as tabulated below: Table 5: Fitment Comparison - Gol and States |Andhra Pradesh 3 (27) [Kerala Ist July 2019 10 (Tamil Nadu Ist January 2016 2.57 factor ‘entral Government ist January 2016 14.29 [Uttar Pradesh Ist January 2016 14.29 ujarat Ist August 2016 14.29 [Rajasthan ist October 2017 14.29 ©) 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 ie. 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 7" 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. 14B. House Rental Allowance (HRA) a) The rates in Andhra re o1 The HRA Andhra Pradesh are higher, when compared with other tates and that of the Government of India, as seen in the table below. Si id that of low. Table 6: HRA rates comparison Population 10thPRC | 1ithPRO | Ti lay 7% langana_ tin, el [50 lakhs and above isting) | (Proposed) | _PRC Boise a ee [25 lakhs to 50 lakh: : = 24% | 2A¥e 2A 7 : 16% - 10 lakhs to 25 lakhy 20% Max. | 22% Max. z Rs.15,000_| Rs 22,500 | __'7% 16% 16% [5 lakhs to 10 lakhs | 20% Max. |} 20% Max. akhs | ‘Rs.15.000_| Rs.20,000_ | _!% 16% he btakhstoSlakhs | 20% Max. | 20% Max. sto Slakhs | ‘pe'5,000 | Rs.20,000 | 17% Se - ko, 14.5% Max. | 14%M 0,000 to 2lakhs_| Re 15.000 Rs,20,000 13% 8% 8% 12% Max. 12% Max. [ome s.13,000__|_Rs.17.000 | __1% = ble IShifted from 30% Max. | 30% Max. - [Hyderabad Rs.20,000. Rs.26,000. 2 - C. Pensions a) The 11 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 6" and 7* Central Pay Commissions have recommended additional quantum of pension only from the age 80 years and above, whi by many other states. Table 7: Additional Quantum of Pension rates ich is also being followed ‘Age of the Pensioner | 10° PRC AP| 11°PRCAP | 7*CPC Gxisting) | (Proposed) From 70 and less than 75 10% 10% : From 75 and less than 80 15% 15% - From 80 and less than 85 20% 20% 20% From 85 and less than 90 25% 30% 30% From 90 and less than 95 30% 35% 40% From 95 and less than 100 35% 40% 50% 100 years and above 50% 50% 100%17. In view of the above, the Committee observed that the Tecommendations of the ls PRC has to be examined in conjunction with the overall fiscal Position of the State the welfare measures already extended to the employees, the report of the ys Central Pay Commission, the latest PRC report of Telangana and the Pay fixation/fitment followed in other States of the Union viz. Gujarat, Maharashtra, Uttar Pradesh, etc, 18. After detailed analysis of the salient features of the report of the 11" PRC as per the framework mentioned above, the Committee of Secretaries has made the following recommendations regarding implementation of 11" PRC recommendations. 18.1 Pay Scales 11" PRC Recommendation a) The Master Scale concept is retained with 32 Grades and 83 stages (increased from 81 stages). The Master scale is formulated with the following features: 4 Annual increment to range from 3% of the pay in initial stages to 2.34% at the end. i. Periodicity of increase in increment is recommended to be 3 years up to stage 72 in the Master Scale, 4 years for stage 73-80 and 2 years thereafter. 5) The New Pay Scale is evolved by merging 100% of Dearness Allowance (as on O1-07- 2018) with Basic Pay and adding the fitment benefit. 9 The ‘Minimum Pay’ for the lowest paid employee is to be %.20,000/- per month, 4) — The Maximum Pay’ in the Master scale is worked out to Rs1,79,000/- p.m. which represents a Maximum to Minimum ratio of 8.95, ¢) In the event of stagnation in pay scale, grant of up to 5 stagnation increments is recommended. D The Master Scale structure recommended is as follows: 20000-600-21800-660-23780-720-25940--780-28280-850-30830-920-33590-990-36560- 1080-39800-1 170-433 10-1260-47090-1350-51140-1460-55520-1580-60260-1700- 65360-1830-70850-1960-76730-2090-83000-2240-89720-2390-96890-2540-104510- 2700-112610-2890-121280-3 100-130580-3320-140540-36 10-154980-3900-170580- 4210-179000 (83 stages) yg The assignment of pay scales to the different categories of employees would be as recommended by the Commission in Volumes II, Ill and I V of this Report. Observations/recommendations of the Committee of Secretaries: The 11" PRC recommendations are acceptable in view of the enhancement of retirement age from 58 to 60 years and which justifies the key recommendation of increase of stages from the existing 81 stages to 83 stages. The other key recommendation regarding enhancement of minimum and maximum pay to Rs. 20,000 and Rs. 1,79,000respectively are also fc eer pee eee apoio ali Therefore, the Committee recommends ndations on pay scale at para 1(a) to 1(g) in toto. 18.2 Fitment 11" PRC Re _ : 27% on ees The Commission has recommended a fitment benefit of their calculati ay. 11" Pay Revision Commission arrived at 23% ulations based on ILC norms. However, it recommended a 27% fitment benefit as Interim Relief of 27% i i is alread: i TT 11 PRC report reads: fo eady being given by the State Government. he fitment benefit as per “The fitment benefit should be allowed so as to bridge the gap between the increase in Minimum Pay, as determined in the previous chapter based on the ILC norms, on ol- 07-2018, over that fixed as on the date of implementation of the last RPS (i.e. 01-07- 2013) less the neutralization of inflationary impact on prices of essential items of consumption effected through the merger of Dearness Allowance with Basic Pay. Based on this principle, in the present case the fitment works out to 23% “Keeping in view the fact that the Government has ‘already approved an Interim Relief of 27%, which is higher than the fitment percentage arrived at by the Commission based on the ILC norms, as mentioned above, the Commission deems it proper to recommend a fitment benefit of 27% “ Observations/recommendations of the Committee of Secretaries: The Committee observed that the Fitment sanctioned over the past few years has been consistently high in the State. In the 9” PRC a 39% fitment was sanctioned against the recommended 27% and in the 10" PRC fitment of 43% was sanctioned against the recommended. 29%. Thereby, in the last 10 years (2 PRCs), the fitment sanctioned to State Government employees was 82%, whereas the fitment sanctioned for Central Government employees for a period of 10 years (7* CPC) was only 14.29%. Further, the Committee also noted that the Telangana PRC has recommended a 7.5% fitment for a period of 5 years, whereas the 11th PRC of Andhra Pradesh has recommended a 27% fitment for a period of 5 years. This wide variation jin the fitment recommendations indicates that the process of pay revision js highly subjective and open to interpretation. Further it is also observed that, increasingly, many states are dispensing with the constitution of State Pay Commissions and have either adopted or are moving, towards adoption of Central Pay Commission recommendations. After examining the above, the Committee is of the considered view that the higher fitments over the years have led to increase in HR expenditure beyond state own revenues and the State cannot sustain five yearly periodic pay revisions with abnormally high fitment benefits. Therefore, the Committee recommends to adopt a fitment of 14.29% as followed by the 7 Central Pay Commission.18.3 Date of Effect of New Pay Scale 11" PRC recommendation: The new pay scales may come into effect from 1-7-2918 Government may however take a view regarding the date from which the monetary benefit would accrue keeping in view its resource position and the various demands thereon. Observations/recommendations of the Committee of Secretaries: The Committee tecommends the following on Date of effect of New Pay Scale, a) The Revised Pay Scales 2021 (RPS 2021) may be implemented w.e.f. 1-7-2018 as. recommended by the 11" PRC, b) The Revised Pay Scales for PTD employees (erstwhile APSRTC employees) may be implemented w.c.f. 01-01-2020. c) The monetary benefit may be implemented w.e-f. 01-10-2022 i.e. salary for the month of October 2022 payable in November 2022. d) No arrears will accrue since the Interim Relief will continue to be paid till the implementation of the monetary benefit. 18.4 Dearness Allowance 11" PRC recommendation 4 The existing practice of revising the Dearness Allowance (DA) twice a year, on Ist January and Ist July, in tandem with the sanction of DA by the Government of India may be continued. 4) Since the Central rates of DA are based on the DA merged scales of 1-1-2016 while in the State DA is recommended to be fully merged on 1-7-2018, the Commission recommends a conversion factor of 0.91 for sanction of DA from 1-1-2019. It means that for every 1 % increase in DA sanctioned by the Government of India, the DA to be sanctioned by the State to its employees would be 0.91% starting from 1-1-2019. Observations/recommendations of the Committee of Secretaries: The recommendation of the PRC is only a continuation of the present policy of sanctioning additional DA twice a year. The conversion formula to be adopted for release of DA based on Central DA has been worked out by PRC duly taking into the account the DA that exists as on 01.7.2018. The Committee recommends that the Conversion factor of 0.91% for sanction of DA from 1-1-2019 may be accepted in toto. 18.5 House Rent Allowance 11" PRC Recommendation a) RA may be allowed at the following rates @ ~~ @ 30% of basic pay subject to a ceiling of %.26,000/- p.m. for employees shifting from Hyderabad on bifurcation of State.ii) ic (i) @ 22% of pay basic pay subject toa ceili ee ing of &.22,500/- p.m. in cities wit (O lakh 7 (ii) @ 20% ic je @ : 6 of pay basic pay subject toa ceiling of 8.20,000/- p.m. in cities wit population of above 2 lakh and up to 10 lakh. re (wv) @ 14.5% ie oe 4.5% of | ay basic pay subject to a ceiling of %.20,000/- p.m. in cities h population of above 50,000 and up to 2 lakh 0) Rest of the employees @12% subject to a limit of .17,000 p.m. The Commission however does not concur to the view of certain sections of employees that the same rate of HRA should be allowed for the staff recruited/ posted newly after shifting of the capital, since such employees have faced no unexpected disruption and have joined at Amaravati with full knowledge ofall the extant service conditions; b) Additional HRA in lieu of rent free accommodation is retained at 8 % of basic pay, but the monetary ceiling is recommended to be increased from %.2,000/- to €.2, 600/- p.m. Observations/recommendations of the Committee of Secretaries: The Committee examined the structure of HRA being followed by the Central Government and other States like Tamil Nadu, Karnataka, Rajasthan, etc. The 7 CPC followed a two-fold approach to arrive at appropriate rates of HRA. 1. It compared the rise in housing compensation with the cost of housing in major category cities. 2. It compared de novo the HRA after the rise in basic pay proposed with representative house rents in major category cities. The 7" CPC safely concluded that the rise in housing compensation has largely kept pace with the rise in rental values of all categories of cities. In view of the above, the Committee recommends to adopt the HRA slabs being followed by Government of India (7" Central Pay Commission) as presented below. « Employees in cities having a population up to 5 lakh: 8% of basic pay « Employees in cities having a population from 5 to 50 lakh: 16% of basic pay « Employees in cities having a population more than 50 lakh: 24% of basic pay The Committee also observed that the benefit of higher HRA was accorded for a limited period to mitigate the immediate impact of the relocation of employees from Hyderabad as a temporary measure for a limited period. The continuance of the same after the elapse of a period of more than 6 years may not be reasonable. Therefore, the Committee recommends to discontinue the same. The Committee noted that there may be a likelihood of reduction in the gross pay of some employees due to revision of the HRA slabs. Therefore, the Committee recommends to protect the gross pay of such employees as on the date of implementation of monetary benefit to avoid any financial loss and inconvenience. 19This may be done by granting Personal Pay (PP) equivalent to the differentiat amount. 18.6 City Compensatory Allowance unt of City Compensatory Allowance, the 11 PRC Recommendation: For the purpose of ded two slab nates, one for Visakhapatnant and Vijayawada and the is increased for all Commission has recomme second for the 12 other Municipal Corporations. The quantum of allowanc Visakhapatnam and Vijayawada 8400-1000 and the pay ranges (Municipal Corporations of other Municipal Corporations %,300-750). Observations/recommendations of the Committee of Secretaries: The Committee joted that the Government of India and several other States have discontinued the concept of City Compensatory Allowance (CCA), The 6" CPC while recommending, the abolition of CCA has noted that “the classification of regions for the purposes of CCA is of the population, It has been contended that size of ‘the population ne Commission also notes mainly based on the siz cannot be an adequate index of the expensiveness of the localities. that the Consumer Price Index numbers measure the changes in the price level over a period of time at a given place and do not indicate variations in the price levels from place to place at one ssifving cities on the basis of relative time. The index, therefore, does not provide any criteria for expensiveness. This show that CCA does not really address the problem of providing proper compensation for relative expensiveness of a particular region/ city, The Commission also notes that, apart from the problems of Housing and Transportation, larger cities and towns have much such, no rationale may now exist for compensating any better facilities than smaller places. As other factor other than accommodation and transportation in order to meet the high cost of living in large cities” In view of the above, the Committee recommends to discontinue the CCA in Andhra Pradesh as well in line with the practice being followed by Government of India. 18.7 Advance Increments 11 PRC Recommendation: The Commission has recommended not to grant in the normal course any special increment for possessing higher qualifications. Observations/recommendations of the Committee of Secretaries: The Committee, after examination of the recommendation, proposes that the same may be accepted in toto. 18.8 Loans and Advances 11" PRC Recommendation a) The Commission has recommended that the Government tie-up with financial institutions Jor grant of House Building/ Personal Conveyance loans and link up repayment to salary disbursement. Back-ended subsidy of 2.5% has been recommended on such loans;2) Pending such tie up, revised eligibitities Rate have bee in nape rn recommended in resp amounts and floating rate Of interest linked toR . t ofall types of advances; ” tis recommended that the eli ibility for “Adval i Ly, nce. he Pasey ir : b nen ased (0a maximum of 3 times during the Sap of 7 years between the Durchase of tivo Previous computer ad "ance, Observati ., ae! snore! Tecommendations of the Committee of Secretaries: The Committee — mends that the Government may facilitate tie up of loans with financial stitutions for grant of House Building/Personal Conveyance/Personal Computer loans a ink i ins and link Up repayment to salary disbursement, duly negotiating the most favourable interest tates for the employees, Jor purchase of Personal Computer’ may entire service career subject toa minimum successive computers and complete repayment of Till the above tie-up is made, the Committee proposes that the existing arrangement may be continued. 18.9 Leave Benefits 11" PRC Recommendation a) Additional 5 days Casual Leave has been recommended in favour of non-teaching women employees on par with the teaching women employees; 4) Child Adoption Leave up to 180 days is recommended for woman employee having less than two surviving children if she legally adopts a child up to one year of age. Subject to the same conditions, paternity leave up to 15 days may be extended to ‘single’ male employees (unmarried/widower/ divorcee) within a period of 6 months of child adoption; ©) Child Care Leave has been recommended to be increased to 180 days in a maximum of three spells. It may also be extended to ‘single’ male employees (unmarried/widower/ divorcee); d) Special Casual Leave of up to 7 days in a year is recommended for orthopedically challenged employees needing to change prosthetic aides. Same duration of Special Casual Leave has also been recommended for Nursing staff working in high risk ward; ¢) Revised rates have been prescribed for Ex-gratia Allowance payable to the employees who are granted extraordinary leave for the treatment of certain diseases. Observations/recommendations of the Committee of Secretaries: The Committee observed that 11 PRC has recommended additional leaves for women and orthopedically challenged employees which are justified and progressive big Hence, the Committee recommends to accept the recommendations of 11) Leave Benefits in toto.18.10 Medical Renefi 11° PRC Recommendation 8) In onder to ensure 8 sal sustainability of EHS, the quantum of employees’ contribution id he imomrased in steps over a period of time along with similar step-up in the Govrerment contribution; 8) The pending ims of the network hospitals should be settled expeditiously by releasing the Arogvasri Trust; eddinomal ©} The facility of Annual Health check-up may be extended to the Pensioner and his/her spouse; @ The Dr YSR Arogpasri Trust may hold talks with a few hospitals in Hyderabad, Bangalore and Chennai, empanelled by the concerned State Governments, for inclusion under the EHS: ©) Medical Allowance to Service Pensioners / Family Pensioners is recommended to be erhanced to &.500/- p.m. Observations/recommendations of the Committee of Secretaries: The Committee, afver examination of the recommendation, proposes that the same may be accepted in toto. 18.11 Special Pays 11% PRC Recommendation: The quantum/rate of Special Pay for the existing category of employees has been recommended to be suitably enhanced. In respect of a few categories, we have recommended its discontinuance. Observations/ recommendations of the Committee of Secretaries: The 11" PRC has inter alia recommended constituting a separate Committee of senior secretaries and HR experts by the Government to review granting of special pay to the employees and pending the same 11° PRC recommended increase in rates of special pay in certain cases. The Committee has observed that the approach of the 1 1" PRC is adhoe as the recommendations are not in consonance with the ToR and therefore opines that & nsive view needs (0 be taken so that there is no discrepancy in the grant of special pays Therefore, the Committee accepts the recommendation of LU" PRC to the extent of constitunon of a separate committee of senior secretaries and HR experts to examine the issue of Special Pay and the existing guidelines on special pays ae ded to be continued ull the recommendations of the aforementioned comprehe: recommen committee are finalisediW. 12 Other Allowances 1 PRC Recommendation a) b Dd k) » m) Mileage whiele Hlowance is re inded to be increased to 2.15.50 per k.m. for petrol driven ‘ ncreé 1 fo 8.11.50 per kam. for diesel dri ; wns Jor diesel driven vehicles and 2.6.40 per k.m. for motor cycles! Rates o ily is , ‘ ; of Daily — and Lodging Charges may be enhanced by 33 % to %.300-600 per day for tours inside the State and &,400-800 per day for tours outside the State Perino os oe 1 the purpose of payment of lodging charges a fresh classification of places, inside and tside the State, has been drawn up and lodging charges have been fixe : we Jing charges been fixed from %.300/- to Conveyance charges to Court Masters and Personal Secretaries to Hon'ble Judges of A.P. High Court/ APAT has been increased toa maximum of €.5000/- per month. Faved Trvelling Allowance enhanced to a maximum of %.1700/- per month from the existing &.1200/- per month. The rates applicable fr minimum 20 days touring ina month have been rationalised pro rata compared tothe rats fixed for minimurs 15 days touring in ‘a month, Several new categories of employees from the Departments of Animal Husbandry, Cooperation, Sericulture, School Education and Panchayatiraj/ Tribal Welfare Engineering have been recommended to be added to the list to get FTA. The limit for Tuition Fee reimbursement has been enhanced to %.2500/- per annum per child, subject 10 a maximum of two children. Funeral Charges of deceased ‘employee has been recommended for increase to %.20,000/-. Special Compensatory Allowance payable, for working in the Tribal areas has been increased from the existing minimum and maximum of &.500/- per month and %.1275/- per month respectively to %. 700/- per month and %.1800/- per month. Substantial increases have been suggested in Uniform Allowance, Uniform Maintenance Allowance and Stitching Charges. Enhanced admissibility of Risk Allowance has been suggested and new categories have been added to the existing list of employees eligible for "Risk Allowance’ in the Departments of Animal Husbandry and Forest. ‘Ration Allowance’ has been recommended at enhanced rates. New categories have been for inclusion in the Insurance Medical Service and HM&FW departments. Increases have been recommended in ‘Emergency Health Care Allowance’, PG Degree and Diploma Allowance, Non Private Practice Allowance, Tribal Allowance and Rural ‘Allowance for several categories of employees in ‘Medical related Departments. ‘Readers Allowance’ to Visually Challenged teacher and lecturers is recommended to be enhanced by 33 percent, up toa maximum of ®. 1200/- per month. suggested) Delhi Allowance’ / ‘Special Compensatory Allowance’, 0 the staff working in the Andlirg Pradesh Bhavan at New Dethi. has been rvommended to be enhanced t0 15% of Basic Pay Subject 0.4 maximum of &.5000/- per month, ) ‘Special Gratuity Allowanee “to drivers of AP Bhavan has been recommended to be increased 108.307 per hour subject to a 1¢ of 100 hours in a month. P) ‘Conveyance Allowane Basie Pay subj ” Physically challenged employees has been enhanced to 10% of *Ct 10 a maximum of &.2000/- per month, Observations/recommendations of the Committee of Secretaries: The Committee, after examination of the Fecommendation, proposes that the same may be accepted in toto especially since itis beneficial to women and differently abled employees and are Progressive in nature, 18.13 Pensionary Benefits 11" PRC Recommendation: in nspect of pensionary benefits our recommendations are the following: 4. To consolidate pension/ family pension with deamess relief.as on 1.7.2018. 27% of the basic pension family pension is to be treated as fitment benef. b. To continue the existing provision of full pension after 33 years o ‘qualifying service with 5 ig pI wg ears of service weightage. Similarly, no change is recommended in the formula for fixation of pension / family pension. © A revised scale of additional quantum of pension starting from 70 years of age has been suggested 4. Ifa government servant dies while in service, enhanced family pension is recommended to be aid to his dependants fora period of up to 10 years without any upper age limit. Incase of death after retirement the enhanced family pension should be payable for a period of seven years or up to the date on which he would have attained 67 years, had he survived, whichever ts earlier. The conditions of 45 years age limit in respect of unmarried/ widowed/ divorced daughter & 7 . m . of family pensioners may be rescinded and the stipulation reganding having children may be tered 50 as to exclude widowed /divorced daughter having a child who has attained 25 years a of age or started earning. Ff To allow Deamess Relief on both the basic pensions (Service and Family) received by the f To same pensioner. The quantum of mininum pension/ family pension is recommended t0 be increased to g %.10000/- p.m. h. The maximum amount of Gratuity payable at the time of retirement is recommended to be h. The ma a enhanced from &.12 lakh to &.16 lakh.i, The maxi imit for fe masini limit for Death Relief amount on the death of a service pensioner! family pensioner is recommended to be enhanced to %.20,000/. fees ae j. The financial assistance is r led to be ; cre . is recommended to be in reased to the level of minimum servic service pension /famil 7 . pension family pension (210,000 per month) with dearness relief thereon after 1.7.2018. «The existing ceiling limit — Te xing ceiling limit of commutation at 40% of basic pension and provision regarding ion of commuted portion of pension after 15 years should be continued. Observations/recommendations of the Committee of Secretaries: The Committee recommends to accept the 11% PRC recommendations on pensionary benefits as mentioned in 13(6), 13(d), 13(f) to 13(k) in toto. Regarding recommendation on fitment ice. 13(a), the Committee recommends to accept to consolidate pension/family pension with dearness relief as on 1.7.2018. However, the committee recommends 14.29% of the basic pension/family pension to be treated as fitment benefit. Regarding recommendation on additional quantum of pension (AQP) ie., 13 (©), the Committee observed that the intention of providing AQP is to mitigate the additional expenditure on healthcare for the pensioners who are in advanced age. The Gol has introduced AQP in the 6" CPC ie. from the year 2006 only for the pensioners who are aged 80 years and above in different slabs duly considering the additional expenditure towards healthcare with increase in age peyond 80 years. The same age criterion was continued in the 7" CPC also. However, in contrast, basing on the recommendation of the 9" PRC in the year 2008 in the State of Andhra Pradesh, the AQP was introduced for the pensioners older than 75 years itself’ duly modifying the AQP slabs also. The entry age for AQP was further reduced to 70 years in 10" PRC along with rates and slabs. These changes adopted by the Govt of AP has led to substantial additional burden on state exchequer. The Committee observed that the entry age of 80 years and the slabs being implemented for AQP by the Gol are based on the reasoning that the older pensioners require a better deal because their needs, especially those relating to health increase with age. Keeping in view the general improvements in the nutritional standards, extensive availability of healthcare facilities including super speciality care and the support given by the Government of AP in the form of EHS and additional medical allowance to all the pensioners, the Committee is of the view that the AQP slabs followed by Gol shall be adopted in toto by the Government of Andhra Pradesh and recommends the adoption of the same. The Committee also noted that there is likelihood that the adoption of Gol slabs for AQP may reduce the gross pension to the pensioners in the age range of 70 to 79 years Therefore, the Committee recommends to protect the gross pension of such pensione: : as on the date of implementation of monetary benefit. This may be done by ee Personal Pension (PP) equivalent to the differential amount. aRegarding the recommendation on rescinding the age limit of 45 years in respect of unmarried/ widowed/ divorced daughter i.c., 13(¢), the Committee is of the view of that under normal circumstances no person shall be dependent on their parents even after the age of 45 years. Therefore, extending pensionary benefits irrespective of age limit shall be extended only to those dependent children of government employees/pensioners who are physically/mentally disabled. Therefore, the Committee recommends that the 11" PRC recommendation of rescinding the age limit of 45 years in respect of unmarried/ widowed/ divorced daughter i.e., 13(e) may not be accepted. 18.14 Work Charged Establishment 11" PRC Recommendation: The scales of pay of Work Charged establishment have been rationalised keeping in view the qualifications prescribed at the entry level and the service conditions. Observations/recommendations of the Committee of Secretaries: The Committee, after examination of the recommendation, proposes that the same may be accepted in toto. 18.15 Full Time Contingent Employees and Contract Employees 11" PRC Recommendation i, The Commission recommends a remuneration of %.20,000/p.m. (i.e. the minimum pay of Last Grade Employees in the proposed RPS) plus DA to the Full-time Contingent /Daily Wage! Consolidated Pay/NMR employees whose services have not been regularized and who are already drawing a remuneration of %.13,000/ p.m. + DA in the 2015 RPS. i. In respect of Contract employees also the remunerations may be fixed at the minimum of the time scale, in the now revised pay scale, of the equivalent category in regular employment in the Government. tit. The revision in remuneration in respect of these employees may be given effect to simultaneously (with effect from the same date) with the regular Government employees. Observations/recommendations of the Committee of Secretaries: The Committee, after examination of the recommendation, proposes that the same may be accepted in toto. 18.16 Home Guards 11" PRC Recommendation i. They may be paid Daily Allowance at the rate of 1/ 30th ofthe 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. 26ti The Home Guards may be allowed to draw TA/DA Constables when they are sent on banda eh eet to Pale . ba . their normal place of duty, ‘st duty (0 a place which is more than 8 kon. from Observations/recomm, i s endations of the C. it re : ‘Ommittee of Secretaries: Th i n hat the fixation of Pay of Home Guards is Not in the Ti i mea making recommendations ee Tegarding the revisioy it aa n of honorarium of the the 11" PRC has traversed beyond its jurisdiction. an Further, the Committee has observe: was only Rs. 400 per da 18.06.2018 and further in duty allowance for home Therefore, the Committ enhancement of daily dut d that the daily duty allowance to Home Guards 'y up to 2018 which was increased Rs. 600 per day w.e.f creased to Rs. 710 per day w.e.f 12.10.2019. Thus, the daily guards has already increased by 77.5% within last 2-3 years. ted is of the view that there is no case for any further ity allowance for home guards. In view of the above, the Committee recommends that the recommendation of the 11" PRC w.r.t. home guards may not be accepted. 18.17 Automatic Advancement Scheme 11" PRC Recommendation The existing scheme of AAS may continue with the following modifications: (1) The present SPP Scale II/ SAPP Scalell, eligible after 24 years of service in the same post, may be rechristened as SPP Scale ITA/SAPP ScalelIA (2) An employee, on completion of 30 years of service in a particular post, may be granted one increment in the SPP Scale ITA/ SAPP Scale IIA, as the case may be, which shall be called the Special Promotion Post Scale II-B/ Special Adhoc Promotion Post Scale II-B. (3) The benefit of Automatic Advancement Scheme may be continued up to and inclusive of Grade25 in the revised scales i.e., %.76730-162780. Observations/recommendations of the Committee of Secretaries: The Committee, after examination of the recommendation, proposes that the same may be accepted in toto. 18.18 Human Resources to Meet Contemporary Requirements of Governance 11" PRC Recommendation a. Each department should draw up a Recruitment Plan, updated on annual basis, containing details of existing vacancies in staff and officers, vacancies likely to arise ee be i retirement/ promotion etc, and phase wise recruitment to be made through or through Contract. 27In y f it Suture Contract Staff may be appointed only against positions which are tempora nature i itic bs ature and not against Permanent positions, Those ofthe qualified Contract employees, who have been appointed on merit a : i vier following transparent and competitive recruitment process, may be reqularised in Service against available vacancies in permanent posts. © Outsourci W should be only of services such as cleaning and maintenance, security! watch and ward, bill collection, managing reception desks, supply of vehicles/drivers etc. These Functions should be outsourced to Agencies on competitive tendering and in future no individual personnel should be hired on outsourcing basis. 4. Gaps in training should be identified, department wise, by a Committee constituted under the auspices of the Andhra Pradesh HRD Institute, Rapatla and budgetary support provided Sorplanning and conducting induction/ refresher training programmes for different categories of employees, General Administration (Services) Department may constitute a Committee to review, in a time bound manner, the Service Rules of all the departments in consultation with the respective Heads of Departments, While doi ing so adequate attention should be ‘given to the aspect of career planning, SF Executive staff at the field level may be provided with mobile phones with CUG. connectivity ‘o.quicken the process of decision making, problem solving and to monitor progress. & Increasing number of Government to Citizen’ (G2C) services should be brought under the umbrella of ‘Mee Seva’. Observations/recommendations of the Committee of Secretaries: The Committee recommends that the observations made by PRC on “Human Resources to Meet Contemporary Requirements of Governance” may be examined and acted upon appropriately as and when the polices are formulated concerning the same. 19. Other Recommendations of the Committee of Secretaries: The Committee further made the following recommendations. 19.1 Shifting to Central Pay Commissions i. The Government of India has historically appointed Central Pay Commissions as multi-member bodies with strong secretarial support staff. 28expertise, scholarly dge of memb. exp , knowledge embers & staff. y ‘ insightful feorieaacian ‘i po 7 nae tions, duly factoring in fin: ca aires ae intricacies while determining the fitment & other ben ft cm Sonam nefits. The recommendations of the é : Central P; issi in ay inputs & rigorous processes are ona firmer town ee ee iii, It has been observ: i i the Cental Psy ee increasingly, many States of the Union are adopting 'ission’s recommendations for their employees. In view of by several the reasons stated supra, the Committee recommends that, as is done subsequi ee States, the Government of Andhra Pradesh may also align the quent revision of pay and pensions of the employees/pensioners with that of the Central Pay Commissions. The practice of constituting State Pay Revision Commissions may be discontinued. 19.2 Village/ Ward Secretariat The Committee noted that the subject relating to pay/’ revision of the pay of Village/Ward Secretariat employees, was not under the scope of the PRC, as this category of employees did not exist at time of the constitution of the 11" PRC, that this cadre was created subsequently with consolidated pay of Rs 15,000 per month & service rules were framed for (17) of the (19) cadres. The Committee felt that as Village/Ward Secretariat employees play an important role in governance at the cutting-edge level, & though the matter relating to the pay/revision of pay of Village/Ward Secretariat employees, was not under the scope of the PRC, it would not be desirable to leave the matter unaddressed as this would lead to unwarranted anxiety among these employees. Therefore, after careful examination of the matter, the Committee considered it just Ae = recommend that the pay scales as per the service rules issued for the : —— adres of the Village/ ‘Ward Secretariat employees be confirmed as the pay scales of the concerned cadres for the purpose of the 11" PRC. Th Jarisation of the Village & ‘Ward Secretariat employees at these scales e regu would lead to an additional expenditure of around Rs 1,800 crore on an annual basis upon the State exchequer. The pay scales are aS mentioned in Table 8., Table 8: Pay for Village & Ward Secretariat Employees Scale S.No Designation 1 | Panchayat Secretary Grade V 15030-430-15460-470-16870--510- 18400-550-20050-590-21820-640- 23740-700-25840-760-28120-820- 30580-880-33220-950-36070-1030- _. fee 60 2 | Panchayat Secretary Grade VI (Digital Assistant) 3__ | Mahila Police 4 | Animal Husbandry Assistant (AHA) z Fisheries Assent | 14600-430-15460-470-16870--510- : 18400-550-20050-590-21820-640- 7_| Engineering Asst 23740-700-25840-760-28120-820- 8 _| Village Agriculture Assistant 30580-880-33220-950-36070-1030- (Gr-ID), 39160-1110-42490-1190-44870 9 | Village Horticulture Assistant 10 _| Village Sericulture Assistant 11 ‘| Village surveyor 12_ | VRO 13 | Welfare assistant 14_ | Ward Administrative 15030-430-15460-470-16870--510- Secretary 18400-550-20050-590-21820-640- 23740-700-25840-760-28120-820- 30580-880-33220-950-36070-1030- 39160-1110-42490-1190-46060 15 | Ward Amenities Secretary 16 | Ward Education & Data processing Secretary 14600-430-15460-470-16870--510- 17 | Ward Planning & Regulation 18400-550-20050-590-21820-640- Secretary 23740-700-25840-760-28120-820- 18 | Ward Sanitation & 30580-880-33220-950-36070-1030- Environment Secretary 39160-1110-42490-1190-44870 19 | Ward Welfare & Development Secretary 19.3 Cadre Rationalisation The Committee work force of the State across Departments and ali; in tune with contemporary requirements o! Departments also considered that the there is an imminent need to streamline the entire ign the existing human resources of all f the State, & the Committee has recommended to take up the following activities in a time-bound manner. a) Cadre Rationalisation-Formulatin; to all cadres, eliminating/suppressing redundant cadres & p' 30 g criteria to determine the nature of recruitment osts, and redeployingpeople currently Working in implementation of the same by all and the creation of supernumerary those cadres, Departments, inc Posts, as required. formulate guidelines for luding suppression of posts b) Study the existing system of engagin, @ policy to °) oy the existing system of compassionate appointments, evaluate its Perf formance till date, costs and benefits, and formulate a policy that meets its objective of supporting the family of deceased government employees of certain categories. 20. 11" PRC Recommendations on Public Transport Department (APSRTC) 20-1 Pay Scale: The Commission is of the view that a proper and full integration of the former APSRIC employees in the Government service, on their absorotion ik PTD cok effect from 01-01- 2020, presupposes that they have uniform pay structure and pay scales with tea Of the other remmient employees. Accordingly, the Commission recommends that the Revised Master Sea comprising of 32 Grades and 83 stages, suggested by us in Voll of this Report, be made applicable to the PTD employees also. 20.2 Assignment of equivalent Government Pay Scales: Each category of PTD employee ‘has been assigned a corresponding pay scale in RPS-2018. The Commission has olso reconmnciit that the employees drawing the 9 or 18 year Stagnation Grade pay scales in the APSRTC may be assigned the Special Grade Post Pay Scale and Special Promotion Post Scale IB/ Special Adhoe Promotion Fost Scale I-B (under the Automatic Advancement Scheme-AAS) corresponding to the RPS. 2018 scale assigned by this Commission against the basic post held by the employee in APSRTC RPS-2017. 20.3 Principle of pay fixation in RPS-2018 with effect from 01-01-2020: The Commission has recommended that the pay fixation of the PTD employees, who were in service prior to 01.07. 2018, be done in a two-step process ie, fist by fxing the pay notionally in RPS-2018 as on 01.07. 2018 and then by re,fixing the pay in RPS-2018 as on 01-01-2020, For the first step the Commission ‘has recommended a fitment benefit of 1.6% % on the Basic Pay as on 01-07-2018 in the APSRTC RPS:2017. A prescription has also been made in respec of pay fixation of employees who have joined duty in the APSRTC between 01-07-2018 and 01-01-2020. 20.4 Deamess Allowance: Deamess Allowance (D.A.) with effec from O1- 01-2020 (date of absorption) shall be the same as the Dearness Allowance fixed by the State Government for all its employees following the prescription in Chapter-7 of Vol-I of our Report. 20.5 House Rent Allowance (HRA): The same rates of HRA, as already recommended for the State Government employees in Chapter-7 of Vol-l, are recommended for application to the PTD employees also with effect from 01-01-2020. In addition, we have recommended that PTD. employees, whose work stations have been fixed at Hyderabad, Bengaluru and Chennai, shall also be eligible to draw HRA @ 30% of Basic Pay subject to a maximum of &.26,000/- per month. 31cnet Compensatory Allowance (CCA): The Commission has recommended for the PTD Stationed in diferons Mage GCA these recommended forthe exer State Government employe TD nd it different Municipal Corporation areas Separates rates have also been indicated for the PTD employees head quartered in Hyderabad, Bengaluru and Chennai Municipal Corporations, 20.7 Other Allowances, Special Pay, Perquisites and Incentives: The other Allowances, Special Pay, Perquisites and Incentives etc. have been rationalised after examining the rationale for extending such benefits. 20.8 Protection of total emoluments of PTD employees: In case, for any PTD employee the $7085 foral emoluments (sum total of Pay and Allowances), as fred on 01.01-2020 in the RPS-2018, alls shore of his/her total emoluments inthe existing APSRTC scale, such shortfall may be treated 4 Personal Pay to be absorbed in future increases in pay and allowances. 20.9 Automatic Advancement Scheme (AAS): The Commission recommends that the PTD coployecs may be extended the benefits of AAS, in liew ofthe existing Stagnation Grade Scale Scheme of APSRTC, in the following manner: 9) The benefit of AAS Scales may be given on absorption into Government Service ie 01-01- 2020, on satisfying the eligibility conditions and following the guidelines stipulated under the Scheme; 8 As in the case of other Government employees, the benefit of Automatic Advancement Scheme may be allowed up to and inclusive of Grade25 (2. 76730-162780) in the revised scales; ©) The total qualifying service in any category put in by a PTD employee ie, including the APSRTC service prior to 01-01-2020 and Government service ‘from 01-01-2020, may be counted towards determining eligibility for AAS Scales. 20.10 Other Service Benefits: All service benefits including leave benefits, advances, medical Sacilities and special benefits for Differently Abled Employees, Compassionate Appointment Scheme, Insurance Coverage under APGLI/GIS tc, which are available to the other Government employees, may be made applicable to the PTD employees also with effect from 01-01. 2020 (date of absorption). Similarly, the past regular service rendered in the APSRTC should be counted for all purposes on absorption in the Government. 20.11 Pensionary Benefits: PTD employees absorbed in Government service on OL- 01-2020, be aimee an option to either continue with EPS-95 or join the CPS, The PTD employees, who opt for CPS, will automaticaly be covered under the DCRG Scheme applicable to the echer Government employees. Incase, however, they opt to continue under EPS-95, they may be allovved ‘get the benefit under the APSRTC Gratuity formula as before. 20.12 Other Retirement Benefits: [1 is recommended that the PTD employees, who are absorbed {nto Government service on 01-01-2020, should be entitled, after their retirement, to the following other benefits on par with other Government employees: 4) Encashment of accumulated Earned Leave 4) Coverage under EHS Death Relief 32d) Medical A HMowance ©) Benefits applicable on voluntary retirement /retirement on medical grounds Observations/ Tecommendations of the Committee of Secretaries: examination of the recommendations, Proposes that the same m with the exception of those relating to fitment, HRA and CCA. In respect of the recommendations made by 11 PRC for PTD employees relating to fitment, HRA, and CCA, the Committee of Secretaries is of the view that the recommendations made by it with Tespect to fitment, HRA, and CCA for Government employees may be adopted for PTD employees as well so that there is uniformity with Government employees post the full integration of former APSRTC employees in to PTD w.e.f, 1-1-2020. The Committee, after lay be accepted in toto Further, the Committee also tecommends that the Revised Pay Scales for PTD employees (former APSRTC employees) may be implemented w.e.f. 01-01-2020. Dr. K.V.V. Satyanarayana Shashi Bhushan Kumar Shamsher Singh Rawat inci i incipal Finance Secretary e Finance (Budget) Principal Secretary (Services) Principal Finance (Mente) ar (Member) (Convenor) Ajeya Kallam Dr. Rajat Bhargava Principal Advisor to CM Special Chief Secretary, Revenue (Special Invitee) (Member) Dr. Sameer Sharma Chief Secretary to Government (Chairperson)