(1)The sanction of the Panchayat shall be obtained for all proposals for fixing or altering the number, designations and grades of its officers and servants and the salaries, fees and allowances payable to them.(2)Such proposals shall be taken into consideration by the Panchayat, only at the instance of the Executive Authority or the Commissioner or the [Secretary] [Substituted for the words 'Chief Executive Officer' by Tamil Nadu Panchayats (Third Amendment) Act, 1998 (Tamil Nadu Act 28 of 1998).], as the case may be, and the Panchayat may sanction the proposal with or without modifications:Provided that no proposal adversely affecting any officer or servant of a Panchayat who has been in the permanent service of such Panchayat for more than five years and is drawing a salary of not less than five hundred rupees per mensem shall be considered except at a special meeting convened for the purpose and no such proposal shall be given effect to unless assented to by at least one-half of the members then in the Panchayat.(3)Notwithstanding anything contained in sub-sections (1) and (2), the Government in the case of Panchayat Union Councils and District Panchayats and the Inspector in the case of Village Panchayats shall have power to fix or alter the number, designations and grades of, and the salaries, fees and allowances payable to the officers and servants of any Village Panchayat or Panchayat Union Council or the District Panchayat or any class of such officers and servants and it shall not be open to the Village Panchayat or Panchayat Union Council or the District Panchayat to vary the number, designations, grades, salaries, fees or allowances as so fixed or altered except with the previous sanction of the Government in the case of Panchayat Union Councils and District Panchayats and of the Inspector in the case of Village Panchayats:[Provided that the Inspector shall observe any guidelines issued by the Government in this regard.] [Proviso added by Tamil Nadu Panchayats (Third Amendment) Act, 1998 (Tamil Nadu Act 28 of 1998).]
