News and information for Government Employees

News and information for Government Employees
“We are only as strong as we are united, as weak as we are divided.”

Thursday, 19 November 2015

New 7th Pay Commission Pay Structure, Pay fixation method and fitment Formula – Grade Pay system dispensed with and new pay model by merging the existing grade pay inroduced

7th Pay Commission has evolved a new pay structure by merging the existing grade pay with pay in pay band. Therefore Grade Pay systema and pay band Structure is dispensed with.

7th pay commission also mentioned that since grade pay computation by 6th CPC varied greatly it is dispensed with.
New functional level pay model have been proposed by merging the grade pay with the pay in the pay band. All of the existing levels have been subsumed in the new structure; no new level has been introduced nor has any existing level been dispensed with.
The Commission has designed the new pay matrix keeping in view the vast opportunities that have opened up outside government over the last three decades, generating greater competition for human resources and the need to attract and retain the best available talent in government services. The nomenclature being used in the new pay matrix assigns levels in place of erstwhile grade pay and Table 3 below brings out the new dispensation for various grades pay pertaining to Civil, Defence and MNS.
7th Pay Commission has formulated fitment formula which varies from 2.57 to 2.78 depending on the 6th CPC pay band and grade pay. For instance, 7CPC pay of the employees who are presently in the pay band of 5200 – 20200 with grade pay of Rs. 1800, will be calculated by multiplying the factor of 2.57 with their existing basic pay (pay in pay band + grade pay)
Grade pay and pay band wise fitment formula is as follows
Pay Band 1(5200- 20200)
Grade Pay18001900200024002800
Current Entry Pay700077308460991011360
Rationalised Entry Pay (2.57)7000*(2.57)
=18000
7730*(2.57)
=19900
8460*(2.57)
=21700
9910*(2.57)
=25500
11360*(2.57)
=29200
Pay Band 2(9300-34800)
Grade Pay4200460048005400
Current Entry Pay13500171401815020280^
Rationalised
Entry Pay
(2.62)
13500*(2.62)
=35400
17140*(2.62)
=44900
18150*(2.62)
=47600
20280*(2.62)
=53100
Pay Band 3(15600-39100)
Grade Pay540066007600
Current Entry Pay210002535029500
Rationalised
Entry Pay
(2.67)
21000*(2.67)
=56100
25350*(2.67)
=67700
29500*(2.67)
=78800
Pay Band 4(37400-67000)
Grade Pay8700890010000
Current Entry Pay461004910053000
Rationalised
Entry Pay
(2.57/2.67/2.72)
46100*(2.57)
=118500
49100*(2.67)
=131100
53000*(2.72)
=144200
HAG(67000-79000)
Current Entry Pay67000
Rationalised
Entry Pay (2.72)
67000*(2.72)
=182200
HAG+(75500-80000)
Current Entry Pay75500
Rationalised
Entry Pay (2.72)
75500 *(2.72)
=205400
Apex80000 (fixed)
Rationalised Pay
(2.81)
80000*2.81
=225000
Cabinet Secretary90000 (fixed)
Rationalised Pay
(2.78)
90000*2.78
=250000
The pay matrix comprises two dimensions. It has a “horizontal range” in which each level corresponds to a ‘functional role in the hierarchy’ and has been assigned the numbers 1, 2, and 3 and so on till 18.
The “vertical range” for each level denotes ‘pay progression’ within that level. These indicate the steps of annual financial progression of three percent within each level. The starting point of the matrix is the minimum paywhich has been arrived based on 15th ILC norms or the Aykroyd formula. This has already been explained in Chapter
4.2 of the 7th Pay Commission report.
On recruitment, an employee joins at a particular level and progresses within the level as per the vertical range. The movement is usually on an annual basis, based on annual increments till the time of their next promotion.
When the employee receives a promotion or a non-functional financial upgrade, he/she progresses one level ahead on the horizontal range.
The pay matrix will help chart out the likely path of pay progression along the career ladder of any employee. For example, it can be clearly made out that an employee who does not have any promotional prospects in his cadre will be able to traverse through at least three levels solely by means of assured financial progression or MACP, assuming a career span of 30 years or more.
The new pay matrix for civilian employees is brought out in Table 5 of the pay commission report.

Minimum Pay

The JCM-Staff Side, in their memorandum, have proposed that the minimum salary, at the lowest level, should be determined using a need based approach. They have proposed that the minimum wage for a single worker be based on the norms set by the 15th Indian Labour Conference,  with  certain  additions  to  the  same.  The minimum  pay as  suggested  in  the memorandum is ₹26,000, which is around 3.7 times the existing minimum salary of ₹7,000. While the broad approach is similar, the specifics do vary and the Commission has, based on need-based minimum wage for a single worker with family as defined in the Aykroyd formula, computed theminimum pay at ₹18,000. Details on the computation of minimum pay have been brought out in Chapter 4.2.

Fitment

The starting point for the first level of the matrix has been set at  ₹18,000. This corresponds to the starting payof ₹7,000, which is the beginning of PB-1 viz., ₹5,200 + GP 1800, which prevailed on 01.01.2006, the date of implementation of the VI CPC recommendations. Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006.
This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent.

Pay Fixation in the New Pay Structure

The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57.
The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay.
If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. A couple of examples are detailed below to make the process amply clear.
The pay in the new pay matrix is to be fixed in the following manner:
Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’.
Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.
Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level.

7th CPC : Report submitted - Highlights


The Seventh Pay Commission headed by Justice A K Mathur submitted its report to Finance Minister Arun Jaitley on Thursday and recommended a 16 per cent hike in the pay of 50 lakh central government employees. 


  • Minimum pay will be Rs. 18,000/-
  • Pay Bands and Grade Pay has been dispensed
  • Pay matrix with distinct Pay Levels to replace Pay Bands and Grade Pay
  • To get the new pay Basic Pay, you have to multiply the total of pay in Pay Band + Gade pay with the factor of (2.57/2.67/2.72)
  • HRA will be revised to 27 percent, 18 percent and 9 percent
  • Transport Allowance hiked by a factor of 2.25
  • Children Education Allowance and Hostel Subsidy hiked by a factor of 1.5
  • Only 80% salary during the second year of the Child Care Leave
  • Recommends health insurance scheme for Central Government employees and pensioners
  • OROP for Civilian also

Wednesday, 18 November 2015

Official Announcement by 7th PAY COMMISSION to submit report on November 19

It’s official now! 7th Pay Commission in its official website has published the announcement that it would be submitting its report on 19th November 2015 at 19.30 hrs.

***********
The 7th Pay Commission, under the chairmanship of Justice A.K.Mathur, will submit its 900-page report to the centre tomorrow at 19.30 Hrs.

A review of the 7th Central Pay Commission :-

25.09.2013 – P. Chidambaram, the then Minister of Finance, made headlines when he announced the proposal to constitute the 7th Pay Commission.

04.02.2014 – The then Prime Minister, Manmohan Singh gave approval for constituting the 7th Pay Commission. Under the chairmanship of Justice A.K.Mathur, a four-member Pay Commission committee was formed (1. Justice Ashok Kumar Mathur, Chairman; 2. Vivek Rae, Member; 3. Dr. Rathin Roy, Member; and 4. Mrs. Meena Agarwal, Secretary).

28.02.2014 – The Terms of Reference were issued to the Pay Commission, with the approval of the cabinet.

The Pay Commission was given 18 months time to complete its work. This time around, the commission managed to effectively complete its task, almost on time.

The Pay Commission visited various places in the country to personally inspect the work conditions and gather feedback from the workers associations and representatives.

Opinions were invited from all, and not just the NC JCM Staff Side, Confederations and major employees unions and associations.

The Pay Commission hosted its own website where it regularly updated its progress.

In a section called “Questionnaire,” the commission asked questions to the visitors and gathered online feedback from them.

19.05.2014 - GEF submit Suggestions and answers  on the 7th CPC questionnaires  asked by 7th CPC  for through Public Notice
 
04.02.2015 - A delegation  of Government Employees Federation met the 7th Central Pay Commission at Megadode Resort, Port Blair  at 2.30 p.m and has submitted a Memorandum with POWER POINT presentation before the Commission and discussed  on 41 Points Common demands of entire Government servants, along with Department-wise demands of 19 Departments of A&N Administration including one Central Govt. Department of ALHW  and representations submitted by 27  affiliated  service associations  before the Chairman, 7th CPC. The President Shri. P.Kannan & General Secretary  Shri. S.K.Majumdar have jointly presented justifications of the demands placed.

24.06.2014 – the NC JCM Staff Side presented a Memorandum to the Pay Commission, containing the suggestions and proposed pay structure of nearly 45 lakh employees and also such demands for 50 lakh pensioners.

25.06.2015 – The Pay Commission made an important announcement on its website. It said that task on the report will end very soon and it will be submitted to the government on time.

The report, which was supposed to be submitted in August, was delayed when the Pay Commission, on 27.08.2015, asked for an extension of four months to complete its report.

The OROP protests and Bihar polls are believed to be the reasons for submitting the report much ahead of December. Initially, the Pay Commission was expected to submit its report on November 20 or 23. But, PTI announced yesterday that the report will be submitted on November 19.

And Today the official website of 7th CPC also published the date and time of submission of its report to the Central Government.

Experts and various sources expect 15 to 20 percent hike in the salaries. But, none has explained the basis on which the numbers were arrived at.

The employees are not just curious about the salary hikes. They are interested in other aspects, including Promotions, Retirement Age, DA merger, Increment, Grade Pay, HRA, Bonus, LTC, and the removal of certain pay anomalies of the 6th Pay Commission are some of the expectations.

 Let’s keep our fingers crossed and wait for the report.

courtesy : CGEN