7th CPC Gazette Notification- Pay Fixation in revised pay structure

Sl.No

Recommendation of the Seventh Central Pay Commission

Decision of the Government

7^th pay Commission Recommendation High Light Para

1

Minimum pay in government with effect from 01.01.2016 at Rs. 18000 per month

(Para 4.2.13 of the Report)

Accepted

4.2.13 After considering all relevant factors the Commission is of the view that the minimum pay in government recommended at ₹18,000 per month, w.e.f. 01.01.2016, is fair and reasonable and one which, along with other allowances and facilities, would ensure a decent standard of living for the lowest ranked employee in the Central Government

2

Pay Matrix comprising two dimensions having horizontal range in which each level corresponds to a “functional role in the hierarchy” with number assigned 1, 2, 3 and so on till 18 and “vertical range” denoting “pay progression”. These indicate the steps of annual financial progression

(Para 5.1.21 of the Report)

Accepted

5.1.21 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 pay which has been arrived based on 15th ILC norms or the Aykroyd formula. This has already been explained in Chapter 4.2

3

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.

(Para 5.1.22 of the Report)

Accepted

5.1.22 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

4

The fitment factor of 2.57 to be applied uniformly for all employees.

(Para 5.1.27 of the Report)

Accepted

5.1.27 The starting point for the first level of the matrix has been set at ₹18,000. This corresponds to the starting pay of ₹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 neutralization, 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.

5

Pay of employees to be fixed in the revised Pay Structure in the manner laid down in Paras 5.1.28 and 5.1.29 of the Report.

Accepted

5.1.28 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.

5.1.29 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.

Example I

i. For example an employee H is presently drawing Basic Pay of ₹55,040 (Pay in the Pay Band ₹46340 + Grade Pay ₹8700 = ₹55040). After multiplying ₹55,040 with 2.57, a figure of ₹1,41,452.80 is arrived at. This is rounded off to ₹1,41,453.

ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.

iii. In the column for level 13, the figure closest to ₹1,41,453 is ₹1,41,600.

iv. Hence the pay of employee H will be fixed at ₹1,41,600 in level 13 in the new pay matrix as shown below:

Table 6: Pay Fixation

6

In case of upgrading of posts recommended by the Commission, the pay may be fixed in revised Pay Structure in manner laid down in

Para 5.1.30 of the Report.

Accepted. The recommendation regarding downgrading not accepted and, therefore, no occasion for fixation on downgrading of posts.

5.1.30 As part of its recommendations if Commission has recommended any upgradation or downgrade in the level of a particular post, the person would be placed in the level corresponding to the newly recommended grade pay.

Example II

i. Take the case of an employee T in GP 4200, drawing pay of ₹20,000 in PB-2. The Basic Pay is ₹24,200 (20,000+4200). If there was to be no change in T’s level the pay fixation would have been as explained in Example I above. After multiplying by 2.57, the amount fetched viz., ₹62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at ₹62,200.

ii. However, assuming that the Commission has recommended that the post occupied by T should be placed one level higher in GP 4600. T’s basic pay would then be ₹24,600 (20000 + 4600). Multiplying this by 2.57 would fetch ₹63,222.

iii. This value would have to be located in the matrix in Level 7 (the upgraded level of T).

iv. In the column for Level 7 ₹63,222 lies between 62200 and 64100. Accordingly, the pay of T will be fixed in Level 7 at ₹64,100.

7

Pay of direct recruits will start at the minimum pay corresponding to the Level to which recruitment is made, which will be the first cell of each Level in the Matrix (Para 5.1.32 of the Report)

Accepted

5.1.32 In the new pay matrix, it is proposed that direct recruits start at the minimum pay corresponding to the level to which recruitment is made, which will be the first cell of each level. For example a person entering service as a direct recruit at level 3 will get a pay of ₹21,700, at level 8 of ₹47,600, at level 10 of ₹56,100 and so on

8

On promotion, pay of employees to be fixed in the manner laid down in

Para 5.1.33 of the Report.

Accepted

5.1.33 For those who have been promoted from the previous level, the fixation of pay in the new level will depend on the pay they were already drawing in the previous level. For instance, if a person who was drawing ₹26,000 in level 3 gets a promotion to level 4, his pay fixation will be as shown in Table 7:

Table 7: Entry Pay

Step 1: After grant of one increment in level 3 the pay increases to ₹26,800 in level 3 itself.

Step 2: Locate the equal or next higher amount in level 4 which in this case will be ₹27,100. Hence the new pay on promotion from level level 3 to level 4 will be fixed at ₹27,100.