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7th Pay Commission – How the Fitment Formula Spoiled – Recommendations are Detrimental to Large Section

7th Pay Commission – How the Fitment Formula Spoiled – The enhancement of pay by 14.29% is very depressing for the employees, in past after the submission of 5th and 6th Pay Commissions report, the minimum hike given was 40%.

When we go through the recommendations of the 7th Pay Commission report, it appears that it is anti to low paid employees and failed to improve their financial condition, short of suggesting measures for better and encouraging working conditions for them. It is tilted towards higher level officers.

The following important issues on which recommendations were made, show the negative approach of the commission towards low level employees, which may be due to various reasons, God only knows.

Fitment – For fixation of pay effective from 1st Jan, 2016, fitment factor of 2.57 has been proposed for application uniformly for all the employees. It includes a factor of 2.25 is on account of Dearness Allowance neutralisation, assuming that DA would be 125 percent at the time of implementation of the new scale out of 2.57 of fitment formula recommended. The hike will only be 14.29 percent.

The enhancement of pay by 14.29% is very depressing for the employees, in past after the submission of 5th and 6th Pay Commissions report the minimum hike given was 40%.

  • There has been a consistent demand to reduce gap between the lowest paid and the highest paid employees from 1:12, recommended by 6th CPC to 1:8 but instead of reducing the gap it has been further increased by the 7th Pay Commission to 1 to 14.
  • As per para 5.1.27 of the report, “it is proposed that fitment factor of 2.57 is being applied uniformly for all employees.” Whereas at Table 5 : Pay Matrix (Civilian Employees) for level 1 to 5 it is 2.57 and in respect of remaining higher levels except level 13 it ranges between 2.62 to 2.81. It proves that senior officers have been favoured by the Commission in fitment process.
  • 6th Pay Commission had recommended annual Increment between 3 to 4% of Pay plus Grade Pay whereas Seventh Pay Commission has restricted it to 3% only.
  • The 7th Pay Commission has proposed to withhold annual increments of those employees who are not able to meet the benchmark either for MACP or regular promotion within first 20 years of service, under the given condition an employee will be left with no option but to leave the job and seek retirement.

Recommendations to withdraw benefits which employees are already availing:

  1. In the name of parity in the rank of Assistants, between the field staff and headquarter staff grade pay of Rs 4,600 of Asstts of CSS has been placed in the new pay matrix in Level 6, the level corresponds to pre-revised GP of Rs 4200. Similarly the corresponding posts in the Stenographers cadre willalso follow same parity and thus will be deprive of GP of 4600.
  2. Non-functional selection scale with the GP of 4200 was granted to 30% Upper Division Clerks in CSS and Allied Offices, which is now being withdrawn at the cost of UDCs awaiting grant of NFSS.​
  3. At present two additional increments are granted at the time of promotion to Under Secy/PPS in CSS/CSSS it is suggested to abolish the benefit.

Recommendation to abolish Allowances, reduce percentage, de-link benefit of DA:

  1. The quantum of percentage based allowances has been reduced, the 6th CPC had doubled it whereas 7th Pay Commission has suggested rationalisation by a factor of 0.8 (para 8.2.3). This will reduce present percentage based allowance for example House Rent Allowance which is at present 30, 20 and 10% in respect of Class X, Y and Z category of cities will come down to 24, 16 and 8% .In the same pattern percentage of other allowances will also be reduced.
  2. All non-interest bearing Advances viz Festival etc have been abolished.
  3. Motor Car, Motor Cycle/Scooter/Moped advances have been abolished.
  4. 52 Allowances presently available to employees will discontinue.
  5. Identities of 36 allowances have been abolished as separate and proposed to be subsumed with existing or newly introduced allowances.
  6. Transport Allowance which is at present linked with DA, with release of every additional instalment of Dearness Allowance, TA is also proportionally increases, this will be done away.

Rates of contribution by various levels of employees towards insurance coverage:

Level of Employee Present Monthly Deduction​ VS Proposed Monthly Deduction:

  • 10 and above​​​Rs 120/- to ​​​​Rs 5,000/-
  • 6 to 9​​​​​Rs 60/-​​​​ to Rs 2,500/-
  • 1 to 5​​​​​Rs 30/-​​​​ to Rs 1,500/-

Disgusting – Process of Cadre Review has been made very difficult.​​​​

In short Central Government Employees are frustrated and disappointed with the major recommendations of the Commission. It is unfortunate that the employees, who were given 40% hike in their respective pay has now been recommended only 14.29%. This is unjust and humiliating for the government employees.

A Flash Back (7th September 1997)

The core group of ministers and the joint consultative machinery (JCM), which held a day-long discussion on the Pay Commission report, failed to reach a consensus on the issue of the fitment formula for the pay scales of Central government employees.

During the discussions, the JCM stuck to its stand that the pay scales at each entry point be revised by over 40 per cent of the basic pay, instead of 20 per cent as insisted upon by the government. As a compromise, the core group of ministers suggested that a fixed amount of Rs 230 could be given to all the employees. The outgo on a 20 per cent hike would amount to Rs 1,000 crore.

The JCM, however, argued that the governments formula would, in fact, decrease the take-home salaries of the employees. The formula worked out by the government would, in fact, cut down the take-home pay of the employees, JCM general secretary Umraomal Purohit told.