3rd Pay Revision for CPSE Employees – Increment, Bunching and Dearness Allowance in the revised Pay

3rd Pay Revision for CPSE Employees – Increment, Bunching and Dearness Allowance in the revised Pay

(Annexure to DPE OM No. W-02/0028/2017-DPE (WC)-GL-XIII/17 dated: 3rd August, 2017)

Increment, Bunching of Pay, Dearness Allowance in Revised Pay Structure – Annexure-III

Annexure-III (A)
(Para 6)

Stagnation Increment: In case of reaching the end point of pay scale, an executive would be allowed to draw stagnation increment, one after every two years upto a maximum of three such increments provided the executives gets a performance rating of ‘Good’ or above.

Bunching of Pay: – In CPSEs where a lower fitment benefit (i.e. 10% or 5%) is granted due to affordability, there is a possibility of bunching at different grades due to revised Basic Pay falling short of reaching starting point of revised pay-scale. The revised BP due to bunching of pay in these cases would be the higher of the followings –

• Adding the difference between the ‘pre-revised Basic Pay’ and ‘the minimum of the pre-revised pay scale’ to the starting point of revised pay scale.
• The revised BP as arrived after applying the fitment benefit (ie 10% or 5% of BP plus DA).

[Example for Basic Pay revision in cases of bunching in a Grade/level]