7th Pay Commission – Group C Employees to Lose Rs.320 – Media Calls it a Bonanza!

7th Pay Commission – Group C Employees to Lose Rs.320 – The whole of the media was & is busy in publishing as the increase in salary as 23.55%. However, the real calculation puts it to 14.29%.

The recommended pay hike for the Central Government employees by the 7th pay commission, though widely criticized by the employees have received a contrasting response by the media. Many of the media reports described it as a Bonanza for the Government employees without going into the facts or without any basic knowledge regarding the crucial calculations.

The whole of the media was & is busy in publishing as the increase in salary as 23.55%. However, the real calculation puts it to 14.29%. There is a vast difference in minimum pay between the 7th Pay Commission and its predecessor panel. However, none of the media reports reveal it.

The media is unaware of the shocking fact that once the 7th Pay Commission comes into effect from January 1, 2016, many of the government servants will actually be taking home lower salary than what they are currently drawing under the 6th Pay Commission? This would be primarily because of increase in deductions like Central Government Employees Group Insurance Scheme and National Pension Scheme.

All Central Government civil posts are categorised under the Central Civil Services Rules, 1965 into three categories- Group `A’ (including the All India Service Officers), Group `B’ and Group `C’. This classification broadly corresponds to the rank, status and the degree of the level of responsibility attached to the posts. Group `A’ posts carry higher administrative and executive responsibilities and include senior management positions in the ministries/departments and field organisations. The middle and junior levels of Group `A’ along with Group `B’ constitute middle management. Group `C’ posts perform supervisory as well as operative tasks and render clerical assistances in ministries and field organisations. As per the CPC report, close to 88% of all the employees is Group C while only 3% is Group A and 9% from Group B.

Now let us see how the 88% percent of the Central Government Employees have been deceived by the 7th pay commission.

Let us take an example of a Group C employee appointed in GP Rs.1800 on 1st August 2015, and let us assume he has been provided a government quarter.

What he would be drawing before the implementation of 7th CPC?

His basic Pay : Rs.5200 – 20200 + GP Rs.1800/- = Rs.7000/-
Add DA 125% = Rs.8750/-
HRA = NIL (Availed Government quarter)
TA = Rs.600 + DA = Rs.1350/-
Total Gross Income = Rs.17,100/-

Deductions :-

NPS 10% of basic Pay  =  Rs.700/-
CGEGIS   =  Rs.30/-
Total Deduction ; Rs.730/- (700 + 30)

Net Pay – Rs.17100 – RS.730  = Rs.16370/-

What he would be drawing after the implementation of 7th CPC?

Minimum Basic Pay  = Rs.18,000/-
HRA = NIL (Availed Government quarter)
DA = NIL
TA = Rs.1350/-

Total Gross Income = Rs.19,350/-

Deductions :-

NPS = Rs.1800/-
CGEGIS = Rs.1500/-
Total Deduction ; Rs.3300/- (1800 + 1500)

Net Pay – Rs.19350 – Rs.3300 = Rs.16050/-

Now Calculate, he was earning Rs.16,370/- before the implementation of the 7th pay commission. However, after the implementation of the 7th pay commission in its present form, he will start earning Rs.16,050/-. What Bonanza he gets?

He loses Rs.320/- ; do you call this a pay hike?

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