Impact of 7th Pay Commission Recommendations – NFIR

NFIR reviews 7th Pay Commission Recommendations on the impact of the financial implications with details of workings if implemented.

NFIR reports on the actual impact of 7th pay commission

National Federation of Indian Railwaymen discusses about the financial implications if 7th Pay Commission is implemented


National Federation of Indian Railwaymen


Affiliated to :

Indian National Trade Union Congress (INTUC)

International Transport Workers’ Federation (ITF)



Dated:  04/01/2016

The Addl: Member (Budget),

Railway Board,

New Delhi


Dear Sir,

Sub : Impact of the recommendations of 7th CPC-  reg.

Ref :  AM(B) note No. 2015-B-265  dated 23/12/2015 addressed to GS/NFIR.

With reference  to the note received  from AM(B) dated 23/12/2015 on the subject relating to the  implementation  of the  recommendations of 7th  CPC  on Railways,  the  Federation  at the outset conveys as follows:-

During  discussions  with the Hon’ble  MR and the Board (CRB,  FC,  MS) on 23rd December 2015, the NFIR  General Secretary  has expressed that there is all-round  unhappiness on 7th CPC recommendations as in many cases the ‘Take  Home Pay’  is either very marginal  or less than  what  is  received  by the  employee  now.  The  Federation  also  disputed  the estimated financial  implications  (Rs.28,500 crores)  and said that the estimated  expenditure  has been exaggerated.  It was also brought to the notice of the MR the retrograde recommendations  of 7th CPC,  while the case of Railway employees  of various categories  was not dealt adequately and the Railway  Ministry  has unfortunately  not apprised the inadequacies of Grades Pay and Pay Band of 6th CPC to the Chairman,  7th CPC.

2.    As  desired  vide  note  dated  23/12/2015,  the  Federation   furnishes  the  following  details  as Annexures to this letter.

(a) Table I   gives   the  position   of  6th   CPC   minimum   pay   in  Pay  Band   &  Grade   Pay (PB-I   to PB-3) as on 01/01/2016.

(b) Table-I  (a) explains  the 7th CPC minimum pay from Level-1 to Level-12  of the Pay Matrix . [A comparison  of Table-I  with Table-I (a)  reveals that the net benefit is marginal at Level-1, minus  at Level2.   However,  there  may be substantial  increase   from Level- 7  and above.  If Income Tax deduction  takes place, the increase will fall.]

(c) TableII  indicates  6th  CPC minimum pay in GP+  Pay Band without  HRA.

Table-II  (a)  gives 7th CPC  minimum  pay  without   HRA  (staff  in occupation   of Railway quarters are not entitled for HRA).

[A comparison  of Table-II with Table-II (a) shows minus  ‘Take  Home Pay’   for employees of Level- I  to Level-6 of Pay Matrix and equally  marginal  increase to those  in Level-7,  8 & 9 of Pay Matrix. Again  in Level-I 0 the ‘Take  Home  Pay’  will be less than the present amount. Overall position  will be either “minus” or “marginal increase”.  The Income Tax deduction would further worsen.]

(d) TableIII  shows  the  approximate  6th  CPC  pay  of  employees   after  drawal  of  10 annual increments.

Table III (a) provides  information  pertaining  to 7th CPC Pay (approx)  for Staff in Level-1 to Level-12 (Pay Matrix).

[A comparison  between Table-III and Table-III(a)  reveals that there will be marginal  increase to those in Level-I  to Level-6.  Although there will be an increase of more than 2400 to those in Level-7 to Level-12,  the Income Tax deduction  would reduce their ‘Net Take Home Pay.’

(e) Table-IV gives  position  of  6th  CPC  Pay  of  staff  (without  HRA  + 10 annual  increments – approx) as on 01/01/2016 Table-IV(a)  explains 7th CPC Pay without HRA as on 01101/2016.

[A comparison   of  Table-IV  with  Table-IV (a)  reveals  that those  in  CPC  Pay  Matrix Level-I  to Level-12  will draw minus  salary.  With Income Tax deduction,  the position  may be more worse.]


(i) In  the  case  of  employees   living  in  Railway Quarters (nearly  40%)  the  financial implications  of HRA  will be Zero.

(ii) The unfilled vacancies  are approximately  over two lakhs since the last two years.  The costs of these posts have already been saved by the Indian Railways.

Yours faithfully

(Dr. M. Raghavaiah)

General Secretary

Download NFIR No.IV/NFIR/7th CPC/CORRES (R.B.) dated  04.01.2016

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