What we expect from 7th Pay Commission ?

What we expect from 7th Pay Commission? – Anomalies in 6th CPC Pay Fixation policies which are to be avoided by 7th Pay Commission

Mr.M.Dorai, Deputy Director, ESIC Model Hospital, Bangalore (Ministry of Labour, Government of India, is the author of this article.

Expectations from 7th Pay CommissionHis earlier article in GConnect – “NPS is far beneficial than Government Pension’’ (Click here to read his previous article) is receiving the attention of a large number of Central Government Employees with mixed reaction.

The Central Government employees are rejoiced over the timely constitution of 7th Central Pay Commission by the Government of India. This will not only pave the way for implementing the revised pay scales promptly from 1-1-2016 but also save the government from the burden of incurring huge expenditure towards settlement of arrears.

What is very important now is, 7th Central Pay Commission must re-examine the methods adopted by 6th CPC in the matter of formulation of pay scales, pay fixation policies, fitment benefits etc. which consist of many anomalies / disparities leading to disgruntlement among central government employees.

I have touched upon some of these anomalies of 6th CPC recommendations which are quite peculiar in nature and are first of its kind in the history of Central Pay Commissions’ recommendations so far:

I – 6th CPC Broader Pay Bands has no relevance with Pay Fixation:

The 6th CPC had come out with a new concept of formulation of few broader pay bands bringing into its fold as many as 34 pre-revised pay scales / cadres which existed in the V CPC.  The pay bands from P.B 1 to P.B.4 carries common pay scales for several cadres as follows:

6th CPC Broader Pay Bands

5TH CPC Pay Scale PayBand 6TH CPC correspondingcommon Pay Band Scales No.of scales/cadres merged
S-1, S-2,S2-A.,S3 -IS 4440-7440 4
S-4 to S-8 PB-1 5200-20200 5
S-9 to S-15 PB-2 9300-34800 7
S-16 to S-23 PB-3 15600-39100 9
S-24 to S-29 PB-4 37400-67000 6
S-30 HAG 67000-79000 1
S-31 to S-32 HAG+ 75500-80000 2
S-33 Apex 80,000(Fixed) 1
S-34 Cab.Sec. 90,000(Fixed) 1

However, all the 34 pre-revised scales of the 5th CPC still distinctly exist as same number of revised pay scales even after implementation of 6th CPC, as per detailed Pay Fitment Table circulated   vide O.M No.F.No.1/1/2008-IC dated 30/8/2008  by Ministry of Finance (Click here).

The Fitment Table depicts the full list of all the Pre-revised V Pay Scale from S-1 to S-34  with its equivalent 6th CPC Pay.  Fitment Table also provides 6th CPC revised pay for each of the increment stage in pre-revised pay.

This fitment table was actually utilized by all the central government departments for fixation of pay of all the government employees who were in service as on 1/1/2006.  Needless to say, 6th CPC Broader Pay bands have no relevance here.  Even the pay of new recruits were based on entry Pay Structure under  Section II of Part A of First Schedule of CCS(Revised Pay) Rules, 2008- (Click here).

No correlation between 6th CPC Broader Pay Bands and Fitment Table:

It is could be noticed that minimum pay in Broader 6th CPC pay band applicable to a post or cadre is always lesser than the starting pay of an employee (both direct recruit and existing employee) in that post (except for P.B 4).  This is due to absence of Correlation between 6th CPC pay bands and Fitment Tables.

II. Adopting three different pay fixation methods, that create anomaly in the pay of employees who are promoted, those in service as on 1/1/2006 and those are newly recruited after 01.01.2006

Well, Fitment Tables should have been applied uniformly for employees who continue in the same post, promotees and new appointees (New Entrants)l, which is not the case here. While Fundamental Rules stipulates equal pay for equal work, pay of employees who are promoted / granted MACP are to be fixed at the stages relevant to them like Direct Recruits whose initial pay is much more than minimum pay in the pay band applicable to them. However 6th CPC has not followed same principles for Promotee employees and Direct Recruits. In fact 6th CPC has stipulated three different types of Pay fixation which was made applicable to following three cases.

The following chart incorporating the 3 different pay fixations formulated by the 6th CPC  clearly reflect the true picture of this strange situation.

Post/ Grade

FIFTH CPC

PAY SCALE

Name

of Pay

Band/

Scale

PAY IN

PAY BANDS

(APPLICABLE

FOR

PROMOTION

AFTER 1/1/2006

(With 3%

Increment)

PAY

FOR

THOSE

IN

SERVICE

AS ON

1/1/2006

As per

FITMENT

TABLE

PAYFORNEWRECRU

-ITS

NEW

ENTR-

ANTS

AFTER

1/1/2006

 

 

GRADE

PAY

for the pay

under Column (1),(2),(3)

  (1)

(2)

(3)

S-1

2550—3200

-1S

4440-7440

4750

1300

S-2

2610–3540

-1S

4440-7440

4860

1400

S-2A

2610–4000

-1S

4440-7440

4860

1600

S-3

2650-4000

-1S

4440-7440

4930

1650

S-1*

2550—3200

PB-1

4440-7440

5200

5200

1800

S-2*

2610–3540

PB-1

4440-7440

5200

1800

S-2A*

2610–4000

PB-1

4440-7440

5200

1800

S-3*

2650-4000

PB-1

4440-7440

5360

1800

S-4

2750-4400

PB-1

5200-20200

5530

1800

S-5

3050-4590

PB-1

5200-20200

5880

5830

1900

S-6

3200-4900

PB-1

5200-20200

6060

6460

2000

S-7

4000-6000

PB-1

5200-20200

7440

7510

2400

S-8

4500-7000

PB-1

5200-20200

8370

8560

2800

S-9

5000-8000

PB-2

9300-34800

9300

9300

4200

S-10

5500–9000

PB-2

9300-34800

10230

4200

S-11

6500–6900

PB-2

9300-34800

12090

4200

S-12

6500–10500

PB-2

9300-34800

12090

4200

S-13

7450-11500

PB-2

9300-34800

13860

12540

4600

S-14

7500-12000

PB-2

9300-34800

13950

13350

4800

S-15

8000–13500

PB-2

9300-34800

14880

5400

New Scale 8000–13500(Group A

PB-3

15600-39100

    15600

15600

5400

S-16

9000

PB-3

15600-39100

16740

5400

S-17

9000–9550

PB-3

15600-39100

16740

5400

S-18

10325–10975

PB-3

15600-39100

19210

6600

S-19

10000–15200

PB-3

15600-39100

18600

18750

6600

S-20

10650–15850

PB-3

15600-39100

19810

6600

S-21

12000–16500

PB-3

15600-39100

22320

21900

7600

S-22

12750–16500

PB-3

15600-39100

23720

7600

S-23

12000–18000

PB-3

15600-39100

22320

7600

S-24

14300–18300

PB-4

37400-67000

37400

37400

8700

S-25

15100–18300

PB-4

37400-67000

39690

8700

S-26

16400–20000

PB-4

37400-67000

39690

40200

8900

S-27

16400–20900

PB-4

37400-67000

39690

8900

S-28

14300–22400

PB-4

37400-67000

37400

10000

S-29

18400–22400

PB-4

37400-67000

44700

43000

10000

S-30

22400–24500

PB-4

37400-67000

51850

12000

S-31

22400–26000

HAG

75500- -80000

75500

Nil

S-32

24050-26000

HAG

75500- 80000

77765

Nil

S-33

26000 (Fixed)

Apex

80000 (Fixed)

80000

Nil

S-34

30000 (Fixed)

Cab.Secc

90000 (Fixed)

90000

Nil

*(Fitment of existing Group D employees on upgradation to Group C)

Let me illustrate in detail the methodology adopted by the 6th CPC for fixation of Pay in the above 3 categories of pay scales/posts:

(i) Employees who are promoted or granted promotion/MACP on or after 1st January 2006:

Employees who are promoted or provided with MACP after 01.01.2006 are granted with only one increment in the existing pay. Change to next Grade Pay in the hierarchy in these cases may fetch some financial benefit only if next grade pay in the grade pay hierarchy is different from the Grade Pay that is drawn before Promotion / MACP.

This is because next grade pay in the grade pay hierarchy is same certain cases. Even in the case of change of pay band on account of promotion, financial benefit is not significant since the initial pay in the pay band, except for Pay Band 4 (PB-4) is much lower than what is already drawn before promotion

Further, 6CPC pay fixation method for promoted / MACP employees, would not only create anomaly in the first promotion / MACP but also widen the gap in pay of promotee and direct recruits in subsequent promotions / MACP. This is because pay that is fixed in a particular cadre after implementation of 6th CPC continues for ever with grant of just one increment on promotion and change in grade pay and pay band if applicable. But, Direct Recruits (new appointees) in the same cadre will be getting higher pay as their entry pay would be much more than promotees who are seniors to them.

 (ii) Fixation of pay for those in service as on 01.01.2006 in 6th CPC Fitment Table:

For all the employees who were drawing pay in Vth CPC pay scales S-1 to S-23, revised 6th cpc pay is the revised pay given in the fitment tables against each pre-revised pay. In most of the cases, revised pay has been determined by multiplying 1.86 factor with pre-revised pay, since DP and DA as on 01.01.2006 was 186% of pre-revised pay. However for the cadres /posts under pre-revised V CPC Scales from S-24 to S- 34 a substantial increase in Pay was granted by the 6th CPC which was much more than the actual sum total of 1.86 factor.

 (iii) New Entrants (Direct Recruit Employees):

As far as new appointees (New Entrants) on or after 01.01.2006 are concerned, a different table as per Section II of Part A of First Schedule of CCS(Revised Pay) Rules, 2008- (Click here) is being adopted. It could be found that entry pay fixed for them is more than minimum pay in the pay band to which they belong to.

III. Vast variation in the percentage of Fitment benefits granted by 6th CPC in most of the cadres:

All the Pay Commissions upto V Pay Commission formulated new pay scale by clubbing the pre-revised Basic pay, D.A. etc. and granted some increase in the existing pre-revised basic pay which were generally in the range of  about  40 to 50% of the pre-revised basic pay(excluding D.A.) to arrive at new Basic Pay.

This hike usually  called as fitment benefit is given as a bonanza to central government employees by the CPC to satisfy the expectation of central government employees who desparately wait for a pay hike for a prolonged period of 10 years. As otherwise the new pay would be just the sum total of Pay and D.A. after merger which may not fetch any hike in the salary at all inspite of constitution of a New Pay Commission.

Deviating from the usual procedure the 6th CPC had devised an innovative method of showing such fitment benefit distinctly in the form of Grade Pay. This Grade Pay along with Pay constituted new Basic Pay.

The Grade Pay is taken into account for all purpose like H.R.A., D.A.,including pension fixation and pension benefits and thus showing it separately is of no significance. However this is not an issue. The real issue is vast variation in the fitment benefits among the low paid and high paid which I deal in the next heading below.

As can be seen from the table below, the 6th CPC did not grant even a single percent of increase in the Revised Pay (Except a meager increase in the Pay in S-1 to S-6 of P.B.1 ) The Revised 6th CPC Pay for these cadres were just the total of Pay, Dearness Pay, and D.A. as on 1/1/2006 The monetary benefit whatsoever was given in the form of Grade Pay which was arrived by taking approximately 28% to 78% of the maximum of the pre-revised V CPC Pay Scale.

Whereas the 6th CPC had not only granted a huge increase in the Pay for the scales / cadres from S-24 to S-34 but in addition, it also granted Grade Pay for the cadres from S-24 to S-30) resulting into double fitment benefits:

Post/ Grade

FIFTH

CPC

PAY

SCALE

Name

of Pay

Band/

Scale

ActualSum TotalOf PayD.P and

D.A

As on

1/1/2006

@ 1.86

Initial

Revised

pay

given

for

those

in

service

as on

1/1/2006*

Percen

tage

Of

Increase

In

Revised

Pay

GRADE

PAY

Percentage

Of

Grade

Pay

Increase

on

the

SUM

TOTAL

OF

PAY

D.P and

D.A

As on

1/1/2006

@ 1.86

Percentage

Of

Total

Increase

On the sum Total of

Pay

D.P and

D.A

As on

1/1/2006

(6+8)

1

2

3

4

5

6

7

8

9

S-1

2550—3200

-1S

4750

4750

0%

1300

27.37%

27.37%

S-2

2610–3540

-1S

4860

4860

0%

1400

28.80%

28.80%

S-2A

2610–4000

-1S

4860

4860

0%

1600

32.92%

32.92%

S-3

2650-4000

-1S

4930

4930

0%

1650

33.47%

33.47%

S-1*

2550—3200

PB-1

4750

5200

9.47%

1800

37.89%

47.36%

S-2*

2610–3540

PB-1

4860

5200

6.99%

1800

37.03%

44.02%

S-2A*

2610–4000

PB-1

4860

5200

6.99%

1800

37.03%

44.02%

S-3*

2650-4000

PB-1

4930

5360

8.72%

1800

36.51%

45.23%

S-4

2750-4400

PB-1

5120

5530

8%

1800

35.16%

43.16%

S-5

3050-4590

PB-1

5680

5880

3.52%

1900

33.45%

36.97%

S-6

3200-4900

PB-1

5960

6060

1.68%

2000

33.56%

35.24%

S-7

4000-6000

PB-1

7440

7440

0%

2400

32.26%

32.26%

S-8

4500-7000

PB-1

8370

8370

0%

2800

33.45%

33.45%

S-9

5000-8000

PB-2

9300

9300

0%

4200

45.16%

45.16%

S-10

5500–9000

PB-2

10230

10230

0%

4200

41.06

41.06%

S-11

6500–6900

PB-2

12090

12090

0%

4200

34.74%

34.74%

S-12

6500–10500

PB-2

12090

12090

0%

4200

34.74%

34.74%

S-13

7450-11500

PB-2

13860

13860

0%

4600

33.19%

33.19%

S-14

7500-12000

PB-2

13950

13950

0%

4800

34.41%

34.41%

S-15

8000–13500

PB-2

14880

14880

0%

5400

36.29%

36.29%

New Scale 8000–13500(Group A

PB-3

14880

15600

4.84%

5400

36.29%

41.13%

S-16

9000

PB-3

16740

16740

0%

5400

32.26

32.26%

S-17

9000–9550

PB-3

16740

16740

0%

5400

32.26

32.26%

S-18

10325–10975

PB-3

19210

19210

0%

6600

34.36

34.36%

S-19

10000–15200

PB-3

18600

18600

0%

6600

35.48

35.48%

S-20

10650–15850

PB-3

19810

19810

0%

6600

33.32

33.32%

S-21

12000–16500

PB-3

22320

22320

0%

7600

34.05

34.05%

S-22

12750–16500

PB-3

23720

23720

0%

7600

32.04

32.04%

S-23

12000–18000

PB-3

22320

22320

0%

7600

34.05

34.05%

S-24

14300–18300

PB-4

26600

37400

40.6%

8700

32.71

73.31%

S-25

15100–18300

PB-4

28090

39690

41.3%

8700

30.97

72.27%

S-26

16400–20000

PB-4

30510

39690

30.09%

8900

29.17

59.26%

S-27

16400–20900

PB-4

30510

39690

30.09%

8900

29.17

59.26%

S-28

14300–22400

PB-4

26600

37400

40.6%

10000

37.59

78.19%

S-29

18400–22400

PB-4

34230

44700

30.59%

10000

29.21

59.8%

S-30

22400–24500

PB-4

41670

51850

24.43%

12000

28.80

53.23%

S-31

22400–26000

HAG

41670

75500

81.19%

Nil

0%

81.19%

S-32

24050-26000

HAG

44740

77765

73.82%

Nil

0%

73.82%

S-33

26000 (Fixed)

Apex

48360

80000

65.43%

Nil

0%

65.43%

S-34

30000 (Fixed)

Cab.Secc

55800

90000

61.29%

Nil

0%

61.29%

Let me hasten to add that I do not question payment of such huge percentage of fitment benefits to certain cadres. Let them get it. Because they deserve it and so are every one. The crux of the issue is why such fitment benefits were not equally extended to all cadres in equal percentage so that there will not be any resentment among central government employees.

Conclusion:

In a nutshell, I am of the view that Pay scale pattern, pay fixation pattern, Fitment benefits method etc. adopted by the earlier pay commissions up to 5th Pay Commission were comparatively far better than that of 6th Pay Commission.

Let us hope that the above details attract the special attention of the 7th Central Pay Commission and let us expect they too realize the necessity of revision of pay without any anomalies

M.Dorai

Deputy Director

ESIC Model Hospital

Ministry of Labour, Government of India

The views expressed in this article are those of the guest author and are not intended to represent the views of GConnect.
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