3rd Pay Revision for CPSE Employees – Pay fixation examples

Entry pay of Direct Recruits in Defence Service appointed on or after 01/01/2006

3rd Pay Revision for Central Public Sector Enterprises (CPSE) Employees – Pay fixation examples

Pay Fixation Examples

1. Appointment from a Board level post to another Board level post (like appointment from Director’s post to CMD) within the same CPSE, or a different CPSE, but within the same schedule and same pay revision:

Lower Post prior to appointment Director, Schedule ‘A’ CPSE
Lower Pay Scale 180000-340000
Basic Pay (B P) in lower scale 220000/-
Higher Post after appointment CMD, Schedule ‘A’ CPSE
Higher Pay Scale of the appointed post 200000-370000
Pay fixation in the higher scale on selection as CM D
One notional increment @3% of the previous B P. 6600
Basic Pay to be fixed in the higher scale on
appointment       (Basic Pay        +     one notional increment)
2226600 (220000 + 6600)

 

2. Appointment from a Board level post to a Board level post in a different CPSE in different schedule but same pay revision:

Lower Post prior to appointment Director in Schedule ‘A’ CPSE
Lower Pay Scale 180000-340000
Basic Pay in lower scale 200000/-
Higher Post after appointment CMD in Schedule ’13’ CPSE
Scale of pay in Schedule ’13’ CPSE 180000-320000
Basic Pay as CMD Schedule ’13’ CPSE 200000/-
No change in basic pay as the scale of pay of CMD Schedule ’13’ is lower than that of Director Schedule ‘A’.
If the basic pay, which may or may not include stagnation increment, exceeds the maximum of the scale of pay the residual amount would be payable as personal pay.
This Personal Pay (PP) would be absorbed during fixation of pay in higher scale/ pay revision. PP would not be counted for any purpose including DA.

 

3. Appointment from a Board level post to a Board level post in a different CPSE in different schedule but same pay revision:

Lower Post prior to appointment CM D in Schedule ’13’ CPSE
Lower Pay Scale 180000-320000
Basic Pay in lower scale 200000/-
Higher Post after appointment CMD in Schedule ‘A’ CPSE
Pay fixation in the higher scale on selection as CM D, Schedule ‘A’ CPSE
Scale of pay in Schedule ’13’ CPSE 180000-320000
One               notional     increment                   @3%                 of   the previous BP. 26000/-
Basic Pay to be fixed in the higher scale on appointment (Basic Pay + one notional increment) 200000+6000/-= 206000/-

 

  • Appointment from a Board level post to a Board level post in a different CPSE in different nav scales of different nav revisions but same schedule:
Lower Post prior to appointment Director in 2017 pay scale, Schedule ‘A’ CPSE
Lower Pay Scale 180000-340000
Basic Pay in lower post 200000/-
Higher Post after appointment CMD in 2007 pay scale Schedule ‘A’ CPSE
Scale of pay of CMD in 2007 scale 80000-125000/-
Basic Pay Plus DA 200000 + DA = X
Maximum of the pay scale to which appointed 125000/-
Pay to be protected 125000 + DA + PP* = X
*This Personal Pay would be absorbed during fixation of pay in higher scale/ pay revision. PP would not be counted for any purpose including DA.

 

  • Appointment from a Board level post to a Board level post in different CPSE in different nav scales of different nav revisions and in different schedule:
Lower Post prior to appointment Director in 2017 pay scale, Schedule ‘B’ CPSE
Lower Pay Scale 160000-290000
Basic Pay in lower post 200000/-
Higher Post after appointment CMD in 2007 pay scale Schedule ‘A’ CPSE
Scale of pay of CMD in Schedule ‘A’ CPSE in 2007 scale 80000-125000
Basic Pay Plus DA 200000 + DA = X
Maximum of the pay scale to which appointed 125000/-
Pay to be protected 125000 + DA + PP* = X
*This Personal Pay would be absorbed during fixation of pay in higher scale/ pay revision. PP would not be counted for any purpose including DA.

 

  • Appointment from a below Board level post to a Board level post within the same CPSE or different CPSE but within the same schedule and same pav revision:
Lower Post prior to appointment Executive Di rector (E-9), Schedule ‘A’ CPSE
Lower Pay Scale 150000-300000
Basic Pay in lower post 190000/-
Higher Post after appointment CMD, Schedule ‘A’ CPSE
Higher Scale of the appointed post 200000-370000
Pay fixation in the higher scale on selection as CM D
Basic Pay in lower scale 190000
PI us one notional increment @3% 5700
Basic Pay in the higher scale on appointment      (Pay + one notional increment)

 

  • Appointment from a below Board level post to a Board level post in different CPSE in different schedules but same nav revision:
Lower Post prior to appointment General Manager (E-8), Schedule-`A’ CPSE
Lower Pay Scale 120000-280000
Basic Pay in lower scale 170000/-
Higher Post after appointment CMD in Schedule ‘C’ CPSE
Scale of pay in Schedule ‘C’ CPSE 2160000-290000
Notional increment @3% 25100
Basic Pay as CMD Schedule ‘C’ (Pay + one notional increment) 175100 (170000+5100)
  • Appointment from a below Board level post to a Board level post in different CPSE in different pay scales of different pay revisions but same schedule:
Lower Post General Manager (E-8), Schedule ‘B’ (2017)
Lower Scale prior to appointment 120000-280000
Basic Pay in lower scale 170000
Higher Post after appointment Director (Schedule B) (2007)
Higher Scale of the appointed post 65000-75000
Pay in the higher scale on selection as Director
Basic Pay in lower scale 170000
No notional increment as it is a case of dissimilar pay scales, only emoluments will be protected
Basic Pay + DA 170000 + DA= X
Maxi mum of the scale to which appointed 75000
Pay to be protected 75000 + DA + PP* =X
*This Personal Pay would be absorbed during fixation of pay in higher scale/pay revision. PP would not be counted for any purpose including DA.

 

  • Appointment from a below Board level to a Board level post in different CPSE in different pay scales of different pay revisions and in different schedule:
Lower Post prior to appointment General Manager (E-8), Schedule ‘B’ CPSE (2017)
Lower Pay Scale 120000-280000
Basic Pay in lower scale 170000
Higher Post after appointment Director, Schedule ‘A’ CPSE (2007)
Higher Scale of the appointed post 75000-100000
Pay in the higher scale on selection as Director
No notional increment as it is a case of dissimilar pay scales, only emoluments will be protected
Basic Pay + DA 170000 + DA =X
Maxi mum of the scale to which appointed 100000
Pay to be protected 100000 +DA + PP* =X
* This Personal Pay would be absorbed during fixation of pay in higher scale/pay revision. PP would not be counted for any purpose including DA.

 

  1. Employees coming from Government, for example if a Joint Secretary is appointed as CMD of a schedule ‘B’ CPSE on permanent absorption:
Joint Secretary, Gol, level 14 (7thCPC) 144200-218200
Basic Pay 200000
CMD, Schedule ‘B’ (2017 pay scale) 180000-320000
Pay fixation 200000 + DA =XBP in CMD scale of pay +DA =X. However, Basic pay would not exceed the

 

maximum of the CPSE pay scale and any residual amount would be paid as PP, which would be absorbed in fixation of pay in higher scale/pay revision. This Personal Pay would be absorbed during fixation of pay in higher scale/pay revision. PP would not be counted for any purpose including DA.

  1. Pay fixation on 2017 pav revision if increment date is 01.01.2017 in E5 Pav Scale:
Basic Pay as on 31.12.2016 40000
Scale 32900-58000
Date of increment 01.01.2017
Effective date of pay revision 01.01.2017
Pay Revision formula = Basic Pay in pre-revised scale(A) + DA (119.5%)(B) + fitment [15%/10%/5% of (A +B)]
Pay revised as on 01.01.2017= 40000+ 47800+ 13170(15%). 1,00,970/-
Annual Increment due on 01.01.2017 (3% of Revised Pay). 3029/-
Revised Pay Scale:  280000-220000/-,  BP fixed in revised Pay Scale = 104000/-(100970+23029=2103999) (Rounded off to next 10 )

 

  1. Increment can be an amount less than 3% of basic pay, and stagnation increment to be drawn once in two years after reaching maximum, and maximum three stagnation increments:
Basic Pay as on 31.12.2018 215000
Scale 80000-220000
Date of increment 01.01.2019
Next increment 3% of  215000 or (220000-2215000), whichever is less = 5000
Basic Pay after granting increment 2220000 (maximum of scale)
Next increment 3% of 220000 i.e. 6600/-
Next increment date 01.01.2021 (as stagnation increment)

 

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.

  1. Pay fixation if the amount arrived at after providing a notional increment is more than the maximum of the scale:
Lower Post prior to appointment E-8 Schedule ‘A’ CPSE
Lower Pay Scale 120000-280000
Higher Post after appointment Director in Schedule ’13’ CPSE
Higher Pay Scale of the appointed post 160000-290000
Basic Pay in the lower post 288400 (after grant  of one stagnation increment) i.e. 280000+3%  (8400) Stagnation increment
Plus one notional increment @3% 288400 +3% ( 8652) = 297060 (rounded off)
Pay to be fixed 290000 i.e. maximum of the scale

 

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 up to a maximum of three such increments provided the executives gets a performance rating of ‘Good’ or above.

  1. Benefit of bunching of pay on 2017 pay revision on pay fixation from 2007 pay scale to 2017 pay scale: The benefit of bunching, will be admissible as per Annexure I I I (A) of D PE OM dated 03.08.2017.
  2. No benefit of bunching of increment in case of CMD/MD of a CPSE from 2007 to 2017 but stepping up in specified cases: CM D/M D is a stand-alone post in a CPSE, therefore, no comparison for the purpose of benefit of bunching of increments can be made in that CPSE. However, there may be some rare cases of stepping up of pay of CM D/M D in a CPSE. To illustrate, if the Director ‘X’ of ‘Z’ CPSE who was junior to a CMD/MD of ‘Z’ CPSE, and Director ‘X’ was drawing a lower basic pay in 2007 pay scale (as on 01.01.2017) draws higher basic pay than his CM D/M D on 2017 pay revision as on 01.01.2017, (because of the reasons of getting the benefit of bunching), the pay of CMD/MD of a ‘Z’ CPSE may be stepped up to the level of that Director ‘X’ as on 01.01.2017 as under:
Pay scale of Director ‘X’ in ‘Z’ CPSE in 2007 pay scale in Schedule ‘A’ CPSE 75000100000
Pay scale of CMD in ‘Z’ CPSE in 2007 pay scale in Schedule ‘A’ CPSE 80000-125000
Basic pay of Director ‘X’ in 2007 pay scale as on 01.01.2017 98000
Basic pay of CMD in 2007 pay scale as on 01.01.2017 100000
Pay of Director in 2017 pay scale fixed after allowing the benefit of bunching (as on 01.01.2017) 255400
Pay of CMD in 2017 pay scale as on 01.01.2017 in normal case 253380
Pay of CMD with stepped up revised pay in view of Director ‘X’ of ‘Z’ CPSE, as on 01.01.2017 255400

 

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