Who are entitled to 7th Pay Commission additional Bunching increment ?

Who are entitled to 7th Pay Commission Bunching Benefit as per Para 5.1.36 of Pay Commission report ?  The meaning of Stage defined now in the OM dated 07.09.2016

In Para 5.1.36 of its report, 7th Pay Commission had recommended that one additional increment will be given while fixing of every two stages of pre-revised basic pay (pay in pay band and Grade pay) or scale  in the same pay in the new pay matrix.  This recommendation has been accepted by Govt and an OM has been issued on 7th September 2016 to this effect.

Check the following link to read OM dated 7th September 2016 on Bunching benefits

The Govt has also defined now the meaning of “Stage” in the OM dated 7th September 2016.  Pay drawn by two Government servants in a given Pay Band and Grade pay or scale where the higher pay is at least 3% more than the lower pay shall constitute two stages.

The illustration provided in 7th Pay Commission report for the purpose of granting Bunching Increment was relating to Entry Pay only in the the new Pay Matrix viz., As per Illustration provided in the report Employees in GP 10,000 who are fitted in to minimum of Level 14 of New Pay Matrix will be eligible for one additional increment and would be fitted in to next cell of Level 14.

However, as per the OM dated 7th September 2016, which has clearly defined the meaning of Stage as far as 6th CPC pay is concerned, the bunching benefit will also be applicable to fixation of 7th CPC pay for all the indices of new pay matrix in addition to entry pay.

7th Pay Commission Pay Fixation:

As per Para 5.1.28 of 7th Pay Commission Report, pay fixation in the new pay structure will have to be made as follows

Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’.

Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.

Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level

7th Pay Commission bunching Benefit:

In addition to above, 7th Pay Commission proposes bunching benefit in Para 5.1.36 whenever more than two stages are bunched together for fixation of pay in 7th CPC pay matrix, one additional increment equal to 3 percent may be given for every two stages bunched, and pay fixed in the subsequent cell in the pay matrix.

Further, Para 5.1.37 of the report provides an illustration for fixation of pay of two employees who are drawing pay of Rs.53,000 and Rs.54,590 in the GP 10000.

As per this illustration, after applying 7CPC multiplication factor of 2.57, both of these employees will have to be fixed in first cell of level 15 in the pay of Rs.1,44,200 as their revisesd pay are worked out to Rs.1,36,210 and Rs.1,40,296 respectively which are not more than the first cell of level 15 (Rs.1,44,200)

But to avoid bunching of these two stages of pay, the person drawing pay of Rs.54,590 will get fixed in second cell of level 15 in the pay of Rs.1,48,500, while the other who is drawing pay of Rs. 53,000 will have to be fixed in Rs.1,44,200.

Based on this illustration, a table containing Entry pay of Rs. 53,000 in GP 10000, subsequent stages for this pay (pay with increment of 3% for every year) and 7th Pay Commission pay fixation for the same has been prepared as below.

Applying same principles, we could find that next stage in entry pay in respect of Grade Pay 1800, 1900. 2000, PB-3-5400, 6600, 7600 and 8900 would be entitled to one additional increment as bunching benefit.

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of 10,000/- (Pay Band (Rs. 37400-67000)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 8900/- (Pay Band 4 – Rs. 37400 to 67000)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of of Rs 7600/- (Pay Band 3 – Rs. 15600 – 39100)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 6600/- (Pay Band 3 – Rs. 15600 – 39100)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 5400/- (Pay Band 3 – Rs. 15600 – 39100)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 2400/- (Pay Band 1 – Rs. 5200 – 20200)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 2000/- (Pay Band 1 – Rs. 5200 – 20200)

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 1900/-

7th Pay Commission Pay with Bunching Benefit in respect of 6th CPC Pay in Pay band with GP of Rs. 1800/-

7th Pay Commission Report submitted – Download Report