3rd Pay Revision CPSE: Increment, Bunching of Pay, Dearness Allowance in Revised Pay Structure
(Annexure to DPE OM No. W-02/0028/2017-DPE (WC)-GL-XIII/17 dated: 3rd August, 2017)
Increment, Bunching of Pay, Dearness Allowance in Revised Pay Structure – Annexure-III
Annexure-III (A)
(Para 6)
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.
Bunching of Pay: In CPSEs where a lower fitment benefit (i.e. 10% or 5%) is granted due to affordability, there is a possibility of bunching at different grades due to revised Basic Pay falling short of reaching starting point of revised pay-scale. The revised BP due to bunching of pay in these cases would be the higher of the followings :
- Adding the difference between the ‘pre-revised Basic Pay’ and ‘the minimum of the pre-revised pay scale’ to the starting point of revised pay scale.
- The revised BP as arrived after applying the fitment benefit (ie 10% or 5% of BP plus DA).
[Example for Basic Pay revision in cases of bunching in a Grade/level]
| Sl. No | Parameters | Pre-revised pay-scale of E-6 level (in Rs.) | ||||
| Minimum/ Starting of pay- scale | Minimum + 1 increment @3% | Minimum + 2 increments @3% | Minimum + 3 increments @3% | |||
| (A) | (B) | (C) | (D) | |||
| 1 | E-6 level:Pre-revised BP | (31.12.16) | 36600 | 37700 | 38840 | 40010 |
| 2 | DA (1.1.2017) | Say:120% | 43920 | 45240 | 46608 | 48012 |
| 3 | Total | (1) + (2) | 80520 | 82940 | 85448 | 88022 |
| 4 | Fitment benefit | % of BP+DA | 5% | 5% | 5% | 5% |
| 5 | Fitment benefit amount | (4) x (3) | 4026.0 | 4147.0 | 4272.4 | 4401.1 |
| 6 | Net amount to arrive at revised BP | (3) + (5) | 84546.0 | 87087.0 | 89720.4 | 92423.1 |
| 7 | Rounded off | Next Rs.10/- | 84550 | 87090 | 89730 | 92430 |
| 8 | Minimum of E-6’s revised pay-scale | Starting point | 90000 | 90000 | 90000 | 90000 |
| 9 | Difference between the ‘pre-revised Basic Pay’ and the ‘minimum of the pre-revised pay scale’ | Linked to figure at Column (A) mentioned at SI. No.1. | (A) – (A) i.e. 36600-36600 | (B) – (A) i.e. 37700 -36600 | (C) – (A) i.e. 38840 -36600 | (D) – (A) i.e. 40010 -36600 |
| 10 | Difference amount | = | 0 | 1100 | 2240 | 3410 |
| 11. | Net of difference added to starting point of revised pay-scale | (8) +(10) | 90000 | 91100 | 92240 | 93410 |
| 12. | Revised Pay-scale | Higher of (7) or (11) | 90000 | 91100 | 92240 | 93410 |
Annexure-III (B)
(Para 7)
Rates of Dearness Allowances for the employees of CPSEs following IDA pattern
| Effective Date | Rate of Dearness Allowance (in percentage) |
| 01.01.2017 | 0 |
| 01.04.2017 | -1.1 |
| 01.07.2017 | -0.2 |
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