Pay Fixation in the New Pay Structure : The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57.

The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay. If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. A couple of examples are detailed below to make the process amply clear.

The pay in the new pay matrix is to be fixed in the following manner:

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

Example I
i. For example an employee H is presently drawing Basic Pay of Rs.55,040 (Pay in the Pay Band Rs.46340 + Grade Pay Rs.8700 = Rs.55040). After multiplying Rs.55,040 with 2.57, a figure of Rs.1,41,452.80 is arrived at. This is rounded off to Rs.1,41,453.

ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.

iii. In the column for level 13, the figure closest to Rs.1,41,453 is Rs.1,41,600.

iv. Hence the pay of employee H will be fixed at Rs.1,41,600 in level 13 in the new pay matrix as shown below:

As part of its recommendations if Commission has recommended any upgradation or downgrade in the level of a particular post, the person would be placed in the level corresponding to the newly recommended grade pay.

Example II
i. Take the case of an employee T in GP 4200, drawing pay of Rs.20,000 in PB-2. The Basic Pay is Rs.24,200 (20,000+4200). If there was to be no change in T’s level the pay fixation would have been as explained in Example I above. After multiplying by 2.57, the amount fetched viz., Rs.62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at Rs.62,200.

ii. However, assuming that the Commission has recommended that the post occupied by T should be placed one level higher in GP 4600. T’s basic pay would then be Rs.24,600 (20000 + 4600). Multiplying this by 2.57 would fetch Rs.63,222.

iii. This value would have to be located in the matrix in Level 7 (the upgraded level of T).

iv. In the column for Level 7 Rs.63,222 lies between 62200 and 64100. Accordingly, the pay of T will be fixed in Level 7 at Rs.64,100.

Authority: http://7cpc.india.gov.in/

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Pay and Allowances of Central Government employees will increase one lakh crore in the current financial year and also projected to increase further due to recommendations of 7th Pay Commission.

“Salary is a big question for even profit-minded private concerns. It is therefore not surprising that the employees of service-oriented Central Government departments are so obsessed about their pays and allowances. For a few central and state government organizations that rake in huge profits, salaries and allowances to their employees is no big issue.”

A report on the spending habits of the middle class was presented in the Parliament yesterday. According to the report presented by the Minister of Finance, Arun Jaitley, “the salary given to Central Government employees in the current financial year will exceed Rs.1 lakh crore.” The amount is expected to rise further after the implementation of the recommendations of the 7th Pay Commission. This could lead to a financial crunch.

According to estimates, there could be an increase of 9.56 percent in the salary allocation for Central Government employees, to Rs.1 lakh 619 crores. In the Financial Year 2016-17, after the implementations of the 7th Pay Commission’s recommendations, it is very likely to increase to 15.79 percent and touch Rs.1.16 lakh crores. During the Financial Year 2017-18, it will further rise to Rs.1.28 lakh crores. Funds for pensioners will increase to Rs.88,521 crores this financial year. During the Financial Year 2016-17, it is expected to be 1.02 lakh crores. By the Financial Year 2017-18, it would be Rs.1.12 lakh crores.

7th Pay Commission is expected to submit its final report including the revised pay and pension structure for Central Government employees and pensioners to the Central Government on in the last week of September.

If everything goes as planned, the 7th Pay Commission recommendations will come into effect from 01.01.2016 onwards.

Meanwhile, there is no doubt in the fact that employees are extremely curious to find out how much their salaries would increase if the new Pay Commission recommendations are implemented.

Source: http://www.cgstaffnews.in/

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It is well known that Multiplication Factor 1.86 was being used by the 6th Pay Commission to calculate the new revised basic pay. The 6th Pay Commission had initially suggested 1.74, but it was later modified to 1.86.

The Multiplication Factor was arrived at by adding dearness allowance percentage to the basic pay with a simple methodology. The 6th Pay Commission also brought in a new concept called the Grade Pay. So, the basic pay diveded into two segments, which are called as Band Pay and Grade Pay.

Now that Grade Pay is not going to be included, it remains a mystery as to how the 7th Pay Commission will calculate the new Multiplication Factor.

A lot of speculations are now on about this.

With plenty of rumours afloat that salaries for Central Govt employees could increase twofold, an article was published by 90Paisa Blogrecently, which claimed that only a 30% hike in salary is sure to come. The article had used a Multiplication Factor of 2.68.

Last month, gservants.com claimed that the 7th Pay Commission may recommend a Multiplication Factor of 2.86. The website created waves when it published a projected basic pay structure by using a Multiplication Factor of 3.

The NC JCM Staff Side, in its memorandum to the 7th Pay Commission, suggested that a Multiplication Factor of 3.7 be used for calculation of new basic pay. They had also given a detailed explanation for it.

And one more, the Karnataka COC, which is an organization for Central Government employees, had demanded a Multiplication Factor of 3.85, and gave its own reasons for it.

All these are mere speculations…!

It’s up to the employees to believe what they want to.

Source: www.7thpaycommissionnews.in

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 Expected 7th Pay Commission Pay Structure for Central Government Employees :

We are providing some important information about 7th Central Pay Commission and its expected pay scale and allowances…

Proposed 7 CPC Pay Scale with Multiplication Factor by NC JCM Staff Side

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“The National Council JCM, which represents over 40 lakh Central Government employees all over India, has demanded that the minimum wages be raised to Rs.26,000 per month.”

With each passing day, new doubts and expectations keep growing in the minds of the Central Government employees, which is clearly reflected in the kind of questions that we have been receiving lately.

Members of the 7th Central Pay Commission have been touring the country for more than 10 months now.

The readers want to know when they would return to office and start drafting their report.

Will the Commission submit its report before the end of the year?

And, most importantly, will the Commission accept the NC JCM’s demand of fixing Rs.26,000 as the minimum wage?

Will 7th CPC accept NC JCM’s Demand of Rs.26,000 as the Minimum Wage?

The situation is reminiscent of a similar scene in 2006 when the NC JCM insisted the 6th Central Pay Commission that the minimum wages be raised to Rs.10,000. As per the 5th Central Pay Commission, the minimum wage at that time was Rs.2550.

At that time, many felt that the NC JCM’s request will not be granted. They said that Rs.6000 itself was an excessive amount. But the 6th Central Pay Commission fixed the amount at Rs.7000.

Now, once again similar voices of disbelief are in the air. They claim that the number is not likely to exceed Rs.16,000 this time.

The 6th Central Pay Commission did not use the methods that were used by the 5th to decide the minimum wages. It had its own process. Similarly, one cannot be sure that the 7th Central Pay Commission will follow the 6th Central Pay Commission’s method. But, it looks as if the Grade Pay Structure introduced by the 6th Pay Commission will be removed this time.

If the 7th Pay Commission chooses to implement a new pay scale formula instead of the Grade Pay Structure, then, all our “Expected Pay Structure” based forecasts will go wrong.

Source: www.employeesnews.net

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“Depending on the weightage fitment formula may range from 2.72 times to 3.72“

“The Sixth Central Pay Commission has recommended a minimum wage of Rs 6600/- per month against the demand of Rs 10,000/- per month as worked out by Staff side of JCM, Today the minimum need based wage works out to Rs 26,000/ per month.”

Minimum Wage of Rs 26,000/- Justified and Fitment formula

Comrade,
The DIRECTORATE OF ECONONMICS & STATISTICS DEPARTMENT OF AGRICULTURE & COOPERATION MINISTRY OF AGRILCULTURE GOVERNMENT OF INDIA NEW DELHI has published the RETAIL PRICES OF FOOD AND NON FOOD ITEMS VIDE http://rpms.dacnet.nic.in/ PLEASE GO THROUGH THIS IMPORTANT LINK . which contains district wise price report.

http://rpms.dacnet.nic.in/Bulletin.aspx

You can get any price of any article using the Query option.

http://rpms.dacnet.nic.in/QueryReport.aspx

The prices of many items provided by the Staff side JCM are lower than the retail prices provided by the Government agency . Hence the Minimum wage of Rs 20,000/- is justified for the erstwhile Group “D” with effect from 1/1/15 using Dr Aykroyd formula . After weightage of 25% for Group “C” it works out to Rs 26,000/- .

Please click here for Prices of Food items as on 1/1/15

Please click here for Prices of Non Food items as on 1/1/15

Please click here for Minimum Wage Caluation Sheet

The fitment formula may range from 2.72 times to 3.72 depending upon the weightage.

The Sixth Central Pay Commission has recommended a minimum wage of Rs 6600/- per month against the demand of Rs 10,000/- per month as worked out by Staff side of JCM, Today the minimum need based wage works out to Rs 26,000/ per month.

Comradely yours

(P.S. Prasad)
General Secretary

Source: www.karnatakacoc.blogspot.in

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Oral evidence submitted by National Council(JCM) Standing committee and the VII CPC on 23.03.2015, 24.03.2015 and on 31.03.2015 respectively.

The JCM(NC), JCM Constitutents including INDWF jointly prepared the memorandum on pay Structure, Pay determination, Allowances, leave, women issues, LTC, TA/DA and Retirement benefits etc., on 30.06.2014. Similarly, on behalf of INDWF, we have submitted matters relating to Defence Civilian Employees on service matters on 28.07.2014.

Defence Federations were invited from 30th to 31st march, 2015. INDWF met the VII CPC on 31.03.2015 in the VII CPC office, New Delhi from 1030 HRs to 1200 HRs.

Proposed new pay scales after removal of existing Grade Pay Rs.1900, Rs.2400, Rs.4600 and Rs.8700 in order to reduction of pay scales from 19 to 14.

PROPOSED NEW PAY SCALES MINIMUM (AFTER MERGER)

Source: INDWF

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The DA increase in January and July 2015 will play a vital role in the final numbers of the Pay Scale of 7th CPC. The estimated Pay Scales for Central Government Employees that the Seventh Pay commission can recommend for Employees working in Central Government establishments…

The Seventh Pay Commission report is expected to be released by the end of this year, and it seems that there will be no delay for the government to implement the report.

The Modi Government, being a believer in business will never want make arrear payments to the central government employees in the future and impose additional financial burden to the government.

If this is true, the seventh pay commission report will be implemented on 01/01/2016 and this news will be like a sweet melody in the ears of the central government employees.

Central government employees are also expecting the DA to be merged with their Pay. In such, along with the Implementation of the report, there will be growth in House Rent Allowance (HRA) and Educational allowance.

As on today’s date, the DA is at 107% and there arethree more DA instalments remaining before the announcement of the Seventh Pay commission. One instalment in January 2015 and the second in July 2015 and final third one Jan 2016 will be implemented.

The DA calculation will be based on the All India Consumer Price Index. Based on the data available on today’s date, the DA is expected to rise by 6% which increases the DA to 113% in this instalment. If the same trend continues, the DA is expected to have another 6% hike this July and also in Jan 2016.

Hence the pay commission will consider 124% DA before preparing the final report; this will prove to be an important number in the final calculation. If by 01.01.2016 the DA reaches 124%, then just considering the DA alone, the pay of the central government employees will be doubled.

But the pay commission considers various other factors to finalise the Pay scales. While adding those numbers, it is certain that the Pay of the central government employees may have a triple time hike. This is good news for the Central Government employees.

Now we have to see how candid does the government stay on the expectations of the central government employees. Nearly 50 lakh central government employees and Pensioners are eagerly waiting for the implementation of the Seventy Pay commission.

Our numbers state that a triple time rise in pay is sure, now it is to see how much more will the government add to these numbers.

Source: CGEN.in

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PAY SCALES PROPOSED BY THE ALL INDIA RAILWAYMEN’S FEDERATION FOR THE 7th CENTRAL PAY COMMISSION

OPERATING DEPARTMENT

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MEMORANDUM TO SEVENTH CENTRAL PAY COMMISSION GOVERNMENT OF INDIA

B.B. Mohanty
Member, Naval Heaquarters JCM Council,
Confederation of Defence Recognized Association

President
All India Naval Technical Supervisory Staff Associations.

Address: F-10/105, Kings Ville, Green City,
Ambarnath (East), Thane-421501.
Email-mohanty555@yahoo.co.in
Mob. No. 08655481087

AINTSSA/BBM-DO/31 /VII CPC

30 Jul 2014

The Member Secretary,
7th Central Pay Commission,
Post Box No. 4599,
Hauz Khas Post Office,
New Delhi-110016.

Respected Madam,

PREFACE

On behalf of All India Naval Technical Supervisory Staff Association, I welcome and wish all the success to the 7th Pay Commission in their mission of evolving pay structures and other related matters, which is expected to be fair enough for the government employees to lead a dignified life and perform their duties effectively and efficiently.

AINTSSA represents about 4000 Technical Supervisors working in Indian Navy in various Naval establishments of the Nation. They are basically from all the branches of engineering – including Civil , Mechanical , production, Electrical , Computer, Electronics & Telecom Engineering etc. They supervise and guide around 26000 workforce of Navy.

We present this memorandum to 7th CPC representing the following categories in the Indian Navy:
Around 2400 Chargeman
Around 1600 Foreman

Degree of skills, strain of work and requirement of knowledge, experience & expertise, continued & updated technical knowledge with effective training, mounting responsibility and accountability, multifaceted work contents, working condition with hazards and fatigue, mental & physical strain pertaining to these categories have been elaborately explained in the subsequent explanations.

The key to efficiency and competitive spirit in work lies not only in getting appropriate salary for the job but also with dignity & status. We welcome the provisions provided in the terms of reference. Those strategies are to be evolved in order to attract talents and retain them in service which is considered to be the need of the day in the globalised era.

Important role of these middle level managers was recognized by 3rd & 4th CPC which exclusively granted appropriate pay scales to technical supervisors based on their job contents and other factors. But it was shattered by the V & VI CPC which completely ignored their duties and responsibilities and diluted their status by seriously disturbing their relativity.

Further the fact that Naval Dockyards, NSRYs, Training centers and Ship building establishments of Indian Navy are basically technical organizations and the safe successful and efficient performance of the organizations lies primarily in the hands of their technical work forces who are supervised, trained and overseen by these technical supervisors.

7th CPC is requested to look into the serious anomalies caused especially by the Sixth CPC which have demoralized the category due to non-redressal of these anomalies – as brought out in this Memorandum. We request the Pay Commission to kindly evolve a replacement scale to the categories and ensure natural justice and dignity.

Technical Supervisors shoulder the direct responsibilities of safe, efficient & ‘Failure proof’ production, repair, maintenance and operation of almost all the systems of Naval warships of Indian Navy. Reduction of manpower in artisan staff, introduction of new ships, addition of new assets and introduction of new & modern technologies etc, have substantially added to their duties and responsibilities over the years. Other departments provide only necessary support to them in order to enable them to discharge their functions.

It is unfortunate that both 5th and 6th Pay Commissions had underestimated the significance and sensitiveness of the work-content of the technical supervisors, their responsibility and accountability. Many vital factors like their ‘Professional qualifications’ & ‘greater responsibilities’ as well as the accountability towards public safety and efficiency of the Nation went out of sight of both these Pay Commissions.

But, supporting categories like Accounts, Teachers and Nurses who were all along in the lower pay scales than the Technical Supervisors, were given up-gradation and were placed even two grades higher than Technical Supervisors. Worse and even more humiliating is the fact that the pay of categories like MCM, which work under the Technical Supervisors, were also equated with them – undermining the Supreme Court judgment of “the supervisor’s pay cannot be equal to the person being supervised”.

It is our earnest request that 7th CPC may consider the facts brought out in our memorandum. Commission is requested to remove various obstacles that come in the way of attracting talents to the technical supervisory cadre of Indian navy and in improving the efficiency of working system for which the Commission may kindly provide appropriate replacement scales for Chargemen and Foremen, which may justify the relativity of the emoluments in accordance with the job contents, working conditions, accountability & responsibilities, multi-faceted skills & critical management capacity.

I, also earnestly believe that we may be summoned for tendering oral evidence before 7th CPC in line with the earlier CPCs.

Thanking you,
yours faithfully,
(BB Mohanty)
President

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