The basic salary is expected to be increased to 15 thousand

The central government’s personnel is not likely to get a big gift from the Seventh Pay Commission. According to sources, the average increase in wages is likely to be between 15-20 percent. While the good news is that the minimum basic salary is expected to be increased to 15 thousand. Central Pay Commission personnel can determine the maximum term of 33 years. It could be a losing proposition for personnel.

According to highly placed sources Pay Commission completed the process of consultations with the stakeholders and is now trying to finalize its recommendations. Within the next two months, the Commission will submit its report to the government. India trusted the three issues have been reported on the Pay Commission has almost finished its opinion.

Between 15-20 percent the average salary increase

Pay Commission’s first attempt is that the average wage increase should be limited to between 15-20 percent. If you look at the SPC, the average salary increase was 60-70 per cent. But the seventh pay commission believes that the Sixth Pay Commission recommendations received after the spectacular rise of the increase is unlikely to be.

Maximum period of service 33 years

Secondly, it is going to pay the Commission a significant recommendation that the maximum period of service of public employees 33 years may be prescribed. Means a personnel official in 20 years to find a job, he will be retired in 53 years. For others, retirement age remains 60 years. Although most memorandum to the Pay Commission has been seeking to increase the retirement age. Personnel want the retirement age to 62 years.

The minimum basic wage of 15 thousand rupees

According to the third issue is likely to be the minimum basic pay of 15 thousand rupees. From 3050 to 7730 it was raised last Pay Commission. Now it is likely to be Rs 15 thousand.

Journey of  Basic Salary

1946- First Pay Commission had fixed basic pay 35 Rupees.
1959- Second Pay Commission is Rs.80
1973 – Third Pay Commission – Rs.260
1986 – Fourth Pay Commission – Rs.950
1996 – Fifth Pay Commission – Rs.3050

Source: geod.in

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The expected 7th CPC basic pay given below is created by comparing the previous pay commissions. This is a purely a personal view of http://www.govtempdiary.com/

Let us have a look at how the Basic Pay was determined in the previous pay commissions.

How the 2nd CPC Pay Fixation was created?

The 2nd Pay Commission was created from the 1st pay commission using a point-to point method.

Example sample table:

We have attached some samples of the 2nd Pay Commission Pay Scales & fixation Orders(1947)

How the 3rd CPC Pay Fixation formula was created?

When we study the Pay Fixation Formula of the 3^rd Pay Commission given above, we will come to know that the Basic Pay provided in the 3^rdPay Commission is the sum of the 2^nd Pay Commission’s Basic Pay, Dearness Pay, Dearness Allowance and Interim Relief and 5% of 2^nd Pay Commission’s Basic Pay. To know more about this, kindly see the Fitment Table and the Pay Fixation Order attached.

Download here fitment table–– Pay fixation orders (1st upto 6thcpc)

How the 4th CPC Pay Fixation formula was created?

When we examine the 4^th Pay Commission Pay Fixation shown above, we can understand that the Basic Pay of the 4^th Pay Commission is arrived by adding the 3^rd Pay Commission’s Basic Pay along with Dearness Allowance, Interim Relief I and II and 20 % of the 3^rd Pay Commission’s Basic Pay.

In order to know more about this, please refer to the Fitment table and Pay Fixation orders attached here.

Download here fitment table–– Pay fixation orders

Next let us see how the 5th CPC pay fixation was made?

If we study the Pay Fixation formula of the 5^thPay commission, we can find that the Basic Pay of the 5^th Pay Commission is fixed by combining the 4^th Commission Basic Pay, Dearness Allowance, Interim Relief I and II and by adding40% of the 4^th Commission’s Basic Pay. To know more about this please refer the Fitment Tableand the Pay Fixation order forms attached below.(Pay commission recommend 20% after it will be change to 40%)

Download here fitment table— Pay fixation orders

How the 6^th CPC pay fixation formed?

On what basis is the minimum Pay Band & Grade Pay created?

Pay fixation in case where pay scales have been merged e.g pre revised pay scale of Rs of 5000-8000,5500-9000 and Rs 6500-10500

If you look at the 6th Pay Commission Pay Fixation formula, we can find a difference in that the Basic Pay is divided in to two as to Pay Band and Grade Pay. Based on this, the Pay Band is arrived by summing up the 5th Pay Commission Basic Pay, Dearness Pay and Dearness Allowance (1.86 Multiple Factor). 40% of the Maximum of pre revised Pay Scale of the 5th Pay Commission is added to the Grade Pay that is paid as usual and the Grade Pay is determined.

Download here 6th cpc fitment table-

Click here to learn how the Pay Band and Grade Pay came into practice.

If you look at the timetable above, a fact becomes clear. The Basic Pay in every new pay commission is derived by combining the Basic Pay from the previous pay commission and additional benefits like DA, Interim Relief I and II, and DP. Along with this a percentage is taken from the old Basic Pay and added to the above sum and given as new Basic Pay.

In the 6th Pay Commission alone, the total sum (that is got by adding) is given as Pay Band and a percentage from the usually paid additional amount is given as Grade Pay. Based on the above Pay Commissions,(3rd CPC 5%,4th CPC 20%,5th cpc,40%,6th cpc 40% Exiting maximum pre -revised pay scale) approximately 50% has been added from the previous Basic Pay along with the Basic Pay and Dearness Allowance and the formula for the 7th Pay Commission Pay fixation projected thus arrived is given below

Pay Band and Grade Pay are not shown separately

A certain percentage of the amount which is paid additionally is not same for all the scales. For some scales it is more and so favourable. That is why they have created the 7th CPC projector pay calculator in three different varieties.

Source: http://www.govtempdiary.com/

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The government on Wednesday decided to finally announce the Seventh Pay Commission for central government employees and pensioners.

“Prime Minister Manmohan Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016″, Finance Minister P Chidambaram said in a statement.

The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, comes ahead of the Assembly elections in 5 states in November and the general elections next year.

The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.

As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from January 1, 2016, Chidambaram said.

The sixth Pay Commission was implemented from January 1, 2006, fifth from January 1, 1996 and fourth from January 1, 1986.

The names of the chairperson and members of the 7th Pay Commission and its terms of reference will be finalised shortly after consultation with major stakeholders, Chidambaram said.

Last week, the Union Cabinet had approved a proposal to hike dearness allowance to 90 percent from existing 80 percent.

The increase in DA to 90 percent would result in additional annual expenditure of Rs 10,879 crore.

There would be additional burden of Rs 6,297 crore on exchequer during 2013-14 on account of this hike in DA.
With PTI inputs

Source: Zeenews
http://zeenews.india.com/business/news/economy/seventh-pay-commission-for-central-govt-employees-announced_85279.html

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The Finance Minister Shri P.Chidambaram in a statement said here today that the Prime Minister has approved the constitution of the Seventh Central Pay Commission.

The fourth, fifth and sixth Central Pay Commissions’ recommendations were implemented as follows:

The average time taken by a Pay Commission to submit its recommendations has been about two years. Accordingly, allowing about two years for the 7th CPC to submit its report, the recommendations are likely to be implemented with effect from 1.1.2016.

The names of the Chairperson and members as well as the terms of reference (ToR) of the 7th Pay Commission will be finalised and announced shortly after consultation with major stakeholders.

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DSM/MJPS/KA
(Release ID :99644)

Source: PTI

The post Prime Minister Approves the Constitution of Seventh Central Pay Commission; Recommendations are Likely to be implemented with effect from 1st January, 2016 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.