HomeSeventh Pay Commission

What we expect from 7th Pay Commission? – Anomalies in 6th CPC Pay Fixation policies which are to be avoided by 7th Pay Commission

What we expect from 7th Pay Commission? – Anomalies in 6th CPC Pay Fixation policies which are to be avoided by 7th Pay Commission

Mr.M.Dorai, Deputy Director, ESIC Model Hospital, Bangalore (Ministry of Labour, Government of India, is the author of this article.

His earlier article in this site – “NPS is far beneficial than Government Pension’’ (Click here to read his previous article on GConnect) is receiving the attention of a large number of Central Government Employees with mixed reaction.
The Central Government employees are rejoiced over the timely constitution of 7th Central Pay Commission by the Government of India. This will not only pave the way for implementing the revised pay scales promptly from 1-1-2016 but also save the government from the burden of incurring huge expenditure towards settlement of arrears.
What is very important now is, 7th Central Pay Commission must re-examine the methods adopted by 6th CPC in the matter of formulation of pay scales, pay fixation policies, fitment benefits etc. which consist of many anomalies / disparities leading to disgruntlement among central government employees.

I have touched upon some of these anomalies of 6th CPC recommendations which are quite peculiar in nature and are first of its kind in the history of Central Pay Commissions’ recommendations so far:

I – 6th CPC Broader Pay Bands has no relevance with Pay Fixation:

The 6th CPC had come out with a new concept of formulation of few broader pay bands bringing into its fold as many as 34 pre-revised pay scales / cadres which existed in the V CPC. The pay bands from P.B 1 to P.B.4 carries common pay scales for several cadres as follows:

6th CPC Broader Pay Bands

5TH CPC Pay Scale Pay Band 6TH CPC corresponding common Pay Band Scales No.of scales/cadres merged
S-1, S-2,S2-A.,S3 -IS 4440-7440 4
S-4 to S-8 PB-1 5200-20200 5
S-9 to S-15 PB-2 9300-34800 7
S-16 to S-23 PB-3 15600-39100 9
S-24 to S-29 PB-4 37400-67000 6
S-30 HAG 67000-79000 1
S-31 to S-32 HAG+ 75500-80000 2
S-33 Apex 80,000(Fixed) 1
S-34 Cab.Sec. 90,000(Fixed) 1

However, all the 34 pre-revised scales of the 5th CPC still distinctly exist as same number of revised pay scales even after implementation of 6th CPC, as per detailed Pay Fitment Table circulated vide O.M No.F.No.1/1/2008-IC dated 30/8/2008 by Ministry of Finance (Click here).

The Fitment Table depicts the full list of all the Pre-revised V Pay Scale from S-1 to S-34 with its equivalent 6th CPC Pay. Fitment Table also provides 6th CPC revised pay for each of the increment stage in pre-revised pay.

This fitment table was actually utilized by all the central government departments for fixation of pay of all the government employees who were in service as on 1/1/2006. Needless to say, 6th CPC Broader Pay bands have no relevance here. Even the pay of new recruits were based on entry Pay Structure under Section II of Part A of First Schedule of CCS(Revised Pay) Rules, 2008- (Click here).

No correlation between 6th CPC Broader Pay Bands and Fitment Table:

It is could be noticed that minimum pay in Broader 6th CPC pay band applicable to a post or cadre is always lesser than the starting pay of an employee (both direct recruit and existing employee) in that post (except for P.B 4). This is due to absence of Correlation between 6th CPC pay bands and Fitment Tables.

II. Adopting three different pay fixation methods, that create anomaly in the pay of employees who are promoted, those in service as on 1/1/2006 and those are newly recruited after 01.01.2006

Well, Fitment Tables should have been applied uniformly for employees who continue in the same post, promotees and new appointees (New Entrants)l, which is not the case here. While Fundamental Rules stipulates equal pay for equal work, pay of employees who are promoted / granted MACP are to be fixed at the stages relevant to them like Direct Recruits whose initial pay is much more than minimum pay in the pay band applicable to them. However 6th CPC has not followed same principles for Promotee employees and Direct Recruits. In fact 6th CPC has stipulated three different types of Pay fixation which was made applicable to following three cases.

The following chart incorporating the 3 different pay fixations formulated by the 6th CPC clearly reflect the true picture of this strange situation.

Post/ Grade FIFTH CPC

PAY SCALE
Name

of Pay

Band/

Scale
PAY IN

PAY BANDS

(APPLICABLE

FOR

PROMOTION

AFTER
1/1/2006
(With 3%

Increment)
PAY

FOR

THOSE

IN

SERVICE

AS ON

1/1/2006

As per

FITMENT

TABLE
PAY FOR NEW
RECRUITS
NEW

ENTRANTS

AFTER

1/1/2006
GRADE

PAY

for the pay
under Column
(1),(2),(3)
  (1) (2) (3)
S-1 2550-3200 -1S 4440-7440 4750 1300
S-2 2610–3540 -1S 4440-7440 4860 1400
S-2A 2610–4000 -1S 4440-7440 4860 1600
S-3 2650-4000 -1S 4440-7440 4930 1650
S-1* 2550—3200 PB-1 4440-7440 5200 5200 1800
S-2* 2610–3540 PB-1 4440-7440 5200 1800
S-2A* 2610–4000 PB-1 4440-7440 5200 1800
S-3* 2650-4000 PB-1 4440-7440 5360 1800
S-4 2750-4400 PB-1 5200-20200 5530 1800
S-5 3050-4590 PB-1 5200-20200 5880 5830 1900
S-6 3200-4900 PB-1 5200-20200 6060 6460 2000
S-7 4000-6000 PB-1 5200-20200 7440 7510 2400
S-8 4500-7000 PB-1 5200-20200 8370 8560 2800
S-9 5000-8000 PB-2 9300-34800 9300 9300 4200
S-10 5500–9000 PB-2 9300-34800 10230 4200
S-11 6500–6900 PB-2 9300-34800 12090 4200
S-12 6500–10500 PB-2 9300-34800 12090 4200
S-13 7450-11500 PB-2 9300-34800 13860 12540 4600
S-14 7500-12000 PB-2 9300-34800 13950 13350 4800
S-15 8000–13500 PB-2 9300-34800 14880 5400
New Scale 8000–13500(Group A PB-3 15600-39100     15600 15600 5400
S-16 9000 PB-3 15600-39100 16740 5400
S-17 9000–9550 PB-3 15600-39100 16740 5400
S-18 10325–10975 PB-3 15600-39100 19210 6600
S-19 10000–15200 PB-3 15600-39100 18600 18750 6600
S-20 10650–15850 PB-3 15600-39100 19810 6600
S-21 12000–16500 PB-3 15600-39100 22320 21900 7600
S-22 12750–16500 PB-3 15600-39100 23720 7600
S-23 12000–18000 PB-3 15600-39100 22320 7600
S-24 14300–18300 PB-4 37400-67000 37400 37400 8700
S-25 15100–18300 PB-4 37400-67000 39690 8700
S-26 16400–20000 PB-4 37400-67000 39690 40200 8900
S-27 16400–20900 PB-4 37400-67000 39690 8900
S-28 14300–22400 PB-4 37400-67000 37400 10000
S-29 18400–22400 PB-4 37400-67000 44700 43000 10000
S-30 22400–24500 PB-4 37400-67000 51850 12000
S-31 22400–26000 HAG 75500- -80000 75500 Nil
S-32 24050-26000 HAG 75500- 80000 77765 Nil
S-33 26000 (Fixed) Apex 80000 (Fixed) 80000 Nil
S-34 30000 (Fixed) Cab.Secc 90000 (Fixed) 90000 Nil

*(Fitment of existing Group D employees on upgradation to Group C)

Let me illustrate in detail the methodology adopted by the 6th CPC for fixation of Pay in the above 3 categories of pay scales/posts:

(i) Employees who are promoted or granted promotion/MACP on or after 1st January 2006:

Employees who are promoted or provided with MACP after 01.01.2006 are granted with only one increment in the existing pay. Change to next Grade Pay in the hierarchy in these cases may fetch some financial benefit only if next grade pay in the grade pay hierarchy is different from the Grade Pay that is drawn before Promotion / MACP.

This is because next grade pay in the grade pay hierarchy is same certain cases. Even in the case of change of pay band on account of promotion, financial benefit is not significant since the initial pay in the pay band, except for Pay Band 4 (PB-4) is much lower than what is already drawn before promotion

Further, 6CPC pay fixation method for promoted / MACP employees, would not only create anomaly in the first promotion / MACP but also widen the gap in pay of promotee and direct recruits in subsequent promotions / MACP. This is because pay that is fixed in a particular cadre after implementation of 6th CPC continues for ever with grant of just one increment on promotion and change in grade pay and pay band if applicable. But, Direct Recruits (new appointees) in the same cadre will be getting higher pay as their entry pay would be much more than promotees who are seniors to them.

(ii) Fixation of pay for those in service as on 01.01.2006 in 6th CPC Fitment Table:

For all the employees who were drawing pay in Vth CPC pay scales S-1 to S-23, revised 6th cpc pay is the revised pay given in the fitment tables against each pre-revised pay. In most of the cases, revised pay has been determined by multiplying 1.86 factor with pre-revised pay, since DP and DA as on 01.01.2006 was 186% of pre-revised pay. However for the cadres /posts under pre-revised V CPC Scales from S-24 to S- 34 a substantial increase in Pay was granted by the 6th CPC which was much more than the actual sum total of 1.86 factor.

(iii) New Entrants (Direct Recruit Employees):

As far as new appointees (New Entrants) on or after 01.01.2006 are concerned, a different table as per Section II of Part A of First Schedule of CCS(Revised Pay) Rules, 2008- is being adopted. It could be found that entry pay fixed for them is more than minimum pay in the pay band to which they belong to.

III. Vast variation in the percentage of Fitment benefits granted by 6th CPC in most of the cadres:

All the Pay Commissions upto V Pay Commission formulated new pay scale by clubbing the pre-revised Basic pay, D.A. etc. and granted some increase in the existing pre-revised basic pay which were generally in the range of about 40 to 50% of the pre-revised basic pay(excluding D.A.) to arrive at new Basic Pay.
This hike usually called as fitment benefit is given as a bonanza to central government employees by the CPC to satisfy the expectation of central government employees who desparately wait for a pay hike for a prolonged period of 10 years. As otherwise the new pay would be just the sum total of Pay and D.A. after merger which may not fetch any hike in the salary at all inspite of constitution of a New Pay Commission.
Deviating from the usual procedure the 6th CPC had devised an innovative method of showing such fitment benefit distinctly in the form of Grade Pay. This Grade Pay along with Pay constituted new Basic Pay.
The Grade Pay is taken into account for all purpose like H.R.A., D.A.,including pension fixation and pension benefits and thus showing it separately is of no significance. However this is not an issue. The real issue is vast variation in the fitment benefits among the low paid and high paid which I deal in the next heading below.
As can be seen from the table below, the 6th CPC did not grant even a single percent of increase in the Revised Pay (Except a meager increase in the Pay in S-1 to S-6 of P.B.1 ) The Revised 6th CPC Pay for these cadres were just the total of Pay, Dearness Pay, and D.A. as on 1/1/2006 The monetary benefit whatsoever was given in the form of Grade Pay which was arrived by taking approximately 28% to 78% of the maximum of the pre-revised V CPC Pay Scale.

Whereas the 6th CPC had not only granted a huge increase in the Pay for the scales / cadres from S-24 to S-34 but in addition, it also granted Grade Pay for the cadres from S-24 to S-30) resulting into double fitment benefits:
Post/ Grade FIFTH

CPC

PAY

SCALE
Name

of Pay

Band/

Scale
Actual Sum
Total Of Pay
D.P
and
D.A

As on

1/1/2006

@ 1.86
Initial

Revised

pay
given

for

those

in

service

as on

1/1/2006*
Percentage
Of

Increase

In

Revised

Pay
GRADE
PAY
Percentage

Of
Grade

Pay

Increase

on
the

SUM

TOTAL

OF
PAY

D.P and D.A

As on

1/1/2006

@ 1.86
Percentage

Of
Total

Increase

On the sum
Total of
Pay
D.P
and D.A

As on

1/1/2006
(6+8)
1 2 3 4 5 6 7 8 9
S-1 2550—3200 -1S 4750 4750 0% 1300 27.37% 27.37%
S-2 2610–3540 -1S 4860 4860 0% 1400 28.80% 28.80%
S-2A 2610–4000 -1S 4860 4860 0% 1600 32.92% 32.92%
S-3 2650-4000 -1S 4930 4930 0% 1650 33.47% 33.47%
S-1* 2550—3200 PB-1 4750 5200 9.47% 1800 37.89% 47.36%
S-2* 2610–3540 PB-1 4860 5200 6.99% 1800 37.03% 44.02%
S-2A* 2610–4000 PB-1 4860 5200 6.99% 1800 37.03% 44.02%
S-3* 2650-4000 PB-1 4930 5360 8.72% 1800 36.51% 45.23%
S-4 2750-4400 PB-1 5120 5530 8% 1800 35.16% 43.16%
S-5 3050-4590 PB-1 5680 5880 3.52% 1900 33.45% 36.97%
S-6 3200-4900 PB-1 5960 6060 1.68% 2000 33.56% 35.24%
S-7 4000-6000 PB-1 7440 7440 0% 2400 32.26% 32.26%
S-8 4500-7000 PB-1 8370 8370 0% 2800 33.45% 33.45%
S-9 5000-8000 PB-2 9300 9300 0% 4200 45.16% 45.16%
S-10 5500–9000 PB-2 10230 10230 0% 4200 41.06 41.06%
S-11 6500–6900 PB-2 12090 12090 0% 4200 34.74% 34.74%
S-12 6500–10500 PB-2 12090 12090 0% 4200 34.74% 34.74%
S-13 7450-11500 PB-2 13860 13860 0% 4600 33.19% 33.19%
S-14 7500-12000 PB-2 13950 13950 0% 4800 34.41% 34.41%
S-15 8000–13500 PB-2 14880 14880 0% 5400 36.29% 36.29%
New Scale 8000–13500 (Group A PB-3 14880 15600 4.84% 5400 36.29% 41.13%
S-16 9000 PB-3 16740 16740 0% 5400 32.26 32.26%
S-17 9000–9550 PB-3 16740 16740 0% 5400 32.26 32.26%
S-18 10325–10975 PB-3 19210 19210 0% 6600 34.36 34.36%
S-19 10000–15200 PB-3 18600 18600 0% 6600 35.48 35.48%
S-20 10650–15850 PB-3 19810 19810 0% 6600 33.32 33.32%
S-21 12000–16500 PB-3 22320 22320 0% 7600 34.05 34.05%
S-22 12750–16500 PB-3 23720 23720 0% 7600 32.04 32.04%
S-23 12000–18000 PB-3 22320 22320 0% 7600 34.05 34.05%
S-24 14300–18300 PB-4 26600 37400 40.6% 8700 32.71 73.31%
S-25 15100–18300 PB-4 28090 39690 41.3% 8700 30.97 72.27%
S-26 16400–20000 PB-4 30510 39690 30.09% 8900 29.17 59.26%
S-27 16400–20900 PB-4 30510 39690 30.09% 8900 29.17 59.26%
S-28 14300–22400 PB-4 26600 37400 40.6% 10000 37.59 78.19%
S-29 18400–22400 PB-4 34230 44700 30.59% 10000 29.21 59.8%
S-30 22400–24500 PB-4 41670 51850 24.43% 12000 28.80 53.23%
S-31 22400–26000 HAG 41670 75500 81.19% Nil 0% 81.19%
S-32 24050-26000 HAG 44740 77765 73.82% Nil 0% 73.82%
S-33 26000 (Fixed) Apex 48360 80000 65.43% Nil 0% 65.43%
S-34 30000 (Fixed) Cab.Secc 55800 90000 61.29% Nil 0% 61.29%

Let me hasten to add that I do not question payment of such huge percentage of fitment benefits to certain cadres. Let them get it. Because they deserve it and so are every one. The crux of the issue is why such fitment benefits were not equally extended to all cadres in equal percentage so that there will not be any resentment among central government employees.

Conclusion:

In a nutshell, I am of the view that Pay scale pattern, pay fixation pattern, Fitment benefits method etc. adopted by the earlier pay commissions up to 5th Pay Commission were comparatively far better than that of 6th Pay Commission.

Let us hope that the above details attract the special attention of the 7th Central Pay Commission and let us expect they too realize the necessity of revision of pay without any anomalies

M.Dorai
Deputy Director
ESIC Model Hospital
Ministry of Labour, Government of India

The views expressed in this article are those of the guest author and are not intended to represent the views of GConnect & this website.

Stay connected with us via Facebook, Google+ or Email Subscription.

Subscribe to Central Government Employee News & Tools by Email [Click Here]
Follow us: Twitter [click here] | Facebook [click here] Google+ [click here]
Admin

COMMENTS

WORDPRESS: 0