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Benefits& Drawbacks of Pay Band and Grade Pay system introduced by 6th CPC

1
SUPPLEMENTARY MEMORANDUM SUBMITTED BY IRTSA
TO SEVENTH CENTRAL PAY COMMISSION

Chapter – 13

BENEFITS & DRAWBACKS OF PAY BAND & GRADE PAY SYSTEMINTRODUCED BY SIXTH CENTRAL PAY COMMISSION

13.1. Benefits& Drawbacks of Pay Band and Grade Pay system introduced by 6th CPC

Benefits & Drawbacks of Pay Band & Grade Pay System

  • Problem of Pay stagnation eliminated
  • Quantum of increment increases exponentially, but the difference is
    too large at higher levels.
  • Grade Pay decides the hierarchy.
  • Increase of Pay in Pay Band & Grade Pay is not uniform – in favour
    of higher scales.
  • Arbitrary adoption of formula of 40% of maximum of the merged scales
    for deciding the Grade Pay.
  • Inadequate rate on annual increment & increment during promotion.
  • Situation of senior promotes getting less pay than Junior direct
    recruits, is in violation of basic principle of Pay Band system.
i. Problem of stagnation in pay is eliminated, since pay bands are having long spans.
ii. If employees are stagnated at the maximum of any pay band for more than one year, continuously, he/she shall be placed in the immediate next higher pay band without change in the Grade Pay.
iii. Point to point fixation was facilitated by the pay band system, (with one increment in the revised pay cale for every three increments in the pre-revised scale)

  • But the employees with more years of service were placed in a disadvantageous position.
iv. Quantum of increment increases exponentially, instead of fixed rate of increment attached to every pay scale

  • But the difference became very large at higher levels – thus causing discrimination with those at middle & lower levels.
v. Grade Pay decides hierarchy / seniority of the post.

13.2. Main Draw backs of Pay Band and Grade Pay system introduced by 6th CPC

i. Increase between minimum basic pay of prerevised scale and minimum of every Revised Pay Band is not uniform. There is much greater increase in favour of PB-3 & PB-4.

ii. Arbitrary adoption of formula of 40% of maximum of the merged scales for deciding the Grade Pay – instead of progressive and proportionate rise of Grade Pay from one scale to the next.

iii. Disproportionate rise of pay after Sixth Pay commission – due to grant of disproportionate Higher Grade pays in higher scales (S-24 & above) as compared to S-4 to S-23 (Please see details in the following Table and also the table in next page)

iii. Disproportionate rise of pay after Sixth Pay commission – due to grant of disproportionate Higher Grade pays in higher scales (S-24 & above) as compared to S-4 to S-23 (Please see details in the following Table and also the table in next page)

Pay Band Minimum of V CPC scale Minimum of pay band No. of times increase of Pay after 6th CPC
1 2 3 4 (Col. 3 / 2)
S-1 2550 4440 1.74
PB-1 2750 5200 1.89
PB-2 5000 9300 1.86
PB-3 8000 15600 1.95
PB-4 14300 37400 2.62
Rise is 3 to 3.37 times at higher levels. (Please
see Table at the end of this Chapter)

iv. Rate of annual increment (3% of basic pay) is inadequate.

v. Increment on promotion (difference in grade pay + one additional increment) is inadequate.
vi. Situation of senior promotes getting less pay than Junior direct recruits, is in violation of basic principle of Pay Band system. For example,
a. A JE with five years of service while getting regular promotion from Grade Pay Rs.4200 in PB-2 to Grade Pay Rs.4600 as SSE is fixed at a Basic pay of Rs. 16120 compared to the Direct recruit’s basic pay of Rs.17140.
b. A JE with five years of service while getting promotion (through LDCE) from Grade Pay Rs.4200 in PB-2 to Grade Pay Rs.4800 as AWM/AME/AE is fixed a Basic pay of Rs. 16120 compared to the Direct recruit’s basic pay of Rs.18150.
c. Pay on Promotion should be fixed at least at par with Entry Pay in the Revised Pay Structure for direct recruits.

Table for Para 13.2.iii

DISPROPORTIONATE RISE OF PAY AFTER SIXTH PAY COMMISSION
Pay
Band		 Pay + GP V CPC minimum pay Sixth CPC Scale No. of times increase from V CPC to
VI CPC
Starting pay in Pay band Grade
Pay		 Revised Basic pay
PB-1 5200-20200+1800 2750 5200 1800 7000 2.55
PB-1 5200-20200+1900 3050 5880 1900 7780 2.55
PB-1 5200-20200+2000 3200 6060 2000 8060 2.52
PB-1 5200-20200+2400 4000 7440 2400 9840 2.46
PB-1 5200-20200+2800 4500 8370 2800 11170 2.48
PB-2 9300-34800+4200 5000 9300 4200 13500 2.70
PB-2 9300-34800+4200 5500 10230 4200 14430 2.62
PB-2 9300-34800+4200 6500 12090 4200 16290 2.51
PB-2 9300-34800+4200 6500 12090 4200 16290 2.51
PB-2 9300-34800+4600 7450 13860 4600 18460 2.48
PB-2 9300-34800+4800 7500 13950 4800 18750 2.50
PB-2 9300-34800+5400 8000 14880 5400 20280 2.54
PB-3 15600-39100+5400 8000 15600 5400 21000 2.63
PB-3 15600-39100+5400 9000 16740 5400 22140 2.46
PB-3 15600-39100+5400 9000 16740 5400 22140 2.46
PB-3 15600-39100+6600 10325 19210 6600 25810 2.50
PB-3 15600-39100+6600 10000 18600 6600 25200 2.52
PB-3 15600-39100+6600 10650 19810 6600 26410 2.48
PB-3 15600-39100+7600 12000 22320 7600 29920 2.49
PB-3 15600-39100+7600 12750 23720 7600 29920 2.35
PB-3 15600-39100+7600 12000 22320 7600 29920 2.49
PB-4 37400-67000+8700 14300 37400 8700 46100 3.22
PB-4 37400-67000+8700 15100 39690 8700 48390 3.20
PB-4 37400-67000+8900 15400 39690 8900 48590 3.16
PB-4 37400-67000+8900 16400 39690 8900 48590 2.96
PB-4 37400-67000+10000 14300 37400 10000 47400 3.31
PB-4 37400-67000+10000 18400 44700 10000 54700 2.97
HAG 67000-79000 22400 67000 2.99
HAG+ Scale 775500-80000 22400 75500 3.37
HAG+ Scale 775500-80000 24050 75500 3.14
Apex 80000 (Fixed) 26000 80000 3.08
Cab.
Sec.		 90000 (Fixed) 30000 90000 3.00

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COMMENTS

WORDPRESS: 1
  • Anonymous 10 years ago

    My husband is serving with the prasar bharati corporation and has completed 21yrs. Since last 15yrs he has not received any promotion and his pay has also not increased. After having worked for 20yrs he still draws a meagre salary of 32000 per month as he is in the administrative section whereas engineering section staff or staffs from other central govt office with 20 plus tenure draw something around 50k to 60k. Administrative staff from All India Radio have not been much affected from the hike given by 6th pay commission and i think 7th pay commission will also not change anything.

    Reply

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