Estimated 7th Pay Commission pay scales as on 01.01.2016- view of gconnect

Estimated 7th Pay Commission pay scales based on the methods
adopted in 6CPC pay revision – Estimation of 7th CPC Pay in pay band and Grade
Pay as on 01.01.2016.

Even as the 7th Pay Commission was constituted recently by Government for revision of Pay and allowances of Central Government Employees, Railway Employees and Defence Personnels, wide spread speculations on projected 7th Pay Commission pay scales are already going on. Blogs that provide Central Government Employees news and information have already started estimating possible 7th CPC pay scales based on different ideas.

GConnect.in was the first site that launched 6th Pay Commission Pay, Pension and arrears Calculator which received atmost popularity among Central Government Employees and CG Pensioners.

In respect of revised Pay and allowances of 7th Pay Commission also GConnect would come up with similar pay and pension calculators.

As a precursor, we thought of estimating 7th Pay Commission pay bands and grade pays based on the same methods adopted by Govt for determining 6th CPC revised pay Scales from the pre-revised (5th CPC) pay scales

Before estimation of 7th CPC Pay Scales let us have a look at the 6th CPC Pay Bands and Grade Pay Structure

While implementing 6th Pay Commission Government decided to adopt a multiplication factor of 1.86 for most of the pre-revised pay Scales to determine the revised pay in band of an employee

The 6th CPC revised pay in pay band of an employee was determined by multiplying the pre-revised basic pay drawn as on 01.01.2006 with 1.86 ( Of course, some of the pre-revised pay scales at higher level was revised by multiplying a factor more than 1.86).

This multiplying factor 1.86 was arrived at by taking in to account following components of pre-revised pay received by an employee prior to 01.01.2006.

 

Component	Multiplication Factor
Component A – Pre-revised Basic Pay	1
Component B – Dearness Pay (50% of pre-revised Basic Pay)	0.50
Component C – 24% Dearness Allowance on pre-revised basic pay and D.P prior to 01.01.2006	0.36 (24% on factors 1+0.5 taken for B.P and D.P)
Total Multiplication Factor	1.86

Estimation of Multiplication Factor to determine 7th Pay Commission revised Pay Scales and initial pay in pay band for each pay band :

By Adopting the same method followed by the Government to decide 6th CPC multiplication factor, the following Multiplication Factor has been arrived at for determing 7th Pay Commission revised Pay Scales and initial pay in pay band for each pay band as on 01.01.2016

 

Component	Multiplication Factor
Component A and B – Pay in pay band and Grade Pay as on 01.01.2016	1
Component C – 124 % Dearness Allowance on Pay in pay band and Grade Pay (** See the Note Below)	1.24
Total Multiplication Factor	2.24

** Note : DA as on 1st January 2014 is 100%. So DA as on 1st January 2016 has been conservatively estimated to be 124 % (6% increase for each 6 months period)

As we all know, there was no uniform correlation between Grade Pay and Pay in Pay band in the 6th CPC Pay Band Structure. So the ratio between the present grade pay and starting pay in the pay band of particular grade pay group was taken as the factor to estimate the 7th CPC grade pay.

For example Ratio of 6th CPC Grade pay of Rs. 8700 to starting pay (Rs.37400) in that grade pay group is 0.2327. This factor is multiplied with 7th CPC starting pay (Rs.83780) to get the equivalent 7th CPC grade pay of Rs.19500. Wherever this factor exceeded 0.35, the same was fixed as 0.35.

@ Starting Pay is the 7th CPC starting pay in a pay band against a pre-revised Scale

@@ Entry Pay is the pay in pay band applicable to New Recruits.

The above table provides an idea on estimated 7th CPC Pay Band, Grade Pay and starting pay for each grade pay group. We have planned to launch an online tool to estimate 7th CPC pay in pay band and grade for a given 6th CPC pay in pay Band and grade pay. It will be released soon. Keep watching this site for this online tool.

Disclaimer: The above 7th CPC projected Pay bands, grade pay and starting pay are merely an estimation. The Actual 7th Pay Commission Pay Band, Grade Pay etc will be known only after implements the 7th Pay Commission’s recommendations. The pay structure given above may totally change based on various factors taken in to account by 7th Pay Commission to review the pay and allowances of Central Government Employees, Railway Employees and Defence personnels.

The following Government Orders relating to implementation of 6th Pay commission report have been referred to for the estimation of above mentioned 7th pay commission projected pay bands