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Saturday, July 11, 2015

Yearly Increment for Central Government Employees from July 2015…

with 5 comments
Yearly Increment for Central Government Employees from July 2015…

As we are in the last six months for the implementation of 7th Central Pay Commission, let us look at the calculation of yearly increment implemented in the 6th CPC.

The 6th Central Pay Commission which came in to effect from January 2006 and fully implemented with allowances like HRA, CCA, etc., from August 2008, presented a totally different look when compared to previous pay commissions. There were different types of decisions, ideas, information and recommendations in it.

The main change was that, it brought a new type of Pay Scales namely Pay in the Pay Band and Grade Pay. In order to maintain records and for easy calculation, the 6th CPC had fixed a common date for the yearly increment irrespective of their appointment date. In the previous pay commissions, the increment was given to an employee on his/her appointment month. For example, if an employee was appointed in the month of January, his/her increment month will be in the same month every year. But the 6th CPC recommended a common date and the month of July every year was fixed as the increment month for all Central Government Employees. This decision was widely appreciated by everyone. A point in the 6th CPC says that, ‘If an employee has completed six months or more in the revised pay structure as per 6th CPC, as on 1st July, he/she will be given one increment…’

In the 5th CPC, an employee’s pay is fixed in the Scale of Pay. If that individual’s scale of pay is – 3050-75-3950-80-4590, he/she gets yearly increment of Rs.75/- up to Rs.3950/- and Rs. 80/- from Rs.4590/-… If the employee reaches maximum of his pay scale, there is no further increment and get stagnated there. There were such instances of employees with no increment for three to four years.

Whereas in the 6th CPC, to remove stagnation, the commission introduced the running pay bands for all posts. If an employee reaches maximum of his pay band, after one year he will be placed in the next pay band providing him one increment. Thus, he/she moves up to the next pay band. It was a good recommendation as far as employees are concerned.

The 6th CPC also recommended that the yearly increment should not be fixed as in 5th CPC, but 3% of the employee’s basic pay should be calculated and added to the basic pay. The increment so calculated, should be rounded off to the next multiple of 10, ignoring the paise, and added to the pay band. For example, if the amount of increment comes to Rs. 1500.80, then the amount will be rounded off to Rs. 1500/- and if the amount comes to Rs. 1501.00, then it will be rounded off to Rs.1510/-.

As of now, no one can predict what will be the recommendations in the 7th CPC…The Commission in its website, said that it had stopped all type of interactions, meetings etc. and it is ready to submit its report to the Central Government in September 2015…

Will the 7th CPC continue the same formulae adopted by the 6th CPC, or it brings any changes in to it…!

Let’s all hope for the best……!

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5 comments:

Ashok Kr Thakur said...

We the Rly employee cannot hope better from
This govt.as it was hoped earlier at least increase in the Yearly tax exampted amount but new govt required more collection fromRly employee to make his india.Rly employees gives services 12 month in a year and gets salary for 10 months only due to tax deduction in ayear.so better hope from mdi govt is worthless.

Lakshmanrao seshagiri said...

Uniform date of implementation of seventh pay commission will be based on the accepted portion of Seventh pay commission by means of O.M from the concerned Ministries...

Lakshmanrao seshagiri said...

Let us wait for the Accepted portion of the seventh pay commission by means of Orders issued by the competent authorities with date of effect.

vaman deshpande said...

I have retired from AG office Bengaluru on 31-5-2013.If one increment had to be added after putting in 6 months service as per 6th CPC recommendations,shall I be entitled for another increment so as to determine my pension since I had put 11 months without any increment before retirement after the last increment was granted on 1-7-2012?
.....VBDeshpande

mukesh burnwal said...

I am college teacher in Delhi University. University opened on 20th July. I had came in college so many times in July for official duty and I signed there. but on 20th I was on Earned Leave and availed LTC. will I entitled for annual increment which is considered from 1st July every year.



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