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30% salary hike confirmed in 7th Pay Commission for CG Employees

30% salary hike confirmed in 7th Pay Commission for CG Employees

"The wages of public sector bank employees are revised once every five years. The recent 10th Bipartite wage agreement gave them an increase of 15%."

United Forum of Bank Unions (UFBU) had initially put forth a demand of 21% wage hike. It was only after an extensive series of negotiations that the Indian Bank Association agreed to settle for 15%.

For Central Government Employees, once every ten years, a high level committee is constituted by Central Government to revise the pay and allowances. The commission will examine pay structure, concessions and facilities/benefits as well as retirement benefits of Central Staff based on Terms of reference given to them. The Commission has to  submit its recommendations within 18 months of the date of its constitution.

All the employees' Trade unions, Associations and Federations are given a chance to meet the committee and present their demands and expectations in the form of memorandums. All these stages have been completed. The pay commission is expected to submit its report to the central government this month. 

The prime question which comes naturally in every one's mind is - how much increase the Central Government employees will get? 

In our point of view, all Central employees can surely get a uniform 30% increase in salaries with effect from 01.01.2016, irrespective of ranks and length of service

Let us assume that an employee who had been recruited after the implementation of the 6th Pay Commission, draws a salary of, on an average, Rs.30,000, including all allowances. Then, after the implementation of 7th Pay Commission, his salary will increase by 30%, and be Rs.39,000. 

Everybody, including the NC JCM and the news websites, is expecting maximum hike. That is entirely their discretion. They would have a reason too - simple reason is 'if you want to get what you want then you should ask more than thatí. They are hoping for a 60% to 70% increase'. 

This is where most misconceptions occur. Even English newspapers are no exceptions, and have misquoted the numbers. 
"The minimum basic pay, as decided by the 6th Pay Commission, was Rs.7000. The basic salary of the lowest rank employee, who was recruited after the implementation of the 6th Pay Commission, was Rs.7000 per month, plus allowances. Almost ten years later, the basic pay of the same lowest ranked employee who was recruited after July 2015, is Rs.15330 (7000 + 119% DA) and allowances. The Dearness Allowance, which is given twice a year, began at zero and has increased to 119% in the past 10 years". 
The Central Government employees' Federation, NC JCM Staff Side had, in its memorandum to the 7th Pay Commission, hoped for a revised minimum basic pay of Rs.26000 (a 70% hike), instead of Rs.15330. The Federation had detailed and defended with irrefutable explanations and justification for their demands. 
In News Media , Articles are being written questioning the basis on which the Federation is demanding a 3 times hike in salary..?  
In fact, it is not clear on what basis they are publishing articles that Federations were asking a 3 times salary hike and central govt employees can get 3 times hike !
"An employee's salary hike depends on a number of factors, including the pay commission, wage revision, promotion, etc. The normal procedure to find out the percentage of hike is to calculate it on the basis of the pre-hike salary. But, it is ridiculous to see some people calculate the increase based on the salary drawn by the employee ten years ago, and claim that they are going to receive multiple-times of salary hike."

It is almost tragic to see employees, lured by the misguiding claim of a Multiplication Factor of 2.86, assuming that there will be a threefold salary hike. 

The salaries of all Central Government employees from January 2016 onwards will be 30% higher than the pay of December 2015. 

People who differ from this opinion, and those who are convinced that it is very low, are requested to calculate the percentage of salary hike of December 2005 and January 2006. This was the hike recommended by the 6th Pay Commission. Also, if possible, try to find out the percentage of increase in salary of December 1995 and January 1996. This was hike recommended by the 5th Pay Commission. 

It has become very obvious that the Central Government employees are under some kind of spell when it comes to salary hikes. This is an attempt to dispel the illusion. 

I shall resume this article with your esteemed feedback.

Click to read this article in Hindi and Tamil

[Updated on 3.8.2015: According to the sources, the uniform multiplication factor for arriving revised pay will be 2.68 only]


Anonymous said…
The definition/break up of the term `salary` is not clear in that article.
The 6th CPC suggested a SALARY =(a Band Pay + a Grade Pay)* % of DA + other allowances. Then what would be the suggestion for SALARY with 7th CPC?The meaning of 30% salary hike is also not much clear!

On 31/12/2015 If anybody`s GROSS SALARY is as follows:
The total of (Band Pay Rs. 40214 + Grade Pay Rs. 8700 + DA (if 119%) Rs.58208)

What would be the Basic Pay (ONLY) with 7th CPC in this particular case.

Supriyo Basu
Anonymous said…
what will be the amount of pension for CG pensioners (who were retired after 2006) after 7th Pay Commission implementation.Is there any way to calculate it?
Unknown said…
i fully agree with artcle and it more logic with previous pay commission recommendations
Anonymous said…

Year Pay Commission Comparative Basic Pay Multiple of Times
1946 1st Pay Commission Rs.35
1959 2nd Pay Commission Rs.80
1973 3rd Pay Commission Rs.260
1986 4th Pay Commission Rs.950
1996 5th Pay Commission Rs.3050
2006 6th Pay Commission Rs.7730
2016 7th Pay Commission Rs.22500

3 Times from 6th CPC
7 Times from 5th CPC
23 Times from 4th CPC
85 Times from 3rd CPC
280 Times from 2nd CPC
640 Times from 1st CPC
Anonymous said…
Salary and Basis Pay are almost same terms, but in case of Bank Employees all media reports are published '15% hike settled with IBA'. Whereas here they focus in different methods of portray it.
Unknown said…
What about increase of pension of pre 2006 retirees how much increase
7 CPC may be an eye wash to CGE since the govt. failed to grant IR or merger. Can't expect any increase from this givt.
Anonymous said…
Very good article. The multiplication factor can be 2.49. The basis is 119% DA and 30% fitment. i.e. 2.19+0.30=2.49
Sampath, SAO said…
All are only rumours. .let the commission submit a report. Let the government approve and implement the same. .then we xan discuss
ramesh babu vanja said…
if one person joins in gp 0f 4600 his basic pay is 17140,if persons joins in 2006 his gross will be 54000 a person joins in 2011 his gross will be 49000.a person joins in 2015 his gross will be 38000.on what componeny they will increase by 30 %. u mean person with same basic will get different salaries depending upon service
Anonymous said…
Good...Good Effort...This is the time to avoid publishing articles with magnifies of CG Employees pay hike by unrelated individuals in 7th CPC
Anonymous said…
Yes sir...'Missing information will always be misleading'...You are right.
Anonymous said…
The increase in salary would be atleat 35% of gross salary of Dec. 2015 after 07th CPC and 6% DA/or rate based on price index, would be given on 7th CPC Basic Pay in April 2016 but effective from Jan. 2016. Keeping this aspect in mind there would be 40% increase in salary in Jan. 2016 from the last salary drawn in Dec. 2015.
Unknown said…
Unknown said…
let us take an example of 6th cpc
the employee which has salary of 5000 basic pay who promoted 9300+4200g.p. i.e. 13500 in 6th cpc.
da was 74% when 6th pay commission implemented. in which 50% were merged with basic pay.
if we calculate the gross salary before coming 6th cpcwas 5000+ 5000* 0.5=7500(basic pay after merging)+7500*0.24(remaining d.a.)=9300....this is the gross salary before implementation
in 6th cpc increasement in gross salary was 13500-9300= 4200(45% increment in gross salary)
now in 7th cpc rumors is that only 30% increses in gross salary, when d.a. reaches upto 119% till june itself and also no merging with basic pay................
is it fair for the c.g.employee, the hike is only 30%...
this should be atleast 60-70% increment in gross salary...............
so 7th cpc should think about this pay hike..............
Umesh Hs said…
If my basic is now 10520 + 119 % da now total pay is 25800 what my basic is for the 7th cpc. And total salary. Thanks in advance. Any reply pls
Anonymous said…
I think is the minimum salary will be around 21000 for CG employees. It will we fair for all
gowthaman said…
The 7th pay commission has any validity for Qualification metric as clerk, as well as Graduate as clerk, same way in other category, any differences will be implemented regarding Qualification.
Anonymous said…
Simple thing should be the formula of revising pay of govt employees . Just let the pay be doubled when the DA becomes 100 %. Accordingly other things as per market rates. If it is so there is no need to set up a pay commission in a particular time interval. Accordingly we central govt employees are entitled to get our pay revised automatically wef 1.1 2014 as DA has become 100%. The day or the month in which DA reaches 100% the pay should be revised to double. This is the need of our time now and there will be no need to set up any pay commission by spending a lot of govt money.
Unknown said…
Legitimate questions :We need to wait for accepted portion(s) of the Report by means of Central Government Sanction(s),together with the guidelines for implementation.At that point of time alone answers to the questions will be available to working/Retired/Retiring Officials.
Anonymous said…
it is better to increase 15% in 5 every year instead of increase 30 % in 10 year
Clean Hyderabad said…
30% hike is not justifiable . rsrw Goa explained well above
Unknown said…
it reasonable yet ok if implimented on time
Tejas Mariswamy said…
Keep the expectations low between 1.5 to 2 times hike. Anything more is bonus
Anonymous said…
Multiply your basic 48214 with fitment factor 2.86 which gives your basic as on Jan 2016 [137892 with 0% da]. The fitment factor may vary, however as per news and speculations it should be around 2.86.
Unknown said…
The only good thing in 6th CPC was the CEA. Hope 7th CPC maintains it proportionaly.
SHYAM said…
Pay commission approved hike 15% to the Banks will effect from 01.01.2012 and revised every 5 YEARS .On DECEMBER 2013 DA PEGGED AT 58% NOW DA AT 113% AS ON TODAY (DIFF IS 55%)
Its the demand of employees minimum wage only not for buying for CARS AND AUTO .
ONS said…
A hype created in CG Employees that their salary is going to increase by more than 50%. I feel that in 7th pay commission it will be merely with a multiplication factor of 2.5 to 2.55. Further they are going to loos their increment too and it will be though 3% to 5% of BP ranging from Rs.500 to 2500 (Min. -Max.)
anuj said…
DA will be 0%. What about HRA,TPA/TA ?? HRA is presently 30% at Ghaziabad and TPA is 1600 + DA%
Subramaniam S said…
Under the extant orders the basic pension is raised by 20% at the age of 80 and 5% each as and when the pensiner completes 85, 90, 95 and 100 years of age. It is felt that basic pension should be raised by 5% each at the age of 65, 70, 75 and 80 instead of increasing 20% on completion of 80 years of age.
Subramaniam S said…
Under the extant orders the basic pension is raised by 20% at the age of 80 and 5% each as and when the pensiner completes 85, 90, 95 and 100 years of age. It is felt that basic pension should be raised by 5% each at the age of 65, 70, 75 and 80 instead of increasing 20% on completion of 80 years of age.
Raja Sekhar said…
I am sure the hike will be nothing less than 40-45% of gross pay. If this hike is not given the pension to be drawn by post 2016 retiree is less than the pension drawn by an already retired person having similar gross pay.

Still in doubt, see this example:
The person with a basic pay of 20,000 have a gross pay of nearly 50,000 with 119% DA, 20% HRA and 800 TA. If he/she is a pre 2016 retiree, draws a pension of nearly 18,000 after 40% commutation and 119% DR.

To draw the same pension (post 2016 retiree), the basic pay is to be near 52,000 with a 10% DA remaining(presuming entire DA is not merged, only 100% DA is merged), post 2016 gross pay is nearly 70,000 with 20% HRA and presumably 2500 TA.

This gives an atleast 40% hike from gross pay dec 2015 to gross pay jan 2016.
Then we can expect 50% hike because even the pre 2016 pensioner gets some benefit too.
So, in conclusion one can expect a 50% pay difference for sure. Thank you.
ONSingh said…
In my view the multiplication facto for pay hike will be 2.5 to 2.55 along with loss of increment what we are getting today & it will be from Rs.500-2500.
rana said…
Following may also be considered a part of debate:-
1.Aam Admi getting an Insurance /accidental Insurance cover of Rs 2 lakh under PMSBY etc at Rs 12/ and Rs 330/-PM whereas CGemployee after paying Rs 360 ( Rs 30pm) or Rs 720 ( Rate 60 PM) annually and getting only Rs 30000 or Rs 60000/-. Is it not an irony ?
Anonymous said…
i must put on record that the legitimate expectations of our central staff are justified. same time it is ridiculous that some of friends forget the very fact that this blog is ONLY a medium that tries to create awareness among the central staff of the various issues and developments pertain to central staff and NOT the decision taking authority! some of friends upload their basic pay and ask 'what will be my basic in 7th CPC?'! let us forget not that whatever benefits in the past several decades we got were not simply and voluntarily granted or awarded by the governments in the power from time to time, but due to various forms of protests and unflagged struggles including strikes. If not to criticise my friends in negative sense, my long experience in govt service forced me to put on record that many of those, if not all, who are very much eager to see their wages revised multiple times would not be prepared to face even one day break in service or loose even a day's salary! let us see how many of our friends participate in the proposed one day strike for the genuine and just demands. iqbal ahamed, chennai
Unknown said…
IT is much better to increase 5% basic pension after every 5 years than giving 20% at the age of 80 years, punjab already started after last CPC, specially by electricity board but sorry to mention that punjab government did not give DUAL FAMILY PENSION so far, the state which was giving maximum benifits to soldiers in INDIA, do noy know the reasons behind not giving DUAL FAMILY PENSION, once center has given
Anonymous said…
Ganesh said…
If anyones basic pay including Grade pay of Rs. 2800/- is Rs. 16490 and gross salary is Rs. 43000/-. What will be his basic and total salary ( i.e. gross pay ) after implementation of 7th Central pay commission on 1/1/2016.

Ganesh B Kadam
Tapek Riba said…
Due to misinformation by many print and electronic media there is there is lot of hearth burning amongst public, self employed, politicians, etc. hearing the possibility of manyfold hike in pay of govt employees whereas reality is something else. People fails to understand the DA component which forms the major portion of the salary goes back to zero on revision. Thus, what seems to be 3 times hike is in reality only a hike of 30%. This article needs to be given wide publicity so that people understand.

Tapek Riba.
In 6th CPC Childcare leave is a boon to women employees. But the max. age of child fixed 18yrs. is overaged. This has to be reviewed.
Anonymous said…
It should be hiked by 50 % instead of 30 %. According to market price and with comparison to the private sector all cg employees work hard with greater liabilities.
raj said…
yes 30% hike may not be justifable but i heard a different 7th pay commission news here
Unknown said…
Can anyone enlighten me will the the 7th pay commission do justice to all the retired govt servants who have retired after putting in 9 yrs n few months of their fruitful service from the date of last pay revision. Will these yrs will bear some fruit in their pension benefits
Sumaera said…
Is there any hike in stipends offered to students pursuing studies in in iits,nits or any govt. Colleges as per 7th pay commission scale?
kalpana said…
Hello sir
I have joined in central govt contract pharmacist post in january 2016. Actually my job notification was released in august 2015 in that they have mentioned 10k per month but they have recruited me in january 2016 can i get increased salary or 10k. please clarify my doubt.
Unknown said…
There is releasing out CGBSE 12th Result 2017 most probably in the month of April, Check most of the relavent details about CGBSE 12th Result 2017.

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