Sunday, December 13, 2015

7th CPC recommendations are far beneficial is beyond doubt – BHARATH KUMAR

with 11 comments
7th CPC recommendations are far beneficial is beyond doubt – BHARATH KUMAR

The author of the article Shri. M.Dorai mentions about 32% increase granted as fitment benefit on pay and grade pay excluding D.A. since the VI CPC had granted 40% fitment benefit on basic only excluding D.A.

It appears some readers do not understand what 225% stands for. 225% is the actual pay plus grade pay and D.A. as on 1/1/2016 which we actually will be drawing under 6th CPC pay pattern. Out of 225%, 100% denotes Basic+ Grade Pay, the additional 125% stands for D.A. as on 1/1/2016(present D.A. as on 1/7/2015 is 119% + 6% as on 1/1/2016=125%), totalling to 225%. +32 (32% fitment on pay + Grade pay) = 257(2.57 factor).


The readers of the article are wrongly multiplying 32% on 225%(2.25 factor) which include 125% D.A instead of multiplying 32% on Pay in the pay band and grade pay i.e. 100 x 32 = 32% which should be added to 100% Pay and Grade Pay and 125% D.A totalling to 257 i.e.100% existing basic pay comprising pay and grade pay + 32% fitment benefit on pay and grade pay + 125% DA totalling to 257(2.57 factor).

The author is perfectly justify in his observation. It was not necessary for the VII CPC to shock the government servants stating that they have given 15% increase by taking D.A. into consideration which they should not have taken while projecting the increase, since VI CPC had taken 40% on basic only and shown it separately as Grade Pay.

The following comparison give correct picture:

1. VI CPC: 40% increase on maximum of V CPC basic pay scale without D.A. and 21.5% increase including D.A(40/1.86 factor = 21.5%)

2. VII CPC: 32% increase of basic pay comprising Pay and Grade Pay without D.A and 14.22% increase including D.A(32/2.25 =14.22%)

Although there is a slight shortage in the fitment benfit granted by VII CPC compared to VI CPC, but the overall benefits under VII CPC is much more than VI CPC when compared to allowances as can be seen here below:

1. D.A amount will be more by 2.57 times from the existing level since the revised salary is increased by 2.57 times (125% D.A and 32% fitment benefit) which may give huge increase every 6 months compared to D.A. increase in 6th CPC Pay+ Grade Pay. For example a person whose basic pay(Pay + Grade Pay) is 29610 he will be getting only Rs.1777 as D.A. at 6%. But in his revised pay of Rs.77700 as per pay matrix at 2.57 factor (29610 x 2.57 =76098( next nearest amount in the pay matrix Rs.77700) his D.A. will be Rs.4662 at 6%.

2. HRA amount is increased by more than 100% of the existing HRA amount as illustrated by the author. For example an employee with a basic pay of Rs.29610 gets only Rs.8883 @ 30% under VI CPC. But under VII CPC he will be getting Rs.18648 @ 24% for the equivalent pay of Rs.77700 under VII CPC leading to an excess of Rs.9765 from the present HRA.

3. Transport .Allowance although retained at the existing level of 2.25 factor but D.A. on T.A gets increased by 2.25 times from the existing level. For example 6% D.A. on Rs.3200 comes to only Rs.192 whereas 6% D.A. on the revised transport allowance of Rs.7200 comes to Rs.432

Therefore the author’s conclusion that 7th CPC recommendations are far beneficial is beyond doubt.

bharath

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11 comments:

Unknown said...

With implementation of pay commission, the base benchmark for DA calculation will change to average CPI for last 12 months as 2.25*115.762

Patel srinivasulu Reddy said...

Mr. Bharat Kumar calculation is completely misleading. He is calculating the Da from 1St January. 2016 as 6% with revised pay structure and old pay structure and concludes that Da is more after 7th pay commission. This can be calculated like that.

akt akt said...

The fact is that the % benefit has to be seen over the gross salary, ie 'Basic Pay + DA' as applicable on 1st Jan, 2015 which works out as (2.57-2.25)/2.25= 14.22%.
In case of 6cpc, considering, as an example, the fitment OM specifically for SAG level stage 21400, the gross salary with 50% DA merged, ie Rs 39804 (21400*1.5*1.24) was revised as Rs 57440/-, thus giving total benefit of 44.3%, which far exceeds the benefit under 7cpc.
True, after adding HRA amount, the benefit % gets a tad better in 7cpc, but then the employees having Official Res don't get that advantage; besides, even with HRA, the benefit under 6cpc was still much higher than under 7cpc.
As a matter of fact, if the rise is calculated based on the gross salary prior to 6cpc without merger of DA (ie BP*1.74), the 6cpc benefit can be shown to be more than 54% compared to which 7cpc has actually doled out peanuts.
It appears that in the outreach to cover all retired staff under OROP, thus ceding windfall gains to them, the working employees have been given a raw deal.

Pankaj Kumar said...

Low level ke employees ko koi benefit nahi ho raha h. HRA ko add kyo karte ho jo Govt Quarters me rahte h unko HRA nhi milta h.

Akash said...

MR.CHOOTIA BHARAT U THINK ABOUT LOWER LEVEL I.E GP 1800 TO 4200. WHAT THEY WILL GET. CALCULATE THEN TELL.

praveen babu Mahale said...

It is extremely sorry to say that the fitment formula recommended by the seventh pay commission is not at all useful. Earlier pay commission had given the fitment formula without considering hike of D.A. on effected date where as this pay commission made the fitment formula considering the hike of D.A with effective date which is not at all considerable. According to 7th pay commission recommendation, only 14.22%hike in Basic including grade pay is given which is very less and not at all genuine. The pay commission bluffed the employee one side and another side bluffed the government keeping the hike of D.A. percentage as earlier. Though government has less load of financial burden at present, where as keeping the D.A percentage as earlier gives huge financial burdens to government in every six month. The pay commission some how satisfied employees rising of existing H.R.A and T.A comparing to earlier benefits. The total enhancement of salary including H.R.A and T.A is some what helpful to working employees whereas for pensioners it is is very less as they are not getting any other allowance apart from Basic pay. If government is not thinking of future financial burden keeping the D.A .percentage as usual and thinking to escape from present financial burden means government has to face unnecessary problem to provide hike of D.A every time. Hence it is better to increase 32% hike in Basic considering the fitment formula 2.97(225+32%of 225=72=297)changing the D.A percentage to 50% of Price index that means if 6% rised it should be taken as 3%. Accordingly H.R.A, T.A and any other allowances percentage may be reduced as per this hike of basic. Though government has little bit more burden while effecting pay commission but it can escape from future financial burdens to no doubt. I hope that Mr. Modi will look in to the matter and take proper action in this respect.

Anonymous said...

Sir,

You are only taking higher pay while calculating.
At higher pay revision is/or may not be required.
you calculate the salary of low income group and then comment please.

A Critic.

Anonymous said...

The author is not true. Please present the picture of Group C or D employees in your calculation and not in respect of only group B and A employees. Then only the picture will come. The net income of a newly recruited MTS employee will become less than his / her present net income. That is the real picture when 80% of the work force is comprised of Group C or D employees.

K. nandakumar, General Secretary/Rail Mazdoor Union and GS/HMKP tamilnadu said...

Who are you Mr Bharathkumar, you have not gone through the report , your write up seems to be half backed, the central govt employees are getting pay revision once in ten years, and they get paltry sum as retirement benefits. Why is that you have not studied about the pay and perks and pension benefits of MPs and MLAs who loot the money of the public. The pay recommeded after the implementation of the 7th pay commission will be nothing what the employee wil be getting if the DA is merged and the allowances , i.e gross pay will be the new pay, added to it the HRA factor has been reduced to 245, earlier it was 30%, so 6% has been subtracted and added to the fitment factor. Moreover in most of the cases the new pay will bring in reduced take home for the employees, there is a big gap of 1:14 times from the lower level to the higher level. so the govt is anti labor and crush the earnings and wAnted to promote individual crorepathis so that the lworking class are bothered about the daily bread and butter and the lower class should not progress which is the aim of the government.

racha said...

Mr Bharat, please calculate Net salary for the persons whose grade pay Rs.1800/- (if he is joined recently and resides in Govt. Accommodation). Then Comment please.

Unknown said...

Bharat Kumar Ji,
DA is calculated on the increase/decrease of AICPI. The base for 6th CPC is 115.67. But this base will be changed to 260 approx on implimentation of 7th CPC. So inverse less by 2.25 times. Therefore there will not be huge increase as you projected.



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