Enter Keyword and Search


The Shocking fact of Pay hike recommended by 7th Pay Commission

with 30 comments
The Shocking fact of Pay hike recommended by 7th Pay Commission

The Pay hike recommended by 7th Pay Commssion has been discribed as Bonanza by Media

Pay commission said 14.29 % Hike in Pay is recommended, Media said central government employees will get 23.55% hike in salary including allowances.

we will find out the real fact about the so called Bonanza..!

whether the Media claims are true or not through a simple calculation…!



The strength of Group C employees in Central Government is 85%. So we must know what the Pay Hike is recommended for them actually.

But Media give more attention to this 15 % because they have been paid more

It doesnt make sense that the Pay hike recommended for remaining 15 % taken into account. Because they are creamy layer of the Government. The Pay Hike for them also will be decided by them. So the take extar care for not giving more to this 85%.

7th CPC recommendation on Pay Hike is mocking rather than encouraging the Central government employees. See the following example

Assume a govt servant has been appointed in GP 1800 on 1st August of 2015 and he has been provided accomadation in Govt Quarters

His Net Pay for the month of January 2016 in Sixth CPC is given below..

Basic Pay Pay = PB Rs.5200 + GP Rs.1800 = Rs.7000/-
Assuming DA 125% as on 31-1-2016 = Rs.8750/
( Since he hs availed Quarter) HRA = Nil
TA = 600 + DA = Rs.1350
Total Gross Pay = Rs. 17100

Deductions
NPS 10% of basic Pay = 70
CGEGIS = 30
Total deductions (700+30) = 730
Net Pay = 17100-730 = 16370

His Revised 7th CPC Pay as on 31-1-2016
Minimum Basic Pay = Rs. 18000/-
DA = Nil
HRA = Nil
TA = Rs. 1350
Total gross pay = Rs.19350

Deductions
NPS = 1800
CGEGIS = 1500
Total deductions = 3300
Net Pay -= 19350-3300 = 16050

Before 7th Pay Commission his Net pay = Rs. 16370
After 7th Pay commission his Net Pay = Rs. 16050

He will be drawing Rs.320 lesser in 7th Pay Commission revised Pay than from his Sixth CPC pay

Anybody acn calculate from the above example that how much percentage of increase this Goup ‘C’ Government servants get from this 7th CPC bonanza ?

[ *updated on 9-12-2015 ,

* In pre revised Pay calculation, earlier only 10% of Basic Pay has been taken into account for NPS mandatory deduction. it is now corrected as 10% of Basic Pay + DA @125%

*inconvenience caused is regretted]

Related Posts...

30 comments:

  1. Exactly.
    Further, my Transport Allowance was reduced from 3600/- (presently drawing) to 1350/- (As per 7th CPC recommendations).
    Since, may Pay in PB reached 7,440/-, I am drawing 1600 TA + DA thereon from 01-07-2015.
    But, my new TA will be 1350/- since my Grade Pay is Rs.1,900/- (L2 Scale as per 7th CPC)

    As said in the previous example, my Net Salary will also be lesser than what I am drawing now.

    ReplyDelete
  2. Please deduct nps on DA also in pre revised scale. Less 875

    ReplyDelete
  3. The labour class will always be a labour class, come any pay commission, because the pay commission master is the owner itself.
    How a boss can pay an employee more than him? Just imagine.

    ReplyDelete
  4. Calculation is wrong. The 10% deduction for NPS in old salary should be Rs.700 not Rs. 70. Kindly don't mislead.

    ReplyDelete
    Replies
    1. Mr. Nand Dev the calculation is right and correct except he has omitted 0 in first instance in place of 700 he has written 70 rest is correct

      Delete
  5. Nps is calculated on basic plus DA. That means he will get net pay Rs.15500/- as per sixth pay. So he will draw Rs.500 extra as per 7th pay. However the increase in pay is too minimal.

    ReplyDelete
  6. sir,

    U have derived 10% NPS only on basic pay, but it should be calculated on basic+da ie (7000+8750) so the diff will be Rs. 875 from net pay of rs. 16370 - 875 = (15495). however the salary hike is very very low

    ReplyDelete
  7. Simple formula and excellent facts. Actually either the commission prepared report under pressure of government or they did not do their homework..... Something messy..

    ReplyDelete
  8. Good effort...........media and govt. Both r PhD in eyewashing....

    ReplyDelete
  9. we must protest at the government...friends,, we need justification.

    ReplyDelete
  10. Sir then what is the meaning of pay revision which comes after a long period of ten years...

    ReplyDelete
  11. If you notice, all newspaper have said that the Pensioners' hike is 24% which means that there was some sort of a press release or media release. The hike is only 14.2% and please also find out how this 24% came into being, reported simultaneously in all newspapers.

    ReplyDelete
  12. Misleading article by the author. All are getting a minimum increase of 32 per cent of their basic pay. Hope that the author will realise and correct.

    2. NPS and CGEGIS is the savings by the Govt. Servant. Don't exaggerate the deduction towards savings. Work out gross pay before and after revision and compare.

    ReplyDelete
  13. It's really great & unbelievable steps taken by present govt towards Make in India

    ReplyDelete
  14. This is a foolish payy hike by 7CPC

    ReplyDelete
  15. It's true there is no hike in pay for employees drawing grade pay 1900, 1800. Please raise voice against such discrimination with low paid employees which are major part of employees

    ReplyDelete
  16. I hope an option will be given to draaw salary either in 6th pay or 7th pay.

    ReplyDelete
  17. What a rubbish claim that we have abolished grade pay system.
    In fact they carried it to the next level of anomaly by deriving pay levels from existing grade pay.

    ReplyDelete
  18. It is very sad to mention that since independence, our past Govts/Pay Commissions tried their best to minimise the gap between highest pay and lowest pay(gap/ratio maximum and minimum). But since Fifth Pay commission, it was run in reversed gear ie gap/ratio was started widening. Since Fifth CPC, rate of DA was provisioned same for Top and bottom which was absolutely wrong. similarly now 7th CPC has widen this gap instead of minimising. The CPC has given weightage of 2.57% for level 1 to level 5 ( ie Grade pay of 1800,1900,2000,2400 & 2800), 2.62& for level 6 to 9 (ie Grade pay of 4200,4600,4800 * 5400(Gp B)), 5.67% for level 10 to 13 (ie Grade pay of 5400,6600,7600 * 8700) and 5.72% hike for levels 14 and above because they need more food items as they are rule makers or king who need more. This is new type of democracy of Officers only and for below officers. Mind is valuable than workforce or humanity.

    ReplyDelete
  19. NPS Calculation was wrong. NPS calculated on Pay which is Basic + DA. ypu may correct the above example

    ReplyDelete
  20. At least govt salaried employees are getting something. Think about unemployed and people of unorganized sector. Satisfaction always within the work we delivere.

    ReplyDelete
  21. wrongly calculated NPS in 6th CPC. NPS = 10% Of (Basic Pay + Grade pay + DA) insted of 10% of Basic Pay + Grade pay.
    The correct calculation is as under :-
    His Net Pay for the month of January 2016 in Sixth CPC is given below..

    Basic Pay Pay = PB Rs.5200 + GP Rs.1800 = Rs.7000/-
    Assuming DA 125% as on 31-1-2016 = Rs.8750/
    ( Since he availed Quarter) HRA = Nil
    TA = 600 + DA = Rs.1350
    Total Gross Pay = Rs. 17100

    Deductions
    NPS 10% of Basic Pay + Grade pay + DA = 1575
    CGEGIS = 30
    Total deductions (1575+30) = 1605
    Net Pay = 17100-1605 = 15495

    His Revised 7th CPC Pay as on 31-1-2016
    Minimum Basic Pay = Rs. 18000/-
    DA = Nil
    HRA = Nil
    TA = Rs. 1350
    Total gross pay = Rs.19350

    Deductions
    NPS = 1800
    CGEGIS = 1500
    Total deductions = 3300
    Net Pay -= 19350-3300 = 16050

    Before 7th Pay Commission his Net pay = Rs. 15495
    After 7th Pay commission his Net Pay = Rs. 16050

    He will be drawing Rs.555 higher in 7th Pay Commission revised Pay than from his Sixth CPC pay

    ReplyDelete
  22. I AM GIVING YOU ONE ILLUSTRATION WHICH SHOWS THAT MY SALARY WILL DECREASE AS PER 7TH PAY COMMISSION, IF I CALCULATE MY SALARY BY SIMPLY MERGING 100% DA IN MY BASIC SALARY.
    SALARY AFTER MERGING 100% DA
    & AS PER 6TH PAY COMMISSION SALARY AS PER 7TH P C
    PAY BAND (ASSUMING BP+GP=27,920)55840 73400(27920x2.62 & THEN
    CORRESPONDING TO Matrix level 9
    & Index level 12)
    GRADE PAY 5400 NIL
    HRA 18372(@30%) 17616(@24%)
    DA 15310 @25%(ASSUMING NIL(AS 2.62 FACTOR TAKES CARE
    125% DA AS ON 1.1.16 ; OF IT)
    125%-100% MERGED)
    TA 3200 7200
    DA ON TA 800 NIL
    GROSS SALARY 98922 98216
    THUS A LOSS OF Rs706/-

    ReplyDelete
    Replies
    1. You are wrong sir,
      Your payment as per 6th cpc after 01.01.2016
      Basic+gradepay = 27920
      Da (125%) = 34900
      Basic+GP+DA= 62820. (total 1)
      Hra (30% of BP+GP)=8376
      TA = 3200
      DA on TA = 4000
      Hra+TA+DA on TA =15576. (total 2)

      Total 1+total 2=62820 + 15576 =78396


      Payment as per 7th pay

      Basic = 27920 x 2.62 =73400 (as per matrix)
      DA=0
      HRA (24%) = 17616
      TA =7200
      DA on TA =0

      Total =98216

      Difference in pay= 98216 -78396 = 19820
      Total increase = 19820 (25.28%)

      Delete
  23. Govt. Give an option if he except 7cpc recommendetion as it is the employee draw salary either 6th cpc or 7cpc

    ReplyDelete
  24. The multiplying factor is 2.57 and not 2.62. The 2.62 is applied by the 7th CPC once only for arriving at the minimum pay of the concerned Grade Pay. After that you have to calculate taking into account the multimlying factor 2.57 and not 2.62.

    ReplyDelete
  25. The multiplying factor is 2.57 and not 2.62.

    ReplyDelete
  26. yes the multiplication factor will be 2.57

    ReplyDelete
  27. Can u give details about salary For group D Indian post after 7th pay commission

    ReplyDelete


Recent Stories...

Disclaimer

90Paisa - Dedicated to Central Government Employees and Pensioners. As and when orders amending the rules are published by the Government, the amendment orders will be published in our blog immediately. Readers are requested to refer to the source link is given at the end of the post.
All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. 90paisa accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog.
Links to other websites that have been included on this blog are provided for public convenience only.
90paisa is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.
-----------------------------------
10 crore viewers…90 Paisa Blog touches new heights
Making a Mark Achieved 100 Million Page Views - "Central Government Employees News" Blog
We are proud of our latest accomplishment – 90Paisa Blog, the first ever blog for Central Government employees, has now crossed 10 crore hits!!!
From the bottom of our hearts, we express our sincere gratitude to all our patrons who have been supporting us all along.

Civilian Pay Matrix

Defence Pay Matrix

Popular Posts

Ever Green Posts

Ever Remembering Pots..!

Recent Posts