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Saturday, December 05, 2015

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]

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30 comments:

Lakshmi Kanth said...

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.

raj said...

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

Anonymous said...

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.

Nand Dev said...

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

Shailesh Chavan said...

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.

Anonymous said...

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

suresh kumar Awasthi said...

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

Unknown said...

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

all in all said...

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

RUNTU GOGOI said...

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

MAHESH UBHAYAKAR said...

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.

josephmullore said...

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.

Suresh Basumatary said...

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

Ram Pardeshi said...

This is a foolish payy hike by 7CPC

atul abrol said...

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

sachi said...

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

Rajendra Mourya said...

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.

Bhagat Singh said...

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.

Sunil Chaku said...

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

Anonymous said...

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

Anonymous said...

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

krishna kumar devrari said...

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

Brijendra Singh Sodhi said...

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/-

vasimuddin shaikh said...

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

rajesh said...

Gr8 point

Anonymous said...

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%)

Shailen Karmakar said...

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.

Shailen Karmakar said...

The multiplying factor is 2.57 and not 2.62.

Anonymous said...

yes the multiplication factor will be 2.57

Pushpa N said...

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



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