Pay Structure As Per 7th Pay Commission

Determination of Minimum and Maximum Pay submitted to 7th pay commission by IRTSA

Principles of Determination of Pay & Determination of Minimum & Maximum Wages Submitted to 7th CENTRAL PAY COMMISSION

Indian Railways Technical Supervisors Association (IRTSA)

     M. SHANMUGAM                 HARCHANDAN SINGH
Central President                  General Secretary
Compiled by K.V.RAMESH, Senior JGS/IRTSA

Relevant Terms of reference

2.a) To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities / benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

i. Central Government employees-industrial and non- industrial;

2.b)To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind …….

Article 43. Living wage, etc., for workers

The State shall endeavour to secure, by suitable legislation or economic organisation or in any other way, to all workers, agricultural, industrial or otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities and …..

Job Evaluation

Scientific job evaluation methods are available for a fair comparison of wages.
Difference in nature of work can well be taken care of in scientific job evaluation.
Recommendation of 3rd CPC for adoption of Job evolution technique on experimental basis is still not tried.
Classification or Grading method is easier method for job evaluation.

Proposed method for Job Evaluation

Brief Job descriptions and details of pay scales, emoluments and other particulars be collected for various group of Employees.
Jobs can be broadly grouped like “Industrial”, “Non-Industrial” and “Secretarial” etc.
These groups may be further broken up into various sub-groups like “Artisan”, “Supervisory”, “Administrative”, “Supportive”, etc.
Separate “Grade definitions” shall be finalised for each of these Groups & sub-groups,
Indicating, type of work, level of job difficulty, area & Span of Supervision, etc
Maintaining horizontal parities & vertical relativities.
Will results in

better justice, better job satisfaction, greater industrial harmony leading to higher efficiency and productivity and the time, cost and effort would definitely be worth the returns, particularly in the long run

Minimum Wage as per 6th CPC method

Pay in Pay Band + Grade Pay + % of DA + Compensation factor based on rise in NNP at factor Cost.

Calculation of compensation factor

Year	Per Capita NNP at factor cost At constant price	Increase over previous year
2005-06	26015	1872
2006-07	28067	2052
2007-08	30332	2265
2008-09	31754	1422
2009-10	33901	2147
2010-11	36342	2441
2011-12	38037	1695
2012-13	39168	1131
2013-14*	41046	1878
2014-15*	42924	1878
% Increase of NNP at factor cost on Constant Prices for the period of ten years		65%

* Assumed figures as per average increase

Proposed Minimum Pay w.e.f. – 1.1.2016

Minimum Basic Pay + DA 140%+ Compensationfactor 65% of BP + DA
Minimum Basic pay after VI CPC	Rs.7000
Projected DA 140% (as on 1.1.2016)	Rs.9800
BP+DA	Rs.16800
Compensation factor (65%)	Rs.10920
Proposed Minimum Pay	Rs.27720 or Rs.28000
Proposed Number of times increase of BP	3.96

Proposed Minimum & Maximum Pay based on post 6th CPC formula

EXISTING PAY			PROPOSED PAY @ 3.96 TIMES (ROUNDED OFF) OF EXISTING PAY
Minimum		Maxmum	Minimum		Maximum
Pay in Pay Band	Grade Pay		Pay in Pay Band	Grade Pay
Rs.5200	Rs.1800	Rs.80,000	Rs.20,800	Rs.7200	Rs.3,20,000

Maximum Pay Shall be increased from Rs.80,000 to 3,20,000.
Minimum Pay shall be increased from Rs.7000 to Rs.28,000.

Intermediate Pays shall be fixed in the same way.

Upgradation shall be granted to specific categories on functional & other related justification.

Determination of Maximum Pay First & then arriving Minimum Pay in the ratio of 9:1

♣   Maximum Pay shall be fixed first as per rise of NNP and then the Minimum pay in the ratio of 9:1 thereof and the Intermediate Pays shall be fixed.

♣   Maximum Pay = Rs.80,000 x Compensation factor based on rise in NNP at factor Cost. = 80000 x 3.96 = Rs.316800 or Rs.3,20,000.

♣   Therefore, Minimum Pay works out to be Rs.320000 / 9 = 35555 or Rs.35500.

Rate of Increments

♦  Annual Increment:- Rate of annual increment in each grade may please be granted @ 5 per cent.

♦  Increment on Promotion:- During Promotion minimum 10% increase in Basic Pay has to be granted.

 ♦   Fixation of Pay on Promotion at par with Entry Pay:- Pay on Promotion should be fixed at least at par with Entry Pay in the Revised Pay Structure.

Thank you
Source: IRTSA
[http://www.irtsa.net/pdfdocs/7th_CPC_Principle_of_Pay_Determination.pdf]

7th Pay Commission Projected Pay Scale

The 7th pay commission projected pay scale is worked out  based on the comparative rise in the pay scales from 1st pay commission to 6th Pay commission.   

Being a government servant one can witness a considerable pay hike at least twice or thrice of his/her entire service period. Because, other than promotion, only the pay commission recommendation will give them considerable pay hike. But it takes place once in ten years. Now a days a government employee can render service 20 or 30 years only due to non availability of employment opportunity in government service below the age of 25. So there is no need to be get annoyed by hearing the voice for seventh pay commission from central government employees. Because constituting next pay commission is for nothing but to review the salary of the govt. servants with the current economical condition of the country.

How the pay of a govt. employee had been fixed at the beginning of the Independence India.

Till now there are six pay commission had been constituted to review and recommend pay structure of central government employees.

All the six pay commissions have taken many aspects into consideration to prescribe the pay structure for government servants.

In the first pay commission the concept of ‘living wage’ was adopted.

In second pay commission it had been reiterated that the pay structure and working condition to be crafted in a way so as to ensure the effective functioning of government mechanism.

The third pay commission adopted the concept of ‘need based wage’

The Fourth CPC had recommended the government to constitute permanent machinery to undertake periodical review of pay and allowances of Central Government employees, but which got never implemented.

In Fifth pay commission all federations demanded that the pay scale should be at par with the public sector. But the pay commission didn’t accept this and told that the demand for parity with the Public Sector was however difficult to concede as it felt that the Job content and condition of service in the government and pulic sector not necessarily the same. There were essential differences between the two sectors.

The Sixth Central Pay Commission, claimed that it had not only tried to evolve a proper pay package for the Government employees but also to make recommendations rationalizing the governmental structure with a view to improve the delivery mechanisms for providing better services to the common man

What about seventh pay commission?

Generally every pay commission, before recommending a pay structure, it used to analyze all the aspects including the economic situation of the country, financial resources of the government, comparison with the public sector, private sector and state government pay structure etc. So it is very much clear that Pay Determination is very complicated and sensitive task. Without any doubt every one accepts that this is very challenging task too. In order to determine the new pay structure the pay commission has to go through voluminous data consisting current economic condition, strength of the work force and working condition etc. In the meantime, if one tries to suggest or comment about 7thy pay commission pay scale or about what the seventh pay commission pay scale would be, it will not get much importance.

But when we come across all the recommendations of six pay commissions, we observed an interesting factor which is common to all the pay commission recommendations, particularly in the matter of percentage of increase in the pay. Average 3 times increase in the pay was recommended by each pay commission and it was accepted by government and implemented. We have posted three articles about six pay commissions before this post.

Click the link given below to see those articles and average increase was worked out in the table.

First CPC to Third CPC Pay Scales

Fourth CPC pay scale and Fifth Pay commission

Short Description about Sixth Pay Commission

Obviously it is simple thing, we can say it a mathematical coincidence that we have in common in all previous pay commission, but we cannot neglect this. Because it was there, every time it is noticed that the revised pay was approximately three times higher than its pre revised pay. Apart from all the factors which has been used to determine the pay revision, we can use this simple formula ‘common multiplying factor’ to know the 7th pay commission pay scale . If next pay commission prefer to continue the same running pay band and grade pay system for seventh pay commission also, the pay structure may be like the following projected figures given below, using common multiplying factor ‘3’. The Following is only the projected figure using common multiplying factor ‘3’

7th Pay Commission Projected Pay Scale

SIXTH CPC PAY STRUCTURE				PROJECTED  PAY STRUCTURE  AFTER  7th PAY COMMISSION
Name of Pay Band/ Scale	Corresponding Pay Bands	Corresponding Grade Pay	Entry Grade +band pay	Projected entry level pay using uniform multiplying factor` 3’
				Band Pay	Grade Pay	Entry Pay
PB-1	5200-20200	1800	7000	15600-60600	5400	21000
PB-1	5200-20200	1900	7730	15600-60600	5700	23190
PB-1	5200-20200	2000	8460	15600-60600	6000	25380
PB-1	5200-20200	2400	9910	15600-60600	7200	29730
PB-1	5200-20200	2800	11360	15600-60600	8400	34080
PB-2	9300-34800	4200	13500	29900-104400	12600	40500
PB-2	9300-34800	4600	17140	29900-104400	13800	51420
PB-2	9300-34800	4800	18150	29900-104400	14400	54450
PB-3	15600-39100	5400	21000	29900-104400	16200	63000
PB-3	15600-39100	6600	25530	46800-117300	19800	76590
PB-3	15600-39100	7600	29500	46800-117300	22800	88500
PB-4	37400-67000	8700	46100	112200-20100	26100	138300
PB-4	37400-67000	8900	49100	112200-20100	26700	147300
PB-4	37400-67000	10000	53000	112200-20100	30000	159000
HAG	67000- (ann increment @ 3%) -79000	Nil				201000
HAG+ Scale	75500- (ann increment @ 3%) -80000	Nil				226500
Apex Scale	80000 (Fixed)	Nil				240000
Cab. Sec.	90000 (Fixed)	Nil				270000

DOWNLOAD pdf file format : Projected-Pay-scale-after-7th-Pay-Commission

http://www.gservants.com/2013/02/11/7th-pay-commission-projected-pay-scale/