# 7th Pay Commission Pay Structure Proposed by Confederation

August 1, 2014

## 7th Pay Commission Pay Structure Proposed by Confederation of Central Government Employees and Workers in the Memorandum submitted to 7th CPC

In the preceding chapters we have dealt with the various principles of pay determination as was enunciated by the successive Pay Commissions.  The 6th CPC introduced  the new concept ofPay Band and Grade Pay.   We are not able to comprehend  any logical methodology having been adopted by the 6th CPC in constructing the Pay Band and Grade Pay.  In the ultimateanalysis, we found that there had been no uniform multiplication factor.   It varied from 2.2 time to 3.

The changes effected by the Government while implementing the recommendations  of the 6th  CPC further compounded the confusion and making it more irrational and arbitrary.   The 6th  CPC in their report stated that they have upgraded certain pay scales having appreciated the contention made by the employees  organizations.  They  merged certain  other pay scales in an effort to
delayering the functions.  But the new pay that emerged from such upgradation/merger was not equivalent to the higher pay scales in the said group.

For instance, the erstwhile pay scales of Rs.5000-8000, 5500-9000 and  6500-10500 were merged.The multiplication factor for pay band construction was 1.86 times of the minimum.

Therefore the pay band for the pre merged pay scales was determined to begin at Rs.9300/-.  Having merged,the pay band must have begun at 12,090/-, i.e. 1.86 times of 6500/- in which the other pay scales were merged.

7.2 The manner in which the Grade pay was devised is also questionable.  At the lower level the Grade Pay progresses @ Rs.100/- ,i.e. 1800, 1900, 2000, etc.The pay in the Band + Grade Pay at the entry level is 5200 + 1800 = 7000.An employee is entitled for 3% increment every year.  He gets a financial benefit of Rs. 210  every year on account an increment   whereas on promotion his grade pay gets increased by just Rs.100/- only.   The Grade Pay was devised at 40% of the maximum of the pre revised time scale of pay.

The maximum  of any time scale of pay will depend upon the rate of increment and the span of the scale of pay.   The ratio between the minimum and the maximum of all pay scales was not uniform, rather it could not be uniform. Therefore,  prescribing Grade Pay as a percentage of such variable maximum, in our opinion, was erroneous.  Normally fitment benefit represent  the gap between pre revised minimum and the revised minimum.

The 6th  CPC recommendation  of Grade Pay did not serve this purpose also.

Having been expressed in absolute quantum amount it gave varied benefit in different pay bands as also at different stages in the same pay bands.

7.3  The Grade Pay system brought about various anomalies, which were raised at the NAC but found no resolution despite discussions on several occasions in the last 6 years.  We are of the firm view that the 7th  CPC should revert   to the Pay Scale System which has been time tested. We  have  constructed the pay  scales  maintaining  the  relativities  with  the time scale  of  pay suggested by both5th and 6th CPC.

7.4  While constructing the pay scales we have taken the rate of increments at 5% instead of 3% presently available.We have done so on the ground that most of the PSUs including the banking industries provide the incremental rate at 5% and over a period of time it raises the salary level of the personnel.   We therefore request that the 7th  CPC may recommend the rate of   annual increment at 5%.  Incidentally we may also state that the uniform date of increment prescribed by the 6th  CPC has encountered certain problems and anomalies.   We, therefore,   suggest that the 7th  CPC may recommend,  for administrative expediency,   two specific dates as increment dates,Viz.  1st  January  and  1st  July.    Those  recruited/appointed/promoted   during  the  period between 1st January and 30th June will have their increment date on 1st January and those recruited/appointed/promoted  between 1st  July and 31st  December will have it on 1st  July next year.  This apart we request the Commission to specifically recommend that those who retire on 30th June or 31st December are granted one increment on the last day of their service.

7.5  We have also felt that a further reduction  in the number of pay scales is needed.   While constructing  the  pay scales we have removed those  pay scales pertaining  to  Grade  Pay of Rs.1900, 2400, 4600, 8700 and the scale of pay of Rs. 75500-80000.  We are of the opinion that the instrument of Special Pay which was in operation earlier should be brought back to address the need of  intermediary  grades  in certain organizations.    The Associations  and Federations representing  the employees and  officers of  various  departments and  various categories  will submit  their memorandum  indicating  the pay scales  to be assigned  to the categories  of the employees and officers they represent taking into account the nature of functions assigned to those categories separately.

7.6 Presently,  functional  promotion  is made to the next hierarchical  position  whereas  MACP promotion is Grade Pay based, irrespective of the fact whether a particular Grade Pay exist in the hierarchy or not in the concerned department.   Our suggestion  to reduce the number ofpay scales go  a  great  extent  to obviate  the  difficulty  encountered due  to the  dual system  of promotion.

7.7  We have constructed open- ended pay scales. This is to ensure that no employee stagnates without increment. The pay of the Secretary and the Cabinet Secretary has been kept as a fixed amount as has been the recommendation  of the 6th  CPC. In consonance with our view on the need for further de-layering, we have suggested only 14 Pay scales indicating in the table the minimum of each of them.The said 14 pay scales are given below:

In Table 7.2, the corresponding pay scales of the 6th CPC recommended Grade Pay are given for reference.

### Table No. 7.1. Proposed pay scale minimum.

 Sl. No. Pay scale No. Present PB PB No. Grade Pay Proposedminimum  of the pay scale. 1 S.1 5200-20200 PB.1 1800 26000 2 S-2 5200-20200 PB 1 2000 33000 3 S-3 5200-20200 PB 1 2800 46000 4 S-4 9300-34800 PB 2 4200 56000 5 S-5 9300-34800 PB 2 4800 74000 6 S-6 9300-34800 PB 2 5400 78000 7 S-7 15600-39100 PB 3 5400 88000 8 S-8 15600-39100 PB 3 6600 102000 9 S-9 15600-39100 PB 3 7600 120000 10 S-10 37400-67000 PB 4 8900 148000 11 S-11 37400-67000 PB 4 10000 162000 12 S-12 75500-80000 HAG 0 193000 13 S-13 80000( Fixed ) Apex scale. 0 213000 14 S-14 90000  (Fixed) Cabinet Secretary 0 240000

### Table 7.2. New Pay scale minimum

 SlNo. Grade pay of 6thCPC Minimum of the new pay scale 1 1800 26000 2 1900 31000 3 2000 33000 4 2400 41000 5 2800 46000 6 4200 56000 7 4600 66000 8 4800 74000 9 5400 78000 10 5400 in PB3 88000 11 6600 102000 12 7600 120000 13 8700 139000 14 8900 148000 15 10000 162000 16 12000 193000 17 75000-80000 202000 18 80000 fixed 213000 19 90000 fixed 240000

Category: Seventh Pay Commission