Benefits and Drawbacks of Pay Band and Grade Pay System – IRTSA Memorandum to 7th CPC

| June 23, 2015

Benefits and Drawbacks of Pay Band and Grade Pay System – IRTSA lists out New Pay Elements introduced by 6th Pay Commission

  • Problem of Pay stagnation eliminated
  • Quantum of increment increases exponentially, but the difference is too large at higher levels.
  • Grade Pay decides the hierarchy.
  • Increase of Pay in Pay Band & Grade Pay is not uniform – in favour of higher scales.
  • Arbitrary adoption of formula of 40% of maximum of the merged scales for deciding the Grade Pay.
  • Inadequate rate on annual increment & increment during promotion.
  • Situation of senior promotes getting less pay than Junior direct recruits, is in violation of basic principle of Pay Band system.

i. Problem of stagnation in pay is eliminated, since pay bands are having long spans.

ii. If employees are stagnated at the maximum of any pay band for more than one year, continuously, he/she shall be placed in the immediate next higher pay band without change in the Grade Pay.

iii. Point to point fixation was facilitated by the pay band system, (with one increment in the revised pay cale for every three increments in the pre-revised scale)

  • But the employees with more years of service were placed in a disadvantageous position.

iv. Quantum of increment increases exponentially, instead of fixed rate of increment attached to every pay scale

  • But the difference became very large at higher levels – thus causing discrimination with those at middle & lower levels.

v. Grade Pay decides hierarchy / seniority of the post.

13.2. Main Draw backs of Pay Band and Grade Pay system introduced by 6th CPC

i. Increase between minimum basic pay of prerevised scale and minimum of every Revised Pay Band is not uniform. There is much greater increase in favour of PB-3 & PB-4.

ii. Arbitrary adoption of formula of 40% of maximum of the merged scales for deciding the Grade Pay – instead of progressive and proportionate rise of Grade Pay from one scale to the next.

iii. Disproportionate rise of pay after Sixth Pay commission – due to grant of disproportionate Higher Grade pays in higher scales (S-24 & above) as compared to S-4 to S-23 (Please see details in the following Table and also the table in next page)

Pay Band Minimum of V CPC scale Minimum of pay band No. of times increase of Pay after 6th CPC
1 2 3 4 (Col. 3 / 2)
S-1 2550 4440 1.74
PB-1 2750 5200 1.89
PB-2 5000 9300 1.86
PB-3 8000 15600 1.95
PB-4 14300 37400 2.62
Rise is 3 to 3.37 times at higher levels. (Please see Table at the end of this Chapter)

iv. Rate of annual increment (3% of basic pay) is inadequate.

v. Increment on promotion (difference in grade pay + one additional increment) is inadequate.

vi. Situation of senior promotes getting less pay than Junior direct recruits, is in violation of basic principle of Pay Band system. For example,

a. A JE with five years of service while getting regular promotion from Grade Pay Rs.4200 in PB-2 to Grade Pay Rs.4600 as SSE isfixed at a Basic pay of Rs. 16120 compared to the Direct recruit’s basic pay of Rs.17140.

b. A JE with five years of service while getting promotion (through LDCE) from Grade Pay Rs.4200 in PB-2 to Grade Pay Rs.4800 as AWM/AME/AE is fixed a Basic pay of Rs. 16120 compared to the Direct recruit’s basic pay of Rs.18150.

c. Pay on Promotion should be fixed at least at par with Entry Pay in the Revised Pay Structure for direct recruits.

 

DISPROPORTIONATE RISE OF PAY AFTER SIXTH PAY COMMISSION

Pay
Band

 

Pay + GP

V CPC minimum pay

Sixth CPC Scale

No. of times increase from V CPC to
VI CPC

Starting pay in Pay band

Grade
Pay

Revised Basic pay

PB-1 5200-20200+1800 2750 5200 1800 7000

2.55

PB-1 5200-20200+1900 3050 5880 1900 7780

2.55

PB-1 5200-20200+2000 3200 6060 2000 8060

2.52

PB-1 5200-20200+2400 4000 7440 2400 9840

2.46

PB-1 5200-20200+2800 4500 8370 2800 11170

2.48

PB-2 9300-34800+4200 5000 9300 4200 13500

2.70

PB-2 9300-34800+4200 5500 10230 4200 14430

2.62

PB-2 9300-34800+4200 6500 12090 4200 16290

2.51

PB-2 9300-34800+4200 6500 12090 4200 16290

2.51

PB-2 9300-34800+4600 7450 13860 4600 18460

2.48

PB-2 9300-34800+4800 7500 13950 4800 18750

2.50

PB-2 9300-34800+5400 8000 14880 5400 20280

2.54

PB-3 15600-39100+5400 8000 15600 5400 21000

2.63

PB-3 15600-39100+5400 9000 16740 5400 22140

2.46

PB-3 15600-39100+5400 9000 16740 5400 22140

2.46

PB-3 15600-39100+6600 10325 19210 6600 25810

2.50

PB-3 15600-39100+6600 10000 18600 6600 25200

2.52

PB-3 15600-39100+6600 10650 19810 6600 26410

2.48

PB-3 15600-39100+7600 12000 22320 7600 29920

2.49

PB-3 15600-39100+7600 12750 23720 7600 29920

2.35

PB-3 15600-39100+7600 12000 22320 7600 29920

2.49

PB-4 37400-67000+8700 14300 37400 8700 46100

3.22

PB-4 37400-67000+8700 15100 39690 8700 48390

3.20

PB-4 37400-67000+8900 15400 39690 8900 48590

3.16

PB-4 37400-67000+8900 16400 39690 8900 48590

2.96

PB-4 37400-67000+10000 14300 37400 10000 47400

3.31

PB-4 37400-67000+10000 18400 44700 10000 54700

2.97

HAG 67000-79000 22400 67000

2.99

HAG+ Scale 775500-80000 22400 75500

3.37

HAG+ Scale 775500-80000 24050 75500

3.14

Apex 80000 (Fixed) 26000 80000

3.08

Cab.
Sec.
90000 (Fixed) 30000 90000

3.00

Download: Memorandum Submitted by IRTSA

Category: Seventh Pay Commission

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