Proposed Pay Structure and Rate of Increment by Confederation in memorandum submitted to 7th CPC

Proposed Pay Structure and Rate of Increment by Confederation in memorandum submitted to 7th CPC
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Chapter –VII

Proposed Pay Structure and Rate of Increment

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 of Pay 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 ultimate analysis, 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 differentpay 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 paysuggested by both 5th 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 ofannual 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 of pay 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	Proposed  minimum 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

Courtesy : : http://karnmk.blogspot.com/