Friday, December 4, 2015

Comparison of pay determination before and after 7th Pay Commission


The Pay hike recommended by 7th Pay Commission has been described 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.

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 doesn’t 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 extra 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 accommodation 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 has availed Quarter) HRA = Nil

TA = 600 + DA = Rs.1350

Total Gross Pay = Rs. 17100

Deductions

NPS 10% of basic Pay = Rs.700

CGEGIS = Rs.30

Total deductions (700+30) = Rs.730

Net Pay = 17100-730 = Rs.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 = Rs.1800

CGEGIS = Rs.1500

Total deductions = Rs.3300

Net Pay -= 19350-3300 = Rs.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 can calculate from the above example that how much percentage of increase this Group ‘C’ Government servants get from this 7th CPC bonanza ?

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