The Central Executive Committee Meeting of BSNL Employees Union is being held in New Delhi on 24-25, November, 2015. The CEC will be inaugurated by Com.K.Hemalata, National Secretary, CITU. A seminar on ‘ Revival of BSNL’ is also arranged in connection with the CEC and the participants include Shri. Anupam Shrivatava, CMD, Ms.Sujatha Ray, Director (HR),BSNL.

AIBDPA wishes the CEC all success.

JCM Staff Side (NJCA) has called upon all Central Government Employees to observe “BLACK DAY” by holding massive demonstration, wearing black badges, all over the country on 27^th November 2015 to protest against the retrograde recommendations of the 7^th CPC.

AIBDPA fully endorses the decision and request all units to participate enmasse in the protest action

7th Pay commission simplified the calculation for arriving revised Pay through new 7th CPC Pay Metrix

We here illustrate the method through easy 6 Steps to calculate our 7th CPC New Pay and Allowances to know your self

Lat us Assume you are drawing Grade Pay Rs.4200 and Pay in the Band Pay Rs.12110

To calculate your Basic Pay and Allowance follow the steps given below.

Step-I

Calculate your sixth CPC basic Pay                    ( Grade Pay + Band Pay)   = 4200+12110= 16310

Step-II   

Multiply the above figure with 7th CPC Fitment Formula 2.57 16310 x 2.57 = 41916.70 . ( Paisa to be rounded off to the nearest Rupee)                            The Ans is = Rs.41917

Step-III

Match this Answer with Matrix Table ( Given Below) Figures assigned in Grade Pay column Rs.4200

There is no matching figure we arrived above in this matrix, so the closest higher figure assigned in the Grade Pay column can be chosen ie is Rs. 42300

So , Rs 42300 is your New 7th CPC Basic Pay

Step-IV

Identify your HRA [ See : 7th Pay commission recommendation on HRA]

HRA has been revised as 24%, 16% and 8% for 30% , 20% and 10% respectively

So if you are in 30% HRA Bracket, your HRA in 7th CPC is 24% vis versa.

Let us assume now you are in 30% HRA bracket, your revised HRA is 24%

Find the 24% of the Basic Pay  =   42300 x 24/100 = 10152

 Your HRA is Rs.10152

Step-V

Identify your TPTA (Transport Allowance)

7th CPC Recommends Transport Allowance for three Category of Employees for Two Types of Places

If you are living in A1 and A classified cities (See the List of 19 cities classified as A1 and A cities) you will be entitled to get higher TPTA rates

And since your Grade Pay is 4200 you fall in Second category

ie Grade Pay 2000 to 4800 – Rs 3600+DA

Your TPTA is Rs. 3600/- (DA is Nil as on 1.1.2016)

Step-VI

(Sine DA will be Zero from 1.1.2016 So no need to calculate the DA to calculate 7th Pay and Allowances from 1.1.2016)

Add all the figures 

New Basic Pay + HRA+TPTA = 42300+10152+3600 = 56052

 Your revised 7th CPC Grass pay as on 1.1.2016  =  Rs.56052

7^TH PAY COMMISSION REPORT SUBMITTED TO GOVERNMENT OF INDIA ON 19.11.2015

Transport Allowance (TPTA) is granted to cover the expenditure involved in commuting between place of residence and place of duty.

7th CPC Recommends  Transport Allowance for three Category of Employees for Two Types of Places

7th Pay commission Transport Allowance for Higher TPTA Cities (19 Cities Covered)

          Incidentally, only 13 cities fall under this categorization: six in A1, viz., Hyderabad, Delhi, Bengaluru, Greater Mumbai, Chennai, Kolkata and seven in A, viz., Ahmedabad, Surat, Nagpur, Pune, Jaipur, Lucknow and Kanpur. Recently, six more cities, viz., Patna, Kochi, Kozhikode, Indore, Coimbatore and Ghaziabad have been added to A1/A categories, making it nineteen in all.

Grade Pay 1800 to 1900 – Rs 1350+DA Grade Pay 2000 to 4800 – Rs 3600+DA Grade Pay 5400 and above – Rs. 7200+DA

7th Pay commission Transport Allowance for other Cities

Grade Pay 1800 to 1900 – Rs 900+DA Grade Pay 2000 to 4800 – Rs 1800+DA Grade Pay 5400 and above – Rs. 3600+DA

The existing rates are as under

The Commission notes that TPTA is fully DA-indexed.

The first issue to be considered is whether the rate of Transport Allowance should be the same for all places. There are arguments both for and against this view.

Proponents of the idea argue that petrol prices are almost same everywhere. Moreover, public transport system is better developed in many of the A1/A Class cities, thereby reducing the cost of commuting significantly. The argument, therefore, is that A1/A category places do not need to have a higher rate.

Opponents point out that the categorization of A1/A has been abolished for other purposes (like HRA, CCA) but retained for Transport Allowance. Incidentally, only 13 cities fall under this categorization: six in A1, viz., Hyderabad, Delhi, Bengaluru, Greater Mumbai, Chennai, Kolkata and seven in A, viz., Ahmedabad, Surat, Nagpur, Pune, Jaipur, Lucknow and Kanpur. Recently, six more cities, viz., Patna, Kochi, Kozhikode, Indore, Coimbatore and Ghaziabad have been added to A1/A categories, making it nineteen in all. (Incidentally, vide a recent notification No. 21(2)/2015-E.II(B) dated 06.08.2015, the use of term “A1/A” has been dropped for these nineteen cities. Hence, the Commission will refer to these nineteen cities as “Higher TPTA cities.”). In all these places the commuting distances are far more than in other cities. Moreover, the public transport system is not as developed as it should be in all these places. Therefore, it is argued, the distinction should remain.

After considering both the viewpoints, the Commission is of the view that by and large the commuting distances and associated difficulties involved in Higher TPTA cities are much more compared to other places. Hence, the argument that the distinction should stay is a valid one.

The second issue is whether Transport Allowance should be the same for all personnel posted at the same place. Here the Commission feels that a question of status of employee is involved and hence, complete parity is not possible.

Regarding the optimal rate of Transport Allowance, the Commission notes that the allowance is already fully DA indexed. Therefore, since DA has already reached 119 percent and is likely to rise further before the implementation of our report, the following rates of Transport Allowance are recommended:

Officers in Pay Level 14 and higher, who are entitled to the use of official car, will ave the option to avail themselves of the existing facility or to draw the TPTA at the rate of ₹15,750+DA pm. Differently abled employees will continue to be paid at double rate, subject to a minimum of ₹2,250 plus DA

Fitment Formula is 2.57

This fitment factor of 2.57 is being proposed to be applied uniformly for all employees

Actual hike in the basic pay is 14.29 %

Fitment

5.1.27 The starting point for the first level of the matrix has been set at ₹18,000. This corresponds to the starting pay of ₹7,000, which is the beginning of PB-1 viz., ₹5,200 + GP 1800, which prevailed on 01.01.2006, the date of implementation of the VI CPC recommendations. Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent.

Pay Fixation in the New Pay Structure

5.1.28.  The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57. The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay. If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. A couple of examples are detailed below to make the process amply clear.

5.1.29 The pay in the new pay matrix is to be fixed in the following manner: Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’. Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’. Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level.

Example I

i. For example an employee H is presently drawing Basic Pay of ₹55,040 (Pay in the Pay Band ₹46340 + Grade Pay ₹8700 = ₹55040). After multiplying ₹55,040 with 2.57, a figure of ₹1,41,452.80 is arrived at. This is rounded off to ₹1,41,453.

ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.

iii. In the column for level 13, the figure closest to ₹1,41,453 is ₹1,41,600.

iv. Hence the pay of employee H will be fixed at ₹1,41,600 in level 13 in the new pay matrix as shown below

Example II i. Take the case of an employee T in GP 4200, drawing pay of ₹20,000 in PB-2. The Basic Pay is ₹24,200 (20,000+4200). If there was to be no change in T’s level the pay fixation would have been as explained in Example I above. After multiplying by 2.57, the amount fetched viz., ₹62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at ₹62,200.

ii. However, assuming that the Commission has recommended that the post occupied by T should be placed one level higher in GP 4600. T’s basic pay would then be ₹24,600 (20000 + 4600). Multiplying this by 2.57 would fetch ₹63,222.

iii. This value would have to be located in the matrix in Level 7 (the upgraded level of T).

iv. In the column for Level 7 ₹63,222 lies between 62200 and 64100. Accordingly, the pay of T will be fixed in Level 7 at ₹64,100.

The Commission has designed the new pay matrix keeping in view the vast opportunities that have opened up outside government over the last three decades, generating greater competition for human resources and the need to attract and retain the best available talent in government services. The nomenclature being used in the new pay matrix assigns levels in place of erstwhile grade pay and Table 3 below brings out the new dispensation for various grades pay pertaining to Civil, Defence and MNS.

5.1.13 Although the VI CPC had mentioned that grade pay would be equivalent to 40 percent of the maximum of the pre-revised scale and that the grade pay will constitute the actual fitment, yet the computation varied greatly. After the implementation of recommendations, the difference became more pronounced in Pay Band 4 as compared to the other three pay bands. This resulted in varying fitment factors for various levels and promotional benefits that were perceived to be rather differentiated. The same pattern was discernible in the pension fixation too. 5.1.14 After analysing the issues brought out by various stakeholders, this Commission is suggesting a new pay model that is expected to not only address the existing problems but will also establish a rationalised system which is transparent and simple to use.

5.1.15 To begin with, the system of Pay Bands and Grade Pay has been dispensed with and the new functional levels being proposed have been arrived at by merging the grade pay with the pay in the pay band. All of the existing levels have been subsumed in the new structure; no new level has been introduced nor has any existing level been dispensed with.

5.1.16 The pay structures in vogue, by way of pay scales or pay bands, indicate the definite boundaries within which the pay of an individual could lie. It is however difficult to ascertain the exact pay of an individual at any given point of time. Further, the way the pay progression would fan out over a period of time was also not evident. Since various cadres are designed differently the relative pay progression also varies. The Commission believes that any new entrant to a service would wish to be able to make a reasonable and informed assessment of how his/her career path would traverse and how the emoluments will progress alongside. The new pay structure has been devised in the form of a pay matrix to provide complete transparency regarding pay progression.

5.1.17 The Commission has designed the new pay matrix keeping in view the vast opportunities that have opened up outside government over the last three decades, generating greater competition for human resources and the need to attract and retain the best available talent in government services. The nomenclature being used in the new pay matrix assigns levels in place of erstwhile grade pay and Table 3 below brings out the new dispensation for various grades pay pertaining to Civil, Defence and MNS.

5.1.18 Prior to VI CPC, there were Pay Scales. The VI CPC had recommended running Pay Bands with Grade Pay as status determiner. The Seventh CPC is recommending a Pay matrix with distinct Pay Levels. The Level would henceforth be the status determiner.

5.1.19 Since the existing pay bands cover specific groups of employees such as PB-1 for Group `C’ employees, PB-2 for Group `B’ employees and PB-3 onwards for Group `A’ employees, any promotion from one pay band to another is akin to movement from one group to the other. These are significant jumps in the career hierarchy in the Government of India. Rationalisation has been done to ensure that the quantum of jump, in financial terms, between these pay bands is reasonable. This has been achieved by applying ‘index of rationalisation’ from PB-2 onwards on the premise that with enhancement of levels from Pay Band 1 to 2, 2 to 3 and onwards, the role, responsibility and accountability increases at each step in the hierarchy. The proposed pay structure reflects the same principle. Hence, the existing entry pay at each level corresponding to successive grades pay in each pay band, from PB-2 onwards, has been enhanced by an ‘index of rationalisation’ as shown below in Table 4:

5.1.20 While a carefully calibrated gradation has been adopted as the levels progress upwards, it would be seen that two levels, corresponding to GP 8700 and GP 10000 witness a slight departure.

i. In the existing system there is a disproportionate increase in entry pay at the level pertaining to GP 8700. To address this, the proposed increase at this level has been moderated.

ii. In so far as GP 10000 is concerned, this represents the Senior Administrative Grade, which carries a significantly higher degree of responsibility and accountability. Further, the levels of SAG and above are those which are involved in policy formulation.

iii. Hence, in recognition of the same, the entry pay pertaining to GP 10000 as well as that of HAG and HAG+ has been enhanced by a multiple of 2.72.

iv. The Apex pay of Secretary/equivalent and pay of Cabinet Secretary/equivalent has been fixed by applying indices of 2.81 and 2.78 respectively. The rationalised entry pay so arrived has been used in devising the new pay matrix. 5.1.21 The pay matrix comprises two dimensions. It has a “horizontal range” in which each level corresponds to a ‘functional role in the hierarchy’ and has been assigned the numbers 1, 2, and 3 and so on till 18. The “vertical range” for each level denotes ‘pay progression’ within that level. These indicate the steps of annual financial progression of three percent within each level. The starting point of the matrix is the minimum pay which has been arrived based on 15th ILC norms or the Aykroyd formula. This has already been explained in Chapter 4.2.

5.1.22 On recruitment, an employee joins at a particular level and progresses within the level as per the vertical range. The movement is usually on an annual basis, based on annual increments till the time of their next promotion.

5.1.23 When the employee receives a promotion or a non-functional financial upgrade, he/she progresses one level ahead on the horizontal range.

5.1.24 The pay matrix will help chart out the likely path of pay progression along the career ladder of any employee. For example, it can be clearly made out that an employee who does not have any promotional prospects in his cadre will be able to traverse through at least three levels solely by means of assured financial progression or MACP, assuming a career span of 30 years or more.