Yearly Increment Calculation – Will the 7th CPC continue the same formula or it brings any changes in to it…!
“Will the 7th CPC continue the same formulae adopted by the 6th CPC, or it brings any changes in to it…!”
Yearly Increment for Central Government Employees from July 2015…
As we are in the last six months for the implementation of 7th Central Pay Commission, let us look at the calculation of yearly increment implemented in the 6th CPC.
The 6th Central Pay Commission which came in to effect from January 2006 and fully implemented with allowances like HRA, CCA, etc., from August 2008, presented a totally different look when compared to previous pay commissions. There were different types of decisions, ideas, information and recommendations in it.
The main change was that, it brought a new type of Pay Scales namely Pay in the Pay Band and Grade Pay. In order to maintain records and for easy calculation, the 6th CPC had fixed a common date for the yearly increment irrespective of their appointment date. In the previous pay commissions, the increment was given to an employee on his/her appointment month. For example, if an employee was appointed in the month of January, his/her increment month will be in the same month every year. But the 6th CPC recommended a common date and the month of July every year was fixed as the increment month for all Central Government Employees. This decision was widely appreciated by everyone. A point in the 6th CPC says that, ‘If an employee has completed six months or more in the revised pay structure as per 6th CPC, as on 1st July, he/she will be given one increment…’
In the 5th CPC, an employee’s pay is fixed in the Scale of Pay. If that individual’s scale of pay is – 3050-75-3950-80-4590, he/she gets yearly increment of Rs.75/- up to Rs.3950/- and Rs. 80/- from Rs.4590/-… If the employee reaches maximum of his pay scale, there is no further increment and get stagnated there. There were such instances of employees with no increment for three to four years.
Whereas in the 6th CPC, to remove stagnation, the commission introduced the running pay bands for all posts. If an employee reaches maximum of his pay band, after one year he will be placed in the next pay band providing him one increment. Thus, he/she moves up to the next pay band. It was a good recommendation as far as employees are concerned.
The 6th CPC also recommended that the yearly increment should not be fixed as in 5th CPC, but 3% of the employee’s basic pay should be calculated and added to the basic pay. The increment so calculated, should be rounded off to the next multiple of 10, ignoring the paise, and added to the pay band. For example, if the amount of increment comes to Rs. 1500.80, then the amount will be rounded off to Rs. 1500/- and if the amount comes to Rs. 1501.00, then it will be rounded off to Rs.1510/-.
As of now, no one can predict what will be the recommendations in the 7th CPC…The Commission in its website, said that it had stopped all type of interactions, meetings etc. and it is ready to submit its report to the Central Government in September 2015…
Will the 7th CPC continue the same formulae adopted by the 6th CPC, or it brings any changes in to it…!
Let’s all hope for the best……!
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