The Shocking fact of Pay hike recommended by 7th Pay Commission

Pay commission said 14.29 % Hike in Pay is recommended, Media said central government employees will get 23.55%  hike in salary including allowances. [See: How 23.55% of hike in Pay and Allowances arrived from 7th Pay Commission recommendation]

The Pay hike recommended by 7th Pay Commission has been described as Bonanza by Media

we will find out the real fact about the so called Bonanza..!

Let us know 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 hs availed Quarter) HRA  =  Nil
TA = 600 + DA  =  Rs.1350
Total Gross Pay    =  Rs. 17100

Mandatory Deductions

NPS 10% of [Basic Pay + DA @125%] =  1575
CGEGIS   =   30

Total deductions   (1575+30) = 1605
Net Pay = 17100-1605   =  15495

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

Mandatory Deductions

NPS = 1800

CGEGIS = 1500

Total deductions = 3300

Net Pay -= 19350-3300 = 16050

Before 7th Pay Commission his Net pay = Rs. 15495
After 7th Pay commission his Net Pay  = Rs.  16050

He will be drawing Rs.555 higher 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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14 thoughts on “The Shocking fact of Pay hike recommended by 7th Pay Commission”

  1. 7cpc panel has taken extra time to study how to crush Group C & D employees and How to pay more for officers who are doing nothing other then signature.

  2. I have been working since last 6 years and 4 months in the pay scale of 9300-34800 + Grade Pay Rs. 4600/- .
    Currently my pay is 16620 (Pay 12020 + GP Rs. 4600)
    After multiplying with 16,620 X 2.62 = Rs. 43,544/- my new basic pay is 43544.

    As per the recommended Pay Matrix table my new basic pay will Rs. 44900/- which is proposed to be given to a new entrant 17140 X 2.62 = 44900). When my new pay is equal to the new entrants, where is the difference pay for my 6 years seniority??

    Please help me in this issue.

    It appears that there is a problem in Pay Matrix table.

  3. Recommendations of Seventh CPC is clueless in many places. They have taken extra time to finalize the report but does not really study the overall structure. The recommendations are discrete and not an intigrated study. The basic aim of CPC is totally missing here.

    One example is as under:
    Seventh CPC did not recommend Technical allowance to Civilian Engineers. While Technical allowance is given to Service Engineers in Defence. The reason was given as recruitment rule of Military personnal is different from civilian personnal.

    However OROP has been recommended for both Civilian and Military personnal despite retirement rule of Military personnal is different from civilian personnal.

    Clearly the recommendations are not from organisations point of view; these are the personnal view of SCPC members. These views may be termed as DADAGIRI.

  4. Hi, CPF (under NPS) is calculated on 10% of (Basic Pay + Grade Pay + DA), not only on (BP + GP). Thanks.

  5. Dear Admin,I convey my kudos to the person who put the real picture of so called pay hike & the irresponsible section of media which use to make such a hype of baseless things.
    Very good explanation with examples!
    Great !!

  6. MAHESH UBHAYAKAR

    Dear gservants, We Pensioners, who have no allowances, are told the raise is 24% whereas it is only 14.2%. Moreover, all the newspapers have reported it simultaneously meaning there was some kind of press release. You should find out who is responsible for the release and how 24%. Kindly respond.

  7. Dr.Sreenivasa BP

    I think you have done wrong calculation. This person has already joined the services on 1st Aug, 2015, he will be upgraded to GP 1900 for calculation of his new pay. so,
    5200+1900=7100.
    7100×2.57=18247
    So he will be put into 19900 (pay matrix in the upgraded GP of 1900)
    Now add TA 1350. So total will be 19900+1350=21250.
    Deduction=3300.
    So net pay 21250-3300= 17950

    Before 7th Pay Commission his Net pay = Rs. 16370
    After 7th Pay commission his Net Pay = Rs. 17950

    He will be drawing Rs.1580 more in 7th Pay Commission revised Pay than from his Sixth CPC pay

  8. Its really strange that 7th CPC has stated that annual increment will be 3% ? Is it so? See the examples below:

    1. Level 1 = 18000 x 3 + 540 = 180540 but it is 18500
    2. Level 7 = 44900 x 3 = 1347 = 46247 but it is 46200
    3. Level 8 = 47600 x 3 = 1428 = 49028 but it is 49000
    4. Level 11 = 66700 x 3 = 2031 = 69731 but it is 69700
    5. Level 13A = 131100 x 3 = 3933 = 135033 but it is 135000
    6. Level 14 = 144200 x 3 = 4326 = 148526 but it is 148500

    This is at the Index no. 2 and even on alternate index levels less than 3% increment has been added.

    This is really not good.

    Further, as per recommendations of 7th CPC the Non-Functional Upgradation for Section Officers and Private Secretary has been downgraded to Level 9 (GP 5400 – PB-2).

    It is strange to see that although it is downgraded to PB-2 5400 GP; it is Rs. 200 less if it is granted in PB-3 GP 5400 (Level 10) : it can be understood as follows:

    My pay has been fixed at Rs. 70000 as on 1.1.2016
    Annual increment – 72100 w.e.f. 1.7.2016
    NFU will be granted from 28.12.2016
    Pay will be fixed at 72100 + 3% increment of Rs. 2200 = 74300
    Pay will be fixed in NFU as follows:
    = Rs. 75600 if it is in Level 9; and
    = Rs. 75400 if it is in Level 10
    Means Rs. 200 less; and if I will continue in the Level 10 for another 6 years; it will be a loss of 200 x 6 = Rs. 1200 which will be cumulative life long, means I will be getting lesser pension also.

    Can Level 10 be upgraded proportionately so that this type of loss could be avoided.

    7th CPC or Hon’ble Finance Minister may kindly at least rectify these type of genuine problems along with other changes.

  9. kshounish chandra choudhury

    Dear Sir,
    Sub: Fixation of pension of old viz pre 1996 pensioners as per Pay Matrix recommended by 7th CPC
    The following anomaly has come to my notice while going through the fixation method recommended by 7th CPC. The following example will explain my comprehension.
    Two Gentlemen Mr. ABC and Mr. DEF had been promoted to level 11 (as per Pay Matrix of 7th CPC) in April/1980. On sept/87 Mr. ABC had been promoted to level 12 and retired on 31/5/1989 after getting one increment. Mr. DEF did not get further promotion and retired also on 31/5/1989.
    Now so far I have understood about the new pension fixation recommended by 7th CPC the notional pay of Mr. ABC will be fixed in level 12 after granting one increment to Rs.81200.00 and hence pension will be fixed to Rs.40600.00
    Notional pay of Mr. DEF will be fixed in level 12 after granting him nine increments to Rs.88400.00 and pension will be fixed at Rs.44200.00
    I would request you to kindly examine the above and if my conception is correct, then kindly take up the matter with authority concerned so that this anomaly can be eliminated. In my opinion it can be eliminated only by fixing the notional pay of Mr. ABC in level 11 and then fixing his notional pay in level 12 and then fixing the pension.
    I am an old man of 84 and will be grateful if you kindly acknowledge receipt of this letter.
    Thanking you.
    Yours faithfully,
    Kshounish Chandra Choudhury
    Email: [email protected]

  10. This 7th CPC reduced to a merging committee.. nothing other than simple merging of DA with the basic items, it never gone through the systematic study on wage calculation.. On Traveling allowance, up to level 8 employees have to find roadside slum huts while their higher ups adjust in lodgings on official tours.. 7th CPC fully enjoyed its normal and extended tenure with all facilities, keeping government employees in fools paradise… already there is huge shortage of staff and large number of staff to run the government machinery are from bellow level 8.. pay scales up to level 8 not at all addressed properly.. the reasons and factors cited by this CPC to conclude pay fixation never reaches or nears the present values.. if you through peanuts, gets monkeys only…

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