Annual Increment Calculation

Being a central government employee he should know the Annual Increment Calculation. Everybody knows that the annual increment will be granted on 1st July of every year after completing the qualifying service of 6 months in a year. But while calculating the increment one should know that how it is rounded off when the amount of increment ends up with fraction.

It is very simple, but everyone should know about the procedure of calculation.

Here it is explained with some illustrations

One increment is equal to 3% (three per cent) of the sum of the Band Pay and the Grade pay and it should be computed and rounded off to the next multiple of ten.

As per the Rule No.13 of CCS(Revised Pay) Rules 2008, “In the case of calculation of increments under the revised pay structure, paise should be ignored, but any amount of a rupee or more should be rounded off to next multiple of 10. To illustrate, if the amount of increment comes to Rs.1900.70 paise, then the amount will be rounded off to Rs.1900; if the amount of increment works out to be Rs.1901, then it will be rounded off to Rs.1910.”

The amount of increment to be added to the existing Band pay.

For example :

an employee’s Band Pay is Rs.10,230 and his Grade pay Rs.2800,
His basic pay = 10,230 + 2,800 = 13,030
His increment will be calculated as follows…
13,030 x 3% = 390.90
Here paise should be ignored and the amount will be rounded off to Rs.390.

Whereas, in another case, if the employee’s Band Pay is Rs.10240 and his grade pay Rs.2800, his basic pay = 10,240 + 2,800 = 13,040
His increment will be calculated as follows…
13,040 x 3% = 391.20
Then it will be rounded off to Rs.400.

Take a note of it and check your amount of increments whether it has been worked out accordingly

Annual Increment in 7th Pay Commission

Annual Increment in Seventh Pay commission remains same. 3% of Basic Pay has been recommended as Annual Increment. But calculation of Annual Increment differs in a way that Pay matrix has been evolved.

In the pre revised Pay, the exact 3 % of the Pay band + Grade Pay would be added in the Pay band on account of Annual Increment on 1st July  of every year.

But here in 7th pay commission there is a possibility to get little more or Less than the three percent of Basic Pay. Because here our Basic Pay has to be moved one stage higher in the same Level. In Pay Matrix , each cell in that particular level is calculated such a way that it is 3% higher than the previous cell. Since the figure is rounded off to nearest hundred, exact three percent increase cannot be expected.

SEE : Calculation for Annual Increment in 7th Pay Commission