The Shocking fact of Pay hike recommended by 7th Pay Commission
The Shocking fact of Pay hike recommended by 7th Pay Commission
The Pay hike recommended by 7th Pay Commssion has been discribed 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.
we will 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 doesnt 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 extar 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 accomadation 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
Deductions
NPS 10% of basic Pay = 70
CGEGIS = 30
Total deductions (700+30) = 730
Net Pay = 17100-730 = 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 = 1800
CGEGIS = 1500
Total deductions = 3300
Net Pay -= 19350-3300 = 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 acn calculate from the above example that how much percentage of increase this Goup ‘C’ Government servants get from this 7th CPC bonanza ?
[ *updated on 9-12-2015 ,
* In pre revised Pay calculation, earlier only 10% of Basic Pay has been taken into account for NPS mandatory deduction. it is now corrected as 10% of Basic Pay + DA @125%
*inconvenience caused is regretted]
[ *updated on 9-12-2015 ,
* In pre revised Pay calculation, earlier only 10% of Basic Pay has been taken into account for NPS mandatory deduction. it is now corrected as 10% of Basic Pay + DA @125%
*inconvenience caused is regretted]
Source: http://www.gservants.com/
Comments
Further, my Transport Allowance was reduced from 3600/- (presently drawing) to 1350/- (As per 7th CPC recommendations).
Since, may Pay in PB reached 7,440/-, I am drawing 1600 TA + DA thereon from 01-07-2015.
But, my new TA will be 1350/- since my Grade Pay is Rs.1,900/- (L2 Scale as per 7th CPC)
As said in the previous example, my Net Salary will also be lesser than what I am drawing now.
How a boss can pay an employee more than him? Just imagine.
U have derived 10% NPS only on basic pay, but it should be calculated on basic+da ie (7000+8750) so the diff will be Rs. 875 from net pay of rs. 16370 - 875 = (15495). however the salary hike is very very low
2. NPS and CGEGIS is the savings by the Govt. Servant. Don't exaggerate the deduction towards savings. Work out gross pay before and after revision and compare.
In fact they carried it to the next level of anomaly by deriving pay levels from existing grade pay.
The correct calculation is as under :-
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 availed Quarter) HRA = Nil
TA = 600 + DA = Rs.1350
Total Gross Pay = Rs. 17100
Deductions
NPS 10% of Basic Pay + Grade pay + DA = 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
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
SALARY AFTER MERGING 100% DA
& AS PER 6TH PAY COMMISSION SALARY AS PER 7TH P C
PAY BAND (ASSUMING BP+GP=27,920)55840 73400(27920x2.62 & THEN
CORRESPONDING TO Matrix level 9
& Index level 12)
GRADE PAY 5400 NIL
HRA 18372(@30%) 17616(@24%)
DA 15310 @25%(ASSUMING NIL(AS 2.62 FACTOR TAKES CARE
125% DA AS ON 1.1.16 ; OF IT)
125%-100% MERGED)
TA 3200 7200
DA ON TA 800 NIL
GROSS SALARY 98922 98216
THUS A LOSS OF Rs706/-
Your payment as per 6th cpc after 01.01.2016
Basic+gradepay = 27920
Da (125%) = 34900
Basic+GP+DA= 62820. (total 1)
Hra (30% of BP+GP)=8376
TA = 3200
DA on TA = 4000
Hra+TA+DA on TA =15576. (total 2)
Total 1+total 2=62820 + 15576 =78396
Payment as per 7th pay
Basic = 27920 x 2.62 =73400 (as per matrix)
DA=0
HRA (24%) = 17616
TA =7200
DA on TA =0
Total =98216
Difference in pay= 98216 -78396 = 19820
Total increase = 19820 (25.28%)