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Saturday, 21 November 2015

7th Pay Commission Basic Pay Calculation Method in brief with illustration

7th Pay Commission Basic Pay Calculation7th Pay Commission Basic Pay Calculation Method in brief with illustration

Know Easy steps to Calculate your 7th Pay Commission New Pay Scale

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
The new pay matrix for civilian employees 

7th cpc pay matrix

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
7th cpc TPTA Transport Allowance
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

Source: www.gservants.com
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7th CPC: Highlights of 7th Central Pay Commission Recommendations

7th CPC: Highlights of 7th Central Pay Commission Recommendations

7th Pay Commission Report



Recommended Date of implementation: 01.01.2016

Minimum Pay: Based on the Aykroyd formula, the minimum pay in government is recommended to be set at Rs.18,000 per month.

Maximum Pay: Rs.2,25,000 per month for Apex Scale and Rs.2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

Financial Implications:The total financial impact in the FY 2016-17 is likely to be Rs.1,02,100 crore, over the expenditure as per the ‘Business As Usual’ scenario. Of this, the increase in pay would be Rs.39,100 crore, increase in allowances would be Rs. 29,300 crore and increase in pension would be Rs.33,700 crore.
Out of the total financial impact of Rs.1,02,100 crore, Rs.73,650 crore will be borne by the General Budget and Rs.28,450 crore by the Railway Budget.

In percentage terms the overall increase in pay & allowances and pensions over the ‘Business As Usual’ scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent.

The total impact of the Commission’s recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay+Allowances+ Pension) to GDP compared to 0.77 percent in case of VI CPC.

New Pay Structure: Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.

Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.
Annual Increment: The rate of annual increment is being retained at 3 percent.

Modified Assured Career Progression (MACP):Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”.

The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service.

No other changes in MACP recommended.

Military Service Pay (MSP): The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows:

Military Service Pay


Short Service Commissioned Officers: Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. They will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute.

Lateral Entry/Settlement: The Commission is recommending a revised formulation for lateral entry/resettlement of defence forces personnel which keeps in view the specific requirements of organization to which such personnel will be absorbed. For lateral entry into CAPFs an attractive severance package has been recommended.

Headquarters/Field Parity: Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.

Cadre Review: Systemic change in the process of Cadre Review for Group A officers recommended.
Allowances: The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.

Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance.

The current Siachen Allowance per month and the revised rates recommended are as follows:

Risk and Hardship Allowance

This would be the ceiling for risk/hardship allowances and there would be no individual RHA with an amount higher than this allowance.

House Rent Allowance: Since the Basic Pay has been revised upwards, the Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

In the case of PBORs of Defence, CAPFs and Indian Coast Guard compensation for housing is presently limited to the authorised married establishment hence many users are being deprived. The HRA coverage has now been expanded to cover all.

Any allowance not mentioned in the report shall cease to exist.

Emphasis has been placed on simplifying the process of claiming allowances.

Advances:All non-interest bearing Advances have been abolished.

Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs.25 lakhs from the present Rs.7.5 lakhs.

Central Government Employees Group Insurance Scheme (CGEGIS): The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:

Central Government Employees Group Insurance Scheme


Medical Facilities:Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended.

Meanwhile, for the benefit of pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis.

All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.

Pension: The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.

The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix.

This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent.

In the case of defence forces personnel this amount will include Military Service Pay as admissible.
Fifty percent of the total amount so arrived at shall be the new pension.

An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension.

The pensioner will get the higher of the two.

Gratuity: Enhancement in the ceiling of gratuity from the existing Rs.10 lakh to Rs.20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.

Disability Pension for Armed Forces: The Commission is recommending reverting to a slab based system for disability element, instead of existing percentile based disability pension regime.

Ex-gratia Lump sum Compensation to Next of Kin: The Commission is recommending the revision of rates of lump sum compensation for next of kin (NOK) in case of death arising in various circumstances relating to performance of duties, to be applied uniformly for the defence forces personnel and civilians including CAPF personnel.

Martyr Status for CAPF Personnel: The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel.

New Pension System: The Commission received many grievances relating to NPS. It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.

Regulatory Bodies: The Commission has recommended a consolidated pay package of Rs.4,50,000 and Rs.4,00,000 per month for Chairpersons and Members respectively of select Regulatory bodies. In case of retired government servants, their pension will not be deducted from their consolidated pay. The consolidated pay package will be raised by 25 percent as and when Dearness Allowance goes up by 50 percent. For Members of the remaining Regulatory bodies normal replacement pay has been recommended.

Performance Related Pay: The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes.
There are few recommendations of the Commission where there was no unanimity of view and these are as follows:

The Edge: An edge is presently accordeded to the Indian Administrative Service (IAS) and the Indian Foreign Service (IFS) at three promotion stages from Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and the NFSG. is recommended by the Chairman, to be extended to the Indian Police Service (IPS) and Indian Forest Service (IFoS).

hri Vivek Rae, Member is of the view that financial edge is justified only for the IAS and IFS. Dr. Rathin Roy, Member is of the view that the financial edge accorded to the IAS and IFS should be removed.
Empanelment: The Chairman and Dr. Rathin Roy, Member, recommend that All India Service officers and Central Services Group A officers who have completed 17 years of service should be eligible for empanelment under the Central Staffing Scheme and there should not be “two year edge”, vis-à-vis the IAS. Shri Vivek Rae, Member, has not agreed with this view and has recommended review of the Central Staffing Scheme guidelines.

Non Functional Upgradation for Organised Group ‘A’ Services: The Chairman is of the view that NFU availed by all the organised Group `A’ Services should be allowed to continue and be extended to all officers in the CAPFs, Indian Coast Guard and the Defence forces. NFU should henceforth be based on the respective residency periods in the preceding substantive grade. Shri Vivek Rae, Member and Dr. Rathin Roy, Member, have favoured abolition of NFU at SAG and HAG level.

Superannuation: Chairman and Dr. Rathin Roy, Member, recommend the age of superannuation for all CAPF personnel should be 60 years uniformly. Shri Vivek Rae, Member, has not agreed with this recommendation and has endorsed the stand of the Ministry of Home Affairs.
The full report is available in the website, http://7cpc.india.gov.in.

PIB
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7th Pay Commission Standard Pay Scale : Pay matrix with distinct Pay Levels

7th Pay Commission Standard Pay Scale : Pay matrix with distinct Pay Levels  

Seventh CPC is recommending a Pay matrix with distinct Pay Levels instead of Running Pay bands and Grade Pay.
 
7th-cpc-pay-structure
The new pay matrix for civilian employees


Source:  http://7cpc.india.gov.in/
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Multiplication Factor / Fitment Formula recommended by 7th Pay Commission

Multiplication Factor / Fitment Formula recommended by 7th Pay Commission

Fitment Formula 7th CPC


7th CPC recommended the Multiplication Factor proposed is 2.57

Fitment : The starting point for the first level of the matrix has been set at Rs. 18,000. This corresponds to the starting pay of Rs.7,000, which is the beginning of PB-1 viz., Rs.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.

Source: 7thpaycommissionnews.in
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7th CPC Pay Fixation with examples

7th CPC Pay Fixation with examples

Pay Fixation in the New Pay Structure : 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.

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 Rs.55,040 (Pay in the Pay Band Rs.46340 + Grade Pay Rs.8700 = Rs.55040). After multiplying Rs.55,040 with 2.57, a figure of Rs.1,41,452.80 is arrived at. This is rounded off to Rs.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 Rs.1,41,453 is Rs.1,41,600.

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

Pay Matrix



As part of its recommendations if Commission has recommended any upgradation or downgrade in the level of a particular post, the person would be placed in the level corresponding to the newly recommended grade pay.

Example II

i. Take the case of an employee T in GP 4200, drawing pay of Rs.20,000 in PB-2. The Basic Pay is Rs.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., Rs.62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at Rs.62,200.

Pay Matrix 7th CPC



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 Rs.24,600 (20000 + 4600). Multiplying this by 2.57 would fetch Rs.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 Rs.63,222 lies between 62200 and 64100. Accordingly, the pay of T will be fixed in Level 7 at Rs.64,100.

7CPC PAY MATRIX

Authority: http://7cpc.india.gov.in/
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