Will 7th Pay Commission recommend the Revised Pay Scale without Grade Pay?

Will 7th Pay Commission recommend the Revised Pay Scale without Grade Pay?

Is there a possibility that the 7th Pay Commission would introduce the new Pay Scale for the Central Government Employees without Grade Pay?

Unionist who had interacted directly with the members of the 7th Pay Commission say that the chances are high. Although it is impossible to confirm this at the moment, all the employee federations have, through their memorandum, requested that the Grade Pay system be avoided this time.

The 6th Pay Commission had included the concept of Grade Pay as part of the basic pay. The intention behind such a concept was never explained. The Commission too didn’t bother to explain why.

So, do we really need Grade Pay Structure? 

What are the advantages? 

What do we lose if we avoid it?

As far as we could see, there was nothing to gain by splitting the basic pay into two.

 

A demand was placed before the 6th Pay Commission that increment be given with each promotion. This demand was stressed by all the employee federations at that time. As a result, the 6th Pay Commission recommended that Promotional Increment be issued with each promotion. All CG Employees federations had an important role to play in the Government’s decision to hike the Pay Commission’s recommended the rate of increment from 2.5% to 3%.

Prior to the 6th Pay Commission, if an employee’s promotion takes him from one pay scale to the next scale, he is then eligible for two promotional increments. If the promotion remained confined within the same pay scale span, then there was no increment. The federations highlighted this situation while making its demand. Also, an average employee hardly gets three promotions in his career, before retirement. In terms of monetary benefits, there was nothing much.

There might not be any relationship between Grade Pay and Promotional Increment, but there is definitely no connection between the Grade Pay and the Annual Increment.

From the day it was introduced, Grade Pay had only created pay anomalies for the employees. The system of Departmental Hierarchy, which had been in place for years, was divided into Promotional Hierarchy and Grade Pay Hierarchy. This was the main culprit. Grade Pay was also responsible for the formation of separate committee for MACP, like the National Anomaly Committee.

Those who were promoted from Rs. 2800 to Rs.4200 might have called Grade Pay a wonderful concept. But Grade Pay structure had nothing to do with it. Credit belonged to the system of Merger of Grades. Since 5000, 5500 and 6500 were merged into one category, the Grade Pay of 6500 was given to 5000 and 5500. This made an increase of 1400 possible with a single promotion from 2800 to 4200. As far as Grade Pay was concerned, this was a 50% hike.

The revelations were surprising indeed. The steep increase of 50% was confined to just one instance.

GRADE PAY	DIFFERENCE IN AMOUNT	DIFFERENCE IN %
1800
1900	100	5.56%
2000	100	5.26%
2400	400	20.00%
2800	400	16.67%
4200	1400	50.00%
4600	400	9.52%
4800	200	4.35%
5400	600	12.50%
6600	1200	22.22%
7600	1000	15.15%
8700	1100	14.47%
10000	1300	14.94%
12000	2000	20.00%

BASIC PAY	DIFFERENCE IN AMOUNT	DIFFERENCE IN %
2750
3050	300	10.91%
3200	150	4.92%
4000	800	25.00%
4500	500	12.50%
5000	500	11.11%
5500	500	10.00%
6500	1000	18.18%
7450	950	14.62%
7500	50	0.67%
8000	500	6.67%
9000	1000	12.50%
10000	1000	11.11%
10325	325	3.25%
10650	325	3.15%
12000	1350	12.68%
12750	750	6.25%
14300	1550	12.16%
15100	800	5.59%
16400	1300	8.61%
18400	2000	12.20%
22400	4000	21.74%
24050	1650	7.37%
26000	1950	8.11%
30000	4000	15.38%

Will this continue with the 7th Pay Commission too?

Source: 90paisa.org