BENEFITS & DRAWBACKS OF PAY BAND & GRADE PAY SYSTEMINTRODUCED BY SIXTH CENTRAL PAY COMMISSION

SUPPLEMENTARY MEMORANDUM SUBMITTED BY IRTSA

TO SEVENTH CENTRAL PAY COMMISSION

Chapter – 13

BENEFITS & DRAWBACKS OF PAY BAND & GRADE PAY SYSTEMINTRODUCED BY SIXTH CENTRAL PAY COMMISSION

13.1. Benefits& Drawbacks of Pay Band and Grade Pay system introduced by 6th CPC

Benefits & Drawbacks of Pay Band & Grade Pay System Problem of Pay stagnation eliminated Quantum of increment increases exponentially, but the difference is too large at higher levels. Grade Pay decides the hierarchy. Increase of Pay in Pay Band & Grade Pay is not uniform – in favour of higher scales. Arbitrary adoption of formula of 40% of maximum of the merged scales for deciding the Grade Pay. Inadequate rate on annual increment & increment during promotion. Situation of senior promotes getting less pay than Junior direct recruits, is in violation of basic principle of Pay Band system.

i. Problem of stagnation in pay is eliminated, since pay bands are having long spans.

ii. If employees are stagnated at the maximum of any pay band for more than one year, continuously, he/she shall be placed in the immediate next higher pay band without change in the Grade Pay.

iii. Point to point fixation was facilitated by the pay band system, (with one increment in the revised pay cale for every three increments in the pre-revised scale)

• But the employees with more years of service were placed in a disadvantageous position.

iv. Quantum of increment increases exponentially, instead of fixed rate of increment attached to every pay scale

• But the difference became very large at higher levels – thus causing discrimination with those at middle & lower levels.

v. Grade Pay decides hierarchy / seniority of the post.

13.2. Main Draw backs of Pay Band and Grade Pay system introduced by 6th CPC

i. Increase between minimum basic pay of prerevised scale and minimum of every Revised Pay Band is not uniform. There is much greater increase in favour of PB-3 & PB-4.

ii. Arbitrary adoption of formula of 40% of maximum of the merged scales for deciding the Grade Pay – instead of progressive and proportionate rise of Grade Pay from one scale to the next.

iii. Disproportionate rise of pay after Sixth Pay commission – due to grant of disproportionate Higher Grade pays in higher scales (S-24 & above) as compared to S-4 to S-23 (Please see details in the following Table and also the table in next page)

iii. Disproportionate rise of pay after Sixth Pay commission – due to grant of disproportionate Higher Grade pays in higher scales (S-24 & above) as compared to S-4 to S-23 (Please see details in the following Table and also the table in next page)

Pay Band	Minimum of V CPC scale	Minimum of pay band	No. of times increase of Pay after 6th CPC
1	2	3	4 (Col. 3 / 2)
S-1	2550	4440	1.74
PB-1	2750	5200	1.89
PB-2	5000	9300	1.86
PB-3	8000	15600	1.95
PB-4	14300	37400	2.62
			Rise is 3 to 3.37 times at higher levels. (Please see Table at the end of this Chapter)

iv. Rate of annual increment (3% of basic pay) is inadequate.

v. Increment on promotion (difference in grade pay + one additional increment) is inadequate.

vi. Situation of senior promotes getting less pay than Junior direct recruits, is in violation of basic principle of Pay Band system. For example,

a. A JE with five years of service while getting regular promotion from Grade Pay Rs.4200 in PB-2 to Grade Pay Rs.4600 as SSE is fixed at a Basic pay of Rs. 16120 compared to the Direct recruit’s basic pay of Rs.17140.

b. A JE with five years of service while getting promotion (through LDCE) from Grade Pay Rs.4200 in PB-2 to Grade Pay Rs.4800 as AWM/AME/AE is fixed a Basic pay of Rs. 16120 compared to the Direct recruit’s basic pay of Rs.18150.

c. Pay on Promotion should be fixed at least at par with Entry Pay in the Revised Pay Structure for direct recruits.

Table for Para 13.2.iii

DISPROPORTIONATE RISE OF PAY AFTER SIXTH PAY COMMISSION
Pay Band	Pay + GP	V CPC minimum pay	Sixth CPC Scale			No. of times increase from V CPC to VI CPC
			Starting pay in Pay band	Grade Pay	Revised Basic pay
PB-1	5200-20200+1800	2750	5200	1800	7000	2.55
PB-1	5200-20200+1900	3050	5880	1900	7780	2.55
PB-1	5200-20200+2000	3200	6060	2000	8060	2.52
PB-1	5200-20200+2400	4000	7440	2400	9840	2.46
PB-1	5200-20200+2800	4500	8370	2800	11170	2.48
PB-2	9300-34800+4200	5000	9300	4200	13500	2.70
PB-2	9300-34800+4200	5500	10230	4200	14430	2.62
PB-2	9300-34800+4200	6500	12090	4200	16290	2.51
PB-2	9300-34800+4200	6500	12090	4200	16290	2.51
PB-2	9300-34800+4600	7450	13860	4600	18460	2.48
PB-2	9300-34800+4800	7500	13950	4800	18750	2.50
PB-2	9300-34800+5400	8000	14880	5400	20280	2.54
PB-3	15600-39100+5400	8000	15600	5400	21000	2.63
PB-3	15600-39100+5400	9000	16740	5400	22140	2.46
PB-3	15600-39100+5400	9000	16740	5400	22140	2.46
PB-3	15600-39100+6600	10325	19210	6600	25810	2.50
PB-3	15600-39100+6600	10000	18600	6600	25200	2.52
PB-3	15600-39100+6600	10650	19810	6600	26410	2.48
PB-3	15600-39100+7600	12000	22320	7600	29920	2.49
PB-3	15600-39100+7600	12750	23720	7600	29920	2.35
PB-3	15600-39100+7600	12000	22320	7600	29920	2.49
PB-4	37400-67000+8700	14300	37400	8700	46100	3.22
PB-4	37400-67000+8700	15100	39690	8700	48390	3.20
PB-4	37400-67000+8900	15400	39690	8900	48590	3.16
PB-4	37400-67000+8900	16400	39690	8900	48590	2.96
PB-4	37400-67000+10000	14300	37400	10000	47400	3.31
PB-4	37400-67000+10000	18400	44700	10000	54700	2.97
HAG	67000-79000	22400			67000	2.99
HAG+ Scale	775500-80000	22400			75500	3.37
HAG+ Scale	775500-80000	24050			75500	3.14
Apex	80000 (Fixed)	26000			80000	3.08
Cab. Sec.	90000 (Fixed)	30000			90000	3.00

Source: www.staffnews.in

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