7th pay recommendation Analysis

Hello friends,

We are sharing with you analysis of 7 th pay recommendation by Rama Nujam sir.hope you like his efforts.

What is the summary of 7th Pay Commission for the Group ‘B’ and Group ‘C’ Services.

Lets see the highlights of the 7th CPC first….
1. Intelligence Bureau ACIO-II Grade pay is increased from 4200 to 4600.
2. CSS Assistant GP is decreased from 4600 to 4200.
3.  Dress Allowance introduced in place of Uniform allowance for Central Excise Inspectors and POs and it will be 10,000 per year in place of 5000 for starting year and 3500 rs per year from second year of maintenance charge.
4. CBI SI GP increased from 4200 to 4600 (Made it highest salaried job of CGL due to 13 months salary)
5. GP of Inspector of Post is increased from 4200 to 4600.
6.  No change in grade pay of Auditor, Central Excise Inspector, ITI or any other post comes under CGL. 
7. HRA is reduced from 30%, 20%, 10% to 24%, 16%, 8% for X, Y  and Z category cities respectively.
8.  Deduction for Central Government Employees’ Group Insurance Scheme (CGEGIS) is increased from 60 rs and 30 rs to 2500 rs and 1500 rs for Group B and Group C employees.
9. 10 ELs will be given in place of 20 Half Pay Leaves(for vacational staff only).
10. Child Education Allowance increased from 15000 to 22500 per year.
11. IPS and IFoS services will also be given same facilities like two year edge etc. which were only entitled for IAS services. (Not related to most of the people but very interesting point).
12.  Dearness allowance from 01.01.2016 will be 0%.
13. 14.2 % hike is given after merging of DA in basic ..(in 6th pay commission it was 54%)
14. The method adopted is (Basic+125% DA of Basic)*1.1429=2.57

Now what will be the salary after implementation of 7th CPC:-

• Salary of a newly joined 2400 GP employee in X city is …. Basic=25500, Transport allowance= 3600, DA=0 rs, HRA = 25500*0.24=6120, DA on TA =0 Rs, Deductions…. GPF (NPS)= 2550, CGIGES= 1500, CGHS= 125 (I am assuming existing rate, no new rates were defined )

Gross Salary in X city= 25500+3600+6120=35200

Net salary in X City= 35200-2550-1500-125=31,045 Rs

Salary of a newly joined 2400 GP in Y Class City

Gross = 25500+1800(Transport allowance in non high TAPA City)+4080(25500*0.16)=31380

Net= 31380-2550-1500-125=27,205 Rs.

Salary of a newly joined 2400 GP in Z Class City

Gross = 25500+1800(Transport allowance in non high TAPA City)+2040(25500*0.08)=29,340

Net= 29340-2550-1500-125=25,165 Rs.

• Salary of a newly joined 2800 GP employee in X city is ..

Gross= 29200 (Basic)+3600+ 7008 (29200*0.24)=39,808

Net= 39808-2920-1500-125= 35,263 rs

Salary of a newly joined 2800 GP employee in Y city is ..

Gross= 29200 +1800+ 4672 (29200*0.16)=35,672

Net= 37,472-2920-1500-125= 31,127 rs

Salary of a newly joined 2800 GP employee in Z city is ..

Gross= 29200 +1800+ 2336 (29200*0.08)=33,336

Net= 33,336-2920-1500-125= 28,791 rs

• Salary of a newly joined 4200 GP employee in X city is ..

Gross= 35400 (Basic)+3600+ 8496(35400*0.24)=47,496

Net= 47496-3540-2500(CGIGES)-225(CGHS)= 41,231 rs

Salary of a newly joined 4200 GP employee in Y city is ..

Gross= 35400 (Basic)+1800+ 5664(35400*0.16)=42,864

Net=42,864-3540-2500(CGIGES)-225(CGHS)= 36,599 rs

Salary of a newly joined 4200 GP employee in Z city is ..

Gross= 35400 (Basic)+1800+ 2832(35400*0.08)=40,032

Net=40032-3540-2500(CGIGES)-225(CGHS)= 33,767 rs

• Salary of a newly joined 4600 GP employee in X city is ..

Gross= 44900 (Basic)+3600+ 10,776 (44900*0.24)=59,276

Net= 59,276-4490-2500(CGIGES)-325(CGHS)= 51,961 rs

Salary of a newly joined 4600 GP employee in Y city is ..

Gross= 44900 (Basic)+1800+ 7,184 (44900*0.16)=53,884

Net= 53,884-4490-2500(CGIGES)-325(CGHS)= 46,569 rs

Salary of a newly joined 4600 GP employee in Z city is ..

Gross= 44900 (Basic)+1800+ 3592 (44900*0.08)=50,292

Net= 50,292-4490-2500(CGIGES)-325(CGHS)= 42,977 rs

My take on 7th CPC… People are making so much hue and cry after the submission of report… most of the people are saying that it is the worst hike given by government… I firmly endorse their point … while many are saying that 14 % given by commission is more than enough… This 14 % is seems okk for today only…. what about after  5-6 or 10 years… lets take the example of 6th pay commission…6th pay commission has given hike of 54% in salary ..what if 6th pay commission had given 14% hike in 2006… the salary of direct Inspectors would have been around 29k in X and in Z city 24 K… think a single time how you could afford your family in 24 K and being an inspector (to maintain status) .. and in 29 K in Mumbai where your expense goes up to 35-40 K…. so this hike is not enough at all.. second some pro-government people are saying that the pay commission has no political interference … ok you may be right byut is the report would have been same if congress were in power..or this report will be submitted in 2018 (just before election) … if the pay commission was apolitical then why Congress government shown so much haste in the formation of Commission.. Further people living in metro cities specially in Mumbai were expecting increase in HRA because HRA given by government is not enough to live in Mumbai… but strangely government has reduced it to 24%… means government will now start to liven in Chawls or other cheap and low class accommodations…. And the bone of contention is 2500 Rs deduction of CGIGES… how can government increase this deduction from 60 rs to 2500 rs (42 times)… this is really absurd and it will be opposed strongly for sure…. The price of Daal to calculate minimum salary is taken 100 Rs per kg.. I have searched whole market but I didn’t find it below 150 rs /kg……Moreover the pay commission emphasized in every point that the main motto of Pay Commission is to make pairty in all central government jobs… okkk…. Commission has concluded that the basic of Group C and Group D employees is deduced by this method (Basic+125%DA on Basic)*1.1429=2.57 times of basic… But from where the Multiplication factor for Group B employees deduced to 2.62 and in increasing order it is 2.81 for the highest … Commission has explained that the Higher level officers are part of policy formation ..so their hike should be high…. It means lower officers has no right for hike… my father is in 2800 GP and he is more dedicated for his work than me… but what is his fault or my goodness that I got 0.05 more hike than him… The simple formula of Commission is give the goodies to higher officers …so they don’t oppose for anything .. .and left the lower employees on their fate … .it reminds me the colonial system… British people used to give monthly expenditure to Indian King and borne other expenses of him and exploited the poor people.. because the king cant oppose the Britishers….and what we can expect in a country where Corporate tax on the millionaires is abolished and Service tax on common man is hiked abruptly and nobody oppose that… In my opinion it is dawn of government employee’s dark days in other words “Ache Din”
PS:- Don’t take my FAQ as anti government…. I just speak my heart out…..and sorry for pathetic english..

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