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7th Pay Calculator for All Central Government Employee (Projected) w.e.f. 01.01.2016

The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.  As the Commission takes about two years to prepare its recommendations, the award of the seventh pay panel is likely to be implemented from January 1, 2016.

CONCEPT OF SIXTH PAY COMMISSION

The Sixth Pay Commission mainly focused on removing ambiguity in respect of various pay scales and mainly focused on reducing number of pay scales. It recommended for removal of Group-D cadre. The Fifth CPC had compressed many scales. The number of pay scales was reduced from 51 pay scales as on 31.12.1995 to 34 pay scales by the Fifth CPC. In many cases, this led to the promotion and feeder cadres being placed in an identical pay scale. Although Department of Expenditure issued orders that existence of the feeder and promotion posts in the same pay scale will not constitute an anomaly, however, these orders have consistently been rejected by the various courts of this country. The sixth pay Commission, therefore, decided to evolve a new system of pay scales that would effectively address most of the existing anomalies.

To remove stagnation, introduction of running pay bands for all posts in the Government presently existing in scales below that of Rs.26,000 (fixed).

The total number of grades reduced to 20 spread across four distinct running pay bands; one Apex Scale and another grade for the post of Cabinet Secretary/equivalent as against 35 standard pay scales existing earlier. Four distinct running pay bands being recommended – one running band each for all categories of employees in groups ‘B ’and ‘C ’with 2 running pay bands for Group A posts.

Annual increments to be paid in form of three percent of the total of pay in the Pay Band and the corresponding grade pay. The date of annual increments, in all cases, is first of July. Employees completing six months and above in the scale as on July 1 will be eligible.

The revised pay bands have been implemented retrospectively from 1.1.2006. The Fifth CPC also had recommended implementation of the next Pay Commission’s revised pay scales from 1.1.2006. This was also in consonance with demands of a majority of the Associations of Government employees that had sought implementation of Sixth CPC revised pay scales from 1.1.2006.
Minimum salary at the entry level of PB-1 pay band is Rs.7000 (Rs.5200 as pay in the pay band plus Rs.1800 as grade pay). Maximum salary at the level of Secretary/equivalent is Rs.80000. The minimum: maximum ratio 1:12. The increase from V CPC to VI CPC in all grades starts from 2.4 times to 3.7 times. The increase ratio between 5th pay commission and 6th pay commission is 1:3.

And Finaly we are enjoying implemented 6th Pay by Central Government w.e.f. 1st Jan. 2006.

What about seventh pay commission?

Generally every pay commission, before recommending a pay structure, analyzed all the aspects including the economic situation of the country, financial resources of the government, comparison with the public sector, private sector and state government pay structure etc.

Pay Determination is very complicated and sensitive task. Without any doubt every one accepts that this is very challenging task too. In order to determine the new pay structure the pay commission has to go through voluminous data consisting current economic condition, strength of the work force and working condition etc.

If one tries to suggest or comment about 7th pay commission pay scale or about what the seventh pay commission pay scales, it will seem too pre-mature.

However, we observed an interesting factor which is common to all the past pay commission recommendations, particularly in the matter of percentage of increase in the pay. Average 3 times increase in the pay was recommended by each pay commission and it was accepted by government and implemented (except that the rise was only about 2.26 times after 6th CPC for the scales from S4 to S23 and nearly 3 times or more for the higher scales).

Average increase after each Pay Commission - is shown in each of the following tables.

Obviously it is simple thing, we can say it a mathematical coincidence that we have in common in all previous pay commission, but we cannot neglect this. Because it was there, every time it is noticed that the revised pay was approximately three times higher than its pre revised pay. Apart from all the factors which has been used to determine the pay revision, we can use this simple formula ‘common multiplying factor’ to know the 7th pay commission pay scale . If next pay commission prefer to continue the same running pay band and grade pay system for seventh pay commission also, the pay structure may be like the following projected figures given below, using common multiplying factor ‘3’. The Following is only the projected figure using common multiplying factor ‘3’.  On the Basis of multiplying Factor "3", and current Dearness Allowance rate.  We are surely to say on 01.01.2016 the dearness allowance will goes to 123%.

DOWNLOAD 7TH PAY DIFFERENTIAL CALCULATOR WITH 6TH PAY TO CHECK YOUR SALARY AS ON 01.01.2016

More details regarding all 3rd, 4th, 5th and 6th Pay Commission (Click Here)