Monday, 1 June 2015

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

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