Sunday, 22 November 2015

7th CPC Pension Calculation : Fixation for Pre-2016 Pensioners

7th CPC Pension Calculation : Fixation for Pre-2016 Pensioners

The 7th Pay Commission has recommended the fixation of pension for civil employees including CAPF personnel, who have retired before 01.01.2016, given two formulations with illustrations for fixing of pension. One for the pensioners retired before 2016 and another one is for the pensioners retired before 2006.

And also recommended, the first formulation of fixing the pension may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring level. The first instance the revised pension may be calculated as in the second formulation and the same may be paid as an interim measure. In the event calculation as per the formulation of fixing the pension yields a higher amount the difference may be paid subsequently.

And one more important recommendation of option given to the pensioners for choosing whichever is beneficial to them.

Recommendations on fixing of Pension by 7th CPC : All the civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix.

1.This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.

2. The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.

Illustration on fixation of pension : Case I : Pensioner ‘A’ retired at last pay drawn of Rs.79,000 on 30 May, 2015 under the VI CPC regime, having drawn three increments in the scale Rs.67,000 to 79,000 :


Case II : Pensioner ‘B’ retired at last pay drawn of Rs.4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of Rs.3000-100-3500-125-4500 :


Presenting the 7th CPC Report within the scheduled time and without much anomalies

Presenting the 7th CPC Report within the scheduled time and without much anomalies

One of our genuine reader Mr.M.Dorai says…

The Seventh Central Pay Commission have done an excellent job by presenting the VII CPC Report within the scheduled time and without much anomalies that were vastly found in VI CPC Report. Abolition of Pay Band and Grade Pay System deserve appreciation. Pay matrix have been worked out with brilliance which provide minimum entry scale as well as fitment table for existing employees according to the increments drawn unlike the 3 methods of fixation adopted by VI CPC among new recruits, promotees and existing employees which caused great disparity and anomaly in pay fixation.

The hike granted is also quite substantial which in fact is more than what VI CPC had granted. While the increase granted by VII CPC on pre-revised VI CPC basic pay actually ranges from 32% to 56% of the pre-revised Basic pay, the increase is projected as 15% wrongly by the media including the VII CPC in its comparison table which unnecessarily have been paving the way for resentment and unrest among the central government employees who would not have fully studied the report. While projecting the percentage of increase the VI CPC,had taken into account only the basic pay . Whereas the VII CPC had reckoned D.A. element to project the percentage of increase which gives a wrong picture of around 15% hike.

Therefore there should be no cause for resentment among the central government employees. They should rejoice over the benefits offered by the VII CPC. There is a overall increase of 25% to 40% in the gross emoluments which is more than what they received from the VI CPC. The retention of percentage of pension and percentage of commutation of pension and gratuity of 16.5 months and 300 days EL encashment on retirement shall steeply increase the take home retirement benefits by almost 60 to 70%.

In a nutshell the Chairman and Members of the VII CPC have done a commendable job and fulfilled their mission successfully ensuring justice to all levels of central government employees. Let us hope, the Government of India approve the recommendations without any changes and implement it .

Hats off to the Chairman and Members of the VII Central Pay Commission for presenting such an excellent report unseen in the history of pay commissions constituted so far.

Author: M.DORAI

7th CPC Report: Pay Structure for Defence Forces Personnel – Pay Matrix

7th CPC Report: Pay Structure for Defence Forces Personnel – Pay Matrix

The Defence Services in their Joint Services Memorandum have contended that the emoluments in the Defence Services should stand a fair comparison with what is available in the Civil Services, otherwise the Defence Services will be denied their legitimate share of the available talent pool.

5.2.2 The Commission has devised pay matrices for civil and defence forces personnel, after wide ranging feedback from multiple stakeholders. The common aspects of the two matrices and the unique elements in the defence pay matrix are outlined in the succeeding paragraphs.


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