Sunday 31 May 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 CG 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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