Increment benefit comparison between 5th & 6th Pay Commission – An overview about Central Government Employees’ Increment

Increment benefit comparison between 5th & 6th Pay Commission

Increment benefit comparison between 5th & 6th Pay Commission – An overview about Central Government Employees’ Increment

‘Increment’ is definitely one of the most popular words in the Central Government employee’s dictionary. It is a known fact that each year, without fail, increment brings considerable raise in salary for Central Govt employees. Until about the 5th CPC, there was no major change in the increment system. But, the 6th CPC brought in landmark reforms in the increment system.

Until then, increments were given in the form of a consolidated amount. The 6th CPC recommended that it be calculated on percentage basis. The Central Government ordered that it be calculated at 3% of the employee’s basic pay with effect from 1.1.2006.

The CG employees didn’t realize how useful this was going to be. They thought it wouldn’t amount for much. It was Rs.75 for Rs. 3050 and revised to Rs. 210 for Rs.7000 with simple calculation.

But that was not the end of the story. It was only after a number of years that they realized the true impact of this reform. Let us explain the benefits with an example:

Let us consider the examples of A, and B, two employees who had joined the Central Government services: In five years of getting recruited, B gets a promotion. A gets a promotion three years after B.

On the basis of the 6th CPC :

[BP-Basic Pay, Inc.-Increment, GP-Grade Pay, BP-Pay in Pay Band]

Can you understand the difference now?

In 6th CPC the difference between ‘A’ and ‘B’ will be Rs.70 only, whereas in 5th CPC it will be Rs.300.

The Junior doesn’t have to worry that the senior has a tremendous advantage over him. In the past, the Junior wouldn’t be able to attain the Senior’s basic pay until retirement.

Source: www.90paisa.blogspot.in

6th CPC has the honour of introducing a number of new changes

6th CPC INTRODUCES NEW METHOD OF CALCULATION FOR INCREMENTS

6th CPC has the honour of introducing a number of new changes.

Some of the most important changes introduced by the 6th CPC are GRADE PAY STRUCTURE, 3% INCREMENT, CHILDREN’S EDUCATION ALLOWANCE, and announcing July 1 as INCREMENT DAY FOR ALL. In addition, it also created new regulations to avoid smaller calculations – the method of “ROUNDED OFF TO THE NEXT MULTIPLE OF TEN.”

Even as the 7th CPC is fast approaching, doubts about the Increment Calculation on the basis of the 6th CPC persists, especially about the “ROUNDED OFF TO THE NEXT MULTIPLE OF TEN” method. It is obvious that doubts persist.

In order to avoid decimals, it is a usual practice to round off anything over 50 as 1, and less than 50 as 0. But, according to the Revised Pay Rules 2008 of the 6th CPC, 100.90 is to be taken as 101, and, 101 is to be rounded off as 110.

Let us assume that a person’s increment calculation results in 510.90. That has to be taken as 510. But, if the number is 511, then it has to be taken as 520.

Let us get to the interesting part of this concept:

For those with Band Pay higher than 7440, there are chances that Transport Allowance would rise from Rs. 400 to 800 or from Rs. 600 to 1600. There are possibilities that even 10 Paise could make a big impact.

The difference between Rs. 7430 and Rs. 7440 is huge..!

Many would have found themselves in critical junctures where these small differences would result in differences of Rs. 1000 per month, adding up to Rs. 12000 per year. That could be one of the reasons why some employees are upset with these calculations. The ones who had to lose due to these calculations will remember it for a very long time.

In the beginning of 2009, a few departments didn’t understand these calculations properly. They went about rounding off 50 Paise as Re. 1 and calculated increments on that basis.

Even when 6th CPC tried to remove the impact of Paise in the calculations, it somehow continues to have an effect!

Source: 7thpaycommissionupdates.blogspot.in