Showing posts with label Increment Calculation. Show all posts
Showing posts with label Increment Calculation. Show all posts

Monday, 21 December 2015

Dont take leave on 1st January 2016 – Due to implementation of 7th Pay Commission Recommendations

Dont take leave on 1st January 2016 – Due to implementation of 7th Pay Commission Recommendations

Is attendance compulsory for Central Government employees on the implementation day (01.01.2016) of the 7th Pay Commission recommendations?

Central Government employees are wondering if there will be any consequences of taking leave on January 1, 2016, the date of implementation of the 7th Pay Commission report.

The recommendations of the 7th Pay Commission regarding the salaries and perks for the Central Government employees will come into effect from January 1, 2016 onwards. Many are curious to find out the connection between the date of implementation of 7th CPC and reporting to work on the day.

Normally, the date of joining work, date of getting the promotion, date of receiving the increments, transfer date, and retirement dates are very important for a Central Government employee. In the average service period of a Central Government employee, he/she is likely to witness two or three Pay Commissions. Keeping this in mind, it would be better to not absent oneself on January 1, 2016.

“All Central Government employees are advised to report to work on January 1, 2016 (Friday).”

“This is especially so for those who are on long leave. It will help them avoid a lot of problems in future.”

“If 01.01.2016 is announced as a holiday, it will be better to report to work the next day.”

If the recommendations of the 7th Pay Commission are going to be implemented from 01.01.2016 onwards, then the employees will have to come to work that day to accept these recommendations. If he/she is absent on the day, then the day they return to work will be treated as the day they had accepted the new recommendations.


Thursday, 9 July 2015

Yearly Increment for CG Employees from July 2015…

Yearly Increment Calculation – Will the 7th CPC continue the same formula or it brings any changes in to it…!

“Will the 7th CPC continue the same formulae adopted by the 6th CPC, or it brings any changes in to it…!”

Yearly Increment for Central Government Employees from July 2015…

As we are in the last six months for the implementation of 7th Central Pay Commission, let us look at the calculation of yearly increment implemented in the 6th CPC.

The 6th Central Pay Commission which came in to effect from January 2006 and fully implemented with allowances like HRA, CCA, etc., from August 2008, presented a totally different look when compared to previous pay commissions. There were different types of decisions, ideas, information and recommendations in it.

The main change was that, it brought a new type of Pay Scales namely Pay in the Pay Band and Grade Pay. In order to maintain records and for easy calculation, the 6th CPC had fixed a common date for the yearly increment irrespective of their appointment date. In the previous pay commissions, the increment was given to an employee on his/her appointment month. For example, if an employee was appointed in the month of January, his/her increment month will be in the same month every year. But the 6th CPC recommended a common date and the month of July every year was fixed as the increment month for all Central Government Employees. This decision was widely appreciated by everyone. A point in the 6th CPC says that, ‘If an employee has completed six months or more in the revised pay structure as per 6th CPC, as on 1st July, he/she will be given one increment…’

In the 5th CPC, an employee’s pay is fixed in the Scale of Pay. If that individual’s scale of pay is – 3050-75-3950-80-4590, he/she gets yearly increment of Rs.75/- up to Rs.3950/- and Rs. 80/- from Rs.4590/-… If the employee reaches maximum of his pay scale, there is no further increment and get stagnated there. There were such instances of employees with no increment for three to four years.

Whereas in the 6th CPC, to remove stagnation, the commission introduced the running pay bands for all posts. If an employee reaches maximum of his pay band, after one year he will be placed in the next pay band providing him one increment. Thus, he/she moves up to the next pay band. It was a good recommendation as far as employees are concerned.

The 6th CPC also recommended that the yearly increment should not be fixed as in 5th CPC, but 3% of the employee’s basic pay should be calculated and added to the basic pay. The increment so calculated, should be rounded off to the next multiple of 10, ignoring the paise, and added to the pay band. For example, if the amount of increment comes to Rs. 1500.80, then the amount will be rounded off to Rs. 1500/- and if the amount comes to Rs. 1501.00, then it will be rounded off to Rs.1510/-.

As of now, no one can predict what will be the recommendations in the 7th CPC…The Commission in its website, said that it had stopped all type of interactions, meetings etc. and it is ready to submit its report to the Central Government in September 2015…

Will the 7th CPC continue the same formulae adopted by the 6th CPC, or it brings any changes in to it…!

Let’s all hope for the best……!

Sunday, 17 May 2015

FR & SR Rules – What says Rules regarding increment..!

FR & SR Rules – What says Rules regarding increment..!

What says FR & SR Rules regarding increment..!

Increment :
The annual increase in pay is drawn as a matter of course from the 1st of July every year, except when it is withheld as a statutory punishment. If a Government employee is on leave or is availing joining time on the 1st July, the increased pay will be drawn only from the date on which he resume duty and not from the first of July…

The annual increment will be 3% of total pay in the running pay band and corresponding grade pay rounded off to next multiple of 10. While rounding off, paisa would be ignored but any amount of a rupee or more would be rounded off to next multiple of 10.

The annual increment in pay will be drawn as a matter of course from the first of July every year, except when it is withheld as a statutory punishment. If a govt. servant is on leave or is availing joining time on the first of July, the increased pay will be drawn only from the date on which he resumes the duty and not from first of July.

The officiating service in a higher grade shall count for increments in an officer and other employee’s substantive grade as well as in the higher grade in which he is officiating and, if there is an intermediate grade between the two in which he would have officiated had he not been appointed to officiate in the higher grade, also in the intermediate grade, but the period during which an officer and other employee is on leave without pay shall not count for increment unless so authorized by the Authority for reasons to be recorded in writing.

The sanction to draw increments shall be given by the competent authority:
Provided that no increment shall be withheld except as a disciplinary measure under these regulations and each order withholding an increment shall state the period for which it is withheld and also whether the postponement shall have the effect of postponing future increments.

Saturday, 16 May 2015

Annual increment for Central Government employees as per 6th CPC..?

Calculation of annual increment for Central Government employees as per 6th CPC..?

We explain with some illustrations…
The increment is an increase in pay for each year in a particular date. As per 6th CPC the annual increment has been granted on 1st July of every year and the qualifying period for earning an increment is six months on 1st July. One increment is equal to 3% (three per cent) of the sum of the pay in the pay band and the grade pay will be computed and rounded off to the next multiple of ten.

As per the Rule No.13 of CCS(Revised Pay) Rules 2008, “In the case of calculation of increments under the revised pay structure, paise should be ignored, but any amount of a rupee or more should be rounded off to next multiple of 10. To illustrate, if the amount of increment comes to Rs.1900.70 paise, then the amount will be rounded off to Rs.1900; if the amount of increment works out to be Rs.1901, then it will be rounded off to Rs.1910.”

And finally the increment amount will be added to the existing pay in the pay band.

For example :

An employee’s pay in the pay band is Rs.10,230 and his grade pay Rs.2800, his basic pay = 10,230 + 2,800 = 13,030

His increment will be calculated as follows…
13,030 x 3% = 390.90
after rounded off to ten, it will be 390 only.

Whereas, the another employee’s pay in the pay band is Rs.10240 and his grade pay Rs.2800, his basic pay = 10,240 + 2,800 = 13,040
His increment will be calculated as follows…
13,040 x 3% = 391.20
then it will be rounded off to Rs.400.

Source: CGEN.in

Friday, 15 May 2015

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!

Monday, 13 April 2015

Nobody is in a position to come out with the details of the 7th CPC


Nobody is in a position to come out with the details of the 7th CPC 

“The recommendations of the 7th CPC which has to be implemented from the 1st of January 2016. But till now, a crystal clear picture has not emerged about the new pay scales and pay structures, and the date of submission to the government. Nobody is in a position to come out with the details of the 7th CPC.”

Annual Increment for Central Government Employees

Last week, the Central Government has issued orders regarding the release of an additional 6% Dearness Allowance to the central government employees and 6% Dearness Relief to the pensioners from 1st January 2015. It turned out to be a sigh of relief for all of them as the government was a bit late in announcing the DA. Now the total DA stands at 113% of the basic pay. The employees will be paid arrears for the months of January, February and March. As for now, expectations and excitement are temporarily over….

The next episode to begin is the Annual Increment, which has to be given in the month of July every year as recommended by the 6th Central Pay Commission. From July, central government employees are entitled to receive 3% of their basic pay as annual increment. As we are aware that 6th CPC had given more financial benefits than previous pay commissions, by introducing various changes in the pay structures and pay scales. The calculations regarding annual increment were also changed. In the past, the annual increment was a fixed amount and was given on the appointment month every year. But in the 6th CPC, the annual increment was fixed at 3% of the basic pay and that to be given on a common date for all central government employees irrespective of their appointment date. It also clarified that, any amount which falls between 1 and 10 rupees, the total should be rounded to the next 10 rupees. For eg: If an employee’s increment is Rs. 401.00, the fixation should be Rs.410.00, while for an employee, who gets Rs. 400.90, the fixation should be Rs.400.00 only. This increment is automatically added to their basic pay every year.

As far as the employees are concerned, this year’s annual increment will be the last in this particular pay commission. July also makes the date for announcing the next installment of DA to the employees. As per the data received till now, and the trend regarding price index, continues, another 6% of DA is expected from July 2015. This makes the total DA at 119%.

From the employees point of view, they are eagerly awaits the recommendations of the 7th CPC which has to be implemented from the 1st of January 2016. But till now, a crystal clear picture has not emerged about the new pay scales and pay structures, and the date of submission to the government. Nobody is in a position to come out with the details of the 7th CPC.

Let’s wait and see what happens in the coming months!!!


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