Wednesday, 3 April 2013

Central Pay Commission: for Government Employees, India

यदी आप गुगल क्रोम इस्तेमाल करते हो तो हिंदी में पढ़ने के लिये इधर क्लिक किजीये. फायर फॉक्स आय इस्तेमाल करते हो तो भी शायद पढ़ सकेंगे। प्रयत्न किजीये। Suggestions are invited by VIIth CPC Please click here for reading my suggestions and preparing your suggestions. These must reach the  Secretary VIIth CPC New Delhi before 31 July 2014. Click here now

Pay and wages of employees whether private or government do need revision based on the minimum living standard and expenditure incurred to sustain honourable living. In private sector it is easy to find minimum wages as these are based on the profit made by the employer. In case of government employees this criteria is not applicable as most of the services provided by the government cannot be assessed in terms of money. This is a social service and must be provided at any cost. Therefore, emoluments of government servants are more dictated by the maintenance cost rather than profit criteria. Therefore, pay commission considers maintenance cost of a family at different levels and provides adequate compensation for the services rendered by the government servants. Like in private sector management staff takes care of improvement of production with the help of workers in government officers take responsibility of service provided to the citizens. It is natural that management in private sector expects better compensation than the workers. In government sector law of equality is more prominent specially because there had been a big disparity between workers at entry level and officers at top most level. Emolument ratio had been as high as 30-35 when India became an independent nation. Every pay commission has considered this and brought down this ratio to approximately 16. In my opinion this ratio is reasonable and should continue in future.

Every pay commission has considered many aspects to arrive at certain emoluments to government servants. Analysis of the 6th CPC(central pay commission) shows following results.     हिन्दी

1)      Pay scales have been divided in to 4 distinct categories names as Pay Bands. There are 4 pay bands and HAG/HAG+. High Administrative Grade has been placed out side the Pay Bands.

2)      Minimum basic pay for the lowest category is Rs. 5740.00 and the highest pay is Rs. 90000.00. The ratio is 15.68.

3)      Every pay commission had reduced number of pay scales. Presently there are 35 pay scales in existence. They are named as S-1 to S-34 (S-2A is one of the pay scales). Argument for this is high number of pay scales make it difficult to implement. There is another aspect of this i.e. less number of pay scales results in reduced incentive of promotion. Promotion has proved to be the best incentive for a government servant to work better.

4)      Some more incentives had been recommended by various pay commissions and mostly accepted by the government. These include house rent allowance (HRA), monthly travel allowance (MTA), city compensation allowance (CCA) etc. These allowances do improve living of government servants. Pay commission should recommend such allowances.

5)      No Pay commission has recommended changes in responsibilities or added new responsibilities of government servants. In this respect both private and government sectors appear alike.

6)      Every CPC has studied from beginning and placed there recommendations as if the study is undertaken first time. Study made by earlier CPC(s) has not been used while studying the aspect further.

7)      Analysis of pay and pension structure recommended by 6th CPC reveal following:-

a)      Analysis describes PB-1. However, this is true for other Pay Bands also.

b)      It is understood that 6th CPC considered rate of increment as 3% of basic pay. This is taken in to analysis. However, the formula arrived at fits only for PB-1. For other pay bands increment percentage is on decreasing side from 2.25 for PB-2 to 1.65 for PB-3 and 1% for PB4.

c)      For the purpose of deriving formulae for pay scales for various pay bands the increment value is taken in to consideration for a block of 5 years. This means increment for 5 years remains constant and is based on the starting pay in that block of 5 years.

d)      The lowest and highest basic pay (bp) (including grade pay) in the pay band is matched to make the formula authentic. For PB-1, starting bp is 5740 (this includes grade pay of Rs. 1300.00) and ending bp is 23000.00 (this included grade pay of Rs. 2800.00) the formula gives highest bp as Rs. 23469.00. For other bands the results are shown in following table.

e)      Efforts have been made while deriving each formula to estimate for a single pay scale for every pay band rather than arbitrary fixing pay scales for different posts. This reduces 35 pay scales to merely 4 pay scales. PB-1 gets highest attention and is given better rate of increment. Higher pay bands have been given lower benefits. For example comparison between PB-1 and PB-4 shows rate of increment 3 times, ratio of lowest and highest BP as 4.22 and 1.68. In short the results found by 6th CPC should be maintained by future CPC(s). Grade pay introduced by 6th CPC is merged with bp. This should be the simplest solution.

f)        Pay scale is prepared considering it should take 50 years in a general way to reach the highest pay in the scale. This means just entering service won’t guarantee reaching top in the pay band as none can serve for 50 years. Retirement age would block one’s way to reach the top unless he/she possesses special skills. There is a need to add some simple rules for promotion and pension. This method or type of pay scale would give flexibility to every government department to plan posts required by them (10 level posts in every band). It is not necessary that the department should use all levels. Some levels need not be necessary for a particular department. There are 4 categories of employees from group D to group A and 4 pay bands from 1 to 4. One pay band forone1 group is an ideal situation and same can be implemented.  It is suggested that pay bands should be renamed as Pay Band-A (existing Pay Band-4) to Pay Band-D (existing Pay Band-1).

g)      This pay scale should be considered for increment in a particular way. A person should be allowed to earn increment for 5 years from the date he/she is absorbed in a service. After 5 years the person should be considered for promotion. The person should get a fixed number of opportunities for promotion. In case of armed forces 3 opportunities are admissible. Care is taken to safeguard seniority of person irrespective when he/she gets promotion. This means even if the person is promoted in 3rd opportunity his/her seniority remains same as in the lower post.  This procedure is tried by armed forces for number of years and working fine. This would give 3 chances for every employee and safeguard seniority only but not pay. This procedure should continue at every stage till the employee retires. An employee may be given incentive by adding efficiency bar (EB), if he/she is not found good enough for promotion in all 3 chances available. Crossing EB should not be promotion to next higher post but it should be simply monitory benefit available for persons in the same grade.

h)      For fixing/revising pension a single formula should be used. Irrespective of when an employee retired the present formula based on last pay or average of last 10 months pay and pensionable service of 20 years should be implemented. Those who retired earlier, notionally their pay should be fixed for purpose of estimating pension. One more clause should be added that for the purpose of pension post held by the employee at the time of retirement should be considered and not actual basic pay drawn by the employee. This shall help in maintaining and improving the efficiency of the employees.

CPCs in past have taken tremendous efforts and prepared recommendations for improving quality of service while giving what employees deserve. All the recommendations accepted by the government have been placed together in Para 7 a) to h). Future CPCs should work out the lowest basic pay for 4 pay bands using a single formula. The rest of the estimates should follow the mathematical model presented in following table. This will not only ensure giving dues to employees but also work of pay commission shall take much less time. Government should place this as a guideline while ordering CPC in future.

Table showing mathematical analysis of pay scales recommended by 6th CPC

Pay-Pay Band
Pay-Pay Band
Pay-Pay Band
Pay-Pay Band
Multiply every 5 years
Pay in Band-1  every 5 years
Multiply every 5 years
Pay in Band-2  every 5 years
Multiply every 5 years
Pay in Band-3  every 5 years
Multiply every 5 years
Pay in Band-4  every 5 years

Basic Pay including Grade pay

Basic Pay including Grade pay

Basic Pay including Grade pay

Basic Pay including Grade pay
Percentage increment





Madhav Bamne said...

This article gives simple solution for government employees and pensioners (including family pensioners). It states there should be just 4 pay scales for 4 groups of employees, for every post starting pay should be fixed by respective department. Every 5 years there should be an opportunity for promotion, there should be 3 chances for promotion, those who are not successful in promotion should have opportunity to cross efficiency bar so higher pay is admissible in the same post, pensioners should get pension based on a single formula that is last pay drawn/average of last 10 months pay based on pensionable service of 20 years irrespective when an employee retired, this means notional pay fixation should be done for pensioners and pension revised accordingly. Over all the thinking in the article is useful and gives just procedure for right pay and work. I am placing my comments on article. You also may do same thing. By doing this we can take this to 7th pay commission as our proposal. I feel every employee and pensioner should support and suggest modifications to make it more and more acceptable to all.

Vishwanath Bhat said...

The suggestion is very good as it makes sense and devoid of any complications. We may endorse it, without any hesitation.

Anonymous said...

The sixth cpc has not mentioned anything about full parity and this has resulted in injustice to senior pensioners even though the concept was in force earlier. As a consequence, even after 2 cpc timegap also, many pensioners are still in modified parity since govt maintains that there is no provision for the same in the 6cpc.Since the shortcomings 6cpc could e corrected by the cpc, this aspect may have to be taken up with the cpc.

Jana Hitwadi said...

@ Anonymous Anonymous, I think this is taken in to consideration in the article. This article says in para 7 f as under "For fixing/revising pension a single formula should be used. Irrespective of when an employee retired the present formula based on last pay or average of last 10 months pay and pensionable service of 20 years should be implemented. Those who retired earlier, notionally their pay should be fixed for purpose of estimating pension." This means parity shall be maintained. In case you have some thing else in mind please post a clause which should be made part of this article.

I invite all those who wish to improve this document. I am going to request pensioners' associations to include this in their demands.

Gopalaswamy said...

This comment was posted on Old Age Homes. I am repeating it here:-

H N Gopalaswamy I undestand one of the state Govts has introdued said...

I am of the opinion that there should be only one Master Scale,from which for different posts starting pay be fixed without grade-pay by assessing each post on a scale of 10 for the involved responsibility,risk,minimum qualification for the post,etc by different departments according to their requirements,without having one scale for different posts.I understand one of the State Govt.s have introduced this Master Scale mehtod and hardly any grievances are there. H N Gopalaswamy

Madhav Bamne said...

Comments invited by VIIth CPC. Information available @;postID=2991396135854483900;onPublishedMenu=allposts;onClosedMenu=allposts;postNum=0;src=postname

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