Friday 4 December 2015

The Shocking facts of Pay hike recommended by VII CPC

The Pay hike recommended by 7th Pay Commission has been described as Bonanza by Media.

Pay commission said 14.29 % Hike in Pay is recommended. Media said Central government employees will get 23.55% hike in salary including allowances. Let’s  find out the real fact about the so called Bonanza..!

Let us know whether the Media claims are true or not through a simple calculation…!

The strength of Group C employees in Central Government is 85%. So we must know what the Pay Hike is recommended for them actually.

7th CPC recommendation on Pay Hike is retrograde rather than encouraging the Central government employees. See the following example.

Assume a Govt. servant has been appointed in GP 1800 on 1st August of 2015 and he has been provided accommodation in Govt. Quarters.

His Net Pay for the month of January 2016 in Sixth CPC is given below.

Basic Pay  = PB Rs.5200 + GP Rs.1800  =  Rs.7000/-
Assuming DA 125% as on 31-01-2016    =  Rs.8750/
(Since he has availed Govt.Quarter) HRA  =  Nil
Transport Allowance = 600 + DA  =  Rs.1350
Total Gross Pay    =  Rs. 17,100

Deductions

NPS (10% of basic Pay) = 700
CGEGIS   =   30


Total deductions   (700+30) = 730
Net Pay = 17100-730   =  Rs.16370/-


His Revised 7th CPC Pay as on 31-01-2016
Minimum Basic Pay  =  Rs. 18000/-

Dearness Allowance   =    Nil
House Rent Allowance =  Nil
Transport Allowance  =  Rs.1350

Total Gross pay  =   Rs.19,350
Deductions
NPS(10% of basic Pay )= 1800
CGEGIS = 1500
Total deductions = 3300
Net Pay = 19350-3300 = Rs.16,050/-


Before 7th Pay Commission his Net pay = Rs. 16,370/-
After 7th Pay commission his Net Pay    = Rs.  16,050/-


He will be drawing Rs.320/- lesser in 7th Pay Commission revised Pay than from his Sixth CPC pay.

 Can anybody calculate from the above example that how much percentage of increase these Group ‘C’ Government servants get from this 7th CPC bonanza? 

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