Proposed Pay Structure and Rate of Increment
In the preceding chapters we have dealt with the various principles
of pay determination as was enunciated by the
successive Pay Commissions. The 6th CPC introduced the new concept
of Pay Band and Grade Pay. We are not able to comprehend any logical
methodology having been adopted by the 6th CPC in constructing
the Pay Band and Grade Pay. In the ultimate analysis, we found that
there had been no uniform multiplication factor. It varied from 2.2 time
to 3. The changes effected by the Government while implementing the
recommendations of the 6th CPC further compounded the confusion and
making it more irrational and arbitrary. The 6th CPC in their report
stated that they have upgraded certain pay scales having
appreciated the contention made by the employees organizations. They
merged certain other pay scales in an effort to delayering the
functions. But the new pay that emerged from such upgradation/merger was
not equivalent to the higher pay scales in the said group. For
instance, the erstwhile pay scales of Rs.5000-8000, 5500-9000 and
6500-10500 were merged. The multiplication factor for pay band
construction was 1.86 times of the minimum. Therefore the pay band for
the pre merged pay scales was determined to begin at Rs.9300/-. Having
merged, the pay band must have begun at 12,090/-, i.e. 1.86 times of
6500/- in which the other pay scales were merged.
7.2 The manner in which the Grade pay was devised is also questionable.
At the lower level the Grade Pay progresses @ Rs.100/- ,i.e. 1800, 1900,
2000, etc. The pay in the Band + Grade Pay at the entry level is 5200 +
1800 = 7000. An employee is
entitled for 3% increment every year. He gets a financial benefit of
Rs. 210 every year on account an increment whereas on promotion his
grade pay gets increased by just Rs.100/- only. The Grade Pay was
devised at 40% of the maximum of the pre revised time scale of pay. The
maximum of any time scale of pay will depend upon the rate of increment
and the span of the scale of pay. The ratio between the minimum and the
maximum of all pay scales was not uniform, rather it could not be
uniform.
Therefore, prescribing Grade Pay as a percentage of such variable
maximum, in our opinion, was erroneous. Normally fitment benefit
represent the gap between pre revised minimum and the revised minimum.
The 6th CPC recommendation of Grade Pay did not serve this purpose also.
Having been expressed in absolute quantum amount it gave varied benefit
in differentpay bands as also at different stages in the
same pay bands.
7.3 The Grade Pay system brought about various anomalies, which were
raised at the NAC but found no resolution despite discussions on several
occasions in the last 6 years. We are of the firm view that the 7th CPC
should revert to the Pay Scale System which has been time tested. We
have constructed the pay scales maintaining the relativities with the
time scale of paysuggested by both 5th and 6th CPC.
7.4 While constructing the pay scales we have taken the rate
of increments at 5% instead of 3% presently available. We have done so
on the ground that most of the PSUs including the banking industries
provide the incremental rate at 5% and over a period of time it raises
the salary level of the personnel. We therefore request that the 7th CPC
may recommend the rate ofannual increment at 5%. Incidentally we may
also state that the uniform date of increment prescribed by the 6th CPC
has encountered certain problems and anomalies. We, therefore, suggest
that the 7th CPC may recommend, for administrative expediency, two
specific dates as increment dates, Viz. 1st January and 1st July. Those
recruited/appointed/promoted during the period between 1st January and
30th June will have their increment date on 1st January and those
recruited/appointed/promoted between 1st July and 31st December will
have it on 1st July next year.
This apart we request the Commission to specifically recommend that
those who retire on 30th June or 31st December are granted one increment
on the last day of their service.
7.5 We have also felt that a further reduction in the number of pay
scales is needed. While constructing the pay scales we have removed
those pay scales pertaining to Grade Pay of Rs.1900, 2400, 4600, 8700
and the scale of pay of Rs. 75500-80000. We are of the opinion that the
instrument of Special Pay which was in operation earlier should be
brought back to address the need of intermediary grades in certain
organizations. The Associations and Federations representing the
employees and officers of various departments and various categories
will submit their memorandum indicating the pay scales to be assigned to
the categories of the employees and officers they represent taking into
account the nature of functions assigned to those categories
separately.
7.6 Presently, functional promotion is made to the next hierarchical
position whereas MACP promotion is Grade Pay based, irrespective of the
fact whether a particular Grade Pay exist in the hierarchy or not in
the concerned department. Our suggestion to reduce the number of pay
scales go a great extent to obviate the difficulty encountered due to
the dual system of promotion.
7.7 We have constructed open- ended pay scales. This is to ensure
that no employee stagnates without increment. The pay of the Secretary
and the Cabinet Secretary has been kept as a fixed amount as has been
the recommendation of the 6th CPC. In consonance with our view on the
need for further de-layering, we have suggested only 14 Pay
scales indicating in the table the minimum of each of them. The said
14 pay scales are given below:
In Table 7.2, the corresponding pay scales of the 6th CPC recommended Grade Pay are given for reference.
Table No. 7.1.Proposed pay scale minimum.
| Sl. No. | Pay scale No. | Present PB | PB No. | Grade Pay | Proposed minimum of the pay scale. |
| 1 | S.1 | 5200-20200 | PB.1 | 1800 | 26000 |
| 2 | S-2 | 5200-20200 | PB 1 | 2000 | 33000 |
| 3 | S-3 | 5200-20200 | PB 1 | 2800 | 46000 |
| 4 | S-4 | 9300-34800 | PB 2 | 4200 | 56000 |
| 5 | S-5 | 9300-34800 | PB 2 | 4800 | 74000 |
| 6 | S-6 | 9300-34800 | PB 2 | 5400 | 78000 |
| 7 | S-7 | 15600-39100 | PB 3 | 5400 | 88000 |
| 8 | S-8 | 15600-39100 | PB 3 | 6600 | 102000 |
| 9 | S-9 | 15600-39100 | PB 3 | 7600 | 120000 |
| 10 | S-10 | 37400-67000 | PB 4 | 8900 | 148000 |
| 11 | S-11 | 37400-67000 | PB 4 | 10000 | 162000 |
| 12 | S-12 | 75500-80000 | HAG | 0 | 193000 |
| 13 | S-13 | 80000( Fixed ) | Apex scale. | 0 | 213000 |
| 14 | S-14 | 90000 (Fixed) | Cabinet Secretary | 0 | 240000 |
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