Fitment Formula and Fixation of Pay on Promotion

Fitment Formula and Fixation of Pay on Promotion – Confederation’s Memorandum to 7th Pay Commission

Fitment Formula proposed to 7th Pay Commission

The fitment formula suggested by all the earlier Pay Commissions was not reflective of the actual revision of wages. The employees who were on rolls on the date of implementation of the Commission’s recommendation comparatively received lesser benefit than the new entrants. Amongst the existing employees also, more benefit accrued to persons with lesser service period. This happened due to the rejection of the demand of the Staff Side to have point to point fixation.

8.2 The anomalous situation was addressed during the discussion the Staff Side had with the Group of Ministers in September 1997, over the implementation of the recommendations of the
5th CPC. In the place of 20% of the basic pay recommended by the 5th CPC as fitment formula the Staff Side could negotiate and settle it at 40%. The said agreement brought about near total satisfaction over the revision benefit amongst all sections of employees. The said 40% benefit brought about uniform multiplication factor too.

8.3. Taking these in to consideration, we suggest that the multiplication factor (26000/7000 =
3.7) may be applied uniformly in all the cases to arrive at the revised pay in the new scales of pay.

Fixation of Pay on promotion proposed

In the case of Promotion from one grade to another in the revised pay structure, the fixation is presently done as under:-

(a) One increment equal to 3% of the sum of the Pay in Pay Band and Grade Pay will be computed and rounded off to the multiple of 10. This will be added to the existing Pay in the Pay Band.

(b) However, the Pay so fixed must not be less than the minimum of the Pay Band to which he is promoted.

Exception to the general rule is,

(a) When promotion takes from PB 4 to HAG scale of Rs.67000 – 79000, after adding one increment, pay in the Pay Band and existing Grade Pay will be added. To the figure so arrived at a sum of Rs.2000/- will be added. The pay so fixed is subject to a minimum of Rs.67000 and a maximum of Rs.79000

(b) The promotion from the Grade of Under Secretary/equivalent to the Grade of Deputy Secretary/Equivalent. The pay of the promoted is fixed by granting an amount equal to two increments. i.e., 6 % of their Basic Pay. The figure so arrived at, a sum of Rs.1000 i.e., the difference between the Grade Pay of Under Secretary and Deputy Secretary (7600-
6600) will be added .

9.2 We suggest that the financial benefit on promotion must not be an insignificant amount. In most of the Departments promotion is based upon a qualifying Exam or skill test. In the case of employees the promotions are made very many years after the stipulated residency period in the Feeder Cadre, due to the non availability of vacancy at the higher grades.. After undergoing the rigours of the exam/test or after prolonged period of service in the feeder cadre, if the financial benefit is pittance, it only brings about a sense of desperation and frustration. In most of the field formations, the promotions are accompanied by transfer from one place to another. The financial benefit he received on account of promotion often gets washed away in the reduced allowances like HRA, CCA etc. when posted to unclassified Cities, increased expenses involved in setting down at another location viz. Finding new accommodation, shifting, school admission for children etc.

9.3 We suggest that the benefit on promotion, therefore, should be:

Two increments in the feeder cadre.