Proposed Pay Structure by National Council, Staff Side, JCM

7th Pay Commission – Proposed Pay Structure and Rate of Increment by National Council, Staff Side, JCM in the Memorandum submitted to 7th CPC

Text of Chapter VII of Memorandum submitted by National Council, Staff Side, JCM to 7th Pay Commission

Chapter – VII

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 the body the 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 deferred 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 different pay 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 pay suggested 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 raised the salary level of the personnel.  We therefore request that the 7th  CPC may recommend the rate of  annual increment at 5%.  Incidentally we may also state that the uniform date of increment prescribed by the 6th CPC has encountered certain problem 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 operational 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 hierarch 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 pay scales constructed by us are given in Table 7.1 below.

Table No. 7.1. Proposed pay scale minimum.

Check also other proposals submitted to 7th Pay Commission by National Council, Staff Side, JCM

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