The Shocking fact of Pay hike recommended by 7th Pay Commission

The Shocking fact of Pay hike recommended by 7th Pay Commission

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. [See: How 23.55% of hike in Pay and Allowances arrived from 7th Pay Commission recommendation]

we will 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.

But Media give more attention to this 15 % because they have been paid more

It doesn’t make sense that the Pay hike recommended for remaining 15 % taken into account. Because they are creamy layer of the Government. The Pay Hike for them also will be decided by them. So the take extra care for not giving more to this 85%.

7th CPC recommendation on Pay Hike is mocking 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 Pay = PB Rs.5200 + GP Rs.1800 = Rs.7000/-
Assuming DA 125% as on 31-1-2016 = Rs.8750/
( Since he hs availed Quarter) HRA = Nil
TA = 600 + DA = Rs.1350
Total Gross Pay = Rs. 17100

Mandatory Deductions

NPS 10% of [Basic Pay + DA @125%] = 1575
CGEGIS = 30

Total deductions (1575+30) = 1605
Net Pay = 17100-1605 = 15495

His Revised 7th CPC Pay as on 31-1-2016

Minimum Basic Pay = Rs. 18000/-

DA = Nil
HRA = Nil
TA = Rs. 1350

Total gross pay = Rs.19350

Mandatory Deductions

NPS = 1800

CGEGIS = 1500

Total deductions = 3300

Net Pay -= 19350-3300 = 16050

Before 7th Pay Commission his Net pay = Rs. 15495
After 7th Pay commission his Net Pay = Rs. 16050

He will be drawing Rs.555 higher in 7th Pay Commission revised Pay than from his Sixth CPC pay

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

[ *updated on 9-12-2015 ,

* In pre revised Pay calculation, earlier only 10% of Basic Pay has been taken into account for NPS mandatory deduction. it is now corrected as 10% of Basic Pay + DA @125%

*inconvenience caused is regretted]