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National Anomaly Committee Meeting : Agenda Item 1

July 5, 2017

National Anomaly Committee Meeting : Agenda Item 1

ANOMALY IN INCREMENT RATE

As per clause(C) of the terms of reference of the National Anomaly Committee – where the official side and the staff side are of the opinion that any recommendations is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the commission assigning any reason – it constitutes an anomaly.

Regarding annual increment the recommendations of seventh CPC are as follows:

(i) 7th CPC Report – Highlights of Recommendations –

SL – 7 – Annual Increment – The rate of annual increment is being retained at 3 percent.

(ii) 7th CPC Report – Forword

Para 1.19 – The prevailing rate of increment is considered quite satisfactory and has been retained.

(iii) 7th CPC Report – Chapter 4.1 –Principles of Pay determination

Para- 4.1.17 – The various stages within a pay level moves upwards at the rate of 3 percent per annum.

(iv) 7th CPC Report – Chapter 5.1 – Pay Structure (Civilian Employees)

Para 5.1.38 – Annual Increment

“The rate of annual increment is being retained at 3 percent”

Para 5.1.21 – The Vertical range of each level denotes pay progress within that level. That indicates steps of annual financial progression of 3 percentage within each level.

Contrary to the above principle laid down by the 7th CPC, the actual increment rate in the Pay levels of the Pay matrix are less than 3% as illustrated in the Table below: –

ILLUSTRATION-I – LOSS IN INCREMENT

Pay
Level
Sl. No. in
the Pay
Level
(Cell)
Basic Pay in
the Revised
Pay scale
Next above
Basic Pay
after adding
3% increment
Next above
Basic Pay
fixed as per
pay matrix
Amount of
loss to the
employee
Actual
increment
rate %age
1 12 24900 25647 25600 47 2.81
1 26 37600 38728 38700 28 2.92
3 9 27600 28428 28400 28 2.89
3 16 34000 35020 35000 20 2.94
4 11 34300 35329 35300 29 2.91
4 22 47500 48925 48900 25 2.94
5 10 38100 39243 39200 43 2.88
5 20 51100 52633 52600 33 2.93
6 6 41100 42333 42300 33 2.91
6 9 44900 46247 46200 47 2.89

ILLUSTRATION – 2

In Level – 2, Cell – 2, the pay is shown as 20500. After giving one increment of 3% it should be 21115/- but the next cell is only 21000 (Level-2, Cell-3). Next stage should be 21115+633=21748 but the next cell is only 21700 (Level-2 Cell-4).

In Level – 6, Cell 14 should be 50500 + 1515 = 52015 whereas it is given only 52000.

From the above it can be safely concluded that

(i) Recommendation of the Pay Commission regarding increment rate is in contravention of the principle or policy enunciated by the 7th Pay Commission, Hence it constitutes an anomaly.

(ii) In many stages, eventhough the increment is shown as 3%, it is rounded off to the next below amount causing financial loss to the employees.

(iii) In the sixth CPC, while calculating increment, if the last digit is (one) or above, it used to be rounded off to next 10 (Ten). So in this Pay Matrix also if the amount is 10 (Ten) and above, it should be rounded off to the next above 100 (hundred).

(iv) Even if the difference may look small (in percentage) it will also have long term impact on the employees promotion inviting heavy financial loss. The following illustration will reveal it.

Illustration

1 Pay Level 6
2 Cell (Stage) in the Pay Level 8
3 Basic Pay in the Revised Scale 44900
4 Actual Pay after adding 3% annual increment 46247
5 Basic Pay fixed as per the Pay Matrix 46200
6 Loss of amount to the employee in the increment 47
7 Pay on promotion to next Level if fixed as per serial 4 above 49000
8 Pay on promotion to the next level, if fixed as per serial – 5 above 47600
9 Loss per month on promotion 1400

Thus, for a loss of Rs.47/- only in the Annual increment, the employee will suffer a recurring loss of Rs.1400/- per month during his/her promotion to the next level and this loss will have cumulative effect on rest of the period of the service career with financial loss on Dearness Allowance (DA) and further promotions and also Pensionery benefits.

The above anomalies are to be rectified.

Check here for Agenda Items 1 to 7

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Related posts:

  1. National Anomaly Committee Meeting : Agenda Item 3
  2. National Anomaly Committee Meeting : Agenda Item 2
  3. National Anomaly Committee Meeting : Agenda Item 6
  4. National Anomaly Committee Meeting : Agenda Item 5

Must Read : 7th CPC Anomalies, 7th Pay Commission, Confederation, National Anomaly Committee





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