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Thursday, March 27, 2008

Sixth pay commission truths

Contrary to most of our expectations 6th pay commission is not going to give us pay hike. Apart from the inflation and reduction in money value,even in simple arithmetics you would get your pay reduced if 6th pay commission report is implemented. See how even in simple calculations.

Existing Pay scales given with referance to 6th pay commission

S-1*2550-55-2660-60-3200
S-2* 2610-60-3150-65-3540
S-2A* 2610-60-2910-65-3300-70-4000
S-3* 2650-65-3300-70-4000
S-4 2750-70-3800-75-4400
S-5 3050-75-3950-80-4590
S-6 3200-85-4900
S-7 4000-100-6000
S-8 4500-125-7000
S-9 5000-150-8000
S-10 5500-175-9000
S-11 6500-200-6900
S-12 6500-200-10500
S-13 7450-225-11500
S-14 7500-250-1200
S-15 8000-275-13500
S-16 9000
S-17 9000-275-9550
S-18 10325-325-10975
S-19 10000-325-15200
S-20 10650-325-15850
S-21 12000-375-16500
S-22 12750-375-16500
S-23 12000-375-1800
S-24 14300-400-18300
S-25 15100-400-18300
S-26 16400-450-20000
S-27 16400-450-20900
S-28 14300-450-22400
S-29 18400-500-22400
S-30 22400-525-24500
S-31 22400-600-26000
S-32 24050-650-26000

Increment for each scale in fifth pay commission- existing

basic pay் increment
% of hike்
3200 85 2.66
4000 100 2.50
4500 125 2.78
5000 150 3.00
5500 175 3.18
6500 200 3.08
6500 200 3.08
7450 225 3.02
7500 250 3.33
8000 275 3.44
9000 275 3.06
10325 325 3.15
10000 325 3.25
10650 325 3.05
12000 375 3.13
12750 375 2.94
12000 375 3.13
14300 400 2.80
15100 400 2.65
16400 450 2.74
16400 450 2.74
14300 450 3.15
18400 500 2.72
22400 525 2.34
22400 600 2.68
24050 650 2.70


Actual hike in total emoluments will be only 10 - 12 %. This increase will be nullified in 2-3 years, because of less rate of increment and the base year for calculating the DA has been changed from 1/1/1996 to 1/1/2001. in future also rate of increase in DA will be approximately half.Therefore, henceforth, rate of increase in salary will be reduced. and after 5 years your salary will be less, compare to without implementation of 6th CPC, because of

1. annual increment is less after revision ( only 2.5%)
2. Henceforth announcement of further DA will be approx. half since the base year for clculating the DA is changed from 1/1/1996 to 1/1/2001.

Please see the examples below about actual benefits, if we take into account the maximum pay in the existing scales.

As on 01.01.2006

Old Total Pay in old scale Revised Total Pay % Increase
Pay (Maximum in the Scale) As per 6th CPC
Scale (Basic+DP+DA 24%)

S-1 Rs. 5,952 Rs. 6,870 15.43 %
S-2 Rs. 6,584 Rs. 7,560 14.83 %
S-2A Rs. 7,440 Rs. 8,560 15.06 %
S-3 Rs. 7,440 Rs. 8,610 15.73 %
S-4 Rs. 8,184 Rs. 9,460 15.60 %
S-5 Rs. 8,537 Rs. 9,890 15.85 %
S-6 Rs. 9,114 Rs.10,530 15.54 %
S-7 Rs.11,160 Rs.12,840 15.06 %
S-8 Rs.13,020 Rs.14,980 15.06 %
S-9 Rs.14,880 Rs.18,120 21.78 %
S-10 Rs.16,740 Rs.19,860 18.64 %
S-11 Rs.12,834 Rs.16,210 26.31 %
S-12 Rs.19,530 Rs.22,470 15.06 %
S-13 Rs.21,390 Rs.24,610 15.06 %
S-14 Rs.22,320 Rs.25,680 15.06 %
S-15 Rs.25,110 Rs.28,890 15.06 %
New S Rs.25,110 Rs.28,890 15.06 %
S-16 Rs.16,740 Rs.21,390 27.78 %
S-17 Rs.17,763 Rs.22,200 24.98 %
S-18 Rs.20,414 Rs.25,200 23.45 %
S-19 Rs.28,272 Rs.32,550 15.14 %
S-20 Rs.29,481 Rs.34,080 15.60 %
S-21 Rs.30,690 Rs.35,310 15.06 %
S-22 Rs.30,690 Rs.36,210 17.99 %
S-23 Rs.33,480 Rs.38,920 16.25 %
S-24 Rs.34,038 Rs.39,450 15.90 %
S-25 Rs.34,038 Rs.40,150 17.96 %
S-26 Rs.37,200 Rs.43,200 16.13 %
S-27 Rs.38,874 Rs.44,770 15.17 %
S-28 Rs.41,664 Rs.57,990 39.19 %
S-29 Rs.41,664 Rs.57,990 39.19 %
S-30 Rs.45,570 Rs.65,090 42.84 %
S-31 Rs.48,360 Rs.71,270 47.38 %
S-32 Rs.48,360 Rs.71,270 47.38 %
S-33 Rs.48,360 Rs.80,000 65.43 %
S-34 Rs.55,800 Rs.90,000 61.29 %

Actual benefit is being given to JS and above (increase of 40 % to 65%, others are getting only 15%) only. Some other discrepancies are as under:

i) Increment of 2.5 % only, while presently most of the employees (except JS and above) are getting increment of 3% and above.
ii) Promotion/ACP benefits will be reduced to one increment only. Presently lower scales mostly get good jump on promotion.
iii) Initial pay should be fixed as per pay + DP + DA 24% i.e. old basic + 86% and not at 74%, as recommended by 6th CPC.
iv) DA should be paid @23% (47 - 24) w.e.f. 01.01.2008.
Please dont view 6th pay commission through media hype. This is the reality.

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