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Pay Fixation on 1.1.06, on the date of increment and on the date of ACP/promotion – A comparison
Service – 6pc matters .We have been receiving lot of queries on sixth pay commission new pay fixation from the GConnect users. The point of concern of all is whether we will get any monitory benefit in the form of arrears or in the form of fixation of higher pay as on Sept 2008 (even at the cost of loosing some of arrears benefits), if the Pay Fixation to be done on 1.1.2006 is deferred to date of old increment that falls during the year 2006. This scenario squarely applies to Employees who have got financial upgradation under ACP scheme between 1st Jan 2006 and 31st Aug 2008.
As per Rule 5 of CCS (Revised Pay) Rules 2008, an employee may elect to continue to draw pay in the existing scale until the date on which he earns his next or any subsequent increment in the existing scale or until he vacates his post or ceases to draw pay in that scale.
As far as the method of new pay fixation is concerned, Rule 11 of CCS (Revised Pay) Rules 2008, provides that where a Government Employee continues to draw his pay in the existing scale and is brought over to the revised pay structure from a date later than 1st Jan 2006, his pay in the revised pay scale shall be fixed as follows.
New Pay in the Pay Band is fixed by adding Basic Pay applicable on the later date (viz., the date on which the employee opts for new pay fixation), and Dearness Pay and Dearness Allowance applicable based on the rates applicable as on 1.1.2006. In addition, Grade pay corresponding to pre- revised will be payable from the date of New Pay fixation.
Now, let us have a comparison between the New Pay fixation on 1.1.2006 and on the date of increment.
Pay Fixation on 1.1.2006
Pay fixation on the date of increment
New Pay is fixed by multiplying the basic pay on 1.1.2006 with 1.86.
New Pay is to be calculated based on the Old Basic Pay, Dearness Pay and Dearness Allowance based on the rates applicable as on 1.1.2006 received by the employee on the date of New pay Fixation. Till the New pay is fixed Old pay is continued to be paid. The effect is No arrears till the New Fixation.
Increment of 3% on every July if Revised pay is received for at least 6 months before the date of new increment. So, in the event of pay fixation on 1.1.2006, increment due on 1st July 2006 is automatically paid.
Because of restriction cluase in the new increment provisions (that minimum of 6 months in the new pay scale for receipt for 3% increment on July), by default the first increment on July 2006 is not payable. For earning the susequent increments after July 2006, again the 6 months rule is to be applied.
Based on this rule frame work, We have made illustrative New Pay Fixation for 12 employees who belong to different prerevised scales and receive pre-revised increments in different months.
Employee Old Pay details Fixation on 1.1.2006 Fixation on the date of increment
Emp B.P on 1.1.2006 Increment month Sept-08 Fixed Pay Arrears Sept-08 Fixed Pay Arrears
X1 7500 (6500-200-10500) HRA 30%, TA – Rs.1600 Feb 30837 130607 30574 123382
X2 April 30837 133045 30574 116658
X3 June 30837 135483 30574 109934
X4 Aug 30837 137952 31465 119204
Y1 12000 (12000-375-S21) HRA 30%, TA – Rs.3200 Feb 51469 233308 51147 223416
Y2 April 51469 237876 51147 211384
Y3 June 51469 242444 51147 199352
Y4 Aug 51469 247073 52593 213354
Z1 5000 (4000-100-6000)HRA 30%, TA – Rs.600 Feb 19399 77071 19121 70667
Z2 April 19399 78289 19121 66705
Z3 June 19399 79507 19121 62743
Z4 Aug 19399 80742 19705 69388
Calculator relevant to this Calculation available in GConnect Calculator for all pay Bands Calculator for fixation on the date of increment
This study shows that employees who receive their pre-revised increment in the month of June and before get no benefit either in the arrears or in the new pay when new pay fixation is deferred to their respective increment month. However, when the increment month is after Junel i.e from July to Dec, those employees if they defer their pay fixation to the month of their respective increment month, get small benefit in their Gross pay as on Sept-2008 (to the tune of around 7% to 10% of their pre-revised pay as on 1.1.2006), after incurring some loss in the arrears receivable.
This is because when an employee misses the revised increment during July 2006 on account of deferred fixation, he loses 3% of revised pay which is at any point of time more than the pre-revised increment the employee gets when he continues to get old pay after 1.1.2006. This is why the new Pay Fixation from Feb-06 to June-06 based on Pre-revised Basic Pay, Dearness Pay and Dearness allowance (DA) in these months is lesser than the New Pay fixed on 1.1.2006. On the other hand, when the New Pay is fixed during July-2006 to Dec-2006, the additional Dearness allowance (DA) of 5% from July 2006 added in the pre-revised pay which is taken for calculating the New Pay fixation neutralizes the July increment amount of 3% lost by the employee due to deferred Pay Fixation.
Of course, the inference we have made out from this study is not foolproof and may vary in certain cases. We invite discussions on such situations by the users in the form of comments to