Friday, 20 November 2015

7TH CPC - Grade pay abolished

“Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix,” the report says.

Towards this end, the report recommends that a fitment factor of 2.57 to be applied uniformly for all employees. That is, employees will see their pay increase by 2.57 times in a one-time increase to bring uniformity to the new pay matrix, Justice A. K. Mathur, Chairman of the Commission said.
“Based on the Aykroyd formula, the minimum pay in government is recommended to be set at Rs. 18,000 per month and Rs. 2,25,000 per month for Apex Scale and Rs. 2,50,000 per month for Cabinet Secretary and others presently at the same pay level,” the report said.

The report has abolished 52 allowances altogether and another 36 allowances have been subsumed either in an existing allowance or in newly proposed allowances.

There were some controversial issues that the Commission could not reach a consensus on. The most significant has to do with the perceived financial ‘edge’ granted to IAS and IFS officers at three promotion stages. Justice Mathur recommended that this be extended to the Indian Police Service and the Indian Forest Service as well.

While one member of the Commission recommended that status quo be maintained, another was of the view that the financial edge accorded to the IAS and IFS be removed.