The multiplication factor suggested by the 7th Central Pay Commission is 2.57. So far as the first level of the matrix is concerned, the starting point will be Rs.18,000 as it corresponds to the starting salary of Rs.7000 (start of Pay Band 1). Of this Rs.7000, the basic pay is Rs.5,200 and the grade pay is Rs.1,800. This starting point has been prevalent since January 1, 2006 – the date on which the recommendations of the 6th Central Pay Commission were implemented. Therefore, the starting point which has been recommended now is 2.57x the amount prevailing over 10 years ago.
In their memorandum concerning the fitment formula, the National Council JCM Staff Side recommended one as the formula suggested by the previous Pay Commission did not reflect wages actually being revised. Employees who newly entered the rolls after the implementation of the formula earned more benefits in comparison with those who were on the rolls when the Commission’s suggestion was implemented. Even so far as the current employees were concerned, those who served for a lesser period availed more benefits with others because the Staff Side’s demand to have point-to-point fixation was rejected.
When the Staff Side met with the Group of Ministers to discuss the implementation of the suggestions of the 5th Central Pay Commission in September 1997, even this situation was deliberated. The 5th Central Pay Commission had recommended 20% of the basic pay as the fitment formula, but the Staff Side negotiated with the Ministers and increased it to 40% of the basic pay. Almost all sections of employees were satisfied with the revision benefit and the 40% benefit also helped in bringing about consistent multiplication factor.
The 7th Central Pay Commission has suggested that the aforementioned points be considered and that the multiplication factor (26,000/7,000 = 3.7) be made applicable consistently in all cases so that the revised pay in the new pay scale is arrived at.
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