Despite economic growth taking a tumble - from over 9% to sub 5% - and the government caught in a fiscal bind as revenues diminish, non plan expenditure is all set to swell with revised salaries of government employees salaries with the 7th Pay Commis

Sauce for the goose is (not) sauce for the gander

Expose double standardsThere's an old saying, "What is sauce for the goose is sauce for the gander." This meshes well with the Golden Rule, or ethic of reciprocity, which is a key moral principle in many religions and philosophiesThis phrase, in a nutshell exposes "double standard., being practiced by the government /IBA combine in denying , delaying our just demand of 25 % increase.

Despite economic growth taking a tumble - from over 9% to sub 5% - and the government caught in a fiscal bind as revenues diminish, non plan expenditure is all set to swell with revised salaries of government employees salaries with the 7th Pay Commission kicking in from 2016.,in a sop to its employees ahead of the elections, among the flurry of proposals cleared by the cabinet was the terms of reference for the new Pay Commission then UPA government on February 28, 2014 announced constitution of the Seventh Pay Commission to revise salary and pension for about 80 lakh staff and pensioners. The recommendations of the new Pay Commission, which will be constituted shortly, will be implemented from January 1, 2016."The then Prime Minister Manmohann Singh approved the constitution of the 7th Pay Commission. Its recommendations are likely to be implemented with effect from January 1, 2016", then Finance Minister P Chidambaram said in a statement.

The Congress and the employees union hailed the decision of the United Progressive Alliance (UPA-II) government.

The union, however, demanded that the pay panel's award be implemented with retrospective effect from January 1, 2011.

Commerce and Industry Minister Anand Sharma said: "It is the right of the employees to have Pay Commission ...when the recommendations come, the government will be able to implement (it). You do not do something for which you do not have money available.

The outflow from the central exchequer will be massive. The previous commissions have cost it as much as Rs 2 lakh crore (excluding expenses for railway and state government employees) and severely impacted the fiscal situation of both the central exchequer and departments like the railways, the aftereffects of which are being felt till date. Nonetheless, analysts expect the 7th panel to suggest 3-3.5 times hike in salaries across various grades according to some reports, with the government even considering merging 50% DA (which in itself will be increased by 10% to 100% by end of February) with basic pay of employees, which would further negatively impact outgo on other allowances like the house rent allowance (HRA).

With inflation averaging at 9% in the last few years, the need for an increase in pay for the over 7 million central government employees cannot be a point of debate. We can also discount for a moment the quantum of hikes, even though salaries have tripled every 10 years - a much faster growth rate than in the private sector according to an analysis done by The Hindu Business Line which estimates that the average wage of a factory worker in HUL increased by less than 2.67 times over 10 years.It was reported that the commission has also been asked to keep in view the best global practices and their adaptability and relevance in Indian conditions while making the recommendations"Except for 6th Pay Commission, all Pay commissions are set up in 3rd year of a decade....The government should attract best of talents as its employees.

Pay Commissions help in attracting and also retaining best available talents," Congress general secretary in-charge for Communication Ajay Maken commented on the microblogging site Twitter.

He further said, "The National Democratic Alliance (NDA) rejected the legitimate formation of 6th Pay Commission in 2003. Congress set up the 6th Pay Commission in 2005, now again the 7th CPC in 2013."

Ministry of Finance has published gazette notification on February 28, 2014. . Details about the terms of reference of the Commission, tenure are also available; Questionnaire seeking the considered views of all stakeholders to be submitted by June 30, 2014 was also put up in the government website. http://7cpc.india.gov.in/ .

I am giving below the TERM OF REFERENCE COMPARISION OF 6TH AND 7TH CPC, QUESTIONNAIRE OF THE 6PAYCOMMSION AND 7TH PAY COMMISSION AND ANTICIPATED INCREASE WORKED OUT BY THE UNIONS FOR GOVERNMENT EMPLOYEES to enable the readers to arrive at their own value judgment .

If one objectively looks at the same the objective of the commission is to evaluate the COMPARISON/PARITY BETWEENPAY SCALES AND PERQUISITES BETWEEN GOVERNMENT AND THE PRIVATE SECTOR to a attract talent. The essence of to the recommendation is to objectively consider the following cardinal points . comparison/parity betweenpay scales and perquisites between Government and the private sector

Attracting Talent

grade pay concept

reasonablequantum of annual increment

Reward good performance?

The principles that govern thestructure of pension and other retirement benefits?

Payment of Bonus That being the case are we not justified in demanding parity with government employees atleast to the level of 6 pay commission in our 10 bipartite by demanding 25% increase in wage load that too in pay slip components .Will the Govt/IBA combine explain with logical reasons as why there is paralysis of will consider our justifiable demands and our wage revision is delayed by two years especially when bank employees have lagged behind government employees and employees in financial sector since fifth bipartite. .

TERM OF REFERENCE COMPARISION OF 6TH AND 7TH CPC

The below table describes the difference in Terms of References between the earlier pay commission of 6th and 7th CPCas given below

Terms of Reference of the Sixth Central Pay Commission:-

A. To examine the principles, the date of effect thereof that should govern the structure of pay, allowances and other facilities/benefits whether in cash or in kind to the following categories of employees :-

1. Central government employees industrial and non-industrial.

2. Personnel belonging to the All India Services.

3.Personnel belonging to the Armed Forces.

4. Personnel to the Union Territories.

5. Officers and employees of the Indian Audit and Accounts Department.

6. Members of the regulatory bodies (excluding the RBI) set up under Acts of Parliament*.

7. Officers and employees of Supreme Court of India**.

B. To transform the Central Government Organisations into modern, professional and citizen-friendly entities that are dedicated to the service of the people.

C. To work out a comprehensive pay package for the categories of Central Government employees mentioned at (A) above that is suitably linked to promoting efficiency, productivity and economy through rationalization of structures, organizations, systems and processes within the government, with a view leveraging economy, accountability, responsibility, transparency, assimilation of technology and discipline.

D. To harmonize the functioning of the Central Government Organisations with the demands of the emerging global economic scenario. This would also take in account, among other relevant factors, the totality of benefits available to the employees, need of rationalization and simplification, thereof, the prevailing pay structure and retirement benefits available under the Central Public Sector Undertakings, the economic conditions in the country, the need to observe fiscal prudence in the management of the economy, the resources of the Central Government and the demands thereon on account of economic and social development, defence, national security and the global economic scenario, and the impact upon the finances of the States if the recommendations are adopted by the States.

E. To examine the principles which should govern the structure of pension, death-cum-retirement gratuity, and family pension and other terminal or recurring benefits having financial implications to the present and former Central Government employees appointed before January 1, 2004.

F. To make recommendations with respect to the general principles, financial parameters and conditions which should govern payment of bonus and the desirability and feasibility of introducing Productivity Linked Incentive Scheme in place of the existing ad hoc bonus scheme in various Departments and to recommend specific formulae for determining the productivity index and other related parameters.

G. To examine desirability and the need to sanction any interim relief till the time the recommendations of the Commission are made and accepted by the Government. *A. vi substituted by Ministry of Finance Resolution No.5/2/20006-E.III (A) dated the 7th December, 2006. **A. vii substituted by Ministry of Finance Resolution No.5/2/2006-E.III (A) dated the 8th August, 2007.

The Commission will devise its own procedure and may appoint such Advisers, institutional consultants and experts, as it may consider necessary for any particular purpose. It may call for such information and take such evidence, as it may consider necessary. Ministries and Departments of the Government of India will furnish such information and documents and other assistance as may be required by the Commission.

The Government of India trusts that State Governments, Service Association and others concerned will extend to the Commission their fullest cooperation and assistance. The Commission will have its headquarters in Delhi.

The Commission will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending reports on any of the matters as and when the recommendations are finalized.Terms of Reference of the 7th Central Pay CommissionCabinet approved TOR of 7th CPC 7th Central Pay Commission

The Union Cabinet today gave its approval to the Terms of Reference of 7th Central Pay Commission (CPC) as follows:-

a) To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

i. Central Government employees-industrial and non-industrial;

ii. Personnel belonging to the All India Services;

iii. Personnel of the Union Territories;

iv. Officers and employees of the Indian Audit and Accounts Department;

v. Members of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of Parliament; and

vi. Officers and employees of the Supreme Court.

b) To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the Defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel.

c) To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d) To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.

e) To review the variety of existing allowances presently available to employees in addition to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure is so designed as to take these into account.

f) To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g) To make recommendations on the above, keeping in view:

i. the economic conditions in the country and need for fiscal prudence;

ii. the need to ensure that adequate resources are available for developmental expenditures and welfare measures; iii. the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications; iv. the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and v. the best global practices and their adaptability and relevance in Indian conditions.

h) To recommend the date of effect of its recommendations on all the above.The Commission will make its recommendations within 18 months of the date of its constitution.It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised. The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the 7th Central Pay Commission.

Background Central Pay Commissions are periodically constituted to go into various issues of emoluments structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required

Comparison of 7th CPC and 6th CPC Questionnaire

SIXTH CENTRAL PAY COMMISSIONQuestionnaire1.Comparison with public/private sectors

1.1 Should there be any comparison/parity between pay scales and perquisites in Government and the public/private sector?

1.2 Is it possible to quantify all other benefits, excluding pay, derived by employees in Government and the public and private sectors from security of tenure, promotional avenues, retirement packages, housing and other invisibles? In view of these benefits, can there be any fair comparison between the salaries available in the government vis--vis the salaries in the private sector?

1.3 In order to ensure a fair comparison based on principles of equity and social justice, would it not also be appropriate to take into account the economic conditions of large sections of the community that are less privileged than Government employees and many of whom live below the poverty line?

2.International comparisons2.1 Some countries have raised civil service pay scales almost to levels prevalent in the private sector on the hypothesis that a well-paid bureaucracy is likely to be honest and diligent. To what extent would such a hypothesis be valid and how far would such a course of action be desirable?

3.Impact on other organizations3.1 Salary structure in the Central and State Governments is broadly similar. The recommendations of the Pay Commission are likely to lead to similar demands from employees of State Governments, municipal bodies, panchayati raj institutions & autonomous institutions

Their paying capacity is considerably limited. To what extent should this factor be considered in devising a reasonable remuneration package for Central Government employees?

4.Salaries4.1 How should we determine the salary to be paid to a Secretary in the Central Government? Please suggest an appropriate basic pay for a Secretary? Can appointment to this post be made on a contractual basis where salaries and tenure are linked to the performance in terms of achieving defined targets?

4.2 What should be the reasonable ratio between the minimum and the maximum of a pay scale?

4.3 Is it necessary to persist with a pre-determined minimum-maximum ratio on ideological considerations? Or is it more important to ensure efficient administration by preventing flight of outstanding talent from Government?

5.Relativities5.1 Employees in the Secretariat and analogous establishments are entitled to higher pay scales than the corresponding field functionaries. This was supposed to compensate them for the loss of certain facilities available to them in field assignments and the extra effort required for decision-making at the policy level. Are these factors valid even today particularly in the context of decentralization and devolution of administrative powers? Is this discrimination between field and secretariat functionaries even justified today?

6.Group-A Services6.1 Is there a case for a Unified Civil Service, merging therein all Central (both technical and non-technical) and All India Services, allowing vertical and horizontal movement? Or should there be two distinct streams, one embracing all the technical services and the other for non-technical services?

6.2 Do you feel that the pattern of pay scales for all Group A Services should be redesignated so as to attract candidates of the requisite caliber? Keeping in view some of the compensation packages being offered to fresh professionals by the private sector, what emoluments would you suggest for an entrant to a Group-A Service in Government?

7.Professional personnel7.1 Should there be a higher compensation package for scientists in certain specialized streams/departments like Department of Space, Department of Atomic Energy? If so, what should be the reasonable package in their case?

8.Classification of posts8.1 Presently, civilian posts in the Central Government are classified into four Groups (A, B, C & D) with reference to their scales of pay. The Fifth Central Pay Commission had recommended their reclassification into Executive, Supervisory, Supporting and Auxiliary Staff. Would you suggest any changes in the existing classification or should the classification recommended by Fifth Central Pay Commission be adopted with/without modifications?

9.Restructuring of Group C & D posts9.1 Should all lower Group C functionaries in the Secretariat be replaced by multi-functional Executive Assistants, who would be graduates and well versed in office work, secretarial skills and use of modern office equipment including computers? Should similar arrangements can be evolved for Group C posts in other organisations of Government?

9.2 Should a similar regrouping of Group D staff into fewer categories capable of performing diverse functions also be carried out?

10.Pay Scales10.1 How should a pay scale be structured? What is a reasonable ratio between the minimum and maximum of a pay scale?

10.2 The successive Pay Commissions have progressively reduced the number of distinct pay scales. The number of scales has therefore come down from more than 500 scales at the time of the Second Central Pay Commission to 51 scales before Fifth Central Pay Commission, which was brought down to 33 scales by the Fifth Central Pay Commission. The reduction in the number of pay scales brings in attendant problems like the promotion and the feeder grades coming to lie in the same pay scale, etc. Do you feel whether the existing number of pay scales should be retained or increased or decreased or whether the same should be replaced by a running pay scale?

11. Increments11.1 What should be the criteria for determining the rates and frequency of increments in respect of different scales of pay? Should these bear a uniform or varying relationship with the minima and/or maxima of the scales?

12.Revision of pay scales12.1 Is there any need to revise the pay scales periodically especially when 100% neutralization for inflation is available in form of dearness allowance?

12.2 How should pay be fixed in the revised pay scales? Should there be a point-to-point fixation? If not, please suggest a method by which it can be ensured that senior personnel are not placed at a disadvantage vis--vis their juniors and due weightage is given for the longer service rendered by the former.

13.Compensatory Allowances13.1 Is City Compensatory Allowance a sufficient compensation for the problems of a large city? If DA and HRA provide full neutralization, do you think CCA should continue? Is there a need for changing the basis of classification of cities and the rates of CCA? If so, please suggest the revised basis and rates.

14.Pay and perquisites for Armed Forces14.1 What should be the basis for determination of pay scales for Armed Forces Personnel?

What percentage weightage should be assigned to

(i) parity with civil services,

(ii) comparison with private sector,

(iii) special and hazardous nature of duties, (iv) short career span and (v) restricted rights?

14.2 How should the pay of a soldier, sailor and airman be determined? How should it relate to the minimum wage in Government and the pay of a constable in paramilitary or internal security forces?

15.Abolition of feudalism15.1 Should all vestiges of feudalism in the country like huge residential bungalows sprawling over several acres, large number of servants quarters, retinues of personal staff, bungalow peons, use of uniformed personnel as batmen or on unnecessary security or ceremonial duties etc. be abolished? Please make concrete suggestions.

16.Specific proposals16.1 In what manner can Central Government organizations functioning be improved to make them more professional, citizen-friendly and delivery oriented?

16.2 Please outline specific proposals, which could result in:

(i) Reduction and redeployment of staff,

(ii) Reduction of paper work,

(iii) Better work environment,

(iv) Economy in expenditure,

(v) Professionalisation of services,

(vi) Reduction in litigation on service matters,

(vii) Better delivery of service by government agencies to their users.

17.New concepts17.1 Do you think the concepts of contractual appointment, part-time work, flexible job description, flexi time etc. need to be introduced in Government to change the environment, provide more jobs and impart flexibility to the working conditions of employees?

17.2 For improving punctuality/introducing new concepts like flexi time, should biometric entry/exit be introduced?

17.3 What steps should be taken to ensure that scientists, doctors, engineers and other professionals with sophisticated education and skills are retained in their specialized fields in Government? Should they be appointed on contract with a higher status and initial pay, advance increments, better service conditions, etc.?

17.4 Should there be lateral movement from Government to non-Government jobs and vice versa? If so, in which sphere(s) and to what extent?

17.5 It has been suggested that existing Government employees should be encouraged to shift to employment on contract for specified periods in return for a substantially higher remuneration package. Would you agree?

18.Performance Appraisal18.1 In what way should be present system of performance appraisal be changed? Should be ACR be an open document?

18.2 How far has the introduction of self-assessment helped in the process of appraisal?

18.3 Should appraisal be done for an entire team instead of for individuals?

18.4 In what manner can Government employees be made personally accountable for their acts of omission or commission, without any special safeguards?

Would you recommend any amendments to Article 311 of the Constitution, Section 197 of the Code of Criminal Procedure, Section 17 and 19 of the Prevention of Corruption Act, 1988 and various rules relating to conduct of Government servants and disciplinary proceedings?

19.Holidays19.1 Kindly comment on the appropriateness of adopting a five-day week in Government offices when other sectors follow a six day week. Please also state whether the number of Gazetted holidays in Government offices should be reduced? Please also comment on the appropriateness of declaring Gazetted holidays for all major religious festivals.

19.2 What do you think is the state of work ethics and punctuality in Government offices? Kindly suggest ways of improving these

7thCENTRAL PAY COMMISSIONQuestionnaire

7th CPC Questionnaire1. Salaries1.1 The considerations on which theminimum salaryin case of the lowest Group C functionary and themaximum salaryin case of a Secretary level officer may be determined and what should be thereasonable ratio between the two.

1.2 What should be the considerations for determining salary for various levels of functions falling between the highest level and the lowest level functionaries?

2. Comparisons2.1 Should there be any comparison/parity betweenpay scales and perquisites between Government and the private sector? If so, why? If not, why not?

2.2 Should there at all be any comparison/parity between pay scales and perquisites between Government and the public sector? If so, why? If not, why not?

2.3 The concept of variable pay has been introduced in Central Public Sector Enterprises by the Second Pay Revision Committee. In the case of the Government is there merit in introducing a variable component of pay? Can such variable pay be linked to performance?

3. Attracting Talent3.1 Does the present compensation package attract suitable talent in the All India Services & Group A Services? What are your observations and suggestions in this regard?

3.2 To what extent should government compensation bestructured to attract special talent?

4. Pay Scales4.1 The 6th Central Pay Commission introduced thesystem of Pay Bands and Grade Payas against the system of specific pay scales attached to various posts. What has been the impact of running pay bands post implementation of 6th CPC recommendations?

4.2 Is there any need to bring about any change?

4.3 Did the pay bands recommended by the Sixth CPC help in arresting exodus and attract talent towards the Government?

4.4 Successive Pay Commissions have reduced the number of pay scales by merging one or two pay scales together. Is there a case for the number of pay scales/ pay band to be rationalized and if so in what manner?

4.5Is the grade pay concept working?If not, what are your alternative suggestions?

5. Increment5.1 Whether the present system of annual increment on 1st July of every year uniformly in case of all employeeshas served its purpose or not?Whether any changes are required?

5.2 What should be the reasonablequantum of annual increment?5.3 Whether there should be a provision of variable increments at a rate higher than the normal annual increment in case of high achievers? If so, what should be transparent and objective parameters to assess high achievement, which could be uniformly applied across Central Government?

5.4 Under the MACP scheme three financial up-gradations are allowed on completion of 10, 20, 30 years of regular service, counted from the direct entry grade.What are the strengths and weaknesses of the scheme?Is there a perception that a scheme of this nature, in some Departments, actually incentivizes people who do not wish to take the more arduous route of qualifying departmental examinations/ or those obtaining professional degrees?

6. PerformanceWhatkind of incentiveswould you suggest to recognize andreward good performance?

7. Impact on other organizationsSalary structures in the Central and State Governments are broadly similar. The recommendations of the Pay Commission are likely to lead to similar demands from employees of State Governments, municipal bodies, panchayati raj institutions & autonomous institutions. To what extent should their paying capacity be considered in devising a reasonableremuneration package for Central Govt. employees?

8. Defence Forces8.1 What should be the considerations for fixing salary in case of Defence personnel and in what manner does theparity with civil services need to be evolved, keeping in view their respective job profiles?

8.2 In what manner should theconcessions and facilities, both in cash and kind, be taken into account for determining salary structure in case of Defence Forces personnel.

8.3 As per the November 2008 orders of the Ministry of Defence, there are a total of 45 types of allowances for Personnel Below Officer Rank and 39 types of allowances for Officers. Does a case exist forrationalization/ streamlining of the current variety of allowances?

8.4 What are the options available for addressing the increasing expenditure on defence pensions?

8.5 As a measure of special recognition, is there a case to review the present benefits provided to war widows?

8.6 As a measure of special recognition, is there a case to review the present benefits provided to disabled soldiers, commensurate to the nature of their disability?

9. Allowances9.1 Whether the existing allowances need to be retained or rationalized in such a manner as to ensure that salary structure takes care not only of the job profile but the situational factors as well, so that thenumber of allowances could be at a realistic level?9.2 What should be the principles todetermine payment of House Rent Allowance?

10. Pension10.1 The retirement benefits of all Central Government employees appointedon or after 1.1.2004 a re covered by the New Pension Scheme(NPS). What has been the experience of the NPS in the last decade?

10.2 As far aspre-1.1.2004appointees are concerned, what should be the principles that govern thestructure of pension and other retirement benefits?

11. Strengthening the public governance system11.1 The 6th CPC recommended upgrading the skills of the Group D employees and placing them in Group C over a period of time.What has been the experience in this regard?11.2 In what way can Central Government organizations functioning be improved to make them more efficient, accountable and responsible? Please give specific suggestions with respect to:

a)Rationalisation of staff strength and more productive deployment of available staff;

b) Rationalisation of processes and reduction of paper work; and

c) Economy in expenditure.

12. Training/ building competence12.1 How would you interpret the concept of competency based framework?

12.2 One of the terms of reference suggests that the Commission recommend appropriate training and capacity building through a competency based framework.

a) Is the present level of training at various stages of a persons career considered adequate? Are there gaps that need to be filled, and if so, where?

b) Should it be made compulsory that each civil service officer should in his career span acquire a professional qualification? If so, can the nature of the study, time intervals and the Institution(s) whose qualification are acceptable, all be stipulated?

c) What other indicators can best measure training and capacity building for personnel in your organization? Please suggest ways through which capacity building can be further strengthened?

13. Outsourcing13.1 What has been the experience of outsourcing at various levels of Government and is there a case for streamlining it?

13.2Is there a clear identification of jobs that can be outsourced?14. Regulatory Bodies14.1 Kindly list out the Regulators set up under r Acts of Parliament, related to your Ministry/ Department. The total number of personnel on rolls (Chairperson and members + support personnel) may be indicated.

14.2 Regulators that may not qualify in terms of being set up under Acts of Parliament but perform regulatory functions may also be listed. The scale of pay for Chairperson /Members and other personnel of such bodies may be indicated.

14.3 Across the Government there are a host of Regulatory bodies set up for various purposes. What are your suggestions regarding emoluments structure for Regulatory bodies?

15. Payment of BonusOne of the terms of reference of the 7th Pay Commission is to examine the existing schemes of payment of bonus.What are your suggestions and observations in this regard7th CPC expected pay scales and a brief on Previous Pay Commissions

First Pay Commission

The first pay commission was constituted in 1946 and the government appointed Srinivasa Varadacharia as Chairman of this commission.The first pay commission was based upon the idea of living wages to the employees, this idea was taken from the Islington Commission and the commission observed that the test formulated by the Islington Commission is only to be liberally interpreted to suit the conditions of the present day and to be qualified by the condition that in no case should be a mans pay be less than a living wage.

The minimum basic pay for Class IV staff has been raised from Rs. 10/- to Rs. 30/- and for Class III from Rs. 35/- to Rs. 60/- per month.

The Commission had fixed Rs. 55/- as minimum wage (Rs. 30 plus Rs. 25 as Dearness Allowance). The recommendations were accepted and implemented in 1946.

Second Pay Commission

10 years after independence, the second pay commission was set up in August 1957. Shri Jaganath Das was appointed as Chairman of this Commission. The second pay commission finished its report within two years and submitted it to the Government. The recommendations of the second pay commission had a financial impact of Rs 396 million.The second pay commission reiterated the principle on which the salaries have to be determined. It stated that the pay structure and the working conditions of the government employee should be crafted in a way so as to ensure efficient functioning of the system by recruiting persons with a minimum qualification. The Commission revised the pay scales by merging 50% of the Dearness Allowance withbasic Pay and it recommended Rs. 80 as the minimum remuneration(Basic Pay Rs. 70plus DA Rs.10/-) payable to a Government employee.

Third Pay Commission

Shri. Raghubir Dayal was appointed as Chairman of the third pay commission. It was set up in April 1970 and gave its report in March 1973. The commission took almost 3 years to submit the report,. The main demand of employees for a need based minimum wage as per the norms of 15th Indian Labour Conference was accepted in principle even though Commission evolved its own concept of need based wage.

The Third Pay Commission recommended Minimum remuneration of Rs. 185 per month.

By taking into the consideration of employees views Government modified some of the recommendations of the Commission and minimum wage was raised from Rs. 185 per month to Rs. 196/- per month.

The pay scales of group D, C and B of Third Pay commission and IV pay commission given below. In the case of minimum basic pay of each scale of Pay in the two pay commissions recommended scales given below , it is to be kept in mind that 4th CPC pay was increased by 2.8 to 3.8 times from 3rd CPC.

III PAY COMMISSION VS IV PAY COMMISSION GROUP D,C and B

S.NIII PAY COMMISSION PAY SCALESIV PAY COMMISSION PAY SCALEINCREASE (X) TIMES

1.a) 196-3-220-EB-3-232750-12-870-EB-14- 9403.8

b) 200-3-212-4-232-EB-4-240(SG)

2.a) 200-3-212-4-232-EB-4-240775-12-955-EB-14-10253.8

b) 200-3-206-4-234-EB-4-250

3.a).210-4-250-EB-5-270800-15-1010-EB-20-11503.8

b) 210-4-226-EB-4-250-EB-5290

4.225-5-260-6-EB-6-308825-15-900-EB-20-12003.7

5.260-326-EB-8-350950-20-1150-EB-25-14003.7

6.a) 290-6-326-EB-8-350950-20-1150-EB-25-15003.4

b) 260-6-290-EB-6-326-8-366-EB-8-390-10-400

7.260-8-300-EB-8-340-10-380-EB-10-430975-25-1150EB-30-15403.7

8.330-8-370-10-400-EB-10-4801200-30-1440EB-30-1803.6

9.a) 330-10-380-EB-12-500-EB-15-5601200-30-1560-EB-40-20403.6

10.a) 380-12-500-15-5301320-30-1560-EB-40-20403.5

b) 380-12-500-EB-15-560

11.a)380-12-440-EB-14-560-EB-20-6401350-30-1440-40-1800-EB-50-22003.5

b) 425-15-530-EB-15-560-20-600

12.c) 425-15-560EB-20-6401400-40-1800-EB-50-23003.3

b) 425-15-500-EB-15-560-20-700

c) 455-15-560-20-700

13.a) 425-15-500-EB-15-560-20-640-EB-20-700-25-7501400-40-1600-50-2300-EB-60-26003.3

b) 425-15-500-EB-15-560-20-700-EB-25-800

c) 470-15-530-EB-20650-EB-25-750

14.a) 550-20-650-257501600-50-2300-EB-60-26602.9

b) 550-20-650-25-800

15.a) 500-20-700-EB-25-9001640-60-2600-EB-75-29003.1

b) 550-25-750-EB-30-900

16.a) 650-30-74035-800-EB-40-9602000-60-2300-EB-75-32002.8

b) 650-30-740-35-880-EB-40-1040

c) 700-30-760-35-900

d) 775-35-880-40-1000

17.650-30-740-35-810-EB-880-40-1000-EB-40-12002000-60-2300-EB-75-3200-100-35003.0

18.a) 840-40-10402375-75-3200-EB-100-35002.8

b) 840-40-1000-EB-40-1200

19.a) 650-30-740-35-880-EB-40-10402000-60-2300-EB-3200-100-35003.0

b) 650-30-740-35-810-EB-35-880-40-1000-EB-40-1200

FOURTH PAY COMMISSION

The Fourth Pay Commission was constituted in June 1983 and its Chairman was Shri. P N Singhal. But the report of 4th CPC was submitted to government in three phases within the period of four years. There from it was started maintaining huge gap between lowest grade and highest grade as for as pay is concerned.

There was a huge difference in basic pay between lowest grade and highest grade in IV pay commission pay scales. The basic pay of lowest grade was Rs.750, where as highest grade was Rs.9000. The pay of top most grade was 12 times higher than the pay of Group D employee. The Fourth CPC had recommended the government to constitute permanent machinery to undertake periodical review of pay and allowances of Central Government employees, but which got never implemented.

FIFTH PAY COMMISSION

The Fifth Pay Commission was set up in 1994. The chairman of fifth pay commission was Justice S. Ratnavel Pandian. The commission gave its report in January 1997. Government accepted most of the recommendations and issued appropriate order in July 1997. The recommendations were implemented with effect from 1-1-1996. It recommended to reduce the number of pay scale from 51 to 34. It is noted that about 93% of the employees were in Group 3 and Group 4

The minimum Starting Pay has been revised from Rs. 750/ to Rs. 2550/-. In this, the pay of 5th CPC scale were about 3 times higher than the pay of IV CPC pay Scale. The pay scale starts from Rs.2550 and ends up with Rs.30000. The hike of 12 times between low level and top level was also maintained in V pay commission.

The pay scale of IV pay commission and V pay commission are given below. we need all this reference for working out to reach a formula to infer what would be the increase in VII pay commission.

IV CPC PAY SCALES VS V CPC PAY SCALES

FOURTH PAY COMMISSION PAY SCALESFIFTH PAY COMMISSION PAY SCALESINCREASE X TIMES

1750-12-870-14-940S-12550-55-2660-60-32003.4

2775-12-871-14-1025S-22610-60-3150-65-35403.3

3800-15-1010-20-1150S-32650-65-3300-70-40003.3

4825-15-900-20-1200S-42750-70-3800-75-44003.3

5950-20-1150-25-1400 950-20-1150-25-15001150-25-1500S-53050-75-3950-80-45903.2

6975-25-1150-30-1540 975-25-1150-30-1660S-63200-85-49003.3

71200-30-1440-30-18001200-30-1560-40-2040 1320-30-1560-40-2040S-74000-100-60003.3

81350-30-1440-40-1800-50-2200 1400-40-1800-50-2300S-84500-125-70003.3

91400-40-1600-50-2300-60-2600 1600-50-2300-60-2660S-95000-150-80003.5

101640-60-2600-75-2900S-105500-175-90003.35

112000-60-2120S-116500-200-69003.25

122000-60-2300-75-3200 2000-60-2300-75-3200-3500S-126500-200-105003.25

132375-75-3200-100-3500 2375-75-3200-100-3500-125-3750S-137450-225-115003.13

142500-4000 (proposed new pre-revised scale)S-147500-250-120003

152200-75-2800-100-4000 2300-100-2800S-158000-275-135003.5

162630/- FIXEDS-169000/- FIXED3.42

172630-75-2780S-179000-275-95503.42

183150-100-3350S-1810325-325-109753.2

193000-125-3625 3000-100-3500-125-4500 3000-100-3500-125-5000S-1910000-325-152003.3

203200-100-3700-125-4700S-2010650-325-158503.32

213700-150-44503700-125-4700-150-5000S-2112000-375-165003.24

223950-125-4700-150-5000S-2212750-375-165003.22

233700-125-4950-150-5700S-2312000-375-180003.24

244100-125-4850-150-5300 4500-150-5700S-2414300-400-183003.4

254800-150-5700S-2515100-400-183003.1

265100-150-5700 5100-150-6150 5100-150-5700-200-6300S-2616400-450-200003.2

275100-150-6300-200-6700S-2716400-450-209003.2

284500-150-5700-200-7300S-2814300-450-224003.1

295900-200-6700 5900-200-7300S-2918400-500-224003.1

307300-100-7600S-3022400-525-245003

317300-200-7500-250-8000S-3122400-600-260003

327600/- FIXED7600-100-8000S-3224050-650-260003.1

338000/- FIXEDS-3326000/- FIXED3.2

349000/- FIXEDS-3430000/- FIXED3.3

SIXTH PAY COMMISSION

Initially the then government refused to set up sixth pay commission to review the pay and allowances of central government employees. The then finance minister told that there was no need to constitute next pay commission since 50 % dearness allowance was already merged with the basic pay. The employees had threatened to go on a nationwide strike if the government failed to set up 6th pay commission. In July 2006, the Cabinet approved setting up of the sixth pay commission. This commission has been set up under the Chairmanship of Justice B.N.Srikrishna with a timeframe of 18 months to submit the report. The cost of hikes in salaries is anticipated to be about Rs. 20,000 crore for a total of 3.5 million government employees. The commission submitted the Report to the Government on March, 24, 2008.

The Sixth Pay Commission mainly focused on removing ambiguity in respect of various pay scales and mainly focused on reducing number of pay scales .It recommended for removal of Group-D cadre.

The Fifth CPC had compressed many scales. The number of pay scales was reduced from 51 pay scales as on 31.12.1995 to 34 pay scales by the Fifth CPC. In many cases, this led to the promotion and feeder cadres being placed in an identical pay scale. Although Department of Expenditure issued orders that existence of the feeder and promotion posts in the same pay scale will not constitute an anomaly, however, these orders have consistently been rejected by the various courts of this country. The sixth pay Commission, therefore, decided to evolve a new system of pay scales that would effectively address most of the existing anomalies.

To remove stagnation, introduction of running pay bands for all posts in the Government presently existing in scales below that of Rs.26,000 (fixed).

The total number of grades reduced to 20 spread across four distinct running pay bands; one Apex Scale and another grade for the post of Cabinet Secretary/equivalent as against 35 standard pay scales existing earlier.

Four distinct running pay bands being recommended one running band each for all categories of employees in groups B and C with 2 running pay bands for Group A posts.

Annual increments to be paid in form of three percent of the total of pay in the Pay Band and the corresponding grade pay. The date of annual increments, in all cases, is first of July. Employees completing six months and above in the scale as on July 1 will be eligible.

The revised pay bands have been implemented retrospectively from 1.1.2006. The Fifth CPC also had recommended implementation of the next Pay Commissions revised pay scales from 1.1.2006. This was also in consonance with demands of a majority of the Associations of Government employees that had sought implementation of Sixth CPC revised pay scales from 1.1.2006.

Minimum salary at the entry level of PB-1 pay band is Rs.7000 (Rs.5200 as pay in the pay band plus Rs.1800 as grade pay). Maximum salary at the level of Secretary/equivalent is Rs.80000. The minimum: maximum ratio 1:12. The increase from V CPC to VI CPC in all grades starts from 2.4 times to 3.7 times. The increase ratio between 5th pay commission and 6th pay commission is 1:3

FIFTH PAY COMMISSION PAY SCALE Vs SIXTH PAY COMMISSION PAY STRUCURE

V CPC Pay ScaleSixth CPC Pay StructureIncrease

(X)Times

Sl. No.Post/ GradeScale of PayName of Pay Band/ ScaleCorresponding Pay BandsCorresponding Grade PayEntry Grade +band pay

(1)(2)(3)(4)(5)(6)

1S-12550-55-2660-60-3200-1S4440-74401300

2S-22610-60-3150-65-3540-1S4440-74401400

3S-2A2610-60-2910-65-3300-70-4000-1S4440-74401600

4S-32650-65-3300-70-4000-1S4440-74401650

5S-42750-70-3800-75-4400PB-15200-20200180070002.54

6S-53050-75-3950-80-4590PB-15200-20200190077302.53

7S-63200-85-4900PB-15200-20200200084602.64

8S-74000-100-6000PB-15200-20200240099102.47

9S-84500-125-7000PB-15200-202002800113602.52

10S-95000-150-8000PB-29300-348004200135002.7

11S-105500-175-9000PB-29300-348004200

12S-116500-200-6900PB-29300-348004200

13S-126500-200-10500PB-29300-348004600171402.63

14S-137450-225-11500PB-29300-348004600

15S-147500-250-12000PB-29300-348004800181502.42

16S-158000-275-13500PB-29300-348005400210002.62

17New Scale8000-275-13500(Group A Entry)PB-315600-391005400

18S-169000PB-315600-391005400

19S-179000-275-9550PB-315600-391005400

20S-1810325-325-10975PB-315600-391006600255302.47

21S-1910000-325-15200PB-315600-391006600

22S-2010650-325-15850PB-315600-391006600

23S-2112000-375-16500PB-315600-391007600295002.45

24S-2212750-375-16500PB-315600-391007600

25S-2312000-375-18000PB-315600-391007600

26S-2414300-400-18300PB-437400-670008700461003.23

27S-2515100-400-18300PB-437400-670008700

28S-2616400-450-20000PB-437400-670008900491002.99

29S-2716400-450-20900PB-437400-670008900

30S-2814300-450-22400PB-437400-6700010000530003.7

31S-2918400-500-22400PB-437400-6700010000

32S-3022400-525-24500PB-437400-6700012000591002.63

33S-3122400-600-26000HAG+ Scale75500- (ann increment @ 3%) -80000Nil3.13

34S-3224050-650-26000HAG+ Scale75500- (annual increment @ 3%) -80000Nil3.13

35S-3326000 (Fixed)Apex Scale80000 (Fixed)Nil3.07

36S-3430000 (Fixed)Cab. Sec.90000 (Fixed)Nil3

7CPC estimated Pay Scales

Obviously it is simple thing, we can say it a mathematical coincidence that we have in common in all previous pay commission, but we cannot neglect this. Because it was there, every time it is noticed that the revised pay was approximately three times higher than its pre revised pay. Apart from all the factors which has been used to determine the pay revision, we can use this simple formula common multiplying factor to know the 7th pay commission pay scale . If next pay commission prefer to continue the same running pay band and grade pay system for seventh pay commission also, the pay structure may be like the following projected figures given below, using common multiplying factor 3. The Following is only the projected figure using common multiplying factor 3

SIXTH CPC PAY STRUCTUREPROJECTED PAY STRUCTURE FOR NEXT (VII) PAY COMMISSION

Name of Pay Band/ ScaleCorresponding Pay BandsCorresponding Grade PayEntry Grade +band payProjected entry level pay using uniform multiplying factor` 3

Band PayGrade PayEntry Pay

PB-15200-202001800700015600-60600540021000

PB-15200-202001900773015600-60600570023190

PB-15200-202002000846015600-60600600025380

PB-15200-202002400991015600-60600720029730

PB-15200-2020028001136015600-60600840034080

PB-29300-3480042001350029900-1044001260040500

PB-29300-3480046001714029900-1044001380051420

PB-29300-3480048001815029900-1044001440054450

PB-315600-3910054002100029900-1044001620063000

PB-315600-3910066002553046800-1173001980076590

PB-315600-3910076002950046800-1173002280088500

PB-437400-67000870046100112200-2010026100138300

PB-437400-67000890049100112200-2010026700147300

PB-437400-670001000053000112200-2010030000159000

HAG67000- (ann increment @ 3%) -79000Nil201000

HAG+ Scale75500- (ann increment @ 3%) -80000Nil226500

Apex Scale80000 (Fixed)Nil240000

Cab. Sec.90000 (Fixed)Nil270000

Source: GServantshttp://www.gservants.com/