7th Pay commission House Rent Allowance - Expectation & suggestions

7th Pay commission  House Rent Allowance HRA : HRA is the most important factor of allowance issuing to existing Central Government employees, it is given for compensate to live in rented house. The HRA rules are allowed for getting allowance even if he/she living in own house.

A major changes had been made in 6th CPC on HRA rules. The percentages were prescribed on basic pay according to the cities in India. The cities are classified as X, Y and Z and the rates of percentage respect of the cities are 30%, 20% and 10% on basic pay (Grade pay including).

Central Government employees are expecting changes in the rate of percentage according to cities.

Suggestions from various unions to 7th pay commission House Rent Allowance  7th pay commission House Rent Allowance HRA should be based on actual rent prevailing in that particular area.

7th Pay Commission – Expectations and Suggestions

1.  The anomaly in  CSSS and other cadres that persons who got promotion will be getting just one increment and Grade Pay and the person who got selected will be getting the entry pay in that pay band which is creating high imparity in the pay of two persons  though they both are working in the same pay scale (pay band).  My suggestion that both the persons either promotee or direct recruitee should get the entry pay with the respective grade pay.

2.  Another anomaly is that in CSSS cadre those who promoted between feb 2006 and Aug, 2008 got enhancement in their pay and the persons who  got promotion even in the month of Sept, 2008 are deprived of the same.  All the persons under the purview of CSSS cadre should be given the same pay as those who got promotion till Aug, 2008.  You can restrict this thing till December, 2010 as cut of date.

3.  DA should be based on the price of day to-day price index of essential commodities.

4.  HRA should be based on actual rent prevailing in that particular area.

5.  Pay Commission should be set up in every 6-8 years as is being done in PSUs.

6.  In every pay commission the pay should be increased at least 3 times.

7.  On promotion  next pay band’s entry pay should be given, not only the grade pay with one increment.

Seventh Pay commission pay scales - Expected in 2016-17 for Central Government Employees

Seventh Pay commission pay scales - 7th Pay Commission – Expected Pay Scales shows significant raise in salary for Central Government Employees

Hurry..! 7th Pay Commission’s report to be implemented from financial year 2016-17

Estimated Pay Scales shows substantial increase in salary.

New Delhi, There is a good news for Central Government employees that 7th Central Pay Commission’s report will be implemented with effect from 01.01.2016. Central Government employees are expecting merger of dearness allowance, increase in other allowances such as house rent, children education allowances etc. with the implementation of this report.

                         Seventh Pay commission pay scales

With the beginning of 2016, pay scales proposed by 7th pay commission will be implemented. Our reports suggests that expected pay structure would be similar that we have produced. If this happens then there would be three times jump in the salaries of central government employees.

7th pay commission has reiterated that ratio between the minimum and maximum pay scales proposed by 6th pay commission was 1:12. It has also reiterated that there are lots of anomalies left, after the implementation of 6th pay commission and those anomalies will certainly be taken care of. It is expected that ratio between the minimum and maximum pay would be 1:13. This will certainly be annoying factor for employees unions.
Employees unions are studying estimated pay scales and would certainly be registering its suggestions soon.
Till date central government has notified six pay commissions before notifying seventh in February 2014. First central pay commission was notified in 1946, second CPC in 11957, Third CPC in 1970, Fourth CPC in 1983, Fifth in 1994 and sixth in 2006.

Report of sixth pay commission was implemented w.e.f. 01.01.2016. Sixth pay commission had proposed many new thing such as children education allowance and transport allowance.

It further proposed increase in all allowances by 25% with the increase in dearness allowance to 50% to counter rising inflation. It had also proposed two year child care leave for women employees. These measures were widely welcomed by central government employees. These measures were widely welcomed by central government employees. 6th pay commission had also proposed to modify assured career progression scheme and introduced Modified Assured Career Progression Scheme (MACP).

Now central government employees are expecting modification in allowances and schemes. Employees are expecting increase in house rent, children education allowance, transport allowance and other allowances. Employees are also expecting that currency of Modified Assured Career Progression Scheme will be reduced to five years from 10 years. Employees unions are demanding up gradation in grade pay after five years, if the employee does not get the benefit promotion in five years time.

Central government employees are also expecting that 7th pay commission would recommend permanent solution to merger of dearness allowance with basic pay if it crosses 100% mark.

Employees are also expecting increase in annual increment from 3% to 5%. One bone of contention for central government employees is Grade pay Rs. 5400. This grade pay falls both in PB-2 and PB-3.
Employees are expecting increase in grade pay Rs.5400 which falls in PB-3 so that on promotion employees get increase in grade pay along with increase in increment @5% (current increment is 3%).

City compensatory allowance was stopped by 6th pay commission. Employees’ unions wants that city compensatory allowance be restored according to the class of cities.

Expectations are very high let’s see how much 7th pay commission fulfills those. But it is certain that 7th pay commission will bring cheers to around 80 lakhs central government employees and pensioners.

7th Pay Commission Pay calculator and formula for Pay fixation

7th Pay Commission  Pay calculator and formula for pay fixation.The expected 7th CPC basic pay given below is created by comparing the previous pay commissions. This is a purely a personal view of Govtempdiary.com.Let us have a look at how the Basic Pay was determined in the previous pay commissions.

How the 2nd CPC Pay Fixation was created?

The 2nd Pay Commission was created from the 1st pay commission using a point-to point method.

Example sample table:

First pay commission	Second pay commission
Rs 30.5-35	Rs 70-1-80-EB-1-85
Rs 35-1-50-2-60	75-1-85-2-95 EB -3-110
Rs 600-10-300-15-450	Rs 325-15-475-EB-20-575

We have attached some samples of the 2nd Pay Commission Pay Scales & fixation Orders(1947)

How the 3rd CPC Pay Fixation formula was created?

Basic pay on 1.1.1973	*****
Dearness pay as on .1.1.1973	*****
Dearness allowance as on 1.1.1973	*****
Interim relief	*****
Total amount	*****
Add 5% of basic pay	*****
Total (New Basic)	*****

When we study the Pay Fixation Formula of the 3rd Pay Commission given above, we will come to know that the Basic Pay provided in the 3rd Pay Commission is the sum of the 2nd Pay Commission’s Basic Pay, Dearness Pay, Dearness Allowance and Interim Relief and 5% of 2nd Pay Commission’s Basic Pay. 

How the 4th CPC Pay Fixation formula was created?

Basic pay as on 1.1.1986	****
DA ,ADA,and adhoc DA	****
Interim relief first	****
Interim relief second	****
Add 20% basic pay	****
Total (New Basic)	****

When we examine the 4th Pay Commission Pay Fixation shown above, we can understand that the Basic Pay of the 4th Pay Commission is arrived by adding the 3rd Pay Commission’s Basic Pay along with Dearness Allowance, Interim Relief I and II and 20 % of the 3rd Pay Commission’s Basic Pay.

Next let us see how the 5th CPC pay fixation was made?

Basic pay on 1.1.1976	****
Dearness Allowance	****
First interim relief	****
Second interim relief	****
Add 40% basic pay	****
If increment (1,2 ,3)	****
Total (New Basic)	****

If we study the Pay Fixation formula of the 5th Pay commission, we can find that the Basic Pay of the 5th Pay Commission is fixed by combining the 4th Commission Basic Pay, Dearness Allowance, Interim Relief I and II and by adding 40% of the 4th Commission’s Basic Pay.

How the 6th CPC pay fixation formed?

Pay fixation in case where pay scales have been merged e.g pre revised pay scale of Rs of 5000-8000,5500-9000 and Rs 6500-10500

Existing scale pay	Rs 5000-150-8000
Pay band applicable	PB-2 Rs 9300-34800
Merged with the scale of pay	Rs 6500-200-10500
Existing basic pay on 1.1.2006	Rs 5600
Pay after multiplication by a factor of 1.86 (How to come 1.86) BASIC PAY+DP+DA 5600+2800+2016=10416(1.86)	Rs 10416(Rounded off to Rs 10420)
Pay in the pay band after including benefit	Rs 10420
40% of the maximum of the basic pay in each of the pre-revised pay scale  (10500*40/100=4200)click here to get full details How to come grade pay this amount(click here)	Rs.4200
Revised basic pay –Total of pay in pay band and grade pay(New Basic)	Rs.14620

 If you look at the 6th Pay Commission Pay Fixation formula, we can find a difference in that the Basic Pay is divided in to two as to Pay Band and Grade Pay. Based on this, the Pay Band is arrived by summing up the 5th Pay Commission Basic Pay, Dearness Pay and Dearness Allowance (1.86 Multiple Factor). 40% of the Maximum of pre revised Pay Scale of the 5th Pay Commission is added to the Grade Pay that is paid as usual and the Grade Pay is determined.

7th Pay Commission  Pay Calculated Project

For the kind attention of the viewers, the 7th Pay Commission Pay Calculator has been created on the basis of the already created 7th Pay Commission projected pay scale. Moreover, in this calculator,Pay Band and Grade Pay are not shown separately. This is because in each Pay Commission the new Basic Pay is arrived by adding a certain percentage from the previous Basic Pay along with Dearness Allowance and interim Relief.

In the 6th Pay Commission alone the previous Basic Pay and DA has been changed to Pay Band and some percentage of the additional pay is given as Grade Pay. We have explained all this very clearly in the timetable given below.

The percentage of pay added to each Pay Commission has come from within itself. Based on this, in the calculator given below, we have calculated the pay in three ways and provided options for 50%, 60% and 70%. In each Pay Commission, some Pay Scales are annexed. In such Pay Scales, there is possibility to get more benefits. Due to this reason, we have considered 60 to 70% as the rise and roughly explained the overall benefits. We have not specified the Grade Pay and Pay Band separately.

7th Pay Commission latest news - Expected month of Implementation from April 2016

The 7th Pay Commission Latest news - 7th Pay Commission drafted in to make a new pay structure for the 30 lakh Central government employees and all most 20 lakh pensioners would not be able to submit its report in August this year. Now  the 7th Pay Commission is likely to seek extension till October 2015 .

Expected month of Implementation from April 2016

The reports of Seventh Pay Commission will be implicated from April next year as Finance Minister Arun Jaitley said in the Parliament on February 27, “The 7th Pay Commission impact may have to be absorbed in 2016-17.”

Finance Minister Arun Jaitley said above statement in his pre-budget speech. His statement indicates that the government may implement Seventh Pay Commission report from April 2016.

Present Position of 7th Pay Commission

The UPA government formed the Seventh Pay Commission on 28 February 2014 under chairman justice Ashok Kumar Mathur with a timeline of 18 months to make its recommendations. According to present position, the commission will take at least 20-24 months.Present Position of 7th Pay Commission

However, the Sixth Pay Commission had submitted its report within 18 months.

As a result of the recommendations of the Sixth Pay Commission, pay and allowances of the central government employees more than doubled as per Fourteenth Finance Commission estimates.

As such, the central government employees are expected to get 100 percent salary hike under the recommendations of the Seventh Pay Commission.

Issues like inflation, the government’s financial position and salary structure of government employees in other countries would also be considered as parts of pay panel recommendations.

 Link the Pay with Productivity

The Fourteenth Finance Commission asked the pay panel to link the pay with productivity, which will be the biggest hurdle for central government employees to be got over to get salary hike.

It is interesting to note that the earlier governments never accepted to link the pay with productivity.