7CPC - Increase in salary is 14.2 % and some loses !

7CPC – The whole of the media was & is busy in publishing as the increase in salary as 23.55%. However, the real calculation puts it to 14.29%.

The recommended pay hike for the Central staff by the 7CPC, though widely criticized by the employees have received a contrasting response by the media. Many of the media reports described it as a Bonanza for the Government employees without going into the facts or without any basic knowledge regarding the crucial calculations.

The whole of the media was & is busy in publishing as the increase in salary as 23.55%. However, the real calculation puts it to 14.29%. There is a vast difference in minimum pay between the 7CPC and its predecessor panel. However, none of the media reports reveal it.

The media is unaware of the shocking fact that once the 7CPC  comes into effect from January 1, 2016, many of the government servants will actually be taking home lower salary than what they are currently drawing under the 6CPC ! This would be primarily because of increase in deductions like CentralGovernment Employees Group Insurance Scheme and NPS.

As per the 7CPC  report, close to 88% of all the employees is Group C while only 3% is Group A and 9% from Group B. Now let us see how the 88% percent of the Central Government Employees have been deceived by the 7CPC.

Let us take an example of a Group C employee appointed in GP Rs.1800 on 1st August 2015, and let us assume he has been provided a government quarter.

What he would be drawing before the implementation of 7CPC ?

His basic Pay : Rs.5200 – 20200 + GP Rs.1800/- = Rs.7000/-
Add DA 125% = Rs.8750/-
HRA = NIL (Availed Government quarter)
TA = Rs.600 + DA = Rs.1350/-
Total Gross Income = Rs.17,100/-

Deductions :-

NPS 10% of basic Pay  =  Rs.700/-
CGEGIS   =  Rs.30/-
Total Deduction ; Rs.730/- (700 + 30)

Net Pay – Rs.17100 – RS.730  = Rs.16370/-

What he would be drawing after the implementation of 7CPC?

Minimum Basic Pay  = Rs.18,000/-
HRA = NIL (Availed Government quarter)
DA = NIL
TA = Rs.1350/-

Total Gross Income = Rs.19,350/-

Deductions :-

NPS = Rs.1800/-
CGEGIS = Rs.1500/-
Total Deduction ; Rs.3300/- (1800 + 1500)

Net Pay – Rs.19350 – Rs.3300 = Rs.16050/-

Now Calculate, he was earning Rs.16,370/- before the implementation of the 7CPC. However, after the implementation of the 7CPC in its present form, he will start earning Rs.16,050/-. What Bonanza he gets ?

He loses Rs.320/- ; do you call this a pay hike?

{ from GConnect.in  }