7th CPC Multiplication Factor Clarification
After the release of 7th CPC notification, there has been some confusion on the air about the multiplier percentage (%) which should be used to calculate the revised basic pay.
We have gone through the report and believe the confusion is created because of the below matrix (Table 4: Rationalisation Applied in the Present Pay Structure) which is displayed in the page no 73 of the report, where it shows different multiplying factor for different Pay Band and Grade Pay.
However, in Page 77 (5.1.28 – Pay Fixation in the New Pay Structure) the commission wants every employee to multiply his/her basic pay with a factor of 2.57 and match the nearest highest value corresponding to their Pay Brand and Grade Pay.
Pay Fixation in the New Pay Structure
5.1.28 The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57. The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay. If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. A couple of examples are detailed below to make the process amply clear.
5.1.29 The pay in the new pay matrix is to be fixed in the following manner:
Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’.
Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.
Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level.
We believe the multiplying factor is 2.57 for the existing employee is because of the example which is also used in the report, do refer the page no: 78, Example I.
After applying the multiplication factor of 2.57, the output value should be referred in the fitment matrix as elaborated in the example
i. For example an employee H is presently drawing Basic Pay of ₹55,040 (Pay in the Pay Band ₹46340 + Grade Pay ₹8700 = ₹55040). After multiplying ₹55,040 with 2.57, a figure of ₹1,41,452.80 is arrived at. This is rounded off to ₹1,41,453.
ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.
iii. In the column for level 13, the figure closest to ₹1,41,453 is ₹1,41,600.
iv. Hence the pay of employee H will be fixed at ₹1,41,600 in level 13 in the new pay matrix as shown below:
In other examples which are illustrated in the report also highlight the usage of 2.57 as multiplying factor for the current employees.
5.1.30 As part of its recommendations if Commission has recommended any upgradation or downgrade in the level of a particular post, the person would be placed in the level corresponding to the newly recommended grade pay.
i. Take the case of an employee T in GP 4200, drawing pay of ₹20,000 in PB-2. The Basic Pay is ₹24,200 (20,000+4200). If there was to be no change in T’s level the pay fixation would have been as explained in Example I above. After multiplying by 2.57, the amount fetched viz., ₹62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at ₹62,200.
ii. However, assuming that the Commission has recommended that the post occupied by T should be placed one level higher in GP 4600. T’s basic pay would then be ₹24,600 (20000 + 4600). Multiplying this by 2.57 would fetch ₹63,222.
iii. This value would have to be located in the matrix in Level 7 (the upgraded level of T).
iv. In the column for Level 7 ₹63,222 lies between 62200 and 64100. Accordingly, the pay of T will be fixed in Level 7 at ₹64,100.
If you look at the Example II, they have referred to any Employee “T” in GP “4200” and used the multiplying factor as 2.57, however if we were supposed to use the Table 4 (Table 4: Rationalisation Applied in the Present Pay Structure) then the multiplication factor should have 2.62 which is not been applied and hence we believe the multiple factor is 2.57.
With the above example and the content we believe that multiplying factor for the existing employee should be 2.57 and our calculator is been built on this basis.
The differential percentage should be used for Entry Pay as per page no 79, point (5.1.31).
5.1.31 The Commission has received numerous representations on the issue of fixation of entry pay for direct recruits at a level higher than those promoted into the same level from below. In the existing system, the entry pay for new or direct recruits takes into consideration the weightage given to qualifying service prescribed by DoPT, whereas for those reaching the grade through promotion from lower grade, the entry pay is fixed at the minimum of the pay band plus grade pay corresponding to the new grade. The entry pay therefore varies, and is different for those entering a level directly and those getting promoted into it. There have been demands for a uniform entry pay for all.
Disclaimer: The above statement is prepared based on the report and with certain assumptions, readers are request to go through the report and come to their own conclusion. .
We request readers to provide your valuable feedback or any incorrect interpretation through comments on this article.