7th CPC Pay Fixation: Bunching of stages in revised
structure - Fin Min issues OM with clarification in details
for implementation.
No.1-6/2016-IC
Government of India
Ministry of Finance
Department of Expenditure
Implementation Cell, 7th CPC
North Block, New Delhi,
3rd August, 2017
OFFICE MEMORANDUM
Subject:
Recommendations of the 7th Central Pay Commission
(CPC) - bunching of stages in the revised pay structure under
Central Civil Services (Revised Pay) Rules, 2016.
With reference to the subject mentioned above and in
continuation of this Department's OM of even number dated
07.09.2016 and 13.06.2017, detailed instructions are hereby
being issued on the application of the benefit on account of
bunching of stages while fixing the pay in the revised pay
structure as a response to a large number of references
received from Ministries/Departments.
2. The provisions giving effect to the recommendations of the
7th CPC on extending the benefit on account of bunching were
notified vide DoE OM. dated 07.09.2016. Benefits on account
of bunching have been extended during the initial fixation of
pay in the revised pay structure while implementing the
recommendations of earlier CPCs also. Bunching occurs in the
fixation of pay when the pay at two or more consecutive
stages in a Pay Scale/ Grade Pay in the pre revised scale get
fixed at the same stage in the corresponding Pay Scale/ Level
in the revised pay structure.
3. The modalities of determining the extent of bunching and
the nature of benefits to be extended on account thereof,
based on the recommendations of the CPCs, have differed
across different Pay Commission periods. While the 5th CPC
recommended that benefits be extended when more than four
stages get bunched, the 6th CPC recommended that benefits be
extended when two or more stages get bunched. The fitment
tables drawn by the 6th CPC and notified by the Government
subsequently provided for the benefit of bunching only when
more than two stages were bunched. As regards the benefits to
be extended on account of bunching, the 5th CPC recommended
benefit of one increment for every four consecutive stages
bunched, the 6th CPC recommended benefit of one increment for
every two consecutive pay stages bunched. For HAG scales,
however, benefit of one increment was given at each of the
pay stages in the 6th CPC pay structure.
4. In terms of the DoE OM. dated 07.09.2016 based on the 7th
CPC recommendations, bunching occurs when two or more stages
get bunched and benefit of one increment is to be given for
every two stages bunched. These provisions are to be applied
while revising the pay from the 6th CPC regime to the 7th CPC
regime. In the 6th CPC pay structure, about 35 pay scales
existing in the 5th CPC pay structure were replaced by a
system of running pay bands recommended by the 6th CPC. The
6th CPC pay structure consisted of 19 grades spread across
four distinct pay bands and 4 distinct scales including two
fixed scales. The 6th pay structure being replaced by the 7th
CPC recommended Pay Matrix, thus, consists of 4 Pay Bands
with 15 levels of Grade Pay, along with 4 standalone scales,
viz., HAG scale, HAG+ scale, Apex scale (fixed) and the scale
of Cabinet Secretary (fixed).
5. While in the 5th CPC structure, the stages in every pay
scale were well defined, the stages were not well defined in
the 6th CPC structure. The pay was to be fixed in the running
Pay Band by rounding off to the next higher multiple of 10.
Every multiple of 10 was a pay stage in the 6th CPC regime.
However, all consecutive 10 rupee stages for any Grade Pay
cannot be taken as consecutive stages for the purpose of
bunching in reference to the 7th CPC recommendations as is
also clear from the illustration contained in para 5.1.37 of
the 7th CPC Report. Based on the illustration contained in
para 5.1.37 of the 7th CPC Report, Department of
Expenditure’s OM. dated 07.09.2016 provided that a difference
of at least 3%, the rate of annual increment, in the 6th CPC
pay structure was essential for counting of two stages. The
6th CPC had replaced the system of equidistant pay stages in
a pay scale based on equal annual increments in the 5th CPC
regime by a system of annual increment of 3% on the sum of
pay in the running pay band and the Grade Pay which was to be
added to the running pay as increment. Therefore, the pay
stages in any given Grade Pay were specific to an employee
and depended upon the initial fixation of pay in that Grade
Pay. As a result, the amount of increment earned in the same
Grade Pay would differ in the same Pay Scale/ Grade Pay not
only between different employees but also across years for
the same employee. To illustrate, an employee whose pay was
fixed at Rs 46,100 in GP of 8700 in PB-4 would have the first
annual increment of Rs 1390 which would be added to his
running pay in the Pay Band, another employee whose pay
initially was fixed at Rs 46,400 in the same Grade Pay would
have the first annual increment of Rs 1400. In such a
scenario where the pay stages are specific to the employee,
it is not possible to arrive at universal pay stages for the
purpose of determining the extent of bunching. Therefore, for
the purpose of determining the extent of bunching in a system
of running pay bands, the consecutive pay stages that need to
be considered are the pay stages which are specific to the
employee.
6. In the 5th CPC structure, the maximum and the minimum of
every pay scale were well defined. In the 6th CPC structure,
Entry Pay was separately notified for most Grade Pay levels
to govern the entry pay of direct recruits in that level. The
pay of those moving from a lower grade to a higher one on
promotion was regulated in terms of provisions contained in
Rule 13 of CCS (RP) Rules, 2008. As such, the Entry Pay
notified for a given Pay Scale/ Grade Pay is the effective
minimum of that Grade Pay for direct recruits. For an
employee getting promoted, the sum of the minimum of the
relevant Pay Band and the Grade Pay is the effective minimum
pay. The 7th CPC, in its Report, has commented that this led
to many situations where direct recruits drew higher pay as
compared to personnel who reached that stage through
promotion. Demands were received by the 7th CPC from many
staff associations and employees for removal of this
disparity which the 7th CPC refers to as differential entry
pay.
7. In the revised dispensation for pay fixation in the New
Pay Structure as recommended by the 7th CPC, direct recruits
shall start at the minimum pay corresponding to the level to
which recruitment is made, which will be the first cell of
each level. For those promoted from the previous level, the
fixation of pay in the new level will depend on the pay they
were already drawing in the previous level. The pay, however,
cannot be less than the first stage of the relevant level.
While enumerating the benefits of migrating to the new system
at para 5.1.47 of the 7th CPC Report, it has been stated that
‘the issue of differential entry pay has been resolved’. At
para 5.1.36 of the 7th CPC Report it has also been mentioned
that rationalization has been done with utmost care to ensure
minimum bunching at most levels. Rationalization has been
done by the 7th CPC through the Index of Rationalisation
(IoR) which has been multiplied with the Entry Pay in the 6th
CPC regime to arrive at the first cell of each level. With
the Entry Pay along with IOR being used as the determiner of
the first cell, pay stages below the Entry Pay have been
consciously brought up to the level of Entry Pay and its
corresponding pay stage in the revised pay structure. As a
result, all pay stages below the Entry Pay in any Level will,
on re-fixation, converge to the first pay stage in that
level. As this convergence takes place on account of a
conscious decision of the 7th CPC intrinsic to the
architecture of the Pay Matrix by indicating the Entry Pay as
the starting point of each Level, benefit on account of
bunching cannot be extended with reference to pay stages
lower than the Entry Pay indicated by the 7th CPC for that
level in the Pay Matrix. Extending the benefit of bunching
with reference to pay stages below the entry pay will
perpetuate the difference in pay on account of differential
Entry Pay which was addressed by the 7th CPC.
8. Based on the above, it is clarified that the following
shall be kept in view while determining the extent of
bunching as also the benefits to be extended on account of
bunching at the time of initial fixation of pay in the 7th
CPC pay structure:
(i) Benefit on account of bunching is to be extended when two
or more stages get bunched.
(ii) Benefit of one increment is to be extended on account of
bunching of every two consecutive stages.
(iii) As stipulated in MoF OM dated 07.09.2016, a difference
of 3% to be reckoned for determination of consecutive pay
stages, specific to each employee.
(iv) All pay stages lower than the Entry Pay in the 6th CPC
pay structure as indicated in the Pay Matrix contained in the
7th CPC Report are not to be taken into account for
determining the extent of bunching.
9. All Ministries/ Departments are advised to review all
cases wherein benefit on account of bunching has been
extended in terms of this Department's OM dated 07.09.2016
and to re-fix the pay in terms of the instructions contained
herein.
sd/-
(V.K Singh)
Director
Source:
DoE.gov.in
