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7th Pay Commission : bunching of stages in the revised pay structure under Central Civil Services (Revised Pay) Rules, 2016

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7th Pay Commission : bunching of stages in the revised pay structure under Central Civil Services (Revised Pay) Rules, 2016. **  No. A-60015/1/2016/MF.CGA(A)/NGE/7th CPC/480 ** Government of India, Ministry of Finance, Department of Expenditure , Controller General of Accounts Mahalelkha Niyantrak Bhawan, E Block, GPO Complex, INA,  New Delhi-110023, Dated: 10th August, 2017** OFFICE MEMORANDUM ** Sub: Recommendations of 7th Central Pay Commission- bunching of stages in the revised pay structure under Central Civil Services (Revised Pay) Rules, 2016.
No. A-60015/1/2016/MF.CGA(A)/NGE/7th CPC/480
Government of India
Ministry of Finance
Department of Expenditure
Controller General of Accounts
Mahalelkha Niyantrak Bhawan
E Block, GPO Complex, INA
New Delhi-110023
Dated: 10th August, 2017
OFFICE MEMORANDUM
Sub: Recommendations of 7th Central Pay Commission- bunching of stages in the revised pay structure under Central Civil Services (Revised Pay) Rules, 2016.
Attention is hereby invited to this Office OM of even number dated 23 rd February, 2017 on the subject cited above vide which the pay details of Shri Babu Balram Jee, AAO, CPWD, lBBZ-l, Malda M/o Urban Development were made available so that benefit of  bunching may be extended to eligible AAOs in adherence to the Department of  Expenditure OM No. 1-6/2016-IC dated 7th September, 2016.  

Further, Implementation Cell, 7th CPC, Department of Expenditure, Ministry of Finance has issued clarifications in this regard vide OM No.1-6/2016-IC dated 3rd August,  2017 (copy enclosed). 

All respective accounting units of Ministries/ Departments concerned are advised to  review all cases wherin benefit on account of bunching has been extended in terms of this  office OM dated 23rd February, 2017 and in adherence to DoE OM No. 1-6/2016-lC dated  7th September, 2016 and to re-fix the pay in terms of Implementation Cell, 7th CPC,  Department of Expenditure, Ministry of Finance OM No.1-6/2016-lC dated 3 rd August,  2017. 

Accordingly, clarifications sought in this regard from various accounting units of  Ministries/Departments concerned may be treated as disposed of.  

This issues with the approval of the competent authority.

Encl: As above.
(S. K. Gupta)
Sr. Accounts Officer
To
1. All Pr. CCAs/CCAs/CAs of the Ministries/ Departments concerned
2. The Dy. Controller General of Accounts (Admn.), O/o CGA, New Delhi.
3. ITD Section is requested to upload the aforesaid OM. on the official website of the CGA.

******


No.1-612016-IC
Government of India
Ministry of Finance
Department of Expenditure
lmplementation Cell, 7th CPC)
North Block. New Delhi.
3rd August, 2017
OFFICE MEMORANDUM
Subject: Recommendations or the 7m 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  Departments 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 ln terms of the DoE O.M dated 07.09.2016 based on the 7th CPC recommendatins, 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 re 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 scales existing in the 5th CPC pay structure were replaced by a system of running pay bands recommended by the 6 th 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 standolone 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 5.137 of the 7th CPC Report. Based on the illustration contained in
para 5 1.37 of the 7th CPC Report. Department of Expenditure's O M 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 exte3nt 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 lof 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 7 th 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 Deparetment’s Om dated 07.09.2016 and to re-fix the pay in terms of the instructions contained herein. 

(V. K. Singh)
Director 

bunching-of-stages

Source : MoF/CGA

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