Tuesday, August 26, 2008

Hi All,
Welcome to my blog.
I found a lot of wrong information across the web regarding Pay commission. All the information being spread have many pieces of wrong information. It seems nobody has studied the report and relevent sections properly, thats why, I started this blog. You all are welcome to comment on.
I posted the comment pasted below on an another blog, which is regarding the fitment benefit, I think it will be useful to understand how pay commission has structured the new paybands and grade pay for each pre-revised scale

Thanks.
Ashwini Kumar


My comment posted somewhere else regarding Fitment benefit and DA rates.-


Hi All,
It seems people have misconception about the fitment benefit... blogger himself seems confused about the same.
In article 1.2.3 CPC describes the Fitment Benefit as under -

Fitment benefit 1.2.3 The efforts of the Commission have been to devise asuitable pay package which will not only provide enoughincentive to retain the brightest officers but also attract the bestto join it in future. The quantum of fitment has been decided,accordingly. At the time of Fifth Central Pay Commission,fitment of 20% of the pre-revised basic pay was recommended.This was subsequently raised by the Government to 40%. TheCommission is recommending a new structure of running paybands and grade pay. In the structure, grade pay has beennormally taken at 40% of the maximum of the pre-revised payscale. Grade pay is, therefore, in the nature of fitment benefit.The pay in the running pay band, as on 1/1/2006, has beencomputed by adding the basic pay and dearness allowance atthe rate of 74% that would have been payable on the existingFifth CPC pay scales w.e.f. 1/1/2006 had merger of dearnessallowance equal to 50% of the basic pay not been allowed from1/4/2004.
At another place again CPC says -Rates of grade pay have been generallycomputed at the rate of forty percent of the maximum of thecorresponding pre-revised pay scale which is rounded off to thenext multiple of hundred.
As per blogger if we are going to get multiplier of 1.86 then The fitment had to be (Basic + DP)*24%.
Which is incorrect as CPC clearly mentioned that fitment benefit is being computed at the rate of 40% of the maximum of thecorresponding pre-revised pay scale which is rounded off to thenext multiple of hundred. So in no case it can be (Basic + DP)*24%.

It seems blogger has not read the important parts of the report.

Another thing which is not clear is regarding DA, CPC clearly mentions in article 4.1.18 as follows -
4.1.18 The corollary to this merger should necessarily have beena revision in the existing reference base of price index of 306.33.The new reference base, therefore, should have been the 12monthly average index when the index increased by 50 percent.The reference base index would have, therefore, been higher than306.33, given the uptrend in price levels, which would translate toa lower DA rate compared to the extant rates. Logically, therefore,conversion of dearness allowance as dearness pay shouldinvariably be accompanied with simultaneous revision of thebase index. This conversion, however, is not necessary in therevised structure being recommended where increments arepayable as a percentage of the pay in the pay band and grade paythereon and provision has been made for all allowances/benefitsto be revised periodically linked to the increase in the priceindex. The Commission is, therefore, not recommending mergerof dearness allowance with basic pay at any stage.

Then I question on what basis the recommended calculators using DA rates, which are to be computed and declared accordingly?

I think everybody is just guessing the things.

So please please please.... don't play with feelings or emotions of the Govt employees and please dont try to create hypes among all of them.

Before writing any thing on such blogs, Please, first, make sure its correct to the extents of the information. Because whatever you are writing is going to be read by millions of people all over the world.

Thanks.
Ashwini Kumar.

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