Guidelines for fixation of pay of candidates working in Public Sector Undertakings etc., recommended for appointment by the Commission by method of recruitment by selection

Guidelines for fixation of pay of candidates working in Public Sector Undertakings etc., recommended for appointment by the Commission by method of recruitment by selection 

F.No.12/3/2017-Estt.(Pay-1)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

North Block, New Delhi.
Dated 28.07.2017

OFFICE MEMORANDUM

Subject:- Guidelines for fixation of pay of candidates working in Public Sector Undertakings etc., recommended for appointment by the Commission by method of recruitment by selection - regarding.

Reference is invited to this Department's O.M.s No.12/1/88-Estt(Pay-I) dated 07.08.1989, OM No.12/1/96-Estt(Pay-I) dated 10.07.1998 and OM No.12/3/2009-Pay-I dated 30.03.2010 whereby guidelines for fixation of pay of candidates working in Public Sector Undertakings etc., on their appointment as direct recruits on selection through a properly constituted authority including departmental authorities, were issued.

2. Subsequent to the implementation of the recommendations of the 7th CPC and issuance of CCS(RP) Rules 2016, the system of running Pay Bands and Grade Pays have been replaced by pay matrix. Accordingly, in partial modification of this Department's OM No.12/1/88- Estt(Pay-I) dated 07.08.1989, O.M. No.12/1/96-Estt(Pay-I) dated 10.07.1998 and O.M. No.12/3/2009-Pay-I dated 30.03.2010 referred to above, the method of pay fixation in respect of those appointed on or after 01.01.2016 will be as under:-

" In case of candidates working in Public Sector Undertakings (PSUs), Universities, Semi-Government Institutions or Autonomous Bodies, who are appointed to a post as direct recruits on or after 01.01.2016 on selection through interview by a properly constituted agency including Departmental Authorities making recruitment directly, their initial basic pay shall be fixed at a stage in the Level of the post so that the pay and Dearness Allowance as admissible in the Government, protects the pay and Dearness Allowance drawn in the PSU etc.. If there is no such stage in the post, the pay shall be fixed at the stage next below that pay. If the maximum pay in the Level applicable to the post in which the person is appointed is less than such pay arrived at, his initial basic pay shall be fixed at such maximum pay of the post. Similarly, if the minimum pay in the Level applicable to the post in which such person is appointed is more than such pay arrived at, his initial basic pay shall be fixed at such minimum pay of the post. The pay fixed under this formulation will not exceed the highest cell value applicable for the Level of the post in the pay matrix, to which he is appointed."

3. The conditions for admissibility of pay protection shall be the same as stipulated in this Department's OMs dated 07.08.1989 and 10.07.1998 referred to above. 4. In so far as persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India. 5. These orders will be applicable w.e.f. 01.01.2016. 6. Hindi version will follow.

(Pushpender Kumar)
Under Secretary to the Government of India
TeI.No.23040 48

Source: DoPT

Comparison of 7th Pay Commission and 6th CPC Pay excluding HRA

Comparison of 7th Pay Commission and 6th CPC Pay excluding HRA

Comparison of 7th Pay Commission and 6th CPC Pay excluding HRA – NFIR provides data that shows that increase in pay by way of revision pay proposed by 7th pay commission from the Level 1 to 6 is marginal and from Level 7 there is no increase


During  discussions  with the Hon’ble  MR and the Board (CRB,  FC,  MS) on 23rd December 2015, the NFIR  General Secretary  has expressed that there is all-round  unhappiness on 7th CPC recommendations as in many cases the ‘Take  Home Pay’  is either very marginal  or less than  what  is  received  by the  employee  now.

The  Federation  also  disputed  the estimated financial  implications  (Rs.28,500 crores)  and said that the estimated  expenditure  has been exaggerated.  It was also brought to the notice of the MR the retrograde recommendations  of 7th CPC,  while the case of Railway employees  of various categories  was not dealt adequately and the Railway  Ministry  has unfortunately  not apprised the inadequacies of Grades Pay and Pay Band of 6th CPC to the Chairman,  7th CPC.

Table–II  indicates  6th  CPC minimum pay in GP+  Pay Band without  HRA.

Table-II  (a)  gives 7th CPC  minimum  pay  without   HRA  (staff  in occupation   of Railway quarters are not entitled for HRA).

[A comparison  of Table-II with Table-II (a) shows minus  ‘Take  Home Pay’   for employees of Level- I  to Level-6 of Pay Matrix and equally  marginal  increase to those  in Level-7,  8 & 9 of Pay Matrix. Again  in Level- 10 the ‘Take  Home  Pay’  will be less than the present amount. Overall position  will be either “minus” or “marginal increase”.  The Income Tax deduction would further worsen.]

TABLE- II          VI th CPC pay at the minimum of the Pay bands without HRA as on 01/01/2016
Pay Band		GP	PAY	DA	HRA	TR/ALL	GROSS	PF	PTAX	CGIS	DED	NET
PB-I	5200-20200	1800	7000	8750	0	1350	17100	840	150	30	1020	16080
PB-I	5200-20200	1900	7730	9663	0	1350	20643	928	200	30	1158	19485
PB-1	5200-20200	2000	8460	10575	0	3600	24635	1015	200	30	1245	23390
PB-I	5200-20200	2400	9910	12388	0	3600	28298	1189	200	30	1419	26878
PB-I	5200-20200	2800	11360	14200	0	3600	31960	1363	200	30	1593	30367
PB-11	9300-34800	4200	13500	16875	0	3600	33975	1620	,200	30	1850	32125
PB-Il	9300-34800	.   4600	17140	21425	0	3600	42165	2057	200	30	2287	39878
PB-Il	9300-34800	4800	18150	22688	0	3600	44438	2178	200	60	2438	42000
PB-Il	9300-34800	5400	20280	25350	0	7200	52830	2434	200	60	2694	50136
PB-Ill	15600-39100	5400	21000	26250	0	7200	54450	2520	200	120	2840	51610
PB-I11	15600-39100	6600	25350	31688	0	7200	64238	3042	200	120	3362	60876
PB-111	15600-39100	7600	29500	36875	0	7200	73575	3540	200	120	3860	69715

TABLE-II (a)  VII th CPC pay at the minimum of the level without HRA as on 01/01/2016
LEVEL	PAY	DA	HRA	TR/ALL	GROSS	PF	PTAX	CGIS	DED	NET	GROSS DIFF	NET DIFF
1	18000	0	0	1350	19350	2160	200	1500	3860	15490	2250	-590
2	19900	0	0	1350	21250	2388	200	1500	4088	17162	608	-2323
3	21700	0	0	3600	25300	2604	200	1500	4304	20996	665	-2394
4	25500	0	0	3600	29100	3060	200	1500	4760	24340	803	-2538
5	29200	0	0	3600	32800	3504	200	1500	5204	27596	840	-2771
6	35400	0	0	3600	39000	4248	200	2500	6948	32052	5025	-73
7	44900	0	0	3600	48500	5388	200	2500	8088	40412	6335	534
8	47600	0	0	3600	51200	5712	200	2500	8412	42788	6763	789
9	53100	0	0	7200	60300	6372	200	2500	9072	51228	7470	1092
10	56100	0	0	7200	63300	6732	200	5000	11932	51368	8850	-242
11	67700 –	0	0	7200	74900	8124	200	5000	13324	61576	10663	700
12	78800	0	0	7200	–86000	9456	200	5000	14656	71344	12425	1629

Source: NFIR

NFIR compares 7th pay commission pay matrix and 6th pay commission pay

NFIR compares 7th pay commission pay matrix and 6th pay commission pay

NFIR compares 7th pay commission pay matrix and 6th pay commission pay including HRA – NFIR concludes that net benefit is marginal at Level-1, and minus  at Level–2. When taking income tax deduction in to account pay increase at higher levels will also be minimal


During  discussions  with the Hon’ble  MR and the Board (CRB,  FC,  MS) on 23rd December 2015, the NFIR  General Secretary  has expressed that there is all-round  unhappiness on 7th CPC recommendations as in many cases the ‘Take  Home Pay’  is either very marginal  or less than  what  is  received  by the  employee  now.

The  Federation  also  disputed  the estimated financial  implications  (Rs.28,500 crores)  and said that the estimated  expenditure  has been exaggerated.  It was also brought to the notice of the MR the retrograde recommendations  of 7th CPC,  while the case of Railway employees  of various categories  was not dealt adequately and the Railway  Ministry  has unfortunately  not apprised the inadequacies of Grades Pay and Pay Band of 6th CPC to the Chairman,  7th CPC.

As  desired  vide  note  dated  23/12/2015,  the  Federation   furnishes  the  following  details  as Annexures to this letter.

(a) Table –I   gives   the  position   of  6th   CPC   minimum   pay   in  Pay  Band   &  Grade   Pay (PB-I   to PB-3) as on 01/01/2016.

(b) Table-I  (a) explains  the 7th CPC minimum pay from Level-1 to Level-12  of the Pay Matrix . A comparison  of Table-I  with Table-I (a)  reveals that the net benefit is marginal at Level-1, minus  at Level–2.

However,  there  may be substantial  increase   from Level- 7  and above.  If Income Tax deduction  takes place, the increase will fall.

6th And 7th Cpc Pay Comparison Table

TABLE-1                VI th CPC pay at the minimum of the Pay bands as on 01/01/2016
Pay Band		GP	PAY	DA	HRA	TR/ALL	GROSS	PF	PTAX	CGIS	DED	NET
PB-I	5200-20200	1800	7000	8750	2100	1350	19200	840	150	30	1020	18180
PB-I	5200-20200	1900	7730	9663	2319	1350	21062	928	200	30	1158	19904
PB-I	5200-20200	2000	8460	10575	2538	3600	25173	1015	200	30	1245	23928
PB-1	5200-20200	2400	9910	12388	2973	3600	28871	1189	200	30	1419	27451
PB-I	5200-20200	2800	11360	14200	3408	3600	32568	1363	200	30	1593	30975
PB-II	9300-34800	4200	13500	16875	4050	3600	38025	1620	200	30	1850	36175
PB-II	9300-34800	4600	17140	21425	5142	3600	47307	2057	200	30	2287	45020
PB-II	9300-34800	4800	18150	22688	5445	3600	49883	2178	200	60	2438	47445
PB-II	9300-34800	5400	20280	25350	6084	7200	58914	2434	200	60	2694	56220
PB-III	15600-39100	5400	21000	26250	6300	7200	60750	2520	200	120	2840	57910
PB-III	15600-39100	6600	25350	31688	7605	7200	71843	3042	200	120	3362	68481
PB-III	15600-39100	7600	29500	36875	8850	7200	82425	3540	200	120	3860	78565

TABLE-				(a)VII th CPC pay at the minimum of the Pay Matrix level as on 01/01/2016
LEVEL I	PAY	DA	HRA	TR/ALL	GROSS	PF	PTAX	CGIS	DED	NET	GROSS DIFF	NET DIFF
1	18000	0	4320	1350	23670	2160	200	1500	3860	19810	4470	1630
2	19900	0	4776	1350	26026	2388	200	1500	4088	21938	2715	-216
3	21700	0	5208	3600	30508	2604	200	1500	4304	26204	5335	2276
4	25500	0	6120	3600	35220	3060	200	1500	4760	30460	6350	3009
5	29200	0	7008	3600	39808	3504	200	1500	5204	34604	7240	3629
6	35400	0	8496	3600	47496	4248	200	2500	6948	40548	9471	4373
7	44900	0	10776	3600	59276 …	5388	200	2500	8088	51188	11969	6168
8	47600	0	11424	3600	62624	5712	200	2500	8412	54212	12742	6768
9	53100	0	12744	7200	73044	6372	200	2500	9072	63972	14130	7752
10	56100	0	13464	7200	76764	6732	200	5000	11932	64832	16014	6922
11	67700	0	16248	7200	91148	8124	200	5000	13324	77824	19306	9344
12	78800	0	18912	7200	104912	9456	200	5000	14656	90256	22487	11691

Source: NFIR