7th CPC Pay Fixation on Bunching - Clarification Orders issued by Finmin
Bunching of stages of pay in the pre-7th
CPC pay scales consequent upon fixation of pay in the revised pay
scales based on 7th CPC Regarding
No.1-6/2016-IC/E-IIIA
Govt. of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated the 07th February, 2019
OFFICE MEMORANDUM
Subject: Bunching of stages
of pay in the pre-7th CPC pay scales consequent upon fixation of pay in
the revised pay scales based on 7th CPC Regarding
The undersigned is directed to
invite attention to this Departments OM No. 1-6/2016-IC dated 3rd
August, 2017, explaining in detail the methodology for applying the
principle of “bunching” consequent upon pay fixation in the revised pay
scales (applicable Levels of the Pay Matrix) effective from 1.1.2016
based on implementation of the recommendations of the 7th Pay
Commission.
2. Notwithstanding the fact that the
said OM dated 3.8.2017 has elaborately explained the issue of bunching
in the context of the revised pay scales based on 7th Central Pay
Commission, references are being received in this Ministry seeking
clarification as to the methodology to carry out the principle of
bunching. It is seen that some of the clarifications received seem to
arise out of the position on bunching as obtaining during the pay
structure in vogue based on 6th Pay Commission before 1.1.2016 vis-a-vis
the position explained in terms of this Ministry’s aforesaid OM dt.
3.8.2017 in the context of pay structure currently in vogue from
1.1.2016 based on the recommendations of the 7th Pay Commission.
3. Therefore, the matter has been
considered keeping in view the clarifications sought and the issue is
clarified heretofore. At the very outset, bunching as a sequel to pay
fixation based on the formula for such pay fixation on the date of
effect of revised pay scales based on the recommendations of the 7th Pay
Commission, is to be considered strictly as per the recommendations of
the 7th Pay Commission, as illustrated in para 5.1.37 of its report. The
principle of bunching as recommended by the 7th Pay Commission, as
accepted by the Government in terms of the erstwhile Implementation
Cell’s OM dt. 7.9.2016 and 3.8.2017, is different from the principle
recommended by the 6th Pay Commission and as accepted by the Government
based thereon. Therefore,the principle of bunching in the revised pay
structure based on the recommendations of the 7th Pay Commission is
independent of the principle followed earlier and has no link thereto.
4. The 6th Central Pay Commission in
para 2.2.21 of its Report recommended - “To alleviate the problem of
bunching in these cases,the Commission has allowed the benefit of one
extro increment wherever two or stages in any of the pre-revised pay
scales were getting bunched together at one level in the revised pay
bands…. The Commission has prepared a detailed fixation chart which
gives the fitment in the revised running pay bands in every stage”.
However . in the fitment charts prepared by the 6th Pay Commission, the
Commission illustrated the bunching meant by it. The examples from the
fitment tables prepared by the 6th Pay Commission are given in Annexure I
5. The same principle of bunching
was adopted in terms of the fitment table prescribed by the Ministry of
Finance, Department of Expenditure, as per the OM No.1-1/2008-IC dated
30.8.2008. The examples of which are given in Annexure II.
6. The 7th Pay Commission has dealt with the issue of bunching in paras 5.1.36 and 5.1.37, which are reproduced below.
“5.1.36 Although the rationalisation
has been done with utmost care to ensure minimum bunching at most
levels, however if situation does arise whenever more than two stages
are bunched together ,one additional increment equal to 3 percent may be
given for every two stages bunched, and pay fixed in the subsequent
cell in the pay matrix.
5.1.37 For instance , if two persons
drawing pay of Rs. 53 ,000 and Rs. 54,590 in the GP 10000 are to be
fitted in the new pay matrix , the person drawing pay of Rs. 53.000 on
multiplication by a factor of 2.57 will expect a pay corresponding to
Rs. 1,36,210 and the person drawing pay of Rs. 54,590 on multiplication
by a factor of 2.57 will expect a pay corresponding to Rs. 1,40 .296 .
Revised pay of both should ideally be fixed in the first cell of level
15 in the pay of Rs.1.44,200 but to avoid bunching the person drawing
pay of Rs. 54.590 will get fixed in second cell of level 15 in the pay
of Rs.1.48,500.”
7. Accordingly, the essence of the
recommendations of the 7th Pay Commission is contained in the above
illustration given by the 7th Pay Commission. As per this illustration,
the pay of Rs. 53,000 and Rs. 54,590 were the pay applicable in PB-4
plus Grade Pay of Rs. 10.000 as applicable prior to 1.1.2016, which
corresponds to Level-14 of the Pay Matrix applicable from 1.1.2016. The
pay of Rs. 54,590 was 3% more than the pay of Rs. 53,000. That is, these
two Pays were separated by a difference of 3% of Rs. 53 ,000. Thus, the
pay of Rs. 54,590 was the stage next to the pay of Rs. 53 ,000.
Considering that the 7th Pay Commission allowed the benefit of bunching
at the level of the pay of Rs. 54,590 itself , it materially departed
from the principle followed at the time of 6th Pay Commission because in
the 6th Pay Commission regime the benefit was allowed at the 3rd
consecutive stage and not at the 2nd stage itself (next stage) for the
purpose of bunching.
8. Furthermore. in the illustration
given in para 5.1.37 of its report, the 7th Pay Commission has not
mentioned about the pay in respect of pre-revised pay of Rs. 56,230 ,
which is 3% more than the pay of Rs. 54,590. The revised pay fixed in
the Level 14 with reference to the pre-revised pay of Rs. 56 ,230 will
be Rs. 1.48,500. This will be the same as the pay to be given with
reference to the pre-revised pay of Rs. 54,590 after allowing bunching.
However , the 7th Pay Commission did not recommend any additional
benefit in such cases, as it did not include in its illustration for any
benefit in case of the further stages of pre-revised pay, consequent
upon bunching at the lower stage.
9. In view of the above, the benefit
of bunching consequent upon fixation of pay in the revised pay
structure effective from 1.1.2016 based on the recommendation of the 7th
Pay Commission is to be considered in the light of the above and the
clarifications already issued in terms of the aforesaid letter dated
3.8.2017. Accordingly:
(i) Where consequent upon fixation
of pay in terms of Rule 7 (1) (A)(i) of the CCS (RP) Rules, 2016, two
different pay drawn in the pay structure obtaining immediately before
1.1.2016, which were separated by one another by 3% of the previous
stage, are fixed at the same cell of the applicable Level of the Pay
Matrix effective from 1.1.2016, then the benefit of bunching by way of
one additional increment as on 1.1.2016 shall be admissible in respect
of the pay which is more than 3% of the previous pay, as per the
illustration given by the 7th Pay Commission in para 5.1.37, as
mentioned above. This is further illustrated as below:
6th CPC Pay scale : PB-4 (37.400-67,000)
+ Grade Pay Rs.8,700/-
|
7th CPC Pay Scale – Level-13
(1,23,100-2,15,900)
|
6th CPC Pay Structure (PB-4 and GP of Rs. 8,700)
|
Pay fixation in 7th CPC Pay Matrix (Level – 13)
|
Pay
|
Consolidation based on 2.57 multiple
|
Pay fixed as on 1.1.2016
|
Pay after bunching
|
46 ,100
|
Rs.1,18,477
|
Rs.1,23,100/-
|
Rs.1,23 ,100/-
|
47,490
(46 ,100+3%)
|
Rs.1,22,049
|
Rs.1,23,100/-
|
Rs.1,26,800/-
|
(ii) In view of the position explained in para 8 above and the specific
recommendation of the 7th Pay Commission as per its illustration given
in para 5.1.37 of its report, no further action is to be taken after the
benefit of bunching as a result of application of Rule 7(1)(A)(i), as
indicated above. This is as illustrated below:
6th CPC Pay Structure (PB-4 and GP of Rs. 8,700)
|
Pay fixation in 7th CPC Pay Matrix (Level – 13)
|
Pay
|
Consolidation based on 2.57 multiple
|
Pay fixed as on 1.1.2016
|
Pay after bunching
|
Remarks
|
46 ,100
|
Rs.1,18,477
|
Rs.1,23,100/-
|
Rs.1,23,100/-
|
|
47,490
(46 ,100+3%)
|
Rs.1,22,049
|
Rs.1,23,100/-
|
Rs.1,26,800/-
|
Pay raised because of bunching
|
48,920
(47,490+3%)
|
Rs. 1,25,724
|
Rs.1,26,800
|
Rs.1,26,800
|
No change
|
10. In the light of the above, the points of clarification as referred to this Ministry are explained in the Annexure III.
11. These orders are issued after
consultation with the Comptroller and Auditor General of India in their
application to the employees belonging to the Indian Audit and Accounts
Department.
12. Hindi version of these orders is attached.
sd/-
(Amar Nath Singh)
Director