Friday, April 25, 2014

Annual Increment for Central Govt. Employees - Comparison table between 5th & 6th CPC


An overview about Central Government Employees’ Increment

‘Increment’ is definitely one of the most popular words in the Central Government employee’s dictionary. It is a known fact that each year, without fail, increment brings considerable raise in salary for Central Govt. employees.

Until about the 5th CPC, there was no major change in the increment system. But, the 6th CPC brought in landmark reforms in the increment system.

Until then, increments were given in the form of a consolidated amount. The 6th CPC recommended that it be calculated on percentage basis. The Central Government ordered that it be calculated at 3% of the employee’s basic pay with effect from 1.1.2006.

The CG employees didn’t realize how useful this was going to be. They thought it wouldn’t amount for much. It was Rs.75 for Rs. 3050 and revised to Rs. 210 for Rs.7000 with simple calculation.

But that was not the end of the story. It was only after a number of years that they realized the true impact of this reform. Let us explain the benefits with an example:

Let us consider the examples of A, and B, two employees who had joined the Central Government services: In five years of getting recruited, B gets a promotion. A gets a promotion three years after B.

On the basis of the 6th CPC :

6th CPC
A' Employee
B' Employee
1.9.2008
1900
5830
7730
1.9.2008
1900
5830
7730
1.7.2009
1900
6070
7970
1.7.2009
1900
6070
7970
1.7.2010
1900
6310
8210
1.7.2010
1900
6310
8210
1.7.2011
1900
6560
8460
1.7.2011
1900
6560
8460
1.7.2012
1900
6820
8720
1.7.2012
1900
6820
8720
1.7.2013
1900
7090
8990
1.7.2013
2400
7090
9490
1.7.2014
1900
7360
9260
1.7.2013
2400
7380
9780
1.7.2015
1900
7640
9540
1.7.2014
2400
7680
10080
1.7.2016
2400
7930
10330
1.7.2015
2400
7990
10390
1.7.2016
2400
8240
10640
1.7.2016
2400
8310
10710

On the basis of the 5th CPC :

5th CPC
‘B' Employee
‘A' Employee
1.2.2000
3050
1.2.2000
3050
1.2.2001
3125
75
1.2.2001
3125
75
1.2.2002
3200
75
1.2.2002
3200
75
1.2.2003
3275
75
1.2.2003
3275
75
1.2.2004
3350
75
1.2.2004
3350
75
1.2.2005
4000
100
1.2.2005
3425
75
1.2.2006
4100
100
1.2.2006
3500
75
1.2.2007
4200
100
1.2.2007
3575
75
1.2.2008
4300
100
1.2.2008
4000
100

Can you understand the difference now?

In 6th CPC the difference between ‘A’ and ‘B’ will be Rs.70 only, whereas in 5th CPC it will be Rs.300.

The Junior doesn’t have to worry that the senior has a tremendous advantage over him. In the past, the Junior wouldn’t be able to attain the Senior’s basic pay until retirement. 



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