7th CPC Bunching Calculation
Detailed Clarification Order issued by DoE on 3.8.2017
“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 5.1.37 of the 7th CPC Report.”
Recommendations of the Central Pay Commission (CPC) — bunching of stages in the revised pay structure under Central Civil Services (Revised Pay) Rules, 2016
No.1-6/2016-IC
Government of India
Ministry of Finance
Department of Expenditure
Implementation Cell, 7th CPC
North Block, New Delhi,
3rd August, 2017
OFFICE MEMORANDUM
Subject: Recommendations of the 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 Department’s 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.Bunching of Stages in 7th CPC Pay Fixation
2. The provisions giving effect to the recommendations of the 7th CPC on extending the benefit on account of bunching were notified vide DoE O.M. 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. In terms of the DoE O.M. dated 07.09.2016 based on the 7th CPC recommendations, 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 are 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 pay scales existing in the 5th CPC pay structure were replaced by a system of running pay bands recommended by the 6th 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 standalone 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 5.1.37 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 extent 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 of 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 7th 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 Department’s OM dated 07.09.2016 and to re-fix the pay in terms of the instructions contained herein.
(V.K Singh)
Director
Reference Orders issued by DoPT & Finmin…
Bunching of Stages in the Revised Pay structure under CCS (RP) Rules – DoE Orders on 13.8.2017
Bunching of Stages in the Revised Pay structure under CCS (RP) Rules – DoPT Orders on 25.5.2017
Bunching of Stages in the Revised Pay structure under CCS (RP) Rules – DoE Orders on 7.9.2016
Bunching of Stages in the Revised Pay structure under CCS (RP) Rules – DoPT Orders on 27.2.2017
Still it is not clear from the order that who will be benefited from this order. Kindly illustrate it from examples relating it as basic pay before 6th Pay commission and basic pay after 7th pay commission. This anomaly be seen easily in the grade pay 4600 of the 6th CPC. Employees who worked 5-6 years in this grade and the employees who have promoted at the time of implementation of the 7th pay are getting the same basic pay that is Rs.44,900/-. This anomaly should be sort out in favour of the employees who had almost completed 5-6 years in the grade pay of 4600 of the 6th CPC. The benefit of bunching should be given to such employees.
O.M. Dated 03-08-2017, issued by DoPT on bunching, denying the benefit to all pay stages lower than the entry pay in the 6th CPC pay structure, [Para 8-iv of the O.M] is totally unacceptable and not justified.
5th CPC introduced minimum pay for all grades/posts and the same was granted to promotees as well as direct recruits. There was no differenciation between them in 5th cpc. However, 6th CPC abandoned the concept of minimum pay and created 2 types of pay for employees of same grade. It introduced entry pay for direct recruits, where as the benefit was denied to employees who have qualified the departmental exam and promoted to the same grade with requisite qualification for that post. This has resulted into huge difference in pay amongst the employees of same grade, leading to serious pay anomaly. However, Departments, where provision for direct recruitment existed, stepped up the pay of promotees with direct recruits, where as department where provision for direct recruitment does not exists, did not extend the benefit of stepping up to their promotees.
7th CPC re-introduced minimum pay for each grade/level, stating that, 7th CPC has resolved the issue of differential entry pay. However, it is mentioned that, the above problem could be resolved only after setting right the cases affected by 6th CPC. For example, a UDC who was promoted to the grade of Assistant in 2009, drawing a pay of Rs.9700 + 4600 GP would take 7-8 years to reach the entry pay envisaged for Assistant in 6th CPC ie Rs.17140/- [Rs.12540+4600GP]. Since his pay is lower than the entry pay in 6th CPC, his pay shall be fixed to the minimum pay level of Rs.44900/- under 7th CPC. Where as a UDC promoted as Assistant in 2015 and drawing a pay of Rs.9700+ 4600 GP shall also draw the same minimum pay of Rs.44900/- under 7th CPC. This causes serious pay anomaly among the employees of same grade and the employee who has gained 7 to 8 increments under 6th CPC, looses all his increments/seniority in the grade, for no fault of him, but due to the change in policy.
In view of the above, the conditions stipulated under para-8(iv) of the above O.M. dated 03-08-2017, needs to be reviewed/rectified to set right the pay anomaly created by 6th CPC and to extend necessary bunching benefit to the affected employees.
my BP+GP was 40220+8700=48920. the initial pay of GP 8700 would be 37100+8700=46100
next lvl after one increment would be
38790+8700= 47490
Both multiplied by 2.57 are below 123100 the initial of level 13.
would bunching will be allowed. and what would be my pay considering bunching on 1/1/2016
Sir,
Kindly issue an order clearly clarifying the pay scale and grade pays which are to be bunched for all grade pays
Now the Fin Ministry has clarified that benefit of bunching has to be given at the rate of one increment for every two increments bunched. vide para 8(ii) of the OM dt 3rd Aug,2017 of Implementation Cell. This being the position, this benefit needs to be extended to all fixations of pay from 6th CPC to 7th CPC pay matrix including notional fixation for modified parity in pension for pre-2016 pensioners.As this has not been mentioned in the Concordance Tables published by Govt, this matter has to be taken up with govt for implementation. Pensioners Associations and Confederation of CGE&W may take necessary action. Thanks.