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You are here: Home / How the multiplication factor was arrived at 2.86? – 7th CPC Pay in the Pay Band

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How the multiplication factor was arrived at 2.86? – 7th CPC Pay in the Pay Band

7TH PAY COMMISSION PAY IN THE PAY BAND
HOW THE MULTIPLICATION FACTOR WAS ARRIVED AT 2.86?

Why it was increased by 2.86 times?

The 6th Central Pay Commission, in its recommendations, introduced the concept of Multiplication Factor. The Multiplication Factor was fixed at 1.74 in the recommendations of 6th CPC. The Commission had also explained how the number was arrived at.

But the Central Government chose to change it to 1.86. One of the reasons for this modification was the intense pressure from various Federations of Central Government Employees.

7th CPC Pay & Allowances Calculator July 2017

First we should know about the fixation of 1.74

Basic Pay on 1.1.2006 = ‘1’

50% DA Merger = ‘0.5’

Dearness Allowance (24%) = ‘0.24’

Total = ‘1.74’ (1 + 0.5 + 0.24)

And what basis the Central Government changed as 1.86?

Let us assume the Basic Pay, as of 01.01.2006, as 100%. Let’s take the Dearness pay (post the 50% DA Merger) as 50%.
If you add Basic Pay and Dearness Pay and calculate 24% of it, then you’d get 36%. (100 + 50 = 150 / 24 x 100 = 36)
100% + 50% + 36% = 186%
This number is being taken for calculations as 1.86.

We have also adopted the same method here including the weightage of Dearness Allowance is providing on Transport Allowance…

Basic Pay = 1.0

DA on 1.1.2016 (125% – Including July 2015 & Jan 2016)

For 100% = 1.0

For 25% (1.0 + 1.0 = 2.5 x 20%) = 0.5

Transport Allowance Weightage (DA 125%) = 0.36 (Approximately)

Total = 1.0 + 1.0 + 0.5 + 0.46 = 2.86


7th CPC Pay & Allowances Calculator July 2017

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Comments

  1. xyz says

    November 4, 2016 at 11:44 am

    First we should know about the fixation of 1.74
    Basic Pay on 1.1.2006 = ‘1’
    50% DA Merger = ‘0.5’
    Dearness Allowance (24%) = ‘0.24’
    Total = ‘1.74’ (1 + 0.5 + 0.24)

    And what basis the Central Government changed as 1.86?
    Let us assume the Basic Pay, as of 01.01.2006, as 100%. Let’s take the Dearness pay (post the 50% DA Merger) as 50%.
    If you add Basic Pay and Dearness Pay and calculate 24% of it, then you’d get 36%. (100 + 50 = 150 / 24 x 100 = 36)
    100% + 50% + 36% = 186%
    This number is being taken for calculations as 1.86.

    We have also adopted the same method here including the weightage of Dearness Allowance is providing on Transport Allowance…

    Basic Pay = 1.0

    DA on 1.1.2016 (125% – Including July 2015 & Jan 2016)

    : For 100% = 1.0

    : For 25% (1.0 + 1.0 = 2.5 x 20%) = 0.5

    Transport Allowance Weightage (DA 125%) = 0.36 (Approximately)

    Total = 1.0 + 1.0 + 0.5 + 0.46 = 2.86

    Calculation for tpt is wrong total will come 2.96 instead of 2.86. please re-examine

    Reply
  2. Jayaprakash.V says

    November 2, 2016 at 7:12 pm

    My basic pension was fixed as 8411. from 2009 onwards but as per the latest circular 567/568 pension is reduced to 8330. Is it justifiable ?

    Reply
  3. mathew says

    April 9, 2016 at 11:46 am

    Sir , I want to know that new 6 percent Da relief ( effective from January 2016 ) add in seventh pay comission revised pension from 2016 or not. Eg : on january 1 st 2016 7 th pay revised pension + 6 %. Da

    Reply
  4. Sk Asadul Haque says

    April 2, 2016 at 4:02 pm

    my basic pay is 8130/-GP 2000 please how much expected my salary. .

    Reply
  5. Nb Sub Kulamanai maharana says

    March 31, 2016 at 6:02 pm

    My present basic pay is 12490/- GP – 4200/- how will be in 7th pay commission after revised of recommendations for defence personnel

    Reply
  6. pushpendra chauhan says

    March 31, 2016 at 12:12 pm

    sir my basic pay is 10700 and grade pay is 2800 please how much expected my salary

    Reply
  7. Ajay Kumar Rai says

    March 12, 2016 at 8:01 am

    Ajay Kumar rai says . My basic payment is 6460 and Go is 2000 how will be my grass payment under 7 thcpc…….

    Reply
  8. p s p raju says

    February 22, 2016 at 10:14 pm

    My basic 2745.my total pay 6627.how much expected my salary

    Reply
  9. Prakash v says

    February 18, 2016 at 10:15 am

    Dear Sir/Madam,
    My basis pay is 5420 and Grade pay is 1900….what would be my gross pay under 7th CPC???

    Reply
  10. AMAR says

    February 11, 2016 at 9:51 pm

    MY BASIC PAY IS 18550/- AND GP IS4600/- HOW MUCH WILL BE IN 7TH PAY COMMISSION

    Reply
  11. Bipracharan padhi says

    February 10, 2016 at 3:55 pm

    my pension as on 31Dec 2015 is 9247 +TI 119% what will be my pension under 7th pay commission.

    Reply
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