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Shocking fact of pay ‘hike’ in 7th Pay Commission recommendations!

Cash (2)Do you know that once the 7th pay commission comes into effect from January 1, 2016, some of the government servants will actually take home the lower salary than what they are currently drawing under the 6th pay commission?

The 7th Pay Commission recommended 14.29 per cent hike for the Central government employees. After taking the allowance into account, some reports also pegged the salary hike by 23.5 per cent.

Group C employees, who form 85 per cent of the Central government workforce, are calling the 7th CPC recommendations on their salary a farce. They claim that they would be taking home lesser salary than what they are currently drawing.

What they are saying that assuming that a government servant has been appointed in the Grade Pay of Rs. 1800 on 1st August of 2015 and he has also been allocated government- quarter. His net pay calculated for the month of January 2016 as per the 6th pay commission would be as follows:

Basic Pay Rs. 5200 + Grade Pay Rs. 1800= Rs. 7000
After applying expected DA of 125% as on 31-1-2016 = Rs. 8750

(Since he had been allocated accommodation) HRA = Nil
Travel A = 600 + DA=Rs.1350
Total Gross Pay= Rs. 17100.

Deductions: NPS 10% of basic Pay = Rs 700
Central Government Employees Group Insurance Scheme = Rs 30

Total deductions (700+30) = 730
Net Pay would have been = 17100-730 =16370

However the revised pay as per 7th Pay Commission calculations, as on 31-1-2016 is expected to be Rs. 16050.

He will be drawing Rs.320 lesser in 7th Pay Commission revised pay than under the 6th Pay Commission.

This would be primarily because of increase in deductions like Central Government Employees Group Insurance Scheme and National Pension Scheme.

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