Fitment and Pay Fixation by 7th CPC


5.1.27 The starting point for the first level of the matrix has been set at 18,000. This corresponds to the starting pay of 7,000, which is the beginning of PB-1 viz., 5,200 + GP 1800, which prevailed on 01.01.2006, the date of implementation of the VI CPC recommendations. Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent.

Pay Fixation in the New Pay Structure

5.1.28 The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57. The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay. If the identical figure is
not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. A couple of examples are detailed below to make the process amply clear. 5.1.29 The pay in the new pay matrix is to be fixed in the following manner:

Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’.
Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.
Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level.

Example I
i. For example an employee H is presently drawing Basic Pay of 55,040 (Pay in the Pay Band 46340 + Grade Pay 8700 = 55040). After multiplying 55,040 with 2.57, a figure of 1,41,452.80 is arrived at. This is rounded off to 1,41,453.
ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.
iii. In the column for level 13, the figure closest to 1,41,453 is 1,41,600.
iv. Hence the pay of employee H will be fixed at 1,41,600 in level 13 in the new pay matrix as shown below:

Table 6: Pay Fixation
GP 8700     GP 8900     GP 10000
Level 13     Level 13A Level 14
118500       131100       144200
122100       135000       148500
125800       139100       153000
129600       143300       157600
133500       147600       162300
137500       152000       167200
141600       156600       172200
145800       161300       177400
150200       166100       182700

5.1.30 As part of its recommendations if Commission has recommended any upgradation or downgrade in the level of a particular post, the person would be placed in the level corresponding to the newly recommended grade pay.

Example II
i. Take the case of an employee T in GP 4200, drawing pay of 20,000 in PB-2. The Basic Pay is 24,200 (20,000+4200). If there was to be no change in T’s level the pay fixation would have been as explained in Example I above. After multiplying by 2.57, the amount fetched viz., 62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at 62,200.
ii. However, assuming that the Commission has recommended that the post occupied by T should be placed one level higher in GP 4600. T’s basic pay would then be 24,600 (20000 + 4600). Multiplying this by 2.57 would fetch 63,222.

iii. This value would have to be located in the matrix in Level 7 (the upgraded level of T). iv. In the column for Level 7 63,222 lies between 62200 and 64100. Accordingly, the pay of T will be fixed in Level 7 at 64,100.
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