Easy steps to Calculate your Basic Pension in 7th Pay Commission-Gservants

Easy steps to Calculate your Basic Pension in 7th Pay Commission-Gservants

We here illustrate the method through easy 5 Steps to calculate your Basic Pension in  7th CPC  Recommendation

Easy steps to Calculate your Basic Pension in 7th Pay Commission

There are Two options have been given to Pensioners

First They have to calculate the Two options and whichever is benefit for them They can select higher amount as their Pension

Option No.1 .  The existing Pension may be multiplied by 2.57

Option No.2 . The Pay Scale  on their retirement and Number of increments they earned  to be taken for calculation

In that Case they should know their Pay Scale and Basic Pay drawn on the date of their Retirement and number increments they earned

By referring the Corresponding Pay scale in successive Pay Commission, they should identify their Sixth pay commission Pay band. If they Know their corresponding Pay Band in sixth Pay commission then it will be easy for them to arrive their Basic Pension to be fixed in VII pay commission.

After calculating the Basic Pension from the above two options, they can choose whichever is beneficial for them

Calculation for arriving your 7th CPC Basic Pension is described below through 5 Easy Steps

 Assume You retired at last pay drawn of ₹4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of ₹3000-100-3500-125-4500:

              Your Basic Pension as revised in VI CPC = 12,543

Calculation Option –I

Step-I

Multiply Your Basic Pension with 2.57

                    Basic Pension (VI CPC)   x   2.57

= 12543 x 2.57 = 32235.70 ( Paisa to be rounded off rupee)

Your basic Pension As per VII CPC = Rs.32236

Calculation Option-II

 Step-II

–    Identify your corresponding Pay Level in Pay Matrix

–    For that you should know your Pay Band in VI pay commission

[The Pay scale details will be informed you by Concerned Pension Paying Authorities when ever your basic Pension was revised as per the successive Pay commission Recommendation ]

for example for this pay scale of ₹3000-100-3500-125-4500,  the corresponding  Pay Scale  and   pay band for Fifth and Sixth CPC respectively is given below

[Visit : To see the III, IV , V CPC Pay Scale ]

In IV Pay Commission Your Pay Scale is 3000-100-3500-125-4500

In V pay Commission Your Pay scale is 10000-325-15200

In Sixth Pay Commission Your Pay Band is 15600-39100 – Grade Pay is 6000

         In Seventh Pay commission your Pay Matrix Level is 11

Step –III

Minimum Pay at this level -11 is Rs. 67700

Total increment earned on your initial pay on the date of Retirement is 9

So Count nine cells from the cell assigned as Minimum Pay in that Level 11

your index number in that Particular Pay matrix Level 11 = 10

The figure in Level 11 and Index 10 = 88400

             50% of this Pay will be fixed as your Basic Pension

Hence your Basic Pension will be fixed at Rs.44200/-

Step- IV

Choose whichever is higher to fix your Basic Pension

Basic Pension in Option -1 = 32236

Basic Pension in Option -2 = 44200

You can select option 2 as the fixation for Basic Pension in 7th Pay commission

Your basic Pension in 7th Pay commission = 44200/-

Note : 1.

Those who are retired in Sixth Pay commission regime would be aware of their increment and Pay Band details. It will be easy for them to calculate their Basic pension in VII Pay Commission using this matrix.

For other it will be very difficult to find out their Pay scale and quantum of increment details as of now. Also It will take little time for Concerned Department to verify the Pensioners record to ascertain the number of increments earned in the retiring level

Note –II

So 7th pay commission recommended that in the first instance the revised pension may be calculated using Calculation Option -I and the same may be paid as an interim measure

[Your Present Basic Pension to be Multiplied by 2.57 = Rs .32236 ]

So Rs.32236 will be paid as Basic Pension as Interim Measure

After Checking the records of concerned individuals As per calculation Option –II

Then Rs.44200 will pe Paid as your Basic Pension

Subsequently the difference of higher amount also will be Paid as Arrears

Calculation for Annual Increment in 7th Pay Commission

7th Pay Commission recommends 3% of the basic Pay for Annual Increment

Annual Increment in Seventh Pay commission remains same. 3% of Basic Pay has been recommended as Annual Increment. But calculation of Annual Increment differs in a way that Pay matrix has been evolved.

In the pre revised Pay, the exact 3 % of the Pay band + Grade Pay would be added in the Pay band on account of Annual Increment on 1st July of every year.

But here in 7th pay commission there is a possibility to get little more or Less than the three percent of Basic Pay. Because here our Basic Pay has to be moved one stage higher in the same Level. In Pay Matrix, each cell in that particular level is calculated such a way that it is 3% higher than the next cell. Since the figure rounded off to nearest hundred, exact three percent increase cannot be expected.

7th Pay Commission gave an Illustrative Example in Respect of Granting Annual Increment.

Suppose, Ms. ABC, who, after having been fixed in the Pay Matrix, is drawing a Basic Pay of Rs.32,300 in Level 4.

When she gets an annual increment on 1st of July, she will just move one stage down in the same Level.

Hence, after increment, her pay will be Rs.33,300.

Trade unions furious over 7th Pay Commission report recommendations: Top 10 reasons why

While the 7th Pay Commission report recommendations have been a source of joy for hundreds of thousands of government employees, for the national trade unions linked to the Bharatiya Janata Party (BJP) and the Left, the hike has not been high enough and they have not kept quiet about it.

Trade unions have protested vehemently against the 7th Pay Commission and are looking for redressal of their grievances and contemplating action. They have also looked at strong industrial action to indicate their unhappiness and will be indicating soon what their future course of action can be. Here are the top 10 reasons why, they say, they are angry with the Seventh Pay panel report:

1. Proposed 7th Pay Commission hike is lowest in many decades and not in sync with inflation - least hike (proposed) in the last 30 years. Considering the inflation, it is unsatisfactory.

2. 7th Pay Commission has recommended a 16 per cent hike in net pay against projected 23.55 per cent.

3. There is a huge gap in maximum and minimum pay in the 7th Pay Commission report recommendations.

4. The gratuity ceiling recommended by 7th Pay Commission has been raised from Rs 10 lakh to Rs 20 lakh, the benefit of this will go to senior officials only.

5. 7th Pay Commission report has ignored sharp increase in prices justifying substantial upward revision in HRA and other allowances. Instead the commission has reduced rates of HRA from 30 per cent to 24 per cent of the basic pay in A Class cities and corresponding decrease in other cities which is a retrograde recommendation.

6. Doubts about the way the 7th Pay Commission has calculated the figures. For example, they calculated House Rent Allowance (HRA) at 3 per cent against the mandated 7 per cent.

7. As per commodity prices on Agriculture Ministry's website and on the basis of Labour Bureau data, the Basic Pay comes at Rs 11,341 while 7th Pay Commission calculation shows it at Rs 9,218. There is a lot of gap.

8. There is no clarity in the 7th Pay Commission report on the pay revision for lakhs of contract workers in government ministries as well as 3 lakh Grameen Dak Sewaks.

9. 7th Pay Commission is the only commission, which has reduced the allowances and due to which the growth in net income is only 14.28 per cent. (PTI).

10. 7th Pay Commission report is totally disappointing and beats logic. Employees and workers will meet on November 27 to protest against the recommendations of the 7th Pay Commission and discuss the issue.

NOTE: The 900-page report of the 7th Pay Commission headed by Justice A K Mathur was presented to Finance Minister Arun Jaitley with a recommendation that the new scales be implemented from January 1, 2016. The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

E-commerce, core banking in focus, says PMG

The Department of Posts is focused on giving a fillip to e-commerce and core banking solutions, aggressive promotion of mobile money orders, postal life insurance and savings bank accounts, delivery of speed post letters within one day of booking and cent per cent delivery of articles by introducing dedicated mail delivery vehicles and mail routes, said Sanjiv Ranjan, Postmaster General of Kurnool region.

All the maturity and death claims under postal life insurance (PLI) and rural postal life insurance (RPLI) have been settled and there is zero pendency of claims in the Kurnool region, the enterprising Indian Postal Service Officer, who assumed charge as Kurnool PMG a fortnight ago, told The Hindu.

Realtime data upload McCamish system has been introduced to upload all ledgers and claims under PLI and RPLI on a realtime basis to the central server as all the 811 post offices across the country are networked, Mr. Ranjan said. Partial digitisation has been happening manually since 2007 and 549 post offices and 4,000 sub post offices in the country have migrated to McCamish system so far. The remaining would migrate to the system by March next year, he said.

Speed post and articles booked are routed through the Kurnool and Tirupati sorting hubs and the current 90 per cent delivery rate would be improved to 95 per cent by January 2016, the Postmaster General said. Attributing the gap in delivery to refusal of the addressees to accept legal notices and absence of working couples during delivery time, he said an alternative mail arrangement would be evolved by December 15.

Mail delivery vehicles

To speed up delivery of speed post letters and articles, affected by over-dependence on public transport system, the Postal Department has chalked out mail routes and plans to hire point-to-point mail delivery vehicles to reach even far flung areas to ensure delivery within a day of booking, Mr. Ranjan said.