Seeking of Clarification regarding Option and Pay Fixation in 7th CPC : BPMS Part1

Seeking of Clarification regarding Pay Fixation in 7th CPC : BPMS

REF: BPMS/MOD/7th CPC/60(7/3/L)

Dated: 01.10.2016

The Dy Secretary (CP),
Govt of India, Min of Defence,
‘B’ Wing, Sena Bhawan,
New Delhi – 110011


Subject: Seeking of Clarification regarding Option & Pay Fixation in 7th CPC.

Respected Sir,

Part -1

 With due regards, your attention is invited to Para 4.(2) of the Gazette Notification on Resolution (No. 1-2/2016-IC, Dated 25.07.2016) issued by Ministry of Finance (Department of Expenditure) which reads as under:

4. (1) The Pay Matrix, in replacement of the Pay Bands and Grade Pays as in force immediately prior to the notification of this Resolution, shall be as specified in Annexure I in respect of civilian employees.

(2) With regard to fixation of pay of the employee in the new Pay Matrix as on 1st day of January, 2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31st day of December, 2015 shall be multiplied by a factor of 2.57. The figure so arrived at is to be located in the Level corresponding to employee’s Pay Band and Grade Pay or Pay Scale in the new Pay Matrix. If a Cell identical with the figure so arrived at is available in the appropriate Level, that Cell shall be the revised pay; otherwise the next higher cell in that Level shall be the revised pay of the employee.

(3) After fixation of pay in the appropriate Level as specified in sub-paragraph (2) above, the subsequent increments in the Level shall be at the immediate next Cell in the Level.

Whereas the Rule 7 of the CCS (RP) Rules, 2016 reads as under:

7. Fixation of pay in the revised pay structure:

(1) The pay of a Government servant who elects, or is deemed to have elected under rule 6 to be governed by the revised pay structure on and from the 1st day of January, 2016, shall, unless in any case the President by special order otherwise directs, be fixed separately in respect of his substantive pay in the permanent post on which he holds a lien or would have held a lien if such lien had not been suspended, and in respect of his pay in the officiating post held by him, in the following manner, namely:-

 (A) in the case of all employees:

 (i) the pay in the applicable Level in the Pay Matrix shall be the pay obtained by multiplying the existing basic pay by a factor of 2.57, rounded off to the nearest rupee and the figure so arrived at will be located in that Level in the Pay Matrix and if such an identical figure corresponds to any Cell in the applicable Level of the Pay Matrix, the same shall be the pay, and if no such Cell is available in the applicable Level, the pay shall be fixed at the immediate next higher Cell in that applicable Level of the Pay Matrix.

 Further, Annexure of Implementation Cell, 7th CPC (O.M. No. 1-5/2016-IC, Dated 29.07.2016) clearly states that the Basic Pay (Pay in the applicable Pay Band plus applicable Grade Pay or basic pay in the applicable scale) in the pre-revised structure as on 01.01.2016 will be multiplied by 2.57.


Point of Doubt No.1: Some of the Local Account offices are saying that as per Para 4.(2) of Resolution, the Basic Pay ( pre-revised Pay in Pay Band plus Grade Pay as on 31.12.2015, not as on 01.01.2016) will be multiplied by 2.57.

Kindly clarify which basic pay will be multiplied by 2.57:

 (a) pre-revised Pay in Pay Band plus Grade Pay as on 31.12.2015
(b) pre-revised Pay in Pay Band plus Grade Pay as on 01.01.2016

 Effect in both conditions may be illustrated below: The pay of an employee XYZ was Rs. 12200 in PB-1 plus 2800 GP as on 31.12.2015 and on completion of 10 yrs regular service, he was granted financial upgradation on 01.01.2016 in the Grade pay of 4200. Thus his pre-revised basic pay was become Rs. 12650 in PB-2 plus Rs. 4200 GP as on 01.01.2016.

In such condition, LAO is fixing his pay as under :

(a) Pre – Revised Basic Pay as on 31.12.2015 : 12200 + 2800 = 15000
(b) Amount (a) is multiplied by 2.57 : 15000 x 2.57 = 38550
(c) Revised Pay in Pay Matrix in Level 5 : 39200
(d) Pay after giving one increment in : 40400 Level 5 on 01.01.2016
(e)Pay in upgraded level 6 (GP 4200) : 41100 as on 01.01.2016

As per federation’s interpretation, the fixation will be as under :

(a) Pre-Revised Basic Pay as on 31.12.2015 : 12200 + 2800 = 15000
(b) Pre-Revised Basic Pay as on 01.01.2016 : 12650 + 4200 = 16850 due to fixation benefit under FR 22.(I)(a)(1)
(c) Amount (b) is multiplied by 2.57 : 16850 x 2.57 = 43304
(d) Pay in upgraded level 6 (GP 4200) : 43600 as on 01.01.2016

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