Sunday, July 31, 2016

7th CPC DA calculation should give same benefit of Sixth CPC

An interesting point is raised by Mr. Alpesh on 7th CPC DA calculation as it is not giving the DA benefit we supposed to get from sixth CPC

A Comparison of current DA vs 7th Pay Commission DA

As per this current DA calculator

6th pay DA would be 7% and

7th pay DA is 2% from July onwards.

Now if we see this figures logically there is great disappointment. We actually can’t get 7th pay DA hike at least same as currently available system of 6th pay DA hike.

7th pay commission has raised basic pay with Multiplication factor 2.57.

Then logically DA revision pattern would also be such as which at least should maintain equivalency of 2.57 factor.

For example…

If one’s Basic pay in 6th CPC is Rs. 20000, So with fitment factor of 2.57 his Basic Pay in 7th pay will be 51400.

So as per DA calculator,  7% DA rise on 6th CPC Basic Pay will be Rs.1400 .

      2% DA rise on 7th CPC Basic Pay  will be 1028.

So current applicable DA system is clearly failing to maintain the parity between 6th pay and 7th pay consideration.

In order to achieve this balance either DA Calculation system or 7th pay fitment factor should be amended.

Suppose if  we think fitment factor should be amended to maintain the parity in DA Rates between Sixth and 7th CPC, then the should be such basic to be fixed so as give its 2% value as Rs. 1400.

Thus, the 7th CPC Basic Pay to be revised as Rs. 70000 instead of Rs. 51400.

And to arrive 70000 as basic Pay, the fitment factor should be revised to  3.5…!!!

If this issue is not considered timely then employee will suffer for upcoming 10 years.