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 ₹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 ₹33,300.
Annaual Increment in 7th Pay commission
Withholding Annual Increments of Non-performers after 20 Years .
It will be opposed severely by Federations if the central government accept this recommendation to implement
The Criteria for Annual Increment is Minimum six Month Period of service to be done to be eligible for the Increment. Unlike in Private Sector the Performance of the individual has no role to play in granting of Annual increment in Govt sector.
But it will not be like this any more in Government Sector also . Not only Serious Concern expressed in this regard by 7th Pay Commission and further it made them to recommend for Withholding Annual Increments of Non-performers within the first 20 Years. The Pay commission recommendation is given below
‘….There is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course. The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted.
This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments. The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.
This will act as a deterrent for complacent and inefficient employees. However, since this is not a penalty, the norms for penal action in disciplinary cases involving withholding increments will not be applicable in such cases. This will be treated as an “efficiency bar”. Additionally, for such employees there could be an option to leave service on similar terms and conditions as prescribed for voluntary retirement”.
Fixation of Pay for Normal Fitment in 7th Pay Commission Pay Scale
Various anomalous situations normally will arise when pay fixation for Revised Pay in New pay scale is being done. So many different circumstances in service will make the Pay fixation process difficult. So Pay commission Various anomalous situations normally will arise when pay fixation for Revised Pay in New pay scale is being done.
So many different circumstances in one’s service will make the Pay fixation process difficult.
So the seventh Pay commission , in advance , illustrated some cases how the Pay fixation to be done.