Pay fixation in revised pay bands (6th pay scales) applicable to central govt. employees in India

Sixth Pay Commission may be credited with new concepts in revision of pay scales of central government employees. It reduced number of pay scales drastically and introduced "Grade Pay" and Pay Band that were non-existent before the recommendations of 6th Pay Commission. What was the most remarkable recommendation of the 6th pay commission? Answer is new method of granting increment to government employees. As per old pattern, increment consist of a fixed amount that remained in practice till the implementation of recommendation of new pay commission.

Government of India notified revised pay scales for the Central Govt. employees on August 29, 2008. Government has approved the revised pay scales with minor modifications up to PB-2 (Pay Band/Scale). There are few mergers and up-gradations in pay scales and even in grade pay and also government has carved out new scale called HAG+. Government has also notified and issued clarifications and memorandum for allowances, pension benefits and pay fixation.Latest development has been conversion of fixed amount of pay to running pay in PB IV to employees earlier fixed in HAG+.

The revised Pay Band/Scales are shown below separately in three groups:

Pay Fixation:

Sixth Pay Commission suggested criteria for pay fixation that involved a simple calculation. Whatever an employee was drawing as basic pay on 1-1-2006 in the existing 5th CPC pay scales have to be multiplied by a factor of 1.86. The product of such a multiplication is to be rounded off to next multiple of 10. This will form the pay in the revised pay band. Pay worked out in this manner has to be added to grade pay as approved by the Government, corresponding to the pre-revised pay scale. The total of pay in the pay band and grade pay will be revised basic pay as on 1-1-2006. Recently, Finance Ministry issued a notification, dated 19th March, 2012, to grant one increment on 1.1.2006 in old pay structure to the employees whose next increment fall during the period between February 2006 and June 2006.

Total pay to new recruits at entry point on or after January 1, 2006, may be found clicking this link.