PAY

 

PAY

1. Standard Pay Scales

·      The 7th Pay Commission replaced the previous Pay Band and Grade Pay system with a Pay Matrix.

·      The Pay Matrix has two dimensions:

·      Horizontal (Levels 1 to 18) corresponding to different ranks.

·      Vertical (Pay Progression) showing salary increments within a level.

·      The CCS (Revised Pay) Rules, 2016 implemented this new pay structure from 1st January 2016.

2. Pay Matrix and Pay Fixation

·      Pay Fixation on 1-1-2016:

·      Multiply the existing basic pay by 2.57, round off, and match it in the Pay Matrix.

·      If an exact match is unavailable, move to the next higher cell.

Level 13 Fitment Factor Clarifications:

·      Fixation in Level-13 uses 2.57, not 2.67.

·      If pay fixed in modified Level-13 is lower than the previous Level-13, recovery is waived till 30-06-2017.

·      Retired employees (between 1-1-2016 to 30-6-2017) will be protected under pension rules.

3. Stagnation and Bunching of Pay

·      Employees at the maximum of their pay band for more than 2 years (as of 1-1-2016) get one increment per two years of stagnation.

·      Bunching of Pay:

·      When two employees with different salaries (pre-2016) end up in the same pay cell, the senior gets one extra increment if their previous pay was at least 3% higher than the junior.

4. Pay Fixation on Promotion & MACP (Modified Assured Career Progression)

On Promotion:

·      One increment in the old level, then placed in the next equal or higher cell in the new level.

·      Employees with NPA (Non-Practicing Allowance) must ensure their basic + NPA does not exceed ₹2,37,500.

Fixation from Date of Next Increment (DNI):

·      Employees promoted before their increment date can choose to fix pay on DNI, receiving two increments.

MACP Scheme:

·      Pay fixation for financial upgradation follows regular promotion rules, with movement to the next immediate higher level.

5. Stepping Up of Pay (To Remove Anomalies)

·      If a senior employee earns less than a junior, their pay is stepped up to match the junior’s salary.

Conditions:

·      Same cadre, same post.

·      Same pay scale before promotion.

·      Direct impact due to pay fixation rules (not due to different promotions, qualifications, or personal choices).

6. Increments

·      Annual increments occur on 1st January or 1st July, depending on the appointment/promotion date.

·      Eligibility for Increment:

·      Minimum 6 months of service required for increment.

·      Training periods may count for increments if deemed necessary for the post.

·      Withholding of increments can be with or without cumulative effect, impacting future salaries.

7. Advance Increments

Given for exceptional cases like:

·      Fixing anomalies in pay structure.

·      Meritorious work in limited cases.

·      Stenographers clearing 100/120 WPM shorthand tests.

8. Lumpsum Incentives for Higher Qualifications

Ø Employees acquiring relevant higher qualifications after 1-7-2017 get a one-time incentive:

·      Ph.D. - ₹30,000

·      PG Degree (1+ years) - ₹25,000

·      PG Diploma (≤1 year) - ₹20,000

·      Degree (3+ years) - ₹15,000

·      Degree (≤3 years) - ₹10,000

Conditions:

·      Must be relevant to the job.

·      Maximum two incentives per career, with 2-year gaps.

·      Not applicable if the degree is a required qualification for the post.

9. Salary Attachment for Debt & Maintenance (Court Orders)

General salary attachment limits:

·      1st ₹1,000 and 2/3rd of the remainder cannot be attached (except for maintenance decrees).

·      1/3rd of salary can be attached for maintenance orders.

·      Allowances exempt from attachment:

·      TA, DA, House Rent, Uniform Allowance, Medical, Education, Foreign Allowance, etc.

10. Pay Protection & Direct Recruits from PSUs

Pay protection is allowed if:

·      The new government post requires specific experience.

·      Recruitment rules mention minimum experience criteria.

·      Pay is protected by adjusting Basic + DA at the nearest level in Pay Matrix.

Frequently Asked Questions (FAQs)

Q: If an employee is promoted and opts for pay fixation from DNI, how is their pay fixed?

Two increments in the old level, then fixed at the next equal/higher cell in the new level.

Q: If an employee voluntarily moves to a lower post, how is their pay fixed?

Pay is fixed at the nearest lower stage, with the difference given as personal pay, which will be absorbed in future increments.

 

Multiple Choice Questions
1.    The Seventh Pay Commission replaced the system of Pay Bands and Grade Pay with:

 

(A)                  Pay Scales

(B)                  Pay Matrix

(C)                  Fixed Salaries

(D)                  Level-based Pay Structure

Answer: (B) Pay Matrix

 2.    The pay progression within each level of the Pay Matrix is represented by:

 

(A)                  Horizontal range

(B)                  Vertical range

(C)                  Grade Pay levels

(D)                  Fixed Pay

Answer: (B) Vertical range

 3.    The pay of an employee on 1st January 2016 is multiplied by which factor to determine the new pay?

 

(A)                  2.67

(B)                  3.14

(C)                  2.57

(D)                  1.98

Answer: (C) 2.57

 4.    If an exact pay figure is not found in the Pay Matrix, what happens?

 

(A)                  The employee is placed at a lower level

(B)                  The immediate next higher cell is assigned

(C)                  The nearest matching salary is selected

(D)                  The pay remains unchanged

Answer: (B) The immediate next higher cell is assigned

 5.    The increment dates under the revised pay structure are:

 

(A)                  1st January and 1st July

(B)                  1st April and 1st October

(C)                  1st March and 1st September

(D)                  1st May and 1st November

Answer: (A) 1st January and 1st July

 6.    The fitment factor for Level-13 pay fixation is:

 

(A)                  2.67

(B)                  2.57

(C)                  3.00

(D)                  1.50

Answer: (B) 2.57

 7.    What happens if a Government servant reaches the maximum pay level and remains there for more than two years?

 

(A)                  Pay is frozen indefinitely

(B)                  One increment is granted for every two years of stagnation

(C)                  The employee is demoted

(D)                  Pay is reduced to a lower level

Answer: (B) One increment is granted for every two years of stagnation

 8.    What is the consequence of bunching in the revised pay structure?

 

(A)                  Employees at different stages receive the same pay

(B)                  Employees receive no pay revision

(C)                  Employees get an extra increment for every two stages bunched

(D)                  Employees lose an increment

Answer: (C) Employees get an extra increment for every two stages bunched

 9.    A government employee promoted from one level to another receives:

 

(A)                  No increment

(B)                  A single increment in the old level before shifting

(C)                  Two increments

(D)                  A fixed salary

Answer: (B) A single increment in the old level before shifting

 10. In case of promotion from the Date of Next Increment (DNI), how is pay fixed?

 

(A)                  One increment is granted on DNI, then the pay is re-fixed

(B)                  The pay remains the same

(C)                  Pay is fixed from the date of promotion only

(D)                  No increments are granted

Answer: (A) One increment is granted on DNI, then the pay is re-fixed

 11. An employee's pay as on 1st January 2016 is ₹25,000. Under the CCS (RP) Rules, 2016, what would be the basic pay in the new Pay Matrix?

(A)                  ₹57,500

(B)                  ₹64,250

(C)                  ₹50,000

(D)                  ₹25,000

Answer: (B) ₹64,250 (₹25,000 × 2.57)

12. A government servant was promoted on 1st March. When will he receive his next increment?

(A)                  1st July of the same year

(B)                  1st January of the next year

(C)                  On the next promotion

(D)                  No increment will be given

Answer: (B) 1st January of the next year

13. A senior employee was promoted before 1st January 2016, but his junior was promoted later and is receiving a higher salary. What should be done?

(A)                  The junior's salary is reduced

(B)                  The senior's pay is stepped up to match the junior’s

(C)                  Both employees get a fixed salary

(D)                  No change is required

Answer: (B) The senior's pay is stepped up to match the junior’s

14. An employee opts for a pay fixation on promotion from the DNI. How many increments will be granted?

(A)                  None

(B)                  One increment

(C)                  Two increments

(D)                  Three increments

Answer: (C) Two increments

15. A government servant is transferred to a lower post at their own request. How will their pay be fixed?

(A)                  Matched to the previous pay

(B)                  Fixed at the lower post level, and the difference is granted as personal pay

(C)                  Reduced permanently

(D)                  Set to the minimum of the lower post

Answer: (B) Fixed at the lower post level, and the difference is granted as personal pay

16. An employee’s pay is attached due to a court decree. What amount is exempt from attachment in the first instance?

(A)                  The first ₹5,000

(B)                  The first ₹1,000 and 2/3 of the remaining pay

(C)                  50% of the total salary

(D)                  No exemption

Answer: (B) The first ₹1,000 and 2/3 of the remaining pay

17. A government servant is given an ex-cadre appointment. How is their pay fixed?

(A)                  Based on the parent cadre pay

(B)                  Based on the ex-cadre post pay scale

(C)                  A fixed lump sum amount is provided

(D)                  Pay is reduced by 10%

Answer: (A) Based on the parent cadre pay

18. A stenographer recruited with an 80 w.p.m. shorthand speed clears a 120 w.p.m. test. How many advance increments is he eligible for?

(A)                  One

(B)                  Two

(C)                  Three

(D)                  None

Answer: (B) Two

19. A retired government servant finds that his junior was granted an option for pay fixation. What is his entitlement?

(A)                  He may exercise the same option within three months

(B)                  He gets no benefits

(C)                  He must go to court for redressal

(D)                  He must pay back any received salary

Answer: (A) He may exercise the same option within three months

20. An officer is transferred to another ex-cadre post. How is their pay fixed?

(A)                  Based on the pay in the previous ex-cadre post

(B)                  Based on the parent cadre pay

(C)                  Reduced by 5%

(D)                  Matched to the highest level in the matrix

Answer: (B) Based on the parent cadre pay

21. A government employee was drawing ₹45,000 as basic pay on 31st December 2015. Under the new pay matrix (effective from 1st January 2016), what will be his new basic pay?

 

(A)                  ₹1,00,000

(B)                  ₹1,15,650

(C)                  ₹57,750

(D)                  ₹1,35,000

Answer: (C) ₹57,750 (Calculation: ₹45,000 × 2.57 = ₹57,750)

22. An employee was promoted on 15th April 2023. When will he receive his next increment under the new rules?

 

(A)                  1st January 2024

(B)                  1st July 2023

(C)                  1st July 2024

(D)                  1st April 2024

Answer: (A) 1st January 2024 (If promoted between 2nd January and 1st July, the next increment is on 1st January of the following year.)

23. A senior employee was promoted on 1st June 2016, while his junior was promoted on 1st January 2017 and is now drawing a higher salary. What action can the senior employee take?

 

(A)                  Request a re-evaluation of the pay matrix

(B)                  Ask for a demotion to match his junior’s pay

(C)                  Apply for stepping up of pay to match the junior’s salary

(D)                  Resign and apply for a new job

Answer: (C) Apply for stepping up of pay to match the junior’s salary (Rule 7(10) of CCS (RP) Rules, 2016 allows pay stepping up if a junior is drawing more pay.)

24. A government servant has reached the maximum pay level in the Pay Matrix and has been stagnant for three years. What benefit is he entitled to?

 

(A)                  No further increment

(B)                  A demotion to the previous level

(C)                  One additional increment for every two years of stagnation

(D)                  Pay freeze for the next five years

Answer: (C) One additional increment for every two years of stagnation (Applicable as per Rule 10 of CCS (RP) Rules, 2016.)

25. An employee is transferred to a lower post at his own request. What will happen to his pay?

 

(A)                  It will be reduced to the minimum level of the new post

(B)                  It will be adjusted to the nearest lower level, and the difference will be paid as personal pay

(C)                  It will remain unchanged

(D)                  The employee will receive an additional allowance

Answer: (B) It will be adjusted to the nearest lower level, and the difference will be paid as personal pay (As per FR 15(a) rules.)

26. A government officer is promoted to a higher post but wishes to defer pay fixation to the date of his next increment. What will happen to his salary?

 

(A)                  He will immediately receive a salary hike

(B)                  His pay will be fixed on the next increment date with two additional increments

(C)                  His pay will be fixed after three years

(D)                  His pay will not be revised

Answer: (B) His pay will be fixed on the next increment date with two additional increments (As per FR 22 (I) (a) (1), if he opts for pay fixation from the Date of Next Increment.)

27. An employee was on Extraordinary Leave (EOL) for 5 months from January to May 2023. When will he get his next annual increment?

 

(A)                  1st July 2023

(B)                  1st January 2024

(C)                  1st July 2024

(D)                  He will not receive an increment

Answer: (C) 1st July 2024 (If an employee takes EOL for more than six months, the increment is postponed.)

 28. An employee who joined on 1st January 2023 gets promoted on 1st July 2023. When will he get his next increment?

 

(A)                  1st January 2024

(B)                  1st July 2024

(C)                  1st January 2025

(D)                  1st July 2025

Answer: (B) 1st July 2024 (As per FR 26, promotion on 1st July grants the next increment after 12 months.)

 29. A stenographer recruited with an 80 w.p.m. shorthand speed qualifies at 120 w.p.m. while in service. What pay benefit does he receive?

 

(A)                  No benefit

(B)                  One additional increment

(C)                  Two advance increments

(D)                  Promotion to a higher post

Answer: (C) Two advance increments (As per FR 27, stenographers qualifying for higher shorthand speeds get increments.)

 30. A government servant is under court attachment due to a financial decree. What portion of his salary is exempt from attachment?

(A)                  First ₹5,000 and half of the remaining salary

(B)                  First ₹1,000 and two-thirds of the remaining salary

(C)                  Full salary is attachable

(D)                  Only 30% is attachable

Answer: (B) First ₹1,000 and two-thirds of the remaining salary (As per CGA (R&P) Rules.)

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