OPTIONS - SERVING OFFRS -7 CPC PAY FIXATION

EXERCISING OPTION FOR FIXATION OF PAY UNDER 7TH CPC BY SERVING OFFICERS.

1.  The govt since approved the implementation of  the recommendations of the 7th pay commission, and have issued this time 7th CPC Army Pay Rules (Officers) in place of the Special Army Instructions giving broad directions for the implementation. Please read our last post on implementation of 7 CPC Recommendations for serving officers CLICK HERE TO READ.

2.   Under  Rule 10 all serving officers are required to send option within 180 days of the date of the publication for fixation of their pay either on 01 Jan 2016 or on a later date. In case no option is exercised their pays will be fixed as on 01 Jan 2016 which is more beneficial to large number of the officers.

3.    The officers are required to check and understand as to which of the options will be  more beneficial for them in the long run, i.e. whether to have their pays fixed  as on 01 Jan 2016 or later after earning the next increment, upgradation or promotion on 01 Jul 2016 if more beneficial to them in the long run.  In this blog-post we have attempted to work  out  the methodology to mathematically check and decide on the two options.

4.  We have tried to take live example of two serving Brigadiers, unfortunately we have not been yet able to get current salaries and other data of other offr's ranks, as such we will proceed with the Basic Pays as on 01-Jan 2016 (Pre-revised) and the Basic after increment on 01 Jul 2016. One of the two got promoted to Maj Gen  earlier this year ie 2017. The illustration goes step wise step as such any one can replace one's data here and check out the beneficial option based on charts given here.
 4a). These figs are as follows :-

 4b)  Basic Pre-revised pay on 01 Jan 2016  =  62030 (Add GP-8900, MSP-6000, DA      @ 125% hence total = 173093)

 4c)  Basic Pay  with increment on 01 Jul 2016 = 64160 (Add GP-8900, MSP-6000, DA      @ 125% hence total = 177885)

5.   Let us first fix the pay under Rule 7 of the Pay rules quoted above for both these figures ie of Jan and Jul 16.

5a)   Fixation on 01 Jan 2016

          *   Multliply Basic Pay(62030) plus GP(8900) with 2.57 = 71920x2.57 = 182290

          *   Look up 182290 in Matrix under Level 13 A.

          *   Hence FIXED at Stage 11=187700.

5b)  Fixation on 01 Jul 2016

           *   Multliply Basic Pay(64160) plus GP(8900) with 2.57 = 73060x2.57 = 187764

          *   Look up 187764 in Matrix under Level 13 A.

          *   Hence FIXED at Stage 12=193300.
     
WE MAY TABULATE  THIS DATA IN THE FORM AS SHOWN HERE.


6.   By simply looking at the stages  it is just the next stage in July 2016 which would in any case come as given under rule 10 on Page 12 of the Pay Rules which is reproduced here..

   "  Rule para 10 page 12
Provided that in case of Officers whose pay in the revised pay structure has been fixed as on 1st day of January, the next increment in the Level in which the pay was so fixed as on 1st day of January, 2016 shall accrue on 1st day of July, 2016.

   Page 13

Provided further that the next increment after drawal of increment on 1st day of July 2016 shall accrue on the 1st day of July 2017."

                          7th CPC PAY RULES ARMY (OFFRS)  

7.    One will easily deduce that  option for 01 Jan 2016 will be a better choice. However let us chart the figures as by this way one may find that it would be better to exercise July Option. Based on the data given above in Para 5 For a serving Brigadier by calculating gain per month following table will emerge:-

8.  Here we see that thee is a gain of Rs 30108 per month from Jan to Jul 16 as such cumulative till Jun 2016 will be Rs 180645/-  as arrears to be paid to the officer.
Similarly we see a gain of Rs 35136 Per Month ove what he had been getting during JUL to Dec 2016. Total arrears till Dec work out to 3,91,461/-.

9.  Let us now see what will happen if he takes Option 2 , Here he would suffer a loss of Rs 30107(8) per month as he will keep getting his pension at the pre revised rates. However let us see does he make good this loss by the gains of second half as compared to first half after his 7 CPC Pay Fixation is done on 01 Jul 2016. See coln - 17 , here his gain over Option -1 is NIL, as such he will never make up the loss.

10.  It will be seen that in case the above officer  does not take the option of Jan 16 , he will lose Rs 30107 per month for 6 months and there is no extra gain in Jul fixation since  the pay get fixed in the very next stage under the same Level only (13A - Look up the MATRIX below). As such there is no extra earning after the next increment to compensate for the losses as represented by the figure ZERO under coln 17.  Had the fixation was at one or two stages more than the Jan Stage it would have been of some advantage, may be in the long run. However in case there would have been up-gradation or promotion during this period and the basic pay pertaining to 6 CPC scales had been increased thereby stepping up the stage in the Level, it would have been of some advantage. Therefore one should actually chart out as above and the losses which may be there could \have been compensated in near future because of higher fixation.

11.  Now let us see the second offr who is promoted to Maj gen under level 14 with GP of 10000/- before Jun 2017. His basic Pay just before promotion was 64140/- just like the example we worked as above.

12.  His fixation on promotion will be as under :-

        * Current Basic + GP  multiplied by 2.57 =(64140+8900)x2.57= 187713

        * Check the matrix under Level 13A , Fixed at stage 12 = 193300

        * ONE INCREMENT ON PROMOTION  ie stage 13  = 199100

        * Add MSP - 199100+15500=214600. Look up this in Matrix under Level 14

        * Pay Fixed at  stage 15 of level  14 = 218200 which is the max stage.

13.  AN ILLUSTRATION WHERE JUL-16 IS A BETTER OPTION ::   We have been able to get Data in respect of an officer with GP of 10,000/- as under:-

TABULATING THE DATA OF 6th CPC DETAILS OF PAY

    Here you will notice that while fixation of his pay in Jan-16 under Option -1 he/she is at stage one of level 14 ie 144200 as per the matrix corresponding to his/her (BP+GP)x2.57 = 144177/-. He/she on next increment in JUL-16 will be at 148500/-. However if he/she opts for Option - Two i.e Fixation in July 16, his/her Fixn will be at the third stage of level 14 i.e 153000/- so that  under 0ption -2 in July-16 he/she will be benefited over the Option-One by Rs 4500/- in basic pay as calculated in the table below. However from Jan to Jun-16 he/she would continue to received the pre-revised scales upto the date of Fixation as may be chosen later than 01-Jan-2016. 

14.  These details have been worked out for comparison of the Option -one and that of Option-Two in the following tables:-




       NOTE :: The Civil CG employees should place ZERO in MSP cells rest of the details are common to all CG employees

15.   In this table it is simple his cumulative gain keeps going up as compared to pre-revised scales under Option -one and the arrears till Dec-2016 work out to Rs 262365. However under OPTION_TWO you will notice that from Jan to Jun 2016 he/she keeps getting his/her pre-revised scales as such in actual fact he/she is at a loss for 6 months which amounts to Rs 1,19,850/- upto Jun 2016. He/she however gains Rs 4590/- per month for life (Coln-12) from Jul -16 onwards than what he/she was getting under Option - One. It will be seen that the loss under Coln-13 starts to reduce progressively. This gain will finally compensate and break even in less than 26 months as shown above after which he/she will be a gainer till next promotion or pension for life. 

16.  Here is the point of decision based on this period of 26 Months and beyond, will depend upon the individual conditions. Since he/she has more than 26 Months (17 months have passed already) or the figure in individual cases, residual service he/she will be benefited not only during service  but also in Pension and Family Pension, he/she may take Option-2. 

     NOTE :: Consideration of Pension while deciding  the Option  is a very important factor which the serving officers are likely to ignore.

NOTE :- CAN ANY SERVING OFFR OF THE RANK OF MAJ, LT COL AND COL GIVE ME THEIR DATA AS AT PARA 5 ABOVE SO THAT WE CAN EXPAND THIS POST FOR THESE RANKS ALSO. PLEASE MAIL THE DATA TO     mgr.sigs@gmail.com  THANKS.

            7th CPC PAY MATRIX DEFENCE OFFICER (CLICK 2 DOWNLOAD)

        

17.  In his case therefore once again option will be Jan 2016. He will serve at this pay with no increments as long as he is Maj Gen.

NOTE - There is a special provision made for promotion from 13 A to 14 Level. For all other levels  on promotion one increment is given but MSP is not added for looking up the Matrix of the higher Rank. In this case though Maj Gens are not auth MSP but the advantage has been given to them under rule that Junior cannot draw more pay than seniors of the same Corps.

        Once again it is pointed out that we will up date this post with examples for  other officers of the rank Lt to Col once we receive the authentic data of their salaries in the present rank. 
        However, there is no difference in the methodology and the calculation formulaes as such one can reach the results by replacing the data here with own data.

18.  We have placed other details on 7th CPC in this blog site covering all aspects for all Civil and Def CG employees under following posts (CLICK ON TITLES) :-

        a)  7th CPC IMPLEMENTATION 2016 - ALL IN ONE DETAILS
        b)  7th CPC DEFENCE PENSIONS - GAIN OR NO-GAIN
        c)  EXERCISING OPTIONS FOR FIXATION IN JAN OR JUL 2016
       
OUR OLD POSTS ON 7 CPC
        

7th CPC IMPLEMENTATION

7 CPC - MoD RESOLUTION ISSUED

7th CPC - LATEST NEWS

7th PAY COMMISSION -2016

ANAMOLIES METED OUT BY PAST CPCs TO FAUJ