7th pay commission: This is why these central government employees get more money
7th Pay Commission: The IOR is a figure decided by keeping in mind the degree of responsibility, accountability and power, which a government employee has based on his rank.
7th Pay Commission: Central government employees at all levels are unhappy with the pay hike and the recommendations of the 7th Pay commission and have been demanding a better pay as per the fitment factor of 3.68 times. The 7th CPC recommended an increase in salaries through a fitment factor hike of 2.57 times at the lowest level, setting the minimum salaries at Rs 18,000 while the government employees wanted minimum salaries to be fixed at Rs 26,000.
While that is a demand all staffers are fighting unitedly, the lower level government employees have had to deal with the fact that there was a big pay disparity among the employees at different levels as higher end staff got higher salary increases due to the fitment factor formula used by the process. One of the reasons for the pay disparity was Index of Rationalisation. Though the 7th pay commission had recommended that the fitment factor of 2.57 times be applied uniformly for all employees, the application of the IOR had given big pay benefits to the senior level employees.
What is Index of Rationalization in the 7th Pay Commission?
The IOR is a figure decided by keeping in mind the degree of responsibility, accountability and power, which a government employee has based on his rank.
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How it is Index of Rationalization in the 7th Pay Commission applied?
A finance ministry document showed that the pay commission had used the IOR to reach the starting cell of each level of the pay matrix.
"The 7th Central Pay Commission, while formulating the various Levels contained in the Pay Matrix, corresponding to the pre-Revised pay structure, used 'Index of Rationalization' (IOR) to arrive at the starting Cell of each Level (the 1st Cell) of the Pay Matrix. This IOR has been applied by the Commission on the minimum entry pay corresponding to the successive Grades Pay in the pre-revised pay structure," reads the document.
What is its impact on the salaries of the central government employees?
The IOR increased the fitment factor for the employees who have more degree of responsibility, accountability. For example, a Level 1 employee say a peon has to only perform his day to day duties while those at the secretary level have more responsibilities and accountability. Therefore, they get pay by a higher fitment factor.
Check out the Level-wise pay matrix and the IOR's effect on the fitment factor:
On 2.57 fitment factor
Level 1: Rs 18000
Level 2: Rs 19900
Level 3: Rs 21700
Level 4: Rs 25500
Level 5: Rs 29200
On 2.62 fitment factor initial increment
Level 6: Rs 35400
Level 7: Rs 44900
Level 8: Rs 47600
Level 9: Rs 53100
On 2.67 fitment factor initial increment
Level 10: Rs 56100
Level 11: Rs 66400
Level 12: Rs 78800
Level 13: Rs 118500
Level 13A: Rs 131100
Level 14: Rs 144200
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On 2.71 fitment factor initial increment
Level 15: Rs 182200
On 2.72 fitment factor initial increment
Level 16: Rs 205400
On 2.81 fitment factor initial increment
Level 17: Rs 225000
On 2.77 fitment factor initial increment
Level 18: Rs 250000