Confederation Anomaly Point: Annual Increment is Less than 3% in Pay Matrix

Confederation Anomaly Point: Annual Increment is Less than 3 Percent in Pay Matrix


As per clause(C) of the terms of reference of the National Anomaly Committee — where the official side and the staff side are of the opinion that any recommendations is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the commission assigning any reason — it constitutes an anomaly.

Regarding annual increment the recommendations of seventh CPC are as follows:

i. 7th CPC Report — Highlights of Recommendations 

SL — 7 — Annual Increment — The rate of annual increment is being retained at 3 percent.

ii. 7th CPC Report — Forward

Para 1.19 — The prevailing rate of increment is considered quite satisfactory and has been retained.

iii. 7th CPC Report — Chapter 4.1 —Principles of Pay determination

Para- 4.1.17 — The various stages within a pay level moves upwards at the rate of 3 percent per annum.

iv. 7th CPC Report — Chapter 5.1 — Pay Structure (Civilian Employees)

Para 5.1.38 — Annual Increment

“The rate of annual increment is being retained at 3 percent”

Para 5.1.21 — The Vertical range of each level denotes pay progress within that level. That indicates steps of annual financial progression of 3 percentage within each level.

Contrary to the above principle laid down by the 7th CPC, the actual increment rate in the Pay levels of the Pay matrix are less than 3% as illustrated in the Table below:




In Level — 2, Cell — 2, the pay is shown as 20500. After giving one increment of 3% it should be 21115/- but the next cell is only 21000 (Level-2, Cell-3). Next stage should be 21115+633=21748 but the next cell is only 21700 (Level-2 Cell-4).

In Level — 6, Cell 14 should be 50500 + 1515 = 52015 whereas it is given only 52000. From the above it can be safely concluded that

i. Recommendation of the Pay Commission regarding increment rate is in contravention of the principle or policy enunciated by the 7th Pay Commission, Hence it constitutes an anomaly.

ii. In many stages, eventhough the increment is shown as 3%, it is rounded off to the next below amount causing financial loss to the employees.

iii.In the sixth CPC, while calculating increment, if the last digit is (one) or above, it used to be rounded off to next 10 (Ten). So in this Pay Matrix also if the amount is 10 (Ten) and above, it should be rounded off to the next above 100 (hundred).

iv. Even if the difference may look small (in percentage) it will also have long term impact on the employees promotion inviting heavy financial loss. The following illustration will reveal


Thus, for a loss of Rs.47/- only in the Annual increment, the employee will suffer a recurring loss of Rs.1400/- per month during his/her promotion to the next level and this loss will have cumulative effect on rest of the period of the service career with financial loss on Dearness Allowance (DA) and further promotions and also Pensionery benefits.

The above anomalies are to be rectified.


(1) As per the Finance Ministry OM dated 07.09.2016, the grant of bunching increment is subject to the condition that the difference between the lower pay and higher pay should be at least 3%. This condition adversely affects many of the employees. Contrary to the claim of the 7th Pay Commission that increment rate of 3% is maintained, in many pay levels, the difference between lower cell and next higher cell is less than 3% showing that increment rate is less than 3%. Due to this inherent anomaly is granting justified (3%) increment the employees should not be made to suffer in the case of bunching. It is not the fault of the employees but due to faulty increment rate fixed by the commission in each pay level. This anomaly is to be set right by withdrawing the 3% condition from the Finance Ministry orders dated 01.09.2016.

(2) The pay as per the 7th CPC of MTS drawing pay of 7210 and 7430 in the pre-revised pay is bunched and fixed at Rs.19700. As per the bunching orders issued by Finance Ministry, the official drawing Rs.7430 in the pre-revised scale will get additional increment and will be fixed at Rs.20300/- with effect from 01.01.2016. But the MTS officials drawing Rs.7660/- in the pre-revised pay are also getting revised pay fixed at Rs.20300 with effect from 01.01.2016. It is requested that to remove the anomaly, the MTS officials who are drawing Rs.7660/- in the pre-revised scale may also be made eligible to get additional increment.

Source : Confederation

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