Annual Increment for Central Govt Employees – Comparison table between 5th & 6th CPC

 An overview about Central Government Employees’ Increment

‘Increment’ is definitely one of the most popular words in the Central Government employee’s dictionary. It is a known fact that each year, without fail, increment brings considerable raise in salary for Central Govt employees. Until about the 5th CPC, there was no major change in the increment system. But, the 6th CPC brought in landmark reforms in the increment system.

Until then, increments were given in the form of a consolidated amount. The 6th CPC recommended that it be calculated on percentage basis. The Central Government ordered that it be calculated at 3% of the employee’s basic pay with effect from 1.1.2006.

The CG employees didn’t realize how useful this was going to be. They thought it wouldn’t amount for much. It was Rs.75 for Rs. 3050 and revised to Rs. 210 for Rs.7000 with simple calculation.

But that was not the end of the story. It was only after a number of years that they realized the true impact of this reform. Let us explain the benefits with an example:

Let us consider the examples of A, and B, two employees who had joined the Central Government services: In five years of getting recruited, B gets a promotion. A gets a promotion three years after B.

On the basis of the 6th CPC :

6th CPC
A’ Employee				B’ Employee
1.9.2008	1900	5830	7730	1.9.2008	1900	5830	7730
1.7.2009	1900	6070	7970	1.7.2009	1900	6070	7970
1.7.2010	1900	6310	8210	1.7.2010	1900	6310	8210
1.7.2011	1900	6560	8460	1.7.2011	1900	6560	8460
1.7.2012	1900	6820	8720	1.7.2012	1900	6820	8720
1.7.2013	1900	7090	8990	1.7.2013	2400	7090	9490
1.7.2014	1900	7360	9260	1.7.2013	2400	7380	9780
1.7.2015	1900	7640	9540	1.7.2014	2400	7680	10080
1.7.2016	2400	7930	10330	1.7.2015	2400	7990	10390
1.7.2016	2400	8240	10640	1.7.2016	2400	8310	10710

On the basis of the 5th CPC :

5th CPC
‘B’ Employee			‘A’ Employee
1.2.2000	3050		1.2.2000	3050
1.2.2001	3125	75	1.2.2001	3125	75
1.2.2002	3200	75	1.2.2002	3200	75
1.2.2003	3275	75	1.2.2003	3275	75
1.2.2004	3350	75	1.2.2004	3350	75
1.2.2005	4000	100	1.2.2005	3425	75
1.2.2006	4100	100	1.2.2006	3500	75
1.2.2007	4200	100	1.2.2007	3575	75
1.2.2008	4300	100	1.2.2008	4000	100

Can you understand the difference now?

In 6th CPC the difference between ‘A’ and ‘B’ will be Rs.70 only, whereas in 5th CPC it will be Rs.300.
The Junior doesn’t have to worry that the senior has a tremendous advantage over him. In the past, the Junior wouldn’t be able to attain the Senior’s basic pay until retirement.

Source: http://90paisa.blogspot.in/2014/04/annual-increment-for-central-govt.html