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3rd Pay Revision CPSE: Increment, Bunching of Pay, Dearness Allowance in Revised Pay Structure

 (Annexure to DPE OM
No. W-02/0028/2017-DPE (WC)-GL-XIII/17 dated: 3rd August, 2017)

Increment, Bunching of Pay, Dearness Allowance in Revised Pay Structure –
Annexure-III

Annexure-III (A) 
(Para 6) 
Stagnation Increment: In case of reaching the end point of pay scale, an executive would be allowed to draw stagnation increment, one after every two years upto a maximum of three such increments provided the executives gets a performance rating of ‘Good’ or above. 
Bunching of Pay: – In CPSEs where a lower fitment benefit (i.e. 10% or 5%) is granted due to affordability, there is a possibility of bunching at different grades due to revised Basic Pay falling short of reaching starting point of revised pay-scale. The revised BP due to bunching of pay in these cases would be the higher of the followings – 
  • Adding the difference between the ‘pre-revised Basic Pay’ and ‘the minimum of the pre-revised pay scale’ to the starting point of revised pay scale. 
  • The revised BP as arrived after applying the fitment benefit (ie 10% or 5% of BP plus DA). 
[Example for Basic Pay revision in cases of bunching in a Grade/level] 
Sl. No,
Parameters
Pre-revised pay-scale of E-6 level (in Rs.)
Minimum/ Starting of pay-scale Minimum + 1 increment @3% Minimum + 2 increments @3% Minimum + 3 increments @3%
(A) (B) (C) (D)
1 E-6 level:Pre-revised BP (31.12.16) 36600 37700 38840 40010
2 DA (1.1.2017) Say:120% 43920 45240 46608 48012
3 Total (1) + (2) 80520 82940 85448 88022
4 Fitment benefit % of BP+DA 5% 5% 5% 5%
5 Fitment benefit amount (4) x (3) 4026.0 4147.0 4272.4 4401.1
6 Net amount to  arrive at revised BP (3) + (5) 84546.0 87087.0 89720.4 92423.1
7 Rounded off Next Rs.10/- 84550 87090 89730 92430
8 Minimum of E-6’s revised pay-scale Starting point 90000 90000 90000 90000
9 Difference between the  ‘pre-revised  Basic Pay’ and the ‘minimum of the pre-revised pay scale’ Linked to figure at Column (A) mentioned at SI. No.1. (A) – (A)i.e.36600-36600 (B) – (A)i.e.37700-36600 (C) – (A)i.e.38840-36600 (D) – (A)i.e.40010-36600
10 Difference amount = 0 1100 2240 3410
11. Net of difference added to starting point of revised pay-scale (8) +(10) 90000 91100 92240 93410
12.  Revised Pay-scale Higher of (7) or (11) 90000 91100 92240 93410
Annexure-III (B) 
(Para 7) 
Rates of Dearness Allowances for the employees of CPSEs following IDA pattern 
Effective Date Rate of Dearness Allowance (in percentage)
01.01.2017 0
01.04.2017 -1.1
01.07.2017 -0.2

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