PAY FIXATION FORMULA under different CPCs.

1. PAY FIXATION FORMULA under 4th CPC (01.01.1986)

a) Basic Pay (BP) as on 31.12.1985 +
b) Dearness Pay (DP) @ 27 % of BP subject to minimum of Rs. 108
and Maximum of Rs.243 to all Pay Ranges +
c) Ad. hoc Dearness Allowance (ADA):
Pay Ranges Rates of ADA
Pay Up to Rs. 299 165 % of BP (Minimum Rs.35+
148% of BP and Maximum of
Rs.494)
Pay from 300 to 399 Rs.62+144% of BP
Pay from 400 to 799 123%of BP,
Minimum 15.5% +Rs.576
Pay from 800 to 899 111% +Rs.100
Pay from 900 to 999 108% +Rs.127
Pay from 1000 to 1999 Rs.1207
Plus (+)
d) First Interim Relief (1st.IR) wef.1.6.1983:
Pay Ranges Rates of 1st. IR
Below Rs. 300 Rs. 50
Rs. 300 to Rs. 699 Rs. 60
Rs. 700 to Rs. 1599 Rs. 70
Rs. 1600 to Rs. 2249 Rs. 80
Rs. 2250 and above Rs.100 (plus +)
e) Second Interim Relief (2nd. IR) wef.1.3.1985:
10 %of Basic Pay subject to minimum of Rs.50
 (Note : 50 paise and above will be rounded to rupee 1.) (Plus +)

f) Weightage : 20 % of Basic Pay.

g) Revised Pay under 4th CPC will be the aggregate of (a) to (f)
above, fitted to the stage in the related Pay Scale.
In case the revised Pay is fixed at minimum of the Pay scale,
then one increment in the revised scale has to be paid and the
pay has to be fixed accordingly.

2. PAY FIXATION FORMULA under 5th CPC (01.01.1996)

a) Basic Pay (BP) as 31.12.1995 +

b) Dearness Allowance:
Pay Ranges Rates of ADA
Pay Up to Rs. 3500 148 % of BP
Pay from 3501 to 6000 111% of BP, (Minimum Rs. 5180)
Pay from 6001 and above 96% of BP, (Minimum Rs.6660)

c) Interim Relief : Rs. 100 + 10 % of Basic Pay

d) Weightage : 40 % of the Basic Pay

e) Revised Pay under 5th CPC will be the aggregate of (a) to (d)
above, fitted to the stage in the related Pay Scale.

f) In case the revised Pay is fixed at minimum of the Pay scale/

Upgraded Pay scale, then one increment in the revised scale
has to be paid and the pay has to be fixed accordingly.

3. PAY FIXATION FORMULA under 6th CPC (01.01.2006)

a) Basic Pay as on 31.12.2005 +

 b) Dearness Pay : 50 % of Basic Pay +
c) Dearness Allowance : 24 % of (Basic Pay + DP)
Or in Simple Term : (Basic Pay X 1.86)

The amount derived as above to be fitted with the appropriate

pay slab given in the related Pay band.. and
Grade Pay appropriate to pre-revised Pay scale in that Pay
Band has to be determined.
Thus the Total Pay under 6th CPC will be equal to Pay + Grade
Pay as derived above.

(Pay fixation in case of merger of pay scales / Upgradation of

Pay scales/ Stepping up of pay scales and cases of ACP and
MACP are not discussed here.)

4. PAY FIXATION FORMULA under 7th CPC (01.01.2016)

a) Identify basic Pay (Pay in the pay band plus Grade Pay) drawn
by an employee as on the date of implementation. This
figure is ‘A’.

b) Multiply ‘A’ with 2.57, round-off to the nearest rupee, and

obtain result ‘B’.

c) Identify the pay level corresponding to the Grade Pay of the

employee in the new Pay Matrix.

d) Find the cell that contains the same pay in the pay matrix
and the pay level assigned to the employee.

e) The pay in the new pay matrix is the pay corresponding to

the cell in which the two figures match.
 f) If the identical figure is not available in the given level, the
next higher figure closest to it would be the new pay of the
concerned employee.
Examples of Pay Fixation under 7th CPC
Example I
i. For example an employee PP is presently drawing Basic Pay of ₹55,040 (Pay in the
Pay Band ₹46340 + Grade Pay ₹8700 = ₹55040). After multiplying ₹55,040 with 2.57,
a figure of ₹1,41,452.80 is arrived at. This is rounded off to ₹1,41,453.

ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives
the full correspondence between existing Grade Pay and the new Levels being proposed.

iii. In the column for level 13, the figure closest to ₹1,41,453 is ₹1,41,600.

iv. Hence the pay of employee PP will be fixed at ₹1,41,600 in level 13 in the new
pay matrix as shown below:

As part of its recommendations if Commission has recommended any upgradation

or downgrade in the level of a particular post, the person would be placed in the
level corresponding to the newly recommended grade pay.

Example II
i. Take the case of an employee XX in GP 4200, drawing pay of ₹20,000 in PB-2. The
Basic Pay is ₹24,200 (20,000+4200). If there was to be no change in XX’s level the pay
fixation would have been as explained in Example I above. After multiplying by 2.57,
the amount fetched viz., ₹62,194 would have been located in Level 6 and XX’s pay
would have been fixed in Level 6 at ₹62,200.

ii. However, assuming that the Commission has recommended that the post occupied by XX
should be placed one level higher in GP 4600. XX’s basic pay would then be ₹24,600 (20000
+ 4600). Multiplying this by 2.57 would fetch ₹63,222.

iii. This value would have to be located in the matrix in Level 7 (the upgraded level of XX).

iv. In the column for Level 7 ₹63,222 lies between 62200 and 64100. Accordingly, the pay of
XX will be fixed in Level 7 at ₹64,100.
Classification of post of Senior Accounts Officer &
Senior Audit Officer from Group ‘B’ to Group ‘A’ in the
IA&AD – DoE
No.A.12018/1/2013-EG
Government of India
Ministry of Finance
Department of Expenditure
EG Branch
***

North Block, New Delhi.

Dated: 16.05.2019

OFFICE MEMORANDUM

Subject:- Classification of post of Senior Accounts Officer and Senior

Audit Officer in the IA&AD- O/o Comptroller and Auditor General of
India.

In compliance with the directions of Hon’ble High Court of Delhi

contained in Order dated 17.09.2013 in WP(C) No.2698/2013 filed by
All India Audit and Accounts Officer Association, the post of Sr. Audit
Officer and Sr. Accounts Officer in the Indian Audit and Accounts
Department in Pay Level 10 earlier classified as Group ‘B’ post, is
classified as Group ‘A’ without any change in the Pay Level.

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