Monday, June 02, 2014

Actually there is no increase in the Revised Pay

With the revised pay scale the government has stated pay growth ranging from 19% to 25% for civil servant from O to EX level. But when we see the real increase in the pay-scale it is disheartening to see that the actual pay rise is only about 6% which is taken back as TDS. For instance lets calculate the first grade teacher's pay.
Old basic pay=14460/- and New basic pay=17495/-
Difference: 17495-14460=3035/-
Allowance before=2142/- given by DPT
Actual increase=3035-2142=893/-
Actual pay growth= 893/14460= 0.617*100= 6.17%
But the new government's politics and mastermind calculated as
3035/14460=0.209*100=20.9=21% so cleaver including previous pay allowance. The 6% pay he or she get as Nu. 893 and for sure this will be deducted as TDS, so actually there is no pay rise. Of course more increment but TDS also deducted as par increment. The 20% HRA and increased in the basic pay seems to be beneficial but I think it is not sufficient, any way something is better than nothing. However, I urge government to do justice because in the name of pay increase everything is going to be expensive.

 
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