An Alternative Approach to Bunching

This post, written by Rudra Sarkar, provides the idea about benefits of bunching for those who are more mathematically inclined.

Statutory warning: The explanation given here describes the principle behind the bunching, but does not take care of the issue of rounding. So naive application may cause results to differ.

By salary in 6th CPC we shall mean ‘pay in pay band’+AGP. Colloquially ‘pay in pay band’ is called basic.

In 7th CPC, salary will mean the basic. There is no AGP in 7th CPC.

Annual increment in 6th CPC is 3%. Same is true for 7th CPC.

We assume you were an assistant professor, associate professor, a professor or a HAG in a CFTI institute on Jan 1, 2016. Your salary (pay in pay band+AGP) in 6 cpc was x.

Locate your level (which is determined by your AGP), 6th CPC Entry Pay E and the Index of Rationalization, IOR from the Table below.

Position 6th CPC AGP 6th CPC Entry Pay, E IOR Level
Asst Prof Grade II 6000 21600 2.67 10
Asst Prof Grade II 7000 25790 2.67 11
Asst Prof Grade I 8000 38000 2.67 12
Asst Prof Grade I 9000 49200 2.67 13A1
Assoc Prof 9500 52300 2.67 13A2
Professor 10000 53000 2.72 14
Professor 10500 58500 2.72 14A
HAG HAG 67000 2.72 15

For any n=1, 2, 3, 4, \ldots, define E(n)= E \times (1.03)^{n-1}. So E(1) = E.

Step 1: Determine your Stage:

If E(n)\le x<E(n+1), then your “stage” in 6th CPC is n and if x< E(1), then your stage is 1.

Suppose your stage in 6th CPC is m. Then

Step2: Your salary in 7th CPC on Jan 1, 2016 is E \times IOR \times (1.03)^{m-1}. Period.

Step 2 (Alternative): Use the 7th CPC pay matrix table: Go to the column corresponding to your level and then go to the line m. That is your correct salary in 7th CPC on Jan 1, 2016. (This alternative Step 2 will take care of rounding off for 7th CPC.)

Basic reasoning here is that, in 6th CPC, you were in stage m or higher, but below m+1. So you should be in stage m in 7th CPC. However, if you were below E, you got an extra benefit as you were considered to be at stage 1.

To summarize, once again: Your salary was x, but it will be mapped to E(m)= E \times (1.03)^{m-1} in 6th CPC if E(m)\le x<E(m+1) . Your 7th CPC salary is then E \times IOR \times (1.03)^{m-1}.

How to get benefit of bunching?

In the last post, we have already discussed bunching and illustrated how to derive benefit out of it through an illustration. This post provides a thumb rule to quickly calculate the benefit. (This method is equivalent to the benefit described in the August 2017 order, which we shall discuss in a later post.)

For illustration, we shall again use the rank of Assistant Professor Grade I with AGP 9000 and Level 13A1 at the Entry Pay 49200. Recall the cells in the corresponding column of the 7th CPC pay matrix are given by: 131400, 135300, 139400, 143600, 147900, 152300, 159600, 161600, 166400, 171400, 176500, 181800, 187300, 192900, 198700, 204700.

Method:

  • Create stages in 6th CPC starting from Entry Pay, multiplying every time by 1.03 and rounding up to the nearest multiple of 10 larger than or equal to it.
  • Count number of stages smaller than or equal to your old salary in 6th CPC.
  • Your new salary in 7th CPC under fixation will be obtained by looking at the same numbered cell of your column in the 7th CPC pay matrix.
  • However, if the old salary in 6th CPC is less than the 6th CPC Entry Pay, it will be fixed at the first cell of your column in the 7th CPC pay matrix.

For our example, the stages in the  6th CPC are obtained in the table below:

6th CPC Stages

Multiply by 1.03

Round up

49200

50676

50680

50680

52200.4

52210

52210

53776.3

53780

53780

55393.4

55400

55400

57062

57070

57070

58782.1

58790

58790

60553.7

60560

60560

62376.8

62380

62380

64251.4

64260

64260

66187.8

66190

66190

68175.7

68180

68180

70225.4

70230

70230

72336.9

72340

72340

74510.2

74520

74520

76755.6

76760

Note that the stage after 74520 is supposed to be at 76720, which is beyond the stagnation value of 76000 of this AGP and will not be considered.

Now consider the old 6th CPC salary 52500. As can easily be seen from the above table, there are 3 6th CPC stages below it. Hence the salary fixed after giving the bunching benefit will be 139400, the third cell in the corresponding pay matrix column given earlier. On the other hand, multiplying 52500 by 2.57 yields 134925 whose nearest larger cell in the relevant column of the pay matrix is 135300, which would have been the new salary without bunching benefit. Note that not giving bunching benefit causes a loss of 139400 – 135300 = 4100.

Note that the old 6th CPC salary above 74520 and till the stagnation salary 76000 will not create a separate stage as the gap with 74520 will be less than 3%. Those old values will be fixed at the same value as 74520, which can be checked as 198700.

What is bunching?

You may have checked your fitment after benefits of bunching in the last blogpost. And you may now be wondering how did those fitments appear in the table? This blogpost tries to explain what bunching is. Calculation of benefits will be taken up in a followup post. It is written with the faculty members of CFTI in focus, but it should equally apply to everybody affected by 7th CPC.

To get started, you need a few documents giving the pay revision orders for different categories:

You need to obtain the pay matrix from the order relevant for you and find the column corresponding to your level in the matrix. You shall also need the Entry Pay, which are available for the faculty members in their respective orders above, while for the rest, it can be obtained from the values of Entry Pay mentioned in Table 4 on Page 73 of the report of the 7th CPC.

Now you should have the relevant column of the 7th CPC pay matrix for your AGP/GP and the corresponding Entry Pay in 6th CPC. We shall illustrate for the Assistant Professor Grade I for CFTI with AGP 9000 corresponding to Level 13A1 and Entry Pay 49200. The corresponding cells are: 131400, 135300, 139400, 143600, 147900, 152300, 159600, 161600, 166400, 171400, 176500, 181800, 187300, 192900, 198700, 204700.

As per 7th CPC order, your salary in 7th CPC will be fixed by multiplying your old salary in 6th CPC by 2.57 and rounding off to the nearest multiple of 100. We shall illustrate the change for the following old salaries 47800, 49200, 50000, 50680, 52210. It is given in the table below:

6th CPC Salary

Multiply by 2.57 Next Larger Cell

47800

122846

131400

49200

126444

131400

50000

128500

131400

50680

130247.6

131400

52210 134179.7

135300

However, as you can see above, this causes a situation whereby two different salaries in 6th CPC gets mapped to the same new value. 7th CPC considers them to be bunching provided:

  1. The salary is larger than or equal to the Entry Pay (49200 in the instant case)
  2. Gap between two salaries in 6th CPC is more than 3% which corresponds to one increment.

Since 47800 is smaller than the Entry Pay 49200, this does not qualify for bunching. Again, the gap between 49200 and 50000 being less than 3% do not qualify for bunching, but 49200 and 50680, both being larger than or equal to the Entry Pay and at a gap larger than 3%, qualify for bunching. Further example may be found in Paragraph 5.1.37 on Page 80 of the report of the 7th CPC. Such a situation has been called bunching.

Bunching has been addressed by the 7th CPC itself and relevant order has been issued on 7th September 2016 and further clarified in the continuation order on 3rd August 2017. It requires the larger of two bunched salaries to be given an additional increment in 7th CPC. Thus while the first 3 rows of the above table gets fixed at 131400, the fourth one gets fixed at 135300. Note that this causes bunching again with fifth row, as 50680 and 52210 are more than 3% apart. So the fifth row will be fixed at the next cell 139400.

Tell me quick: Where is the moolah!

Some of you may not be interested in going through all the details of bunching, but are simply interested about what should be your correct fitment after getting the bunching benefits. For those – at least those who are faculty members in the CFTIs with AGP 8000, 9000, 9500, 10500 or HAG – simply look up your appropriate column in the table below based on your AGP.

Locate the row of your 6th CPC salary (sum of payband pay and AGP/GP) on the left subcolumn: if it is not there, choose the row containing the value just smaller than your old salary. The corresponding row on the right subcolumn will give your fitment.

For example, if you are an Assistant Professor Grade I with AGP 9000 and old 6th CPC salary 51500, then the row containing the value just smaller than yours will be the fourth one with value 50680. Hence your fitment will be 135300.

Rank

Assist Prof Grade I

Assoc Prof Professor

Prof (HAG)

Level

12

13A1 13A2 14A

15

AGP

8000

9000 9500 10500

HAG

Entry Pay (6CPC)

38000

49200 52300 58500

67000

IoR

2.67

2.67 2.67 2.72

2.72

  6CPC 7CPC 6CPC 7CPC 6CPC 7CPC 6CPC 7CPC 6CPC 7CPC
  38000 101500 46400 131400 52300 139600 58500 159100 67000 182200
  39140 104500 47800 131400 53870 143800 60260 163900 69010 187700
  40320 107600 49200 131400 55490 148100 62070 168800 71090 193300
  41530 110800 50680 135300 57160 152500 63940 173900 73230 199100
  42780 114100 52210 139400 58880 157100 65860 179100 75430 205100
  44070 117500 53780 143600 60650 161800 67840 184500 77700 211300
  45400 121000 55400 147900 62470 166700 69880 190000 79000 211300
  46770 124600 57070 152300 64350 171700 71980 195700   217600
  48180 128300 58790 156900 66290 176900 74140 201600   224100
  49630 132100 60560 161600 68280 182200 76370 207600    
  51120 136100 62380 166400 70330 187700 77500 207600    
  52660 140200 64260 171400 72440 193300   213800    
  54240 144400 66190 176500 74620 199100   220200    
  55870 148700 68180 181800 76500 199100        
  57550 153200 70230 187300   205100        
  59280 157800 72340 192900   211300        
  61060 162500 74520 198700            
  62900 167400 76000 198700            
        204700            

What is this blog about?

The 7th CPC pay revision came with much shorter delay than the earlier ones. While the revision was welcome, it came with its own set of woes. While the difficulties in extending this pay fixation to the autonomous bodies in comparison to the direct government employees (like condition of the autonomous body generating 30% of the enhanced salary or not extending the enhancement of allowances) are well-known and discussed, a much less known issue is that of benefit of bunching. Surprisingly, this affects the government employees as much as the employees of the central autonomous bodies and this is an issue which has occurred in past pay fixations as well.  Yet there seems to be widespread confusion about the matter.

Some of us at Indian Statistical Institute faced the problem as well and made an attempt to understand the problem. This blog is an effort to share our understanding of the matter with others, with a hope that they may also find it useful to correct their fixations. We try to provide links to relevant materials for quick reference and better understanding. As a first step, we shall restrict our discussion to that for the faculty members of CFTIs in Levels 12, 13A1, 13A2, 14A and 15. However, the discussion easily and naturally generalize to all levels and we hope to do it in not too distant future. Anybody else helping us out in this direction is welcome too. We also plan to come up with an online calculator, initially for aforementioned Levels, but eventually and hopefully to be extended to all Levels.

THANK YOU!