One Day, One Minute, One Rule – 80
80. What specific methodology and principles were clarified in the Ministry of Finance Office Memorandum No. 1-6/2016-IC/E-IIIA dated 07th February, 2019, regarding the application of the "bunching" of pay stages during pay fixation in the 7th CPC Pay Matrix (effective 1.1.2016), and how did the O.M. distinguish this from the practice under the 6th CPC?
This Office Memorandum (O.M.) from the Ministry of Finance, Department of Expenditure, bearing No. 1-6/2016-IC/E-IIIA and dated 07th February, 2019, clarifies the methodology for applying the principle of "bunching" of pay stages during the fixation of pay in the revised pay scales (Pay Matrix Levels) based on the Seventh Central Pay Commission (CPC), effective from 1.1.2016.
The O.M. emphasizes that the 7th CPC's bunching principle is distinct from the one followed under the 6th CPC regime The core clarification, drawn from the 7th CPC's illustration in para 5.1.37 of its report, is that if two different pay stages in the pre-1.1.2016 pay structure, which were separated by an increment of 3% of the previous stage, are fixed at the same cell of the applicable Level in the 7th CPC Pay Matrix, the benefit of bunching (one additional increment) shall be admissible to the pay that is 3% more than the previous pay.
Furthermore, the O.M. clarifies that after this initial bunching benefit, no further action (i.e., no additional increment) is to be taken for subsequent pre-revised stages that may also fall into the same revised pay cell due to the initial bunching.
For the purpose of counting two stages in the sixth CPC structure, a difference of at least 3% (the rate of annual increment) between two pay amounts is essential. Bunching is not related to the seniority of officers, but to the fixation of two distinct pre-revised pay stages into the same revised pay cell.
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