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Dear ,
I have a question related salary slabs
mostly i have seen in the Govt. employees salary their are salary like 5000-500-20500
please help me in understanding these and how they make these slabs & did pvt companies also do so

Dear friend,
The Govt organizations will have pay scales and fixed increments, no performance based revisions but in the private companies it is totally performance based process.
In Govt the promotions also time bound. The Ovt., Public limited companies are in to totally a competitive field and you may not be able to meet the market requirement if you don't implement performance linked pay system & even performance linked incentives / bonus, amenities, perks etc.,
Thanks and regards -kamesh

thanks Mr kamesh i want to know why the make such scales like 5000-500-20500 dose it means 5000 is basic pay 500 is increment per year 20500 is the last limit at a particular post. please explain
Hi,

The current level of salary of Government employees was last revised by the 6th Pay Commission.

Currently, there are 20 grades spread across 4 distinct pay bands plus one Apex Scale and yet another one for the post of Cabinet Secretary or equivalent.

The minimum salary at entry level (PB – 1 pay band) has been fixed at Rs. 6,660/= (Rs. 4,860/= as pay and Rs. 1,800/= as Grade Pay). Maximum salary at the level of Secretary or equivalent is fixed at Rs. 80,000/=. The ratio between the minimum and maximum salary has been fixed at 1:12.

The increments etc are treated as follows:

1. At the time of promotion from one grade to another, the grade pay attached to the post would undergo a change and the grade pay applicable to the higher grade would be applicable.

2. Additionally, an increase in the form of one increment would be given at the time of the promotion.

3. Annual increments are to be paid at two and a half percent of the total pay in the pay band and applicable grade pay.

4. Annual increments are normally given as on the 1st of July of a year.

5. There is a variable pay that is payable to Government employees, though this concept has just been started. The bell curve applies even with Government employees. 80% of the employees are to be given 2.5% increment with the high performers (whose numbers should not exceed 20% of the employees in the department) can be allowed an higher increment of 3.5%.

Illustratively, the salary of an Addl. Secretary in the Government of India (level S – 32) earlier was represented as 24,050 – 650 – 26,000 meaning thereby that there would be 3 annual increments of Rs. 650/= each till the ceiling of the scale was reached.

This has now been changed to Pay Band PB – 4 and the salary is represented as 39,200 – 67,000 and a Grade Pay of Rs. 13,000/=. The annual increment at the base level of this Pay Band would vary between a low of Rs. 1,305/= and Rs. Rs. 1,827/=.

There is more flexibility and hence less structure in the private sector. Further the pay bands and policies for increments vary from company to company.

Regards

R Bhatnagar

Dear friends,

Most of the organisations who follow govt.type of Pay scales have this type of Basic Pay. As per your example Rs.5000-500-20500 which means on joining the employee's basic pay will be fixed @ Rs.5,000 and he/she will granted annual increment Rs.500 every year and thus till reaching the basic pay of Rs.20,500 (i.e. for 20500 - 5000=15500/500=31 years unless and until this scale gets revised or refixed on promotion to a higher scale. So further to explain this -

Date of joining: 18.7.13: Basic Pay Rs.5,000 + DA + other DAs (Say Rs.4000) and various other allowances(say All 2500) = Total Emoluments or Gross = Rs.11,500/=

From 18.7.2014 - (Basic pay 5000 + one Annual increment having completed one year of service @ Rs.500/-) = Basic pay Rs.5,500/= plus DA + allowances. Like this it will continue. This Scale of Pay will vary from post to post or cadre to cadre and so applicable DA and other allowances also will vary. It may be possible to indicate diff.amount of increment in the same scale.For example - Rs.5,000-500-10,000-1000-21000, in this after reaching the BP of Rs.10000 from the next year the annual increment will be @ Rs.1,000 instead of Rs.500.

I am not denying what Mr. Kumar has said, but what I have heard is say in your case of 5000-500-20500 is Basic 5000 DA 500 Total Emoluments 20500
Govt. Job salary is always on Total Emoluments which is Gross Salary, CTC concept is of Pvt.
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