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04-12-2008, 06:42 PM
what is the difference between grade pay and pay band

04-12-2008, 07:06 PM
what is the difference between grade pay and pay band

Grade Pay is the fixed amount corresponding to the pre-revised pay scales/posts.

Pay Band is the running pay band specified in Column 5 of the First Schedule
of the Ministry of Finance (Dept. of Expenditure) Notification dated 29.8.2008.

The pay drawn in the aforesaid Running Pay Bands and the Grade Pay as applicable comprise of your Basic Pay in the Revised Structure.

While Pay Bands are only 4, viz. PB-1, PB-2, PB-3 and PB-4, there are varying grade pays even within a particular Pay Band.

On promotion from one grade pay to another, on the date of promotion, the higher grade pay will be allowed. At the same time, depending on the option exercised, increment @ 3% on the existing pay in the pay band + Grade Pay (existing) will be added to the existing pay either on the date of promotion or from the date of next increment as the case may be.

Where change in pay band also is involved in the aforesaid promotion,
the pay in the pay band after adding the aforesaid increment if less than
the minimum of higher pay band, then the pay will be stepped upto such minimum.

In respect of the above para, there is still ambiguity exists as to whether it is minimum pay of the higher pay band or minimum of the pay band, particularly
because, pay in the pay band means pay drawn in the running pay bands.

I myself also still working out to ascertain how many grade pays are there where change in pay band also will be involved for which purpose only
the aforesaid special clause is prescribed.

Best regards.

04-12-2008, 10:42 PM
Dear gaveston

1) Grade Pay is fixed by the pay commission on the basis of 40% of maximum of a particular pay scales and will remain fixed till you are in the same pay scale. It has been done to give the weightage of 40% fitment as was done in 5th pay commission but the format has been changed this time. This is the actual increase in one's pay. Where two or more scales has been merged such as Rs.5000, Rs.5500 and Rs6500 scale, maximum of highest scale, in this case 10500/(maximum of 6500 scale ) was taken to calculate the grade pay. Though this was formed the base for determining the grade pay of a particular pay scale, government, later on revised some of the grade pay on demand of various sectors at the time of finally accepting the report.

2) Pay Band are prescribed with a view that it can remain intact during the entire service of an employee who had not been promoted due to any reasons. In this case, there will be no stagnation. Idea was come in to way to avoid stagnation level in various pre revised pay scales. The method is also clear. The minimum of a particular pay scale multiplied by 1.86, formed the minimum of pay band.


06-12-2008, 01:57 AM
Dear Sirs,

An apt definition in clear terms by Shri Jji. The points are
elaborated accurately. Thanks.

Best Regards.