APPENDIX VIII

[See Chapter VII, paragraph 129, note I]

Formulae for the calculation of the average cost of time-scale of pay

The following formulae may be used for the calculation of the average cost of time-scale of pay:—Formula (1) is to be used in the case of gazetted appointments and formula (2) in the case of non-gazetted posts. In the cases where one grade is the channel of promotion to another grade, that is to say, where everybody in the first grade is ultimately promoted to the second grade, formula (3) may be adopted to find the average cost of appointments in the first grade. The use of formula (4) should be restricted to cases involving an elaborate scale, consisting of two or more sections with efficiency bars at one or more stages.

FORMULA (1)

Average pay = A+B/2+(B—A)/2[1—(R+1) {.014+(1—.01 R)/F—E }]

FORMULA (2)

Average pay = A+B/2+(B—A)/2[1—(R+1) {.021+(1—.01 R)/F—E }]

In the formulae (1) and (2)—

A = minimum pay,

B = maximum pay,

R = period of rise,

E = average age at entry in the grade, and

F = average age at retirement on superanuation pension.

This may be taken to be 58 in almost every case, unless there are special reasons to take it either at a lower or a higher figure.

FORMULA (3)

Average pay = (A+C)/2+(C—A)/2[1—(S+1) {.006+ (1—.0048)/G-E}]

In formula (3)—

A = minimum pay,

C = pay just before promotion to the second,

S = Period of rise from A to C,

E = average age at entry in the first grade, and

G = average age at the time of promotion to the second grade.

NOTE—In order to find the average cost of an appointment in the junior scale of an All-India Service, this formula should be used and that such proportion of overseas pay should be added to the minimum basic pay, as well as to the basic pay just before promotion to the senior scale, as the number of persons drawing overseas pay in the junior scale bears to the total number of persons in that scale.

FORMULA (4)

Average pay = (A+W1B1+W2B2+X1C1+X2C2).

Where

A = the initial pay of the scale.

B1B2 = the maximum pay of the different sections of the scale, such as the ordinary scale, the scale for passed clerks.

W1W2 = the proportion of the establishment which would normally reach the maximum of B2 respectively.

C1C2 = the pay at the different efficiency bars, and

X1, X2 = the proportion of the establishment which would normally be detained at C1, respectively.

back2_b.gif (10045 bytes) home4_b.gif (7945 bytes)