Instructions

Study the information given below and answer the questions.

The following table contains the pre and post revision pay structure of a Government department

The revision has been done based on the following terms:
-In pre-revised pay scale, the basic pay is the sum of the minimum pay in the appropriate pay scale and the admissible increment. After revision, the basic pay is the sum of minimum pay in the appropriate pay scale and the respective grade pay and the admissible increments.
-Annual increment of 3% of the basic pay (on a compounded basic) is paid under the revised pay rules.
-Monthly Dearness Allowance (DA) is calculated as percentage of basic pay.
-In pre-revised pay scales, the increment was given after the completion of each year of service, but, after revision annual increments are given only in the month of July every year and there should be a gap of six months between the increments.
The employees who had joined the department in the month of September, October, November and December are given an increment at the time of revised pay fixation in September, 2008.
The revised pay is applicable from 1st September, 2008.

Question 28

Nitin joined the department on November 24, 2004 in the pay scale of Rs. 8,000-275-13,500, at the minimum pay. At the time of pay revision, due to some error, his pay was fixed at the base (minimum) of the corresponding revised pay scale. The loss in his total emoluments for September 2008, due to this error, will be:

Solution

The new basic pay would have been = $$(15600+5400)(1.03)^4=23636$$

Due to the error, the pay is = $$15600+5400=21000$$

DA + HRA = $$28\% + 30\% = 58\%$$ of the basic pay

Thus, total loss in pay = $$1.58\times (23636-21000)=4164$$

Hence, the answer is option C.


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