Fixation of Pay on Promotion: NCJCM Agenda Item No.4 to NAC

The Fundamental Rule 22 (I) (a) (i) is reproduced here under;

“When a Government Servant promoted / appointed to a higher post which involves assumption of duties and responsibilities of greater importance than those attached to such permanent post, he will draw as initial pay the stage of the time scale next above his substantive pay in respect of the old post”.

In the existing Pay Matrix the vertical stages are same in most of the Levels, such Level 2 & 3, 6 & 7, 7 & 8, and 6 & 8 etc. Because of this, if an employee is promoted under the regular promotion scheme or MACP his pay will be almost the same. This has happened only because Rule 13 of the revised Pay Rules, 2016 the fixation of pay on promotion is stipulated in the manner stated in para 1 above. In other words, the omission of the words at the stage next above the notional pay in FR was changed to a cell equal to the figure so arrived at.

The above stated stipulation imposes reduced / or no financial benefit to an employee on promotion. In many cases the benefit has now become equivalent to one annual increment. The clause in the exisiting FR subject to a minimum has also been omitted in the revised pay rules.
In the existing pay matrix, the stages are same in most of the levels such level 2 & 3, 6 & 7, 7 &8, 6 & 8 etc. In this situation, if an employee is promoted/upgrated under MACPS from one level to another level, his pay will be almost same as he may drew even without promotion.

For example, an employee (Senior Accountant) working in Level 6 (erstwhile GP 4200) and drawing pay of Rs 47600/- (Cell – II in Level 6) with effect from 01.07.2016 after annual increment, is granted MACPS to level 7 (erstwhile GP 4600) or promoted to the post of Asstt, Accounts Officer (AAO) to level 8 (erstwhile GP 4800) with effect from 01.04.2017, his pay will be fixed as under, as per Rule -13 of CCS (RP) Rules 2016 –

1. Basic Pay in the revived pay structure (Level -6) -47600
2. On upgradation under MACPS to Level -7 -49000
3. On promotion to higher level (AAO) Level -8 -49000
4. On drawing one increment (without promotion or MACPS) Level-6 -49000

It can be seen that there is no improvement on promotion/upgradation, which can never be the intention.

Necessary amendment in the Rule-13 that – “on promotion/upgradation of an employee, if the stage/cell on pay fixation is equal in the promoted/upgraded level, he shall be placed at the next higher cell/stage in the promoted scale (Level)’ – may be made.