Monday, 18 May 2015

Increment issues – Why is Annual Increment denied to employees retiring in June?

Increment issues – Why is Annual Increment denied to employees retiring in June?

Why is Annual Increment denied to employees retiring in June?

Until 01.01.2006, the date of implementing employee’s annual increment was fixed on the basis of his/her date of appointment or promotion option. After the 6th CPC, it was decided that 1st July of each year would be the uniform date of implementation of annual increment for all Central Government employees.

Employees who are appointed after January 1st are not eligible for that year’s annual increment on July 1. They qualify for annual increment only the next year.

The revised pay rules said that “If an employee is on leave or is availing joining time on the 1st of July, the benefit of annual increment in pay will be drawn only from the date on which he resumes duty and not from the first of July. Each year, employees who retire in the month of June are not given the annual increment of the year since they do not report to work on 1st July. Only those employees who resume duty on July 1st are eligible to receive the annual increment. Or, the day they report back to work is taken as the date for implementing the annual increment. Since there are no possibilities for the retired employees to return to work, they are not considered as qualified to receive the annual increment.

The revised pay rules states that only those who have been receiving the same basic pay continuously for 6 months are considered as qualified for annual increment. According to the another rule of qualification for increment, the person should have complete one year in service after receiving the annual increment. Therefore, despite being qualified, these employees are denied their annual increment.

There is an order that states that those who retire on July 1st should complete the retirement formalities in the month of June.

Instead of strictly looking into such technicalities, it would be a nice gesture on the part of the Government to extend the benefits of annual increment to those senior employees too who retire from service in the month of June.



6th CPC has the honour of introducing a number of new changes.
Some of the most important changes introduced by the 6th CPC are GRADE PAY STRUCTURE, 3% INCREMENT, CHILDREN’S EDUCATION ALLOWANCE, and announcing July 1 as INCREMENT DAY FOR ALL. In addition, it also created new regulations to avoid smaller calculations – the method of “ROUNDED OFF TO THE NEXT MULTIPLE OF TEN.”

Even as the 7th CPC is fast approaching, doubts about the Increment Calculation on the basis of the 6th CPC persists, especially about the “ROUNDED OFF TO THE NEXT MULTIPLE OF TEN” method. It is obvious that doubts persist.

In order to avoid decimals, it is a usual practice to round off anything over 50 as 1, and less than 50 as 0. But, according to the Revised Pay Rules 2008 of the 6th CPC, 100.90 is to be taken as 101, and, 101 is to be rounded off as 110.

Let us assume that a person’s increment calculation results in 510.90. That has to be taken as 510. But, if the number is 511, then it has to be taken as 520.

Let us get to the interesting part of this concept:
For those with Band Pay higher than 7440, there are chances that Transport Allowance would rise from Rs. 400 to 800 or from Rs. 600 to 1600. There are possibilities that even 10 Paise could make a big impact.

The difference between Rs. 7430 and Rs. 7440 is huge..!

Many would have found themselves in critical junctures where these small differences would result in differences of Rs. 1000 per month, adding up to Rs. 12000 per year. That could be one of the reasons why some employees are upset with these calculations. The ones who had to lose due to these calculations will remember it for a very long time.

In the beginning of 2009, a few departments didn’t understand these calculations properly. They went about rounding off 50 Paise as Re. 1 and calculated increments on that basis.

Even when 6th CPC tried to remove the impact of Paise in the calculations, it somehow continues to have an effect!


Pay Fixation on MACP as per 6th Pay Commission – Some Illustrations

Pay Fixation on MACP as per 6th Pay Commission – Some Illustrations

Modified Assured Career Progression Scheme (MACPS)

MACP clarifications is given with useful illustrations for Defence Civilian Employees. This type of explanations is very useful to know and clarify the doubts of the new scheme. Wittingly to clear in the particular subject, because it is connecting with lifetime promotion of every employee.

This scheme for career upgradations to Central Government employees was introduced with effect from 1-09-2008 with introduction of revised pay rules 2008.

This scheme has replaced earlier scheme of Assured Career Progression Scheme of August 1999.
Under this scheme, an employee would get at least three career upgradations during his entire service on completion of 10,20 and 30 years of service.

Under this scheme an employee would be placed in next higher grade pay on completion of 10 years in previous grade and in case of no promotion has been offered to him.

a. Illustrations of Grant of MACP – Illustration – 1
In case of recruitment of an individual in Grade Pay (GP) of Rs.4200 with no promotion for 10 years,
1st financial upgradation after 10 years with GP-Rs.4600;
2nd financial upgradation after (10+10) 20 years with GP- Rs.4800;
3rd financial upgradation after (10+10+10) 30 years with GP- Rs.5400.

Illustration – 2
In case of recruitment of an individual in Grade Pay (GP) of Rs.4200 with first promotion after 5 years with GP of Rs. 4600,

The promotion will be considered as 1st financial upgradation;
2nd financial Up gradation after (5+10) 15 years with GP-Rs.4800;
3rd financial up-gradation after (5+10+10) 25 years with GP-Rs.5400.

Illustration – 3
In case of recruitment of an individual in Grade Pay (GP) of Rs.4200 with 1st promotion in 5 years with GP-Rs.4600 and 2nd promotion after 8 years,(5+8=13 years) with GP of Rs.4800,
He will get only 3rd financial up-gradation after (5+8+10) 23 years with GP-Rs.5400.

b. Norms for grant of MACP
The financial up gradation would be on non-functional basis subject to fitness in the hierarchy of pay band and grade pay.

The only benchmark of “Good” would be applicable till the grade pay of Rs.6600 in PB-3.
The benchmark will be “Very Good” for financial upgradation to the grade pay of Rs.7600 and above.
However, if the financial upgradation under the MACPS also happen to be in the promotional grade and benchmark for promotion is lower than the benchmark for granting the benefits under MACPS as mentioned in Para 17 of the scheme, the benchmark for promotion shall apply to MACP also.

c. Clarifications on MACP

If the promotional hierarchy as per recruitment rules is such that promotions are earned in the same grade pay, then the same shall be counted for the purposes of MACP.

Only the continuous regular service is counted towards qualifying service and the regular service shall commence from the date of joining in direct entry grade on the MACP envisages merely placement in the immediate next higher grade pay as given in Section1, Part A of first schedule of the CCS (Revised Pay) Rules 2008.

Financial upgradation will also be admissible whenever a person has spent 10 years in the same grade pay.
Only regular service rendered in the Central Government Department/Office would be counted for the purposes of grant of MACP.

All tenures spent on deputation, Foreign Service, study leave, all kind of leave, shall be included in the regular service.

d. The benefits of MACP are admissible upto HAG scale of Rs. 67000-79000.
All cases of grant of promotions/ACPs under pre-revised pay scales of Rs. 5000-8000, Rs. 5500-9000, Rs. 6500-10500 and Rs. 7400-11500 and if those merged w.e.f. 1-1-2006 would be ignored for purpose of grant of financial upgradation under the scheme.


National Anomaly Committee Meeting will be held on 29.5.2015 – Agenda Points

National Anomaly Committee Meeting will be held on 29.5.2015 – Agenda Points

NFIR published the order issued by the DoPT to convene a meeting of National Anomaly Committee on 29th May 2015 and also attached agenda points…

Government India
Ministry of Personnel, PG & Pensions
Department of Personnel & Training
North Block, New Delhi
Dated: 12th May, 2015

Subject: Meeting of the National Anomaly Committee – 29th May, 2015 at 3.00 P.M.
The undersigned is directed to say that a meeting to discuss the items which were discussed in the last National Anomaly Committee Meeting held on

17.07.2012 and required separate examination (as annexed) is scheduled to be held under the Chairpersonship of Joint Secretary (E) on 29th May, 2015 at 15.00 Hrs in Room No.119, North Block, New Delhi.

2. It is requested to kindly make it convenient to attend the meeting.
(A.Asholi Chalai)
Tel/Fax: 011-23094906

1. Secretary, Staff Side Council (JCM), 13-C, Ferozeshah Road, New Delhi
2. General Secretary, AIRF, 4 State Entry Road, New Delhi.
3. General Secretary, NFIR, 3, Chemsford Road. New Delhi.


Review of MACP to Grade pay of Rs. 2000/- where there is no such grade
pay in Railway.

ITEM No. 2
Additional Pay to Loco & Traffic running Staff.

ITEM No. 3
Treatment of employees selected under LDCE SCheme / GDCE Scheme

ITEM No. 4.
Grant of minimum entry pay meant direct recruit to promotes.

Source: NFIR

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