Clarification on pay fixation after 7th CPC-The ifs and buts

Clarification on pay fixation after 7th CPC-The ifs and buts

Dear viewers,

 Again this article is about the fixation of pay after 7th CPC, especially about those officials who have got their MACP from GP 2800 to 4200. I have posted a few articles in POTOOLS on this subject. I think one more article is needed at this point of time. 

 The problem is in the switching over to the revised pay structure. The following rules from CCS (RP) Rules 2016 govern the switching over to new scales of pay. 

Rule 5.

Drawal of pay in the revised pay structure: Save as otherwise provided in these rules, a Government servant shall draw pay in the Level in the revised pay structure applicable to the post to which he is appointed. 

Proviso 1:

Provided that a Government servant may elect to continue to draw pay in the existing pay structure until the date on which he earns his next or any subsequent increment in the existing pay structure or until he vacates his post or ceases to draw pay in the existing pay structure. 

                The pay structure stated in the above proviso means the pay structure introduced by the 6th CPC, i.e. pay and grade pay structure. As per the above proviso, a Government servant may continue to draw pay in the 6thCPC scale till his next or subsequent increments. i.e. on 1.7.16, 1.7.17 etc. In this connection the definition for existing pay structure as prescribed under Rule 3 (iv) is reproduced below for ready reference.

Rule 3 (iv) “existing pay structure” in relation to a government servant means the present system of pay band and grade pay or the pay scale applicable to the post held by the government servant as on the date immediately before the coming into force of these rules, whether in a substantive or officiating capacity. 

Proviso 2:

Provided further that in cases where a government servant has been placed in a higher grade pay or scale between 1 st day of January, 2016 and the date of notification of these rules on account of promotion or upgradation, the government servant may elect to switch over to the revised pay structure from the date of such promotion or upgradation, as the case may be.

                As per the above proviso, a government servant who is awarded MACP II between 1.1.2016 and the date of notification viz. 25.7.2016, may elect to switch over to the revised pay structure from the date of such promotion or upgradation. It is very important that this is not mandatory for the government servant to switch over to the revised pay structure on the date of promotion itself. This is because, it is mentioned that the government servant MAY switch over. The intention of this proviso is that, a government servant who is awarded promotion after the cut off date 25.7.2016 cannot switch over to the revised pay from the date of promotion. Alternatively, he can continue to draw pay in the existing pay structure until the date of subsequent increments, 1.7.17, 1.7.18 as per proviso 1. In other words, for this government servant, there is no option to switch over to the revised pay structure from the date of promotion, if it is after 25.7.2016. Proviso 2 is to be treated as a special case of proviso 1.

                The content of the above provisions may be summarized as follows.

1. A government servant can switch over to the revised pay structure from 1.1.2016 and this is applicable to all.
2. A government servant can continue in the pre-revised pay till his DNI or subsequent increments and can switch over to the revised pay structure on that date of next or subsequent increments. This provision is also applicable to all.
3. The government servants who is promoted or awarded financial upgradation between 1.1.2016 and 25.7.2016 has one more option. That is the government servant can switch over to the revised pay structure from the date of such promotion/upgradation. This option is not applicable for the government servant promoted or awarded financial upgradation after 25.7.2016. They can switch over only on their subsequent increments. In other words, proviso 2 is applicable only in these cases and it is optional but not mandatory.

I hope that upto this point there is no confusion any way. There is confusion in the switching over after getting the promotion/upgradation. This is due to the following explanation below Rule 5 of RP rules 2016. The Explanation is reproduced for ready reference.

Explanation 1: The option to retain the existing pay structure under the provisos to this rule shall be admissible only in respect of one existing pay band and grade pay or scale.

I wish to state that every promotion/upgradation has two aspects. One is date of promotion and the other is the date of fixation of pay for his promotion/upgradation.

Consider the following case for our discussion.

              A government servant drawing Rs.16750 (13950+2800GP) as on 1.1.2016 in the pre revised pay. The official is granted MACP to the GP of 4200 with effect from 1.3.2016.

              Since the promotion is between 1.1.2016 and 25.7.2016, the official can exercise any one of the above 3 options. It is very important that the official may switch over to revised pay structure on the date of promotion 1.3.2016, and it is not mandatory.

Option 1: The official elects to switch over to revised pay from 1.1.2016.

              There is no dispute if the official elects to switch over to the revised pay structure from 1.1.2016 and in this case his pay will be fixed in the revised pay structure on 1.1.2016 and the subsequent fixation for his MACP will be government by the RP rules 2016. The pay will be regularized as follows. The official opted for fixation for promotion on his DNI i.e. 1.7.2016.

Period	Pay	Remarks
1.1.2016	13950+2800=16750	Pre revised pay
1.1.2016	44100	Revised pay
1.3.2016	44900	Option for fixation on DNI. Immediate higher stage in the next higher level.
1.7.16	47600	Promotion fixation. DNI 1.1.2017.

              If the official opts for fixation for promotion on the date of promotion itself 1.3.2016, the pay will be regulated as follows.

Period	Pay	Remarks
1.1.2016	13950+2800=16750	Pre revised pay
1.1.2016	44100	Revised pay
1.3.2016	46200	Promotion fixation. DNI 1.1.17
1.1.2017	47600	The official completes 6 months only on 1.1.2017 after promotion

Option 2: The official elects to switch over from date of promotion 1.3.2016 under proviso 2 above

              In this case the official will continue to draw 13950+2800 till 1.3.2016, his pay should be fixed as per 6thCPC formula on 1.3.2016 and his revised pay should be fixed in the revised pay structure on 1.3.2016. This is absolutely correct. It may be noted that, the official retains only one pay band and one grade pay which he was in receipt on 1.1.2016. This is in conformity with the explanation 1 mentioned above. The date of next increment will be 1.1.2017, since the official completes the minimum of 6 months service in the revised pay structure only on 1.1.2017.

              As per proviso 2 above, this fixation is absolutely admissible. I came to understand that in some cases, the officials were asked to come over to the revised pay structure w.e.f. 1.1.2016 itself and to get their fixation benefit on their promotion as per the 7th CPC fixation formula. This is totally wrong as this prevents the government from exercising his right as guaranteed by the proviso 2 above.

              The pay will be regulated as follows in this case. 

Period	Pay	Remarks
1.1.2016	13950+2800=16750	Pre revised pay
1.3.2016	14460+4200	Pre revised pay after fixation.
1.3.2016	49000	DNI 1.1.2017
1.1.2017	50500	Official completes 6 months.

Option 3: The official elects to switch over to revised pay structure from his DNI as per provision First we will see how the pay is to be fixed and then we will see that how this is justified. In this case, the official will continue to draw pay in the pre revised pay upto 1.7.2016. It may be noted that till his switching over to revised pay structure, the official continues to draw pay in the existing pay structure, as per proviso 1 above. That is he continues the pay band and grade pay system. From 1.3.2016 to 30.6.2016, the official will be paid Rs.13950+4200, since the difference in grade pay only will be paid between the date of promotion and the DNI, as per 6th CPC formula. On 1.7.2016, the pay of the official will be brought back to Rs. 13950+2800 and he will be provided 2 increments, one annual increment and another one for his promotion and grade pay Rs. 4200. Then his pay will be fixed in the revised pay structure w.e.f. 1.7.2016, with reference to his pay after promotion in the pre revised pay scale. The official will get his first increment after promotion on 1.1.2017, as per orders dated 31.7.2018, since he has completed the minimum of 6 months of service on 1.1.2017. The official should not have any non-qualifying service between 1.7.16 to 31.12.2016. If he has any such service, his DNI would be 1.7.2017, as he has not completed 6 months service on 1.1.2017.

The pay of the official will be regulated as follows.

Period	Pay	Remarks
1.1.2016	13950+2800=16750	Pre revised pay
1.3.2016 to 30.6.2016	13950+4200	Difference in GP only will be paid.
1.7.2016	14980+4200	Pay fixation on promotion in pre revised pay
1.7.16	50500	Revised pay. DNI 1.1.2017
1.1.2017	52000	First increment after promotion

There are so many confusions in the above case. I came to understand that audit has objected such fixation in a few cases and approved some cases. I do not know the details. If somebody has details, let me know for further action.

The reasons stated are listed as follows.

1. As per explanation 1 above, the official can retain only one pay band and one grade pay. In the present case, it is stated that the official retains two grade pays, Rs. 2800 upto 1.3.2016 and Rs. 4200 from 1.3.16 to 30.6.2016 and as such, switching over to revised pay structure on 1.7.2016 is not permissible.
2. In support of the above, one communication from Ministry of Finance, Department of Expenditure (E.III.A branch) dated 14.9.2017, with reference to Notes in Ministry of Defence File no. 1333/C/2017 is cited as a reference. Para 2 of the communication is reproduced for ready reference.

The case is regarding the fixation of pay of a government servant whose particulars are given below.
Sri.VinodAnand, IDAS (Retired) was promoted from JTS to STS with effect from 3.6.2016. His pay was fixed on his promotion as under.

As on	Pay in 6th CPC (PB-3 & GP 5400)	Pay in the 7thCPC(in pay matrix level 10&11)	Remarks
1.1.2016	Rs.30190+5400	Rs.92700	Promoted from JTS to STS w.e.f. 3.6.2016 and opted for fixation on accrual of next increment w.e.f. 1.7.2016
3.6.2016	------	Rs.92700
1.7.2016	------	Rs.99500

However, Sri.VinodAnand, has submitted that his pay should be fixed as per the clarification of MoD(Civ-I)

As on	Pay in 6th CPC (PB-3 & GP 5400)	Pay in the 7thCPC(in pay matrix level 10&11)	Remarks
1.1.2016	Rs.30190+5400	-------	Promoted from JTS to STS w.e.f. 3.6.2016 and opted for fixation on accrual of next increment w.e.f. 1.7.2016
3.6.2016	Rs.30190+5400	-------
1.7.2016	32360+6600	102500

Para 2 of the communication.

              The matter has been considered and it is informed that the option to switch over to the revised pay structure either on 1.1.2016 or from a later date thatn 1.1.2016 i.e. on the date of promotion or the date of next increment, is applicable under Rule 5 in case of post held on 1.1.2016. Thus, if the date of next increment on 1.7.2016 for a post held on 1.1.2016 falls after the date of promotion i.e.3.6.2016 in this case, then the date of next increment for the post held on 1.1.2016 has no relevance for option, as this post is no longer held on the date of increment. Thus, option cannot be exercised from 1.7.2016 to switch over to the revised pay structure. We will discuss this case at the end.

              Now we consider the case of MACP promotion under option 3.

                I submit that the audit objection is wrong.  The official retains only one scale and one grade pay viz. PB 5200-20200 and GP 2800 upto 30.6.2016. The official exercised option to retain the old scale upto his DNI and to switch over to the revised pay from 1.7.2016. The official was in PB 1 and the GP is Rs. 2800 on 1.1.2016. As per his option for promotion from DNI, the pay of the official on 1.3.2016 will be Rs. 13950+4200. This GP of Rs. 4200 is making the confusion as it seems to conflict with the Explanation 1. The details of the pay of the official as on 1.3.2016 would be Rs. 13950+2800+1400 (difference of grade pay). Kindly refer to the fixation formula of CCS (RP) Rules 2008. The same is reproduced for ready reference.

Rule 13 of CCS (RP) Rules 2008

(i)            One increment equal to 3% of the sum of the pay in the pay band and the existing grade pay will be computed and rounded off to the next multiple of 10. This will be added to the existing pay in the pay band. The grade pay corresponding to the promotion post will thereafter is granted in addition to this pay in the pay band.

                Also, for the period between the date of promotion and the DNI, only the difference of grade pay will be paid and on the DNI, the fixation will be done as per the above rule.

                In the light of the above, the above official on 1.3.2016 was in receipt of Rs. 13950+2800 only andRs. 1400 in an entirely different component paid for his promotion and it is not his grade pay. Actually, the GP is Rs. 2800 only. As per the fixation formula of 6th CPC cited above, the higher grade pay of Rs. 4200 corresponding to the promotion post (MACP II) will be paid only on the date of fixation for promotion. It may be noted that on 1.7.2016, his annual increment and also the increment for his promotion are fixed taking his GP as Rs. 2800 only and not Rs. 4200 (existing grade pay of Rs. 2800) in accordance with rule 13 of CCS (RP) Rules 2008. As per the proviso to CCS (RP) Rules 2016, the official is in PB I with grade pay of Rs. 2800 on 1.1.2016 as well as on 1.7.2016. As such, the option to switch over to revised pay structure is absolutely in accordance with the rules.

                It may be noted that as per the orders on MACPS, there is no change in the post, responsibility etc and the MACPS is just a financial upgradation. The official is to continue in the same post and to perform the same nature of duties. As such, there is no question of vacating his post, as mentioned in the proviso 1.

                In the light of the above, the switching over to the revised pay structure on the DNI, after exercising option for pay fixation for the MACP on his DNI is absolutely in accordance with orders on the subject. The official is eligible for this benefit.

                As already stated, if the official got his fixation on 1.3.2016 itself, his GP is changed to Rs. 4200 and hence he cannot opt to switch over on his DNI, since the GP of the official on 1.1.2016 was Rs. 2800 and on 1.3.2016 was Rs. 4200.

                There is no  reason to deny this benefit of fixation. The denial is not justified.  

                Incase of Sri. Vinoth Anand, I have no idea about promotions in the Ministry of Defence. The following can be said. If the promotion from JTS to STS is in the nature of in-situ or in the nature of MACP, the option exercised is right and this officer is eligible for switching over on 1.7.2016. On the other hand, if it is in the nature of promotion involving the change of post also, then as per proviso 1, the official is not eligible for such option. It is added that the pay of the official 3.6.2016 should be Rs. 30190+6600 under his option. Also in the fixation done, the official should have been granted next higher stage on his promoted scale for the period from 3.6.16 to 30.6.2016 under his option.

                Before I conclude, the proviso 1 vis-à-vis its applicability is reproduced below.

Proviso 1

Provided that a Government servant may elect to continue to draw pay in the existing pay structure until the date on which he earns his next or any subsequent increment in the existing pay structure or until he vacates his post or ceases to draw pay in the existing pay structure.

                In the case of officials who opt for switching over to the revised pay structure w.e.f. the DNI or any subsequent increments, opts for their pay fixation for MACP on their DNI, the provision is applicable since this case is exactly covered by the above proviso, as follows.

1. The government servant continues to draw pay in the existing pay structure on his DNI or subsequent increment.
2. He did not vacate his post, as the official continues in the same post, as per MACPS.
3. He did not cease to draw pay in the existing pay structure (6thCPC pay).

                For those government servants who are promoted after 25.7.2016, the officials can exercise option to continue in the pre revised scale upto their date of subsequent increments and to switch over to the revised pay structure from that date of increment. The above discussions in respect of the officials who are promoted between 1.1.2016 and 25.7.2016 are squarely applicable in these cases also. As already stated, these officials cannot switch over to the revised pay structure from their date of promotion.

                As per recent orders on the subject, the first increment after initial appointment or after promotion will be provided on the subsequent 1st January or 1st July provided the official has completed a period of 6 months of service.

                I request all the trade unions to take up this case at appropriate level for a clear orders on this subject, so that to make a full stop for this ongoing debate. As per the order dated 12.12.2018, all the officials are given one more chance to exercise an option in this regard. Since, the due date is fastly approaching and also such option involves repayment of arrears, an early clarification on this subject is the urgent need of the hour. I hope this will be done. 

Article by
R.Hariharakrishnan
Manager, PSD,
Tirunelveli 627002