Article on Option for Pay Fixation – Article dtd 14.01.2019

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This article is about the option for pay fixation consequent on the implementation of 7th CPC, especially for those who have got their MACP II in the department of posts. This is in continuation of my earlier article published on 31.12.2018.

Some of my friends state that the option to switching over to the 7th CPC from the DNI is not applicable for those officials who have got their MACP between 1.1.2016 and 25.7.2016. They cite one communication issued by Ministry of Finance, Department of Expenditure (E.III branch) in response to a query raised by Ministry of Defence through their note 1333/C/2017.

Their claim is that as per the above note, the official who was promoted on 3.6.2016 is not eligible for switching over to the new pay from 1.7.2017.

The content of the order is reproduced below for ready reference.

“2.The matter has been examined and it is informed that the option to switch over to revised pay structure either on 1.1.2016 or from a later date than 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 next increment. Thus, option cannot be exercised from 1.7.2016 to switch over the revised pay structure. “

It is to be noted that “promotion” and “fixation of pay for promotion” are two different aspects involved in any promotion. As per the proviso under FR 22 (I) (a) (i), the official can exercise option for his pay fixation on promotion either on his date of promotion or on the DNI. Every promotional order must contain a clause to this effect, as per the rules on the subject.

We consider the following example for our discussion.
One official is in receipt of pay Rs. 13690 and GP 2800 (total Rs.16490) on 1.1.2016. The official is offered MACP II to GP 4200 from 1.3.2016.

Case 1. The official opts for pay fixation on the date of promotion. i.e. on 1.3.2016.

In this case the pay of the official will be fixed as follows.
Existing pay on the date of promotion: Rs. 13690+2800=16490
One increment for MACP on 1.3.16 on Rs. 16490 which is Rs.500.
Pay after promotion in the pre revised pay is Rs. 14190
Higher grade pay Rs. 4200
Pre revised pay after promotion on 1.3.2016 –Rs. 14190+4200=18390

The pay of the official is now fixed in the GP 4200 on 1.3.2016. Now this official cannot opt for switch over to revised pay on his DNI i.e. 1.7.2016, since the pay drawn by the official on 1.1.2016 i.e. GP 2800 has no relevance for option. This official must switch over to revised pay w.e.f. 1.3.2016.
His revised pay will be fixed at 47600 with DNI 1.1.2017.

The above communication speaks about this case. The official was in receipt of GP 2800 on 1.1.2016 and the same has been changed to Rs. 4200 on 1.3.2016. He can opt for switching over to revised pay only for the scale he was drawing on 1.1.2016. In this case, on 1.3.2016, as he was not continuing the same pay which he was drawing on 1.1.2016, he is not eligible for option to switch over to new scales on 1.7.2016. Also, as per note 1 of CCS(RP) Rules 2016, the official can retain only one scale and one grade pay till his DNI for switching over to revised pay. In the instant case, the GP was Rs. 2800 on 1.1.2016 and 4200 on 1.3.2016 and as such the official, after getting his pay fixed for MACP on 1.3.2016 must switch over to the revised pay with effect from the date of promotion itself.

Case 2. The official opts for pay fixation on the DNI: i.e. on 1.7.2016.

In this case the pay of the official will be fixed as follows.
Existing pay as on the date of promotion i.e 1.3.16: Rs. 13690+2800=16490
As per the option, for the period from 1.3.2016 to 30.6.2016, the pay of the official would be Rs. 13690+4200, no fixation but only the difference of grade pay.
On 1.7.2016, his pay would be brought back to Rs.13690+2800=16490.
Now the official will be given two increments on 1.7.2016, one regular increment and one for his promotion. The pay would be Rs.14700 and he will be given the higher GP Rs. 4200. The pay of the official would be Rs.14722+4200=18900.
The official can switch over to revised pay w.e.f. 1.7.2016. His revised pay would be Rs.49000 with DNI 1.1.2017, since he would complete 6 months of service on 1.1.2017.
This fixation is absolutely in order as per CCS (RP) Rules 2018, considering the following facts.
a. The official was in the pay corresponds to GP 2800 on 1.1.2016. His fixation was done on 1.7.2016 based on this GP of Rs. 2800 and not on Rs. 4200. The date of promotion 1.3.2016 will be taken for consideration for his future promotions and CCS (RP) rules deals about the pay fixation.
b. The official retains only one scale and one GP of Rs. 2800 from 1.1.2016 to 30.6.2016. Even though the official is promoted on 1.3.2016 his pay is fixed only on 1.7.2016. For his pay fixation on 1.7.16, his GP Rs. 2800 as on 1.1.2016 only has been taken. As per pay rules, the increments are regulated with reference to the pay fixation and not based on the date of promotion.
c. Since the official continues the same pay which existed on 1.1.2016, the pay has relevance for his switching over to revised pay from 1.7.2016.
d. The date of promotion is 1.3.2016 but his pay fixation is done on his DNI 1.7.2016. The difference in grade pay was given for the period from 1.3.2016 to 30.6.2016 for his promotion as an interim arrangement. It may be noted that the pay of the official is brought back to the level which he was drawing on 1.1.2016, before fixation of pay for his promotion on 1.7.2016.
e. The official cannot be said to retain two scales or two grade pays. The fact is that the official holds only one pay and one grade pay which corresponds to the GP of Rs. 2800.
f. If the official dies between 1.3.16 and 30.6.2016, his pay will be taken as corresponding to GP 2800 only and not as Rs. 4200.
In the light of the above, the option to switch over to revised pay with effect from DNI is absolutely as per rules.

Case 3: If the same official is promoted as Inspector Posts on 1.5.2016.

For his MACP II on 1.3.2016 the can opt for pay fixation on his DNI 1.7.2016 and for switching over to revised pay from 1.7.2016. He is eligible for such fixation as per the above discussion.

On his promotion to IP on 1.5.2016, he may opt to pay fixation on DNI on 1.7.2016, but the earlier option on 1.3.2016 for his MACP will become void. In this case, the official must switch over to revised pay after fixation for MACP II on 1.3.2016. The pay on promotion will be fixed in the revised pay only on 1.5.2016. This official has another option, to get his pay fixed for his IP promotion in the revised pay on his DNI in the revised pay i.e. 1.1.2017.

I hope this case will be taken by our union at appropriate level for issue of necessary instructions to all concerned so that all chaos may come to an end.

Thank you.
Article by:
R.Hariharakrishnan
Manager, PSD,
Tirunelveli 627002

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