Pay Fixation on Promotion: Options Under FR 22(1)(A)(1)
Under Rule FR 22(1)(A)(1), a promoted employee can choose the effective date for pay fixation to their advantage. The available options are:
- Option 1: Pay fixation from the date of grant of MACP/Promotion.
- Option 2: Pay fixation from the date of the next increment.
If a promoted employee does not submit an option within 30 days of the MACP/Promotion Order, Option 1 will automatically apply. Once submitted, the chosen option cannot be changed.
These options under FR-22 are available only for regular promotions, not ad-hoc promotions.
Option 1: Fixation from the Date of MACP/Promotion
- A notional increment (3%) will be added to the existing basic pay as of the date of MACP/Promotion in the current level.
- The employee will be placed in the cell in the MACP/Promotion level that corresponds to the resulting figure. If no such cell exists, the employee will be placed in the next higher cell of that level.
Option 2: Fixation from the Date of the Next Increment
- From the date of MACP/Promotion until the date of the next annual increment, the basic pay will be fixed in the next higher cell in the MACP/Promotion level. No 3% increment is applied at this stage.
- On the date of the next increment, the basic pay will be re-fixed by adding two increments (one for the annual increment and one for the MACP/Promotion) to the basic pay in the level from which the employee received the MACP/Promotion.
- The employee will then be placed in the cell in the MACP/Promotion level that corresponds to this newly calculated figure. If no such cell exists, the employee will be placed in the next higher cell of that level.
- The first increment in the MACP/Promotion level will accrue on the following 1st of July or 1st of January, as applicable, provided the employee has completed six months of qualifying service.
- Subsequent increments will accrue after the completion of one year.
Advantages and Disadvantages of Option 2
Option 2 is generally more beneficial, except in the following situations:
- The date of MACP/Promotion coincides with the date of the annual increment.
- The minimum basic pay of the MACP/Promotion level is higher than the existing basic pay plus two increments in the existing level.
- The date of retirement is prior to the date of the next increment.
Examples of Fixation of Pay in case of MACP/Block Failure
Example 1
- Employee gets Promotion/MACP on 12/05/21(Level 4 to Level 5)
- Present Basic Pay – ₹28700 (Level 4)
- Date of Next Increment is 1st July 2022
OPTION – 1
- 12/05/21 Basic Pay – ₹ 28700
- 12/05/21 Notional Increment Due to Promotion/MACP (in L4) – ₹ 29600
- 12/05/21 Pay Fixed in Level 5 – ₹ 30100 (as ₹ 29600 not available next higher amount)
- 01/01/2022 Next Increment (L 5) ₹ 31000
- Thereafter Date of further yearly Increments will be 1st January.
OPTION – 2
- 12/05/21 Basic Pay – ₹ 28700
- 12/05/21 Level Change (L4 to L5 -12/05/21 to 30/06/21) ₹ 29200 (as ₹ 28700 not available next higher amount)
- 01/07/21 Two Increments in L4 (Annual Increment & MACP/Promotion Increment) ₹30500
- 01/07/21 Pay Fixed in Level 5 – ₹ 31000 (as ₹ 30500 not available next higher amount)
- 01/01/2022 Next Increment (L 5) ₹ 31900
- Thereafter Date of further yearly Increments will be 1st January.
Example 2
- Employee gets Promotion/MACP on 12/08/21(Level 6 to Level 7)
- Present Basic Pay – ₹ 50500 (Level 6)
- Date of Next Increment is 1st July 2022
OPTION – 1
- 12/08/21 Basic Pay – ₹ 50500
- 12/08/21 Notional Increment Due to Promotion/MACP (in L6) – ₹ 52000
- 12/08/21 Pay Fixed in Level 7 – ₹ 52000
- 01/07/2022 Next Increment (L 5) ₹ 53600
- Thereafter Date of further yearly Increments will be 1st July.
OPTION – 2
- 12/08/21 Basic Pay – ₹ 50500
- 12/08/21 Level Change (L6 to L7 -12/08/21 to 30/06/22) ₹ 52000
- 01/07/22 Two Increments in L6 (Annual Increment & MACP/Promotion Increment) ₹53600
- 01/07/22 Pay Fixed in Level 7 – ₹ 53600
- 01/01/2023 Next Increment (L 7) ₹ 55200
- Thereafter Date of further yearly Increments will be 1st January.
Be First to Comment