This article is regarding the option for pay fixation on 7th CPC, after getting MACP. I came to understand that the audit has objected such switching over to revised pay structure with effect from the DNI. Let us see what the rule says.

First of all I wish to submit that MACP and promotion in the hierarchical ladder are entirely different things. The orders on MACPS clearly states that there is no change in post, responsibility and it is only a financial upgradation. For MACP, the official continues in the same post whatsoever. Also, if the official exercises option for pay fixation on his DNI, he can continue the same PB and the same GP upto his DNI, as required by these rules.

Audit has raised objections based on one ID number relates to MOD. A copy of one such objection is furnished below for ready reference. All other objections are also raised on similar grounds. 

“As per the M/o Finance, D/O Expenditure ID no 300346981 dated 14.9.2017 on the above subject, it is categorically stated that the option to switch over to the 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. 28.1.2016, 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 to the revised pay structure. “
As could be seen, the above objection is about fixation after promotion, and not for MACP.
As per rule 5, 6, provisos under these rules and also explanation 1 below these rules, the following conditions are necessary for option to switch over to new pay structure on DNI or on the date of subsequent increments.
  • The official should continue in the same post from 1.1.16 to the date of switching over to the revised pay structure.
  • The official should continue in the same pay band and same grade pay from 1.1.2016 to the date of switching over to the revised pay structure. (Should retain only one pay band and only one GP). In other words, on the DNI, the regular increment as well as the increment for promotion should be on the pay band and grade pay as on 1.1.2016.
The audit objection based on the MOD communication holds good in the following cases of promotions involving change of post or change of GP/scale, and not for MACP upgradations. For example, consider the following cases.

Case 1: A postman with GP 2000 is promoted as Postal Assistant, with GP 2400 on 1.3.2016
The official joins as PA on 1.3.16 and opts for fixation for his promotion on his DNI 1.7.16 and also for switching over to revised pay structure from 1.7.2016

The official is in PB 1 and GP 2000 on 1.1.2016. On 1.3.2016, due to exercising the option, he will be paid only the difference in GP 400 in addition to his pay (pay+GP 2000+diff in GP 400). The official continues in the same PB 1 and GP 2000 till 1.7.16, his DNI. On 1.7.2016, his regular increment and the increment on promotion will be calculated only on the pay on 1.1.2016 and GP 2000. Hence the official retains only one PB and only one GP 2000. Even then, he cannot exercise option for switching over on 1.7.2016, since the official was working as Postman on 1.1.2016 and as Postal assistant from 1.3.2016. Since a change of post is involved, this official cannot exercise this option. In this type of cases only, the above audit objection is correct. As per the communication cited by the audit, the post of postman which he was holding on 1.1.2016 has no relevance on 1.7.2016. The official can exercise option for any one of the following.

(i) To switch over to revised pay on 1.1.2016, and for his promotion on 1.3.2016, can have fixation either on the date of promotion 1.3.2016 or his DNI in the revised pay 1.7.2016.

(ii) The official can continue in the pre revised pay upto 1.3.2016 and after getting his pay fixed for his promotion, he can switch over to the revised pay w.e.f. 1.3.2016, with DNI 1.1.2017. (As the promotion takes place between 1.1.2016 and 25.7.2016 he can switch over on the date of promotion).

Case 2: A postman with GP 2000 is granted MACP to GP 2400 on 1.3.2016
The official exercises option for pay fixation on DNI 1.7.16 and also to switch over to the revised pay structure on 1.7.16.
In this case, the audit objection is wrong.
The official was working as Postman on 1.1.2016 and also on 1.7.2016, in the same post.
The official was in PB I with GP Rs. 2000 on 1.1.2016. Based on his option, the official will be paid the Pay as on 1.1.2016, GP 2000 and difference of GP Rs. 400 from 1.3.2016. The pay as on 1.3.2016 should be taken as Pay in the pay band+GP 2000+diff in grade pay Rs. 400 and not pay in the pay band+GP 2400. on 1.7.2016, one annual increment and one increment for his MACP will be paid only on the pay as on 1.1.2016 and GP 2000. Hence, the official retained only one PB and one GP as prescribed in the rules. In this case, the switching over to revised pay structure on 1.7.2016 is in order, as per rules on the subject.


Case 3: A postal assistant with GP 2400 is promoted to PM Gr I with GP 2800 on 1.3.2016.
In this case, there is a change in post involved. On 1.1.2016 he was working as PA and as PM Gr I from 1.3.2016. By exercising option for pay fixation on 1.7.16, the official can retain the same PB and GP upto 1.7.16. Even then, since there is change in post is involved, the official cannot exercise option to switch over to the revised pay structure on 1.7.2016.


Case 4: A postal assistant with GP 2400 is granted MACP to GP 2800 on 1.3.2016
In this case, if the official exercises option for pay fixation on DNI 1.7.16, he can switch over to revised pay structure on 1.7.16. The official continues in the same post of PA, and in the same PB I and GP 2400 till DNI.
If the official opts for pay fixation for MACP on his date of promotion, 1.3.2016, then the official after getting his fixation should switch over to the revised pay structure w.e.f.1.3.2016 itself with DNI 1.1.2017.

Case 5: Retaining more than one pay band, GP.
One PA with GP 2400 is awarded MACP with GP 2800 on 1.3.2016. The official exercises option for pay fixation on DNI 1.7.2016 and for switching over to revised pay structure w.e.f.1.7.2016. From 1.3.2016, pay in PB I, GP 2400 and difference in GP Rs.400 will be paid.
As things stand, the same official is promoted as AAO, with GP 4800 w.e.f. 1.5.2016. The official exercises option to pay fixation on DNI 1.7.2016 and also to switch over to revised pay structure on 1.7.2016.
In this case, the official is working as PA on 1.1.2016 in PB I with GP 2400. Consequent on the MACP also, the official continues in the same post, same PB and same GP. On promotion to AAO, there is a change in post.
In this case, the following options are available.
  1. The official can switch over to revised pay structure on 1.1.2016.
  2. The official can get his promotion for MACP on the date of promotion itself on 1.3.2016 and switch over to revised pay structure on that date itself 1.3.2016.
  3. For his promotion to AAO, he can exercise option for fixation on the date of promotion 1.5.2016 or on his DNI 1.1.2017.
For the period from the date of promotion and date of fixation on DNI, the official is paid only the EXISTING GRADE PAY, EXISTING GP and the difference in grade pay.

Consider an official drawing Rs. 13950, with GP 2800 on 1.1.2016. If he is awarded MACP to the GP of 4200 on 1.3.2016, and the official exercises option for pay fixation on his DNI, then the pay of the official from 1.3.2016 would be Rs.13950+2800+1400 and NOT 13950+4200. If LPC is to be issued to this official during this period, the pay will be mentioned as PB 1 with GP 2800. The difference in grade pay will be furnished separately. This makes the difference.

As per CCS (RP) Rules, 2008, for fixation on the date of promotion, the EXISTING PAY and EXISTING GP will be taken. Also, for the period between the date of promotion and DNI, the official will be paid the existing GP and the difference in grade pay and NOT the revised higher GP.
For the above discussion, the cases of promotion between 1.1.2016 and 30.6.2016 are considered. For those officials who got their promotion after 1.7.2016 and also after 25.7.2016, the same rules hold good. The only thing is those officials who have got their promotion after 25.7.2016 cannot switch over to revised pay from their date of promotion but from their DNI after the promotion date. (Subsequent increment). Also those officials should opt for fixation for promotion on their DNI and not from the date of promotion.

I hope this matter will be taken up by our service unions at appropriate level in order to clear the position early.

I hope this will be done.
Article by: R.Hariharakrishnan Manager, PSD, Tirunelveli 627002