Pay Fixation

N V RAMANA RAO
Senior Accounts Officer(Retired)
% Pay & Accounts Officer
CGST & CUSTOMS
Hyderabad
 Pay scales in different pay
commissions
Illustration of scales
• 4th 1200-30-1440-30-1800 1200-30-1560-40-
2040 1320-30-1560-40-2040
• 5th 4000-100-6000
• 6th 5200-20200 Grade pay 2400 Increment 3%
• 7th Level-4 Minimum Pay Rs.25500
 INCREMENTS
An increment in the time scale of pay will be
drawn as a matter of course, unless it is
withheld under the orders of competent
Authority (FR 24)
Increments in Pay Matrix
The increment shall be as specified in the
vertical cell of the applicable Level in the Pay
Matrix
 Regulation of Increment
(FR 26)
Periods counting for increment
• All duty period
• All leave except EOL without MC
• Joining Time
• Foreign service
• Training undergone before formally taking over
charge of the post
• Government servant , who has completed six
months service including training period as on 1st
July, will be eligible for increment
Period not counting for increments
• EOL without MC
• Overstayal of leave unless regularized by grant
of leave
• Dies non period
• Period of suspension unless subsequently
regularized by leave or treated as duty
 INCREMENT DATE
• 7th CPC recommended two dates (1st January
and 1st July of every year) for granting
increment to all CG Employees with effect
from 1.1.2016. Provided that an employee
shall be entitled to only one annual increment
either on 1st January or 1st July depending on
the date of his appointment, promotion, or
grant of financial upgradation.
 Annual Increment Rules
• The increment in respect of an employee appointed or
promoted or granted financial upgradation including
upgradation under Modified Assured Career
Progression Scheme (MACPS) during the
period between the 2nd day of January and 1st day of
July (both inclusive) shall be granted on 1st day of
January
• The increment in respect of an employee appointed or
promoted or granted financial upgradation
including upgradation under MACPS during the period
between the 2nd day of July and 1st day of January
(both inclusive) shall be granted on 1st day of July.
Annual Increment
 FIXATION OF UNDER FR 22
• First appointment to Government service in a
post.
• Promotion or appointment to a post involving
higher responsibilities.
• Transfer or appointment to a post not
involving higher responsibilities.
• Deputation
 First appointment to Government
service
• The pay of Government servant on his first
appointment to Government Service will be
fixed at the minimum pay corresponding to
the Level to which recruitment is made, which
will be the first cell of each level.
 Pay Fixation Options
There are two options:
• Fixation from the date of promotion
• Fixation from the date of next increment FR
22(1)(a)(1)
• The option should be exercised by the
Government servant within one month from the
date of promotion
• This option is not available in the cases of
appointment on deputation to an ex cadre post,
or to a post on ad hoc basis or on direct
recruitment basis
Method of fixation of pay from DNI
• consequent upon his/her promotion, the
Government Servant opts to have his/her pay
fixed from the date of his/her next increment
(either 1st July or 1st January, as the case may
be) in the Level of the post from which
Government Servant is promoted, then, from
the date of promotion till his/her DNI, the
Government Servant shall be placed at the
next higher cell in the level of the post to
which he/she is promoted.
Illustration
 Re-Fixation
• on DNI in the level of the post to which
Government Servant is promoted, his//her Pay
will be re-fixed and two increments (one accrued
on account of annual increment and the second
accrued on account of promotion) may be
granted in the Level from which the Government
Servant is promoted and he/she shall be placed,
at a Cell equal to the figure so arrived, in the
Level of the post to which he/she is promoted;
and if no such Cell is available in the Level to
which he/she is promoted, he/she shall be placed
at the next higher Cell in that Level.
Illustration
 Date of Next Increment in Six Months
on Promotion or MACP
• The Finance Ministry has issued a significant order on the Date of
Next Increment (DNI) that pertains to promotion or financial up-
gradation, which was released on the 1st of July 2019 [O.M. No.4-
21/2017-IC/E.IIIA dated 29.10.2019].
• The order has provided clarity on the accrual of subsequent
increments for employees who receive a promotion or financial up-
gradation on the 1st of July, and benefit from two increments, i.e.,
the first annual increment due on 1st July and the second notional
increment on account of promotion.
• As per the order, if an employee receives a promotion or MACP on
the increment date of 1st July 2019, their pay will be fixed on 1st
July 2019, and the subsequent increment will accrue on 1st
January 2020, after completion of six months of service.
Thereafter, the next increment will be eligible only after completion
of one year on 1st January 2021.
 Appointment to a post not involving
higher responsibilities FR 22(1)(a)(2)
• Promotion is to a post in the same level, no
fixation of pay is involved
• Draw as initial pay, the stage of the time scale
which is equal to his pay in respect of the old
post held by him on regular basis.
• If there is no such stage , the stage next above
his pay in respect of the old post held by him
 Appointment to/from ex cadre posts
• FR 22 (1)(a) Sub clauses (1) and (2) are
applicable in the case of appointments to ex
cadre posts.
• If the cadre pay plus Deputation Allowance is
drawn the above rule does not arise
• Option benefit not admissible
 When the scale of pay is changed
• If the scale of pay is revised upwards without
any change in the duties and responsibilities ,
• Fixation of pay in the revised scale will be FR
22 (1) (a)(2)
 Regulation of pay on imposition of a
penalty under CCS(CCA) Rules,1965
• PENALITIES- MINOR
1. Withholding of Increment
2. Reduction to Lower one stage for not
exceeding three years , without cumulative
effect
• MAJOR
1. Reduction to Lower stage for specified
period and further directions
Withholding of Increment
if one increment is withheld for a six-month period
starting in October 2017, the withholding of the
increment will be omitted.
When the date of increment is 1st January
1. The increment falling due on 01.01.2018 will be withheld
for a period of next six months, that is, till 30.06.2018.
2. The increment would be released on 01.07.2018 without
arrear.
When the date of increment is on 1st July

1. The increment falling due on 01.07.2018 will be withheld for a

period of next six months, that is, till 31.12.2018.
2. The increment would be released on 01.01.2019 without
arrears.
• ** In the above illustration, a penalty of
reduction by more than two stages would fall
below the first cell of the same Level, such a
penalty therefore, would not be implementable.
• Therefore, while imposing the penalty of
reduction to a lower stage in time-scale of pay
under Rule 11 (v) of the CCS (CCA) Rules, 1965,
• Disciplinary Authority may weigh all factors
before deciding upon the quantum of penalty,
• i.e. the number of stages by which the pay is to
be reduced.
 Withholding of increment
[Penalty under Rule 11(iv)
• The penalty of withholding of one increment
for a period of two years is imposed on a
Government servant on 13.08.2017. The
Government servant is drawing Rs. 50500 in
Level 7 of Pay Matrix. Pay would be fixed on
the following manner.
 Reduction to a lower stage
[penalty under Rule 11 (iii a)]
• The penalty of reduction to a lower stage in
the time-scale of pay by one stage for a period
of one year, without cumulative effect and
not adversely affecting his pension is imposed
on a Government servant w.e.f. 13.08.2017.
The Government servant is drawing Rs. 50500
in Level 7 of Pay Matrix. Pay would be fixed on
following manner:
 Reduction to a lower stage with cumulative effect
[penalty under Rule 11(v)]

• The penalty of reduction to a lower stage by two

stages in the time-scale of pay for a period of one
year is imposed on a Government servant w.e.f.
13.08.2017.
• It is further directed that the Government servant
would not earn increment during the period and
• the reduction will have the effect of postponing
future increments of pay.
• The Government servant is drawing Rs. 50500 in
Level 7 of Pay Matrix. Pay would be fixed on
following manner:
Thank You