Friday, 8 December 2017

Denial of Pay fixation benefit on promotion - Article by Shri. Hariharakrishnan

Denial of Pay fixation benefit on promotion - Article by Shri. Hariharakrishnan

Denial of Pay fixation benefit on promotion


            This is regarding the fixation of pay on promotion. Consequent on the implementation of MACP scheme w.e.f. 1.9.2008, there are huge confusion in the fixation of pay. There are cases of denial of benefits on fixation and also some cases of recoveries consequent on the fixation. This is the analysis about the consequence of MACP on regular promotion and also fixation consequent on the recently introduced Cadre Restructuring.

The details regarding MACPS are contained in the Annexure I of Ministry of Personnel, Public Grievances and Pensions, Department of Personnel and Training no 35034/3/2008-Estt.(D) dated 19.5.2009. The following are the important points which are relevant to our discussion.
I.         About  MACPS

1.      MACPS ensures three financial upgradations counted from the direct entry grade on completion of 10, 20 and 30 years of service respectively. Financial upgradation under the scheme will be admissible whenever a person has spent 10 years continuously in the same grade pay. (para 1)
2.      Benefit of pay fixation available at the time of regular promotion shall also be allowed at the time of financial upgradation under the scheme. (The assured benefit is as that for a regular promotion. )There shall, however, be no further fixation of pay at the time of regular promotion if it is in the same grade pay as granted under MACPS. However, at the time of actual promotion if it happens to be in a post carrying higher grade pay than what is available under MACPS, no pay fixation would be available and only difference of grade pay would be made available. To illustrate, in case a government servant joins as a direct recruit in the grade pay of Rs. 1900 in PB-I and he gets no promotion till completion of 10 years of service, he will be granted financial upgradation under MACPS in the next higher grade pay of Rs. 2000 and his pay will be fixed by granting him one increment plus the difference of grade pay (i.e.Rs.100). After availing financial upgradation under MACPS, if the government servant gets his regular promotion in the hierarchy of his cadre, which is to the grade pay of Rs. 2400, on regular promotion, he will only be granted the difference of grade pay between Rs. 2000 and Rs.2400. No additional increment will be granted at this stage. (para 4)
3.      Promotions earned in the post carrying same grade pay in the promotional hierarchy as per Recruitment Rules shall be counted for the purpose of MACPS. (para 8)
4.      On grant of financial upgradation under the scheme, there shall be no change in the designation, classification or higher status. (para 16)
5.      The MACPS contemplates merely placement on personal basis in the immediate higher grade pay/grant of financial benefits only and shall not amount to actual/functional promotion of the employees concerned. (para 19)
6.      Financial upgradation under the MACPS shall be purely personal to the employee and shall have no relevance to his seniority position. As such, there shall be no additional financial upgradation for the senior employees on the ground that the junior employee in the grade has got higher pay/grade pay under the MACPS. (para 20)
7.      If a regular promotion has been offered but was refused by the employee before becoming entitled to a financial upgradation, no financial upgradation shall be allowed as such an employee has not been stagnated due to lack of opportunities. If, however, financial upgradation has been allowed due to stagnation and the employees subsequently refuse the promotion, it shall not be a ground to withdraw the financial upgradation. He shall, however, not be eligible to be considered for further financial upgradation till he agrees to be considered for promotion again and the second and next financial upgradation shall also be deferred to the extent of period of debarment due to the refusal. (para 25)
From the above, the following conclusions could be arrived.
8.      MACPS is provided to the officials, considering their stagnation, without any promotion.
9.      The benefit under this scheme is the same as that for a regular promotion.
10. Regular promotions earned by the official will be counted against upgradations under this scheme.
11. If any employee refuses regular promotion, the employee will not be allowed the further MACPS.
12. MACPS is not a promotion whether actual/functional as clearly spelt out in para 19.
II.                 Difference between Regular Promotion and financial upgradation
     1.      First of all promotion is entirely different from the financial upgradations under MACPS. This could be seen from the following facts.
   2.      Promotion is earned by the employee out of his sweat and blood. The financial upgradations are allowed or offered by the department, considering the stagnation of the employee.
     3.       MACPS I, II and III belong to the same cadre of Time scale Postal Assistants. But LSG, HSG II and HSG I are selection grade posts coming under different cadre and also are governed by separate Recruitment Rules.
   4.      MACPS I,II,III are offered by Divisional Level DPC and are divisional cadre. They, alongwith Time scale postal assistants are placed in the same Divisional Gradation List. As far as selection grade posts are concerned, the promotions are cleared by Circle Level DPC and are Circle Cadre and brought under a different Gradation List.
     5.      The word “Promotion” is not used in any orders for financial upgradation under MACPS. In the case of promotion to LSG, HSG II and HSG I, the word “promotion” is clearly spelt out.
    6.      MACPS I, II, III officials work against PA posts whereas the selction grade officials are working against norm based supervisory posts.
   7.      There is no change in the designation, classification or higher status in MACPS. Comparnig to MACPS officials, the selection grade officials form separate category.
    8.      MACPS officiais, even though their grade pays are equal to those of selection grade officials, they are Group C, where as HSG II and HSG I are Group B, non-gazetted.
    9.      Stepping up of pay on par with junior is not available for MACPS, whereas selection grade officials are entitled for this benefit when situation arises.
   10. Consequent on the recent cadre restructuring proposal, the officials can be classified in the promotional hierarchy as follows. From, bottom to top, the ladder would be,
Time scale postal assistant
MACP I
MACP II
MACP III
LSG
HSG II
HSG I
From the above, it could be seen that, even a MACP III official is first promoted to LSG only, even though the grade pay is equal to that of a HSG I official. A MACP III official cannot directly be promoted to HSG II or HSG I. Only after putting a minimum required service in the LSG, the official will be promoted to HSG II or HSG I as the case may be. From this, it can be said beyond doubt that LSG is a promotional post to even MACP III and hence involves more duties and responsibilities that a MACP III official. Also, in the promotional orders to LSG, it is clearly spelt that “….Time scale Postal Assistant is promoted to LSG….” Which is ample proof for the claim?
11. Also, from the annexure I of the MACPS orders, the following text proves the above claim.
a.Benefit of pay fixation available at the time of regular promotion shall also be allowed….
b.If a regular promotion has been offered but was refused by the employee…
c.However, at the time of actual promotion….
12. From the foregoing, it is very clear that LSG, HSG II and HSG I are not equal to MACPS I, II, III, even though they may have identical grade pays. 
III. About the benefits on promotion
1. FR 22, especially FR 22 (I) (a) (1) {now GID (1) below FR 22} assures for benefits on promotion on adhoc/regular/officiating basis.
2. For this benefit, the first thing is to see whether the promotion involves higher duties and responsibilities compared to the feeder post.
3.If the promotional post involves higher duties and responsibilities, then the employee is entitled for benefits of pay fixation for the promoion.
4.The quantum and the formula for fixation is governed by the Revised pay rules in force on that date.
5. In other words, FR 22 decides whether benefits are available for that promotion and the Revised pay rules prescribes the method of fixation on that promotion.
6. After the implementation of 6th CPC, the fixation is governed by CCS (RP) Rules 2008.
7. It prescribes the formula for fixation on promotion as follows “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 be granted in addition to this pay in the pay band. “ (GID (1) below FR 22 and rule 13(1) of CCS (RP) Rules 2008.)
8. Rule 13 (1) of RP rules 2008 stipulates the above formula when the promotion is from one grade pay to another. Hence, no fixation was available for promotions where the feeder post and the promotional post carry identical grade pays. Instructions are issued vide Government of India, Ministry of Finance, Department of Expenditure No: 10/02/2011.E/A dated 7.1.2013, for the grant of one increment in case the feeder post and promotional post carry identical grade pay.
9. In spite of the issue of this order, no fixation has been granted, stating that Rule 13 (1)   permits pay fixation for promotions only from one grade pay to another. This is totally wrong. This position has been modified vide OM dated 7.1.2013.
IV. The cases
1. In the following cases, pay fixation has not been given. In some cases, the benefit given to the officials have subsequently been recovered.
a. MACP I official promoted to PM Grade I
b. MACP  II, III officials promoted to LSG (cadre restructuring)
c. Many officials were promoted to LSG through FTP. They are denied the benefit of fixation when promoted to HSG II after getting MACP II stating that MACP II and HSG II have the same grade pay.
2. In the above cases, the officials are entitled for pay fixation as per FR 22, in as much as those promotional posts are involving higher responsibilities as mentioned in this article. The grade pay of the officials has no role to play as far as FR 22 is concerned. The only pre condition for application of FR 22 is that the promotional post should have more responsibilities compared to the feeder post. In all the above cases, this condition is satisfied and as such these officials are eligble for pay fixation as per FR 22 read with 13(1) of RP rules 2008 and also Min. of finance order dated 7.1.2013.
3. From the foregoing discussions, it is clear that those officials are to be provided the benefit on promotion to the extent of one increment or 3%, depending upon the date of promotion.
V. The prayer
1. It is an irony that the MACPS which derives its benefits from “Regular promotion”, FR 22 (I) (a)(1) and 13(1) of RP Rules 2008 denies the benefit on regular promotion which is guaranteed under FR 22. The benefit which is assured by the statutory provisions of FR 22 cannot be taken away by the MACPS orders.
2. CCS (RP) Rules should suitably be modified so that in the above cases, the officials are extended the benefit on promotion.
3. All the officials should be assured of the benefit on promotion which involves higher responsibilities by ignoring the MACPS and the grade pay of the official.
This should be considered at appropriate levels and orders are to be issued.
I hope the Government will consider this case and issue suitable orders in order to render justice.

Article by
R.Hariharakrishnan
Postmaster,
Srivaikuntam HO 628601

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