Withholding Annual Increments of Non-performers after 20 Years

There is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course. The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted. This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.

The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.

This will act as a deterrent for complacent and inefficient employees. However, since this is not a penalty, the norms for penal action in disciplinary cases involving withholding increments will not be applicable in such cases. This will be treated as an “efficiency bar”. Additionally, for such employees there could be an option to leave service on similar terms and conditions as prescribed for voluntary retirement.

Similar Posts:

• 7th CPC Increment : Recommendations on Annual and Promotional Increment
• Change in criteria for benchmarking of ACR
• 7th Pay Commission Increment – Recommendations on Increment Calculation
• Pay Hike – 7th CPC in its Report contained in Para 5.1.46 titled : PIB
• 7th Pay Commission Annual Increment Rates and Calculation

7th CPC Increment : The 7th Pay Commission has recommended on the rate of annual increment is being retained at 3 percent.

Illustrative Examples in Respect of annual increment…

Withholding Annual Increments of Non-performers after 20 Years : There is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course. The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted. This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments. The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.

This will act as a deterrent for complacent and inefficient employees. However, since this is not a penalty, the norms for penal action in disciplinary cases involving withholding increments will not be applicable in such cases. This will be treated as an “efficiency bar”. Additionally, for such employees there could be an option to leave service on similar terms and conditions as prescribed for voluntary retirement.

Grant of First Annual Increment in Recruits Pay : The main demand of the Services in this connection is that the existing stipulation that next increment will be granted from the date of attestation or mustering be done away with. They have pointed out that trades whose skill requirements are low and whose entry level qualifications are lower invariably get attested or mustered earlier and thus are entitled to the next annual increment earlier than trades whose training period is longer.

Analysis and Recommendations : The Commission is of the view that grant of next increment in the case of recruits should not place those with higher entry level qualifications at a disadvantage. The Commission, accordingly recommends that the date of enrolment should be reckoned for the purposes of first increment for all recruits who are finally successfully attested/mustered.

Click to read more

Similar Posts:

• Performance is the main constraint on Annual Increment in 7th CPC
• 7th Pay Commission Increment – Recommendations on Increment Calculation
• 7th Pay Commission Annual Increment Rates and Calculation
• 2 Increment days proposal ignored by 7th Pay Commission
• Change in criteria for benchmarking of ACR

“Will the 7th CPC continue the same formulae adopted by the 6th CPC, or it brings any changes in to it…!”

Yearly Increment for Central Government Employees from July 2015…

As we are in the last six months for the implementation of 7th Central Pay Commission, let us look at the calculation of yearly increment implemented in the 6th CPC.

The 6th Central Pay Commission which came in to effect from January 2006 and fully implemented with allowances like HRA, CCA, etc., from August 2008, presented a totally different look when compared to previous pay commissions. There were different types of decisions, ideas, information and recommendations in it.

The main change was that, it brought a new type of Pay Scales namely Pay in the Pay Band and Grade Pay. In order to maintain records and for easy calculation, the 6th CPC had fixed a common date for the yearly increment irrespective of their appointment date. In the previous pay commissions, the increment was given to an employee on his/her appointment month. For example, if an employee was appointed in the month of January, his/her increment month will be in the same month every year. But the 6th CPC recommended a common date and the month of July every year was fixed as the increment month for all Central Government Employees. This decision was widely appreciated by everyone. A point in the 6th CPC says that, ‘If an employee has completed six months or more in the revised pay structure as per 6th CPC, as on 1st July, he/she will be given one increment…’

In the 5th CPC, an employee’s pay is fixed in the Scale of Pay. If that individual’s scale of pay is – 3050-75-3950-80-4590, he/she gets yearly increment of Rs.75/- up to Rs.3950/- and Rs. 80/- from Rs.4590/-… If the employee reaches maximum of his pay scale, there is no further increment and get stagnated there. There were such instances of employees with no increment for three to four years.

Whereas in the 6th CPC, to remove stagnation, the commission introduced the running pay bands for all posts. If an employee reaches maximum of his pay band, after one year he will be placed in the next pay band providing him one increment. Thus, he/she moves up to the next pay band. It was a good recommendation as far as employees are concerned.

The 6th CPC also recommended that the yearly increment should not be fixed as in 5th CPC, but 3% of the employee’s basic pay should be calculated and added to the basic pay. The increment so calculated, should be rounded off to the next multiple of 10, ignoring the paise, and added to the pay band. For example, if the amount of increment comes to Rs. 1500.80, then the amount will be rounded off to Rs. 1500/- and if the amount comes to Rs. 1501.00, then it will be rounded off to Rs.1510/-.

As of now, no one can predict what will be the recommendations in the 7th CPC…The Commission in its website, said that it had stopped all type of interactions, meetings etc. and it is ready to submit its report to the Central Government in September 2015…

Will the 7th CPC continue the same formulae adopted by the 6th CPC, or it brings any changes in to it…!

Let’s all hope for the best……!

Source: www.govtstaffnewsportal.in

Similar Posts:

• Calculation of annual increment for Central Government employees as per 6th CPC..?
• 1st July of every year – ‘Increment Day’ for Central Government employees
• 7th CPC Increment: Increment Day for CG Employees
• Increment issues – Why is Annual Increment denied to employees retiring in June?
• 3% increment 7th CPC Profit & loss table for PB I.

What says FR & SR Rules regarding increment..!

Increment :
The annual increase in pay is drawn as a matter of course from the 1st of July every year, except when it is withheld as a statutory punishment. If a Government employee is on leave or is availing joining time on the 1st July, the increased pay will be drawn only from the date on which he resume duty and not from the first of July…
The annual increment will be 3% of total pay in the running pay band and corresponding grade pay rounded off to next multiple of 10. While rounding off, paisa would be ignored but any amount of a rupee or more would be rounded off to next multiple of 10.

The annual increment in pay will be drawn as a matter of course from the first of July every year, except when it is withheld as a statutory punishment. If a govt. servant is on leave or is availing joining time on the first of July, the increased pay will be drawn only from the date on which he resumes the duty and not from first of July.

The officiating service in a higher grade shall count for increments in an officer and other employee’s substantive grade as well as in the higher grade in which he is officiating and, if there is an intermediate grade between the two in which he would have officiated had he not been appointed to officiate in the higher grade, also in the intermediate grade, but the period during which an officer and other employee is on leave without pay shall not count for increment unless so authorized by the Authority for reasons to be recorded in writing.

The sanction to draw increments shall be given by the competent authority:
Provided that no increment shall be withheld except as a disciplinary measure under these regulations and each order withholding an increment shall state the period for which it is withheld and also whether the postponement shall have the effect of postponing future increments.

Similar Posts:

• Increment issues – Why is Annual Increment denied to employees retiring in June?
• 7th CPC Increment – May recommend Jan 1, July 1 as Annual Increment days
• Calculation of annual increment for Central Government employees as per 6th CPC..?
• 1st July of every year – ‘Increment Day’ for Central Government employees
• 2 Increment days proposal ignored by 7th Pay Commission

We explain with some illustrations…
The increment is an increase in pay for each year in a particular date. As per 6th CPC the annual increment has been granted on 1st July of every year and the qualifying period for earning an increment is six months on 1st July. One increment is equal to 3% (three per cent) of the sum of the pay in the pay band and the grade pay will be computed and rounded off to the next multiple of ten.

As per the Rule No.13 of CCS(Revised Pay) Rules 2008, “In the case of calculation of increments under the revised pay structure, paise should be ignored, but any amount of a rupee or more should be rounded off to next multiple of 10. To illustrate, if the amount of increment comes to Rs.1900.70 paise, then the amount will be rounded off to Rs.1900; if the amount of increment works out to be Rs.1901, then it will be rounded off to Rs.1910.”

And finally the increment amount will be added to the existing pay in the pay band.

For example :
An employee’s pay in the pay band is Rs.10,230 and his grade pay Rs.2800, his basic pay = 10,230 + 2,800 = 13,030

His increment will be calculated as follows…
13,030 x 3% = 390.90
after rounded off to ten, it will be 390 only.

Whereas, the another employee’s pay in the pay band is Rs.10240 and his grade pay Rs.2800, his basic pay = 10,240 + 2,800 = 13,040
His increment will be calculated as follows…
13,040 x 3% = 391.20
then it will be rounded off to Rs.400.

Source: CGEN.in

Similar Posts:

• Yearly Increment Calculation – Will the 7th CPC continue the same formula or it brings any changes in to it…!
• 1st July of every year – ‘Increment Day’ for Central Government employees
• 6th CPC INTRODUCES NEW METHOD OF CALCULATION FOR INCREMENTS
• FR & SR Rules – What says Rules regarding increment..!
• 7th CPC Increment: Increment Day for CG Employees