7th pay commission report on annual and promotional increment

7th CPC Recommendations on Annual and Promotional Increment – Pay fixation to be done by based on Pay matrix – 3% increment to continue

The 7th Pay Commission has recommended that annual increment and Promotional increment are to be paid at the rate of 3% of basic pay.  The ready reckoner with Illustrative Examples are as follows.

Annual Increment

Suppose, Ms.ABC, who, after having been fixed in the Pay Matrix, is drawing a Basic Pay of Rs.32,300 in Level 4.  When she gets an annual increment on 1st of July, she will just move one stage down in the same Level.  Hence, after increment, her pay will be Rs.33,300.

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.

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