pay - session 1.2

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.2: Pay– Scales of Pay, Fixation of Pay on Appointment, Promotion and Reversion SESSION OVERVIEW Government organisations have a pre-defined salary structure which is used to identify the amount that should be typically paid for a particular post. This salary definition is associated with the position and not a Person or Party. Thus, we have a basic "Rate Of Pay" object which defines the rate paid for a particular Position, the Pay Period (per week, month or annual) and the Range of the rate (high, low, average). When it comes to an actual person, we maintain the pay history because the person can get a different salary at different point of time. Thus, the pay history has a time associated with it. The Fifth Central Pay Commission in Para 22.43 of its Report had recommended that the rules governing fixation of pay on promotion may be amended to provide an addition of 3% of basic pay in the lower grade or one increment in the lower grade, whichever is higher, and then fixation at the next stage in the higher pay scale. Amendments were accordingly carried out in the relevant section which we will discuss in detail during the session. LEARNING OBJECTIVES To familiarise participants with various provisions of Fundamental Rules To update knowledge in respect of fixation of pay on different occasions Quick settlement/disposal of cases Events leading to fixation of Pay Fixation of pay under FRs on appointment, promotion and reversion Fixation of pay under Central Civil Services (Revised Pay) Rules, 1997 A. P A Y - Definitions Before we proceed to discuss the topic we need to understand the basic definitions related to the subject. Terms like Pay, Time Scale of Pay, Types of Pay, Duty, and Post which are commonly used while dealing with this subject are as defined as under: 1. P a y Fundamental Rule 9 (21)(a) defines Pay as “the amount drawn monthly by a Government servant as— The pay, other than special pay or pay granted in view of his personal qualifications which has been sanctioned to a post held by him substantively or in an officiating capacity or to which he is entitled by reason of his position in a cadre; Special pay and personal pay; and Any other emoluments which may be specially classed as pay by Government. 1.1 Pay – but does not include (i) The following are not allowed to count as pay. (The list is Note 1.2 32

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Page 1: PAY - SESSION 1.2

Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.2: Pay– Scales of Pay, Fixation of Pay on Appointment, Promotion and Reversion

SESSION OVERVIEW Government organisations have a pre-defined salary structure which is used to identify the amount that should be typically paid for a particular post. This salary definition is associated with the position and not a Person or Party. Thus, we have a basic "Rate Of Pay" object which defines the rate paid for a particular Position, the Pay Period (per week, month or annual) and the Range of the rate (high, low, average). When it comes to an actual person, we maintain the pay history because the person can get a different salary at different point of time. Thus, the pay history has a time associated with it. The Fifth Central Pay Commission in Para 22.43 of its Report had recommended that the rules governing fixation of pay on promotion may be amended to provide an addition of 3% of basic pay in the lower grade or one increment in the lower grade, whichever is higher, and then fixation at the next stage in the higher pay scale. Amendments were accordingly carried out in the relevant section which we will discuss in detail during the session. LEARNING OBJECTIVES • To familiarise participants with

various provisions of Fundamental Rules

• To update knowledge in respect of fixation of pay on different occasions

• Quick settlement/disposal of cases • Events leading to fixation of Pay

• Fixation of pay under FRs on appointment, promotion and reversion

• Fixation of pay under Central Civil Services (Revised Pay) Rules, 1997

A. P A Y - Definitions Before we proceed to discuss the topic we need to understand the basic definitions related to the subject. Terms like Pay, Time Scale of Pay, Types of Pay, Duty, and Post which are commonly used while dealing with this subject are as defined as under: 1. P a y Fundamental Rule 9 (21)(a) defines Pay as “the amount drawn monthly by a Government servant as—

• The pay, other than special pay or pay granted in view of his personal qualifications which has been sanctioned to a post held by him substantively or in an officiating capacity or to which he is entitled by reason of his position in a cadre;

• Special pay and personal pay;

and

• Any other emoluments which may be specially classed as pay by Government.

1.1 Pay – but does not include

(i) The following are not allowed to count as pay. (The list is

Note 1.2 32

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.2: Pay– Scales of Pay, Fixation of Pay on Appointment, Promotion and Reversion

not necessarily exhaustive):—

(a) Fees paid to Law Officers in addition to their pay, unless the Government declares them to be pay.

(b) Hill allowance. (c) Additional pay drawn under

F.R. 49 shall be allowed to count as pay.

2. Time-Scale of Pay Time-scale of pay means “pay which, subject to any conditions prescribed, rises by periodical increments from a minimum to a maximum”. 2.1 Time-scales are said to be identical if the minimum, maximum, the period of increment and the rate of increment of the time-scales are identical. 2.2 A post is said to be on the same time-scale as another post on a time-scale if the two time-scales are identical and the posts fall within a cadre or a class in a cadre, such cadre or class having been created in order to fill all posts involving duties of approximately the same character or degree of responsibility, in a service or establishment or group of establishment; so that the pay of the holder of any particular post is determined by his position in the cadre or class and not by the fact that he holds that post. 3. Month Month for all purposes means “a calendar month”. In calculating a period expressed in terms of months and days

complete calendar months, irrespective of the number of days in each, should first be calculated and the odd number of days calculated subsequently. 3.1 Calculation of periods expressed in terms of months and days (i) To calculate 3 months and 20 days on and from the 25th January, the method will be Y M D 25th Jan to 31st Jan 0 0 7 Feb to April 0 3 0 1st May to 13th May 0 0 13 TOTAL 0 3 20 (ii) The period commencing on 30th January, and ending with 2nd March should be deemed as 1 month and 4 days, as indicated below-

Y M D 30th Jan to 31st Jan 0 0 2 Feb 0 1 0 1st March to 2nd March 0 0 2 TOTAL 0 1 4 4. P o s t 4.1 Permanent Post - means a “post carrying a definite rate of pay sanctioned without limit of time”. 4.2 Temporary Post - means a “post carrying a definite rate of pay sanctioned for a limited time”. 4.3 Tenure Post - means a “permanent post which an individual Government servant may not hold for more than a limited period”.

Note 1.2 33

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.2: Pay– Scales of Pay, Fixation of Pay on Appointment, Promotion and Reversion

4.4 Supernumerary Post - means “a person oriented post created for a limited period” and for a limited purpose to accommodate a person in certain contingencies. 5. D u t y 5.1 Duty includes-

(i) Service as a probationer or apprentice, provided that such service is followed by confirmation.

(ii) Joining time. (iii) Extra leave on average pay

granted to a Government servant, undergoing treatment at a Pasteur Institute.

5.2 Government may issue orders, declaring that in the circumstances similar to those mentioned below, a Government servant may be treated as on duty—

(i) During a course of instruction or training.

(ii) In the case of any particular

class of Government stipendiary students during the period of training as a stipendiary before substantive appointment as a Government servant, for the purpose of counting for leave and increment subject to any conditions imposed by Government.

(iii) During the period of any

examination (optional or

obligatory) which a Government servant is permitted to attend including the number of days actually required for proceeding to and returning from the station at which the examination is held.

6. Types of Pay 6.1 Personal Pay - means “additional pay granted to a Government servant”—

(i) To save him from loss of substantive pay in respect of a permanent post other than a tenure post due to a revision of pay or to any reduction of such substantive pay otherwise than as a disciplinary measure; or

(ii) In exceptional circumstances,

on other personal considerations.

6.2 Presumptive Pay - of a Post, when used with reference to any particular Government servant, means “the pay to which he would be entitled if he held the post substantively and were performing its duties”; but it does not include special pay unless the Government servant performs or discharges the work or responsibility or is exposed to the unhealthy conditions, in consideration of which the special pay was sanctioned. 6.3 Special pay - means “an addition, of the nature of pay, to the emoluments of a post” or of a Government servant, granted in consideration of—

(i) The specially arduous nature of the duties; or

Note 1.2 34

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.2: Pay– Scales of Pay, Fixation of Pay on Appointment, Promotion and Reversion

(ii) A specific addition to the

work or responsibility; or (iii) The un-healthiness of the

locality in which the work is performed.

6.4 Substantive Pay - means the “pay other than special pay, personal pay or

emoluments classed as pay by the Government under Rule 9 (21) (a) (iii) of FRs”, to which a Government servant is entitled on account of a post to which he has been appointed substantively or by reasons of his substantive position in a cadre.

B. STANDARD PAY SCALES --As Per The Fifth Central Pay Commission - (From 1.1.1996) On the recommendations of the Fifth Central Pay Commission, the Scales of Pay (Col. 3) existing from 01-01-1986 have been replaced by the Scales of Pay (Col. 4) with effect from 01-01-1996 under the Central Civil Services (Revised Pay) Rules, 1997. These do not cover cases where higher pay scales have been given in respect of certain posts as recommended by the Commission. APPENDIX S.No Post/grade Existing scale w.e.f. 1.1.86 Revised scales w.e.f.

1.1.96 1. S-1 750-12-870-14-940 2550-55-2660-60-3200 2. S-2 775-12-871-14-1025 2610-60-3150-65-3540 3. S-3 800-15-1010-20-1150 2650-65-3300-70-4000 4. S-4 825-15-900-20-1200 2750-70-3800-75-4400 5. S-5 950-20-1150-25-1400 3050-75-3950-80-4590 6. S-6 975-25-1150-30-1540

975-25-1150-30-1660 3200-85-4900

7. S-7 1200-30-1560-40-2040 1200-30-1560-40-2040 1320-30-1560-40-2040

4000-100-6000

8. S-8 1350-30-1440-40-1800-50-2200 1400-40-1800-50-2300

4500-125-7000

9. S-9 1400-40-1600-50-2300-60-2600 5000-150-8000

5000-150-8000

10 S-10 1640-60-2600-75-2900 5500-175-9000 11 S-11 2000-60-2120 6500-200-6900 12. S-12 2000-60-2300-75-3200

2000-60-2300-75-3200-100-3500

6500-200-10500

Note 1.2 35

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13. S-13 2375-75-3200-100-3500 7450-225-11500

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14. S-14 2500-4000 (proposed new pre-

revised scale 7500-250-12000

15. S-15 2200-75-2800-100-4000 2300-100-2800

8000-275-13500

16 S-16 2630 FIXED 9000 fixed 17. S-17 2630-75-2780 9000-275-9550 18. S-18 3150-100-3350 10325-325-10975 19. S-19 3000-125-3625

3000-100-3500-125-4500 3000-100-3500-125-5000

10000-325-15200

20. S-20 3200-100-3700-125-4700 10650-325-15850 21. S-21 3700-150-4450-

3700-125-4700-150-5000 12000-375-16500

22. S-22 3950-125-4700-150-5000 12750-375-16500 23. S-23 3700-125-4950-150-5700 12000-375-18000 24. S-24 4100-125-4850-150-5300

4500-150-5700 14300-400-18300

25. S-25 4800-150-5700 15100-400-18300 26. S-26 5100-150-5700

5100-150-5700-200-6300 16400-450-20,000

27. S-27 5100-150-6300-200-6700 16400-450-20900 28. S-28 4500-150-5700-200-7300 14300-450-22400 29. S-29 5900-200-6700

5900-200-7300 18400-500-22400

30. S-30 7300-100-7600 22400-600-26000 31. S-31 7300-200-7500-250-8000 22400-600-26000 32. S-32 7600 FIXED

7600-100-8000 24050-650-26000

33. S-33 8000 FIXED 26000 FIXED 34. S-34 9000 FIXED 30000 FIXED C. FIXATION OF PAY UNDER CCS (Revised Pay) RULES,1997 1. The CCS (Revised Pay ) Rules, 1997 prescribe the mode of fixation of pay in the revised scales with effect from 01-01-1996. As the Fifth Pay Commissions recommendations are about to expire if judged on the 10 year scale, and the procedures have already

been carried out in the Year 1996 itself, it will be discussed briefly. 1.1 Method of Fixation

(i) As a first step, the Basic pay in the pre-revised scale is taken as a base.

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(ii) Existing emoluments as on 1-1-1996 are added to the base at step one. Existing emoluments as on 01-01-1996 are defined as sum total of Basic Pay (including stagnation increment, if any) plus Dearness Allowance at the following rates-

(iii) Step Three - Plus Interim

Reliefs I & II at the following rates:

IR I at Rs. 100 p.m. for all. IR II @ 10% of Pay subject to

minimum of Rs. 100 p.m. (iv) Step Four – 40% of the

Basic pay in the pre-revised scale as on 1-1-1996 (popularly known as fitment benefit) is added to the sum total worked out up to step three.

Therefore, the equation works out to Basic Pay + DA + IR I & II + 40% of Pay at the stage next above the aggregate in the revised scale.

(v) If the minimum in the revised scale is more than the aggregate mentioned above, pay will be fixed at the minimum of the revised scale.

(vi) If the aggregate mentioned

above is more than the maximum in the revised scale, pay will be fixed at the maximum of the revised scale. Pay range upto % of DA

Rs. 3,000 p.m. @148% of pay Rs. 3,000 p.m. – 6,000 p.m.

@111% of pay subject to minimum of Rs 5,180

Above Rs. 6,000 p.m.

@ 96% of pay subject to a minimum of Rs 6,660 p.m.

(vii) While so fixing, where the

pay of Government servant drawing pay at more than four consecutive stages in the pre-revised scale gets bunched, scale of such Government servants who are drawing pay beyond the first four consecutive stages in the pre-revised scale shall be stepped up by grant of increments in the revised scale. This will be discussed in detail in the next session on ‘Stepping up of Pay’.

1.2 Date of next increment in the revised scale As per Rule 8 of Revised Pay Rules, 1997, the next increment of a Govt. servant whose pay has been fixed in the revised scale in accordance with Sub-rule (I) of Rule 7 shall be granted on the date he would have drawn his increment, had he continued in the existing scale. Example – An official was drawing the pay of Rs 870 from 1-4-1995 in the scale of Rs 825-15-900-20-1,200 with

Note 1.2 37

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Date of Next Increment on 1-4-1996. The scale of pay was revised as Rs 2,750-70-3,800-75-4,400 with effect from 1-1-1996 and he opted to come over to the revised scale from 1-1-1996. His pay in the revised scale will be fixed as below: ILLUSTRATION Existing scale of pay Rs 825-15-900-20-1,200 Revised scale of pay Rs 2,750-70-3,800-75-4,400 Existing pay Rs 870 D.A. as on 1-1-1996 (148% of basic pay) Rs 1,288 I Instalment of IR Rs 100 II Instalment of IR Rs 100 (10% of basic pay subject to minimum of Rs 100) Existing Emoluments Rs 2,358 Add : 40% of Basic pay Rs 348 Total Rs 2,708 The stage in the revised scale above Rs 2,706 is Rs 2,750. Since the official had drawn three increments in the pre-revised scale, his pay in the revised scale should not be less than Rs 2,750 plus one increment of Rs 70. Hence, his pay will be fixed at Rs 2,820 with DNI on 1-4-1996.

D. FIXATION OF PAY UNDER FUNDAMENTAL RULES 1. On Appointment FR 22(I)(a)(1) and FR 22(I)(b) provides that the initial pay of a Government servant who is appointed to a post on a time scale of pay shall be regulated in the following manner- 1.1 On Direct Appointment to a post - The pay will be fixed at the minimum of the scale of pay of the post to which the employee has been appointed. Example – Mr A appeared for a competitive exam of a post in Audit department carrying Scale of pay of Rs 6,500-200-6,900. He was selected for the post and given appointment. The pay he will draw on his appointment will be Rs 6,500 being the minimum of the Scale of Pay. 1.2 Appointment from a post held on a regular basis to a post not higher- Pay is fixed in the new post at the same stage as in the old post and next increment is allowed from the date due at the old post. If there is no equal stage, pay is fixed in the new post at the stage next above the old pay and increment is allowed in the new post after 12 months’ qualifying service in the new post. Pay on appointment to a non-functional Selection Grade post is also regulated in the same manner. Example –1 Mr L was serving in the Audit department and was drawing pay of Rs 7,700 in the scale of Rs 5,000-150-8,000. He was appointment to a post not involving higher responsibilities in a scale of 6,500-200-6,900 on 12-4-05. If his date of

Note 1.2 38

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increment is 1-1-05 the pay will be fixed as The equivalent of his pay in the new scale is 7,700, hence his pay will be fixed at Rs 7,700 and the date of his next increment will be 1-1-06. Example –2 If Mr. L was drawing pay of Rs 7,600 in the scale of Rs 5,500-175-9,000 and He was appointment to a post not involving higher responsibilities in a scale of 6,500-200-6,900 on 12-4-05 and if his date of increment is 1-1-05 the pay will be fixed as Range of pay nearer to his pay in the new scale Rs 7,500-200-7,700 As Rs 7,500 is less than his pay (Rs 7,600) in the old scale the equivalent of his pay in the new scale will be taken as Rs 7,700. Hence, his pay will be fixed at Rs 7,700 on the date of appointment and his date of next increment will be 1-1-06. 1.3 Fixation of pay of State Government employee on their appointment in the Central Government - The basic pay equivalent to the Central scale shall be determined by reducing the element of DA/ ADA/ Interim Relief, etc., merged in the revised scale beyond the Consumer Price Index (CPI) and, thereafter, the pay shall be fixed under the normal rules. In no case the pay shall be fixed beyond the maximum of the scale of pay of the post to which appointed.

1.4 Fixation of pay on appointment to an ex cadre post - In case of appointments to an ex cadre posts the employee can give his option to have his pay fixed at the stage next above the notional pay arrived at by increasing his pay in respect of the lower post from the date of appointment or to have fixed initially at the stage of the time-scale of the new post above the pay in the grade from where he took over the ex cadre appointment, and the pay will be refixed by notional increment on the date of next increment in the old scale from where he took over ex cadre appointment. [Saving proviso to FR 22(I)(a)(1)]

(i) When the appointment to the new post does not involve assumption of higher responsibilities, his pay shall be fixed at 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 not such stage, it shall be fixed in the stage next above his pay in respect of the old post.

[FR 22(I)(a)(2)]

(ii) A Central Government servant appointed on deputation to an ex cadre post may also elect to draw either the pay in the scale of pay of the ex cadre post or his basic pay in the parent cadre from time to time plus deputation allowance at the prescribed rate thereon plus personal pay, if any. If he elects to draw

Note 1.2 39

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pay of the ex cadre post which is higher than his cadre post, his pay in the ex cadre post will be fixed under FR 22 (I)(a)(1). If the ex cadre post is not higher, pay in the ex cadre post will be fixed under FR 22 (I)(a)(2). If he elects to draw his basic pay in the parent cadre plus deputation allowance, the question of fixation of his pay in the ex cadre post will not arise.

Example 1 –The ex cadre post and the parent department post are in the scale of pay of Rs 3,050-75-3,950-80-4,590 and Rs 2,750-70-3,800-75-4,400. The employee was drawing pay of Rs 3,050 from 1-8-04 and appointed in the ex cadre post on 1-5-05. If the ex cadre post does not involve higher responsibilities and the employee has opted to have his pay in the new post fixed from the date of next increment in the old post, i.e., 1-8-05 the fixation will be as under As the ex cadre post is not higher than the parent department post the fixation will be as per FR 22 (I)(a)(2). 1-5-05 to 31-7-05 He will continue to draw the pay of old scale

Rs 3,050

1-8-05 Pay in the old post with increment

Rs 3,100

Pay fixed in the new scale

Rs 3,125

As there is no stage equivalent to Rs 3,100 in the ex cadre post, the pay has to be fixed at the stage next above Rs 3,100, Date of next increment 1-8-06 raising it to 3,200. Example 2 – If the ex cadre post is higher in the scale of 3,200-85-4,900 and involves higher responsibilities the fixation will be as under: As the ex cadre post is higher than the parent department post the fixation will be as per FR 22 (I)(a)(1). Pay in the lower post on the date of appointment to ex cadre post

Rs 3,050

Pay in the higher post on 1-5-05, i.e., the date of appointment

Rs 3,200 (as there is no equivalent in the scale pay will be fixed at the minimum of the ex cadre scale of pay)

Pay in the lower post on 1-8-05

3,120

Pay after notional increase by one increment (in old scale)

Rs 3,190

Pay in the ex cadre post (Stage next above)

Rs 3,285

The employee will draw a pay of Rs 3,050 from 1-5-05 and Rs 3,285from 1-8-05 with the date of next increment on 1-8-06 raising it to Rs 3,370.

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2. On Promotion 2.1 His initial pay in the time-scale of the higher post shall be fixed at the stage next above the notional pay arrived at by increasing his pay in respect of the lower post held by him regularly by an increment at the stage at which such pay has accrued or Rs 100 whichever is more. [FR 22(I)(a)(1)]

(i) For fixation, the Pay drawn in the lower post held by a Government servant on regular basis is notionally increased by one increment and the pay in the higher post is then fixed at the stage next above the notionally increased pay of the lower post. The next increment in the higher post can be drawn only after a qualifying period of 12 months.

Example - An official is drawing a pay of Rs. 7,675 in the scale of 5,500-175-9,000 is promoted on 1-5-05 to a post carrying scale of Rs 7,500-200-10,500, and carrying higher responsibilities. His pay on promotion in the new scale will be fixed as below: ILLUSTRATION (A) When employee does not exercise option for fixation of pay. Pay on date of promotion Rs.

7,675Pay after notional increase by one increment in old scale

Rs. 7,850

Pay in the promoted post (stage next above)

Rs. 7900

(B) When the employee opts to have his pay in the higher post initially fixed at the next higher stage and refixed under FR Rule 22 (I)(a)(1) from the date of next increment. Pay in the lower post on the date of promotion

Rs 7,675

Pay in the higher post on 1-5-05, i.e., the date of promotion

Rs 7,700 (as there is no equivalent in the scale pay will be fixed at higher than Rs 7,675)

Pay in the lower post on 1-8-05

Rs 7,850

Pay after notional increase by one increment (in old scale)

Rs 8,025

Pay in the promoted post (Stage next above)

Rs 8,100

The employee will draw a pay of Rs 7,700 from 1-5-05 and Rs 8,100 from 1-8-05 with the date of next increment on 1-8-06 raising it to Rs 8,300. Thus from the above two situations it is clear that the second option is more beneficial to the employee. 2.2 Promotion to a higher post in the parent department on reversion from ex cadre post - The pay in the higher post will be fixed under Rule 22 (I)(a)(1) with reference to the presumptive pay he would have drawn in the cadre post but for deputation to

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the ex cadre post and not with reference to the pay drawn by the servant in the ex cadre post. [FR 22 (IV)] 3. On Reversion 3.1 On reduction to a lower stage in the time scale - The authority ordering reduction of pay of a Government servant to a lower stage in his time-scale as a measure of penalty shall state

(i) The stage to which the pay

has been reduced; (ii) The period for which the

reduction will be effective; (iii) Whether the period of

reduction will have the effect of postponing his future increments or not; and

(iv) Whether the employee will

earn increments during the period of reduction.

The period of reduction cannot be indefinite.

If the order of reduction lays down that the period of reduction will not operate to postpone future increments, on restoration the employee will be entitled to the pay he would have drawn but for the order of reduction. If the order of reduction lays down that the reduction should operate to postpone future increments for a specified period, then the pay shall be fixed as indicated above, but after treating the period for which the

increment is to be postponed as not counting for increment. [FR 29, GOI (2)] Example 1 – On conclusion of the disciplinary proceedings in the case an employee, drawing pay of Rs 10,500 in the scale of 7,500-250-12,000 major penalty of reduction to lower stage in time scale has been imposed. His pay is reduced by 4 increments down the scale. The penalty order states that the penalty will be effective for 2 years and the employee will not earn increments during the period of reduction. If the penalty order is dated 1-4-05 and the date of his next increment is 1-8-05 the working of pay after completion of the period of penalty will be Date Pay Particulars 1-4-05 10,500 Date of order imposing

penalty

1-8-05 10,500 Normal increment withheld as punishment starts

1-8-06 10,500 Currency of punishment 1-8-08 10,750 Punishment period ends,

hence normal increment allowed without releasing withheld increments as directed in the penalty order

The pay of the employee will be fixed at Rs 10,750 after completion of the period of penalty. Example 2 -In case the penalty did not disallow the employee from earning his increments during penalty period the fixation will be as -

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Date Pay Particulars 1-4-05 10,500 Date of order

imposing penalty

1-8-05 10,500 Normal increment withheld as punishment starts

1-8-06 10,500 Currency of punishment

1-8-07 11,250 Punishment period ends, hence normal increment allowed releasing withheld increments as directed in the penalty order

3.2 On reduction to a lower grade or post or lower time-scale- The reduction to a lower grade or post or lower time-scale as a penalty could be for a specified period or unspecified or definite period. If the reduction is to be imposed for a specified period, then the order of penalty should clearly state the period in terms of years and months and also the extent, if any, in terms of years and months to which it will operate to postpone future increments. The authority ordering reduction should also specify the stage in the time scale of the lower post at which the pay should be fixed. If this is not specified in the order, the pay in the lower post will be fixed under 22 (I)(a)(2). On expiry of the punishment period, his pay in the scale of pay of the post from which he is reduced, will automatically be fixed as stated 2.3 (i) above.

If the period of reduction is not specified, there will be no automatic restoration to the old post. In such cases the government servant when reappointed to the higher post will

have his pay fixed under Rule 22 (I)(a)(1). [FR 29, GOI (3)] 4. Option to choose the date of fixation of pay 4.1 The saving clause of F.R.22(I)(a)(1) provides that when a Central Govt. employee is promoted to next higher grade or post where pay has to be fixed under the provisions of F.R.22 (I)(a)(1), he may be given option for fixation of his pay as under:-

(i) Either his initial pay may be fixed in the higher post on the basis of F.R.22(I)(a)(1) straightaway without any further review on accrual of increment in the pay scale of the lower post, or

(ii) His pay on promotion may

be fixed initially at the stage on a time scale of the new post above the pay in the lower post, which may be re-fixed on the basis of the provisions of F.R.22.I(a)(1) on the date of accrual of next increment in the scale the lower post.

4.1 Re-fixation after fixation of pay

(i) As per the proviso to FR.22-B, a Government servant on promotion/ appointment to a higher post involving assumption of duties and responsibilities of greater importance than those attached to the post held by him, shall have option for

Note 1.2 43

Page 14: PAY - SESSION 1.2

Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.2: Pay– Scales of Pay, Fixation of Pay on Appointment, Promotion and Reversion

fixation of pay under FR.22-B from the date of such promotion/ appointment or initially in the manner as under FR.22(I)(b)(1) and re-fixation of pay under FR.22-B on the date of accrual of next increment in the lower post.

(ii) Revised option for fixation

of pay under FR.22-B shall be admissible when the pay of a Government servant is re-fixed in the higher post, consequent on the revision of his pay in the lower post, or consequent on the regularization of his services in the higher post from a date subsequent to the date of initial temporary promotion/appointment to the higher post which the pay is already fixed.

(iii) The option should be

exercised within one month from the date of promotion/ appointment, failing which pay shall be fixed under FR.22-B on the date of promotion/ appointment to the higher posts. In case the fixation has already taken place without the Government official exercising his option, a revised option in the above cases shall be exercised by the Government servants within one month from the date of issue of orders re-fixing the pay in the lower post or regularizing the

services in the higher post, as the case may be. If no option is exercised within the above period, pay shall be re-fixed under FR.22-B.

SUMMARY At the end of the session participants will be able to define various terms related to the subject of pay and will also understand the procedure of fixation of pay under different circumstances.

Note 1.2 44