Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.

3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications SESSION OVERVIEW In the earlier session on Pay we had discussed that Government organisations have a pre-defined salary structure which is used to identify the amount that should be typically paid for a particular post. In the event of Government employees promotion, revision of his scale of pay, or his appointment to other scale in the ex cadre/ within department post; his pay is fixed in the higher scale. The procedure of fixation of pay we have already discussed in earlier session. Certain anomalies may arise at the time of fixation of pay when the increment in the new scale may have to be stepped up. We will discuss this aspect of fixation of pay in this session. In the earlier session, discussion was also made on Time-scale of pay which, subject to any conditions prescribed, rises by periodical amounts from a minimum to a maximum, termed as increments. In this session we will understand the term in detail and also about various types of increments applicable to pay scales. Case studies related to stepping up of pay Interpretation of the term increment Types of increments Incentives admissible to a Government servant on acquiring higher qualifications.

A. STEPPING UP OF PAY - to remove anomalies 1. Meaning of stepping up of pay

1.1 There are no specific Law or Code or Rules for Stepping up of the pay with a view to removing genuine anomalies. It is permissible under specific Government orders subject to conditions discussed in earlier session on Pay. 1.2 At the time of fixation of pay in as detailed in the beginning of the session, situations may arise when a Government servants pay is not fixed by the actual rise of increment (one at a time in period of 12 months) but is stepped up by one or more increments to remove anomalies. This extra rise in the pay, technically referred as raise of increment, to bring him at par with the junior colleague, or to give regard to the years of service which the senior has put in; is referred as Stepping up of pay. 1.3 Anomalies arise due to various reasons to be dealt in detail during the session.

LEARNING OBJECTIVES During the session efforts will be made to familiarise the participants about the Concept of stepping up of pay Situations which give rise to anomalies in the pay of a Government servant

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications 2. Situations giving rise to anomalies 2.1 Fixation of pay under FR 22(I) (a) (1) on promotion to a higher post (i) At the time of fixation of pay on promotion, situation may arise that the pay is fixed at an amount which is not equivalent to stage in the new scale. Under such situation, the pay in the new scale is fixed at the stage next above the actual figure of fixation by stepping up of pay.
increment (in old scale) Pay in the higher post (Stage next above) 1-5-05 to 31-7-05 He will continue to draw the pay of old scale 1-8-05 Pay in the old post with increment Pay fixed in the new scale

Rs 3,285

Rs 3,050

Rs 3,100

Rs 3,125

Example An official drawing pay of Rs 3,050 from 1-8-04 in the scale of pay of Rs 2,750-70-3,800-75-4,400 is promoted to another post in the scale of Rs 3,200-85-4,900 on 1-5-05. 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., 1-805 the fixation will be as under The fixation will be as per FR 22 (I)(a)(1).
Pay in the lower post on the date of promotion Pay in the higher post on 1-5-05, i.e., the date of promotion Rs 3,050

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. 2.2 In the case of senior promoted prior to 1-1-1996, vis--vis his junior promoted subsequent to that date in the revised scale under CCS (RP) Rules, 1997- In cases, where a Government servant promoted to a higher post before 1st Jan06, draws less pay in the revised scale than his junior who is promoted to the higher post on or after 1st Jan06, the pay of the senior Government servant should be stepped up to an amount equal to the pay as fixed for his junior in that higher post. The stepping up should be done with effect from the date of promotion of the junior Government servant subject to the fulfilment of the conditions below(i) Both the senior and junior employees should belong to the same cadre and the posts to which they have been promoted or appointed

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) 3,120 Rs 3,190

Pay in the lower post on 1-8-05 Pay after notional increase one by

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications identical and in the same cadre. (ii) The junior and the senior should have held identical scales in the lower post and should hold identical scales in the higher post. The anomaly should directly arise from application of the relevant rule/ order. The stepping up of pay is admissible with reference to the first junior (not necessarily immediate junior) on only one occasion; but if the junior concerned gets his pay stepped up at par with one junior to him, then the pay of the senior may again be stepped up. The junior should not have been drawing more pay than the senior from time to time in the lower post. Advancement of DNI (item 4) of senior is admissible only if he was drawing more pay than the junior in the pre-revised scale and his pay in the revised scale is fixed at the same stage as that of his junior. the introduction of non-functional selection grade draws less pay than his junior who is promoted to a higher post later, after having been appointed in the selection grade. In order to remove the above anomalies, the pay of senior employee in the higher grade may be stepped up to make equal to the pay of the junior person, subject to the following conditions(i) The scale of pay of the lower post and higher post in which both junior and senior are entitled to draw pay should be identical. The senior employee should have been eligible for appointment to Selection Grade but for his working in the higher post on or before the date on which the junior was appointed to the selection grade. The junior person should not have drawn more pay than the senior by virtue of fixation of pay under the normal rules or any advance increment granted to him in the lower post, and the anomaly should be directly as a result of the junior person holding Selection Grade in the higher scale at the time of his promotion to the higher grade. The stepping up should be done with effect from the date of promotion of the

(iii)

(iv)

(ii)

(v)

(iii)

(vi)

2.3 Fixation of pay on appointment to Selection Grade posts in Groups C and D cadres not involving higher responsibilities Cases have come to notice where a senior Government servant promoted to higher post before

(iv)

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications junior employee higher grade. to the The stage above Rs 11,430 is Rs 11,575 in the revised scale of pay and his pay will be fixed at Rs 11,575. His pay will be stepped up to Rs 11,850 on 1-1-96 itself as he had been stagnation at the maximum of the pre-revised scale for more than a year. 3. Procedure of stepping up of pay

[G.I., M.H.A., Dept. of Per. & A.R., O.M. No. 4 (3)-82/Estt. (P-1), dated 15th February, 1983]

2.4 Fixation of pay in the revised scales under CCS (RP) Rules, 1997 (i) Cases which come under this category are where the senior had been drawing maximum of the prerevised scale of lower post before his pay was fixed in the new scales under CCS (RP) Rules. Here the date of next increment of the senior will be advanced at par with the junior.

Example An official was drawing the pay of Rs 4,000 plus SI of Rs 100 from 1-12-1995 in the scale of Rs 2,200-75-2,800-100-4,000. The scale of pay was revised as Rs 8,000-27513,500 with effect from 1-1-1996. His pay in the revised scale will be fixed as below: ILLUSTRATION
Existing scale of pay Revised scale of pay Existing pay D.A. as on 1-1-1996 (111% of basic pay + SI subject to minimum of Rs 5,180) I Instalment of IR II Instalment of (10% of basic pay + SI) Existing Emoluments Add : 40% of Basic pay + SI Total IR Rs 410 Rs 2,200-75-2,800-100-4,000 Rs 8,000-275-13,500 Rs 4,100 Rs 5,180

3.1 Every ten years (generally) a new Pay Commission is instituted to review the scales of pay of Government servants. Once new pay scales come into existence, the old scales are revised and the pay of the employees are fixed in the revised scales. In the earlier session on Pay we had discussed the steps involved in fixation of pay under CCS (RP) Rules, 1997 after revision of pay scales by the Vth Central Pay Commission. 3.2 While fixing the pay of the employee in the revised scales, sometimes, the pay of Government servant drawing pay at more than four consecutive stages in the pre-revised scale gets bunched ( gets fixed in the revised scale at the same scale). Under these circumstances, the pay in the revised scale of such Government servants who are drawing pay beyond the first four consecutive stages in the pre-revised scale shall be stepped up as under by the grant of increment(s) in the revised scale: (i) For those drawing pay from the 5th to 8th stage in the pre-revised scale by one increment. For those drawing pay from the 9th to 12th stage in the

Rs

100

Rs 9,790 Rs 1,640 Rs 11,430

(ii)

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications pre-revised scale, if there is bunching beyond the 8th stage by two increments. (iii) For those drawing pay from the 13th to 16th stage in the pre-revised scale, if there is bunching beyond the 12th stage by three increments. 6. Instances which do not constitute anomaly for stepping up of pay 6.1 The following instances do not constitute an anomaly of junior drawing more pay than the senior and stepping up of pay will not be admissible in such cases:(i) 3.3 While fixing the pay as above it should be ensured that the employee gets at least one increment in the revised scale for every three increments (including stagnation increments, if any), in the existing scale. 4. Competent Authority (ii) 4.1 In respect of items (i) to (iii) of Para 3 above, the authority competent to exercise powers under FR 27 is competent to sanction stepping up of the pay of the senior and the sanction should be issued in exercise of powers under FR 27. In respect of item at (iv), the Head of Office or Head of Department, as the case may be, is competent to advance the date of next increment. 5. Increment A senior forgoing/ refusing promotion leading to the promotion of junior earlier and drawal of higher pay than the senior; increased pay drawn by a junior due to ad hoc officiating/ regular service rendered in the higher posts for periods earlier than the senior. A senior joining higher post later than the junior in the lower post itself and drawing less pay than the junior, when promoted to the higher post earlier than the junior. A senior joining higher post later than the junior, when promoted to the higher post earlier than the junior. A senior direct recruit drawing less pay than a Extraordinary leave resulting in postponement of the date of next increment with consequent drawal of less pay than the junior in the lower grade itself; pay parity cannot be claimed even if promoted earlier to the higher grade.

(iii)

5.1 After stepping up of pay, the next increment will fall due after completion of normal qualifying period of 12 months from the effective date of the stepping up. [GOI (23), FR 22; Rule 8, CCS (RP) Rules]

(iv)

(v)

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications junior promotee whose pay has been fixed with reference to the pay drawn in the lower post. (vi) When a junior gets more pay due to additional increments earned on acquiring higher qualifications. Case Studies 7.2 Stepping up of pay of directly recruited section Officers recruited through Civil Service Examination to the level of pay guaranteed to their junior Departmental Section Officers (i) In the pre 1996 revised scale of pay where a Senior direct recruit Section Officer is drawing less pay than a promotee Section Officer appointed from the same or later date by virtue of the pay of the promotee Section Officer having been fixed at the guaranteed minimum of Rs. 2,120 in the scale of Rs. 2,000-3,500, the pay of the direct recruit will be stepped up by the concerned cadre authority under FR 27 with effect from the date of promotion of the promotee officer, to the stage of Rs. 2,120. The increment after the stepping up will be admissible to such direct recruit Section Officers on completion of necessary qualifying service from the date from which the pay is so stepped up. These orders will also be applicable to the released ECOs/ SSCOs subject to certain conditions.
[O.M. No. 5/1/95-CS-I, dated 331-7-1995.]

7.

7.1 Stepping up of pay of departmental candidate from the DNI of direct recruit whose training period was counted for increment (i) In respect of direct recruits, the period of training before appointment counts for increments and this does not count for increment in case of departmental candidates. This may result in the departmental promotees drawing less pay than a direct recruit junior to him. This anomaly may arise either from the date of his promotion or from the date of next increment of the direct recruit, and may be removed by stepping up the pay of the departmental promotee employee from the date of next increment of direct recruit junior to him.
[O.M. No. 16/1689-Estt. (Pay-I), dated 29-03-1993]

(ii)

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications B. INCREMENTS 1. Meaning (i) (ii) All periods of duty. Service in another post, other than a post carrying less pay. All kinds of leave, other than extraordinary leave. Extra ordinary granted. (a) on medical grounds If a Government servant is on leave or is availing joining time on the 1st of the month in which it falls due, the increased pay will be drawn only from the date on which he resumes duty and not from the first of the month. 3. Qualifying period (b) otherwise than on medical certificate due to the inability of the Government servant to join duty on account of civil commotion (c) for pursuing higher technical and scientific studies (v) (vi) (vii) (viii) Deputation out of India. Foreign service. Joining time. Period of training before appointment on stipend or otherwise. [FR 26] leave

An annual increase in pay drawn as a matter in course from the 1st of the month in which it falls due, except when it is withheld as a statutory punishment is termed as increment. [FR 24] 2. General

(iii)

(iv)

3.1 The qualifying period for earning increment is 12 months. For the purpose of arriving at the date of next increment, the total of all such periods as do not count for increment shall be added to the normal date of increment. 3.2 Increment earned in the qualifying period of 12 months is termed as Regular Increment. 3.3 The date of next increment may fall on any date in a month, but it will be drawn from the first of that month. [FRs 26 & 24.] 4. Periods which count for increments 4.1 The following service in the stage of a time-scale counts for increment at that stage:-

4.2 In case of Government servants proceeding on leave or going on deputation out of India while officiating in a post, a certificate from the competent authority to the effect that the Government servant would have continued to officiate but for proceeding on leave/ going on deputation out of India is necessary to

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications count the periods at (iii), (iv) and (v) above. 4.3 For the purpose of arriving at the date of next increment in a time scale, the total of such periods as do not count for increment in that time-scale will be added to the normal date of increment. An illustration explaining the methods of reckoning the date of increment under FR 26 is as belowDate of last increment 23-4-04 (i) With cumulative effect- In this case the entire period of the punishment is lost so far as earning further increment is concerned and will put the Government servant to a recurring loss. Without cumulative effect If it is without cumulative effect, the loss will be for a temporary period of the punishment, and after the punishment is over, the withheld increments will be restored and the future increments drawn on due dates.

(ii)

EOL taken otherwise than on medical certificate, which do not count for increment Days 3 6 9 4 3 4 29 From 29-05-04 15-07-04 07-10-04 18-12-04 26-01-05 16-03-65 To 31-05-04 20-07-04 15-10-04 15-10-04 28-01-05 19-03-05

C. ADVANCE INCREMENTS 1. Meaning

Determination increment

of

actual

date

of

1.1 As we have seen in the earlier topic, increment is generally earned in 12 months. This is commonly known as yearly increment or Regular Increment. 1.2 There are situations when an employee can be granted increment of pay before expiry of 12 months period or in other words, as the term signifies, in advance before completion of the qualifying period of 12 months. This is referred as Advance Increment. [FR 27] 2. Competent Authority

Date of last increment Date of next increment (but for taking EOL) Total days of EOL Date of next increment (23-04-05 + 29 days) 5.

23-04-04 23-04-05

29 22-05-05

Withholding of increment

5.1 A competent disciplinary authority can impose the punishment of withholding increment of a Government servant in two ways-

2.1 An Authority who is competent to create a post, whether temporary or permanent, may grant advance increments [otherwise called

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications premature increment(s)] not only to the incumbent of the post created under his own powers but also to those appointed to other posts in the same cadre on the same scale of pay, created with the concurrence of the higher authorities. 2.2 The power to grant advance increment is invoked also in cases where the pay of a Government servant has to be fixed under certain circumstances and also to remove anomalies in fixation of pay. 3. Effect on future increments certain perquisites, special allowance or deputation allowance admitted in the previous post. [FR 27 & GIOs]

D. STAGNATION INCREMENTS 1. Meaning - When an employee reaches to the highest scale of pay in the time scale of his pay without any further scope for any increment he is granted stagnation increment to compensate for the stagnation at the highest range of pay in his scale. 2. Eligibility

After the grant of advance increment(s), the Government servant will draw his next increment on the normal increment dates. 4. Cases not eligible

2.1 Admissible to all employees, the maximum of whose pay does not exceed Rs 22,400. 2.2 It is not admissible to those drawing fixed pay. 3. Amount 3.1 It will be equivalent to the rate of increment last drawn by the employees in their pay scales. 3.2 It will be treated as Pay for all purposes. 4. Conditions

4.1 This power should not be used to grant advance increment(s) (i) As a reward for meritorious work. In disregard of the advice given by the Ministry of Finance in any individual case of fixation of pay. In disregard of the normal rules governing fixation of pay except in cases of hardship or where the circumstances are unusual; or While fixing the initial pay on appointment to a post to compensate for the loss of

(ii)

(iii)

(iv)

4.1 The first stagnation increment will be granted after two years reckoned from 1-1-1996. The period, if any, spent at the maximum of the prerevised scales will not be taken into account. In other words, no Government servant will be eligible for the first stagnation increment in the revised scale before 1-1-98.

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications 4.2 A maximum of three stagnation increments will be allowed at the rate of one increment after every two years. for acquiring higher qualifications useful in the discharge of higher official work:1 increment E. INCENTIVE FOR ACQUIRING FRESH HIGHER QUALIFICATIONS 1. General 2 increment 3 increment 4 increment 5 and increment 3. Rs. (minimum) Rs. 4,000 Rs. 6,000 Rs. 8,000 6 Rs. 10,000 2,000

1.1 In pursuance of the recommendation made by the Fourth Central Pay Commission, the question of grant of incentive on acquiring higher qualifications was considered by the Government and a centralized committee was constituted. The Ministries/Departments of Government of India were advised vide this that from the financial year 1993-94, the system of giving advance increments shall be replaced by grant of lump-sum amount as incentive.
[(DOPT., O.M. No.1/2/89-Estt.(Pay.I) dated the 28th June, 1993)]

Government Guidelines

3.1 Incentive should be considered only if the higher qualification will make the official more effective in the present or next higher assignment. 3.2 The quantum of lump-sum, onetime incentive shall be based on qualification without any relation to increment or level/ grade of the officer. 3.3 If the Central Government employees and civilian employees of Ministry of Defence acquire the higher qualification by taking study leave, they are not eligible for the incentive. 3.4 The incentive would be given only for higher qualification acquired after induction into service and will not apply for the incentives now being given in the existing schemes for possession of higher qualification at an entry stage. 3.5 The incentive shall not be available for the qualifications which are laid down as essential or desirable qualifications in the recruitment rules for the post.

1.2 Policy guidelines were also provided to consider grant of lumpsum incentive for acquiring fresh qualifications for which there was no scheme for grant of advance increments. Standardised scales of lump-sum incentives in respect of the existing increment based schemes were issued as we have discussed in earlier heading. [(DOPT., O.M. No.1/2/89-Estt.(Pay.I) dated the 31st Jan. 1995)] 2. Lump-sum incentive

2.1 A lump-sum incentive in replacement of the existing increment based incentive has been introduced from 1-4-1993 in the following scales

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications 3.6 No incentive would be admissible if an appointment is made in relaxation of the educational qualification. 3.7 No incentive would be admissible if employee acquires the requisite qualification for such appointment at a later date. 3.8 The acquisition of the qualification should be directly related to the functions of the post held by him/her or to the functions to be performed in the next higher post. There should be direct nexus between the functions of the post and the qualification acquired and that it should contribute to the efficiency of the government servant. 3.9 The qualifications meriting grant of incentive should be recognised by the All India Council for Technical Education, Department of Electronics, Deemed University, University or recognised by the Government. 3.10 No stepping up of pay shall be allowed in the case of juniors by virtue of drawing more pay under the scheme of advance increments. 3.11 The grant of incentive for the qualifications listed in the annexure may be considered by the administrative authorities in consultation with their integrated finance and necessary orders issued after ensuring that the criteria laid down above is fulfilled. 3.12 The incentive will be admissible on acquiring the higher qualifications 5. on or after the date of issue of Govt. guidelines as under.
[DOPT., O.Ms. No. 1/2/89-Estt. Pay-I, dated 28-6-1993, 31-1-1995 and 9th April, 1999.]

4. Qualifications listed in the Annexure to DoPT O.M. No. 1/2/89 Estt. (Pay.I) dated 9th April, 1999 -and the entitled incentive Sl. Nature of Degree Amount of incentive

Degree in Engineering or equivalent in the Rs.8,000/respective discipline Post Graduate degree or Rs. equivalent in 10,000/Engineering in respective discipline. Ph.D in the filed relevant Rs. to the functions of the 10,000/government servant. Diploma or equivalent in Rs. Computer Science/ 4,000/Computer Applications/ Information Technology relevant to the functions of the government servant. PG Diploma in Rs. 6,000/Computer Science/Computer Applications/Information Technology relevant to the functions of the Government servant. Degree in Computer Rs. Science/Computer 8,000/Applications/

2.

3.

4.

6.

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Indian Audit and Accounts Department Courseware on Various Entitlements admissible to a Government Servant Session 1.3 : Stepping up of Pay to remove anomalies, Increments Regular, Stagnation and Advance, Incentives for higher qualifications Information Technology relevant to the functions of the government servant. 7. Post Graduate Degree in Rs. Computer Science/ 10,000/Computer Applications/Information Technology relevant to the functions of the government servant. P.G.Diploma in Rs. Materials Management 6,000/from Institute/ University/ Deemed University etc. recognised by the All India Council for Technical Education Government of India. PG/Ph.D in Veterinary Rs. Science. 10,000/India. 11. (a) On passing Rs. 2,000/intermediate examination of the Institute of Company secretaries of India. (b) On passing final Examination of the Institute of Company Secretaries of India. 12. Multi skill diploma in relevant fields. Rs. 4,000/-

8.

Rs. 4,000/-.\

SUMMARY At the end of the session participants will be able to under the concept of stepping up of pay and the circumstances which give rise to this anomaly and the remedies available to bring at par the pay of junior and senior. They will also understand various types of increments admissible and will be able to apply the knowledge in practical dealings.

9.

10. (a) on passing Rs. Intermediate/Part I 4,000/Examination of the Institute of Chartered Accountants of India, Cost & Works Accountants of India/Institute of Chartered Financial Analysts of India. (b) On passing final Rs. examination of Institute 8,000/of Chartered Accountants of India / Cost & Works Accountants of India/ Institute of Chartered Financial Analysts of

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