8th Pay Commission Update: Decision on salary hike on promotion postponed, lakhs of central employees will have to wait

8th Pay Commission Update: At present, no relief has been received on an important long standing demand of the central employees. The government has made it clear that the matter related to salary fixation on getting regular promotion after MACP (Modified Assured Career Progression) will now be directly under the purview of the 8th Pay Commission. That is, the final decision on this subject will be taken only after the recommendations of the Commission. In such a situation, lakhs of employees may have to wait for some more time.

What is the whole controversy of Salary Fixation?

There are many central employees who have already received financial benefits under the MACP scheme. After this, when they get regular promotion, as per the current rules, they are not given the benefit of additional pay fixation or additional increment at the time of promotion. Employee organizations have been demanding changes in this system for a long time.

Why was the MACP plan created?

The MACP scheme was started for those employees who do not get regular promotions for years. Through this scheme, financial upgradation is given to the employees at fixed time intervals so that they can get relief from the situation of working in the same pay scale for a long time. However, this benefit is only financial and does not involve any change in position or responsibilities.

What is the main demand of employee organizations? (8th Pay Commission Update)

Employee organizations say that when an employee gets regular promotion, his work and responsibilities increase compared to before. In such a situation, merely changing the designation is not enough, but a separate increase in salary should also be given. They argue that the benefit of additional pay fixation under FR 22(1)(a)(1) should be given at the time of promotion so that the employees can also get financial benefits commensurate with their new responsibilities.

Why are the existing rules not meeting the expectations of the employees?

According to the rules currently in force, if an employee has already received the benefit of MACP and after that he gets a regular promotion, then he is not given additional increment at the time of promotion. This is the reason why employee organizations are continuously demanding change considering this system as pay inequality.

Why did the controversy increase after the 7th Pay Commission?

Employee representatives say that due to the provision of grade pay during the 6th Pay Commission, employees used to get some additional financial benefits along with promotion. But after the implementation of Pay Matrix in the 7th Pay Commission, grade pay got abolished, due to which the financial benefit of promotion became quite limited. For this reason the employees are now demanding additional increment.

What did the government say?

The government says that this is not a matter of just one employee but a matter related to broader policy. Therefore, any major change in this will be made only on the basis of the recommendations of the 8th Pay Commission. At present no amendment has been made in the existing rules.

On which subjects is work going on in the 8th Pay Commission?

The Commission is currently collecting suggestions from various ministries, departments and employee organizations. After studying the proposals related to salary structure, allowances, pension and service conditions, the Commission will prepare its detailed report. Only after this the government will take the final decision.

Can we get relief soon?

At present, there seems to be little possibility of any immediate decision on this issue. First the commission will analyze all the suggestions, then submit its recommendations to the government. Only after this the government will consider them and take the final decision. Therefore, employees may have to wait for some more time.

What will be the benefit to the employees if the demand is accepted?

If the 8th Pay Commission supports this demand of the employees and the government approves it, then it may open the way for additional salary hike on getting regular promotions.

This will improve the system of pay fixation, long-standing pay related discrepancies can be reduced and the financial benefits of promotion will also be more than before. However, at present no final decision has been taken on this and the employees will have to wait for the recommendations of the commission.

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