The Department of Expenditure of the Ministry of Finance has recently come out with a clarification regarding the date of next increment under Rule 10 of Central Civil Services (Revised Pay) Rules, 2016 for the central government employees. Rule 10 of the CCS(RP) Rules, 2016 provides for the entitlement of the employees for annual increment either on January 1 or July 1 depending on the date of appointment, promotion or grant of financial upgradation. Any increment during the period between January 2 and July 1 ( both inclusive) is granted on 1st of January and for those getting increment during the period between 2nd July and 1st January (both inclusive), the increment is granted on the 1st day of July. These dates will apply to increment for an employee appointed, promoted or granted financial upgradation including upgradation under Modified Assured Carrier Progression Scheme (MACPS).
The Ministry of Finance meanwhile received references seeking clarifications regarding drawal of next increment by the employee who is promoted on 1st July 2016. Department of Expenditure through an Office Memorandum (OM) dated July 31, 2018 clarified that in case of an employee is promoted or granted financial upgradation including upgradation under Modified Assured Carrier Progression Scheme (MACPS) on 1st January or 1st July, the first increment will accrue on the following 1st July or 1st January, as the case may be, provided 6 months of qualifying service is strictly fulfilled. The next increment will, however, accrue only after completion of one year.
The clarification was sought on whether after promotion on July 1st and fixation of pay with two increments the date of next increment will be 1st January or 1st July.
During the regime of 6th Central Pay Commission (CPC), when the annual increment was admissible uniformly on 1st July every year, employees completing 6 months and above in the revised pays structure as on July 1 were eligible for grant of increment. In the 7th CPC regime, there are two dates of increment 1st January and 1st July. Keeping in view the spirit of 6th CPC, OM dated 31st July 2018 was issued providing for accrual of next increment on 1st July/ 1st January in respect of employees getting promotion on 1st January/ 1st July provided 6 months qualifying service is strictly fulfilled.
Department of Expenditure in its clarification also stated that the instructions in the July 2018 OM are self-explanatory are in accordance with the rules, the first increment in the level in which promotion is made will accrue on the following 1st January or 1st July, as the case may be, provided a period of six months of qualifying service is strictly fulfilled.