Pay fixation on promotion

Pay on promotion is fixed by one increment in the level held, then the equal or next higher cell of the promoted level, under Rule 13, CCS (RP) Rules 2016.

Pay fixation on promotion is the re-fixing of a central government employee’s basic pay when they are promoted to a post in a higher level of the 7th CPC pay matrix, and it is done in two steps: one increment in the level held, then placement at the equal or next higher cell of the promoted level. The rule is Rule 13 of the CCS (Revised Pay) Rules, 2016, notified on 25 July 2016 as G.S.R. 721(E). The separate question of the date from which that fixation takes effect is answered by Fundamental Rule 22(I)(a)(1), which lets the employee choose between the date of promotion and the date of the next increment in the lower post.

Those two provisions decide the number every promotee wants, the new basic pay, and they are frequently confused with each other. Rule 13 supplies the arithmetic. FR 22(I)(a)(1) supplies the timing choice, and it is exercised once, in writing, within one month. Getting the second one wrong costs more than getting the first one wrong, because the arithmetic is done by the pay bill clerk while the option is the employee’s alone.

This article is the promotion-specific companion to the general pay fixation article, which covers fixation on first appointment, on the annual increment and on a pay-commission revision. Here the subject is the promotion itself: the Rule 13 method with worked examples from the published matrix, why the increment is not always 3%, the FR 22(I)(a)(1) option and the two occasions on which the Government re-opened it, when the first increment accrues in the promoted level, the identical fixation on MACP, the treatment of a same-level promotion, an ad hoc promotion and a promotion during deputation, the floor below which pay cannot be fixed, stepping up where a junior overtakes a senior, what changes in the pay slip, the effect on pension, and the one notional increment for those who retire on 30 June or 31 December. The pay fixation on promotion calculator works out an individual case.

The Rule 13 method

Rule 13 of the CCS (Revised Pay) Rules, 2016 fixes pay on promotion in two ordered steps, and the order matters. The rule reads:

One increment shall be given in the Level from which the employee is promoted and he shall be placed at a Cell equal to the figure so arrived at in the Level of the post to which promoted and if no such Cell is available in the Level to which promoted, he shall be placed at the next higher Cell in that Level.

So the increment is granted first, in the old level, and only the incremented figure is carried across. An employee in Level 6 drawing Rs. 39,900 who is promoted to Level 7 first moves one cell up in Level 6, to Rs. 41,100. That figure is then sought in Level 7. The first cell of Level 7 is Rs. 44,900, already above Rs. 41,100, so the pay is fixed at Rs. 44,900 and the net rise over the pre-promotion Rs. 39,900 is Rs. 5,000.

The second limb of the rule, the next higher cell, does the work in the more common case. Take an employee in Level 5 drawing Rs. 42,800 who is promoted to Level 6. One increment in Level 5 gives Rs. 44,100. Level 6 has no cell at Rs. 44,100: its cells run Rs. 43,600, which is too low, then Rs. 44,900. The employee is placed at Rs. 44,900. Here the landing cell is not the entry cell of the promoted level, which is what happens once an employee is several years into the lower level and their pay has already climbed past the higher level’s minimum.

A promotion can therefore raise basic pay by less than the employee expects, and the reason is structural rather than administrative. The pay-matrix levels overlap heavily: Level 5 runs from Rs. 29,200 to Rs. 92,300 and Level 6 from Rs. 35,400 to Rs. 1,12,400, so most of Level 5 sits inside the span of Level 6. The immediate gain is one increment plus the small step to the next cell of the higher level. What the promotion buys is the higher ceiling and the faster absolute growth of the higher level’s cells, not a one-time jump.

Rule 13 also caps one thing. Its second clause deals with Non-Practising Allowance and prevents the pay plus NPA of a promoted medical officer from exceeding the prescribed limit on promotion.

Why the increment is not exactly 3%

Rule 13 grants “one increment”, not 3%, and the distinction is the single most disputed point in pay fixation on promotion. Rule 9 of the CCS (Revised Pay) Rules, 2016 defines the increment as movement to the next vertical cell of the same level. The size of that step is whatever the published matrix says it is.

The matrix cells were constructed at 3% and then rounded to the nearest Rs. 100, so the realised step drifts either side of 3%. In Level 6 the cell after Rs. 50,500 is Rs. 52,000, because 3% of Rs. 50,500 is Rs. 1,515 and Rs. 52,015 rounds down to Rs. 52,000. That is a rise of 2.97%, not 3%. Elsewhere the rounding runs the other way and the step slightly exceeds 3%. An employee who computes the promotional increment as 3% of basic pay and compares it with the pay slip will usually find a difference of a few tens of rupees, and the pay slip is right.

The 3% figure comes from the 7th Central Pay Commission report, paragraph 5.1.21, which describes the vertical cells as “the steps of annual financial progression of three percent within each level”. The rounding convention is visible in the published Schedule Part A rather than stated as a rule, so the operative instruction for a fixation is always the cell value in the matrix, never a calculation. Read the cell.

The date-of-next-increment option under FR 22(I)(a)(1)

FR 22(I)(a)(1) gives the promotee a choice of the date from which pay is fixed, and it is worth real money. The employee may opt, within one month of the date of promotion, to have pay fixed either from the date of promotion or from the date of the next increment in the lower post, which is the following 1 July or 1 January under Rule 10 of the CCS (Revised Pay) Rules, 2016. The current text of FR 22(I)(a)(1) was substituted by DoPT Notification No. 13/1/2017-Estt.(Pay-I), G.S.R. 370, dated 19 November 2018, which came into force on publication rather than retrospectively.

The second choice is often the better one because two increments accrue on the date of the next increment: the ordinary annual increment in the lower level, and then the promotional increment on top of it. Under that option pay is provisionally fixed on the promotion date at the next higher cell of the promoted level, and re-fixed on the increment date by first granting the annual increment in the lower level and then re-doing the Rule 13 fixation on the higher figure. The employee draws the lower provisional pay for the intervening months and frequently lands on a higher cell of the promoted level permanently. The option for pay fixation on promotion article compares the two with worked figures; the arithmetic depends on the cell the employee currently occupies, so neither option wins in every case.

DoPT settled the availability of the option under the pay-matrix regime by OM No. 13/02/2017-Estt.(Pay-I) dated 27 July 2017, and its paragraph 3 directed that the option clause be printed in the promotion order itself, so that the one-month window is not lost to an employee who never learnt it existed.

The option is final in the ordinary case, but it is not irrevocable in the absolute sense the phrase suggests. Paragraph 2 of DoPT OM No. 16/8/2000-Estt.(Pay-I) dated 25 February 2003 allows a revised option, within one month, where an unforeseen development or a change of rules alters the position, decided on merits by the Ministry with DoPT approval. The Government has also re-opened the window twice for whole classes of employees. DoPT OM of even number 13/02/2017-Estt.(Pay-I) dated 28 August 2018 applied the July 2017 OM from 1 January 2016 and allowed anyone promoted between 1 January 2016 and 27 July 2017 to revise the option within one month, adding that “the option so revised, shall be final”. Paragraph 7 of DoE OM No. 4-21/2017-IC/E.IIIA dated 28 November 2019 went wider, giving every employee regularly promoted or granted financial upgradation on or after 1 January 2016 a further opportunity to exercise or re-exercise the option, because a material change had occurred.

The option is not available at all in three situations named in FR 22(I)(a)(1): appointment on deputation to an ex-cadre post, direct recruitment, and ad hoc appointment or promotion. It is a benefit of a regular departmental promotion.

When the first increment accrues in the promoted level

The first increment in the promoted level accrues on the following 1 July or 1 January only if six months of qualifying service in that level is strictly completed, under paragraph 5 of Department of Expenditure OM No. F.No. 4-21/2017-IC/E.III(A) dated 31 July 2018. That OM addresses the employee promoted or granted MACP upgradation exactly on 1 January or 1 July, whose pay is fixed under Rule 13: the first increment in the new level comes on the following 1 July or 1 January, “provided a period of 6 months’ qualifying service is strictly fulfilled”. The increment after that one accrues only on completion of a full year, which returns the employee to the ordinary annual cycle rather than granting two increments inside twelve months.

A promotion on any other date is dealt with by DoE OM No. 4-21/2017-IC/E.IIIA dated 28 November 2019. Its Issue No. 2 covers the employee promoted on a date other than an increment date who has opted under FR 22(I)(a)(1) for fixation from the date of next increment: the first increment in the promotional grade accrues on the 1 January or 1 July falling after six months of qualifying service counted from that re-fixation, on the analogy of the 31 July 2018 OM, with the next increment only after one year. That clarification applies with effect from 1 January 2016.

The underlying principle in both orders is the six-month rule of Rule 10 of the CCS (Revised Pay) Rules, 2016, which grants the annual increment on 1 January or 1 July to an employee who has completed six months of service on the relevant date. The annual increment article sets out the two increment dates and the qualifying-service condition in full.

Pay fixation on MACP

Pay on a financial upgradation under the Modified Assured Career Progression scheme is fixed by Rule 13 of the CCS (Revised Pay) Rules, 2016, the same rule and the same two steps as a promotion: one increment in the current level, then the equal or next higher cell of the immediately next level of the pay matrix. This is not an administrative extension of a promotion rule. Rule 13’s own worked illustration in the Schedule is headed “Granted promotion/financial upgradation under MACPS in Level 5”, so the MACP case sits inside the rule text.

The MACP scheme itself is DoPT OM No. 35034/3/2008-Estt.(D) dated 19 May 2009, and it grants financial upgradation on completion of 10, 20 and 30 years of continuous regular service where regular promotion has not come. Pay fixation on such an upgradation is governed by DoPT OM No. 35034/3/2008-Estt.(D) dated 4 July 2017.

Two features separate MACP from a promotion. MACP moves the employee up the pay hierarchy, the next level in the matrix, and not up the promotional hierarchy of posts, a distinction the Supreme Court drew in Union of India v. M.V. Mohanan Nair, (2020) 5 SCC 421, decided on 5 March 2020 by a three-judge bench, which held that the upgradation is to the immediate next higher grade pay and has nothing to do with the next promotional post. And MACP grants only the higher pay: there is no change of post, duties, status or seniority. The FR 22(I)(a)(1) option is available on an MACP upgradation, which paragraph 7 of the DoE OM of 28 November 2019 confirms by extending the re-exercise to those “regularly promoted or granted financial up gradation”.

One consequence catches employees who receive MACP and then a regular promotion. Where the later regular promotion is to the same pay level already granted under MACP, there is no fresh pay fixation and no second increment. Fixation happens only where the promotion is to a higher level, and then at the cell equal to, or next above, the figure already being drawn on account of the MACP upgradation. DoPT OM No. 25/7/2019-CS.II(B) dated 7 September 2021 treats a second 3% increment granted in that situation as an excess payment. The MACP vs promotion article compares the two, and the MACP calculator works out the fixation.

Promotion to a post in the same pay level

A promotion to a post in the same pay level carries no increment, and the reason is FR 22(III) rather than anything in Rule 13. FR 22(III) provides:

For the purpose of this rule, the appointment shall not be deemed to involve the assumption of duties and responsibilities of greater importance if the post to which it is made is on the same scale of pay as the post, other than a tenure post, which the Government servant holds on a regular basis at the time of his promotion or appointment or on a scale of pay identical therewith.

Because the appointment is not deemed to involve greater duties and responsibilities, FR 22(I)(a)(1) does not engage and Rule 13 of the CCS (Revised Pay) Rules, 2016 is never reached. The case falls instead under FR 22(I)(a)(2), which fixes pay at the stage of the new scale equal to the pay drawn, or at the stage next above it where no equal stage exists, with the increment continuing to be earned as in the old scale. The post may carry greater responsibility in practice, but the basic pay does not move.

Under the 6th CPC there was an exception. Ministry of Finance, Department of Expenditure OM No. 10/02/2011-E.III/A dated 7 January 2013 granted one increment on promotion to a post carrying higher duties but the same grade pay. No order continuing or rescinding that concession for a same-level promotion under the pay matrix has been issued, and the DoPT treatment of a second increment at an unchanged level as recoverable excess indicates the concession is not being applied under the 7th CPC structure.

Ad hoc promotion, and what regularisation restores

An ad hoc promotion carries no FR 22(I)(a)(1) option while it remains ad hoc, but regularisation restores the option retrospectively. FR 22(I)(a)(1) provides that where an ad hoc promotion is followed by regular appointment without break, “the option is admissible from the date of initial appointment or promotion, to be exercised within one month from the date of such regular appointment”. The employee therefore does not lose the benefit of the months served on ad hoc basis; the clock on the one-month window starts at regularisation.

The Fundamental (Amendment) Rules, 2018, G.S.R. 370 dated 19 November 2018, added a further limb for the officer who retired while still holding an ad hoc promotion and was later found fit alongside juniors still in service. That officer gets the same option, exercisable within three months from the date on which the junior became eligible, or from the date the immediate senior became eligible where the officer was the junior-most.

Clause (g) of DoPT OM No. 4/3/2017-Estt.(Pay-I) dated 26 October 2018 states the position compactly: the full benefits of FR 22(I)(a)(1) are not available on ad hoc promotion, but only on the regular promotion following such ad hoc promotion without break. The ad hoc appointment article covers the wider service consequences of ad hoc service.

Promotion during deputation

FR 22(I)(a)(1) expressly excludes appointment on deputation to an ex-cadre post from the option, so an officer taking up a deputation post does not choose a fixation date. Promotion in the parent cadre while the officer is on deputation is handled differently again, through proforma promotion under the next below rule: the officer is notionally promoted in the parent cadre so that the deputation does not cost them the promotion, and the pay in the ex-cadre post is then re-fixed with reference to the revised parent-cadre entitlement.

The interaction with Deputation (Duty) Allowance is where officers lose money without expecting to. Under the deputation terms in DoPT OM No. 2/11/2017-Estt.(Pay-II) dated 24 November 2017, where the proforma promotion is to a level higher than the ex-cadre post held, the upgraded basic pay is not taken into account for the allowance. At Level 14 and above the officer chooses between drawing the upgraded pay without the allowance and retaining pre-promotion pay with it. The deputation for central government employees and deputation allowance articles set out the terms in full.

The floor, and why bunching does not apply

Pay on promotion is never fixed below the first cell of the promoted level. Paragraph 7 of Department of Expenditure OM No. 1-6/2016-IC dated 3 August 2017 states that fixation in the new level depends on the pay already drawn in the previous level, and that the pay “cannot be less than the first stage of the relevant level”. Rule 13 of the CCS (Revised Pay) Rules, 2016 produces the same result on its own terms, since it places the employee at a cell of the promoted level and the first cell is that level’s minimum. A promotee whose incremented pay falls short of the entry pay of the higher level is lifted to it. The related safeguard is that a promotion never reduces basic pay: pay protection operates whenever a movement of post would otherwise leave an employee worse off.

Bunching is a different mechanism and does not apply on promotion at all. The bunching benefit was determined at the time of initial fixation in the 7th CPC pay structure on 1 January 2016 under Rule 7, where two or more consecutive pre-revised stages converged on a single cell of the revised matrix, and the same OM No. 1-6/2016-IC dated 3 August 2017 sets its terms: one increment for every two consecutive stages bunched, 3% as the test for stages being consecutive, and no benefit by reference to stages below the entry pay of the level. It has no application to a Rule 13 fixation. The bunching of pay article covers the migration-stage calculation.

Stepping up where a junior draws more

Where a Rule 13 fixation leaves a senior drawing less basic pay than a junior in the same cadre, the senior’s pay is stepped up to the junior’s under DoPT OM No. 4/3/2017-Estt.(Pay-I) dated 26 October 2018, the consolidated stepping-up guidelines. The re-fixation order issues under Fundamental Rule 27, and the senior then earns the next increment on completion of the required qualifying service counted from the date of re-fixation, not from the original increment date.

Three conditions must all hold. The senior and the junior must belong to the same cadre and hold identical posts. The pay levels of the lower and the higher posts must be identical for both. And the anomaly must arise directly from the operation of FR 22(I)(a)(1) read with Rule 13 of the CCS (Revised Pay) Rules, 2016, rather than from any other cause.

That last condition disposes of most claims, because the same OM lists eight situations that are not anomalies for this purpose. Stepping up is refused where the senior was on extraordinary leave, where the senior forwent or refused the promotion, where the senior was on deputation while the junior took an ad hoc promotion, where the senior joined the higher post later, where the senior was appointed to the lower post later, where a promotee draws more than a senior direct recruit fixed at entry pay under Rule 8, where the senior held only an ad hoc promotion, and where the junior drew qualification increments. Separately, the Supreme Court in Union of India v. M.V. Mohanan Nair, (2020) 5 SCC 421, held that no stepping up is admissible merely because a junior draws higher pay on account of an MACP upgradation. The stepping up of pay article works through the conditions, and the pay anomaly and the anomaly committee article covers the route for anomalies that stepping up cannot reach.

What changes in the pay slip

Dearness allowance and house rent allowance rise on promotion automatically and immediately, because both are percentages of basic pay. Dearness allowance at 60% of basic pay from 1 January 2026 applies to the re-fixed figure from the date the fixation takes effect, and house rent allowance at 30%, 20% and 10% of basic pay for X, Y and Z cities under DoE OM No. 2/5/2017-E.II(B) dated 7 July 2017 does the same, subject to its floors of Rs. 5,400, Rs. 3,600 and Rs. 1,800.

Transport allowance behaves differently, and this is where a promotion sometimes delivers more than the basic-pay arithmetic suggests. It is a slab amount by pay level under DoE OM No. 21/5/2017-E.II(B) dated 7 July 2017, not a percentage: Rs. 7,200 for Level 9 and above in the higher transport allowance cities and Rs. 3,600 elsewhere, Rs. 3,600 and Rs. 1,800 for Levels 3 to 8, and Rs. 1,350 and Rs. 900 for Levels 1 and 2 until basic pay reaches Rs. 24,200, at which point the Level 3 to 8 rates apply. Dearness allowance is payable on transport allowance as well.

The practical effect is uneven. Promotion from Level 8, whose entry cell is Rs. 47,600, to Level 9, whose entry cell is Rs. 53,100, doubles transport allowance from Rs. 3,600 to Rs. 7,200 in a higher transport allowance city, a jump of Rs. 3,600 a month before DA on top of it. Promotion from Level 5 to Level 6 crosses no boundary and changes transport allowance by nothing at all. The take-home salary article assembles the full pay slip, and the 7th CPC salary calculator computes it for a given level and cell.

Promotion close to retirement, and the effect on pension

A promotion in the last months of service raises the pension, because Rule 44 of the CCS (Pension) Rules, 2021 fixes pension at 50% of emoluments or of average emoluments, whichever is more beneficial to the retiring employee. Emoluments under Rule 31 are the basic pay last drawn. Average emoluments under Rule 32(1) are computed over the last ten months of service. A promotion inside that ten-month window pushes last-drawn pay above the ten-month average, so the emoluments limb produces the higher figure and governs the pension.

Average emoluments help only in the reverse case, where pay fell during the last ten months, which happens on reversion or on a reduction imposed as a penalty. Retirement gratuity under Rule 45 of the CCS (Pension) Rules, 2021 is likewise computed on emoluments as defined in Rule 31, with average emoluments substituted only where pay was reduced in the final ten months. The central government pension and emoluments articles cover the definitions, and gratuity covers the gratuity computation.

Retrospective promotion and arrears

A promotion given effect from an earlier date is ordinarily notional for pay purposes and carries no arrears. FR 17(1) provides that pay and allowances accrue from the date the employee assumes charge of the duties of the post, so seniority and the notional date of promotion may be restored without any payment for the intervening period. This is the rule that governs a promotion granted after a delayed Departmental Promotion Committee, a sealed-cover case resolved in the employee’s favour, or a court order restoring a supersession.

Courts have carved out exceptions where the delay was the employer’s own fault, and those are decided case by case rather than by a general rule. The departmental promotion committee article covers the DPC process and the sealed-cover procedure that most retrospective promotions come out of.

Refusal of promotion

Refusing a promotion has two separate consequences, one for the post and one for MACP. On the post, the employee is debarred from a fresh offer for a period, and on eventual promotion loses seniority to the juniors promoted in the meantime, which permanently affects the pay fixation date and every later fixation built on it.

On MACP the position is set out in paragraph 25 of the MACP scheme and repeated in DoPT’s frequently asked questions on MACPS. Where a regular promotion was offered and refused before the employee became entitled to a financial upgradation, no financial upgradation is allowed at all, because the employee has not stagnated for want of opportunity, which is the condition the scheme exists to relieve. Where the upgradation had already been granted before the refusal, it is not withdrawn, but the employee becomes ineligible for further upgradation until they agree to be considered again, and the next upgradation is deferred by the period of debarment. Clause (b) of DoPT OM No. 4/3/2017-Estt.(Pay-I) dated 26 October 2018 adds that stepping up is barred where the senior forwent or refused promotion, so an employee who refuses cannot later claim parity with a junior who accepted.

The one notional increment for 30 June and 31 December retirees

An employee who retires on 30 June or 31 December is granted one notional increment, reckoned for pension only, under DoPT OM No. 19/116/2024-Pers.Pol.(Pay)(Pt) dated 20 May 2025. The problem the order fixes is a one-day gap: the annual increment falls due on 1 July or 1 January under Rule 10 of the CCS (Revised Pay) Rules, 2016, so an employee superannuating on the last day of June or December completes the full year of service that earns the increment and then retires the day before it accrues, with the pension fixed on the lower figure.

The Supreme Court settled it in Union of India and another v. M. Siddaraj, Civil Appeal No. 2471 of 2023, by its order dated 11 April 2023. The Union’s review petition, Diary No. 36418 of 2024, was dismissed on 18 December 2024 for want of any error apparent on the face of the record, and the Court gave final directions on 20 February 2025 while disposing of Miscellaneous Application No. 2400 of 2024 filed by the Ministry of Railways. An interim order of 6 September 2024 in the same application had already prompted DoPT to issue an interim instruction of even number on 14 October 2024.

The May 2025 OM grants the increment that would have accrued on the following 1 July or 1 January to an employee who retired on 30 June or 31 December after completing the requisite qualifying service. The increment is notional: it is never drawn as pay. It is reckoned, in the OM’s words, “only for the purpose of calculating the pension admissible and not for the purpose of calculation of other pensionary benefits”.

The arrears position turns on when the retiree went to court. For a third party who did not litigate, the judgment operates from its own date, and pension including the one increment is payable on and after 1 May 2023, with nothing for the period before 30 April 2023. A retiree whose own writ petition succeeded is covered by the decision in their case. A retiree who filed before the Siddaraj judgment gets arrears limited to three years before the month of filing, while a retiree who filed after that judgment is placed on the same footing as a third party. Excess payments already made are not recovered. The central government pension article covers how the pension itself is computed, and notional pay fixation covers the wider practice of fixing pay notionally without arrears.

Frequently Asked Questions (FAQs)

How is pay fixed on promotion under Rule 13?
One increment is given in the level from which the employee is promoted, and the employee is then placed at the cell equal to that figure in the promoted level. Where no equal cell exists in the promoted level, the employee is placed at the next higher cell in it. That is the whole of Rule 13(i) of the CCS (Revised Pay) Rules, 2016, notified on 25 July 2016 as G.S.R. 721(E).
Is the increment on promotion exactly 3%?
No. Rule 13 grants one increment, and Rule 9 of the CCS (Revised Pay) Rules, 2016 defines an increment as movement to the next vertical cell of the same level. The pay matrix cells were built at 3% rounded to the nearest Rs. 100, so the actual step varies slightly either side of 3%. In Level 6 the cell after Rs. 50,500 is Rs. 52,000, a rise of 2.97%.
What will my pay be if I am in Level 6 at Rs. 39,900 and promoted to Level 7?
Rs. 44,900. One increment in Level 6 takes Rs. 39,900 to the next cell, Rs. 41,100. That figure is then placed in Level 7 at the cell equal to it or the next higher cell. The first cell of Level 7 is Rs. 44,900, which is already above Rs. 41,100, so the pay is fixed at Rs. 44,900, a rise of Rs. 5,000.
Should I opt for fixation from the date of promotion or the date of next increment?
Compute both and take the higher figure. Fixation from the date of next increment is often better because two increments accrue on that date, the annual increment in the lower level under Rule 10 and then the promotional increment under Rule 13, which can land the employee on a higher cell of the promoted level for the rest of the career. The cost is a few months at the lower provisional pay. The option is exercised within one month of promotion under FR 22(I)(a)(1).
Can the pay fixation option be changed after it has been exercised?
In the ordinary case no, but the option is not absolutely irrevocable. Paragraph 2 of DoPT OM No. 16/8/2000-Estt.(Pay-I) dated 25 February 2003 permits a revised option within one month where an unforeseen development or a change of rules alters the position, decided on merits by the Ministry with DoPT approval. The window has also been re-opened twice by the Government, by DoPT OM No. 13/02/2017-Estt.(Pay-I) dated 28 August 2018 and by DoE OM No. 4-21/2017-IC/E.IIIA dated 28 November 2019.
When does the first increment accrue in the promoted level?
Where the promotion takes effect on 1 January or 1 July, the first increment in the promoted level accrues on the following 1 July or 1 January, provided six months of qualifying service is strictly completed, under paragraph 5 of DoE OM No. F.No. 4-21/2017-IC/E.III(A) dated 31 July 2018. The increment after that one accrues only on completion of a full year, so the promoted employee returns to the ordinary annual cycle.
Is pay on MACP fixed the same way as on promotion?
Yes. Rule 13 of the CCS (Revised Pay) Rules, 2016 covers promotion and financial upgradation under the MACP scheme in the same provision, and its own illustration is headed “Granted promotion/financial upgradation under MACPS in Level 5”. One increment is given in the current level and the employee is placed at the equal or next higher cell of the immediately next level of the pay matrix. MACP carries no change of post, duties, status or seniority.
What happens if I am promoted to a post in the same pay level?
No increment is granted. FR 22(III) provides that an appointment is not deemed to involve the assumption of duties and responsibilities of greater importance where the post is on the same scale of pay as the post held on a regular basis. FR 22(I)(a)(1) and Rule 13 therefore never engage, and the case falls under FR 22(I)(a)(2), which fixes pay at the equal stage of the new scale.
Can pay on promotion be fixed below the minimum of the promoted level?
No. Paragraph 7 of Department of Expenditure OM No. 1-6/2016-IC dated 3 August 2017 states that the pay “cannot be less than the first stage of the relevant level”. Rule 13 places the employee at a cell in the promoted level, and the first cell is that level’s minimum, so a promotee drawing less than the entry pay of the higher level is lifted to it.
Does the bunching benefit apply on promotion?
No. Bunching is determined at the time of initial fixation in the 7th CPC pay structure on 1 January 2016 under Rule 7, where two or more pre-revised stages converged on a single revised cell, per Department of Expenditure OM No. 1-6/2016-IC dated 3 August 2017. It has no application to a Rule 13 fixation on promotion.
Do DA, HRA and transport allowance increase on promotion?
Dearness allowance and house rent allowance rise automatically from the date the revised basic pay takes effect, because both are percentages of basic pay, with DA at 60% from 1 January 2026. Transport allowance changes only if the promotion crosses a slab boundary set by DoE OM No. 21/5/2017-E.II(B) dated 7 July 2017. Promotion from Level 8 to Level 9 doubles it from Rs. 3,600 to Rs. 7,200 in the higher transport allowance cities, while promotion from Level 5 to Level 6 changes it not at all.
Does a promotion in the last few months before retirement raise the pension?
Yes. Rule 44 of the CCS (Pension) Rules, 2021 fixes pension at 50% of emoluments or of average emoluments, whichever is more beneficial. Emoluments under Rule 31 are the basic pay last drawn, and average emoluments under Rule 32(1) are computed over the last ten months. A promotion in that window raises last-drawn pay above the ten-month average, so the emoluments limb governs and the higher figure is used.
Does a retrospective promotion carry arrears of pay?
Ordinarily no. FR 17(1) provides that pay and allowances accrue from the date the employee assumes charge of the duties of the post, so a promotion given effect from an earlier date is notional for pay purposes and carries no arrears for the intervening period. Courts have made exceptions where the delay was the fault of the employer, decided case by case.
What happens to MACP if a regular promotion is refused?
Paragraph 25 of the MACP scheme, confirmed in the DoPT frequently asked questions on MACPS, provides that where a regular promotion was offered and refused before entitlement to a financial upgradation arose, no financial upgradation is allowed, because the employee has not stagnated for want of opportunity. Where the upgradation was already granted, it is not withdrawn, but further upgradation is deferred by the period of debarment.
Do employees who retire on 30 June get the annual increment?
They get one notional increment, not an actual one. Under DoPT OM No. 19/116/2024-Pers.Pol.(Pay)(Pt) dated 20 May 2025, issued in compliance with the Supreme Court order in Union of India v. M. Siddaraj, an employee retiring on 30 June or 31 December is granted the increment that would have accrued the following day, reckoned “only for the purpose of calculating the pension admissible and not for the purpose of calculation of other pensionary benefits”.

External references

References

  1. CCS (Revised Pay) Rules, 2016 (G.S.R. 721(E), notified 25 July 2016), Rule 13 (fixation of pay on promotion), Rule 9 (increments in the pay matrix), Rule 10 (date of next increment), Rule 8 (fixation of pay of direct recruits) and Rule 7 (fixation on initial migration to the matrix).
  2. Central Civil Services (Revised Pay) (Amendment) Rules, 2017, G.S.R. 592(E), Department of Expenditure, 15 June 2017 (substituting Schedule Part A; Rule 13 unamended).
  3. Fundamental Rule 22, in particular FR 22(I)(a)(1), FR 22(I)(a)(2) and FR 22(III), as substituted by DoPT Notification No. 13/1/2017-Estt.(Pay-I), G.S.R. 370, dated 19 November 2018, and FR 17(1) and FR 27.
  4. Department of Personnel and Training Office Memorandum No. 13/02/2017-Estt.(Pay-I) dated 27 July 2017, and of even number dated 28 August 2018 (option for fixation from the date of next increment, and revision of that option).
  5. Ministry of Finance, Department of Expenditure Office Memorandum No. F.No. 4-21/2017-IC/E.III(A) dated 31 July 2018, and No. 4-21/2017-IC/E.IIIA dated 28 November 2019 (date of next increment after promotion or MACP upgradation).
  6. Department of Expenditure Office Memorandum No. 1-6/2016-IC dated 3 August 2017 (bunching, and the floor of the first stage of the level).
  7. Department of Personnel and Training Office Memorandum No. 35034/3/2008-Estt.(D) dated 19 May 2009 (the Modified Assured Career Progression scheme), of the same number dated 4 July 2017 (pay fixation on MACP), and No. 25/7/2019-CS.II(B) dated 7 September 2021.
  8. Department of Personnel and Training Office Memorandum No. 4/3/2017-Estt.(Pay-I) dated 26 October 2018 (consolidated guidelines on stepping up of pay), and No. 16/8/2000-Estt.(Pay-I) dated 25 February 2003 (revision of option).
  9. Union of India v. M.V. Mohanan Nair, (2020) 5 SCC 421, decided 5 March 2020.
  10. Union of India and another v. M. Siddaraj, Civil Appeal No. 2471 of 2023, order dated 11 April 2023; review petition Diary No. 36418 of 2024 dismissed 18 December 2024; final directions 20 February 2025 in Miscellaneous Application No. 2400 of 2024; Department of Personnel and Training Office Memorandum No. 19/116/2024-Pers.Pol.(Pay)(Pt) dated 20 May 2025.
  11. CCS (Pension) Rules, 2021, Rule 31 (emoluments), Rule 32 (average emoluments), Rule 44 (amount of pension) and Rule 45 (retirement gratuity).
  12. Department of Expenditure Office Memorandum No. 2/5/2017-E.II(B) dated 7 July 2017 (house rent allowance) and No. 21/5/2017-E.II(B) dated 7 July 2017 (transport allowance).
  13. Seventh Central Pay Commission report, paragraph 5.1.21 (three percent annual financial progression within each level).