“Forward ever, backward never: onwards with Breaking Through”
16/11/2016
7th Pay Commission MACP Pay fixation – How to fix pay of central government employees on grant of MACP (Modified Assured Career Progression) on or after 1st January 2016?

MACP Scheme which was introduced on implementation of 6th Pay Commission by revising Annual Career Progression Scheme (ACP) is continued to be effective after implementation of 7th Pay Commission with following changes.1.  The benchmark for considering the grant of MACP to Central Government Employees has been increased. Earlier the benchmark recorded in APAR (Annual Performance Appraisal Report) as “Good” will be the minimum eligibility (Click here to checkout MACP before 7th Pay Commission). Now benchmark in APAR for grant of MACP after 7th Pay Commission has been revised to “Very Good”.

Accordingly, MACP OM dated 19.04.2009 has been modified by OM O.M. No.F.No.35034/3/2015-Estt.(D), dated 28.09.2016 as follows

“17. For grant of financial upgradation under the MACPS, the prescribed benchmark would be ‘Very Good’ for all the posts.”

2.  MACP prior to 7th Pay Commission implementation involves placement in the next grade pay in the grade pay hierarchy and 3% increment in Basic Pay (pay in pay band and grade pay).

After implementation of 7th Pay Commission, financial upgradation under MACP is granted by providing one increment in the existing pay level and placing to equal or next higher pay in the next higher level of pay matrix.

MACP Pay fixation after 7th Pay Commission Implementation as per OM dated 28.09.2016 and Rule 13 of 7th Pay Commission (Revised) Pay Rules 2016:

Illustration 1 : MACP on 1st August 2016:(Applicable to employees granted MACP between 2nd July and 1st January )

1. 7th Pay commission Pay of an employee is fixed as Rs. 34900 in Level 5 (as against grade pay of Rs. 2800 in 6th CPC Pay) as on 1st January 2016.

2. As on 1st July 2016, he will be entitled to annual increment. Therefore, his pay will be fixed as Rs. 35,900/- at Level 5 Index 8.

3. He is entitled to MACP as on 1st August 2016.

4. In this case, financial upgradation under MACP is granted as follows.

Step 1: Existing Pay of Employee which is in Index 8 of Level 5 will be provided with MACP Increment and therefore his pay will be placed in Level 5 – Index 9, viz., in 37,000/-

Step 2. Since there is no pay in the next level (level 6) which is equal to Rs. 37,000/-, the next higher basic pay in Level 6 is Rs. 37,600/- which is at Index 3 of Level 6.

The relevant portion of Pay Matrix is given below.

Grade Pay 2400 2800 4200
Entry Pay (EP) 9910 11360 13500
Level 4 5 6
Index 2.57 2.57 2.62
1 25500 29200 35400
2 26300 30100 36500
3 27100 31000 37600
4 27900 31900 38700
5 28700 32900 39900
6 29600 33900 41100
7 30500 34900 42300
8 31400 35900 43600
9 32300 37000 44900
10 33300 38100 46200
As per Rule 9 of 7th Pay commission Pay Rules 2016 the next date of annual increment in respect of this employee will be on 1st July 2017.

Illustration 2 : MACP on 1st March 2016:(Applicable to employees granted MACP between 2nd January and 1st July )

1. 7th Pay commission Pay of an employee is fixed as Rs. 55,200/- in Index 6 Level 8 (as against grade pay of Rs. 4800 in 6th CPC Pay) as on 1st January 2016.

2. He is entitled to MACP as on 1st March 2016.

3. As per O.M. No.F.No.35034/3/2015-Estt.(D), dated 28.09.2016, recommendations of 7th Pay Commission on MACP takes effect from 25th July 2016.

4. (i) Hence, an employee who is granted financial upgradation under MACP in the year 2016 between 2nd January to 1st July, can have his/her MACP pay fixed in 7th CPC Pay Matrix only if he/she exercise the option under FR22(I) a(1) for fixation of pay from 1st January 2017 viz., the next date of his/her annual increment.

Note: As per FR 22 (I) (a) (1), central government employees have the option, to have their pay fixed from the date of promotion / MACP or from the date of next increment.

Checkout clarification issued by Finance Ministry on exercising option under FR(22) (I) (a) (1) for fixing pay from the date of promotion / MACP or on the date of next increment

Note: As per Rule 9 of 7th Pay Commission Revised Pay Rules 2016,  An employee who is granted MACPS during the period between 2nd day of January, 2016 and 1st day of July, 2016, and who did not draw any increment on 1st day of July, 2016, the next increment shall accrue on 1st day of January, 2017

Checkout for Rules position on Annual Increment after 7th Pay Commission implementation: (Rule 9 of 7th Pay Commission Revised Pay Rules 2016)

(ii) If an employee who is granted MACP in the year 2016 did not opt for moving his/her MACP pay fixation from the next date of increment i.e in January 2017, under FR 22 (I) (a) (1), he / she would end up with MACP Pay Fixation in pre-revised pay (6th CPC Pay) as on 1st March 2016 by exercising the option to defer the fixation 7th Pay Commission implemented pay until 1st March 2016 under Rule 5 of 7th Pay Commission Rules 2016.

(iii) Since, MACP in 7th Pay Commission Pay matrix takes effect from 25th July 2016, Employees who are granted financial upgradation under MACP from the year 2017, between 2nd January to 1st July, can have their pay fixed without exercising the option under FR22(I) a(1).

5. In this case, the most beneficial financial upgradation under MACP will be option chosen as detailed in 4 (i) above and the same is granted as follows.

Step 1: Grant of Annual increment of employee from 1st January 2017 will precede MACP fixation. Therefore, after annual increment his pay will be fixed at Rs. 56,900/- in the Index 7 Level 8.

Step 2: Then the employee will be provided with MACP Increment and therefore his pay will be placed at Rs. 58,600/ in Index 8 Level 8.

Step 3. Since there is no pay in the next level (level 9) which is equal to Rs. 58,600/-, the next higher basic pay in Index 5 Level 9 is Rs. 59,700/-. So, on MACP fixation the pay of employee will be fixed at Rs. 59,700/-.

The relevant portion of Pay Matrix is given below.


Grade Pay 4600 4800 5400
Entry Pay (EP) 17140 18150 20280
Level 7 8 9
Index 2.62 2.62 2.62
1 44900 47600 53100
2 46200 49000 54700
3 47600 50500 56300
4 49000 52000 58000
5 50500 53600 59700
6 52000 55200 61500
7 53600 56900 63300
8 55200 58600 65200
9 56900 60400 67200
10 58600 62200 69200
As per Rule 9 of 7th Pay commission Pay Rules 2016 The next date of annual increment in respect of this employee will be on 1st January 2018.
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Use of Indelible ink for over the counter exchange against old Rs.500/- and Rs.1000/- notes; Arrangements to make available adequate cash to the Postal Department for their use including the branch Post Offices.
The Prime Minister Shri Narendra Modi reviewed the position with regard to supply and availability of currency notes for the second consecutive day yesterday (14.11.2016) late evening. The Meeting, which went on till about midnight, was attended among others by the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley, Minister of State (Independent Charge) for Coal & Power, Shri Piyush Goyal, Principal Secretary to the Prime Minister Shri Nripendra Misra and Additional Principal Secretary to the Prime Minister, Dr. P.K.Mishra, Cabinet Secretary, Shri P.K.Sinha, Governor, RBI, Dr. Urjit R Patel, Secretaries from the Finance Ministry and other officials from PMO. A detailed review was made with regard to the steps that have been taken for smooth distribution and dispensing of cash through various channels of disbursement. 

After detailed discussions, the following decisions were taken: 

1. Highest importance should continue to be given to ensure convenience for the public. Effort should be made to avoid long queues in Bank branches, ATMs, etc. Already separate queues for senior citizens, divyang persons etc. have been announced. The drawing limits against Bank Accounts and from ATMs and over the cash disbursement have also been increased. It was noted that one of the primary reasons for long queues was that the same persons were visiting Bank branches, ATMs etc. repeatedly. It was also noted that certain unscrupulous elements are using the services of poor and innocent people to convert their black money into white. 

To prevent such misuse of the facility and enable larger number of persons to draw cash, indelible ink used during elections shall be used for over the counter exchange against old Rs.500/- and Rs.1000/- notes. This is not applicable in the case of withdrawal from or deposit into accounts. 

Cash disbursement points, especially Bank branches will be advised to put-up notices outside their branches advising people to avoid exchange of old notes over the counter multiple times. 

2. Already instructions have been issued permitting District Central Cooperative Banks (DCCBs) for cash withdrawal from existing accounts, subject to limits applicable in the case of Banks. Arrangements have been made to enhance the availability of cash with the DCCBs. 

3. Arrangements have been made to make available adequate cash to the Postal Department for their use including the branch Post Offices. There are 1.3 lakh branch Post Offices having wide coverage in the rural areas. Availability of adequate cash with the branch Post Offices will ensure wider coverage of the rural areas. 

4. Contributions are made in hundis and separate boxes in places of worship. Such establishments have their accounts with the Bank branches. Bank branches have been advised to approach the concerned authorities in these establishments to obtain the currency notes, especially of lower denomination and put them back into circulation. This will help in improving the circulation of lower denomination currency notes. 

5. Information has been received that there is sudden spurt in the quantum of deposits in several Jan Dhan Accounts. There are also reports of unscrupulous elements using Jan Dhan Accounts of poor and innocent persons to convert their black money into white. Such spurt in deposits will be looked into closely. Jan Dhan Account holders are requested not to allow their accounts to be misused by anyone. Further, it is also clarified that Jan Dhan Account holders will not be put to any kind of inconvenience for carrying-out their legitimate activities. 

6. Old Rs.500/- and Rs.1000/- notes are accumulating in Post Offices and Bank branches. Special efforts will be made to shift such notes and create space in the Post Offices and Bank branches to receive new notes. 

7. A high level Task Force consisting of representatives from various agencies is being set-up to monitor movement/receipt of fake notes in vulnerable areas. This Task Force will also take special efforts to monitor black money being deposited into Bank/Postal Accounts, especially under fictitious and other names. 

8. A technology team is being set-up to popularize the use of e-wallets. 

9. Government is closely monitoring the supply of essential commodities. 

10. A coordination group chaired by the Cabinet Secretary and including representatives of various Departments and major Banks is holding regular meetings to monitor the implementation of all the steps. 

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Submission of Life Certificate for Pensioners extended to 15.1.2017

All Central Government Pensioners are required to submit Annual Life Certificate to their banks during in November. Due to withdrawal of legal tender of existing Rs.500 and Rs.1000 bank notes, Finance Ministry decided to extend the period of submission of Annual Life Certificate for Central Government Pensioners.
The last date for submission of the annual life certificate for the Government Pensioners which is to be submitted in November every year has been extended up to January 15, 2017.