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7th Pay Commission MACP Pay fixation : How to fix Pay on MACP ?

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.

Note for freshers
What is MACP?
This is a non-functional financial upgradation scheme meant for central government employees on completion of 10th, 20th and 30th Years of service when no promotion is granted during this period

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. 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.

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

(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.

click here to reach the full 7th Pay commission Pay matrix

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.

Source: Gconnect

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