7th CPC Gazette Notification- MACP Scheme

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Recommendation of the Seventh Central Pay Commission

Decision of the Government

7th pay Commission Recommendation High Light Para

1

MACP will continue to be administered at 10, 20 and 30 years as before. In the new Pay Matrix, the employee will move to immediate next Level in hierarchy. Fixation of pay will follow the same principle as that for a regular promotion in the Pay Matrix. MACPS will continue to be applicable to all employees up to Higher Administrative Grade (HAG) level except members of Organized Group ‘A’ Services. (Para 5.1.44 of the Report)

Accepted

5.1.44 Although a number of demands were received for increasing the frequency of MACP as well as to enhance the financial benefit accruing out of it, this Commission feels that the inherent issues in the existing pay structure owing to which there was widespread resentment have been set right by way of rationalization of pay levels, abolition of pay band and grade pay  and introduction of a matrix based open pay structure. Hence, there is no justification for increasing the frequency of MACP and it will continue to be administered at 10, 20 and 30 years as before. In the new Pay matrix, the employees will move to the immediate next level in the hierarchy. Fixation of pay will follow the same principle as that for a regular promotion in the pay matrix. MACP will continue to be applicable to all employees up to HAG level except members of Organised Group `A’ Services where initial promotions up to NFSG are time bound and hence assured.

2

Benchmark for performance appraisal for promotion and financial ungrdation under MACPS to be enhanced from “Good” to “Very Good”. (Para 5.1.45 of the Report)

Accepted

5.1.45 There is, however, one significant aspect where this Commission feels that a change is required. This is with regard to the benchmark for performance appraisal for MACP as well as for regular promotion. The Commission recommends that this benchmark, in the interest of improving performance level, be enhanced from ‘Good’ to ‘Very Good.’ In addition, introduction of more stringent criteria such as clearing of departmental examinations or mandatory training before grant of MACP can also be considered by the government.

3

Withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular

promotion within the first 20 years of their service. (Para 5.1.46 of the Report)

Accepted

5.1.46 There is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course. The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted. This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments. The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service. This will act as a deterrent for complacent and inefficient employees. However, since this is not a penalty, the norms for penal action in disciplinary cases involving withholding increments will not be applicable in such cases. This will be treated as an “efficiency bar”. Additionally, for such employees there could be an option to leave service on similar terms and conditions as prescribed for voluntary retirement.