PAY FIXATION
Pay fixation generally occurs when an employee receives a promotion or is granted MACP (Modified Assured Career Progression). Before fixation of pay, the employee must submit an Option Form (Fourth Schedule) and an Undertaking (Fifth Schedule) as prescribed in the service rules.
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📄 Pay Fixation on Promotion or MACP
For a Government Servant, pay fixation is the process used for granting an additional increment during promotion or when MACP is sanctioned. The rule is simple: promotion or MACP-related pay fixation means one additional increment is granted. But the Government allows employees to choose when to avail that increment.
Let’s explore the available options:
- The date of joining in the promotional post
- The date of the normal increment after joining the promotional post
If the employee chooses to fix pay on the date of joining in the promotional post, one increment is granted in the level of the lower post. Then, the new pay is fitted into the level of the promotional post. If a similar pay exists in the new level, it will be fixed at that cell. Otherwise, the pay will be fixed at the next higher cell.
Alternatively, if the employee chooses to fix pay on the date of normal increment, the initial pay is fixed at par with the old pay but in the level of the promotional post. If a matching pay exists, it is fixed there. If not, then a lower cell is selected and the balance amount is added as Personal Pay to ensure the employee's pay remains unchanged initially.
Once the increment date arrives, the pay is re-fixed by granting two increments in the lower post — one as a normal increment and the other as a promotional increment. Then, the revised pay is again fitted in the level of the promotional post at the next higher cell (if required).
Note:
- An employee must usually exercise the option within one month of joining the promotional post.
- If the option is not exercised, pay is automatically fixed on the date of joining, and the next increment date shifts to the 1st of that month.
Disclaimer: Merely getting a promotion does not guarantee pay fixation. It depends on various factors such as the number of MACPs sanctioned, pay upgradation due to selection to another cadre, etc.
📌 Case-I: Pay Fixation on Date of Joining in Promotional Post
If the employee opts to fix pay on the date of promotion, generally an increment is granted in the lower post and the resulting pay is fitted into the level of the promotional post.
Example-1:
Suppose Mr. Rajiv, who works as a Senior Assistant (Level-08), is promoted to Head Clerk (Level-09). He was drawing Rs. 29,600 (Cell 06, Level-08) before the promotion. Let’s fix his pay:
Extract from Pay Matrix:
| Cell No. | Level - 8 | Level - 9 |
|---|---|---|
| 1 | 25,500 | 29,200 |
| 2 | 26,300 | 30,100 |
| 3 | 27,100 | 31,000 |
| 4 | 27,900 | 31,900 |
| 5 | 28,700 | 32,900 |
| 6 | 29,600 | 33,900 |
| 7 | 30,500 | 34,900 |
| 8 | 31,400 | 35,900 |
Solution:
Pay before promotion = Rs. 29,600 (Cell 06, Level-08)
After one promotional increment, pay becomes Rs. 30,500 (Cell 07, Level-08)
Now fit Rs. 30,500 in Level-09. There is no exact match, so find the next higher cell. Rs. 31,000 (Cell 03, Level-09) is the closest above. Hence:
Final Fixed Pay = Rs. 31,000 (Cell 03, Level-09)
🔜 Case-II: Pay Fixation on Date of Normal Increment
(Will be updated shortly...)
Useful Tools & Resources:
👉 To fix your pay using FormatPotter's auto calculator:
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📂 Access all Pay Fixation Forms / Applications:
CLICK HERE
📚 To access Odisha Service Code Rules:
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