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FR SR (PAY) RULES - CONTINUED

PAY FIXATION

Consequent to the acceptance of the recommendations of the Seventh Pay Commission, the Govt. of
India notified its decisions on the report,, vide Notification No.GI M.F. No.1-2/2016-IC, dated 25 th July, 2016.

The existing Pay Bands and Grade Pays as in force immediately prior to the notification, have been
replaced with a Pay Matrix. New functional Levels have been arrived at by merging the Grade Pay with the Pay
in the Pay Band. All the existing levels have been subsumed in the new structure. The new pay structure has
been devised in the form of a PAY MATRIX to provide complete transparency regarding pay progression.

The Basic Pay on the date of implementation i.e., 1.1.2016 is multiplied by a factor of 2.57, rounded
off to the nearest rupee and the figure arrived at is located in the new Pay Matrix in the level that corresponds
to the employee’s Grade Pay on that date. If the figure corresponds to a cell, it is fixed there. If not,
immediate next higher cell will be the new pay.

The PAY MATRIX comprises of two dimensions. It has a Horizontal Range in which each level
corresponds to a functional role in the hierarchy and has been assigned the numbers 1,2 and 3 and so on till
18. The vertical range for each level denotes Pay Progression within that level. These indicate the steps of
annual financial progression of three per cent within each level. The starting point of the Matrix is the
minimum pay.

The Level of posts shall be determined in accordance with the various Levels as assigned to the
corresponding existing Pay Band and Grade Pay or scale as specified in the Pay Matrix.

The pay of employees appointed by direct recruitment on or after 1.1.2016 shall be fixed at the
minimum pay or the first Cell in the Level, applicable to the post to which such persons are appointed.

As per recommendations of the VII CPC Report, the existing provisions on pay fixation on
promotion/appointment have been changed radically with effect from 1.1.2016. Instead of running Pay Bands
and Grade Pay with regular increments, 16 levels of pay have been introduced for all categories of employees
in Groups ‘A’, ‘B’ and ‘C’. In addition, there are two levels one for Apex Scale and one for Cabinet Secretary.

There shall be two dates for grant of increments namely, 1 st January and 1st July of every year,
instead of existing one date i.e. 1st July; provided that an employee shall be entitled to only one annual
increment on either of these two dates, depending on the date of his appointment, promotion or grant of
financial upgradation.

The increment in respect of an employee appointed or promoted or granted financial upgradation

during the period between the 2nd day of January and 1st day of July (both inclusive) shall be granted on 1 st
day of January and the increment in respect of an employee appointed or promoted or granted financial
upgradation during the period between 2nd day of July and 1st day of January (both inclusive) shall be granted
on 1st day of July. The increments are as specified in the vertical Cells of the applicable Level in the Pay
Matrix. [Rules 9 and 10 of RP Rules, 2016]

Note: In the normal course, if a Govt. servant was to join a post on appointment/promotion on 1 st January of
a year, but he could not join the post ONLY because 1 st January happened to be a Sunday or Gazetted
holiday, the Govt. servant who join the post on the 1 st working day of the year will be treated to have
completed 6 months of service on 1st of July of that year for the purpose of granting annual increment on that
day. OM dated 13.3.2009.

Mentioned below are the rules and circumstances which necessitates Fixation of Pay:-
Circumstances which give rise to the fixation of pay are:
1. First appointment to any post;
2. Transfer/Promotion from one post to another;
3. On being posted on Deputation (Cadre post to Ex-Cadre post)
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4. On promotion from one Ex-Cadre post to another.
5. On being posted to a lower post on one’s own request;
6. On a Pensioner being re-employed, etc.

FR 22(I)(a)(1) deals with fixation of pay of a Govt. servant holding a non-tenure post on
promotion/appointment to a higher post. (Rule 13 of CCS (RP) Rules)
FR 22(I)(a)(2) deals with fixation of pay of a Government servant holding a non-tenure post on
transfer/appointment to another post which is not higher than the post which he was holding.
FR 22(I)(a)(3) deals with fixation of pay of a Government servant holding a post, on transfer at his
own request, to a post with the maximum pay of that post lower than his pay in the post held by him on
regular basis.
FR 22(I)(b) deals with fixation of pay of a Government servant on his first appointment in Government
service.
FR 22(II), deals with grant of pro forma officiating promotion under NEXT BELOW RULE to a
Government servant who is working on deputation under the Government outside his regular line of service or
on foreign service.
FR 22(III) stipulates that appointment or promotion of a Government servant to a post in the same or
identical time-scale of pay should not be deemed to involve the assumption of duties and responsibilities of
greater importance for the purpose of initial fixation of his pay.
FR 22(IV) stipulates that when a Government servant, while holding an ex-cadre post, is promoted or
appointed regularly to a post in his cadre, his pay in the new cadre post should be fixed with reference to his
presumptive pay in the old cadre post which he would have held but for his holding the ex cadre post.
FR 26 regulates the increment of a Govt. Servant.
FR 27 deals with fixation of Pay of a Government Servant at a stage higher than the one admissible
under normal Pay Fixation Rules by grant of PREMATURE INCREMENTS in special circumstances.
FR 35 deals with fixation of pay of an officiating Government servant at an amount less than that
which is admissible under FR 22.
[*Temporary post means a post carrying a definite rate of pay sanctioned for a limited period, whereas a
tenure post means a permanent post which an individual Government Servant may not hold for more than a
limited period]

New appointments after 1.1.2016: Initial pay of persons newly appointed after 1.1.2016, will be fixed at
the minimum of the Level in the Pay Matrix.

PAY FIXED ON PROMOTION OR APPOINTMENT FROM A POST TO A HIGHER POST

At the time of promotion on or after 1.1.2016, the fixation of pay in case of promotion from one Level to
another in the revised pay structure shall be made as below:-
1. One increment shall be given in the Level from which the employee is promoted and be placed
at a cell equal to the figure so arrived at in Level of the post to which promoted. If no such cell
is available in the Level to which promoted, he shall be placed at the next higher cell in that
Level.
2. In case of a Govt. servant receiving Non Practicing Allowance, his Basic Pay plus Non Practising
Allowance shall not exceed the average of basic pay of the revised scale applicable to the Apex
Level and the Level of the Cabinet Secretary, i.e. Rs.2,37,500/-
[Rule 13 of CCS(RP) Rules, 2016 and OM, dated 7.7.2017]

Illustration: A Govt. servant who is drawing Rs.88,700 in Level 12 is promoted to a higher post in the
Pay Level 13. His pay will be fixed as:
Basic Pay in the revised pay structure in Level 12 88,700
Pay after giving one increment in Level 12 91,400
In this case, the pay after adding the increment is less than the minimum of higher Pay Level 13 i.e.
1,23,100. Hence, his pay has been stepped up to the minimum and his pay in the promoted post is
Rs.1,23,100. [Rule 13(i) of CCS(RP) Rules, 2016]

Fixation of pay on promotion from the Date of Next Increment(DNI):

Option is available under provisions of FR 22(I)(a)(1) for fixation of pay from DNI. From the date of
promotion till his DNI, he/She shall be placed in the next higher cell in the Level to which he/She is
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promoted. Subsequently on DNI, his/her pay will be refixed and two increments may be granted in the Level
from which promoted and shall be placed at a cell equal to, if available or at the next higher cell in that
Level of the post to which he/She is promoted. [FR 22, GIO(2-A)]
Option is available for fixation of pay on MACP(Modified Assured Career Progression Scheme) from the
Date of Next Increment in the lower post and fixation of pay from DNI, will be done as illustrated in OM, dated
27.7.2017 [OM dt.20.9.2018]

Bunching of stages during PAY REVISION: In cases where, in revision of pay, the pay of Govt. servants
drawing pay at two or more stages in pre-revised Pay Band and Grade Pay, get fixed at same cell in the
applicable Level in the new Pay Matrix, one additional increment shall be given for every two stages bunched
and the pay of Govt. servant drawing higher pay in pre-revised structure shall be fixed at the next vertical cell
in the applicable Level.
For this purpose, pay drawn by two Govt. servants in a given Pay Band and Grade Pay where the
higher pay is at least 3% more than the lower pay shall constitute two stages. Officers drawing pay where
the difference is less than 3% shall not be entitled for this bunching.

Revision of pay of employees stagnating at the maximum of the Pay Band and Grade Pay in pre-
revised structure: In case of persons who had been drawing maximum of the applicable Pay Band and
Grade Pay for more than two years as on 1.1.2016, one increment in the applicable Level in the Pay Matrix
shall be granted on 1.1.2016 for every two completed years of stagnation at the maximum of the said Pay
Band and Grade Pay. Grant of additional increment shall be subject to condition that the pay arrived at after
grant of such increment does not exceed the maximum at the applicable Level in the Pay Matrix.
After fixation of pay on 1.1.2016, the date of increment shall be regulated as per the provisions of
Rule 10 of CCS (RP) Rules, 2016. [OM dated 7.9.2016]

Fixation of Pay in Ex-Cadre Post (Ex-Cadre pay)

FR 22(I)(a)(1) applies not only in respect of promotions to higher appointments to another post (carrying
higher responsibility than the post held by the Govt. Servant) in the direct line of promotion, but also for
appointments to another post, outside the ordinary line which is generally termed as ex-cadre appointment,
provided that in respect of that ex-cadre appointment, the GS elects to draw pay in the time-scale of the ex-
cadre post. However, the option to have the pay fixed in the ex-cadre post on the date of accrual of NEXT
INCREMENT in the cadre post is NOT AVAILABLE.

From one ex-cadre post to another ex-cadre post: In Cases of appointment from one ex-cadre post to
another ex-cadre post where the official opts to draw pay in the scale of ex-cadre post, the pay in the 2 nd or
subsequent ex-cadre post should be fixed under the normal rules i.e. FR 22(I)(a)(1) or (a) (2) with reference
to the pay in the CADRE POST only.

If on the appointment to a Second or subsequent ex-cadre post in a higher pay scale than that of the
previous ex-cadre post, the pay fixed under normal rules w.r.to the pay in the cadre-post happens to be less
than that drawn in the previous ex-cadre post, the difference may be allowed as PERSONAL PAY to be
absorbed in future increases in Pay.

Illustration: An Assistant Accounts Officer of the Department of Posts drawing a pay of Rs.44,900 in the Pay
Level 6 is appointed as a Section Officer (ex-cadre) in the Central Secretariat in the Pay Level 8. The post of
Section Officer is obviously not in the direct line of promotion of Assistant Accounts officer. In the post of SO,
the AAO has the choice to elect either his pay as AAO plus a Deputation Allowance of 10% of such pay in the
Pay Level or pay fixed in the Pay Level 8 of the post of SO under normal rules. If the AAO chooses the latter
alternative, then his pay in the scale will be fixed as under:-
Pay as AAO on the date of deputation - 44,900
Pay after adding one increment in Level 6 - 46,200
Pay fixed in the ex-cadre post (SO) - 47,600

FR 22(I)(a)(1) will not apply to cases of Govt. servants appointed to higher posts through UPSC and in those
cases where the UPSC has made a specific recommendation regarding pay to be given. In cases where the
UPSC recommends, that the pay should be fixed “under normal rules”, then the pay may be fixed under FR
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22(I)(a)(1) subject to fulfillment of conditions of assumption of higher responsibilities. In such cases, the
benefit of choosing the date of fixation is not admissible. In all cases of appointment through UPSC, the
manner in which the Pay to be fixed should be indicated. [GIO(9), FR 22]

Application of FR 22(I)(a)(1) to STATE GOVT. SERVANTS on appointment to higher post in the

GoI: When a State Govt. servant is appointed to a post under the Central Government and the post carries
duties and responsibilities of greater importance than those attaching to the post held by him under State
Government, the initial pay may be fixed under FR 22(I)(a)(1). [FR 22]

REMOVAL OF ANOMALIES OR STEPPING UP OF PAY

In cases where a senior Govt. servant promoted to a higher post before 1.1.2016, draws less pay in
the revised pay structure than his junior who is promoted to the higher post on or after 1.1.2016, the pay of
the senior Government Servant should be stepped up to an amount equal to the pay as fixed for his junior in
that higher post. The stepping up should be done w.e.f. the date of promotion of the junior Govt. servant,
subject to following conditions:-
a) Both Junior and Senior should belong to same cadre and promoted to posts identical in the same
cadre.
b) The Pre-revised scale of pay of the lower post and the Revised GRADE PAY of the higher post should
be identical;
c) The existing pay structure and the one to which they are promoted should be identical;
d) The Senior Govt. Servant should have been drawing equal or more pay than the junior, at the time of
promotion;
e) The anomaly should be directly related to the application of the provisions of FR 22 or any other rule
regulating pay fixation on such promotion in the Revised Pay Structure.
f) Advancement of DNI of senior is admissible only if he was drawing more pay than the junior in the
pre-revised scale and his pay in the revised scale is fixed at the same stage as that of his junior.
In case the Junior Officer was drawing more pay than the senior by virtue of any advance increments,
the provisions of this rule shall not be invoked to step up the pay of Senior Officer.

Stepping-up for the second time:

The stepping up of pay is admissible with reference to the first junior (not necessarily immediate
junior) on only one occasion; but if the junior concerned gets his pay stepped up at par with one junior to
him, then the pay of the senior may again be stepped up.
(e.g.)The pay of Senior “X” is stepped up with reference to the pay of his first junior “Y” and at a later
date the pay of “Y” is stepped up with reference to another junior “Z”. Consequent on the stepping up of pay
of the junior “Y” w.r.t. “Z”, the senior “X” may happen draw lesser pay than his junior “Y”. In such cases, the
pay of the Senior “X” may again be stepped up at par with his Junior “Y” subject to fulfillment of all other
conditions (GIO (24) below FR 22).

FIXATION OF PAY ON APPOINTMENT/TRANSFER TO ANOTHER POST NOT INVOLVING HIGHER

RESPONSIBILITIES INCLUDING NON-FUNCTIONAL SELECTION GRADE

Government servant is appointed from one post to another where the appointment to the new post
does not involve assumption of duties and responsibilities of greater importance than those
attached to the old post including appointment to a non-functional selection grade, his pay will remain
unchanged. If there is no such equal stage in the new post, his initial pay in the new post will be fixed at the
stage next above his pay in respect of the old post and he will draw his next increment in the new post on
completion of the period when an increment is earned in the time scale of the new post.[FR 22(I)(a)(2)]

[Non-Functional Selection Grade: Applicable in the case of senior officers stagnating long without getting
promotion, an in-between stage is created to accommodate them till such time they get their normal due.
Those posts created for such reason do not have any function attached to the post. They will perform the
duties of the posts in which they are stagnating, e.g., 14,300 in case of Civil Servants]

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FIXATION OF PAY WHEN TRANSFERRED TO A LOWER SCALE AT ONE’S OWN REQUEST FR 15(a)

In case of transfer to a lower Level of post in the Pay Matrix, the pay of the Government Servant
holding a post on regular basis will be fixed in the revised pay structure at the stage equal to the pay
drawn by him in the higher level of post held him. If no such stage is available, his pay will be fixed next
below in the Lower level and the difference in pay may be granted as Personal Pay to be absorbed in future
increments. If the maximum of the lower post happens to be lesser than the pay being drawn by him in his
present post, his pay will be fixed at the maximum of lower post.

BENEFIT OF PAST SERVICE CONSEQUENT TO TECHNICAL RESIGNATION

In cases where Govt. servants apply for posts in the same or other departments through proper
channel and on selection, they are asked to resign the previous posts for administrative reasons, the benefit of
past service may, if otherwise admissible under rules e given for purposes of fixation of pay in the new post
treating the resignation as ‘technical formality’. The pay in such cases may be fixed under FR 27. This benefit
is admissible also in cases where the Govt. servants had applied for posts in the same or other Departments
before joining Government service and on that account the application was not routed through proper channel
subject to the following conditions:
1. The Govt. servant at the time of his joining should intimate the details of such application
immediately on their joining.
2. The Govt. servant at the time of resignation should specifically make a request, indicating the
dates that he is resigning to take up another appointment under the Government/Govt.
organisation for which he applied before joining the Govt. service and that his resignation may be
treated as ‘technical’ resignation.
3. The authority accepting the resignation should satisfy itself that had the employee been in service
on the date of application for the post mentioned by the employee, his application would have
been forwarded through proper channel.

PROFORMA PROMOTION OR 'NEXT BELOW RULE'(NBR).

NBR FR 22 (I) (ii) is not, by itself, an independent rule governing fixation of pay. It sets out
guiding principles to protect the interests of the Govt. servant who is working outside the Cadre. The
rationale is that simply because he has gone out of the Department, he should not lose promotions, which
he would have earned had he not gone on deputation, or on foreign service. Such officials are given Proforma
officiating Promotion. For giving the benefit of NBR, a declaration to the effect that “the post held by him is
outside the normal line” is necessary. The powers to issue such a declaration and give protection of pay,
have been delegated to the Ministries of the Government of India.

The salient features of NBR are :-

1. The officer to whom the NBR benefit is given should be considered fit for promotion in the regular line.
2. All the seniors should have been promoted and drawing pay in higher grades or still higher grades unless
they were superseded due to unsuitability.
3. The officer next junior to him should also have been promoted or if he is by passed due to unsuitability,
etc., at least one still junior should have been promoted.
4. The benefit is given to only one person against the vacancy vide "ONE FOR ONE" principle, even though
more than one officer might be serving outside their cadre.
5. The benefit can still be given if no junior is eligible for promotion, provided there is a clear vacancy and
no ad hoc promotion has been made.
6. The vacancy against which the proforma promotion is to be allowed, should be of more than 90 days
duration i.e., a regular vacancy.
The benefits accrued are :-
(i) The officer is entitled to draw the higher rate of pay to which he is entitled in the regular line, while
holding the post outside his cadre
(ii) He can count the period of service from the date of NBR for increments in the post in the regular line.
(iii) He may continue to hold the post, outside his regular line, so long as his pay does not exceed the
maximum of the post which he is holding and when his pay exceeds the maximum, he shall be
reverted to his parent grade within six months.
A Govt. servant who does not require the benefit of ‘Next Below Rule’ for the reason that the post held by him
is on a scale identical with the scale of pay of the post in the regular line to which he is given pro-forma
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promotion, can pass down the benefit to the next senior most officer outside the regular line, provided that
officer is senior to the junior promoted in the regular line.[GIOs under FR 22/FR 113]

Illustration: A,B,C,D,E and F in tht order of seniority in the grade of Assistant Accounts Officer’s Postal are
all on deputation to other Ministries and Public Sector Undertakings, with effect from 1.4.2016. Consequent on
Mr.X an Accounts Officer of the Postal Directorate, retiring from 31.10.2016, Mr. G another AAO, who is junior
to all the six AAOs on deputation, is promoted as officiating Accounts Officer with effect from 1.11.2016.
Though ABCDEF are senior to G, Mr.A alone will get the benefit.

GRANT OF PREMATURE INCREMENTS TO A GOVT. SERVANT (FR 27)

Subject to general or special rules made by President, an authority who is competent to create a
post on the same cadre/on the same scale of pay, may grant premature increment, under FR 27, to a
Government Servant on the same scale of pay.
The primary objective is to extricate or overcome the hardship or extreme loss of emoluments
arising out of normal fixation of Pay Rules, under FR 22 or due to revision of Scale of Pay. In such cases,
the Competent Authority can fix a pay higher than the one fixed under the normal Rules by grant of
premature increments. This provision should be used with caution. FR 27 should NOT be invoked in the
following cases:-
1. As a reward for meritorious work.
2. In disregard of the advice of MOF given in any individual case on fixation of pay.
3. In disregard of normal fixation of pay rules unless the extreme hardship is established.
4. To take into account the Special Pay or Personal Pay OR duty (Deputation) Allowance or other
perquisites.
5. In disregard of advice, if any, of UPSC. (FR 27). The question should again be referred to UPSC.
However, these restrictions do not affect the use of FR 27 where specifically allowed under special
orders of Government already in existence (GIO(5), FR-27)
Detailed reasons should be on the concerned file. But it need not be mentioned in the order.
Normally, it should not exceed FIVE increments.
In the case of initial appointment, FR 27 can be invoked, having regard to educational qualifications,
experience, last pay drawn and so on.

Effect of FR 27 on Technical Resignation

It is well known that the benefit of past service is allowed for the fixation of Pay in the case of
“Technical Resignation”. This benefit is also admissible to Government servants who had applied for posts in
same or other Departments before joining service and on that account the application could not be routed
through proper channel. The pay in such case may be fixed under FR-27 (GIO(4), FR 22).

Wrong Fixation under FR-27: Once the fixation done by Competent authority under FR-27, is found, on a
later date, to have been done on an incorrect data, that authority is not competent to reduce the same
subsequently. [GIO(13), FR-27]

FR-35
Pay of an officiating Government Servant may be fixed at an amount less than that admissible
under these rules. It is resorted to appointments by transfer on deputation. It should not be invoked in
respect of Regular Cadre promotion where –
a. the employee becomes due for promotion;
b. the employee falls within the zone of consideration and fulfils all qualifications prescribed for
promotion.
Restriction under FR-35 shall not exceed limits prescribed by the Government of India from time to time.
After implementation of VII CPC, the pay under FR 35 shall be restricted in a manner so that the
increase in the Basic Pay of the post held by the Government servant (prior to the officiating appointment)
shall not exceed 12.5% subject to a maximum of Rs.6700 per month. Any increase in excess of 12.5% of the
Basic Pay with a further ceiling of Rs.6,700 per month shall be treated as substantial increase for the
purposes of FR 35.

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INCREMENT
Increment means annual increase in pay. After implementation of VII CPC report, there shall be two
dates for grant of increments namely, 1st January and 1st July of every year, instead of existing one date i.e. 1 st
July; provided that an employee shall be entitled to only one annual increment on either of these two dates,
depending on the date of his appointment, promotion or grant of financial upgradation.
The increment in respect of an employee appointed or promoted or granted financial upgradation
during the period between the 2nd day of January and 1st day of July (both inclusive) shall be granted on 1 st
day of January and the increment in respect of an employee appointed or promoted or granted financial
upgradation during the period between 2nd day of July and 1st day of January (both inclusive) shall be granted
on 1st day of July. The increments are as specified in the vertical Cells of the applicable Level in the Pay
Matrix. [Rules 9 and 10 of RP Rules, 2016]
Note: In the normal course, if a Govt. servant was to join a post in a grade pay on
appointment/promotion on 1st January of a year, but he could not join the post ONLY because 1 st January
happened to be a Sunday or Gazetted holiday, the Govt. servant who join the post on the 1 st working day of
the year will be treated to have completed 6 months of service on 1 st of July of that year for the purpose of
granting annual increment on that day. OM dated 13.3.2009.

The following service counts for increment:-

i) All period of duty
ii) Service in another post, other than a post carrying less pay.
iii) All kinds of leave, other than Extra Ordinary Leave.
iv) EOL granted (a) on Medical Certificate (b) otherwise than on Medical Certificate due to the inability of
the Government Servant to join duty on account of civil commotion (c) for prosecuting higher
technical and scientific studies.
v) Deputation out of India.
vi) Foreign Service.
vii) Joining time.
viii) Period of training undergone before appointment, whether on stipend or otherwise.

In the case of Government Servants proceeding on leave or going on deputation out of India while
officiating in a post, a certificate from the competent authority to the effect that the Government Servant
would have continued to officiate but for proceeding on leave/going on deputation out of India is necessary to
count the period at (iii), (iv) & (v) above.
Withholding of increment: A competent Disciplinary Authority can impose a penalty of withholding
increment of a Government Servant in two ways, i.e., with cumulative effect or without cumulative effect. If
it is with cumulative effect, the entire period of the punishment, is lost so far as earning further increment is
concerned and will put the Government Servant to a recurring loss. If it is without cumulative effect, the loss
will be for a temporary period of the punishment and after the punishment is over, the withheld increments
will be restored and the future increments drawn on due dates.
Advance Increments: An authority who is competent to create a post may grant advance increments(pre-
mature increments) not only to the incumbent of the post created under his own powers but also to those
who appointed to other posts in the same cadre on the same scale of pay created with the concurrence of
higher authorities. This power to grant advance increments is invoked also in cases where the pay of a
Government Servant has to be fixed under certain circumstances & also to remove anomalies in fixation of
pay[FR-27].

‘NEXT INCREMENT’ AND ‘ONE INCREMENT’

Where an order of penalty purports to withhold the ‘next increment’ for a specified period, it implies
that all the increments falling due during that period would be withheld, because without getting the next
increment, an official cannot get increments falling after the ‘next increment’. Thus if it is intended that only
one increment should be withheld over a specified period it should not be stated in the order that ‘next
increment’ be withheld for a specified period. The proper course of action in such a case would be to
specifically order that ‘one increment’ be withheld for a specified period. Such an order will have the effect of
withholding only one increment and the official concerned will be able to draw the subsequent increments
falling during the period, of course, depressed by the ‘one increment’ which is withheld. [GID(1) under FR 24]

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FIXATION OF PAY ON RE-EMPLOYMENT
Pensioners who are re-employed shall be allowed to draw pay only in the prescribed scales of pay for
the posts in which they are re-employed. No protection of pay of the posts held by them prior to retirement
shall be given.
In the case of Ex-servicemen and Civilian officers who retired before attaining the age of 55 years and
who are re-employed, their pension shall be ignored for initial pay fixation to the following extent:-
(i) In the case of Commissioned Officers of Defence Service and Officers holding Group ‘A’ posts in the
Civil side at the time of retirement, the first Rs.15,000 of pension; and
(ii) In the case of Defence personnel below the rank of Commissioned Officers and Officers holding Group
‘B’ or lower posts in the Civil side at the time of retirement, the entire pension.
[Pension is fully ignored means that PENSION is not deducted from the re-employed pay]
2(i) In all cases where the pension is fully ignored, the initial pay on re-employment shall be fixed at the
minimum or the first Cell in the Level, applicable to the post to which he is appointed, in the revised pay
structure of pay of the re-employed post as per Rule 8 of CCS(RP) Rules, 2016.
(ii) In cases where the entire pension and pensionary benefits are not ignored for pay fixation, the initial
pay on re-employment shall be fixed at the same stage as the last basic pay drawn before retirement. If
there is no such stage in the re-employed post, the pay shall be fixed at the stage next above that pay. If the
maximum pay in Level applicable to the post in which a pensioner is re-employed is less than the last
pay drawn by him before retirement, his initial pay shall be fixed at the maximum pay of the re-employed
post. Similarly, if the minimum pay is more than the last pay drawn by him before retirement, his initial pay
may be fixed at the minimum pay of the re-employed post. The benefit of ignoring the whole pension or
first Rs.15,000 of pension, is admissible only in the case of pensioners who retire before attaining the age of
55 years. In other cases, the whole amount of pension will be taken into account for the purpose of initial
fixation of pay in the re-employed post.
(iii) The re-employed pensioner will in addition to the pay of the re-employed post be permitted to draw
separately any pension sanctioned to him and to retain any other form of retirement benefits, viz.,
Commutation Amount, Retirement Gratuity. However, Dearness Relief on pension will not be admissible during
the period of re-employment.
iv) Once the initial pay of a re-employed pensioner has been fixed in the manner indicated above, he may
be allowed to draw normal increments as per provisions of Rules 9 and 10 of CCS(RP) Rules, 2016. The pay
and gross pension taken together should not at any time exceed Rs.2,25,000 p.m.
Drawal of Allowances: The drawl of various allowances, namely, DA, HRA, etc., and other benefits based on
pay shall be regulated with reference to the pay that is fixed on re-employment. Pay for the purpose of grant
of these allowances and benefits will be the pay fixed before deducting the non-ignorable part of pension.
[Paras 4,5 and 9 of CCS(Fixation of Pay of re-employed pensioners) Orders 1986, read with OM No.3/4/97-
Estt.(Pay-II), dated the 7th November, 1997 and GIDs (13) and (14) thereon and OM dated 1.5.2017]

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