Absorption of Personal Pay on Move Over or Promotion 17.04.1994
OFFICE MEMORANDUM
Subject: Absorption of Personal Pay
Reference your letter No.PR(C)/BPS-83-87-91/Vol. XI/34+5, dated 7.3.94, on the subject noted above.
Finance Department is of the view that the Advance increments on obtaining higher qualification, when a civil servant has already reached the maximum of the scale are convertible to Personal pay equal to admissible advance increments). to be absorbed on move over promotion to next scale and this specific personal pay is not specified to be absorbed in future increments of the move over scale. Hence, it is merely to be absorbed in toto as the element of pay on the stages of the moved over/promotion scale of the incumbent.
Absorption of Personal Pay on Move Over or Promotion (as of 17.04.1994)
When we talk about Personal Pay, we are referring to a special kind of allowance or salary that is granted to an employee. This pay may be given for a specific reason, such as a temporary increase in pay to adjust for differences between old and new pay scales, or for personal achievements. However, when an employee is moved to a new position or promoted, the absorption of this personal pay becomes important.
Absorption of Personal Pay
Absorption means that when an employee is promoted or moved to a higher position, the personal pay that they have been receiving will be included in their new pay structure. This means that the extra money the employee was receiving as personal pay will not be given separately anymore. Instead, it will be absorbed into their new salary or the new pay scale they receive after the promotion or move.
Why Absorption Happens
- To Maintain Fairness: If personal pay is not absorbed, it could lead to a situation where employees receive more money than others in the same position who have not been given personal pay earlier. This could create inequality.
- To Avoid Overpayments: Without absorption, an employee might continue receiving personal pay even after moving to a higher position with a better salary, which could lead to a much higher salary than justified by the new role.
- To Simplify Pay Structure: Absorption helps in streamlining the salary system by making sure that all employees in the same role or grade are paid similarly, without unnecessary complexities.
Personal Pay on Promotion (As of 17.04.1994)
The date, 17.04.1994, marks a policy decision or directive that may have been implemented regarding the absorption of personal pay on promotion or move over. As per this date, any government employees receiving personal pay would have that pay absorbed into their new salary upon promotion.
This means that if an employee was promoted on or after this date, the personal pay they were receiving would be included in the new pay scale. They would no longer receive personal pay as a separate component. Instead, their new salary would reflect their promotion, with the personal pay included.
Impact on Employees
- Higher Salary After Promotion: While the personal pay is absorbed, the employee would usually end up with a higher salary overall, as they have been promoted to a higher position or moved to a better grade. The promotion itself generally comes with a salary increase.
- No Double Benefits: Employees cannot receive both a promotion salary and continue receiving personal pay separately. Absorbing the personal pay ensures there is no double benefit.
- Fairness Across Employees: All employees in similar roles or pay scales after a move or promotion will receive similar pay, helping to avoid confusion and maintain equality in salary structures.
Conclusion
In summary, the absorption of personal pay on move over or promotion, as introduced on 17.04.1994, means that personal pay will no longer be paid separately after an employee is promoted. It is instead added to the new salary. This process ensures fairness, prevents overpayments, and helps streamline the overall pay structure. Employees will benefit from the increase in salary due to the promotion, and the system becomes more transparent. The policy ensures that no employee is unfairly advantaged or disadvantaged due to personal pay when moving to a higher position.
