Fixation of Pay on Promotion – Exercise of Option dt. 27.06.2024
OFFICE MEMORANDUM
Fixation of Pay on Promotion
I am directed to refer to your letter No.IT(NYGEN/1-5/2016(CKL) dated 15.12.2022 to the subject cited above.
2. The case has been examined. Finance Department observes that there are three scenario of fixation of pay on promotion/upgradation between 2~4 June to 30t November. The pay fixation in three scenario will be as under:
| 0 | Pay Fixation on Upgradation | The cases of fixation of pay on upgradation will be in light of FD’s letter No FD.PC 3-1/83-Pt.ll dated 06.05.1986 (copy enclosed) which provides that: “where a post has been upgraded between 2a4 June to 30*November of a calendar year, the incumbent of such a post should be allowed re-fixation of pay with reference to his notional pay in the lower scale on 1″ December of that year subject to the exercise of an option by the incumbent of the post, provided that other conditions of earning the increment are fulfilled. This order would take immediate effect.” |
| ii) | Pay fixation on Promotion | The cases of fixation of pay on promotion will be dealt under Rule 10(3) of Pay Revision Rules, 1977 (copy enclosed) provides that: “If a civil servant before reaching the maximum of a Revised National pay Scale is promoted to a higher pay scale between the 2M June and the 30° November of a calendar year and his initial pay in the latter scale is fixed with reference to his pay in the former scale, may, at his option get his pay re-fixed in the higher scale with effect from the 1″ day of December of the year of his promotion with reference to his presumptive pay on that date in his pre-promotion scale.” |
| iii) | Pay fixation on Post Dating Promotion | The cases of fixation of pay on postdating promotion will be deal: under Rule 4,4 Read with NOTE-11 CSR (Punjab) VoL.l,Part-1(copy enclosed) which provides that: “OPTION must be exercised within six months from the date of order making promotion / selection grade and when once exercised must be final.” |
3. Finance Department further observes that there is no time limitation in first two scenario however, the last scenario has a time limitation of six month for exercising an option.
As refer to the object noted above und to state that the question of allowing increment in the lower scale, on the upgradation of a post to higher octane between 2nd June to 20th November of & calendar year has been under consideration in this department.
2. It has been decided, after due consideration, that her post has been upgraded between 2nd June to 30th November of calendar year, the incumbent of such post should be allowed refixation of pay with reference to his notional pay in the lower scale on 1st December of that year subject to the exercise of un option the incumbent of the pot, provided that other conditions of warning. This order would take immediate effect.
Fixation of Pay on Promotion – Exercise of Option (dt. 27.06.2024)
When an employee is promoted, they have the right to exercise an option regarding how their pay will be fixed. The order dated 27.06.2024 outlines the guidelines for this process. On promotion, an employee can choose to either have their pay fixed immediately from the date of promotion or defer the fixation to the date of their next increment in their current pay scale. This option allows employees to maximize their financial benefits, depending on their personal circumstances.
If an employee opts for immediate pay fixation, their salary will be recalculated based on the higher responsibilities of the new post. This is done by adding a fixed percentage to their current pay. On the other hand, by delaying pay fixation until the next increment date, the employee continues to receive the current salary until the increment arrives, after which the revised pay will be calculated, taking into account both the increment and the promotion.
The employee must submit their option within a specified period, usually within a month from the promotion date. If they fail to submit the option, the default rule is to fix the pay from the date of promotion. Once the option is exercised, it becomes final and cannot be changed.
Conclusion: The fixation of pay on promotion offers flexibility to employees in managing their financial transitions. The decision to either opt for immediate pay fixation or defer it to the increment date depends on individual needs. Employees should carefully consider their option, as it can significantly affect their earnings in both the short and long term.
