Grant of financial upgradation under ACP & MACP schemes for the central Government Civilian Employees including Railway employees
The Secretary / DoP&T
(Department of personnel PG & pension),
Department of personnel & Training,
Sub: Grant of financial upgradation under ACP & MACP schemes for the central Government Civilian Employees including Railway employees – reg.
- on perusal of the order of the Apex court, it is found that the Hon’ble Apex court has held that the MACP is a part of pay structure recommended by the 6th CPC, the same cannot be considerd as allowance which had been given effect from 01/09/2008. The said order has also cited the Resolution dated 30/08/2008 of the Government which was referred in the notification issued by the Ministry of Finance wherein MACP has been defined part of ‘Pay structure‘ and not as ‘Allowance‘ and therefore should be given effect from 01/01/2006.
- The order dated 8th Dec 2017 passed by the Apex court has already been implemented by the Ministry of Defence, giving effect to the MACPs w.e.f.01/01/2006 through an OM dated 25/07/2018.
- DoP&T may kindly take note that in para 6.5.2 & 6.5.4 of the report of 6th CPC, the Commission had recommended for implementation of the revised pay structure consisting of Pay Band and Grade Pay w.e.f. 01/01/2006 while the revised allowances were given effect from prospective date i.e. 01/09/2008.
- Ministry of Finance vide Gazette of India, Extraordinary Notification of Resolution No. 1/1/2008-IC dated 29/08/2008 had implemented revised pay structure (Pay Band & Grade Pay) w.e.f. 01/01/2006 whereas the implementation of MACPS was made effective from 0110912008, Accordingly, Ministry of Railways also implemented revised Pay structure w.e.f. 01/01/2006 vide its order dated 04/09/2008 while the rates of Non Practicing Allowance (NPA) were revised w.e.f. 01/01/2006 vide Board’s order dated 22/09/2008. Therefore, the MACPS which is part of Pay structure as decided by Apex Court should be given effect from 01/01/2006 in railways and all other Central Government departments.
- Another important fact which cannot be ignored is, that the Apex Court had held that the benefit of ACP granted to an employee is part of the Pay structure which not only affects the pay but also pension of the employee, therefore, decided that the ACP is not allowance but a part of pay. At the same time, the Hon’ble Supreme Court further held that there can be no dispute that grant of ACP is part of pay structure and that the resolution dated 30/08/2008 relating to implementation of 6th CPC recommendations on pay structure, pay bands, grade pay etc have been given effect from 0110112006 and also added that this is the decision of the Cabinet which could not have been modified by issuing executive instructions.