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Increment Day for Central Government Employees: 1st January or 1st July of Every Year

Increment Day for Central Government Employees: 1st January or 1st July of Every Year

Increment Day for Central Government Employees: Increment is a significant part of the yearly salary hike provided by the employer to all employees based on their basic pay, salary grade, or post. This incremental raise is typically predetermined by the government as part of the salary structure initially. It can be a set amount or a percentage of their basic salary. There are generally two types of increments: Annual Increment and Promotional Increment. In this section, we will delve into all the intricate details and features surrounding increments.

Increment Day 2024 for CG Employees

TopicIncrement Day
Year2024
ProviderGovernment
BeneficiariesGovernment Employees
Increment Dates1st Januyary & 1st July
FrequencyEvery Year
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7th Pay Commission Increment Day & Date

After the implementation of the 7th pay commission, central government employees have the opportunity for two types of increments. The first type is the annual increment, while the second type is the promotion increment. These increments are provided on specific dates, namely the 1st of July and the 1st of January each year. The annual increment is calculated based on the vertical cells of the relevant Level in the Pay Matrix.

Employees will receive their annual increments on either January 1st or July 1st, depending on the date of their appointment, promotion, or financial upgradation. This marks a change from the previous practice of granting increments only on July 1st. Additionally, under the Modified Assured Career Progression Scheme (MACPS), employees appointed, promoted, or granted financial upgradation between January 2nd and July 1st will receive their increment on January 1st.

Is it compulsory to be present on increment day?

If a Government servant happens to be on leave on the crucial date of 1st July 2024 when the annual increment is due, it does indeed have an impact on the increase in pay. This is due to the fact that an employee on leave is entitled to draw leave salary and not the regular duty pay. Therefore, any increment that accrues while the employee is on leave cannot be availed of during the leave period but only once the individual resumes duty upon return from the leave.

According to the Department of Personnel and Training (DoPT) order issued on 16th February 1989, if a Government employee is on any form of leave on the date of the increment, the enhanced pay will only come into effect from the day the individual reports back to duty. However, this scenario does not alter the employee’s subsequent regular increment date. Furthermore, in the unfortunate event of a Government Servant passing away while on leave for which leave salary is applicable, the benefit of the increment due during the period of leave up to the date of demise is sanctioned from the due date itself without necessitating the individual’s return to duty.

Annual Increment for Central Govt and Railway Employees 2024

With the implementation of the 7th CPC recommendations, questions have emerged regarding the Date of Next Increment (DNI) for employees who were promoted or received financial upgradation, including under MACP, on July 1, 2016. Their pay was fixed on July 1, 2016, in accordance with the pay fixation rules upon promotion.

Issue 1: In cases where an employee is promoted on July 1 and their pay is fixed with two increments, the query arises whether the next increment date should be January 1 or July 1.

Issue 2: The accumulation of the next increment when an employee is regularly promoted or receives financial upgradation on a date other than the annual increment date, and chooses to fix their pay under FR 22(1)(a)(1).

(Kindly note: The Department of Personnel & Training clarified in their OM No. 13/02/2017-Estt. (Pay-1) dated July 27, 2017, regarding the option for pay fixation upon promotion from the Date of Next Increment (DNI) in the lower position and the method of pay fixation from DNI if chosen, as per CCS(RP) Rules, 2016. This clarification was also implemented in Railways through the Board’s Letter No. PC-VII/2016/1/6/2 dated July 31, 2017 (RBE No. 79/2017).

Grant of Annual Increment for Retiring on 30th June

Central Government employees retiring on 30th June and 31st December are eligible for a notional increment. The Department of Personnel and Training has issued an order regarding the granting of annual increments to employees retiring on 30th June. It was clarified that individuals retiring on the last working day are not entitled to the increment due the following day. However, the Supreme Court has ruled in favor of granting one annual increment to retirees on 30th June or 31st December, based on their service period up to the retirement date.