New Delhi, Nov 21: Prime Minister Narendra Modi led government, while issuing notification for implementation of 7th Pay Commission recommendations, also accepted the suggestion that Central government employees should be given annual increments or salary hike only if they meet certain performance criterion. In order to implement the recommendation of the 7th Pay Commission regarding annual increment, the Department of Personnel and Training will soon bring out guidelines which will help in tracking performance of Central government employees. The annual increment of Central government employees will be now based on weekly performance report.
The 7th Pay Commission modified the MACP (Minimum Assured Career Progression) and enhanced the benchmark for performance appraisal for promotion and annual increment to “very good” from “good” level. The 7th Pay Commission also recommended introduction of the Performance Related Pay (PRP) for all categories of central government employees. It simply means, central government employees, who will be rated ‘good’ in performance appraisal won’t get annual increment or promotion.
The Department of Personnel and Training is working on preparing structure to assist the weekly performance report of central government employees, which will further decide whether they are eligible for annual increment. Depending on their weekly work report, annual increment of the Central government employees will be fixed. The decision gives strong signal to non-performing employees that they should change their attitude.
“The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted. This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments. The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service. This will act as a deterrent for complacent and inefficient employees,” said the 7th Pay Commission.
Pay Commission gives its recommendations regarding changes in salary structure of central government employees. As per the notification for the implementation of the 7th Pay Commission, central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. The Cabinet also approved the increase in minimum pay Rs 18,000 from existing Rs 7,000.