Fixation of pay on promotion (FR 22(I)(a)(1))
On promotion to a higher level, one increment equal to 3% of the existing basic pay is granted and rounded off to the next multiple of ₹100. The resulting amount is located in the promotional level of the pay matrix: if the exact figure exists as a cell, pay is fixed there; if not, pay is fixed at the next higher cell of that level.
Example: basic pay ₹44,900 in Level 7 promoted to Level 8. One increment gives ₹44,900 + ₹1,347 = ₹46,247, rounded to ₹46,300. Level 8 has no ₹46,300 cell, so pay is fixed at the next higher cell of Level 8 — ₹47,600.
MACP pay fixation
Under the Modified Assured Career Progression scheme, an employee who has not been promoted receives financial upgradation to the immediately next level of the pay matrix on completion of 10, 20 and 30 years of continuous regular service. Fixation follows the same increment-plus-placement method used on promotion, and the benefit is limited to three upgradations in the whole career.
Option to fix pay from the date of next increment
An employee promoted between 2 January and 1 July may find it advantageous to defer fixation to the date of next increment. In that case pay continues in the lower level until DNI, the annual increment is drawn in the lower level, and pay is then fixed in the higher level from that date. The written option must be exercised within one month of promotion and is irrevocable.
Pay fixation under the 8th Pay Commission
When the 8th CPC is notified, pay will be fixed by multiplying existing basic pay by the fitment factor and placing the product at the equal or next higher cell of the corresponding level in the new matrix. Dearness Allowance merges into the revised basic pay and restarts at 0%. Employees whose fixation falls between two cells always move up, never down, so the revised pay is at least the multiplied figure.