Friday, 5 July 2019

MACP – All about Modified Assured Career Progression Scheme applicable to Central Government Employees after implementation of 7th Pay Commission

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Modified Assured Career Progression Scheme (aka MACP), is the modified version of Assured Career Progression Scheme which was recommended by 5th Pay Commission and existed till 2009.
The very idea of Career Progression granted Central Government Employees is to provide additional pay benefits in the form of Financial upgradation when regular promotion is getting delayed due to stagnation.

1. An Overview on Assured Career progression Scheme:

When ACP (Assured Career Progression Scheme) was implemented vide Office Memorandum NO. 35034/1/97-Estt(D) dated 09.08.1999, it was not made applicable to Central Government Employees in Group “A” Services.
In respect of Central Government Employees in Group B, Group C and Group D Cadres, two financial upgradation were allowed. First and Second ACP were granted on completion of 12 years and 24 years of service respectively.
In ACP Scheme, Basic Pay of Central Government Employees was upgraded as though the employee concerned was promoted to next higher post. In other words, one increment applicable to existing post was given and then the basic pay was fixed at nearest higher pay in next higher post.
Checkout following Office Memorandum issued by Govt for implementing ACP

2. Modified Assured Career Progression (MACP) Scheme introduced by 6th Pay Commission

6th Pay Commission recommended a modifed version of ACP for its operation in Running Pay Band and Grade Pay Concepts introduced by it.
Changes in Career Progression Scheme on introduction of MACP:
1. Unlike ACP, MACP is applicable for Central Government Employees in Group A Services also.
2. Career Progession in 12 years as per ACP was modified as reduced to 10 years in MACP.
3. MACP provides for three financial upgradation in the place of two provided by ACP.
4. MACP envisages pay fixation to next Grade Pay in the Grade Pay hierarchy along with 3% increment in pay in pay band and grade pay received prior to upgradation.
5. Even if next grade pay in grade pay hierarchy is same as Grade Pay received prior to upgradation or the same is less than the Grade Pay applicable to next post in the promotion hierarchy, Central Government Employees will have to settle with upgradation to next Grade Pay only.

3. MACP after implementation of 7th Pay Commission recommendations:

Most of the features of MACP Scheme applicable in the previous pay commisssion period were retained in MACP Scheme came in to effect after 7th CPC implementation also.
Instead of financial upgradation in next grade pay hierarchy, MACPS would now provide financical upgradation to next level in the Pay Matrix after granting one increment (by traversing to the pay mentioned in the vertically next index) in the pay level applicable prior to grant of MACP.
Following is the major change made in MACP Scheme from 25th July 2016
Benchmark for financial upgradation under MACPS has been revised to “very good” in APAR (Annual Performancce Appraisal Report) gradings from “good” which was applicable in the earlier version of MACP Scheme.

4. Pay fixation on MACP

Though Pay fixation method on grant of MACP will be same in all cases, application of the same would slightly differ depending upon the Date of MACP. This is mainly because decision of Govt on 7th Pay Commission implementation envisages two dates for annual increment viz., on 1st January and 1st July based on the date of entry in to service, date of promotion or MACP.
Checkout following article for reading in details about Two Dates of Annual Increment after 7th Pay Commission implementation.

5. MACP between 2nd July and 1st January:

If an Employee is granted MACP between 2nd July and 1st January, he / she would automatically entitled to one annual increment on 1st July which falls prior to her / his MACP.
On grant of MACP the employee concerned will be entitled to financical upgradation to next level in the Pay Matrix after getting one increment (by moving to pay mentioned in the vertically next index) in the pay level applicable prior to grant of MACP.
Then the next annual increment will be granted in the immediate next 1st day of July.

6. MACP between 2nd January and 1st July:

If an employee is entitled to MACP between 2nd January and 1st July and if he / she is getting annual increment on 1st January prior to MACP, he / she would automatically entitled to one annual increment on 1st January, which falls prior to her / his MACP.
On grant of MACP the employee concerned will be entitled to financical upgradation to next level in the Pay Matrix after getting one increment (by moving to pay mentioned in the vertically next index) in the pay level applicable prior to grant of MACP.
Then the next annual increment will be granted in the immediate next 1st day of January.

7. Pay Fixation MACP – When Employee opts for Pay Fixation on the date of next increment under FR 22 (I) (a) (1).

As we all know, Prior to implementation of 7th CPC recommendations, Single Date of Annual Increment, viz., 1st July of Every Year, was in existence. Hence, except Employees who enter in to Government Service after 1st January 2016, Date of annual increment of existing employees prior to 1st January 2016 was 1st July.
In the case of employees joined in Govt Service on or before 1st January 2016, getting annual increment in 1st July, and granted MACP between 2nd January and 1st July, if the MACP Pay fixation is effective from actual date of MACP, then the employee concerned may not be entitled to next annual increment in the immediate next 1st day of July.
In those cases, it would be financially beneficial for the employee if he / she opts for Pay fixation on the date of next increment under FR 22 (I) (a) (1) to be eligible for next annual increment in the immediate next 1st day of July. Consequently, annual increment in the case of the employee concerned would continue to be received on 1st July, irrespective of the fact that he / was granted MACP between 2nd January and 1st July.

8. How to Fix pay of Central Government Employees on grant of MACP ?


Illustration 1 : MACP on 1st August 2016:(Applicable to employees granted MACP between 2nd July and 1st January )
  1. 7th Pay commission Pay of an employee is fixed as Rs. 34900 in Level 5 (as against grade pay of Rs. 2800 in 6th CPC Pay) as on 1st January 2016.
  2. As on 1st July 2016, he will be entitled to annual increment. Therefore, his pay will be fixed as Rs. 35,900/- at Level 5 Index 8.
  3. He is entitled to MACP as on 1st August 2016.
  4. In this case, financial upgradation under MACP is granted as follows.
Step 1: Existing Pay of Employee which is in Index 8 of Level 5 will be provided with MACP Increment and therefore his pay will be placed in Level 5 – Index 9, viz., in 37,000/-
Step 2. Since there is no pay in the next level (level 6) which is equal to Rs. 37,000/-, the next higher basic pay in Level 6 is Rs. 37,600/- which is at Index 3 of Level 6.
The relevant portion of Pay Matrix is given below.
Grade Pay240028004200
Entry Pay (EP)99101136013500
Level456
Index2.572.572.62
1255002920035400
2263003010036500
3271003100037600
4279003190038700
5287003290039900
6296003390041100
7305003490042300
8314003590043600
9323003700044900
10333003810046200

As per Rule 9 of 7th Pay commission Pay Rules 2016 the next date of annual increment in respect of this employee will be on 1st July 2017.
Illustration 2 : MACP on 1st March 2016:(Applicable to employees granted MACP between 2nd January and 1st July )
1. 7th Pay commission Pay of an employee is fixed as Rs. 55,200/- in Index 6 Level 8 (as against grade pay of Rs. 4800 in 6th CPC Pay) as on 1st January 2016.
2. He is entitled to MACP as on 1st March 2016.
3. As per O.M. No.F.No.35034/3/2015-Estt.(D), dated 28.09.2016, recommendations of 7th Pay Commission on MACP takes effect from 25th July 2016.  However, Rule 13 of Central Civil Services (Revised) Pay Rules 2016 which envisages the method for fixation of pay on promotion and MACP is effective from 1st January 2016.  It implies that Employees who are entitled to MACP on or after 1st January 2016 would be covered by MACP based on 7th Pay Commission revised Pay.
4. As per Rule 9 of 7th Pay Commission Revised Pay Rules 2016,  An employee who is granted MACPS during the period between 2nd day of January and 1st day of July and who did not draw any increment on 1st day of July, the next increment shall accrue on 1st January of next Year.
5. As MACP between 2nd January to 1st July in a year, occurs prior to grant of annual increment in the month of July, an employee entitled to MACP during this period has the option of fixing revised pay fixation on MACP either on the date of MACP or on the date of next increment under FR 22 (I) (a) (1).
6. If the employee concerned chooses to have his / her MACP pay fixation on the date of MACP, then as per Rule 9 of CCS Revised Pay Rules 2016, (as detailed in Point 4 above), he/she will not be entitled to next annual increment in the 1st July that succeeds the date of MACP and the same would be granted 1st January of next year.
7. However, if the employee has opted to fix his / her MACP Fixation on the date of his / her next annual increment which would fall on 1st July of each year as per FR 22 (I) (a) (1), he / she would be entitled to annual increment on 1st July and MACP fixation would be granted on the incremented pay.
Note: As per FR 22 (I) (a) (1), central government employees have the option, to have their pay fixed from the date of promotion / MACP or from the date of next increment.
5. In this case, the most beneficial financial upgradation under MACP will be option chosen as detailed in point 7 above and the method of pay fixation in this case is as follows.
Step 1: Grant of Annual increment of employee from 1st July 2016 will precede MACP fixation. Therefore, after annual increment pay will be fixed at Rs. 56,900/- in the Index 7 Level 8.
Step 2: Then the employee will be provided with MACP Increment and therefore pay will be placed at Rs. 58,600/ in Index 8 Level 8.
Step 3. Since there is no pay in the next level (level 9) which is equal to Rs. 58,600/-, the next higher basic pay in Index 5 Level 9 is Rs. 59,700/-. So, on MACP fixation the pay of employee will be fixed at Rs. 59,700/-.
The relevant portion of Pay Matrix is given below.
Grade Pay460048005400
Entry Pay (EP)171401815020280
Level789
Index2.622.622.62
1449004760053100
2462004900054700
3476005050056300
4490005200058000
5505005360059700
6520005520061500
7536005690063300
8552005860065200
9569006040067200
10586006220069200

As per Rule 9 of 7th Pay commission Pay Rules 2016 The next date of annual increment in respect of this employee will be on 1st July 2017.
Checkout following MACP Calculator incorporating the method of pay fixation discussed above
Also check these important orders and clarifications on MACP Scheme

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