7th Pay Commission MACP Changes in benchmark and withholding of increment

MACP in promotional hierarchy

7th Pay Commission MACP changes – Benchmark for allowing MACP increased from ‘Good’ to ‘Very Good’. Annual Increments to be withheld in the first 20 years if not eligible for MACP

Govt accepts 7th Pay Commission’s proposal for increasing the benchmark for allowing MACP from “Good” to “Very Good”.

The other proposal of 7th Pay Commission that annual increment will be withheld in the first 20 years of service if an employee fails to attain the benchmark for MACP or promotion, has also been accepted by Govt.

These are two significant changes in the service conditions of Central Government Employees as their pay will be related to their performance to some extent after implementation of 7th Pay Commission.

Here is the text of acceptance by Govt with respect to changes made in MACP

Recommendation of the seventh central Pay Commission
Decision of the Government
MACP will continue to be administered at 10, 20 and 30 years as before. In the new Pay Matrix, the employee will move to immediate next Level in hierarchy. Fixation of pay will follow the same principle as that for a regular promotion in the Pay Matrix. MACPS will continue to be applicable to all employees up to Higher Administrative Grade (HAG) level except members of Organised Group ‘A’ Services. (Para 5.1.44 of the Report)
Benchmark for performance appraisal for promotion and financial ungrdation under MACPS to be enhanced from “Good” to “Very Good”. (Para 5.1.45 of the Report)
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. (Para 5.1.46 of the Report)

Download Gazette Notification on the decision made by Govt in respect of 7th pay Commission report