Fixation of Pay on Promotion or Upgradation as per Revised Pay Rules, 2008

Every Government employee has to submit an option when he gets promotion or upgradation. The option is under rule FR22(I)(a)(1) and the option have to submit within one month from the date of promotion or upgradation. When an employee accepts the promotion he will be asked to opt whether his pay will be fixed on the date of promotion or the date of next increment. His pay will be fixed as per the option has been exercised by him under rule FR22(I)(a)(1).
The Rule No.13 of CCS (Revised Pay-2008) says, “On promotion an employee will get one increment equal to three per cent of his basic pay (Pay in the pay band + Grade pay).
For illustration… If an employee opts to get his pay fixed in the higher post from the date of his promotion(1.12.2010), his pay will be fixed as follows…

His Basic pay on the date of promotion (as on 1.12.2010) :	11,500 + 2,800 = 14,300
Adding of 3% of Basic pay as Promotional increment (rounded off to the next multiple of ten) :	430 + 11,500 + 2,800 = 14,730
Promoted to in which Grade pay :	4200
Pay will be fixed on the date of promotion (as on 1.12.2010) :	11,930 + 4200 = 16,130
Date of next increment	on July 2011
On the date of next increment his pay will be i.e. 1st July 2011 : Adding of 3% of Basic pay as Annual increment (rounded off to the next multiple of ten) :	490 + 11,930 + 4,200 = 16,620

For example, the same employee, if he gets his promotion on 1.2.2011, his basic pay will be calculated as follows…
He should be given his option to fix his pay under rule FR22(I)(a)(1) on the date of next increment.

His Basic pay on the date of promotion (as on 1.02.2011) :	11,500 + 2,800 = 14,300
Adding only the next higher Grade pay in the promotional hierarchy : The pay continues upto the date of next increment i.e., July, 2011	11,500 + 4,200 = 15,700
On the day of next increment the pay will be refixed (as on 1.07.2011) : Adding of 3% of Basic pay as Promotional increment (rounded off to the next multiple of ten) :	11,500 + 2,800 + 430 = 14,730
On the day of next increment the pay will be refixed (as on 1.07.2011) : Adding of 3% of Basic pay as Annual increment (rounded off to the next multiple of ten) :	11,930 + 2,800 + 450 = 15,180
His pay will be on 1.07.2011 :td>	12,380 + 4,200 = 16,580

When calculate the annual or promotional increment to an employee, there should be a rule should follow as per the office memorandum (F.No.1/1/2008-IC
/ http://finmin.nic.in/6cpc/fno1108dt290109.pdf) published by Finmin dated on 29.01.2009 . The rule says, “

if the amount of increment comes to Rs.1900.70 paise, then the amount will be rounded off to Rs.1900; if the amount of increment works out to be
Rs.1901, then it will be rounded off to Rs.1910″.
Normally, the fraction of 50 paise and above to be rounded to one rupee and fraction of less than 50 paise to be ignored. But whereas here, the
fraction of 90 paise will be ignored and one rupee and above will be rounded off to ten rupees.
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Source : www.centralgovernmentemployeesnews.in
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