Government raises appraisal benchmark for hikes and promotions to 'very good' from 'good'

The government has prescribed a stiffer benchmark for annual increments for its employee and approved a provision to withhold benefits if performance is not up to mark after first 20 years of service while notifying the Seventh Pay Commission award, which lifts lowest level salary to Rs 18,000 a month from Rs 7,000. 

The benchmark for performance appraisal for promotion and financial upgradation has been raised to 'very good' from 'good' under the Modified Assured Career Progression (MACP) scheme, putting pressure on employees to better their performance. 

This follows as strong recommendation from the Pay Commission that had even suggested more stringent criteria such as clearing of departmental examinations or mandatory training before grant of MACP. "The commission recommends that this benchmark, in the interest of improving performance level, be enhanced from 'good' to 'very good', the commission had said in its report. 

The government has also accepted the Pay Commission's proposal of withholding annual increments in the case of those employees who are not able to meet the benchmark either for the Modified Assured Career Progression (MACP) or a regular promotion within first 20 years of service. 

"There is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course," the commission had said while suggesting this measure as a "deterrent for complacent and inefficient employees". 

"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," it said. 

The MACP scheme will continue to be administered at 10, 20 and 30 years of service as before. 

Under the revised scheme, the highest cabinet secretary-level salary will rise to Rs 2.5 lakh a month from Rs 90,000. In actual terms, the increase is not that steep as it subsumes 125 per cent dearness allowance that was rolled into the salary along with the Pay Commission increase. 

The proposals will benefit over 47 lakh central government employees and 53 lakh pensioners. 

The government has deferred a decision on allowances, giving it some wiggle room in the current financial year. The impact will be less than Rs 1.02 lakh crore because of delay in roll out of allowances. 

"The recommendations on allowances (except dearness allowance) will be referred to a committee comprising finance secretary and secretary (expenditure) as chairman and secretaries of home affairs, defence, health and family welfare, personnel and training, posts and chairman, Railway Board as members," the notification said. The committee will submit its report in four months. 

Source:-The Economic Times