There is often confusion about the annual increment received by central employees every year, especially when the salary of an employee has been brought to the same level as his junior (Pay Stepping-Up). In such a situation, will the next increment be received in 6 months or after 12 months? On this important question, the government has now clarified the situation in the Lok Sabha.
What was asked in the Lok Sabha?
MP Anand Bhadoria asked the government in the Lok Sabha: In cases where the salary of a senior employee has been made equal to that of his junior (under Rule 7(10) of CCS (RP) Rules, 2016), is 6 months of service sufficient to get the next annual increment or will one year of service from the date of the previous increment be required?
In response, Minister of State for Finance Pankaj Chaudhary clarified: “The date of next increment in 7th Central Pay Commission pay structure is governed under Rule 10 of Central Civil Services (Revised Pay) Rules, 2016…”
What does Rule 10 say?
Rule 10, as given in Annexure-I, states: Central employees will get increment only once a year — either on January 1 or July 1, depending on the date of their appointment, promotion or financial upgradation (such as MACP).
If an employee is promoted between January 2 and July 1, he will get the next increment on January 1. And if the promotion is between July 2 and January 1, the next increment will be on July 1.
“Where two grades are merged and the junior is paid more than the senior, the pay of the senior will be made equal to that of the junior and the next increment will be given in accordance with this rule.”
This means that even if the senior’s salary is made equal to that of the junior, the next increment will not be given until a full year is completed – six months of service will not be considered sufficient.
Why is this clarification necessary?
In recent years, many employee organizations and individual employees had raised the issue of when the next increment should be given after stepping-up. Due to no clarity on this, there was confusion in many departments. With this answer, the situation has now become clear.
Know how is the increase in Dearness Allowance (DA) decided
DA is calculated on the basis of 12-month AICPI index (All India Consumer Price Index for Industrial Workers).
Its formula is: DA (%) = {(AICPI average – 261.42)/261.42} x 100
At present, the DA stands at 55% after the 2% hike for the January-June 2025 cycle. The AICPI figures for June 2025 are out and now the average of 12-month AICPI Index indicates that a 3% increase in DA is possible for the July-December 2025 cycle.
Summing up…
With this clarification of the government, it has become clear that even after stepping-up, a full year of service is necessary for the next increment – even if the salary of the senior is made equal to that of the junior.
Therefore, if you are a central government employee, it is not only important to understand your salary structure but it is equally important to have the correct information about the rules related to DA, MACP and increment.