DEFINITION OF PAY

PAY MEANS THE AMOUNT DRAWN BY A GOVERNMENT

SERVANT AS:-

(A) THE PAY OTHER THAN THE SPECIAL PAY OR PAY

GRANTED IN VIEEW OF HIS PERSONAL QUALIFICATION
WHICH HAS BEEN SANCTIONED FOR A POST HELD BY
HIM SUBSTANTIVELY OR IN AN OFFICIATING CAPACITY
OR TO WHICH HE IS ENTITLED BY REASON OF HIS
POSITION IN CADRE: AND

(B) OVERSEAS PAY,SPECIAL PAY AND PERSONAL PAY

(C) ANY OTHER EMOLUMENTS WHICH MAY BE

SPECIFICALLY CLASSIFIED AS PAY BY THE PRESIDENT
(RULE 1303/FR9/2/R-II)
Provisions of the newly substituted FR 22 which
govern the fixation of pay of Government
servants in general apply mutatis mutandis to
Railway employees. These are indicated below
– 1. FR 22 (I)
– 1.1 Clause (a) (I) deals with fixation of pay of a Government
servant holding a Post other than a tenure post, in a
substantive, temporary or officiating capacity on promotion/
appointment in a substantive, temporary or officiating
capacity to a higher post.

– 1.2 Clause (a) (2) deals with fixation of pay of Govt. servant
on appointments to the new post which does not involve
assumption of duties and responsibilities of greater
Importance.
• 1.3 Clause (a) (3) deals with fixation of pay of a Govt. servant holding a
post in a substantive, temporary or officiating capacity on transfer on
his own request to a post with the maximum of the time scale of that
post being lower than his pay in the post held by him on regular basis.
• 1.4    Clause (b) deals with fixation of pay of a Govt. servant when the
conditions stipulated in Clause (a) above are not fulfilled, such as on
first appointment in Government service etc.
• 2. FR 22 (II)
• FR 22 (II) deals with grant of Proforma officiating promotion under
'Next below Rule' to a Government servant working on deputation
under the Government outside his regular line of service or on foreign
service.
• 3. FR 22 (III)
• FR 22 (III) stipulates that appointment or promotion of a Government
servant to a post in the same or identical time scale of pay (with
reference to the scale of pay of the post held by him at the time of
appointment or promotion) should not be deemed to involve the
assumption of duties and responsibilities of greater importance for the
purpose of initial fixation of pay.
• 4. FR 22 (IV)
• FR 22 (IV) stipulates that when a Government servant while
holding an ex-cadre post is promoted or appointed regularly to
a post in his cadre, his pay in the new cadre post should be fixed
with reference to his presumptive pay in the old cadre post
which he would have held but for his holding the ex-cadre post.
• 5. There is a proviso to clause (b) of FR 22(I). It enables
counting previous service in the same or identical time scale.

OTHER FRs RELEVANT TO FIXATION OF PAY

• FR 27 vests powers with the competent authority to fix the pay

of a Government servant at a stage higher than admissible
under the provision of FR 22 by granting premature
increments.
• FR 35 vests powers with the Govt. to fix the pay of an officiating
Govt. servant at an amount less than that admissible under FR
22.
 SITUATIONS THE FIXATION OF PAY IS DONE

• (A) At the time of first appointment:

• The pay of person at the time of initial appointment will

be fixed at the minimum of the time scale of post to which he
is appointed. In special cases, pay may be fixed at a higher
stage , even at the maximum of the scale by giving advance
increments. [Premature increment to a railway servant on a
time scale of pay may be granted by an authority if it has
power to create a (permanent) post in the same scale of pay .
(Ref. President’s decision under FR.27). The Accounts will
be consulted for such premature increment unless there is a
standing order about same.
• (A) Fixation of pay of a Govt. servant on promotion/
appointment from one post to a higher post.

• (1) ‘1313.(F.R.22)(l) The initial Pay of a railway servant who is

appointed to a post on a time scale of pay is regulated as follows:-
•  
• (a) (l) where a Railway servant holding a post, other than a tenure
post, in a substantive or temporary or officiating capacity is promoted
or appointed in a substantive, temporary or officiating capacity, as the
case may be subject to the fulfillment of the eligibility conditions as
prescribed in the relevant Recruitment Rules, to another post carrying
duties and responsibilities of greater importance than those attaching
to the post held by him, his initial pay in the time-scale shall be fixed
by giving one increment in the level from which the
Railway servant is promoted and he or she shall be placed at a
cell equal to the figure so arrived at in the level of the post to
which promoted or appointed and if no such cell is available in
the level to which promoted or appointed, he shall be placed in
the next higher cell in that level.
• Option date for fixation of pay on promotion to a higher post.

• The Govt. servant promoted to a higher post, on regular basis,

gets an option to be exercised for fixation of pay in the higher
post as under:-

• (i) Either his initial pay may be fixed In the higher post on the
basis of clause (a) (I) of FR 22 (I) straightaway from the date of
promotion without any further review on accrual of increment
in the pay scale of the lower post ; or

• (ii) his pay on promotion may be fixed at the stage of time scale
of the new post above the pay in the lower post from which he is
promoted, which may be fixed in accordance with clause (a) (I)
of FR 22 (I) on the date of accrual of next increment in the time
scale of the pay of the lower post.
or
• Note: The option should be exercised by the Govt. Servant
within one month from the date of
• promotion. This option is not available in the case of appointment
on deputation to an ex-cadre post or to a post held on ad-hoc
basis, However, In cases where an ad-hoc promotion is followed
by regular appointment without break, the option is admissible as
from the date of initial promotion, which should be exercised
within one month from the date of such
• (B) Fixation of pay on appointment/ promotion from one ex-cadre
post to another ex-cadre post
• In cases of appointment/ promotion from one ex-cadre post to
another ex-cadre post, where the Government servant opts to
draw pay in the scale of the ex-cadre post, the pay in the second or
subsequent ex-cadre posts should be fixed under the normal rules
(i.e. FR 22(I) (a) (I) or (a) (2) with reference to the pay in the
cadre post only. If on appointment to second or subsequent ex-
cadre posts in a higher pay scale than that of the previous ex-
cadre post the pay fixed under normal rules with reference to the
pay in the cadre post happens to be less than that drawn in the
previous ex-cadre post the difference may he allowed as 'Personal
Pay' to be absorbed in future increases in pay.
• Non-applicability of FR 22(I)(a)(I) where UPSC makes  a specific
recommendation reg. pay to be given

• FR 22(1) (a) (I) will not apply to cases of Govt. servants

appointed to higher posts through the UPSC and in whose case
the Commission have made a specific recommendation regarding
the rate of pay to be given and the person concerned should get
that rate of pay. If on the contrary the Commission recommends
that the pay should be fixed under the normal rules, then the pay
may be fixed under FR 22(I)(a)(I) subject to fulfillment of all the
conditions regarding assumption of higher duties prescribed in
this rule.

• (C) Fixation of pay of State Govt. servant appointed to a post

under the Central Govt., carrying duties and responsibilities of
greater importance.

In such cases, the initial pay may be fixed under FR 22(I)(a)(1)

FR22(I) (a) (2)
• (D) Fixation of pay-on transfer from one post to another
when the appointment does not involve assumption
of higher responsibilities.

• (i) As per clause (a) (2) of FR 22(1), his initial pay in the new post
should be fixed at the stage which is equal to his pay in respect of
the old post held by him on regular basis and he will draw his next
increment in the new post on the date on which he would have
received an increment in the time scale of the old post. If there is
no such equal stage in the time scale of the new post, his initial
pay in the new post will be fixed at the stage next above his pay in
respect of the old post and he will draw his next increment in the
new post on completion of the period when an increment is earned
in the time scale of the new post.

• (ii)    The above proviso is also applicable in the case of

appointments to non-functional selection grade posts.
• (iii)    As per the first provision to cl. (a)(2) of FR 22(I), if the
minimum pay of the time scale of the new post is higher than his
pay in respect of the post held by him regularly, his initial pay
should be fixed at the minimum the new post.

• (E) FR 22(1)(a)(3 Fixation of pay on transfer to a lower scale at

own request
• 8.1    As per clause (a)(3) of FR 22(I). when a Government servant
is appointed to a new post at his own request under FR 15(a), the
pay of the Govt. Servant holding a post on regular basis will be
fixed at a stage equal to the pay drawn by him in the higher grade
and if no such stage is available, the pay will be fixed at the stage
next below the pay drawn by him in the higher post and the
difference may be granted as personal pay to absorbed in future
increments. If the maximum pay in the time scale of the new post
is lower than the pay drawn by the Government servant in the old
post held by him on regular basis, his initial pay in the new post
will be fixed at the maximum of the scale of pay of that post.
• (H) Next Below Rule
• The intention of this rule is to protect the interest of a Govt.
servant who is working on deputation under the Govt. outside
his regular line of service and on Foreign Service. Simply
because he had gone out of his regular line, he should not lose
any offg. promotion which he would have otherwise received had
he been in regular line. Under this principle, an officer outside
his regular line and who is fit for promotion in his regular line
can be given Proforma offg. promotion to a higher grade
without any change in the duties but subject to the following
conditions.
– (I) All the officers senior to him should have been promoted
and be drawing pay in the higher grade or still higher grades
in which the promotion (proforma) is sought to be given to
the officer out-side the regular line. If any senior has not
been given such promotion, it should be due to inefficiency,
unsuitability or leave.

– (II) The officer immediately junior to him should have been

given officiating promotion and be drawing pay in the
higher grade. If the Immediate junior has been overlooked,
for reasons of unsuitability etc. the one still junior should
have been promoted to the higher grade.
– (III) If no officer junior to him eligible for promotion within
the cadre is available, profroma promotion may be given to
the officer subject to the following conditions

• That a post within the cadre remains unfilled for want of

an approved person junior to the officer and
• The vacancy caused in the cadre is not filled up by
making promotion on ad hoc basis till the release of the
next panel when some juniors become eligible for
promotion.

– (IV) The benefit should be given to only one officer against

one vacancy. For example, if series of officers are outside the
ordinary line then the promotion of a junior to them in the
regular line will entitle only the senior most of the series of
officers to the benefit under the Next Below Rule subject to
fulfillment of the other conditions mentioned above.
 – (V) The benefit of officiating promotion under the rule
should be allowed only against promotions in a cadre in
vacancies of more than 90 days duration. In other words, the
initial vacancy as well as subsequent vacancies on the basis
of which the benefit is to be continued should each be of
more than 90 days duration.
• The grant of benefit under NBR to an officer outside the
regular line either on deputation under the Govt. or on Foreign
Service will entitle him to the following:
– To draw the higher rate of pay to which he may be
entitled in the regular line, while holding the post
outside his regular line.
– To count the period of his service from the date of
proforma promotion for increment in the post in which
he would have officiated had he been in the regular
line.
– For giving The benefit, a declaration under FR 22(II) to the
effect that the post held by the Government servant is
outside the ordinary line will be necessary.

– A Govt. Servant who does not require the benefit of NBR for
the reason that the post held by him is on a scale identical
with the scale of pay of the post in the regular line to which
he is given proforma promotion can pass down the benefit to
the next senior-most officer outside the regular line,
provided that officer is senior to the junior promoted in the
regular line.
• The benefit under NBR should not be given to persons deputed to
regularly constituted ex-cadre posts abroad in which their pay is
regulated by the orders of the Central Govt. under FR 51-A. In
such cases, when the officers revert to their parent cadre, in or out
of India and are appointed to the posts which they would have
held but for deputation abroad that portion of the period during
which the conditions of NBR are fulfilled will be allowed to count
for fixation of pay. The pay fixation will be done under FR 27.
• Illustration :
• Fixation of initial pay in the
revised pay-structure in 6 th

CPC
1 Existing Scale of Pay Rs 4000-100-6000

2 Pay Band applicable PB-1 Rs.5200-20200

3 Existing basic pay as on 1.1.2006 Rs 4800

Pay after multiplication by a Rs. 8928 (Rounded off to
4
factor of 1.86 Rs.8930)
5 Pay in the Pay Band Rs.8930

Pay in the Pay Band after

6 including benefit Rs.8930
of bunching, if admissible

7 Grade Pay attached to the scale Rs.2400

Revised basic pay - total of pay in

8
the pay Rs.11330
band and grade pay
(ii) Fixation of pay in the case of Bunching of Pay:

* Where, in the fixation of pay, the pay of Railway servants drawing

pay at two or more consecutive stages in an existing scale gets
bunched, that is to say, gets fixed in the revised pay structure at the
same stage in the pay band, then, for every two stages so bunched,
benefit of one increment shall be given so as to avoid bunching of
more than two stages in the revised running pay bands. For this
purpose, the increment will be calculated on the pay in the pay band.
Grade pay would not be taken into account for the purpose of
granting increments.

* The pay in the pay band will be determined in the above manner
that in addition to the pay in the pay band, grade pay corresponding
to the existing scale will be payable.
Stepping of pay in pay fixation

(a) Where in the fixation of pay under sub-rule (I), the pay of a
Railway servant, who, in the existing scale was drawing immediately
before the 1st day of January, 2006 more pay than another Railway
servant junior to him in the same cadre, gets fixed in the revised pay
band at a stage lower than that of such junior, his pay shall be
stepped upto the same stage in the revised pay band as that of the
junior.
(b) In cases where a senior Railway servant promoted to a higher
post before the 1st day of January, 2006 draws less pay in the
revised pay structure than his junior who is promoted to the
higher post on or after the 1st day of January, 2006, the pay in the
pay band of the senior Railway servant should be stepped up to an
amount equal to the pay in the pay band as fixed for his junior in
that higher post. The stepping up should be done with effect from
the date of promotion of the junior Railway servant subject to the
fulfillment of the following conditions, namely: -
* both the junior and the senior Railway servants should belong to
the same cadre and the posts in which they have been promoted
should be identical in the same cadre.
* the pre-revised scale of pay and the revised grade pay of the lower
and higher posts in which they are entitled to draw pay should be
identical.
* the senior Railway servants at the time of promotion should have
been drawing equal or more pay than the junior.

* the anomaly should be directly as a result of the application of the

provisions of Rule 1313(FR 22) of Indian Railway Establishment
Code, Volume II or any other rule or order regulating pay fixation
on such promotion in the revised pay structure. If even in the lower
post, the junior officer was drawing more pay in the pre-revised
scale than the senior by virtue of any advance increments granted to
him, provision of this Note need not be invoked to step up the pay of
the senior officer.
Rule-8. Fixation of pay in the revised pay structure of employees
appointed as fresh recruits on or after 1.1.2006 - Section II of Part A
of the First Schedule of these Rules indicates the entry level pay in
the pay band at which the pay of direct recruits to a particular post
carrying a specific grade pay will be fixed on or after 1.1.2006.

Entry pay in the revised pay structure for direct recruits appointed
on or after 01.01.2006

Grade
Srl Pay Band (Rs) Pay Pay in PB Total
1 PB-1 5200-20200 1800 5200 7000
2 PB-1 5200-20200 1900 5830 7730
3 PB-1 5200-20200 2000 6460 8460
4 PB-1 5200-20200 2400 7510 9910
5 PB-1 5200-20200 2800 8560 11360

6 PB-2 9300-34800 4200 9300 13500

7 PB-2 9300-34800 4600 12450 17050

8 PB-2 9300-34800 4800 13350 18150

9 PB-3 15600-39100 5400 15600 21000

10 PB-3 15600-39100 6600 18750 25350

11 PB-3 15600-39100 7600 21900 29500

12 PB-4 37400-67000 8700 37400 46100

13 PB-4 37400-67000 8900 40200 49100

14 PB-4 37400-67000 10000 43000 53000

15 PB-4 37400-67000 12000 47100 59100

Illustration: Pay fixation on grant of increment in the revised pay
structure

1. Pay in the PB-2 Rs.9300

2. Grade Pay Rs.4200
3. Total of pay + grade pay Rs.l3500
4. Rate of increment 3% of 3 above
5. Amount of increment Rs.405 rounded off to Rs.410
Pay in the pay band after
6. Rs.9300 + 410
increment
7. Pay after increment Rs.9710
8. Grade pay applicable Rs.4200
Illustration :

Illustration : An Employee O.S.-II promoted as O.S.-I

Existing Scale - Rs. 5500-9000/-, D/increment - 01st Dec,
D/Promotion - 10.04.06, Pre-revised Scale in which promoted - 6500-
10500/-, Opted for fixation in pre-revised Scale.
Corresp
Post/ Pay
Existing Scale Pay Band/ Scale onding
Grade Band
GP
S-9 5000-150-8000 PB-2 9300-34800 4200
S-10 5500-175-9000 PB-2 9300-34800 4200
S-10 A 6000-190-9800 PB-2 9300-34800 4200
S-12 6500-200-10500 PB-2 9300-34800 4600
S-13 7450-225-11500 PB-2 9300-34800 4600
S-14 7500-250-12000 PB-2 9300-34800 4800
 Initial Pay fixation

Existing Scale of Pay 5500-175-9000

Pay Band Applicable 9300-34800

Basic Pay as on 01.01.2006 5850

Pay after multiplication by a factor of 1.86 10881

Rounded off to Rs. 10890

Pay in Pay Band PB 10890
Pay in the Pay Band after including
10890
benefit of bunching, if admissible.
Grade Pay attached to the Scale 4200
15090
Revised Basic Pay - Total of Pay in the
As on 01.01.06
Pay Band & Grade Pay
ΠPay on promotion on 10.04.2006.
1 Date of promotion 10.04.06
2 One Increment to be added =  
  (a) Pay in PB (as worked out above) 10890
  (b) Grade Pay 4200
3 Total of Pay + Grade Pay 15090
4 Rate of increment 3% of above 452.7
Hence, amount of increment (Rounded
5 460
off)
11350 (As on
6 Pay on promotion PB-2 (9300-34800)
10.04.06)
7 Grade Pay applicable 4600
 Pay on next increment on 01.07.07
1 Increment =  

2 (a) Pay in PB (as worked out above) 11350

  (b) Grade Pay 4600

3 Total of Pay + Grade Pay 15950

4
Rate of increment 3% of above 478.5

5 Hence, amount of increment (Rounded off) 480

Pay in the Pay Band on promotion after 11830 (As on

6
increment (13500+540) 01.07.07)

7 Grade Pay applicable 4600

 Pay fixation as per option after 01.01.06 (from the date of
promotion)

1 5500-175-9000
Existing Scale of Pay

2 10.04.06
Date of promotion

3 6500-200-10500
Promoted in Pre-revised Scale

4 Pay on 01.01.06 (before promotion) 5850

Pay fixed on promotion on 10.04.06

5 6500
in existing Pay Scl
Fixation shall be done in revised Pay Str as per Rule 11.

7 Basic Pay 6500

8 DP 3250
9 DA (on 7 & 8) @ 24% 2340

12090
10 Pay fixed on promotion in PB-2
12090
11 Rounded off to Rs.(On 10.04.06)
12 Grade Pay 4600

12600
13 Pay after increment on 01.07.07
14 Grade Pay 4600

13120
15 Pay after increment on 01.07.08
16 Grade Pay 4600
Fixation of Pay in 7th CPC

In 7th CPC, the Pay Band & Grade Pay (6th CPC) have
been replaced by Pay Matrix Level corresponding to
different Grade Pay.

In 6th CPC, there were no stages of pay prescribed in

a particular Pay-Band + Grade Pay.

In 7th CPC, stages of pay have been specified in each

Level Pay Matrix.
Fixation as on 01.01.2016 on opting to come under
revised pay structure-

The pay in the applicable Level in the Pay Matrix

shall be the pay obtained by multiplying the existing
basic pay by a factor of 2.57, rounded off to the nearest
rupee and the figure so arrived at will be located in that
Level in the Pay Matrix and if such an identical figure
corresponds to any Cell in the applicable Level of the Pay
Matrix, the same shall be the pay, and if no such Cell is
available in the applicable Level, the pay shall be fixed at
the immediate next higher Cell in that applicable Level of
the Pay Matrix.
• 1. Existing Pay Band : PB-1

• 2. Existing Grade Pay : 2400

• 3. Existing Pay in Pay Band : 10160

• 4. Existing Basic Pay: 12560 (10160+2400)

• 5. Pay after multiplication by a fitment factor of 2.57 :

12560 × 2.57 = 32279.20 (rounded off to 32279)

•  6. Level corresponding to GP 2400 = Level 4

7. Revised Pay in Pay Matrix (either equal to or next

higher to 32279 in Level 4): 32300.
Increments in Pay Matrix: -

The increment shall be as specified in the vertical Cells

of the applicable Level in the Pay Matrix.

For granting increment in the Pay Matrix Level, the

pay will be raised to the next vertical cell (below) in
Pay Matrix.
Fixation of pay on promotion after 01.01.2016-

One increment shall be given in the Level from which the

employee is promoted and he shall be placed at a Cell
equal to the figure so arrived at in the Level of the post to
which promoted and if no such Cell is available in the Level
to which promoted, he shall be placed at the next higher
Cell in that Level.

Earlier, in 5th CPC where stages of pay were existing in time

scale of pay, after giving one promotional increment, the
pay was fixed in next higher stage whether or not the
figure such arrived was available (stage of pay) in the time
scale.

This is the difference.

 Illustration- Fixation of pay on promotion after
01.01.2016-
• 1.Level in the revised pay structure : Level 4

• 2. Basic Pay in the revised pay structure : 28700

• 3. Granted promotion/financial upgradation under MACPS

in
Level 5.

• 4. Pay after giving one increment in Level 4 : 29600

• 5. Pay in the upgraded Level i.e. Level 5 : 30100

(either equal to or next higher to 29600 in Level 5)
 Fixation of pay of employees appointed
by direct recruitment on or after 1st
day of January, 2016: -

• The pay of employees appointed by direct

recruitment on or after 1st day of January, 2016
shall be fixed at the minimum pay or the first Cell in
the Level, applicable to the post to which such
employees are appointed.

• In 6th CPC there was a separate initial pay structure

(Schedule-II) for direct recruitees, whereas in 7th
CPC no such provision exists.