Major recommendations in 7th CPC report regarding MACP Scheme

Frequency of Modified Assured Career Progression (MACP)

7th Pay Commission is of the view that there is no justification for increasing the frequency of MACP and it will continue to be administered at 10, 20 and 30 years as before.

In the new Pay matrix, the employees will move to the immediate next level in the hierarchy. Fixation of pay will follow the same principle as that for a regular promotion in the pay matrix.

MACP will continue to be applicable to all employees up to HAG level except members of Organised Group `A’ Services where initial promotions up to NFSG are time bound and hence assured.

With regard to the benchmark for performance appraisal for MACP as well as for regular promotion, 7th Pay Commission has recommended that in the interest of improving performance level, the same has to be enhanced from ‘Good’ to ‘Very Good.’

In addition, introduction of more stringent  criteria such as  clearing of departmental examinations or mandatory training before grant of MACP can also be considered by the government.

Withholding Annual Increments of Non-performers

There is a widespread perception that increments as well as upward movement in the hierarchy happen as a matter of course.

The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted.

7th Pay Commission has proposed that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.

The Commission has proposed for 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.

This will act as a deterrent for complacent and inefficient employees. However, since this is not a penalty, the norms for penal action in disciplinary cases involving withholding increments will not be applicable in such cases. This will be treated as an “efficiency bar”.

Additionally, for such employees 7cpc has also proposed that there could be an option to leave service on similar terms and conditions as prescribed for voluntary retirement.

Promotional hierarchy instead of Grade Pay hierarchy:

MACP Scheme introduced by 6th Pay Commission, provided for career progression in next grade pay hierarchy irrespective of the fact that the next grade pay in hierarchy happens to be the same.  The new pay matrix advocated by 7th Pay Commission may rectify this inconsistency as 7th CPC observers that horizontal traversal in the pay matrix on promotion or MACP  would take care of promotional hierarchy.