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31 Dec, 2024 09:11 PM

Employees cannot claim benefits of both MACPS and regular promotion

Employees cannot claim benefits of both MACPS and regular promotion

The Supreme Court has clarified that central government employees cannot simultaneously benefit from both the time-bound promotion scheme and financial upgradation under the Modified Assured Career Progression Scheme (MACPS). The Court emphasized that promotions and financial upgradations must be duly accounted for and considered within the framework of the MACPS.

The bench, comprising Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar, delivered the judgment while addressing civil appeals related to the implementation of the MACPS, 2008. This scheme ensures financial upgradation for government employees after 10, 20, and 30 years of regular service, as per the Central Civil Services (Revised Pay) Rules, 2008 (CCS RP Rules).

Key Highlights of the Judgment

  1. Reconciliation of Benefits: The Court held that financial upgradations under the CCS RP Rules must be counted when determining eligibility for MACPS benefits. This ensures employees do not receive duplicate advantages.

  2. Non-Recovery from Retirees: The Court directed that no recovery of arrears be made from retired employees or those set to retire within one year of this judgment.

  3. Proportionate Recovery for Others: For other employees, the Court allowed recoveries only after issuing a notice and mandated that such recoveries be proportionate, spread over a period not exceeding two years, without any interest on the recovered amount.

  4. Prospective Application: The judgment stipulated that revised pension and pay scales would be implemented prospectively from January 1, 2025.

Background of the Dispute

The issue arose when employees argued that the MACPS should apply retroactively from January 1, 2006, coinciding with the enforcement of the CCS RP Rules. Some respondents had received revised or higher pay scales after 2–4 years of service, which led to confusion regarding overlapping benefits between the MACPS and the earlier Assured Career Progression Scheme (ACPS), operational from August 9, 1999, to August 31, 2008.

The Court referenced its 2020 decision in Union of India and Others v. M.V. Mohanan Nair, which compared the two schemes. While the ACPS provided two financial upgradations after 12 and 24 years of service, the MACPS introduced three upgrades after 10, 20, and 30 years, irrespective of promotions.

Implications of the Ruling

This decision brings clarity to the financial entitlements of central government employees and addresses the issue of overlapping benefits under different schemes. By balancing the need for accountability with leniency for retirees, the Court has sought to uphold both administrative efficiency and fairness.




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