The Seventh Pay Commission has recommended that the non-performing Central government employees will not get annual increment if their performance is not up to the mark.
The benchmark for performance appraisal for promotion and financial upgradation has been enhanced to "very good" from "good" level, the finance ministry said in an order notifying implementation of Seventh Central Pay Commission's recommendations.
The Modified Assured Career Progression (MACP) scheme will continue to be administered at 10, 20 and 30 years of service as before, the ministry said as it "accepted" the pay panel's recommendations.
The recommendation of "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" has been "accepted", it said.
The Commission has also recommended introduction of the Performance Related Pay (PRP) for all categories of central government employees.
The pay panel had in its report to the Centre said that 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. This commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.
"The Commission is therefore proposing 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," it had said.
There are about 50 lakh Central government employees.
In other reports, the central government employees and pensioners are likely to get their 6 months of arrears in October.
Reports further say that increased salary of July will be credited to the 47 lakh central government employees and 52 lakh pensioners' accounts on August 1, 2016. But the arrears of last 6 months will be credited in one installment in October.