What Does "Four Years with Cumulative Effect" Mean for My Pay and Promotion?

I worked as a peon. Due to some reason, I was charge-sheeted. After all the inquiries and everything was done, fortunately, I am safe. However, a minor/major punishment imposed on me is "Reduction to lower stage in time scale of pay by two stages for four years with cumulative effect." My present Basic Pay is 6450, but they reduced it to 6050 (two years' increment deducted).

My question is, what does "four years with cumulative effect" mean if two years have already gone by? Am I eligible for the promotion exam within this period? PLEASE HELP?!

My understanding is that you will get your increments after two more years. (Two years have already passed as per what you have written).

Sir, this is the next paragraph.

"The basic of Shri..xxx is hereby reduced from 6450 to 6050 and fixed at 6050 with effect from the date of this order. Do you think 2 years have gone by? And what about promotion?"

Understanding Stoppage of Increments: "Without Cumulative Effect" vs. "With Cumulative Effect"

My interpretation of the stoppage of increments for four years "without cumulative effect" and "with cumulative effect" is as follows:

In the former case, the employee will not receive any increments for four years. However, at the end of these four years, when the increment becomes due, the employee will receive all these increments (four increments that were on hold) together with the fifth-year increment at once. In this scenario, the employee does not suffer a significant financial loss.

In the latter case, the employee's basic salary is fixed at a lower stage and remains the same for four years. After this period, the employee will start earning increments from the fixed stage. For example, if the basic salary is reduced to 6050 (lowering it by two increments from 6450), then after four years, the employee will start receiving the first increment. The following year, the employee will return to the stage they were at before the punishment, i.e., 6450. This effectively results in losing six years of increments.

Eligibility for Promotion Test

Whether you are eligible to write the promotion test depends on the rules of the state. I presume this is a case of State or Central Service Rules and not a private establishment where such wider interpretations of law are not required. If there is nothing preventing an employee who has already been awarded a punishment from appearing for the promotion test, then you can also appear. Sometimes, the rules may prescribe a minimum period before which one cannot appear for such tests.

Regards,
Madhu.T.K

Sir, Madhu T.K., thank you for the answer. I am a bank employee, and I don't know the promotion rules in the bank. Suppose I'm eligible to appear for a promotion to clerk next year, how will my basic pay be calculated?

Once you are promoted, you will first be fixed at the minimum basic pay applicable to a clerk, and then given increments according to the length of service. When considering the length of service, the number of years for which you were not given any increment as part of punishment will not be counted. Fixation will vary from industry to industry and, within the same industry, from establishment to establishment. However, in the case of the organized sector, the general fixation policy will be followed. I am not from the banking sector; therefore, I am unable to comment on how much your basic salary would be if you were to receive a promotion next year.

Regards,
Madhu.T.K