Understanding Grade Pay: How Does Promotion Affect Your Pay Scale Progression?

Dear Sirs,

Kindly clarify the following: In the grade pay system, an employee's pay scale of 5000-500-20500 in the first year. In the third year, will he receive a basic pay of 6500 in the same grade? If he is promoted to the next grade, will he be placed in the third stage of that grade or the first stage of the new grade?

Sridharan A HR

It is difficult to tell at what stage he can be when he is promoted as the formula for fitment on promotion is part of internal policy. However, the basic principle for fitment on promotion can be that the employee shall be fitted at a stage higher in the grade than what he would be in the present grade had he not been promoted. Other views are welcome.

B. Saikumar

He will be fitted in the next higher scale. Let us say he is getting Rs. 6500 in the present grade; on promotion, he will move above Rs. 6500 in the next grade.

Understanding Grade Pay and Promotion in Government Service

Grade Pay is a novel concept introduced for Central Government Servants based on the recommendations of the Sixth Pay Commission and has been adopted by many State Governments. It is constant for a particular grade (for instance, Rs. 1900/- for an LDC and Rs. 2400/- for a UDC) and remains the same as long as the employee continues in the same grade. On promotion, the employee is placed in the grade of the new post.

What is shown in the query is a scale of pay. On promotion, the employee will be placed in the scale of pay of the promoted post. Fitment will be based on the pay in the lower post. The querist is requested to post the correct information if there is a real problem.

Regards

Many times, it is seen that an employee is promoted but continues to do the same work as he was doing before the promotion. This is not a good practice. A promotion must be accompanied by higher responsibility, which naturally means a higher grade and higher pay. A mere increase in the salary can be achieved by an extra increment as well.

Dear All,

We are a project management organization specializing in construction supervision. Currently, we are implementing a performance-based salary system. We are considering transitioning to a grade pay system from site supervisor to project manager roles. This concept is new to us, and our job analysis is ongoing. Could you kindly provide feedback on whether the grade pay system would be suitable for private organizations?

Thank you.