Am I Eligible for a Stagnation Increment After a Minor Penalty in My PSU Job?

I am working in a PSU in the cadre of scale 3 with a basic salary of 75,000.00. In September 2017, I reached stagnation. The next stagnation increment was due in September 2020. In March 2018, as per CDA Rules, 23(4), a minor penalty was imposed—a reduction of one increment for a period of two years without cumulative effect.

Now, my company says that I am eligible for the stagnation increment in September 2023, i.e., three years from September 2020. Is it correct?

This interpretation that you are eligible for the next increment only in September 2023 is not correct. Presumably, the stagnation increment is due after three years. You had served at the basic pay of Rs. 75,000 from September 2017 to March 2018 and again from March 2020 to September 2020, which completed one year. September 2021 will be the completion of two years, and September 2022 will complete three years, making you eligible for the next increment.

The interpretation that for the next increment the service will start only from September 2020 defies logic, as the service of 12 months at the basic pay of Rs. 75,000 cannot be ignored or wished away. The stagnation increment period cannot be increased to four years, nor can the effect of the punishment period be extended. If you had been at any interim stage in the pay scale, wouldn't you have received a regular increment in September 2020 after completing the punishment period? You may strongly contest the misinterpretation of rules.

Understanding "Without Cumulative Effect" in the Order

The order states "without CUMULATIVE EFFECT." I will be retiring in January 2022, and as per the information provided, I will not be eligible for a stagnation increment as I am retiring in January 2022. This will have a severe financial impact on my lower PF amount, leave encashment, and pension for my entire lifetime, including lower pension commutation. What is the meaning of the cumulative effect in the order? Please enlighten me.

Impact of Penalty on Retirement Benefits

As you are retiring in January '22, the punishment order has the effect of permanently reducing your pay, consequently affecting your retirement benefits. Furthermore, what started as a minor penalty is now becoming a major penalty.

Understanding the Penalty

The punishment of reducing one increment for a period of two years without cumulative effect means and implies that you would be restored to the pre-punishment position upon completion of the penalty period. This restoration is possible only in September '22, but it has now become impossible.

Appeal and Review Options

If you have not exhausted the appeal or review provision, highlight these aspects and try to convince the appellate or reviewing authority. The breach of the rules is palpable; you can successfully challenge the order in the judicial forum on this point alone.