MACP Benefits Not Meant For Employees Who Have Already Received Higher Grade Pay: Delhi High Court

The Delhi High Court has observed that the benefits under the MACP (Modified Assured Career Progression) schemes is not meant for the Central Government employees who have already received a higher grade pay.A division bench comprising Justice Navin Chawla and Justice Madhu Jain said that the scheme in question is designed to provide relief only where an employee remains stagnant in the same Grade Pay for 10, 20, or 30 years. “However, where an employee has already received an advancement to a higher Grade Pay, the foundational premise of stagnation ceases to exist. The MACP Scheme does not contemplate granting benefits to employees who have already escaped the Grade Pay stagnation through any other mechanism/scheme,” the Court said.The Bench was dealing with cross petitions, one filed by various employees of the Central Government challenging an order passed by the Central Administrative Tribunal disentitling them to the benefits under MACP Schemes, citing their upgradation in higher pay grade. Another petition was filed by the Union Government against the CAT order which held the employees entitled for MACP benefits on the ground that their placement as HS Grade-I cannot be treated as an upgradation. Denying relief to the employees, the Bench said that the objective of the MACP Scheme is to give relief to the employee stagnated in the same Grade Pay, by providing them periodical financial upgradations to the immediate next higher Grade Pay. It added that any advancement to a higher Grade Pay, be it styled as promotion, financial upgradation, or placement following restructuring, must be reckoned for purposes of the MACP Scheme.The Bench said that the case in question was not a case of mere re-designation, but involved advancement to a higher Grade Pay based on seniority following restructuring. To ignore this advancement and grant MACP benefits would be to confer double benefit, which goes against the objective of the MACP Scheme, it added. “In view of the above, we find that the petitioners, having been placed in HS Grade-I pursuant to the de-merger of the post based on their seniority, are not entitled to the grant of the MACP Scheme benefits,” the Court said. The Bench set aside the CAT order passed in the Union Government's petition and set aside the order passed in the matter concerning the central government employees.Title: UNION OF INDIA & ORS v. SATYVIR SINGH & ORS & other connected matterCitation: 2025 LiveLaw (Del) 1314Click here to read order

MACP Benefits Not Meant For Employees Who Have Already Received Higher Grade Pay: Delhi High Court

Nupur Thapliyal

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