Date of Implementation of MACPS Scheme

The recent legal case delves into a crucial aspect of the Modified Assured Career Progression Scheme (MACPS) regarding the date of its implementation for civilian employees of the Central Government. The court’s thorough analysis on this matter sheds light on the complexities surrounding financial advancements and their retrospective or prospective application. This case summary emphasizes the significance of legal scrutiny in matters affecting government policies and employee benefits.


  • The first financial upgradation under the ACP Scheme is allowed after 12 years of regular service, and the second after 12 years from the first upgradation.
  • If the first upgradation is postponed due to various reasons, the second upgradation will also be deferred accordingly.
  • MACP is provided after 10 years in the same grade for employees who have not been promoted.
  • If an employee already received one regular promotion, the second financial upgradation is granted after 24 years of regular service.
  • Beyond a certain level, no further financial upgradations are given, and higher posts are filled based on vacancies.
  • ACPS only involves placement in higher pay scales or financial benefits on a personal basis.
  • No benefits under the ACP Scheme are given if an employee has already received two prior promotions.
  • The Tribunal ruled against a claim for financial upgradation under MACPS from a certain date.
  • The High Court directed the second financial upgradation under MACPS to be granted from a specific date.
  • The nature of ACP and MACP schemes was discussed in various court judgments.
  • A policy decision regarding revised pay scales and allowances was implemented from specific dates.
  • Instructions issued on certain dates were found to be contrary to previous resolutions.
  • The highest pay-scale for financial upgradation under the Scheme was specified.
  • Respondent preferred representations on 22.03.2012 and 21.08.2009 requesting the implementation of MACPS w.e.f. 01.01.2006
  • MACP scheme provides financial upgradation after 10 years of continuous service in the same grade pay
  • Respondent, a GCS Group ‘A’ officer, was denied the benefit of MACPS
  • Central Pay Commission submitted its report on 24 March, 2008, accepted by the Central Government with respect to revised scales of pay and dearness allowances w.e.f. 01.2006
  • No response was received to the representations made by the Respondent, leading to the filing of O.A. No.38 of 2014 in the Central Administrative Tribunal
  • Scheme for financial upgradation to Organized Group ‘A’ services being implemented for the first time

Also Read: Legal Analysis on Seniority Fixation in Contempt Petitions


  • The main issue in these appeals is whether the Government of India is justified in implementing the Modified Assured Career Progression Scheme (MACPS) for civilian employees of the Central Government from 01.09.2008 instead of 01.01.2006.
  • The specific case discussed is that of a Respondent who was appointed as Deputy Director in the Bureau of Industrial Costs and Prices in Ministry of Industry, subsequently merged with Tariff Commission, and later promoted as Director in grade pay of Rs.3700-125-4700-50-5000 by an order dated 09.02.1994.

Also Read: Judicial Analysis on Selection Process


  • MACPS provides financial upgradation in higher grade pay in the same pay band
  • ACP Scheme provided financial upgradation to the next grade pay of promotional post
  • The Respondent cannot seek applicability of MACPS from 01.2006
  • Benefit of MACPS was considered from 01.01.2006 in Balbir Singh Turn case
  • ACPS and MACPS are incentive schemes to relieve stagnation
  • ACPS was in vogue till 31.08.2008 as stated in M.V. Mohanan Nair case
  • Implementing MACPS from 01.01.2006 could lead to detrimental effects for the Respondent and others as huge amounts of money may have to be recovered

Also Read: Legal Analysis of Decision-making Authority in Municipality Dispute


  • Revised allowances other than dearness allowance recommended by the 6 Pay Commission were implemented from 01.09.2008.
  • MACPS is a Government policy following Pay Commission recommendations, thus not applicable from 01.01.2006.
  • Resolution dated 30.08.2008 accepted the 6 Pay Commission recommendations for civilian employees from 01.01.2006 in terms of revised scales of pay and dearness allowances.
  • Respondents and similar officers not entitled to MACPS benefits from 01.01.2006 as per resolution of 29.08.2008
  • Implementing MACPS by granting next grade pay instead of next promotional post from 01.2006 would be detrimental, especially for retirees
  • Benefits of ACP & MACP Schemes are incentives, not part of pay
  • Uniform implementation of MACPS from 01.2006 would result in large-scale recoveries due to excess payments
  • Resolution of 29.08.2008 effective from 01.09.2008 for allowances other than Pay and DA, including financial upgradations under ACP & MACP


  • The judgment of the High Court has been set aside and the Appeals have been allowed.
  • The issue of the date from which MACP has to be implemented was highlighted.
  • Other issues concerning the entitlement of the Respondents to claim benefits under the ACP Scheme in the next promotional post of Sub-Inspector were brought up.
  • Further hearing of the Appeals is scheduled after the summer vacation.

Case Title: UNION OF INDIA Vs. RK SHARMA (2021 INSC 275)

Case Number: C.A. No.-001579-001579 / 2021

Click here to read/download original judgement

Leave a Reply

Your email address will not be published. Required fields are marked *