Amendments to the Fundamental Rules

What the notification does

The Amendments to the Fundamental Rules were issued by the Government of Tamil Nadu Personnel and Administrative Reforms Department through G.O. Ms. No. 39, dated 30th March 2016. The Governor of Tamil Nadu made the amendments using powers under Articles 309 and 313 of the Constitution of India.

The notification changes Fundamental Rule 22B, which governs fixation of pay when a government servant is promoted or appointed to a post carrying duties and responsibilities of greater importance. The amendments are deemed to have come into force on 1st January 2006.

Who is affected

Fundamental Rule 22B, as amended, affects Tamil Nadu government servants whose pay must be fixed following promotion or appointment to a higher post. It also addresses employees who moved to Selection Grade or Special Grade in a lower post and were later promoted or appointed to a higher post.

The notification does not contain provisions about land ownership, registration, planning, development, acquisition or property transactions. Property buyers and owners are not directly affected unless they are also government servants whose service pay falls within these provisions.

Key provisions

The amendments provide that:

• Initial pay in the higher post is fixed by granting an increment equal to three percent of pay in the pay band plus existing grade pay, rounded to the next multiple of 10.
• The difference between the grade pay of the feeder post and the promotion post is then added.
• Where promotion changes the pay band, the same method applies. If the resulting pay is below the minimum of the higher pay band, it is stepped up to that minimum.
• Pay exceeding the maximum of the pay band may be fixed beyond that maximum, with a biennial stagnation increment at three percent of basic pay including grade pay.
• An option concerning fixation from promotion or from the next increment date must be exercised within one month. Once exercised, it is final.
• If no option is exercised within one month, pay is fixed from the date of promotion or appointment.
• The next increment is allowed after the required qualifying period of one year from the relevant pay fixation date.
• For specified Selection Grade or Special Grade cases, the employee may continue in an identical or higher pay band and grade pay, with one increment based on the option exercised.
• The pay fixation methods have notional effect from 1st January 2006 and monetary benefit from 1st January 2007.