Increment: In Indian service law, particularly for government employees, an increment represents a periodic increase in salary within a pay scale, acting as a financial reward for continued service, contingent upon satisfactory performance and adherence to service rules. These increments, primarily annual, stagnation, or efficiency bar-related, are governed by Fundamental Rules (FR), Central Civil Services (CCS) Rules, and State Service Rules. An annual increment, typically automatic, can be withheld due to inefficiency or disciplinary actions, while a stagnation it addresses situations where employees reach the maximum of their pay scale without promotion.
The efficiency bar increment is specifically withheld if an employee fails to meet performance standards. The withholding of increments can occur as a penalty under Rule 11 of CCS (CCA) Rules, 1965, due to inefficiency as measured by the efficiency bar, or for administrative reasons such as prolonged absence. Judicial interpretations emphasize that increments are conditional benefits, not absolute rights, and their withholding must be justified and not arbitrary.
Recent changes, notably from the 7th Pay Commission, have standardized annual increases to 3% of basic pay, with fixed increment dates. Essentially, an enhancement in salary is a crucial component of employee compensation, subject to performance-based evaluations and legal safeguards against unjust denial.
Also read: Notional promotion