GENC Urges DoPT to Amend NFGP Rules, Requesting Extension of ₹5400 Grade Pay Benefit to MACP Beneficiaries

New Delhi | Published: June 8, 2026

The Government Employees National Confederation (GENC), affiliated with the Bharatiya Mazdoor Sangh (BMS), has formally approached the Department of Personnel & Training (DoPT) seeking a crucial amendment to long-standing Ministry of Finance guidelines regarding Non-Functional Grade Pay (NFGP). The Confederation is advocating for the removal of restrictions that currently deny the ₹5400 Grade Pay benefit (in Pay Band-2) to employees who attained the ₹4800 Grade Pay milestone through financial upgradations rather than regular promotions.

In an official communication dated June 5, 2026, GENC Secretary General Mukesh Singh requested a modification to Paragraph 3 of the Ministry of Finance’s clarification letter dated February 11, 2009. The Confederation contends that the current restrictive interpretation has triggered widespread, avoidable litigation and created unjustified disparities among similarly placed personnel.

Background of the Dispute

Following the implementation of the 6th Central Pay Commission (CPC) recommendations, specific Group ‘B’ officers were rendered eligible for a non-functional upgradation to Grade Pay ₹5400 in PB-2 upon completing four years of regular service in Grade Pay ₹4800.

However, a subsequent 2009 clarification from the Ministry of Finance stipulated that this advancement would only apply if the ₹4800 Grade Pay was secured via a regular promotional avenue. Consequently, personnel who reached the ₹4800 benchmark via the Assured Career Progression (ACP) or Modified Assured Career Progression (MACP) schemes have been systematically excluded from the NFGP benefit.

Judicial Precedents Favoring Personnel

The GENC underscored that the judiciary has consistently ruled against this administrative distinction. The letter highlighted the landmark Madras High Court judgment in M. Subramaniam vs. Union of India (2010), which affirmed that the entry into Grade Pay ₹5400 is strictly contingent on completing four years in Grade Pay ₹4800, irrespective of the mode of advancement. This ruling was later upheld by the Supreme Court of India.

"Compelling individual employees to seek judicial intervention for identical, settled relief places an unnecessary administrative and financial burden on both the workforce and the public exchequer."

Furthermore, various benches of the Central Administrative Tribunal (CAT)—including Kolkata, Allahabad, Mumbai, Chandigarh, Hyderabad, and Jabalpur—have routinely granted relief to affected employees. Most recently, in May 2026, the Kolkata and Allahabad Benches issued fresh directives ordering the immediate extension of this benefit to eligible applicants.

Call for Administrative Uniformity

To resolve this issue systematically, the GENC has urged the DoPT, in coordination with the Ministry of Finance, to issue a comprehensive, overriding directive ensuring that:

• All employees completing four years of service in Grade Pay ₹4800 are granted the Non-Functional Grade Pay of ₹5400 in PB-2.
• The benefit is extended uniformly, regardless of whether the ₹4800 grade pay was achieved via regular promotion, ACP, MACP, or any alternative financial upgradation scheme.

Impact: If accepted, this policy amendment will provide equitable relief to thousands of Central Government employees, streamlining administrative processes and eliminating systemic litigation across departments.